Document:

<PAGE>

                                                                     Exhibit 4.1

                     ____________________________________

                            DUPONT PHOTOMASKS, INC.

                                      and

                EQUISERVE TRUST COMPANY, N.A., as Rights Agent

                     ____________________________________

                               RIGHTS AGREEMENT

                         Dated as of January 30, 2001

                     ____________________________________
<PAGE>

                                TABLE OF CONTENTS
                                -----------------

<TABLE>
<CAPTION>
                                                                                   Page
                                                                                   ----
<S>                                                                                <C>
Section 1.   Certain Definitions..................................................   1

Section 2.   Appointment of Rights Agent..........................................   9

Section 3.   Issue of Right Certificates..........................................   9

Section 4.   Form of Right Certificates...........................................  11

Section 5.   Countersignature and Registration....................................  11

Section 6.   Transfer, Split Up, Combination and Exchange of Right
             Certificates; Mutilated, Destroyed, Lost or Stolen Right
             Certificates.........................................................  11

Section 7.   Exercise of Rights, Purchase Price; Expiration Date of Rights........  12

Section 8.   Cancellation and Destruction of Right Certificates...................  13

Section 9.   Availability of Shares of Preferred Stock............................  14

Section 10.  Preferred Stock Record Date..........................................  15

Section 11.  Adjustment of Purchase Price, Number of Shares and Number
             of Rights............................................................  15

Section 12.  Certificate of Adjusted Purchase Price or Number of Shares...........  23

Section 13.  Consolidation, Merger or Sale or Transfer of Assets or
             Earning Power........................................................  23

Section 14.  Fractional Rights and Fractional Shares..............................  26

Section 15.  Rights of Action.....................................................  27

Section 16.  Agreement of Right Holders...........................................  28

Section 17.  Right Certificate Holder Not Deemed a Stockholder....................  28

Section 18.  Concerning the Rights Agent..........................................  28

Section 19.  Merger or Consolidation or Change of Name of Rights Agent............  29

Section 20.  Duties of Rights Agent...............................................  30

Section 21.  Change of Rights Agent...............................................  31

Section 22.  Issuance of New Right Certificates...................................  32

Section 23.  Redemption...........................................................  33

Section 24.  Exchange.............................................................  33
</TABLE>
<PAGE>

<TABLE>
<S>                                                                                 <C>
Section 25.  Notice of Certain Events.............................................  34

Section 26.  Notices..............................................................  35

Section 27.  Supplements and Amendments...........................................  36

Section 28.  Successors...........................................................  36

Section 29.  Benefits of this Agreement...........................................  36

Section 30.  Determinations and Actions by the Board of Directors.................  36

Section 31.  Severability.........................................................  36

Section 32.  Governing Law........................................................  37

Section 33.  Counterparts.........................................................  37

Section 34.  Descriptive Headings.................................................  37
</TABLE>
<PAGE>

                               RIGHTS AGREEMENT
                               ----------------

            Rights Agreement, dated as of January 30, 2001 ("Agreement"),
between DuPont Photomasks, Inc., a Delaware corporation (the "Company"), and
EquiServe Trust Company, N.A., as Rights Agent (the "Rights Agent").

            The Board of Directors of the Company has authorized and declared a
dividend of one preferred share purchase right (a "Right") for each share of
Common Stock (as hereinafter defined) of the Company outstanding as of the Close
of Business (as defined below) on February 20, 2001 (the "Record Date"), each
Right representing the right to purchase one one-thousandth (subject to
adjustment) of a share of Preferred Stock (as hereinafter defined), upon the
terms and subject to the conditions herein set forth, and has further authorized
and directed the issuance of one Right (subject to adjustment as provided
herein) with respect to each share of Common Stock that shall become outstanding
between the Record Date and the earlier of the Distribution Date and the
Expiration Date (as such terms are hereinafter defined); provided, however, that
                                                         --------
Rights may be issued with respect to shares of Common Stock that shall become
outstanding after the Distribution Date and prior to the Expiration Date in
accordance with Section 22.

            Accordingly, in consideration of the premises and the mutual
agreements herein set forth, the parties hereby agree as follows:

            Section 1. Certain Definitions. For purposes of this Agreement, the
                       -------------------
following terms have the meaning indicated:

            (a)     "Acquiring Person" shall mean any Person (as such term is
hereinafter defined) who or which shall be the Beneficial Owner (as such term is
hereinafter defined) of 15% or more of the shares of Common Stock then
outstanding, but shall not include an Exempt Person (as such term is hereinafter
defined); provided, however, that (i) if the Board of Directors of the Company
          --------  -------
determines in good faith that a Person who would otherwise be an "Acquiring
Person" no longer qualifies as an Exempt Person inadvertently or became the
Beneficial Owner of a number of shares of Common Stock such that the Person
would otherwise qualify as an "Acquiring Person" inadvertently (including,
without limitation, because (A) such Person was unaware that it beneficially
owned a percentage of Common Stock that would otherwise cause such Person to be
an "Acquiring Person" or (B) such Person was aware of the extent of its
Beneficial Ownership of Common Stock but had no actual knowledge of the
consequences of such Beneficial Ownership under this Agreement) and without any
intention of changing or influencing control of the Company, then such Person
shall not be deemed to be or to have become an "Acquiring Person" for any
purposes of this Agreement unless and until such Person shall have failed to
divest itself, as soon as practicable (as determined, in good faith, by the
Board of Directors of the Company), of Beneficial Ownership of a sufficient
number of shares of Common Stock so that such Person would no longer otherwise
qualify as an "Acquiring Person"; (ii) if, as of the date hereof or prior to the
first public announcement of the adoption of this Agreement, any Person (other
than Du Pont) is or becomes the Beneficial Owner of 15% or more of the shares of
Common Stock outstanding, such Person shall not be deemed to be or to become an
"Acquiring Person" unless and until such time as such Person shall, after the
first public announcement of the adoption of this Agreement, become the
Beneficial Owner of additional shares of Common Stock (other than pursuant to a
dividend or distribution paid or made by the Company on the outstanding Common
Stock or pursuant to a split or subdivision of the outstanding Common Stock),
unless, upon becoming the Beneficial Owner of such additional shares of Common
Stock, such Person is not then the Beneficial Owner of 15% or more of the shares
of Common Stock then outstanding; and (iii) no Person shall become an "Acquiring
Person" as the result of an acquisition of shares of Common Stock by the Company
which, by reducing the number of shares outstanding, increases the proportionate
number of shares of Common Stock beneficially owned by such Person to 15% or
more of the shares of Common Stock then outstanding, provided, however, that if
                                                     --------  -------
a Person shall become the Beneficial Owner of 15% or more of the shares of
Common Stock then outstanding by reason of such share acquisitions by the
Company and shall thereafter become the Beneficial Owner of any additional
shares of Common Stock (other than pursuant to a dividend or distribution paid
or made by the Company on the outstanding Common Stock or pursuant to a split or
subdivision of the

                                       1
<PAGE>

outstanding Common Stock), then such Person shall be deemed to be an "Acquiring
Person" unless upon becoming the Beneficial Owner of such additional shares of
Common Stock such Person does not beneficially own 15% or more of the shares of
Common Stock then outstanding. For all purposes of this Agreement, any
calculation of the number of shares of Common Stock outstanding at any
particular time, including for purposes of determining the particular percentage
of such outstanding shares of Common Stock of which any Person is the Beneficial
Owner, shall be made in accordance with the last sentence of Rule 13d-3(d)(1)(i)
of the General Rules and Regulations under the Securities Exchange Act of 1934,
as amended (the "Exchange Act"), as in effect on the date hereof.

            (b)     "Affiliate" and "Associate" shall have the respective
meanings ascribed to such terms in Rule 12b-2 of the General Rules and
Regulations under the Exchange Act, as in effect on the date hereof.

            (c)     A Person shall be deemed the "Beneficial Owner" of, shall be
deemed to have "Beneficial Ownership" of and shall be deemed to "beneficially
own" any securities:

                    (i)    which such Person or any of such Person's Affiliates
or Associates is deemed to beneficially own, directly or indirectly, within the
meaning of Rule l3d-3 of the General Rules and Regulations under the Exchange
Act as in effect on the date hereof;

                    (ii)   which such Person or any of such Person's Affiliates
or Associates has (A) the right to acquire (whether such right is exercisable
immediately or only after the passage of time) pursuant to any agreement,
arrangement or understanding (other than customary agreements with and between
underwriters and selling group members with respect to a bona fide public
offering of securities), or upon the exercise of conversion rights, exchange
rights, rights, warrants or options, or otherwise; provided, however, that a
                                                   --------  -------
Person shall not be deemed the Beneficial Owner of, or to beneficially own, (x)
securities tendered pursuant to a tender or exchange offer made by or on behalf
of such Person or any of such Person's Affiliates or Associates until such
tendered securities are accepted for purchase, (y) securities which such Person
has a right to acquire upon the exercise of Rights at any time prior to the time
that any Person becomes an Acquiring Person or (z) securities issuable upon the
exercise of Rights from and after the time that any Person becomes an Acquiring
Person if such Rights were acquired by such Person or any of such Person's
Affiliates or Associates prior to the Distribution Date or pursuant to Section
3(a) or Section 22 hereof ("Original Rights") or pursuant to Section 11(i) or
Section 11(n) with respect to an adjustment to Original Rights; or (B) the right
to vote pursuant to any agreement, arrangement or understanding; provided,
                                                                 --------
however, that a Person shall not be deemed the Beneficial Owner of, or to
-------
beneficially own, any security by reason of such agreement, arrangement or
understanding if the agreement, arrangement or understanding to vote such
security (1) arises solely from a revocable proxy or consent given to such
Person in response to a public proxy or consent solicitation made pursuant to,
and in accordance with, the applicable rules and regulations promulgated under
the Exchange Act and (2) is not also then reportable on Schedule 13D under the
Exchange Act (or any comparable or successor report); or

                    (iii)  which are beneficially owned, directly or indirectly,
by any other Person and with respect to which such Person or any of such
Person's Affiliates or Associates has any agreement, arrangement or
understanding (other than customary agreements with and between underwriters and
selling group members with respect to a bona fide public offering of securities)
for the purpose of acquiring, holding, voting (except to the extent contemplated
by the proviso to Section 1(c)(ii)(B)) or disposing of such securities of the
Company;

provided, however, that no Person who is an officer, director or employee of an
--------  -------
Exempt Person shall be deemed, solely by reason of such Person's status or
authority as such, to be the "Beneficial Owner" of, to have "Beneficial
Ownership" of or to "beneficially own" any securities that are "beneficially
owned" (as defined in this Section l(c)), including, without limitation, in a
fiduciary capacity, by an Exempt Person or by any other such officer, director
or employee of an Exempt Person.

                                       2
<PAGE>

            (d)   "Business Day" shall mean any day other than a Saturday, a
Sunday or a day on which banking institutions in the State of New York or the
city in which the principal office of the Rights Agent is located are authorized
or obligated by law or executive order to close.

            (e)   "Close of Business" on any given date shall mean 5:00 P.M.,
New York City time, on such date; provided, however, that if such date is not a
Business Day it shall mean 5:00 P.M., New York City time, on the next succeeding
Business Day.

            (f)   "Common Stock" when used with reference to the Company shall
mean the Common Stock, presently par value $.01 per share, of the Company.
"Common Stock" when used with reference to any Person other than the Company
shall mean the common stock (or, in the case of an unincorporated entity, the
equivalent equity interest) with the greatest voting power of such other Person
or, if such other Person is a Subsidiary of another Person, the Person or
Persons which ultimately control such first-mentioned Person.

            (g)   "Common Stock Equivalents" shall have the meaning set forth in
Section 11(a)(iii) hereof.

            (h)   "Current Value" shall have the meaning set forth in Section
11(a)(iii) hereof.

            (i)   "Distribution Date" shall have the meaning set forth in
Section 3 hereof.

            (j)   "Du Pont Change in Control" shall mean the occurrence of any
one of the following events:

                  (i)   A Person is the Beneficial Owner of thirty percent (30%)
            or more of either (x) the then outstanding common stock, par value
            $1.00 per share, of E.I. Du Pont de Nemours & Co. ("Du Pont") ("Du
            Pont Common Stock"), or (y) the combined voting power of Du Pont's
            then outstanding voting securities entitled to vote for the election
            of directors (the "Voting Securities"); provided however, in
            determining whether a Du Pont Change in Control has occurred, Du
            Pont Common Stock or Voting Securities which are acquired in a "Non-
            Control Acquisition" (as hereinafter defined) shall not result in a
            Du Pont Change in Control. A "Non-Control Acquisition" shall mean an
            acquisition by (x) an employee benefit plan (or a trust forming a
            part thereof) maintained by (A) Du Pont or (B) any corporation or
            other Person of which a majority of its voting power or its voting
            equity securities or equity interest is owned, directly or
            indirectly, by Du Pont (for purposes of this definition, a "Related
            Entity"), (y) Du Pont or any Related Entity, or (z) any Person in
            connection with a "Non-Control Transaction" (as hereinafter
            defined);

                  (ii)  The individuals who, as of January 30, 2001 are members
            of the Board of Du Pont (the "Incumbent Board"), cease for any
            reason to constitute at least a majority of the members of the Du
            Pont Board; provided however, that if the election, or nomination
            for election by Du Pont's common stockholders, of any new director
            was approved by a vote of at least two-thirds of the Incumbent
            Board, such new director shall, for purposes hereof, be considered
            as a member of the Incumbent Board, provided, further, however, that
            no individual shall be considered a member of the Incumbent Board if
            such individual initially assumed office as a result of either an
            actual or threatened "Election Contest" (as described in Rule 14a-11
            promulgated under the Securities Exchange Act of 1934) or other
            actual or threatened solicitation of proxies or consents by or on
            behalf of a Person other than the Du Pont Board (a "Proxy Contest"),
            including by reason of any agreement intended to avoid or settle any
            Election Contest or Proxy Contest; or

                  (iii) The consummation of:

                        (A)   A merger, consolidation or reorganization with or
                        into Du Pont or in connection with which securities of
                        Du Pont are issued (a "Merger"),

                                       3
<PAGE>

                        unless the Merger is a "Non-Control Transaction." A
                        "Non-Control Transaction" shall mean a Merger if:

                              a)   the stockholders of Du Pont immediately
                                   before such Merger own directly or indirectly
                                   immediately following the Merger at least
                                   sixty-six and two-thirds percent (66-2/3%) of
                                   the outstanding common stock and the combined
                                   voting power of the outstanding voting
                                   securities of (x) the corporation resulting
                                   from such Merger (the "Surviving
                                   Corporation"), if fifty percent (50%) or more
                                   of the combined voting power of the then
                                   outstanding voting securities of the
                                   Surviving Corporation is not beneficially
                                   owned, directly or indirectly by another
                                   corporation (a "Parent Corporation"), or (y)
                                   the Parent Corporation, if fifty percent
                                   (50%) or more of the combined voting power of
                                   the Surviving Corporation's then outstanding
                                   voting securities is beneficially owned,
                                   directly or indirectly, by a Parent
                                   Corporation;

                              b)   the individuals who were members of the
                                   Incumbent Board immediately prior to the
                                   execution of the agreement providing for the
                                   Merger, constitute at least two-thirds of the
                                   members of the board of directors of (x) the
                                   Surviving Corporation, if fifty percent (50%)
                                   or more of the combined voting power of the
                                   then outstanding voting securities of the
                                   Surviving Corporation is not beneficially
                                   owned, directly or indirectly by a Parent
                                   corporation, or (y) the Parent Corporation,
                                   if fifty percent (50%) or more of the
                                   combined voting power of the Surviving
                                   Corporation's then outstanding voting
                                   securities is beneficially owned, directly or
                                   indirectly, by a Parent Corporation; and

                              c)   no Person other than (1) Du Pont or another
                                   corporation that is a party to the agreement
                                   of Merger, (2) any Related Entity, (3) any
                                   employee benefit plan (or any trust forming a
                                   part thereof) that, immediately prior to the
                                   Merger, was maintained by Du Pont or any
                                   Related Entity, or (4) any Person who,
                                   immediately prior to the Merger was the
                                   Beneficial Owner of twenty percent (20%) or
                                   more of the then outstanding Du Pont Common
                                   Stock or Voting Securities, is the Beneficial
                                   Owner, directly or indirectly, of thirty
                                   percent (30%) or more of the combined voting
                                   power of the outstanding voting securities or
                                   common stock of (x) the Surviving
                                   Corporation, if fifty percent (50%) or more
                                   of the combined voting power of the then
                                   outstanding voting securities is not
                                   beneficially owned, directly or indirectly,
                                   by a Parent Corporation, or (y) the Parent
                                   Corporation, if fifty percent (50%) or more
                                   of the combined voting power of the Surviving
                                   Corporation's then outstanding voting
                                   securities is beneficially owned, directly or
                                   indirectly, by a Parent Corporation;
                                   provided, however, that any Person described
                                   in clause (4) of this subsection (c) may not,
                                   immediately following the Merger,
                                   beneficially own more than forty-nine and
                                   nine-tenths percent (49.9%) of the combined
                                   voting power of the

                                       4
<PAGE>

                                   outstanding voting securities of the
                                   Surviving Corporation or the Parent
                                   Corporation, as applicable.

                        (B)   A complete liquidation or dissolution of Du Pont;
                        or

                        (C)   The sale or other disposition of all or
                        substantially all of the assets of Du Pont to any Person
                        (other than a transfer to a Related Entity or under
                        conditions that would constitute a Non-Control
                        Transaction with the disposition of assets being
                        regarded as a Merger for this purpose) or the
                        distribution to Du Pont stockholders of the stock of a
                        Related Entity or any other assets (except a cash
                        dividend).

            Notwithstanding the foregoing, a Du Pont Change in Control shall not
            be deemed to occur solely because any Person (the "Subject Person")
            becomes the Beneficial Owner of more than the permitted amount of
            the then outstanding Du Pont Common Stock or Voting Securities as a
            result of the acquisition of Du Pont Common Stock or Voting
            Securities by Du Pont which, by reducing the number of shares of Du
            Pont Common Stock or Voting Securities then outstanding, increases
            the proportional number of shares beneficially owned by the Subject
            Person, provided that if a Du Pont Change in Control would occur
            (but for the operation of this sentence) as a result of the
            acquisition of Du Pont Common Stock or Voting Securities by Du Pont,
            and after such share acquisition by Du Pont, the Subject Person
            becomes the Beneficial Owner of any additional Du Pont Common Stock
            or Voting Securities which increases the percentage of the then
            outstanding Du Pont Common Stock or Voting Securities beneficially
            owned by the Subject Person, then a Du Pont Change in Control shall
            occur, unless the Subject Person beneficially owns less than the
            permitted amount of the then outstanding Du Pont Common Stock and
            Voting Securities.

            (k)   "Equivalent Preferred Shares" shall have the meaning set forth
in Section 11(b) hereof.

            (l)   "Exempt Person" shall mean (i) the Company or any Subsidiary
(as such term is hereinafter defined) of the Company, in each case including,
without limitation, in its fiduciary capacity, or any employee benefit plan of
the Company or of any Subsidiary of the Company, or any entity or trustee
holding Common Stock for or pursuant to the terms of any such plan or for the
purpose of funding any such plan or funding other employee benefits for
employees of the Company or of any Subsidiary of the Company, and (ii) the
corporation known as of the date hereof as Du Pont or any Affiliate or Associate
of Du Pont, unless and until (1) Du Pont or such Affiliate or Associate shall be
deemed to be the Beneficial Owner of more than 33% of the total number of shares
of Common Stock outstanding (on an as converted basis), assuming full conversion
of all securities and full exercise of all outstanding rights, options and
warrants to acquire the Common Stock, (2) Du Pont or such Affiliate or Associate
makes a public announcement of the intent to commence a tender or exchange offer
which would result in Du Pont, or any Affiliate or Associate of Du Pont,
becoming the Beneficial Owner of more than 33% of the total number of shares of
Common Stock outstanding (on an as converted basis), assuming full conversion of
all securities and full exercise of all outstanding rights, options and warrants
to acquire the Common Stock, or (3) there is a Du Pont Change of Control.

            (m)   "Exchange Ratio" shall have the meaning set forth in Section
24 hereof.

            (n)   "Expiration Date" shall have the meaning set forth in Section
7 hereof.

            (o)   "Final Expiration Date" shall have the meaning set forth in
Section 7 hereof.

            (p)   "Flip-In Event" shall have the meaning set forth in Section
11(a)(ii) hereof.

            (q)   "NASDAQ" shall mean The Nasdaq Stock Market.

                                       5
<PAGE>

            (r)   "New York Stock Exchange" shall mean the New York Stock
Exchange, Inc.

            (s)   "Person" shall mean any individual, firm, corporation,
partnership, limited liability company, trust or other entity, and shall include
any successor (by merger or otherwise) to such entity.

            (t)   "Preferred Stock" shall mean the Series A Junior Participating
Preferred Stock, par value $.01 per share, of the Company having the rights and
preferences set forth in the Form of Certificate of Designation attached to this
Agreement as Exhibit A.

            (u)   "Principal Party" shall have the meaning set forth in Section
13(b) hereof.

            (v)   "Purchase Price" shall have the meaning set forth in Section
7(b) hereof.

            (w)   "Redemption Date" shall have the meaning set forth in Section
7 hereof.

            (x)   "Redemption Price" shall have the meaning set forth in Section
23 hereof.

            (y)   "Right Certificate" shall have the meaning set forth in
Section 3 hereof.

            (z)   "Section 11(a)(ii) Trigger Date" shall have the meaning set
forth in Section 11(a)(iii) hereof.

            (aa)  "Securities Act" shall mean the Securities Act of 1933, as
amended.

            (bb)  "Spread" shall have the meaning set forth in Section
11(a)(iii) hereof.

            (cc)  "Stock Acquisition Date" shall mean the first date of public
announcement (which, for purposes of this definition, shall include, without
limitation, a report filed pursuant to Section 13(d) of the Exchange Act) by the
Company or an Acquiring Person that an Acquiring Person has become such, or such
earlier date as a majority of the Board of Directors shall become aware of the
existence of an Acquiring Person.

            (dd)  "Subsidiary" of any Person shall mean any corporation or other
entity of which securities or other ownership interests having ordinary voting
power sufficient to elect a majority of the board of directors or other persons
performing similar functions are beneficially owned, directly or indirectly, by
such Person, and any corporation or other entity that is otherwise controlled by
such Person.

            (ee)  "Substitution Period" shall have the meaning set forth in
Section 11(a)(iii) hereof.

            (ff)  "Summary of Rights" shall have the meaning set forth in
Section 3 hereof.

            (ff)  "Trading Day" shall have the meaning set forth in Section
11(d)(i) hereof.

            Section 2.  Appointment of Rights Agent. The Company hereby appoints
                        ---------------------------
the Rights Agent to act as agent for the Company and the holders of the Rights
(who, in accordance with Section 3 hereof, shall prior to the Distribution Date
be the holders of Common Stock) in accordance with the terms and conditions
hereof, and the Rights Agent hereby accepts such appointment. The Company may
from time to time appoint such co-Rights Agents as it may deem necessary or
desirable upon ten (10) days prior written notice to the Rights Agent. The
Rights Agent shall have no duty to supervise, and shall in no event be liable
for the acts or omissions of any such co-Rights Agent.

                                       6
<PAGE>

            Section 3.  Issue of Right Certificates.
                        ---------------------------

            (a)     Until the Close of Business on the earlier of (i) the tenth
day after the Stock Acquisition Date or (ii) the tenth Business Day (or such
later date as may be determined by action of the Board of Directors prior to
such time as any Person becomes an Acquiring Person) after the date of the
commencement by any Person (other than an Exempt Person) of, or of the first
public announcement of the intention of such Person (other than an Exempt
Person) to commence, a tender or exchange offer the consummation of which would
result in any Person (other than an Exempt Person) becoming the Beneficial Owner
of shares of Common Stock aggregating 15% or more of the Common Stock then
outstanding (the earlier of such dates being herein referred to as the
"Distribution Date", provided, however, that if either of such dates occurs
                     --------  -------
after the date of this Agreement and on or prior to the Record Date, then the
Distribution Date shall be the Record Date), (x) the Rights will be evidenced
(subject to the provisions of Section 3(b) hereof) by the certificates for
Common Stock registered in the names of the holders thereof and not by separate
Right Certificates, and (y) the Rights will be transferable only in connection
with the transfer of Common Stock. As soon as practicable after the Distribution
Date, the Company will prepare and execute, the Rights Agent will countersign
and the Company will send or cause to be sent (and the Rights Agent will, if
requested, send) by first-class, insured, postage-prepaid mail, to each record
holder of Common Stock as of the Close of Business on the Distribution Date
(other than any Acquiring Person or any Associate or Affiliate of an Acquiring
Person), at the address of such holder shown on the records of the Company, a
Right Certificate, in substantially the form of Exhibit B hereto (a "Right
Certificate"), evidencing one Right (subject to adjustment as provided herein)
for each share of Common Stock so held. As of the Distribution Date, the Rights
will be evidenced solely by such Right Certificates.

            (b)     On the Record Date, or as soon as practicable thereafter,
the Company will send a copy of a Summary of Rights to Purchase Shares of
Preferred Stock, in substantially the form of Exhibit C hereto (the "Summary of
Rights"), by first-class, postage-prepaid mail, to each record holder of Common
Stock as of the Close of Business on the Record Date (other than any Acquiring
Person or any Associate or Affiliate of any Acquiring Person), at the address of
such holder shown on the records of the Company. With respect to certificates
for Common Stock outstanding as of the Record Date, until the Distribution Date,
the Rights will be evidenced by such certificates registered in the names of the
holders thereof together with the Summary of Rights. Until the Distribution Date
(or, if earlier, the Expiration Date), the surrender for transfer of any
certificate for Common Stock outstanding on the Record Date, with or without a
copy of the Summary of Rights, shall also constitute the transfer of the Rights
associated with the Common Stock represented thereby.

            (c)     Rights shall be issued in respect of all shares of Common
Stock issued or disposed of (including, without limitation, upon disposition of
Common Stock out of treasury stock or issuance or reissuance of Common Stock out
of authorized but unissued shares) after the Record Date but prior to the
earlier of the Distribution Date and the Expiration Date, or in certain
circumstances provided in Section 22 hereof, after the Distribution Date.
Certificates issued for Common Stock (including, without limitation, upon
transfer of outstanding Common Stock, disposition of Common Stock out of
treasury stock or issuance or reissuance of Common Stock out of authorized but
unissued shares) after the Record Date but prior to the earlier of the
Distribution Date and the Expiration Date shall have impressed on, printed on,
written on or otherwise affixed to them the following legend:

            This certificate also evidences and entitles the holder
            hereof to certain rights as set forth in a Rights Agreement
            between DuPont Photomasks, Inc. (the "Company") and
            EquiServe Trust Company, N.A., as Rights Agent, dated as of
            January 30, 2001 and as amended from time to time (the
            "Rights Agreement"), the terms of which are hereby
            incorporated herein by reference and a copy of which is on
            file at the principal executive offices of the Company.
            Under certain circumstances, as set forth in the Rights
            Agreement, such Rights will be evidenced by separate
            certificates and will no longer be evidenced by this
            certificate. The Company will mail to the holder of this
            certificate a copy of the Rights Agreement without charge
            after receipt of a written request therefor.

                                       7
<PAGE>

            Under certain circumstances, as set forth in the Rights
            -------------------------------------------------------
            Agreement, Rights owned by or transferred to any Person who
            -----------------------------------------------------------
            is or becomes an Acquiring Person (as defined in the Rights
            -----------------------------------------------------------
            Agreement) and certain transferees thereof will become null
            -----------------------------------------------------------
            and void and will no longer be transferable.
            -------------------------------------------

With respect to such certificates containing the foregoing legend, until the
Distribution Date the Rights associated with the Common Stock represented by
such certificates shall be evidenced by such certificates alone, and the
surrender for transfer of any such certificate, except as otherwise provided
herein, shall also constitute the transfer of the Rights associated with the
Common Stock represented thereby. In the event that the Company purchases or
otherwise acquires any Common Stock after the Record Date but prior to the
Distribution Date, any Rights associated with such Common Stock shall be deemed
canceled and retired so that the Company shall not be entitled to exercise any
Rights associated with the Common Stock which are no longer outstanding.

            Notwithstanding this paragraph (c), the omission of a legend shall
not affect the enforceability of any part of this Agreement or the rights of any
holder of the Rights.

            Section 4.  Form of Right Certificates. The Right Certificates (and
                        --------------------------
the forms of election to purchase shares and of assignment to be printed on the
reverse thereof) shall be substantially in the form set forth in Exhibit B
hereto and may have such marks of identification or designation and such
legends, summaries or endorsements printed thereon as the Company may deem
appropriate and as are not inconsistent with the provisions of this Agreement,
or as may be required to comply with any applicable law or with any rule or
regulation made pursuant thereto or with any rule or regulation of any stock
exchange or interdealer quotation system on which the Rights may from time to
time be listed or quoted, or to conform to usage. Subject to the provisions of
this Agreement, the Right Certificates shall entitle the holders thereof to
purchase such number of one one-thousandths of a share of Preferred Stock as
shall be set forth therein at the Purchase Price, but the number of such one
one-thousandths of a share of Preferred Stock and the Purchase Price shall be
subject to adjustment as provided herein.

            Section 5.  Countersignature and Registration.
                        ---------------------------------

            (a)     The Right Certificates shall be executed on behalf of the
Company by the President of the Company, either manually or by facsimile
signature, shall have affixed thereto the Company's seal or a facsimile thereof
and shall be attested by the Secretary of the Company, either manually or by
facsimile signature. The Right Certificates shall be manually countersigned by
the Rights Agent and shall not be valid for any purpose unless countersigned. In
case any officer of the Company who shall have signed any of the Right
Certificates shall cease to be such officer of the Company before
countersignature by the Rights Agent and issuance and delivery by the Company,
such Right Certificates, nevertheless, may be countersigned by the Rights Agent
and issued and delivered by the Company with the same force and effect as though
the Person who signed such Right Certificates had not ceased to be such officer
of the Company; and any Right Certificate may be signed on behalf of the Company
by any Person who, at the actual date of the execution of such Right
Certificate, shall be a proper officer of the Company to sign such Right
Certificate, although at the date of the execution of this Agreement any such
Person was not such an officer.

            (b)     Following the Distribution Date, the Rights Agent will keep
or cause to be kept, at an office or agency designated for such purpose, books
for registration and transfer of the Right Certificates issued hereunder. Such
books shall show the names and addresses of the respective holders of the Right
Certificates, the number of Rights evidenced on its face by each of the Right
Certificates and the date of each of the Right Certificates.

            Section 6.  Transfer, Split Up, Combination and Exchange of Right
                        -----------------------------------------------------
Certificates; Mutilated, Destroyed, Lost or Stolen Right Certificates.
---------------------------------------------------------------------

            (a)     Subject to the provisions of this Agreement, at any time
after the Distribution Date and prior to the Expiration Date, any Right
Certificate or Right Certificates may be transferred, split up,

                                       8
<PAGE>

combined or exchanged for another Right Certificate or Right Certificates,
entitling the registered holder to purchase a like number of one one-thousandths
of a share of Preferred Stock as the Right Certificate or Right Certificates
surrendered then entitled such holder to purchase. Any registered holder
desiring to transfer, split up, combine or exchange any Right Certificate or
Right Certificates shall make such request in writing delivered to the Rights
Agent, and shall surrender the Right Certificate or Right Certificates to be
transferred, split up, combined or exchanged at the office or agency of the
Rights Agent designated for such purpose. Thereupon the Rights Agent shall
countersign and deliver to the Person entitled thereto a Right Certificate or
Right Certificates, as the case may be, as so requested. The Company may require
payment of a sum sufficient to cover any tax or governmental charge that may be
imposed in connection with any transfer, split up, combination or exchange of
Right Certificates.

            (b)     Subject to the provisions of this Agreement, at any time
after the Distribution Date and prior to the Expiration Date, upon receipt by
the Company and the Rights Agent of evidence reasonably satisfactory to them of
the loss, theft, destruction or mutilation of a Right Certificate, and, in case
of loss, theft or destruction, of indemnity or security reasonably satisfactory
to them, and, at the Company's request, reimbursement to the Company and the
Rights Agent of all reasonable expenses incidental thereto, and upon surrender
to the Rights Agent and cancellation of the Right Certificate if mutilated, the
Company will make and deliver a new Right Certificate of like tenor to the
Rights Agent for delivery to the registered holder in lieu of the Right
Certificate so lost, stolen, destroyed or mutilated.

            Section 7.  Exercise of Rights, Purchase Price; Expiration Date of
                        ------------------------------------------------------
Rights.
------

            (a)     Except as otherwise provided herein, the Rights shall become
exercisable on the Distribution Date, and thereafter the registered holder of
any Right Certificate may, subject to Section 11(a)(ii) hereof and except as
otherwise provided herein, exercise the Rights evidenced thereby in whole or in
part upon surrender of the Right Certificate, with the form of election to
purchase on the reverse side thereof duly executed, to the Rights Agent at the
office or agency of the Rights Agent designated for such purpose, together with
payment of the aggregate Purchase Price with respect to the total number of one
one-thousandths of a share of Preferred Stock (or other securities, cash or
other assets, as the case may be) as to which the Rights are exercised, at any
time which is both after the Distribution Date and prior to the time (the
"Expiration Date") that is the earliest of (i) the Close of Business on January
30, 2011 (the "Final Expiration Date"), (ii) the time at which the Rights are
redeemed as provided in Section 23 hereof (the "Redemption Date") or (iii) the
time at which such Rights are exchanged as provided in Section 24 hereof.

            (b)     The Purchase Price shall be initially $400.00 for each one
one-thousandth of a share of Preferred Stock purchasable upon the exercise of a
Right. The Purchase Price and the number of one one-thousandths of a share of
Preferred Stock or other securities or property to be acquired upon exercise of
a Right shall be subject to adjustment from time to time as provided in Sections
11 and 13 hereof and shall be payable in lawful money of the United States of
America in accordance with paragraph (c) of this Section 7.

            (c)     Except as otherwise provided herein, upon receipt of a Right
Certificate representing exercisable Rights, with the form of election to
purchase duly executed, accompanied by payment of the aggregate Purchase Price
for the shares of Preferred Stock to be purchased and an amount equal to any
applicable transfer tax required to be paid by the holder of such Right
Certificate in accordance with Section 9 hereof, in cash or by certified check,
cashier's check or money order payable to the order of the Company, the Rights
Agent shall thereupon promptly (i) (A) requisition from any transfer agent of
the Preferred Stock, or make available if the Rights Agent is the transfer agent
for the Preferred Stock, certificates for the number of shares of Preferred
Stock to be purchased, and the Company hereby irrevocably authorizes its
transfer agent to comply with all such requests, or (B) requisition from a
depositary agent appointed by the Company depositary receipts representing
interests in such number of one one-thousandths of a share of Preferred Stock as
are to be purchased (in which case certificates for the Preferred Stock
represented by such receipts shall be deposited by the transfer agent with the
depositary agent), and the Company hereby directs any such depositary agent to
comply with such request, (ii) when appropriate, requisition from the Company
the amount of cash to be paid in lieu of issuance of fractional shares in
accordance with Section 14 hereof, (iii) promptly after receipt of such
certificates or depositary receipts, cause the same to be delivered to or upon
the

                                       9
<PAGE>

order of the registered holder of such Right Certificate, registered in such
name or names as may be designated by such holder and (iv) when appropriate,
after receipt, promptly deliver such cash to or upon the order of the registered
holder of such Right Certificate.

            (d)     Except as otherwise provided herein, in case the registered
holder of any Right Certificate shall exercise less than all of the Rights
evidenced thereby, a new Right Certificate evidencing Rights equivalent to the
exercisable Rights remaining unexercised shall be issued by the Rights Agent to
the registered holder of such Right Certificate or to his duly authorized
assigns, subject to the provisions of Section 14 hereof.

            (e)     Notwithstanding anything in this Agreement to the contrary,
neither the Rights Agent nor the Company shall be obligated to undertake any
action with respect to a registered holder of Rights upon the occurrence of any
purported transfer or exercise of Rights pursuant to Section 6 hereof or this
Section 7 unless such registered holder shall have (i) completed and signed the
certificate contained in the form of assignment or form of election to purchase
set forth on the reverse side of the Rights Certificate surrendered for such
transfer or exercise and (ii) provided such additional evidence of the identity
of the Beneficial Owner (or former Beneficial Owner) thereof as the Company
shall reasonably request.

            Section 8.  Cancellation and Destruction of Right Certificates. All
                        --------------------------------------------------
Right Certificates surrendered for the purpose of exercise, transfer, split up,
combination or exchange shall, if surrendered to the Company or to any of its
agents, be delivered to the Rights Agent for cancellation or in canceled form,
or, if surrendered to the Rights Agent, shall be canceled by it, and no Right
Certificates shall be issued in lieu thereof except as expressly permitted by
any of the provisions of this Agreement. The Company shall deliver to the Rights
Agent for cancellation and retirement, and the Rights Agent shall so cancel and
retire, any other Right Certificate purchased or acquired by the Company
otherwise than upon the exercise thereof. The Rights Agent shall deliver all
canceled Right Certificates to the Company, or shall, at the written request of
the Company, destroy such canceled Right Certificates, and in such case shall
deliver a certificate of destruction thereof to the Company.

            Section 9.  Availability of Shares of Preferred Stock.
                        -----------------------------------------

            (a)     The Company covenants and agrees that it will cause to be
reserved and kept available out of its authorized and unissued shares of
Preferred Stock or any shares of Preferred Stock held in its treasury, the
number of shares of Preferred Stock that will be sufficient to permit the
exercise in full of all outstanding Rights.

            (b)     So long as the shares of Preferred Stock issuable upon the
exercise of Rights may be listed or admitted to trading on any national
securities exchange, or quoted on NASDAQ, the Company shall use its best efforts
to cause, from and after such time as the Rights become exercisable, all shares
reserved for such issuance to be listed or admitted to trading on such exchange,
or quoted on NASDAQ, upon official notice of issuance upon such exercise.

            (c)     From and after such time as the Rights become exercisable,
the Company shall use its best efforts, if then necessary to permit the issuance
of shares of Preferred Stock upon the exercise of Rights, to register and
qualify such shares of Preferred Stock under the Securities Act and any
applicable state securities or "Blue Sky" laws (to the extent exemptions
therefrom are not available), cause such registration statement and
qualifications to become effective as soon as possible after such filing and
keep such registration and qualifications effective (with a prospectus at all
times meeting the requirements of the Securities Act) until the earlier of the
date as of which the Rights are no longer exercisable for such securities and
the Expiration Date. The Company may temporarily suspend, for a period of time
not to exceed 90 days, the exercisability of the Rights in order to prepare and
file a registration statement under the Securities Act and permit it to become
effective. Upon any such suspension, the Company shall issue a public
announcement stating that the exercisability of the Rights has been temporarily
suspended, as well as a public announcement at such time as the suspension is no
longer in effect. Notwithstanding any provision of this Agreement to the
contrary, the Rights shall not be exercisable in any jurisdiction unless the
requisite

                                      10
<PAGE>

qualification in such jurisdiction shall have been obtained and until
a registration statement under the Securities Act shall have been declared
effective, unless an exemption therefrom is available.

            (d) The Company covenants and agrees that it will take all such
action as may be necessary to ensure that all shares of Preferred Stock
delivered upon exercise of Rights shall, at the time of delivery of the
certificates therefor (subject to payment of the Purchase Price), be duly and
validly authorized and issued and fully paid and nonassessable shares.

            (e) The Company further covenants and agrees that it will pay when
due and payable any and all federal and state transfer taxes and charges which
may be payable in respect of the issuance or delivery of the Right Certificates
or of any shares of Preferred Stock upon the exercise of Rights. The Company
shall not, however, be required to pay any transfer tax which may be payable in
respect of any transfer or delivery of Right Certificates to a Person other
than, or the issuance or delivery of certificates or depositary receipts for the
Preferred Stock in a name other than that of, the registered holder of the Right
Certificate evidencing Rights surrendered for exercise or to issue or deliver
any certificates or depositary receipts for Preferred Stock upon the exercise of
any Rights until any such tax shall have been paid (any such tax being payable
by that holder of such Right Certificate at the time of surrender) or until it
has been established to the Company's reasonable satisfaction that no such tax
is due.

            Section 10. Preferred Stock Record Date. Each Person in whose name
                        ---------------------------
any certificate for Preferred Stock is issued upon the exercise of Rights shall
for all purposes be deemed to have become the holder of record of the shares of
Preferred Stock represented thereby on, and such certificate shall be dated, the
date upon which the Right Certificate evidencing such Rights was duly
surrendered and payment of the Purchase Price (and any applicable transfer
taxes) was made; provided, however, that if the date of such surrender and
                 --------  -------
payment is a date upon which the Preferred Stock transfer books of the Company
are closed, such Person shall be deemed to have become the record holder of such
shares on, and such certificate shall be dated, the next succeeding Business Day
on which the Preferred Stock transfer books of the Company are open. Prior to
the exercise of the Rights evidenced thereby, the holder of a Right Certificate
shall not be entitled to any rights of a holder of Preferred Stock for which the
Rights shall be exercisable, including, without limitation, the right to vote or
to receive dividends or other distributions, and shall not be entitled to
receive any notice of any proceedings of the Company, except as provided herein.

            Section 11. Adjustment of Purchase Price, Number and Kind of Shares
                        -------------------------------------------------------
and Number of Rights. The Purchase Price, the number of shares of Preferred
--------------------
Stock or other securities or property purchasable upon exercise of each Right
and the number of Rights outstanding are subject to adjustment from time to time
as provided in this Section 11.

            (a)(i) In the event the Company shall at any time after the date of
this Agreement (A) declare and pay a dividend on the Preferred Stock payable in
shares of Preferred Stock, (B) subdivide the outstanding Preferred Stock, (C)
combine the outstanding Preferred Stock into a smaller number of shares of
Preferred Stock or (D) issue any shares of its capital stock in a
reclassification of the Preferred Stock (including any such reclassification in
connection with a consolidation or merger in which the Company is the continuing
or surviving corporation), except as otherwise provided in this Section 11(a),
the number and kind of shares of capital stock issuable upon exercise of a Right
as of the record date for such dividend or the effective date of such
subdivision, combination or reclassification shall be proportionately adjusted
so that the holder of any Right exercised after such time shall be entitled to
receive the aggregate number and kind of shares of capital stock which, if such
Right had been exercised immediately prior to such date and at a time when the
Preferred Stock transfer books of the Company were open, the holder would have
owned upon such exercise and been entitled to receive by virtue of such
dividend, subdivision, combination or reclassification.

            (ii) Subject to Section 24 of this Agreement, in the event any
Person becomes an Acquiring Person (the first occurrence of such event being
referred to hereinafter as the "Flip-In Event"), then (A) the Purchase Price
shall be adjusted to be the Purchase Price in effect immediately prior to the
Flip-In Event multiplied by the number of one one-thousandths of a share of
Preferred Stock for which a Right was exercisable immediately prior to such
Flip-In Event, whether or not such Right was then exercisable, and

                                      11
<PAGE>

(B) each holder of a Right, except as otherwise provided in this Section
11(a)(ii) and Section 11(a)(iii) hereof, shall thereafter have the right to
receive, upon exercise thereof at a price equal to the Purchase Price (as so
adjusted), in accordance with the terms of this Agreement and in lieu of shares
of Preferred Stock, such number of shares of Common Stock as shall equal the
result obtained by dividing the Purchase Price (as so adjusted) by 50% of the
current per share market price of the Common Stock (determined pursuant to
Section 11(d) hereof) on the date of such Flip-In Event; provided, however, that
                                                         --------  -------
the Purchase Price (as so adjusted) and the number of shares of Common Stock so
receivable upon exercise of a Right shall, following the Flip-In Event, be
subject to further adjustment as appropriate in accordance with Section 11(f)
hereof. Notwithstanding anything in this Agreement to the contrary, however,
from and after the Flip-In Event, any Rights that are beneficially owned by (x)
any Acquiring Person (or any Affiliate or Associate of any Acquiring Person),
(y) a transferee of any Acquiring Person (or any such Affiliate or Associate)
who becomes a transferee after the Flip-In Event or (z) a transferee of any
Acquiring Person (or any such Affiliate or Associate) who became a transferee
prior to or concurrently with the Flip-In Event pursuant to either (I) a
transfer from the Acquiring Person to holders of its equity securities or to any
Person with whom it has any continuing agreement, arrangement or understanding
regarding the transferred Rights or (II) a transfer which the Board of Directors
has determined is part of a plan, arrangement or understanding which has the
purpose or effect of avoiding the provisions of this paragraph, and subsequent
transferees of such Persons, shall be void without any further action and any
holder of such Rights shall thereafter have no rights whatsoever with respect to
such Rights under any provision of this Agreement. The Company shall use all
reasonable efforts to ensure that the provisions of this Section 11(a)(ii) are
complied with, but shall have no liability to any holder of Right Certificates
or other Person as a result of its failure to make any determinations with
respect to an Acquiring Person or its Affiliates, Associates or transferees
hereunder. From and after the Flip-In Event, no Right Certificate shall be
issued pursuant to Section 3 or Section 6 hereof that represents Rights that are
or have become void pursuant to the provisions of this paragraph, and any Right
Certificate delivered to the Rights Agent that represents Rights that are or
have become void pursuant to the provisions of this paragraph shall be canceled.
From and after the occurrence of an event specified in Section 13(a) hereof, any
Rights that theretofore have not been exercised pursuant to this Section
11(a)(ii) shall thereafter be exercisable only in accordance with Section 13 and
not pursuant to this Section 11(a)(ii).

            (iii)   The Company may at its option substitute for a share of
Common Stock issuable upon the exercise of Rights in accordance with the
foregoing subparagraph (ii) a number of shares of Preferred Stock or fraction
thereof such that the current per share market price of one share of Preferred
Stock multiplied by such number or fraction is equal to the current per share
market price of one share of Common Stock. In the event that there shall not be
sufficient shares of Common Stock issued but not outstanding or authorized but
unissued to permit the exercise in full of the Rights in accordance with the
foregoing subparagraph (ii), the Board of Directors shall, with respect to such
deficiency, to the extent permitted by applicable law and any material
agreements then in effect to which the Company is a party, (A) determine the
excess (such excess, the "Spread") of (1) the value of the shares of Common
Stock issuable upon the exercise of a Right in accordance with the foregoing
subparagraph (ii) (the "Current Value") over (2) the Purchase Price (as adjusted
in accordance with the foregoing subparagraph (ii)), and (B) with respect to
each Right (other than Rights which have become void pursuant to the foregoing
subparagraph (ii)), make adequate provision to substitute for the shares of
Common Stock issuable in accordance with the foregoing subparagraph (ii) upon
exercise of the Right and payment of the Purchase Price (as adjusted in
accordance therewith), (1) cash, (2) a reduction in such Purchase Price, (3)
shares of Preferred Stock or other equity securities of the Company (including,
without limitation, shares or fractions of shares of preferred stock which, by
virtue of having dividend, voting and liquidation rights substantially
comparable to those of the shares of Common Stock, are deemed in good faith by
the Board of Directors to have substantially the same value as the shares of
Common Stock (such shares of Preferred Stock and shares or fractions of shares
of preferred stock are hereinafter referred to as "Common Stock Equivalents")),
(4) debt securities of the Company, (5) other assets, or (6) any combination of
the foregoing, having a value which, when added to the value of the shares of
Common Stock issued upon exercise of such Right, shall have an aggregate value
equal to the Current Value (less the amount of any reduction in such Purchase
Price), where such aggregate value has been determined by the Board of Directors
upon the advice of a nationally recognized investment banking firm selected in
good faith by the Board of Directors; provided, however, that if the Company
                                      --------  -------
shall not make adequate provision to deliver value pursuant to clause (B) above
within thirty (30) days following

                                      12
<PAGE>

the Flip-In Event (the date of the Flip-In Event being the "Section 11(a)(ii)
Trigger Date"), then the Company shall be obligated to deliver, to the extent
permitted by applicable law and any material agreements then in effect to which
the Company is a party, upon the surrender for exercise of a Right and without
requiring payment of such Purchase Price, shares of Common Stock (to the extent
available), and then, if necessary, such number or fractions of shares of
Preferred Stock (to the extent available) and then, if necessary, cash, which
shares and/or cash have an aggregate value equal to the Spread. If, upon the
occurrence of the Flip-In Event, the Board of Directors shall determine in good
faith that it is likely that sufficient additional shares of Common Stock could
be authorized for issuance upon exercise in full of the Rights, then, if the
Board of Directors so elects, the thirty (30) day period set forth above may be
extended to the extent necessary, but not more than ninety (90) days after the
Section 11(a)(ii) Trigger Date, in order that the Company may seek stockholder
approval for the authorization of such additional shares (such thirty (30) day
period, as it may be extended, is herein called the "Substitution Period"). To
the extent that the Company determines that some action need be taken pursuant
to the second and/or third sentence of this Section 11(a)(iii), the Company (x)
shall provide, subject to Section 11(a)(ii) hereof and the last sentence of this
Section 11(a)(iii) hereof, that such action shall apply uniformly to all
outstanding Rights and (y) may suspend the exercisability of the Rights until
the expiration of the Substitution Period in order to seek any authorization of
additional shares and/or to decide the appropriate form of distribution to be
made pursuant to such second sentence and to determine the value thereof. In the
event of any such suspension, the Company shall issue a public announcement
stating that the exercisability of the Rights has been temporarily suspended, as
well as a public announcement at such time as the suspension is no longer in
effect. For purposes of this Section 11(a)(iii), the value of the shares of
Common Stock shall be the current per share market price (as determined pursuant
to Section 11(d)(i)) on the Section 11(a)(ii) Trigger Date and the per share or
fractional value of any "Common Stock Equivalent" shall be deemed to equal the
current per share market price of the Common Stock. The Board of Directors of
the Company may, but shall not be required to, establish procedures to allocate
the right to receive shares of Common Stock upon the exercise of the Rights
among holders of Rights pursuant to this Section 11(a)(iii).

            (b) In case the Company shall fix a record date for the issuance of
rights, options or warrants to all holders of Preferred Stock entitling them
(for a period expiring within 45 calendar days after such record date) to
subscribe for or purchase Preferred Stock (or shares having the same rights,
privileges and preferences as the Preferred Stock ("Equivalent Preferred
Shares")) or securities convertible into Preferred Stock or Equivalent Preferred
Shares at a price per share of Preferred Stock or Equivalent Preferred Shares
(or having a conversion price per share, if a security convertible into shares
of Preferred Stock or Equivalent Preferred Shares) less than the then current
per share market price of the Preferred Stock (determined pursuant to Section
11(d) hereof) on such record date, the Purchase Price to be in effect after such
record date shall be determined by multiplying the Purchase Price in effect
immediately prior to such record date by a fraction, the numerator of which
shall be the number of shares of Preferred Stock and Equivalent Preferred Shares
outstanding on such record date plus the number of shares of Preferred Stock and
Equivalent Preferred Shares which the aggregate offering price of the total
number of shares of Preferred Stock and/or Equivalent Preferred Shares so to be
offered (and/or the aggregate initial conversion price of the convertible
securities so to be offered) would purchase at such current market price, and
the denominator of which shall be the number of shares of Preferred Stock and
Equivalent Preferred Shares outstanding on such record date plus the number of
additional shares of Preferred Stock and/or Equivalent Preferred Shares to be
offered for subscription or purchase (or into which the convertible securities
so to be offered are initially convertible); provided, however, that in no event
                                             --------  -------
shall the consideration to be paid upon the exercise of one Right be less than
the aggregate par value of the shares of capital stock of the Company issuable
upon exercise of one Right. In case such subscription price may be paid in a
consideration part or all of which shall be in a form other than cash, the value
of such consideration shall be as determined in good faith by the Board of
Directors of the Company, whose determination shall be described in a statement
filed with the Rights Agent. Shares of Preferred Stock and Equivalent Preferred
Shares owned by or held for the account of the Company shall not be deemed
outstanding for the purpose of any such computation. Such adjustment shall be
made successively whenever such a record date is fixed; and in the event that
such rights, options or warrants are not so issued, the Purchase Price shall be
adjusted to be the Purchase Price which would then be in effect if such record
date had not been fixed.

                                      13
<PAGE>

            (c)     In case the Company shall fix a record date for the making
of a distribution to all holders of the Preferred Stock (including any such
distribution made in connection with a consolidation or merger in which the
Company is the continuing or surviving corporation) of evidences of indebtedness
or assets (other than a regular quarterly cash dividend or a dividend payable in
Preferred Stock) or subscription rights or warrants (excluding those referred to
in Section 11(b) hereof), the Purchase Price to be in effect after such record
date shall be determined by multiplying the Purchase Price in effect immediately
prior to such record date by a fraction, the numerator of which shall be the
then current per share market price of the Preferred Stock (determined pursuant
to Section 11(d) hereof) on such record date, less the fair market value (as
determined in good faith by the Board of Directors of the Company whose
determination shall be described in a statement filed with the Rights Agent) of
the portion of the assets or evidences of indebtedness so to be distributed or
of such subscription rights or warrants applicable to one share of Preferred
Stock, and the denominator of which shall be such current per share market price
(determined pursuant to Section 11(d) hereof) of the Preferred Stock; provided,
                                                                      --------
however, that in no event shall the consideration to be paid upon the exercise
-------
of one Right be less than the aggregate par value of the shares of capital stock
of the Company to be issued upon exercise of one Right. Such adjustments shall
be made successively whenever such a record date is fixed; and in the event that
such distribution is not so made, the Purchase Price shall again be adjusted to
be the Purchase Price which would then be in effect if such record date had not
been fixed.

            (d)(i)  Except as otherwise provided herein, for the purpose of any
computation hereunder, the "current per share market price" of any security (a
"Security" for the purpose of this Section 11(d)(i)) on any date shall be deemed
to be the average of the daily closing prices per share of such Security for the
30 consecutive Trading Days (as such term is hereinafter defined) immediately
prior to such date; provided, however, that in the event that the current per
                    --------  -------
share market price of the Security is determined during a period following the
announcement by the issuer of such Security of (A) a dividend or distribution on
such Security payable in shares of such Security or securities convertible into
such shares, or (B) any subdivision, combination or reclassification of such
Security, and prior to the expiration of 30 Trading Days after the ex-dividend
date for such dividend or distribution, or the record date for such subdivision,
combination or reclassification, then, and in each such case, the current per
share market price shall be appropriately adjusted to reflect the current market
price per share equivalent of such Security. The closing price for each day
shall be the last sale price, regular way, or, in case no such sale takes place
on such day, the average of the closing bid and asked prices, regular way, in
either case as reported by the principal consolidated transaction reporting
system with respect to securities listed or admitted to trading on the New York
Stock Exchange or, if the Security is not listed or admitted to trading on the
New York Stock Exchange, as reported in the principal consolidated transaction
reporting system with respect to securities listed on the principal national
securities exchange on which the Security is listed or admitted to trading or,
if the Security is not listed or admitted to trading on any national securities
exchange, the last quoted price or, if not so quoted, the average of the high
bid and low asked prices in the over-the-counter market, as reported by NASDAQ
or such other system then in use, or, if on any such date the Security is not
quoted by any such organization, the average of the closing bid and asked prices
as furnished by a professional market maker making a market in the Security
selected by the Board of Directors of the Company. The term "Trading Day" shall
mean a day on which the principal national securities exchange on which the
Security is listed or admitted to trading is open for the transaction of
business or, if the Security is not listed or admitted to trading on any
national securities exchange, a Business Day.

            (ii)    For the purpose of any computation hereunder, if the
Preferred Stock is publicly traded, the "current per share market price" of the
Preferred Stock shall be determined in accordance with the method set forth in
Section 11(d)(i). If the Preferred Stock is not publicly traded but the Common
Stock is publicly traded, the "current per share market price" of the Preferred
Stock shall be conclusively deemed to be the current per share market price of
the Common Stock as determined pursuant to Section 11(d)(i) multiplied by the
then applicable Adjustment Number (as defined in and determined in accordance
with the Certificate of Designation for the Preferred Stock). If neither the
Common Stock nor the Preferred Stock is publicly traded, "current per share
market price" shall mean the fair value per share as determined in good faith by
the Board of Directors of the Company, whose determination shall be described in
a statement filed with the Rights Agent.

                                      14
<PAGE>

            (e)     No adjustment in the Purchase Price shall be required unless
such adjustment would require an increase or decrease of at least 1% in the
Purchase Price; provided, however, that any adjustments which by reason of this
Section 11(e) are not required to be made shall be carried forward and taken
into account in any subsequent adjustment. All calculations under this Section
11 shall be made to the nearest cent or to the nearest one hundred-thousandth of
a share of Preferred Stock or one-hundredth of a share of Common Stock or other
share or security as the case may be. Notwithstanding the first sentence of this
Section 11(e), any adjustment required by this Section 11 shall be made no later
than the earlier of (i) three years from the date of the transaction which
requires such adjustment or (ii) the Expiration Date.

            (f)     If as a result of an adjustment made pursuant to Section
11(a) hereof, the holder of any Right thereafter exercised shall become entitled
to receive any shares of capital stock of the Company other than the Preferred
Stock, thereafter the Purchase Price and the number of such other shares so
receivable upon exercise of a Right shall be subject to adjustment from time to
time in a manner and on terms as nearly equivalent as practicable to the
provisions with respect to the Preferred Stock contained in Sections 11(a),
11(b), 11(c), 11(e), 11(h), 11(i) and 11(m) hereof, as applicable, and the
provisions of Sections 7, 9, 10, 13 and 14 hereof with respect to the Preferred
Stock shall apply on like terms to any such other shares.

            (g)     All Rights originally issued by the Company subsequent to
any adjustment made to the Purchase Price hereunder shall evidence the right to
purchase, at the adjusted Purchase Price, the number of one one-thousandths of a
share of Preferred Stock purchasable from time to time hereunder upon exercise
of the Rights, all subject to further adjustment as provided herein.

            (h)     Unless the Company shall have exercised its election as
provided in Section 11(i), upon each adjustment of the Purchase Price as a
result of the calculations made in Sections 11(b) and 11(c), each Right
outstanding immediately prior to the making of such adjustment shall thereafter
evidence the right to purchase, at the adjusted Purchase Price, that number of
one one-thousandths of a share of Preferred Stock (calculated to the nearest one
hundred-thousandth of a share of Preferred Stock) obtained by (i) multiplying
(x) the number of one one-thousandths of a share purchasable upon the exercise
of a Right immediately prior to such adjustment by (y) the Purchase Price in
effect immediately prior to such adjustment and (ii) dividing the product so
obtained by the Purchase Price in effect immediately after such adjustment.

            (i)     The Company may elect on or after the date of any adjustment
of the Purchase Price pursuant to Sections 11(b) or 11(c) hereof to adjust the
number of Rights, in substitution for any adjustment in the number of one one-
thousandths of a share of Preferred Stock purchasable upon the exercise of a
Right. Each of the Rights outstanding after such adjustment of the number of
Rights shall be exercisable for the number of one one-thousandths of a share of
Preferred Stock for which a Right was exercisable immediately prior to such
adjustment. Each Right held of record prior to such adjustment of the number of
Rights shall become that number of Rights (calculated to the nearest one-
hundredth) obtained by dividing the Purchase Price in effect immediately prior
to adjustment of the Purchase Price by the Purchase Price in effect immediately
after adjustment of the Purchase Price. The Company shall make a public
announcement of its election to adjust the number of Rights, indicating the
record date for the adjustment, and, if known at the time, the amount of the
adjustment to be made. Such record date may be the date on which the Purchase
Price is adjusted or any day thereafter, but, if the Right Certificates have
been issued, shall be at least 10 days later than the date of the public
announcement. If Right Certificates have been issued, upon each adjustment of
the number of Rights pursuant to this Section 11(i), the Company may, as
promptly as practicable, cause to be distributed to holders of record of Right
Certificates on such record date Right Certificates evidencing, subject to
Section 14 hereof, the additional Rights to which such holders shall be entitled
as a result of such adjustment, or, at the option of the Company, shall cause to
be distributed to such holders of record in substitution and replacement for the
Right Certificates held by such holders prior to the date of adjustment, and
upon surrender thereof, if required by the Company, new Right Certificates
evidencing all the Rights to which such holders shall be entitled after such
adjustment. Right Certificates so to be distributed shall be issued, executed
and countersigned in the manner provided for herein and shall be registered in
the names of the holders of record of Right Certificates on the record date
specified in the public announcement.

                                      15
<PAGE>

            (j)     Irrespective of any adjustment or change in the Purchase
Price or the number of one one-thousandths of a share of Preferred Stock
issuable upon the exercise of a Right, the Right Certificates theretofore and
thereafter issued may continue to express the Purchase Price and the number of
one one-thousandths of a share of Preferred Stock which were expressed in the
initial Right Certificates issued hereunder.

            (k)     Before taking any action that would cause an adjustment
reducing the Purchase Price below the then par value, if any, of the fraction of
Preferred Stock or other shares of capital stock issuable upon exercise of a
Right, the Company shall take any corporate action which may, in the opinion of
its counsel, be necessary in order that the Company may validly and legally
issue fully paid and nonassessable shares of Preferred Stock or other such
shares at such adjusted Purchase Price.

            (l)     In any case in which this Section 11 shall require that an
adjustment in the Purchase Price be made effective as of a record date for a
specified event, the Company may elect to defer until the occurrence of such
event issuing to the holder of any Right exercised after such record date the
Preferred Stock and other capital stock or securities of the Company, if any,
issuable upon such exercise over and above the Preferred Stock and other capital
stock or securities of the Company, if any, issuable upon such exercise on the
basis of the Purchase Price in effect prior to such adjustment; provided,
however, that the Company shall deliver to such holder a due bill or other
appropriate instrument evidencing such holder's right to receive such additional
shares upon the occurrence of the event requiring such adjustment.

            (m)     Anything in this Section 11 to the contrary notwithstanding,
the Company shall be entitled to make such adjustments in the Purchase Price, in
addition to those adjustments expressly required by this Section 11, as and to
the extent that it in its sole discretion shall determine to be advisable in
order that any consolidation or subdivision of the Preferred Stock, issuance
wholly for cash of any shares of Preferred Stock at less than the current market
price, issuance wholly for cash of Preferred Stock or securities which by their
terms are convertible into or exchangeable for Preferred Stock, dividends on
Preferred Stock payable in shares of Preferred Stock or issuance of rights,
options or warrants referred to hereinabove in Section 11(b), hereafter made by
the Company to holders of its Preferred Stock shall not be taxable to such
stockholders.

            (n)     Anything in this Agreement to the contrary notwithstanding,
in the event that at any time after the date of this Agreement and prior to the
Distribution Date, the Company shall (i) declare and pay any dividend on the
Common Stock payable in Common Stock or (ii) effect a subdivision, combination
or consolidation of the Common Stock (by reclassification or otherwise than by
payment of a dividend payable in Common Stock) into a greater or lesser number
of shares of Common Stock, then, in each such case, the number of Rights
associated with each share of Common Stock then outstanding, or issued or
delivered thereafter, shall be proportionately adjusted so that the number of
Rights thereafter associated with each share of Common Stock following any such
event shall equal the result obtained by multiplying the number of Rights
associated with each share of Common Stock immediately prior to such event by a
fraction the numerator of which shall be the total number of shares of Common
Stock outstanding immediately prior to the occurrence of the event and the
denominator of which shall be the total number of shares of Common Stock
outstanding immediately following the occurrence of such event.

            (o)     The Company agrees that, after the earlier of the
Distribution Date or the Stock Acquisition Date, it will not, except as
permitted by Sections 23, 24 or 27 hereof, take (or permit any Subsidiary to
take) any action if at the time such action is taken it is reasonably
foreseeable that such action will diminish substantially or eliminate the
benefits intended to be afforded by the Rights.

            Section 12. Certificate of Adjusted Purchase Price or Number of
                        ---------------------------------------------------
Shares. Whenever an adjustment is made as provided in Section 11 or 13 hereof,
------
the Company shall promptly (a) prepare a certificate setting forth such
adjustment, and a brief statement of the facts accounting for such adjustment,
(b) file with the Rights Agent and with each transfer agent for the Common Stock
and the Preferred Stock a copy of such certificate and (c) mail a brief summary
thereof to each holder of a Right Certificate in accordance with Section 25
hereof (if so required under Section 25 hereof). The Rights Agent shall be fully
protected in

                                      16
<PAGE>

relying on any such certificate and on any adjustment therein contained and
shall not be deemed to have knowledge of any such adjustment unless and until it
shall have received such certificate.

            Section 13. Consolidation, Merger or Sale or Transfer of Assets or
                        ------------------------------------------------------
Earning Power.
-------------

            (a)     In the event, directly or indirectly, at any time after the
Flip-In Event (i) the Company shall consolidate with or shall merge into any
other Person, (ii) any Person shall merge with and into the Company and the
Company shall be the continuing or surviving corporation of such merger and, in
connection with such merger, all or part of the Common Stock shall be changed
into or exchanged for stock or other securities of any other Person (or of the
Company) or cash or any other property, or (iii) the Company shall sell or
otherwise transfer (or one or more of its Subsidiaries shall sell or otherwise
transfer), in one or more transactions, assets or earning power aggregating 50%
or more of the assets or earning power of the Company and its Subsidiaries
(taken as a whole) to any other Person (other than the Company or one or more
wholly-owned Subsidiaries of the Company), then upon the first occurrence of
such event, proper provision shall be made so that: (A) each holder of a Right
(other than Rights which have become void pursuant to Section 11(a)(ii) hereof)
shall thereafter have the right to receive, upon the exercise thereof at the
Purchase Price (as theretofore adjusted in accordance with Section 11(a)(ii)
hereof), in accordance with the terms of this Agreement and in lieu of shares of
Preferred Stock or Common Stock of the Company, such number of validly
authorized and issued, fully paid, non-assessable and freely tradeable shares of
Common Stock of the Principal Party (as such term is hereinafter defined), not
subject to any liens, encumbrances, rights of first refusal or other adverse
claims, as shall equal the result obtained by dividing the Purchase Price (as
theretofore adjusted in accordance with Section 11(a)(ii) hereof) by 50% of the
current per share market price of the Common Stock of such Principal Party
(determined pursuant to Section 11(d) hereof) on the date of consummation of
such consolidation, merger, sale or transfer; provided, however, that the
                                              --------  -------
Purchase Price (as theretofore adjusted in accordance with Section 11(a)(ii)
hereof) and the number of shares of Common Stock of such Principal Party so
receivable upon exercise of a Right shall be subject to further adjustment as
appropriate in accordance with Section 11(f) hereof to reflect any events
occurring in respect of the Common Stock of such Principal Party after the
occurrence of such consolidation, merger, sale or transfer; (B) such Principal
Party shall thereafter be liable for, and shall assume, by virtue of such
consolidation, merger, sale or transfer, all the obligations and duties of the
Company pursuant to this Agreement; (C) the term "Company" shall thereafter be
deemed to refer to such Principal Party; and (D) such Principal Party shall take
such steps (including, but not limited to, the reservation of a sufficient
number of its shares of Common Stock in accordance with Section 9 hereof) in
connection with such consummation of any such transaction as may be necessary to
assure that the provisions hereof shall thereafter be applicable, as nearly as
reasonably may be, in relation to the shares of its Common Stock thereafter
deliverable upon the exercise of the Rights; provided that, upon the subsequent
occurrence of any consolidation, merger, sale or transfer of assets or other
extraordinary transaction in respect of such Principal Party, each holder of a
Right shall thereupon be entitled to receive, upon exercise of a Right and
payment of the Purchase Price as provided in this Section 13(a), such cash,
shares, rights, warrants and other property which such holder would have been
entitled to receive had such holder, at the time of such transaction, owned the
Common Stock of the Principal Party receivable upon the exercise of a Right
pursuant to this Section 13(a), and such Principal Party shall take such steps
(including, but not limited to, reservation of shares of stock) as may be
necessary to permit the subsequent exercise of the Rights in accordance with the
terms hereof for such cash, shares, rights, warrants and other property.

            (b)    "Principal Party" shall mean:

                   (i) in the case of any transaction described in (i) or (ii)
of the first sentence of Section 13(a) hereof: (A) the Person that is the issuer
of the securities into which the shares of Common Stock are converted in such
merger or consolidation, or, if there is more than one such issuer, the issuer
the shares of Common Stock of which have the greatest aggregate market value of
shares outstanding, or (B) if no securities are so issued, (x) the Person that
is the other party to the merger, if such Person survives said merger, or, if
there is more than one such Person, the Person the shares of Common Stock of
which have the greatest aggregate market value of shares outstanding or (y) if
the Person that is the other party to the merger

                                      17
<PAGE>

does not survive the merger, the Person that does survive the merger (including
the Company if it survives) or (z) the Person resulting from the consolidation;
and

                   (ii)  in the case of any transaction described in (iii) of
the first sentence of Section 13(a) hereof, the Person that is the party
receiving the greatest portion of the assets or earning power transferred
pursuant to such transaction or transactions, or, if each Person that is a party
to such transaction or transactions receives the same portion of the assets or
earning power so transferred or if the Person receiving the greatest portion of
the assets or earning power cannot be determined, whichever of such Persons is
the issuer of Common Stock having the greatest aggregate market value of shares
outstanding;

provided, however, that in any such case described in the foregoing clause
(b)(i) or (b)(ii), if the Common Stock of such Person is not at such time or has
not been continuously over the preceding 12-month period registered under
Section 12 of the Exchange Act, then (1) if such Person is a direct or indirect
Subsidiary of another Person the Common Stock of which is and has been so
registered, the term "Principal Party" shall refer to such other Person, or (2)
if such Person is a Subsidiary, directly or indirectly, of more than one Person,
the Common Stock of all of which is and has been so registered, the term
"Principal Party" shall refer to whichever of such Persons is the issuer of
Common Stock having the greatest aggregate market value of shares outstanding,
or (3) if such Person is owned, directly or indirectly, by a joint venture
formed by two or more Persons that are not owned, directly or indirectly, by the
same Person, the rules set forth in clauses (1) and (2) above shall apply to
each of the owners having an interest in the venture as if the Person owned by
the joint venture was a Subsidiary of both or all of such joint venturers, and
the Principal Party in each such case shall bear the obligations set forth in
this Section 13 in the same ratio as its interest in such Person bears to the
total of such interests.

            (c)     The Company shall not consummate any consolidation, merger,
sale or transfer referred to in Section 13(a) hereof unless prior thereto the
Company and the Principal Party involved therein shall have executed and
delivered to the Rights Agent an agreement confirming that the requirements of
Sections 13(a) and (b) hereof shall promptly be performed in accordance with
their terms and that such consolidation, merger, sale or transfer of assets
shall not result in a default by the Principal Party under this Agreement as the
same shall have been assumed by the Principal Party pursuant to Sections 13(a)
and (b) hereof and providing that, as soon as practicable after executing such
agreement pursuant to this Section 13, the Principal Party will:

                   (i)   prepare and file a registration statement under the
Securities Act, if necessary, with respect to the Rights and the securities
purchasable upon exercise of the Rights on an appropriate form, use its best
efforts to cause such registration statement to become effective as soon as
practicable after such filing and use its best efforts to cause such
registration statement to remain effective (with a prospectus at all times
meeting the requirements of the Securities Act) until the Expiration Date and
similarly comply with applicable state securities laws;

                   (ii)  use its best efforts, if the Common Stock of the
Principal Party shall be listed or admitted to trading on the New York Stock
Exchange or on another national securities exchange, to list or admit to trading
(or continue the listing of) the Rights and the securities purchasable upon
exercise of the Rights on the New York Stock Exchange or such securities
exchange, or, if the Common Stock of the Principal Party shall not be listed or
admitted to trading on the New York Stock Exchange or a national securities
exchange, to cause the Rights and the securities receivable upon exercise of the
Rights to be authorized for quotation on NASDAQ or on such other system then in
use;

                   (iii) deliver to holders of the Rights historical financial
statements for the Principal Party which comply in all respects with the
requirements for registration on Form 10 (or any successor form) under the
Exchange Act; and

                   (iv) obtain waivers of any rights of first refusal or
preemptive rights in respect of the Common Stock of the Principal Party subject
to purchase upon exercise of outstanding Rights.

                                      18
<PAGE>

            (d)     In case the Principal Party has a provision in any of its
authorized securities or in its certificate of incorporation or by-laws or other
instrument governing its affairs, which provision would have the effect of (i)
causing such Principal Party to issue (other than to holders of Rights pursuant
to this Section 13), in connection with, or as a consequence of, the
consummation of a transaction referred to in this Section 13, shares of Common
Stock or Common Stock Equivalents of such Principal Party at less than the then
current market price per share thereof (determined pursuant to Section 11(d)
hereof) or securities exercisable for, or convertible into, Common Stock or
Common Stock Equivalents of such Principal Party at less than such then current
market price, or (ii) providing for any special payment, tax or similar
provision in connection with the issuance of the Common Stock of such Principal
Party pursuant to the provisions of Section 13, then, in such event, the Company
hereby agrees with each holder of Rights that it shall not consummate any such
transaction unless prior thereto the Company and such Principal Party shall have
executed and delivered to the Rights Agent a supplemental agreement providing
that the provision in question of such Principal Party shall have been canceled,
waived or amended, or that the authorized securities shall be redeemed, so that
the applicable provision will have no effect in connection with, or as a
consequence of, the consummation of the proposed transaction.

            (e)     The Company covenants and agrees that it shall not, at any
time after the Flip-In Event, enter into any transaction of the type described
in clauses (i) through (iii) of Section 13(a) hereof if (i) at the time of or
immediately after such consolidation, merger, sale, transfer or other
transaction there are any rights, warrants or other instruments or securities
outstanding or agreements in effect which would substantially diminish or
otherwise eliminate the benefits intended to be afforded by the Rights, (ii)
prior to, simultaneously with or immediately after such consolidation, merger,
sale, transfer or other transaction, the stockholders of the Person who
constitutes, or would constitute, the Principal Party for purposes of Section
13(b) hereof shall have received a distribution of Rights previously owned by
such Person or any of its Affiliates or Associates or (iii) the form or nature
of organization of the Principal Party would preclude or limit the
exercisability of the Rights.

            Section 14.  Fractional Rights and Fractional Shares.
                         ---------------------------------------

            (a)     The Company shall not be required to issue fractions of
Rights (except prior to the Distribution Date in accordance with Section 11(n)
hereof) or to distribute Right Certificates which evidence fractional Rights. In
lieu of such fractional Rights, there shall be paid to the registered holders of
the Right Certificates with regard to which such fractional Rights would
otherwise be issuable, an amount in cash equal to the same fraction of the
current market value of a whole Right. For the purposes of this Section 14(a),
the current market value of a whole Right shall be the closing price of the
Rights for the Trading Day immediately prior to the date on which such
fractional Rights would have been otherwise issuable. The closing price for any
day shall be the last sale price, regular way, or, in case no such sale takes
place on such day, the average of the closing bid and asked prices, regular way,
in either case as reported in the principal consolidated transaction reporting
system with respect to securities listed or admitted to trading on the New York
Stock Exchange or, if the Rights are not listed or admitted to trading on the
New York Stock Exchange, as reported in the principal consolidated transaction
reporting system with respect to securities listed on the principal national
securities exchange on which the Rights are listed or admitted to trading or, if
the Rights are not listed or admitted to trading on any national securities
exchange, the last quoted price or, if not so quoted, the average of the high
bid and low asked prices in the over-the-counter market, as reported by NASDAQ
or such other system then in use or, if on any such date the Rights are not
quoted by any such organization, the average of the closing bid and asked prices
as furnished by a professional market maker making a market in the Rights
selected by the Board of Directors of the Company. If on any such date no such
market maker is making a market in the Rights, the fair value of the Rights on
such date as determined in good faith by the Board of Directors of the Company
shall be used.

            (b)     The Company shall not be required to issue fractions of
Preferred Stock (other than fractions which are integral multiples of one
one-thousandth of a share of Preferred Stock) or to distribute certificates
which evidence fractional shares of Preferred Stock (other than fractions which
are integral multiples of one one-thousandth of a share of Preferred Stock) upon
the exercise or exchange of Rights. Interests in fractions of Preferred Stock in
integral multiples of one one-thousandth of a share of Preferred

                                      19
<PAGE>

Stock may, at the election of the Company, be evidenced by depositary receipts,
pursuant to an appropriate agreement between the Company and a depositary
selected by it; provided, that such agreement shall provide that the holders of
such depositary receipts shall have all the rights, privileges and preferences
to which they are entitled as beneficial owners of the Preferred Stock
represented by such depositary receipts. In lieu of fractional shares of
Preferred Stock that are not integral multiples of one one-thousandth of a share
of Preferred Stock, the Company shall pay to the registered holders of Right
Certificates at the time such Rights are exercised or exchanged as herein
provided an amount in cash equal to the same fraction of the current market
value of a whole share of Preferred Stock (as determined in accordance with
Section 14(a) hereof) for the Trading Day immediately prior to the date of such
exercise or exchange.

            (c)     The Company shall not be required to issue fractions of
shares of Common Stock or to distribute certificates which evidence fractional
shares of Common Stock upon the exercise or exchange of Rights. In lieu of such
fractional shares of Common Stock, the Company shall pay to the registered
holders of the Right Certificates with regard to which such fractional shares of
Common Stock would otherwise be issuable an amount in cash equal to the same
fraction of the current market value of a whole share of Common Stock (as
determined in accordance with Section 14(a) hereof) for the Trading Day
immediately prior to the date of such exercise or exchange.

            (d)     The holder of a Right by the acceptance of the Right
expressly waives his right to receive any fractional Rights or any fractional
shares upon exercise or exchange of a Right (except as provided above).

            Section 15. Rights of Action. All rights of action in respect of
                        ----------------
this Agreement, excepting the rights of action given to the Rights Agent under
Section 18 hereof, are vested in the respective registered holders of the Right
Certificates (and, prior to the Distribution Date, the registered holders of the
Common Stock); and any registered holder of any Right Certificate (or, prior to
the Distribution Date, of the Common Stock), without the consent of the Rights
Agent or of the holder of any other Right Certificate (or, prior to the
Distribution Date, of the Common Stock), on his own behalf and for his own
benefit, may enforce, and may institute and maintain any suit, action or
proceeding against the Company to enforce, or otherwise act in respect of, his
right to exercise the Rights evidenced by such Right Certificate (or, prior to
the Distribution Date, such Common Stock) in the manner provided therein and in
this Agreement. Without limiting the foregoing or any remedies available to the
holders of Rights, it is specifically acknowledged that the holders of Rights
would not have an adequate remedy at law for any breach of this Agreement and
will be entitled to specific performance of the obligations under, and
injunctive relief against actual or threatened violations of, the obligations of
any Person subject to this Agreement.

            Section 16. Agreement of Right Holders. Every holder of a Right, by
                        --------------------------
accepting the same, consents and agrees with the Company and the Rights Agent
and with every other holder of a Right that:

            (a)     prior to the Distribution Date, the Rights will be
transferable only in connection with the transfer of the Common Stock;

            (b)     after the Distribution Date, the Right Certificates are
transferable only on the registry books of the Rights Agent if surrendered at
the office or agency of the Rights Agent designated for such purpose, duly
endorsed or accompanied by a proper instrument of transfer; and

            (c)     the Company and the Rights Agent may deem and treat the
Person in whose name the Right Certificate (or, prior to the Distribution Date,
the Common Stock certificate) is registered as the absolute owner thereof and of
the Rights evidenced thereby (notwithstanding any notations of ownership or
writing on the Right Certificates or the Common Stock certificate made by anyone
other than the Company or the Rights Agent) for all purposes whatsoever, and
neither the Company nor the Rights Agent, subject to Section 7(e) hereof, shall
be affected by any notice to the contrary.

            Section 17. Right Certificate Holder Not Deemed a Stockholder. No
                        -------------------------------------------------
holder, as such, of any Right Certificate shall be entitled to vote, receive
dividends or be deemed for any purpose the holder of the

                                      20
<PAGE>

Preferred Stock or any other securities of the Company which may at any time be
issuable on the exercise or exchange of the Rights represented thereby, nor
shall anything contained herein or in any Right Certificate be construed to
confer upon the holder of any Right Certificate, as such, any of the rights of a
stockholder of the Company or any right to vote for the election of directors or
upon any matter submitted to stockholders at any meeting thereof, or to give or
withhold consent to any corporate action, or to receive notice of meetings or
other actions affecting stockholders (except as provided in this Agreement), or
to receive dividends or subscription rights, or otherwise, until the Rights
evidenced by such Right Certificate shall have been exercised or exchanged in
accordance with the provisions hereof.

          Section 18.  Concerning the Rights Agent.
                       ---------------------------

          (a)  The Company agrees to pay to the Rights Agent reasonable
compensation for all services rendered by it hereunder and, from time to time,
on demand of the Rights Agent, its reasonable expenses and counsel fees and
other disbursements incurred in the administration and execution of this
Agreement and the exercise and performance of its duties hereunder. The Company
also agrees to indemnify the Rights Agent for, and to hold it harmless against,
any loss, liability or expense, incurred without gross negligence, bad faith or
willful misconduct on the part of the Rights Agent, for anything done or omitted
by the Rights Agent in connection with the acceptance and administration of this
Agreement, including the costs and expenses of defending against any claim of
liability arising therefrom, directly or indirectly.

          (b)  The Rights Agent shall be protected and shall incur no liability
for, or in respect of any action taken, suffered or omitted by it in connection
with, its administration of this Agreement in reliance upon any Right
Certificate or certificate for the Preferred Stock or Common Stock or for other
securities of the Company, instrument of assignment or transfer, power of
attorney, endorsement, affidavit, letter, notice, direction, consent,
certificate, statement or other paper or document believed by it to be genuine
and to be signed, executed and, where necessary, verified or acknowledged, by
the proper Person or Persons, or otherwise upon the advice of counsel as set
forth in Section 20 hereof.

          Section 19.  Merger or Consolidation or Change of Name of Rights
                       ---------------------------------------------------
Agent.
-----

          (a)  Any corporation into which the Rights Agent or any successor
Rights Agent may be merged or with which it may be consolidated, or any
corporation resulting from any merger or consolidation to which the Rights Agent
or any successor Rights Agent shall be a party, or any corporation succeeding to
the stock transfer or corporate trust powers of the Rights Agent or any
successor Rights Agent, shall be the successor to the Rights Agent under this
Agreement without the execution or filing of any paper or any further act on the
part of any of the parties hereto; provided, that such corporation would be
                                   --------
eligible for appointment as a successor Rights Agent under the provisions of
Section 21 hereof. In case at the time such successor Rights Agent shall succeed
to the agency created by this Agreement, any of the Right Certificates shall
have been countersigned but not delivered, any such successor Rights Agent may
adopt the countersignature of the predecessor Rights Agent and deliver such
Right Certificates so countersigned; and in case at that time any of the Right
Certificates shall not have been countersigned, any successor Rights Agent may
countersign such Right Certificates either in the name of the predecessor Rights
Agent or in the name of the successor Rights Agent; and in all such cases such
Right Certificates shall have the full force provided in the Right Certificates
and in this Agreement.

          (b)  In case at any time the name of the Rights Agent shall be changed
and at such time any of the Right Certificates shall have been countersigned but
not delivered, the Rights Agent may adopt the countersignature under its prior
name and deliver Right Certificates so countersigned; and in case at that time
any of the Right Certificates shall not have been countersigned, the Rights
Agent may countersign such Right Certificates either in its prior name or in its
changed name and in all such cases such Right Certificates shall have the full
force provided in the Right Certificates and in this Agreement.

          Section 20.  Duties of Rights Agent. The Rights Agent undertakes the
                       ----------------------
duties and obligations imposed by this Agreement upon the following terms and
conditions, by all of which the Company and the holders of Right Certificates,
by their acceptance thereof, shall be bound:

                                      21
<PAGE>

          (a)  The Rights Agent may consult with legal counsel (who may be legal
counsel for the Company), and the opinion of such counsel shall be full and
complete authorization and protection to the Rights Agent as to any action taken
or omitted by it in good faith and in accordance with such opinion.

          (b)  Whenever in the performance of its duties under this Agreement
the Rights Agent shall deem it necessary or desirable that any fact or matter be
proved or established by the Company prior to taking or suffering any action
hereunder, such fact or matter (unless other evidence in respect thereof be
herein specifically prescribed) may be deemed to be conclusively proved and
established by a certificate signed by the President and the Secretary of the
Company and delivered to the Rights Agent; and such certificate shall be full
authorization to the Rights Agent for any action taken or suffered in good faith
by it under the provisions of this Agreement in reliance upon such certificate.

          (c)  The Rights Agent shall be liable hereunder to the Company and any
other Person only for its own gross negligence, bad faith or willful misconduct.

          (d)  The Rights Agent shall not be liable for or by reason of any of
the statements of fact or recitals contained in this Agreement or in the Right
Certificates (except its countersignature thereof) or be required to verify the
same, but all such statements and recitals are and shall be deemed to have been
made by the Company only.

          (e)  The Rights Agent shall not be under any responsibility in respect
of the validity of this Agreement or the execution and delivery hereof (except
the due execution hereof by the Rights Agent) or in respect of the validity or
execution of any Right Certificate (except its countersignature thereof); nor
shall it be responsible for any breach by the Company of any covenant or
condition contained in this Agreement or in any Right Certificate; nor shall it
be responsible for any change in the exercisability of the Rights (including the
Rights becoming void pursuant to Section 11(a)(ii) hereof) or any adjustment in
the terms of the Rights provided for in Sections 3, 11, 13, 23 and 24, or the
ascertaining of the existence of facts that would require any such change or
adjustment (except with respect to the exercise of Rights evidenced by Right
Certificates after receipt of a certificate furnished pursuant to Section 12,
describing such change or adjustment); nor shall it by any act hereunder be
deemed to make any representation or warranty as to the authorization or
reservation of any shares of Preferred Stock or other securities to be issued
pursuant to this Agreement or any Right Certificate or as to whether any shares
of Preferred Stock or other securities will, when issued, be validly authorized
and issued, fully paid and nonassessable.

          (f)  The Company agrees that it will perform, execute, acknowledge and
deliver or cause to be performed, executed, acknowledged and delivered all such
further and other acts, instruments and assurances as may reasonably be required
by the Rights Agent for the carrying out or performing by the Rights Agent of
the provisions of this Agreement.

          (g)  The Rights Agent is hereby authorized and directed to accept
instructions with respect to the performance of its duties hereunder from any
person reasonably believed by the Rights Agent to be one of the President or the
Secretary of the Company, and to apply to such officers for advice or
instructions in connection with its duties, and it shall not be liable for any
action taken or suffered by it in good faith in accordance with instructions of
any such officer or for any delay in acting while waiting for those
instructions. Any application by the Rights Agent for written instructions from
the Company may, at the option of the Rights Agent, set forth in writing any
action proposed to be taken or omitted by the Rights Agent under this Agreement
and the date on and/or after which such action shall be taken or such omission
shall be effective. The Rights Agent shall not be liable for any action taken
by, or omission of, the Rights Agent in accordance with a proposal included in
any such application on or after the date specified in such application (which
date shall not be less than five Business Days after the date any officer of the
Company actually receives such application unless any such officer shall have
consented in writing to an earlier date) unless, prior to taking any such action
(or the effective date in the case of an omission), the Rights Agent shall have
received written instructions in response to such application specifying the
action to be taken or omitted.

                                      22
<PAGE>

          (h)  The Rights Agent and any stockholder, director, officer or
employee of the Rights Agent may buy, sell or deal in any of the Rights or other
securities of the Company or become pecuniarily interested in any transaction in
which the Company may be interested, or contract with or lend money to the
Company or otherwise act as fully and freely as though it were not Rights Agent
under this Agreement. Nothing herein shall preclude the Rights Agent from acting
in any other capacity for the Company or for any other legal entity.

          (i)  The Rights Agent may execute and exercise any of the rights or
powers hereby vested in it or perform any duty hereunder either itself or by or
through its attorneys or agents, and the Rights Agent shall not be answerable or
accountable for any act, default, neglect or misconduct of any such attorneys or
agents or for any loss to the Company resulting from any such act, default,
neglect or misconduct, provided reasonable care was exercised in the selection
and continued employment thereof.

          (j)  If, with respect to any Rights Certificate surrendered to the
Rights Agent for exercise or transfer, the certificate contained in the form of
assignment or the form of election to purchase set forth on the reverse thereof,
as the case may be, has not been completed to certify the holder is not an
Acquiring Person (or an Affiliate or Associate thereof) or a transferee thereof,
the Rights Agent shall not take any further action with respect to such
requested exercise or transfer without first consulting with the Company.

          Section 21.  Change of Rights Agent. The Rights Agent or any successor
                       ----------------------
Rights Agent may resign and be discharged from its duties under this Agreement
upon 30 days' notice in writing mailed to the Company and to each transfer agent
of the Common Stock or Preferred Stock by registered or certified mail, and,
following the Distribution Date, to the holders of the Right Certificates by
first-class mail. The Company may remove the Rights Agent or any successor
Rights Agent upon 30 days' notice in writing, mailed to the Rights Agent or
successor Rights Agent, as the case may be, and to each transfer agent of the
Common Stock or Preferred Stock by registered or certified mail, and, following
the Distribution Date, to the holders of the Right Certificates by first-class
mail. If the Rights Agent shall resign or be removed or shall otherwise become
incapable of acting, the Company shall appoint a successor to the Rights Agent.
If the Company shall fail to make such appointment within a period of 30 days
after giving notice of such removal or after it has been notified in writing of
such resignation or incapacity by the resigning or incapacitated Rights Agent or
by the holder of a Right Certificate (who shall, with such notice, submit his
Right Certificate for inspection by the Company), then the registered holder of
any Right Certificate may apply to any court of competent jurisdiction for the
appointment of a new Rights Agent. Any successor Rights Agent, whether appointed
by the Company or by such a court, shall be a corporation organized and doing
business under the laws of the United States or the laws of any state of the
United States or the District of Columbia, in good standing, having an office in
the State of Texas or the State of New York, which is authorized under such laws
to exercise corporate trust or stock transfer powers and is subject to
supervision or examination by federal or state authority and which has at the
time of its appointment as Rights Agent a combined capital and surplus of at
least $50 million. After appointment, the successor Rights Agent shall be vested
with the same powers, rights, duties and responsibilities as if it had been
originally named as Rights Agent without further act or deed; but the
predecessor Rights Agent shall deliver and transfer to the successor Rights
Agent any property at the time held by it hereunder, and execute and deliver any
further assurance, conveyance, act or deed necessary for the purpose. Not later
than the effective date of any such appointment the Company shall file notice
thereof in writing with the predecessor Rights Agent and each transfer agent of
the Common Stock or Preferred Stock, and, following the Distribution Date, mail
a notice thereof in writing to the registered holders of the Right Certificates.
Failure to give any notice provided for in this Section 21, however, or any
defect therein, shall not affect the legality or validity of the resignation or
removal of the Rights Agent or the appointment of the successor Rights Agent, as
the case may be.

          Section 22.  Issuance of New Right Certificates. Notwithstanding any
                       ----------------------------------
of the provisions of this Agreement or of the Rights to the contrary, the
Company may, at its option, issue new Right Certificates evidencing Rights in
such forms as may be approved by its Board of Directors to reflect any
adjustment or change in the Purchase Price and the number or kind or class of
shares or other securities or property purchasable under the Right Certificates
made in accordance with the provisions of this Agreement. In

                                      23
<PAGE>

addition, in connection with the issuance or sale of Common Stock following the
Distribution Date and prior to the Expiration Date, the Company may with respect
to shares of Common Stock so issued or sold pursuant to (i) the exercise of
stock options, (ii) under any employee plan or arrangement, (iii) upon the
exercise, conversion or exchange of securities, notes or debentures issued by
the Company or (iv) a contractual obligation of the Company, in each case
existing prior to the Distribution Date, issue Rights Certificates representing
the appropriate number of Rights in connection with such issuance or sale.

          Section 23.  Redemption.
                       ----------

          (a)  The Board of Directors of the Company may, at any time prior to
the Flip-In Event, redeem all but not less than all the then outstanding Rights
at a redemption price of $.01 per Right, appropriately adjusted to reflect any
stock split, stock dividend or similar transaction occurring in respect of the
Common Stock after the date hereof (the redemption price being hereinafter
referred to as the "Redemption Price"). The redemption of the Rights may be made
effective at such time, on such basis and with such conditions as the Board of
Directors in its sole discretion may establish. The Redemption Price shall be
payable, at the option of the Company, in cash, shares of Common Stock, or such
other form of consideration as the Board of Directors shall determine.

          (b)  Immediately upon the action of the Board of Directors ordering
the redemption of the Rights pursuant to paragraph (a) of this Section 23 (or at
such later time as the Board of Directors may establish for the effectiveness of
such redemption), and without any further action and without any notice, the
right to exercise the Rights will terminate and the only right thereafter of the
holders of Rights shall be to receive the Redemption Price. The Company shall
promptly give public notice of any such redemption; provided, however, that the
                                                    --------  -------
failure to give, or any defect in, any such notice shall not affect the validity
of such redemption. Within 10 days after such action of the Board of Directors
ordering the redemption of the Rights (or such later time as the Board of
Directors may establish for the effectiveness of such redemption), the Company
shall mail a notice of redemption to all the holders of the then outstanding
Rights at their last addresses as they appear upon the registry books of the
Rights Agent or, prior to the Distribution Date, on the registry books of the
transfer agent for the Common Stock. Any notice which is mailed in the manner
herein provided shall be deemed given, whether or not the holder receives the
notice. Each such notice of redemption shall state the method by which the
payment of the Redemption Price will be made.

          Section 24.  Exchange.
                       --------

          (a)  The Board of Directors of the Company may, at its option, at any
time after the Flip-In Event, exchange all or part of the then outstanding and
exercisable Rights (which shall not include Rights that have become void
pursuant to the provisions of Section 11(a)(ii) hereof) for Common Stock at an
exchange ratio of one share of Common Stock per Right, appropriately adjusted to
reflect any stock split, stock dividend or similar transaction occurring in
respect of the Common Stock after the date hereof (such amount per Right being
hereinafter referred to as the "Exchange Ratio"). Notwithstanding the foregoing,
the Board of Directors shall not be empowered to effect such exchange at any
time after an Acquiring Person shall have become the Beneficial Owner of shares
of Common Stock aggregating 50% or more of the shares of Common Stock then
outstanding. From and after the occurrence of an event specified in Section
13(a) hereof, any Rights that theretofore have not been exchanged pursuant to
this Section 24(a) shall thereafter be exercisable only in accordance with
Section 13 and may not be exchanged pursuant to this Section 24(a). The exchange
of the Rights by the Board of Directors may be made effective at such time, on
such basis and with such conditions as the Board of Directors in its sole
discretion may establish.

          (b)  Immediately upon the effectiveness of the action of the Board of
Directors of the Company ordering the exchange of any Rights pursuant to
paragraph (a) of this Section 24 and without any further action and without any
notice, the right to exercise such Rights shall terminate and the only right
thereafter of a holder of such Rights shall be to receive that number of shares
of Common Stock equal to the number of such Rights held by such holder
multiplied by the Exchange Ratio. The Company shall promptly give public notice
of any such exchange; provided, however, that the failure to give, or any defect
                      --------  -------
in, such notice shall not affect the validity of such exchange. The Company
shall promptly mail a notice of any such

                                      24
<PAGE>

exchange to all of the holders of the Rights so exchanged at their last
addresses as they appear upon the registry books of the Rights Agent. Any notice
which is mailed in the manner herein provided shall be deemed given, whether or
not the holder receives the notice. Each such notice of exchange will state the
method by which the exchange of the shares of Common Stock for Rights will be
effected and, in the event of any partial exchange, the number of Rights which
will be exchanged. Any partial exchange shall be effected pro rata based on the
number of Rights (other than Rights which have become void pursuant to the
provisions of Section 11(a)(ii) hereof) held by each holder of Rights.

          (c)  The Company may at its option substitute, and, in the event that
there shall not be sufficient shares of Common Stock issued but not outstanding
or authorized but unissued to permit an exchange of Rights for Common Stock as
contemplated in accordance with this Section 24, the Company shall substitute to
the extent of such insufficiency, for each share of Common Stock that would
otherwise be issuable upon exchange of a Right, a number of shares of Preferred
Stock or fraction thereof (or Equivalent Preferred Shares, as such term is
defined in Section 11(b)) such that the current per share market price
(determined pursuant to Section 11(d) hereof) of one share of Preferred Stock
(or Equivalent Preferred Share) multiplied by such number or fraction is equal
to the current per share market price of one share of Common Stock (determined
pursuant to Section 11(d) hereof) as of the date of such exchange.

          Section 25.  Notice of Certain Events.
                       ------------------------

          (a)  In case the Company shall at any time after the earlier of the
Distribution Date or the Stock Acquisition Date propose (i) to pay any dividend
payable in stock of any class to the holders of its Preferred Stock or to make
any other distribution to the holders of its Preferred Stock (other than a
regular quarterly cash dividend), (ii) to offer to the holders of its Preferred
Stock rights or warrants to subscribe for or to purchase any additional shares
of Preferred Stock or shares of stock of any class or any other securities,
rights or options, (iii) to effect any reclassification of its Preferred Stock
(other than a reclassification involving only the subdivision or combination of
outstanding Preferred Stock), (iv) to effect the liquidation, dissolution or
winding up of the Company, or (v) to pay any dividend on the Common Stock
payable in Common Stock or to effect a subdivision, combination or consolidation
of the Common Stock (by reclassification or otherwise than by payment of
dividends in Common Stock), then, in each such case, the Company shall give to
each holder of a Right Certificate, in accordance with Section 26 hereof, a
notice of such proposed action, which shall specify the record date for the
purposes of such dividend or distribution or offering of rights or warrants, or
the date on which such liquidation, dissolution, winding up, reclassification,
subdivision, combination or consolidation is to take place and the date of
participation therein by the holders of the Common Stock and/or Preferred Stock,
if any such date is to be fixed, and such notice shall be so given in the case
of any action covered by clause (i) or (ii) above at least 10 days prior to the
record date for determining holders of the Preferred Stock for purposes of such
action, and in the case of any such other action, at least 10 days prior to the
date of the taking of such proposed action or the date of participation therein
by the holders of the Common Stock and/or Preferred Stock, whichever shall be
the earlier.

          (b)  In case any event described in Section 11(a)(ii) or Section 13
shall occur then the Company shall as soon as practicable thereafter give to
each holder of a Right Certificate (or if occurring prior to the Distribution
Date, the holders of the Common Stock) in accordance with Section 26 hereof, a
notice of the occurrence of such event, which notice shall describe such event
and the consequences of such event to holders of Rights under Section 11(a)(ii)
and Section 13 hereof.

          Section 26. Notices. Notices or demands authorized by this Agreement
                      -------
to be given or made by the Rights Agent or by the holder of any Right
Certificate to or on the Company shall be sufficiently given or made if sent by
first-class mail, postage prepaid, addressed (until another address is filed in
writing with the Rights Agent) as follows:

                          DuPont Photomasks, Inc.
                          131 Old Settlers Blvd.
                          Round Rock, TX  78664
                          Attention: Mark Syrnick

                                      25
<PAGE>

Subject to the provisions of Section 21 hereof, any notice or demand authorized
by this Agreement to be given or made by the Company or by the holder of any
Right Certificate to or on the Rights Agent shall be sufficiently given or made
if sent by first-class mail, postage prepaid, addressed (until another address
is filed in writing with the Company) as follows:

                          EquiServe Trust Company, N.A.
                          525 Washington Blvd.
                          Jersey City, NJ 07310
                          Attention:  Francis E. Wolf, Jr.

Notices or demands authorized by this Agreement to be given or made by the
Company or the Rights Agent to the holder of any Right Certificate shall be
sufficiently given or made if sent by first-class mail, postage prepaid,
addressed to such holder at the address of such holder as shown on the registry
books of the Company.

          Section 27.  Supplements and Amendments. Except as provided in the
                       --------------------------
penultimate sentence of this Section 27, for so long as the Rights are then
redeemable, the Company may in its sole and absolute discretion, and the Rights
Agent shall if the Company so directs, supplement or amend any provision of this
Agreement in any respect without the approval of any holders of the Rights. At
any time when the Rights are no longer redeemable, except as provided in the
penultimate sentence of this Section 27, the Company may, and the Rights Agent
shall, if the Company so directs, supplement or amend this Agreement without the
approval of any holders of Rights, provided that no such supplement or amendment
                                   --------
may (a) adversely affect the interests of the holders of Rights as such (other
than an Acquiring Person or an Affiliate or Associate of an Acquiring Person),
(b) cause this Agreement again to become amendable other than in accordance with
this sentence or (c) cause the Rights again to become redeemable.
Notwithstanding anything contained in this Agreement to the contrary, no
supplement or amendment shall be made which changes the Redemption Price. Upon
the delivery of a certificate from an appropriate officer of the Company which
states that the supplement or amendment is in compliance with the terms of this
Section 27, the Rights Agent shall execute such supplement or amendment,
provided that any supplement or amendment that does not amend Sections 18, 19,
--------
20 or 21 hereof in a manner adverse to the Rights Agent shall become effective
immediately upon execution by the Company, whether or not also executed by the
Rights Agent.

          Section 28.  Successors. All the covenants and provisions of this
                       ----------
Agreement by or for the benefit of the Company or the Rights Agent shall bind
and inure to the benefit of their respective successors and assigns hereunder.

          Section 29.  Benefits of this Agreement. Nothing in this Agreement
                       --------------------------
shall be construed to give to any Person other than the Company, the Rights
Agent and the registered holders of the Right Certificates (and, prior to the
Distribution Date, the Common Stock) any legal or equitable right, remedy or
claim under this Agreement; but this Agreement shall be for the sole and
exclusive benefit of the Company, the Rights Agent and the registered holders of
the Right Certificates (and, prior to the Distribution Date, the Common Stock).

          Section 30.  Determinations and Actions by the Board of Directors. The
                       ----------------------------------------------------
Board of Directors of the Company shall have the exclusive power and authority
to administer this Agreement and to exercise the rights and powers specifically
granted to the Board of Directors of the Company or to the Company, or as may be
necessary or advisable in the administration of this Agreement, including,
without limitation, the right and power to (i) interpret the provisions of this
Agreement and (ii) make all determinations deemed necessary or advisable for the
administration of this Agreement (including, without limitation, a determination
to redeem or not redeem the Rights or to amend or not amend this Agreement). All
such actions, calculations, interpretations and determinations that are done or
made by the Board of Directors of the Company in good faith shall be final,
conclusive and binding on the Company, the Rights Agent, the holders of the
Rights, as such, and all other parties.

                                      26
<PAGE>

          Section 31.  Severability. If any term, provision, covenant or
                       ------------
restriction of this Agreement is held by a court of competent jurisdiction or
other authority to be invalid, void or unenforceable, the remainder of the
terms, provisions, covenants and restrictions of this Agreement shall remain in
full force and effect and shall in no way be affected, impaired or invalidated.

          Section 32.  Governing Law. This Agreement and each Right Certificate
                       -------------
issued hereunder shall be deemed to be a contract made under the laws of the
State of Delaware and for all purposes shall be governed by and construed in
accordance with the laws of such State applicable to contracts to be made and
performed entirely within such State.

          Section 33.  Counterparts. This Agreement may be executed in any
                       ------------
number of counterparts and each of such counterparts shall for all purposes be
deemed to be an original, and all such counterparts shall together constitute
but one and the same instrument.

          Section 34.  Descriptive Headings. Descriptive headings of the several
                       --------------------
Sections of this Agreement are inserted for convenience only and shall not
control or affect the meaning or construction of any of the provisions hereof.

          IN WITNESS WHEREOF, the parties hereto have caused this Agreement to
be duly executed, all as of the day and year first above written.

                          DUPONT PHOTOMASKS, INC.

                          By: /s/ Mark Syrnick
                              ----------------
                          Name: Mark Syrnick
                                ------------
                          Title: Deputy General Counsel and Assistant Secretary
                                 ----------------------------------------------

                          EQUISERVE TRUST COMPANY, N.A.,
                          as Rights Agent

                          By: /s/ Francis E. Wolf, Jr.
                              ------------------------
                          Name: Francis E. Wolf, Jr.
                                ------------------------
                          Title: Managing Director
                                 -----------------------

                                      27
<PAGE>

                                                                       Exhibit A
                                                                       ---------

                                    FORM OF
                          CERTIFICATE OF DESIGNATION

                                      of

                 SERIES A JUNIOR PARTICIPATING PREFERRED STOCK

                                      of

                            DUPONT PHOTOMASKS, INC.

            Pursuant to Section 151 of the General Corporation Law
                           of the State of Delaware

          DuPont Photomasks, Inc., a corporation organized and existing under
the General Corporation Law of the State of Delaware (the "Corporation"), in
accordance with the provisions of Section 103 thereof, DOES HEREBY CERTIFY:

          That pursuant to the authority vested in the Board of Directors in
accordance with the provisions of the Restated Certificate of Incorporation of
the said Corporation, the said Board of Directors on January 30, 2001 adopted
the following resolution creating a series of 100,000 shares of Preferred Stock
designated as "Series A Junior Participating Preferred Stock":

                    RESOLVED, that pursuant to the authority
          vested in the Board of Directors of this
          Corporation in accordance with the provisions of
          the Restated Certificate of Incorporation, a
          series of Preferred Stock, par value $.01 per
          share, of the Corporation be and hereby is
          created, and that the designation and number of
          shares thereof and the voting and other powers,
          preferences and relative, participating, optional
          or other rights of the shares of such series and
          the qualifications, limitations and restrictions
          thereof are as follows:

                 Series A Junior Participating Preferred Stock

          1.   Designation and Amount. There shall be a series of Preferred
Stock that shall be designated as "Series A Junior Participating Preferred
Stock," and the number of shares constituting such series shall be 100,000. Such
number of shares may be increased or decreased by resolution of the Board of
Directors; provided, however, that no decrease shall reduce the number of shares
of Series A Junior Participating Preferred Stock to less than the number of
shares then issued and outstanding plus the number of shares issuable upon
exercise of outstanding rights, options or warrants or upon conversion of
outstanding securities issued by the Corporation.

          2.   Dividends and Distribution.

               (A)  Subject to the prior and superior rights of the holders of
any shares of any class or series of stock of the Corporation ranking prior and
superior to the shares of Series A Junior Participating Preferred Stock with
respect to dividends, the holders of shares of Series A Junior Participating
Preferred Stock, in preference to the holders of shares of any class or series
of stock of the Corporation ranking junior to the Series A Junior Participating
Preferred Stock in respect thereof, shall be entitled to receive, when, as and
if declared by the Board of Directors out of funds legally available for the
purpose, quarterly dividends payable in cash on the 1st day of March, June,
September and December, in each year (each such date being referred to herein as
a "Quarterly Dividend Payment Date"), commencing on the first Quarterly Dividend
Payment Date after the first issuance of a share or fraction of a share of
Series A Junior Participating Preferred Stock, in an amount per share (rounded
to the nearest cent) equal to the greater of (a)

                                      28
<PAGE>

$1.00 or (b) the Adjustment Number (as defined below) times the aggregate per
share amount of all cash dividends, and the Adjustment Number times the
aggregate per share amount (payable in kind) of all non-cash dividends or other
distributions other than a dividend payable in shares of Common Stock or a
subdivision of the outstanding shares of Common Stock (by reclassification or
otherwise), declared on the Common Stock, par value $.01 per share, of the
Corporation (the "Common Stock") since the immediately preceding Quarterly
Dividend Payment Date, or, with respect to the first Quarterly Dividend Payment
Date, since the first issuance of any share or fraction of a share of Series A
Junior Participating Preferred Stock. The "Adjustment Number" shall initially be
1000. In the event the Corporation shall at any time after January 30, 2001 (i)
declare and pay any dividend on Common Stock payable in shares of Common Stock,
(ii) subdivide the outstanding Common Stock or (iii) combine the outstanding
Common Stock into a smaller number of shares, then in each such case the
Adjustment Number in effect immediately prior to such event shall be adjusted by
multiplying such Adjustment Number by a fraction the numerator of which is the
number of shares of Common Stock outstanding immediately after such event and
the denominator of which is the number of shares of Common Stock that were
outstanding immediately prior to such event.

               (B)  The Corporation shall declare a dividend or distribution on
the Series A Junior Participating Preferred Stock as provided in paragraph (A)
above immediately after it declares a dividend or distribution on the Common
Stock (other than a dividend payable in shares of Common Stock).

               (C)  Dividends shall begin to accrue and be cumulative on
outstanding shares of Series A Junior Participating Preferred Stock from the
Quarterly Dividend Payment Date next preceding the date of issue of such shares
of Series A Junior Participating Preferred Stock, unless the date of issue of
such shares is prior to the record date for the first Quarterly Dividend Payment
Date, in which case dividends on such shares shall begin to accrue from the date
of issue of such shares, or unless the date of issue is a Quarterly Dividend
Payment Date or is a date after the record date for the determination of holders
of shares of Series A Junior Participating Preferred Stock entitled to receive a
quarterly dividend and before such Quarterly Dividend Payment Date, in either of
which events such dividends shall begin to accrue and be cumulative from such
Quarterly Dividend Payment Date. Accrued but unpaid dividends shall not bear
interest. Dividends paid on the shares of Series A Junior Participating
Preferred Stock in an amount less than the total amount of such dividends at the
time accrued and payable on such shares shall be allocated pro rata on a share-
by-share basis among all such shares at the time outstanding. The Board of
Directors may fix a record date for the determination of holders of shares of
Series A Junior Participating Preferred Stock entitled to receive payment of a
dividend or distribution declared thereon, which record date shall be no more
than 60 days prior to the date fixed for the payment thereof.

          3.   Voting Rights. The holders of shares of Series A Junior
Participating Preferred Stock shall have the following voting rights:

               (A)  Each share of Series A Junior Participating Preferred Stock
shall entitle the holder thereof to a number of votes equal to the Adjustment
Number on all matters submitted to a vote of the stockholders of the
Corporation.

               (B)  Except as required by law, by Section 3(C) and by Section 10
hereof, holders of Series A Junior Participating Preferred Stock shall have no
special voting rights and their consent shall not be required (except to the
extent they are entitled to vote with holders of Common Stock as set forth
herein) for taking any corporate action.

               (C)  If, at the time of any annual meeting of stockholders for
the election of directors, the equivalent of six quarterly dividends (whether or
not consecutive) payable on any share or shares of Series A Junior Participating
Preferred Stock are in default, the number of directors constituting the Board
of Directors of the Corporation shall be increased by two. In addition to voting
together with the holders of Common Stock for the election of other directors of
the Corporation, the holders of record of the Series A Junior Participating
Preferred Stock, voting separately as a class to the exclusion of the holders of
Common Stock, shall be entitled at said meeting of stockholders (and at each
subsequent annual meeting of stockholders), unless all dividends in arrears on
the Series A Junior Participating Preferred Stock have been paid or declared and
set apart for payment prior thereto, to vote for the election of two directors
of the Corporation, the holders of any Series A Junior Participating Preferred
Stock being entitled to cast a number

                                       2
<PAGE>

of votes per share of Series A Junior Participating Preferred Stock as is
specified in paragraph (A) of this Section 3. Until the default in payments of
all dividends which permitted the election of said directors shall cease to
exist, any director who shall have been so elected pursuant to the provisions of
this Section 3(C) may be removed at any time, without cause, only by the
affirmative vote of the holders of the shares of Series A Junior Participating
Preferred Stock at the time entitled to cast a majority of the votes entitled to
be cast for the election of any such director at a special meeting of such
holders called for that purpose, and any vacancy thereby created may be filled
by the vote of such holders. If and when such default shall cease to exist, the
holders of the Series A Junior Participating Preferred Stock shall be divested
of the foregoing special voting rights, subject to revesting in the event of
each and every subsequent like default in payments of dividends. Upon the
termination of the foregoing special voting rights, the terms of office of all
persons who may have been elected directors pursuant to said special voting
rights shall forthwith terminate, and the number of directors constituting the
Board of Directors shall be reduced by two. The voting rights granted by this
Section 3(C) shall be in addition to any other voting rights granted to the
holders of the Series A Junior Participating Preferred Stock in this Section 3.

          4.   Certain Restrictions.

               (A)  Whenever quarterly dividends or other dividends or
distributions payable on the Series A Junior Participating Preferred Stock as
provided in Section 2 are in arrears, thereafter and until all accrued and
unpaid dividends and distributions, whether or not declared, on shares of Series
A Junior Participating Preferred Stock outstanding shall have been paid in full,
the Corporation shall not:

                    (i)    declare or pay dividends on, make any other
distributions on, or redeem or purchase or otherwise acquire for consideration
any shares of stock ranking junior (either as to dividends or upon liquidation,
dissolution or winding up) to the Series A Junior Participating Preferred Stock;

                    (ii)   declare or pay dividends on or make any other
distributions on any shares of stock ranking on a parity (either as to dividends
or upon liquidation, dissolution or winding up) with the Series A Junior
Participating Preferred Stock, except dividends paid ratably on the Series A
Junior Participating Preferred Stock and all such parity stock on which
dividends are payable or in arrears in proportion to the total amounts to which
the holders of all such shares are then entitled; or

                    (iii)  purchase or otherwise acquire for consideration any
shares of Series A Junior Participating Preferred Stock, or any shares of stock
ranking on a parity with the Series A Junior Participating Preferred Stock,
except in accordance with a purchase offer made in writing or by publication (as
determined by the Board of Directors) to all holders of Series A Junior
Participating Preferred Stock, or to such holders and holders of any such shares
ranking on a parity therewith, upon such terms as the Board of Directors, after
consideration of the respective annual dividend rates and other relative rights
and preferences of the respective series and classes, shall determine in good
faith will result in fair and equitable treatment among the respective series or
classes.

               (B)  The Corporation shall not permit any subsidiary of the
Corporation to purchase or otherwise acquire for consideration any shares of
stock of the Corporation unless the Corporation could, under paragraph (A) of
this Section 4, purchase or otherwise acquire such shares at such time and in
such manner.

          5.   Reacquired Shares. Any shares of Series A Junior Participating
Preferred Stock purchased or otherwise acquired by the Corporation in any manner
whatsoever shall be retired promptly after the acquisition thereof. All such
shares shall upon their retirement become authorized but unissued shares of
Preferred Stock and may be reissued as part of a new series of Preferred Stock
to be created by resolution or resolutions of the Board of Directors, subject to
any conditions and restrictions on issuance set forth herein.

          6.   Liquidation, Dissolution or Winding Up. (A) Upon any liquidation,
dissolution or winding up of the Corporation, voluntary or otherwise, no
distribution shall be made to the holders of shares of stock ranking junior
(either as to dividends or upon liquidation, dissolution or winding up) to the
Series A Junior Participating Preferred Stock unless, prior thereto, the holders
of shares of Series A Junior

                                       3
<PAGE>

Participating Preferred Stock shall have received an amount per share (the
"Series A Liquidation Preference") equal to the greater of (i) $1.00 plus an
amount equal to accrued and unpaid dividends and distributions thereon, whether
or not declared, to the date of such payment, or (ii) the Adjustment Number
times the per share amount of all cash and other property to be distributed in
respect of the Common Stock upon such liquidation, dissolution or winding up of
the Corporation.

                    (B)    In the event, however, that there are not sufficient
assets available to permit payment in full of the Series A Liquidation
Preference and the liquidation preferences of all other classes and series of
stock of the Corporation, if any, that rank on a parity with the Series A Junior
Participating Preferred Stock in respect thereof, then the assets available for
such distribution shall be distributed ratably to the holders of the Series A
Junior Participating Preferred Stock and the holders of such parity shares in
proportion to their respective liquidation preferences.

                    (C)    Neither the merger or consolidation of the
Corporation into or with another corporation nor the merger or consolidation of
any other corporation into or with the Corporation shall be deemed to be a
liquidation, dissolution or winding up of the Corporation within the meaning of
this Section 6.

               7.   Consolidation, Merger, Etc. In case the Corporation shall
enter into any consolidation, merger, combination or other transaction in which
the outstanding shares of Common Stock are exchanged for or changed into other
stock or securities, cash and/or any other property, then in any such case each
share of Series A Junior Participating Preferred Stock shall at the same time be
similarly exchanged or changed in an amount per share equal to the Adjustment
Number times the aggregate amount of stock, securities, cash and/or any other
property (payable in kind), as the case may be, into which or for which each
share of Common Stock is changed or exchanged.

               8.   No Redemption.  Shares of Series A Junior Participating
Preferred Stock shall not be subject to redemption by the Corporation.

               9.   Ranking. The Series A Junior Participating Preferred Stock
shall rank junior to all other series of the Preferred Stock as to the payment
of dividends and as to the distribution of assets upon liquidation, dissolution
or winding up, unless the terms of any such series shall provide otherwise, and
shall rank senior to the Common Stock as to such matters.

               10.  Amendment. At any time that any shares of Series A Junior
Participating Preferred Stock are outstanding, the Certificate of Incorporation
of the Corporation shall not be amended in any manner which would materially
alter or change the powers, preferences or special rights of the Series A Junior
Participating Preferred Stock so as to affect them adversely without the
affirmative vote of the holders of two-thirds of the outstanding shares of
Series A Junior Participating Preferred Stock, voting separately as a class.

               11.  Fractional Shares. Series A Junior Participating Preferred
Stock may be issued in fractions of a share that shall entitle the holder, in
proportion to such holder's fractional shares, to exercise voting rights,
receive dividends, participate in distributions and to have the benefit of all
other rights of holders of Series A Junior Participating Preferred Stock.

               IN WITNESS WHEREOF, the undersigned has executed this Certificate
this 6th day of February, 2001.

                                             DUPONT PHOTOMASKS, INC.

                                                  /s/ MARK SYRNICK
                                             By: ____________________________
                                                 Name: Mark Syrnick
                                                 Title: Deputy General Counsel
                                                        and Assistant Secretary

                                       4
<PAGE>

                                                                       Exhibit B
                                                                       ---------

                           Form of Right Certificate

Certificate No. R-______

            NOT EXERCISABLE AFTER JANUARY 30, 2011 OR EARLIER IF
            REDEMPTION OR EXCHANGE OCCURS. THE RIGHTS ARE SUBJECT TO
            REDEMPTION AT $.01 PER RIGHT AND TO EXCHANGE ON THE TERMS
            SET FORTH IN THE RIGHTS AGREEMENT. UNDER CERTAIN
            CIRCUMSTANCES, AS SET FORTH IN THE RIGHTS AGREEMENT,
            RIGHTS OWNED BY OR TRANSFERRED TO ANY PERSON WHO IS OR
            BECOMES AN ACQUIRING PERSON (AS DEFINED IN THE RIGHTS
            AGREEMENT) AND CERTAIN TRANSFEREES THEREOF WILL BECOME
            NULL AND VOID AND WILL NO LONGER BE TRANSFERABLE.

                               RIGHT CERTIFICATE

                            DUPONT PHOTOMASKS, INC.

                                       1
<PAGE>

          This certifies that ____________________________ or registered
assigns, is the registered owner of the number of Rights set forth above, each
of which entitles the owner thereof, subject to the terms, provisions and
conditions of the Rights Agreement, dated as of January 30, 2001, as the same
may be amended from time to time (the "Rights Agreement"), between DuPont
Photomasks, Inc., a Delaware corporation (the "Company"), and EquiServe Trust
Company, N.A., as Rights Agent (the "Rights Agent"), to purchase from the
Company at any time after the Distribution Date (as such term is defined in the
Rights Agreement) and prior to 5:00 P.M., New York City time, on January 30,
2011 at the office or agency of the Rights Agent designated for such purpose, or
of its successor as Rights Agent, one one-thousandth of a fully paid non-
assessable share of Series A Junior Participating Preferred Stock, par value
$.01 per share (the "Preferred Stock"), of the Company at a purchase price of
$400.00 per one one-thousandth of a share of Preferred Stock (the "Purchase
Price"), upon presentation and surrender of this Right Certificate with the Form
of Election to Purchase duly executed. The number of Rights evidenced by this
Rights Certificate (and the number of one one-thousandths of a share of
Preferred Stock which may be purchased upon exercise hereof) set forth above,
and the Purchase Price set forth above, are the number and Purchase Price as of
________________, 200_, based on the Preferred Stock as constituted at such
date. As provided in the Rights Agreement, the Purchase Price, the number of one
one-thousandths of a share of Preferred Stock (or other securities or property)
which may be purchased upon the exercise of the Rights and the number of Rights
evidenced by this Right Certificate are subject to modification and adjustment
upon the happening of certain events.

          This Right Certificate is subject to all of the terms, provisions and
conditions of the Rights Agreement, which terms, provisions and conditions are
hereby incorporated herein by reference and made a part hereof and to which
Rights Agreement reference is hereby made for a full description of the rights,
limitations of rights, obligations, duties and immunities hereunder of the
Rights Agent, the Company and the holders of the Right Certificates. Copies of
the Rights Agreement are on file at the principal executive offices of the
Company and the above-mentioned office or agency of the Rights Agent. The
Company will mail to the holder of this Right Certificate a copy of the Rights
Agreement without charge after receipt of a written request therefor.

          This Right Certificate, with or without other Right Certificates, upon
surrender at the office or agency of the Rights Agent designated for such
purpose, may be exchanged for another Right Certificate or Right Certificates of
like tenor and date evidencing Rights entitling the holder to purchase a like
aggregate number of shares of Preferred Stock as the Rights evidenced by the
Right Certificate or Right Certificates surrendered shall have entitled such
holder to purchase. If this Right Certificate shall be exercised in part, the
holder shall be entitled to receive upon surrender hereof another Right
Certificate or Right Certificates for the number of whole Rights not exercised.

          Subject to the provisions of the Rights Agreement, the Rights
evidenced by this Certificate (i) may be redeemed by the Company at a redemption
price of $.01 per Right or (ii) may be exchanged in whole or in part for shares
of the Company's Common Stock, par value $.01 per share, or shares of Preferred
Stock.

          No fractional shares of Preferred Stock or Common Stock will be issued
upon the exercise or exchange of any Right or Rights evidenced hereby (other
than fractions of Preferred Stock which are integral multiples of one one-
thousandth of a share of Preferred Stock, which may, at the election of the
Company, be evidenced by depository receipts), but in lieu thereof a cash
payment will be made, as provided in the Rights Agreement.

          No holder of this Right Certificate, as such, shall be entitled to
vote or receive dividends or be deemed for any purpose the holder of the
Preferred Stock or of any other securities of the Company which may at any time
be issuable on the exercise or exchange hereof, nor shall anything contained in
the Rights Agreement or herein be construed to confer upon the holder hereof, as
such, any of the rights of a stockholder of the Company or any right to vote for
the election of directors or upon any matter submitted to stockholders at any
meeting thereof, or to give or withhold consent to any corporate action, or to
receive notice of meetings or other actions affecting stockholders (except as
provided in the Rights Agreement) or to receive dividends or subscription
rights, or otherwise, until the Right or Rights evidenced by this Right
Certificate shall have been exercised or exchanged as provided in the Rights
Agreement.

          This Right Certificate shall not be valid or obligatory for any
purpose until it shall have been countersigned by the Rights Agent.

          WITNESS the facsimile signature of the proper officers of the Company
and its corporate seal. Dated as of _________ __, 200_.
<PAGE>

                                         DUPONT PHOTOMASKS, INC.

                                         By: ________________________________

______________
                                                  [Title]
ATTEST:

_________________________________
[Title]

Countersigned:

________________, as Rights Agent

By_______________________________
     [Title]
<PAGE>

                   Form of Reverse Side of Right Certificate

                              FORM OF ASSIGNMENT
                              ------------------

               (To be executed by the registered holder if such
               holder desires to transfer the Right Certificate)

     FOR VALUE RECEIVED ________________________ hereby sells, assigns and
transfers unto _________________________________________________________________

________________________________________________________________________________
                 (Please print name and address of transferee)

_______ Rights represented by this Right Certificate, together with all right,
title and interest therein, and does hereby irrevocably constitute and appoint
___________________________ Attorney, to transfer said Rights on the books of
the within-named Company, with full power of substitution.

Dated: _________________________

                                            _______________________________
                                                   Signature

Signature Guaranteed:

          Signatures must be guaranteed by a bank, trust company, broker, dealer
or other eligible institution participating in a recognized signature guarantee
medallion program.

 ....................................................
                                   (To be completed)

          The undersigned hereby certifies that the Rights evidenced by this
Right Certificate are not beneficially owned by, were not acquired by the
undersigned from, and are not being assigned to an Acquiring Person or an
Affiliate or Associate thereof (as defined in the Rights Agreement).

                                            _______________________________
                                                   Signature
<PAGE>

             Form of Reverse Side of Right Certificate - continued

                         FORM OF ELECTION TO PURCHASE
                         ----------------------------

                 (To be executed if holder desires to exercise
                 Rights represented by the Rights Certificate)

To DUPONT PHOTOMASKS, INC.:

          The undersigned hereby irrevocably elects to exercise ________ Rights
represented by this Right Certificate to purchase the shares of Preferred Stock
(or other securities or property) issuable upon the exercise of such Rights and
requests that certificates for such shares of Preferred Stock (or such other
securities) be issued in the name of:

___________________________________________________________________
                          (Please print name and address)

___________________________________________________________________

If such number of Rights shall not be all the Rights evidenced by this Right
Certificate, a new Right Certificate for the balance remaining of such Rights
shall be registered in the name of and delivered to:

Please insert social security
or other identifying number

___________________________________________________________________
                          (Please print name and address)

___________________________________________________________________

Dated:________________________

                                                _____________________________
                                                     Signature

       (Signature must conform to holder specified on Right Certificate)

Signature Guaranteed:

          Signature must be guaranteed by a bank, trust company, broker, dealer
or other eligible institution participating in a recognized signature guarantee
medallion program.
<PAGE>

             Form of Reverse Side of Right Certificate - continued

___________________________________________________________________
                                      (To be completed)

            The undersigned certifies that the Rights evidenced by this Right
Certificate are not beneficially owned by, and were not acquired by the
undersigned from, an Acquiring Person or an Affiliate or Associate thereof (as
defined in the Rights Agreement).

                                             _____________________________
                                                    Signature

___________________________________________________________________

                                    NOTICE
                                    ------

          The signature in the Form of Assignment or Form of Election to
Purchase, as the case may be, must conform to the name as written upon the face
of this Right Certificate in every particular, without alteration or enlargement
or any change whatsoever.

          In the event the certification set forth above in the Form of
Assignment or the Form of Election to Purchase, as the case may be, is not
completed, such Assignment or Election to Purchase will not be honored.
<PAGE>

                                                                       Exhibit C
                                                                       ---------

           UNDER CERTAIN CIRCUMSTANCES, AS SET FORTH IN THE RIGHTS
           AGREEMENT, RIGHTS OWNED BY OR TRANSFERRED TO ANY PERSON
           WHO IS OR BECOMES AN ACQUIRING PERSON (AS DEFINED IN THE
           RIGHTS AGREEMENT) AND CERTAIN TRANSFEREES THEREOF WILL
           BECOME NULL AND VOID AND WILL NO LONGER BE TRANSFERABLE.

                         SUMMARY OF RIGHTS TO PURCHASE
                         SHARES OF PREFERRED STOCK OF
                            DUPONT PHOTOMASKS, INC.

          On January 30, 2001, the Board of Directors of DuPont Photomasks, Inc.
(the "Company") declared a dividend of one preferred share purchase right (a
"Right") for each outstanding share of common stock, par value $.01 per share,
of the Company (the "Common Stock"). The dividend is payable on March 1, 2001 to
the stockholders of record as of the close of business on February 20, 2001 (the
"Record Date"). Each Right entitles the registered holder to purchase from the
Company one one-thousandth of a share of Series A Junior Participating Preferred
Stock, par value $.01 per share, of the Company (the "Preferred Stock") at a
price of $400.00 per one one-thousandth of a share of Preferred Stock (the
"Purchase Price"), subject to adjustment. The description and terms of the
Rights are set forth in a Rights Agreement dated as of January 30, 2001, as the
same may be amended from time to time (the "Rights Agreement"), between the
Company and EquiServe Trust Company, N.A., as Rights Agent (the "Rights Agent").

          The Rights are not exercisable until the "Distribution Date." Under
the Rights Agreement, a "Distribution Date" generally occurs upon the earlier of
(i) 10 days following a public announcement that a person or group of affiliated
or associated persons has become an "Acquiring Person" or (ii) 10 business days
(or such later date as may be determined by action of the Board of Directors
prior to such time as any person or group of affiliated or associated persons
becomes an Acquiring Person) following the commencement of, or announcement of
an intention to make, a tender offer or exchange offer the consummation of which
would result in the beneficial ownership by a person or group of 15% or more of
the outstanding shares of Common Stock. Except in certain situations, a person
or group of affiliated or associated persons becomes an "Acquiring Person" upon
acquiring beneficial ownership of 15% or more of the outstanding shares of
Common Stock. E.I. Du Pont de Nemours & Co. ("Du Pont") will not be deemed to be
an Acquiring Person unless and until (i) Du Pont, or any Du Pont affiliate or
associate, acquires, or announces its intention to acquire more than 33% of the
total number of shares of outstanding Common Stock (on an as converted basis),
assuming full conversion of all securities convertible into Common Stock, or
(ii) there is a change in control of Du Pont and Du Pont then beneficially owns
or tenders for 15% or more of the Company's Common Stock. Until the Distribution
Date, the Rights will be evidenced, with respect to any of the Common Stock
certificates outstanding as of the Record Date, by such Common Stock
certificates together with a copy of this Summary of Rights.

          The Rights Agreement provides that, until the Distribution Date (or
earlier expiration of the Rights), the Rights will be transferred with and only
with the Common Stock. Until the Distribution Date (or earlier expiration of the
Rights), new Common Stock certificates issued after the Record Date upon
transfer or new issuances of Common Stock will contain a notation incorporating
the Rights Agreement by reference. Until the Distribution Date (or earlier
expiration of the Rights), the surrender for transfer of any certificates for
shares of Common Stock outstanding as of the Record Date, even without such
notation or a copy of this Summary of Rights, will also constitute the transfer
of the Rights associated with the shares of Common Stock represented by such
certificate. As soon as practicable following the Distribution Date, separate
certificates evidencing the Rights ("Right Certificates") will be mailed to
holders of record of the Common Stock as of the close of business on the
Distribution Date and such separate Right Certificates alone will evidence the
Rights.

          The Rights are not exercisable until the Distribution Date. The Rights
will expire on January 30, 2011 (the "Final Expiration Date"), unless the Final
Expiration Date is advanced or extended or unless the Rights are earlier
redeemed or exchanged by the Company, in each case as described below.

          The Purchase Price payable, and the number of shares of Preferred
Stock or other securities or property issuable, upon exercise of the Rights are
subject to adjustment from time to time to prevent dilution (i) in the event of
a stock dividend on, or a subdivision, combination or reclassification of, the
Preferred Stock, (ii) upon the grant to holders of the Preferred Stock of
certain rights or warrants to subscribe for or purchase Preferred Stock
<PAGE>

at a price, or securities convertible into Preferred Stock with a conversion
price, less than the then-current market price of the Preferred Stock or (iii)
upon the distribution to holders of the Preferred Stock of evidences of
indebtedness or assets (excluding regular periodic cash dividends or dividends
payable in Preferred Stock) or of subscription rights or warrants (other than
those referred to above).

          The number of outstanding Rights is subject to adjustment in the event
of a stock dividend on the Common Stock payable in shares of Common Stock or
subdivisions, consolidations or combinations of the Common Stock occurring, in
any such case, prior to the Distribution Date.

          Shares of Preferred Stock purchasable upon exercise of the Rights will
not be redeemable. Each share of Preferred Stock will be entitled, when, as and
if declared, to a minimum preferential quarterly dividend payment of the greater
of (a) $1.00 per share, and (b) an amount equal to 1000 times the dividend
declared per share of Common Stock. In the event of liquidation, dissolution or
winding up of the Company, the holders of the Preferred Stock will be entitled
to a minimum preferential payment of the greater of (a) $1.00 per share (plus
any accrued but unpaid dividends), and (b) an amount equal to 1000 times the
payment made per share of Common Stock. Each share of Preferred Stock will have
1000 votes, voting together with the Common Stock. Finally, in the event of any
merger, consolidation or other transaction in which outstanding shares of Common
Stock are converted or exchanged, each share of Preferred Stock will be entitled
to receive 1000 times the amount received per share of Common Stock. These
rights are protected by customary antidilution provisions.

          Because of the nature of the Preferred Stock's dividend, liquidation
and voting rights, the value of the one one-thousandth interest in a share of
Preferred Stock purchasable upon exercise of each Right should approximate the
value of one share of Common Stock.

          In the event that any person or group of affiliated or associated
persons becomes an Acquiring Person, each holder of a Right, other than Rights
beneficially owned by the Acquiring Person (which will thereupon become void),
will thereafter have the right to receive upon exercise of a Right that number
of shares of Common Stock having a market value of two times the exercise price
of the Right.

          In the event that, after a person or group has become an Acquiring
Person, the Company is acquired in a merger or other business combination
transaction or 50% or more of its consolidated assets or earning power are sold,
proper provisions will be made so that each holder of a Right (other than Rights
beneficially owned by an Acquiring Person which will have become void) will
thereafter have the right to receive upon the exercise of a Right that number of
shares of common stock of the person with whom the Company has engaged in the
foregoing transaction (or its parent) that at the time of such transaction have
a market value of two times the exercise price of the Right.

          At any time after any person or group becomes an Acquiring Person and
prior to the earlier of one of the events described in the previous paragraph or
the acquisition by such Acquiring Person of 50% or more of the outstanding
shares of Common Stock, the Board of Directors of the Company may exchange the
Rights (other than Rights owned by such Acquiring Person which will have become
void), in whole or in part, for shares of Common Stock or Preferred Stock (or a
series of the Company's preferred stock having equivalent rights, preferences
and privileges), at an exchange ratio of one share of Common Stock, or a
fractional share of Preferred Stock (or other preferred stock) equivalent in
value thereto, per Right.

          With certain exceptions, no adjustment in the Purchase Price will be
required until cumulative adjustments require an adjustment of at least 1% in
such Purchase Price. No fractional shares of Preferred Stock or Common Stock
will be issued (other than fractions of Preferred Stock which are integral
multiples of one one-thousandth of a share of Preferred Stock, which may, at the
election of the Company, be evidenced by depositary receipts), and in lieu
thereof an adjustment in cash will be made based on the current market price of
the Preferred Stock or the Common Stock.

          At any time prior to the time an Acquiring Person becomes such, the
Board of Directors of the Company may redeem the Rights in whole, but not in
part, at a price of $.01 per Right (the "Redemption Price") payable, at the
option of the Company, in cash, shares of Common Stock or such other form of
consideration as the Board of Directors of the Company shall determine. The
redemption of the Rights may be made effective at such time, on such basis and
with such conditions as the Board of Directors in its sole discretion may
establish. Immediately upon any redemption of the Rights, the right to exercise
the Rights will terminate and the only right of the holders of Rights will be to
receive the Redemption Price.
<PAGE>

          For so long as the Rights are then redeemable, the Company may, except
with respect to the Redemption Price, amend the Rights Agreement in any manner.
After the Rights are no longer redeemable, the Company may, except with respect
to the Redemption Price, amend the Rights Agreement in any manner that does not
adversely affect the interests of holders of the Rights.

          Until a Right is exercised or exchanged, the holder thereof, as such,
will have no rights as a stockholder of the Company, including, without
limitation, the right to vote or to receive dividends.

          A copy of the Rights Agreement has been filed with the Securities and
Exchange Commission as an Exhibit to a Registration Statement on Form 8-A dated
January 30,, 2001. A copy of the Rights Agreement is available free of charge
from the Company. This summary description of the Rights does not purport to be
complete and is qualified in its entirety by reference to the Rights Agreement,
as the same may be amended from time to time, which is hereby incorporated
herein by reference.Prepared by MERRILL CORPORATION www.edgaradvantage.com

Use these links to rapidly review the document

  TABLE OF CONTENTS

Exhibit T3C  

CRIIMI MAE Inc.  

[11.75% Series A] [20% Series B] SENIOR SECURED NOTES DUE [2006]
[2007]  

INDENTURE  

Dated as of      , 2001  

[Wells Fargo Bank, N.A.],
  as Trustee 

  

 
 

CROSS-REFERENCE TABLE*    
  

	Trust Indenture Act Section
 
	 	Indenture Section

	310 (a)(1)	 	7.10
	(a)(2)	 	7.10
	(a)(3)	 	N.A.
	(a)(4)	 	N.A.
	(a)(5)	 	7.10
	(b)	 	7.10
	(c)	 	N.A.
	311(a)	 	7.11
	(b)	 	7.11
	(c)	 	N.A.
	312	 	2.05
	312 (a)	 	2.05
	(b)	 	12.03
	(c)	 	12.03
	313(a)	 	7.06
	(b)	 	12.03
	(b)(2)	 	7.06
	(c)	 	7.06; 12.02
	314(a)	 	4.03
	3.14(a)(4)	 	11.02; 12.05
	(b)	 	10.02
	(c)(1)	 	N.A.
	(c)(2)	 	N.A.
	(c)(3)	 	N.A.
	(d)	 	10.05
	(e)	 	12.05
	(f)	 	N.A.
	315 (a)	 	N.A.
	(b)	 	N.A.
	(A)(c)	 	N.A.
	(d)	 	N.A.
	(e)	 	N.A.
	316 (a)(last sentence)	 	N.A.
	(a)(1)(A)	 	N.A.
	(a)(1)(B)	 	N.A.
	(a)(2)	 	N.A.
	(b)	 	N.A.
	(B)(c)	 	N.A.
	317 (a)(1)	 	N.A.
	(a)(2)	 	N.A.
	(b)	 	N.A.
	318 (a)	 	N.A.
	(b)	 	N.A.
	(c)	 	12.01

    N.A.
means not applicable. 

	*
	This
Cross-Reference Table is not part of the Indenture. 

2

  

 

TABLE OF CONTENTS    
  

    
 

	 
	 	 

	ARTICLE 1.	 	DEFINITIONS AND INCORPORATION BY REFERENCE
	 	SECTION 1.01.	 	  Definitions
	 	SECTION 1.02.	 	  Other Definitions
	 	SECTION 1.03.	 	  Provisions of the TIA
	 	SECTION 1.04.	 	  Rules Of Construction
	ARTICLE 2.	 	THE NOTES
	 	SECTION 2.01.	 	  Form And Dating
	 	SECTION 2.02.	 	  Execution And Authentication
	 	SECTION 2.03.	 	  Registrar And Paying Agent
	 	SECTION 2.04.	 	  Paying Agent To Hold Money In Trust
	 	SECTION 2.05.	 	  Holder Lists
	 	SECTION 2.06.	 	  Transfer And Exchange
	 	SECTION 2.07.	 	  Replacement Notes
	 	SECTION 2.08.	 	  Outstanding Notes
	 	SECTION 2.09.	 	  Treasury Notes
	 	SECTION 2.10.	 	  Temporary Notes
	 	SECTION 2.11.	 	  Cancellation
	 	SECTION 2.12.	 	  Defaulted Interest
	ARTICLE 3.	 	REDEMPTION AND PREPAYMENT
	 	SECTION 3.01.	 	  Notices To Trustee
	 	SECTION 3.02.	 	  Selection Of Notes To Be Redeemed
	 	SECTION 3.03.	 	  Notice Of Redemption
	 	SECTION 3.04.	 	  Effect Of Notice Of Redemption
	 	SECTION 3.05.	 	  Deposit Of Redemption Price
	 	SECTION 3.06.	 	  Notes Redeemed In Part
	 	SECTION 3.07.	 	  Optional Redemption
	 	SECTION 3.08.	 	  Mandatory Redemption; Repurchase at Option of Holder
	 	SECTION 3.09.	 	  Offer To Purchase By Application Of Excess Proceeds
	ARTICLE 4.	 	COVENANTS
	 	SECTION 4.01.	 	  Payment Of Notes
	 	SECTION 4.02.	 	  Maintenance Of Office Or Agency
	 	SECTION 4.03.	 	  Reports
	 	SECTION 4.04.	 	  Compliance Certificate
	 	SECTION 4.05.	 	  Taxes
	 	SECTION 4.06.	 	  Stay, Extension And Usury Laws
	 	SECTION 4.07.	 	  Restricted Payments
	 	SECTION 4.08.	 	  Investments
	 	SECTION 4.09.	 	  Incurrence Of Indebtedness
	 	SECTION 4.10.	 	  Asset Sales
	 	SECTION 4.11.	 	  Transactions With Affiliates
	 	SECTION 4.12.	 	  Liens
	 	SECTION 4.13.	 	  Business Activities
	 	SECTION 4.14.	 	  Corporate Existence
	 	SECTION 4.15.	 	  Offer To Repurchase Upon Change Of Control
	 	SECTION 4.16.	 	  Minimum Excess Cash Flow
	 	SECTION 4.17.	 	  SPP Nonpayment Event

i

 

	ARTICLE 5.	 	SUCCESSORS
	 	SECTION 5.01.	 	  Merger, Consolidation Or Sale Of Assets
	 	SECTION 5.02.	 	  Successor Corporation Substituted
	ARTICLE 6.	 	DEFAULTS AND REMEDIES
	 	SECTION 6.01.	 	  Events Of Default
	 	SECTION 6.02.	 	  Acceleration
	 	SECTION 6.03.	 	  Other Remedies
	 	SECTION 6.04.	 	  Waiver Of Past Defaults
	 	SECTION 6.05.	 	  Control By Majority
	 	SECTION 6.06.	 	  Limitation On Suits
	 	SECTION 6.07.	 	  Rights Of Holders Of Notes To Receive Payment
	 	SECTION 6.08.	 	  Collection Suit By Trustee
	 	SECTION 6.09.	 	  Trustee May File Proofs Of Claim
	 	SECTION 6.10.	 	  Priorities
	 	SECTION 6.11.	 	  Undertaking For Costs
	ARTICLE 7.	 	TRUSTEE
	 	SECTION 7.01.	 	  Duties Of Trustee
	 	SECTION 7.02.	 	  Rights Of Trustee
	 	SECTION 7.03.	 	  Individual Rights Of Trustee
	 	SECTION 7.04.	 	  Trustee's Disclaimer
	 	SECTION 7.05.	 	  Notice Of Defaults
	 	SECTION 7.06.	 	  Reports By Trustee To Holders Of The Notes
	 	SECTION 7.07.	 	  Compensation And Indemnity
	 	SECTION 7.08.	 	  Replacement Of Trustee
	 	SECTION 7.09.	 	  Successor Trustee By Merger, Etc
	 	SECTION 7.10.	 	  Eligibility; Disqualification
	 	SECTION 7.11.	 	  Preferential Collection Of Claims Against Company
	ARTICLE 8.	 	LEGAL DEFEASANCE AND COVENANT DEFEASANCE
	 	SECTION 8.01.	 	  Option To Effect Legal Defeasance Or Covenant Defeasance
	 	SECTION 8.02.	 	  Legal Defeasance And Discharge
	 	SECTION 8.03.	 	  Covenant Defeasance
	 	SECTION 8.04.	 	  Conditions To Legal Or Covenant Defeasance
	 	SECTION 8.05.	 	  Deposited Money And Government Securities To Be Held In Trust, Other Miscellaneous Provisions
	 	SECTION 8.06.	 	  Repayment To Company
	 	SECTION 8.07.	 	  Reinstatement
	ARTICLE 9.	 	AMENDMENT, SUPPLEMENT AND WAIVER
	 	SECTION 9.01.	 	  Without Consent Of Holders Of Notes
	 	SECTION 9.02.	 	  With Consent Of Holders Of Notes
	 	SECTION 9.03.	 	  Compliance With Trust Indenture Act
	 	SECTION 9.04.	 	  Revocation And Effect Of Consents
	 	SECTION 9.05.	 	  Notation On Or Exchange Of Notes
	 	SECTION 9.06.	 	  Trustee To Sign Amendments, Etc
	ARTICLE 10.	 	COLLATERAL AND SECURITY
	 	SECTION 10.01.	 	  Collateral Agreements
	 	SECTION 10.02.	 	  Recording and Opinions
	 	SECTION 10.03.	 	  Release of Collateral
	 	SECTION 10.04.	 	  Certificates of the Company

ii

 

	 	SECTION 10.05.	 	  Certificates of the Trustee
	 	SECTION 10.06.	 	  Authorization of Actions to be Taken by the Trustee Under the Collateral Agreements
	 	SECTION 10.07.	 	  Authorization of Receipt of Funds by the Trustee Under the Collateral Agreements
	 	SECTION 10.08.	 	  Termination of Security Interest
	ARTICLE 11.	 	SATISFACTION AND DISCHARGE
	 	SECTION 11.01.	 	  Satisfaction And Discharge Of Indenture
	 	SECTION 11.02.	 	  Application Of Trust Money
	ARTICLE 12.	 	MISCELLANEOUS
	 	SECTION 12.01.	 	  Trust Indenture Act Controls
	 	SECTION 12.02.	 	  Notices
	 	SECTION 12.03.	 	  Communication By Holders Of Notes With Other Holders Of Notes
	 	SECTION 12.04.	 	  Certificate And Opinion As To Conditions Precedent
	 	SECTION 12.05.	 	  Statements Required In Certificate Or Opinion
	 	SECTION 12.06.	 	  Rules By Trustee And Agents
	 	SECTION 12.07.	 	  No Personal Liability Of Directors, Officers, Employees And Stockholders
	 	SECTION 12.08.	 	  Governing Law
	 	SECTION 12.09.	 	  No Adverse Interpretation Of Other Agreements
	 	SECTION 12.10.	 	  Successors
	 	SECTION 12.11.	 	  Severability
	 	SECTION 12.12.	 	  Counterpart Originals
	 	SECTION 12.13.	 	  Table Of Contents, Headings, Etc.
	
Exhibits and Schedules
	

Exhibit A	
 	

Form of Note
	Exhibit B	 	Form of Articles Supplementary to Articles of Incorporation in respect of Noteholder Preferred Stock
	Schedule 1.01(a)	 	Additional Collateral Agreements
	Schedule 1.01(b)	 	Unrestricted Subsidiaries as of the Issue Date
	Schedule 4.16	 	Minimum Excess Cash Flow
	Schedule 10.02	 	Required Filings

iii

  

    INDENTURE, dated as of            , 2001, by and between CRIIMI MAE Inc., a Maryland corporation (the
"Company"), and [Wells Fargo Bank, N.A.], as trustee (the
"Trustee"). 

    The
Company and the Trustee agree as follows for the benefit of each other and for the equal and ratable benefit of the Holders of the [11.75%
Series A] [20% Series B] Senior Notes due
[2006] [2007] (the
"Notes"): 

 
 

ARTICLE 1.
  DEFINITIONS AND INCORPORATION BY REFERENCE    
  

 
  Section 1.01.  Definitions.    
  

    "Actual Real Estate Losses" means            . [cumulative since the
Issue Date] [currently being discussed with Merrill Lynch] 

    "Additional Notes" means additional Definitive Notes issued (or increases in the principal amount of an outstanding Global Note
incurred) as payment-in-kind of interest pursuant to Section 1 of the Notes. 

    "Affiliate" of any specified Person means any other Person directly or indirectly controlling or controlled by or under direct or
indirect common control with such specified Person. For purposes of this definition, "control" (including, with correlative meanings, the terms "controlling," "controlled by" and "under common control
with"), as used with respect to any Person, shall mean the possession, directly or indirectly, of the power to direct or cause the direction of the management or policies of such Person, whether
through the ownership of voting securities, by agreement or otherwise; provided that beneficial ownership of 10% or more of the Voting Stock of a Person shall be deemed to be control. 

    "Agent" means any Registrar, Paying Agent or co-registrar. 

    "Aim Fund Proceeds" has the meaning assigned to such term in the Security Agreement. 

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

    "Asset Sale" means the sale, lease, conveyance or other disposition of any assets (including, without limitation, by way of a sale and
leaseback) other than dispositions of assets in the ordinary course of business (provided that the sale, lease, conveyance or other disposition of all or substantially all of the assets of the Company
and its Restricted Subsidiaries taken as a whole will be governed by Section 5.01 hereof and not by Section 4.10 hereof), whether in a single transaction or a series of related
transactions, for net proceeds in excess of $3.0 million. Notwithstanding the foregoing, the following items shall not constitute Asset Sales: (i) a disposition of assets by the Company
to a Restricted Subsidiary or by a Restricted Subsidiary to the Company or to another Restricted Subsidiary, (ii) a Restricted Payment that is not prohibited by Section 4.07 hereof,
(iii) the grant of any Lien permitted to be incurred under this Indenture (and any foreclosure thereon), (iv) a disposition of any asset that constitutes proceeds of, or was purchased
with proceeds of, an issuance of Equity Interests consummated after the Issue Date, (v) dispositions made in connection with the CMSLP Reorganization, and (vi) dispositions of Trading
Assets. 

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

    "Board of Directors" means, with respect to any Person, the board of directors, managers or trustees or other similar governing board
of such Person, or any authorized committee of the Board of 

1

 

Directors, and, if not otherwise specified or inconsistent in the context, means the board of directors of the Company. 

    "Board Resolution" means, as to any Person, a copy of a resolution certified pursuant to an Officers' Certificate to have been duly
adopted by the Board of Directors of such Person, and to be in full force and effect, and if required hereunder, delivered to the Trustee. 

    "Business Day" means any day other than a Legal Holiday. 

    "Capital Lease Obligation" means, at the time any determination thereof is to be made, the amount of the liability in respect of a
capital lease that would at such time be required to be capitalized on a balance sheet in accordance with GAAP. 

    "Capital Stock" means, with respect to any Person, any and all shares, interests, participations, rights or other equivalents (however
designated) of corporate stock in such Person. 

    "Cash Equivalents" means (i) United States dollars, (ii) securities issued or directly and fully guaranteed or insured by
the United States government or any agency or instrumentality thereof (provided that the full faith and credit of the United States is pledged in support thereof) having maturities of not more than
six months from the date of acquisition, (iii) certificates of deposit and eurodollar time deposits with maturities of six months or less from the date of acquisition, demand deposits, bankers'
acceptances with maturities not exceeding six months and overnight bank deposits, in each case with any lender party to the Senior Credit Facility or with any domestic commercial bank having capital
and surplus in excess of $500 million and a Thompson Bank Watch Rating of "B" or better, or foreign branches thereof, having capital and surplus in excess of $500.0 million or any
commercial bank of any other country that is a member of the Organization for Economic Cooperation and Development and has total assets in excess of $500.0 million and has one of the two
highest ratings available from Moody's Investors Service, Inc. or Standard & Poor's Ratings Group, (iv) repurchase obligations with a term of not more than seven days for
underlying securities of the types described in clauses (ii) and (iii) above entered into with any financial institution meeting the qualifications specified in clause (iii)
above, (v) commercial paper having the highest rating obtainable from Moody's Investors Service, Inc. or Standard & Poor's Ratings Group and in each case maturing within six
months after the date of acquisition and (vi) money market funds the assets of which constitute Cash Equivalents of the kinds described in clauses (i)-(v) of this definition. 

    "CBO-2 Bonds" has the meaning assigned to such term in the Security Agreement. 

    "CCR1 Pledged Stock" has the meaning assigned to such term in the Security Agreement. 

    "Change of Control" means the consummation of any transaction (including, without limitation, any merger or consolidation) the result
of which is that any "person" (as defined in Section 13(d)(3) of the Exchange Act), other than a Permitted Holder, becomes the "beneficial owner" (as such term is defined in
Rule 13d-3 and Rule 13d-5 under the Exchange Act, except that a person shall be deemed to
have "beneficial ownership" of all securities that such person has the right to acquire, whether such right is currently exercisable or is exercisable only upon the occurrence of a subsequent
condition), directly or indirectly, of more than 50% of the Voting Stock of the Company (measured by voting power rather than number of shares). 

    "CMBS" means commercial mortgage-backed securities. 

    "CMBS Corp. Pledged Stock" has the meaning assigned to such term in the Security Agreement. 

    "CMSLP" means CRIIMI MAE Services Limited Partnership, a Maryland limited partnership. 

    "CMSLP Reorganization" means any reorganization or restructuring of CMSLP or the Company's direct or indirect ownership interests in
CMSLP, whether by merger, transfer of assets, transfer of Equity Interests or otherwise, that results in the Company continuing to own in the aggregate, directly 

2

 

or indirectly, an equity interest in CMSLP economically equivalent to the equity interest in CMSLP that it owns, directly or indirectly, as of the Issue Date. [This
is necessary for REIT purposes.] 

    "Collateral" means [the First Lien Collateral and] the Second
Lien Collateral [and the Third Lien Collateral]. 

    "Collateral Agent" means            . 

    "Collateral Agreements" means the Security Agreement, the Intercreditor Agreement, and the other agreements and documents, if any,
listed on Schedule 1.01(a). 

    "Company" means CRIIMI MAE Inc., and any and all successors thereto. 

    "Consolidated Cash Flow" means, for any period, the Gross Cash Flow of the Company and its Restricted Subsidiaries for such period
minus the sum of (i) any cash flow received in respect of Miscellaneous Collateral, and (ii) the general, administrative and other operating expenses of the Company and its Restricted
Subsidiaries on a consolidated basis to the extent paid or accrued during such period. 

    "Corporate Trust Office of the Trustee" shall be at the address of the Trustee specified in Section 12.02 hereof or such other
address as to which the Trustee may give notice to the Company. 

    "Custodian" means any receiver, trustee, assignee, liquidator or similar official under any Bankruptcy Law. 

    "Default" means any event that is or with the passage of time or the giving of notice or both would be an Event of Default. 

    "Definitive Note" means a certificated Note registered in the name of the Holder thereof and issued in accordance with
Section 2.06 hereof, in the form of Exhibit A hereto except that such Note shall not bear the Global Note Legend and shall not have the
"Schedule of Exchanges of Interests in the Global Note" attached thereto. 

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

    "Disputed Claims Notes" means additional Definitive Notes issued (or increases in the principal amount of an outstanding Global Note
incurred) after the Issue Date pursuant to Section V.H.5 of the Reorganization Plan. Disputed Claims Notes shall be dated the Issue Date and treated for all purposes as if issued on such date,
except that if a Disputed Claims Note is issued after the first Interest Payment Date, cash interest that would have been due and payable on such Disputed Claims Note if such Disputed Claims Note had
actually been issued on the Issue Date shall instead be due and payable on the next Interest Payment Date, and such due and payable but unpaid interest (i) shall not give rise to a Default or
Event of Default hereunder, and (ii) shall not bear interest. [Series B only] 

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

    "Excess Cash Flow" means, for any period, Consolidated Cash Flow minus the sum of (i) Interest Expense, and (ii) cash
dividends paid or payable to holders of Equity Interests in the Company. 

    "Exchange Act" means the Securities Exchange Act of 1934, as amended. 

    "Existing Indebtedness" means Indebtedness of the Company and its Restricted Subsidiaries (other than Indebtedness under the Senior
Credit Facility) in existence or incurred on the Issue Date, including without limitation (i) the Series [B]
[A] Notes, and (ii) the Merrill/GACC Debt. 

3

 

    "First Lien Collateral" means the Miscellaneous Collateral, the CCR1 Pledged Stock, the QRS 1, Inc. Pledged Stock and the Nomura
Bond. [Series A only] 

    "GAAP" means generally accepted accounting principles set forth in the opinions and pronouncements of the Accounting Principles Board
of the American Institute of Certified Public Accountants and statements and pronouncements of the Financial Accounting Standards Board or in such other statements by such other entity as have been
approved by a significant segment of the accounting profession, which are in effect on the Issue Date. 

    "Global Note Legend" means the legend set forth in Section 2.06(f), which is required to be placed on all Global Notes issued
under this Indenture. 

    "Global Notes" means, individually and collectively, each of the Global Notes in the form of  Exhibit A hereto issued in accordance with Section 2.01 or
2.06 hereof. 

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

    "Gross Cash Flow" means, for any period, the aggregate sum, for the Company and its Restricted Subsidiaries, of (i) cash flow of
any kind or character (but excluding (A) distributions, if any, from CMSLP, and (B) cash flows in respect of Match Funded Assets), and (ii) without duplication, accruals on
securities held (other than Match Funded Assets), as long as payment on such accruals is not delinquent by more than 45 days from scheduled receipt. 

    "Guarantee" means a guarantee (other than by endorsement of negotiable instruments for collection in the ordinary course of business),
direct or indirect, in any manner (including, without limitation, by way of a pledge of assets or through letters of credit or reimbursement agreements in respect thereof), of all or any part of any
Indebtedness. 

    "Holder" means a Person in whose name a Note is registered. 

    "Indebtedness" means, with respect to any Person, (i) any indebtedness of such Person, whether or not contingent, in respect of
borrowed money or evidenced by bonds, notes, debentures or similar instruments or letters of credit (or reimbursement agreements in respect thereof) or banker's acceptances or representing Capital
Lease Obligations or the balance deferred and unpaid of the purchase price of any property (except any such balance that constitutes an accrued expense or trade payable), (ii) all Indebtedness
of others secured by a Lien on any asset of such Person (whether or not such Indebtedness is assumed by such Person) (provided that in the case of any such Lien, if the Indebtedness so secured has not
been assumed by such Person or is not otherwise such Person's legal liability, such Indebtedness shall be deemed to be in a maximum amount equal to the fair market value of such assets (which, if such
value is in excess of $5.0 million, shall be determined in good faith by the Board of Directors of such Person, which determination shall be evidenced by a Board Resolution)), and
(iii) to the extent not otherwise included, the Guarantee by such Person of any Indebtedness of any other Person (to the extent of such Guarantee). The amount of any Indebtedness outstanding as
of any date shall be (A) the accreted value thereof, in the case of any Indebtedness issued with original issue discount, and (B) the unpaid principal amount thereof, in the case of any
other Indebtedness. "Indebtedness" shall not include liabilities with respect to deposits and other liabilities owed in the ordinary course of business in connection with servicing obligations. 

    "Indenture" means this Indenture, as amended or supplemented from time to time. 

    "Indirect Participant" means a Person who holds a beneficial interest in a Global Note through a Participant. 

    "Insured Mortgage Proceeds" has the meaning assigned to such term in the Security Agreement. 

4

 

    "Intercreditor Agreement" means the Intercreditor and Collateral Agency Agreement among the Company, the Collateral Agent, the Repo
Purchaser [and the other parties thereto], as amended or supplemented from time to time. 

    "Interest Coverage Ratio" means with respect to any Person for any period, the ratio of the Consolidated Cash Flow of such Person and
its Restricted Subsidiaries for such period to the Interest Expense of such Person and its Restricted Subsidiaries for such period. In the event that the referent Person or any of its Restricted
Subsidiaries incurs or repays any Indebtedness (other than Match Funded Indebtedness) subsequent to the commencement of the period (the "Reference
Period") for which the Interest Coverage Ratio is being calculated but prior to the date on which the event for which the calculation of the Interest Coverage Ratio is made
(the "Calculation Date"), then the Interest Coverage Ratio shall be calculated giving pro forma effect to such incurrence or repayment, as if the same
had occurred at the beginning of the applicable Reference Period. In addition, for purposes of making the computation referred to above, (i) acquisitions that have been made by the Company or
any of its Restricted Subsidiaries, including through mergers or consolidations and including any related financing transactions, during the Reference Period or subsequent to the Reference Period and
on or prior to the Calculation Date shall be deemed to have occurred on the first day of the Reference Period, (ii) the Consolidated Cash Flow attributable to discontinued operations, as
determined in accordance with GAAP, and operations or businesses disposed of prior to the Calculation Date, shall be excluded, and (iii) the Interest Expense attributable to discontinued
operations, as determined in accordance with GAAP, and operations or businesses disposed of prior to the Calculation Date, shall be excluded, but only to the extent that the obligations giving rise to
such Interest Expense will not be obligations of the referent Person or any of its Restricted Subsidiaries following the Calculation Date. 

    "Interest Expense" means, with respect to any Person for any period, the sum, without duplication, of the consolidated interest expense
of such Person and its Restricted Subsidiaries in respect of Indebtedness (other than Match Funded Indebtedness) to the extent paid or payable in cash during such period. For purposes of this
definition, "Interest Expense" shall specifically exclude, without limitation, any cash loan extension fees, interest in-kind on the principal amount of the
[Series B] Notes at the rate of 7% per annum (until maturity thereof), and amortization of deferred financing costs.
Additionally, Interest Expense shall exclude any dividends accrued or paid on preferred shares that are required to be recognized as interest expense under GAAP. 

    "Interest Payment Date" means each Interest Payment Date as specified in Section 1(b) of the form of Note attached hereto as  Exhibit A. 

    "Interest Strip Certificates" has the meaning assigned to such term in the Security Agreement. 

    "Issue Date" means the closing date for the original issuance of the Notes under this Indenture. 

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

    "Lien" means, with respect to any asset, any mortgage, lien, pledge, charge, assignment, security interest, hypothecation, right to
sell or direct the sale of assets of another Person or any other encumbrance of any kind or character, or any other transaction (regardless of its form) having substantially the same economic effect
as any of the foregoing, in respect of such asset, whether or not filed, recorded or otherwise perfected under applicable law (including, without limitation, any conditional sale or other title
retention agreement, any lease in the nature thereof, any option, repurchase agreement or other agreement to sell or give a security interest in such asset which is intended to constitute or create a
lien or the economic effect thereof, and any filing of or agreement to 

5

 

give any financing statement under the Uniform Commercial Code (or equivalent statutes) of any jurisdiction). 

    "Loan Fees" has the meaning assigned to such term in the form of Note attached hereto as  Exhibit A. 

    "Mandatory Amortization Payments" has the meaning assigned to such term in Section 3.08(d).
[Series A only] 

    "Match Funded Assets" has the meaning assigned to such term in the definition of the term "Match Funded Indebtedness." 

    "Match Funded Indebtedness" means non-recourse Indebtedness where the principal amortization and maturity of such
Indebtedness are based upon the aggregate principal amortization and maturity of a like or greater amount of assets (the "Match Funded Assets"). 

    "Merrill/GACC Assets" means the CMBS Corp. Pledged Stock and the CBO-2 Bonds. 

    "Merrill/GACC Debt" means all Obligations of the Company arising under that certain Master Repurchase Agreement, as supplemented by
Annex I thereto, each dated as of the Issue Date and between the Company, as seller, and the Repo Purchaser, as buyer, and all related collateral documents, instruments and agreements, as each may be
amended, restated, supplemented, renewed, refinanced, replaced or otherwise modified from time to time. 

    "Mezzanine Notes" has the meaning assigned to such term in the Security Agreement. 

    "Mezzanine Notes Collateral" has the meaning assigned to such term in the Security Agreement. 

    "Miscellaneous Collateral" means, collectively, (i) the Aim Fund Proceeds, (ii) the Interest Strip Certificates,
(iii) the Insured Mortgage Proceeds, (iv) the Mezzanine Notes, (v) the Mezzanine Notes Collateral, and (vi) the Partnership Interests. 

    "Miscellaneous Collateral Cashflow" means the Aim Fund Proceeds, the Insured Mortgage Proceeds and all cash receipts and cash income of
any kind or character (including without limitation, interest and return of principal, to the extent applicable) arising out of the Mezzanine Notes, the Partnership Interests and the Interest Strip
Certificates. 

    "Net Equity Proceeds" means the aggregate cash proceeds received by the Company in respect of any issuance of Equity Interests after
the Issue Date, net of (i) the costs relating to such issuance (including, without limitation, legal, accounting and investment banking fees and expenses), (ii) taxes paid or payable as
a result thereof, if any, and (iii) amounts held as a reserve, in accordance with GAAP, against any liabilities associated with such issuance. 

    "Net Proceeds" means the aggregate cash proceeds received by the Company or any of its Restricted Subsidiaries in respect of any Asset
Sale, net of (i) the costs relating to such Asset Sale (including,
without limitation, legal, accounting and investment banking fees and expenses, and sales commissions attributable to such Asset Sale), (ii) any relocation expenses incurred as a result
thereof, (iii) taxes paid or payable as a result thereof, (iv) amounts required to be applied to the repayment of Indebtedness secured by a Lien on the asset or assets that were the
subject of such Asset Sale (other than (A) Liens in favor of the Collateral Agent for the benefit of the Holders and (B) Liens pari passu with, or subordinate or junior to, Liens in
favor of the Collateral Agent for the benefit of the Holders), (v) any reserve for adjustment in respect of the sale price of such asset or assets established in accordance with GAAP,
(vi) all distributions and other payments required to be made pursuant to customary partnership agreements, limited liability company organizational documents, joint venture agreements or
similar agreements entered into in the ordinary course of business to minority interest holders in Restricted Subsidiaries as a result of such Asset Sale, and (vii) appropriate amounts to be
provided by the seller as a reserve, in accordance with GAAP, against any liabilities associated with the assets disposed of in such Asset Sale and retained by the Company or any Restricted Subsidiary
after such Asset Sale. 

6

  

    "New Preferred Equity Interest" means any Preferred Equity Interest issued after the Issue Date. 

    "Nomura Bond" has the meaning assigned to such term in the Security Agreement. 

    "Non-Recourse Debt" means Indebtedness where the only recourse of the lender in the event of a default in respect of such
Indebtedness is to the collateral securing such Indebtedness (other than recourse arising out of certain wrongful acts or omissions, environmental liabilities, and other customary exclusions from the
scope of so-called "non-recourse" provisions). 

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

    "Noteholder Preferred Stock" means the series of preferred stock of the Company having the rights and privileges set forth in  Exhibit B attached hereto.

    "Notes" has the meaning assigned to it in the preamble to this Indenture. 

    "Obligations" means any principal, interest, penalties, fees, indemnifications, reimbursements, damages and other liabilities payable
under the documentation governing any Indebtedness. 

    "Officer" means, with respect to any Person, the Chairman of the Board, the Chief Executive Officer, the President, the Chief Operating
Officer, the Chief Financial Officer, the Treasurer, any Assistant Treasurer, the Controller, the Secretary or any Vice-President of such Person. 

    "Officers' Certificate" means a certificate signed on behalf of the Company by two Officers of the Company, one of whom must be the
principal executive officer, the principal financial officer, the treasurer or the principal accounting officer of the Company, that meets the requirements of Section 12.05 hereof. 

    "Opinion of Counsel" means an opinion from legal counsel who is reasonably acceptable to the Trustee, that meets the requirements of
Section 12.05 hereof. The counsel may be an employee of or counsel to the Company, any Subsidiary of the Company or the Trustee. 

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

    "Partnership Interests" has the meaning assigned to such term in the Security Agreement. 

    "Permitted Business" means the business conducted by the Company and its Subsidiaries on the Issue Date and all other activities that
may be conducted without the loss of REIT Status (including, without limitation, (i) acquiring, developing, selling, owning, managing, operating and leasing real estate, (ii) acquiring,
originating, owning, servicing, collecting, securitizing and resecuritizing real estate mortgages and related loans and CMBS and RMBS, and (iii) investing, reinvesting, owning, holding or
trading in real estate and mortgage-related securities, and securities of Persons engaged primarily in real estate or mortgage-related activities) and other activities related to or arising out of any
of the foregoing. 

    "Permitted Holders" means            . 

    "Permitted Liens" means (i) Liens securing Indebtedness under the Senior Credit Facility; (ii) Liens in favor of the
Company or a Restricted Subsidiary; (iii) Liens on property of a Person existing at the time such Person is merged into or consolidated with the Company or any Restricted Subsidiary of the
Company or becomes a Restricted Subsidiary of the Company; provided that such Liens were in existence prior to the contemplation of such transaction and do not extend to any assets other than those of
such Person; (iv) Liens on property existing at the time of acquisition thereof by the Company or any Restricted Subsidiary of the Company, provided that such Liens were in existence prior to
the contemplation of such acquisition; (v) Landlord's Liens or Liens to secure the performance of statutory obligations, surety or appeal bonds, performance bonds or other obligations of a like
nature incurred in the ordinary course of business; (vi) (A) Liens to secure Indebtedness permitted by Section 4.09(a) or 

7

 

clauses (iv), (v) or (vii) of Section 4.09(b) hereof, and (B) Liens to secure a guarantee permitted under Section 4.09(b)(vi) if the underlying Indebtedness
referred to in such clause is secured by a Lien permitted under this Indenture; (vii) Liens existing or incurred on the Issue Date; (viii) Liens for taxes, assessments or governmental
charges or claims that are not yet delinquent or that are being contested
in good faith by appropriate proceedings promptly instituted and diligently concluded, provided that any reserve or other appropriate provision as shall be required in conformity with GAAP shall have
been made therefor; (ix) Liens incurred in the ordinary course of business of the Company or any Restricted Subsidiary of the Company with respect to obligations that do not in the aggregate
exceed $3.0 million at any one time outstanding and that (A) are not incurred in connection with the borrowing of money or the obtaining of advances or credit (other than trade credit in
the ordinary course of business) and (B) do not in the aggregate materially detract from the value of the property or materially impair the use thereof in the operation of business by the
Company or such Subsidiary; (x) Liens securing Permitted Refinancing Indebtedness which is incurred to refinance any Indebtedness which has been secured by a Lien permitted under this Indenture
and which has been incurred in accordance with the provisions of this Indenture, provided, however, that such Liens (A) are not materially less favorable to the Holders than the Liens in
respect of the Indebtedness being refinanced and (B) do not extend to or cover any property or assets of the Company or any of its Restricted Subsidiaries not securing the Indebtedness so
refinanced (other than additions, accessions, products, proceeds and improvements to such property or assets); (xi) Liens arising under this Indenture in favor of the Trustee for its own
benefit and similar Liens in favor of other trustees arising under instruments governing Indebtedness permitted to be incurred under this Indenture; (xii) judgment Liens not giving rise to an
Event of Default so long as such Lien is adequately bonded and any appropriate legal proceedings which may have been duly initiated for the review of such judgment shall not have finally terminated or
other period within which such proceedings may be initiated shall not have expired; (xiii) Liens resulting from the deposit of funds or government securities in trust for the purpose of
discharging or defeasing Indebtedness of the Company and its Restricted Subsidiaries; (xiv) setoff, chargeback and other rights of depository and collecting banks and other regulated financial
institutions with respect to money or instruments of the Company or its Restricted Subsidiaries on deposit with or in the possession of such institutions; (xv) pledges or deposits made in the
ordinary course of business in connection with workers' compensation, unemployment insurance and other social security legislation; (xvi) Liens securing the Notes; (xvii) Liens securing
the Series [B] [A] Notes; and (xviii) Liens securing the Merrill/GACC Debt. 

    "Permitted Refinancing Indebtedness" means Indebtedness of the Company or any of its Restricted Subsidiaries issued in exchange for, or
the net proceeds of which are used to extend, refinance, renew, replace, defease or refund, in whole or in part, other Indebtedness (the "Old
Indebtedness") of the Company or any of its Restricted Subsidiaries (other than intercompany Indebtedness); provided that: (i) such Permitted Refinancing Indebtedness
has a Weighted Average Life to Maturity equal to or greater than the Weighted Average Life to Maturity of the Old Indebtedness; (ii) the mandatory annual principal amortization payments on such
Permitted Refinancing Indebtedness are less than or equal to the mandatory annual principal amortization payments on the Old Indebtedness; (iii) the mandatory annual cash interest expense on
such Permitted Refinancing Indebtedness is not, in the opinion of the Company, materially greater than the mandatory annual cash interest expense on the Old Indebtedness; (iv) such Permitted
Refinancing Indebtedness does not provide for greater recourse to the Company and its Restricted Subsidiaries taken as a whole than the Old Indebtedness; and (v) any Lien securing such
Permitted Refinancing Indebtedness is not prohibited by Section 4.12 hereof. 

    "Person" means any individual, corporation, partnership, joint venture, association, joint-stock company, trust, unincorporated
organization or government or agency or political subdivision thereof (including
any subdivision or ongoing business of any such entity or substantially all of the assets of any such entity, subdivision or business). 

8

 

    "Preferred Equity Interest" means any Equity Interest of a Person, however designated, which entitles the holder thereof to a
preference with respect to dividends, distributions or liquidation proceeds of such Person over the holders of any other Equity Interest issued by such Person. 

    "Projected Real Estate Losses" means            . 

    "QRS 1, Inc. Pledged Stock" has the meaning assigned to such term in the Security Agreement. 

    "REIT Status" means qualification as a "real estate investment trust," as defined in Sections 856 through 860 of the Internal Revenue
Code of 1986, as amended. 

    "Reorganization Plan" means the Debtor's Third Amended Joint Plan of Reorganization of the Company and certain of its Subsidiaries, as
confirmed by the United States Bankruptcy Court, District of Maryland, Greenbelt Division. 

    "Repo Purchaser" means [Merrill Lynch
International, Inc.] and its successors and assigns under the various agreements, documents and instruments governing the Merrill/GACC Debt. 

    "Responsible Officer," when used with respect to the Trustee, means any officer within the Corporate Trust Administration of the
Trustee (or any successor group of the Trustee) or any other officer of the Trustee customarily performing functions similar to those performed by any of the above designated officers and also means,
with respect to a particular corporate trust matter, any other officer to whom such matter is referred because of his knowledge of and familiarity with the particular subject. 

    "Restricted Subsidiary" of a Person means any Subsidiary of the referent Person that is not an Unrestricted Subsidiary, and, unless
specified otherwise, refers to a Restricted Subsidiary of the Company. 

    "RMBS" means residential mortgage-backed securities. 

    "Scheduled Principal Paydowns" means redemptions of Notes in the following amounts pursuant to Section 3.08(e):
(i) $5.0 million on or before [24 months], 200      ; (ii) $15.0 million on or
before [36 months], 200      ; and (iii) $15.0 million on or before  [48 months], 200   
   . [Series A
only]

    "SEC" means the Securities and Exchange Commission. 

    "Second Lien Collateral"means [Series A: the CBO-2 Bonds and the CMBS Corp.
Pledged Stock.] [Series B: the Miscellaneous Collateral, the CCR1 Pledged Stock, the QRS 1, Inc. Pledged Stock and the Nomura
Bond.]

    "Securities Act" means the Securities Act of 1933, as amended. 

    "Security Agreement" means the Security and Pledge Agreement by the Company in favor of the Collateral Agent, as amended or
supplemented from time to time. 

    "Senior Credit Facility" means one or more loan or credit agreements entered into by the Company or one or more Restricted Subsidiaries
on or after the Issue Date with one or more lenders, including any related notes, guarantees (by Subsidiaries or otherwise), collateral documents, instruments and agreements executed in connection
therewith, as such agreement(s) and related documents may be amended, restated, supplemented, renewed, refinanced, replaced or otherwise modified from time to time (in each case, in whole or in part,
and without limitation as to amount, terms, conditions, covenants and other provisions), with the same or other agents, trustees, representatives, lenders or holders, irrespective of any changes in
the terms and conditions thereof. Without limiting the generality of the foregoing, the term "Senior Credit Facility" shall include any amendment, amendment and restatement, renewal, extension,
restructuring, supplement or modification to any Senior Credit Facility and all refundings, refinancings and replacements of any Senior Credit Facility, including any agreement (i) extending
the maturity of any Obligations incurred thereunder or contemplated thereby, (ii) adding or deleting borrowers or guarantors thereunder, so long as borrowers and guarantors 

9

 

include one or more of the Company and its Restricted Subsidiaries and their respective successors and assigns, or (iii) increasing the amount of Indebtedness incurred thereunder or available
to be borrowed thereunder. 

    "Senior Debt" means (i) all Obligations of the Company or any Restricted Subsidiary outstanding under the Senior Credit
Facility, (ii) any other Indebtedness permitted to be incurred by the Company or any Restricted Subsidiary under the terms of this Indenture, unless the instrument under which such Indebtedness
is incurred expressly provides that it is subordinated in right of payment to the Notes, and (iii) all Obligations with respect to the foregoing. Notwithstanding anything to the contrary in the
foregoing, "Senior Debt" will not include (v) any liability for federal, state, local or other taxes owed or owing by the Company or any of its
Subsidiaries, (w) any Indebtedness of the Company or any of its Subsidiaries to any Subsidiary or other Affiliate, (x) any trade payables, (y) any Indebtedness that is incurred in
violation of this Indenture or (z) any Indebtedness which is, by its express terms, subordinated in right of payment to any other Indebtedness of the Company. 

    "Series [B] [A] Indenture" means the Indenture, dated as of the Issue Date, by and
between the Company and the trustee named therein, governing the Series [B] [A] Notes, as such indenture
may be amended, supplemented, or otherwise modified from time to time. 

    "Series [B] [A] Notes" means the [20%
Series B] [11.75% Series A] Senior Secured Notes due [2007]
[2006] issued by the Company pursuant to the Series [B]
[A] Indenture, as such notes may be amended, supplemented or otherwise modified from time to time. 

    "SPP Nonpayment Event" means failure of the Company to make any of the Scheduled Principal Paydowns pursuant to Section 3.08(e),
which failure is not cured within 30 days after the occurrence thereof. An SPP Nonpayment Event is not, in and of itself, a Default or Event of Default.  [Series A only]

    "Stated Maturity" means, with respect to any installment of interest or principal on any Indebtedness, the date on which such payment
of interest or principal was scheduled to be paid in the original documentation governing such Indebtedness, and shall not include any contingent obligations to repay, redeem or repurchase any such
interest or principal prior to the date originally scheduled for the payment thereof. 

    "Subsidiary" means, with respect to any Person, any other Person a majority of whose Voting Stock is at the time owned by such first
Person, by one or more of the Subsidiaries of such first Person, or by such first Person and one or more Subsidiaries thereof. 

    "Third Lien Collateral" means the CBO-2 Bonds and the CMBS Corp. Pledged Stock.  [Series B only]

    "TIA" means the Trust Indenture Act of 1939 (15 U.S.C. §§ 77aaa-77bbbb) as in effect on the date on
which this Indenture is qualified under the TIA. 

    "Trading Assets" means all securities owned as of the Issue Date or acquired thereafter by the Company or any wholly-owned Restricted
Subsidiary thereof that the Company for time to time deems to constitute part of the Company's "trading portfolio." 

    "Trustee" means the party named as such above until a successor replaces it in accordance with the applicable provisions of this
Indenture and thereafter means the successor serving hereunder. 

    "Unrestricted Subsidiary" means any Subsidiary that is designated by the Board of Directors as an Unrestricted Subsidiary pursuant to a
Board Resolution, any Subsidiary that is designated as such herein, and any Subsidiary of any Unrestricted Subsidiary, in each case unless and until designated to be a Restricted Subsidiary in
compliance with this definition. Any such designation by the Board of Directors shall be evidenced to the Trustee by filing with the Trustee a certified copy of the Board 

10

 

Resolution giving effect to such designation and an Officers' Certificate. The Board of Directors of the Company may at any time designate any Unrestricted Subsidiary to be a Restricted Subsidiary;
provided that such designation shall be deemed to be an incurrence of Indebtedness by a Restricted Subsidiary of the Company of any outstanding Indebtedness of such Unrestricted Subsidiary and such
designation shall only be permitted if (i) such Indebtedness is permitted under Section 4.09 hereof, calculated on a pro forma basis as if such designation had occurred at the beginning
of the Reference Period and (ii) no Default or Event of Default would be in existence following such designation. As of the Issue Date, the Subsidiaries, if any, listed on  Schedule 1.01(a)
attached hereto shall be Unrestricted Subsidiaries. 

    "Valuation Expert" means an accounting, appraisal, investment banking, professional services, consulting or similar firm, or a broker
or dealer who is active in the market for, or skilled in making determinations of value with respect to, the type of assets being valued, in each case as selected by the Company. 

    "Voting Stock" of any Person as of any date means the Capital Stock of such Person that is entitled under ordinary circumstances to
vote in the election of the Board of Directors of such Person (irrespective of whether or not, at the time, Equity Interests of any other class or classes shall have, or might have, voting power by
reason of the happening of any contingency). 

    "Weighted Average Life to Maturity" means, when applied to any Indebtedness at any date, the number of years obtained by dividing
(i) the sum of the products obtained by multiplying (a) the amount of each then remaining installment, sinking fund, serial maturity or other required payments of principal, including
payment at final maturity, in respect thereof, by (b) the number of years (calculated to the nearest one-twelfth) that will elapse between such date and the making of such payment,
by (ii) the then outstanding principal amount of such Indebtedness. 

 
 

Section 1.02.  Other Definitions.    
  

	Term
 
	 	Defined in Section

	"Affiliate Transaction"	 	4.11
	"Asset Sale Offer"	 	4.10
	"Authentication Order"	 	2.02
	"Change of Control Offer"	 	4.15
	"Change of Control Payment Date"	 	4.15
	"Covenant Defeasance"	 	8.03
	"DTC"	 	2.03
	"Event of Default"	 	6.01
	"Excess Proceeds"	 	4.10
	"incur"	 	4.09
	"Legal Defeasance"	 	8.02
	"Offer Amount"	 	3.09
	"Offer Period"	 	3.09
	"Paying Agent"	 	2.03
	"Permitted Debt"	 	4.09
	"Purchase Date"	 	3.09
	"Registrar"	 	2.03
	"Required Filings"	 	10.02
	"Restricted Payments"	 	4.07

11

  

 
 

Section 1.03.  Provisions of the TIA.    
  

    Whenever this Indenture refers to a provision of the TIA, the provision is incorporated by reference in and made a part of this Indenture. 

    The
following TIA terms used in this Indenture have the following meanings: 

    "indenture securities" means the Notes; 

    "indenture security Holder" means a Holder of a Note; 

    "indenture to be qualified" means this Indenture; 

    "indenture trustee" or "institutional trustee" means the Trustee; and 

    "obligor" on the Notes means the Company and any successor obligor on the Notes. 

    All
other terms used in this Indenture that are defined by the TIA, defined by TIA reference to another statute or defined by SEC rule under the TIA have the meanings so assigned to
them. 

 
 

Section 1.04.  Rules Of Construction.    
  

    Unless the context otherwise requires: 

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

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

    (3) "or"
is not exclusive; 

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

    (5) provisions
apply to successive events and transactions; and 

    (6) references
to sections of or rules under the Securities Act shall be deemed to include substitute, replacement or successor sections or rules adopted by the SEC
from time to time. 

 
 

ARTICLE 2.
  THE NOTES    
  

 
  Section 2.01.  Form And Dating.    
  

    The Notes and the Trustee's certificate of authentication shall be substantially in the form of  Exhibit A hereto. The Notes may have notations, legends or
endorsements required by law, stock exchange rule or usage. Each Note shall be dated
the date of its authentication. 

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

    Notes
issued in global form shall be substantially in the form of Exhibit A attached hereto (including the Global Note Legend
thereon and the "Schedule of Increases of, and Exchanges of Interests in, the Global Note" attached thereto). Notes issued in definitive form shall be substantially in the form of  Exhibit A
attached hereto (but without the Global Note Legend thereon and without the "Schedule of Increases of, and Exchanges of Interests in,
the Global Note" attached thereto). Each Global Note shall represent such of the outstanding Notes as shall be specified therein and each shall provide that it shall represent the aggregate principal
amount of outstanding Notes from time to time 

12

 

endorsed thereon and that the aggregate principal amount of outstanding Notes represented thereby may from time to time be reduced or increased, as appropriate, to reflect exchanges and redemptions.
Any endorsement of a Global Note to reflect the amount of any increase or decrease in the aggregate principal amount of outstanding Notes represented thereby shall be made by the Trustee or the Note
Custodian, at the direction of the Trustee, in accordance with instructions given by the Holder thereof as required by Section 2.06 hereof. 

 
 

Section 2.02.  Execution And Authentication.    
  

    One Officer shall sign the Notes for the Company by manual or facsimile signature. The Company's seal may be reproduced on the Notes and may be in facsimile
form. 

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

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

    The
Trustee shall, upon a written order of the Company signed by two Officers (an "Authentication Order"), (a) authenticate
Notes for original issue on the Issue Date up to the aggregate principal amount stated in clause (i) of Section 4(a) of the Notes, and (b) from time to time after the Issue Date,
to the extent required by Section 1 of the Notes, authenticate Additional Notes. [Series B only:, and (c) from time to time if and as required
by Section V.H.5 of the Reorganization Plan, authenticate Disputed Claims Notes.] Additional Notes [B: and Disputed
Claims Notes] may be issued as additional Definitive Notes or as increases in the principal amount of an outstanding Global Note. The aggregate
principal amount of Notes outstanding at any time may not exceed the amount specified in Section 4 of the Notes except as provided in Section 2.07 hereof. 

    The
Trustee may appoint an authenticating agent acceptable to the Company to authenticate Notes. An authenticating agent may authenticate Notes whenever the Trustee may do so. Each
reference in this Indenture to authentication by the Trustee includes authentication by such agent. An authenticating agent has the same rights as an Agent to deal with Holders or an Affiliate of the
Company. 

    The
Notes shall be issuable only in registered form without coupons in denominations of $1,000 and any integral multiple thereof, except that (i) Notes (including, without
limitation, Disputed Claims Notes) shall be originally issued in such denominations as may be required under the Reorganization Plan, and (ii) Additional Notes shall be originally issued in
such denominations as may be required under Section 1 of the Notes, and in each case such Notes may be subsequently transferred in such denominations. 

 
 

Section 2.03.  Registrar And Paying Agent.    
  

    The Company shall maintain an office or agency where Notes may be presented for registration of transfer or for exchange
("Registrar") and an office or agency where Notes may be presented for payment ("Paying Agent"). The
Registrar shall keep a register of the Notes and of their transfer and exchange. The Company or the Trustee may appoint one or more co-registrars and one or more additional paying agents.
The term "Registrar" includes any co-registrar and the term "Paying Agent" includes any additional paying agent. The Company or the Trustee may change any Paying Agent or Registrar without
notice to any Holder. The Company or the Trustee shall notify the other, as appropriate, in writing of the name and address of any Agent not a party to this Indenture. If the Company fails to appoint
or maintain another entity as Registrar or Paying Agent, the Trustee shall act as such. Neither the Company nor any of its Subsidiaries may act as Paying Agent or Registrar without the consent of the
Trustee. 

13

 

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

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

 
 

Section 2.04.  Paying Agent To Hold Money In Trust.    
  

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

    Subject
to applicable escheat and abandoned property laws, any money deposited with the Trustee or any Paying Agent, or then held by the Company, in trust for the payment of the
principal of (and premium, if any, on) or interest on any Note and remaining unclaimed for two years after such principal (and premium, if any) or interest has become due and payable shall be paid to
the Company on Company request, or (if then held by the Company) shall be discharged from such trust; and the Holder of such Note shall thereafter, as an unsecured general creditor, look only to the
Company for payment hereof, and all liability of the Trustee or such Paying Agent with respect to such trust money, and all liability of the Company as trustee thereof, shall thereupon cease;
provided, however, that the Trustee or such Paying Agent, before being required to make any such repayment, shall at the expense of the Company cause to be published once, in a newspaper published in
the English language, customarily published on each Business Day and of general circulation in the Borough of Manhattan, the City of New York, notice that such money remains unclaimed and that, after
a date specified therein, which shall not be less than 30 days from the date of such publication, any unclaimed balance of such money then remaining will be repaid to the Company. 

 
 

Section 2.05.  Holder Lists.    
  

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

 
 

Section 2.06. Transfer And Exchange.    
  

    (a)  Transfer and Exchange of Global Notes.  A Global Note may not be transferred as a whole except by
the Depositary to a nominee of the Depositary, by a nominee of the Depositary to the Depositary or to another nominee of the Depositary, the Depositary or any such nominee to a successor Depositary or
a nominee of such successor Depositary. All Global Notes will be exchanged by the Company for Definitive Notes if (i) the Company delivers to the Trustee notice from the Depositary that it is
unwilling or unable to continue to act as Depositary or that it is no longer a clearing agency registered under the Exchange Act and, in either case, a successor Depositary is not 

14

 

appointed by the Company within 120 days after the date of such notice from the Depositary, (ii) the Company in its sole discretion determines that the Global Notes (in whole but not in
part) should be exchanged for Definitive Notes and delivers a written notice to such effect to the Trustee, or (iii) there shall have occurred and be continuing a Default or Event of Default
and such exchange shall be requested by a written notice given to the Company by the Trustee. Upon the occurrence of any of the preceding events in (i), (ii) or (iii) above, Definitive
Notes shall be issued in such names and principal amounts as the Depositary shall instruct the Trustee. Global Notes also may be exchanged or replaced, in whole or in part, as provided in Sections
2.07 and 2.10 hereof. Every Note authenticated and delivered in exchange for, or in lieu of, a Global Note or any portion thereof, pursuant to this Section 2.06 or Section 2.07 or 2.10
hereof, shall be authenticated and delivered in the form of, and shall be, a Global Note. A Global Note may not be exchanged for another Note other than as provided in this Section 2.06(a),
however, beneficial interests in a Global Note may be transferred and exchanged as provided in Section 2.06(b) or (c) hereof. 

    (b)  Transfer and Exchange of Beneficial Interests in the Global Notes.  The transfer and exchange of
beneficial interests in the Global Notes shall be effected through the Depositary, in accordance with the provisions of this Indenture and the Applicable Procedures. Beneficial interests in the Global
Notes shall be subject to restrictions on transfer to the extent required by the Securities Act and applicable Bankruptcy Law, including, without limitation, 11 U.S.C. § 1145. Transfers of
beneficial interests in the Global Notes also shall require compliance with either paragraph (i) or (ii) below, as applicable: 

     (i) Transfer of Beneficial Interests in the Same Global Note. Beneficial interests in any Global Note may be transferred
to Persons who take delivery thereof in the form of a beneficial interest in the same Global Note. No written orders or instructions shall be required to be delivered to the Registrar to effect the
transfers described in this Section 2.06(b)(i). 

    (ii) All
Other Transfers and Exchanges of Beneficial Interests in Global Notes. In connection with all transfers and exchanges of beneficial interests that are not
subject to Section 2.06(b)(i) above, the transferor of such beneficial interest must deliver to the Registrar either (A) (1) a written order from a Participant or an Indirect
Participant given to the Depositary in accordance with the Applicable Procedures directing the Depositary to credit or cause to be credited a beneficial interest in another Global Note in an amount
equal to the beneficial interest to be transferred or exchanged and (2) instructions given in accordance with the Applicable Procedures containing information regarding the Participant account
to be credited with such increase or (B) (1) a written order from a Participant or an Indirect Participant given to the Depositary in accordance with the Applicable Procedures directing the
Depositary to cause to be issued a Definitive Note in an amount equal to the beneficial interest to be transferred or exchanged and (2) instructions given by the Depositary to the Registrar
containing information regarding the Person in whose name such Definitive Note shall be registered to effect the transfer or exchange referred to in (1) above. Upon satisfaction of all of the
requirements for transfer or exchange of beneficial interests in Global Notes contained in this Indenture and the Notes or otherwise applicable under the Securities Act or applicable Bankruptcy Law,
the Trustee shall adjust the principal amount of the relevant Global Note(s) pursuant to Section 2.06(g) hereof. 

    (c)  Transfer or Exchange of Beneficial Interests for Definitive Notes.  If any holder of a beneficial
interest in a Global Note proposes to exchange such beneficial interest for a Definitive Note or to transfer such beneficial interest to a Person who takes delivery thereof in the form of a Definitive
Note, then, upon satisfaction of the conditions set forth in Section 2.06(b)(ii) hereof, the Trustee shall cause the aggregate principal amount of the applicable Global Note to be
reduced accordingly pursuant to Section 2.06(g) hereof, and the Company shall execute and the Trustee shall authenticate and deliver to the Person designated in the instructions a Definitive
Note in the appropriate principal amount. Any Definitive Note issued in exchange for a beneficial interest pursuant to this Section 2.06(c) shall be registered in such name or names and in such
authorized denomination or denominations as the holder 

15

 

of such beneficial interest shall instruct the Registrar through instructions from the Depositary and the Participant or Indirect Participant. The Trustee shall deliver such Definitive Notes to the
Persons in whose names such Notes are so registered. 

    (d)  Transfer and Exchange of Definitive Notes for Beneficial Interests.  A Holder of a Definitive Note
may exchange such Note for a beneficial interest in a Global Note or transfer such Definitive Notes to a Person who takes delivery thereof in the form of a beneficial interest in a Global Note at any
time. Upon receipt of a request for such an exchange or transfer, the Trustee shall cancel the applicable Definitive Note and increase or cause to be increased the aggregate principal amount of one of
the Global Notes. If any such exchange or transfer from a Definitive Note to a beneficial interest is effected at a time when a Global Note has not yet been issued, the Company shall issue and, upon
receipt of an Authentication Order in accordance with Section 2.02 hereof, the Trustee shall
authenticate one or more Global Notes in an aggregate principal amount equal to the principal amount of Definitive Notes so transferred. 

    (e)  Transfer and Exchange of Definitive Notes for Definitive Notes.  Upon request by a Holder of
Definitive Notes and such Holder's compliance with the provisions of this Section 2.06(e), the Registrar shall register the transfer or exchange of Definitive Notes. Prior to such registration
of transfer or exchange, the requesting Holder shall present or surrender to the Registrar the Definitive Notes duly endorsed or accompanied by a written instruction of transfer in form satisfactory
to the Registrar duly executed by such Holder or by his attorney, duly authorized in writing. 

    (f)  Global Note Legend.  The following legend shall appear on the face of all Global Notes issued under
this Indenture unless specifically stated otherwise in the applicable provisions of this Indenture: 

"UNLESS
THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY, A NEW YORK CORPORATION ("DTC"), NEW YORK, NEW
YORK, TO THE COMPANY OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY CERTIFICATE ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR SUCH OTHER NAME AS IS REQUESTED BY AN
AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO CEDE & CO., OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE OR OTHER USE
HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST HEREIN. TRANSFERS OF THIS GLOBAL NOTE SHALL BE LIMITED TO
TRANSFERS IN WHOLE, BUT NOT IN PART, TO NOMINEES OF DTC OR TO A SUCCESSOR THEREOF OR SUCH SUCCESSOR'S NOMINEE AND TRANSFERS OF PORTIONS OF THIS GLOBAL NOTE SHALL BE LIMITED TO TRANSFERS MADE IN
ACCORDANCE WITH THE RESTRICTIONS SET FORTH IN THE INDENTURE REFERRED TO ON THE REVERSE HEREOF." 

    (g)  Cancellation and/or Adjustment of Global Notes.  At such time as all beneficial interests in a
particular Global Note have been exchanged for Definitive Notes or a particular Global Note has been redeemed, repurchased or canceled in whole and not in part, each such Global Note shall be returned
to or retained and canceled by the Trustee in accordance with Section 2.11 hereof. At any time prior to such cancellation, if any beneficial interest in a Global Note is exchanged for or
transferred to a Person who will take delivery thereof in the form of a beneficial interest in another Global Note or for Definitive Notes, the principal amount of Notes represented by such Global
Note shall be reduced accordingly and an endorsement shall be made on such Global Note by the Trustee or by the Depositary at the direction of the Trustee to reflect such reduction; and if the
beneficial interest is being exchanged for or transferred to a Person who will take delivery thereof in the form of a 

16

 

beneficial interest in another Global Note, such other Global Note shall be increased accordingly and an endorsement shall be made on such Global Note by the Trustee or by the Depositary at the
direction of the Trustee to reflect such increase. 

    (h)  General Provisions Relating to Transfers and Exchanges.  

     (i) To
permit registrations of transfers and exchanges, the Company shall execute and the Trustee shall authenticate Global Notes and Definitive Notes upon the
Company's order or at the Registrar's request. 

    (ii) No
service charge shall be made to a holder of a beneficial interest in a Global Note or to a Holder of a Definitive Note for any registration of transfer or
exchange, but the Company may require payment of a sum sufficient to cover any transfer tax or similar governmental charge payable in connection therewith (other than any such transfer taxes or
similar governmental charge payable upon exchange or transfer pursuant to Sections 2.10, 3.06, 3.09, 4.10, 4.15 and 9.05 hereof). 

    (iii) The
Registrar shall not be required to register the transfer of or exchange any Note selected for redemption in whole or in part, except the unredeemed portion of
any Note being redeemed in part. 

    (iv) All
Global Notes and Definitive Notes issued upon any registration of transfer or exchange of Global Notes or Definitive Notes shall be the valid obligations of
the Company, evidencing the same debt, and entitled to the same benefits under this Indenture, as the Global Notes or Definitive Notes surrendered upon such registration of transfer or exchange. 

    (v) The
Company shall not be required (A) to issue, to register the transfer of or to exchange any Notes during a period beginning at the opening of business 15
Business Days before the day of any selection of Notes for redemption under Section 3.02 hereof and ending at the close of business on the day of selection, (B) to register the transfer
of or to exchange any Note so selected for redemption in whole or in part, except the unredeemed portion of any Note being redeemed in part or (C) to register the transfer of or to exchange a
Note between a record date and the next succeeding Interest Payment Date. 

    (vi) Prior
to due presentment for the registration of a transfer of any Note, the Trustee, any Agent and the Company may deem and treat the Person in whose name any
Note is registered as the absolute owner of such Note for the purpose of receiving payment of principal of and interest on such Notes and for all other purposes, and none of the Trustee, any Agent or
the Company shall be affected by notice to the contrary. 

   (vii) The
Trustee shall authenticate Global Notes and Definitive Notes in accordance with the provisions of Section 2.02 hereof. 

   (viii) All
certifications, certificates and Opinions of Counsel required to be submitted to the Registrar pursuant to this Section 2.06 to effect a registration
of transfer or exchange may be submitted by facsimile. 

 
 

Section 2.07.  Replacement Notes    
  

    If any mutilated Note is surrendered to the Trustee or the Company and the Trustee and the Company each receives evidence to its satisfaction of the
destruction, loss or theft of any Note, the Company shall issue and the Trustee, upon receipt of an Authentication Order, shall authenticate a replacement Note if the requirements of this Indenture
are met. If required by the Trustee or the Company, an indemnity bond must be supplied by the Holder that is sufficient in the judgment of the Trustee and the Company to protect the Company, the
Trustee, any Agent and any authenticating agent 

17

 

from any loss that any of them may suffer if a Note is replaced. The Company may charge for its expenses in replacing a Note. 

    Every
replacement Note is an additional obligation of the Company and shall be entitled to all of the benefits of this Indenture equally and proportionately with all other Notes duly
issued hereunder. 

 
 

Section 2.08.  Outstanding Notes.    
  

    The Notes outstanding at any time are all the Notes authenticated by the Trustee except for those canceled by it, those delivered to it for cancellation, those
reductions in the interest in a Global Note
effected by the Trustee in accordance with the provisions hereof, and those described in this Section as not outstanding. Except as set forth in Section 2.09 hereof, a Note does not cease to be
outstanding because the Company or an Affiliate of the Company holds the Note. 

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

    If
the principal amount of any Note is considered paid under Section 4.01 hereof, it ceases to be outstanding and interest on it ceases to accrue. 

    If
the Paying Agent (other than the Company, a Subsidiary or an Affiliate of any thereof) holds, on a redemption date or maturity date, money sufficient to pay Notes payable on that
date, then on and after that date such Notes shall be deemed to be no longer outstanding and shall cease to accrue interest. 

 
 

Section 2.09.  Treasury Notes.    
  

    In determining whether the Holders of the required principal amount of Notes have concurred in any direction, waiver or consent, Notes owned by the Company, or
by any Person directly or indirectly controlling or controlled by or under direct or indirect common control with the Company, shall be considered as though not outstanding, except that for the
purposes of determining whether the Trustee shall be protected in relying on any such direction, waiver or consent, only Notes that the Trustee knows are so owned shall be so disregarded. 

 
 

Section 2.10.  Temporary Notes.    
  

    Until certificates representing Notes are ready for delivery, the Company may prepare and the Trustee, upon receipt of an Authentication Order, shall
authenticate temporary Notes. Temporary Notes shall be substantially in the form of certificated Notes but may have variations that the Company considers appropriate for temporary Notes and as shall
be reasonably acceptable to the Trustee. Without unreasonable delay, the Company shall prepare and the Trustee shall authenticate definitive Notes in exchange for temporary Notes. 

    Holders
of temporary Notes shall be entitled to all of the benefits of this Indenture. 

 
 

Section 2.11.  Cancellation.    
  

    The Company at any time may deliver Notes to the Trustee for cancellation. The Registrar and Paying Agent shall forward to the Trustee any Notes surrendered to
them for registration of transfer, exchange or payment. The Trustee and no one else shall cancel all Notes surrendered for registration of transfer, exchange, payment, replacement or cancellation and
shall destroy canceled Notes (subject to the record retention requirement of the Exchange Act). Certification of the destruction of all canceled Notes shall be delivered to the Company. The Company
may not issue new Notes to replace Notes that it has paid or that have been delivered to the Trustee for cancellation. 

18

 

 
 

Section 2.12.  Defaulted Interest.    
  

    If the Company defaults in a payment of interest on the Notes, it shall pay the defaulted interest in any lawful manner to the Persons who are Holders on a
subsequent special record date, in each case at the rate or rates provided in the Notes. The Company shall notify the Trustee in writing of the amount of defaulted interest proposed to be paid on each
Note and the date of the proposed payment. The Company shall fix or cause to be fixed each such special record date and payment date, provided that no such special record date shall be less than
10 days prior to the related payment date for such defaulted interest. At least 15 days before the special record date, the Company (or, upon the written request of the Company, the
Trustee in the name and at the expense of the Company) shall mail or cause to be mailed to Holders a notice that states the special record date, the related payment date and the amount of such
interest to be paid. 

 
 

ARTICLE 3.
  REDEMPTION AND PREPAYMENT    
  

 
  Section 3.01.  Notices To Trustee.    
  

    If the Company elects to redeem Notes pursuant to the optional redemption provisions of Section 3.07 hereof, it shall furnish to the Trustee, at least
45 days but not more than 60 days before a redemption date, an Officers' Certificate setting forth (i) the clause of this Indenture pursuant to which the redemption shall occur,
(ii) the redemption date, (iii) the principal amount of Notes to be redeemed and (iv) the redemption price. 

 
 

Section 3.02.  Selection Of Notes To Be Redeemed.    
  

    If less than all of the Notes are to be redeemed at any time, selection of Notes for redemption will be made by the Trustee on a pro rata basis. 

    The
Trustee shall promptly notify the Company in writing of the Notes selected for redemption and, in the case of any Note selected for partial redemption, the principal amount
thereof to be redeemed. Provisions of this Indenture that apply to Notes called for redemption also apply to portions of Notes called for redemption. 

 
 

Section 3.03.  Notice Of Redemption.    
  

    Subject to the provisions of Section 3.09 hereof, at least [30] days but not
more than 60 days before a redemption date, the Company shall mail or cause to be mailed, by first class mail, a notice of redemption to each Holder of Notes to be redeemed at its registered
address. 

    The
notice shall identify the Notes to be redeemed and shall state: 

    (a) the
redemption date; 

    (b) the
redemption price and accrued interest to be paid; 

    (c) if
any Note is being redeemed in part, the portion of the principal amount of such Note to be redeemed and that, after the redemption date upon surrender of such
Note, a new Note or Notes in
principal amount equal to the unredeemed portion shall be issued upon cancellation of the original Note; 

    (d) the
name and address of the Paying Agent; 

    (e) that
Notes called for redemption must be surrendered to the Paying Agent to collect the redemption price; 

19

  

    (f)  that,
unless the Company defaults in making such redemption payment, interest on Notes called for redemption ceases to accrue on and after the redemption date; 

    (g) the
Section of the Notes and/or this Indenture pursuant to which the Notes called for redemption are being redeemed; and 

    (h) that
no representation is made as to the correctness or accuracy of the CUSIP number, if any, listed in such notice or printed on the Notes. 

    At
the Company's request, the Trustee shall give the notice of redemption in the Company's name and at its expense; provided, however, that the Company shall have delivered to the
Trustee, at least [45] days prior to the redemption date, an Officers' Certificate requesting that the Trustee give such notice
and setting forth the information to be stated in such notice as provided in this Section. 

 
 

Section 3.04.  Effect Of Notice Of Redemption.    
  

    Once notice of redemption is mailed in accordance with Section 3.03 hereof, Notes called for redemption become irrevocably due and payable on the
redemption date at the redemption price; provided, however, that the failure to provide such notice shall not affect the liability of the Company to pay the redemption price. A notice of redemption
may not be conditional. 

 
 

Section 3.05.  Deposit Of Redemption Price.    
  

    On or before 11:00 a.m. Eastern time, on the redemption date, the Company shall deposit with the Trustee or with the Paying Agent money sufficient to
pay the redemption price of and accrued interest on all Notes to be redeemed on that date. The Trustee or the Paying Agent shall promptly return to the Company any money deposited with the Trustee or
the Paying Agent by the Company in excess of the amounts necessary to pay the redemption price of, and accrued interest on, all Notes to be redeemed. 

    If
the Company complies with the provisions of the preceding paragraph, on and after the redemption date, interest shall cease to accrue on the Notes or the portions of Notes called
for redemption. If a Note is redeemed on or after an interest record date but on or prior to the related interest payment date, then any accrued and unpaid interest shall be paid to the Person in
whose name such Note was registered at the close of business on such record date. If any Note called for redemption shall not be so paid upon surrender for redemption because of the failure of the
Company to comply with the preceding paragraph, interest shall be paid on the unpaid principal, from the redemption date until such principal is paid, and to the extent lawful on any interest not paid
on such unpaid principal, in each case at the rate or rates provided in the Notes. 

 
 

Section 3.06.  Notes Redeemed In Part.    
  

    Upon surrender of a Note that is redeemed in part, the Company shall issue and, upon the Company's written request, the Trustee shall authenticate for the
Holder at the expense of the Company a new Note equal in principal amount to the unredeemed portion of the Note surrendered. 

 
 

Section 3.07.  Optional Redemption.    
  

    The Notes will be subject to redemption at any time and from time to time at the option of the Company, in whole or in part, without premium or penalty, upon
not less than 30 nor more than 60 days' notice, at the redemption price of 100% of the principal amount thereof plus accrued and unpaid interest thereon to the applicable redemption date. 

    Any
redemption pursuant to this Section 3.07 shall be made pursuant to the provisions of Section 3.01 through 3.06 hereof. 

20

 

 
 

Section 3.08.  Mandatory Redemption; Repurchase at Option of Holder.    
  

    (a) The
Company shall not be required to make mandatory redemption, purchase or sinking fund payments with respect to the Notes except as specified in this Section. 

    (b) The
Company shall make Asset Sale Offers to the extent required by Section 4.10 hereof, and Change of Control Offers to the extent required by
Section 4.15 hereof. 

    (c) If
[Series B only: (i) the Series A Notes have been paid in full and
(ii)] the Company issues Equity Interests in the Company after the Issue Date, then the Company shall make an offer to all Holders to purchase the maximum principal
amount of Notes that may be purchased out of the Net Equity Proceeds of such issuance, at an offer price in cash in an amount equal to 100% of the principal amount thereof plus accrued and unpaid
interest thereon, if any, to the date of purchase, in accordance with the procedures set forth in this Indenture, subject to a maximum total offer price of $10.0 million in the aggregate for
all such offers under this Section 3.08(c) to purchase Notes and Series [B] [A] Notes made after
the Issue Date. To the extent that any Net Equity Proceeds remain after consummation of such purchase offer, the Company may use such remaining Net Equity Proceeds for any purpose not otherwise
prohibited by this Indenture. If the aggregate principal amount of Notes tendered into such purchase offer exceeds the amount of Net Equity Proceeds, the Trustee shall select the Notes to be purchased
on a pro rata basis. A purchase offer made under this Section 3.08(c) shall be made pursuant to procedures substantially similar to those governing Asset Sale Offers, as set forth in
Section 3.09. Notwithstanding any other provision of this Indenture, the Series [B] [A]
Indenture, the Notes or the Series [B] [A] Notes, the total purchase price paid to purchase Notes
pursuant to this Section 3.08(c) and to purchase Series [B] [A] Notes pursuant to the
corresponding provision of the Series [B][A] Indenture, whether pursuant to one or more purchase offers,
shall in no event exceed the aggregate amount of $10.0 million. 

    (d) [Series A only:] On each Interest Payment Date, the Company shall make a mandatory
redemption of Notes in an aggregate principal amount equal to the Miscellaneous Collateral Cashflow received since the last redemption pursuant to this subsection (d) or, in the case of the
first redemption pursuant to this subsection (d), since the Issue Date (the "Mandatory Amortization Payments"). Such redemption shall be made at a
redemption price equal to 100% of the principal amount of the Notes being redeemed. [discuss mechanical issues (timing) with
Trustee]

    (e) [Series A only:] Unless the Company, not more than 60 days prior to the
relevant Interest Payment Date, delivers to the Trustee an Officers' Certificate stating that the Company has determined that the Company will not have sufficient liquidity on a projected basis to
make the redemptions described in this subsection and to pay all anticipated operating expenses and other obligations, including, without limitation, interest, Mandatory Amortization Payments and
funding and maintenance of a $7.5 million working capital reserve account, but excluding dividends pursuant to Section 4.07(b)(ii)(B), the Company shall make mandatory redemptions of
Notes in the amounts of the Scheduled Principal Paydowns on or before the corresponding Interest Payment Dates described in the definition of such term. Such redemptions shall be made at redemption
prices equal to 100% of the principal amount of
Notes being redeemed. All amounts paid to Holders to purchase Notes pursuant to Section 4.10 of this Indenture shall be credited against the redemption requirements set forth in this
Section 3.08(e) in order of maturity. 

 
 

Section 3.09.  Offer To Purchase By Application Of Excess Proceeds.    
  

    In the event that, pursuant to Section 4.10 hereof, the Company shall be required to commence an Asset Sale Offer, it shall follow the procedures
specified below. 

    The
Asset Sale Offer shall remain open for a period of at least 20 Business Days following its commencement (the "Offer Period"). No
later than five Business Days after the termination of the 

21

 

Offer Period (the "Purchase Date"), the Company shall purchase the principal amount of Notes required to be purchased pursuant to Section 4.10
hereof (the "Offer Amount") or, if less than the Offer Amount has been tendered, all Notes tendered in response to the Asset Sale Offer. Payment for any
Notes so purchased shall be made in the same manner as interest payments are made. 

    If
the Purchase Date is on or after an interest record date and on or before the related interest payment date, any accrued and unpaid interest shall be paid to the Person in whose
name a Note is registered at the close of business on such record date, and no additional interest shall be payable to Holders who tender Notes pursuant to the Asset Sale Offer. 

    Upon
the commencement of an Asset Sale Offer, the Company shall send, by first class mail, a notice to the Trustee and each of the Holders, with a copy to the Trustee. The notice
shall contain all instructions and materials necessary to enable such Holders to tender Notes pursuant to the Asset Sale Offer. The Asset Sale Offer shall be made to all Holders. The notice, which
shall govern the terms of the Asset Sale Offer, shall state: 

    (a) that
the Asset Sale Offer is being made pursuant to this Section 3.09 and Section 4.10 hereof and the length of time the Asset Sale Offer shall remain
open; 

    (b) the
Offer Amount, the purchase price and the Purchase Date; 

    (c) that
any Note not tendered or accepted for payment shall continue to accrue interest; 

    (d) that,
unless the Company defaults in making such payment, any Note accepted for payment pursuant to the Asset Sale Offer shall cease to accrue interest after the
Purchase Date; 

    (e) that
Holders electing to have a Note purchased pursuant to an Asset Sale Offer may elect to have all or a portion of such Note purchased; 

    (f)  that
Holders electing to have a Note purchased pursuant to any Asset Sale Offer shall be required to surrender the Note, with the form entitled "Option of Holder
to Elect Purchase" on the reverse of the Note completed, or transfer by book-entry transfer, to the Company, a depositary, if appointed by the Company, or a Paying Agent at the address
specified in the notice prior to the expiration of the Offer Period; 

    (g) that
Holders shall be entitled to withdraw their election if the Company, the depositary or the Paying Agent, as the case may be, receives, not later than the
expiration of the Offer Period, a telegram, telex, facsimile transmission or letter setting forth the name of the Holder, the principal amount of the Note the Holder delivered for purchase and a
statement that such Holder is withdrawing his election to have such Note purchased; 

    (h) that,
if the aggregate principal amount of Notes tendered by Holders exceeds the Offer Amount, the Company shall select the Notes to be purchased on a pro rata
basis; and 

    (i)  that
Holders whose Notes were purchased only in part shall be issued new Notes equal in principal amount to the unpurchased portion of the Notes surrendered (or
transferred by book-entry transfer). 

    On
or before the Purchase Date, the Company shall, to the extent lawful, accept for payment, on a pro rata basis to the extent
necessary, the Offer Amount of Notes or portions thereof tendered pursuant to the Asset Sale Offer, or if less than the Offer Amount has been tendered, all Notes tendered, and shall deliver to the
Trustee an Officers' Certificate stating that such Notes or portions thereof were accepted for payment by the Company in accordance with the terms of this Section 3.09. The Company, the
Depositary or the Paying Agent, as the case may be, shall promptly (but in any case not later than five days after the Purchase Date) mail or deliver to each tendering Holder an amount equal to the
purchase price of the Notes tendered by such Holder and accepted by the Company for purchase, and the Company shall promptly issue a new Note, and the Trustee, upon written request 

22

 

from the Company shall authenticate and mail or deliver such new Note to such Holder, in a principal amount equal to any unpurchased portion of the Note surrendered. Any Note not so accepted shall be
promptly mailed or delivered by the Company to the Holder thereof. The Company shall publicly announce the results of the Asset Sale Offer on or prior to the Purchase Date. The Company shall comply
with the requirements of Rule 14e-1 under the Exchange Act and any other securities laws and regulations thereunder to the extent such laws and regulations are applicable in
connection with the repurchase of Notes in connection with an Asset Sale Offer and, to the extent inconsistent with the provisions of this Indenture, such laws and regulations shall govern. 

 
 

ARTICLE 4.
  COVENANTS    
  

 
  Section 4.01.  Payment Of Notes.    
  

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

 
 

Section 4.02.  Maintenance Of Office Or Agency.    
  

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

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

    The
Company hereby designates the Corporate Trust Office of the Trustee as one such office or agency of the Company in accordance with Section 2.03. 

 
 

Section 4.03.  Reports.    
  

    Whether or not required by the rules and regulations of the SEC, so long as any Notes are outstanding, the Company shall furnish to the Trustee (i) all
quarterly and annual financial information that would be required to be contained in a filing with the SEC on Forms 10-Q and 10-K if the Company were required to file such
forms, including a "Management's Discussion and Analysis of Financial Condition and Results of Operations" and, with respect to the annual information only, a report thereon by the Company's certified
independent accountants and (ii) all current reports that would be required to be filed with the SEC on Form 8-K if the Company were required to file such reports, in each
case, promptly after such filing. 

23

 

 
 

Section 4.04.  Compliance Certificate.    
  

    (a) The
Company shall deliver to the Trustee, within 120 days after the end of each fiscal year, an Officers' Certificate stating that a review of the activities
of the Company and its Subsidiaries during the preceding fiscal year has been made under the supervision of the signing Officers with a view to determining whether the Company has kept, observed,
performed and fulfilled its obligations under this Indenture, and further stating, as to each such Officer signing such certificate, that, to his or her knowledge, no Default or Event of Default
exists (or, if a Default or Event of Default exists, describing
such Default or Event of Default of which he or she may have knowledge and what action the Company is taking or proposes to take with respect thereto). 

    (b) The
Company shall, so long as any of the Notes are outstanding, deliver to the Trustee, forthwith upon any Officer becoming aware of any Default or Event of
Default, an Officers' Certificate specifying such Default or Event of Default and what action the Company is taking or proposes to take with respect thereto. 

 
 

Section 4.05.  Taxes.    
  

    The Company shall pay, prior to delinquency, all material taxes, assessments, and governmental levies except such as are contested in good faith and by
appropriate proceedings or where the failure to effect such payment is not adverse in any material respect to the Holders of the Notes. 

 
 

Section 4.06.  Stay, Extension And Usury Laws.    
  

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

 
 

Section 4.07.  Restricted Payments.    
  

    (a) Subject
to the other provisions of this Section, the Company shall not (i) declare or pay any dividend or make any distribution of value (each, a
"dividend") on account of the Company's Equity Interests or (ii) purchase, redeem or otherwise acquire or retire for value any Preferred Equity
Interests of the Company (all such payments and other actions being collectively referred to as "Restricted Payments"). 

    (b) Subsection
(a) above will not prohibit: 

     (i) the
payment of any dividend within 90 days after the date of declaration thereof, if at said date of declaration such payment would have complied with the
provisions of this Indenture; 

    (ii) the
declaration and payment of the following types of dividends (which amounts shall be cumulative): 

    (A) dividends
payable in Equity Interests of the Company; 

    (B) dividends
on New Preferred Equity Interests if (1) the cash rate of such dividends does not exceed 13% per annum of the amount of the issuance price of such
New Preferred Equity Interests, (2) the Company has determined that the Company has sufficient liquidity on a projected basis to pay such cash dividends and pay all interest, Mandatory
Amortization Payments and Scheduled Principal Paydowns scheduled to be due and payable during the 

24

 

upcoming twelve-month period following the date of declaration of such dividend and to fund and maintain a $7.5 million working capital reserve, (3) no Default or Event of Default is
then continuing, and (4) as of the end of the most recently ended full fiscal quarter for which internal financial statements are available immediately preceding the date of declaration of such
dividend, Actual Real Estate Losses since the Issue Date are not greater than Projected Real Estate Losses; 

    (C) so
long as no Default or Event of Default is then continuing, dividends payable in cash on Preferred Equity Interests in an amount not to exceed $4.1 million
per year; and 

    (D) dividends
payable in cash if (1) the Board of Directors deems payment of such dividend in cash to be necessary in order to maintain REIT Status,
(2) the Holders are given notice of such proposed dividend not less than 20 days prior to the record date therefor, (3) the Articles Supplementary creating the Noteholder
Preferred Stock have been filed and the Holders are granted the right concurrently with the declaration of such dividend to convert an aggregate unpaid principal amount of Notes equal to  [110%] of the
amount of the proposed dividend into Noteholder Preferred Stock having a liquidation value equal to  [110%] of the amount of the proposed dividend, (4) such dividend is payable first, to Holders who
have converted Notes
into Noteholder Preferred Stock, as redemption payments for the redemption of such Holders' Noteholder Preferred Stock, and second, to the extent the aggregate
amount of such dividend is not fully utilized in connection with the redemption of such Noteholder Preferred Stock, to holders of other capital stock of the Company as specified by the Company in the
resolution of the Board of Directors authorizing the declaration of such dividend, and (5) the aggregate amount of such dividend is limited to the amount necessary in order to maintain REIT
Status; and 

    (iii) the
redemption, repurchase, retirement or other acquisition of: 

    (A) any
Preferred Equity Interests of the Company in exchange for, or out of the net cash proceeds of a substantially concurrent sale (other than to a Restricted
Subsidiary of the Company) of other Equity Interests of the Company; 

    (B) any
Preferred Equity Interests owned by the Company or any Restricted Subsidiary of the Company; and 

    (C) Noteholder
Preferred Stock. 

    (c) The
amount of all Restricted Payments (other than cash) shall be the fair market value on the date of the Restricted Payment of the assets proposed to be
transferred pursuant to such Restricted Payment. If the fair market value of any non-cash Restricted Payment shall be in excess of $4.0 million, then such fair market value shall be
determined by the Board of Directors, whose resolution with respect thereto shall be delivered to the Trustee, and if the fair market value shall be in excess of $15.0 million, then such
determination shall also be based upon an opinion, appraisal or quotation issued by a Valuation Expert. 

    (d) The
Company may not use any dividends received from CMSLP to pay dividends on the Company's capital stock or for the redemption of preferred stock. 

 
 

Section 4.08.  Investments.    
  

    If either (i) an Event of Default has occurred and is continuing or (ii) as of the end of the most recently ended full fiscal quarter for which
internal financial statements are available, Actual Real Estate Losses since the Issue Date are greater than Projected Real Estate Losses, then the Company may not purchase CMBS rated "B" or lower by
a nationally-recognized rating agency (other than purchases
made out of the proceeds of a substantially concurrent sale of, or exchange of, CMBS that have a credit rating equal to or lower than the CMBS being purchased or received in such exchange). For
purposes of this Section, unrated CMBS shall be deemed to be rated "D." 

25

  

 
 

Section 4.09.  Incurrence Of Indebtedness.    
  

    (a) The
Company shall not, and shall not permit any of its Restricted Subsidiaries to, directly or indirectly, create, incur, issue, assume, guarantee or otherwise
become directly or indirectly liable, contingently or otherwise, with respect to (collectively, "incur") any Indebtedness;  provided, however, that the Company and its Restricted Subsidiaries may incur Indebtedness if:
 

     (i) the
Interest Coverage Ratio for the Company's most recently ended four full fiscal quarters for which internal financial statements are available (or, if internal
financial statements for at least four full fiscal quarters since the Issue Date are not available, then the Interest Coverage Ratio shall be calculated with respect to the one, two or three, as
appropriate, full fiscal quarters since the Issue Date for which internal financial statements are available) immediately preceding the date on which such additional Indebtedness is incurred would
have been at least 1.5 to 1, determined on a pro forma basis (including a pro forma application of the net proceeds therefrom), as if the additional Indebtedness had been incurred at the beginning of
such four-quarter period (or shorter period, as appropriate); and 

    (ii) either: 

    (A) such
additional Indebtedness (1) has no Stated Maturity of principal until on or after the final Stated Maturity of the  [Series B] Notes, and (2) is not by its terms subject to voluntary
prepayment, redemption or call at the option of
the Company on or prior to such date; or 

    (B) such
additional Indebtedness (1) has no Stated Maturity of principal other than at its final Stated Maturity date, (2) has a final Stated Maturity
date not more than two years after its issuance date, (3) was incurred for the purpose of financing all or any part of the purchase price or carrying cost of CMBS, RMBS or other Trading Assets,
and (4) does not constitute Non-Recourse Debt. 

    (b) The
provisions of subsection (a) above will not apply to the incurrence of any of the following items of Indebtedness (collectively,
"Permitted Debt"): 

     (i) the
incurrence by the Company and its Restricted Subsidiaries of Indebtedness (including letters of credit, with letters of credit being deemed to have a principal
amount equal to the maximum potential liability of the Company and its Restricted Subsidiaries thereunder) under the Senior Credit Facility; provided that the aggregate principal amount of all
Indebtedness (including letters of credit) outstanding under the Senior Credit Facility after giving effect to such incurrence does not exceed an amount equal to $25.0 million less the
aggregate amount of all Net Proceeds of Asset Sales applied to permanently repay any such Senior Credit Facility Indebtedness pursuant to Section 4.10 hereof; 

    (ii) the
incurrence by the Company and its Restricted Subsidiaries of the Existing Indebtedness; 

    (iii) the
incurrence by the Company of Indebtedness represented by the Notes; 

    (iv) the
incurrence by the Company or any of its Restricted Subsidiaries of Indebtedness represented by Capital Lease Obligations, mortgage financings or purchase money
obligations, in each case incurred for the purpose of financing all or any part of the purchase price or cost of construction or improvement of property, plant or equipment used in the business of the
Company or such Subsidiary, in an aggregate principal amount not to exceed $400,000 at any time outstanding; 

26

 

    (v) so long as no Default or Event of Default is then continuing, the incurrence by the Company or any of its Restricted Subsidiaries of Non-Recourse Debt
or Match Funded Indebtedness; 

    (vi) the
guarantee by the Company or any Restricted Subsidiary of Indebtedness of the Company or a Restricted Subsidiary that was permitted to be incurred by another
provision of this Section 4.09; 

   (vii) Indebtedness
arising from agreements of the Company or a Restricted Subsidiary providing for indemnification, adjustment of purchase price, assumption or
guarantee of nonrecourse liabilities and similar obligations incurred or assumed in connection with the acquisition or disposition of any Restricted Subsidiary or other assets; 

   (viii) the
incurrence by the Company or any of its Restricted Subsidiaries of intercompany Indebtedness between or among the Company and any of its Restricted
Subsidiaries; provided, however, that (A) any
subsequent issuance or transfer of Equity Interests that results in any such Indebtedness being held by a Person other than the Company or a Restricted Subsidiary thereof and (B) any sale or
other transfer of any such Indebtedness to a Person that is not either the Company or a Restricted Subsidiary thereof shall be deemed, in each case, to constitute an incurrence of such Indebtedness by
the Company or such Restricted Subsidiary, as the case may be, that was not permitted by this clause (viii); and 

    (ix) the
incurrence by the Company or any of its Restricted Subsidiaries of Permitted Refinancing Indebtedness in exchange for, or the net proceeds of which are used to
refund, refinance or replace Indebtedness that is either Existing Indebtedness or was permitted by this Indenture to be incurred under subsection (a) hereof or clauses (ii), (iii), (iv), (v),
(vi), (vii) or (ix) of this subsection (b). 

    (c) For
purposes of determining compliance with this covenant, in the event that an item of Indebtedness meets the criteria of more than one of the categories of
Permitted Debt described in subsection (b) above or is entitled to be incurred pursuant to subsection (a) above, the Company may, in its sole and absolute discretion, classify, and from
time to time re-classify, such item of Indebtedness in any manner that complies with this covenant. Accrual of interest, accretion or amortization of original issue discount, and the
payment of interest on any Indebtedness in the form of additional Indebtedness with the same terms will not be deemed to be an incurrence of Indebtedness for purposes of this covenant. 

    [(d) The Company shall not permit the documentation governing Indebtedness to purport to provide that such Indebtedness is senior in
right of payment to the Notes. The preceding sentence shall not, however, limit the ability of the Company and its Restricted Subsidiaries to create, incur and assume Liens (such issue being governed
by Section 4.12).]

 
 

Section 4.10.  Asset Sales.    
  

    (a) The
Company shall not, and shall not permit any of its Restricted Subsidiaries to, consummate an Asset Sale unless: 

    (i)  the
Company (or the Restricted Subsidiary, as the case may be) receives consideration at the time of such Asset Sale at least equal to the fair market value of the
assets disposed of; 

    (ii) if
the fair market value of such assets is in excess of $4.0 million, such value shall be determined by the Company's Board of Directors, and if such fair
market value is in excess of $15.0 million, such fair market value shall be evidenced by an opinion, appraisal or quotation issued by a Valuation Expert; 

27

 

    (iii) the Company gives notice of such Asset Sale to the Trustee not less than 10 days prior to the closing thereof; and 

    (iv) at
least 75% of the consideration therefor received by the Company or such Restricted Subsidiary is in the form of cash or Cash Equivalents. For purposes of this
clause (iv), each of the following shall be deemed to be cash: 

    (A) any
liabilities of the Company or any Restricted Subsidiary that are assumed by the transferee of any such assets or an Affiliate thereof or that otherwise cease to
be liabilities of the Company or a Restricted Subsidiary in connection with such Asset Sale; and 

    (B) any
securities, notes or other obligations received by the Company or any Restricted Subsidiary in connection with such Asset Sale that are converted by the Company
or such Restricted Subsidiary into cash or Cash Equivalents (to the extent of the cash or Cash Equivalents received in that conversion) within 180 days of such Asset Sale. 

    Notwithstanding
the foregoing, the limitations referred to in clauses (i), (ii) and (iii) above shall not apply to (1) any Asset Sale made pursuant to, and in
compliance with, Section 4.17 of this Indenture, (2) any Asset Sale made in a public markets transaction, or (3) any Asset Sale in connection with a securitization,
resecuritization or similar transaction. 

    Notwithstanding
the foregoing, the 75% limitation referred to in clause (iv) above shall not apply to any Asset Sale in which the cash or Cash Equivalents portion of the
consideration received therefrom, determined in accordance with the foregoing provision, is equal to or greater than what the after-tax proceeds would have been had such Asset Sale
complied with the aforementioned 75% limitation. 

    Notwithstanding
the foregoing, in certain circumstances Section 4.17 limits the right of the Company to sell the Miscellaneous Collateral, as more particularly set forth in
such Section. 

    (b) (i)
Within 180 days after the receipt of any Net Proceeds from an Asset Sale, the Company may apply such Net Proceeds, at its option, (A) to the
permanent repayment of Indebtedness under the Senior Credit Facility, or (B) to the acquisition of income-producing assets (including, without limitation, Trading Assets) or Equity Interests in
Persons that own income-producing assets; provided that the requirement of clause (B) above shall be deemed to be satisfied if an agreement
committing to make such acquisition is entered into by the Company or its Restricted Subsidiary within 180 days after the receipt of such Net Proceeds and such Net Proceeds are subsequently
applied in accordance with such agreement. 

    (ii) Notwithstanding
the foregoing, in the event that a Restricted Subsidiary that is not a wholly-owned Subsidiary consummates an Asset Sale, whether or not such
Restricted Subsidiary dividends or distributes to all of its stockholders (including the Company or another Restricted Subsidiary) on a pro rata basis
any proceeds of such Asset Sale, the Company or such Restricted Subsidiary need only apply its pro rata share of such proceeds in accordance with the
preceding clauses (b)(i)(A) or (b)(i)(B). 

    (iii) Pending
the final application of any such Net Proceeds, the Company may temporarily reduce revolving credit borrowings or otherwise invest such Net Proceeds in
any manner that is not prohibited by this Indenture. Any Net Proceeds from Asset Sales that are not applied or invested as provided in clause (b)(i) above will be deemed to constitute
"Excess Proceeds." 

    (iv) When
the aggregate amount of Excess Proceeds exceeds $7.5 million, the Company will be required to make an offer to all Holders of Notes, all holders of
Series [A] [B] Notes, all holders of Merrill/GACC Debt and all holders of other Indebtedness containing provisions similar to those set forth in this
Indenture with respect to offers to purchase or redeem with the proceeds of sales of assets (an "Asset Sale Offer") to purchase the maximum principal
amount of Notes and 

28

 

such other Indebtedness that may be purchased out of the Excess Proceeds, at an offer price in cash in an amount equal to 100% of the principal amount thereof plus accrued and unpaid interest thereon,
if any, to the date of purchase, in accordance with the procedures set forth in this Indenture and such other Indebtedness. The Company may, in its sole discretion, elect to make an Asset Sale Offer
prior to the expiration of the 180-day period, or with less than $7.5 million of Excess Proceeds. To the extent that any Excess Proceeds remain after consummation of an Asset Sale
Offer, the Company may use such remaining Excess Proceeds for any purpose not otherwise prohibited by this Indenture. If the aggregate principal amount of Notes and such other Indebtedness tendered
into such Asset Sale Offer exceeds the amount of Excess Proceeds, the Trustee shall select the Notes and such other Indebtedness to be purchased on a pro rata basis. Upon completion of such offer to
purchase, the amount of Excess Proceeds shall be reset at zero. Certain procedures regarding Asset Sale Offers are set forth in Section 3.09 hereof. 

    (v) The
Company shall comply with the requirements of Rule 14e-1 under the Exchange Act and any other securities laws and regulations thereunder to
the extent such laws and regulations are applicable in connection with each repurchase of Notes pursuant to an Asset Sale Offer. To the extent that the provisions of any securities laws or regulations
conflict with the Asset Sales provisions of this Indenture, the Company shall comply with the applicable securities laws and regulations and shall not be deemed to have breached its obligations under
the Asset Sale provisions of this Indenture by virtue of such conflict. 

    (c) Notwithstanding
subsection (b) above, [Series B only: (i) no Asset Sale Offer shall be made with Excess
Proceeds derived from Asset Sales of the Miscellaneous Collateral, the CCR1 Pledged Stock, the QRS 1, Inc. Pledged Stock, the Nomura Bond or the Merrill/GACC Assets unless and until the
Series A Notes have been paid in full, and (ii) if the Series A Notes have been paid in full, then] any Asset Sale Offer made with Excess
Proceeds derived from Asset Sales of the Miscellaneous Collateral, the CCR1 Pledged Stock, the QRS 1, Inc. Pledged Stock, the Nomura Bond or the Merrill/GACC Assets shall be made only to
Holders of the Notes. 

    (d) The
Company will not, and will not permit any of its Restricted Subsidiaries to, consummate any Asset Sale of the CCR1 Pledged Stock, the QRS 1, Inc. Pledged
Stock, the Nomura Bond or the Merrill/GACC Assets unless such Asset Sale is on commercially reasonable terms. If the CCR1 Pledged Stock, the QRS 1, Inc. Pledged Stock, or the Nomura Bond is
sold with the Merrill/GACC Assets (or any of them), the proceeds of such Asset Sale shall be allocated between such assets in a commercially reasonable manner. 

 
 

Section 4.11.  Transactions With Affiliates.    
  

    The Company shall not make any payment to, or sell, lease, transfer or otherwise dispose of any of its properties or assets to, or purchase any property or
assets from, or enter into or make or amend any transaction, contract, agreement, understanding, loan, advance or guarantee with, or for the benefit of, any Affiliate (each of the foregoing, an
"Affiliate Transaction"), unless (i) such Affiliate Transaction is on terms that are no less favorable to the Company than those that would have
been obtained in a comparable transaction by the Company with an unrelated Person and (ii) the Company delivers to the Trustee (a) with respect to any Affiliate Transaction or series of
related Affiliate Transactions involving aggregate consideration in excess of $2.0 million, a resolution of the Board of Directors set forth in an Officers' Certificate certifying that such
Affiliate Transaction complies with clause (i) above and that such Affiliate Transaction has been approved by a majority of the members of the Board of Directors and (b) with respect to
any Affiliate Transaction or series of related Affiliate Transactions involving aggregate consideration in excess of $25.0 million, an opinion as to the fairness to the Holders of such
Affiliate Transaction from a financial point of view issued by an accounting, appraisal or investment
banking firm of national standing. Notwithstanding the foregoing, the limitations and restrictions set forth in this Section 4.11 shall not apply to the following types of Affiliate
Transactions: (i) Affiliate 

29

 

Transactions between or among the Company and its Restricted Subsidiaries; (ii) Affiliate Transactions with officers, directors or employees of the Company or any Restricted Subsidiary entered
into in the ordinary course of business; (iii) Restricted Payments that are not prohibited by Section 4.07 hereof and the definitions used therein; and (iv) transactions entered
into in connection with the CMSLP Reorganization. 

 
 

Section 4.12.  Liens.    
  

    The Company shall not, and shall not permit any of its Restricted Subsidiaries to, create, incur or assume any Lien securing Indebtedness on any asset acquired
after the Issue Date, except Permitted Liens, unless all payments due under this Indenture and the Notes are secured by Liens on such assets on an equal and ratable basis pari passu with or senior to
the Liens securing such other Indebtedness until such time as such other Indebtedness is no longer secured by a Lien on such assets. 

 
 

Section 4.13.  Business Activities.    
  

    The Company shall not engage in any business other than Permitted Businesses, except to such extent as would not be material to the Company and its
Subsidiaries taken as a whole. 

 
 

Section 4.14.  Corporate Existence.    
  

    Subject to Article 5 hereof, the Company shall do or cause to be done all things necessary to preserve and keep in full force and effect (i) its
corporate existence, and the corporate, partnership or other existence of each of its Restricted Subsidiaries, in accordance with the respective organizational documents (as the same may be amended
from time to time) of the Company or any such Restricted Subsidiary and (ii) the rights (charter and statutory), licenses and franchises of the Company and its Restricted Subsidiaries;
provided, however, that the Company shall not be required to preserve any such right, license or franchise, or the corporate, partnership or other existence of any of its Restricted Subsidiaries, if
the senior management of the Company shall determine that the preservation thereof is no longer desirable in the conduct of the business of the Company and its Subsidiaries, taken as a whole, and that
the loss thereof is not adverse in any material respect to the Holders of the Notes. 

 
 

Section 4.15.  Offer To Repurchase Upon Change Of Control.    
  

    (a) If
a Change of Control occurs, each Holder of Notes will have the right to require the Company to repurchase all or any part of such Holder's Notes pursuant to the
offer described below (the "Change of Control Offer") at an offer price in cash equal to 100% of the aggregate principal amount thereof plus accrued and
unpaid interest thereon, if any, to the date of purchase (the "Change of Control Payment"). 

    (b) Within
30 days following any Change of Control, the Company shall mail a notice to each Holder stating: (1) that the Change of Control Offer is being
made pursuant to this Section 4.15 and that all Notes tendered will be accepted for payment in full; (2) the purchase price and the purchase date, which shall be no earlier than
30 days and no later than 60 days from the date such notice is mailed (the "Change of Control Payment Date"); (3) that any Note not
tendered will continue to accrue interest; (4) that, unless the Company defaults in the payment of the Change of Control Payment, all Notes accepted for payment pursuant to the Change of
Control Offer shall cease to accrue interest after the Change of Control Payment Date; (5) that Holders electing to have any Notes purchased pursuant to a Change of Control Offer will be
required to surrender the Notes, with the form entitled "Option of Holder to Elect Purchase" on the reverse of the Notes completed, to the Paying Agent at the address specified in the notice prior to
the expiration of the Change of Control Payment Offer; (6) that Holders will be entitled to withdraw their election if the Paying Agent receives, not later than the expiration of the Change of
Control Payment Offer, a telegram, telex, facsimile transmission or 

30

 

letter setting forth the name of the Holder, the principal amount of Notes delivered for purchase, and a statement that such Holder is withdrawing his election to have the Notes purchased; and
(7) that Holders whose Notes are being purchased only in part will be issued new Notes equal in principal amount to the unpurchased portion of the Notes surrendered. The Company shall comply
with the requirements of Rule 14e-1 under the Exchange Act and any other securities laws and regulations thereunder to the extent such laws and regulations are applicable in
connection with the repurchase of Notes in connection with a Change of Control and, to the extent inconsistent with the provisions of this Indenture, such laws and regulations shall govern. 

    (c) On
the Change of Control Payment Date, the Company shall, to the extent lawful, (1) accept for payment all Notes or portions thereof properly tendered
pursuant to the Change of Control Offer, (2) deposit with the Paying Agent an amount equal to the Change of Control Payment in respect of all Notes or portions thereof so tendered and
(3) deliver or cause to be delivered to the Trustee the Notes so accepted together with an Officers' Certificate stating the aggregate principal amount of Notes or
portions thereof being purchased by the Company. The Paying Agent shall promptly mail to each Holder of Notes so tendered the Change of Control Payment for such Notes, and the Trustee shall promptly
authenticate and mail (or cause to be transferred by book entry) to each Holder a new Note equal in principal amount to any unpurchased portion of the Notes surrendered, if any. Prior to complying
with the provisions of this Section 4.15(c), the Company shall obtain the requisite consents, if any, under all agreements governing outstanding Senior Debt to permit the repurchase of Notes
required by this Section 4.15. The Company shall publicly announce the results of the Change of Control Offer on or as soon as practicable after the Change of Control Payment Date. 

    (d) The
Company shall not be required to make a Change of Control Offer upon a Change of Control if a third party makes the Change of Control Offer in the manner, at
the times and otherwise in compliance with the requirements set forth in this Indenture applicable to a Change of Control Offer made by the Company and purchases all Notes validly tendered and not
withdrawn under such Change of Control Offer. 

 
 

Section 4.16.  Minimum Excess Cash Flow.    
  

    As of each of the dates set forth on Schedule 4.16, the Company shall cause its Excess Cash Flow
calculated for the period from [insert actual date of the first day of the fiscal quarter after the fiscal quarter during which closing
occurs] to the date set forth on Schedule 4.16, or, if four or more fiscal quarters have elapsed since the Issue Date, then for the preceding four fiscal
quarters, to be not less than the amount set forth on Schedule 4.16 opposite the applicable date. 

 
 

Section 4.17.  SPP Nonpayment Event.  [Series A only:]    
  

    Within 30 days following any SPP Nonpayment Event, the Company shall mail or cause to be mailed, by first class mail, a notice to each Holder stating
that an SPP Nonpayment Event has occurred, and requesting that the Holders vote on whether the Company should attempt to sell the Miscellaneous Collateral. The notice shall be accompanied by evidence
of the expected Net Proceeds that could be obtained by the Company from the sale of the Miscellaneous Collateral (including, where appropriate, information provided by a Valuation Expert) and, based
upon such evidence, the expected minimum sales price for such assets (the "Minimum Sales Price"). Each Holder shall have 30 days after the date
of such notice to respond to the Trustee as to whether such Holder desires the Company to sell the Miscellaneous Collateral. If the holders of at least a majority in principal amount of the Notes vote
for the sale of the Miscellaneous Collateral, then the Company shall, for the next 180 days, use commercially reasonable efforts to attempt to sell the Miscellaneous Collateral, at a price
equal to or greater than the Minimum Sales Price and otherwise on customary terms and conditions. During such 180-day period, the Company may not sell the Miscellaneous Collateral except
pursuant to this Section. If the Company is able to sell the Miscellaneous Collateral pursuant to this Section, the Net Proceeds 

31

 

of such Asset Sale shall immediately constitute Excess Proceeds and shall be applied as specified in Section 4.10(b)(iv). 

    Section 1(d)
of the form of Note attached hereto as Exhibit A governs increases in the interest rate on the principal
balance of the Notes arising out of the occurrence of an SPP Nonpayment Event in certain circumstances. 

 
 

ARTICLE 5.
  SUCCESSORS    
  

 
  Section 5.01.  Merger, Consolidation Or Sale Of Assets.    
  

    The Company shall not consolidate or merge with or into (whether or not the Company is the surviving corporation), or sell, assign, transfer, lease, convey or
otherwise dispose of all or substantially all of its properties or assets in one or more related transactions, to another Person unless (i) the Company is the surviving corporation, or the
Person formed by or surviving any such consolidation or merger (if other than the Company) or to which such sale, assignment, transfer, lease, conveyance or other disposition shall have been made is a
corporation organized or existing under the laws of the United States, any state thereof or the District of Columbia; (ii) the Person formed by or surviving any such consolidation or merger (if
other than the Company) or the Person to which such sale, assignment, transfer, lease, conveyance or other disposition shall have been made assumes all the obligations of the Company under the Notes
and this Indenture pursuant to a supplemental indenture in a form reasonably satisfactory to the Trustee; and (iii) immediately after such transaction no Default or Event of Default exists. 

 
 

Section 5.02.  Successor Corporation Substituted.    
  

    Upon any consolidation or merger, or any sale, assignment, transfer, lease, conveyance or other disposition of all or substantially all of the assets of the
Company in accordance with Section 5.01 hereof, the successor corporation formed by such consolidation or into or with which the Company is merged or to which such sale, assignment, transfer,
lease, conveyance or other disposition is made shall succeed to, and be substituted for (so that from and after the date of such consolidation, merger, sale,
assignment, transfer, lease, conveyance or other disposition, the provisions of this Indenture referring to the "Company" shall refer instead to the successor corporation and not to the Company), and
may exercise every right and power of, the Company under this Indenture with the same effect as if such successor Person had been named as the Company herein; provided, however, that the predecessor
Company shall not be relieved from the obligation to pay the principal of and interest on the Notes except in the case of a sale of all of the Company's assets that meets the requirements of
Section 5.01 hereof. 

 
 

ARTICLE 6.
  DEFAULTS AND REMEDIES    
  

 
  Section 6.01.  Events Of Default.    
  

    Each of the following constitutes an "Event of Default": 

    (a) default
for 30 days in the payment when due of interest on the Notes or Loan Fees; 

    (b) default
in payment when due of the principal of the Notes; 

    (c) failure
by the Company to make a mandatory redemption or purchase required by Section 3.08, 4.10 or 4.15 hereof; 

    (d) failure
by the Company or any of its Restricted Subsidiaries for 60 days after receipt of notice to comply with any of its other obligations, covenants or
agreements in this Indenture, the Collateral Agreements or the Notes; 

32

  

    (e) default
under any material agreement or instrument governing, evidencing or securing the Merrill/GACC Debt and expiration of all applicable cure periods, and either
(i) the Repo Purchaser has taken material action to enforce default remedies under such agreement or instrument or (ii) the Repo Purchaser has materially improved any rights granted to
it under any such agreement or instrument pursuant to one or more amendments, supplements or other modifications to such agreement or instrument; 

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

     (i) commences
a voluntary case, 

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

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

    (iv) makes
a general assignment for the benefit of its creditors, or 

    (v) generally
is not paying its debts as they become due; or 

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

     (i) is
for relief against the Company in an involuntary case; 

    (ii) appoints
a Custodian of the Company or for all or substantially all of the property of the Company; or 

    (iii) orders
the liquidation of the Company; 

and
the order or decree remains unstayed and in effect for 60 consecutive days. 

 
 

Section 6.02.  Acceleration.    
  

    If any Event of Default occurs and is continuing, the Trustee, at the request of the Holders of at least a majority in principal amount of the then outstanding
Notes, may declare all the Notes to be due and payable immediately. Notwithstanding the foregoing, in the case of an Event of Default arising from clause (f) or (g) of
Section 6.01 hereof, all outstanding Notes shall become due and payable without further action or notice. Holders of the Notes may not enforce this Indenture or the Notes except as provided in
this Indenture. Subject to certain limitations, Holders of a majority in principal amount of the then outstanding Notes may direct the Trustee in its exercise of any trust or power. The Trustee may
withhold from Holders of the Notes notice of any continuing Default or Event of Default (except a Default or Event of Default relating to the payment of principal or interest or mandatory redemption)
if it determines that withholding notice is in their interest. 

 
 

Section 6.03.  Other Remedies.    
  

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

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

33

 

 
 

Section 6.04.  Waiver Of Past Defaults.    
  

    Subject to Section 9.02, Holders of a majority in aggregate principal amount of the Notes then outstanding by notice to the Trustee may on behalf of the
Holders of all of the Notes waive an existing Default or Event of Default and its consequences hereunder except a continuing Default or Event of Default in the payment of principal, premium, if any,
Loan Fees, or interest on the Notes (including in connection with a mandatory redemption or offer to purchase). 

 
 

Section 6.05.  Control By Majority.    
  

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

 
 

Section 6.06.  Limitation On Suits.    
  

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

    (a) the
Holder of a Note gives to the Trustee written notice of a continuing Event of Default; 

    (b) the
Holders of at least a majority in principal amount of the then outstanding Notes make a written request to the Trustee to pursue the remedy; 

    (c) such
Holder of a Note or Holders of Notes offer and, if requested, provide to the Trustee indemnity satisfactory to the Trustee against any loss, liability or
expense; 

    (d) the
Trustee does not comply with the request within 60 days after receipt of the request and the offer and, if requested, the provision of indemnity; and 

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

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

 
 

Section 6.07.  Rights Of Holders Of Notes To Receive Payment.    
  

    Notwithstanding any other provision of this Indenture, the right of any Holder of a Note to receive payment of principal, premium, if any, Loan Fees, and
interest on the Note, on or after the respective due dates expressed in the Note (including in connection with a mandatory redemption or offer to purchase), or to bring suit for the enforcement of any
such payment on or after such respective dates, shall not be impaired or affected without the consent of such Holder. 

 
 

Section 6.08.  Collection Suit By Trustee.    
  

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

34

 

 
 

Section 6.09.  Trustee May File Proofs Of Claim.    
  

    The Trustee is authorized to file such proofs of claim and other papers or documents as may be necessary or advisable in order to have the claims of the
Trustee (including any claim for the reasonable compensation, expenses, disbursements and advances of the Trustee, its agents and counsel) and the Holders of the Notes allowed in any judicial
proceedings relative to the Company (or any other obligor upon the Notes), its creditors or its property and shall be entitled and empowered to collect,
receive and distribute any money or other property payable or deliverable on any such claims and any custodian in any such judicial proceeding is hereby authorized by each Holder to make such payments
to the Trustee, and in the event that the Trustee shall consent to the making of such payments directly to the Holders, to pay to the Trustee any amount due to it for the reasonable compensation,
expenses, disbursements and advances of the Trustee, its agents and counsel, and any other amounts due the Trustee under Section 7.07 hereof. To the extent that the payment of any such
compensation, expenses, disbursements and advances of the Trustee, its agents and counsel, and any other amounts due the Trustee under Section 7.07 hereof out of the estate in any such
proceeding, shall be denied for any reason, payment of the same shall be secured by a Lien on, and shall be paid out of, any and all distributions, dividends, money, securities and other properties
that the Holders may be entitled to receive in such proceeding whether in liquidation or under any plan of reorganization or arrangement or otherwise. Nothing herein contained shall be deemed to
authorize the Trustee to authorize or consent to or accept or adopt on behalf of any Holder any plan of reorganization, arrangement, adjustment or composition affecting the Notes or the rights of any
Holder, or to authorize the Trustee to vote in respect of the claim of any Holder in any such proceeding. 

 
 

Section 6.10.  Priorities.    
  

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

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

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

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

    The
Trustee may fix a record date and payment date for any payment to Holders of Notes pursuant to this Section 6.10. 

 
 

Section 6.11.  Undertaking For Costs.    
  

    In any suit for the enforcement of any right or remedy under this Indenture or in any suit against the Trustee for any action taken or omitted by it as a
Trustee, a court in its discretion may require the filing by any party litigant in the suit of an undertaking to pay the costs of the suit, and the court in its discretion may assess reasonable costs,
including reasonable attorneys' fees, against any party litigant in the suit, having due regard to the merits and good faith of the claims or defenses made by the party litigant. This Section does not
apply to a suit by the Trustee, a suit by a Holder of a Note pursuant to Section 6.07 hereof, or a suit by Holders of more than 10% in principal amount of the then outstanding Notes. 

35

 
 
 

ARTICLE 7.
  TRUSTEE    
  

 
  Section 7.01.  Duties Of Trustee.    
  

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

    (b) Except
during the continuance of an Event of Default: 

     (i) the
duties of the Trustee shall be determined solely by the express provisions of this Indenture and the Trustee need perform only those duties that are
specifically set forth in this Indenture and no others, and no implied covenants or obligations shall be read into this Indenture against the Trustee; and 

    (ii) in
the absence of bad faith on its part, the Trustee may conclusively rely, as to the truth of the statements and the correctness of the opinions expressed
therein, upon certificates or opinions furnished to the Trustee and conforming to the requirements of this Indenture. However, the Trustee shall examine the certificates and opinions to determine
whether or not they conform to the requirements of this Indenture. 

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

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

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

    (iii) the
Trustee shall not be liable with respect to any action it takes or omits to take in good faith in accordance with a direction received by it pursuant to
Section 6.05 hereof. 

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

    (e) No
provision of this Indenture shall require the Trustee to expend or risk its own funds or incur any liability. The Trustee shall be under no obligation to
exercise any of its rights and powers under this Indenture at the request of any Holders, unless such Holder shall have offered to the Trustee security and indemnity satisfactory to it against any
loss, liability or expense. 

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

 
 

Section 7.02.  Rights Of Trustee.    
  

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

    (b) Before
the Trustee acts or refrains from acting, it may require an Officers' Certificate or an Opinion of Counsel or both. The Trustee shall not be liable for any
action it takes or omits to take in good faith in reliance on such Officers' Certificate or Opinion of Counsel. The Trustee may consult with counsel and the written advice of such counsel or any
Opinion of Counsel shall be full and 

36

 

complete authorization and protection from liability in respect of any action taken, suffered or omitted by it hereunder in good faith and in reliance thereon. 

    (c) The
Trustee may act through its attorneys and agents and shall not be responsible for the misconduct or negligence of any agent appointed with due care. 

    (d) The
Trustee shall not be liable for any action it takes or omits to take in good faith that it believes to be authorized or within the rights or powers conferred
upon it by this Indenture. 

    (e) Unless
otherwise specifically provided in this Indenture, any demand, request, direction or notice from the Company shall be sufficient if signed by an Officer of
the Company. 

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

 
 

Section 7.03.  Individual Rights Of Trustee.    
  

    The Trustee in its individual or any other capacity may become the owner or pledgee of Notes and may otherwise deal with the Company or any Affiliate of the
Company with the same rights it would have if it were not Trustee. However, in the event that the Trustee acquires any conflicting interest it must eliminate such conflict within 90 days, apply
to the SEC for permission to continue as trustee or resign. Any Agent may do the same with like rights and duties. The Trustee is also subject to Sections 7.10 and 7.11 hereof. 

 
 

Section 7.04.  Trustee's Disclaimer.    
  

    The Trustee shall not be responsible for and makes no representation as to the validity or adequacy of this Indenture or the Notes, it shall not be accountable
for the Company's use of the proceeds from the Notes or any money paid to the Company or upon the Company's direction under any provision of this Indenture, it shall not be responsible for the use or
application of any money received by any Paying Agent other than the Trustee, and it shall not be responsible for any statement or recital herein or any statement in the Notes or any other document in
connection with the sale of the Notes or pursuant to this Indenture other than its certificate of authentication. 

 
 

Section 7.05.  Notice Of Defaults.    
  

    If a Default or Event of Default occurs and is continuing and if it is known to the Trustee, the Trustee shall mail to Holders of Notes a notice of the Default
or Event of Default within 90 days after the Trustee obtains such knowledge. Except in the case of a Default or Event of Default in payment of principal of, premium, if any, or interest on any
Note, the Trustee may withhold the notice if and so long as a committee of its Responsible Officers in good faith determines that withholding the notice is in the interests of the Holders of the
Notes. The Trustee shall not be required to take notice or be deemed to have notice of any Default or Event of Default hereunder (except failure by the Company to make any payments to the Trustee
required to be made hereunder) unless the Trustee is specifically notified in writing of such Default or Event of Default by the Company or by a Holder and, in the absence of such notice, the Trustee
may conclusively assume that no Default or Event of Default has occurred and is continuing. 

 
 

Section 7.06.  Reports By Trustee To Holders Of The Notes.    
  

    Within 60 days after each May 15 beginning with the May 15 following the date of this Indenture, and for so long as Notes remain
outstanding, the Trustee shall mail to the Holders of the Notes a brief report dated as of such reporting date that complies with TIA § 313(a) (but if no event described in 

37

 

TIA § 313(a) has occurred within the twelve months preceding the reporting date, no report need be transmitted). The Trustee also shall comply with TIA § 313(b)(2). The Trustee
shall also transmit by mail all reports as required by TIA § 313(c). 

    A
copy of each report at the time of its mailing to the Holders of Notes shall be mailed to the Company and filed with the SEC. 

 
 

Section 7.07.  Compensation And Indemnity.    
  

    The Company shall pay to the Trustee from time to time agreed upon compensation for its acceptance of this Indenture and services hereunder. The Trustee's
compensation shall not be limited by any law on compensation of a trustee of an express trust. The Company shall reimburse the Trustee promptly upon request for all reasonable disbursements, advances
and expenses incurred or made by it in addition to the compensation for its services. If so agreed, such expenses shall include the reasonable compensation, disbursements and expenses of the Trustee's
agents and counsel. 

    The
Company shall indemnify the Trustee against any and all losses, liabilities or reasonable expenses incurred by it arising out of or in connection with the acceptance or
administration of its duties under this Indenture, including the costs and expenses of enforcing this Indenture against the Company (including this Section 7.07) and defending itself against
any claim (whether asserted by the Company or any Holder or any other person) or liability in connection with the exercise or performance of any of its powers or duties hereunder, except to the extent
any such loss, liability or expense may be attributable to its negligence or bad faith. The Trustee shall notify the Company promptly of any claim for which it may seek indemnity. Failure by the
Trustee to so notify the Company shall not relieve the Company of its obligations hereunder. The Company shall defend the claim and the Trustee shall cooperate in the defense. The Trustee may have
separate counsel and the Company shall pay the reasonable fees and expenses of such counsel. The Company need not pay for any settlement made without its consent, which consent shall not be
unreasonably withheld. 

    The
obligations of the Company under this Section 7.07 shall survive the satisfaction and discharge of this Indenture. 

    To
secure the Company's payment obligations in this Section, the Trustee shall have a Lien prior to the Notes on all money or property held or collected by the Trustee, except that
held in trust to pay
principal and interest on particular Notes. Such Lien shall survive the satisfaction and discharge of this Indenture. 

    When
the Trustee incurs expenses or renders services after an Event of Default specified in Section 6.01(f) or (g) hereof occurs, the expenses and the compensation for
the services (including the fees and expenses of its agents and counsel) are intended to constitute expenses of administration under any Bankruptcy Law. 

 
 

Section 7.08.  Replacement Of Trustee.    
  

    A resignation or removal of the Trustee and appointment of a successor Trustee shall become effective only upon the successor Trustee's acceptance of
appointment as provided in this Section. 

    The
Trustee may resign in writing at any time and be discharged from the trust hereby created by so notifying the Company. The Holders of Notes of a majority in principal amount of
the then outstanding Notes may remove the Trustee by so notifying the Trustee and the Company in writing. The Company may remove the Trustee if: 

    (a) the
Trustee fails to comply with Section 7.10 hereof; 

    (b) the
Trustee is adjudged a bankrupt or an insolvent or an order for relief is entered with respect to the Trustee under any Bankruptcy Law; 

38

  

    (c) a
Custodian or public officer takes charge of the Trustee or its property; or 

    (d) the
Trustee becomes incapable of acting. 

    If
the Trustee resigns or is removed or if a vacancy exists in the office of Trustee for any reason, the Company shall promptly appoint a successor Trustee. Within one year after the
successor Trustee takes office, the Holders of a majority in principal amount of the then outstanding Notes may appoint a successor Trustee to replace the successor Trustee appointed by the Company. 

    If
a successor Trustee does not take office within 60 days after the retiring Trustee resigns or is removed, the retiring Trustee, the Company, or the Holders of Notes of at
least 10% in principal amount of the then outstanding Notes may petition any court of competent jurisdiction for the appointment of a successor Trustee. 

    If
the Trustee, after written request by any Holder of a Note who has been a Holder of a Note for at least six months, fails to comply with Section 7.10, such Holder of a Note
may petition any court of competent jurisdiction for the removal of the Trustee and the appointment of a successor Trustee. 

    A
successor Trustee shall deliver a written acceptance of its appointment to the retiring Trustee and to the Company. Thereupon, the resignation or removal of the retiring Trustee
shall become effective, and the successor Trustee shall have all the rights, powers and duties of the Trustee under this Indenture. The successor Trustee shall mail a notice of its succession to
Holders of the Notes. The retiring Trustee shall promptly transfer all property held by it as Trustee to the successor Trustee, provided all sums owing to the Trustee hereunder have been paid and
subject to the Lien provided for in Section 7.07 hereof. Notwithstanding replacement of the Trustee pursuant to this Section 7.08, the Company's obligations under Section 7.07
hereof shall continue for the benefit of the retiring Trustee. 

 
 

Section 7.09.  Successor Trustee By Merger, Etc.    
  

    If the Trustee consolidates, merges or converts into, or transfers all or substantially all of its corporate trust business to, another corporation, the
successor corporation without any further act shall be the successor Trustee. 

 
 

Section 7.10.  Eligibility; Disqualification.    
  

    There shall at all times be a Trustee hereunder that is a corporation organized and doing business under the laws of the United States of America or of any
state thereof that is authorized under such laws to exercise corporate trustee power, that is subject to supervision or examination by federal or state authorities and that has (or is wholly owned by
an entity having) a combined capital and surplus of at least $100 million as set forth in its most recent published annual report of condition. 

    This
Indenture shall always have a Trustee who satisfies the requirements of TIA § 310(a)(1), (2) and (5). The Trustee is subject to TIA § 310(b). 

 
 

Section 7.11.  Preferential Collection Of Claims Against Company.    
  

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

39

 
 
 

ARTICLE 8.
  LEGAL DEFEASANCE AND COVENANT DEFEASANCE    
  

 
  Section 8.01.  Option To Effect Legal Defeasance Or Covenant Defeasance.    
  

    The Company may, at the option of its Board of Directors evidenced by a resolution set forth in an Officers' Certificate, at any time, elect to have either
Section 8.02 or 8.03 hereof be applied to all outstanding Notes upon compliance with the conditions set forth below in this Article 8. 

 
 

Section 8.02.  Legal Defeasance And Discharge.    
  

    Upon the Company's exercise under Section 8.01 hereof of the option applicable to this Section 8.02, the Company shall, subject to the
satisfaction of the conditions set forth in Section 8.04 hereof, be deemed to have been discharged from its obligations with respect to all outstanding Notes on the date the conditions set
forth below are satisfied (hereinafter, "Legal Defeasance"). For this purpose, Legal Defeasance means that the Company shall be deemed to have paid and
discharged the entire Indebtedness represented by the outstanding Notes, which shall thereafter be deemed to be "outstanding" only for the purposes of Section 8.05 hereof and the other Sections
of this Indenture referred to in (a) and (b) below, and to have satisfied all its other obligations under such Notes and this Indenture (and the Trustee, on demand of and at the expense
of the Company, shall execute proper instruments acknowledging the same), except for the following provisions which shall survive until otherwise terminated or discharged hereunder: (a) the
rights of Holders of outstanding Notes to receive solely from the trust fund described in Section 8.04 hereof, and as more fully set forth in such Section, payments in respect of the principal
of, premium, if any, and interest on such Notes when such payments are due, (b) the Company's obligations with respect to such Notes under Article 2 and Section 4.02 hereof,
(c) the rights, powers, trusts, duties and immunities of the Trustee hereunder and the Company's obligations in connection therewith and (d) this Article 8. Subject to compliance
with this Article 8, the Company may exercise its option under this Section 8.02 notwithstanding the prior exercise of its option under Section 8.03 hereof. 

 
 

Section 8.03.  Covenant Defeasance.    
  

    Upon the Company's exercise under Section 8.01 hereof of the option applicable to this Section 8.03, the Company shall, subject to the
satisfaction of the conditions set forth in Section 8.04 hereof, be released from its obligations under the covenants contained in Sections 4.03, 4.04, 4.05, 4.07 through 4.16, inclusive, and
5.01 with respect to the outstanding Notes on and after the date the conditions set forth in Section 8.04 are satisfied (hereinafter, "Covenant
Defeasance"), and the Notes shall thereafter be deemed not "outstanding" for the purposes of any direction, waiver, consent or declaration or act of Holders (and the
consequences of any thereof) in connection with such covenants, but shall continue to be deemed "outstanding" for all other purposes hereunder (it being understood that such Notes shall not be deemed
outstanding for accounting purposes). For this purpose, Covenant Defeasance means that, with respect to the outstanding Notes, the Company may omit to comply with and shall have no liability in
respect of any term, condition or limitation set forth in any such covenant, whether directly or indirectly, by reason of any reference elsewhere herein to any such covenant or by reason of any
reference in any such covenant to any other provision herein or in any other document and such
omission to comply shall not constitute a Default or an Event of Default under Section 6.01 hereof, but, except as specified above, the remainder of this Indenture and such Notes shall be
unaffected thereby. In addition, upon the Company's exercise under Section 8.01 hereof of the option applicable to this Section 8.03 hereof, subject to the satisfaction of the conditions
set forth in Section 8.04 hereof, Sections 6.01(c) through 6.01(e) hereof shall not constitute Events of Default. 

40

 

 
 

Section 8.04.  Conditions To Legal Or Covenant Defeasance.    
  

    The following shall be the conditions to the application of either Section 8.02 or 8.03 hereof to the outstanding Notes: 

    In
order to exercise either Legal Defeasance or Covenant Defeasance: 

    (a) the
Company must irrevocably deposit with the Trustee, in trust, for the benefit of the Holders of the Notes, cash in U.S. dollars, non-callable
Government Securities, or a combination thereof, in such amounts as will be sufficient, in the opinion of a nationally recognized firm of independent public accountants, to pay the principal of,
premium, if any, Loan Fees, and interest on the outstanding Notes on the stated maturity or on the applicable redemption date, as the case may be, and the Company must specify whether the Notes are
being defeased to maturity or to a particular redemption date; 

    (b) in
the case of an election to have Section 8.02 hereof apply, the Company shall have delivered to the Trustee an opinion of counsel in the United States
reasonably acceptable to the Trustee confirming that (A) the Company has received from, or there has been published by, the Internal Revenue Service a ruling or (B) since the date of
this Indenture, there has been a change in the applicable federal income tax law, in either case to the effect that, and based thereon such opinion of counsel shall confirm that, the Holders of the
outstanding Notes will not recognize income, gain or loss for federal income tax purposes as a result of such Legal Defeasance and will be subject to federal income tax on the same amounts, in the
same manner and at the same times as would have been the case if such Legal Defeasance had not occurred; 

    (c) in
the case of an election to have Section 8.03 hereof apply, the Company shall have delivered to the Trustee an opinion of counsel in the United States
reasonably acceptable to the Trustee confirming that the Holders of the outstanding Notes will not recognize income, gain or loss for federal income tax purposes as a result of such Covenant
Defeasance and will be subject to federal income tax on the
same amounts, in the same manner and at the same times as would have been the case if such Covenant Defeasance had not occurred; 

    (d) no
Default or Event of Default shall have occurred and be continuing on the date of such deposit (other than a Default or Event of Default resulting from the
borrowing of funds to be applied to such deposit); and 

    (e) the
Company shall have delivered to the Trustee an Officers' Certificate and an opinion of counsel, together stating that all conditions precedent provided for
relating to the Legal Defeasance or the Covenant Defeasance have been complied with. 

 
 

Section 8.05.  Deposited Money And Government Securities To Be Held In Trust, Other Miscellaneous Provisions.    
  

    Subject to Section 8.06 hereof, all money and non-callable Government Securities (including the proceeds thereof) deposited with the Trustee
(or other qualifying trustee, collectively for purposes of this Section 8.05, the "Trustee") pursuant to Section 8.04 hereof in respect of
the outstanding Notes shall be held in trust and applied by the Trustee, in accordance with the provisions of such Notes and this Indenture, to the payment, either directly or through any Paying Agent
(including the Company acting as Paying Agent) as the Trustee may determine, to the Holders of such Notes of all sums due and to become due thereon in respect of principal, premium, if any, Loan Fees,
and interest, but such money need not be segregated from other funds except to the extent required by law. 

    The
Company shall pay and indemnify the Trustee against any tax, fee or other charge imposed on or assessed against the cash or non-callable Government Securities
deposited pursuant to Section 8.04 hereof or the principal and interest received in respect thereof other than any such tax, fee or other charge which by law is for the account of the Holders
of the outstanding Notes. 

41

 

    Anything in this Article 8 to the contrary notwithstanding, the Trustee shall deliver or pay to the Company from time to time upon the request of the Company any money or
non-callable Government Securities held by it as provided in Section 8.04 hereof which, in the opinion of a nationally recognized firm of independent public accountants expressed in
a written certification thereof delivered to the Trustee (which may be the opinion delivered under Section 8.04(a) hereof), are in excess of the amount
thereof that would then be required to be deposited to effect an equivalent Legal Defeasance or Covenant Defeasance. 

 
 

Section 8.06.  Repayment To Company.    
  

    Any money deposited with the Trustee or any Paying Agent pursuant to Section 8.04, or then held by the Company, in trust for the payment of the
principal of, premium, if any, Loan Fees, or interest on any Note and remaining unclaimed for two years after such principal, premium, if any, Loan Fees, or interest has become due and payable shall
be paid to the Company on its request or (if then held by the Company) shall be discharged from such trust; and the Holder of such Note shall thereafter, as an unsecured creditor, look only to the
Company for payment thereof, and all liability of the Trustee or such Paying Agent with respect to such trust money, and all liability of the Company as trustee thereof, shall thereupon cease;
provided, however, that the Trustee or such Paying Agent, before being required to make any such repayment, may at the expense of the Company cause to be published once, in a newspaper published in
the English language, customarily published on each Business Day and of general circulation in the Borough of Manhattan, the City of New York, notice that such money remains unclaimed and that, after
a date specified therein, which shall not be less than 30 days from the date of such notification or publication, any unclaimed balance of such money then remaining will be repaid to the
Company. 

 
 

Section 8.07.  Reinstatement.    
  

    If the Trustee or Paying Agent is unable to apply any United States dollars or non-callable Government Securities in accordance with
Section 8.04 hereof, as the case may be, by reason of any order or judgment of any court or governmental authority enjoining, restraining or otherwise prohibiting such application, then the
Company's obligations under this Indenture and the Notes shall be revived and reinstated as though no deposit had occurred pursuant to Section 8.04 hereof until such time as the Trustee or
Paying Agent is permitted to apply all such money in accordance with Section 8.04 hereof, as the case may be; provided, however, that, if the Company makes any payment of principal of, premium,
if any, or interest on any Note following the reinstatement of its obligations, the Company shall be subrogated to the rights of the Holders of such Notes to receive such payment from the money held
by the Trustee or Paying Agent. 

 
 

ARTICLE 9.
  AMENDMENT, SUPPLEMENT AND WAIVER    
  

 
  Section 9.01.  Without Consent Of Holders Of Notes.    
  

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

    (a) to
cure any ambiguity, defect or inconsistency; 

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

    (c) to
provide for the assumption of the Company's obligations to Holders of the Notes by a successor to the Company pursuant to Article 5 hereof; 

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

42

 

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

    Upon
the request of the Company accompanied by an Officers' Certificate authorizing the execution of any such amended or supplemental Indenture, and upon receipt by the Trustee of
such documents described in Section 7.02 hereof as the Trustee may request, the Trustee shall join with the Company in the execution of any amended or supplemental Indenture authorized or
permitted by the terms of this Indenture and make any further appropriate agreements and stipulations that may be therein contained, but the Trustee shall not be obligated to enter into such amended
or supplemental Indenture that affects its own rights, duties or immunities under this Indenture or otherwise. 

 
 

Section 9.02.  With Consent Of Holders Of Notes.    
  

    Except as provided below in this Section 9.02, the Company and the Trustee may amend or supplement this Indenture and the Notes may be amended or
supplemented with the consent of the Holders of at least a majority in principal amount of the Notes then outstanding (including, without limitation, consents obtained in connection with a tender
offer or exchange offer for, or purchase of, the Notes), and any existing Default or Event of Default (other than a Default or Event of Default in the payment of the principal of, premium, if any,
Loan Fees, or interest on the Notes, except a payment default resulting from an acceleration that has been rescinded) or compliance with any provision of this Indenture or the Notes may be waived with
the consent of the Holders of a majority in principal amount of the then outstanding Notes (including, without limitation, consents obtained in connection with a tender offer or exchange offer for, or
purchase of, the Notes). Section 2.08 hereof shall determine which Notes are considered to be "outstanding" for purposes of this Section 9.02. 

    Upon
the request of the Company accompanied by a resolution of its Board of Directors authorizing the execution of any such amended or supplemental Indenture, and upon the filing with
the Trustee of evidence satisfactory to the Trustee of the consent of the Holders of Notes as aforesaid, and upon receipt by the Trustee of any applicable documents described in Section 7.02
hereof, the Trustee shall join with the Company in the execution of such amended or supplemental Indenture unless such amended or supplemental Indenture directly affects the Trustee's own rights,
duties or immunities under this Indenture or otherwise, in which case the Trustee may in its discretion, but shall not be obligated to, enter into such amended or supplemental Indenture. 

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

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

    (a) reduce
the principal amount of Notes whose Holders must consent to an amendment, supplement or waiver; 

    (b) reduce
the principal of or change the fixed maturity of any Note; 

    (c) reduce
the rate of or change the time for payment of interest on any Note; 

43

 

    (d) waive a Default or Event of Default in the payment of principal of or premium, if any, Loan Fees, or interest on the Notes (except a rescission of acceleration of
the Notes by the Holders of at least a majority in aggregate principal amount of the Notes and a waiver of the payment default that resulted from such acceleration); 

    (e) make
any Note payable in money other than that stated in the Notes; 

    (f)  make
any change in the provisions of this Indenture relating to waivers of past Defaults or the rights of Holders of Notes to receive payments of principal of or
premium, if any, or interest on the Notes; 

    (g) waive
a redemption payment with respect to any Note; or 

    (h) make
any change in Section 6.04 or 6.07 hereof or in the foregoing amendment and waiver provisions. 

 
 

Section 9.03.  Compliance With Trust Indenture Act.    
  

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

 
 

Section 9.04.  Revocation And Effect Of Consents.    
  

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

 
 

Section 9.05.  Notation On Or Exchange Of Notes.    
  

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

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

 
 

Section 9.06.  Trustee To Sign Amendments, Etc.    
  

    The Trustee shall sign any amended or supplemental Indenture authorized pursuant to this Article 9 if the amendment or supplement does not adversely
affect the rights, duties, liabilities or immunities of the Trustee. In executing any amended or supplemental indenture, the Trustee shall be entitled to receive and (subject to Section 7.01
hereof) shall be fully protected in relying upon, in addition to the documents required by Section 12.04 hereof, an Officers' Certificate and an Opinion of Counsel together stating that the
execution of such amended or supplemental indenture is authorized or permitted by this Indenture. 

44

  

 
 

ARTICLE 10.
  COLLATERAL AND SECURITY    
  

 
  Section 10.01.  Collateral Agreements.    
  

    The due and punctual payment of the principal of, premium, if any, Loan Fees, and interest on the Notes (including the Additional Notes) when and as the same
shall be due and payable, whether on an Interest Payment Date, at maturity, by acceleration, repurchase, redemption or otherwise, and interest on the overdue principal of, premium, if any, Loan Fees,
and interest (to the extent permitted by law), if any, on the Notes and performance of all other obligations of the Company to the Holders, the Trustee under this Indenture and the Notes, and the
Collateral Agent under the Collateral Agreements, according to the terms hereunder or thereunder, shall be secured as provided in the Collateral Agreements. Each Holder of Notes, by its acceptance
thereof, consents and agrees to the terms of the Collateral Agreements as the same may be in effect or may be amended from time to time in accordance with their respective terms and the terms hereof
and authorizes and directs the Trustee, as Collateral Agent, to enter into the Collateral Agreements and to perform its obligations and exercise its rights thereunder in accordance therewith. The
Company shall deliver to the Trustee copies of all documents delivered to the Collateral Agent pursuant to the Collateral Agreements, and shall do or cause to be done all such acts and things as may
be necessary or proper, or as may be required by the provisions of the Collateral Agreements, to assure and confirm to the Trustee and the Collateral Agent the security interest in and Lien on the
Collateral, by the Collateral Agreements or any part thereof, as from time to time constituted, so as to render the same available for the security and benefit of this Indenture and of the Notes,
according to the intent and purposes herein expressed. Subject to Section 10.02(c), the Company shall take, or shall cause its Restricted Subsidiaries to take, upon request of the Trustee, any
and all actions reasonably required to cause the Collateral Agreements to create and maintain, as security for the obligations of the Company, (i) a valid and enforceable perfected first
priority Lien in and on all the First Lien Collateral [Series A only] in favor of the Collateral Agent for the benefit of
the Holders, the Collateral Agent and the Trustee, superior to and prior to the rights of all third persons and subject to no other Liens other than, to the extent permitted by the Collateral
Agreements, Permitted Liens, and (ii) a valid and enforceable perfected Lien in and on all the Second Lien Collateral [and Third Lien
Collateral], in favor of the Collateral Agent for the benefit of the Holders, the Collateral Agent and the Trustee, subject to no other Liens other than, to the
extent permitted by this Indenture and the Collateral Agreements, Permitted Liens. 

 
 

Section 10.02.  Recording and Opinions.    
  

    (a) The
Company shall furnish to the Trustee within three months after the execution and delivery of this Indenture an Opinion of Counsel, subject to customary
assumptions, limitations and exceptions, either (i) stating that in the opinion of such counsel all action has been taken with respect to the recording, registering, filing and perfection of
this Indenture, financing statements, and other instruments necessary to make effective the Liens intended to be created by the Collateral Agreements, or (ii) stating that, in the opinion of
such counsel, no such action is necessary to make such Liens effective. 

    (b) If
required by the TIA, the Company shall furnish to the Collateral Agent and the Trustee within five Business Days after each anniversary of the Issue Date an
Opinion of Counsel, dated as of such date, subject to customary assumptions, limitations and exceptions, either (i) (A) stating that, in the opinion of such counsel, all action has been taken
with respect to the recording, registering, filing, perfecting, re-recording, re-registering and refiling of all supplemental indentures, financing statements, continuation
statements and other instruments of further assurance as is necessary to maintain the Liens of the Collateral Agreements, and (B) stating that, based on relevant laws as in effect on the date
of such Opinion of Counsel, all financing statements and continuation statements have been executed and filed that are necessary as of such date fully to preserve and protect, to the extent such 

45

 

protection and preservation are possible by filing, the rights of the Holders and the Collateral Agent and the Trustee hereunder and under the Collateral Agreements with respect to the Liens in the
Collateral, or (ii) stating that, in the opinion of such counsel, no such action is necessary to maintain such Liens. 

    (c) Notwithstanding
any other provision of this Indenture, any Collateral Agreement or any other agreement or instrument, other than the Required Filings, neither the
Company, its Subsidiaries nor any other Person shall have any obligation to record, file, re-record or re-file (or cause any Person to take any such action) this Indenture, any
Collateral Agreement or any other agreement, instrument, document or other writing of any kind in order to "make effective" or "maintain" (in each case for purposes of Section 314(b) of the
TIA) any Lien in connection with this Indenture, and "the lien intended to be created" by this Indenture (for purposes of Section 314(b) of the TIA) is hereby deemed to be so limited. The term
"Required Filings" means recordings, filings, re-recordings and re-filings of financing statements or other instruments in any
jurisdiction designated in writing to the Trustee by Holders of at least 25% in aggregate principal amount of the outstanding Notes, and initially means filings of the financing statements described
on Schedule 10.02 attached hereto. 

 
 

Section 10.03.  Release of Collateral.    
  

    (a) Subject
to this Article 10, and the terms and conditions set forth in the Collateral Agreements, Collateral shall be released from the Lien and security
interest created by the Collateral Agreements (i) upon the sale or other disposition thereof to the extent consummated pursuant to and in compliance with the requirements of Section 4.10
or one of the exceptions to the definition of the term "Asset Sale" set forth in such definition, (ii) in the case of Collateral constituting cash or Cash Equivalents, upon the investment
thereof pursuant to and in compliance with the other terms of this Indenture; (iii) with respect to Net Proceeds, upon reinvestment thereof or use thereof to repay Indebtedness or make an Asset
Sale Offer, in each case pursuant to and in compliance with Section 4.10 and any relevant Collateral Agreements, and (iv) as permitted under Sections      and
      of the Security Agreement. [In addition, Second Lien Collateral [and Third Lien Collateral] shall be released from the
Lien and security interest created by the Collateral Agreements if and to the extent that the Intercreditor Agreement obligates the Collateral Agent to release such
Collateral.]

    (b) At
any time when a Default or Event of Default shall have occurred and be continuing and the maturity of the Notes shall have been accelerated (whether by
declaration or otherwise), no release of Collateral pursuant to the provisions of the Collateral Agreements shall be effective as against the Holders. 

    (c) The
release of any Collateral from the terms of this Indenture and the Collateral Agreements shall not be deemed to impair the security under this Indenture in
contravention of the provisions hereof if and to the extent the Collateral is released pursuant to the terms of such Collateral Agreements. 

 
 

Section 10.04.  Certificates of the Company.    
  

    The Company shall furnish to the Trustee and the Collateral Agent, prior to each proposed release of Collateral pursuant to the Collateral Agreements, an
Officers' Certificate stating that such release complies with the terms of this Indenture. The Trustee may, to the extent permitted by Sections 7.01 and 7.02 hereof, accept as conclusive evidence of
compliance with the foregoing provisions the statements contained in such Officers' Certificate. 

 
 

Section 10.05.  Certificates of the Trustee.    
  

    In the event that the Company wishes to release Collateral in accordance with the Collateral Agreements and has delivered the certificates and documents
required by such Collateral Agreements 

46

 

and Sections 10.03 and 10.04 hereof, the Trustee shall determine whether it has received all documentation required by TIA Section 314(d) in connection with such release and, based on such
determination, shall deliver a certificate to the Collateral Agent setting forth such determination. 

 
 

Section 10.06.  Authorization of Actions to be Taken by the Trustee Under the Collateral Agreements.    
  

    Subject to the provisions of Section 7.01 and 7.02 hereof, the Trustee may, in its sole discretion and without the consent of the Holders, direct, on
behalf of the Holders, the Collateral Agent to take all actions it deems necessary or appropriate in order to (a) enforce any of the terms of the Collateral Agreements and (b) collect
and receive any and all amounts payable in respect of the Obligations of the Company hereunder. The Trustee shall have power to institute and maintain such suits and proceedings as it may deem
expedient to prevent any impairment of the Collateral by any acts that may be unlawful or in violation of the Collateral Agreements or this Indenture, and such suits and proceedings as the Trustee may
deem expedient to preserve or protect its interests and the interests of the Holders in the Collateral (including power to institute and maintain suits or proceedings to restrain the enforcement of or
compliance with any legislative or other governmental enactment, rule or order that may be unconstitutional or otherwise invalid if the enforcement of, or compliance with, such enactment, rule or
order would impair the Liens under the Collateral Agreements or be prejudicial to the interests of the Holders or of the Trustee). 

 
 

Section 10.07.  Authorization of Receipt of Funds by the Trustee Under the Collateral Agreements.    
  

    The Trustee is authorized to receive any funds for the benefit of the Holders distributed under the Collateral Agreements, and to make further distributions of
such funds to the Holders according to the provisions of this Indenture. 

 
 

Section 10.08.  Termination of Security Interest.    
  

    Upon the payment in full of all Obligations of the Company under this Indenture and the Notes, or upon Legal Defeasance in accordance with Section 8.02,
the Trustee shall, at the request of the Company, deliver a certificate to the Collateral Agent (if other than the Trustee) stating that such Obligations have been paid in full, and instruct the
Collateral Agent to release the Liens pursuant to this Indenture and the Collateral Agreements. 

 
 

ARTICLE 11.
  SATISFACTION AND DISCHARGE    
  

 
  Section 11.01.  Satisfaction And Discharge Of Indenture.    
  

    This Indenture shall upon Company request cease to be of further effect (except as to surviving rights of registration of transfer or exchange of Notes, as
expressly provided for in this Indenture) as to all outstanding Notes, and the Trustee, at the expense of the Company, shall, upon payment of all amounts due to the Trustee under Section 7.07
hereof, execute proper instruments acknowledging satisfaction and discharge of this Indenture when 

    (a) either

    (1) all
Notes theretofore authenticated and delivered (other than (i) Notes which have been destroyed, lost or stolen and which have been replaced as provided in
Section 2.07 hereof or paid and (ii) Notes for whose payment money or Government Securities have theretofore been deposited in trust with the Trustee or any Paying Agent or segregated
and held in trust by the Company and thereafter repaid to the Company or discharged from such trust, as provided in Section 2.04 hereof) have been delivered to the Trustee for cancellation, or 

    (2) all
such Notes not theretofore delivered to the Trustee for cancellation 

47

 

    (A) have
become due and payable, or 

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

    (C) are
to be called for redemption within one year under arrangements satisfactory to the Trustee for the serving of notice of redemption by the Trustee in the name,
and at the expense, of the Company 

and
the Company, in the case of clause (2)(A), (2)(B) or (2)(C) above, has irrevocably deposited or caused to be deposited with the Trustee funds in an amount sufficient to pay and discharge
the entire Indebtedness on such Notes not theretofore delivered to the Trustee for cancellation, for principal of, premium, if any, Loan Fees, and interest to the date of such deposit (in the case of
Notes which have become due and payable) or to the final Stated Maturity or Redemption Date, as the case may be, together with the Company order irrevocably directing the Trustee to apply such funds
to the payment thereof at maturity or redemption, as the case may be; 

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

    (c) the
Company has delivered to the Trustee an Officers' Certificate and an Opinion of Counsel, which, taken together, state that all conditions precedent herein
relating to the satisfaction and discharge of this Indenture have been complied with. 

    Notwithstanding
the satisfaction and discharge of this Indenture, the obligations of the Company to the Trustee under Section 7.07 hereof and, if the money shall have been
deposited with the Trustee pursuant to this Section, the obligations of the Trustee under Section 11.02 hereof and the last paragraph of Section 2.04 hereof and the Trustee's rights
under Article 7 hereof shall survive. 

 
 

Section 11.02.  Application Of Trust Money.    
  

    Subject to the provisions of the last paragraph of Section 2.04 hereof, all money deposited with the Trustee pursuant to Section 11.01 hereof
shall be held in trust and applied by it, in accordance with the
provisions of the Notes and this Indenture, to the payment, either directly or through any Paying Agent (including the Company acting as its own Paying Agent) as the Trustee may determine, to the
Persons entitled thereto, of the principal and interest for whose payment such money has been deposited with the Trustee. 

 
 

ARTICLE 12.
  MISCELLANEOUS    
  

 
  Section 12.01.  Trust Indenture Act Controls.    
  

    If any provision of this Indenture limits, qualifies or conflicts with the duties imposed by TIA § 318(c), the imposed duties shall control. 

 
 

Section 12.02.  Notices.    
  

    Any notice or communication by the Company or the Trustee to the other is duly given if in writing and delivered in Person or mailed by first class mail
(registered or certified, return receipt 

48

 

requested), telex, telecopier or overnight air courier guaranteeing next day delivery, to the other's address set forth below: 

	If to the Company:	 	 
	

CRIIMI MAE Inc.

11200 Rockville Pike

Rockville, Maryland 20852

Telecopier No.: (301) 231-0334

Attention: Chief Financial Officer

	
 	

 
	

If to the Trustee:	
 	

 
	
[Wells Fargo Bank, N.A.]	
 	

 
	  
	 	 
	  
	 	 
	  
	 	 
	  
	 	 
	Telecopier No.:	 	  
	 	 
	Attention: Corporate Trust Administration	 	 

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

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

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

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

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

 
 

Section 12.03.  Communication By Holders Of Notes With Other Holders Of Notes.    
  

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

 
 

Section 12.04.  Certificate And Opinion As To Conditions Precedent.    
  

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

    (a) an
Officers' Certificate in form and substance reasonably satisfactory to the Trustee (which shall include the statements set forth in Section 12.05 hereof)
stating that, in the opinion of the signers, 

49

 

all conditions precedent and covenants, if any, provided for in this Indenture relating to the proposed action have been satisfied; and 

    (b) an
Opinion of Counsel in form and substance reasonably satisfactory to the Trustee (which shall include the statements set forth in Section 12.05 hereof)
stating that, in the opinion of such counsel, all such conditions precedent and covenants have been satisfied. 

 
 

Section 12.05.  Statements Required In Certificate Or Opinion.    
  

    Each certificate or opinion with respect to compliance with a condition or covenant provided for in this Indenture (other than a certificate provided pursuant
to TIA § 314(a)(4)) shall comply with the provisions of TIA § 314(e) and 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 to express an informed opinion
as to whether or not such covenant or condition has been satisfied; and 

    (d) a
statement as to whether or not, in the opinion of such Person, such condition or covenant has been complied with. 

 
 

Section 12.06.  Rules By Trustee And Agents.    
  

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

 
 

Section 12.07.  No Personal Liability Of Directors, Officers, Employees And Stockholders.    
  

    No director, officer, employee, incorporator or stockholder of the Company or any Subsidiary of the Company, as such, shall have any liability for any
obligations of the Company under the Notes, this Indenture or for any claim based on, in respect of, or by reason of, such obligations or their creation. Each Holder of Notes by accepting a Note
waives and releases all such liability. The waiver and release are part of the consideration for issuance of the Notes. 

 
 

Section 12.08.  Governing Law.    
  

    THE INTERNAL LAW OF THE STATE OF NEW YORK SHALL GOVERN AND BE USED TO CONSTRUE THIS INDENTURE, THE NOTES AND THE COLLATERAL AGREEMENTS. 

 
 

Section 12.09.  No Adverse Interpretation Of Other Agreements.    
  

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

 
 

Section 12.10.  Successors.    
  

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

50

 

 
 

Section 12.11.  Severability.    
  

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

 
 

Section 12.12.  Counterpart Originals.    
  

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

 
 

Section 12.13.  Table Of Contents, Headings, Etc.    
  

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

[Signatures
on following page] 

51

 
Dated as of          , 2001 

	 	 	 	 	CRIIMI MAE INC.
	

 	
 	

 	
 	

By:	
 	

  

	 	 	 	 	Name:	 	  

	 	 	 	 	Title:	 	  

	

[WELLS FARGO BANK, N.A.], AS TRUSTEE	
 	

 	
 	

 
	

By:	
 	

  
	
 	

 	
 	

 
	Name:	 	  
	 	 	 	 
	Title:	 	  
	 	 	 	 

S-1

  

 
 

EXHIBIT A
  (Face of Note)    
  

CUSIP                

[11.75% Series A] [20% Series B] Senior Secured Notes due  [2006] [2007]

	No.               	 	$               

 
 

CRIIMI MAE INC.    
  

promises
to pay to                                        
          

or
registered assigns,

        the principal sum [of                          
            Dollars]

[represented by this Global Note]                                
                           

on      , [2006] [2007]. 

Interest Payment Dates: [A: the 15th of each month] [B:         15 and
     15, but excluding         15, 200    ; semi-annually, but
excluding the date 51/2 years after the Issue Date.]

Record Dates: [A: the 1st of each month] [B:        1 and
        1; 1/2 month before each Interest Payment Date]

	 	 	DATED:                    , 200    
	

 	
 	

 
	 	 	CRIIMI MAE INC.
	

 	
 	

 
	 	 	By: 

	 	 	Name: 

	 	 	Title: 

This
is one of the [Global]

Notes referred to in the

within-mentioned Indenture: 

[WELLS FARGO BANK, N.A.],

as Trustee 

	By: 
	 	 
	Name: 
	 	 
	Title: 
	 	 

A-1

 

(Back of Note) 

[11.75% Series A] [20% Series B] Senior Secured Notes due  [2006] [2007]

[if a Global Note, include the following legend:]

UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY, A NEW YORK CORPORATION ("DTC"), NEW YORK, NEW YORK, TO THE COMPANY OR ITS
AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY CERTIFICATE ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR SUCH OTHER NAME AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF
DTC (AND ANY PAYMENT IS MADE TO CEDE & CO., OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY
OR TO ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST HEREIN. TRANSFERS OF THIS GLOBAL NOTE SHALL BE LIMITED TO TRANSFERS IN WHOLE, BUT NOT IN PART,
TO NOMINEES OF DTC OR TO A SUCCESSOR THEREOF OR SUCH SUCCESSOR'S NOMINEE AND TRANSFERS OF PORTIONS OF THIS GLOBAL NOTE SHALL BE
LIMITED TO TRANSFERS MADE IN ACCORDANCE WITH THE RESTRICTIONS SET FORTH IN THE INDENTURE REFERRED TO ON THE REVERSE HEREOF.

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

    1.  INTEREST.  

    (a) CRIIMI
MAE Inc., a Maryland corporation (the "Company"), promises to pay interest on the principal amount of
this Note in the forms and the amounts set forth in this Section 1 of this Note. 

    (b) The
Company shall pay interest on the principal amount of this Note in cash at the rate of [11.75%]
[13%] per annum from the Issue Date until maturity (notwithstanding the foregoing, Additional Notes, whether issued as additional Definitive Notes or as
increases in the principal amount of an outstanding Global Note, shall accrue interest from the date of such issuance or increase). The Company will pay such interest  [A: monthly, on the 15th of each month] [B: on
     15 and      15 of each year, but
excluding     15, 200  ; semi-annually, but excluding the date 51/2 years after the Issue Date], or if any
such day is not a Business Day, on the next succeeding Business Day (each, an "Interest Payment Date"). Interest on the Notes will accrue from the most
recent date to which interest has been paid or, if no interest has been paid, from the Issue Date (notwithstanding the foregoing, Additional Notes, whether issued as additional Definitive Notes or as
increases in the principal amount of an outstanding Global Note, shall accrue interest from the date of such issuance or increase); provided that if this Note is authenticated between a record date
referred to on the face hereof (each, a "Record Date") and the next succeeding Interest Payment Date, interest shall accrue from such next succeeding
Interest Payment Date; provided, further, that the first Interest Payment Date shall be
            , 200  . [B: On the Interest Payment Date that occurs on or about the fifth anniversary of the Issue Date, the Company shall prepay
all interest scheduled to accrue (based upon the principal outstanding on such date) from such Interest Payment Date to the date that is six months after such
date.]

    (c) If
the principal of this Note has not been paid in full on or before each Trigger Date (as defined below), then, in addition to the other interest described in this
Section 1 of this Note, the Company shall pay interest on the principal amount of this Note in respect of each such Trigger Date in the form of "Loan
Fees" at the rate of 1.5% of the outstanding principal amount of this Note as of each such Trigger Date. The Company will pay such Loan Fee on the Interest Payment Date next 

A-2

 

following the applicable Trigger Date. For purposes of this paragraph, "Trigger Date" shall mean each of the following dates:  [48 months], 200
  ;  [54 months], 200  ;
[60 months], 200  . 

    The
Company shall pay each Loan Fee in cash unless it is permitted to pay such Loan Fee by issuance of Additional Notes pursuant to the following sentence. The Company may pay a Loan
Fee by issuance of Additional Notes if the Company, on or not more than 60 days prior to the applicable Interest Payment Date, delivers to the Trustee an Officers' Certificate stating that the
Company has determined that the Company will not have sufficient liquidity on a projected basis to pay such Loan Fee in cash and pay all anticipated operating expenses and other obligations,
including, without limitation, interest, Mandatory Amortization Payments and funding and maintenance of a $7.5 million working capital reserve account. 

    (d) [Series A only:] Notwithstanding Section 1(b) above, if (i) an SPP
Nonpayment Event has occurred and is continuing, and (ii) the Miscellaneous Collateral has not been sold or otherwise disposed of, then, so long as both such events shall continue uncured and
unwaived, interest on the amount of the unpaid Scheduled Principal Paydown that gave rise to such SPP Nonpayment Event shall accrue at the rate of 13.75% per annum instead of the rate of 11.75% per
annum. 

    (d) [Series B only:] In addition to the interest described above, the Company promises to
pay interest in-kind on the principal amount of this Note at the rate of 7% per annum in the form of Additional Notes. The Company will pay such in-kind interest on each
Interest Payment Date, commencing      , 2001. 

    (e) On
each Interest Payment Date on which Additional Notes are to be issued, the Trustee shall, if this Note is a Global Note, record increases on the "Schedule of
Increases of, and Exchanges of Interests in, the Global Note" attached to this Global Note or, if this Note is a Definitive Note, shall authenticate Definitive Additional Notes for original issuance
to each Holder pro rata, in each case in the aggregate principal amount required to pay such interest. Each such Definitive Additional Note and each such increase in the outstanding Global Notes is an
additional obligation of the Company and shall be governed by, and entitled to the benefits of, the Indenture, shall be subject to the terms of the Indenture, shall rank pari passu with and be subject
to the same terms (including the rates and kinds of interest from time to time payable thereon) as this Note (except, as the case may be, with respect to the issuance date and aggregate principal
amount), and shall have the benefit of all Liens securing the Notes. 

    (f)  Notwithstanding
Section 1(b) above, the Company shall pay cash interest on overdue principal at the rate of  [13.75%][15%] per annum. 

    2.  METHOD OF PAYMENT.  The Company will pay interest on
the Notes (except defaulted interest) and principal, premium, if any, and Loan Fees to the Persons who are registered Holders of Notes at the close of business on the Record Date next preceding the
Interest Payment Date, even if such Notes are canceled after such Record Date and on or before such Interest Payment Date, except as provided in Section 2.12 of the Indenture with respect to
defaulted interest. Global Notes will be payable as to principal, premium, if any, Loan Fees, and interest by wire transfer of immediately available funds to the accounts specified by the Global Note
Holder in New York, New York or as otherwise specified by the Global Note Holder. With respect to Definitive Notes, the Company will make all payments of principal, premium, if any, Loan Fees, and
interest by wire transfer of immediately available funds to the accounts specified by the Holders thereof in New York, New York or as otherwise specified by such Holders or, if no such account is
specified, by mailing a check to each such Holder's registered address. Such payment shall be in such coin or currency of the United States of America as at the time of payment is legal tender for
payment of public and private debts. Interest (including loan fees) will be computed on the basis of a 360-day year of twelve 30-day months. 

A-3

 

    3.  PAYING AGENT AND REGISTRAR.  Initially, the Trustee
under the Indenture, will act as Paying Agent and Registrar. The Company or the Trustee may change any Paying Agent or Registrar without notice to any Holder. Neither the Company nor any of its
Subsidiaries may act in any such capacity without the consent of the Trustee. 

    4.  INDENTURE; COLLATERAL.  

    (a) The
Company issued the Notes under an Indenture dated as of            , 2001 (as amended or supplemented from time to time, the
"Indenture") by and between the Company and the Trustee. The terms of the Notes include those stated in the Indenture and those made part of the
Indenture by reference to the Trust Indenture Act of 1939, as amended (15 U.S. Code §§ 77aaa-77bbbb). The Notes are subject to all such terms, and Holders
are referred to the Indenture and such Act for a statement of such terms. To the extent any provision of this Note conflicts with the express provisions of the Indenture, the provisions of the
Indenture shall govern and be controlling. The Notes are obligations of the Company limited in aggregate principal amount to the sum of
(i) [A: $105.0] [B: $      ] million, (ii) the principal amount of any
Additional Notes issued pursuant to Section 1 hereof [B:, and (iii) the principal amount of any Disputed Claims Notes issued pursuant to
Section 2.02 of the Indenture]. 

    (b) The
Notes are secured by [A: a first priority Lien on First Lien Collateral, and] a second
priority Lien on Second Lien Collateral [B: and a third priority Lien on Third Lien Collateral], in each case subject to certain
Permitted Liens as more fully set forth in the Indenture and the Collateral Agreement. Certain rights and remedies with respect to Collateral are limited pursuant to, and as described more
particularly in, the Intercreditor Agreement and the other Collateral Agreements. Each
Holder, by accepting a Note, agrees to be bound to all the terms and provisions of the Intercreditor Agreement and the other Collateral Agreements, as the same may be amended from time to time.
Collateral may be released from the Lien of the Indenture under certain circumstances as described in the Indenture and the Collateral Agreements. 

    5.  OPTIONAL REDEMPTION.  The Notes shall be subject to
redemption at any time and from time to time at the option of the Company, in whole or in part, without premium or penalty, upon not less than 30 nor more than 60 days' notice, at the
redemption price of 100% of the principal amount thereof plus accrued and unpaid interest thereon to the applicable redemption date. 

    6.  MANDATORY REDEMPTION.  Except as set forth  [Series A only: in this Section 6 and] in Section 7
below, the Company shall not be required to make
mandatory redemption or sinking fund payments with respect to the Notes. 

    [Series A only:] As more fully set forth in the Indenture, on each Interest Payment Date, the Company
shall make a mandatory redemption of Notes in an aggregate principal amount equal to the Miscellaneous Collateral Cashflow received since the last redemption pursuant to this paragraph or, in the case
of the first redemption pursuant to this paragraph, since the Issue Date. Such redemption shall be made at a redemption price equal to 100% of the principal amount of the Notes being redeemed. 

    [Series A only:] As more fully set forth in the Indenture, unless the Company, not more than
60 days prior to the relevant Interest Payment Date, delivers to the Trustee an Officers' Certificate stating that the Company has determined that the Company will not have sufficient liquidity
on a projected basis to make the redemptions described in this paragraph and to pay all anticipated operating expenses and other obligations, including, without limitation, interest, Mandatory
Amortization Payments and funding and maintenance of a $7.5 million working capital reserve account, but excluding certain dividends, the Company shall make mandatory redemptions of Notes in
the amounts of the Scheduled Principal Paydowns on or before the corresponding Interest Payment Dates described in the definition of such term. Such redemptions shall be made at redemption prices
equal to 100% of the principal amount of Notes being redeemed. All amounts paid to Holders to purchase 

A-4

 

Notes pursuant to Section 7(b) below shall be credited against the redemption requirements set forth in this paragraph in order of maturity. 

    7.  REPURCHASE AT OPTION OF HOLDER.  

    (a) As
more fully set forth in the Indenture, if a Change of Control occurs, each Holder of Notes will have the right to require the Company to repurchase all or any
part (equal to $1,000 or an integral multiple thereof) of such Holder's Notes pursuant to the offer described below (the "Change of Control Offer") at
an offer price in cash equal to 100% of the aggregate principal amount thereof plus accrued and unpaid interest thereon, if any, to the date of purchase (the "Change of Control
Payment"). Within 30 days following any Change of Control, the Company shall mail a notice to each Holder setting forth the procedures governing the Change of Control
Offer as required by the Indenture. 

    (b) As
more fully set forth in the Indenture, within 180 days after the receipt of any Net Proceeds from an Asset Sale, the Company may apply such Net Proceeds,
at its option, (i) to the permanent repayment of Indebtedness under the Senior Credit Facility, or (ii) to the acquisition of income-producing assets (including, without limitation,
securities trading assets) or Equity Interests in Persons that own income-producing assets. Pending the final application of any such Net Proceeds, the Company may temporarily reduce revolving credit
borrowings or otherwise invest such Net Proceeds in any manner that is not prohibited by the Indenture. Any Net Proceeds from Asset Sales that are not applied or invested as provided in the first
sentence of this subsection will be deemed to constitute "Excess Proceeds." In certain circumstances, when the aggregate amount of Excess Proceeds
exceeds $7.5 million, the Company will be required to make an offer to all Holders of Notes, all holders of Series [B]
[A] Notes, all holders of Merrill/GACC Debt and all holders of other Indebtedness containing provisions similar to those set forth in the Indenture with
respect to offers to purchase or redeem with the proceeds of sales of assets (an "Asset Sale Offer") to purchase the maximum principal amount of Notes
and such other Indebtedness that may be purchased out of the Excess Proceeds, at an offer price in cash in an amount equal to 100% of the principal amount thereof plus accrued and unpaid interest
thereon, if any, to the date of purchase, in accordance with the procedures set forth in the Indenture and such other Indebtedness. 

    (c) As
more fully set forth in the Indenture, if [Series B only: (i) the Series A Notes have been paid in full
and (ii)] the Company issues Equity Interests in the Company after the Issue Date, then the Company shall make an offer to all Holders to purchase the maximum
principal amount of Notes that may be purchased out of the Net Equity Proceeds of such issuance, at an offer price in cash in an amount equal to 100% of the principal amount thereof plus accrued and
unpaid interest thereon, if any, to the date of purchase, in accordance with the procedures set forth in the Indenture, subject to a maximum total offer price of $10.0 million in the aggregate
for all such offers to purchase Notes and Series [B] [A] Notes made after the Issue Date. 

    8.  NOTICE OF REDEMPTION.  Notice of redemption will be
mailed at least [30] days but not more than 60 days before the redemption date to each Holder whose Notes are to be redeemed at its registered address. On and after the
redemption date interest ceases to accrue on Notes or portions thereof called for redemption. 

    9.  DENOMINATIONS, TRANSFER, EXCHANGE.  The Notes are in
registered form without coupons. The transfer of Notes may be registered and Notes may be exchanged as provided in the Indenture. The Registrar and the Trustee may require a Holder, among other
things, to furnish appropriate endorsements and transfer documents and the Company may require a Holder to pay any taxes and fees required by law or permitted by the Indenture. The Company need not
exchange or register the transfer of any Note or portion of a Note selected for redemption, except for the unredeemed portion of any Note being redeemed in part. Also, the Company need not exchange or
register the transfer of any Notes for a period of 15 Business Days before a selection of Notes to be redeemed or during the period between a Record Date and the corresponding Interest Payment Date. 

A-5

 

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

    11.  AMENDMENT, SUPPLEMENT AND WAIVER.  Subject to
certain exceptions, the Company and the Trustee may amend or supplement the Indenture and the Notes may be amended or supplemented with the consent of the Holders of at least a majority in principal
amount of the Notes then outstanding (including, without limitation, consents obtained in connection with a tender offer or exchange offer for, or purchase of, the Notes), and any existing Default or
Event of Default (other than a Default or Event of Default in the payment of the principal of, premium, if any, or interest on the Notes, except a payment default resulting from an acceleration that
has been rescinded) or compliance with any provision of the Indenture or the Notes may be waived with the consent of the Holders of a majority in principal amount of the then outstanding Notes
(including, without limitation, consents obtained in connection with a tender offer or exchange offer for, or purchase of, the Notes). Without the consent of any Holder of Notes, the Indenture or the
Notes may be amended or supplemented to cure any ambiguity, defect or inconsistency, to provide for uncertificated Notes in addition to or in place of certificated Notes, to provide for the assumption
of the Company's obligations to Holders of the Notes in case of a merger or consolidation, to make any change that would provide any additional rights or benefits to the Holders of the Notes or that
does not adversely affect the legal rights under the Indenture of any such Holder, or to comply with the requirements of the SEC in order to effect or maintain the qualification of the Indenture under
the Trust Indenture Act. 

    12.  DEFAULTS AND REMEDIES.  Events of Default include:
(i) default for 30 days in the payment when due of interest on the Notes or Loan Fees; (ii) default in payment when due of the principal of the Notes; (iii) failure by the
Company to make a mandatory redemption or purchase required by Section 3.08, 4.10 or 4.15 of the Indenture; (iv) failure by the Company or any of its Restricted Subsidiaries for
60 days after receipt of notice to comply with any of its other obligations, covenants or agreements in the Indenture, the Collateral Agreements or the Notes; (v) default under any
material agreement or instrument governing, evidencing or securing the Merrill/GACC Debt and expiration of
all applicable cure periods, and either (A) the Repo Purchaser has taken material action to enforce default remedies under such agreement or instrument or (ii) the Repo Purchaser has
materially improved any rights granted to it under any such agreement or instrument pursuant to one or more amendments, supplements or other modifications to such agreement or instrument; and
(vi) certain events of bankruptcy or insolvency with respect to the Company. 

    If
any Event of Default occurs and is continuing, the Trustee, at the request of the Holders of at least a majority in principal amount of the then outstanding Notes, may declare all
the Notes to be due and payable immediately. Notwithstanding the foregoing, in the case of an Event of Default arising from certain events of bankruptcy or insolvency with respect to the Company, all
outstanding Notes will become due and payable without further action or notice. Holders may not enforce the Indenture or the Notes except as provided in the Indenture. Subject to certain limitations,
Holders of a majority in principal amount of the then outstanding Notes may direct the Trustee in its exercise of any trust or power. The Trustee may withhold from Holders of the Notes notice of any
continuing Default or Event of Default (except a Default or Event of Default relating to the payment of principal or interest) if it determines that withholding notice is in their interest. 

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

    14.  NO RECOURSE AGAINST OTHERS.  A director, officer,
employee, incorporator or stockholder, of the Company or any Subsidiary, as such, shall not have any liability for any obligations of the Company under the Notes or the Indenture or for any claim
based on, in respect of, or by 

A-6

 

reason of, such obligations or their creation. Each Holder by accepting a Note waives and releases all such liability. The waiver and release are part of the consideration for the issuance of the
Notes. 

    15.  AUTHENTICATION.  This Note shall not be valid until
authenticated by the manual signature of the Trustee or an authenticating agent. 

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

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

    The
Company will furnish to any Holder upon written request and without charge a copy of the Indenture. Requests may be made to: 

CRIIMI
MAE Inc.

11200 Rockville Pike

Rockville, Maryland 20852

Attention: Chief Financial Officer 

A-7

  

 
 

Assignment Form    
  

To
assign this Note, fill in the form below: (I) or (we) assign and transfer this Note to 

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

(Insert
assignee's social security or tax I.D. no.) 

and
irrevocably appoint   

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

Date:                    ,
200       

	 	 	Your Signature:	 	  

	 	 	(Sign exactly as your name appears on the face of this Note)

Signature Guarantee.  

A-8

  

 
 

Option Of Holder To Elect Purchase    
  

    If you want to elect to have this Note purchased by the Company pursuant to Section 3.08(c), 4.10 or 4.15 of the Indenture, check the box below: 

	/ /  Section 3.08(c)	 	/ /  Section 4.10
	

/ /  Section 4.15	
 	

 

    If
you want to elect to have only part of the Note purchased by the Company, state the amount you elect to have purchased: $          

Date:                    ,
200       

	 	 	Your Signature:	 	  

	 	 	(Sign exactly as your name appears on the face of this Note)

	  	 	 	 	 
	 	 	Tax Identification No:	 	  

Signature Guarantee.  

A-9

  

[if a Global Note, include the following:]

 
 

SCHEDULE OF INCREASES OF, AND EXCHANGES OF INTERESTS IN, THE GLOBAL NOTE    
  

    The following increases of this Global Note pursuant to the issuance of Additional Notes, and exchanges of a part of this Global Note for an interest in
another Global Note or for a Definitive Note, or exchanges of a part of another Global Note or Definitive Note for an interest in this Global Note, have been made: 

	Date of Exchange
 
	 	Amount of

decrease in

Principal Amount

of this Global Note
	 	Amount of

increase in

Principal Amount

of this Global Note
	 	Principal Amount of

this Global Note

following such

decrease (or increase)
	 	Signature of

authorized officer

of Trustee or

Note Custodian

	  	 	 	 	 	 	 	 	 

A-10

 
 

EXHIBIT B
  
    Form of Articles Supplementary to Articles of Incorporation in respect of Noteholder Preferred Stock    
  

[TO BE BASED ON TERM SHEET, P. 9 (P. A-84), MIDDLE PARAGRAPH]  

 
 

SCHEDULE 1.01(a)
  
    ADDITIONAL COLLATERAL AGREEMENTS    
  

 
 

SCHEDULE 1.01(b)
  
    UNRESTRICTED SUBSIDIARIES AS OF THE ISSUE DATE    
  

 
 

SCHEDULE 4.16
  
    MINIMUM EXCESS CASH FLOW    
  

	Period and Period Ending Date
 
	 	Minimum Excess Cash Flow

	3 months ended            , 200 	 	$	      
	6 months ended            , 200 	 	$	      
	9 months ended            , 200 	 	$	      
	12 months ended            , 200 	 	$	      
	12 months ended            , 200 	 	$	      
	12 months ended            , 200 	 	$	      
	12 months ended            , 200 	 	$	      
	12 months ended            , 200 	 	$	      
	12 months ended            , 200 	 	$	      
	12 months ended            , 200 	 	$	      
	12 months ended            , 200 	 	$	      
	12 months ended            , 200 	 	$	      
	12 months ended            , 200 	 	$	      
	12 months ended            , 200 	 	$	      
	12 months ended            , 200 	 	$	      
	12 months ended            , 200 	 	$	      

[until final maturity]  

    [Amounts will be inserted based upon one-month LIBOR as of the Issue Date (and the related spread over LIBOR)
and based upon such LIBOR rate remaining constant throughout the term of the Indenture, assuming a 15-year mortgage amortization schedule per period.]  

    [Minimum Excess Cash Flow requirement at the date that is 5 years after the Issue Date will be adjusted downward to
reflect early payment of the amounts that were previously scheduled to have been paid at 51/2 years.]

 
 

SCHEDULE 10.02
  
    REQUIRED FILINGS

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00020-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00020-of-00352.parquet"}]]