Document:

Exhibit 4.1

 

 

 

QWEST
COMMUNICATIONS INTERNATIONAL INC.

 

 

3.50%
Convertible Senior Notes due 2025

 

 

 

First
Supplemental Indenture

 

Dated as
of November 8, 2005

 

 

 

U.S. Bank
National Association,

as Trustee with respect to such series of Securities

 

 

 

 

TABLE OF CONTENTS

 

 

	
   

  	
   

  	
  Page

  
	
   

  	
   

  	
   

  
	
  ARTICLE ONE

  
	
   

  	
   

  	
   

  
	
  THE 3.50% CONVERTIBLE SENIOR NOTES DUE 2025

  
	
   

  	
   

  	
   

  
	
  Section 1.01.

  	
  Designation of Notes

  	
  2

  
	
  Section 1.02.

  	
  Other Terms of the Notes

  	
  2

  
	
  Section 1.03.

  	
  Definitions

  	
  2

  
	
   

  	
   

  	
   

  
	
  ARTICLE TWO

  
	
   

  	
   

  	
   

  
	
  THE NOTES

  
	
   

  	
   

  	
   

  
	
  Section 2.01.

  	
  Form and Dating

  	
  13

  
	
  Section 2.02.

  	
  Execution and
  Authentication

  	
  14

  
	
  Section 2.03.

  	
  Registrar, Paying Agent
  and Conversion Agent

  	
  15

  
	
  Section 2.04.

  	
  Paying Agent To Hold Money
  in Trust

  	
  15

  
	
  Section 2.05.

  	
  Holder Lists

  	
  15

  
	
   

  	
   

  	
   

  
	
  ARTICLE THREE

  
	
   

  	
   

  	
   

  
	
  OPTIONAL REDEMPTION

  
	
   

  	
   

  	
   

  
	
  Section 3.01.

  	
  Optional Redemption

  	
  16

  
	
  Section 3.02.

  	
  Selection and Notice of
  Redemption

  	
  16

  
	
  Section 3.03.

  	
  [Reserved.]

  	
  17

  
	
  Section 3.04.

  	
  Effect of Notice of
  Redemption

  	
  17

  
	
  Section 3.05.

  	
  Deposit of Redemption
  Price

  	
  17

  
	
  Section 3.06.

  	
  Notes Redeemed in Part

  	
  18

  
	
   

  	
   

  	
   

  
	
  ARTICLE FOUR

  
	
   

  	
   

  	
   

  
	
  COVENANTS

  
	
   

  	
   

  	
   

  
	
  Section 4.01.

  	
  Payment of Notes

  	
  18

  
	
  Section 4.02.

  	
  Maintenance of Office or
  Agency

  	
  18

  
	
  Section 4.03.

  	
  Compliance Certificate

  	
  19

  
	
  Section 4.04.

  	
  Reservation of Common
  Stock

  	
  19

  
	
  Section 4.05.

  	
  Issuance of Shares

  	
  19

  
	
  Section 4.06.

  	
  Transfer Taxes

  	
  19

  
	
  Section 4.07.

  	
  Offer To Repurchase upon a
  Fundamental Change

  	
  20

  
	
  Section 4.08.

  	
  Offer to Repurchase on November 15,
  2010, 2015 and 2020

  	
  24

  

 

i

 

	
   

  	
   

  	
  Page

  
	
   

  	
   

  	
   

  
	
  ARTICLE FIVE

  
	
   

  	
   

  	
   

  
	
  SUCCESSORS

  
	
   

  	
   

  	
   

  
	
  Section 5.01.

  	
  Merger, Consolidation, or
  Sale of Assets

  	
  25

  
	
  Section 5.02.

  	
  Successor Corporation
  Substituted

  	
  26

  
	
   

  	
   

  	
   

  
	
  ARTICLE SIX

  
	
   

  	
   

  	
   

  
	
  DEFAULTS AND REMEDIES

  
	
   

  	
   

  	
   

  
	
  Section 6.01.

  	
  Events of Default

  	
  26

  
	
  Section 6.02.

  	
  Acceleration

  	
  29

  
	
  Section 6.03.

  	
  Other Remedies

  	
  29

  
	
  Section 6.04.

  	
  Waiver of Past Defaults

  	
  30

  
	
  Section 6.05.

  	
  Control by Majority

  	
  30

  
	
  Section 6.06.

  	
  Limitation on Suits

  	
  30

  
	
  Section 6.07.

  	
  Rights of Holders of Notes
  To Receive Payment or Effect Conversion

  	
  31

  
	
  Section 6.08.

  	
  Collection Suit by Trustee

  	
  31

  
	
  Section 6.09.

  	
  Trustee May File
  Proofs of Claim

  	
  31

  
	
  Section 6.10.

  	
  Priorities

  	
  32

  
	
  Section 6.11.

  	
  Undertaking for Costs

  	
  32

  
	
   

  	
   

  	
   

  
	
  ARTICLE SEVEN

  
	
   

  	
   

  	
   

  
	
  APPOINTMENT OF U.S. BANK NATIONAL ASSOCIATION

  
	
   

  	
   

  	
   

  
	
  Section 7.01.

  	
  Appointment of U.S. Bank
  National Association

  	
  33

  
	
  Section 7.02.

  	
  Acceptance of Trustee

  	
  33

  
	
  Section 7.03.

  	
  Qualification of Trustee

  	
  33

  
	
   

  	
   

  	
   

  
	
  ARTICLE EIGHT

  
	
   

  	
   

  	
   

  
	
  CONVERSION

  
	
   

  	
   

  	
   

  
	
  Section 8.01.

  	
  Conversion Right and
  Conversion Rate

  	
  33

  
	
  Section 8.02.

  	
  Conversion Consideration

  	
  35

  
	
  Section 8.03.

  	
  Exercise of Conversion
  Right

  	
  37

  
	
  Section 8.04.

  	
  Fractions of Shares

  	
  39

  
	
  Section 8.05.

  	
  Adjustment of Conversion
  Rate

  	
  39

  
	
  Section 8.06.

  	
  Notice of Adjustments of
  Conversion Rate

  	
  47

  
	
  Section 8.07.

  	
  Notice of Certain
  Corporate Transactions

  	
  48

  
	
  Section 8.08.

  	
  Cancellation of Converted
  Notes

  	
  48

  

 

ii

 

	
   

  	
   

  	
  Page

  
	
   

  	
   

  	
   

  
	
  Section 8.09.

  	
  Provision in Case of
  Consolidation, Merger or Sale of Assets

  	
  48

  
	
  Section 8.10.

  	
  Rights Issued in Respect
  of Common Stock

  	
  49

  
	
  Section 8.11.

  	
  Responsibility of Trustee
  and Conversion Agent for Conversion Provisions

  	
  50

  
	
   

  	
   

  	
   

  
	
  ARTICLE NINE

  
	
   

  	
   

  	
   

  
	
  AMENDMENT, SUPPLEMENT AND WAIVER

  
	
   

  	
   

  	
   

  
	
  Section 9.01.

  	
  Without Consent of Holders
  of Notes

  	
  51

  
	
  Section 9.02.

  	
  With Consent of Holders of
  Notes

  	
  52

  
	
  Section 9.03.

  	
  Compliance with Trust
  Indenture Act

  	
  53

  
	
  Section 9.04.

  	
  Revocation and Effect of
  Consents

  	
  54

  
	
  Section 9.05.

  	
  Notation on or Exchange of
  Notes

  	
  54

  
	
  Section 9.06.

  	
  Trustee To Sign
  Amendments, etc.

  	
  54

  
	
   

  	
   

  	
   

  
	
  ARTICLE TEN

  
	
   

  	
   

  	
   

  
	
  SATISFACTION AND DISCHARGE

  
	
   

  	
   

  	
   

  
	
  Section 10.01.

  	
  Satisfaction and Discharge

  	
  55

  
	
  Section 10.02.

  	
  Application of Trust
  Money; Other Miscellaneous Provisions

  	
  56

  
	
  Section 10.03.

  	
  Repayment to the Company

  	
  56

  
	
  Section 10.04.

  	
  Reinstatement

  	
  57

  
	
   

  	
   

  	
   

  
	
  ARTICLE ELEVEN

  
	
   

  	
   

  	
   

  
	
  MISCELLANEOUS

  
	
   

  	
   

  	
   

  
	
  Section 11.01.

  	
  Notices

  	
  57

  
	
  Section 11.02.

  	
  Indenture

  	
  58

  
	
  Section 11.03.

  	
  Governing Law

  	
  59

  
	
  Section 11.04.

  	
  No Adverse Interpretation
  of Other Agreements

  	
  59

  
	
  Section 11.05.

  	
  Successors and Assigns

  	
  59

  
	
  Section 11.06.

  	
  Duplicate Originals

  	
  59

  
	
  Section 11.07.

  	
  Severability

  	
  59

  

 

 

	
  Exhibits

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Exhibit A

  	
   

  	
  FORM OF NOTE

  	
   

  
	
  Exhibit B

  	
   

  	
  FORM OF FUNDAMENTAL CHANGE REPURCHASE
  NOTICE

  	
   

  
	
  Exhibit C

  	
   

  	
  FORM OF CONVERSION NOTICE

  	
   

  
	
  Exhibit D

  	
   

  	
  FORM OF REPURCHASE NOTICE

  	
   

  

 

iii

 

FIRST
SUPPLEMENTAL INDENTURE dated as of November 8, 2005 (this “Supplemental Indenture”) by and between QWEST COMMUNICATIONS
INTERNATIONAL INC., a Delaware corporation (the “Company”
or “QCII”), and U.S. BANK NATIONAL
ASSOCIATION, a national banking association, as trustee under the Indenture
with respect to the Notes (as defined below) (the “Trustee”).
The Trustee, and each other trustee appointed as such with respect to the
Securities of any series issued under the Indenture, shall be the “Trustee” (as
defined in the Indenture, as supplemented hereby) for all purposes under the
Indenture with respect to the applicable series of Securities but, for the
avoidance of doubt, not with respect to any series of Securities for which such
Trustee has not been appointed trustee under the terms of the Indenture and/or
any supplement thereto.

 

Each party
agrees as follows for the benefit of the other party and for the equal and
ratable benefit of the holders of Notes:

 

WHEREAS, the
Company and U.S. Bank National Association, are parties to that certain
Indenture (the “Base  Indenture”)
dated as of November 8, 2005 providing for the issuance from time to time
of senior debt securities (“Securities”) to
be issued in one or more series;

 

WHEREAS, the
Base Indenture is incorporated herein by this reference and the Base Indenture,
as may be amended and supplemented to the date hereof, including by this Supplemental
Indenture, is herein called the “Indenture”;

 

WHEREAS, the
Company desires and has requested the Trustee to join it in the execution and
delivery of this Supplemental Indenture in order to establish and provide for
the issuance by the Company of a series of Securities, designated as its 3.50%
Convertible Senior Notes due 2025 (the “Notes”), in an
initial aggregate principal amount of $1,265,000,000. The Notes shall be
substantially in the form attached hereto as Exhibit A;

 

WHEREAS, the
conditions set forth in the Base Indenture for the execution and delivery of
this Supplemental Indenture have been complied with;

 

WHEREAS, the
Company desires to evidence and provide for the acceptance of the appointment
under the Indenture of the Trustee as Trustee with respect to the Notes and to
add to or change certain provisions of the Base Indenture as it shall apply to
the Notes; and

 

WHEREAS, all
things necessary to make this Supplemental Indenture a valid agreement of the
Company and the Trustee, in accordance with its terms, and a valid amendment
of, and supplement to, the Indenture have been done.

 

NOW,
THEREFORE, in consideration of the premises and the purchase and acceptance of
the Notes by the holders thereof, the Company covenants and agrees with the
Trustee, for the equal and ratable benefit of the Holders, that the Base
Indenture is supplemented and amended, to the extent expressed herein, as
follows:

 

 

ARTICLE ONE

THE 3.50% CONVERTIBLE SENIOR NOTES DUE 2025

 

Section 1.01.                                       Designation
of Notes.

 

The changes,
modifications and supplements to the Base Indenture effected by this
Supplemental Indenture shall be applicable only with respect to, and govern the
terms of, the Notes as defined below or as defined in the preamble to this
Supplemental Indenture, which shall not be limited in aggregate principal
amount, and shall not apply to any other Securities that have been or may be
issued under the Base Indenture unless a supplemental indenture with respect to
such other Securities specifically incorporates such changes, modifications and
supplements. Pursuant to Section 2.06 of the Base Indenture, there is
hereby created and designated a series of Securities under the Indenture,
entitled “3.50% Convertible Senior Notes due 2025.”  The Notes shall be in the form of Exhibit A
hereto. The Notes may bear an appropriate legend regarding original issue
discount for federal income tax purposes. Subject to the terms in the Indenture
the Company may, at its option, without consent from the Holders, issue
Additional Notes from time to time. For all purposes under the Indenture, the
term “Notes” shall include the Initial Notes and any such Additional Notes
issued after the date of this Indenture.

 

Section 1.02.                                       Other
Terms of the Notes.

 

Without
limiting the foregoing, the terms of the Notes shall be as set forth in the
form of Note set forth in Exhibit A hereto, and are hereby
incorporated in and expressly made a part of this Supplemental Indenture, and
as provided in the Indenture.

 

The Trustee
shall authenticate and deliver Notes for original issue in an aggregate
principal amount of up to $1,265,000,000 of the 3.50% Convertible Senior Notes
due 2025.

 

The Notes
shall be payable and may be presented for payment, purchase, conversion,
registration of transfer and exchange, without service charge, at the office of
the Company maintained for such purpose in New York, New York, which shall initially
be the office or agency of the Trustee.

 

Section 1.03.                                       Definitions.

 

(a)                                  The
following terms have the meanings set forth below in this Supplemental
Indenture. Capitalized terms used but not otherwise defined herein shall have
the meanings ascribed to such terms in the Base Indenture. To the extent terms
defined herein differ from the Base Indenture, the terms defined herein will
govern.

 

2

 

“Additional Notes” means
additional Notes (other than the Initial Notes) issued under this Indenture in
accordance with Section 2.02 hereof, as part of the same series as the Initial
Notes.

 

“Additional Shares” means
additional shares of Common Stock by which the Conversion Rate shall be
increased for Notes surrendered for conversion pursuant to an adjustment of the
Conversion Rate upon the occurrence of a Fundamental Change. The number of Additional
Shares shall be determined based on the Effective Date of the Fundamental
Change and the Stock Price in such Fundamental Change transaction, all in
accordance with Section 8.05(e).

 

“Affiliate”
means, with respect to any specified Person, any other Person directly or
indirectly controlling or controlled by or under direct or indirect common
control with such specified Person. For the purposes of this definition, “control”
when used with respect to any specified Person means the power to direct the
management and policies of such Person, directly or indirectly, whether through
the ownership of voting securities, by contract or otherwise; and the terms “controlling”
and “controlled” have meanings correlative to the foregoing. No individual
shall be deemed to be controlled by or under common control with any specified
Person solely by virtue of his or her status as an employee or officer of such
specified Person or of any other Person controlled by or under common control
with such specified Person.

 

“Agent” means any
Registrar, co-registrar, Paying Agent, additional paying agent or Conversion
Agent.

 

“Applicable Conversion Price” means, at any given time,
$1,000 divided by the Applicable Conversion Rate, rounded to the nearest 1/10th
of a cent.

 

“Applicable Conversion Rate” means, at any given time, the
Conversion Rate then in effect, rounded to the nearest 1/10,000th of
a share.

 

“Applicable Conversion Reference Period” means
the 20 consecutive Trading Days beginning on the third Trading Day following
the Conversion Date or, if the Company elects to pay cash to Holders of Notes
in lieu of all or a portion of the Residual Value Shares, the third Trading Day
after the Conversion Retraction Period ends.

 

“Applicable Procedures” means, with
respect to any transfer or exchange of or for beneficial interests in any
Global Note, the rules and procedures of the Depositary that apply to such
transfer or exchange.

 

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

 

3

 

“Beneficial Owner” has the
meaning assigned to such term in Rule 13d-3 under the Exchange Act. The
terms “Beneficial Ownership” and “Beneficially Owns” have a corresponding
meaning.

 

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

 

“Business Day” means any day
other than a Saturday, Sunday or a day on which banking institutions in the
City of New York, New York or at a place of payment are authorized by law,
regulation or executive order to remain closed.

 

“Capital Stock” means:

 

(1)                                  in
the case of a corporation, corporate stock;

 

(2)                                  in
the case of an association or business entity, shares, interests,
participations, rights or other equivalents (however designated) of corporate
stock;

 

(3)                                  in
the case of a partnership or limited liability company, partnership or
membership interests (whether general or limited); and

 

(4)                                  any
other interest or participation that confers on a Person the right to receive a
share of the profits and losses of, or distributions of the assets of, the
issuing Person.

 

“Closing Sale Price” means, with
respect to the Common Stock, on any date, the last reported closing price per
share (or, if no last closing price is reported, the average of the last bid
and ask prices or, if more than one in either case, the average of the average
bid and the average ask prices) on such date as reported in composite
transactions for the principal U.S. securities exchange on which the Common
Stock then is listed or, if the Common Stock is not listed on a U.S. national
or regional exchange, as reported on NASDAQ or, if the Common Stock is not
quoted on NASDAQ, the “Closing Sale Price” will be the last quoted bid
price for the Common Stock in the over-the-counter market on the relevant dates
as reported by the National Quotation Bureau Incorporated or any similar U.S.
system of automated dissemination of quotations of securities prices. If the
Common Stock is not so quoted, the “Closing Sale Price” will be the price as
reported on the principal other market on which the Common Stock is then traded.
In the absence of such quotations, the Company’s Board of Directors will make a
good faith determination of the Closing Sale Price.

 

“Common Stock” means the
common stock of the Company, par value $0.01 per share, as it exists on the
date of this Indenture, or to the extent such common stock is reclassified or
otherwise ceases to exist, any class of Capital Stock of the Company that (1) is
Voting Stock, (2) has no preference in respect of dividends or of amounts
payable in the event of any voluntary or involuntary liquidation, dissolution
or winding up of the issuer thereof and which is not subject to redemption by
the issuer thereof and (3) is registered pursuant to Section 12 

 

4

 

of the
Exchange Act and admitted for trading on a national securities exchange or
quoted on the automated quotation system of a registered securities
association, if any.

 

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

 

“Comparable Treasury Issue” means the United States Treasury
security selected by the Quotation Agent as having a maturity comparable to the
Remaining Life that would be utilized, at the time of selection and in
accordance with customary financial practice, in pricing new issues of
corporate debt securities of comparable maturity with the Remaining Life as of
the Applicable Redemption Date.

 

“Comparable Treasury Price” means, with respect to any Redemption
Date, the average of two Reference Treasury Dealer Quotations for such
Redemption Date.

 

“Continuing Directors” means, as of
any date of determination, any member of the Board of Directors of the Company
who:

 

(1)                                  was
a member of such Board of Directors on the date of this Indenture; or

 

(2)                                  becomes
a member of the Board of Directors of the Company subsequent to that date and
was appointed, nominated for election or elected to such Board of Directors
with the approval of a majority of the Continuing Directors who were members of
such Board of Directors at the time of such appointment, nomination or
election.

 

“Conversion Period” means the
period from and including the eleventh Trading Day in a fiscal quarter up to,
but not including, the eleventh Trading Day of the following fiscal quarter.

 

“Conversion Price” shall equal
$1,000 divided by the Conversion Rate (rounded to the nearest 1/10th of a cent).

 

“Conversion Value” shall equal
the product of (1) the Applicable Conversion Rate and (2) the average
of the Closing Sale Prices of the Common Stock for each of the 20 consecutive
Trading Days in the Applicable Conversion Reference Period.

 

“Corporate Trust Office of the Trustee” will be at the address of the Trustee specified in Section 11.01
hereof or such other address as to which the Trustee may give notice to the
Company.

 

5

 

“Current Market Price” as of any date
means:

 

(1)                                  for
the purpose of any computation under Section 8.05(a) (except for
clauses (6) and (8) thereof), the average of the Closing Sale Prices
for the five consecutive Trading Days ending on the
Trading Day prior to the earlier of the record date or the ex-dividend Trading
Day for such distribution;

 

(2)                                  for
the purpose of any computation under Section 8.05(a)(6), the average of
the Closing Sale Prices for the five consecutive Trading Days ending on the
Trading Day prior to the ex-dividend Trading Day for such distribution; and

 

(3)                                  for
the purpose of any computation under Section 8.05(a)(8), the average of
the Closing Sale Prices for the five consecutive Trading Days beginning on the
Trading Day immediately following the date of the repurchase triggering the
adjustment.

 

“Custodian” means the
Trustee, as custodian with respect to the Notes in global form, or any
successor entity thereto.

 

“Daily Adjustment” for any given
Trading Day shall equal a fraction:

 

(1)                                  the
numerator of which shall be the Closing Sale Price of the Common Stock on such
Trading Day plus the closing price of the portion of those shares of Capital
Stock or similar Equity Interests so distributed applicable to one share of
Common Stock on such Trading Day; and

 

(2)                                  the
denominator of which shall be the product of ten (10) and the Closing Sale
Price of the Common Stock on such Trading Day.

 

“Daily Trading Share Amount” for
each day in the Applicable Conversion Reference Period shall equal the greater
of:

 

(1)                                  zero;
or

 

(2)                                  a
number of shares determined by the following formula:

 

	
   

  	
  (Closing
  Sale Price x Applicable Conversion Rate) - $1,000

  	
   

  
	
  20 x Closing
  Sale Price

  

 

“Default”
means an event that is, or after notice or passage of time, or both, would be,
an Event of Default with respect to the Notes.

 

“Definitive Note” means a
certificated Note registered in the name of the Holder thereof, substantially
in the form of Exhibit A hereto except that such Note shall not

 

6

 

bear the
Global Note Legend and shall not have the “Schedule of Exchanges of
Interests in the Global Note” attached thereto.

 

“Depositary” means, with
respect to the Notes issuable or issued in whole or in part in global form, the
Person specified in Section 2.03 hereof as the Depositary with respect to
the Notes, and any and all successors thereto appointed as depositary hereunder
and having become such pursuant to the applicable provision of this Indenture.

 

“Effective Date” means the date
on which a Fundamental Change transaction becomes effective.

 

“Equity Interests” means Capital
Stock and all warrants, options or other rights to acquire Capital Stock (but
excluding any debt security that is convertible into, or exchangeable for,
Capital Stock).

 

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

 

“Fair Market Value” means the
value that would be paid by a willing buyer to an unaffiliated willing seller
in a transaction not involving distress or necessity of either party,
determined in good faith by the Board of Directors of the Company or, unless
otherwise provided in this Indenture, by any Responsible Officer delegated by
the Board of Directors to make such determination on their behalf.

 

“Fundamental Change” will be deemed to
have occurred at the time after the Notes are originally issued that any of the
following occurs:

 

(1)                                  the
Company’s Common Stock (or other common stock into which the Notes are
convertible) is neither traded on the New York Stock Exchange or another U.S.
national securities exchange nor quoted on NASDAQ or another established
automated over-the-counter trading market in the United States; or

 

(2)                                  any
Person, including any syndicate or group deemed to be a “person” under Section 13(d)(3) of
the Exchange Act, acquires Beneficial Ownership, directly or indirectly,
through a purchase, merger or other acquisition transaction or series of
transactions, of shares of the Company’s Capital Stock entitling such Person to
exercise 50% or more of the total voting power of all shares of the Company’s
Capital Stock entitled to vote generally in elections of directors, other than
an acquisition by the Company, any of its Subsidiaries or any of the Company’s
employee benefit plans; or

 

(3)                                  the
Company merges or consolidates with or into any other Person (other than a
Subsidiary), another Person merges with or into the Company, or the Company
conveys, sells, transfers or leases all or substantially all of the Company’s
assets to another Person, other than any transaction:

 

7

 

(a)                                  that does not result in a reclassification,
conversion, exchange or cancellation of the Company’s outstanding Common Stock;
or

 

(b)                                 pursuant to which the holders of the Company’s
Common Stock immediately prior to the transaction have the entitlement to
exercise, directly or indirectly, 50% or more of the voting power of all shares
of Capital Stock entitled to vote generally in the election of directors of the
continuing or surviving corporation immediately after the transaction; or

 

(c)                                  which is effected solely to change the
Company’s jurisdiction of incorporation and results in a reclassification,
conversion or exchange of outstanding shares of the Company’s Common Stock
solely into shares of common stock of the surviving entity; or

 

(4)                                  at
any time the Continuing Directors do not constitute a majority of the Company’s
Board of Directors (or, if applicable, a successor Person to the Company).

 

“Global Note Legend” means a legend
substantially to the effect of the legend in Section 2.10 of the Base Indenture.

 

“Government Securities” means direct
obligations of, or obligations guaranteed by, the United States of America, and
for the payment of which the United States pledges its full faith and credit.

 

“Holder” means a Person
in whose name a Note is registered.

 

“Initial Notes” means the $1,265,000,000
aggregate principal amount of Notes issued under this Indenture on the date
hereof.

 

“Interest Payment Date” means May 15
and November 15 of each year or, if any such day is not a Business Day, on
the next succeeding Business Day.

 

“Legal Holiday” means a
Saturday, a Sunday or a day on which banking institutions in the City of New
York, New York or at a place of payment are authorized by law, regulation or
executive order to remain closed. If a payment date is a Legal Holiday at a
place of payment, payment may be made at that place on the next succeeding day
that is not a Legal Holiday, and no interest shall accrue on such payment for
the intervening period.

 

“Market Capitalization” means the
product of (1) the Current Market Price of the Common Stock and (2) the
number of shares of Common Stock then outstanding on the date of the repurchase
of Common Stock triggering the adjustment set forth in Section 8.05(a)(8) hereof
immediately prior to such repurchase.

 

“Maturity” means, with
respect to any Note, the date on which the principal of such Note becomes due
and payable as therein or herein provided, whether at stated maturity,

 

8

 

on a
Redemption Date or by declaration of acceleration, offer to repurchase pursuant
to Section 4.07, 4.08 or otherwise.

 

“NASDAQ” means The
NASDAQ Stock Market, Inc.

 

“Notes” has the
meaning assigned to it in the preamble to this Supplemental Indenture. The
Initial Notes and the Additional Notes shall be treated as a single class for
all purposes under this Indenture, and unless the context otherwise requires,
all references to the Notes shall include the Initial Notes and any Additional
Notes.

 

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

 

“Officer’s Certificate” means a certificate signed by a
Responsible Officer and delivered to the Trustee.

 

“Opinion of
Counsel” means a written opinion of counsel, who may be an employee
of or counsel for the Company, any subsidiary of the Company or the Trustee.

 

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

 

(i)                  Notes theretofore cancelled by the Trustee or delivered to the Trustee
for cancellation (including Notes converted and cancelled pursuant to this
Indenture);

 

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

 

(iii)            Notes
which have been paid pursuant to Section 2.10 of the Base Indenture or in
exchange for or in lieu of which other Notes have been authenticated and delivered
pursuant to this Indenture, other than any such Notes in respect of which there
shall have been presented to the Trustee proof satisfactory to it that such
Notes are held by a bona fide purchaser in whose hands such Notes are valid
obligations of the Company; and

 

(iv)           Notes as to which Defeasance has been
effected pursuant to Section 9.02 of the Base Indenture;

 

provided,
however, that in
determining whether the Holders of the requisite principal amount of the
Outstanding Notes have given, made or taken any request, demand, authorization,
direction, notice, consent, waiver or other action hereunder, Notes owned by
the Company or

 

9

 

any other
obligor upon the Notes or any Affiliate of the Company or of such other obligor
shall be disregarded and deemed not to be Outstanding, except that, in
determining whether the Trustee shall be protected in relying upon any such
request, demand, authorization, direction, notice, consent, waiver or other
action, only Notes which the Trustee knows to be so owned shall be so
disregarded. Notes 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 Notes and that the
pledgee is not the Company or any other obligor upon the Notes or any Affiliate
of the Company or of such other obligor.

 

“Participant” means a Person
who has an account with the Depositary.

 

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

 

“Person”
means any individual, corporation, partnership, limited liability company,
joint venture, association, joint stock company, trust, unincorporated
organization or government or any agency or political subdivision thereof or
any syndicate or group that would be deemed to be a “person” under Section 13(d) (3) of
the Exchange Act.

 

“Quotation Agent” means a Reference Treasury Dealer appointed
by the Company to act as the Quotation Agent pursuant to the terms of this
Indenture.

 

“Record Date Period” means the
period from the close of business on any Regular Record Date immediately
preceding any Interest Payment Date to the opening of business on such Interest
Payment Date.

 

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

 

“Reference Treasury Dealer” means Goldman, Sachs &
Co. and its successors and another U.S. Government securities dealer selected
by the Company; provided, however,
that if either Goldman, Sachs & Co. or such other U.S. Government
securities dealer selected by the Company ceases to be a primary U.S.
Government securities dealer in New York City, the Company will substitute
therefore another primary U.S. Government securities dealer.

 

“Reference Treasury Dealer Quotations” means, with respect to
each Reference Treasury Dealer and any Redemption Date, the average, as
determined by the Trustee, of the bid and asked prices for the Comparable
Treasury Issue (expressed in each case as a percentage of its principal amount)
quoted in writing to the Trustee by such Reference Treasury Dealer at 5:00 p.m.,
New York City time, on the third business day preceding such Redemption Date.

 

“Regular Record Date” for interest
payable in respect of any Note on any Interest Payment Date means the May 1
or November 1 (whether or not a Business Day), as the case may be,
immediately preceding such Interest Payment Date.

 

10

 

“Residual Cash Value” for each date
shall be the product of (1) the percentage of each Residual Value Share
otherwise issuable upon conversion which the Company elects to pay in cash and (2) the
cash value of the Daily Trading Share Amount for such date. The cash value of
the Daily Trading Share Amount shall be determined by multiplying the Daily
Trading Share Amount for such date by the Closing Sale Price of the Common
Stock for such date.

 

“Responsible Officer” means the Chairman of the Board, Chief
Executive Officer, the President, the Vice President, the Chief Financial
Officer, the Controller, the Chief Accounting Officer, the Treasurer, an
Assistant Treasurer, the Secretary or an Assistant Secretary of the Company, or
any other officer of the Company specified in an applicable Board Resolution,
supplemental indenture or Officer’s Certificate relating to the Notes.

 

“Schedule TO” means Schedule TO
under the Exchange Act or any successor or
similar schedule that may be promulgated thereunder.

 

“SEC” means the U.S.
Securities and Exchange Commission.

 

“Securities Act” means the
Securities Act of 1933, as amended, and the rules and regulations
promulgated thereunder.

 

“Significant Subsidiary” means any
Subsidiary that would be a “significant subsidiary” as defined in Article 1,
Rule 1-02(w) of Regulation S-X, promulgated under the Securities Act, as
is in effect on the date of this Indenture.

 

“Stock Price” means the
price paid per share of Common Stock in the applicable Fundamental Change
transaction; provided that (1) if holders
of Common Stock receive only cash in such Fundamental Change transaction, the
Stock Price will be the cash amount paid per share of Common Stock and (2) in
any other Fundamental Change transaction, the Stock Price will be the average
of the Closing Sale Prices on each of the five consecutive Trading Days prior
to but not including the Effective Date of such Fundamental Change.

 

“Subsidiary” of any Person means (i) a corporation with
more than 50% of the outstanding Voting Stock of which is owned, directly or
indirectly, by such Person or by one or more other Subsidiaries of such Person
or by such Person and one or more Subsidiaries thereof or (ii) any other
Person (other than a corporation) in which such Person, or one or more other
Subsidiaries of such Person or such Person and one or more other Subsidiaries
thereof, directly or indirectly, has at least a majority ownership and power to
direct the policies, management and affairs thereof.

 

“TIA” means the
Trust Indenture Act of 1939, as amended (15 U.S.C. §§ 77aaa-77bbbb).

 

“Trading Day” means a day
during which trading in securities generally occurs on the NYSE or, if the
Common Stock is not then listed the NYSE or another United States

 

11

 

national
securities exchange nor quoted on NASDAQ or another established automated
over-the-counter trading market in the United States, on the principal other
market on which the Common Stock is then traded or quoted.

 

“Trading Price” means, with
respect to the Notes, on any date of determination, the average of the
secondary market bid quotations per Note obtained by the Conversion Agent for
$5.0 million principal amount of the Notes at approximately 3:30 p.m., New
York City time, on such determination date from two independent nationally
recognized securities dealers selected by the Company, which may include any of
the underwriters for the Notes; provided that
if at least two such bids cannot reasonably be obtained by the Conversion
Agent, but one such bid can reasonably be obtained by the Conversion Agent,
this one bid will be used. If the Conversion Agent cannot reasonably obtain at
least one bid for $5.0 million principal amount of the Notes from a nationally
recognized securities dealer or, in the Company’s reasonable judgment, the bid
quotations are not indicative of the secondary market value of the Notes, then
the trading price of the Notes, as determined by the Company, will equal (a) the
then-Applicable Conversion Rate of the Notes multiplied by (b) the Closing
Sale Price of the Common Stock on such determination date. Any such
determination will be conclusive absent manifest error.

 

“Treasury Rate” means, with respect to any Redemption Date,
the rate per annum equal to the semiannual yield to maturity of the Comparable
Treasury Issue, calculated by the Company on the third business day preceding
such Redemption Date using a price for the Comparable Treasury Issue (expressed
as a percentage of its principal amount) equal to the Comparable Treasury Price
for such Redemption Date.

 

“Trustee” means U.S.
Bank National Association until a successor replaces it in accordance with the
applicable provisions of this Indenture and thereafter means the successor
serving hereunder.

 

 “Voting Stock” of any specified Person as of any date means the Capital
Stock of such Person that is at the time entitled to vote in the election of
the Board of Directors of such Person.

 

(b)                                 Other
Definitions.

 

	
  Term

  	
   

  	
  Defined
  in

  Section

  
	
  “Authentication Order”

  	
   

  	
  2.02

  
	
  “Cash Settlement Notice
  Period”

  	
   

  	
  8.02(b)

  
	
  “Conversion Agent”

  	
   

  	
  2.03

  
	
  “Conversion Date”

  	
   

  	
  8.03(a)

  
	
  “Conversion Notice”

  	
   

  	
  8.03(a)

  
	
  “Conversion Rate”

  	
   

  	
  8.01(d)

  
	
  “Conversion Retraction
  Period”

  	
   

  	
  8.02(b)

  

 

12

 

	
  Term

  	
   

  	
  Defined
  in

  Section

  
	
  “Distributed Asset”

  	
   

  	
  8.05(a)(4)

  
	
  “DTC”

  	
   

  	
  2.03

  
	
  “Event of Default”

  	
   

  	
  6.01

  
	
  “Expiration Date”

  	
   

  	
  8.05(a)(7)

  
	
  “Fundamental Change
  Conversion Right Notice”

  	
   

  	
  4.07(a)

  
	
  “Fundamental Change
  Repurchase Date”

  	
   

  	
  4.07(a)

  
	
  “Fundamental Change
  Repurchase Notice”

  	
   

  	
  4.07(a)(3)(c)

  
	
  “Fundamental Change
  Repurchase Right Notice”

  	
   

  	
  4.07(a)(3)(b)

  
	
  “Make-Whole Premium”

  	
   

  	
  3.01(a)

  
	
  “Moody’s”

  	
   

  	
  6.01

  
	
  “Paying Agent”

  	
   

  	
  2.03

  
	
  “Registrar”

  	
   

  	
  2.03

  
	
  “Remaining Life”

  	
   

  	
  3.01(a)

  
	
  “Repurchase Dates”

  	
   

  	
  4.08(a)

  
	
  “Repurchase Notice”

  	
   

  	
  4.08(b)

  
	
  “Repurchase Notice Deadline”

  	
   

  	
  4.08(b)

  
	
  “Repurchase Premium”

  	
   

  	
  8.05(a)(8)

  
	
  “Residual Value Shares”

  	
   

  	
  8.02(a)

  
	
  “S&P”

  	
   

  	
  6.01

  
	
  “Sale Price Condition”

  	
   

  	
  8.01(a)(1)

  
	
  “Settlement”

  	
   

  	
  8.03(c)

  
	
  “Spin-off”

  	
   

  	
  8.05(a)(5)

  
	
  “Trading Price Condition”

  	
   

  	
  8.01(a)(2)

  
	
  “Trigger Event”

  	
   

  	
  8.10

  

 

(c)                                  For
all purposes of the Indenture, except as otherwise expressly provided or unless
the context otherwise requires, the terms defined in this Article One have
the meanings assigned to them in this Article, and include the plural, as well
as the singular.

 

ARTICLE TWO

THE NOTES

 

Section 2.01.                                       Form and
Dating.

 

(a)                                  General.
The Notes and the Trustee’s certificate of authentication will be substantially
in the form of Exhibit A hereto. The Notes may have notations,
legends or endorsements required by law, stock exchange rule or usage. Each
Note will be dated the date of its authentication. The Notes shall be in
denominations of $2,000 and integral multiples of $1,000 in excess thereof.

 

13

 

The terms and
provisions contained in the Notes will constitute, and are hereby expressly
made, a part of this Indenture and the Company and the Trustee, by their
execution and delivery of this Indenture, expressly agree to such terms and
provisions and to be bound thereby. However, to the extent any provision of any
Note conflicts with the express provisions of this Indenture, the provisions of
this Indenture shall govern and be controlling.

 

(b)                                 Global
Notes. Notes issued in global form will be substantially in the form of Exhibit A
hereto (including the Global Note Legend thereon and the “Schedule of
Exchanges of Interests in the Global Note” attached thereto). Notes issued in
definitive form will be substantially in the form of Exhibit A
hereto (but without the Global Note Legend thereon and without the “Schedule of
Exchanges of Interests in the Global Note” attached thereto). Each Global Note
will represent such of the outstanding Notes as will be specified thereon and
each shall provide that it represents the aggregate principal amount of
outstanding Notes from time to time endorsed thereon and that the aggregate
principal amount of outstanding Notes represented thereby may from time to time
be reduced or increased, as appropriate, to reflect transfers, exchanges,
conversions and repurchases. Any endorsement of a Global Note to reflect the
amount of any increase or decrease in the aggregate principal amount of
outstanding Notes represented thereby will be made by the Trustee or the
Custodian, at the direction of the Trustee, in accordance with instructions
given by the Holder thereof as required by the Base Indenture or Article 8
hereof.

 

Section 2.02.                                       Execution
and Authentication.

 

At least one
Officer must sign the Notes for the Company by manual or facsimile signature.

 

If an Officer
whose signature is on a Note no longer holds that office at the time a Note is
authenticated, the Note will nevertheless be valid.

 

A Note will
not be valid until authenticated by the manual signature of the Trustee. The
signature will be conclusive evidence that the Note has been authenticated
under this Indenture.

 

The Trustee
will, upon receipt of a written order of the Company signed by two Officers (an
“Authentication Order”), authenticate Notes, including Additional Notes, in an
unlimited aggregate principal amount, subject to the provisions of this
Indenture. Each Authentication Order will specify the amount of Notes to be
authenticated, the date on which the Notes are to be authenticated and, in the
case of Additional Notes, the issue price of such Notes.

 

The Trustee
may appoint an authenticating agent acceptable to the Company to authenticate
Notes. An authenticating agent may authenticate Notes 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 Holders, the Company or an Affiliate of the
Company.

 

14

 

Section 2.03.                                       Registrar,
Paying Agent and Conversion Agent.

 

The Company
will maintain an office or agency where Notes may be presented for registration
of transfer or for exchange (“Registrar”), an office or agency where Notes may be presented for
payment (“Paying Agent”), and
an office or agency where Notes may be presented for conversion pursuant to Article 8
hereof (“Conversion Agent”). The Registrar will
keep a register of the Notes and of their transfer and exchange. The Company
may appoint one or more co-registrars and one or more additional paying agents
or conversion agents. The term “Registrar” includes any co-registrar, the term “Paying
Agent” includes any additional paying agent and the term “Conversion Agent”
includes any additional conversion agent. The Company may change any Registrar,
Paying Agent or Conversion Agent without notice to any Holder. The Company will
notify the Trustee in writing of the name and address of any Agent not a party
to this Indenture. If the Company fails to appoint or maintain another entity
as Registrar, Paying Agent or Conversion Agent, the Trustee shall act as such. The
Company or any of its Subsidiaries may act as Registrar, Paying Agent or
Conversion Agent.

 

The Company
initially appoints The Depository Trust Company (“DTC”)
to act as Depositary with respect to the Global Notes.

 

The Company
initially appoints the Trustee to act as the Registrar, Paying Agent and
Conversion Agent and to act as Custodian with respect to the Global Notes.

 

Section 2.04.                                       Paying
Agent To Hold Money in Trust.

 

The Company
will require each Paying Agent other than the Trustee to agree in writing that
the Paying Agent will hold in trust for the benefit of Holders or the Trustee
all money held by the Paying Agent for the payment of principal or interest on
the Notes, and will notify the Trustee of any default by the Company in making
any such payment. While any such default continues, the Trustee may 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 amounts paid. The Company at
any time may require a Paying Agent to pay all money held by it to the Trustee
and to account for any amounts paid. Upon payment over to the Trustee, the
Paying Agent (if other than the Company or a Subsidiary) will have no further
liability for the money. If the Company or a Subsidiary acts as Paying Agent,
it will segregate and hold in a separate trust fund for the benefit of the
Holders all money held by it as Paying Agent. Upon any bankruptcy or reorganization
proceedings relating to the Company, the Trustee will serve as Paying Agent for
the Notes.

 

Section 2.05.                                       Holder
Lists.

 

The Trustee
will preserve in as current a form as is reasonably practicable the most recent
list available to it of the names and addresses of all Holders and shall
otherwise comply with TIA § 312(a). If the Trustee is not the Registrar,
the Company will furnish to the Trustee at least five Business Days before each
interest payment date and at such other times

 

15

 

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 the Holders of Notes and
the Company shall otherwise comply with TIA § 312(a).

 

ARTICLE THREE

OPTIONAL REDEMPTION

 

Section 3.01.                                       Optional
Redemption.

 

(a)                                  The
Notes are subject to redemption, at the option of the Company, on or after November 20,
2008, and before November 20, 2010, in whole or in part, but only if the
Closing Sale Price of the Common Stock for at least 20 Trading Days in the 30
consecutive Trading Day period ending on the date one day prior to the day the
Company gives a notice of redemption is greater than 130% of the Applicable
Conversion Price on the date of such notice, at a redemption price in cash
equal to the sum of (1) 100% of the principal amount of the Notes to be
redeemed, plus (2) the sum, as determined by the Quotation Agent, of the
present values of the remaining scheduled payments of interest thereof from the
Redemption Date to November 20, 2010 (excluding interest accrued to the
Redemption Date) (the “Remaining Life”)
discounted from their respective scheduled payment dates to the Redemption Date
on a semiannual basis (assuming a 360-day year consisting of 30-day months) at
the Treasury Rate, as defined below, plus 50 basis points (the “Make-Whole Premium”), plus (3) accrued and unpaid
interest, if any, on the principal amount of the notes redeemed to the date of
redemption.

 

(b)                                 The
Make Whole Premium shall be paid in cash to the Holders of all Notes being
called for redemption by the Company on a Redemption Date prior to November 20,
2010, including to Holders of any Notes that may have been converted after the
date of the Redemption Notice and prior to such Redemption Date.

 

(c)                                  In
addition to the optional redemption of the Notes in accordance with the
provisions of Section 3.01(a), at any time on or after November 20,
2010, the Notes are subject to redemption, at the option of the Company, in
whole or in part, at a redemption price in cash equal to 100% of the principal
amount of the Notes called for redemption, together with accrued and unpaid
interest thereon, if any, to the Redemption Date.

 

Section 3.02.                                       Selection
and Notice of Redemption.

 

(a)                                  If
less than all of the Notes are to be redeemed, the Trustee will select Notes
for redemption on a pro rata basis,
by lot or by such method as the Trustee shall deem fair and equitable, except:

 

(1)                                  if
the Notes are listed on any national securities exchange, in compliance with
the requirements of the principal national securities exchange on which the
Notes are listed; or

 

16

 

(2)                                  if
otherwise required by law.

 

In the event
of redemption by lot, the particular Notes to be redeemed will be selected,
unless otherwise provided herein, not less than 30 nor more than 60 days prior
to the Redemption Date by the Trustee from the outstanding Notes not previously
called for redemption.

 

The Trustee
will promptly notify the Company in writing of the Notes selected for
redemption and, in the case of any Note selected for partial redemption, the
principal amount thereof to be redeemed. Notes and portions of Notes selected
will be in amounts of $2,000 or integral multiples of $1,000 in excess thereof;
except that if all of the Notes of a Holder are to be redeemed, the entire
outstanding amount of Notes held by such Holder, even if not a multiple of
$1,000, shall be redeemed. Except as provided in the preceding sentence,
provisions of this Indenture that apply to Notes called for redemption also
apply to portions of Notes called for redemption.

 

(b)                                 Notice
of redemption will be sent by first class mail, electronically or by other
means approved by the Trustee not less than 30 nor more than 60 days before the
Redemption Date to each Holder of Notes to be redeemed at its registered
address. If any Note is to be redeemed in part only, the notice of redemption
that relates to that Note will state the portion of the principal amount of the
Note to be redeemed. A Note in a principal amount equal to the unredeemed
portion of the Note will be issued in the name of the holder of the note upon
cancellation of the original Note. On and after the Redemption Date, interest
will cease to accrue on Notes or portions thereof called for redemption so long
as the Company has deposited with the Paying Agent for the Notes funds in
satisfaction of the redemption price (including accrued and unpaid interest, if
any, on the Notes to be redeemed) pursuant to this Indenture.

 

Section 3.03.                                       [Reserved.]

 

Section 3.04.                                       Effect
of Notice of Redemption.

 

Once notice of
redemption is sent in accordance with Section 3.02 hereof, Notes called
for redemption become irrevocably due and payable on the Redemption Date. A
notice of redemption may not be conditional.

 

Section 3.05.                                       Deposit
of Redemption Price.

 

Prior to 11:00 a.m.,
New York City time, on any Redemption Date, if not previously deposited, the
Company will deposit with the Trustee or with the Paying Agent money sufficient
to pay the redemption price of and accrued interest, if any, on all Notes to be
redeemed on that date. The Trustee or the Paying Agent will promptly return to
the Company any money deposited with the Trustee or the Paying Agent by the
Company in excess of the amounts necessary to pay the redemption price of, and
accrued interest, if any, on, all Notes to be redeemed.

 

17

 

Section 3.06.                                       Notes
Redeemed in Part.

 

Upon surrender
of a Note that is redeemed in part, the Company will issue and, upon receipt of
an Authentication Order, the Trustee will authenticate for the Holder at the
expense of the Company a new Note equal in principal amount to the unredeemed
portion of the Note surrendered. A Note may be redeemed in part, but only if
the principal amount of such Note to be redeemed is any integral multiple of
$1,000 and the principal amount of such security to remain outstanding after
such redemption is equal to $2,000 or any integral multiple of $1,000 in excess
thereof.

 

ARTICLE FOUR

COVENANTS

 

Section 4.01.                                       Payment
of Notes.

 

The Company
will pay or cause to be paid the principal of and interest, if any, on the
Notes on the dates and in the manner provided in the Notes. Principal and
interest, if any, will be considered paid on the date due if the Paying Agent,
if other than the Company or a Subsidiary thereof, holds as of 11:00 a.m. Eastern
Time on the due date money deposited by the Company in immediately available
funds and designated for and sufficient to pay all principal and interest then
due.

 

The Company
will pay interest on overdue principal at the then applicable interest rate on
the Notes to the extent lawful; it will pay interest on overdue installments of
interest (without regard to any applicable grace period) at the same rate to
the extent lawful.

 

Section 4.02.                                       Maintenance
of Office or Agency.

 

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

 

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

 

18

 

will give
prompt written notice to the Trustee of any such designation or rescission and
of any change in the location of any such other office or agency.

 

The Company
hereby designates the Corporate Trust Office of the Trustee as one such office
or agency of the Company.

 

Section 4.03.                                       Compliance
Certificate.

 

The Company
shall deliver to the Trustee within 120 days after the end of each fiscal year
an Officer’s Certificate stating that in the course of the performance by the
signer of his or her duties as a Responsible Officer of the Company, he or she
would normally have knowledge of any Default and whether or not such signer
knows of any Default that occurred during such period. If such signer does have
such knowledge, the certificate shall describe the Default, its status and what
action the Company is taking or proposes to take with respect thereto. The
Company also shall comply with Section 314(a)(4) of the TIA.

 

The Company
shall deliver to the Trustee, as soon as possible and in any event within five
days after the Company becomes aware of the occurrence of any Event of Default
or an event which, with notice or the lapse of time or both, would constitute
an Event of Default, an Officer’s Certificate setting forth the details of such
Event of Default or Default and the action which the Company is taking or
proposes to take with respect thereto.

 

Section 4.04.                                       Reservation
of Common Stock.

 

The Company
shall at all times reserve and keep available, free from preemptive rights, out
of its authorized but unissued Common Stock or shares held in treasury by the
Company, for the purpose of effecting the conversion of Notes, the full number
of shares of Common Stock then issuable upon the conversion of all outstanding
Notes.

 

Section 4.05.                                       Issuance
of Shares.

 

All shares of
Common Stock delivered upon conversion or repurchase of the Notes shall be
newly issued shares or shares held in treasury by the Company, shall have been
duly authorized and validly issued and shall be fully paid and nonassessable,
and shall be free from preemptive rights and free of any lien or adverse claim.

 

Section 4.06.                                       Transfer
Taxes.

 

If a Holder
converts Notes for shares of Common Stock, the Company will pay any and all
documentary, stamp or similar issue or transfer tax due on the issue or shares
of Common Stock upon the conversion. The Company shall not, however, be
required to pay any tax or duty that may be payable in respect of any transfer
involved in the issue and delivery of shares of Common Stock in a name other
than that of the Holder of the Note or Notes to be converted, and no such issue
or delivery shall be made unless and until the Person requesting 

 

19

 

such issue has
paid to the Company the amount of any such tax or duty, or has established to
the satisfaction of the Company that such tax or duty has been paid.

 

Section 4.07.                                       Offer
To Repurchase upon a Fundamental Change.

 

Subject to Section 4.07(d) hereof,
upon the occurrence of a Fundamental Change at any time prior to stated Maturity,
each Holder may require the Company to repurchase the Notes on a date chosen by
the Company in its sole discretion that is no less than 20 Business Days and no
more than 35 Business Days (subject to extension to comply with applicable law)
after the Company sends the Fundamental Change Repurchase Right Notice (the “Fundamental Change Repurchase Date”), and
the Company shall repurchase on the Fundamental Change Repurchase Date, any or
all Notes submitted for repurchase for cash, or any portion of the initial
principal amount thereof that is equal to $2,000 or an integral multiple of
$1,000, provided that the principal amount of such security to remain
outstanding is equal to $2,000 or an integral multiple of $1,000, at a price
equal to (i) 100% of the aggregate principal amount thereof; plus (ii) accrued
and unpaid interest, if any, to but not including the Fundamental Change
Repurchase Date, unless such Fundamental Change Repurchase Date falls after a
Regular Record Date and on or prior to the corresponding Interest Payment Date,
in which case the Company shall pay the full amount of accrued and unpaid
interest payable on such Interest Payment Date to the Holder of record at the
close of business on the corresponding Regular Record Date. At least 15
Business Days prior to the anticipated Effective Date of the Fundamental Change
(or if the Company does not have actual notice of a Fundamental Change, as soon
as the Company has actual notice of such Fundamental Change), the Company will
provide to all Holders of the Notes, the Trustee, the Paying Agent and the
Conversion Agent a conversion right notice (the “Fundamental
Change Conversion Right Notice”) stating:

 

(1)               if
applicable, whether the Company will adjust the Conversion Rate and related
conversion obligation pursuant to Section 8.05(e) hereof; or

 

(2)               whether
the Company expects that Holders will have the right to require the Company to
repurchase their Notes as described in this Section 4.07; and

 

(3)               that
the Holders of the Notes have the right to convert their Notes in accordance
with Section 8.01 hereof.

 

(b)                                 No
later than 15 Business Days following the Effective Date of such Fundamental
Change transaction (or if the Company does not have actual notice of a Fundamental
Change, as soon as the Company has actual notice of such Fundamental Change)
(which Fundamental Change results in the Holders of Notes having the right to
cause the Company to repurchase their Notes) the Company shall provide to all
Holders of the Notes, the Trustee, the Paying Agent and the Conversion Agent a
notice of the occurrence of the Fundamental Change and of the resulting
repurchase right (the “Fundamental Change
Repurchase Right Notice”) stating:

 

20

 

(1)               the
events causing the Fundamental Change;

 

(2)               if
the Company has elected to adjust the Conversion Rate and related conversion
obligation as described in Section 8.05(e) hereof pursuant to a
Fundamental Change that falls under clause (2), (3) or (4) of the
definition of Fundamental Change, the Conversion Rate and any adjustments to
the Conversion Rate;

 

(3)               the
Effective Date, if applicable;

 

(4)               the
last date on which a Holder may exercise such repurchase right;

 

(5)               the
Fundamental Change repurchase price;

 

(6)               the
Fundamental Change Repurchase Date;

 

(7)               the
name and address of the Paying Agent and the Conversion Agent;

 

(8)               that
the Notes with respect to which the Fundamental Change Repurchase Right Notice
has been given may be converted only if the Holder thereof withdraws any
Fundamental Change Repurchase Notice previously delivered by such Holder in
accordance with the terms of this Indenture; and

 

(9)               the
procedures that Holders must follow to require the Company to repurchase their
Notes.

 

Simultaneously
with providing such Fundamental Change Repurchase Right Notice, the Company
will issue a press release and publish the information contained in such notice
through a public medium customary for such press releases.

 

(c)                                  A
Holder may exercise its right specified in Section 4.07(a) upon delivery
of a written notice of repurchase (a “Fundamental Change
Repurchase Notice”), substantially
in the form of Exhibit B hereto, to the Paying Agent at any time
prior to 5:00 p.m., New York City time, on the second Business Day
immediately preceding the Fundamental Change Repurchase Date, stating:

 

(1)               the
Applicable Procedures or, if such Holder holds Definitive Notes, the
certificate numbers of the Notes which the Holder will deliver to be
repurchased;

 

(2)               the
portion of the principal amount of the Notes which the Holder will deliver to
be repurchased, which portion must be in principal amounts of $2,000 or an integral
multiple of $1,000 in excess thereof; and

 

(3)               that
such Notes are to be purchased by the Company as of the Fundamental Change
Repurchase Date pursuant to the terms and conditions specified in the Notes and
in this Indenture.

 

21

 

If the Notes
are not in certificated form, the Fundamental Change Repurchase Notice must
comply with the Applicable Procedures.

 

The delivery
of such Notes (either through the surrender of Definitive Notes or through the
delivery of beneficial interests in a Global Note in accordance with the
Applicable Procedures) to the Paying Agent with, or at any time after delivery
of, the Fundamental Change Repurchase Right Notice (together with all necessary
endorsements) at the offices of the Paying Agent shall be a condition
to the receipt by the Holder of payment therefor; provided, however, that such
payment shall be so paid pursuant to this Section 4.07 only if the Notes
so delivered to the Paying Agent shall conform in all respects to the
description thereof in the related Fundamental Change Repurchase Notice. Any
repurchase by the Company pursuant to the provisions of this Section 4.07
shall be consummated by the delivery of the consideration to be received by the
Holder promptly following the later of the Fundamental Change Repurchase Date
and the time of delivery of the Notes.

 

Unless the
Company defaults in the payment for the Notes to be repurchased pursuant to this
Section 4.07, such Notes will cease to be outstanding and interest, if
any, shall cease to accrue on the Notes or portions thereof called for
repurchase on the Fundamental Change Repurchase Date (whether or not book-entry
transfer of the Notes is made or whether or not the Note is delivered to the
Paying Agent) and all other rights of the Holders of the Notes to be
repurchased pursuant to this Section 4.07 shall terminate (other than the
right to receive payment upon delivery or transfer of the Notes).

 

(d)                                 The
Company will comply with the requirements of Rule 13e-4 and Rule 14e-1
under the Exchange Act, including the filing of a Schedule TO if required,
and will comply with the requirements of any other federal and state securities
laws and regulations thereunder to the extent those laws and regulations are
applicable in connection with the repurchase of the Notes by the Company as a
result of a Fundamental Change. To the extent that the provisions of any
securities laws or regulations conflict with the provisions of this Section 4.07,
the Company will comply with the applicable securities laws and regulations and
will not be deemed to have breached its obligations under this Section 4.07
by virtue of such conflict.

 

(e)                                  On
the Fundamental Change Repurchase Date, the Company will, to the extent lawful:

 

(1)               accept
for payment all Notes or portions thereof properly tendered;

 

(2)               deposit
with the Paying Agent an amount equal to the payment in respect of all Notes or
portions of Notes properly tendered; and

 

(3)               deliver
or cause to be delivered to the Trustee the Notes so accepted together with an
Officer’s Certificate stating the aggregate principal amount of Notes or
portions of Notes being purchased by the Company in accordance with the terms
of this Section 4.07.

 

22

 

The Paying
Agent will promptly mail to each Holder of Notes properly tendered the payment
for such Notes, and the Trustee will promptly authenticate and mail (or cause
to be transferred by book entry) to each Holder a new Note equal in principal
amount to any unpurchased portion of the Notes surrendered, if any; provided that each new Note will be in a principal amount of
$2,000 and integral multiples of $1,000 in excess thereof.

 

(f)                                    Notwithstanding
anything contained herein to the contrary, Holders of the Notes will not have
the right to require the Company to repurchase any Notes pursuant to the occurrence
of any of the events identified in clauses (2), (3) or (4) of the
definition of Fundamental Change (and the Company will not be required to
deliver the Fundamental Change Repurchase Right Notice incidental thereto), if
either:

 

(1)               the
Closing Sale Price of the Company’s Common Stock for any five Trading Days
within the period of ten (10) consecutive Trading Days ending (A) immediately
after the later of the Fundamental Change or the public announcement of the
Fundamental Change under clause (2) of the definition of Fundamental
Change; or (B) immediately before the Fundamental Change in the case of a
Fundamental Change under clauses (3) or (4) of the definition of
Fundamental Change, equals or exceeds 105% of the Applicable Conversion Price
of the Notes in effect on each of those five Trading Days; or

 

(2)               at
least 90% of the consideration paid for the Company’s Common Stock (excluding
cash payments for fractional shares, cash payments made pursuant to dissenters’
appraisal rights and cash dividends) in a Fundamental Change under clause (2) and/or
clause (3) of the definition of Fundamental Change consists of shares of
common stock traded on the NYSE or another U.S. national securities exchange or
quoted on NASDAQ or another established automated over-the-counter trading
market in the United States (or will be so traded or quoted immediately following
the merger or consolidation) and, as a result of the merger or consolidation,
the Notes become convertible into such shares of such common stock.

 

(g)                                 Upon
receipt by the Paying Agent of a Fundamental Change Repurchase Notice specified
in Section 4.07(c) hereof, the Holder of the Notes in respect of
which such Fundamental Change Repurchase Notice was given shall (unless such
Fundamental Change Repurchase Notice is withdrawn as specified in Section 4.07(h) hereof)
thereafter be entitled to receive solely the payment with respect to such Notes.
Such payment shall be paid to such Holder, subject to receipts of cash by the
Paying Agent, promptly following the later of (a) the Fundamental Change
Repurchase Date (provided the conditions in Section 4.07(c) have
been satisfied) and (b) the time of book-entry transfer or the delivery of
such Notes to the Paying Agent by the Holder thereof in the manner required by Section 4.07(c).
Notes in respect of which a Fundamental Change Repurchase Notice has been given
by the Holder thereof may not be converted pursuant to Article 8 on or
after the date of the delivery of such Fundamental Change Repurchase Notice
unless such Fundamental Change Repurchase Notice has first been validly
withdrawn as specified in Section 4.07(h) hereof.

 

23

 

(h)                                 Notwithstanding
anything contained herein to the contrary, any Holder delivering to the Paying
Agent the Fundamental Change Repurchase Notice contemplated by Section 4.07(c) hereof
shall have the right to withdraw such Fundamental Change Repurchase Notice, in
whole or in part, by means of a written notice of withdrawal delivered to the
Paying Agent at any time prior to 5:00 p.m., New York City time, on the
second Business Day immediately preceding the Fundamental Change Repurchase
Date, specifying:

 

(1)               the
principal amount of the Notes with respect to which such notice of withdrawal
is being submitted;

 

(2)               the
certificate numbers of the Definitive Notes, if any, in respect of which such
notice of withdrawal is being submitted; and

 

(3)               the
principal amount, if any, of such Notes which remain subject to the original
Fundamental Change Repurchase Notice and which have been or will be delivered
for repurchase by the Company.

 

(i)                                     The
Trustee shall be under no obligation to ascertain the occurrence of a
Fundamental Change or to give notice with respect thereto. The Trustee may
conclusively assume, in the absence of written notice to the contrary from the
Company, that no Fundamental Change has occurred.

 

Section 4.08.                                       Offer
to Repurchase on November 15, 2010, 2015 and 2020.

 

(a)                                  On
each of November 15, 2010, 2015 and 2020 (the “Repurchase
Dates”), each Holder may require the Company to repurchase the Notes
held by such Holder, and the Company shall repurchase on each of the Repurchase
Dates, any or all Notes submitted for repurchase for cash, at a price equal to
100% of the aggregate principal amount thereof plus accrued and unpaid
interest, if any, to but not including the applicable Repurchase Date.

 

(b)                                 In
order to exercise the right to require the Company to repurchase the Notes on
any of the Repurchase Dates:

 

(i)                  the Holder of any Definitive Note to
be repurchased must:  (i) complete
and manually sign a notice substantially in the form of Exhibit D
hereto (the “Repurchase Notice”); (ii) deliver
the Repurchase Notice and the Definitive Note to the Trustee and the Company;
and (iii) if required, furnish appropriate endorsements and transfer documents;
or

 

(ii)               the holder of beneficial interests in any
Global Note to be repurchased must comply with the Applicable Procedures to
cause the beneficial interests in such Global Note to be delivered to the
Trustee,

 

24

 

and in either
case, the Holder of a Definitive Note or holder of beneficial interests in a
Global Note will, if required, pay all transfer or similar taxes that the
Company is not otherwise required to pay pursuant to Section 4.06 hereof.

 

The Holder of
a Definitive Note or holder of a beneficial interest in a Global Note must
complete the requirements of this Section 4.08(b) no later than the
close of business on the Business Day prior to the applicable Repurchase Date
(the “Repurchase Notice Deadline”) for purposes of this Article 4. On and after the Repurchase
Notice Deadline, the redemption by such Holder or holder, as set forth in the
Repurchase Notice, shall become irrevocable.

 

Notes shall be
deemed to have been repurchased immediately prior to the close of business on
the Repurchase Date, and at such time the rights of the Holders of such Notes
as Holders shall cease, and the Person or Persons entitled to receive the cash
payment payable upon repurchase shall be treated for all purposes as the payee
or payees of such payment at such time. Following any Repurchase Date, the
Company shall satisfy its obligations with respect to such repurchase by
either:

 

(i)                                     delivering
to the Trustee, for delivery to the Holder (or such other Person as may be
named in the relevant Repurchase Notice), the cash payment payable upon such
repurchase; or

 

(ii)                                  delivering
to such Holder (or such other Person as may be named in the relevant Repurchase
Notice) the cash payment payable upon such repurchase in accordance with the
Applicable Procedures.

 

ARTICLE FIVE

SUCCESSORS

 

Section 5.01.                                       Merger,
Consolidation, or Sale of Assets.

 

The Company
shall not, directly or indirectly, consolidate or merge with or into any other
Person in a transaction in which the Company is not the surviving corporation
or convey, transfer or lease the properties and assets of the Company
substantially as an entirety to any successor Person, unless:

 

(1)               the
successor Person, if any, is:

 

(A)                              a corporation organized
and existing under the laws of the United States, any state of the United States,
or the District of Columbia, and

 

(B)                                such Person assumes the
Company’s obligations on the Notes and under this Indenture pursuant to
agreements reasonably satisfactory in form and substance to the Trustee;

 

25

 

(2)               immediately
after giving effect to the transaction, no Default will have occurred and be
continuing; and

 

(3)               the
Company shall have delivered to the Trustee an Officer’s Certificate and an
Opinion of Counsel, each stating that such consolidation, merger, conveyance,
transfer or lease and, if a supplemental indenture is required in connection
with such transaction, such supplemental indenture, comply with this Article Five
and that all conditions precedent herein provided for relating to such transaction
have been satisfied.

 

This Section 5.01
will not apply to a merger of the Company with an Affiliate solely for the
purpose of reincorporating the Company in another jurisdiction.

 

Section 5.02.                                       Successor
Corporation Substituted.

 

Upon any consolidation
or merger, or any sale, assignment, transfer, lease, conveyance or other
disposition of all or substantially all of the properties or assets of the
Company in a transaction that is subject to, and that complies with the
provisions of, Section 5.01 hereof, the successor Person formed by such
consolidation or into or with which the Company is merged or to which such
sale, assignment, transfer, lease, conveyance or other disposition is made
shall succeed to, and be substituted for (so that from and after the date of
such consolidation, merger, sale, assignment, transfer, lease, conveyance or
other disposition, the provisions of this Indenture referring to the “Company”
shall refer instead to the successor Person and not to the Company), 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; provided, however, that the predecessor Company shall not be relieved from the
obligation to pay the principal of and interest on the Notes except in the case
of a sale of all of the Company’s assets in a transaction that is subject to,
and that complies with the provisions of, Section 5.01 hereof.

 

ARTICLE SIX

DEFAULTS AND REMEDIES

 

Section 6.01.                                       Events
of Default.

 

Each of the
following is an “Event of Default”:

 

(1)               a
default in the payment of any installment of interest upon any of the Notes as
and when the same shall become due and payable, and continuance of such default
for a period of 30 days;

 

(2)               default
in the payment of all or any part of the principal of any of the Notes as and
when the same shall become due and payable at Maturity;

 

26

 

(3)               default
on the part of the Company in the performance, or breach by the Company, of any
other covenant or agreement on the part of the Company set forth in the Notes
or in this Indenture (other than a covenant or agreement in respect of which a
default or breach by the Company is specifically dealt with in this Section 6.01
and other than those which have been included in the Notes, if any, or this
Indenture solely for the benefit of Securities of any series other than the
series of the Notes), and continuance of such default or breach without cure or
waiver for a period of 90 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 Notes at the
time Outstanding, a written notice specifying such failure and requiring the
same to be remedied;

 

(4)               the
Company fails to pay the purchase price of any Note when due (including,
without limitation, on any Repurchase Date, the delivery of cash as a return of
principal, any cash in lieu of fractional shares, and any shares, as the case
may be, upon conversion of Notes within the time period required by this
Indenture);

 

(5)               the
Company fails to provide timely notice of a Fundamental Change, if required by
this Indenture, if such failure continues for 30 days after notice to the
Company of its failure to do so;

 

(6)               any
indebtedness for money borrowed by the Company or one of its Significant
Subsidiaries (all or substantially all of the outstanding voting securities of
which are owned, directly, or indirectly, by the Company) in an aggregate
outstanding principal amount in excess of $100.0 million is not paid at final
maturity or upon acceleration and such indebtedness is not discharged, or such
acceleration is not cured or rescinded, within 10 days after written notice as
provided in Section 6.02 of this Indenture, provided,
however, that in the event the Notes
receive at any later date a rating of BBB- or greater by Standard &
Poor’s Corporation (“S&P”) or
Baa3 or greater by Moody’s Investors Service, Inc. (“Moody’s”) (or if such ratings are not
issued for the Notes by S&P or Moody’s, the corporate rating or successor
equivalent (in the case of S&P) or the senior implied rating or successor
equivalent (in the case of Moody’s) of the Company), then this clause (6) shall
not be applicable and shall be of no further force and effect upon and after
the date the Notes receive any such rating;

 

(7)               failure
by the Company or any of its Significant Subsidiaries (all or substantially all
of the outstanding voting securities of which are owned, directly, or
indirectly, by the Company)  to pay final
and non-appealable judgments entered by a court or courts of competent
jurisdiction, the aggregate uninsured or unbonded portion of which is at least
$100.0 million, if the judgments are not paid, discharged or stayed within 60
days; provided, however,
that in the event the Notes receive at any later date a rating of BBB- or
greater by S&P or Baa3 or greater by Moody’s (or if such ratings are not
issued for the Notes by S&P or Moody’s, the corporate rating or successor
equivalent (in the case of S&P) or the senior implied rating or successor
equivalent (in

 

27

 

the case of
Moody’s) of the Company), then this clause (7) shall not be applicable and
shall be of no further force or effect upon and after the date the Notes
receive such rating;

 

(8)               the
Company or any of its Subsidiaries that is a Significant Subsidiary or any
group of Subsidiaries of the Company that, taken together, would constitute a
Significant Subsidiary pursuant to or within the meaning of Bankruptcy Law:

 

(A)                              commences a voluntary
case,

 

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

 

(C)                                consents to the
appointment of a custodian of it or for all or substantially all of its
property, or

 

(D)                               makes a general
assignment for the benefit of its creditors; and

 

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

 

(A)                              is for relief against the
Company or any of its Subsidiaries that is a Significant Subsidiary or any
group of Subsidiaries of the Company that, taken together, would constitute a
Significant Subsidiary in an involuntary case;

 

(B)                                appoints a custodian of
the Company or any of its Subsidiaries that is a Significant Subsidiary or any
group of Subsidiaries of the Company that, taken together, would constitute a
Significant Subsidiary or for all or substantially all of the property of the
Company or any of its Subsidiaries that is a Significant Subsidiary or any
group of Subsidiaries of the Company that, taken together, would constitute a
Significant Subsidiary; or

 

(C)                                orders the liquidation
of the Company or any of its Subsidiaries that is a Significant Subsidiary or
any group of Subsidiaries of the Company that, taken together, would constitute
a Significant Subsidiary;

 

and the order or decree remains unstayed and
in effect for 90 consecutive days.

 

The Events of
Default set forth in this Section 6.01 supersede and replace any Events of
Default applicable to the Notes set forth in Section 6.01 of the Base
Indenture, and
such Events of Default under the Base Indenture shall not at any time apply to
the Notes.

 

28

 

Section 6.02.                                       Acceleration.

 

(a)                                  In
the case of an Event of Default specified in clause (8) or (9) of Section 6.01
hereof with respect to the Company, all outstanding Notes will become due and
payable immediately without further action or notice. If any other Event of Default
occurs and is continuing, the Trustee or the Holders of at least 25% in
aggregate principal amount of the then outstanding Notes may declare all the
Notes to be due and payable immediately. Upon any such declaration, the Notes
shall become due and payable immediately.

 

(b)                                 Notwithstanding
the foregoing, if an Event of Default specified in clause (6) of Section 6.01
occurs resulting in a declaration of acceleration of the Notes, such
declaration of acceleration shall be automatically annulled if such Event of Default
triggering such declaration of acceleration pursuant to clause (6) of Section 6.01
shall have been remedied or cured by the Company or any of its Subsidiaries or
waived by the holders of the relevant indebtedness within 60 days of the
declaration of acceleration with respect thereto and if (i) the annulment
of the acceleration of the Notes would not conflict with any judgment or decree
of a court of competent jurisdiction and (ii) all existing Events of
Default, except nonpayment of principal, premium or interest on the Notes that
became due and payable solely because of the acceleration of the Notes, have
been cured or waived.

 

(c)                                  At any time after a declaration of
acceleration with respect to the Notes as described in Section 6.02(a),
the Holders of a majority in aggregate principal amount of the outstanding
Notes may rescind and cancel such declaration and its consequences:  (i) if the rescission would not conflict
with any judgment or decree of a court of competent jurisdiction; (ii) if
all existing Events of Default have been cured or waived except nonpayment of
principal or interest that has become due solely because of the acceleration; (iii) to
the extent the payment of such interest is lawful, interest on overdue
installments of interest and overdue principal, which has become due otherwise
than by such declaration of acceleration, has been paid; and (iv) if the
Company has paid the Trustee its reasonable compensation and reimbursed the
Trustee for its expenses, disbursements and advances. No such rescission shall
affect any subsequent Default or impair any right consequent thereto.

 

Section 6.03.                                       Other
Remedies.

 

If an Event of
Default occurs and is continuing, the Trustee may pursue any available remedy
to collect the payment of principal and interest on the Notes or to enforce the
performance of any provision of the Notes or this Indenture.

 

The Trustee
may maintain a proceeding even if it does not possess any of the Notes or does
not produce any of them in the proceeding. A delay or omission by the Trustee
or any Holder of a Note in exercising any right or remedy accruing upon an
Event of Default shall not impair the right or remedy or constitute a waiver of
or acquiescence in the Event of Default. All remedies are cumulative to the
extent permitted by law.

 

29

 

Section 6.04.                                       Waiver
of Past Defaults.

 

Holders of not
less than a majority in aggregate principal amount of the then outstanding
Notes by notice to the Trustee may on behalf of the Holders of all of the Notes
waive an existing Default and its consequences hereunder, except a continuing
Default in:

 

(1)               the payment of the principal of, or
interest on, the Notes (including in connection with an offer to purchase); provided, however, that the Holders of a majority in aggregate principal
amount of the then outstanding Notes may rescind an acceleration and its
consequences, including any related payment default that resulted from such acceleration;

 

(2)               the conversion of any Note into shares
of Common Stock in accordance with the provisions of such Note and this
Indenture; or

 

(3)               compliance with any of the provisions of
this Indenture that would require the consent of the Holder of each outstanding
Note 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 6.05.                                       Control
by Majority.

 

Holders of a
majority in aggregate principal amount of the then outstanding Notes may direct
the time, method and place of conducting any proceeding for exercising any
remedy available to the Trustee or exercising any trust or power conferred on
it. However, the Trustee may refuse to follow any direction that conflicts with
law or this Indenture that the Trustee determines may be unduly prejudicial to
the rights of other Holders of Notes or that may involve the Trustee in personal
liability.

 

Section 6.06.                                       Limitation
on Suits.

 

A Holder may
pursue a remedy with respect to this Indenture or the Notes only if:

 

(1)               such Holder gives to the Trustee written
notice that an Event of Default is continuing;

 

(2)               Holders of at least 25% in aggregate
principal amount of the then outstanding Notes make a written request to the
Trustee to pursue the remedy as Trustee;

 

30

 

(3)               such Holder or Holders offer and, if
requested, provide to the Trustee security or indemnity reasonably satisfactory
to the Trustee against any loss, liability or expense;

 

(4)               the Trustee does not comply with the
request within 60 days after receipt of the request and the offer of security
or indemnity; and

 

(5)               during such 60-day period, Holders of a
majority in aggregate principal amount of the then outstanding Notes do not
give the Trustee a direction inconsistent with such request.

 

A Holder of a
Note may not use this Indenture to prejudice the rights of another Holder of a
Note or to obtain a preference or priority over another Holder of a Note.

 

Section 6.07.                                       Rights
of Holders of Notes To Receive Payment or Effect Conversion.

 

Notwithstanding
any other provision of this Indenture, the right of any Holder of a Note to
receive payment of principal and interest on the Note, on or after the
respective due dates expressed in the Note (including in connection with an
offer to purchase), or to bring suit for the enforcement of any such payment on
or after such respective dates or the right to convert Notes in accordance with
Article 8 of this Indenture, shall not be impaired or affected without the
consent of such Holder.

 

Section 6.08.                                       Collection
Suit by Trustee.

 

If an Event of
Default specified in Section 6.01(1) or (2) hereof occurs and is
continuing, the Trustee is authorized to recover judgment in its own name and
as trustee of an express trust against the Company for the whole amount of
principal of and interest remaining unpaid on, the Notes and interest on
overdue principal and, to the extent lawful, interest and such further amount
as shall be sufficient to cover the costs and expenses of collection, including
the reasonable compensation, expenses, disbursements and advances of the
Trustee, its agents and counsel.

 

Section 6.09.                                       Trustee
May File Proofs of Claim.

 

The Trustee is
authorized to file such proofs of claim and other papers or documents as may be
necessary or advisable in order to have the claims of the Trustee (including
any claim for the reasonable compensation, expenses, disbursements and advances
of the Trustee, its agents and counsel) and the Holders of the Notes allowed in
any judicial proceedings relative to the Company (or any other obligor upon the
Notes), its creditors or its property and shall be entitled and empowered to
collect, receive and distribute any money or other property payable or
deliverable on any such claims and any custodian in any such judicial
proceeding is hereby authorized by each Holder to make such payments to the
Trustee, and in the event that the Trustee shall consent to the making of such
payments directly to the Holders, to pay to the Trustee any amount due to it
for the reasonable compensation, expenses,

 

31

 

disbursements
and advances of the Trustee, its agents and counsel, and any other amounts due
the Trustee under Section 7.07 of the Base Indenture. To the extent that
the payment of any such compensation, expenses, disbursements and advances of
the Trustee, its agents and counsel, and any other amounts due the Trustee
under Section 7.07 of the Base Indenture out of the estate in any such proceeding,
shall be denied for any reason, payment of the same shall be secured by a Lien
on, and shall be paid out of, any and all distributions, dividends, money,
securities and other properties that the Holders may be entitled to receive in
such proceeding whether in liquidation or under any plan of reorganization or
arrangement or otherwise. Nothing herein contained shall be deemed to authorize
the Trustee to authorize or consent to or accept or adopt on behalf of any
Holder any plan of reorganization, arrangement, adjustment or composition
affecting the Notes or the rights of any Holder, or to authorize the Trustee to
vote in respect of the claim of any Holder in any such proceeding.

 

Section 6.10.                                       Priorities.

 

If the Trustee
collects any money pursuant to this Article 6, it shall pay out the money
in the following order:

 

First:  to the Trustee, its agents and attorneys for
amounts due under Section 7.07 of the Base Indenture, including payment of
all compensation, expenses and liabilities incurred, and all advances made, by
the Trustee and the costs and expenses of collection;

 

Second:  to Holders of Notes for amounts due and
unpaid on the Notes for principal and interest, ratably, without preference or
priority of any kind, according to the amounts due and payable on the Notes for
principal and interest, respectively; and

 

Third:  to the Company or such party as a court of
competent jurisdiction shall direct.

 

The Trustee
may fix a record date and payment date for any payment to Holders of Notes
pursuant to this Section 6.10. If a record date is fixed, the Trustee
shall send, by first class mail, electronically or by any other means approved
by the Trustee to the Holders of the Notes of record a notice at least 30 days
but not more than 60 days before the payment date. Such notice shall
state:  (1) that a payment is being
made pursuant to this Section 6.10, (2) the relevant Default and the
circumstances giving rise to the collection of money pursuant to this Section 6.10,
(3) the payment date and (4) the amount of such payment per $1,000 of
Notes. Notwithstanding the foregoing, if the payment pursuant to this Section 6.10
is in respect of principal on the Notes, then such principal payment will be
conducted in accordance with the provisions set forth in Sections 3.02, 3.04
and 3.06 hereof.

 

Section 6.11.                                       Undertaking
for Costs.

 

In any suit
for the enforcement of any right or remedy under this Indenture or in any suit
against the Trustee for any action taken or omitted by it as a Trustee, a court
in its

 

32

 

discretion may
require the filing by any party litigant in the suit of an undertaking to pay
the costs of the suit, and the court in its discretion may assess reasonable
costs, including reasonable attorneys’ fees, against any party litigant in the
suit, having due regard to the merits and good faith of the claims or defenses
made by the party litigant. This Section 6.11 does not apply to a suit by
the Trustee, a suit by a Holder of a Note pursuant to Section 6.07 hereof,
or a suit by Holders of more than 10% in aggregate principal amount of the then
outstanding Notes.

 

ARTICLE SEVEN

APPOINTMENT OF U.S. BANK NATIONAL ASSOCIATION

 

Section 7.01.                                       Appointment
of U.S. Bank National Association.

 

The Company
hereby appoints the Trustee as trustee under the Indenture with respect to the
Notes. The Company shall execute and deliver such further instruments and do
such other things as the Trustee may reasonably require to more fully and
certainly vest and confirm in the Trustee all the rights, trusts, and powers
hereby delivered and confirmed upon the Trustee.

 

Section 7.02.                                       Acceptance
of Trustee.

 

The Trustee
hereby accepts its appointment as trustee with respect to the Notes and shall
hereby be vested with all of the authority, rights, powers, trusts, immunities,
duties, benefits and obligations of a Trustee under the Indenture.

 

Section 7.03.                                       Qualification
of Trustee.

 

The Trustee
hereby represents and warrants to the Company that the Trustee is qualified
under the provisions of Section 310 of the Trust Indenture Act of 1939, as
amended, and Article Seven of the Base Indenture to act as trustee with respect
to the Notes under the Indenture.

 

ARTICLE EIGHT

CONVERSION

 

Section 8.01.                                       Conversion
Right and Conversion Rate.

 

(a)                                  Subject
to and upon compliance with the provisions of this Article 8, at the
option of the Holder thereof, any portion of the principal amount of any Note
that is an integral multiple of $1,000 (provided that the principal amount of
such security to remain outstanding after such conversion is equal to $2,000)
may be converted into cash and, under certain circumstances set forth in Section 8.02
hereof, fully paid and non-assessable shares of Common Stock at the Conversion
Rate, determined as hereinafter provided, in effect at the

 

33

 

time of conversion. The Holders
of the Notes may surrender Notes for conversion at the Applicable Conversion
Rate prior to Maturity under any of the following circumstances:

 

(1)               prior to November 15, 2024, during
any Conversion Period, if the Closing Sale Price of the Common Stock for at
least 20 Trading Days in the 30 consecutive Trading Day period ending on the
first day of such Conversion Period is greater than 120% of the Applicable
Conversion Price on the first day of the Conversion Period (the “Sale Price Condition”);

 

(2)               prior to November 15, 2024, during
the five consecutive Business Day period following any five consecutive Trading
Day period in which the Trading Price of a Note for each day of that trading
period was less than 95% of the Closing Sale Price of the Common Stock on such
corresponding Trading Day as multiplied by the Applicable Conversion Rate (the “Trading Price Condition”);

 

(3)               if the Notes are called for redemption,
during the period commencing with the date that notice of redemption is first
sent to Holders pursuant to Section 3.02(b) and ending at the close
of business on the Business Day preceding the Redemption Date; provided that if less than all the Notes are called for
redemption, only those Notes called for redemption may be converted;

 

(4)               at any time on or after November 15,
2024; or

 

(5)               upon the occurrence of specified
corporate transactions set forth in Section 8.07 hereof.

 

(b)                                 If
any of the events described in clauses (2), (3) or (4) of the
definition of Fundamental Change occurs, Holders may surrender any Notes for
conversion during the period starting on the 15th Business Day prior
to the anticipated Effective Date of the applicable Fundamental Change and
ending at the close of business on the 15th Business Day after the
actual Effective Date of such Fundamental Change transaction (or such shorter
period as may be applicable if the Company did not have actual notice of the
Effective Date of a Fundamental Change 15 Business Days before the Effective
Date) or, if such transaction results in Holders having a right to require the
Company to repurchase the Notes, the Business Day preceding the Fundamental
Change Repurchase Date (as specified in the Fundamental Change Repurchase Right
Notice). In connection with such a Fundamental Change and in accordance with Section 4.07
hereof, the Company will send Holders a Fundamental Change Conversion Right
Notice at least 15 Business Days prior to the anticipated Effective Date of the
Fundamental Change (or such shorter period as may be applicable if the Company
did not have actual notice of the Effective Date 15 Business Days before the
Effective Date) in which the Company will notify Holders that, among other
things, they will have the right to convert the Notes. Upon such a conversion
in connection with any of the events described in clauses (2), (3) or (4) of
the definition of Fundamental Change, Holders will receive any increase in the
conversion rate pursuant to Section 8.05(e) hereof if such conversion
occurs within the time

 

34

 

frames specified therein. Notwithstanding
the foregoing, if the Effective Date of the Fundamental Change identified in
the Conversion Right Notice does not occur within 20 Business Days of the
anticipated Effective Date specified in such notice, then the right of Holders
to convert the Notes will terminate and, to the extent such Fundamental Change
is expected to occur at a later date, the Company again shall comply with the
requirements of this Section 8.01(b) at such later date in connection
with such Fundamental Change. If a Fundamental Change occurs, Holders may also
have the right, at the option of the Holders, to require the Company to
repurchase all or a portion of the Notes in accordance with Section 4.07
hereof in lieu of conversion pursuant to this Section 8.01(b). Upon determination
by the Company, the Conversion Agent or the Trustee that the Holders of the
Notes are entitled to convert the Notes in accordance with this Section 8.01(b),
the Company shall issue a press release and publicize the information on its
website.

 

(c)                                  In
case any Holder of Notes exercises its right to require the Company to
repurchase such Notes in accordance with Section 4.07 hereof, the
conversion right in respect of the Note, or portion thereof so submitted, shall
expire at the close of business on the last Business Day immediately preceding
the Fundamental Change Repurchase Date or such earlier date as the Notes are
presented for purchase, unless the Company defaults in making the payment due
upon repurchase, in which case such conversion right shall terminate at the
close of business on the date the default is cured and the Notes are purchased
by the Company (in each case subject to any Applicable Procedures with respect
to any Note). If any Holder has submitted Notes for repurchase upon a Fundamental
Change in accordance with Section 4.07 hereof, such Notes submitted for
repurchase may be converted only if such Holder withdraws the election for repurchase
in accordance with Section 4.07 hereof.

 

(d)                                 Notes
converted into shares of Common Stock shall initially will be converted at a Conversion
Price of $5.90 per share. The rate at which shares of Common Stock shall be
delivered upon conversion (herein called the “Conversion
Rate”) shall be initially 169.4341 shares of Common Stock for each
$1,000 principal amount of Notes. The Conversion Rate will be adjusted under
the circumstances provided in Section 8.05. All calculations under this Article shall
be made to the nearest 1/10th cent or to the nearest 1/10,000ths of a share, as
the case may be.

 

(e)                                  The
Conversion Agent shall determine whether the Sale Price Condition or the
Trading Price Condition has been satisfied in accordance with Section 8.11(a) and
notify the Company and the Trustee.

 

Section 8.02.                                       Conversion
Consideration.

 

(a)                                  Upon
surrendering any Notes for conversion, the Holder of such Notes shall receive,
in respect of each $1,000 principal amount of Notes:

 

(1)               cash in the amount equal to the lesser
of:

 

(A)                              the principal amount of
each Note, or

 

35

 

(B)                                the Conversion Value;
and

 

(2)               to the extent the Conversion Value
exceeds $1,000, a number of shares of Common Stock (the “Residual
Value Shares”) equal to the
sum of the Daily Trading Share Amounts for each of the 20 consecutive Trading
Days in the Applicable Conversion Reference Period; provided, however, that the
Company shall pay cash in lieu of fractional shares otherwise issuable upon
conversion of the Notes in accordance with Section 8.04.

 

If a Holder
receives Common Stock upon conversion of Notes, such Holder will also receive
the associated rights under any stockholder rights plan that the Company may
adopt, whether or not the rights have separated from the Common Stock at the
time of conversion unless, prior to conversion, the rights have expired,
terminated or been exchanged.

 

(b)                                 The
Company may elect to pay cash to Holders of Notes surrendered for conversion in
lieu of all or a portion of the Residual Value Shares issuable upon conversion
of such Notes. Upon such election, the Company shall provide notice to the
relevant Holders through the Trustee stating the amount to be satisfied in cash
(expressed as a percentage of each Residual Value Share that shall be paid in
cash in lieu of Common Stock) at any time on or before the date that is three
Business Days following receipt of any Holder’s Conversion Notice (the “Cash Settlement Notice Period”). If the Company timely
elects to pay cash for any portion of the Residual Value Shares otherwise
issuable to such Holder, such Holder may retract the Conversion Notice at any
time during the two Business Day period immediately following the Cash
Settlement Notice Period (the “Conversion Retraction Period”).
If the Company does not make such an election, no retraction can be made (and a
Conversion Notice shall be irrevocable). In addition, if the Company chooses to
settle all or any portion of the Residual Value Shares in cash in connection
with conversions within 20 days prior to the stated Maturity date of the Notes,
the Company shall send, on or prior to such stated Maturity date, a single
notice to the Trustee of the Residual Value Shares to be satisfied in cash
(expressed as a percentage of each Residual Value Share that shall be paid in
cash in lieu of Common Stock).

 

The amount of
cash payable in respect of each Residual Value Share otherwise issuable upon
conversion shall equal the sum of the Residual Cash Value for such share calculated
for each day of the Applicable Conversion Reference Period.

 

(c)                                  The
Company will determine the Conversion Value, the Daily Trading Share Amount,
the calculation of the excess of the Conversion Value over the principal amount
and the number of shares of Common Stock deliverable to Holders upon conversion
in satisfaction of such excess (assuming that the Company does not elect to pay
such excess in cash in accordance with clause (b) above).

 

36

 

Section 8.03.                                       Exercise
of Conversion Right.

 

(a)                                  In
order to exercise the conversion right:

 

(1)               the Holder of any Definitive Note to be
converted must:  (i) complete and
manually sign a notice of conversion substantially in the form of Exhibit C
hereto (the “Conversion Notice”); (ii) deliver
the Conversion Notice and the Definitive Note to the Conversion Agent and the
Company; and (iii) if required, furnish appropriate endorsements and
transfer documents; or

 

(2)               the holder of beneficial interests in
any Global Note to be converted must comply with the Applicable Procedures to
cause the beneficial interests in such Global Note to be delivered to the
Conversion Agent,

 

and in either
case, the Holder of a Definitive Note or holder of beneficial interests in a
Global Note will, if required, pay all transfer or similar taxes that the
Company is not otherwise required to pay pursuant to Section 4.06 hereof
and, if required pursuant to Section 8.03(b) hereof, pay funds equal
to the interest payable on the next Interest Payment Date.

 

The date on
which a Holder of a Definitive Note or holder of a beneficial interest in a
Global Note completes the requirements of this Section 8.03(a) shall
be deemed to be the date of conversion (the “Conversion
Date”) for purposes of this Article 8.
On and after the Conversion Date, the conversion by such Holder or holder, as
set forth in the Conversion Notice, shall become irrevocable.

 

The Company
shall deliver shares of Common Stock, if any, and cash deliverable upon
conversion to the Conversion Agent no later than the third Business Day
following the Conversion Reference Period.

 

(b)                                 Each
Definitive Note surrendered (in whole or in part), or beneficial interest in
any Global Note surrendered to the Conversion Agent, for conversion during the
Record Date Period shall be accompanied by payment by the Holder in same-day
funds or other funds acceptable to the Company of an amount equal to the
interest payable on such Interest Payment Date on the principal amount of such
Note (or part thereof, as the case may be) being surrendered for conversion; provided, however, that no such payment by
the Holder need be made in the case of any Note or portion thereof that is (x)
subject to repurchase following a Fundamental Change on a Fundamental Change
Repurchase Date or (y) subject to redemption on a Redemption Date, in each
case, occurring during the Record Date Period (or if such interest payment date
is not a Business Day, the second Business Day after the interest payment date)
and, as a result, the right to convert such Note would otherwise terminate in
such Record Date Period if not exercised. The interest payable by the Company
on such Interest Payment Date with respect to any Note (or portion thereof, if
applicable) that is surrendered for conversion during the Record Date Period
shall be paid to the Holder of such Note as of such Regular Record Date in an
amount equal to the interest that would have been payable on such Note if such
Note had been converted as of the close of business on such Interest Payment
Date.

 

37

 

Interest payable on any
Interest Payment Date in respect of any Note surrendered for conversion on or
after such Interest Payment Date shall be paid to the Holder of such Note as of
the Regular Record Date immediately prior to such Interest Payment Date, notwithstanding
the exercise of the right of conversion. Except as provided in this Section 8.03(b),
no cash payment or adjustment shall be made upon any conversion on account of
any interest accrued from the Interest Payment Date immediately prior to the Conversion
Date, in respect of any Note (or part thereof, as the case may be) surrendered
for conversion, or on account of any dividends on the Common Stock issued upon
conversion. The Company’s delivery to the Holder of the cash payment and the
number of shares of Common Stock, if any (and cash in lieu of fractions thereof
in accordance with Section 8.04 hereof), into which a Note is convertible
will be deemed to satisfy all of the Company’s obligations to pay the principal
of and interest, if any, on the Note. Accordingly, accrued but unpaid interest,
if any, will be deemed to be paid in full rather than canceled, extinguished or
forfeited.

 

(c)                                  Notes
shall be deemed to have been converted immediately prior to the close of
business on the Conversion Date, and at such time the rights of the Holders of
such Notes as Holders shall cease, and the Person or Persons entitled to
receive the cash payment and shares of Common Stock, if any, payable and
issuable upon conversion shall be treated for all purposes as the payee or
payees of such payment and the record holder or holders of such Common Stock,
if applicable, at such time. Following any Conversion Date, the Company shall
satisfy its obligations with respect to such conversion by either:

 

(1)               delivering to the Trustee, for delivery
to the Holder (or such other Person as may be named in the relevant Conversion
Notice), the cash payment, together with certificates representing the number
of shares of Common Stock, if any, payable and issuable upon such conversion;
or

 

(2)               delivering to such Holder (or such other
Person as may be named in the relevant Conversion Notice) the cash payment,
together with such number of shares of Common Stock, if any, payable and
issuable upon such conversion in accordance with the Applicable Procedures,

 

in each case,
together with payment in lieu of any fractional shares, if any, as provided in Section 8.04
(such cash payment and delivery of shares, if any, the “Settlement”); provided that shares of Common Stock only will be
deliverable in certificated form if (i) the Holder or holder that is
exercising such conversion has specifically requested in writing that delivery
be in certificates or (ii) the Company determines that delivery is
required in certificated shares either because (A) delivery to the Holder (or
such other Person named in the relevant Conversion Notice) is not practicable
in accordance with the Applicable Procedures or (B) in the opinion of
legal counsel, delivery is required in certificated form in order to comply
with the requirements of applicable securities laws. Settlement shall occur
promptly (but in no event more than three Business Days) following the
termination of the Applicable Conversion Reference Period.

 

38

 

(d)                                 In
the case of any Note which is converted in part only, upon such conversion the
Company shall execute and the Trustee shall authenticate and deliver to the
Holder thereof, at the expense of the Company, a new Note or Notes of
authorized denominations in an aggregate principal amount equal to the
unconverted portion of the principal amount of such Note. A Note may be
converted in part, but only if the principal amount of such Note to be converted
is any integral multiple of $1,000 and the principal amount of such security to
remain outstanding after such conversion is equal to $2,000 or any integral
multiple of $1,000 in excess thereof.

 

Section 8.04.                                       Fractions
of Shares.

 

No fractional
shares of Common Stock shall be issued upon conversion of any Note or Notes. If
more than one Note shall be surrendered for conversion at one time by the same
Holder, the number of full shares which shall be issuable upon conversion
thereof shall be computed on the basis of the aggregate principal amount of the
Notes (or specified portions thereof) so surrendered. The number of fractional
shares to be paid, if any, will be valued by the Closing Sale Price of the
Common Stock on the first Trading Day of the Applicable Conversion Reference
Period’. Instead of any fractional share of Common Stock that would otherwise
be issuable upon conversion of any Note or Notes (or specified portions
thereof), the Company shall calculate and pay a cash adjustment for the
fractional amount (calculated to the nearest 1/10,000th of a share) based upon
the applicable Stock Price.

 

Section 8.05.                                       Adjustment
of Conversion Rate.

 

(a)                                  The
Conversion Rate shall be subject to adjustment, without duplication, from time
to time upon the occurrence of any of the following:

 

(1)               Stock Dividends in Common Stock. In
case the Company shall pay or make a dividend or other distribution on shares
of Common Stock payable exclusively in shares of Common Stock, the Conversion
Rate in effect at the opening of business on the day following the date fixed
for the determination of stockholders entitled to receive such dividend or
other distribution shall be increased by dividing such Conversion Rate by an
adjustment factor equal to a fraction of which the numerator shall be the
number of shares of Common Stock outstanding at the close of business on the
date fixed for such determination and the denominator shall be the sum of such
number of shares and the total number of shares constituting such dividend or
other distribution, such increase to become effective immediately after the
opening of business on the day following the date fixed for such determination.
If, after any such date fixed for determination, any dividend or distribution
is not in fact paid, the Conversion Rate shall be immediately readjusted,
effective as of the date the Company’s Board of Directors determines not to pay
such dividend or distribution, to the Conversion Rate that would have been in
effect if such determination date had not been fixed. For the purposes of this
clause (1), the number of shares of Common Stock at any time outstanding shall
not include shares held in the treasury of the Company. The Company

 

39

 

will not pay any dividend or make any distribution on shares of Common
Stock held in the treasury of the Company.

 

(2)               Issuance of Rights or Warrants. In
case the Company shall issue rights or warrants to all or substantially all
holders of its Common Stock entitling them for a period expiring within 60 days
from the date of issuance of the rights or warrants to subscribe for or
purchase shares of Common Stock at a price per share less than the Current
Market Price per share of Common Stock on the date fixed for the determination
of stockholders entitled to receive such rights or warrants (other than any
rights, options or warrants that (x) by their terms will also be issued to
any Holder upon conversion of a Note into shares of Common Stock without any
action required by the Company or any other Person or (y) are distributed to
shareholders of the Company upon a merger or consolidation in compliance with Section 8.09
hereof and taking into consideration any consideration received by the Company
for such rights or warrants and any amount payable on exercise or conversion
thereof, with the value of such consideration, if other than cash, to be
determined by the Company), then the Conversion
Rate in effect at the opening of business on the day following the date fixed
for such determination shall be increased by dividing such Conversion Rate by
an adjustment factor equal to a fraction:

 

(A)                              the numerator of which
shall be the number of shares of Common Stock outstanding at the close of
business on the date fixed for such determination plus the number of shares of
Common Stock that the aggregate of the offering price of the total number of
shares of Common Stock so offered for subscription or purchase would purchase
at such Current Market Price; and

 

(B)                                the denominator of
which shall be the number of shares of Common Stock outstanding at the close of
business on the date fixed for such determination plus the number of shares of
Common Stock so offered for subscription or purchase,

 

such increase to become effective immediately
after the opening of business on the day following the date fixed for such determination.
If, after any such date fixed for determination, any such rights, options or
warrants are not in fact issued, or are not exercised prior to the expiration
thereof, the Conversion Rate shall be immediately readjusted, effective as of
the date such rights, options or warrants expire, or the date the Company’s
Board of Directors determines not to issue such rights, options or warrants, to
the Conversion Rate that would have been in effect if the unexercised rights,
options or warrants had never been granted or such determination date had not
been fixed, as the case may be, and as a result no additional shares are
delivered or issued pursuant to such rights or warrants. For the purposes of
this clause (2), the number of shares of Common Stock at any time outstanding
shall not include shares held in the treasury of the Company. The Company will
not issue any rights, options or warrants in respect of shares of Common Stock
held in the treasury of the Company.

 

40

 

(3)               Stock Splits and Combinations. (i) In
case outstanding shares of Common Stock shall be subdivided or split into a
greater number of shares of Common Stock, then the Conversion Rate in effect at
the opening of business on the day following the day upon which such subdivision
or split becomes effective shall be proportionately increased; (ii) in
case outstanding shares of Common Stock shall be combined or reclassified into
a smaller number of shares of Common Stock, then the Conversion Rate in effect
at the opening of business on the day following the day upon which such
combination or reclassification becomes effective shall be proportionately
reduced; and (iii) in case the Company issues any shares of its Capital
Stock in a reclassification of the outstanding shares of Common Stock, then the
Conversion Rate in effect at the opening of business on the day following the
day upon which such reclassification becomes effective shall be proportionately
applied to the new class of shares of Capital Stock of the Company into which
the Common Stock was reclassified; in each case, such increase, reduction or
reclassification, as the case may be, to become effective immediately after the
opening of business on the Business Day following the day upon which such
subdivision, combination or reclassification becomes effective.

 

(4)               Distribution of Indebtedness,
Securities or Assets. In case the Company shall, by dividend or otherwise,
distribute to all or substantially all holders of its Common Stock evidences of
its indebtedness, securities, assets or rights, options or warrants to purchase
the Company’s securities (provided that
if these rights are only exercisable upon the occurrence of specified
triggering events, then the conversion rate will not be adjusted until the
triggering events occur), but excluding (i) any dividends or distributions
referred to in clause (1) of this Section 8.05(a), (ii) any
rights or warrants referred to in clause (2) of this Section 8.05(a),
(iii) any dividends or distributions paid exclusively in cash described in
clause (6), (7) or (8) of this Section 8.05(a) (the “Distributed Assets”), then (other than in the case as described in
clause (5) of this Section 8.05(a)) the Conversion Rate shall
be adjusted so that the same shall equal the rate determined by multiplying the
Conversion Rate in effect immediately prior to the close of business on the
record date fixed for the determination of stockholders entitled to receive
such distribution by adjustment factor equal to a fraction:

 

(A)                              the numerator of which
shall be the Current Market Price per share of Common Stock; and

 

(B)                                the denominator of
which shall be the Current Market Price per share of Common Stock on the date
fixed for such determination minus the Fair Market Value, as determined by the
Company’s Board of Directors, whose determination in good faith shall be
conclusive and described in a Board Resolution filed with the Trustee, of the
portion of those Distributed Assets applicable to one share of Common Stock,
such adjustment to become effective immediately after the record date fixed for
the determination of stockholders entitled to receive such distribution.

 

41

 

If after any such date fixed for
determination, any such distribution is not in fact made, the Conversion Rate
shall be immediately readjusted, effective as of the date the Company’s Board
of Directors determines not to make such distribution, to the Conversion Rate
that would have been in effect if such determination date had not been fixed.

 

Notwithstanding
the foregoing, in cases where (i) the Fair Market Value per share of the
Distributed Assets equals or exceeds the Current Market Price of the Common
Stock, or (ii) the Current Market Price of the Common Stock exceeds the
Fair Market Value per share of the Distributed Assets by less than $1.00, in
lieu of the adjustment set forth in this Section 8.05(a)(4), Holders will
receive upon conversion, in addition to shares of Common Stock, if any, the
amount and type of Distributed Assets such Holders
would have received upon conversion of such Holders’ Notes if they had been
converted immediately prior to the record date for such distribution.

 

(5)               Spin-Offs. In case the Company
shall distribute to all or substantially all holders of its Common Stock shares
of Capital Stock of any class or series, or similar Equity Interests, of or
relating to a Subsidiary or other business unit (a “Spin-off”), then the Conversion
Rate shall be adjusted so that the same shall equal the rate determined by
multiplying the Conversion Rate in effect immediately prior to the close of
business on the record date fixed for the determination of stockholders
entitled to receive such distribution by an adjustment factor equal to the sum
of the Daily Adjustments for each of the 10 consecutive Trading Days beginning
on the effective date of the Spin-off, such adjustment to become effective on
the 10th Trading Day from, and including, the effective date of the Spin-off.

 

(6)               Cash Distributions. In case the
Company shall, by dividend or otherwise, distribute to all or substantially all
holders of outstanding shares of Common Stock distributions consisting
exclusively of cash, then the Conversion Rate shall be adjusted so that the
same shall equal the rate determined by multiplying the Conversion Rate in
effect immediately prior to the close of business on the date fixed for
determination of the stockholders entitled to receive such distribution by an adjustment
factor equal to a fraction:

 

(A)                              the numerator of which
shall be equal to the Current Market Price per share of Common Stock on the
date fixed for such determination; and

 

(B)                                the denominator of
which shall be equal to the Current Market Price per share of Common Stock on
such date fixed for determination minus the amount per share of such
distribution, such adjustment to become effective immediately after the record
date fixed for the determination of stockholders entitled to receive such
distribution.

 

Notwithstanding
the foregoing, in cases where (i) the per share amount of such
distribution equals or exceeds the Current Market Price of the Common Stock, or
(ii)

 

42

 

the Current Market Price of the Common Stock exceeds the per share
amount of such distribution by less than $1.00, in lieu of the adjustment set
forth in this Section 8.05(a)(6), Holders will receive upon conversion, in
addition to shares of Common Stock, if any, such distribution such Holders
would have received upon conversion of such Holders’ Notes if they had been
converted immediately prior to the record date for such distribution.

 

(7)               Tender or Exchange Offers. In
case the Company or any Subsidiary shall make a payment in respect of a tender
offer or exchange offer for any portion of the Common Stock, in which event, to
the extent the cash and value of any other consideration included in the
payment per share of Common Stock exceeds the Closing Sale Price of the Common
Stock on the Trading Day immediately following the last date on which tenders
or exchanges may be made pursuant to such tender offer or exchange offer (the “Expiration Date”), as the case
may be, then the Conversion Rate shall be adjusted
so that the same shall equal the rate determined by multiplying the Conversion
Rate immediately prior to close of business on the Expiration Date by adjustment
factor equal to a fraction:

 

(A)                              the numerator of which
shall be equal to the sum of (a) the Fair Market Value, as determined by
the Board of Directors of the Company, of the aggregate consideration payable
for all shares of Common Stock purchased by the Company in the tender or
exchange offer and (b) the product of (i) the number of shares of
Common Stock outstanding less any such purchased shares and (ii) the
Closing Sale Price of the Common Stock on the Trading Day immediately following
the Expiration Date; and

 

(B)                                the denominator of
which shall be equal to the product of (a) the number of shares of Common
Stock outstanding, including any such purchased shares, and (b) the
Closing Sale Price of the Common Stock on the Trading Day immediately following
the Expiration Date.

 

The adjustment pursuant to this clause (7) will
become effective immediately after the opening of business on the second
Trading Day immediately following the Expiration
Date.

 

(8)               Repurchases. In case the Company
or any of its Subsidiaries shall make a payment in respect of a repurchase of
Common Stock the consideration for which exceeds the average of the Closing
Sale Prices of the Common Stock for the five consecutive Trading Days ending on
the relevant repurchase date (such amount, the “Repurchase
Premium”), and that repurchase, together with any other repurchases of
Common Stock by the Company or any of its Subsidiaries involving a Repurchase
Premium concluded within the preceding 12 months, results in the payment by the
Company of an aggregate consideration exceeding an amount equal to 10% of the
Market Capitalization of the Common Stock, then the
Conversion Rate shall be adjusted so that the same shall equal the rate
determined by multiplying the Conversion

 

43

 

Rate immediately prior to the close of business on the date fixed for
determination of the stockholders entitled to receive such distribution by
adjustment factor equal to a fraction:

 

(A)                              the numerator of which
shall be equal to the Current Market Price of the Common Stock; and

 

(B)                                the denominator of
which shall be equal to (a) the Current Market Price of the Common Stock minus
(b) the quotient of (i) the aggregate amount of all the Repurchase
Premiums paid in connection with such repurchases and (ii) the number of
shares of Common Stock outstanding on the day immediately following the date of
the repurchase triggering the adjustment, as determined by the Board of
Directors of the Company;

 

provided that no
adjustment to the Conversion Rate shall be made to the extent the Conversion
Rate is not increased as a result of the above calculation; and provided, further, that the repurchases of Common Stock effected by the
Company or its agent in conformity with Rule 10b-18 under the Exchange Act
will not be included in any adjustment to the Conversion Rate made pursuant to
this Section 8.05(a)(8).

 

If a payment
by the Company shall cause an adjustment to the Conversion Rate under both clause
(7) and clause (8) of this Section 8.05(a), the provisions of Section 8.05(a)(8) shall
control.

 

(b)                                 No
Adjustment. For the avoidance of doubt, no adjustment in the Conversion
Rate shall be required:

 

(1)               upon the issuance of (A) any shares
of Common Stock or (B) options, warrants or other rights to acquire Common
Stock (including the issuance of Common Stock pursuant to such options,
warrants or other rights), in any transaction resulting in an exchange for Fair
Market Value, including in connection with a reduction of indebtedness or
liabilities of the Company or its Subsidiaries including, without limitation,
pursuant to settlements with respect to claims related to any governmental or
private litigation, dispute, investigation, proceeding or other similar action;

 

(2)               upon the issuance of any shares of
Common Stock pursuant to any present or future plan or similar arrangement
providing for the reinvestment of dividends or interest payable on the Company’s
securities and the investment of additional optional amounts in shares of
Common Stock under any such plan or arrangement;

 

(3)               upon the issuance of any shares of
Common Stock or options or rights to purchase such shares pursuant to any
present or future employee, director or consultant benefit plan or program or
similar arrangement of, or assumed by, the Company or any of its Subsidiaries;

 

44

 

(4)               upon the issuance of any shares of
Common Stock pursuant to any option, warrant, right or exercisable, exchangeable
or convertible security not described in clause (3) of this Section 8.05(b) and
outstanding as of the date the Notes were first issued;

 

(5)               for a change in the par value of the
Common Stock; or

 

(6)               for accrued and unpaid interest, if any.

 

In addition,
the Company will not be required to make an adjustment in the Conversion Rate
unless the adjustment would require a change of at least 1% in the Conversion
Rate. The Company shall carry forward any adjustment that is less than 1% of
the Conversion Rate, take such carried-forward adjustments into account in any
subsequent adjustments, and make such carried-forward adjustments, regardless
of whether the aggregate adjustment is less than 1%, (a) annually on the
anniversary of the first date of issue of the Notes and (b) otherwise (1) five
Business Days prior to the Maturity of the Notes or (2) prior to the
Redemption Date or Repurchase Date, unless such adjustment has already been
made.

 

No adjustment
will be made to the Conversion Rate or a Holder’s ability to convert the Notes
if such Holder otherwise participates in a distribution without conversion.

 

(c)                                  Increase
in Conversion Rate due to Taxes. The Company may make such increases in the
Conversion Rate, for the remaining term of the Notes or any shorter
term, in addition to those required by clause (a) of this Section 8.05,
as the Board of Directors of the Company considers to be advisable in order to
avoid or diminish any income tax to any holders of shares of Common Stock or
rights to purchase Common Stock resulting from any dividend or distribution of
stock or issuance of rights or warrants to purchase or subscribe for stock or
from any event treated as such for income tax purposes. The Company shall have
the power to resolve any ambiguity or correct any error in this clause (c) and
its actions in so doing shall, absent manifest error, be final and conclusive.

 

(d)                                 Temporary
Increase in Conversion Rate. To the extent permitted by applicable law, the
Company from time to time may increase the Conversion Rate by any amount for
any period of time if the period is at least twenty (20) Business Days, the
increase is irrevocable during such period, and the Company’s Board of
Directors shall have made a determination that such increase would be in the best
interests of the Company, which determination shall be conclusive; provided, however, that no such increase shall be taken into account for
purposes of determining whether the closing price of the Common Stock equals or
exceeds 105% of the Conversion Price in connection with an event which would
otherwise be a Fundamental Change. Whenever the Conversion Rate is increased
pursuant to the preceding sentence, the Company shall give notice of the
increase to the Holders in the manner provided in Section 11.01, with a
copy to the Trustee and Conversion Agent, at least fifteen (15) days prior to
the date the increased Conversion Rate takes effect, and such notice shall
state the increased Conversion Rate and the period during which it will be in effect.

 

45

 

(e)                                  Fundamental
Change Make-Whole Adjustment. In case of a Fundamental Change as specified
in clauses (2), (3) or (4) of the definition thereof, solely upon
receipt by the Conversion Agent of any Holder’s Conversion Notice on or subsequent
to the Effective Date of such Fundamental Change and prior to the 45th day
following such Effective Date (or, if earlier and to the extent applicable, the
close of business on the second Business Day immediately preceding the Fundamental
Change Repurchase Date (as specified in the Fundamental Change Repurchase Right
Notice)), the Company shall increase the Conversion Rate for the Notes surrendered
for conversion by such Holder by the number of Additional Shares determined in
accordance with this Section 8.05(e); provided, however, that no increase
shall be made in the case of a Fundamental Change if at least 90% of the
consideration paid for the Common Stock (excluding cash payments for fractional
shares and cash payments made pursuant to dissenters’ appraisal rights) in such
Fundamental Change transaction consists of shares of Capital Stock traded on
NYSE or another U.S. national securities exchange or quoted on NASDAQ or
another established automated over-the-counter trading market in the United
States (or that will be so traded or quoted immediately following the
transaction) and as a result of such transaction or transactions the Notes
become convertible solely into such common stock.

 

The following table sets forth the hypothetical increase in the
Conversion Rate, expressed as a number of Additional Shares issuable per $1,000
initial principal amount of Notes as a result of a Fundamental Change that
occurs in the corresponding period:

 

	
  Effective Date of

  	
   

  	
  Stock Price ($)

  	
   

  
	
  Fundamental Change

  	
   

  	
  4.54

  	
   

  	
  5.00

  	
   

  	
  6.00

  	
   

  	
  7.00

  	
   

  	
  8.00

  	
   

  	
  10.00

  	
   

  	
  12.50

  	
   

  	
  15.00

  	
   

  	
  20.00

  	
   

  	
  25.00

  	
   

  	
  30.00

  	
   

  	
  35.00

  	
   

  	
  40.00

  	
   

  
	
  08-Nov-2005

  	
   

  	
  50.8

  	
   

  	
  41.7

  	
   

  	
  28.8

  	
   

  	
  21.4

  	
   

  	
  16.8

  	
   

  	
  11.8

  	
   

  	
  8.6

  	
   

  	
  6.8

  	
   

  	
  4.6

  	
   

  	
  3.3

  	
   

  	
  2.4

  	
   

  	
  1.8

  	
   

  	
  1.4

  	
   

  
	
  15-Nov-2006

  	
   

  	
  49.2

  	
   

  	
  39.6

  	
   

  	
  26.2

  	
   

  	
  19.0

  	
   

  	
  14.8

  	
   

  	
  10.2

  	
   

  	
  7.5

  	
   

  	
  5.9

  	
   

  	
  4.0

  	
   

  	
  2.9

  	
   

  	
  2.2

  	
   

  	
  1.6

  	
   

  	
  1.2

  	
   

  
	
  15-Nov-2007

  	
   

  	
  47.4

  	
   

  	
  36.7

  	
   

  	
  22.0

  	
   

  	
  14.2

  	
   

  	
  9.8

  	
   

  	
  5.7

  	
   

  	
  4.0

  	
   

  	
  3.2

  	
   

  	
  2.2

  	
   

  	
  1.6

  	
   

  	
  1.2

  	
   

  	
  0.9

  	
   

  	
  0.7

  	
   

  
	
  15-Nov-2008

  	
   

  	
  46.3

  	
   

  	
  34.3

  	
   

  	
  18.9

  	
   

  	
  11.7

  	
   

  	
  6.6

  	
   

  	
  4.1

  	
   

  	
  3.1

  	
   

  	
  2.5

  	
   

  	
  1.7

  	
   

  	
  1.2

  	
   

  	
  0.9

  	
   

  	
  0.7

  	
   

  	
  0.6

  	
   

  
	
  15-Nov-2009

  	
   

  	
  46.1

  	
   

  	
  31.3

  	
   

  	
  13.7

  	
   

  	
  6.8

  	
   

  	
  4.3

  	
   

  	
  2.9

  	
   

  	
  2.2

  	
   

  	
  1.8

  	
   

  	
  1.2

  	
   

  	
  0.9

  	
   

  	
  0.7

  	
   

  	
  0.5

  	
   

  	
  0.4

  	
   

  
	
  15-Nov-2010

  	
   

  	
  50.8

  	
   

  	
  30.6

  	
   

  	
  0.0

  	
   

  	
  0.0

  	
   

  	
  0.0

  	
   

  	
  0.0

  	
   

  	
  0.0

  	
   

  	
  0.0

  	
   

  	
  0.0

  	
   

  	
  0.0

  	
   

  	
  0.0

  	
   

  	
  0.0

  	
   

  	
  0.0

  	
   

  

 

The Stock
Prices and Additional Share amounts set forth above are based upon a Closing Sale
Price of $4.54 on November 2, 2005 and an initial Conversion Price of
$5.90. The Stock Prices set forth in the first row of the table above shall be
adjusted as of any date on which the Conversion Rate of the Notes is adjusted
in accordance with Section 8.05 hereof. The adjusted Stock Prices shall
equal the Stock Prices applicable immediately prior to such adjustment,
multiplied by an adjustment factor equal to a fraction, the numerator of which
is the Conversion Rate immediately prior to the adjustment giving rise to the
Stock Price adjustment and the denominator of which is the Conversion Rate as
so adjusted. If holders of Common Stock receive only cash in such Fundamental
Change transaction, the Stock Price will be the cash amount per share of Common
Stock. The number of Additional Shares shall be adjusted in the same manner and
for the same events as the Conversion Rate as set forth in Section 8.05
hereof.

 

46

 

The exact
Stock Price and Conversion Dates may not be set forth on the table; in which
case, if the Stock Price is:

 

(A)                              between two Stock Price
amounts on the table or the Conversion Date is between two dates on the table,
the number of Additional Shares will be determined by straight-line interpolation
between the number of Additional Shares set forth for the higher and lower
stock price amounts and the two dates, as applicable, based on a 365-day year;

 

(B)                                more than $40.00 per
share (subject to adjustment), no further adjustment will be made to the
Conversion Rate as a result of the Fundamental Change; and

 

(C)                                less than $4.54 per
share (subject to adjustment), no further adjustment will be made to the
Conversion Rate as a result of the Fundamental Change.

 

Notwithstanding
the foregoing, in no event shall the total number of shares of Common Stock
issuable upon conversion of a Note exceed 220.2643 per $1,000 initial principal
amount of the Notes, after giving effect to the make-whole adjustment and any
related increase in the Conversion Rate pursuant to this Section 8.05(e),
subject to anti-dilution adjustments set forth in Section 8.05(a) hereof.

 

Section 8.06.                                       Notice
of Adjustments of Conversion Rate.

 

Whenever the
Conversion Rate is adjusted pursuant to Section 8.05 hereof:

 

(a)                                  the Company shall
compute the adjusted Conversion Rate in accordance with Section 8.05
hereof and shall prepare an Officer’s Certificate setting forth (1) the adjusted
Conversion Rate, (2) the clause of Section 8.05 pursuant to which
such adjustment has been made, showing in reasonable detail the facts upon
which such adjustment is based, (3) the calculation of such adjustment and
(4) the date as of which such adjustment is effective, and such
certificate shall promptly be filed with the Trustee and with each Conversion Agent
(which such certificates shall be conclusive absent manifest error); and

 

(b)                                 upon each such
adjustment, a notice stating that the Conversion Rate has been adjusted and
setting forth the adjusted Conversion Rate shall be required, and as soon as
practicable after it is required, such notice shall be provided by the Company
to all Holders in accordance with Section 11.01.

 

Moreover, upon
any determination by the Company, the Conversion Agent or the Trustee that
Holders of the Notes are or will be entitled to convert the Notes in accordance
with this Section 8.06, the Company will issue a press release and publish
the information on its website.

 

Neither the
Trustee nor any Conversion Agent shall be under any duty or responsibility with
respect to any such certificate or the information and calculations contained

 

47

 

therein,
except to exhibit the same to any Holder of Notes desiring inspection thereof
at its office during normal business hours.

 

Section 8.07.                                       Notice
of Certain Corporate Transactions.

 

In case the
Company shall:

 

(a)                                  distribute to all or
substantially all holders of Common Stock rights or warrants entitling them to
purchase, for a period expiring within 60 days of the declaration date for such
distribution, Common Stock at less than the average Closing Sale Price of the
Common Stock for the five Trading Days immediately preceding the date such distribution
was first publicly announced; or

 

(b)                                 distribute to all or
substantially all holders of Common Stock the Company’s assets, debt securities
or rights or warrants to purchase the Company’s securities, which distribution
has a per share value exceeding 10% of the Closing Sale Price of the Common
Stock on the day preceding the declaration date for such distribution,

 

in each case,
other than pursuant of Section 8.10 hereof, then the Company shall deliver
written notice to the Conversion Agent, and shall deliver or cause its Agents
to deliver, to all Holders in accordance with Section 11.01, at least 20
days prior to the record or ex-dividend date for such distribution, a notice of
such distribution. At such time notice is given pursuant to this Section 8.07,
Holders of Notes that are not otherwise convertible at that time may surrender
their Notes for conversion at any time until the earlier of (1) the close
of business on the Business Day prior to the ex-dividend date or (2) the
Company’s announcement that such distribution will not take place. Holders of
Notes may not exercise this right of conversion if they may participate in the
distribution without conversion.

 

At any time
that the Trustee is not also the Conversion Agent, the Company shall forthwith
deliver a copy of any notice required pursuant to this Section 8.06 to the
Trustee.

 

Section 8.08.                                       Cancellation
of Converted Notes.

 

All Definitive
Notes delivered for conversion shall be delivered to the Trustee or its agent
to be canceled by or at the direction of the Trustee, which shall dispose of
the same as provided in this Indenture. Upon conversions of beneficial
interests in any Global Note, the Trustee or the Custodian, at the direction of
the Trustee, shall reduce the aggregate principal amount of outstanding Notes
represented by such Global Note to reflect the conversion pursuant to Section 2.01(b).

 

Section 8.09.                                       Provision
in Case of Consolidation, Merger or Sale of Assets.

 

In the case of
any consolidation or merger of the Company with or into any other Person, any
merger of another Person with or into the Company (other than a merger

 

48

 

that does not
result in any reclassification, conversion, exchange or cancellation of
outstanding shares of Common Stock of the Company) or any conveyance, sale or
transfer of all or substantially all of the assets of the Company, the Person
formed by such consolidation or resulting from such merger or which acquires
such assets, as the case may be, shall execute and deliver to the Trustee a supplemental
indenture providing that the Holder of each Note then outstanding shall have
the right thereafter, during the period such Note shall be convertible as
specified in Section 8.01 to convert such Note only into the kind and
amount of securities, cash and other property receivable upon such
consolidation, merger, conveyance, sale or transfer by a holder of the number
of shares of Common Stock of the Company into which such Note might have been
converted immediately prior to such consolidation, merger, conveyance, sale or
transfer. For purposes of this Section 8.09, the kind and amount of
consideration that a Holder would have been entitled to receive as a Holder of
the Common Stock in the case of reclassifications, consolidations, mergers,
sales or transfers of assets or other transactions that cause the Common Stock
to be converted into the right to receive more than a single type of
consideration (determined based in part upon any form of stockholder election)
will be deemed to be the weighted average of the kind and amount of consideration
received by the Holders of the Common Stock that affirmatively make such an
election. The above provisions of this Section 8.09 shall similarly apply
to successive consolidations, mergers, conveyances, sales, transfers or leases.
Notice of the execution of such a supplemental indenture shall be given by the
Company to the Holder of each Note as provided in Section 11.01 promptly
upon such execution.

 

Neither the
Trustee nor any Conversion Agent shall be under any responsibility to determine
the correctness of any provisions contained in any such supplemental indenture
relating either to the kind or amount of shares of stock or other securities or
property or cash receivable by Holders of Notes upon the conversion of their
Notes after any such consolidation, merger, conveyance, transfer, sale or lease
or to any such adjustment, but may accept as conclusive evidence of the
correctness of any such provisions, and shall be protected in relying upon, an
Opinion of Counsel with respect thereto, which the Company shall cause to be
furnished to the Trustee upon request.

 

Section 8.10.                                       Rights
Issued in Respect of Common Stock.

 

Rights or
warrants distributed by the Company to all holders of Common Stock entitling
the holders thereof to subscribe for or purchase shares of the Company’s capital
stock (either initially or under certain circumstances), which rights or
warrants, until the occurrence of a specified event or events (“Trigger Event”):

 

(1)               are deemed to be transferred with such
shares of Common Stock;

 

(2)               are not exercisable; and

 

(3)               are also issued in respect of future
issuances of Common Stock,

 

49

 

shall not be
deemed distributed for purposes of Section 8.05(a) until the
occurrence of the earliest Trigger Event. In addition, in the event of any
distribution of rights or warrants, or any Trigger Event with respect thereto,
that shall have resulted in an adjustment to the Conversion Rate under Section 8.05(a),
(A) in the case of any such rights or warrants that shall all have been
redeemed or repurchased without exercise by any holders thereof, the Conversion
Rate shall be readjusted upon such final redemption or repurchase to give
effect to such distribution or Trigger Event, as the case may be, as though it
were a cash distribution, equal to the per share redemption or repurchase price
received by a holder of Common Stock with respect to such rights or warrants
(assuming such holder had retained such rights or warrants), made to all
holders of Common Stock as of the date of such redemption or repurchase, and (B) in
the case of any such rights or warrants all of which shall have expired without
exercise by any holder thereof, the Conversion Price shall be readjusted as if
such issuance had not occurred.

 

Section 8.11.                                       Responsibility
of Trustee and Conversion Agent for Conversion Provisions.

 

(a)                                  The
Conversion Agent will, upon the written request of the Company, determine if
the Notes are convertible as a result of satisfaction of the Sale Price
Condition and notify the Company and the Trustee. The Conversion Agent will, on
behalf of the Company, determine if the Notes are convertible as a result of
satisfaction of the Trading Price Condition and notify the Company and the
Trustee, which determination shall be confirmed by the Company to the
Conversion Agent; provided, however, that the Conversion Agent will have no obligation to
determine the Trading Price of the Notes unless the Company shall have
requested such determination in writing and the Company shall have no
obligation to make such request unless requested to do so by a Holder of the
Notes who provides the Company with a written notice which includes reasonable
evidence that the Trading Price Condition has been satisfied and which shall
include a bid quotation from a nationally recognized securities dealer as
specified in the definition of Trading Price. At such time, the Company will
instruct the Conversion Agent to determine the Trading Price of the Notes
beginning on the next Trading Day and on each successive Trading Day until the
Trading Price of the Notes is greater than or equal to 95% of the product of
the Closing Sale Price of the Common Stock multiplied by the Applicable
Conversion Rate.

 

(b)                                 The
Trustee, subject to the provisions of Section 7.01, and any Conversion
Agent, subject to clause (a) above, shall not at any time be under any
duty or responsibility to any Holder of Notes to determine whether any facts
exist which may require any adjustment of the Conversion Rate, or with respect
to the nature or extent of any such adjustment when made, or with respect to
the method employed, herein or in any supplemental indenture provided to be
employed, in making the same, or whether a supplemental indenture need be
entered into. Neither the Trustee, subject to the provisions of Section 7.01,
nor any Conversion Agent shall be accountable with respect to the validity or
value (or the kind or amount) of any Common Stock, or of any other securities
or property or cash, which may at any time be issued or delivered upon the
conversion of any Note; and it or they do not make any representation with
respect thereto. Neither the Trustee, subject to the provisions of Section 7.01,
nor any Conversion Agent shall be responsible for any failure of the Company to

 

50

 

make or calculate any cash
payment or to issue, transfer or deliver any shares of Common Stock or share
certificates or other securities or property or cash upon the surrender of any
Note for the purpose of conversion; and the Trustee, subject to the provisions
of Section 7.01, and any Conversion Agent shall not be responsible for any
failure of the Company to comply with any of the covenants of the Company
contained in this Article 8.

 

ARTICLE NINE

AMENDMENT, SUPPLEMENT AND WAIVER

 

Section 9.01.                                       Without
Consent of Holders of Notes.

 

Notwithstanding
Section 9.02 of this Indenture, the Company and the Trustee may amend or
supplement this Indenture or the Notes without the consent of any Holder of
Notes:

 

(1)               to cure any ambiguity, defect or
inconsistency or make any other change that does not adversely affect the
interests of the Holders;

 

(2)               to provide for uncertificated Notes in
addition to or in place of certificated Notes;

 

(3)               to provide for the assumption of the
Company’s obligations to the Holders of the Notes by a successor to the Company
pursuant to Article 5 or Article 11 hereof;

 

(4)               to make any change that would provide
any additional rights or benefits to the Holders of the Notes or that does not
adversely affect the legal rights hereunder of any Holder;

 

(5)               to comply with requirements of the SEC
in order to effect or maintain the qualification of this Indenture under the
TIA; or

 

(6)               to provide for the issuance of
Additional Notes in accordance with the limitations set forth in this Indenture
as of the date hereof.

 

Upon the
request of the Company accompanied by a resolution of its Board of Directors
authorizing the execution of any such amended or supplemental indenture, and
upon receipt by the Trustee of the documents
described in Section 7.03 of the Base Indenture hereof, the Trustee will
join with the Company in the execution of any amended or supplemental indenture
authorized or permitted by the terms of this Indenture and to make any further
appropriate agreements and stipulations that may be therein contained, but the
Trustee will not be obligated to enter into such amended or supplemental
indenture that affects its own rights, duties or immunities under this
Indenture or otherwise.

 

51

 

 

The consent of
the Holders of the Notes will not be necessary to approve the particular form
of any proposed amendment. It will be sufficient if such consent approves the
substance of the proposed amendment.

 

Section 9.02.                                       With
Consent of Holders of Notes.

 

Except as
provided below in this Section 9.02, the Company and the Trustee may amend
or supplement this Indenture (including, without limitation, Sections 4.07 and
4.08 hereof) and the Notes with the consent of the Holders of at least a
majority in aggregate principal amount of the Notes (including, without
limitation, Additional Notes, if any) then Outstanding voting as a single class
(including, without limitation, consents obtained in connection with a tender
offer or exchange offer for, or purchase of, the Notes), and, subject to
Sections 6.04 and 6.07 hereof, any existing Default (other than a Default in
the payment of the principal of, or interest on the Notes, except a payment
default resulting from an acceleration that has been rescinded) or compliance
with any provision of this Indenture or the Notes may be waived with the
consent of the Holders of a majority in aggregate principal amount of the then
Outstanding Notes (including, without limitation, Additional Notes, if any)
voting as a single class (including, without limitation, consents obtained in
connection with a tender offer or exchange offer for, or purchase of, the
Notes).

 

Upon the
request of the Company accompanied by a resolution of its Board of Directors
authorizing the execution of any such amended or supplemental indenture, and
upon the filing with the Trustee of evidence satisfactory to the Trustee of the
consent of the Holders of Notes as aforesaid, and upon receipt by the Trustee
of the documents described in Section 7.03 of the Base Indenture, the
Trustee will join with the Company in the execution of such amended or
supplemental indenture unless such amended or supplemental indenture directly
affects the Trustee’s own rights, duties or immunities under this Indenture or
otherwise, in which case the Trustee may in its discretion, but will not be
obligated to, enter into such amended or supplemental indenture.

 

It is not be
necessary for the consent of the Holders of Notes under this Section 9.02
to approve the particular form of any proposed amendment, supplement or waiver,
but it is sufficient if such consent approves the substance thereof.

 

After an
amendment, supplement or waiver under this Section 9.02 becomes effective,
the Company will mail to the Holders of Notes affected thereby a notice briefly
describing the amendment, supplement or waiver. Any failure of the Company to
mail such notice, or any defect therein, will not, however, in any way impair
or affect the validity of any such amended or supplemental indenture or waiver.
Subject to Sections 6.04 and 6.07 hereof, the Holders of a majority in
aggregate principal amount of the Notes then outstanding voting as a single
class may waive compliance in a particular instance by the Company with any
provision of this Indenture or the Notes. However, without the consent of each
Holder affected, an amendment, supplement or waiver under this Section 9.02
may not (with respect to any Notes held by a non-consenting Holder):

 

52

 

(1)               change the stated Maturity of the
principal of, or interest on, any Note;

 

(2)               reduce the principal amount of, or
interest on, any Note;

 

(3)               reduce the amount of principal payable
upon acceleration of the Maturity of any Note;

 

(4)               change the place or currency of payment
of principal of, or interest on, any Note;

 

(5)               impair the right to institute suit for
the enforcement of any payment on, or with respect to, any Note;

 

(6)               modify the provisions of Section 4.07
hereof relating to the Company’s requirement to repurchase Notes upon a
Fundamental Change or of Section 4.08 hereof relating to the Company’s
requirement to repurchase Notes on each of November 15, 2010, 2015, and
2020.

 

(7)               adversely affect the right of Holders to
convert Notes other than as provided in this Indenture;

 

(8)               reduce the percentage in principal
amount of outstanding Notes required for modification or amendment of this
Indenture;

 

(9)               reduce the percentage in principal
amount of outstanding Notes necessary for waiver of compliance with certain
provisions of this Indenture or for waiver of certain Defaults;

 

(10)         reduce the percentage required for the
adoption of a resolution or for a quorum required at any meeting of Holders of
Notes at which a resolution is adopted; or

 

(11)         modify Section 6.04 or Section 6.07
or any of the foregoing amendment and waiver provisions in this Section 9.02,
except to increase the percentage required for modification or waiver or to
provide for consent of each affected Holder of Notes.

 

Section 9.03.                                       Compliance
with Trust Indenture Act.

 

Every
amendment or supplement to this Indenture or the Notes will be set forth in an
amended or supplemental indenture that complies with the TIA as then in effect.

 

53

 

Section 9.04.                                       Revocation
and Effect of Consents.

 

Until an
amendment, supplement or waiver becomes effective, a consent to it by a Holder
of a Note is a continuing consent by the Holder of a Note and every subsequent
Holder of a Note or portion of a Note that evidences the same debt as the
consenting Holder’s Note, even if notation of the consent is not made on any
Note. However, any such Holder of a Note or subsequent Holder of a Note may
revoke the consent as to its Note if the Trustee receives written notice of revocation
before the date the amendment, supplement or waiver becomes effective. An
amendment, supplement or waiver becomes effective in accordance with its terms
and thereafter binds every Holder.

 

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 which record date shall be at least 30 days prior to the first
solicitation of such consent. If a record date is fixed, those Persons who were
Holders at 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. The
Company shall inform the Trustee in writing of the fixed record date, if
applicable.

 

Section 9.05.                                       Notation
on or Exchange of Notes.

 

The Trustee
may place an appropriate notation about an amendment, supplement or waiver on
any Note thereafter authenticated. The Company in exchange for all Notes may
issue and the Trustee shall, upon receipt of an Authentication Order,
authenticate new Notes that reflect the amendment, supplement or waiver.

 

Failure to make
the appropriate notation or issue a new Note will not affect the validity and
effect of such amendment, supplement or waiver.

 

Section 9.06.                                       Trustee
To Sign Amendments, etc.

 

The Trustee
will sign any amended or supplemental indenture authorized pursuant to this Article 9
if the amendment or supplement does not adversely affect the rights, duties,
liabilities or immunities of the Trustee. The Company may not sign an amended
or supplemental indenture until the Board of Directors of the Company approves it.
In executing any amended or supplemental indenture, the Trustee will be
entitled to receive and (subject to Section 7.01 hereof) will be fully
protected in relying upon, in addition to the documents required by Section 10.03
hereof, an Officer’s Certificate and an Opinion of Counsel stating that the
execution of such amended or supplemental indenture is authorized or permitted
by this Indenture.

 

54

 

ARTICLE TEN

SATISFACTION AND DISCHARGE

 

Section 10.01.                                 Satisfaction
and Discharge.

 

This Indenture
will be discharged and will cease to be of further effect as to all Notes
issued hereunder, when:

 

(1)               either:

 

(a)                                  all Notes that have
been authenticated, except lost, stolen or destroyed Notes that have been replaced
or paid and Notes for whose payment money has theretofore been deposited in
trust and thereafter repaid to the Company, have been delivered to the Trustee
for cancellation; or

 

(b)                                 all Notes that have
not been delivered to the Trustee for cancellation have or will become due and
payable within one year and the Company has irrevocably deposited or caused to
be deposited with the Trustee as trust funds in trust solely for the benefit of
the Holders, cash in U.S. dollars, non-callable Government Securities, or a
combination thereof, in such amounts as will be sufficient without
consideration of any reinvestment of interest, to pay and discharge the entire
indebtedness on the Notes not delivered to the Trustee for cancellation for
principal and accrued interest to the date of Maturity;

 

(2)               no Default has occurred and is
continuing on the date of the deposit described in clause (1)(b) above
(other than a Default resulting from the borrowing of funds to be applied to
such deposit) and such deposit will not result in a breach or violation of, or
constitute a default under, any other instrument to which the Company is a
party or by which the Company is bound;

 

(3)               the Company has paid or caused to be
paid all sums payable by it under this Indenture; and

 

(4)               the Company has delivered irrevocable
instructions to the Trustee under this Indenture to apply the deposited money
toward the payment of the Notes at maturity.

 

In addition,
the Company must deliver an Officer’s Certificate and an Opinion of Counsel to
the Trustee stating that all conditions precedent to satisfaction and discharge
have been satisfied.

 

Notwithstanding
the satisfaction and discharge of this Indenture, if money has been deposited
with the Trustee pursuant to clause (1)(b) of this Section 10.01, the
provisions of Section 10.02 and Section 10.04 will survive. In
addition, nothing in this Section 10.01

 

55

 

will be deemed
to discharge those provisions of Section 7.07 of the Base Indenture, that,
by their terms, survive the satisfaction and discharge of this Indenture.

 

Section 10.02.                                 Application
of Trust Money; Other Miscellaneous Provisions.

 

Subject to the
provisions of Section 10.04 hereof, all money and Government Securities
deposited with the Trustee pursuant to Section 10.01 hereof shall be held
in trust and applied by it, in accordance with the provisions of the Notes and
this Indenture, to the payment, either directly or through any Paying Agent
(including the Company acting as its own Paying Agent) as the Trustee may
determine, to the Persons entitled thereto, of the principal and interest for
whose payment such money has been deposited with the Trustee; but such money
need not be segregated from other funds except to the extent required by law.

 

If the Trustee
or Paying Agent is unable to apply any money or Government Securities in
accordance with Section 10.01 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 and the Notes shall be revived and reinstated
as though no deposit had occurred pursuant to Section 10.01 hereof; provided that if the Company has made any payment of
principal of or interest on any Notes because of the reinstatement of its
obligations, the Company shall be subrogated to the rights of the Holders of
such Notes to receive such payment from the money or Government Securities held
by the Trustee or Paying Agent.

 

The Company
shall pay and indemnify the Trustee against any tax, fee or other charge
imposed on or assessed against the cash or non-callable Government Securities
deposited pursuant to Section 10.01 hereof or the principal and interest
received in respect thereof other than any such tax, fee or other charge which
by law is for the account of the Holders of the outstanding Notes.

 

Notwithstanding
anything in this Article 10 to the contrary, the Trustee shall deliver or
pay to the Company from time to time upon the request of the Company any money
or non-callable Government Securities held by it as provided in Section 10.01
hereof which, in the opinion of a nationally recognized investment bank,
appraisal firm or firm of independent public accountants expressed in a written
certification thereof delivered to the Trustee, are in excess of the amount
thereof that would then be required to be deposited to effect an equivalent
defeasance.

 

Section 10.03.                                 Repayment
to the Company.

 

Any money
deposited with the Trustee or any Paying Agent, or then held by the Company, in
trust for the payment of the principal of or interest on any Note and remaining
unclaimed for two years after such principal or interest has become due and
payable shall be paid to the Company on its request or (if then held by the
Company) shall be discharged from such trust; and the Holder of such Note shall
thereafter be permitted to look only to the Company for payment thereof, and
all liability of the Trustee or such Paying Agent with respect

 

56

 

to such trust
money, and all liability of the Company as trustee thereof, shall thereupon
cease; provided, however, that the Trustee or such Paying Agent, before being
required to make any such repayment, may at the expense of the Company cause to
be published once, in The  New York Times and The  Wall Street Journal (national edition), notice that such
money remains unclaimed and that, after a date specified therein, which will
not be less than 30 days from the date of such notification or publication, any
unclaimed balance of such money then remaining will be repaid to the Company.

 

Section 10.04.                                 Reinstatement.

 

If the Trustee
or Paying Agent is unable to apply any U.S. dollars or non-callable Government
Securities in accordance with Section 10.01 hereof, as the case may be, by
reason of any order or judgment of any court or governmental authority
enjoining, restraining or otherwise prohibiting such application, then the
Company’s obligations under this Indenture and the Notes will be revived and
reinstated as though no deposit had occurred pursuant to Section 10.01
hereof until such time as the Trustee or Paying Agent is permitted to apply all
such money in accordance with Section 10.01 hereof, as the case may be; provided, however, that, if the Company makes any payment of principal of, if
any, or interest on any Note following the reinstatement of its obligations,
the Company will be subrogated to the rights of the Holders of such Notes to
receive such payment from the money held by the Trustee or Paying Agent.

 

ARTICLE ELEVEN

MISCELLANEOUS

 

Section 11.01.                                 Notices.

 

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

 

	
  If to the Company:

  
	
   

  
	
  Qwest Communications
  International Inc.

  
	
  1801 California Street

  
	
  Denver, Colorado 80202

  
	
  Attn.: General Counsel

  

 

57

 

	
  With a copy to:

  
	
   

  
	
  Linklaters

  
	
  1345 Avenue of the
  Americas

  
	
  19th Floor

  
	
  New York, New York 10105

  
	
  Facsimile No.: (212) 903-9100

  
	
  Attn: Jeff Norton, Esq.

  
	
   

  
	
  If to the Trustee:

  
	
   

  
	
  U.S. Bank National
  Association

  
	
  Corporate Trust Services

  
	
  950 17th Street, Suite 300

  
	
  Denver, CO 80202

  

 

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

 

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

 

Any notice or
communication to a Holder will be mailed by first class mail, postage prepaid,
or by overnight air courier guaranteeing next day delivery to its address shown
on the register kept by the Registrar. Any notice or communication will also be
so mailed to any Person described in TIA § 313(c), to the extent required
by the TIA. Failure to mail a notice or communication to a Holder or any defect
in it will not affect its sufficiency with respect to other Holders.

 

If a notice or
communication is mailed in the manner provided above within the time prescribed,
it is duly given, whether or not the addressee receives it.

 

If the Company
mails a notice or communication to Holders, it will mail a copy to the Trustee
and each Agent at the same time.

 

Section 11.02.                                 Indenture.

 

In the event
of any conflict between this Supplemental Indenture and the Base Indenture, the
provisions of this Supplemental Indenture shall prevail.

 

58

 

Section 11.03.                                 Governing
Law.

 

The laws of
the State of New York shall govern this Supplemental Indenture and the
Securities of the Series created hereby.

 

Section 11.04.                                 No
Adverse Interpretation of Other Agreements.

 

This
Supplemental Indenture may not be used to interpret another indenture, loan or
debt agreement of the Company or a Subsidiary. Any such indenture, loan or debt
agreement may not be used to interpret this Supplemental Indenture.

 

Section 11.05.                                 Successors
and Assigns.

 

All covenants
and agreements of the Company in this Supplemental Indenture and the Notes
shall bind its successors and assigns. All agreements of the Trustee in this
Supplemental Indenture shall bind its successors and assigns.

 

Section 11.06.                                 Duplicate
Originals.

 

This
Supplemental Indenture may be executed in counterparts, each of which shall be
an original, but such counterparts shall together constitute but one
instrument.

 

Section 11.07.                                 Severability.

 

In case any
one or more of the provisions contained in this Supplemental Indenture or in
the Notes shall for any reason be held to be invalid, illegal or unenforceable
in any respect, such invalidity, illegality or unenforceability shall not
affect any other provisions of this Supplemental Indenture or of the Notes.

 

[Signature Pages Follow]

 

59

 

SIGNATURES

 

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

 

	
   

  	
  QWEST
  COMMUNICATIONS

  INTERNATIONAL INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  U.S. BANK
  NATIONAL ASSOCIATION, as

  Trustee

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  

 

 

Exhibit A

 

[Face of Note]

 

CUSIP/ISIN             

 

3.50% Convertible Senior Notes due November 15, 2025

 

	
  No.                        

  	
   

  	
  $                      

  

 

QWEST COMMUNICATIONS INTERNATIONAL INC.

 

promises to pay to                                                                                                                                                                                          

 

or registered assigns,

 

the principal sum of                                                                                                                                                                                       

 

Dollars on November 15, 2025.

 

Interest Payment Dates:  May 15
and November 15

 

Record Dates:  May 1 and November 1

 

	
  Dated:

  	
   

  	
  , 2005

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  QWEST
  COMMUNICATIONS

  INTERNATIONAL INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
   

  	
  Title:

  
	
   

  	
   

  	
   

  
	
  This is one of the
  Notes referred to in the

  within-mentioned Indenture:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  U.S. BANK NATIONAL
  ASSOCIATION,

  as Trustee

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  By:

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Authorized Signatory

  	
   

  	
   

  	
   

  
									

 

 

[Back of Note]

3.50% Convertible Senior Notes due November 15, 2025

 

[Insert the
Global Note Legend, if applicable pursuant to
the provisions of the Indenture]

 

Capitalized
terms used herein have the meanings assigned to them in the First Supplemental
Indenture referred to below unless otherwise indicated.

 

(1)                                  INTEREST. Qwest Communication International Inc., a Delaware
corporation (the “Company”), promises to pay interest on the principal amount of this
Note at 3.50% per annum from November 8, 2005 until Maturity. The Company
will pay interest, if any, semi-annually in
arrears on May 15 and November 15 of each year (subject to limited
exceptions if the Note is converted or purchased prior to such date), or if any
such day is not a Business Day, on the immediately following Business Day
(each, an “Interest Payment Date”). Interest on the Notes will accrue from the most recent
date to which interest has been paid or, if no interest has been paid, from November 8,
2005; provided that if there is no existing
Default in the payment of interest, and if this Note is authenticated between a
Record Date referred to on the face hereof and the next succeeding Interest
Payment Date, interest shall accrue from such next succeeding Interest Payment
Date; provided, further, that the first Interest Payment Date shall be May 15,
2006. The Company will pay interest on overdue principal from time to time on
demand at the rate then in effect to the extent lawful; it will pay interest on
overdue installments of interest, if any (without regard to any applicable
grace periods), from time to time on demand at the same rate to the extent
lawful. Interest will be computed on the basis of a 360-day year of twelve 30-day
months.

 

(2)                                  METHOD OF PAYMENT. The Company will pay interest on the
Notes, if any, to the Persons who are registered Holders of Notes at the close
of business on the May 1 or November 1 next preceding the Interest
Payment Date, even if such Notes are canceled after such record date and on or
before such Interest Payment Date. The Notes will be payable as to principal,
if any, and interest at the office or agency of the Company maintained for such
purpose within or without the City and State of New York, or, at the option of
the Company, payment of interest, if any, may be made by check mailed to the
Holders at their addresses set forth in the register of Holders; provided that payment by wire transfer of immediately
available funds will be required with respect to principal of and interest, if
any, on, all Global Notes and all other Notes with an aggregate principal
amount in excess of $2 million for which the Holders have provided wire
transfer instructions at least 10 Business Days prior to the Interest Payment
Date to the Company or the Paying Agent. Such payment will be 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.

 

(3)                                  PAYING AGENT, REGISTRAR AND CONVERSION
AGENT. Initially, U.S. Bank National Association, the Trustee under
the First Supplemental Indenture, will act as Paying Agent, Registrar and
Conversion Agent. The Company may change any Paying

 

2

 

Agent,
Registrar or Conversion Agent without notice to any Holder. The Company or any
of its Subsidiaries may act in any such capacity.

 

(4)                                  INDENTURE. The Company issued the Notes under the Base
Indenture dated as of November 8, 2005, as supplemented by the First
Supplemental Indenture dated as of November 8, 2005 (the “Base Indenture,” as supplemented, the “Indenture”) between the Company and the Trustee. The terms of the Notes
include those stated in the Base Indenture and those made part of the Indenture
by reference to the TIA. The Notes are subject to all such terms, and Holders
are referred to the Indenture and the TIA for a statement of such terms. To the
extent any provision of this Note conflicts with the express provisions of the
Indenture, the provisions of the Indenture shall govern and be controlling. The
Notes are unsecured obligations of the Company. The Indenture does not limit
the aggregate principal amount of Notes that may be issued thereunder.

 

(5)                                  OPTIONAL REDEMPTION. The Notes are not redeemable by the
Company prior to November 20, 2008. At any time on or after November 20,
2008, and before November 20, 2010 if the Closing Sale Price of the Common
Stock for at least 20 Trading Days in the 30 consecutive Trading Day period
ending on the day one prior to the date of a Redemption Notice is greater than
130% of the Applicable Conversion Price on the date of such notice, the Company
may redeem the notes in whole or in part at a cash redemption price equal to
the sum of (1) 100% of the principal amount of the notes to be redeemed;
plus (2) a Make-Whole Premium (as defined in the Indenture); plus (3) accrued
and unpaid interest on the principal amount of the Notes redeemed to the
Redemption Date. On or after November 20, 2010, the Company may at its
option redeem the Notes, in whole or in part, at a cash redemption price equal
to 100% of their principal amount, plus any accrued and unpaid interest, if
any, to the Redemption Date.

 

(6)                                  REPURCHASE AT THE OPTION OF HOLDER UPON SPECIFIED DATES. On
each of November 15, 2010, 2015 and 2020 (the “Repurchase
Dates”), each Holder may require the Company to repurchase the Notes
held by such Holder, and the Company shall repurchase on each of the Repurchase
Dates, any or all Notes submitted for repurchase for cash, at a price equal to
100% of the aggregate principal amount thereof plus accrued and unpaid
interest, if any, to but not including the applicable Repurchase Date.

 

(7)                                  REPURCHASE AT THE OPTION OF HOLDER UPON A FUNDAMENTAL CHANGE.
Upon the occurrence of a Fundamental Change at any time prior to stated
Maturity, each Holder may require the Company to repurchase the Notes on a date
chosen by the Company in its sole discretion that is no less than 20 Business
Days and no more than 35 Business Days after the mailing of the Fundamental
Change Repurchase Right Notice (the “Fundamental Change Repurchase Date”), and
the Company shall repurchase on the Fundamental Change Repurchase Date, any or
all Notes submitted for repurchase for cash, at a price equal to 100% of the
aggregate principal amount thereof plus accrued and unpaid interest, if any, to
but not including the Fundamental Change Repurchase Date (the “Fundamental Change Payment”), unless
such Fundamental Change Repurchase Date falls after a Regular Record Date and
on or prior to the corresponding Interest Payment Date, in which case the

 

3

 

Company shall
pay the full amount of accrued and unpaid interest payable on such Interest
Payment Date to the Holder of record at the close of business on the
corresponding Regular Record Date. At least 15 Business Days prior to the
expected effective date of a Fundamental Change (or if the Company does not
have actual notice of a Fundamental Change, as soon as the Company has actual
notice of such Fundamental Change), the Company will provide to all Holders of
the Notes, the Trustee, the Paying Agent and the Conversion Agent the
Fundamental Change Conversion Right Notice as required by the Indenture.

 

(8)                                  CONVERSION. Prior to Maturity, under certain circumstances
set forth in the Indenture, Holders of the Notes may surrender any portion of
the principal amount of any Note that is an integral multiple of $1,000 for
conversion (provided that the
principal amount of such Note to remain outstanding after such conversion is
equal to $2,000) into cash and, under certain circumstances set forth in the
Indenture, fully paid and non-assessable shares of Common Stock at the
Conversion Rate, determined as provided in the Indenture, in effect at the time
of conversion. However, the Company may elect to pay cash to Holders of Notes
surrendered for conversion in lieu of all or a portion of the Residual Value
Shares issuable upon conversion of such Notes. The Conversion Rate will
initially be 169.4341 shares of Common Stock per $1,000 principal amount of
Notes (which is equivalent to an initial Conversion Price of $5.90 per share),
but shall be adjusted under the circumstances specified in, and in accordance
with the terms of, the Indenture.

 

(9)                                  DENOMINATIONS, TRANSFER, EXCHANGE. The Notes are in registered form without coupons
in denominations of $2,000 and integral multiples of $1,000. The transfer of
Notes may be registered and Notes may be exchanged as provided in the Indenture.
The Registrar and the Trustee may require a Holder, among other things, to
furnish appropriate endorsements and transfer documents and the Company may
require a Holder to pay any taxes and fees required by law or permitted by the
Indenture. The Company need not exchange or register the transfer of any Note
or portion of a Note selected for conversion or repurchase, except for the
unconverted or unrepurchased portion of any Note being converted or repurchased
in part. Also, the Company need not exchange or register the transfer of any
Notes during the period between a record date and the corresponding Interest
Payment Date.

 

(10)                            PERSONS DEEMED OWNERS. The registered Holder of a Note may
be treated as its owner for all purposes.

 

(11)                            AMENDMENT, SUPPLEMENT AND WAIVER. Subject
to certain exceptions, the Indenture and the Notes may be amended or
supplemented with the consent of the Holders of at least a majority in
aggregate principal amount of the then outstanding Notes, including Additional
Notes, if any, voting as a single class, and any existing Default or compliance
with any provision of the Indenture and the Notes may be waived with the
consent of the Holders of a majority in aggregate principal amount of the then
outstanding Notes, including Additional Notes, if any, voting as a single class.
Without the consent of any Holder of a Note, the Indenture and the Notes may be
amended or supplemented to cure any ambiguity, defect or inconsistency in a
manner that does not adversely affect the interests of the Holders, to provide
for uncertificated Notes in addition to or in place of certificated Notes, to
provide

 

4

 

for a
successor Trustee under the Indenture, to provide for the assumption of the
Company’s obligations to the Holders of the Notes by a successor to the Company
in accordance with the provisions in the Indenture, to make any change that
would provide any additional rights or benefits to any or all of the Holders of
the Notes, to comply with requirements of the SEC in order to effect or maintain
the qualification of this Indenture under the TIA to increase the Conversion
Rate or reduce the Conversion Price, provided that
the increase or reduction, as the case may be, is in accordance with the terms
of this Indenture or will not adversely affect the interests of the Holders of
the Notes, or to conform the text of the Indenture or the Notes to any
provision that was meant to be a verbatim description thereof as originally
communicated to investors.

 

(12)                            EVENTS OF DEFAULT. Each of the following is an “Event of Default”:

 

(1)               a default in the payment of any
installment of interest upon this Note as and when the same shall become due
and payable, and continuance of such default for a period of 30 days;

 

(2)               default in the payment of all or any
part of the principal of upon this Note as and when the same shall become due
and payable at Maturity;

 

(3)               default
on the part of the Company in the performance, or breach by the Company, of any
other covenant or agreement on the part of the Company set forth in this Note
or in the Indenture (other than a covenant or agreement in respect of which a
default or breach by the Company is specifically dealt with in Section 6.01
of the Indenture and other than those which have been included in this Note, if
any, or the Indenture solely for the benefit of Securities of any series other
than the series of the Notes), and continuance of such default or breach
without cure or waiver for a period of 90 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 Notes at the time Outstanding, a written notice specifying such failure and
requiring the same to be remedied;

 

(4)               the
Company fails to pay the purchase price of any Note when due (including,
without limitation, on any Repurchase Date, the delivery of cash as a return of
principal, any cash in lieu of fractional shares, and any shares, as the case
may be, upon conversion within the time period required by this Indenture);

 

(5)               the
Company fails to provide timely notice of a Fundamental Change, if required by
the Indenture, if such failure continues for 30 days after notice to the
Company of its failure to do so;

 

(6)               any
indebtedness for money borrowed by the Company or one of its Significant
Subsidiaries (all or substantially all of the outstanding voting securities of
which are owned, directly, or indirectly, by the Company) in an aggregate
outstanding

 

5

 

principal
amount in excess of $100.0 million is not paid at final maturity or upon
acceleration and such indebtedness is not discharged, or such acceleration is
not cured or rescinded, within 10 days after written notice as provided in Section 6.02
of the Indenture, provided, however,
that in the event the Notes receive at any later date a rating of BBB- or
greater by Standard & Poor’s Corporation or any successor rating
agency (“S&P”) or Baa3 or
greater by Moody’s Investors Service, Inc. or any successor rating agency
(“Moody’s”) (or if such ratings
are not issued for the Notes by S&P or Moody’s, the corporate rating or
successor equivalent (in the case of S&P) or the senior implied rating or
successor equivalent (in the case of Moody’s) of the Company), then this clause
(6) shall not be applicable and shall be of no further force or effect
upon and after the date the Notes receive any such rating;

 

(7)               failure
by the Company or any of its Significant Subsidiaries (all or substantially all
of the outstanding voting securities of which are owned, directly, or
indirectly, by the Company)  to pay final
and non-appealable judgments entered by a court or courts of competent
jurisdiction, the aggregate uninsured or unbonded portion of which is at least
$100.0 million, if the judgments are not paid, discharged or stayed within 60
days; provided, however,
that in the event the Notes receive at any later date a rating of BBB- or
greater by S&P or Baa3 or greater by Moody’s (or if such ratings are not
issued for the Notes by S&P or Moody’s, the corporate rating or successor
equivalent (in the case of S&P) or the senior implied rating or successor
equivalent (in the case of Moody’s) of the Company) , then this clause (7) shall
not be applicable and shall be of no further force or effect upon and after the
date the Notes receive any such rating;

 

(8)               the
Company or any of its Subsidiaries that is a Significant Subsidiary or any
group of Subsidiaries of the Company that, taken together, would constitute a
Significant Subsidiary pursuant to or within the meaning of Bankruptcy Law:

 

(A)                              commences a voluntary
case,

 

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

 

(C)                                consents to the
appointment of a custodian of it or for all or substantially all of its
property, or

 

(D)                               makes a general
assignment for the benefit of its creditors; and

 

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

 

(A)                              is for relief against the
Company or any of its Subsidiaries that is a Significant Subsidiary or any
group of Subsidiaries of the Company that, taken together, would constitute a
Significant Subsidiary in an involuntary case;

 

6

 

(B)                                appoints a custodian of
the Company or any of its Subsidiaries that is a Significant Subsidiary or any
group of Subsidiaries of the Company that, taken together, would constitute a
Significant Subsidiary or for all or substantially all of the property of the
Company or any of its Subsidiaries that is a Significant Subsidiary or any
group of Subsidiaries of the Company that, taken together, would constitute a
Significant Subsidiary; or

 

(C)                                orders the liquidation
of the Company or any of its Subsidiaries that is a Significant Subsidiary or
any group of Subsidiaries of the Company that, taken together, would constitute
a Significant Subsidiary;

 

and the order or decree remains unstayed and
in effect for 90 consecutive days.

 

(13)                            TRUSTEE DEALINGS WITH COMPANY. The Trustee, in its individual
or any other capacity, may make loans to, accept deposits from, and perform
services for the Company or its Affiliates, and may otherwise deal with the
Company or its Affiliates, as if it were not the Trustee.

 

(14)                            NO RECOURSE AGAINST OTHERS. A director, officer, employee,
incorporator or stockholder of the Company, as such, will not have any
liability for any obligations of the Company under the Notes 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 Note waives and releases all such
liability. The waiver and release are part of the consideration for the
issuance of the Notes.

 

(15)                            OPEN MARKET PURCHASES. The Company may, to the extent permitted
by applicable law, at any time, and from time to time, purchase Notes at any
price in the open market or otherwise.

 

(16)                            AUTHENTICATION. This Note will not be valid until
authenticated by the manual signature of the Trustee or an authenticating
agent.

 

(17)                            ABBREVIATIONS. Customary abbreviations may be used in the
name of a Holder or an assignee, such as: 
TEN COM (= tenants in common), TEN ENT (= tenants by the entireties), JT
TEN (= joint tenants with right of survivorship and not as tenants in common),
CUST (= Custodian), and U/G/M/A (= Uniform Gifts to Minors Act).

 

(18)                            CUSIP NUMBERS. Pursuant to a recommendation promulgated by
the Committee on Uniform Security Identification Procedures, the Company has
caused CUSIP numbers to be printed on the Notes, and the Trustee may use CUSIP
numbers in notices of repurchase or conversion as a convenience to Holders. No
representation is made as to the accuracy of such numbers either as printed on
the Notes or as contained in any notice of repurchase or conversion, and
reliance may be placed only on the other identification numbers placed thereon.

 

7

 

(19)                            GOVERNING
LAW. THE INTERNAL LAW OF THE STATE OF NEW YORK WILL GOVERN AND BE USED TO
CONSTRUE THE INDENTURE AND THIS NOTE WITHOUT GIVING EFFECT TO APPLICABLE
PRINCIPLES OF CONFLICTS OF LAW TO THE EXTENT THAT THE APPLICATION OF THE LAWS
OF ANOTHER JURISDICTION WOULD BE REQUIRED THEREBY.

 

8

 

ASSIGNMENT FORM

 

To assign this
Note, fill in the form below:

 

	
  (I) or (we) assign and transfer this Note
  to:

  	
   

  
	
   

  	
  (Insert
  assignee’s legal name)

  

 

	
   

  
	
  (Insert
  assignee’s soc. sec. or tax I.D. no.)

  
	
   

  
	
   

  
	
   

  
	
   

  
	
   

  
	
   

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

  

 

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

 

	
  Date:

  	
   

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Your Signature:

  	
   

  
	
   

  	
   

  	
  (Sign exactly as your name appears on the face

  of this Note)

  
	
   

  	
   

  
	
   

  	
   

  
	
  Signature
  Guarantee*:

  	
   

  	
   

  
								

 

 

* Participant
in a recognized Signature Guarantee Medallion Program (or other signature guarantor
acceptable to the Trustee).

 

9

 

OPTION OF HOLDER TO ELECT PURCHASE

 

Check the box
below if you elect to have all or a portion of this Note redeemed or purchased
by the Company pursuant to Section 4.07 or 4.08 of the First Supplemental
Indenture:

 

Section 4.07 o       Section 4.08 o

 

If you want to
have only part of the Note purchased by the Company pursuant to Section 4.07
or 4.08 of the First Supplemental Indenture, state the amount you elect to have
purchased:

 

$             

 

	
  Date:

  	
   

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Your Signature:

  	
   

  
	
   

  	
   

  	
  (Sign exactly as your name appears on the face of

  this Note)

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Tax Identification No.:

  	
   

  
	
   

  	
   

  
	
  Signature
  Guarantee*:

  	
   

  	
   

  
									

 

* Participant
in a recognized Signature Guarantee Medallion Program (or other signature guarantor
acceptable to the Trustee).

 

 

SCHEDULE OF EXCHANGES OF INTERESTS IN THE GLOBAL NOTE

 

The following
exchanges of a part of this Global Note for an interest in another Global Note
or for a Definitive Note, or exchanges of a part of another Global Note or
Definitive Note for an interest in this Global Note, have been made:

 

	
  Date of Exchange

  	
   

  	
  Amount of decrease

  in Principal Amount

  of this Global Note

  	
   

  	
  Amount of increase in

  Principal Amount of

  this Global Note

  	
   

  	
  Principal Amount of

  this Global Note

  following such

  decrease (or increase)

  	
   

  	
  Signature of

  authorized officer of

  Trustee or Custodian

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

 

EXHIBIT B

 

FORM OF FUNDAMENTAL CHANGE REPURCHASE NOTICE

 

Qwest Communications International Inc.

Attn:  Treasury Department

1801 California Street

Denver, Colorado 80202

 

U.S. Bank National Association 

Attn:  Corporate Trust Services

950  17th Street, Suite 300

Denver, CO  80202

 

Re:                               3.50%
Convertible Senior Notes due November 15, 2025

— REPURCHASE NOTICE (CUSIP 749121 BY 4)

 

Reference is
hereby made to the Indenture, dated as of November 8, 2005 (the “Base  Indenture”) as
supplemented by the First Supplemental Indenture dated as of November 8,
2005 (the Base Indenture as supplemented by the First Supplemental Indenture,
the “Indenture”), between
Qwest Communications International Inc., as issuer (the “Company”)
and U.S. Bank National Association, as trustee (the “Trustee”).
Capitalized terms used but not defined herein shall have the meanings given to
them in the First Supplemental Indenture.

 

The undersigned
hereby directs the Trustee or the Company to pay it pursuant to Section 4.07
of the First Supplemental Indenture an amount in cash valued as set forth in
the Indenture, equal to 100% of the principal amount to be repurchased (as set
forth below), plus interest accrued to, but excluding, the Repurchase Date, as
provided in the Indenture.

 

	
  Dated:

  	
   

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Signature(s)

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  [Signature
  Guaranteed]*

  	
   

  
							

 

*                                         [Signature(s) must be guaranteed by an Eligible Guarantor Institution with membership
in an approved signature guarantee program pursuant to Rule 17Ad-15 under
the Securities Exchange Act of 1934.]

 

 

	
  If Notes are to
  be registered in the name of a Person

  
	
  other than the
  Holder, please print such Person’s

  
	
  name and
  address:

  
	
   

  
	
   

  	
   

  
	
  (Name)

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  (Address)

  
	
   

  
	
   

  	
   

  
	
  Social Security
  or other Identification Number, if

  any.

  

 

If only a
portion of a Definitive Note is to be repurchased, please indicate:

 

1.                                       Principal
amount to be converted:   $                

 

2.                                       Principal
amount and denomination of Notes representing unpurchased principal amount to
be issued:

 

	
  Amount: $                          

  	
  Denominations:
  $                    

  

 

($2,000 or any
integral multiple of $1,000 in excess thereof, provided that the unconverted
portion of such principal amount is $2,000 or any integral multiple of  $1,000 in excess thereof.)

 

2

 

EXHIBIT C

 

FORM OF CONVERSION NOTICE

 

Qwest Communications International Inc.

Attn:  Treasury Department

1801 California Street

Denver, Colorado 80202

 

U.S. Bank National Association,

Corporate Trust Services

Attn:  Specialized Finance

60 Livingston Avenue

St. Paul, MN  55107

 

U.S. Bank National Association 

Attn:  Corporate Trust Services

950  17th Street, Suite 300

Denver, CO  80202

 

Re:                               3.50%
Convertible Senior Notes due November 15, 2025

— CONVERSION NOTICE (CUSIP 749121 BY 4)

 

Reference is
hereby made to the Indenture, dated as of November 8, 2005 (the “Base  Indenture”) as
supplemented by the First Supplemental Indenture dated as of November 8,
2005 (the Base Indenture, as supplemented by the First Supplemented Indenture,
the “Indenture”), between
Qwest Communications International Inc., as issuer (the “Company”)
and U.S. Bank National Association, as trustee (the “Trustee”).
Capitalized terms used but not defined herein shall have the meanings given to
them in the First Supplemental Indenture.

 

                                                                     
(the “Owner”) owns
and proposes to convert the Note[s] or interest in such Note[s] specified
herein, in the principal amount of $                          
in such Note[s] or interests (the “Conversion”) pursuant to Article 8 of the First Supplemental
Indenture. In connection with the Conversion, the Owner hereby certifies that,
as Owner of this Note, he/she hereby irrevocably exercises the option to convert
this Note, or such portion of this Note in the principal amount designated
above into cash in the amount equal to the lesser of (A) the principal
amount of each Note or (B) the Conversion Value, and, to the extent the
Conversion Value exceeds $1,000, the appropriate number of Residual Value
Shares as determined in accordance with the terms of the Indenture; provided,
however, that the Company may elect to pay cash in lieu of all or a portion of
the Residual Value Shares issuable upon conversion of such Notes. The Owner
directs that such cash and any shares, together with a check in payment for any
fractional share and any Notes representing any unconverted principal amount
hereof, be delivered to and be registered in the name of the undersigned unless
a different name has been indicated below. If shares of Common Stock or Notes
are to be registered in the name of a Person other than the undersigned, (a) the

 

 

undersigned
will pay all transfer taxes payable with respect thereto and (b) signature(s)
must be guaranteed by an Eligible Guarantor Institution with membership in an
approved signature guarantee program pursuant to Rule 17Ad-15 under the
Securities Exchange Act of 1934. Any amount required to be paid by the
undersigned on account of interest accompanies this Note.

 

	
  Dated:

  	
   

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Signature(s)

  
	
   

  	
   

  
	
  If shares of
  Common Stock or Notes are to be registered

  in the name of a Person other than the Holder,

  please print such Person’s name and address:

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  (Name)

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  (Address)

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Social Security
  or other Identification Number, if

  any.

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  [Signature
  Guaranteed]

  	
   

  
						

 

If only a
portion of a Definitive Note is to be converted, please indicate:

 

1.                                       Principal
amount to be converted:  $                  

 

2.                                       Principal
amount and denomination of Notes representing unconverted principal amount to
be issued:

 

	
  Amount:
  $                         

  	
  Denominations:
  $                    

  

 

($2,000 or any
integral multiple of $1,000 in excess thereof, provided that the unconverted
portion of such principal amount is $2,000 or any integral multiple of $1,000
in excess thereof.)

 

2

 

EXHIBIT D

 

FORM OF REPURCHASE NOTICE

 

Qwest Communications International Inc.

Attn:  Treasury Department

1801 California Street

Denver, Colorado 80202

 

U.S. Bank National Association,

Corporate Trust Services

Attn:  Specialized Finance

60 Livingston Avenue

St. Paul, MN  55107

 

U.S. Bank National Association,

Corporate Trust Services

950  17th Street, Suite 300

Denver, CO  80202

Attn:  Corporate Trust Services

 

Re:                               3.50%
Convertible Senior Notes due November 15, 2025

—  NOTICE OF REPURCHASE (CUSIP 749121
BY 4)

 

Reference is
hereby made to the Indenture, dated as of November 8, 2005 (the “Base  Indenture”), as
supplemented by the First Supplemental Indenture dated as of November 8,
2005 (the Base Indenture, as supplemented by the First Supplemental Indenture,
the “Indenture”), between
Qwest Communications International Inc., as issuer (the “Company”)
and U.S. Bank National Association, as trustee (the “Trustee”).
Capitalized terms used but not defined herein shall have the meanings given to
them in the First Supplemental Indenture.

 

The
undersigned hereby directs the Trustee or the Company to pay it pursuant to Section 4.08
of the First Supplemental Indenture or an amount in cash valued as set forth in
the Indenture, equal to 100% of the principal amount to be repurchased (as set
forth below), plus interest accrued to, but excluding, the Repurchase Date, as
provided in the Indenture.

 

Any amount
required to be paid by the undersigned on account of interest accompanies this
Note.

 

 

	
  Dated:

  	
   

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Signature(s)

  

 

 

	
  If Notes are to
  be registered in the name of a Person

  other than the Holder, please print such Person’s

  name and address:

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  (Name)

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  (Address)

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Social Security
  or other Identification Number, if

  any.

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  [Signature
  Guaranteed]

  	
   

  

 

If only a
portion of a Definitive Note is to be redeemed, please indicate:

 

1.                                       Principal
amount to be redeemed:  $

 

2.                                       Principal
amount and denomination of Notes representing unpurchased principal amount to
be issued:

 

	
  Amount:
  $                     

  	
  Denominations:
  $                

  

 

($2,000 or any
integral multiple of $1,000 in excess thereof, provided that the unredeemed
portion of such principal amount is $2,000 or any integral multiple of $1,000
in excess thereof.)

 

2Exhibit
4.1

 

 

 

INDENTURE

 

 

Dated as of November
3, 2005

 

 

among

 

 

HSBC AUTOMOTIVE
TRUST 2005-3

Issuer,

 

 

JPMORGAN CHASE
BANK, N.A.

Indenture Trustee

 

 

and

 

 

HSBC BANK USA, NATIONAL ASSOCIATION

Administrator

 

 

 

 

TABLE
OF CONTENTS

 

	
   

  	
   

  	
  Page

  
	
   

  	
   

  
	
  ARTICLE
  I. Definitions and Incorporation by Reference

  	
  1

  
	
   

  	
   

  	
   

  
	
  SECTION
  1.1

  	
  Definitions

  	
  1

  
	
  SECTION
  1.2

  	
  Incorporation
  by Reference of the Trust Indenture Act

  	
  6

  
	
  SECTION
  1.3

  	
  Rules
  of Construction

  	
  7

  
	
  SECTION
  1.4

  	
  Action
  by or Consent of Noteholders and Certificateholders

  	
  7

  
	
   

  	
   

  	
   

  
	
  ARTICLE II. The
  Notes

  	
  8

  
	
   

  	
   

  	
   

  
	
  SECTION
  2.1

  	
  Form;
  Amount Limited; Issuable in Series

  	
  8

  
	
  SECTION
  2.2

  	
  Execution,
  Authentication and Delivery

  	
  8

  
	
  SECTION
  2.3

  	
  Temporary
  Notes

  	
  9

  
	
  SECTION
  2.4

  	
  Registration;
  Registration of Transfer and Exchange

  	
  9

  
	
  SECTION
  2.5

  	
  Mutilated,
  Destroyed, Lost or Stolen Notes

  	
  12

  
	
  SECTION
  2.6

  	
  Persons
  Deemed Owner

  	
  13

  
	
  SECTION
  2.7

  	
  Payment
  of Principal and Interest; Defaulted Interest

  	
  13

  
	
  SECTION
  2.8

  	
  Cancellation

  	
  14

  
	
  SECTION 2.9

  	
  Reserved

  	
  14

  
	
  SECTION
  2.10

  	
  Book-Entry
  Notes

  	
  14

  
	
  SECTION
  2.11

  	
  Notices
  to Clearing Agency

  	
  15

  
	
  SECTION
  2.12

  	
  Definitive
  Notes

  	
  15

  
	
  SECTION
  2.13

  	
  Final
  Distribution

  	
  16

  
	
   

  	
   

  	
   

  
	
  ARTICLE III.
  Covenants

  	
  17

  
	
   

  	
   

  	
   

  
	
  SECTION
  3.1

  	
  Payment
  of Principal and Interest

  	
  17

  
	
  SECTION
  3.2

  	
  Maintenance
  of Office or Agency

  	
  17

  
	
  SECTION
  3.3

  	
  Money
  for Payments to be Held in Trust

  	
  17

  
	
  SECTION
  3.4

  	
  Existence

  	
  19

  
	
  SECTION
  3.5

  	
  Protection
  of Series Trust Estate

  	
  19

  
	
  SECTION
  3.6

  	
  Opinions
  as to Series Trust Estate

  	
  20

  
	
  SECTION
  3.7

  	
  Performance
  of Obligations; Servicing of Receivables

  	
  21

  
	
  SECTION
  3.8

  	
  Negative
  Covenants

  	
  21

  
	
  SECTION
  3.9

  	
  Annual
  Statement as to Compliance

  	
  22

  
	
  SECTION
  3.10

  	
  Issuer
  May Consolidate, Etc. Only on Certain Terms

  	
  22

  
	
  SECTION
  3.11

  	
  Successor
  or Transferee

  	
  24

  
	
  SECTION
  3.12

  	
  No
  Other Business

  	
  25

  
	
  SECTION
  3.13

  	
  No
  Borrowing

  	
  25

  
	
  SECTION
  3.14

  	
  Master
  Servicer’s Obligations

  	
  25

  
	
  SECTION
  3.15

  	
  Guarantees,
  Loans, Advances and Other Liabilities

  	
  25

  
	
  SECTION
  3.16

  	
  Capital
  Expenditures

  	
  25

  
	
  SECTION
  3.17

  	
  Compliance
  with Laws

  	
  25

  
	
  SECTION
  3.18

  	
  Restricted
  Payments

  	
  26

  
	
  SECTION
  3.19

  	
  Notice
  of Events of Default

  	
  26

  
	
  SECTION
  3.20

  	
  Further
  Instruments and Acts

  	
  26

  
	
  SECTION
  3.21

  	
  Amendments
  of Master Sale and Servicing Agreement and Trust Agreement

  	
  26

  
	
  SECTION
  3.22

  	
  Income
  Tax Characterization

  	
  26

  
				

 

i

 

	
  ARTICLE
  IV. Satisfaction and Discharge

  	
  26

  
	
   

  	
   

  	
   

  
	
  SECTION
  4.1

  	
  Satisfaction
  and Discharge of Indenture

  	
  26

  
	
  SECTION
  4.2

  	
  Application
  of Trust Money

  	
  27

  
	
  SECTION
  4.3

  	
  Repayment
  of Monies Held by Note Paying Agent

  	
  28

  
	
   

  	
   

  	
   

  
	
  ARTICLE V.
  Remedies

  	
  28

  
	
   

  	
   

  	
   

  
	
  SECTION
  5.1

  	
  Events
  of Default

  	
  28

  
	
  SECTION
  5.2

  	
  Collection
  of Indebtedness and Suits for Enforcement by Indenture Trustee

  	
  28

  
	
  SECTION
  5.3

  	
  Limitation
  of Suits

  	
  30

  
	
  SECTION
  5.4

  	
  Unconditional
  Rights of Noteholders To Receive Principal and Interest

  	
  31

  
	
  SECTION
  5.5

  	
  Restoration
  of Rights and Remedies

  	
  31

  
	
  SECTION
  5.6

  	
  Rights
  and Remedies Cumulative

  	
  31

  
	
  SECTION
  5.7

  	
  Delay
  or Omission Not a Waiver

  	
  31

  
	
  SECTION
  5.8

  	
  Limitation
  on Voting of Preferred Stock; Control by Noteholders

  	
  31

  
	
  SECTION
  5.9

  	
  Waiver
  of Past Defaults

  	
  32

  
	
  SECTION
  5.10

  	
  Undertaking
  for Costs

  	
  32

  
	
  SECTION
  5.11

  	
  Waiver of
  Stay or Extension Laws

  	
  33

  
	
  SECTION
  5.12

  	
  Action on
  Notes

  	
  33

  
	
  SECTION
  5.13

  	
  Performance
  and Enforcement of Certain Obligations

  	
  33

  
	
   

  	
   

  	
   

  
	
  ARTICLE VI.
  The Indenture Trustee and the Administrator

  	
  34

  
	
   

  	
   

  	
   

  
	
  SECTION 6.1

  	
  Duties of
  Indenture Trustee

  	
  34

  
	
  SECTION 6.2

  	
  Rights of
  Indenture Trustee

  	
  36

  
	
  SECTION 6.3

  	
  Individual
  Rights of Indenture Trustee

  	
  37

  
	
  SECTION 6.4

  	
  Indenture
  Trustee’s Disclaimer

  	
  37

  
	
  SECTION 6.5

  	
  Notice of
  Defaults

  	
  37

  
	
  SECTION 6.6

  	
  Reports by
  Master Servicer to Holders

  	
  38

  
	
  SECTION 6.7

  	
  Indenture
  Trustee Compensation and Indemnification

  	
  38

  
	
  SECTION 6.8

  	
  Replacement
  of Indenture Trustee

  	
  39

  
	
  SECTION 6.9

  	
  Successor
  Indenture Trustee by Merger

  	
  40

  
	
  SECTION
  6.10

  	
  Appointment
  of Co-Indenture Trustee or Separate Indenture Trustee

  	
  40

  
	
  SECTION
  6.11

  	
  Eligibility:
  Disqualification

  	
  42

  
	
  SECTION
  6.12

  	
  Preferential
  Collection of Claims Against Issuer

  	
  42

  
	
  SECTION
  6.13

  	
  Representations
  and Warranties of the Indenture Trustee

  	
  42

  
	
  SECTION
  6.14

  	
  Waiver of
  Setoffs

  	
  43

  
	
  SECTION
  6.15

  	
  No Consent
  to Certain Acts of Seller

  	
  43

  
	
  SECTION
  6.16

  	
  Duties,
  Liabilities and Limitations on Liability of Administrator

  	
  43

  
	
  SECTION
  6.17

  	
  Administrator
  Compensation and Indemnification

  	
  44

  
	
  SECTION
  6.18

  	
  Replacement
  of Administrator

  	
  45

  
	
  SECTION
  6.19

  	
  Successor
  Administrator by Merger

  	
  46

  
	
   

  	
   

  	
   

  
	
  ARTICLE
  VII. Noteholders’ Lists and Reports

  	
  46

  
	
   

  	
   

  	
   

  
	
  SECTION 7.1

  	
  Issuer To
  Furnish To Indenture Trustee and Administrator Names and Addresses of
  Noteholders

  	
  46

  

 

ii

 

	
  SECTION 7.2

  	
  Preservation
  of Information; Communications to Noteholders

  	
  47

  
	
  SECTION 7.3

  	
  Reports by Issuer

  	
  47

  
	
  SECTION 7.4

  	
  Reports by
  Indenture Trustee

  	
  47

  
	
   

  	
   

  	
   

  
	
  ARTICLE
  VIII. Accounts, Disbursements and Releases

  	
  48

  
	
   

  	
   

  	
   

  
	
  SECTION 8.1

  	
  Collection
  of Money

  	
  48

  
	
  SECTION 8.2

  	
  Release of
  Series Trust Estate

  	
  48

  
	
  SECTION 8.3

  	
  Opinion of
  Counsel

  	
  49

  
	
   

  	
   

  	
   

  
	
  ARTICLE IX.
  Amendments; the Series Supplement

  	
  49

  
	
   

  	
   

  	
   

  
	
  SECTION 9.1

  	
  Amendments
  Without Consent of Noteholders

  	
  49

  
	
  SECTION 9.2

  	
  Amendments
  With Consent of Noteholders

  	
  50

  
	
  SECTION 9.3

  	
  Series
  Supplement Authorizing the Notes

  	
  52

  
	
  SECTION 9.4

  	
  Execution
  of the Series Supplement

  	
  52

  
	
  SECTION 9.5

  	
  Effect of
  Series Supplement

  	
  52

  
	
  SECTION 9.6

  	
  Conformity
  With Trust Indenture Act

  	
  52

  
	
  SECTION 9.7

  	
  Reference
  in Notes to the Series Supplement

  	
  52

  
	
   

  	
   

  	
   

  
	
  ARTICLE
  X. [Reserved]

  	
  53

  
	
   

  	
   

  	
   

  
	
  ARTICLE XI.
  Miscellaneous

  	
  53

  
	
   

  	
   

  	
   

  
	
  SECTION
  11.1

  	
  Compliance
  Certificates and Opinions, etc.

  	
  53

  
	
  SECTION
  11.2

  	
  Form of
  Documents Delivered to Indenture Trustee

  	
  55

  
	
  SECTION 11.3

  	
  Acts of
  Noteholders

  	
  55

  
	
  SECTION 11.4

  	
  Notices,
  etc., to Indenture Trustee, Issuer and Rating Agencies

  	
  56

  
	
  SECTION
  11.5

  	
  Notices to
  Noteholders; Waiver

  	
  57

  
	
  SECTION
  11.6

  	
  Alternate
  Payment and Notice Provisions

  	
  57

  
	
  SECTION
  11.7

  	
  Conflict
  with TIA

  	
  58

  
	
  SECTION
  11.8

  	
  Effect of
  Headings and Table of Contents

  	
  58

  
	
  SECTION
  11.9

  	
  Successors
  and Assigns

  	
  58

  
	
  SECTION
  11.10

  	
  Separability

  	
  58

  
	
  SECTION
  11.11

  	
  Benefits of
  Indenture

  	
  58

  
	
  SECTION
  11.12

  	
  Legal
  Holidays

  	
  58

  
	
  SECTION
  11.13

  	
  GOVERNING
  LAW

  	
  58

  
	
  SECTION
  11.14

  	
  Counterparts

  	
  59

  
	
  SECTION
  11.15

  	
  Recording
  of Indenture

  	
  59

  
	
  SECTION
  11.16

  	
  Trust
  Obligation

  	
  59

  
	
  SECTION
  11.17

  	
  No Petition

  	
  59

  
	
  SECTION 11.18

  	
  Limited Recourse

  	
  60

  
	
  SECTION
  11.19

  	
  Inspection

  	
  60

  
	
  SECTION
  11.20

  	
  Limitation
  of Liability

  	
  60

  

 

	
  EXHIBIT A – Form of Transferee
  Certificate

  	
   

  

 

iii

 

INDENTURE dated as of November 3, 2005, among HSBC
AUTOMOTIVE TRUST 2005-3, a Delaware statutory trust (the “Issuer”), JPMORGAN
CHASE BANK, N.A., a national banking association, as indenture trustee (the “Indenture
Trustee”) and HSBC BANK
USA, NATIONAL ASSOCIATION, a national banking association, as
administrator (the “Administrator”).

 

In consideration of the mutual agreements contained
herein, and of other good and valuable consideration the receipt and adequacy
of which are hereby acknowledged, the parties agree as follows:

 

GRANTING CLAUSE

 

In order to secure the due and punctual payment of the
principal of and interest on the Notes when and as the same shall become due
and payable, whether as scheduled, by declaration of acceleration, prepayment
or otherwise, the Issuer, pursuant to the Series Supplement, shall pledge the
Series Trust Estate to the Indenture Trustee, all for the benefit of the
Indenture Trustee for the benefit of the Secured Parties.

 

ARTICLE I.

Definitions and Incorporation by Reference

 

SECTION 1.1         Definitions.  Except as otherwise specified herein, the
following terms have the respective meanings set forth below for all purposes
of this Indenture.

 

“Act” has the meaning specified in Section 11.3(a).

 

“Administrator” means HSBC Bank USA, National Association,
a national banking association, as administrator under this Indenture and the
other Basic Documents to which it is a party, or any successor administrator hereunder
and thereunder.

 

“Authorized Officer” means, with respect to the Issuer
and the Master Servicer, any officer or agent acting pursuant to a power of
attorney of the Owner Trustee or the Master Servicer, as applicable, who is
authorized to act for the Owner Trustee or the Master Servicer, as applicable,
in matters relating to the Issuer and who is identified on the list of
Authorized Officers delivered by each of the Owner Trustee and the Master
Servicer to the Indenture Trustee and the Administrator on the Closing Date (as
such list may be modified or supplemented from time to time thereafter).

 

“Book Entry Notes” means any beneficial interest in
the Notes, ownership and transfers of which shall be made through book entries
by a Clearing Agency as described in Section 2.10.

 

“Class” means all of the Notes having the same
specified payment terms and priority of payment.

 

1

 

“Class SV Preferred Stock” means the preferred stock
of the Seller.

 

“Clearing Agency” means an organization registered as
a “clearing agency” pursuant to Section 17A of the Exchange Act.

 

“Clearing Agency Participant” means a broker, dealer,
bank, other financial institution or other Person for whom from time to time a
Clearing Agency effects book-entry transfers and pledges of securities
deposited with the Clearing Agency.

 

“Code” means the Internal Revenue Code of 1986, as
amended from time to time, and the Treasury Regulations promulgated thereunder.

 

“Corporate Trust Office” has the meaning assigned to
such term in the Series Supplement.

 

“Default” means any occurrence that is, or with notice
or the lapse of time or both would become, an Event of Default.

 

“Definitive Notes” has the meaning specified in
Section 2.10.

 

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

 

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

 

“Executive Officer” means, with respect to any
corporation, the Chief Executive Officer, Chief Operating Officer, Chief
Financial Officer, President, Executive Vice President, any Vice President, the
Secretary, the Treasurer, or any Assistant Treasurer of such corporation.

 

“Grant” means mortgage, pledge, bargain, sell,
warrant, alienate, remise, release, convey, assign, transfer, create, grant a
lien upon and a security interest in and right of set-off against, deposit, set
over and confirm pursuant to this Indenture. 
A Grant of the Series Trust Estate or of any other agreement or
instrument shall include all rights, powers and options (but none of the
obligations) of the granting party thereunder, including the immediate and continuing
right to claim for, collect, receive and give receipt for principal and
interest payments in respect of the Series Trust Estate and all other monies
payable thereunder, to give and receive notices and other communications, to
make waivers or other agreements, to exercise all rights and options, to bring
proceedings in the name of the granting party or otherwise and generally to do
and receive anything that the granting party is or may be entitled to do or
receive thereunder or with respect thereto.

 

“Holder” or “Noteholder” means the Person in whose
name a Note is registered on the Note Register.

 

“Indebtedness” means, with respect to any Person at
any time, (a) indebtedness or liability of such Person for borrowed money
whether or not evidenced by bonds, debentures, notes or other instruments, or
for the deferred purchase price of

 

2

 

property or services (including trade obligations);
(b) obligations of such Person as lessee under leases which should have been or
should be, in accordance with generally accepted accounting principles,
recorded as capital leases; (c) current liabilities of such Person in respect
of unfunded vested benefits under plans covered by Title IV of ERISA; (d)
obligations issued for or liabilities incurred on the account of such Person;
(e) obligations or liabilities of such Person arising under acceptance
facilities; (f) obligations of such Person under any guarantees, endorsements
(other than for collection or deposit in the ordinary course of business) and
other contingent obligations to purchase, to provide funds for payment, to
supply funds to invest in any Person or otherwise to assure a creditor against
loss; (g) obligations of such Person secured by any lien on property or assets
of such Person, whether or not the obligations have been assumed by such
Person; or (h) obligations of such Person under any interest rate or currency
exchange agreement.

 

“Indenture Trustee” means, initially, JPMorgan Chase
Bank, N.A., a national banking association, not in its individual capacity but
as trustee under this Indenture, or any successor trustee under this Indenture.

 

“Indenture Trustee Fee” means the fees due to the
Indenture Trustee, as may be set forth in that certain fee letter, dated as of
the date hereof between the Master Servicer and the Indenture Trustee.

 

“Independent” means, when used with respect to any
specified Person, that the person (a) is in fact independent of the Issuer, any
other obligor upon the Notes, the Seller and any Affiliate of any of the
foregoing persons, (b) does not have any direct financial interest or any
material indirect financial interest in the Issuer, any such other obligor, the
Seller or any Affiliate of any of the foregoing Persons and (c) is not connected
with the Issuer, any such other obligor, the Seller or any Affiliate of any of
the foregoing Persons as an officer, employee, promoter, underwriter, trustee,
partner, director or Person performing similar functions.

 

“Independent Certificate” means a certificate or
opinion to be delivered to the Indenture Trustee under the circumstances
described in, and otherwise complying with, the applicable requirements of
Section 11.1, prepared by an Independent appraiser or other expert appointed
pursuant to an Issuer Order and approved by the Indenture Trustee in the
exercise of reasonable care, and such opinion or certificate shall state that
the signer has read the definition of “Independent” in this Indenture and that
the signer is Independent within the meaning thereof.

 

“Issuer Order” and “Issuer Request” means a written
order or request signed in the name of the Issuer by any one of its Authorized
Officers and delivered to the Indenture Trustee and/or the Administrator, as
the case may be.

 

“Master Sale and Servicing Agreement” has the meaning
assigned to such term in the Series Supplement.

 

“Moody’s” means Moody’s Investors Service, Inc., or
its successor.

 

“Notes” means the Notes authenticated and delivered
under this Indenture.

 

3

 

“Note Owner” means, with respect to a Book-Entry Note,
the person who is the owner of such Book-Entry Note, as reflected on the books
of the Clearing Agency, or on the books of a Person maintaining an account with
such Clearing Agency (directly as a Clearing Agency Participant or as an
indirect participant, in each case in accordance with the rules of such
Clearing Agency).

 

“Note Paying Agent” means the Administrator or any
other Person that meets the eligibility standards for the Indenture Trustee specified
in Section 6.11 and is authorized by the Issuer to make payments to and
distributions from the Collection Account, including payment of principal of or
interest on the Notes on behalf of the Issuer.

 

“Note Register” and “Note Registrar” have the
respective meanings specified in Section 2.4.

 

“Officer’s Certificate” means a certificate signed by
any Authorized Officer of the Issuer, under the circumstances described in, and
otherwise complying with, the applicable requirements of Section 11.1 and TIA
§ 314, and delivered to the Indenture Trustee and/or the Administrator, as
the case may be.  Unless otherwise
specified, any reference in this Indenture to an Officer’s Certificate shall be
to an Officer’s Certificate of any Authorized Officer of the Issuer.  Each certificate with respect to compliance
with a condition or covenant provided for in this Indenture shall include (1) a
statement that the Authorized Officer signing the certificate 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 contained in such
certificate 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
such person, such condition or covenant has been complied with.

 

“Outstanding” means, as of the date of determination,
all Notes theretofore authenticated and delivered under this Indenture except:

 

(i)            Notes
theretofore canceled by the Note Registrar or delivered to the Note Registrar
for cancellation;

 

(ii)           Notes
or portions thereof the payment for which money in the necessary amount has
been theretofore deposited with the Indenture Trustee or any Note Paying Agent
in trust for the Holders of such Notes (provided, however, that
if such Notes are to be redeemed, notice of such redemption has been duly given
pursuant to the Series Supplement or provision therefor, satisfactory to the
Indenture Trustee and the Administrator, has been made); and

 

(iii)          Notes
in exchange for or in lieu of other Notes which have been authenticated and
delivered pursuant to this Indenture unless proof satisfactory to

 

4

 

the Indenture Trustee and
the Administrator is presented that any such Notes are held by a bona fide
purchaser;

 

provided,
however, that in determining whether the Holders of the requisite
Outstanding Amount of the Notes have given any request, demand, authorization,
direction, notice, consent or waiver hereunder or under any Basic Document,
Notes owned by the Issuer, any other obligor upon the Notes, the Seller or any
Affiliate of any of the foregoing Persons shall be disregarded and deemed not
to be Outstanding, except that, in determining whether the Indenture Trustee and/or
the Administrator shall be protected in relying upon any such request, demand,
authorization, direction, notice, consent or waiver, only Notes that a
Responsible Officer of the Indenture Trustee or the Administrator, as the case
may be, either actually knows to be so owned or has received written notice
thereof shall be so disregarded.  Notes
so owned that have been pledged in good faith may be regarded as Outstanding if
the pledgee establishes to the satisfaction of the Indenture Trustee or the
Administrator, as the case may be, the pledgee’s right so to act with respect
to such Notes and that the pledgee is not the Issuer, any other obligor upon
the Notes, the Seller or any Affiliate of any of the foregoing Persons.

 

“Outstanding Amount” means the aggregate principal
amount of all Notes, or Class of Notes, as applicable, Outstanding at the date
of determination.

 

“Owner Trustee” has the meaning assigned to such term
in the Trust Agreement.

 

“Predecessor Note” means, with respect to any
particular Note, every previous Note evidencing all or a portion of the same
debt as that evidenced by such particular Note; and, for the purpose of this
definition, any Note authenticated and delivered under Section 2.5 in lieu of a
mutilated, lost, destroyed or stolen Note shall be deemed to evidence the same
debt as the mutilated, lost, destroyed or stolen Note.

 

“Proceeding” means any suit in equity, action at law
or other judicial or administrative proceeding.

 

“Record Date” means, with respect to a Distribution
Date, the close of business on the Business Day immediately preceding such
Distribution Date.  However, if
Definitive Notes are issued, the Record Date shall be the last Business Day of
the month preceding a Distribution Date.

 

“Registration Statement” has the meaning specified
therefor in the Securities Act.

 

“Responsible Officer” means, with respect to the
Indenture Trustee, the Administrator or the Owner Trustee, any officer within
the Corporate Trust Office of the Indenture Trustee, the Administrator or the
Owner Trustee, as the case may be, including any Vice President, Assistant Vice
President, Assistant Treasurer, Assistant Secretary, Financial Services Officer
or any other officer of the Indenture Trustee, the Administrator or the Owner
Trustee, as the case may be, customarily performing functions similar to

 

5

 

those performed by any of the above designated
officers and in each case having direct responsibility for the administration
of this Indenture.

 

“Secured Parties” has the meaning assigned to such
term in the Series Supplement.

 

“Securities Act” means the Securities Act of 1933, as
amended.

 

“Series Supplement” means the Series Supplement, dated
as of November 3, 2005, among the Master Servicer, the Issuer, the Seller, the
Indenture Trustee, the Owner Trustee and the Administrator, as such agreement
may be amended or supplemented from time to time.

 

“Series Trust Estate” has the meaning assigned to such
term in the Series Supplement.

 

“S&P” means Standard & Poor’s Rating Services,
a division of The McGraw-Hill Companies, Inc., or its successor.

 

“State” means any one of the 50 states of the United
States of America or the District of Columbia.

 

“Tranche” means all of the Notes having the same date
of authentication.

 

“Trust Agreement” has the meaning assigned to such
term in the Series Supplement.

 

“Trust Indenture Act” or “TIA” means the Trust
Indenture Act of 1939, as amended and as in force on the date hereof, unless
otherwise specifically provided.

 

“UCC” means, unless the context otherwise requires,
the Uniform Commercial Code, as in effect in the relevant jurisdiction, as
amended from time to time.

 

“Unregistered Note” means a Note which is not being
offered for sale hereunder pursuant to a Registration Statement.

 

Capitalized terms used herein and not otherwise defined
herein shall have the meanings assigned to them in the Master Sale and
Servicing Agreement, the Series Supplement or the Trust Agreement.

 

SECTION 1.2         Incorporation
by Reference of the Trust Indenture Act. 
Whenever this Indenture refers to a provision of the TIA, the 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 Notes.

 

6

 

“indenture security holder” means a Noteholder.

 

“indenture to be qualified” means this Indenture.

 

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

 

“obligor” on the indenture securities means the
Issuer.

 

All other TIA terms used in this Indenture that are
defined by the TIA, or defined by Commission rule have the meaning assigned to
them by such definitions.

 

SECTION 1.3         Rules
of Construction.  Unless the context
otherwise requires:

 

(i)            a term
has the meaning assigned to it;

 

(ii)           an
accounting term not otherwise defined has the meaning assigned to it in
accordance with generally accepted accounting principles as in effect from time
to time;

 

(iii)          “or”
is not exclusive;

 

(iv)          “including”
means including without limitation; and

 

(v)           words in
the singular include the plural and words in the plural include the singular.

 

SECTION 1.4         Action
by or Consent of Noteholders and Certificateholders.  Whenever any provision of this Indenture
refers to action to be taken, or consented to, by Noteholders or
Certificateholders, such provision shall be deemed to refer to the
Certificateholder or Noteholder, as the case may be, of record as of the Record
Date immediately preceding the date on which such action is to be taken, or
consent given, by Noteholders or Certificateholders.  Solely for the purposes of any action to be
taken, or consented to, by Noteholders or Certificateholders, any Note or
Certificate registered in the name of Seller or any Affiliate thereof shall be
deemed not to be Outstanding (except in the event that the Seller and/or an
Affiliate thereof then owns all outstanding Certificates and Outstanding
Notes); provided, however, that, solely for the purpose of determining
whether the Indenture Trustee is entitled to rely upon any such action or
consent, only Notes or Certificates that a Responsible Officer of the Owner
Trustee or the Indenture Trustee, as the case may be, either actually knows to
be so owned or has received written notice thereof shall be so disregarded.

 

7

 

ARTICLE II.

The Notes

 

SECTION 2.1         Form;
Amount Limited; Issuable in Series.

 

(a)           The Notes
shall be in substantially the form set forth in the Series Supplement, with
such appropriate insertions, omissions, substitutions and other variations as
are required or permitted by this Indenture or the Series Supplement and which
do not affect the rights, duties or obligations of the Indenture Trustee or the
Administrator without the consent of the Indenture Trustee or the Administrator,
respectively, and may have such letters, numbers or other marks of
identification and such legends or endorsements placed thereon as may,
consistently herewith, be determined by the officers executing such Notes, as
evidenced by their execution of the Notes. 
Any portion of the text of any Note may be set forth on the reverse
thereof, with an appropriate reference thereto on the face of the Note.

 

The Definitive Notes shall be typewritten, printed,
lithographed or engraved or produced by any combination of these methods (with
or without steel engraved borders), all as determined by the officers executing
such Notes, as evidenced by their execution of such Notes.

 

Each Note shall be dated the date of its
authentication.  The terms of the Notes
set forth in the Series Supplement are part of the terms of this Indenture.

 

(b)           The
aggregate principal amount of Notes which may be authenticated and delivered
and Outstanding at any time under this Indenture is not limited; provided
that the Series Supplement may so limit the aggregate principal amount of
Notes.  The Notes shall be issued in a
series, and may be issued in Classes and/or Tranches within such series (and
Tranches within a Class).

 

No Notes shall be issued under this Indenture unless
such Notes have been authorized pursuant to the Series Supplement, and all
conditions precedent to the issuance thereof, as specified in the Series
Supplement, shall have been satisfied.

 

All Notes issued under this Indenture shall be in all
respects equally and ratably entitled to the benefits hereof and secured by the
Series Trust Estate without preference, priority or distinction on account of
the actual time or times of authentication and delivery, all in accordance with
the terms and provisions hereof and the Series Supplement.

 

SECTION 2.2         Execution,
Authentication and Delivery.  The
Notes shall be executed on behalf of the Issuer by any of its Authorized
Officers.  The signature of any such
Authorized Officer on the Notes may be original or facsimile.

 

Notes bearing the original or facsimile signature of
individuals who were at any time Authorized Officers of the Issuer shall bind
the Issuer, notwithstanding that such individuals or any of them have ceased to
hold such offices prior to the

 

8

 

authentication and delivery of such Notes or did not
hold such offices at the issuance date of such Notes.

 

The Notes shall be issuable in the denominations
specified in the Series Supplement.

 

No Note shall be entitled to any benefit under this
Indenture or the Series Supplement or be valid or obligatory for any purpose,
unless there appears attached to such Note a certificate of authentication,
substantially in the form attached as Exhibit B to the Series Supplement,
executed by the Administrator by the manual signature of one of its authorized
signatories, and such certificate attached to any Note shall be conclusive
evidence, and the only evidence, that such Note has been duly authenticated and
delivered hereunder.

 

SECTION 2.3         Temporary
Notes.  Pending the preparation of
Definitive Notes of any Class or Tranche, the Issuer may execute, and upon
receipt of an Issuer Order prepared and delivered by the Master Servicer, the
Administrator shall authenticate and deliver, temporary Notes which are
printed, lithographed, typewritten, mimeographed or otherwise produced, of the
tenor of the Definitive Notes in lieu of which they are issued and with such
variations not inconsistent with the terms of this Indenture as the officers
executing such Notes may determine, as evidenced by their execution of such
Notes.

 

If temporary Notes of any Class or Tranche are issued,
the Issuer will cause Definitive Notes of such Class or Tranche to be prepared
without unreasonable delay.  After the
preparation of Definitive Notes of such Class or Tranche, the temporary Notes
shall be exchangeable for Definitive Notes of such Class or Tranche upon
surrender of the temporary Notes at the office or agency of the Issuer to be
maintained as provided in Section 3.2, without charge to the Holder.  Upon surrender for cancellation of any one or
more temporary Notes, the Issuer shall execute and, upon receipt of an Issuer
Order, the Administrator shall authenticate and deliver in exchange therefor a
like principal amount of Definitive Notes of such Class or Tranche of
authorized denominations.  Until so
exchanged, the temporary Notes of any Class or Tranche shall in all respects be
entitled to the same benefits under this Indenture and the Series Supplement as
Definitive Notes of such Class or Tranche.

 

SECTION 2.4         Registration;
Registration of Transfer and Exchange. 
The Issuer shall cause to be kept a register (the “Note Register”) in
which, subject to such reasonable regulations as it may prescribe, the Issuer
shall provide for the registration of Notes and the registration of transfers
of Notes.  The Administrator shall be “Note
Registrar” for the purpose of registering Notes and transfers of Notes as
herein provided.  Upon any resignation of
any Note Registrar, the Issuer shall promptly appoint a successor or, if it
elects not to make such an appointment, assume the duties of Note Registrar.

 

If a Person other than the Administrator is appointed
by the Issuer as Note Registrar, the Issuer will give the Indenture Trustee and
the Administrator prompt written notice of the appointment of such Note
Registrar and of the location, and any change in

 

9

 

the location, of the Note Register.  The Indenture Trustee and, if it is no longer
serving as Note Registrar hereunder, the Administrator, shall have the right to
inspect the Note Register at all reasonable times and to obtain copies
thereof.  The Indenture Trustee and the
Administrator shall have the right to rely upon a certificate executed on
behalf of the Note Registrar by an Authorized Officer thereof as to the names
and addresses of the Holders of the Notes and the principal amounts and number
of such Notes.

 

Upon surrender for registration or transfer of any
Note at the office or agency of the Issuer to be maintained as provided in
Section 3.2, and if the requirements of Section 8-401(1) of the UCC are met,
the Issuer shall execute and cause the Administrator to authenticate one or
more new Notes, in any authorized denominations, of the same class and a like
aggregate principal amount.  A Noteholder
may also obtain from the Administrator, in the name of the designated
transferee or transferees one or more new Notes, in any authorized
denominations, of the same Class and Tranche, as applicable, and a like
aggregate principal amount.  Such
requirements shall not be deemed to create a duty in the Administrator, nor
shall the Administrator have any duty, to monitor the compliance by the Issuer
with Section 8-401 of the UCC.

 

At the option of the Holder, Notes of any Class or
Tranche may be exchanged for other Notes of such Class or Tranche in any
authorized denominations of the same Class (and Tranche, if applicable) and a
like aggregate principal amount, upon surrender of the Notes to be exchanged at
such office or agency.  Whenever any
Notes are so surrendered for exchange, and if the requirements of Section
8-401(1) of the UCC are met, the Issuer shall execute and upon its written
request the Administrator shall authenticate the Notes which the Noteholder
making the exchange is entitled to receive. 
Such requirements shall not be deemed to create a duty in the Administrator,
nor shall the Administrator have any duty, to monitor the compliance by the
Issuer with Section 8-401 of the UCC.

 

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

 

Unless specified in the Series Supplement, every Note
presented or surrendered for registration of transfer or exchange shall, unless
specified in the Series Supplement, be (i) duly endorsed by, or be accompanied
by a written instrument of transfer in the form attached as an exhibit to the
Note duly executed by the Holder thereof or such Holder’s attorney duly
authorized in writing, with such signature guaranteed by an “eligible guarantor
institution” meeting the requirements of the Note Registrar which requirements
include membership or participation in Securities Transfer Agents Medallion
Program (“Stamp”) or such other “signature guarantee program” as may be
determined by the Note Registrar in addition to, or in substitution for, Stamp,
all in accordance with the Exchange Act, and (ii) accompanied by such other
documents as the Note Registrar may require.

 

10

 

No service charge shall be made to a Holder for any
registration of transfer or exchange of Notes, but the Note Registrar may
require payment of a sum sufficient to cover any tax or other governmental
charge that may be imposed in connection with any registration of transfer or
exchange of Notes.

 

Notwithstanding, the preceding provisions of this
section, the Issuer shall not be required to make, and the Note Registrar shall
not register, transfers or exchanges of Notes selected for redemption for a
period of 15 days preceding a Distribution Date.

 

The Note Registrar shall not register the transfer of
a Definitive Note unless the transferee has executed and delivered to the Administrator
a certification, in the form of Exhibit A hereto, to the effect that
either (i) the transferee is not (A) an employee benefit plan (within the
meaning of Section 3(3) of the Employee Retirement Income Security Act of 1974,
as amended (“ERISA”)) that is subject to Title I of ERISA or (B) a plan (within
the meaning of Section 4975(e)(1) of the Code) that is subject to Section 4975
of the Code (each of the foregoing, a “Plan”), and is not acting on behalf of
or investing the assets of a Plan or (ii) that the transferee’s acquisition and
continued holding of the Definitive Note will be covered by a prohibited
transaction class exemption issued by the U.S. Department of Labor.  Each Note Owner that purchases a Book-Entry
Note, or to whom a Book-Entry Note is transferred, shall be deemed to represent
that either (i) it is not a Plan and is not acting on behalf of or investing
the assets of a Plan or (ii) its acquisition and continued holding of the
Book-Entry Note will be covered by a prohibited transaction class exemption
issued by the U.S. Department of Labor.

 

No Holder of an Unregistered Note shall transfer its
Note, unless (i) such transfer is made in accordance with Rule 144A under the
Securities Act or (ii) pursuant to an exemption from registration provided by
Rule 144 under the Securities Act (if available) and the registration and
qualification requirements under applicable state securities laws.

 

Each Unregistered Note issued hereunder will contain
the following legend limiting sales to “Qualified Institutional Buyers” within
the meaning of Rule 144A under the Securities Act:

 

THIS NOTE HAS NOT BEEN AND WILL NOT BE REGISTERED
UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), AND HAS NOT BEEN
APPROVED OR DISAPPROVED BY THE SECURITIES AND EXCHANGE COMMISSION OR REGULATORY
AUTHORITY OF ANY STATE.  THIS NOTE HAS
BEEN OFFERED AND SOLD PRIVATELY.  THE
HOLDER HEREOF ACKNOWLEDGES THAT THESE SECURITIES ARE “RESTRICTED SECURITIES” THAT HAVE NOT BEEN
REGISTERED UNDER THE SECURITIES ACT AND AGREES FOR THE BENEFIT OF THE OBLIGORS
AND ITS AFFILIATES THAT THESE SECURITIES MAY NOT BE OFFERED, SOLD, PLEDGED OR
OTHERWISE TRANSFERRED EXCEPT (A) TO A PERSON WHOM

 

11

 

THE SELLER REASONABLY BELIEVES IS A QUALIFIED
INSTITUTIONAL BUYER WITHIN THE MEANING OF RULE 144A UNDER THE SECURITIES ACT IN
A TRANSACTION MEETING THE REQUIREMENTS OF RULE 144A OR (B) PURSUANT TO AN
EXEMPTION FROM REGISTRATION PROVIDED BY RULE 144 UNDER THE SECURITIES ACT (IF
AVAILABLE), IN EACH CASE IN ACCORDANCE WITH ANY APPLICABLE SECURITIES LAWS OF
ANY STATE OF THE UNITED STATES OR ANY OTHER JURISDICTION.

 

SECTION 2.5         Mutilated,
Destroyed, Lost or Stolen Notes.  If
(i) any mutilated Note is surrendered to the Administrator or the Note
Registrar, or the Administrator or the Note Registrar receives evidence to its
satisfaction of the destruction, loss or theft of any Note, and (ii) there
is delivered to each of the Issuer, the Administrator and the Note Registrar
such security or indemnity as may be required by it to hold the Issuer, the
Administrator and the Note Registrar harmless, then, in the absence of notice
to the Issuer, the Administrator or the Note Registrar that such Note has been
acquired by a bona fide purchaser, and provided that the requirements of
Section 8-405 of the UCC are met, the Issuer shall execute and upon its written
request the Administrator shall authenticate and deliver, in exchange for or in
lieu of any such mutilated, destroyed, lost or stolen Note, a replacement Note
of the same Class or Tranche (such requirement shall not be deemed to create a
duty in the Administrator to monitor the compliance by the Issuer with Section
8-405); provided, however, that if any such destroyed, lost or
stolen Note, but not a mutilated Note, shall have become, or within seven days
shall be due and payable, or shall have been called for redemption pursuant to
the terms of the Series Supplement, the Issuer may, instead of issuing a
replacement Note, direct the Administrator, in writing, to pay such destroyed,
lost or stolen Note when so due or payable or upon the redemption date without
surrender thereof.  If, after the
delivery of such replacement Note or payment of a destroyed, lost or stolen
Note pursuant to the proviso in the preceding sentence, a bona fide purchaser
of the original Note in lieu of which such replacement Note was issued presents
for payment such original Note, the Issuer, the Administrator and the Note
Registrar shall be entitled to recover such replacement Note (or such payment)
from the Person to whom it was delivered or any Person taking such replacement
Note from such Person to whom such replacement Note was delivered or any
assignee of such Person, except a bona fide purchaser, and shall be entitled to
recover upon the security or indemnity provided therefor to the extent of any
loss, damage, cost or expense incurred by the Issuer or the Administrator in
connection therewith.

 

Upon the issuance of any replacement Note under this
Section, the Issuer may require the payment by the Holder of such Note of a sum
sufficient to cover any tax or other governmental charge that may be imposed in
relation thereto and any other reasonable expenses (including the fees and
expenses of the Administrator) connected therewith.

 

Every replacement Note issued pursuant to this Section
in replacement of any mutilated, destroyed, lost or stolen Note shall
constitute an original additional

 

12

 

contractual obligation of the Issuer, whether or not
the mutilated, destroyed, lost or stolen Note shall be at any time enforceable
by anyone, and shall be entitled to all the benefits of this Indenture and the
Series Supplement equally and proportionately with any and all other Notes duly
issued hereunder.

 

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

 

SECTION 2.6         Persons
Deemed Owner.  Prior to due
presentment for registration of transfer of any Note, the Issuer, the Indenture
Trustee, the Administrator, the Note Registrar and any agent of any of them may
treat the Person in whose name any Note is registered (as of the Record Date)
as the owner of such Note for the purpose of receiving payments of principal of
and interest, if any on such Note and for all other purposes whatsoever,
whether or not such Note be overdue, and none of the Issuer, the Indenture
Trustee, the Administrator, the Note Registrar or any agent of any of them shall
be affected by notice to the contrary.

 

SECTION 2.7         Payment
of Principal and Interest; Defaulted Interest.

 

(a)           The Notes
shall accrue interest as provided in the form of Note set forth in the Series
Supplement and such interest shall be due and payable on each Distribution Date
as specified therein.  Any installment of
interest or principal, if any, payable on any Note which is punctually or duly
provided for by the Issuer on the applicable Distribution Date shall be paid,
as provided in the Series Supplement, or if not so provided to the Person in
whose name such Note (or one or more Predecessor Notes) is registered on the
Record Date, by check mailed first-class, postage prepaid, to such Person’s
address as it appears on the Note Register on such Record Date, except that, if
the Notes are Book-Entry Notes, unless Definitive Notes have been issued
pursuant to Section 2.12, with respect to Notes registered on the Record Date
in the name of the nominee of the Clearing Agency (initially, such nominee to
be Cede & Co.), payment will be made by wire transfer in immediately
available funds to the account designated by such nominee and except for the
final installment of principal payable with respect to such Note on a
Distribution Date or on the Final Scheduled Distribution Date as set forth in
the Series Supplement which shall be payable as provided below.  The funds represented by any such checks
returned undelivered shall be held in accordance with Section 3.3.

 

(b)           The
principal of each Note shall be payable in installments on each Distribution
Date as provided in the form of Note set forth in the Series Supplement.  Notwithstanding the foregoing, the entire
unpaid principal amount of the Notes shall be due and payable, if not
previously paid, on the date on which an Event of Default shall have occurred
and be continuing, if the Notes are declared to be immediately due and payable
in the manner provided in the Series Supplement.  Upon written notice from the Master Servicer
on behalf of the Issuer, the Administrator shall notify the Person in whose
name a Note is registered at the close of business on the Record Date preceding
the Distribution Date on which the Issuer expects that the final installment of
principal of

 

13

 

and interest on
such Note will be paid.  Such notice may
be mailed or transmitted by facsimile prior to such final Distribution Date and
may specify that such final installment will be payable only upon presentation and
surrender of such Note and shall specify the place where such Note may be
presented and surrendered for payment of such installment.

 

(c)           If the
Issuer defaults in a payment of interest on the Notes, the Issuer shall pay
defaulted interest (plus interest on such defaulted interest to the extent
lawful) at the applicable Note Rate to the extent lawful.  Unless otherwise provided in the Series
Supplement, the Issuer may pay such defaulted interest to the Persons who are
Noteholders on a subsequent special record date, which date shall be at least
five Business Days prior to the payment date. 
The Issuer shall fix or cause to be fixed any such special record date
and payment date, and, at least 15 days before any such special record date,
the Issuer shall mail to each Noteholder, the Indenture Trustee and the
Administrator a notice that states the special record date, the payment date
and the amount of defaulted interest to be paid.

 

SECTION 2.8         Cancellation.  All Notes surrendered for payment,
registration of transfer, exchange or redemption shall, if surrendered to any
Person other than the Administrator, be delivered to the Note Registrar and
shall be promptly canceled by the Note Registrar in accordance with its
customary procedures.  The Issuer may at
any time deliver to the Note Registrar for cancellation any Notes previously
authenticated and delivered hereunder which the Issuer may have acquired in any
manner whatsoever, and all Notes so delivered shall be promptly canceled by the
Note Registrar in accordance with its customary procedures.  No Notes shall be authenticated in lieu of or
in exchange for any Notes canceled as provided in this Section, except as
expressly permitted by this Indenture. 
All canceled Notes may be held or disposed of by the Note Registrar in
accordance with its standard retention or disposal policy as in effect at the
time.

 

SECTION 2.9         Reserved.

 

SECTION 2.10       Book-Entry
Notes.  The Notes, upon original
issuance, may be issued in the form of typewritten Notes representing the
Book-Entry Notes, to be delivered to The Depository Trust Company or its agent,
the initial Clearing Agency, by, or on behalf of, the Issuer.  Such Notes may initially be registered on the
Note Register in the name of Cede & Co., the nominee of the initial
Clearing Agency, and no Note Owner will receive a Definitive Note representing
such Note Owner’s interest in such Note, except as provided in Section
2.12.  Unless and until definitive, fully
registered Notes (the “Definitive Notes”) have been issued to Note Owners
pursuant to Section 2.12:

 

(i)            the
provisions of this Section shall be in full force and effect;

 

(ii)           the Note
Registrar, the Indenture Trustee and the Administrator shall be entitled to
deal with the Clearing Agency for all purposes of this Indenture (including the
payment of principal of and interest on the Notes and the giving of
instructions or directions hereunder) as the sole Holder of the Notes, and
shall have no obligation to the Note Owners;

 

14

 

(iii)          to
the extent that the provisions of this Section conflict with any other
provisions of this Indenture, the provisions of this Section shall control;

 

(iv)          the rights
of Note Owners shall be exercised only through the Clearing Agency and shall be
limited to those established by law and agreements between such Note Owners and
the Clearing Agency and/or the Clearing Agency Participants.  Unless and until Definitive Notes are issued
pursuant to Section 2.12, the initial Clearing Agency will make book-entry
transfers among the Clearing Agency Participants and receive and transmit
payments of principal of and interest on the Notes to such Clearing Agency
Participants;

 

(v)           whenever
this Indenture requires or permits actions to be taken based upon instructions
or directions of Holders of Notes evidencing a specified percentage of the
Outstanding Amount of the Notes, the Clearing Agency shall be deemed to
represent such percentage only to the extent that it has received instructions
to such effect from Note Owners and/or Clearing Agency Participants owning or
representing, respectively, such required percentage of the beneficial interest
in the Notes or in the Notes of a Class, as the case maybe, and has delivered
such instructions to the Indenture Trustee and/or the Administrator, as the
case may be; and

 

(vi)          Note Owners
may receive copies of any reports sent to Noteholders pursuant to this
Indenture, upon written request, together with a certification that they are
Note Owners and payment of reproduction and postage expenses associated with
the distribution of such reports, from the Administrator at the Corporate Trust
Office or, if applicable, on the Administrator’s web-site specified in the
Series Supplement.

 

SECTION 2.11       Notices
to Clearing Agency.  With respect to
any Notes which are Book Entry Notes, whenever a notice or other communication
to the Noteholders is required under this Indenture, unless and until
Definitive Notes shall have been issued to Note Owners pursuant to Section
2.12, the Indenture Trustee or the Administrator, as the case may be, shall
give all such notices and communications specified herein to be given to
Holders of the Notes to the Clearing Agency, and shall have no obligation to
the Note Owners.

 

SECTION 2.12       Definitive
Notes.  If any Notes are Book-Entry
Notes and if (i) the Master Servicer advises the Indenture Trustee and the
Administrator in writing that the Clearing Agency is no longer willing or able
to properly discharge its responsibilities with respect to such Notes, and the
Master Servicer is unable to locate a qualified successor, (ii) the Master
Servicer at its option advises the Indenture Trustee and the Administrator in
writing that it elects to terminate the book-entry system through the Clearing
Agency or (iii) after the occurrence of an Event of Default, Note Owners
representing beneficial interests aggregating at least a majority of the
Outstanding Amount of the Notes advise the Indenture Trustee through the
Clearing Agency in writing that the continuation of a book entry system through
the Clearing Agency is no longer in the best interests of the Note Owners, then
the Administrator, in the case of (i)

 

15

 

and (ii), and the Indenture Trustee, in the case of
(iii), shall notify all Note Owners, the Master Servicer, the Indenture Trustee
and the Administrator of the occurrence of any such event and of the
availability of Definitive Notes to Note Owners requesting the same.  Upon surrender to the Administrator of the
typewritten Note or Notes representing the Book-Entry Notes by the Clearing
Agency, accompanied by registration instructions, the Issuer shall execute, and
upon the written direction of the Issuer the Administrator shall authenticate,
the Definitive Notes in accordance with the instructions of the Clearing
Agency.  None of the Issuer, the Note
Registrar, the Indenture Trustee or the Administrator shall be liable for any
delay in delivery of such instructions and may conclusively rely on, and shall
be protected in relying on, such instructions. 
Upon the issuance of Definitive Notes, the Indenture Trustee, the
Administrator and the Note Registrar shall recognize the Holders of the
Definitive Notes as Noteholders.

 

SECTION 2.13       Final
Distribution.

 

(a)           The Master
Servicer on behalf of the Issuer shall give the Indenture Trustee and the
Administrator at least 15 days prior written notice of the Distribution Date
(or other date) on which the Noteholders of any Class may surrender their Notes
for payment of the final distribution on and cancellation of such Notes.  Not later than the fifth day of the month in
which the final distribution in respect of such Class is payable to
Noteholders, the Administrator shall provide notice to the Noteholders of such
Class specifying (i) the date upon which final payment of such Class will
be made upon presentation and surrender of Notes (if required) of such Class at
the office or offices therein designated, (ii) the amount of any such
final payment and (iii) that the Record Date otherwise applicable to such
payment date is not applicable, payments being made only upon presentation and
surrender of such Notes at the office or offices therein specified.  Unless it is serving in the related
functions, the Administrator shall give such notice to the Note Registrar and
the Note Paying Agent at the time such notice is given to Noteholders.

 

(b)           Notwithstanding
a final distribution to the Noteholders of any Class, except as otherwise
provided in this paragraph, all funds then on deposit in the Collection Account
and the Trust Accounts shall continue to be held in trust for the benefit of
such Noteholders, and the Note Paying Agent or the Administrator shall pay such
funds to such Noteholders upon surrender of their Notes.  In the event that all such Noteholders shall
not surrender their Notes for cancellation within six months after the date
specified in the notice from the Administrator described in paragraph (a), the Administrator
shall give a second notice to the remaining such Noteholders to surrender their
Notes for cancellation and receive the final distribution with respect
thereto.  If within one year after the
second notice all such Notes shall not have been surrendered for cancellation,
the Administrator may take appropriate steps, or may appoint an agent to take
appropriate steps, to contact the remaining such Noteholders concerning
surrender of their Notes, and the cost thereof shall be paid out of the funds
in the account held for the benefit of such Noteholders.  The Administrator and the Note Paying Agent
shall upon written request pay to the Issuer any moneys held by them for the
payment of principal or interest that remains unclaimed for two years.  After payment to the Issuer, Noteholders
entitled to such monies must look to the Issuer for payment as general
unsecured

 

16

 

creditors unless
an applicable abandoned property law designates another Person, the Indenture
Trustee, the Administrator or such Note Paying Agent with respect to such trust
monies.

 

(c)           Any notice
required or permitted to be given to a Holder of Registered Notes shall be
given by first-class mail, postage prepaid, at the address of such Holder as
shown in the Note Register.

 

ARTICLE III.

Covenants

 

SECTION 3.1         Payment
of Principal and Interest.  The
Issuer will duly and punctually pay or cause to be paid the principal of and
interest on the Notes in accordance with the terms of the Notes, this Indenture
and the Series Supplement.  Amounts
properly withheld under the Code by any Person from a payment to any Noteholder
of interest and/or principal shall be considered as having been paid by the
Issuer to such Noteholder for all purposes of this Indenture.

 

SECTION 3.2         Maintenance
of Office or Agency.  The Issuer will
maintain an office or agency where Notes may be surrendered for registration,
transfer or exchange of the Notes, and where notices and demands to or upon the
Issuer in respect of the Notes and this Indenture may be served.  The Issuer hereby initially appoints the Administrator
to serve as its agent for the foregoing purposes.  The Issuer will give prompt written notice to
the Indenture Trustee and the Administrator of the location, and of any change
in the location, of any such office or agency. 
If at any time the Issuer shall fail to maintain any such office or
agency or shall fail to furnish the Indenture Trustee or the Administrator with
the address thereof, such surrenders, notices and demands may be made or served
at the Corporate Trust Office of the Administrator, and the Issuer hereby
appoints the Administrator as its agent to receive all such surrenders, notices
and demands.

 

SECTION 3.3         Money
for Payments to be Held in Trust. 
One Business Day prior to each Distribution Date, the Issuer shall
deposit or cause to be deposited to the Collection Account Available Funds
(which shall be immediately available) with respect to the related Collection
Period.  Such sum shall be held in trust
for the benefit of the Persons entitled thereto and (unless the Note Paying
Agent is the Administrator), the Issuer shall promptly notify the Administrator
of its action or failure so to act.

 

The Issuer hereby appoints the Person serving as Administrator
as Note Paying Agent to make payments to Noteholders on behalf of the Issuer in
accordance with the provisions of the Notes, this Indenture and the Series
Supplement, and such Person hereby accepts such appointment (subject to removal
in the event it no longer serves as Administrator pursuant to Section 6.18).

 

The Issuer will cause each Note Paying Agent other
than the Indenture Trustee or the Administrator to execute and deliver to the Indenture
Trustee an

 

17

 

instrument in which such Note Paying Agent shall agree
with the Indenture Trustee (and if the Indenture Trustee or the Administrator acts
as Note Paying Agent with respect to clauses (i) and (v), it hereby so agrees),
subject to the provisions of this Section, that such Note Paying Agent will:

 

(i)            hold all
sums held by it for the payment of amounts due with respect to the Notes in
trust for the benefit of the Persons entitled thereto until such sums shall be
paid to such Persons or otherwise disposed of as herein provided and pay such
sums to such Persons as herein provided;

 

(ii)           give the
Indenture Trustee written notice of any default by the Issuer of which a
Responsible Officer of the Note Paying Agent has actual knowledge (or any other
obligor upon the Notes) in the making of any payment required to be made with
respect to the Notes;

 

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

 

(iv)          immediately
resign as a Note Paying Agent and forthwith pay to the Indenture Trustee all
sums held by it in trust for the payment of Notes if at any time it ceases to
meet the standards required to be met by a Note Paying Agent at the time of its
appointment; and

 

(v)           comply
with all requirements of the Code with respect to the withholding from any
payments made by it on any Notes of any applicable withholding taxes imposed
thereon and with respect to any applicable reporting requirements in connection
therewith.

 

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

 

The Issuer hereby appoints the Person serving as Administrator,
as Certificate Paying Agent to make payments to Certificateholders on behalf of
the Issuer in accordance with the provisions of the Certificates, this Indenture
and the Trust Agreement, and such Person hereby accepts such appointment
(subject to removal in the event it no longer serves as Administrator pursuant
to Section 6.18) and further agrees that it will be bound by the
provisions of the Trust Agreement relating to the Certificate Paying Agent and
will:

 

(i)            hold all
sums held by it for the payment of amounts due with respect to the Certificates
in trust for the benefit of the Persons entitled thereto until such sums shall
be paid to such Persons or otherwise disposed of as herein

 

18

 

provided and as
provided in the Trust Agreement and pay such sums to such Persons as herein and
therein provided;

 

(ii)           give the
Owner Trustee notice of any default by the Issuer of which a Responsible
Officer of the Certificate Paying Agent has actual knowledge in the making of
any payment required to be made with respect to the Certificates;

 

(iii)          at
any time during the continuance of any such default, upon the written request
of the Owner Trustee forthwith pay to the Owner Trustee on behalf of the Issuer
all sums so held in Trust by such Certificate Paying Agent;

 

(iv)          immediately
resign as a Certificate Paying Agent and forthwith pay to the Owner Trustee on
behalf of the Issuer all sums held by it in trust for the payment of
Certificates if at any time it ceases to meet the standards required to be met
by a Note Paying Agent at the time of its appointment; and

 

(v)           comply
with all requirements of the Code with respect to the withholding from any
payments made by it on any Certificates of any applicable withholding taxes
imposed thereon and with respect to any applicable reporting requirements in
connection therewith.

 

SECTION 3.4         Existence.  Except as otherwise permitted by the
provisions of Section 3.10, the Issuer will keep in full effect its existence,
rights and franchises as a statutory trust under the laws of the State of
Delaware (unless it becomes, or any successor Issuer hereunder is or becomes,
organized under the laws of any other state or of the United States of America,
in which case the Issuer will keep in full effect its existence, rights and
franchises under the laws of such other jurisdiction) and will obtain and
preserve its qualification to do business in each jurisdiction in which such
qualification is or shall be necessary to protect the validity and
enforceability of this Indenture, the Series Supplement, the Notes and each
other instrument or agreement included in the Series Trust Estate.

 

SECTION 3.5         Protection
of Series Trust Estate.  The Issuer
intends the security interest Granted pursuant to this Indenture and the Series
Supplement in favor of the Secured Parties to be prior to all other liens in
respect of the Series Trust Estate, and the Issuer shall take all actions
necessary to obtain and maintain, in favor of the Indenture Trustee for the
benefit of the Secured Parties a first lien on and a first priority, perfected
security interest in the Series Trust Estate. 
The Issuer will: (a) from time to time prepare (or shall cause to be
prepared), execute and deliver all such supplements and amendments hereto and
all such financing statements, continuation statements, instruments of further
assurance and other instruments, (b) authenticate such records, and (c) take
such other action necessary or advisable to:

 

(i)            Grant
more effectively all or any portion of the Series Trust Estate;

 

19

 

(ii)           maintain
or preserve the lien and security interest (and the priority thereof) in favor
of the Indenture Trustee for the benefit of the Secured Parties created by this
Indenture and the Series Supplement or carry out more effectively the purposes
hereof;

 

(iii)          perfect,
publish notice of or protect the validity of any Grant made or to be made by
this Indenture and the Series Supplement;

 

(iv)          enforce any
of the Series Trust Estate;

 

(v)           preserve
and defend title to the Series Trust Estate and the rights of the Indenture
Trustee in such Series Trust Estate against the claims of all persons and
parties; and

 

(vi)          pay all
taxes or assessments levied or assessed upon the Series Trust Estate when due.

 

SECTION 3.6         Opinions
as to Series Trust Estate.

 

(a)           On the
Closing Date, the Issuer shall furnish to the Indenture Trustee an Opinion of
Counsel either stating that, in the opinion of such counsel, such action has
been taken with respect to the recording and filing of this Indenture, the
Series Supplement, and any other requisite documents, and with respect to the
execution and filing of any financing statements and continuation statements,
as are necessary to perfect and make effective the first priority lien and
security interest in favor of the Indenture Trustee for the benefit of the
Secured Parties, created by this Indenture and the Series Supplement and
reciting the details of such action, or stating that, in the opinion of such
counsel, no such action is necessary to make such perfected lien and security
interest effective.

 

(b)           On or
before March 31 of each year, beginning with March 31, 2006, the Master
Servicer on behalf of the Issuer shall furnish to the Indenture Trustee an
Opinion of Counsel either stating that, in the opinion of such counsel, such
action has been taken with respect to the recording, filing, re-recording and
refiling of this Indenture, the Series Supplement and any other requisite
documents, with respect to the execution and filing of any financing statements
and continuation statements, and with respect to the authentication of such
records as are necessary to maintain the lien and security interest created by
this Indenture and the Series Supplement and reciting the details of such
action or stating that in the opinion of such counsel no such action is
necessary to maintain such lien and security interest.  Such Opinion of Counsel shall also describe
the recording, filing, re-recording and refiling of this Indenture, any
indentures supplemental hereto and any other requisite documents, the execution
and filing of any financing statements and continuation statements and the
authentication of such records that will, in the opinion of such counsel, be
required to maintain the lien and security interest of this Indenture and the
Series Supplement until March 31 of the following year.

 

20

 

SECTION 3.7         Performance
of Obligations; Servicing of Receivables.

 

(a)           The Issuer
will not take any action and will use its best efforts not to permit any action
to be taken by others that would release any Person from any of such Person’s
material covenants or obligations under any instrument or agreement included in
the Series Trust Estate or that would result in the amendment, hypothecation,
subordination, termination or discharge of, or impair the validity or
effectiveness of, any such instrument or agreement, except as ordered by any
bankruptcy or other court or as expressly provided in this Indenture and the
Basic Documents or such other instrument or agreement.

 

(b)           The Issuer
has contracted with the Master Servicer to assist the Issuer in performing its
duties under this Indenture and the Series Supplement.  The Issuer may contract with Persons other
than the Master Servicer to assist it in performing its duties under this
Indenture and the Series Supplement, and any performance of such duties by a
Person identified to the Indenture Trustee in an Officer’s Certificate of the
Issuer shall be deemed to be action taken by the Issuer.

 

(c)           The Issuer
will punctually perform and observe all of its obligations and agreements contained
in this Indenture and the Basic Documents and in the instruments and agreements
included in the Series Trust Estate, including, but not limited, to preparing
(or causing to be prepared) and filing (or causing to be filed) all UCC
financing statements and continuation statements required to be filed by the
terms of this Indenture, the Series Supplement and the Master Sale and
Servicing Agreement in accordance with and within the time periods provided for
herein and therein.  Except as otherwise
expressly provided therein, the Issuer shall not waive, amend, modify,
supplement or terminate any Basic Document or any provision thereof without the
consent of the Indenture Trustee.

 

(d)           If a
Responsible Officer of the Owner Trustee shall have actual knowledge of the
occurrence of a Master Servicer Termination Event under the Master Sale and
Servicing Agreement, the Issuer shall promptly notify the Indenture Trustee,
the Administrator and the Rating Agencies thereof in accordance with Section
11.4, and shall specify in such notice the action, if any, the Issuer is taking
in respect of such default.  If a Master
Servicer Termination Event shall arise from the failure of the Master Servicer
to perform any of its duties or obligations under the Master Sale and Servicing
Agreement with respect to the Receivables, the Issuer shall take all reasonable
steps available to it to remedy such failure.

 

SECTION 3.8         Negative
Covenants.  So long as any Notes are
Outstanding, the Issuer shall not:

 

(i)            except as
expressly permitted by this Indenture or the Basic Documents, sell, transfer,
exchange or otherwise dispose of any of the properties or assets of the Issuer,
including those included in the Series Trust Estate;

 

21

 

(ii)           claim any
credit on, or make any deduction from the principal or interest payable in
respect of, the Notes of a Series (other than amounts properly withheld from
such payments under the Code) or assert any claim against any present or former
Noteholder by reason of the payment of the taxes levied or assessed upon any
part of the Series Trust Estate; or

 

(iii)          (A)
permit the validity or effectiveness of this Indenture or the Series Supplement
to be impaired, or permit the lien in favor of the Indenture Trustee created by
this Indenture to be amended, hypothecated, subordinated, terminated or
discharged, or permit any Person to be released from any covenants or
obligations with respect to the Notes under this Indenture or the Series
Supplement except as may be expressly permitted hereby, (B) permit any lien,
charge, excise, claim, security interest, mortgage or other encumbrance (other
than the lien of this Indenture and the Series Supplement) to be created on or
extend to or otherwise arise upon or burden the Series Trust Estate or any part
thereof or any interest therein or the proceeds thereof (other than tax liens,
mechanics’ liens and other liens that arise by operation of law, in each case
on a Financed Vehicle and arising solely as a result of an action or omission
of the related Obligor), (C) permit the lien of this Indenture and the Series
Supplement not to constitute a valid first priority (other than with respect to
any such tax, mechanics’ or other lien) security interest in the Series Trust
Estate, (D) except as expressly permitted therein, amend, modify or fail to
comply with the provisions of the Basic Documents or (E) except as
expressly permitted therein, amend, modify or fail to comply with the
provisions of the Related Documents.

 

SECTION 3.9         Annual
Statement as to Compliance.  The
Master Servicer on behalf of the Issuer will deliver to the Indenture Trustee, on
or before March 31 of each year (commencing with March 31, 2006), and otherwise
in compliance with the requirements of TIA Section 314(a)(4) an Officer’s
Certificate stating, as to the Authorized Officer signing such Officer’s
Certificate, that

 

(i)            a review
of the activities of the Issuer during such year and of performance under this
Indenture has been made under such Authorized Officer’s supervision; and

 

(ii)           to the
best of such Authorized Officer’s knowledge, based on such review, the Issuer
has complied with all conditions and covenants under this Indenture and the
Series Supplement throughout such year, or, if there has been a default in the
compliance of any such condition or covenant, specifying each such default
known to such Authorized Officer and the nature and status thereof.

 

SECTION 3.10       Issuer
May Consolidate, Etc. Only on Certain Terms.

 

(a)           The Issuer
shall not consolidate or merge with or into any other Person, unless

 

22

 

(i)            the
Person (if other than the Issuer) formed by or surviving such consolidation or
merger shall be a Person organized and existing under the laws of the United
States of America or any State and shall expressly assume, by an indenture
supplemental hereto, executed and delivered to the Indenture Trustee and the
Administrator, in form satisfactory to the Indenture Trustee and the
Administrator, the due and punctual payment of the principal of and interest on
all Notes and the performance or observance of every agreement and covenant of
this Indenture and the Series Supplement on the part of the Issuer to be
performed or observed, all as provided herein;

 

(ii)           immediately
after giving effect to such transaction, no Default or Event of Default shall
have occurred and be continuing under the Series Supplement;

 

(iii)          the
Rating Agency Condition shall have been satisfied with respect to such
transaction;

 

(iv)          the Issuer
shall have received an Opinion of Counsel (and shall have delivered copies thereof
to the Indenture Trustee and the Owner Trustee) to the effect that such
transaction will not cause the Trust to be treated as an association or
publicly traded partnership taxable as a corporation for federal income tax
purposes, or cause the Notes to fail to qualify as debt for federal income tax
purposes;

 

(v)           any action
as is necessary to maintain the lien and security interest created by this
Indenture and the Series Supplement shall have been taken;

 

(vi)          the Issuer
shall have delivered to the Indenture Trustee an Officer’s Certificate and an
Opinion of Counsel each stating that such consolidation or merger comply with
this Article III and that all conditions precedent herein provided for relating
to such transaction have been complied with (including any filing required by
the Exchange Act); and

 

(b)           The Issuer
shall not convey or transfer all or substantially all of its properties or
assets, including those included in the Series Trust Estate, to any Person,
unless

 

(i)            the
Person that acquires by conveyance or transfer the properties and assets of the
Issuer the conveyance or transfer of which is hereby restricted shall (A) be a
United States citizen or a Person organized and existing under the laws of the
United States of America or any state, (B) expressly assume, by an indenture
supplemental hereto, executed and delivered to the Indenture Trustee, in form
satisfactory to the Indenture Trustee, the due and punctual payment of the
principal of and interest on all Notes and the performance or observance of
every agreement and covenant of this Indenture, the Series Supplement, each of
the Basic Documents and each of the Related Documents on

 

23

 

the part of the
Issuer to be performed or observed, all as provided herein, (C) expressly agree
by means of such Indenture Supplement that all right, title and interest so
conveyed or transferred shall be subject and subordinate to the rights of
Holders of the Notes, (D) unless otherwise provided in such Series Supplement,
expressly agree to indemnify, defend and hold harmless the Issuer against and
from any loss, liability or expense arising under or related to this Indenture,
the Series Supplement and the Notes and (E) expressly agree by means of such
Series Supplement that such Person (or if a group of persons, then one
specified Person) shall prepare (or cause to be prepared) and make all filings
with the Commission (and any other appropriate Person) required by the Exchange
Act in connection with the Notes;

 

(ii)           immediately
after giving effect to such transaction, no Default or Event of Default shall
have occurred and be continuing under the Series Supplement;

 

(iii)          the
Rating Agency Condition shall have been satisfied with respect to such
transaction;

 

(iv)          the Issuer
shall have received an Opinion of Counsel (and shall have delivered copies
thereof to the Indenture Trustee) to the effect that such transaction will not cause
the Trust to be treated as an association or publicly traded partnership
taxable as a corporation for federal income tax purposes, or cause the Notes to
fail to qualify as debt for federal income tax purposes;

 

(v)           any action
as is necessary to maintain the lien and security interest created by this
Indenture and the Series Supplement shall have been taken; and

 

(vi)          the Issuer
shall have delivered to the Indenture Trustee an Officers’ Certificate and an
Opinion of Counsel each stating that such conveyance or transfer and such
Indenture Supplement complies with this Article III and that all conditions
precedent herein provided for relating to such transaction have been complied
with (including any filing required by the Exchange Act).

 

SECTION 3.11       Successor
or Transferee.

 

(a)           Upon any
consolidation or merger of the Issuer in accordance with Section 3.10(a), the
Person formed by or surviving such consolidation or merger (if other than the
Issuer) shall succeed to, and be substituted for, and may exercise every right
and power of, the Issuer under this Indenture and the Series Supplement with
the same effect as if such Person had been named as Issuer herein.

 

(b)           Upon a
conveyance or transfer of all the assets and properties of the Issuer pursuant
to Section 3.10(b), HSBC Automotive Trust 2005-3 will be released from every
covenant and agreement of this Indenture and the Series Supplement to be
observed or performed on the part of the Issuer with respect to the Notes
immediately

 

24

 

upon the delivery
of written notice to the Indenture Trustee stating that HSBC Automotive Trust 2005-3
is to be so released.

 

SECTION 3.12       No
Other Business.  The Issuer shall not
engage in any business other than financing, purchasing, owning, selling and
managing the Receivables, entering and maintaining any ancillary agreement
related to issuance of the Notes and owning the Class SV Preferred Stock of the
Seller in the manner contemplated by this Indenture, the Basic Documents and the
Series Supplement and all Related Documents and activities incidental thereto.

 

SECTION 3.13       No
Borrowing.  The Issuer shall not
issue, incur, assume, guarantee or otherwise become liable, directly or
indirectly, for any Indebtedness except for (i) the Notes, (ii) obligations
owing from time to time to a Series Support Provider under the related
agreement regarding Series Support, if any and (iii) any other Indebtedness
permitted by or arising under the Basic Documents and the Series Supplement.  The proceeds of the Notes and the
Certificates of a Series shall be used exclusively to fund the Issuer’s
purchase of the Receivables of such Series, or to obtain release of the lien
relating to the pledge of the Receivables for a prior series of notes issued by
the Issuer, the purchase of related property of the Series Trust Estate, to
fund any trust account and to pay the Issuer’s organizational, transactional
and start-up expenses.

 

SECTION 3.14       Master
Servicer’s Obligations.  The Issuer
shall enforce the provisions of Sections 4.9, 4.10 and 4.11 of the Master Sale
and Servicing Agreement with respect to the duties of Master Servicer
thereunder.

 

SECTION 3.15       Guarantees,
Loans, Advances and Other Liabilities. 
Except as contemplated by the Master Sale and Servicing Agreement or
this Indenture or the Series Supplement, the Issuer shall not make any loan or
advance or credit to, or guarantee (directly or indirectly or by an instrument
having the effect of assuring another’s payment or performance on any
obligation or capability of so doing or otherwise), endorse or otherwise become
contingently liable, directly or indirectly, in connection with the
obligations, stocks or dividends of, or own, purchase, repurchase or acquire
(or agree continently to do so) any stock, obligations, assets or securities
of, or any other interest in, or make any capital contribution to, any other
Person.

 

SECTION 3.16       Capital
Expenditures.  The Issuer shall not
make any expenditure (by long-term or operating lease or otherwise) for capital
assets (either realty or personalty).

 

SECTION 3.17       Compliance
with Laws.  The Issuer shall comply
with the requirements of all applicable laws, the non-compliance with which
would, individually or in the aggregate, materially and adversely affect the ability
of the Issuer to perform its obligations under the Notes, this Indenture, or
any Basic Document, the Series Supplement or any Related Document.

 

25

 

SECTION 3.18       Restricted
Payments.  The Issuer shall not,
directly or indirectly, (i) pay any dividend or make any distribution (by
reduction of capital or otherwise), whether in cash, property, securities or a
combination thereof, to the Owner Trustee or any owner of a beneficial interest
in the Issuer or otherwise with respect to any ownership or equity interest or
security in or of the Issuer or to the Seller, (ii) redeem, purchase, retire or
otherwise acquire for value any such ownership or equity interest or security
or (iii) set aside or otherwise segregate any amounts for any such purpose; provided,
however, that the Issuer may make, or cause to be made, distributions to
the Seller, the Master Servicer, the Owner Trustee, the Indenture Trustee, the
Administrator and the Certificateholders as permitted by, and to the extent
funds are available for such purpose under, the Master Sale and Servicing
Agreement or Trust Agreement.  The Issuer
will not, directly or indirectly, make payments to or distributions from the
Collection Account except in accordance with this Indenture, the Basic
Documents, the Series Supplement or any Related Document.

 

SECTION 3.19       Notice
of Events of Default.  Upon a
Responsible Officer of the Owner Trustee having actual knowledge thereof, the
Issuer agrees to give the Indenture Trustee, the Administrator and the Rating
Agencies prompt written notice of each Event of Default under the Series
Supplement and each default on the part of the Master Servicer or the Seller of
its obligations under the Master Sale and Servicing Agreement.

 

SECTION 3.20       Further
Instruments and Acts.  Upon request
of the Indenture Trustee or the Administrator, as the case may be, the Issuer
will execute and deliver such further instruments and do such further acts as
may be reasonably necessary or proper to carry out more effectively the purpose
of this Indenture.

 

SECTION 3.21       Amendments
of Master Sale and Servicing Agreement and Trust Agreement.  The Issuer shall not agree to any amendment
to Section 13.1 of the Master Sale and Servicing Agreement or Section 11.1 of
the Trust Agreement to eliminate the requirements thereunder that the Indenture
Trustee, the Administrator or the Holders of the Notes consent to amendments
thereto as provided therein.

 

SECTION 3.22       Income Tax Characterization.  For purposes of federal income, state and
local income and franchise and any other income taxes, the Issuer, the
Noteholders and the Certificateholders will treat the Notes as indebtedness and
hereby instruct the Indenture Trustee to treat the Notes as indebtedness for
federal and state tax reporting purposes.

 

ARTICLE IV.

Satisfaction and Discharge

 

SECTION 4.1         Satisfaction
and Discharge of Indenture.  This
Indenture shall cease to be of further effect with respect to the Notes except
as to (i) rights of registration of transfer and exchange, (ii) substitution of
mutilated, destroyed, lost or stolen Notes, (iii) rights of Noteholders to
receive payments of principal thereof and

 

26

 

interest thereon, (iv) Sections 3.3, 3.4, 3.5, 3.8,
3.10, 3.12, 3.13, 3.20, 3.21 and 3.22, (v) the rights and immunities of the
Indenture Trustee and the Administrator hereunder (including the rights of the
Indenture Trustee and the Administrator under Section 6.7 and Section 6.17 and
the obligations of the Indenture Trustee and the Administrator under Section
4.2) and (vi) the rights of the Secured Parties as beneficiaries hereof with
respect to the Series Trust Estate so deposited with the Indenture Trustee or
the Administrator payable to all or any of them, and the Indenture Trustee, on
written demand of and at the expense of the Issuer, shall execute proper
instruments acknowledging satisfaction and discharge of this Indenture with
respect to the Notes, when either

 

(1)           all Notes
theretofore authenticated and delivered (other than (i) Notes that have been
destroyed, lost or stolen and that have been replaced or paid as provided in
Section 2.5 and (ii) Notes for whose payment money has theretofore been
deposited in trust or segregated and held in trust by the Issuer and thereafter
repaid to the Issuer or discharged from such trust, as provided in Section 3.3)
have been delivered to the Note Registrar for cancellation and the Series
Support, if any, has been returned to the Series Support Provider; or

 

(2)           all Notes
not theretofore delivered to the Note Registrar for cancellation

 

(i)            have
become due and payable,

 

(ii)           will
become due and payable at their respective Final Scheduled Distribution Dates
within one year, or

 

(iii)          are
to be called for redemption within one year under arrangements satisfactory to
the Indenture Trustee and the Administrator for the giving of notice of
redemption by the Administrator, upon the instructions of the Master Servicer
or the Indenture Trustee, as the case may be, in the name, and at the expense,
of the Issuer,

 

and the Issuer, in the
case of (i), (ii) or (iii) above, has irrevocably deposited or caused to be
irrevocably deposited with the Administrator cash or direct obligations of or
obligations guaranteed by the United States of America (which will mature prior
to the date such amounts are payable), in trust for such purpose, in an amount
sufficient to pay and discharge the entire indebtedness on such Notes not
theretofore delivered to the Administrator for cancellation when due on the
Final Scheduled Distribution Date or tender date (if Notes shall have been
called for redemption or tender pursuant to the Series Supplement), as the case
may be.

 

SECTION 4.2         Application
of Trust Money.  All monies deposited
with the Indenture Trustee and/or the Administrator pursuant to Section 4.1
hereof shall

 

27

 

be held in trust and applied by it, in accordance with
the provisions of the Notes, this Indenture and the Series Supplement, to the
payment, either directly or through any Note Paying Agent, as the Indenture
Trustee and/or the Administrator, as the case may be, may determine, to the
Secured Parties for the payment or redemption of which such monies have been
deposited with the Indenture Trustee and/or the Administrator, as the case may
be, of all sums due and to become due thereon for principal and interest; but
such monies need not be segregated from other funds except to the extent
required herein or in the Master Sale and Servicing Agreement or required by
law.

 

SECTION 4.3         Repayment
of Monies Held by Note Paying Agent. 
In connection with the satisfaction and discharge of this Indenture with
respect to the Notes, all monies then held by any Note Paying Agent under the
provisions of this Indenture with respect to such Notes shall, upon demand of
the Issuer, be paid to the Administrator on behalf of the Indenture Trustee to
be held and applied according to Section 3.3 and thereupon such Note Paying
Agent shall be released from all further liability with respect to such monies.

 

ARTICLE V.

Remedies

 

SECTION 5.1         Events
of Default.  The definition of “Event
of Default” with respect to a Series, together with certain rights and remedies
consequent thereto, shall be set forth in the Series Supplement.

 

SECTION 5.2         Collection
of Indebtedness and Suits for Enforcement by Indenture Trustee.

 

(a)           Subject to
the terms of the Series Supplement, the Issuer covenants that if (i) default is
made in the payment of any interest on any Note when the same becomes due and
payable, and such default continues for a period of five days, or (ii) default
is made in the payment of the principal of or any installment of the principal
of any Note when the same becomes due and payable, and such default continues
for a period of five days, the Issuer will, upon demand of the Indenture
Trustee, pay to it or the Administrator, for the benefit of the Secured
Parties, the whole amount then due and payable on such Notes for principal and
interest, with interest upon the overdue principal, and, to the extent payment
at such rate of interest shall be legally enforceable, upon overdue
installments of interest, at the applicable Note Rate and in addition thereto
such further amount as shall be sufficient to cover the costs and expenses of
collection, including the reasonable compensation, expenses, disbursements and
advances of the Indenture Trustee and its agents and outside counsel.

 

(b)           If an
Event of Default occurs and is continuing with respect to a Series, the Indenture
Trustee may in its discretion proceed to protect and enforce the rights of the
Secured Parties by such appropriate Proceedings as the Indenture Trustee shall
deem most effective to protect and enforce any such rights, whether for the
specific enforcement of any covenant or agreement in this Indenture or the
Series Supplement or

 

28

 

in aid of the
exercise of any power granted herein, or to enforce any other proper remedy or
legal or equitable right vested in the Indenture Trustee by this Indenture, the
Series Supplement or by law.

 

(c)           In case
there shall be pending, relative to the Issuer or any other obligor upon the
Notes or any Person having or claiming an ownership interest in the Series
Trust Estate, proceedings under Title 11 of the United States Code or any other
applicable federal or state bankruptcy, insolvency or other similar law, or in
case a receiver, assignee or trustee in bankruptcy or reorganization,
liquidator, sequestrator or similar official shall have been appointed for or
taken possession of the Issuer or its property or such other obligor or Person,
or in case of any other comparable judicial proceedings relative to the Issuer
or other obligor upon the Notes of such Series, or to the creditors or property
of the Issuer or such other obligor, the Indenture Trustee, irrespective of
whether the principal of any Notes of such Series shall then be due and payable
as therein expressed or by declaration or otherwise and irrespective of whether
the Indenture Trustee shall have made any demand pursuant to the provisions of
this Section, shall be entitled and empowered, by intervention in such
proceedings or otherwise:

 

(i)            to file
and prove a claim or claims for the whole amount of principal and interest
owing and unpaid to the Secured Parties and to file such other papers or
documents as may be necessary or advisable in order to have the claims of the
Indenture Trustee against the Series Trust Estate (including any claim for
reasonable compensation to the Indenture Trustee and each predecessor Indenture
Trustee, and their respective agents, attorneys and outside counsel, and for
reimbursement of all expenses and liabilities incurred, and all advances made,
by the Indenture Trustee and each predecessor Indenture Trustee, except as a
result of negligence, bad faith or willful misconduct), of the Noteholders
allowed in such Proceedings;

 

(ii)           unless
prohibited by applicable law and regulations, to vote on behalf of the Secured
Parties of such Series in any election of a trustee, a standby trustee or
person performing similar functions in any such proceedings;

 

(iii)          to
collect and receive any monies or other property payable or deliverable on any
such claims and received with respect to the Series Trust Estate and to
distribute all amounts received with respect to the claims of the Secured
Parties and of the Indenture Trustee on their behalf; and

 

(iv)          to file
such proofs of claim and other papers or documents as may be necessary or
advisable in order to have the claims of the Indenture Trustee or the Secured
Parties, in each case against the Series Trust Estate allowed in any judicial
proceedings relative to the Issuer, its creditors and its property;

 

and any trustee, receiver, liquidator, custodian or
other similar official in any such proceeding is hereby authorized by the
Secured Parties to make payments to the Indenture Trustee, and, in the event
that the Indenture Trustee shall consent to the making

 

29

 

of payments directly to the Secured Parties, to pay to
the Indenture Trustee such amounts as shall be sufficient to cover reasonable
compensation to the Indenture Trustee, each predecessor Indenture Trustee and
their respective agents, attorneys and counsel, and all other expenses and
liabilities incurred, and all advances made, by the Indenture Trustee and each
predecessor Indenture Trustee except as a result of negligence or bad faith.

 

(d)           Nothing
herein contained shall be deemed to authorize the Indenture Trustee to
authorize or consent to or vote for or accept or adopt on behalf of any Secured
Party any plan of reorganization, arrangement, adjustment or composition
affecting the Notes or the rights of any Holder thereof or to authorize the
Indenture Trustee to vote in respect of the claim of any Secured Party in any
such proceeding except, as aforesaid, to vote for the election of a trustee in
bankruptcy or similar person.

 

(e)           All rights
of action and of asserting claims under this Indenture, the Series Supplement
or under any of the Notes, may be enforced by the Indenture Trustee without the
possession of any of the Notes or the production thereof in any trial or other
proceedings relative thereto, and any such action or proceedings instituted by
the Indenture Trustee shall be brought in its own name as trustee of an express
trust, and any recovery of judgment, subject to the payment of the expenses,
disbursements and compensation of the Indenture Trustee, each predecessor
Indenture Trustee and their respective agents and attorneys, shall be for the
ratable benefit of the Secured Parties.

 

(f)            In any
proceedings brought by the Indenture Trustee (and also any proceedings
involving the interpretation of any provision of this Indenture or the Series
Supplement), the Indenture Trustee shall be held to represent all the Secured
Parties, and it shall not be necessary to make any Secured Party a party to any
such proceedings.

 

SECTION 5.3         Limitation
of Suits.  No Holder of any Note
shall have any right to institute any proceeding, judicial or otherwise, with
respect to this Indenture or the Series Supplement, or for the appointment of a
receiver or trustee, or for any other remedy hereunder, unless:

 

(i)            such
Holder has previously given written notice to the Indenture Trustee of a
continuing Event of Default with respect to the Notes;

 

(ii)           the
Holders of not less than 25% of the Outstanding Amount of the Notes have made
written request to the Indenture Trustee to institute such proceeding in
respect of such Event of Default in its own name as Indenture Trustee
hereunder;

 

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

 

(iv)          the
Indenture Trustee for 60 days after its receipt of such notice, request and
offer of indemnity has failed to institute such Proceedings; and

 

30

 

(v)           no
direction inconsistent with such written request has been given to the
Indenture Trustee during such 60-day period by the Holders of a majority of the
Outstanding Amount of the Notes of such Series;

 

it being understood and intended that no Holders of
Notes shall have any right in any manner whatsoever by virtue of, or by
availing of, any provision of this Indenture to affect, disturb or prejudice
the rights of any other Holders of Notes 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.

 

SECTION 5.4         Unconditional
Rights of Noteholders To Receive Principal and Interest.  Notwithstanding any other provisions in this
Indenture, the Holder of any Note shall have the right, which is absolute and
unconditional, to receive payment of the principal of and interest, if any, on
such Note on or after the respective due dates thereof expressed in such Note
or in this Indenture or the Series Supplement (or, in the case of redemption or
tender pursuant to the Series Supplement, on or after the related redemption or
tender date) and to institute a suit for the enforcement of any such payment,
and such right shall not be impaired without the consent of such Holder.

 

SECTION 5.5         Restoration
of Rights and Remedies.  If the
Indenture Trustee or any Noteholder has instituted any Proceeding to enforce
any right or remedy under this Indenture or the Series Supplement and such
Proceeding has been discontinued or abandoned for any reason, then and in every
such case the Issuer, the Indenture Trustee and the related Noteholders 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 Indenture Trustee and the related Noteholders shall continue as
though no such proceeding had been instituted.

 

SECTION 5.6         Rights
and Remedies Cumulative.  No right or
remedy herein conferred upon or reserved to any Noteholders is intended to be
exclusive of any other right or remedy, and every right and remedy shall, to
the extent permitted by law, be cumulative and in addition to every other right
and remedy given hereunder or now or hereafter existing at law or in equity or
otherwise.  The assertion or employment
of any right or remedy hereunder, or otherwise, shall not prevent the
concurrent assertion or employment of any other appropriate right or remedy.

 

SECTION 5.7         Delay
or Omission Not a Waiver.  No delay
or omission of the Indenture Trustee, any Controlling Party or any Holder of
any related Note to exercise any right or remedy accruing upon any Default or
Event of Default shall impair any such right or remedy or constitute a waiver
of any such Default or Event of Default or an acquiescence therein.  Every right and remedy given by this Article
V or by law to the Indenture Trustee or to any Noteholders may be exercised
from time to time, and as often as may be deemed expedient, by the Indenture
Trustee or by the related Noteholders, as the case may be.

 

31

 

SECTION 5.8         Limitation
on Voting of Preferred Stock; Control by Noteholders.

 

(a)           Notwithstanding
any provision of any Related Document to the contrary, the Indenture Trustee
shall hold the Class SV Preferred Stock in trust for the benefit of the Secured
Parties and shall vote such stock only pursuant to the written instructions of
the Holders of a majority of the Outstanding Amount of the Notes.

 

(b)           The
Controlling Party shall have the right to direct the time, method and place of
conducting any proceeding for any remedy available to the Indenture Trustee
with respect to the Notes of such Series or exercising any trust or power
conferred on the Indenture Trustee; provided that

 

(i)            such
direction shall not be in conflict with any rule of law or with this Indenture
or with the Series Supplement; and

 

(ii)           the
Indenture Trustee may take any other action deemed proper by the Indenture
Trustee that is not inconsistent with such direction;

 

provided, however, that,
subject to Section 6.1, the Indenture Trustee need not take any action that it
determines might involve it in liability or might materially adversely affect
the rights of any Noteholders not consenting to such action.

 

SECTION 5.9         Waiver
of Past Defaults. The Controlling Party may waive any Default or Event of
Default relating to the Notes and its consequences except a Default (a) in
payment of principal of or interest on any of the Notes or (b) in respect of a
covenant or provision hereof which cannot be modified or amended without the
consent of the Holder of each Note.  In
the case of any such waiver, the Issuer, the Indenture Trustee and the Holders
of the Notes shall be restored to their former positions and rights hereunder,
respectively; but no such waiver shall extend to any subsequent or other
Default or impair any right consequent thereto.

 

Upon any such waiver, such Default shall cease to
exist and be deemed to have been cured and not to have occurred, and any Event
of Default arising therefrom shall be deemed to have been cured and not to have
occurred, for every purpose of this Indenture and the Series Supplement; but no
such waiver shall extend to any subsequent or other Default or Event of Default
or impair any right consequent thereto.

 

SECTION 5.10       Undertaking
for Costs.  All parties to this
Indenture and the Series Supplement agree, and each Holder of any Note by such
Holder’s 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 and the Series Supplement, or in any suit against
the Indenture Trustee for any action taken, suffered or omitted by it as
Indenture 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 (a) any suit instituted by the Indenture Trustee,
(b) any suit instituted by any Noteholder, or group of Noteholders, in each
case holding in the aggregate more than 10% of the Outstanding

 

32

 

Amount of the
Notes or (c) any suit instituted by any Noteholder for the enforcement of
the payment of principal of or interest on any Note on or after the respective
due dates expressed in such Note and in this Indenture and the Series Supplement.

 

SECTION 5.11                    Waiver
of Stay or Extension Laws.  The
Issuer covenants (to the extent that it may lawfully do so) that it will not at
any time insist upon, or plead or in any manner whatsoever, claim or take the
benefit of, any stay or extension law wherever enacted, now or at any time
hereafter in force, that may affect the covenants or the performance of this
Indenture and the Series Supplement; and the Issuer (to the extent that it
may lawfully do so) hereby expressly waives all benefit of any such law, and
covenants that it will not hinder, delay or impede the execution of any power
herein granted to the Indenture Trustee, but will suffer and permit the
execution of every such power as though no such law had been enacted.

 

SECTION 5.12                    Action
on Notes.  The Indenture Trustee’s
right to seek and recover judgment on the Notes or under this Indenture or the Series Supplement
shall not be affected by the seeking, obtaining or application of any other
relief under or with respect to this Indenture or the Series Supplement.  Neither the lien of this Indenture or the Series Supplement
nor any rights or remedies of the Indenture Trustee or the Noteholders shall be
impaired by the recovery of any judgment by the Indenture Trustee against the
Issuer or by the levy of any execution under such judgment upon any portion of
the Series Trust Estate or upon any of the assets of the Issuer.

 

SECTION 5.13                    Performance
and Enforcement of Certain Obligations.

 

(a)                                  Promptly
following a request from the Indenture Trustee to do so and at the Master
Servicer’s expense, the Issuer agrees to take all such lawful action as the
Indenture Trustee may request to compel or secure the performance and
observance by the Seller and the Master Servicer, as applicable, of each of
their obligations to the Issuer under or in connection with the Master Sale and
Servicing Agreement in accordance with the terms thereof, and to exercise any
and all rights, remedies, powers and privileges lawfully available to the
Issuer under or in connection with the Master Sale and Servicing Agreement to
the extent and in the manner directed by the Indenture Trustee, including the
transmission of notices of default on the part of the Seller or the Master
Servicer thereunder and the institution of legal or administrative actions or
proceedings to compel or secure performance by the Seller or the Master
Servicer of each of their obligations under the Master Sale and Servicing
Agreement.

 

(b)                                 If
an Event of Default has occurred and is continuing, the Indenture Trustee may, and
at the written direction of the Holders of 66-2/3% of the Outstanding Amount of
the Notes shall, exercise all rights, remedies, powers, privileges and claims
of the Issuer against the Seller or the Master Servicer under or in connection
with the Master Sale and Servicing Agreement, including the right or power to
take any action to compel or secure performance or observance by the Seller or
the Master Servicer of each of their obligations to the Issuer thereunder and
to give any consent, request, notice, direction, approval, extension or waiver
under the Master Sale and Servicing Agreement, and any right of the Issuer to
take such action shall be suspended.

 

33

 

ARTICLE VI.

The Indenture Trustee and the Administrator

 

SECTION 6.1                          Duties
of Indenture Trustee.

 

(a)                                  If
an Event of Default has occurred and is continuing of which a Responsible
Officer of the Indenture Trustee has actual knowledge, the Indenture Trustee
shall exercise the rights and powers vested in it by this Indenture and the other
Basic Documents and use the same degree of care and skill in its exercise as a
prudent person would exercise or use under the circumstances in the conduct of
such person’s own affairs.

 

(b)                                 Except
during the continuance of an Event of Default with respect to a Series of
which a Responsible Officer of the Indenture Trustee has actual knowledge:

 

(i)                                     the
Indenture Trustee undertakes to perform with respect to such Series such
duties and only such duties as are specifically set forth in this Indenture and
the other Basic Documents to which it is a party and no implied covenants or
obligations shall be read into this Indenture or the other Basic Documents
against the Indenture Trustee; and

 

(ii)                                  in
the absence of bad faith on its part, the Indenture 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 Indenture
Trustee as the case may be and conforming to the requirements of this Indenture
and the other Basic Documents; however, the Indenture Trustee shall examine the
certificates and opinions to determine whether or not they conform on their
face to the requirements of this Indenture and the other Basic Documents provided,
further, that the Indenture Trustee shall not be responsible for the accuracy
or content of any resolution, certificate, statement, opinion, report,
document, order or other instrument furnished to it, including, without
limitation, any statistical, numerical or financial data contained therein.

 

(c)                                  The
Indenture Trustee may not be relieved from liability for its own negligent
action, its own negligent failure to act or its own willful misconduct, except
that:

 

(i)                                     this
paragraph does not limit the effect of paragraph (b) of this Section;

 

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

 

(iii)                               the
Indenture 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 5.8.

 

34

 

(d)                                 The
Indenture Trustee shall not be liable for interest on any money received by it
except as such Person may agree in writing with the Issuer.

 

(e)                                  Money
held in trust by the Indenture Trustee, if any, need not be segregated from
other funds except to the extent required by law or the terms of this
Indenture, the Series Supplement or the Master Sale and Servicing
Agreement.

 

(f)                                    No
provision of this Indenture or the other Basic Documents shall require the
Indenture Trustee to expend or risk its own funds or otherwise incur financial
liability in the performance of any of its duties hereunder or in the exercise
of any of its rights or powers, if it shall have reasonable grounds to believe
that repayment of such funds or indemnity reasonably satisfactory to it against
such risk or liability is not reasonably assured to it.

 

(g)                                 Every
provision of this Indenture and the other Basic Documents relating to the
conduct or affecting the liability of or affording protection to the Indenture
Trustee shall be subject to the provisions of this Section and to the
provisions of the TIA.

 

(h)                                 The
Indenture Trustee shall, and hereby agrees that it will, perform all of the
obligations and duties required of it under each Related Document to which it
is a party.

 

(i)                                     Without
limiting the generality of this Section 6.1, neither the Indenture Trustee
nor the Administrator shall have any duty (i) to see to any recording,
filing or depositing of this Indenture, the Series Supplement or any
agreement referred to herein or any financing statement evidencing a security
interest in the Financed Vehicles, or to see to the maintenance of any such
recording or filing or depositing or to any recording, refiling or redepositing
of any thereof, (ii) to see to any insurance of the Financed Vehicles or
Obligors or to effect or maintain any such insurance, (iii) to see to the
payment or discharge of any tax, assessment or other governmental charge or any
Lien or encumbrance of any kind owing with respect to, assessed or levied
against any part of the Trust, (iv) to confirm or verify the contents of
any reports or certificates delivered to the Indenture Trustee pursuant to this
Indenture, the Series Supplement or the Master Sale and Servicing
Agreement believed by the Indenture Trustee to be genuine and to have been
signed or presented by the proper party or parties, or (v) to inspect the
Financed Vehicles at any time or ascertain or inquire as to the performance or
observance of any of the Issuer’s, the Seller’s or the Master Servicer’s
representations, warranties or covenants or the Master Servicer’s duties and
obligations as Master Servicer and as custodian of the Receivable Files under
the Master Sale and Servicing Agreement.

 

(j)                                     In
no event shall the Indenture Trustee, in any of its capacities hereunder, be
deemed to have assumed any duties of the Owner Trustee under the Delaware Statutory
Trust Statute, common law, or the Trust Agreement.

 

35

 

SECTION 6.2                          Rights
of Indenture Trustee.

 

(a)                                  The
Indenture Trustee may rely on any document believed by it to be genuine and to
have been signed or presented by the proper person.  The Indenture Trustee need not investigate
any fact or matter stated in the document.

 

(b)                                 Before
the Indenture Trustee acts or refrains from acting, it may require an Officer’s
Certificate and/or an Opinion of Counsel. 
The Indenture Trustee shall not be liable for any action it takes or
omits to take in good faith in reliance on the Officer’s Certificate and/or
Opinion of Counsel.

 

(c)                                  The
Indenture Trustee may execute any of the trusts or powers hereunder or perform
any duties hereunder either directly or by or through agents or attorneys or a
custodian or nominee, and the Indenture Trustee shall not be responsible for
any misconduct or negligence on the part of, or for the supervision of the
Master Servicer or any other agent, attorney, custodian or nominee appointed
with due care by it hereunder.

 

(d)                                 The
Indenture 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; provided,
however, that the Indenture Trustee’s conduct does not constitute
willful misconduct, negligence or bad faith.

 

(e)                                  The
Indenture Trustee may consult with counsel, and the advice or opinion of
counsel with respect to legal matters relating to any Related Documents and the
Notes and such advice or opinion of counsel shall be full and complete
authorization and protection from liability in respect to any action taken, omitted
or suffered by it hereunder in good faith and in accordance with the advice or
opinion of such counsel.

 

(f)                                    The
Indenture Trustee shall be under no obligation to institute, conduct or defend
any litigation under this Indenture or the Series Supplement or in
relation to this Indenture or the Series Supplement, at the request, order
or direction of any of the Holders of Notes, pursuant to the provisions of this
Indenture or the Series Supplement, unless such Holders of Notes shall
have offered to the Indenture Trustee reasonable security or indemnity against
the costs, expenses and liabilities that may be incurred therein or thereby; provided,
however, that the Indenture Trustee shall, upon the occurrence of an
Event of Default (that has not been cured), exercise the rights and powers
vested in it by this Indenture and the Series Supplement with reasonable
care and skill customary for the care and skill exercised by Indenture Trustees
under similar circumstances.

 

(g)                                 The
Indenture Trustee shall not be bound to make any investigation into the facts
or matters stated in any resolution, certificate, statement, instrument,
opinion, report, notice, request, consent, order, approval, bond or other paper
or document unless required in writing to do so by any Holder of a Note; provided,
however, that if the payment within a reasonable time to the Indenture
Trustee of the costs, expenses or liabilities likely to be incurred by it in
the making of such investigation

 

36

 

is, in the opinion of the Indenture Trustee not
reasonably assured to the Indenture Trustee by the security afforded to it by
the terms of this Indenture, the Series Supplement or the Master Sale and
Servicing Agreement, the Indenture Trustee may require indemnity reasonably
satisfactory to it against such cost, expense or liability as a condition to so
proceeding; the reasonable expense of every such examination shall be paid by
the Person making such request.

 

(h)                                 The
right of the Indenture Trustee to perform any discretionary act enumerated in
this Indenture shall not be construed as a duty, and the Indenture Trustee
shall not be answerable for other than its negligence or willful misconduct in
the performance of such act.  For
purposes of clarification, the Indenture Trustee shall be under no obligation
hereunder to monitor the perfection of any security interest or the filing of
any financing statement or continuation statement in connection therewith.

 

(i)                                     The
Indenture Trustee shall not be required to give any bond or surety in respect
of the execution of the Trust Estate created hereby or the powers granted
hereunder.

 

(j)                                     Anything
in this Indenture or any supplement hereto to the contrary notwithstanding, in
no event shall the Indenture Trustee be liable for special, indirect or
consequential loss or damage of any kind whatsoever (including but not limited
to lost profits), even if the Indenture Trustee has been advised of the
likelihood of such loss or damage and regardless of the form of action.

 

(k)                                  The
Indenture Trustee shall not be required to take notice or be deemed to have
notice or knowledge of any default, Event of Default or Master Servicer
Termination Event unless a Responsible Officer of the Indenture Trustee shall
have actual notice thereof.

 

SECTION 6.3                          Individual
Rights of Indenture Trustee.  The
Indenture Trustee in its individual or any other capacity may become the owner
or pledgee of Notes and may otherwise deal with the Issuer or its Affiliates
with the same rights it would have if it were not Indenture Trustee.  Any Note Paying Agent, Note Registrar,
co-registrar or co-paying agent may do the same with like rights.  However, the Indenture Trustee must comply
with Sections 6.11 and 6.12.

 

SECTION 6.4                          Indenture
Trustee’s Disclaimer.  The Indenture
Trustee shall not be responsible for and makes no representation as to the
validity or adequacy of this Indenture, the Series Supplement, the Series Trust
Estate or the Notes, it shall not be accountable for the Issuer’s use of the
proceeds from the Notes, and it shall not be responsible for any statement of
the Issuer in the Indenture, in the Series Supplement or in any document
issued in connection with the sale of the Notes or in the Notes.

 

SECTION 6.5                          Notice
of Defaults.  If an Event of Default
occurs and is continuing and if it is either actually known by, or written
notice of the existence thereof has been delivered to, a Responsible Officer of
the Indenture Trustee, the Indenture Trustee shall mail to each Noteholder
notice of the Event of Default within 90 days after

 

37

 

such knowledge or
notice occurs.  Except in the case of an Event
of Default in payment of principal of or interest on any Note, the Indenture
Trustee may withhold the notice to Noteholders if and so long as a committee of
its Responsible Officers in good faith determines that withholding the notice
is in the interests of Noteholders.

 

SECTION 6.6                          Reports
by Master Servicer to Holders.  Upon
the written request of any Noteholder to the Master Servicer, the Master
Servicer shall on behalf of the Issuer deliver to the Administrator for
distribution to any Noteholder such information as may be reasonably required
by such Noteholder to enable such Noteholder to prepare its federal and state
income tax returns required by law.  Neither
the Indenture Trustee nor the Administrator shall have any duty or obligation
to verify or confirm the contents of the information contained therein.

 

SECTION 6.7                          Indenture
Trustee Compensation and Indemnification.

 

(a)                                  As
payable in the Series Supplement, the Issuer shall, or shall cause the
Master Servicer to, pay to the Indenture Trustee from time to time the
Indenture Trustee Fee as compensation for its services.  The Indenture Trustee’s compensation shall
not be limited by any law on compensation of a trustee of an express
trust.  The Issuer shall or shall cause
the Master Servicer to reimburse the Indenture Trustee for all reasonable
out-of-pocket expenses incurred or made by it, including costs of collection,
in addition to the compensation for its services.  Such expenses shall include the reasonable
compensation and expenses, disbursements and advances of the Indenture Trustee’s
agents, outside counsel, accountants and experts.  The Issuer shall or shall cause the Master
Servicer to indemnify the Indenture Trustee, and its respective officers,
directors, employees and agents against any and all loss, liability or expense
(including attorneys’ fees and expenses) incurred by each of them in connection
with the acceptance or the administration of this trust and the performance of
its duties hereunder.  The Indenture
Trustee shall notify the Issuer and the Master Servicer promptly of any claim
for which it may seek indemnity.  Failure
by the Indenture Trustee to so notify the Issuer and the Master Servicer shall
not relieve the Issuer of its obligations hereunder or the Master Servicer of
its obligations under Article XII of the Master Sale and Servicing
Agreement.  The Issuer shall defend or
shall cause the Master Servicer to defend any claim for indemnity that may
arise against the Indenture Trustee, or the Indenture Trustee may have separate
counsel and the Issuer shall or shall cause the Master Servicer to pay the fees
and expenses of such counsel.  Neither
the Issuer nor the Master Servicer need reimburse any expense or indemnify
against any loss, liability or expense incurred by the Indenture Trustee
through such Person’s own willful misconduct, negligence or bad faith.

 

(b)                                 The
Issuer’s payment obligations to the Indenture Trustee pursuant to this Section shall
survive the resignation or removal of the Indenture Trustee and the discharge
of this Indenture.  When the Indenture
Trustee incurs expenses after the occurrence of an Insolvency Event with
respect to the Issuer, the expenses are intended to constitute expenses of
administration under Title 11 of the United States Code or any other applicable
federal or state bankruptcy, insolvency or similar law.  Notwithstanding anything else set forth in
any Related Documents, the Indenture Trustee agrees that the obligations of the
Issuer (but not the Master Servicer) to the Indenture Trustee hereunder

 

38

 

or under any other Related Documents, shall be
recourse to the Series Trust Estate only and specifically shall not be
recourse to the assets of any Securityholder. 
In addition, the Indenture Trustee agrees that its recourse to the
Issuer, the Series Trust Estate, the Seller and amounts held pursuant to
the Series Support shall be limited to the right to receive the
distributions as provided for in the payment priority provisions of the Series Supplement.

 

SECTION 6.8                          Replacement
of Indenture Trustee.  The Indenture
Trustee may, and in the circumstances specified in subparagraph (i) shall,
resign at any time upon 60 days’ prior written notice by so notifying the
Issuer, Holders of a majority of Outstanding Amount of the Notes and the Master
Servicer.  In addition, the Master
Servicer may remove the Indenture Trustee by so notifying the Indenture Trustee
upon 60 days’ written notice.  The Issuer
may and shall, at the direction of the Noteholders, remove the Indenture
Trustee, if:

 

(i)                                     the
Indenture Trustee fails to comply with Section 6.11;

 

(ii)                                  a
court having jurisdiction in the premises in respect of the Indenture Trustee
in an involuntary case or proceeding under federal or state banking or
bankruptcy laws, as now or hereafter constituted, or any other applicable federal
or state bankruptcy, insolvency or other similar law, shall have entered a
decree or order granting relief or appointing a receiver, liquidator, assignee,
custodian, trustee, conservator, sequestrator (or similar official) for the
Indenture Trustee or for any substantial part of the Indenture Trustee’s
property, or ordering the winding-up or liquidation of the Indenture Trustee’s
affairs;

 

(iii)                               an
involuntary case under the federal bankruptcy laws, as now or hereafter in
effect, or another present or future federal or state bankruptcy, insolvency or
similar law is commenced with respect to the Indenture Trustee and such case is
not dismissed within 60 days;

 

(iv)                              the
Indenture Trustee commences a voluntary case under any federal or state banking
or bankruptcy laws, as now or hereafter constituted, or any other applicable
federal or state bankruptcy, insolvency or other similar law, or consents to
the appointment of or taking possession by a receiver, liquidator, assignee,
custodian, trustee, conservator, sequestrator (or other similar official) for
the Indenture Trustee or for any substantial part of the Indenture Trustee’s
property, or makes any assignment for the benefit of creditors or fails
generally to pay its debts as such debts become due or takes any corporate
action in furtherance of any of the foregoing;

 

(v)                                 the
Indenture Trustee otherwise becomes incapable of acting; or

 

(vi)                              the
rating assigned to the long-term unsecured debt obligations of the Indenture
Trustee by the Rating Agencies shall be lowered below the rating

 

39

 

of “BBB”, “Baa2” or equivalent rating or be withdrawn by either of the
Rating Agencies.

 

If the Indenture Trustee
resigns or is removed or if a vacancy exists in the office of Indenture Trustee
for any reason (the Indenture Trustee in such event being referred to herein as
the retiring Indenture Trustee), the Issuer shall promptly deliver a written
notice of such removal, resignation or vacancy to the Master Servicer, and the
Master Servicer may appoint a successor Indenture Trustee.  If the Master Servicer fails to appoint such
a successor Indenture Trustee, the Issuer or a resigning Indenture Trustee may
petition any court of competent jurisdiction to appoint a successor Indenture
Trustee.  If the Indenture Trustee
resigns or is removed, the Indenture Trustee shall also resign or be removed,
as the case may be, as Note Paying Agent, Note Registrar and Certificate Paying
Agent.

 

A successor Indenture
Trustee shall deliver a written acceptance of its appointment to the retiring
Indenture Trustee, the Issuer and the Administrator.  Thereupon the resignation or removal of the
retiring Indenture Trustee shall become effective, and the successor Indenture
Trustee shall have all the rights, powers and duties of the retiring Indenture
Trustee under the Basic Documents.  The
successor Indenture Trustee shall mail a notice of its succession to
Noteholders.  The retiring Indenture
Trustee shall promptly transfer all property held by it as Indenture Trustee to
the successor Indenture Trustee.

 

If the Indenture Trustee
fails to comply with Section 6.11, any Noteholder may petition any court
of competent jurisdiction for the removal of the Indenture Trustee and the
appointment of a successor Indenture Trustee.

 

Notwithstanding the
replacement of the Indenture Trustee pursuant to this Section, the Issuer’s and
the Master Servicer’s obligations under Section 6.7 shall continue for the
benefit of the retiring Indenture Trustee.

 

SECTION 6.9                          Successor
Indenture Trustee by Merger.  If the
Indenture Trustee consolidates with, merges or converts into, or transfers all
or substantially all its corporate trust business or assets to, another
corporation or banking association, the resulting, surviving or transferee
entity without any further act shall be the successor Indenture Trustee; provided
that such corporation or banking association shall otherwise be eligible under Section 6.11
hereof.  The Indenture Trustee shall provide
the Rating Agencies with written notice of any such transaction as soon as
practical thereafter.

 

SECTION 6.10                    Appointment
of Co-Indenture Trustee or Separate Indenture Trustee.

 

(a)                                  Notwithstanding
any other provisions of this Indenture, at any time, for the purpose of meeting
any legal requirement of any jurisdiction in which any part of the Trust may at
the time be located, the Indenture Trustee shall have the power and may execute
and deliver all instruments to appoint one or more Persons to act as a

 

40

 

co-trustee or co-trustees, or separate trustee or
separate trustees, of all or any part of the Series Trust Estate, and to
vest in such Person or Persons, in such capacity and for the benefit of the
Secured Parties, such title to the Series Trust Estate, or any part hereof,
and, subject to the other provisions of this Section, such powers, duties,
obligations, rights and trusts as the Indenture Trustee may consider necessary
or desirable.  No co-trustee or separate
trustee hereunder shall be required to meet the terms of eligibility as a
successor trustee under Section 6.11 and no notice to Noteholders of the
appointment of any co-trustee or separate trustee shall be required under Section 6.8
hereof.  The cost and expense of such
co-trustee or co-trustees, and/or separate trustee or separate trustees, shall
be a cost and expense of the Indenture Trustee pursuant to Section 3.03(a)(ii) of
the Series Supplement.

 

(b)                                 Every
separate trustee and co-trustee shall, to the extent permitted by law, be
appointed and act subject to the following provisions and conditions:

 

(i)                                     all
rights, powers, duties and obligations conferred or imposed upon the Indenture
Trustee shall be conferred or imposed upon and exercised or performed by the
Indenture Trustee and such separate trustee or co-trustee jointly (it being
understood that such separate trustee or co-trustee is not authorized to act
separately without the Indenture Trustee joining in such act), except to the
extent that under any law of any jurisdiction in which any particular act or
acts are to be performed the Indenture Trustee shall be incompetent or
unqualified to perform such act or acts, in which event such rights, powers,
duties and obligations (including the holding of title to the Trust or any
portion thereof in any such jurisdiction) shall be exercised and performed
singly by such separate trustee or co-trustee, but solely at the direction of
the Indenture Trustee;

 

(ii)                                  no
trustee hereunder shall be personally liable by reason of any act or omission
of any other trustee hereunder, including acts or omissions of predecessor or
successor trustees; and

 

(iii)                               the
Indenture Trustee may at any time accept the resignation of or remove any
separate trustee or co-trustee.

 

(c)                                  Any
notice, request or other writing given to the Indenture Trustee shall be deemed
to have been given to each separate trustee and co-trustee, as effectively as
if given to each of them.  Every
instrument appointing any separate trustee or co-trustee shall refer to this
Indenture and the conditions of this Article VI.  Each separate trustee and co-trustee, upon
its acceptance of the trusts conferred, shall be vested with the estates or
property specified in its instrument of appointment, either jointly with the
Indenture Trustee or separately, as may be provided therein, subject to all the
provisions of this Indenture, specifically including every provision of this
Indenture relating to the conduct of, affecting the liability of, or affording
protection to, the Indenture Trustee. 
Every such instrument shall be filed with the Indenture Trustee.

 

(d)                                 Any
separate trustee or co-trustee may at any time constitute the Indenture
Trustee, its agent or attorney-in-fact with full power and authority, to the
extent

 

41

 

not prohibited by law, to do any lawful act under or
in respect of this Indenture on its behalf and in its name.  If any separate trustee or co-trustee shall
die, dissolve, become insolvent, become incapable of acting, resign or be
removed, all of its estates, properties, rights, remedies and trusts shall vest
in and be exercised by the Indenture Trustee, to the extent permitted by law,
without the appointment of a new or successor trustee.

 

SECTION 6.11                    Eligibility:
Disqualification.  The Indenture
Trustee shall at all times:  satisfy TIA § 310(a),
have a combined capital and surplus of at least $50,000,000 as set forth in its
most recent published annual report of condition, and have a long-term debt
rating of at least “BBB”, “Baa2” or equivalent rating from each of the Rating
Agencies.  The Indenture Trustee shall
comply with TIA § 310(b), including the optional provision permitted by
the second sentence of TIA § 310(b)(9); provided, however,
that there shall be excluded from the operation of TIA § 310(b)(1) any
indenture or indentures under which other securities of the Issuer are
outstanding if the requirements for such exclusion set forth in TIA § 310(b)(1) are
met.

 

SECTION 6.12                    Preferential
Collection of Claims Against Issuer. 
The Indenture Trustee shall comply with TIA § 311(a), excluding any
creditor relationship listed in TIA § 311(b).  An Indenture Trustee who has resigned or been
removed shall be subject to TIA § 311(a) to the extent indicated.

 

SECTION 6.13                    Representations
and Warranties of the Indenture Trustee. 
The Indenture Trustee represents and warrants to the Issuer as follows:

 

(a)                                  Due
Organization.  The Indenture Trustee
is a national banking association, duly organized, validly existing and in good
standing under the laws of the United States and is duly authorized and
licensed under applicable law to conduct its business as presently conducted.

 

(b)                                 Corporate
Power.  The Indenture Trustee has all
requisite right, power and authority to execute and deliver this Indenture, the
Series Supplement and any other Related Document to which it is a party
and to perform all of its duties as the Indenture Trustee hereunder.

 

(c)                                  Due
Authorization.  The execution and
delivery by the Indenture Trustee of this Indenture, the Series Supplement
and any other Related Documents to which it is a party, and the performance by
the Indenture Trustee of its duties hereunder and thereunder, have been duly
authorized by all necessary corporate proceedings which are required for the
valid execution and delivery by the Indenture Trustee, or the performance by
the Indenture Trustee, of this Indenture, the Series Supplement and such
other Related Documents.

 

(d)                                 Valid
and Binding Indenture.  The Indenture
Trustee has duly executed and delivered this Indenture, the Series Supplement
and each other Related Document to which it is a party, and each of this
Indenture, the Series Supplement and each other Related Document
constitutes the legal, valid and binding obligation of the Indenture Trustee
enforceable against the Indenture Trustee in accordance with its terms,

 

42

 

except as (i) such enforceability may be limited
by bankruptcy, insolvency, reorganization and similar laws relating to or
affecting the enforcement of creditors’ rights generally and (ii) the
availability of equitable remedies may be limited by equitable principles of
general applicability.

 

SECTION 6.14                    Waiver
of Setoffs.  The Indenture Trustee
hereby expressly waives any and all rights of setoff that the Indenture Trustee
may otherwise at any time have under applicable law with respect to any Trust
Account and agrees that amounts in the Trust Accounts shall at all times be
held and applied solely in accordance with the provisions hereof.

 

SECTION 6.15                    No
Consent to Certain Acts of Seller. 
The Seller shall not request that the Indenture Trustee consent to, nor
shall the Indenture Trustee consent to any action proposed to be taken by the
Seller pursuant to Article FIFTEENTH of the Seller’s Articles of
Incorporation.

 

SECTION 6.16                    Duties,
Liabilities and Limitations on Liability of Administrator.

 

(a)                                  The
Administrator shall undertake to perform such duties and only such duties as
are specifically set forth in this Indenture and the other Basic Documents to
which it is a party.  The duties and
obligations of the Administrator with respect to the Notes and the Certificates
and the Basic Documents to which it is a party shall be determined solely by
the express provisions of such Basic Documents, the Administrator shall not be
liable except for the performance of such duties and obligations as are
specifically set forth in the Basic Documents to which it is a party, and no
implied covenants or obligations shall be read into the Basic Documents against
the Administrator.

 

(b)                                 The
Administrator shall have all of the rights of, benefits of, and limitations on
liability afforded to, the Indenture Trustee under this Article VI to the
same extent as though the Administrator had been named in the various
provisions of Article VI, except (i) to the extent otherwise provided
in Sections 6.17, 6.18 and 6.19 (for example, Section 6.17 shall apply
instead of Section 6.7), (ii) with respect to Section 6.4, the
Adminstrator shall be responsible for the Administrator’s certificate of authentication,
and (iii) to the extent a conflict arises between this Section 6.16
and another provision of this Article VI, this Section 6.16 shall
govern.  Such rights, benefits and
limitations will be accorded the Administrator, in its capacity as such, under
all of the Basic Documents.

 

(c)                                  In
acting under this Indenture and the other Basic Documents to which it is a
party and in connection with the Notes and the Ownership Interest, the
Administrator is acting solely as an agent of the Issuer and does not assume
any obligation or relationship of agency for or with, or any fiduciary
obligation towards, any of the Holders of the Notes.

 

(d)                                 The
Administrator shall be obligated to make payments pursuant to the terms of the Basic
Documents only if, and only to the extent that, sufficient funds are

 

43

 

available therefor in the Collection Account.  In no event shall the Administrator, in its
capacity as Administrator, Note Paying Agent or Certificate Paying Agent or in
its individual capacity, be liable for any such payments.

 

(e)                                  In
each case that the Administrator (including in its capacity as Note Paying
Agent or Certificate Paying Agent hereunder) may or is required hereunder or
under any other Basic Document to which it is a party to take any action (an “Action”),
including without limitation to make any determination or judgment (including
without limitation the proper reporting and/or withholding for federal income
tax purposes required with respect to any payment made under any Basic Document
for which the Administrator has a reporting and/or withholding obligation for federal
income tax purposes), to exercise rights or powers or otherwise act hereunder
or thereunder, the Administrator may seek direction from the Master
Servicer.  The Administrator shall not be
liable with respect to any Action taken or omitted to be taken by it in good
faith in accordance with the direction from the Master Servicer.  If the Administrator shall request direction
from the Master Servicer with respect to any Action, the Administrator shall be
entitled to refrain from such Action unless and until such Administrator shall
have received direction from the Master Servicer, and the Administrator shall
not incur liability to any Person by reason of so refraining.

 

(f)                                    The
Administrator may rely, and shall be fully protected in relying, on any
direction or instruction received from the Master Servicer, the Indenture
Trustee or any other party hereto or to the other Basic Documents.

 

(g)                                 The
Administrator shall not be responsible for filing any financing or continuation
statement or otherwise taking any action in connection with any security
interest or lien granted pursuant to the Basic Documents.

 

SECTION 6.17                    Administrator
Compensation and Indemnification.

 

(a)                                  The
Administrator shall be entitled to such compensation as shall be mutually
agreed upon between it and the Master Servicer for its services hereunder and
under the other Basic Documents to which it is a party, including its roles as
Note Paying Agent and Certificate Paying Agent and Certificate Registrar under
the Trust Agreement.  The Administrator
agrees and acknowledges that it shall look solely to the Master Servicer for
payment of such compensation and it shall not be entitled to payment of such
compensation from the Issuer, the Indenture Trustee or out of the Series Trust
Estate.  The Issuer shall or shall cause
the Master Servicer to reimburse the Administrator for all reasonable
out-of-pocket expenses incurred or made by it, including costs of collection,
in addition to the compensation for its services.  Such expenses shall include the reasonable
compensation and expenses, disbursements and advances of the Administrator’s
agents, outside counsel, accountants and experts.

 

(b)                                 The
Administrator and any director, officer, employee or agent of the Administrator
shall be indemnified by the initial Master Servicer and held harmless by the
Master Servicer against any loss, liability or expense (including reasonable
attorney’s fees and expenses) arising out of, relating to or in connection with
(i) this

 

44

 

Indenture, the Notes and the other Basic Documents or
in connection with their respective duties hereunder or any legal action relating
thereto, other than any loss, liability or expense incurred by reason of
willful misconduct, negligence or bad faith in the performance of the
Administrator’s duties hereunder or thereunder and (ii) any audit,
controversy or judicial proceeding relating to a governmental taxing authority.

 

(c)                                  Notwithstanding
anything contained in this Indenture or any of the other Basic Documents to the
contrary, the indemnification provided for in this Section 6.17 shall
survive the payment of the Notes, the resignation or removal of the
Administrator and/or the satisfaction and discharge of this Indenture.

 

SECTION 6.18                    Replacement
of Administrator.

 

No resignation or removal
of the Administrator and no appointment of a successor Administrator shall
become effective until the acceptance of appointment by the successor
Administrator pursuant to this Section. 
The Administrator may resign at any time by so notifying the
Issuer.  The Issuer shall remove the
Administrator if:

 

(a)                                  the
Administrator fails to comply with Section 6.11 above;

 

(b)                                 the
Administrator is adjudged a bankrupt or insolvent;

 

(c)                                  a
receiver or other public officer takes charge of the Administrator or its
property; or

 

(d)                                 the
Administrator otherwise becomes incapable of acting.

 

If the Administrator
resigns or is removed or if a vacancy exists in the office of Administrator for
any reason (the Administrator in such event being referred to herein as the
retiring Administrator), the Issuer shall promptly, but in no event later than
30 days after such removal or resignation, appoint a successor Administrator.

 

A successor Administrator
shall deliver a written acceptance of its appointment to the retiring
Administrator, the Issuer and the Indenture Trustee.  Thereupon the resignation or removal of the retiring
Administrator shall become effective, and the successor Administrator shall
have all the rights, powers and duties of the Administrator under this
Indenture and the other Basic Documents to which it is a party.  The successor Administrator shall mail a
notice of its succession to Noteholders. 
The retiring Administrator shall promptly transfer all property held by
it as Administrator to the successor Administrator.

 

If a successor
Administrator does not take office within 30 days after the retiring
Administrator resigns or is removed, the Indenture Trustee shall perform the
obligations of the Administrator hereunder until a successor Administrator
shall be appointed, and for so long as the Indenture Trustee serves as
Administrator hereunder, the Indenture Trustee shall be entitled to such
compensation in addition to its compensation pursuant to Section 6.7
hereunder as the Master Servicer and the Indenture Trustee shall agree.

 

45

 

Notwithstanding
the replacement of the Administrator pursuant to this Section 6.18, the
Master Servicer’s obligations under Section 6.17 above shall continue for
the benefit of the retiring Administrator.

 

SECTION 6.19                    Successor
Administrator by Merger.

 

If the Administrator consolidates
with, merges or converts into, or transfers all or substantially all its
corporate trust business or assets to, another Person or banking association,
the resulting, surviving or transferee corporation without any further act
shall be the successor Administrator; provided, that such corporation or
banking association shall be otherwise qualified and eligible under Section 6.11
above.

 

In
case, at the time such successor or successors by merger, conversion or
consolidation to the Administrator shall succeed to the rights, duties and
responsibilities created by this Indenture, any of the Notes shall have been
authenticated but not delivered, any such successor to the Administrator may
adopt the certificate of authentication, if any, of any predecessor
administrator, and deliver such Notes so authenticated; and in case at that
time any of the Notes shall not have been authenticated, any successor to the
Administrator may authenticate such Notes either in the name of any predecessor
hereunder or in the name of the successor to the Administrator; and in all such
cases such certificates shall have the full force which it is anywhere in the
Notes or in this Indenture provided that the certificate of the Administrator
shall have.

 

ARTICLE VII.

Noteholders’ Lists and Reports

 

SECTION 7.1                          Issuer
To Furnish To Indenture Trustee and Administrator Names and Addresses of
Noteholders.  The Issuer will furnish
or cause to be furnished to the Indenture Trustee and the Administrator with
respect to each Series of Notes (a) not more than five days after the
earlier of (i) each Record Date with respect to such Series and (ii) three
months after the last Record Date, a list, in such form as the Indenture
Trustee and the Administrator may reasonably require, of the names and
addresses of the Holders with respect to such Series as of such Record
Date, (b) at such other times as the Indenture Trustee and/or the
Administrator may request in writing, within 30 days after receipt by the
Issuer of any such request, a list of similar form and content as of a date not
more than 10 days prior to the time such list is furnished; provided, however,
that so long as the Administrator is the Note Registrar, no such list shall be
required to be furnished to the Administrator.

 

46

 

SECTION 7.2                          Preservation
of Information; Communications to Noteholders.  The Indenture Trustee shall preserve, in as
current a form as is reasonably practicable, the names and addresses of the
Holders contained in the most recent list furnished to the Indenture Trustee as
provided in Section 7.1.  The
Indenture Trustee may destroy any list furnished to it as provided in such Section 7.1
upon receipt of a new list so furnished.

 

(a)                                  Noteholders
may communicate pursuant to TIA § 312(b) with other Noteholders with
respect to their rights under this Indenture or under the Notes.

 

(b)                                 The
Issuer, the Indenture Trustee, the Administrator and the Note Registrar shall
have the protection of TIA § 312(c).

 

SECTION 7.3                          Reports
by Issuer.

 

(a)                                  If
this Indenture is qualified under the TIA, the Issuer shall:

 

(i)                                     file
with the Indenture Trustee, within 15 days after the Issuer is required to file
the same with the Commission, copies of the annual reports and copies of the
information, documents and other reports (or copies of such portions of any of
the foregoing as the Commission may from time to time by rules and
regulations prescribe) which the Issuer may be required to file with the
Commission pursuant to Section 13 or 15(d) of the Exchange Act;

 

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

 

(iii)                               supply
to the Indenture Trustee (and the Indenture Trustee shall transmit by mail to
all Noteholders described in TIA § 313(c)) such summaries of any
information, documents and reports required to be filed by the Issuer pursuant
to clauses (i) and (ii) of this Section 7.3(a) as may be
required by rules and regulations prescribed from time to time by the
Commission.

 

(b)                                 Unless
the Issuer otherwise determines, the fiscal year of the Issuer shall end on December 31
of each year.

 

(c)                                  The
Indenture Trustee shall not have any duty or obligation with respect to any
reports or other information delivered to it pursuant to this Section 7.3.

 

SECTION 7.4                          Reports
by Indenture Trustee.  If required by
TIA § 313(a), within 60 days after each March 31 beginning with March 31,
2006 the Indenture Trustee shall mail to each Noteholder as required by TIA § 313(c) a
brief report dated as of such date that complies with TIA § 313(a).  The Indenture Trustee also shall comply with
TIA § 313(b).

 

47

 

A copy of each report at
the time of its mailing to Noteholders shall be filed by the Indenture Trustee
with the Commission and each stock exchange, if any, on which the Notes are
listed.  The Issuer shall notify the
Indenture Trustee if and when the Notes are listed on any stock exchange.

 

ARTICLE VIII.

Accounts, Disbursements and Releases

 

SECTION 8.1                          Collection
of Money.  Except as otherwise
expressly provided herein, the Indenture Trustee may demand payment or delivery
of, and shall receive and collect, directly and without intervention or
assistance of any fiscal agent or other intermediary, all money and other
property payable to or receivable by the Indenture Trustee pursuant to this
Indenture and the Master Sale and Servicing Agreement.  The Indenture Trustee or the Note Paying
Agent on its behalf shall apply all such money received by it as provided in
this Indenture and the Series Supplement. 
Except as otherwise expressly provided in this Indenture or in the
Master Sale and Servicing Agreement, if any default occurs in the making of any
payment or performance under any agreement or instrument that is part of the Series Trust
Estate, the Indenture Trustee may, and at the direction of the Holders of the
Outstanding Amount of the Notes shall, take such action as may be appropriate
to enforce such payment or performance, including the institution and prosecution
of appropriate proceedings.  Any such
action shall be without prejudice to any right to claim a Default or Event of
Default under this Indenture and any right to proceed thereafter as provided in
Article V.

 

SECTION 8.2                          Release
of Series Trust Estate.

 

(a)                                  Subject
to the payment of its fees and expenses pursuant to Section 6.7, and to
the extent not covered by Section 8.2(b), the Indenture Trustee may, and
when required by the Issuer and the provisions of this Indenture shall, execute
instruments to release property from the lien of this Indenture, in a manner
and under circumstances that are not inconsistent with the provisions of this
Indenture.  No party relying upon an
instrument executed by the Indenture Trustee as provided in this Article VIII
shall be bound to ascertain the Indenture Trustee’s authority, inquire into the
satisfaction of any conditions precedent or see to the application of any
monies.

 

(b)                                 The
Indenture Trustee shall, at such time as there are no Notes Outstanding and all
sums due the Indenture Trustee pursuant to Section 6.7 have been paid,
release any remaining portion of the Series Trust Estate that secured the
Notes from the lien of this Indenture and release (or direct the Administrator
to release) to the Issuer or any other Person entitled thereto any funds then
on deposit in the Trust Accounts.  The
Indenture Trustee shall release property from the lien of this Indenture
pursuant to this Section 8.2(b) only upon receipt of an Issuer
Request accompanied by an Officer’s Certificate, an Opinion of Counsel and (if
required by the TIA) Independent Certificates in accordance with TIA §§ 314(c) and
314(d)(1) meeting the applicable requirements of Section 11.1.

 

48

 

SECTION 8.3                          Opinion
of Counsel.  The Indenture Trustee
shall receive at least seven days’ notice when requested by the Issuer to take
any action pursuant to Section 8.2(a), accompanied by copies of any
instruments involved, and the Indenture Trustee shall also require as a condition
to such action, an Opinion of Counsel, stating the legal effect of any such
action, outlining the steps required to complete the same, and concluding that
all conditions precedent to the taking of such action have been complied with
and such action will not materially and adversely impair the security for the
Notes or the rights of the Secured Parties in contravention of the provisions
of this Indenture; provided, however, that such Opinion of
Counsel shall not be required to express an opinion as to the fair value of the
Series Trust Estate.  Counsel
rendering any such opinion may rely, without independent investigation, on the
accuracy and validity of any certificate or other instrument delivered to the
Indenture Trustee in connection with any such action.

 

ARTICLE IX.

Amendments; the Series Supplement

 

SECTION 9.1                          Amendments
Without Consent of Noteholders.

 

(a)                                  Except
as otherwise provided in the Series Supplement, without the consent of the
Holders of any Notes and with prior written notice to the Rating Agencies, as
evidenced to the Indenture Trustee, the Administrator and the Issuer, when
authorized by an Issuer Order, at any time and from time to time, the parties
hereto may enter into one or more amendments hereto, in form satisfactory to
the Indenture Trustee, the Administrator and the Owner Trustee, for any of the
following purposes:

 

(i)                                     to
correct or amplify the description of any property at any time subject to the
lien of this Indenture, or better to assure, convey and confirm unto the Indenture
Trustee any property subject or required to be subjected to the lien of this
Indenture, or to subject to the lien of this Indenture additional property;

 

(ii)                                  to
evidence the succession, in compliance with the applicable provisions hereof,
of another person to the Issuer, and the assumption by any such successor of
the covenants of the Issuer herein and in the Notes contained;

 

(iii)                               to
add to the covenants of the Issuer, for the benefit of the Holders of the
Notes, or to surrender any right or power herein conferred upon the Issuer;

 

(iv)                              to
convey, transfer, assign, mortgage or pledge any property to or with the
Indenture Trustee;

 

(v)                                 to
cure any ambiguity, to correct or supplement any provision herein or in the Series Supplement
which may be inconsistent with any other provision herein or in the Series Supplement
or to make any other provisions with respect to matters or questions arising
under this Indenture or in the Series

 

49

 

Supplement; provided that such action shall not, as evidenced by
an Opinion of Counsel, adversely affect the interests of the Holders of the
Notes;

 

(vi)                              to
evidence and provide for the acceptance of the appointment hereunder by a
successor trustee with respect to the Notes and to add to or change any of the
provisions of this Indenture as shall be necessary to facilitate the
administration of the trusts hereunder by more than one trustee, pursuant to
the requirements of Article VI; or

 

(vii)                           to
modify, eliminate or add to the provisions of this Indenture to such extent as
shall be necessary to effect the qualification of this Indenture under the TIA
or under any similar federal statute hereafter enacted and to add to this
Indenture such other provisions as may be expressly required by the TIA.

 

The Indenture Trustee and
the Administrator are hereby authorized to join in the execution of any such amendment
and to make any further appropriate agreements and stipulations that may be
therein contained.

 

(b)                                 Except
as otherwise provided in the Series Supplement, the Issuer, the
Administrator and the Indenture Trustee, when authorized by an Issuer Order,
may, also without the consent of any of the Holders of the Notes and with prior
written notice to the Rating Agencies by the Issuer, as evidenced to the
Administrator and the Indenture Trustee, enter into an amendment hereto for the
purpose of adding any provisions to, or changing in any manner or eliminating
any of the provisions of, this Indenture or of modifying in any manner the rights
of the Holders of the Notes under this Indenture; provided, however,
that such action shall not, as evidenced by an Opinion of Counsel, adversely
affect in any material respect the interests of any Noteholder.

 

SECTION 9.2                          Amendments
With Consent of Noteholders.  Except
as otherwise provided in the Series Supplement, the Issuer, the
Administrator and the Indenture Trustee, when authorized by an Issuer Order
provided by the Master Servicer, also may, with prior written notice to the
Rating Agencies and with the consent of the Holders of not less than a majority
of the Outstanding Amount of each Class of Notes affected thereby, by Act
of such Holders delivered to the Issuer, the Administrator and the Indenture
Trustee, enter into an amendment hereto for the purpose of adding any
provisions to, or changing in any manner or eliminating any of the provisions
of, this Indenture or of modifying in any manner the rights of the Holders of
the Notes under this Indenture; provided, however, that no such
amendment shall, without the consent of the Holder of each Outstanding Note
affected thereby:

 

(i)                           change
the date of payment of any installment of principal of or interest on any Note,
or reduce the principal amount thereof, the interest rate thereon, change the provision
of this Indenture relating to the application of collections on, or the
proceeds of the sale of, the Series Trust Estate to payment of principal
of or interest on the Notes, or change any place of payment where, or the coin
or currency in which, any Note or the interest thereon is payable;

 

50

 

(ii)                        impair
the right to institute suit for the enforcement of the provisions of this
Indenture requiring the application of funds available therefor, as provided in
Article V, to the payment of any such amount due on the Notes on or after
the respective due dates thereof;

 

(iii)                     reduce
the percentage of the Outstanding Amount of the Notes, the consent of the
Holders of which is required for any such Series Supplement, or the
consent of the Holders of which is required for any waiver of compliance with
certain provisions of this Indenture or certain defaults hereunder and their
consequences provided for in this Indenture;

 

(iv)                    modify
or alter the provisions of the proviso to the definition of the term “Outstanding”;

 

(v)                       reduce
the percentage of the Outstanding Amount of the Notes required to direct the
Indenture Trustee to direct the Issuer to sell or liquidate the Series Trust
Estate pursuant to Section 4.03 of the Series Supplement;

 

(vi)                    modify
any provision of this Section except to increase any percentage specified
herein or to provide that certain additional provisions of this Indenture or
the Basic Documents cannot be modified or waived without the consent of the
Holder of each Outstanding Note affected thereby;

 

(vii)                 modify
any of the provisions of this Indenture in such manner as to affect the
calculation of the amount of any payment of interest or principal due on any
Note on any Distribution Date (including the calculation of any of the
individual components of such calculation) or to affect the rights of the
Holders of Notes to the benefit of any provisions for the mandatory redemption
of the Notes contained in the Series Supplement; or

 

(viii)              permit
the creation of any lien ranking prior to or on a parity with the lien of this
Indenture with respect to any part of the Series Trust Estate or, except
as otherwise permitted or contemplated herein or in the Series Supplement
or the Related Documents, terminate the lien of this Indenture on any property
at any time subject hereto or deprive the Holder of any Note of the security
provided by the lien of this Indenture.

 

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

 

Promptly after the
execution by the Issuer, the Administrator and the Indenture Trustee of any
amendment pursuant to this Section, the Indenture Trustee shall mail to the
Holders of the Notes to which such amendment relates a notice setting forth in
general terms the substance of such amendment. 
Any failure of the Indenture Trustee to mail such notice, or any defect
therein, shall not, however, in any way impair or affect the validity of any
such amendment.

 

51

 

Prior to the execution of
any amendment to this Indenture, the Indenture Trustee and the Administrator
shall be entitled to receive and rely upon an Opinion of Counsel stating that
the execution of such amendment is authorized or permitted by this
Indenture.  The Indenture Trustee and the
Administrator may, but shall not be obligated to, enter into any such amendment
which affects the Indenture Trustee’s or the Administrator’s, as the case may
be, own rights, duties or immunities, as the case may be, under this Indenture.

 

SECTION 9.3                          Series Supplement
Authorizing the Notes.

 

(a)                                  The
Notes issued hereunder shall be issued pursuant to the Series Supplement,
which shall set forth the terms and provisions of the Notes.

 

(b)                                 Amendments
to the Series Supplement shall be governed by the provisions of the Series Supplement.

 

SECTION 9.4                          Execution
of the Series Supplement.  The
Indenture Trustee and the Administrator shall be entitled to receive, and
subject to Sections 6.1 and 6.2, shall be fully protected in relying upon, an
Opinion of Counsel (and, if requested, an Officer’s Certificate) stating that
the execution of the Series Supplement is authorized or permitted by this
Indenture.

 

SECTION 9.5                          Effect
of Series Supplement.  Upon the
execution of the Series Supplement or any amendment pursuant to the
provisions of the Series Supplement or hereof, this Indenture shall be and
be deemed to be modified and amended in accordance therewith with respect to
the Notes affected thereby, and the respective rights, limitations of rights,
obligations, duties, liabilities and immunities under this Indenture of the
Indenture Trustee, the Issuer and the Holders of the Notes shall thereafter be
determined, exercised and enforced hereunder subject in all respects to such
modifications and amendments, and all the terms and conditions of the Series Supplement
or any amendment shall be and be deemed to be part of the terms and conditions
of this Indenture for any and all purposes.

 

SECTION 9.6                          Conformity
With Trust Indenture Act.  Every
amendment of this Indenture and the Series Supplement executed pursuant to
this Article IX shall conform to the requirements of the Trust Indenture
Act as then in effect so long as this Indenture shall then be qualified under
the Trust Indenture Act.

 

SECTION 9.7                          Reference
in Notes to the Series Supplement. 
Notes authenticated and delivered after the execution of the Series Supplement
pursuant to this Article IX may, and if required by the Issuer shall, bear
a notation as to any matter provided for in the Series Supplement.  If the Issuer shall so determine, new Notes
so modified as to conform, in the opinion of the Issuer, to the Series Supplement
may be prepared and executed by the Issuer and authenticated and delivered by
the Administrator in exchange for Outstanding Notes.

 

52

 

ARTICLE X.

[Reserved]

 

ARTICLE XI.

Miscellaneous

 

SECTION 11.1                    Compliance
Certificates and Opinions, etc.

 

(a)                                  Upon
any application or request by the Issuer to the Indenture Trustee or the
Administrator, as the case may be, to take any action under any provision of
this Indenture or the Series Supplement, the Issuer shall furnish to the
Indenture Trustee or the Administrator, as the case may be, (i) an Officer’s
Certificate stating that all conditions precedent, if any, provided for in this
Indenture or the Series Supplement relating to the proposed action have been
complied with, (ii) an Opinion of Counsel stating that in the opinion of
such counsel all such conditions precedent, if any, have been complied with and
(iii) (if required by the TIA) an Independent Certificate from a firm of
certified public accountants meeting the applicable requirements of this
Section, except that, in the case of any such application or request as to
which the furnishing of such documents is specifically required by any
provision of this Indenture or the Series Supplement, no additional
certificate or opinion need be furnished.

 

Every certificate or
opinion with respect to compliance with a condition or covenant provided for in
this Indenture or the Series Supplement shall include:

 

(i)                                     a
statement that each signatory of such certificate or opinion has read or has
caused to be read such covenant or condition and the definitions herein
relating thereto;

 

(ii)                                  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;

 

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

 

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

 

(b)                                 (i) 
Prior to the deposit of any property or securities with the Indenture Trustee (or
the Administrator on behalf of the Indenture Trustee) that is to be made the
basis for the release of any property or securities subject to the lien of this
Indenture and the Series Supplement, the Issuer shall, in addition to any
obligation imposed in Section 11.1(a) or elsewhere in this Indenture
or the Series Supplement, furnish to the Indenture Trustee an Officer’s
Certificate certifying or

 

53

 

stating the opinion of each person signing such certificate as to the
fair value (within 90 days of such deposit) to the Issuer of the property or
securities to be so deposited.

 

(ii)                                  Whenever
the Issuer is required to furnish to the Indenture Trustee an Officer’s
Certificate certifying or stating the opinion of any signer thereof as to the
matters described in clause (i) above, the Issuer shall also deliver to
the Indenture Trustee an Independent Certificate as to the same matters, if the
fair value to the Issuer of the securities to be so deposited and of all other
such securities made the basis of any such withdrawal or release since the
commencement of then-current fiscal year of the Issuer, as set forth in the
certificates delivered pursuant to clause (i) above and this clause (ii),
is 10% or more of the Outstanding Amount of the Notes; provided, that
such a certificate need not be furnished with respect to any securities so
deposited, if the fair value thereof to the Issuer as set forth in the related
Officer’s Certificate is less than $25,000 or less than 1% percent of the
Outstanding Amount of the Notes.

 

(iii)                               Other
than with respect to the release of any Repurchased Receivables or Liquidated
Receivables (as such terms are defined in the Master Sale and Servicing
Agreement), whenever any property or securities are to be released from the
lien of this Indenture and the Series Supplement, the Issuer shall also
furnish to the Indenture Trustee an Officer’s Certificate certifying or stating
the opinion of each person signing such certificate as to the fair value
(within 90 days of such release) of the property or securities proposed to be
released and stating that in the opinion of such person the proposed release
will not impair the security under this Indenture and the Series Supplement
in contravention of the provisions hereof.

 

(iv)                              Whenever
the Issuer is required to furnish to the Indenture Trustee an Officer’s
Certificate certifying or stating the opinion of any signer thereof as to the
matters described in clause (i) above, the Issuer shall also furnish to
the Indenture Trustee an Independent Certificate as to the same matters if the
fair value of the property or securities and of all other property other than
Repurchased Receivables and Defaulted Receivables (as such terms are defined in
the Master Sale and Servicing Agreement), or securities released from the lien
of this Indenture since the commencement of then current calendar year, as set
forth in the certificates required by clause (ii) above and this clause
(iv), equals 10% or more of the Outstanding Amount of the Notes; provided,
that such certificate need not be furnished in the case of any release of
property or securities if the fair value thereof as set forth in the related
Officer’s Certificate is less than $25,000 or less than 1 percent of then
Outstanding Amount of the Notes.

 

(v)                                 Notwithstanding
any other provision of this Section, the Issuer may (A) collect,
liquidate, sell or otherwise dispose of Receivables as and to the extent
permitted or required by the Basic Documents and (B) make cash payments
out of the Trust Accounts as and to the extent permitted or required by the
Basic Documents.

 

54

 

SECTION 11.2                    Form of
Documents Delivered to Indenture Trustee. 
In any case where several matters are required to be certified by, or
covered by an opinion of, any specified Person, it is not necessary that all
such matters be certified by, or covered by the opinion of, only one such
Person, or that they be so certified or covered by only one document, but one
such Person may certify or give an opinion with respect to some matters and one
or more other such Persons as to other matters, and any such Person may certify
or give an opinion as to such matters in one or several documents.

 

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

 

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

 

Whenever in this
Indenture or the Series Supplement, in connection with any application or
certificate or report to the Indenture Trustee, it is provided that the Issuer
shall deliver any document as a condition of the granting of such application,
or as evidence of the Issuer’s compliance with any term hereof, it is intended that
the truth and accuracy, at the time of the granting of such application or at
the effective date of such certificate or report (as the case may be), of the
facts and opinions stated in such document shall in such case be conditions
precedent to the right of the Issuer to have such application granted or to the
sufficiency of such certificate or report. 
The foregoing shall not, however, be construed to affect the Indenture
Trustee’s right to conclusively rely upon the truth and accuracy of any
statement or opinion contained in any such document as provided in Article VI.

 

SECTION 11.3                    Acts
of Noteholders.

 

(a)                                  Any
request, demand, authorization, direction, notice, consent, waiver or other
action provided by this Indenture to be given or taken by Noteholders may be
embodied in and evidenced by one or more instruments of substantially similar
tenor signed by such Noteholders in person or by agents duly appointed in
writing; and except as herein otherwise expressly provided such action shall
become effective when such instrument or instruments are delivered to the
Indenture Trustee, and, where it is hereby expressly required, to the
Issuer.  Such instrument or instruments
(and the action embodied therein and evidenced thereby) are herein sometimes
referred to as the “Act” of

 

55

 

the Noteholders signing such instrument or
instruments.  Proof of execution of any
such instrument or of a writing appointing any such agent shall be sufficient
for any purpose of this Indenture and (subject to Section 6.1) conclusive
in favor of the Indenture Trustee, the Administrator and the Issuer, if made in
the manner provided in this Section.

 

(b)                                 The
fact and date of the execution by any person of any such instrument or writing
may be proved in any customary manner of the Indenture Trustee.

 

(c)                                  The
ownership of Notes shall be proved by the Note Register.

 

(d)                                 Any
request, demand, authorization, direction, notice, consent, waiver or other
action by the Holder of any Notes shall bind the Holder of every Note issued
upon the registration thereof or in exchange therefor or in lieu thereof, in
respect of anything done, omitted or suffered to be done by the Indenture
Trustee or the Issuer in reliance thereon, whether or not notation of such
action is made upon such Note.

 

SECTION 11.4                    Notices,
etc., to Indenture Trustee, Issuer and Rating Agencies.  Any request, demand, authorization,
direction, notice, consent, waiver or Act of Noteholders or other documents
provided or permitted by this Indenture or the Series Supplement to be
made upon, given or furnished to or filed with:

 

(a)                                  The
Indenture Trustee by any Noteholder, the Issuer or the Administrator shall be
sufficient for every purpose hereunder if personally delivered, delivered by overnight
courier or mailed first-class and shall be deemed to have been duly given upon
receipt to the Indenture Trustee at its Corporate Trust Office,

 

(b)                                 The
Administrator by any Noteholder, the Issuer or the Indenture Trustee shall be
sufficient for every purpose hereunder if personally delivered, delivered by
overnight courier or mailed first-class and shall be deemed to have been duly
given upon receipt to the Administrator at its Corporate Trust Office,

 

(c)                                  The
Issuer by the Indenture Trustee or by any Noteholder shall be sufficient for
every purpose hereunder if personally delivered, delivered by facsimile or
overnight courier or mailed first class, and shall be deemed to have been duly
given upon receipt to the Issuer addressed to: 
HSBC Automotive Trust 2005-3, in care of the Owner Trustee at its
Corporate Trust Office, or at any other address previously furnished in writing
to the Indenture Trustee by the Issuer.  Each
of the Issuer and the Administrator shall promptly transmit any notice received
by it from the Noteholders to the Indenture Trustee.

 

Notices required to be
given to the Rating Agencies by the Issuer, the Indenture Trustee, the
Administrator or the Owner Trustee shall be in writing, personally delivered,
delivered by overnight courier or first class or via facsimile to (i) in
the case of Moody’s, at the following address: Moody’s Investors Service, Inc.,
99 Church Street, New York, New York 10004, Fax No:  (212) 553-0355, (ii) in the case of
S&P, at the following address: Standard & Poor’s Ratings Group, 55
Water Street, New York, New York 10041, Attention: Asset Backed Surveillance
Department, Fax No:  (212) 438-2649 and (iii) in
the case of Fitch, Inc., at the following address: One State Street Plaza,
New

 

56

 

York, New York
10004, Fax No. (212) 480-4438; or as to each of the foregoing, at such
other address as shall be designated by written notice to the other parties.

 

SECTION 11.5                    Notices
to Noteholders; Waiver.  Where this
Indenture or the Series Supplement provides for notice to Noteholders of
any event, such notice shall be sufficiently given (unless otherwise herein
expressly provided) if in writing and mailed, first-class, postage prepaid to
each Noteholder affected by such event, at his address as it appears on the
Note Register, not later than the latest date, and not earlier than the
earliest date, prescribed for the giving of such notice.  In any case where notice to Noteholders is
given by mail, neither the failure to mail such notice nor any defect in any
notice so mailed to any particular Noteholder shall affect the sufficiency of
such notice with respect to other Noteholders, and any notice that is mailed in
the manner herein provided shall conclusively be presumed to have been duly
given.

 

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

 

In case, by reason of the
suspension of regular mail service as a result of a strike, work stoppage or
similar activity, it shall be impractical to mail notice of any event to
Noteholders when such notice is required to be given pursuant to any provision
of this Indenture, then any manner of giving such notice as shall be
satisfactory to the Indenture Trustee shall be deemed to be a sufficient giving
of such notice.

 

Where this Indenture or
the Series Supplement provides for notice to the Rating Agencies, failure
to give such notice shall not affect any other rights or obligations created
hereunder, and shall not under any circumstance constitute a Default or Event
of Default.

 

SECTION 11.6                    Alternate
Payment and Notice Provisions. 
Notwithstanding any provision of this Indenture, the Series Supplement
or any of the Notes to the contrary, the Issuer may enter into any agreement
with any Holder of a Note providing for a method of payment, or notice by the
Indenture Trustee or any Note Paying Agent to such Holder, that is different
from the methods provided for in this Indenture or the Series Supplement
for such payments or notices, provided that such methods are reasonable and
consented to by the Indenture Trustee and the Note Paying Agent (which consent,
in each case, shall not be unreasonably withheld).  The Issuer will furnish to the Indenture
Trustee and the Note Paying Agent a copy of each such agreement and the
Indenture Trustee and the Note Paying Agent, as the case may be, will cause
payments to be made and notices to be given in accordance with such
agreements.  Any additional costs and
expenses incurred by the Indenture Trustee or the Note Paying Agent, as the
case may be, pursuant to this Section shall be a cost and expense of the
Indenture Trustee or the Administrator, respectively, pursuant to Section 3.03(a)(ii) of
the Series Supplement.

 

57

 

SECTION 11.7                    Conflict
with TIA.  If this Indenture is
qualified under the TIA and if any provision hereof limits, qualifies or
conflicts with a provision of the TIA that is required or deemed under the TIA to
be a part of and govern this Indenture, such required or deemed provision shall
control.  If any provision of this
Indenture modifies or excludes any provision of the TIA that may be so modified
or excluded, the latter provisions shall be deemed to apply to this Indenture
as so modified or to be excluded, as the case may be.

 

The provisions of TIA §§ 310
through 317 that impose duties on any person (including the provisions
automatically deemed included herein unless expressly excluded by this
Indenture) are a part of and govern this Indenture, whether or not physically
contained herein.

 

SECTION 11.8                    Effect
of Headings and Table of Contents. 
The Article and Section headings herein and the Table of
Contents are for convenience only and shall not affect the construction hereof.

 

SECTION 11.9                    Successors
and Assigns.  All covenants and
agreements in this Indenture and the Notes by the Issuer shall bind its
successors and assigns, whether so expressed or not.  All agreements of the Indenture Trustee in
this Indenture, the Series Supplement shall bind its successors.  All agreements of the Master Servicer in this
Indenture or the Series Supplement shall bind its successors and assigns.  All agreements of the Administrator in this
Indenture or the Series Supplement shall bind its successors and assigns.

 

SECTION 11.10              Separability.  In case any provision in this Indenture or in
the Notes shall be invalid, illegal or unenforceable, the validity, legality,
and enforceability of the remaining provisions shall not in any way be affected
or impaired thereby.

 

SECTION 11.11              Benefits
of Indenture.  Nothing in this
Indenture or the Series Supplement or in the Notes, express or implied,
shall give to any Person, other than the parties hereto and their successors
hereunder, and the Noteholders, and any other party secured hereunder, and any
other person with an ownership interest in any part of the Series Trust
Estate, any benefit or any legal or equitable right, remedy or claim under this
Indenture.

 

SECTION 11.12              Legal
Holidays.  In any case where the date
on which any payment is due shall not be a Business Day, then (notwithstanding
any other provision of the Notes, this Indenture or the Series Supplement)
payment need not be made on such date, but may be made on the next succeeding
Business Day with the same force and effect as if made on the date an which
nominally due, and no interest shall accrue for the period from and after any
such nominal date.

 

SECTION 11.13              GOVERNING
LAW.  THIS INDENTURE SHALL BE
CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK, WITHOUT
REFERENCE TO ITS CONFLICT OF LAWS PROVISIONS

 

58

 

WHICH WOULD
REQUIRE THE APPLICATION OF THE LAWS OF ANY OTHER JURISDICTION, AND THE
OBLIGATIONS, RIGHTS AND REMEDIES OF THE PARTIES HEREUNDER SHALL BE DETERMINED
IN ACCORDANCE WITH SUCH LAWS.

 

SECTION 11.14              Counterparts.  This Indenture may be executed in any number
of counterparts, each of which so executed shall be deemed to be an original,
but all such counterparts shall together constitute but one and the same
instrument.

 

SECTION 11.15              Recording
of Indenture.  If this Indenture or
the Series Supplement is subject to recording in any appropriate public
recording offices, such recording is to be effected by the Issuer and at its
expense accompanied by an Opinion of Counsel (which may be counsel to the Trust
or any other counsel reasonably acceptable to the Indenture Trustee) to the
effect that such recording is necessary either for the protection of the
Noteholders or any other person secured hereunder or for the enforcement of any
right or remedy granted to the Indenture Trustee under this Indenture or the Series Supplement.

 

SECTION 11.16              Trust
Obligation.  No recourse may be
taken, directly or indirectly, with respect to the obligations of the Issuer,
the Seller, the Master Servicer, the Owner Trustee, the Administrator or the
Indenture Trustee on the Notes or under this Indenture or the Series Supplement
or any certificate or other writing delivered in connection herewith or
therewith, against (i) the Seller, the Master Servicer, the Indenture Trustee,
the Administrator or the Owner Trustee in its individual capacity, (ii) any
owner of a beneficial interest in the Issuer or (iii) any partner, owner,
beneficiary, agent, officer, director, employee or agent of the Seller, the
Master Servicer, the Indenture Trustee, the Administrator or the Owner Trustee
in its individual capacity, any holder of a beneficial interest in the Issuer,
the Seller, the Master Servicer, the Indenture Trustee, the Administrator or
the Owner Trustee or of any successor or assign of the Seller, the Master
Servicer, the Indenture Trustee, the Administrator or the Owner Trustee in its
individual capacity, except as any such Person may have expressly agreed (it
being understood that the Indenture Trustee, the Administrator and the Owner
Trustee have no such obligations in their individual capacity) and except that
any such owner or beneficiary shall be fully liable, to the extent provided by
applicable law, for any unpaid consideration for stock, unpaid capital
contribution or failure to pay any installment or call owing to such entity.
For all purposes of this Indenture, in the performance of any duties or
obligations of the Issuer hereunder, the Owner Trustee shall be subject to, and
entitled to the benefits of, the terms and provisions of Articles VI, VII, and
VIII of the Trust Agreement.

 

SECTION 11.17              No
Petition.  The Indenture Trustee and
the Administrator, by entering into this Indenture, and each Noteholder, by
accepting a Note, hereby covenant and agree that they will not at any time
institute against the Seller, or the Issuer, or join in, cooperate with or
encourage others in connection with the institution against the Seller, or the
Issuer of, any bankruptcy, reorganization, arrangement, insolvency or
liquidation proceedings, or other proceedings under any United States federal
or state bankruptcy or similar law in connection with any obligations relating
to

 

59

 

the Notes, this
Indenture or any of the Basic Documents or any of the Related Documents.

 

SECTION 11.18              Limited
Recourse.

 

(a)                                  Notwithstanding
anything in the Related Documents to the contrary, the Notes constitute limited
recourse obligations of the Issuer and are limited in recourse to the Series Trust
Estate.  The Indenture Trustee, by
entering into this Indenture and the Series Supplement, and each
Noteholder agree that recourse for the Notes is limited to the Series Trust
Estate and, if the Series Trust Estate shall prove to be insufficient to
pay amounts due under the Notes, the Noteholders shall have no claim against
the assets of the Issuer or the Seller other than the Series Trust Estate.

 

(b)                                 If,
notwithstanding paragraph (a) above, the Noteholders are deemed to have
any interest in any asset of the Seller other than the Seller’s interest in the
Series Trust Estate, including any interest in assets of the Seller
pledged to secure debt obligations of the Seller other than the Notes, the
Indenture Trustee, by entering into this Indenture and the Series Supplement,
and each Noteholder agree that any such interest is subordinate to the claims
of the holders of any such debt obligations, and the Noteholders shall have no
rights in such assets until such other debt obligations are indefeasibly paid
in full.  The agreement of the Indenture
Trustee and the Noteholders pursuant to this Section 11.18(b) is
intended to constitute a subordination agreement for the purposes of Section 510(a) of
the Bankruptcy Code.

 

SECTION 11.19              Inspection.  The Issuer agrees that, on reasonable prior
notice, it will permit any representative of the Indenture Trustee, during the
Issuer’s normal business hours, to examine all the books of account, records,
reports, and other papers of the Issuer, to make copies and extracts therefrom,
to cause such books to be audited by independent certified public accountants,
and to discuss the Issuer’s affairs, finances and accounts with the Issuer’s
officers, employees, and independent certified public accountants, all at such
reasonable times and as often as may be reasonably requested.  The Indenture Trustee shall and shall cause
its representatives to hold in confidence all such information except to the
extent disclosure may be required by law (and all reasonable applications for
confidential treatment are unavailing) and except to the extent that the
Indenture Trustee may reasonably determine that such disclosure is consistent
with its Obligations hereunder.

 

SECTION 11.20              Limitation
of Liability.  It is expressly
understood and agreed by the parties hereto that (a) this Indenture is
executed and delivered by the Owner Trustee, not individually or personally but
solely as Owner Trustee of the Issuer under the Trust Agreement, in the
exercise of the powers and authority conferred and vested in it, (b) each
of the representations, undertakings and agreements herein made on the part of
the Issuer is made and intended not as personal representations, undertakings
and agreements by the Owner Trustee but is made and intended for the purpose of
binding only the Issuer, (c) nothing herein contained shall be construed
as creating any liability on the Owner Trustee individually or personally, to
perform any covenant either expressed or implied contained herein, all such
liability, if any, being expressly waived

 

60

 

by the parties to
this Indenture and by any person claiming by, through or under them and (d) under
no circumstances shall the Owner Trustee be personally liable for the payment
of any indebtedness or expenses of the Issuer or be liable for the breach or
failure of any obligation, representation, warranty or covenant made or
undertaking by the Issuer under this Indenture or any related documents.

 

[Signature Page Follows]

 

61

 

IN WITNESS WHEREOF, the
Issuer and the Indenture Trustee have caused this Indenture to be duly executed
by their respective officers, hereunto duly authorized, all as of the day and
year first above written.

 

	
   

  	
  HSBC AUTOMOTIVE
  TRUST 2005-3

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  U.S. BANK TRUST
  NATIONAL

  ASSOCIATION,

  
	
   

  	
   

  	
  not in its
  individual capacity but solely as

  Owner Trustee

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   /s/
  Patricia M. Child

  	
   

  
	
   

  	
   

  	
  Name: Patricia
  M. Child

  
	
   

  	
   

  	
  Title: Vice
  President

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  JPMORGAN CHASE
  BANK, N.A., not in its

  individual capacity but solely as Indenture Trustee

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   /s/ Keith
  R. Richardson

  	
   

  
	
   

  	
   

  	
  Name: Keith R.
  Richardson

  
	
   

  	
   

  	
  Title:
  Attorney-in-fact

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  HSBC BANK USA, NATIONAL ASSOCIATION,

  
	
   

  	
  as Administrator

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   /s/ Susie
  Moy

  	
   

  
	
   

  	
   

  	
  Name: Susie Moy

  
	
   

  	
   

  	
  Title: Vice
  President

  
					

 

 

Exhibit A

 

FORM OF TRANSFEREE CERTIFICATE

 

Pursuant to Section 2.4
of the Indenture dated as of November 3, 2005 between HSBC Automotive
Trust 2005-3, JPMorgan Chase Bank, N.A., a national banking association, and
HSBC Bank USA, National Association, a national banking association,                            (the
“Transferee”) hereby certifies on the date hereof that either (check
appropriate certification):

 

o            (i) the
Transferee is not (A) an employee benefit plan (within the meaning of Section 3(3) of
the Employee Retirement Income Security Act of 1974, as amended (“ERISA”)) that
is subject to Title I of ERISA or (B) a plan (within the meaning of Section 4975(e)(1) of
the Internal Revenue Code of 1986, as amended (the “Code”)) that is subject to Section 4975
of the Code (each of the foregoing, a “Plan”), and is not acting on behalf of
or investing the assets of a Plan; or

 

o            (ii) that
the Transferee’s acquisition and continued holding of the Definitive Note will
be covered by a prohibited transaction class exemption issued by the U.S.
Department of Labor.

 

 

	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  [Name of
  Transferee]

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