Document:

Form of Indenture

EXHIBIT 4.6

TOYOTA MOTOR CREDIT CORPORATION 

AND 

AS TRUSTEE 

FORM OF 

INDENTURE 

DATED AS OF [_________]

$[________]

TMCC DEMAND NOTES 

CROSS-REFERENCE TABLE 

(Not a part of this Indenture)

			
	TIA

SECTION

	 
	INDENTURE SECTION

	ss.310

	(a)(1)

	7.10

	 
	(a) (2)

	7.10

	 
	(a) (3)

	N.A.

	 
	(a) (4)

	N.A.

	 
	(a) (5)

	7.10

	 
	(b)

	7.08

	 
	 
	7.10

	 
	 
	11.02

	 
	 
	 

	 
	(c)

	N.A.

	ss.311

	(a)

	7.11

	 
	(b)

	7.11

	 
	(c)

	N.A.

	ss.312

	(a)

	2.05

	 
	(b)

	11.03

	 
	(c)

	11.03

	ss.313

	(a)

	7.06

	 
	(b) (1)

	N.A.

	 
	(b) (2)

	7.06 

	 
	(c)

	7.06

	 
	 
	11.02

	 
	(d)

	7.06

	ss.314

	(a)

	4.09

	 
	 
	4.10

	 
	 
	11.02

	 
	(b)

	N.A.

	 
	 
	11.02

	 
	(c) (1).

	11.04

	 
	(c) (2)

	11.04  

	 
	(c) (3)

	4.09 (c) 

	 
	(d)

	N.A.

	 
	(e)

	11.05

	 
	(f)

	N.A.

	ss.315  

	(a)

	7.01(b)

	 
	(b)

	7.05

	 
	(c)

	7.01(a)

	 
	(d)

	7.01 (c )

	 
	(e)

	6.11

	ss.316

	(a) (last sentence)

	2.09

	 
	(a) (1) (A)

	6.05

	 
	(a) (1) (A)

	6.04

	 
	(a) (2)

	N.A.

	 
	(b)

	6.07

	 
	(c)

	6.07

	ss.317

	(a) (1)

	9.04

	 
	(a) (2)

	6.08

	 
	(b)

	2.04

	ss.318

	(a)

	11.01

	 
	 
	 

	N.A. means not applicable

	 

ARTICLE I.

DEFINITIONS AND INCORPORATION BY REFERENCE.

1

SECTION 1.01.

DEFINITIONS.

1

SECTION 1.02.

INCORPORATION BY REFERENCE OF TIA.

1

SECTION 1.03.

RULES OF CONSTRUCTION.

2

ARTICLE II.

THE SECURITIES.

2

SECTION 2.01.

FORM; TITLE AND TERMS.

2

SECTION 2.02.

EXECUTION AND AUTHENTICATION.

3

SECTION 2.03.

SECURITIES REGISTER.

4

SECTION 2.04.

PAYING AGENT TO HOLD MONEY IN TRUST.

5

SECTION 2.05.

HOLDER LISTS.

5

SECTION 2.06.

TRANSFER AND EXCHANGE.

5

SECTION 2.07.

REPLACEMENT SECURITIES.

6

SECTION 2.08.

OUTSTANDING SECURITIES.

6

SECTION 2.09.

SECURITIES NOT OUTSTANDING.

7

SECTION 2.10.

RESERVED.

7

SECTION 2.11.

CANCELLATION.

7

SECTION 2.12.

DEFAULTED INTEREST.

8

SECTION 2.13.

PERSONS DEEMED OWNERS.

9

SECTION 2.14.

COMPUTATION OF INTEREST.

9

ARTICLE III.

REDEMPTION.

9

SECTION 3.01.

REDEMPTION.

9

ARTICLE IV.

COVENANTS.

9

SECTION 4.01.

PAYMENT OF SECURITIES.

9

SECTION 4.02.

MAINTENANCE OF OFFICE OR AGENCY; PAYING AGENT 

AND REGISTRAR.

10

SECTION 4.03.

COMPANY STATEMENT AS TO COMPLIANCE; NOTICE OF

 CERTAIN DEFAULTS.

10

ARTICLE V.

CONSOLIDATIONS AND MERGERS, ETC.

11

SECTION 5.01.

COMPANY MAY CONSOLIDATE, ETC., ONLY ON 

CERTAIN TERMS.

11

SECTION 5.02.

SUCCESSOR PERSON SUBSTITUTED FOR COMPANY.

12

ARTICLE VI.

DEFAULT AND REMEDIES.

12

SECTION 6.01.

EVENTS OF DEFAULT.

12

SECTION 6.02.

ACCELERATION OF MATURITY; RESCISSION AND 

ANNULMENT.

12

SECTION 6.03.

COLLECTION OF INDEBTEDNESS AND SUITS FOR 

ENFORCEMENT BY TRUSTEE.

13

SECTION 6.04.

TRUSTEE MAY FILE PROOFS OF CLAIM.

14

SECTION 6.05.

TRUSTEE MAY ENFORCE CLAIMS WITHOUT POSSESSION 

OF SECURITIES.

15

SECTION 6.06.

APPLICATION OF MONEY COLLECTED.

15

SECTION 6.07.

LIMITATION ON SUITS.

15

SECTION 6.08.

UNCONDITIONAL RIGHT OF HOLDERS TO RECEIVE 

PRINCIPAL AND INTEREST.

16

SECTION 6.09.

RESTORATION OF RIGHTS AND REMEDIES.

16

SECTION 6.10.

RIGHTS AND REMEDIES CUMULATIVE.

16

SECTION 6.11.

DELAY OR OMISSION NOT WAIVER.

17

SECTION 6.12.

CONTROL BY HOLDERS OF SECURITIES.

17

SECTION 6.13.

WAIVER OF PAST DEFAULTS.

17

SECTION 6.14.

UNDERTAKING FOR COSTS.

18

ARTICLE VII.

TRUSTEE.

18

SECTION 7.01.

DUTIES OF TRUSTEE.

18

SECTION 7.02.

RIGHTS OF TRUSTEE.

19

SECTION 7.03.

INDIVIDUAL RIGHTS OF TRUSTEE.

20

SECTION 7.04.

TRUSTEE’S DISCLAIMER.

20

SECTION 7.05.

NOTICE OF DEFAULTS.

20

SECTION 7.06.

REPORTS BY TRUSTEE TO HOLDERS.

20

SECTION 7.07.

COMPENSATION AND INDEMNITY.

21

SECTION 7.08.

REPLACEMENT OF TRUSTEE.

21

SECTION 7.09.

SUCCESSOR TRUSTEE BY MERGER, ETC.

23

SECTION 7.10.

ELIGIBILITY; DISQUALIFICATION.

23

SECTION 7.11.

PREFERENTIAL COLLECTION OF CLAIMS AGAINST 

COMPANY.

23

ARTICLE VIII.

DEFEASANCE; SATISFACTION AND DISCHARGE.

23

SECTION 8.01.

DEFEASANCE OF THE INDENTURE.

23

SECTION 8.02.

SATISFACTION AND DISCHARGE OF THE INDENTURE.

24

SECTION 8.03.

SURVIVAL OF CERTAIN OBLIGATIONS.

25

SECTION 8.04.

ACKNOWLEDGMENT OF DISCHARGE BY TRUSTEE.

25

SECTION 8.05.

APPLICATION OF TRUST MONEY.

25

SECTION 8.06.

REPAYMENT TO THE COMPANY.

26

SECTION 8.07.

REINSTATEMENT.

26

ARTICLE IX.

AMENDMENTS, SUPPLEMENTS AND WAIVERS.

26

SECTION 9.01.

WITHOUT CONSENT OF HOLDERS.

26

SECTION 9.02.

WITH CONSENT OF HOLDERS.

27

SECTION 9.03.

COMPLIANCE WITH TIA.

28

SECTION 9.04.

REVOCATION AND EFFECT OF CONSENTS.

28

SECTION 9.05.

NOTATION ON OR EXCHANGE OF SECURITIES.

29

SECTION 9.06.

TRUSTEE TO SIGN AMENDMENTS, ETC.

29

SECTION 9.07.

EFFECT OF SUPPLEMENTAL INDENTURES.

29

ARTICLE X.

MEETINGS OF AND ACTIONS BY HOLDERS.

30

SECTION 10.01.

PURPOSES FOR WHICH MEETINGS MAY BE CALLED.

30

SECTION 10.02.

MANNER OF CALLING MEETINGS.

30

SECTION 10.03.

CALL OF MEETINGS BY COMPANY OR HOLDERS.

31

SECTION 10.04.

WHO MAY ATTEND AND VOTE AT MEETINGS.

31

SECTION 10.05.

REGULATIONS MAY BE MADE BY TRUSTEE; CONDUCT 

OF THE MEETING; VOTING RIGHTS; ADJOURNMENT.

31

SECTION 10.06.

VOTING AT THE MEETING AND RECORD TO BE KEPT.

32

SECTION 10.07.

EXERCISE OF RIGHTS OF TRUSTEE OR HOLDERS MAY 

NOT BE HINDERED OR DELAYED BY CALL OF MEETING.

32

SECTION 10.08.

EVIDENCE OF ACTION TAKEN BY HOLDERS.

32

SECTION 10.09.

PROOF OF EXECUTION OF INSTRUMENTS AND OF 

HOLDING OF SECURITIES.

33

SECTION 10.10.

RIGHT OF REVOCATION OF ACTION TAKEN.

33

ARTICLE XI.

MISCELLANEOUS.

34

SECTION 11.01.

TIA CONTROLS.

34

SECTION 11.02.

NOTICES.

34

SECTION 11.03.

COMMUNICATIONS BY HOLDERS WITH OTHER 

HOLDERS.

35

SECTION 11.04.

CERTIFICATE AND OPINION AS TO CONDITIONS 

PRECEDENT.

35

SECTION 11.05.

STATEMENTS REQUIRED IN CERTIFICATE OR OPINION.

35

SECTION 11.06.

RULES BY TRUSTEE, PAYING AGENT, REGISTRAR.

36

SECTION 11.07.

LEGAL HOLIDAYS.

36

SECTION 11.08.

GOVERNING LAW.

36

SECTION 11.09.

NO ADVERSE INTERPRETATION OF OTHER 

AGREEMENTS.

36

SECTION 11.10.

NO RECOURSE AGAINST OTHERS.

36

SECTION 11.11.

SUCCESSORS.

37

SECTION 11.12.

DUPLICATE ORIGINALS.

37

SECTION 11.13.

SEVERABILITY.

37

SECTION 11.14.

HEADINGS AND TABLE OF CONTENTS.

37

		
	ANNEX I. DEFINITIONS 

	I-1

	EXHIBIT A. FORM OF SECURITY 

	A-1

	EXHIBIT B FORM OF DEMAND 

	B-1

	 
	 

INDENTURE dated as of [____________], between Toyota Motor Credit Corporation, a California corporation (the “Company”), and [_____________], as trustee (the “Trustee”).

RECITALS  

A.

The Company is duly authorized to execute and deliver this Indenture and to provide for the issuance by the Company of the Securities as provided herein.

B.

All things have been done that are necessary to make the Securities, when executed by the Company and authenticated and delivered by the Trustee hereunder, the valid and binding legal obligations of the Company in accordance with the terms of this Indenture.

C.

For and in consideration of the premises and the purchase of the Securities by the Holders, each party hereto agrees as follows for the benefit of each other party and for the equal and ratable benefit of the Holders.

ARTICLE I.

DEFINITIONS AND INCORPORATION BY REFERENCE.

SECTION 1.01.

DEFINITIONS.  

All capitalized terms used in this Indenture and not defined elsewhere herein shall have the meanings assigned to them in Annex I, which is hereby incorporated by reference in and made a part of this Indenture.

SECTION 1.02.

INCORPORATION BY REFERENCE OF TIA.  

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

“Commission” means the Securities and Exchange Commission.

“Indenture Securities” means the Securities.

“Indenture Security Holder” means a Holder or a Securityholder.

“Indenture to be Qualified” means this Indenture.

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

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

All other TIA terms used in this Indenture that are defined by the TIA, defined by TIA reference to another statute or defined by Commission rule and not otherwise defined herein have the meanings assigned to them therein.

SECTION 1.03.

RULES OF CONSTRUCTION.  

Unless the context otherwise requires:

(1)

a term has the meaning assigned to it;

(2)

unless otherwise expressly provided in this Indenture, an accounting term not otherwise defined has the meaning assigned to it in accordance with GAAP and all financial computations required under this Indenture shall be made in accordance with GAAP;

(3)

“or” is not exclusive;

(4)

words in the singular include the plural, and words in the plural include the singular;

(5)

provisions apply to successive events and transactions;

(6)

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

(7)

“including” shall be deemed to mean “including, without limitation”.

ARTICLE II.

THE SECURITIES.

SECTION 2.01.

FORM; TITLE AND TERMS.

The Securities and the Trustee’s certificate of authentication thereon shall be substantially in the forms set forth in Exhibit A hereto.  The Securities may have notations, legends or endorsements required by law or stock exchange rules.  Each Security shall be dated the date of its authentication.

The terms and provisions contained in the Securities shall constitute a part of, and are hereby incorporated by reference in and made a part of, this Indenture and to the extent applicable, the Company and the Trustee, by their execution and delivery of this Indenture, expressly agree to their incorporation herein.

The Securities shall be known and designated as the “TMCC Demand Notes” of the Company. The aggregate original principal amount of Securities that may be authenticated and delivered under this Indenture is limited to $ , except as otherwise provided in Sections 2.06, 2.07 and 9.05. References herein and in the forms of Securities to “Security” or “Securities” shall include references to the principal amounts issued thereunder as evidenced by the appropriate notation on the Schedules.

The Securities shall be issuable only in registered form, without coupons. The minimum denominations of the Securities will be $0.01.

Interest on the Securities which is payable, and is punctually paid or duly provided for, on any Interest Payment Date, shall, except as otherwise provided in Section 2.12, be paid to the Persons in whose names the Securities (or one or more Predecessor Securities) are registered at the close of business on the Record Date next preceding such Interest Payment Date. At the option of the Company, payment of interest on the Securities due on any Interest Payment Date, falling after a Record Date for the payment of interest on the Securities and on or before the related Interest Payment Date, shall be paid by wire transfer to an account specified by the Person entitled thereto as proven by the names appearing in the Securities register.

SECTION 2.02.

EXECUTION AND AUTHENTICATION.

The Securities shall be executed on behalf of the Company by an Officer of the Company.  Any such signature may be by facsimile.

If an Officer whose signature is on a Security no longer holds that office at the time the Trustee authenticates the Security, the Security shall be valid nevertheless.

All of the Securities to be issued under this Indenture, and all of the principal amounts to be evidenced by the Securities need not be issued at the same time and may be issued from time to time at the order of the Company as herein provided for. The Securities and the principal amount in respect of the Securities to be issued hereunder shall all be of the same series known as the “TMCC Demand Notes”, but need not have the same issue date, Stated Maturity Date, Required Rate, or Interest Payment Date. It is envisioned that [________] certificates representing potential investments related to the Securities shall be issued hereunder and carry principal balances which will correspond to amounts actually on deposit in the [specify relevant Noteholders’ or Certificateholders’ Account] in respect of the following amounts: (1) one certificate representing amounts allocated as [specify relevant Interest Distributable Amounts], [specify relevant Interest Carryover Shortfall Amounts], (the “Interest Demand Note”) in a maximum aggregate principal amount equal to $[________]; (2) one certificate representing amounts allocated to make applications in reduction of the Outstanding Amount of the [specify relevant Classes of Notes or Certificates] in a maximum aggregate principal amount equal to $[________]; in a maximum principal amount equal to $[________]; provided that nothing herein shall limit the number of certificates representing the Securities that may be issued hereunder. Each certificate representing a Security will have a Schedule attached thereto indicating: (i) the amount of the increase in the principal amount outstanding under such Security and the date on which each principal amount under such Security was first issued, (ii) the Stated Maturity Date for such principal amount, (iii) the Required Rate applicable to such principal amount, (iv) the amount of the decrease in the principal amount outstanding under such Security and the date on which such principal amount under such Security was paid, (v) the  2 amount of the interest paid on such Security and the date on which such interest was paid and (vi) the aggregate principal amount outstanding with respect to such certificate representing a Security.

A Security shall not be valid until the Trustee manually signs the certificate of authentication on the Security.  Entries on the Schedule to any such Security shall not be valid until the Trustee manually signs the space provided for such entry as authentication of such increase or decrease in outstanding principal amount of such Security.  Such signature shall be conclusive evidence that the Security and such entry has been authenticated under this Indenture.

The Trustee shall authenticate Securities for original issue in any amount not to exceed the maximum aggregate principal amount as aforesaid, upon a written order of the Company signed by an Officer of the Company.  The Trustee shall annotate and initial the Schedule attached to a Security to indicate the issuance of an additional principal amount of the Securities, upon either (i) a written order of the Company signed by an Officer of the Company, or (ii) if an Officer’s Certificate has previously been delivered to the Trustee by the Company specifying the names and titles of officers, employees or agents of the Company eligible to give such an order, the order of any such officer, employee or agent of the Company, which order may be by facsimile (promptly confirmed in writing). Any such order shall specify the principal amount in respect of the Securities to be issued and to which certificate such amount shall be allocable, the applicable Required Rate, the Stated Maturity Date and the date on which such issue of principal in respect of the Securities is to be authenticated.

The Trustee may appoint an authenticating agent acceptable to the Company to authenticate Securities and the Schedules attached thereto.  Unless otherwise provided in the appointment, an authenticating agent may authenticate Securities and the Schedules attached thereto whenever the Trustee may do so.

Each reference in this Indenture to authentication by the Trustee includes authentication by such agent.  An authenticating agent has the same rights as an Agent to deal with the Company or an Affiliate of the Company.  The Trustee is initially appointed as the authentication agent by the Company.

Notwithstanding the foregoing, in lieu of annotating the related Schedule and initializing such entries, the Trustee may instead provide a written confirmation to the Company of its receipt of and compliance with any [Company Order] and of its receipt of each payment made by the Company in respect of any principal amount of any Security or interest on any principal amount of any Securities, which alternative written confirmations shall be deemed to be conclusive evidence that the Trustee has received any such [Company Order] or payment from the Company, in each case with the same force and effect as if the Schedule had in fact been annotated and initialed as described above; provided that the Company shall not be obligated to make any payment at the Maturity of any Security unless and until the Trustee delivers to the Company the related Schedule annotated with entries corresponding to each such alternative confirmation and having each such annotation authenticated as described above.

SECTION 2.03.

SECURITIES REGISTER.  

The Company shall keep or cause to be kept at the Corporate Trust Office or at any office or agency of the Company where Securities may be presented for registration of transfer or for exchange as provided in Section 4.02 a register in which, subject to such reasonable regulations as the Company may prescribe, the Company shall provide for the registration of Securities and registration of transfers and exchanges of Securities as in this Article provided.  The Registrar appointed pursuant to Section 4.02 shall keep the register of the Securities and of their transfer and exchange.

SECTION 2.04.

PAYING AGENT TO HOLD MONEY IN TRUST.  

Each Paying Agent appointed pursuant to Section 4.02 shall hold in trust for the benefit of the Persons entitled thereto, without interest, all money held by such Paying Agent for the payment of principal and interest on the Securities (whether such money has been paid to it by the Company or any other obligor on the Securities), and shall notify the Trustee in writing of any Default by the Company (or any other obligor on the Securities) in making any such payment.  If the Company or a Subsidiary of the Company acts as Paying Agent, it shall segregate the money and hold it as a separate trust fund.  The Company at any time may require a Paying Agent to pay all money held by it to the Trustee and account for any funds disbursed and the Trustee may at any time during the continuance of any payment Default, upon written request to a Paying Agent, require such Paying Agent to pay all money held by it to the Trustee and to account for any funds disbursed.  Upon payment of all funds held by it to the Trustee, the Paying Agent shall have no further liability for such money.  As provided in Section 6.04 hereof, in any bankruptcy, insolvency, reorganization or other similar proceeding relative to the Company or any other obligor on the Securities, the Trustee shall serve as Paying Agent for the Securities; provided that the foregoing shall not relieve the Company of its obligations under Section 4.02.

SECTION 2.05.

HOLDER LISTS.

The Trustee shall preserve in as current a form as is reasonably practicable the most recent list of the names and addresses of the Holders furnished to it or maintained by it in its capacity as Registrar.  If and so long as the Trustee is not the Registrar, in accordance with Section 312(a) of the TIA, the Company shall furnish or cause to be furnished to the Trustee semiannually not less than 30 days nor more than 60 days before each Interest Payment Date and at such times as the Trustee may request in writing a list in such form and as of such date as the Trustee may reasonably require of the names and addresses of Holders including an identification of the Securities and the aggregate amount thereof.

SECTION 2.06.

TRANSFER AND EXCHANGE.

(a)

The Trustee will not authenticate or deliver any Security in connection with any registration of transfer to any person unless the Trustee has received a certification from the transferring Holder to the effect that (i) it is no longer the Owner Trustee of the Toyota Auto Receivables Owner Trust and the proposed transferee is its successor in such capacity, or (ii) a Swap Termination has occurred and such proposed transfer is made in contemplation of a liquidation of the trust assets. Each certificate shall bear a legend containing the foregoing transfer restrictions.

(b)

When Securities are presented to the Registrar or a co-Registrar with a written request satisfying the requirements of clause (a) to register the transfer of such Securities or to exchange such Securities for an equal principal amount of Securities in other authorized denominations, the Registrar or co-Registrar shall register the transfer or make the exchange if its reasonable requirements for such transactions (which may include a requirement that any Security presented or surrendered for registration of transfer or exchange shall be duly endorsed or accompanied by a written instrument of transfer in form satisfactory to the Registrar and the Trustee duly executed by the Holder thereof or his attorney duly authorized in writing) are met. To permit registration of transfers and exchanges as provided herein, the Company shall execute and the Trustee shall authenticate and deliver Securities at the Registrar’s or a co-Registrar’s written request. 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 entitling the Holders thereof to the same benefits under this Indenture as the Securities surrendered upon such registration of transfer or exchange.  No service charge shall be made to a Holder for any registration of transfer or exchange, but the Company may require payment of a sum sufficient to cover any transfer tax or similar governmental charge payable in connection therewith, other than in the case of exchanges under Section 9.05 hereof not involving any transfer.

SECTION 2.07.

REPLACEMENT SECURITIES.

If a defaced or mutilated Security is surrendered to the Trustee or if the Holder of a Security presents evidence to the reasonable satisfaction of the Trustee that the Security has been lost, destroyed or stolen the Company shall execute and the Trustee shall authenticate a replacement Security if the Company’s and the Trustee’s reasonable requirements are met.  The Trustee or the Company may require an indemnity bond or other security, sufficient in the reasonable judgment of both the Company and the Trustee, to protect the Company, the Trustee or any Agent from any loss which any of them may suffer if a Security is replaced.  The Company and the Trustee may charge such Holder for their reasonable expenses in replacing a Security.

Every replacement Security is an additional obligation of the Company, whether or not the apparently destroyed, lost or stolen Security shall be at any time enforceable by anyone, and such replacement Security shall be entitled to the benefits of and subject to the limitations of rights set forth in this Indenture.

The provisions of this Section, as amended or supplemented pursuant to this Indenture with respect to particular Securities or generally, shall be 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 2.08.

OUTSTANDING SECURITIES.

Securities outstanding at any time under this Indenture are all Securities that have been theretofore authenticated and delivered under this Indenture, except (a) those canceled by the Trustee, (b) those delivered to the Trustee for cancellation, (c) those in exchange for or in lieu of which other Securities have been authenticated and delivered under this Indenture and (d) those described in this Section as not outstanding.

Except as provided in Section 2.09 hereof, a Security does not cease to be outstanding because the Company or any other obligor upon the Securities or any Affiliate of the Company or of such other obligor holds the Security.

If a Security is replaced pursuant to Section 2.07 hereof, it ceases to be outstanding unless the Trustee receives proof satisfactory to it that the replaced Security is held by a bona fide purchaser.

If on the Stated Maturity Date of any Securities, the Paying Agent (other than the Company or a Subsidiary) holds U.S. Legal Tender sufficient to pay all of the principal and interest due on the Securities payable on that date, then on and after that date such Securities shall cease to be outstanding and interest on them shall cease to accrue.

SECTION 2.09.

SECURITIES NOT OUTSTANDING.

In determining whether the Holders of the required principal amount of outstanding Securities have given any request, demand, authorization, direction, notice, consent or waiver hereunder or whether a quorum is present at a meeting of Holders of Securities, Securities owned by the Company or any other obligor on the Securities or any Affiliate of the Company or of such other obligor shall be disregarded and deemed not to be outstanding, except that, in determining whether the Trustee shall be protected in relying upon any such request, demand, authorization, direction, notice, consent or waiver or upon any such determination as to the presence of a quorum, only Securities which a Trust Officer 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 an Affiliate of the Company or of such other obligor.  The Trustee may require an Officer’s Certificate listing Securities owned by the Company or any other obligor upon the Securities or any Affiliate of the Company or of such other obligor.

SECTION 2.10.

RESERVED.

SECTION 2.11.

CANCELLATION.

The Company at any time may deliver Securities to the Trustee for cancellation. The Registrar, each co-Registrar and the Paying Agent shall forward to the Trustee any Securities surrendered to them for transfer, exchange or payment.  The Trustee shall cancel all Securities surrendered for registration of transfer, exchange, payment, replacement or cancellation. Subject to Section 2.07 hereof, the Company may not execute new Securities to replace Securities it has paid or delivered to the Trustee for cancellation. All canceled Securities held by the Trustee shall be destroyed and certification of their destruction delivered to the Company, unless the Company shall direct the Trustee, by a written order signed by an Officer of the Company, to return the cancelled Securities to the Company.

SECTION 2.12.

DEFAULTED INTEREST.

If the Company fails to pay any principal of or interest on any Security on the due date therefor (whether upon acceleration, at the related Stated Maturity Date or otherwise), the Company shall pay, from and after the expiration of any cure period, interest thereon, at the rate per annum borne by the Securities, to the extent permitted by law.  Any interest on any Security which shall be payable, but shall not be punctually paid or duly provided for, on any Interest Payment Date for such Security (herein called “Defaulted Interest”) shall forthwith cease to be payable to the Holder thereof on the relevant 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 Person in whose name such Security (or a Predecessor Security thereof) shall be registered at the close of business on a Special Record Date for the payment of such Defaulted Interest, which date shall be fixed in the following manner:

(A)

The Company shall notify the Trustee in writing of the amount of Defaulted Interest proposed to be paid on such Security and the date of the proposed payment, and at the same time the Company shall deposit with the Trustee an amount of U.S. Legal Tender equal to the aggregate amount proposed to be paid in respect of such Defaulted Interest or shall make arrangements satisfactory to the Trustee for such deposit on or prior to the date of the proposed payment, such U.S. Legal Tender when so deposited to be held in trust for the benefit of the Persons entitled to such Defaulted Interest as in this clause provided.

(B)

Thereupon, the Trustee shall fix a “Special Record Date” for the payment of such Defaulted Interest which shall be not more than 15 days and not less than 10 days prior to the date of the proposed payment and not less than 10 days after the receipt by the Trustee of the notice of the proposed payment.  The Trustee shall promptly notify the Company of such Special Record Date and, in the name and at the expense of the Company, shall cause notice of the proposed payment of such Defaulted Interest and the Special Record Date therefor to be mailed, first class, postage prepaid, to each Holder of Securities at his address as it appears in the Security Register, not less than 10 days prior to such Special Record Date. Notice of the proposed payment of such Defaulted Interest and the Special Record Date therefor having been mailed as aforesaid, such Defaulted Interest shall be paid to the Person in whose name such Security (or a Predecessor Security thereof) shall be registered at the close of business on such Special Record Date and shall no longer be payable pursuant to the following clause (2).

(2)

The Company may make payment of any Defaulted Interest in any other lawful manner not inconsistent with the requirements of any securities exchange on which the Securities may be listed, and upon such notice as may be required by such exchange, if, after written notice given by the Company to the Trustee of the proposed payment method pursuant to this clause, such payment method 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 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 2.13.

PERSONS DEEMED OWNERS.

Prior to due presentment of a Security for registration of transfer, the Company, the Trustee and any Agent may treat the Person in whose name such Security is registered as the owner of such Security for the purpose of receiving payments of principal of and, subject to Section 2.12, interest on such Security and for all other purposes whatsoever (whether or not such Security is overdue), and neither the Company nor the Trustee or any other Agent shall be affected by notice to the contrary.

SECTION 2.14.

COMPUTATION OF INTEREST.

Interest on the Securities shall be computed on the basis of a 360-day year of twelve 30-day months.

ARTICLE III.

REDEMPTION.

SECTION 3.01.

REDEMPTION.

The Securities may not be redeemed at the option of the Company, in whole or in part at any time prior to their respective Stated Maturities.

ARTICLE IV.

COVENANTS.

SECTION 4.01.

PAYMENT OF SECURITIES.

The Company will punctually pay the principal of and interest on the Securities on the dates and in the manner provided in the Securities and this Indenture.

The Company will, on or prior to the day when any principal of or interest on any of the Securities becomes payable, whether at the Stated Maturity Date thereof, by demand for payment by any Holder of a Security (i) if for any reason Standard & Poor’s reduces the Company’s short-term debt to a rating less than A-1+ or the Company’s long-term debt to a rating of less than AA or Moody’s reduces the Company’s short-term debt to a rating less than P-1 or the Company’s long-term debt to a rating less than Aa3 and the Trustee determines, based on advice of [________], its successor or its independent public accountants, that at such time one or more Permitted Investments having substantially the same maturities, similar demand features and bearing interest at the relevant Required Rates are available and, based on oral or written advice to such effect from each Rating Agency, that  6   investment therein rather than in the Company’s Demand Notes will not, by itself, cause a Rating Agency to reduce or withdraw its rating of any Class of [Notes][Certificates] or (ii) in connection with any Swap Termination, in the form of Exhibit B hereto delivered to the Trustee, surrender the Securities for repurchase, declaration of acceleration or otherwise, and deposit with the Paying Agent (or, if the Company or a Subsidiary of the Company is acting as Paying Agent, segregate and hold in trust), in immediately available funds, no later than 12:00 noon (New York City time), a sum in U.S. Legal Tender sufficient to pay the principal and interest becoming due. Such sum shall be held in trust for the benefit of the Holders entitled to such payment and (unless such Paying Agent is the Trustee) the Company shall promptly notify the Trustee in writing of its action or failure so to act, and of the amount of each such payment made to each Paying Agent.

On the second Business Day preceding each Monthly Allocation Date on which Securities are to be issued or additional amounts are to be invested in outstanding Securities, the Trustee will calculate the Commercial Paper Rate for the relevant Interest Period for each Security in which an investment is to be made, and shall inform the Company promptly in writing of each such Commercial Paper Rate.

SECTION 4.02.

MAINTENANCE OF OFFICE OR AGENCY; PAYING AGENT AND REGISTRAR.

The Company will maintain in [city], an office or agency where Securities may be presented or surrendered for payment (“Paying Agent”), where Securities may be surrendered for registration of transfer or exchange (“Registrar”) and where notices and demands to or upon the Company in respect of payments on the Securities or under this Indenture may be served.  Unless otherwise expressly provided herein, the Trustee, the Company or a Subsidiary of the Company may act as Registrar, co-Registrar or Paying Agent.  The Company shall give prompt written notice to the Trustee and the Holders of the location, and any change in the location, of such office or agency.  If at any time the Company shall fail to maintain any such required office or agency or shall fail to furnish the Trustee with the address thereof, such presentations, surrenders, notices and demands may be made or served at the Corporate Trust Office of the Trustee.

The Company initially appoints the Trustee, as the initial Registrar and Paying Agent in Chicago, Illinois, and designates, for the purposes of this Section 4.02, such agent as an agency where notices and demands to or upon the Company in respect of payments on the Securities or under this Indenture may be served.  The parties hereto agree such agency is not an agency for service of process.

SECTION 4.03.

COMPANY STATEMENT AS TO COMPLIANCE; NOTICE OF CERTAIN DEFAULTS.

The Company shall deliver to the Trustee, within 120 days after the end of each fiscal year, a written statement (which need not be contained in or accompanied by an Officer’s Certificate) signed by the principal executive officer, the principal financial officer or the principal accounting officer of the Company, stating that:

(a)

a review of the activities of the Company during such year and of its performance under this Indenture has been made under his or her supervision, and  (b) to the best of his or her knowledge, based on such review, (i) the Company has complied with all the conditions and covenants imposed on it under this Indenture throughout such year, or, if there has been a default in the fulfillment of any such condition or covenant, specifying each such default known to him or her and the nature and status thereof, and (ii) no event has occurred and is continuing which is, or after notice or lapse of time or both would become, an Event of Default, or, if such an event has occurred and is continuing, specifying each such event known to him and the nature and status thereof.

(b)

The Company shall deliver to the Trustee, within five days after the occurrence thereof, written notice of any event which after notice or lapse of time or both would become an Event of Default pursuant to clause (c) of Section 6.01.

ARTICLE V.

CONSOLIDATIONS AND MERGERS, ETC.

SECTION 5.01.

COMPANY MAY CONSOLIDATE, ETC., ONLY ON CERTAIN TERMS.

Nothing contained in this Indenture or in any of the Securities shall prevent any consolidation or merger of the Company with or into any other Person or Persons (whether or not affiliated with the Company), or successive consolidations or mergers in which the Company or its successor or successors shall be a party or parties, or shall  7   prevent any conveyance, transfer or lease of the property of the Company as an entirety or substantially as an entirety, to any other Person (whether or not affiliated with the Company); provided, however, that:

(1)

in case the Company shall consolidate with or merge into another Person or convey, transfer or lease its properties and assets substantially as an entirety to any Person, the Company shall be the surviving entity or the entity formed by such consolidation or into which the Company is merged or the Person which acquires by conveyance or transfer, or which leases, the properties and assets of the Company substantially as an entirety shall be a Corporation organized and 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 (or indentures, if at such time there is more than one Trustee) supplemental hereto, executed by the successor Person and delivered to the Trustee, in form satisfactory to the Trustee, the due and punctual payment of the principal of and interest on all the Securities and the performance of every other covenant of this Indenture on the part of the Company to be performed or observed;

(2)

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

(3)

either the Company or the successor Person shall have delivered to the Trustee an Officer’s Certificate and an Opinion of Counsel, stating that such consolidation, merger, conveyance, transfer or lease and such supplemental indenture comply with this Article and that all conditions precedent herein provided for relating to such transaction have been complied with.

SECTION 5.02.

SUCCESSOR PERSON SUBSTITUTED FOR COMPANY.

Upon any consolidation or merger or any conveyance, transfer or lease of the properties and assets of the Company substantially as an entirety to any Person in accordance with Section 5.01, the successor Person formed by such consolidation or into which the Company is merged or to which such conveyance, transfer or lease is made shall succeed to, and be substituted for, and may exercise every right and power of, the Company under this Indenture with the same effect as if such successor Person had been named as the Company herein; and thereafter, except in the case of a lease to another Person, the predecessor Person shall be released from all obligations and covenants under this Indenture and the Securities.

ARTICLE VI.

DEFAULT AND REMEDIES.

SECTION 6.01.

EVENTS OF DEFAULT.

The occurrence of any one of the following events for any reason whatsoever, and whether voluntary, involuntary or by operation of law, shall constitute an “Event of Default”:

(a)

default in the payment of any interest on any Security when such interest becomes due and payable, and continuance of such default for a period of 30 days; or

(b)

default in the payment of the principal of any Security of such series when it becomes due and payable at its Maturity, and continuance of such default for a period of 10 days; or

(c)

default in the performance, or breach, of any covenant or warranty of the Company in this Indenture or the Securities, and continuance of such default or breach for a period of 60 days after there has been given, by registered or certified mail, to the Company by the Trustee or to the Company and the Trustee by the Holders of at least 25% in principal amount of the Outstanding Securities 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

(d)

any Insolvency Event of the Company.

SECTION 6.02.

ACCELERATION OF MATURITY; RESCISSION AND ANNULMENT.

If an Event of Default with respect to Securities occurs and is continuing, then the Trustee or the Holders of not less than 25% in principal amount of the outstanding Securities may declare the principal of all the Securities to be due and payable immediately, by a notice in writing to the Company (and to the Trustee if given by the Holders), and upon any such declaration such principal amount shall become immediately due and payable.

At any time after such a declaration of acceleration with respect to Securities 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 not less than a majority in principal amount of the outstanding Securities, 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 of money sufficient to pay:

(A)

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

(B)

all due and overdue installments of interest on all Securities;

(C)

the principal of any Securities which have become due otherwise than by such declaration of acceleration and interest thereon at the rate borne by or provided for in such Securities; and

(D)

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

(2)

all Events of Default with respect to Securities, other than the non-payment of the principal of, and interest on Securities which shall have become due solely by such declaration of acceleration, shall have been cured or waived as provided in Section 6.13.

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

SECTION 6.03.

COLLECTION OF INDEBTEDNESS AND SUITS FOR ENFORCEMENT BY TRUSTEE.

The Company covenants that if:

(1)

default is made in the payment of any installment of interest on any Security when such interest shall have become 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 any Security at its Maturity, and such default continues for a period of 10 days; the Company shall, upon demand of the Trustee, pay to the Trustee, for the benefit of the Holders of such Securities, the whole amount of money then due and payable with respect to such Securities with interest upon the overdue principal and, to the extent that payment of such interest shall be legally enforceable, upon any overdue installments of interest at the rate borne by or provided for in such Securities, and, in addition thereto, such further amount of money as shall be sufficient to cover the costs and expenses of collection, including the reasonable compensation, expenses, disbursements and advances of the Trustee, its agents and counsel.

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

If an Event of Default with respect to Securities 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 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 such Securities or in aid of the exercise of any power granted herein or therein, or to enforce any other proper remedy.

SECTION 6.04.

TRUSTEE MAY FILE PROOFS OF CLAIM.

In case of the pendency of any receivership, insolvency, liquidation, bankruptcy, reorganization, arrangement, adjustment, composition or other judicial proceeding relative to the Company or any other obligor upon the Securities or the property of the Company or such other obligor or their creditors, the Trustee (irrespective of whether the principal of the Securities shall then be due and payable as therein expressed or by declaration or otherwise and irrespective of whether the Trustee shall have made any demand on the Company for the payment of  9   any overdue principal and/or interest) shall be entitled and empowered, by intervention in such proceeding or otherwise,

(i)

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

(ii)

to collect and receive any money or other property payable or deliverable on any such claims and to distribute the same;

and any custodian, receiver, assignee, trustee, liquidator, sequestrator or other similar official in any such judicial proceeding is hereby authorized by each Holder of Securities 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 of Securities, to pay to the Trustee any amount due to it for the reasonable compensation, expenses, disbursements and advances of the Trustee, its agents and counsel and any other amounts due the Trustee relating to this Indenture.

Nothing herein contained shall be deemed to authorize the Trustee to authorize or consent to or accept or adopt on behalf of any Holder of a Security 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 of a Security in any such proceeding.

SECTION 6.05.

TRUSTEE MAY ENFORCE CLAIMS WITHOUT POSSESSION OF SECURITIES.

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

SECTION 6.06.

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 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 and any predecessor Trustee relating to this Indenture;

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

THIRD: The balance, if any, to the Person or Persons entitled thereto.

SECTION 6.07.

LIMITATION ON SUITS.

No Holder of any Security 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;

(2)

the Holders of not less than 25% in principal amount of the outstanding Securities 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 indemnity satisfactory to it against the costs, expenses and liabilities (including counsel’s fees, expenses and disbursements) 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;

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 or any Security to affect, disturb or prejudice the rights of any other such Holders, or to obtain or to seek to obtain priority or preference over any other Holders or to enforce any right under this Indenture, except in the manner herein provided and for the equal and ratable benefit of all such Holders.

SECTION 6.08.

UNCONDITIONAL RIGHT OF HOLDERS TO RECEIVE PRINCIPAL AND INTEREST.

Notwithstanding any other provision in this Indenture, the Holder of any Security shall have the right, which is absolute and unconditional, to receive payment of the principal of and interest on such Security, as the case may be, on the respective Stated Maturity Date or other Maturity therefor specified in such Security (subject in each case to the respective cure periods set forth in Section 6.01) and to institute suit for the enforcement of any such payment, and such right shall not be impaired without the consent of such Holder.

SECTION 6.09.

RESTORATION OF RIGHTS AND REMEDIES.

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

SECTION 6.10.

RIGHTS AND REMEDIES CUMULATIVE.

Except as otherwise provided with respect to the replacement or payment of mutilated, destroyed, lost or stolen Securities in the last paragraph of Section 2.07, no right or remedy herein conferred upon or reserved to the Trustee or to each and every Holder of a Security is intended to be exclusive of any other right or remedy, and every right and remedy, to the extent permitted by law, shall 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 6.11.

DELAY OR OMISSION NOT WAIVER.

No delay or omission of the Trustee or of any Holder of any Security 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 any Holder of a Security may be exercised from time to time, and as often as may be deemed expedient, by the Trustee or by such Holder, as the case may be.

SECTION 6.12.

CONTROL BY HOLDERS OF SECURITIES.

The Holders of a majority in principal amount of the Outstanding Securities shall have the right to direct in writing 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 law or regulation, with this Indenture or with the Securities of such series;

(2)

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

(3)

such direction is not unduly prejudicial to the rights of the other Holders of Securities of such series not joining in such action; and

(4)

such direction shall not, in the good faith determination of any Trust Officer of the Trustee, subject the Trustee to personal liability unless such Holders have provided indemnity to the Trustee satisfactory to it.

SECTION 6.13.

WAIVER OF PAST DEFAULTS.

The Holders of not less than a majority in principal amount of the Outstanding Securities on behalf of the Holders of all the Securities may 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 interest on any Security which has not been cured as provided in Section 6.02; or

(2)

in respect of a covenant or provision hereof which under Article IX cannot be modified or amended without the consent of the Holder of each Outstanding Security 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 6.14.

UNDERTAKING FOR COSTS.

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

ARTICLE VII.

TRUSTEE.

The Trustee hereby accepts the trust imposed upon it by this Indenture and covenants and agrees to perform the same, as herein expressed.

SECTION 7.01.

DUTIES OF TRUSTEE.

(a)

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

(b)

Except during the continuance of an Event of Default:

(1)

The Trustee need perform only those duties as are specifically set forth in this Indenture and no covenants or obligations shall be implied in this Indenture which are adverse to the Trustee.

(2)

In the absence of bad faith on its part, the Trustee may conclusively rely, as to the truth of the statements and the correctness of the opinions expressed therein, upon certificates or opinions furnished to the Trustee and conforming to the requirements of this Indenture.  However, the Trustee shall examine the certificates  and opinions to determine whether or not they conform to the requirements of this Indenture, but need not verify the accuracy of the contents thereof.

(c)

Neither the Trustee nor any of its officers, directors or employees shall be liable for its own negligent action, its own negligent failure to act, or its own willful misconduct, except that:

(1)

This paragraph does not limit the effect of paragraph (b) of this Section 7.01.

(2)

The Trustee shall not be liable for any error of judgment made in good faith by a Trust Officer, unless it is proved that the Trustee was negligent in ascertaining the pertinent facts.

(3)

The Trustee shall not be liable with respect to any action it takes or omits to take in good faith in accordance with a direction received by it pursuant to Section 6.12 hereof.

(d)

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

(e)

Whether or not expressly so provided, every provision of this Indenture that in any way relates to the Trustee is subject to paragraphs (a), (b), (c) and (d) of this Section 7.01.

(f)

The Trustee shall not be liable for interest on any money received by it except as the Trustee may agree in writing with the Company. Money held in trust by the Trustee need not be segregated from other funds except to the extent required by law.

(g)

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, unless such Holders shall have offered to the Trustee reasonable security or indemnity satisfactory to it, against the costs, expenses and liability (including counsel’s fees, expenses and disbursements) which might be incurred by the Trustee in compliance with such request or direction.

SECTION 7.02.

RIGHTS OF TRUSTEE.

Subject to the provisions of Section 7.01 hereof:

(a)

The Trustee may conclusively rely and be fully protected in acting or refraining from acting on any document, resolution, certificate, statement, instrument, opinion, report, notice, request, consent, order or approval believed by it to be genuine and to have been signed or presented by the proper Person. The Trustee need not investigate any fact or matter stated in the document.

(b)

Whenever in the administration of its duties and obligations pursuant to this Indenture, before the Trustee acts or refrains from acting, it may require an Officer’s Certificate and an Opinion of Counsel, which shall conform to Section 11.05. The Trustee shall not be liable for any action it takes or omits to take in good faith in reliance on such certificate or opinion.  The Trustee may consult with counsel and the written advice of such counsel or any Opinion of Counsel shall be full and complete authorization and protection in respect of any action taken, suffered or omitted by it hereunder in good faith and in reliance thereon.

(c)

The Trustee may act through its attorneys, agents, custodians and nominees and shall not be responsible for the misconduct or negligence of any attorney, agent, custodian or nominee appointed with due care.

(d)

The Trustee shall not be liable for any action it takes or omits to take in good faith which it believes to be authorized or within its rights or powers.

(e)

In the event that the Trustee is also acting as Paying Agent, authenticating agent or Registrar hereunder, the rights and protections afforded to the Trustee pursuant to this Article VII shall also be afforded to such Paying Agent, authenticating agent or Registrar.

SECTION 7.03.

INDIVIDUAL RIGHTS OF TRUSTEE.

The Trustee in its individual or any other capacity may become the owner or pledgee of Securities and may otherwise deal with the Company or its Subsidiaries or Affiliates with the same rights it would have if it were not Trustee.  Any Agent may do the same with like rights. However, the Trustee must comply with Sections 7.10 and 7.11 hereof.

SECTION 7.04.

TRUSTEE’S DISCLAIMER.

The Trustee makes no representation as to the validity or adequacy of this Indenture or the Securities or any money paid to the Company or upon the Company’s written direction under any provision hereof, and the Trustee shall not be accountable for the Company’s use of the proceeds from the Securities, and the Trustee shall not be responsible for any statement in the Securities other than its certificate of authentication.

SECTION 7.05.

NOTICE OF DEFAULTS.

If a Default or an Event of Default occurs and is continuing and it is actually known to a Trust Officer of the Trustee, the Trustee shall mail to each Holder notice of the Default or Event of Default within 90 days after it occurs; provided that, except in the case of a Default or an Event of Default in payment of principal of or interest on any Security, the Trustee may withhold the notice if and so long as a committee of its Trust Officers in good faith determines that withholding the notice is in the interest of the Holders.

SECTION 7.06.

REPORTS BY TRUSTEE TO HOLDERS.

Within 60 days after each May 15 beginning with the May 15 following the date of this Indenture, the Trustee shall mail to each Holder, and each other Person so entitled under TIA ss.313(c), a brief report dated as of such May 15 that shall comply with TIA ss.313(a).  The Trustee need not send such report if such report is not required by TIA (ss.)313(a).  The Trustee also shall comply with TIA ss.313(b).

A copy of each report at the time of its mailing to Holders shall be mailed to the Company and filed with the Commission and each stock exchange, if any, on which the Securities are listed.

The Company shall notify the Trustee if the Securities become listed on any stock exchange prior to such listing.

SECTION 7.07.

COMPENSATION AND INDEMNITY.

The Company shall pay to the Trustee from time to time reasonable compensation for its services hereunder.  The Trustee’s compensation shall not be limited by any law on compensation of a trustee of an express trust. The Company shall reimburse the Trustee upon request for all reasonable disbursements, expenses and advances incurred or made by it.  Such expenses shall include the reasonable compensation, disbursements and expenses of the Trustee’s agents and counsel.

The Company shall indemnify the Trustee for, and hold it harmless against, any loss, liability or expense incurred by it and its officers, directors and employees including, without limitation, the cost and expense of enforcement of this Indenture against the Company and of defending itself against any claim (whether asserted by any Holder or the Company or otherwise) unless the Trustee or its officers, directors and employees acted with negligence, willful misconduct or bad faith on its part, arising out of or in connection with the administration of this trust or any trust created under Section 8.01 or 8.02 and its duties hereunder. The Trustee shall notify the Company, as soon as is reasonably practicable, of any claim asserted against the Trustee for which it may seek indemnity; PROVIDED, HOWEVER that the Trustee’s failure to provide such notice shall not constitute a waiver of its rights under this Section 7.07.  The Company need not reimburse any expense or indemnify against any loss or liability incurred by the Trustee through negligence, willful misconduct or bad faith.

To secure the Company’s payment obligations in this Section 7.07, the Trustee shall have a lien prior to the Securities on all money or Property held or collected by the Trustee, in its capacity as Trustee, except money or Property held in trust to pay principal of or interest on particular Securities.

When the Trustee incurs expenses or renders services after an Event of Default specified in Section 6.01(d) hereof, the expenses and the compensation for the services are intended to constitute expenses of administration under any federal or state bankruptcy, insolvency, reorganization or similar law.

The provisions of this Section 7.07 shall survive the termination of this Indenture or the earlier resignation or termination of the Trustee.

SECTION 7.08.

REPLACEMENT OF TRUSTEE.

The Trustee may resign by so notifying the Company in writing and mailing notice of such resignation to the Holders.  The Holders of at least a majority in principal amount of the outstanding Securities may remove the Trustee by so notifying the Company and the Trustee in writing and may appoint a successor Trustee.  The Company may remove the Trustee if:

(1)

the Trustee fails to comply with Section 7.10 hereof;

(2)

the Trustee is adjudged, by a court of competent jurisdiction, a bankrupt or an insolvent;

(3)

a receiver or other public officer takes charge of the Trustee or its Property; or

(4)

the Trustee becomes legally or otherwise incapable of acting under and in accordance with the provisions of this Indenture.

If the Trustee resigns or is removed or if a vacancy exists in the office of Trustee for any reason, the Company shall promptly appoint a successor Trustee, unless the Holders have appointed a successor Trustee in accordance with the previous paragraph.  Within one year after the successor Trustee takes office, the Holders of a majority in principal amount of the Securities may appoint a successor Trustee to replace the successor Trustee appointed by the Company.

A resignation or removal of the Trustee and appointment of a successor Trustee shall become effective only upon the successor Trustee’s acceptance of appointment as provided in this Section 7.08 and payment to the prior Trustee of all sums due under Section 7.07 hereof.

A successor Trustee shall deliver a written acceptance of its appointment to the retiring Trustee and to the Company.  Immediately after that, the retiring Trustee shall transfer all Property held by it as Trustee to the successor Trustee, subject to the lien provided in Section 7.07 hereof, the resignation or removal of the retiring Trustee shall become effective, and the successor Trustee shall have all the rights, powers and duties of the Trustee under this Indenture. A successor Trustee shall mail notice of its succession to each Holder.  The predecessor Trustee shall not be liable for any acts or omissions of any successor Trustee and the successor Trustee shall not be liable for any acts or omissions of any predecessor Trustee.

If a successor Trustee does not take office within 30 days after the retiring Trustee resigns or is removed, the retiring Trustee, the Company or the Holders of at least 10% in principal amount of the outstanding Securities may petition any court of competent jurisdiction for the appointment of a successor Trustee.

If the Trustee fails to comply with Section 7.10 hereof, any Holder may petition any court of competent jurisdiction for the removal of the Trustee and the appointment of a successor Trustee.

Notwithstanding replacement of the Trustee pursuant to this Section 7.08, the Company’s obligations under Section 7.07 above shall continue for the benefit of the retiring or removed Trustee.

SECTION 7.09.

SUCCESSOR TRUSTEE BY MERGER, ETC.

If the Trustee consolidates with, merges or converts into, or transfers all or substantially all of its corporate trust business to, another corporation, the resulting, surviving or transferee corporation without any further act shall, if such resulting, surviving or transferee corporation is otherwise eligible hereunder, be the successor Trustee.

SECTION 7.10.

ELIGIBILITY; DISQUALIFICATION.

This Indenture shall always have a Trustee who satisfies the requirements of TIA ss.310(a)(1).  The Trustee shall have a combined capital and surplus of at least $25,000,000 as set forth in its most recent published annual report of condition.  Neither the Company nor any Person directly or indirectly controlling, controlled by, or under common control with the Company shall serve as Trustee.  The Trustee shall comply with TIA ss.310(b).

SECTION 7.11.

PREFERENTIAL COLLECTION OF CLAIMS AGAINST COMPANY.

The Trustee shall comply with TIA ss.311(a), excluding any creditor relationship listed in TIA ss.311(b). A Trustee who has resigned or been removed shall be subject to TIA ss.311(a) to the extent indicated.

ARTICLE VIII.

DEFEASANCE; SATISFACTION AND DISCHARGE.

SECTION 8.01.

DEFEASANCE OF THE INDENTURE.

The Company shall be deemed to have satisfied and terminated all of its obligations under this Indenture (subject to Section 8.03 hereof) if:

(1)

the Company irrevocably shall have deposited in trust with the Trustee, pursuant to an irrevocable trust agreement in form reasonably satisfactory to the Trustee, as trust funds in trust solely for the benefit of the Holders for that purpose, U.S. Legal Tender, in such amounts as are sufficient, without consideration of the investment of any such U.S. Legal Tender and after payment of all federal, state and local taxes or other charges or assessments in respect thereof payable by the Trustee, in the opinion of a nationally recognized firm of independent public accountants expressed in a written certification thereof delivered to, and in form reasonably satisfactory to, the Trustee, to pay the principal of and interest on the outstanding Securities on the dates on which such payments are due and payable in accordance with the terms of this Indenture and of the Securities, provided that the Trustee shall have been irrevocably instructed in writing to apply such U.S. Legal Tender to the payment of said principal and interest on the Securities;

(2)

no Default or Event of Default shall have occurred or be continuing on the date of such deposit or shall occur on or before the 366th day after the date of such deposit;

(3)

such deposit shall not result in a breach or violation of, or constitute a default under, this Indenture or any other instrument or agreement to which the Company is a party or by which it or its Property is bound;

(4)

the Company shall have delivered to the Trustee an Opinion of Counsel in form satisfactory to the Trustee to the effect that Holders of the Securities will not recognize income, gain or loss for Federal income tax purposes as a result of such deposit and the defeasance contemplated hereby and will be subject to Federal income tax in the same amounts and in the same manner and at the same time as would have been the case if such deposit and defeasance had not occurred and that the deposit is not subject to the control of any bankruptcy court;

(5)

such defeasance shall not cause the Securities, if then listed on any national securities exchange registered under the Exchange Act, to be delisted;

(6)

such deposit shall not result in the Company, the Trustee or the irrevocable trust becoming or being deemed an “investment company” under the Investment Company Act of 1940, as amended; and

(7)

the Company shall have delivered to the Trustee an Officer’s Certificate and an Opinion of Counsel, each stating that all conditions precedent specified herein relating to the defeasance contemplated by this Section 8.01 have been complied with.

In the event all or any portion of the Securities are to be redeemed through such irrevocable trust, the Company shall make arrangements satisfactory to the Trustee, at the time of such deposit, for the giving of notice of such redemption or redemptions by the Trustee in the name and at the expense of the Company.

SECTION 8.02.

SATISFACTION AND DISCHARGE OF THE INDENTURE.

In addition to its rights under Section 8.01 above, the Company may terminate all of its obligations under this Indenture (subject to Section 8.03 hereof) if:

(1)

either

(A)

all Securities theretofore authenticated and delivered  (other than Securities which have been destroyed, lost or stolen  and which have been replaced or paid as provided in Section 2.07  hereof) have been delivered to the Trustee for cancellation; or

(B)

all 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;

and the Company, in the case of (i) or (ii) above, has irrevocably deposited in trust with the Trustee, pursuant to an irrevocable trust agreement in form reasonably satisfactory to the Trustee, as trust funds in trust solely for the benefit of the Holders for that purpose, an amount of U.S. Legal Tender sufficient, without consideration of the investment thereof and after payment of all federal, state and local taxes or other charges or assessments in respect thereof payable by the Trustee, to pay the principal of and interest on the outstanding Securities on the dates on which such payments are due and payable in accordance with the terms of this Indenture and of the Securities, provided that the Trustee shall have been irrevocably instructed in writing to apply such U.S. Legal Tender to the payment of said principal and interest on the Securities;

(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 Officer’s Certificate and an Opinion of Counsel, each stating that all conditions precedent specified herein relating to the satisfaction and discharge of this Indenture pursuant to this Section 8.02 have been complied with.

SECTION 8.03.

SURVIVAL OF CERTAIN OBLIGATIONS.

Notwithstanding the defeasance of this Indenture or the satisfaction and discharge of this Indenture referred to in Section 8.01 and Section 8.02 above, respectively, the respective obligations of the Company and the Trustee under Sections 2.02, 2.03, 2.04, 2.05, 2.06, 2.07, 2.08, 2.09, 2.11, 2.13, 2.14, Sections 4.01, 4.02, 4.03, 6.08, 7.07, 7.08, 7.09, 7.10, 7.11, 8.03, 8.04, 8.05, 8.06 and 8.07, Article IX, and Sections 11.01, 11.02, 11.06, 11.07, 11.08, 11.10, 11.11 and 11.13 hereof shall survive until the Securities are no longer outstanding.  Thereafter the obligations of the Company and the Trustee under Sections 7.07, 8.05, 8.06, 8.07 and 11.10 hereof shall survive.

SECTION 8.04.

ACKNOWLEDGMENT OF DISCHARGE BY TRUSTEE.

Subject to Section 8.07 below and after the Company has delivered to the Trustee an Officer’s Certificate and an Opinion of Counsel, each stating that all conditions precedent referred to in Section 8.01 or Section 8.02, as the case may be, relating to the defeasance or satisfaction and discharge of this Indenture have been complied with, the Trustee upon written request of the Company shall acknowledge in writing the defeasance or the satisfaction and discharge, as the case may be, of this Indenture and the discharge of the Company’s obligations under this Indenture except for those surviving obligations specified in Section 8.03 above. The Company shall reimburse the Trustee for reasonable costs and expenses incurred by it in the performance of its duties and obligations under this Section 8.04.

SECTION 8.05.

APPLICATION OF TRUST MONEY.

The Trustee shall hold any U.S. Legal Tender deposited with it in the irrevocable trust established pursuant to Section 8.01 or 8.02, as the case may be.  The Trustee shall apply the deposited U.S. Legal Tender through the Paying Agent (other than the Company or a Subsidiary or Affiliate of the Company), in accordance with this Indenture and the terms of the irrevocable trust agreement, to the payment of principal of and interest on the Securities as and when the same become due and payable.  The U.S. Legal Tender so held in trust shall not be part of the trust estate under this Indenture, but shall constitute a separate trust fund for the benefit of all Holders entitled thereto.

SECTION 8.06.

REPAYMENT TO THE COMPANY.

The Trustee and the Paying Agent shall pay to the Company upon written request, and, if applicable, in accordance with the irrevocable trust established pursuant to Section 8.01 or 8.02 above, any U.S. Legal Tender held by them for the payment of principal of or interest on the Securities that remains unclaimed for two years after the date on which such payment shall have become due (whether on or before the related Stated Maturity Date); provided, however, that, before being required to make any such payment to the Company, the Trustee may, at the expense of the Company, cause to be mailed to the Holders of such Securities, at their last addresses as they appear on the Securities register, notice that such moneys remain unclaimed and that, after a date specified in said notice, the balance of such moneys then unclaimed will be returned to the Company. After payment to the Company as aforesaid, Holders entitled to such moneys must look to the Company for such payment unless an applicable abandoned property law designates another Person.

SECTION 8.07.

REINSTATEMENT.

If the Trustee or Paying Agent is unable to apply any U.S. Legal Tender in accordance with Section 8.01 or 8.02 hereof by reason of any legal proceeding or by reason of any order or judgment of any court or Governmental Authority enjoining, restraining or otherwise prohibiting such application, the Company’s obligations under this Indenture shall be revived and reinstated as though no deposit had occurred pursuant to Section 8.01 or 8.02, as the case may be until such time as the Trustee or Paying Agent is permitted to apply all such funds in accordance with Section 8.01 or 8.02, as the case may be, and 8.05; provided, however, that if the Company has made any payment of principal of or interest on any Securities because of the reinstatement of its obligations, the Company shall be subrogated to the rights of the Holders of such Securities to receive such payment from the U.S. Legal Tender held by the Trustee.

ARTICLE IX.

AMENDMENTS, SUPPLEMENTS AND WAIVERS.

SECTION 9.01.

WITHOUT CONSENT OF HOLDERS.

The Company and the Trustee, together, may amend or supplement this Indenture or the Securities without notice to or consent of any Holder (i) to cure any ambiguity, defect or inconsistency, or to make any other provisions with respect to matters or questions arising under this Indenture, provided that any such action does not, in the good faith judgment of the Company, materially and adversely affect the rights or interests of any Holder of Securities, (ii) to add to the covenants and agreements of the Company such further covenants and agreements as the Board of Directors of the Company shall consider to be for the protection or benefit of the Holders (including to add any Events of Default), (iii) to add to or change or eliminate any provision of this Indenture as shall be necessary or desirable in accordance with any amendments to the Trust Indenture Act, provided such action does not adversely affect the rights or interests of any Holder of Securities and (iv) to secure all of the Securities.

In addition to the requirements set forth in Section 9.06 herein, the Trustee may require delivery of an Opinion of Counsel to the effect that such amendment will not materially and adversely affect the interest of any Certificateholder in connection with any such amendment or supplement, and the Trustee shall be fully protected in relying upon such Opinion of Counsel.

In addition, this Indenture may be amended or supplemented by the Trustee and the Company without the consent of any Holder or of any [Note][Certificate] Owner with respect to the [Notes][Certificates] issued pursuant to the [Indenture][Trust Agreement][Pooling and Servicing Agreement] or of the [Owner Trustee or Indenture Trustee][Trustee] to (i) reflect changes necessary or appropriate in connection with any event described under Section

5.01, Section 7.08 or Section 7.09 or (ii) to surrender any right or power reserved to or conferred upon the Company.

SECTION 9.02.

WITH CONSENT OF HOLDERS.

Subject to Section 6.08 and the next succeeding paragraph, the Company, when authorized by a resolution of its Board of Directors, and the Trustee with the written consent of the Holders of at least a majority in aggregate principal amount of the outstanding Securities (which consent will not be given except at the written direction of [Noteholders] [Certificateholders] of at least 25% in aggregate principal amount of the [specify relevant class or classes of Notes or Certificates]) may amend or supplement this Indenture or the Securities for the purpose of adding any provisions to or changing in any manner, or eliminating any other provisions of this Indenture or modifying in any manner the rights with respect to the Securities. Subject to Section 6.08 and the next succeeding paragraph, the Holders of at least a majority in aggregate principal amount of the outstanding Securities may waive compliance by the Company with any provision of or obligation under this Indenture or the Securities without notice to any other Holders.

Notwithstanding anything to the contrary in the foregoing provisions of this Section 9.02, without the consent of each Holder and [Noteholder] [Certificateholder] affected, no amendment, supplement or waiver, including a waiver pursuant to Section 6.02, may:

(1)

reduce the percentage in principal amount of the outstanding Securities the consent of whose Holders is required for any amendment or supplement to this Indenture, for any waiver (of compliance with any obligation or provision of this Indenture or of certain Defaults or Events of Default hereunder or their  18   consequences) provided for in this Indenture, or for a rescission of acceleration of the Securities pursuant to Section 6.02, or reduce the requirements pursuant to Section 10.05 for a quorum or voting;

(2)

reduce the rate or change the time for payment of interest on any Security;

(3)

reduce the principal amount of any Security;

(4)

alter the repurchase provisions of any Security in a manner adverse to any Holder thereof, or change the Stated Maturity of any Security;

(5)

waive any default in the payment of the principal of or interest on any Security which has not been cured as provided in Section 6.02;

(6)

impair the right of Holders to institute suit for the enforcement of any payment of the principal of or interest on the Securities on or after the respective due dates therefor (after the expiration of any applicable cure period);

(7)

make any changes in Section 6.02, 6.08 or this second paragraph of Section 9.02;

(8)

change any obligation of the Company to maintain an office or agency in the place and for the purpose specified in Section 4.02 or make the Securities payable in any coin or currency other than U.S. Legal Tender;

(9)

make any change to or modify the priority between the Holders of the Securities and any other creditors of the Company; or

(10)

provide for uncertificated Securities in addition to certificated Securities.

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

After an amendment, supplement or waiver under this Section becomes effective, the Company shall mail to the Holders affected thereby a notice briefly describing the amendment, supplement or waiver.  Any failure of the Company to mail such notice, or any defect therein, shall not, however, in any way impair or affect the validity of any such amendment, supplement or waiver.

SECTION 9.03.

COMPLIANCE WITH TIA.

Every amendment to or waiver or supplement of this Indenture or the Securities shall comply with the TIA as then in effect.

SECTION 9.04.

REVOCATION AND EFFECT OF CONSENTS.  

Until an amendment, supplement or waiver becomes effective, a consent to it by a Holder is a continuing consent by the Holder and every subsequent Holder of a Security or portion of a Security that evidences the same debt as the consenting Holder’s Security, even if notation of the consent is not made on any such Security.  However, any such Holder or subsequent Holder may revoke the consent as to his Security or portion of a Security if the Trustee receives written notice of revocation before the date on which the Trustee receives an Officer’s Certificate certifying that the Holders of the requisite principal amount of Securities have consented to the amendment, supplement or waiver.  Such amendment, waiver or supplement, as the case may be, shall be effective upon receipt by the Trustee of such Officer’s Certificate.

The Company may, but shall not be obligated to, fix a record date for the purpose of determining the Holders entitled to consent to any amendment, supplement or waiver.  If a record date is fixed, then notwithstanding the last two sentences of the immediately preceding paragraph, those Persons who were Holders at the close of business on such record date (or their duly designated proxies), and only those Persons, shall be entitled to revoke any consent previously given, whether or not such Persons continue to be Holders after such record date.  No such consent shall be valid or effective for more than 90 days after such record date.

All Holders that consent to such modification, waiver or action in the manner and within the time period requested shall be entitled to receive the consideration, if any, offered for such consent.

SECTION 9.05.

NOTATION ON OR EXCHANGE OF SECURITIES.  

If an amendment, supplement or waiver changes the terms of a Security, the Trustee may require the Holder of the Security to deliver it to the Trustee.

The Trustee may place an appropriate notation on the Security about the changed terms and return it to the Holder.  Alternatively, if the Company or the Trustee has so determined, the Company in exchange for the Security may execute and the Trustee shall authenticate a new Security of like kind that reflects the changed terms.

SECTION 9.06.

TRUSTEE TO SIGN AMENDMENTS, ETC.  

The Trustee shall be entitled to receive, and shall be fully protected in relying upon, an Officer’s Certificate and an Opinion of Counsel stating that the execution of any amendment, supplement or waiver authorized pursuant to this Article IX is authorized or permitted by this Indenture.  The Trustee may, but shall not be obligated to, execute any such amendment, supplement or waiver which affects the Trustee’s own rights, duties or immunities under this Indenture or otherwise.  In signing or refusing to sign such amendment or supplement, the Trustee shall be entitled to receive and, subject to Section

7.01 hereof, shall be fully protected in relying upon, an Officer’s Certificate and an Opinion of Counsel as conclusive evidence that such amendment or supplement is authorized or permitted by this Indenture, that it is not inconsistent herewith, and that it will be valid and binding upon the Company in accordance with its terms.  The Company shall not sign an amendment or supplement until its Board of Directors approves thereof.

SECTION 9.07.

EFFECT OF SUPPLEMENTAL INDENTURES.  

Upon the execution of any supplement or amendment to this Indenture in accordance with this Article, this Indenture shall be modified in accordance therewith and such supplement or amendment shall form a part of the Indenture for all purposes; and every Holder of Securities theretofore or thereafter authenticated and delivered shall be bound thereby. Any Holder and every subsequent Holder of a Security (or portion thereof) shall be bound by any waivers authorized or obtained by this Article.

ARTICLE X.

MEETINGS OF AND ACTIONS BY HOLDERS.

SECTION 10.01.

PURPOSES FOR WHICH MEETINGS MAY BE CALLED.  

A meeting of Holders may be called at any time and from time to time pursuant to the provisions of this Article X for any of the following purposes:

(a)

to give any notice to the Company or to the Trustee, or to give any directions to the Trustee, or to waive or to consent to the waiving of any Default or Event of Default hereunder and its consequences, or to take any other action authorized to be taken by Holders pursuant to any of the provisions of Article VI;

(b)

to remove the Trustee or appoint a successor Trustee pursuant to the provisions of Article VII;

(c)

to consent to an amendment, supplement or waiver pursuant to the provisions of Section 9.02; or

(d)

to take any other action (i) authorized to be taken by or on behalf of the Holders of any specified aggregate principal amount of the Securities under any other provision of this Indenture, or authorized or permitted by law or (ii) which the Trustee deems necessary or appropriate in connection with the administration of this Indenture.

SECTION 10.02.

MANNER OF CALLING MEETINGS.  

The Trustee may at any time call a meeting of Holders to take any action specified in Section 10.01 hereof, to be held at such time and at such place in New York, New York or elsewhere as the Trustee shall determine. Notice of every meeting of Holders, setting forth the time and place of such meeting and in general terms the action proposed to be taken at such meeting, shall be mailed by the Trustee, first-class postage prepaid, to the Company, and to the Holders of the Securities at their last addresses as they shall appear on the registration books of the Registrar, not less than 10 nor more than 60 days prior to the date fixed for a meeting.

Any meeting of Holders shall be valid without notice if the Holders of all Securities then outstanding are present in Person or by proxy, or if notice is waived before or after the meeting by the Holders of all Securities outstanding, and if the Company and the Trustee are either present by duly authorized representatives or have, before or after the meeting, waived notice.

SECTION 10.03.

CALL OF MEETINGS BY COMPANY OR HOLDERS.  

In case at any time the Company, pursuant to a Certified Resolution of its Board of Directors delivered to the Trustee, or the Holders of not less than 10% in aggregate principal amount of the Securities then outstanding, shall have requested the Trustee to call a meeting of Holders to take any action specified in Section 10.01 hereof, by written request setting forth in reasonable detail the action proposed to be taken at the meeting, and the Trustee shall not have mailed the notice of such meeting within 20 days after receipt of such request, then the Company or the Holders of Securities in the amount above specified may determine the time and place in New York City or elsewhere for such meeting and may call such meeting for the purpose of taking such action, by notice given as provided in Section 10.02.

SECTION 10.04.

WHO MAY ATTEND AND VOTE AT MEETINGS.  

To be entitled to vote at any meeting of Holders, a Person shall (a) be a registered Holder of one or more Securities, or (b) be a Person appointed by an instrument in writing as proxy for the registered Holder or Holders of Securities.  The only Persons who shall be entitled to be present or to speak at any meeting of Holders shall be the Persons entitled to vote at such meeting and their counsel and any representatives of the Trustee and its counsel and any representatives of the Company and its counsel.

SECTION 10.05.

REGULATIONS MAY BE MADE BY TRUSTEE; CONDUCT OF THE MEETING; VOTING RIGHTS; ADJOURNMENT.  

Notwithstanding any other provision of this Indenture, the Trustee may make such reasonable regulations as it may deem advisable for any meeting of Holders, in regard to proof of the holding of Securities and of the appointment of proxies, and in regard to the appointment and duties of inspectors of votes, and submission and examination of proxies, certificates and other evidence of the right to vote, and such other matters concerning the conduct of the meeting as it shall think appropriate. Such regulations may fix a record date and time for determining the Holders of record of Securities entitled to vote at such meeting, in which case those and only those Persons who are Holders of Securities at the record date and time so fixed, or their proxies, shall be entitled to vote at such meeting whether or not they shall be such Holders at the time of the meeting.

The Trustee shall, by an instrument in writing, appoint a temporary chairman of the meeting, unless the meeting shall have been called by the Company or by Holders as provided in Section 10.03, in which case the Company or the Holders calling the meeting, as the case may be, shall in like manner appoint a temporary chairman. A permanent chairman and a permanent secretary of the meeting shall be elected by vote of the Holders of a majority in principal amount of the Securities represented at the meeting and entitled to vote.

At any meeting each Holder or proxy shall be entitled to vote with respect to the outstanding Securities held or represented by him; provided, however, that no vote shall be cast or counted at any meeting in respect of any Securities challenged as not outstanding and ruled by the chairman of the meeting to be not outstanding. The chairman of the meeting shall not have the right to vote other than by virtue of Securities held by him or instruments in writing as aforesaid duly designating him as the proxy to vote on behalf of other Holders. At any meeting of Holders, the presence of Persons holding or representing a majority of the principal amount of the outstanding Securities shall be sufficient for a quorum. Any meeting of Holders duly called pursuant to the provisions of Sections 10.02 or 10.03 may be adjourned from time to time by vote of the Holders of a majority in aggregate principal amount of the Securities represented at the meeting and entitled to vote, and the meeting may be held as so adjourned without further notice.

Except as limited by Sections 6.02 and 6.08 and the second paragraph of Section 9.02, any resolution presented to a meeting at which a quorum is present as aforesaid may be adopted by the affirmative vote of the Holders of a majority in principal amount of the outstanding Securities.

SECTION 10.06.

VOTING AT THE MEETING AND RECORD TO BE KEPT.  

The vote upon any resolution submitted to any meeting of Holders shall be by written ballots on which shall be subscribed the signatures of the Holders of Securities or of their representatives by proxy and the principal amount of the Securities voted by the ballot.  The permanent chairman of the meeting shall appoint two inspectors of  21   votes, who shall count all votes cast at the meeting for or against any resolution and who shall make and file with the secretary of the meeting their verified written reports in duplicate of all votes cast at the meeting. A record in duplicate of the proceedings of each meeting of Holders shall be prepared by the secretary of the meeting and there shall be attached to such record the original reports of the inspectors of votes on any vote by ballot taken thereat and affidavits by one or more Persons having knowledge of the facts, setting forth a copy of the notice of the meeting and showing that such notice was mailed as provided in Section 10.02 or Section 10.03.  The record shall be signed and verified by the affidavits of the meeting and one of the duplicates shall be delivered to the Company and the other to the Trustee to be preserved by the Trustee, the latter to have attached thereto the ballots voted at the meeting.

Any record so signed and verified shall be conclusive evidence of the matters therein stated.

SECTION 10.07.

EXERCISE OF RIGHTS OF TRUSTEE OR HOLDERS MAY NOT BE HINDERED OR DELAYED BY CALL OF MEETING.  

Nothing contained in this Article X shall be deemed or construed to authorize or permit, by reason of any call of a meeting of Holders or any rights expressly or impliedly conferred hereunder to make such call, any hindrance or delay in the exercise of any right or rights conferred upon or reserved to the Trustee or to the Holders under any of the provisions of this Indenture or of the Securities.

SECTION 10.08.

EVIDENCE OF ACTION TAKEN BY HOLDERS.  

(a)

In addition to the foregoing provisions of this Article X, any request, demand, authorization, direction, notice, consent, waiver or other action provided by this Indenture to be given or taken by Holders may be embodied in and evidenced by one or more instruments of substantially similar tenor signed by such Holders in person or by agent duly appointed in writing, or by combination of such instrument or instruments and the record of a meeting of Holders duly called and held in accordance with this Article X. Except as herein otherwise expressly provided, such action shall become effective when such instrument or instruments are delivered to the Trustee. Proof of execution of any such instrument or of a writing appointing any such agent, or of the holding by any Person of a Security, shall be sufficient for any purpose of this Indenture and (subject to Section 7.01) conclusive in favor of the Trustee and the Company, if made in the manner provided in this Article.

(b)

Any request, demand, authorization, direction, notice, consent, waiver or other action of the Holder of any Security in accordance with this Section 10.08 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.

(c)

If the Company shall solicit from the Holders any request, demand, authorization, direction, notice, consent, waiver or other action in accordance with this Section 10.08, the Company may, at its option, by or pursuant to an Officer’s Certificate delivered to the Trustee, fix in advance a record date for the determination of Holders entitled to give such request, demand, authorization, direction, notice, consent, waiver or such other act, but the Company shall have no obligation to do so. If such a record date is fixed, such request, demand, authorization, direction, notice, consent, waiver or other act may be given before or after such record date, but only those Persons who were Holders of record at the close of business on such record date shall be deemed to be Holders for the purposes of determining whether Holders of the requisite percentage of outstanding Securities have authorized or agreed or consented to such request, demand, authorization, direction, notice, consent, waiver or other act, and for that purpose the outstanding Securities shall be computed as of such record date; provided, that no such authorization, agreement or consent by the Holders on the record date shall be deemed effective unless such request, demand, authorization, direction, notice, consent, waiver or other act shall become effective pursuant to the provisions of paragraph (a) of this Section 10.08 not later than 90 days after the record date.

SECTION 10.09.

PROOF OF EXECUTION OF INSTRUMENTS AND OF HOLDING OF SECURITIES.  

The execution of any instrument by a Holder or his agent or proxy may be proved in accordance with such reasonable rules and regulations as may be prescribed by the Trustee or in such manner as shall be satisfactory to the Trustee, and the holding of Securities shall be proved by the Security register or by a certificate of the Registrar.

SECTION 10.10.

RIGHT OF REVOCATION OF ACTION TAKEN.  

At any time prior to (but not after) the evidencing to the Trustee, as provided in Section 10.08, of the taking of any action by the Holders of the percentage in aggregate principal amount of the Securities specified in this Indenture in connection with such action, any Holder of a Security the serial number of which is shown by the evidence to be included among the serial numbers of the Securities the Holders of which have consented to such action may, by filing written notice at the Corporate Trust Office and upon proof of holding as provided in this Article, revoke such action so far as concerns such Security.

After such time, such action shall be conclusive and binding upon such Holder and the Securities issued in exchange or substitution therefor, irrespective of whether or not any notation in regard thereto is made upon any such Security.

ARTICLE XI.

MISCELLANEOUS.

SECTION 11.01.

TIA CONTROLS.  

If any provision of this Indenture limits, qualifies, or conflicts with another provision which is required to be included in this Indenture by the TIA, the required provision shall control.

SECTION 11.02.

NOTICES.  

Any notices or other communications required or permitted hereunder shall be in writing, and shall be sufficiently given if made by hand delivery, by telecopier or registered or certified mail, postage prepaid, return receipt requested, addressed as follows:

if to the Company:

Toyota Motor Credit Corporation

19001 South Western Avenue 

Torrance, California 90501 

Telecopier:(310) 787-6194 

Attention: Treasury Department 

if to the Trustee:

[Name of trustee]

[address/phone]

Attention: TMCC Demand Notes  

The Company or the Trustee by written notice to the other may designate additional or different addresses as shall be furnished in writing by either party. Any notice or communication to the Company or the Trustee shall be deemed to have been given or made as of the date so delivered if personally delivered; when receipt is acknowledged, if telecopied; and five days after mailing if sent by registered or certified mail (except that a notice of change of address shall not be deemed to have been given until actually received by the addressee).

Any notice or communication mailed to a Holder shall be mailed to him by first class mail, postage prepaid, at his address as it appears on the register of the Registrar and shall be sufficiently given to such Holder if so mailed within the time prescribed. If the Company mails a notice or communication to Holders, it shall simultaneously mail a copy to the Trustee.

Failure to mail a notice or communication to a Holder or any defect in it shall not affect its sufficiency with respect to other Holders. If a notice or communication is mailed in the manner provided above, it is duly given, whether or not the addressee receives it.

SECTION 11.03.

COMMUNICATIONS BY HOLDERS WITH OTHER HOLDERS.  

Holders may communicate pursuant to TIA Section 312(b) with other Holders with respect to their rights under this Indenture or the Securities.  The Company, the Trustee, the Registrar and any other Person shall have the protection of TIA Section 312(c).

SECTION 11.04.

CERTIFICATE AND OPINION AS TO CONDITIONS PRECEDENT.  

Upon any request or application by the Company to the Trustee to take any action under this Indenture, the Company shall furnish to the Trustee:

(1)

an Officer’s Certificate (which shall include the statements set forth in Section 11.05 hereof) stating that, in the opinion of the signers, all conditions precedent, if any, provided for in this Indenture relating to the proposed action have been complied with (and, if applicable, setting forth in reasonable detail any financial calculations providing the basis of such opinion);

(2)

an Opinion of Counsel (which shall include the statements set forth in Section 11.05 hereof) stating that, in the opinion of such counsel, all such conditions precedent have been complied with; and  (3) in the case of conditions precedent compliance with which is subject to verification by accountants, the Company shall comply with Section 314(c)(3) of the Trust Indenture Act of 1939 (“TIA”).

SECTION 11.05.

STATEMENTS REQUIRED IN CERTIFICATE OR OPINION.  

Each Officer’s Certificate or Opinion of Counsel with respect to compliance with a condition or covenant provided for in this Indenture shall include:

(1)

a statement that the Person making such certificate or opinion has read such covenant or condition;

(2)

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

(3)

a statement that, in the opinion of such Person, he has made such examination or investigation as is necessary to enable him to express an informed opinion as to whether or not such covenant or condition has been complied with; and  (4) a statement as to whether or not, in the opinion of each such Person, such condition or covenant has been complied with; provided, however, that with respect to matters of fact an Opinion of Counsel may rely on an Officer’s Certificate or certificates of public officials.

At the request of the Trustee, any Officer’s Certificate or Opinion of Counsel shall address any particular condition precedent to such action.

SECTION 11.06.

RULES BY TRUSTEE, PAYING AGENT, REGISTRAR.  

The Trustee may make reasonable rules for action by or at a meeting of Holders.  The Paying Agent or Registrar may make reasonable rules for its functions.

SECTION 11.07.

LEGAL HOLIDAYS.  

If a payment date is not a Business Day at a particular place where the principal of or interest on the Securities is payable, payment may be made on the next succeeding day that is a Business Day at such place of payment, and no interest shall accrue for the intervening period.

SECTION 11.08.

GOVERNING LAW.  

THIS INDENTURE AND THE SECURITIES SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK, WITHOUT REGARD (TO THE EXTENT PERMITTED BY LAW) TO PRINCIPLES OF CONFLICTS OF LAW.

SECTION 11.09.

NO ADVERSE INTERPRETATION OF OTHER AGREEMENTS.  

This Indenture may not be used to interpret another indenture, loan or debt agreement of the Company or any of its Subsidiaries.  Any such indenture, loan or debt agreement may not be used to interpret this Indenture.

SECTION 11.10.

NO RECOURSE AGAINST OTHERS.  

A director, officer, employee, stockholder, Affiliate or incorporator, as such, of the Company shall not have any liability for any obligations of the Company under the Securities or this Indenture or for any claim based on, in respect of or by reason of such obligations or their creation. Each Holder by accepting a Security waives and releases all such Persons from such liability.

Such waivers and releases are part of the consideration for the issuance of the Securities.

SECTION 11.11.

SUCCESSORS.

All agreements of the Company in this Indenture and the Securities shall bind their successors.  All agreements of the Trustee in this Indenture shall bind its successor.

SECTION 11.12.

DUPLICATE ORIGINALS.

All parties may sign any number of copies of this Indenture.  Each signed copy shall be an original, but all of them together represent the same agreement.

SECTION 11.13.

SEVERABILITY.

In case any provision in this Indenture or in the Securities shall be invalid, illegal or enforceable, the validity, legality and enforceability of the remaining provisions shall not in any way be affected or impaired thereby, and a Holder shall have no claim thereunder for or against any party hereto.

SECTION 11.14.

HEADINGS AND TABLE OF CONTENTS.

The headings and Table of Contents in this Indenture are for convenience of reference only and shall not be deemed a part of this Indenture or limit or otherwise affect the meaning hereof.

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

		
	TOYOTA MOTOR CREDIT CORPORATION

	By:

	_____________________

Name:  

Title: 

	 
	[________],

as Trustee

	By:

	______________________

Name:

Title:

			
	STATE OF CALIFORNIA

	)

	 

	 
	)

	SS.

	COUNTY OF LOS ANGELES 

	)

	 

	 
	 
	 

On _____ ___, ____, before me, _______________________________, Notary Public, personally appeared ______________, personally known to me to be the person whose name is subscribed to the within instrument and acknowledged to me that he executed the same in his authorized capacity, and that by his signature on the instrument the person, or the entity upon behalf of which the person acted, executed the instrument.

WITNESS my hand and official seal.

___________________________

Notary Public

			
	STATE OF CALIFORNIA

	)

	 

	 
	)

	SS.

	COUNTY OF LOS ANGELES 

	 )

	 

	 
	 
	 

On _____ ___, ____, before me, ________________________________, Notary Public, personally appeared _________________________________, personally known to me to be the person whose name is subscribed to the within instrument and acknowledged to me that he executed the same in his authorized capacity, and that by his signature on the instrument the person, or the entity upon behalf of which the person acted, executed the instrument.

WITNESS my hand and official seal.

___________________________

Notary Public

ANNEX I 

TO INDENTURE 

DATED AS OF [______________]

|BETWEEN 

TOYOTA MOTOR CREDIT CORPORATION 

AND 

[______________], AS TRUSTEE 

DEFINITIONS 

The following terms have the respective meanings set forth below for all purposes of the Indenture, and Section and Article references are to Sections and Articles in the Indenture.  Capitalized terms used in the Indenture and the Securities not otherwise defined shall have the respective meanings assigned thereto in the Annex of Definitions attached to the [relevant Indenture or Trust Agreement] dated as of [____________], among [the relevant parties]. In the event of any conflict between a definition set forth both herein and in the Annex of Definitions, the definition set forth herein shall prevail.

“Affiliate” means, as to any Person, any other Person which directly or indirectly controls or is controlled by, or is under direct or indirect common control with, such 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 the meanings correlative to the foregoing. For purposes of this Indenture, the Toyota Auto Receivables Trust (and the [Indenture Trustee][Owner Trustee][Trustee] on behalf of the Trust) shall not be considered to be “Affiliates” of the Company.

“Agent” means any Registrar, Paying Agent or co-Registrar or other agent of the Company acting under the Indenture.

“Board of Directors” means the board of directors of the Company or any committee thereof authorized generally or in any particular respect to exercise the power of the board of directors of the Company.

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

“Commercial Paper Rate” means the Money Market Yield on the Calculation Date for commercial paper maturing in one month as such rate appears at 11:00 a.m. New York City time on the Calculation Date on page 133 of the Dow Jones Telerate Service (or such other page as may replace such page on that service or such other service or services as may succeed such service) which shows information for such rate as of the prior business day under the caption “Daily Commercial Paper Rates (Non financial) from the Federal Reserve”(or similar heading of like import). If by 3:00 p.m., New York City time, on the related Calculation Date such rate is not yet available, then the Commercial Paper Rate will be the Money Market Yield of the arithmetic mean of the offered rates at approximately 11:00 a.m., New York City time, on such date of three leading dealers of commercial paper in The City of New York for commercial paper having a maturity date of one month placed for an industrial issuer whose bond rating is “AA”, or the equivalent, from a nationally recognized securities rating agency; PROVIDED, HOWEVER, that if such dealers are not quoting as mentioned in this sentence, the Commercial Paper Rate for such date shall be the Commercial Paper Rate as in effect as of the immediately preceding Calculation Date. For purposes of these definitions, “Calculation Date” shall mean the Business Day preceding each of the original dates of investment in the Security (each of which is a Monthly Allocation Date), and each Monthly Allocation Date thereafter, and “Money Market Yield” shall mean a yield (expressed as a percentage rounded upwards to the nearest one hundred-thousandth of a percentage point) calculated in accordance with the following formula:

Money Market Yield = (D x 360/360-{D x M}) x 100 

where “D” refers to the applicable per annum rate for commercial paper rate quoted on a bank discount basis and expressed as a decimal, and “M” refers to the actual number of days in the interest period for which interest is being calculated.  Such Commercial Paper Rate shall be calculated on each Calculation Date by the Trustee.

“Company” means Toyota Motor Credit Corporation, a California corporation, the issuer of the Securities under the Indenture, until a successor replaces it pursuant to the Indenture and thereafter means such successor.

“Corporate Trust Office” means an office of the Trustee at which at any particular time its corporate trust business shall be administered, which at the date of execution of the Indenture is located at 111 East Wacker Drive, Suite 3000, Chicago, Illinois 60601, or at any other such address as the Trustee may designate from time to time by notice to the Holders.

“Date of Investment” means each Monthly Allocation Date on which an amount is invested in the TMCC Demand Notes.

“Default” means any event that is or with the passing of time or giving of notice or both would be an Event of Default.

“Defaulted Interest” has the meaning specified in Section 2.12.

“Event of Default” has the meaning specified in Section 6.01.

“GAAP” means generally accepted accounting principles in the United States which are applied by the Company as of the date of the Indenture.

“Governmental Authority” means any nation or government, any state or other political subdivision thereof, any central bank (or similar monetary or regulatory authority) thereof, any entity exercising executive, legislative, judicial, regulatory or administrative functions of or pertaining to government, and any corporation or other entity owned or controlled, through stock or capital ownership or otherwise, by any of the foregoing.

“Holder” with respect to the TMCC Demand Notes, means a Person in possession of a TMCC Demand Note, or a Person deemed an owner thereof pursuant to Section 2.13 of the Indenture.

“Indenture” means the Indenture dated as of [_________] between the Company and [____________], as trustee, relating to $[__________] aggregate principal amount of the Company’s TMCC Demand Notes, including Exhibit A and this Annex I thereto, as the same may be amended or supplemented from time to time in accordance with its terms.

“Interest Payment Date” is any date on which interest is payable as set forth in the Security.

“Maturity”, with respect to any Security, means the date on which the principal (and the accrued interest thereon to but excluding the date on which such principal is paid) of such Security or an installment of principal (and the accrued interest thereon to the date on which such principal is paid) becomes due and payable as provided in or pursuant to the Indenture, whether (i) at the Stated Maturity Date thereof, (ii) on the date specified in a demand (as evidenced by the delivery to the Trustee of a demand in the form of Exhibit B to the Indenture) for the payment of 100% of the outstanding principal amount of the TMCC Demand Notes by any Holder following (x) the occurrence of a Swap Termination or (y) in connection with a reduction of the rating of the Company’s short-term debt to a rating less than “A-1+” by Standard & Poor’s or “P-1” by Moody’s or a downgrade of the Company’s long-term debt to a rating less than “AA” by Standard & Poor’s or “Aa3” by Moody’s in the circumstances provided for in Section 4.01 of the Indenture or (iii) upon declaration of acceleration upon the occurrence of an Event of Default hereunder. A demand duly delivered to the Trustee in accordance with clause (ii) above will cause the entire principal amount (and the accrued interest thereon to but excluding the date on which such principal is paid) of the outstanding Securities to become due and payable on the date specified in such demand. A Maturity pursuant to clause (i) or (ii) of this definition, in and of itself, shall not be an Event of Default or Default hereunder.

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

“Officer’s Certificate” means a certificate signed by any Officer of the Company, and otherwise complying with the applicable requirements of Sections 11.04 and 11.05 of the Indenture.

“Opinion of Counsel” means a written opinion from legal counsel who, in the case of an Opinion of Counsel addressed to the Trustee, is reasonably acceptable to the Trustee. The counsel may be an employee of or counsel to the Company. Each opinion shall comply with the applicable requirements of Sections 11.04 and 11.05 of the Indenture.

“Paying Agent” has the meaning specified in Section 4.02.

“Person” means an individual, partnership, corporation, business trust, joint stock company, trust, unincorporated association, joint venture or governmental authority.

“Predecessor Security” of any particular Security means every previous Security evidencing all or a portion of the same debt as that evidenced by such particular Security. For purposes of this definition, any Security authenticated and delivered under Section 2.07 in exchange for or in lieu of a defaced, mutilated, lost, destroyed or stolen Security shall be deemed to evidence the same debt as the defaced, mutilated, lost, destroyed or stolen Security.

“Record Date” means the day immediately preceding the related Certificate Payment Date (whether or not a Business Day).

“Registrar” has the meaning specified in Section 4.02.

“Required Rate” with respect to any Monthly Allocation Date and the principal amount outstanding as set forth on any of the Schedules attached to a Security, means a per annum rate of interest which shall be calculated as follows: first, calculate the amount of interest that would have accrued on (i) the Interest Demand Note at the Commercial Paper Rate, as such rate shall be adjusted monthly on the second Business Day preceding each Monthly Allocation Date; (ii) on any Security representing the investment of any amount allocated in reduction of the Outstanding Amount of the relevant class or classes of [Notes][Certificates], at ____% per annum; in each case for the number of days in each Interest Period (as defined in the [specify relevant Indenture or Trust Agreement or Pooling and Servicing Agreement]) for such investment for such Class on the basis of months assumed to consist of 30 days and years assumed to consist of 360 days. Second, express the amount of interest so accrued as a per annum rate on the amount invested in such Security for the period from the date of investment in such Security to but excluding the Maturity of such Security, on the basis of months assumed to consist of 30 days and years assumed to consist of 360 days.

“Securities” means the Company’s TMCC Demand Notes.

“Securities Act” means the Securities Act of 1933, as amended, or any successor thereto, and the regulations promulgated thereunder.

“Special Record Date” has the meaning specified in Section 2.12.

“Stated Maturity Date” when used with respect to the principal on the Securities means the date specified on the Schedule attached to the certificate representing such Security as the fixed date on which the principal thereof is due and payable, which date shall be (i) with respect to the Interest Demand Note, the Business Day preceding the [Note][Certificate] Payment Date that immediately follows the related Date of Investment; and (ii) with respect to any Security representing the investment of any amount allocated in reduction of the [Outstanding Amount of the relevant class or classes of Notes or Certificates], the Business Day preceding the [specify relevant Final Scheduled Distribution Date], as applicable.

“Subsidiary” means any Corporation of which at the time of determination the Company or one or more Subsidiaries owns or controls directly or indirectly more than 50% of the shares of Voting Stock.

“TIA” and “Trust Indenture Act” mean the Trust Indenture Act of 1939, as amended, and any reference herein to the Trust Indenture Act or a particular provision thereof shall mean such Act or provision, as the case may be, as amended or replaced from time to time or as supplemented from time to time by rules or regulations adopted by the Commission under or in furtherance of the purposes of such Act or provision, as the case may be.

“Trustee” means [_______________], as trustee under the Indenture until a successor replaces it in accordance with the provisions of the Indenture, and thereafter means such successor.

“Trust Officer,” when used with respect to the Trustee, means any officer within the Corporate Trust Office of the Trustee, or any other officer of the Trustee customarily performing functions similar to those performed by the persons who at the time shall be such officers or to whom any corporate trust matter is referred because of such officer’s knowledge and familiarity with the particular subject.

“United States” and “U.S.” each mean the United States of America.

“U.S. Legal Tender” means such coin or currency of the United States of America as at the time of payment shall be legal tender for the payment of public and private debts.

EXHIBIT A 

The trustee will not authenticate or deliver this security in connection with any registration of transfer to any person unless the trustee has received a certification from the transferring holder to the effect that (i) it is no longer the [owner trustee][indenture trustee][trustee] of the Toyota auto receivables trust and the proposed transferee is its successor in such capacity, or (ii) a swap termination has occurred and such proposed transfer is made in contemplation of a liquidation of the trust assets.

FORM OF FACE OF SECURITY 

TOYOTA MOTOR CREDIT CORPORATION 

TMCC DEMAND NOTES

For amounts allocated as [specify relevant Interest Distributable Amounts], [specify relevant Interest Carryover Shortfalls] For amounts allocated to make applications in reduction of the Outstanding Amount of [specify relevant classes of Notes or Certificates]

No.  ___

Toyota Motor Credit Corporation, a California corporation (the “Company,” which term includes any successor corporation under the Indenture referred to on the reverse hereof), for value received, hereby promises to pay to [________________], in its capacity as Toyota Auto Receivables [Owner Trustee][Indenture Trustee][Trustee] under the [specify relevant Indenture or Trust Agreement] dated as of [_________], or registered assigns, the principal sum of U.S. Dollars as shall be set forth on the Schedule attached hereto as of the date of Maturity, and to pay interest on the outstanding amount of principal, as set forth on the Schedule from time to time, from the date such principal amount is originally issued and outstanding to the Business Day next preceding the relevant [Note][Certificate] Payment Date immediately following the related Date of Investment (or from the most recent Interest Payment Date to which interest has been paid or duly provided for to the Business Day next preceding the relevant Certificate Payment Date immediately following such Interest Payment Date)1, (each an “Interest Payment Date”), at the then applicable Required Rate as such rate shall be adjusted on each Calculation Date, 2to but excluding the date on which the principal hereof is paid or duly provided for. Interest on this Security will 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 date that is one day (whether or not a Business Day), next preceding such Interest Payment Date (each, a “Record Date”). Any such interest which is payable, but is not punctually paid or duly provided for, on any Interest Payment Date, shall forthwith cease to be payable to the Holder on such Record Date by virtue of having been such Holder, and, at the election of the Company, (i) may 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 the Holder of this Security not less than 10 days prior to such Special Record Date or (ii) may be paid in any other lawful manner, all as more fully provided in the Indenture. Payment of the principal and interest on this Security will be made at the office or agency of the Company maintained for that purpose in Chicago, Illinois in such coin or currency of the United States of America as at the time of payment is legal tender for payment of public and private debts; provided, however, that, except as otherwise provided in the Indenture, payment of interest may be made by check mailed to the address of the Person entitled thereto as such address shall appear in the register of Securities maintained by the Registrar.

The date of Maturity with respect to the principal (and the accrued interest thereon to, but excluding, the date on which such principal is paid) amount evidenced by this Security shall be, the earlier of (x) the Targeted Maturity Date for the [specify relevant classes of Notes or Certificates3 ]the [____] [Note][Certificate] [____] Payment Date [____] immediately following the related Date of Investment4, (y) the date specified in a demand (as evidenced by the delivery to the Trustee of a demand in the form of Exhibit B to the Indenture) for the payment of 100% of the outstanding principal amount of the TMCC Demand Notes by any Holder following the occurrence of a Swap Termination or (z) the date upon which the outstanding Securities become due and payable due to the declaration of acceleration upon the occurrence of an Event of Default under the terms of the Indenture.

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.

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

			
	 
	TOYOTA MOTOR CREDIT CORPORATION

	Dated:

	By:

	____________________

Name:  

Title: 

1 Insert for TMCC Demand Notes issued in connection with the investment of  amounts allocated in reduction of the Outstanding Amount of [specify  relevant Classes of Note or Certificates].

2 Insert for TMCC Demand Notes issued in connection with the investment of  any [specify relevant Interest Distributable Amounts], [specify relevant  Interest Carryover Shortfall Amounts].

3 Insert for TMCC Demand Notes issued in connection with the investment of  amounts allocated in reduction of the Outstanding Amount of [specify  relevant Classes of Notes or Certificates].

4 Insert for TMCC Demand Notes issued in connection with the investment of  any [specify relevant Interest Distributable Amounts], [specify relevant  Interest Carryover Shortfall Amounts].

TRUSTEE’S CERTIFICATE OF AUTHENTICATION 

This is one of the Securities described in the within-mentioned Indenture.

			
	[_______________],

	 
	[_______________],

	AS TRUSTEE

	 
	AS TRUSTEE

	 
	 
	 

	 
	 
	 

	 
	 
	 

	OR

	 
	 

	 
	 
	 

	 
	By:

	______________________________

	 
	 
	Authorized Signatory

	 
	 
	 

	 
	By:

	______________________________

	 
	 
	as Authenticating Agent

	 
	 
	 

	 
	By:

	______________________________

	 
	 
	Authorized Signatory

FORM OF REVERSE OF SECURITY 

TOYOTA MOTOR CREDIT CORPORATION 

TMCC DEMAND NOTES 

1. INDENTURE.

This Security is one of the duly authorized issue of the Company’s TMCC Demand Notes (the “Securities”), issued by the Company under an Indenture dated as of [_______________] (as the same may be amended or supplemented from time to time, the “Indenture”) between the Company and [_______________], as Trustee (the “Trustee,” which term includes any successor trustee under the Indenture).

The Securities are unsecured general obligations of the Company, limited to an aggregate principal amount of $[__________], except as otherwise provided in the Indenture.

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

The Company shall furnish to any Holder upon written request and without charge a copy of the Indenture.  Requests may be made to: Toyota Motor Credit Corporation, Attention: Treasury Department.

2. CAPITALIZED TERMS.

Capitalized terms used in this Security have the meanings assigned to them in the Indenture unless otherwise defined in this Security.

3. PAYING AGENT AND REGISTRAR.

The Trustee has been appointed to act as initial Paying Agent and Registrar for the Securities in [city].  The Company may appoint additional Paying Agents and co-Registrars, and may change any Paying Agent, Registrar or co-Registrar, all as provided in the Indenture.  Except as otherwise provided in the Indenture, the Trustee, the Company or any of its Subsidiaries may act as Paying Agent, Registrar or co-Registrar.

4. REDEMPTION.

The Securities are not redeemable prior to their respective Maturities at the option of the Company, in whole or from time to time in part.

5. DENOMINATIONS; TRANSFER; EXCHANGE.

The Securities are issuable only in registered form, without coupons, in denominations of at least U.S. $0.01 and integral multiples of $0.01 in excess thereof.  The Securities may be transferred only in accordance with the provisions of Section 2.06(a) of the Indenture.  A Holder may register the exchange of any Security only in accordance with the provisions of Section 2.06 of the Indenture.  The Registrar or a co-Registrar may require a Holder, among other things, to furnish appropriate endorsements and transfer documents in form satisfactory to the Registrar and the Trustee.  No service charge shall be made to a Holder for any registration of transfer or exchange, but the Company may require payment of a sum sufficient to cover any transfer tax or similar governmental charge payable in connection therewith, except as otherwise provided in the Indenture.  The Company will maintain in Chicago, Illinois, an office or agency where Securities may be surrendered for registration of transfer or exchange.

6. PERSONS DEEMED OWNERS.

Prior to due presentment of a Security for registration of transfer, the Company, the Trustee and any Agent may treat the Person in whose name such Security is registered as the owner of such Security for all purposes.

7. UNCLAIMED MONEY.

The Trustee and the Paying Agent shall pay to the Company upon written request any U.S. Legal Tender held by them for the payment of the principal of or interest on the Securities which remains unclaimed for two years after the date on which such payment shall have become due.  After payment to the Company as aforesaid, Holders entitled to such moneys must look to the Company for such payment unless an applicable abandoned property law designates another Person.

8.  DISCHARGE PRIOR TO MATURITY.

If the Company irrevocably deposits with the Trustee U.S. Legal Tender sufficient to pay the principal of and interest on the Securities to maturity, or if all the outstanding Securities have been delivered to the Trustee for cancellation, and in either case if the Company complies with the other provisions of the Indenture relating thereto, the Company will be discharged from certain provisions of the Indenture and the Securities, excluding its obligation to pay the principal of and interest on the Securities.

9.  AMENDMENT; SUPPLEMENT; WAIVER.

Subject to certain exceptions and limitations set forth in the Indenture, the Indenture or the Securities may be amended or supplemented with the consent of the Holders of at least a majority in aggregate principal amount of the Securities then outstanding, and compliance with any provision or obligation under the Indenture or the Securities may be waived with the consent of the Holders of a majority in aggregate principal amount of the Securities then outstanding. The Indenture also permits the Company and the Trustee, without notice to or consent of any Holder, to enter into certain amendments or supplements to the Indenture or the Securities.

10. DEFAULTS AND REMEDIES.

If an Event of Default occurs and is continuing, the Trustee, or the Holders of at least 25% in principal amount of the outstanding Securities, may declare all unpaid principal of and accrued interest on the Securities to be due and payable immediately in the manner and with the effect provided in the Indenture. The Indenture provides that the Holders of a majority in principal amount of the Securities outstanding may rescind an acceleration of the Securities and its consequences on the terms and subject to the conditions set forth in the Indenture. The Indenture also provides that the Holders of a majority in principal amount of the outstanding Securities may waive an existing Default or Event of Default and its consequences except, among other things, a default in the payment of the principal of or interest on any of the Securities which has not been cured as provided in Section 6.02.

11. RESERVED.

12. NO RECOURSE AGAINST OTHERS.

A director, officer, employee, stockholder or incorporator, as such, of the Company shall not have any liability for any obligations of the Company under the Securities or the Indenture or for any claim based on, in respect of or by reason of such obligations or their creation. Each Holder by accepting a Security waives and releases all such Persons from such liability. Such waiver and release are part of the consideration for the issuance of the Securities.

13. AUTHENTICATION.

This Security and the entries on the Schedule shall not be valid unless the Trustee or an authenticating agent has signed the certificate of authentication on this Security and such Schedule by manual signature or has satisfied the provisions set forth in the last paragraph of Section 2.02 of the Indenture.

14. GOVERNING LAW; HEADINGS.

THIS SECURITY SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK WITHOUT REGARD (TO THE EXTENT PERMITTED BY LAW) TO PRINCIPLES OF CONFLICTS OF LAW.

The headings in this Security are for convenience of reference only and shall not be deemed a part of this Security or limit or otherwise affect the meaning hereof.

FORM OF ASSIGNMENT 

FOR VALUE RECEIVED the undersigned registered Holder hereby sell(s), assign(s) and transfer(s) unto (Insert Taxpayer Identification No.) ________________

________________________________________________________________________

________________________________________________________________________

(Please print or typewrite name and address including postal zip code of assignee)

	
	________________________________________________________________________

	 

the within Security and all rights thereunder, hereby irrevocably constituting and appointing _______________ attorney to transfer said Security on the books of the Company with full power of substitution in the premises.

SCHEDULE TO 

TMCC DEMAND NOTE 

NUMBER _____________

MAXIMUM AMOUNT $ ________________

AMOUNTS INVESTED AMOUNTS PAID  ----------------------------------------  ----------

									
	 
	AMOUNTS INVESTED

	 
	AMOUNTS PAID

	DATE OF INVESTMENT OR PAYMENT

	AMOUNT OF INVESTMENT

	AGGREGATE AMOUNT INVESTED

	CURRENT REQUIRED DATE

	STATED MATURITY DATE

	PRINCIPAL AMOUNT

	INTEREST AMOUNT

	PRINCIPAL BALANCE OUTSTANDING

	INITIAL OF TRUSTEE

EXHIBIT B 

FORM OF DEMAND  

The undersigned hereby certifies to [_______________], in its capacity as trustee (the “Trustee”) under the Indenture dated as of [_______________] (the “Indenture”) between the Trustee and Toyota Motor Credit Corporation, that it is the holder of all or a portion of the Securities issued and outstanding under the Indenture, and that pursuant to the terms of the Indenture, it is demanding the payment in full of the principal (plus accrued interest thereon to the date specified below) of the outstanding Securities in connection with:

the occurrence of a Swap Termination (which I hereby certify is effective as of) ___________________ 

the downgrade of the Company’s short-term debt to a rating less than “A-1+” by Standard & Poor’s or “P-1” by Moody’s or a downgrade of the Company’s long-term debt to a rating less than “AA” by Standard & Poor’s or “Aa3” by Moody’s (and I hereby certify that I have obtained the advice of __________________________________ pursuant to Section 4.01 of the Indenture and have received the advice required by such Section concerning ratings downgrades from ____________________________________________________ of Standard & Poor’s and from _____________________________ of Moody’s Investors Service  

The date on which such principal and accrued interest is to be paid is:

			
	Dated:

	By:

	__________________________________________________Exhibit 10

Exhibit 10.1

October 27, 2009

 

Mr. Steven C. Speak

Re: Retirement Agreement

Dear Mr. Speak:

This letter agreement (the "Retirement Agreement") is to confirm our discussions that effective as of the date of this letter, you are no longer an officer of Cytec Industries Inc. (together with its direct and indirect subsidiaries, the "Company"), a member of the Cytec Executive Leadership Team or an officer or director of Cytec Engineered Materials Inc.  

If you do not sign this Retirement Agreement within 21 days after the above date, or if you sign and subsequently revoke this Retirement Agreement within the time period specified in Section XIV below, you will not be eligible to receive any compensation or benefits under this Retirement Agreement or the Executive Income Continuity Plan (the "Plan") and your status as an employee of the Company will terminate 21 days after the above date, or if different, the date you revoke this Retirement Agreement. The benefits available to you under the Plan, and the additional benefits we are offering to provide you in excess of those specified in the Plan, are all set forth in this Retirement Agreement.

	Official Termination Date.

Your status as an employee of the Company will terminate effective October 31, 2009 (your "Official Termination Date").  Except as otherwise set forth in this Retirement Agreement, you will continue to receive pay and benefits through your Official Termination Date in accordance with existing Company practices, policies and benefit plans.  You will not receive any additional grants of long-term incentives, including, but not limited to, stock options and performance awards.

Your last day of work in the office will be October 27, 2009.  You agree that through your Official Termination Date you will on reasonable advance notice consult by telephone and email with employees and agents of the Company regarding the business of the Company.  

II.  Executive Income Continuity Plan:

A copy of the Plan as in effect is attached hereto as Exhibit A.  Due to the circumstances of the termination of your employment, you will receive the benefits specified in the Plan (as described herein) applicable to a member of the Plan whose employment is terminated without "Cause" provided you do not revoke this Retirement Agreement within the time period specified in Section XIV below. 

Under Section 5 of the Plan, you will be entitled to an income continuation benefit of $622,674 (equivalent to one year's salary plus your target bonus for one year multiplied by your average percentage of par (121.65%) bonus for the two preceding fiscal years) payable in 12 equal monthly installments.  Under Section 5(c) of the Plan, the first six monthly payments will be paid to you in a lump sum on the first business day of the seventh month following your Official Termination Date, i.e., May 3, 2010.  The last six monthly payments will be paid to you in arrears on or about the last business day of each month.  These payments are subject to federal, state and other local applicable taxes and withholdings.  In addition, the Company will deduct from these amounts any outstanding balances due on Company credit cards issued to you; the value of any Company property which you have not returned to the Company as of your Official Termination Date; and any other amounts owed by you to the Company as of such date, including if you elect benefits continuation, your share of the cost of Company provided benefits determined consistently with charges to other Company employees, as in effect from time to time.  

The Company will reimburse you for all amounts it is required to reimburse you under Section 6 of the Plan.  In addition, the Company will reimburse you up to $2,000 for your legal fees to review this Retirement Agreement.

In accordance with Section 8 of the Plan, your excess personal liability insurance benefits, group life insurance benefits, comprehensive Medical, Dental, Vision and AD&D benefits and Ayco financial consulting and tax preparation benefits will be maintained for two years following your Official Termination Date on the same basis as for other employees eligible for such benefits.  The period of time during which your benefits are continued under this provision is included in and is not in addition to the 18 month continuation period provided for under "COBRA".  At the end of this period the appropriate conversion notices or other applications with respect to employee benefits will be provided to you.  Accrual of benefits under the Retirement Plan, Savings and Profit Sharing Plan and related supplemental plans, and Spending Accounts, as well as participation in disability coverage, ends at your Official Termination Date.  

III.  Vacation Pay

You will be paid $35,000 for your remaining accrued and unused 2009 vacation days within 10 business days after your Official Termination Date. 

IV.  Stock Options and SARs

On your Official Termination Date, all of your then currently exercisable options and SARs (collectively, "Options") will have their expiration date changed to October 31, 2010.  One-third of the Options granted to you in 2007, two-thirds of the Options granted to you in 2008 and all of the Options granted to you in 2009 will not be exercisable on your Official Termination Date and will accordingly be forfeited on that date.  The forfeited amounts represent Options with respect to 6,000, 13,334 and 27,000 shares respectively.

V.  Performance Cash Awards.

You have three outstanding Performance Awards.  All three of these awards will be forfeited on your Official Termination Date.  

VI.  Deferred Stock Awards

You currently hold Deferred Stock Awards aggregating approximately 17,710 shares.  In accordance with the terms of the 1993 Stock Award and Incentive Plan and your previous elections, these shares will be paid to you in a lump sum on the first business day of the seventh month following your Official Termination Date, i.e., May 3, 2010. 

VII.  Supplemental Savings and Profit Sharing Plan

As of September 30, 2009, you had a balance of approximately $515,000 in the Supplemental Savings and Profit Sharing Plan.  In accordance with the terms of the Supplemental Savings and Profit Sharing Plan and your previous elections, all of your plan balance except the portion relating to your 2009 contributions will be paid to you in a lump sum on the first business day of the seventh month following your Official Termination Date, i.e., May 3, 2010.  The portion of your balance relating to your 2009 contributions will be paid to you in 5 annual installments: 1/5 of the then remaining balance on May 3, 2010; 1/4 on November 1, 2011; 1/3 on November 1, 2012; 1/2 on November 1, 2013 and the remaining balance on November 1, 2014.

VIII. Incentive Compensation

If you do not revoke this Retirement Agreement during the time period specified in Section XIV below, the Compensation and Management Development Committee will authorize the payment to you of an incentive compensation award for 2009 of $80,000 based on your salary through October 31, 2009.  This amount will be paid to you at the same time as 2009 incentive compensation awards are paid to other Executive Officers, which is anticipated to be in February or March of 2010.

IX.  Consulting Agreement

You and the Company agree to execute the consulting agreement in the form attached hereto as Exhibit B (the "Consulting Agreement") promptly after you execute this Agreement and the time period for you to revoke this Agreement pursuant to Section XIV below has expired.

X.Release

In return for the payments and benefits described in this Retirement Agreement, you do hereby waive and do hereby release, knowingly and willingly, the Company, its subsidiaries, successors and predecessors, and its and their employees, agents, directors and officers, past and present (collectively, the "Releasees"), from any and all claims of any nature whatsoever you have arising out of your employment and/or the termination of your employment with the Company, known or unknown, including but not limited to any claims you may have under federal, state or local employment, labor, or anti-discrimination laws, statutes and case law and specifically claims arising under the federal Age Discrimination in Employment Act, the Civil Rights Acts of 1866, 1964 and 1991, as amended, the Americans with Disabilities Act, Executive Order 11246, the Employee Retirement Income Security Act, the Family and Medical Leave Act, the Rehabilitation Act of 1973, the Fair Labor Standards Act, the Labor-Management Relations Act, the Equal Pay Act and the Worker Adjustment Retraining and Notification Act, the Fair Credit Reporting Act, the Immigration Reform Control Act, the Internal Revenue Code, the Occupational Safety and Health Act, the Uniformed Services Employment and Reemployment Rights Act, the  New Jersey Law Against Discrimination and any other applicable federal, state, county or local law, ordinance or statute including claims for attorneys' fees, provided, however, that this release does not apply to claims for benefits under Company-sponsored benefit plans covered under the Employee Retirement Income Security Act; does not apply to claims arising out of obligations expressly undertaken in this Retirement Agreement and does not apply to claims arising out of any act or omission occurring after the date you sign this Retirement Agreement.  Any rights to benefits under Company-sponsored benefit plans are governed exclusively by the written plan documents.  You acknowledge and understand that this paragraph is intended to prevent you from making any claims against any Releasee (and individuals acting for any Releasee) regarding any matter or incident up to the date you execute this Retirement Agreement.  In exchange for the payments and benefits described in this Retirement Agreement, except as otherwise expressly set forth in this Retirement Agreement, you agree and covenant not to sue and not to bring an action of any kind against any Releasee, its past, present and future parent corporations, its past, present and future divisions, subsidiaries, affiliates and related companies and their successors and assigns and all past, present and future directors, officers, employees and agents of these entities, personally and as directors, officers, employees and agents, arising out of your employment and/or your Retirement, before any court or other forum.

If you breach the terms of the release and waiver contained in the preceding paragraph, then as liquidated damages you agree to repay the Company all amounts paid to you pursuant to the provisions of the Plan and Sections IV and VIII of this Retirement Agreement and the Consulting Agreement within five days of bringing suit and that any additional payments due you under the terms of the Plan and Sections IV and VIII of this Retirement Agreement and the Consulting Agreement.  You acknowledge and agree that the liquidated damages are fair and reasonable, and that the Company would not be able to quantify its damages absent this liquidated damages provision.  Moreover, if you breach the terms of the release and waiver contained in the preceding paragraph by bringing suit, you agree to pay the attorneys' fees each Releasee incurs in defending against such suit. 

If you bring suit and fail to repay the amounts paid to you pursuant to the provisions of the Plan, you hereby consent to the entry of judgment against you and in favor of the Company in the gross amount of such payments.

If you do not revoke this Retirement Agreement within the revocation period described below, you will obtain the benefits pursuant to the terms of the Plan and this Agreement.  If you subsequently revoke this Retirement Agreement within the revocation period described below, you will forego the benefits provided pursuant to the terms of the Plan and the additional benefits specified in Sections IV and VIII of this Retirement Agreement, but you will obtain the other benefits provided under applicable law, including the right to extend, for a charge, certain employee benefits and any notice period pay to which you are entitled.   

XI.  Non-Competition Agreement

For purposes of this Section XI, 

	 "Affiliate" means any entity controlling, controlled by or under common control with a Prohibited Company.
	"Competing Business Segment" means any subsidiary, division or business unit of any entity which researches and develops, manufactures, sells or distributes carbon fibers, advanced composites or aerospace adhesives, provided that "Competing Business Segment" shall not include any subsidiary, division or business unit of a Prohibited Company.
	"Non-Compete Period" means the period from the date of this Retirement Agreement through the second anniversary of your Official Termination Date.
	"Prohibited Company" means ACG, Gurit, Hexcel, SGL, Tencate or Toray, or any of their Affiliates or any successor to substantially all of the business of ACG, Gurit, Hexcel, SGL, Tencate or Toray.
	"Restricted Activities" means the development or oversight of marketing, research and development, operations, sales, strategy or finance for any Prohibited Company in any capacity, including, but not limited to, as a director, officer, employee, advisor, consultant or agent or for any Restricted Business as an officer, employee, advisor, consultant or agent.
	"Restricted Business" means any entity which researches and develops, manufactures, sells or distributes: carbon fibers for aerospace applications, continuously reinforced thermosetting prepreg composites for aerospace applications, continuously reinforced carbon fiber thermoplastic prepregs for primary or secondary aerospace structures, structural film adhesives for aerospace applications, primers for aerospace applications or ablatives.

In consideration of the amounts payable to you under the terms of the Plan and the additional amounts payable to you under the terms of this Retirement Agreement to the extent such additional amounts are in excess of the amounts the Company is required to pay to you under applicable law, you agree that during the Non-Compete Period you will not without the prior written consent of the CEO of the Company engage in any Restricted Activities for any Prohibited Company or any Restricted Business anywhere in the world.  Notwithstanding the foregoing, you shall not be prohibited by this Section XI from performing services for any entity (other than Prohibited Companies) that has a Competing Business Segment provided you do not engage in any Restricted Activities with respect to the Competing Business Segment and you notify the CEO of the Company of the nature of any such services you will be performing for such entity a reasonable time prior to beginning performance of such services.

You agree that during the Non-Compete Period you will not, without the prior written consent of the CEO of the Company, solicit or attempt to solicit for employment for or on behalf of any entity, any person who on the date of this Retirement Agreement was employed by the Company as a manager or executive and with whom you had professional interaction after January 1, 2009.

You acknowledge that the restrictions, prohibitions, and other provisions of this Section XI are reasonable, fair and equitable in scope, terms and duration, and are necessary to provide the Company with reasonable protection for its interests.

You acknowledge that you have received or will receive and had access or will have access to confidential information and trade secrets of the Company, including, but not limited to, confidential and secret business and marketing plans, strategies, research developments and manufacturing knowhow.  You agree that these trade secrets and confidential information have provided the Company with material advantages over its competitors in the past and will provide the Company a material advantage in the future.  You agree that the Company would be permanently and irreparably harmed if these trade secrets and confidential information were disclosed in any manner to a competitor of the Company.  You agree that the provisions of your employment agreement providing you will not disclose or use such information remain in effect and that you will abide by such provisions.  

You agree that, were you to violate the terms of this Section XI by performing Restricted Activities for a Restricted Business during the Non-Compete Period, you would inevitably disclose confidential information and trade secrets held by the Company and known to you.  

You agree that if you breach or threaten to breach any of the provisions of this Section XI, the Company shall be entitled as of right to specific performance and injunctive relief as remedies from any court having equity jurisdiction for any such breach or threatened breach.   It is specifically understood and agreed that any such breach or threatened breach will cause irreparable injury to the Company and that money damages will not provide an adequate remedy to the Company.  The Company's rights and remedies hereunder shall be in addition to, and not in lieu of, any other rights and remedies available to the Company at law or in equity.

XII.  Non-Disparagement Agreement

For a period of three years from the date of this Retirement Agreement, you agree you will not make any written or oral disparaging, defamatory or derogatory statements concerning the Company, its subsidiaries, their respective businesses, products, services and policies, and their respective current officers, employees and directors, or any person who has served as any such officer, employee or director within the previous year.  For a period of three years from the date of this Retirement Agreement, the Company agrees that neither it nor any of its executive officers will make any written or oral disparaging, defamatory or derogatory statements concerning you to any third parties.  It is agreed that statements of any employees of the Company other than its executive officers will not be imputed to the Company unless approved or directed by an executive officer of the Company.  

XIII. Miscellaneous

If any court of competent jurisdiction determines that any portion of Section XI of this Agreement is unenforceable because of the duration or geographic scope of the provision, such court shall have the power to reduce the duration or scope of such provision as the case may be, and, in its reduced form, such provision shall then be enforceable and shall be enforced.  Notwithstanding the foregoing, should any of the provisions of this Retirement Agreement be invalidated by a court of competent jurisdiction without exercising its power to amend the provision to make it enforceable, the parties agree that this shall not affect the enforceability of the other provisions of this Retirement Agreement and the parties shall negotiate the invalid provision or provisions in good faith to effectuate its or their purpose and to conform the provision or provisions to law.  This Retirement Agreement may be amended or modified only by an agreement in writing, signed by both parties.

This Retirement Agreement shall be governed by and construed in accordance with the laws of the State of New Jersey.  The parties agree that any and all disputes arising under this Agreement are to be resolved exclusively by courts sitting in New Jersey.  Each party irrevocably consents to the jurisdiction of such courts and agrees not to assert by way of motion, as a defense, or otherwise, any claim that such party is not subject personally to the jurisdiction of such court, that the action, suit or proceeding is brought in an inconvenient forum, that the venue of the action, suit or proceeding is improper, or that this Retirement Agreement may not be enforced in or by such court.   

XIV. Acknowledgement and Certification

You, the employee, acknowledge and certify that you:

	have read and understand all of the terms of this Retirement Agreement and do not rely on any representation or statement, written or oral, not set forth in this Retirement Agreement;

	have had a reasonable period of time to consider this Retirement Agreement;

	are signing this Retirement Agreement knowingly and voluntarily;

	have been advised to consult with an attorney before signing this Retirement Agreement;

	have the right to consider the terms of this Retirement Agreement for at least 21 days and if you take fewer than 21 days to review this Retirement Agreement, you hereby waive any and all rights to the balance of the 21-day review period; and

	have the right to revoke this Retirement Agreement within seven days after signing it, in which event this Retirement Agreement becomes null and void in its entirety.

 
THIS IS A LEGALLY ENFORCEABLE DOCUMENT.

If this Retirement Agreement is acceptable to you, please indicate by signing the enclosed copy of this Retirement Agreement and returning it to me as outlined above. If you have any questions concerning the foregoing, please contact me.

Sincerely,

/s/ Roy Smith

Roy Smith

VP, General Counsel & Secretary

 

 

Accepted and Agreed:

/s/ Steven C. Speak________________10/30/2009

Steven C. Speak                        Date

 

_X__  I elect to have my current benefits continue for the two year period specified in Section I. 

____  I decline benefit continuation during the two year period specified in Section I.

Exhibit A

CYTEC INDUSTRIES INC.

Executive Income Continuity Plan

(as amended and restated October 15, 2009)

 

1.Purpose.  The purpose of this Executive Income Continuity Plan (the "Plan") is to retain the services of executives in the senior management group of Cytec Industries Inc. (the "Company") and its subsidiaries and to reinforce and encourage the continuing attention, dedication and loyalty of these executives without the distraction of concern over the possibility of involuntary or constructive termination of employment resulting from unforeseen developments, by providing income continuity for a limited period.

The Plan, as amended and restated, is intended to comply with Section 409A of the Internal Revenue Code of 1986, as amended (the "Code"), the regulations thereunder and related guidance issued by the Internal Revenue Service ("IRS").   

2.Definitions.  Unless the context otherwise requires, the following terms shall have the meanings respectively indicated:

(a) "Board of Directors" shall mean the board of directors of Cytec Industries Inc.

(b) "Cause" shall mean (i) the willful and continued failure by a Participant substantially to perform such Participant's duties with the Company (other than any such failure resulting from such Participant's incapacity due to physical or mental illness), after a demand for substantial performance is delivered to the Participant by the Company which specifically identifies the manner in which the Company believes that the Participant has not substantially performed such Participant's duties, or (ii) the willful engaging by the Participant in conduct demonstrably injurious to the Company.  For purposes of this definition, no act, or failure to act, on the part of a Participant shall be considered "willful" unless done, or omitted to be done, by such Participant without reasonable belief that such Participant's action or omission was in the best interests of the Company and was lawful.

(c) A "Change in Control" shall be deemed to have occurred upon the occurrence of the one of the following events:
(i)Any one person, or more than one person acting as a group, acquires ownership of stock of the Company that, together with stock held by such person or group, constitutes more than 50% of either the total fair market value or total voting power of the stock of the Company; or

(ii)Any one person, or more than one person acting as a group, acquires (or has acquired during the 12-month period ending on the date of the most recent acquisition by such person or persons) ownership of stock of the Company possessing 35% or more of the total voting power of the Company; or

(iii)A majority of members of the Board is replaced during any 12-month period by directors whose appointment or election is not recommended by a majority of the members of the Board prior to the date of the appointment or election; or 

(iv)Any one person, or more than one person acting as a group, acquires (or has acquired during the 12-month period ending on the date of the most recent acquisition by such person or persons) assets from the Company that have a total gross fair market value equal to or more than 60% of the total gross fair market value of all of the assets of the Company immediately prior to such acquisition.

(d) "Company" shall mean Cytec Industries Inc. and, except for the purposes of Section 2(c) of the Plan, shall include any of its subsidiaries which employs Participants of this Plan. 

(e) "Compensation Committee" shall mean the Compensation and Management Development Committee as constituted from time to time of the Board of Directors, or such other body as shall have similar authority and responsibility.

(f) "Date of Termination" shall mean (i) if the employment of a Participant is terminated by death, the date of such Participant's death, (ii) if the Participant retires, the date of such Participant's retirement, (iii) if such employment is terminated by the Company other than for Cause or other than as a result of Disability, the date specified in the Notice of Termination, (iv) if such employment is terminated for Disability, the date of such Participant's Disability, (v) if employment is terminated by the Participant for Good Reason, the date specified in the Notice of Termination, (vi) if the Participant's employment is terminated following a Change in Control, the date in the Notice of Termination, and (vii) otherwise shall be the last day of work.

(g) "Disability" shall mean that a Participant is unable to engage in any substantial gainful activity by reason of any medically determinable physical or mental impairment that can be expected to result in death or can be expected to last for a continuous period of not less than 12 months.

(h) "Good Reason" shall mean: 
(i) A change in assignment resulting in the assignment to a Participant of substantially reduced responsibilities compared with those assigned to such Participant prior to such change, or any change in such Participant's status, authority or position which represents a demotion (actual or de facto) from such Participant's status, authority or position immediately prior to such change, except in connection with the termination of such Participant's employment because of death or retirement, by the Company for Disability or Cause, or by such Participant other than for a Good Reason enumerated in any of the following subparagraphs of this subsection (h); 

(ii) The assignment to a Participant of duties inconsistent with such Participant's responsibilities prior to such assignment, unless such new duties are consistent with a position of equal or greater status, authority, and position;

(iii)A reduction in the then current base salary of a Participant unless substantially all other Participants have their base pay reduced by a similar percentage at approximately the same time, or a reduction in the then current base salary of a Participant that occurs (i) after a Change in Control or (ii) while a Prospective Change in Control is pending if the pending Prospective Change in Control becomes a Change in Control within one year after the date of such reduction in base salary;

 (iv) A failure to pay a Participant any portion of such Participant's current or deferred compensation within seven (7) days of the date such compensation is due;

(v)The relocation of the principal executive offices of the Company to a location more than 50 miles from the location of the present executive offices or outside of New Jersey, or requiring a Participant to be based anywhere other than the principal executive offices (or, if a Participant is not based at such executive offices, requiring such Participant to be based at another location not within 50 miles of such location) except for required travel on business to an extent substantially consistent with such Participant's duties and responsibilities, or in the event of consent to any such relocation of the base location of a Participant the failure to pay (or provide reimbursement for) all expenses of such Participant incurred relating to a change of principal residence in accordance with the applicable personnel policies of the Company in effect immediately prior to the Change in Control;

(vi)The failure to continue in effect any benefit or compensation plan (including but not limited to the Long-Term Disability Plan, the I.C. Plan, this Plan, the stock option, stock appreciation rights and stock appreciation right features of the 1993 Stock Award and Incentive Plan (or of any subsequent and/or substitute plan)), the Employees' Savings Plan, the Supplemental Savings Plan, life insurance plan, health and accident plan, disability or vacation plan in which a Participant is participating, or the taking of any action which would adversely affect participation (including the Participant's eligibility to participate, the amount of the Participant's benefits, and the level of the Participant's participation relative to other participants) in or materially reduce benefits under any of such plans, or the failure to fund any "rabbi trust" created for the payment of any of the foregoing benefits, when, and to the extent, required by the terms  of any such trust, unless such action is required pursuant to law or unless substantially similar benefits are continued in the aggregate under other plans, programs or arrangements; provided that any of the events specified in this clause (vi) shall constitute Good Reason only if such event occurs (i) after a Change in Control or (ii) while a Prospective Change in Control is pending if the pending Prospective Change in Control becomes a Change in Control within one year after the date of any of the events specified in this clause (vi);

(vii)The failure to obtain the assumption of or an agreement to carry out the terms of this Plan by any successor as contemplated in Section 10 of the Plan; or

(viii) Any purported termination of a Participant's employment by the Company which is not effected pursuant to a Notice of Termination as herein defined.

(i) "I.C. Plan" means the existing system of annual cash bonuses payable to Company employees (including Participants), pursuant to which annual target bonuses are established based upon job levels and payments of bonuses as a percentage of such targets are made based upon Company, business group and individual performance.

(j) "Notice of Termination" shall mean a notice which indicates the specific basis for termination of employment relied upon and shall set forth in reasonable detail the facts and circumstances claimed to provide such basis.  The Notice of Termination shall also include the date of termination. 

(k) "Officers" shall mean the chairman, vice chairman, president, and any other person designated as an executive officer of Cytec Industries Inc. by resolution of the Board of Directors.

(l) "Participant" shall mean a person who is employed by the Company on a full-time basis (as reflected in the Company's payroll records) and for a regular fixed compensation (other than on a retainer or compensation for temporary employment) and who is included in the membership of this Plan as provided in Section 3 of the Plan.

(m) "Prospective Change in Control" shall have the meaning as defined in Section 13(b) of the Plan.

(m) "Service", as used in Section 5 of this Plan, shall mean service as a full time employee of the Company (as reflected in the Company's payroll records) or one of its subsidiaries.

3.Membership.  All Officers shall be Participants.  The Compensation Committee may designate any other employee as a Participant.  After an employee becomes a Participant, such employee's membership shall continue until the employee's death or retirement, termination of employment by the Company for Cause or Disability, or termination of employment by such Participant other than for Good Reason.

4.Termination of Employment.  Each Participant shall be entitled to receive the income continuation payments provided for in Section 5 of the Plan upon termination of such Participant's employment, unless such termination is (a) because of the Participant's death, Disability or retirement, (b) by the Company for Cause, or (c) by such Participant for any reason (other than for Good Reason which occurs within 120 days prior to the termination); provided that, if Notice of Termination is given prior to a Change in Control, such Participant shall have signed and delivered, in form and substance satisfactory to the General Counsel, a one-year non-compete agreement, a non-disparagement agreement, and a waiver, effectively waiving all claims against the Company (including its directors, officers, employees and agents) arising out of such Participant's employment, other than claims for payment post-termination of employment under the terms of this Plan and employee benefit and compensation plans of the Company, such waiver, non-disparagement agreement and a non-compete agreement to be delivered no later than the later of thirty days following (i) the date of Notice of Termination, or (ii) written request therefor by the Company.

5.Income Continuation.  

(a) Subject to the provisions of Section 7 of the Plan, upon the termination of employment, pursuant to Section 4 of the Plan, of a Participant, who is an Officer or who, on the Date of Termination, has at least one year of Service, the Company shall pay to the Participant the sum of the Participant's annual base salary at the rate in effect at the time Notice of Termination is given plus the Participant's Annual Bonus (excluding performance stock/cash awards) under the I.C. Plan based on such rate, in equal monthly installments over a 12 month period following the Date of Termination, subject to Subsections (c) and (d) of this Section; provided that in the case of Notice of Termination given after a Change in Control, such 12 month period shall be extended to 36 months and such amount shall be payable in a lump sum following the Date of Termination, subject to Subsections (c) and (d) of this Section.  As used in this Section 5 of the Plan, "Annual Bonus" means the greater of (i) the annual target bonus under the I.C. Plan attributable to the Participant, or (ii) said annual target bonus times a fraction equivalent to the average percentage of said annual target bonus paid to said Participant for each of the two preceding fiscal years of the Company (or for such lesser period of time as such Participant participated in the I.C. Plan).  Notwithstanding the foregoing, if termination occurred for Good Reason as specified in Section 2(h)(iii) or 2(h)(vi) of this Plan, the termination payments provided for in this Section 5(a) shall be calculated using the annual base salary and Annual Bonus as in effect immediately before the reduction of such annual base salary or Annual Bonus.  (b) Subject to the provisions of Section 7 of the Plan, upon the termination of employment, pursuant to Section 4 of the Plan, of any other Participant, the Company shall pay to the Participant the sum of the Participant's annual base salary at the rate in effect at the time Notice of Termination is given plus the Participant's Annual Bonus (excluding Performance Stock/Cash Awards) under the I.C. Plan based on such rate, in equal monthly installments over a period of 12 months following the Date of Termination. Notwithstanding the foregoing, if termination occurred for Good Reason as specified in Section 2(h)(iii) or 2(h)(vi) of this Plan, the termination payments provided for in this Section 5(a) shall be calculated using the annual base salary and Annual Bonus as in effect immediately before the reduction of such annual base salary or Annual Bonus.(c) All payments under subsections (a) and (b) of this Section 5 of the Plan shall commence, or be paid, on the first business day of the seventh month after the Participant's Date of Termination.  Payments that would have been made during the six-month period following the Participant's Date of Termination shall be paid to the Participant on the first business day of the seventh month after the Participant's Date of Termination, without interest.  

(d)Notwithstanding anything in the Plan to the contrary, (i) no payment shall be made with respect to any period beyond the date of the Participant's 65th birthday (including the portion of the lump sum payment described in Subsection (a) that relates to installment payments that would have been made after the Participant attained age 65 if the Participant would have received installment payments rather than the lump sum payment), and (ii) there shall be deducted from any payments required hereunder (x) any payments made with respect to any required notice period under any employment agreement between a Participant and the Company or one of its subsidiaries,  (y) any payments received by the Participant under the Company's Long Term Disability Plan or under any short term disability plan or program of the Company during the period with respect to which income continuation is computed hereunder and (z) any severance payments or termination payments received by the Participant from the Company or any of its direct or indirect subsidiaries required under the local laws of any country other than the United States.  Payment that cannot otherwise be made to the Participant prior to the Participant's 65th birthday as a result of the six-month delay described in Subsection (c) of this Section shall be paid to the Participant on the first business day of the seventh month after the Participant's Date of Termination, without interest. 

6.Other Payments.  Subject to the provisions of Section 7 of the Plan, upon termination of the employment of a Participant pursuant to Section 4 of the Plan, the Company shall, in addition to the payments provided for in Section 5 of the Plan, pay to the Participant:

(a) All relocation payments described in Section 2(h)(v) of the Plan and all legal fees and expenses incurred by the Participant as a result of such termination (including all such fees and expenses, if any, incurred in contesting or disputing any such termination or in seeking to obtain or enforce any right or benefit provided by this Plan or in connection with any tax audit or proceeding to the extent attributable to the application of Section 4999 of the Code to any payment or benefit provided hereunder); and 

(b) During the period of two years following the Date of Termination, all reasonable expenses incurred by the Participant in seeking comparable employment with another employer to the extent not otherwise reimbursed to the Participant, including, without limitation, the fees and expenses of a reputable out placement organization, and reasonable travel, telephone and office expenses.

7.Competitive Employment.  The Company, at its option, may discontinue any payments being made to any Participant pursuant to Section 5 or Section 6 of the Plan if such Participant engages in the operation or management of any business anywhere in the world, whether as owner, stockholder, partner, officer, consultant, employee or otherwise, which at such time is in competition with any business of the Company in any field with which such Participant was involved during the last two years of the Participant's employment by the Company.  Ownership by such Participant of five percent or less of the shares of stock of any company listed on a national securities exchange or having at least 100 stockholders shall not make such Participant a "stockholder" within the meaning of that term as used in this Section 7 of the Plan.

8.Maintenance of Other Benefit Plans.  For a period of two (2) years following a Participant's Date of Termination, the Company shall maintain in full force and effect, for the continued benefit of each Participant entitled to receive, or who received, payments pursuant to Section 5 of the Plan, comprehensive medical and dental insurance, group life insurance, and financial planning and tax preparation and counseling services (but not including disability coverage) on the same basis as such Participant participated immediately prior to the Date of Termination, and further provided that if the Participant's continued participation is not permitted under the general terms and provisions of such plans and programs or applicable law, the Company shall provide equivalent benefits. 

9.No Mitigation.  No Participant shall be required to mitigate the amount of any payment provided for under this Plan by seeking other employment or otherwise, nor shall the amount of any payment so provided for be reduced by any compensation earned by any Participant as the result of employment by another employer, by retirement benefits or by offset against any amount claimed to be owed by the Participant to the Company.

10.Successors.  The Company will require any successor (whether direct or indirect, by purchase, merger, consolidation or otherwise) to all or substantially all of the business and assets of the Company, by a written agreement, to expressly assume and agree to carry out the provisions of this Plan in the same manner and to the same extent that the Company would be required to carry them out if no such succession had occurred.

11.Notice.  Any notice expressly provided for under this Plan shall be in writing, shall be given either manually or by mail, telegram, telex, telefax or cable, and shall be deemed sufficiently given, if and when received by the Company at its offices at 5 Garret Mountain Plaza, West Paterson, New Jersey 07424 Attention:  Secretary, or by any Participant at the address on the records of the Company for such Participant, or if and when mailed by registered mail, postage prepaid, return receipt requested, addressed to the Company or the Participant to be notified at such address.  Either the Company or any Participant may, by notice to the other, change its address for receiving notices.

12.Funding.  All payments provided for under this Plan for Participants (including those who have retired) shall not be funded or secured, and no trust shall be created hereunder.  Payments under the Plan shall become fully vested and nonforfeitable upon the termination of a Participant's employment except for termination where a Participant not be entitled to income continuation payments as provided in Section 4 and except as provided in Section 7 of the Plan. 

13.Amendment and Termination.  

(a)The Board of Directors may at any time or from time to time amend or terminate this Plan.  No such amendment or termination may adversely affect any vested benefits hereunder; and, provided further, that after a Change in Control, this Plan may not be amended or terminated without the consent of all persons who were Participants as of the date of such Change in Control (including those who have retired).

(b)In addition, no amendment or termination made within one year before a Change in Control and made while a Prospective Change in Control is pending may adversely affect any benefit that might at any time be or become owing hereunder to a person who, immediately prior to the commencement of such Prospective Change in Control, was a Participant, without the consent of such person (other than a benefit to any such person who is the person, or part of the group, making the offer, or negotiating to make the offer, which constitutes the Prospective Change in Control).  As used herein, the term "Prospective Change in Control" means (i) any offer presented, directly or indirectly, to the Board of Directors of the Company which, if consummated, would constitute a Change in Control, or (ii) any negotiation with the Board of Directors or any committee or representative thereof to make such an offer (including the unilateral announcement of the terms on which such an offer would be made). 

14.Claim and Appeal Procedure.  This Section 14 of the Plan shall not apply after there has been a Change in Control.

The Company shall appoint a person or persons to adjudicate claims and appeals under the Plan (the "Administrator").  The Administrator shall provide adequate notice in writing to any Participant or to any beneficiary (the "Claimant") whose claim for benefits under the Plan has been denied.  The Administrator's notice to the Claimant shall set forth:

(a)The specific reason for the denial;

(b)Specific references to pertinent Plan provisions upon which the Administrator based its denial;

(c)A description of any additional material and information that is needed; 

(d)That any appeal the Claimant wishes to make of the adverse determination must be in writing to the Administrator within seventy-five (75) days after receipt of the Administrator's notice of denial of benefits.  The Administrator's notice must further advise the Claimant that the Claimant's failure to appeal the action to the Administrator in writing within the seventy-five (75) day period will render the Administrator's determination final, binding and conclusive; and 

(e)The name and address to whom the Claimant may forward an appeal.

If the Claimant should appeal to the Administrator, the Claimant, or the Claimant's duly authorized representative, may submit, in writing, whatever issues and comments the Claimant or the Claimant's duly authorized representative feels are pertinent.  The Claimant, or the Claimant's duly authorized representative, may review pertinent Plan documents.  The Administrator shall re-examine all facts to the appeal and make a final determination as to whether the denial of benefits is justified under the circumstances.  The Administrator shall advise the Claimant of its decision within sixty (60) days of the Claimant's written request for review, unless special circumstances (such as a hearing) would make the rendering of a decision within the sixty (60) day limit unfeasible, but in no event shall the Administrator render a decision respecting a denial for a claim of benefits later than one hundred twenty (120) days after its receipt of a request for review.  The Administrator's notice to the Claimant shall set forth:
(i)The specific reason for the denial;

(ii)Specific references to pertinent Plan provisions upon which the Administrator based its denial;

(iii)A statement that the Claimant is entitled to receive, upon request and free of charge, reasonable access to, and copies of, all documents, records, and other information relevant to the Claimant's claim; and 

(iv)A statement that the Claimant has a right to bring a civil action under Section 502(a) of ERISA. 

15.Governing Law.  This Plan, and the rights and obligations of the Company and the Participants hereunder, shall be construed and governed in accordance with the law of the State of New Jersey.

16.Partial Invalidity.  If any provision of this Plan is determined to be invalid or unenforceable, such invalidity or unenforceability shall not affect the remaining provisions of this Plan, which shall remain in effect in accordance with its terms.

_/s/ Roy Smith__________________10/16/2009

ROY SMITH DATE 

_/s/Marilyn R. Charles____________10/21/2009

MARILYN R. CHARLESDATE 

Exhibit B

CONSULTING AGREEMENT

THIS CONSULTING AGREEMENT is made as of the 1st day of November, 2009, between Cytec Industries Inc., a Delaware corporation, whose address is Five Garret Mountain Plaza, West Paterson, New Jersey, 07424 ("Client"), and Steven C. Speak ("Consultant").

W I T N E S S E T H:

The parties hereto mutually agree as follows:

	Client retains Consultant on the terms and conditions hereinafter stated as consultant and advisor to Client with respect to management of all aspect of Client's engineered materials business.  Consultant agrees to act as such consultant and advisor and to perform any requested services in a professional and efficient manner.  Consultant agrees to schedule Consultant's hours and devote such time to the performance of services hereunder as is necessary to perform the services requested by Client provided Consultant shall not be obligated to provide more than 40 hours of service for Client in any calendar month. The expectation is that all services to be rendered hereunder by Consultant shall be rendered at Consultant's principal place of business although isolated instances of travel to Client's principal place of business or to the office of a customer of Client or to a lawyer's office or courtroom in the case of any litigation involving Client may be required.

	The term of this Agreement shall commence on November 1, 2009, and shall continue through October 31, 2010 except as set forth below.  Consultant may terminate this agreement at any time upon one week advance written notice.  Client may terminate this agreement at any time upon one week advance written notice if Consultant is unable to provide services hereunder as a result of Consultant's death, disability or acceptance of full-time employment.  

	Client shall pay Consultant for his services hereunder $15,000 per month while this Agreement remains in effect whether or not any services are utilized in a month.  Payment shall be made in arrears, and shall be prorated in the case of less than a full month.  In addition, Client shall reimburse Consultant for such reasonable out-of-pocket traveling and living expenses (including reimbursement for economy class travel and accommodations, but excluding cost of travel between Consultant's place of business and Client's facilities located within fifty (50) miles of Consultant's place of business), as Consultant shall incur while away from Consultant's principal place of business on business for, and at the request of, Client.  Consultant agrees to invoice Client monthly for any reimbursable expenses incurred, including such supporting documentation as may be reasonably requested by Client.  Payment against such invoices shall be due within 20 days of the date of invoice.

	Consultant is engaged by the Client only for the purposes and to the extent set forth in this Agreement and, accordingly, nothing in this Agreement shall be considered to create the relationship of employer/employee between Client and Consultant.  In performing services hereunder, Consultant shall function as an independent contractor and not as an employee or agent of Client.  Consultant shall be solely and unconditionally responsible for any and all city, state and federal income taxes, social security withholding taxes, and any other self-employment tax obligation relating to the income which Consultant may derive from this Agreement.  Client and Consultant shall report any and all payments made by Client pursuant to this Agreement to the appropriate governmental agencies in a manner consistent with Consultant's status as an independent contractor.  Consultant's services hereunder shall not qualify for participation in any plans, arrangements or distributions by Client pertaining to, or in connection with, any pension, stock, bonus, profit-sharing, welfare or similar benefit plan offered by Client to its employees, and Consultant specifically waives any claims to any such benefits.  Consultant shall have no right or power to enter into any contract or commitment on behalf of Client. 

	If Consultant performs services at Client' premises, or at Client's direction, the premises of others, Consultant shall comply with all rules and regulations of such premises, including, but not limited to, Client's policies for the maintenance of a drug free work environment for its employees.

	This Agreement and the Retirement Agreement between the parties dated as of October 27, 2009 constitutes the entire understanding between the parties hereto relating to the subject matter hereof and may be amended only by a written instrument executed by both parties and specifically stating that it is an amendment of this Agreement.

	Any notice or request expressly provided for or permitted under this Agreement shall be in writing, shall be given either manually or by mail, facsimile message or other written means and shall be deemed sufficiently given if and when received by the party to be notified at its address first set forth in this Agreement or if and when mailed by registered or certified mail, postage prepaid, addressed to such party at such address.  Either party may, by notice to the other, change its address for receiving such notices and requests.

	EXHIBIT A, which is attached hereto, is hereby made a part of this Agreement.

	This Retirement Agreement shall be governed by and construed in accordance with the laws of the State of New Jersey.  The parties agree that any and all disputes arising under this Agreement are to be resolved exclusively by courts sitting in New Jersey.  Each party irrevocably consents to the jurisdiction of such courts and agrees not to assert by way of motion, as a defense, or otherwise, any claim that such party is not subject personally to the jurisdiction of such court, that the action, suit or proceeding is brought in an inconvenient forum, that the venue of the action, suit or proceeding is improper, or that this Retirement Agreement may not be enforced in or by such court.  

 

IN WITNESS WHEREOF, this Agreement has been executed as of the date first above written.

CYTEC INDUSTRIES INC.

 

__________________________By:________________________

Name:   Name:

     Title:

 

 

E X H I B I T  A

 

Attached hereto and constituting part of the Agreement made as of October 29, 2009, by and between CYTEC INDUSTRIES INC. ("Client") and Steven C. Speak ("Consultant").

* * * * * *

A.  Consultant understands that in the performance of Consultant's services hereunder Consultant may obtain knowledge of "confidential information", as hereinafter defined, relating to the business of Client (or any of its subsidiary or affiliated companies).  As used herein, "confidential information" means any information (including, without limitation, any formula, pattern, device, plan, process or compilation of information) which 

	is, or is designed to be, used in the business of Client (or any of its subsidiary or affiliated companies) or results from its or their research and/or development activities, 

	is private or confidential in that it is not generally known or available to the public and 

	gives Client (or any of its subsidiary or affiliated companies) an opportunity to obtain an advantage over competitors who do not know or use it. Consultant shall not, without the written consent of an officer of Client, either during the term of this Agreement or thereafter, 

	use or disclose any such confidential information outside Client (or any of its subsidiary or affiliated companies), 

(ii) publish any article with respect thereto, or 

(iii) except in the performance of Consultant's services hereunder, remove or aid in the removal from the premises of Client any such confidential information or any property or material which relates thereto.

B.(l)Consultant shall promptly disclose to Client any and all inventions, improvements, machines, appliances, processes, products, or the like (all of which are referred to herein as "inventions") which Consultant may invent, conceive, produce, or reduce to practice, either solely or jointly with others, at any time while this Agreement is in effect which relate to Consultant's services hereunder.

(2)All such inventions shall at all times and for all purposes be regarded as acquired and held by Consultant in a fiduciary capacity for, and solely for the benefit of, Client.

(3)With respect to all such inventions, Consultant shall:

(i)treat all information with respect thereto as confidential information within the meaning of, and subject to, Paragraph A of this Exhibit;

(ii)keep complete and accurate records thereof, which records shall be the property of Client;

       (iii) execute any application for letters patent of the United States and of any and all other countries covering such inventions, and give to Client, its attorneys and solicitors all reasonable and requested assistance in preparing such application;

(iv)from time to time, upon the request and at the expense of Client, but without charge for services beyond the payments herein provided for, execute all assignments or other instruments required to transfer and assign to Client (or as it may direct) all inventions, and all patents and applications for patents covering such inventions or otherwise required to protect the rights and interests of Client;

(v)testify in any proceedings or litigation as to all such inventions; and

(vi)in any case Client shall desire to keep secret any such invention, or shall for any reason decide not to have letters patent applied for thereon, refrain from applying for letters patent thereon.  

Client shall make payments at reasonable hourly rates to Consultant for time actually spent by Consultant in the foregoing activities at the request of Client, if such activities occur after termination of this Agreement.

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