Document:

Exhibit 10.34

 

GLOBAL GEOPHYSICAL SERVICES, INC.

2006 INCENTIVE COMPENSATION PLAN

 

(As Effective July 11, 2006)

 

 

TABLE OF CONTENTS

 

	
   

  	
   

  	
   

  	
  Page

  
	
  SECTION 1.

  	
  GENERAL
  PROVISIONS RELATING TO PLAN GOVERNANCE, COVERAGE AND BENEFITS

  	
   

  	
  1

  
	
  1.1

  	
  Background and Purpose

  	
   

  	
  1

  
	
  1.2

  	
  Definitions

  	
   

  	
  1

  
	
   

  	
  (a)

  	
  Authorized Officer

  	
   

  	
  1

  
	
   

  	
  (b)

  	
  Board

  	
   

  	
  1

  
	
   

  	
  (c)

  	
  Cause

  	
   

  	
  2

  
	
   

  	
  (d)

  	
  CEO

  	
   

  	
  2

  
	
   

  	
  (e)

  	
  Change in Control

  	
   

  	
  2

  
	
   

  	
  (f)

  	
  Code

  	
   

  	
  2

  
	
   

  	
  (g)

  	
  Committee

  	
   

  	
  2

  
	
   

  	
  (h)

  	
  Common Stock

  	
   

  	
  2

  
	
   

  	
  (i)

  	
  Company

  	
   

  	
  2

  
	
   

  	
  (j)

  	
  Consultant

  	
   

  	
  2

  
	
   

  	
  (k)

  	
  Covered Employee

  	
   

  	
  2

  
	
   

  	
  (l)

  	
  Disability

  	
   

  	
  3

  
	
   

  	
  (m)

  	
  Employee

  	
   

  	
  3

  
	
   

  	
  (n)

  	
  Employment

  	
   

  	
  3

  
	
   

  	
  (o)

  	
  Exchange Act

  	
   

  	
  3

  
	
   

  	
  (p)

  	
  Fair Market Value

  	
   

  	
  3

  
	
   

  	
  (q)

  	
  Grantee

  	
   

  	
  4

  
	
   

  	
  (r)

  	
  Immediate Family

  	
   

  	
  4

  
	
   

  	
  (s)

  	
  Incentive Agreement

  	
   

  	
  4

  
	
   

  	
  (t)

  	
  Incentive Award

  	
   

  	
  4

  
	
   

  	
  (u)

  	
  Incentive Stock Option or ISO

  	
   

  	
  4

  
	
   

  	
  (v)

  	
  Insider

  	
   

  	
  4

  
	
   

  	
  (w)

  	
  Nonstatutory Stock Option

  	
   

  	
  4

  
	
   

  	
  (x)

  	
  Option Price

  	
   

  	
  4

  
	
   

  	
  (y)

  	
  Other Stock-Based Award

  	
   

  	
  4

  
	
   

  	
  (z)

  	
  Outside Director

  	
   

  	
  4

  
	
   

  	
  (aa)

  	
  Parent

  	
   

  	
  4

  
	
   

  	
  (bb)

  	
  Performance-Based Award

  	
   

  	
  4

  
	
   

  	
  (cc)

  	
  Performance-Based Exception

  	
   

  	
  4

  
	
   

  	
  (dd)

  	
  Performance Criteria

  	
   

  	
  4

  
	
   

  	
  (ee)

  	
  Performance Period

  	
   

  	
  4

  
	
   

  	
  (ff)

  	
  Plan

  	
   

  	
  5

  
	
   

  	
  (gg)

  	
  Plan Year

  	
   

  	
  5

  
	
   

  	
  (hh)

  	
  Publicly Held Corporation

  	
   

  	
  5

  
	
   

  	
  (ii)

  	
  Restricted Stock

  	
   

  	
  5

  
	
   

  	
  (jj)

  	
  Restricted Stock Award

  	
   

  	
  5

  
	
   

  	
  (kk)

  	
  Restricted Stock Unit

  	
   

  	
  5

  
	
   

  	
  (ll)

  	
  Restriction Period

  	
   

  	
  5

  
	
   

  	
  (mm)

  	
  Retirement

  	
   

  	
  5

  
	
   

  	
  (nn)

  	
  Share

  	
   

  	
  5

  
	
   

  	
  (oo)

  	
  Share Pool

  	
   

  	
  5

  
	
   

  	
  (pp)

  	
  Spread

  	
   

  	
  5

  
	
   

  	
  (qq)

  	
  Stock Appreciation Right or SAR

  	
   

  	
  5

  
	
   

  	
  (rr)

  	
  Stock Option or Option

  	
   

  	
  5

  

 

i

 

	
   

  	
  (ss)

  	
  Subsidiary

  	
   

  	
  5

  
	
   

  	
  (tt)

  	
  Supplemental Payment

  	
   

  	
  5

  
	
  1.3

  	
  Plan Administration

  	
   

  	
  6

  
	
   

  	
  (a)

  	
  Authority of the Committee

  	
   

  	
  6

  
	
   

  	
  (b)

  	
  Meetings

  	
   

  	
  6

  
	
   

  	
  (c)

  	
  Decisions Binding

  	
   

  	
  6

  
	
   

  	
  (d)

  	
  Modification of Outstanding Incentive Awards

  	
   

  	
  6

  
	
   

  	
  (e)

  	
  Delegation of Authority

  	
   

  	
  6

  
	
   

  	
  (f)

  	
  Expenses of Committee

  	
   

  	
  7

  
	
   

  	
  (g)

  	
  Surrender of Previous Incentive Awards

  	
   

  	
  7

  
	
   

  	
  (h)

  	
  Indemnification

  	
   

  	
  7

  
	
  1.4

  	
  Shares of Common Stock Available for Incentive Awards

  	
   

  	
  7

  
	
  1.5

  	
  Share Pool Adjustments for Awards and Payouts

  	
   

  	
  8

  
	
  1.6

  	
  Common Stock Available

  	
   

  	
  8

  
	
  1.7

  	
  Participation

  	
   

  	
  9

  
	
   

  	
  (a)

  	
  Eligibility

  	
   

  	
  9

  
	
   

  	
  (b)

  	
  Incentive Stock Option Eligibility

  	
   

  	
  9

  
	
  1.8

  	
  Types of Incentive Awards

  	
   

  	
  9

  
	
   

  	
   

  	
   

  	
   

  
	
  SECTION 2.
  

  	
  STOCK OPTIONS AND STOCK APPRECIATION RIGHTS

  	
   

  	
  9

  
	
  2.1

  	
  Grant of Stock Options

  	
   

  	
  9

  
	
  2.2

  	
  Stock Option Terms

  	
   

  	
  9

  
	
   

  	
  (a)

  	
  Written Agreement

  	
   

  	
  9

  
	
   

  	
  (b)

  	
  Number of Shares

  	
   

  	
  10

  
	
   

  	
  (c)

  	
  Exercise Price

  	
   

  	
  10

  
	
   

  	
  (d)

  	
  Term

  	
   

  	
  10

  
	
   

  	
  (e)

  	
  Exercise

  	
   

  	
  10

  
	
   

  	
  (f)

  	
  $100,000 Annual Limit on Incentive Stock Options

  	
   

  	
  10

  
	
  2.3

  	
  Stock Option Exercises

  	
   

  	
  10

  
	
   

  	
  (a)

  	
  Method of Exercise and Payment

  	
   

  	
  10

  
	
   

  	
  (b)

  	
  Restrictions on Share Transferability

  	
   

  	
  11

  
	
   

  	
  (c)

  	
  Notification of Disqualifying Disposition of Shares from Incentive
  Stock Options

  	
   

  	
  12

  
	
   

  	
  (d)

  	
  Proceeds of Option Exercise

  	
   

  	
  12

  
	
  2.4

  	
  Stock Appreciation Rights

  	
   

  	
  12

  
	
   

  	
  (a)

  	
  Grant

  	
   

  	
  12

  
	
   

  	
  (b)

  	
  General Provisions

  	
   

  	
  12

  
	
   

  	
  (c)

  	
  Exercise

  	
   

  	
  12

  
	
   

  	
  (d)

  	
  Settlement

  	
   

  	
  12

  
	
  2.5

  	
  Supplemental Payment on Exercise of Nonstatutory Stock Options

  	
   

  	
  12

  
	
   

  	
   

  	
   

  	
   

  
	
  SECTION 3.
  

  	
  RESTRICTED STOCK

  	
   

  	
  13

  
	
  3.1

  	
  Award of Restricted Stock

  	
   

  	
  13

  
	
   

  	
  (a)

  	
  Grant

  	
   

  	
  13

  
	
   

  	
  (b)

  	
  Immediate Transfer Without Immediate Delivery of Restricted Stock

  	
   

  	
  13

  
	
  3.2

  	
  Restrictions

  	
   

  	
  14

  
	
   

  	
  (a)

  	
  Forfeiture of Restricted Stock

  	
   

  	
  14

  
	
   

  	
  (b)

  	
  Issuance of Certificates

  	
   

  	
  14

  
	
   

  	
  (c)

  	
  Removal of Restrictions

  	
   

  	
  14

  
	
  3.3

  	
  Delivery of Shares of Common Stock

  	
   

  	
  14

  
	
  3.4

  	
  Supplemental Payment on Vesting of Restricted Stock

  	
   

  	
  14

  

 

ii

 

	
  SECTION 4.
  

  	
  OTHER STOCK-BASED AWARDS

  	
   

  	
  15

  
	
  4.1

  	
  Grant of Other Stock-Based Awards

  	
   

  	
  15

  
	
  4.2

  	
  Other Stock-Based Award Terms

  	
   

  	
  15

  
	
   

  	
  (a)

  	
  Written Agreement

  	
   

  	
  15

  
	
   

  	
  (b)

  	
  Purchase Price

  	
   

  	
  15

  
	
   

  	
  (c)

  	
  Performance Criteria and Other Terms

  	
   

  	
  15

  
	
  4.3

  	
  Supplemental Payment on Other Stock-Based Awards

  	
   

  	
  15

  
	
   

  	
   

  	
   

  	
   

  
	
  SECTION 5.

  	
  PERFORMANCE-BASED AWARDS AND PERFORMANCE CRITERIA

  	
   

  	
  16

  
	
   

  	
   

  	
   

  	
   

  
	
  SECTION 6.

  	
  PROVISIONS RELATING TO PLAN PARTICIPATION

  	
   

  	
  17

  
	
  6.1

  	
  Incentive Agreement

  	
   

  	
  17

  
	
  6.2

  	
  No Right to Employment

  	
   

  	
  17

  
	
  6.3

  	
  Securities Requirements

  	
   

  	
  18

  
	
  6.4

  	
  Transferability

  	
   

  	
  18

  
	
  6.5

  	
  Rights as a Shareholder

  	
   

  	
  19

  
	
   

  	
  (a)

  	
  No Shareholder Rights

  	
   

  	
  19

  
	
   

  	
  (b)

  	
  Representation of Ownership

  	
   

  	
  19

  
	
  6.6

  	
  Change in Stock and Adjustments

  	
   

  	
  19

  
	
   

  	
  (a)

  	
  Changes in Law or Circumstances

  	
   

  	
  19

  
	
   

  	
  (b)

  	
  Exercise of Corporate Powers

  	
   

  	
  19

  
	
   

  	
  (c)

  	
  Recapitalization of the Company

  	
   

  	
  20

  
	
   

  	
  (d)

  	
  Issue of Common Stock by the Company

  	
   

  	
  20

  
	
   

  	
  (e)

  	
  Assumption under the Plan of Outstanding Stock Options

  	
   

  	
  20

  
	
   

  	
  (f)

  	
  Assumption of Incentive Awards by a Successor

  	
   

  	
  20

  
	
  6.7

  	
  Termination of Employment, Death, Disability and Retirement

  	
   

  	
  21

  
	
   

  	
  (a)

  	
  Termination of Employment

  	
   

  	
  21

  
	
   

  	
  (b)

  	
  Termination of Employment for Cause

  	
   

  	
  22

  
	
   

  	
  (c)

  	
  Retirement

  	
   

  	
  22

  
	
   

  	
  (d)

  	
  Disability or Death

  	
   

  	
  22

  
	
   

  	
  (e)

  	
  Continuation

  	
   

  	
  22

  
	
  6.8

  	
  Change in Control

  	
   

  	
  22

  
	
  6.9

  	
  Exchange of Incentive Awards

  	
   

  	
  24

  
	
  6.10

  	
  Financing

  	
   

  	
  24

  
	
   

  	
   

  	
   

  	
   

  
	
  SECTION 7.

  	
  GENERAL

  	
   

  	
  24

  
	
  7.1

  	
  Effective Date and Grant Period

  	
   

  	
  24

  
	
  7.2

  	
  Funding and Liability of Company

  	
   

  	
  25

  
	
  7.3

  	
  Withholding Taxes

  	
   

  	
  25

  
	
   

  	
  (a)

  	
  Tax Withholding

  	
   

  	
  25

  
	
   

  	
  (b)

  	
  Share Withholding

  	
   

  	
  25

  
	
   

  	
  (c)

  	
  Incentive Stock Options

  	
   

  	
  25

  
	
   

  	
  (d)

  	
  Loans

  	
   

  	
  25

  
	
  7.4

  	
  No Guarantee of Tax Consequences

  	
   

  	
  26

  
	
  7.5

  	
  Designation of Beneficiary by Participant

  	
   

  	
  26

  
	
  7.6

  	
  Deferrals

  	
   

  	
  26

  
	
  7.7

  	
  Amendment and Termination

  	
   

  	
  26

  
	
  7.8

  	
  Requirements of Law

  	
   

  	
  27

  
	
   

  	
  (a)

  	
  Governmental Entities and Securities Exchanges

  	
   

  	
  27

  
	
   

  	
  (b)

  	
  Securities Act Rule 701

  	
   

  	
  27

  
	
  7.9

  	
  Rule 16b-3 Securities Law Compliance for Insiders

  	
   

  	
  28

  
	
  7.10

  	
  Compliance with Code Section 162(m) for Publicly Held
  Corporation

  	
   

  	
  28

  

 

iii

 

	
  7.11

  	
  Compliance with Code Section 409A

  	
   

  	
  28

  
	
  7.12

  	
  Notices

  	
   

  	
  28

  
	
   

  	
  (a)

  	
  Notice From Insiders to Secretary of Change in Beneficial Ownership

  	
   

  	
  28

  
	
   

  	
  (b)

  	
  Notice to Insiders and Securities and Exchange Commission

  	
   

  	
  28

  
	
  7.13

  	
  Pre-Clearance Agreement with Brokers

  	
   

  	
  29

  
	
  7.14

  	
  Successors to Company

  	
   

  	
  29

  
	
  7.15

  	
  Miscellaneous Provisions

  	
   

  	
  29

  
	
  7.16

  	
  Severability

  	
   

  	
  29

  
	
  7.17

  	
  Gender, Tense and Headings

  	
   

  	
  29

  
	
  7.18

  	
  Governing Law

  	
   

  	
  29

  

 

iv

 

GLOBAL GEOPHYSICAL SERVICES, INC.

2006 INCENTIVE COMPENSATION PLAN

 

SECTION 1.

 

GENERAL PROVISIONS RELATING TO

PLAN GOVERNANCE, COVERAGE AND
BENEFITS

 

1.1                               Background and Purpose

 

Global
Geophysical Services, Inc., a Delaware corporation (the “Company”) has adopted this plan document,
entitled “Global Geophysical Services, Inc. 2006 Incentive Compensation
Plan” (the “Plan”), effective as
of July 11, 2006 (the “Effective Date”).

 

The
purpose of the Plan is to foster and promote the long-term financial success of
the Company and to increase stockholder value by: (a) encouraging the
commitment of selected key Employees, Consultants and Outside Directors, (b) motivating
superior performance of key Employees, Consultants and Outside Directors by
means of long-term performance related incentives, (c) encouraging and
providing key Employees, Consultants and Outside Directors with a program for
obtaining ownership interests in the Company which link and align their
personal interests to those of the Company’s stockholders, (d) attracting
and retaining key Employees, Consultants and Outside Directors by providing
competitive compensation opportunities, and (e) enabling key Employees,
Consultants and Outside Directors to share in the long-term growth and success
of the Company.

 

The
Plan provides for payment of various forms of compensation. It is not intended
to be a plan that is subject to the Employee Retirement Income Security Act of
1974, as amended (“ERISA”). The
Plan will be interpreted, construed and administered consistent with its status
as a plan that is not subject to ERISA.

 

The
Plan will remain in effect, subject to the right of the Board to amend or
terminate the Plan at any time pursuant to Section 7.7,
until all Shares subject to the Plan have been purchased or acquired according
to its provisions. However, in no event may an Incentive Stock Option be
granted under the Plan after the expiration of ten (10) years from the
Effective Date to the extent required by Code Section 422(b)(2).

 

1.2                               Definitions

 

The
following terms shall have the meanings set forth below:

 

(a)                                  Authorized Officer.  The President of the Company (the “President”) or any other officer of the
Company to whom the Board or CEO delegates the authority to execute any
Incentive Agreement for and on behalf of the Company. No officer or director
shall be an Authorized Officer with respect to any Incentive Agreement for
himself.

 

(b)                                  Board.  The Board of Directors of the Company.

 

(c)                                  Cause.  When used in connection with the termination
of a Grantee’s Employment, shall mean the termination of the Grantee’s
Employment by the Company or any Subsidiary by reason of (i) the
conviction of the Grantee by a court of competent jurisdiction as to which no
further appeal can be taken of a crime involving moral turpitude or a felony; (ii) the
commission by the Grantee of a material act of fraud upon the Company or any
Subsidiary, or any customer or supplier thereof; (iii) the
misappropriation of any funds or property of the Company or any Subsidiary, or
any customer or supplier thereof; (iv) the willful and continued failure
by the Grantee to perform the material duties assigned to him that is not cured
to the reasonable satisfaction of the Company within 30 days after written
notice of such failure is provided to Grantee by the Board or CEO (or by
another officer of the Company or a Subsidiary who has been designated by the
Board or CEO for such purpose); (v) the engagement by the Grantee in any
direct and material conflict of interest with the Company or any Subsidiary
without compliance with the Company’s or Subsidiary’s conflict of interest
policy, if any, then in effect; or (vi) the 

 

 

engagement
by the Grantee, without the written approval of the Board or CEO, in any
material activity which competes with the business of the Company or any
Subsidiary or which would result in a material injury to the business,
reputation or goodwill of the Company or any Subsidiary.

 

(d)                                  CEO.  The President of the Company.

 

(e)                                  Change in Control.  Any of the events described in and subject to Section 6.8.

 

(f)                                    Code.  The Internal Revenue Code of 1986, as
amended, and the regulations and other authority promulgated thereunder by the
appropriate governmental authority. References herein to any provision of the
Code shall refer to any successor provision thereto.

 

(g)                                 Committee.  The committee appointed by the Board to
administer the Plan. If the Company is a Publicly Held Corporation, the Plan
shall be administered by the Committee appointed by the Board consisting of not
less than two directors who fulfill the “nonemployee director” requirements of Rule 16b-3
under the Exchange Act and the “outside director” requirements of Code Section 162(m).
In either case, the Committee may be the Compensation Committee of the Board,
or any subcommittee of the Compensation Committee, provided that the members of
the Committee satisfy the requirements of the previous provisions of this
paragraph.

 

The Board shall have the power to fill vacancies on the Committee arising
by resignation, death, removal or otherwise. The Board, in its sole discretion,
may allocate the powers and duties of the Committee among one or more separate
committees, or retain all powers and duties of the Committee in a single
Committee. The members of the Committee shall serve at the discretion of the
Board.

 

Notwithstanding the preceding paragraphs of this Section 1.2(g), the term “Committee”
as used in the Plan with respect to any Incentive Award for an Outside Director
shall refer to the entire Board. In the case of an Incentive Award for an
Outside Director, the Board shall have all the powers and responsibilities of
the Committee hereunder as to such Incentive Award, and any actions as to such
Incentive Award may be acted upon only by the Board (unless it otherwise
designates in its discretion). When the Board exercises its authority to act in
the capacity as the Committee hereunder with respect to an Incentive Award for
an Outside Director, it shall so designate with respect to any action that it
undertakes in its capacity as the Committee.

 

(h)                                 Common Stock.  The common stock of the Company, $.01 par
value per share, and any class of common stock into which such common shares
may hereafter be converted, reclassified or recapitalized.

 

(i)                                    Company.  Global Geophysical Services, Inc., a
corporation organized under the laws of the state of Delaware, and any
successor in interest thereto.

 

(j)                                    Consultant.  An independent agent, consultant, attorney,
an individual who has agreed to become an Employee within the next six months,
or any other individual who is not an Outside Director or employee of the
Company (or any Parent or Subsidiary) and who, in the opinion of the Committee,
(i) is in a position to contribute to the growth or financial success of
the Company (or any Parent or Subsidiary), (ii) is a natural person and (iii) provides
bona fide services to the Company
(or any Parent or Subsidiary), which services are not in connection with the
offer or sale of securities in a capital raising transaction, and do not
directly or indirectly promote or maintain a market for the Company’s
securities.

 

(k)                                Covered Employee.  A named executive officer who is one of the
group of covered employees, as defined in Code Section 162(m) and
Treasury Regulation Section 1.162-27(c) (or its successor), during
any period that the Company is a Publicly Held Corporation.

 

2

 

(l)                                    Disability.  As determined by the Committee in its
discretion exercised in good faith, a physical or mental condition of the
Grantee that would entitle him to payment of disability income payments under
the Company’s long term disability insurance policy or plan for employees, as
then effective, if any; or in the event that the Grantee is not covered, for
whatever reason, under the Company’s long-term disability insurance policy or
plan, “Disability” means a permanent and total disability as defined in Code Section 22(e)(3).
A determination of Disability may be made by a physician selected or approved
by the Committee and, in this respect, the Grantee shall submit to any
reasonable examination(s) required in the opinion of such physician.

 

(m)                              Employee.  Any employee of the Company (or any Parent or
Subsidiary) within the meaning of Code Section 3401(c) who, in the
opinion of the Committee, is in a position to contribute to the growth,
development or financial success of the Company (or any Parent or Subsidiary),
including, without limitation, officers who are members of the Board.

 

(n)                                 Employment.  Employment means that the individual is
employed as an Employee, or engaged as a Consultant or Outside Director, by the
Company (or any Parent or Subsidiary), or by any corporation issuing or
assuming an Incentive Award in any transaction described in Code Section 424(a),
or by a parent corporation or a subsidiary corporation of such corporation
issuing or assuming such Incentive Award, as the parent-subsidiary relationship
shall be determined at the time of the corporate action described in Code Section 424(a).
In this regard, neither the transfer of a Grantee from Employment by the
Company to Employment by any Parent or Subsidiary, nor the transfer of a
Grantee from Employment by any Parent or Subsidiary to Employment by the
Company, shall be deemed to be a termination of Employment of the Grantee.
Moreover, the Employment of a Grantee shall not be deemed to have been
terminated because of an approved leave of absence from active Employment on
account of temporary illness, authorized vacation or granted for reasons of
professional advancement, education, or health, or during any period required
to be treated as a leave of absence by virtue of any applicable statute,
Company personnel policy or written agreement.

 

The term “Employment” for purposes of the Plan shall include (i) active
performance of agreed services by a Consultant for the Company (or any Parent
or Subsidiary) or (ii) current membership on the Board by an Outside
Director.

 

All determinations regarding Employment, and termination of Employment,
shall be made by the Committee in its discretion.

 

(o)                                  Exchange Act.  The Securities Exchange Act of 1934, as
amended.

 

(p)                                  Fair Market Value.  If the Company is a Publicly Held
Corporation, the Fair Market Value of one Share on the date in question shall
be the closing sales price on the immediately preceding business day of a Share
as reported on the Nasdaq National Market System or other principal securities
exchange on which Shares are then listed or admitted to trading. If there was
no public trade of Common Stock on the date in question, Fair Market Value
shall be determined by reference to the last preceding date on which such a
trade was so reported.

 

If the Company is not a Publicly Held Corporation at the time a
determination of the Fair Market Value of the Common Stock is required to be
made hereunder, the determination of Fair Market Value for purposes of the Plan
shall be made by the Committee in its discretion. In this respect, the
Committee may rely on such financial data, appraisals, valuations, experts, and
other sources as, in its sole and absolute discretion, it deems advisable under
the circumstances. With respect to Stock Options, SARs, and other Incentive
Awards subject to Code Section 409A, such Fair Market Value shall be
determined by the Committee consistent with the requirements of Section 409A
in order to satisfy the exception under Section 409A for stock rights.

 

3

 

(q)                                  Grantee.  Any Employee, Consultant or Outside Director
who is granted an Incentive Award under the Plan.

 

(r)                                  Immediate Family.  With respect to a Grantee, the Grantee’s
child, stepchild, grandchild, parent, stepparent, grandparent, spouse, former
spouse, sibling, mother-in-law, father-in-law, son-in-law, daughter-in-law,
brother-in-law, or sister-in-law, including adoptive relationships.

 

(s)                                  Incentive Agreement.  The written agreement entered into between
the Company and the Grantee setting forth the terms and conditions pursuant to
which an Incentive Award is granted under the Plan, as such agreement is
further defined in Section 6.1.

 

(t)                                    Incentive Award.  A grant of an award under the Plan to a
Grantee, including any Nonstatutory Stock Option, Incentive Stock Option (ISO),
Stock Appreciation Right (SAR), Restricted Stock Award, Restricted Stock Unit
or Other Stock-Based Award, as well as any Supplemental Payment with respect
thereto.

 

(u)                                 Incentive Stock Option or ISO.  A Stock Option granted by the Committee to an
Employee under Section 2
which is designated by the Committee as an Incentive Stock Option and intended
to qualify as an Incentive Stock Option under Code Section 422.

 

(v)                                   Insider.  If the Company is a Publicly Held
Corporation, an individual who is, on the relevant date, an officer, director
or ten percent (10%) beneficial owner of any class of the Company’s equity
securities that is registered pursuant to Section 12 of the Exchange Act,
all as defined under Section 16 of the Exchange Act.

 

(w)                                Nonstatutory Stock Option.  A Stock Option granted by the Committee to a
Grantee under Section 2 that
is not designated by the Committee as an Incentive Stock Option.

 

(x)                                  Option Price.  The exercise price at which a Share may be
purchased by the Grantee of a Stock Option.

 

(y)                                  Other Stock-Based Award.  An award granted by the Committee to a
Grantee under Section 4.1
that is valued in whole or in part by reference to, or is otherwise based upon,
Common Stock.

 

(z)                                  Outside Director.  A member of the Board who is not, at the time
of grant of an Incentive Award, an employee of the Company or any Parent or
Subsidiary.

 

(aa)                            Parent.  Any corporation (whether now or hereafter
existing) which constitutes a “parent” of the Company, as defined in Code Section 424(e).

 

(bb)                            Performance-Based Award.  A grant of an Incentive Award under the Plan
pursuant to Section 5 that
is intended to satisfy the Performance-Based Exception.

 

(cc)                            Performance-Based Exception.  The performance-based exception from the tax
deductibility limitations of Code Section 162(m), as prescribed in Code Section 162(m) and
Treasury Regulation Section 1.162-27(e) (or its successor), which is
applicable during such period that the Company is a Publicly Held Corporation.

 

(dd)                            Performance Criteria.  The business criteria that are specified by
the Committee pursuant to Section 5
for an Incentive Award that is intended to qualify for the Performance-Based
Exception; the satisfaction of such business criteria during the Performance
Period being required for the grant and/or vesting of the particular Incentive
Award to occur, as specified in the particular Incentive Agreement.

 

(ee)                            Performance Period.  A period of time determined by the Committee
over which performance is measured for the purpose of determining a Grantee’s
right to, and the payment value of, any Incentive Award that is intended to
qualify for the Performance-Based Exception.

 

4

 

(ff)                                Plan.  Global Geophysical Services, Inc. 2006
Incentive Compensation Plan, as effective on the Effective Date, which is set forth
herein and as it may be amended from time to time.

 

(gg)                          Plan Year.  The calendar year.

 

(hh)                          Publicly Held Corporation.  A corporation issuing any class of common
equity securities required to be registered under Section 12 of the
Exchange Act.

 

(ii)                                Restricted Stock.  Common Stock that is issued or transferred to
a Grantee pursuant to Section 3.

 

(jj)                                Restricted Stock Award.  An authorization by the Committee to issue or
transfer Restricted Stock to a Grantee pursuant to Section 3.

 

(kk)                        Restricted Stock Unit.  A unit granted to a Grantee pursuant to Section 4.1 which entitles him to
receive a Share or cash on the vesting date, as specified in the Incentive
Agreement.

 

(ll)                                Restriction Period.  The period of time determined by the
Committee and set forth in the Incentive Agreement during which the transfer of
Restricted Stock by the Grantee is restricted.

 

(mm)                    Retirement.  The voluntary termination of Employment from
the Company or any Parent or Subsidiary constituting retirement for age on any
date after the Employee attains the normal retirement age of 65 years, or
such other age as may be designated by the Committee in the Employee’s
Incentive Agreement.

 

(nn)                          Share.  A share of the Common Stock of the Company.

 

(oo)                            Share Pool.  The number of shares authorized for issuance
under Section 1.4, as
adjusted for (i) awards and payouts under Section 1.5
and (ii) changes and adjustments as described in Section 6.6.

 

(pp)                            Spread.  The difference between the exercise price per
Share specified in a SAR grant and the Fair Market Value of a Share on the date
of exercise of the SAR.

 

(qq)                            Stock Appreciation Right or SAR.  A Stock Appreciation Right as described in Section 2.4.

 

(rr)                            Stock Option or Option.  Pursuant to Section 2,
(i) an Incentive Stock Option granted to an Employee, or (ii) a
Nonstatutory Stock Option granted to an Employee, Consultant or Outside
Director, whereunder such option the Grantee has the right to purchase Shares
of Common Stock. In accordance with Code Section 422, only an Employee may
be granted an Incentive Stock Option.

 

(ss)                            Subsidiary.  Any company (whether a corporation,
partnership, joint venture or other form of entity) in which the Company or a
corporation in which the Company owns a majority of the shares of capital
stock, directly or indirectly, owns a greater than 50% equity interest except
that, with respect to the issuance of Incentive Stock Options, the term “Subsidiary”
shall have the same meaning as the term “subsidiary corporation” as defined in
Code Section 424(f) as required by Code Section 422.

 

(tt)                                Supplemental Payment.  Any amount, as described in Sections 2.5, 3.4 and/or 4.3, that is
dedicated to payment of income taxes which are payable by the Grantee resulting
from an Incentive Award.

 

5

 

1.3                               Plan Administration

 

(a)                                  Authority of the Committee.  Except as may be limited by law and subject
to the provisions herein, the Committee shall have the complete power and
authority to (i) select Grantees who shall participate in the Plan; (ii) determine
the sizes, duration and types of Incentive Awards; (iii) determine the
terms and conditions of Incentive Awards and Incentive Agreements; (iv) determine
whether any Shares subject to Incentive Awards will be subject to any restrictions
on transfer; (v) construe and interpret the Plan and any Incentive
Agreement or other agreement entered into under the Plan; and (vi) establish,
amend, or waive rules for the Plan’s administration. Further, the
Committee shall make all other determinations which may be necessary or
advisable for the administration of the Plan.

 

(b)                                  Meetings.  The Committee shall designate a chairman from
among its members who shall preside at its meetings, and shall designate a
secretary, without regard to whether that person is a member of the Committee,
who shall keep the minutes of the proceedings and all records, documents, and
data pertaining to its administration of the Plan. Meetings shall be held at
such times and places as shall be determined by the Committee and the Committee
may hold telephonic meetings. The Committee may take any action otherwise
proper under the Plan by the affirmative vote, taken with or without a meeting,
of a majority of its members. The Committee may authorize any one or more of
its members or any officer of the Company to execute and deliver documents on
behalf of the Committee.

 

(c)                                  Decisions Binding.  All determinations and decisions of the
Committee shall be made in its discretion pursuant to the provisions of the
Plan, and shall be final, conclusive and binding on all persons including the
Company, its shareholders, Employees, Grantees, and their estates and
beneficiaries. The Committee’s decisions and determinations with respect to any
Incentive Award need not be uniform and may be made selectively among Incentive
Awards and Grantees, whether or not such Incentive Awards are similar or such
Grantees are similarly situated.

 

(d)                                  Modification of Outstanding Incentive Awards.  Subject to the shareholder approval
requirements of Section 7.7
if applicable, the Committee may, in its discretion, provide for the extension
of the exercisability of an Incentive Award, accelerate the vesting or
exercisability of an Incentive Award, eliminate or make less restrictive any
restrictions contained in an Incentive Award, waive any restriction or other
provisions of an Incentive Award, or otherwise amend or modify an Incentive
Award in any manner that (i) is not adverse to the Grantee to whom such
Incentive Award was granted, (ii) is consented to by such Grantee, (iii) does
not cause the Incentive Award to provide for the deferral of compensation in a
manner that does not comply with Code Section 409A (unless otherwise
determined by the Committee), or (iv) does not contravene the requirements
of the Performance-Based Exception under Code Section 162(m). With respect
to an Incentive Award that is an ISO, no adjustment thereto shall be made to
the extent constituting a “modification” within the meaning of Code Section 424(h)(3) unless
otherwise agreed to by the Grantee in writing. Notwithstanding the above
provisions of this subsection, no amendment or modification of an Incentive
Award shall be made to the extent such modification results in any Stock Option
with an exercise price less than 100% of the Fair Market Value per Share on the
date of grant (110% for Grantees of ISOs who are 10% or greater shareholders
pursuant to Section 1.7(b)).

 

(e)                                  Delegation of Authority.  The Committee may delegate to designated
officers or other employees of the Company any of its duties and authority
under the Plan pursuant to such conditions or limitations as the Committee may
establish from time to time; provided, however, the Committee may not delegate
to any person the authority (i) to grant Incentive Awards or (ii) if the
Company is a Publicly Held Corporation, to take any action which would
contravene the

 

6

 

requirements of Rule 16b-3
under the Exchange Act, the Performance-Based Exception under Code Section 162(m),
or the Sarbanes-Oxley Act of 2002.

 

(f)                                    Expenses of Committee.  The Committee may employ legal counsel,
including, without limitation, independent legal counsel and counsel regularly
employed by the Company, and other agents as the Committee may deem appropriate
for the administration of the Plan. The Committee may rely upon any opinion or
computation received from any such counsel or agent. All expenses incurred by
the Committee in interpreting and administering the Plan, including, without
limitation, meeting expenses and professional fees, shall be paid by the
Company.

 

(g)                                 Surrender of Previous Incentive Awards.  The Committee may, in its discretion, grant
Incentive Awards to Grantees on the condition that such Grantees surrender to
the Committee for cancellation such other Incentive Awards (including, without
limitation, Incentive Awards with higher exercise prices) as the Committee
directs. Incentive Awards granted on the condition precedent of surrender of
outstanding Incentive Awards shall not count against the limits set forth in Section 1.4 until such time as such
previous Incentive Awards are surrendered and cancelled. No surrender of Incentive
Awards shall be made under this Section 1.3(g) if
such surrender causes any Incentive Award to provide for the deferral of
compensation in a manner that is subject to taxation under Code Section 409A
(unless otherwise determined by the Committee).

 

(h)                                 Indemnification.  Each person who is or was a member of the
Committee shall be indemnified by the Company against and from any damage,
loss, liability, cost and expense that may be imposed upon or reasonably
incurred by him in connection with or resulting from any claim, action, suit,
or proceeding to which he may be a party or in which he may be involved by
reason of any action taken or failure to act under the Plan, except for any
such act or omission constituting willful misconduct or gross negligence. Each
such person shall be indemnified by the Company for all amounts paid by him in
settlement thereof, with the Company’s approval, or paid by him in satisfaction
of any judgment in any such action, suit, or proceeding against him, provided
he shall give the Company an opportunity, at its own expense, to handle and
defend the same before he undertakes to handle and defend it on his own behalf.
The foregoing right of indemnification shall not be exclusive of any other
rights of indemnification to which such persons may be entitled (i) under
the Company’s Articles or Certificate of Incorporation or Bylaws, or (ii) pursuant
to any separate indemnification or hold harmless agreement with the Company, (iii) as
a matter of law, or otherwise, or (iv) any power that the Company may have
to indemnify them or hold them harmless.

 

1.4                               Shares of Common Stock Available for Incentive Awards

 

Subject to adjustment under Section 6.6, there shall be available
for Incentive Awards that are granted wholly or partly in Common Stock
(including rights or Stock Options that may be exercised for or settled in
Common Stock) Three Million (3,000,000) Shares of Common Stock. The number of
Shares that are the subject of Incentive Awards under this Plan, which are
forfeited or terminated, expire unexercised, are settled in cash in lieu of
Common Stock or in a manner such that all or some of the Shares covered by an
Incentive Award are not issued to a Grantee or are exchanged for Incentive
Awards that do not involve Common Stock, shall again immediately become
available for Incentive Awards hereunder. The aggregate number of Shares which
may be issued upon exercise of ISOs shall be Three Million (3,000,000) of the
Shares reserved pursuant to the first sentence of this paragraph. For purposes
of counting Shares against the ISO maximum number of reserved Shares, the net
number of Shares issued pursuant to the exercise of an ISO shall be counted.
The Committee may from time to time adopt and observe such procedures
concerning the counting of Shares against the Plan maximum as it may deem
appropriate.

 

7

 

During any period that the
Company is a Publicly Held Corporation, then unless the Committee determines
that a particular Incentive Award granted to a Covered Employee is not intended
to comply with the Performance-Based Exception, the following rules shall
apply to grants of Incentive Awards to Covered Employees:

 

(a)                                  Subject to
adjustment as provided in Section 6.6,
the maximum aggregate number of Shares of Common Stock attributable to
Incentive Awards paid out in Shares that may be granted (in the case of Stock
Options and SARs) or that may vest (in the case of Restricted Stock, Restricted
Stock Units or Other Stock-Based Awards), as applicable, in any calendar year
pursuant to any Incentive Award held by any individual Covered Employee shall
be One Hundred Thousand (100,000) Shares.

 

(b)                                 The maximum
aggregate cash payout (with respect to any Incentive Awards paid out in cash)
in any calendar year which may be made to any Covered Employee shall be Two
Hundred Fifty Thousand Dollars ($250,000).

 

(c)                                  With respect to
any Stock Option or SAR granted to a Covered Employee that is canceled or
repriced, the number of Shares subject to such Stock Option or SAR shall
continue to count against the maximum number of Shares that may be the subject
of Stock Options or SARs granted to such Covered Employee hereunder and, in
this regard, such maximum number shall be determined in accordance with Code Section 162(m).

 

(d)                                 The limitations
of subsections (a), (b) and (c) above shall be construed and
administered so as to comply with the Performance-Based Exception.

 

1.5                               Share Pool Adjustments for Awards and Payouts

 

The following Incentive
Awards and payouts shall reduce, on a one Share for one Share basis, the number
of Shares authorized for issuance under the Share Pool:

 

(a)                                  Stock Option;

 

(b)                                 SAR;

 

(c)                                  Restricted
Stock Award; and

 

(d)                                 A payout of a
Restricted Stock Unit or Other Stock-Based Award in Shares.

 

The following transactions
shall restore, on a one Share for one Share basis, the number of Shares
authorized for issuance under the Share Pool:

 

(a)                                  A payout of a
Restricted Stock Award, Restricted Stock Unit, SAR, or Other Stock-Based Award
in the form of cash and not Shares (but not the “cashless” exercise of a Stock
Option as provided in Section 2.3(a));

 

(b)                                 A cancellation,
termination, expiration, forfeiture, or lapse for any reason of any Shares
subject to an Incentive Award; and

 

(c)                                  Payment of an
Option Price by withholding Shares which otherwise would be acquired on
exercise (i.e., the Share Pool
shall be increased by the number of Shares withheld in payment of the Option
Price).

 

1.6                               Common Stock Available

 

The Common Stock available
for issuance or transfer under the Plan shall be made available from Shares now
or hereafter (a) held in the treasury of the Company, (b) authorized
but unissued shares, or (c) Shares to be purchased or acquired by the
Company. No fractional shares shall be issued under the Plan; payment for
fractional shares shall be made in cash.

 

8

 

1.7                               Participation

 

(a)                                  Eligibility.  The Committee shall from time to time
designate those Employees, Consultants and/or Outside Directors, if any, to be
granted Incentive Awards under the Plan, the type of Incentive Awards granted,
the number of Shares, Stock Options, rights or units, as the case may be, which
shall be granted to each such person, and any other terms or conditions
relating to the Incentive Awards as it may deem appropriate to the extent
consistent with the provisions of the Plan. A Grantee who has been granted an
Incentive Award may, if otherwise eligible, be granted additional Incentive
Awards at any time.

 

No
Insider shall be eligible to be granted an Incentive Award that is subject to Rule 16a-3
under the Exchange Act unless and until such Insider has granted a limited
power of attorney to those officers of the Company who have been designated by
the Committee for purposes of future required filings under the Exchange Act.

 

(b)                                  Incentive Stock Option Eligibility.  No Consultant or Outside Director shall be
eligible for the grant of any Incentive Stock Option. In addition, no Employee
shall be eligible for the grant of any Incentive Stock Option who owns or would
own immediately before the grant of such Incentive Stock Option, directly or
indirectly, stock possessing more than ten percent (10%) of the total combined
voting power of all classes of stock of the Company, or any Parent or
Subsidiary. This restriction does not apply if, at the time such Incentive
Stock Option is granted, the Incentive Stock Option exercise price is at least
one hundred and ten percent (110%) of the Fair Market Value on the date of
grant and the Incentive Stock Option by its terms is not exercisable after the
expiration of five (5) years from the date of grant. For the purpose of
the immediately preceding sentence, the attribution rules of Code Section 424(d) shall
apply for the purpose of determining an Employee’s percentage ownership in the
Company or any Parent or Subsidiary. This paragraph shall be construed
consistent with the requirements of Code Section 422.

 

1.8                               Types of Incentive Awards

 

The types of Incentive
Awards under the Plan are Stock Options, Stock Appreciation Rights and
Supplemental Payments as described in Section 2,
Restricted Stock Awards and Supplemental Payments as described in Section 3, Restricted Stock Units and
Other Stock-Based Awards and Supplemental Payments as described in Section 4, or any combination of the
foregoing.

 

SECTION 2.

 

STOCK OPTIONS AND STOCK APPRECIATION RIGHTS

 

2.1                               Grant of Stock Options

 

The Committee is authorized
to grant (a) Nonstatutory Stock Options to Employees, Consultants and/or
Outside Directors and (b) Incentive Stock Options to Employees only, in
accordance with the terms and conditions of the Plan, and with such additional
terms and conditions, not inconsistent with the Plan, as the Committee shall
determine in its discretion. Successive grants may be made to the same Grantee
regardless whether any Stock Option previously granted to such person remains
unexercised.

 

2.2                               Stock Option Terms

 

(a)                                  Written Agreement.  Each grant of a Stock Option shall be
evidenced by a written Incentive Agreement. Among its other provisions, each
Incentive Agreement shall set forth the extent to which the Grantee shall have
the right to exercise the Stock Option following termination of the Grantee’s
Employment. Such provisions shall be determined in the discretion of the 

 

9

 

Committee, shall be included
in the Grantee’s Incentive Agreement, and need not be uniform among all Stock
Options issued pursuant to the Plan.

 

(b)                                  Number of Shares.  Each Stock Option shall specify the number of
Shares of Common Stock to which it pertains.

 

(c)                                  Exercise Price.  The exercise price per Share of Common Stock
under each Stock Option shall be (i) not less than 100% of the Fair Market
Value per Share on the date the Stock Option is granted and (ii) specified
in the Incentive Agreement; provided, however, if the Grantee of an ISO is a
10% or greater shareholder pursuant to Section 1.7(b),
the exercise price for the ISO shall not be less than 110% of the Fair Market
Value on the date of grant. Each Stock Option shall specify the method of
exercise which shall be consistent with Section 2.3(a).

 

(d)                                  Term.  In the Incentive Agreement, the Committee
shall fix the term of each Stock Option which shall not be more than (i) ten
(10) years from the date of grant, or (ii) five (5) years from
the date of grant for an ISO granted to a 10% or greater shareholder pursuant
to Section 1.7(b).

 

(e)                                  Exercise.  The Committee shall determine the time or
times at which a Stock Option may be exercised, in whole or in part. Each Stock
Option may specify the required period of continuous Employment and/or the
Performance Criteria to be achieved before the Stock Option or portion thereof
will become exercisable. Each Stock Option, the exercise of which, or the
timing of the exercise of which, is dependent, in whole or in part, on the
achievement of designated Performance Criteria, may specify a minimum level of
achievement in respect of the specified Performance Criteria below which no
Stock Options will be exercisable and a method for determining the number of
Stock Options that will be exercisable if performance is at or above such
minimum but short of full achievement of the Performance Criteria. All such
terms and conditions shall be set forth in the Incentive Agreement.

 

(f)                                    $100,000 Annual Limit on Incentive Stock Options.  Notwithstanding any contrary provision in the
Plan, a Stock Option designated as an ISO shall be an ISO only to the extent
that the aggregate Fair Market Value (determined as of the time the ISO is
granted) of the Shares of Common Stock with respect to which ISOs are
exercisable for the first time by the Grantee during any single calendar year
(under the Plan and any other stock option plans of the Company and its
Subsidiaries or Parent) does not exceed $100,000. This limitation shall be
applied by taking ISOs into account in the order in which they were granted and
shall be construed in accordance with Section 422(d) of the Code. To
the extent that a Stock Option intended to constitute an ISO exceeds the
$100,000 limitation (or any other limitation under Code Section 422), the
portion of the Stock Option that exceeds the $100,000 limitation (or violates
any other limitation under Code Section 422) shall be deemed a
Nonstatutory Stock Option. In such event, all other terms and provisions of
such Stock Option grant shall remain unchanged.

 

2.3                               Stock Option Exercises

 

(a)                                  Method of Exercise and Payment.  Stock Options shall be exercised by the
delivery of a signed written notice of exercise to the Company as of a date set
by the Company in advance of the effective date of the proposed exercise. The
notice shall set forth the number of Shares with respect to which the Option is
to be exercised, accompanied by full payment for the Shares.

 

The
Option Price upon exercise of any Stock Option shall be payable to the Company
in full either: (i) in cash or its equivalent; or (ii) subject to
prior approval by the Committee in its discretion, by tendering previously
acquired Shares having an aggregate Fair Market Value at the time of exercise
equal to the Option Price, (iii) subject to prior approval by the
Committee in its discretion, by withholding Shares which otherwise would be
acquired on exercise having an 

 

10

 

aggregate Fair Market Value
at the time of exercise equal to the total Option Price; or (iv) subject
to prior approval by the Committee in its discretion, by a combination of (i),
(ii), and (iii) above.

 

Any
payment in Shares shall be effected by the surrender of such Shares to the
Company in good form for transfer and shall be valued at their Fair Market
Value on the date when the Stock Option is exercised. Unless otherwise
permitted by the Committee in its discretion, the Grantee shall not surrender, or
attest to the ownership of, Shares in payment of the Option Price if such
action would cause the Company to recognize compensation expense (or additional
compensation expense) with respect to the Stock Option for financial accounting
reporting purposes.

 

The
Committee, in its discretion, also may allow the Option Price to be paid with
such other consideration as shall constitute lawful consideration for the
issuance of Shares (including, without limitation, effecting a “cashless
exercise” with a broker of the Option), subject to applicable securities law
restrictions and tax withholdings, or by any other means which the Committee
determines to be consistent with the Plan’s purpose and applicable law. At the
direction of the Grantee, the broker will either (i) sell all of the
Shares received when the Option is exercised and pay the Grantee the proceeds
of the sale (minus the Option Price, withholding taxes and any fees due to the
broker); or (ii) sell enough of the Shares received upon exercise of the
Option to cover the Option Price, withholding taxes and any fees due the broker
and deliver to the Grantee (either directly or through the Company) a stock
certificate for the remaining Shares. Dispositions to a broker effecting a
cashless exercise are not exempt under Section 16 of the Exchange Act if
the Company is a Publicly Held Corporation. Moreover, in no event will the
Committee allow the Option Price to be paid with a form of consideration,
including a loan or a “cashless exercise,” if such form of consideration would
violate the Sarbanes-Oxley Act of 2002 as determined by the Committee.

 

As
soon as practicable after receipt of a written notification of exercise and
full payment, the Company shall deliver, or cause to be delivered, to or on
behalf of the Grantee, in the name of the Grantee or other appropriate
recipient, evidence of ownership for the number of Shares purchased under the
Stock Option.

 

Subject
to Section 6.4, during the
lifetime of a Grantee, each Option granted to the Grantee shall be exercisable
only by the Grantee (or his legal guardian in the event of his Disability) or
by a broker-dealer acting on his behalf pursuant to a cashless exercise under
the foregoing provisions of this Section 2.3(a).

 

(b)                                  Restrictions on Share Transferability.  The Committee may impose such restrictions on
any grant of Stock Options or on any Shares acquired pursuant to the exercise
of a Stock Option as it may deem advisable, including, without limitation,
restrictions under (i) any shareholders’ agreement, buy/sell agreement,
right of first refusal, non-competition, and any other agreement between the
Company and any of its securities holders or employees; (ii) any
applicable federal securities laws; (iii) the requirements of any stock
exchange or market upon which such Shares are then listed and/or traded; or (iv) any
blue sky or state securities law applicable to such Shares. Any certificate
issued to evidence Shares issued upon the exercise of an Incentive Award may
bear such legends and statements as the Committee shall deem advisable to
assure compliance with applicable federal and state laws and regulations.

 

Any
Grantee or other person exercising an Incentive Award shall be required, if
requested by the Committee, to give a written representation that the Incentive
Award and the Shares subject to the Incentive Award will be acquired for
investment and not with a view to public distribution; provided, however, that
the Committee, in its discretion, may release any person receiving an Incentive
Award from any such representations either prior to or subsequent to the
exercise of the Incentive Award.

 

11

 

(c)                                  Notification of Disqualifying Disposition of Shares
from Incentive Stock Options.  Notwithstanding any other provision of the
Plan, a Grantee who disposes of Shares acquired upon the exercise of an
Incentive Stock Option by a sale or exchange either (i) within two (2) years
after the date of the grant of the Incentive Stock Option under which the
Shares were acquired or (ii) within one (1) year after the transfer
of such Shares to him pursuant to exercise, shall promptly notify the Company
of such disposition, the amount realized and his adjusted basis in such Shares.

 

(d)                                  Proceeds of Option Exercise.  The proceeds received by the Company from the
sale of Shares pursuant to Stock Options exercised under the Plan shall be used
for general corporate purposes.

 

2.4                               Stock Appreciation Rights

 

(a)                                  Grant.  The Committee may grant Stock Appreciation
Rights to any Employee, Consultant or Outside Director. Any SARs granted under
the Plan are intended to satisfy the requirements under Code Section 409A
to the effect that such SARs do not provide for the deferral of compensation
that is subject to taxation under Code Section 409A.

 

(b)                                  General Provisions.  The terms and conditions of each SAR shall be
evidenced by an Incentive Agreement. The exercise price per Share shall not be
less than one hundred percent (100%) of the Fair Market Value of a Share on the
grant date of the SAR. The term of the SAR shall be determined by the Committee
but shall not be greater than ten (10) years from the date of grant. The
Committee cannot include any feature for the deferral of compensation other
than the deferral of recognition of income until exercise of the SAR.

 

(c)                                  Exercise.  SARs shall be exercisable subject to such
terms and conditions as the Committee shall specify in the Incentive Agreement
for the SAR grant. No SAR granted to an Insider may be exercised prior to six (6) months
from the date of grant, except in the event of his death or Disability which
occurs prior to the expiration of such six-month period if so permitted under
the Incentive Agreement.

 

(d)                                  Settlement.  Upon exercise of the SAR, the Grantee shall
receive an amount equal to the Spread. The Spread, less applicable
withholdings, shall be payable only in cash or in Shares, or a combination of
both, as specified in the Incentive Agreement, within 30 calendar days of the
exercise date. In addition, the Incentive Agreement under which such SARs are
awarded, or any other agreements or arrangements, shall not provide that the
Company will purchase any Shares delivered to the Grantee as a result of the
exercise or vesting of a SAR.

 

2.5                               Supplemental Payment on Exercise of Nonstatutory Stock Options

 

The Committee, either at the
time of grant or exercise of any Nonstatutory Stock Option, may provide in the
Incentive Agreement for a Supplemental Payment by the Company to the Grantee
with respect to the exercise of any Nonstatutory Stock Option. The Supplemental
Payment shall be in the amount specified by the Committee, which amount shall
not exceed the amount necessary to pay the federal and state income tax payable
with respect to both the exercise of the Nonstatutory Stock Option and the
receipt of the Supplemental Payment, assuming the holder is taxed at either the
maximum effective income tax rate applicable thereto or at a lower tax rate as
deemed appropriate by the Committee in its discretion. No Supplemental Payments
will be made with respect to any SARs or ISOs.

 

12

 

SECTION 3.

 

RESTRICTED STOCK

 

3.1                               Award of Restricted Stock

 

(a)                                  Grant.  With respect to a Grantee who is an Employee,
Consultant or Outside Director, Shares of Restricted Stock, which may be
designated as a Performance-Based Award in the discretion of the Committee, may
be awarded by the Committee with such restrictions during the Restriction
Period as the Committee shall designate in its discretion. Any such restrictions
may differ with respect to a particular Grantee. Restricted Stock shall be
awarded for no additional consideration or such additional consideration as the
Committee may determine, which consideration may be less than, equal to or more
than the Fair Market Value of the shares of Restricted Stock on the grant date.
The terms and conditions of each grant of Restricted Stock shall be evidenced
by an Incentive Agreement and, during the Restriction Period, such Shares of
Restricted Stock must remain subject to a “substantial risk of forfeiture”
within the meaning given to such term under Code Section 83. Any
Restricted Stock Award may, at the time of grant, be designated by the
Committee as a Performance-Based Award that is intended to qualify for the
Performance-Based Exception.

 

(b)                                  Immediate Transfer Without Immediate Delivery of
Restricted Stock. 
Unless otherwise specified in the Grantee’s Incentive Agreement, each
Restricted Stock Award shall constitute an immediate transfer of the record and
beneficial ownership of the Shares of Restricted Stock to the Grantee in
consideration of the performance of services as an Employee, Consultant or
Outside Director, as applicable, entitling such Grantee to all voting and other
ownership rights in such Shares.

 

As
specified in the Incentive Agreement, a Restricted Stock Award may limit the
Grantee’s dividend rights during the Restriction Period in which the shares of
Restricted Stock are subject to a “substantial risk of forfeiture” (within the
meaning given to such term under Code Section 83) and restrictions on
transfer. In the Incentive Agreement, the Committee may apply any restrictions
to the dividends that the Committee deems appropriate. Without limiting the
generality of the preceding sentence, if the grant or vesting of Shares of a
Restricted Stock Award granted to a Covered Employee, is designed to comply
with the requirements of the Performance-Based Exception, the Committee may
apply any restrictions it deems appropriate to the payment of dividends declared
with respect to such Shares of Restricted Stock, such that the dividends and/or
the Shares of Restricted Stock maintain eligibility for the Performance-Based
Exception. In the event that any dividend constitutes a derivative security or
an equity security pursuant to the rules under Section 16 of the
Exchange Act, if applicable, such dividend shall be subject to a vesting period
equal to the remaining vesting period of the Shares of Restricted Stock with
respect to which the dividend is paid.

 

Shares
awarded pursuant to a grant of Restricted Stock, whether or not under a
Performance-Based Award, may be issued in the name of the Grantee and held,
together with a stock power endorsed in blank, by the Committee or Company (or
their delegates) or in trust or in escrow pursuant to an agreement satisfactory
to the Committee, as determined by the Committee, until such time as the
restrictions on transfer have expired. All such terms and conditions shall be
set forth in the particular Grantee’s Incentive Agreement. The Company or
Committee (or their delegates) shall issue to the Grantee a receipt evidencing
the certificates held by it which are registered in the name of the Grantee.

 

13

 

3.2                               Restrictions

 

(a)                                  Forfeiture of Restricted Stock.  Restricted Stock awarded to a Grantee may be
subject to the following restrictions until the expiration of the Restriction
Period: (i) a restriction that constitutes a “substantial risk of
forfeiture” (as defined in Code Section 83), and a restriction on
transferability; (ii) unless otherwise specified by the Committee in the
Incentive Agreement, the Restricted Stock that is subject to restrictions which
are not satisfied shall be forfeited and all rights of the Grantee to such
Shares shall terminate; and (iii) any other restrictions that the
Committee determines in advance are appropriate, including, without limitation,
rights of repurchase or first refusal in the Company or provisions subjecting
the Restricted Stock to a continuing substantial risk of forfeiture in the
hands of any transferee. Any such restrictions shall be set forth in the
particular Grantee’s Incentive Agreement.

 

(b)                                  Issuance of Certificates.  Reasonably promptly after the date of grant
with respect to Shares of Restricted Stock, the Company shall cause to be
issued a stock certificate, registered in the name of the Grantee to whom such
Shares of Restricted Stock were granted, evidencing such Shares; provided,
however, that the Company shall not cause to be issued such a stock certificate
unless it has received a stock power duly endorsed in blank with respect to
such Shares. Each such stock certificate shall bear the following legend or any
other legend approved by the Company:

 

The
transferability of this certificate and the shares of stock represented hereby
are subject to the restrictions, terms and conditions (including forfeiture and
restrictions against transfer) contained in the Global Geophysical Services, Inc.
2006 Incentive Compensation Plan and an Incentive Agreement entered into
between the registered owner of such shares and Global Geophysical Services, Inc.
A copy of the Plan and Incentive Agreement are on file in the main corporate
office of Global Geophysical Services, Inc.

 

Such
legend shall not be removed from the certificate evidencing such Shares of
Restricted Stock unless and until such Shares vest pursuant to the terms of the
Incentive Agreement.

 

(c)                                  Removal of Restrictions.  The Committee, in its discretion, shall have
the authority to remove any or all of the restrictions on the Restricted Stock
if it determines that, by reason of a change in applicable law or another
change in circumstance arising after the grant date of the Restricted Stock,
such action is necessary or appropriate.

 

3.3                               Delivery of Shares of Common Stock

 

Subject to withholding taxes
under Section 7.3 and to the
terms of the Incentive Agreement, a stock certificate evidencing the Shares of
Restricted Stock with respect to which the restrictions in the Incentive
Agreement have been satisfied shall be delivered to the Grantee or other
appropriate recipient free of restrictions.

 

3.4                               Supplemental Payment on Vesting of Restricted Stock

 

The Committee, either at the
time of grant or vesting of Restricted Stock, may provide for a Supplemental
Payment by the Company to the holder in an amount specified by the Committee,
which amount shall not exceed the amount necessary to pay the federal and state
income tax payable with respect to both the vesting of the Restricted Stock and
receipt of the Supplemental Payment, assuming the Grantee is taxed at either
the maximum effective income tax rate applicable thereto or at a lower tax rate
as deemed appropriate by the Committee in its discretion.

 

14

 

SECTION 4.

 

OTHER STOCK-BASED AWARDS

 

4.1                               Grant of Other Stock-Based Awards

 

Other Stock-Based Awards may
be awarded by the Committee to Grantees that are payable in Shares or in cash,
as determined in the discretion of the Committee to be consistent with the
goals of the Company. Other types of Stock-Based Awards that are payable in
Shares include, without limitation, purchase rights, Shares awarded that are
not subject to any restrictions or conditions, Shares awarded subject to the
satisfaction of specified Performance Criteria, convertible or exchangeable
debentures, other rights convertible into Shares, Incentive Awards valued by
reference to the performance of a specified Subsidiary, division or department
of the Company, and settlement in cancellation of rights of any person with a
vested interest in any other plan, fund, program or arrangement that is or was
sponsored, maintained or participated in by the Company (or any Parent or
Subsidiary). As is the case with other types of Incentive Awards, Other
Stock-Based Awards may be awarded either alone or in addition to or in
conjunction with any other Incentive Awards. Other Stock-Based Awards that are
payable in Shares are not intended to be deferred compensation subject to
taxation under Code Section 409A, unless otherwise determined by the
Committee at the time of grant.

 

In addition to Other
Stock-Based Awards that are payable in Shares, the Committee may award
Restricted Stock Units to a Grantee that are payable in Shares or cash, or in a
combination thereof. Restricted Stock Units are not intended to be deferred
compensation that is subject to Code Section 409A. During the period
beginning on the date such Incentive Award is granted and ending on the payment
date specified in the Incentive Agreement, the Grantee’s right to payment under
the Incentive Agreement must remain subject to a “substantial risk of
forfeiture” within the meaning of such term under Code Section 409A. In
addition, payment to the Grantee under the Incentive Agreement shall be made
within two and one-half months (21/2) months following the end of the calendar year in which the
substantial risk of forfeiture lapses unless an earlier payment date is
specified in the Incentive Agreement.

 

4.2                               Other Stock-Based Award Terms

 

(a)                                  Written Agreement.  The terms and conditions of each grant of an
Other Stock-Based Award shall be evidenced by an Incentive Agreement.

 

(b)                                  Purchase Price.  Except to the extent that an Other
Stock-Based Award is granted in substitution for an outstanding Incentive Award
or is delivered upon exercise of a Stock Option, the amount of consideration
required to be received by the Company shall be either (i) no
consideration other than services rendered (in the case of authorized and
unissued shares), or to be rendered, by the Grantee, or (ii) as otherwise
specified in the Incentive Agreement.

 

(c)                                  Performance Criteria and Other Terms.  The Committee may specify Performance
Criteria for (i) vesting in Other Stock-Based Awards and (ii) payment
thereof to the Grantee, as it may determine in its discretion. The extent to
which any such Performance Criteria have been met shall be determined and
certified by the Committee in accordance with the requirements to qualify for
the Performance-Based Exception under Code Section 162(m). All terms and
conditions of Other Stock-Based Awards shall be determined by the Committee and
set forth in the Incentive Agreement.

 

4.3                               Supplemental Payment on Other Stock-Based Awards

 

The Committee, either at the
time of grant or vesting of an Other Stock-Based Award, may provide for a
Supplemental Payment by the Company to the holder in an amount specified by the
Committee, which amount shall not exceed the amount necessary to pay the
federal and state income tax payable with respect to both the vesting of the
Other Stock-Based Award and receipt of the 

 

15

 

Supplemental Payment, assuming the Grantee is
taxed at either the maximum effective income tax rate applicable thereto or at
a lower tax rate as deemed appropriate by the Committee in its discretion.

 

SECTION 5.

 

PERFORMANCE-BASED AWARDS AND PERFORMANCE
CRITERIA

 

As determined by the
Committee at the time of grant, Performance-Based Awards may be granted subject
to performance objectives relating to one or more of the following within the
meaning of Code Section 162(m) (the “Performance Criteria”) in order to qualify for the
Performance-Based Exception:

 

(a)                                  profits
(including, but not limited to, profit growth, net operating profit or economic
profit);

 

(b)                                 profit-related
return ratios;

 

(c)                                  return measures
(including, but not limited to, return on assets, capital, equity, investment
or sales);

 

(d)                                 cash flow
(including, but not limited to, operating cash flow, free cash flow or cash
flow return on capital or investments);

 

(e)                                  earnings
(including but not limited to, total shareholder return, earnings per share or
earnings before or after taxes);

 

(f)                                    net sales
growth;

 

(g)                                 net earnings or
income (before or after taxes, interest, depreciation and/or amortization);

 

(h)                                 gross,
operating or net profit margins;

 

(i)                                     productivity
ratios;

 

(j)                                     share price
(including, but not limited to, growth measures and total shareholder return);

 

(k)                                  turnover of
assets, capital, or inventory;

 

(l)                                     expense
targets;

 

(m)                               margins;

 

(n)                                 measures of
health, safety or environment;

 

(o)                                 operating
efficiency;

 

(p)                                 customer
service or satisfaction;

 

(q)                                 market share;

 

(r)                                    credit quality;

 

(s)                                  debt ratios (e.g., debt to equity and debt to total
capital); and

 

(t)                                    working capital
targets.

 

Performance Criteria may be
stated in absolute terms or relative to comparison companies or indices to be
achieved during a Performance Period. In the Incentive Agreement, the Committee
shall establish one or more Performance Criteria for each Incentive Award that
is intended to qualify for the Performance-Based Exception on its grant date.

 

In establishing the
Performance Criteria for each applicable Incentive Award, the Committee may
provide that the effect of specified extraordinary or unusual events will be
included or excluded (including, but not limited to, items of gain, loss or
expense determined to be extraordinary or unusual in nature or infrequent in
occurrence, or related to the disposal of a segment of business or a change 

 

16

 

in accounting principle, each as determined
in accordance with the standards under Opinion No. 30 of the Accounting
Principles Board (APB Opinion 30) or any successor or other authoritative
financial accounting standards, as determined by the Committee). The terms of
the stated Performance Criteria for each applicable Incentive Award, whether
for a Performance Period of one (1) year or multiple years, must preclude
the Committee’s discretion to increase the amount payable to any Grantee that
would otherwise be due upon attainment of the Performance Criteria, but may
permit the Committee to reduce the amount otherwise payable to the Grantee in
the Committee’s discretion.

 

The Performance Criteria
specified in any Incentive Agreement need not be applicable to all Incentive
Awards, and may be particular to an individual Grantee’s function or business
unit. The Committee may establish the Performance Criteria of the Company (or
any entity which is affiliated by common ownership with the Company) as
determined and designated by the Committee, in its discretion, in the Incentive
Agreement.

 

Performance-Based Awards
will be granted in the discretion of the Committee and will be (a) sufficiently
objective so that an independent person or entity having knowledge of the
relevant facts could determine the amount payable to Grantee, if applicable,
and whether the pre-determined goals have been achieved with respect to the
Incentive Award, (b) established at a time when the performance outcome is
substantially uncertain, (c) established in writing no later than ninety
(90) days after the commencement of the Performance Period to which they
apply, and (d) based on operating earnings, performance against peers,
earnings criteria or such other criteria as provided in this Section 5.

 

SECTION 6.

 

PROVISIONS RELATING TO PLAN PARTICIPATION

 

6.1                               Incentive Agreement

 

Each Grantee to whom an
Incentive Award is granted shall be required to enter into an Incentive
Agreement with the Company, in such a form as is provided by the Committee. The
Incentive Agreement shall contain specific terms as determined by the
Committee, in its discretion, with respect to the Grantee’s particular
Incentive Award. Such terms need not be uniform among all Grantees or any
similarly situated Grantees. The Incentive Agreement may include, without
limitation, vesting, forfeiture and other provisions particular to the
particular Grantee’s Incentive Award, as well as, for example, provisions to
the effect that the Grantee (a) shall not disclose any confidential
information acquired during Employment with the Company, (b) shall abide
by all the terms and conditions of the Plan and such other terms and conditions
as may be imposed by the Committee, (c) shall not interfere with the
employment or other service of any employee, (d) shall not compete with
the Company or become involved in a conflict of interest with the interests of
the Company, (e) shall forfeit an Incentive Award if terminated for Cause,
(f) shall not be permitted to make an election under Code Section 83(b) when
applicable, and (g) shall be subject to any other agreement between the
Grantee and the Company regarding Shares that may be acquired under an
Incentive Award including, without limitation, a shareholders’ agreement,
buy-sell agreement, or other agreement restricting the transferability of
Shares by Grantee. An Incentive Agreement shall include such terms and
conditions as are determined by the Committee, in its discretion, to be
appropriate with respect to any individual Grantee. The Incentive Agreement
shall be signed by the Grantee to whom the Incentive Award is made and by an
Authorized Officer.

 

6.2                               No Right to Employment

 

Nothing in the Plan or any
instrument executed pursuant to the Plan shall create any Employment rights
(including without limitation, rights to continued Employment) in any Grantee
or affect the right 

 

17

 

of the Company to terminate the Employment of
any Grantee at any time without regard to the existence of the Plan.

 

6.3                               Securities Requirements

 

The Company shall be under
no obligation to effect the registration of any Shares to be issued hereunder
pursuant to the Securities Act of 1933, or to effect similar compliance under
any state laws. Notwithstanding anything herein to the contrary, the Company
shall not be obligated to cause to be issued or delivered any certificates
evidencing Shares pursuant to the Plan unless and until the Company is advised
by its counsel that the issuance and delivery of such certificates is in
compliance with all applicable laws, regulations of governmental authorities,
and the requirements of any securities exchange on which Shares are traded. The
Committee may require, as a condition of the issuance and delivery of
certificates evidencing Shares pursuant to the terms hereof, that the recipient
of such Shares make such covenants, agreements and representations, and that
such certificates bear such legends, as the Committee, in its discretion, deems
necessary or desirable.

 

The Committee may, in its
discretion, defer the effectiveness of any exercise of an Incentive Award in
order to allow the issuance of Shares to be made pursuant to registration or an
exemption from registration or other methods for compliance available under
federal or state securities laws. The Committee shall inform the Grantee in
writing of its decision to defer the effectiveness of the exercise of an
Incentive Award. During the period that the effectiveness of the exercise of an
Incentive Award has been deferred, the Grantee may, by written notice to the
Committee, withdraw such exercise and obtain the refund of any amount paid with
respect thereto.

 

If the Shares issuable on
exercise of an Incentive Award are not registered under the Securities Act of
1933, the Company may imprint on the certificate for such Shares the following
legend or any other legend which counsel for the Company considers necessary or
advisable to comply with the Securities Act of 1933:

 

THE SECURITIES REPRESENTED
BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933,
AS AMENDED (“ACT”), OR THE SECURITIES LAWS OF ANY STATE. THE SECURITIES MAY NOT
BE TRANSFERRED EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER
SUCH ACT AND APPLICABLE STATE SECURITIES LAWS OR PURSUANT TO ANY APPLICABLE
EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF SUCH ACT AND SUCH LAWS OR
PURSUANT TO A WRITTEN OPINION OF COUNSEL REASONABLY SATISFACTORY TO THE COMPANY
THAT SUCH REGISTRATION IS NOT REQUIRED.

 

6.4                               Transferability

 

Incentive Awards granted
under the Plan shall not be transferable or assignable other than: (a) by
will or the laws of descent and distribution or (b) pursuant to a
qualified domestic relations order (as defined under Code Section 414(p));
provided, however, only with respect to Incentive Awards consisting of
Nonstatutory Stock Options, the Committee may, in its discretion, authorize all
or a portion of the Nonstatutory Stock Options to be granted on terms which
permit transfer by the Grantee to (i) the members of the Grantee’s
Immediate Family, (ii) a trust or trusts for the exclusive benefit of
Immediate Family members, (iii) a partnership in which such Immediate
Family members are the only partners, or (iv) any other entity owned
solely by Immediate Family members; provided that (A) there may be no
consideration for any such transfer, (B) the Incentive Agreement pursuant
to which such Nonstatutory Stock Options are granted must be approved by the
Committee, and must expressly provide for transferability in a manner
consistent with this Section 6.4,
(C) subsequent transfers of transferred Nonstatutory Stock Options shall
be prohibited except in accordance with clauses (a) and (b) (above)
of this sentence, and (D) there may be no transfer of any Incentive Award

 

18

 

in a listed transaction as described in IRS
Notice 2003-47. Following any permitted transfer, the Nonstatutory Stock Option
shall continue to be subject to the same terms and conditions as were
applicable immediately prior to transfer, provided that the term “Grantee”
shall be deemed to refer to the transferee. The events of termination of
employment, as set out in Section 6.7
and in the Incentive Agreement, shall continue to be applied with respect to
the original Grantee, and the Incentive Award shall be exercisable by the
transferee only to the extent, and for the periods, specified in the Incentive
Agreement.

 

Except as may otherwise be
permitted under the Code, in the event of a permitted transfer of a
Nonstatutory Stock Option hereunder, the original Grantee shall remain subject
to withholding taxes upon exercise. In addition, the Company and the Committee
shall have no obligation to provide any notices to any Grantee or transferee
thereof, including, for example, notice of the expiration of an Incentive Award
following the original Grantee’s termination of employment.

 

The designation by a Grantee
of a beneficiary of an Incentive Award shall not constitute transfer of the
Incentive Award. No transfer by will or by the laws of descent and distribution
shall be effective to bind the Company unless the Committee has been furnished
with a copy of the deceased Grantee’s enforceable will or such other evidence
as the Committee deems necessary to establish the validity of the transfer. Any
attempted transfer in violation of this Section 6.4
shall be void and ineffective. All determinations under this Section 6.4 shall be made by the
Committee in its discretion.

 

6.5                               Rights as a Shareholder

 

(a)                                  No Shareholder Rights.  Except as otherwise provided in Section 3.1(b) for grants of
Restricted Stock, a Grantee of an Incentive Award (or a permitted transferee of
such Grantee) shall have no rights as a shareholder with respect to any Shares
until the issuance of a stock certificate or other record of ownership for such
Shares.

 

(b)                                  Representation of Ownership.  In the case of the exercise of an Incentive
Award by a person or estate acquiring the right to exercise such Incentive
Award by reason of the death or Disability of a Grantee, the Committee may
require reasonable evidence as to the ownership of such Incentive Award or the
authority of such person. The Committee may also require such consents and
releases of taxing authorities as it deems advisable.

 

6.6                               Change in Stock and Adjustments

 

(a)                                  Changes in Law or Circumstances.  Subject to Section 6.8
(which only applies in the event of a Change in Control), in the event of any
change in applicable law or any change in circumstances which results in or
would result in any dilution of the rights granted under the Plan, or which
otherwise warrants an equitable adjustment because it interferes with the
intended operation of the Plan, then, if the Board or Committee should so
determine, in its absolute discretion, that such change equitably requires an
adjustment in the number or kind of shares of stock or other securities or
property theretofore subject, or which may become subject, to issuance or
transfer under the Plan or in the terms and conditions of outstanding Incentive
Awards, such adjustment shall be made in accordance with such determination.
Such adjustments may include changes with respect to (i) the aggregate
number of Shares that may be issued under the Plan, (ii) the number of
Shares subject to Incentive Awards, and (iii) the Option Price or other
price per Share for outstanding Incentive Awards, but shall not result in the
grant of any Stock Option with an exercise price less than 100% of the Fair
Market Value per Share on the date of grant. The Board or Committee shall give
notice to each applicable Grantee of such adjustment which shall be effective
and binding.

 

(b)                                  Exercise of Corporate Powers.  The existence of the Plan or outstanding
Incentive Awards hereunder shall not affect in any way the right or power of
the Company or its shareholders to make or authorize any or all adjustments,
recapitalization, reorganization or other changes in the 

 

19

 

Company’s capital structure
or its business or any merger or consolidation of the Company, or any issue of
bonds, debentures, preferred or prior preference stocks ahead of or affecting
the Common Stock or the rights thereof, or the dissolution or liquidation of
the Company, or any sale or transfer of all or any part of its assets or
business, or any other corporate act or proceeding whether of a similar
character or otherwise.

 

(c)                                  Recapitalization of the Company.  Subject to Section 6.8
(which only applies in the event of a Change in Control), if while there are
Incentive Awards outstanding, the Company shall effect any subdivision or
consolidation of Common Stock or other capital readjustment, the payment of a
stock dividend, stock split, combination of Shares, recapitalization or other
increase or reduction in the number of Shares outstanding, without receiving compensation
therefor in money, services or property, then the number of Shares available
under the Plan and the number of Incentive Awards which may thereafter be
exercised shall (i) in the event of an increase in the number of Shares
outstanding, be proportionately increased and the Option Price or Fair Market
Value of the Incentive Awards awarded shall be proportionately reduced; and (ii)
in the event of a reduction in the number of Shares outstanding, be
proportionately reduced, and the Option Price or Fair Market Value of the
Incentive Awards awarded shall be proportionately increased. The Board or
Committee shall take such action and whatever other action it deems
appropriate, in its discretion, so that the value of each outstanding Incentive
Award to the Grantee shall not be adversely affected by a corporate event
described in this Section 6.6(c).

 

(d)                                  Issue of Common Stock by the Company.  Except as hereinabove expressly provided in
this Section 6.6 and subject
to Section 6.8 in the event
of a Change in Control, the issue by the Company of shares of stock of any
class, or securities convertible into shares of stock of any class, for cash or
property, or for labor or services, either upon direct sale or upon the
exercise of rights or warrants to subscribe therefor, or upon any conversion of
shares or obligations of the Company convertible into such shares or other
securities, shall not affect, and no adjustment by reason thereof shall be made
with respect to, the number of, or Option Price or Fair Market Value of, any
Incentive Awards then outstanding under previously granted Incentive Awards;
provided, however, in such event, outstanding Shares of Restricted Stock shall
be treated the same as outstanding unrestricted Shares of Common Stock.

 

(e)                                  Assumption under the Plan of Outstanding Stock Options.  Notwithstanding any other provision of the
Plan, the Board or Committee, in its discretion, may authorize the assumption
and continuation under the Plan of outstanding and unexercised stock options or
other types of stock-based incentive awards that were granted under a stock
option plan (or other type of stock incentive plan or agreement) that is or was
maintained by a corporation or other entity that was merged into, consolidated
with, or whose stock or assets were acquired by, the Company as the surviving
corporation. Any such action shall be upon such terms and conditions as the
Board or Committee, in its discretion, may deem appropriate, including
provisions to preserve the holder’s rights under the previously granted and
unexercised stock option or other stock-based incentive award; such as, for
example, retaining an existing exercise price under an outstanding stock
option. Any such assumption and continuation of any such previously granted and
unexercised incentive award shall be treated as an outstanding Incentive Award
under the Plan and shall thus count against the number of Shares reserved for
issuance pursuant to Section 1.4.
In addition, any Shares issued by the Company through the assumption or substitution
of outstanding grants from an acquired company shall reduce the Shares
available for grants under Section 1.4.

 

(f)                                    Assumption of Incentive Awards by a Successor.  Subject to the accelerated vesting and other
provisions of Section 6.8
that apply in the event of a Change in Control, in the event of a Corporate
Event (defined below), each Grantee shall be entitled to receive, in lieu of
the number of Shares subject to Incentive Awards, such shares of capital stock
or other securities or property as may be issuable or payable with respect to
or in exchange for the number of Shares which 

 

20

 

Grantee would have received
had he exercised the Incentive Award immediately prior to such Corporate Event,
together with any adjustments (including, without limitation, adjustments to
the Option Price and the number of Shares issuable on exercise of outstanding
Stock Options). For this purpose, Shares of Restricted Stock shall be treated
the same as unrestricted outstanding Shares of Common Stock. A “Corporate Event”
means any of the following: (i) a dissolution or liquidation of the
Company, (ii) a sale of all or substantially all of the Company’s assets,
or (iii) a merger, consolidation or combination involving the Company
(other than a merger, consolidation or combination (A) in which the
Company is the continuing or surviving corporation and (B) which does not
result in the outstanding Shares being converted into or exchanged for
different securities, cash or other property, or any combination thereof). The
Board or Committee shall take whatever other action it deems appropriate to
preserve the rights of Grantees holding outstanding Incentive Awards.

 

Notwithstanding
the previous paragraph of this Section 6.6(f),
but subject to the accelerated vesting and other provisions of Section 6.8 that apply in the event
of a Change in Control, in the event of a Corporate Event (described in the
previous paragraph), the Board or Committee, in its discretion, shall have the
right and power to:

 

(i)                                     cancel,
effective immediately prior to the occurrence of the Corporate Event, each
outstanding Incentive Award (whether or not then exercisable) and, in full
consideration of such cancellation, pay to the Grantee an amount in cash equal to
the excess of (A) the value, as determined by the Board or Committee, of
the property (including cash) received by the holders of Common Stock as a
result of such Corporate Event over (B) the exercise price of such
Incentive Award, if any; provided, however, this subsection (i) shall be
inapplicable to an Incentive Award granted within six (6) months before
the occurrence of the Corporate Event if the Grantee is an Insider and such
disposition is not exempt under Rule 16b-3 (or other rules preventing
liability of the Insider under Section 16(b) of the Exchange Act)
and, in that event, the provisions hereof shall be applicable to such Incentive
Award after the expiration of six (6) months from the date of grant; or

 

(ii)                                  provide for the
exchange or substitution of each Incentive Award outstanding immediately prior
to such Corporate Event (whether or not then exercisable) for another award
with respect to the Common Stock or other property for which such Incentive
Award is exchangeable and, incident thereto, make an equitable adjustment as
determined by the Board or Committee, in its discretion, in the Option Price or
exercise price of the Incentive Award, if any, or in the number of Shares or
amount of property (including cash) subject to the Incentive Award; or

 

(iii)                               provide for
assumption of the Plan and such outstanding Incentive Awards by the surviving
entity or its parent.

 

The
Board or Committee, in its discretion, shall have the authority to take
whatever action it deems to be necessary or appropriate to effectuate the
provisions of this Section 6.6(f).

 

6.7                               Termination of Employment, Death, Disability and Retirement

 

(a)                                  Termination of Employment.  Unless otherwise expressly provided in the
Grantee’s Incentive Agreement or the Plan, if the Grantee’s Employment is
terminated for any reason other than due to his death, Disability, Retirement
or for Cause, any non-vested portion of any Stock Option or other Incentive
Award at the time of such termination shall automatically expire and terminate
and no further vesting shall occur after the termination date. In such event,
except as otherwise expressly provided in his Incentive Agreement, the Grantee
shall be entitled to exercise his rights only with respect to the portion of
the Incentive Award that was vested as of his termination of Employment date
for a period that shall end on the earlier of (i) the expiration 

 

21

 

date set forth in the
Incentive Agreement or (ii) ninety (90) days after the date of his
termination of Employment.

 

(b)                                  Termination of Employment for Cause.  Unless otherwise expressly provided in the
Grantee’s Incentive Agreement or the Plan, in the event of the termination of a
Grantee’s Employment for Cause, all vested and non-vested Stock Options and
other Incentive Awards granted to such Grantee shall immediately expire, and
shall not be exercisable to any extent, as of 12:01 a.m. (CST) on the date
of such termination of Employment.

 

(c)                                  Retirement.  Unless otherwise expressly provided in the
Grantee’s Incentive Agreement or the Plan, upon the termination of Employment
due to the Grantee’s Retirement:

 

(i)                                     any non-vested
portion of any outstanding Option or other Incentive Award shall immediately
terminate and no further vesting shall occur; and

 

(ii)                                  any vested
Option or other Incentive Award shall expire on the earlier of (A) the
expiration date set forth in the Incentive Agreement for such Incentive Award;
or (B) the expiration of (1) six (6) months after the date of
his termination of Employment due to Retirement in the case of any Incentive
Award other than an Incentive Stock Option or (2) three months after his
termination date in the case of an Incentive Stock Option.

 

(d)                                  Disability or Death.  Unless otherwise expressly provided in the Grantee’s
Incentive Agreement or the Plan, upon termination of Employment as a result of
the Grantee’s Disability or death:

 

(i)                                     any non-vested
portion of any outstanding Option or other Incentive Award shall immediately
terminate upon termination of Employment and no further vesting shall occur;
and

 

(ii)                                  any vested
Incentive Award shall expire on the earlier of either (A) the expiration
date set forth in the Incentive Agreement or (B) the one year anniversary
date of the Grantee’s termination of Employment date.

 

In
the case of any vested Incentive Stock Option held by an Employee following
termination of Employment, notwithstanding the definition of “Disability” in Section 1.2, whether the Employee has
incurred a “Disability” for purposes of determining the length of the Option
exercise period following termination of Employment under this Section 6.7(d) shall be
determined by reference to Code Section 22(e)(3) to the extent
required by Code Section 422(c)(6). The Committee shall determine whether
a Disability for purposes of this Section 6.7(d) has
occurred.

 

(e)                                  Continuation.  Subject to the conditions and limitations of
the Plan and applicable law and regulation in the event that a Grantee ceases
to be an Employee, Outside Director or Consultant, as applicable, for whatever
reason, the Committee and Grantee may mutually agree with respect to any
outstanding Option or other Incentive Award then held by the Grantee (i) for
an acceleration or other adjustment in any vesting schedule applicable to the
Incentive Award; (ii) for a continuation of the exercise period following
termination for a longer period than is otherwise provided under such Incentive
Award; or (iii) to any other change in the terms and conditions of the
Incentive Award. In the event of any such change to an outstanding Incentive
Award, a written amendment to the Grantee’s Incentive Agreement shall be
required. No amendment to a Grantee’s Incentive Award shall be made to the
extent compensation payable pursuant thereto as a result of such amendment
would be considered deferred compensation subject to taxation under Code Section 409A,
unless otherwise determined by the Committee.

 

6.8                               Change in Control

 

Notwithstanding any contrary
provision in the Plan, in the event of a Change in Control (as defined below),
the following actions shall automatically occur as of the day immediately
preceding the 

 

22

 

Change in Control date unless expressly
provided otherwise in the individual Grantee’s Incentive Agreement:

 

(a)                                  all of the
Stock Options and Stock Appreciation Rights then outstanding shall become 100%
vested and immediately and fully exercisable;

 

(b)                                 all of the
restrictions and conditions of any Restricted Stock Awards, Restricted Stock
Units and any Other Stock-Based Awards then outstanding shall be deemed
satisfied, and the Restriction Period with respect thereto shall be deemed to
have expired, and thus each such Incentive Award shall become free of all
restrictions and fully vested; and

 

(c)                                  all of the
Performance-Based Awards shall become fully vested, deemed earned in full, and
promptly paid within thirty (30) days to the affected Grantees without
regard to payment schedules and notwithstanding that the applicable performance
cycle, retention cycle or other restrictions and conditions have not been
completed or satisfied.

 

For all purposes of this
Plan, a “Change in Control” of the
Company means the occurrence of any one or more of the following events:

 

(a)                                  The acquisition
by any individual, entity or group (within the meaning of Section 13(d)(3) or
14(d)(2) of the Exchange Act (a “Person”))
of beneficial ownership (within the meaning of Rule 13d-3 promulgated
under the Exchange Act) of fifty percent (50%) or more of either (i) the
then outstanding shares of common stock of the Company (the “Outstanding Company Stock”) or (ii) the
combined voting power of the then outstanding voting securities of the Company
entitled to vote generally in the election of directors (the “Outstanding Company Voting Securities”);
provided, however, that the following acquisitions shall not constitute a
Change in Control: (i) any acquisition directly from the Company or any
Subsidiary, (ii) any acquisition by the Company or any Subsidiary or by
any employee benefit plan (or related trust) sponsored or maintained by the
Company or any Subsidiary, or (iii) any acquisition by any corporation
pursuant to a reorganization, merger, consolidation or similar business
combination involving the Company (a “Merger”),
if, following such Merger, the conditions described in Section 6.8(c) (below) are
satisfied;

 

(b)                                 Individuals
who, as of the Effective Date, constitute the Board of Directors of the Company
(the “Incumbent Board”) cease for
any reason to constitute at least a majority of the Board; provided, however,
that any individual becoming a director subsequent to the Effective Date whose
election, or nomination for election by the Company’s shareholders, was
approved by a vote of at least a majority of the directors then comprising the
Incumbent Board shall be considered as though such individual were a member of
the Incumbent Board, provided that any such individual whose initial assumption
of office occurs as a result of either an actual or threatened election contest
(as such terms are used in Rule 14a-11 of Regulation 14A promulgated
under the Exchange Act) or other actual or threatened solicitation of proxies
or consents by or on behalf of a Person other than the Board shall not be
considered a member of the Incumbent Board;

 

(c)                                  Approval by the
shareholders of the Company of a Merger, unless immediately following such
Merger, (i) the holders of the Outstanding Company Voting Securities
immediately prior to Merger beneficially own, directly or indirectly, more than
50% of the common stock of the corporation resulting from such Merger (or its
parent corporation) in substantially the same proportions as their ownership of
Outstanding Company Voting Securities immediately prior to such Merger and (ii) at
least a majority of the members of the board of directors of the corporation
resulting from such Merger (or its parent corporation) were members of the
Incumbent Board at the time of the execution of the initial agreement providing
for such Merger;

 

23

 

(d)                                 The sale or
other disposition of all or substantially all of the assets of the Company,
unless immediately following such sale or other disposition, (i) the
holders of the Outstanding Company Voting Securities immediately prior to the consummation
of such sale or other disposition beneficially own, directly or indirectly,
more than 50% of the common stock of the corporation acquiring such assets in
substantially the same proportions as their ownership of Outstanding Company
Voting Securities immediately prior to the consummation of such sale or
disposition, and (ii) at least a majority of the members of the board of
directors of such corporation (or its parent corporation) were members of the
Incumbent Board at the time of execution of the initial agreement or action of
the Board providing for such sale or other disposition of assets of the
Company; or

 

(e)                                  The adoption of
any plan or proposal for the liquidation or dissolution of the Company.

 

Notwithstanding the
occurrence of any of the foregoing events set out in this Section 6.8 which would otherwise
result in a Change in Control, the Board may determine in its discretion, if it
deems it to be in the best interest of the Company, that an event or events
otherwise constituting or reasonably leading to a Change in Control shall not
be deemed a Change in Control hereunder. Such determination shall be effective
only if it is made by the Board (i) prior to the occurrence of an event
that otherwise would be, or reasonably lead to, a Change in Control, or (ii) after
such event only if made by the Board a majority of which is composed of
directors who were members of the Board immediately prior to the event that
otherwise would be, or reasonably lead to, a Change in Control.

 

Notwithstanding the
foregoing provisions of this Section 6.8,
to the extent that any payment or acceleration hereunder is subject to Code Section 409A
for deferred compensation, then the term Change in Control hereunder shall be
construed to have the meaning as set forth in Code Section 409A(2)(A)(v),
but only to the extent inconsistent with the foregoing provisions of the Change
in Control definition (above) as determined by the Committee.

 

6.9                               Exchange of Incentive Awards

 

The Committee may, in its
discretion, permit any Grantee to surrender outstanding Incentive Awards in
order to exercise or realize his rights under other Incentive Awards or in
exchange for the grant of new Incentive Awards, or require holders of Incentive
Awards to surrender outstanding Incentive Awards (or comparable rights under
other plans or arrangements) as a condition precedent to the grant of new
Incentive Awards. No exchange of Incentive Awards shall be made under this Section 6.9 if such surrender causes
any Incentive Award to provide for the deferral of compensation in a manner
that is subject to taxation under Code Section 409A unless otherwise
determined by the Committee.

 

6.10                        Financing

 

Subject to the requirements
of the Sarbanes-Oxley Act of 2002, the Company may extend and maintain, or
arrange for and guarantee, the extension and maintenance of financing to any
Grantee to purchase Shares pursuant to exercise of an Incentive Award upon such
terms as are approved by the Committee in its discretion.

 

SECTION 7.

 

GENERAL

 

7.1                               Effective Date and Grant Period

 

The Plan shall be subject to
the approval of the shareholders of the Company within twelve (12) months
after the Effective Date. Incentive Awards may be granted under the Plan at any
time prior to receipt of such shareholder approval; provided, however, if the
requisite shareholder approval is not obtained within such 12-month period, any
Incentive Awards granted hereunder shall 

 

24

 

automatically become null and void and of no
force or effect. Notwithstanding the foregoing, any Incentive Award that is
intended to satisfy the Performance-Based Exception shall not be granted until
the terms of the Plan are disclosed to, and approved by, shareholders of the
Company in accordance with the requirements of the Performance-Based Exception.

 

7.2                               Funding and Liability of Company

 

No provision of the Plan
shall require the Company, for the purpose of satisfying any obligations under
the Plan, to purchase assets or place any assets in a trust or other entity to
which contributions are made, or otherwise to segregate any assets. In
addition, the Company shall not be required to maintain separate bank accounts,
books, records or other evidence of the existence of a segregated or separately
maintained or administered fund for purposes of the Plan. Although bookkeeping
accounts may be established with respect to Grantees who are entitled to cash,
Common Stock or rights thereto under the Plan, any such accounts shall be used
merely as a bookkeeping convenience. The Company shall not be required to
segregate any assets that may at any time be represented by cash, Common Stock
or rights thereto. The Plan shall not be construed as providing for such
segregation, nor shall the Company, the Board or the Committee be deemed to be
a trustee of any cash, Common Stock or rights thereto. Any liability or
obligation of the Company to any Grantee with respect to an Incentive Award
shall be based solely upon any contractual obligations that may be created by
this Plan and any Incentive Agreement, and no such liability or obligation of
the Company shall be deemed to be secured by any pledge or other encumbrance on
any property of the Company. The Company, Board, and Committee shall not be
required to give any security or bond for the performance of any obligation
that may be created by the Plan.

 

7.3                               Withholding Taxes

 

(a)                                  Tax Withholding.  The Company shall have the power and the
right to deduct or withhold, or require a Grantee to remit to the Company, an
amount sufficient to satisfy federal, state, and local taxes, domestic or
foreign, required by law or regulation to be withheld with respect to any
taxable event arising as a result of the Plan or an Incentive Award hereunder.
Upon the lapse of restrictions on Restricted Stock, the Committee, in its
discretion, may elect to satisfy the tax withholding requirement, in whole or
in part, by having the Company withhold Shares having a Fair Market Value on
the date the tax is to be determined equal to the minimum withholding taxes which
could be imposed on the transaction as determined by the Committee.

 

(b)                                  Share Withholding.  With respect to tax withholding required upon
the exercise of Stock Options or SARs, upon the lapse of restrictions on
Restricted Stock, or upon any other taxable event arising as a result of any
Incentive Awards, Grantees may elect, subject to the approval of the Committee
in its discretion, to satisfy the withholding requirement, in whole or in part,
by having the Company withhold Shares having a Fair Market Value on the date
the tax is to be determined equal to the minimum withholding taxes which could
be imposed on the transaction as determined by the Committee. All such
elections shall be made in writing, signed by the Grantee, and shall be subject
to any restrictions or limitations that the Committee, in its discretion, deems
appropriate.

 

(c)                                  Incentive Stock Options.  With respect to Shares received by a Grantee
pursuant to the exercise of an Incentive Stock Option, if such Grantee disposes
of any such Shares within (i) two years from the date of grant of such
Option or (ii) one year after the transfer of such shares to the Grantee,
the Company shall have the right to withhold from any salary, wages or other
compensation payable by the Company to the Grantee an amount sufficient to
satisfy the minimum withholding taxes which could be imposed with respect to
such disqualifying disposition.

 

(d)                                  Loans.  To the extent permitted by the Sarbanes-Oxley
Act of 2002 or other applicable law, the Committee may provide for loans, on
either a short term or demand basis, from the 

 

25

 

Company to a Grantee who is
an Employee or Consultant to permit the payment of taxes required by law.

 

7.4                               No Guarantee of Tax Consequences

 

Neither the Company nor the
Committee makes any commitment or guarantee that any federal, state, local or
foreign tax treatment will apply or be available to any person participating or
eligible to participate hereunder.

 

7.5                               Designation of Beneficiary by Participant

 

Each Grantee may, from time
to time, name any beneficiary or beneficiaries (who may be named contingently
or successively) to whom any benefit under the Plan is to be paid in case of
his death before he receives any or all of such benefit. Each such designation
shall revoke all prior designations by the same Grantee, shall be in a form
prescribed by the Committee, and will be effective only when filed by the
Grantee in writing with the Committee (or its delegate), and received and
accepted during the Grantee’s lifetime. In the absence of any such designation,
benefits remaining unpaid at the Grantee’s death shall be paid to the Grantee’s
estate.

 

7.6                               Deferrals

 

The Committee shall not
permit a Grantee to defer such Grantee’s receipt of the payment of cash or the
delivery of Shares under the terms of his Incentive Agreement that would
otherwise be due and payable by virtue of the lapse or waiver of restrictions
with respect to Restricted Stock or another form of Incentive Award, or the
satisfaction of any requirements or goals with respect to any Incentive Awards.

 

7.7                               Amendment and Termination

 

The Board shall have the
power and authority to terminate or amend the Plan at any time; provided,
however, the Board shall not, without the approval of the shareholders of the
Company within the time period required by applicable law:

 

(a)                                  except as
provided in Section 6.6,
increase the maximum number of Shares which may be issued under the Plan
pursuant to Section 1.4;

 

(b)                                 amend the
requirements as to the class of Employees eligible to purchase Common Stock
under the Plan;

 

(c)                                  extend the term
of the Plan; or,

 

(d)                                 if the Company
is a Publicly Held Corporation (i) increase the maximum limits on
Incentive Awards to Covered Employees as set for compliance with the
Performance-Based Exception or (ii) decrease the authority granted to the
Committee under the Plan in contravention of Rule 16b-3 under the Exchange
Act to the extent Section 16 of the Exchange Act is applicable to the
Company.

 

No termination, amendment,
or modification of the Plan shall adversely affect in any material way any
outstanding Incentive Award previously granted to a Grantee under the Plan,
without the written consent of such Grantee or other designated holder of such
Incentive Award.

 

In addition, to the extent
that the Committee determines that (a) the listing for qualification
requirements of any national securities exchange or quotation system on which
the Company’s Common Stock is then listed or quoted, if applicable, or (b) the
Code (or regulations promulgated thereunder), require shareholder approval in
order to maintain compliance with such listing requirements or to maintain any
favorable tax advantages or qualifications, then the Plan shall not be amended
in such respect without approval of the Company’s shareholders.

 

26

 

7.8                               Requirements of Law

 

(a)                                  Governmental Entities and Securities Exchanges.  The granting of Incentive Awards and the
issuance of Shares under the Plan shall be subject to all applicable laws,
rules, and regulations, and to such approvals by any governmental agencies or
national securities exchanges as may be required. Certificates evidencing
Shares delivered under the Plan (to the extent that such shares are so evidenced)
may be subject to such stop transfer orders and other restrictions as the
Committee may deem advisable under the rules and regulations of the
Securities and Exchange Commission, any securities exchange or transaction
reporting system upon which the Common Stock is then listed or to which it is
admitted for quotation, and any applicable federal or state securities law or
regulation. The Committee may cause a legend or legends to be placed upon such
certificates (if any) to make appropriate reference to such restrictions.

 

The
Company shall not be required to sell or issue any Shares under any Incentive
Award if the sale or issuance of such Shares would constitute a violation by
the Grantee or any other individual exercising the Incentive Award, or the Company,
of any provision of any law or regulation of any governmental authority,
including without limitation, any federal or state securities law or
regulation. If at any time the Company shall determine, in its discretion, that
the listing, registration or qualification of any Shares subject to an
Incentive Award upon any securities exchange or under any governmental
regulatory body is necessary or desirable as a condition of, or in connection
with, the issuance or purchase of Shares hereunder, no Shares may be issued or
sold to the Grantee or any other individual pursuant to an Incentive Award
unless such listing, registration, qualification, consent or approval shall
have been effected or obtained free of any conditions not acceptable to the
Company, and any delay caused thereby shall in no way affect the date of
termination of the Incentive Award. The Company shall not be obligated to take
any affirmative action in order to cause the exercise of an Incentive Award or
the issuance of Shares pursuant to the Plan to comply with any law or
regulation of any governmental authority. As to any jurisdiction that expressly
imposes the requirement that an Incentive Award shall not be exercisable until
the Shares covered thereby are registered or are exempt from registration, the
exercise of such Incentive Award (under circumstances in which the laws of such
jurisdiction apply) shall be deemed conditioned upon the effectiveness of such
registration or the availability of such an exemption.

 

(b)                                  Securities Act Rule 701.  If no class of the Company’s securities is
registered under Section 12 of the Exchange Act, then unless otherwise
determined by the Committee, grants of Incentive Awards to “Rule 701
Grantees” (as defined below) and issuances of the underlying shares of Common
Stock, if any, on the exercise or conversion of such Incentive Awards are
intended to comply with all applicable conditions of Securities Act Rule 701
(“Rule 701”), including, without limitation, the restrictions as to the
amount of securities that may be offered and sold in reliance on Rule 701,
so as to qualify for an exemption from the registration requirements of the
Securities Act. Any ambiguities or inconsistencies in the construction of an
Incentive Award or the Plan shall be interpreted to give effect to such
intention. In accordance with Rule 701, each Grantee shall receive a copy
of the Plan on or before the date an Incentive Award is granted to him, as well
as the additional disclosure required by Rule 701 (e) if the
aggregate sales price or amount of securities sold during any consecutive
12-month period exceeds $5,000,000 as determined under Rule 701(e). If Rule 701
(or any successor provision) is amended to eliminate or otherwise modify any of
the requirements specified in Rule 701, then the provisions of this Section 7.8(b) shall be
interpreted and construed in accordance with Rule 701 as so amended. For
purposes of this Section 7.8(b),
as determined in accordance with Rule 701, “Rule 701 Grantees” shall
mean any Grantee other than a director of the Company, the Company’s chairman,
CEO, President, chief financial officer, controller and any vice president of
the Company, and any other key employee of the Company who generally has access
to financial 

 

27

 

and other business related
information and possesses sufficient sophistication to understand and evaluate
such information.

 

7.9                               Rule 16b-3 Securities Law Compliance for Insiders

 

If the Company is a Publicly
Held Corporation, transactions under the Plan with respect to Insiders are
intended to comply with all applicable conditions of Rule 16b-3 under the
Exchange Act to the extent Section 16 of the Exchange Act is applicable to
the Company. Any ambiguities or inconsistencies in the construction of an
Incentive Award or the Plan shall be interpreted to give effect to such
intention, and to the extent any provision of the Plan or action by the
Committee fails to so comply, it shall be deemed null and void to the extent
permitted by law and deemed advisable by the Committee in its discretion.

 

7.10                        Compliance with Code Section 162(m) for Publicly Held
Corporation

 

If the Company is a Publicly
Held Corporation, unless otherwise determined by the Committee with respect to
any particular Incentive Award, it is intended that the Plan shall comply fully
with the applicable requirements so that any Incentive Awards subject to Section 162(m) that
are granted to Covered Employees shall qualify for the Performance-Based
Exception, except for grants of Nonstatutory Stock Options with an Option Price
set at less than the Fair Market Value of a Share on the date of grant. If any
provision of the Plan or an Incentive Agreement would disqualify the Plan or
would not otherwise permit the Plan or Incentive Award to comply with the
Performance-Based Exception as so intended, such provision shall be construed
or deemed to be amended to conform to the requirements of the Performance-Based
Exception to the extent permitted by applicable law and deemed advisable by the
Committee; provided, however, no such construction or amendment shall have an
adverse effect on the prior grant of an Incentive Award or the economic value
to a Grantee of any outstanding Incentive Award.

 

7.11                        Compliance with Code Section 409A

 

It is intended that
Incentive Awards granted under the Plan shall be exempt from, or in compliance
with, Code Section 409A, unless otherwise determined by the Committee at
the time of grant. In that respect, the Board reserves the right to amend the
Plan, and the Committee reserves the right to amend any outstanding Incentive
Agreement, to the extent deemed necessary either to exempt such Incentive Award
from Section 409A or to comply with the requirements of Section 409A,
as applicable. Further, Grantees who are “Specified Employees” (as defined
under Section 409A), shall be required to delay payment of an Incentive
Award for six (6) months after separation from service, but only to the
extent such Incentive Award is governed by Section 409A and such delay is
required thereunder.

 

7.12                        Notices

 

(a)                                  Notice From Insiders to Secretary of Change in
Beneficial Ownership.  To
the extent Section 16 of the Exchange Act is applicable to the Company, at
least two business days prior to the date of a change in beneficial ownership
of the Common Stock issued or delivered pursuant to this Plan, an Insider
should report to the Secretary of the Company any such change to the beneficial
ownership of Common Stock that is required to be reported with respect to such
Insider under Rule 16(a)-3 promulgated pursuant to the Exchange Act.

 

(b)                                  Notice to Insiders and Securities and Exchange
Commission.  To the
extent applicable, the Company shall provide notice to any Insider, as well as
to the Securities and Exchange Commission, of any “blackout period,” as defined
in Section 306(a)(4) of the Sarbanes-Oxley Act of 2002, in any case
in which Insider is subject to the requirements of Section 304 of said Act
in connection with such “blackout period.”

 

28

 

7.13                        Pre-Clearance Agreement with Brokers

 

Notwithstanding anything in
the Plan to the contrary, no Shares issued pursuant to the Plan will be
delivered to a broker or dealer that receives such Shares for the account of an
Insider unless and until the broker or dealer enters into a written agreement
with the Company whereby such broker or dealer agrees to report immediately to
the Secretary of the Company (or other designated person) a change in the
beneficial ownership of such Shares.

 

7.14                        Successors to Company

 

All obligations of the
Company under the Plan with respect to Incentive Awards granted hereunder shall
be binding on any successor to the Company, whether the existence of such
successor is the result of a direct or indirect purchase, merger,
consolidation, or otherwise, of all or substantially all of the business and/or
assets of the Company.

 

7.15                        Miscellaneous Provisions

 

(a)                                  No Employee,
Consultant, Outside Director, or other person shall have any claim or right to
be granted an Incentive Award under the Plan. Neither the Plan, nor any action
taken hereunder, shall be construed as giving any Employee, Consultant, or
Outside Director any right to be retained in the Employment or other service of
the Company or any Parent or Subsidiary.

 

(b)                                 The expenses of
the Plan shall be borne by the Company.

 

(c)                                  By accepting
any Incentive Award, each Grantee and each person claiming by or through him
shall be deemed to have indicated his acceptance of the Plan.

 

(d)                                 The proceeds
received from the sale of Common Stock pursuant to the Plan shall be used for
general corporate purposes of the Company.

 

7.16                        Severability

 

In the event that any
provision of this Plan shall be held illegal, invalid or unenforceable for any
reason, such provision shall be fully severable, but shall not affect the
remaining provisions of the Plan, and the Plan shall be construed and enforced
as if the illegal, invalid, or unenforceable provision was not included herein.

 

7.17                        Gender, Tense and Headings

 

Whenever the context so requires,
words of the masculine gender used herein shall include the feminine and
neuter, and words used in the singular shall include the plural. Section headings
as used herein are inserted solely for convenience and reference and constitute
no part of the interpretation or construction of the Plan.

 

7.18                        Governing Law

 

The Plan shall be
interpreted, construed and constructed in accordance with the laws of the state
of Texas without regard to its conflicts of law provisions, except as may be
superseded by applicable laws of the United States.

 

[Signature page follows]

 

29

 

IN WITNESS WHEREOF, the
Company has caused this Plan to be duly executed in its name and on its behalf
by its duly authorized officer, effective as of the Effective Date.

 

	
   

  	
  GLOBAL GEOPHYSICAL SERVICES, INC.

  
	
   

  	
   

  
	
   

  	
  By: Richard A. Degner 

  
	
   

  	
  President and Chief Executive Officer

  

 

30Exhibit 4.7

 

AMAG PHARMACEUTICALS, INC. 

Issuer

AND

[TRUSTEE],

Trustee

 

 

INDENTURE

Dated as of [·], 201[·]

 

 

Senior Debt Securities

 

 

TABLE OF CONTENTS

 

	
   

  	
   

  	
  PAGE

  
	
   

  	
   

  	
   

  
	
  ARTICLE
  1  DEFINITIONS

  	
  1

  
	
   

  	
   

  	
   

  
	
  Section 1.01

  	
  Definitions of Terms

  	
  1

  
	
   

  	
   

  	
   

  
	
  ARTICLE
  2  ISSUE, DESCRIPTION, TERMS, EXECUTION, REGISTRATION AND
  EXCHANGE OF SECURITIES

  	
  5

  
	
   

  	
   

  	
   

  
	
  Section 2.01

  	
  Designation and Terms
  of Securities

  	
  5

  
	
   

  	
   

  	
   

  
	
  Section 2.02

  	
  Form of Securities
  and Trustee’s Certificate

  	
  8

  
	
   

  	
   

  	
   

  
	
  Section 2.03

  	
  Denominations:
  Provisions for Payment

  	
  8

  
	
   

  	
   

  	
   

  
	
  Section 2.04

  	
  Execution and
  Authentications

  	
  10

  
	
   

  	
   

  	
   

  
	
  Section 2.05

  	
  Registration of
  Transfer and Exchange

  	
  10

  
	
   

  	
   

  	
   

  
	
  Section 2.06

  	
  Temporary Securities

  	
  12

  
	
   

  	
   

  	
   

  
	
  Section 2.07

  	
  Mutilated, Destroyed,
  Lost or Stolen Securities

  	
  12

  
	
   

  	
   

  	
   

  
	
  Section 2.08

  	
  Cancellation

  	
  13

  
	
   

  	
   

  	
   

  
	
  Section 2.09

  	
  Benefits of Indenture

  	
  13

  
	
   

  	
   

  	
   

  
	
  Section 2.10

  	
  Authenticating Agent

  	
  13

  
	
   

  	
   

  	
   

  
	
  Section 2.11

  	
  Global Securities

  	
  14

  
	
   

  	
   

  	
   

  
	
  ARTICLE
  3  REDEMPTION OF SECURITIES AND SINKING FUND PROVISIONS

  	
  15

  
	
   

  	
   

  	
   

  
	
  Section 3.01

  	
  Redemption

  	
  15

  
	
   

  	
   

  	
   

  
	
  Section 3.02

  	
  Notice of Redemption

  	
  15

  
	
   

  	
   

  	
   

  
	
  Section 3.03

  	
  Payment Upon Redemption

  	
  16

  
	
   

  	
   

  	
   

  
	
  Section 3.04

  	
  Sinking Fund

  	
  17

  
	
   

  	
   

  	
   

  
	
  Section 3.05

  	
  Satisfaction of Sinking
  Fund Payments with Securities

  	
  17

  
	
   

  	
   

  	
   

  
	
  Section 3.06

  	
  Redemption of
  Securities for Sinking Fund

  	
  17

  
	
   

  	
   

  	
   

  
	
  ARTICLE
  4  COVENANTS

  	
  18

  
	
   

  	
   

  	
   

  
	
  Section 4.01

  	
  Payment of Principal,
  Premium and Interest

  	
  18

  
	
   

  	
   

  	
   

  
	
  Section 4.02

  	
  Maintenance of Office
  or Agency

  	
  18

  
	
   

  	
   

  	
   

  
	
  Section 4.03

  	
  Paying Agents

  	
  18

  
	
   

  	
   

  	
   

  
	
  Section 4.04

  	
  Appointment to Fill
  Vacancy in Office of Trustee

  	
  19

  
	
   

  	
   

  	
   

  
	
  Section 4.05

  	
  Compliance with
  Consolidation Provisions

  	
  20

  
	
   

  	
   

  	
   

  
	
  ARTICLE 5  SECURITYHOLDERS’
  LISTS AND REPORTS BY THE COMPANY AND THE TRUSTEE

  	
  20

  

 

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  PAGE

  
	
   

  	
   

  	
   

  
	
  Section 5.01

  	
  Company to Furnish
  Trustee Names and Addresses of Securityholders

  	
  20

  
	
   

  	
   

  	
   

  
	
  Section 5.02

  	
  Preservation Of
  Information; Communications With Securityholders

  	
  20

  
	
   

  	
   

  	
   

  
	
  Section 5.03

  	
  Reports by the Company

  	
  20

  
	
   

  	
   

  	
   

  
	
  Section 5.04

  	
  Reports by the Trustee

  	
  21

  
	
   

  	
   

  	
   

  
	
  ARTICLE
  6  REMEDIES OF THE TRUSTEE AND SECURITYHOLDERS ON EVENT OF DEFAULT

  	
  21

  
	
   

  	
   

  	
   

  
	
  Section 6.01

  	
  Events of Default

  	
  21

  
	
   

  	
   

  	
   

  
	
  Section 6.02

  	
  Collection of
  Indebtedness and Suits for Enforcement by Trustee

  	
  23

  
	
   

  	
   

  	
   

  
	
  Section 6.03

  	
  Application of Moneys
  Collected

  	
  25

  
	
   

  	
   

  	
   

  
	
  Section 6.04

  	
  Limitation on Suits

  	
  25

  
	
   

  	
   

  	
   

  
	
  Section 6.05

  	
  Rights and Remedies
  Cumulative; Delay or Omission Not Waiver

  	
  26

  
	
   

  	
   

  	
   

  
	
  Section 6.06

  	
  Control by
  Securityholders

  	
  26

  
	
   

  	
   

  	
   

  
	
  Section 6.07

  	
  Undertaking to Pay
  Costs

  	
  27

  
	
   

  	
   

  	
   

  
	
  ARTICLE
  7  CONCERNING THE TRUSTEE

  	
  27

  
	
   

  	
   

  	
   

  
	
  Section 7.01

  	
  Certain Duties and
  Responsibilities of Trustee

  	
  27

  
	
   

  	
   

  	
   

  
	
  Section 7.02

  	
  Certain Rights of
  Trustee

  	
  28

  
	
   

  	
   

  	
   

  
	
  Section 7.03

  	
  Trustee Not Responsible
  for Recitals or Issuance or Securities

  	
  30

  
	
   

  	
   

  	
   

  
	
  Section 7.04

  	
  May Hold
  Securities

  	
  30

  
	
   

  	
   

  	
   

  
	
  Section 7.05

  	
  Moneys Held in Trust

  	
  30

  
	
   

  	
   

  	
   

  
	
  Section 7.06

  	
  Compensation and
  Reimbursement

  	
  31

  
	
   

  	
   

  	
   

  
	
  Section 7.07

  	
  Reliance on Officer’s
  Certificate

  	
  31

  
	
   

  	
   

  	
   

  
	
  Section 7.08

  	
  Disqualification;
  Conflicting Interests

  	
  32

  
	
   

  	
   

  	
   

  
	
  Section 7.09

  	
  Corporate Trustee
  Required; Eligibility

  	
  32

  
	
   

  	
   

  	
   

  
	
  Section 7.10

  	
  Resignation and Removal;
  Appointment of Successor

  	
  32

  
	
   

  	
   

  	
   

  
	
  Section 7.11

  	
  Acceptance of
  Appointment By Successor

  	
  33

  
	
   

  	
   

  	
   

  
	
  Section 7.12

  	
  Merger, Conversion,
  Consolidation or Succession to Business

  	
  35

  
	
   

  	
   

  	
   

  
	
  Section 7.13

  	
  Preferential Collection
  of Claims Against the Company

  	
  35

  
	
   

  	
   

  	
   

  
	
  Section 7.14

  	
  Notice of Default

  	
  35

  

 

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  ARTICLE 8  CONCERNING THE SECURITYHOLDERS

  	
  35

  
	
   

  	
   

  	
   

  
	
  Section 8.01

  	
  Evidence of Action by
  Securityholders

  	
  35

  
	
   

  	
   

  	
   

  
	
  Section 8.02

  	
  Proof of Execution by
  Securityholders

  	
  36

  
	
   

  	
   

  	
   

  
	
  Section 8.03

  	
  Who May be Deemed
  Owners

  	
  36

  
	
   

  	
   

  	
   

  
	
  Section 8.04

  	
  Certain Securities
  Owned by Company Disregarded

  	
  37

  
	
   

  	
   

  	
   

  
	
  Section 8.05

  	
  Actions Binding on
  Future Securityholders

  	
  37

  
	
   

  	
   

  	
   

  
	
  ARTICLE
  9  SUPPLEMENTAL INDENTURES

  	
  37

  
	
   

  	
   

  	
   

  
	
  Section 9.01

  	
  Supplemental Indentures
  Without the Consent of Securityholders

  	
  37

  
	
   

  	
   

  	
   

  
	
  Section 9.02

  	
  Supplemental Indentures
  With Consent of Securityholders

  	
  39

  
	
   

  	
   

  	
   

  
	
  Section 9.03

  	
  Effect of Supplemental
  Indentures

  	
  39

  
	
   

  	
   

  	
   

  
	
  Section 9.04

  	
  Securities Affected by
  Supplemental Indentures

  	
  39

  
	
   

  	
   

  	
   

  
	
  Section 9.05

  	
  Execution of
  Supplemental Indentures

  	
  40

  
	
   

  	
   

  	
   

  
	
  ARTICLE
  10  SUCCESSOR ENTITY

  	
  40

  
	
   

  	
   

  	
   

  
	
  Section 10.01

  	
  Company
  May Consolidate, Etc.

  	
  40

  
	
   

  	
   

  	
   

  
	
  Section 10.02

  	
  Successor Entity
  Substituted

  	
  41

  
	
   

  	
   

  	
   

  
	
  ARTICLE
  11  SATISFACTION AND DISCHARGE

  	
  41

  
	
   

  	
   

  	
   

  
	
  Section 11.01

  	
  Satisfaction and
  Discharge of Indenture

  	
  41

  
	
   

  	
   

  	
   

  
	
  Section 11.02

  	
  Discharge of
  Obligations

  	
  42

  
	
   

  	
   

  	
   

  
	
  Section 11.03

  	
  Deposited Moneys to be
  Held in Trust

  	
  42

  
	
   

  	
   

  	
   

  
	
  Section 11.04

  	
  Payment of Moneys Held
  by Paying Agents

  	
  42

  
	
   

  	
   

  	
   

  
	
  Section 11.05

  	
  Repayment to Company

  	
  43

  
	
   

  	
   

  	
   

  
	
  ARTICLE
  12  IMMUNITY OF INCORPORATORS, STOCKHOLDERS, OFFICERS AND DIRECTORS

  	
  43

  
	
   

  	
   

  	
   

  
	
  Section 12.01

  	
  No Recourse

  	
  43

  
	
   

  	
   

  	
   

  
	
  ARTICLE
  13  MISCELLANEOUS PROVISIONS

  	
  44

  
	
   

  	
   

  	
   

  
	
  Section 13.01

  	
  Effect on Successors
  and Assigns

  	
  44

  
	
   

  	
   

  	
   

  
	
  Section 13.02

  	
  Actions by Successor

  	
  44

  
	
   

  	
   

  	
   

  
	
  Section 13.03

  	
  Surrender of Company
  Powers

  	
  44

  
	
   

  	
   

  	
   

  
	
  Section 13.04

  	
  Notices

  	
  44

  
	
   

  	
   

  	
   

  
	
  Section 13.05

  	
  Governing Law

  	
  44

  

 

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  PAGE

  
	
   

  	
   

  	
   

  
	
  Section 13.06

  	
  Treatment of Securities
  as Debt

  	
  44

  
	
   

  	
   

  	
   

  
	
  Section 13.07

  	
  Certificates and
  Opinions as to Conditions Precedent

  	
  45

  
	
   

  	
   

  	
   

  
	
  Section 13.08

  	
  Payments on Business
  Days

  	
  45

  
	
   

  	
   

  	
   

  
	
  Section 13.09

  	
  Conflict with Trust
  Indenture Act

  	
  45

  
	
   

  	
   

  	
   

  
	
  Section 13.10

  	
  Counterparts

  	
  45

  
	
   

  	
   

  	
   

  
	
  Section 13.11

  	
  Separability

  	
  45

  
	
   

  	
   

  	
   

  
	
  Section 13.12

  	
  Compliance Certificates

  	
  46

  

 

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

 

iv

 

INDENTURE

 

INDENTURE, dated as of [·], 201  , among AMAG PHARMACEUTICALS, INC.,  a Delaware corporation (the “Company”),
and[TRUSTEE], as trustee (the “Trustee”):

 

WHEREAS, for its lawful corporate purposes, the Company has
duly authorized the execution and delivery of this Indenture to provide for the
issuance of debt securities (hereinafter referred to as the “Securities”), in
an unlimited aggregate principal amount to be issued from time to time in one
or more series as in this Indenture provided, as registered Securities without
coupons, to be authenticated by the certificate of the Trustee;

 

WHEREAS, to provide the terms and conditions upon which the
Securities are to be authenticated, issued and delivered, the Company has duly
authorized the execution of this Indenture; and

 

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

 

NOW, THEREFORE, in consideration of the premises and the purchase of
the Securities by the holders thereof, it is mutually covenanted and agreed as
follows for the equal and ratable benefit of the holders of Securities:

 

ARTICLE 1

 

DEFINITIONS

 

Section 1.01         Definitions
of Terms.

 

The terms defined in this Section (except as in
this Indenture or any indenture supplemental hereto otherwise expressly
provided or unless the context otherwise requires) for all purposes of this
Indenture and of any indenture supplemental hereto shall have the respective
meanings specified in this Section and shall include the plural as well as
the singular.  All other terms used in
this Indenture that are defined in the Trust Indenture Act of 1939, as amended,
or that are by reference in such Act defined in the Securities Act of 1933, as
amended (except as herein or any indenture supplemental hereto otherwise
expressly provided or unless the context otherwise requires), shall have the
meanings assigned to such terms in said Trust Indenture Act and in said
Securities Act as in force at the date of the execution of this instrument.

 

“Authenticating
Agent” means an authenticating agent with respect to all or any
of the series of Securities appointed by the Trustee pursuant to Section 2.10.

 

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

 

“Board
of Directors” means the Board of Directors (or the functional
equivalent thereof) of the Company or any duly authorized committee of such
Board.

 

1

 

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

 

“Business
Day” means, with respect to any series of Securities, any day
other than a day on which federal or state banking institutions in the Borough
of Manhattan, the City of New York, or in the city of the Corporate Trust
Office of the Trustee, are authorized or obligated by law, executive order or
regulation to close.

 

“Certificate”
means a certificate signed by any Officer. 
The Certificate need not comply with the provisions of Section 13.07.

 

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

 

“Company”
means AMAG Pharmaceuticals, Inc.,
a corporation duly organized and existing under the laws of the State of
Delaware, and, subject to the provisions of Article Ten, shall also
include its successors and assigns.

 

“Corporate
Trust Office” means the office of the Trustee at which, at any
particular time, its corporate trust business shall be principally
administered, which office at the date hereof is located at                                                              .

 

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

 

“Defaulted
Interest” has the meaning set forth in Section 2.03.

 

“Depositary”
means, with respect to Securities of any series for which the Company shall
determine that such Securities will be issued as a Global Security, The
Depository Trust Company, another clearing agency, or any successor registered
as a clearing agency under the Exchange Act, or other applicable statute or
regulation, which, in each case, shall be designated by the Company pursuant to
either Section 2.01 or 2.11.

 

“Event
of Default” means, with respect to Securities of a particular
series, any event specified in Section 6.01, continued for the period of
time, if any, therein designated.

 

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

 

“Global
Security” means a Security issued to evidence all or a part of
any series of Securities which is executed by the Company and authenticated and
delivered by the Trustee to the Depositary or pursuant to the Depositary’s
instruction, all in accordance with the Indenture, which shall be registered in
the name of the Depositary or its nominee.

 

2

 

“Governmental
Obligations” means securities that are (a) direct
obligations of the United States of America for the payment of which its full
faith and credit is pledged or (b) obligations of a Person controlled or
supervised by and acting as an agency or instrumentality of the United States
of America, the payment of which is unconditionally guaranteed as a full faith
and credit obligation by the United States of America that, in either case, are
not callable or redeemable at the option of the issuer thereof at any time
prior to the stated maturity of the Securities, and shall also include a
depositary receipt issued by a bank or trust company as custodian with respect
to any such Governmental Obligation or a specific payment of principal of or interest
on any such Governmental Obligation held by such custodian for the account of
the holder of such depositary receipt; provided, however, that (except as
required by law) such custodian is not authorized to make any deduction from
the amount payable to the holder of such depositary receipt from any amount
received by the custodian in respect of the Governmental Obligation or the
specific payment of principal of or interest on the Governmental Obligation
evidenced by such depositary receipt.

 

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

 

“Indenture”
means this instrument as originally executed or as it may from time to time be
supplemented or amended by one or more indentures supplemental hereto entered
into in accordance with the terms hereof and shall include the terms of
particular series of Securities established as contemplated by Section 2.01.

 

“Interest
Payment Date”, when used with respect to any installment of
interest on a Security of a particular series, means the date specified in such
Security or in a Board Resolution or in an indenture supplemental hereto with
respect to such series as the fixed date on which an installment of interest
with respect to Securities of that series is due and payable.

 

“Officer”
means, with respect to the Company, the chairman of the Board of Directors, a
chief executive officer, a president, a chief financial officer, a chief
operating officer, any executive vice president, any senior vice president, any
vice president, the treasurer or any assistant treasurer, the controller or any
assistant controller or the secretary or any assistant secretary.

 

“Officer’s
Certificate” means a certificate signed by any Officer.  Each such certificate shall include the
statements provided for in Section 13.07, if and to the extent required by
the provisions thereof.

 

“Opinion
of Counsel” means an opinion in writing subject to customary
exceptions of legal counsel, who may be an employee of or counsel for the
Company, that is delivered to the Trustee in accordance with the terms
hereof.  Each such opinion shall include
the statements provided for in Section 13.07, if and to the extent
required by the provisions thereof.

 

“Outstanding”,
when used with reference to Securities of any series, means, subject to the
provisions of Section 8.04, as of any particular time, all Securities of
that series theretofore authenticated and delivered by the Trustee under this Indenture,
except (a) Securities theretofore canceled by the Trustee or any paying
agent, or delivered to the Trustee or any paying agent for

 

3

 

cancellation or that have
previously been canceled; (b) Securities or portions thereof for the
payment or redemption of which moneys or Governmental Obligations in the
necessary amount shall have been deposited in trust with the Trustee or with
any paying agent (other than the Company) or shall have been set aside and
segregated in trust by the Company (if the Company shall act as its own paying
agent); provided, however, that if such Securities or portions of such
Securities are to be redeemed prior to the maturity thereof, notice of such
redemption shall have been given as provided in Article Three, or
provision satisfactory to the Trustee shall have been made for giving such
notice; and (c) Securities in lieu of or in substitution for which other
Securities shall have been authenticated and delivered pursuant to the terms of
Section 2.07.

 

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

 

“Predecessor
Security” of any particular Security means every previous
Security evidencing all or a portion of the same debt as that evidenced by such
particular Security; and, for the purposes of this definition, any Security
authenticated and delivered under Section 2.07 in lieu of a lost,
destroyed or stolen Security shall be deemed to evidence the same debt as the
lost, destroyed or stolen Security.

 

“Responsible Officer”
when used with respect to the Trustee means any officer of the Trustee assigned
by the Trustee to administer its corporate trust matters with respect to this
Indenture (which, for the avoidance of doubt, includes without limitation any
supplemental indenture hereto).

 

“Securities”
has the meaning stated in the first recital of this Indenture and more
particularly means any Securities authenticated and delivered under this
Indenture.

 

“Securityholder”,
“holder of Securities”, “registered holder”, or other similar
term, means the Person or Persons in whose name or names a particular Security
is registered on the Security Register kept for that purpose in accordance with
the terms of this Indenture.

 

“Security Register”
and “Security Registrar”
shall have the meanings as set forth in Section 2.05.

 

“Subsidiary”
means, with respect to any Person:

 

(1)           any corporation or company a majority
of whose capital stock with voting power, under ordinary circumstances, to
elect directors is, at the date of determination, directly or indirectly, owned
by such Person (a “subsidiary”),
by one or more subsidiaries of such Person or by such Person and one or more
subsidiaries of such Person;

 

(2)           a partnership in which such Person or
a subsidiary of such Person is, at the date of determination, a general partner
of such partnership; or

 

4

 

(3)           any partnership, limited liability
company or other Person in which such Person, a subsidiary of such Person or
such Person and one or more subsidiaries of such Person, directly or
indirectly, at the date of determination, have (x) at least a majority
ownership interest or (y) the power to elect or appoint or direct the
election or appointment of the managing partner or member of such Person or, if
applicable, a majority of the directors or other governing body of such Person.

 

“Trustee”
means
                                                  ,
and, subject to the provisions of Article Seven, shall also include its
successors and assigns, and, if at any time there is more than one Person
acting in such capacity hereunder, “Trustee” shall mean each such Person.  The term “Trustee” as used with respect to a
particular series of the Securities shall mean the trustee with respect to that
series.

 

“Trust
Indenture Act” means the Trust Indenture Act of 1939, as
amended.

 

ARTICLE 2

 

ISSUE, DESCRIPTION, TERMS, EXECUTION, REGISTRATION
AND EXCHANGE OF SECURITIES

 

Section 2.01         Designation
and Terms of Securities.

 

(a)           The aggregate principal amount of Securities that may be authenticated
and delivered under this Indenture is unlimited.  The Securities may be issued in one or more
series up to the aggregate principal amount of Securities of that series from
time to time authorized by or pursuant to a Board Resolution or pursuant to one
or more indentures supplemental hereto. 
Prior to the initial issuance of Securities of any series, there shall
be established in or pursuant to a Board Resolution, and set forth in an
Officer’s Certificate, or established in one or more indentures supplemental
hereto:

 

(1)           the title of the Securities of the series (which shall
distinguish the Securities of that series from all other Securities);

 

(2)           any limit upon the aggregate principal amount of the
Securities of that series which may be authenticated and delivered under this
Indenture (except for Securities authenticated and delivered upon registration
of transfer of, or in exchange for, or in lieu of, other Securities of that
series);

 

(3)           the date or dates on which the principal of the
Securities of the series is payable;

 

(4)           if the price
(expressed as a percentage of the aggregate principal amount thereof) at which
such Securities will be issued is a price other than the principal amount
thereof, the portion of the principal amount thereof payable upon declaration
of acceleration of the maturity thereof, or if applicable, the portion of the
principal amount of such Securities that is convertible into another security
or the method by which any such portion shall be determined;

 

5

 

(5)           the rate or rates at which the Securities of the
series shall bear interest or the manner of calculation of such rate or rates,
if any;

 

(6)           the date or dates from which such interest shall
accrue, the Interest Payment Dates on which such interest will be payable or
the manner of determination of such Interest Payment Dates, the place(s) of
payment, and the record date for the determination of holders to whom interest
is payable on any such Interest Payment Dates or the manner of determination of
such record dates;

 

(7)           the right, if any, to extend the interest payment
periods and the duration of such extension;

 

(8)           the period or periods within which, the price or
prices at which and the terms and conditions upon which Securities of the
series may be redeemed, converted or exchanged, in whole or in part;

 

(9)           the obligation, if any, of the Company to redeem or
purchase Securities of the series pursuant to any sinking fund, mandatory
redemption, or analogous provisions (including payments made in cash in
satisfaction of future sinking fund obligations) or at the option of a holder
thereof and the period or periods within which, the price or prices at which,
and the terms and conditions upon which, Securities of the series shall be
redeemed or purchased, in whole or in part, pursuant to such obligation;

 

(10)         the form of the Securities of the series including the
form of the Certificate of Authentication for such series;

 

(11)         if other than denominations of one thousand U.S.
dollars ($1,000) or any integral multiple thereof, the denominations in which
the Securities of the series shall be issuable;

 

(12)         any and all other terms (including terms, to the
extent applicable, relating to any auction or remarketing of the Securities of
that series and any security for the obligations of the Company with respect to
such Securities) with respect to such series (which terms shall not be
inconsistent with the terms of this Indenture, as amended by any supplemental
indenture) including any terms which may be required by or advisable under
United States laws or regulations or advisable in connection with the marketing
of Securities of that series;

 

(13)         whether the
Securities of the series shall be issued in whole or in part in the form of a
Global Security or Securities; the terms and conditions, if any, upon which
such Global Security or Securities may be exchanged in whole or in part for
other individual Securities; and the Depositary for such Global Security or
Securities;

 

(14)         whether the Securities will be convertible into or
exchangeable for shares of common stock, preferred stock or other securities of
the Company or any other Person and, if so, the terms and conditions upon which
such Securities will be so convertible or exchangeable, including the
conversion or exchange price, as applicable, or how it will be calculated and
may be adjusted, any mandatory or optional (at the Company’s option or the

 

6

 

holders’ option)
conversion or exchange features, and the applicable conversion or exchange
period;

 

(15)         if other than the full principal amount thereof, the
portion of the principal amount of Securities of the series which shall be
payable upon declaration of acceleration of the maturity thereof pursuant to Section 6.01;

 

(16)         any additional or alternative events of default;

 

(17)         additional or alternative covenants (which may
include, among other restrictions, restrictions on the Company’s ability or the
ability of the Company’s Subsidiaries to: 
incur additional indebtedness; issue additional securities; create
liens; pay dividends or make distributions in respect of the capital stock of
the Company or the Company’s Subsidiaries; redeem capital stock; place
restrictions on the Company’s Subsidiaries’ ability to pay dividends, make
distributions or transfer assets; make investments or other restricted
payments; sell or otherwise dispose of assets; enter into sale-leaseback
transactions; engage in transactions with stockholders or affiliates; issue or
sell stock of the Company’s Subsidiaries; or effect a consolidation or merger)
or financial covenants (which may include, among other financial covenants,
financial covenants that require the Company and its Subsidiaries to maintain
specified interest coverage, fixed charge, cash flow-based, asset-based or
other financial ratios) provided for with respect to the Securities of the
series;

 

(18)         the currency or currencies, including
composite currencies, in which payment of the principal of (and premium, if
any) and interest, if any, on such Securities shall be payable (if other than
the currency of the United States of America), which unless otherwise specified
shall be the currency of the United States of America as at the time of payment
is legal tender for payment of public or private debts;

 

(19)         if the principal of (and premium, if any)
or interest, if any, on such Securities is to be payable, at the election of
the Company or any Holder thereof, in a coin or currency other than that in
which such Securities are stated to be payable, then the period or periods
within which, and the terms and conditions upon which, such election may be
made;

 

(20)         whether interest will be payable in cash
or additional Securities at the Company’s or the Securityholders’ option and
the terms and conditions upon which the election may be made;

 

(21)         the terms and conditions, if any, upon which the
Company shall pay amounts in addition to the stated interest, premium, if any
and principal amounts of the Securities of the series to any Securityholder
that is not a “United States person” for federal tax purposes;

 

(22)         additional or alternative provisions, if any, related
to defeasance and discharge of the offered Securities;

 

(23)         the applicability of any guarantees;

 

7

 

(24)         any restrictions on transfer, sale or assignment of
the Securities of the series;  and

 

(25)         any other terms of the
series.

 

All Securities of any one series shall be
substantially identical except as may otherwise be provided in or pursuant to
any such Board Resolution or in any indentures supplemental hereto.

 

If any of the terms of the series are established by
action taken pursuant to a Board Resolution of the Company, a copy of an
appropriate record of such action shall be certified by the secretary or an
assistant secretary of the Company and delivered to the Trustee at or prior to
the delivery of the Officer’s Certificate of the Company setting forth the
terms of the series.

 

Securities of any particular series may be issued at
various times, with different dates on which the principal or any installment
of principal is payable, with different rates of interest, if any, or different
methods by which rates of interest may be determined, with different dates on
which such interest may be payable and with different redemption dates.

 

Section 2.02         Form of
Securities and Trustee’s Certificate.

 

The Securities of any series and the Trustee’s
certificate of authentication to be borne by such Securities shall be
substantially of the tenor and purport as set forth in one or more indentures
supplemental hereto or as provided in a Board Resolution, and set forth in an
Officer’s Certificate, and they may have such letters, numbers or other marks
of identification or designation and such legends or endorsements printed,
lithographed or engraved thereon as the Company may deem appropriate and as are
not inconsistent with the provisions of this Indenture, or as may be required
to comply with any law or with any rule or regulation made pursuant
thereto or with any rule or regulation of any securities exchange on which
Securities of that series may be listed, or to conform to usage.

 

Section 2.03         Denominations:
Provisions for Payment.

 

The Securities shall be issuable as registered
Securities and in the denominations of one thousand U.S. dollars ($1,000) or
any integral multiple thereof, subject to Section 2.01(a)(10).  The Securities of a particular series shall
bear interest payable on the dates and at the rate specified with respect to
that series.  Subject to Section 2.01(a)(16),
the principal of and the interest on the Securities of any series, as well as
any premium thereon in case of redemption thereof prior to maturity, shall be
payable in the coin or currency of the United States of America that at the
time is legal tender for public and private debt, at the office or agency of
the Company maintained for that purpose. 
Each Security shall be dated the date of its authentication.  Interest on the Securities shall be computed
on the basis of a 360-day year composed of twelve 30-day months.

 

The interest installment on any Security that is
payable, and is punctually paid or duly provided for, on any Interest Payment
Date for Securities of that series shall be paid to the Person in whose name
said Security (or one or more Predecessor Securities) is registered at the
close of business on the regular record date for such interest
installment.  In the event that any
Security of

 

8

 

a particular series or
portion thereof is called for redemption and the redemption date is subsequent
to a regular record date with respect to any Interest Payment Date and prior to
such Interest Payment Date, interest on such Security will be paid upon
presentation and surrender of such Security as provided in Section 3.03.

 

Any interest on any Security that is payable, but is
not punctually paid or duly provided for, on any Interest Payment Date for
Securities of the same series (herein called “Defaulted Interest”) shall
forthwith cease to be payable to the registered holder on the relevant regular
record date by virtue of having been such holder; and such Defaulted Interest
shall be paid by the Company, at its election, as provided in clause (1) or
clause (2) below:

 

(1)           The Company may make payment of any Defaulted Interest
on Securities to the Persons in whose names such Securities (or their
respective Predecessor Securities) are registered at the close of business on a
special record date for the payment of such Defaulted Interest, which shall be
fixed in the following manner: the Company shall notify the Trustee in writing
of the amount of Defaulted Interest proposed to be paid on each such Security
and the date of the proposed payment, and at the same time the Company shall
deposit with the Trustee an amount of money equal to the aggregate amount
proposed to be paid in respect of such Defaulted Interest or shall make
arrangements satisfactory to the Trustee for such deposit prior to the date of
the proposed payment, such money when deposited to be held in trust for the
benefit of the Persons entitled to such Defaulted Interest as in this clause
provided.  Thereupon the Trustee shall
fix a special record date for the payment of such Defaulted Interest which
shall not be more than 15 nor less than 10 days prior to the date of the
proposed payment and not less than 10 days after the receipt by the Trustee of
the notice of the proposed payment.  The
Trustee shall promptly notify the Company of such special record date and, in
the name and at the expense of the Company, shall cause notice of the proposed
payment of such Defaulted Interest and the special record date therefor to be
mailed, first class postage prepaid, to each Securityholder at his or her
address as it appears in the Security Register (as hereinafter defined), not
less than 10 days prior to such special record date.  Notice of the proposed payment of such
Defaulted Interest and the special record date therefor having been mailed as
aforesaid, such Defaulted Interest shall be paid to the Persons in whose names
such Securities (or their respective Predecessor Securities) are registered on
such special record date.

 

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

 

Unless otherwise set forth in a Board Resolution or
one or more indentures supplemental hereto establishing the terms of any series
of Securities pursuant to Section 2.01 hereof, the term “regular record
date” as used in this Section with respect to a series of Securities and
any Interest Payment Date for such series shall mean either the fifteenth day
of the month immediately preceding the month in which an Interest Payment Date
established for such series pursuant to Section 2.01 hereof shall occur,
if such Interest Payment Date is the first day of a month, or the first day of
the month in which an Interest Payment Date established for such series pursuant
to

 

9

 

Section 2.01 hereof
shall occur, if such Interest Payment Date is the fifteenth day of a month,
whether or not such date is a Business Day.

 

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

 

Section 2.04         Execution
and Authentications.

 

The Securities shall be signed on behalf of the
Company by one of its Officers. 
Signatures may be in the form of a manual or facsimile signature.

 

The Company may use the facsimile signature of any
Person who shall have been an Officer, notwithstanding the fact that at the
time the Securities shall be authenticated and delivered or disposed of such
Person shall have ceased to be such an officer of the Company.  The Securities may contain such notations,
legends or endorsements required by law, stock exchange rule or usage.  Each Security shall be dated the date of its
authentication by the Trustee.

 

A Security shall not be valid until authenticated
manually by an authorized signatory of the Trustee, or by an Authenticating
Agent.  Such signature shall be
conclusive evidence that the Security so authenticated has been duly
authenticated and delivered hereunder and that the holder is entitled to the
benefits of this Indenture.  At any time
and from time to time after the execution and delivery of this Indenture, the
Company may deliver Securities of any series executed by the Company to the
Trustee for authentication, together with a written order of the Company for
the authentication and delivery of such Securities, signed by an Officer, and
the Trustee in accordance with such written order shall authenticate and
deliver such Securities.

 

In authenticating such Securities and accepting the
additional responsibilities under this Indenture in relation to such
Securities, the Trustee shall be entitled to receive, if requested, and (subject
to Section 7.01) shall be fully protected in relying upon, an Opinion of
Counsel stating that the form and terms thereof have been established in
conformity with the provisions of this Indenture.

 

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

 

Section 2.05         Registration
of Transfer and Exchange.

 

(a)           Securities of any series may be exchanged upon presentation thereof at
the office or agency of the Company designated for such purpose, for other
Securities of such series of authorized denominations, and for a like aggregate
principal amount, upon payment of a sum sufficient to cover any tax or other
governmental charge in relation thereto, all as provided in this Section.  In respect of any Securities so surrendered
for exchange, the Company shall execute, the Trustee shall authenticate and
such office or agency shall deliver in exchange therefor the

 

10

 

Security or Securities of the same series that the
Securityholder making the exchange shall be entitled to receive, bearing
numbers not contemporaneously outstanding.

 

(b)           The Company shall keep, or cause to be kept, at its office or agency
designated for such purpose a register or registers (herein referred to as the “Security
Register”) in which, subject to such reasonable regulations as it may
prescribe, the Company shall register the Securities and the transfers of
Securities as in this Article provided and which at all reasonable times
shall be open for inspection by the Trustee. 
The registrar for the purpose of registering Securities and transfer of
Securities as herein provided shall be appointed as authorized by Board
Resolution (the “Security Registrar”).

 

Upon surrender for transfer of any Security at the
office or agency of the Company designated for such purpose, the Company shall
execute, the Trustee shall authenticate and such office or agency shall deliver
in the name of the transferee or transferees a new Security or Securities of
the same series as the Security presented for a like aggregate principal
amount.

 

All Securities presented or surrendered for exchange
or registration of transfer, as provided in this Section, shall be accompanied
(if so required by the Company or the Security Registrar) by a written
instrument or instruments of transfer, in form satisfactory to the Company or
the Security Registrar, duly executed by the registered holder or by such
holder’s duly authorized attorney in writing.

 

(c)           Except as provided pursuant to Section 2.01 pursuant to a Board
Resolution, and set forth in an Officer’s Certificate, or established in one or
more indentures supplemental to this Indenture, no service charge shall be made
for any exchange or registration of transfer of Securities, or issue of new
Securities in case of partial redemption of any series, but the Company may
require payment of a sum sufficient to cover any tax or other governmental
charge in relation thereto, other than exchanges pursuant to Section 2.06,
Section 3.03(b) and Section 9.04 not involving any transfer.

 

(d)           The Company shall not be required (i) to issue, exchange or
register the transfer of any Securities during a period beginning at the
opening of business 15 days before the day of the mailing of a notice of
redemption of less than all the Outstanding Securities of the same series and
ending at the close of business on the day of such mailing, nor (ii) to
register the transfer of or exchange any Securities of any series or portions
thereof called for redemption, other than the unredeemed portion of any such
Securities being redeemed in part.  The
provisions of this Section 2.05 are, with respect to any Global Security,
subject to Section 2.11 hereof.

 

The Trustee shall have no obligation or duty to
monitor, determine or inquire as to compliance with any restrictions on
transfer imposed under this Indenture or under applicable law with respect to
any transfer of any interest in any Security (including any transfers between
or among depositary participants or beneficial owners of interests in any
Global Security) other than to require delivery of such certificates and other
documentation or evidence as are expressly required by, and to do so if and
when expressly required by the terms of, this Indenture, and to examine the
same to determine substantial compliance as to form with the express
requirements hereof.

 

11

 

Section 2.06         Temporary
Securities.

 

Pending the preparation of definitive Securities of
any series, the Company may execute, and the Trustee shall authenticate and
deliver, temporary Securities (printed, lithographed or typewritten) of any
authorized denomination.  Such temporary
Securities shall be substantially in the form of the definitive Securities in
lieu of which they are issued, but with such omissions, insertions and
variations as may be appropriate for temporary Securities, all as may be
determined by the Company.  Every
temporary Security of any series shall be executed by the Company and be
authenticated by the Trustee upon the same conditions and in substantially the
same manner, and with like effect, as the definitive Securities of such
series.  Without unnecessary delay the
Company will execute and will furnish definitive Securities of such series and
thereupon any or all temporary Securities of such series may be surrendered in
exchange therefor (without charge to the holders), at the office or agency of
the Company designated for the purpose, and the Trustee shall authenticate and
such office or agency shall deliver in exchange for such temporary Securities
an equal aggregate principal amount of definitive Securities of such series,
unless the Company advises the Trustee to the effect that definitive Securities
need not be executed and furnished until further notice from the Company.  Until so exchanged, the temporary Securities
of such series shall be entitled to the same benefits under this Indenture as
definitive Securities of such series authenticated and delivered hereunder.

 

Section 2.07         Mutilated,
Destroyed, Lost or Stolen Securities.

 

In case any temporary or definitive Security shall
become mutilated or be destroyed, lost or stolen, the Company (subject to the
next succeeding sentence) shall execute, and upon the Company’s request the
Trustee (subject as aforesaid) shall authenticate and deliver, a new Security
of the same series, bearing a number not contemporaneously outstanding, in
exchange and substitution for the mutilated Security, or in lieu of and in
substitution for the Security so destroyed, lost or stolen.  In every case the applicant for a substituted
Security shall furnish to the Company and the Trustee such security or
indemnity as may be required by them to save each of them harmless, and, in
every case of destruction, loss or theft, the applicant shall also furnish to
the Company and the Trustee evidence to their satisfaction of the destruction,
loss or theft of the applicant’s Security and of the ownership thereof.  The Trustee may authenticate any such
substituted Security and deliver the same upon the written request or authorization
of any officer of the Company.  Upon the
issuance of any substituted Security, the Company may require the payment of a
sum sufficient to cover any tax or other governmental charge that may be
imposed in relation thereto and any other expenses (including the fees and
expenses of the Trustee) connected therewith.

 

In case any Security that has matured or is about to
mature shall become mutilated or be destroyed, lost or stolen, the Company may,
instead of issuing a substitute Security, pay or authorize the payment of the
same (without surrender thereof except in the case of a mutilated Security) if
the applicant for such payment shall furnish to the Company and the Trustee
such security or indemnity as they may require to save them harmless, and, in case
of destruction, loss or theft, evidence to the satisfaction of the Company and
the Trustee of the destruction, loss or theft of such Security and of the
ownership thereof.

 

12

 

Every replacement Security issued pursuant to the
provisions of this Section shall constitute an additional contractual
obligation of the Company whether or not the mutilated, destroyed, lost or
stolen Security shall be found at any time, or be enforceable by anyone, and
shall be entitled to all the benefits of this Indenture equally and
proportionately with any and all other Securities of the same series duly
issued hereunder.  All Securities shall
be held and owned upon the express condition that the foregoing provisions are
exclusive with respect to the replacement or payment of mutilated, destroyed,
lost or stolen Securities, and shall preclude (to the extent lawful) any and
all other rights or remedies, notwithstanding any law or statute existing or
hereafter enacted to the contrary with respect to the replacement or payment of
negotiable instruments or other securities without their surrender.

 

Section 2.08         Cancellation.

 

All Securities surrendered for the purpose of payment,
redemption, exchange or registration of transfer shall, if surrendered to the
Company or any paying agent, be delivered to the Trustee for cancellation, or,
if surrendered to the Trustee, shall be cancelled by it, and no Securities
shall be issued in lieu thereof except as expressly required or permitted by any
of the provisions of this Indenture.  On
request of the Company at the time of such surrender, the Trustee shall deliver
to the Company canceled Securities held by the Trustee.  In the absence of such request the Trustee
may dispose of canceled Securities in accordance with its standard procedures
and deliver a certificate of disposition to the Company.  If the Company shall otherwise acquire any of
the Securities, however, such acquisition shall not operate as a redemption or
satisfaction of the indebtedness represented by such Securities unless and
until the same are delivered to the Trustee for cancellation.

 

Section 2.09         Benefits
of Indenture.

 

Nothing in this Indenture or in the Securities,
express or implied, shall give or be construed to give to any Person, other
than the parties hereto and the holders of the Securities  any legal or equitable right, remedy or claim
under or in respect of this Indenture, or under any covenant, condition or
provision herein contained; all such covenants, conditions and provisions being
for the sole benefit of the parties hereto and of the holders of the
Securities.

 

Section 2.10         Authenticating
Agent.

 

So long as any of the Securities of any series remain
Outstanding there may be an Authenticating Agent for any or all such series of
Securities which the Trustee shall have the right to appoint.  Said Authenticating Agent shall be authorized
to act on behalf of the Trustee to authenticate Securities of such series
issued upon exchange, transfer or partial redemption thereof, and Securities so
authenticated shall be entitled to the benefits of this Indenture and shall be
valid and obligatory for all purposes as if authenticated by the Trustee
hereunder.  All references in this
Indenture to the authentication of Securities by the Trustee shall be deemed to
include authentication by an Authenticating Agent for such series.  Each Authenticating Agent shall be acceptable
to the Company and shall be a corporation that has a combined capital and
surplus, as most recently reported or determined by it, sufficient under the
laws of any jurisdiction under which it is organized or in which it is doing
business to conduct a trust business, and that is otherwise authorized under
such laws to conduct such business and is

 

13

 

subject to supervision or
examination by federal or state authorities. 
If at any time any Authenticating Agent shall cease to be eligible in
accordance with these provisions, it shall resign immediately.

 

Any Authenticating Agent may at any time resign by
giving written notice of resignation to the Trustee and to the Company.  The Trustee may at any time (and upon request
by the Company shall) terminate the agency of any Authenticating Agent by
giving written notice of termination to such Authenticating Agent and to the
Company.  Upon resignation, termination
or cessation of eligibility of any Authenticating Agent, the Trustee may
appoint an eligible successor Authenticating Agent acceptable to the
Company.  Any successor Authenticating
Agent, upon acceptance of its appointment hereunder, shall become vested with
all the rights, powers and duties of its predecessor hereunder as if originally
named as an Authenticating Agent pursuant hereto.

 

Section 2.11         Global
Securities.

 

(a)           If the Company shall establish pursuant to Section 2.01 that the
Securities of a particular series are to be issued as a Global Security, then
the Company shall execute and the Trustee shall, in accordance with Section 2.04,
authenticate and deliver, a Global Security that (i) shall represent, and
shall be denominated in an amount equal to the aggregate principal amount of,
all of the Outstanding Securities of such series, (ii) shall be registered
in the name of the Depositary or its nominee, (iii) shall be delivered by
the Trustee to the Depositary or pursuant to the Depositary’s instruction and (iv) shall
bear a legend substantially to the following effect: “Except as otherwise
provided in Section 2.11 of the Indenture, this Security may be transferred,
in whole but not in part, only to another nominee of the Depositary or to a
successor Depositary or to a nominee of such successor Depositary.”

 

(b)           Notwithstanding the provisions of Section 2.05, the Global
Security of a series may be transferred, in whole but not in part and in the
manner provided in Section 2.05, only to another nominee of the Depositary
for such series, or to a successor Depositary for such series selected or
approved by the Company or to a nominee of such successor Depositary.

 

(c)           If at any time the Depositary for a series of the Securities notifies
the Company that it is unwilling or unable to continue as Depositary for such
series or if at any time the Depositary for such series shall no longer be
registered or in good standing under the Exchange Act, or other applicable
statute or regulation, and a successor Depositary for such series is not
appointed by the Company within 90 days after the Company receives such notice
or becomes aware of such condition, as the case may be, or if an Event of
Default has occurred and is continuing and the Company has received a request
from the Depositary or from the Trustee, this Section 2.11 shall no longer
be applicable to the Securities of such series and the Company will execute,
and subject to Section 2.04, the Trustee will authenticate and deliver the
Securities of such series in definitive registered form without coupons, in
authorized denominations, and in an aggregate principal amount equal to the
principal amount of the Global Security of such series in exchange for such
Global Security.  In addition, the
Company may at any time determine that the Securities of any series shall no
longer be represented by a Global Security and that the provisions of this Section 2.11
shall no longer apply to the Securities of such series.  In such event the Company will execute and,
subject to Section 2.04, the Trustee, upon receipt of an

 

14

 

Officer’s Certificate evidencing such determination by
the Company, will authenticate and deliver the Securities of such series in
definitive registered form without coupons, in authorized denominations, and in
an aggregate principal amount equal to the principal amount of the Global
Security of such series in exchange for such Global Security.  Upon the exchange of the Global Security for
such Securities in definitive registered form without coupons, in authorized
denominations, the Global Security shall be canceled by the Trustee.  Such Securities in definitive registered form
issued in exchange for the Global Security pursuant to this Section 2.11(c) shall
be registered in such names and in such authorized denominations as the
Depositary, pursuant to instructions from its direct or indirect participants
or otherwise, shall instruct the Trustee. 
The Trustee shall deliver such Securities to the Depositary for delivery
to the Persons in whose names such Securities are so registered.

 

ARTICLE 3

 

REDEMPTION OF SECURITIES AND SINKING FUND
PROVISIONS

 

Section 3.01         Redemption.

 

The Company may redeem the Securities of any series
issued hereunder on and after the dates and in accordance with the terms
established for such series pursuant to Section 2.01 hereof.

 

Section 3.02         Notice
of Redemption.

 

(a)  In case the Company shall desire to
exercise such right to redeem all or, as the case may be, a portion of the
Securities of any series in accordance with any right the Company reserved for
itself to do so pursuant to Section 2.01 hereof, the Company shall, or
shall cause the Trustee to, give notice of such redemption to holders of the
Securities of such series to be redeemed by mailing, first class postage
prepaid, a notice of such redemption not less than 30 days and not more than 90
days before the date fixed for redemption of that series to such holders at
their last addresses as they shall appear upon the Security Register, unless a
shorter period is specified in the Securities to be redeemed.  Any notice that is mailed in the manner
herein provided shall be conclusively presumed to have been duly given, whether
or not the registered holder receives the notice.  In any case, failure duly to give such notice
to the holder of any Security of any series designated for redemption in whole
or in part, or any defect in the notice, shall not affect the validity of the
proceedings for the redemption of any other Securities of such series or any
other series.  In the case of any
redemption of Securities prior to the expiration of any restriction on such
redemption provided in the terms of such Securities or elsewhere in this
Indenture, the Company shall furnish the Trustee with an Officer’s Certificate
evidencing compliance with any such restriction.

 

Each such notice of redemption shall specify the date
fixed for redemption and the redemption price at which Securities of that
series are to be redeemed, and shall state that payment of the redemption price
of such Securities to be redeemed will be made at the office or agency of the
Company, upon presentation and surrender of such Securities, that interest
accrued to the date fixed for redemption will be paid as specified in said
notice, that from and after said date interest will cease to accrue and that
the redemption is from a sinking fund, if such is the

 

15

 

case.  If less than all the Securities of a series
are to be redeemed, the notice to the holders of Securities of that series to
be redeemed in part shall specify the particular Securities to be so redeemed.

 

In case any Security is to be redeemed in part only,
the notice that relates to such Security shall state the portion of the
principal amount thereof to be redeemed, and shall state that on and after the
redemption date, upon surrender of such Security, a new Security or Securities
of such series in principal amount equal to the unredeemed portion thereof will
be issued.

 

(b)           If less than all the Securities of a series are to be redeemed, the
Company shall give the Trustee at least 45 days’ notice (unless a shorter
notice shall be satisfactory to the Trustee) in advance of the date fixed for
redemption as to the aggregate principal amount of Securities of the series to
be redeemed, and thereupon the Trustee shall select, by lot or in such other
manner as it shall deem appropriate and fair in its discretion and that may
provide for the selection of a portion or portions (equal to one thousand U.S.
dollars ($1,000) or any integral multiple thereof) of the principal amount of
such Securities of a denomination larger than $1,000, the Securities to be
redeemed and shall thereafter promptly notify the Company in writing of the
numbers of the Securities to be redeemed, in whole or in part.  The Company may, if and whenever it shall so
elect, by delivery of instructions signed on its behalf by an Officer, instruct
the Trustee or any paying agent to call all or any part of the Securities of a
particular series for redemption and to give notice of redemption in the manner
set forth in this Section, such notice to be in the name of the Company or its own
name as the Trustee or such paying agent may deem advisable.  In any case in which notice of redemption is
to be given by the Trustee or any such paying agent, the Company shall deliver
or cause to be delivered to, or permit to remain with, the Trustee or such
paying agent, as the case may be, such Security Register, transfer books or
other records, or suitable copies or extracts therefrom, sufficient to enable
the Trustee or such paying agent to give any notice by mail that may be
required under the provisions of this Section.

 

Section 3.03         Payment
Upon Redemption.

 

(a)           If the giving of notice of redemption shall have been completed as
above provided, the Securities or portions of Securities of the series to be
redeemed specified in such notice shall become due and payable on the date and
at the place stated in such notice at the applicable redemption price, together
with interest accrued to the date fixed for redemption and interest on such
Securities or portions of Securities shall cease to accrue on and after the
date fixed for redemption, unless the Company shall default in the payment of
such redemption price and accrued interest with respect to any such Security or
portion thereof.  On presentation and
surrender of such Securities on or after the date fixed for redemption at the
place of payment specified in the notice, said Securities shall be paid and
redeemed at the applicable redemption price for such series, together with
interest accrued thereon to the date fixed for redemption (but if the date fixed
for redemption is an interest payment date, the interest installment payable on
such date shall be payable to the registered holder at the close of business on
the applicable record date pursuant to Section 2.03).

 

(b)           Upon presentation of any Security of such series that is to be redeemed
in part only, the Company shall execute and the Trustee shall authenticate and
the office or agency where the Security is presented shall deliver to the
holder thereof, at the expense of the

 

16

 

Company, a new Security of the same series of
authorized denominations in principal amount equal to the unredeemed portion of
the Security so presented.

 

Section 3.04         Sinking
Fund.

 

The provisions of Sections 3.04, 3.05 and 3.06 shall
be applicable to any sinking fund for the retirement of Securities of a series,
except as otherwise specified as contemplated by Section 2.01 for
Securities of such series.

 

The minimum amount of any sinking fund payment
provided for by the terms of Securities of any series is herein referred to as
a “mandatory sinking fund payment,” and any payment in excess of such minimum
amount provided for by the terms of Securities of any series is herein referred
to as an “optional sinking fund payment”. 
If provided for by the terms of Securities of any series, the cash
amount of any sinking fund payment may be subject to reduction as provided in Section 3.05.  Each sinking fund payment shall be applied to
the redemption of Securities of any series as provided for by the terms of
Securities of such series.

 

Section 3.05         Satisfaction
of Sinking Fund Payments with Securities.

 

The Company (i) may deliver Outstanding
Securities of a series and (ii) may apply as a credit Securities of a
series that have been redeemed either at the election of the Company pursuant
to the terms of such Securities or through the application of permitted
optional sinking fund payments pursuant to the terms of such Securities, in
each case in satisfaction of all or any part of any sinking fund payment with
respect to the Securities of such series required to be made pursuant to the
terms of such Securities as provided for by the terms of such series, provided
that such Securities have not been previously so credited.  Such Securities shall be received and
credited for such purpose by the Trustee at the redemption price specified in
such Securities for redemption through operation of the sinking fund and the
amount of such sinking fund payment shall be reduced accordingly.

 

Section 3.06         Redemption
of Securities for Sinking Fund.

 

Not less than 45 days prior to each sinking fund
payment date for any series of Securities (unless a shorter period shall be
satisfactory to the Trustee), the Company will deliver to the Trustee an
Officer’s Certificate specifying the amount of the next ensuing sinking fund
payment for that series pursuant to the terms of the series, the portion
thereof, if any, that is to be satisfied by delivering and crediting Securities
of that series pursuant to Section 3.05 and the basis for such credit and
will, together with such Officer’s Certificate, deliver to the Trustee any
Securities to be so delivered.  Not less
than 30 days before each such sinking fund payment date the Trustee shall
select the Securities to be redeemed upon such sinking fund payment date in the
manner specified in Section 3.02 and cause notice of the redemption
thereof to be given in the name of and at the expense of the Company in the
manner provided in Section 3.02. 
Such notice having been duly given, the redemption of such Securities
shall be made upon the terms and in the manner stated in Section 3.03.

 

17

 

ARTICLE 4

 

COVENANTS

 

Section 4.01         Payment
of Principal, Premium and Interest.

 

The Company will duly and
punctually pay or cause to be paid the principal of (and premium, if any) and
interest on the Securities of that series at the time and place and in the
manner provided herein and established with respect to such Securities.
Payments of principal on the Securities may be made at the time provided herein
and established with respect to such Securities by U.S. dollar check drawn on
and mailed to the address of the Securityholder entitled thereto as such
address shall appear in the Security Register, or U.S. dollar wire transfer to,
a U.S. dollar account if such Securityholder shall have furnished wire
instructions to the Trustee no later than 15 days prior to the relevant payment
date. Payments of interest on the Securities may be made at the time provided
herein and established with respect to such Securities by U.S. dollar check
mailed to the address of the Securityholder entitled thereto as such address
shall appear in the Security Register, or U.S. dollar wire transfer to, a U.S.
dollar account if such Securityholder shall have furnished wire instructions in
writing to the Security Registrar and the Trustee no later than 15 days prior
to the relevant payment date.

 

Section 4.02         Maintenance
of Office or Agency.

 

So long as any series of the Securities remain
Outstanding, the Company agrees to maintain an office or agency with respect to
each such series and at such other location or locations as may be designated
as provided in this Section 4.02, where (i) Securities of that series
may be presented for payment, (ii) Securities of that series may be
presented as herein above authorized for registration of transfer and exchange,
and (iii) notices and demands to or upon the Company in respect of the
Securities of that series and this Indenture may be given or served, such
designation to continue with respect to such office or agency until the Company
shall, by written notice signed by any officer authorized to sign an Officer’s
Certificate and delivered to the Trustee, designate some other office or agency
for such purposes or any of them.  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, notices and demands may be made or served at the Corporate Trust
Office of the Trustee, and the Company hereby appoints the Trustee as its agent
to receive all such presentations, notices and demands.  The Company initially appoints the Corporate
Trust Office of the Trustee as its paying agent with respect to the Securities.

 

Section 4.03         Paying
Agents.

 

(a)  If the Company shall appoint one or more
paying agents for all or any series of the Securities, other than the Trustee,
the Company will cause each such paying agent to execute and deliver to the
Trustee an instrument in which such agent shall agree with the Trustee, subject
to the provisions of this Section:

 

(1)           that it will hold all sums held by it as such agent for the payment of
the principal of (and premium, if any) or interest on the Securities of that
series (whether such

 

18

 

sums have been paid to it by the Company or by any
other obligor of such Securities) in trust for the benefit of the Persons
entitled thereto;

 

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

 

(3)           that it will, at any time during the continuance of any failure
referred to in the preceding paragraph (a)(2) above, upon the written
request of the Trustee, forthwith pay to the Trustee all sums so held in trust
by such paying agent; and

 

(4)           that it will perform all other duties of paying agent as set forth in
this Indenture.

 

(b)           If the Company shall act as its own paying agent with respect to any
series of the Securities, it will on or before each due date of the principal
of (and premium, if any) or interest on Securities of that series, set aside,
segregate and hold in trust for the benefit of the Persons entitled thereto a
sum sufficient to pay such principal (and premium, if any) or interest so
becoming due on Securities of that series until such sums shall be paid to such
Persons or otherwise disposed of as herein provided and will promptly notify
the Trustee of such action, or any failure (by it or any other obligor on such
Securities) to take such action. 
Whenever the Company shall have one or more paying agents for any series
of Securities, it will, prior to each due date of the principal of (and
premium, if any) or interest on any Securities of that series, deposit with the
paying agent a sum sufficient to pay the principal (and premium, if any) or
interest so becoming due, such sum to be held in trust for the benefit of the
Persons entitled to such principal, premium or interest, and (unless such
paying agent is the Trustee) the Company will promptly notify the Trustee of
this action or failure so to act.

 

(c)           Notwithstanding anything in this Section to the contrary, (i) the
agreement to hold sums in trust as provided in this Section is subject to
the provisions of Section 11.05, and (ii) the Company may at any
time, for the purpose of obtaining the satisfaction and discharge of this
Indenture or for any other purpose, pay, or direct any paying agent to pay, to
the Trustee all sums held in trust by the Company or such paying agent, such
sums to be held by the Trustee upon the same terms and conditions as those upon
which such sums were held by the Company or such paying agent; and, upon such
payment by the Company or any paying agent to the Trustee, the Company or such
paying agent shall be released from all further liability with respect to such
money.

 

Section 4.04         Appointment
to Fill Vacancy in Office of Trustee.

 

The Company, whenever necessary to avoid or fill a
vacancy in the office of Trustee, will appoint, in the manner provided in Section 7.10,
a Trustee, so that there shall at all times be a Trustee hereunder.

 

19

 

Section 4.05         Compliance
with Consolidation Provisions.

 

The Company will not, while any of the Securities
remain Outstanding, consolidate with or merge into any other Person, in either
case where the Company is not the survivor of such transaction, or sell or
convey all or substantially all of its property to any other Person unless the
provisions of Article Ten hereof are complied with.

 

ARTICLE 5

 

SECURITYHOLDERS’ LISTS AND REPORTS BY THE COMPANY
AND THE TRUSTEE

 

Section 5.01         Company
to Furnish Trustee Names and Addresses of Securityholders.

 

The Company will furnish or cause to be furnished to
the Trustee (a) within 15 days after each regular record date (as defined
in Section 2.03) a list, in such form as the Trustee may reasonably
require, of the names and addresses of the holders of each series of Securities
as of such regular record date, provided that the Company shall not be
obligated to furnish or cause to furnish such list at any time that the list
shall not differ in any respect from the most recent list furnished to the
Trustee by the Company and (b) at such other times as the Trustee may
request in writing within 30 days after the receipt by the Company of any such
request, a list of similar form and content as of a date not more than 15 days
prior to the time such list is furnished; provided, however, that, in either
case, no such list need be furnished for any series for which the Trustee shall
be the Security Registrar.

 

Section 5.02         Preservation
Of Information; Communications With Securityholders.

 

(a)           The Trustee shall preserve, in as current a form as is reasonably
practicable, all information as to the names and addresses of the holders of
Securities contained in the most recent list furnished to it as provided in Section 5.01
and as to the names and addresses of holders of Securities received by the
Trustee in its capacity as Security Registrar (if acting in such capacity).

 

(b)           The Trustee may destroy any list furnished to it as provided in Section 5.01
upon receipt of a new list so furnished.

 

(c)           Securityholders may communicate as provided in Section 312(b) of
the Trust Indenture Act with other Securityholders with respect to their rights
under this Indenture or under the Securities, and, in connection with any such
communications, the Trustee shall satisfy its obligations under Section 312(b) of
the Trust Indenture Act in accordance with the provisions of Section 312(b) of
the Trust Indenture Act.

 

Section 5.03         Reports
by the Company.

 

(a)           The Company covenants and agrees to provide (which delivery may be via
electronic mail) to the Trustee within 30 days, after the Company files the same
with the 

 

20

 

Commission, copies of the annual reports and of the
information, documents and other reports (or copies of such portions of any of
the foregoing as the Commission may from time to time by rules and
regulations prescribe) that the Company is required to file with the Commission
pursuant to Section 13 or Section 15(d) of the Exchange Act;
provided, however, the Company shall not be required to deliver to the Trustee
any materials for which the Company has sought and received confidential
treatment by the Commission; and provided further, that so long as such filings
by the Company are available on the Commission’s Electronic Data Gathering,
Analysis and Retrieval System (EDGAR), or Interactive Data Electronic
Applications (IDEA), or any successor system, such filings shall be deemed to
have been filed with the Trustee for purposes hereof without any further action
required by the Company; provided that an electronic link to such filing,
together with an electronic notice of such filing have been sent to the
Trustee.  For the avoidance of doubt, a
failure by the Company to file annual reports, information and other reports
with the SEC within the time period prescribed thereof by the Commission shall
not be deemed a breach of this Section 5.03.

 

(b)           Delivery of reports, information and documents to the Trustee under Section 5.03
is for informational purposes only and the information and the Trustee’s
receipt of the foregoing shall not constitute constructive notice of any
information contained therein, or determinable from information contained
therein including the Company’s compliance with any of their covenants
thereunder (as to which the Trustee is entitled to rely exclusively on an
Officer’s Certificate).

 

Section 5.04         Reports
by the Trustee.

 

(a)           If required by Section 313(a) of the Trust Indenture Act, the
Trustee, within sixty (60) days after each May 1, shall transmit by mail,
first class postage prepaid, to the Securityholders, as their names and
addresses appear upon the Security Register, a brief report dated as of such May 1,
which complies with Section 313(a) of the Trust Indenture Act.

 

(b)           The Trustee shall comply with Section 313(b) and 313(c) of
the Trust Indenture Act.

 

(c)           A copy of each such report shall, at the time of such transmission to
Securityholders, be filed by the Trustee with the Company, with each securities
exchange upon which any Securities are listed (if so listed) and also with the
Commission.  The Company agrees to notify
the Trustee when any Securities become listed on any securities exchange.

 

ARTICLE 6

 

REMEDIES OF THE TRUSTEE AND SECURITYHOLDERS ON
EVENT OF DEFAULT

 

Section 6.01         Events
of Default.

 

(a)           Whenever used herein with respect to Securities of a particular series,
“Event of Default” means any one or more of the following events that has
occurred and is continuing:

 

21

 

(1)           the Company defaults in the payment of any installment of interest upon
any of the Securities of that series, as and when the same shall become due and
payable, and such default continues for a period of 90 days; provided, however,
that a valid extension of an interest payment period by the Company in
accordance with the terms of any indenture supplemental hereto shall not
constitute a default in the payment of interest for this purpose;

 

(2)           the Company defaults in the payment of the principal of (or premium, if
any, on) any of the Securities of that series as and when the same shall become
due and payable whether at maturity, upon redemption, by declaration or
otherwise, or in any payment required by any sinking or analogous fund
established with respect to that series; provided, however, that a valid
extension of the maturity of such Securities in accordance with the terms of
any indenture supplemental hereto shall not constitute a default in the payment
of principal or premium, if any;

 

(3)           the Company fails to observe or perform any other of its covenants or
agreements with respect to that series contained in this Indenture or otherwise
established with respect to that series of Securities pursuant to Section 2.01
hereof (other than a covenant or agreement that has been expressly included in
this Indenture solely for the benefit of one or more series of Securities other
than such series) for a period of 90 days after the date on which written
notice of such failure, requiring the same to be remedied and stating that such
notice is a “Notice of Default” hereunder, shall have been given to the Company
by the Trustee, by registered or certified mail, or to the Company and the
Trustee by the holders of at least 25% in principal amount of the Securities of
that series at the time Outstanding;

 

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

 

(5)           a court of competent jurisdiction enters an order under any Bankruptcy
Law that (i) is for relief against the Company in an involuntary case, (ii) appoints
a Custodian of the Company for all or substantially all of its property or (iii) orders
the liquidation of the Company, and the order or decree remains unstayed and in
effect for 90 days.

 

(b)           In each and every such case (other than an Event of Default specified
in clause (4) or clause (5) above), unless the principal of all the
Securities of that series shall have already become due and payable, either the
Trustee or the holders of not less than 25% in aggregate principal amount of
the Securities of that series then Outstanding hereunder, by notice in writing
to the Company (and to the Trustee if given by such Securityholders), may
declare the principal of (and premium, if any, on) and accrued and unpaid
interest on all the Securities of that series to be due and payable
immediately, and upon any such declaration the same shall become and shall be
immediately due and payable.  If an Event
of Default specified in clause (4) or clause (5) above occurs, the
principal of and accrued and unpaid interest on all the Securities of that
series shall automatically be immediately due and payable without any
declaration or other act on the part of the Trustee or the holders of the
Securities.

 

22

 

(c)           At any time after the principal of (and premium, if any, on) and
accrued and unpaid interest on the Securities of that series shall have been so
declared due and payable, and before any judgment or decree for the payment of
the moneys due shall have been obtained or entered as hereinafter provided, the
holders of a majority in aggregate principal amount of the Securities of that
series then Outstanding hereunder, by written notice to the Company and the
Trustee, may rescind and annul such declaration and its consequences if: (i) the
Company has paid or deposited with the Trustee a sum sufficient to pay all
matured installments of interest upon all the Securities of that series and the
principal of (and premium, if any, on) any and all Securities of that series
that shall have become due otherwise than by acceleration (with interest upon
such principal and premium, if any, and, to the extent that such payment is
enforceable under applicable law, upon overdue installments of interest, at the
rate per annum expressed in the Securities of that series to the date of such
payment or deposit) and the amount payable to the Trustee under Section 7.06,
and (ii) any and all Events of Default under the Indenture with respect to
such series, other than the nonpayment of principal on (and premium, if any,
on) and accrued and unpaid interest on Securities of that series that shall not
have become due by their terms, shall have been remedied or waived as provided
in Section 6.06.

 

No such rescission and annulment shall extend to or
shall affect any subsequent default or impair any right consequent thereon.

 

(d)           In case the Trustee shall have proceeded to enforce any right with
respect to Securities of that series under this Indenture and such proceedings
shall have been discontinued or abandoned because of such rescission or
annulment or for any other reason or shall have been determined adversely to
the Trustee, then and in every such case, subject to any determination in such
proceedings, the Company and the Trustee shall be restored respectively to
their former positions and rights hereunder, and all rights, remedies and
powers of the Company and the Trustee shall continue as though no such
proceedings had been taken.

 

Section 6.02         Collection
of Indebtedness and Suits for Enforcement by Trustee.

 

(a)           The Company covenants that (i) in case it shall default in the
payment of any installment of interest on any of the Securities of a series, or
in any payment required by any sinking or analogous fund established with
respect to that series as and when the same shall have become due and payable,
and such default shall have continued for a period of 90 days, or (ii) in
case it shall default in the payment of the principal of (or premium, if any,
on) any of the Securities of a series when the same shall have become due and
payable, whether upon maturity of the Securities of a series or upon redemption
or upon declaration or otherwise then, upon demand of the Trustee, the Company
will pay to the Trustee, for the benefit of the holders of the Securities of
that series, the whole amount that then shall have been become due and payable
on all such Securities for principal (and premium, if any) or interest, or
both, as the case may be, with interest upon the overdue principal (and
premium, if any) and (to the extent that payment of such interest is enforceable
under applicable law) upon overdue installments of interest at the rate per
annum expressed in the Securities of that series; and, in addition thereto,
such further amount as shall be sufficient to cover the costs and expenses of
collection, and the amount payable to the Trustee under Section 7.06.

 

23

 

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

 

(c)           In case of any receivership, insolvency, liquidation, bankruptcy,
reorganization, readjustment, arrangement, composition or judicial proceedings
affecting the Company, or its creditors or property, the Trustee shall have
power to intervene in such proceedings and take any action therein that may be
permitted by the court and shall (except as may be otherwise provided by law)
be entitled to file such proofs of claim and other papers and documents as may
be necessary or advisable in order to have the claims of the Trustee and of the
holders of Securities of such series allowed for the entire amount due and
payable by the Company under the Indenture at the date of institution of such
proceedings and for any additional amount that may become due and payable by
the Company after such date, and to collect and receive any moneys or other
property payable or deliverable on any such claim, and to distribute the same
after the deduction of the amount payable to the Trustee under Section 7.06;
and any receiver, assignee or trustee in bankruptcy or reorganization is hereby
authorized by each of the holders of Securities of such series to make such
payments to the Trustee, and, in the event that the Trustee shall consent to
the making of such payments directly to such Securityholders, to pay to the
Trustee any amount due it under Section 7.06.

 

(d)           All rights of action and of asserting claims under this Indenture, or
under any of the terms established with respect to Securities of that series,
may be enforced by the Trustee without the possession of any of such
Securities, or the production thereof at any trial or other proceeding relative
thereto, and any such suit or proceeding instituted by the Trustee shall be
brought in its own name as trustee of an express trust, and any recovery of
judgment shall, after provision for payment to the Trustee of any amounts due
under Section 7.06, be for the ratable benefit of the holders of the
Securities of such series.

 

In case of an Event of Default hereunder, the Trustee
may in its discretion proceed to protect and enforce the rights vested in it by
this Indenture by such appropriate judicial proceedings as the Trustee shall
deem most effectual to protect and enforce any of such rights, either at law or
in equity or in bankruptcy or otherwise, whether for the specific enforcement
of any covenant or agreement contained in the Indenture or in aid of the
exercise of any power granted in this Indenture, or to enforce any other legal
or equitable right vested in the Trustee by this Indenture or by law.

 

Nothing contained herein shall be deemed to authorize
the Trustee to authorize or consent to or accept or adopt on behalf of any
Securityholder any plan of reorganization, arrangement, adjustment or
composition affecting the Securities of that series or the rights of any holder
thereof or to authorize the Trustee to vote in respect of the claim of any
Securityholder in any such proceeding.

 

24

 

Section 6.03         Application
of Moneys Collected.

 

Any moneys collected by the Trustee pursuant to this Article with
respect to a particular series of Securities shall be applied in the following
order, at the date or dates fixed by the Trustee and, in case of the
distribution of such moneys on account of principal (or premium, if any) or
interest, upon presentation of the Securities of that series, and notation
thereon of the payment, if only partially paid, and upon surrender thereof if
fully paid:

 

FIRST: To the
payment of reasonable costs and expenses of collection and of all amounts
payable to the Trustee under Section 7.06;

 

SECOND: To the payment of the amounts then due and
unpaid upon Securities of such series for principal (and premium, if any) and
interest, in respect of which or for the benefit of which such money has been
collected, ratably, without preference or priority of any kind, according to
the amounts due and payable on such Securities for principal (and premium, if
any) and interest, respectively; and

 

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

 

Section 6.04         Limitation
on Suits.

 

No holder of any Security of any series shall have any
right by virtue or by availing of any provision of this Indenture to institute
any suit, action or proceeding in equity or at law upon or under or with
respect to this Indenture or for the appointment of a receiver or trustee, or
for any other remedy hereunder, unless (i) such holder previously shall
have given to the Trustee written notice of an Event of Default and of the
continuance thereof with respect to the Securities of such series specifying
such Event of Default, as hereinbefore provided; (ii) the holders of not
less than 25% in aggregate principal amount of the Securities of such series
then Outstanding shall have made written request upon the Trustee to institute
such action, suit or proceeding in its own name as Trustee hereunder; (iii) such
holder or holders shall have offered to the Trustee such reasonable indemnity
as it may require against the costs, expenses and liabilities to be incurred
therein or thereby; (iv) the Trustee for 90 days after its receipt of such
notice, request and offer of indemnity, shall have failed to institute any such
action, suit or proceeding and (v) during such 90 day period, the holders
of a majority in principal amount of the Securities of that series do not give
the Trustee a direction inconsistent with the request.

 

Notwithstanding anything contained herein to the
contrary or any other provisions of this Indenture, the right of any holder of
any Security to receive payment of the principal of (and premium, if any) and
interest on such Security, as therein provided, on or after the respective due
dates expressed in such Security (or in the case of redemption, on the
redemption date), or to institute suit for the enforcement of any such payment
on or after such respective dates or redemption date, shall not be impaired or
affected without the consent of such holder and by accepting a Security
hereunder it is expressly understood, intended and covenanted by the taker and
holder of every Security of such series with every other such taker and holder
and the Trustee, that no one or more holders of Securities of such series shall
have any right in any manner whatsoever by virtue or by availing of any
provision of this Indenture to affect, disturb or

 

25

 

prejudice the rights of
the holders of any other of such Securities, or to obtain or seek to obtain
priority over or preference to any other such holder, or to enforce any right
under this Indenture, except in the manner herein provided and for the equal,
ratable and common benefit of all holders of Securities of such series.  For the protection and enforcement of the
provisions of this Section, each and every Securityholder and the Trustee shall
be entitled to such relief as can be given either at law or in equity.

 

Section 6.05         Rights
and Remedies Cumulative; Delay or Omission Not Waiver.

 

(a)           Except as otherwise provided in Section 2.07, all powers and
remedies given by this Article to the Trustee or to the Securityholders
shall, to the extent permitted by law, be deemed cumulative and not exclusive
of any other powers and remedies available to the Trustee or the holders of the
Securities, by judicial proceedings or otherwise, to enforce the performance or
observance of the covenants and agreements contained in this Indenture or
otherwise established with respect to such Securities.

 

(b)           No delay or omission of the Trustee or of any holder of any of the
Securities to exercise any right or power accruing upon any Event of Default
occurring and continuing as aforesaid shall impair any such right or power, or
shall be construed to be a waiver of any such default or an acquiescence
therein; and, subject to the provisions of Section 6.04, every power and
remedy given by this Article or by law to the Trustee or the
Securityholders may be exercised from time to time, and as often as shall be
deemed expedient, by the Trustee or by the Securityholders.

 

Section 6.06         Control
by Securityholders.

 

The holders of a majority in aggregate principal
amount of the Securities of any series at the time Outstanding, determined in
accordance with Section 8.04, shall have the right to direct the time,
method and place of conducting any proceeding for any remedy available to the
Trustee, or exercising any trust or power conferred on the Trustee with respect
to such series; provided, however, that such direction shall not be in conflict
with any rule of law or with this Indenture or subject the Trustee in its
sole discretion to personal liability. 
Subject to the provisions of Section 7.01, the Trustee shall have
the right to decline to follow any such direction if the Trustee in good faith
shall, by a Responsible Officer or officers of the Trustee, determine that the
proceeding so directed, subject to the Trustee’s duties under the Trust
Indenture Act, would involve the Trustee in personal liability or might be
unduly prejudicial to the Securityholders not involved in the proceeding.  The holders of a majority in aggregate
principal amount of the Securities of any series at the time Outstanding
affected thereby, determined in accordance with Section 8.04, may on
behalf of the holders of all of the Securities of such series waive any past
default in the performance of any of the covenants contained herein or
established pursuant to Section 2.01 with respect to such series and its
consequences, except a default in the payment of the principal of, or premium,
if any, or interest on, any of the Securities of that series as and when the
same shall become due by the terms of such Securities otherwise than by
acceleration (unless such default has been cured and a sum sufficient to pay
all matured installments of interest and principal and any premium has been
deposited with the Trustee (in accordance with Section 6.01(c)).  Upon any such waiver, the default covered
thereby shall be deemed to be cured for all purposes of this Indenture and the
Company, the Trustee and the holders of the Securities

 

26

 

of such series shall be
restored to their former positions and rights hereunder, respectively; but no
such waiver shall extend to any subsequent or other default or impair any right
consequent thereon.

 

Section 6.07         Undertaking
to Pay Costs.

 

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

 

ARTICLE 7

 

CONCERNING THE TRUSTEE

 

Section 7.01         Certain
Duties and Responsibilities of Trustee.

 

(a)           The Trustee, prior to the occurrence of an Event of Default with
respect to the Securities of a series and after the curing of all Events of
Default with respect to the Securities of that series that may have occurred,
shall undertake to perform with respect to the Securities of such series such
duties and only such duties as are specifically set forth in this Indenture,
and no implied covenants shall be read into this Indenture against the
Trustee.  In case an Event of Default
with respect to the Securities of a series has occurred (that has not been
cured or waived), the Trustee shall exercise with respect to Securities of that
series such of the rights and powers vested in it by this Indenture, and use
the same degree of care and skill in their exercise, as a prudent man would
exercise or use under the circumstances in the conduct of his own affairs.

 

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

 

(i)            prior to the occurrence of an Event of Default with
respect to the Securities of a series and after the curing or waiving of all
such Events of Default with respect to that series that may have occurred:

 

(A)          the
duties and obligations of the Trustee shall with respect to the Securities of
such series be determined solely by the express provisions of this Indenture,
and the

 

27

 

Trustee shall not be liable with respect to the
Securities of such series except for the performance of such duties and
obligations as are specifically set forth in this Indenture, and no implied
covenants or obligations shall be read into this Indenture against the Trustee;
and

 

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

 

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

 

(iii)         the Trustee shall not be liable with respect to any
action taken or omitted to be taken by it in good faith in accordance with the
direction of the holders of not less than a majority in principal amount of the
Securities of any series at the time Outstanding relating to the time, method
and place of conducting any proceeding for any remedy available to the Trustee,
or exercising any trust or power conferred upon the Trustee under this
Indenture with respect to the Securities of that series; and

 

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

 

Section 7.02         Certain
Rights of Trustee.

 

Except as otherwise
provided in Section 7.01:

 

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

 

(b)           Any request, direction, order or demand of the Company mentioned herein
shall be sufficiently evidenced by a Board Resolution or an instrument signed
in the name of the Company by any authorized officer of the Company (unless
other evidence in respect thereof is specifically prescribed herein);

 

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

 

28

 

(d)           The Trustee shall be under no obligation to exercise any of the rights
or powers vested in it by this Indenture at the request, order or direction of
any of the Securityholders pursuant to the provisions of this Indenture, unless
such Securityholders shall have offered to the Trustee reasonable security or
indemnity against the costs, expenses and liabilities that may be incurred
therein or thereby; nothing contained herein shall, however, relieve the
Trustee of the obligation, upon the occurrence of an Event of Default with
respect to a series of the Securities (that has not been cured or waived), to
exercise with respect to Securities of that series such of the rights and
powers vested in it by this Indenture, and to use the same degree of care and
skill in their exercise, as a prudent man would exercise or use under the
circumstances in the conduct of his own affairs;

 

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

 

(f)            The Trustee shall not be bound to make any investigation into the facts
or matters stated in any resolution, certificate, statement, instrument,
opinion, report, notice, request, consent, order, approval, bond, security, or
other papers or documents, unless requested in writing so to do by the holders
of not less than a majority in principal amount of the Outstanding Securities
of the particular series affected thereby (determined as provided in Section 8.04);
provided, however, that if the payment within a reasonable time to the Trustee
of the costs, expenses or liabilities likely to be incurred by it in the making
of such investigation is, in the opinion of the Trustee, not reasonably assured
to the Trustee by the security afforded to it by the terms of this Indenture,
the Trustee may require reasonable indemnity against such costs, expenses or
liabilities as a condition to so proceeding. 
The reasonable expense of every such examination shall be paid by the
Company or, if paid by the Trustee, shall be repaid by the Company upon demand;

 

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

 

(h)           In no event shall the Trustee be responsible or liable for any failure
or delay in the performance of its obligations hereunder arising out of or
caused by, directly or indirectly, forces beyond its control, including,
without limitation, strikes, work stoppages, accidents, acts of war or
terrorism, civil or military disturbances, nuclear or natural catastrophes or
acts of God, and interruptions, loss or malfunctions of utilities,
communications or computer (software and hardware) services; it being
understood that the Trustee shall use reasonable efforts which are consistent
with accepted practices in the banking industry to resume performance as soon
as practicable under the circumstances;

 

(i)            In no event shall the Trustee be responsible or liable for special,
indirect, or consequential loss or damage of any kind whatsoever (including,
but not limited to, loss of profit) irrespective of whether the Trustee has
been advised of the likelihood of such loss or damage and regardless of the
form of action; and

 

29

 

(j)            The Trustee agrees to accept and act upon instructions or directions
pursuant to this Indenture sent by unsecured e-mail, facsimile transmission or
other similar unsecured electronic methods; provided, however, that (a) the
party providing such written instructions, subsequent to such transmission of
written instructions, shall provide the originally executed instructions or
directions to the Trustee in a timely manner, and (b) such originally
executed instructions or directions shall be signed by an authorized
representative of the party providing such instructions or directions.  If the party elects to give the Trustee
e-mail or facsimile instructions (or instructions by a similar electronic
method) and the Trustee in its discretion elects to act upon such instructions,
the Trustee’s understanding of such instructions shall be deemed
controlling.  The Trustee shall not be
liable for any losses, costs or expenses arising directly or indirectly from
the Trustee’s reliance upon and compliance with such instructions
notwithstanding such instructions conflict or are inconsistent with a
subsequent written instruction.  The
party providing electronic instructions agrees to assume all risks arising out
of the use of such electronic methods to submit instructions and directions to
the Trustee, including without limitation the risk of the Trustee acting on
unauthorized instructions, and the risk or interception and misuse by third
parties.

 

In addition, the Trustee shall not be deemed to have
knowledge of any Default or Event of Default until the Trustee shall have
received written notification in the manner set forth in this Indenture or a
Responsible Officer of the Trustee shall have obtained actual knowledge.

 

Section 7.03         Trustee
Not Responsible for Recitals or Issuance or Securities.

 

(a)           The recitals contained herein and in the Securities shall be taken as
the statements of the Company, and the Trustee assumes no responsibility for
the correctness of the same.

 

(b)           The Trustee makes no representations as to the validity or sufficiency
of this Indenture or of the Securities.

 

(c)           The Trustee shall not be accountable for the use or application by the
Company of any of the Securities or of the proceeds of such Securities, or for
the use or application of any moneys paid over by the Trustee in accordance
with any provision of this Indenture or established pursuant to Section 2.01,
or for the use or application of any moneys received by any paying agent other
than the Trustee.

 

Section 7.04         May Hold
Securities.

 

The Trustee or any paying agent or Security Registrar,
in its individual or any other capacity, may become the owner or pledgee of
Securities with the same rights it would have if it were not Trustee, paying
agent or Security Registrar.

 

Section 7.05         Moneys
Held in Trust.

 

Subject to the provisions of Section 11.05, all
moneys received by the Trustee shall, until used or applied as herein provided,
be held in trust for the purposes for which they were received, but need not be
segregated from other funds except to the extent required by law.  The Trustee

 

30

 

shall be under no
liability for interest on any moneys received by it hereunder except such as it
may agree with the Company to pay thereon.

 

Section 7.06         Compensation
and Reimbursement.

 

(a)           The Company covenants and agrees to pay to the Trustee, and the Trustee
shall be entitled to, such reasonable compensation (which shall not be limited
by any provision of law in regard to the compensation of a trustee of an
express trust) as the Company and the Trustee may from time to time agree in
writing, for all services rendered by it in the execution of the trusts hereby created
and in the exercise and performance of any of the powers and duties hereunder
of the Trustee, and, except as otherwise expressly provided herein, the Company
will pay or reimburse the Trustee upon its request for all reasonable expenses,
disbursements and advances incurred or made by the Trustee in accordance with
any of the provisions of this Indenture (including the reasonable compensation
and the expenses and disbursements of its counsel and of all Persons not
regularly in its employ), except any such expense, disbursement or advance as
may arise from its negligence or bad faith and except as the Company and
Trustee may from time to time agree in writing. 
The Company also covenants to indemnify the Trustee (and its officers,
agents, directors and employees) for, and to hold it harmless against, any
loss, liability or expense incurred without negligence or bad faith on the part
of the Trustee and arising out of or in connection with the acceptance or
administration of this trust, including the reasonable costs and expenses of
defending itself against any claim of liability in the premises.

 

(b)           The obligations of the Company under this Section to compensate
and indemnify the Trustee and to pay or reimburse the Trustee for reasonable
expenses, disbursements and advances shall constitute additional indebtedness hereunder. 
Such additional indebtedness shall be secured by a lien prior to that of
the Securities upon all property and funds held or collected by the Trustee as
such, except funds held in trust for the benefit of the holders of particular
Securities.

 

(c)           To ensure the Company’s payment obligations in this Section, the
Trustee shall have a lien prior to the Securities on all funds or property held
or collected by the Trustee, except that held in trust to pay principal of or
interest on particular Securities.  When
the Trustee incurs expenses or renders services in connection with an Event of
Default specified in Section 6.01(4) or (5), the expenses (including
the reasonable fees and expenses of its counsel) and the compensation for
services in connection therewith are to constitute expenses of administration
under any bankruptcy law.  The provisions
of this Section 7.06 shall survive the termination of this Indenture and
the resignation or removal of the Trustee.

 

Section 7.07         Reliance
on Officer’s Certificate.

 

Except as otherwise provided in Section 7.01,
whenever in the administration of the provisions of this Indenture the Trustee
shall deem it reasonably necessary or desirable that a matter be proved or
established prior to taking or suffering or omitting to take any action
hereunder, such matter (unless other evidence in respect thereof be herein
specifically prescribed) may, in the absence of negligence or bad faith on the
part of the Trustee, be deemed to be conclusively proved and established by an
Officer’s Certificate delivered to the Trustee and such certificate, in the
absence of negligence or bad faith on the part of the Trustee, shall be full

 

31

 

warrant to the Trustee
for any action taken, suffered or omitted to be taken by it under the
provisions of this Indenture upon the faith thereof.

 

Section 7.08         Disqualification;
Conflicting Interests.

 

If the Trustee has or shall acquire any “conflicting
interest” within the meaning of Section 310(b) of the Trust Indenture
Act, the Trustee and the Company shall in all respects comply with the
provisions of Section 310(b) of the Trust Indenture Act.

 

Section 7.09         Corporate
Trustee Required; Eligibility.

 

There shall at all times be a Trustee with respect to
the Securities issued hereunder which shall at all times be a corporation
organized and doing business under the laws of the United States of America or
any state or territory thereof or of the District of Columbia, or a corporation
or other Person permitted to act as trustee by the Commission, authorized under
such laws to exercise corporate trust powers, having a combined capital and
surplus of at least fifty million U.S. dollars ($50,000,000), and subject to
supervision or examination by federal, state, territorial, or District of
Columbia authority.

 

If such corporation or other Person publishes reports
of condition at least annually, pursuant to law or to the requirements of the
aforesaid supervising or examining authority, then for the purposes of this
Section, the combined capital and surplus of such corporation or other Person
shall be deemed to be its combined capital and surplus as set forth in its most
recent report of condition so published. 
The Company may not, nor may any Person directly or indirectly
controlling, controlled by, or under common control with the Company, serve as
Trustee.  In case at any time the Trustee
shall cease to be eligible in accordance with the provisions of this Section,
the Trustee shall resign immediately in the manner and with the effect
specified in Section 7.10.

 

Section 7.10         Resignation
and Removal; Appointment of Successor.

 

(a)           The Trustee or any successor hereafter appointed may at any time resign
with respect to the Securities of one or more series by giving written notice
thereof to the Company and by transmitting notice of resignation by mail, first
class postage prepaid, to the Securityholders of such series, as their names
and addresses appear upon the Security Register.  Upon receiving such notice of resignation,
the Company shall promptly appoint a successor trustee with respect to
Securities of such series by written instrument, in duplicate, executed by order
of the Board of Directors, one copy of which instrument shall be delivered to
the resigning Trustee and one copy to the successor trustee.  If no successor trustee shall have been so
appointed and have accepted appointment within 30 days after the mailing of
such notice of resignation, the resigning Trustee may petition any court of
competent jurisdiction for the appointment of a successor trustee with respect
to Securities of such series, or any Securityholder of that series who has been
a bona fide holder of a Security or Securities for at least six months may on
behalf of himself and all others similarly situated, petition any such court
for the appointment of a successor trustee. 
Such court may thereupon after such notice, if any, as it may deem proper
and prescribe, appoint a successor trustee.

 

32

 

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

 

(i)            the Trustee shall fail to comply with the provisions
of Section 7.08 after written request therefor by the Company or by any
Securityholder who has been a bona fide holder of a Security or Securities for
at least six months; or

 

(ii)           the Trustee shall cease to be eligible in accordance
with the provisions of Section 7.09 and shall fail to resign after written
request therefor by the Company or by any such Securityholder; or

 

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

 

then, in any such case, the Company may remove the
Trustee with respect to all Securities and appoint a successor trustee by
written instrument, in duplicate, executed by order of the Board of Directors,
one copy of which instrument shall be delivered to the Trustee so removed and
one copy to the successor trustee, or any Securityholder who has been a bona
fide holder of a Security or Securities for at least six months may, on behalf
of that holder and all others similarly situated, petition any court of
competent jurisdiction for the removal of the Trustee and the appointment of a successor
trustee.  Such court may thereupon after
such notice, if any, as it may deem proper and prescribe, remove the Trustee
and appoint a successor trustee.

 

(c)           The holders of a majority in aggregate principal amount of the
Securities of any series at the time Outstanding may at any time remove the
Trustee with respect to such series by so notifying the Trustee and the Company
and may appoint a successor Trustee for such series with the consent of the
Company.

 

(d)           Any resignation or removal of the Trustee and appointment of a
successor trustee with respect to the Securities of a series pursuant to any of
the provisions of this Section shall become effective upon acceptance of
appointment by the successor trustee as provided in Section 7.11.

 

(e)           Any successor trustee appointed pursuant to this Section may be
appointed with respect to the Securities of one or more series or all of such
series, and at any time there shall be only one Trustee with respect to the
Securities of any particular series.

 

Section 7.11         Acceptance
of Appointment By Successor.

 

(a)           In case of the appointment hereunder of a successor trustee with
respect to all Securities, every such successor trustee so appointed shall
execute, acknowledge and deliver to the Company and to the retiring Trustee an
instrument accepting such appointment, and thereupon the resignation or removal
of the retiring Trustee shall become effective and such successor trustee,
without any further act, deed or conveyance, shall become vested with all the
rights, powers, trusts and duties of the retiring Trustee; but, on the request
of the Company or the

 

33

 

successor trustee, such retiring Trustee shall, upon
payment of its charges, execute and deliver an instrument transferring to such
successor trustee all the rights, powers, and trusts of the retiring Trustee
and shall duly assign, transfer and deliver to such successor trustee all
property and money held by such retiring Trustee hereunder.

 

(b)           In case of the appointment hereunder of a successor trustee with
respect to the Securities of one or more (but not all) series, the Company, the
retiring Trustee and each successor trustee with respect to the Securities of
one or more series shall execute and deliver an indenture supplemental hereto
wherein each successor trustee shall accept such appointment and which (i) shall
contain such provisions as shall be necessary or desirable to transfer and
confirm to, and to vest in, each successor trustee all the rights, powers,
trusts and duties of the retiring Trustee with respect to the Securities of
that or those series to which the appointment of such successor trustee
relates, (ii) shall contain such provisions as shall be deemed necessary
or desirable to confirm that all the rights, powers, trusts and duties of the
retiring Trustee with respect to the Securities of that or those series as to
which the retiring Trustee is not retiring shall continue to be vested in the
retiring Trustee, and (iii) shall add to or change any of the provisions
of this Indenture as shall be necessary to provide for or facilitate the
administration of the trusts hereunder by more than one Trustee, it being
understood that nothing herein or in such supplemental indenture shall
constitute such Trustees co-trustees of the same trust, that each such Trustee
shall be trustee of a trust or trusts hereunder separate and apart from any
trust or trusts hereunder administered by any other such Trustee and that no
Trustee shall be responsible for any act or failure to act on the part of any
other Trustee hereunder; and upon the execution and delivery of such
supplemental indenture the resignation or removal of the retiring Trustee shall
become effective to the extent provided therein, such retiring Trustee shall
with respect to the Securities of that or those series to which the appointment
of such successor trustee relates have no further responsibility for the
exercise of rights and powers or for the performance of the duties and
obligations vested in the Trustee under this Indenture, and each such successor
trustee, without any further act, deed or conveyance, shall become vested with
all the rights, powers, trusts and duties of the retiring Trustee with respect
to the Securities of that or those series to which the appointment of such
successor trustee relates; but, on request of the Company or any successor
trustee, such retiring Trustee shall duly assign, transfer and deliver to such
successor trustee, to the extent contemplated by such supplemental indenture,
the property and money held by such retiring Trustee hereunder with respect to
the Securities of that or those series to which the appointment of such
successor trustee relates.

 

(c)           Upon request of any such successor trustee, the Company shall execute
any and all instruments for more fully and certainly vesting in and confirming
to such successor trustee all such rights, powers and trusts referred to in
paragraph (a) or (b) of this Section, as the case may be.

 

(d)           No successor trustee shall accept its appointment unless at the time of
such acceptance such successor trustee shall be qualified and eligible under
this Article.

 

(e)           Upon acceptance of appointment by a successor trustee as provided in
this Section, the Company shall transmit notice of the succession of such
trustee hereunder by mail, first class postage prepaid, to the Securityholders,
as their names and addresses appear upon the Security Register.  If the Company fails to transmit such notice
within ten days after acceptance

 

34

 

of appointment by the successor trustee, the successor
trustee shall cause such notice to be transmitted at the expense of the
Company.

 

Section 7.12         Merger,
Conversion, Consolidation or Succession to Business.

 

Any corporation into which the Trustee may be merged
or converted or with which it may be consolidated, or any corporation resulting
from any merger, conversion or consolidation to which the Trustee shall be a
party, or any corporation succeeding to the corporate trust business of the
Trustee, including the administration of the trust created by this Indenture,
shall be the successor of the Trustee hereunder, provided that such corporation
shall be qualified under the provisions of Section 7.08 and eligible under
the provisions of Section 7.09, without the execution or filing of any
paper or any further act on the part of any of the parties hereto, anything
herein to the contrary notwithstanding. 
In case any Securities shall have been authenticated, but not delivered,
by the Trustee then in office, any successor by merger, conversion or
consolidation to such authenticating Trustee may adopt such authentication and
deliver the Securities so authenticated with the same effect as if such
successor Trustee had itself authenticated such Securities.

 

Section 7.13         Preferential
Collection of Claims Against the Company.

 

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

 

Section 7.14         Notice of Default

 

If any Event of Default occurs and is continuing and
if such Event of Default is known to a Responsible Officer of the Trustee, the
Trustee shall mail to each Securityholder in the manner and to the extent
provided in Section 313(c) of the Trust Indenture Act notice of the
Event of Default within the earlier of 90 days after it occurs and 30 days
after it is known to a Responsible Officer of the Trustee or written notice of
it is received by the Trustee, unless such Event of Default has been cured; provided, however, that, except in the
case of a default in the payment of the principal of (or premium, if any) or
interest on any Security, the Trustee shall be protected in withholding such
notice if and so long as the board of directors, the executive committee or a
trust committee of directors and/or Responsible Officers of the Trustee in good
faith determine that the withholding of such notice is in the interest of the
Securityholders.

 

ARTICLE 8

 

CONCERNING THE SECURITYHOLDERS

 

Section 8.01         Evidence
of Action by Securityholders.

 

Whenever in this Indenture it is provided that the holders
of a majority or specified percentage in aggregate principal amount of the
Securities of a particular series may take any action (including the making of
any demand or request, the giving of any notice, consent or

 

35

 

waiver or the taking of
any other action), the fact that at the time of taking any such action the
holders of such majority or specified percentage of that series have joined
therein may be evidenced by any instrument or any number of instruments of
similar tenor executed by such holders of Securities of that series in person
or by agent or proxy appointed in writing.

 

If the Company shall solicit from the Securityholders
of any series any request, demand, authorization, direction, notice, consent,
waiver or other action, the Company may, at its option, as evidenced by an
Officer’s Certificate, fix in advance a record date for such series for the
determination of Securityholders entitled to give such request, demand,
authorization, direction, notice, consent, waiver or other action, but the
Company shall have no obligation to do so. 
If such a record date is fixed, such request, demand, authorization,
direction, notice, consent, waiver or other action may be given before or after
the record date, but only the Securityholders of record at the close of
business on the record date shall be deemed to be Securityholders for the
purposes of determining whether Securityholders of the requisite proportion of
Outstanding Securities of that series have authorized or agreed or consented to
such request, demand, authorization, direction, notice, consent, waiver or
other action, and for that purpose the Outstanding Securities of that series
shall be computed as of the record date; provided, however, that no such
authorization, agreement or consent by such Securityholders on the record date
shall be deemed effective unless it shall become effective pursuant to the
provisions of this Indenture not later than six months after the record date.

 

Section 8.02         Proof
of Execution by Securityholders.

 

Subject to the provisions of Section 7.01, proof
of the execution of any instrument by a Securityholder (such proof will not
require notarization) or his agent or proxy and proof of the holding by any
Person of any of the Securities shall be sufficient if made in the following
manner:

 

(a)           The fact and date of the execution by any such Person of any instrument
may be proved in any reasonable manner acceptable to the Trustee.

 

(b)           The ownership of Securities shall be proved by the Security Register of
such Securities or by a certificate of the Security Registrar thereof.

 

The Trustee may require
such additional proof of any matter referred to in this Section as it
shall deem necessary.

 

Section 8.03         Who
May be Deemed Owners.

 

Prior to the due presentment for registration of
transfer of any Security, the Company, the Trustee, any paying agent and any
Security Registrar may deem and treat the Person in whose name such Security
shall be registered upon the books of the Company as the absolute owner of such
Security (whether or not such Security shall be overdue and notwithstanding any
notice of ownership or writing thereon made by anyone other than the Security
Registrar) for the purpose of receiving payment of or on account of the
principal of, premium, if any, and (subject to Section 2.03) interest on
such Security and for all other purposes; and neither the Company nor

 

36

 

the Trustee nor any
paying agent nor any Security Registrar shall be affected by any notice to the
contrary.

 

Section 8.04         Certain
Securities Owned by Company Disregarded.

 

In determining whether the holders of the requisite
aggregate principal amount of Securities of a particular series have concurred
in any direction, consent or waiver under this Indenture, the Securities of
that series that are owned by the Company or any other obligor on the
Securities of that series or by any Person directly or indirectly controlling
or controlled by or under common control with the Company or any other obligor
on the Securities of that series shall be disregarded and deemed not to be
Outstanding for the purpose of any such determination, except that for the
purpose of determining whether the Trustee shall be protected in relying on any
such direction, consent or waiver, only Securities of such series that the
Trustee actually knows are so owned shall be so disregarded.  The Securities so owned that have been
pledged in good faith may be regarded as Outstanding for the purposes of this
Section, if the pledgee shall establish to the satisfaction of the Trustee the
pledgee’s right so to act with respect to such Securities and that the pledgee
is not a Person directly or indirectly controlling or controlled by or under
direct or indirect common control with the Company or any such other
obligor.  In case of a dispute as to such
right, any decision by the Trustee taken upon the advice of counsel shall be
full protection to the Trustee.

 

Section 8.05         Actions
Binding on Future Securityholders.

 

At any time prior to (but not after) the evidencing to
the Trustee, as provided in Section 8.01, of the taking of any action by
the holders of the majority or percentage in aggregate principal amount of the
Securities of a particular series specified in this Indenture in connection
with such action, any holder of a Security of that series that is shown by the
evidence to be included in the Securities the holders of which have consented
to such action may, by filing written notice with the Trustee, and upon proof
of holding as provided in Section 8.02, revoke such action so far as
concerns such Security.  Except as
aforesaid any such action taken by the holder of any Security shall be
conclusive and binding upon such holder and upon all future holders and owners
of such Security, and of any Security issued in exchange therefor, on
registration of transfer thereof or in place thereof, irrespective of whether
or not any notation in regard thereto is made upon such Security.  Any action taken by the holders of the
majority or percentage in aggregate principal amount of the Securities of a
particular series specified in this Indenture in connection with such action
shall be conclusively binding upon the Company, the Trustee and the holders of
all the Securities of that series.

 

ARTICLE 9

 

SUPPLEMENTAL INDENTURES

 

Section 9.01         Supplemental
Indentures Without the Consent of Securityholders.

 

In addition to any supplemental indenture otherwise
authorized by this Indenture, the Company and the Trustee may from time to time
and at any time enter into an indenture or indentures supplemental hereto
(which shall conform to the provisions of the Trust Indenture Act

 

37

 

as then in effect),
without the consent of the Securityholders, for one or more of the following
purposes:

 

(a)           to cure any ambiguity, defect, or inconsistency herein or in the
Securities of any series;

 

(b)           to comply with Article Ten;

 

(c)           to provide for uncertificated Securities in addition to or in place of
certificated Securities;

 

(d)           to add to the covenants, restrictions, conditions or provisions
relating to the Company for the benefit of the holders of all or any series of
Securities (and if such covenants, restrictions, conditions or provisions are
to be for the benefit of less than all series of Securities, stating that such
covenants, restrictions, conditions or provisions are expressly being included
solely for the benefit of such series), to make the occurrence, or the
occurrence and the continuance, of a default in any such additional covenants,
restrictions, conditions or provisions an Event of Default, or to surrender any
right or power herein conferred upon the Company;

 

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

 

(f)            to make any change that does not adversely affect the rights of any
Securityholder in any material respect;

 

(g)           to provide for the issuance of and establish the form and terms and
conditions of the Securities of any series as provided in Section 2.01, to
establish the form of any certifications required to be furnished pursuant to
the terms of this Indenture or any series of Securities, or to add to the
rights of the holders of any series of Securities;

 

(h)           to evidence and provide for the acceptance of appointment hereunder by
a successor trustee; or

 

(i)            to comply with any requirements of the Commission or any successor in
connection with the qualification of this Indenture under the Trust Indenture
Act.

 

The Trustee is hereby authorized to join with the
Company in the execution of any such supplemental indenture, and to make any
further appropriate agreements and stipulations that may be therein contained,
but the Trustee shall not be obligated to enter into any such supplemental
indenture that affects the Trustee’s own rights, duties or immunities under
this Indenture or otherwise.

 

Any supplemental indenture authorized by the
provisions of this Section may be executed by the Company and the Trustee
without the consent of the holders of any of the Securities at the time
Outstanding, notwithstanding any of the provisions of Section 9.02.

 

38

 

Section 9.02         Supplemental
Indentures With Consent of Securityholders.

 

With the consent (evidenced as provided in Section 8.01)
of the holders of not less than a majority in aggregate principal amount of the
Securities of each series affected by such supplemental indenture or indentures
at the time Outstanding, the Company, when authorized by a Board Resolution,
and the Trustee may from time to time and at any time enter into an indenture
or indentures supplemental hereto (which shall conform to the provisions of the
Trust Indenture Act as then in effect) for the purpose of adding any provisions
to or changing in any manner or eliminating any of the provisions of this
Indenture or of any supplemental indenture or of modifying in any manner not
covered by Section 9.01 the rights of the holders of the Securities of
such series under this Indenture; provided, however, that no such supplemental
indenture shall, without the consent of the holders of each Security then
Outstanding and affected thereby, (a) extend the fixed maturity of any
Securities of any series, or reduce the principal amount thereof, or reduce the
rate or extend the time of payment of interest thereon, or reduce any premium
payable upon the redemption thereof or (b) reduce the aforesaid percentage
of Securities, the holders of which are required to consent to any such
supplemental indenture.

 

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

 

Section 9.03         Effect
of Supplemental Indentures.

 

Upon the execution of any supplemental indenture
pursuant to the provisions of this Article or of Section 10.01, this
Indenture shall, with respect to such series, be and be deemed to be modified
and amended in accordance therewith and the respective rights, limitations of
rights, obligations, duties and immunities under this Indenture of the Trustee,
the Company and the holders of Securities of the series affected thereby shall
thereafter be determined, exercised and enforced hereunder subject in all
respects to such modifications and amendments, and all the terms and conditions
of any such supplemental indenture shall be and be deemed to be part of the
terms and conditions of this Indenture for any and all purposes.

 

Section 9.04         Securities
Affected by Supplemental Indentures.

 

Securities of any series affected by a supplemental
indenture, authenticated and delivered after the execution of such supplemental
indenture pursuant to the provisions of this Article or of Section 10.01,
may bear a notation in form approved by the Company, provided such form meets
the requirements of any securities exchange upon which such series may be
listed, as to any matter provided for in such supplemental indenture.  If the Company shall so determine, new
Securities of that series so modified as to conform, in the opinion of the Board
of Directors, to any modification of this Indenture contained in any such
supplemental indenture may be prepared by the Company, authenticated by the
Trustee and delivered in exchange for the Securities of that series then
Outstanding.

 

39

 

Section 9.05         Execution
of Supplemental Indentures.

 

Upon the request of the Company, accompanied by its
Board Resolutions authorizing the execution of any such supplemental indenture,
and upon the filing with the Trustee of evidence of the consent of Securityholders
required to consent thereto as aforesaid, the Trustee shall join with the
Company in the execution of such supplemental indenture unless such
supplemental indenture affects the Trustee’s own rights, duties or immunities
under this Indenture or otherwise, in which case the Trustee may in its
discretion but shall not be obligated to enter into such supplemental
indenture. The Trustee, subject to the provisions of Section 7.01, shall
receive an Officer’s Certificate or an Opinion of Counsel as conclusive
evidence that any supplemental indenture executed pursuant to this Article is
authorized or permitted by the terms of this Article and that all
conditions precedent to the execution of the supplemental indenture have been
complied with; provided, however, that such Officer’s Certificate or Opinion of
Counsel need not be provided in connection with the execution of a supplemental
indenture that establishes the terms of a series of Securities pursuant to Section 2.01
hereof.

 

Promptly after the execution by the Company and the
Trustee of any supplemental indenture pursuant to the provisions of this
Section, the Company shall (or shall direct the Trustee to) transmit by mail,
first class postage prepaid, a notice, setting forth in general terms the substance
of such supplemental indenture, to the Securityholders of all series affected
thereby .as their names and addresses appear upon the Security Register. Any
failure of the Company to mail, or cause the mailing of, such notice, or any
defect therein, shall not, however, in any way impair or affect the validity of
any such supplemental indenture.

 

ARTICLE 10

 

SUCCESSOR ENTITY

 

Section 10.01       Company
May Consolidate, Etc.

 

Nothing contained in this Indenture shall prevent any
consolidation or merger of the Company with or into any other Person (whether
or not affiliated with the Company) or successive consolidations or mergers in
which the Company or its successor or successors shall be a party or parties,
or shall prevent any sale, conveyance, transfer or other disposition of the
property of the Company or its successor or successors as an entirety, or
substantially as an entirety, to any other corporation (whether or not
affiliated with the Company or its successor or successors) authorized to
acquire and operate the same; provided, however, (a) the Company hereby
covenants and agrees that, upon any such consolidation or merger (in each case,
if the Company is not the survivor of such transaction), sale, conveyance,
transfer or other disposition, the due and punctual payment of the principal of
(premium, if any) and interest on all of the Securities of all series in
accordance with the terms of each series, according to their tenor, and the due
and punctual performance and observance of all the covenants and conditions of
this Indenture with respect to each series or established with respect to such
series pursuant to Section 2.01 to be kept or performed by the Company
shall be expressly assumed, by supplemental indenture (which shall conform to
the provisions of the Trust Indenture Act, as then in effect) reasonably
satisfactory in form to the Trustee executed and delivered to the Trustee by
the entity formed by such consolidation, or into which the Company shall have
been merged, or by the

 

40

 

entity which shall have
acquired such property and (b) in the event that the Securities of any
series then Outstanding are convertible into or exchangeable for shares of
common stock or other securities of the Company, such entity shall, by such
supplemental indenture, make provision so that the Securityholders of
Securities of that series shall thereafter be entitled to receive upon
conversion or exchange of such Securities the number of securities or property
to which a holder of the number of shares of common stock or other securities
of the Company deliverable upon conversion or exchange of those Securities
would have been entitled had such conversion or exchange occurred immediately
prior to such consolidation, merger, sale, conveyance, transfer or other
disposition.

 

Section 10.02       Successor
Entity Substituted.

 

(a)   In
case of any such consolidation, merger, sale, conveyance, transfer or other
disposition and upon the assumption by the successor entity by supplemental indenture,
executed and delivered to the Trustee and satisfactory in form to the Trustee,
of the obligations set forth under Section 10.01 on all of the Securities
of all series Outstanding, such successor entity shall succeed to and be
substituted for the Company with the same effect as if it had been named as the
Company herein, and thereupon the predecessor corporation shall be relieved of
all obligations and covenants under this Indenture and the Securities.

 

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

 

(c)   Nothing
contained in this Article shall require any action by the Company in the
case of a consolidation or merger of any Person into the Company where the
Company is the survivor of such transaction, or the acquisition by the Company,
by purchase or otherwise, of all or any part of the property of any other
Person (whether or not affiliated with the Company).

 

ARTICLE 11

 

SATISFACTION AND DISCHARGE

 

Section 11.01       Satisfaction
and Discharge of Indenture.

 

If at any time: (a) the Company shall have
delivered to the Trustee for cancellation all Securities of a series theretofore
authenticated and not delivered to the Trustee for cancellation (other than any
Securities that shall have been destroyed, lost or stolen and that shall have
been replaced or paid as provided in Section 2.07 and Securities for whose
payment money or Governmental Obligations have theretofore been deposited in
trust or segregated and held in trust by the Company and thereupon repaid to
the Company or discharged from such trust, as provided in Section 11.05);
or (b) all such Securities of a particular series not theretofore
delivered to the Trustee for cancellation shall have become due and payable, or
are by their terms to become due and payable within one year or are to be
called for redemption within one year under arrangements satisfactory to the Trustee
for the giving of notice of redemption, and the Company shall deposit or cause
to be deposited with the Trustee as trust funds the entire amount in moneys or
Governmental Obligations or a combination thereof, sufficient in the opinion of
a nationally 

 

41

 

recognized firm of
independent public accountants expressed in a written certification thereof
delivered to the Trustee, to pay at maturity or upon redemption all Securities
of that series not theretofore delivered to the Trustee for cancellation,
including principal (and premium, if any) and interest due or to become due to
such date of maturity or date fixed for redemption, as the case may be, and if
the Company shall also pay or cause to be paid all other sums payable hereunder
with respect to such series by the Company then this Indenture shall thereupon
cease to be of further effect with respect to such series except for the
provisions of Sections 2.03, 2.05, 2.07, 4.01, 4.02, 4.03 and 7.10, that shall
survive until the date of maturity or redemption date, as the case may be, and
Sections 7.06 and 11.05, that shall survive to such date and thereafter, and
the Trustee, on demand of the Company and at the cost and expense of the
Company shall execute proper instruments acknowledging satisfaction of and
discharging this Indenture with respect to such series.

 

Section 11.02       Discharge
of Obligations.

 

If at any time all such Securities of a particular
series not heretofore delivered to the Trustee for cancellation or that have
not become due and payable as described in Section 11.01 shall have been
paid by the Company by depositing irrevocably with the Trustee as trust funds
moneys or an amount of Governmental Obligations sufficient to pay at maturity
or upon redemption all such Securities of that series not theretofore delivered
to the Trustee for cancellation, including principal (and premium, if any) and
interest due or to become due to such date of maturity or date fixed for
redemption, as the case may be, and if the Company shall also pay or cause to
be paid all other sums payable hereunder by the Company with respect to such
series, then after the date such moneys or Governmental Obligations, as the
case may be, are deposited with the Trustee the obligations of the Company
under this Indenture with respect to such series shall cease to be of further
effect except for the provisions of Sections 2.03, 2.05, 2.07, 4,01, 4.02,
4,03, 7.06, 7.10 and 11.05 hereof that shall survive until such Securities
shall mature and be paid.

 

Thereafter, Sections 7.06 and 11.05 shall survive.

 

Section 11.03       Deposited
Moneys to be Held in Trust.

 

All moneys or Governmental Obligations deposited with
the Trustee pursuant to Sections 11.01 or 11.02 shall be held in trust and shall
be available for payment as due, either directly or through any paying agent
(including the Company acting as its own paying agent), to the holders of the
particular series of Securities for the payment or redemption of which such
moneys or Governmental Obligations have been deposited with the Trustee.

 

Section 11.04       Payment
of Moneys Held by Paying Agents.

 

In connection with the satisfaction and discharge of
this Indenture all moneys or Governmental Obligations then held by any paying
agent under the provisions of this Indenture shall, upon demand of the Company,
be paid to the Trustee and thereupon such paying agent shall be released from
all further liability with respect to such moneys or Governmental Obligations.

 

42

 

Section 11.05       Repayment
to Company.

 

Any moneys or Governmental Obligations deposited with
any paying agent or the Trustee, or then held by the Company, in trust for
payment of principal of or premium, if any, or interest on the Securities of a
particular series that are not applied but remain unclaimed by the holders of
such Securities for at least two years after the date upon which the principal
of (and premium, if any) or interest on such Securities shall have respectively
become due and payable, or such other shorter period set forth in applicable
escheat or abandoned or unclaimed property law, shall be repaid to the Company
on May 31 of each year or upon the Company’s request or (if then held by
the Company) shall be discharged from such trust; and thereupon the paying
agent and the Trustee shall be released from all further liability with respect
to such moneys or Governmental Obligations, and the holder of any of the
Securities entitled to receive such payment shall thereafter, as a general
creditor, look only to the Company for the payment thereof.

 

ARTICLE 12

 

IMMUNITY OF INCORPORATORS, STOCKHOLDERS, OFFICERS
AND DIRECTORS

 

Section 12.01       No
Recourse.

 

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

 

43

 

ARTICLE 13

 

MISCELLANEOUS PROVISIONS

 

Section 13.01       Effect
on Successors and Assigns.

 

All the covenants, stipulations, promises and
agreements in this Indenture made by or on behalf of the Company shall bind its
successors and assigns, whether so expressed or not.

 

Section 13.02       Actions
by Successor.

 

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

 

Section 13.03       Surrender
of Company Powers.

 

The Company by instrument in writing executed by
authority of its Board of Directors and delivered to the Trustee may surrender
any of the powers reserved to the Company, and thereupon such power so
surrendered shall terminate both as to the Company and as to any successor
corporation.

 

Section 13.04       Notices.

 

Except as otherwise expressly provided herein, any
notice, request or demand that by any provision of this Indenture is required
or permitted to be given, made or served by the Trustee or by the holders of
Securities or by any other Person pursuant to this Indenture to or on the
Company may be given or served by being deposited in first class mail, postage
prepaid, addressed (until another address is filed in writing by the Company
with the Trustee), as follows:                                                                                                                 .  Any notice, election, request or demand by
the Company or any Securityholder or by any other Person pursuant to this
Indenture to or upon the Trustee shall be deemed to have been sufficiently
given or made, for all purposes, if given or made in writing at the Corporate
Trust Office of the Trustee.

 

Section 13.05       Governing
Law.

 

This Indenture and each Security shall be deemed to be
a contract made under the internal laws of the State of New York, and for all
purposes shall be construed in accordance with the laws of said State, except
to the extent that the Trust Indenture Act is applicable.

 

Section 13.06       Treatment
of Securities as Debt.

 

It is intended that the Securities will be treated as
indebtedness and not as equity for federal income tax purposes.  The provisions of this Indenture shall be
interpreted to further this intention.

 

44

 

Section 13.07       Certificates
and Opinions as to Conditions Precedent.

 

(a)   Upon
any application or demand by the Company to the Trustee to take any action under
any of the provisions of this Indenture, the Company shall furnish to the
Trustee an Officer’s Certificate stating that all conditions precedent provided
for in this Indenture (other than the certificate to be delivered pursuant to Section 13.12)
relating to the proposed action have been complied with and, if requested, an
Opinion of Counsel stating that in the opinion of such counsel all such
conditions precedent have been complied with, except that in the case of any
such application or demand as to which the furnishing of such documents is
specifically required by any provision of this Indenture relating to such
particular application or demand, no additional certificate or opinion need be
furnished.

 

(b)   Each
certificate or opinion provided for in this Indenture and delivered to the
Trustee with respect to compliance with a condition or covenant in this
Indenture shall include (i) a statement that the Person making such
certificate or opinion has read such covenant or condition; (ii) a brief
statement as to the nature and scope of the examination or investigation upon
which the statements or opinions contained in such certificate or opinion are
based; (iii) a statement that, in the opinion of such Person, he has made
such examination or investigation as is reasonably necessary to enable him to
express an informed opinion as to whether or not such covenant or condition has
been complied with; and (iv) a statement as to whether or not, in the
opinion of such Person, such condition or covenant has been complied with.

 

Section 13.08       Payments
on Business Days.

 

Except as provided pursuant to Section 2.01
pursuant to a Board Resolution, and set forth in an Officer’s Certificate, or
established in one or more indentures supplemental to this Indenture, in any case
where the date of maturity of interest or principal of any Security or the date
of redemption of any Security shall not be a Business Day, then payment of
interest or principal (and premium, if any) may be made on the next succeeding
Business Day with the same force and effect as if made on the nominal date of
maturity or redemption, and no interest shall accrue for the period after such
nominal date.

 

Section 13.09       Conflict
with Trust Indenture Act.

 

If and to the extent that any provision of this Indenture
limits, qualifies or conflicts with the duties imposed by Sections 310 to 317,
inclusive, of the Trust Indenture Act, such imposed duties shall control.

 

Section 13.10       Counterparts.

 

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

 

Section 13.11       Separability.

 

In case any one or more of the provisions contained in
this Indenture or in the Securities of any series shall for any reason be held
to be invalid, illegal or unenforceable in any respect,

 

45

 

such invalidity,
illegality or unenforceability shall not affect any other provisions of this
Indenture or of such Securities, but this Indenture and such Securities shall
be construed as if such invalid or illegal or unenforceable provision had never
been contained herein or therein.

 

Section 13.12       Compliance Certificates.

 

The Company shall deliver to the Trustee, within 120
days after the end of each fiscal year during which any Securities of any
series were outstanding, an officer’s certificate stating whether or not the
signers know of any Event of Default that occurred during such fiscal
year.  Such certificate shall contain a
certification from the principal executive officer, principal financial officer
or principal accounting officer of the Company that a review has been conducted
of the activities of the Company and the Company’s performance under this
Indenture and that the Company has complied with all conditions and covenants
under this Indenture.  For purposes of
this Section 13.12, such compliance shall be determined without regard to
any period of grace or requirement of notice provided under this
Indenture.  If the officer of the Company
signing such certificate has knowledge of such an Event of Default, the
certificate shall describe any such Event of Default and its status.

 

46

 

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

 

	
   

  	
  AMAG PHARMACEUTICALS, INC.

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  [TRUSTEE], as Trustee

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  

 

47

 

CROSS-REFERENCE TABLE (1)

 

	
  Section of
  Trust Indenture Act of 1939, as Amended

  	
   

  	
  Section of Indenture

  
	
  310(a)

  	
   

  	
  7.09

  
	
  310(b)

  	
   

  	
  7.08

  
	
   

  	
   

  	
  7.10

  
	
  310(c)

  	
   

  	
  Inapplicable

  
	
  311(a)

  	
   

  	
  7.13

  
	
  311(b)

  	
   

  	
  7.13

  
	
  311(c)

  	
   

  	
  Inapplicable

  
	
  312(a)

  	
   

  	
  5.01

  
	
   

  	
   

  	
  5.02(a)

  
	
  312(b)

  	
   

  	
  5.02(c)

  
	
  312(c)

  	
   

  	
  5.02(c)

  
	
  313(a)

  	
   

  	
  5.04(a)

  
	
  313(b)

  	
   

  	
  5.04(b)

  
	
  313(c)

  	
   

  	
  5.04(a)

  
	
   

  	
   

  	
  5.04(b)

  
	
  313(d)

  	
   

  	
  5.04(c)

  
	
  314(a)

  	
   

  	
  5.03

  
	
   

  	
   

  	
  13.12

  
	
  314(b)

  	
   

  	
  Inapplicable

  
	
  314(c)

  	
   

  	
  13.07(a)

  
	
  314(d)

  	
   

  	
  Inapplicable

  
	
  314(e)

  	
   

  	
  13.07(b)

  
	
  314(f)

  	
   

  	
  Inapplicable

  
	
  315(a)

  	
   

  	
  7.01(a)

  
	
   

  	
   

  	
  7.01(b)

  
	
  315(b)

  	
   

  	
  7.14

  
	
  315(c)

  	
   

  	
  7.01

  
	
  315(d)

  	
   

  	
  7.01(b)

  
	
  315(e)

  	
   

  	
  6.07

  
	
  316(a)

  	
   

  	
  6.06

  
	
   

  	
   

  	
  8.04

  
	
  316(b)

  	
   

  	
  6.04

  
	
  316(c)

  	
   

  	
  8.01

  
	
  317(a)

  	
   

  	
  6.02

  
	
  317(b)

  	
   

  	
  4.03

  
	
  318(a)

  	
   

  	
  13.09

  

 

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

 

48

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