Document:

Exhibit 10.17

 

FORM OF RESTRICTED SHARE AWARD AGREEMENT

 

ZUOAN FASHION LIMITED
 2010 EQUITY INCENTIVE PLAN

 

RESTRICTED SHARE AWARD AGREEMENT

 

THIS AGREEMENT (the “Agreement”), is made effective as of the [    ] day of [    ], 2010 (hereinafter called the “Date of Grant”), between Zuoan Fashion Limited, a corporation incorporated in the Cayman Islands (hereinafter called the “Company”), and [Grantee]/[[    ](the “Trustee”, which expression shall, wherever the context so admits, includes all persons for the time being the trustee or trustees of the Trust Deed executed by the Company and [    ] on [    ] (the “Trust Deed”)) for the benefit of the individuals set forth on the schedule attached hereto as Exhibit A (each such individual, a “Participant” and, collectively, the “Participants”)]:

 

R E C I T A L S:

 

WHEREAS, the Company has adopted the Zuoan Fashion Limited 2010 Equity Incentive Plan (the “Plan”), which Plan is incorporated herein by reference and made a part of this Agreement.  Capitalized terms not otherwise defined herein shall have the same meanings as in the Plan; and

 

WHEREAS, the Committee has determined that it would be in the best interests of the Company and its shareholders to grant the restricted share award provided for herein (the “Restricted Share Award”) to the [Grantee]/[Trustee for the benefit of the Participants pursuant to the Plan, the Trust Deed and] the terms set forth herein.

 

NOW THEREFORE, in consideration of the mutual covenants hereinafter set forth, the parties agree as follows:

 

1.             Grant of the Restricted Shares.  Subject to the terms and conditions of the Plan and the additional terms and conditions set forth in this Agreement, the Company hereby grants to the [Grantee]/[Trustee] a Restricted Share Award consisting of [    ] Shares (hereinafter called the “Restricted Shares”). Subject to Section 7 hereof, the Restricted Shares shall vest and become nonforfeitable in accordance with Section 2 hereof.

 

2.             Vesting

 

(a)           Subject to a [Grantee]/[Participant]’s continued Employment with the Company, the Restricted Shares set aside on Exhibit B for the benefit of that [Grantee]/[Participant] shall vest and become nonforfeitable with respect to [    ] percent ([    %]) of those Restricted Shares [on each of the first, second, third, fourth and fifth] anniversaries  of the Date of Grant.  Notwithstanding the foregoing, in the event the above vesting schedule results in the vesting of any

 

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fractional Shares, such fractional Shares shall not be deemed vested hereunder but shall vest and become nonforfeitable when such fractional Shares aggregate whole Shares.

 

(b)           If a [Grantee]/[Participant]’s Employment with the Company is terminated as a result of the [Grantee]/[Participant]’s death or Disability that is due to work-related reasons, as described by the Committee in its sole discretion, the Restricted Shares set aside on Exhibit B for the benefit of that [Grantee]/[Participant]’s shall, to the extent not then vested and not previously forfeited, immediately become fully vested.

 

(c)           If a Participant’s Employment with the Company terminates for any reason other than the reason provided in Section 2(b) of this Agreement, the Restricted Shares set aside on Exhibit B for the benefit of that [Grantee]/[Participant]’s shall, to the extent not then vested, be forfeited by that [Grantee]/[Participant]’s without consideration.

 

(d)           Notwithstanding any other provision of this Agreement to the contrary, in the event of a Change in Control the Restricted Shares shall, to the extent not then vested and not previously forfeited, immediately become fully vested as contemplated by Section 9(b) of the Plan.

 

3.             Certificates. Certificates evidencing the Restricted Shares shall be issued by the Company and shall be registered in the name of the [Grantee]/[Trustee] on the register of members of the Company and shall be delivered to the [Grantee]/[Trustee] promptly after the date hereof.

 

4.             Rights as a Shareholder.  The  [Grantee]/[Trustee] shall be the registered holder of the Restricted Shares until or unless such Restricted Shares are vested or forfeited pursuant to Section 2 hereof, or repurchased by the Company pursuant to Section 7 hereof, and as registered holder shall, other than as provided in this Section 4, be entitled to all rights of a common shareholder of the Company, including, without limitation, voting rights with respect to the Restricted Shares.  Without limiting the generality of the foregoing, (i) no cash or in-kind dividends or other distributions shall be paid with respect to the Restricted Shares which have not previously vested, and (ii) the Restricted Shares shall be subject to the limitations on transfer and encumbrance set forth in Section 7 hereof.

 

5.             Legend on Certificates.  The certificates representing the Restricted Shares delivered to the [Grantee]/[Trustee] as contemplated by Section 3 above shall be subject to such stop transfer orders and other restrictions as the Committee may deem advisable under the Plan or the rules, regulations, and other requirements of the Securities and Exchange Commission, any stock exchange upon which such Shares are listed, and any applicable U.S. federal or state laws, or any other applicable laws, and the Committee may cause a legend or legends to be put on any such certificates to make appropriate reference to such restrictions.

 

6.             No Right to Continued Employment.  The granting of the Restricted Shares evidenced by this Agreement shall impose no obligation on the Company or any Affiliate to continue the Employment of any of the [Grantees]/[Participants] and shall not lessen or affect the Company’s or its Affiliate’s right to terminate the Employment of any or all of the [Grantees]/[Participants].

 

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7.             Transferability. Unless otherwise permitted by the Committee [(acting through the Managing Committee (as defined in the Trust Deed))], the Restricted Shares may not, at any time prior to becoming vested pursuant to Section 2, be assigned, alienated, pledged, attached, sold or otherwise transferred or encumbered by the [Grantee]/[Trustee], [a Participant] or any other Person and any such purported assignment, alienation, pledge, attachment, sale, transfer or encumbrance shall be void and unenforceable against the Company or any Affiliate; provided that the designation of a beneficiary shall not constitute an assignment, alienation, pledge, attachment, sale, transfer or encumbrance.

 

8.             Right of First Refusal.

 

(a)           Before any Restricted Shares held by the [Grantee]/[Trustee] may be sold or otherwise transferred (including transfer by gift or operation of law), the Company or its assignee(s) shall have a right of first refusal to purchase such Restricted Shares on the terms and conditions set forth in this Section 8.

 

(b)           Notice of Proposed Transfer.  The [Grantee]/[Trustee] shall (a) deliver to the Company a written notice (the “Notice”) stating: (i) the [Grantee]/[Trustee]’s bona fide intention to sell or otherwise transfer such Restricted Shares; (ii) the bona fide cash price for which the [Grantee]/[Trustee] proposes to transfer the Restricted Shares (the “Offered Price”); and (iii) the material terms and conditions of the proposed transfer (the “Offer Terms”) and (b) offer the Restricted Shares at the Offered Price and on the Offer Terms to the Company or its assignee(s).

 

(c)           Exercise of Right of First Refusal.  At any time within 30 days after receipt of the Notice, the Company and/or its assignee(s) may, by giving written notice to the [Grantee]/[Trustee], elect to purchase all, but not less than all, of the Restricted Shares proposed to be transferred, at the Offered Price and on the Offer Terms.

 

(d)           Payment of Purchase Price.  Payment of the purchase price for the Restricted Shares shall be made, at the option of the Company or its assignee(s), in cash (by check), by cancellation of all or a portion of any outstanding indebtedness of the [Grantee]/[Trustee] to the Company (or, in the case of repurchase by an assignee, to the assignee), or by any combination thereof, in any case in accordance with the Offer Terms, within thirty (30) days after delivery of the written notice by the Company as set forth in Section 8(c).

 

(e)           The [Grantee]/[Trustee]’s Right to Transfer.  If any or all of the Restricted Shares proposed in the Notice to be transferred are not purchased by the Company and/or its assignee(s) as provided in this Section 8, then the [Grantee]/[Trustee] may sell or otherwise transfer such Restricted Shares to the originally proposed transferee or to a third party at the Offered Price or at a higher price and on the Offer Terms, provided that such sale or other transfer is consummated within sixty (60) days after the date of the Notice.  If the Restricted Shares described in the Notice are not transferred within such period, a new Notice shall be given to the Company, and the Company and/or its assignees shall again be offered the right of first refusal before any Restricted Shares held by the [Grantee]/[Trustee] may be sold or otherwise transferred.

 

9.             Withholding. Subject to any limitations set forth in the Trust Deed, the [Grantee]/[Trustee] may be required to pay to the Company or any Affiliate and the Company shall

 

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have the right and is hereby authorized to withhold, any applicable withholding taxes in respect of the Restricted Shares, their grant or vesting or any payment or transfer with respect to the Restricted Shares and to take such action as may be necessary in the opinion of the Committee to satisfy all obligations for the payment of such withholding taxes.

 

10.           Securities Laws. Upon the vesting of any Restricted Shares, the [Grantee]/[Trustee] will make or enter into such written representations, warranties and agreements as the Committee (acting through the Committee) may reasonably request in order to comply with applicable securities laws or with this Agreement.

 

11.           Notices.  Any notice necessary under this Agreement shall be addressed to the Company in care of its Secretary at the principal executive office of the Company and to the [Grantee]/[Trustee] at the address appearing in the introductory paragraph of this Agreement or to either party at such other address as either party hereto may hereafter designate in writing to the other.  Any such notice shall be deemed effective upon receipt thereof by the addressee.

 

12.           Choice of Law. This Agreement shall be governed by and construed in accordance with the laws of Cayman Islands.

 

13.           Restricted Share Award Subject to Plan.  By entering into this Agreement the [Grantee]/[Trustee]  (or authorized fiduciary thereof) agrees and acknowledges that it has received and read a copy of the Plan.  The Restricted Share Award and the Restricted Shares granted hereunder are subject to the Plan and to the Trust Deed.  The terms and provisions of the Plan, as it may be amended from time to time, are hereby incorporated herein by reference.  In the event of a conflict between any term or provision contained herein and a term or provision of the Plan, the applicable terms and provisions of the Plan will govern and prevail.

 

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

 

[Signatures on next page.]

 

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

 

 

	
 
  	
Zuoan Fashion Limited
  
	
 
  	
 
  
	
 
  	
 
  
	
 
  	
 
  
	
 
  	
By:
  
	
 
  	
Its:
  
	
 
  	
 
  
	
 
  	
 
  
	
 
  	
[Grantee]/[Trustee]
  
	
 
  	
 
  
	
 
  	
 
  
	
 
  	
 
  
	
 
  	
By:
  
	
 
  	
Its:
  

 

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Exhibit A

 

TRUST DEED

 

6

 

Exhibit B

 

[SCHEDULE OF RESTRICTED SHARES GRANTED TO EACH OF THE PARTICIPANTS]

 

	
Name
  	
 
  	
Identification
 Number
  	
 
  	
Position Held in the
 Company or Its
 Subsidiaries
  	
 
  	
Number of Restricted
 Shares Awarded
  
	
 
  	
 
  	
 
  	
 
  	
 
  	
 
  	
 
  
	
 
  	
 
  	
 
  	
 
  	
 
  	
 
  	
 
  
	
 
  	
 
  	
 
  	
 
  	
 
  	
 
  	
 
  

 

7Exhibit 4.1

 

 

COBALT INTERNATIONAL ENERGY, INC.

 

as the Company

 

and

 

as Trustee

 

 

Senior Indenture

 

Dated as of               ,  20

 

 

 

TABLE OF CONTENTS

 

	
   

  	
  PAGE

  
	
   

  	
   

  
	
  ARTICLE 1

  
	
  DEFINITIONS AND
  INCORPORATION BY REFERENCE

  
	
   

  	
   

  
	
  Section 1.01.

  	
  Definitions

  	
  1

  
	
  Section 1.02. 

  	
  Other Definitions

  	
  6

  
	
  Section 1.03. 

  	
  Incorporation by Reference of
  Trust Indenture Act

  	
  6

  
	
  Section 1.04. 

  	
  Rules of Construction

  	
  7

  
	
   

  	
   

  
	
  ARTICLE 2

  
	
  THE SECURITIES

  
	
   

  	
   

  
	
  Section 2.01. 

  	
  Form and Dating

  	
  7

  
	
  Section 2.02. 

  	
  Execution And Authentication

  	
  7

  
	
  Section 2.03. 

  	
  Amount Unlimited; Issuable in
  Series

  	
  10

  
	
  Section 2.04. 

  	
  Denomination and Date of
  Securities; Payments of Interest

  	
  13

  
	
  Section 2.05. 

  	
  Registrar and Paying Agent;
  Agents Generally

  	
  13

  
	
  Section 2.06. 

  	
  Paying Agent to Hold Money in
  Trust

  	
  14

  
	
  Section 2.07. 

  	
  Transfer and Exchange

  	
  15

  
	
  Section 2.08. 

  	
  Replacement Securities

  	
  18

  
	
  Section 2.09. 

  	
  Outstanding Securities

  	
  19

  
	
  Section 2.10. 

  	
  Temporary Securities

  	
  20

  
	
  Section 2.11. 

  	
  Cancellation

  	
  20

  
	
  Section 2.12. 

  	
  CUSIP Numbers

  	
  21

  
	
  Section 2.13. 

  	
  Defaulted Interest

  	
  21

  
	
  Section 2.14. 

  	
  Series May Include
  Tranches

  	
  21

  
	
   

  	
   

  
	
  ARTICLE 3

  
	
  REDEMPTION

  
	
   

  	
   

  
	
  Section 3.01. 

  	
  Applicability of Article

  	
  22

  
	
  Section 3.02. 

  	
  Notice of Redemption; Partial
  Redemptions

  	
  22

  
	
  Section 3.03. 

  	
  Payment Of Securities Called For
  Redemption

  	
  24

  
	
  Section 3.04. 

  	
  Exclusion of Certain Securities
  from Eligibility for Selection for Redemption

  	
  25

  
	
  Section 3.05. 

  	
  Mandatory and Optional Sinking
  Funds

  	
  25

  
	
   

  	
   

  
	
  ARTICLE 4

  
	
  COVENANTS

  
	
   

  	
   

  
	
  Section 4.01. 

  	
  Payment of Securities

  	
  28

  

 

i

 

	
  Section 4.02. 

  	
  Maintenance of Office or Agency

  	
  29

  
	
  Section 4.03. 

  	
  Securityholders’ Lists

  	
  30

  
	
  Section 4.04. 

  	
  Certificate to Trustee

  	
  30

  
	
  Section 4.05. 

  	
  Reports by the Company

  	
  30

  
	
  Section 4.06. 

  	
  Additional Amounts

  	
  30

  
	
   

  	
   

  
	
  ARTICLE 5

  
	
  SUCCESSOR CORPORATION

  
	
   

  	
   

  
	
  Section 5.01. 

  	
  When Company May Merge, Etc.

  	
  31

  
	
  Section 5.02. 

  	
  Successor Substituted

  	
  32

  
	
   

  	
   

  
	
  ARTICLE 6

  
	
  DEFAULT AND REMEDIES

  
	
   

  	
   

  
	
  Section 6.01. 

  	
  Events of Default

  	
  32

  
	
  Section 6.02. 

  	
  Acceleration

  	
  33

  
	
  Section 6.03. 

  	
  Other Remedies

  	
  34

  
	
  Section 6.04. 

  	
  Waiver of Past Defaults

  	
  34

  
	
  Section 6.05. 

  	
  Control by Majority

  	
  35

  
	
  Section 6.06. 

  	
  Limitation on Suits

  	
  35

  
	
  Section 6.07. 

  	
  Rights of Holders to Receive
  Payment

  	
  36

  
	
  Section 6.08. 

  	
  Collection Suit by Trustee

  	
  36

  
	
  Section 6.09. 

  	
  Trustee May File Proofs of
  Claim

  	
  36

  
	
  Section 6.10. 

  	
  Application of Proceeds

  	
  37

  
	
  Section 6.11. 

  	
  Restoration of Rights and
  Remedies

  	
  38

  
	
  Section 6.12. 

  	
  Undertaking for Costs

  	
  38

  
	
  Section 6.13. 

  	
  Rights and Remedies Cumulative

  	
  38

  
	
  Section 6.14. 

  	
  Delay or Omission not Waiver

  	
  38

  
	
   

  	
   

  
	
  ARTICLE 7

  
	
  TRUSTEE

  
	
   

  	
   

  
	
  Section 7.01. 

  	
  General

  	
  39

  
	
  Section 7.02. 

  	
  Certain Rights of Trustee

  	
  39

  
	
  Section 7.03. 

  	
  Individual Rights of Trustee

  	
  41

  
	
  Section 7.04. 

  	
  Trustee’s Disclaimer

  	
  41

  
	
  Section 7.05. 

  	
  Notice of Default

  	
  41

  
	
  Section 7.06. 

  	
  Reports by Trustee to Holders

  	
  42

  
	
  Section 7.07. 

  	
  Compensation and Indemnity

  	
  42

  
	
  Section 7.08. 

  	
  Replacement of Trustee

  	
  43

  
	
  Section 7.09. 

  	
  Acceptance of Appointment by
  Successor

  	
  44

  
	
  Section 7.10. 

  	
  Successor Trustee By Merger, Etc.

  	
  45

  
	
  Section 7.11. 

  	
  Eligibility

  	
  45

  

 

ii

 

	
  Section 7.12. 

  	
  Money Held in Trust

  	
  45

  
	
   

  	
   

  
	
  ARTICLE 8

  
	
  SATISFACTION AND
  DISCHARGE OF INDENTURE; UNCLAIMED MONEYS

  
	
   

  	
   

  
	
  Section 8.01. 

  	
  Satisfaction and Discharge of
  Indenture

  	
  46

  
	
  Section 8.02. 

  	
  Application by Trustee of Funds
  Deposited for Payment of Securities

  	
  47

  
	
  Section 8.03. 

  	
  Repayment of Moneys Held by
  Paying Agent

  	
  47

  
	
  Section 8.04. 

  	
  Return of Moneys Held by Trustee
  and Paying Agent Unclaimed for Two Years

  	
  47

  
	
  Section 8.05. 

  	
  Defeasance and Discharge of
  Indenture

  	
  48

  
	
  Section 8.06. 

  	
  Defeasance of Certain
  Obligations

  	
  49

  
	
  Section 8.07. 

  	
  Reinstatement

  	
  51

  
	
  Section 8.08. 

  	
  Indemnity

  	
  51

  
	
  Section 8.09. 

  	
  Excess Funds

  	
  51

  
	
  Section 8.10. 

  	
  Qualifying Trustee

  	
  51

  
	
   

  	
   

  
	
  ARTICLE 9

  
	
  AMENDMENTS, SUPPLEMENTS
  AND WAIVERS

  
	
   

  	
   

  
	
  Section 9.01. 

  	
  Without Consent of Holders

  	
  52

  
	
  Section 9.02. 

  	
  With Consent of Holders

  	
  52

  
	
  Section 9.03. 

  	
  Revocation and Effect of Consent

  	
  54

  
	
  Section 9.04. 

  	
  Notation on or Exchange of
  Securities

  	
  54

  
	
  Section 9.05. 

  	
  Trustee to Sign Amendments, Etc.

  	
  54

  
	
  Section 9.06. 

  	
  Conformity with Trust Indenture
  Act

  	
  55

  
	
   

  	
   

  
	
  ARTICLE 10

  
	
  MISCELLANEOUS

  
	
   

  	
   

  
	
  Section 10.01. 

  	
  Trust Indenture Act of 1939

  	
  55

  
	
  Section 10.02. 

  	
  Notices

  	
  55

  
	
  Section 10.03. 

  	
  Certificate and Opinion as to
  Conditions Precedent

  	
  56

  
	
  Section 10.04. 

  	
  Statements Required in
  Certificate or Opinion

  	
  57

  
	
  Section 10.05. 

  	
  Evidence of Ownership

  	
  57

  
	
  Section 10.06. 

  	
  Rules by Trustee, Paying
  Agent or Registrar

  	
  58

  
	
  Section 10.07. 

  	
  Payment Date Other Than a
  Business Day

  	
  58

  
	
  Section 10.08. 

  	
  Governing Law

  	
  58

  
	
  Section 10.09. 

  	
  No Adverse Interpretation of
  Other Agreements

  	
  58

  
	
  Section 10.10. 

  	
  Successors

  	
  58

  
	
  Section 10.11. 

  	
  Duplicate Originals

  	
  59

  
	
  Section 10.12. 

  	
  Separability

  	
  59

  
	
  Section 10.13. 

  	
  Table of Contents, Headings, Etc.

  	
  59

  

 

iii

 

	
  Section 10.14. 

  	
  Incorporators, Stockholders,
  Officers and Directors of Company Exempt from Individual Liability

  	
  59

  
	
  Section 10.15. 

  	
  Judgment Currency

  	
  59

  

 

iv

 

SENIOR INDENTURE, dated as of         ,
20    , between Cobalt International Energy, Inc., a
Delaware corporation, as the Company, and                               ,
as Trustee.

 

RECITALS OF THE COMPANY

 

WHEREAS, the Company has duly authorized the issue
from time to time of its senior debentures, notes or other evidences of indebtedness
to be issued in one or more series (the “Securities”) up
to such principal amount or amounts as may from time to time be authorized in
accordance with the terms of this Indenture and to provide, among other things,
for the authentication, delivery and administration thereof, the Company has
duly authorized the execution and delivery of this Indenture; and

 

WHEREAS, all things necessary to make this
Indenture a valid indenture and agreement according to its terms have been
done;

 

NOW, THEREFORE:

 

In consideration of the premises and the purchases
of the Securities by the holders thereof, the Company and the Trustee mutually
covenant and agree for the equal and proportionate benefit of the respective
holders from time to time of the Securities or of any and all series thereof
and of the coupons, if any, appertaining thereto as follows:

 

ARTICLE 1

DEFINITIONS AND INCORPORATION BY REFERENCE

 

Section 1.01. 
Definitions.

 

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

 

“Agent” means any
Registrar, Paying Agent, transfer agent or Authenticating Agent.

 

“Authorized Newspaper”
means a newspaper (which, in the case of The City of New York, will, if
practicable, be The Wall Street Journal (Eastern

 

 

Edition) and in the case of London, will, if
practicable, be the Financial Times (London Edition) and published in an
official language of the country of publication customarily published at least
once a day for at least five days in each calendar week and of general
circulation in The City of New York or London, as applicable.  If it shall be impractical in the opinion of
the Trustee to make any publication of any notice required hereby in an
Authorized Newspaper, any publication or other notice in lieu thereof which is
made or given with the approval of the Trustee shall constitute a sufficient
publication of such notice.

 

“Board Resolution”
means one or more resolutions of the board of directors of the Company or any
authorized committee thereof, certified by the secretary or an assistant secretary
to have been duly adopted and to be in full force and effect on the date of
certification, and delivered to the Trustee.

 

“Business Day”
means any day, other than a Saturday or Sunday, that is neither a legal holiday
nor a day on which banking institutions are authorized or required by law or
regulation to close in The City of New York, with respect to any Security the
interest on which is based on the offered quotations in the interbank
Eurodollar market for dollar deposits in London, or with respect to Securities
denominated in a specified currency other than United States dollars, in the
principal financial center of the country of the specified currency.

 

“Capital Lease”
means, with respect to any Person, any lease of any property which, in conformity
with GAAP, is required to be capitalized on the balance sheet of such Person.

 

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

 

“Company” means
the party named as such in the first paragraph of this Indenture until a
successor replaces it pursuant to Article 5 of this Indenture and
thereafter means the successor.

 

“Corporate Trust Office”
means the office of the Trustee at which the corporate trust business of the
Trustee shall, at any particular time, be administered, which office is, at the
date of this Indenture, located at          
Attention:         .

 

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

 

2

 

“Depositary”
means, with respect to the Securities of any series issuable or issued in the
form of one or more Registered Global Securities, the Person designated as
Depositary by the Company pursuant to Section 2.03 until a successor
Depositary shall have become such pursuant to the applicable provisions of this
Indenture, and thereafter “Depositary”
shall mean or include each Person who is then a Depositary hereunder, and if at
any time there is more than one such Person, “Depositary”
as used with respect to the Securities of any such series shall mean the
Depositary with respect to the Registered Global Securities of that series.

 

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

 

“GAAP” means
generally accepted accounting principles in the U.S. as in effect as of the
date hereof applied on a basis consistent with the principles, methods,
procedures and practices employed in the preparation of the Company’s audited
financial statements, including, without limitation, those set forth in the opinions
and pronouncements of the Accounting Principles Board of the American Institute
of Certified Public Accountants and statements and pronouncements of the
Financial Accounting Standards Board or in such other statements by such other
entity as is approved by a significant segment of the accounting profession.

 

“Holder” or “Securityholder” means the registered holder of any Security
with respect to Registered Securities and the bearer of any Unregistered
Security or any coupon appertaining thereto, as the case may be.

 

“Indenture”
means this Indenture as originally executed and delivered or as it may be
amended or supplemented from time to time by one or more indentures
supplemental to this Indenture entered into pursuant to the applicable
provisions of this Indenture and shall include the forms and terms of the
Securities of each series established as contemplated pursuant to Sections 2.01
and 2.03.

 

“Officer” means,
with respect to the Company, the chairman of the board of directors, the
president or chief executive officer, any executive vice president, any senior
vice president, any vice president, the chief financial officer, the treasurer
or any assistant treasurer, or the secretary or any assistant secretary.

 

“Officers’ Certificate”
means a certificate signed in the name of the Company (i) by the chairman
of the board of directors, the president or chief executive officer, an
executive vice president, a senior vice president or a vice president, and (ii) by
the chief financial officer, the treasurer or any assistant treasurer, or the
secretary or any assistant secretary, and delivered to the Trustee.  Each such certificate shall comply with Section 314
of the Trust Indenture Act, if

 

3

 

applicable, and include (except as otherwise
expressly provided in this Indenture) the statements provided in Section 10.04,
if applicable.

 

“Opinion of Counsel”
means a written opinion signed by legal counsel, who may be an employee of or
counsel to the Company, satisfactory to the Trustee.  Each such opinion shall comply with Section 314
of the Trust Indenture Act, if applicable, and include the statements provided
in Section 10.04, if and to the extent required thereby.

 

“original issue date”
of any Security (or portion thereof) means the earlier of (a) the date of
authentication of such Security or (b) the date of any Security (or
portion thereof) for which such Security was issued (directly or indirectly) on
registration of transfer, exchange or substitution.

 

“Original Issue Discount
Security” means any Security that provides for an amount less than
the principal amount thereof to be due and payable upon a declaration of
acceleration of the maturity thereof pursuant to Section 6.02.

 

“Periodic Offering”
means an offering of Securities of a series from time to time, the specific
terms of which Securities, including, without limitation, the rate or rates of
interest, if any, thereon, the stated maturity or maturities thereof and the
redemption provisions, if any, with respect thereto, are to be determined by
the Company or its agents upon the issuance of such Securities.

 

“Person” means
an individual, a corporation, a partnership, a limited liability company, an
association, a trust or any other entity or organization, including a
government or political subdivision or an agency or instrumentality thereof.

 

“Principal” of a
Security means the principal amount of, and, unless the context indicates
otherwise, includes any premium payable on, the Security.

 

“Registered Global Security”
means a Security evidencing all or a part of a series of Registered Securities,
issued to the Depositary for such series in accordance with Section 2.02,
and bearing the legend prescribed in Section 2.02.

 

“Registered Security”
means any Security registered on the Security Register (as defined in Section 2.05).

 

“Responsible Officer”
when used with respect to the Trustee, shall mean an officer of the Trustee in
the Corporate Trust Office, having direct responsibility for the administration
of this Indenture, and also, with respect to a particular matter, any other
officer to whom such matter is referred because of such officer’s knowledge of
and familiarity with the particular subject.

 

4

 

“Securities”
means any of the securities, as defined in the first paragraph of the recitals
hereof, that are authenticated and delivered under this Indenture and, unless
the context indicates otherwise, shall include any coupon appertaining thereto.

 

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

 

“Subsidiary”
means, with respect to any Person, any corporation, association or other
business entity of which a majority of the capital stock or other ownership
interests having ordinary voting power to elect a majority of the board of
directors or other persons performing similar functions are at the time
directly or indirectly owned by such Person.

 

“Trustee” means
the party named as such in the first paragraph of this Indenture until a
successor replaces it in accordance with the provisions of Article 7 and
thereafter shall mean or include each Person who is then a Trustee hereunder,
and if at any time there is more than one such Person, “Trustee” as used with
respect to the Securities of any series shall mean the Trustee with respect to
Securities of that series.

 

“Trust Indenture Act”
means the Trust Indenture Act of 1939, as amended (15 U.S. Code §§
77aaa-77bbbb), as it may be amended from time to time.

 

“Unregistered Security”
means any Security other than a Registered Security.

 

“U.S. Government
Obligations” means securities that are (i) direct obligations
of the United States of America for the payment of which its full faith and
credit is pledged or (ii) obligations of an agency or instrumentality of
the United States of America the payment of which is unconditionally guaranteed
as a full faith and credit obligation by the United States of America, and
shall also include a depository receipt issued by a bank or trust company as
custodian with respect to any such U.S. Government Obligation or a specific
payment of interest on or principal of any such U.S. Government Obligation held
by such custodian for the account of the holder of a depository receipt;
provided that (except as required by law) such custodian is not authorized to
make any deduction from the amount payable to the holder of such depository
receipt from any amount received by the custodian in respect of the U.S.
Government Obligation or the specific payment of interest on or principal of
the U.S. Government Obligation evidenced by such depository receipt.

 

“Yield to Maturity”
means, as the context may require, the yield to maturity (i) on a series
of Securities or (ii) if the Securities of a series are issuable from time
to time, on a Security of such series, calculated at the time of issuance

 

5

 

of such series in the case of clause (i) or at
the time of issuance of such Security of such series in the case of clause
(ii), or, if applicable, at the most recent redetermination of interest on such
series or on such Security, and calculated in accordance with the constant
interest method or such other accepted financial practice as is specified in
the terms of such Security.

 

Section 1.02.  Other
Definitions.  Each of the following terms is defined in the section set forth opposite
such term:

 

	
  Term

  	
   

  	
  Section

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Authenticating Agent

  	
   

  	
  2.02

  	
   

  	
   

  
	
  Cash Transaction

  	
   

  	
  7.03

  	
   

  	
   

  
	
  Dollars

  	
   

  	
  4.02

  	
   

  	
   

  
	
  Event of Default

  	
   

  	
  6.01

  	
   

  	
   

  
	
  Judgment Currency

  	
   

  	
  10.15

  	
  (a)

  	
   

  
	
  mandatory sinking fund
  payment

  	
   

  	
  3.05

  	
   

  	
   

  
	
  optional sinking fund
  payment

  	
   

  	
  3.05

  	
   

  	
   

  
	
  Paying Agent

  	
   

  	
  2.05

  	
   

  	
   

  
	
  record date

  	
   

  	
  2.04

  	
   

  	
   

  
	
  Registrar

  	
   

  	
  2.05

  	
   

  	
   

  
	
  Required Currency

  	
   

  	
  10.15

  	
  (a)

  	
   

  
	
  Security Register

  	
   

  	
  2.05

  	
   

  	
   

  
	
  self-liquidating paper

  	
   

  	
  7.03

  	
   

  	
   

  
	
  sinking fund payment
  date

  	
   

  	
  3.05

  	
   

  	
   

  
	
  tranche

  	
   

  	
  2.14

  	
   

  	
   

  

 

Section 1.03. 
Incorporation by Reference of Trust Indenture Act.  Whenever
this Indenture refers to a provision of the Trust Indenture Act, the provision
is incorporated by reference in and made a part of this Indenture.  The following terms used in this Indenture
that are defined by the Trust Indenture Act have the following meanings:

 

“indenture securities”
means the Securities;

 

“indenture security holder”
means a Holder or a Securityholder;

 

“indenture to be qualified”
means this Indenture;

 

“indenture trustee”
or “institutional trustee” means the
Trustee; and

 

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

 

6

 

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

 

Section 1.04.  Rules of
Construction.  Unless the context otherwise requires:

 

(a)       an accounting term not
otherwise defined has the meaning assigned to it in accordance with GAAP;

 

(b)      words in the singular include
the plural, and words in the plural include the singular;

 

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

 

(d)      all references to Sections or
Articles refer to Sections or Articles of this Indenture unless otherwise
indicated; and

 

(e)       use of masculine, feminine
or neuter pronouns should not be deemed a limitation, and the use of any such
pronouns should be construed to include, where appropriate, the other pronouns.

 

ARTICLE 2

THE SECURITIES

 

Section 2.01.  Form and
Dating.  The
Securities of each series shall be substantially in such form or forms (not
inconsistent with this Indenture) as shall be established by or pursuant to one
or more Board Resolutions or in one or more indentures supplemental hereto, in
each case with such appropriate insertions, omissions, substitutions and other
variations as are required or permitted by this Indenture and may have
imprinted or otherwise reproduced thereon such legend or legends or
endorsements, not inconsistent with the provisions of this Indenture, as may be
required to comply with any law, or with any rules of any securities
exchange or usage, all as may be determined by the officers executing such
Securities as evidenced by their execution of the Securities.  Unless otherwise so established, Unregistered
Securities shall have coupons attached.

 

Section 2.02.  Execution
And Authentication.  Two Officers shall execute the Securities and one Officer shall execute
the coupons appertaining thereto for the Company by facsimile or manual
signature in the name and on behalf of the Company.  The seal of the Company, if any, shall be
reproduced on the Securities.

 

7

 

If an Officer whose signature is on a Security or
coupon appertaining thereto no longer holds that office at the time the
Security is authenticated, the Security and such coupon shall nevertheless be
valid.

 

The Trustee, at the expense of the Company, may
appoint an authenticating agent (the “Authenticating Agent”)
to authenticate Securities.  The
Authenticating Agent may authenticate Securities whenever the Trustee may do
so.  Each reference in this Indenture to
authentication by the Trustee includes authentication by such Authenticating
Agent.

 

A Security and the coupons appertaining thereto
shall not be valid until the Trustee or Authenticating Agent manually signs the
certificate of authentication on the Security or on the Security to which such
coupon appertains by an authorized officer. 
The signature shall be conclusive evidence that the Security or the
Security to which the coupon appertains has been authenticated under this
Indenture.

 

At any time and from time to time after the
execution and delivery of this Indenture, the Company may deliver Securities of
any series having attached thereto appropriate coupons, if any, executed by the
Company to the Trustee for authentication together with the applicable
documents referred to below in this Section, and the Trustee shall thereupon
authenticate and deliver such Securities to or upon the written order of the
Company.  In authenticating any
Securities of a series, the Trustee shall be entitled to receive prior to the
authentication of any Securities of such series, and (subject to Article 7)
shall be fully protected in relying upon, unless and until such documents have
been superseded or revoked:

 

(a)       any Board Resolution and/or
executed supplemental indenture referred to in Sections 2.01 and 2.03 by or
pursuant to which the forms and terms of the Securities of that series were
established;

 

(b)      an Officers’ Certificate
setting forth the form or forms and terms of the Securities, stating that the
form or forms and terms of the Securities of such series have been, or, in the
case of a Periodic Offering, will be when established in accordance with such
procedures as shall be referred to therein, established in compliance with this
Indenture; and

 

(c)       an Opinion of Counsel
substantially to the effect that the form or forms and terms of the Securities
of such series have been, or, in the case of a Periodic Offering, will be when
established in accordance with such procedures as shall be referred to therein,
established in compliance with this Indenture and that the supplemental
indenture, to the extent applicable, and Securities have been duly authorized
and, if executed and authenticated in accordance with the provisions of the
Indenture and delivered to and duly paid for by the purchasers thereof on 

 

8

 

the
date of such opinion, would be entitled to the benefits of the Indenture and
would be valid and binding obligations of the Company, enforceable against the
Company in accordance with their respective terms, subject to bankruptcy,
insolvency, reorganization, receivership, moratorium and other similar laws
affecting creditors’ rights generally, general principles of equity, and
covering such other matters as shall be specified therein and as shall be
reasonably requested by the Trustee.

 

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

 

Notwithstanding the provisions of Sections 2.01 and
2.02, if, in connection with a Periodic Offering, all Securities of a series
are not to be originally issued at one time, it shall not be necessary to
deliver the Board Resolution otherwise required pursuant to Section 2.01
or the written order, Officers’ Certificate and Opinion of Counsel otherwise
required pursuant to Section 2.02 at or prior to the authentication of
each Security of such series if such documents are delivered at or prior to the
authentication upon original issuance of the first Security of such series to
be issued.

 

With respect to Securities of a series offered in a
Periodic Offering, the Trustee may rely, as to the authorization by the Company
of any of such Securities, the forms and terms thereof and the legality,
validity, binding effect and enforceability thereof, upon the Opinion of
Counsel and the other documents delivered pursuant to Sections 2.01 and 2.02,
as applicable, in connection with the first authentication of Securities of
such series.

 

If the Company shall establish pursuant to Section 2.03
that the Securities of a series or a portion thereof are to be issued in the
form of one or more Registered Global Securities, then the Company shall
execute and the Trustee shall authenticate and deliver one or more Registered
Global Securities that (i) shall represent and shall be denominated in an
amount equal to the aggregate principal amount of all of the Securities of such
series issued in such form and not yet cancelled, (ii) shall be registered
in the name of the Depositary for such Registered Global Security or Securities
or the nominee of such Depositary, (iii) shall be delivered by the Trustee
to such Depositary or its custodian or pursuant to such Depositary’s
instructions and (iv) shall bear a legend substantially to the following
effect:  “Unless and until it is exchanged
in whole or in part for Securities in definitive registered form, this Security
may not be transferred except as a whole by the Depositary to the nominee of
the Depositary

 

9

 

or by a nominee of the Depositary to the Depositary
or another nominee of the Depositary or by the Depositary or any such nominee
to a successor Depositary or a nominee of such successor Depositary.”

 

Section 2.03.  Amount
Unlimited; Issuable in Series.  The aggregate principal amount of Securities which may be authenticated
and delivered under this Indenture is unlimited.

 

The Securities may be issued in one or more
series.  There shall be established in or
pursuant to Board Resolution or one or more indentures supplemental hereto,
prior to the initial issuance of Securities of any series, subject to the last
sentence of this Section 2.03,

 

(a)           the designation of the Securities of
the series, which shall distinguish the Securities of the series from the
Securities of all other series;

 

(b)           any limit upon the aggregate
principal amount of the Securities of the series that may be authenticated and
delivered under this Indenture and any limitation on the ability of the Company
to increase such aggregate principal amount after the initial issuance of the
Securities of that series (except for Securities authenticated and delivered
upon registration of transfer of, or in exchange for, or in lieu of, or upon
redemption of, other Securities of the series pursuant hereto);

 

(c)           the date or dates on which the
principal of the Securities of the series is payable (which date or dates may
be fixed or extendible);

 

(d)           the rate or rates (which may be fixed
or variable) per annum at which the Securities of the series shall bear
interest, if any, the date or dates from which such interest shall accrue, on
which such interest shall be payable and (in the case of Registered Securities)
on which a record shall be taken for the determination of Holders to whom
interest is payable and/or the method by which such rate or rates or date or
dates shall be determined;

 

(e)           if other than as provided in Section 4.02,
the place or places where the principal of and any interest on Securities of
the series shall be payable, any Registered Securities of the series may be
surrendered for exchange, notices, demands to or upon the Company in respect of
the Securities of the series and this Indenture may be served and notice to
Holders may be published;

 

(f)            the right, if any, of the Company to
redeem Securities of the series, in whole or in part, at its option and the
period or periods within which, the price or prices at which and any terms and
conditions upon which Securities of the series may be so redeemed, pursuant to
any sinking fund or otherwise;

 

10

 

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

 

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

 

(i)            if other than the principal amount
thereof, the portion of the principal amount of Securities of the series which
shall be payable upon declaration of acceleration of the maturity thereof;

 

(j)            if other than the coin or currency
in which the Securities of the series are denominated, the coin or currency in
which payment of the principal of or interest on the Securities of the series
shall be payable or if the amount of payments of principal of and/or interest
on the Securities of the series may be determined with reference to an index
based on a coin or currency other than that in which the Securities of the
series are denominated, the manner in which such amounts shall be determined;

 

(k)           if other than the currency of the
United States of America, the currency or currencies, including composite
currencies, in which payment of the Principal of and interest on the Securities
of the series shall be payable, and the manner in which any such currencies
shall be valued against other currencies in which any other Securities shall be
payable;

 

(l)            whether the Securities of the series
or any portion thereof will be issuable as Registered Securities (and if so,
whether such Securities will be issuable as Registered Global Securities) or
Unregistered Securities (with or without coupons) (and if so, whether such
Securities will be issued in temporary or permanent global form), or any
combination of the foregoing, any restrictions applicable to the offer, sale or
delivery of Unregistered Securities or the payment of interest thereon and, if
other than as provided herein, the terms upon which Unregistered Securities of
any series may be exchanged for Registered Securities of such series and vice
versa;

 

(m)          whether the Securities of the series
may be exchangeable for and/or convertible into the common stock of the Company
or any other security;

 

(n)           whether and under what circumstances
the Company will pay additional amounts on the Securities of the series held by
a person who is not a U.S. person in respect of any tax, assessment or
governmental charge withheld or

 

11

 

deducted and, if so, whether the Company will have
the option to redeem such Securities rather than pay such additional amounts;

 

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

 

(p)           any trustees, depositaries,
authenticating or paying agents, transfer agents or the registrar or any other
agents with respect to the Securities of the series;

 

(q)           provisions, if any, for the
defeasance of the Securities of the series (including provisions permitting
defeasance of less than all Securities of the series), which provisions may be
in addition to, in substitution for, or in modification of (or any combination
of the foregoing) the provisions of Article 8;

 

(r)            if the Securities of the series are
issuable in whole or in part as one or more Registered Global Securities or
Unregistered Securities in global form, the identity of the Depositary or
common Depositary for such Registered Global Security or Securities or
Unregistered Securities in global form;

 

(s)           any other Events of Default or
covenants with respect to the Securities of the series; and

 

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

 

All Securities of any one series and coupons, if
any, appertaining thereto shall be substantially identical, except in the case
of Registered Securities as to date and denomination, except in the case of any
Periodic Offering and except as may otherwise be provided by or pursuant to the
Board Resolution referred to above or as set forth in any such indenture supplemental
hereto.  All Securities of any one series
need not be issued at the same time and may be issued from time to time,
consistent with the terms of this Indenture, if so provided by or pursuant to
such Board Resolution or in any such indenture supplemental hereto and any
forms and terms of Securities to be issued from time to time may be completed
and established from time to time prior to the issuance thereof by procedures
described in such Board Resolution or supplemental indenture.

 

Unless otherwise expressly provided with respect to
a series of Securities, the aggregate principal amount of a series of
Securities may be increased and additional Securities of such series may be
issued up to the maximum aggregate principal amount authorized with respect to
such series as increased.

 

12

 

Section 2.04. 
Denomination and Date of Securities; Payments of Interest.  The
Securities of each series shall be issuable as Registered Securities or
Unregistered Securities in denominations established as contemplated by Section 2.03
or, if not so established with respect to Securities of any series, in
denominations of $1,000 and any integral multiple thereof.  The Securities of each series shall be
numbered, lettered or otherwise distinguished in such manner or in accordance
with such plan as the Officers of the Company executing the same may determine,
as evidenced by their execution thereof.

 

Unless otherwise specified with respect to a series
of Securities, each Security shall be dated the date of its
authentication.  The Securities of each
series shall bear interest, if any, from the date, and such interest and shall
be payable on the dates, established as contemplated by Section 2.03.

 

The person in whose name any Registered Security of
any series is registered at the close of business on any record date applicable
to a particular series with respect to any interest payment date for such
series shall be entitled to receive the interest, if any, payable on such
interest payment date notwithstanding any transfer or exchange of such
Registered Security subsequent to the record date and prior to such interest
payment date, except if and to the extent the Company shall default in the
payment of the interest due on such interest payment date for such series, in
which case the provisions of Section 2.13 shall apply.  The term “record date”
as used with respect to any interest payment date (except a date for payment of
defaulted interest) for the Securities of any series shall mean the date
specified as such in the terms of the Registered Securities of such series
established as contemplated by Section 2.03, or, if no such date is so
established, the fifteenth day next preceding such interest payment date,
whether or not such record date is a Business Day.

 

Section 2.05.  Registrar
and Paying Agent; Agents Generally.  The Company shall maintain an office or agency where Securities may be
presented for registration, registration of transfer or for exchange (the “Registrar”) and an office or agency where Securities may be
presented for payment (the “Paying Agent”),
which shall be in the Borough of Manhattan, The City of New York.  The Company shall cause the Registrar to keep
a register of the Registered Securities and of their registration, transfer and
exchange (the “Security Register”).  The Company may have one or more additional
Paying Agents or transfer agents with respect to any series.

 

The Company shall enter into an appropriate agency
agreement with any Agent not a party to this Indenture.  The agreement shall implement the provisions
of this Indenture and the Trust Indenture Act that relate to such Agent.  The Company shall give prompt written notice
to the Trustee of the name and address of any Agent and any change in the name or
address of an Agent.  If the 

 

13

 

Company fails to maintain a Registrar or Paying
Agent, the Trustee shall act as such. 
The Company may remove any Agent upon written notice to such Agent and
the Trustee; provided that no such removal
shall become effective until (i) the acceptance of an appointment by a
successor Agent to such Agent as evidenced by an appropriate agency agreement
entered into by the Company and such successor Agent and delivered to the Trustee
or (ii) notification to the Trustee that the Trustee shall serve as such
Agent until the appointment of a successor Agent in accordance with clause (i) of
this proviso.  The Company or any
affiliate of the Company may act as Paying Agent or Registrar; provided that neither the Company nor an affiliate of the
Company shall act as Paying Agent in connection with the defeasance of the
Securities or the discharge of this Indenture under Article 8.

 

The Company initially appoints the Trustee as
Registrar, Paying Agent and Authenticating Agent.  If, at any time, the Trustee is not the
Registrar, the Registrar shall make available to the Trustee ten days prior to
each interest payment date and at such other times as the Trustee may
reasonably request the names and addresses of the Holders as they appear in the
Security Register.

 

Section 2.06.  Paying
Agent to Hold Money in Trust.  Not later than 10:00 a.m. New York City time on each due date or,
in the case of Unregistered Securities, 10:00 a.m. New York City time on
the Business Day prior to the due date, of any Principal or interest on any
Securities, the Company shall deposit with the Paying Agent money in
immediately available funds sufficient to pay such Principal or interest.  The Company shall require each Paying Agent
other than the Trustee to agree in writing that such Paying Agent shall hold in
trust for the benefit of the Holders of such Securities or the Trustee all
money held by the Paying Agent for the payment of Principal of and interest on
such Securities and shall promptly notify the Trustee of any default by the
Company in making any such payment.  The
Company at any time may require a Paying Agent to pay all money held by it to
the Trustee and account for any funds disbursed, and the Trustee may at any
time during the continuance of any payment default, upon written request to a
Paying Agent, require such Paying Agent to pay all money held by it to the
Trustee and to account for any funds disbursed. 
Upon doing so, the Paying Agent shall have no further liability for the
money so paid over to the Trustee.  If
the Company or any affiliate of the Company acts as Paying Agent, it will, on
or before each due date of any Principal of or interest on any Securities,
segregate and hold in a separate trust fund for the benefit of the Holders
thereof a sum of money sufficient to pay such Principal or interest so becoming
due until such sum of money shall be paid to such Holders or otherwise disposed
of as provided in this Indenture, and will promptly notify the Trustee in
writing of its action or failure to act as required by this Section.

 

14

 

Section 2.07.  Transfer
and Exchange.  Unregistered Securities (except for any temporary global Unregistered
Securities) and coupons (except for coupons attached to any temporary global
Unregistered Securities) shall be transferable by delivery.

 

At the option of the Holder thereof, Registered
Securities of any series (other than a Registered Global Security, except as set
forth below) may be exchanged for a Registered Security or Registered
Securities of such series and tenor having authorized denominations and an
equal aggregate principal amount, upon surrender of such Registered Securities
to be exchanged at the agency of the Company that shall be maintained for such
purpose in accordance with Section 2.05 and upon payment, if the Company
shall so require, of the charges hereinafter provided.  If the Securities of any series are issued in
both registered and unregistered form, except as otherwise established pursuant
to Section 2.03, at the option of the Holder thereof, Unregistered
Securities of any series may be exchanged for Registered Securities of such
series and tenor having authorized denominations and an equal aggregate
principal amount, upon surrender of such Unregistered Securities to be
exchanged at the agency of the Company that shall be maintained for such
purpose in accordance with Section 4.02, with, in the case of Unregistered
Securities that have coupons attached, all unmatured coupons and all matured
coupons in default thereto appertaining, and upon payment, if the Company shall
so require, of the charges hereinafter provided.  At the option of the Holder thereof, if
Unregistered Securities of any series, maturity date, interest rate and
original issue date are issued in more than one authorized denomination, except
as otherwise established pursuant to Section 2.03, such Unregistered
Securities may be exchanged for Unregistered Securities of such series and
tenor having authorized denominations and an equal aggregate principal amount,
upon surrender of such Unregistered Securities to be exchanged at the agency of
the Company that shall be maintained for such purpose in accordance with Section 4.02,
with, in the case of Unregistered Securities that have coupons attached, all
unmatured coupons and all matured coupons in default thereto appertaining, and
upon payment, if the Company shall so require, of the charges hereinafter
provided.  Registered Securities of any
series may not be exchanged for Unregistered Securities of such series.  Whenever any Securities are so surrendered
for exchange, the Company shall execute, and the Trustee shall authenticate and
deliver, the Securities which the Holder making the exchange is entitled to
receive.

 

Upon surrender for registration of transfer of any
Registered Security of a series at the agency of the Company that shall be
maintained for that purpose in accordance with Section 2.05 and upon
payment, if the Company shall so require, of the charges hereinafter provided,
the Company shall execute, and the Trustee shall authenticate and deliver, in
the name of the designated transferee or

 

15

 

transferees, one or more new Registered Securities
of the same series, of any authorized denominations and of like tenor and
aggregate principal amount.

 

All Registered Securities presented for
registration of transfer, exchange, redemption or payment shall be duly
endorsed by, or be accompanied by a written instrument or instruments of
transfer in form satisfactory to the Company and the Trustee duly executed by,
the holder or his attorney duly authorized in writing.

 

The Company may require payment of a sum sufficient
to cover any tax or other governmental charge that may be imposed in connection
with any exchange or registration of transfer of Securities.  No service charge shall be made for any such
transaction.

 

Notwithstanding any other provision of this Section 2.07,
unless and until it is exchanged in whole or in part for Securities in
definitive registered form, a Registered Global Security representing all or a
portion of the Securities of a series may not be transferred except as a whole
by the Depositary for such series to a nominee of such Depositary or by a
nominee of such Depositary to such Depositary or another nominee of such
Depositary or by such Depositary or any such nominee to a successor Depositary
for such series or a nominee of such successor Depositary.

 

If at any time the Depositary for any Registered
Global Securities of any series notifies the Company that it is unwilling or
unable to continue as Depositary for such Registered Global Securities or if at
any time the Depositary for such Registered Global Securities shall no longer
be eligible under applicable law, the Company shall appoint a successor
Depositary eligible under applicable law with respect to such Registered Global
Securities.  If a successor Depositary
eligible under applicable law for such Registered Global Securities is not
appointed by the Company within 90 days after the Company receives such notice
or becomes aware of such ineligibility, the Company will execute, and the
Trustee, upon receipt of the Company’s order for the authentication and
delivery of definitive Registered Securities of such series and tenor, will
authenticate and deliver Registered Securities of such series and tenor, in any
authorized denominations, in an aggregate principal amount equal to the principal
amount of such Registered Global Securities, in exchange for such Registered
Global Securities.

 

The Company may at any time and in its sole
discretion and subject to the procedures of the Depositary determine that any
Registered Global Securities of any series shall no longer be maintained in
global form.  In such event the Company
will execute, and the Trustee, upon receipt of the Company’s order for the
authentication and delivery of definitive Registered Securities of such series
and 

 

16

 

tenor, will authenticate and deliver, Registered
Securities of such series and tenor in any authorized denominations, in an
aggregate principal amount equal to the principal amount of such Registered
Global Securities, in exchange for such Registered Global Securities.

 

Any time the Registered Securities of any series
are not in the form of Registered Global Securities pursuant to the preceding
two paragraphs, the Company agrees to supply the Trustee with a reasonable
supply of certificated Registered Securities without the legend required by Section 2.02
and the Trustee agrees to hold such Registered Securities in safekeeping until
authenticated and delivered pursuant to the terms of this Indenture.

 

If established by the Company pursuant to Section 2.03
with respect to any Registered Global Security, the Depositary for such
Registered Global Security may surrender such Registered Global Security in
exchange in whole or in part for Registered Securities of the same series and
tenor in definitive registered form on such terms as are acceptable to the
Company and such Depositary.  Thereupon,
the Company shall execute, and the Trustee shall authenticate and deliver,
without service charge,

 

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

 

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

 

Registered Securities issued in exchange for a
Registered Global Security pursuant to this Section 2.07 shall be
registered in such names and in such authorized denominations as the Depositary
for such Registered Global Security, pursuant to instructions from its direct
or indirect participants or otherwise, shall instruct the Trustee or an agent
of the Company or the Trustee.  The
Trustee or such agent shall deliver such Securities to or as directed by the
Persons in whose names such Securities are so registered.

 

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

 

17

 

Notwithstanding anything herein or in the forms or
terms of any Securities to the contrary, none of the Company, the Trustee or
any agent of the Company or the Trustee shall be required to exchange any
Unregistered Security for a Registered Security if such exchange would result
in adverse Federal income tax consequences to the Company (such as, for
example, the inability of the Company to deduct from its income, as computed
for Federal income tax purposes, the interest payable on the Unregistered
Securities) under then applicable United States Federal income tax laws.  The Trustee and any such agent shall be
entitled to rely on an Officers’ Certificate or an Opinion of Counsel in
determining such result.

 

The Registrar shall not be required (i) to
issue, authenticate, register the transfer of or exchange Securities of any
series for a period of 15 days before a selection of such Securities to be
redeemed or (ii) to register the transfer of or exchange any Security
selected for redemption in whole or in part.

 

Section 2.08. 
Replacement Securities.  If any mutilated Security or a Security with a mutilated coupon
appertaining to it is surrendered to the Trustee, the Company shall execute and
the Trustee shall authenticate and deliver, in exchange for such mutilated
Security or in exchange for the Security to which a mutilated coupon
appertains, a new Security of the same series and of like tenor and principal
amount and bearing a number not contemporaneously outstanding, with coupons
corresponding to the coupons, if any, appertaining to such mutilated Security
or to the Security to which such mutilated coupon appertains.

 

If there shall be delivered to the Company and the
Trustee (i) evidence to their satisfaction of the destruction, loss or
theft of any Security or coupon and (ii) such security or indemnity as may
be required by them to save each of them and any agent of any of them harmless,
then, in the absence of notice to the Company or the Trustee that such Security
or coupon has been acquired by a bona fide purchaser, the Company shall execute
and the Trustee shall authenticate and deliver, in lieu of any such destroyed,
lost or stolen Security or in exchange for the Security to which a destroyed,
lost or stolen coupon appertains (with all appurtenant coupons not destroyed,
lost or stolen), a new Security of the same series and of like tenor and
principal amount and bearing a number not contemporaneously outstanding, with
coupons corresponding to the coupons, if any, appertaining to such destroyed,
lost or stolen Security or to the Security to which such destroyed, lost or
stolen coupon appertains.

 

In case any such mutilated, destroyed, lost or
stolen Security or coupon has become or is about to become due and payable, the
Company in its discretion may, instead of issuing a new Security, pay such
Security or coupon (without surrender thereof except in the case of a mutilated
Security or coupon) if the applicant for such payment shall furnish to the
Company and the Trustee such 

 

18

 

security or indemnity as may be required by them to
save each of them and any agent of any of them harmless, and in the case of
destruction, loss or theft, evidence satisfactory to the Company and the
Trustee and any agent of them of the destruction, loss or theft of such
Security and the ownership thereof; provided, however,
that the Principal of and any interest on Unregistered Securities shall, except
as otherwise provided in Section 4.02, be payable only at an office or
agency located outside the United States of America.

 

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

 

Every new Security of any series, with its coupons,
if any, issued pursuant to this Section in lieu of any destroyed, lost or
stolen Security or in exchange for any mutilated Security, or in exchange for a
Security to which a mutilated, destroyed, lost or stolen coupon appertains,
shall constitute an original additional contractual obligation of the Company,
whether or not the mutilated, destroyed, lost or stolen Security and its
coupons, if any, or the mutilated, destroyed, lost or stolen coupon shall be at
any time enforceable by anyone, and any such new Security and coupons, if any,
shall be entitled to all the benefits of this Indenture equally and
proportionately with any and all other Securities of that series and their
coupons, if any, duly issued hereunder.

 

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

 

Section 2.09. 
Outstanding Securities.  Securities outstanding at any time are all Securities that have been
authenticated by the Trustee except for those cancelled by it, those delivered
to it for cancellation, those described in this Section as not outstanding
and those that have been defeased pursuant to Section 8.05.

 

If a Security is replaced pursuant to Section 2.08,
it ceases to be outstanding unless and until the Trustee and the Company
receive proof satisfactory to them that the replaced Security is held by a
holder in due course.

 

If the Paying Agent (other than the Company or an
affiliate of the Company) holds on the maturity date or any redemption date or
date for repurchase of the Securities money sufficient to pay Securities
payable or to be redeemed or repurchased on that date, then on and after that
date such Securities cease to be outstanding and interest on them shall cease
to accrue.

 

19

 

A Security does not cease to be outstanding because
the Company or one of its affiliates holds such Security, provided,
however, that, in determining whether the Holders of the requisite
principal amount of the outstanding Securities have given any request,
demand,  authorization, direction,
notice, consent or waiver hereunder, Securities owned by the Company or any
affiliate of the Company shall be disregarded and deemed not to be outstanding,
except that, in determining whether the Trustee shall be protected in relying
upon any such request, demand, authorization, direction, notice, consent or
waiver, only Securities as to which a Responsible Officer of the Trustee has
received written notice to be so owned shall be so disregarded.  Any Securities so owned which are pledged by
the Company, or by any affiliate of the Company, as security for loans or other
obligations, otherwise than to another such affiliate of the Company, shall be
deemed to be outstanding, if the pledgee is entitled pursuant to the terms of
its pledge agreement and is free to exercise in its or his discretion the right
to vote such securities, uncontrolled by the Company or by any such affiliate.

 

Section 2.10.  Temporary
Securities.  Until definitive Securities of any series are ready for delivery, the
Company may prepare and the Trustee shall authenticate temporary Securities of
such series.  Temporary Securities of any
series shall be substantially in the form of definitive Securities of such
series but may have insertions, substitutions, omissions and other variations
determined to be appropriate by the Officers executing the temporary
Securities, as evidenced by their execution of such temporary Securities.  If temporary Securities of any series are
issued, the Company will cause definitive Securities of such series to be
prepared without unreasonable delay. 
After the preparation of definitive

 

Securities of any series,
the temporary Securities of such series shall be exchangeable for definitive
Securities of such series and tenor upon surrender of such temporary Securities
at the office or agency of the Company 
designated for such purpose pursuant to Section 4.02, without
charge to the Holder.  Upon surrender for
cancellation of any one or more temporary Securities of any series the Company
shall execute and the Trustee shall authenticate and deliver in exchange
therefor a like principal amount of definitive Securities of such series and
tenor and authorized denominations. 
Until so exchanged, the temporary Securities of any series shall be
entitled to the same benefits under this Indenture as definitive Securities of
such series.

 

Section 2.11. 
Cancellation.  The Company at any time may deliver to the Trustee for cancellation any
Securities previously authenticated and delivered hereunder which the Company
may have acquired in any manner whatsoever, and may deliver to the Trustee for
cancellation any Securities previously authenticated hereunder which the
Company has not issued and sold.  The
Registrar, any transfer agent and the Paying Agent shall forward to the Trustee
any Securities surrendered to them for transfer, exchange or payment.  The Trustee shall cancel 

 

20

 

and dispose of in accordance with its customary
procedures all Securities surrendered for transfer, exchange, payment or
cancellation and shall deliver a certificate of disposition to the
Company.  The Company may not issue new
Securities to replace Securities it has paid in full or delivered to the
Trustee for cancellation.

 

Section 2.12.  CUSIP
Numbers.  The
Company in issuing the Securities may use “CUSIP” and “CINS” numbers (if then
generally in use), and the Trustee shall use CUSIP numbers or CINS numbers, as
the case may be, in notices of redemption or exchange as a convenience to
Holders and no representation shall be made as to the correctness of such  numbers either as printed on the Securities
or as contained  in any notice of
redemption or exchange.

 

Section 2.13.  Defaulted
Interest.  If the Company defaults in a payment of interest on the Registered
Securities, it shall pay, or shall deposit with the Paying Agent money in
immediately available funds sufficient to pay, the defaulted interest plus (to
the extent lawful) any interest payable on the defaulted interest (as may be
specified in the terms thereof, established pursuant to Section 2.03) to
the Persons who are Holders on a subsequent special record date, which shall
mean the 15th day next preceding the date fixed by the Company for the payment
of defaulted interest, whether or not such day is a Business Day.  At least 15 days before such special record
date, the Company shall mail to each Holder of such Registered Securities and
to the Trustee a notice that states the special record date, the payment date
and the amount of defaulted interest to be paid.

 

Section 2.14.  Series May Include
Tranches.  A series of Securities may include one or more tranches (each a “tranche”) of Securities, including Securities issued in a
Periodic Offering.  The Securities of
different tranches may have one or more different terms, including
authentication dates and public offering prices, but all the Securities within
each such tranche shall have identical terms, including authentication date and
public offering price.  Notwithstanding
any other provision of this Indenture, with respect to Sections 2.02 (other
than the fourth, sixth and seventh paragraphs thereof) through 2.04, 2.07,
2.08, 2.10, 3.01 through 3.05, 4.02, 6.01 through 6.14, 8.01 through 8.07, 9.02
and Section 10.07, if any series of Securities includes more than one
tranche, all provisions of such sections applicable to any series of Securities
shall be deemed equally applicable to each tranche of any series of Securities
in the same manner as though originally designated a series unless otherwise
provided with respect to such series or tranche pursuant to Section 2.03.  In particular, and without limiting the scope
of the next preceding sentence, any of the provisions of such sections which
provide for or permit action to be taken with respect to a series of Securities
shall also be deemed to provide for and permit such action to be taken instead only
with respect to Securities of one or more tranches within that series (and such

 

21

 

provisions shall be deemed satisfied thereby), even
if no comparable action is taken with respect to Securities in the remaining
tranches of that series.

 

ARTICLE 3

REDEMPTION

 

Section 3.01. 
Applicability of Article.  The provisions of this Article shall be applicable to the
Securities of any series which are redeemable before their maturity or to any
sinking fund for the retirement of Securities of a series except as otherwise
specified as contemplated by Section 2.03 for Securities of such series.

 

Section 3.02.  Notice of
Redemption; Partial Redemptions.  Notice of redemption to the Holders of Registered Securities of any
series to be redeemed as a whole or in part at the option of the Company shall
be given by mailing notice of such redemption by first class mail, postage
prepaid, at least 30 days and not more than 60 days prior to the date fixed for
redemption to such Holders of Registered Securities of such series at their
last addresses as they shall appear upon the registry books.  Notice of redemption to the Holders of
Unregistered Securities of any series to be redeemed as a whole or in part who
have filed their names and addresses with the Trustee pursuant to Section 313(c)(2) of
the Trust Indenture Act, shall be given by mailing notice of such redemption,
by first class mail, postage prepaid, at least 30 days and not more than 60
days prior to the date fixed for redemption, to such Holders at such addresses
as were so furnished to the Trustee (and, in the case of any such notice given
by the Company, the Trustee shall make such information available to the
Company for such purpose).  Notice of
redemption to all other Holders of Unregistered Securities of any series to be
redeemed as a whole or in part shall be published in an Authorized Newspaper in
The City of New York or with respect to any Security the interest on which is
based on the offered quotations in the interbank Eurodollar market for dollar
deposits in an Authorized Newspaper in London, in each case, once in each of
three successive calendar weeks, the first publication to be not less than 30
days nor more than 60 days prior to the date fixed for redemption.  Any notice which is mailed or published in
the manner herein provided shall be conclusively presumed to have been duly
given, whether or not the Holder receives the notice.  Failure to give notice by mail, or any defect
in the notice to the Holder of any Security of a series designated for
redemption as a whole or in part shall not affect the validity of the
proceedings for the redemption of any other Security of such series.

 

The notice of redemption to each such Holder shall
specify the principal amount of each Security of such series held by such
Holder to be redeemed, the CUSIP numbers of the Securities to be redeemed, the
date fixed for redemption, 

 

22

 

the redemption price, or if not then ascertainable,
the manner of calculation thereof, the place or places of payment, that payment
will be made upon presentation and surrender of such Securities and, in the
case of Securities with coupons attached thereto, of all coupons appertaining
thereto maturing after the date fixed for redemption, that such redemption is
pursuant to the mandatory or optional sinking fund, or both, if such be the
case, that interest accrued to the date fixed for redemption will be paid as
specified in such notice and that on and after said date interest thereon or on
the portions thereof to be redeemed will cease to accrue.  In case any Security of a series is to be
redeemed in part only, the notice of redemption shall state the portion of the
principal amount thereof to be redeemed and shall state that on and after the
date fixed for redemption, upon surrender of such Security, a new Security or
Securities of such series and tenor in principal amount equal to the unredeemed
portion thereof will be issued.

 

The notice of redemption of Securities of any
series to be redeemed at the option of the Company shall be given by the
Company or, at the Company’s request, by the Trustee in the name and at the
expense of the Company.

 

On or before 10:00 a.m. New York City time on
the redemption date or, in the case of Unregistered Securities, on or before
10:00 a.m. New York City time on the Business Day prior to the redemption
date specified in the notice of redemption given as provided in this Section,
the Company will deposit with the Trustee or with one or more Paying Agents
(or, if the Company is acting as its own Paying Agent, set aside, segregate and
hold in trust as provided in Section 2.06) an amount of money sufficient
to redeem on the redemption date all the Securities of such series so called
for redemption at the appropriate redemption price, together with accrued
interest to the date fixed for redemption. 
If all of the outstanding Securities of a series are to be redeemed, the
Company will deliver to the Trustee at least 10 days prior to the last date on
which notice of redemption may be given to Holders pursuant to the first
paragraph of this Section 3.02 (or such shorter period as shall be
acceptable to the Trustee) an Officers’ Certificate stating that all such
Securities are to be redeemed.  If less
than all the outstanding Securities of a series are to be redeemed, the Company
will deliver to the Trustee at least 15 days prior to the last date on which
notice of redemption may be given to Holders pursuant to the first paragraph of
this Section 3.02 (or such shorter period as shall be acceptable to the
Trustee) an Officers’ Certificate stating the aggregate principal amount of
such Securities to be redeemed.  In the
case of any redemption of Securities (a) prior to the expiration of any
restriction on such redemption provided in the terms of such Securities or
elsewhere in this Indenture, or (b) pursuant to an election of the Company
which is subject to a condition specified in the terms of such Securities or
elsewhere in this Indenture, the Company shall deliver to the Trustee, prior to
the giving of any notice of redemption to Holders pursuant to this
Section,  an Officers’ Certificate
evidencing compliance with such restriction or condition.

 

23

 

If less than all the Securities of a series are to
be redeemed, the Trustee shall select, pro rata, by lot or in such manner as it
shall deem appropriate and fair, Securities of such series to be redeemed in
whole or in part.  Securities may be
redeemed in part in principal amounts equal to authorized denominations for
Securities of such series.  The Trustee
shall promptly notify the Company in writing of the Securities of such series
selected for redemption and, in the case of any Securities of such series
selected for partial redemption, the principal amount thereof to be
redeemed.  For all purposes of this
Indenture, unless the context otherwise requires, all provisions relating to
the redemption of Securities shall relate, in the case of any Security redeemed
or to be redeemed only in part, to the portion of the principal amount of such
Security which has been or is to be redeemed.

 

Section 3.03.  Payment Of
Securities Called For Redemption.  If notice of redemption has been given as above provided, the Securities
or portions of Securities specified in such notice shall become due and payable
on the date and at the place stated in such notice at the applicable redemption
price, together with interest accrued to the date fixed for redemption, and on
and after such date (unless the Company shall default in the payment of such
Securities at the redemption price, together with interest accrued to such
date) interest on the Securities or portions of Securities so called for
redemption shall cease to accrue, and the unmatured coupons, if any,
appertaining thereto shall be void and, except as provided in Sections 7.12 and
8.02, such Securities shall cease from and after the date fixed for redemption
to be entitled to any benefit under this Indenture, and the Holders thereof
shall have no right in respect of such Securities except the right to receive
the redemption price thereof and unpaid interest to the date fixed for
redemption.  On presentation and
surrender of such Securities at a place of payment specified in said notice,
together with all coupons, if any, appertaining thereto maturing after the date
fixed for redemption, said Securities or the specified portions thereof shall
be paid and redeemed by the Company at the applicable redemption price, together
with interest accrued thereon to the date fixed for redemption; provided that
payment of interest becoming due on or prior to the date fixed for redemption
shall be payable in the case of Securities with coupons attached thereto, to
the Holders of the coupons for such interest upon surrender thereof, and in the
case of Registered Securities, to the Holders of such Registered Securities
registered as such on the relevant record date subject to the terms and
provisions of Sections 2.04 and 2.13 hereof.

 

If any Security called for redemption shall not be
so paid upon surrender thereof for redemption, the principal shall, until paid
or duly provided for, bear interest from the date fixed for redemption at the
rate of interest or Yield to Maturity (in the case of an Original Issue
Discount Security) borne by such Security.

 

24

 

If any Security with coupons attached thereto is
surrendered for redemption and is not accompanied by all appurtenant coupons
maturing after the date fixed for redemption, the surrender of such missing
coupon or coupons may be waived by the Company and the Trustee, if there be
furnished to each of them such security or indemnity as they may require to
save each of them harmless.

 

Upon presentation of any Security of any series
redeemed in part only, the Company shall execute and the Trustee shall
authenticate and deliver to or on the order of the Holder thereof, at the
expense of the Company, a new Security or Securities of such series and tenor
(with any unmatured coupons attached), of authorized denominations, in
principal amount equal to the unredeemed portion of the Security so presented.

 

Section 3.04.  Exclusion
of Certain Securities from Eligibility for Selection for Redemption.  Securities
shall be excluded from eligibility for selection for redemption if they are
identified by registration and certificate number in a written statement signed
by an authorized officer of the Company and delivered to the Trustee at least
40 days prior to the last date on which notice of redemption may be given as
being owned of record and beneficially by, and not pledged or hypothecated by,
either (a) the Company or (b) an entity specifically identified in
such written statement as directly or indirectly controlling or controlled by
or under direct or indirect common control with the Company.

 

Section 3.05.  Mandatory
and Optional Sinking Funds.  The minimum amount of any sinking fund payment provided for by the terms
of Securities of any series is herein referred to as a “mandatory
sinking fund payment”, and any payment in excess of such minimum
amount provided for by the terms of the Securities of any series is herein
referred to as an “optional sinking fund
payment”.  The date on which a
sinking fund payment is to be made is herein referred to as the “sinking fund payment date”.

 

In lieu of making all or any part of any mandatory
sinking fund payment with respect to any series of Securities in cash, the
Company may at its option (a) deliver to the Trustee Securities of such
series theretofore purchased or otherwise acquired (except through a mandatory
sinking fund payment) by the Company or receive credit for Securities of such
series (not previously so credited) theretofore purchased or otherwise acquired
(except as aforesaid) by the Company and delivered to the Trustee for
cancellation pursuant to Section 2.11, (b) receive credit for
optional sinking fund payments (not previously so credited) made pursuant to
this Section, or (c) receive credit for Securities of such series (not
previously so credited) redeemed by the Company at the option of the Company
pursuant to the terms of such Securities or through any optional sinking fund
payment.  Securities so delivered or
credited shall be received or credited by the Trustee at the sinking fund
redemption price specified in such Securities.

 

25

 

On or before the sixtieth day next preceding each
sinking fund payment date for any series, or such shorter period as shall be
acceptable to the Trustee, the Company will deliver to the Trustee an Officers’
Certificate (a) specifying the portion of the mandatory sinking fund
payment to be satisfied by payment of cash and the portion to be satisfied by
credit of specified Securities of such series and the basis for such credit, (b) stating
that none of the specified Securities of such series has theretofore been so
credited, (c) stating that no defaults in the payment of interest or
Events of Default with respect to such series have occurred (which have not
been waived or cured) and are continuing and (d) stating whether or not
the Company intends to exercise its right to make an optional sinking fund
payment with respect to such series and, if so, specifying the amount of such
optional sinking fund payment which the Company intends to pay on or before the
next succeeding sinking fund payment date. 
Any Securities of such series to be credited and required to be
delivered to the Trustee in order for the Company to be entitled to credit
therefor as aforesaid which have not theretofore been delivered to the Trustee
shall be delivered for cancellation pursuant to Section 2.11 to the
Trustee with such Officers’ Certificate (or reasonably promptly thereafter if
acceptable to the Trustee).  Such
Officers’ Certificate shall be irrevocable and upon its receipt by the Trustee
the Company shall become unconditionally obligated to make all the cash
payments or delivery of Securities therein referred to, if any, on or before
the next succeeding sinking fund payment date. 
Failure of the Company, on or before any such sixtieth day, to deliver
such Officer’s Certificate and Securities specified in this paragraph, if any,
shall not constitute a default but shall constitute, on and as of such date,
the irrevocable election of the Company (i) that the mandatory sinking
fund payment for such series due on the next succeeding sinking fund payment
date shall be paid entirely in cash without the option to deliver or credit
Securities of such series in respect thereof and (ii) that the Company
will make no optional sinking fund payment with respect to such series as
provided in this Section.

 

If the sinking fund payment or payments (mandatory
or optional or both) to be made in cash on the next succeeding sinking fund
payment date plus any unused balance of any preceding sinking fund payments
made in cash shall exceed $50,000 (or a lesser sum if the Company shall so
request with respect to the Securities of any series), such cash shall be
applied on the next succeeding sinking fund payment date to the redemption of
Securities of such series at the sinking fund redemption price thereof together
with accrued interest thereon to the date fixed for redemption.  If such amount shall be $50,000 (or such
lesser sum) or less and the Company makes no such request then it shall be
carried over until a sum in excess of $50,000 (or such lesser sum) is
available.  The Trustee shall select, in
the manner provided in Section 3.02, for redemption on such sinking fund
payment date a sufficient principal amount of Securities of such series to
absorb said cash, as nearly as may be, and shall (if requested in writing by
the Company) inform the Company of the serial numbers of the Securities of 

 

26

 

such series (or portions thereof) so selected.  Securities shall be excluded from eligibility
for redemption under this Section if they are identified by registration
and certificate number in an Officers’ Certificate delivered to the Trustee at
least 60 days prior to the sinking fund payment date as being owned of record
and beneficially by, and not pledged or hypothecated by either (a) the
Company or (b) an entity specifically identified in such Officers’
Certificate as directly or indirectly controlling or controlled by or under
direct or indirect common control with the Company.  The Trustee, in the name and at the expense
of the Company (or the Company, if it shall so request the Trustee in writing)
shall cause notice of redemption of the Securities of such series to be given
in substantially the manner provided in Section 3.02 (and with the effect
provided in Section 3.03) for the redemption of Securities of such series
in part at the option of the Company. 
The amount of any sinking fund payments not so applied or allocated to
the redemption of Securities of such series shall be added to the next cash
sinking fund payment for such series and, together with such payment, shall be
applied in accordance with the provisions of this Section.  Any and all sinking fund moneys held on the
stated maturity date of the Securities of any particular series (or earlier, if
such maturity is accelerated), which are not held for the payment or redemption
of particular Securities of such series shall be applied, together with other
moneys, if necessary, sufficient for the purpose, to the payment of the
Principal of, and interest on, the Securities of such series at maturity.

 

On or before 10:00 a.m. New York City time on
each sinking fund payment date or, in the case of Unregistered Securities,
10:00 a.m. New York City time on the Business Day prior to the sinking
fund payment date, the Company shall pay to the Trustee in cash or shall
otherwise provide for the payment of all interest accrued to the date fixed for
redemption on Securities to be redeemed on the next following sinking fund
payment date.

 

The Trustee shall not redeem or cause to be
redeemed any Securities of a series with sinking fund moneys or mail any notice
of redemption of Securities of such series by operation of the sinking fund
during the continuance of a Default in payment of interest on such Securities
or of any Event of Default except that, where the mailing of notice of
redemption of any Securities shall theretofore have been made, the Trustee
shall redeem or cause to be redeemed such Securities, provided that it shall
have received from the Company a sum sufficient for such redemption.  Except as aforesaid, any moneys in the
sinking fund for such series at the time when any such Default or Event of
Default shall occur, and any moneys thereafter paid into the sinking fund,
shall, during the continuance of such Default or Event of Default, be deemed to
have been collected under Article 6 and held for the payment of all such
Securities.  In case such Event of
Default shall have been waived as provided in Section 6.04 or the Default
cured on or before the sixtieth day preceding the sinking fund payment date in
any year, such 

 

27

 

moneys shall thereafter be applied on the next
succeeding sinking fund payment date in accordance with this Section to
the redemption of such Securities.

 

ARTICLE 4

COVENANTS

 

Section 4.01.  Payment of
Securities.  The Company shall pay the Principal of and interest on the Securities on
the dates and in the manner provided in the Securities and this Indenture.  The interest on Securities with coupons
attached (together with any additional amounts payable pursuant to the terms of
such Securities) shall be payable only upon presentation and surrender of the
several coupons for such interest installments as are evidenced thereby as they
severally mature.  The interest on any
temporary Unregistered Securities (together with any additional amounts payable
pursuant to the terms of such Securities) shall be paid, as to the installments
of interest evidenced by coupons attached thereto, if any, only upon
presentation and surrender thereof, and, as to the other installments of
interest, if any, only upon presentation of such Unregistered Securities for
notation thereon of the payment of such interest.  The interest on Registered Securities
(together with any additional amounts payable pursuant to the terms of such
Securities) shall be payable only to the Holders thereof (subject to Section 2.04)
and at the option of the Company may be paid by mailing checks for such
interest payable to or upon the written order of such Holders at their last
addresses as they appear on the Security Register of the Company.

 

Notwithstanding any provisions of this Indenture
and the Securities of any series to the contrary, if the Company and a Holder
of any Registered Security so agree, payments of interest on, and any portion
of the Principal of, such Holder’s Registered Security (other than interest
payable at maturity or on any redemption or repayment date or the final payment
of Principal on such Security) shall be made by the Paying Agent, upon receipt
from the Company of immediately available funds by 11:00 A.M., New York
City time (or such other time as may be agreed to between the Company and the
Paying Agent), directly to the Holder of such Security (by Federal funds wire
transfer or otherwise) if the Holder has delivered written instructions to the
Trustee 15 days prior to such payment date requesting that such payment will be
so made and designating the bank account to which such payments shall be so
made and in the case of payments of Principal, surrenders the same to the
Trustee in exchange for a Security or Securities aggregating the same principal
amount as the unredeemed principal amount of the Securities surrendered.  The Trustee shall be entitled to rely on the
last instruction delivered by the Holder pursuant to this Section 4.01
unless a new instruction is delivered 15 days prior to a payment date.  The Company will indemnify and hold each of
the Trustee and any Paying Agent harmless against any loss, liability or
expense (including attorneys’ fees) resulting from any act or omission to act
on 

 

28

 

the part of the Company or any such Holder in
connection with any such agreement or from making any payment in accordance
with any such agreement.

 

The Company shall pay interest on overdue
Principal, and interest on overdue installments of interest, to the extent
lawful, at the rate per annum specified in the Securities.

 

Section 4.02. 
Maintenance of Office or Agency.  The Company will maintain in the United States of America, an office or
agency where Securities may be surrendered for registration of transfer or
exchange or for presentation for payment and where notices and demands to or
upon the Company in respect of the Securities and this Indenture may be
served.  The Company hereby initially
designates the      , located in                    ,
as such office or agency of the Company. 
The Company will give prompt written notice to the Trustee of the
location, and any change in the location, of such office or agency.  If at any time the Company shall fail to
maintain any such required office or agency or shall fail to furnish the
Trustee with the address thereof, such presentations, surrenders, notices and
demands may be made or served at the address of the Trustee set forth in Section 10.02.

 

The Company will maintain one or more agencies in a
city or cities located outside the United States of America (including any city
in which such an agency is required to be maintained under the rules of
any stock exchange on which the Securities of any series are listed) where the
Unregistered Securities, if any, of each series and coupons, if any,
appertaining thereto may be presented for payment.  No payment on any Unregistered Security or
coupon will be made upon presentation of such Unregistered Security or coupon
at an agency of the Company within the United States of America nor will any
payment be made by transfer to an account in, or by mail to an address in, the
United States of America unless, pursuant to applicable United States laws and
regulations then in effect, such payment can be made without adverse tax
consequences to the Company. 
Notwithstanding the foregoing, if full payment in United States Dollars
(“Dollars”) at each agency maintained by
the Company outside the United States of America for payment on such
Unregistered Securities or coupons appertaining thereto is illegal or
effectively precluded by exchange controls or other similar restrictions,
payments in Dollars of Unregistered Securities of any series and coupons
appertaining thereto which are payable in Dollars may be made at an agency of
the Company maintained in the United States of America.

 

The Company may also from time to time designate
one or more other offices or agencies where the Securities of any series may be
presented or surrendered for any or all such purposes and may from time to time
rescind such designations; provided that no such designation or rescission
shall in any manner relieve the Company of its obligation to maintain an office
or agency in the 

 

29

 

United States of America for such purposes.  The Company will give prompt written notice
to the Trustee of any such designation or rescission and of any change in the
location of any such other office or agency.

 

Section 4.03. 
Securityholders’ Lists.  The Company will furnish or cause to be furnished to the Trustee a list
in such form as the Trustee may reasonably require of the names and addresses
of the holders of the Securities pursuant to Section 312 of the Trust
Indenture Act of 1939 (a) semi-annually not more than 15 days after each
record date for the payment of semi-annual interest on the Securities, as
hereinabove specified, as of such record date, and (b) at such other times
as the Trustee may request in writing, within thirty days after receipt by the
Company of any such request as of a date not more than 15 days prior to the
time such information is furnished.

 

Section 4.04.  Certificate
to Trustee.  The Company will furnish to the Trustee annually, on or before a date
not more than four months after the end of its fiscal year (which, on the date
hereof, is a calendar year), a brief certificate (which need not contain the
statements required by Section 10.04) from its principal executive,
financial or accounting officer as to his or her knowledge of the compliance of
the Company with all conditions and covenants under this Indenture (such
compliance to be determined without regard to any period of grace or
requirement of notice provided under this Indenture) which certificate shall
comply with the requirements of the Trust Indenture Act.

 

Section 4.05.  Reports by
the Company.  The Company covenants to file with the Trustee, within 15 days after the
Company files the same with the Commission, copies of the annual reports and of
the information, documents, and other reports which the Company may be required
to file with the Commission pursuant to Section 13 or Section 15(d) of
the Exchange Act.

 

Section 4.06.  Additional
Amounts.  If the Securities of
a series provide for the payment of additional amounts, at least 10 days prior
to the first interest payment date with respect to that series of Securities
and at least 10 days prior to each date of payment of Principal of or interest
on the Securities of that series if there has been a change with respect to the
matters set forth in the below-mentioned Officers’ Certificate, the Company
shall furnish to the Trustee and the principal paying agent, if other than the
Trustee, an Officers’ Certificate instructing the Trustee and such paying agent
whether such payment of Principal of or interest on the Securities of that
series shall be made to Holders of the Securities of that series without withholding
or deduction for or on account of any tax, assessment or other governmental
charge described in the Securities of that series. If any such withholding or
deduction shall be required, then such Officers’ Certificate shall specify by
country the amount, if any, required to be withheld or deducted on such
payments to such Holders and shall certify the fact that 

 

30

 

additional amounts will be payable and the amounts
so payable to each Holder, and the Company shall pay to the Trustee or such
paying agent the additional amounts required to be paid by this Section. The
Company covenants to indemnify the Trustee and any paying agent for, and to
hold them harmless against, any loss, liability or expense reasonably incurred
without negligence or bad faith on their part arising out of or in connection
with actions taken or omitted by any of them in reliance on any Officers’
Certificate furnished pursuant to this Section.

 

Whenever in this Indenture there is mentioned, in
any context, the payment of the Principal of or interest or any other amounts
on, or in respect of, any Security of any series, such mention shall be deemed
to include mention of the payment of additional amounts provided by the terms
of such series established hereby or pursuant hereto to the extent that, in
such context, additional amounts are, were or would be payable in respect
thereof pursuant to such terms, and express mention of the payment of
additional amounts (if applicable) in any provision hereof shall not be
construed as excluding the payment of additional amounts in those provisions
hereof where such express mention is not made.

 

ARTICLE 5

SUCCESSOR CORPORATION

 

Section 5.01.  When
Company May Merge, Etc.  The Company shall not consolidate with, merge with or into, or sell,
convey, transfer, lease or otherwise dispose of all or substantially all of its
property and assets (in one transaction or a series of related transactions)
to, any Person unless  either (x) the
Company shall be the continuing Person or (y) the Person (if other than
the Company) formed by such consolidation or into which the Company is merged
or to which properties and assets of the Company shall be sold, conveyed,
transferred or leased shall be a Person organized and validly existing under
the laws of the United States of America or any jurisdiction thereof and shall
expressly assume, by a supplemental indenture, executed and delivered to the
Trustee, all of the obligations of the Company on all of the Securities and
under this Indenture and the Company in the case of clauses (x) and (y) shall
have delivered to the Trustee (A) an Opinion of Counsel stating that such
consolidation, merger or sale, conveyance, transfer or lease and such
supplemental indenture (if any) complies with this provision and that all
conditions precedent provided for herein relating to such transaction have been
complied with and that such supplemental indenture (if any) constitutes the
legal, valid and binding obligation of the Company and such successor
enforceable against such entity in accordance with its terms, subject to
customary exceptions and (B) an Officers’ Certificate to the effect that
immediately after giving effect to such transaction, no Default shall have
occurred and be continuing.

 

31

 

Section 5.02.  Successor
Substituted.  Upon any consolidation or merger, or any sale, conveyance, transfer,
lease or other disposition of all or substantially all of the property and
assets of the Company in accordance with Section 5.01 of this Indenture,
the successor Person formed by such consolidation or into which the Company is
merged or to which such sale, conveyance, transfer, lease or other disposition
is made shall succeed to, and be substituted for, and may exercise every right
and power of, the Company under this Indenture with the same effect as if such
successor Person had been named as the Company herein and thereafter the
predecessor Person, except in the case of a lease, shall be relieved of all
obligations and covenants under this Indenture and the Securities.

 

ARTICLE 6

DEFAULT AND REMEDIES

 

Section 6.01.  Events of
Default.  An
“Event of Default” shall occur with
respect to the Securities of any series if:

 

(a)        the Company defaults in the
payment of the Principal of any Security of such series when the same becomes
due and payable at maturity, upon acceleration, redemption or mandatory
repurchase, including as a sinking fund installment, or otherwise;

 

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

 

(c)        the Company defaults in the
performance of or breaches any other covenant or agreement of the Company in
this Indenture with respect to any Security of such series or in the Securities
of such series and such default or breach continues for a period of 30
consecutive days after written notice to the Company by the Trustee or to the
Company and the Trustee by the Holders of 25% or more in aggregate principal
amount of the Securities of all series affected thereby specifying such default
or breach and requiring it to be remedied and stating that such notice is a “Notice
of Default” hereunder;

 

(d)        a court having jurisdiction
in the premises shall enter a decree or order for relief in respect of the
Company in an involuntary case under any applicable bankruptcy, insolvency or
other similar law now or hereafter in effect, or appointing a receiver,
liquidator, assignee, custodian, trustee, sequestrator (or similar official) of
the Company or for any substantial part of its property or ordering the winding
up or liquidation of its affairs, and such decree or order shall remain
unstayed and in effect for a period of 60 consecutive days;

 

32

 

(e)        the Company (i) commences
a voluntary case under any applicable bankruptcy, insolvency or other similar
law now or hereafter in effect, or consents to the entry of an order for relief
in an involuntary case under any such law, (ii) consents to the
appointment of or taking possession by a receiver, liquidator, assignee,
custodian, trustee, sequestrator or similar official of the Company or for all
or substantially all of the property and assets of the Company or (iii) effects
any general assignment for the benefit of creditors; or

 

(f)         any other Event of Default
established pursuant to Section 2.03 with respect to the Securities of
such series occurs.

 

Section 6.02. 
Acceleration.  (a) If an Event of Default other than as described in clauses (d) or
(e) of Section 6.01 with respect to the Securities of any series then
outstanding occurs and is continuing, then, and in each and every such case,
except for any series of Securities the principal of which shall have already
become due and payable, either the Trustee or the Holders of not less than 25%
in aggregate principal amount of the Securities of any such series then
outstanding hereunder (all such series voting together as a single class) by
notice in writing to the Company (and to the Trustee if given by
Securityholders), may declare the entire principal (or, if the Securities of
any such series are Original Issue Discount Securities, such portion of the
principal amount as may be specified in the terms of such series established
pursuant to Section 2.03) of all Securities of such series, and the
interest accrued thereon, if any, to be due and payable immediately, and upon
any such declaration the same shall become immediately due and payable.

 

(b)        If an Event of Default
described in clause (d) or (e) of Section 6.01 occurs and is
continuing, then the principal amount (or, if any Securities are Original Issue
Discount Securities, such portion of the principal as may be specified in the
terms thereof established pursuant to Section 2.03) of all the Securities
then outstanding and interest accrued thereon, if any, shall be and become
immediately due and payable, without any notice or other action by any Holder
or the Trustee, to the full extent permitted by applicable law.

 

The foregoing provisions, however, are subject to
the condition that if, at any time after the principal (or, if the Securities
are Original Issue Discount Securities, such portion of the principal as may be
specified in the terms thereof established pursuant to Section 2.03) of
the Securities of any series (or of all the Securities, as the case may be)
shall have been so declared or become due and payable, and before any judgment
or decree for the payment of the moneys due shall have been obtained or entered
as hereinafter provided, the Company shall pay or shall deposit with the
Trustee a sum sufficient to pay all matured installments of interest upon all
the Securities of each such series (or of all the Securities, as the case may
be) and the principal of any and all Securities of each such series (or of all
the Securities, as the case may be) which shall have become 

 

33

 

due otherwise than by acceleration (with interest
upon such principal and, to the extent that payment of such interest is
enforceable under applicable law, on overdue installments of interest, at the
same rate as the rate of interest or Yield to Maturity (in the case of Original
Issue Discount Securities) specified in the Securities of each such series to
the date of such payment or deposit) and such amount as shall be sufficient to
cover all amounts owing the Trustee under Section 7.07, and if any and all
Events of Default under the Indenture, other than the non-payment of the
principal of Securities which shall have become due by acceleration, shall have
been cured, waived or otherwise remedied as provided herein, then and in every
such case the Holders of a majority in aggregate principal amount of all the then
outstanding Securities of all such series that have been accelerated (voting as
a single class), by written notice to the Company and to the Trustee, may waive
all defaults with respect to all such series (or with respect to all the
Securities, as the case may be) and rescind and annul such declaration and its
consequences, but no such waiver or rescission and annulment shall extend to or
shall affect any subsequent default or shall impair any right consequent
thereon.

 

For all purposes under this Indenture, if a portion
of the principal of any Original Issue Discount Securities shall have been
accelerated and declared or become due and payable pursuant to the provisions
hereof, then, from and after such declaration, unless such declaration has been
rescinded and annulled, the principal amount of such Original Issue Discount
Securities shall be deemed, for all purposes hereunder, to be such portion of
the principal thereof as shall be due and payable as a result of such
acceleration, and payment of such portion of the principal thereof as shall be
due and payable as a result of such acceleration, together with interest, if
any, thereon and all other amounts owing thereunder, shall constitute payment
in full of such Original Issue Discount Securities.

 

Section 6.03.  Other
Remedies.  If a payment default or an Event of Default with respect to the
Securities of any series occurs and is continuing, the Trustee may pursue, in
its own name or as trustee of an express trust, any available remedy by
proceeding at law or in equity to collect the payment of Principal of and
interest on the Securities of such series or to enforce the performance of any
provision of the Securities of such series or this Indenture.

 

The Trustee may maintain a proceeding even if it
does not possess any of the Securities or does not produce any of them in the
proceeding.

 

Section 6.04.  Waiver of
Past Defaults.  Subject to Sections 6.02, 6.07 and 9.02, the Holders of at least a
majority in principal amount (or, if the Securities are Original Issue Discount
Securities, such portion of the principal as is then accelerable under Section 6.02)
of the outstanding Securities of all series affected (voting as a single
class), by notice to the Trustee, may waive an existing Default 

 

34

 

or Event of Default with respect to the Securities
of such series and its consequences, except a Default in the payment of
Principal of or interest on any Security as specified in clauses (a) or (b) of
Section 6.01 or in respect of a covenant or provision of this Indenture
which cannot be modified or amended without the consent of the Holder of each
outstanding Security affected.  Upon any
such waiver, such Default shall cease to exist, and any Event of Default with
respect to the Securities of such series 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 Event of Default or impair any
right consequent thereto.

 

Section 6.05.  Control by
Majority.  Subject to Sections 7.01 and 7.02(e), the Holders of at least a majority
in aggregate principal amount (or, if any Securities are Original Issue
Discount Securities, such portion of the principal as is then accelerable under
Section 6.02) of the outstanding Securities of all series affected (voting
as a single class) may direct the time, method and place of conducting any
proceeding for any remedy available to the Trustee or exercising any trust or
power conferred on the Trustee with respect to the Securities of such series by
this Indenture; provided, that the Trustee may refuse to follow any direction
that conflicts with law or this Indenture, that may involve the Trustee in
personal liability or that the Trustee determines in good faith may be unduly
prejudicial to the rights of Holders not joining in the giving of such
direction; and provided further, that the Trustee may take any other action it
deems proper that is not inconsistent with any directions received from Holders
of Securities pursuant to this Section 6.05.

 

Section 6.06.  Limitation
on Suits.  No Holder of any Security of any series may institute any proceeding,
judicial or otherwise, with respect to this Indenture or the Securities of such
series, or for the appointment of a receiver or trustee, or for any other
remedy hereunder, unless:

 

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

 

(b)      the Holders of at least 25%
in aggregate principal amount of outstanding Securities of all such series
affected shall have made written request to the Trustee to institute
proceedings in respect of such Event of Default in its own name as Trustee
hereunder;

 

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

 

35

 

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

 

(e)       during such 60-day period,
the Holders of a majority in aggregate principal amount of the outstanding
Securities of all such affected series have not given the Trustee a direction
that is inconsistent with such written request.

 

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

 

Section 6.07.  Rights of
Holders to Receive Payment.  Notwithstanding any other provision of this Indenture, the right of any
Holder of a Security to receive payment of Principal of or interest, if any, on
such Holder’s Security on or after the respective due dates expressed on such
Security, or to bring suit for the enforcement of any such payment on or after
such respective dates, shall not be impaired or affected without the consent of
such Holder.

 

Section 6.08.  Collection
Suit by Trustee.  If an Event of Default with respect to the Securities of any series in
payment of Principal or interest specified in clause (a) or (b) of Section 6.01  occurs and is continuing, the Trustee may
recover judgment in its own name and as trustee of an express trust against the
Company for the whole amount (or such portion thereof as specified in the terms
established pursuant to Section 2.03 of Original Issue Discount
Securities) of Principal of, and accrued interest remaining unpaid on, together
with interest on overdue Principal of, and, to the extent that payment of such
interest is lawful, interest on overdue installments of interest on, the
Securities of such series, in each case at the rate or Yield to Maturity (in
the case of Original Issue Discount Securities) specified in such Securities,
and such further amount as shall be sufficient to cover all amounts owing the
Trustee under Section 7.07.

 

Section 6.09.  Trustee May File
Proofs of Claim.  The Trustee may 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 amounts due the Trustee under Section 7.07) and
the Holders allowed in any judicial proceedings relative to the Company (or any
other obligor on the Securities), its creditors or its property and shall be
entitled and empowered to collect and receive any moneys, securities or other
property payable or deliverable upon conversion or exchange of the Securities
or upon any such claims and to distribute the same, and any custodian,
receiver, assignee, trustee, liquidator, sequestrator or other similar official
in any such judicial proceeding is hereby authorized by each Holder to make
such payments to the Trustee and, in the event that the Trustee shall consent
to the making of such payments directly to the 

 

36

 

Holders, to pay to the Trustee any amount due to it
under Section 7.07.  Nothing herein
contained shall be deemed to empower the Trustee to authorize or consent to, or
accept or adopt on behalf of any Holder, any plan of reorganization,
arrangement, adjustment or composition affecting the Securities or the rights
of any Holder thereof, or to authorize the Trustee to vote in respect of the
claim of any Holder in any such proceeding.

 

Section 6.10. 
Application of Proceeds.  Any moneys collected by the Trustee pursuant to this Article in
respect of the Securities of any series shall be applied in the following order
at the date or dates fixed by the Trustee and, in case of the distribution of
such moneys on account of Principal or interest, upon presentation of the
several Securities and coupons appertaining to such Securities in respect of
which moneys have been collected and noting thereon the payment, or issuing
Securities of such series and tenor in reduced principal amounts in exchange
for the presented Securities of such series and tenor if only partially paid,
or upon surrender thereof if fully paid:

 

FIRST: 
To the payment of all amounts due the Trustee under Section 7.07
applicable to the Securities of such series in respect of which moneys have
been collected;

 

SECOND: 
In case the principal of the Securities of such series in respect of
which moneys have been collected shall not have become and be then due and
payable, to the payment of interest on the Securities of such series in default
in the order of the maturity of the installments of such interest, with
interest (to the extent that such interest has been collected by the Trustee)
upon the overdue installments of interest at the same rate as the rate of
interest or Yield to Maturity (in the case of Original Issue Discount
Securities) specified in such Securities, such payments to be made ratably to
the persons entitled thereto, without discrimination or preference;

 

THIRD: 
In case the principal of the Securities of such series in respect of
which moneys have been collected shall have become and shall be then due and
payable, to the payment of the whole amount then owing and unpaid upon all the
Securities of such series for Principal and interest, with interest upon the
overdue Principal, and (to the extent that such interest has been collected by
the Trustee) upon overdue installments of interest at the same rate as the rate
of interest or Yield to Maturity (in the case of Original Issue Discount
Securities) specified in the Securities of such series; and in case such moneys
shall be insufficient to pay in full the whole amount so due and unpaid upon
the Securities of such series, then to the payment of such Principal and
interest or Yield to Maturity, without preference or priority of Principal over
interest or Yield to Maturity, or of

 

37

 

interest or Yield to Maturity over Principal, or of
any installment of interest over any other installment of interest, or of any
Security of such series over any other Security of such series, ratably to the
aggregate of such Principal and accrued and unpaid interest or Yield to
Maturity; and

 

FOURTH: 
To the payment of the remainder, if any, to the Company or any other
person lawfully entitled thereto.

 

Section 6.11. 
Restoration of Rights and Remedies. 
If the Trustee or any Holder has instituted
any proceeding to enforce any right or remedy under this Indenture and such
proceeding has been discontinued or abandoned for any reason, or has been
determined adversely to the Trustee or to such Holder, then, and in every such
case, subject to any determination in such proceeding, the Company, the Trustee
and the Holders shall be restored to their former positions hereunder and
thereafter all rights and remedies of the Company, Trustee and the Holders
shall continue as though no such proceeding had been instituted.

 

Section 6.12.  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 Trustee, in either
case in respect to the Securities of any series, a court may require any party
litigant in such suit (other than the Trustee) to file an undertaking to pay
the costs of the suit, and the court may assess reasonable costs, including
reasonable attorneys’ fees, against any party litigant (other than the Trustee)
in the suit having due regard to the merits and good faith of the claims or
defenses made by the party litigant. 
This Section 6.12 does not apply to a suit by a Holder pursuant to Section 6.07,
a suit instituted by the Trustee or a suit by Holders of more than 10% in
principal amount of the outstanding Securities of such series.

 

Section 6.13.  Rights and
Remedies Cumulative.  Except as otherwise provided with respect to the replacement or payment
of mutilated, destroyed, lost or wrongfully taken Securities in Section 2.08,
no right or remedy herein conferred upon or reserved to the Trustee or to the
Holders is intended to be exclusive of any other right or remedy, and every
right and remedy shall, to the extent permitted by law, be cumulative and in
addition to every other right and remedy given hereunder or now or hereafter
existing at law or in equity or otherwise. 
The assertion or employment of any right or remedy hereunder, or
otherwise, shall not prevent the concurrent assertion or employment of any other
appropriate right or remedy.

 

Section 6.14.  Delay or
Omission not Waiver.  No delay or omission of the Trustee or of any Holder to exercise any
right or remedy accruing upon any Event of Default shall impair any such right
or remedy or constitute a waiver of any such Event of Default or an acquiescence
therein.  Every right and remedy given

 

38

 

by this Article 6 or by law to the Trustee or
to the Holders may be exercised from time to time, and as often as may be
deemed expedient, by the Trustee or by the Holders, as the case may be.

 

ARTICLE 7

TRUSTEE

 

Section 7.01. 
General.  The duties and responsibilities of the Trustee shall be as provided by
the Trust Indenture Act and as set forth herein.  Notwithstanding the foregoing, no provision
of this Indenture shall require the Trustee to expend or risk its own funds or
otherwise incur any financial liability in the performance of any of its duties
hereunder, or in the exercise of any of its rights or powers, unless it
receives indemnity satisfactory to it against any loss, liability or
expense.  Whether or not therein
expressly so provided, every provision of this Indenture relating to the
conduct or affecting the liability of or affording protection to the Trustee
shall be subject to the provisions of this Article 7.

 

Section 7.02.  Certain
Rights of Trustee.  Subject to Trust Indenture Act Sections 315(a) through (d):

 

(a)       the Trustee may rely and
shall be protected in acting or refraining from acting upon any resolution,
certificate, Officers’ Certificate, Opinion of Counsel (or both), statement,
instrument, opinion, report, notice, request, direction, consent, order, bond,
debenture, note, other evidence of indebtedness or other paper or document
believed by it to be genuine and to have been signed or presented by the proper
person or persons.  The Trustee need not
investigate any fact or matter stated in the document, but the Trustee, in its
discretion, may make such further inquiry or investigation into such facts or
matters as it may see fit;

 

(b)     before the Trustee acts or
refrains from acting, it may require an Officers’ Certificate and/or an Opinion
of Counsel, which shall conform to Section 10.04 and shall cover such
other matters as the Trustee may reasonably request.  The Trustee shall not be liable for any
action it takes or omits to take in good faith in reliance on such certificate
or opinion.  Subject to Sections 7.01 and
7.02, whenever in the administration of the trusts of this Indenture the Trustee
shall deem it necessary or desirable that a matter be proved or established
prior to taking or suffering or omitting any action hereunder, such matter
(unless other evidence in respect thereof be herein specifically prescribed)
may, in the absence of negligence or bad faith on the part of the Trustee, be
deemed to be conclusively proved and established by an Officers’

 

39

 

Certificate
delivered to the Trustee, and such certificate, in the absence of negligence or
bad faith on the part of the Trustee, shall be full warrant to the Trustee for
any action taken, suffered or omitted by it under the provisions of this
Indenture upon the faith thereof;

 

(c)       the Trustee may act through
its attorneys and agents not regularly in its employ and shall not be responsible
for the misconduct or negligence of any agent or attorney appointed with due
care;

 

(d)      any request, direction, order
or demand of the Company mentioned herein shall be sufficiently evidenced by an
Officers’ Certificate (unless other evidence in respect thereof be herein
specifically prescribed); and any Board Resolution may be evidenced to the
Trustee by a copy thereof certified by the Secretary or an Assistant Secretary
of the Company;

 

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

 

(f)       the Trustee shall not be
liable for any action it takes or omits to take in good faith that it believes
to be authorized or within its rights or powers or for any action it takes or
omits to take in accordance with the direction of the Holders in accordance
with Section 6.05 relating to the time, method and place of conducting any
proceeding for any remedy available to the Trustee, or exercising any trust or
power conferred upon the Trustee, under this Indenture;

 

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

 

(h)      prior to the occurrence of an
Event of Default hereunder and after the curing or waiving of all Events of
Default, the Trustee shall not be bound to make any investigation into the
facts or matters stated in any resolution, certificate, Officers’ Certificate,
Opinion of Counsel, Board Resolution, statement, instrument, opinion, report,
notice, request, consent, order, approval, appraisal, bond, debenture, note,
coupon, security, or other paper or document unless requested in writing so to
do by the Holders of not less than a majority in aggregate principal amount of

 

40

 

the
Securities of all series affected then outstanding; provided that, if the
payment within a reasonable time to the Trustee of the costs, expenses or
liabilities likely to be incurred by it in the making of such investigation is,
in the opinion of the Trustee, not reasonably assured to the Trustee by the
security afforded to it by the terms of this Indenture, the Trustee may require
reasonable indemnity against such expenses or liabilities as a condition to
proceeding.

 

Section 7.03.  Individual
Rights of Trustee.  The Trustee, in its individual or any other capacity, may become the
owner or pledgee of Securities and may otherwise deal with the Company or its
Affiliates with the same rights it would have if it were not the Trustee.  Any Agent may do the same with like rights.  However, the Trustee is subject to Trust
Indenture Act Sections 310(b) and 311. 
For purposes of Trust Indenture Act Section 311(b)(4) and (6),
the following terms shall mean:

 

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

 

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

 

Section 7.04.  Trustee’s
Disclaimer.  The recitals contained herein and in the Securities (except the Trustee’s
certificate of authentication) shall be taken as statements of the Company and
not of the Trustee and the Trustee assumes no responsibility for the
correctness of the same.  Neither the
Trustee nor any of its agents (a) makes any representation as to the
validity or adequacy of this Indenture or the Securities and (b) shall be
accountable for the Company’s use or application of the proceeds from the
Securities.

 

Section 7.05.  Notice of
Default.  If
any Default with respect to the Securities of any series occurs and is
continuing and if such Default is known to the actual knowledge of a
Responsible Officer with the Corporate Trust Department of the Trustee, the
Trustee shall give to each Holder of Securities of

 

41

 

such series notice of such Default within 90 days
after it occurs (a) if any Unregistered Securities of such series are then
outstanding, to the Holders thereof, by publication at least once in an
Authorized Newspaper in the Borough of Manhattan, The City of New York and at
least once in an Authorized Newspaper in London and (b) to all Holders of
Securities of such series in the manner and to the extent provided in Section 313(c) of
the Trust Indenture Act, unless such Default shall have been cured or waived
before the mailing or publication of such notice; provided, however, that,
except in the case of a Default in the payment of the Principal of or interest
on any Security, the Trustee shall be protected in withholding such notice if
the Trustee in good faith determines that the withholding of such notice is in
the interests of the Holders.

 

Section 7.06.  Reports by
Trustee to Holders.    The Trustee shall transmit to
Holders such reports concerning the Trustee and its actions under this
Indenture as may be required pursuant to the Trust Indenture Act at the times
and in the manner provided pursuant thereto. If required by Section 313(a) of
the Trust Indenture Act, the Trustee shall, within 60 days after each May 15
following the date of this Indenture, deliver to Holders a brief report, dated
as of such May 15, which complies with the provisions of such Section 313(a).

 

A copy of each such report shall, at the time of
such transmission to Holders, be filed by the Trustee with each stock exchange
upon which any Securities are listed, with the Commission and with the Company.
The Company will promptly notify the Trustee when any Securities are listed on
any stock exchange.

 

Section 7.07. 
Compensation and Indemnity.  The Company shall pay to the Trustee such compensation as shall be agreed
upon in writing from time to time for its services.  The compensation of the Trustee shall not be
limited by any law on compensation of a Trustee of an express trust.  The Company shall reimburse the Trustee and
any predecessor Trustee upon request for all reasonable out-of-pocket expenses,
disbursements and advances incurred or made by the Trustee or such predecessor
Trustee.  Such expenses shall include the
reasonable compensation and expenses of the Trustee’s or such predecessor
Trustee’s agents, counsel and other persons not regularly in their employ.

 

The Company shall indemnify the Trustee and any
predecessor Trustee for, and hold them harmless against, any loss or liability
or expense incurred by them without negligence or bad faith on their part
arising out of or in connection with the acceptance or administration of this
Indenture and the Securities or the issuance of the Securities or of series
thereof or the trusts hereunder and the performance of duties under this
Indenture and the Securities, including the costs and expenses of defending
themselves against or investigating any claim or liability and of complying
with any process served upon them or any of their

 

42

 

officers in connection with the exercise or
performance of any of their powers or duties under this Indenture and the
Securities.

 

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

 

The obligations of the Company under this Section to
compensate and indemnify the Trustee and each predecessor Trustee and to pay or
reimburse the Trustee and each predecessor Trustee for expenses, disbursements
and advances shall constitute additional indebtedness hereunder and shall
survive the satisfaction and discharge of this Indenture or the rejection or
termination of this Indenture under bankruptcy law.  Such additional indebtedness shall be a
senior claim to that of the Securities upon all property and funds held or
collected by the Trustee as such, except funds held in trust for the benefit of
the Holders of particular Securities or coupons, and the Securities are hereby
subordinated to such senior claim. 
Without prejudice to any other rights available to the Trustee under
applicable law, if the Trustee renders services and incurs expenses following
an Event of Default under Section 6.01(d) or Section 6.01(e) hereof,
the parties hereto and the holders by their acceptance of the Securities hereby
agree that such expenses are intended to constitute expenses of administration
under any bankruptcy law.

 

Section 7.08. 
Replacement of Trustee.  A resignation or removal of the Trustee as Trustee with respect to the
Securities of any series and appointment of a successor Trustee as Trustee with
respect to the Securities of any series shall become effective only upon the
successor Trustee’s acceptance of appointment as provided in this Section 7.08.

 

The Trustee may resign as Trustee with respect to
the Securities of any series at any time by so notifying the Company in
writing.  The Holders of a majority in principal
amount of the outstanding Securities of any series may remove the Trustee as
Trustee with respect to the Securities of such series by so notifying the
Trustee in writing and may appoint a successor Trustee with respect thereto
with the consent of the Company.  The
Company may remove the Trustee as Trustee with respect to the Securities of any
series if: (i) the Trustee is no longer eligible under Section 7.11
of this Indenture; (ii) the Trustee is adjudged a bankrupt or insolvent; (iii) a
receiver or other public officer takes charge of the Trustee or its property;
or (iv) the Trustee becomes incapable of acting.

 

If the Trustee resigns or is removed as Trustee
with respect to the Securities of any series, or if a vacancy exists in the
office of Trustee with respect to the Securities of any series for any reason,
the Company shall promptly appoint

 

43

 

a successor Trustee with respect thereto.  Within one year after the successor Trustee
takes office, the Holders of a majority in principal amount of the outstanding
Securities of such series may appoint a successor Trustee in respect of such
Securities to replace the successor Trustee appointed by the Company.  If the successor Trustee with respect to the
Securities of any series does not deliver its written acceptance required by Section 7.09
within 30 days after the retiring Trustee resigns or is removed, the retiring
Trustee, the Company or the Holders of a majority in principal amount of the
outstanding Securities of such series may petition any court of competent
jurisdiction for the appointment of a successor Trustee with respect thereto.

 

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

 

Notwithstanding replacement of the Trustee with
respect to the Securities of any series pursuant to this Section 7.08 and Section 7.09,
the Company’s obligations under Section 7.07 shall continue for the
benefit of the retiring Trustee.

 

Section 7.09.  Acceptance
of Appointment by Successor.  In
case of the appointment hereunder of a successor Trustee with respect to all
Securities, every such successor Trustee so appointed shall execute,
acknowledge and deliver to the Company and to the retiring Trustee an instrument
accepting such appointment, and thereupon the resignation or removal of the
retiring Trustee shall become effective and such successor Trustee, without any
further act, deed or conveyance, shall become vested with all the rights,
powers, trusts and duties of the retiring Trustee; but, on the request of the
Company or the successor Trustee, such retiring Trustee shall, upon payment of
its charges and subject to the lien provided for in Section 7.07, execute
and deliver an instrument transferring to such successor Trustee all the
rights, powers and trusts of the retiring Trustee and shall duly assign,
transfer and deliver to such successor Trustee all property and money held by
such retiring Trustee hereunder.

 

In case of the appointment hereunder of a successor
Trustee with respect to the Securities of one or more (but not all) series, the
Company, the retiring Trustee and each successor Trustee with respect to the
Securities of one or more series shall execute and deliver an indenture
supplemental hereto wherein each successor Trustee shall accept such
appointment and which (1) shall contain such provisions as shall be
necessary or desirable to transfer and confirm to, and to vest in, each
successor Trustee all the rights, powers, trusts and duties of the retiring
Trustee with respect to the Securities of that or those series to which the
appointment of such successor Trustee relates, (2) if the retiring Trustee
is not

 

44

 

retiring with respect to all Securities, shall
contain such provisions as shall be deemed necessary or desirable to confirm
that all the rights, powers, trusts and duties of the retiring Trustee with
respect to the Securities of that or those series as to which the retiring
Trustee is not retiring shall continue to be vested in the retiring Trustee,
and (3) shall add to or change any of the provisions of this Indenture as
shall be necessary to provide for or facilitate the administration of the
trusts hereunder by more than one Trustee, it being understood that nothing
herein or in such supplemental indenture shall constitute such Trustees
co-trustees of the same trust and that each such Trustee shall be trustee of a
trust or trusts hereunder separate and apart from any trust or trusts hereunder
administered by any other such Trustee; and upon the execution and delivery of
such supplemental indenture the resignation or removal of the retiring Trustee
shall become effective to the extent provided therein and each such successor
Trustee, without any further act, deed or conveyance, shall become vested with
all the rights, powers, trusts and duties of the retiring Trustee with respect
to the Securities of that or those series to which the appointment of such
successor Trustee relates; but, on request of the Company or any successor
Trustee, such retiring Trustee shall duly assign, transfer and deliver to such successor
Trustee all property and money held by such retiring Trustee hereunder with
respect to the Securities of that or those series to which the appointment of
such successor Trustee relates.

 

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

 

No successor Trustee shall accept its appointment
unless at the time of such acceptance such successor Trustee shall be eligible
under this Article and qualified under Section 310(b) of the
Trust Indenture Act.

 

Section 7.10.  Successor
Trustee By Merger, Etc.  If the Trustee consolidates with, merges or converts into, or transfers
all or substantially all of its corporate trust business to, another
corporation or national banking association, the resulting, surviving or
transferee corporation or national banking association without any further act
shall be the successor Trustee with the same effect as if the successor Trustee
had been named as the Trustee herein.

 

Section 7.11. 
Eligibility.  This Indenture shall always have a Trustee who satisfies the
requirements of Trust Indenture Act Section 310(a).  The Trustee shall have a combined capital and
surplus of at least $25,000,000 as set forth in its most recent published
annual report of condition.

 

Section 7.12.  Money Held
in Trust.  The Trustee shall not be liable for interest on any money received by it
except as the Trustee may agree in writing

 

45

 

with the Company. 
Money held in trust by the Trustee need not be segregated from other
funds except to the extent required by law and except for money held in trust
under Article 8 of this Indenture.

 

ARTICLE 8

SATISFACTION
AND DISCHARGE OF INDENTURE; UNCLAIMED MONEYS

 

Section 8.01. 
Satisfaction and Discharge of Indenture. 
If at any time (a) the Company shall
have paid or caused to be paid the Principal of and interest on all the
Securities of any series outstanding hereunder (other than Securities of such
series which have been destroyed, lost or stolen and which have been replaced
or paid as provided in Section 2.08) as and when the same shall have
become due and payable, or (b) the Company shall have delivered to the
Trustee for cancellation all Securities of any series theretofore authenticated
(other than any Securities of such series which shall have been destroyed, lost
or stolen and which shall have been replaced or paid as provided in Section 2.08)
or (c) (i) all the securities of such series not theretofore
delivered to the Trustee for cancellation shall have become due and payable, or
are by their terms to become due and payable within one year or are to be
called for redemption within one year under arrangements satisfactory to the
Trustee for the giving of notice of redemption, and (ii) the Company shall
have irrevocably deposited or caused to be deposited with the Trustee as trust
funds the entire amount in cash (other than moneys repaid by the Trustee or any
paying agent to the Company in accordance with Section 8.04) or U.S.
Government Obligations, maturing as to principal and interest in such amounts
and at such times as will insure (without consideration of the reinvestment of
such interest) the availability of cash, or a combination thereof, sufficient
to pay at maturity or upon redemption all Securities of such series (other than
any Securities of such series which shall have been destroyed, lost or stolen
and which shall have been replaced or paid as provided in Section 2.08)
not theretofore delivered to the Trustee for cancellation, including principal
and interest due or to become due on or prior to such date of maturity or
redemption as the case may be, and if, in any such case, the Company shall also
pay or cause to be paid all other sums payable hereunder by the Company with
respect to Securities of such series, then this Indenture shall cease to be of
further effect with respect to Securities of such series (except as to (i) rights
of registration of transfer and exchange of securities of such series, and the
Company’s right of optional redemption, if any, (ii) substitution of
mutilated, defaced, destroyed, lost or stolen Securities, (iii) rights of
holders to receive payments of principal thereof and interest thereon, upon the
original stated due dates therefor (but not upon acceleration) and remaining
rights of the holders to receive mandatory sinking fund payments, if any, (iv) the
rights, obligations and immunities of the Trustee hereunder and (v) the
rights of the Securityholders of such series as beneficiaries hereof with
respect to the property so deposited with

 

46

 

the Trustee payable to all or any of them), and the
Trustee, on demand of the Company accompanied by an Officers’ Certificate and
an Opinion of Counsel and at the cost and expense of the Company, shall execute
proper instruments acknowledging such satisfaction of and discharging this
Indenture with respect to such series; provided, that the rights of Holders of
the Securities to receive amounts in respect of Principal of and interest on
the Securities held by them shall not be delayed longer than required by
then-applicable mandatory rules or policies of any securities exchange
upon which the Securities are listed.  The
Company agrees to reimburse the Trustee for any costs or expenses thereafter
reasonably and properly incurred and to compensate the Trustee for any services
thereafter reasonably and properly rendered by the Trustee in connection with
this Indenture or the Securities of such series.

 

Section 8.02. 
Application by Trustee of Funds Deposited for Payment of
Securities.  Subject to Section 8.04, all moneys (including U.S. Government
Obligations and the proceeds thereof) deposited with the Trustee pursuant to Section 8.01,
Section 8.05 or Section 8.06 shall be held in trust and applied by it
to the payment, either directly or through any paying agent to the Holders of
the particular Securities of such series for the payment or redemption of which
such moneys have been deposited with the Trustee, of all sums due and to become
due thereon for Principal and interest; but such money need not be segregated
from other funds except to the extent required by law.

 

Section 8.03.  Repayment
of Moneys Held by Paying Agent.  In connection with the satisfaction and discharge of this Indenture with
respect to Securities of any series, all moneys then held by any paying agent
under the provisions of this Indenture with respect to such series of
Securities shall, upon demand of the Company, be repaid to it or paid to the
Trustee and thereupon such paying agent shall be released from all further
liability with respect to such moneys.

 

Section 8.04.  Return of
Moneys Held by Trustee and Paying Agent Unclaimed for Two Years.  Any
moneys deposited with or paid to the Trustee or any paying agent for the
payment of the Principal of or interest on any Security of any series and not
applied but remaining unclaimed for two years after the date upon which such
Principal or interest shall have become due and payable, shall, upon the
written request of the Company and unless otherwise required by mandatory
provisions of applicable escheat or abandoned or unclaimed property law, be
repaid to the Company by the Trustee for such series or such paying agent, and
the Holder of the Security of such series shall, unless otherwise required by
mandatory provisions of applicable escheat or abandoned or unclaimed property
laws, thereafter look only to the Company for any payment which such Holder may
be entitled to collect, and all liability of the Trustee or any paying agent
with respect to such moneys shall thereupon cease.

 

47

 

Section 8.05.  Defeasance
and Discharge of Indenture.  The Company shall be deemed to have paid and shall be discharged from
any and all obligations in respect of the Securities of any series, on the
123rd day after the deposit referred to in clause (i) hereof has been
made, and the provisions of this Indenture shall no longer be in effect with
respect to the Securities of such series (and the Trustee, at the expense of
the Company, shall execute proper instruments acknowledging the same), except
as to: (a) rights of registration of transfer and exchange, and the
Company’s right of optional redemption, (b) substitution of apparently
mutilated, defaced, destroyed, lost or stolen Securities, (c) rights of
holders to receive payments of principal thereof and interest thereon, upon the
original stated due dates therefor (but not upon acceleration), (d) the
rights, obligations and immunities of the Trustee hereunder and (e) the
rights of the Securityholders of such series as beneficiaries hereof with
respect to the property so deposited with the Trustee payable to all or any of
them; provided that the following conditions shall have been satisfied:

 

(i)    with reference to this
provision the Company has deposited or caused to be irrevocably deposited with
the Trustee (or another qualifying trustee satisfying the requirements of Section 7.11)
as trust funds in trust, specifically pledged as security for, and dedicated
solely to, the benefit of the Holders of the Securities of such series, (A) money
in an amount, or (B) U.S. Government Obligations which through the payment
of interest and principal in respect thereof in accordance with their terms
will provide not later than one day before the due date of any payment referred
to in subclause (x) or (y) of this clause (i) money in an
amount, or (C) a combination thereof, sufficient, in the opinion of a
nationally recognized firm of independent public accountants expressed in a
written certification thereof delivered to the Trustee, to pay and discharge
without consideration of the reinvestment of such interest and after payment of
all federal, state and local taxes or other charges and assessments in respect
thereof payable by the Trustee (x) the principal of, premium, if any, and
each installment of interest on the outstanding Securities of such series on
the due dates thereof and (y) any mandatory sinking fund payments or
analogous payments applicable to the Securities of such series on the day on
which such payments are due and payable in accordance with the terms of
Securities of such series and the Indenture with respect to the Securities of
such series;

 

(ii)   the Company has delivered to the
Trustee (A) either (x) an Opinion of Counsel to the effect that
Holders of Securities of such series will not recognize income, gain or loss
for federal income tax purposes as a result of the Company’s exercise of its
option under this Section 8.05 and will be subject to federal income tax
on the same amount and in the same manner and at the same times as would have
been the case if such

 

48

 

deposit,
defeasance and discharge had not occurred, which Opinion of Counsel must be
based upon a ruling of the Internal Revenue Service to the same effect or a
change in applicable federal income tax law or related treasury regulations
after the date of this Indenture or (y) a ruling directed to the Trustee
received from the Internal Revenue Service to the same effect as the
aforementioned Opinion of Counsel and (B) an Opinion of Counsel to the
effect that the creation of the defeasance trust does not violate the
Investment Company Act of 1940 and after the passage of 123 days following the
deposit, the trust fund will not be subject to the effect of Section 547
of the U.S. Bankruptcy Code or Section 15 of the New York Debtor and
Creditor Law;

 

(iii)  immediately after giving effect
to such deposit on a pro forma basis, no Event of Default, or event that after
the giving of notice or lapse of time or both would become an Event of Default,
shall have occurred and be continuing on the date of such deposit or during the
period ending on the 123rd day after the date of such deposit, and such deposit
shall not result in a breach or violation of, or constitute a default under,
any other agreement or instrument to which the Company is a party or by which
the Company is bound;

 

(iv)  if at such time the Securities of
such series are listed on a national securities exchange, the Company has
delivered to the Trustee an Opinion of Counsel to the effect that the
Securities of such series will not be delisted as a result of such deposit,
defeasance and discharge;

 

(v)   the Company shall have delivered
to the Trustee an Officers’ Certificate and an Opinion of Counsel, each stating
that all conditions precedent to the defeasance and discharge under this Section have
been complied with; and

 

(vi)  if the Securities of such series
are to be redeemed prior to the final maturity thereof (other than from
mandatory sinking fund payments or analogous payments), notice of such
redemption shall have been duly given pursuant to this Indenture or provision
therefor satisfactory to the Trustee shall have been made.

 

Section 8.06.  Defeasance
of Certain Obligations.  The Company may omit to comply with any term, provision or condition set
forth in, and this Indenture will no longer be in effect with respect to, any
covenant established pursuant to Section 2.03(r) and clause (c) (with
respect to any covenants established pursuant to Section 2.03(r)) and
clause (f) of Section 6.01 shall be deemed not to be an Event of
Default with respect to Securities of any series, if

 

49

 

(a)   with reference to this Section 8.06,
the Company has deposited or caused to be irrevocably deposited with the
Trustee (or another qualifying trustee satisfying the requirements of Section 7.11)
as trust funds in trust, specifically pledged as security for, and dedicated
solely to, the benefit of the Holders of the Securities of such series and the
Indenture with respect to the Securities of such series, (i) money in an
amount or (ii) U.S. Government Obligations which through the payment of
interest and principal in respect thereof in accordance with their terms will
provide not later than one day before the due dates thereof or earlier
redemption (irrevocably provided for under agreements satisfactory to the
Trustee), as the case may be, of any payment referred to in subclause (x) or
(y) of this clause (a) money in an amount, or (iii) a
combination thereof, sufficient, in the opinion of a nationally recognized firm
of independent public accountants expressed in a written certification thereof
delivered to the Trustee, to pay and discharge without consideration of the
reinvestment of such interest and after payment of all federal, state and local
taxes or other charges and assessments in respect thereof payable by the
Trustee (x) the principal of, premium, if any, and each installment of
interest on the outstanding Securities of such series on the due date thereof
or earlier redemption (irrevocably provided for under arrangements satisfactory
to the Trustee), as the case may be, and (y) any mandatory sinking fund
payments or analogous payments applicable to the Securities of such series and
the Indenture with respect to the Securities of such series on the day on which
such payments are due and payable in accordance with the terms of the Indenture
and of Securities of such series and the Indenture with respect to the
Securities of such series;

 

(b)   the Company has delivered to the
Trustee (i) an Opinion of Counsel to the effect that Holders of Securities
of such series will not recognize income, gain or loss for federal income tax
purposes as a result of the Company’s exercise of its option under this Section 8.06
and will be subject to federal income tax on the same amount and in the same
manner and at the same times as would have been the case if such deposit and
defeasance had not occurred and (ii) an Opinion of Counsel to the effect
that the creation of the defeasance trust does not violate the Investment
Company Act of 1940 and after the passage of 123 days following the deposit,
the trust fund will not be subject to the effect of Section 547 of the
U.S. Bankruptcy Code or Section 15 of the New York Debtor and Creditor
Law;

 

(c)   immediately after giving effect
to such deposit on a pro forma basis, no Event of Default, or event that after
the giving of notice or lapse of time or both would become an Event of Default,
shall have occurred and be continuing on the date of such deposit or during the
period ending on the 123rd day after the date of such deposit, and such deposit
shall not result in a breach or violation of, or constitute a default under,
any other agreement or instrument to which the Company is a party or by which
the Company is bound;

 

50

 

(d)   if at such time the Securities
of such series are listed on a national securities exchange, the Company has
delivered to the Trustee an Opinion of Counsel to the effect that the
Securities of such series will not be delisted as a result of such deposit, defeasance
and discharge; and

 

(e)   the Company shall have delivered
to the Trustee an Officers’ Certificate and an Opinion of Counsel, each stating
that all conditions precedent to the defeasance 
under this Section have been complied with.

 

Section 8.07.  Reinstatement.  If
the Trustee or paying agent is unable to apply any monies or U.S. Government
Obligations in accordance with Article 8 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 Securities shall be revived and
reinstated as though no deposit had occurred pursuant to this Article until
such time as the Trustee or paying agent is permitted to apply all such monies
or U.S. Government Obligations in accordance with Article 8; provided, however, that if the Company has made any payment
of Principal of or interest on any Securities because of the reinstatement of
its obligations, the Company shall be subrogated to the rights of the Holders
of such Securities to receive such payment from the monies or U.S. Government
Obligations held by the Trustee or paying agent.

 

Section 8.08.  Indemnity.
The Company shall pay and indemnify the Trustee (or other qualifying trustee,
collectively for purposes of this Section 8.08 and Section 8.02, the “Trustee”)
against any tax, fee or other charge, imposed on or assessed against the U.S.
Government Obligations deposited pursuant to Section 8.01, 8.05 or
8.06  or the principal or 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 Securities and any coupons
appertaining thereto.

 

Section 8.09.  Excess
Funds. Anything in this Article 8 to the contrary
notwithstanding, the Trustee shall deliver or pay to the Company from time to
time upon request of the Company, any money or U.S. Government Obligations (or
other property and any proceeds therefrom) held by it as provided in Section 8.01,
8.05 or 8.06 which, in the opinion of a nationally recognized firm of
Independent Public Accountants expressed in a written certification thereof
delivered to the Trustee, are in excess of the amount thereof which would then
be required to be deposited to effect a discharge or defeasance, as applicable,
in accordance with this Article 8.

 

Section 8.10.  Qualifying
Trustee. Any trustee appointed pursuant to Section 8.05 or 8.06
for the purpose of holding money or U.S. Government Obligations deposited
pursuant to such Sections shall be appointed under an

 

51

 

agreement in form acceptable to the Trustee and
shall provide to the Trustee a certificate, upon which certificate the Trustee
shall be entitled to conclusively rely, that all conditions precedent provided
for herein to the related defeasance have been complied with.  In no event shall the Trustee be liable for
any acts or omissions of said trustee.

 

ARTICLE 9

AMENDMENTS,
SUPPLEMENTS AND WAIVERS

 

Section 9.01.  Without
Consent of Holders.  The Company and the Trustee may amend or supplement this Indenture or
the Securities of any series without notice to or the consent of any Holder:

 

(a)       to cure any ambiguity,
defect or inconsistency in this Indenture; provided that
such amendments or supplements shall not materially and adversely affect the
interests of the Holders;

 

(b)      to comply with Article 5;

 

(c)       to comply with any
requirements of the Commission in connection with the qualification of this
Indenture under the Trust Indenture Act;

 

(d)      to evidence and provide for
the acceptance of appointment hereunder with respect to the Securities of any
or all series by a successor Trustee and to add to or change any of the
provisions of this Indenture as shall be necessary to provide for or facilitate
the administration of the trusts hereunder by more than one Trustee, pursuant
to the requirements of Section 7.09;

 

(e)       to establish the form or
forms or terms of Securities of any series or of the coupons appertaining to
such Securities as permitted by Section 2.03;

 

(f)       to provide for
uncertificated or Unregistered Securities and to make all appropriate changes
for such purpose; and

 

(g)      to make any change that does
not materially and adversely affect the rights of any Holder.

 

Section 9.02.  With
Consent of Holders.  Subject to Sections 6.04 and 6.07, without prior notice to any Holders,
the Company and the Trustee may amend this Indenture and the Securities of any
series with the written consent of the Holders of a majority in principal
amount of the outstanding Securities of all series

 

52

 

affected by such amendment (all such series voting
together as a single class), and the Holders of a majority in principal amount
of the outstanding Securities of all series affected thereby (all such series
voting together as a single class) by written notice to the Trustee may waive
future compliance by the Company with any provision of this Indenture or the
Securities of such series.

 

Notwithstanding the provisions of this Section 9.02,
without the consent of each Holder affected thereby, an amendment or waiver,
including a waiver pursuant to Section 6.04, may not:

 

(a)   change the stated maturity of
the Principal of, or any sinking fund obligation or any installment of interest
on, such Holder’s Security,

 

(b)   reduce the Principal amount
thereof or the rate of interest thereon (including any amount in respect of
original issue discount);

 

(c)   reduce the above stated percentage
of outstanding Securities the consent of whose holders is necessary to modify
or amend the Indenture with respect to the Securities of the relevant series;
and

 

(d)   reduce the percentage in
principal amount of outstanding Securities of the relevant series the consent
of whose Holders is required for any supplemental indenture or for any waiver
of compliance with certain provisions of this Indenture or certain Defaults and
their consequences provided for in this Indenture.

 

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

 

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

 

After an amendment, supplement or waiver under this
Section 9.02 becomes effective, the Company shall give to the Holders
affected thereby a notice briefly describing the amendment, supplement or
waiver.  The Company will mail
supplemental indentures to Holders upon request.  Any failure of the Company to mail such
notice, or any defect therein, shall not, however, in any way impair or affect
the validity of any such supplemental indenture or waiver.

 

53

 

Section 9.03.  Revocation
and Effect of Consent.  Until an amendment or waiver becomes effective, a consent to it by a
Holder is a continuing consent by the Holder and every subsequent Holder of a
Security or portion of a Security that evidences the same debt as the Security
of the consenting Holder, even if notation of the consent is not made on any
Security.  However, any such Holder or
subsequent Holder may revoke the consent as to its Security or portion of its
Security.  Such revocation shall be effective
only if the Trustee receives the notice of revocation before the date the
amendment, supplement or waiver becomes effective.  An amendment, supplement or waiver shall
become effective with respect to any Securities affected thereby on receipt by
the Trustee of written consents from the requisite Holders of outstanding
Securities affected thereby.

 

The Company may, but shall not be obligated to, fix
a record date (which may be not less than five nor more than 60 days prior to
the solicitation of consents) for the purpose of determining the Holders of the
Securities of any series affected entitled to consent to any amendment,
supplement or waiver.  If a record date
is fixed, then, notwithstanding the immediately preceding paragraph, those
Persons who were such Holders at such record date (or their duly designated
proxies) and only those Persons shall be entitled to consent to such amendment,
supplement or waiver or to revoke any consent previously given, whether or not
such Persons continue to be such Holders after such record date.  No such consent shall be valid or effective
for more than 90 days after such record date.

 

After an amendment, supplement or waiver becomes
effective with respect to the Securities of any series affected thereby, it
shall bind every Holder of such Securities unless it is of the type described
in any of clauses (a) through (d) of Section 9.02.  In case of an amendment or waiver of the type
described in clauses (a) through (d) of Section 9.02, the
amendment or waiver shall bind each such Holder who has consented to it and
every subsequent Holder of a Security that evidences the same indebtedness as
the Security of the consenting Holder.

 

Section 9.04.  Notation
on or Exchange of Securities.  If an amendment, supplement or waiver changes the terms of any Security,
the Trustee may require the Holder thereof to deliver it to the Trustee.  The Trustee may place an appropriate notation
on the Security about the changed terms and return it to the Holder and the
Trustee may place an appropriate notation on any Security of such series
thereafter authenticated.  Alternatively,
if the Company or the Trustee so determines, the Company in exchange for the
Security shall issue and the Trustee shall authenticate a new Security of the
same series and tenor that reflects the changed terms.

 

Section 9.05.  Trustee to
Sign Amendments, Etc.  The Trustee shall be entitled to receive, and shall be fully protected
in relying upon, an Opinion of Counsel stating that the execution of any
amendment, supplement or waiver

 

54

 

authorized pursuant to this Article 9 is
authorized or permitted by this Indenture, stating that all requisite consents
have been obtained or that no consents are required and stating that such
supplemental indenture constitutes the legal, valid and binding obligation of
the Company, enforceable against the Company in accordance with its terms,
subject to customary exceptions.  The
Trustee may, but shall not be obligated to, execute any such amendment,
supplement or waiver that affects the Trustee’s own rights, duties or
immunities under this Indenture or otherwise.

 

Section 9.06.  Conformity
with Trust Indenture Act.  Every supplemental indenture executed pursuant to this Article 9
shall conform to the requirements of the Trust Indenture Act as then in effect.

 

ARTICLE 10

MISCELLANEOUS

 

Section 10.01.  Trust
Indenture Act of 1939.  This Indenture shall incorporate and be governed by the provisions of
the Trust Indenture Act that are required to be part of and to govern
indentures qualified under the Trust Indenture Act.

 

Section 10.02. 
Notices.  Any notice or communication shall be sufficiently given if written and (a) if
delivered in person when received or (b) if mailed by first class mail 5
days after mailing, or (c) as between the Company and the Trustee if sent
by facsimile transmission, when transmission is confirmed, in each case
addressed as follows:

 

if to the Company:

 

Cobalt International Energy, Inc. 

Two Post Oak Central

1980 Post Oak Boulevard, Suite 1200

Houston, TX 77056

Telecopy: (713) 579-9184

Attention:  General Counsel and Executive
Vice President

 

if to the Trustee:

 

55

 

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

 

Any notice or communication shall be sufficiently
given to Holders of any Unregistered Securities, by publication at least once
in an Authorized Newspaper in The City of New York, or with respect to any
Security the interest on which is based on the offered quotations in the
interbank Eurodollar market for dollar deposits at least once in an Authorized
Newspaper in London, and by mailing to the Holders thereof who have filed their
names and addresses with the Trustee pursuant to Section 313(c)(2) of
the Trust Indenture Act at such addresses as were so furnished to the Trustee
and to Holders of Registered Securities by mailing to such Holders at their
addresses as they shall appear on the Security Register.  Notice mailed shall be sufficiently given if
so mailed within the time prescribed. 
Copies of any such communication or notice to a Holder shall also be
mailed to the Trustee and each Agent at the same time.

 

Failure to mail a notice or communication to a
Holder or any defect in it shall not affect its sufficiency with respect to
other Holders.  Except as otherwise
provided in this Indenture, if a notice or communication is mailed in the
manner provided in this Section 10.02, it is duly given, whether or not
the addressee receives it.

 

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

 

In case it shall be impracticable to give notice as
herein contemplated, then such notification as shall be made with the approval
of the Trustee shall constitute a sufficient notification for every purpose
hereunder.

 

Section 10.03. 
Certificate and Opinion as to Conditions Precedent.  Upon
any request or application by the Company to the Trustee to take any action
under this Indenture, the Company shall furnish to the Trustee:

 

(a)      an Officers’ Certificate
stating that, in the opinion of the signers, all conditions precedent, if any,
provided for in this Indenture relating to the proposed action have been
complied with; and

 

(b)      an Opinion of Counsel stating
that, in the opinion of such counsel, all such conditions precedent have been
complied with.

 

56

 

Section 10.04.  Statements
Required in Certificate or Opinion.  Each certificate or opinion with respect to compliance with a condition
or covenant provided for in this Indenture (other than the certificate required
by Section 4.04) shall include:

 

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

 

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

 

(c)       a statement that, in the
opinion of each 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

 

(d)      a statement as to whether or
not, in the opinion of each such person, such condition or covenant has been
complied with; provided, however, that, with
respect to matters of fact, an Opinion of Counsel may rely on an Officers’
Certificate or certificates of public officials.

 

Section 10.05.  Evidence
of Ownership.  The Company, the Trustee and any agent of the Company or the Trustee may
deem and treat the Holder of any Unregistered Security and the Holder of any
coupon as the absolute owner of such Unregistered Security or coupon (whether
or not such Unregistered Security or coupon shall be overdue) for the purpose
of receiving payment thereof or on account thereof and for all other purposes,
and neither the Company, the Trustee, nor any agent of the Company or the
Trustee shall be affected by any notice to the contrary.  The fact of the holding by any Holder of an
Unregistered Security, and the identifying number of such Security and the date
of his holding the same, may be proved by the production of such Security or by
a certificate executed by any trust company, bank, banker or recognized
securities dealer wherever situated satisfactory to the Trustee, if such
certificate shall be deemed by the Trustee to be satisfactory.  Each such certificate shall be dated and
shall state that on the date thereof a Security bearing a specified identifying
number was deposited with or exhibited to such trust company, bank, banker or
recognized securities dealer by the person named in such certificate.  Any such certificate may be issued in respect
of one or more Unregistered Securities specified therein.  The holding by the person named in any such
certificate of any Unregistered Securities specified therein shall be presumed
to continue for a period of one year from the date of such certificate unless
at the time of any determination of such holding (1) another certificate
bearing a later date issued in respect of the same Securities

 

57

 

shall be produced or (2) the Security
specified in such certificate shall be produced by some other Person, or (3) the
Security specified in such certificate shall have ceased to be
outstanding.  Subject to Article 7,
the fact and date of the execution of any such instrument and the amount and
numbers of Securities held by the Person so executing such instrument may also
be proven in accordance with such reasonable rules and regulations as may
be prescribed by the Trustee or in any other manner which the Trustee may deem
sufficient.

 

The Company, the Trustee and any agent of the
Company or the Trustee may deem and treat the person in whose name any
Registered Security shall be registered upon the Security Register for such
series as the absolute owner of such Registered Security (whether or not such
Registered Security shall be overdue and notwithstanding any notation of
ownership or other writing thereon) for the purpose of receiving payment of or
on account of the Principal of and, subject to the provisions of this
Indenture, interest on such Registered Security and for all other purposes; and
neither the Company nor the Trustee nor any agent of the Company or the Trustee
shall be affected by any notice to the contrary.

 

Section 10.06.  Rules by
Trustee, Paying Agent or Registrar.  The Trustee may make reasonable rules for action by or at a meeting
of Holders.  The Paying Agent or
Registrar may make reasonable rules for its functions.

 

Section 10.07.  Payment
Date Other Than a Business Day.  Except as otherwise provided with respect to a series of Securities, if
any date for payment of Principal or interest on any Security shall not be a
Business Day at any place of payment, then payment of Principal of or interest
on such Security, as the case may be, need not be made on such date, but may be
made on the next succeeding Business Day at any place of payment with the same
force and effect as if made on such date and no interest shall accrue in
respect of such payment for the period from and after such date.

 

Section 10.08.  Governing
Law.  The
laws of the State of New York shall govern this Indenture and the Securities.

 

Section 10.09.  No Adverse
Interpretation of Other Agreements.  This Indenture may not be used to interpret another indenture or loan or
debt agreement of the Company or any Subsidiary of the Company.  Any such indenture or agreement may not be
used to interpret this Indenture.

 

Section 10.10. 
Successors.  All agreements of the Company in this Indenture and the Securities shall
bind its successors.  All agreements of
the Trustee in this Indenture shall bind its successors.

 

58

 

Section 10.11.  Duplicate
Originals.  The parties may sign any number of copies of this Indenture.  Each signed copy shall be an original, but
all of them together represent the same agreement.

 

Section 10.12. 
Separability.  In case any provision in this Indenture or in the Securities shall be
invalid, illegal or unenforceable, the validity, legality and enforceability of
the remaining provisions shall not in any way be affected or impaired thereby.

 

Section 10.13.  Table of
Contents, Headings, Etc.  The Table of Contents and headings of the Articles and Sections of this
Indenture have been inserted for convenience of reference only, are not to be
considered a part hereof and shall in no way modify or restrict any of the
terms and provisions hereof.

 

Section 10.14. 
Incorporators, Stockholders, Officers and Directors of Company Exempt
from Individual Liability.  No recourse under or upon any obligation, covenant or agreement
contained in this Indenture or any indenture supplemental hereto, or in any
Security or any coupons appertaining thereto, or because of any indebtedness
evidenced thereby, shall be had against any incorporator, as such or against
any past, present or future stockholder, officer, director or employee, as
such, of the Company or of any successor, either directly or through the
Company or any successor, under any rule of law, statute or constitutional
provision or by the enforcement of any assessment or by any legal or equitable
proceeding or otherwise, all such liability being expressly waived and released
by the acceptance of the Securities and the coupons appertaining thereto by the
holders thereof and as part of the consideration for the issue of the
Securities and the coupons appertaining thereto.

 

Section 10.15.  Judgment
Currency.  The Company agrees, to the fullest extent that it may effectively do so
under applicable law, that (a) if for the purpose of obtaining judgment in
any court it is necessary to convert the sum due in respect of the Principal of
or interest on the Securities of any series (the “Required
Currency”) into a currency in which a judgment will be rendered (the
“Judgment Currency”), the rate of
exchange used shall be the rate at which in accordance with normal banking
procedures the Trustee could purchase in The City of New York the Required
Currency with the Judgment Currency on the day on which final unappealable
judgment is entered, unless such day is not a Business Day, then, to the extent
permitted by applicable law, the rate of exchange used shall be the rate at
which in accordance with normal banking procedures the Trustee could purchase
in The City of New York the Required Currency with the Judgment Currency on the
Business Day preceding the day on which final unappealable judgment is entered
and (b) its obligations under this Indenture to make payments in the
Required Currency (i) shall not be discharged or satisfied by any tender,
or any recovery pursuant to any judgment (whether or

 

59

 

not entered in accordance with subsection (a)), in
any currency other than the Required Currency, except to the extent that such
tender or recovery shall result in the actual receipt, by the payee, of the
full amount of the Required Currency expressed to be payable in respect of such
payments, (ii) shall be enforceable as an alternative or additional cause
of action for the purpose of recovering in the Required Currency the amount, if
any, by which such actual receipt shall fall short of the full amount of the
Required Currency so expressed to be payable and (iii) shall not be
affected by judgment being obtained for any other sum due under this Indenture.

 

60

 

SIGNATURES

 

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

 

	
  (SEAL)

  	
   

  	
  COBALT INTERNATIONAL ENERGY, INC.

  
	
   

  	
   

  	
   

  	
  as the Company

  
	
  Attest:

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
   

  	
  Title:

  
	
   

  	
   

  	
   

  
	
  (SEAL)

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Attest:

  	
   

  	
   

  	
  as
  the Trustee

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
   

  	
  Title:

  
					

 

61

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