Document:

Unassociated Document

     

    
      SECOND
AMENDMENT TO AMENDED AND RESTATED CREDIT AGREEMENT

       

      This
Second Amendment to Amended and Restated Credit Agreement (this "Amendment Agreement")
is dated as of June 23, 2009 by and among Lower Lakes Towing Ltd., Lower Lakes
Transportation Company, Grand River Navigation Company, Inc., the other Credit
Parties signatory hereto, the other Lenders signatory hereto and General
Electric Capital Corporation, as Agent.

       

      W I T N E
S S E T H :

       

      WHEREAS,
the Credit Parties, the lenders party thereto, and the Agent entered into that
certain Amended and Restated Credit Agreement dated as of February 13, 2008 and
amended as of June 24,2008 (the "Credit
Agreement");

       

      WHEREAS,
the Lenders and the Agent have agreed to further amend the Credit Agreement to
effect certain changes thereto requested by the Credit Parties as set forth
herein.

       

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

       

      1.             Defined
Terms.  Capitalized terms used herein and not otherwise defined
herein shall have the meanings attributed to such terms in the Credit Agreement,
as amended hereby.

       

      2.             Amendments to Credit
Agreement.  The Credit Agreement is hereby amended as
follows:

       

      2.1.          Section
1.1(a)(ii) of the Credit Agreement is hereby deleted in its entirety and
replaced with the following:

       

      (ii)           For
the period from April 1 through July 31 of each calendar year, the Cdn.
Revolving Lenders shall establish (on a several and not joint or joint and
several basis) in favor of Lower Lakes a seasonal overadvance revolving credit
facility (the "Cdn.
Seasonal Facility") which shall be subject to the terms contained herein
that are applicable to the Cdn. Revolving Loan.  For greater
certainty, the Cdn. Seasonal Facility is a sub facility of the Cdn. Revolving
Credit Facility and shall not be subject to the limits of the Cdn. Borrowing
Base but shall be subject to the Cdn. Maximum Amount.  The Cdn.
Seasonal Facility shall be in an amount not to exceed (all as determined in Cdn.
Dollars using, where applicable, the Cdn. Dollar Equivalent Amount) the lesser
of: (A) US $10,000,000 less the principal amount outstanding under the US
Seasonal Facility, or (B)  75% of the aggregate Fair Market Value of the
Cdn. Vessels owned by the Cdn. Credit Parties and the US Owned Vessels less the
aggregate of (i) the principal amount outstanding under the Cdn. Term Loan, the
principal amount outstanding under the US Term Loan and the principal amount
outstanding under the Engine Term Loan, (ii) the aggregate amount of the
obligations secured by Liens attaching to the Cdn. Vessels and the US Owned
Vessels that have priority to the Liens securing the Obligations, and (iii) the
principal amount outstanding under the US Seasonal Facility; provided, that if
Lower Lakes has certified to the Agent in the applicable Cdn. Notice of
Revolving Credit Advance that the all or a portion of the proceeds of the
related Cdn. Revolving Credit Advance will be directly applied to pay any
obligation described in clause (ii) above, then such obligation will not be
counted in determining availability for such Advance.  The aggregate
of all Cdn. Revolving Credit Advances (including Advances under the Cdn.
Seasonal Facility) shall at no time exceed the Cdn. Maximum Amount.

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      2.2.           Section
1.1(c)(ii) of the Credit Agreement is hereby deleted in its entirety and
replaced with the following:

       

      (ii)           For
the period from April 1 through July 31 of each calendar year, the US Revolving
Lenders shall establish (on a several and not joint or joint and several basis)
in favor of LLTC a seasonal overadvance revolving credit facility (the "US Seasonal
Facility") which shall be subject to the terms contained herein that are
applicable to the US Revolving Loan.  The  amount
outstanding under the US Seasonal Facility shall be in an amount not to exceed
(all as determined in US Dollars using, where applicable, the US Dollar
Equivalent Amount) the lesser of: (A) US $10,000,000 less amounts outstanding
under the Cdn. Seasonal Facility, or (B) 75% of the aggregate Fair Market Value
of the Cdn. Vessels owned by the Cdn. Credit Parties and the US Owned Vessels
less the aggregate of (i) the principal amount outstanding under the Cdn. Term
Loan, the principal amount outstanding under the US Term Loan and the principal
amount outstanding under the Engine Term Loan, (ii) the aggregate amount of the
obligations secured by Liens attaching to the Cdn. Vessels and the US Owned
Vessels that have priority to the Liens securing the Obligations, and (iii)
amounts outstanding under the Cdn. Seasonal Facility; provided, that if
LLTC has certified to the Agent in the applicable US Notice of Revolving Credit
Advance that the all or a portion of the proceeds of the related US Revolving
Credit Advance will be directly applied to pay any obligation described in
clause (ii) above, then such obligation will not be counted in determining
availability for such Advance.  The aggregate principal amount of all
US Revolving Credit Advances (including Advances under the US Seasonal Facility)
shall at no time exceed the US Maximum Amount.

       

      2.3.           Section
6.7 of the Credit Agreement is hereby amended by deleting therein to
"US$300,000" and replacing it with a reference to "US$500,000".

       

      2.4.           Annex
A to the Credit Agreement is hereby amended by deleting the definitions of
Capital Expenditures, EBITDA, Fixed Charge Coverage Ratio, Fixed Charges, Funded
Debt and Working Capital in their entirety and replacing them with the
following:

       

      "Capital Expenditures"
means, with respect to any Person, all expenditures (by the expenditure of cash
or the incurrence of Indebtedness) by such Person during any measuring period
for any fixed assets or improvements or for replacements, substitutions or
additions thereto, that have a useful life of more than one year and that are
required to be capitalized under GAAP; provided, that for
the purposes of paragraphs (a) and (d) of Annex G, (i) any
proceeds in excess of $15,000,000 arising in respect of either the warrant
exercise program of Rand or other capital securities issued by Rand which are
contributed to LLTC and applied thereby to reduce the outstanding balance of the
US Revolving Credit Facility shall be deducted from Capital Expenditures in the
year in which such amounts are so applied and (ii) Capital Expenditures shall
include both paid and accrued amounts, including such amounts relating to dry
dock expenses.

       

      
        
          
          

        

        
          2

          
            

          

        

        
          
          

        

      

       

      "EBITDA" means, with
respect to any Person for any fiscal period, without duplication, an amount
equal to (a) consolidated net income of such Person for such period, determined
in accordance with GAAP, minus (b) the sum of
(i) income tax credits, (ii) interest income, (iii) gain from extraordinary
items for such period, (iv) any aggregate net gain (but not any aggregate net
loss) during such period arising from the sale, exchange or other disposition of
capital assets by such Person (including any fixed assets, whether tangible or
intangible, all inventory sold in conjunction with the disposition of fixed
assets and all securities), and (v) any other non-cash gains that have been
added in determining consolidated net income, in each case to the extent
included in the calculation of consolidated net income of such Person for such
period in accordance with GAAP, but without duplication, plus (c) the sum of
(i) any provision for income taxes, (ii) Interest Expense, (iii) depreciation
and amortization for such period, (iv) amortized debt discount for such period,
(v) non-cash deferred transaction costs incurred as of the Original Closing Date
with respect to the transactions contemplated by the Original Credit Agreement
not to exceed $1,000,000 in the aggregate, (vi) any non-cash (valuation) losses
that have not been deducted in determining consolidated net income (including
losses on interest rate swap contract valuations, write-offs of intangible
assets to fair value, write-offs of goodwill to fair value and valuation
allowances for deferred taxes), in each case to the extent included in the
calculation of consolidated net income of such Person for such period in
accordance with GAAP, but without duplication, (vii) any non-cash lease
deferrals in such period and (viii) the amount of any deduction to consolidated
net income as the result of any grant of any Stock to any member of the
management or director of such Person, in each case to the extent included in
the calculation of consolidated net income of such Person for such period in
accordance with GAAP, but without duplication.  For purposes of this
definition, the following items shall be excluded in determining consolidated
net income of a Person: (1) the income (or deficit) of any other Person accrued
prior to the date it became a Subsidiary of, or was amalgamated or consolidated
into, such Person or any of such Person's Subsidiaries; (2) the income (or
deficit) of any other Person (other than a Subsidiary) in which such Person has
an ownership interest, except to the extent any such income has actually been
received by such Person in the form of cash dividends or distributions; (3) the
undistributed earnings of any Subsidiary of such Person to the extent that the
declaration or payment of dividends or similar distributions by such Subsidiary
is not at the time permitted by the terms of any contractual obligation or
requirement of law applicable to such Subsidiary; (4) any restoration to income
of any contingency reserve, except to the extent that provision for such reserve
was made out of income accrued during such period; (5) any write-up of any
asset; (6) any net gain from the collection of the proceeds of life insurance
policies; (7) any net gain arising from the acquisition of any securities, or
the extinguishment, under GAAP, of any Indebtedness, of such Person; (8) in the
case of a successor to such Person by consolidation or amalgamation or as a
transferee of its assets, any earnings of such successor prior to such
consolidation, amalgamation or transfer of assets; (9) any fees and
out-of-pocket expenses incurred in connection with the Second Amendment to
Amended and Restated Credit Agreement dated as of June 23, 2009; and (10) any
deferred credit representing the excess of equity in any Subsidiary of such
Person at the date of acquisition of such Subsidiary over the cost to such
Person of the investment in such Subsidiary.

       

      
        
          
          

        

        
          3

          
            

          

        

        
          
          

        

      

       

      "Fixed Charge Coverage
Ratio" means, with respect to any Person for any fiscal period, the ratio
of EBITDA less Capital Expenditures (excluding Capital Expenditures financed
through specifically arranged financings approved of by the Lenders in writing)
to Fixed Charges; provided, that for
calculations made as of the end of each Fiscal Year, Capital Expenditures
incurred in the first Fiscal Quarter of such Fiscal Year shall not be deducted
from EBITDA.

       

      "Fixed Charges" means,
with respect to any Person for any fiscal period, (a) the aggregate of all
Interest Expense paid or accrued during such period, plus (b) scheduled
payments of principal with respect to Indebtedness during such period, plus (c) Taxes paid
in cash with respect to such fiscal period (excluding franchise taxes paid which
are accounted for as a general and administrative expense and are included in
EBITDA), plus
(d) dividends paid in cash in such period in respect of the Preferred
Equity.

       

      "Funded Debt" means,
with respect to any Person, without duplication, all Indebtedness for borrowed
money evidenced by notes, bonds, debentures, or similar evidences of
Indebtedness and that by its terms matures more than one year from, or is
directly or indirectly renewable or extendible at such Person's option under a
revolving credit or similar agreement obligating the lender or lenders to extend
credit over a period of more than one year from the date of creation thereof,
and specifically including Capital Lease Obligations, current maturities of
long-term debt, revolving credit and short-term debt extendible beyond one year
at the option of the debtor, and also including, in the case of the Borrowers,
the Obligations and, without duplication, Guaranteed Indebtedness consisting of
guaranties of Funded Debt of other Persons, but excluding the guaranty by LLTC
of the Funded Debt of Voyageur Maritime Trading Inc.

       

      "Working Capital"
means, on a consolidated basis, Parent and its Subsidiaries' assets (excluding
cash balances, interest rate swap valuation assets and deferred income tax
assets) less current liabilities (excluding Revolving Loan Advances, interest
rate swap valuation liabilities, liabilities converted to equity and deferred
income tax liabilities).

       

      2.5.           Annex
G to the Credit Agreement is hereby amended by deleting paragraphs (a) and (c)
thereof in their entirety and replacing them with the following:

       

      (a)           Minimum Fixed Charge
Coverage Ratio.  Rand shall have on a consolidated basis, (i)
for the fiscal year to date periods then ended as of June 30, 2008, September
30, 2008, and December 31, 2008, a Fixed Charge Coverage Ratio for such fiscal
year to date period then ended of 2.90:1.00, 2.75:1.00 and 2.45:1.00,
respectively and (ii) at the end of each Fiscal Quarter set forth below, a Fixed
Charge Coverage Ratio for the 12-month period then ended of not less than the
following:

       

      
        	
                Period

              	
                Ratio

              
	
                June
      30, 2009 through December 31, 2011

              	
                1.10:1.0

              
	
                March
      31, 2012 through December 31, 2012

              	
                1.15:1.0

              
	
                March
      31, 2013 and for each Fiscal Quarter ending thereafter

              	
                1.20:1.0

              

      

       

      
        
          
          

        

        
          4

          
            

          

        

        
          
          

        

      

       

      (c)           Maximum Senior Funded Debt
to EBITDA Ratio.  Rand shall have on a consolidated basis, at
the end of each Fiscal Year set forth below, a Senior Funded Debt to EBITDA
Ratio as of the last day of such Fiscal Year and for the 12-month period then
ended of less than the following:

       

      
        	
                Fiscal
      Years

              	
                Ratio

              
	
                Fiscal
      Year 2010

              	
                3.50:1.0

              
	
                Fiscal
      Year 2011

              	
                3.20:1.0

              
	
                Fiscal
      Year 2012 and

                each
      Fiscal Year ending thereafter

              	
                3.00:1.0

              

      

       

      3.             Conditions to
Effectiveness.  The effectiveness of this Amendment Agreement
is expressly conditioned upon the execution of this Agreement by the Credit
Parties, the Agent and each Lender and the satisfaction of the following
conditions:

       

      (a)           Reaffirmation.  Each
Credit Party shall have executed and delivered the Reaffirmation of Guaranty in
the form of Exhibit
A attached hereto.

       

      (b)           Amendment
Fee.  The Borrowers shall have paid the Agent an amendment fee
of  0.50% times the aggregate Commitments, to be paid ratably among
the Lenders.

       

      (c)           Other
Documents.  The Borrowers shall provide such other documents,
instruments and agreements as the Agent may reasonably request.

       

      4.             Representations and
Warranties of the Credit Parties.

       

      4.1.           Each
of the Credit Parties represents and warrants that the execution, delivery and
performance by each of the Credit Parties of this Amendment Agreement and the
documents and instruments delivered in connection therewith have been duly
authorized by all necessary corporate action and that this Amendment Agreement
is a legal, valid and binding obligation of such Credit Party, enforceable
against such Credit Party in accordance with its terms, except as the
enforcement thereof may be subject to (a) the effect of any applicable
bankruptcy, insolvency, reorganization, moratorium or similar law affecting
creditors’ rights generally and (b) general principles of equity (regardless of
whether such enforcement is sought in a proceeding in equity or at
law).

       

      4.2.           Each
of the Credit Parties hereby certifies that each of the representations and
warranties contained in the Credit Agreement and the other Loan Documents (as
amended through the date hereof) is true and correct in all material respects on
and as of the date hereof as if made on the date hereof, except to the extent
that any such representation or warranty is stated to relate solely to an
earlier date, in which case such representation or warranty shall be true and
correct on and as of such earlier date.

       

      
        
          
          

        

        
          5

          
            

          

        

        
          
          

        

      

       

      5.             Reference to and Effect on
the Credit Agreement.

       

      5.1.           Upon
the effectiveness of this Amendment Agreement, each reference in the Credit
Agreement to "this Agreement," "hereunder," "hereof," "herein" or words of like
import and each reference to the Credit Agreement in each Loan Document shall
mean and be a reference to the Credit Agreement as amended hereby.

       

      5.2.           Except
as specifically amended above, all of the terms, conditions and covenants of the
Credit Agreement and the other Loan Documents shall remain unaltered and in full
force and effect and shall be binding upon the Credit Parties in all respects
and are hereby ratified and confirmed.

       

      5.3.           The
execution, delivery and effectiveness of this Amendment Agreement shall not
operate as a waiver of (a) any right, power or remedy of any Lender or the Agent
under the Credit Agreement or any of the other Loan Documents, or (b) any Event
of Default or Default under the Credit Agreement.

       

      6.             CHOICE OF
LAW.  THIS AMENDMENT AGREEMENT SHALL BE CONSTRUED IN ACCORDANCE
WITH THE INTERNAL LAWS (AND NOT THE LAW OF CONFLICTS) OF THE STATE OF NEW
YORK.

       

      7.             Execution in
Counterparts.  This Amendment Agreement may be executed in any
number of counterparts and by different parties hereto in separate counterparts,
each of which when so executed shall be deemed to be an original and all of
which taken together shall constitute one and the same agreement.

       

      8.             Headings.  Section
headings in this Amendment Agreement are included herein for convenience of
reference only and shall not constitute a part of this Amendment Agreement for
any other purposes.

       

      [signature
page follows]

       

      
        
          
          

        

        
          6

          
            

          

        

        
          
          

        

      

       

      IN
WITNESS WHEREOF, the Credit Parties, the Agent and the Lenders have executed
this Amendment Agreement as of the date first above written.

       

      
        
          	 	
                  LOWER
      LAKES TOWING LTD.

                	 
	 	 	 	 
	 	 	 	 
	
                   
      

                	
                  By: 

                	/s/
      Scott Bravener  	 
	 
      	 
      	 
      	 
      
	 
      	
                  Title: 

                	President 
      	 
      
	 	 	 	 
	 	 	 	 

        

      

      
        	 	
                
                  LOWER
      LAKES TRANSPORTATION COMPANY

                

              	 
	 	 	 	 
	 	 	 	 
	
                 
      

              	
                By: 

              	/s/
      Scott Bravener  	 
	 
      	 
      	 
      	 
      
	 
      	
                Title: 

              	President 
      	 
      
	 	 	 	 
	 	 	 	 

        	 	
                
                  GRAND
      RIVER NAVIGATION COMPANY, INC.

                

              	 
	 	 	 	 
	 	 	 	 
	
                 
      

              	
                By: 

              	/s/
      Laurence S. Levy  	 
	 
      	 
      	 
      	 
      
	 
      	
                Title: 

              	Vice
      President  	 
      
	 	 	 	 
	 	 	 	 

        	 	
                
                  RAND
      LOGISTICS, INC.

                

              	 
	 	 	 	 
	 	 	 	 
	
                 
      

              	
                By: 

              	/s/
      Joseph W. McHugh, Jr.  	 
	 
      	 
      	 
      	 
      
	 
      	
                Title: 

              	Chief
      Financial Officer  	 
      
	 	 	 	 
	 	 	 	 

      

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      
        	 	
                
                  
                    RAND
      LL HOLDINGS CORP.

                  

                

              	 
	 	 	 	 
	 	 	 	 
	
                 
      

              	
                By: 

              	/s/
      Laurence S. Levy    	 
	 
      	 
      	 
      	 
      
	 
      	
                Title: 

              	President   
      	 
      
	 	 	 	 
	 	 	 	 

        	 	
                
                  
                    RAND
      FINANCE CORP.

                  

                

              	 
	 	 	 	 
	 	 	 	 
	
                 
      

              	
                By: 

              	/s/
      Joseph W. McHugh, Jr.    	 
	 
      	 
      	 
      	 
      
	 
      	
                Title: 

              	Treasurer 
      	 
      
	 	 	 	 
	 	 	 	 

        	 	
                
                  
                    GENERAL
      ELECTRIC CAPITAL CORPORATION, as Agent, L/C Guarantor, Documentation Agent
      and Lender

                  

                

              	 
	 	 	 	 
	 	 	 	 
	
                 
      

              	
                By: 

              	/s/
      Joseph Tunney	 
	 
      	 
      	 
      	 
      
	 
      	
                Title: 

              	Duly
      Authorized Signatory	 
      
	 	 	 	 
	 	 	 	 

        	 	
                
                  
                    NATIONAL
      CITY BANK, as Co-Syndication Agent and Lender

                  

                

              	 
	 	 	 	 
	 	 	 	 
	
                 
      

              	
                By: 

              	 
      	 
	 
      	 
      	 
      	 
      
	 
      	
                Title: 

              	 
      	 
      
	 	 	 	 
	 	 	 	 

      

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      
        	 	
                
                  
                    
                      NATIONAL
      CITY BANK, CANADA BRANCH, as Lender

                    

                  

                

              	 
	 	 	 	 
	 	 	 	 
	
                 
      

              	
                By: 

              	 
      	 
	 
      	 
      	 
      	 
      
	 
      	
                Title: 

              	 
      	 
      
	 	 	 	 
	 	 	 	 

        	 	
                
                  
                    
                      KBC
      BANK NV, as Lender

                    

                  

                

              	 
	 	 	 	 
	 	 	 	 
	
                 
      

              	
                By: 

              	/s/
      Sandra T. Johnson	 
	 
      	 
      	 
      	 
      
	 
      	
                Title: 

              	Managing
      Director	 
      
	 	 	 	 
	 	 	 	 

        	
                 
      

              	
                By: 

              	/s/
      Robert Snauffer	 
	 
      	 
      	 
      	 
      
	 
      	
                Title: 

              	Managing
      DirectorExhibit 4.1 

PHOTRONICS, INC. 

DEBT SECURITIES

_____________

INDENTURE 

Dated as of
__________________
 
_____________

THE BANK OF NEW YORK MELLON

Trustee 

CROSS REFERENCE TABLE

Reconciliation and tie between Trust
Indenture Act of 1939 and Indenture 

	Trust Indenture Act
      Section 	                    
    	Indenture Section 
	       	§
      310  	(a)(1)  		   
       609  
		  	(a)(2)  		     609  
		  	(b)  		   
       609, 610  
		§
      312  	(c) 
    		     701  
		§
      314  	(a)  		   
       703  
		  	(a)(4)  		     1005  
		  	(c)(1)  		   
       102  
		  	(c)(2)  		     102  
		  	(e)  		   
       102  
		§
      315  	(b) 
    		     516  
		§
      316  	(a) (last sentence)  		   
       101  
		  	(a)(1)(A)  		     502, 512  
		  	(a)(1)(B)  		   
       513  
		  	(b) 
    		     508  
		§
      317  	(a)(1)  		   
       503  
		  	(a)(2)  		     504  
		§
      318  	(a)  		   
       111  
		  	(c) 
    		     111  

____________________

NOTE: This cross-reference table shall
not, for any purpose, be deemed to be a part of the Indenture. 

TABLE OF
CONTENTS 

	  	Page 
	ARTICLE
      ONE 
	DEFINITIONS AND OTHER PROVISIONS OF GENERAL APPLICATION
    
	  
	SECTION 101. Definitions  	1 
	SECTION 102.
      Compliance Certificates and Opinions  	10 
	SECTION 103. Form of Documents Delivered to Trustee 
	10 
	SECTION 104.
      Acts of Holders  	11
  

	SECTION 105. Notices, etc., to Trustee and Company 	12 
	SECTION 106.
      Notice to Holders; Waiver 	13 
	SECTION 107. Effect of Headings and Table of Contents 	14 
	SECTION 108.
      Successors and Assigns 	14 
	SECTION 109. Separability Clause 	14 
	SECTION 110.
      Benefits of Indenture 	14 
	SECTION 111. Governing Law 	14 
	SECTION 112.
      Legal Holidays 	14 
	  
	ARTICLE
      TWO 
	SECURITIES FORMS 
	 
	SECTION 201. Forms of Securities 	14 
	SECTION 202.
      Form of Trustee’s Certificate of Authentication 	15 
	SECTION 203. Securities Issuable in Global Form 	15 
	  
	ARTICLE
      THREE 
	THE
      SECURITIES 
	 
	SECTION 301. Amount Unlimited; Issuable in Series 	16 
	SECTION 302.
      Denominations 	20 
	SECTION 303. Execution, Authentication, Delivery and Dating
    	20 
	SECTION 304.
      Temporary Securities 	21 
	SECTION 305. Registration, Registration of Transfer and
      Exchange 	23 
	SECTION 306.
      Mutilated, Destroyed, Lost and Stolen Securities 	25 
	SECTION 307. Payment of Interest; Interest Rights Preserved;
      Optional Interest Reset  	26 
	SECTION 308.
      Optional Extension of Maturity 	28 
	SECTION 309. Persons Deemed Owners 	29 
	SECTION 310.
      Cancellation 	29
      
	SECTION 311. Computation of Interest 	30 
	SECTION 312.
      Currency and Manner of Payments in Respect of Securities 	30 
	SECTION 313. Appointment and Resignation of Successor Exchange Rate
      Agent 	32 
	SECTION 314.
      CUSIP Numbers 	33
  

ARTICLE FOUR 
SATISFACTION AND
DISCHARGE 

	SECTION 401. Satisfaction and Discharge of Indenture 	33 
	SECTION 402.
      Application of Trust Funds 	34 
	 
	ARTICLE
      FIVE 
	REMEDIES 
	 
	SECTION 501. Events of Default 	35 
	SECTION 502.
      Acceleration of Maturity; Rescission and Annulment 	36 
	SECTION 503. Collection of Indebtedness and Suits for Enforcement
      by Trustee 	37 
	SECTION 504.
      Trustee May File Proofs of Claim 	38 
	SECTION 505. Trustee May Enforce Claims Without Possession of
      Securities or Coupons  	39 
	SECTION 506.
      Application of Money Collected 	39
      
	SECTION 507. Limitation on Suits 	39
  
	SECTION 508.
      Unconditional Right of Holders to Receive Principal, Premium and
      Interest  	40
  

	SECTION 509. Restoration of Rights and Remedies 	40 
	SECTION 510.
      Rights and Remedies Cumulative 	40 
	SECTION 511. Delay or Omission Not Waiver 	40 
	SECTION 512.
      Control by Holders of Securities 	41 
	SECTION 513. Waiver of Past Defaults 	41 
	SECTION 514.
      Waiver of Stay or Extension Laws 	41 
	SECTION 515. Undertaking to Pay Costs 	41 
	SECTION 516.
      Notice of Defaults 	42 
	 
	ARTICLE
      SIX 
	THE
      TRUSTEE 
	 
	SECTION 601. Duties and Responsibilities of Trustee 	42 
	SECTION 602.
      Reliance on Documents, Opinions, etc. 	43 
	SECTION 603. No Responsibility for Recitals, etc. 	44 
	SECTION 604.
      Trustee, Paying Agents or Security Registrar May Own Securities 	44 
	SECTION 605. Monies to Be Held in Trust 	44 
	SECTION 606.
      Compensation and Expenses of Trustee 	45 
	SECTION 607. Officers’ Certificate as Evidence 	46 
	SECTION 608.
      Conflicting Interests of Trustee 	46 
	SECTION 609. Eligibility of Trustee 	46 
	SECTION 610.
      Resignation or Removal of Trustee 	46 
	SECTION 611. Acceptance by Successor Trustee 	47 
	SECTION 612.
      Succession by Merger, etc. 	48 
	SECTION 613. Preferential Collection of Claims 	48 
	SECTION 614.
      Trustee’s Application for Instructions from the Company 	49 
	SECTION 615. Appointment of Authenticating Agent 	49 

ii 

	ARTICLE SEVEN 
	HOLDERS’ LISTS AND REPORTS BY TRUSTEE AND COMPANY 
	 
	SECTION 701. Disclosure of Names and Addresses of Holders
	50 
	SECTION 702.
      Reports by Trustee 	51 
	SECTION 703. Reports by Company 	51 
	SECTION 704.
      Calculation of Original Issue Discount 	51 
	 
	ARTICLE
      EIGHT 
	CONSOLIDATION, MERGER, CONVEYANCE OR TRANSFER 
	 
	SECTION 801. Company May Consolidate, etc., Only on Certain
      Terms 	52 
	SECTION 802.
      Successor Person Substituted 	52 
	SECTION 803. Opinion of Counsel to be Given to the Trustee
    	53 
	 
	ARTICLE
      NINE 
	SUPPLEMENTAL INDENTURES 
	 
	SECTION 901. Supplemental Indentures Without Consent of
      Holders 	53 
	SECTION 902.
      Supplemental Indentures with Consent of Holders 	54 
	SECTION 903. Execution of Supplemental Indentures 	55 
	SECTION 904.
      Effect of Supplemental Indentures 	56
  

	SECTION 905. Conformity with Trust Indenture Act 	56 
	SECTION 906.
      Reference in Securities to Supplemental Indentures 	56
      
	SECTION 907. Notice of Supplemental Indentures 	56 
	SECTION 908.
      Effect on Senior Indebtedness 	56
      
	 
	ARTICLE
      TEN 
	COVENANTS 
	 
	SECTION 1001. Payment of Principal, Premium and Interest 	56 
	SECTION 1002.
      Maintenance of Office or Agency 	56
      
	SECTION 1003. Appointments to Fill Vacancies in Trustee’s
      Office 	57 
	SECTION 1004.
      Provisions as to Paying Agent 	57 
	SECTION 1005. Existence 	58 
	SECTION 1006.
      Maintenance of Properties 	58 
	SECTION 1007. Payment of Taxes and Other Claims 	59 
	SECTION 1008.
      Stay, Extension and Usury Laws 	59 
	SECTION 1009. Compliance Certificate 	59 
	SECTION 1010.
      Waiver of Certain Covenants 	60 
	SECTION 1011. Additional Amounts 	60 
	 
	ARTICLE
      ELEVEN 
	REDEMPTION OF SECURITIES 
	 
	SECTION 1101. Applicability of Article 	61 
	SECTION 1102.
      Election to Redeem; Notice to Trustee 	61 
	SECTION 1103. Selection by Trustee of Securities to Be
      Redeemed 	61 

	SECTION 1104. Notice of Redemption 	61 
	SECTION 1105. Deposit of Redemption Price 	63 
	SECTION 1106. Securities Payable on Redemption Date 	63 
	SECTION 1107. Securities Redeemed in Part 	64 

iii 

	ARTICLE
      TWELVE 
	SINKING
      FUNDS 
	 
	SECTION 1201. Applicability of Article 	64 
	SECTION 1202.
      Satisfaction of Sinking Fund Payments with Securities 	64 
	SECTION 1203. Redemption of Securities for Sinking Fund 	65 
	 
	ARTICLE
      THIRTEEN 
	REPAYMENT AT THE OPTION OF HOLDERS 
	 
	SECTION 1301. Applicability of Article 	65 
	SECTION 1302.
      Repayment of Securities 	65 
	SECTION 1303. Exercise of Option 	66 
	SECTION 1304.
      When Securities Presented for Repayment Become Due and Payable 	66 
	SECTION 1305. Securities Repaid in Part 	67 

   
	ARTICLE
      FOURTEEN
DEFEASANCE AND COVENANT DEFEASANCE 
	 
	SECTION
      1401. Applicability of Article; Company’s Option to Effect Defeasance or
      Covenant Defeasance 	67 
	SECTION 1402.
      Defeasance and Discharge 	67 
	SECTION 1403. Covenant Defeasance 	68 
	SECTION 1404.
      Conditions to Defeasance or Covenant Defeasance 	68 
	SECTION 1405. Deposited Money and Government Obligations to Be Held
      in Trust; Other  	
	   
       Miscellaneous Provisions 	70 
	SECTION 1406.
      Reinstatement 	71 
	 
	ARTICLE
      FIFTEEN 
	MEETINGS
      OF HOLDERS OF SECURITIES 
	 
	SECTION 1501. Purposes for Which Meetings May Be Called 	71 
	SECTION 1502.
      Call, Notice and Place of Meetings 	72 
	SECTION 1503. Persons Entitled to Vote at Meetings 	72 
	SECTION 1504.
      Quorum; Action 	72 
	SECTION 1505. Determination of Voting Rights; Conduct and
      Adjournment of Meetings 	73 
	SECTION 1506.
      Counting Votes and Recording Action of Meetings 	74
  

iv 

	ARTICLE SIXTEEN
  
	SUBORDINATION OF
      SECURITIES 
	 
	SECTION 1601.
      Agreement to Subordinate 	74 
	SECTION 1602. Payment over of
      Proceeds upon Dissolution, etc. 	75 
	SECTION 1603.
      Prior Payment to Senior Indebtedness upon Acceleration of
      Securities 	76 
	SECTION 1604. No Payment When
      Senior Indebtedness in Default 	76 
	SECTION 1605.
      Payment Permitted If No Default 	77 
	SECTION 1606. Subrogation to
      Rights of Holders of Senior Indebtedness 	77 
	SECTION 1607.
      Provisions Solely to Define Relative Rights 	77
      
	SECTION 1608. Trustee to
      Effectuate Subordination 	77
  
	SECTION 1609. No
      Waiver of Subordination Provisions 	78
      
	SECTION 1610. Notice to
      Trustee 	78
  
	SECTION 1611.
      Reliance on Judicial Order or Certificate of Liquidating Agent 	79
      
	SECTION 1612. Trustee Not
      Fiduciary for Holders of Senior Indebtedness 	79
  
	SECTION 1613.
      Rights of Trustee as Holder of Senior Indebtedness; Preservation of
      Trustee’s Rights 	79
      
	SECTION 1614. Article Applicable
      to Paying Agents 	79
  
	 
	EXHIBIT A - FORMS
      OF CERTIFICATION 	A-1-2
      

v 

INDENTURE 

     INDENTURE,
dated as of _________, between Photronics, Inc., a Connecticut corporation (the
“Company”),
having its principal office at 15 Secor Road, Brookfield, CT 06804, and The Bank
of New York Mellon, a New York banking corporation, as trustee hereunder (the
“Trustee”),
having its Corporate Trust Office at One Wall Street, New York, New York 10286.

RECITALS OF THE COMPANY

     WHEREAS, the
Company has duly authorized the execution and delivery of this Indenture to
provide for the issuance from time to time of its subordinated debt securities
(the “Securities”), issuable as provided in this Indenture, and all things necessary to
make this Indenture a valid agreement of the Company, in accordance with its
terms, have been done; and 

     WHEREAS, this Indenture will be subject to, and governed by,
the provisions of the Trust Indenture Act of 1939, as amended, that are required
to be part of this Indenture and shall, to the extent applicable, be governed by
such provisions. 

     NOW, THEREFORE, THIS INDENTURE
WITNESSETH: 

     Each party
agrees as follows for the benefit of the other party and for the equal and
ratable benefit of the Holders of the Company’s Securities and coupons:

ARTICLE ONE 
DEFINITIONS AND OTHER PROVISIONS OF GENERAL APPLICATION

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

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

     (2) all other terms used herein which
are defined in the Trust Indenture Act, either directly or by reference therein,
have the meanings assigned to them therein, and the terms “cash transaction” and
“self-liquidating paper,” as used in TIA Section 311, shall have the meanings
assigned to them in the rules of the Commission adopted under the Trust
Indenture Act; 

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

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

     (5) certain terms, used principally in Article Three, Article
Five, Article Six and Article Ten, are defined in those Articles. 

     “Act,” when used with respect to any Holder, has the meaning specified in
Section 104. 

     “Additional
Amounts” means any additional amounts which
are required by a Security or by or pursuant to a Board Resolution, under
circumstances specified therein, to be paid by the Company in respect of certain
taxes imposed on certain Holders and which are owing to such Holders.

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

     “Authenticating Agent” means any authenticating agent appointed by the Trustee
pursuant to Section 615. 

     “Authorized Newspaper” means a newspaper, in the English language or in an official
language of the country of publication, customarily published on each Business
Day, whether or not such newspaper is also published on Saturdays, Sundays or
holidays, and of general circulation in each place in connection with which the
term is used or in the financial community of each such place. Where successive
publications are required to be made in Authorized Newspapers, the successive
publications may be made in the same or in
different newspapers in the same city meeting the foregoing requirements, on any
Business Day. 

     “Bearer Security” means any Security established pursuant to Section 201 which
is payable to bearer. 

     “Board of
Directors” means the board of directors of
the Company, the executive committee or any committee of that board duly
authorized to act hereunder. 

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

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

     “Capital Stock” means, with respect to any corporation, any and all shares,
interests, rights to purchase, warrants, options, participations or other
equivalents of or interests in (however designated) stock issued by that
corporation. 

2 

     “Clearstream” means Clearstream
Banking, société anonyme, and any successor thereto. 

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

     “Company” means the Person named as the “Company” in the first paragraph of this
Indenture until a successor replaces it pursuant to the applicable provisions of
this Indenture and, thereafter, “Company” shall mean such successor or
successors. The foregoing sentence shall likewise apply to any subsequent such
successor or successors. 

     “Company Request” and “Company
Order” means a written request or order
signed in the name of the Company by any two Officers. 

     “Conversion Date” has the meaning
specified in Section 312(d). 

     “Conversion Event” means the cessation of use of (i) a Foreign Currency both by
the government of the country which issued such currency and for the settlement
of transactions by a central bank or other public institutions of or within the
international banking community, (ii) the ECU both within the European Monetary
System and for the settlement of transactions by public institutions of or
within the European Communities or (iii) any Currency unit (or composite
currency) other than the ECU for the purposes for which it was established.

     “Corporate Trust Office” means the principal office of the Trustee at which at any
time its corporate trust business shall be administered, which office at the
date hereof is located at One Wall Street, New York, New York 10286, Attention:
Institutional Trust Services, or such other address as the Trustee may designate
from time to time by notice to the Holders and the Company, or the principal
corporate trust office of any successor Trustee (or such other address as a
successor Trustee may designate from time to time by notice to the Holders and
the Company). 

     “corporation” includes corporations,
associations, companies and business trusts. 

     “coupon” means any interest coupon appertaining to a Bearer Security.

     “Currency” means any currency or currencies, composite currency or currency unit
or currency units, including, without limitation, the ECU, issued by the
government of one or more countries or by any reorganized confederation or
association of such governments. 

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

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

     “Dollar” or “$” means a dollar or other equivalent unit in such coin or currency of the
United States as at the time shall be legal tender for the payment of public and
private debts. 

     “ECU” means the European Currency Unit as defined and revised from time to
time by the Council of the European Communities. 

3 

     “Election Date” has the meaning
specified in Section 312(h). 

     “Euroclear” means Morgan Guaranty Trust Company of New York, Brussels Office, as
operator of the Euroclear System, and any successor thereto. 

     “European Communities” means the European Union, the European Coal and Steel
Community and the European Atomic Energy Community. 

     “European Monetary
System” means the European Monetary System
established by the Resolution of December 5, 1978 of the Council of the European
Communities. 

     “Event of Default” has the meaning
specified in Article Five. 

     “Exchange Rate Agent,” with respect to Securities of any series, means, unless
otherwise specified with respect to any Securities pursuant to Section 301, a
New York clearing house bank designated pursuant to Section 301 or Section 313.

     “Exchange Rate Officer’s
Certificate” means a certificate setting
forth (i) the applicable Market Exchange Rate or the applicable bid quotation
and (ii) the Dollar or Foreign Currency amounts of principal (and premium, if
any) and interest, if any (on an aggregate basis and on the basis of a Security
having the lowest denomination principal amount determined in accordance with
Section 302 in the relevant currency or currency unit), payable with respect to
a Security of any series on the basis of such Market Exchange Rate or the
applicable bid quotation signed by any Officer of the Company. 

     “Foreign Currency” means any Currency, including, without limitation, the ECU,
issued by the government of one or more countries other than the United States
or by any recognized confederation or association of such governments.

     “Government Obligations” means securities which are (i) direct obligations of the
United States or the government which issued the Foreign Currency in which the
Securities of a particular series are payable, for the payment of which its full
faith and credit is pledged or (ii) obligations of a Person controlled or
supervised by and acting as an agency or instrumentality of the United States or
such government which issued the Foreign Currency in which the Securities of
such series are payable, the payment of which is unconditionally guaranteed as a
full faith and credit obligation by the United States or such other government,
which, in either case, are not callable or redeemable at the option of the
issuer thereof, and shall also include a depository receipt issued by a bank or
trust company as custodian with respect to any such Government Obligation or a
specific payment of interest on or principal of any such 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 Government Obligation or
the specific payment of interest on or principal of the Government Obligation
evidenced by such depository receipt. 

     “Holder” means, in the case of a Registered Security, the Person in whose name a
Security is registered in the Security Register and, in the case of a Bearer
Security, the bearer thereof and, when used with respect to any coupon, shall
mean the bearer thereof. 

4 

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

     “Indexed Security” means a Security as to which all or certain interest
payments and/or the principal amount payable at Maturity are determined by
reference to prices, changes in prices, or differences between prices, of
securities, Currencies, intangibles, goods, articles or commodities or by such
other objective price, economic or other measures as are specified pursuant to
Section 301 hereof. 

     “interest,” when used with respect to an Original Issue Discount Security which by
its terms bears interest only after Maturity, shall mean interest payable after
Maturity, and, when used with respect to a Security which provides for the
payment of Additional Amounts pursuant to Section 1011, includes such Additional
Amounts. 

     “Interest Payment Date,” when used with respect to any Security, means the Stated
Maturity of an installment of interest on such Security. 

     “Market Exchange Rate” means, unless otherwise specified with respect to any
Securities pursuant to Section 301, (i) for any conversion involving a Currency
unit on the one hand and Dollars or any Foreign Currency on the other, the
exchange rate between the relevant Currency unit and Dollars or such Foreign
Currency calculated by the method specified pursuant to Section 301 for the
Securities of the relevant series, (ii) for any conversion of Dollars into any
Foreign Currency, the noon buying rate for such Foreign Currency for cable
transfers quoted in New York City as certified for customs purposes by the
Federal Reserve Bank of New York and (iii) for any conversion of one Foreign
Currency into Dollars or another Foreign Currency, the spot rate at noon local
time in the relevant market at which, in accordance with normal banking
procedures, the Dollars or Foreign Currency into which conversion is being made
could be purchased with the Foreign Currency from which conversion is being made
from major banks located in either New York City, London or any other principal
market for Dollars or such purchased Foreign Currency, in each case determined
by the Exchange Rate Agent. Unless otherwise specified with respect to any
Securities pursuant to Section 301, in the event of the unavailability of any of
the exchange rates provided for in the foregoing clauses (i), (ii) and (iii),
the Exchange Rate Agent shall use, in its sole discretion and without liability
on its part, such quotation of the Federal Reserve Bank of New York as of the
most recent available date, or quotations from one or more major banks in New
York City, London or other principal market for such currency or currency unit
in question, or such other quotations as the Exchange Rate Agent shall deem
appropriate. Unless otherwise specified by the Exchange Rate Agent, if there is
more than one market for dealing in any Currency or Currency unit by reason of
foreign exchange regulations or otherwise, the market to be used in respect of
such currency or currency unit shall be that upon which a nonresident issuer of
securities designated in such Currency or Currency unit would purchase such
Currency or Currency unit in order to make payments in respect of such
securities. 

5 

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

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

     “Officers’ Certificate” means a written certificate signed in the name of the
Company by any two Officers, and delivered to the Trustee. 

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

     “Original Issue Discount
Security” means any Security which provides
for an amount less than the principal amount due and payable upon a declaration
of acceleration of the Maturity thereof pursuant to Section 502. 

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

     (i)
Securities cancelled by the Trustee or delivered to the Trustee for cancellation
pursuant to the terms of this Indenture; 

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

     (iii) Securities, except to the extent
provided in Sections 1402 and 1403, with respect to which the Company has
effected defeasance and/or covenant defeasance as provided in Article Fourteen;
and 

     (iv) Securities which have been paid
pursuant to Section 306, or Securities which have been exchanged for other
Securities which have been authenticated and delivered pursuant to this
Indenture, other than any such Securities in respect of which there shall have
been presented to the Trustee proof satisfactory to it that such Securities are
held by a protected purchaser (as defined in the Uniform Commercial Code) in
whose hands such Securities are valid obligations of the
Company;  

6 

provided,
however,
that in determining whether the Holders of the requisite principal amount of the
Outstanding Securities have given any request, demand, authorization, direction,
notice, consent or waiver hereunder or are present at a meeting of
Holders for quorum purposes, and for the purpose of making the calculations
required by TIA Section 313, (i) the principal amount of an Original Issue
Discount Security that may be counted in making such determination or
calculation and that shall be deemed to be Outstanding for such purpose shall be
equal to the amount of principal thereof that would be (or shall have been
declared to be) due and payable, at the time of such determination, upon a
declaration of acceleration of the Maturity thereof pursuant to Section 502,
(ii) the principal amount of any Security denominated in a Foreign Currency that
may be counted in making such determination or calculation and that shall be
deemed Outstanding for such purpose shall be equal to the Dollar equivalent,
determined as of the date such Security is originally issued by the Company as
set forth in an Exchange Rate Officers’ Certificate delivered to the Trustee, of
the principal amount (or, in the case of an Original Issue Discount Security or
Indexed Security, the Dollar equivalent as of such date of original issuance of
the amount determined as provided in clause (i) above or (iii) below,
respectively) of such Security, (iii) the principal amount of any Indexed
Security that may be counted in making such determination or calculation and
that shall be deemed outstanding for such purpose shall be equal to the
principal face amount of such Indexed Security at original issuance, unless
otherwise provided with respect to such Security pursuant to Section 301, and
(iv) Securities owned by the Company, or any other obligor upon the Securities,
or any Affiliate of the Company or of such other obligor, shall be disregarded
and deemed not to be Outstanding, except that, in determining whether the
Trustee shall be protected in making such calculation or in relying upon
any such request, demand, authorization,
direction, notice, consent or waiver, only Securities which a Responsible
Officer of the Trustee actually knows to be so owned shall be so disregarded.
Securities so owned which have been pledged in good faith may be regarded as
Outstanding if the pledgee establishes to the satisfaction of the Trustee the
pledgee’s right so to act with respect to such Securities and that the pledgee
is not the Company or any other obligor upon the Securities or any Affiliate of
the Company or of such other obligor. 

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

     “Person” means any individual, corporation, partnership, limited liability
company, joint venture, association, joint-stock company, trust, unincorporated
organization or government or any agency or political subdivision thereof.

     “Place of Payment,” when used with respect to the Securities of any series,
means the place or places where the principal of (and premium, if any) and
interest, if any, on such Securities are payable as specified and as
contemplated by or pursuant to Sections 301 and 1002. 

     “Predecessor Security,” when used with respect to any particular Security, means
every previous Security evidencing all or a portion of the same debt as that
evidenced by such particular Security; and, for the purposes of this definition,
any Security authenticated and delivered under Section 306 in exchange for or in
lieu of a mutilated, destroyed, lost or stolen Security, or a Security to which
a mutilated, destroyed, lost or stolen coupon appertains, shall be deemed to
evidence the same debt as the mutilated, destroyed, lost or stolen Security or
the Security to which the mutilated, destroyed, lost or stolen coupon
appertains. 

7 

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

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

     “Registered Security” shall mean any Security which is registered in the Security
Register. 

     “Regular Record Date” for the interest
payable on any Interest Payment Date on the Registered Securities of any series
means the date specified for that purpose as contemplated by Section 301,
whether or not a Business Day. 

     “Repayment Date” means, when used with respect to any Security to be repaid
at the option of the Holder, the date fixed for such repayment by or pursuant to
this Indenture. 

     “Repayment Price” means, when used with respect to any Security to be repaid
at the option of the Holder, the price at which it is to be repaid by or
pursuant to this Indenture. 

     “Responsible Officer,” when used with respect to the Trustee, means any officer of
the Trustee with direct responsibility for the administration of this Indenture
and also means, with respect to a particular corporate trust matter, any other
officer to whom such matter is referred because of his knowledge of and
familiarity with the particular subject. 

     “Security” or “Securities” has the meaning stated in the recitals of this Indenture
and, more particularly, means any Security or Securities of any series
authenticated and delivered under this Indenture. 

     “Security Register” and “Security
Registrar” have the respective meanings
specified in Section 305. 

     “Senior
Indebtedness” means the principal of (and
premium, if any) and interest (including all interest accruing subsequent to the
commencement of any bankruptcy or similar proceeding, whether or not a claim for
post-petition interest is allowable as a claim in any such proceeding) on, and
all fees and other amounts payable in connection with, the following, whether
absolute or contingent, secured or unsecured, due
or to become due, outstanding on the date of this Indenture or thereafter
created, incurred or assumed: (a) indebtedness of the Company to banks,
insurance companies and other financial institutions evidenced by credit or loan
agreements, notes or other written obligations, (b) all other indebtedness of
the Company (including indebtedness of others guaranteed by the Company), which
is (i) for money borrowed or (ii) evidenced by a note, security, debenture, bond
or similar instrument, (c) obligations of the Company as lessee under leases
required to be capitalized on the balance sheet of the lessee under generally
accepted accounting principles, (d) obligations of the Company under interest
rate and currency swaps, caps, floors, collars or similar agreements or
arrangements intended to protect the Company against fluctuations in interest or
currency exchange rates, (e) all obligations of the Company issued or assumed as
the deferred purchase price of property, (f) all obligations of the Company for
the reimbursement of letters of credit to the extent such obligations are Senior
Indebtedness under clauses (a) through (c) above, and (g) renewals, extensions,
amendments, modifications, restatements and refundings of, or any indebtedness
or obligation issued in exchange for, any such indebtedness or obligation
described in clauses (a) through (f) of this paragraph; provided that Senior
Indebtedness shall not include any such indebtedness or obligation if the terms
of such indebtedness or obligation (or the terms of the instrument under which,
or pursuant to which, it is issued) expressly provide that such indebtedness is
not senior or prior in right of payment to the Securities, or expressly provide
that such indebtedness or obligation is pari passu with or junior to the
Securities. 

8 

     “Significant Subsidiary” means, as of any date of determination, a Subsidiary of the
Company that would constitute a “significant subsidiary” as such term is defined
under Rule 1-02 of Regulation S-X of the Commission as in effect on the date of
this Indenture. 

     “Subsidiary” means, with respect to any Person, (i) any corporation, association or
other business entity of which more than 50% of the total voting power of shares
of capital stock or other equity interest entitled (without regard to the
occurrence of any contingency) to vote in the election of directors, managers or
trustees thereof is at the time owned or controlled, directly or indirectly, by
such Person or one or more of the other subsidiaries of that Person (or a
combination thereof) and (ii) any partnership (a) the sole general partner or
managing general partner of which is such Person or a subsidiary of such Person
or (b) the only general partners of which are such Person or of one or more
subsidiaries of such Person (or any combination thereof). 

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

     “Stated Maturity,” when used with respect to any Security or any installment
of principal thereof or interest thereon, means the date specified in such
Security or a coupon representing such installment of interest as the fixed date
on which the principal of such Security or such installment of principal or
interest thereon is due and payable, as such date may be extended pursuant to
the provisions of Section 308. 

     “Trust Indenture Act” or “TIA” means the Trust Indenture Act of 1939 as in force at the
date as of which this Indenture was executed, except as provided in Section 905;
provided,
however,
that in the event the Trust Indenture Act is amended after such date, “Trust
Indenture Act” or “TIA” means, to the extent required by any such amendment, the
Trust Indenture Act of 1939 as so amended. 

     “Trustee” means the Person named as the “Trustee” in the first paragraph of this
Indenture until a successor replaces it pursuant to the applicable provisions of
this Indenture and, thereafter, shall mean such successor. The foregoing
sentence shall likewise apply to any subsequent such successor or successors.

     “United States” means, unless otherwise specified with respect to any
Securities pursuant to Section 301, the United States of America (including the
states and the District of Columbia), its territories, its possessions and other
areas subject to its jurisdiction. 

9 

     “United States person” means, unless otherwise specified with respect to any
Securities pursuant to Section 301, an individual who is a citizen or resident
of the United States, a corporation, partnership or other entity created or
organized in or under the laws of the United States or an estate or trust the
income of which is subject to United States federal income taxation regardless
of its source. 

     “Valuation Date” has the meaning
specified in Section 312(c). 

     “Yield to Maturity” means the yield to maturity, computed at the time of
issuance of a Security (or, if applicable, at the most recent redetermination of
interest on such Security) and as set forth in such Security in accordance with
generally accepted United States bond yield computation principles. 

     SECTION
102. Compliance Certificates and Opinions.
(a) Upon any application or request by the Company to the Trustee to take any
action under any provision of this Indenture, the Company shall furnish to the
Trustee an Officers’ Certificate stating that all conditions precedent, if any,
provided for in this Indenture relating to the proposed action have been
complied with and an Opinion of Counsel stating that in the opinion of such
counsel such action is authorized or permitted by this Indenture and that all
such conditions precedent, if any, have been complied with; and, except in the
case of any such application or request as to which the furnishing of documents
is specifically required by any provision of this Indenture relating to such
particular application or request, no additional certificate or opinion need be
furnished. 

     (b) Every
certificate or opinion with respect to compliance with a condition or covenant
provided for in this Indenture (other than pursuant to Section 1005) shall
include: 

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

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

     (3) a statement that, in the opinion
of each such individual, he has made such examination or investigation as is
necessary to enable him to express an informed opinion as to whether or not such
condition or covenant has been complied with; and 

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

     SECTION
103. Form of Documents Delivered to Trustee.
(a) In any case where several matters are required to be certified by, or
covered by an opinion of, any specified Person, it is not necessary that all
such matters be certified by, or covered by the opinion of, only one such
Person, or that they be so certified or covered by only one document, but one
such Person may certify or give an opinion as to some matters and one or more
other such Persons as to other matters, and any such Person may certify or give
an opinion as to such matters in one or several documents. 

10 

     (b) Any
certificate or opinion of an officer of the Company may be based, insofar as it
relates to legal matters, upon an Opinion of Counsel, or a certificate or
representations by counsel. Any such Opinion of Counsel or certificate or
representations may be based, insofar as it relates to factual matters, upon a
certificate or opinion of, or representations by, an officer or officers of the
Company stating that the information as to such factual matters is in the
possession of the Company. 

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

     SECTION
104. Acts of Holders. (a) Any request,
demand, authorization, direction, notice, consent, waiver or other action
provided by this Indenture to be given or taken by Holders of the Outstanding
Securities of all series or one or more series, as the case may be, may be
embodied in and evidenced by one or more instruments of substantially similar
tenor signed by such Holders in person or by agents duly appointed in writing. If Securities of a series are issuable as Bearer
Securities, any request, demand, authorization, direction, notice, consent,
waiver or other action provided by this Indenture to be given or taken by
Holders of Securities of such series may, alternatively, be embodied in and
evidenced by the record of Holders of Securities of such series voting in favor
thereof, either in person or by proxies duly appointed in writing, at any
meeting of Holders of Securities of such series duly called and held in
accordance with the provisions of Article Fifteen, or a combination of such
instruments and any such record. Except as herein otherwise expressly provided,
such action shall become effective when such instrument or instruments or record
or both are delivered to the Trustee and, where it is hereby expressly required,
to the Company. Such instrument or instruments and any such record (and the
action embodied therein and evidenced thereby) are herein sometimes referred to
as the “Act” of the Holders signing such instrument or instruments or so voting at
any such meeting. Proof of execution of any such instrument or of a writing
appointing any such agent, or of the holding by any Person of a Security, shall
be sufficient for any purpose of this Indenture and conclusive in favor of the
Trustee and the Company and any agent of the Trustee or the Company, if made in
the manner provided in this Section. The record of any meeting of Holders of
Securities shall be proved in the manner provided in Section 1506. 

     (b) The fact
and date of the execution of any such instrument or writing, or the authority of
the Person executing the same, may be proved in any manner that the Trustee
deems reasonably sufficient. 

     (c) The ownership of Registered
Securities shall be proved by the Security Register. 

     (d) The
ownership of Bearer Securities may be proved by the production of such Bearer
Securities or by a certificate executed, as depositary, by any trust company,
bank, banker or other depositary, wherever situated, if such certificate shall
be deemed by the Trustee to be satisfactory, showing that at the date therein
mentioned such Person had on deposit with such depositary, or exhibited to it,
the Bearer Securities therein described; or such facts may be proved by the
certificate or affidavit of the Person holding such Bearer Securities, if such
certificate or affidavit is deemed by the Trustee to be satisfactory. The
Trustee and the Company may assume that such ownership of any Bearer Security
continues until (1) another certificate or affidavit bearing a later date issued
in respect of the same Bearer Security is produced, or (2) such Bearer Security
is produced to the Trustee by some other Person, or (3) such Bearer Security is
surrendered in exchange for a Registered Security, or (4) such Bearer Security
is no longer Outstanding. The ownership of Bearer Securities may also be proved
in any other manner that the Trustee deems sufficient.

11 

      (e) If
the Company shall solicit from the Holders of Registered Securities any request,
demand, authorization, direction, notice, consent, waiver or other Act, the
Company may, at its option, in or pursuant to a Board Resolution, fix in advance
a record date for the determination of Holders entitled to give such request,
demand, authorization, direction, notice, consent, waiver or other Act, but the
Company shall have no obligation to do so. Notwithstanding TIA Section 316(c),
such record date shall be the record date specified in or pursuant to such Board
Resolution, which shall be a date not earlier than the date 30 days prior to the
first solicitation of Holders generally in connection therewith and not later
than the date such solicitation is completed. If such a record date is fixed,
such request, demand, authorization, direction, notice, consent, waiver or other
Act may be given before or after such record date, but only the Holders of
record at the close of business on such record date shall be deemed to be
Holders for the purposes of determining whether Holders of the requisite
proportion of Outstanding Securities have authorized or agreed or consented to
such request, demand, authorization, direction, notice, consent, waiver or other
Act, and for that purpose the Outstanding Securities shall be computed as of
such record date; provided that no such authorization, agreement or consent by the
Holders on such record date shall be deemed effective unless it shall become
effective pursuant to the provisions of this Indenture not later than eleven
months after the record date. 

     (f) Any
request, demand, authorization, direction, notice, consent, waiver or other Act
of the Holder of any Security shall bind every future Holder of the same
Security and the Holder of every Security issued upon the registration of
transfer thereof or in exchange therefore or in lieu thereof in respect of
anything done, omitted or suffered to be done by
the Trustee, any Security Registrar, any Paying Agent, any Authenticating Agent
or the Company in reliance thereon, whether or not notation of such action is
made upon such Security. 

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

     (1) the Trustee by any Holder or by
the Company shall be sufficient for every purpose hereunder if made, given,
furnished or filed in writing to or with the Trustee at its Corporate Trust
Office; or 

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

12 

     SECTION
106. Notice to Holders; Waiver. (a) Where
this Indenture provides for notice of any event to Holders of Registered
Securities by the Company or the Trustee, such notice shall be sufficiently
given (unless otherwise herein expressly provided) if in writing and mailed,
first-class postage prepaid, to each such Holder affected by such event, at his
address as it appears in the Security Register, not later than the latest date,
and not earlier than the earliest date, prescribed for the giving of such
notice. In any case where notice to Holders of Registered Securities is given by
mail, neither the failure to mail such notice, nor any defect in any notice so
mailed, to any particular Holder shall affect the sufficiency of such notice
with respect to other Holders of Registered Securities or the sufficiency of any
notice to Holders of Bearer Securities given as provided herein. Any notice
mailed to a Holder in the manner herein prescribed shall be conclusively deemed
to have been received by such Holder, whether or not such Holder actually
receives such notice. 

     (b) If by
reason of the suspension of or irregularities in regular mail service or by
reason of any other cause it shall be impracticable to give such notice by mail,
then such notification to Holders of Registered Securities as shall be made in a
manner approved by the Trustee shall constitute a sufficient notification to
such Holders for every purpose hereunder. 

     (c) Except
as otherwise expressly provided herein or otherwise specified with respect to
any Securities pursuant to Section 301, where this Indenture provides for notice
to Holders of Bearer Securities of any event, such notice shall be sufficiently
given if published in an Authorized Newspaper in The City of New York and in
such other city or cities as may be specified in such Securities on a Business
Day, such publication to be not later than the latest date, and not earlier than
the earliest date, prescribed for the giving of such notice. Any such notice
shall be deemed to have been given on the date of such publication or, if
published more than once, on the date of the first such publication.

     (d) If by
reason of the suspension of publication of any Authorized Newspaper or
Authorized Newspapers or by reason of any other cause it shall be impracticable
to publish any notice to Holders of Bearer Securities as provided above, then
such notification to Holders of Bearer Securities as shall be given in a manner
approved by of the Trustee, which notice shall constitute sufficient notice to
such Holders for every purpose hereunder. Neither the failure to give notice by
publication to Holders of Bearer Securities as provided above, nor any defect in
any notice so published, shall affect the sufficiency of such notice with
respect to other Holders of Bearer Securities or the sufficiency of any notice
to Holders of Registered Securities given as provided herein. 

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

     (f) 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 deemed the equivalent of notice given.
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. 

13 

     SECTION
107. Effect of Headings and Table of Contents. The Article and Section headings herein and the Table of Contents are
for convenience only and shall not affect the construction hereof. 

     SECTION
108. Successors and Assigns. All covenants
and agreements in this Indenture by the Company shall bind its successors and
assigns, whether so expressed or not. 

     SECTION
109. Separability Clause. In case any
provision in this Indenture or in any Security or coupon 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
110. Benefits of Indenture. Nothing in this
Indenture or in the Securities or coupons, express or implied, shall give to any
Person (including any Security Registrar, any Paying Agent, any Authenticating
Agent and their successors hereunder), other than the parties hereto, any
benefit or any legal or equitable right, remedy or claim under this Indenture.

     SECTION
111. Governing Law. This Indenture and the
Securities and coupons shall be governed by and construed in accordance with the
law of the State of New York, without regard to principles of conflicts of laws.
This Indenture is subject to the provisions of the Trust Indenture Act that are
required to be part of this Indenture and shall, to the extent applicable, be
governed by such provisions. 

     SECTION
112. Legal Holidays. In any case where any
Interest Payment Date, Redemption Date, Repayment Date, sinking fund payment
date, Stated Maturity or Maturity of any Security shall not be a Business Day at
any Place of Payment, then (notwithstanding any other provision of this
Indenture or any Security or coupon, other than a provision in the Securities of
any series established pursuant to Section 301 hereof which specifically states
that such provision shall apply in lieu of this Section), payment of principal
(or premium, if any) or interest, if any, need not be made at such Place of
Payment on such date, but may be made on the next succeeding Business Day at
such Place of Payment with the same force and effect as if made on the Interest
Payment Date, Redemption Date, Repayment Date or sinking fund payment date, or
at the Stated Maturity or Maturity; provided that no interest shall accrue
on the amount so paid for the period from and after such Interest Payment Date,
Redemption Date, Repayment Date, sinking fund payment date, Stated Maturity or
Maturity, as the case may be. 

ARTICLE TWO 
SECURITIES FORMS 

     SECTION
201. Forms of Securities. The Registered
Securities, if any, of each series and the Bearer Securities, if any, of each
series and the related coupons shall be in substantially the forms as shall be
established in one or more indentures supplemental hereto or approved from time
to time by or pursuant to a Board Resolution in accordance with Section 301,
shall have such appropriate insertions, omissions, substitutions and other
variations as are required or permitted by this Indenture or any indenture
supplemental hereto, and may have such letters, numbers or other marks of
identification or designation and such legends or endorsements placed thereon as
the Company may deem appropriate and as are not inconsistent with the provisions
of this Indenture, or as may be required to comply with any law or with any rule
or regulation made pursuant thereto or with any rule or regulation of any stock
exchange on which the Securities may be listed, or to conform to usage.

14 

     Unless
otherwise specified as contemplated by Section 301, Bearer Securities shall have
interest coupons attached. 

     The
definitive Securities and coupons shall be printed, lithographed or engraved or
produced by any combination of these methods on a steel engraved border or steel
engraved borders, or may be produced in any other manner, all as determined by
the Officers executing such Securities or coupons, as evidenced by their
execution of such Securities or coupons. 

     Any form of
Security approved by or pursuant to a Board Resolution must be acceptable as to
form to the Trustee, such acceptance to be evidenced by the Trustee’s
authentication of Securities in that form or a certificate signed by a
Responsible Officer of the Trustee and delivered to the Company. 

     SECTION
202. Form of Trustee’s Certificate of Authentication. Subject to Section 615, the Trustee’s certificate of authentication
shall be in substantially the following form: 

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

	THE
      BANK OF NEW YORK MELLON,  
	     as
      Trustee  
	   
	By 	 
	     Authorized Officer 

     SECTION
203. Securities Issuable in Global Form. If
Securities of a series are issuable in global form, as specified and
contemplated by Section 301, then, notwithstanding clause (8) of Section 301 and
the provisions of Section 302, any such Security in global form shall represent
the Outstanding Securities of such series as shall be specified in such
Security, and may provide that it shall represent the aggregate amount of
Outstanding Securities of such series from time to time endorsed thereon, and
that the aggregate amount of Outstanding Securities of such series represented
by such Security in global form may from time to time be increased or decreased
to reflect exchanges. Any endorsement of a Security in global form to reflect
the amount, or any increase or decrease in the amount, of Outstanding Securities
represented thereby shall be made by the Trustee in such manner and upon
instructions given by such Person or Persons as shall be specified therein or in
the Company Order to be delivered to the Trustee pursuant to Section 303 or 304.
Subject to the provisions of Section 303 and, if applicable, Section 304, the
Trustee shall deliver and redeliver any Security in permanent global form in the
manner and upon instructions given by the Person or Persons specified therein or
in the applicable Company Order. If a Company Order pursuant to Section 303 or
304 has been, or simultaneously is, delivered, any instructions by the Company
with respect to endorsement, delivery or redelivery of a Security in global form
shall be in writing but need not comply with Section 102 and need not be
accompanied by an Opinion of Counsel. 

15 

     The
provisions of the last sentence of Section 303 shall apply to any Security
represented by a Security in global form if such Security was never issued and
sold by the Company and the Company delivers to the Trustee the Security in
global form together with written instructions (which need not comply with
Section 102 and need not be accompanied by an Opinion of Counsel) with regard to
the reduction in the principal amount of Securities represented thereby,
together with the written statement contemplated by the last sentence of Section
303. 

     Notwithstanding the provisions of Section 307, unless otherwise specified
as contemplated by Section 301, payment of principal of (and premium, if any)
and interest, if any, on any Security in permanent global form shall be made to
the Person or Persons specified in such Security in global form. 

     Notwithstanding the provisions of Section 309 and except as provided in
the preceding paragraph, the Company, the Trustee and any agent of the Company
and the Trustee shall treat as the Holder of such principal amount of Outstanding Securities represented by a permanent
global Security (i) in the case of a permanent global Security in registered
form, the Person in whose name such Security is registered in the Security
Register, or (ii) in the case of a permanent global Security in bearer form,
Euroclear or Clearstream. 

ARTICLE THREE 
THE SECURITIES 

     SECTION 301. Amount
Unlimited; Issuable in Series. The
aggregate principal amount of Securities which
may be authenticated and delivered under this Indenture is unlimited. All
Securities of any one series need not be issued at the same time and, unless
otherwise provided, a series may be reopened, without the consent of the
Holders, for issuances of additional Securities of such series. 

     There shall
be established in one or more Board Resolutions or pursuant to authority granted
by one or more Board Resolutions and, subject to Section 303, set forth, or
determined in the manner provided, in an Officers’ Certificate, or established
in one or more indentures supplemental hereto, prior to the issuance of
Securities of any series, any or all of the following, as applicable (each of
which (except for the matters set forth in clauses (1), (2) and (15) below), if
so provided, may be determined from time to time by the Company with respect to
unissued Securities of the series when issued from time to time): 

     (1) the form
and title of the Securities of the series (which shall distinguish the
Securities of such series from all other series of Securities) and whether such
Securities are senior or subordinated; 

16 

     (2) any limit upon the aggregate principal amount of the
Securities of the series that may be authenticated and delivered under this
Indenture (except for Securities authenticated and delivered upon registration
of transfer of, or in exchange for, or in lieu of, other Securities of the
series pursuant to Section 304, 305, 306, 906, 1107 or 1305); 

     (3) the date
or dates, or the method by which such date or dates will be determined or
extended, on which the principal of the Securities of the series shall be
payable; 

     (4) the rate or rates at which the
Securities of the series shall bear interest, if any, or the method by which
such rate or rates shall be determined, the date or dates from which such
interest shall accrue or the method by which such date or dates shall be
determined, the Interest Payment Dates on which such interest will be payable
and the Regular Record Date, if any, for the interest payable on any Registered
Security on any Interest Payment Date, or the method by which such date shall be
determined, and the basis upon which such interest shall be calculated if other
than that of a 360-day year of twelve 30-day months; 

     (5) the period or periods within
which, the price or prices at which, the Currency or Currencies in which, and
other terms and conditions upon which Securities, of the series may be redeemed,
in whole or in part, at the option of the Company, if the Company is to have the
option; 

     (6) the obligation, if any, of the
Company to redeem, repay or purchase Securities of the series pursuant to any
sinking fund or analogous provision or at the option of a Holder thereof, and
the period or periods within which or the date or dates on which, the price or
prices at which, the Currency or Currencies in which, and other terms and
conditions upon which, Securities of the series shall be redeemed, repaid or
purchased, in whole or in part, pursuant to such obligation; 

     (7) if other than denominations of
$1,000 and any integral multiple thereof, the denomination or denominations in
which any Registered Securities of the series shall be issuable and, if other
than denominations of $5,000, the denomination or denominations in which any
Bearer Securities of the series shall be issuable; 

     (8) any deletions from, modifications
of or additions to the defeasance and covenant defeasance provisions set forth
in Article Fourteen with respect to Securities of the series; 

     (9) if other than the Trustee, the identity of each Security
Registrar and/or Paying Agent; 

     (10) if
other than the principal amount thereof, the portion of the principal amount of
Securities of the series that shall be payable upon declaration of acceleration
of the Maturity thereof pursuant to Section 502 or the method by which such
portion shall be determined; 

17 

     (11) if other than Dollar, the Currency or Currencies in which
payment of the principal of (or premium, if any) or interest, if any, on the
Securities of the series shall be made or in which the Securities of the series
shall be denominated and the particular provisions applicable thereto in
accordance with, in addition to or in lieu of any of the provisions of Section
312; 

     (12) whether the amount of payments of principal of (or
premium, if any) or interest, if any, on the Securities of the series may be
determined with reference to an index, formula or other method (which index,
formula or method may be based, without limitation, on one or more Currencies,
commodities, equity indices or other indices), and the manner in which such
amounts shall be determined; 

     (13) whether the principal of (or premium, if any) or
interest, if any, on the Securities of the series are to be payable, at the
election of the Company or a Holder thereof, in one or more Currencies, other
than that in which such Securities are denominated or stated to be payable, the
period or periods within which (including the Election Date), and the terms and
conditions upon which, such election may be made, and the time and manner of
determining the exchange rate between the Currency or Currencies in which such
Securities are denominated or stated to be payable and the Currency or
Currencies in which such Securities are to be paid, in each case in accordance
with, in addition to or in lieu of any of the provisions of Section 312;

     (14) provisions, if any, granting special rights to the
Holders of Securities of the series upon the occurrence of such events as may be
specified; 

     (15) any deletions from, modifications of or additions to the
Events of Default or covenants (including any deletions from, modifications of
or additions to any of the provisions of Section 1006) of the Company with
respect to Securities of the series, whether or not such Events of Default or
covenants are consistent with the Events of Default or covenants set forth
herein; 

     (16) whether Securities of the series are to be issuable as
Registered Securities, Bearer Securities (with or without coupons) or both, any
restrictions applicable to the offer, sale or delivery of Bearer Securities and
the terms upon which Bearer Securities of the series may be exchanged for
Registered Securities of the series and vice versa (if permitted by applicable
laws and regulations), whether any Securities of the series are to be issuable
initially in temporary global form and whether any Securities of the series are
to be issuable in permanent global form with or without coupons and, if so,
whether beneficial owners of interests in any such permanent global Security may
exchange such interests for Securities of such series in certificated form and
of like tenor of any authorized form and denomination and the circumstances
under which any such exchanges may occur, if other than in the manner provided
in Section 305, and, if Registered Securities of the series are to be issuable
as a global Security, the identity of the depository for such series;

18 

     (17) the date as of which any Bearer Securities of the series
and any temporary global Security representing Outstanding Securities of the
series shall be dated if other than the date of original issuance of the first
Security of the series to be issued; 

     (18) the Person to whom any interest on any Registered
Security of the series shall be payable, if other than the Person in whose name
such Security (or one or more Predecessor Securities) is registered at the close
of business on the Regular Record Date for such interest, the manner in which,
or the Person to whom, any interest on any Bearer Security of the series shall
be payable, if otherwise than upon presentation
and surrender of the coupons appertaining thereto as they severally mature, and
the extent to which, or the manner in which, any interest payable on a temporary
global Security on an Interest Payment Date will be paid if other than in the
manner provided in Section 304; 

     (19) the applicability, if any, of Sections 1402 and/or 1403
to the Securities of the series and any provisions in modification of, in
addition to or in lieu of any of the provisions of Article Fourteen; 

     (20) the applicability, if any, of Article Sixteen to the
Securities of the series and any provisions in modification of, in addition to
or in lieu of any of the provisions of Article Sixteen; 

     (21) if the Securities of such 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, then the form and/or terms of
such certificates, documents or conditions; 

     (22) whether, under what circumstances and the Currency in
which, the Company will pay Additional Amounts as contemplated by Section 1011
on the Securities of the series to any Holder who is not a United States person
(including any modification to the definition of such term) in respect of any
tax, assessment or governmental charge and, if so, whether the Company will have
the option to redeem such Securities rather than pay such Additional Amounts
(and the terms of any such option); 

     (23) the designation of the initial Exchange Rate Agent, if
any; 

     (24) if the Securities of the series are to be convertible
into or exchangeable for any securities of any Person (including the Company),
the terms and conditions upon which such Securities will be so convertible or
exchangeable; 

     (25) the place or places, if any, other than or in addition to
the Borough of Manhattan, The City of New York, where the principal of (and
premium, if any) and interest, if any, on Securities of the series shall be
payable, any Registered Securities of the series may be surrendered for
registration of transfer, Securities of the series may be surrendered for
exchange, where Securities of that series that are convertible or exchangeable
may be surrendered for conversion or exchange, as applicable, and where notices
or demands to or upon the Company in respect of the Securities of the series and
this Indenture may be served; and 

19 

     (26) any other terms of the series
(which terms shall not be inconsistent with the provisions of this Indenture or
the requirements of the Trust Indenture Act); 

     All
Securities of any one series and the coupons appertaining to any Bearer
Securities of such series shall be substantially identical except, in the case
of Registered Securities, as to denomination and except as may otherwise be
provided in or pursuant to such Board Resolution (subject to Section 303) and
set forth in such Officers’ Certificate or in any such indenture supplemental
hereto. 

     SECTION
302. Denominations. The Securities of each
series shall be issuable in such denominations as shall be specified as
contemplated by or pursuant to Section 301. With respect to Securities of any
series denominated in Dollars, in the absence of any such provisions with
respect to the Securities of any series, the Registered Securities of such
series, other than Registered Securities issued in global form (which may be of
any denomination) shall be issuable in denominations of $1,000 and any integral
multiple thereof, and the Bearer Securities of such series, other than Bearer
Securities issued in global form (which may be of any denomination), shall be
issuable in a denomination of $5,000. 

     SECTION
303. Execution, Authentication, Delivery and Dating. The Securities and any
coupons appertaining thereto shall be executed on behalf of the Company by any
Officer. The signature of any Officer on the Securities and coupons may be
manual or facsimile signatures of the present or any future such authorized
Officer and may be imprinted or otherwise reproduced on the Securities.

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

     At any time
and from time to time after the execution and delivery of this Indenture, the
Company may deliver Securities of any series, together with any coupon
appertaining thereto, executed by the Company, to the Trustee for
authentication, together with a Company Order for the authentication and
delivery of such Securities, and the Trustee in accordance with the Company
Order shall authenticate and deliver such Securities; provided, however, that, in connection with its
original issuance, no Bearer Security shall be mailed or otherwise delivered to
any location in the United States; and provided further that, unless otherwise
specified with respect to any series of Securities pursuant to Section 301, a
Bearer Security may be delivered in connection with its original issuance only
if the Person entitled to receive such Bearer Security shall have furnished a
certificate in the form set forth in Exhibit A-1 to this Indenture or such other
certificate as may be specified with respect to any series of Securities
pursuant to Section 301, dated no earlier than 15 days prior to the earlier of
the date on which such Bearer Security is delivered and the date on which any
temporary Security first becomes exchangeable for such Bearer Security in
accordance with the terms of such temporary Security and this Indenture. If any
Security shall be represented by a permanent global Bearer Security, then, for
purposes of this Section and Section 304, the notation of a beneficial owner’s
interest therein upon original issuance of such Security or upon exchange of a
portion of a temporary global Security shall be deemed
to be delivery in connection with its original issuance of such beneficial
owner’s interest in such permanent global Security. Except as permitted by
Section 306, the Trustee shall not authenticate and deliver any Bearer Security
unless all appurtenant coupons for interest then matured have been detached and
cancelled. If all the Securities of any series are not to be issued at one time
and if the Board Resolution or supplemental indenture establishing such series
shall so permit, such Company Order may set forth procedures acceptable to the
Trustee for the issuance of such Securities and determining the terms of
particular Securities of such series, such as interest rate, maturity date, date
of issuance and date from which interest shall accrue. In authenticating such
Securities, and accepting the additional responsibilities under this Indenture
in relation to such Securities, the Trustee shall be entitled to receive, and
(subject to TIA Section 315(a) through 315(d)) shall be fully protected in
relying upon: 

     (i) an Opinion of Counsel stating: 

     (a) that the form
or forms of such Securities and any coupons have been established in conformity
with the provisions of this Indenture; 

     (b) that the terms of such Securities
and any coupons have been established in conformity with the provisions of this
Indenture; and 

     (c) that such Securities, together with any coupons
appertaining thereto, when completed by appropriate insertions and executed and
delivered by the Company to the Trustee for authentication in accordance with
this Indenture, authenticated and delivered by the Trustee in accordance with
this Indenture and issued by the Company in the manner and subject to any
conditions specified in such Opinion of Counsel, will constitute legal, valid
and binding obligations of the Company, enforceable in accordance with their
terms, subject to applicable bankruptcy, insolvency, reorganization and other
similar laws of general applicability relating to or affecting the enforcement
of creditors’ rights, to general equitable principles and to such other
qualifications as such counsel shall conclude do not materially affect the
rights of Holders of such Securities and any coupons; and 

20 

     (ii) an Officers’ Certificate stating, to the best of the
knowledge of the signers of such certificate, that no Event of Default with
respect to any of the Securities shall have occurred and be continuing.

     Notwithstanding the provisions of Section 301 and of this Section 303, if
all the Securities of any series are not to be issued at one time, it shall not
be necessary to deliver an Officers’ Certificate otherwise required pursuant to
Section 301 or the Company Order, Opinion of Counsel or Officers’ Certificate
otherwise required pursuant to the preceding paragraph at the time of issuance
of each Security of such series, but such order, opinion and certificates, with
appropriate modifications to cover such future issuances, shall be delivered at
or before the time of issuance of the first Security of such series. 

     Notwithstanding the generality of the foregoing, the Trustee will not be
required to authenticate Securities denominated in a Foreign Currency if the
Trustee reasonably believes that it would be unable to perform its duties with
respect to such Securities. 

     Each
Registered Security shall be dated the date of its authentication and each
Bearer Security shall be dated as of the date specified as contemplated by
Section 301. 

     No Security
or coupon shall be entitled to any benefit under this Indenture or be valid or
obligatory for any purpose unless there appears on such Security or Security to
which such coupon appertains a certificate of authentication substantially in
the form provided for herein duly executed by the Trustee by manual signature of
an authorized signatory, and such certificate upon any Security shall be
conclusive evidence, and the only evidence, that such Security has been duly
authenticated and delivered hereunder and is entitled to the benefits of this
Indenture. Notwithstanding the foregoing, if any Security shall have been
authenticated and delivered hereunder but never issued and sold by the Company,
and the Company shall deliver such Security to the Trustee for cancellation as
provided in Section 310 together with a written statement (which need not comply
with Section 102 and need not be accompanied by an Opinion of Counsel) stating
that such Security has never been issued and sold by the Company, for all
purposes of this Indenture such Security shall be deemed never to have been
authenticated and delivered hereunder and shall never be entitled to the
benefits of this Indenture. 

     SECTION
304. Temporary Securities. (a) Pending the
preparation of definitive Securities of any series, the Company may execute, and
upon Company Order the Trustee shall authenticate and deliver, temporary
Securities which are printed, lithographed, typewritten, mimeographed or
otherwise produced, in any authorized denomination, substantially of the tenor
of the definitive Securities in lieu of which they are issued, in registered
form, or, if authorized, in bearer form with one or more coupons or without
coupons, and with such appropriate insertions, omissions, substitutions and
other variations as the officers executing such Securities may determine, as
conclusively evidenced by their execution of such Securities. In the case of
Securities of any series, such temporary Securities may be in global form.

     Except in
the case of temporary Securities in global form (which shall be exchanged in
accordance with Section 304(b) or as otherwise provided in or pursuant to a
Board Resolution), if temporary Securities of any series are issued, the Company
will cause definitive Securities of that series to be prepared without
unreasonable delay. After the preparation of definitive Securities of such
series, the temporary Securities of such series shall be exchangeable for
definitive Securities of such series upon surrender of the temporary Securities
of such series at the office or agency of the Company in a Place of Payment for
that series, without charge to the Holder. Upon surrender for cancellation of
any one or more temporary Securities of any series (accompanied by any
non-matured coupons appertaining thereto), the Company shall execute and the
Trustee shall authenticate and deliver in exchange therefore a like principal
amount of definitive Securities of the same series of authorized denominations;
provided, however, that no definitive Bearer Security shall be
delivered in exchange for a temporary Registered Security; and provided
further that a definitive Bearer Security shall be delivered in exchange
for a temporary Bearer Security only in compliance with the conditions set forth
in Section 303. Until so exchanged, the temporary Securities of any series shall
in all respects be entitled to the same benefits under this Indenture as
definitive Securities of such series. 

21 

     (b) Unless
otherwise provided in or pursuant to a Board Resolution, this Section 304(b)
shall govern the exchange of temporary Securities issued in global form. If
temporary Securities of any series are issued in global form, any such temporary
global Security shall, unless otherwise provided therein, be delivered to the
London office of a depositary or common depositary (the “Common Depositary”), for
the benefit of Euroclear and Clearstream, for credit to the respective accounts
of the beneficial owners of such Securities (or to such other accounts as they
may direct). 

     Without
unnecessary delay but in any event not later than the date specified in, or
determined pursuant to the terms of, any such temporary global Security (the
“Exchange Date”), the Company shall deliver to the Trustee definitive
Securities, in aggregate principal amount equal to the principal amount of such
temporary global Security, executed by the Company. On or after the Exchange
Date, such temporary global Security shall be surrendered by the Common
Depositary to the Trustee, as the Company’s agent for such purpose, to be
exchanged, in whole or from time to time in part, for definitive Securities
without charge, and the Trustee shall authenticate and deliver, in exchange for
each portion of such temporary global Security, an equal aggregate principal
amount of definitive Securities of the same series of authorized denominations
and of like tenor as the portion of such temporary global Security to be
exchanged. The definitive Securities to be delivered in exchange for any such
temporary global Security shall be in bearer form, registered form, permanent
global bearer form or permanent global registered form, or any combination
thereof, as specified as contemplated by Section 301, and, if any combination
thereof is so specified, as requested by the beneficial owner thereof;
provided,
however,
that, unless otherwise specified in such temporary global Security, upon such
presentation by the Common Depositary, such temporary global Security is
accompanied by a certificate dated the Exchange Date or a subsequent date and
signed by Euroclear as to the portion of such temporary global Security held for
its account then to be exchanged and a certificate dated the Exchange Date or a
subsequent date and signed by Clearstream as to the portion of such temporary
global Security held for its account then to be exchanged, each in the form set
forth in Exhibit A-2 to this Indenture or in such other form as may be
established pursuant to Section 301; and provided further that definitive Bearer
Securities shall be delivered in exchange for a portion of a temporary global
Security only in compliance with the requirements of Section 303. 

     Unless
otherwise specified in such temporary global Security, the interest of a
beneficial owner of Securities of a series in a temporary global Security shall
be exchanged for definitive Securities of the same series and of like tenor
following the Exchange Date when the account holder instructs Euroclear or
Clearstream, as the case may be, to request such exchange on his behalf and
delivers to Euroclear or Clearstream, as the case may be, a certificate in the
form set forth in Exhibit A-1 to this Indenture (or in such other form as may be
established pursuant to Section 301), dated no earlier than 15 days prior to the
Exchange Date, copies of which certificate shall be available from the offices
of Euroclear and Clearstream, the Trustee, any Authenticating Agent appointed
for such series of Securities and each Paying Agent. Unless otherwise specified
in such temporary global Security, any such exchange shall be made free of
charge to the beneficial owners of such temporary global Security, except that a
Person receiving definitive Securities must bear the cost of insurance, postage,
transportation and the like unless such Person takes delivery of such definitive
Securities in person at the offices of Euroclear or Clearstream. Definitive Securities in bearer form to be delivered in
exchange for any portion of a temporary global Security shall be delivered only
outside the United States. 

22 

     Until
exchanged in full as hereinabove provided, the temporary Securities of any
series shall in all respects be entitled to the same benefits under this
Indenture as definitive Securities of the same series and of like tenor
authenticated and delivered hereunder, except that, unless otherwise specified
as contemplated by Section 301, interest payable on a temporary global Security
on an Interest Payment Date for Securities of such series occurring prior to the
applicable Exchange Date shall be payable to Euroclear and Clearstream on such
Interest Payment Date upon delivery by Euroclear and Clearstream to the Trustee
of a certificate or certificates in the form set forth in Exhibit A-2 to this
Indenture (or in such other forms as may be established pursuant to Section
301), for credit without further interest on or after such Interest Payment Date
to the respective accounts of Persons who are the beneficial owners of such
temporary global Security on such Interest Payment Date and who have each
delivered to Euroclear or Clearstream, as the case may be, a certificate dated
no earlier than 15 days prior to the Interest Payment Date occurring prior to
such Exchange Date in the form set forth as Exhibit A-1 to this Indenture (or in
such other forms as may be established pursuant to Section 301). Notwithstanding
anything to the contrary herein contained, the certifications made pursuant to
this paragraph shall satisfy the certification requirements of the preceding two
paragraphs of this Section 304(b) and of the third paragraph of Section 303 of
this Indenture and the interests of the Persons who are the beneficial owners of
the temporary global Security with respect to which such certification was made
will be exchanged for definitive Securities of the same series and of like tenor
on the Exchange Date or the date of certification if such date occurs after the
Exchange Date, without further act or deed by such beneficial owners. Except as
otherwise provided in this paragraph, no payments of principal (or premium, if
any) or interest, if any, owing with respect to a beneficial interest in a
temporary global Security will be made unless and until such interest in such
temporary global Security shall have been exchanged for an interest in a
definitive Security. Any interest so received by Euroclear and Clearstream and
not paid as herein provided shall be returned to the Trustee prior to the
expiration of two years after such Interest Payment Date in order to be repaid
to the Company. 

     SECTION
305. Registration, Registration of Transfer and Exchange. The Company shall cause to be kept at the Corporate Trust
Office of the Trustee or in any office or agency of the Company in a Place of
Payment a register for each series of Securities (the registers maintained in
such office or in any such office or agency of the Company in a Place of Payment
being herein sometimes referred to collectively as the “Security Register”) in
which, subject to such reasonable regulations as it may prescribe, the Company
shall provide for the registration of Registered Securities and of transfers of
Registered Securities. The Security Register shall be in written form or any
other form capable of being converted into written form within a reasonable
time. The Trustee, at its Corporate Trust Office, is hereby initially appointed
“Security
Registrar”
for the purpose of registering Registered Securities and transfers of Registered
Securities on such Security Register as herein provided. In the event that the
Trustee shall cease to be Security Registrar, it shall have the right to examine
the Security Register at all reasonable times. 

     Upon
surrender for registration of transfer of any Registered Security of any series
at any office or agency of the Company in a Place of Payment for that series,
the Company shall execute, and the Trustee shall
authenticate and deliver, in the name of the designated transferee or
transferees, one or more new Registered Securities of the same series, of any
authorized denominations and of a like aggregate principal amount, bearing a
number not contemporaneously outstanding and containing identical terms and
provisions. 

     At the
option of the Holder, Registered Securities of any series may be exchanged for
other Registered Securities of the same series, of any authorized denomination
or denominations and of a like aggregate principal amount, containing identical
terms and provisions, upon surrender of the Registered Securities to be
exchanged at any such office or agency. Whenever any Registered Securities are
so surrendered for exchange, the Company shall execute, and the Trustee shall
authenticate and deliver, the Registered Securities which the Holder making the
exchange is entitled to receive. Unless otherwise specified with respect to any
series of Securities as contemplated by Section 301, Bearer Securities may not
be issued in exchange for Registered Securities. 

23 

     If (but only
if) permitted by the applicable Board Resolution and (subject to Section 303)
set forth in the applicable Officers’ Certificate, or in any indenture
supplemental hereto, delivered as contemplated by Section 301, at the option of
the Holder, Bearer Securities of any series may be exchanged for Registered
Securities of the same series of any authorized denominations and of a like
aggregate principal amount and tenor, upon surrender of the Bearer Securities to
be exchanged at any such office or agency, with all unmatured coupons and all
matured coupons in default thereto appertaining. If the Holder of a Bearer
Security is unable to produce any such unmatured coupon or coupons or matured
coupon or coupons in default, any such permitted exchange may be effected if the
Bearer Securities are accompanied by payment in funds acceptable to the Company
in an amount equal to the face amount of such missing coupon or coupons, or the
surrender of such missing coupon or coupons may be waived by the Company and the
Trustee if there is furnished to them such security or indemnity as they may
require to save each of them and any Paying Agent harmless. If thereafter the
Holder of such Security shall surrender to any Paying Agent any such missing
coupon in respect of which such a payment shall have been made, such Holder
shall be entitled to receive the amount of such payment; provided,
however, that, except as otherwise provided in Section 1002, interest
represented by coupons shall be payable only upon presentation and surrender of
those coupons at an office or agency located outside the United States.
Notwithstanding the foregoing, in case a Bearer Security of any series is
surrendered at any such office or agency in a permitted exchange for a
Registered Security of the same series and like tenor after the close of
business at such office or agency on (i) any Regular Record Date and before the
opening of business at such office or agency on the relevant Interest Payment
Date, or (ii) any Special Record Date and before the opening of business at such
office or agency on the related proposed date for payment of Defaulted Interest,
such Bearer Security shall be surrendered without the coupon relating to such
Interest Payment Date or proposed date for payment, as the case may be, and
interest or Defaulted Interest, as the case may be, will not be payable on such
Interest Payment Date or proposed date for payment, as the case may be, in
respect of the Registered Security issued in exchange for such Bearer Security,
but will be payable only to the Holder of such coupon when due in accordance
with the provisions of this Indenture. 

     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. 

     Notwithstanding the foregoing, except as otherwise specified as
contemplated by Section 301, any permanent global Security shall be exchangeable
only as provided in this paragraph. If any beneficial owner of an interest in a
permanent global Security is entitled to exchange such interest for Securities
of such series and of like tenor and principal amount of another authorized form
and denomination, as specified as contemplated by Section 301 and provided that
any applicable notice provided in the permanent global Security shall have been
given, then without unnecessary delay but in any event not later than the
earliest date on which such interest may be so exchanged, the Company shall
deliver to the Trustee definitive Securities in aggregate principal amount equal
to the principal amount of such beneficial owner’s interest in such permanent
global Security, executed by the Company. On or after the earliest date on which
such interests may be so exchanged, such permanent global Security shall be
surrendered by the Common Depositary or such other depositary as shall be
specified in the Company Order with respect thereto to the Trustee, as the
Company’s agent for such purpose, to be exchanged, in whole or from time to time
in part, for definitive Securities without charge and the Trustee shall
authenticate and deliver, in exchange for each portion of such permanent global
Security, an equal aggregate principal amount of definitive Securities of the
same series of authorized denominations and of like tenor as the portion of such
permanent global Security to be exchanged which, unless the Securities of the
series are not issuable both as Bearer Securities and as Registered Securities,
as specified as contemplated by Section 301, shall be in the form of Bearer
Securities or Registered Securities, or any combination thereof, as shall be
specified by the beneficial owner thereof; provided, however, that
no such exchanges may occur during a period beginning at the opening of business
15 days before any selection of Securities to be redeemed and ending on the
relevant Redemption Date if the Security for which exchange is requested may be
among those selected for redemption; and provided further that no
Bearer Security delivered in exchange for a portion of a permanent global
Security shall be mailed or otherwise delivered to any location in the United
States. If a Registered Security is issued in exchange for any portion of a
permanent global Security after the close of business at the office or agency
where such exchange occurs on (i) any Regular Record Date and before the opening
of business at such office or agency on the relevant Interest Payment Date, or
(ii) any Special Record Date and before the opening of business at such office
or agency on the related proposed date for payment of Defaulted Interest,
interest or Defaulted Interest, as the case may be, will not be payable on such
Interest Payment Date or proposed date for payment, as the case may be, in
respect of such Registered Security, but will be payable on such Interest
Payment Date or proposed date for payment, as the case may be, only to the
Person to whom interest in respect of such portion of such permanent global
Security is payable in accordance with the provisions of this Indenture.

24 

     All
Securities issued upon any registration of 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 registration of transfer or exchange. 

     Every
Registered Security presented or surrendered for registration of transfer or for
exchange shall (if so required by the Company or the Security Registrar) be duly
endorsed, or be accompanied by a written instrument of transfer in form
satisfactory to the Company and the Security Registrar, duly executed by the
Holder thereof or his attorney duly authorized in writing. 

     No service
charge shall be made for any registration of transfer or exchange of Securities,
but the Company may require payment of a sum sufficient to cover any tax or
other governmental charge that may be imposed in connection with any
registration of transfer or exchange of Securities, other than exchanges
pursuant to Section 304, 906, 1107 or 1305 not involving any transfer.

     The Company
shall not be required (i) to issue, register the transfer of or exchange any
Security if such Security may be among those selected for redemption during a
period beginning at the opening of business 15 days before selection of the
Securities to be redeemed under Section 1103 and ending at the close of business
on (A) if such Securities are issuable only as Registered Securities, the day of
the mailing of the relevant notice of redemption and (B) if such Securities are
issuable as Bearer Securities, the day of the first publication of the relevant
notice of redemption or, if such Securities are also issuable as Registered
Securities and there is no publication, the mailing of the relevant notice of
redemption, or (ii) to register the transfer of or exchange any Registered
Security so selected for redemption in whole or in part, except, in the case of
any Registered Security to be redeemed in part, the portion thereof not to be
redeemed, or (iii) to exchange any Bearer Security so selected for redemption
except that such a Bearer Security may be exchanged for a Registered Security of
that series and like tenor, provided that such Registered Security
shall be simultaneously surrendered for redemption, or (iv) to issue, register
the transfer of or exchange any Security which has been surrendered for
repayment at the option of the Holder, except the portion, if any, of such
Security not to be so repaid. 

     SECTION
306. Mutilated, Destroyed, Lost and Stolen Securities. If any mutilated Security or a Security with a mutilated
coupon appertaining to it is surrendered to the Trustee or the Company, together
with, in proper cases, such security or indemnity as may be required by the
Company or the Trustee to save each of them or any agent of either of them
harmless, the Company shall execute and the Trustee shall authenticate and
deliver in exchange therefore a new Security of the same series and principal
amount, containing identical terms and provisions and bearing a number not
contemporaneously outstanding, with coupons corresponding to the coupons, if
any, appertaining to the surrendered Security. 

     If there
shall be delivered to the Company and to 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 either 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
protected purchaser (as defined in the Uniform Commercial Code), the Company
shall execute and upon its request 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 principal amount, containing identical terms and provisions 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. 

25 

     Notwithstanding the provisions of the previous two paragraphs, 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, with coupons corresponding to the coupons, if any,
appertaining to such mutilated, destroyed, lost or stolen Security or to the
Security to which such mutilated, destroyed, lost or stolen coupon appertains,
pay such Security or coupon; provided, however, that payment of
principal of (and premium, if any) and interest, if any, on Bearer Securities
shall, except as otherwise provided in Section 1002, be payable only at an
office or agency located outside the United States and, unless otherwise
specified as contemplated by Section 301, any interest on Bearer Securities
shall be payable only upon presentation and surrender of the coupons
appertaining thereto. 

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

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

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

     SECTION
307. Payment of Interest; Interest Rights Preserved; Optional Interest
Reset. (a) Except as otherwise specified with
respect to a series of Securities in accordance with the provisions of Section
301, interest, if any, on any Registered Security that is payable, and is
punctually paid or duly provided for, on any Interest Payment Date shall be paid
to the Person in whose name that Security (or one or more Predecessor
Securities) is registered at the close of business on the Regular Record Date
for such interest at the office or agency of the Company maintained for such
purpose pursuant to Section 1002; provided, however, that each installment of
interest, if any, on any Registered Security may at the Company’s option be paid
by (i) mailing a check for such interest, payable to or upon the written order
of the Person entitled thereto pursuant to Section 309, to the address of such
Person as it appears on the Security Register or (ii) transfer to an account
maintained by the payee inside the United States. 

     Unless
otherwise provided as contemplated by Section 301 with respect to the Securities
of any series, payment of interest, if any, may be made, in the case of a Bearer
Security, by transfer to an account maintained by
the payee with a bank located outside the United States. 

     Unless otherwise provided as
contemplated by Section 301, every permanent global Security will provide that
interest, if any, payable on any Interest Payment Date will be paid to each of
Euroclear and Clearstream with respect to that portion of such permanent global
Security held for its account by the Common Depositary, for the purpose of
permitting each of Euroclear and Clearstream to credit the interest, if any,
received by it in respect of such permanent global Security to the accounts of
the beneficial owners thereof. 

     In case a
Bearer Security of any series is surrendered in exchange for a Registered
Security of such series after the close of business (at an office or agency in a
Place of Payment for such series) on any Regular Record Date and before the
opening of business (at such office or agency) on the next succeeding Interest
Payment Date, such Bearer Security shall be surrendered without the coupon
relating to such Interest Payment Date and interest will not be payable on such
Interest Payment Date in respect of the Registered Security issued in exchange
for such Bearer Security, but will be payable only to the Holder of such coupon
when due in accordance with the provisions of this Indenture. 

26 

     Except as
otherwise specified with respect to a series of Securities in accordance with
the provisions of Section 301, any interest on any Registered Security of any
series that is payable, but is not punctually paid or duly provided for, on any
Interest Payment Date (herein called “Defaulted Interest”) shall
forthwith cease to be payable to the registered Holder thereof on the relevant
Regular Record Date by virtue of having been such Holder, and such Defaulted
Interest may be paid by the Company, at its election in each case, as provided
in clause (1) or (2) below: 

(1) The Company
may elect to make payment of any Defaulted Interest to the Persons in whose
names the Registered Securities of such series (or their respective Predecessor
Securities) are registered at the close of business on a Special Record Date for
the payment of such Defaulted Interest, which shall be fixed in the following
manner. The Company shall notify the Trustee in writing of the amount of
Defaulted Interest proposed to be paid on each Registered Security of such
series and the date of the proposed payment (which shall not be less than 20
days after such notice is received by the Trustee), and at the same time the
Company shall deposit with the Trustee an amount of money in the Currency in
which the Securities of such series are payable (except as otherwise specified
pursuant to Section 301 for the Securities of such series and except, if
applicable, as provided in Sections 312(b), 312(d) and 312(e)) equal to the
aggregate amount proposed to be paid in respect of such Defaulted Interest or
shall make arrangements satisfactory to the Trustee for such deposit on or prior
to the date of the proposed payment, such money when deposited to be held in
trust for the benefit of the Persons entitled to such Defaulted Interest as in
this clause provided. Thereupon the Trustee shall fix a Special Record Date for
the payment of such Defaulted Interest which shall be not more than 15 days and
not less than 10 days prior to the date of the proposed payment and not less
than 10 days after the receipt by the Trustee of the notice of the proposed
payment. The Trustee shall promptly notify the
Company of such Special Record Date and, in the name and at the expense of the
Company, shall cause notice of the proposed payment of such Defaulted Interest
and the Special Record Date therefore to be mailed, first-class postage prepaid,
to each Holder of Registered Securities of such series at his address as it
appears in the Security Register not less than 10 days prior to such Special
Record Date. Notice of the proposed payment of such Defaulted Interest and the
Special Record Date therefore having been mailed as aforesaid, such Defaulted
Interest shall be paid to the Persons in whose names the Registered Securities
of such series (or their respective Predecessor Securities) are registered at
the close of business on such Special Record Date and shall no longer be payable
pursuant to the following clause (2). In case a Bearer Security of any series is
surrendered at the office or agency in a Place of Payment for such series in
exchange for a Registered Security of such series after the close of business at
such office or agency on any Special Record Date and before the opening of
business at such office or agency on the related proposed date for payment of
Defaulted Interest, such Bearer Security shall be surrendered without the coupon
relating to such proposed date of payment and Defaulted Interest will not be
payable on such proposed date of payment in respect of the Registered Security
issued in exchange for such Bearer Security, but will be payable only to the
Holder of such coupon when due in accordance with the provisions of this
Indenture. 

(2) The Company
may make payment of any Defaulted Interest on the Registered Securities of any
series in any other lawful manner not inconsistent with the requirements of any
securities exchange on which such Securities may be listed, and upon such notice
as may be required by such exchange, if, after notice given by the Company to
the Trustee of the proposed payment pursuant to this clause, such manner of
payment shall be deemed practicable by the Trustee. 

     (b) The
provisions of this Section 307(b) may be made applicable to any series of
Securities pursuant to Section 301 (with such modifications, additions or
substitutions as may be specified pursuant to such Section 301). The interest
rate (or the spread or spread multiplier used to calculate such interest rate,
if applicable) on any Security of such series may be reset by the Company on the
date or dates specified on the face of such Security (each an “Optional Reset
Date”). The Company may exercise such option with respect to such Security
by notifying the Trustee of such exercise at least 45 but not more than 60 days
prior to an Optional Reset Date for such Security. Not later than 40 days prior
to each Optional Reset Date, the Trustee shall transmit, in the manner provided
for in Section 106, to the Holder of any such Security a notice (the “Reset
Notice”) indicating whether the Company has elected to reset the interest
rate (or the spread or spread multiplier used to calculate such interest rate,
if applicable), and if so (i) such new interest rate (or such new spread or
spread multiplier, if applicable) and (ii) the provisions, if any, for
redemption during the period from such Optional Reset Date to the next Optional
Reset Date or if there is no such next Optional Reset Date, to the Stated
Maturity Date of such Security (each such period a “Subsequent Interest
Period”), including the date or dates on which or the period or periods
during which and the price or prices at which such redemption may occur during
the Subsequent Interest Period. 

27 

     Notwithstanding the foregoing, not later than 20 days prior to the
Optional Reset Date, the Company may, at its option, revoke the interest rate
(or the spread or spread multiplier used to calculate such interest rate, if
applicable) provided for in the Reset Notice and establish an interest rate (or
a spread or spread multiplier used to calculate such interest rate, if
applicable) that is higher than the interest rate (or the spread or spread
multiplier, if applicable) provided for in the Reset Notice, for the Subsequent
Interest Period by causing the Trustee to transmit, in the manner provided for
in Section 106, notice of such higher interest rate (or such higher spread or
spread multiplier, if applicable) to the Holder of such Security. Such notice
shall be irrevocable. All Securities with respect to which the interest rate (or
the spread or spread multiplier used to calculate such interest rate, if
applicable) is reset on an Optional Reset Date, and with respect to which the
Holders of such Securities have not tendered such Securities for repayment (or
have validly revoked any such tender) pursuant to the next succeeding paragraph,
will bear such higher interest rate (or such higher spread or spread multiplier,
if applicable). 

     The Holder
of any such Security will have the option to elect repayment by the Company of
the principal of such Security on each Optional Reset Date at a price equal to
the principal amount thereof plus interest accrued to such Optional Reset Date.
In order to obtain repayment on an Optional Reset Date, the Holder must follow
the procedures set forth in Article Thirteen for repayment at the option of
Holders except that the period for delivery or notification to the Trustee shall
be at least 25 but not more than 35 days prior to such Optional Reset Date and
except that, if the Holder has tendered any Security for repayment pursuant to
the Reset Notice, the Holder may, by written notice to the Trustee, revoke such
tender or repayment until the close of business on the tenth day before such
Optional Reset Date. 

     Subject to
the foregoing provisions of this Section and Section 305, each Security
delivered under this Indenture upon registration of transfer of or in exchange
for or in lieu of any other Security shall carry the rights to interest accrued
and unpaid, and to accrue, which were carried by such other Security.

     SECTION
308. Optional Extension of Maturity. The
provisions of this Section 308 may be made applicable to any series of
Securities pursuant to Section 301 (with such modifications, additions or
substitutions as may be specified pursuant to such Section 301). The Stated
Maturity of any Security of such series may be extended at the option of the
Company for the period or periods specified on the face of such Security (each
an “Extension Period”) up to but not beyond the date (the “Final Maturity”) set forth
on the face of such Security. The Company may exercise such option with respect
to any Security by notifying the Trustee of such exercise at least 45 but not
more than 60 days prior to the Stated Maturity of such Security in effect prior
to the exercise of such option (the “Original
Stated Maturity”). If the Company exercises
such option, the Trustee shall transmit, in the manner provided for in Section
106, to the Holder of such Security not later than 40 days prior to the Original
Stated Maturity a notice (the “Extension
Notice”) indicating (i) the election of the
Company to extend the Stated Maturity, (ii) the new Stated Maturity, (iii) the
interest rate, if any, applicable to the Extension Period and (iv) the
provisions, if any, for redemption during such Extension Period. Upon the
Trustee’s transmittal of the Extension Notice, the Stated Maturity of such
Security shall be extended automatically and, except as modified by the
Extension Notice and as described in the next paragraph, such Security will have
the same terms as prior to the transmittal of such Extension Notice. 

28 

     Notwithstanding the foregoing, not later than 20 days before the Original
Stated Maturity of such Security, the Company may, at its option, revoke the
interest rate provided for in the Extension Notice and establish a higher
interest rate for the Extension Period by causing the Trustee to transmit, in
the manner provided for in Section 106, notice of such higher interest rate to
the Holder of such Security. Such notice shall be irrevocable. All Securities
with respect to which the Stated Maturity is extended will bear such higher
interest rate. 

     If the
Company extends the Stated Maturity of any Security, the Holder will have the
option to elect repayment of such Security by the Company on the Original Stated
Maturity at a price equal to the principal amount thereof, plus interest accrued
to such date. In order to obtain repayment on the Original Stated Maturity once
the Company has extended the Stated Maturity thereof, the Holder must follow the
procedures set forth in Article Thirteen for repayment at the option of Holders,
except that the period for delivery or notification to the Trustee shall be at
least 25 but not more than 35 days prior to the Original Stated Maturity and
except that, if the Holder has tendered any Security for repayment pursuant to
an Extension Notice, the Holder may by written notice to the Trustee revoke such
tender for repayment until the close of business on the tenth day before the
Original Stated Maturity. 

     SECTION
309. Persons Deemed Owners. Prior to due
presentment of a Registered Security for registration of transfer, the Company,
the Trustee and any agent of the Company or the Trustee may treat the Person in
whose name such Registered Security is registered as the owner of such Security
for the purpose of receiving payment of principal of (and premium, if any) and
(subject to Sections 305 and 307) interest, if any, on such Registered Security
and for all other purposes whatsoever, whether or not such Registered Security
be overdue, and neither the Company, the Trustee nor any agent of the Company or
the Trustee shall be affected by notice to the contrary. 

     Title to any
Bearer Security and any coupons appertaining thereto shall pass by delivery. The
Company, the Trustee and any agent of the Company or the Trustee may treat the
bearer of any Bearer Security and the bearer of any coupon as the absolute owner
of such Security or coupon for the purpose of receiving payment thereof or on
account thereof and for all other purposes whatsoever, whether or not such
Security or coupon be overdue, and neither the Company, the Trustee nor any
agent of the Company or the Trustee shall be affected by notice to the contrary.

     None of the
Company, the Trustee, any Paying Agent or the Security Registrar will have any
responsibility or liability for any aspect of the records relating to or
payments made on account of beneficial ownership interests of a Security in
global form or for maintaining, supervising or reviewing any records relating to
such beneficial ownership interests. 

     Notwithstanding the foregoing, with respect to any global Security,
nothing herein shall prevent the Company, the Trustee, or any agent of the
Company or the Trustee, from giving effect to any written certification, proxy
or other authorization furnished by any depositary, as a Holder, with respect to
such global Security or impair, as between such depositary and owners of
beneficial interests in such global Security, the operation of customary
practices governing the exercise of the rights of such depositary (or its
nominee) as Holder of such global Security. 

     SECTION
310. Cancellation. All Securities and coupons surrendered for payment,
redemption, repayment at the option of the Holder, registration of transfer or
exchange or for credit against any sinking fund payment shall, if surrendered to
any Person other than the Trustee, be delivered to the Trustee, and any such
Securities and coupons and Securities and coupons surrendered directly to the
Trustee for any such purpose shall be promptly cancelled by it. The Company may
at any time deliver to the Trustee for cancellation any Securities previously
authenticated and delivered hereunder which the Company may have acquired in any
manner whatsoever, and may deliver to the Trustee (or to any other Person for
delivery to the Trustee) for cancellation any Securities previously
authenticated hereunder which the Company has not issued and sold, and all
Securities so delivered shall be promptly cancelled by the Trustee. If the
Company shall so acquire any of the Securities, however, such acquisition shall
not operate as a redemption or satisfaction of the indebtedness represented by
such Securities unless and until the same are surrendered to the Trustee for
cancellation. No Securities shall be authenticated in lieu of or in exchange for
any Securities cancelled as provided in this Section, except as expressly
permitted by this Indenture. Cancelled Securities and coupons held by the
Trustee shall be disposed of by the Trustee in accordance with its customary
procedures and the Trustee shall deliver a certificate of stating that such
cancelled securities and coupons have been disposed of, unless by a Company
Order the Company directs their return to it. 

29 

     SECTION
311. Computation of Interest. Except as
otherwise specified as contemplated by Section 301 with respect to Securities of
any series, interest, if any, on the Securities of each series shall be computed
on the basis of a 360-day year consisting of twelve 30-day months. 

     SECTION
312. Currency and Manner of Payments in Respect of Securities. (a) Unless otherwise specified with respect to any Securities
pursuant to Section 301, with respect to Registered Securities of any series not
permitting the election provided for in paragraph (b) below or the Holders of
which have not made the election provided for in paragraph (b) below, and with
respect to Bearer Securities of any series, except as provided in paragraph (d)
below, payment of the principal of (and premium, if any) and interest, if any,
on any Registered or Bearer Security of such series will be made in the Currency
in which such Registered Security or Bearer Security, as the case may be, is
payable. The provisions of this Section 312 may be modified or superseded with
respect to any Securities pursuant to Section 301. 

     (b) It may
be provided pursuant to Section 301 with respect to Registered Securities of any
series that Holders shall have the option, subject to paragraphs (d) and (e)
below, to receive payments of principal of (or premium, if any) or interest, if
any, on such Registered Securities in any of the Currencies which may be
designated for such election by delivering to the Trustee for such series of
Registered Securities a written election with signature guarantees and in the
applicable form established pursuant to Section 301, not later than the close of
business on the Election Date immediately preceding the applicable payment date.
If a Holder so elects to receive such payments in any such Currency, such
election will remain in effect for such Holder or any transferee of such Holder
until changed by such Holder or such transferee by written notice to the Trustee
for such series of Registered Securities (but any such change must be made not
later than the close of business on the Election Date immediately preceding the
next payment date to be effective for the payment to be made on such payment
date and no such change of election may be made
with respect to payments to be made on any Registered Security of such series
with respect to which an Event of Default has occurred or with respect to which
the Company has deposited funds pursuant to Article Four or Fourteen or with
respect to which a notice of redemption has been given by the Company or a
notice of option to elect repayment has been sent by such Holder or such
transferee). Any Holder of any such Registered Security who shall not have
delivered any such election to the Trustee of such series of Registered
Securities not later than the close of business on the applicable Election Date
will be paid the amount due on the applicable payment date in the relevant
Currency as provided in Section 312(a). The Trustee for each such series of
Registered Securities shall notify the Exchange Rate Agent as soon as
practicable after the Election Date of the aggregate principal amount of
Registered Securities for which Holders have made such written election.

     (c) Unless
otherwise specified pursuant to Section 301, if the election referred to in
paragraph (b) above has been provided for pursuant to Section 301, then, unless
otherwise specified pursuant to Section 301, not later than the fourth Business
Day after the Election Date for each payment date for Registered Securities of
any series, the Exchange Rate Agent will deliver to the Company a written notice
specifying the Currency in which Registered Securities of such series are
payable, the respective aggregate amounts of principal of (and premium, if any)
and interest, if any, on the Registered Securities to be paid on such payment
date, specifying the amounts in such Currency so payable in respect of the
Registered Securities as to which the Holders of Registered Securities
denominated in any Currency shall have elected to be paid in another Currency as
provided in paragraph (b) above. If the election referred to in paragraph (b)
above has been provided for pursuant to Section 301 and if at least one Holder
has made such election, then, unless otherwise specified pursuant to Section
301, on the second Business Day preceding such payment date the Company will
deliver to the Trustee for such series of Registered Securities an Exchange Rate
Officer’s Certificate in respect of the Dollar or Foreign Currency or Currencies
payments to be made on such payment date. Unless otherwise specified pursuant to
Section 301, the Dollar or Foreign Currency or Currencies amount receivable by
Holders of Registered Securities who have elected payment in a Currency as
provided in paragraph (b) above shall be determined by the Company on the basis
of the applicable Market Exchange Rate in effect on the second Business Day (the
“Valuation Date”) immediately preceding each payment date, and such
determination shall be conclusive and binding for all purposes, absent manifest
error. 

30 

     (d) If a
Conversion Event occurs with respect to a Foreign Currency in which any of the
Securities are denominated or payable other than pursuant to an election
provided for pursuant to paragraph (b) above, then with respect to each date for
the payment of principal of (and premium, if any) and interest, if any on the
applicable Securities denominated or payable in such Foreign Currency occurring
after the last date on which such Foreign Currency was used (the
“Conversion Date”), the Dollar shall be the currency of payment for use on each such
payment date. Unless otherwise specified pursuant to Section 301, the Dollar
amount to be paid by the Company to the Trustee of each such series of
Securities and by such Trustee or any Paying Agent to the Holders of such
Securities with respect to such payment date shall be, in the case of a Foreign
Currency other than a currency unit, the Dollar Equivalent of the Foreign
Currency or, in the case of a currency unit, the Dollar Equivalent of the
Currency Unit, in each case as determined by the Exchange Rate Agent in the
manner provided in paragraph (f) or (g) below. 

     (e) Unless
otherwise specified pursuant to Section 301, if the Holder of a Registered
Security denominated in any Currency shall have elected to be paid in another
Currency as provided in paragraph (b) above, and a Conversion Event occurs with
respect to such elected Currency, such Holder shall receive payment in the
Currency in which payment would have been made in the absence of such election;
and if a Conversion Event occurs with respect to the Currency in which payment
would have been made in the absence of such election, such Holder shall receive
payment in Dollars as provided in paragraph (d) of this Section 312. 

     (f) The
“Dollar Equivalent of the Foreign
Currency” shall be determined by the Exchange
Rate Agent and shall be obtained for each subsequent payment date by converting
the specified Foreign Currency into Dollars at the Market Exchange Rate on the
Conversion Date. 

     (g) The
“Dollar Equivalent of the Currency
Unit” shall be determined by the Exchange
Rate Agent and subject to the provisions of paragraph (h) below shall be the sum
of each amount obtained by converting the Specified Amount of each Component
Currency into Dollars at the Market Exchange Rate for such Component Currency on
the Valuation Date with respect to each payment. 

(h) For
purposes of this Section 312, the following terms shall have the following
meanings: 

A
“Component Currency” shall mean any Currency which, on the Conversion Date, was a component
currency of the relevant currency unit, including, but not limited to, the ECU.

A
“Specified Amount” of a Component Currency shall mean the number of units of such
Component Currency or fractions thereof which were represented in the relevant
currency unit, including, but not limited to, the ECU, on the Conversion Date.
If after the Conversion Date the official unit of any Component Currency is
altered by way of combination or subdivision, the Specified Amount of such
Component Currency shall be divided or multiplied in the same proportion. If
after the Conversion Date two or more Component Currencies are consolidated into
a single currency, the respective Specified Amounts of such Component Currencies
shall be replaced by an amount in such single currency equal to the sum of the
respective Specified Amounts of such consolidated Component Currencies expressed
in such single currency, and such amount shall thereafter be a Specified Amount
and such single currency shall thereafter be a Component Currency. If after the
Conversion Date any Component Currency shall be divided into two or more
currencies, the Specified Amount of such Component Currency shall be replaced by
amounts of such two or more currencies, having an aggregate Dollar Equivalent
value at the Market Exchange Rate on the date of such replacement equal to the
Dollar Equivalent of the Specified Amount of such former Component Currency at
the Market Exchange Rate immediately before such division, and such amounts
shall thereafter be Specified Amounts and such currencies shall thereafter be
Component Currencies. If, after the Conversion Date of the relevant currency
unit, including, but not limited to, the ECU, a Conversion Event (other than any
event referred to above in this definition of “Specified Amount”) occurs
with respect to any Component Currency of such currency unit and is continuing
on the applicable Valuation Date, the Specified Amount of such Component
Currency shall, for purposes of calculating the Dollar Equivalent of the
Currency Unit, be converted into Dollars at the Market Exchange Rate in effect
on the Conversion Date of such Component Currency. 

31 

“Election Date” shall mean the Regular Record Date for the applicable series
of Registered Securities or at least 16 days prior to Maturity, as the case may
be, or such other prior date for any series of Registered Securities as
specified pursuant to clause 13 of Section 301 by which the written election
referred to in Section 312(b) may be made. 

     All
decisions and determinations of the Exchange Rate Agent regarding the Dollar
Equivalent of the Foreign Currency, the Dollar Equivalent of the Currency Unit,
the Market Exchange Rate and changes in the Specified Amounts as specified above
shall be in its sole discretion and shall, in the absence of manifest error, be
conclusive for all purposes and irrevocably binding upon the Company, the
Trustee for the appropriate series of Securities and all Holders of such
Securities denominated or payable in the relevant Currency. The Exchange Rate
Agent shall promptly give written notice to the Company and the Trustee for the
appropriate series of Securities of any such decision or determination.

     In the event
that the Company determines in good faith that a Conversion Event has occurred
with respect to a Foreign Currency, the Company will immediately give written
notice thereof to the Trustee of the appropriate series of Securities and to the
Exchange Rate Agent (and such Trustee will promptly thereafter give notice in
the manner provided in Section 106 to the affected Holders) specifying the
Conversion Date. In the event the Company so determines that a Conversion Event
has occurred with respect to the ECU or any other currency unit in which
Securities are denominated or payable, the Company will immediately give written
notice thereof to the Trustee of the appropriate series of Securities and to the
Exchange Rate Agent (and such Trustee will promptly thereafter give notice in
the manner provided in Section 106 to the affected Holders) specifying the
Conversion Date and the Specified Amount of each Component Currency on the
Conversion Date. In the event the Company determines in good faith that any
subsequent change in any Component Currency as set forth in the definition of
Specified Amount above has occurred, the Company will similarly give written
notice to the Trustee of the appropriate series of Securities and to the
Exchange Rate Agent. 

     The Trustee
of the appropriate series of Securities shall be fully justified and protected
in relying and acting upon information received by it from the Company and the
Exchange Rate Agent and shall not otherwise have any duty or obligation to
determine the accuracy or validity of such information independent of the
Company or the Exchange Rate Agent. 

     SECTION
313. Appointment and Resignation of Successor Exchange Rate Agent. (a)
Unless otherwise specified pursuant to Section 301, if and so long as the
Securities of any series (i) are denominated in a Foreign Currency or (ii) may
be payable in a Foreign Currency, or so long as it is required under any other
provision of this Indenture, then the Company will maintain with respect to each
such series of Securities, or as so required, at least one Exchange Rate Agent.
The Company will cause the Exchange Rate Agent to make the necessary foreign
exchange determinations at the time and in the manner specified pursuant to
Section 301 for the purpose of determining the applicable rate of exchange and,
if applicable, for the purpose of converting the issued Foreign Currency into
the applicable payment Currency for the payment of principal (and premium, if
any) and interest, if any, pursuant to Section 312. 

32 

     (b) No
resignation of the Exchange Rate Agent and no appointment of a successor
Exchange Rate Agent pursuant to this Section shall become effective until the
acceptance of appointment by the successor Exchange Rate Agent as evidenced by a
written instrument delivered to the Company and the Trustee of the appropriate
series of Securities accepting such appointment executed by the successor
Exchange Rate Agent. 

     (c) If the
Exchange Rate Agent shall resign, be removed or become incapable of acting, or
if a vacancy shall occur in the office of the Exchange Rate Agent for any cause,
with respect to the Securities of one or more series, the Company, by or
pursuant to a Board Resolution, shall promptly appoint a successor Exchange Rate
Agent or Exchange Rate Agents with respect to the Securities of that or those
series (it being understood that any such successor Exchange Rate Agent may be
appointed with respect to the Securities of one or more or all of such series
and that, unless otherwise specified pursuant to Section 301, at any time there
shall only be one Exchange Rate Agent with respect to the Securities of any
particular series that are originally issued by the Company on the same date and
that are initially denominated and/or payable in the same Currency). 

     SECTION
314. CUSIP Numbers. The Company in issuing
the Securities may use “CUSIP” numbers (if then generally in use), and, if so,
the Trustee shall indicate the “CUSIP” numbers of the Securities in notices of
redemption as a convenience to Holders; provided that any such notice may
state that no representation is made as to the correctness of such numbers
either as printed on the Securities or as contained in any notice of redemption
and that reliance may be placed only on the other identification numbers printed
on the Securities, and any such redemption shall not be affected by any defect
in or omission of such numbers. The Company shall promptly notify the Trustee of
any change in “CUSIP” numbers. 

ARTICLE FOUR 
SATISFACTION AND DISCHARGE 

     SECTION
401. Satisfaction and Discharge of Indenture.
This Indenture shall upon Company Request cease to be of further effect with
respect to any series of Securities specified in such Company Request (except as
to any surviving rights of registration of transfer or exchange of Securities of
such series expressly provided for herein or pursuant hereto and any right to
receive Additional Amounts, as provided in Section 1011), and the Trustee, upon
receipt of a Company Order, and at the expense of the Company, shall execute
proper instruments acknowledging satisfaction and discharge of this Indenture as
to such series when: 

(1) either:

     (A) all Securities of such series theretofore authenticated
and delivered and all coupons, if any, appertaining thereto (other than (i)
coupons appertaining to Bearer Securities surrendered for exchange for
Registered Securities and maturing after such exchange, whose surrender is not
required or has been waived as provided in Section 305, (ii) Securities and
coupons of such series which have been destroyed, lost or stolen and which have
been replaced or paid as provided in Section 306, (iii) coupons appertaining to
Securities called for redemption and maturing after the relevant Redemption
Date, whose surrender has been waived as provided in Section 1106, and (iv)
Securities and coupons of such series for whose payment money has theretofore
been deposited in trust or segregated and held in trust by the Company and
thereafter repaid to the Company or discharged from such trust, as provided in
Section 605) have been delivered to the Trustee for cancellation; or 

33 

     (B) all Securities of such series and, in the case of (i) or
(ii) below, any coupons appertaining thereto not theretofore delivered to the
Trustee for cancellation: 

     (i) have become due and payable, or 

     (ii) will become due and payable at their Stated Maturity
within one year, or 

     (iii) if redeemable at the option of the Company, are to be
called for redemption within one year under arrangements satisfactory to the
Trustee for the giving of notice of redemption by the Trustee in the name, and
at the expense, of the Company,

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

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

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

Notwithstanding the satisfaction and
discharge of this Indenture, the obligations of the Company to the Trustee and
any predecessor Trustee under Section 606, the obligations of the Company to any
Authenticating Agent under Section 615 and, if money shall have been deposited
with the Trustee pursuant to subclause (B) of
clause (1) of this Section, the obligations of the Trustee under Section 402 and
the second paragraph of Section 605 shall survive. 

     SECTION
402. Application of Trust Funds. Subject to
the provisions of the second paragraph of Section 605, all money deposited with
the Trustee pursuant to Section 401 shall be held in trust and applied by it, in
accordance with the provisions of the Securities, the coupons and this
Indenture, to the payment, either directly or through any Paying Agent
(including the Company acting as its own Paying Agent) as the Trustee may
determine, to the Persons entitled thereto, of the principal (and premium, if
any) and interest, if any, for whose payment such money has been deposited with
or received by the Trustee, but such money need not be segregated from other
funds except to the extent required by law. 

34

ARTICLE FIVE 
REMEDIES 

     SECTION
501. Events of Default. “Event of Default,” wherever
used herein with respect to any particular series of Securities, unless
otherwise specified with respect to a series of Securities pursuant to Section
301, means any one of the following events (whatever the reason for such Event
of Default and whether or not it shall be voluntary or involuntary or be
effected by operation of law or pursuant to any judgment, decree or order of any
court or any order, rule or regulation of any administrative or governmental
body): 

     (1) a default in the payment of the principal of (or premium,
if any, on) any Security of that series when it becomes due and payable at its
Maturity, whether or not such payment is prohibited by the provisions of Article
Sixteen; or 

     (2) a default in the payment of any interest upon any Security
of that series or of any coupon appertaining thereto, when such interest or
coupon becomes due and payable, and continuance of such default for a period of
30 days, whether or not such payment is prohibited by the provisions of Article
Sixteen; or 

     (3) a
default in the deposit of any sinking fund payment, when and as due by the terms
of any Security of that series, whether or not such payment is prohibited by the
provisions of Article Sixteen; or

     (4) a default in the performance, or
breach, of any covenant or agreement of the Company in this Indenture with
respect to any Security of that series (other than a covenant or agreement a
default in whose performance or whose breach is elsewhere in this Section
specifically dealt with), and continuance of such default or breach for a period
of 60 days after there has been given, by registered or certified mail, to the
Company by the Trustee or to the Company and the Trustee by the Holders of at
least 25% in principal amount of the Outstanding Securities of that series a
written notice specifying such default or breach and requiring it to be remedied
and stating that such notice is a “Notice of
Default” hereunder; or

     (5) the
Company pursuant to or within the meaning of any Bankruptcy Law:

     (A) commences a voluntary case, 

35 

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

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

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

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

     (A) is for relief against the Company in an involuntary
case,

     (B) appoints a Custodian of the Company or for all or
substantially all of its property, or

     (C) orders the liquidation of the Company, 

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

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

The term “Bankruptcy Law” means title 11, U.S.
Code or any similar Federal or State law for the relief of debtors. The term
“Custodian”
means any receiver, trustee, assignee, liquidator or other similar official
under any Bankruptcy Law. 

     SECTION
502. Acceleration of Maturity; Rescission and Annulment. If an Event of Default with respect to Securities of any
series at the time Outstanding occurs and is continuing, then and in every such
case the Trustee or the Holders of not less than 25% in principal amount of the
Outstanding Securities of that series may declare the principal (or, if any
Securities are Original Issue Discount Securities or Indexed Securities, such
portion of the principal as may be specified in the terms thereof) of and
premium (if any) and accrued interest on all the Securities of that series to be
due and payable immediately, by a notice in writing to the Company (and to the
Trustee if given by the Holders), and upon any such declaration such principal
or specified portion thereof shall become immediately due and payable.

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

     (1) the
Company has paid or deposited with the Trustee a sum sufficient to pay in the
Currency in which the Securities of such series are payable (except as otherwise
specified pursuant to Section 301 for the Securities of such series and except,
if applicable, as provided in Sections 312(b), 312(d) and 312(e)): 

36 

     (A) all overdue installments of interest, if any, on all
Outstanding Securities of that series and any related coupons,

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

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

     (D) all sums paid or advanced by the Trustee hereunder and the
reasonable compensation, expenses, disbursements and advances of the Trustee,
its agents and counsel, and any other amounts due to the Trustee under Section
606; and

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

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

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

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

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

then the Company will, upon demand of the
Trustee, pay to the Trustee, for the benefit of the Holders of Securities of
such series and coupons, the whole amount then due and payable on such
Securities and coupons for principal (and premium, if any) and interest, if any,
with interest upon any overdue principal (and premium, if any) and, to the
extent that payment of such interest shall be legally enforceable, upon any
overdue installments of interest, if any, at the rate or rates borne by or
provided for in such Securities, and, in addition thereto, such further amount
as shall be sufficient to cover the costs and expenses of collection, including
the reasonable compensation, expenses, disbursements and advances of the
Trustee, its agents and counsel, and any other amounts due to the Trustee under
Section 606. 

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

37 

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

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

     (i) to file and prove a claim for
the whole amount of principal (or in the case of Original Issue Discount
Securities or Indexed Securities, such portion of the principal as may be
provided in the terms thereof)(and premium, if any) and interest, if any, owing
and unpaid in respect of the Securities and to file such other papers or
documents as may be necessary or advisable in order to have the claims of the
Trustee (including any claim for the reasonable compensation, expenses,
disbursements and advances of the Trustee, its agents and counsel, and any other
amounts due to the Trustee under Section 606) and of the Holders allowed in such
judicial proceeding, and

     (ii) to collect and receive any
moneys or other property payable or deliverable on any such claims and to
distribute the same;

and any custodian, receiver, assignee,
trustee, liquidator, sequestrator (or other similar official) in any such
judicial proceeding is hereby authorized by each Holder of Securities of such
series and coupons to make such payments to the Trustee, and in the event that
the Trustee shall consent to the making of such payments directly to the
Holders, to pay to the Trustee any amount due to it for the reasonable
compensation, expenses, disbursements and advances of the Trustee and any
predecessor Trustee, their agents and counsel, and any other amounts due the
Trustee or any predecessor Trustee under Section 606. 

     Nothing
herein contained shall be deemed to authorize the Trustee to authorize or
consent to or accept or adopt on behalf of any Holder of a Security or coupon
any plan of reorganization, arrangement, adjustment or composition affecting the
Securities or coupons or the rights of any Holder thereof, or to authorize the
Trustee to vote in respect of the claim of any Holder of a Security or coupon in
any such proceeding. 

38 

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

     SECTION
506. Application of Money Collected. Any
money collected by the Trustee pursuant to this Article shall be applied in the
following order, at the date or dates fixed by the Trustee and, in case of the
distribution of such money on account of principal (or premium, if any) or
interest, if any, upon presentation of the Securities or coupons, or both, as
the case may be, and the notation thereon of the payment if only partially paid
and upon surrender thereof if fully paid:

     FIRST: To the payment of all amounts due the Trustee and any
predecessor Trustee under Section 606;

     SECOND: Subject to Section 1602, if Article Sixteen were
applicable to the Securities as specified pursuant to Section 301, to the
payment of the amounts then due and unpaid upon the Securities and coupons for principal (and premium, if any) and interest,
if any, in respect of which or for the benefit of which such money has been
collected, ratably, without preference or priority of any kind, according to the
aggregate amounts due and payable on such Securities and coupons for principal
(and premium, if any) and interest, if any, respectively; and

     THIRD: To the payment of the remainder, if any, to the Company
or any other Person or Persons entitled thereto.

     SECTION
507. Limitation on Suits. No Holder of any
Security of any series or any related coupon shall have any right to institute
any proceeding, judicial or otherwise, with respect to this Indenture, or for
the appointment of a receiver or trustee, or for any other remedy hereunder,
unless:

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

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

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

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

39 

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

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

     SECTION
508. Unconditional Right of Holders to Receive Principal, Premium and
Interest. Notwithstanding any other provision
in this Indenture, the Holder of any Security or coupon shall have the right
which is absolute and unconditional to receive payment of the principal of (and
premium, if any) and (subject to Sections 305 and 307) interest, if any, on such
Security or payment of such coupon on the respective due dates expressed in such
Security or coupon (or, in the case of redemption, on the Redemption Date) and
to institute suit for the enforcement of any such payment, and such rights shall
not be impaired without the consent of such Holder. 

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

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

     SECTION
511. Delay or Omission Not Waiver. No delay
or omission of the Trustee or of any Holder of any Security or coupon to
exercise any right or remedy accruing upon any Event of Default shall impair any
such right or remedy or constitute a waiver of any such Event of Default or an
acquiescence therein. Every right and remedy given by this Article or by law to
the Trustee or to the Holders may be exercised from time to time, and as often
as may be deemed expedient, by the Trustee or by the Holders of Securities or
coupons, as the case may be. 

40 

     SECTION
512. Control by Holders of Securities. The
Holders of a majority in principal amount of the Outstanding Securities of any
series shall have the right to direct the time, method and place of conducting
any proceeding for any remedy available to the Trustee or exercising any trust
or power conferred on the Trustee with respect to the Securities of such series,
provided
that

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

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

     (3) the Trustee need not take any action which might involve
it in personal liability or be unjustly prejudicial to the Holders of Securities
of such series not consenting. 

     SECTION
513. Waiver of Past Defaults. Subject to
Section 502, the Holders of not less than a majority in principal amount of the
Outstanding Securities of any series may on behalf of the Holders of all the
Securities of such series and any related coupons waive any past default
hereunder with respect to such series and its consequences, except a
default

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

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

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

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

     SECTION
515. Undertaking to Pay Costs. All parties to
this Indenture agree, and each Holder of Securities by his acceptance thereof
shall be deemed to have agreed, that any court may, in its discretion, require,
in any suit for the enforcement of any right or remedy under this Indenture, or
in any suit against the Trustee for any action taken or omitted by it as
Trustee, the filing by any party litigant in such suit of an undertaking to pay
the costs of such suit and that such court may in its discretion assess
reasonable costs, including reasonable attorneys’ fees and expenses, against any
party litigant in such suit, having due regard to the merits and good faith of
the claims or defenses made by such party litigant; provided that the provisions
of this Section (to the extent permitted by law) shall not apply to any suit
instituted by the Trustee, to any suit instituted by any Holder of Securities,
or group of Holders of Securities, holding in the aggregate more than ten
percent (10%) in principal amount of the Securities at the time outstanding
determined in accordance with Article Fifteen, or to any suit instituted by any
Holder of Securities for the enforcement of the payment of the principal of or
premium, if any, or interest on any Security on or after the due date expressed
in such Security.

41 

     SECTION
516. Notice of Defaults. Within 90 days after
the occurrence of any Default hereunder with respect to the Securities of any
series, the Trustee shall transmit in the manner and to the extent provided in
TIA Section 313(c), notice of such Default hereunder known to the Trustee,
unless such Default shall have been cured or waived; provided, however, that, except in the case of a
Default in the payment of the principal of (or premium, if any) or interest, if
any, on any Security of such series, or in the payment of any sinking or
purchase fund installment with respect to the Securities of such series, the
Trustee shall be protected in withholding such notice if and so long as the
board of directors, the executive committee or a trust committee of directors
and/or Responsible Officers of the Trustee in good faith determines that the
withholding of such notice is in the interests of the Holders of the Securities
and coupons of such series; and provided further that in the case of any
Default or breach of the character specified in Section 501(4) with respect to
the Securities and coupons of such series, no such notice to Holders shall be
given until at least 60 days after the occurrence thereof. 

ARTICLE SIX
THE TRUSTEE 

     SECTION
601. Duties and Responsibilities of Trustee.
The Trustee, prior to the occurrence of an Event of Default and after the curing
of all Events of Default that may have occurred, undertakes to perform such
duties and only such duties as are specifically set forth in this Indenture. In
case an Event of Default has occurred (which has not been cured or waived), the
Trustee shall exercise such of the rights and powers vested in it by this
Indenture, and use the same degree of care and skill in their exercise, as a
prudent person would exercise or use under the circumstances in the conduct of
his own affairs. 

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

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

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

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

42 

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

     (c) the
Trustee shall not be liable with respect to any action taken or omitted to be
taken by it in good faith in accordance with the written direction of the
holders of not less than a majority in principal amount of the Securities at the time Outstanding determined as provided in
Article Fifteen 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;

     (d) whether
or not therein 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 Section;

     (e) the
Trustee shall not be liable in respect of any payment (as to the correctness of
amount, entitlement to receive or any other matters relating to payment) or
notice effected by the Company or any Paying Agent or any records maintained by
any co-registrar with respect to the Securities;

     (f) if any
party fails to deliver a notice relating to an event the fact of which, pursuant
to this Indenture, requires notice to be sent to the Trustee, the Trustee may
conclusively rely on its failure to receive such notice as reason to act as if
no such event occurred; and

     (g) the
Trustee shall not be deemed to have knowledge of any Event of Default hereunder
unless it shall have been notified in writing of such Event of Default by the
Company or the holders of at least 10% in aggregate principal amount of the
Securities. 

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

     SECTION
602. Reliance on Documents, Opinions, etc.
Except as otherwise provided in Section 601: 

     (a) the
Trustee may rely and shall be protected in acting upon any resolution,
certificate, statement, instrument, opinion, report, notice, request, consent,
order, bond, debenture, note, coupon or other paper or document (whether in its
original or facsimile form) believed by it in good faith to be genuine and to
have been signed or presented by the proper party or parties;

43 

     (b) 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 resolution of the Board of Directors may be
evidenced to the Trustee by a copy thereof certified by the Secretary or an
Assistant Secretary of the Company;

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

     (d) 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 of Securities pursuant to the provisions of this Indenture, unless such
Holders of Securities shall have offered to the Trustee reasonable security or
indemnity against the costs, expenses and liabilities which may be incurred
therein or thereby;

     (e) the
Trustee shall not be bound to make any investigation into the facts or matters
stated in any resolution, certificate, statement, instrument, opinion, report,
notice, request, direction, consent, order, bond, debenture or other paper or
document, but the Trustee, in its discretion, may make such further inquiry or
investigation into such facts or matters as it may see fit, and, if the Trustee
shall determine to make such further inquiry or investigation, it shall be
entitled to examine the books, records and premises of the Company, personally
or by agent or attorney; and 

     (f) the
Trustee may execute any of the trusts or powers hereunder or perform any duties
hereunder either directly or by or through agents or attorneys and the Trustee
shall not be responsible for any misconduct or negligence on the part of any
agent or attorney appointed by it with due care hereunder.

     SECTION
603. No Responsibility for Recitals, etc. The
recitals contained herein and in the Securities (except in the Trustee’s
certificate of authentication) shall be taken as the statements of the Company,
and the Trustee assumes no responsibility for the correctness of the same. The
Trustee makes no representations as to the validity or sufficiency of this
Indenture or of the Securities. The Trustee shall not be accountable for the use
or application by the Company of any Securities or the proceeds of any
Securities authenticated and delivered by the Trustee in conformity with the
provisions of this Indenture. 

     SECTION
604. Trustee, Paying Agents or Security Registrar May Own
Securities. The Trustee, any Paying Agent or
Security Registrar, in its individual or any other capacity, may become the
owner or pledgee of Securities with the same rights it would have if it were not
Trustee, Paying Agent or Security Registrar. 

     SECTION
605. Monies to Be Held in Trust. Subject to
the provisions of Article Four and Section 1602, all monies received by the
Trustee shall, until used or applied as herein provided, be held in trust for
the purposes for which they were received. Money held by the Trustee in trust
hereunder need not be segregated from other funds except to the extent required
by law. The Trustee shall be under no liability for interest on any money
received by it hereunder except as may be agreed in writing from time to time by
the Company and the Trustee.

44 

     Except as
otherwise provided in the Securities of any series, any money deposited with the
Trustee or any Paying Agent, or then held by the Company, in trust for the
payment of the principal of (or premium, if any) or interest, if any, on any
Security of any series and remaining unclaimed for two years after such
principal, premium or interest has become due and payable shall be paid to the
Company upon Company Request or (if then held by the Company) shall be
discharged from such trust; and the Holder of such Security shall thereafter, as
an unsecured general creditor, look only to the Company for payment of such
principal, premium or interest on any Security, without interest thereon, and
all liability of the Trustee or such Paying Agent with respect to such trust
money, and all liability of the Company as trustee thereof, shall thereupon
cease; provided, however, that the Trustee or such Paying Agent, before being required to make
any such repayment, may at the expense of the Company cause to be published
once, in an Authorized Newspaper, notice that such money remains unclaimed and
that, after a date specified therein, which shall not be less than 30 days from
the date of such publication, any unclaimed balance of such money then remaining
will be repaid to the Company. 

     SECTION
606. Compensation and Expenses of Trustee.
The Company covenants and agrees to pay to the Trustee from time to time, and
the Trustee shall be entitled to, reasonable compensation for all services
rendered by it hereunder in any capacity (which shall not be limited by any
provision of law in regard to the compensation of a trustee of an express trust)
as mutually agreed to from time to time in writing between the Company and the
Trustee, and the Company will pay or reimburse the Trustee upon its request for
all reasonable expenses, disbursements and advances reasonably incurred or made
by the Trustee in accordance with any of the provisions of this Indenture
(including the reasonable compensation and the expenses and disbursements of its
counsel and of all Persons not regularly in its employ) except any such expense,
disbursement or advance as may arise from its negligence, willful misconduct,
recklessness or bad faith. The Company also covenants to indemnify the Trustee
(or any officer, director or employee of the Trustee), in any capacity under
this Indenture and its agents and any Authenticating Agent for, and to hold them
harmless against, any and all loss, liability, claim or expense incurred without
negligence, willful misconduct, recklessness or bad faith on the part of the
Trustee or such officers, directors, employees and agent or Authenticating
Agent, as the case may be, and arising out of or in connection with the
acceptance or administration of this trust or in any other capacity hereunder,
including the costs and expenses of defending themselves against any claim of
liability in the premises. The obligations of the Company under this Section to
compensate or indemnify the Trustee and to pay or reimburse the Trustee for
expenses, disbursements and advances shall be
secured by a lien prior 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. The obligation of the Company
under this Section shall survive the satisfaction and discharge of this
Indenture.

     When the
Trustee and its agents and any Authenticating Agent incur expenses or render
services after an Event of Default specified in Section 501(5) or 501(6) with
respect to the Company occurs, the expenses and the compensation for the
services are intended to constitute expenses of administration under any
bankruptcy, insolvency or similar laws.

45 

     SECTION
607. Officers’ Certificate as Evidence.
Except as otherwise provided in Section 601, whenever in the administration of
the provisions of this Indenture the Trustee shall deem it necessary or
desirable that a matter be proved or established prior to taking or omitting any
action hereunder, such matter (unless other evidence in respect thereof be
herein specifically prescribed) may, in the absence of bad faith or willful
misconduct on the part of the Trustee, be deemed to be conclusively proved and
established by an Officers’ Certificate delivered to the Trustee. 

     SECTION
608. Conflicting Interests of Trustee. If the
Trustee has or shall acquire a conflicting interest within the meaning of the
Trust Indenture Act, the Trustee shall either eliminate such interest or resign,
to the extent and in the manner provided by, and subject to the provisions of,
the Trust Indenture Act and this Indenture. 

     SECTION
609. Eligibility of Trustee. There shall at
all times be a Trustee hereunder which shall be a Person that is eligible
pursuant to the Trust Indenture Act to act as such and has a combined capital
and surplus of at least $50,000,000 (or if such Person is a member of a bank
holding company system, its bank holding company shall have a combined capital
and surplus of at least $50,000,000). If such Person publishes reports of
condition at least annually, pursuant to law or to the requirements of any
supervising or examining authority, then for the purposes of this Section the
combined capital and surplus of such Person shall be deemed to be its combined
capital and surplus as set forth in its most recent report of condition so
published. If at any time the Trustee shall cease to be eligible in accordance
with the provisions of this Section, it shall resign immediately in the manner
and with the effect hereinafter specified in this Article. 

     SECTION
610. Resignation or Removal of Trustee. 

     (a) The
Trustee may at any time resign by giving written notice of such resignation to
the Company and to the holders of Securities. Upon receiving such notice of
resignation, the Company shall promptly appoint a successor trustee by written
instrument, in duplicate, executed by order of the Board of Directors, one copy
of which instrument shall be delivered to the resigning Trustee and one copy to
the successor trustee. If no successor trustee shall have been so appointed and
have accepted appointment sixty (60) days after the mailing of such notice of
resignation to the Holders of Securities, the resigning Trustee may, upon ten
(10) business days’ notice to the Company and the Holders of Securities, appoint
a successor identified in such notice or may petition, at the expense of the
Company, any court of competent jurisdiction for the appointment of a successor
trustee, or, if any Holder of Securities who has been a bona fide holder of a
Security or Securities for at least six (6) months may, subject to the
provisions of Section 515, on behalf of himself and all others similarly
situated, petition any such court for the appointment of a successor trustee.
Such court may thereupon, after such notice, if any, as it may deem proper and
prescribe, appoint a successor trustee. 

     (b) In case at any time any of the
following shall occur: 

     (i) the Trustee shall fail to comply with Section 608 after
written request therefor by the Company or by any Holder of Securities who has
been a bona fide holder of a Security or Securities for at least six (6) months;
or 

46 

     (ii) the Trustee shall cease to be eligible in accordance with
the provisions of Section 609 and shall fail to resign after written request
therefor by the Company or by any such Holder of Securities; or

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

then, in any such case, the Company may
remove the Trustee and appoint a successor trustee by written instrument, in
duplicate, executed by order of the Board of Directors, one copy of which
instrument shall be delivered to the Trustee so removed and one copy to the
successor trustee, or, subject to the provisions of Section 515, any Holder of
Securities who has been a bona fide holder of a Security or Securities for at
least six (6) months may, on behalf of himself and all others similarly
situated, petition any court of competent jurisdiction for the removal of the
Trustee and the appointment of a successor trustee; provided that if no
successor Trustee shall have been appointed and have accepted appointment sixty
(60) days after either the Company or the Holders of Securities has removed the
Trustee, the Trustee so removed may petition, at the expense of the Company, any
court of competent jurisdiction for an appointment of a successor trustee. Such
court may thereupon, after such notice, if any, as it may deem proper and
prescribe, remove the Trustee and appoint a successor trustee. 

     (c) The
holders of a majority in aggregate principal amount of the Securities at the
time outstanding may at any time remove the Trustee and nominate a successor
trustee which shall be deemed appointed as successor trustee unless, within ten
(10) days after notice to the Company of such nomination, the Company objects
thereto, in which case the Trustee so removed or any Holder of Securities, or if
such Trustee so removed or any Holder of Securities fails to act, the Company,
upon the terms and conditions and otherwise as in Section 610(a) provided, may
petition any court of competent jurisdiction for an appointment of a successor
trustee. 

     (d) Any
resignation or removal of the Trustee and appointment of a successor trustee
pursuant to any of the provisions of this Section 610 shall become effective
upon acceptance of appointment by the successor trustee as provided in Section
611. 

     SECTION
611. Acceptance by Successor Trustee. Any
successor trustee appointed as provided in Section 610 shall execute,
acknowledge and deliver to the Company and to its predecessor trustee an
instrument accepting such appointment hereunder, and thereupon the resignation
or removal of the predecessor trustee shall become effective and such successor
trustee, without any further act, deed or conveyance, shall become vested with
all the rights, powers, duties and obligations of its predecessor hereunder,
with like effect as if originally named as trustee herein; but, nevertheless, on
the written request of the Company or of the successor trustee, the trustee
ceasing to act shall, upon payment of any amount then due it pursuant to the
provisions of Section 606, execute and deliver an instrument transferring to
such successor trustee all the rights and powers of the trustee so ceasing to
act. Upon request of any such successor trustee, the Company shall execute any
and all instruments in writing for more fully and certainly vesting in and
confirming to such successor trustee all such rights and powers. Any trustee
ceasing to act shall, nevertheless, retain a lien upon all property and funds
held or collected by such trustee as such, except for funds held in trust for
the benefit of holders of particular Securities, to secure any amounts then due
it pursuant to the provisions of Section 606.

47 

     No successor
trustee shall accept appointment as provided in this Section 611 unless, at the
time of such acceptance, such successor trustee shall be qualified under the
provisions of Section 608 and be eligible under the provisions of Section 609.

     Upon
acceptance of appointment by a successor trustee as provided in this Section
611, the Company (or the former trustee, at the written direction of the
Company) shall mail or cause to be mailed notice of the succession of such
trustee hereunder to the holders of Securities at their addresses as they shall
appear on the Security Register. If the Company fails to mail such notice within
ten (10) days after acceptance of appointment by the successor trustee, the
successor trustee shall cause such notice to be mailed at the expense of the
Company. 

     SECTION
612. Succession by Merger, etc. Any
corporation into which the Trustee may be merged or converted or with which it
may be consolidated, or any corporation resulting from any merger, conversion or
consolidation to which the Trustee shall be a party, or any corporation
succeeding to all or substantially all of the corporate trust business of the
Trustee (including any trust created by this Indenture), shall be the successor
to the Trustee hereunder without the execution or filing of any paper or any
further act on the part of any of the parties hereto, provided that in the case
of any corporation succeeding to all or substantially all of the corporate trust
business of the Trustee, such corporation shall be qualified under the
provisions of Section 608 and eligible under the provisions of Section 609.

     In case at
the time such successor to the Trustee shall succeed to the trusts created by
this Indenture, any of the Securities shall have been authenticated but not
delivered, any such successor to the Trustee may adopt the certificate of
authentication of any predecessor trustee or Authenticating Agent appointed by
such predecessor trustee, and deliver such Securities so authenticated; and in
case at that time any of the Securities shall not have been authenticated, any
successor to the Trustee or any Authenticating Agent appointed by such successor
trustee may authenticate such Securities in the name of the successor trustee;
and in all such cases such certificates shall have the full force that is
provided in the Securities or in this Indenture; provided that the right to
adopt the certificate of authentication of any predecessor Trustee or
authenticate Securities in the name of any predecessor Trustee shall apply only
to its successor or successors by merger, conversion or consolidation.

     SECTION
613. Preferential Collection of Claims. If
and when the Trustee shall be or become a creditor of the Company (or any other
obligor upon the Securities), the Trustee shall be subject to the provisions of
the Trust Indenture Act regarding the collection of the claims against the
Company (or any such other obligor). 

48 

     SECTION
614. Trustee’s Application for Instructions from the Company. Any application by the Trustee for written instructions from
the Company (other than with regard to any action proposed to be taken or
omitted to be taken by the Trustee that affects the rights of the holders of the
Securities or holders of Senior Indebtedness under this Indenture, including,
without limitation, under Article Sixteen hereof) may, at the option of the
Trustee, set forth in writing any action proposed to be taken or omitted by the
Trustee under this Indenture and the date on and/or after which such action
shall be taken or such omission shall be effective. The Trustee shall not be
liable for any action taken by, or omission of, the Trustee in accordance with a
proposal included in such application on or after the date specified in such
application (which date shall not be less than three (3) Business Days after the
date any officer of the Company actually receives such application, unless any
such officer shall have consented in writing to any earlier date) unless prior
to taking any such action (or the effective date in the case of an omission),
the Trustee shall have received written instructions in response to such
application specifying the action to be taken or omitted. 

     SECTION
615. Appointment of Authenticating Agent. At
any time when any of the Securities remain Outstanding, the Trustee may appoint
an Authenticating Agent or Authenticating Agents with respect to one or more
series of Securities which shall be authorized to act on behalf of the Trustee
to authenticate Securities of such series issued upon exchange, registration of
transfer or partial redemption thereof, and Securities so authenticated shall be
entitled to the benefits of this Indenture and shall be valid and obligatory for
all purposes as if authenticated by the Trustee hereunder. Any such appointment
shall be evidenced by an instrument in writing signed by a Responsible Officer
of the Trustee, a copy of which instrument shall be promptly furnished to the
Company. Wherever reference is made in this Indenture to the authentication and
delivery of Securities by the Trustee or the Trustee’s certificate of
authentication, such reference shall be deemed to
include authentication and delivery on behalf of the Trustee by an
Authenticating Agent and a certificate of authentication executed on behalf of
the Trustee by an Authenticating Agent. Each Authenticating Agent shall be
acceptable to the Company and, except as may otherwise be provided pursuant to
Section 301, shall at all times be a bank or trust company or corporation
organized and doing business and in good standing under the laws of the United
States, authorized under such laws to act as Authenticating Agent, having a
combined capital and surplus of not less than $1,500,000 and subject to
supervision or examination by Federal or State authorities. If such
Authenticating Agent publishes reports of condition at least annually, pursuant
to law or the requirements of the aforesaid supervising or examining authority,
then for the purposes of this Section, the combined capital and surplus of such
Authenticating Agent shall be deemed to be its combined capital and surplus as
set forth in its most recent report of condition so published. In case at any
time an Authenticating Agent shall cease to be eligible in accordance with the
provisions of this Section, such Authenticating Agent shall resign immediately
in the manner and with the effect specified in this Section. 

     Any
corporation into which an Authenticating Agent may be merged or converted or
with which it may be consolidated, or any corporation resulting from any merger,
conversion or consolidation to which such Authenticating Agent shall be a party,
or any corporation succeeding to the corporate agency or corporate trust
business of an Authenticating Agent, shall continue to be an Authenticating
Agent, provided such corporation shall be otherwise eligible under this Section,
without the execution or filing of any paper or further act on the part of the
Trustee or the Authenticating Agent. 

49 

     An
Authenticating Agent for any series of Securities may at any time resign by
giving written notice of resignation to the Trustee for such series and to the
Company. The Trustee for any series of Securities may at any time terminate the
agency of an Authenticating Agent by giving written notice of termination to
such Authenticating Agent and to the Company. Upon receiving such a notice of
resignation or upon such a termination, or in case at any time such
Authenticating Agent shall cease to be eligible in accordance with the
provisions of this Section, the Trustee for such series may appoint a successor
Authenticating Agent which shall be acceptable to the Company and shall give
notice of such appointment to all Holders of Securities of the series with
respect to which such Authenticating Agent will serve in the manner set forth in
Section 106. Any successor Authenticating Agent upon acceptance of its
appointment hereunder shall become vested with all the rights, powers and duties
of its predecessor hereunder, with like effect as if originally named as an
Authenticating Agent herein. No successor Authenticating Agent shall be
appointed unless eligible under the provisions of this Section. 

     The Company
agrees to pay to each Authenticating Agent from time to time reasonable
compensation including reimbursement of its reasonable expenses for its services
under this Section. 

     If an
appointment of any Authenticating Agent with respect to one or more series is
made pursuant to this Section, the Securities of such series may have endorsed
thereon, in addition to or in lieu of the Trustee’s certificate of
authentication, an alternate certificate of authentication substantially in the
following form:

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

	THE
      BANK OF NEW YORK MELLON,  
		as
      Trustee  
		  
	By:  	   
		as
      Authenticating Agent  
		  
	By: 	  
		Authorized
      Officer  

ARTICLE SEVEN
HOLDERS’ LISTS AND REPORTS BY TRUSTEE AND COMPANY

     SECTION
701. Disclosure of Names and Addresses of Holders. Every Holder of Securities or coupons, by receiving and holding the
same, agrees with the Company and the Trustee that neither the Company nor the
Trustee nor any Authenticating Agent nor any Paying Agent nor any Security
Registrar shall be held accountable by reason of the disclosure of any
information as to the names and addresses of the Holders of Securities in
accordance with TIA Section 312, regardless of the source from which such
information was derived, and that the Trustee shall not be held accountable by
reason of mailing any material pursuant to a request made under TIA Section
312(b).

50 

     SECTION
702. Reports by Trustee. Within 60 days after
December 1 of each year commencing with the December 1 after the first issuance
of Securities pursuant to this Indenture, the Trustee shall transmit by mail to
all Holders of Securities as provided in TIA Section 313(c) a brief report dated
as of such December 1 if required by TIA 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, if any, upon which the Securities are
listed, with the Commission and with the Company. The Company will promptly
notify the Trustee of the listing of the Securities on any stock exchange.

     SECTION 703. Reports by
Company. The Company will: 

     (1) file
with the Trustee, within 15 days after the Company is required to file the same
with the Commission, copies of the annual reports and of the information,
documents, and other reports (or copies of such portions of any of the foregoing
as the Commission may from time to time by rules and regulations prescribe)
which the Company may be required to file with the Commission pursuant to
Section 13 or Section 15(d) of the Securities Exchange Act of 1934; or, if the
Company is not required to file information, documents or reports pursuant to
either of such Sections, then it will file with the Trustee and the Commission,
in accordance with rules and regulations prescribed from time to time by the
Commission, such of the supplementary and periodic information, documents and
reports which may be required pursuant to Section 13 of the Securities Exchange
Act of 1934 in respect of a security listed and registered on a national
securities exchange as may be prescribed from time to time in such rules and
regulations;

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

     (3) comply
with all other provisions of TIA Section 314(a).

     SECTION
704. Calculation of Original Issue Discount.
With respect to any Original Issue Discount Security issued pursuant to Section
301, if any, upon request of the Trustee, the Company shall file with the
Trustee promptly at the end of each calendar year a written notice specifying
the amount of original issue discount (including daily rates and accrual
periods), if any, accrued on Outstanding Securities as of the end of such year.

51 

ARTICLE EIGHT
CONSOLIDATION, MERGER, CONVEYANCE OR TRANSFER

     SECTION 801. Company May
Consolidate, etc., Only on Certain Terms. Subject to the provisions of Section 8.02, nothing contained in this
Indenture or in any of the Securities shall
prevent any consolidation or merger of the Company with or into any other Person
or Persons (whether or not affiliated with the Company), or successive
consolidations or mergers in which the Company or its successor or successors
shall be a party or parties, or shall prevent any sale, conveyance or lease (or
successive sales, conveyances or leases) of all or substantially all of the
property of the Company, to any other Person (whether or not affiliated with the
Company), authorized to acquire and operate the same and that shall be organized
under the laws of the United States; provided that upon any such consolidation,
merger, sale, conveyance or lease, the due and punctual payment of the principal
of and premium, if any, and interest on all of the Securities, according to
their tenor and the due and punctual performance and observance of all of the
covenants and conditions of this Indenture to be performed by the Company, shall
be expressly assumed, by supplemental indenture satisfactory in form to the
Trustee, executed and delivered to the Trustee by the Person (if other than the
Company) formed by such consolidation, or into which the Company shall have been
merged, or by the Person that shall have acquired or leased such property.

     SECTION
802. Successor Person Substituted. In case of
any such consolidation, merger, sale, conveyance or lease and upon the
assumption by the successor Person, by supplemental indenture, executed and
delivered to the Trustee and satisfactory in form to the Trustee, of the due and
punctual payment of the principal of and premium, if any, and interest on all of
the Securities and the due and punctual performance of all of the covenants and
conditions of this Indenture to be performed by the Company, such successor
Person shall succeed to and be substituted for the Company, with the same effect
as if it had been named herein as the party of this first part. Such successor
Person thereupon may cause to be signed, and may issue either in its own name or
in the name of Photronics, Inc. any or all of the Securities, issuable hereunder
that theretofore shall not have been signed by the Company and delivered to the
Trustee; and, upon the order of such successor Person instead of the Company and
subject to all the terms, conditions and limitations in this Indenture
prescribed, the Trustee shall authenticate and shall deliver, or cause to be
authenticated and delivered, any Security that previously shall have been signed
and delivered by the officers of the Company to the Trustee for authentication,
and any Security that such successor Person thereafter shall cause to be signed
and delivered to the Trustee for that purpose. All the Securities so issued
shall in all respects have the same legal rank and benefit under this Indenture
as the Securities theretofore or thereafter issued in accordance with the terms
of this Indenture as though all of such Securities had been issued at the date
of the execution hereof. In the event of any such consolidation, merger, sale,
conveyance or lease, the Person named as the “Company” in the first paragraph of
this Indenture or any successor that shall thereafter have become such in the
manner prescribed in this Article Eight may be dissolved, wound up and
liquidated at any time thereafter and such Person shall be released from its
liabilities as obligor and maker of the Securities and from its obligations
under this Indenture. 

     In case of
any such consolidation, merger, sale, conveyance or lease, such changes in
phraseology and form (but not in substance) may be made in the Securities
thereafter to be issued as may be appropriate. 

52 

     SECTION 803. Opinion of
Counsel to be Given to the Trustee. 

     The Trustee
shall receive an Officers’ Certificate and an Opinion of Counsel as conclusive
evidence that any such consolidation, merger, sale, conveyance or lease and any
such assumption complies with the provisions of this Article Eight. 

ARTICLE NINE
SUPPLEMENTAL INDENTURES 

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

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

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

     (3) to add any additional Events of Default for the benefit of
the Holders of all or any series of Securities (and if such Events of Default
are to be for the benefit of less than all series of Securities, stating that
such Events of Default are expressly being included solely for the benefit of
such series); provided, however, that in respect of any such additional Events of Default
such supplemental indenture may provide for a particular period of grace after
default (which period may be shorter or longer than that allowed in the case of
other defaults) or may provide for an immediate enforcement upon such default or
may limit the remedies available to the Trustee upon such default or may limit
the right of the Holders of a majority in aggregate principal amount of that or
those series of Securities to which such additional Events of Default apply to
waive such default; or

     (4) to add to or change any of the provisions of this
Indenture to provide that Bearer Securities may be registerable as to principal,
to change or eliminate any restrictions on the payment of principal of or any
premium or interest on Bearer Securities, to permit Bearer Securities to be
issued in exchange for Registered Securities, to permit Bearer Securities to be
issued in exchange for Bearer Securities of other authorized denominations or to
permit or facilitate the issuance of Securities in uncertificated form;
provided
that any such action shall not, as evidenced by an Opinion of Counsel delivered
to the Trustee, adversely affect the interests of the Holders of Securities of
any series or any related coupons in any material respect; or

     (5) to change or eliminate any of the provisions of this
Indenture; provided that any such change or elimination shall become effective only when
there is no Security Outstanding of any series created prior to the execution of
such supplemental indenture which is entitled to the benefit of such provision;
or

53

     (6) to establish the form or terms
of Securities of any series and any related coupons as permitted by Sections 201
and 301, including the provisions and procedures relating to Securities
convertible into or exchangeable for any securities of any Person (including the
Company); or

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

     (8) to cure any ambiguity, to correct or supplement any
provision herein which may be inconsistent with any other provision herein, or
to make any other provisions with respect to matters or questions arising under
this Indenture; provided that any such action shall not, as evidenced by an Opinion of
Counsel delivered to the Trustee, materially adversely affect the interests of
the Holders of Securities of any series or any related coupons in any material
respect; or

     (9) to supplement any of the provisions of this Indenture to
such extent as shall be necessary to permit or facilitate the defeasance and
discharge of any series of Securities pursuant to Sections 401, 1402 and 1403;
provided
that any such action shall not, as evidenced by an Opinion of Counsel delivered
to the Trustee, adversely affect the interests of the Holders of Securities of
such series and any related coupons or any other series of Securities in any
material respect. 

     SECTION
902. Supplemental Indentures with Consent of Holders. With the consent of the Holders of not less than a majority in principal
amount of all Outstanding Securities affected by such supplemental indenture, by Act of said Holders delivered to the Company
and the Trustee, the Company, when authorized by or pursuant to a Board
Resolution, and the Trustee may enter into an indenture or indentures
supplemental hereto for the purpose of adding any provisions to or changing in
any manner or eliminating any of the provisions of this Indenture or of
modifying in any manner the rights of the Holders of Securities and any related
coupons under this Indenture; provided, however, that no such supplemental
indenture shall, without the consent of the Holder of each Outstanding Security
affected thereby:

     (1) change the Stated Maturity of the principal of (or
premium, if any, on) or any installment of principal of or interest on, any
Security; or reduce the principal amount thereof or the rate of interest
thereon, or any premium payable upon the redemption thereof, or change any
obligation of the Company to pay Additional Amounts pursuant to Section 1011
(except as contemplated by Section 801(1) and permitted by Section 901(1)), or
reduce the portion of the principal of an Original Issue Discount Security or
Indexed Security that would be due and payable upon a declaration of
acceleration of the Maturity thereof pursuant to Section 502 or the amount
thereof provable in bankruptcy pursuant to Section 504, or adversely affect any
right of repayment at the option of the Holder of any Security, or change any
Place of Payment where, or the Currency in which, any Security or any premium or
interest thereon is payable, or impair the right to institute suit for the
enforcement of any such payment on or after the Stated Maturity thereof (or, in
the case of redemption or repayment at the option of the Holder, on or after the
Redemption Date or the Repayment Date, as the case may be), or adversely affect
any right to convert or exchange or require the Company to purchase any Security
as may be provided pursuant to Section 301 herein; or

54 

     (2) reduce the percentage in
principal amount of the Outstanding Securities of any series, the consent of
whose Holders is required for any such supplemental indenture, or the consent of
whose Holders is required for any waiver with respect to such series (of
compliance with certain provisions of this Indenture or certain defaults
hereunder and their consequences) provided for in this Indenture, or reduce the
requirements of Section 1504 for quorum or voting; or

     (3) modify any of the provisions of this Section, Section 513
or Section 1010, except to increase any such percentage or to provide that
certain other provisions of this Indenture cannot be modified or waived without
the consent of the Holder of each Outstanding Security affected thereby;
or

     (4) if Article Sixteen were applicable to the Securities as
specified pursuant to Section 301, modify any of the provisions of this
Indenture relating to the subordination of the Securities in a manner adverse to
the Holders. 

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

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

     The Company
may, but shall not be obligated to, fix a record date for the purpose of
determining the Persons entitled to consent to any indenture supplemental
hereto. If a record date is fixed, the Holders on such record date, or their
duly designated proxies, and only such Persons, shall be entitled to consent to
such supplemental indenture, whether or not such Holders remain Holders after
such record date; provided that unless such consent shall have become effective by
virtue of the requisite percentage having been obtained prior to the date which
is 90 days after such record date, any such consent previously given shall
automatically and without further action by any Holder be cancelled and of no
further effect. 

     SECTION
903. Execution of Supplemental Indentures. In
executing, or accepting the additional trusts created by, any supplemental
indenture permitted by this Article or the modification thereby of the trusts
created by this Indenture, the Trustee shall be entitled to receive, in addition
to any documents required by Section 102, and shall be fully protected in
relying upon, an Opinion of Counsel stating that the execution of such
supplemental indenture is authorized or permitted by this Indenture. The Trustee
may, but shall not be obligated to, enter into any such supplemental indenture
which affects the Trustee’s own rights, duties or immunities under this
Indenture or otherwise.

55 

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

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

     SECTION
906. Reference in Securities to Supplemental Indentures. Securities of any series authenticated and delivered after
the execution of any supplemental indenture pursuant to this Article may, and
shall, if required by the Trustee, bear a notation in form approved by the
Trustee as to any matter provided for in such supplemental indenture. If the
Company shall so determine, new Securities of any series so modified as to
conform, in the opinion of the Trustee and the Company, to any such supplemental
indenture may be prepared and executed by the Company and authenticated and
delivered by the Trustee in exchange for Outstanding Securities of such series.

     SECTION
907. Notice of Supplemental Indentures.
Promptly after the execution by the Company and the Trustee of any supplemental
indenture pursuant to the provisions of Section 902, the Company shall give
notice thereof to Holders of each Outstanding Security affected, in the manner
provided for in Section 1-6, setting forth in general terms the substance of
such supplemental indenture. 

     SECTION
908. Effect on Senior Indebtedness. No
supplemental indenture shall adversely affect the rights of any holder of Senior
Indebtedness under Article Sixteen without the consent of such holder.

ARTICLE TEN
COVENANTS 

     SECTION
1001. Payment of Principal, Premium and Interest. The Company covenants and agrees that it will duly and punctually pay or
cause to be paid the principal of and premium, if any, and interest, on each of
the Securities at the places, at the respective times and in the manner provided
herein and in the Securities. The Company covenants and agrees to pay interest
on overdue principal, premium, if any, or (to the extent that payment of such
interest is enforceable under applicable law) interest at the rate per annum
specified in the Securities. 

     SECTION
1002. Maintenance of Office or Agency. (a)
The Company will maintain an office or agency in the Borough of Manhattan, The
City of New York, where the Securities may be surrendered for registration of
transfer or exchange or for presentation for payment or for conversion or
redemption and where notices and demands to or upon the Company in respect of
the Securities and this Indenture may be served. The Company will give prompt
written notice to the Trustee of the location, and any change in the location,
of such office or agency not designated or appointed by the Trustee. If at any
time the Company shall fail to maintain any such required office or agency or
shall fail to furnish the Trustee with the address thereof, such presentations,
surrenders, notices and demands may be made or served at the Corporate Trust
Office or the office of agency of the Trustee in The Borough of Manhattan, The
City of New York (which shall initially be The Bank of New York Mellon, located
at One Wall Street, New York, New York 10286).

56 

     (b) The
Company may also from time to time designate co-registrars and one or more
offices or agencies where the Securities may be presented or surrendered for any
or all such purposes and may from time to time rescind such designations. The
Company will give prompt written notice of any such designation or rescission
and of any change in the location of any such other office or agency.

     (c) The
Company hereby initially designates the Trustee as Paying Agent, Security
Registrar and Custodian and each of the Corporate Trust Office and the office of
agency of the Trustee in the Borough of Manhattan, c/o The Bank of New York
Mellon, located at One Wall Street, New York, New York 10286, shall be
considered as one such office or agency of the Company for each of the aforesaid
purposes. 

     SECTION
1003. Appointments to Fill Vacancies in Trustee’s Office. The Company, whenever necessary to avoid or fill a vacancy in
the office of Trustee, will appoint, in the manner provided in this Indenture, a
Trustee, so that there shall at all times be a Trustee hereunder. 

     SECTION
1004. Provisions as to Paying Agent. If the
Company shall appoint a Paying Agent other than the Trustee, or if the Trustee
shall appoint such a Paying Agent, the Company will cause such Paying Agent to
execute and deliver to the Trustee an instrument in which such agent shall agree
with the Trustee, subject to the provisions of this Section:

     (i) that it will hold all sums held
by it as such agent for the payment of the principal of and premium, if any, or
interest on the Securities (whether such sums have been paid to it by the
Company or by any other obligor on the Securities) in trust for the benefit of
the Holders of the Securities;

     (ii) that it will give the Trustee notice of any failure by
the Company (or by any other obligor on the Securities) to make any payment of
the principal of and premium, if any, or interest on the Securities when the
same shall be due and payable; and

     (iii) that at any time during the continuance of an Event of
Default, upon request of the Trustee, it will forthwith pay to the Trustee all
sums so held in trust. 

     The Company
shall, on or before each due date of the principal of, premium, if any, or
interest on the Securities, deposit with the Paying Agent a sum (in funds which
are immediately available on the due date for such payment) sufficient to pay
such principal, premium, if any, or interest, and (unless such Paying Agent is
the Trustee) the Company will promptly notify the Trustee of any failure to take
such action; provided that if such deposit is made on the due date, such deposit
shall be received by the Paying Agent by 10:00 a.m. New York City time, on such
date.

57 

     (b) If the
Company shall act as its own Paying Agent, it will, on or before each due date
of the principal of, premium, if any, or interest on the Securities, set aside,
segregate and hold in trust for the benefit of the Holders of the Securities a
sum sufficient to pay such principal, premium, if any, or interest so becoming
due and will promptly notify the Trustee of any failure to take such action and
of any failure by the Company (or any other obligor under the Securities) to
make any payment of the principal of, premium, if any, or interest on the
Securities when the same shall become due and payable. 

     (c) Anything
in this Section to the contrary notwithstanding, the Company may, at any time,
for the purpose of obtaining a satisfaction and discharge of this Indenture, or
for any other reason, pay or cause to be paid to the Trustee all sums held in
trust by the Company or any Paying Agent hereunder as required by this Section,
such sums to be held by the Trustee upon the trusts herein contained and upon
such payment by the Company or any Paying Agent
to the Trustee, the Company or such Paying Agent shall be released from all
further liability with respect to such sums. 

     (d) Anything
in this Section to the contrary notwithstanding, the agreement to hold sums in
trust as provided in this Section is subject to the provisions of Article Four.

     The Trustee
shall not be responsible for the actions of any other Paying Agents (including
the Company if acting as its own Paying Agent) and shall have no control of any
funds held by such other Paying Agents. 

     SECTION
1005. Existence. Subject to Article Eight,
the Company will do or cause to be done all things necessary to preserve and
keep in full force and effect its existence and rights (charter and statutory);
provided that the Company shall not be required to preserve any such right if
the Company shall determine that the preservation thereof is no longer desirable
in the conduct of the business of the Company and that the loss thereof is not
disadvantageous in any material respect to the Holders of Securities.

     SECTION
1006. Maintenance of Properties. The Company
will cause all properties used or useful in the conduct of its business or the
business of any Significant Subsidiary to be maintained and kept in good
condition, repair and working order and supplied with all necessary equipment
and will cause to be made all necessary repairs, renewals, replacements,
betterments and improvements thereof, all as in the judgment of the Company may
be necessary so that the business carried on in connection therewith may be
properly and advantageously conducted at all times; provided that nothing in
this Section shall prevent the Company from discontinuing the operation or
maintenance of any of such properties if such discontinuance is, in the judgment
of the Company, desirable in the conduct of its business or the business of any
subsidiary and not disadvantageous in any material respect to the Holders of
Securities. 

58 

     SECTION 1007. Payment of Taxes and Other
Claims. The Company will pay or discharge, or
cause to be paid or discharged, before the same may become delinquent, (i) all
taxes, assessments and governmental charges levied or imposed upon the
Company or any Significant Subsidiary or upon the income, profits or property of
the Company or any Significant Subsidiary, (ii) all claims for labor, materials
and supplies which, if unpaid, might by law become a lien or charge upon the
property of the Company or any Significant Subsidiary and (iii) all stamp and
other duties, if any, which may be imposed by the United States or any political
subdivision thereof or therein in connection with the issuance, transfer,
exchange or conversion of any Securities or with respect to this Indenture;
provided that, in the case of clauses (i) and (ii), the Company shall not be
required to pay or discharge or cause to be paid or discharged any such tax,
assessment, charge or claim (A) if the failure to do so will not, in the
aggregate, have a material adverse impact on the Company, or (B) if the amount,
applicability or validity is being contested in good faith by appropriate
proceedings. 

     SECTION
1008. Stay, Extension and Usury Laws. The
Company covenants (to the extent that it may lawfully do so) that it shall not
at any time insist upon, plead, or in any manner whatsoever claim or take the
benefit or advantage of, any stay, extension or usury law or other law which
would prohibit or forgive the Company from paying all or any portion of the
principal of, premium, if any, or interest on the Securities as contemplated
herein, wherever enacted, now or at any time hereafter in force, or which may
affect the covenants or the performance of this Indenture and the Company (to
the extent it may lawfully do so) hereby expressly waives all benefit or
advantage of any such law, and covenants that it will not, by resort to any such
law, hinder, delay or impede the execution of any power herein granted to the
Trustee, but will suffer and permit the execution of every such power as though
no such law had been enacted. 

     SECTION
1009. Compliance Certificate. (a) The Company
shall deliver to the Trustee, within one hundred twenty (120) days after the end
of each fiscal year of the Company, a certificate signed by either the principal
executive officer, principal financial officer or principal accounting officer
of the Company, stating whether or not to the best knowledge of the signer
thereof the Company is in default in the performance and observance of any of
the terms, provisions and conditions of this Indenture (without regard to any
period of grace or requirement of notice provided hereunder) and, if the Company
shall be in default, specifying all such defaults
and the nature and the status thereof of which the signer may have
knowledge.

     (b) The
Company will deliver to the Trustee, forthwith upon becoming aware of (i) any
default in the performance or observance of any covenant, agreement or condition
contained in this Indenture, or (ii) any Event of Default, an Officers’
Certificate specifying with particularity such default or Event of Default and
further stating what action the Company has taken, is taking or proposes to take
with respect thereto. 

     (c) Any
notice required to be given under this Section or under Section 1610 shall be
delivered to a Responsible Officer of the Trustee at its Corporate Trust Office.
In the event that the payment of the Securities is accelerated because of an
Event of Default, the Company shall promptly provide written notice to the
Trustee specifying the names and addresses of the holders of Senior Indebtedness
if the Trustee (and not the Company) is to provide holders of Senior
Indebtedness notice of such acceleration. 

59 

     SECTION
1010. Waiver of Certain Covenants. The
Company may omit in any particular instance to comply with any term, provision
or condition as specified pursuant to Section 301(15) for Securities of any
series, in any covenants of the Company added to Article Ten pursuant to Section
301(14) or Section 301(15) in connection with Securities of a series, if before
or after the time for such compliance the Holders of at least a majority in
principal amount of all outstanding Securities, by Act of such Holders, waive
such compliance in such instance or generally waive compliance with such term,
provision or condition, but no such waiver shall extend to or affect such term,
provision or condition except to the extent so expressly waived, and, until such
waiver shall become effective, the obligations of the Company and the duties of
the Trustee in respect of any such term, provision or condition shall remain in
full force and effect. 

     SECTION
1011. Additional Amounts. If the Securities
of a series provide for the payment of Additional Amounts, the Company will pay
to the Holder of a Security of such series or any coupon appertaining thereto
Additional Amounts as may be specified as contemplated by Section 301. Whenever
in this Indenture there is mentioned, in any context, the payment of the
principal of (or premium, if any) or interest, if any, on any Security of any
series or payment of any related coupon or the net proceeds received on the sale
or exchange 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 pursuant to Section 301 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 provisions hereof shall not be construed as excluding
Additional Amounts in those provisions hereof where such express mention is not
made. 

     Except as
otherwise specified as contemplated by Section 301, 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 (or if
the Securities of that series will not bear interest prior to Maturity, the
first day on which a payment of principal and any premium is made), and at least
10 days prior to each date of payment of principal, premium or interest if there
has been any change with respect to the matters set forth in the below-mentioned
Officers’ Certificate, the Company will furnish the Trustee and the Company’s
principal Paying Agent or Paying Agents, if other than the Trustee, with an
Officers’ Certificate instructing the Trustee and such Paying Agent or Paying
Agents whether such payment of principal, premium or interest on the Securities
of that series shall be made to Holders of Securities of that series or any
related coupons who are not United States persons without withholding for or on
account of any tax, assessment or other governmental charge described in the
Securities of the series. If any such withholding shall be required, then such
Officers’ Certificate shall specify by country the amount, if any, required to
be withheld on such payments to such Holders of Securities of that series or
related coupons and the Company will pay to the Trustee or such Paying Agent the
Additional Amounts required by the terms of such Securities. In the event that
the Trustee or any Paying Agent, as the case may be, shall not so receive the
above-mentioned certificate, then the Trustee or such Paying Agent shall be
entitled (i) to assume that no such withholding or deduction is required with
respect to any payment of principal or interest with respect to any Securities
of a series or related coupons until it shall have received a certificate
advising otherwise and (ii) to make all payments of principal and interest with
respect to the Securities of a series or related coupons without withholding or
deductions until otherwise advised. 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 or in reliance on the Company’s not furnishing such an Officers’
Certificate.

60 

ARTICLE ELEVEN
REDEMPTION OF SECURITIES 

     SECTION
1101. Applicability of Article. Securities of
any series which are redeemable before their Stated Maturity shall be redeemable
in accordance with their terms and (except as otherwise specified as
contemplated by Section 301 for Securities of any series) in accordance with
this Article. 

     SECTION
1102. Election to Redeem; Notice to Trustee.
The election of the Company to redeem any Securities shall be evidenced by or
pursuant to a Board Resolution. In case of any redemption at the election of the
Company of less than all of the Securities of any series, the Company shall, at
least 60 days prior to the Redemption Date fixed by the Company (unless a
shorter notice shall be satisfactory to the Trustee), notify the Trustee in
writing of such Redemption Date and of the principal amount of Securities of
such series to be redeemed. In the case of any redemption of Securities prior to
the expiration of any restriction on such redemption provided in the terms of
such Securities or elsewhere in this Indenture, the Company shall furnish the
Trustee with an Officers’ Certificate evidencing compliance with such
restriction. 

     SECTION
1103. Selection by Trustee of Securities to Be Redeemed. If less than all the Securities of any series issued on the
same day with the same terms are to be redeemed, the particular Securities to be
redeemed shall be selected not more than 60 days prior to the Redemption Date by
the Trustee, from the Outstanding Securities of such series issued on such date
with the same terms not previously called for redemption, by such method as the
Trustee shall deem fair and appropriate and which may provide for the selection
for redemption of portions (equal to the minimum authorized denomination for
Securities of that series or any integral multiple thereof) of the principal
amount of Securities of such series of a denomination larger than the minimum
authorized denomination for Securities of that series. 

     The Trustee
shall promptly notify the Company and the Security Registrar (if other than
itself) in writing of the Securities selected for redemption and, in the case of
any Securities selected for partial redemption, the principal amount thereof to
be redeemed. 

     For all
purposes of this Indenture, unless the context otherwise requires, all
provisions relating to the redemption of 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
1104. Notice of Redemption. Notice of
redemption shall be given in the manner provided in Section 106, not less than
30 days nor more than 60 days prior to the Redemption Date, unless a shorter
period is specified by the terms of such series established pursuant to Section
301, to each Holder of Securities to be redeemed, but failure to give such
notice in the manner herein provided to the Holder of any Security designated
for redemption as a whole or in part, or any defect in the notice to any such
Holder, shall not affect the validity of the proceedings for the redemption of
any other such Security or portion thereof.

61 

     Any notice
that is mailed to the Holders of Registered Securities in the manner herein
provided shall be conclusively presumed to have been duly given, whether or not
the Holder receives the notice. 

     All notices
of redemption shall state:

     (1) the Redemption Date, 

     (2) the Redemption Price and accrued interest, if any, to the
Redemption Date payable as provided in Section 1106,

     (3) if less than all Outstanding Securities of any series are
to be redeemed, the identification (and, in the case of partial redemption, the
principal amount) of the particular Security or Securities to be
redeemed,

     (4) in case any Security is to be redeemed in part only, the
notice which relates to such Security shall state that on and after the
Redemption Date, upon surrender of such Security, the Holder will receive,
without a charge, a new Security or Securities of authorized denominations for
the principal amount thereof remaining unredeemed,

     (5) that on the Redemption Date, the Redemption Price and
accrued interest, if any, to the Redemption Date payable as provided in Section
1106 will become due and payable upon each such Security, or the portion
thereof, to be redeemed and, if applicable, that interest thereon shall cease to
accrue on and after said date,

     (6) the Place or Places of Payment where such Securities,
together in the case of Bearer Securities with all coupons appertaining thereto,
if any, maturing after the Redemption Date, are to be surrendered for payment of
the Redemption Price and accrued interest, if any,

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

     (8) that, unless otherwise specified in such notice, Bearer
Securities of any series, if any, surrendered for redemption must be accompanied
by all coupons maturing subsequent to the date fixed for redemption or the
amount of any such missing coupon or coupons will be deducted from the
Redemption Price, unless security or indemnity satisfactory to the Company, the
Trustee for such series and any Paying Agent is furnished,

     (9) if Bearer Securities of any series are to be redeemed and
any Registered Securities of such series are not to be redeemed, and if such
Bearer Securities may be exchanged for Registered Securities not subject to
redemption on this Redemption Date pursuant to Section 305 or otherwise, the
last date, as determined by the Company, on which such exchanges may be made,
and 

     (10) the CUSIP number of such Security, if any. 

62 

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

     SECTION
1105. Deposit of Redemption Price. On or
prior to 10:00 a.m., New York City time, on any Redemption Date, the Company
shall deposit with the Trustee or with a Paying Agent (or, if the Company is
acting as its own Paying Agent, which it may not do in the case of a sinking
fund payment under Article Twelve, segregate and hold in trust as provided in
Section 605) an amount of money in the Currency in which the Securities of such
series are payable (except as otherwise specified pursuant to Section 301 for
the Securities of such series and except, if applicable, as provided in Sections
312(b), 312(d) and 312(e)) sufficient to pay on the Redemption Date the
Redemption Price of, and (except if the Redemption Date shall be an Interest
Payment Date) accrued interest on, all the Securities or portions thereof which
are to be redeemed on that date. 

     SECTION
1106. Securities Payable on Redemption Date.
Notice of redemption having been given as aforesaid, the Securities so to be
redeemed shall, on the Redemption Date, become due and payable at the Redemption
Price therein specified in the Currency in which the Securities of such series
are payable (except as otherwise specified pursuant to Section 301 for the
Securities of such series and except, if applicable, as provided in Sections
312(b), 312(d) and 312(e)) (together with accrued interest, if any, to the
Redemption Date), and from and after such date (unless the Company shall default
in the payment of the Redemption Price and accrued interest, if any) such
Securities shall if the same were interest-bearing cease to bear interest and
the coupons for such interest appertaining to any Bearer Securities so to be
redeemed, except to the extent provided below, shall be void. Upon surrender of
any such Security for redemption in accordance with said notice, together with
all coupons, if any, appertaining thereto maturing after the Redemption Date,
such Security shall be paid by the Company at the Redemption Price, together
with accrued interest, if any, to the Redemption Date; provided, however, that installments
of interest on Bearer Securities whose Stated Maturity is on or prior to the
Redemption Date shall be payable only at an office or agency located outside the
United States (except as otherwise provided in Section 1002) and, unless
otherwise specified as contemplated by Section 301, only upon presentation and
surrender of coupons for such interest, and provided further that installments of interest
on Registered Securities whose Stated Maturity is on or prior to the Redemption
Date shall be payable to the Holders of such Securities, or one or more
Predecessor Securities, registered as such at the close of business on the
relevant Record Dates according to their terms and the provisions of Section
307. 

     If any
Bearer Security surrendered for redemption shall not be accompanied by all
appurtenant coupons maturing after the Redemption Date, such Security may be
paid after deducting from the Redemption Price an amount equal to the face
amount of all such missing coupons, or the surrender of such missing coupon or
coupons may be waived by the Company and the Trustee if there be furnished to
them such security or indemnity as they may require to save each of them and any
Paying Agent harmless. If thereafter the Holder of such Security shall surrender
to the Trustee or any Paying Agent any such missing coupon in respect of which a
deduction shall have been made from the Redemption Price, such Holder shall be
entitled to receive the amount so deducted; provided, however, that interest represented by
coupons shall be payable only at an office or agency located outside the United
States (except as otherwise provided in Section 1002) and, unless otherwise
specified as contemplated by Section 301, only upon presentation and surrender
of those coupons.

63  

     If any
Security called for redemption shall not be so paid upon surrender thereof for
redemption, the Redemption Price shall, until paid, bear interest from the
Redemption Date at the rate of interest set forth in such Security or, in the
case of an Original Issue Discount Security, at the Yield to Maturity of such
Security. 

     SECTION
1107. Securities Redeemed in Part. Any
Registered Security which is to be redeemed only in part (pursuant to the
provisions of this Article or of Article Twelve) shall be surrendered at a Place
of Payment therefore (with, if the Company or the Trustee so requires, due
endorsement by, or a written instrument of transfer in form satisfactory to the
Company and the Trustee duly executed by, the Holder thereof or his attorney
duly authorized in writing) and the Company shall execute and the Trustee shall
authenticate and deliver to the Holder of such Security without service charge a
new Security or Securities of the same series, of any authorized denomination as
requested by such Holder in aggregate principal amount equal to and in exchange
for the unredeemed portion of the principal of the Security so surrendered.
However, if less than all the Securities of any series with differing issue
dates, interest rates and stated maturities are to be redeemed, the Company in
its sole discretion shall select the particular Securities to be redeemed and
shall notify the Trustee in writing thereof at least 45 days prior to the
relevant redemption date. 

ARTICLE TWELVE
SINKING FUNDS 

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

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

     SECTION
1202. Satisfaction of Sinking Fund Payments with Securities. The Company may, in satisfaction of all or any part of any
mandatory sinking fund payment with respect to the Securities of a series, (1)
deliver Outstanding Securities of such series (other than any previously called
for redemption) together in the case of any Bearer Securities of such series
with all unmatured coupons appertaining thereto and (2) apply as a credit
Securities of such series which have been redeemed either at the election of the
Company pursuant to the terms of such Securities or through the application of
permitted optional sinking fund payments pursuant to the terms of such
Securities, as provided for by the terms of such Securities; provided that such Securities so
delivered or applied as a credit have not been previously so credited. Such
Securities shall be received and credited for such purpose by the Trustee at the
applicable Redemption Price specified in such Securities for redemption through
operation of the sinking fund and the amount of such mandatory sinking fund
payment shall be reduced accordingly.

64 

     SECTION
1203. Redemption of Securities for Sinking Fund. Not less than 60 days prior to each sinking fund payment date for
Securities of any series, the Company will deliver to the Trustee an Officers’
Certificate specifying the amount of the next ensuing mandatory sinking fund
payment for that series pursuant to the terms of that series, the portion
thereof, if any, which is to be satisfied by payment of cash in the Currency in
which the Securities of such series are payable (except as otherwise specified
pursuant to Section 301 for the Securities of such series and except, if
applicable, as provided in Sections 312(b), 312(d) and 312(e)) and the portion
thereof, if any, which is to be satisfied by delivering and crediting Securities
of that series pursuant to Section 1202, and the optional amount, if any, to be
added in cash to the next ensuing mandatory sinking fund payment, and will also
deliver to the Trustee any Securities to be so delivered and credited. If such
Officers’ Certificate shall specify an optional amount to be added in cash to
the next ensuing mandatory sinking fund payment, the Company shall thereupon be
obligated to pay the amount therein specified. Not less than 30 days before each
such sinking fund payment date the Trustee shall select the Securities to be
redeemed upon such sinking fund payment date in the manner specified in Section
1103 and cause notice of the redemption thereof to be given in the name of and
at the expense of the Company in the manner provided in Section 1104. Such
notice having been duly given, the redemption of such Securities shall be made
upon the terms and in the manner stated in Sections 1106 and 1107. 

ARTICLE THIRTEEN

REPAYMENT AT THE OPTION OF HOLDERS

     SECTION
1301. Applicability of Article. Repayment of
Securities of any series before their Stated Maturity at the option of Holders
thereof shall be made in accordance with the terms of such Securities and
(except as otherwise specified by the terms of such series established pursuant
to Section 301) in accordance with this Article. 

     SECTION
1302. Repayment of Securities. Securities of
any series subject to repayment in whole or in part at the option of the Holders
thereof will, unless otherwise provided in the terms of such Securities, be
repaid at the Repayment Price thereof, together with interest, if any, thereon
accrued to the Repayment Date specified in or pursuant to the terms of such
Securities. The Company covenants that on or before the Repayment Date it will
deposit with the Trustee or with a Paying Agent (or, if the Company is acting as
its own Paying Agent, segregate and hold in trust as provided in Section 605) an
amount of money in the Currency in which the Securities of such series are
payable (except as otherwise specified pursuant to Section 301 for the
Securities of such series and except, if applicable, as provided in Sections
312(b), 312(d) and 312(e)) sufficient to pay the Repayment Price of, and (except
if the Repayment Date shall be an Interest Payment Date) accrued interest on,
all the Securities or portions thereof, as the case may be, to be repaid on such
date. 

65 

     SECTION
1303. Exercise of Option. Securities of any
series subject to repayment at the option of the Holders thereof will contain an
“Option to Elect Repayment” form on the reverse of such Securities. To be repaid at the
option of the Holder, any Security so providing for such repayment, with the
“Option to
Elect Repayment” form on the reverse of such Security duly completed by the Holder (or
by the Holder’s attorney duly authorized in writing), must be received by the
Company at the Place of Payment therefore specified in the terms of such
Security (or at such other place or places of which the Company shall from time
to time notify the Holders of such Securities) not earlier than 45 days nor
later than 30 days prior to the Repayment Date. If less than the entire
Repayment Price of such Security is to be repaid in accordance with the terms of
such Security, the portion of the Repayment Price of such Security to be repaid,
in increments of the minimum denomination for Securities of such series, and the
denomination or denominations of the Security or Securities to be issued to the
Holder for the portion of such Security surrendered that is not to be repaid,
must be specified. Any Security providing for repayment at the option of the
Holder thereof may not be repaid in part if, following such repayment, the
unpaid principal amount of such Security would be less than the minimum
authorized denomination of Securities of the series of which such Security to be
repaid is a part. Except as otherwise may be provided by the terms of any
Security providing for repayment at the option of the Holder thereof, exercise
of the repayment option by the Holder shall be irrevocable unless waived by the
Company. 

     SECTION
1304. When Securities Presented for Repayment Become Due and
Payable. If Securities of any series
providing for repayment at the option of the Holders thereof shall have been
surrendered as provided in this Article and as provided by or pursuant to the
terms of such Securities, such Securities or the portions thereof, as the case
may be, to be repaid shall become due and payable and shall be paid by the
Company on the Repayment Date therein specified, and on and after such Repayment
Date (unless the Company shall default in the payment of such Securities on such
Repayment Date) such Securities shall, if the same were interest-bearing, cease
to bear interest and the coupons for such interest appertaining to any Bearer
Securities so to be repaid, except to the extent provided below, shall be void.
Upon surrender of any such Security for repayment in accordance with such
provisions, together with all coupons, if any, appertaining thereto maturing
after the Repayment Date, the Repayment Price of such Security so to be repaid
shall be paid by the Company, together with accrued interest, if any, to the
Repayment Date; provided, however, that coupons whose Stated Maturity is on or prior to the
Repayment Date shall be payable only at an office or agency located outside the
United States (except as otherwise provided in Section 1002) and, unless
otherwise specified pursuant to Section 301, only upon presentation and
surrender of such coupons; and provided further that, in the case of
Registered Securities, installments of interest, if any, whose Stated Maturity
is on or prior to the Repayment Date shall be payable (but without interest
thereon, unless the Company shall default in the payment thereof) to the Holders
of such Securities, or one or more Predecessor Securities, registered as such at
the close of business on the relevant Record Dates according to their terms and
the provisions of Section 307. 

     If any
Bearer Security surrendered for repayment shall not be accompanied by all
appurtenant coupons maturing after the Repayment Date, such Security may be paid
after deducting from the amount payable therefore as provided in Section 1302 an
amount equal to the face amount of all such missing coupons, or the surrender of
such missing coupon or coupons may be waived by the Company and the Trustee if
there be furnished to them such security or indemnity as they may require to
save each of them and any Paying Agent harmless. If thereafter the Holder of
such Security shall surrender to the Trustee or any Paying Agent any such
missing coupon in respect of which a deduction shall have been made as provided
in the preceding sentence, such Holder shall be entitled to receive the amount
so deducted; provided, however, that interest represented by
coupons shall be payable only at an office or agency located outside the United
States (except as otherwise provided in Section 1002) and, unless otherwise
specified as contemplated by Section 301, only upon presentation and surrender
of those coupons.

66 

     If any
Security surrendered for repayment shall not be so repaid upon surrender
thereof, the Repayment Price shall, until paid, bear interest from the Repayment
Date at the rate of interest set forth in such Security or, in the case of an
Original Issue Discount Security, at the Yield to Maturity of such Security.

     SECTION
1305. Securities Repaid in Part. Upon
surrender of any Registered Security which is to be repaid in part only, the
Company shall execute and the Trustee shall authenticate and deliver to the
Holder of such Security, without service charge and at the expense of the
Company, a new Registered Security or Securities of the same series, of any
authorized denomination specified by the Holder, in an aggregate principal
amount equal to and in exchange for the portion of the principal of such
Security so surrendered which is not to be repaid. 

ARTICLE FOURTEEN

DEFEASANCE AND COVENANT DEFEASANCE

     SECTION
1401. Applicability of Article; Company’s Option to Effect Defeasance or
Covenant Defeasance. If pursuant to Section
301 provision is made for either or both of (a) defeasance of the Securities of
a series under Section 1402 or (b) covenant defeasance of the Securities of a
series under Section 1403, then the provisions of such Section or Sections, as
the case may be, together with the other provisions of this Article (with such
modifications thereto as may be specified pursuant to Section 301 with respect
to any Securities), shall be applicable to such Securities and any coupons
appertaining thereto, and the Company may at its option by Board Resolution, at
any time, with respect to such Securities and any coupons appertaining thereto,
elect to have Section 1402 (if applicable) or Section 1403 (if applicable) be
applied to such Outstanding Securities and any coupons appertaining thereto upon
compliance with the conditions set forth below in this Article. 

     SECTION
1402. Defeasance and Discharge. Upon the
Company’s exercise of the above option applicable to this Section with respect
to any Securities of a series, the Company shall be deemed to have been
discharged from its obligations with respect to such Outstanding Securities and
any coupons appertaining thereto on the date the conditions set forth in Section
1404 are satisfied (hereinafter, “defeasance”). For this purpose, such
defeasance means that the Company shall be deemed to have paid and discharged
the entire indebtedness represented by such Outstanding Securities and any
coupons appertaining thereto, which shall thereafter be deemed to be
“Outstanding” only for the purposes of Section 1405 and the other Sections of
this Indenture referred to in clauses (A) and (B) of this Section, and to have
satisfied all its other obligations under such Securities and any coupons
appertaining thereto and this Indenture insofar as such Securities and any
coupons appertaining thereto are concerned (and the Trustee, at the expense of
the Company, shall execute proper instruments acknowledging the same), except
for the following which shall survive until otherwise terminated or discharged
hereunder: (A) the rights of Holders of such Outstanding Securities and any
coupons appertaining thereto to receive, solely from the trust fund described in
Section 1404 and as more fully set forth in such Section, payments in respect of
the principal of (and premium, if any) and interest, if any, on such Securities
and any coupons appertaining thereto when such payments are due, (B) the
Company’s obligations with respect to such Securities under Sections 305, 306,
605 and 1002 and with respect to the payment of Additional Amounts, if any, on
such Securities as contemplated by Section 1011, (C) the rights, powers, trusts,
duties and immunities of the Trustee hereunder and (D) this Article. Subject to
compliance with this Article Fourteen, the Company may exercise its option under
this Section notwithstanding the prior exercise of its option under Section 1403
with respect to such Securities and any coupons appertaining thereto. Money and
securities held in trust pursuant to Section 1402 shall not be subject to
Article Sixteen.

67 

     SECTION
1403. Covenant Defeasance. Upon the Company’s
exercise of the above option applicable to this Section, the Company shall be
released from its obligations under any covenant specified with respect to any
Outstanding Securities of any series of Securities established pursuant to
Section 301 and any coupons appertaining to any such Securities, on and after
the date the conditions set forth in Section 1404 are satisfied (hereinafter,
“covenant defeasance”), and such Securities and any coupons appertaining thereto
shall thereafter be deemed to be not “Outstanding” for the purposes of any
direction, waiver, consent or declaration or Act of Holders (and the
consequences of any thereof) in connection with any such covenant, but shall
continue to be deemed “Outstanding” for all other purposes hereunder. For this
purpose, such covenant defeasance means that, with respect to such Outstanding
Securities and any coupons appertaining thereto, the Company may omit to comply
with and shall have no liability in respect of any term, condition or limitation
set forth in any such Section or such other covenant, whether directly or
indirectly, by reason of any reference elsewhere herein to any such Section or
such other covenant or by reason of reference in any such Section or such other
covenant to any other provision herein or in any other document and such
omission to comply shall not constitute a Default or an Event of Default under
Section 501(4) or 501(7) or otherwise, as the case may be, but, except as
specified above, the remainder of this Indenture and such Securities and any
coupons appertaining thereto shall be unaffected thereby. 

     SECTION
1404. Conditions to Defeasance or Covenant Defeasance. The following shall be the conditions to application of
Section 1402 or Section 1403 to any Outstanding Securities of a series and any
coupons appertaining thereto:

     (a) The Company shall irrevocably
have deposited or caused to be deposited with the Trustee (or another trustee
satisfying the requirements of Section 609 who shall agree to comply with the
provisions of this Article Fourteen applicable to it) as trust funds in trust
for the purpose of making the following payments, specifically pledged as
security for, and dedicated solely to, the benefit of the Holders of such
Securities and any coupons appertaining thereto, (1) an amount (in such Currency
in which such Securities and any coupons appertaining thereto are then specified
as payable at Stated Maturity), or (2) Government Obligations applicable to such
Securities and coupons appertaining thereto (determined on the basis of the
Currency in which such Securities and coupons appertaining thereto are then
specified as payable at Stated Maturity) which through the scheduled payment of
principal and interest in respect thereof in accordance with their terms will
provide, not later than one day before the due date of any payment of principal
of (and premium, if any) and interest, if any, on such Securities and any
coupons appertaining thereto, money in an amount, or (3) a combination thereof
in an amount, sufficient, in the opinion of a nationally recognized firm of
independent public accountants expressed in a written certification thereof
delivered to the Trustee, to pay and discharge, and which shall be applied by
the Trustee (or other qualifying trustee) to pay and discharge, (i) the
principal of (and premium, if any) and interest, if any, on such Outstanding
Securities and any coupons appertaining thereto on the Stated Maturity of such
principal or installment of principal or interest and (ii) any mandatory sinking
fund payments or analogous payments applicable to such Outstanding Securities
and any coupons appertaining thereto on the day on which such payments are due
and payable in accordance with the terms of this Indenture and of such
Securities and any coupons appertaining thereto.

68  

     (b) Such defeasance or covenant defeasance shall not result in
a breach or violation of, or constitute a default under, this Indenture or any
other material agreement or instrument to which the Company is a party or by
which it is bound. 

     (c) No Default or Event of Default with respect to such
Securities and any coupons appertaining thereto shall have occurred and be
continuing on the date of such deposit or, insofar as Sections 501(5) and 501(6)
are concerned, at any time during the period ending on the 91st day after the
date of such deposit (it being understood that this condition shall not be
deemed satisfied until the expiration of such period). 

     (d) In the case of an election under Section 1402, the Company
shall have delivered to the Trustee an Opinion of Counsel stating that (i) the
Company has received from, or there has been published by, the Internal Revenue
Service a ruling, or (ii) since the date of execution of this Indenture, there
has been a change in the applicable Federal income tax law, in either case to
the effect that, and based thereon such opinion shall confirm that, the Holders
of such Outstanding Securities and any coupons appertaining thereto will not
recognize income, gain or loss for Federal income tax purposes as a result of
such defeasance and will be subject to Federal income tax on the same amounts,
in the same manner and at the same times as would have been the case if such
defeasance had not occurred. 

     (e) In the case of an election under Section 1403, the Company
shall have delivered to the Trustee an Opinion of Counsel to the effect that the
Holders of such Outstanding Securities and any coupons appertaining thereto will
not recognize income, gain or loss for Federal income tax purposes as a result
of such covenant defeasance and will be subject to Federal income tax on the
same amounts, in the same manner and at the same times as would have been the
case if such covenant defeasance had not occurred. 

     (f) 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 Section 1402 or the covenant
defeasance under Section 1403 (as the case may be) have been complied with and
an Opinion of Counsel to the effect that either (i) as a result of a deposit
pursuant to subsection (a) above and the related exercise of the Company’s
option under Section 1402 or Section 1403 (as the case may be), registration is
not required under the Investment Company Act of 1940, as amended, by the
Company, with respect to the trust funds representing such deposit or by the
trustee for such trust funds or (ii) all necessary registrations under said Act
have been effected. 

     (g) Notwithstanding any other provisions of this Section, such
defeasance or covenant defeasance shall be effected in compliance with any
additional or substitute terms, conditions or limitations which may be imposed
on the Company in connection therewith pursuant to Section 301. 

69 

     SECTION
1405. Deposited Money and Government Obligations to Be Held in Trust; Other
Miscellaneous Provisions. Subject to the
provisions of the second paragraph of Section 605, all money and Government
Obligations (or other property as may be provided pursuant to Section 301)
(including the proceeds thereof) deposited with the Trustee (or other qualifying
trustee, collectively for purposes of this Section 1405, the “Trustee”) pursuant
to Section 1404 in respect of any Outstanding Securities of any series and any
coupons appertaining thereto shall be held in trust and applied by the Trustee,
in accordance with the provisions of such Securities and any coupons
appertaining thereto and this Indenture, to the payment, either directly or
through any Paying Agent (including the Company acting as its own Paying Agent)
as the Trustee may determine, to the Holders of such Securities and any coupons
appertaining thereto of all sums due and to become due thereon in respect of
principal (and premium, if any) and interest, if any, but such money need not be
segregated from other funds except to the extent required by law. 

     Unless
otherwise specified with respect to any Security pursuant to Section 301, if,
after a deposit referred to in Section 1404(a) has been made, (a) the Holder of
a Security in respect of which such deposit was made is entitled to, and does,
elect pursuant to Section 312(b) or the terms of such Security to receive
payment in a Currency other than that in which the deposit pursuant to Section
1404(a) has been made in respect of such Security, or (b) a Conversion Event
occurs as contemplated in Section 312(d) or 312(e) or by the terms of any
Security in respect of which the deposit pursuant to Section 1404(a) has been
made, the indebtedness represented by such Security and any coupons appertaining
thereto shall be deemed to have been, and will be, fully discharged and
satisfied through the payment of the principal of (and premium, if any) and
interest, if any, on such Security as the same becomes due out of the proceeds
yielded by converting (from time to time as specified below in the case of any
such election) the amount or other property deposited in respect of such
Security into the Currency in which such Security becomes payable as
a result of such election or Conversion Event
based on the applicable Market Exchange Rate for such Currency in effect on the
second Business Day prior to each payment date, except, with respect to a
Conversion Event, for such Currency in effect (as nearly as feasible) at the
time of the Conversion Event. 

     The Company
shall pay and indemnify the Trustee against any tax, fee or other charge imposed
on or assessed against the Government Obligations deposited pursuant to Section
1404 or the principal and interest received in respect thereof other than any
such tax, fee or other charge which by law is for the account of the Holders of
such Outstanding Securities and any coupons appertaining thereto.

70 

     Anything in
this Article to the contrary notwithstanding, the Trustee shall deliver or pay
to the Company from time to time upon Company Request any money or Government
Obligations (or other property and any proceeds therefrom) held by it as
provided in Section 1404 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 defeasance or covenant defeasance, as
applicable, in accordance with this Article. 

     SECTION
1406. Reinstatement. (a) If the Trustee or
Paying Agent is unable to apply any money or Government Obligations in
accordance with Section 1405 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 of the applicable series issued
hereunder shall be revived and reinstated as though no deposit has occurred
pursuant to this Article Fourteen until such time as the Trustee or Paying Agent
is permitted to apply all such money or Government Obligations in accordance
with Section 1405. 

     (b) If the
Company’s obligations under this Indenture and the Securities of the applicable
series issued hereunder shall be revived and reinstated in accordance with this
Section 1406, the Company shall be permitted, at its discretion to withdraw all
or a portion of the deposits made by the Company pursuant to this Article
Fourteen. 

     (c) If the
Company elects not to withdraw any of the deposits made by the Company pursuant
to this Article Fourteen, if and when the Trustee or Paying Agent is later
permitted to apply all such money or Government Obligations in accordance with
Section 1405, the rights of the Company shall be subrogated to the rights of the
Holders of the Securities of the applicable series to receive payments from the
money or Government Obligations deposited by the Company pursuant to Article
Fourteen and held by the Trustee or Paying Agent; provided that if the Company shall
have made any payment of principal or interest on the Securities of any series
because of the revival and reinstatement of its obligations, which payment is
not sourced from any amounts deposited by the Company pursuant to Article
Fourteen (such amount, in the aggregate, being referred to as the
“Company Paid Amount”), the Company shall be permitted, at its discretion, to
withdraw all or a portion of the deposits made by the Company pursuant to this
Article Fourteen up to the Company Paid Amount. 

ARTICLE FIFTEEN

MEETINGS OF HOLDERS OF SECURITIES

     SECTION
1501. Purposes for Which Meetings May Be Called. If Securities of a series are issuable as Bearer Securities, a meeting
of Holders of Securities of such series may be called at any time and from time
to time pursuant to this Article to make, give or take any request, demand,
authorization, direction, notice, consent, waiver or other action provided by
this Indenture to be made, given or taken by Holders of Securities of such
series. 

71 

     SECTION
1502. Call, Notice and Place of Meetings. (a)
The Trustee may at any time call a meeting of Holders of Securities of any
series for any purpose specified in Section 1501, to be held at such
time and at such place in the Borough of
Manhattan, The City of New York, as the Trustee shall determine. Notice of every
meeting of Holders of Securities of any series, setting forth the time and the
place of such meeting and in general terms the action proposed to be taken at
such meeting, shall be given, in the manner provided in Section 106, not less
than 21 nor more than 180 days prior to the date fixed for the meeting.

     (b) In case
at any time the Company, pursuant to a Board Resolution, or the Holders of at
least 10% in principal amount of the Outstanding Securities of any series shall
have requested the Trustee to call a meeting of the Holders of Securities of
such series for any purpose specified in Section 1501, by written request
setting forth in reasonable detail the action proposed to be taken at the
meeting, and the Trustee shall not have made the first publication of the notice
of such meeting within 21 days after receipt of such request or shall not
thereafter proceed to cause the meeting to be held as provided herein, then the
Company or the Holders of Securities of such series in the amount above
specified, as the case may be, may determine the time and the place in the
Borough of Manhattan, The City of New York, for such meeting and may call such
meeting for such purposes by giving notice thereof as provided in subsection (a)
of this Section. 

     SECTION
1503. Persons Entitled to Vote at Meetings.
To be entitled to vote at any meeting of Holders of Securities of any series, a
Person shall be (1) a Holder of one or more Outstanding Securities of such
series, or (2) a Person appointed by an instrument in writing as proxy for a
Holder or Holders of one or more Outstanding Securities of such series by such
Holder or Holders. The only Persons who shall be entitled to be present or to
speak at any meeting of Holders of Securities of any series shall be the Persons
entitled to vote at such meeting and their counsel, any representatives of the
Trustee and its counsel and any representatives of the Company and its counsel.

     SECTION
1504. Quorum; Action. The Persons entitled to
vote a majority in principal amount of the Outstanding Securities of a series
shall constitute a quorum for a meeting of Holders of Securities of such series;
provided,
however,
that if any action is to be taken at such meeting with respect to a consent or
waiver which this Indenture expressly provides may be given by the Holders of
not less than a specified percentage in principal amount of the Outstanding
Securities of a series, the Persons entitled to vote such specified percentage
in principal amount of the Outstanding Securities of such series shall
constitute a quorum. In the absence of a quorum within 30 minutes of the time
appointed for any such meeting, the meeting shall, if convened at the request of
Holders of Securities of such series, be dissolved. In any other case the
meeting may be adjourned for a period of not less than 10 days as determined by
the chairman of the meeting prior to the adjournment of such meeting. In the
absence of a quorum at any such adjourned meeting, such adjourned meeting may be
further adjourned for a period of not less than 10 days as determined by the
chairman of the meeting prior to the adjournment of such adjourned meeting.
Notice of the reconvening of any adjourned meeting shall be given as provided in
Section 1502(a), except that such notice need be given only once not less than
five days prior to the date on which the meeting is scheduled to be reconvened.
Notice of the reconvening of any adjourned meeting shall state expressly the
percentage, as provided above, of the principal amount of the Outstanding
Securities of such series which shall constitute a quorum.

72 

     Except as
limited by the proviso to Section 902, any resolution presented to a meeting or
adjourned meeting duly reconvened at which a quorum is present as aforesaid may
be adopted by the affirmative vote of the Holders of a majority in principal
amount of the Outstanding Securities of that series; provided, however, that, except as limited by
the proviso to Section 902, any resolution with respect to any request, demand,
authorization, direction, notice, consent, waiver or other action which this
Indenture expressly provides may be made, given or taken by the Holders of a
specified percentage, which is less than a majority, in principal amount of the
Outstanding Securities of a series may be adopted at a meeting or an adjourned
meeting duly reconvened and at which a quorum is present as aforesaid by the
affirmative vote of the Holders of such specified percentage in principal amount
of the Outstanding Securities of that series.

     Any
resolution passed or decision taken at any meeting of Holders of Securities of
any series duly held in accordance with this Section shall be binding on all the
Holders of Securities of such series and the related coupons, whether or not
present or represented at the meeting. 

     Notwithstanding the foregoing provisions of this Section 1504, if any
action is to be taken at a meeting of Holders of Securities of any series with
respect to any request, demand, authorization, direction, notice, consent,
waiver or other action that this Indenture expressly provides may be made, given
or taken by the Holders of a specified percentage in principal amount of all
Outstanding Securities affected thereby, or of the Holders of such series and
one or more additional series:

     (i) there shall be no minimum quorum
requirement for such meeting; and

     (ii) the principal amount of the Outstanding Securities of
such series that vote in favor of such request, demand, authorization,
direction, notice, consent, waiver or other action shall be taken into account
in determining whether such request, demand, authorization, direction, notice,
consent, waiver or other action has been made, given or taken under this
Indenture. 

     SECTION
1505. Determination of Voting Rights; Conduct and Adjournment of
Meetings. (a) Notwithstanding any provisions
of this Indenture, the Trustee may make such reasonable regulations as it may
deem advisable for any meeting of Holders of Securities of a series in regard to
proof of the holding of Securities of such series and of the appointment of
proxies and in regard to the appointment and duties of inspectors of votes, the
submission and examination of proxies, certificates and other evidence of the
right to vote, and such other matters concerning the conduct of the meeting as
it shall deem appropriate. Except as otherwise permitted or required by any such
regulations, the holding of Securities shall be proved in the manner specified
in Section 104 and the appointment of any proxy shall be proved in the manner
specified in Section 104 or by having the signature of the Person executing the
proxy witnessed or guaranteed by any trust company, bank or banker authorized by
Section 104 to certify to the holding of Bearer Securities. Such regulations may
provide that written instruments appointing proxies, regular on their face, may
be presumed valid and genuine without the proof specified in Section 104 or
other proof.

73 

     (b) The
Trustee shall, by an instrument in writing appoint a temporary chairman of the
meeting, unless the meeting shall have been called by the Company or by Holders
of Securities as provided in Section 1502(b), in which case the Company or the
Holders of Securities of the series calling the meeting, as the case may be,
shall in like manner appoint a temporary chairman. A permanent chairman and a
permanent secretary of the meeting shall be elected by vote of the Persons
entitled to vote a majority in principal amount of the Outstanding Securities of
such series represented at the meeting. 

     (c) At any
meeting each Holder of a Security of such series or proxy shall be entitled to
one vote for each $1,000 principal amount of the Outstanding Securities of such
series held or represented by him; provided, however, that no vote shall be cast or
counted at any meeting in respect of any Security challenged as not Outstanding
and ruled by the chairman of the meeting to be not Outstanding. The chairman of
the meeting shall have no right to vote, except as a Holder of a Security of
such series or proxy. 

     (d) Any
meeting of Holders of Securities of any series duly called pursuant to Section
1502 at which a quorum is present may be adjourned from time to time by Persons
entitled to vote a majority in principal amount of the Outstanding Securities of
such series represented at the meeting, and the meeting may be held as so
adjourned without further notice. 

     SECTION
1506. Counting Votes and Recording Action of Meetings. The vote upon any resolution submitted to any meeting of
Holders of Securities of any series shall be by written ballots on which shall
be subscribed the signatures of the Holders of Securities of such series or of
their representatives by proxy and the principal amounts and serial numbers of
the Outstanding Securities of such series held or represented by them. The
permanent chairman of the meeting shall appoint two inspectors of votes who
shall count all votes cast at the meeting for or against any resolution and who
shall make and file with the secretary of the
meeting their verified written reports in duplicate of all votes cast at the
meeting. A record, at least in duplicate, of the proceedings of each meeting of
Holders of Securities of any Series shall be prepared by the secretary of the
meeting and there shall be attached to said record the original reports of the
inspectors of votes on any vote by ballot taken thereat and affidavits by one or
more persons having knowledge of the fact, setting forth a copy of the notice of
the meeting and showing that said notice was given as provided in Section 1502
and, if applicable, Section 1504. Each copy shall be signed and verified by the
affidavits of the permanent chairman and secretary of the meeting and one such
copy shall be delivered to the Company and another to the Trustee to be
preserved by the Trustee, the latter to have attached thereto the ballots voted
at the meeting. Any record so signed and verified shall be conclusive evidence
of the matters therein stated. 

ARTICLE
SIXTEEN
SUBORDINATION OF SECURITIES

     SECTION
1601. Agreement to Subordinate. In the event
a series of Securities is designated as subordinated pursuant to Section 301 and
except as otherwise provided in a supplemental indenture or pursuant to Section
301, the Company covenants and agrees, and each Holder of the Securities, by his
acceptance thereof, likewise covenants and agrees, that, to the extent and in
the manner hereinafter set forth in this Article Sixteen (subject to the
provisions of Article Four), the indebtedness represented by the Securities and
the payment of the principal of (and premium, if any) and interest on each and
all of the Securities are hereby expressly made subordinate and subject in right
of payment to the prior payment in full of all Senior Indebtedness. Whenever in
this Article Sixteen there is a reference, in any context, to the principal of
any Securities as of any time, such reference shall be deemed to include
reference to the redemption price payable in respect of such Securities to the
extent that such redemption price is, was or would be so payable at such time,
and express mention of the redemption price in any provision of this Article
Sixteen shall not be construed as excluding the redemption price in those
provisions of this Article Sixteen when such express mention is not
made.

74 

     SECTION
1602. Payment over of Proceeds upon Dissolution, etc. In the event of (a) any insolvency or bankruptcy case or proceeding, or
any receivership, liquidation, reorganization or other similar case or
proceeding in connection therewith, relative to the Company or to its creditors,
as such, or to its assets, or (b) any liquidation, dissolution or other winding
up of the Company, whether voluntary or involuntary and whether or not involving
insolvency or bankruptcy, or (c) any assignment for the benefit of creditors or
any other marshalling of assets and liabilities of the Company, then and in any
such event the holders of Senior Indebtedness shall be entitled to receive
payment in full of all amounts due or to become due on or in respect of all
Senior Indebtedness in cash or other immediately available funds, or provision
shall be made for such payment in cash or other immediately available funds or
otherwise in a manner satisfactory to each holder of Senior Indebtedness with
respect to its indebtedness, before the Holders of Securities are entitled to
receive any payment on account of principal of (or premium, if any) or interest
on the Securities, and to that end the holders of Senior Indebtedness shall be
entitled to receive, for application to the payment thereof, any payment or
distribution of any kind or character, whether in cash, property or securities,
which may be payable or deliverable in respect of the Securities in any such
case, proceeding, dissolution, liquidation or other winding up or event. In the
event that, notwithstanding the foregoing provisions of this Section, the
Trustee or any Holder of Securities shall have received any payment or
distribution of assets of the Company of any kind or character, whether in cash,
securities or other property, before all Senior Indebtedness is paid in full or
payment thereof provided for, and if such fact shall, at or prior to the time of
such payment or distribution, have been made actually known to a Responsible
Officer of the Trustee or, as the case may be, such a Holder of Securities, then
and in such event such payment or distribution shall be paid over or delivered
forthwith to the trustee in bankruptcy, receiver, liquidating trustee,
custodian, assignee, agent or other Person making payment or distribution of
assets of the Company for application to the payment of all Senior Indebtedness
remaining unpaid, to the extent necessary to pay all Senior Indebtedness in
full, after giving effect o any concurrent payment or distribution to or for the
holders of Senior Indebtedness. For purposes of this Article Sixteen only, the
words “cash, securities or other property” shall not be deemed to include shares
of stock of the Company as reorganized or readjusted, or securities of the Company or any other corporation provided for by a
plan of reorganization or readjustment which shares of stock are subordinated in
right of payment to all then outstanding Senior Indebtedness to substantially
the same extent as, or to a greater extent than, the Securities are so
subordinated as provided in this Article Sixteen. The consolidation of the
Company with, or the merger of the Company into, another Person or the
liquidation or dissolution of the Company following the conveyance or transfer
of its properties and assets substantially as an entirety to another Person upon
the terms and conditions set forth in Article Eight shall not be deemed a
dissolution, winding up, liquidation, reorganization, assignment for the benefit
of creditors or marshalling of assets and liabilities of the Company for the
purposes of this Section if the Person formed by such consolidation or into
which the Company is merged or which acquires by conveyance or transfer such
properties and assets substantially as an entirety, as the case may be, shall,
as a part of such consolidation, merger, conveyance or transfer, comply with the
conditions set forth in Article Eight. 

75 

     SECTION
1603. Prior Payment to Senior Indebtedness upon Acceleration of
Securities. In the event that any Securities
are declared due and payable before their maturity, then and in such event the
holders of the Senior Indebtedness outstanding at the time such Securities so
become due and payable shall be entitled to receive payment in full of all
amounts due or to become due on or in respect of such Senior Indebtedness, or
provision shall be made for such payment in money or money’s worth, before the
Holders of Securities are entitled to receive any payment by the Company on
account of the principal of (or premium, if any) or interest on the Securities
or on account of the purchase or other acquisition of Securities. In the event
that, notwithstanding the foregoing, the Company shall make any payment to the
Trustee or any Holder of Securities prohibited by the foregoing provisions of
this Section, and if such fact shall, at or prior to the time of such payment,
have been made actually known to a Responsible Officer of the Trustee or, as the
case may be, such a Holder of Securities, then and in such event such payment
shall be paid over and delivered forthwith to the Company. The provisions of
this Section shall not apply to any payment with respect to which Section 1602
would be applicable. 

     SECTION
1604. No Payment When Senior Indebtedness in Default. (a) In the event and during the continuation of any default in the
payment of principal of (or premium, if any) or interest on (including a default
under any redemption or repurchase obligation with respect to) any Senior
Indebtedness beyond any applicable grace period with respect thereto or in the
event that any other event of default with respect to any Senior Indebtedness
shall have occurred and be continuing which would then permit the holders of
such Senior Indebtedness to declare such Senior Indebtedness due and payable
prior to the date on which it would otherwise have become due and payable,
unless and until such event of default shall have been cured or waived or shall
have ceased to exist after written notice to the Company and the Trustee by any
holder of such Senior Indebtedness, or (b) in the event any judicial proceeding
shall be pending with respect to any such default in payment or event of
default, then no payment shall be made by the Company on account of principal of
(or premium, if any) or interest on the Securities or on account of the
purchase, redemption or other acquisition of Securities. In the event that,
notwithstanding the foregoing, the Company shall make any payment to the Trustee
or any Holder of Securities prohibited by the foregoing provisions of this
Section, and if such fact shall, at or prior to the time of such payment, have
been made known to the Trustee or, as the case may be, such a Holder of
Securities, then and in such event such payment shall be paid over and delivered
forthwith to the Company, in the case of the Trustee, or the Trustee, in the
case of such a Holder of Securities. The provisions of this Section shall not
apply to any payment with respect to which Section 1602 would be applicable.

76 

     SECTION
1605. Payment Permitted If No Default.
Nothing contained in this Article Sixteen or elsewhere in this Indenture or in
any of the Securities shall prevent (a) the Company, at any time except during
the pendency of any case, proceeding, dissolution, liquidation or other winding
up, assignment for the benefit of creditors or other marshalling of assets and
liabilities of the Company referred to in Section 1602, or under the conditions
described in Sections 1603 and 1604, from making payments at any time of
principal of (and premium, if any) or interest on
the Securities, or (b) the application by the Trustee of any money deposited
with it hereunder to the payment of or on account of the principal of (and
premium, if any) or interest on the Securities or the retention of such payment
by the Holders of Securities, if, at the time of such application by the
Trustee, a Responsible Officer of the Trustee did not have knowledge that such
payment would have been prohibited by the provisions of this Article Sixteen.

     SECTION
1606. Subrogation to Rights of Holders of Senior Indebtedness. Subject to the payment in full of all Senior Indebtedness,
the holders of the Securities shall be subrogated to the extent of the payments
or distributions made to the holders of such Senior Indebtedness pursuant to the
provisions of this Article Sixteen to the rights of the holders of such Senior
Indebtedness to receive payments and distributions of cash, property and
securities applicable to the Senior Indebtedness until the principal of (and
premium, if any) and interest on the Securities shall be paid in full. For
purposes of such subrogation, no payments or distributions to the holders of the
Senior Indebtedness of any cash, property or securities to which the holders of
the Securities or the Trustee would be entitled except for the provisions of
this Article Sixteen, and no payments over pursuant to the provisions of this
Article to the holders of Senior Indebtedness by holders of the Securities or
the Trustee, shall, as among the Company, its creditors other than holders of
Senior Indebtedness and the holders of the Securities, be deemed to be a payment
or distribution by the Company to or on account of the Senior Indebtedness.

     SECTION
1607. Provisions Solely to Define Relative Rights. The provisions of this Article Sixteen are and are intended solely for
the purpose of defining the relative rights of the holders of the Securities on
the one hand and the holders of Senior Indebtedness on the other hand. Nothing
contained in this Article Sixteen or elsewhere in this Indenture or in the
Securities is intended to or shall (a) impair, as among the Company, its
creditors other than holders of Senior Indebtedness and the holders of the
Securities, the obligation of the Company, which is absolute and unconditional,
to pay to the holders of the Securities the principal of (and premium, if any)
and interest on the Securities as and when the same shall become due and payable
in accordance with their terms; or (b) affect the relative rights against the
Company of the holders of the Securities and creditors of the Company other than
the holders of Senior Indebtedness; or (c) prevent the Trustee or the Holder of
any Securities from exercising all remedies otherwise permitted by applicable
law upon default under this Indenture, subject to the rights, if any, under this
Article Sixteen of the holders of Senior Indebtedness to receive cash, property
and securities otherwise payable or deliverable to the Trustee or such Holder.

     SECTION
1608. Trustee to Effectuate Subordination.
Each Holder of a Security by his acceptance thereof authorizes and directs the
Trustee on his behalf to take such action as may be necessary or appropriate to
effectuate the subordination provided in this Article Sixteen and appoints the
Trustee his attorney-in-fact for any and all such purposes. 

77 

     SECTION
1609. No Waiver of Subordination Provisions.
No right of any present or future holder of any Senior Indebtedness to enforce
subordination as herein provided shall at any time in any way be prejudiced or
impaired by any act or failure to act on the part of the Company or by any act
or failure to act, in good faith, by any such holder of any Senior Indebtedness,
or by any non-compliance by the Company with the terms, provisions and covenants
of this Indenture, regardless of any knowledge thereof any such holder may have
or be otherwise charged with. Without in any way limiting the generality of the
foregoing paragraph, the holders of Senior Indebtedness may, at any time and
from time to time, without the consent of or notice to the Trustee or the
holders of the Securities, without incurring responsibility to the holders of
the Securities and without impairing or releasing the subordination provided in
this Article Sixteen or the obligations hereunder of the holders of the
Securities to the holders of Senior Indebtedness, do any one or more of the
following: (i) change the manner, place or terms of payment or extend the time
for payment of, or renew, increase or alter, Senior Indebtedness, or otherwise
amend or supplement in any manner Senior Indebtedness or any instrument
evidencing the same or any agreement under which Senior Indebtedness is
outstanding; (ii) sell, exchange, release or otherwise deal with any property
pledged, mortgaged or otherwise securing Senior Indebtedness; (iii) release any
Person liable in any manner for the collection of Senior Indebtedness; and (iv)
exercise or refrain from exercising any rights against the Company and any other
Person. 

     SECTION
1610. Notice to Trustee. The Company shall
give prompt written notice to the Trustee of any fact known to the Company that
would prohibit the making of any payment to or by the Trustee in respect of the
Securities. Notwithstanding the provisions of this Article Sixteen or any other
provision of this Indenture, the Trustee shall not be charged with knowledge of
the existence of any facts which would prohibit the making of any payment to or
by the Trustee in respect of the Securities, unless and until the Trustee shall
have received written notice thereof from the Company or a holder of Senior
Indebtedness or from any trustee therefor; and, prior to the receipt of any such
written notice, the Trustee, subject to the provisions of Article Six, shall be
entitled in all respects to assume that no such facts exist; provided that if
the Trustee shall not have received the notice provided for in this Section at
least two Business Days prior to the date upon which by the terms hereof any
money may become payable for any purpose (including, without limitation, the
payment of the principal of (and premium, if any) or interest on any
Securities), then, anything herein contained to the contrary notwithstanding,
the Trustee shall have full power and authority to receive such money and to
apply the same to the purpose for which such money was received and shall not be
affected by any notice to the contrary which may be received by it within two
Business Days prior to such date. Notwithstanding anything in this Article
Sixteen to the contrary, nothing shall prevent any payment by the Trustee to the
holders of monies deposited with it pursuant to Article Fourteen, and any such
payment shall not be subject to the provisions of Sections 1602, 1603 or 1604.
Subject to the provisions of Article Six, the Trustee shall been titled to
conclusively rely on the delivery to it of a written notice by a Person
representing himself to be a holder of Senior Indebtedness (or a trustee
therefor) to establish that such notice has been given by a holder of Senior
Indebtedness (or a trustee therefor). In the event that the Trustee determines
in good faith that further evidence is required with respect to the right of any
Person as a holder of Senior Indebtedness to participate in any payment or
distribution pursuant to this Article Sixteen, the Trustee may request such
Person to furnish evidence to the reasonable satisfaction of the Trustee as to
the amount of Senior Indebtedness held by such Person, the extent to which such
Person is entitled to participate in such payment or distribution and any other
facts pertinent to the rights of such Person under this Article Sixteen, and if
such evidence is not furnished, the Trustee may defer any payment to such Person
pending judicial determination as to the right of such Person to receive such
payment. 

78 

     SECTION
1611. Reliance on Judicial Order or Certificate of Liquidating
Agent. Upon any payment or distribution of
assets of the Company referred to in this Article Sixteen, the Trustee, subject
to the provisions of Article Six, and the holders of the Securities shall be
entitled to conclusively rely upon any order or decree entered by any court of
competent jurisdiction in which such insolvency, bankruptcy, receivership,
liquidation, reorganization, dissolution, winding up or similar case or
proceeding is pending, or a certificate of the trustee in bankruptcy, receiver,
liquidating trustee, custodian, assignee for the benefit of creditors, agent or
other Person making such payment or distribution, delivered to the Trustee or to
the holders of Securities, for the purpose of ascertaining the Persons entitled
to participate in such payment or distribution, the holders of the Senior
Indebtedness and other indebtedness of the Company, the amount thereof or
payable thereon, the amount or amounts paid or distributed thereon and all other
facts pertinent thereto or to this Article Sixteen. 

     SECTION
1612. Trustee Not Fiduciary for Holders of Senior Indebtedness. The Trustee shall not be deemed to owe any fiduciary duty to
the holders of Senior Indebtedness and shall not be liable to any such holders
if it shall in good faith mistakenly pay over or distribute to holders of
Securities or to the Company or to any other Person cash, property or securities
to which any holders of Senior Indebtedness shall be entitled by virtue of this
Article Sixteen or otherwise. With respect to the holders of Senior
Indebtedness, the Trustee undertakes to perform or to observe only such of its
covenants or obligations as are specifically set forth in this Article Sixteen
and no implied covenants or obligations with respect to holders of Senior
Indebtedness shall be read into this Indenture against the Trustee. 

     SECTION
1613. Rights of Trustee as Holder of Senior Indebtedness; Preservation of
Trustee’s Rights. The Trustee in its
individual capacity shall be entitled to all the rights set forth in this
Article Sixteen with respect to any Senior Indebtedness which may at any time be
held by it, to the same extent as any other holder of Senior Indebtedness, and
nothing in this Indenture shall deprive the Trustee of any of its rights as such holder. Nothing in this Article Sixteen shall
apply to claims of, or payments to, the Trustee under or pursuant to Article
Six. 

     SECTION
1614. Article Applicable to Paying Agents. In
case at any time any Paying Agent other than the Trustee shall have been
appointed by the Company and be then acting hereunder, the term “Trustee” as
used in this Article Sixteen shall in such case (unless the context otherwise
requires) be construed as extending to and including such Paying Agent within
its meaning as fully for all intents and purposes as if such Paying Agent were
named in this Article Sixteen in addition to or in place of the Trustee;
provided that Section 1613 shall not apply to the Company or any Affiliate of
the Company if it or such Affiliate acts as Paying Agent. 

* * * * * 

79 

     This
Indenture may be executed in any number of counterparts, each of which so
executed shall be deemed to be an original, but all such counterparts shall
together constitute but one and the same Indenture. 

80 

      IN
WITNESS WHEREOF, the undersigned being duly authorized, have executed this
Indenture on behalf of the respective parties hereto as of the date first above
written. 

		PHOTRONICS, INC.  
		  
		By: 
    	 
			Name:   
			Title:   
	 	  
	 	  
		THE
      BANK OF NEW YORK MELLON,  
		as
      Trustee  
		  
		By: 
    	 
			Name:   
			Title:   

81 

EXHIBIT A

FORMS OF CERTIFICATION

EXHIBIT A-1

FORM OF CERTIFICATE TO BE GIVEN BY
PERSON ENTITLED
TO RECEIVE BEARER
SECURITY OR TO OBTAIN INTEREST
PAYABLE
PRIOR TO THE EXCHANGE DATE

CERTIFICATE 

[Insert title or sufficient description
of Securities to be delivered] 

     This is to
certify that, as of the date hereof, and except as set forth below, the
above-captioned Securities held by you for our account (i) are owned by
person(s) that are not citizens or residents of the United States, domestic
partnerships, domestic corporations or any estate or trust the income of which
is subject to United States federal income taxation regardless of its source
(“United States person(s)”), (ii) are owned by United
States person(s) that are (a) foreign branches of United States financial
institutions (financial institutions, as defined in United States Treasury
Regulations Section 1.165-12(c)(1)(iv) are herein referred to as “financial
institutions”) purchasing for their own account or for resale, or (b) United
States person(s) who acquired the Securities through foreign branches of United
States financial institutions and who hold the Securities through such United
States financial institutions on the date hereof (and in either case (a) or (b),
each such United States financial institution hereby agrees, on its own behalf
or through its agent, that you may advise Photronics, Inc. or its agent that
such financial institution will comply with the requirements of Section
165(j)(3)(A), (B) or (C) of the United States Internal Revenue Code of 1986, as
amended, and the regulations thereunder), or (iii) are owned by United States or
foreign financial institution(s) for purposes of resale during the restricted
period (as defined in United States Treasury Regulations Section
1.163-5(c)(2)(i)(D)(7)), and, in addition, if the owner is a United States or
foreign financial institution described in clause (iii) above (whether or not
also described in clause (i) or (ii)), this is to further certify that such
financial institution has not acquired the Securities for purposes of resale
directly or indirectly to a United States person or to a person within the
United States or its possessions. 

     As used
herein, “United States” means the United States of America (including the States and
the District of Columbia); and its “possessions” include Puerto Rico, the U.S.
Virgin Islands, Guam, American Samoa, Wake Island and the Northern Mariana
Islands. 

     We undertake
to advise you promptly by tested telex on or prior to the date on which you
intend to submit your certification relating to the above-captioned Securities
held by you for our account in accordance with
your Operating Procedures if any applicable statement herein is not correct on
such date, and in the absence of any such notification it may be assumed that
this certification applies as of such date. 

     This
certificate excepts and does not relate to [U.S.$] _______ of such interest in
the above-captioned Securities in respect of which we are not able to certify
and as to which we understand an exchange for an interest in a Permanent Global
Security or an exchange for and delivery of definitive Securities (or, if
relevant, collection of any interest) cannot be made until we do so certify.

     We
understand that this certificate may be required in connection with certain tax
legislation in the United States. If administrative or legal proceedings are
commenced or threatened in connection with which this certificate is or would be
relevant, we irrevocably authorize you to produce this certificate or a copy
thereof to any interested party in such proceedings. 

	Dated:  	 
	  
	[To be dated
      no earlier than the 15th day prior to (i) the Exchange Date or (ii) the
      relevant Interest Payment Date occurring prior to the Exchange Date, as
      applicable]

	[Name of Person
      Making Certification]  
	  
	  
	(Authorized
      Signatory)  
	Name:  
	Title:  

A-1-2 

 EXHIBIT A-2 

FORM OF CERTIFICATE TO BE GIVEN BY
EUROCLEAR AND
CLEARSTREAM IN CONNECTION
WITH THE EXCHANGE OF 
A PORTION OF A
TEMPORARY GLOBAL SECURITY
OR TO OBTAIN
INTEREST PAYABLE PRIOR
TO THE EXCHANGE
DATE

CERTIFICATE 

[Insert title or sufficient description
of Securities to be delivered] 

     This is to
certify that, based solely on written certifications that we have received in
writing, by tested telex or by electronic transmission from each of the persons
appearing in our records as persons entitled to a portion of the principal
amount set forth below (our “Member Organizations”) substantially in the form
attached hereto, as of the date hereof, [U.S.$] _______ principal amount of the
above-captioned Securities (i) is owned by person(s) that are not citizens or
residents of the United States, domestic partnerships, domestic corporations or
any estate or trust the income of which is subject to United States Federal
income taxation regardless of its source (“United States person(s)”), (ii) is
owned by United States person(s) that are (a) foreign branches of United States
financial institutions (financial institutions, as defined in U.S. Treasury
Regulations Section 1.165-12(c)(1)(v) are herein referred to as “financial
institutions”) purchasing for their own account or for resale, or (b) United
States person(s) who acquired the Securities through foreign branches of United
States financial institutions and who hold the Securities through such United
States financial institutions on the date hereof (and in either case (a) or (b),
each such financial institution has agreed, on its own behalf or through its
agent, that we may advise Photronics, Inc. or its agent that such financial
institution will comply with the requirements of Section 165(j)(3)(A), (B) or
(C) of the Internal Revenue Code of 1986, as amended, and the regulations
thereunder), or (iii) is owned by United States or foreign financial
institution(s) for purposes of resale during the restricted period (as defined
in United States Treasury Regulations Section 1.163-5(c)(2)(i)(D)(7)), and, to
the further effect, that financial institutions described in clause (iii) above
(whether or not also described in clause (i) or (ii)) have certified that they
have not acquired the Securities for purposes of resale directly or indirectly
to a United States person or to a person within the United States or its
possessions. 

     As used
herein, “United States” means the United States of America (including the States
and the District of Columbia); and its “possessions” include Puerto Rico, the
U.S. Virgin Islands, Guam, American Samoa, Wake Island and the Northern Mariana
Islands. 

     We further
certify that (i) we are not making available herewith for exchange (or, if
relevant, collection of any interest) any portion of the temporary global
Security representing the above-captioned Securities excepted in the
above-referenced certificates of Member Organizations and (ii) as of the date
hereof we have not received any notification from any of our Member
Organizations to the effect that the statements made by such Member
Organizations with respect to any portion of the
part submitted herewith for exchange (or, if relevant, collection of any
interest) are no longer true and cannot be relied upon as of the date hereof.

     We
understand that this certification is required in connection with certain tax
legislation in the United States. If administrative or legal proceedings are
commenced or threatened in connection with which this certificate is or would be
relevant, we irrevocably authorize you to produce this certificate or a copy
thereof to any interested party in such proceedings. 

	Dated:  	 
		 
	[To be dated no earlier
      than the Exchange Date or the relevant Interest Payment Date occurring
      prior to the Exchange Date, as applicable]

	[Morgan
      Guaranty Trust Company of New York, Brussels Office,] as Operator of the
      Euroclear System [Clearstream]
	   
	By 
    	 

A-2-2

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