Document:

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                                                                    Exhibit 10.1

                                FOURTH AMENDMENT
                             TO FINANCING AGREEMENT

         FOURTH AMENDMENT, dated as of October 22, 2004 (this "Amendment"), to
the Financing Agreement, dated as of April 23, 2004 (as amended, restated or
otherwise modified from time to time, the "Financing Agreement"), by and among
aaiPharma Inc., a Delaware corporation (the "Parent"), Applied Analytical
Industries Learning Center, Inc., a Delaware corporation ("Applied Analytical"),
AAI Technologies, Inc., a Delaware corporation ("AAI Technologies"), AAI
Properties, Inc., a North Carolina corporation ("AAI Properties"), AAI Japan,
Inc., a Delaware corporation ("AAI Japan"), Kansas City Analytical Services,
Inc., a Kansas corporation ("Analytical Services"), AAI Development Services,
Inc., a Massachusetts corporation ("AAI Development-MA"), aaiPharma LLC, a
Delaware limited liability company ("Pharma LLC") and AAI Development Services,
Inc., a Delaware corporation ("AAI Development-DE", and together with the
Parent, Applied Analytical, AAI Technologies, AAI Properties, AAI Japan,
Analytical Services, AAI Development-MA and Pharma LLC, each a "Borrower" and
collectively, the "Borrowers"), the financial institutions from time to time
party hereto (each a "Lender" and collectively, the "Lenders"), Silver Point
Finance, LLC, a Delaware limited liability company ("Silver Point"), as
collateral agent for the Lenders (in such capacity, and any successor in such
capacity, the "Collateral Agent"), and Bank of America, N.A. ("Bank of
America"), as administrative agent for the Lenders (in such capacity, and any
successor in such capacity, the "Administrative Agent" and together with the
Collateral Agent, each an "Agent" and collectively, the "Agents").

         WHEREAS, the Borrowers, the Agents and the Lenders wish to amend
certain terms and conditions of the Financing Agreement as hereafter set forth;

         NOW, THEREFORE, the Borrowers, the Agents and the Lenders hereby agree
as follows:

         1. Capitalized Terms. All terms which are defined in the Financing
Agreement and not otherwise defined herein are used herein as defined therein.

         2. Amendments to Financing Agreement.

                 (a) Recitals. The first two sentences of the first recital to
the Financing Agreement are hereby amended in their entirety to read as follows:

                  "The Borrowers have asked the Lenders to extend credit to the
         Borrowers consisting of (a) a term loan in the aggregate principal
         amount of $135,000,000, (b) a term loan in the aggregate principal
         amount of $30,000,000 and (c) a revolving credit facility in an
         aggregate principal amount not to exceed $15,000,000 at any time
         outstanding, which will include a subfacility for the issuance of
         letters of credit. The proceeds of the term loans and the loans made
         under the revolving credit facility shall be used to, together with the
         Net Cash Proceeds (as hereinafter defined) from the MVI Sale (as
         hereinafter defined), (i) refinance existing indebtedness of the
         Borrowers, (ii) fund the interest payments (and any default interest
         payable thereon) due and payable by the Parent on April 1, 2004 and
         October 1, 2004, in respect of its Senior Subordinated Notes

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         (as hereinafter defined), (iii) provide for general working capital and
         general corporate purposes of the Borrowers and (iv) to pay fees and
         expenses related to this Agreement and the transactions contemplated
         hereby."

                  (b) Definitions. Section 1.01 of the Financing Agreement is
hereby amended as follows:

                           (i) The definition of the term "Applicable
         Incremental Margin" in Section 1.01 of the Financing Agreement is
         hereby deleted in its entirety.

                           (ii) The following definitions in Section 1.01 of the
         Financing Agreement are hereby amended in their entirety to read as
         follows:

                  "'Applicable Prepayment Percentage' means, as of any date of
         determination,

                  (a) Except as set forth in clause (b) below, 100%.

                  (b) So long as (i) no Default or Event of Default shall have
         occurred and be continuing or would otherwise occur as a result of such
         Disposition and (ii) the Borrowers are in compliance, on a pro forma
         basis after giving effect to such Disposition, with the financial
         covenants set forth in Section 7.03 for the immediately preceding
         reporting period of the Parent and its Subsidiaries, (A) the Applicable
         Prepayment Percentage for the Disposition of the property and assets
         subject to a Sale and Leaseback Transaction shall equal 50% and (B) the
         Applicable Prepayment Percentage for the Calcitriol Disposition shall
         equal 0%."

                  "'Applicable Prepayment Premium' means, as of any date of
         determination, an amount equal to (a) during the period of time from
         and after the First Amendment Effective Date up to the date that is the
         12 month anniversary of the First Amendment Effective Date, 3.5% times
         the sum of (i) the amount of the reduction of the Total Revolving
         Credit Commitment on such date plus (ii) the principal amount of the
         Term Loan prepaid on such date plus (iii) the principal amount of the
         Supplemental Term Loan prepaid on such date, (b) during the period of
         time from and including the date that is the 12 month anniversary of
         the First Amendment Effective Date up to the date that is the 24 month
         anniversary of the First Amendment Effective Date, 2.5% times the sum
         of (i) the amount of the reduction of the Total Revolving Credit
         Commitment on such date plus (ii) the principal amount of the Term Loan
         prepaid on such date plus (iii) the principal amount of the
         Supplemental Term Loan prepaid on such date, (c) during the period of
         time from and including the date that is the 24 month anniversary of
         the First Amendment Effective Date up to the date that is the 30 month
         anniversary of the First Amendment Effective Date, 1.5% times the sum
         of (i) the amount of the reduction of the Total Revolving Credit
         Commitment on such date plus (ii) the principal amount of the Term Loan
         prepaid on such date plus (iii) the principal amount of the
         Supplemental Term Loan prepaid on such date, and (d) during the period
         of time from and including the date that is the 30 month anniversary of
         the First Amendment Effective Date through and including the Final
         Maturity Date, zero."

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                  "'Commitments' means, with respect to each Lender, such
         Lender's Revolving Credit Commitment, Term Loan Commitment and
         Supplemental Term Loan Commitment."

                  "'Consolidated Net Income' means, with respect to any Person
         for any period, the net income (loss) of such Person and its
         Subsidiaries for such period, determined on a consolidated basis and in
         accordance with GAAP, but excluding from the determination of
         Consolidated Net Income (without duplication) (a) any extraordinary or
         non-recurring gains or losses or gains or losses from Dispositions
         (including, without limitation, in the form of royalties or licensing
         fees); provided, that any extraordinary or non-recurring gains or
         losses from Specified Events shall not be excluded from Consolidated
         Net Income, (b) non-cash restructuring charges, and (c) non-cash
         effects of discontinued operations."

                  "'Loan' means the Term Loan, the Supplemental Term Loan or any
         Revolving Loan made by an Agent or a Lender to the Borrowers pursuant
         to Article II hereof."

                  "'Net Cash Proceeds' means, (a) with respect to any
         Disposition by any Person or any of its Subsidiaries, an amount equal
         to the result of (i) the aggregate amount of cash received (directly or
         indirectly) from time to time (whether as initial consideration or
         through the payment or disposition of deferred consideration) by or on
         behalf of such Person or such Subsidiary in connection therewith, minus
         (ii) the sum of (A) the amount of any Indebtedness secured by any Lien
         permitted by Section 7.02(a) on any asset (other than Indebtedness
         assumed by the purchaser of such asset) which is required to be, and
         is, repaid in connection with such Disposition (other than Indebtedness
         under this Agreement), (B) costs and expenses related thereto incurred
         by such Person or such Subsidiary in connection therewith (including,
         without limitation, legal, accounting and investment banking fees, and
         underwriting discounts and commissions), (C) transfer taxes paid to any
         taxing authorities by such Person or such Subsidiary in connection
         therewith, (D) net income taxes to be paid in connection with such
         Disposition (after taking into account any tax credits or deductions
         and any tax sharing arrangements), (E) reasonable reserves for
         indemnification obligations in connection with such Disposition in an
         aggregate amount not to exceed $500,000 during the term of this
         Agreement and (F) an amount equal to the product of (1) the result of
         (x) the aggregate amount of cash described in clause (a)(i) above minus
         (y) the sum of the deductions therefrom described in clauses (ii)(A)
         through (ii)(E) above times (2) a fraction the numerator of which is
         the Applicable Prepayment Premium and the denominator of which is the
         sum of (x) 1 plus (y) the Applicable Prepayment Premium, (b) with
         respect to the issuance or incurrence of any Indebtedness by any Person
         or any of its Subsidiaries, or the sale or issuance by any Person or
         any of its Subsidiaries of any shares of its Capital Stock, an amount
         equal to the result of (i) the aggregate amount of cash received
         (directly or indirectly) from time to time (whether as initial
         consideration or through the payment or disposition of deferred
         consideration) by or on behalf of such Person or such Subsidiary in
         connection therewith, minus (ii) the sum of (A) costs and expenses
         related thereto incurred by such Person or such Subsidiary in
         connection therewith (including, without limitation, legal, accounting
         and investment banking fees,

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         and underwriting discounts and commissions), (B) transfer taxes paid by
         such Person or such Subsidiary in connection therewith and (C) net
         income taxes to be paid in connection therewith (after taking into
         account any tax credits or deductions and any tax sharing
         arrangements), and (c) with respect to any Extraordinary Receipts
         received by any Person or any of its Subsidiaries, an amount equal to
         the result of (i) the aggregate amount of cash received (directly or
         indirectly) from time to time by or on behalf of such Person or such
         Subsidiary in connection therewith, minus (ii) the sum of (A)
         reasonable expenses related to the collection thereof incurred by such
         Person or such Subsidiary and (B) net income taxes to be paid in
         connection with such Extraordinary Receipts (after taking into account
         any tax credits or deductions and any tax sharing arrangements); in the
         case of each of clauses (a), (b) and (c), to the extent, but only to
         the extent, that the amounts so deducted are (xx) actually paid to a
         Person that, except in the case of reasonable out-of-pocket expenses,
         is not an Affiliate of such Person or any of its Subsidiaries and (yy)
         properly attributable to such transaction or to the asset that is the
         subject thereof, as the case may be."

                  "'Pro Rata Share' means:

                  (a) with respect to a Lender's obligation to make Revolving
         Loans and receive payments of interest, fees, and principal with
         respect thereto, the percentage obtained by dividing (i) such Lender's
         Revolving Credit Commitment, by (ii) the Total Revolving Credit
         Commitment, provided, that, if the Total Revolving Credit Commitment
         has been reduced to zero, the numerator shall be the aggregate unpaid
         principal amount of such Lender's Revolving Loans (including Collateral
         Agent Advances) and its interest in the Letter of Credit Obligations
         and the denominator shall be the aggregate unpaid principal amount of
         all Revolving Loans (including Collateral Agent Advances) and Letter of
         Credit Obligations,

                  (b) with respect to a Lender's obligation to make the Term
         Loan and receive payments of interest, fees, and principal with respect
         thereto, the percentage obtained by dividing (i) such Lender's Term
         Loan Commitment, by (ii) the Total Term Loan Commitment, provided that
         if the Total Term Loan Commitment has been reduced to zero, the
         numerator shall be the aggregate unpaid principal amount of such
         Lender's portion of the Term Loan and the denominator shall be the
         aggregate unpaid principal amount of the Term Loan,

                  (c) with respect to a Lender's obligation to make the
         Supplemental Term Loan and receive payments of interest, fees, and
         principal with respect thereto, the percentage obtained by dividing (i)
         the sum of such Lender's Supplemental Term Loan Commitment plus the
         aggregate unpaid principal amount of such Lender's portion of the
         Supplemental Term Loan, by (ii) the sum of the Total Supplemental Term
         Loan Commitment plus the unpaid principal amount of the Supplemental
         Term Loan, and

                  (d) with respect to all other matters (including, without
         limitation, the indemnification obligations arising under Section
         10.05), the percentage obtained by dividing (i) the sum of such
         Lender's Revolving Credit Commitment plus such Lender's Supplemental
         Term Loan Commitment plus the aggregate unpaid principal amount of

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         such Lender's portion of the Term Loan and the Supplemental Term Loan,
         by (ii) the sum of the Total Revolving Credit Commitment plus the Total
         Supplemental Term Loan Commitment plus the aggregate unpaid principal
         amount of the Term Loan and the Supplemental Term Loan, provided, that,
         if such Lender's Revolving Credit Commitment shall have been reduced to
         zero, such Lender's Revolving Credit Commitment shall be deemed to be
         the aggregate unpaid principal amount of such Lender's Revolving Loans
         (including Collateral Agent Advances) and its interest in the Letter of
         Credit Obligations and if the Total Revolving Credit Commitment shall
         have been reduced to zero, the Total Revolving Credit Commitment shall
         be deemed to be the aggregate unpaid principal amount of all Revolving
         Loans (including Collateral Agent Advances) and Letter of Credit
         Obligations."

                  "'Senior Subordinated Note Indenture' means the Indenture,
         dated as of March 28, 2002, by and among the Parent and the Trustee for
         the Senior Subordinated Noteholders, as amended by the Supplemental
         Indenture dated as of April 20, 2004 and as further amended by a Second
         Supplemental Indenture on the terms described in the Second Consent
         Solicitation Statement."

                  "'Term Loan Obligations' means any Obligations with respect to
         the Term Loan and/or the Supplemental Term Loan (including without
         limitation, the principal thereof, the interest thereon, and the fees
         and expenses specifically related thereto)."

                  "'Total Commitment' means the sum of the Total Revolving
         Credit Commitment, the Total Term Loan Commitment and the Total
         Supplemental Term Loan Commitment."

                           (iii) The following definitions are hereby added to
         Section 1.01 of the Financing Agreement in the appropriate alphabetical
         order:

                  "'Calcitriol Disposition' means the Disposition described in
         clause (b) of the definition of Specified Events."

                  "'Fourth Amendment Effective Date' means the date on which all
         of the conditions precedent to the effectiveness of the Fourth
         Amendment to Financing Agreement dated as of October 22, 2004, by and
         among the Borrowers, the Lenders and the Agents have been fulfilled or
         waived."

                  "'Rothschild' means Rothschild, Inc."

                  "'Sale Process' has the meaning specified therefor in Section
         7.01(s).

                  "'Second Consent Solicitation Statement' means the Consent
         Solicitation Statement, in form and substance reasonably satisfactory
         to the Agents, as such Second Consent Solicitation Statement may be
         amended with the consent of the Agents."

                  "'Specified Events' means, collectively, (a) the amendment of
         the MVI Sale Agreement pursuant to the terms of Amendment No. 2 to the
         MVI Sale Agreement dated as of September 16, 2004, pursuant to which
         the Parent will receive an accelerated

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         purchase price adjustment under the MVI Sale Agreement, (b) the
         Disposition of the Parent's rights to its Calcitriol product pursuant
         to the terms of the Termination Agreement by and between the Parent and
         SICOR Pharmaceuticals, Inc., on terms substantially the same as or
         better to Parent than the terms set forth in the draft Termination
         Agreement provided by the Parent to the Collateral Agent on or prior to
         October 21, 2004, and (c) the Disposition of the Parent's Investment in
         Aesgen, Inc. pursuant to the terms of the Agreement and Plan of Merger
         and Reorganization, dated as of August 30, 2004, among MGI Pharma,
         Inc., MGIP Acquisition Corp., Aesgen Inc. and Timothy I. Maudlin, as
         equityholder's representative."

                  "'Supplemental Term Loan' means the loans made by the
         Supplemental Term Loan Lenders to the Borrowers pursuant to Article II
         hereof."

                  "'Supplemental Term Loan Commitment' means, with respect to
         each Lender, the commitment of such Lender to make the Supplemental
         Term Loan to the Borrowers in the amount set forth in Schedule 1.01(A)
         hereto, as the same may be terminated or reduced from time to time in
         accordance with the terms of this Agreement."

                  "'Supplemental Term Loan Final Draw Date' means that certain
         date, if any, after the Supplemental Term Loan Second Draw Date and on
         or prior to January 15, 2005, on which the Supplemental Term Loan
         Lenders make a portion of the Supplemental Term Loan available to the
         Borrowers in accordance with Section 2.01(a)(iii)(C) hereof."

                  "'Supplemental Term Loan Lender' means a Lender with a
         Supplemental Term Loan Commitment."

                  "'Supplemental Term Loan Second Draw Date' means that certain
         date, if any, after the Fourth Amendment Effective Date and prior to
         the Supplemental Term Loan Final Draw Date, on which the Supplemental
         Term Loan Lenders make a portion of the Supplemental Term Loan
         available to the Borrowers in accordance with Section 2.01(a)(iii)(B)
         hereof."

                  "'Total Supplemental Term Loan Commitment' means the sum of
         the amounts of the Lenders' Supplemental Term Loan Commitments."

                  (c) Commitments. Section 2.01 of the Financing Agreement is
hereby amended as follows:

                           (i) Section 2.01(a) of the Financing Agreement is
         hereby amended by deleting the "and" at the end of clause (i) thereof,
         replacing the "." at the end of clause (ii)(B) thereof with "; and" and
         adding the following new clause (iii):

                           "(iii) each Supplemental Term Loan Lender severally
         agrees to make the Supplemental Term Loan to the Borrowers, in an
         aggregate principal amount not to exceed the amount of such Lender's
         Supplemental Term Loan Commitment, as follows:

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                                    (A) On the Fourth Amendment Effective Date,
         an amount equal to such Supplemental Term Loan Lender's Pro Rata Share
         of an amount equal to not less than 50% of the Total Supplemental Term
         Loan Commitment;

                                    (B) On the Supplemental Term Loan Second
         Draw Date, an amount equal to such Supplemental Term Loan Lender's Pro
         Rata Share of an amount not to exceed the remaining undrawn amount, if
         any, of the Supplemental Term Loan Commitment as of the date thereof;
         and

                                    (C) On the Supplemental Term Loan Final Draw
         Date, an amount equal to such Supplemental Term Loan Lender's Pro Rata
         Share of an amount not to exceed the remaining undrawn amount, if any,
         of the Supplemental Term Loan Commitment as of the date thereof."

                           (ii) Section 2.01(b) of the Financing Agreement is
         hereby amended by redesignating existing clause (iii) thereof as new
         clause (iv) and adding the following new clause (iii):

                           "(iii) The aggregate principal amount of the
         Supplemental Term Loan made on the Fourth Amendment Effective Date, the
         Supplemental Term Loan Second Draw Date and the Supplemental Term Loan
         Final Draw Date shall not exceed the Total Supplemental Term Loan
         Commitment. Any principal amount of the Supplemental Term Loan which is
         repaid or prepaid may not be reborrowed."

                  (d) Making the Loans. Section 2.02 of the Financing Agreement
is hereby amended as follows:

                           (i) The second sentence of Section 2.02(a) of the
         Financing Agreement is hereby amended in its entirety to read as
         follows:

         "Such Notice of Borrowing shall be irrevocable and shall specify (i)
         the principal amount of the proposed Loan (which, in the case of a
         LIBOR Rate Loan, must be in a minimum amount of $1,000,000 and in
         integral multiples of $100,000 in excess thereof), (ii) whether such
         Loan is requested to be a Reference Rate Loan or a LIBOR Rate Loan and,
         in the case of a LIBOR Rate Loan, the initial Interest Period with
         respect thereto, (iii) in the case of Loans requested on the Effective
         Date, the Fourth Amendment Effective Date, the Second Draw Date, the
         Supplemental Term Loan Second Draw Date or the Supplemental Term Loan
         Final Draw Date, whether such Loan is requested to be a Revolving Loan,
         the Term Loan or the Supplemental Term Loan, (iv) the use of the
         proceeds of such proposed Loan, and (v) the proposed borrowing date,
         which must be a Business Day, and, (x) with respect to the Term Loan,
         must be the Effective Date or the Second Draw Date and (y) with respect
         to the Supplemental Term Loan, must be the Fourth Amendment Effective
         Date, the Supplemental Term Loan Second Draw Date or the Supplemental
         Term Loan Final Draw Date."

                           (ii) Section 2.02(c)(i) of the Financing Agreement is
         hereby amended in its entirety to read as follows:

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                           "(c)(i) Except as otherwise provided in this
         subsection 2.02(c) and Section 2.01(a)(ii)(B), all Loans under this
         Agreement shall be made by the Lenders simultaneously and
         proportionately to their Pro Rata Shares of the Total Revolving Credit
         Commitment, the Total Term Loan Commitment and the Total Supplemental
         Term Loan Commitment, as the case may be, it being understood that no
         Lender shall be responsible for any default by any other Lender in that
         other Lender's obligations to make a Loan requested hereunder, nor
         shall the Commitment of any Lender be increased or decreased as a
         result of the default by any other Lender in that other Lender's
         obligation to make a Loan requested hereunder, and each Lender shall be
         obligated to make the Loans required to be made by it by the terms of
         this Agreement regardless of the failure by any other Lender."

                  (e) Repayment of Loans. Section 2.03(b) of the Financing
Agreement is hereby amended in its entirety to read as follows:

         "(b) The outstanding principal of the Term Loan and the Supplemental
Term Loan shall be repaid in full on the earlier of (i) if Excess Availability
is less than $10,000,000 on such date, the date of the termination of the Total
Revolving Credit Commitment and (ii) the Final Maturity Date."

                  (f) Interest. Section 2.04 of the Financing Agreement is
hereby amended as follows:

                           (i) Section 2.04(a) of the Financing Agreement is
         hereby amended in its entirety to read as follows:

                  "(a) Revolving Loans. Each Revolving Loan that is a Reference
         Rate Loan shall bear interest on the principal amount thereof from time
         to time outstanding, from the date of such Loan until such principal
         amount becomes due, at a rate per annum equal to the Reference Rate
         plus 7.25%. Each Revolving Loan that is a LIBOR Rate Loan shall bear
         interest on the principal amount thereof from time to time outstanding,
         from the date of such Loan until such principal amount is repaid, at a
         rate per annum equal to the LIBOR Rate plus 8.25%."

                           (ii) Section 2.04(b) of the Financing Agreement is
         hereby amended in its entirety to read as follows:

                  "(b) Term Loan; Supplemental Term Loan.

                           (i) Each portion of the Term Loan that is a Reference
         Rate Loan shall bear interest on the principal amount thereof from time
         to time outstanding, from the date of such Loan until such principal
         amount is repaid, at a rate per annum equal to the Reference Rate plus
         7.25%. Each portion of the Term Loan that is a LIBOR Rate Loan shall
         bear interest on the principal amount thereof from time to time
         outstanding, from the date of such Loan until such principal amount is
         repaid, at a rate per annum equal to the LIBOR Rate plus 8.25%.

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                           (ii) Each portion of the Supplemental Term Loan that
         is a Reference Rate Loan shall bear interest on the principal amount
         thereof from time to time outstanding, from the date of such Loan until
         such principal amount is repaid, at a rate per annum equal to the
         Reference Rate plus 7.25%. Each portion of the Supplemental Term Loan
         that is a LIBOR Rate Loan shall bear interest on the principal amount
         thereof from time to time outstanding, from the date of such Loan until
         such principal amount is repaid, at a rate per annum equal to the LIBOR
         Rate plus 8.25%."

                  (g) Reduction of Commitments. Section 2.05(a) of the Financing
Agreement is hereby amended by inserting the following new clause (iii) at the
end thereof:

                  "(iii) Supplemental Term Loan. The Total Supplemental Term
         Loan Commitment shall terminate at 5:00 p.m. (New York City time) (A)
         on the Fourth Amendment Effective Date, with respect to the greater of
         (1) the amount of the Supplemental Term Loan drawn by the Borrowers on
         such date and (2) 50% of the Total Supplemental Term Loan Commitment,
         (B) on the Supplemental Term Loan Second Draw Date, with respect to the
         amount of the Supplemental Term Loan drawn by the Borrowers on such
         date, and (C) on the earlier to occur of (A) the Supplemental Term Loan
         Final Draw Date and (B) January 15, 2005, with respect to any remaining
         undrawn amount of the Supplemental Term Loan Commitment as of such
         date."

                  (h) Optional Prepayment. Section 2.05(b)(ii) of the Financing
Agreement is hereby amended in its entirety to read as follows:

                  "(ii) Term Loan and Supplemental Term Loan. The Borrowers may,
         at any time and from time to time, upon at least 3 Business Days' prior
         written notice to the Administrative Agent, prepay the principal of the
         Term Loan and/or the Supplemental Term Loan, in whole or in part. Each
         prepayment of the Term Loan and/or the Supplemental Term Loan made
         pursuant to this clause (b)(ii) shall be accompanied by the payment of
         (A) accrued interest to the date of such payment on the amount prepaid
         and (B) the Applicable Prepayment Premium, if any, payable in
         connection with such prepayment."

                  (i) Mandatory Prepayment. Section 2.05(c) of the Financing
Agreement is hereby amended as follows:

                           (i) Section 2.05(c)(i) of the Financing Agreement is
         hereby amended in its entirety to read as follows:

                  "(i) The Borrowers will immediately prepay the outstanding
         principal amount of the Term Loan and the Supplemental Term Loan in the
         event that (A) the Total Revolving Credit Commitment is terminated for
         any reason and (B) Excess Availability on the date of the termination
         of the Total Revolving Credit Commitment is less than $10,000,000."

                           (ii) Section 2.05(c)(iii) of the Financing Agreement
         is hereby amended in its entirety to read as follows:

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                  "(iii) Within 3 days of any Disposition by any Loan Party
         pursuant to Section 7.02(c)(ii), the Borrowers shall be required to
         either (A) prepay the outstanding principal amount of the Loans of such
         Lender in accordance with Section 2.05(d) in an amount equal to such
         Lender's Pro Rata Share of the Applicable Prepayment Percentage of the
         Net Cash Proceeds received by such Person in connection with such
         Disposition or (B) at the election of each Lender in its sole
         discretion and in accordance with the procedures set forth in Section
         2.05(c)(vii), (1) prepay the outstanding principal amount of the Loans
         of such Lender in accordance with Section 2.05(d) in an amount equal to
         such Lender's Pro Rata Share of the Applicable Prepayment Percentage of
         the Net Cash Proceeds received by such Person in connection with such
         Disposition or (2) deposit such Lender's Pro Rata Share of such Net
         Cash Proceeds into a cash collateral account with a commercial bank
         designated by the Collateral Agent (the "Cash Collateral Account") (and
         when so deposited such Net Cash Proceeds shall constitute Collateral
         for the Obligations then outstanding) for application at a later date
         to the acquisition of replacement property or assets approved by the
         Required Lenders for the property or assets so disposed of, provided,
         that (x) until so applied in accordance with either of clauses (y) or
         (z) of this clause (iii), such Net Cash Proceeds shall remain in such
         cash collateral account, (y) such Net Cash Proceeds must be applied and
         such property or assets must be replaced with property or assets
         approved by the Required Lenders within 360 days after the date of
         receipt thereof, and (z) upon (1) the occurrence and during the
         continuance of an Event of Default or (2) the expiration of such 360
         day period, each Lender's Pro Rata Share of such Net Cash Proceeds, if
         not so applied, shall be applied to the prepayment of such Lender's
         Loans in accordance with Section 2.05(d). Notwithstanding the
         foregoing, (xx) the aggregate amount of all Net Cash Proceeds received
         by the Loan Parties with respect to Sale and Leaseback Transactions not
         subject to prepayment pursuant to this Section 2.05(c)(iii) shall not
         exceed $10,000,000 in the aggregate during the term of this Agreement,
         (yy) the Applicable Prepayment Percentage with respect to Dispositions
         of property or assets identified in clause (b) of the definition of
         Applicable Prepayment Percentage as "All other property and assets"
         shall apply only to the extent that the aggregate amount of all Net
         Cash Proceeds received by all Loan Parties (and not paid to the
         Administrative Agent as a prepayment of the Loans) shall exceed for all
         such Dispositions $1,000,000 in any Fiscal Year (provided, further that
         the aggregate amount of all such Net Cash Proceeds received by all Loan
         Parties (and not paid to the Administrative Agent as a prepayment of
         the Loans), when taken together with the aggregate amount of
         Extraordinary Receipts not subject to prepayment pursuant to Section
         2.05(c)(v) shall not exceed $3,000,000 in the aggregate during the term
         of this Agreement), and (zz) the Loan Parties shall not permit Excess
         Proceeds (as defined in the Senior Subordinated Note Indenture) to
         exceed $5,000,000 at any time. Nothing contained in this clause (iii)
         shall permit any Loan Party or any of its Subsidiaries to make a
         Disposition of any property or assets other than in accordance with
         Section 7.02(c)(ii)."

                  (j) Application of Payments. Section 2.05(d) of the Financing
Agreement is hereby amended as follows:

                           (i) Section 2.05(d)(i) of the Financing Agreement is
         hereby amended by deleting the phrase "first, ratably to the Revolving
         Loans, until paid in full,

                                      -10-

<PAGE>

         second, to the Term Loan, until paid in full, and third, ratably to all
         other Obligations, until paid in full" therein and substituting in lieu
         thereof "first, ratably to the Revolving Loans, until paid in full,
         second, ratably to the Term Loan and the Supplemental Term Loan, until
         paid in full, and third, ratably to all other Obligations, until paid
         in full".

                           (ii) Sections 2.05(d)(ii), 2.05(d)(iii), 2.05(d)(iv)
         and 2.05(d)(v) of the Financing Agreement are hereby amended by
         deleting the phrase "first, to the Term Loan, until paid in full,
         second, ratably to the Revolving Loans, until paid in full, and third,
         ratably to all other Obligations, until paid in full" therein and
         substituting in lieu thereof "first, ratably to the Term Loan and the
         Supplemental Term Loan, until paid in full, second, ratably to the
         Revolving Loans, until paid in full, and third, ratably to all other
         Obligations, until paid in full".

                  (k) Fees. Section 2.06(a) of the Financing Agreement is hereby
amended in its entirety to read as follows:

                  "(a) Unused Line Fee; Unused Commitment Fee.

                           (i) From and after the Effective Date and until the
         Final Maturity Date, the Borrowers shall pay to the Administrative
         Agent for the account of the Revolving Loan Lenders, in accordance with
         their Pro Rata Shares, an unused line fee (the "Unused Line Fee"),
         which shall accrue at the rate per annum of 1.00% on the actual daily
         excess, if any, of the Total Revolving Credit Commitment over the sum
         of the principal amount of all Revolving Loans and Letter of Credit
         Obligations outstanding from time to time and shall be payable
         quarterly in arrears on the last Business Day of each calendar quarter
         commencing on June 30, 2004.

                           (ii) From and after the Fourth Amendment Effective
         Date and until the earlier to occur of the Supplemental Term Loan Final
         Draw Date and January 15, 2005, the Borrowers shall pay to the
         Administrative Agent for the account of the Supplemental Term Loan
         Lenders, in accordance with their Pro Rata Shares, an unused commitment
         fee, which shall accrue at the rate per annum of 0.75% on the actual
         daily excess, if any, of the Total Supplemental Term Loan Commitment
         over the principal amount of the Supplemental Term Loan outstanding
         from time to time and shall be payable monthly in arrears on the last
         Business Day of each month commencing on October 31, 2004."

                  (l) Apportionment of Payments. Section 4.04(c) of the
Financing Agreement is hereby amended in its entirety to read as follows:

                  "(c) In each instance, so long as no Event of Default has
         occurred and is continuing, Section 4.04(b) shall not be deemed to
         apply to any payment by the Borrowers specified by the Administrative
         Borrower to the Administrative Agent to be for the payment of Term Loan
         Obligations then due and payable under any provision of this Agreement
         or the prepayment of all or part of the principal of the Term Loan or
         the Supplemental Term Loan in accordance with the terms and conditions
         of Section 2.05."

                                      -11-

<PAGE>

                  (m) Use of Proceeds. Section 6.01(t) of the Financing
Agreement is hereby amended in its entirety to read as follows:

                  "(t) Use of Proceeds. The proceeds of the Loans shall be used
         to, together with the Net Cash Proceeds from the MVI Sale, (i)
         refinance existing Indebtedness of the Loan Parties under the Existing
         Credit Facility, (ii) fund the interest payments (and any default
         interest payable thereon) due and payable by the Parent on April 1,
         2004 and October 1, 2004, in respect of its Senior Subordinated Notes,
         (iii) provide for ongoing working capital and general corporate
         purposes of the Loan Parties, and (iv) to pay for fees, costs and
         expenses incurred in connection with the transactions contemplated
         hereby."

                  (n) Affirmative Covenants. Section 7.01 of the Financing
Agreement is hereby amended as follows:

                           (i) Section 7.01(a)(iv)(A) of the Financing Agreement
         is hereby amended by deleting clause (2) therein and substituting in
         lieu thereof the following:

         "(2) attaching a schedule showing the calculations of the financial
         covenants specified in Section 7.03."

                           (ii) Section 7.01 of the Financing Agreement is
         hereby amended by adding the following new subsection (s):

                  "(s) Retention of Rothschild. In the event that Rothschild
         ceases for any reason to be actively engaged by the Borrowers to, among
         other things, assist the Borrowers with respect to the evaluation of
         potential asset divestitures, including the exploration of the
         potential sale of some or all of the assets comprising the Borrowers'
         Pharmaceuticals Division, as well as other assets that are no longer
         strategic to the Borrowers' long-term business plan (the "Sale
         Process"), Borrowers shall (i) within 2 days thereof, provide the
         Collateral Agent with written notice of such cessation of engagement
         and (ii) within 20 days thereof, retain, and continue at all times
         thereafter the retention of, a financial advisor in replacement thereof
         acceptable to the Collateral Agent. The scope of such retention and the
         duties of such replacement financial advisor shall be acceptable to the
         Collateral Agent."

                  (o) Financial Covenants. Section 7.03 of the Financing
Agreement is hereby amended in its entirety to read as follows:

                  "Section 7.03 Financial Covenants. So long as any principal of
         or interest on any Loan, Letter of Credit Obligation or any other
         Obligation (whether or not due) shall remain unpaid or any Lender shall
         have any Commitment hereunder, each Loan Party shall not, unless the
         Required Lenders shall otherwise consent in writing:

                           (a) Intentionally Omitted.

                                      -12-

<PAGE>

                           (b) Leverage Ratio. Permit the Leverage Ratio of the
         Parent and its Subsidiaries as of the end of each period of four (4)
         consecutive fiscal quarters of the Parent and its Subsidiaries for
         which the last quarter ends on a date set forth below to be greater
         than the applicable ratio set forth below:

                        Fiscal Quarter End             Leverage Ratio
                        ------------------             --------------

                        September 30, 2004               2.75:1.00

                        December 31, 2004                2.75:1.00

                        March 31, 2005                   2.65:1.00

                        June 30, 2005                    2.60:1.00

                        September 30, 2005               2.50:1.00

                        December 31, 2005                2.40:1.00

                        March 31, 2006                   2.40:1.00

                        June 30, 2006                    2.40:1.00

                        September 30, 2006               2.25:1.00

                        December 31, 2006                2.25:1.00

                        March 31, 2007                   2.25:1.00

                        June 30, 2007                    2.25:1.00

         Notwithstanding the foregoing, (i) if Consolidated EBITDA of the Parent
         and its Subsidiaries for the fiscal quarter of the Parent and its
         Subsidiaries ended September 30, 2004 is greater than $2,000,000, then
         the Leverage Ratio of the Parent and its Subsidiaries shall not be
         tested under this Section 7.03(b) as of the end of such period, (ii) if
         Consolidated EBITDA of the Parent and its Subsidiaries for the 2 fiscal
         quarters of the Parent and its Subsidiaries ended December 31, 2004 is
         greater than $10,500,000, then the Leverage Ratio of the Parent and its
         Subsidiaries shall not be tested under this Section 7.03(b) as of the
         end of such period, and (iii) if Consolidated EBITDA of the Parent and
         its Subsidiaries for the fiscal quarter of the Parent and its
         Subsidiaries ended March 31, 2005 is greater than $8,100,000, then the
         Leverage Ratio of the Parent and its Subsidiaries shall not be tested
         under this Section 7.03(b) as of the end of such period.

                           (c) Fixed Charge Coverage Ratio. Permit the Fixed
         Charge Coverage Ratio of the Parent and its Subsidiaries as at the end
         of each period set forth below to be less than the applicable ratio set
         forth below:

                               Period                Fixed Charge Coverage Ratio
                               ------                ---------------------------

                     The 1 fiscal quarter period             1.10:1.00
                     ending September 30, 2004

                     The 2 fiscal quarter period             1.10:1.00
                     ending December 31, 2004

                                      -13-

<PAGE>

                               Period                Fixed Charge Coverage Ratio
                               ------                ---------------------------

                     The 3 fiscal quarter period             1.20:1.00
                     ending March 31, 2005

                     The 4 fiscal quarter period             1.25:1.00
                     ending June 30, 2005

                     The 4 fiscal quarter period             1.30:1.00
                     ending September 30, 2005

                     The 4 fiscal quarter period             1.35:1.00
                     ending December 31, 2005

                     The 4 fiscal quarter period             1.40:1.00
                     ending March 31, 2006

                     The 4 fiscal quarter period             1.40:1.00
                     ending June 30, 2006

                     The 4 fiscal quarter period             1.50:1.00
                     ending September 30, 2006

                     The 4 fiscal quarter period             1.50:1.00
                     ending December 31, 2006

                     The 4 fiscal quarter period             1.50:1.00
                     ending March 31, 2007

                     The 4 fiscal quarter period             1.50:1.00
                     ending June 30, 2007

         Notwithstanding the foregoing, (i) if Consolidated EBITDA of the Parent
         and its Subsidiaries for the fiscal quarter of the Parent and its
         Subsidiaries ended September 30, 2004 is greater than $2,000,000, then
         the Fixed Charge Coverage Ratio of the Parent and its Subsidiaries
         shall not be tested under this Section 7.03(c) as of the end of such
         period, (ii) if Consolidated EBITDA of the Parent and its Subsidiaries
         for the 2 fiscal quarters of the Parent and its Subsidiaries ended
         December 31, 2004 is greater than $10,500,000, then the Fixed Charge
         Coverage Ratio of the Parent and its Subsidiaries shall not be tested
         under this Section 7.03(c) as of the end of such period, and (iii) if
         Consolidated EBITDA of the Parent and its Subsidiaries for the fiscal
         quarter of the Parent and its Subsidiaries ended March 31, 2005 is
         greater than $8,100,000, then the Fixed Charge Coverage Ratio of the
         Parent and its Subsidiaries shall not be tested under this Section
         7.03(c) as of the end of such period.

                           (d) Excess Availability. Permit Excess Availability
         at any time to be less than an amount equal to the sum of (i) (A) prior
         to the date of the termination of the Total Revolving Credit Commitment
         for any reason (and except as set forth in clause (B) of this Section
         7.03(d)), $5,000,000, (B) during the period from and including March
         31, 2005 through and including May 15, 2005, $15,000,000 and (C) at all
         other times, $10,000,000 and (ii) 50% times the amount of Specified
         Costs and Expenses incurred in excess of $2,500,000."

                                      -14-

<PAGE>

                  (p) Events of Default. Section 9.01 of the Financing Agreement
is hereby amended as follows:

                           (i) Section 9.01(c)(i) is hereby amended in its
         entirety to read as follows:

                  "(i) fail to perform or comply with any covenant or agreement
         contained in Section 5.03, Sections 7.01(a)(viii), 7.01(c),
         7.01(d)(i)(A), 7.01(f), 7.01(h) (other than with respect to the
         delivery of insurance policies thereunder), 7.01(n), 7.01(p), 7.01(r)
         or 7.01(s), Section 7.02, Section 7.03 (other than Section 7.03(a) and,
         during the period from October 1, 2004 through and including November
         30, 2004, Section 7.03(d)) or Article VIII, or any Loan Party shall
         fail to perform or comply with any covenant or agreement contained in
         the Fee Letter, any Security Agreement to which it is a party, any
         Pledge Agreement to which it is a party, or any Mortgage to which it is
         a party;"

                           (ii) Section 9.01 of the Financing Agreement is
         hereby amended by deleting the "or" at the end of clause (v) therein,
         inserting "or" after the semicolon at the end of clause (w) therein and
         inserting the following new clause (x):

                  "(x) the Borrowers shall fail to pursue in good faith the Sale
         Process;"

                  (q) Assignments and Participations. Section 12.07(b)(iii) of
the Financing Agreement is hereby amended by deleting subclause (x) therein and
substituting in lieu thereof the following:

         "(x) in the case of an assignment by a Lender to one or more other
         lenders or other entities of all or a portion of its Term Loan
         Commitment and the Term Loan made by it or of its Supplemental Term
         Loan Commitment and the Supplemental Term Loan made by it, the
         Collateral Agent and"

                  (r) Schedules. Schedule 1.01(A) to the Financing Agreement is
hereby amended in its entirety to read as set forth on Annex A attached hereto.

                  (s) Exhibit D. Clause (iii) of Exhibit D to the Financing
Agreement is hereby amended in its entirety to read as follows:

                  "(iii) The Proposed Loan is [a Revolving Loan] [a portion of
         the Supplemental Term Loan]".

                  (t) Exhibit E. The second paragraph of Exhibit E to the
Financing Agreement is hereby amended by deleting the phrase "[a portion of the
Term Loan]" therein and substituting in lieu thereof "[a portion of the
[Supplemental] Term Loan]".

         3. Waiver and Consent.

                  (a) Pursuant to the request of the Borrowers and in accordance
with Section 12.02 of the Financing Agreement, the Agents and the Lenders hereby
(i) consent to, and

                                      -15-

<PAGE>

waive any Event of Default that has or would otherwise arise
under Section 9.01(a) or Section 9.01(c) of the Financing Agreement by reason
of, the occurrence of the Calcitriol Disposition.

                  (b) The waivers and consents in this Section 3 shall be
effective only in this specific instance and for the specific purpose set forth
herein and do not allow for any other or further departure from the terms and
conditions of the Financing Agreement or any other Loan Document, which terms
and conditions shall continue in full force and effect.

         4. Additional Lenders. Each of the Borrowers, the Agents and the
existing Lenders hereby consents to [SPCP Group LLC and SPCP Group III, L.L.C.
(each an "Additional Lender")] becoming a Lender under the Financing Agreement.
Commencing on the Fourth Amendment Effective Date, each Additional Lender will
be a party to the Financing Agreement, agrees to be bound by the terms and
conditions of the Financing Agreement and the Loan Documents and will have all
of the rights and obligations of a Lender under the Financing Agreement and the
Loan Documents.

         5. Conditions Precedent. This Amendment shall become effective only
upon satisfaction in full of the following conditions precedent (the first date
upon which all such conditions have been satisfied being herein called the
"Fourth Amendment Effective Date"):

                  (a) Representations and Warranties; No Event of Default. The
representations and warranties contained herein, in Article VI of the Financing
Agreement and in each other Loan Document are true and correct on and as of the
Fourth Amendment Effective Date as though made on and as of such date, except to
the extent that any such representation or warranty expressly relates solely to
an earlier date (in which case such representation or warranty shall be true and
correct on and as of such earlier date); and no Default or Event of Default
shall have occurred and be continuing on the Fourth Amendment Effective Date
either immediately before or after giving effect to this Amendment in accordance
with its terms.

                  (b) Delivery of Documents. The Collateral Agent shall have
received on or before the Fourth Amendment Effective Date, the following, each
in form and substance reasonably satisfactory to the Collateral Agent and,
unless otherwise indicated, dated as of the Fourth Amendment Effective Date:

                           (i) counterparts of this Amendment, duly executed by
         the Borrowers, the Agents and the Lenders;

                           (ii) counterparts of the Second Amendment to Fee
         Letter, dated as of the date hereof, duly executed by the Borrowers and
         the Agents;

                           (iii) an amendment to each Mortgage, in form and
         substance reasonably satisfactory to the Collateral Agent, duly
         executed by the applicable Loan Party, with respect to each Facility;

                           (iv) a copy of the resolutions of each Loan Party,
         certified as of the Fourth Amendment Effective Date by an Authorized
         Officer thereof, authorizing the execution and delivery of this
         Amendment and the other documents to be executed and

                                      -16-

<PAGE>

         delivered by such Person in connection herewith and authorizing the
         transactions contemplated hereby;

                           (v) a certificate of an Authorized Officer of each
         Loan Party, certifying the names and true signatures of the
         representatives of such Loan Party authorized to sign this Amendment
         and the other documents to be executed and delivered by such Person in
         connection herewith, together with evidence of the incumbency of such
         Authorized Officers;

                           (vi) a certificate of an Authorized Officer of the
         Parent, certifying that the Borrowers on a consolidated basis are
         Solvent;

                           (vii) a certificate of an Authorized Officer of each
         Loan Party, certifying as to the matters set forth in clause (a) of
         this Section 5;

                           (viii) an opinion of in-house counsel for the Loan
         Parties and of Robinson, Bradshaw & Hinson, P.A., counsel to the Loan
         Parties, as to such matters as the Lenders may reasonably request
         including, without limitation, an opinion of Robinson, Bradshaw &
         Hinson, P.A. that the Loans made pursuant to the Financing Agreement
         (including the Supplemental Term Loan) constitute "Permitted Debt",
         "Senior Debt" and "Designated Senior Debt" under the Senior
         Subordinated Note Indenture or some derivation thereof reasonably
         satisfactory to the Collateral Agent; and

                           (ix) such other agreements, instruments, approvals,
         opinions and other documents as the Collateral Agent may reasonably
         request.

                  (c) Proceedings. All proceedings in connection with the
transactions contemplated by this Amendment, and all documents incidental
hereto, shall be reasonably satisfactory to the Collateral Agent and its
counsel.

                  (d) Senior Subordinated Note Indenture. The Loan Parties shall
have obtained irrevocable consents of the requisite Senior Subordinated Note
Holders with respect to (i) the waiver of all defaults under the Senior
Subordinated Note Indenture (other than the default related to the payment of
the interest payment due October 1, 2004 on the Senior Subordinated Notes, which
interest payment will be paid substantially concurrently with the initial
borrowing of the Supplemental Term Loan) and (ii) the increase in the Total
Commitment under the Financing Agreement to $180,000,000. The Collateral Agent
shall be satisfied in its sole discretion that the Loans made pursuant to the
Financing Agreement (including the Supplemental Term Loan) constitute "Permitted
Debt", "Senior Debt" and "Designated Senior Debt" under the Senior Subordinated
Note Indenture and that any supplemental indenture delivered in connection with
the foregoing shall have become effective.

                  (e) Fees, Etc. The Borrowers shall have paid all fees, costs,
expenses and taxes then payable by the Borrowers pursuant to the Financing
Agreement and the other Loan Documents, including, without limitation, Section
2.06 and 12.04 of the Financing Agreement.

                                      -17-

<PAGE>

                  (f) Effective Date. The Fourth Amendment Effective Date shall
have occurred on or before Friday, October 29, 2004.

         6. Condition Subsequent. The obligation of the Agents or any Lender to
maintain the Loans and Letters of Credit after the Fourth Amendment Effective
Date is subject to the conditions subsequent that (i) the Borrowers issue the
press release attached hereto as Annex B with respect to this Amendment not
later than the opening of business on Monday, October 25, 2004, as such date may
be extended with the consent of the Agents, and (ii) the Borrowers file Form 8-K
with the SEC, together with a copy of this Amendment, not later than the opening
of business on Monday, October 25, 2004, as such date may be extended with the
consent of the Agents.

         7. Representations and Warranties. Each Borrower represents and
warrants as follows:

                  (a) Organization, Good Standing, Etc. Each Borrower (i) is a
corporation or limited liability company, as the case may be, duly organized,
validly existing and in good standing under the laws of the state of its
organization other than to the extent that the failure to be in good standing in
such state could not reasonably be expected to have a Material Adverse Effect
and (ii) has all requisite power and authority to execute, deliver and perform
this Amendment, and to perform the Financing Agreement, as amended hereby.

                  (b) Authorization, Etc. The execution, delivery and
performance by each Borrower of this Amendment and the performance by each
Borrower of the Financing Agreement, as amended hereby (i) have been duly
authorized by all necessary action, (ii) do not and will not violate or create a
default under any such Borrower's organizational documents or any applicable law
or any material term of any Material Contract, and (iii) except as provided in
the Loan Documents, do not and will not result in or require the creation of any
Lien upon or with respect to any of such Borrower's property.

                  (c) Governmental Approvals. No authorization or approval or
other action by, and no notice to or filing with, any Governmental Authority or
other regulatory body is required in connection with (i) the due execution,
delivery and performance by each Borrower of this Amendment or (ii) the
performance by each Borrower of the Financing Agreement, as amended hereby.

                  (d) Enforceability of Loan Documents. Each of this Amendment
and the Financing Agreement, as amended hereby, and the other Loan Documents, is
a legal, valid and binding obligation of each Borrower party hereto, enforceable
against such Borrower in accordance with the terms thereof, except as
enforceability may be limited by applicable bankruptcy, insolvency,
reorganization, moratorium or other similar laws affecting creditors' rights
generally.

                  (e) Representations and Warranties; No Default. The
representations and warranties contained herein, in Article VI of the Financing
Agreement and in each other Loan Document are true and correct on and as of the
Fourth Amendment Effective Date as though made on and as of such date, except to
the extent that any such representation or warranty

                                      -18-

<PAGE>

expressly relates solely to an earlier date (in which case such representation
or warranty shall be true and correct on and as of such earlier date); and no
Default or Event of Default shall have occurred and be continuing on the Fourth
Amendment Effective Date either immediately before or after giving effect to
this Amendment in accordance with its terms.

         8. Continued Effectiveness of the Financing Agreement.

                  (a) Ratifications. Except as otherwise expressly provided
herein, (i) the Financing Agreement and the other Loan Documents are, and shall
continue to be, in full force and effect and are hereby ratified and confirmed
in all respects, except that on and after the Fourth Amendment Effective Date
(A) all references in the Financing Agreement to "this Agreement", "hereto",
"hereof", "hereunder" or words of like import referring to the Financing
Agreement shall mean the Financing Agreement as amended by this Amendment and
(B) all references in the other Loan Documents to the "Financing Agreement",
"thereto", "thereof", "thereunder" or words of like import referring to the
Financing Agreement shall mean the Financing Agreement as amended by this
Amendment, (ii) to the extent that the Financing Agreement or any other Loan
Document purports to pledge to the Collateral Agent, or to grant to the
Collateral Agent a security interest in or lien on, any collateral as security
for the Obligations, such pledge or grant of a security interest or lien is
hereby ratified and confirmed in all respects, and (iii) the execution, delivery
and effectiveness of this Amendment shall not operate as an amendment of any
right, power or remedy of the Agents or the Lenders under the Financing
Agreement or any other Loan Document, nor constitute an amendment of any
provision of the Financing Agreement or any other Loan Document.

                  (b) No Waivers. This Amendment is not a waiver of, or consent
to, any Default or Event of Default now existing or hereafter arising under the
Financing Agreement or any other Loan Document and the Agents and the Lenders
expressly reserve all of their rights and remedies under the Financing Agreement
and the other Loan Documents, under applicable law or otherwise.

                  (c) Amendment as Loan Document. Each Borrower confirms and
agrees that this Amendment shall constitute a Loan Document under the Financing
Agreement. Accordingly, it shall be an Event of Default under the Financing
Agreement if any representation or warranty made or deemed made by any Borrower
under or in connection with this Amendment shall have been incorrect in any
material respect when made or deemed made or if any Borrower fails to perform or
comply with any covenant or agreement contained herein.

         9. Release. Each Borrower hereby acknowledges and agrees that: (a)
neither it nor any of its Affiliates has any claim or cause of action against
any Agent or any Lender (or any of their respective Affiliates, officers,
directors, employees, attorneys, consultants or agents) and (b) each Agent and
each Lender has heretofore properly performed and satisfied in a timely manner
all of its obligations to the Borrowers and their Affiliates under the Financing
Agreement and the other Loan Documents. Notwithstanding the foregoing, the
Agents and the Lenders wish (and the Borrowers agree) to eliminate any
possibility that any past conditions, acts, omissions, events or circumstances
would impair or otherwise adversely affect any of the Agents' and the Lenders'
rights, interests, security and/or remedies under the Financing Agreement and
the other Loan Documents. Accordingly, for and in consideration of the
agreements contained in this

                                      -19-

<PAGE>

Amendment and other good and valuable consideration, each Borrower (for itself
and its Affiliates and the successors, assigns, heirs and representatives of
each of the foregoing) (collectively, the "Releasors") does hereby fully,
finally, unconditionally and irrevocably release and forever discharge each
Agent, each Lender and the L/C Issuer and each of their respective Affiliates,
officers, directors, employees, attorneys, consultants and agents (collectively,
the "Released Parties") from any and all debts, claims, obligations, damages,
costs, attorneys' fees, suits, demands, liabilities, actions, proceedings and
causes of action, in each case, whether known or unknown, contingent or fixed,
direct or indirect, and of whatever nature or description, and whether in law or
in equity, under contract, tort, statute or otherwise, which any Releasor has
heretofore had or now or hereafter can, shall or may have against any Released
Party by reason of any act, omission or thing whatsoever done or omitted to be
done on or prior to the Fourth Amendment Effective Date arising out of,
connected with or related in any way to this Amendment, the Financing Agreement
or any other Loan Document, or any act, event or transaction related or
attendant thereto, or the agreements of any Agent or any Lender contained
therein, or the possession, use, operation or control of any of the assets of
any Borrower, or the making of any Loans or other advances, or the management of
such Loans or advances or the Collateral.

         10. Miscellaneous.

                  (a) Counterparts. This Amendment may be executed in any number
of counterparts and by different parties hereto in separate counterparts, each
of which shall be deemed to be an original, but all of which taken together
shall constitute one and the same agreement. Delivery of an executed counterpart
of this Amendment by telefacsimile or electronic mail shall be equally effective
as delivery of an original executed counterpart of this Amendment.

                  (b) Headings. Section and paragraph headings herein are
included for convenience of reference only and shall not constitute a part of
this Amendment for any other purpose.

                  (c) Governing Law. This Amendment shall be governed by, and
construed in accordance with, the laws of the State of New York.

                  (d) Expenses. The Borrowers will pay on demand all reasonable
fees, costs and expenses of the Agents in connection with the preparation,
execution and delivery of this Amendment and all documents incidental hereto,
including, without limitation, the reasonable fees, disbursements and other
charges of Schulte Roth & Zabel LLP, counsel to the Collateral Agent.

                                      -20-

<PAGE>

         IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be
executed by their respective officers thereunto duly authorized, as of the date
first above written.

                                          BORROWERS:

                                          AAIPHARMA INC.

                                          By: /s/ Ludo Reynders
                                              ----------------------------------
                                              Name:  Ludo Reynders
                                              Title: President & CEO

                                          APPLIED ANALYTICAL INDUSTRIES LEARNING
                                          CENTER, INC.

                                          By: /s/ Gregory S. Bentley
                                              ----------------------------------
                                              Name:  Gregory S. Bentley
                                              Title: Vice President

                                          AAI TECHNOLOGIES, INC.

                                          By: /s/ Gregory S. Bentley
                                              ----------------------------------
                                              Name:  Gregory S. Bentley
                                              Title: Vice President

                                          AAI PROPERTIES, INC.

                                          By: /s/ Gregory S. Bentley
                                              ----------------------------------
                                              Name:  Gregory S. Bentley
                                              Title: Vice President

                                          AAI JAPAN, INC.

                                          By: /s/ Gregory S. Bentley
                                              ----------------------------------
                                              Name:  Gregory S. Bentley
                                              Title: Vice President

                                          KANSAS CITY ANALYTICAL SERVICES, INC.

                                          By: /s/ Gregory S. Bentley
                                              ----------------------------------
                                              Name:  Gregory S. Bentley
                                              Title: Vice President

<PAGE>

                                          AAI DEVELOPMENT SERVICES, INC.

                                          By: /s/ Gregory S. Bentley
                                              ----------------------------------
                                              Name:  Gregory S. Bentley
                                              Title: Vice President

                                          AAIPHARMA LLC

                                          By: /s/ Gregory S. Bentley
                                              ----------------------------------
                                              Name:  Gregory S. Bentley
                                              Title: Vice President

                                          AAI DEVELOPMENT SERVICES, INC.

                                          By: /s/ Gregory S. Bentley
                                              ----------------------------------
                                              Name:  Gregory S. Bentley
                                              Title: Vice President

                                      -2-

<PAGE>

                                          COLLATERAL AGENT:
                                          ----------------

                                          SILVER POINT FINANCE, LLC,
                                          as Collateral Agent

                                          By: /s/ Jeffrey A. Gelfand
                                              ----------------------------------
                                              Name:  Jeffrey A. Gelfand
                                              Title: Chief Financial Officer

                                          ADMINISTRATIVE AGENT:
                                          --------------------

                                          BANK OF AMERICA, N.A.,
                                          as Administrative Agent

                                          By: /s/ Annie Cuenco
                                              ----------------------------------
                                              Name:  Annie Cuenco
                                              Title: Assistant Vice President

                                          LENDERS:

                                          BANK OF AMERICA, N.A.,
                                          as L/C Issuer

                                          By: /s/ Timothy L. Isom
                                              ----------------------------------
                                              Name:  Timothy L. Isom
                                              Title: Principal

                                          BANK OF AMERICA, N.A.,
                                          as a Lender

                                          By: /s/ Timothy L. Isom
                                              ----------------------------------
                                              Name:  Timothy L. Isom
                                              Title: Principal

                                          SEA PINES FUNDING LLC,
                                          as a Lender

                                          By: /s/ Diana M. Himes
                                              ----------------------------------
                                              Name:  Diana M. Himes
                                              Title: Assistant Vice President

                                      -3-

<PAGE>

                                          TRS THEBE LLC,
                                          as a Lender

                                          By: /s/ Alice L. Wagner
                                              ----------------------------------
                                              Name:  Alice L. Wagner
                                              Title: Vice President

                                          SIL LOAN FUNDING LLC,
                                          as a Lender

                                          By: /s/ Jason Trala
                                              ----------------------------------
                                              Name:  Jason Trala
                                              Title: Attorney-in-Fact

                                          SILVER POINT ONSHORE CDO, LLC,
                                          as a Lender

                                          By: /s/ Jeffrey A. Gelfand
                                              ----------------------------------
                                              Name:  Jeffrey A. Gelfand
                                              Title: Chief Financial Officer

                                          GOLDMAN SACHS CREDIT PARTNERS L.P.,
                                          as a Lender

                                          By: /s/ Buckley Ratchford
                                              ----------------------------------
                                              Name:  Buckley Ratchford
                                              Title: Managing Director

                                      -4-

<PAGE>

                                          ADDITIONAL LENDERS:

                                          SPCP GROUP LLC,
                                          as a Lender

                                          By: /s/ Jeffrey A. Gelfand
                                              ----------------------------------
                                              Name:  Jeffrey A. Gelfand
                                              Title: Chief Financial Officer

                                          SPCP GROUP III, L.L.C.,
                                          as a Lender

                                          By: /s/ Jeffrey A. Gelfand
                                              ----------------------------------
                                              Name:  Jeffrey A. Gelfand
                                              Title: Chief Financial Officer

                                      -5-Ex-4.10

 

EXHIBIT 4.10

                   

and

                   ,

Trustee

Indenture

Dated as of                    , 20                   

                                                         

SENIOR DEBT SECURITIES

                                                         

 

 

TABLE OF CONTENTS

	 	 	 	 	 
	TABLE OF CONTENTS
	 	 	i	 
	ARTICLE 1. DEFINITIONS AND OTHER PROVISIONS OF GENERAL APPLICATION
	 	 	1	 
	SECTION 101. DEFINITIONS
	 	 	1	 
	SECTION 102. COMPLIANCE CERTIFICATES AND OPINIONS
	 	 	8	 
	SECTION 103. FORM OF DOCUMENTS DELIVERED TO TRUSTEE
	 	 	9	 
	SECTION 104. ACTS OF HOLDERS; RECORD DATES
	 	 	9	 
	SECTION 105. NOTICES, ETC., TO TRUSTEE AND COMPANY
	 	 	11	 
	SECTION 106. NOTICES TO HOLDERS; WAIVER
	 	 	12	 
	SECTION 107. CONFLICT WITH TRUST INDENTURE ACT
	 	 	12	 
	SECTION 108. EFFECT OF HEADINGS AND TABLE OF CONTENTS
	 	 	12	 
	SECTION 109. SUCCESSORS AND ASSIGNS
	 	 	12	 
	SECTION 110. SEPARABILITY CLAUSE
	 	 	13	 
	SECTION 111. BENEFITS OF INDENTURE
	 	 	13	 
	SECTION 112. GOVERNING LAW
	 	 	13	 
	SECTION 113. LEGAL HOLIDAYS
	 	 	13	 
	ARTICLE 2. SECURITY FORMS
	 	 	13	 
	SECTION 201. FORMS GENERALLY
	 	 	13	 
	SECTION 202. FORM OF FACE OF SECURITY
	 	 	14	 
	SECTION 203. FORM OF REVERSE OF SECURITY
	 	 	16	 
	SECTION 204. FORM OF LEGEND FOR GLOBAL SECURITIES
	 	 	19	 
	SECTION 205. FORM OF TRUSTEE’S CERTIFICATE OF AUTHENTICATION
	 	 	20	 
	ARTICLE 3. THE SECURITIES
	 	 	20	 
	SECTION 301. AMOUNT UNLIMITED; ISSUABLE IN SERIES
	 	 	20	 
	SECTION 302. DENOMINATIONS
	 	 	23	 
	SECTION 303. EXECUTION, AUTHENTICATION, DELIVERY AND DATING
	 	 	23	 
	SECTION 304. TEMPORARY SECURITIES
	 	 	24	 
	SECTION 305. REGISTRATION, REGISTRATION OF TRANSFER AND EXCHANGE
	 	 	25	 
	SECTION 306. MUTILATED, DESTROYED, LOST OR STOLEN SECURITIES
	 	 	27	 

i

 

	 	 	 	 	 
	SECTION 307. PAYMENT OF INTEREST; INTEREST RIGHTS PRESERVED
	 	 	28	 
	SECTION 308. PERSONS DEEMED OWNERS
	 	 	29	 
	SECTION 309. CANCELLATION
	 	 	29	 
	SECTION 310. COMPUTATION OF INTEREST
	 	 	29	 
	ARTICLE 4. SATISFACTION AND DISCHARGE
	 	 	29	 
	SECTION 401. SATISFACTION AND DISCHARGE OF INDENTURE
	 	 	30	 
	SECTION 402. APPLICATION OF TRUST MONEY
	 	 	31	 
	ARTICLE 5. REMEDIES
	 	 	31	 
	SECTION 501. EVENTS OF DEFAULT
	 	 	31	 
	SECTION 502. ACCELERATION OF MATURITY; RESCISSION AND ANNULMENT
	 	 	33	 
	SECTION 503. COLLECTION OF INDEBTEDNESS AND SUITS FOR ENFORCEMENT; TRUSTEE
	 	 	33	 
	SECTION 504. TRUSTEE MAY FILE PROOFS OF CLAIM
	 	 	34	 
	SECTION 505. TRUSTEE MAY ENFORCE CLAIMS WITHOUT POSSESSION OF SECURITIES
	 	 	34	 
	SECTION 506. APPLICATION OF MONEY COLLECTED
	 	 	35	 
	SECTION 507. LIMITATION ON SUITS
	 	 	35	 
	SECTION 508. UNCONDITIONAL RIGHT OF HOLDERS TO RECEIVE PRINCIPAL, PREMIUM AND INTEREST AND TO CONVERT
	 	 	36	 
	SECTION 509. RESTORATION OF RIGHTS AND REMEDIES
	 	 	36	 
	SECTION 510. RIGHTS AND REMEDIES CUMULATIVE
	 	 	36	 
	SECTION 511. DELAY OR OMISSION NOT WAIVER
	 	 	36	 
	SECTION 512. CONTROL BY HOLDERS
	 	 	37	 
	SECTION 513. WAIVER OF PAST DEFAULTS
	 	 	37	 
	SECTION 514. UNDERTAKING FOR COSTS
	 	 	37	 
	ARTICLE 6. THE TRUSTEE
	 	 	37	 
	SECTION 601. CERTAIN DUTIES AND RESPONSIBILITIES
	 	 	38	 
	SECTION 602. NOTICE OF DEFAULTS
	 	 	39	 
	SECTION 603. CERTAIN RIGHTS OF TRUSTEE
	 	 	39	 
	SECTION 604. NOT RESPONSIBLE FOR RECITALS OR ISSUANCE OF SECURITIES
	 	 	40	 
	SECTION 605. MAY HOLD SECURITIES
	 	 	40	 

ii

 

	 	 	 	 	 
	SECTION 606. MONEY HELD IN TRUST
	 	 	40	 
	SECTION 607. COMPENSATION AND REIMBURSEMENT
	 	 	41	 
	SECTION 608. CONFLICTING INTERESTS
	 	 	41	 
	SECTION 609. CORPORATE TRUSTEE REQUIRED; ELIGIBILITY
	 	 	41	 
	SECTION 610. RESIGNATION AND REMOVAL; APPOINTMENT OF SUCCESSOR
	 	 	41	 
	SECTION 611. ACCEPTANCE OF APPOINTMENT BY SUCCESSOR
	 	 	43	 
	SECTION 612. MERGER, CONVERSION, CONSOLIDATION OR SUCCESSION TO BUSINESS
	 	 	44	 
	SECTION 613. PREFERENTIAL COLLECTION OF CLAIMS AGAINST COMPANY
	 	 	44	 
	SECTION 614. APPOINTMENT OF AUTHENTICATING AGENT
	 	 	44	 
	ARTICLE 7. HOLDERS’ LISTS AND REPORTS BY TRUSTEE AND COMPANY
	 	 	46	 
	SECTION 701. COMPANY TO FURNISH TRUSTEE NAMES AND ADDRESSES OF HOLDERS
	 	 	46	 
	SECTION 702. PRESERVATION OF INFORMATION; COMMUNICATIONS TO HOLDERS
	 	 	46	 
	SECTION 703. REPORTS BY TRUSTEE
	 	 	46	 
	ARTICLE 8. CONSOLIDATION, MERGER OR SALE OF ASSETS
	 	 	47	 
	SECTION 801. CONSOLIDATION, MERGER OR SALE OF ASSETS BY THE COMPANY
	 	 	47	 
	SECTION 802. SUCCESSOR SUBSTITUTED
	 	 	47	 
	ARTICLE 9. SUPPLEMENTAL INDENTURES
	 	 	47	 
	SECTION 901. SUPPLEMENTAL INDENTURES WITHOUT CONSENT OF HOLDERS
	 	 	48	 
	SECTION 902. SUPPLEMENTAL INDENTURES WITH CONSENT OF HOLDERS
	 	 	49	 
	SECTION 903. EXECUTION OF SUPPLEMENTAL INDENTURES
	 	 	50	 
	SECTION 904. EFFECT OF SUPPLEMENTAL INDENTURES
	 	 	50	 
	SECTION 905. CONFORMITY WITH THE TRUST INDENTURE ACT
	 	 	50	 
	SECTION 906. REFERENCE IN SECURITIES TO SUPPLEMENTAL INDENTURE
	 	 	50	 
	ARTICLE 10. COVENANTS
	 	 	51	 
	SECTION 1001. PAYMENT OF PRINCIPAL, PREMIUM AND INTEREST
	 	 	51	 
	SECTION 1002. MAINTENANCE OF OFFICE OR AGENCY
	 	 	51	 

iii

 

	 	 	 	 	 
	SECTION 1003. MONEY FOR SECURITIES PAYMENTS TO BE HELD IN TRUST
	 	 	51	 
	SECTION 1004. COMMISSION REPORTS
	 	 	52	 
	SECTION 1005. COMPLIANCE CERTIFICATE
	 	 	52	 
	SECTION 1006. STAY, EXTENSION AND USURY LAWS
	 	 	53	 
	SECTION 1007. CORPORATE EXISTENCE
	 	 	53	 
	SECTION 1008. WAIVER OF CERTAIN COVENANTS
	 	 	53	 
	SECTION 1009. TAXES
	 	 	54	 
	SECTION 1010. LIMITATION ON LIENS
	 	 	54	 
	SECTION 1011. LIMITATION ON SALE AND LEASEBACK TRANSACTIONS
	 	 	55	 
	ARTICLE 11. REDEMPTION OF SECURITIES
	 	 	56	 
	Section 1101. APPLICABILITY OF ARTICLE
	 	 	56	 
	SECTION 1102. ELECTION TO REDEEM; NOTICE TO TRUSTEE
	 	 	56	 
	SECTION 1103. SELECTION OF TRUSTEE OF SECURITIES TO BE REDEEMED
	 	 	57	 
	SECTION 1104. NOTICE OF REDEMPTION
	 	 	57	 
	SECTION 1105. DEPOSIT OF REDEMPTION PRICE
	 	 	58	 
	SECTION 1106. SECURITIES PAYABLE ON REDEMPTION DATE
	 	 	58	 
	SECTION 1107. SECURITIES REDEEMED IN PART
	 	 	58	 
	ARTICLE 12. SINKING FUNDS
	 	 	59	 
	SECTION 1201. APPLICABILITY OF ARTICLE
	 	 	59	 
	SECTION 1202. SATISFACTION OF SINKING FUND PAYMENTS WITH SECURITIES
	 	 	59	 
	SECTION 1203. REDEMPTION OF SECURITIES FOR SINKING FUND
	 	 	59	 
	ARTICLE 13. DEFEASANCE AND COVENANT DEFEASANCE
	 	 	60	 
	SECTION 1301. APPLICABILITY OF ARTICLE; COMPANY’S OPTION TO ELECT DEFEASANCE OR COVENANT DEFEASANCE
	 	 	60	 
	SECTION 1302. DEFEASANCE AND DISCHARGE
	 	 	60	 
	SECTION 1303. COVENANT DEFEASANCE
	 	 	60	 
	SECTION 1304. CONDITIONS TO DEFEASANCE OR COVENANT DEFEASANCE
	 	 	61	 

iv

 

	 	 	 	 	 
	SECTION 1305. DEPOSITED MONEY AND U.S. GOVERNMENT OBLIGATIONS TO BE HELD IN TRUST; MISCELLANEOUS PROVISIONS
	 	 	63	 
	SECTION 1306. REINSTATEMENT
	 	 	64	 
	SECTION 1307. QUALIFYING TRUSTEE
	 	 	64	 
	[if applicable insert — ARTICLE 14. GUARANTEES
	 	 	64	 
	SECTION 1401. APPLICABILITY OF ARTICLE
	 	 	64	 
	SECTION 1402. GUARANTEE
	 	 	64	 
	SECTION 1403. OBLIGATIONS OF THE GUARANTOR UNCONDITIONAL
	 	 	66	 
	SECTION 1404. ARTICLE 14 NOT TO PREVENT EVENTS OF DEFAULT
	 	 	66	 
	SECTION 1405. EXECUTION AND DELIVERY OF GUARANTEE
	 	 	66	 

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

v

 

     INDENTURE dated as of                    , 20       between                    , a corporation
duly organized and existing under the laws of the State of Delaware (herein
sometimes called the “Company”), and                    , a corporation duly
organized and existing under the laws of the State of                    , as Trustee
(herein sometimes 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 debentures,
notes or other evidences of indebtedness (herein called the “Securities”), to
be issued in one or more series as this Indenture provides.

     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 promises and the purchase of the
Securities by the Holders thereof, it is mutually agreed, for the equal and
proportionate benefit of all Holders of the Securities or of series thereof, as
follows:

ARTICLE 1.

DEFINITIONS AND OTHER PROVISIONS

OF GENERAL APPLICATION

     SECTION 101. 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, have the meanings assigned to
them therein;

     (3) all accounting terms not otherwise defined herein have the meanings
assigned to them in accordance with generally accepted accounting principles,
and, except as otherwise herein expressly provided, the terms “generally
accepted accounting principles” or “GAAP” with respect to any computation
required or permitted hereunder shall mean such accounting principles as are
generally accepted at the date hereof;

     (4) unless the context otherwise requires, any reference to an Article or
a Section refers to an Article or a Section, as the case may be, of this
Indenture; 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 of Holder” has the meaning specified in Section 104.

     “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” in respect of a Sale and Leaseback Transaction, means,
as of any particular time, the present value (discounted at the rate of
interest implicit in the lease involved in such Sale and Leaseback Transaction,
as determined by the Company in good faith) of the obligation of the lessee
thereunder for rental payments (excluding, however, any amounts required to be
paid by the lessee, whether or not designated as rent or additional rent, on
account of maintenance and repairs, insurance, taxes, assessments, water rates
or similar charges or any amounts required to be paid by the lessee thereunder
contingent upon the monetary inflation or the amount of sales, maintenance and
repairs, insurance, taxes, assessments, water rates or similar charges) during
the remaining term of the lease (including any period for which the lease has
been extended or may, at the option of the lessor, be extended).

     “Authenticating Agent” means any Person authorized by the Trustee pursuant
to Section 614 to act on behalf of the Trustee to authenticate Securities of
one or more series.

     “Board of Directors” means either the board of directors of the Company or
any duly authorized committee of that board.

     “Board Resolution” means (i) 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, or (ii) a certificate signed by the authorized officer or
officers of the Company to whom the Board of Directors of the Company has
delegated its authority, and in each case, delivered to the Trustee.

     “Business Day,” when used with respect to any Place of Payment, 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 executive order to close.

     “Commission” means the Securities and Exchange Commission, 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.

2

 

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

     “Company Request” or “Company Order” means a written request or order
signed in the name of the Company by its Chairman of the Board, the Chief
Executive Officer, the President, the Chief Financial Officer or any Vice
President, and by the Treasurer, an Assistant Treasurer, the Secretary or an
Assistant Secretary, and delivered to the Trustee.

     “Consolidated Net Tangible Assets,” which may be determined as of a date
not more than 60 days prior to the happening of an event for which such
determination is being made, means the total of all the assets appearing on the
consolidated balance sheet of the Company and its Subsidiaries, less the
following:

	 	(i)	 	current liabilities;
	 
	 	(ii)	 	intangible assets, including without limitation, such items
as goodwill, trademarks, trade names, patents and unamortized debt
discount and expense carried as an asset on said balance sheet; and
	 
	 	(iii)	 	appropriate adjustments on account of minority interests of
other Persons holding stock in any Subsidiary of the Company.

     “Corporate Trust Office” means the office of the Trustee or agent of the
Trustee, in either case, in the City of New York, at which at any particular
time the corporate trust business of the Trustee or such agent shall be
principally administered.

     “Corporation” means a corporation, association, company, joint-stock
company or business trust.

     “Covenant Defeasance” has the meaning specified in Section 1303.

     “Debt” means indebtedness for money borrowed.

     “Defaulted Interest” has the meaning specified in Section 307.

     “Defeasance” has the meaning specified in Section 1302.

     “Depositary” means, with respect to Securities of any series issuable in
whole or in part in the form of one or more Global Securities, a clearing
agency registered under the Exchange Act that is designated to act as
Depositary for such Securities as contemplated by Section 301.

     “Domestic Subsidiary” means a Subsidiary formed under the laws of, or
conducting its principal operations within, the Unites States or any State or
territory thereof.

     “Event of Default” has the meaning specified in Section 501.

3

 

     “Exchange Act” means the Securities Exchange Act of 1934 and any statute
successor thereto, in each case as amended from time to time.

     “Expiration Date” means a date, designated in accordance with Section 104,
by which Holders must take an action contemplated by Section 104 for such
action to be effective.

     “Foreign Government Obligation” has the meaning specified in Section 1304.

     “Funded Debt” means all indebtedness for money borrowed having a maturity
of more than twelve months from the date of the most recent consolidated
balance sheet of the Company and its Subsidiaries or renewable and extendable
beyond twelve months at the option of the borrower and all obligations in
respect of lease rentals that under GAAP would be shown on the consolidated
balance sheet of the Company as a liability item other than a current
liability; provided, however, that Funded Debt shall not include any of the
foregoing to the extent that such indebtedness or obligations are not required
by GAAP to be shown on the balance sheet of the Company.

     “generally accepted accounting principles” or “GAAP” has the meaning
specified in Section 101(3).

     “Global Security” means a Security that evidences all or part of the
Securities of any series and bears the legend set forth in Section 204 (or such
legend as may be specified as contemplated by Section 301 for such Securities).

     “Guarantee” has the meaning specified in Section 1402.

     “Guarantor” means                    , a                    .

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

     “Indebtedness” means, with respect to a Person, (i) all liabilities
representing borrowed money or purchase money obligations as shown on the
liability side of a balance sheet, (ii) all indebtedness secured by any Lien
existing on property owned subject to such Lien, whether or not such secured
indebtedness has been assumed and (iii) contingent obligations in respect of,
or to purchase or otherwise acquire, any such indebtedness of others described
in the foregoing clauses (i) or (ii) above, including guarantees and
endorsements (other than for purposes of collection in the ordinary course of
business of any such indebtedness).

     “Indenture” means this instrument as originally executed and as it may
from time to time be supplemented or amended by one or more indentures
supplemental hereto entered into pursuant to the applicable provisions hereof,
including, for all purposes of this instrument and any such supplemental
indenture, the provisions of the Trust Indenture Act that are deemed to be a
part of and govern this instrument and any such supplemental indenture,
respectively. The term Indenture shall also include the terms of particular
series of Securities established as contemplated by Section 301.

4

 

     “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.

     “Investment Company Act” means the Investment Company Act of 1940 and any
statute successor thereto, in each case as amended from time to time.

     “Lien” means any mortgage, pledge, lien, encumbrance, charge or security
interest of any kind, excluding certain liens relating to taxes, easements and
similar liens arising in the ordinary course of business.

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

     “Notice of Default” means a written notice of the kind specified in
Section 501(4).

     “Officers’ Certificate” means a certificate signed by the Chairman of the
Board, the Chief Executive Officer, the President, the Chief Financial Officer
or any Vice President, and by the Treasurer, an Assistant Treasurer, the
Secretary or an Assistant Secretary, of the Company, and delivered to the
Trustee.

     “Opinion of Counsel” means a written opinion of counsel, who may be
counsel for the Company, and who shall be 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 502.

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

     (1) Securities theretofore cancelled by the Trustee or delivered to the
Trustee for cancellation;

     (2) Securities for whose payment or redemption money in the necessary
amount has been theretofore deposited with the Trustee or any Paying Agent
(other than the Company) in trust or set aside and segregated in trust by the
Company (if the Company shall act as its own Paying Agent) for the Holders of
such Securities; provided 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;

5

 

     (3) Securities as to which Defeasance has been effected pursuant to
Section 1302; and

     (4) Securities that have been paid pursuant to Section 306 or in exchange
for or in lieu of which other Securities have been authenticated and delivered
pursuant to this Indenture, other than any such Securities in respect of which
there shall have been presented to the Trustee proof satisfactory to it that
such Securities are held by a bona fide purchaser in whose hands such
Securities are valid obligations of the Company; provided, however, that in
determining whether the Holders of the requisite principal amount of the
Outstanding Securities have given, made or taken any request, demand,
authorization, direction, notice, consent, waiver or other action hereunder as
of any date, (A) the principal amount of an Original Issue Discount Security
which shall be deemed to be Outstanding shall be the amount of the principal
thereof which would be due and payable as of such date upon acceleration of the
Maturity thereof to such date pursuant to Section 502, (B) if, as of such date,
the principal amount payable at the Stated Maturity of a Security is not
determinable, the principal amount of such Security which shall be deemed to be
Outstanding shall be the amount as specified or determined as contemplated by
Section 301, (C) the principal amount of a Security denominated in one or more
foreign currencies or currency units which shall be deemed to be Outstanding
shall be the U.S. dollar equivalent, determined as of such date in the manner
provided as contemplated by Section 301, of the principal amount of such
Security (or, in the case of a Security described in Clause (A) or (B) above,
of the amount determined as provided in such Clause), and (D) 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, waiver or other action, 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 or any premium or interest on any Securities on behalf of the
Company.

     “Person” means an individual, corporation, partnership, joint venture,
limited liability company, association, 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 any premium and
interest on the Securities of that series are payable as specified as
contemplated by Section 301.

     “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 306 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.

6

 

     The
term “Principal Property” means any branch,
distribution center or other operating facility owned by us or WESCO
Distribution, as the case may be, or any Domestic Subsidiary, the book value of
the real property, plant and equipment of which (as shown, without deduction of
any depreciation reserves, on the books of the owner or owners) is not less than
two percent of Consolidated Net Tangible Assets except (A) any such
facility which our Board of Directors or the Board of Directors of WESCO
Distribution, as the case may be, determines is not of material importance to
the total business conducted, or assets owned, by us or WESCO Distribution, as
the case may be and our Domestic Subsidiaries or Domestic Subsidiaries of WESCO
Distribution, as the case may be, as an entirety, or (B) any portion of
any such facility which our Board of Directors determines or the Board of
Directors of WESCO Distribution, as the case may be, not to be of material
importance to the use or operation thereof.

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

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

     “Regular Record Date” for the interest payable on any Interest Payment
Date on the Securities of any series means the date specified for that purpose
as contemplated by Section 301.

     “Responsible Officer,” when used with respect to the Trustee, means any
officer within the Corporate Trust Office of the Trustee including any vice
president, the secretary, any assistant secretary, the treasurer, any assistant
treasurer, the cashier, any assistant cashier, any trust officer, any senior
trust officer or assistant trust officer or any other officer of the Trustee
customarily performing functions similar to those performed by any of the above
designated officers and also means, with respect to a particular corporate
trust matter, any other officer to whom such matter is referred because of his
knowledge of and familiarity with the particular subject.

     “Sale and Leaseback Transaction” means any arrangement with any Person
providing for the leasing to the Company or any Domestic Subsidiary of the
Company of any Principal Property or portion thereof (except for temporary
leases for a term, including any renewal thereof, of not more than 36 months
and except for leases between the Company and a Subsidiary or between
Subsidiaries), which Principal Property (or portion thereof) has been or is to
be sold or transferred by the Company or such Domestic Subsidiary to such
Person.

     “Secured Debt” means Indebtedness for borrowed money and any Funded Debt
that is secured by a security interest in (a) any Principal Property or (b) any
shares of capital stock or Indebtedness of any Subsidiary.

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

7

 

     “Securities Act” means the Securities Act of 1933 and any statute
successor thereto, in each case as amended from time to time.

     “Security Registrar” shall mean the Person appointed to register
Securities and transfers of Securities in the Security Register, as
contemplated by Section 305.

     “Security Register” has the meaning specified in Section 305.

     “Significant Subsidiary” means any direct or indirect Subsidiary of the
Company that would be a “significant subsidiary” as defined in Article 1, Rule
1-02 of Regulation S-X, promulgated pursuant to the Securities Act of 1933, as
amended, as such regulation is in effect on the date hereof.

     “Special Record Date” for the payment of any Defaulted Interest means a
date fixed by the Trustee pursuant to Section 307.

     “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,
association or other business entity of which more than 50% of the outstanding
voting stock is owned, directly or indirectly, by such Person and one or more
Subsidiaries of such Person (or combination thereof). Unless otherwise
specified, “Subsidiary” means a Subsidiary of the Company.

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

     “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.

     “U.S. Government Obligation” has the meaning specified in Section 1304.

     “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 102. 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 such certificates
and opinions as may be required under the Trust Indenture Act. Each such
certificate or opinion shall be given in the

8

 

form of an Officers’ Certificate, if to be given by an officer of the
Company, or an Opinion of Counsel, if to be given by counsel, and shall comply
with the requirements of the Trust Indenture Act and any other requirements set
forth in this Indenture.

     Every certificate or opinion with respect to compliance with a condition

or covenant provided for in this Indenture (other than the Officers’
Certificate provided for in Section 1005 hereof) shall include:

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

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

     (3) a statement that, in the opinion of 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

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

     SECTION 103. FORM OF DOCUMENTS DELIVERED TO TRUSTEE. In any case where
several matters are required to be certified by, or covered by an opinion of,
any specified Person, it is not necessary that all such matters be certified
by, or covered by the opinion of, only one such Person, or that they be so
certified or covered by only one document, but one such Person may certify or
give an opinion with respect to some matters and one or more other such Persons
as to other matters, and any such Person may certify or give an opinion as to
such matters in one or several documents.

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

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

     SECTION 104. ACTS OF HOLDERS; RECORD DATES. Any request, demand,
authorization, direction, notice, consent, waiver or other action provided or
permitted by this Indenture to be given, made or taken by Holders may be
embodied in and evidenced by one or

9

 

more instruments of substantially similar tenor signed by such Holders in
person or by agent duly appointed in writing; and, except as herein otherwise
expressly provided, such action shall become effective when such instrument or
instruments are delivered to the Trustee and, where it is hereby expressly
required, to the Company. Such instrument or instruments (and the action
embodied therein and evidenced thereby) are herein sometimes referred to as the
Act of the Holders signing such instrument or instruments. Proof of execution
of any such instrument or of a writing appointing any such agent shall be
sufficient for any purpose of this Indenture and (subject to Section 601)
conclusive in favor of the Trustee and the Company, if made in the manner
provided in this Section.

     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.

     The ownership of Securities shall be proved by the Security Register.

     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.

     The Company may set any day as a record date for the purpose of
determining the Holders of Outstanding Securities of any series entitled to
give, make or take any request, demand, authorization, direction, notice,
consent, waiver or other action provided or permitted by this Indenture to be
given, made or taken by Holders of Securities of such series, provided that the
Company may not set a record date for, and the provisions of this paragraph
shall not apply with respect to, the giving or making of any notice,
declaration, request or direction referred to in the next paragraph. If any
record date is set pursuant to this paragraph, the Holders of Outstanding
Securities of the relevant series on such record date, and no other Holders,
shall be entitled to take the relevant action, whether or not such Holders
remain Holders after such record date; provided that no such action shall be
effective hereunder unless taken on or prior to the applicable Expiration Date
by Holders of the requisite principal amount of Outstanding Securities of such
series on such record date. Nothing in this paragraph shall be construed to
prevent the Company from setting a new record date for any action for which a
record date has previously been set pursuant to this paragraph (whereupon the
record date previously set shall automatically and with no action by any Person
be cancelled 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 Company, at its own expense, shall cause notice of such record
date, the proposed action by Holders and the

10

 

applicable Expiration Date to be given to the Trustee in writing and to each
Holder of Securities of the relevant series in the manner set forth in Section
106.

     The Trustee may set any day as a record date for the purpose of
determining the Holders of Outstanding 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 502, (iii) any request to institute
proceedings referred to in Section 507(2) or (iv) any direction referred to in
Section 512, in each case with respect to Securities of such series. If any
record date is set pursuant to this paragraph, the Holders of Outstanding
Securities of such series on such record date, and no other Holders, shall be
entitled to join in such notice, declaration, request or direction, whether or
not such Holders remain Holders after such record date; provided that no such
action shall be effective hereunder unless taken on or prior to the applicable
Expiration Date by Holders of the requisite principal amount of Outstanding
Securities of such series on such 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 previously been set pursuant to this
paragraph (whereupon the record date previously set shall automatically and
with no action by any Person be cancelled 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, the proposed action by Holders and the
applicable Expiration Date 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
106.

     With respect to any record date set pursuant to this Section, the party
hereto which sets such record dates may designate any date as the Expiration
Date and from time to time may change the Expiration Date to any earlier or
later day; provided that no such change shall be effective unless notice of the
proposed new Expiration Date is given to the other party hereto in writing, and
to each Holder of Securities of the relevant series in the manner set forth in
Section 106, on or prior to the existing Expiration Date. If an Expiration Date
is not designated with respect to any record date set pursuant to this Section,
the party hereto which sets such record date shall be deemed to have initially
designated the 180th day after such record date as the Expiration Date with
respect thereto, subject to its right to change the Expiration Date as provided
in this paragraph. Notwithstanding the foregoing, no Expiration Date shall be
later than the 180th day after the applicable record date.

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

     SECTION 105. 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,

11

 

     (1) 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                    , or at any other address previously
furnished in writing to the Company and the Holders by the Trustee, or

     (2) the Company by the Trustee or by any Holder shall be sufficient for
every purpose hereunder (unless otherwise herein expressly provided) if in
writing and mailed, first-class postage prepaid, to the Company addressed to it
at the address of its principal office specified in the first paragraph of this
instrument, Attn. Secretary, or at any other address previously furnished in
writing to the Trustee by the Company.

     SECTION 106. NOTICES TO HOLDERS; WAIVER. Where this Indenture provides
for notice to Holders of any event, such notice shall be sufficiently given
(unless otherwise herein expressly provided) if in writing and mailed,
first-class postage prepaid, to each Holder affected by such event, at his
address as it appears in the Security Register, not later than the latest date
(if any), and not earlier than the earliest date (if any), 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. Where this Indenture provides for notice in any
manner, such notice may be waived in writing by the Person entitled to receive
such notice, either before or after the event, and such waiver shall be the
equivalent of such notice. Waivers of notice by Holders shall be filed with the
Trustee, but such filing shall not be a condition precedent to the validity of
any action taken in reliance upon such waiver.

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

     SECTION 107. CONFLICT WITH TRUST INDENTURE ACT. If any provision hereof
limits, qualifies or conflicts with a provision of the Trust Indenture Act that
is required under such Act to be a part of and govern this Indenture, the
latter provision shall control. If any provision of this Indenture modifies or
excludes any provision of the Trust Indenture Act that may be so modified or
excluded, the latter provision shall be deemed to apply to this Indenture as so
modified or to be excluded, as the case may be.

     SECTION 108. EFFECT OF HEADINGS AND TABLE OF CONTENTS. The Article and
Section headings herein and the Table of Contents are for convenience only and
shall not affect the construction hereof.

     SECTION 109. SUCCESSORS AND ASSIGNS. All covenants and agreements in
this Indenture by the Company shall bind its successors and assigns, whether so
expressed or not.

12

 

     SECTION 110. 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 111. 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 112. GOVERNING LAW. This Indenture and the Securities shall be
governed by and construed in accordance with the law of the State of New York,
without regard to principles of conflicts of laws.

     SECTION 113. LEGAL HOLIDAYS. In any case where any Interest Payment
Date, Redemption Date or Stated Maturity of any Security shall not be a
Business Day at any Place of Payment, then (notwithstanding any other provision
of this Indenture or of the Securities (other than a provision of any Security
that 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 at such Place of Payment with the same force and effect
as if made on the Interest Payment Date or Redemption Date, or at the Stated
Maturity, provided, that no interest shall accrue with respect to such payment
for the period from and after such Interest Payment Date, Redemption Date or
Stated Maturity, as the case may be.

ARTICLE 2.

SECURITY FORMS

     SECTION 201. 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 thereof. If the form of Securities of any
series is established by action taken pursuant to a Board Resolution, a copy of
an appropriate record of such action shall be certified by 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 303 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.

13

 

     SECTION 202. FORM OF FACE OF SECURITY.

[Insert any legend required by the Internal Revenue Code and the regulations thereunder.]

 

	 	 	 
	No.                    

	 	$                   

CUSIP                    

                        , a corporation duly organized and existing under the laws of
Delaware (herein called the “Company,” which term includes any successor Person
under the Indenture hereinafter referred to), for value received, hereby
promises to pay to                    , or registered assigns, the principal
sum of                                       [Dollars] [if other than Dollars, substitute
other currency or currency units] 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 interest at a fixed rate, 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 rate determined with reference to one or more formula, refer
to description of index below], until the principal hereof is paid or made
available for payment.

     [If applicable, insert —, provided that any principal and premium, and
any such installment of interest, which is overdue shall bear interest at the
rate of                    % per annum (to the extent that the payment of such interest shall
be legally enforceable), from the dates such amounts are due until they are
paid or made available for payment, and such interest shall be payable on
demand.] Interest shall be computed on the basis of a 360-day year of twelve
30-day
months. 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].

14

 

     [If the Securities are securities with respect to which the principal of
or any premium or interest may be determined with reference to one or more
indices or formulas, insert the text of such indices or formulas.]

     [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 and any overdue premium shall
bear interest at the rate of                    % per annum (to the extent that the payment
of such interest shall be legally enforceable), from the dates such amounts are
due until they are paid or made available for payment. Interest on any overdue
principal or premium shall be payable on demand. [Any such interest on overdue
principal or premium which is not paid on demand shall bear interest at the
rate of                    % per annum (to the extent that the payment of such
interest on interest shall be legally enforceable), from the date of such
demand until the amount so demanded is paid or made available for payment.
Interest on any overdue interest shall 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 such
coin or currency [of the United States of America] [if the Security is
denominated in a currency other than U.S. dollars, specify other currency or
currency unit in which payment of the principal of any premium or interest may
be made] as at the time of payment is legal tender for payment of public and
private debts [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 or by wire transfer to an account maintained by the Person entitled
thereto as specified in the Security Register.]

     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.

     Dated:                                       

     By
                 
                  
 

     Attest:

15

 

     SECTION 203. 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
                   ,                     (herein called the Indenture, which term shall have the
meaning assigned to it in such instrument), between the Company and
                   , as Trustee (herein called the Trustee, which term includes
any successor trustee under the Indenture), and reference is hereby made to the
Indenture 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 [if applicable, insert — limited in aggregate principal amount
to $                   ]. [The Securities are [unsecured general obligations of
the Company.]]

     [If applicable, insert — The securities of this series are subject to
redemption upon not less than 30 days’ notice by mail, [If applicable, insert
—

     (1) on                     in any year commencing with the year                    
and ending with the year                     through operation of the sinking fund
for this series at a Redemption Price equal to 100% of the principal amount,
and

     (2)]
at any time [if applicable, insert — 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 [if applicable, insert — on or before                    ,                    % and
if redeemed] during the 12-month period beginning                     of the years
indicated,

	 	 	 	 	 	 	 	 	 
	Year
	 	Redemption Price
	 	 	Year
	 	 	Redemption Price

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

     [If applicable, insert — The Securities of this series are subject to
redemption upon not less than 30 days’ notice by mail, (1) on                     in
any year commencing with the year                     and ending with the year                    
through operation of the sinking fund for this series at the Redemption Prices
for redemption through operation of the sinking fund (expressed as percentages
of the principal amount) set forth in the table below, and (2) at any time [if
applicable, insert — 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

16

 

sinking fund (expressed as percentages of the principal amount) set forth in
the table below: If redeemed during the 12-month period beginning
                                       of the years indicated,

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

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

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

     [If applicable, insert — The sinking fund for this series provides for
the redemption on                                        in each year beginning with the year
                    and ending with the year                     of [if applicable, insert – 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 [if applicable, insert — mandatory] sinking fund payments may be
credited against subsequent [if applicable, insert — mandatory] [sinking fund
payments otherwise required to be made [if applicable, insert —, in the
inverse order in which they become due].]

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

     [If the Security is not subject to redemption of any kind, insert – This
Security is not redeemable prior to the Stated Maturity.]

17

 

     [If applicable, insert — The Indenture contains provisions for defeasance
at any time of [the entire indebtedness of this Security] [or] [certain
restrictive covenants and Events of Default with respect to this Security] [,
in each case] upon compliance with certain conditions set forth in the
Indenture.]

     [If the Security is convertible into securities of the Company, specify
the conversion features.]

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

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

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

     As provided in and subject to the provisions of the Indenture, the Holder
of this Security shall not have the right to institute any proceeding with
respect to the Indenture or for the appointment of a receiver or trustee or for
any other remedy thereunder, unless such Holder shall have previously given the
Trustee written notice of a continuing Event of Default with respect to the
Securities of this series, the Holders of not less than 25% in principal amount
of the Securities of this series at the time Outstanding shall have made
written request to the Trustee to institute proceedings in respect of such
Event of Default as Trustee and offered the Trustee reasonable indemnity, and
the Trustee shall not have received from the Holders of a majority in principal
amount of Securities of this series at the time Outstanding a direction
inconsistent with

18

 

such request, and shall have failed to institute any such proceeding, for 60
days after receipt of such notice, request and offer of indemnity. The
foregoing shall not apply to any suit instituted by the Holder of this Security
for the enforcement of any payment of principal hereof or any premium or
interest hereon on or after the respective due dates expressed herein.

     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 any premium 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 any
premium 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 and of like tenor, of authorized denominations and for the same
aggregate principal amount, will be issued to the designated transferee or
transferees.

     The Securities of this series are issuable only in registered form without
coupons in denominations of $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 and of like tenor of a different authorized
denomination, as requested by the Holder surrendering the same.

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

     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.

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

     SECTION 204. FORM OF LEGEND FOR GLOBAL SECURITIES. Unless otherwise
specified as contemplated by Section 301 for the Securities evidenced thereby,
every Global Security authenticated and delivered hereunder shall bear a legend
in substantially the following form:

	 	 	 	THIS SECURITY IS A GLOBAL SECURITY WITHIN THE MEANING OF THE
INDENTURE HEREINAFTER REFERRED TO AND IS REGISTERED IN THE NAME OF
A DEPOSITARY OR A NOMINEE THEREOF. THIS

19

 

	 	 	 	SECURITY MAY NOT BE TRANSFERRED TO, OR REGISTERED OR EXCHANGED IN
WHOLE OR IN PART FOR A SECURITY REGISTERED IN THE NAME OF ANY
PERSON OTHER THAN SUCH DEPOSITARY OR A NOMINEE THEREOF, EXCEPT IN
THE LIMITED CIRCUMSTANCES DESCRIBED IN THE INDENTURE.

     SECTION 205. FORM OF TRUSTEE’S CERTIFICATE OF AUTHENTICATION. The
Trustee’s certificates of authentication shall be in substantially the
following form:

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

	 	 	 
	

	 	                   , as Trustee
	 
	 	 
	

	 	By:                                                          
	

	 	          Authorized Officer

ARTICLE 3.

THE SECURITIES

     SECTION 301. AMOUNT UNLIMITED; ISSUABLE IN SERIES. The aggregate
principal amount of Securities which may be authenticated and delivered under
this Indenture is unlimited.

     The Securities may be issued in one or more series. There shall be
established in or pursuant to a Board Resolution and, subject to Section 303,
set forth, or determined in the manner provided, in an Officers’ Certificate,
or established in one or more indentures supplemental hereto, prior to the
issuance of Securities of any series:

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

     (2) any limit upon the aggregate principal amount of the Securities of the
series which may be authenticated and delivered under this Indenture (except
for Securities authenticated and delivered upon registration of transfer of, or
in exchange for, or in lieu of, other Securities of the series pursuant to
Section 304, 305, 306, 906 or 1107 and except for any Securities which,
pursuant to Section 303, are deemed never to have been authenticated and
delivered hereunder);

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

     (4) the date or dates on which the principal of any Securities of the
series is payable;

20

 

     (5) the rate or rates at which any Securities of the series shall bear
interest, if any, the date or dates from which any such interest shall accrue,
the Interest Payment Dates on which any such interest shall be payable and the
Regular Record Date for any such interest payable on any Interest Payment Date;

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

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

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

     (9) any provision for the conversion or exchange of Securities of the
series, either at the option of the Holder thereof or the Company, into or for
another security or securities of the Company, the security or securities into
or for which, the period or periods within which, the price or prices,
including any adjustments thereto, at which and the other terms and conditions
upon which any Securities of the series shall be converted or exchanged, in
whole or in part, pursuant to such obligation;

     (10) whether the Guarantor shall guarantee the Securities on the terms set
forth in Article 14;

     (11) the ranking of the obligations of the Guarantor under its respective
Guarantee, if other than on parity with all other unsecured, unsubordinated
indebtedness of the Guarantor;

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

     (13) if the amount of principal of or any premium or interest on any
Securities of the series may be determined with reference to one or more
indices or pursuant to a formula, the manner in which such amounts shall be
determined;

     (14) if other than the currency of the United States of America, the
currency, currencies or currency units in which the principal of or any premium
or interest on any Securities of the series shall be payable and the manner of
determining the equivalent thereof in the currency of the United States of
America for any purpose, including for purposes of the definition of
“Outstanding” in Section 101;

21

 

     (15) if the principal of or any premium or interest on any Securities of
the series is to be payable, at the election of the Company or the Holder
thereof, in one or more currencies or currency units other than that or those
in which such Securities are stated to be payable, the currency, currencies or
currency units in which the principal of or any premium or interest on such
Securities as to which such election is made shall be payable, the periods
within which and the terms and conditions upon which such election is to be
made and the amount so payable (or the manner in which such amount shall be
determined);

     (16) if other than the entire principal amount thereof, the portion of the
principal amount of any Securities of the series which shall be payable upon
declaration of acceleration of the Maturity thereof pursuant to Section 502;

     (17) if the principal amount payable at the Stated Maturity of any
Securities of the series will not be determinable as of any one or more dates
prior to the Stated Maturity, the amount which shall be deemed to be the
principal amount of such Securities as of any such date for any purpose
thereunder or hereunder, including the principal amount thereof which shall be
due and payable upon any Maturity other than the Stated Maturity or which shall
be deemed to be Outstanding as of any date prior to the Stated Maturity (or, in
any such case, the manner in which such amount deemed to be the principal
amount shall be determined);

     (18) if applicable, that the Securities of the series, in whole or any
specified part, shall be defeasible pursuant to Section 1302 or Section 1303
or both such Sections (or, if defeasible by another method, such other method)
and, if other than by an action pursuant to a Board Resolution, the manner in
which any election by the Corporation to defease such Securities shall be
evidenced;

     (19) if and as applicable, that any Securities of the series shall be
issuable in whole or in part in the form of one or more Global Securities and,
in such case, the respective Depositaries for such Global Securities, the form
of any legend or legends which shall be borne by any such Global Security in
addition to or in lieu of that set forth in Section 204 and any circumstances
in addition to or in lieu of those set forth in Clause (2) of the last
paragraph of Section 305 in which any such Global Security may be exchanged in
whole or in part for Securities registered, and any transfer of such Global
Security in whole or in part may be registered, in the name or names of Persons
other than the Depositary for such Global Security or a nominee thereof;

     (20) any addition to or change in the Events of Default which applies to
any Securities of the series and any change in the right of the Trustee or the
requisite Holders of such Securities to declare the principal amount thereof
due and payable pursuant to Section 502;

     (21) any addition to or change in the covenants set forth in Article 10
which applies to Securities of the series; and

     (22) any other terms of the series (which terms shall not be inconsistent
with the provisions of this Indenture, except as permitted by Section 901(5)).

22

 

     All Securities of any one series shall be substantially identical except
as to denomination and except as may otherwise be provided in or pursuant to
the Board Resolution referred to above and (subject to Section 303) set forth,
or determined in the manner provided in the Officers’ Certificate referred to
above or in any such indenture supplemental hereto. All Securities of any one
series need not be issued at one time and, unless otherwise provided, a series
may be reopened for issuances of additional Securities of such series.

     Unless otherwise provided with respect to the Securities of any series, at
the option of the Company, interest on the Securities of any series that bears
interest may be paid by mailing a check to the address of the person entitled
thereto as such address shall appear in the Security Register.

     If any of the terms of a 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 the terms of the series.

     SECTION 302. DENOMINATIONS. The Securities of each series shall be
issuable only in registered form without coupons and only in such denominations
as shall be specified as contemplated by Section 301. In the absence of any
such specified denomination 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 303. 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, one of its Vice Presidents
or an Assistant Treasurer, 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.

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

     At any time and from time to time after the execution and delivery of this
Indenture, the Company may deliver Securities of any series executed by the
Company to the Trustee for authentication, together with a Company Order for
the authentication and delivery of such Securities, and the Trustee in
accordance with the Company Order shall authenticate and deliver such
Securities. If the form or terms of the Securities of the series have been
established by or pursuant to one or more Board Resolutions as permitted by
Sections 201 and 301, 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 Section
601) shall be fully protected in relying upon, an Opinion of Counsel stating,

23

 

     (1) if the form of such Securities has been established by or pursuant to
Board Resolution as permitted by Section 201, that such form has been
established in conformity with the provisions of this Indenture;

     (2) if the terms of such Securities have been established by or pursuant
to Board Resolution as permitted by Section 301, that such terms have been
established in conformity with the provisions of this Indenture; and

     (3) 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, subject
to bankruptcy, insolvency, fraudulent transfer, reorganization, moratorium and
similar laws of general applicability relating to or affecting creditors’
rights and to general equity principles and, if applicable, to provisions of
law which may require that a judgment for money damages rendered by a court in
the United States be expressed in United States dollars.

     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.

     Notwithstanding the provisions of Section 301 and of the preceding
paragraph, if all Securities of a series are not to be originally issued at one
time, it shall not be necessary to deliver the Officers’ Certificate otherwise
required pursuant to Section 301 or the Company Order and Opinion of Counsel
otherwise required pursuant to such preceding paragraph at or prior to the
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.

     Each Security shall be dated the date of its authentication.

     No Security shall be entitled to any benefit under this Indenture or be
valid or obligatory for any purpose unless there appears on such Security a
certificate of authentication substantially in the form provided for herein,
executed by the Trustee by manual signature of an authorized officer, and such
certificate upon any Security shall be conclusive evidence, and the only
evidence, that such Security has been duly authenticated and delivered
hereunder. 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 309, for all purposes of this Indenture such Security shall
be deemed never to have been authenticated and delivered hereunder and shall
never be entitled to the benefits of this Indenture.

     Reference is made to Section 1405 concerning execution and delivery of the
Guarantees.

     SECTION 304. TEMPORARY SECURITIES. Pending the preparation of definitive
Securities of any series, the Company may execute, and upon Company Order the
Trustee shall

24

 

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

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

     SECTION 305. REGISTRATION, REGISTRATION OF TRANSFER AND EXCHANGE. The
Company shall cause to be kept at the Corporate Trust Office of the Trustee a
register (the register maintained in such office or in any other office or
agency of the Company in a Place of Payment being herein sometimes referred to
as the “Security Register”) in which, subject to such reasonable regulations as
it may prescribe, the Company shall provide for the registration of Securities
and of transfers of Securities. The Trustee is hereby appointed 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 a 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 deliver, in the
name of the designated transferee or transferees, one or more new Securities of
the same series, of any authorized denominations and of like tenor and
aggregate principal amount.

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

     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

25

 

instrument of transfer in form satisfactory to the Company and the Security
Registrar duly executed, by the Holder thereof or his attorney duly authorized
in writing.

     No service charge shall be made for any registration of transfer or
exchange of Securities, but the Company may require payment of a sum sufficient
to cover any tax or other governmental charge that may be imposed in connection
with any registration of transfer or exchange of Securities, other than
exchanges pursuant to Section 304, 906 or 1107 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 (A) to issue,
register the transfer of or exchange any Securities of that series (or of that
series and specified tenor, as the case may be) during a period beginning at
the opening of business 15 days before the day of the mailing of a notice of
redemption of any such Securities selected for redemption under Section 1103
and ending at the close of business on the day of such mailing, or (B) to
register the transfer or exchange of any Security so selected for redemption in
whole or in part, except the unredeemed portion of any Security being redeemed
in part.

     The provisions of Clauses (1), (2), (3), (4), (5) and (6) below shall
apply only to Global Securities:

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

     (2) Notwithstanding any other provision in this Indenture, no Global
Security may be exchanged in whole or in part for Securities registered, and no
transfer of a Global Security in whole or in part may be registered, in the
name of any Person other than the Depositary for such Global Security or a
nominee thereof unless (A) such Depositary (i) has notified the Company that it
is unwilling or unable to continue as Depositary for such Global Security or
(ii) has ceased to be a clearing agency registered under the Exchange Act, (B)
there shall have occurred and be continuing an Event of Default with respect to
such Global Security or (C) there shall exist such circumstances, if any, in
addition to or in lieu of the foregoing as have been specified for this purpose
as contemplated by Section 301.

     (3) Subject to the provisions of Clause (2) above, the rights of holders
of such Global Securities shall be exercised only through the Depositary and
shall be limited to those established by law and agreements between such
holders and the Depositary and or the Depositary participants. The initial
Depositary will make book-entry transfers among the Depositary participants and
receive and transmit distributions of principal and interest on the Global
Securities to such Depositary participants.

     The Depositary may be treated by the Company and the Trustee, and any of
their respective agents, employees, officers and directors, as the absolute
owner of the Global Securities for all purposes whatsoever. Notwithstanding the
foregoing, nothing in this Indenture

26

 

shall prevent the Company and the Trustee, or any of their respective agents,
from giving effect to any written certification, proxy or other authorization
furnished by the Depositary, or shall impair the operation of customary
practices governing the exercise of the rights of a holder of any Global
Security. Subject to the foregoing provisions of this Section, any holder may
grant proxies and otherwise authorize any person to take any action which a
holder is entitled to take under this Indenture or the Global Securities.

     (4) Subject to Clause (2) above, any exchange of a Global Security for
other Securities may be made in whole or in part, and all Securities issued in
exchange for a Global Security or any portion thereof shall be registered in
such names as the Depositary for such Global Security shall direct.

     (5) Every Security authenticated and delivered upon registration of
transfer of, or in exchange for or in lieu of, a Global Security or any portion
thereof, whether pursuant to this Section, Section 304, 306, 906 or 1107 or
otherwise, shall be authenticated and delivered in the form of, and shall be, a
Global Security, unless such Security is registered in the name of a Person
other than the Depositary for such Global Security or a nominee thereof.

     (6) None of the Company, the Trustee nor any agent of the Company or the
Trustee will have any responsibility or liability for any aspect of the records

relating to or payments made on account of beneficial ownership interests of a
Global Security or maintaining, supervising or reviewing any records relating
to such beneficial ownership interests.

     SECTION 306. MUTILATED, DESTROYED, LOST OR 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 the Trustee shall authenticate and
deliver, in lieu of any such 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.

27

 

     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 307. PAYMENT OF INTEREST; INTEREST RIGHTS PRESERVED. Except as
otherwise provided as contemplated by Section 301 with respect to any series of
Securities, interest on any Security which is payable, and is punctually paid
or duly provided for, on any Interest Payment Date shall be paid to the Person
in whose name that Security (or one or more Predecessor Securities) is
registered at the close of business on the Regular Record Date
for such interest.

     Any interest on any Security of any series which is payable, but is not
punctually paid or duly provided for, on any Interest Payment Date (herein
called “Defaulted Interest”) shall forthwith cease to be payable to the Holder
on the relevant Regular Record Date by virtue of having been such Holder, and
such Defaulted Interest may be paid by the Company, at its election in each
case, as provided in Clause (1) or (2) below:

     (1) The Company may elect to make payment of any Defaulted Interest to the
Persons in whose name the Securities of such series (or their respective
Predecessor Securities) are registered at the close of business on a Special
Record Date for the payment of such Defaulted Interest, which shall be fixed in
the following manner. The Company shall notify the Trustee in writing of the
amount of Defaulted Interest proposed to be paid on each Security of such
series and the date of the proposed payment, and at the same time the Company
shall deposit with the Trustee an amount of money equal to the aggregate amount
proposed to be paid in respect of such Defaulted Interest or shall make
arrangements satisfactory to the Trustee for such deposit prior to the date of
the proposed payment, such money when deposited to be held in trust for the
benefit of the Persons entitled to such Defaulted Interest as in this Clause
provided. Thereupon the Trustee shall fix a Special Record Date for the payment
of such Defaulted Interest which shall be not more than 15 days and not less
than 10 days prior to the date of the proposed payment and not less than 10
days after the receipt by the Trustee of any 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, 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 therefore having been so mailed, such Defaulted Interest shall be
paid to the Persons in whose names the Securities of such series (or their
respective Predecessor Securities) are registered at the close of business on
such Special Record Date and shall no longer be payable pursuant to the
following Clause (2).

28

 

     (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, 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 308. 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 and any premium and (subject to Section 307) any
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.

     SECTION 309. 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 cancelled by it. The
Company may at any time deliver to the Trustee for cancellation any Securities
previously authenticated and delivered hereunder which the Company may have
acquired in any manner whatsoever, and may deliver to the Trustee (or to any
other Person for delivery to the Trustee) for cancellation any Securities
previously authenticated hereunder which the Company has not issued and sold,
and all Securities so delivered shall be promptly cancelled by the Trustee. No
Securities shall be authenticated in lieu of or in exchange for any Securities
cancelled as provided in this Section, except as expressly permitted by this
Indenture. All cancelled Securities held by the Trustee shall be disposed of by
the Trustee in accordance with its customary procedure, unless otherwise
directed by a Company Order.

     SECTION 310. COMPUTATION OF INTEREST. Except as otherwise specified as
contemplated by Section 301 for Securities of any series, interest on the
Securities of each series shall be computed on the basis of a 360-day year of
twelve 30-day months.

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ARTICLE 4.

SATISFACTION AND DISCHARGE

     SECTION 401. SATISFACTION AND DISCHARGE OF INDENTURE. This Indenture
shall upon Company Request cease to be of further effect (except as to any
surviving rights of registration of transfer or exchange of Securities herein
expressly provided for), and the Trustee, 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 306 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 1003) 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 or
caused to be deposited with the Trustee as trust funds in trust for the
purpose money (either in United States dollars or such other currency or
currency units in which the Securities of any series may be payable) in
an amount sufficient to pay and discharge the entire indebtedness on such
Securities not theretofore delivered to the Trustee for cancellation, for
principal and any premium and interest to the date of such deposit (in
the case of Securities which have become due and payable) or to the
Stated Maturity or Redemption Date, as the case may be;

     (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 herein
provided for 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 607, the obligations of
the Company to any Authenticating Agent under Section 614 and, if money shall
have been deposited with the

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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
1003 shall survive.

     SECTION 402. APPLICATION OF TRUST MONEY. Subject to the provisions of
the last paragraph of Section 1003, 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, to the Persons entitled
thereto, of the principal and any premium and interest for whose payment such
money has been deposited with the Trustee.

ARTICLE 5.

REMEDIES

     SECTION 501. EVENTS OF DEFAULT. Event of Default, wherever used herein
with respect to Securities of any series, means any of the following events
(whatever the reason for such Event of Default and whether it shall be
voluntary or involuntary or be effected by
operation of law or pursuant to any judgment, decree or order of any court or
any order, rule or regulation of any administrative or governmental body):

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

     (2) default in the payment of the principal of or any premium on any
Security of that series when due, whether at its Maturity, upon acceleration or
otherwise; or

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

     (4) default in the performance, or breach, of any covenant, agreement or
warranty of the Company or the Guarantor for the benefit of the Holders of the
Security in 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
continuance of such default or breach for a period of 90 days after there has
been given, by registered or certified mail, to the Company or the Guarantor by
the Trustee or to the Company or the Guarantor and the Trustee by the Holders
of at least 25% in principal amount of the Outstanding Securities of that
series a written notice specifying such default or breach and requiring it to
be remedied and stating that such notice is a Notice of Default hereunder; or

     (5) the entry by a court having jurisdiction in the premises of (A) a
decree or order for relief in respect of the Company, a Significant Subsidiary
or any group of Subsidiaries that, taken as a whole, would constitute a
Significant Subsidiary in an involuntary case or proceeding under any
applicable Federal or State bankruptcy, insolvency, reorganization or other
similar law

31

 

or (B) a decree or order adjudging the Company, a Significant Subsidiary or any
group of Subsidiaries that, taken as a whole, would constitute a Significant
Subsidiary as bankrupt or insolvent, or approving as properly filed a petition
seeking reorganization, arrangement, adjustment or composition of or in respect
of the Company, a Significant Subsidiary or any group of Subsidiaries that,
taken as a whole, would constitute a Significant Subsidiary under any
applicable Federal or State law, or appointing a custodian, receiver,
liquidator, assignee, trustee, sequestrator or other similar official of the
Company, a Significant Subsidiary or any group of Subsidiaries that, taken as a
whole, would constitute a Significant Subsidiary or of any substantial part of
its property, or ordering the winding up or liquidation of its affairs, and the
continuance of any such decree or order for relief or any such other decree or
order unstayed and in effect for a period of 60 consecutive days; or

     (6) the commencement by the Company of a voluntary case or proceeding
under any applicable Federal or State bankruptcy, insolvency, reorganization or
other similar law or of any other case or proceeding to be adjudicated a
bankrupt or insolvent, or the consent by it to the entry of a decree or order
for relief in respect of the Company in an involuntary case or proceeding under
any applicable Federal or State bankruptcy, insolvency, reorganization or other
similar law or to the commencement of any bankruptcy or insolvency case or
proceeding against it, or the filing by it of a petition or answer or consent
seeking reorganization or relief under any applicable Federal or State law, or
the consent by it to the filing of such petition or to the appointment of or
taking possession by a custodian, receiver, liquidator, assignee, trustee,
sequestrator or other similar official of the Company or of any substantial
part of its property, or the making by it of an assignment for the benefit of
creditors, or the admission by it in writing of its inability to pay its debts
generally as they become due, or the taking of corporate action by the Company
in furtherance of any such action; or

     (7) a Guarantee of the Security of that series (other than in accordance
with the terms of the Guarantee) shall be held in any judicial proceeding to be
unenforceable or invalid; or

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

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     SECTION 502. ACCELERATION OF MATURITY; RESCISSION AND ANNULMENT. If an
Event of Default (other than an Event of Default specified in Section 501(5) or
501(6)) with respect to Securities of any series at the time Outstanding occurs
and is continuing, then in every such case the Trustee or the Holders of not
less than 25% in principal amount of the Outstanding Securities of that series
may declare the principal amount of all the Securities of that series (or, if
any Securities of that series are Original Issue Discount Securities, such
portion of the principal amount of such Securities as may be specified by the
terms thereof) to be due and payable immediately, by a notice in writing to the
Company (and to the Trustee if given by Holders), and upon any such declaration
such principal amount (or specified amount) shall become immediately due and
payable. If an Event of Default specified in Section 501(5) or 501(6) with
respect to Securities of any series at the time Outstanding occurs, the
principal amount of all the Securities of that series (or, if any Securities of
that series are Original Issue Discount Securities, such portion of the
principal amount of such Securities as may be specified by the terms thereof)
shall automatically, and without any declaration or other action on the part of
the Trustee or any Holder, become immediately due and payable.

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

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

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

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

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

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

     (2) all Events of Default with respect to Securities of that series
other than the non-payment of the principal of Securities of that series which
have become due solely by such declaration of acceleration, have been cured or
waived as provided in Section 513.

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

     SECTION 503. COLLECTION OF INDEBTEDNESS AND SUITS FOR ENFORCEMENT;
TRUSTEE. The Company covenants that if:

33

 

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

     (2) default is made in the payment of the principal of (or premium, if
any, on) any Security whether at the Maturity or upon acceleration or otherwise
thereof;

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

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

     SECTION 504. TRUSTEE MAY FILE PROOFS OF CLAIM. In case of any judicial
proceeding relative to the Company (or any other obligor upon the Securities),
its property or its creditors, the Trustee shall be entitled and empowered, by
intervention in such proceeding or otherwise, to take any and all actions
authorized under the Trust Indenture Act in order to have claims of the Holders
and the Trustee allowed in any such proceeding. In particular, the Trustee
shall be authorized 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 607.

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

     SECTION 505. 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

34

 

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

     First, to the payment of all amounts due the Trustee under Section 607;
and

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

     Third, to the Company or any other Person or Persons entitled thereto.

     SECTION 507. 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 not less than 25% in principal amount of the
Outstanding Securities of that series shall have made written request to the
Trustee to institute proceedings in respect of such Event of Default in its own
name as Trustee hereunder;

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

     (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;

35

 

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

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

     SECTION 508. UNCONDITIONAL RIGHT OF HOLDERS TO RECEIVE PRINCIPAL, PREMIUM
AND INTEREST AND TO CONVERT. Notwithstanding any other provision in this
Indenture, the Holder of any Security shall have the right, which is absolute
and unconditional, to receive payment of the principal of and any premium and
(subject to Section 307) interest on such Security on the respective Stated
Maturities expressed in such Security (or, in the case of redemption, on the
Redemption Date) and to convert such Security in accordance with the provisions
in the form of Security of any particular series pursuant to Section 301(9) and
to institute suit for the enforcement of any such payment and right to convert,
and such rights shall not be impaired without the consent of such Holder.

     SECTION 509. RESTORATION OF RIGHTS AND REMEDIES. If the Trustee or any
Holder has instituted any proceeding to enforce any right or remedy under this
Indenture and such proceeding has been discontinued or abandoned for any
reason, or has been determined adversely to the Trustee or to such Holder, then
and in every such case, subject to any determination in such proceeding, the
Company, the Trustee and the Holders shall be restored severally and
respectively to their former positions hereunder and thereafter all rights and
remedies of the Trustee and the Holders shall continue as though no such
proceeding had been instituted.

     SECTION 510. 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 306, 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 511. 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.

36

 

     SECTION 512. 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 the provisions of Section 601, the Trustee shall have the
right to decline to follow any such direction if the Trustee in good faith
shall, by a Responsible Officer or Officers of the Trustee, determine that the
proceeding so directed would involve the Trustee in personal liability.

     SECTION 513. WAIVER OF PAST DEFAULTS. The Holders of not less than a
majority in principal amount of the Outstanding Securities of any series may on
behalf of the Holders of all the Securities of such series waive any past
default hereunder with respect to such series and its consequences, except a
default:

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

     (2) in respect of a covenant or provision hereof which under Article 9
cannot be modified or amended without the consent of the Holder of each
Outstanding Security of such series affected.

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

     SECTION 514. UNDERTAKING FOR COSTS. 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, a court may require
any party litigant in such suit to file an undertaking to pay the costs of such
suit, and may assess costs against any such party litigant, in the manner and
to the extent provided in the Trust Indenture Act; provided that neither this
Section nor the Trust Indenture Act shall be deemed to authorize any court to
require such an undertaking or to make such an assessment in any suit
instituted by the Company.

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ARTICLE 6.

THE TRUSTEE

     SECTION 601. CERTAIN DUTIES AND RESPONSIBILITIES. The Trustee, prior to
the occurrence of an Event of Default and after the curing or waiving of all
Events of Default which may have occurred, undertakes to perform such duties
and only such duties as are specifically set forth in this Indenture. In case
an Event of Default to the actual knowledge of a Responsible Officer of the
Trustee has occurred, has not been waived and is continuing, the Trustee shall
exercise such of the rights and powers vested in it by this
Indenture, and use the same degree of care and skill in their exercise, as
a prudent man would exercise or use under the circumstances in the conduct of
his own affairs.

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

     (1) prior to the occurrence of an Event of Default and after the curing or
waiving of all such Events of Default which may have occurred;

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

     (b) in the absence of bad faith on the part of the Trustee, the
Trustee may conclusively rely, as to the truth of the statements and the
correctness of the opinions expressed therein, upon any statements,
certificates or opinions furnished to the Trustee and conforming to the
requirements of this Indenture; but in the case of any such statements,
certificates or opinions which by any provision hereof are specifically
required to be furnished to the Trustee, the Trustee shall be under a
duty to examine the same to determine whether or not they conform to the
requirements of this Indenture;

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

     (3) the Trustee shall not be liable with respect to any action taken or
omitted to be taken by it in good faith in accordance with the direction of the
Holders of not less than a majority in principal amount of the Securities at
the time outstanding relating to the time, method and place of conducting a
proceeding for any remedy available to the Trustee, or exercising any trust or
power conferred upon the Trustee, under this Indenture.

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

38

 

     This Section is in furtherance of and subject to Sections 315 and 316 of
the Trust Indenture Act.

     SECTION 602. NOTICE OF DEFAULTS. If a default occurs and is continuing
with respect to the Securities of any series and if it is known to a
Responsible Officer of the Trustee, the Trustee shall give the Holders of the
Securities of such series, notice of such default within 90 days after it
occurs or, if later, after a Responsible Officer of the Trustee has knowledge
of such default. Except in the case of a default in payment of principal of,
premium on or interest on any Security of any series, the Trustee may withhold
the notice if and so long as its corporate trust committee or a committee of
its Responsible Officers in good faith determines that withholding the notice
is in the interests of the Holders of Securities of that series. For purposes
of this Section, the term default means any event that is, or after notice or
lapse of time or both would become, an Event of Default with respect to
Securities of such series.

     SECTION 603. CERTAIN RIGHTS OF TRUSTEE. Subject to the provisions of
Section 601:

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

     (2) 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 shall be sufficiently evidenced by a Board
Resolution;

     (3) 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, rely upon an Officers’ Certificate;

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

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

     (6) the Trustee shall not be bound to make any investigation into the
facts or matters stated in any resolution, certificate, statement, instrument,
opinion, report, notice, request, direction, consent order, bond, debenture,
note, other evidence of indebtedness or other paper or document, but the
Trustee, in its discretion may make such further inquiry or investigation into

39

 

such facts or matters as it may see fit, and, if the Trustee shall determine to
make such further inquiry or investigation, it shall be entitled to examine the
books, records and premises of the Company, personally or by agent or attorney
at the sole cost and expense of the Company;

     (7) 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, or for the supervision of, any agent or attorney
appointed with due care by it hereunder;

     (8) in the event the Trustee is also acting as Paying Agent,
Authenticating Agent or Security Registrar hereunder, the rights and
protections afforded to the Trustee pursuant to this Indenture shall also be
afforded to such Paying Agent, Authenticating Agent or Security Registrar;

     (9) the Trustee shall not be charged with knowledge of an Event of Default
unless a Responsible Officer of the Trustee obtains actual knowledge of such
event or the Trustee receives written notice of such event from the Company or
from Holders of Securities of any series so affected evidencing no less than
51% of the aggregate outstanding principal amount of Securities of such series;
and

     (10) without prejudice to any other rights available to the Trustee under
applicable law, when the Trustee incurs expenses or renders services in
connection with an Event of Default specified in Section 501(5) or Section
501(6), such expenses (including the fees and expenses of its counsel) and the
compensation for such services are intended to constitute expenses of
administration under any bankruptcy or insolvency law.

     SECTION 604. NOT RESPONSIBLE FOR RECITALS OR ISSUANCE OF SECURITIES. The
recitals contained herein and in the Securities, except the Trustee’s
certificates of authentication, shall be taken as the statements of the
Company, and 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. Neither
the Trustee nor any Authenticating Agent shall be accountable for the use or
application by the Company of Securities or the proceeds thereof.

     SECTION 605. 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 608 and 613, 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 606. MONEY HELD IN TRUST. Money held by the Trustee in trust
hereunder need not be segregated from other funds except to the extent required
by law. The Trustee shall be under no liability for interest on any money
received by it hereunder except as otherwise agreed with the Company.

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     SECTION 607. COMPENSATION AND REIMBURSEMENT. The Company agrees:

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

     (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 the Trustee and its officers, directors, agents, and
employees for, and to hold it and its officers, directors, agents, and
employees harmless against, any loss, liability or expense 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 or liability in
connection with the exercise or performance of any of its powers or duties
hereunder.

     As security for the performance of the obligations of the Company under
this Section, the Trustee shall have a lien prior to the Securities upon all
property and funds held or collected by the Trustee as such, except funds held
in trust for the benefit of the Holders of particular Securities.

     SECTION 608. CONFLICTING INTERESTS. If the Trustee has or shall acquire
a conflicting interest within the meaning of the Trust Indenture Act, the
Trustee shall either eliminate such interest or resign, to the extent and in
the manner provided by, and subject to the provisions of, the Trust Indenture
Act and this Indenture. To the extent permitted by such Act, the Trustee shall
not be deemed to have a conflicting interest by virtue of being a trustee under
this Indenture with respect to Securities of more than one series.

     SECTION 609. CORPORATE TRUSTEE REQUIRED; ELIGIBILITY. There shall at all
times be a Trustee hereunder, which may be Trustee hereunder for Securities of
one or more other series. Each Trustee shall be a Person that is eligible
pursuant to the Trust Indenture Act to act as such and has a combined capital
and surplus of at least $50,000,000 and has its Corporate Trust Office in the
City of New York. If any such Person publishes reports of condition at least
annually, pursuant to law or to the requirements of its supervising or
examining authority, then for the purposes of this Section and to the extent
permitted by the Trust Indenture Act, the combined capital and surplus of such
Person shall be deemed to be its combined capital and surplus as set forth in
its most recent report of condition so published. If at any time the Trustee
with respect to the Securities of any series 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 610. RESIGNATION AND REMOVAL; APPOINTMENT OF SUCCESSOR. No
resignation or removal of the Trustee and no appointment of a successor

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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 611.

     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 611 shall
not have been delivered to the Trustee within 30 days after the giving of such
notice of resignation, the resigning Trustee may petition any court of
competent jurisdiction for the appointment of a successor Trustee with respect
to the Securities of such series.

     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.

     If at any time:

     (1) the Trustee shall fail to comply with Section 608 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,

     (2) the Trustee shall cease to be eligible under Section 609 and shall
fail to resign after written request therefor by the Company or by any such
Holder, 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, (A) the Company by a Board Resolution may remove the
Trustee with respect to all Securities, or (B) subject to Section 514, 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 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 611. If, within one year after such
resignation, removal or incapability, or the occurrence of such vacancy, a
successor Trustee with respect to the Securities of any series shall be
appointed by act of the Holders of a majority in principal amount of the
Outstanding Securities of such series delivered to the Company and the retiring
Trustee, the successor Trustee so appointed shall, forthwith upon its
acceptance of such appointment in accordance with the applicable requirements
of Section

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611, become the successor Trustee with respect to the Securities of such series
and to that extent supersede the successor Trustee appointed by the Company. If
no successor Trustee with respect to the Securities of any series shall have
been so appointed by the Company or the Holders and accepted appointment in the
manner required by Section 611, 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.

     The Company shall give notice of each resignation and each removal of the
Trustee with respect to the Securities of any series and each appointment of a
successor Trustee with respect to the Securities of any series to all Holders
of Securities of such series in the manner provided in Section 106. 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 611. ACCEPTANCE OF APPOINTMENT BY SUCCESSOR. In case of the
appointment hereunder of a successor Trustee with respect to all Securities,
every such successor Trustee so appointed shall execute, acknowledge and
deliver to the Company and to the retiring Trustee an instrument accepting such
appointment, and thereupon the resignation or removal of the retiring Trustee
shall become effective and such successor Trustee, without any further act,
deed or conveyance, shall become vested with all the rights, powers, trusts and
duties of the retiring Trustee; but, on the request of the Company or the
successor Trustee, such retiring Trustee shall, upon payment of its charges,
execute and deliver an instrument transferring to such successor Trustee all
the rights, powers and trusts of the retiring Trustee and shall duly assign,
transfer and deliver to such successor Trustee all property and money held by
such retiring Trustee hereunder.

     In case of the appointment hereunder of a successor Trustee with respect
to the Securities of one or more (but not all) series, the Company, the
retiring Trustee and each successor Trustee with respect to the Securities of
one or more series shall execute and deliver an indenture supplemental hereto
wherein each successor Trustee shall accept such appointment and which (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
desirable to confirm that all the rights, powers, trusts and duties of the
retiring Trustee with respect to the Securities of that or those series as to
which the retiring Trustee is not retiring shall continue to be vested in the
retiring Trustee, and (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

43

 

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.

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

     No successor Trustee shall accept its appointment unless at the time of
such acceptance such successor Trustee shall be qualified and eligible under
this Article. No trustee hereunder shall be liable for the acts or omissions
of any successor Trustee.

     SECTION 612. 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 or consolidation to such authenticating Trustee may adopt
such authentication and deliver the Securities so authenticated with the same
effect as if such successor Trustee had itself authenticated such Securities.

     SECTION 613. PREFERENTIAL COLLECTION OF CLAIMS AGAINST COMPANY. If and
when the Trustee shall be or become a creditor of the Company (or
any other obligor upon the Securities), the Trustee shall be subject to the
provisions of the Trust Indenture Act regarding the collection of claims
against the Company (or any such other obligor).

     SECTION 614. APPOINTMENT OF AUTHENTICATING AGENT. The Trustee may
appoint an Authenticating Agent or Agents with respect to one or more series of
Securities which shall be authorized to act on behalf of the Trustee to
authenticate Securities of such series issued upon original issue and upon
exchange, registration of transfer or partial redemption thereof or pursuant to
Section 306, and Securities so authenticated shall be entitled to the benefits
of this Indenture and shall be valid and obligatory for all purposes as if
authenticated by the Trustee hereunder. Wherever reference is made in this
Indenture to the authentication and delivery of Securities by the Trustee or
the Trustee’s certificate of authentication, such reference shall be deemed to
include authentication and delivery on behalf of the Trustee by an
Authenticating Agent and a certificate of authentication executed on behalf of
the Trustee by an Authenticating Agent.
Each Authenticating
Agent shall be
acceptable to the
Company and shall at all times be a corporation organized and doing
business under the laws of the United States of America, any State thereof or
the District of Columbia, authorized under such laws to act as Authenticating

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Agent, having a combined capital and surplus of not less than $50,000,000 and
subject to supervision or examination by Federal or State authority. If such
Authenticating Agent publishes reports of condition at least annually, pursuant
to law or to the requirements of said supervising or examining authority, then
for the purposes of this Section, the combined capital and surplus of such
Authenticating Agent shall be deemed to be its combined capital and surplus as
set forth in its most recent report of condition so published. If at any time
an Authenticating Agent shall cease to be eligible in accordance with the
provisions of this Section, such Authenticating Agent shall resign immediately
in the manner and with the effect specified in this Section.

     Any corporation into which an Authenticating Agent may be merged or
converted or with which it may be consolidated, or any corporation resulting
from any merger, conversion or consolidation to which such Authenticating Agent
shall be a party, or any corporation succeeding to 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 give 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. 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 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 alternative certificate of
authentication in the following form:

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

__________________________ , as Trustee

By:________________________________

As Authenticating Agent

By:________________________________

Authorized Officer

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ARTICLE 7.

HOLDERS’ LISTS AND REPORTS BY TRUSTEE AND COMPANY

     SECTION 701. COMPANY TO FURNISH TRUSTEE NAMES AND ADDRESSES OF HOLDERS.
The Company will furnish or cause to be furnished to the Trustee,

     (1) semi-annually, not later than June 30 and December 31 in each year, a
list in such form as the Trustee may reasonably require, of the names and
addresses of the Holders of Securities of each series as of the preceding June
30 or December 31 as the case may be; and

     (2) 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;

excluding from any such list names and addresses received by the Trustee in its
capacity as Security Registrar.

     SECTION 702. PRESERVATION OF INFORMATION; COMMUNICATIONS TO HOLDERS.
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 701 and the names and addresses of
Holders received by the Trustee in its capacity as Security Registrar. The
Trustee may destroy any list furnished to it as provided in Section 701 upon
receipt of a new list so furnished.

     The rights of Holders to communicate with other Holders with respect to
their rights under this Indenture or under the Securities, and the
corresponding rights and privileges of the Trustee, shall be as provided by the
Trust Indenture Act.

     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 any disclosure
of information as to names and addresses of Holders made pursuant to the Trust
Indenture Act.

     SECTION 703. REPORTS BY TRUSTEE. The Trustee shall transmit to the
Holders such reports concerning the Trustee and its actions under this
Indenture as may be required pursuant to the Trust Indenture Act at the times
and in the manner provided pursuant thereto.

     Reports so required to be transmitted at stated intervals of not more than
12 months shall be transmitted no later than    in each calendar year,
commencing in    .

     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

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and with the Company. The Company
will notify the Trustee when any Securities are listed on any stock exchange.

ARTICLE 8.

CONSOLIDATION, MERGER OR SALE OF ASSETS

     SECTION 801. CONSOLIDATION, MERGER OR SALE OF ASSETS BY THE COMPANY.
The Company shall not consolidate with or merge into any other Person or sell,
assign, convey or transfer or otherwise dispose of all or substantially all of
its properties and assets to any Person, unless:

     (a) the Person formed by such consolidation or into which the
Company is merged or the Person which acquires by conveyance or transfer
the properties and assets of the Company shall be a Person organized and
validly existing under the laws of the United States of America, 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, the due and punctual payment of the
principal of (and premium, if any) and interest on all the Notes and the
performance of every covenant of this Indenture on the part of the
Company to be performed or observed;

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

     (c) the Company has delivered to the Trustee an Officers’
Certificate and an Opinion of Counsel each stating that such
consolidation, merger, conveyance or transfer and such supplemental
indenture comply with paragraphs (a) and (b) of this section 801 and that
all conditions precedent herein provided for relating to such transaction
have been complied with.

     SECTION 802. SUCCESSOR SUBSTITUTED. Upon any consolidation of the
Company with, or merger of the Company into, any other Person or any conveyance
or transfer of all or substantially all of the properties and assets of the
Company in accordance with Section 801, the successor Person formed by such
consolidation or into which the Company is merged or to which such conveyance
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 Person had been named as the
Company herein, and thereafter the predecessor Person shall be relieved of
all obligations and covenants under this Indenture and the Securities.

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ARTICLE 9.

SUPPLEMENTAL INDENTURES

     SECTION 901. SUPPLEMENTAL INDENTURES WITHOUT CONSENT OF HOLDERS. Without
the consent of any Holders, the Company, when authorized by a Board Resolution,
the Guarantor, if applicable, 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 Person to the Company and the
assumption by any such successor of the covenants of the Company herein and in
the Securities or the Guarantees, if any;

     (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;

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

     (4) to add to 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 to permit or facilitate the issuance of Securities
in uncertificated form;

     (5) to add to, change or eliminate any of the provisions of this Indenture
in respect to one or more series of Securities, provided that any such
addition, change or elimination (A) shall neither (i) apply to any Security or
series created prior to the execution of such supplemental indenture and
entitled to the benefit of such provision nor (ii) modify the rights of the
Holder of any such Security with respect to such provision or (B) shall become
effective only when there is no such Security Outstanding;

     (6) to secure the Securities;

     (7) to establish the form or terms of Securities or the Guarantees, if
any, of any series as permitted by Sections 201 and 301;

     (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 611;

     (9) to cure any ambiguity, to correct or supplement any provision herein
which may be defective or inconsistent with any other provision herein, or to
make any other provisions with respect to matters or questions arising under
this Indenture; provided that such action pursuant to

48

 

this Clause (9) shall not
adversely affect the interests of the Holders of Securities of any series in
any material respect;

     (10) to make provisions with respect to the conversion rights of Holders,
including providing for the conversion of the Securities into any security or
securities of the Company; or

     (11) to provide for the Guarantees of the Securities of any series and/or
to specify the ranking of the obligations of the Guarantor under its Guarantee.

     SECTION 902. SUPPLEMENTAL INDENTURES WITH CONSENT OF HOLDERS. With the
consent of the Holders of not less than a majority in principal amount of the
Outstanding Securities of each series affected by such supplemental indenture,
by Act of said Holders delivered to the Company and the Trustee, the Company,
when authorized by a Board Resolution, the Guarantor, if applicable, authorized
by a Board Resolution, and the Trustee may enter into an indenture or
indentures supplemental hereto for the purpose of adding any provisions to or
changing in any manner or eliminating any of the provisions of this Indenture,
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
affected thereby:

     (1) change the Stated Maturity of the principal of, or any installment of
principal of or interest on, any Security, or reduce the principal amount
thereof or the rate of interest thereon (including any change in the index,
indices or formula pursuant to which such rate is determined that would reduce
such rate for any period) or any premium payable upon the redemption thereof,
change the right to convert any Security in accordance with the provisions in
the form of such Security pursuant to Section 301(9) hereof, or reduce the
amount of the principal of an Original Issue Discount Security or any other
Security which would be due and payable upon a declaration of acceleration of
the Maturity thereof pursuant to Section 502, or change any Place of Payment
where, or the coin or currency 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 Stated Maturity thereof (or, in
the case of redemption, on or after the Redemption Date) or any such right to
convert, or

     (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 provisions of
this Indenture or certain defaults hereunder and their consequences) provided
for in this Indenture, or

     (3) modify any of the provisions of this Section, Section 513 or Section
1008, 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 1008, or the deletion of this proviso, in accordance
with the requirements of Sections 611 and 901(8), or

49

 

     (4) release the Guarantor from its obligations under its Guarantee (other
than in accordance with the terms thereof) without the consent of the Holder of
each Security so affected.

     A supplemental indenture which changes or eliminates any covenant or other
provision of this Indenture which has expressly been included solely for the
benefit of one or more particular series of 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 of Holders shall approve the substance thereof.

     SECTION 903. EXECUTION OF SUPPLEMENTAL INDENTURES. In executing, or
accepting the additional trusts created by, any supplemental indenture
permitted by this Article or the modifications thereby of the trusts created by
this Indenture, the Trustee shall be entitled to receive, and (subject to
Section 601) shall be fully protected in relying upon, an Opinion of Counsel
stating that the execution of such supplemental indenture is authorized or
permitted by this Indenture. The Trustee may, but shall not be obligated to,
enter into any such supplemental indenture which affects the Trustee’s own
rights, duties or immunities under this Indenture or otherwise.

     SECTION 904. 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 905. CONFORMITY WITH THE TRUST INDENTURE ACT. Every supplemental
indenture executed pursuant to this Article shall conform to the requirements
of the Trust Indenture Act.

     SECTION 906. REFERENCE IN SECURITIES TO SUPPLEMENTAL INDENTURE.
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.

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ARTICLE 10.

COVENANTS

     SECTION 1001. PAYMENT OF PRINCIPAL, PREMIUM AND INTEREST. The Company
covenants and agrees for the benefit of the Holders of Securities that it will
duly and punctually pay the principal of and any premium and interest on the
Securities in accordance with the terms of such Securities and this Indenture.

     SECTION 1002. MAINTENANCE OF OFFICE OR AGENCY. The Company will maintain
in each Place of Payment for any series of Securities an office or agency where
Securities of that series may be presented or surrendered for payment, where
Securities of that series may be surrendered for registration of transfer or
exchange and where notices and demands to or upon the Company in respect of the
Securities of that series and this Indenture may be served. The Company will
give prompt written notice to the Trustee of the location, and any change in
the location, of such office or agency. If at any time the Company shall fail
to maintain any such required office or agency or shall fail to furnish the
Trustee with the address thereof, such presentations, surrenders, notices and
demands may be made or served at the Corporate Trust Office of the Trustee, and
the Company hereby appoints the Trustee as its agent to receive all such
presentations, surrenders, notices and demands.

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

     SECTION 1003. 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
or any premium or interest on any of the Securities of that series, segregate
and hold in trust for the benefit of the Persons entitled thereto a sum
sufficient to pay the principal and any premium and interest so becoming due
until such sums shall be paid to such Persons or otherwise disposed of as
herein provided and will promptly notify the Trustee of its action or failure
so to act.

     Whenever the Company shall have one or more Paying Agents for any series
of Securities, it will, prior to each due date of the principal of or any
premium or interest on any Securities of that series, deposit with a Paying
Agent a sum sufficient to pay such amount, such sum to be held as provided by
the Trust Indenture Act, and (unless such Paying Agent is the Trustee) the
Company will promptly notify the Trustee of its action or failure so to act.

     The Company will cause each Paying Agent 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)

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comply with the provisions of
the Trust Indenture Act applicable to it as a Paying Agent and (2) during the
continuance of any default by the Company (or any other obligor upon the
Securities of that series) in the making of any payment in respect of the
Securities of that series, upon the written request of the Trustee, forthwith
pay to the Trustee all sums held in trust by such Paying Agent for payment in
respect of the Securities of that series.

     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 or any premium or
interest on any Security of any series and remaining unclaimed for two years
after such principal, premium or interest has become due and payable shall be
paid to the Company on Company Request, or (if then held by the Company) shall
be discharged from such trust; and the Holder of such Security shall
thereafter, as an unsecured general creditor, look only to the Company for
payment thereof, and all liability of the Trustee or such Paying Agent with
respect to such trust money, and all liability of the Company as trustee
thereof, shall thereupon cease; provided, however, that the Trustee or such
Paying Agent, before being required to make any such repayment, may at the
expense of the Company cause to be published once, in a newspaper published in
the English language, customarily published on each Business Day and of general
circulation in the Borough of Manhattan, The City of New York, notice that such
money remains unclaimed and that, after a date specified therein, which shall
not be less than 30 days from the date of such publication, any unclaimed
balance of such money then remaining will be repaid to the Company.

     SECTION 1004. COMMISSION REPORTS. The Company shall deliver to the
Trustee, within 15 days after it files them 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 by rules and
regulations prescribe) which the Company is required to file with the
Commission pursuant to Section 13 or 15(d) of the Exchange Act. The Company
also shall comply with the other provisions of Section 314(a) of the Trust
Indenture Act.

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

     SECTION 1005. COMPLIANCE CERTIFICATE.

     (1) The Company shall deliver to the Trustee, within 120 days after the
end of each fiscal year of the Company, an Officers’ Certificate stating that a
review of the activities of the

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Company and its Subsidiaries during the
preceding fiscal year has been made under the supervision of the officers
signing the Officers’ Certificate, with a view to determining whether the
Company has kept, observed, performed and fulfilled its obligations under this
Indenture, and further stating, as to each such officer signing such Officers’
Certificate, that to the best of his knowledge the Company has kept, observed,
performed and fulfilled each and every covenant (without regard to periods of
grace or notice requirements) contained in this Indenture and is not in default
in the performance or observance of any of the terms, provisions and conditions
hereof (or, if a Event of Default shall have occurred, describing all such
Events of Default of which he may have knowledge).

     (2) The Company will, so long as any of the Securities are outstanding,
deliver to the Trustee, forthwith upon becoming aware of any Event of Default,
an Officers’ Certificate specifying such Event of Default and what action the
Company is taking or proposes to take with respect thereto.

     SECTION 1006. STAY, EXTENSION AND USURY LAWS. The Company covenants (to
the extent that it may lawfully do so) that it will not at any time insist
upon, plead, or in any manner whatsoever claim or take the benefit or advantage
of, any stay, extension or usury law wherever enacted, now or at any time
hereafter in force, which may affect the covenants or the performance of this
Indenture or the Securities; and the Company (to the extent it may lawfully do
so) hereby expressly waives all benefit or advantage of any such law and
covenants that it will not, by resort to any such law, hinder, delay or impede
the execution of any power herein granted to the Trustee, but will suffer and
permit the execution of every such power as though no such law has been
enacted.

     SECTION 1007. CORPORATE EXISTENCE. Subject to Article 8, 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 the corporate, partnership or
other existence of each Significant Subsidiary in accordance with the
respective organizational documents of each Significant Subsidiary and the
rights (charter and statutory), licenses and franchises of the Company and its
Significant Subsidiaries; provided, however, that the Company shall not be
required to preserve any such right, license or franchise, or the corporate,
partnership or other existence of any Significant Subsidiary, if the Board of
Directors shall determine that the preservation thereof is no longer desirable
in the conduct of the business of the
Company and its Subsidiaries taken as a whole and that the loss thereof is
not adverse in any material respect to the Holders.

     SECTION 1008. WAIVER OF CERTAIN COVENANTS. Except as otherwise specified
as contemplated by Section 301 for Securities of such series, the Company may,
with respect to the Securities of any series, omit in any particular instance
to comply with any term, provision or condition set forth in Section 1010 or
1011 with respect to the Securities of such series or in any covenant provided
pursuant to Section 301(19), 901(2) or 901(7) for the benefit of the Holders of
such series, if before the time for such compliance the Holders of at least a
majority in principal amount of the Outstanding Securities of such series
shall, by Act of 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,

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the obligations of the Company and the duties of the Trustee in respect of any
such term, provision or condition shall remain in full force and effect.

     SECTION 1009. TAXES. The Company shall, and shall cause each of its
Significant Subsidiaries to, pay prior to delinquency all taxes, assessments
and governmental levies, except as contested in good faith and by appropriate
proceedings.

     SECTION 1010. LIMITATION ON LIENS.
(a) The Company will not, nor will it
permit any Domestic Subsidiary to, directly or indirectly, issue, assume or
Guarantee any Debt if such Debt or Guarantee is subordinate to the
Notes and is secured by any Lien, without in any such case effectively securing,
concurrently with the issuance, assumption or Guaranty of any such Debt, any
series of Notes (together with, if the Company shall so determine, any other
indebtedness of or Guaranteed by the Company or such Domestic Subsidiary
ranking equally with such series of Notes and then existing or thereafter
created) equally and ratably with such Debt, so long as such Debt is so
secured; provided, however, that the foregoing restriction shall not apply to
Permitted Liens.

     (b) “Permitted Liens” means:

     (1) Liens on any property acquired, constructed or improved
by the Company or any Domestic Subsidiary after the date hereof,
which are created or assumed contemporaneously with or within
three years after its acquisition, or completion of construction
or improvement (or within six months thereafter pursuant to a firm
commitment for financing arrangements entered into within that
three-year period) to secure or provide for the payment of the
purchase price or cost thereof, or Liens existing on any property
at the time of its acquisition;

     (2) Liens existing on any property, shares of stock or
indebtedness acquired from a Person merged with or into the
Company or a Domestic Subsidiary after the date hereof;

     (3) with respect to any corporation that becomes a Domestic
Subsidiary after the date hereof, Liens on property of, or shares
of stock or indebtedness issued by, any such corporation existing
at the time it becomes a Domestic Subsidiary and not incurred in
connection with or in anticipation of such corporation becoming a
Domestic Subsidiary;

     (4) Liens to secure Debt of a Domestic Subsidiary owed to the
Company or Debt of a Domestic Subsidiaries owed to another
Domestic Subsidiary;

     (5) Liens in favor of governmental bodies to secure partial,
progress, advance or other payments pursuant to any contract or
statute;

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     (6) any Lien existing on the date of the indenture; or

     (7) Liens for the sole purpose of extending, renewing or
replacing Debt, in whole or in part, including any increase in the
amount of such Debt not prohibited under this Indenture.

     In the event that the Company shall hereafter secure any series of
securities equally and ratably with any other obligation or indebtedness
pursuant to the provisions of this Section, the Trustee is hereby authorized,
but not required, to enter into an indenture or agreement supplemental hereto
and to take such action, if any, as it may deem advisable to enable it to
enforce effectively the rights of the Holders of the Notes so secured, equally
and ratably with such other obligation or indebtedness.

     SECTION 1011. LIMITATION ON SALE AND LEASEBACK TRANSACTIONS.
The Company and its Subsidiaries may incur Attributable Debt in
respect of a Sale and Leaseback Transaction after the date of this
Indenture; provided, however, that the aggregate amount of any such
Attributable Debt incurred after the date of this Indenture pursuant
to this Section 1011 shall not exceed $75.0 million at any
one time.

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ARTICLE 11.

REDEMPTION OF SECURITIES

     SECTION 1101. 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
301 for such Securities) in accordance with this Article.

     SECTION 1102. ELECTION TO REDEEM; NOTICE TO TRUSTEE. The election of the
Company to redeem any Securities shall be evidenced by a Board Resolution or in
another manner specified as contemplated by Section 301 for such Securities. In
case of any redemption at the election of the Company of less than all the
Securities of any series (including any such redemption affecting only a single
Security), the Company shall, at least 60 days prior to the Redemption Date
fixed by the Company (unless a shorter notice shall be satisfactory to the
Trustee), notify the Trustee in writing of such Redemption Date, of the
principal amount of Securities of such series to be redeemed and, if
applicable, of the tenor of the Securities to be redeemed. In the case of any
redemption of Securities (a) prior to the expiration
of any restriction on such redemption provided in the terms of such
Securities or elsewhere in this Indenture, or (b) pursuant to an election of
the Company which is subject to a condition specified 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 or condition.

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     SECTION 1103. SELECTION OF TRUSTEE OF SECURITIES TO BE REDEEMED. If less
than all the Securities of any series are to be redeemed (unless all the
Securities of such series and of a specified tenor are to be redeemed or unless
such redemption affects only a single Security), the particular Securities to
be redeemed shall be selected not more than 60 days prior to the Redemption
Date by the Trustee, from the Outstanding Securities of such series not
previously called for redemption, by such method as the Trustee shall deem fair
and appropriate and which may provide for the selection for redemption of a
portion of the principal amount of any Security of such series, provided that
the unredeemed portion of the principal amount of any Security shall be in an
authorized denomination (which shall not be less than the minimum authorized
denomination) for such Security. If less than all the Securities of such series
and of a specified tenor are to be redeemed (unless such redemption affects
only a single Security), the particular Securities to be redeemed shall be
selected not more than 60 days prior to the Redemption Date by the Trustee,
from the Outstanding Securities of such series and specified tenor not
previously called for redemption in accordance with the preceding sentence.

     The Trustee shall promptly notify the Company in writing of the Securities
selected for redemption as aforesaid and, in case of any Securities selected
for partial redemption as aforesaid, the principal amount thereof to be
redeemed.

     The provisions of the two preceding paragraphs shall not apply with
respect to any redemption affecting only a single Security, whether such
Security is to be redeemed in whole or in part. In the case of any such
redemption in part, the unredeemed portion of the principal amount of the
Security shall be in an authorized denomination (which shall not be less than
the minimum authorized denomination) for such Security.

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

     SECTION 1104. NOTICE OF REDEMPTION. Notice of redemption shall be given
by first-class mail, postage prepaid, mailed not less than 30 nor more than 60
days prior to the Redemption Date, to each Holder of Securities to be redeemed,
at his address appearing in the Security Register.

     All notices of redemption shall state:

     (1) the Redemption Date,

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

     (3) if less than all the Outstanding Securities of any series
consisting of more than a single Security are to be redeemed, the
identification (and, in the case of partial redemption of any such Securities,
the principal amounts) of the particular Securities to be redeemed and, if less

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than all the Outstanding Securities of any series consisting of a single
Security are to be redeemed, the principal amount of the particular Security 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 each such Security is to be surrendered for
payment of the Redemption Price, and

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

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

     SECTION 1105. DEPOSIT OF REDEMPTION PRICE. Prior to any Redemption Date,
the Company shall deposit with the Trustee or with a Paying Agent (or, if the
Company is acting as its own Paying Agent, segregate and hold in trust as
provided in Section 1003) an amount of money sufficient to pay the Redemption
Price of, and (except if the Redemption Date shall be an Interest Payment Date)
accrued interest on, all the Securities which are to be redeemed on that date.

     SECTION 1106. SECURITIES PAYABLE ON REDEMPTION DATE. Notice of
redemption having been given as aforesaid, the Securities so to be redeemed
shall, on the Redemption Date, become due and payable at the Redemption Price
therein specified, and from and after such date (unless the Company shall
default in the payment of the Redemption Price and accrued interest) such
Securities shall cease to bear interest. Upon surrender of any such Security
for redemption in accordance with said notice, such Security shall be paid by
the Company at the Redemption Price, together with accrued interest to the
Redemption Date; provided, however, that, unless otherwise specified as
contemplated by Section 301, installments of interest whose Stated Maturity is
on or prior to the Redemption Date will be payable to the Holders of such
Securities, or one or more Predecessor Securities, registered as such at the
close of business on the relevant Record Dates according to their terms and the
provisions of Section 307.

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

     SECTION 1107. SECURITIES REDEEMED IN PART. Any Security which is to be
redeemed only in part shall be surrendered at a Place of Payment therefor
(with, if the Company or the Trustee so requires, due endorsement by, or a
written instrument of transfer in form satisfactory to the Company and the
Trustee duly executed by, the Holder thereof or his attorney duly authorized in
writing), and the Company shall execute, and the Trustee shall authenticate and
deliver to the Holder of such Security without service charge, a new Security
or Securities of

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the same series and of like tenor, of any authorized
denomination as requested by such Holder, in aggregate principal amount equal
to and in exchange for the unredeemed portion of the principal of the Security
so surrendered.

ARTICLE 12.

SINKING FUNDS

     SECTION 1201. APPLICABILITY OF ARTICLE. The provisions of this Article
shall be applicable to any sinking fund for the retirement of Securities of any
series except as otherwise specified as contemplated by Section 301 for such
Securities.

     The minimum amount of any sinking fund payment provided for by the terms
of any Securities is herein referred to as a mandatory sinking fund payment,
and any payment in excess of such minimum amount provided for by the terms of
such Securities is herein referred to as an optional sinking fund payment. If
provided for by the terms of any Securities, the cash amount of any sinking
fund payment may be subject to reduction as provided in Section 1202. Each
sinking fund payment shall be applied to the redemption of Securities as
provided for by the terms of such Securities.

     SECTION 1202. SATISFACTION OF SINKING FUND PAYMENTS WITH SECURITIES. The
Company (1) may deliver Outstanding Securities of a series (other than
any 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 any Securities of such series required to be made
pursuant to the terms of such Securities as and to the extent provided for by
the terms of such Securities; provided that the Securities to be so credited
have not been previously so credited. The Securities to be so credited shall be
received and credited for such purpose by the Trustee at the Redemption Price,
as specified in the Securities so to be redeemed, for redemption through
operation of the sinking fund and the amount of such sinking fund payment shall
be reduced accordingly.

     SECTION 1203. REDEMPTION OF SECURITIES FOR SINKING FUND. Not less than
60 days prior to each sinking fund payment date for any Securities, the Company
will deliver to the Trustee an Officers’ Certificate specifying the amount of
the next ensuing sinking fund payment for such Securities pursuant to the terms
of such Securities, 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 pursuant to Section 1202 and stating the basis for such
credit and that such Securities have not been previously so credited and will
also deliver to the Trustee any Securities to be so delivered. Not less than 30
days prior to 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 1103 and cause notice of the redemption thereof to be
given in the name of and at the expense of the Company in the manner provided
in Section

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1104. Such notice having been duly given, the redemption of such
Securities shall be made upon the terms and in the manner stated in Sections
1106 and 1107.

ARTICLE 13.

DEFEASANCE AND COVENANT DEFEASANCE

     SECTION 1301. APPLICABILITY OF ARTICLE; COMPANY’S OPTION TO ELECT
DEFEASANCE OR COVENANT DEFEASANCE. Unless otherwise provided pursuant to
Section 301, this Article 13 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
1302 (if applicable) or Section 1303 (if applicable) be applied to the
Outstanding Securities of such series upon compliance with the conditions set
forth below in this Article 13.

     SECTION 1302. DEFEASANCE AND DISCHARGE. Upon the Company’s exercise of
its option (if any) to have this Section applied to any Securities or any
series of Securities, as the case may be, the Company shall be deemed to have
been discharged from its obligations with respect to such Securities as
provided in this Section on and after the date the conditions set forth in
Section 1304 are satisfied (hereinafter called “Defeasance”). For this
purpose, such Defeasance means that the Company shall be deemed to have paid
and discharged the entire indebtedness represented by such Securities 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), subject to the following which shall survive until otherwise terminated
or discharged hereunder; (1) the rights of Holders of such Securities to
receive, solely from the trust fund described in Section 1304 and as more fully
set forth in such Section, payments in respect of the principal of and any
premium and interest on such Securities when payments are due, (2) the
Company’s obligations with respect to such Securities under Sections 304, 305,
306, 1002 and 1003, (3) the rights, powers, trusts, duties and immunities of
the Trustee hereunder, and (4) this Article. Subject to compliance with this
Article, the Company may exercise its option (if any) to have this Section
applied to any Securities notwithstanding the prior exercise of its option (if
any) to have Section 1303 applied to such Securities.

     SECTION 1303. COVENANT DEFEASANCE. Upon the Company’s exercise of its
option (if any) to have this Section applied to any Securities or any series of
Securities, as the case may be, (1) the Company shall be released from
its obligations under Sections 801, 1010 and 1011 and any other Sections
or covenants applicable to such Securities that are determined pursuant to
Section 301 to be subject to this provision, and any covenants provided
pursuant to Section 301(19), 901(2) or 901(7) for the benefit of the Holders of
such Securities, and (2) the occurrence of any event specified in Section
501(4) (with respect to Sections 801, 1010 and 1011 and any other Sections or
covenants applicable to such Securities that are determined pursuant to Section
301 to be subject to this provision, and any such covenants provided pursuant
to Sections 301(19), 901(2) or 901(7)) and 501(7) shall be deemed not to be or
result in an Event of Default, in each case with respect to such Securities as
provided in this Section on and after the date the

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conditions set forth in
Section 1304 are satisfied (hereinafter called “Covenant Defeasance”). For this
purpose, such Covenant Defeasance means that, with respect to such Securities,
the Company may omit to comply with and shall have no liability in respect of
any term, condition or limitation set forth in any such specified Section (to
the extent so specified in the case of Section 501(3)), whether directly or
indirectly by reason of any reference elsewhere herein to any such Section or
Article or by reason of any reference in any such Section or Article to any
other provision herein or in any other document, but the remainder of this
Indenture and such Securities shall be unaffected thereby.

     SECTION 1304. CONDITIONS TO DEFEASANCE OR COVENANT DEFEASANCE. The
following shall be the conditions to the application of Section 1302 or
Section 1303 to any Securities or any series of Securities, as the case may be:

     (1) The Company shall irrevocably have deposited or caused to be deposited
with the Trustee (or another trustee which satisfies the requirements
contemplated by Section 609 and agrees to comply with the provisions of this
Article applicable to it) as trust funds in trust for the purpose of making the
following payments, specifically pledged as security for, and dedicated solely
to, the benefit of the Holders of such Securities, (A) in the case of
Securities of such series denominated in U.S. dollars, (i) money in an amount,
(ii) U.S. Government Obligations that through the scheduled payment of
principal and interest in respect thereof in accordance with their terms will
provide, not later than one day before the due date of any payment, money in an
amount, or (iii) a combination thereof, in each case sufficient, 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 any such other qualifying
trustee) to pay and discharge, the principal of and any premium and interest on
such Securities on the respective Stated Maturities or on the applicable
Redemption Date or Dates, in accordance with the terms of this Indenture and
such Securities. As used herein, U.S. “Government Obligation” means (x) any
security that is (i) a direct obligation of the United States of America for
the payment of which the full faith and credit of the United States of America
is pledged or (ii) an obligation of a Person controlled or supervised by and
acting as an agency or instrumentality of the United States of America the
payment of which is unconditionally guaranteed as a full faith and credit
obligation by the United States of America, which, in either case (i) or (ii),
is not callable or redeemable at the option of the issuer thereof, and (y) any
depositary receipt issued by a bank (as defined in Section 3(a)(2) of the
Securities Act) as custodian with respect to any U.S. Government Obligation
which is specified in Clause (x) above and held by such bank for the account of
the holder of such depositary receipt, or with
respect to any specific payment of principal of or interest on any U.S.
Government Obligation which is so specified and held, 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 depositary receipt from any amount
received by the custodian in respect of the U.S. Government Obligation or the
specific payment of principal or interest evidenced by such depositary receipt
or (B) in the case of Securities of such series denominated in a currency other
than the U.S. dollar, (i) money in such currency in an amount, or (ii) Foreign
Government Obligations that through the scheduled payment of principal and
interest in respect thereof in accordance with their terms will provide, not
later than one day before the due date of any payment, money in such currency
in an amount, or (iii) a combination thereof, in each case sufficient, in the
opinion of a nationally

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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 any such other
qualifying trustee) to pay and discharge, the principal of and any premium and
interest on the Securities of such series on the respective Stated Maturities
or on the applicable Redemption Date or Dates, in accordance with the terms of
this Indenture and the Securities of such series. As used herein, “Foreign
Government Obligation” means (x) any security that is (i) a direct obligation
of the government that issued such currency for the payment of which full faith
and credit of such government is pledged or (ii) an obligation of a Person
controlled or supervised by and acting as an agency or instrumentality for such
government the payment of which is unconditionally guaranteed as a full faith
and credit obligation by such government, which, in either case (i) or (ii), is
not callable or redeemable at the option of the issuer thereof, and (y) any
depositary receipt issued by a bank (as defined in Section 3(a)(2) of the
Securities Act) as custodian with respect to any Foreign Government Obligation
which is specified in clause (x) and held by such bank for the account of the
holder of such depositary receipt, or with respect to any specific payment of
principal of or interest on any such Foreign Government Obligation which is so
specified and held, 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 depositary receipt from any amount received by the custodian in respect of
the Foreign Government Obligation or the specific payment of principal or
interest evidenced by such depositary receipt.

     (2) In the event of an election to have Section 1302 apply to any
Securities or any series of Securities, as the case may be, the Company shall
have delivered to the Trustee an Opinion of Counsel stating that (A) the
Company has received from, or there has been published by, the Internal Revenue
Service a ruling or (B) since the date of this instrument, there has been a
change in the applicable Federal income tax law, in either case (A) or (B) to
the effect that, and based thereon such opinion shall confirm that, the Holders
of such Securities will not recognize gain or loss for Federal income tax
purposes as a result of the deposit, Defeasance and discharge to be effected
with respect to such Securities and will be subject to Federal income tax on
the same amount, in the same manner and at the same times as would be the case
if such deposit, Defeasance and discharge were not to occur.

     (3) In the event of an election to have Section 1303 apply to any
Securities or any series of Securities, as the case may be, the Company shall
have delivered to the Trustee an Opinion of Counsel to the effect that the
Holders of such Securities will not recognize gain or loss for Federal income
tax purposes as a result of the deposit and Covenant Defeasance to be
effected with respect to such Securities and will be subject to Federal income
tax on the same amount, in the same manner and at the same times as would be
the case if such deposit and Covenant Defeasance were not to occur.

     (4) The Company shall have delivered to the Trustee an Officer’s
Certificate to the effect that neither such Securities nor any other Securities
of the same series, if then listed on any securities exchange, will be delisted
as a result of such deposit.

     (5) No event which is, or after notice or lapse of time or both would
become, an Event of Default with respect to such Securities shall have occurred
and be continuing at the time

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of such deposit or, with regard to any such event
specified in Sections 501(5) and (6) at any time on or prior to the 90th day
after the date of such deposit (it being understood that this condition shall
not be deemed satisfied until after such 90th day).

     (6) Such Defeasance or Covenant Defeasance shall not cause the Trustee to
have a conflicting interest within the meaning of the Trust Indenture Act
(assuming all Securities are in default within the meaning of such Act).

     (7) Such 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.

     (8) Such Defeasance or Covenant Defeasance shall not result in the trust
arising from such deposit constituting an investment company within the meaning
of the Investment Company Act unless such trust shall be registered under such
Act or exempt from registration thereunder.

     (9) If the Securities are to be redeemed prior to the Stated Maturity
(other than from mandatory sinking fund payments or analogous payments), notice
of such redemption shall have been duly given pursuant to this Indenture or
provision therefor satisfactory to the Trustee shall have been made.

     (10) The Company shall have delivered to the Trustee an Officers’
Certificate and an Opinion of Counsel, each stating that all conditions
precedent with respect to such Defeasance or Covenant Defeasance have been
complied with.

     SECTION 1305. DEPOSITED MONEY AND U.S. GOVERNMENT OBLIGATIONS TO BE HELD
IN TRUST; MISCELLANEOUS PROVISIONS. Subject to the provisions of the last
paragraph of Section 1003, all money and U.S. Government Obligations or Foreign
Government Obligations (including the proceeds thereof) deposited with the
Trustee or other qualifying trustee (solely for purposes of this Section and
Section 1306, the Trustee and any such other trustee are referred to
collectively as the Trustee) pursuant to Section 1304 in respect of any
Securities 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 such 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 any premium and
interest, but money so held in trust 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 U.S. Government Obligations or
Foreign Government Obligations deposited pursuant to Section 1304 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 Outstanding
Securities.

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     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 U.S. Government Obligations or Foreign Government Obligations held by
it as provided in Section 1304 with respect to any Securities that, 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 an amount thereof which would then be required to be deposited to
effect the Defeasance or Covenant Defeasance, as the case may be, with respect
to such Securities.

     SECTION 1306. REINSTATEMENT. If the Trustee or the Paying Agent is
unable to apply any money 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 1302 or 1303 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 held in trust pursuant to Section
1305 with respect to such Securities in accordance with this Article; provided,
however, that 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 so held in
trust.

     SECTION 1307. QUALIFYING TRUSTEE. Any trustee appointed pursuant to
Section 1304 hereof for the purpose of holding trust funds deposited pursuant
to that Section shall be appointed under an agreement in form acceptable to the
Trustee and shall provide to the Trustee a certificate of such trustee, upon
which certificate the Trustee shall be entitled to conclusively rely, that all
conditions precedent provided for herein to the related Defeasance or Covenant
Defeasance have been complied with. In no event shall the Trustee be liable for
any acts or omissions of said trustee.

ARTICLE 14.

GUARANTEES

     SECTION 1401. APPLICABILITY OF ARTICLE. The provisions of this Article
shall be applicable to the Guarantor for the Guarantee of Securities of a
series.

     SECTION 1402. GUARANTEE. The Guarantor of a particular series of
Securities hereby unconditionally guarantees (each such guarantee to be
referred to herein as a “Guarantee”), jointly and severally with each other
Guarantor of the Securities of that series, if any, to each Holder of such
Securities authenticated and delivered by the Trustee and to the Trustee and
its successors and assigns, irrespective of the validity and enforceability of
this Indenture, such Securities or the obligations of the Company hereunder or
thereunder, (i) the due and punctual payment of the principal of and any
premium or interest on such Securities, whether at maturity or on an interest
payment date, by acceleration, pursuant to an offer to purchase such Securities
or otherwise, and interest on the overdue principal of and interest, if any, on
such Securities, if lawful, and all other obligations of the Company to the
Holders of

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such Securities or the Trustee hereunder or thereunder shall be
promptly paid in full, all in accordance with the terms hereof and thereof
including all amounts payable to the Trustee under Section 607 hereof, and (ii)
in case of any extension of time of payment or renewal of any such Securities
or any of such other obligations, the same shall be promptly paid in full when
due or to be performed in accordance with the terms of the extension or
renewal, whether at stated maturity, by acceleration or otherwise.

     If the Company fails to make any payment when due of any amount so
guaranteed for whatever reason, the Guarantor of the Securities of that series
shall be obligated, jointly and severally with each other Guarantor, if any, to
pay the same immediately. The Guarantor hereby agrees that its obligations
hereunder shall be continuing, absolute and unconditional, irrespective of, and
shall be unaffected by, the validity, regularity or enforceability of the
Securities, this Indenture, the absence of any action to enforce the same, any
waiver or consent by any Holder of the Securities or the Trustee with respect
to any provisions hereof or thereof, the recovery of any judgment against the
Company, any action to enforce the same or any other circumstance which might
otherwise constitute a legal or equitable discharge or defense of the
Guarantor. The Guarantor hereby waives diligence, presentment, demand of
payment, demand of performance, filing of claims with a court in the event of
insolvency or bankruptcy of the Company, any right to require a proceeding
first against the Company, the benefit of discussion, protest, notice and all
demand whatsoever and covenants that its Guarantee shall not be discharged
except by complete performance of the obligations contained in the Securities
guaranteed by such Guarantee, in this Indenture and in this Article 14. If any
Holder of Securities of a series guaranteed hereby or the Trustee is required
by any court or otherwise to return to the Company or the Guarantor of such
Securities, or any custodian, trustee, liquidator or other similar official
acting in relation to the Company or the Guarantor, any amount paid by the
Company or the Guarantor of such Securities to the Trustee or such Holder, this
Article 14, to the extent theretofore discharged with respect to any Guarantee
of such Securities, shall be reinstated in full force and effect. The
Guarantor agrees that it shall not be entitled to any right of subrogation in
relation to the Holders of Securities of a series guaranteed hereby by the
Guarantor in respect of any obligations guaranteed hereby by such Guarantee
until payment in full of all such obligations. The Guarantor further agrees
that, as between the Guarantor, on the one hand, and the Holders of Securities
of a series guaranteed hereby by the Guarantor and the Trustee on the other
hand, (i) the maturity of the obligations guaranteed hereby may be accelerated
as provided in Article 5 hereof for the purposes of such Guarantee,
notwithstanding any stay, injunction or other prohibition preventing such
acceleration in respect of the obligations guaranteed hereby
and (ii) in the event of any acceleration of such obligations as provided
in Article 5 hereof such obligations (whether or not due and payable) shall
forthwith become due and payable by the Guarantor, jointly and severally with
any other Guarantor of such Securities, for the purpose of this Article 14. In
addition, without limiting the foregoing, upon the effectiveness of an
acceleration under Article 5, the Trustee may make a demand for payment on the
Securities under any Guarantee provided hereunder and not discharged.

     With respect to each Guarantee by the Guarantor, the Guarantor shall be
subrogated to all rights of the Holder of any Securities guaranteed hereby by
such Guarantee against the Company in respect of any amounts paid to such
Holder by the Guarantor pursuant to the provisions of such Guarantee; provided
that the Guarantor shall not be entitled to enforce, or to receive any

65

 

payments
arising out of or based upon, such right of subrogation until the principal of
and interest on all such Securities shall have been paid in full.

     The Guarantee set forth in this Section 1402 shall not be valid or become
obligatory for any purpose with respect to a Security until the certificate of
authentication on such Security shall have been signed by the Trustee or any
duly appointed agent.

     The Guarantees provided in this Section 1402 shall not be valid or become
obligatory for any purpose with respect to a Security until the certificate of
authentication on such Security shall have been signed by the Trustee or any
duly appointed agent.

     SECTION 1403. OBLIGATIONS OF THE GUARANTOR UNCONDITIONAL. Nothing
contained in this Article 14 or elsewhere in this Indenture or in any Security
is intended to or shall impair, as between the Guarantor and the Holders of the
Securities guaranteed by the Guarantor’s Guarantee, the obligations of the
Guarantor, which are absolute and unconditional, to pay to such Holders the
principal of and interest on, as and when the same shall become due and payable
in accordance with the provisions of this Guarantee or is intended to or shall
affect the relative rights of such Holders and creditors of the Guarantor, nor
shall anything herein or therein prevent the Trustee or such Holder from
exercising all remedies otherwise permitted by applicable law upon Default
under this Indenture in respect of cash, property or securities of the
Guarantor received upon the exercise of any such remedy.

     Upon any distribution of assets of the Guarantor referred to in this
Article 14, the Trustee, subject to the provisions of Sections 601 and 602, and
the Holders of the Securities guaranteed hereby by the Guarantor shall be
entitled to rely upon any order or decree made by any court of competent
jurisdiction in which such dissolution, winding up, liquidation or
reorganization proceedings are pending, or a certificate of the liquidating
trustee or agent or other person making any distribution to the Trustee or to
such Holders, for the purpose of ascertaining the persons entitled to
participate in such distribution, the holders of other indebtedness of the
Guarantor, the amount thereof or payable thereon, the amount or amounts paid or
distributed thereon and all other facts pertinent thereto or to this Article
14.

     SECTION 1404. ARTICLE 14 NOT TO PREVENT EVENTS OF DEFAULT. The failure
to make a payment on account of principal or interest on the Securities of any
series by reason of any provision in this Article 14 shall not be construed as
preventing the occurrence of an Event of Default under Section 501.

     SECTION 1405. EXECUTION AND DELIVERY OF GUARANTEE. To evidence a
Guarantee set forth in this Article 14, the Guarantor hereby agrees that the
Guarantee Notation, substantially in the form of Exhibit A hereto, shall be
endorsed on each Security authenticated and delivered by the Trustee that is
guaranteed by such Guarantee and that this Indenture shall be executed on
behalf of the Guarantor by its Chairman of the Board, its Chief Executive
Officer, its President or one of its Vice Presidents under a facsimile of its
seal reproduced thereon.

     The Guarantor hereby agrees that its Guarantee shall remain in full force
and effect notwithstanding any failure to endorse the Guarantee Notation on
each such Security.

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     If an officer whose signature is on this Indenture or on the Securities
guaranteed hereby no longer holds that office at the time the Trustee
authenticates the Security on which a notation of the Guarantee is endorsed,
such Guarantee shall be valid nevertheless.

     The delivery of any Security by the Trustee, after the authentication
thereof hereunder, shall constitute due delivery of each Guarantee thereof.

     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.

67

 

     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.

	 	 	 	 	 	 	 
	

	 	By:	 	 	 	 
	

	 	 	 	
	 	 
	

	 	 	 	[name]	 	 
	

	 	 	 	[title]	 	 
	 
	 	 	 	 	 	 
	ATTEST:	 	
	 	 
	

	 	[name]	 	 	 	 
	

	 	[title]	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	 	 	, as Trustee
	 
	 	 	 	 	 	 
	

	 	By:	 	 	 	 
	

	 	 	 	
	 	 
	

	 	 	 	[name]	 	 
	

	 	 	 	[title]	 	 
	 
	 	 	 	 	 	 
	ATTEST:	 	
	 	 
	

	 	[name]	 	 	 	 
	

	 	[title]	 	 	 	 

68

 

EXHIBIT A

[FORM OF NOTATION OF SECURITY

RELATING TO GUARANTEE]

GUARANTEE

     [Name of Guarantor] (hereinafter referred to as the “Guarantor,” which
term includes any successor person under the Indenture (the “Indenture”)
referred to in the Security upon which this notation is endorsed) (the
“Endorsed Security”), has unconditionally guaranteed (i) the due and punctual
payment of the principal of, premium, if any, and interest on the Endorsed
Security and all other Securities of the same series as the Endorsed Security
(the “Guaranteed Securities”), whether at maturity, by acceleration or
otherwise, the due and punctual payment of interest on the overdue principal
of, premium, if any, and interest, if any, on the Guaranteed Securities, to the
extent lawful, and the due and punctual performance of all other obligations of
the Company to the Holders of Guaranteed Securities or the Trustee all in
accordance with the terms set forth in Article 14 of the Indenture and (ii) in
case of any extension of time of payment or renewal of any Guaranteed
Securities or any of such other obligations, that the same will be promptly
paid in full when due or performed in accordance with the terms of the
extension or renewal, whether at stated maturity, by acceleration or otherwise.
Capitalized terms not otherwise defined herein shall have the meanings
ascribed thereto in the Indenture.

     The obligations of the Guarantor to the Holders of Guaranteed Securities
and to the Trustee pursuant to the Guarantee evidenced hereby and the Indenture
are expressly set forth in Article 14 of the Indenture and reference is hereby
made to such Indenture for the terms of such Guarantee.

     No stockholder, officer, director or incorporator, as such, past, present
or future, of the Guarantor shall have any personal liability under the
Guarantee evidenced hereby by reason of his or its status as such stockholder,
officer, director or incorporator.

     The Guarantee evidenced hereby shall not be valid or obligatory for any
purpose until the certificate of authentication of the Guaranteed Securities
shall have been executed by the Trustee under the Indenture by the manual
signature of one of its authorized officers.

	 	 	 	 	 
	 	 	Guarantor
	 
	 	 	 	 
	 	 	[SEAL]
	 
	 	 	 	 
	 	 	[NAME OF GUARANTOR]
	 
	 	 	 	 
	

	 	By:	 	 
	

	 	 	 	
 
	 
	 	 	 	 
	

	 	By:

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