Document:

Execution Copy

                            STOCK PURCHASE AGREEMENT

     This Stock Purchase Agreement (this "Agreement") is made and entered into
as of November 13, 2006, by and between TOWER GROUP, INC., a Delaware
corporation (the "Company"), and CASTLEPOINT REINSURANCE COMPANY, LTD, a Bermuda
corporation (the "Purchaser").

                                    RECITALS

     WHEREAS, the Company has authorized the sale and issuance of up to an
aggregate of 40,000 shares of its Series A Preferred Stock (the "Shares") to the
Purchaser; and

     WHEREAS, the Purchaser desires to purchase the Shares and the Company
desires to issue and sell the Shares to the Purchaser on the terms and
conditions set forth herein;

                                    AGREEMENT

     NOW, THEREFORE, in consideration of the foregoing recitals and the mutual
promises, representations, warranties, and covenants hereinafter set forth and
for other good and valuable consideration, the receipt and sufficiency of which
are hereby acknowledged, the parties hereto agree as follows:

     1. CERTAIN DEFINITIONS.

     For all purposes of this Agreement, the following terms shall have the
respective meanings set forth in this Article 1 (such definitions to be equally
applicable to both the singular and plural forms of the terms herein defined):

     "8-K Filing" has the meaning ascribed to such term in Section 6.3.

     "2005 Annual Report" has the meaning ascribed to such term in Section
4.6(a).

     "Action" means any legal, administrative, arbitration or other similar
suit, inquiry, notice of violation, investigation, proceeding, claim, or action.

     "Affiliate" means any Person that, directly or indirectly through one or
more intermediaries, controls or is controlled by or is under common control
with a Person, as such terms are used in and construed under Rule 144 under the
Securities Act.

     "Agreement" has the meaning ascribed to such term in the Recitals.

     "Applicable Law" means any federal, state, local or foreign statute, law,
ordinance, rule, regulation, order, writ, injunction, judgment, decree,
directive, principle of common law or interpretation of any of the foregoing by
a Governmental Authority applicable to a Person or any such Person's
subsidiaries, properties, assets, officers, directors, employees or agents.

     "Bylaws" has the meaning ascribed to such term in Section 4.4.

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     "Certificate of Designations" has the meaning ascribed to such term in
Section 2.1.

     "Certificate of Incorporation" has the meaning ascribed to such term in
Section 2.1.

     "Closing" has the meaning ascribed to such term in Section 3.1.

     "Closing Date" has the meaning ascribed to such term in Section 3.1.

     "Common Stock" has the meaning ascribed to such term in Section 2.1.

     "Contracts" shall mean all written agreements, contracts, commitments and
undertakings, indentures, notes, bonds, loans, instruments, treaties, leases,
mortgages and other binding arrangements.

     "Conversion Shares" has the meaning ascribed to such term in Section 2.1.

     "Disclosure Schedule" has the meaning ascribed to such term in the preamble
to Article 4.

     "Domiciliary Regulators" means the Governmental Authorities responsible for
regulating insurance companies in the Insurance Companies' respective states of
domicile.

     "DTC" has the meaning ascribed to such term in Section 7.1.

     "DTC Transfer Conditions" has the meaning ascribed to such term in Section
7.1.

     "Encumbrance" means any lien, pledge, security interest, easement or
encumbrance of any kind or nature whatsoever, and any agreement to give or grant
or permit any of the foregoing; provided that this definition of "Encumbrance"
shall not include: (i) liens for current Taxes and assessments not yet due and
payable, including, without limitation, liens for non-delinquent ad valorem
Taxes, non-delinquent statutory liens arising other than by reason of any
default on the part of the Company or the Subsidiaries and liens for Taxes being
contested by the Company in good faith, (ii) such liens, minor imperfections of
title or easements on real property, leasehold estates or personal property as
do not in any material respect detract from the value thereof and do not in any
material respect interfere with the present use of the property subject thereto,
(iii) materialmen's, mechanics', workmen's, repairmen's, employees', carriers',
warehousemen's and other like liens arising in the ordinary course of business
or relating to any construction, rebuilding or repair of any property leased, so
long as the obligations to which such liens relate are not delinquent and also
so long as any such lien does not materially impair the value of such leased
property, (iv) any such lien, pledge, security interest, easement or encumbrance
arising solely as a result of any action taken by Purchaser or any of its
Affiliates and (v) any limitation or restriction imposed upon the transfer of
the Securities by any registration provision of the Securities Act of 1933, as
amended, or any applicable state securities law regulating the disposition of
the Securities.

     "Exchange Act" has the meaning ascribed to such term in Section 4.6.

     "GAAP" has the meaning ascribed to such term in Section 4.6.

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     "Global Select Market" has the meaning ascribed to such term in Section
4.13.

     "Governmental Authority" means any nation or government, any state or other
political subdivision thereof, any entity exercising executive, legislative,
judicial, regulatory or administrative functions of or pertaining to government
or any self-regulatory agency, commissioner or authority.

     "Indemnities" has the meaning ascribed to such term in Section 9.11.

     "Indemnified Liabilities" has the meaning ascribed to such term in Section
9.11.

     "Insurance Company" means any Subsidiary that is engaged in the business of
issuing insurance policies.

     "Insurance Contract" means any insurance policy, annuity contract, or
guaranteed investment contract entered into with a customer whether directly or
by reinsurance.

     "Investigation" means any governmental or regulatory investigation.

     "Lock-Up Period" has the meaning ascribed to such term in Section 7.5.

     "Material Adverse Effect" has the meaning ascribed to such term in Section
4.1.

     "Non-Domiciliary Regulators" means the Governmental Authorities responsible
for regulating insurance companies outside of the Insurance Companies'
respective states of domicile.

     "Permits" means all licenses, permits, orders, consents, approvals,
registrations, authorizations, qualifications and filings with and under all
Applicable Laws and Governmental Authorities and all industry or other
non-governmental self-regulatory organizations.

     "Person" means any individual, corporation, company, partnership (limited
or general), joint venture, limited liability company, association, trust, a
government, any department or agency thereof or any other entity.

     "Press Release" has the meaning ascribed to such term in Section 6.3.

     "Purchaser" has the meaning ascribed to such term in the Recitals.

     "Registration Rights Agreement" has the meaning ascribed to such term in
Section 3.2.

     "Regulation D" has the meaning ascribed to such term in the Recitals.

     "Required Minimum" means, as of any date, 125% of the maximum aggregate
number of shares of Common Stock then issuable in the future pursuant to the
Transaction Documents, including any Conversion Shares issuable upon the

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exchange of all Shares, ignoring any exchange, conversion or exercise limits set
forth therein, determined on the basis of the Exchange Rate (as defined in the
Certificate of Designation), in each case as in effect on the Trading Day
immediately prior to the date of determination.

     "Rule 144" means Rule 144 promulgated by the SEC pursuant to the Securities
Act, as such Rule may be amended from time to time, or any similar rule or
regulation hereafter adopted by the SEC having substantially the same effect as
such Rule.

     "SEC" has the meaning ascribed to such term in Section 4.3(b).

     "SEC Reports" has the meaning ascribed to such term in Section 4.6.

     "Securities Act" has the meaning ascribed to such term in Section 4.6.

     "Security" and "Securities" have the meaning ascribed to such terms in
Section 2.1.

     "Select SEC Reports" has the meaning ascribed to such term in Section 4.6.

     "Shares" has the meaning ascribed to such term in the Recitals.

     "Subsidiaries" has the meaning ascribed to such term in Section 4.1.

     "Tax" means (i) all federal, state, local and foreign taxes, charges, fees,
imposts, levies and other assessments, including, without limitation, all
income, gross receipts, capital, sales, use, ad valorem, value added, transfer,
franchise, profits, inventory, capital stock, license, payroll, employment,
social security, unemployment, excise, severance, stamp, occupation, property
and estimated taxes, all taxes which are required to be withheld, customs
duties, fees, assessments and charges of any kind whatsoever, (ii) all interest,
penalties, fines, additions to tax and additional amounts imposed by any Taxing
Authority in connection with any item described in clause (i), and (iii) any
transferee liability in respect of any items described in clauses (i) or (ii)
payable by reason of contract, assumption, transferee liability, operation of
law, Treasury Regulation Section 1.1502-6(a) (or any predecessor or successor
thereof of any analogous or similar provision under law) or otherwise.

     "Taxing Authority" means the Internal Revenue Service or any other
Governmental Authority responsible for the administration of any Tax.

     "Trading Day" means a day on which the Common Stock is traded on the Global
Select Market.

     "Transaction Documents" has the meaning ascribed to such term in Section
3.2.

     2. AGREEMENT TO SELL AND PURCHASE.

          2.1 Authorization of Shares. The Company has authorized (a) the sale
and issuance to Purchaser of the Shares and (b) the issuance of such shares of
its common stock, par value $0.01 per share (the "Common Stock") to be issued
upon conversion of the Shares (the "Conversion Shares"). The Shares and the
Conversion Shares are collectively

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referenced herein as the "Securities" and each of them may individually be
referred to herein as a "Security." The Securities have the rights, preferences,
privileges and restrictions set forth in the Amended and Restated Certificate of
Incorporation of the Company (the "Certificate of Incorporation") and the
Certificate of Designations of the Series A Preferred Stock attached hereto as
Exhibit A (the "Certificate of Designations").

          2.2 Sale and Purchase. Subject to the terms and conditions hereof, at
the Closing (as hereinafter defined), the Company hereby agrees to issue and
sell to the Purchaser, and the Purchaser agrees to purchase from the Company,
the Shares. The purchase price to be paid by the Purchaser to the Company for
the Shares to be sold and purchased hereunder shall be $40,000,000.

     3. CLOSING, DELIVERY AND PAYMENT.

          3.1 Closing. Subject to the satisfaction (or waiver) of the conditions
set forth in Article 8 hereof, the closing of the sale and purchase of the
Shares (the "Closing") shall take place at 10:00 a.m., New York City time, on
December 4, 2006, at the offices of the Company, 120 Broadway, New York, New
York 10271 or at such other time or place as the Company and the Purchaser shall
mutually agree (such date is hereinafter referred to as the "Closing Date").

          3.2 Delivery. At the Closing, subject to the terms and conditions
hereof, (i) the Company will deliver to the Purchaser a certificate representing
the Shares, against payment by the Purchaser of the purchase price therefor by
check or wire transfer made payable to the order of the Company and (ii) the
Company and the Purchaser shall execute and deliver the Registration Rights
Agreement in the form attached hereto as Exhibit B (the "Registration Rights
Agreement"). This Agreement, the Registration Rights Agreement and the
Certificate of Designations are collectively referred to herein as the
"Transaction Documents."

          3.3 Placement Fee. The Company shall pay to the Purchaser a placement
fee equal to $400,000. Such amount shall be deducted from the purchase price
payable pursuant to Section 2.2.

          3.4 Fees and Expenses. Subject to Section 3.3 or as otherwise set
forth herein or the Registration Rights Agreement, the Company and the Purchaser
shall each be responsible for the fees and expenses incurred by it in connection
with this Agreement and the transactions contemplated hereby.

     4. REPRESENTATIONS AND WARRANTIES OF THE COMPANY.

     Except as set forth under the corresponding section of the disclosure
schedule delivered to the Purchaser concurrently herewith (the "Disclosure
Schedule"), the Company hereby represents and warrants as of the date hereof to
Purchaser as follows:

          4.1 Organization, Good Standing and Qualification. The Company and
each of its direct and indirect subsidiaries (collectively, the "Subsidiaries")
is a corporation duly incorporated, validly existing and in good standing under
the laws of the jurisdiction in

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which it is incorporated, and has all requisite corporate power and authority to
own and operate its properties and assets, to carry on its business as presently
conducted The Company and each of its Subsidiaries is duly qualified to do
business and is in good standing as a foreign corporation in all jurisdictions
in which the nature of its activities and of its properties (both owned and
leased) makes such qualification necessary, except for those jurisdictions in
which failure to do so would not have or reasonably be expected to have a
Material Adverse Effect. For purposes of this Agreement, "Material Adverse
Effect" means any effect which, individually or in the aggregate with all other
effects, reasonably would be expected to be materially adverse to (i) the
legality, validity or enforceability any of the Transaction Documents or the
Securities, (ii) the ability of the Company to perform on a timely basis its
obligations under this Agreement or any of the other Transaction Documents or
(iii) the business, operations, assets, properties, prospects, reputation,
financial condition or results of operations of the Company and its
Subsidiaries, taken as a whole.

          4.2 Authorization; Binding Obligations. (i) The Company has the
requisite corporate power and authority to execute and deliver this Agreement
and the other Transaction Documents, to issue and sell the Securities in
accordance with the terms thereof and to carry out the provisions of this
Agreement and the other Transaction Documents, and (ii) all corporate action on
the part of the Company, its officers, directors and stockholders necessary for
the authorization, execution and delivery of this Agreement and each of the
other Transaction Documents, the performance of all obligations of the Company
hereunder and thereunder and the authorization, sale, issuance and delivery of
the Shares pursuant hereto and the Conversion Shares pursuant to the Certificate
of Incorporation and the Certificate of Designations has been taken. Assuming
that this Agreement and the Registration Rights Agreement have been duly
authorized, executed and delivered by the Purchaser and constitute valid and
binding obligations of the Purchaser, this Agreement is, and the other
Transaction Documents will be at the Closing, valid and binding obligations of
the Company enforceable in accordance with their terms, except (a) as limited by
applicable bankruptcy, insolvency, reorganization, moratorium or other laws of
general application affecting enforcement of creditors' rights, (b) general
principles of equity that restrict the availability of equitable remedies, and
(c) to the extent that the enforceability of the indemnification provisions in
the Registration Rights Agreement may be limited by Applicable Law.

          4.3 Capitalization; Voting Rights.

          (a) The authorized capital stock of the Company consists of 40 million
shares of Common Stock and two million shares of preferred stock, par value
$0.01 per share ("Preferred Stock"), of which 40,000 shares are (or upon filing
of the Certificate of Designation, will be) designated as Series A Preferred
Stock. As of November 1, 2006, 19,982,038 shares of Common Stock were issued and
outstanding and no shares of Preferred Stock were issued and outstanding.

          (b) Except as provided in the Company's filings with the United States
Securities and Exchange Commission (the "SEC"), and except for the Securities,
there are no outstanding options, warrants, scrip, rights (including conversion,
anti-dilution or preemptive rights and rights of first refusal or similar
rights), or contracts, commitments, understandings or agreements of any kind by
which the Company or any of its Subsidiaries is or

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may become bound to issue any of its securities, nor are any such issuances,
contracts, commitments, understandings or arrangements contemplated.

          (c) All issued and outstanding shares of capital stock of the Company
(i) have been duly authorized and validly issued and are fully paid and
nonassessable, and (ii) were issued in compliance with all applicable state and
federal laws concerning the issuance of securities.

          (d) The Company does not have any shareholder rights plan, "poison
pill" or other anti-takeover plans or similar arrangements.

          (e) Except as set forth in the Company's filings with the SEC, there
are no proxy, stockholder agreements, voting agreements or other similar
agreements with respect to the Company's capital stock to which the Company is a
party or, to the knowledge of the Company, between or among any of the Company's
stockholders.

          (f) The Company or one of its Subsidiaries has the unrestricted right
to vote, and (subject to limitations imposed by Applicable Law) to receive
dividends and distributions on, all shares of capital stock of its Subsidiaries
as owned by the Company or any such Subsidiary.

          (g) The rights, preferences, privileges and restrictions of the
Securities are as stated in the Certificate of Incorporation and the Certificate
of Designations. The Securities are duly authorized and when issued in
compliance with the provisions of this Agreement, the Certificate of
Designations and the Certificate of Incorporation, (i) the Securities will be
validly issued, fully paid and non-assessable, and will be free of any liens,
taxes, claims or other Encumbrances and (ii) will not be subject to preemptive
rights, rights of first refusal or other similar rights of stockholders of the
Company or any other person provided, however, that the Shares and the
Conversion Shares may be subject to restrictions on transfer under the
Registration Rights Agreement, state and/or federal securities laws as set forth
herein or as otherwise required by such laws at the time a transfer is proposed.
As of the Closing Date, the Company shall have reserved from its duly authorized
capital stock a number of shares of Common Stock for issuance of the Conversion
Shares at least equal to the Required Minimum on the date hereof.

          4.4 Compliance with Other Instruments; Absence of Conflicts. Neither
the Company nor any of its Subsidiaries is in violation or default of, and the
execution, delivery, and performance of and compliance with this Agreement and
the other Transaction Documents by the Company, and, assuming the accuracy of
the warranties and representations of the Purchaser herein, the issuance and
sale of the Shares pursuant hereto and of the Conversion Shares pursuant to the
Certificate of Incorporation and the Certificate of Designations, will not, with
or without the passage of time or giving of notice, result in any violation of,
or be in conflict with or constitute a default under, (i) any term of the
Certificate of Incorporation or the Company's bylaws as in effect on the date
hereof (the "Bylaws") or the Subsidiaries' organizational documents, (ii) any
provision of any Contract to which the Company or any of its Subsidiaries is
party or by which it or any of them or any of its or their respective properties
is bound or affected, or (iii) any Applicable Law to which the Company or any of
its Subsidiaries is subject

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(including United States federal and state securities laws, rules and
regulations and rules and regulations of any self-regulatory organizations to
which either the Company or its securities are subject) or by which any property
or asset of the Company or any of its Subsidiaries is bound or affected, other
than, in the case of clauses (ii) and (iii), any such violation, default,
conflict that would not, individually or in the aggregate, have a Material
Adverse Effect. The execution, delivery, and performance by the Company of and
compliance by the Company with this Agreement and the other Transaction
Documents, and the issuance and sale of the Shares pursuant hereto and of the
Conversion Shares pursuant to the Certificate of Incorporation and the
Certificate of Designations, will not, with or without the passage of time or
giving of notice, result in the creation of any Encumbrance or charge upon any
of the properties or assets of the Company or any of its Subsidiaries or the
suspension, revocation, impairment, forfeiture or nonrenewal of any Permit
applicable to the Company or any of its Subsidiaries or any of its or their
assets or properties, other than any such Encumbrances, charges, suspensions,
revocations, impairments, forfeitures or nonrenewals that would not,
individually or in the aggregate, have a Material Adverse Effect.

          4.5 Consents. No governmental orders, permissions, consents, approvals
or authorizations are required to be obtained by the Company and no
registrations or declarations are required to be filed by the Company in
connection with the execution and delivery of this Agreement or the issuance of
the Shares or the Conversion Shares, except such as have been duly and validly
obtained or filed, or with respect to any filings that must be made after the
Closing, as will be filed in a timely manner.

          4.6 SEC Reports; Financial Statements. The Company has filed in a
timely manner (within applicable extension periods) all documents that the
Company was required to file with the SEC under the Securities Act of 1933, as
amended (the "Securities Act") and the Securities Exchange Act of 1934, as
amended (the "Exchange Act"), preceding the date of this Agreement (all of the
foregoing filed prior to the date hereof and all exhibits included therein and
financial statements and schedules thereto and documents incorporated by
reference therein, the "SEC Reports"). The SEC Reports complied in all material
respects with the applicable requirements of the Exchange Act or the Securities
Act, as the case may be, and the rules and regulations of the SEC as of their
respective filing dates, and the information contained therein as of the date
thereof did not contain an untrue statement of a material fact or omit to state
a material fact required to be stated therein or necessary to make the
statements therein, in light of the circumstances under which they were made,
not misleading. Except as disclosed on Section 4.6 of the Disclosure Schedule,
none of the statements made in any such SEC Reports is, or has been, required to
be amended or updated under Applicable Law (except for such statements as have
been amended or updated in subsequent filings made prior to the date hereof). As
of their respective dates, the financial statements of the Company included in
the SEC Reports complied as to form in all material respects with applicable
accounting requirements and the published rules and regulations of the SEC
applicable with respect thereto. Such financial statements have been prepared in
accordance with U.S. generally accepted accounting principles ("GAAP"),
consistently applied, during the periods involved (except as may be otherwise
indicated in such financial statements or the notes thereto or, in the case of
unaudited interim statements, to the extent they may not include footnotes or
may be condensed or summary statements) and fairly present in all material
respects the consolidated financial position of the

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Company and its consolidated Subsidiaries as of the dates thereof and the
consolidated results of their operations and cash flows for the periods then
ended (subject, in the case of unaudited statements, to normal year-end audit
adjustments). Except as set forth in the most recent financial statements of the
Company included in the Select SEC Reports, the Company has no liabilities,
contingent or otherwise, other than (i) liabilities incurred in the ordinary
course of business subsequent to the date of such financial statements and (ii)
liabilities incurred in the ordinary course of business and not required under
GAAP to be reflected in such financial statements, which liabilities and
obligations referred to in clauses (i) and (ii), individually or in the
aggregate, are not material to the financial condition or operating results of
the Company. For purposes of this Agreement, "Select SEC Reports" means the
Company's (A) Proxy Statement for its 2006 Annual Meeting, (B) Annual Report on
Form 10-K/A for the fiscal year ended December 31, 2005 (the "2005 Annual
Report"), (C) Quarterly Reports on Form 10-Q for the fiscal quarters ended March
31, 2006, June 30, 2006, September 30, 2006 and (D) Current Reports on Form 8-K
filed since September 30, 2006.

          4.7 Absence of Certain Changes; No Material Adverse Effect. Except as
set forth in the Select SEC Reports, since December 31, 2005, there has been no
event or occurrence which has had or would reasonably be expected to have a
Material Adverse Effect. The Company has not taken any steps, and does not
currently expect to take any steps, to seek protection pursuant to any
bankruptcy or receivership law, nor does the Company or any of its Subsidiaries
have any knowledge or reason to believe that its creditors intend to initiate
involuntary bankruptcy proceedings with respect to the Company or any of its
Subsidiaries.

          4.8 Filings. Except as set forth in the Select SEC Reports or in
Section 4.8 of the Disclosure Schedule, since January 1, 2004, (i) the Company
and the Subsidiaries have filed all material reports, statements, documents,
registrations, filings and submissions required to be filed with any
Governmental Authority, and all such reports, statements, documents,
registrations, filing and submissions complied in all material respects with
Applicable Law in effect when filed, and (ii) no material deficiencies have been
asserted in writing by, nor have any material comments been received from, nor
any material penalties imposed by, any such Governmental Authorities with
respect to such reports, statements, documents, registrations, filings or
submissions.

          4.9 Permits. The Company and its Subsidiaries have all Permits in each
of the jurisdictions in which the Company and the Subsidiaries conduct or
operate their respective businesses as now being conducted, and all such Permits
are in full force and effect, with such exceptions which singularly and in the
aggregate have not and would not reasonably be expected to have a Material
Adverse Effect, and the Company believes it or its Subsidiaries can obtain,
without undue burden or expense, any similar authority for the conduct of their
respective businesses as planned to be conducted. The Company and the
Subsidiaries are, and at all times since January 1, 2004 have been, in
compliance in all material respects with the terms of the Permits. No event has
occurred or circumstance exists that (with or without the giving of notice or
lapse of time or both) (1) constitutes or would reasonably be expected to result
in, directly or indirectly, a violation of, or a failure to comply with any
Permit, or (2) has resulted or would reasonably be expected to result, directly
or indirectly, in the revocation, withdrawal, suspension, cancellation, or
termination of, or any modification to, any Permit, except for such violations
or failures to comply or revocations, withdrawals, suspensions, cancellations,

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terminations or modifications that would not reasonably be expected to have a
Material Adverse Effect. The consummation of the transactions contemplated by
this Agreement and the other Transaction Documents will not result in any
revocation, cancellation, suspension or nonrenewal of any such material Permit.

          4.10 Litigation.

          (a) Except as disclosed in the Select SEC Reports and other than
Actions arising in the ordinary course of business from or related to the
obligations of the Company under any Insurance Contract or similar contract
written, assumed or reinsured by the Company, there are no pending or, to the
knowledge of the Company, threatened Actions against and to the knowledge of the
Company, no pending or threatened Investigations of, the Company, any Subsidiary
or any of their properties or assets challenging the validity or propriety of,
or that have the effect of preventing, delaying, making illegal or otherwise
interfering with any of the transactions contemplated by this Agreement or the
other Transaction Documents.

          (b) As of the date of this Agreement, there are no pending Actions or,
to the knowledge of the Company, threatened material Actions against, and to the
knowledge of the Company, no pending or threatened Investigations of, any
current or former officer or director of any of the Company or the Subsidiaries
in his or her capacity as an officer or director of any of the Company or the
Subsidiaries.

          4.11 Registration Rights. Except as required pursuant to the
Registration Rights Agreement and except as disclosed in the SEC Reports, the
Company is presently not under any obligation, and has not granted any rights,
to register under the Securities Act, any of the Company's presently outstanding
securities or any of its securities that may hereafter be issued.

          4.12 Broker's Fees. No agent, broker, investment banker, person or
firm acting on behalf of or under the authority of the Company is or will be
entitled to any fee or commission from the Purchaser directly or indirectly in
connection with the transactions contemplated herein.

          4.13 Listing and Maintenance Requirements. The Common Stock is
registered pursuant to Section 12(b) of the Exchange Act, and the Company has
taken no action designed to, or which to its knowledge is likely to have the
effect of, terminating the registration of the Common Stock under the Exchange
Act nor has the Company received any notification that the Commission is
contemplating terminating such registration. The Common Stock is currently
listed for trading on the Nasdaq Global Select Market (the "Global Select
Market"). The Company has not received notice from the Global Select Market on
which the Common Stock is or has been listed or quoted to the effect that the
Company is not in compliance with the listing or maintenance requirements of the
Global Select Market. The Company is, and has no reason to believe that it will
not continue to be, in compliance with all such listing and maintenance
requirements. Prior to the conversion of the Shares, the Company shall secure
the listing of the Conversion Shares on the Global Select Market and on each
other national securities exchange, automated quotation system or
over-the-counter market upon which the shares of Common Stock are then listed
(subject to official notice of issuance). The issuance and

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delivery of the Shares pursuant hereto and the Conversion Shares pursuant to the
Certificate of Incorporation and the Certificate of Designations will not
constitute a change of control under the rules of the Global Select Market.

          4.14 Anti-Takeover Provisions. The Company and its board of directors
have taken all necessary action, if any, in order to render inapplicable any
control share acquisition, business combination, poison pill (including any
distribution under a rights agreement) or other similar anti-takeover provision
under its Certificate of Incorporation or the laws of the state of its
incorporation (including ss.203 of the Delaware General Corporation Law) which
is or could become applicable to Purchaser as a result of the transactions
contemplated by this Agreement, including, without limitation, the Company's
issuance of the Securities and Purchaser's ownership of the Securities.

          4.15 Private Placement. Assuming the accuracy of the Purchaser's
representations and warranties set forth in Section 5.3, no registration under
the Securities Act or any state securities laws is required for the offer and
sale of the Securities by the Company to Purchaser as contemplated hereby. The
issuance and sale of the Securities hereunder does not contravene the rules and
regulations of the Global Select Market or any state securities laws.

          4.16 No General Solicitation or Integrated Offering. Neither the
Company nor any distributor participating on the Company's behalf in the
transactions contemplated hereby (if any) nor any Person acting for the Company,
or any such distributor, has conducted any "general solicitation" (as such term
is defined in Regulation D) or general advertising with respect to any of the
Securities being offered hereby. Neither the Company nor any of its Affiliates,
nor any person acting on its or their behalf, has directly or indirectly made
any offers or sales of any security or solicited any offers to buy any security
under circumstances that would require registration of the Securities being
offered hereby under the Securities Act or cause this offering of Securities to
be integrated with any prior offering of securities of the Company for purposes
of the Securities Act, which result of such integration would require
registration under the Securities Act, or that would be integrated with the
offer or sale of the Securities for the purpose of the rules and regulations of
the Global Select Market or any applicable stockholder approval provisions.

     5. REPRESENTATIONS AND WARRANTIES OF THE PURCHASER.

          The Purchaser hereby represents and warrants to the Company as follows
(provided that such representations and warranties do not lessen or obviate the
representations and warranties of the Company set forth in this Agreement):

          5.1 Organization and Good Standing. The Purchaser is duly organized,
validly existing and in good standing under the laws of the Islands of Bermuda.
The Purchaser has all requisite corporate power and authority to own and operate
its properties and assets, to carry on its business as presently conducted, to
execute and deliver this Agreement and the Registration Rights Agreement and to
carry out the provisions of this Agreement and the Registration Rights
Agreement.

                                       11
<PAGE>

          5.2 Requisite Power and Authority. All corporate action on the part of
the Purchaser, its officers, directors and stockholders necessary for the
authorization, execution and delivery of this Agreement and the Registration
Rights Agreement and the performance of all obligations of the Purchaser
hereunder and thereunder has been taken. Assuming that this Agreement and the
Registration Rights Agreement have been duly authorized, executed and delivered
by the Company and constitute valid and binding obligations of the Company, this
Agreement is, and the Registration Rights Agreement will be at the Closing,
valid and binding obligations of the Purchaser enforceable in accordance with
their terms, except (a) as limited by applicable bankruptcy, insolvency,
reorganization, moratorium or other laws of general application affecting
enforcement of creditors' rights, (b) general principles of equity that restrict
the availability of equitable remedies, and (c) to the extent that the
enforceability of the indemnification provisions in the Registration Rights
Agreement may be limited by applicable laws.

          5.3 Investment Representations. The Purchaser understands that neither
the Shares nor the Conversion Shares have been registered under the Securities
Act or under any state or non-U.S. securities law. The Purchaser also
understands that the Shares are being offered and sold pursuant to an exemption
from registration contained in the Securities Act based in part upon the
Purchaser's representations contained in this Agreement. The Purchaser hereby
represents and warrants as follows:

          (a) The Purchaser Bears Economic Risk. The Purchaser is knowledgeable,
sophisticated and experienced in making, and is qualified to make decisions with
respect to investments in shares presenting an investment decision like that
involved in the purchase of the Shares capable of evaluating the merits and
risks of its investment in the Company and has the capacity to protect its own
interests. The Purchaser understands that it must bear the economic risk of this
investment indefinitely unless the Shares (or the Conversion Shares) are
transferred in a transaction that is registered pursuant to the Securities Act
or exempt from registration. The Purchaser understands that the Company has no
present intention of registering the Shares or the Conversion Shares except as
provided in the Registration Rights Agreement. The Purchaser also understands
that there is no assurance that any exemption from registration under the
Securities Act will be available for any proposed transfer of the Shares or the
Conversion Shares and that, even if available, such exemption may not allow the
Purchaser to transfer all or any portion of the Shares or the Conversion Shares
under the circumstances, in the amounts or at the times the Purchaser might
propose.

          (b) Acquisition for Own Account. The Purchaser is acquiring the Shares
and the Conversion Shares for the Purchaser's own account for investment only,
and not with a view towards their distribution.

          (c) Accredited Investor. The Purchaser represents that it is an
institutional "accredited investor" within the meaning of Regulation D under the
Securities Act.

          (d) Company Information. The Purchaser has received and read the SEC
Reports and has had an opportunity to discuss the Company's business, management
and financial affairs with directors, officers and management of the Company and
has had the opportunity to review the Company's operations and facilities. The
Purchaser has

                                       12
<PAGE>

also had the opportunity to ask questions of and receive answers from, the
Company and its management regarding the terms and conditions of this
investment. The Purchaser has, in connection with the decisions to purchase the
Shares, relied only upon the SEC Reports and the representations and warranties
of the Company set forth in the Transaction Documents.

          (e) No Action Outside the United States. The Purchaser acknowledges
that the Company has taken no action or will take any action in any jurisdiction
outside the United States to permit an offering of the Shares or the Conversion
Shares, or possession or distribution of offering materials in connection with
the issuance of the Shares or the Conversion Shares, in any jurisdiction outside
the United States where legal action by the Company for that purpose is
required. The Purchaser will comply with all applicable laws and regulations in
each jurisdiction outside the United States in which it purchases, offers, sells
or delivers Shares or Conversion Shares or has in its possession or distributes
any offering material, in each case at its own expense.

          5.4 Transfer Restrictions. The Purchaser acknowledges and agrees that
the Shares and, if issued, the Conversion Shares are subject to restrictions on
transfer as set forth herein and in the Registration Rights Agreement.

          5.5 Covering Short Positions. The Purchaser will not use the Shares or
the Conversion Shares to cover any short position in the Common Stock if doing
so would be in violation of applicable securities laws.

          5.6 No Legal, Tax or Investment Advice. The Purchaser understands that
nothing in the SEC Reports, this Agreement, the Registration Rights Agreement or
any other materials presented to the Purchaser in connection with the purchase
and sale of the Shares constitutes legal, tax or investment advice. The
Purchaser has consulted such legal, tax and investment advisors as it, in its
sole discretion, has deemed necessary or appropriate in connection with its
purchase of the Shares.

          5.7 Ownership of Company Stock. None of the Purchaser or the
Purchaser's subsidiaries beneficially owns (as such term is defined for purposes
of Section 13(d) of the Exchange Act) any shares of the Common Stock of the
Company or any other class or series of the Company's capital stock.

          5.8 Broker's Fees. Except for the fee of the Purchaser's financial
advisor referred to in Section 3.3, no agent, broker, investment banker, person
or firm acting on behalf of or under the authority of the Purchaser is or will
be entitled to any fee or commission from the Company directly or indirectly in
connection with the transactions contemplated herein.

     6. COVENANTS

          6.1 Best Efforts. The parties shall use their respective best efforts
timely to satisfy each of the conditions described in Sections 8.1 and 8.2 of
this Agreement.

                                       13
<PAGE>

          6.2 Form D. The Company shall file with the SEC a Form D with respect
to the Securities as required under Regulation D and provide a copy thereof to
Purchaser promptly after such filing.

          6.3 Press Release; Form 8-K; Publicity. The Company shall issue on or
before the next business day following the date hereof a press release (the
"Press Release") announcing the entry into the transactions contemplated hereby
and shall within two days following the date hereof file a Current Report on
Form 8-K with the SEC concerning this Agreement and the transactions
contemplated hereby (the "8-K Filing"). The Company and the Purchaser shall
consult with each other in issuing any other press releases with respect to the
transactions contemplated hereby, and neither the Company nor the Purchaser
shall issue any such press release or otherwise make any such public statement
without the prior consent of the Company, with respect to any press release of
the Purchaser, or without the prior consent of the Purchaser, with respect to
any press release of the Company, which consent shall not unreasonably be
withheld, except if such disclosure is required by law, in which case the
disclosing party shall promptly provide the other party with prior notice of
such public statement or communication.

          6.4 Reservation of Shares. The Company shall, if applicable: (i) in
the time and manner required by the Global Select Market, but in any event prior
to the conversion of the Shares into Common Stock, prepare and file with the
Global Select Market an additional shares listing application covering a number
of shares of Common Stock at least equal to the Required Minimum on the date of
such application, (ii) take all steps necessary to cause such shares of Common
Stock to be approved for listing on the Global Select Market as soon as possible
thereafter, (iii) provide to the Purchaser evidence of such listing, and (iv)
from and after the conversion of the Shares into Common Stock, maintain the
listing of such Common Stock on the Global Select Market.

          6.5 No Integrated Offerings. The Company shall not make any offers or
sales of any security (other than the Securities) under circumstances that would
require registration of the Securities being offered or sold hereunder under the
Securities Act or cause this offering of the Securities to be integrated with
any other offering of securities by the Company for purposes of any stockholder
approval provision applicable to the Company or its securities.

          6.6 Legal Compliance. The Company shall conduct its business and the
business of its Subsidiaries in compliance with all Applicable Laws, except
where the failure to do so would not have a Material Adverse Effect.

          6.7 Information. So long as Purchaser (or any of its Affiliates)
beneficially owns any of the Securities, the Company shall furnish to Purchaser
the information the Company must deliver to any holder or to any prospective
transferee of Securities in order to permit the sale or other transfer of such
Securities pursuant to Rule 144A of the SEC or any similar rule then in effect.
The Company shall keep at its principal executive office a true copy of this
Agreement (as at the time in effect), and cause the same to be available for
inspection at such office during normal business hours by any holder of
Securities or any prospective transferee of Securities designated by a holder
thereof.

                                       14
<PAGE>

          6.8 Pledge of Securities. The Company acknowledges and agrees that the
Securities may be pledged by Purchaser in connection with a bona fide margin
agreement or other loan or financing arrangement that is secured by the
Securities. The pledge of Securities shall not be deemed to be a transfer, sale
or assignment of the Securities hereunder, and if Purchaser effects a pledge of
Securities, it shall not be required to provide the Company with any notice
thereof or otherwise make any delivery to the Company pursuant to this Agreement
or any other Transaction Document. The Company shall execute and deliver such
documentation as a pledgee of the Securities may reasonably request in
connection with a pledge of the Securities to such pledgee by Purchaser.

          6.9 Investment Company Act. The Company shall conduct its business in
a manner so that it will not be required to register as an investment company
under the Investment Company Act.

     7. SECURITIES TRANSFER MATTERS.

          7.1 Conversion and Exercise. Upon conversion of the Shares by any
person, (i) if the DTC Transfer Conditions (as defined below) are satisfied, the
Company shall cause its transfer agent to electronically transmit all Conversion
Shares by crediting the account of such person or its nominee with the
Depository Trust Company ("DTC") through its Deposit Withdrawal Agent Commission
system; or (ii) if the DTC Transfer Conditions are not satisfied, the Company
shall issue and deliver, or instruct its transfer agent to issue and deliver,
certificates (subject to the legend and other applicable provisions hereof and
the Certificate of Designation), registered in the name of such person its
nominee, physical certificates representing the Conversion Shares. Even if the
DTC Transfer Conditions are satisfied, any person effecting a conversion of
Shares may instruct the Company to deliver to such person or its nominee
physical certificates representing the Conversion Shares, in lieu of delivering
such shares by way of DTC Transfer. For purposes of this Agreement, "DTC
Transfer Conditions" means that (A) the Company's transfer agent is
participating in the DTC Fast Automated Securities Transfer program and (B) the
certificates for the Conversion Shares required to be delivered do not bear a
legend and the person effecting such conversion or exercise is not then required
to return such certificate for the placement of a legend thereon.

          7.2 Transfer or Resale. Purchaser understands that (i) except as
provided in the Registration Rights Agreement, the sale or resale of the
Securities have not been and are not being registered under the Securities Act
or any state securities laws, and the Securities may not be transferred unless
(A) the transfer is made pursuant to and as set forth in an effective
registration statement under the Securities Act covering the Securities; or (B)
Purchaser shall have delivered to the Company an opinion of counsel reasonably
satisfactory to the Company (which opinion shall be in form, substance and scope
customary for opinions of counsel in comparable transactions) to the effect that
the Securities to be sold or transferred may be sold or transferred pursuant to
an exemption from such registration; or (C) sold or transferred to an affiliate
of Purchaser that agrees to be bound by this Article 7; and (ii) neither the
Company nor any other person is under any obligation to register such Securities
under the Securities Act or any state securities laws (other than pursuant to
the terms of the Registration Rights Agreement). Notwithstanding the foregoing
or anything else contained herein to the contrary,

                                       15
<PAGE>

the Securities may be pledged as collateral in connection with a bona fide
margin account or other lending arrangement, provided such pledge is consistent
with Applicable Laws.

          7.3 Legends. Purchaser understands that the Shares and, until such
time as the Conversion Shares have been registered under the Securities Act
(including registration pursuant to Rule 416 thereunder) as contemplated by the
Registration Rights Agreement or otherwise may be sold by such Purchaser under
Rule 144, the Certificates for the Conversion Shares may bear a restrictive
legend in substantially the following form:

          THE SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN
          REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR THE
          SECURITIES LAWS OF ANY STATE OF THE UNITED STATES OR IN ANY OTHER
          JURISDICTION. THE SECURITIES REPRESENTED HEREBY MAY NOT BE OFFERED,
          SOLD OR TRANSFERRED IN THE ABSENCE OF AN EFFECTIVE REGISTRATION
          STATEMENT FOR THE SECURITIES UNDER APPLICABLE SECURITIES LAWS UNLESS
          OFFERED, SOLD OR TRANSFERRED PURSUANT TO AN AVAILABLE EXEMPTION FROM
          THE REGISTRATION REQUIREMENTS OF THOSE LAWS.

     The Company shall, immediately prior to a registration statement covering
the Securities (including, without limitation, the Registration Statement
contemplated by the Registration Rights Agreement) being declared effective,
deliver to its transfer agent an opinion letter of counsel, opining that at any
time such registration statement is effective, the transfer agent may issue, in
connection with the issuance of the Conversion Shares, certificates representing
such Conversion Shares without the restrictive legend above, provided such
Conversion Shares are to be sold pursuant to the prospectus contained in such
registration statement. Upon receipt of such opinion, the Company shall cause
the transfer agent to confirm, for the benefit of the holders, that no further
opinion of counsel is required at the time of transfer in order to issue such
shares without such restrictive legend.

     The legend set forth above shall be removed and the Company shall issue a
certificate without such legend to the holder of any Security upon which it is
stamped, if, unless otherwise required by state securities laws, (i) the sale of
such Security is registered under the Securities Act (including registration
pursuant to Rule 416 thereunder) or (ii) such holder provides the Company with
an opinion of counsel, in form, substance and scope customary for opinions of
counsel in comparable transactions, to the effect that a public sale or transfer
of such Security may be made without registration under the Securities Act. If
the holder of any Security is an affiliate of the Company, the legend on any
such Security shall not be so removed. In the event the above legend is removed
from any Security and thereafter the effectiveness of a registration statement
covering such Security is suspended or the Company determines that a supplement
or amendment thereto is required by applicable securities laws, then upon
reasonable advance written notice to Purchaser the Company may require that the
above legend be placed on any such Security that cannot then be sold pursuant to
an effective registration statement or under Rule 144 and Purchaser shall
cooperate in the replacement of such legend. Such legend shall thereafter be
removed when such Security may again be sold pursuant to an effective
registration statement or under Rule 144.

                                       16
<PAGE>

          7.4 Transfer Agent Instruction. Upon compliance by Purchaser with the
provisions of this Article 7 with respect to the transfer of any Securities, the
Company shall permit the transfer of such Securities and, in the case of the
transfer of Conversion Shares, promptly instruct its transfer agent to issue one
or more certificates (or effect a DTC Transfer) in such name and in such
denominations as specified by Purchaser. The Company shall not give any
instructions to its transfer agent with respect to the Securities, other than
any permissible or required instructions provided in this Article 7, and the
Securities shall otherwise be freely transferable on the books and records of
the Company as and to the extent provided in this Agreement.

          7.5 Lock-Up Period. During the period from the date hereof until 180
days from such date (the "Lock-Up Period"), the Purchaser will not (a) directly
or indirectly, offer, sell, agree to offer or sell, solicit offers to purchase,
grant any call option or purchase any put option with respect to, pledge, borrow
or otherwise dispose of any Registrable Security, as defined in the Registration
Rights Agreement, (b) establish or increase any "put equivalent position" or
liquidate or decrease any "call equivalent position" with respect to any
Registrable Security (in each case within the meaning of Section 16 of the
Exchange Act and the rules and regulations promulgated thereunder), or (c)
otherwise enter into any swap, derivative or other transaction or arrangement
that transfers to another, in whole or in part, any of the economic consequence
of ownership of a Registrable Security, whether or not such transaction is to be
settled by delivery of Registrable Securities, other securities, cash or other
consideration.

     8. CONDITIONS TO CLOSING.

          8.1 Conditions to the Purchaser's Obligations to Purchase the Shares.
The Purchaser's obligations to purchase the Shares at the Closing are subject to
the satisfaction or waiver on or prior to the Closing Date of the following
conditions:

          (a) Representations and Warranties True; Performance of Obligations.
The representations and warranties made by the Company in Article 4 shall be
true and correct in all material respects as of the Closing Date, with the same
force and effect as if they had been made on and as of said date, and the
Company shall have performed, satisfied and complied with all obligations,
covenants and conditions herein required to be performed, satisfied or complied
with by it on or prior to the Closing.

          (b) Legal Investment. On the Closing Date, the sale and issuance of
the Shares and the proposed issuance of the Conversion Shares shall be legally
permitted by all laws and regulations to which the Purchaser and the Company are
subject.

          (c) Consents, Permits, Waivers and Approvals. The Company and the
Purchaser shall have obtained any and all consents, permits, waivers and
approvals necessary or appropriate for consummation of the transactions
contemplated by this Agreement and the other Transaction Documents and such
consents, permits, waivers and approvals shall be in full force and effect.

          (d) Compliance Certificate. The Company shall have delivered to the
Purchaser a Compliance Certificate, executed by the Senior Vice President and

                                       17
<PAGE>

CFO of the Company, dated the Closing Date to the effect that the conditions
specified in subsections (a) and (c) (as it pertains to the Company) of this
Section 8.1 have been satisfied.

          (e) Listing. The Common Stock shall be authorized for quotation and
listed on the Global Select Market and trading in the Common Stock (or on the
Global Select Market generally) shall not have been suspended by the SEC or the
Global Select Market.

          (f) Certificate of Designations. The Certificate of Designations,
substantially in the form attached hereto as Exhibit A, shall have been approved
and adopted by the Company.

          (g) Registration Rights Agreement. The Registration Rights Agreement,
substantially in the form attached hereto as Exhibit B, shall have been executed
and delivered by the Company.

          8.2 Conditions to Obligations of the Company to Issue and Sell the
Shares. The Company's obligation to issue and sell the Shares to the Purchaser
at the Closing is subject to the satisfaction or waiver of the following
conditions:

          (a) Representations and Warranties True. The representations and
warranties in Article 5 made by the Purchaser shall be true and correct in all
material respects as of the Closing Date, with the same force and effect as if
they had been made on and as of said date, and the Purchaser shall have
performed all obligations and conditions herein required to be performed or
observed by it on or prior to the Closing.

          (b) Consents, Permits, Waivers and Approvals. The Company and the
Purchaser shall have obtained any and all consents, permits, waivers and
approvals necessary or appropriate for consummation of the transactions
contemplated by this Agreement and the other Transaction Documents and such
consents, permits, waivers and approvals shall be in full force and effect.

          (c) Compliance Certificate. The Purchaser shall have delivered to the
Company a Compliance Certificate, executed by an executive officer of the
Purchaser, dated the Closing Date to the effect that the conditions specified in
subsections (a) and (b) (as it pertains to the Purchaser) of this Section 8.2
have been satisfied.

     9. MISCELLANEOUS.

          9.1 Governing Law. This Agreement shall be governed by and construed
under the laws of the State of Delaware. The parties agree that any action
brought by either party under or in relation to this Agreement, including
without limitation to interpret or enforce any provision of this Agreement,
shall be brought in, and each party agrees to and does hereby submit to the
jurisdiction and venue of, any state or federal court located in the County of
New Castle, State of Delaware. The Company irrevocably waives the defense of an
inconvenient forum to the maintenance of such suit or proceeding in such forum.
The Company

                                       18
<PAGE>

further agrees that service of process upon the Company mailed by first class
mail shall be deemed in every respect effective service of process upon the
Company in any such suit or proceeding. Nothing herein shall affect the right of
Purchaser to serve process in any other manner permitted by law. The Company
agrees that a final non-appealable judgment in any such suit or proceeding shall
be conclusive and may be enforced in other jurisdictions by suit on such
judgment or in any other lawful manner.

          9.2 Successors and Assigns. The Purchaser may assign its right to
purchase the Shares to any one or more direct or indirect majority-owned
subsidiaries; provided that no such assignment shall relieve the Purchaser of
its obligations hereunder to the extent that the assignee fails to fulfill the
same. Upon any such permitted assignment, the references in this Agreement to
the Purchaser shall also apply to any such assignee unless the context otherwise
requires. Except as otherwise expressly provided herein, the provisions hereof
shall inure to the benefit of and be binding upon the parties hereto and their
respective successors, assigns, heirs, executors and administrators; provided,
however, that prior to the receipt by the Company of adequate written notice of
the transfer of any Shares specifying the full name and address of the
transferee, the Company may deem and treat the person listed as the holder of
such Shares in its records as the absolute owner and holder of such Shares for
all purposes.

          9.3 Entire Agreement. This Agreement, the Disclosure Schedule and the
other Transaction Documents and the other documents delivered pursuant hereto or
thereto constitute the full and entire understanding and agreement between the
parties with regard to the subjects hereof.

          9.4 Severability. In the event one or more of the provisions of this
Agreement should, for any reason, be held to be invalid, illegal or
unenforceable in any respect, such invalidity, illegality or unenforceability
shall not affect any other provisions of this Agreement, and this Agreement
shall be construed as if such invalid, illegal or unenforceable provision had
never been contained herein.

          9.5 Amendment and Waiver. This Agreement may be amended or modified,
and the rights and obligations of the Company and the Purchaser may be waived,
only upon the written consent of the Company and the holders of at least a
majority of the Shares purchased or agreed to be purchased pursuant to this
Agreement.

          9.6 Notices. All notices or other communications required or permitted
hereunder shall be in writing and shall be deemed effectively given: (i) upon
personal delivery to the party to be notified, (ii) upon receipt, if sent by
facsimile during normal business hours of the recipient or, if not sent by
facsimile during normal business hours of the recipient, then on the next
business day; (iii) three days after having been sent, if sent by registered or
certified mail, return receipt requested, postage prepaid; or (iv) one day after
deposit with a nationally recognized overnight courier, if sent by such a
courier, specifying next day delivery, with written verification of receipt.
Notices to the Company shall be addressed to:

                  Tower Group, Inc.
                  120 Broadway, 31st Floor

                                       19
<PAGE>

                  New York, New York 10271
                  Attention:  Stephen L. Kibblehouse, Esq.
                  Fax Number: (646) 514-8612

   with a copy to:

                  LeBoeuf, Lamb, Greene & MacRae LLP
                  125 West 55th Street
                  New York, New York 10019
                  Attention:  Matthew Ricciardi, Esq.
                  Fax Number: (212) 424-8500

   Notices to the Purchaser shall be addressed to:

                  CastlePoint Reinsurance Company, Ltd.
                  Victoria House
                  11 Victoria House
                  Hamilton HM 11  Bermuda
                  Attention:  Joel Weiner
                  Fax Number:  (441) 292-4720

   with a copy to:

                  CastlePoint Holdings, Ltd.
                  120 Broadway
                  New York, NY 10271
                  Attention: Roger A. Brown
                  Fax Number: (212) 847-9549

          9.7 Titles and Subtitles. The titles of the sections and subsections
of the Agreement are for convenience of reference only and are not to be
considered in construing this Agreement.

          9.8 Third Party Beneficiaries. This Agreement is intended for the
benefit of the parties hereto and their respective permitted successors and
assigns, and is not for the benefit of, nor may any provision hereof be enforced
by, any other person.

          9.9 Survival. The representations and warranties of the Company and
the agreements and covenants set forth in Sections 4, 6, 7 and 9 hereof shall
survive until the one year anniversary of the Closing notwithstanding any due
diligence investigation conducted by or on behalf of Purchaser. Moreover, none
of the representations and warranties made by the Company herein shall act as a
waiver of any rights or remedies Purchaser may have under applicable U.S.
federal or state securities laws.

          9.10 Further Assurances. Each party shall do and perform, or cause to
be done and performed, all such further acts and things, and shall execute and
deliver all such other agreements, certificates, instruments and documents, as
the other party may reasonably

                                       20
<PAGE>

request in order to carry out the intent and accomplish the purposes of this
Agreement and the consummation of the transactions contemplated hereby.

          9.11 Indemnification. In consideration of Purchaser's execution and
delivery of this Agreement and the other Transaction Documents and purchase of
the Securities hereunder, and in addition to all of the Company's other
obligations under this Agreement and the other Transaction Documents, from and
after the Closing, the Company shall defend, protect, indemnify and hold
harmless Purchaser and all of its officers, directors and employees and any of
the foregoing persons' agents or other representatives (including, without
limitation, those retained in connection with the transactions contemplated by
this Agreement, collectively, the "Indemnitees") from and against any and all
actions, causes of action, suits, claims, losses, costs, penalties, fees,
liabilities and damages, and expenses in connection therewith (irrespective of
whether any such Indemnitee is a party to the action for which indemnification
hereunder is sought), and including reasonable attorneys' fees and disbursements
(the "Indemnified Liabilities"), incurred by any Indemnitee as a result of, or
arising out of, or relating to (i) any misrepresentation or breach of any
representation or warranty made by the Company in this Agreement, any other
Transaction Document or any other certificate, instrument or document delivered
by the Company at the Closing or (ii) any breach of any covenant, agreement or
obligation of the Company contained in this Agreement, any other Transaction
Document or any other certificate, instrument or document delivered by the
Company at the Closing. To the extent that the foregoing undertaking by the
Company may be unenforceable for any reason, the Company shall make the maximum
contribution to the payment and satisfaction of each of the Indemnified
Liabilities which is permissible under Applicable Law. Except as otherwise set
forth herein, the procedures with respect to the rights and obligations under
this Section 9.11 shall be the same as those set forth in Section 6 of the
Registration Rights Agreement.

          9.12 Payment Set Aside. To the extent that the Company makes a payment
or payments to Purchaser, or the Purchaser makes a payment or payments to the
Company, hereunder or pursuant to any of the other Transaction Documents or
Purchaser or the Company enforces or exercises its respective rights hereunder
or thereunder, and such payment or payments or the proceeds of such enforcement
or exercise or any part thereof are subsequently invalidated, declared to be
fraudulent or preferential, set aside, recovered from, disgorged by or are
required to be refunded, repaid or otherwise restored to the Company or
Purchaser, as applicable, a trustee, receiver or any other person under any
Applicable Law (including, without limitation, any bankruptcy law, state or
federal law, common law or equitable cause of action), then to the extent of any
such restoration the obligation or part thereof originally intended to be
satisfied shall be revived and continued in full force and effect as if such
payment had not been made or such enforcement or setoff had not occurred.

          9.13 Joint Participation in Drafting. Each party to this Agreement has
participated in the negotiation and drafting of this Agreement and the other
Transaction Documents. As such, the language used herein and therein shall be
deemed to be the language chosen by the parties hereto to express their mutual
intent, and no rule of strict construction will be applied against any party to
this Agreement.

          9.14 Remedies. No provision of this Agreement or any other Transaction
Document providing for any remedy to Purchaser shall limit any other remedy

                                       21
<PAGE>

which would otherwise be available to Purchaser at law, in equity or otherwise.
Nothing in this Agreement or any other Transaction Document shall limit any
rights Purchaser may have under any applicable federal or state securities laws
with respect to the investment contemplated hereby.

          9.15 Knowledge. As used in this Agreement, the term "knowledge" of any
person or entity shall mean and include (i) actual knowledge and (ii) that
knowledge which a reasonably prudent business person could have obtained in the
management of his or her business affairs after making due inquiry and
exercising due diligence which a prudent business person should have made or
exercised, as applicable, with respect thereto.

          9.16 Arms-Length Transaction. Each of the Parties acknowledges and
agrees that they are acting on their own behalf and in the capacity of an
arm's-length purchaser or seller, as applicable. Each Party further acknowledges
and agrees that it has independently evaluated the merits of the transactions
contemplated by this Agreement and the other Transaction Documents, that it has
independently determined to enter into the transactions contemplated hereby and
thereby, that it is not relying on any advice from or evaluation by any other
person (other than its representatives), and that it is not acting in concert
with any other person in making its purchase of securities hereunder or in
monitoring its investment in the Company.

          9.17 Counterparts. This Agreement may be executed in any number of
counterparts, each of which shall be an original, but all of which together
shall constitute one instrument. Facsimile signatures shall be as effective as
original signatures.

                                       22
<PAGE>

     IN WITNESS WHEREOF, the parties hereto have executed the Stock Purchase
Agreement as of the date set forth in the first paragraph hereof.

                            TOWER GROUP, INC.

                            By:________________________________________
                               Name:
                               Title:

                           CASTLEPOINT REINSURANCE COMPANY, LTD.

                            By:________________________________________
                               Name:
                               Title:

<PAGE>

                                    Exhibit A

                           CERTIFICATE OF DESIGNATIONS

                                       OF

                            SERIES A PREFERRED STOCK

                                       OF

                                TOWER GROUP, INC.

                      ------------------------------------

             Pursuant to Section 151 of the General Corporation Law
                            of the State of Delaware
                      ------------------------------------

     Tower Group, Inc., a Delaware corporation (the "Company"), in accordance
with the provisions of Sections 103 and 151 of the General Corporation Law of
the State of Delaware (the "DGCL") thereof, does hereby make this Certificate of
Designations and DOES HEREBY CERTIFY:

     That the board of directors of the Company (the "Board") has the authority,
pursuant to the Amended and Restated Certificate of Incorporation of the Company
(the "Certificate of Incorporation") and the DGCL, to adopt resolutions
providing for the designations, preferences and relative, participating,
optional and other special rights, and qualifications, limitations or
restrictions of one or more series of preferred stock, par value $0.01 per
share, of the Company (the "Preferred Stock").

     That pursuant to resolutions of the Board of Directors adopted on o, 2006,
the creation of the Series A Preferred Stock, $0.01 par value per share (the
"Series A Preferred Stock"), was authorized and the designations, preferences
and relative, participating, optional and other special rights and
qualifications, limitations and restrictions of such Series A Preferred Stock,
in addition to those set forth in the Certificate of Incorporation and Amended
and Restated By-Laws (the "By-Laws") of the Company, were fixed as follows:

     1. Designation.
        -----------

     The designation of the Series A Preferred Stock shall be "Series A
Preferred Stock," and the number of shares constituting the Series A Preferred
Stock shall be 40,000. The Series A Preferred Stock shall have a liquidation
preference of $1,000 per share. The Company may from time to time, without
notice to or the consent of holders of the Series A Preferred Stock, issue
additional preferred stock. No such issuance shall affect the due authorization
of any issued and outstanding shares of the Series A Preferred Stock.

     2. Definitions.
        -----------

<PAGE>

     "Board" shall mean the Board of Directors of the Company or any duly
authorized committee of the Board of Directors.

     "Business Day" shall mean a day that is a Monday, Tuesday, Wednesday,
Thursday or Friday and is not a day on which banking institutions in New York
City generally are authorized or obligated by law or executive order to close.

     "Certificate of Designations" shall mean this Certificate of Designations
relating to the Series A Preferred Stock, as amended from time to time.

     "Change in Control" shall have the meaning assigned to such term in Section
6(a).

     "Common Stock" shall mean the common stock, par value $0.01 per share, of
the Company.

     "Conversion" shall have the meaning set forth in Section 5(a) hereof.

     "Conversion Date" shall have the meaning set forth in Section 5(a) hereof.

     "Dividend Payment Date" shall have the meaning assigned to such term in
Section 3(a)(i).

     "Dividend Period" shall have the meaning assigned to such term in Section
3(c).

     "Dividend Rate" shall mean 8.66% per annum.

     "Dividend Record Date" shall have the meaning assigned to such term in
Section 3(b).

     "Issue Date" shall mean the initial date of delivery of the Series A
Preferred Stock.

     "Junior Stock" shall mean the Common Stock and any other class or series of
shares of the Company that ranks junior to the Series A Preferred Stock either
as to the payment of dividends or as to the distribution of assets upon any
liquidation, dissolution or winding up of the Company.

     "Liquidation Preference" shall have the meaning assigned to such term in
Section 8(b).

     "Nonpayment" shall have the meaning assigned to such term in Section 10(b).

     "Optional Conversion Shares" shall have the meaning assigned to such term
in Section 5(a).

     "Parity Stock" shall mean any class or series of preferred shares of the
Company that ranks equally with the Series A Preferred Stock in the payment of
dividends and in the distribution of assets on any liquidation, dissolution or
winding up of the Company.

<PAGE>

     "Person" shall mean any individual, corporation, partnership, joint
venture, trust, limited liability company or corporation, unincorporated
organization or government or any agency or political subdivision thereof.

     "Preferred Stock Director" shall have the meaning assigned to such term in
Section 10(b).

     "solvent" shall have the meaning assigned to such term in Section 3(a).

     "Value of Consideration" shall have the meaning assigned to such term in
Section 6(a).

     "Voting Preferred Stock" shall mean any other class or series of preferred
stock of the Company ranking equally with the Series A Preferred Stock either as
to dividends or the distribution of assets upon liquidation, dissolution or
winding up and upon which voting rights similar to those granted to the holders
of the Series A Preferred Stock have been conferred and are exercisable.

     3. Dividends.
        ---------

     (a) Dividend Payment Dates. The holders of the Series A Preferred Stock
shall be entitled to receive cash dividends when, as and if declared by the
Board or a duly authorized committee of the Board, out of assets legally
available for that purpose and to the extent the Company is able to pay its
debts as they fall due ("solvent") after giving effect thereto, at the
applicable Dividend Rate set forth below in this Section 3. Dividends on the
Series A Preferred Stock shall be payable on a non-cumulative basis, quarterly
in arrears on the 27th day of March, June, September and December of each year,
the Mandatory Conversion Date and, if applicable, the date of consummation of
any Change in Control (each, a "Dividend Payment Date"), subject to Section
3(e).

     (b) Dividend Record Date. Each such dividend shall be paid to the holders
of record of the Series A Preferred Stock as they appear on the share register
of the Company on the applicable record date (each, a "Dividend Record Date"),
which shall be a record date fixed by the Board that is not more than 60 nor
less than 10 days prior to such Dividend Payment Date. The Dividend Record Date
shall apply regardless of whether any particular Dividend Record Date is a
Business Day.

     (c) Dividend Period. Each dividend period (a "Dividend Period") shall
commence on and include a Dividend Payment Date and shall run to but excluding
the next Dividend Payment Date, except that the initial Dividend Period will
commence on and include the Issue Date, and will run to and exclude the first
Dividend Payment Date thereafter.

     (d) Day Count Convention. The amount of dividends payable per share of
Series A Preferred Stock on each Dividend Payment Date will be calculated using
the per annum Dividend Rate and on the basis of a 360-day year consisting of
twelve 30-day months.

     (e) Business Day Convention. If any Dividend Payment Date is not a Business
Day, then dividends will be payable on the first Business Day following such
Dividend Payment Date

<PAGE>

unless such day is in the next calendar month, in which case dividends shall be
payable on the first Business Day preceding such Dividend Payment Date and
dividends, in each case, shall accrue to the actual payment date.

     (f) Junior Stock. So long as any shares of Series A Preferred Stock remain
outstanding for any Dividend Period, unless the full dividends for the current
Dividend Period on all outstanding Series A Preferred Stock and Parity Stock
have been declared and paid (or declared and a sum sufficient for the payment
thereof has been set aside): (i) no dividend whatsoever shall be paid or
declared during such Dividend Period on the Common Stock or other Junior Stock
(other than a dividend payable solely in Common Stock or other Junior Stock);
and (ii) no Common Stock or other Junior Stock shall be purchased, redeemed or
otherwise acquired for consideration by the Company, directly or indirectly
(other than as a result of a reclassification of such Junior Stock for or into
other Junior Stock, or the exchange or conversion of one share of Junior Stock
for or into another share of Junior Stock) during such Dividend Period.

     (g) Pro Rata Adjustments. When dividends are not paid in full (or duly
provided for) on any Dividend Payment Date (or, in the case of Parity Stock
having dividend payment dates different from the Dividend Payment Dates, on a
dividend payment date falling within a Dividend Period) upon the Series A
Preferred Stock and any Parity Stock, all dividends declared upon the Series A
Preferred Stock and all such Parity Stock payable on such Dividend Payment Date
(or, in the case of Parity Stock having dividend payment dates different from
the Dividend Payment Dates, on a dividend payment date falling within the
Dividend Period related to such Dividend Payment Date) shall be declared pro
rata so that the respective amounts of such dividends shall bear the same ratio
to each other as all accrued but unpaid dividends per share of Series A
Preferred Stock and all Parity Stock payable on such Dividend Payment Date (or,
in the case of Parity Stock having dividend payment dates different from the
Dividend Payment Dates, on a dividend payment date falling within the related
Dividend Period) bear to each other.

     (h) Additional Series A Preferred Stock. In the event that additional
shares of the Series A Preferred Stock are issued after the original issue date,
dividends on such shares may accrue from the original issue date or any other
date specified by the Company at the time such additional shares are issued.
These dividends will accrue, with respect to each Dividend Period, in the manner
set forth in Sections 3(a)(i) and 3(b).

     (i) Non-Cumulative Dividends. Dividends on Series A Preferred Stock shall
be non-cumulative. To the extent that any dividends payable on the Series A
Preferred Stock on any Dividend Payment Date are not declared and paid, in full
or otherwise, on such Dividend Payment Date, then such unpaid dividends shall
not cumulate and shall cease to accrue and be payable and the Company shall have
no obligation to pay dividends accrued for the applicable Dividend Period
subsequent to such Dividend Payment Date or to pay interest with respect to such
dividends, whether or not dividends are declared on Series A Preferred Stock for
any subsequent Dividend Period.

     4. Redemption.
        ----------

<PAGE>

     (a) The Company, at its option, may redeem, in whole at any time or in part
from time to time, the Series A Preferred Stock at the time outstanding, upon
notice given as provided in Section 4(c) below, at a redemption price equal to
$1,000 per share of Series A Preferred Stock, together with an amount equal to
any dividends that have been declared but not paid prior to the redemption date
(but with no amount in respect of any dividends that have not been declared
prior to such date). The redemption price for the Series A Preferred Stock shall
be payable on the redemption date to the holder of such shares against surrender
of the certificate(s) evidencing such shares to the Company or its agent. If the
redemption date occurs subsequent to the Dividend Record Date for a Dividend
Period, any declared but unpaid dividends payable on such redemption date shall
not be paid to the holder entitled to receive the redemption price on the
redemption date, but rather shall be paid to the holder of record of the
redeemed shares on such Dividend Record Date relating to the Dividend Payment
Date as provided in Section 3.

     (b) Notice of redemption shall be given to the holders of record of the
Series A Preferred Stock in accordance with Section 13(a) hereof. Such mailing
shall be not less than 30 days and not more than 60 days before the date fixed
for redemption. Notwithstanding the above, in the case of redemption concurrent
with a Conversion in which the holders have elected not to convert the Optional
Election Shares, such notice shall be given not later than the date of the
underwriting agreement with respect to the underwritten public offering giving
rise to such Conversion. Any notice delivered as provided in Section 13(a) shall
be conclusively presumed to have been duly given, whether or not the holder
receives such notice, but failure to duly give such notice, or any defect in
such notice or in the mailing thereof, to any holder of Series A Preferred Stock
designated for redemption shall not affect the validity of the proceedings for
the redemption of any other Series A Preferred Stock. Each such notice given to
a holder shall state: (i) the redemption date; (ii) the number of shares of
Series A Preferred Stock to be redeemed and, if less than all the shares of the
Series A Preferred Stock held by such holder are to be redeemed, the number of
such shares of Series A Preferred Stock to be redeemed from such holder; (iii)
the redemption price; and (iv) the place or places where holders may surrender
certificates evidencing the shares of Series A Preferred Stock for payment of
the redemption price.

     (c) If notice of redemption has been duly given and if on or before the
redemption date specified in the notice all funds necessary for the redemption
have been set aside by the Company for the benefit of the holders of the Series
A Preferred Stock called for the redemption, then on and after the redemption
date dividends shall cease to accrue on such shares of Series A Preferred Stock
so called for redemption, all such shares of Series A Preferred Stock so called
for redemption shall no longer be deemed outstanding and all rights with respect
to such shares of Series A Preferred Stock shall forthwith on such redemption
date cease and terminate, except only the right of the holders thereof to
receive the amount payable on such redemption, without interest.

     (d) In case of any redemption of only part of the Series A Preferred Stock
at the time outstanding, the shares to be redeemed shall be selected either pro
rata or in such other manner as the Board may determine to be fair and
equitable. Subject to the provisions hereof, the Board shall have full power and
authority to prescribe the terms and conditions

<PAGE>

upon which the Series A Preferred Stock shall be redeemed from time to time. In
case fewer than all the shares of Series A Preferred Stock represented by any
certificate are redeemed, a new certificate shall be issued representing the
unredeemed shares without cost to the holder thereof.

     5. Conversion in Connection with a Public Offering.
        -----------------------------------------------

     (a) On the closing date of the Company's first underwritten public offering
of its common stock after October 31, 2006 (other than offers made to employees,
officers or directors of the Company registered on a Form S-8 or offers made to
agents of the Company pursuant to shares registered on a Form S-3 filed with the
United States Securities and Exchange Commission (the "SEC")) (the "Conversion
Date"), 30,000 shares of Series A Preferred Stock will automatically convert
(the "Conversion") into a number of shares of Common Stock per share of Series A
Preferred Stock equal to the liquidation preference amount of a share of Series
A Preferred Stock divided by the offering price of the Common Stock in such
offering or private placement (the "Conversion Price"). The remaining 10,000
shares of Series A Preferred Stock (the "Optional Conversion Shares") shall be
convertible on the Conversion Date at the election of the holders of the shares
of the Series A Preferred Stock. Such Optional Conversion Shares shall be
converted into a number of shares of Common Stock per Optional Conversion Share
based on the Conversion Price as defined above. Notice of such election shall be
delivered to the Company in accordance with the provisions of Section 14(a) not
later than the date on which the preliminary prospectus pertaining to the
underwritten public offering is filed with the SEC.

     (b) The holders of the Series A Preferred Stock to be converted on the
Conversion Date shall have the right to receive, in addition to the number of
shares of Common Stock specified in Section 5(a), an amount in cash equal to any
dividends that have been declared but not paid prior to the Conversion Date (but
with no amount in respect of any dividends that have not been declared prior to
such date), such amount to be paid at the time of the Conversion, to the extent
that the Company has sufficient lawful funds to pay such amount at such time. If
the Conversion Date occurs subsequent to the Dividend Record Date for a Dividend
Period, any declared but unpaid dividends payable on the Conversion Date shall
not be paid to the holder entitled to receive the redemption price on the
Mandatory Conversion Date, but rather shall be paid to the holder of record of
the redeemed shares on such Dividend Record Date relating to the Dividend
Payment Date as provided in Section 3.

     (c) To the extent that the Company does not have sufficient lawful funds to
pay in cash the amount equal to all of such dividends that have been declared
but not paid prior to the Conversion Date, the holders of Series A Preferred
Stock to be converted on the Conversion Date shall be entitled to receive, upon
conversion of such Series A Preferred Stock on the Conversion Date, an
additional number of shares of Common Stock per share of Series A Preferred
Stock equal to the amount of such dividends that have been declared but not paid
prior to the Conversion Date in cash divided by the Conversion Price. Any
resulting fractional shares of Common Stock shall be settled in cash as provided
below, subject to the availability of sufficient lawful funds to make such
settlement.

<PAGE>

     (d) From and after the Conversion Date, all shares of Series A Preferred
Stock that have been converted on such Conversion Date shall no longer be deemed
outstanding and all rights with respect to such shares of Series A Preferred
Stock shall forthwith cease and terminate, except only the right of the holders
thereof to receive the Common Stock and any cash due and owing on conversion of
the Series A Preferred Stock, without interest.

     (e) No fractional shares of Common Stock will be issued to holders of
Series A Preferred Stock as a result of any Conversion of shares of Series A
Preferred Stock pursuant to this Section 5. In lieu of any fractional share of
Common Stock otherwise issuable in respect of any Conversion pursuant to this
Section 5, the Company shall pay an amount in cash (computed to the nearest
cent) equal to the same fraction of the Conversion Price.

     (f) Notwithstanding this Section 5, if the Conversion shall result in the
issuance of shares of common stock of the Company that would require the vote of
the stockholders of the outstanding shares of common stock pursuant to the
listing rules of the Nasdaq Global Select Market, the number of shares of Series
A Preferred Stock to be initially converted into Common Stock shall be limited
to a number that would not require such a vote and the remaining shares of
Series A Preferred Stock shall not be converted until the required stockholder
vote is obtained.

     (g) The issuance of certificates for shares of Common Stock on Conversion
of the Series A Preferred Stock pursuant to this Section 5 shall be made without
charge to the holder of the Series A Preferred Stock for any documentary stamp
or similar taxes that may be payable in respect of the issue or delivery of such
certificate, provided that the Company shall not be required to pay any tax that
may be payable in respect of any transfer involved in the issuance and delivery
of any such certificate upon conversion in a name other than that of the holder
of such shares of Series A Preferred Stock so converted and the Company shall
not be required to issue or deliver such certificates unless or until the person
or persons requesting the issuance thereof shall have paid to the Company the
amount of such tax or shall have established to the satisfaction of the Company
that such tax has been paid.

     6. Conversion Upon Change in Control.
        ---------------------------------

     (a) Immediately prior to the consummation of any Change in Control (as
defined below) that is consummated at a time when CastlePoint Reinsurance
Company, Ltd. or one of its subsidiaries holds any shares of Series A Preferred
Stock, each share of Series A Preferred Stock held by CastlePoint Reinsurance
Company, Ltd. or one of its subsidiaries shall be converted into a number of
shares of Common Stock equal to the liquidation preference amount of a share of
Series A Preferred Stock, determined in accordance with Section 8(a), divided by
the Value of the Consideration (as defined below) per share of Common Stock in
such Change in Control. A "Change in Control" means (i) any merger or
consolidation of the Company with and into another company, other than a merger
or consolidation in which (x) the Company is the surviving entity and (y) the
holders of the Company's Common Stock immediately prior to the consummation of
such merger or consolidation own more than 50% of the voting equity interests of
the surviving entity immediately after the consummation of such merger or
consolidation; (ii) any transaction by which any person or group of persons
(within the meaning of Rule 13d-5 under the Securities Exchange Act of 1934, as
amended, or any successor or replacement rule) acquires beneficial ownership (as
defined in Rule 13d-3 under the Securities Exchange Act of

<PAGE>

1934, as amended, or any successor or replacement rule) of securities of the
Company representing more than 50% of the voting power of the Company holder of
at the time of such Change in Control. The "Value of Consideration" means the
value of any consideration paid per share of Common Stock or value of the
consideration into which a share of Common Stock is converted in a Change in
Control transaction or, if such Change in Control Value does not involve a
merger or consolidation of the Company or the acquisition of shares of Common
Stock, the equivalent value placed upon a share of Common Stock in such
transaction; provided, that (i) in the case of any publicly traded securities
payable per share of Common Stock or into which a share of Common Stock shall be
converted, the value of such securities shall be the last price at which such
securities are traded on a public market immediately prior to the closing of the
Change in Control and (ii) in the case of any securities that are not publicly
traded or any other property payable per share of Common Stock or into which a
share of Common Stock shall be converted, the value of such securities shall be
fixed in good faith by the Board.

     (b) The holders of the Series A Preferred Stock to be converted in
connection with a Change in Control shall have the right to receive, in addition
to the number of shares of Common Stock specified in Section 6(a), an amount in
cash equal to any dividends that have been declared but not paid prior to the
consummation of such Change in Control (but with no amount in respect of any
dividends that have not been declared prior to such date), such amount to be
paid at the time of the consummation of such Change in Control, to the extent
that the Company has sufficient lawful funds to pay such amount at such time. If
the consummation of such Change in Control occurs subsequent to the Dividend
Record Date for a Dividend Period, any declared but unpaid dividends payable
upon the consummation of such Change in Control shall not be paid to the holder
entitled to receive the redemption price on the date of the consummation of such
Change in Control, but rather shall be paid to the holder of record of the
redeemed shares on such Dividend Record Date relating to the Dividend Payment
Date as provided in Section 3.

     (c) To the extent that the Company does not have sufficient lawful funds to
pay in cash the amount equal to all of such dividends that have been declared
but not paid prior to the consummation of a Change in Control, the holders of
Series A Preferred Stock to be converted in connection with a Change in Control
shall be entitled to receive, upon conversion of such Series A Preferred Stock
upon the consummation of such Change in Control, an additional number of shares
of Common Stock per share of Series A Preferred Stock equal to the amount of
such dividends that have been declared but not paid prior to the consummation of
such Change in Control in cash divided by the Value of Consideration. Any
resulting fractional shares of Common Stock shall be settled in cash as provided
below, subject to the availability of sufficient lawful funds to make such
settlement.

     (d) From and after the consummation of a Change in Control, all shares of
Series A Preferred Stock that have been converted in connection with such Change
in Control shall no longer be deemed outstanding and all rights with respect to
such shares of Series A Preferred Stock shall forthwith cease and terminate,
except only the right of the holders thereof to receive the Common Stock and any
cash due and owing on conversion of the Series A Preferred Stock, without
interest.

     (e) No fractional shares of Common Stock will be issued to holders of
Series A Preferred Stock as a result of any Conversion of shares of Series A
Preferred Stock pursuant to this

<PAGE>

Section 6. In lieu of any fractional share of Common Stock otherwise issuable in
respect of any conversion pursuant to this Section 6, the Company shall pay an
amount in cash (computed to the nearest cent) equal to the same fraction of the
Value of Conversion.

     (f) The issuance of certificates for shares of Common Stock on conversion
of the Series A Preferred Stock pursuant to this Section 6 shall be made without
charge to the holder of the Series A Preferred Stock for any documentary stamp
or similar taxes that may be payable in respect of the issue or delivery of such
certificate, provided that the Company shall not be required to pay any tax that
may be payable in respect of any transfer involved in the issuance and delivery
of any such certificate upon conversion in a name other than that of the holder
of such shares of Series A Preferred Stock so converted and the Company shall
not be required to issue or deliver such certificates unless or until the person
or persons requesting the issuance thereof shall have paid to the Company the
amount of such tax or shall have established to the satisfaction of the Company
that such tax has been paid.

     7. Conversion Upon Regulatory Change.
        ---------------------------------

     If both (a) and (b) below occur:

     (a) after the date of the issuance of the Series A Preferred Stock, the
criteria used by A.M. Best Company, Inc. for determining whether and to what
extent a security qualifies as permanent equity capital shall change such that
the Series A Preferred Stock no longer qualifies for treatment as favorable as
the treatment afforded to the Series A Preferred Stock on its date of issuance,
and

     (b) the Company affirmatively elects to qualify the Series A Preferred
Stock for treatment as permanent equity capital by A.M. Best Company, Inc.
without any sublimit or other quantitative restriction on the inclusion of the
Series A Preferred Stock in permanent equity capital (other than any limitation
the Company elects to accept and any limitation requiring that common equity or
a specified form of common equity constitute the dominant form of permanent
equity capital) under such criteria,

then, upon such affirmative election, the Series A Preferred Stock shall be
convertible at the Company's option into a new series of preferred stock having
terms and provisions substantially identical to those of the Series A Preferred
Stock, except that such new series may have such additional or modified rights,
preferences, privileges and voting powers, and limitations and restrictions
thereof, as are necessary in the judgment of the Board (after consultation with
legal counsel of recognized standing) to comply with the Required Equity Capital
Provisions (as defined below), provided that the Company will not cause any such
conversion unless the Board determines that the rights, preferences, privileges
and voting powers, and the qualifications, limitations and restrictions thereof,
of such new series of preferred stock, taken as a whole, are not materially less
favorable to the holders thereof than the rights, preferences, privileges and
voting powers, and the qualifications, limitations and restrictions thereof, of
the Series A Preferred Stock, taken as a whole.

     As used above, the term "Required Equity Capital Provisions" means such
terms and provisions as are, in the judgment of the Company (after consultation
with legal counsel of

<PAGE>

recognized standing), required for preferred stock to qualify for equity capital
treatment by A.M. Best Company, Inc. that is as favorable as the treatment
afforded to the Series A Preferred Stock on its date of issuance, without any
sublimit or other quantitative restriction on the inclusion of such preferred
stock in permanent equity capital (other than any limitation the Company elects
to accept and any limitation requiring that common equity or a specified form of
common equity constitute the dominant form of permanent equity capital) pursuant
to the applicable criteria used by A.M. Best Company, Inc.

     8. Liquidation Rights.
        ------------------

     (a) Upon the voluntary or involuntary dissolution, liquidation or winding
up of the Company, the holders of the Series A Preferred Stock shall be entitled
to receive and to be paid out of the assets of the Company available for
distribution to its stockholders, before any payment or distribution shall be
made on the Common Stock or on any other Junior Stock the liquidation preference
of $1,000 per share of Series A Preferred Stock, plus any declared and unpaid
dividends for the then-current Dividend Period, without accumulation of any
undeclared dividends.

     (b) If in any distribution described in Section 5(a) above the assets of
the Company or proceeds thereof are not sufficient to pay the Liquidation
Preferences (as defined below) in full to all holders of the Series A Preferred
Stock and all holders of any Parity Stock, the amounts paid to the holders of
the Series A Preferred Stock and to the holders of all such other Parity Stock
shall be paid pro rata in accordance with the respective aggregate Liquidation
Preferences of the holders of the Series A Preferred Stock and the holders of
all such other Parity Stock. In any such distribution, the "Liquidation
Preference" of any holder of Series A Preferred Stock or Parity Stock shall mean
the amount otherwise payable to such holder in such distribution, including any
declared but unpaid dividends (and, in the case of any holder of shares other
than Series A Preferred Stock and on which dividends accrue on a cumulative
basis, an amount equal to any unpaid, accrued cumulative dividends, whether or
not declared, as applicable).

     (c) If the Liquidation Preference has been paid in full to all holders of
the Series A Preferred Stock, the holders of other shares of the Company shall
be entitled to receive all remaining assets of the Company according to their
respective rights and preferences and the holders of the Series A Preferred
Stock as such shall have no right or claim to any of the remaining assets of the
Company.

     (d) Neither the sale, lease, exchange, transfer or conveyance of all or
substantially all of the assets of the Company for cash, securities or other
property, nor the merger or consolidation of the Company into or with any other
corporation or the merger or consolidation of any other corporation into or with
the Company, shall be deemed to be a dissolution, liquidation or winding up,
voluntary or involuntary, for the purposes of this Section 8.

<PAGE>

     9. Ranking.
        -------

     The Series A Preferred Stock shall rank, with respect to the payment of
dividends and distributions prior to or upon the liquidation, dissolution or
winding up of the Company:

                    (i) senior to all Common Stock outstanding and other Junior
          Stock, and each other series of Junior Stock that the Company may
          later issue;

                    (ii) equally with Parity Stock and each other series of
          Parity Stock that the Company may later issue; and

                    (iii) junior to any series of senior shares that the Company
          may later issue, subject to compliance with Section 11(b).

     10. Voting and Certain Other Rights.
         -------------------------------

     (a) Except as set forth herein or required by applicable law, holders of
Series A Preferred Stock shall have no voting rights.

     (b) Whenever dividends on any Series A Preferred Stock shall have not been
declared and paid for the equivalent of six or more dividend payments, whether
or not for consecutive Dividend Periods (a "Nonpayment"), the holders of such
Series A Preferred Stock, voting together as a single class with holders of any
and all other series of Voting Preferred Stock then outstanding, will be
entitled to vote for the election of a total of one additional member to the
Board (the "Preferred Stock Director"), provided that the election of any such
director shall not cause the Company to violate the corporate governance
requirement of the Nasdaq Global Select Market (or any other exchange on which
the securities of the Company may be listed) that listed companies must have a
majority of independent directors. The Preferred Stock Director shall be elected
by simple majority at a special meeting called at the request of the holders of
record of at least 20% of the shares of Series A Preferred Stock or of any other
series of Voting Preferred Stock then outstanding (unless such request for a
special meeting is received less than 90 days before the date fixed for the next
annual meeting or special meeting of the stockholders of the Company, in which
event such election shall be held only at such next annual or special meeting of
stockholders), and at each subsequent annual meeting of stockholders of the
Company. For this purpose, the Board shall reserve one vacant place on the Board
of the Company to accommodate such election and pass such resolutions as are
necessary to give effect to such election.

     (c) If the holders of the Series A Preferred Stock become entitled to elect
a director to the Board, the Company shall promptly give notice to all holders
and take all action necessary, including calling a meeting or circulating a
consent to permit the nomination and election of such director. Applicable
provisions of the Company's Certificate of Incorporation shall be applicable to
the holders of Series A Preferred Stock and any other Voting Preferred Stock as
a class, provided that any written consents approved by the holders of record of
a majority of the Series A Preferred Stock and any other Voting Preferred Stock
outstanding shall be effective and shall bind all holders of Series A Preferred
Stock. If and when dividends for at least four Dividend Periods, whether or not
consecutive, following a Nonpayment have been paid in full

<PAGE>

(or declared and a sum sufficient for such payment has been set aside), then the
right of the holders of the Series A Preferred Stock to elect the Preferred
Stock Director shall cease (but subject to revesting of such voting rights in
the event of any future Nonpayment pursuant to this Section 10) and the number
of Dividend Periods in which dividends have not been declared and paid shall be
reset to zero and, if and when any rights of holders of the Series A Preferred
Stock to elect the Preferred Stock Director shall have ceased, the terms of
office of the Preferred Stock Director shall terminate forthwith and the number
of directors constituting the Board shall automatically be reduced by one.

     (d) The Preferred Stock Director may be removed at any time without cause
by the holders of record of a majority of the outstanding Series A Preferred
Stock and any other shares of Voting Preferred Stock, when they have the voting
rights described above (voting together as a single class). So long as a
Nonpayment shall continue, any vacancy in the office of the Preferred Stock
Director (other than prior to the initial election of a Preferred Stock Director
after a Nonpayment) may be filled by a vote of the holders of record of a
majority of the shares of Series A Preferred Stock outstanding and any other
Voting Preferred Stock then outstanding (voting together as a single class),
when they have the voting rights described above. The Preferred Stock Director
shall be entitled to one vote on any matter.

     (e) Holders of the Series A Preferred Stock shall be entitled to vote on
matters as described in Section 11.

     11. Modification.
         ------------

     (a) With the Consent of Holders. Except as provided below in this Section
11(a), this Certificate of Designations may be amended, modified or
supplemented, and noncompliance in any particular instance with any provision of
this Certificate of Designations or the Series A Preferred Stock may be waived,
in each case with the written consent or affirmative vote of the holders of at
least two-thirds of the shares of Series A Preferred Stock at the time
outstanding, including any modification occurring in connection with any merger
or consolidation of the Company or otherwise.

     Subject to Sections 6 and 7, without the written consent or the affirmative
vote or consent of the holders of at least two-thirds of the outstanding shares
of Series A Preferred Stock, given in person or by proxy, either in writing or
at a meeting, an amendment or waiver under this Section 11(a) may not:

                  amend, alter or repeal the provisions of the Company's
         Certificate of Incorporation, By-Laws or this Certificate of
         Designations so as to materially and adversely affect the special
         rights, preferences, privileges and voting powers of the Series A
         Preferred Stock, taken as a whole; or

                  consummate a binding share exchange or reclassification
         involving the Series A Preferred Stock or a merger or consolidation of
         the Company with another entity, unless in each case the Series A
         Preferred Stock (x) remains outstanding or (y) in the case of any such
         merger or consolidation with respect to which the Company is not the
         surviving or

<PAGE>

          resulting entity, is converted into or exchanged for preference
          securities of the surviving or resulting entity or its ultimate parent
          having such rights, preferences, privileges and voting powers, taken
          as a whole, as are not materially less favorable to the holders
          thereof than the rights, preferences, privileges and voting powers of
          the Series A Preferred Stock, taken as a whole;

provided, however, that for all purposes of this Section 11(a), any increase in
the amount of the authorized or issued Series A Preferred Stock, or the creation
and issuance, or an increase in the authorized or issued amount, of any other
series of preferred stock ranking equally with and/or junior to the Series A
Preferred Stock with respect to the payment of dividends (whether such dividends
are cumulative or non-cumulative) and/or the distribution of assets upon
liquidation, dissolution or winding up of the Company will not be deemed to
adversely affect the special rights, preferences, privileges or voting powers of
the Series A Preferred Stock.

     (b) Changes after Provision for Redemption. No vote or consent of the
holders of the Series A Preferred Stock shall be required pursuant to Sections
10(b) and 11(a) above if, at or prior to the time when any such vote or consent
would otherwise be required pursuant to such Section, all outstanding Series A
Preferred Stock shall have been redeemed, or called for redemption upon proper
notice and sufficient funds shall have been set aside by the Company for the
benefit of holders of such Series A Preferred Stock called for redemption, in
each case pursuant to Section 4 above.

     12. Currency of Payments.
         --------------------

     Any cash payments with respect to the Series A Preferred Stock shall be
paid in United States dollars in immediately available funds.

     13. No Preemptive Rights.
         --------------------

     No holder of Series A Preferred Stock shall have any preemptive right as to
any additional issue of shares of capital stock of the Company, or to any
security convertible, exercisable or exchangeable into such shares.

     14. Miscellaneous.
         -------------

     (a) Notices. Any and all notices or other communications or deliveries to
be provided by the holders hereunder shall be in writing and delivered
personally, by facsimile, sent by a nationally recognized overnight courier
service, addressed to the Company, at 120 Broadway, 31st Floor, New York, New
York 10271, facsimile number (646) 514-8612, Attn: General Counsel, or such
other address or facsimile number as the Company may specify for such purposes
by notice to the holders delivered in accordance with this Section. Any and all
notices or other communications or deliveries to be provided by the Company
hereunder shall be in writing and delivered personally, by facsimile, sent by a
nationally recognized overnight courier service addressed to each holder of
record of the Series A Preferred Stock at the facsimile telephone number or
address of such holder of record at their respective last addresses or facsimile
telephone number appearing on the share register of the Company, or if no such
facsimile telephone number or address appears, at the principal place of
business of the holder.

<PAGE>

 Any notice or other communication or deliveries
hereunder shall be deemed given and effective on the earliest of (i) the date of
transmission, if such notice or communication is delivered via facsimile at the
facsimile telephone number specified in this Section prior to 5:30 p.m. (New
York City time), (ii) the date after the date of transmission, if such notice or
communication is delivered via facsimile at the facsimile telephone number
specified in this Section later than 5:30 p.m. (New York City time) on any date
and earlier than 11:59 p.m. (New York City time) on such date, (iii) the second
Business Day following the date of mailing, if sent by nationally recognized
overnight courier service, or (iv) upon actual receipt by the party to whom such
notice is required to be given.

     (b) Lost or Mutilated Preferred Stock Certificate. If a holder's Series A
Preferred Stock certificate shall be mutilated, lost, stolen or destroyed, the
Company shall execute and deliver, in exchange and substitution for and upon
cancellation of a mutilated certificate, or in lieu of or in substitution for a
lost, stolen or destroyed certificate, a new certificate for the shares of
Series A Preferred Stock so mutilated, lost, stolen or destroyed but only upon
receipt of evidence of such loss, theft or destruction of such certificate, and
of the ownership hereof, and indemnity, if requested, all reasonably
satisfactory to the Company.

     (c) Waiver. Any waiver by the Company or the holder of a breach of any
provision of this Certificate of Designations shall not operate as or be
construed to be a waiver of any other breach of such provision or of any breach
of any other provision of this Certificate of Designations. The failure of the
Company or the holder to insist upon strict adherence to any term of this
Certificate of Designations on one or more occasions shall not be considered a
waiver or deprive that party of the right thereafter to insist upon strict
adherence to that term or any other term of this Certificate of Designations.
Any waiver must be in writing.

     (d) Status of Converted or Redeemed Preferred Stock. In case any shares of
Series A Preferred Stock shall be converted, redeemed or reacquired by the
Company, such shares shall resume the status of authorized but unissued shares
of preferred stock and shall no longer be designated as Series A Preferred
Stock.

     (e) Other Rights. Except as provided in Sections 5, 6 and 7, the Series A
Preferred Stock will not be convertible into, or exchangeable for, any other
class or series of securities of the Company, and holders of the Series A
Preferred Stock will have no subscription rights to acquire additional shares of
the Company. Holders of the Series A Preferred Stock shall have no right to
require the redemption or repurchase of the Series A Preferred Stock.

                     [Signature appears on subsequent page.]

<PAGE>

          IN WITNESS WHEREOF, I have affixed my signature hereto this ?th day of
[November], 2006.

                                            TOWER GROUP, INC.

                                            By:__________________________
                                                  Corporate Secretary

<PAGE>

                                                                 Execution Copy

                                    Exhibit B

                          REGISTRATION RIGHTS AGREEMENT
                          -----------------------------

          THIS REGISTRATION RIGHTS AGREEMENT (this "Agreement") is made and
entered into as of o, 2006 by and between CASTLEPOINT REINSURANCE COMPANY, LTD.,
a Bermuda company (the "Investor"), and TOWER GROUP, INC., a Delaware
corporation (the "Company").

                                    RECITALS
                                    --------

          1. WHEREAS, the Investor and the Company have entered into a Stock
Purchase Agreement, dated November 14, 2006 (the "Purchase Agreement"), pursuant
to which the Investor has agreed to purchase from the Company, and the Company
has agreed to sell to the Investor, 40,000 shares of the Company's Series A
Preferred Stock, par value $0.01 per share (the "Preferred Stock");

          2. WHEREAS, the Preferred Stock is convertible into shares (the
"Conversion Shares") of common stock, par value $0.01 per share, of the Company
(the "Common Stock"), as set forth in the Certificate of Designations of the
Preferred Stock (the "Certificate of Designations"); and

          3. WHEREAS, in consideration of the Investor's entry into the Purchase
Agreement, the Company has agreed to execute and deliver to the Investor this
Agreement;

                                    AGREEMENT
                                    ---------

          4. NOW, THEREFORE, in consideration of the foregoing, and for other
good and valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, the parties hereto hereby agree as follows:

          DEFINITIONS. (B) IN ADDITION TO THE TERMS DEFINED ELSEWHERE IN THIS
AGREEMENT, AS USED IN THIS AGREEMENT, THE FOLLOWING TERMS SHALL HAVE THE
MEANINGS SET FORTH BELOW:

                     "Affiliate" of any specified Person means any other Person
         who directly, or indirectly through one or more intermediaries, is in
         control of, is controlled by, or is under common control with, such
         specified Person. For purposes of this definition, control of a Person
         means the power, directly or indirectly, to direct or cause the
         direction of the management and policies of such Person whether by
         contract, securities ownership or otherwise; and the terms
         "controlling" and "controlled" have the respective meanings correlative
         to the foregoing.

                                       1
<PAGE>

                     "Agreement" means this Registration Rights Agreement, as
         the same may be amended, supplemented or modified from time to time in
         accordance with the terms hereof.

                     "Closing Date" means December 4, 2006, or such other time
         or such other date as the Company and the Investor may agree.

                     "Commission" means the Securities and Exchange Commission.

                     "Exchange Act" means the Securities Exchange Act of 1934,
         as amended, and the rules and regulations of the Commission thereunder,
         or any similar successor statute.

                     "Free Writing Prospectus" means a free writing prospectus
         (as such term is defined in Rule 405 under the Securities Act) relating
         to Registrable Securities.

                     "Investor" means the Investor and any permitted transferee
         or assignee of Registrable Securities who agrees to become bound by all
         of the terms and provisions of this Agreement.

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

                     "Prospectus" means the prospectus (including any
         preliminary prospectus and/or any final prospectus filed pursuant to
         Rule 424(b) under the Securities Act and any prospectus that discloses
         information previously omitted from a prospectus filed as part of an
         effective registration statement in reliance on Rule 430A, Rule 430B or
         Rule 430C under the Securities Act) included in a Registration
         Statement, as amended or supplemented by any prospectus supplement or
         any Issuer Free Writing Prospectus (as defined in Rule 433(h) under the
         Securities Act) with respect to the terms of the offering or any
         portion of the Registrable Securities covered by such Registration
         Statement and by all other amendments and supplements to such
         prospectus, including all material incorporated by reference in such
         prospectus and all documents filed after the date of such prospectus by
         the Company under the Exchange Act and incorporated by reference
         therein.

                     "Public Offering" means an offer registered with the
         Commission and the appropriate state securities commissions by the
         Company of its Common Stock and made pursuant to the Securities Act.

                     "Registrable Securities" means (i) the Conversion Shares
         and (ii) any shares or other securities issued in respect of such
         Registrable Securities by reason of or in connection with any share
         dividend, share distribution, share split, purchase in any rights
         offering or in connection with any exchange for or replacement of such
         Registrable Securities or any combination of shares, recapitalization,
         amalgamation, merger or consolidation, any other equity securities
         issued in respect of Registrable Securities pursuant to any other pro
         rata distribution with respect to the Common Stock; provided,

                                       2
<PAGE>

          however, that a Conversion Share shall cease to be a Registrable
          Security for purposes of this Agreement when it no longer is a
          Restricted Security.

                     "Registration Expenses" means any and all expenses incident
         to the performance of or compliance with this Agreement, including,
         without limitation: (i) all Commission, securities exchange, NASD
         registration, listing, inclusion and filing fees, (ii) all fees and
         expenses incurred in connection with compliance with international,
         federal or state securities or blue sky laws (including, without
         limitation, any registration, listing and filing fees and reasonable
         fees and disbursements of counsel in connection with blue sky
         qualification of any of the Registrable Securities and the preparation
         of a blue sky memorandum and compliance with the rules of the NASD),
         (iii) all expenses in preparing or assisting in preparing, word
         processing, duplicating, printing, delivering and distributing any
         Registration Statement, any Prospectus, any amendments or supplements
         thereto, any underwriting agreements, securities sales agreements,
         certificates and any other documents relating to the performance under
         and compliance with this Agreement, (iv) all fees and expenses incurred
         in connection with the listing or inclusion of any of the Registrable
         Securities on any securities exchange pursuant to Section 3(h) of this
         Agreement, (v) the fees and disbursements of counsel for the Company
         and of the independent public accountants of the Company (including,
         without limitation, the expenses of any special audit and "cold
         comfort" letters required by or incident to such performance), and (vi)
         any fees and disbursements customarily paid in issues and sales of
         securities (including the fees and expenses of any experts retained by
         the Company in connection with any Registration Statement); provided,
         however, that Registration Expenses shall exclude brokers' or
         underwriters' discounts and commissions, if any, relating to the sale
         or disposition of Registrable Securities by the Investor.

                     "Registration Statement" means any registration statement
         of the Company, which covers any of the Registrable Securities pursuant
         to the provisions of this Agreement, including the Prospectus,
         amendments and supplements to such registration statement or
         Prospectus, including pre- and post-effective amendments, all exhibits
         thereto, and all material incorporated by reference or deemed to be
         incorporated by reference, if any, in such registration statement.

                     "Restricted Security" means any Conversion Share except any
         that (i) has been registered pursuant to an effective registration
         statement under the Securities Act and sold in a manner contemplated by
         the prospectus included in such registration statement, (ii) has been
         transferred by the Investor in compliance with the resale provisions of
         Rule 144 under the Securities Act (or any successor provision thereto)
         or is transferable by the Investor pursuant to paragraph (k) of Rule
         144 under the Securities Act (or any successor provision thereto), or
         (iii) otherwise has been transferred by the Investor and a new
         certificate representing a share of Common Stock not subject to
         transfer restrictions under the Securities Act has been delivered by or
         on behalf of the Company.

                     "Securities Act" means the Securities Act of 1933, as
         amended, and the rules and regulations of the Commission thereunder, or
         any similar successor statute.

                                       3
<PAGE>

                     "Underwritten Offering" means a sale of securities of the
         Company to an underwriter or underwriters for reoffering to the public.

                  REGISTRATION.  (C)  DEMAND REGISTRATION RIGHTS.

                     At any time after the six-month anniversary of the date on
         which the Investor purchases the Preferred Stock, upon the receipt by
         the Company of the written request of the Investor, and in no event
         later than 60 days after the receipt of such request (but subject to
         any applicable Blackout Periods), the Company shall prepare and file
         with the Commission (the "Filing Deadline") a Registration Statement
         under the Securities Act on Form S-3 (or such other form as may be
         available for use by the Company) relating to the offer and sale of the
         Registrable Securities by the Investor and will promptly take all
         actions that are necessary or advisable in connection with such
         registration, including without limitation, providing written responses
         to any comments made by the Commission regarding such registration
         statement and filing any necessary pre-effective amendments and all
         necessary exhibits thereto, and will use its commercially reasonable
         efforts to cause such Registration Statement to be declared effective
         by the Commission as soon as possible after the initial filing thereof.
         The Company will, subject to any applicable Blackout Periods, use its
         commercially reasonable efforts to keep such Registration Statement
         effective for the period beginning on the date such Registration
         Statement becomes effective (the "Effectiveness Date") and terminating
         on the earlier of (x) two years from the Effectiveness Date and (y) the
         date upon which all Registrable Securities then held by the Investor
         either (i) may be resold without restriction of any kind and without
         need for such Registration Statement to be effective or (ii) have been
         disposed of pursuant to transactions contemplated by the Registration
         Statement. The Company's obligation to file a Registration Statement
         under this Section 2(a) shall terminate on the date upon which all
         Registrable Securities then held by the Investor either (i) may be
         resold without restriction of any kind and without need for a
         Registration Statement to be effective or (ii) have been disposed of
         pursuant to transactions contemplated by the Registration Statement.

                     If a registration pursuant to this Section 2(a) involves a
         Public Offering that is an Underwritten Offering, the Company and each
         other selling security holder participating in such Public Offering
         shall agree to sell any shares of Common Stock to be sold by them to
         the underwriters on the same terms as apply to the shares of Common
         Stock to be sold by the Investor. If the managing underwriter thereof
         advises the Company and the Investor that, in its view, the number of
         shares of Common Stock that the Company and the Investor and other
         selling security holders (if any) intend to include in such
         registration exceeds the largest number of shares of Common Stock that
         can be sold without having an adverse effect on such Public Offering,
         including with respect to the price at which such shares can be sold
         (the "Maximum Offering Size"), the Company will include in such
         registration only that number of shares of Common Stock which does not
         exceed the Maximum Offering Size, in the following order of priorities:
         (1) first, all Registrable Securities of the Investor and (2) second,
         the securities proposed to be registered by the Company and by other
         holders of securities entitled to participate in

                                       4
<PAGE>

          the registration, drawn from them pro-rata based on the number of
          shares each has requested to be included in such registration.

                     The Company shall be required to register the Registrable
         Securities not more than two (2) times pursuant to this Section 2(a).

                     At any time before a Registration Statement requested by
         the Investor pursuant to this Section 2(a) has become effective, the
         Investor may withdraw its request by written notice to the Company and
         upon receipt of such notice the Company shall, at its option, either
         withdraw the Registration Statement (if any) that it previously filed
         in connection with such request or amend such Registration Statement to
         remove any Registrable Securities included therein at the Investor's
         request and in either case shall be relieved of all obligations under
         this Section 2(a) with respect to such request; provided that if the
         Investor reimburses the Company for all of the Company's costs and
         expenses incurred in complying with such request through the time the
         Company receives notice of the Investor's withdrawal of such request,
         such request shall not count as a request to register Registrable
         Securities for purposes of Section 2(a)(iii).

                  Piggyback Registration Rights. (i) If the Company proposes to
         register any of its Common Stock under the Securities Act (other than a
         registration on Form S-8 or S-4 or any successor or similar forms),
         whether or not for sale for its own account, it will at such time, give
         prompt written notice at least 20 calendar days prior to the
         anticipated filing date of the registration statement relating to such
         registration to the Investor, which notice shall set forth such
         Investor's rights under this Section 2(b) and shall offer the Investor
         the opportunity to include in such registration statement such number
         of Registrable Securities as the Investor may request. Upon the written
         request of the Investor made within 15 calendar days of the notice from
         the Company (which request shall specify the number of Registrable
         Securities such Investor seeks to register), the Company will use
         commercially reasonable efforts to effect the registration under the
         Securities Act of all Registrable Securities that the Company has been
         so requested to register by the Investor, to the extent requisite to
         permit the disposition of the Registrable Securities to be so
         registered; provided, however, that (A) if such registration involves
         an underwritten Public Offering, the Investor must sell its Registrable
         Securities to the underwriters on the same terms and conditions as
         apply to the Company or other selling security holders, (B) if such
         registration does not involve an underwritten Public Offering, the
         Investor must sell its Registrable Securities in accordance with the
         plan of distribution set forth on Exhibit A and (C) if, at any time
         after giving written notice of its intention to register any
         Registrable Securities pursuant to this Section 2(b) and prior to the
         effective date of the Registration Statement filed in connection with
         such registration, the Company shall determine for any reason not to
         register such Registrable Securities, the Company shall give written
         notice to the Investor and, thereupon, shall be relieved of its
         obligation to register any Registrable Securities in connection with
         such registration.

                                       5
<PAGE>

                     If a registration pursuant to this Section 2(b) involves an
         Underwritten Offering and the managing underwriter thereof advises the
         Company that, in its view, the number of shares of Common Stock that
         the Company and the Investor and other selling security holders (if
         any) intend to include in such registration exceeds the Maximum
         Offering Size, the Company will include in such registration only that
         number of shares of Common Stock which does not exceed the Maximum
         Offering Size, in the following order of priorities: (A) if such
         registration of the Common Stock is initiated by the Company for its
         own account, (1) first, all securities the Company proposes to sell for
         its own account and (2) second, the securities requested to be
         registered by other holders of securities entitled to participate in
         the registration (including Registrable Securities of the Investor),
         drawn from them pro-rata based on the number of shares each has
         requested to be included in such registration; and (B) if such
         registration of the Common Stock is initiated at the request of a
         selling stockholder, (1) first, all securities of such selling
         stockholder that the selling stockholder proposes to sell for its
         account and (2) second, the securities to be registered by the Company
         and those requested to be registered by other holders of securities
         entitled to participate in the registration (including Registrable
         Securities of the Investor), drawn from them pro-rata based on the
         number of shares each has requested to be included in such
         registration.

                     If as a result of the proration provisions of this Section
         2(b), the Investor is not entitled to include all such Registrable
         Securities in such registration, the Investor may elect to withdraw its
         request to include any Registrable Securities in such registration.

                     If the Investor decides not to include all of its
         Registrable Securities in any Registration Statement thereafter filed
         by the Company but before the Registration Statement becomes effective,
         the Investor shall nevertheless continue to have the right under this
         Section 2(b) to include any Registrable Securities then held by it in
         any subsequent Registration Statement as may be filed by the Company
         with respect to offerings of its Common Stock.

                     Notwithstanding the foregoing, the Company shall have no
         obligations under this Section 2(b) hereof at any time that the
         Registrable Securities that the Investor seeks to include in a
         Registration Statement are the subject of an effective registration
         statement.

                  Blackout Period.
                  ---------------

                     Subject to the provisions of this Section 2(c) and a good
         faith determination by a majority of the independent members of the
         Board of Directors of the Company that it is in the best interests of
         the Company to suspend the use of the Registration Statement, prior to
         the filing of a Registration Statement or following the effectiveness
         of a Registration Statement (and the filings with any international,
         federal or state securities commissions), the Company, by written
         notice to managing underwriter (if any) and the Investor, may suspend
         its obligation to file the Registration Statement with the Commission
         or direct the Investor to suspend sales of the Registrable Securities
         pursuant to a Registration Statement, as the case may be, for such
         times as the Company

                                       6
<PAGE>

          reasonably may determine is necessary and advisable (but in no event
          for more than (x) an aggregate of ninety (90) days in any rolling
          twelve (12)- month period commencing on the Closing Date or (y) more
          than sixty (60) days in any rolling ninety (90)-day period), if any of
          the following events shall occur: (1) the representative of the
          underwriters of an Underwritten Offering of primary shares by the
          Company has advised the Company that the sale of Registrable
          Securities pursuant to the Registration Statement would have a
          material adverse effect on the Company's primary offering; (2) the
          majority of the independent members of the Board of Directors of the
          Company shall have determined in good faith that (A) the offer or sale
          of any Registrable Securities would materially impede, delay or
          interfere with any proposed financing, offer or sale of securities,
          acquisition, amalgamation, merger, tender offer, business combination,
          corporate reorganization or other significant transaction involving
          the Company or (B) after obtaining the advice of counsel, the sale of
          Registrable Securities pursuant to the Registration Statement would
          require disclosure of non-public material information not otherwise
          required to be disclosed under applicable law, and (C) (x) the Company
          has a bona fide business purpose for preserving the confidentiality of
          the proposed transaction, (y) disclosure would have a material adverse
          effect on the Company or the Company's ability to consummate the
          proposed transaction, or (z) the proposed transaction renders the
          Company unable to comply with Commission requirements, in each case
          under circumstances that would make it impractical or inadvisable to
          cause the Registration Statement (or such filings) to become effective
          or to promptly amend or supplement the Registration Statement on a
          post-effective basis, as applicable; or (3) the majority of the
          independent members of the Board of Directors of the Company shall
          have determined in good faith, after obtaining the advice of counsel,
          that the Company is required by law, rule or regulation or that it is
          in the best interests of the Company to supplement the Registration
          Statement or file a post-effective amendment to the Registration
          Statement in order to incorporate information into the Registration
          Statement for the purpose of (A) including in the Registration
          Statement any prospectus required under Section 10(a)(3) of the
          Securities Act; (B) reflecting in the prospectus included in the
          Registration Statement any facts or events arising after the effective
          date of the Registration Statement (or of the most recent
          post-effective amendment) that, individually or in the aggregate,
          represent a fundamental change in the information set forth therein;
          or (C) including in the prospectus included in the Registration
          Statement any material information with respect to the plan of
          distribution not disclosed in the Registration Statement or any
          material change to such information. Any period in which the Company's
          obligation to file the Registration Statement or the use of the
          Registration Statement has been suspended in accordance with this
          Section 2(c) is sometimes referred to herein as a "Blackout Period."
          Upon the occurrence of any such suspension, the Company shall use its
          commercially reasonable best efforts to file the Registration
          Statement, to cause the Registration Statement to become effective or
          to promptly amend or supplement the Registration Statement on a
          post-effective basis or to take such action as is necessary to make
          resumed use of the Registration Statement compatible with the
          Company's best interests, as applicable, so as to permit the Investor
          to resume sales of the Registrable Securities as soon as possible.

                                       7
<PAGE>

                     In the case of an event that causes the Company to suspend
         the use of a Registration Statement (a "Suspension Event"), the Company
         shall give written notice (a "Suspension Notice") to the managing
         underwriter (if any) and the Investor to suspend sales of the
         Registrable Securities and such notice shall state generally the basis
         for the notice and that such suspension shall continue only for so long
         as the Suspension Event or its effect is continuing (but in no event
         longer than the periods specified in Section 2(c)(i)) and the Company
         is using its commercially reasonable best efforts and taking all
         reasonable steps to file the Registration Statement or to terminate
         suspension of the use of the Registration Statement as promptly as
         possible. The Investor shall not effect any sales of the Registrable
         Securities pursuant to such Registration Statement (or such filings) at
         any time after it has received a Suspension Notice from the Company and
         prior to receipt of an End of Suspension Notice (as defined below). If
         so directed by the Company, the Investor will deliver to the Company
         (at the expense of the Company) all copies (other than permanent file
         copies) then in the Investor's possession of the Prospectus covering
         the Registrable Securities at the time of receipt of the Suspension
         Notice. The Investor may recommence effecting sales of the Registrable
         Securities pursuant to the Registration Statement (or such filings)
         following further notice to such effect (an "End of Suspension Notice")
         from the Company, which End of Suspension Notice shall be given by the
         Company to the Investor and the managing underwriter in the manner
         described above promptly following the conclusion of any Suspension
         Event and its effect.

                     Notwithstanding any provision herein to the contrary, if
         the Company shall give a Suspension Notice pursuant to this Section 2,
         the Company agrees that it shall extend the period of time during which
         the applicable Registration Statement shall be maintained effective
         pursuant to this Agreement by the number of days during the period from
         the date of receipt by the Investor of the Suspension Notice to and
         including the date of receipt by the Investor of the End of Suspension
         Notice and copies of the supplemented or amended Prospectus necessary
         to resume sales.

          OBLIGATIONS OF THE COMPANY. IN CONNECTION WITH THE REGISTRATION OF THE
REGISTRABLE SECURITIES, THE COMPANY SHALL USE COMMERCIALLY REASONABLE EFFORTS
TO:

          (i) Prepare and file with the Commission a Registration Statement,
within the relevant time period specified in Section 2, on the appropriate form
under the Securities Act (as shall be selected by the Company), which
Registration Statement (1) shall be available for the sale of the Registrable
Securities by the Investor, (2) shall comply as to form in all material respects
with the requirements of the applicable form and include or incorporate by
reference all financial statements required by the Commission to be filed
therewith or incorporated by reference therein, and (3) shall comply in all
respects with the requirements of Regulation S-T under the Securities Act, and
(ii) cause such Registration Statement to become effective and remain effective
in accordance with Section 2 of this Agreement.

          Prepare and file with the Commission such amendments and
post-effective amendments to each Registration Statement as may be necessary
under applicable law to

                                       8
<PAGE>

keep such Registration Statement effective for the applicable period; and cause
each Prospectus to be supplemented by any required prospectus supplement or
Issuer Free Writing Prospectus (as defined in Rule 433(h) under the Securities
Act), and cause the Prospectus as so supplemented or any such Issuer Free
Writing Prospectus, as the case may be, to be filed pursuant to Rule 424 or Rule
433, respectively (or any similar provision then in force) under the Securities
Act and comply with the provisions of the Securities Act, the Exchange Act and
the rules and regulations thereunder applicable to it with respect to the
disposition of all securities covered by each Registration Statement during the
applicable period in accordance with the intended method or methods of
distribution by the Investor thereof (including sales by any broker-dealer);

          Not to prepare, use or file any Issuer Free Writing Prospectus (as
defined in Rule 433(h) under the Securities Act) with respect to Registrable
Securities unless such Issuer Free Writing Prospectus has been approved by the
Investor (such approval not be unreasonably withheld);

          During such time as a Registration Statement is effective or such
shorter period that will terminate when all the Registrable Securities have been
sold (the "Registration Period"), comply with the provisions of the Securities
Act with respect to the Registrable Securities of the Company covered by the
Registration Statement;

                  (ii) Prior to the filing with the Commission of any
Registration Statement (including any amendments thereto) and the distribution
or delivery of any Prospectus (including any supplements thereto) or Issuer Free
Writing Prospectus, provide draft copies thereof (including a copy of the
accountant's consent letter to be included in the filing) to the Investor and
reflect in such documents all such comments relating to the Investor and the
plan of the distribution of the Registrable Securities as the Investor
reasonably may propose; and

          Furnish to the Investor (A) promptly after the same is prepared and
publicly distributed, filed with the Commission, or received by the Company, one
copy of the Registration Statement, each Prospectus, each Issuer Free Writing
Prospectus, and each amendment or supplement to any of the foregoing, and (B)
such number of copies of the Prospectus, each Issuer Free Writing Prospectus,
and all amendments and supplements thereto and such other documents, as the
Investor may reasonably request in order to facilitate the disposition of the
Registrable Securities owned by the Investor;

          (iii) Register or qualify the Registrable Securities covered by a
Registration Statement under such securities or "blue sky" laws of all
jurisdictions requiring blue sky registration or qualification,

          Prepare and file in such jurisdictions such amendments (including
post-effective amendments) and supplements to such registrations and
qualifications as may be necessary to maintain the effectiveness thereof at all
times during the Registration Period,

          Take all such other lawful actions as may be necessary to maintain
such registrations and qualifications in effect at all times during the
Registration Period, and

                                       9
<PAGE>

          Take all such other lawful actions reasonably necessary or advisable
to qualify the Registrable Securities for sale in such jurisdictions;

provided, however, that the Company shall not be required in connection with any
of its obligations under this Section 3(f) to (A) qualify to do business in any
jurisdiction where it would not otherwise be required to qualify but for this
Section 3(f), (B) subject itself to general taxation in any such jurisdiction or
(C) file a general consent to service of process in any such jurisdiction;

          As promptly as practicable after becoming aware of such event, notify
the Investor of the occurrence of any event, as a result of which the Prospectus
included in a Registration Statement, as then in effect, or any Issuer Free
Writing Prospectus, taken as a whole with the Prospectus, includes an untrue
statement of a material fact or omits to state a material fact required to be
stated therein or necessary to make the statements therein, in light of the
circumstances under which they were made, not misleading, and promptly prepare
an amendment to a Registration Statement and supplement to the Prospectus to
correct such untrue statement or omission, and deliver a number of copies of
such supplement and amendment to the Investor as the Investor may reasonably
request;

          Notify the Investor of the issuance by the Commission of any stop
order or other suspension of the effectiveness of a Registration Statement on
the date of receipt of any such stop order or other suspension, and take all
lawful action to effect the withdrawal, recession or removal of such stop order
or other suspension;

          Cause all the Registrable Securities covered by a Registration
Statement to be listed on a principal national securities exchange, or included
in an inter-dealer quotation system of a registered national securities
association, on or in which securities of the same class or series issued by the
Company are then listed or included;

          Maintain a transfer agent and registrar, which may be a single entity,
for the Registrable Securities not later than the effective date of the first
Registration Statement;

          Cooperate with the Investor to facilitate the timely preparation and
delivery of certificates for the Registrable Securities to be offered pursuant
to a Registration Statement and enable such certificates for the Registrable
Securities to be in such denominations or amounts, as the case may be, as the
Investor reasonably may request and registered in such names as the Investor may
request; and, within three business days after a registration statement which
includes Registrable Securities is declared effective by the Commission, deliver
to the transfer agent for the Registrable Securities (with copies to the
Investor) an appropriate instruction and, to the extent necessary, cause legal
counsel selected by the Company to deliver an opinion of such counsel to such
transfer agent;

          Take all such other lawful actions reasonably necessary to expedite
and facilitate the disposition by the Investor of its Registrable Securities in
accordance with the intended methods therefor provided in the Prospectus which
are customary under the circumstances, including without limitation, by making
senior management available to

                                       10
<PAGE>

participate in road shows and meeting with potential investors as the Investor
shall reasonably request.

          OBLIGATIONS OF THE INVESTOR. IN CONNECTION WITH THE REGISTRATION OF
THE REGISTRABLE SECURITIES, THE INVESTOR SHALL HAVE THE FOLLOWING OBLIGATIONS:

          It shall be a condition precedent to the obligations of the Company to
complete the registration pursuant to this Agreement with respect to the
Registrable Securities that such Investor shall furnish to the Company such
information regarding itself, the Registrable Securities held by it and the
intended method of disposition of the Registrable Securities held by it as shall
be reasonably required to effect the registration of such Registrable Securities
and shall execute such documents in connection with such registration as the
Company may reasonably request. At least ten business days prior to the first
anticipated filing date of a Registration Statement, the Company shall notify
the Investor and its counsel, whether in-house or otherwise ("Counsel") of the
information relating to the Investor and the Registrable Securities the Company
requires from the Investor in order to prepare and file a Registration Statement
that complies with the Securities Act (the "Requested Information"). If four
business days prior to the anticipated filing date the Company has not received
the Requested Information from the Investor or its Counsel, then the Company
shall send the Investor and its Counsel a reminder of such information request.
If two business days prior to the anticipated filing date the Company still has
not received the Requested Information from the Investor or its Counsel, then
the Company may file the Registration Statement without including Registrable
Securities of the Investor. However, promptly upon receipt of the Requested
Information, and at the Investor's expense, the Company shall file such
amendment(s) to the Registration Statement as may be necessary to include
therein the Registrable Securities.

          The Investor agrees to cooperate with the Company in connection with
the preparation and filing of such Registration Statement hereunder, unless the
Investor has notified the Company in writing of its election in accordance with
the terms and conditions of this Agreement to exclude all of its Registrable
Securities from such Registration Statement.

          The Investor shall not prepare or use any Free Writing Prospectus (as
such term is defined in Rule 405 under the Securities Act) unless any and all
issuer information included therein has been approved by the Company (such
approval not be unreasonably withheld).

          As promptly as practicable after becoming aware of such event, the
Investor shall notify the Company of the occurrence of any event, as a result of
which the Prospectus included in a Registration Statement, as then in effect,
includes an untrue statement of a material fact or omits to state a material
fact required to be stated therein or necessary to make the statements therein,
in light of the circumstances under which they were made, not misleading.

                                       11
<PAGE>

          The Investor agrees that, upon receipt of any notice from the Company
of the occurrence of any event of the kind described in Section 3(g) or 3(h), it
shall immediately discontinue its disposition of Registrable Securities pursuant
to a Registration Statement covering such Registrable Securities until the
Investor's receipt of the copies of the supplemented or amended Prospectus
contemplated by Section 3(g) and, if so directed by the Company, the Investor
shall deliver to the Company (at the expense of the Company) or destroy (and
deliver to the Company a certificate of destruction) all copies (other than
permanent file copies) in the Investor's possession of the Prospectus covering
such Registrable Securities current at the time of receipt of such notice.

          EXPENSES OF REGISTRATION. ALL REGISTRATION EXPENSES SHALL BE PAID BY
THE COMPANY. THE INVESTOR SHALL PAY THE UNDERWRITING DISCOUNT ATTRIBUTABLE TO
SUCH INVESTOR'S REGISTRABLE SECURITIES, ANY TRANSFER TAXES PAYABLE WITH RESPECT
THERETO, AND ALL FEES AND EXPENSES, INCLUDING FEES AND EXPENSES OF SUCH
INVESTOR'S COUNSEL, INCURRED BY THE INVESTOR.

          INDEMNIFICATION AND CONTRIBUTION. (D) THE COMPANY AGREES TO INDEMNIFY
AND HOLD HARMLESS (I) THE INVESTOR, (II) EACH PERSON, IF ANY, WHO CONTROLS
(WITHIN THE MEANING OF SECTION 15 OF THE SECURITIES ACT OR SECTION 20(A) OF THE
EXCHANGE ACT), ANY SUCH PERSON DESCRIBED IN CLAUSE (I) (ANY OF THE PERSONS
REFERRED TO IN THIS CLAUSE (II) BEING HEREINAFTER REFERRED TO AS A "CONTROLLING
PERSON"), AND (III) THE RESPECTIVE OFFICERS, DIRECTORS, PARTNERS, EMPLOYEES,
REPRESENTATIVES AND AGENTS OF ANY SUCH PERSON OR ANY CONTROLLING PERSON (ANY
PERSON REFERRED TO IN CLAUSE (I), (II) OR (III) MAY HEREINAFTER BE REFERRED TO
AS A "PURCHASER INDEMNITEE"), TO THE FULLEST EXTENT LAWFUL, FROM AND AGAINST ANY
AND ALL LOSSES, CLAIMS, DAMAGES, JUDGMENTS, ACTIONS, OUT-OF-POCKET EXPENSES, AND
OTHER LIABILITIES (THE "LIABILITIES"), INCLUDING WITHOUT LIMITATION AND AS
INCURRED, REIMBURSEMENT OF ALL REASONABLE COSTS OF INVESTIGATING, PREPARING,
PURSUING OR DEFENDING ANY CLAIM OR ACTION, OR ANY INVESTIGATION OR PROCEEDING BY
ANY GOVERNMENTAL AGENCY OR BODY, COMMENCED OR THREATENED, INCLUDING THE
REASONABLE FEES AND EXPENSES OF COUNSEL TO ANY PURCHASER INDEMNITEE, JOINT OR
SEVERAL, DIRECTLY OR INDIRECTLY RELATED TO, BASED UPON, ARISING OUT OF OR IN
CONNECTION WITH ANY UNTRUE STATEMENT OR ALLEGED UNTRUE STATEMENT OF A MATERIAL
FACT CONTAINED IN ANY REGISTRATION STATEMENT OR PROSPECTUS (AS AMENDED OR
SUPPLEMENTED IF THE COMPANY SHALL HAVE FURNISHED TO SUCH PURCHASER INDEMNITEE
ANY AMENDMENTS OR SUPPLEMENTS THERETO), OR ANY PRELIMINARY PROSPECTUS OR ISSUER
FREE WRITING PROSPECTUS TAKEN AS A WHOLE WITH THE PRELIMINARY PROSPECTUS, OR ANY
OMISSION OR ALLEGED OMISSION TO STATE THEREIN A MATERIAL FACT REQUIRED TO BE
STATED THEREIN OR NECESSARY TO MAKE THE STATEMENTS THEREIN, IN LIGHT OF

                                       12
<PAGE>

THE CIRCUMSTANCES UNDER WHICH THEY WERE MADE, NOT MISLEADING, EXCEPT INSOFAR AS
SUCH LIABILITIES ARISE OUT OF OR ARE BASED UPON (I) ANY UNTRUE STATEMENT OR
OMISSION OR ALLEGED UNTRUE STATEMENT OR OMISSION MADE IN RELIANCE UPON AND IN
CONFORMITY WITH INFORMATION RELATING TO ANY PURCHASER INDEMNITEE FURNISHED TO
THE COMPANY OR ANY UNDERWRITER IN WRITING BY SUCH PURCHASER INDEMNITEE EXPRESSLY
FOR USE THEREIN, OR (II) ANY UNTRUE STATEMENT CONTAINED IN OR OMISSION FROM OR
ALLEGED UNTRUE STATEMENT CONTAINED IN OR ALLEGED OMISSION FROM A PRELIMINARY
PROSPECTUS IF A COPY OF THE PRELIMINARY PROSPECTUS (AS THEN AMENDED OR
SUPPLEMENTED, IF THE COMPANY SHALL HAVE FURNISHED OR MADE AVAILABLE TO OR ON
BEHALF OF THE INVESTOR PARTICIPATING IN THE DISTRIBUTION RELATING TO THE
RELEVANT REGISTRATION STATEMENT ANY AMENDMENTS OR SUPPLEMENTS THERETO) WAS NOT
SENT OR GIVEN BY OR ON BEHALF OF THE INVESTOR TO THE PERSON ASSERTING ANY SUCH
LIABILITIES WHO PURCHASED THE SHARES OF COMMON STOCK, IF SUCH PRELIMINARY
PROSPECTUS (OR PRELIMINARY PROSPECTUS AS AMENDED OR SUPPLEMENTED) IS FURNISHED
OR MADE AVAILABLE TO THE INVESTOR PRIOR TO THE TIME OF SALE OF SUCH SHARES OF
COMMON STOCK TO SUCH PERSON AND THE UNTRUE STATEMENT CONTAINED IN OR OMISSION
FROM OR ALLEGED UNTRUE STATEMENT CONTAINED IN OR ALLEGED OMISSION FROM SUCH
PRELIMINARY PROSPECTUS WAS CORRECTED IN THE PRELIMINARY PROSPECTUS, AS AMENDED
OR SUPPLEMENTED. THE COMPANY SHALL NOTIFY THE INVESTOR PROMPTLY OF THE
INSTITUTION, THREAT OR ASSERTION OF ANY CLAIM, PROCEEDING (INCLUDING ANY
GOVERNMENTAL INVESTIGATION), OR LITIGATION OF WHICH IT SHALL HAVE BECOME AWARE
IN CONNECTION WITH THE MATTERS ADDRESSED BY THIS AGREEMENT WHICH INVOLVES THE
COMPANY OR A PURCHASER INDEMNITEE. THE INDEMNITY PROVIDED FOR HEREIN SHALL
REMAIN IN FULL FORCE AND EFFECT REGARDLESS OF ANY INVESTIGATION MADE BY OR ON
BEHALF OF ANY PURCHASER INDEMNITEE.

          Indemnification by the Investor. In connection with any Registration
Statement in which a holder of Registrable Securities is participating, the
Investor agrees, severally and not jointly, to indemnify and hold harmless the
Company, each Person who controls the Company within the meaning of Section 15
of the Securities Act or Section 20(a) of the Exchange Act and the respective
partners, directors, officers, members, representatives, employees and agents of
such Person or Controlling Person to the same extent as the foregoing indemnity
from the Company to each Purchaser Indemnitee, but only with reference to untrue
statements or omissions or alleged untrue statements or omissions made in
reliance upon and in strict conformity with information relating to such
Purchaser Indemnitee furnished to the Company in writing by such Purchaser
Indemnitee expressly for use in any Registration Statement or Prospectus, any
amendment or supplement thereto or any preliminary Prospectus or Issuer Free
Writing Prospectus. The liability of any Purchaser Indemnitee pursuant to this
paragraph shall in no event exceed

                                       14
<PAGE>

the net proceeds received by such Purchaser Indemnitee from sales of Registrable
Securities giving rise to such obligations.

          Notice of Claims, etc. If any suit, action, proceeding (including any
governmental or regulatory investigation), claim or demand shall be brought or
asserted against any Person in respect of which indemnity may be sought pursuant
to paragraph (a) or (b) above, such Person (the "Indemnified Party"), shall
promptly notify the Person against whom such indemnity may be sought (the
"Indemnifying Party"), in writing of the commencement thereof (but the failure
to so notify an Indemnifying Party shall not relieve it from any liability which
it may have under this Section 6, except to the extent the Indemnifying Party is
materially prejudiced by the failure to give notice), and the Indemnifying
Party, upon request of the Indemnified Party, shall retain counsel reasonably
satisfactory to the Indemnified Party to represent the Indemnified Party and any
others the Indemnifying Party may reasonably designate in such action, suit,
proceeding, claim or demand and shall pay the reasonable fees and expenses
actually incurred by such counsel related to such proceeding. Notwithstanding
the foregoing, in any such proceeding, any Indemnified Party shall have the
right to retain its own counsel, but the fees and expenses of such counsel shall
be at the expense of such Indemnified Party, unless (i) the Indemnifying Party
and the Indemnified Party shall have mutually agreed in writing to the contrary,
(ii) the Indemnifying Party failed within a reasonable time after notice of
commencement of the action to assume the defense and employ counsel reasonably
satisfactory to the Indemnified Party, or (iii) the named parties to any such
action (including any impleaded parties) include both such Indemnified Party and
the Indemnifying Party, or any Affiliate of the Indemnifying Party, and such
Indemnified Party shall have been reasonably advised by counsel that either (x)
there may be one or more legal defenses available to it which are different from
or additional to those available to the Indemnifying Party or such Affiliate of
the Indemnifying Party or (y) a conflict may exist between such Indemnified
Party and the Indemnifying Party or such Affiliate of the Indemnifying Party (in
which case the Indemnifying Party shall not have the right to assume nor direct
the defense of such action on behalf of such Indemnified Party, it being
understood, however, that the Indemnifying Party shall not, in connection with
any one such action or separate but substantially similar or related actions
arising out of the same general allegations or circumstances, be liable for the
fees and expenses of more than one separate firm of attorneys (in addition to
any local counsel), for all such Indemnified Parties, and any such separate firm
for the Indemnifying Party, the directors, the officers and such control Persons
of the Indemnified Party as shall be designated in writing by the Indemnifying
Party). The Indemnifying Party shall not be liable for any settlement of any
proceeding effected without its written consent, which consent shall not be
unreasonably withheld, but if settled with such consent or if there is a final
judgment for the plaintiff, the Indemnifying Party agrees to indemnify any
Indemnified Party from and against any loss or liability by reason of such
settlement or judgment. No Indemnifying Party shall, without the prior written
consent of the Indemnified Party, effect any settlement of any pending or
threatened proceeding in respect of which any Indemnified Party is or could have
been a party and indemnity could have been sought hereunder by such Indemnified
Party, unless such settlement includes an unconditional release of such
Indemnified Party from all liability on claims that are the subject matter of
such proceeding.

                                       15
<PAGE>

          Contribution. If the indemnification provided for in paragraphs (a)
and (b) of this Section 6 is for any reason held to be unavailable to an
Indemnified Party in respect of any Liabilities referred to therein (other than
by reason of the exceptions provided therein) or is insufficient to hold
harmless a party indemnified thereunder, then each Indemnifying Party under such
paragraphs, in lieu of indemnifying such Indemnified Party thereunder, shall
contribute to the amount paid or payable by such Indemnified Party as a result
of such Liabilities (i) in such proportion as is appropriate to reflect the
relative benefits of the Indemnified Party on the one hand and the Indemnifying
Party(ies) on the other in connection with the statements or omissions that
resulted in such Liabilities, or (ii) if the allocation provided by clause (i)
above is not permitted by applicable law, in such proportion as is appropriate
to reflect not only the relative benefits referred to in clause (i) above but
also the relative fault of the Indemnifying Party(ies) and the Indemnified
Party, as well as any other relevant equitable considerations. The relative
fault of the Company on the one hand and any Purchaser Indemnitees on the other
shall be determined by reference to, among other things, whether the untrue or
alleged untrue statement of a material fact or the omission or alleged omission
to state a material fact relates to information supplied by the Company or by
such Purchaser Indemnitees and the parties' relative intent, knowledge, access
to information and opportunity to correct or prevent such statement or omission.

          The parties agree that it would not be just and equitable if
contribution pursuant to this Section 6 were determined by pro rata allocation
(even if such Indemnified Parties were treated as one entity for such purpose),
or by any other method of allocation that does not take account of the equitable
considerations referred to in paragraph 6(d) above. The amount paid or payable
by an Indemnified Party as a result of any Liabilities referred to paragraph
6(d) shall be deemed to include, subject to the limitations set forth above, any
reasonable legal or other expenses actually incurred by such Indemnified Party
in connection with investigating or defending any such action or claim.
Notwithstanding the provisions of this Section 6, in no event shall a Purchaser
Indemnitee be required to contribute any amount in excess of the amount by which
proceeds received by such Purchaser Indemnitee from sales of Registrable
Securities exceeds the amount of any damages that such Purchaser Indemnitee has
otherwise been required to pay by reason of such untrue or alleged untrue
statement or omission or alleged omission. For purposes of this Section 6, each
Person, if any, who controls (within the meaning of Section 15 of the Act or
Section 20(a) of the Exchange Act) the Investor shall have the same rights to
contribution as the Investor and each Person, if any, who controls (within the
meaning of Section 15 of the Act or Section 20(a) of the Exchange Act) the
Company, and each officer, director, partner, employee, representative, agent or
manager of the Company shall have the same rights to contribution as the
Company. Any party entitled to contribution will, promptly after receipt of
notice of commencement of any action, suit or proceeding against such party in
respect of which a claim for contribution may be made against another party or
parties, notify each party or parties from whom contribution may be sought, but
the omission to so notify such party or parties shall not relieve the party or
parties from whom contribution may be sought from any obligation it or they may
have under this Section 6 or otherwise, except to the extent that any party is
materially prejudiced by the failure to give notice. No Person guilty of
fraudulent misrepresentation (within the meaning of Section 11(f) of the

                                       16
<PAGE>

Securities Act) shall be entitled to contribution from any Person who was not
guilty of such fraudulent misrepresentation.

          The indemnity and contribution agreements contained in this Section 6
will be in addition to any liability which the Indemnifying Parties may
otherwise have to the Indemnified Parties referred to above. The Purchaser
Indemnitees' obligations to contribute pursuant to this Section 6 are several in
proportion to the respective number of Shares sold by each of the Purchaser
Indemnitees hereunder and not joint.

          ASSIGNMENT. THE RIGHTS TO HAVE THE COMPANY REGISTER REGISTRABLE
SECURITIES PURSUANT TO THIS AGREEMENT MAY BE ASSIGNED OR TRANSFERRED ONLY WITH
THE PRIOR WRITTEN CONSENT OF THE COMPANY, AND ANY SUCH ASSIGNMENT OR TRANSFER
WITHOUT SUCH CONSENT SHALL BE VOID AND OF NO EFFECT. IN THE EVENT OF ANY SUCH
PERMITTED ASSIGNMENT OR TRANSFER BY THE INVESTOR TO ANY PERMITTED TRANSFEREE OF
ALL OR ANY PORTION OF SUCH REGISTRABLE SECURITIES, SUCH TRANSFER WILL BE ALLOWED
ONLY IF: (A) THE INVESTOR AGREES IN WRITING WITH THE TRANSFEREE OR ASSIGNEE TO
ASSIGN SUCH RIGHTS, AND A COPY OF SUCH AGREEMENT IS FURNISHED TO THE COMPANY
WITHIN A REASONABLE TIME AFTER SUCH ASSIGNMENT, (B) THE COMPANY IS, WITHIN A
REASONABLE TIME AFTER SUCH TRANSFER OR ASSIGNMENT, FURNISHED WITH WRITTEN NOTICE
OF (I) THE NAME AND ADDRESS OF SUCH TRANSFEREE OR ASSIGNEE AND (II) THE
REGISTRABLE SECURITIES WITH RESPECT TO WHICH SUCH REGISTRATION RIGHTS ARE BEING
TRANSFERRED OR ASSIGNED, (C) IMMEDIATELY FOLLOWING SUCH TRANSFER OR ASSIGNMENT,
THE REGISTRABLE SECURITIES SO TRANSFERRED OR ASSIGNED TO THE TRANSFEREE OR
ASSIGNEE CONSTITUTE RESTRICTED SECURITIES, (D) AT OR BEFORE THE TIME THE COMPANY
RECEIVED THE WRITTEN NOTICE CONTEMPLATED BY CLAUSE (B) OF THIS SENTENCE THE
TRANSFEREE OR ASSIGNEE AGREES IN WRITING WITH THE COMPANY TO BE BOUND BY ALL OF
THE PROVISIONS CONTAINED HEREIN, AND (E) THE COMPANY IS FURNISHED WITH AN
OPINION OF COUNSEL, WHICH COUNSEL AND OPINION SHALL BE REASONABLY SATISFACTORY
TO THE COMPANY, TO THE EFFECT THAT THE PERMITTED ASSIGNMENT WOULD BE IN
COMPLIANCE WITH THE SECURITIES ACT AND ANY APPLICABLE STATE OR OTHER SECURITIES
LAWS.

          AMENDMENT AND WAIVER. ANY PROVISION OF THIS AGREEMENT MAY BE AMENDED
AND THE OBSERVANCE THEREOF MAY BE WAIVED (EITHER GENERALLY OR IN A PARTICULAR
INSTANCE AND EITHER RETROACTIVELY OR PROSPECTIVELY), ONLY WITH THE WRITTEN
CONSENT OF THE COMPANY AND THE INVESTOR. ANY AMENDMENT OR WAIVER EFFECTED IN
ACCORDANCE WITH THIS SECTION 8 SHALL BE BINDING UPON THE INVESTOR AND THE
COMPANY.

                                       16
<PAGE>

          9. Miscellaneous.
             -------------

          A person or entity shall be deemed to be a holder of Registrable
Securities whenever such person or entity owns of record such Registrable
Securities. If the Company receives conflicting instructions, notices or
elections from two or more persons or entities with respect to the same
Registrable Securities, the Company shall act upon the basis of instructions,
notice or election received from the registered owner of such Registrable
Securities.

          Except as may be otherwise provided herein, any notice or other
communication or delivery required or permitted hereunder shall be in writing
and shall be delivered personally or sent by certified mail, postage prepaid, by
a nationally recognized overnight courier service or by facsimile as follows,
and shall be deemed given when actually received.

                           If to the Company, to:

                             Tower Group, Inc.
                             120 Broadway, 31st Floor
                             New York, New York 10271
                             Attention:  Stephen L. Kibblehouse, Esq.
                             Fax:  (646) 514-8612

                           With a copy (which shall not constitute notice) to:

                             LeBoeuf, Lamb, Greene & MacRae LLP
                             125 West 55th Street
                             New York, New York 10019
                             Attention: Matthew M. Ricciardi, Esq.
                             Fax:  (212) 649-9483

                           If to the Investor, to:

                             CastlePoint Reinsurance Company, Ltd.
                             Victoria House
                             11 Victoria House
                             Hamilton HM 11  Bermuda
                             Attention:  Joel Weiner
                             Fax Number:  (441) 292-4720

                           With a copy (which shall not constitute notice) to:

                             CastlePoint Holdings, Ltd.
                             120 Broadway
                             New York, NY 10271
                             Attention: Roger A. Brown
                             Fax Number: (212) 847-9549

                                       17
<PAGE>

          The Company or the Investor may change the foregoing address by notice
given pursuant to this Section 9(b).

          Failure of any party to exercise any right or remedy under this
Agreement or otherwise, or delay by a party in exercising such right or remedy,
shall not operate as a waiver thereof.

          This Agreement shall be governed by and interpreted in accordance with
the laws of the State of New York, without regard to conflicts of laws
principles.

          The remedies provided in this Agreement are cumulative and not
exclusive of any remedies provided by law. If any term, provision, covenant or
restriction of this Agreement is held by a court of competent jurisdiction to be
invalid, illegal, void or unenforceable, the remainder of the terms, provisions,
covenants and restrictions set forth herein shall remain in full force and
effect and shall in no way be affected, impaired or invalidated, and the parties
hereto shall use good faith efforts to find and employ an alternative means to
achieve the same or substantially the same result as that contemplated by such
term, provision, covenant or restriction. It is hereby stipulated and declared
to be the intention of the parties that they would have executed the remaining
terms, provisions, covenants and restrictions without including any of such that
may be hereafter declared invalid, illegal, void or unenforceable.

          This Agreement constitutes the entire agreement among the parties
hereto with respect to the subject matter hereof. There are no restrictions,
promises, warranties or undertakings, other than those set forth or referred to
herein. This Agreement supersedes all prior agreements and undertakings among
the parties hereto with respect to the subject matter hereof.

          Subject to the requirements of Section 7 hereof, this Agreement shall
inure to the benefit of and be binding upon the successors and assigns of each
of the parties hereto.

          All pronouns and any variations thereof refer to the masculine,
feminine or neuter, singular or plural, as the context may require.

          The headings in this Agreement are for convenience of reference only
and shall not limit or otherwise affect the meaning thereof.

          From and after the date of this Agreement, upon the request of the
Investor or the Company, the Company and the Investor shall execute and deliver
such instruments, documents or other writings as may be reasonably necessary or
desirable to confirm and carry out and to effectuate fully the intent and
purposes of this Agreement.

          This Agreement may be signed in any number of counterparts, each of
which shall be an original, with the same effect as if the signatures thereto
and hereto were upon the same instrument. Signatures delivered by facsimile
shall be deemed to be original signatures.

                                       18
<PAGE>

                            [Signature Page Follows]

                                       19
<PAGE>

          IN WITNESS WHEREOF, the parties hereto have executed this Agreement as
of the date first above written.

                            TOWER GROUP, INC.
                               a Delaware corporation

                        By: _____________________________
                            Name:
                            Title:

                            CASTLEPOINT REINSURANCE COMPANY, LTD.
                            a Bermuda company

                         By: ___________________________
                            Name:
                            Title:

                                       20
<PAGE>

                                    Exhibit A
                                    ---------

                              Plan of Distribution
                              --------------------

          The selling stockholder and any of its donees, transferees, pledgees,
assignees and successors-in-interest may sell, from time to time, any or all of
their common stock on any stock exchange, market or trading facility on which
the shares are traded or in private transactions. These sales may be at fixed or
negotiated prices. The selling stockholder may use any one or more of the
following methods when selling shares:

          o   ordinary brokerage transactions and transactions in which
              the broker-dealer solicits purchasers;

          o   block trades in which the broker-dealer so engaged will
              attempt to sell the shares as agent but may position and
              resell a portion of the block as principal to facilitate the
              transaction;

          o   purchases by a broker-dealer as principal and resale by the
              broker-dealer for its account;

          o   over-the-counter distribution in accordance with the rules
              of the Nasdaq Stock Market;

          o   privately negotiated transactions;

          o   short sales;

          o   broker-dealers may agree with the selling stockholder to
              sell a specified number of such shares at a stipulated price
              per share;

          o   a combination of any such methods of sale; and

          o   any other method permitted pursuant to applicable law.

          Under applicable rules and regulations under the Securities Exchange
Act of 1934, as amended (the "Securities Exchange Act"), any person engaged in a
distribution of the shares of common stock covered by this prospectus may be
limited in its ability to engage in market activities with respect to such
shares. The selling stockholder, for example, will be subject to applicable
provisions of the Securities Exchange Act and the rules and regulations under
it, including, without limitation, Regulation M, which provisions may restrict
certain activities of the selling stockholder and limit the timing of purchases
and sales of any shares of common stock by the selling stockholder. Furthermore,
under Regulation M, persons engaged in a distribution of securities are
prohibited from simultaneously engaging in market making and certain other
activities with respect to such securities for a specified period of time prior
to the commencement of such distributions, subject to specified exceptions or
exemptions. The foregoing may affect the marketability of the shares offered by
this prospectus.

                                       1
<PAGE>

          To the extent required, this prospectus may be amended or supplemented
from time to time to describe a specific plan of distribution. In connection
with distributions of the shares or otherwise, the selling stockholders may
enter into hedging transactions with broker-dealers or other financial
institutions. In connection with such transactions, broker-dealers or other
financial institutions may engage in short sales of our common stock in the
course of hedging the positions they assume with selling stockholders. The
selling stockholders may also sell our securities short and redeliver the shares
to close out such short positions. The selling stockholders may also enter into
option or other transactions with broker-dealers or other financial institutions
that require the delivery to such broker-dealer or other financial institution
of shares offered by this prospectus, which shares the broker-dealer or other
financial institution may resell pursuant to this prospectus, as supplemented or
amended to reflect such transaction.

          The selling stockholder may also engage in short sales against the
box, puts and calls and other transactions in our securities or derivatives of
our securities and may sell or deliver shares in connection with these trades.
The selling stockholder may pledge its shares to its brokers under the margin
provisions of customer agreements. If the selling stockholder defaults on a
margin loan, the broker may offer and sell, from time to time, the pledged
shares.

          The selling stockholder may sell shares directly to market makers
acting as principals and/or broker-dealers acting as agents for itself or its
customers. Broker-dealers engaged by the selling stockholder may arrange for
other broker-dealers to participate in sales. Broker-dealers may receive
commissions, concessions or discounts from the selling stockholder (or, if any
broker-dealer acts as agent for the purchaser of shares, from the purchaser) in
amounts to be negotiated. The selling stockholder does not expect these
commissions and discounts to exceed what is customary in the types of
transactions involved. Market makers and block purchasers that purchase the
shares will do so for their own account and at their own risk. It is possible
that a selling stockholder will attempt to sell shares in block transactions to
market makers or other purchasers at a price per share that may be below the
then-current market price. We cannot make assurances that all or any of the
shares of common stock will be issued to, or sold by, the selling stockholder.

          In addition, any shares that qualify for sale pursuant to Rule 144
promulgated under the Securities Act of 1933, as amended (the "Securities Act"),
may be sold under Rule 144 rather than pursuant to this prospectus.

          The selling stockholder and any broker-dealers or agents that are
involved in selling the shares may be deemed to be "underwriters" within the
meaning of the Securities Act in connection with such sales. In such event, any
commissions received by such broker-dealers or agents and any profit on the
resale of the shares purchased by them may be deemed to be underwriting
commissions or discounts under the Securities Act.

          In certain states, the applicable state securities laws will require a
holder of shares desiring to sell its shares to sell its shares only through
registered or licensed brokers or dealers. In addition, in certain states the
shares may not be sold unless they have been registered or qualified for sale in
the applicable state or an exemption from the registration or qualification
requirement is available and is complied with.

                                       2
<PAGE>

          We are required to pay all fees and expenses incident to the
registration of the shares. We have agreed to indemnify the selling stockholders
against certain losses, claims, damages and liabilities, including liabilities
under the Securities Act.

          In addition, we will make copies of this prospectus available to the
selling stockholders for the purpose of satisfying the prospectus delivery
requirements of the Securities Act. The selling stockholders may indemnify any
broker-dealer that participates in transactions involving the sale of the shares
against certain liabilities, including liabilities arising under the Securities
Act.

          At the time a particular offer of shares is made, if required, a
prospectus supplement will be distributed that will set forth the number of
shares being offered and the terms of the offering, including the name of any
underwriter, dealer or agent, the purchase price paid by any underwriter, any
discount, commission and other item constituting compensation, any discount,
commission or concession allowed or reallowed or paid to any dealer, and the
proposed selling price to the public.

                                       3Exhibit 4.1

EXECUTION COPY

 

 

 

 

 

 

 

 

 

 

 

 

THE INTERPUBLIC GROUP OF COMPANIES, INC.

and

THE BANK OF NEW YORK

Trustee

__________________________

Senior Debt Indenture

Dated as of November 15, 2006

____________________________

 

 

 

 

 

 

  TABLE OF CONTENTS

  _____________________

PAGE  

 ARTICLE 1 

DEFINITIONS AND OTHER PROVISIONS OF GENERAL APPLICATION

	
      SECTION 1.01.  
	 Definitions  	 2  
	
      SECTION 1.02.  
	 Compliance Certificates and Opinions  	 11  
	
      SECTION 1.03.  
	 Form of Documents Delivered to Trustee  	 12  
	
      SECTION 1.04.  
	 Acts of Holders  	 13  
	
      SECTION 1.05.  
	 Notices, Etc., to Trustee and Company  	 14  
	
      SECTION 1.06.  
	 Notice to Holders; Waiver  	 15  
	
      SECTION 1.07.  
	 Conflict with Trust Indenture Act  	 15  
	
      SECTION 1.08.  
	 Effect of Headings and Table of Contents  	 15  
	
      SECTION 1.09.  
	 Successors and Assigns  	 16  
	
      SECTION 1.10.  
	 Separability Clause  	 16  
	
      SECTION 1.11.  
	 Benefits of Indenture  	 16  
	
      SECTION 1.12.  
	 Governing Law  	 16  
	
      SECTION 1.13.  
	 Legal Holidays  	 16  
	
      SECTION 1.14.  
	 No Recourse Against Others  	 16  
	
      SECTION 1.15.  
	 Judgment Currency  	 16  
	
      
	 	 
	
      ARTICLE 2

	
    SECURITY FORMS

	
      SECTION 2.01.  
	 Forms Generally  	 17  
	
      SECTION 2.02.  
	 Form of Face of Security  	 17  
	
      SECTION 2.03.  
	 Form of Reverse of Security  	 20  
	
      SECTION 2.04.  
	 Form of Trustee’s Certificate of Authentication  	 25  
	
      SECTION 2.05.  
	 Securities in Global Form  	 25  
	
      SECTION 2.06.  
	 Form of Legend for the Securities in Global Form  	 26  
	
      
	 	 
	
      

      ARTICLE 3

    THE SECURITIES  

	
      SECTION 3.01.  
	 Amount Unlimited; Issuable in Series  	 26  
	
      SECTION 3.02.  
	 Denominations  	 29  
	
      SECTION 3.03.  
	 Execution, Authentication, Delivery and Dating  	 29  
	
      SECTION 3.04.  
	 Temporary Securities  	 31  
	
      SECTION 3.05.  
	 Registration, Registration of Transfer and Exchange  	 32  
	
      SECTION 3.06.  
	 Mutilated, Destroyed, Lost and Stolen Securities  	 34  
	
      SECTION 3.07.  
	 Payment of Interest; Interest Rights Preserved  	 35  
	
      SECTION 3.08.  
	 Persons Deemed Owners  	 36  
	
      SECTION 3.09.  
	 Cancellation  	 37  
	
      SECTION 3.10.  
	 Computation of Interest  	 37  

	
      SECTION 3.11.  
	 CUSIP Number  	 37  
	
      SECTION 3.12.  
	 Wire Transfers  	 37  
	
      SECTION 3.13.  
	 Original Issue Discount  	 37  
	
      
	 	 
	
      

      ARTICLE 4

          SATISFACTION AND DISCHARGE

	
      SECTION 4.01.  
	 Satisfaction and Discharge of Indenture  	 38  
	
      SECTION 4.02.  
	 Application of Trust Money  	 38  
	
      
	 	 
	
      ARTICLE 5  

	
      Remedies  

	
      SECTION 5.01.  
	 Events of Default  	 39  
	
      SECTION 5.02.  
	 Acceleration of Maturity; Rescission and Annulment  	 41  
	
      SECTION 5.03.  
	 Collection of Indebtedness and Suits for Enforcement by Trustee  	
      41  

	
      SECTION 5.04.  
	 Trustee May File Proofs of Claim  	 42  
	
      SECTION 5.05.  
	 Trustee May Enforce Claims Without Possession of Securities  	
      43  

	
      SECTION 5.06.  
	 Application of Money Collected  	 43  
	
      SECTION 5.07.  
	 Limitation on Suits  	 44  
	
      SECTION 5.08.  
	 Unconditional Right of Holders to Receive Principal, Premium and Interest  	
      44  

	
      SECTION 5.09.  
	 Restoration of Rights and Remedies  	 44  
	
      SECTION 5.10.  
	 Rights and Remedies Cumulative  	 45  
	
      SECTION 5.11.  
	 Delay or Omission Not Waiver  	 45  
	
      SECTION 5.12.  
	 Control by Holders  	 45  
	
      SECTION 5.13.  
	 Waiver of Past Defaults  	 45  
	
      SECTION 5.14.  
	 Undertaking for Costs  	 46  
	
      
	 	 
	
      ARTICLE 6  

	
    THE TRUSTEE  

	
      SECTION 6.01.  
	 Certain Duties and Responsibilities of the Trustee  	 46  
	
      SECTION 6.02.  
	 Notice of Defaults  	 46  
	
      SECTION 6.03.  
	 Certain Rights of Trustee  	 47  
	
      SECTION 6.04.  
	 Not Responsible for Recitals or Issuance of Securities  	 48  
	
      SECTION 6.05.  
	 May Hold Securities  	 49  
	
      SECTION 6.06.  
	 Money Held in Trust  	 49  
	
      SECTION 6.07.  
	 Compensation and Reimbursement  	 49  
	
      SECTION 6.08.  
	 Disqualification; Conflicting Interests  	 50  
	
      SECTION 6.09.  
	 Corporate Trustee Required; Eligibility  	 50  
	
      SECTION 6.10.  
	 Resignation and Removal; Appointment of Successor  	 50  
	
      SECTION 6.11.  
	 Acceptance of Appointment by Successor  	 52  
	
      SECTION 6.12.  
	 Merger, Conversion, Consolidation or Succession to Business  	 53  

	
      SECTION 6.13.  
	 Preferential Collection of Claims Against Company  	 53  

 ii

	 SECTION 6.14.  	 Appointment of Authenticating Agent  	 53  
	 SECTION 6.15.  	 Compliance with Tax Laws  	 55  
	  
	
      ARTICLE 7  

	
      HOLDERS’ LISTS AND REPORTS BY TRUSTEE AND COMPANY  

	 SECTION 7.01.  	 Company to Furnish Trustee Names and Addresses of Holders  	
      55  

	 SECTION 7.02.  	 Preservation of Information; Communications to Holders    	
      55  

	 SECTION 7.03.  	 Reports by Trustee  	 57  
	 SECTION 7.04.  	 Reports by Company  	 57  
	  
	
      ARTICLE 8  

	
    CONSOLIDATION, MERGER, LEASE, SALE OR TRANSFER  

    

	 SECTION 8.01.  	 When Company May Merge, Etc.  	 58  
	 SECTION 8.02.  	 Opinion of Counsel  	 58  
	 SECTION 8.03.  	 Successor Corporation Substituted  	 58  
	  
	
      ARTICLE 9  

	
    SUPPLEMENTAL INDENTURES  

	 SECTION 9.01.  	 Supplemental Indentures Without Consent of Holders  	 59  
	 SECTION 9.02.  	 Supplemental Indentures with Consent of Holders  	 60  
	 SECTION 9.03.  	 Execution of Supplemental Indentures  	 61  
	 SECTION 9.04.  	 Effect of Supplemental Indentures  	 61  
	 SECTION 9.05.  	 Conformity with Trust Indenture Act  	 61  
	 SECTION 9.06.  	 Reference in Securities to Supplemental Indentures  	 62  
	  
	
      ARTICLE 10  

	
    COVENANTS  

	 SECTION 10.01.  	 Payments of Securities  	 62  
	 SECTION 10.02.  	 Maintenance of Office or Agency  	 62  
	 SECTION 10.03.  	 Corporate Existence  	 62  
	 SECTION 10.04.  	 Payment of Taxes and Other Claims  	 63  
	 SECTION 10.05.  	 Maintenance of Properties  	 63  
	 SECTION 10.06.  	 Compliance Certificates  	 63  
	 SECTION 10.07.  	 Waiver of Stay, Extension or Usury Laws  	 64  
	 SECTION 10.08.  	 Money for Securities Payments to Be Held in Trust  	 64  
	 SECTION 10.09.  	 Limitations on Liens  	 65  
	 SECTION 10.10.  	 Limitations on Sale and Lease-back Transactions  	 66  
	 SECTION 10.11.  	 Waiver of Certain Covenants  	 67  
	  
	      ARTICLE 11

    REDEMPTION OF SECURITIES  

	 SECTION 11.01.  	 Applicability of Article  	 67  
	 SECTION 11.02.  	 Election to Redeem; Notice to Trustee  	 67  

iii 

	
      SECTION 11.03.  
	 Selection by Trustee of Securities to Be Redeemed  	 67  
	
      SECTION 11.04.  
	 Notice of Redemption  	 68  
	
      SECTION 11.05.  
	 Deposit of Redemption Price  	 68  
	
      SECTION 11.06.  
	 Securities Payable on Redemption Date  	 69  
	
      SECTION 11.07.  
	 Securities Redeemed in Part  	 69  
	
      
	 	 
	
      

    ARTICLE 12

          SINKING FUNDS  

	
      SECTION 12.01.  
	 Applicability of Article  	 69  
	
      SECTION 12.02.  
	 Satisfaction of Sinking Fund Payments with Securities  	 70  
	
      SECTION 12.03.  
	 Redemption of Securities for Sinking Fund  	 70  
	
      
	 	 
	
      
      ARTICLE 13

    DEFEASANCE AND COVENANT DEFEASANCE  

	
      SECTION 13.01.  
	 Applicability of Article; Company’s Option to Effect Defeasance or Covenant Defeasance  	
      70  

	
      SECTION 13.02.  
	 Defeasance and Discharge  	 71  
	
      SECTION 13.03.  
	 Covenant Defeasance  	 71  
	
      SECTION 13.04.  
	 Conditions to Defeasance or Covenant Defeasance  	 71  
	
      SECTION 13.05.  
	 Deposited Money and Government Obligations To Be Held in Trust  	
      73  

	
      SECTION 13.06.  
	 Reinstatement  	 74  
	
      
	 	 
	
      ARTICLE 14

    MISCELLANEOUS  

	
      SECTION 14.01.  
	 Miscellaneous  	 74  

 iv

THE INTERPUBLIC GROUP OF COMPANIES, INC.

Reconciliation and tie between Trust Indenture Act of 1939

and Indenture, dated as of November 15, 2006

	
      
        Trust Indenture Act

            Section

    
	
       
	
      
        Indenture

            Section

    

	
      § 310(a)
	(1)	
       
	
      6.09

	
      (a)
	(2)	
       
	
      6.09

	
      (a)
	(3)	
       
	
      Not Applicable

	
      (a)
	(4)	
       
	
      Not Applicable

	
      (b)
	 	
       
	
      6.08, 6.10

	
      § 311(a)
	 	
       
	
      6.13

	
      (b)
	 	
       
	
      6.13

	
      (b)
	(2)	
       
	
      7.03(a), 7.03(b)

	
      § 312(a)
	 	
       
	
      7.01, 7.02(a)

	
      (b)
	 	
       
	
      7.02(b)

	
      (c)
	 	
       
	
      7.02(c)

	
      § 313(a)
	 	
       
	
      7.03(a)

	
      (b)
	 	
       
	
      7.03(a)

	
      (c)
	 	
       
	
      7.03(a), 7.03(b)

	
      (d)
	 	
       
	
      7.03(b)

	
      § 314(a)
	 	
       
	
      7.04, 10.06

	
      (b)
	 	
       
	
      Not Applicable

	
      (c)
	(1)	
       
	
      1.02

	
      (c)
	(2)	
       
	
      1.02

	
      (c)
	(3)	
       
	
      Not Applicable

	
      (d)
	 	
       
	
      Not Applicable

	
      (e)
	 	
       
	
      1.02

	
      § 315(a)
	 	
       
	
      6.01(a)

	
      (b)
	 	
       
	
      6.02, 7.03(a)

	
      (c)
	 	
       
	
      6.01(b)

	
      (d)
	 	
       
	
      6.01(c)

	
      (d)
	(1)	
       
	
      6.01(a), 6.01(c)

	
      (d)
	(2)	
       
	
      6.01(c)

	
      (d)
	(3)	
       
	
      6.01(c)

	
      (e)
	 	
       
	
      5.14

	
      § 316(a)
	(1)(A)	
       
	
      5.12

	
      (a)
	(1)(B)	
       
	
      5.02, 5.13

	
      (a)
	(2)	
       
	
      Not Applicable

	
      (b)
	 	
       
	
      5.08

	
      (c)
	 	
       
	
      1.04(e)

	
      § 317(a)
	(1)	
       
	
      5.03

	
      (a)
	(2)	
       
	
      5.04

	
      (b)
	 	
       
	
      10.08

	
      § 318(a)
	 	
       
	
      1.07

 

 

 

INDENTURE, dated as of November 15, 2006, between THE INTERPUBLIC GROUP OF COMPANIES, INC., a Delaware corporation (herein called the “Company”), and THE BANK OF NEW YORK, a New York banking corporation, as Trustee (herein called 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 senior unsecured debentures, notes or other evidences of indebtedness (herein called the “Securities”), to be issued in one or more series as in this Indenture provided.

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

NOW, THEREFORE, THIS INDENTURE WITNESSETH:

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

ARTICLE 1

DEFINITIONS AND OTHER PROVISIONS OF GENERAL APPLICATION 

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

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

(2)          all other terms used herein which are defined in the Trust Indenture Act, either directly or by reference therein, or defined by Commission rule and not otherwise defined herein, have the meanings assigned to them therein;

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

(4)          the word “including” (and with correlative meaning “include”) means including, without limiting the generality of, any description preceding such term; and

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

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

	
       
	
      2

 

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

“Attributable Debt” when used in connection with a Sale and Lease-Back Transaction means, at the time of determination, the lesser of (a) the fair market value of the property involved (as determined in good faith by the Company’s Board of Directors), (b) the present value of the total net amount of rent required to be paid under the lease during the remaining term thereof (including any renewal term or period for which such lease has been extended) computed by discounting from the respective due dates to such date such total net amount of rent at the rate of interest set forth or implicit in the terms of such lease or (c) if the obligation with respect to the Sale and Lease-Back Transaction constitutes an obligation that is required to be classified and accounted for as a capitalized lease for financial reporting purposes in accordance with
generally accepted accounting principles, the amount equal to the capitalized amount of such obligation determined in accordance with generally accepted accounting principles and included in the financial statements of the lessee. For purposes of the foregoing definition, rent shall not include amounts required to be paid by the lessee, whether or not designated as rent or additional rent, on account of or contingent upon maintenance and repairs, insurance, taxes, assessments, water rates and similar charges. In the case of any lease that is terminable by the lessee upon the payment of a penalty, such net amount shall be the lesser of the net amount determined assuming termination upon the first date such lease may be terminated (in which case the net amount shall also include the amount of the penalty, but no rent shall be considered as required to be paid under such lease subsequent to the first date upon which it may be so terminated) or the net amount determined assuming no such
termination.

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

“Bankruptcy Law” means Title 11, U.S. Code or any similar federal or state law for the relief of debtors.

“Board of Directors” means the board of directors of the Company; provided, however, that when the context refers to actions or resolutions of the Board of Directors, then the term “Board of Directors” shall also mean any duly authorized committee of the Board of Directors of the Company authorized to act with respect to any particular matter to exercise the power of the Board of Directors of the Company.

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

 

	
             
 	
            3
 

 

 

“Business Day,” when used with respect to any Place of Payment or any other particular location referred to in this Indenture or in the Securities of any series, means each Monday, Tuesday, Wednesday, Thursday and Friday which is not a day on which banking institutions in that Place of Payment are authorized or obligated by law or regulation to close.

“Capital Stock” means, with respect to any Person, any and all shares, interests, participations, warrants, rights, options or other equivalents (however designated) of capital stock or any other equity interest of such Person, including each class of common stock and preferred stock.

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

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

“Company Request” or “Company Order” means a written request or order signed in the name of the Company by any two Officers, at least one of whom must be its Chairman of the Board, its Chief Executive Officer, its President, its Chief Financial Officer, its Chief Accounting Officer, its Treasurer, an Assistant Treasurer or its Controller, and delivered to the Trustee.

“Consolidated Net Worth” means, at any date of determination, (a) total assets of the Company and its Subsidiaries (including, without limitation, all items that are treated as intangible in accordance with GAAP) at such date less (b) total liabilities of the Company and its Subsidiaries (including, without limitation, all deferred taxes) at such date, in each case determined on a consolidated basis and in accordance with GAAP for such period; provided, however, that the term “Consolidated Net Worth” shall not give effect to any cumulative translation adjustments (whether positive or negative) at any such date.

“Corporate Trust Office” means the office of the Trustee at which at any particular time its corporate trust business shall be principally administered, which office at the date hereof is located at The Bank of New York, 101 Barclay Street, 21 West, New York, NY 10286; Attn: Corporate Trust Trustee Administration.

“covenant defeasance” has the meaning specified in Section 13.03.

“currency unit” or “currency units” shall mean any composite currency.

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

 

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

“Defaulted Interest” has the meaning specified in Section 3.07.

“defeasance” has the meaning specified in Section 13.02.

“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, the Person designated as Depositary by the Company pursuant to Section 3.01, which must be a clearing agency registered under the Exchange Act, until a successor Depositary shall have become such pursuant to the applicable provisions of this Indenture, and thereafter “Depositary” shall mean or include each Person who is then a Depositary hereunder, and if at any time there is more than one such Person, “Depositary” shall mean the Depositary with respect to the Securities of that series.

“dollars” and “$” means lawful money of the United States of America.

“Event of Default” has the meaning specified in Section 5.01.

“Exchange Act” means the Securities Exchange Act of 1934, as amended from time to time, and the rules and regulations promulgated thereunder.

“GAAP” means such accounting principles as are generally accepted in the United States of America on the date or time of any computation required hereunder.

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

“Indebtedness” means, with respect to any Person (without duplication for indebtedness or other obligations of such Person), any indebtedness of such Person for money borrowed, whether incurred, assumed or guaranteed, and including obligations under capitalized leases.

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

“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 1.15.

“lien” and “liens” have the meaning specified in Section 10.09.

 

	
             
 	
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“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.

“New York Banking Day” has the meaning specified in Section 1.15.

“NYSE” means the New York Stock Exchange, Inc.

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

“Officers’ Certificate” means a certificate signed by any two Officers of the Company, at least one of whom must be its Chairman of the Board, its Chief Executive Officer, its President, its Chief Financial Officer, its Chief Accounting Officer, its Treasurer or its Controller, 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.

“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 5.02.

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

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

(ii)          Securities, or portions thereof, 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 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;

(iii)         Securities which have been paid pursuant to Section 3.06 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 

 

	
             
 	
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such Securities are held by a bona fide purchaser in whose hands such Securities are valid obligations of the Company; and

(iv)         Securities which have been defeased pursuant to Section 13.02;

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, or whether sufficient funds are available for redemption or for any other purpose and for the purpose of making the calculations required by Section 313 of the Trust Indenture Act, (a) the principal amount of any Original Issue Discount Security that shall be deemed to be Outstanding for such purposes shall be that portion of the principal amount thereof that could be declared to be due and payable upon the occurrence of an Event of Default and the continuation thereof pursuant to the terms of such Original Issue Discount Security as of the date of such determination, (b) the principal amount of a Security denominated in
one or more foreign currencies or currency units shall be the dollar equivalent, determined in the manner provided as contemplated by Section 3.01 on the date of original issuance of such Security, of the principal amount (or, in the case of an Original Issue Discount Security, the dollar equivalent on the date of original issuance of such Security of the amount determined as provided in (a) above) of such Security, and (c) 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 a Responsible Officer of the Trustee actually knows to be so owned shall be so disregarded. Securities so owned which have been pledged in good faith may be regarded as Outstanding if the pledgee
establishes to the satisfaction of the Trustee the pledgee’s right so to act with respect to such Securities and that the pledgee is not the Company or any 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, premium, if any, or interest on any Securities on behalf of the Company. The Company may act as Paying Agent with respect to any Securities issued hereunder.

“Permitted Liens” means (a) liens (including liens arising from sale and lease-back transactions) on property or assets acquired or held by the Company or a Restricted Subsidiary incurred to secure the payment of all or any part of the purchase price thereof or to secure any Indebtedness incurred prior to, at the time of, or within 180 days after the acquisition for the purpose of financing all or any part of the purchase price thereof, or liens (including liens arising from sale and lease-back transactions) on property or assets existing at the time of acquisition thereof by the Company or a Restricted Subsidiary, other than liens created in contemplation of such acquisition that were not incurred for the purpose of financing all or any part of the purchase price thereof, provided, however, that the lien does not extend to or cover any property or assets of any character other than the property or assets being acquired; (b) liens on property or assets of a Person, other than the Company or a Restricted Subsidiary, existing at the time of acquisition of such 

 

	
             
 	
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property and assets by the Company or a Restricted Subsidiary, provided, that the liens were not created in contemplation of such acquisition and do not extend to any property or assets of any character other than the property or assets being acquired; (c) liens affecting property or assets of a person, other than the Company or any Restricted Subsidiaries, existing at the time the person merges into or consolidates with the Company or a Restricted Subsidiary or becomes a Restricted Subsidiary or at the time of sale, lease or other disposition of the property or assets as an entirety or substantially as an entirety to the Company or a Restricted subsidiary, provided, however, that the liens were not created in contemplation of the merger, consolidation or acquisition and
do not extend to any property or assets other than those of the person so merged into or consolidated with, or acquired by, the Company or such Restricted Subsidiary; (d) liens securing Indebtedness owing by a Restricted Subsidiary of the Company to the Company or to a Restricted Subsidiary of the Company; (e) liens existing on the date of initial issuance of the Securities of such series; (f) liens in favor of the United States of America or any State, territory or possession thereof (or the District of Columbia), or any department, agency, instrumentality or political subdivision of the United States of America or any state, territory or possession thereof (or the District of Columbia), to secure partial, progress, advance or other payments; (g) liens on any property to secure all or part of the cost of alteration, repair or improvement thereon or Indebtedness incurred to provide funds for such purpose in a principal amount not exceeding the cost of such improvements or
construction; (h) purchase money liens on personal property; (i) liens created in connection with capitalized lease obligations, but only to the extent that such liens encumber property financed by such capital lease obligation and the principal component of such capitalized lease obligation is not increased; (j) liens on property arising in connection with a securities repurchase transaction; (k) liens (including judgment liens) arising in connection with legal proceedings, taxes, fees, assessments or other governmental charges, so long as such proceedings, taxes, fees, assessments or other governmental charges are being contested in good faith and, in the case of judgment liens, execution thereon is stayed and for which any reserves required in accordance with generally accepted accounting principles have been established; (l) carriers’, warehousemen’s, mechanics’, landlords’, materialmens’, repairmens’ or other similar liens arising in the ordinary
course of business which are not overdue for a period of more than 90 days or are being contested in good faith by appropriate proceedings diligently pursued, provided, however, that (i) any proceedings commenced for the enforcement of such liens shall have been stayed or suspended within 30 days of the commencement thereof and (ii) provision for the payment of such liens has been made on the books of the Company to the extent required by generally accepted accounting principles; (m) easements, rights-of-way, zoning restrictions and other similar encumbrances incurred in the ordinary course of business which, in the aggregate, are not substantial in amount, and which do not in any case materially detract from the value of the property subject thereto or interfere with the ordinary conduct of the business of the Company or any Restricted Subsidiary; (n) pledges or deposits to secure
obligations under workers’ compensation laws or other similar legislation (other than in respect of employee benefit plans subject to the Employee Retirement Security Act of 1974, as amended) or to secure public or statutory obligations; (o) liens securing the performance of, or payment in respect of, bids, tenders, government contracts (other than for the 

 

	
             
 	
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repayment of borrowed money), surety and appeal bonds and other obligations of a similar nature incurred in the ordinary course of business; (p) any interest or title of a lessor or sublessor and any restriction or encumbrance to which the interest or title of such lessor or sublessor may be subject that is incurred in the ordinary course of business; and (q) any extension, renewal, refinancing or replacement (or successive extensions, renewals or replacements), in whole or in part, of any lien referred to in the foregoing clauses (a) to (q), inclusive; provided, however, that any lien permitted by any of the foregoing clauses (a) through (q) shall not extend to or cover any property of the Company or such Restricted Subsidiary, as the case may be, other than the property specified in such clauses and improvements thereto.

“Person” means any individual, corporation, partnership, joint venture, association, limited liability company, joint-stock company, trust, 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 the place or places where the principal of (and premium, if any) and interest on the Securities of that series are payable as specified as contemplated by Section 3.01.

“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 3.06 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 of any series 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 of any series to be redeemed, means the price at which it is to be redeemed pursuant to this Indenture.

“Registered Security” means any Security issued hereunder and registered in the Security Register.

“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 3.01.

“Required Currency” has the meaning specified in Section 1.15.

“Responsible Officer,” shall mean, when used with respect to the Trustee, any officer within the corporate trust department of the Trustee, including any vice president, assistant vice president, assistant secretary, assistant treasurer, trust officer or any other officer of the Trustee who customarily performs functions similar to those performed by the Persons who at the time shall be such officers, respectively, or to whom any corporate trust matter is referred because of such person’s knowledge of and familiarity with the 

 

	
             
 	
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particular subject and who shall have direct responsibility for the administration of this Indenture.

“Restricted Subsidiary” means any Subsidiary, including its Subsidiaries, which meets any of the following conditions: (a) the Company’s and its other Subsidiaries’ investments in and advances to the Subsidiary exceed ten percent of the total assets of the Company and its Subsidiaries consolidated as of the end of the most recently completed fiscal year (for a proposed business combination to be accounted for as a pooling of interests, this condition is also met when the number of shares of common stock exchanged or to be exchanged by the Company exceeds ten percent of the total number of shares of its common stock outstanding at the date the combination is initiated); or (b) the Company’s and its other Subsidiaries’ proportionate share of the total assets (after intercompany eliminations) of the Subsidiary exceeds ten percent of the
total assets of the Company and its subsidiaries consolidated as of the end of the most recently completed fiscal year; or (c) the Company’s and its other Subsidiaries’ equity in the income from continuing operations before income taxes, extraordinary items and cumulative effect of a change in accounting principle of the Subsidiary exceeds ten percent of such income of the Company and its subsidiaries consolidated for the most recently completed fiscal year.

“Sale and Lease-Back Transaction” means any arrangement with any Person providing for the leasing by the Company or any Restricted Subsidiary of any assets, which assets have been or are to be sold or transferred by the Company or such Restricted Subsidiary to such Person, other than (a) any such transaction involving a lease for a term of not more than three years, (b) any such transaction between the Company and a Restricted Subsidiary or between Restricted Subsidiaries, or (c) any such transaction executed by the time of or within one year after the latest of the acquisition, the completion of construction or improvement or the commencement of commercial operation of such assets.

“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 3.05.

“Special Record Date” for the payment of any Defaulted Interest means a date fixed by the Trustee pursuant to Section 3.07.

“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, with respect to any Person, any corporation, partnership, joint venture, limited or unlimited liability company, trust or estate of which (or in which) more than fifty percent of:

 

	
             
 	
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(a)          the issued and outstanding shares of capital stock having ordinary voting power to elect directors of such corporation (irrespective of whether at the time shares of capital stock of any other class or classes of such corporation shall or might have voting power upon the occurrence of any contingency);

(b)          the interest in the capital or profits of such limited or unlimited liability company, partnership or joint venture; or

(c)          the beneficial interest in such trust or estate is at the time, directly or indirectly, owned by such Person, by such Person and one or more of its other Subsidiaries or by one or more of such Person’s other Subsidiaries.

“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 Indenture was executed; provided, however, that in the event that such Act 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. Government Obligations” means securities which are (i) direct obligations of the United States of America for the payment of which its full faith and credit is pledged or (ii) obligations of a Person controlled or supervised by and acting as an agency or instrumentality of the United States of America the timely payment of which is unconditionally guaranteed by the full faith and credit of the United States of America which, in either case, are not callable or redeemable at the option of the issuer thereof or otherwise subject to prepayment, and shall also include a depository receipt issued by a New York Clearing House bank or trust company as custodian with respect to any such U.S. Government Obligation, or a specific payment of interest on or principal of any such U.S. Government Obligation held by such custodian for the account of the holder of
a depository receipt, provided that (except as required by law) such custodian is not authorized to make any deduction from the amount payable to the holder of such depository receipt from any amount held by the custodian in respect of the U.S. Government Obligation or the specific payment of interest on or principal of the U.S. Government Obligation evidenced by such depository receipt.

“Vice President,” when used with respect to the Company or the Trustee, means any vice president, whether or not designated by a number or a word or words added before or after the title “vice president.”

SECTION 1.02.      Compliance Certificates and Opinions.  Upon any application or request by the Company to the Trustee to take any action under any provision of this Indenture, the Company shall furnish to the Trustee an Officers’ Certificate stating that 

 

	
             
 	
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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.

Every certificate or opinion with respect to compliance with a condition or covenant provided for in this Indenture 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 or not 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 1.03.      Form of Documents Delivered to Trustee.  In any case where several matters are required to be certified by, or covered by an opinion of, any specified Person, it is not necessary that all such matters be certified by, or covered by the opinion of, only one such Person, or that they be so 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 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, or in the exercise of reasonable care should know, that the certificate or opinion or representations with respect to such matters are erroneous.

Any certificate, statement or opinion of an Officer of the Company or of counsel may be based, insofar as it relates to accounting matters, upon a certificate or opinion of or representations by an accountant or firm of accountants in the employ of the Company, unless such Officer or counsel, as the case may be, knows, or in the exercise of 

 

	
             
 	
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reasonable care should know, that the certificate or opinion or representations with respect to the accounting matters upon which his or her certificate, statement or opinion is based are erroneous.

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

SECTION 1.04.      Acts of Holders.  (a)  Any request, demand, authorization, direction, notice, consent, waiver or other action provided by this Indenture to be given or taken by Holders may be embodied in and evidenced by one or more instruments of substantially similar tenor signed by such Holders in person or by agents duly appointed in writing; and, except as herein otherwise expressly provided, such action shall become effective when such instrument or instruments are delivered to the Trustee and, where it is hereby expressly required, to the Company. Such instrument or instruments (and the action embodied therein and evidenced thereby) are herein sometimes referred to as the “Act” of the Holders signing such instrument or
instruments. Proof of execution of any such instrument or of a writing appointing any such agent shall be sufficient for any purpose of this Indenture and (subject to Section 6.01) conclusive in favor of the Trustee and the Company, 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 of Registered Securities 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, whether or not notation of such action is made upon such Security.

(e)          If the Company shall solicit from the Holders any request, demand, authorization, direction, notice, consent, waiver or other Act, the Company may, at its option, by or pursuant to a Board Resolution, fix in advance a record date for the determination of Holders entitled to give such request, demand, authorization, direction, notice, consent, waiver or other Act, but the Company shall have no obligation to do so, provided that the Company may not set a record date for, and the provisions of this 

 

	
             
 	
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paragraph shall not apply with respect to, the giving or making of any notice, declaration, request or direction referred to in the immediately following paragraph. If such a record date is fixed, such request, demand, authorization, direction, notice, consent, waiver or other Act may be given before or after such record date, but only the Holders of record at the close of business on such record date shall be deemed to be Holders for the purposes of determining whether Holders of the requisite proportion of Outstanding Securities have authorized or agreed or consented to such request, demand, authorization, direction, notice, consent, waiver or other Act, and for that purpose the Outstanding Securities shall be computed as of such record date; provided that no such authorization, agreement or consent by the Holders on such record date shall be deemed effective
unless it shall become effective pursuant to the provisions of this Indenture not later than six months after the record date.

(f)           The Trustee shall set a record date, which shall not be more than 15 days prior to the date of commencement of solicitation of such action contemplated by this section 1.04(f), for the purpose of determining the Holders of Securities of any series entitled to join in the giving or making of (i) any Notice of Default, (ii) any declaration of acceleration referred to in Section 5.02, (iii) any direction referred to in Section 5.12, (iv) any request to institute proceedings referred to in Section 5.07(2), or (v) any waiver of past defaults pursuant to Section 5.13, in each case with respect to Securities of such series. If such a record date is fixed pursuant to this paragraph, the relevant action may be taken or given before or after such record date, but only the Holders of record at
the close of business on such record date shall be deemed to be holders of Securities of a series for the purpose of determining whether Holders of the requisite proportion of Outstanding Securities of such series have authorized or agreed or consented to such action, and for that purpose the Outstanding Securities of such series shall be computed as of such record date; provided that no such action by Holders on such record date shall be deemed effective unless it shall become effective pursuant to the provisions of this Indenture not later than six months after the record date. Nothing in this paragraph shall be construed to prevent the Trustee from setting a new record date for any action for which a record date has been set pursuant to this paragraph (whereupon the record date previously set shall automatically and with no action by any Person be canceled and of no effect), and nothing in this paragraph shall be construed to render
ineffective any action taken by Holders of the requisite principal amount of Outstanding Securities of the relevant series on the date such action is taken. Promptly after any record date is set pursuant to this paragraph, the Trustee, at the Company’s expense, shall cause notice of such record date and the proposed action by Holders to be given to the Company in writing and to each Holder of Securities of the relevant series in the manner set forth in Section 1.06.

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

(a)          the Trustee by any Holder or by the Company shall be sufficient for every purpose hereunder if made, given, furnished or filed in writing to or with the Trustee at 

 

	
             
 	
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The Bank of New York, 101 Barclay Street, 21st Floor West, New York, New York 10286, Attention: Corporate Trust Trustee Administration, or

(b)          the Company by the Trustee or by any Holder shall be sufficient for every purpose hereunder (unless otherwise herein expressly provided) if in writing and mailed, first-class postage prepaid, to the Company addressed to it at The Interpublic Group of Companies, Inc., 1114 Avenue of the Americas, New York, New York 10036, Attention: Secretary, or at any other address previously furnished in writing to the Trustee by the Company.

SECTION 1.06.      Notice to Holders; Waiver.  Where this Indenture or any Security provides for notice to Holders of any event, such notice shall be deemed sufficiently given (unless otherwise herein or in such Security 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 or the validity of the proceedings to which such notice relates.

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.

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

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

SECTION 1.07.      Conflict with Trust Indenture Act.  If any provision hereof limits, qualifies or conflicts with another provision hereof which is required to be included or deemed included in this Indenture by any of the provisions of the Trust Indenture Act, such required 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, such provision of the Trust Indenture Act shall be deemed to apply to this Indenture as so modified or shall be excluded, as the case may be.

SECTION 1.08.      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.

 

	
             
 	
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SECTION 1.09.      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 1.10.      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 1.11.      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 1.12.      Governing Law.  This Indenture and the Securities shall be governed by and construed in accordance with the laws (other than the choice of law provisions) of the State of New York.

SECTION 1.13.      Legal Holidays.  In any case where any Interest Payment Date, Redemption Date, sinking fund payment date, Stated Maturity or 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 in the Securities of any series which specifically states that such provision shall apply in lieu of this Section) payment of interest or principal (and premium, if any) need not be made at such Place of Payment on such date, but may be made on the next succeeding Business Day or on such other day as may be set out in the Officers’ Certificate pursuant to Section 3.01 at such Place of Payment with the same force and effect as if made on the Interest Payment Date,
Redemption Date, sinking fund payment date, Stated Maturity or Maturity, as the case may be, provided that no interest shall accrue on the amount so payable for the period from and after such Interest Payment Date, Redemption Date, sinking fund payment date, Stated Maturity or Maturity, as the case may be, if payment is made on such next succeeding Business Day or other day set out in such Officers’ Certificate.

SECTION 1.14.      No Recourse Against Others.  A director, officer, employee or stockholder, as such, of the Company shall not have any liability for any obligations of the Company under the Securities or this Indenture or for any claim based on, in respect of or by reason of such obligations or their creation. Each Securityholder, by accepting a Security, waives and releases all such liability. Such waivers and releases are part of the consideration for the issuance of the Securities.

SECTION 1.15.      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 premium or interest, if any, 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 

 

	
             
 	
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procedures the Trustee could purchase in the City of New York the Required Currency with the Judgment Currency on the New York Banking Day preceding that on which a final unappealable judgment is given 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 (whether or not entered in accordance with subsection (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. For purposes of the foregoing, “New York Banking Day” means any day except a Saturday, Sunday or a legal holiday in the City of New York or a day on which banking institutions in the City of New York are authorized or required by law or executive order to close.

ARTICLE 2

SECURITY FORMS

SECTION 2.01.      Forms Generally.  The Securities of each series shall be in substantially the form set forth in this Article, or in such other form as shall be established by or pursuant to a Board Resolution or in one or more indentures supplemental hereto, in each case with such appropriate insertions, omissions, substitutions and other variations as are required or permitted by this Indenture, and may have such letters, numbers or other marks of identification and such legends or endorsements placed thereon as may be required to comply with the rules of any securities exchange or as may, consistently herewith, be determined by the Officers executing such Securities, as evidenced by their execution of the Securities. 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 the Secretary or an Assistant Secretary of the Company and delivered to the Trustee at or prior to the delivery of the Company Order contemplated by Section 3.03 for the authentication and delivery of such Securities.

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 of such Securities.

SECTION 2.02.      Form of Face of Security.

[If the Security is an Original Issue Discount Security, insert— FOR PURPOSES OF SECTION 1272 OF THE INTERNAL REVENUE CODE OF 1986, AS AMENDED (THE “CODE”), THE AMOUNT OF ORIGINAL ISSUE DISCOUNT (AS DEFINED IN SECTION 1273(a)(1) OF THE CODE AND TREASURY REGULATION SECTION 1.1273-1(a)) WITH RESPECT TO THIS SECURITY IS ________, THE ISSUE DATE (AS DEFINED IN SECTION 1275(a)(2) OF THE CODE AND TREASURY 

 

	
             
 	
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REGULATION SECTION 1.1273-2(a)(2)) OF THIS SECURITY IS ________, THE ISSUE PRICE (AS DEFINED IN SECTION 1273(b) OF THE CODE AND TREASURY REGULATION 1.1273-2(a)) OF THIS SECURITY IS ________ AND THE YIELD TO MATURITY (AS DEFINED IN TREASURY REGULATION SECTION 1.1272-1(b)) OF THIS SECURITY IS ________ — or insert other legend required by the Internal Revenue Code and the regulations thereunder.

THE INTERPUBLIC GROUP OF COMPANIES, INC.

.............................................

  

	 	CUSIP No. _________
	
            No. _______
 	
            [$]_________
 

The Interpublic Group of Companies, Inc., a corporation duly organized and existing under the laws of Delaware (herein called the “Company,” which term includes any successor corporation under the Indenture hereinafter referred to), for value received, hereby promises to pay to _______________, or registered assigns, the principal sum of _______________ [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 [if other than semi-annual payments, insert frequency of payments and payment dates], commencing _____________________, at [if the
Security is to bear interest at a fixed rate, insert— the rate of _____% per annum], [if the Security is to bear interest at a variable or floating rate and if determined with reference to an index, refer to description of index below] until the principal hereof is paid or made available for payment [if applicable insert—, and (to the extent that the payment of such interest shall be legally enforceable) at the rate of _____% per annum on any overdue principal and premium and on any overdue installment of interest]. 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 __________ (whether or not 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].

 

	
             
 	
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[If the Securities are floating or adjustable rate securities with respect to which the principal of or any premium or interest may be determined with reference to an index, insert the text of the floating or adjustable rate provision.]

[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 _____% 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.]

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 dollars [if applicable, insert—; provided, however, that at the option of the Company, payment of interest may be made by check mailed to the address of the Person entitled thereto as such address shall appear in the Security Register].

[If applicable, insert— So long as all of the Securities of this series are represented by Securities in global form, the principal of, premium, if any, and interest, if any, on this global Security shall be paid in same day funds to the Depositary, or to such name or entity as is requested by an authorized representative of the Depositary. If at any time the Securities of this series are no longer represented by global Securities and are issued in definitive certificated form, then the principal of, premium, if any, and interest, if any, on each certificated Security at Maturity shall be paid in same day funds to the Holder upon surrender of such certificated Security at the Corporate Trust Office of the Trustee, or at such other place or places as may be designated in or pursuant to the Indenture, provided that such certificated Security
      is surrendered to the Trustee, or at such other place or places as may be designated in or pursuant to the Indenture, provided that such certificated Security is surrendered to the Trustee, acting as Paying Agent, in time for the Paying Agent to make such payments in such funds in accordance with its normal procedures. Payments of interest with respect to such certificated Securities other than at Maturity may, at the option of the Company, be made by check mailed to the address of the Person entitled thereto as it appears on the Security Register on the relevant Regular or Special Record Date or by wire transfer in same day funds to such account as may have been appropriately designated to the Paying Agent by such Person in writing not later than such relevant Regular or Special Record Date.]

 

	
             
 	
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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 under its corporate seal.

THE INTERPUBLIC GROUP OF COMPANIES, INC.

By:    _________________________________

Attest:

	
            _________________________
 	
            [SEAL]
 
	 	2006

 

SECTION 2.03.      Form of Reverse of Security.

This Security is one of a duly authorized issue of securities of the Company (herein called the “Securities”), issued and to be issued in one or more series under an Indenture, dated as of _______________, 2006 (herein called the “Indenture”), between the Company and ____________________, 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.
  This Security is one of the series designated on the face hereof [, limited in aggregate principal amount to $__________].

[If applicable, insert— The Securities of this series are subject to redemption upon not less than 30 nor more than 60 days’ notice by first class 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 __________, _____], 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,

 

	
             
 	
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	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 and unpaid 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 30 nor more than 60 days’ notice by first class 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 any time [on or after __________], as a whole or in part, at the election of the Company, at the Redemption Prices for redemption otherwise than through operation of the sinking fund (expressed as percentages of the principal amount) set forth in the table below:

If redeemed during a 12-month period beginning _________________ of the years indicated,

	Redemption Price
      for Redemption

      Through Operation

      of the

      Sinking Fund
    
	Redemption Price

      for Redemption

      Otherwise Than

      Through Operation

      of the

      Sinking Fund
    
	Year
    

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 and unpaid 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.]

 

	
             
 	
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[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.]

[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—in the inverse order in which they become due.]

[In the event of redemption of this Security in part only, a new Security or Securities of this series for the unredeemed portion hereof will be issued in the name of the Holder hereof upon the cancellation hereof.]

[If the Security is not an Original Issue Discount Security, insert— If any 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 —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 (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.]

[This Security is subject to defeasance as described in the Indenture.]

The Indenture may be modified by the Company and the Trustee without consent of any Holder with respect to certain matters as described in the Indenture. In addition, 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 a majority 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

 

	
             
 	
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 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 bind such Holder and all future Holders of this Security and of any Security issued upon the registration of transfer hereof or in exchange hereof or in lieu hereof, whether or not 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 and rate, and in the coin or currency, herein prescribed.

As provided in the Indenture and subject to certain limitations therein set forth, the transfer of this Security is registrable in the Security Register, upon surrender of this Security for registration of transfer at the office or agency of the Company in any place where the principal of (and premium, if any) and interest on this Security are payable, 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, of authorized denominations and for the same Stated Maturity and 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 [$1,000] 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 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.

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, whether or not this Security be overdue, and neither the Company, the Trustee nor any such agent shall be affected by notice to the contrary.

The Indenture imposes certain limitations on the ability of the Company to, among other things, merge or consolidate with any other Person or sell, assign, transfer or lease all or substantially all of its properties or assets [If other covenants are applicable pursuant to the provisions of Section 3.01, insert here]. All such covenants and limitations are subject to a number of important qualifications and exceptions. The Company must report periodically to the Trustee on compliance with the covenants in the Indenture.

A director, officer, employee or stockholder, as such, of the Company shall not have any liability for any obligations of the Company under this Security or the Indenture

 

	
             
 	
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 or for any claim based on, in respect of or by reason of, such obligations or their creation. Each Holder, by accepting a Security, waives and releases all such liability. The waiver and release are part of the consideration for the issuance of this Security.

[If applicable, insert— Pursuant to a recommendation promulgated by the Committee on Uniform Security Identification Procedures (“CUSIP”), the Company has caused CUSIP numbers to be printed on the Securities of this series as a convenience to the Holders of the Securities of this series. No representation is made as to the correctness or accuracy of such numbers as printed on the Securities of this series and reliance may be placed only on the other identification numbers printed hereon.]

All terms used in this Security which are defined in the Indenture shall have the meanings assigned to them in the Indenture.

This Security shall be governed by and construed in accordance with the laws (other than the choice of law provisions) of the State of New York.

ASSIGNMENT FORM

To assign this Security, fill in the form below: (I) or (we) assign and transfer this Security to

_____________________________________________________

(Insert assignee’s social security or tax I.D. number)

_____________________________________________________

_____________________________________________________

_____________________________________________________

_____________________________________________________

(Print or type assignee’s name, address and zip code)

and irrevocably appoint ___________________________________ agent to transfer this Security on the books of the Company. The agent may substitute another to act for him.

	
            Dated: __________

             
 	
            Your Signature:   ___________________________________

            (Sign exactly as your name appears on the other side of this Security)            
 
	 	__________________________________________
	Signature Guaranty:	[Signatures must be guaranteed by an “eligible guarantor institution” meeting the requirements of the Transfer Agent, which requirements will include membership or participation in STAMP or such other “signature guarantee program” as may be determined by the Transfer Agent in addition to, or in substitution for, STAMP, all in accordance with the Exchange Act.]

 

Social Security Number or

Taxpayer Identification Number: ___________________________________________  

 

	
             
 	
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SECTION 2.04.      Form of Trustee’s Certificate of Authentication.  The Trustee’s certificate of authentication shall be in substantially the following form:

  Dated: __________

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

	
             
 	
  THE BANK OF NEW YORK                                                   
 
	 	As Trustee
	 
	By 
	______________________________________
	 	Authorized Signatory
	 

SECTION 2.05.      Securities in Global Form.  If Securities of or within a series are issuable in whole or in part in global form, then any such Security of such series may provide that it shall represent the aggregate or a specified amount of the Outstanding Securities of such series from time to time endorsed thereon and may also provide that the aggregate amount of Outstanding Securities of such series represented thereby may from time to time be reduced or increased to reflect exchanges. Any endorsement of a Security in global form to reflect the amount, or any increase or decrease in the amount, or changes in the rights of Holders, 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 the Company Order to be delivered to the Trustee pursuant to Section 3.03 or Section 3.04. Subject to the provisions of Section 3.03 and, if applicable, Section 3.04, the Trustee shall deliver and redeliver any Security in permanent global form in the manner and upon instructions given by the Person or Persons specified therein or in the applicable Company Order. If a Company Order pursuant to Section 3.03 or 3.04 has been, or simultaneously is, delivered, any instructions by the Company with respect to endorsement or delivery or redelivery of a Security in global form shall be in writing but need not comply with Section 1.02 and need not be accompanied by an Opinion of Counsel.

The provisions of the last paragraph of Section 3.03 shall apply to any Security represented by a Security in global form if such Security was never issued and sold by the Company and the Company delivers to the Trustee the Security in global form together with written instructions (which need not comply with Section 1.02 and need not be accompanied by an Opinion of Counsel) with regard to the reduction in the principal amount of Securities represented thereby.

Notwithstanding the provisions of Sections 2.01 and 3.07, unless otherwise specified as contemplated by Section 3.01, payment of principal of and premium, if any, and interest on any Security in permanent global form shall be made to the Person or Persons specified therein.

 

	
             
 	
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SECTION 2.06.      Form of Legend for the Securities in Global Form.  Any Security in global form authenticated and delivered hereunder shall bear a legend in substantially the following form, or in such other form as may be necessary or appropriate to reflect the arrangements with or to comply with the requirements of any Depositary:

	 	“This Security is in global form within the meaning of the Indenture hereinafter referred to and is registered in the name of a Depositary or a nominee of a Depositary. Unless and until it is exchanged in whole or in part for Securities in certificated form in the limited circumstances described in the Indenture, this Security may not be transferred except as a whole by the Depositary to a nominee of the Depositary or by a nominee of the Depositary to the Depositary or another nominee of the Depositary or by the Depositary or any such nominee to a successor Depositary or a nominee of such successor Depositary.”	 

ARTICLE 3

THE SECURITIES

SECTION 3.01.      Amount Unlimited; Issuable in Series.  The aggregate principal amount of Securities which may be authenticated and delivered under this Indenture is unlimited.

The Securities may be issued from time to time in one or more series. Prior to the issuance of Securities of any series, there shall be established in or pursuant to (i) a Board Resolution, (ii) action taken pursuant to a Board Resolution and (subject to Section 3.03) set forth, or determined in the manner provided, in an Officers’ Certificate, or (iii) one or more indentures supplemental hereto:

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

(2)          the purchase price, denomination and 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 Sections 3.04, 3.05, 3.06, 9.06 or 11.07);

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

(4)          the rate or rates at which the Securities of the series shall bear interest, if any, or the method of calculating such rate or rates of interest, the date or dates from which such interest shall accrue or the method by which such

 

	
             
 	
            26
 

 

 

 date or dates shall be determined, the Interest Payment Dates on which any such interest shall be payable and the Regular Record Date, if any, for the interest payable on any Interest Payment Date;

(5)          the place or places where the principal of, premium, if any, and interest, if any, on Securities of the series shall be payable;

(6)          the place or places where the Securities may be exchanged or transferred;

(7)          the period or periods within which, the price or prices at which, the currency or currencies (including currency unit or units) in which, and the other terms and conditions upon which Securities of the series may be redeemed, in whole or in part, at the option of the Company, and, if other than as provided in Section 11.03, the manner in which the particular Securities of such series (if less than all Securities of such series are to be redeemed) are to be selected for redemption;

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

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

(10)       if other than U.S. dollars, the currency or currencies (including currency unit or units) in which payments of principal of, premium, if any, and interest on the Securities of the series shall or may by payable, or in which the Securities of the series shall be denominated, and the particular provisions applicable thereto;

(11)       if the payments of principal of, premium, if any, or interest on the Securities of the series are to be made, at the election of the Company or a Holder, in a currency or currencies (including currency unit or units) other than that in which such Securities are denominated or designated to be payable, the currency or currencies (including currency unit or units) in which such payments are to be made, the terms and conditions of such payments and the manner in which the exchange rate with respect to such payments shall be determined, and the particular provisions applicable thereto;

(12)       if the amount of payments of principal of, premium, if any, and interest on the Securities of the series shall be determined with reference to an index, formula or other method (which index, formula or method may be based, without limitation, on a currency or currencies (including currency unit or units) other than that in which the Securities of the series are denominated or designated 

 

	
             
 	
            27
 

 

 

to be payable), the index, formula or other method by which such amounts shall be determined;

(13)       if other than the principal amount thereof, the portion of the principal amount of Securities of the series which shall be payable upon declaration of acceleration of the Maturity thereof pursuant to Section 5.02 or the method by which such portion shall be determined;

(14)        any modifications of or additions to the Events of Default or the covenants of the Company set forth herein with respect to Securities of the series;

(15)       if either or both of Section 13.02 and Section 13.03 shall be inapplicable to the Securities of the series (provided that if no such inapplicability shall be specified, then both Section 13.02 and Section 13.03 shall be applicable to the Securities of the series);

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

(17)       if the Securities of the series shall be issued in whole or in part in global form, (i) the Depositary for such global Securities, (ii) the form of any legend in addition to or in lieu of that in Section 2.06 which shall be borne by such global Security, (iii) whether beneficial owners of interests in any Securities of the series in global form may exchange such interests for certificated Securities of such series and of like tenor of any authorized form and denomination, and (iv) if other than as provided in Section 3.05, the circumstances under which any such exchange may occur;

(18)       if the Holders of the Securities of the series may convert or exchange the Securities of the series into or for securities of the Company or of other entities or other property (or the cash value thereof), the specific terms of and period during which such conversion or exchange may be made; and

(19)        any other terms of the series (which terms shall not be inconsistent with the provisions of this Indenture, except as permitted by Section 9.01, but which may modify or delete any provision of this Indenture insofar as it applies to such series), including any terms which may be required by or advisable under the laws of the United States of America or regulations thereunder or advisable (as determined by the Company) in connection with the marketing of Securities of the series.

All Securities of any one series shall be substantially identical except as to denomination and except as may otherwise be provided (i) by a Board Resolution, (ii) by action taken pursuant to a Board Resolution and (subject to Section 3.03) set forth, or determined in the manner provided, in an Officers’ Certificate or (iii) in any such indenture supplemental hereto. All Securities of any one series need not be issued at the 

 

	
             
 	
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same time and, unless otherwise provided, a series may be reopened, without the consent of the Holders, for issuances of additional Securities of such series.

If any of the terms of the Securities of any series are established by action taken pursuant to a Board Resolution, a copy of an appropriate record of such action shall be certified by the Secretary or an Assistant Secretary of the Company and delivered to the Trustee at or prior to the delivery of the Officers’ Certificate setting forth, or providing the manner for determining, the terms of the Securities of such series, and an appropriate record of any action taken pursuant thereto in connection with the issuance of any Securities of such series shall be delivered to the Trustee prior to the authentication and delivery thereof.

SECTION 3.02.      Denominations.  The Securities of each series shall be issuable in registered form without coupons in such denominations as shall be specified as contemplated by Section 3.01. In the absence of any such 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 3.03.      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 its Chief Accounting Officer under its corporate seal reproduced thereon attested by its Secretary or one of its Assistant Secretaries. The signature of any of these officers on the Securities may be manual or facsimile. The seal of the Company may be in the form of a facsimile thereof and may be impressed, affixed, imprinted or otherwise reproduced on the Securities. Typographical and other minor errors or defects in any such reproduction of the seal or any such signature shall not affect the validity or enforceability of any Security that has been duly authenticated
    and delivered by the Trustee.

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 make such Securities available for delivery. If the form or terms of the Securities of the series have been established in or pursuant to one or more Board Resolutions as permitted by Sections 2.01 and 3.01, in authenticating such Securities, and accepting the additional responsibilities under this Indenture in relation to such Securities, the Trustee shall be entitled to receive, and (subject to Sections 315(a) through (d) of the Trust Indenture Act) shall be fully protected in relying upon, an Opinion of Counsel stating,

 

	
             
 	
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(a)          if the form of such Securities has been established by or pursuant to a Board Resolution as permitted by Section 2.01, that such form has been established in conformity with the provisions of this Indenture;

(b)          if the terms of such Securities have been established by or pursuant to Board Resolution as permitted by Section 3.01, that such terms have been established in conformity with the provisions of this Indenture; 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 specified in such Opinion of Counsel, will constitute valid and legally binding obligations of the Company, enforceable in accordance with their terms, except to the extent enforceability may be limited by applicable bankruptcy, insolvency, reorganization, moratorium, fraudulent conveyance and other similar laws affecting the enforcement of creditors’ rights generally and by the effect of general principles of equity (regardless of whether enforceability is considered in a proceeding in equity or at law).

If such form 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, or in the written opinion of counsel to the Trustee (which counsel may be an employee of the Trustee) such authentication may not lawfully be made or would involve the Trustee in personal liability.

Notwithstanding the provisions of Section 3.01 and of the immediately 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 Board Resolution and the Officers’ Certificate otherwise required pursuant to Section 3.01 or the Company Order and Opinion of Counsel otherwise required pursuant to the second 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.

If the Company shall establish pursuant to Section 3.01 that the Securities of a series are to be issued in whole or in part in the form of one or more global Securities, then the Company shall execute and the Trustee shall, in accordance with this Section and the Company Order with respect to the authentication and delivery of such series, authenticate and deliver one or more Securities of such series in global form that (i) shall be in an aggregate amount equal to the aggregate principal amount of the Outstanding Securities of such series to be represented by such Security or Securities in global form, (ii) shall be registered in the name of the Depositary for such Security or Securities in global form or its nominee, and (iii) shall be made available for delivery by the Trustee to such Depositary or pursuant to such Depositary’s instruction.

Each Depositary designated pursuant to Section 3.01 for a Security in global form must, at the time of its designation and at all times while it serves as Depositary, be a 

 

	
             
 	
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clearing agency registered under the Exchange Act and any other applicable statute or regulation. The Trustee shall have no responsibility to determine if the Depositary is so registered. Each Depositary shall enter into an agreement with the Trustee and the Company governing the respective duties and rights of such Depositary, the Company and the Trustee with regard to Securities issued in global form.

Unless otherwise provided for in the form of Security, each Security shall be dated the date of its authentication.

No Security shall be entitled to any benefits 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 or an Authenticating Agent by manual signature, 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 cancellation as provided in Section 3.09 together with a written statement (which need not comply with Section 1.02 and need not be accompanied by an Opinion of Counsel) stating that such Security has never been issued and sold by the Company, for all purposes of this Indenture such Security shall be deemed never to have been authenticated and delivered hereunder and shall not be entitled to the benefits of this Indenture.

SECTION 3.04.      Temporary Securities.  Pending the preparation of definitive Securities of any series, the Company may execute, and upon Company Order the Trustee shall authenticate and make available for delivery, temporary Securities of such series 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.

In the case of Securities of any series, such temporary Securities may be in global form, representing all or a portion of the Outstanding Securities of such series.

Except in the case of temporary Securities in global form (which shall be exchanged in accordance with the provisions thereof), 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 make available for delivery in exchange therefor a like principal amount of definitive Securities 

 

	
             
 	
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of the same series of authorized denominations and of like tenor. 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 3.05.      Registration, Registration of Transfer and Exchange.  The Company shall cause to be kept at the Corporate Trust Office of the Trustee or in any office or agency to be maintained by the Company in accordance with Section 10.02 in a Place of Payment a register (the register maintained in such office and in any other office or agency of the Company in a Place of Payment being herein sometimes collectively 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 registration of transfers of Securities. The Trustee is hereby appointed “Security Registrar” for the purpose of registering Securities and transfers of Securities as herein provided.

Upon surrender for registration of transfer of any Security of any series at the office or agency of the Company in a Place of Payment for that series, the Company shall execute, and the Trustee shall authenticate and make available for delivery, in the name of the designated transferee or transferees, one or more new Securities of the same series, of any authorized denominations and of a like aggregate principal amount and Stated Maturity.

At the option of the Holder, Securities of any series (except a Security in global form) may be exchanged for other Securities of the same series, of any authorized denominations and of a like aggregate principal amount and Stated Maturity, 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 make available for delivery, the Securities which the Holder making the exchange is entitled to receive.

Each Security issued in global form authenticated under this Indenture shall be registered in the name of the Depositary designated for such series or a nominee thereof and delivered to such Depositary or a nominee thereof or custodian therefor, and each such Security issued in global form shall constitute a single Security for all purposes of this Indenture.

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

If at any time the Depositary for the Securities of a series notifies the Company that it is unwilling or unable to continue as Depositary for the Securities of such series or defaults in the performance of its duties as Depositary or if at any time 

 

	
             
 	
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the Depositary for the Securities of such series shall no longer be eligible under Section 3.03, the Company shall appoint a successor Depositary with respect to the Securities of such series. If a successor Depositary for the Securities of such series is not appointed by the Company within 90 days after the Company receives such notice or becomes aware of such ineligibility, the Company’s selection pursuant to Section 3.01(b)(18) shall no longer be effective with respect to the Securities of such series and the Company shall execute, and the Trustee, upon receipt of a Company Order for the authentication and delivery of certificated
Securities of such series of like tenor, shall authenticate and deliver Securities of such series of like tenor in certificated form, in authorized denominations and in an aggregate principal amount equal to the principal amount of the Security or Securities of such series of like tenor in global form in exchange for such Security or Securities in global form.

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

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

(i)           to each Person specified by such Depositary a new certified Security or Securities of the same series of like tenor, of any authorized denomination as requested by such Person in aggregate principal amount equal to and in exchange for such Person’s beneficial interest in the Security in global form; and

(ii)          to such Depositary a new Security in global form of like tenor in a denomination equal to the difference, if any, between the principal amount of the surrendered Security in global form and the aggregate principal amount of certificated Securities delivered to Holders thereof.

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

 

  	
         
	
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Whenever any Securities are 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.

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.

Unless otherwise provided in the Securities to be transferred or exchanged, 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 3.04, 9.06 or 11.07 not involving any transfer.

If the Securities of any series (or of any series and specified tenor) are to be redeemed in part, the Company shall not be required (i) to issue, register the transfer of or exchange Securities of such 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 11.03 and ending at the close of business on the day of such mailing, or (ii) 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.

The foregoing provisions relating to registration, transfer and exchange may be modified, supplemented or superseded with respect to any series of Securities by a Board Resolution or in one or more indentures supplemental hereto.

SECTION 3.06.      Mutilated, Destroyed, Lost and Stolen Securities. If any mutilated Security is surrendered to the Trustee, 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 (i) evidence to their satisfaction of the destruction, loss or theft of any Security and (ii) 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 written request the Trustee shall authenticate and deliver, in lieu of any such

 

  	
         
	
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 destroyed, lost or stolen 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, whether or not 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 3.07.      Payment of Interest; Interest Rights Preserved. Interest on any Security which is payable, and is punctually paid or duly provided for, on any Interest Payment Date shall be paid to the Person in whose name that Security (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 (1) or (2) below:

(1)          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 (which shall be not less than 25 days after the receipt by the Trustee of such notice, unless such Trustee shall consent to an earlier date), 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 

 

  	
         
	
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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 Defaulted Interest and the Special Record Date therefor having been so mailed, such Defaulted Interest shall be paid to the Pers

ons 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 (2).

(2)          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 (2), 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 3.08.      Persons Deemed Owners. Prior to due presentment of a 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 such Security is registered as the owner of such Security for the purpose of receiving payment of principal of, premium, if any, and (subject to Sections 3.05 and 3.07) interest on such Security and for all other purposes whatsoever, whether or not such Security be overdue, and neither the Company, the Trustee nor any agent of the Company or the Trustee shall be affected by notice to the contrary.

None of the Company, the Trustee or any agent of the Company or the Trustee shall have any responsibility or liability for any aspect of the records relating to or payments made on account of beneficial ownership interest of a Security in global form, or for maintaining, supervising or reviewing any records relating to such beneficial ownership interest. Notwithstanding the foregoing, with respect to any Security in global form, nothing herein shall prevent the Company or the Trustee or any agent of the Company or the Trustee, from giving effect to any written certification, proxy or other authorization furnished by any Depositary (or its nominee), as a Holder, with respect to such Security in global form or impair, as between such Depositary and owners of beneficial interests in such Security in global form, the operation of customary practices

 

  	
         
	
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 governing the exercise of the right of such Depositary (or its nominee) as holder of such Security in global form.

SECTION 3.09.      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 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 shall be held by the Trustee and disposed of in accordance with the Trust

ee’s standard procedures.

SECTION 3.10.      Computation of Interest. Except as otherwise specified as contemplated by Section 3.01 for Securities of any series, interest on the Securities of each series shall be computed on the basis of a year comprised of twelve 30-day months.

SECTION 3.11.      CUSIP Number. The Company in issuing Securities of any series may use a “CUSIP” number, and if so, the Trustee may use the CUSIP number in notices of redemption or exchange as a convenience to Holders of such series; provided, that any such notice may state that no representation is made as to the correctness or accuracy of the CUSIP number printed on the notice or on the Securities of such series, and that reliance may be placed only on the other identification numbers printed on the Securities, and any such redemption shall not be affected by any defect in or omission of such numbers. The Company will promptly notify the Trustee of any change in the CUSIP number of any series of Securities.

SECTION 3.12.      Wire Transfers. Notwithstanding any other provision to the contrary in this Indenture, the Company may make any payment of moneys required to be deposited with the Trustee on account of principal of, or premium, if any, or interest on the Securities (whether pursuant to optional or mandatory redemption payments, interest payments or otherwise) by wire transfer of immediately available funds to an account designated by the Trustee on or before the date and time such moneys are to be paid to the Holders of the Securities in accordance with the terms hereof.

SECTION 3.13.      Original Issue Discount. The Company shall file with the Trustee promptly at the end of each calendar year (i) a written notice specifying the amount of original issue discount (including daily rates and accrual periods) accrued on Outstanding Securities as of the end of such year (ii) such other specific information relating to such original issue discount as may then be relevant under the Internal Revenue Code of 1986, as amended from time to time.

 

  	
         
	
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ARTICLE 4

SATISFACTION AND DISCHARGE

SECTION 4.01.      Satisfaction and Discharge of Indenture. This Indenture shall cease to be of further effect (except as to any surviving rights of registration of transfer or exchange of Securities and replacement of such Securities which may have been lost, stolen or mutilated as herein expressly provided for or in the form of Security for such series), when the Trustee, upon Company Request and at the expense of the Company, shall execute proper instruments acknowledging satisfaction and discharge of this Indenture, when

(1)          either (a) all Securities theretofore authenticated and delivered (other than (i) Securities which have been destroyed, lost or stolen and which have been replaced or paid as provided in Section 3.06 and (ii) Securities for whose payment money has theretofore been deposited in trust or segregated and held in trust by the Company and thereafter repaid to the Company or discharged from such trust, as provided in Section 10.08) have been delivered to the Trustee for cancellation; or (b) all such Securities not theretofore delivered to the Trustee for cancellation (i) have become due and payable, or (ii) will become due and payable at their Stated Maturity within one year, or (iii) are to be called for redemption within one year under arrangements satisfactory to the Trustee for the giving of notice of redemption by

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

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

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

Notwithstanding the satisfaction and discharge of this Indenture, the obligations of the Company to the Trustee under Section 6.07, the obligations of the Company to any Authenticating Agent under Section 6.14 and, if money shall have been deposited with the Trustee pursuant to subclause (B) of clause (1) of this Section, the obligations of the Trustee under Section 402 and the last paragraph of Section 10.08 shall survive.

SECTION 4.02.      Application of Trust Money. Subject to the provisions of the last paragraph of Section 10.08, all money deposited with the Trustee pursuant to Section 401 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, 

 

  	
         
	
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to the Persons entitled thereto, of the principal (and premium, if any) and interest for whose payment such money has been deposited with or received by the Trustee, but such money need not be segregated from other funds except to the extent required by law.

ARTICLE 5

REMEDIES

SECTION 5.01.      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 to 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):

(1)          the Company defaults in the payment of interest on any Security of that series when such interest becomes due and payable and the default continues for a period of 30 days; or

(2)          the Company defaults in the payment of the principal of, or premium, if any, on any Security of that series when the same becomes due and payable at Maturity or on redemption or otherwise; or

(3)          the Company fails to deposit any sinking fund payment, when and as due by the terms of a Security of that series; or

(4)          the Company fails to observe or perform in any material respect any of its other covenants, agreements or warranties in the Securities of that series or this Indenture (other than a covenant, agreement or warranty 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 the failure to observe or perform continues for the period and after the notice specified in the last paragraph of this Section; or

(5)          an event of default, as defined in any mortgage, indenture, or instrument under which there may be issued, or by which there may be secured or evidenced, any Indebtedness of the Company (including Securities of another series) (other than the Securities of such series) (whether such Indebtedness now exists or shall hereafter be created or incurred) shall occur and shall result in Indebtedness becoming or being declared due and payable prior to the date on which it would otherwise become due and payable, and such default in payment is not cured or such acceleration shall not be rescinded or annulled within 10 days after written notice to the Company from the Trustee or to the Company and to the Trustee from the Holders of at least twenty-five percent in aggregate principal amount of the Outstanding Securities of t

hat series specifying such event of default and requiring the Company to cure such default in payment or cause such acceleration to be rescinded or annulled and stating that such notice is a “Notice of Default” hereunder; provided, however, that it shall not be an Event of Default if the principal amount of Indebtedness which is not paid at maturity or the maturity of which is accelerated is equal to or less than $20,000,000; provided further 

 

  	
         
	
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that if, prior to a declaration of acceleration of the maturity of the Securities of that series or the entry of judgment in favor of the Trustee in a suit pursuant to Section 5.03, such default shall be remedied or cured by the Company or waived by the holders of such Indebtedness, then the Event of Default hereunder by reason thereof shall be deemed likewise to have been thereupon remedied, cured or waived without further action upon the part of either the Trustee or any of the Holders of the Securities of that series, and provided further, that, subject to Sections 6.01 and 6.02, the Trustee shall not be charged with knowledge of any such default unless written notice of such default shall have been given to the Trustee by the Company, by a holder or an agent of a holder of any such Indebtedness, by the trustee then acting under any inde

nture or other instrument under which such default shall have occurred, or by the Holders of at least five percent in aggregate principal amount of the Securities of that series at the time outstanding; or

(6)          the Company or any of its Restricted Subsidiaries pursuant to or within the meaning of any Bankruptcy Law (a) commences a voluntary case or proceeding under any Bankruptcy Law with respect to itself, (B) consents to the entry of a judgment, decree or order for relief against it in an involuntary case or proceeding under any Bankruptcy Law, (C) consents to or acquiesces in the institution of bankruptcy or insolvency proceedings against it, (D) applies for, consents to or acquiesces in the appointment of or taking possession by a Custodian of it or for all or substantially all of its property, (E) makes a general assignment for the benefit of its creditors or (F) takes any corporate action in furtherance of or to facilitate, conditionally or otherwise, any of the foregoing; or

(7)          (i) a court of competent jurisdiction enters a judgment, decree or order for relief in an involuntary case or proceeding under any Bankruptcy Law which shall (a) approve as properly filed a petition seeking reorganization, arrangement, adjustment or composition in respect of the Company or any of its Restricted Subsidiaries, (B) appoint a Custodian of the Company or any of its Restricted Subsidiaries or for all or substantially all of its property or (C) order the winding-up or liquidation of affairs of the Company or any of its Restricted Subsidiaries, and such judgment, decree or order shall remain unstayed and in effect for a period of 90 consecutive days; or (ii) any bankruptcy or insolvency petition or application is filed, or any bankruptcy or insolvency proceeding is commenced, against the Company or any o

f its Restricted Subsidiaries and such petition, application or proceeding is not dismissed within 60 days; or (iii) a warrant of attachment is issued against any material portion of the property of the Company or any of its Restricted Subsidiaries which is not released within 60 days of service; or

(8)          any other Event of Default provided with respect to Securities of that series.

A Default under clause (4) above is not an Event of Default until the Trustee or the Holders of at least twenty-five percent in aggregate principal amount of the Outstanding Securities of that series notify the Company of the Default and the Company does not cure the Default within 60 days after receipt of the notice. The notice must specify the Default, demand that it be remedied and state that the notice is a “Notice of 

 

  	
         
	
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Default.” When a Default under clause (4) above is cured within such 60-day period, it ceases to be a Default.

SECTION 5.02.      Acceleration of Maturity; Rescission and Annulment. If an Event of Default with respect to Securities of any series (other than an Event of Default specified in clause (6) or (7) of Section 5.01) occurs and is continuing, the Trustee by notice in writing to the Company, or the Holders of at least twenty-five percent in aggregate principal amount of the Outstanding Securities of that series by notice in writing to the Company and the Trustee, may declare the unpaid principal of and accrued interest to the date of acceleration (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) on all the Outstanding Securities of that series to be due and payable immediately and, upon any such declaration, t

he Outstanding Securities of that series (or specified principal amount) shall become and be immediately due and payable.

If an Event of Default specified in clause (6) or (7) of Section 5.01 occurs, all unpaid principal of and accrued interest on the Outstanding Securities of that series (or specified principal amount) shall ipso facto become and be immediately due and payable without any declaration or other act on the part of the Trustee or any Holder of any Security of that series.

Upon payment of all such principal and interest, all of the Company’s obligations under the Securities of that series and (upon payment of the Securities of all series) this Indenture shall terminate, except obligations under Section 6.07.

At any time after a declaration of acceleration of Maturity 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 provided, the Holders of a majority in principal amount of the Outstanding Securities of that series by notice to the Trustee may rescind an acceleration and its consequences if (i) all existing Events of Default, other than the nonpayment of the principal of and interest on the Securities of that series that has become due solely by such declaration of acceleration, have been cured or waived, (ii) to the extent the payment of such interest is lawful, interest on overdue installments of interest and overdue principal that has become due otherwise than by such declaration of acceleration have been paid, (iii) the rescission would not conflict with any judgment or decree of a cour

t of competent jurisdiction and (iv) all payments due to the Trustee and any predecessor Trustee under Section 6.07 have been made.

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

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

 

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

(3)          default is made in the payment of any sinking or analogous obligation when the same becomes due by the terms of the Securities of any series, and any such default continues for any period of grace provided with respect to the Securities of such series,

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 premium, if any) and interest and, to the extent that payment of such interest shall be legally enforceable, interest on any overdue principal (and premium, if any) 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 secure any other proper remedy.

SECTION 5.04.      Trustee May File Proofs of Claim. In case of the pendency of any receivership, insolvency, liquidation, bankruptcy, reorganization, arrangement, adjustment, composition or other judicial proceeding relative to the Company or any other obligor upon the Securities or the property of the Company or of such other obligor 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,

(i)           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 

 

  	
         
	
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and advances of the Trustee, its agent and counsel) and of the Holders allowed in such judicial proceedings, and

(ii)          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, in the event that the Trustee shall consent to the making of such payments directly to the Holders, to pay to the Trustee any amount due it for the reasonable compensation, expenses, disbursements and advances of the Trustee, its agents and counsel, and any other amounts due the Trustee under Section 6.07.

Nothing herein contained 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, arrangement, adjustment or composition affecting the Securities or the rights of any Holder thereof or to authorize the Trustee to vote in respect of the claim of any Holder in any such proceeding.

SECTION 5.05.      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 5.06.      Application of Money Collected. Any money collected by the Trustee pursuant to this Article in respect of the Securities of any series 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, premium, if any, or interest, upon presentation of the Securities in respect of which moneys have been collected 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 6.07 applicable to such series;

Second: To the payment of the amounts then due and unpaid for principal of, and premium, if any, and interest on the Securities of such series 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 of such series for principal, and premium, if any, and interest, respectively; and

Third: To the Company.

 

  	
         
	
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The Trustee may fix a record date and payment date for any payment to Holders pursuant to this Section 5.06. At least ten (10) days before such record date, the Trustee shall mail to each Holder and the Company a notice that states the record date, the payment date and the amount to be paid.

SECTION 5.07.      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:

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

(2)          the Holders of at least twenty-five percent 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;

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

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

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

it being understood and intended that no one or more of Holders of Securities of any series 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 Holders of Securities of the affected series.

SECTION 5.08.      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, premium, if any, and (subject to Section 3.07) 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 5.09.      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 

 

  	
         
	
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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 has 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 3.06, no right or remedy herein conferred upon or 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. 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 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 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 that:

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

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

(3)          subject to Section 6.01, the Trustee need not take any action which might involve the Trustee in personal liability or be unduly prejudicial to the Holders not joining therein.

SECTION 5.13.      Waiver of Past Defaults. The Holders of not less than a majority in principal amount of the Outstanding Securities of any series may by written notice to the Trustee on behalf of the Holders of all the Securities of such series waive any Default or Event of Default with respect to such series and its consequences, except a Default or Event of Default

(1)          in respect of the payment of the principal of or premium, if any, or interest on any Security of such series, or

 

  	
         
	
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(2)          in respect of a covenant or other 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 or Event of Default shall cease to exist and shall be deemed to have been cured, for every purpose of this Indenture and the Securities of such series; but no such waiver shall extend to any subsequent or other Default or Event of Default or impair any right consequent thereon.

SECTION 5.14.      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 in such suit of an undertaking to pay the costs of such suit, and that such court may in its discretion assess reasonable costs, including reasonable attorneys’ fees and expenses, against any party litigant in such suit, having due regard to the merits and good faith of the claims or defenses made by such party litigant; but the provisions of this Section shall not apply to any suit instituted by the C

ompany, to any suit instituted by the Trustee, to any suit instituted by any Holder, or group of Holders, holding in the aggregate more than ten percent 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).

ARTICLE 6

THE TRUSTEE

SECTION 6.01.      Certain Duties and Responsibilities of the Trustee. (a) Except during the continuance of an Event of Default, the Trustee’s duties and responsibilities under this Indenture shall be governed by Section 315(a) of the Trust Indenture Act.

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

(c)          None of the provisions of Section 315(d) of the Trust Indenture Act shall be excluded from this Indenture.

(d)          Every provision of this Indenture which pertains to the Trustee shall be subject to this Section 6.01.

SECTION 6.02.      Notice of Defaults. Within 90 days after the occurrence of any Default or Event of Default with respect to the Securities of any series, the Trustee shall 

 

  	
         
	
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give to all Holders of Securities of such series, as their names and addresses appear in the Security Register, notice of such Default or Event of Default known to the Trustee, unless such Default or Event of Default shall have been cured or waived; provided, however, that, except in the case of a Default or Event of Default in the payment of the principal of or premium, if any, or interest on any Security of such series, the Trustee shall be protected in withholding such notice if and so long as the board of directors, the executive committee or a trust committee of directors and/or Responsible Officers of the Trustee in good faith determine that the withholding of such notice is in the interest of the Holders of Securities of such series.

SECTION 6.03.      Certain Rights of Trustee. Subject to the provisions of the Trust Indenture Act:

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

(b)          any request or direction of the Company mentioned herein shall be sufficiently evidenced by a Company Request or Company Order and any resolution of the Board of Directors may be sufficiently evidenced by a Board Resolution;

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

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

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

(f)           prior to the occurrence of an Event of Default with respect to the Securities of any series and after the curing or waiving of all such Events of Default which may have occurred, 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, approval or other paper or document, or the books and records of the Company, unless requested in writing to do so by the Holders of a majority in principal amount of the Outstanding Securities of any series; 

 

  	
         
	
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provided, however, that if the payment within a reasonable time to the Trustee of the costs, expenses or liabilities likely to be incurred by it in the making of such investigation is not, in the opinion of the Trustee, reasonably assured to the Trustee by the security afforded to it by the terms of this Indenture, the Trustee may require indemnity satisfactory to it against such costs, expenses or liabilities as a condition to so proceeding; the reasonable expense of every such investigation shall be paid by the Company or, if paid by the Trustee, shall be repaid by the Company upon demand;

(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

(h)          the Trustee shall not be required to expend or risk its own funds or otherwise incur any financial liability in the performance of any of its duties hereunder, or in the exercise of 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.

(i)           the Trustee shall not be deemed to have notice of any Default of 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 Securities and this Indenture;

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

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

SECTION 6.04.      Not Responsible for Recitals or Issuance of Securities. The recitals herein and in the Securities, except the Trustee’s certificates of authentication, shall be taken as the statements of the Company, and neither the Trustee nor any Authenticating Agent assumes any responsibility for their correctness. The Trustee makes no representations as to the validity or sufficiency of this Indenture or of the Securities, except that the Trustee represents that it is duly authorized to execute and deliver this Indenture, authenticate the Securities and perform its obligations hereunder, and that the statements made by it or to be made by it in a Statement of Eligibility and Qualification on Form T-1 supplied to the Company are true and accurate. Neither the Trustee nor any Authenticating Agent shall be acc

ountable for the use or application by the Company of Securities or the proceeds thereof.

 

  	
         
	
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SECTION 6.05.      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 6.08 and 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 6.06.      Money Held in Trust. Money held by the Trustee in trust hereunder (including amounts held by the Trustee as Paying Agent) 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 upon in writing with the Company.

SECTION 6.07.      Compensation and Reimbursement. The Company agrees

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

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

(3)          to indemnify each of the Trustee or any predecessor trustee and their agents for, and to hold them harmless against, any and all loss, liability, damage, claim or expense, including taxes (other than taxes based upon or determined or measured by the income of the Trustee), incurred without negligence or bad faith 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 (whether asserted by the Company, or any Holder or any other Person) or liability in connection with the exercise or performance of any of its powers or duties hereunder.

The Trustee shall have a lien prior to the Securities as to all property and funds held by it hereunder for any amount owing it or any predecessor Trustee pursuant to this Section 6.07, except with respect to funds held in trust for the benefit of the Holders of particular Securities.

When the Trustee incurs expenses or renders services in connection with an Event of Default specified in Section 5.01(6) or Section 5.01(7), the expenses (including the reasonable charges and expenses of its counsel) and the compensation for the services are intended to constitute expenses of administration under any applicable Bankruptcy Law.

 

  	
         
	
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The provisions of this Section 6.07 shall survive this Indenture and the resignation or removal of the Trustee.

SECTION 6.08.      Disqualification; Conflicting Interests. The Trustee shall be disqualified only where such disqualification is required by Section 310(b) of the Trust Indenture Act. Nothing shall prevent the Trustee from filing with the Commission the application referred to in the second to last paragraph of Section 310(b) of the Trust Indenture Act.

SECTION 6.09.      Corporate Trustee Required; Eligibility. There shall at all times be a Trustee hereunder which shall be eligible to act as Trustee under Section 310(a)(1) of the Trust Indenture Act having a combined capital and surplus of at least $50,000,000 and 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. Neither the Company nor any Person directly or indirectly controlling, controlled by, or under common control with the Company m

ay serve as Trustee. 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.

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 at the expense of the Company 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:

(1)          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

(2)          the Trustee shall cease to be eligible under Section 6.09 and shall fail to resign after written request therefor by the Company or by any such Holder 

 

  	
         
	
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of a Security who has been a bona fide Holder of a Security for at least six months; or

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

then, in any such case, (i) the Company by a Board Resolution may remove the Trustee with respect to all Securities, or (ii) subject to Section 315(e) of the Trust Indenture Act, 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.

If an instrument of acceptance by a successor Trustee shall not have been delivered to the Trustee within 30 days after the giving of such notice of removal, the Trustee being removed may petition, at the expense of the Company, any court of competent jurisdiction, for the appointment of a successor Trustee with respect to the Securities of such series.

(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 s

hall 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 with respect to such Securities. 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 by mailing written notice of such event by first-class mail, postage prepaid, to all Holders of Securities of such series 

 

  	
         
	
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as their names and addresses appear in the Security Register. Each notice shall include the name of the successor Trustee with respect to the Securities of such series and the address of its Corporate Trust Office.

SECTION 6.11.      Acceptance of Appointment by Successor. (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 Tru

stee and shall duly assign, transfer and deliver to such successor Trustee all property and money held by such retiring Trustee hereunder.

(b)          In case of the appointment hereunder of a successor Trustee with respect to the Securities of such (but not all) series, the Company, the retiring Trustee and each successor Trustee with respect to the Securities of such series shall execute and deliver an indenture supplemental hereto wherein each successor Trustee shall accept such appointment and which (1) 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, (2) if the retiring Trustee is not retiring with respect to all Securities, shall contain such provisions as shall be deemed necessary or d

esirable 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 (3) 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 

 

  	
         
	
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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 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, 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

, consolidation or otherwise as permitted hereunder) to such authenticating Trustee may adopt such authentication and deliver the Securities so authenticated with the same effect as if such successor Trustee had itself authenticated such Securities.

SECTION 6.13.      Preferential Collection of Claims Against Company. The Trustee shall comply with Section 311(a) of the Trust Indenture Act, excluding any creditor relationship listed in Section 311(b) of the Trust Indenture Act. A Trustee who has resigned or been removed shall be subject to Section 311(a) of the Trust Indenture Act to the extent indicated therein.

SECTION 6.14.      Appointment of Authenticating Agent. At any time when any of the Securities remain Outstanding the Trustee may appoint an Authenticating Agent or Agents with respect to one or more series of Securities which shall be authorized to act on behalf of, and subject to the direction of, the Trustee to authenticate Securities of such series issued upon exchange, registration of transfer or partial redemption thereof or pursuant to Section 3.06, and Securities so authenticated shall be entitled to the benefits of this Indenture and shall be valid and obligatory for all purposes as if authenticated by the Trustee hereunder. Wherever reference is made in this Indenture to the authentication and delivery of Securities by the Trustee or the Trustee’s certificate of authentication, such reference shall be de

emed 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

 

  	
         
	
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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 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.

The Company agrees to pay to each Authenticating Agent from time to time reasonable compensation as negotiated between the Company and such Authenticating Agent for its services under this Section.

If an appointment with respect to one or more series is made pursuant to this Section, 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:

 

  	
         
	
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Form of Authenticating Agent’s

Certificate of Authentication

  Dated: ____________________

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

  	
         
	
        The Bank of New York                                                            
	
         

	 	As Trustee
	 
	By
	  _____________________________________	 
	 	As Authenticating Agent
	 
	By
	  _____________________________________	 
	 	Authorized Signatory
	 

 

SECTION 6.15.      Compliance with Tax Laws. The Trustee hereby agrees to comply with all U.S. Federal income tax information reporting and withholding requirements applicable to it with respect to payments of premium (if any) and interest on the Securities of any series, whether acting as Trustee, Security Registrar, Paying Agent or otherwise with respect to the Securities of any series.

ARTICLE 7

HOLDERS' LISTS AND REPORTS BY TRUSTEE AND COMPANY

SECTION 7.01.      Company to Furnish Trustee Names and Addresses of Holders. The Company will furnish or cause to be furnished to the Trustee:

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

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

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

SECTION 7.02.      Preservation of Information; Communications to Holders. (a)  The Trustee shall preserve, in as current a form as is reasonably practicable, the names and addresses of Holders contained in the most recent list furnished to the Trustee as provided in Section 7.01 and the names and addresses of Holders received by the 

 

  	
         
	
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Trustee in its capacity as Security Registrar. The Trustee may destroy any list furnished to it as provided in Section 7.01 upon receipt of a new list so furnished.

(b)          If three or more Holders (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 7.02(a); or

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

If the Trustee shall elect not to afford such applicants access to such information, the Trustee shall, upon the written request of such applicants, mail to each Holder whose name and address appears in the information preserved at the time by the Trustee in accordance with Section 7.02(a) a copy of the form of proxy or other communication which is specified in such request, with reasonable promptness after a tender to the Trustee of the material to be mailed and of payment, or provision for the payment, of the reasonable expenses of mailing, unless within five days after such tender the Trustee shall mail to such applicants and file with the Commission, together with a copy of the material to be mailed, a written statement to the effect that, in the opinion of the Trustee, such mailing would be contrary to the best interest of the Holders or would be in violation of applicable law. Such written statement shall sp

ecify the basis of such opinion. If the Commission, after opportunity for a hearing upon the objections specified in the written statement so filed, shall enter an order refusing to sustain any of such objections or if, after the entry of an order sustaining one or more of such objections, the Commission shall find, after notice and opportunity for hearing, that all 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 neither the Company nor the Trustee nor any agent of either 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 7.02(b), regardless of the source from which such information was derived, and that 

 

  	
         
	
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the Trustee shall not be held accountable by reason of mailing any material pursuant to a request made under Section 7.02(b).

SECTION 7.03.      Reports by Trustee. (a) Within 60 days after September 15 of each year commencing with the year 2006, the Trustee shall transmit by mail to all Holders of Securities as provided in Section 313(c) of the Trust Indenture Act, a brief report dated as of September 15, if required by and in compliance with Section 313(a) of the Trust Indenture Act. The Trustee shall also comply with Section 313(b) of the Trust Indenture Act.

(b)          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 Commission and with the Company. The Company will notify the Trustee when any Securities are listed on any stock exchange and any delisting thereof.

SECTION 7.04.      Reports by Company. The Company shall:

(1)          file with the Trustee, within 15 days after the Company is required to file the same with the Commission, copies of the annual reports and of the information, documents and other reports (or copies of such portions of any of the foregoing as the Commission may from time to time by rules and regulations prescribe) which the Company may be required to file with the Commission pursuant to Section 13 or Section 15(d) of the 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 Commission, in accordance with rules and regulations prescribed from time to time by the Commission, such of the supplementary and periodic information, documents and reports which may be required pursuant to Section 13 of the Exchange Act in respect of a securit

y listed and registered on a national securities exchange as may be prescribed from time to time in such rules and regulations;

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

(3)          transmit by mail to all Holders, as their names and addresses appear in the Security Register, (a) concurrently with furnishing the same to its stockholders, the Company’s annual report to stockholders, containing certified financial statements, and any other financial reports which the Company generally furnishes to its stockholders, and (b) within 30 days after the filing thereof with the Trustee, such summaries of any other information, documents and reports required to be filed by the Company pursuant to paragraphs (1) and (2) of this Section as may be required by rules and regulations prescribed from time to time by the Commission; and

(4)          furnish to the Trustee, on October 15 of each year, a brief certificate from the principal executive officer, principal financial officer or principal accounting officer 

 

  	
         
	
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as to his or her knowledge of the Company’s compliance with all conditions and covenants under this Indenture. For purposes of this paragraph, such compliance shall be determined without regard to any period of grace or requirement of notice provided under this Indenture. Such certificate need not comply with Section 1.02.

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

ARTICLE 8

CONSOLIDATION, MERGER, LEASE, SALE OR TRANSFER

SECTION 8.01.      When Company May Merge, Etc. The Company shall not consolidate with, or merge with or into, any other Person (whether or not the Company shall be the surviving corporation), or convey, transfer or lease all or substantially all of its properties and assets as an entirety or substantially as an entirety to any Person or group of affiliated Persons, in one transaction or a series of related transactions, unless:

(1)          either the Company shall be the continuing Person or the Person (if other than the Company) formed by such consolidation or with which or into which the Company is merged or the Person (or group of affiliated Persons) to which all or substantially all the properties and assets of the Company as an entirety or substantially as an entirety are conveyed, transferred or leased shall be a corporation (or constitute corporations) organized and existing under the laws of the United States of America or any State thereof or the District of Columbia and shall expressly assume, by an indenture supplemental hereto, executed and delivered to the Trustee, in form satisfactory to the Trustee, all the obligations of the Company under the Securities and this Indenture; and

(2)          immediately after giving effect to such transaction or series of related transactions, no Event of Default, and no Default, shall have occurred and be continuing.

SECTION 8.02.      Opinion of Counsel. The Company shall deliver to the Trustee prior to the proposed transaction(s) covered by Section 8.01 an Officers’ Certificate and an Opinion of Counsel stating that the transaction(s) and such supplemental indenture comply with this Indenture and that all conditions precedent to the consummation of the transaction(s) under this Indenture have been met.

SECTION 8.03.      Successor Corporation Substituted. Upon any consolidation by the Company with or merger by the Company into any other corporation or any conveyance, transfer or lease all or substantially all of the property and assets of the Company in accordance with Section 801, the successor corporation formed by such consolidation or into which the Company is merged or the successor corporation or affiliated group of corporations to which such lease, sale, assignment or transfer 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 corporation or 

 

  	
         
	
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corporations had been named as the Company herein, and thereafter, except in the case of a lease, the predecessor corporation or corporations shall be relieved of all obligations and covenants under this Indenture and the Securities and in the event of such conveyance or transfer, except in the case of a lease, any such predecessor corporation may be dissolved and liquidated.

ARTICLE 9

SUPPLEMENTAL INDENTURES

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

(1)          to evidence the succession of another corporation to the Company and the assumption by any such successor of the covenants of the Company herein and in the Securities; or

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

(3)          to add any additional Events of Default with respect to all or any series of Securities; or

(4)          to add or change 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

(5)          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 which is entitled to the benefit of such provision; or

(6)          to secure the Securities; or

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

(8)          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

 

  	
         
	
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(9)          to cure any ambiguity, defect or inconsistency or to correct or supplement any provision herein which may be inconsistent with any other provision herein; or

(10)        to make any change that does not materially adversely affect the interests of the Holders of Securities of any series; or

(11)        to add guarantees with respect to any or all of the Securities; or

(12)        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 Internal Revenue Code or in a manner such that the uncertificated Securities are described in Section 163(f)(2)(B) of such Code).

Upon request of the Company, accompanied by a Board Resolution authorizing the execution of any such supplemental indenture, and upon receipt by the Trustee of the documents described in (and subject to the last sentence of) Section 9.03, the Trustee shall join with the Company in the execution of any supplemental indenture authorized or permitted by the terms of this Indenture.

SECTION 9.02.      Supplemental Indentures with Consent of Holders. With the written consent of the Holders of a majority in aggregate principal amount of the Outstanding Securities of each series affected by such supplemental indenture (with the Securities of each series voting as a class), by Act of said Holders delivered to the Company and the Trustee, the Company, when authorized by a Board Resolution, and the Trustee shall, subject to Section 9.03, enter into an indenture or indentures supplemental hereto for the purpose of adding any provisions to or changing in any manner or eliminating any of the provisions of this Indenture or of modifying in any manner the rights of the Holders of Securities of such series under this Indenture; provided, however, that no such supplemental indenture shall, without the consent of the Holder of each Outstanding Security af

fected thereby,

(1)          change the Stated Maturity of the principal of, or premium, if any, or any installment of principal of or premium, if any, or interest on, any Security, or reduce the principal amount thereof or the rate of interest thereon or any premium payable upon the redemption, repurchase or repayment thereof, or change the manner in which the amount of any principal thereof or premium, if any, or interest thereon is determined, or reduce the amount of the principal of any Original Issue Discount Security that would be due and payable upon a declaration of acceleration of the Maturity thereof pursuant to Section 5.02, or change any Place of Payment where, or the coin or currency or currency unit in which, any Security or any premium or interest thereon is payable, or impair the right to institute suit for the enforcement of any such payment on or after the State

d Maturity thereof (or, in the case of redemption, on or after the Redemption Date);

(2)          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 

 

  	
         
	
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provisions of this Indenture or Defaults or Events of Default hereunder and their consequences provided for in this Indenture; or

(3)          change the redemption provisions (including Article 11) hereof in a manner adverse to such Holder; or

(4)          modify any of the provisions of this Section, Section 5.13 or Section 10.11, 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 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 and Section 10.11, or the deletion of this proviso, in accordance with the requirements of Sections 6.11(b) and 9.01(8).

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

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

SECTION 9.03.      Execution of Supplemental Indentures. The Trustee shall sign any supplemental indenture authorized pursuant to this Article, subject to the last sentence of this Section 9.03. 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 6.01) shall be fully protected in relying upon, an Officers’ Certificate and an Opinion of Counsel stating that the execution of such supplemental indenture is authorized or permitted by this Indenture. The Trustee may, but shall not be obligated to, enter into any such supplemental indenture which affects the Trustee’s own rights, duties or immunities under this Indenture or otherwise.

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

SECTION 9.05.      Conformity with Trust Indenture Act. Every supplemental indenture executed pursuant to this Article shall conform to the requirements of the Trust Indenture Act as then in effect.

 

  	
         
	
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SECTION 9.06.      Reference in Securities to Supplemental Indentures. Securities of any series authenticated and delivered after the execution of any supplemental indenture pursuant to this Article 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 10

COVENANTS

SECTION 10.01.    Payments of Securities. With respect to each series of Securities, the Company will duly and punctually pay the principal of (and premium, if any) and interest on such Securities in accordance with their terms and this Indenture, and will duly comply with all the other terms, agreements and conditions contained in, or made in the Indenture for the benefit of, the Securities of such series.

SECTION 10.02.    Maintenance of Office or Agency. The Company will maintain an office or agency in each Place of Payment where Securities may be surrendered for registration of transfer or exchange or for presentation for payment, where notices and demands to or upon the Company in respect of the Securities and this Indenture may be served. The Company will give prompt written notice to the Trustee of the location, and any change in 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 address of the Trustee as set forth in Section 1.05 hereof.

The Company may also from time to time designate one or more other offices or agencies where the Securities may be presented or surrendered for any or all such purposes and may from time to time rescind such designations. 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.

SECTION 10.03.    Corporate Existence. Subject to Article 8 hereof, the Company will do or cause to be done all things necessary to preserve and keep in full force and effect its corporate existence and that of each of its Subsidiaries and the rights (charter and statutory), licenses and franchises of the Company and its Subsidiaries; provided, however, that (a) the Company shall not be required to preserve any such right, license or franchise or the corporate existence of any of its Subsidiaries if the Board of Directors, or the board of directors of the Subsidiary concerned, as the case may be, shall determine that the preservation thereof is no longer desirable in the conduct of the business of the Company or any of its Subsidiaries, and (b) nothing herein contained shall prevent any Subsidiary of the Company from liquidating or dissolving, or merging into, or consolidat

ing with the Company (provided that the Company shall be the continuing or surviving corporation) or with any one or more other Subsidiaries if the Board of 

 

  	
         
	
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Directors or the board of directors of the Subsidiary concerned, as the case may be, shall so determine.

SECTION 10.04.    Payment of Taxes and Other Claims. The Company will pay or discharge, or cause to be paid or discharged, before the same shall become delinquent, (1) all material taxes, assessments and governmental charges levied or imposed upon the Company or any Subsidiary or upon the income, profits or property of the Company or any Subsidiary, and (2) all lawful claims for labor, materials and supplies which, if unpaid, might by law become a material lien upon the property of the Company or any Subsidiary; provided, however, that the Company shall not be required to pay or discharge or cause to be paid or discharged any such tax, assessment, charge or claim whose amount, applicability or validity is being contested in good faith by appropriate proceedings and for which adequate provision has been made.

SECTION 10.05.    Maintenance of Properties. The Company will cause all material properties used or useful in the conduct of its business or the business of any of its Subsidiaries to be maintained and kept in good condition, repair and working order (normal wear and tear excepted) and supplied with all necessary equipment and will cause to be made all necessary repairs, renewals, replacements, betterments and improvements thereof, all as in the judgment of the Company may be necessary, so that the business carried on in connection therewith may be properly and advantageously conducted at all times; provided, however, that nothing in this Section shall prevent the Company from discontinuing the operation or maintenance of any of such properties, or disposing of any of them, if such discontinuance or disposal is, in the judgment of the Board of Directors or of the board of d

irectors of the Subsidiary concerned, as the case may be, desirable in the conduct of the business of the Company or any Subsidiary of the Company.

SECTION 10.06.    Compliance Certificates. (a) The Company shall deliver to the Trustee within 90 days after the end of each fiscal year of the Company (which fiscal year currently ends on December 31), an Officers’ Certificate stating whether or not the signer knows of any Default or Event of Default by the Company that occurred prior to the end of the fiscal year and is then continuing. If the signer does know of such a Default or Event of Default, the certificate shall describe each such Default or Event of Default and its status and the specific section or sections of this Indenture in connection with which such Default or Event of Default has occurred. The Company shall also promptly notify the Trustee in writing should the Company’s fiscal year be changed so that the end thereof is on any date other than the date on which the Company’s fiscal year currently ends. The

 certificate need not comply with Section 1.02 hereof, but shall comply with Section 314(a)(4) of the Trust Indenture Act.

(b)          The Company shall deliver to the Trustee, within 10 days after the occurrence thereof, notice of any acceleration which with the giving of notice and the lapse of time would be an Event of Default within the meaning of Section 5.01(5) hereof.

(c)          The Company shall deliver to the Trustee within 100 days after the end of each fiscal year a written statement by the Company’s independent certified public 

 

  	
         
	
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accountants stating (i) that their audit examination has included a review of the terms of this Indenture and the Securities as they relate to accounting matters and (ii) whether, in connection with their audit examination, any Default has come to their attention and if such a Default has come to their attention, specifying the nature and period of existence thereof and the specific section or sections of this Indenture in connection with which such Default has occurred; provided that, without any restriction as to the scope of the audit examination, such independent certified public accountants shall not be liable by reason of the failure to obtain knowledge of such Default that would not be disclosed in the course of an audit examination conducted in accordance with generally accepted auditing standards.

(d)          The Company shall deliver to the Trustee forthwith upon becoming aware of a Default or Event of Default (but in no event later than 10 days after the occurrence of each Default or Event of Default that is continuing), an Officers’ Certificate setting forth the details of such Default or Event of Default and the action that the Company proposes to take with respect thereto and the specific section or sections of this Indenture in connection with which such Default or Event of Default has occurred.

SECTION 10.07.    Waiver of Stay, Extension or Usury 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, and will actively resist any and all efforts to be compelled to take the benefit or advantage of, any stay or extension law or any usury law or other law, which would prohibit or forgive the Company from paying all or any portion of the principal of and/or interest on the Securities as contemplated herein, wherever enacted, now or at any time hereafter in force, or which may affect the covenants or the performance of this Indenture; and (to the extent that it may lawfully do so) the Company 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 suffe

r and permit the execution of every such power as though no such law had been enacted.

SECTION 10.08.    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 premium, if any) 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 premium, if any) or interest so becoming due until such sums shall be paid to such Persons or otherwise disposed of as herein provided and will promptly notify the Trustee of its action or failure so to act.

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

 

  	
         
	
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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:

(1)          hold all sums held by it for the payment of the principal of (and premium, if any) 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;

(2)          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 premium, if any) or interest on the Securities of that series; and

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

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

Any money deposited with the Trustee or any Paying Agent, or then held by the Company, in trust for the payment of the principal of (and premium, if any) or interest on any Security of any series and remaining unclaimed for two years after such principal (and premium, if any) or interest has become due and payable shall be paid to the Company on Company Request, or (if then held by the Company) shall be discharged from such trust; and the Holder of such Security shall thereafter, as an unsecured general creditor, look only to the Company for payment thereof, and all liability of the Trustee or such Paying Agent with respect to such trust money, and all liability of the Company as trustee thereof, shall thereupon cease; provided, however, that the Trustee of 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 New York, 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 10.09.    Limitations on Liens. Unless the terms of a particular series of Securities otherwise provide, so long as any Securities of such series remain Outstanding, the Company will not, nor will it permit any Restricted Subsidiary to, issue, incur, create, assume or guarantee any Indebtedness secured by a mortgage, security interest, pledge, lien, charge or other encumbrance (mortgages, security interests, pledges, liens, charges 

 

  	
         
	
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and other encumbrances being hereinafter in this Article 10 referred to as “lien” or “liens”) upon any assets of the Company or any Restricted Subsidiary (whether such assets are now existing or owned or hereafter created or acquired) without in any such case effectively providing concurrently with the issuance, incurrence, creation, assumption or guaranty of any such Indebtedness that the Securities of such series (together with, if the Company shall so determine, any other indebtedness of or guarantee by the Company or such Restricted Subsidiary ranking equally with the Securities of such series and then existing or thereafter created) shall be secured equally and ratably with (or, at the Company’s option, prior to) such secured Indebtedness until such time as such Indebtedness is no longer secured by a lien. The preceding sentence shall not require the Company to secure any Securities of suc

h series if the lien consists of either of the following:

(a)          Permitted Liens; or

(b)          liens securing Indebtedness if, after giving pro forma effect to the incurrence, creation, assumption or guaranty of such Indebtedness (and the receipt and application of the proceeds thereof) or the securing of outstanding Indebtedness, the sum of (without duplication) (i) the aggregate principal amount of all such Indebtedness of the Company and its Subsidiaries secured by liens (other than Permitted Liens) upon the assets of the Company or any Restricted Subsidiary or, if less, the fair market value of the property subject to such lien, as determined in good faith by the Board of Directors and (ii) all Attributable Debt in respect of Sale and Lease-Back Transactions not otherwise permitted under the first sentence of Section 10.11, at the time of determination does not exceed fifteen percent of Consolidated Net Worth.

SECTION 10.10.    Limitations on Sale and Lease-back Transactions. Unless the terms of a particular series of Securities otherwise provide, so long as any Securities of such series remain Outstanding, the Company will not, nor will it permit any Restricted Subsidiary to, enter into any Sale and Lease-Back Transaction for a term of more than three years unless (a) the assets subject to the Sale and Lease-back Transaction have not been owned by the Company or a Restricted Subsidiary or have not been in full operation for more than one year prior to the Sale and Lease-back Transaction or (b) the Company or such Restricted Subsidiary would be entitled to incur Indebtedness secured by a lien on such assets in an amount at least equal to the Attributable Debt with respect to such Sale and Lease-Back Transaction without equally and ratably securing the Securities of such series pursuant to Sect

ion 10.10 or (c) the Company, within 180 days after the effective date of such Sale and Lease-Back Transaction, applies an amount equal to the value of such assets to the defeasance or retirement (other than any mandatory retirement, mandatory prepayment or sinking fund payment or by way of payment at maturity) of Securities or other Indebtedness of the Company or a Restricted Subsidiary that matures more than one year after the creation of such Indebtedness or to the purchase, construction or development of other comparable property or (d) the transaction is between the Company and one of its Restricted Subsidiaries. Notwithstanding the foregoing, the Company and its Restricted Subsidiaries shall be allowed to enter into Sale and Lease-back Transactions if, after giving pro forma effect to such Sale and Lease-back Transaction (and the receipt and application of proceeds thereof) the sum of (without 

 

  	
         
	
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duplication) (i) the aggregate principal amount of all Indebtedness of the Company and its Subsidiaries secured by liens (other than Permitted Liens) upon the assets of the Company or any Restricted Subsidiary or, if less, the fair market value of the property subject to such lien, as determined in good faith by the Board of Directors and (ii) all Attributable Debt in respect of Sale and Lease-Back Transactions not otherwise permitted under the first sentence of this Section 10.11, at the time of determination does not exceed fifteen percent of Consolidated Net Worth.

SECTION 10.11.    Waiver of Certain Covenants. The Company may omit in any particular instance to comply with any term, provision or condition set forth in Sections 10.09 or 10.10 with respect to the Securities of any series if before the time for such compliance the Holders of not less than a majority in principal amount of the Outstanding Securities of such series shall, by Act or such Holders, either waive such compliance in such instance or generally waive compliance with such term, provision or condition, but no such waiver shall extend to or affect such term, provision or condition except to the extent so expressly waived, and, until such waiver shall become effective, the obligations of the Company and the duties of the Trustee in respect of any such term, provision or condition shall remain in full force and effect.

ARTICLE 11

REDEMPTION OF SECURITIES

SECTION 11.01.    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 3.01 for Securities of any series) in accordance with this Article.

SECTION 11.02.    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 30 and not more than 60 days prior to the Redemption Date fixed by the Company (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. In the case of any redemption of Securities prior to the expiration of any restriction on such redemption provided in the terms of such Securities or elsewhere in this Indenture, the Company shall furnish the Trustee with an Officers’ Certificate evidencing compliance with such restriction.

SECTION 11.03.    Selection by Trustee of Securities to Be Redeemed. If less than all the Securities of any series are to be redeemed, the particular Securities to be redeemed shall be selected not less than 90 days prior to the Redemption Date by the Trustee, from the Outstanding Securities of such series not previously called for redemption, substantially pro rata, by lot or by any other method as the Trustee considers fair and appropriate and that complies with the requirements of the principal national securities exchange, if any, on which such Securities are listed, 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 

 

  	
         
	
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amount of Securities of such series of a denomination larger than the minimum authorized denomination for Securities of that series; provided that in case the Securities of such series have different terms and maturities, the Securities to be redeemed shall be selected by the Company and the Company shall give notice thereof to the Trustee.

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.

For all purposes of this Indenture, unless the context otherwise requires, all provisions relating to the redemption of the 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.

SECTION 11.04.    Notice of Redemption. Notice of redemption shall be given by first-class mail, postage prepaid, mailed not less than 30 nor more than 45 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:

(1)          the Redemption Date;

(2)          the Redemption Price;

(3)          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;

(4)          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;

(5)          the place or places where such Securities are to be surrendered for payment of the Redemption Price;

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

(7)          the CUSIP number, if any, of the Securities to be redeemed.

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 11.05.    Deposit of Redemption Price. On or prior to 10:00 New York City time on the 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 10.08) an amount of money sufficient to pay the 

 

  	
         
	
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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.

Unless any Security by its terms prohibits any sinking fund payment obligation from being satisfied by delivering and crediting Securities (including Securities redeemed otherwise than through a sinking fund), the Company may deliver such Securities to the Trustee for crediting against such payment obligation in accordance with the terms of such Securities and this Indenture.

SECTION 11.06.    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 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 Regular or

 Special Record Dates according to their terms and the provisions of Section 3.07.

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 11.07.    Securities Redeemed in Part. Any Security which is to be redeemed only in part shall be surrendered at an office or agency of the Company 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 Stated Maturity, 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 12

SINKING FUNDS

SECTION 12.01.    Applicability of Article. The provisions of this Article shall be applicable to any sinking fund for the retirement of Securities of a series, except as otherwise specified as contemplated by Section 3.01 for Securities of such series.

The minimum amount of any sinking fund payment provided for by the terms of Securities of any series is herein referred to as a “mandatory sinking fund payment,” and any payment in excess of such minimum amount provided for by the terms of 

 

  	
         
	
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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 12.02. 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 12.02.    Satisfaction of Sinking Fund Payments with Securities. The Company (1) may deliver Securities of a series (other than any Securities previously called for redemption) and (2) 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 redemp

tion through operation of the sinking fund and the amount of such sinking fund payment shall be reduced accordingly.

SECTION 12.03.    Redemption of Securities for Sinking Fund. Not less than 45 days prior to each sinking fund payment date for any series of Securities, the Company will deliver to the Trustee an Officers’ 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 thereof, if any, which is to be satisfied by delivering and crediting Securities of that series pursuant to Section 12.02 and will also deliver to the Trustee any Securities to be so delivered (which have not been previously 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 11.03 and cause notice of the redemption th

ereof to be given in the name of and at the expense of the Company in the manner provided in Section 11.04. Such notice having been duly given, the redemption of such Securities shall be made upon the terms and in the manner stated in Sections 11.06 and 11.07.

ARTICLE 13

DEFEASANCE AND COVENANT DEFEASANCE

SECTION 13.01.    Applicability of Article; Company’s Option to Effect Defeasance or Covenant Defeasance. Unless pursuant to Section 3.01 provision is made for the inapplicability of either or both of (a) defeasance of the Securities of a series under Section 13.02 or (b) covenant defeasance of the Securities of a series under Section 13.03, then the provisions of such Section or Sections, as the case may be, together with the other provisions of this Article, shall be applicable to the Securities of such series, and the Company may at its option by Board Resolution, at any time, with respect to the Securities of such series, elect to have either Section 13.02 (unless inapplicable) or 

 

  	
         
	
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Section 13.03 (unless inapplicable) be applied to the Outstanding Securities of such series upon compliance with the applicable conditions set forth below in this Article.

SECTION 13.02.    Defeasance and Discharge. Upon the Company’s exercise of the option provided in Section 13.01 to defease the Outstanding Securities of a particular series, the Company shall be discharged from its obligations with respect to the Outstanding Securities of such series on the date the applicable conditions set forth in Section 13.04 are satisfied (hereinafter, “defeasance”). Defeasance shall mean that the Company shall be deemed to have paid and discharged the entire indebtedness represented by the Outstanding Securities of such series and to have satisfied all its other obligations under such Securities and this Indenture insofar as such Securities are concerned (and the Trustee, at the expense of the Company, shall execute proper instruments acknowledging the same); provided, however, that the following rights, obligations, powers, tru

sts, duties and immunities shall survive until otherwise terminated or discharged hereunder: (A) the rights of Holders of Outstanding Securities of such series to receive, solely from the trust fund provided for in Section 13.04, payments in respect of the principal of (and premium, if any) and interest on such Securities when such payments are due, (B) the Company’s obligations with respect to such Securities under Sections 3.04, 3.05, 3.06, 10.02 and 10.08, (C) the rights, powers, trusts, duties and immunities of the Trustee hereunder and (D) this Article. Subject to compliance with this Article, the Company may exercise its option with respect to defeasance under this Section 13.02 notwithstanding the prior exercise of its option with respect to covenant defeasance under Section 13.03 in regard to the Securities of such series.

SECTION 13.03.    Covenant Defeasance. Upon the Company’s exercise of the option provided in Section 13.01 to obtain a covenant defeasance with respect to the Outstanding Securities of a particular series, the Company shall be released from its obligations under this Indenture (except its obligations under Sections 3.04, 3.05, 3.06, 5.06, 5.09, 6.10, 10.01, 10.02, 10.06, 10.07 and 10.08) with respect to the Outstanding Securities of such series on and after the date the applicable conditions set forth in Section 13.04 are satisfied (hereinafter, “covenant defeasance”). Covenant defeasance shall mean that, with respect to the Outstanding Securities of such series, the Company may omit to comply with and shall have no liability in respect of any term, condition or limitation set forth in this Indenture (except its obligations under Sections 3.04, 3.05, 3.06, 5.06, 5.0

9, 6.10, 10.01, 10.02, 10.06, 10.07 and 10.08), whether directly or indirectly by reason of any reference elsewhere herein or by reason of any reference to any other provision herein or in any other document, and such omission to comply shall not constitute an Event of Default under Section 5.01(4) with respect to Outstanding Securities of such series, and the remainder of this Indenture and of the Securities of such series shall be unaffected thereby.

SECTION 13.04.    Conditions to Defeasance or Covenant Defeasance. The following shall be the conditions to defeasance under Section 13.02 and covenant defeasance under Section 13.03 with respect to the Outstanding Securities of a particular series:

 

  	
         
	
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(1)          The Company shall irrevocably have deposited or caused to be deposited with the Trustee (or another trustee satisfying the requirements of Section 6.09 who shall agree to comply with the provisions of this Article applicable to it), under the terms of an irrevocable trust agreement in form and substance reasonably satisfactory to such Trustee, as trust funds in trust for the purpose of making the following payments, specifically pledged as security for, and dedicated solely to, the benefit of the Holders of such Securities, (A) money in an amount, or (B) U.S. Government Obligations which through the scheduled payment of principal and interest in respect thereof in accordance with their terms will provide, not later than the due date of any payment, money in an amount, or (C) a combination thereof, in each case sufficient, after payment of all federal,

state and local taxes or other charges or assessments in respect thereof payable by the Trustee, in the opinion of a nationally recognized firm of independent public accountants expressed in a written certification thereof delivered to the Trustee, to pay and discharge, and which shall be applied by the Trustee (or other qualifying trustee) to pay and discharge, (i) the principal of (and premium, if any, on) and each installment of principal of (and premium, if any) and interest on the Outstanding Securities of such series on the Stated Maturity of such principal or installment of principal or interest and (ii) any mandatory sinking fund payments or analogous payments applicable to the Outstanding Securities of such series on the day on which such payments are due and payable in accordance with the terms of this Indenture and of such Securities.

(2)          No Default or Event of Default with respect to the Securities of such series shall have occurred and be continuing on the date of such deposit or shall occur as a result of such deposit, and no Default or Event of Default under clause (6) or (7) of Section 5.01 hereof shall occur and be continuing, at any time during the period ending on the 91st day after the date of such deposit (it being understood that this condition shall not be deemed satisfied until the expiration of such period).

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

(4)          Such defeasance or covenant defeasance shall not cause any Securities of such series then listed on any national securities exchange registered under the Exchange Act to be delisted.

(5)          In the case of an election with respect to Section 13.02, the Company shall have delivered to the Trustee either (a) a ruling directed to the Trustee received from the Internal Revenue Service to the effect that the Holders of the Outstanding Securities of such series will not recognize income, gain or loss for federal income tax purposes as a result of such defeasance and will be subject to federal income tax on the same amounts, in the same manner and at the same times as would have been the case if such defeasance had not occurred or (B) an Opinion of Counsel, based on such ruling or on a change in the applicable federal income tax law since the date of this Indenture, in either case to the effect that, and based thereon such opinion shall confirm that, the Holders of the Outstanding Securities of such series will not recognize income, gain or loss

for federal income tax purposes as a result of such defeasance and will be subject to federal income 

 

  	
         
	
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tax on the same amounts, in the same manner and at the same times as would have been the case if such defeasance had not occurred.

(6)          In the case of an election with respect to Section 13.03, the Company shall have delivered to the Trustee an Opinion of Counsel or a ruling directed to the Trustee received from the Internal Revenue Service to the effect that the Holders of the Outstanding Securities of such series 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.

(7)          Such defeasance or covenant defeasance shall be effected in compliance with any additional terms, conditions or limitations which may be imposed on the Company in connection therewith pursuant to Section 3.01.

(8)          The Company shall have delivered to the Trustee an Officers’ Certificate and an Opinion of Counsel, each stating that all conditions precedent provided for relating to either the defeasance under Section 13.02 or the covenant defeasance under Section 13.03 (as the case may be) have been complied with

.SECTION 13.05.    Deposited Money and Government Obligations To Be Held in Trust. Subject to the provisions of the last paragraph of Section 10.08, all money and Government Obligations (including the proceeds thereof) deposited with the Trustee (or other qualifying trustee—collectively for purposes of this Section 13.05, the “Trustee”) pursuant to Section 13.04 in respect of the Outstanding Securities of a particular series shall 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 its own 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 (and premium, if any) and interest, but such money need not

be segregated from other funds except to the extent required by law.

The Company shall pay and indemnify the Trustee against any tax, fee or other charge imposed on or assessed against the Government Obligations deposited pursuant to Section 13.04 or the principal and interest received in respect thereof, other than any such tax, fee or other charge which by law is for the account of the Holders of the Outstanding Securities of such series.

Anything in this Article to the contrary notwithstanding, the Trustee shall deliver or pay to the Company from time to time upon Company Request any money or Government Obligations held by it as provided in Section 13.04 with respect to Securities of any series which, in the opinion of a nationally recognized firm of independent public accountants expressed in a written certification thereof delivered to the Trustee, are in excess of the amount thereof which would then be required to be deposited for the purpose for which such money or Government Obligations were deposited.

 

  	
         
	
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SECTION 13.06.    Reinstatement. If the Trustee or the Paying Agent is unable to apply any money or U.S. Government Obligations, as the case may be, in accordance with this Article with respect to any Securities by reason of any order or judgment of any court or governmental authority enjoining, restraining or otherwise prohibiting such application, then the obligations under this Indenture and such Securities from which the Company has been discharged or released pursuant to Section 13.02 or 13.03 shall be revived and reinstated as though no deposit had occurred pursuant to this Article with respect to such Securities, until such time as the Trustee or Paying Agent is permitted to apply all money or U.S. Government Obligations, as the case may be, held in trust pursuant to Section 13.05 with respect to such Securities in accordance with this Article; provided, however, tha

t if the Company makes any payment of principal of or any premium or interest on any such Security following such reinstatement of its obligations, the Company shall be subrogated to the rights (if any) of the Holders of such Securities to receive such payment from the money or U.S. Government Obligations, as the case may be, so held in trust.

ARTICLE 14

MISCELLANEOUS

SECTION 14.01.    Miscellaneous. 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.

 

 

 

 

 

 

  	
         
	
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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.

 

  	 	THE INTERPUBLIC GROUP OF COMPANIES, INC. 
	
         

         
	
      By:   /s/ Ellen Johnson          

      Name: Ellen Johnson 

      Title: Senior Vice President and Treasurer       

 

 

[SEAL]

 

  	 	Attest:

          /s/ Nicholas J. Camera       
	
        Name:
        	
      Nicholas J. Camera 

	Title:	Senior Vice President, General Counsel and Secretary

   

  
    	 	THE BANK OF NEW YORK

                       as Trustee
	
           

           
	
        By:   /s/ Franca Ferrera       

        Name: Franca Ferrera 

        Title: Assistant Vice President

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