Document:

Exhibit 4.2

 

THE COMPANIES LAW

 

A COMPANY LIMITED BY SHARES

 

AMENDED AND RESTATED ARTICLES OF ASSOCIATION

 

of

 

cyren
LTD.

 

		1.	Preliminary

 

		1.1. 	Construction. In these Articles, each of the following terms shall have the respective meaning
appearing next to it, if not inconsistent with the subject or context:

 

		1.1.1. 	“Articles” - These Articles of Association, as amended from time to time. 

 

		1.1.2. 	“Board” - the board of directors appointed under these Articles. 

 

		1.1.3. 	“Company” - Cyren Ltd. 

 

		1.1.4. 	“Companies Law” - The Companies Law, 5759-1999 and any regulations promulgated thereunder. 

  

		1.1.5. 	“General Meeting” - an Annual Meeting or a Special Meeting as defined in Article
9.2.1. 

 

		1.1.6. 	“Shareholder” - 

  

		(a)	A holder of one or more of the shares of the Company; or

  

		(b)	a person registered as such in the Register of Shareholders;
or

  

		(c)	a person who holds a share certificate. 

  

		1.1.7. 	“Register of Shareholders” - The Register of Shareholders pursuant to Article 12. 

  

		1.1.8. 	“Year and Month” - A Gregorian month or year. 

  

		1.2. 	Any capitalized term used but not otherwise defined in these Articles shall have the meaning ascribed to it in the Companies
Law. 

  

		2.	Public Company

  

 The Company is a Public Company as such term is defined in the Companies Law.

 

		3.	Share Capital

 

		3.1. 	The authorized share capital of the Company is NIS 11,303,001 divided into seventy-five million
three hundred fifty three thousand three hundred and forty (75,353,340) Ordinary Shares of nominal value NIS 0.15 per share (“Ordinary
Shares”). 

 

		3.2. 	The holders of issued and outstanding Ordinary Shares shall have all the rights, powers and authorities
associated with the shares of the Company, including the power to appoint directors, to receive notice of, and to vote in, General
Meetings of the Company, and to receive dividends and any surplus upon the liquidation of the Company. 

 

     

     

    

    

		3.3. 	If at any time the share capital is divided into different classes of shares, then, unless the
conditions of allotment of such class provide otherwise, the rights, additional rights, advantages, restrictions and conditions
attached or not attached to any class, at any given time, may be modified, enhanced, added or abrogated by the Company by resolution
at a meeting of the holders of the shares of such class. 

  

		4.	Issuance of Securities

  

		4.1. 	The unissued shares of the Company shall be under the control
of the Board. 

  

		4.2. 	The Board shall have the power to allot, issue or otherwise
dispose of shares to such persons, at such times, on such terms and conditions, and either at par or less than par, at a premium,
for cash or other consideration, in whole or in part, at a discount or with payment of commission, with such preferred or deferred
rights, restrictions or conditions, all in accordance with the provisions of the Companies Law and as the Board shall deem fit
from time to time, provided that such shares do not exceed the registered share capital of the Company. The Board of Directors
shall also have the power to give any person the option to acquire from the Company any shares, either at par or less than par,
at a premium, for cash or other consideration, in whole or in part, at a discount or with payment of commission, all in accordance
with the provisions of the Companies Law and as the Board shall deem fit from time to time. 

  

		4.3. 	The Board may resolve to issue one or more series of debentures;
however, such borrowing power shall be limited to actions that do not unreasonably jeopardize the Company’s ability to pay
its debt or to conduct its business as an entity that seeks to maximize profits. 

  

		4.4. 	The Company may, subject to applicable law, issue redeemable
shares and redeem the same. 

  

		5.	Reorganization of Capital

  

		5.1. 	Increase of Capital

  

		5.1.1. 	The Company may, from time to time, by resolution of the
Shareholders, whether or not all the shares then authorized have been issued, and whether or not all the shares issued have been
called for payment, increase its authorized share capital. Any such increase shall be in such amount and shall be divided into
shares of such nominal amounts, with such rights and preferences and subject to such restrictions, as such resolution shall provide. 

  

		5.1.2. 	Except to the extent otherwise provided in such resolution, any new shares included in the authorized
share capital increased under Article 5.1.1 shall be subject to all the provisions of these Articles which are applicable to shares
included in the existing share capital, without regard to class (and, if such new shares are of the same class as a class of shares
included in the existing share capital, to all of the provisions that are applicable to shares of such class included in the existing
share capital). 

  

		5.2. 	Consolidation, Subdivision, Cancellation and Reduction of Capital.

  

The Company may, from time to time, by resolution of the Shareholders (subject to applicable law):

  

		5.2.1. 	consolidate all or any part of its issued or unissued share capital into shares of a per share
nominal value that is greater than the per share nominal value of its existing shares;

 

    	 	2	 

     

    

  

		5.2.2. 	subdivide its shares (issued or unissued) or any of them into shares of lesser nominal value than
is fixed by these Articles;

  

		5.2.3. 	cancel any shares that have not been issued or subscribed for, and decrease the amount of its authorized
share capital by the amount of the shares so canceled, subject to any commitment (including a conditional commitment) given by
the Company in respect of such shares. 

  

		5.2.4. 	reduce its share capital in any manner, and with and subject to any consent required by law. 

  

		5.3. 	With respect to any action that may result in fractional shares, the Board may settle any difficulty
that may arise with regard thereto as it deems fit, and in connection with any such consolidation or other action that may
result in fractional shares may, without limitation:

  

		5.3.1. 	determine, as to the holder of the shares so consolidated, which issued shares shall be consolidated
into a share of a larger nominal value per share;

 

		5.3.2. 	allot, in contemplation of or subsequent to such consolidation or other action, shares or fractional
shares sufficient to preclude or remove fractional share holdings;

 

		5.3.3. 	redeem, in the case of redeemable shares and subject to the Companies Law, such shares or fractional
shares sufficient to preclude or remove fractional share holdings; or

 

		5.3.4. 	cause the transfer of fractional shares by certain Shareholders to other Shareholders so as most
expediently to preclude or remove any fractional share holdings, and cause the transferees of such fractional shares to pay the
transferors of such fractional shares the fair value thereof, and the Board is hereby authorized to act in connection with such
transfer as agent for the transferors and transferees of any such fractional shares, with full power of substitution, for the purpose
of implementing the provisions of this Article 5.3. 

 

		6.	Transfer of Shares

         

		6.1. 	Registration of Transfer

  

		6.1.1. 	No transfer of shares shall be registered in the Register of Shareholders unless one of the following
conditions has been met:

 

		6.1.1.1. 	a proper writing or instrument of transfer (in any customary form or any other form satisfactory
to the Board) signed by the transferee and the transferor, together with the share certificate(s) and such other evidence of title
as the Board may reasonably require, were submitted to the Company, and the relevant provisions in these Articles to effect a transfer
of shares have been fully complied with. Until the transferee has been registered in the Register of Shareholders in respect of
the shares so transferred, the Company may continue to regard the transferor as the owner thereof. 

   

		6.1.1.2. 	the Company received a court order requiring the change in the Register of Shareholders. 

   

		6.1.1.3. 	the Company received proof that the legal requirements for the assignment of rights to any Shares
were fulfilled. 

   

		6.1.1.4. 	the occurrence of a condition that is sufficient, under these Articles, to effect the change in
the Register of Shareholders. 

         

    	 	3	 

     

    

 

		6.2. 	Decedent’s Shares

   

		6.2.1. 	In case of a share registered in the names of two or more holders, the Company may recognize the
survivor(s) as the sole owner(s) thereof unless and until the provisions of Article 6.2.2 have been effectively invoked. 

 

		6.2.2. 	Any person becoming entitled to a share in consequence of the death of any person, upon producing
evidence of the grant of probate or letters of administration or order of inheritance (or such other evidence as the Board may
reasonably deem sufficient), shall be registered as a Shareholder in respect of such share, or may, subject to the regulations
as to transfer herein contained, transfer such share. 

 

		6.3. 	Receivers and Liquidators

  

		6.3.1. 	The Company may recognize any receiver, liquidator or similar official appointed to wind up, dissolve
or otherwise liquidate a corporate Shareholder, and a trustee, manager, receiver, liquidator or similar official appointed in bankruptcy
or in connection with the reorganization of, or similar proceeding with respect to a Shareholder or its properties, as being entitled
to the shares registered in the name of such Shareholder. 

 

		6.3.2. 	Such receiver, liquidator or similar official appointed to wind up, dissolve or otherwise liquidate
a corporate Shareholder, and such trustee, manager, receiver, liquidator or similar official appointed in bankruptcy or in connection
with the reorganization of, or similar proceeding with respect to, a Shareholder or its properties, upon producing such evidence
as the Board may deem sufficient as to his authority to act in such capacity or under this Article, shall with the consent of the
Board (which the Board may grant or refuse in its absolute discretion) be registered as a Shareholder in respect of such shares,
or may, subject to the regulations as to transfer contained in these Articles, transfer such shares. 

 

		7.	Limitation of Liability

         

The liability of each Shareholder
shall be limited to the payment of the nominal value of its shares or the subscription price paid for such shares, if greater than
the nominal value. If the Company issues shares for consideration that is less than the nominal value of such shares, in accordance
with, the terms and conditions set forth in Section 304 of the Companies Law, then the liability of each such Shareholder shall
be governed by the terms of Section 304 of the Companies Law.

 

		8.	Amendments to the Articles

         

The Company may amend
these Articles by resolution adopted by the Shareholders by a regular majority of Shareholders present at the General or Special
Meeting entitled to vote. The Company shall not amend the Articles in a manner that adversely affects the rights of a Shareholder
without obtaining the consent of all Shareholders that are adversely affected by such modification. For the avoidance of doubt,
any amendment that affects all the Shareholders in the same manner shall not be deemed to constitute a modification of rights associated
with specific shares.

         

		9.	General Meetings

         

		9.1. 	The Powers of the General Meeting

  

The following matters of the Company shall be decided in a General Meeting of Shareholders:

  

		9.1.1. 	Amendment of these Articles. 

 

		9.1.2. 	Exercise of the powers vested in the Board in the event that the Board is unable to exercise such
powers, as provided in Section 52(a) of the Companies Law. 

 

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		9.1.3. 	Appointment and termination of the Company’s auditors. 

 

		9.1.4. 	Approval of actions and transactions that are required pursuant to Sections 254 and 255, and 270
through 275, of the Companies Law. 

 

		9.1.5. 	Increase and reduction of the authorized share capital of the Company in accordance with Sections
286 and 287 of the Companies Law. 

 

		9.1.6. 	Approval of a merger in accordance with Section 320(a) of the Companies Law. 

 

		9.1.7. 	Discussion of the financial statements at an Annual Meeting (as defined below). 

 

		9.1.8. 	Appointment of Outside Directors in accordance with Section 239(b) of the Companies Law. 

  

		9.2. 	Annual Meetings and Special Meetings

  

		9.2.1. 	An Annual General Meeting shall be held at least once in every calendar year (within a period of
not more than 15 months after the last preceding Annual General Meeting), at such time and at such place as determined by the Board.
Such Annual General Meetings shall be referred to as “Annual Meetings”. Any other Shareholders meetings shall be referred
to as “Special Meetings”. 

 

		9.2.2. 	The agenda at an Annual Meeting shall include a discussion of the annual financial statements of
the Company and of the report submitted by the Board that shall include explanations concerning the various events that had an
influence on the financial statements. 

  

		9.3. 	Convening a General Meeting

  

		9.3.1. 	The Board may, whenever it thinks fit, convene a Special Meeting, at such time and place as may
be determined by the Board, and shall be obliged to do so upon the receipt of a written request from (i) either 2 directors or
25% of the directors then in office, (ii) a Shareholder or group of Shareholders that holds at least 5% of the issued and outstanding
shares of the Company and at least 1% of the voting rights in the Company, or a Shareholder or group of Shareholders that holds
at least 5% of the voting rights in the Company, as provided in Section 63 of the Companies Law. 

  

		9.3.2. 	Notice of a General Meeting shall be delivered to Shareholders entitled to receive such notice
in the manner and to the extent required by the Companies Law and any regulations promulgated thereunder. The Company shall make
copies of its annual financial statements available for inspection by the Shareholders at the principal offices of the Company.
The Company shall not be required to send copies of its annual financial statements to Shareholders, except upon request. 

  

		9.3.3. 	The accidental omission to give notice of a meeting to any Shareholder or Shareholders, or the
non-receipt of notice sent to such Shareholder, shall not invalidate the proceedings at such meeting. 

  

		9.4. 	Proceedings at a General Meeting

  

		9.4.1. 	The Agenda: The agenda for a General Meeting shall be determined by the Board, and shall
include (i) in the case of a Special Meeting, the matters for which the Special Meeting was convened pursuant to Section 63 of
the Companies Law, and (ii) matters requested by a Shareholder or Shareholders holding not less than (1%) of the voting rights
in the General Meeting, provided that such proposed matter is appropriate for discussion in a General Meeting. Only resolutions
on matters that are specified in the agenda shall be adopted at such Special Meeting. 

 

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		9.4.2. 	Quorum:

 

		9.4.2.1. 	No business shall be transacted at a General Meeting unless a legal quorum is present, and no resolution
may be passed unless a legal quorum is present at the time such resolution is voted upon. 

  

		9.4.2.2. 	In the absence of a contrary provision in these Articles
or in the Companies Law, two or more Shareholders, present in person or by proxy and holding shares conferring in the aggregate
at least one third of the outstanding voting power of the Company shall constitute a legal quorum at General Meetings. 

  

		9.4.2.3. 	If within half an hour from the time scheduled for a General
Meeting a legal quorum is not present, the meeting shall be adjourned to the same day in the next week, at the same time and place,
or to such other day and at such other time and other place as the Board may determine in a notice to the Shareholders. If within
half an hour from the time scheduled for the adjourned meeting a legal quorum is not present, then any two Shareholders entitled
to vote, present in person or by proxy, shall constitute a legal quorum for such adjourned meeting and shall be entitled to resolve
any matters on the agenda of the meeting. 

  

		9.4.3. 	Chairman: The Chairman of the Board shall preside at every General Meeting of the Company
and shall be appointed as the Chairman of the General Meeting. If a Chairman of the Board was not appointed, or if the Chairman
of the Board is not present within 15 minutes after the time scheduled for the meeting or is unwilling to take the chair, the Shareholders
present shall choose someone of their number to be the chairman of such meeting. The office of Chairman of a General Meeting shall
not, by itself, entitle the holder to vote at any General Meeting nor shall it grant him a second or casting vote (without derogating,
however, from the right of such Chairman to vote as a shareholder or proxy of a shareholder if, in fact, he is also a shareholder
or such proxy). 

  

		9.4.4. 	Power to Adjourn: The Chairman of a General Meeting at which a quorum is present may, with
the consent of the holders of a majority of the voting power represented in person or by proxy and voting on the question of adjournment,
and shall if so directed by the meeting, adjourn the meeting from time to time and from place to place, but no business shall be
transacted at any adjourned meeting except business that might lawfully have been transacted at the meeting as originally called. 

  

		9.4.5. 	Voting Power: Every matter submitted to the General Meeting shall be decided by a vote.
Any vote in a General Meeting shall be conducted in accordance with the voting rights that each Shareholder is entitled to in accordance
with the number of shares granting voting rights that are held by such Shareholder. 

  

		9.4.6. 	Adoption of Resolutions at General Meetings: Subject to the provisions of the Companies
Law and to Article 8 above, a resolution proposed at any General Meeting shall be deemed adopted if approved by a majority of the
voting shares represented at such meeting in person or by proxy. A declaration by the Chairman of the General Meeting that a resolution
has been carried unanimously, or carried by a particular majority, or defeated, and an entry to that effect in the minute book
of the Company shall be conclusive evidence of the fact without proof of the number or proportion of the votes recorded in favor
of or against such resolution. 

  

		9.5. 	Resolutions in Writing.

  

A resolution in writing signed
by the Shareholders holding at such time all the issued shares having the right to vote at General Meetings, or to which all such
Shareholders had agreed to in writing (by letter, telegram, email, telex, facsimile or otherwise), shall have the same force, for
any purpose whatsoever, as if unanimously adopted by a General Meeting duly convened and held.

  

    	 	6	 

     

    

 

		9.6. 	Voting Rights and Proxies

  

		9.6.1. 	No Shareholder shall be entitled to vote in any General Meeting (or be counted as a part of the
quorum) unless he fully paid any amounts due, whether with or without any demand for payment for his shares. 

  

		9.6.2. 	In the absence of contrary provisions in these Articles or in any condition or term annexed to
any shares of any class, each Shareholder participating in a General Meeting shall have one vote for each share giving a right
to vote in a General Meeting that is held by such Shareholder. 

 

		9.6.3. 	If two or more persons are registered as joint holders of any share, the vote of the person first
registered in the Register of Shareholders shall be accepted to the exclusion of the vote(s) of the other joint holder(s). 

  

		9.6.4. 	A company or other corporate body being a Shareholder of the Company may duly authorize any person
to be its representative at any General Meeting or to authorize or deliver a proxy on its behalf. Any person so authorized shall
be entitled to exercise on behalf of such Shareholder all the power that the latter could have exercised if it were a natural person.
Upon the request of the Chairman of the meeting, written evidence of such authorization (in form acceptable to the Chairman of
the meeting) shall be delivered to him. 

  

		9.6.5. 	Any Shareholder entitled to vote may vote either in person or by ballot, as provided in Sections
87 to 89 of the Companies Law or by proxy (and the proxy need not be a Shareholder) or, if the Shareholder is a company or other
corporate body, by a representative authorized pursuant to Article 9.6.4. The Board of Directors may determine, in its discretion,
the matters that may be voted upon by ballot, in accordance with Section 87(a)(4) of the Companies Law. 

  

		9.6.6. 	Instrument of Appointment: An instrument appointing a proxy shall be in writing and shall
be substantially in the following form:

  

“I_____________________
of ________________________

(Name of Shareholder)    (Address of Shareholder)

  

being a Shareholder of Cyren Ltd. hereby appoint

  

_______________________of_________________________

(Name of Proxy)     (Address
of Proxy)

  

as my proxy to vote for
me and on my behalf at the General Meeting of the Company to be held on the ____ day of _____________, ______ and at any adjournment(s)
thereof.

  

Signed
this ______ day of _______, _______,

 

	 	 
	 	(Signature of Appointer)”

  

or in any usual or common form
or in such other form as may be approved by the Board. Such proxy shall be duly signed by the appointor or such person’s
duly authorized attorney or, if such appointor is a company or other corporate body, under its common seal or stamp or the hand
of its duly authorized agent(s) or attorney(s) in accordance with its constitutional documents.

  

		9.6.7. 	The instrument appointing a proxy (and the power of attorney or other authority, if any, under
which such instrument has been signed) shall either be delivered to the Company (at its principal place of business or at the offices
of its registrar or transfer agent, or at such place as the Board may specify) not less than 24 hours before the time fixed for
the meeting at which the person named in the instrument proposes to vote, or presented to the Chairman at such General Meeting.
An instrument appointing a proxy that is not limited in time shall expire 12 months after the date of its execution. If the appointment
shall be for a specified period, whether in excess of 12 months or not, the instrument shall be valid for the period stated therein. 

  

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		9.6.8. 	A vote cast in accordance with an instrument appointing a proxy shall be valid despite the prior
death or bankruptcy of the appointing Shareholder (or of his attorney-in-fact, if any, who signed such instrument), or the transfer
of the share in respect of which the vote is cast, unless written notice of such matters shall have been received by the Company
or by the Chairman of such General Meeting prior to such vote being cast. 

  

		9.6.9. 	An instrument appointing a proxy shall be deemed revoked (i) upon receipt by the Company of an
instrument or written notice signed by the person who signed such instrument or by the Shareholder appointing such proxy canceling
the appointment thereunder (or the authority pursuant to which such instrument was signed) or of an instrument appointing a different
proxy, provided such notice of cancellation or instrument appointing a different proxy were so received at the place and within
the time for delivery of the instrument revoked thereby as referred to in Article 9.6.7, or (ii) if the appointing Shareholder
is present in person at the meeting for which such instrument of proxy was delivered, upon receipt by the Chairman of such meeting
of written notice from such Shareholder of the revocation of such appointment, or if and when such Shareholder votes at such meeting.
A vote cast in accordance with an instrument appointing a proxy shall be valid despite the revocation or purported cancellation
of the appointment, or the presence in person or vote of the appointing Shareholder at a meeting for which it was rendered, unless
such instrument of appointment was deemed revoked in accordance with the foregoing provisions of this Article 9.6.9 at or prior
to the time such vote was cast. 

  

		10.	The Board of Directors

         

		10.1. 	Number of Directors

  

The Board shall be comprised
of up to eleven (11) directors, including the outside directors (to the extent applicable).

  

		10.2. 	Election and Removal of Directors

  

Directors
shall be elected at the Annual General Meeting by the vote of the holders of a majority of the voting power represented at such
meeting in person or by proxy and voting on the election of directors, and each Director shall serve, subject to Article 10.8 hereof,
and with respect to a Director appointed pursuant to Article 10.4 hereof subject to such Article, until the Annual General Meeting
next following the Annual General Meeting or General Meeting at which such Director was elected pursuant to this Article or Article
10.4 hereof and until his successor is elected, or until his earlier removal pursuant to this Article 10.2. The holders of a majority
of the voting power represented at a General Meeting in person or by proxy and voting thereon at such meeting shall be entitled
to remove any Director(s) from office, to elect Directors instead of Directors so removed or to fill any vacancy, however created
(including any position to which a director was not elected), in the Board. In the case of an outside director or any other director
for whom the Companies Law prescribes a different method of election or removal from that specified above, the provisions of the
Companies Law shall govern.

  

		10.3. 	Qualification of Directors

  

No
person or entity shall be disqualified to serve as a director or an Alternate Director by reason of his not holding shares in the
Company or by reason of his having served as a director in the past.

  

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		10.4. 	Continuing Directors in the Event of Vacancies

  

In
the event of one or more vacancies in the Board of Directors, the remaining Directors may continue to act in every matter and,
pending the filling of any vacancy pursuant to the provisions of Article 10.2, may appoint Directors to fill any such vacancy temporarily;
provided, however, that if they number less than a majority of the number determined pursuant to Article 10.1 of these Articles,
they may act only in an emergency or to fill the office of Director that has become vacant up to the minimum number or in order
to call a General Meeting of the Company for the purpose of electing Directors to fill any or all vacancies, so that at least a
majority of the number of Directors determined pursuant to Article 10.1 are in office as a result of such meeting.

  

		10.5. 	Remuneration of Directors

  

A
Director shall be paid remuneration by the Company for his services as a Director, to the extent such remuneration shall have been
approved by a General Meeting of the Company.

  

		10.6. 	Conflict of Interests

  

Subject
to the provisions of the Companies Law, no Director shall be disqualified by virtue of his office from holding any office or relationship
of profit with the Company or with any company in which the Company shall be a shareholder or have another interest, or from contracting
with the Company as vendor, purchaser or otherwise, nor shall any such contract, or any contract or arrangement entered into by
or on behalf of the Company in which any Director shall in any way be interested, be avoided, nor, other than as required under
the Companies Law, shall any Director be liable to account to the Company for any profit arising from any such office or relationship
of profit or realized from such contract or arrangement by reason only of such Director’s holding that office or of the fiduciary
relations thereby established, but the nature of his interest, as well as any material fact or document, must be disclosed by him
at the meeting of the Board of Directors at which the contract or arrangement is first considered, if his interest then exists,
or in any other case no later than the first meeting of the Board of Directors after the acquisition of his interest.

  

		10.7. 	Alternate Directors

  

		10.7.1. 	A Director may, by written notice to the Company given in the manner set forth in Article 10.7.2
below, appoint any individual (whether or not such person is then a member of the Board of Directors) as an alternate for himself
(in these Articles referred to as an “Alternate Director”), remove such Alternate Director and appoint another
Alternate Director in place of any Alternate Director appointed by him whose office has been vacated for any reason. Unless the
appointing Director, by the instrument appointing an Alternate Director or by written notice to the Company, limits such appointment
to a specified period of time or restricts it to a specified meeting or action of the Board of Directors, or otherwise restricts
its scope, the appointment shall be for all purposes, and for a period of time, concurrent with the term of the appointing Director. 

 

		10.7.2. 	Any notice to the Company pursuant to Article 10.7.1 shall be given in person to, or by sending
the same by mail to the attention of, the Chairman of the Board of the Company at the principal office of the Company or to such
other person or place as the Board shall have determined for such purpose, and shall become effective on the date fixed therein,
or upon the receipt thereof by the Company at the place specified above, whichever is later. 

 

		10.7.3. 	An Alternate Director shall have all the rights and obligations of a director; provided, however,
that (i) an Alternate Director shall have no standing at any meeting of the Board or any Committee of the Board while the director
for whom such Alternate Director was appointed is present; (ii) he may not in turn appoint an alternate for himself (unless the
instrument appointing him otherwise expressly provides); and (iii) the Alternate Director is not entitled to remuneration. 

 

		10.7.4. 	The office of an Alternate Director shall be vacated under the circumstances, mutatis mutandis,
set forth in Article 10.8, and such office shall ipso facto be vacated if the director for whom the Alternate Director was appointed
ceases to be a director. 

 

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		10.8. 	Termination of Office

 

Without
derogating from any law, the office of a director shall automatically be vacated, ipso facto, prior the end of the term of his
appointment upon the following:

  

		10.8.1. 	Upon resignation, which shall become effective on the date a written notice of such resignation
is delivered to the Company, or a later date specified in the notice. 

 

		10.8.2. 	If convicted of a felony, as provided in Section 232 of the Companies Law. 

 

		10.8.3. 	Pursuant to a court’s decision, as provided in Section 233 of the Companies Law. 

 

		10.8.4. 	Upon death or when declared bankrupt. 

 

		10.8.5. 	If he be found lunatic or becomes of unsound mind. 

 

		10.8.6. 	At the time of giving notice pursuant to Section 227A or 245A of the Companies Law. 

 

		10.8.7. 	If he is removed from his office by way of a resolution, adopted by the General Meeting, even prior
to the completion of his term of office. 

 

		10.8.8. 	If his term is terminated by the Board in accordance with the provisions of Section 231 of the
Companies Law. 

 

		10.9. 	No Corporate Director

 

A
corporation will not be qualified to act as a director.

 

		10.10. 	Chairman of the Board of Directors

 

The Board may from time to
time elect one of its members to be Chairman of the Board, remove such Chairman from office, and appoint another in his place.
The Chairman of the Board shall preside at every meeting of the Board, but if there is no such Chairman, or if at any meeting the
Chairman is not present within 15 minutes after the time fixed for holding the meeting or is unwilling to act as Chairman, the
Directors present shall choose someone of their number to be chairman of such meeting. The Chairman will not have any casting or
additional vote by reason of his position as Chairman of the Board.

  

		10.11. 	Powers of the Board and Delegation of Powers

 

		10.11.1. 	The determination of the policy of the business of the Company and the supervision on the performance
of the General Manager of the Company shall be vested in the Board, which may exercise all such powers and do all such acts and
things as the Company is authorized to exercise and do and which are not required by law or these Articles to be done by the Company
by action of its Shareholders at a General Meeting. The authority conferred on the Board by this Article shall be subject to the
provisions of the Companies Law, these Articles and any resolution consistent with these Articles adopted from time to time by
the Company at a General Meeting; provided, however, that no such resolution shall invalidate any prior act done by or pursuant
to a decision of the Board that would have been valid if such resolution had not been adopted. 

 

		10.11.2. 	Subject to the provisions of the Companies Law, the Board may from time to time, by power of attorney
or otherwise, appoint any person, company, firm or body of persons to be the attorney or attorneys of the Company at law or in
fact for such purpose(s) and with such powers, authorities and discretions, and for such period and subject to such conditions,
as it deems fit, and any such power of attorney or other appointment may contain such provisions for the protection and convenience
of persons dealing with any such attorney as the Board deems fit, and may also authorize any such attorney to delegate all or any
of the powers, authorities and discretions vested in him. 

 

    	 	10	 

     

    

 

		10.12. 	Proceedings of the Board

 

		10.12.1. 	Meetings

 

		10.12.1.1. 	The Board may meet and adjourn its meetings and otherwise regulate such meetings and proceedings
in accordance with the Company’s needs; provided, however, that the Board must meet at least once every 3 months. 

 

		10.12.1.2. 	The Chairman of the Board may convene a meeting of the Board at any time, and shall be required
to convene a meeting to be held not later than 14 days following a request by any Director of the Company; provided, that in the
event that a meeting is convened under the circumstances described in Section 122(d), 169 or 257 of the Companies Law, the meeting
of the Board shall be convened without delay. 

 

Notice of any such meeting shall be given by telephone
or by mail, email, telex, telegram or facsimile or other form of electronic communication, a reasonable time before the meeting.

 

		10.12.2. 	Failure to Deliver Notices: Despite anything to the contrary in these Articles, failure
to deliver notice to a Director of any such meeting may be waived by such Director, and a meeting shall be deemed to have been
duly convened despite such defective notice if such failure or defect is waived prior to action being taken at such meeting by
all Directors entitled to participate and vote in such meeting to whom notice was not duly given. 

  

		10.12.3. 	Board Meetings by Means of Telecommunication: A meeting of the Board may be conducted by
using any communication device, provided that all directors participating in such meeting can simultaneously hear each other. 

  

		10.12.4. 	Quorum: No business shall be transacted at a meeting of the Board unless the requisite legal
quorum is present (by means provided under Articles 10.12.3) when the meeting proceeds to business. Until otherwise decided by
the Board, a legal quorum at a meeting of the Board shall be constituted by the presence (by means provided under Article 10.12.4)
of a majority of the number of directors then in office. 

  

		10.12.5. 	Exercise of Powers of the Board: A resolution proposed at any meeting of the Board shall
be deemed adopted if approved by a majority of the Directors present when such resolution is put to a vote and voting thereon. 

  

		10.12.6. 	The Agenda: The agenda for a meeting of the Board shall be determined by the Chairman of
the Board, and shall include matters determined by the Chairman of the Board, matters for which a meeting of the Board was convened
pursuant to Article 10.12.1.2, and any matter requested by a director or the General Manager at least 3 days before the meeting. 

 

		10.13. 	Resolutions in Writing

  

A resolution in writing signed
all the directors then in office and lawfully entitled to vote thereon, or to which all the directors have given their written
consent (by letter, email, telegram, telex, facsimile or otherwise) shall be deemed to have been unanimously adopted by a meeting
of the Board duly convened and held.

 

    	 	11	 

     

    

 

		10.14. 	Audit Committee

 

		10.14.1. 	The Board shall appoint an Audit Committee that shall be composed of at least three members of
the Board. All outside directors of the Company shall be members of the Audit Committee and the majority of the Audit Committee
members will be independent directors (as such term is defined in the Companies Law). The Chairman of the Board, any director that
is employed by the Company or who provides the Company with services on a regular basis, and any controlling shareholder (or a
relative of a controlling shareholder) may not be members of the Audit Committee. 

 

		10.14.2. 	The Audit Committee shall have the duties set forth in Section 117 of the Companies Law. 

 

		10.14.3. 	Approval by the majority of the members of the Audit Committee shall be deemed approval of the
Audit Committee. 

 

		10.15. 	Committees of the Board

 

		10.15.1. 	Subject to the provisions of the Companies Law, the Board may delegate any or all of its powers
to committees, each consisting of two or more persons who are directors, and it may from time to time revoke such delegation or
alter the composition of any such committee. Any committee so formed (in these Articles referred to as a “Committee of
the Board”) shall, in the exercise of the powers so delegated, conform to any regulations imposed on it by the Board.
The meetings and proceedings of any such Committee of the Board shall, mutatis mutandis, be governed by the provisions of these
Articles that regulate the meetings of the Board. Unless otherwise expressly provided by the Board in delegating powers to a Committee
of the Board, such Committee shall not be empowered to further delegate such powers. 

 

		10.15.2. 	The Board may revoke any resolution of any Committee of the Board; provided, however, that any
such revocation shall not detract from the validity of any transaction entered into with a person that did not know of such revocation. 

 

		10.16. 	Validity of Acts Despite Defects

  

Subject to the provisions of
the Companies Law, all acts done bona fide at any meeting of the Board, or of a Committee of the Board, or by any person(s) acting
as Director(s), shall, even if it is subsequently discovered that there was some defect in the appointment of the participants
in such meeting or any of them or any person(s) acting as aforesaid, or that they or any of them were disqualified, be as valid
as if there were no such defect or disqualification.

 

		11.	General Manager

 

		11.1. 	The Board shall from time to time appoint one or more persons, whether or not Directors, as General
Manager or General Managers, and may confer upon such person(s), and from time to time modify, or revoke such title(s) and
such duties and authorities as the Board may deem fit, subject to such limitations and restrictions as the Board may from time
to time prescribe. Such appointment(s) may be either for a fixed term or without any limitation of time, and the Board may from
time to time (subject to the provisions of the Companies Law and of any contract between any such person and the Company) fix his,
her or their salaries and emoluments, remove or dismiss such persons from office and appoint another or others in their place. 

 

		11.2. 	Unless otherwise determined by the Board, the General Manager shall have the authority with respect
to the day to day management of the Company in the ordinary course of business, in the framework of, and subject to, the policy,
guidelines and instructions of the Board from time to time. 

 

		11.3. 	The General Manager shall have all the management and implementation authorities that are not expressly
delegated in the Articles or by the Companies Law, to another organ of the Company, and will be subject to the supervision of the
Board. 

 

		11.4. 	The General Manager may, with the consent of the Board, delegate certain of his duties to another
person who is subject to his supervision. 

 

    	 	12	 

     

    

 

		11.5. 	The General Manager shall notify the Chairman of the Board of any unusual event that is material
to the Company; if the office of Chairman of the Board is vacant, or the Chairman of the Board refuses or is unable to act, such
notification shall be made to all the Directors then in office. 

 

		11.6. 	The General Manager shall periodically furnish the Board with reports in matters, times and format
determined by the Board from time to time. When a notification or report of the General Manager require the performance of an action
by the Board, then a Board meeting shall be convened without delay. 

 

		11.7. 	The remuneration payable to the General Manager for his services shall be fixed from time to time
(subject to any contract between the General Manager and the Company) by the Board, and may be fixed as a regular salary, commission
on dividends, profits or revenues of the Company or of any other company in which the Company has an interest, or by participation
in the Company’s profits, combined or separately. 

 

		12.	Register of Shareholders

 

The Company shall maintain a
Register of Shareholders in which the following shall be recorded:

 

		12.1. 	The name, identification card number (if any) and address of every Shareholder, as such details
were provided to the Company;

 

		12.2. 	The number of shares and the particular class of Shares owned by each Shareholder, noting the nominal
value of such shares, if applicable, and in case the payment for any shares was not fully satisfied, the unpaid amount. 

 

		12.3. 	The date on which the shares were issued or transferred to any Shareholder, as the case may be. 

 

		12.4. 	If the shares were serially numbered, the Company will note next to the name of each Shareholder
the serial numbers of the shares held by such Shareholder. 

 

		12.5. 	As for “Dormant Shares” (as defined in Section 308 of the Companies Law), if any, the
Register of Shareholders shall state the exact number of Dormant Shares and the date on which such shares became “Dormant
Shares”. 

 

		12.6. 	A Shareholder holding shares as a trustee shall be recorded in the Register of Shareholder with
a note of the trusteeship, and the Company shall be entitled to treat such person as the Shareholder in all respects. 

 

		12.7. 	The details of the Company's nominee company (hevra lerishumim), to the extent the Company
chooses to include it in the Register of Shareholders. 

 

		13.	Auditors

 

		13.1. 	The Company shall appoint one or more certified public accountants to audit, and provide a report
on, the annual financial statements of the Company (the “Auditors”). 

 

		13.2. 	The appointment, authorities, duties, responsibilities, rights, remuneration and powers of the
Auditors shall be fixed by applicable law and under these Articles. The General Meeting shall have the power to appoint the Auditors
for the maximum time period provided under the Companies Law. 

 

		13.3. 	The Board shall cause accurate books of account to be kept in accordance with the provisions of
any applicable law. Such books of account shall be kept at the principal office of the Company, or at such other place or places
as the Board may deem fit, and they shall always be open to inspection by all Directors. 

 

    	 	13	 

     

    

 

		14.	Share Certificates

 

		14.1. 	Share certificates shall be issued under the corporate seal of the Company (or facsimile thereof)
and shall bear the signature (or facsimile thereof) of two Directors, or the signatures of a Director and the secretary of the
Company, specifically authorized by the Board for this purpose. 

 

		14.2. 	Each Shareholder shall be entitled to one numbered certificate for all the shares of any class
registered in his name, and if the Board so approves, to several certificates, each for one or more of such shares. Each certificate
shall specify the serial numbers of the shares represented thereby and may also specify the amount paid up thereon. 

 

		14.3. 	A share certificate registered in the names of two or more persons shall be delivered to the person
first named in the Register of Shareholders in respect of such co-ownership. 

 

		14.4. 	A share certificate that has been defaced, lost or destroyed may be replaced, and the Company shall
issue a new certificate to replace such defaced, lost or destroyed certificate upon payment of such fee, and upon the furnishing
of such evidence of ownership and such indemnity, as the Board in its discretion deems fit. 

 

		15.	Registered Holder

 

Except as otherwise provided
in these Articles, the Company shall be entitled to treat the registered holder of each share as the absolute owner thereof, and
accordingly shall not, except as ordered by a court of competent jurisdiction or as required by statute, be obligated to recognize
any equitable or other claim to, or interest in, such share on the part of any other person.

 

		16.	Calls on Shares

 

		16.1. 	The Board may, from time to time, as it in its discretion deems fit, make calls for payment upon
Shareholders in respect of any sum that has not been paid up in respect of shares held by such Shareholder and which is not, pursuant
to the terms of allotment or issuance of such shares or otherwise, payable at a fixed time. Each Shareholder shall pay the amount
of every call so made upon him (and of each installment thereof if the same is payable in installments), to the person(s) and at
the time(s) designated by the Board, as any such time(s) may subsequently be extended or such person(s) or place(s) changed. Unless
otherwise stipulated in the resolution of the Board (and in the notice referred to below), each payment in response to a call shall
be deemed to constitute a pro rata payment on account of all the shares of the Shareholder making payment in respect of which such
call was made. 

 

		16.2. 	Notice of any call for payment by a Shareholder shall be given in writing to such Shareholder not
less than 14 days prior to the time of payment fixed in such notice, and shall specify the time and place of payment, and the person
to whom such payment is to be made. Prior to the time for any such payment fixed in a notice of a call given to a member, the Board
may in its absolute discretion, by notice in writing to such Shareholder, revoke such call in whole or in part, extend the time
fixed for payment of such call or designate a different place of payment or person to whom payment is to be made. In the event
of a call payable in installments, only one notice thereof need be given. 

 

		16.3. 	If pursuant to the terms of allotment or issuance of a share, or otherwise, an amount is made payable
at a fixed time (whether on account of such share or by way of premium), such amount shall be payable at such time as if it were
payable by virtue of a call made by the Board of Directors and for which notice was given in accordance with this Article, and
the provisions of these Articles with regard to calls (and the non-payment thereof) shall be applicable to such amount (and the
non-payment thereof). 

  

		16.4. 	Joint holders of a share shall be jointly and severally liable to pay all calls for payment in
respect of such share and all interest payable thereon. 

  

    	 	14	 

     

    

 

		16.5. 	Any amount called for payment that is not paid when due shall bear interest from the date fixed
for payment until actual payment, at such rate (not exceeding the legal rate under any applicable law) and payable at such time(s)
as the Board may prescribe. The Board may waive any payment of such interest under this Article. 

  

		16.6. 	With the consent of the Board, any Shareholder may pay to the Company any amount not yet payable
in respect of his shares, and the Board may approve the payment by the Company of interest on any such amount until the same would
be payable if it had not been paid in advance, at such rate and time(s) as may be approved by the Board. The Board may at any time
cause the Company to repay all or any part of the money so advanced, without premium or penalty. Nothing in this Article shall
derogate from the right of the Board to make any call for payment before or after receipt by the Company of any such advance. 

  

		17.	Forfeiture and Surrender

  

		17.1. 	If any Shareholder fails to pay an amount payable by virtue of a call, or interest thereon as provided
for in accordance with these Articles, on or before the day fixed for payment of the same, the Board may at any time after the
day fixed for such payment, so long as such amount or any portion thereof remains unpaid, forfeit all or any of the shares in respect
of which such payment was called for. All expenses incurred by the Company in attempting to collect any such amount or interest
thereon, including without limitation attorney’s fees and costs of legal proceedings, shall be added to, and shall for all
purposes (including the accrual of interest thereon) constitute a part of, the amount payable to the Company in respect of such
call. 

  

		17.2. 	Upon the adoption of a resolution as to the forfeiture of a Shareholder’s shares, the Board
shall cause notice thereof to be given to such Shareholder, which notice shall state that, in the event of the failure to pay the
entire amount so payable by a date specified in the notice (which date shall be not less than 14 days after the date such notice
is given and which may be extended by the Board), such shares shall ipso facto be forfeited; provided, however that prior to such
date the Board may nullify such resolution of forfeiture, but no such nullification shall estop the Board from adopting a further
resolution of forfeiture in respect of the non-payment of the same amount. 

  

		17.3. 	Without derogating from any of the provisions of this Article 17, whenever shares are forfeited
as herein provided, all dividends, if any, theretofore declared in respect thereof and not actually paid, shall be deemed to have
been forfeited at the same time. 

  

		17.4. 	Any share forfeited or surrendered as provided herein shall become the property of the Company,
and the same, subject to the provisions of these Articles, may be sold, re-allotted or otherwise disposed of as the Board deems
fit. From the date of forfeiture until the date such forfeited shares are sold, re-allotted or otherwise disposed of, such forfeited
shares shall be deemed “Dormant Shares” as defined in Section 308 of the Companies Law. 

  

		17.5. 	Any Shareholder whose shares have been forfeited or surrendered shall cease to be a Shareholder
in respect of the forfeited or surrendered shares, but shall nonetheless be liable to pay, and shall promptly pay, to the Company
all calls, interest and expenses owing upon or in respect of such shares at the time of forfeiture or surrender, together with
interest thereon from the time of forfeiture or surrender until actual payment at the rate prescribed in this Article 17, and the
Board, in its discretion, may enforce the payment of such moneys or any part thereof. In the event of such forfeiture or surrender,
the Company, by resolution of the Board, may accelerate the date(s) of payment of any or all amounts then owing to the Company
by the Shareholder in question (but not yet due) in respect of all shares owned by such Shareholder, solely or jointly with another. 

  

		17.6. 	The Board may at any time, before any share so forfeited or surrendered shall have been sold, re-allotted
or otherwise disposed of, nullify the forfeiture or surrender on such conditions as it deems fit, but no such nullification shall
estop the Board from re-exercising its powers of forfeiture pursuant to this Article 17. 

  

		17.7. 	If pursuant to the terms of allotment or issuance of a share, or otherwise, an amount is made payable
at a fixed time (whether on account of such share or by way of premium), such amount shall be payable at such time as if it were
payable by virtue of a call made by the Board and for which notice was given in accordance with this Article, and the provisions
of these Article shall be applicable to such amount as if a call was given at the date fixed for payment. 

 

    	 	15	 

     

    

 

		17.8. 	Except to the extent that the same may be waived or subordinated in writing, the Company shall
have a first and paramount lien upon all the shares registered in the name of each Shareholder (without regard to any equitable
or other claim or interest in such shares on the part of any other person), and upon the proceeds of the sale thereof, for his
debts, liabilities and obligations to the Company arising from any amount payable by such Shareholder in respect of any unpaid
or partly paid share, whether or not such debt, liability or obligation has matured. Such lien shall extend to all dividends from
time to time declared or paid in respect of such share. Unless otherwise provided, the registration by the Company of a transfer
of shares shall be deemed to be a waiver on the part of the Company of any lien existing on such shares immediately prior to such
transfer. 

  

		17.9. 	The Board may cause the Company to sell a share subject to such a lien when the debt, liability
or obligation giving rise to such lien has matured, in such manner as the Board deems fit, but no such sale shall be made unless
such debt, liability or obligation has not been satisfied within 14 days after written notice of the intention to sell shall have
been served on such Shareholder, his executors or administrators. 

  

		17.10. 	The net proceeds of any such sale, after payment of the costs thereof, shall be applied in or toward
satisfaction of the debts, liabilities or obligations of such Shareholder in respect of such share (whether or not the same have
matured), and any residue shall be paid to the Shareholder, his executors, administrators or assigns. 

  

		17.11. 	Upon any sale of a share after forfeiture or surrender or for enforcing a lien, the Board may appoint
any person to execute an instrument of transfer of the share so sold and cause the purchaser’s name to be entered in the
Register of Shareholders in respect of such share. The purchaser shall be registered as the shareholder and shall not be bound
to see to the regularity of the sale proceedings or to the application of the proceeds of such sale, and after his name has been
entered in the Register of Shareholders in respect of such share, the validity of the sale shall not be impeached by any person,
and the remedy of any person aggrieved by the sale shall be in damages only and against the Company exclusively. 

  

		18.	Insurance, Indemnification and Exculpation

  

The Company may insure, indemnify
and exculpate its Office Holders (as such term is defined in the Companies Law) to the fullest extent permitted by law, from time
to time. Without limiting the generality of the foregoing:

  

		18.1. 	Subject to the provisions of the Companies Law, the Company may enter into a contract for the insurance
of its Office Holders, for actions or omissions done in their capacity as Office Holders, in whole or in part, against any of the
following:

  

		18.1.1. 	breach of the duty of care owed to the Company or a third party;

  

		18.1.2. 	breach of the fiduciary duty owed to the Company, provided that the Office Holder acted in good
faith and had reasonable grounds to believe that his action would not harm the Company’s interests;

  

		18.1.3. 	monetary liability imposed on the Office Holder in favor of a third party; and

  

		18.1.4. 	reasonable litigation expenses, including attorney fees, incurred by the Office Holder as a result
of an administrative enforcement proceeding instituted against him. Without derogating from the generality of the foregoing, such
expenses will include a payment imposed on the Office Holder in favor of an injured party as set forth in Section 52(54)(a)(1)(a)
of the Israel Securities Law, 5728-1968, as amended (the “Securities Law”), and expenses that the Office Holder incurred
in connection with a proceeding under Chapters H’3, H’4 or I’1 of the Securities Law, including reasonable legal
expenses, which term includes attorney fees. 

  

    	 	16	 

     

    

 

		18.2. 	Subject to the provisions of the Companies Law, the Company is entitled retroactively to indemnify
any Office Holder, or provide a prior undertaking to indemnify an Office Holder to the fullest extent permitted by law, where such
prior undertaking is limited to categories of events that the Board believes are foreseeable in light of the Company’s activities
on the date of grant of the undertaking to indemnify, and to an amount or in accordance with guidelines determined by the Board
to be reasonable in the circumstances (and such undertaking includes the categories of events that the Board believes are foreseeable
in light of the Company’s activities on the date of grant of the undertaking to indemnify and to an amount or in accordance
with guidelines determined by the Board to be reasonable in the circumstances), for any of the following events:

  

		18.2.1. 	monetary liability imposed on an Office Holder in favor of a third party in a judgment, including
a settlement or an arbitral award confirmed by a court, for an act that such Office Holder performed by virtue of his being an
Office Holder of the Company;

  

		18.2.2. 	reasonable legal costs, including attorney’s fees, expended by an Office Holder as a result
of i) an investigation or proceeding instituted against the Office Holder by a competent authority, provided that such investigation
or proceeding concludes without the filing of an indictment against the Office Holder and either (A) no financial liability
was imposed on the Office Holder in lieu of criminal proceedings, or (B) financial liability was imposed on the Office Holder
in lieu of criminal proceedings but the alleged criminal offense does not require proof of criminal intent and ii) in connection
with an administrative enforcement proceeding or a financial sanction. Without derogating from the generality of the foregoing,
such expenses will include a payment imposed on the Office Holder in favor of an injured party as set forth in Section 52(54)(a)(1)(a)
of the Securities Law, and expenses that the Office Holder incurred in connection with a proceeding under Chapters H’3, H’4
or I’1 of the Securities Law, including reasonable legal expenses, which term includes attorney fees; and

 

		18.2.3. 	reasonable costs of litigation, including attorney’s fees, expended by an Office Holder or
for which an Office Holder has been charged by a court, in an action brought against the Office Holder by or on behalf of the Company
or a third party, or in a criminal action in which an Office Holder was found innocent, or in a criminal offense in which an Office
Holder was convicted and in which a proof of criminal intent is not required. 

 

		18.2.4. 	for any other liability, obligation or expense indemnifiable or which may from time to time be
indemnifiable by law. 

  

		18.3. 	Subject to the provisions of the Companies Law, the Company may exculpate an Office Holder in advance
from liability, or any part of liability, for damages sustained by a breach of duty of care to the Company. 

 

		18.4. 	The provisions of Article 18 are not intended, and shall not be interpreted, to restrict the Company
in any manner in respect of the procurement of insurance or in respect of indemnification (i) in connection with any person
who is not an Office Holder, including, without limitation, any employee, agent, consultant or contractor of the Company who is
not an Office Holder, or (ii) in connection with any Office Holder to the extent that such insurance and/or indemnification
is not specifically prohibited under law; provided that the procurement of any such insurance or the provision of any such indemnification
shall be approved by the Board and, to the extent required pursuant to the Companies Law, the Shareholders. 

 

		18.5. 	Any amendment to the Companies Law, the Securities Law or any other applicable law, statute or
rule adversely affecting the right of any Office Holder to be indemnified or insured pursuant to Article 18 shall be prospective
in effect, and shall not affect the Company’s obligation or ability to indemnify or insure an Office Holder for any act or
omission occurring prior to such amendment, unless otherwise provided by the Companies Law, the Securities Law or such other applicable
law, statute or rule. 

  

    	 	17	 

     

    

 

		19.	Dividends

  

		19.1. 	No dividend shall be paid otherwise than in accordance with Chapter 2 of Part 7 of the Companies
Law. 

  

		19.2. 	Subject to the rights of Shareholders as to dividends, any dividend paid by the Company shall be
allocated among the Shareholders entitled thereto, in proportion to the sums paid up or credited as paid up on account of the nominal
value of their respective holdings of the shares in respect of which such dividend is being paid without taking into account the
premium paid up for the shares. The amount paid up on account of a share that has not yet been called for payment or fallen due
for payment and upon which the Company pays interest to the shareholder shall not be deemed, for the purposes of this Article,
to be a sum paid on account of the share. 

  

		19.3. 	Subject to the provisions of Section 303 of the Companies Law, no dividend shall be paid otherwise
than out of the Profits of the Company, as defined in Section 302(b) of the Companies Law. 

  

		19.4. 	No dividend shall carry interest as against the Company. 

  

		19.5. 	Subject to the provisions of these Articles and the Companies Law, the Company may cause any moneys,
investments or other assets forming part of the undivided distributable profits of the Company to be capitalized and distributed
among such of the Shareholders as would be entitled to receive the same if distributed by way of dividend and in the same proportion. 

  

		19.6. 	For the purpose of giving full effect to any resolution under this Article 19, the Board may settle
any difficulty that may arise in regard to the distribution as it deems expedient, and in particular may issue fractional certificates,
and may fix the value for distribution of any specific assets, and may determine that cash payments shall be made to any Shareholders
upon the basis of the value so fixed, or that fractions of less value than the nominal value of one share may be disregarded in
order to adjust the rights of all parties, and may vest any such cash, shares, debentures, debenture stock or specific assets in
trustees upon such trusts for the persons entitled to the dividend or capitalized fund as may seem expedient to the Board. 

  

		19.7. 	Without derogating from this Article 19, the Board may give an instruction that shall prevent the
distribution of a dividend to the holders of shares on which the full nominal amount has not been paid up. 

  

		19.8. 	The Board may retain any dividend or other moneys payable or property distributable in respect
of shares on which the Company has a lien, and may apply the same in or toward satisfaction of the debts, liabilities or obligations
in respect of which the lien exists. 

  

		19.9. 	The Board may retain any dividend or other moneys payable or property distributable in respect
of a share in respect of which any person is, under Article 6.2 or Article 6.3, entitled to become a Shareholder, or which any
person is, under such Articles, entitled to transfer, until such person shall become a Shareholder in respect of such share or
shall transfer the same. 

  

		20.	Minutes

  

		20.1. 	Minutes of each General Meeting, of each meeting of the Board and of each meeting of a Committee
of the Board shall be recorded and duly entered in books provided for that purpose, and shall be maintained by the Company at its
principal office or such other place as shall be determined by the Board. Such minutes shall, in all events, set forth the name
of the persons at the meeting and all resolutions adopted at the meeting. 

  

		20.2. 	Any such minutes, if purporting to be signed by the chairman of the meeting or by the chairman
of the next succeeding meeting, shall constitute prima facie evidence of the matters recorded therein. 

 

    	 	18	 

     

    

 

		21.	Charitable Contributions

  

To the extent permitted by
the Companies Law, the Company may elect to contribute reasonable amounts to worthy causes.

  

		22.	Notices

  

		22.1. 	Any written notice or other document may be served by the Company upon any Shareholder either personally
or by sending it by prepaid mail (airmail if sent internationally) addressed to such Shareholder’s address as it appears
in the Register of Shareholders or such other address as he may have designated in writing for the receipt of notices and other
documents, provided however that the Board may resolve that any such address must be located within the State of Israel. 

  

		22.2. 	Notwithstanding anything to the contrary contained herein, notice by the Company of a General Meeting
which is published in at least two daily newspapers in the State of Israel within the time otherwise required for giving notice
of such meeting under Article 9.3.2 hereof and containing the information required to be set forth in such notice under such Article
shall be deemed to be a notice of such meeting duly given, for purposes of these Articles, to any Shareholder whose address as
registered in the Register of Shareholders is located in the State of Israel. 

  

		22.3. 	Any written notice or other document may be served by any Shareholder upon the Company by tendering
the same in person to the Secretary or the General Manager of the Company at the principal office of the Company or by sending
it by prepaid registered mail (airmail if posted internationally) to the Company at its principal office. Any such notice or other
document shall be deemed to have been served when actually tendered if hand delivered, or 48 hours (7 business days if sent internationally)
after it has been posted (or when actually received by the addressee if sooner). Notice sent by telegram, telex, facsimile or e-mail
shall be deemed to have been served when actually received by the addressee. A notice that is defectively addressed or that otherwise
fails to comply with the provisions of this Article 22.3 shall nevertheless be deemed to have been served if and when actually
received by the addressee. 

  

		22.4. 	All notices to be given to the Shareholders shall, with respect to any share to which such persons
are jointly entitled, be given to whichever of such persons is named first in the Register of Shareholders, and any notice so given
shall be sufficient notice to all the holders of such share. 

  

		22.5. 	Any Shareholder whose address is not listed in the Register of Shareholders, and who shall not
have designated in writing an address for the delivery of notices, shall not be entitled to receive any notice from the Company. 

  

		22.6. 	Notwithstanding any other contrary provision of these Articles, the Board may fix a date, not exceeding
forty (40) days prior to the date of any General Meeting, as the date as of which shareholders entitled to notice of and to vote
at such meetings shall be determined, and all persons who were holders of record of voting shares on such date shall be entitled
to notice of and to vote at such meeting. 

 

    	 	19exhibit_4-4.htm

Exhibit
4.3

 

CYREN Ltd.

 

and

 

_______________

 

Trustee

 

INDENTURE

 

Dated as of _______________

 

SENIOR DEBT SECURITIES

 

  

  

  

CROSS-REFERENCE TABLE(1)

 

	

Section of Trust Indenture Act of 1939, as amended

	  	

Section of Indenture

	
310(a)                                                                                                             

	
6.09

	
310(b)                                                                                                             

	
6.08

	  	
6.10

	
310(c)                                                                                                             

	
Inapplicable

	
311(a)                                                                                                             

	
6.13

	
311(b)                                                                                                             

	
6.13

	
311(c)                                                                                                             

	
Inapplicable

	
312(a)                                                                                                             

	
4.01

4.04

	
312(b)                                                                                                             

	
4.04(c)

	
312(c)                                                                                                             

	
4.04(c)

	
313(a)                                                                                                             

	
4.03

	
313(b)                                                                                                             

	
4.03

	
313(c)                                                                                                             

	
4.03

	
313(d)                                                                                                             

	
4.03

	
314(a)                                                                                                             

	
4.02

	
314(b)                                                                                                             

	
Inapplicable

	
314(c)                                                                                                             

	
2.04

8.04

9.01(c)

10.01(b)

11.05

	
314(d)                                                                                                             

	
Inapplicable

	
314(e)                                                                                                             

	
11.05

	
314(f)                                                                                                             

	
Inapplicable

	
315(a)                                                                                                             

	
6.01

6.02

	
315(b)                                                                                                             

	
5.11

	
315(c)                                                                                                             

	
6.01

	
315(d)                                                                                                             

	
6.01

	  	
6.02

	
315(e)                                                                                                             

	
5.12

	
316(a)                                                                                                             

	
5.09

5.10

	  	
7.04

	
316(b)                                                                                                             

	
5.06

5.10

	
316(c)                                                                                                             

	
7.02

	
317(a)                                                                                                             

	
5.04

	
317(b)                                                                                                             

	
3.04

	
318(a)                                                                                                             

	
11.07

	
  

	 

(1)           This Cross-Reference Table does not constitute part of the Indenture and shall not have any bearing on the interpretation of any of its terms or provisions.

 

  

  

  

 

TABLE OF CONTENTS

 

PAGE

	
ARTICLE 1 DEFINITIONS

	
1

	
Section 1.01

	
Certain Terms Defined

	
1

	ARTICLE 2 SECURITIES	
5

	
Section 2.01

	
Forms Generally

	
5

	
Section 2.02

	
Form of Trustee’s Certificate of Authentication

	
6

	
Section 2.03

	
Amount Unlimited; Issuable in Series

	
6

	
Section 2.04

	
Authentication and Delivery of Securities

	
8

	
Section 2.05

	
Execution of Securities

	
10

	
Section 2.06

	
Certificate of Authentication

	
10

	
Section 2.07

	
Denomination and Date of Securities; Payments of Interest

	
10

	
Section 2.08

	
Registration, Transfer and Exchange

	
11

	
Section 2.09

	
Mutilated, Defaced, Destroyed, Lost and Stolen Securities

	
13

	
Section 2.10

	
Cancellation of Securities; Destruction Thereof

	
14

	
Section 2.11

	
Temporary Securities

	
14

	ARTICLE 3 COVENANTS OF THE ISSUER	
15

	
Section 3.01

	
Payment of Principal and Interest

	
15

	
Section 3.02

	
Offices for Payments, Etc

	
15

	
Section 3.03

	
Appointment to Fill a Vacancy in Office of Trustee

	
16

	
Section 3.04

	
Paying Agents

	
16

	
Section 3.05

	
Written Statement to Trustee

	
16

	ARTICLE 4 SECURITYHOLDERS LISTS AND REPORTS BY THE ISSUER AND THE TRUSTEE	
17

	
Section 4.01

	
Issuer to Furnish Trustee Information as to Names and Addresses of Securityholders

	
17

	
Section 4.02

	
Reports by the Issuer

	
17

	
Section 4.03

	
Reports by the Trustee

	
17

	
Section 4.04

	
Preservation of Information; Communication with Securityholders

	
17

	ARTICLE 5 REMEDIES OF THE TRUSTEE AND SECURITYHOLDERS ON EVENT OF DEFAULT	
18

	
Section 5.01

	
Event of Default Defined; Acceleration of Maturity; Waiver of Default

	
18

	
Section 5.02

	
Collection of Debt by Trustee; Trustee May Prove Debt

	
20

	
Section 5.03

	
Application of Proceeds

	
22

	
Section 5.04

	
Suits for Enforcement

	
22

	
Section 5.05

	
Restoration of Rights on Abandonment of Proceedings

	
23

	
Section 5.06

	
Limitations on Suits by Securityholders

	
23

	
Section 5.07

	
Unconditional Right of Securityholders to Institute Certain Suits

	
23

	
Section 5.08

	
Powers and Remedies Cumulative; Delay or Omission Not Waiver of Default

	
24

	
Section 5.09

	
Control by Holders of Securities

	
24

	
Section 5.10

	
Waiver of Past Defaults

	
25

	
Section 5.11

	
Trustee to Give Notice of Default

	
25

	
Section 5.12

	
Right of Court to Require Filing of Undertaking to Pay Costs

	
25

 

  

i

  

 

 

	ARTICLE 6 CONCERNING THE TRUSTEE	
26

	
Section 6.01

	
Duties and Responsibilities of the Trustee; During Default; Prior to Default

	
26

	
Section 6.02

	
Certain Rights of the Trustee

	
26

	
Section 6.03

	
Trustee Not Responsible for Recitals, Disposition of Securities or Application of Proceeds Thereof

	
27

	
Section 6.04

	
Trustee and Agents May Hold Securities; Collections, Etc

	
28

	
Section 6.05

	
Moneys Held by Trustee

	
28

	
Section 6.06

	
Compensation and Indemnification of Trustee and Its Prior Claim

	
28

	
Section 6.07

	
Right of Trustee to Rely on Officer’s Certificate, Etc

	
28

	
Section 6.08

	
Disqualification; Conflicting Interests

	
29

	
Section 6.09

	
Persons Eligible for Appointment as Trustee

	
29

	
Section 6.10

	
Resignation and Removal; Appointment of Successor Trustee

	
29

	
Section 6.11

	
Acceptance of Appointment by Successor Trustee

	
30

	
Section 6.12

	
Merger, Conversion, Consolidation or Succession to Business of Trustee

	
31

	
Section 6.13

	
Preferential Collection of Claims Against the Issuer

	
32

	ARTICLE 7 CONCERNING THE SECURITYHOLDERS	
32

	
Section 7.01

	
Evidence of Action Taken by Securityholders

	
32

	
Section 7.02

	
Proof of Execution of Instruments and of Holding of Securities

	
32

	
Section 7.03

	
Holders to Be Treated as Owners

	
32

	
Section 7.04

	
Securities Owned by Issuer Deemed Not Outstanding

	
33

	
Section 7.05

	
Right of Revocation of Action Taken

	
33

	ARTICLE 8 SUPPLEMENTAL INDENTURES	
33

	
Section 8.01

	
Supplemental Indentures Without Consent of Securityholders

	
33

	
Section 8.02

	
Supplemental Indentures With Consent of Securityholders

	
35

	
Section 8.03

	
Effect of Supplemental Indenture

	
36

	
Section 8.04

	
Documents to Be Given to Trustee

	
36

	
Section 8.05

	
Notation on Securities in Respect of Supplemental Indentures

	
37

	ARTICLE 9 CONSOLIDATION, MERGER, SALE OR CONVEYANCE	
37

	
Section 9.01

	
Issuer May Consolidate, Etc., on Certain Terms

	
37

	
Section 9.02

	
Successor Issuer Substituted

	
38

 

 

  

ii

  

 

	ARTICLE 10 SATISFACTION AND DISCHARGE OF INDENTURE; DEFEASANCE; UNCLAIMED MONEYS	
38

	
Section 10.01

	
Satisfaction and Discharge of Indenture; Defeasance

	
38

	
Section 10.02

	
Application by Trustee of Funds Deposited for Payment of Securities

	
42

	
Section 10.03

	
Repayment of Moneys Held by Paying Agent

	
42

	
Section 10.04

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

	
42

	
Section 10.05

	
Indemnity for U.S. Government Obligations

	
42

	ARTICLE 11 MISCELLANEOUS PROVISIONS	
42

	
Section 11.01

	
No Recourse

	
42

	
Section 11.02

	
Provisions of Indenture for the Sole Benefit of Parties and Holders of Securities

	
43

	
Section 11.03

	
Successors and Assigns of Issuer Bound by Indenture

	
43

	
Section 11.04

	
Notices and Demands on Issuer, Trustee and Holders of Securities

	
43

	
Section 11.05

	
Officer’s Certificates and Opinions of Counsel; Statements to Be Contained Therein

	
44

	
Section 11.06

	
Payments Due on Saturdays, Sundays and Holidays

	
45

	
Section 11.07

	
Conflict of Any Provision of Indenture With Trust Indenture Act of 1939

	
45

	
Section 11.08

	
New York Law to Govern

	
45

	
Section 11.09

	
Counterparts

	
45

	
Section 11.10

	
Effect of Headings

	
45

	
Section 11.11

	
Actions by Successor

	
45

	
Section 11.12

	
Severability

	
46

	ARTICLE 12 REDEMPTION OF SECURITIES AND SINKING FUNDS	
46

	
Section 12.01

	
Applicability of Article

	
46

	
Section 12.02

	
Notice of Redemption; Partial Redemptions

	
46

	
Section 12.03

	
Payment of Securities Called for Redemption

	
47

	
Section 12.04

	
Exclusion of Certain Securities from Eligibility for Selection for Redemption

	
48

	
Section 12.05

	
Mandatory and Optional Sinking Funds

	
48

  

iii

  

 

THIS INDENTURE, dated as of _________ between CYREN Ltd., a public company registered under the Israel Companies Law (the “Issuer”), and ________, a _______ (the “Trustee”),

 

W I T N E S S E T H :

 

WHEREAS, the Issuer may from time to time duly authorize the issue of its unsecured debentures, notes or other evidences of indebtedness to be issued in one or more series (the “Securities”) up to such principal amount or amounts as may from time to time be authorized in accordance with the terms of this Indenture;

 

WHEREAS, the Issuer has duly authorized the execution and delivery of this Indenture to provide, among other things, for the authentication, delivery and administration of the Securities; and

 

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

 

NOW, THEREFORE:

 

In consideration of the premises and the purchases of the Securities by the holders thereof, the Issuer and the Trustee mutually covenant and agree for the equal and proportionate benefit of the respective holders from time to time of the Securities as follows:

 

ARTICLE 1

DEFINITIONS

 

Section 1.01                           Certain Terms Defined.  The following terms (except as otherwise expressly provided or unless the context otherwise clearly requires) for all purposes of this Indenture and of any indenture supplemental hereto shall have the respective meanings specified in this Section.  All other terms used in this Indenture that are defined in the Trust Indenture Act of 1939 or the definitions of which in the Securities Act of 1933 are referred to in the Trust Indenture Act of 1939, including terms defined therein by reference to the Securities Act of 1933 (except as herein otherwise expressly provided or unless the context otherwise clearly requires), shall have the meanings assigned to such terms in said Trust Indenture Act and in said Securities Act as in force at the date of this Indenture.  All accounting terms used herein and not expressly defined shall have the meanings assigned to such terms in accordance with generally accepted accounting principles, and the term “generally accepted accounting principles” means such accounting principles as are generally accepted in the United States at the time of any computation.  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.  The terms defined in this Article have the meanings assigned to them in this Article and include the plural as well as the singular.

 

“Board of Directors” means either the Board of Directors of the Issuer or any committee of such Board duly authorized to act on its behalf.

 

  

  

  

 

“Board Resolution” means a copy of one or more resolutions, certified by the secretary or an assistant secretary of the Issuer to have been duly adopted by the Board of Directors and to be in full force and effect, and delivered to the Trustee.

 

“Business Day” means, with respect to any Security, a day that in the city (or in any of the cities, if more than one) in which amounts are payable, as specified in the form of such Security, is not a day on which banking institutions are authorized or required by law or regulation to close.

 

“Commission” means the Securities and Exchange Commission, as from time to time constituted, created under the Securities Exchange Act of 1934, or if at any time after the execution and delivery of this Indenture such Commission is not existing and performing the duties now assigned to it under the Trust Indenture Act of 1939, then the body performing such duties on such date.

 

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

 

“Debt” of any Person means any debt for money borrowed which is created, assumed, incurred or guaranteed in any manner by such Person or for which such Person is otherwise responsible or liable, and shall expressly include any such guaranty thereof by such Person.  For the purpose of computing the amount of the Debt of any Person there shall be excluded all Debt of such Person for the payment or redemption or satisfaction of which money or securities (or evidences of such Debt, if permitted under the terms of the instrument creating such Debt) in the necessary amount shall have been deposited in trust with the proper depositary, whether upon or prior to the maturity or the date fixed for redemption of such Debt; and, in any instance where Debt is so excluded, for the purpose of computing the assets of such Person there shall be excluded the money, securities or evidences of Debt deposited by such Person in trust for the purpose of paying or satisfying such Debt.

 

“Depositary” means, with respect to the Securities of any series issuable or issued in the form of one or more Global Securities, the Person designated as Depositary by the Issuer pursuant to Section 2.04 until a successor Depositary shall have become such pursuant to the applicable provisions of this Indenture, and thereafter “Depositary” shall mean or include each Person who is then a Depositary hereunder, and if at any time there is more than one such Person, “Depositary” as used with respect to the Securities of any such series shall mean the Depositary with respect to the Global Securities of that series.

 

“Dollar” means the currency of the United States of America as at the time of payment is legal tender for the payment of public and private debts.

 

“Event of Default” means any event or condition specified as such in Section 5.01.

 

“Foreign Currency” means a currency issued by the government of a country other than the United States.

 

  

2

  

 

“Global Security” means a Security evidencing all or a part of a series of Securities, issued to the Depositary for such series in accordance with Section 2.04, and bearing the legend prescribed in Section 2.04.

 

“Holder”, “holder”, “holder of Securities”, “Securityholder” or other similar terms mean the Person in whose name such Security is registered in the Security register kept by the Issuer for that purpose in accordance with the terms hereof.

 

“Indenture” means this instrument as originally executed and delivered or, if amended or supplemented as herein provided, as so amended or supplemented or both, and shall include the forms and terms of particular series of Securities established as contemplated hereunder.

 

“interest”, unless the context otherwise requires, refers to interest, and when used with respect to non-interest bearing Securities, refers to interest payable after maturity, if any.

 

“Issuer” means CYREN Ltd., a public company registered under the Israel Companies Law, and, subject to Article 9, its successors and assigns.

 

“Issuer Order” means a written statement, request or order of the Issuer signed in its name by the chairman of the Board of Directors, the president or any vice president of the Issuer.

 

“Notice of Default” shall have the meaning set forth in Section 5.01(c).

 

“Officer’s Certificate” means a certificate signed by the chairman of the Board of Directors, the chief executive officer, the principal financial officer, the president, any vice president, the treasurer, the secretary or any assistant secretary of the Issuer and delivered to the Trustee.  Each such certificate shall comply with Section 314 of the Trust Indenture Act of 1939 and, except to the extent provided herein, shall include the statements provided for in Section 11.05.

 

“Opinion of Counsel” means an opinion in writing signed by the general corporate counsel or such other legal counsel who may be an employee of or counsel to the Issuer and who shall be satisfactory to the Trustee.  Each such opinion shall comply with Section 314 of the Trust Indenture Act of 1939 and shall include the statements provided for in Section 11.05, if and to the extent required hereby.

 

“Ordinary Shares” means ordinary shares, par value NIS 0.15 per share, of the Issuer as the same exists at the date of execution and delivery of this Indenture or as such ordinary shares may be reconstituted from time to time.

 

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

 

“Original Issue Discount Security” means any Security that provides for an amount less than the principal amount thereof to be due and payable upon a declaration of acceleration of the maturity thereof pursuant to Section 5.01.

 

  

3

  

 

“Outstanding”, when used with reference to Securities, shall, subject to the provisions of Section 7.04, mean, as of any particular time, all Securities authenticated and delivered by the Trustee under this Indenture, except

 

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

 

(b)           Securities, or portions thereof, for the payment or redemption of which cash or U.S. Government Obligations (as provided for in Section 10.01 (a) and Section 10.01(b)) in the necessary amount shall have been deposited in trust with the Trustee or with any paying agent (other than the Issuer) or shall have been set aside, segregated and held in trust by the Issuer for the Holders of such Securities (if the Issuer shall act as its own paying agent); provided, that if such Securities, or portions thereof, are to be redeemed prior to the maturity thereof, notice of such redemption shall have been given as herein provided, or provision satisfactory to the Trustee shall have been made for giving such notice; and

 

(c)           Securities in substitution for which other Securities shall have been authenticated and delivered, or which shall have been paid, pursuant to the terms of Section 2.09 (except with respect to any such Security as to which proof satisfactory to the Trustee is presented that such Security is held by a Person in whose hands such Security is a legal, valid and binding obligation of the Issuer), Securities converted into Ordinary Shares pursuant hereto and Securities not deemed outstanding pursuant to Section 12.02.

 

In determining whether the Holders of the requisite principal amount of Outstanding Securities of any or all series have given any request, demand, authorization, direction, notice, consent or waiver hereunder, the principal amount of an Original Issue Discount Security that shall be deemed to be Outstanding for such purposes shall be the amount of the principal thereof that would be due and payable as of the date of such determination upon a declaration of acceleration of the maturity thereof pursuant to Section 5.01.

 

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

 

“principal” whenever used with reference to the Securities or any Security or any portion thereof, shall be deemed to include “and premium, if any”.

 

“record date” shall have the meaning set forth in Section 2.07.

 

“Responsible Officer”, when used with respect to the Trustee, means the chairman of the board of directors, any vice chairman of the board of directors, the chairman of the trust committee, the chairman of the executive committee, any vice chairman of the executive committee, the president, any vice president, the cashier, the secretary, the treasurer, any trust officer, any assistant trust officer, any assistant vice president, any assistant cashier, any assistant secretary, any assistant treasurer, or any other officer or assistant officer of the Trustee customarily performing functions similar to those performed by the persons who at the time shall be such officers, respectively, or to whom any corporate trust matter is referred because of his or her knowledge of and familiarity with the particular subject.

 

“Security” or “Securities” has the meaning stated in the first recital of this Indenture, or, as the case may be, Securities that have been authenticated and delivered under this Indenture.

  

4

  

 

“Security Registrar” shall have the meaning set forth in Section 4.01(b).

 

“Subsidiary” means a corporation of which stock having a majority of the voting power under ordinary circumstances is owned, directly or indirectly, by the Issuer or by one or more subsidiaries of the Issuer, or by the Issuer and one or more subsidiaries of the Issuer.

 

“Trust Indenture Act of 1939” (except as otherwise provided in Sections 8.01 and 8.02) means the Trust Indenture Act of 1939 as in force at the date as of which this Indenture was originally executed.

 

“Trustee” means the Person identified as “Trustee” in the first paragraph hereof and, subject to the provisions of Article 6, shall also include any successor trustee.  “Trustee” shall also mean or include each Person who is then a trustee hereunder and if at any time there is more than one such Person, “Trustee” as used with respect to the Securities of any series shall mean the trustee with respect to the Securities of such series.

 

“U.S. Government Obligation” means (a) a direct obligation of the United States of America, backed by its full faith and credit, or (b) an obligation of a Person controlled or supervised by and acting as an agency or instrumentality of the United States of America, the payment of which is unconditionally guaranteed as a full faith and credit obligation by the United States of America.

 

“vice president”, when used with respect to the Issuer or the Trustee, means any vice president, whether or not designated by a number or a word or words added before or after the title of “vice president”.

 

“Yield to Maturity” means the yield to maturity on a series of securities, calculated at the time of issuance of such series, or, if applicable, at the most recent redetermination of interest on such series, and calculated in accordance with accepted financial practice.

 

ARTICLE 2

SECURITIES

 

Section 2.01                           Forms Generally.  The Securities of each series shall be substantially in such form (not inconsistent with this Indenture) as shall be established by or pursuant to one or more Board Resolutions (as set forth in a Board Resolution or, to the extent established pursuant to (rather than set forth in) a Board Resolution, an Officer’s Certificate detailing such establishment) or in one or more indentures supplemental hereto, in each case with such appropriate insertions, omissions, substitutions and other variations as are required or permitted by this Indenture and may have imprinted or otherwise reproduced thereon such legend or legends or endorsements, not inconsistent with the provisions of this Indenture, as may be required to comply with any law or with any rules or regulations pursuant thereto, or with any rules of any securities exchange or to conform to general usage, all as may be determined by the officers executing such Securities as evidenced by their execution of such Securities.

 

  

5

  

 

The definitive Securities shall be printed, lithographed or engraved on steel engraved borders or may be produced in any other manner, all as determined by the officers executing such Securities as evidenced by their execution of such Securities.

 

Section 2.02                           Form of Trustee’s Certificate of Authentication.  The Trustee’s certificate of authentication on all Securities shall be in substantially the following form:

 

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

 

	 	 
____________________________

as Trustee

 

By:         ______________________

 
          Authorized Officer

 

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

 

The Securities may be issued in one or more series.  The terms of a series of Securities shall be established prior to the initial issuance thereof in or pursuant to one or more Board Resolutions, or, to the extent established pursuant to (rather than set forth in) a Board Resolution, in an Officer’s Certificate detailing such establishment and/or established in one or more indentures supplemental hereto.  The terms of such series reflected in such Board Resolution, Officer’s Certificate, or supplemental indenture may include the following or any additional or different terms:

 

(a)           the designation of the Securities of the series (which may be part of a series of Securities previously issued);

 

(b)           the terms and conditions, if applicable, upon which conversion or exchange of the Securities into Ordinary Shares will be effected, including the initial conversion or exchange price or rate and any adjustments thereto, the conversion or exchange period and other provisions in addition to or in lieu of those described herein;

 

(c)           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 2.08, 2.09, 2.11, 8.05 or 12.03);

 

  

6

  

 

(d)           if other than Dollars, the Foreign Currency in which the Securities of that series are denominated;

 

(e)           any date on which the principal of the Securities of the series is payable and the right, if any, to extend such date or dates;

 

(f)           the rate or rates at which the Securities of the series shall bear interest, if any, the record date or dates for the determination of holders to whom interest is payable, the date or dates from which such interest shall accrue and on which such interest shall be payable and/or the method by which such rate or rates or date or dates shall be determined, and the right, if any, to extend the interest payment periods and the duration of that extension;

 

(g)           the place or places where the principal of and any interest on Securities of the series shall be payable (if other than as provided in Section 3.02);

 

(h)           the price or prices at which, the period or periods within which and the terms and conditions upon which Securities of the series may be redeemed, in whole or in part, at the option of the Issuer, pursuant to any sinking fund or otherwise;

 

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

 

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

 

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

 

(l)           if other than the currency in which the Securities of that series are denominated, the currency in which payment of the principal of or interest on the Securities of such series shall be payable;

 

(m)           if the principal of or interest on the Securities of the series is to be payable, at the election of the Issuer or a Holder thereof, in a currency other than that in which the Securities are denominated, the period or periods within which, and the terms and conditions upon which, such election may be made;

 

(n)           if the amount of payments of principal of and interest on the Securities of the series may be determined with reference to an index based on a currency other than that in which the Securities of the series are denominated, or by reference to one or more currency exchange rates, securities or baskets of securities, commodity prices or indices, the manner in which such amounts shall be determined;

 

  

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(o)           if Sections 10.01(b) or 10.01(c) are inapplicable to Securities of such series;

 

(p)           whether and under what circumstances the Issuer will pay additional amounts on the Securities of any series in respect of any tax, assessment or governmental charge withheld or deducted and, if so, whether the Issuer will have the option to redeem such Securities rather than pay such additional amounts;

 

(q)           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 terms of such certificates, documents or conditions;

 

(r)           any trustees, authenticating or paying agents, transfer agents or registrars or any other agents with respect to the Securities of such series;

 

(s)           any other events of default or covenants with respect to the Securities of such series in addition to or in lieu of those contained in this Indenture;

 

(t)           if the Securities of the series may be issued in exchange for surrendered Securities of another series, or for other securities of the Issuer, pursuant to the terms of such Securities or securities or of any agreement entered into by the Issuer, the ratio of the principal amount of the Securities of the series to be issued to the principal amount of the Securities or securities to be surrendered in exchange, and any other material terms of the exchange; and

 

(u)           any other terms of the series.

 

The Issuer may from time to time, without notice to or the consent of the holders of any series of Securities, create and issue further Securities of any such series ranking equally with the Securities of such series in all respects (or in all respects other than (1) the payment of interest accruing prior to the issue date of such further Securities or (2) the first payment of interest following the issue date of such further Securities).  Such further Securities may be consolidated and form a single series with the Securities of such series and have the same terms as to status, redemption or otherwise as the Securities of such series.

 

Section 2.04                           Authentication and Delivery of Securities.  The Issuer may deliver Securities of any series executed by the Issuer to the Trustee for authentication together with the applicable documents referred to below in this Section, and the Trustee shall thereupon authenticate and deliver such Securities to or upon the order of the Issuer (contained in the Issuer Order referred to below in this Section) or pursuant to such procedures acceptable to the Trustee and to such recipients as may be specified from time to time by an Issuer Order.  The maturity date, original issue date, interest rate and any other terms of the Securities of such series shall be determined by or pursuant to such Issuer Order and procedures.  If provided for in such procedures, such Issuer Order may authorize authentication and delivery pursuant to oral instructions from the Issuer or its duly authorized agent, which instructions shall be promptly confirmed in writing.  In authenticating such Securities and accepting the additional responsibilities under this Indenture in relation to such Securities, the Trustee shall be entitled to receive, and (subject to Section 6.01) shall be fully protected in relying upon:

 

  

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(a)           an Issuer Order requesting such authentication and setting forth delivery instructions if the Securities are not to be delivered to the Issuer;

 

(b)           any Board Resolution, Officer’s Certificate and/or executed supplemental indenture referred to in Sections 2.01 and 2.03 by or pursuant to which the forms and terms of the Securities were established;

 

(c)           an Officer’s Certificate setting forth the form or forms and terms of the Securities stating that the form or forms and terms of the Securities have been established pursuant to Sections 2.01 and 2.03 and comply with this Indenture, and covering such other matters as the Trustee may reasonably request; and

 

(d)           an Opinion of Counsel to the effect that:

 

(i)           the form or forms and terms of such Securities have been established pursuant to Sections 2.01 and 2.03 and comply with this Indenture,

 

(ii)           the authentication and delivery of such Securities by the Trustee are authorized under the provisions of this Indenture,

 

(iii)           such Securities when authenticated and delivered by the Trustee and issued by the Issuer in the manner and subject to any conditions specified in such Opinion of Counsel, will constitute valid and binding obligations of the Issuer, and

 

(iv)           all laws and requirements in respect of the execution and delivery by the Issuer of the Securities have been complied with,

 

and covering such other matters as the Trustee may reasonably request.

 

The Trustee shall have the right to decline to authenticate and deliver any Securities under this Section if the Trustee, being advised by counsel, determines that such action may not lawfully be taken by the Issuer or if the Trustee in good faith by its board of directors or board of trustees, executive committee, or a trust committee of directors or trustees or Responsible Officers shall determine that such action would expose the Trustee to personal liability to existing Holders or would affect the Trustee’s own rights, duties or immunities under the Securities, this Indenture or otherwise.

 

The Issuer shall execute and the Trustee shall, in accordance with this Section with respect to the Securities of a series, authenticate and deliver one or more Global Securities that (i) shall represent and shall be denominated in an amount equal to the aggregate principal amount of all of the Securities of such series issued and not yet cancelled, (ii) shall be registered in the name of the Depositary for such Global Security or Securities or the nominee of such Depositary, (iii) shall be delivered by the Trustee to such Depositary or pursuant to such Depositary’s instructions and (iv) shall bear a legend substantially to the following effect: “Unless and until it is exchanged in whole or in part for Securities in definitive registered form, this Security may not be transferred except as a whole by the Depositary to the nominee of the Depositary or by a nominee of the Depositary to the Depositary or another nominee of the Depositary or by the Depositary or any such nominee to a successor Depositary or a nominee of such successor Depositary.”

 

  

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Each Depositary designated pursuant to this Section must, at the time of its designation and at all times while it serves as Depositary, be a clearing agency registered under the Securities Exchange Act of 1934 and any other applicable statute or regulation.

 

Section 2.05                           Execution of Securities.  The Securities shall be signed on behalf of the Issuer by the chairman of its Board of Directors, any vice chairman of its Board of Directors, its chief executive officer, its principal financial officer, its president, any vice president or its treasurer.  Such signatures may be the manual or facsimile signatures of the present or any future such officers.  Typographical and other minor errors or defects in any such reproduction of any such signature shall not affect the validity or enforceability of any Security that has been duly authenticated and delivered by the Trustee.

 

In case any officer of the Issuer who shall have signed any of the Securities shall cease to be such officer before the Security so signed shall be authenticated and delivered by the Trustee or disposed of by the Issuer, such Security nevertheless may be authenticated and delivered or disposed of as though the person who signed such Security had not ceased to be such officer of the Issuer; and any Security may be signed on behalf of the Issuer by such persons as, at the actual date of the execution of such Security, shall be the proper officers of the Issuer, although at the date of the execution and delivery of this Indenture any such person was not such an officer.

 

Section 2.06                           Certificate of Authentication.  Only such Securities as shall bear thereon a certificate of authentication substantially in the form hereinbefore recited, executed by the Trustee by the manual signature of one of its authorized officers, shall be entitled to the benefits of this Indenture or be valid or obligatory for any purpose.  The execution of such certificate by the Trustee upon any Security executed by the Issuer shall be conclusive evidence that the Security so authenticated has been duly authenticated and delivered hereunder and that the Holder is entitled to the benefits of this Indenture.

 

Section 2.07                           Denomination and Date of Securities; Payments of Interest.  The Securities of each series shall be issuable in denominations established as contemplated by Section 2.03 or, if not so established, in denominations of $1,000 and any integral multiple thereof.  The Securities of each series shall be numbered, lettered or otherwise distinguished in such manner or in accordance with such plan as the officers of the Issuer executing the same may determine with the approval of the Trustee, as evidenced by the execution and authentication thereof.  Unless otherwise indicated in a Board Resolution, Officer’s Certificate or supplemental indenture for a particular series, interest will be calculated on the basis of a 360-day year of twelve 30-day months.

 

  

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Each Security shall be dated the date of its authentication.  The Securities of each series shall bear interest, if any, from the date, and such interest shall be payable on the dates, established as contemplated by Section 2.03.

 

The Person in whose name any Security of any series is registered at the close of business on any record date applicable to a particular series with respect to any interest payment date for such series shall be entitled to receive the interest, if any, payable on such interest payment date notwithstanding any transfer, exchange or conversion of such Security subsequent to the record date and prior to such interest payment date, except if and to the extent the Issuer shall default in the payment of the interest due on such interest payment date for such series, in which case such defaulted interest shall be paid to the Persons in whose names Outstanding Securities for such series are registered at the close of business on a subsequent record date (which shall be not less than five Business Days prior to the date of payment of such defaulted interest) established by notice given by mail by or on behalf of the Issuer to the Holders of Securities not less than 15 days preceding such subsequent record date.  The term “record date” as used with respect to any interest payment date (except a date for payment of defaulted interest) for the Securities of any series shall mean the date specified as such in the terms of the Securities of such series established as contemplated by Section 2.03, or, if no such date is so established, if such interest payment date is the first day of a calendar month, the 15th day of the immediately preceding calendar month or, if such interest payment date is the 15th day of a calendar month, the first day of such calendar month, whether or not such record date is a Business Day.

 

Section 2.08                           Registration, Transfer and Exchange.  The Issuer will keep at each office or agency to be maintained for the purpose as provided in Section 3.02 for each series of Securities a register or registers in which, subject to such reasonable regulations as it may prescribe, it will provide for the registration of Securities of such series and the registration of transfer of Securities of such series.  Such register shall be in written form in the English language or in any other form capable of being converted into such form within a reasonable time.  At all reasonable times such register or registers shall be open for inspection by the Trustee.

 

Upon due presentation for registration of transfer of any Security of any series at any such office or agency to be maintained for the purpose as provided in Section 3.02, the Issuer shall execute and the Trustee shall authenticate and deliver in the name of the transferee or transferees a new Security or Securities of the same series, maturity date, interest rate and original issue date in authorized denominations for a like aggregate principal amount.

 

At the option of the Holder thereof, Securities of any series (except a Global Security) may be exchanged for a Security or Securities of such series having authorized denominations and an equal aggregate principal amount, upon surrender of such Securities to be exchanged at the agency of the Issuer that shall be maintained for such purpose in accordance with Section 3.02 and upon payment, if the Issuer shall so require, of the charges hereinafter provided.  Whenever any Securities are so surrendered for exchange, the Issuer shall execute, and the Trustee shall authenticate and deliver, the Securities which the Holder making the exchange is entitled to receive.  All Securities surrendered upon any exchange or transfer provided for in this Indenture shall be promptly cancelled and disposed of by the Trustee and the Trustee will deliver a certificate of disposition thereof to the Issuer.

 

  

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All Securities presented for registration of transfer, exchange, redemption or payment shall (if so required by the Issuer or the Trustee) be duly endorsed by, or be accompanied by a written instrument or instruments of transfer in form satisfactory to the Issuer and the Trustee duly executed by, the Holder or his or her attorney duly authorized in writing.

 

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

 

The Issuer shall not be required to exchange or register a transfer of (a) any Securities of any series for a period of 15 days immediately preceding the first mailing of notice of redemption of Securities of such series to be redeemed or (b) any Securities selected, called or being called for redemption, in whole or in part, except, in the case of any Security to be redeemed in part, the portion thereof not so to be redeemed.

 

Notwithstanding any other provision of this Section 2.08, unless and until it is exchanged in whole or in part for Securities in definitive registered form, a Global Security representing all or a portion of the Securities of a series may not be transferred except as a whole by the Depositary for such series to a nominee of such Depositary or by a nominee of such Depositary to such Depositary or another nominee of such Depositary or by such Depositary or any such nominee to a successor Depositary for such series or a nominee of such successor Depositary.

 

If at any time the Depositary for the Securities of a series notifies the Issuer that it is unwilling or unable to continue as Depositary for the Securities of such series or if at any time the Depositary for the Securities of a series shall no longer be eligible under Section 2.04, the Issuer shall appoint a successor Depositary with respect to the Securities of such series.  If a successor Depositary for the Securities of such series is not appointed by the Issuer within 90 days after the Issuer receives such notice or becomes aware of such ineligibility, the Issuer’s determination pursuant to Section 2.03 that the Securities of such series be represented by a Global Security shall no longer be effective and the Issuer will execute, and the Trustee, upon receipt of an Officer’s Certificate for the authentication and delivery of definitive Securities of such series, will authenticate and deliver, Securities of such series in definitive registered form, in any authorized denominations, in an aggregate principal amount equal to the principal amount of the Global Security or Securities representing the Securities of such series, in exchange for such Global Security or Securities.

 

The Issuer may at any time and in its sole discretion determine that the Securities of any series issued in the form of one or more Global Securities shall no longer be represented by a Global Security or Securities.  In such event the Issuer will execute, and the Trustee, upon receipt of an Officer’s Certificate for the authentication and delivery of definitive Securities of such series, will authenticate and deliver, Securities of such series in definitive registered form, in any authorized denominations, in an aggregate principal amount equal to the principal amount of the Global Security or Securities representing such series, in exchange for such Global Security or Securities.

 

The Depositary for such Global Security may surrender such Global Security in exchange in whole or in part for Securities of the same series in definitive registered form in accordance with the two preceding paragraphs or on such other terms as are acceptable to the Issuer and such Depositary.  Thereupon, the Issuer shall execute, and the Trustee shall authenticate and deliver, without service charge,

 

  

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

 

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

 

Upon the exchange of a Global Security for Securities in definitive registered form, in authorized denominations, such Global Security shall be cancelled by the Trustee.  Securities in definitive registered form issued in exchange for a Global Security pursuant to this Section 2.08 shall be registered in such names and in such authorized denominations as the Depositary for such Global Security, pursuant to instructions from its direct or indirect participants or otherwise, shall instruct the Trustee.  The Trustee shall deliver such Securities to or as directed by the Persons in whose names such Securities are so registered.

 

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

 

Section 2.09                           Mutilated, Defaced, Destroyed, Lost and Stolen Securities.  In case any temporary or definitive Security shall become mutilated, defaced or be destroyed, lost or stolen, the Issuer in its discretion may execute, and upon the written request of any officer of the Issuer, the Trustee shall authenticate and deliver a new Security of the same series, maturity date, interest rate and original issue date, bearing a number or other distinguishing symbol not contemporaneously outstanding, in exchange and substitution for the mutilated or defaced Security, or in lieu of and substitution for the Security so destroyed, lost or stolen.  In every case the applicant for a substitute Security shall furnish to the Issuer and to the Trustee and any agent of the Issuer or the Trustee such security or indemnity as may be required by them to indemnify and defend and to save each of them harmless and, in every case of destruction, loss or theft, evidence to their satisfaction of the destruction, loss or theft of such Security and of the ownership thereof and in the case of mutilation or defacement shall surrender the Security to the Trustee.

 

Upon the issuance of any substitute Security, the Issuer 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.  In case any Security which has matured or is about to mature or has been called for redemption in full, or is being surrendered for conversion in full, shall become mutilated or defaced or be destroyed, lost or stolen, the Issuer may, instead of issuing a substitute Security (with the Holder’s consent, in the case of convertible Securities), pay or authorize the payment of the same or convert, or authorize conversion of the same (without surrender thereof except in the case of a mutilated or defaced Security), if the applicant for such payment shall furnish to the Issuer and to the Trustee and any agent of the Issuer or the Trustee such security or indemnity as any of them may require to save each of them harmless, and, in every case of destruction, loss or theft, the applicant shall also furnish to the Issuer and the Trustee and any agent of the Issuer or the Trustee evidence to their satisfaction of the destruction, loss or theft of such Security and of the ownership thereof.

 

  

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Every substitute Security of any series issued pursuant to the provisions of this Section by virtue of the fact that any such Security is destroyed, lost or stolen shall constitute an additional contractual obligation of the Issuer, whether or not the destroyed, lost or stolen Security shall be at any time enforceable by anyone and shall be entitled to all the benefits of (but shall be subject to all the limitations of rights set forth in) this Indenture equally and proportionately with any and all other Securities of such series duly authenticated and delivered hereunder.  All Securities shall be held and owned upon the express condition that, to the extent permitted by law, the foregoing provisions are exclusive with respect to the replacement or payment or conversion of mutilated, defaced or destroyed, lost or stolen Securities and shall preclude any and all other rights or remedies notwithstanding any law or statute existing or hereafter enacted to the contrary with respect to the replacement or payment of negotiable instruments or other securities without their surrender.

 

Section 2.10                           Cancellation of Securities; Destruction Thereof.  All Securities surrendered for exchange for Securities of the same series or for payment, redemption, registration of transfer, conversion or for credit against any payment in respect of a sinking or analogous fund, if surrendered to the Issuer or any agent of the Issuer or the Trustee, shall be delivered to the Trustee for cancellation or, if surrendered to the Trustee, shall be cancelled by it; and no Securities shall be issued in lieu thereof except as expressly permitted by any of the provisions of this Indenture.  The Trustee shall dispose of cancelled Securities held by it and deliver a certificate of disposition to the Issuer.  If the Issuer shall acquire any of the Securities, such acquisition shall not operate as a redemption or satisfaction of the Debt represented by such Securities unless and until the same are delivered to the Trustee for cancellation.

 

Section 2.11                           Temporary Securities.  Pending the preparation of definitive Securities for any series, the Issuer may execute and the Trustee shall authenticate and deliver temporary Securities for such series (printed, lithographed, typewritten or otherwise reproduced, in each case in form satisfactory to the Trustee).  Temporary Securities of any series shall be issuable in any authorized denomination, and substantially in the form of the definitive Securities of such series but with such omissions, insertions and variations as may be appropriate for temporary Securities, all as may be determined by the Issuer with the concurrence of the Trustee as evidenced by the execution and authentication thereof.  Temporary Securities may contain such reference to any provisions of this Indenture as may be appropriate.  Every temporary Security shall be executed by the Issuer and be authenticated by the Trustee upon the same conditions and in substantially the same manner, and with like effect, as the definitive Securities.  Without unreasonable delay the Issuer shall execute and shall furnish definitive Securities of such series and thereupon temporary Securities of such series may be surrendered in exchange therefor without charge at each office or agency to be maintained by the Issuer for that purpose pursuant to Section 3.02 and the Trustee shall authenticate and deliver in exchange for such temporary Securities of such series an equal aggregate principal amount of definitive Securities of the same series having authorized denominations.  Until so exchanged, the temporary Securities of any series shall be entitled to the same benefits under this Indenture as definitive Securities of such series, unless the benefits of the temporary Securities are limited pursuant to Section 2.03.

 

  

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ARTICLE 3

COVENANTS OF THE ISSUER

 

Section 3.01                           Payment of Principal and Interest.  The Issuer covenants and agrees for the benefit of each series of Securities that it will duly and punctually pay or cause to be paid the principal of, and interest on, each of the Securities of such series (together with any additional amounts payable pursuant to the terms of such Securities) at the place or places, at the respective times and in the manner provided in such Securities and in this Indenture.  The interest on Securities (together with any additional amounts payable pursuant to the terms of such Securities) shall be payable only to or upon the written order of the Holders thereof and at the option of the Issuer may be paid by mailing checks for such interest payable to or upon the written order of such Holders at their last addresses as they appear on the Security register of the Issuer.

 

Section 3.02                           Offices for Payments, Etc.  The Issuer will maintain (i) in _______, an agency where the Securities of each series may be presented for payment, an agency where the Securities of each series may be presented for exchange and conversion, if applicable, as provided in this Indenture and an agency where the Securities of each series may be presented for registration of transfer as in this Indenture provided and (ii) such further agencies in such places as may be determined for the Securities of such series pursuant to Section 2.03.

 

The Issuer will maintain in __________, an agency where notices and demands to or upon the Issuer in respect of the Securities of any series or this Indenture may be served.

 

The Issuer will give to the Trustee written notice of the location of each such agency and of any change of location thereof.  In case the Issuer shall fail to maintain any agency required by this Section to be located in __________, or shall fail to give such notice of the location or of any change in the location of any of the above agencies, presentations and demands may be made and notices may be served at the Corporate Trust Office of the Trustee.

 

The Issuer may from time to time designate one or more additional agencies where the Securities of a series may be presented for payment, where the Securities of that series may be presented for exchange or conversion, if applicable, as provided in this Indenture and pursuant to Section 2.03 and where the Securities of that series may be presented for registration of transfer as in this Indenture provided, and the Issuer may from time to time rescind any such designation, as the Issuer may deem desirable or expedient; provided, however, that no such designation or rescission shall in any manner relieve the Issuer of its obligation to maintain the agencies provided for in this Section.  The Issuer will give to the Trustee prompt written notice of any such designation or rescission thereof.

 

  

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Section 3.03                           Appointment to Fill a Vacancy in Office of Trustee.  The Issuer, whenever necessary to avoid or fill a vacancy in the office of Trustee, will appoint, in the manner provided in Section 6.10, a Trustee, so that there shall at all times be a Trustee with respect to each series of Securities hereunder.

 

Section 3.04                           Paying Agents.  Whenever the Issuer shall appoint a paying agent other than the Trustee with respect to the Securities of any series, it 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,

 

(a)           that it will hold all sums received by it as such agent for the payment of the principal of or interest on the Securities of such series (whether such sums have been paid to it by the Issuer or by any other obligor on the Securities of such series) in trust for the benefit of the Holders of the Securities of such series or of the Trustee,

 

(b)           that it will give the Trustee notice of any failure by the Issuer (or by any other obligor on the Securities of such series) to make any payment of the principal of or interest on the Securities of such series when the same shall be due and payable, and

 

(c)           that at any time during the continuance of any such failure, upon the written request of the Trustee, it will forthwith pay to the Trustee all sums so held in trust by such paying agent.

 

The Issuer will, on or prior to each due date of the principal of or interest on the Securities of such series, deposit with the paying agent a sum sufficient to pay such principal or interest so becoming due, and (unless such paying agent is the Trustee) the Issuer will promptly notify the Trustee of any failure to take such action.

 

If the Issuer shall act as its own paying agent with respect to the Securities of any series, it will, on or before each due date of the principal of or interest on the Securities of such series, set aside, segregate and hold in trust for the benefit of the Holders of the Securities of such series a sum sufficient to pay such principal or interest so becoming due.  The Issuer will promptly notify the Trustee of any failure to take such action.

 

Anything in this Section to the contrary notwithstanding, but subject to Section 10.01, the Issuer may at any time, for the purpose of obtaining a satisfaction and discharge with respect to one or more or all series of Securities hereunder, or for any other reason, pay or cause to be paid to the Trustee all sums held in trust for any such series by the Issuer or any paying agent hereunder, as required by this Section, such sums to be held by the Trustee upon the trusts herein contained.

 

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 Sections 10.03 and 10.04.

 

Section 3.05                           Written Statement to Trustee.  So long as any Securities are Outstanding hereunder, the Issuer will deliver to the Trustee, within 120 days after the end of each fiscal year of the Issuer ending after the date hereof, a written statement covering the previous fiscal year, signed by two of its officers (which need not comply with Section 11.05), stating that in the course of the performance of their duties as officers of the Issuer they would normally have knowledge of any default by the Issuer in the performance or fulfillment of any covenant, agreement or condition contained in this Indenture, stating whether or not they have knowledge of any such default and, if so, specifying each such default of which the signers have knowledge and the nature thereof.

 

  

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ARTICLE 4

SECURITYHOLDERS LISTS AND REPORTS BY THE ISSUER AND THE TRUSTEE

 

Section 4.01                           Issuer to Furnish Trustee Information as to Names and Addresses of Securityholders.  The Issuer covenants and agrees that it will furnish or cause to be furnished to the Trustee a list in such form as the Trustee may reasonably require of the names and addresses of the Holders of the Securities of each series pursuant to Section 312 of the Trust Indenture Act of 1939:

 

(a)           semiannually and not more than 15 days after each record date for the payment of interest on such Securities, as hereinabove specified, as of such record date and on dates to be determined pursuant to Section 2.03 for non-interest bearing Securities in each year, and

 

(b)           at such other times as the Trustee may request in writing, within 30 days after receipt by the Issuer of any such request as of a date not more than 15 days prior to the time such information is furnished, provided, that, if and so long as the Trustee shall be the Security registrar (the “Security Registrar”) for such series, such list shall not be required to be furnished.

 

Section 4.02                           Reports by the Issuer.  The Issuer covenants to comply with Section 314(a) of the Trust Indenture Act insofar as it relates to information, documentations, and other reports which the Issuer may be required to file with the Commission pursuant to Section 13 or Section 15(d) of the Securities Exchange Act of 1934.

 

Section 4.03                           Reports by the Trustee.  Any Trustee’s report required under Section 313(a) of the Trust Indenture Act of 1939 shall be transmitted on or before ______ in each year following the date hereof, so long as any Securities are Outstanding hereunder, and shall be dated as of a date convenient to the Trustee but no more than 60 nor less than 45 days prior thereto.  The Trustee shall comply with Sections 313(b), 313(c) and 313(d) of the Trust Indenture Act.

 

Section 4.04                           Preservation of Information; Communication with Securityholders.  (a) The Trustee shall preserve, in as current a form as is reasonably practicable, all information as to the names and addresses of the holders of Securities contained in the most recent list furnished to it as provided in Section 4.01 and as to the names and addresses of holders of Securities received by the Trustee in its capacity as Security Registrar (if acting in such capacity).

 

(b)           The Trustee may destroy any list furnished to it as provided in Section 4.01 upon receipt of a new list so furnished.

 

(c)           Securityholders may communicate as provided in Section 312(b) of the Trust Indenture Act with other Securityholders with respect to their rights under this Indenture or under the Securities.  The Issuer, the Trustee, the Security Registrar and any other Person shall have the protection of Section 312(c) of the Trust Indenture Act.

 

  

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ARTICLE 5

REMEDIES OF THE TRUSTEE AND SECURITYHOLDERS ON EVENT OF DEFAULT

 

Section 5.01                           Event of Default Defined; Acceleration of Maturity; Waiver of Default.  “Event of Default”, with respect to Securities of any series wherever used herein, means each one of the following events which shall have occurred and be continuing (whatever the reason for such Event of Default and whether it shall be voluntary or involuntary or be effected by operation of law or pursuant to any judgment, decree or order of any court or any order, rule or regulation of any administrative or governmental body):

 

(a)           default in the payment of any installment of interest upon any of the Securities of such series as and when the same shall become due and payable, and continuance of such default for a period of 30 days (or such other period as may be established for the Securities of such series as contemplated by Section 2.03); or

 

(b)           default in the payment of all or any part of the principal on any of the Securities of such series as and when the same shall become due and payable either at maturity, upon redemption, by declaration or otherwise (and, if established for the Securities of such series as contemplated by Section 2.03, the continuance of such default for a specified period); or

 

(c)           default in the performance, or breach, of any covenant or agreement of the Issuer in respect of the Securities of such series (other than a covenant or agreement in respect of the Securities of such series a default in the performance or breach of which is elsewhere in this Section specifically dealt with), and continuance of such default or breach for a period of 90 days after there has been given, by registered or certified mail, to the Issuer by the Trustee or to the Issuer and the Trustee by the Holders of at least 25% in principal amount of the Outstanding Securities of all series affected thereby, a written notice specifying such default or breach and requiring it to be remedied and stating that such notice is a “Notice of Default” hereunder; or

 

(d)           a court having jurisdiction in the premises shall enter a decree or order for relief in respect of the Issuer in an involuntary case under any applicable bankruptcy, insolvency or other similar law now or hereafter in effect, or appointing a receiver, liquidator, assignee, custodian, trustee or sequestrator (or similar official) of the Issuer or for all or substantially all of its property and assets or ordering the winding up or liquidation of its affairs, and such decree or order shall remain unstayed and in effect for a period of 90 consecutive days; or

 

(e)           the Issuer shall commence a voluntary case under any applicable bankruptcy, insolvency or other similar law now or hereafter in effect, or consent to the entry of an order for relief in an involuntary case under any such law, or consent to the appointment of or taking possession by a receiver, liquidator, assignee, custodian, trustee or sequestrator (or similar official) of the Issuer or for any substantial part of its property and assets, or make any general assignment for the benefit of creditors; or

 

(f)           any other Event of Default provided for in such series of Securities.

 

  

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If an Event of Default described in clauses (a), (b), (c) or (f) occurs and is continuing, then, and in each and every such case, unless the principal of all of the Securities of such series shall have already become due and payable, either the Trustee or the Holders of not less than 25% in aggregate principal amount of the Securities of such series then Outstanding hereunder (each such series voting as a separate class) by notice in writing to the Issuer (and also to the Trustee if given by Securityholders), may declare the entire principal (or, if the Securities of such series are Original Issue Discount Securities, such portion of the principal amount as may be specified in the terms of such series) of all Securities of such series and the interest accrued thereon, if any, to be due and payable immediately, and upon any such declaration the same shall become immediately due and payable.  If an Event of Default described in clauses (d) or (e) occurs and is continuing, then and in each and every such case, the entire principal (or, if any Securities are Original Issue Discount Securities, such portion of the principal as may be specified in the terms thereof) of all the Securities then Outstanding and interest accrued thereon, if any, shall become immediately due and payable.

 

The foregoing provisions, however, are subject to the condition that if, at any time after the principal of the Securities of any series shall have been so declared due and payable, and before any judgment or decree for the payment of the moneys due shall have been obtained or entered as hereinafter provided, the Issuer shall pay or shall deposit with the Trustee a sum sufficient to pay all matured installments of interest upon all the Securities of such series and the principal of any and all Securities of such series which shall have become due otherwise than by acceleration (with interest upon such principal and, to the extent that payment of such interest is enforceable under applicable law, on overdue installments of interest, at the same rate as the rate of interest specified in the Securities of such series to the date of such payment or deposit) and such amount as shall be sufficient to cover reasonable compensation to the Trustee, its agents, attorneys and counsel, and all other expenses and liabilities incurred, and all advances made, by the Trustee except as a result of negligence or bad faith, and if any and all Events of Default under the Indenture with respect to such series, other than the non-payment of the principal of Securities of such series which shall have become due solely by such acceleration, shall have been cured, waived or otherwise remedied as provided herein, then and in every such case the Holders of a majority in aggregate principal amount of all the Securities of such series then Outstanding, by written notice to the Issuer and to the Trustee, may waive all defaults with respect to such series and rescind and annul such declaration and its consequences, but no such waiver or rescission and annulment shall extend to or shall affect any subsequent default or shall impair any right consequent thereon.

 

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

 

  

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Section 5.02                           Collection of Debt by Trustee; Trustee May Prove Debt.  The Issuer covenants that (a) in case default shall be made in the payment of any installment of interest on any of the Securities of any series when such interest shall have become due and payable, and such default shall have continued for a period of 30 days or (b) in case default shall be made in the payment of all or any part of the principal of any of the Securities of any series when the same shall have become due and payable, whether upon maturity of the Securities of such series or upon any redemption or by declaration or otherwise--then, upon demand of the Trustee, the Issuer will pay to the Trustee for the benefit of the Holders of the Securities of such series the whole amount that then shall have become due and payable on all Securities of such series for principal or interest, as the case may be (with interest to the date of such payment upon the overdue principal and, to the extent that payment of such interest is enforceable under applicable law, on overdue installments of interest at the same rate as the rate of interest or Yield to Maturity (in the case of Original Issue Discount Securities) specified in the Securities of such series); and, in addition thereto, such further amount as shall be sufficient to cover the costs and expenses of collection, including reasonable compensation to the Trustee and each predecessor trustee, their respective agents, attorneys and counsel, and any expenses and liabilities incurred, and all advances made, by the Trustee and each predecessor trustee except as a result of its negligence or bad faith.

 

In case the Issuer shall fail forthwith to pay such amounts upon such demand, the Trustee, in its own name and as trustee of an express trust, shall be entitled and empowered to institute any action or proceedings at law or in equity for the collection of the sums so due and unpaid, and may prosecute any such action or proceedings to judgment or final decree, and may enforce any such judgment or final decree against the Issuer or other obligor upon such Securities and collect in the manner provided by law out of the property of the Issuer or other obligor upon such Securities, wherever situated, the moneys adjudged or decreed to be payable.

 

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

 

(i)           to file and prove a claim or claims for the whole amount of principal and interest (or, if the Securities of any series are Original Issue Discount Securities, such portion of the principal amount as may be specified in the terms of such series) owing and unpaid in respect of the Securities of any series, 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 reasonable compensation to the Trustee and each predecessor trustee, and their respective agents, attorneys and counsel, and for reimbursement of all expenses and liabilities incurred, and all advances made, by the Trustee and each predecessor trustee, except as a result of negligence or bad faith) and of the Securityholders allowed in any judicial proceedings relative to the Issuer or other obligor upon the Securities of any series, or to the creditors or property of the Issuer or such other obligor,

 

  

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(ii)           unless prohibited by applicable law and regulations, to vote on behalf of the Holders of the Securities of any series in any election of a trustee or a standby trustee in arrangement, reorganization, liquidation or other bankruptcy or insolvency proceedings or person performing similar functions in comparable proceedings, and

 

(iii)           to collect and receive any moneys or other property payable or deliverable on any such claims, and to distribute all amounts received with respect to the claims of the Securityholders and of the Trustee on their behalf; and any trustee, receiver or liquidator, custodian or other similar official is hereby authorized by each of the Securityholders to make payments to the Trustee, and, in the event that the Trustee shall consent to the making of payments directly to the Securityholders, to pay to the Trustee such amounts as shall be sufficient to cover reasonable compensation to the Trustee, each predecessor trustee and their respective agents, attorneys and counsel, and all other expenses and liabilities incurred, and all advances made, by the Trustee and each predecessor trustee except as a result of negligence or bad faith and all other amounts due to the Trustee or any predecessor trustee pursuant to Section 6.06.

 

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

 

All rights of action and of asserting claims under this Indenture, or under any of the Securities of any series, may be enforced by the Trustee without the possession of any of the Securities of such series or the production thereof on any trial or other proceedings relative thereto, and any such action or proceedings instituted by the Trustee shall be brought in its own name as trustee of an express trust, and any recovery of judgment, subject to the payment of the expenses, disbursements and compensation of the Trustee, each predecessor trustee and their respective agents and attorneys, shall be for the ratable benefit of the Holders of the Securities in respect of which such action was taken.

 

  

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In any proceedings brought by the Trustee (and also any proceedings involving the interpretation of any provision of this Indenture to which the Trustee shall be a party), the Trustee shall be held to represent all the Holders of the Securities in respect to which such action was taken, and it shall not be necessary to make any Holders of such Securities parties to any such proceedings.

 

Section 5.03                           Application of Proceeds.  Any moneys collected by the Trustee pursuant to this Article in respect of any series shall be applied in the following order at the date or dates fixed by the Trustee and, in case of the distribution of such moneys on account of principal or interest, upon presentation of the several Securities in respect of which monies have been collected and stamping (or otherwise noting) thereon the payment, or issuing Securities of such series in reduced principal amounts in exchange for the presented Securities of like series if only partially paid, or upon surrender thereof if fully paid:

 

FIRST:  To the payment of all amounts due to the Trustee or any predecessor trustee pursuant to Section 6.06;

 

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

 

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

 

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

 

Section 5.04                           Suits for Enforcement.  In case an Event of Default has occurred, has not been waived and is continuing, the Trustee may in its discretion proceed to protect and enforce the rights vested in it by this Indenture by such appropriate judicial proceedings as the Trustee shall deem most effectual to protect and enforce any such rights, either at law or in equity or in bankruptcy or otherwise, whether for the specific enforcement of any covenant or agreement contained in this Indenture or in aid of the exercise of any power granted in this Indenture or to enforce any other legal or equitable right vested in the Trustee by this Indenture or by law.

 

  

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Section 5.05                           Restoration of Rights on Abandonment of Proceedings.  In case the Trustee shall have proceeded to enforce any right under this Indenture and such proceedings shall have been discontinued or abandoned for any reason, or shall have been determined adversely to the Trustee, then and in every such case (subject to any determination in such proceeding) the Issuer and the Trustee shall be restored respectively to their former positions and rights hereunder, and all rights, remedies and powers of the Issuer, the Trustee and the Securityholders shall continue as though no such proceedings had been taken.

 

Section 5.06                           Limitations on Suits by Securityholders.  No Holder of any Security of any series shall have any right by virtue or by availing of any provision of this Indenture to institute any action or proceeding at law or in equity or in bankruptcy or otherwise upon or under or with respect to this Indenture, or for the appointment of a trustee, receiver, liquidator, custodian or other similar official or for any other remedy hereunder, unless such Holder previously shall have given to the Trustee written notice of default and of the continuance thereof, as hereinbefore provided, and unless also the Holders of not less than 25% in aggregate principal amount of the Securities of such series then Outstanding shall have made written request upon the Trustee to institute such action or proceedings in its own name as trustee hereunder and shall have offered to the Trustee such reasonable indemnity as it may require against the costs, expenses and liabilities to be incurred therein or thereby and the Trustee for 60 days after its receipt of such notice, request and offer of indemnity shall have failed to institute any such action or proceeding and no direction inconsistent with such written request shall have been given to the Trustee pursuant to Section 5.09; it being understood and intended, and being expressly covenanted by the Holder of every Security with every other Holder and the Trustee, that no one or more Holders of Securities of any series shall have any right in any manner whatever by virtue or by availing of any provision of this Indenture to affect, disturb or prejudice the rights of any other such Holder of Securities, or to obtain or seek to obtain priority over or preference to any other such Holder or to enforce any right under this Indenture, except in the manner herein provided and for the equal, ratable and common benefit of all Holders of Securities of the applicable series.  For the protection and enforcement of the provisions of this Section, each and every Securityholder and the Trustee shall be entitled to such relief as can be given either at law or in equity.

 

Section 5.07                           Unconditional Right of Securityholders to Institute Certain Suits.  Notwithstanding any other provision in this Indenture and any provision of any Security, the right of any Holder of any Security to receive payment of the principal of and interest on such Security on or after the respective due dates expressed in such Security in accordance with the terms hereof and thereof, or to institute suit for the enforcement of any such payment on or after such respective dates, shall not be impaired or affected without the consent of such Holder; it being understood and intended, and being expressly covenanted by the Holder of every Security with every other Holder and the Trustee, that no one or more Holders of Securities of any series shall have any right in any manner whatever by virtue or by availing of any provision of this Indenture to affect, disturb or prejudice the rights of any other such Holder of Securities, or to obtain or seek to obtain priority over or preference to any other such Holder or to enforce any right under this Indenture, except in the manner herein provided and for the equal, ratable and common benefit of all Holders of Securities of the applicable series.  For the protection and enforcement of the provisions of this Section, each and every Securityholder and the Trustee shall be entitled to such relief as can be given either at law or in equity.

 

  

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Section 5.08                           Powers and Remedies Cumulative; Delay or Omission Not Waiver of Default.  Except as provided in Section 5.06, no right or remedy herein conferred upon or reserved to the Trustee or to the Holders of Securities 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.

 

No delay or omission of the Trustee or of any Holder of Securities to exercise any right or power accruing upon any Event of Default occurring and continuing as aforesaid shall impair any such right or power or shall be construed to be a waiver of any such Event of Default or an acquiescence therein; and, subject to Section 5.06, every power and remedy given by this Indenture or by law to the Trustee or to the Holders of Securities may be exercised from time to time, and as often as shall be deemed expedient, by the Trustee or by the Holders of Securities.

 

Section 5.09                           Control by Holders of Securities.  The Holders of a majority in aggregate principal amount of the Securities of each series affected (with each series voting as a separate class) at the time Outstanding 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 by this Indenture; provided, that such direction shall not be otherwise than in accordance with law and the provisions of this Indenture and provided, further, that (subject to the provisions of Section 6.01) the Trustee shall have the right to decline to follow any such direction if the Trustee, being advised by counsel, shall determine that the action or proceeding so directed may not lawfully be taken or if the Trustee in good faith by its board of directors, the executive committee, or a trust committee of directors or Responsible Officers of the Trustee shall determine that the action or proceedings so directed would involve the Trustee in personal liability or if the Trustee in good faith shall so determine that the actions or forbearances specified in or pursuant to such direction would be unduly prejudicial to the interests of Holders of the Securities of all series so affected not joining in the giving of said direction, it being understood that (subject to Section 6.01) the Trustee shall have no duty to ascertain whether or not such actions or forbearances are unduly prejudicial to such Holders.

 

Nothing in this Indenture shall impair the right of the Trustee in its discretion to take any action deemed proper by the Trustee and which is not inconsistent with such direction or directions by Securityholders.

 

  

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Section 5.10                           Waiver of Past Defaults.  The Holders of a majority in aggregate principal amount of the Securities of such series at the time Outstanding, by notice to the Trustee, may on behalf of the Holders of all the Securities of such series waive any existing default in the performance of any of the covenants contained herein or established pursuant to Section 2.03 with respect to such series and its consequences, except an uncured default in the payment of the principal of, or interest on, any of the Securities of that series as and when the same shall become due by the terms of such Securities; and may rescind an acceleration and its consequences, including any related payment default that resulted from such acceleration.  In the case of any such waiver, the Issuer, the Trustee and the Holders of the Securities of such series shall be restored to their former positions and rights hereunder, respectively, such default shall cease to exist and be deemed to have been cured and not to have occurred, and any Event of Default arising therefrom shall be deemed to have been cured, and not to have occurred for every purpose of this Indenture; but no such waiver shall extend to any subsequent or other default or Event of Default or impair any right consequent thereon.

 

Section 5.11                           Trustee to Give Notice of Default.  The Trustee shall, within 90 days after the occurrence of a default with respect to the Securities of any series, give notice of all defaults with respect to that series known to the Trustee to all Holders of Securities of such series in the manner and to the extent provided in Section 4.03, unless in each case such defaults shall have been cured before the mailing or publication of such notice (the term “defaults” for the purpose of this Section being hereby defined to mean any event or condition which is, or with notice or lapse of time or both would become, an Event of Default); provided, that, except in the case of default in the payment of the principal of or interest on any of the Securities of such series, or in the payment of any sinking fund installment on 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 or trustees and/or Responsible Officers of the Trustee in good faith determines that the withholding of such notice is in the interests of the Securityholders of such series.

 

Section 5.12                           Right of Court to Require Filing of Undertaking to Pay Costs.  All parties to this Indenture agree, and each Holder of any Security by his or her acceptance thereof shall be deemed to have agreed, that any court may in its discretion require, in any suit for the enforcement of any right or remedy under this Indenture or in any suit against the Trustee for any action taken, suffered or omitted by it as Trustee, the filing by any party litigant in such suit of an undertaking to pay the costs of such suit, and that such court may in its discretion assess reasonable costs, including reasonable attorneys’ fees, against any party litigant in such suit, having due regard to the merits and good faith of the claims or defenses made by such party litigant; but the provisions of this Section shall not apply to any suit instituted by the Trustee, to any suit instituted by any Securityholder or group of Securityholders of any series holding in the aggregate more than 10% in aggregate principal amount of the Securities of such series, or to any suit instituted by any Securityholder for the enforcement of the payment of the principal of or interest on any Security of such series, on or after the respective due dates expressed in such Security or established pursuant to this Indenture.

 

  

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ARTICLE 6

CONCERNING THE TRUSTEE

 

Section 6.01                           Duties and Responsibilities of the Trustee; During Default; Prior to Default. With respect to the Holders of any series of Securities issued hereunder, the Trustee, prior to the occurrence of an Event of Default with respect to the Securities of a particular series and after the curing or waiving of all Events of Default which may have occurred with respect to such series, undertakes to perform such duties and only such duties as are specifically set forth in this Indenture.  In case an Event of Default with respect to the Securities of a series 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 or her 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.

 

Section 6.02                           Certain Rights of the Trustee.  In furtherance of and subject to the Trust Indenture Act of 1939 and subject to Section 6.01:

 

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

 

(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 it shall be proved that 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 direction of the Holders pursuant to Section 5.09 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)           none of the provisions contained in this Indenture shall require the Trustee to expend or risk its own funds or otherwise incur personal financial liability in the performance of any of its duties or in the exercise of any of its rights or powers if there shall be reasonable ground for believing that the repayment of such funds or adequate indemnity against such liability is not reasonably assured to it;

 

(e)           the Trustee may rely and shall be protected in acting or refraining from acting upon any resolution, Officer’s Certificate or any other certificate, statement, instrument, opinion, report, notice, request, consent, order, bond, debenture, note, security or other paper or document believed by it to be genuine and to have been signed or presented by the proper party or parties;

 

  

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(f)           any request, direction, order or demand of the Issuer mentioned herein shall be sufficiently evidenced by an Officer’s 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 Issuer;

 

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

 

(h)           the Trustee shall be under no obligation to exercise any of the trusts or powers vested in it by this Indenture at the request, order or direction of any of the Securityholders pursuant to the provisions of this Indenture, unless such Securityholders shall have offered to the Trustee reasonable security or indemnity against the costs, expenses and liabilities which might be incurred therein or thereby;

 

(i)           the Trustee shall not be liable for any action taken or omitted by it in good faith and believed by it to be authorized or within the discretion, rights or powers conferred upon it by this Indenture;

 

(j)           prior to the occurrence of an Event of Default hereunder and after the curing or waiving of all Events of Default, the Trustee shall not be bound to make any investigation into the facts or matters stated in any resolution, certificate, statement, instrument, opinion, report, notice, request, consent, order, approval, appraisal, bond, debenture, note, security, or other paper or document unless requested in writing so to do by the Holders of not less than a majority in aggregate principal amount of the Securities of all series affected then Outstanding; provided, that, if the payment within a reasonable time to the Trustee of the costs, expenses or liabilities likely to be incurred by it in the making of such investigation is, in the opinion of the Trustee, not reasonably assured to the Trustee by the security afforded to it by the terms of this Indenture, the Trustee may require reasonable indemnity against such expenses or liabilities as a condition to proceeding; the reasonable expenses of every such investigation shall be paid by the Issuer or, if paid by the Trustee or any predecessor trustee, shall be repaid by the Issuer upon demand; and

 

(k)           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 not regularly in its employ and the Trustee shall not be responsible for any misconduct or negligence on the part of any such agent or attorney appointed with due care by it hereunder.

 

Section 6.03                           Trustee Not Responsible for Recitals, Disposition of Securities or Application of Proceeds Thereof.  The recitals contained herein and in the Securities, except the Trustee’s certificates of authentication, shall be taken as the statements of the Issuer, and the Trustee assumes no responsibility for the correctness of the same.  The Trustee makes no representation 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 Issuer of any of the Securities or of the proceeds thereof.

 

  

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Section 6.04                           Trustee and Agents May Hold Securities; Collections, Etc.  The Trustee or any agent of the Issuer or the Trustee, 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 the Trustee or such agent and may otherwise deal with the Issuer and receive, collect, hold and retain collections from the Issuer with the same rights it would have if it were not the Trustee or such agent.

 

Section 6.05                           Moneys Held by Trustee.  Subject to the provisions of Section 10.04 hereof, all moneys received by the Trustee shall, until used or applied as herein provided, be held in trust for the purposes for which they were received, but need not be segregated from other funds except to the extent required by mandatory provisions of law.  Neither the Trustee nor any agent of the Issuer or the Trustee shall be under any liability for interest on any moneys received by it hereunder.

 

Section 6.06                           Compensation and Indemnification of Trustee and Its Prior Claim.  The Issuer covenants and agrees to pay to the Trustee from time to time, and the Trustee shall be entitled to, such reasonable compensation (which shall not be limited by any provision of law in regard to the compensation of a trustee of an express trust) as the Issuer and the Trustee may from time to time agree in writing and, except as otherwise expressly provided herein, the Issuer covenants and agrees to pay or reimburse the Trustee and each predecessor trustee upon its request for all reasonable expenses, disbursements and advances incurred or made by or on behalf of it 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 agents and other persons not regularly in its employ) except any such expense, disbursement or advance as may arise from its negligence or bad faith.  The Issuer also covenants to indemnify the Trustee and each predecessor trustee for, and to hold it harmless against, any loss, liability or expense incurred without negligence or bad faith on its part, arising out of or in connection with the acceptance or administration of this Indenture or the trusts hereunder and its duties hereunder, including the costs and expenses of defending itself against or investigating any claim of liability in the premises.  The obligations of the Issuer under this Section to compensate and indemnify the Trustee and each predecessor trustee and to pay or reimburse the Trustee and each predecessor trustee for expenses, disbursements and advances shall constitute additional indebtedness hereunder and shall survive the satisfaction and discharge of this Indenture.  Such additional indebtedness shall be a senior claim to that of the Securities upon all property and funds held or collected by the Trustee as such, except funds held in trust for the benefit of the Holders of particular Securities, and the Securities are hereby subordinated to such senior claim.

 

Section 6.07                           Right of Trustee to Rely on Officer’s Certificate, Etc.  Subject to Sections 6.01 and 6.02, whenever in the administration of the trusts of this Indenture the Trustee shall deem it necessary or desirable that a matter be proved or established prior to taking or suffering or omitting any action hereunder, such matter (unless other evidence in respect thereof be herein specifically prescribed) may, in the absence of negligence or bad faith on the part of the Trustee, be deemed to be conclusively proved and established by an Officer’s Certificate delivered to the Trustee, and such certificate, in the absence of negligence or bad faith on the part of the Trustee, shall be full warrant to the Trustee for any action taken, suffered or omitted by it under the provisions of this Indenture upon the faith thereof.

 

  

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Section 6.08                           Disqualification; Conflicting Interests.  If the Trustee has or shall acquire any "conflicting interest" within the meaning of Section 310(b) of the Trust Indenture Act, the Trustee and the Issuer shall in all respects comply with the provisions of Section 310(b) of the Trust Indenture Act.

 

Section 6.09                           Persons Eligible for Appointment as Trustee.  The Trustee for each series of Securities hereunder shall at all times be a corporation having a combined capital and surplus of at least $50,000,000 and shall be eligible in accordance with the provisions of Section 310(a) of the Trust Indenture Act of 1939.  If such corporation publishes reports of condition at least annually, pursuant to law or to the requirements of a Federal, State or District of Columbia supervising or examining authority, then, for the purposes of this Section, the combined capital and surplus of such corporation shall be deemed to be its combined capital and surplus as set forth in its most recent report of condition so published.

 

Section 6.10                           Resignation and Removal; Appointment of Successor Trustee.  (a)  The Trustee, or any trustee or trustees hereafter appointed, may at any time resign with respect to one or more or all series of Securities by giving written notice of resignation to the Issuer and by mailing notice of such resignation to the Holders of then Outstanding Securities of each series affected at their addresses as they shall appear on the Security register.  Upon receiving such notice of resignation, the Issuer shall promptly appoint a successor trustee or trustees with respect to the applicable series by written instrument in duplicate, executed by authority of the Board of Directors, one copy of which instrument shall be delivered to the resigning Trustee and one copy to the successor trustee or trustees.  If no successor trustee shall have been so appointed with respect to any series and have accepted appointment within 30 days after the mailing of such notice of resignation, the resigning trustee may petition any court of competent jurisdiction for the appointment of a successor trustee, or any Securityholder who has been a bona fide Holder of a Security or Securities of the applicable series for at least six months may, on behalf of himself or herself 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.

 

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

 

(i)           the Trustee shall fail to comply with the provisions of Section 310(b) of the Trust Indenture Act of 1939 with respect to any series of Securities after written request therefor by the Issuer or by any Securityholder who has been a bona fide Holder of a Security or Securities of such series for at least six months; or

 

  

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(ii)           the Trustee shall cease to be eligible in accordance with the provisions of Section 310(a) of the Trust Indenture Act of 1939 and shall fail to resign after written request therefor by the Issuer or by any Securityholder; or

 

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

 

then, in any such case, (A) the Issuer may remove the Trustee with respect to the applicable series of Securities and appoint a successor trustee for such series 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, (B) subject to Section 315(e) of the Trust Indenture Act of 1939, any Securityholder who has been a bona fide Holder of a Security or Securities of such series for at least six months may on behalf of himself or herself and all others similarly situated, petition any court of competent jurisdiction for the removal of the Trustee and the appointment of a successor trustee with respect to such series. Such court may thereupon, after such notice, if any, as it may deem proper and prescribe, remove the Trustee and appoint a successor trustee.

 

(b)           The Holders of a majority in aggregate principal amount of the Securities of each series at the time Outstanding may at any time remove the Trustee with respect to Securities of such series and, with the consent of the Issuer, appoint a successor trustee with respect to the Securities of such series by delivering to the Trustee so removed, to the successor trustee so appointed and to the Issuer the evidence provided for in Section 7.01 of the action in that regard taken by the Securityholders.

 

(c)           Any resignation or removal of the Trustee with respect to any series and any appointment of a successor trustee with respect to such series pursuant to any of the provisions of this Section 6.10 shall become effective upon acceptance of appointment by the successor trustee as provided in Section 6.11.

 

Section 6.11                           Acceptance of Appointment by Successor Trustee.  Any successor trustee appointed as provided in Section 6.10 shall execute and deliver to the Issuer and to its predecessor trustee an instrument accepting such appointment hereunder, and thereupon the resignation or removal of the predecessor trustee with respect to all or any applicable series shall become effective and such successor trustee, without any further act, deed or conveyance, shall become vested with all rights, powers, duties and obligations with respect to such series of its predecessor hereunder, with like effect as if originally named as trustee for such series hereunder; but, nevertheless, on the written request of the Issuer or of the successor trustee, upon payment of its charges then unpaid, the trustee ceasing to act shall, subject to Section 10.04, pay over to the successor trustee all moneys at the time held by it hereunder and shall execute and deliver an instrument transferring to such successor trustee all such rights, powers, duties and obligations.  Upon request of any such successor trustee, the Issuer 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 prior claim upon all property or funds held or collected by such trustee to secure any amounts then due it pursuant to the provisions of Section 6.06.

 

  

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If a successor trustee is appointed with respect to the Securities of one or more (but not all) series, the Issuer, the predecessor trustee and each successor trustee with respect to the Securities of any applicable series shall execute and deliver an indenture supplemental hereto which shall contain such provisions as shall be deemed necessary or desirable to confirm that all the rights, powers, trusts and duties of the predecessor trustee with respect to the Securities of any series as to which the predecessor trustee is not retiring shall continue to be vested in the predecessor trustee, and shall add to or change any of the provisions of this Indenture as shall be necessary to provide for or facilitate the administration of the trusts hereunder by more than one trustee, it being understood that nothing herein or in such supplemental indenture shall constitute such trustees co-trustees of the same trust and that each such trustee shall be trustee of a trust or trusts under separate indentures.

 

No successor trustee with respect to any series of Securities shall accept appointment as provided in this Section 6.11 unless at the time of such acceptance such successor trustee shall be qualified under the provisions of Section 310(b) of the Trust Indenture Act of 1939 and eligible under the provisions of Section 310(a) of the Trust Indenture Act of 1939.

 

Upon acceptance of appointment by any successor trustee as provided in this Section 6.11, the Issuer shall mail notice thereof to the Holders of Securities of each series affected, by mailing such notice to such Holders at their addresses as they shall appear on the Security register.  If the acceptance of appointment is substantially contemporaneous with the resignation, then the notice called for by the preceding sentence may be combined with the notice called for by Section 6.10.  If the Issuer fails to mail such notice within ten days after acceptance of appointment by the successor trustee, the successor trustee shall cause such notice to be given at the expense of the Issuer.

 

Section 6.12                           Merger, Conversion, Consolidation or Succession to Business of Trustee.  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 the corporate trust business of the Trustee, shall be the successor of the Trustee hereunder; provided, that such corporation shall be qualified under the provisions of Section 310(b) of the Trust Indenture Act of 1939 and eligible under the provisions of Section 310(a) of the Trust Indenture Act of 1939, without the execution or filing of any paper or any further act on the part of any of the parties hereto, anything herein to the contrary notwithstanding.

 

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

 

  

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Section 6.13                           Preferential Collection of Claims Against the Issuer.  The Trustee shall comply with Section 311(a) of the Trust Indenture Act, excluding any creditor relationship described in Section 311(b) of the Trust Indenture Act.  A Trustee who has resigned or been removed shall be subject to Section 311(a) of the Trust Indenture Act to the extent included therein.

 

ARTICLE 7

CONCERNING THE SECURITYHOLDERS

 

Section 7.01                           Evidence of Action Taken by Securityholders.  Any request, demand, authorization, direction, notice, consent, waiver or other action provided by this Indenture to be given or taken by a specified percentage in principal amount of the Securityholders of any or all series may be embodied in and evidenced by one or more instruments of substantially similar tenor signed by such specified percentage of Securityholders in person or by agent duly appointed in writing; and, except as herein otherwise expressly provided, such action shall become effective when such instrument or instruments are delivered to the Trustee.  Proof of execution of any instrument or of a writing appointing any such agent shall be sufficient for any purpose of this Indenture and (subject to Sections 6.01 and 6.02) conclusive in favor of the Trustee and the Issuer, if made in the manner provided in this Article.

 

Section 7.02                           Proof of Execution of Instruments and of Holding of Securities.  Subject to Sections 6.01 and 6.02, the execution of any instrument by a Holder or his agent or proxy may be proved in accordance with such reasonable rules and regulations as may be prescribed by the Trustee or in such manner as shall be satisfactory to the Trustee.  The holding of Securities shall be proved by the Security register or by a certificate of the registrar thereof.  The Issuer may set a record date for purposes of determining the identity of Holders of any series entitled to vote or consent to any action referred to in Section 7.01, which record date may be set at any time or from time to time by notice to the Trustee, for any date or dates (in the case of any adjournment or reconsideration) not more than 60 days nor less than five days prior to the proposed date of such vote or consent, and thereafter, notwithstanding any other provisions hereof, only Holders of such series of record on such record date shall be entitled to so vote or give such consent or revoke such vote or consent.  Notice of such record date may be given before or after any request for any action referred to in Section 7.01 is made by the Issuer.

 

Section 7.03                           Holders to Be Treated as Owners.  The Issuer, the Trustee and any agent of the Issuer or of the Trustee may deem and treat the Person in whose name any Security shall be registered upon the Security register for such series as the absolute owner of such Security (whether or not such Security shall be overdue and notwithstanding any notation of ownership or other writing thereon) for the purpose of receiving payment of or on account of the principal of, and, subject to the provisions of this Indenture, interest on, such Security and for all other purposes; and neither the Issuer nor the Trustee nor any agent of the Issuer or the Trustee shall be affected by any notice to the contrary.  All such payments so made to any such Person, or upon his or her order, shall be valid, and, to the extent of the sum or sums so paid, effectual to satisfy and discharge the liability for moneys payable.

 

  

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Section 7.04                           Securities Owned by Issuer Deemed Not Outstanding.  In determining whether the Holders of the requisite aggregate principal amount of Outstanding Securities of any or all series have concurred in any direction, consent or waiver under this Indenture, Securities which are owned by the Issuer or any other obligor on the Securities with respect to which such determination is being made or by any Person directly or indirectly controlling or controlled by or under direct or indirect common control with the Issuer or any other obligor on the Securities with respect to which such determination is being made shall be disregarded and deemed not to be Outstanding for the purpose of any such determination, except that, for the purpose of determining whether the Trustee shall be protected in relying on any such direction, consent or waiver, only Securities which the Trustee knows are 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 Issuer or any other obligor upon the Securities or any Person directly or indirectly controlling or controlled by or under direct or indirect common control with the Issuer or any other obligor on the Securities.  In case of a dispute as to such right, the advice of counsel shall be full protection in respect of any decision made by the Trustee in accordance with such advice.

 

Section 7.05                           Right of Revocation of Action Taken.  At any time prior to (but not after) the evidencing to the Trustee, as provided in Section 7.01, of the taking of any action by the Holders of the percentage in aggregate principal amount of the Securities of any or all series, as the case may be, specified in this Indenture in connection with such action, any Holder of a Security the serial number of which is shown by the evidence to be included among the serial numbers of the Securities the Holders of which have consented to such action may, by filing written notice at the Corporate Trust Office and upon proof of holding as provided in this Article, revoke such action so far as concerns such Security.  Except as aforesaid, any such action taken by the Holder of any Security shall be conclusive and binding upon such Holder and upon all future Holders and owners of such Security and of any Securities issued in exchange or substitution therefor or on registration of transfer thereof, irrespective of whether or not any notation in regard thereto is made upon any such Security.  Any action taken by the Holders of the percentage in aggregate principal amount of the Securities of any or all series, as the case may be, specified in this Indenture in connection with such action shall be conclusively binding upon the Issuer, the Trustee and the Holders of all the Securities affected by such action.

 

ARTICLE 8

SUPPLEMENTAL INDENTURES

 

Section 8.01                           Supplemental Indentures Without Consent of Securityholders.  The Issuer, when authorized by a resolution of its Board of Directors, and the Trustee may from time to time and at any time, without the consent of any of the Securityholders, enter into an indenture or indentures supplemental hereto in form satisfactory to the Trustee for one or more of the following purposes:

 

(a)           to convey, transfer, assign, mortgage or pledge to the Trustee as security for the Securities of one or more series any property or assets;

 

  

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(b)           to evidence the succession of a corporation, limited liability company, partnership or trust to the Issuer, or successive successions, and the assumption by such successor of the covenants, agreements and obligations of the Issuer pursuant to, or to otherwise comply with, Article 9;

 

(c)           to comply with the requirements of the Commission in order to effect or maintain the qualification of this Indenture under the Trust Indenture Act of 1939, as amended;

 

(d)           to add to the covenants of the Issuer such further covenants, restrictions, conditions or provisions as its Board of Directors and the Trustee shall consider to be for the protection of the Holders of Securities, and to make the occurrence, or the occurrence and continuance, of a default in any such additional covenants, restrictions, conditions or provisions an Event of Default permitting the enforcement of all or any of the several remedies provided in this Indenture as herein set forth; provided, that in respect of any such additional covenant, restriction, condition or provision 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 an Event of Default or may limit the remedies available to the Trustee upon such an Event of Default or may limit the right of the Holders of a majority in aggregate principal amount of the Securities of such series to waive such an Event of Default;

 

(e)           to cure any ambiguity, defect or inconsistency, or to conform this Indenture or any supplemental indenture to the description of the Securities set forth in any prospectus or prospectus supplement related to such series of Securities;

 

(f)           to provide for or add guarantors for the Securities of one or more series;

 

(g)           to establish the form or terms of Securities of any series as permitted by Sections 2.01 and 2.03;

 

(h)           to evidence and provide for the acceptance of appointment hereunder by a successor trustee with respect to the Securities of one or more series and to add to or change any of the provisions of this Indenture as shall be necessary to provide for or facilitate the administration of the trusts hereunder by more than one trustee, pursuant to the requirements of Section 6.11;

 

(i)           to add to, delete from or revise the conditions, limitations and restrictions on the authorized amount, terms, purposes of issue, authentication and delivery of any series of Securities, as herein set forth;

 

(j)           to make any change to the Securities of any series so long as no Securities of such series are Outstanding; and

  

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(k)           to make any other change that does not adversely affect the interests of the Holders of the Securities in any material respect.

 

The Trustee shall join with the Issuer in the execution of any such supplemental indenture, to make any further appropriate agreements and stipulations which may be therein contained and to accept the conveyance, transfer, assignment, mortgage or pledge of any property thereunder, but the Trustee 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.

 

Any supplemental indenture authorized by the provisions of this Section may be executed without the consent of the Holders of any of the Securities at the time Outstanding, notwithstanding any of the provisions of Section 8.02.

 

Section 8.02                           Supplemental Indentures With Consent of Securityholders.  With the consent (evidenced as provided in Article 7) of the Holders of not less than a majority in aggregate principal amount of the Securities at the time Outstanding of one or more series affected by such supplemental indenture (voting as separate series), the Issuer, when authorized by a resolution of the Board of Directors, and the Trustee may, from time to time and at any time, 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 any supplemental indenture or of modifying in any manner the rights of the Holders of the Securities of each such consenting series; provided, that no such supplemental indenture shall, without the consent of the Holder of each Security so affected, (a) extend the final maturity of any Security, or reduce the principal amount thereof, or reduce the rate or extend the time of payment of interest thereon, or reduce any amount payable on redemption thereof, or make the principal thereof (including any amount in respect of original issue discount) or interest thereon payable in any currency other than that provided in the Securities or in accordance with the terms thereof, or reduce the amount of the principal of an Original Issue Discount Security that would be due and payable upon an acceleration of the maturity thereof pursuant to Section 5.01 or the amount thereof provable in bankruptcy pursuant to Section 5.02, or (b) waive an uncured default in the payment of principal of any Security or interest thereon (except in the case of a rescission of acceleration of the Securities of such series by the Holders of at least a majority in aggregate principal amount of the Securities of such series at the time Outstanding and a waiver of the payment default that resulted from such acceleration) or change a provision related to the waiver of past defaults or changes or impair the right of any Securityholder to institute suit for the payment or conversion thereof or, if the Securities provide therefor, any right of repayment at the option of the Securityholder, or (c) modify any of the provisions of this section except to increase any required percentage or to provide that certain other provisions cannot be modified or waived without the consent of the Holder of each Security so affected, or (d) reduce the aforesaid percentage of Securities of any series, the consent of the Holders of which is required for any such supplemental indenture or the consent of Holders of which is required for any modification, amendment or waiver of compliance with certain provisions of this Indenture or certain defaults hereunder and their consequences provided for in this Indenture.

 

  

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A supplemental indenture which changes or eliminates any covenant, Event of Default or other provision of this Indenture (1) that has been expressly included solely for the benefit of one or more particular series of Securities, if any, or (2) which modifies the rights of Holders of Securities of one or more series with respect to any covenant, Event of Default or provision, shall be deemed not to affect the rights under this Indenture of the Holders of Securities of any other series with respect to which such covenant, Event of Default or other provision has not been included or so modified.

 

Upon the request of the Issuer, accompanied by a Board Resolution authorizing the execution of any such supplemental indenture, and upon the filing with the Trustee of evidence of the consent of Securityholders as aforesaid and other documents, if any, required by Section 7.01, the Trustee shall join with the Issuer in the execution of such supplemental indenture unless such supplemental indenture affects the Trustee’s own rights, duties or immunities under this Indenture or otherwise, in which case the Trustee may in its discretion, but shall not be obligated to, enter into such supplemental indenture.

 

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

 

Promptly after the execution by the Issuer and the Trustee of any supplemental indenture pursuant to the provisions of this Section, the Trustee shall give a notice thereof to the Holders of then Outstanding Securities of each series affected thereby, by mailing a notice thereof by first-class mail to such Holders at their addresses as they shall appear on the Security register, and in each case such notice shall set forth in general terms the substance of such supplemental indenture.  Any failure of the Trustee to mail such notice, or any defect therein, shall not, however, in any way impair or affect the validity of any such supplemental indenture.

 

Section 8.03                           Effect of Supplemental Indenture.  Upon the execution of any supplemental indenture pursuant to the provisions hereof, this Indenture shall be and be deemed to be modified and amended in accordance therewith and the respective rights, limitations of rights, obligations, duties and immunities under this Indenture of the Trustee, the Issuer and the Holders of Securities of each series affected thereby shall thereafter be determined, exercised and enforced hereunder subject in all respects to such modifications and amendments, and all the terms and conditions of any such supplemental indenture shall be and be deemed to be part of the terms and conditions of this Indenture for any and all purposes.

 

Section 8.04                           Documents to Be Given to Trustee.  The Trustee, subject to the provisions of Sections 6.01 and 6.02, may receive an Officer’s Certificate and an Opinion of Counsel as conclusive evidence that any supplemental indenture executed pursuant to this Article 8 complies with the applicable provisions of this Indenture.

 

  

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Section 8.05                           Notation on Securities in Respect of Supplemental Indentures.  Securities of any series authenticated and delivered after the execution of any supplemental indenture pursuant to the provisions of this Article may bear a notation in form approved by the Trustee for such series as to any matter provided for by such supplemental indenture or as to any action taken by Securityholders.  If the Issuer or the Trustee shall so determine, new Securities of any series so modified as to conform, in the opinion of the Trustee and the Board of Directors, to any modification of this Indenture contained in any such supplemental indenture may be prepared by the Issuer, authenticated by the Trustee and delivered in exchange for the Securities of such series then Outstanding.

 

ARTICLE 9

CONSOLIDATION, MERGER, SALE OR CONVEYANCE

 

Section 9.01                           Issuer May Consolidate, Etc., on Certain Terms.  The Issuer shall not consolidate with or merge into any other Person (in a transaction in which the Issuer is not the surviving corporation) or convey, transfer or lease its properties and assets substantially as an entirety to any Person, unless (a) the Person formed by such consolidation or into which the Issuer is merged or the Person which acquires by conveyance or transfer, or which leases, the properties and assets of the Issuer substantially as an entirety (i) shall be a corporation, limited liability company, partnership or trust, (ii) shall be organized and validly existing under the laws of the United States of America, any State thereof or the District of Columbia and (iii) shall expressly assume, by an indenture supplemental hereto, executed and delivered to the Trustee, in form satisfactory to the Trustee, the due and punctual payment of the principal of and interest on all the Securities and the performance or observance of every covenant of this Indenture on the part of the Issuer to be performed, by supplemental indenture satisfactory in form to the Trustee, executed and delivered to the Trustee, by the Person formed by such consolidation or into which the Issuer shall have been merged or by the Person which shall have acquired the Issuer’s assets; (b) immediately after giving effect to such transaction, no Event of Default, and no event which, after notice or lapse of time or both, would become an Event of Default, shall have happened and be continuing; and (c) the Issuer has delivered to the Trustee an Officer’s Certificate and an Opinion of Counsel, each stating that such consolidation, merger, conveyance, transfer or lease and, if a supplemental indenture is required in connection with such transaction, such supplemental indenture comply with this Article and that all conditions precedent herein provided for relating to such transaction have been complied with.

 

The conditions of (a)(ii) above shall not apply in the case of a corporation or entity not organized under the laws of the United States of America, any State thereof or the District of Columbia which shall agree, in form satisfactory to the Trustee, (i) to subject itself to the jurisdiction of the United States district court for the Southern District of New York and (ii) to indemnify and hold harmless the holders of all Securities against (A) any tax, assessment or governmental charge imposed on such holders by a jurisdiction other than the United States or any political subdivision or taxing authority thereof or therein with respect to, and withheld on the making of, any payment of principal or interest on such Securities and which would not have been so imposed and withheld had such consolidation, merger, sale or conveyance not been made and (B) any tax, assessment or governmental charge imposed on or relating to, and any costs or expenses involved in, such consolidation, merger, sale or conveyance.

 

  

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The restrictions in this Section 9.01 shall not apply to (i) the merger or consolidation of the Issuer with one of its affiliates, if the Board of Directors determines in good faith that the purpose of such transaction is principally to change the Issuer’s State of incorporation or convert the Issuer’s form of organization to another form, or (ii) the merger of the Issuer with or into a single direct or indirect wholly owned Subsidiary.

 

Nothing contained in this Article shall apply to, limit or impose any requirements upon the consolidation or merger of any Person into the Issuer where the Issuer is the survivor of such transaction, or the acquisition by the Issuer, by purchase or otherwise, of all or any part of the property of any other Person (whether or not affiliated with the Issuer).

 

Section 9.02                           Successor Issuer Substituted.  Upon any consolidation of the Issuer with, or merger of the Issuer into, any other Person or any conveyance, transfer or lease of the properties and assets of the Issuer substantially as an entirety in accordance with Section 9.01, the successor Person formed by such consolidation or into which the Issuer is merged or to which such conveyance, transfer or lease is made shall succeed to, and be substituted for, and may exercise every right and power of, the Issuer under this Indenture with the same effect as if such successor Person had been named as the Issuer herein, and thereafter, except in the case of a lease, the predecessor Person shall be relieved of all obligations and covenants under this Indenture and the Securities.

 

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

 

ARTICLE 10

SATISFACTION AND DISCHARGE OF INDENTURE; DEFEASANCE; UNCLAIMED MONEYS

 

Section 10.01                           Satisfaction and Discharge of Indenture; Defeasance.  (a)  If at any time

 

(i)           the Issuer shall have paid or caused to be paid the principal of and interest on all the Securities of any series Outstanding hereunder (other than Securities of such series which have been destroyed, lost or stolen and which have been replaced or paid as provided in Section 2.09) as and when the same shall have become due and payable, or

 

(ii)           the Issuer shall have delivered to the Trustee for cancellation all Securities of any series theretofore authenticated (other than any Securities of such series which shall have been destroyed, lost or stolen and which shall have been replaced or paid as provided in Section 2.09) or

 

(iii)           in the case of any series of Securities the exact amount (including the currency of payment) of principal of and interest due on which on the dates referred to in clause (B) below can be determined at the time of making the deposit referred to in such clause,

 

  

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(A)           all the Securities of such series not theretofore delivered to the Trustee for cancellation shall have become due and payable, or are by their terms to become due and payable within one year or are to be called for redemption within one year under arrangements satisfactory to the Trustee for the giving of notice of redemption, and

 

(B)           the Issuer shall have irrevocably deposited or caused to be deposited with the Trustee as trust funds the entire amount in cash (other than moneys repaid by the Trustee or any paying agent to the Issuer in accordance with Section 10.04) or, in the case of any series of Securities the payments on which may only be made in Dollars, U.S. Government Obligations maturing as to principal and interest in such amounts and at such times as will insure the availability of cash sufficient to pay on any subsequent interest payment date all interest due on such interest payment date on the Securities of such series and to pay at maturity or upon redemption all Securities of such series (in each case other than any Securities of such series which shall have been destroyed, lost or stolen and which shall have been replaced or paid as provided in Section 2.09) not theretofore delivered to the Trustee for cancellation, including principal and interest due or to become due to such date of maturity, as the case may be,

 

and if, in any such case (i), (ii) or (iii), the Issuer shall also pay or cause to be paid all other sums payable hereunder by the Issuer, including amounts due the Trustee pursuant to Section 6.06, with respect to Securities of such series, then this Indenture shall cease to be of further effect with respect to Securities of such series (except as to (1) rights of registration of transfer, conversion and exchange of Securities of such series and the Issuer’s right of optional redemption, (2) substitution of mutilated, defaced, destroyed, lost or stolen Securities, (3) rights of Holders of Securities to receive, solely from the trust fund described in Section 10.01(a)(iii)(B), payments of principal thereof and interest thereon, upon the original stated due dates therefor (but not upon acceleration) and remaining rights of the Holders to receive, solely from the trust fund described in Section 10.01(a)(iii)(B), sinking fund payments, if any, (4) the rights (including the Trustee’s rights under Section 10.05) and immunities of the Trustee hereunder and the Trustee’s obligations under Sections 10.02 and 10.04 and (5) the obligations of the Issuer under Section 3.02), and the Trustee, on demand of the Issuer accompanied by an Officer’s Certificate and an Opinion of Counsel which complies with Section 11.05 and at the cost and expense of the Issuer, shall execute proper instruments acknowledging such satisfaction of and discharging this Indenture with respect to such series.  The Issuer agrees to reimburse the Trustee for any costs or expenses thereafter reasonably and properly incurred and to compensate the Trustee for any services thereafter reasonably and properly rendered by the Trustee in connection with this Indenture or the Securities of such series.

 

(b)           The following subsection shall apply to the Securities of each series unless specifically otherwise provided in a Board Resolution, Officer’s Certificate or indenture supplemental hereto provided pursuant to Section 2.03.  In addition to the right to discharge of the Indenture pursuant to subsection (a) above, the Issuer, at its option and at any time, by written notice by an officer delivered to the Trustee, may elect to have all of its obligations discharged with all Outstanding Securities of a series (“Legal Defeasance”), such discharge to be effective on the date that the conditions set forth in clauses (i) through (iv) and (vi) of Section 10.01(d) are satisfied, and thereafter the Issuer shall be deemed to have paid and discharged the entire Debt on all the Securities of such a series, and satisfied all its other obligations under such Securities and this Indenture insofar as such Securities are concerned and this Indenture shall cease to be of further effect with respect to Securities of such series (except as to (1) rights of registration of transfer, conversion and exchange of Securities of such series, (2) substitution of apparently mutilated, defaced, destroyed, lost or stolen Securities, (3) rights of Holders of Securities to receive, solely from the trust fund described in Section 10.01(d)(i), payments of principal thereof and interest thereon, upon the original stated due dates therefor (but not upon acceleration) and remaining rights of the Holders to receive, solely from the trust fund described in Section 10.01(d)(i), sinking fund payments, if any, (4) the rights (including the Trustee’s rights under Section 10.05) and immunities of the Trustee hereunder and the Trustee’s obligations with respect to the Securities of such series under Sections 10.02 and 10.04 and (5) the obligations of the Issuer under Section 3.02).

 

  

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(c)           The following subsection shall apply to the Securities of each series unless specifically otherwise provided in a Board Resolution, Officer’s Certificate or indenture supplemental hereto provided pursuant to Section 2.03.  In addition to the right to discharge of the Indenture pursuant to subsection (a) and to Legal Defeasance pursuant to subsection (b), above, the Issuer, at its option and at any time, by written notice executed by an officer delivered to the Trustee, may elect to have its obligations under any covenant contained in this Indenture or in the Board Resolution or supplemental indenture relating to such series pursuant to Section 2.03 discharged with respect to all Outstanding Securities of a series, this Indenture and any indentures supplemental to this Indenture with respect to such series (“Covenant Defeasance”), such discharge to be effective on the date the conditions set forth in clauses (i) through (iii) and (v) through (vi) of Section 10.01(d) are satisfied, and such Securities shall thereafter be deemed to be not “Outstanding” for the purposes of any direction, waiver, consent or declaration of Securityholders (and the consequences of any thereof) in connection with such covenants, but shall continue to be “Outstanding” for all other purposes under this Indenture.  For this purpose, such Covenant Defeasance means that, with respect to the Outstanding Securities of a series, the Issuer may omit to comply with and shall have no liability in respect of any term, condition or limitation set forth in any such covenant, whether directly or indirectly, by reason of any reference elsewhere herein to any such covenant or by reason of reference in any such covenant to any other provision herein or in any other document and such omission to comply shall not constitute an Event of Default under Section 5.01(c) or otherwise, but except as specified in this Section 10.01(c), the remainder of the Issuer’s obligations under the Securities of such series, this Indenture, and any indentures supplemental to this Indenture with respect to such series shall be unaffected thereby.

 

(d)           The following shall be the conditions to the application of Legal Defeasance under subsection (b) or Covenant Defeasance under subsection (c) to the Securities of the applicable series:

 

(i)           the Issuer irrevocably deposits or causes to be deposited in trust with the Trustee or, at the option of the Trustee, with a trustee satisfactory to the Trustee and the Company under the terms of an irrevocable trust agreement in form and substance satisfactory to the Trustee, cash or U.S. Government Obligations that will generate cash sufficient to pay principal of and interest on the Outstanding Securities of such series to maturity or redemption, as the case may be, and to pay all other amounts payable by it hereunder, provided that (A) the trustee of the irrevocable trust, if any, shall have been irrevocably instructed to pay such funds or the proceeds of such U.S. Government Obligations to the Trustee and (B) the Trustee shall have been irrevocably instructed to apply such funds or the proceeds of such U.S. Government Obligations to (x) the principal and interest on all Securities of such series on the date that such principal or interest is due and payable and (y) any mandatory sinking fund payments on the day on which such payments are due and payable in accordance with the terms of the Indenture and the Securities of such series, and the Issuer shall also pay or cause to be paid all other amounts payable hereunder with respect to such series;

 

  

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(ii)           the Issuer delivers to the Trustee an Officer’s Certificate stating that all conditions precedent specified herein relating to Legal Defeasance or Covenant Defeasance, as the case may be, have been complied with, and an Opinion of Counsel to the same effect;

 

(iii)           no Event of Default under subsection (a), (b), (d) or (e) of Section 5.01 shall have occurred and be continuing, and no event which with notice or lapse of time or both would become such an Event of Default shall have occurred and be continuing, on the date of such deposit;

 

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

 

(v)           in the event of an election for Covenant Defeasance under subsection (c), the Issuer shall have delivered to the Trustee an Opinion of Counsel to the effect that the Holders of such Securities will not recognize gain or loss for Federal income tax purposes as a result of the deposit and Covenant Defeasance to be effected with respect to such Securities and will be subject to Federal income tax on the same amount, in the same manner and at the same times as would be the case if such deposit and Covenant Defeasance were not to occur; and

 

  

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(vi)           notwithstanding any other provisions of this subsection (d), such defeasance shall be effected in compliance with any additional or substitute terms, conditions or limitations which may be imposed on the Issuer pursuant to Section 2.03.

 

After such irrevocable deposit made pursuant to this Section 10.01(d) and satisfaction of the other conditions set forth in this subsection (d), the Trustee upon request shall execute proper instruments acknowledging the discharge of the Issuer’s obligations pursuant to this Section 10.01.

 

Section 10.02                           Application by Trustee of Funds Deposited for Payment of Securities.  Subject to Section 10.04, all moneys deposited with the Trustee (or other trustee) pursuant to Section 10.01 shall be held in trust and applied by it to the payment, either directly or through any paying agent (including the Issuer acting as its own paying agent), to the Holders of the particular Securities of such series for the payment or redemption of which such moneys have been deposited with the Trustee, of all sums due and to become due thereon for principal and interest; but such money need not be segregated from other funds except to the extent required by law.

 

Section 10.03                           Repayment of Moneys Held by Paying Agent.  In connection with the satisfaction and discharge of this Indenture with respect to Securities of any series, all moneys then held by any paying agent under the provisions of this Indenture with respect to such series of Securities shall, upon demand of the Issuer, be repaid to it or paid to the Trustee and thereupon such paying agent shall be released from all further liability with respect to such moneys.

 

Section 10.04                           Return of Moneys Held by Trustee and Paying Agent Unclaimed for Two Years.  Any moneys deposited with or paid to the Trustee or any paying agent for the payment of the principal of, interest on or additional amounts in respect of any Security of any series and not applied but remaining unclaimed for two years after the date upon which such principal, interest or additional amount shall have become due and payable, shall be repaid to the Issuer by the Trustee for such series or such paying agent, and the Holder of the Securities of such series shall thereafter look only to the Issuer for any payment which such Holder may be entitled to collect, and all liability of the Trustee or any paying agent with respect to such moneys shall thereupon cease.

 

Section 10.05                           Indemnity for U.S. Government Obligations.  The Issuer shall pay and indemnify the Trustee against any tax, fee or other charge imposed on or assessed against the U.S. Government Obligations deposited pursuant to Section 10.01 or the principal or interest received in respect of such obligations.

 

ARTICLE 11

MISCELLANEOUS PROVISIONS

 

Section 11.01                           No Recourse.  No recourse under or upon any obligation, covenant or agreement of this Indenture, or of any Security, or for any claim based thereon or otherwise in respect thereof, shall be had against any incorporator, stockholder, officer or director, past, present or future as such, of the Issuer or of any predecessor or successor corporation, either directly or through the Issuer or any such predecessor or successor corporation, whether by virtue of any constitution, statute or rule of law, or by the enforcement of any assessment or penalty or otherwise; it being expressly understood that this Indenture and the obligations issued hereunder are solely corporate obligations, and that no such personal liability whatever shall attach to, or is or shall be incurred by, the incorporators, stockholders, officers or directors as such, of the Issuer or of any predecessor or successor corporation, or any of them, because of the creation of the indebtedness hereby authorized, or under or by reason of the obligations, covenants or agreements contained in this Indenture or in any of the Securities or implied therefrom; and that any and all such personal liability of every name and nature, either at common law or in equity or by constitution or statute, of, and any and all such rights and claims against, every such incorporator, stockholder, officer or director as such, because of the creation of the indebtedness hereby authorized, or under or by reason of the obligations, covenants or agreements contained in this Indenture or in any of the Securities or implied therefrom, are hereby expressly waived and released as a condition of, and as a consideration for, the execution of this Indenture and the issuance of such Securities.

 

  

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Section 11.02                           Provisions of Indenture for the Sole Benefit of Parties and Holders of Securities.  Nothing in this Indenture or in the Securities, expressed or implied, shall give or be construed to give to any person, firm or corporation, other than the parties hereto and their successors and the Holders of the Securities any legal or equitable right, remedy or claim under this Indenture or under any covenant or provision herein contained, all such covenants and provisions being for the sole benefit of the parties hereto and their successors and of the Holders of the Securities.

 

Section 11.03                           Successors and Assigns of Issuer Bound by Indenture.  All the covenants, stipulations, promises and agreements contained in this Indenture by or on behalf of the Issuer shall bind its successors and assigns, whether so expressed or not.

 

Section 11.04                           Notices and Demands on Issuer, Trustee and Holders of Securities.  Any notice or demand which by any provision of this Indenture is required or permitted to be given or served by the Trustee or by the Holders of Securities to or on the Issuer may be given or served by being deposited postage prepaid, first-class mail (except as otherwise specifically provided herein) addressed (until another address of the Issuer is filed by the Issuer with the Trustee) to CYREN Ltd., c/o CYREN Inc., 7925 Jones Branch Drive, Suite 5200, McLean, Virginia 22102, Attn: Chief Financial Officer.  Any notice, direction, request or demand by the Issuer or any Holder of Securities to or upon the Trustee shall be deemed to have been sufficiently given or made, for all purposes, if given or made at _______, ________, Attn: _______.

 

Where this Indenture provides for notice to Holders of Securities, such notice shall be sufficiently given (unless otherwise herein expressly provided) if in writing and mailed, first-class postage prepaid, to each Holder entitled thereto, at his or her last address as it appears in the Security register.  In case, by reason of the suspension of or irregularities in regular mail service, it shall be impracticable to mail notice of any event to Holders of Securities when said notice is required to be given pursuant to any provision of this Indenture or of the Securities, then any manner of giving such notice as shall be satisfactory to the Trustee shall be deemed to be a sufficient giving of such notice.

 

  

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In case, by reason of the suspension of or irregularities in regular mail service, it shall be impracticable to mail notice to the Issuer when such notice is required to be given pursuant to any provision of this Indenture, then any manner of giving such notice as shall be satisfactory to the Trustee shall be deemed to be a sufficient giving of such notice.

 

Neither the failure to give notice, nor any defect in any notice so given, to any particular Holder of a Security shall affect the sufficiency of such notice with respect to other Holders of Securities given as provided above.

 

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

 

Section 11.05                           Officer’s Certificates and Opinions of Counsel; Statements to Be Contained Therein.  Upon any application or demand by the Issuer to the Trustee to take any action under any of the provisions of this Indenture, the Issuer shall furnish to the Trustee an Officer’s Certificate stating that all conditions precedent 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 all such conditions precedent have been complied with, except that in the case of any such application or demand as to which the furnishing of such documents is specifically required by any provision of this Indenture relating to such particular application or demand, no additional certificate or opinion need be furnished.

 

Each certificate or opinion provided for in this Indenture and delivered to the Trustee with respect to compliance with a condition or covenant provided for in this Indenture shall include (a) a statement that the person making such certificate or opinion has read such covenant or condition, (b) 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, (c) a statement that, in the opinion of such person, he or she has made such examination or investigation as is necessary to enable him or her to express an informed opinion as to whether or not such covenant or condition has been complied with and (d) a statement as to whether or not, in the opinion of such person, such condition or covenant has been complied with.

 

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

 

  

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Any certificate, statement or opinion of an officer of the Issuer or of counsel may be based, insofar as it relates to accounting matters, upon a certificate or opinion of or representations by an accountant or firm of accountants in the employ of the Issuer, unless such officer or counsel, as the case may be, knows that the certificate or opinion or representations with respect to the accounting matters upon which his or her certificate, statement or opinion may be based as aforesaid are erroneous, or in the exercise of reasonable care should know that the same are erroneous.

 

Any certificate or opinion of any independent firm of public accountants filed with and directed to the Trustee shall contain a statement that such firm is independent.

 

Section 11.06                           Payments Due on Saturdays, Sundays and Holidays.  If the date of maturity of interest on or principal of the Securities of any series or the date fixed for redemption or repayment of any such Security, or the last day on which a Holder has the right to convert any Security, shall not be a Business Day, then payment of interest or principal, or any conversion, need not be made on such date, but may be made on the next succeeding Business Day with the same force and effect as if made on the date of maturity or the date fixed for redemption or on such last day for conversion, and no interest shall accrue for the period after such date.

 

Section 11.07                           Conflict of Any Provision of Indenture With Trust Indenture Act of 1939.  If and to the extent that any provision of this Indenture limits, qualifies or conflicts with another provision included in this Indenture by operation of Sections 310 to 317, inclusive, of the Trust Indenture Act of 1939, such incorporated provision shall control.

 

Section 11.08                           New York Law to Govern.  This Indenture and each Security shall be deemed to be a contract under the laws of the State of New York, and for all purposes shall be governed by and construed in accordance with the laws of such State without regard to any principle of conflict of laws that would require or permit the application of the laws of any other jurisdiction, except as may otherwise be required by mandatory provisions of law.

 

Section 11.09                           Counterparts.  This Indenture may be executed in any number of counterparts, each of which shall be an original; but such counterparts shall together constitute but one and the same instrument.

 

Section 11.10                           Effect of Headings.  The Article and Section headings herein and the Table of Contents are for convenience only and shall not affect the construction hereof.

 

Section 11.11                           Actions by Successor.  Any act or proceeding by any provision of this Indenture authorized or required to be done or performed by any board of directors or its equivalent, committee or officer of the Issuer shall and may be done and performed with like force and effect by the corresponding board, committee or officer of any corporation that shall at the time be the lawful successor of the Issuer.

 

  

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Section 11.12                           Severability.  In case any one or more of the provisions contained in this Indenture or in the Securities of any series shall for any reason be held to be invalid, illegal or unenforceable in any respect, such invalidity, illegality or unenforceability shall not affect any other provisions of this Indenture or of such Securities, but this Indenture and such Securities shall be construed as if such invalid or illegal or unenforceable provision had never been contained herein or therein.

 

ARTICLE 12

REDEMPTION OF SECURITIES AND SINKING FUNDS

 

Section 12.01                           Applicability of Article.  The provisions of this Article shall be applicable to the Securities of any series which are redeemable before their maturity or to any sinking fund for the retirement of Securities of a series, except as otherwise specified, as contemplated by Section 2.03 for Securities of such series.

 

Section 12.02                           Notice of Redemption; Partial Redemptions.  Notice of redemption to the Holders of Securities of any series to be redeemed as a whole or in part at the option of the Issuer shall be given by mailing notice of such redemption by first class mail, postage prepaid, at least 30 days and not more than 60 days prior to the date fixed for redemption to such Holders of Securities of such series at their last addresses as they shall appear upon the Security register.  Any notice which is given in the manner herein provided shall be conclusively presumed to have been duly given, whether or not the Holder receives the notice.  Failure to give notice or any defect in the notice to the Holder of any Security of a series designated for redemption as a whole or in part shall not affect the validity of the proceedings for the redemption of any other Security of such series.

 

The notice of redemption to each such Holder shall specify the principal amount of each Security of such series held by such Holder to be redeemed, the date fixed for redemption, the redemption price, the place or places of payment, that payment will be made upon presentation and surrender of such Securities, that such redemption is pursuant to the mandatory or optional sinking fund, or both, if such be the case, that interest accrued to the date fixed for redemption will be paid as specified in such notice and that on and after said date interest thereon or on the portions thereof to be redeemed will cease to accrue and shall also specify, if applicable, the conversion price then in effect and the date on which the right to convert such Securities or the portions thereof to be redeemed will expire.  In case any Security of a series is to be redeemed in part only, the notice of redemption shall state the portion of the principal amount thereof to be redeemed and shall state that on and after the date fixed for redemption, upon surrender of such Security, a new Security or Securities of such series in principal amount equal to the unredeemed portion thereof will be issued.

 

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

 

  

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On or before the redemption date specified in the notice of redemption given as provided in this Section, the Issuer will deposit with the Trustee or with one or more paying agents (or, if the Issuer is acting as its own paying agent, set aside, segregate and hold in trust as provided in Section 3.04) an amount of money sufficient to redeem on the redemption date all the Securities of such series so called for redemption (other than those Securities theretofore surrendered for conversion into Ordinary Shares in accordance with their terms) at the appropriate redemption price, together with accrued interest to the date fixed for redemption.  If any Security called for redemption is converted pursuant hereto and in accordance with the terms thereof, any money deposited with the Trustee or any paying agent or so segregated and held in trust for the redemption of such Security shall be paid to the Issuer upon the Issuer’s request, or, if then held by the Issuer, shall be discharged from such trust.  The Issuer will deliver to the Trustee at least 10 days prior to the date the notice required to be delivered to the Holders is to be sent (unless a shorter time period shall be acceptable to the Trustee) an Officer’s Certificate (which need not comply with Section 11.05) stating the aggregate principal amount of Securities to be redeemed.  In case of a redemption at the election of the Issuer prior to the expiration of any restriction on such redemption, the Issuer shall deliver to the Trustee, prior to the giving of any notice of redemption to Holders pursuant to this Section, an Officer’s Certificate stating that such restriction has been complied with.

 

If less than all the Securities of a series are to be redeemed, the Trustee shall select, in such manner as it shall deem appropriate and fair, Securities of such series to be redeemed in whole or in part.  Securities may be redeemed in part in multiples equal to the minimum authorized denomination for Securities of such series or any multiple thereof.  The Trustee shall promptly notify the Issuer in writing of the Securities of such series selected for redemption and, in the case of any Securities of such series selected for partial redemption, the principal amount thereof to be redeemed.  For all purposes of this Indenture, unless the context otherwise requires, all provisions relating to the redemption of Securities of any series 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.  If any Security selected for partial redemption is surrendered for conversion after such selection, the converted portion of such Security shall be deemed (so far as may be possible) to be the portion selected for redemption.

 

Section 12.03                           Payment of Securities Called for Redemption.  If notice of redemption has been given as above provided, the Securities or portions of Securities specified in such notice shall become due and payable on the date and at the place stated in such notice at the applicable redemption price, together with interest accrued to the date fixed for redemption, and on and after said date (unless the Issuer shall default in the payment of such Securities at the redemption price, together with interest accrued to said date) interest on the Securities or portions of Securities so called for redemption shall cease to accrue, and such Securities shall cease from and after the date fixed for redemption to be convertible into Ordinary Shares (to the extent otherwise convertible in accordance with their terms), if applicable, and cease to be entitled to any benefit or security under this Indenture, and except as provided in the paragraph below, the Holders thereof shall have no right in respect of such Securities except the right to receive the redemption price thereof and unpaid interest to the date fixed for redemption.  On presentation and surrender of such Securities at a place of payment specified in said notice, said Securities or the specified portions thereof shall be paid and redeemed by the Issuer at the applicable redemption price, together with interest accrued thereon to the date fixed for redemption; provided, that payment of interest becoming due on or prior to the date fixed for redemption shall be payable to the Holders of such Securities registered as such on the relevant record date subject to the terms and provisions of Sections 2.03 and 2.07 hereof.

 

  

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

 

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

 

Section 12.04                           Exclusion of Certain Securities from Eligibility for Selection for Redemption.  Securities shall be excluded from eligibility for selection for redemption if they are identified by registration and certificate number in an Officer’s Certificate delivered to the Trustee at least 40 days prior to the last date on which notice of redemption may be given as being owned of record and beneficially by, and not pledged or hypothecated by either (a) the Issuer or (b) an entity specifically identified in such written statement as directly or indirectly controlling or controlled by or under direct or indirect common control with the Issuer.

 

Section 12.05                           Mandatory and Optional Sinking Funds.  The minimum amount of any sinking fund payment provided for by the terms of the Securities of any series is herein referred to as a “mandatory sinking fund payment”, and any payment in excess of such minimum amount provided for by the terms of the Securities of any series is herein referred to as an “optional sinking fund payment”.  The date on which a sinking fund payment is to be made is herein referred to as the “sinking fund payment date”.

 

In lieu of making all or any part of any mandatory sinking fund payment with respect to any series of Securities in cash, the Issuer may at its option (a) deliver to the Trustee Securities of such series theretofore purchased or otherwise acquired (except upon redemption pursuant to the mandatory sinking fund) by the Issuer or receive credit for Securities of such series (not previously so credited) theretofore purchased or otherwise acquired (except as aforesaid) by the Issuer and delivered to the Trustee for cancellation pursuant to Section 2.10 and, if applicable, receive credit for Securities (not previously so credited) converted into Ordinary Shares and so delivered to the Trustee for cancellation, (b) receive credit for optional sinking fund payments (not previously so credited) made pursuant to this Section, or (c) receive credit for Securities of such series (not previously so credited) redeemed by the Issuer through any optional redemption provision contained in the terms of such series.  Securities so delivered or credited shall be received or credited by the Trustee at the sinking fund redemption price specified in such Securities.

 

  

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On or before the 60th day next preceding each sinking fund payment date for any series, the Issuer will deliver to the Trustee an Officer’s Certificate (which need not contain the statements required by Section 11.05) (a) specifying the portion of the mandatory sinking fund payment to be satisfied by payment of cash and the portion to be satisfied by credit of Securities of such series and the basis for such credit, (b) stating that none of the Securities of such series for which credit will be taken has theretofore been so credited, (c) stating that no defaults in the payment of interest or Events of Default with respect to such series have occurred (which have not been waived or cured) and are continuing and (d) stating whether or not the Issuer intends to exercise its right to make an optional sinking fund payment with respect to such series and, if so, specifying the amount of such optional sinking fund payment which the Issuer intends to pay on or before the next succeeding sinking fund payment date.  Any Securities of such series to be credited and required to be delivered to the Trustee in order for the Issuer to be entitled to credit therefor as aforesaid which have not theretofore been delivered to the Trustee shall be delivered for cancellation pursuant to Section 2.10 to the Trustee with such Officer’s Certificate (or reasonably promptly thereafter if acceptable to the Trustee).  Such Officer’s Certificate shall be irrevocable and upon its receipt by the Trustee the Issuer shall become unconditionally obligated to make all the cash payments or payments therein referred to, if any, on or before the next succeeding sinking fund payment date.  Failure of the Issuer, on or before any such 60th day, to deliver such Officer’s Certificate and Securities specified in this paragraph, if any, shall not constitute a default but shall constitute, on and as of such date, the irrevocable election of the Issuer that the mandatory sinking fund payment for such series due on the next succeeding sinking fund payment date shall be paid entirely in cash without the option to deliver or credit Securities of such series in respect thereof.

 

If the sinking fund payment or payments (mandatory or optional or both) to be made in cash on the next succeeding sinking fund payment date plus any unused balance of any preceding sinking fund payments made in cash shall exceed $50,000 (or the equivalent thereof in any Foreign Currency or a lesser sum in Dollars or in any Foreign Currency if the Issuer shall so request) with respect to the Securities of any particular series, such cash shall be applied on the next succeeding sinking fund payment date to the redemption of Securities of such series at the sinking fund redemption price together with accrued interest to the date fixed for redemption.  If such amount shall be $50,000 (or the equivalent thereof in any Foreign Currency) or less and the Issuer makes no such request then it shall be carried over until a sum in excess of $50,000 (or the equivalent thereof in any Foreign Currency) is available, which delay in accordance with this paragraph shall not be a default or breach of the obligation to make such payment.  The Trustee shall select, in the manner provided in Section 12.02, for redemption on such sinking fund payment date a sufficient principal amount of Securities of such series to which such cash may be applied, as nearly as may be, and shall (if requested in writing by the Issuer) inform the Issuer of the serial numbers of the Securities of such series (or portions thereof) so selected.  The Trustee, in the name and at the expense of the Issuer (or the Issuer, if it shall so request the Trustee in writing), shall cause notice of redemption of the Securities of such series to be given in substantially the manner provided in Section 12.02 (and with the effect provided in Section 12.03) for the redemption of Securities of such series in part at the option of the Issuer.  The amount of any sinking fund payments not so applied or allocated to the redemption of Securities of such series shall be added to the next cash sinking fund payment for such series and, together with such payment, shall be applied in accordance with the provisions of this Section.  Any and all sinking fund moneys held on the stated maturity date of the Securities of any particular series (or earlier, if such maturity is accelerated), which are not held for the payment or redemption of particular Securities of such series, shall be applied, together with other moneys, if necessary, sufficient for the purpose, to the payment of the principal of, and interest on, the Securities of such series at maturity.  The Issuer’s obligation to make a mandatory or optional sinking fund payment shall automatically be reduced by an amount equal to the sinking fund redemption price allocable to any Securities or portions thereof called for redemption pursuant to the preceding paragraph on any sinking fund payment date and converted into Ordinary Shares in accordance with the terms of such Securities; provided that, if the Trustee is not the conversion agent for the Securities, the Issuer or such conversion agent shall give the Trustee written notice on or prior to the date fixed for redemption of the principal amount of Securities or portions thereof so converted.

 

  

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On or before each sinking fund payment date, the Issuer shall pay to the Trustee in cash or shall otherwise provide for the payment of all interest accrued to the date fixed for redemption on Securities to be redeemed on such sinking fund payment date.

 

The Trustee shall not redeem or cause to be redeemed any Securities of a series with sinking fund moneys or give any notice of redemption of Securities for such series by operation of the sinking fund during the continuance of a default in payment of interest on such Securities or of any Event of Default except that, where the mailing of notice of redemption of any Securities shall theretofore have been made, the Trustee shall redeem or cause to be redeemed such Securities, provided that it shall have received from the Issuer a sum sufficient for such redemption.  Except as aforesaid, any moneys in the sinking fund for such series at the time when any such default or Event of Default shall occur, and any moneys thereafter paid into the sinking fund, shall, during the continuance of such default or Event of Default, be deemed to have been collected under Article 5 and held for the payment of all such Securities.  In case such Event of Default shall have been waived as provided in Section 5.10, or the default cured on or before the 60th day preceding the sinking fund payment date in any year, such moneys shall thereafter be applied on such sinking fund payment date in accordance with this Section to the redemption of such Securities.

 

[Signature pages follow]

 

  

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IN WITNESS WHEREOF, the parties hereto have caused this Indenture to be duly executed as of _____________.

 

	 	 
CYREN Ltd.

 

By:      ______________________      

    Name:

    Title:

 

Attest:

 

 
By:      ______________________      

    Name:

    Title:

 

 

____________, Trustee

 

 
By:      ______________________      

    Name:

    Title:

 

[Signature page to Indenture: Senior Debt Securities]

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