Document:

Exhibit 4.1

	
  

 	
  

 
	

 

 
	
  

 	
  

 
	
 ANNALY CAPITAL MANAGEMENT, INC.,

 
	
  

 	
  Issuer

 
	
  

 
	
 to

 
	
  

 
	
 WELLS FARGO BANK, NATIONAL ASSOCIATION,

 
	
  

 	
  Trustee

 
	
  

 
	

 

 
	
  

 
	
 INDENTURE

 
	
  

 
	

 

 
	
  

 
	
 Dated as of February 12, 2010

 
	
  

 
	
 Debt Securities

 
	
  

 
	

 

 

CROSS-REFERENCE TABLE*

	
  

 	
  

 	
  

 
	
 Trust
 Indenture Act Section

 	
 Indenture
 Section

 
	

 

 	

 

 
	
  

 	
  

 	
  

 
	
 310(a)

 	
 (1)

 	
 607

 
	
 (a)

 	
 (2)

 	
 607

 
	
 (a)

 	
 (3)

 	
 N.A.

 
	
 (a)

 	
 (4)

 	
 N.A.

 
	
 (a)

 	
 (5)

 	
 607

 
	
 (b)

 	
  

 	
 608

 
	
 (c)

 	
  

 	
 N.A.

 
	
 311(a)

 	
  

 	
 604

 
	
 (b)

 	
  

 	
 604

 
	
 (c)

 	
  

 	
 N.A.

 
	
 312(a)

 	
  

 	
 701, 702

 
	
 (b)

 	
  

 	
 702

 
	
 (c)

 	
  

 	
 702

 
	
 313(a)

 	
  

 	
 703

 
	
 (b)

 	
  

 	
 1601

 
	
 (c)

 	
  

 	
 703

 
	
 (d)

 	
  

 	
 703

 
	
 314(a)

 	
  

 	
 704, 1007

 
	
 (b)

 	
  

 	
 N.A.

 
	
 (c)

 	
 (1)

 	
 102

 
	
 (c)

 	
 (2)

 	
 102

 
	
 (c)

 	
 (3)

 	
 N.A.

 
	
 (d)

 	
  

 	
 N.A.

 
	
 (e)

 	
  

 	
 101

 
	
 (f)

 	
  

 	
 N.A.

 
	
 315(a)

 	
  

 	
 601

 
	
 (b)

 	
  

 	
 602

 
	
 (c)

 	
  

 	
 503

 
	
 (d)

 	
  

 	
 601

 
	
 (e)

 	
  

 	
 515

 
	
 316(a)

 	
 (1)(A)

 	
 502, 512

 
	
 (a)

 	
 (1)(B)

 	
 513

 
	
 (a)

 	
 (2)

 	
 N.A.

 
	
 (b)

 	
  

 	
 508

 
	
 (c)

 	
  

 	
 N.A.

 
	
 317(a)

 	
 (1)

 	
 503

 
	
 (a)

 	
 (2)

 	
 504

 
	
 (b)

 	
  

 	
 1003

 
	
 318(a)

 	
  

 	
 108

 
	
  

 
	

 

 

	
  

 
	
 N.A. means
 not applicable.

 
	
  

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

 

TABLE OF CONTENTS

	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 Page

 
	
  

 	
  

 	
  

 	

 

 
	
  

 	
  

 	
  

 	
  

 
	
 ARTICLE ONE

 
	
  

 
	
 DEFINITIONS AND OTHER PROVISIONS OF GENERAL APPLICATION

 
	
  

 
	
 Section 101.

 	
 Definitions

 	
  

 	
 1

 
	
  

 	
  

 	
  

 	
  

 
	
 Section 102.

 	
 Compliance
 Certificates and Opinions

 	
  

 	
 10

 
	
  

 	
  

 	
  

 	
  

 
	
 Section 103.

 	
 Form of
 Documents Delivered to Trustee

 	
  

 	
 10

 
	
  

 	
  

 	
  

 	
  

 
	
 Section 104.

 	
 Acts of
 Holders

 	
  

 	
 11

 
	
  

 	
  

 	
  

 	
  

 
	
 Section 105.

 	
 Notices,
 etc., to Trustee and Company

 	
  

 	
 12

 
	
  

 	
  

 	
  

 	
  

 
	
 Section 106.

 	
 Notice to
 Holders of Securities; Waiver

 	
  

 	
 13

 
	
  

 	
  

 	
  

 	
  

 
	
 Section 107.

 	
 Language of
 Notices

 	
  

 	
 14

 
	
  

 	
  

 	
  

 	
  

 
	
 Section 108.

 	
 Conflict
 with Trust Indenture Act

 	
  

 	
 14

 
	
  

 	
  

 	
  

 	
  

 
	
 Section 109.

 	
 Effect of
 Headings and Table of Contents

 	
  

 	
 14

 
	
  

 	
  

 	
  

 	
  

 
	
 Section 110.

 	
 Successors
 and Assigns

 	
  

 	
 14

 
	
  

 	
  

 	
  

 	
  

 
	
 Section 111.

 	
 Separability
 Clause

 	
  

 	
 14

 
	
  

 	
  

 	
  

 	
  

 
	
 Section 112.

 	
 Benefits of
 Indenture

 	
  

 	
 15

 
	
  

 	
  

 	
  

 	
  

 
	
 Section 113.

 	
 Governing
 Law; Waiver of Jury Trial; Consent to Jurisdiction

 	
  

 	
 15

 
	
  

 	
  

 	
  

 	
  

 
	
 Section 114.

 	
 Legal
 Holidays

 	
  

 	
 16

 
	
  

 	
  

 	
  

 	
  

 
	
 Section 115.

 	
 Counterparts

 	
  

 	
 16

 
	
  

 	
  

 	
  

 	
  

 
	
 Section 116.

 	
 Judgment
 Currency

 	
  

 	
 16

 
	
  

 	
  

 	
  

 	
  

 
	
 Section 117.

 	
 Extension of
 Payment Dates

 	
  

 	
 17

 
	
  

 	
  

 	
  

 	
  

 
	
 Section 118.

 	
 Immunity of
 Shareholders, Directors, Officers and Agents of the Company

 	
  

 	
 17

 
	
  

 	
  

 	
  

 	
  

 
	
 Section 119.

 	
 Force
 Majeure

 	
  

 	
 7

 
	
  

 	
  

 	
  

 	
  

 
	
 Section 120.

 	
 U.S.A.
 Patriot Act

 	
  

 	
 18

 

i

	
  

 	
  

 	
  

 	
  

 
	
 ARTICLE TWO

 
	
  

 	
  

 	
  

 	
  

 
	
 SECURITIES FORMS

 
	
  

 	
  

 	
  

 	
  

 
	
 Section 201.

 	
 Forms
 Generally

 	
  

 	
 18

 
	
  

 	
  

 	
  

 	
  

 
	
 Section 202.

 	
 Form of
 Trustee’s Certificate of Authentication

 	
  

 	
 18

 
	
  

 	
  

 	
  

 	
  

 
	
 Section 203.

 	
 Securities
 in Global Form

 	
  

 	
 19

 
	
  

 	
  

 	
  

 	
  

 
	
 ARTICLE THREE

 
	
  

 	
  

 	
  

 	
  

 
	
 THE SECURITIES

 
	
  

 	
  

 	
  

 	
  

 
	
 Section 301.

 	
 Amount
 Unlimited; Issuable in Series

 	
  

 	
 20

 
	
  

 	
  

 	
  

 	
  

 
	
 Section 302.

 	
 Currency;
 Denominations

 	
  

 	
 24

 
	
  

 	
  

 	
  

 	
  

 
	
 Section 303.

 	
 Execution,
 Authentication, Delivery and Dating

 	
  

 	
 24

 
	
  

 	
  

 	
  

 	
  

 
	
 Section 304.

 	
 Temporary
 Securities

 	
  

 	
 26

 
	
  

 	
  

 	
  

 	
  

 
	
 Section 305.

 	
 Registration,
 Transfer and Exchange

 	
  

 	
 27

 
	
  

 	
  

 	
  

 	
  

 
	
 Section 306.

 	
 Mutilated,
 Destroyed, Lost and Stolen Securities

 	
  

 	
 31

 
	
  

 	
  

 	
  

 	
  

 
	
 Section 307.

 	
 Payment of
 Interest and Certain Additional Amounts; Rights to Interest and Certain
 Additional Amounts Preserved

 	
  

 	
 32

 
	
  

 	
  

 	
  

 	
  

 
	
 Section 308.

 	
 Persons Deemed
 Owners

 	
  

 	
 33

 
	
  

 	
  

 	
  

 	
  

 
	
 Section 309.

 	
 Cancellation

 	
  

 	
 34

 
	
  

 	
  

 	
  

 	
  

 
	
 Section 310.

 	
 Computation
 of Interest

 	
  

 	
 34

 
	
  

 	
  

 	
  

 	
  

 
	
 Section 311.

 	
 CUSIP
 Numbers

 	
  

 	
 34

 
	
  

 	
  

 	
  

 	
  

 
	
 ARTICLE FOUR

 
	
  

 	
  

 	
  

 	
  

 
	
 SATISFACTION AND DISCHARGE OF INDENTURE

 
	
  

 	
  

 	
  

 	
  

 
	
 Section 401.

 	
 Satisfaction
 and Discharge

 	
  

 	
 35

 
	
  

 	
  

 	
  

 	
  

 
	
 Section 402.

 	
 Defeasance
 and Covenant Defeasance

 	
  

 	
 37

 
	
  

 	
  

 	
  

 	
  

 
	
 Section 403.

 	
 Application
 of Trust Money

 	
  

 	
 41

 
	
  

 	
  

 	
  

 	
  

 
	
 Section 404.

 	
 Reinstatement

 	
  

 	
 41

 

ii

	
  

 	
  

 	
  

 	
  

 
	
 ARTICLE FIVE

 
	
  

 	
  

 	
  

 	
  

 
	
 REMEDIES

 
	
  

 	
  

 	
  

 	
  

 
	
 Section 501.

 	
 Events of
 Default

 	
  

 	
 42

 
	
  

 	
  

 	
  

 	
  

 
	
 Section 502.

 	
 Acceleration
 of Maturity; Rescission and Annulment

 	
  

 	
 44

 
	
  

 	
  

 	
  

 	
  

 
	
 Section 503.

 	
 Collection
 of Indebtedness and Suits for Enforcement by Trustee

 	
  

 	
 45

 
	
  

 	
  

 	
  

 	
  

 
	
 Section 504.

 	
 Trustee
 May File Proofs of Claim

 	
  

 	
 46

 
	
  

 	
  

 	
  

 	
  

 
	
 Section 505.

 	
 Trustee
 May Enforce Claims without Possession of Securities or Coupons

 	
  

 	
 47

 
	
  

 	
  

 	
  

 	
  

 
	
 Section 506.

 	
 Application
 of Money Collected

 	
  

 	
 47

 
	
  

 	
  

 	
  

 	
  

 
	
 Section 507.

 	
 Limitations
 on Suits

 	
  

 	
 48

 
	
  

 	
  

 	
  

 	
  

 
	
 Section 508.

 	
 Unconditional
 Right of Holders to Receive Principal and any Premium, Interest and
 Additional Amounts

 	
  

 	
 48

 
	
  

 	
  

 	
  

 	
  

 
	
 Section 509.

 	
 Restoration
 of Rights and Remedies

 	
  

 	
 49

 
	
  

 	
  

 	
  

 	
  

 
	
 Section 510.

 	
 Rights and
 Remedies Cumulative

 	
  

 	
 49

 
	
  

 	
  

 	
  

 	
  

 
	
 Section 511.

 	
 Delay or
 Omission Not Waiver

 	
  

 	
 49

 
	
  

 	
  

 	
  

 	
  

 
	
 Section 512.

 	
 Control by
 Holders of Securities

 	
  

 	
 49

 
	
  

 	
  

 	
  

 	
  

 
	
 Section 513.

 	
 Waiver of
 Past Defaults

 	
  

 	
 50

 
	
  

 	
  

 	
  

 	
  

 
	
 Section 514.

 	
 Waiver of
 Usury, Stay or Extension Laws

 	
  

 	
 50

 
	
  

 	
  

 	
  

 	
  

 
	
 Section 515.

 	
 Undertaking
 for Costs

 	
  

 	
 50

 
	
  

 	
  

 	
  

 	
  

 
	
 ARTICLE SIX

 
	
  

 	
  

 	
  

 	
  

 
	
 THE TRUSTEE

 
	
  

 	
  

 	
  

 	
  

 
	
 Section 601.

 	
 Certain
 Rights of Trustee

 	
  

 	
 51

 
	
  

 	
  

 	
  

 	
  

 
	
 Section 602.

 	
 Notice of
 Defaults

 	
  

 	
 53

 
	
  

 	
  

 	
  

 	
  

 
	
 Section 603.

 	
 Not
 Responsible for Recitals or Issuance of Securities

 	
  

 	
 53

 
	
  

 	
  

 	
  

 	
  

 
	
 Section 604.

 	
 May Hold
 Securities

 	
  

 	
 53

 
	
  

 	
  

 	
  

 	
  

 
	
 Section 605.

 	
 Money Held
 in Trust

 	
  

 	
 54

 

iii

	
  

 	
  

 	
  

 	
  

 
	
 Section 606.

 	
 Compensation
 and Reimbursement

 	
  

 	
 54

 
	
  

 	
  

 	
  

 	
  

 
	
 Section 607.

 	
 Corporate Trustee
 Required; Eligibility

 	
  

 	
 55

 
	
  

 	
  

 	
  

 	
  

 
	
 Section 608.

 	
 Resignation
 and Removal; Appointment of Successor

 	
  

 	
 55

 
	
  

 	
  

 	
  

 	
  

 
	
 Section 609.

 	
 Acceptance
 of Appointment by Successor

 	
  

 	
 56

 
	
  

 	
  

 	
  

 	
  

 
	
 Section 610.

 	
 Merger,
 Conversion, Consolidation or Succession to Business

 	
  

 	
 58

 
	
  

 	
  

 	
  

 	
  

 
	
 Section 611.

 	
 Appointment
 of Authenticating Agent

 	
  

 	
 58

 
	
  

 	
  

 	
  

 	
  

 
	
 ARTICLE SEVEN

 
	
  

 	
  

 	
  

 	
  

 
	
 HOLDERS LISTS AND REPORTS BY TRUSTEE AND COMPANY

 
	
  

 	
  

 	
  

 	
  

 
	
 Section 701.

 	
 Company to
 Furnish Trustee Names and Addresses of Holders

 	
  

 	
 60

 
	
  

 	
  

 	
  

 	
  

 
	
 Section 702.

 	
 Preservation
 of Information; Communications to Holders

 	
  

 	
 60

 
	
  

 	
  

 	
  

 	
  

 
	
 Section 703.

 	
 Reports by
 Trustee

 	
  

 	
 61

 
	
  

 	
  

 	
  

 	
  

 
	
 Section 704.

 	
 Reports by
 Company

 	
  

 	
 61

 
	
  

 	
  

 	
  

 	
  

 
	
 ARTICLE EIGHT

 
	
  

 	
  

 	
  

 	
  

 
	
 CONSOLIDATION, MERGER AND SALES

 
	
  

 	
  

 	
  

 	
  

 
	
 Section 801.

 	
 Company
 May Consolidate, Etc., Only on Certain Terms

 	
  

 	
 62

 
	
  

 	
  

 	
  

 	
  

 
	
 Section 802.

 	
 Successor
 Person Substituted for Company

 	
  

 	
 62

 
	
  

 	
  

 	
  

 	
  

 
	
 ARTICLE NINE

 	
  

 
	
  

 	
  

 	
  

 	
  

 
	
 SUPPLEMENTAL INDENTURES

 
	
  

 	
  

 	
  

 	
  

 
	
 Section 901.

 	
 Supplemental
 Indentures without Consent of Holders

 	
  

 	
 63

 
	
  

 	
  

 	
  

 	
  

 
	
 Section 902.

 	
 Supplemental
 Indentures with Consent of Holders

 	
  

 	
 64

 
	
  

 	
  

 	
  

 	
  

 
	
 Section 903.

 	
 Execution of
 Supplemental Indentures

 	
  

 	
 66

 
	
  

 	
  

 	
  

 	
  

 
	
 Section 904.

 	
 Effect of
 Supplemental Indentures

 	
  

 	
 66

 
	
  

 	
  

 	
  

 	
  

 
	
 Section 905.

 	
 Reference in
 Securities to Supplemental Indentures

 	
  

 	
 66

 
	
  

 	
  

 	
  

 	
  

 
	
 Section 906.

 	
 Conformity
 with Trust Indenture Act

 	
  

 	
 66

 

iv

	
  

 	
  

 	
  

 	
  

 
	
 ARTICLE TEN

 
	
  

 	
  

 	
  

 	
  

 
	
 COVENANTS

 
	
  

 	
  

 	
  

 	
  

 
	
 Section
 1001.

 	
 Payment of
 Principal, Premium, Interest and Additional Amounts

 	
  

 	
 67

 
	
  

 	
  

 	
  

 	
  

 
	
 Section
 1002.

 	
 Maintenance
 of Office or Agency

 	
  

 	
 67

 
	
  

 	
  

 	
  

 	
  

 
	
 Section
 1003.

 	
 Money for
 Securities Payments to Be Held in Trust

 	
  

 	
 68

 
	
  

 	
  

 	
  

 	
  

 
	
 Section
 1004.

 	
 Additional
 Amounts

 	
  

 	
 70

 
	
  

 	
  

 	
  

 	
  

 
	
 Section
 1005.

 	
 Legal
 Existence

 	
  

 	
 70

 
	
  

 	
  

 	
  

 	
  

 
	
 Section
 1006.

 	
 Waiver of
 Certain Covenants

 	
  

 	
 70

 
	
  

 	
  

 	
  

 	
  

 
	
 Section
 1007.

 	
 Company
 Statement as to Compliance

 	
  

 	
 70

 
	
  

 	
  

 	
  

 	
  

 
	
 Section
 1008.

 	
 Calculation
 of Original Issue Discount

 	
  

 	
 71

 
	
  

 	
  

 	
  

 	
  

 
	
 ARTICLE ELEVEN

 
	
  

 	
  

 	
  

 	
  

 
	
 REDEMPTION OF SECURITIES

 
	
  

 	
  

 	
  

 	
  

 
	
 Section
 1101.

 	
 Applicability
 of Article

 	
  

 	
 71

 
	
  

 	
  

 	
  

 	
  

 
	
 Section
 1102.

 	
 Election to
 Redeem; Notice to Trustee

 	
  

 	
 71

 
	
  

 	
  

 	
  

 	
  

 
	
 Section
 1103.

 	
 Selection by
 Trustee of Securities to be Redeemed

 	
  

 	
 71

 
	
  

 	
  

 	
  

 	
  

 
	
 Section
 1104.

 	
 Notice of
 Redemption

 	
  

 	
 72

 
	
  

 	
  

 	
  

 	
  

 
	
 Section
 1105.

 	
 Deposit of
 Redemption Price

 	
  

 	
 74

 
	
  

 	
  

 	
  

 	
  

 
	
 Section
 1106.

 	
 Securities
 Payable on Redemption Date

 	
  

 	
 74

 
	
  

 	
  

 	
  

 	
  

 
	
 Section
 1107.

 	
 Securities
 Redeemed in Part

 	
  

 	
 75

 
	
  

 	
  

 	
  

 	
  

 
	
 ARTICLE TWELVE

 
	
  

 	
  

 	
  

 	
  

 
	
 SINKING FUNDS

 
	
  

 	
  

 	
  

 	
  

 
	
 Section
 1201.

 	
 Applicability
 of Article

 	
  

 	
 75

 
	
  

 	
  

 	
  

 	
  

 
	
 Section
 1202.

 	
 Satisfaction
 of Sinking Fund Payments with Securities

 	
  

 	
 76

 
	
  

 	
  

 	
  

 	
  

 
	
 Section
 1203.

 	
 Redemption
 of Securities for Sinking Fund

 	
  

 	
 76

 

v

	
  

 	
  

 	
  

 	
  

 
	
 ARTICLE THIRTEEN

 
	
  

 	
  

 	
  

 	
  

 
	
 REPAYMENT AT THE OPTION OF HOLDERS

 
	
  

 	
  

 	
  

 	
  

 
	
 Section
 1301.

 	
 Applicability
 of Article

 	
  

 	
 77

 
	
  

 	
  

 	
  

 	
  

 
	
 ARTICLE FOURTEEN

 
	
  

 	
  

 	
  

 	
  

 
	
 SECURITIES IN FOREIGN CURRENCIES

 
	
  

 	
  

 	
  

 	
  

 
	
 Section
 1401.

 	
 Applicability
 of Article

 	
  

 	
 77

 
	
  

 	
  

 	
  

 	
  

 
	
 ARTICLE FIFTEEN

 
	
  

 	
  

 	
  

 	
  

 
	
 MEETINGS OF HOLDERS OF SECURITIES

 
	
  

 	
  

 	
  

 	
  

 
	
 Section
 1501.

 	
 Purposes for
 Which Meetings May Be Called

 	
  

 	
 78

 
	
  

 	
  

 	
  

 	
  

 
	
 Section
 1502.

 	
 Call, Notice
 and Place of Meetings

 	
  

 	
 78

 
	
  

 	
  

 	
  

 	
  

 
	
 Section
 1503.

 	
 Persons
 Entitled to Vote at Meetings

 	
  

 	
 78

 
	
  

 	
  

 	
  

 	
  

 
	
 Section
 1504.

 	
 Quorum;
 Action

 	
  

 	
 79

 
	
  

 	
  

 	
  

 	
  

 
	
 Section
 1505.

 	
 Determination
 of Voting Rights; Conduct and Adjournment of Meetings

 	
  

 	
 79

 
	
  

 	
  

 	
  

 	
  

 
	
 Section
 1506.

 	
 Counting
 Votes and Recording Action of Meetings

 	
  

 	
 80

 
	
  

 	
  

 	
  

 	
  

 
	
 ARTICLE SIXTEEN

 
	
  

 	
  

 	
  

 	
  

 
	
 SECURITY

 
	
  

 	
  

 	
  

 	
  

 
	
 Section
 1601.

 	
 Security

 	
  

 	
 81

 

vi

          INDENTURE,
dated as of February 12, 2010 (the “Indenture”), between Annaly Capital
Management, Inc., a Maryland corporation (hereinafter called the “Company”),
having its principal executive office located at 1211 Avenue of the Americas,
Suite 2902, New York, New York 10036, and Wells Fargo Bank, National
Association, a national banking association duly organized and existing under
the laws of the United States of America (hereinafter called the “Trustee”).

RECITALS

          The
Company has duly authorized the execution and delivery of this Indenture to
provide for the issuance from time to time of senior unsecured and secured debentures, notes or other evidences of
indebtedness (hereinafter called the “Securities”), unlimited as to principal
amount, to bear such rates of interest, to mature at such time or times, to be
issued in one or more series and to have such other provisions as shall be
fixed as hereinafter provided.

          The
Company has duly authorized the execution and delivery of this Indenture. All
things necessary to make this Indenture a valid agreement of the Company, in
accordance with its terms, have been done.

          This
Indenture is subject to the provisions of the Trust Indenture Act of 1939, as
amended, and the rules and regulations of the Securities and Exchange
Commission promulgated thereunder that are required to be part of this
Indenture and, to the extent applicable, shall be governed by such provisions.

          NOW,
THEREFORE, THIS INDENTURE WITNESSETH:

          For
and in consideration of the premises and the purchase of the Securities by the
Holders (as herein defined) thereof, it is mutually covenanted and agreed, for
the equal and proportionate benefit of all Holders of the Securities or of any
series thereof and any Coupons (as herein defined) as follows:

ARTICLE ONE

DEFINITIONS AND OTHER PROVISIONS OF GENERAL
APPLICATION

          Section 101. Definitions.  

          Except
as otherwise expressly provided in or pursuant to this Indenture or unless the
context otherwise requires, for all purposes of this Indenture:

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

          (2)
all other terms used herein which are defined in the Trust Indenture Act either
directly or by reference therein, have the meanings assigned to them therein;

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

          (4)
the words “herein”, “hereof”, “hereto” 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;

          (5)
the word “or” is always used inclusively (for example, the phrase “A or B”
means “A or B or both”, not “either A or B but not both”);

          (6)
provisions apply to successive events and transactions;

          (7)
the term “merger” includes a statutory share exchange and the terms “merge” and
“merged” have correlative meanings;

          (8)
the masculine gender includes the feminine and the neuter; and

          (9)
references to agreements and other instruments include subsequent amendments
and supplements thereto.

          Certain
terms used principally in certain Articles hereof are defined in those
Articles.

          Except
as otherwise expressly provided in or pursuant to this Indenture or the context
otherwise requires, for all purposes of this Indenture, references to the
conversion or exchange of any Securities for or into other securities (other
than Securities of the same series) or property shall not include the exchange
of Securities of any series for other Securities of the same series.

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

          “Additional
Amounts” means any additional amounts which are required by this Indenture or
by any Security, or by the terms of any Security established pursuant to
Section 301, under circumstances specified herein or therein, to be paid by the
Company in respect of certain

1

taxes, duties,
levies, imposts, assessments or other governmental charges imposed on Holders
specified herein or therein.

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

          “Authenticating
Agent” means any Person authorized by the Trustee pursuant to Section 611 to
act on behalf of the Trustee to authenticate Securities of one or more series.

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

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

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

          “Board
of Directors” means the board of directors of the Company or any committee of
that board duly authorized to act generally or in any particular respect for
the Company hereunder. The term “board of directors” means the board of
directors of the Company and does not include committees of the board of
directors.

          “Board
Resolution” means a copy of one or more resolutions, 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, delivered to the Trustee.

          “Business
Day” means, unless otherwise specified with respect to the Securities of any
series pursuant to Section 301, any day other than a Saturday, Sunday or other
day on which banking institutions in The City of New York are authorized or
obligated by law, regulation or executive order to close; provided that such
term shall mean, when used with respect to any payment of principal of, or
premium or interest, if any, on, or Additional Amounts with respect to, the
Securities of any series to be made at any Place of Payment for such
Securities, unless otherwise specified pursuant to Section 301 with respect to
such Securities, any day other than a Saturday, Sunday or other day on which
banking institutions in such Place of Payment are authorized or obligated by
law, regulation or executive order to close.

2

          “Commission”
means the Securities and Exchange Commission, as from time to time constituted,
or, if at any time after the execution of this Indenture 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.

          “Common
Shares” means the common shares of the Company as such common shares exist on
the date of this Indenture or shares of any class or classes resulting from any
reclassification or reclassifications thereof and which have no preference in
respect of dividends or similar distributions or of amounts payable in the
event of any voluntary or involuntary liquidation, dissolution or winding up of
the Company and which are not subject to redemption by the Company; provided that, solely in the case of
any Securities that are convertible into Common Shares, unless otherwise
provided pursuant to Section 301 with respect to the Securities of such series,
if at any time there shall be more than one such resulting class, the shares of
each such class then so issuable on conversion of such Securities shall be
substantially in the proportion which the total number of shares of such class
resulting from all such reclassifications bears to the total number of shares
of all such classes resulting from all such reclassifications.

          “Company”
means the Person named as the “Company” in the first paragraph of this
instrument until a successor Person shall have become such pursuant to the
applicable provisions of this Indenture, and thereafter “Company” shall mean
such successor Person and any other obligor upon the Securities.

          “Company
Request” and “Company Order” mean, respectively, a written request or order, as
the case may be, signed in the name of the Company by the Chairman, the Chief
Executive Officer, the President, the Chief Financial Officer or a Vice
President and by the Treasurer, an Assistant Treasurer, the Secretary or an
Assistant Secretary of the Company, and delivered to the Trustee.

          “Conversion
Event” means (i) with respect to any Foreign Currency other than the Euro,
the cessation of use of such Foreign Currency both by the government of the
country or the confederation which issued such Foreign Currency and for the
settlement of transactions by a central bank or other public institutions of or
within the international banking community or (ii) in the case of the
Euro, the cessation of use of the Euro both within the European Monetary System
and for the settlement of transactions by public institutions of or within the
European Union.

          “Corporate
Trust Office” means the designated corporate trust office of the Trustee at
which at any particular time its corporate trust business shall be
administered, which office at the date of this Indenture is located at 45
Broadway, 14th Floor, New York, New York 10006, Attention: Corporate
Trust Services.

          The
term “Corporation” includes corporations, partnerships, associations, limited
liability companies and other companies, and business trusts. The term
“corporation” means a corporation and does not include partnerships,
associations, limited liability companies or other companies or business
trusts.

3

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

          “Currency”,
with respect to any payment, deposit or other transfer in respect of the
principal of or any premium or interest on or any Additional Amounts with
respect to any Security, means Dollars or the Foreign Currency, as the case may
be, in which such payment, deposit or other transfer is required to be made by
or pursuant to the terms hereof or such Security and, with respect to any other
payment, deposit or transfer pursuant to or contemplated by the terms hereof or
such Security, means Dollars.

          “CUSIP
number” means the alphanumeric designation assigned to a Security by
Standard & Poor’s, CUSIP Service Bureau.

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

          “Depository”
means, with respect to any Security issuable or issued in the form of one or
more global Securities, the Person designated as depository by the Company in
or pursuant to this Indenture, and, unless otherwise provided with respect to
any Security, any successor to such Person. If at any time there is more than
one such Person, “Depository” shall mean, with respect to any Securities, the
depository which has been appointed with respect to such Securities.

          “Dollars”
or “$” means a dollar or other equivalent unit of legal tender for payment of
public or private debts in the United States of America.

          “Euro”
means the currency introduced at the start of the third stage of European
economic and monetary union pursuant to the Treaty establishing European
Community, as amended by the Treaty on European Union.

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

          “European
Union” means the participating member states that adopt a single currency in
accordance with the Treaty establishing the European Community, as amended by
the Treaty on European Union.

          “Event
of Default” has the meaning specified in Section 501.

          “Exchange
Act” means the Securities Exchange Act of 1934, as amended, or any successor
thereto, in each case as amended from time to time.

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

          “GAAP”
and “generally accepted accounting principles” mean, unless otherwise specified
with respect to any series of Securities pursuant to Section 301, such
accounting principles as are generally accepted in the United States of America
as of the date or time of any computation required hereunder.

4

          “Government
Obligations” means securities which are (i) direct obligations of the
United States of America or the other government or governments in the
confederation which issued the Foreign Currency in which the principal of or
any premium or interest on the relevant Security or any Additional Amounts in
respect thereof shall be payable, in each case where the payment or payments
thereunder are supported by the full faith and credit of such government or
governments or (ii) obligations of a Person controlled or supervised by
and acting as an agency or instrumentality of the United States of America or
such other government or governments, in each case where the timely payment or
payments thereunder are unconditionally guaranteed as a full faith and credit
obligation by the United States of America or such other government or
governments, and which, in the case of (i) or (ii), are not callable or
redeemable at the option of the issuer or issuers thereof, and shall also
include a depository receipt issued by a bank or trust company as custodian
with respect to any such Government Obligation or a specific payment of
interest on or principal of or other amount with respect to any such Government
Obligation held by such custodian for the account of the holder of a depository
receipt, provided that (except as required by law) such custodian is not
authorized to make any deduction from the amount payable to the holder of such
depository receipt from any amount received by the custodian in respect of the
Government Obligation or the specific payment of interest on or principal of or
other amount with respect to the Government Obligation evidenced by such
depository receipt.

          “Holder”,
in the case of any Registered Security, means the Person in whose name such
Security is registered in the Security Register and, in the case of any Bearer
Security, means the bearer thereof and, in the case of any Coupon, means the
bearer thereof.

          “Indenture”
means this instrument as originally executed or as it may from time to time be
supplemented or amended by one or more indentures supplemental hereto entered
into pursuant to the applicable provisions hereof and, with respect to any
Security, by the terms and provisions of such Security and any Coupon appertaining
thereto established pursuant to Section 301 (as such terms and provisions may
be amended pursuant to the applicable provisions hereof), provided, however,
that, if at any time more than one Person is acting as Trustee under this
instrument, “Indenture” shall mean, with respect to any one or more series of
Securities for which such Person is Trustee, this instrument as originally
executed or as it may from time to time be supplemented or amended by one or
more indentures supplemental hereto entered into pursuant to the applicable
provisions hereof and shall include the terms of those particular series of
Securities for which such Person is Trustee established pursuant to Section
301, exclusive, however, of any provisions or terms which relate solely to
other series of Securities for which such Person is not Trustee, regardless of
when such terms or provisions were adopted.

          “Indexed
Security” means a Security the terms of which provide that the principal amount
thereof payable at Stated Maturity may be more or less than the principal face
amount thereof at original issuance.

          “interest”,
with respect to any Original Issue Discount Security which by its terms bears
interest only after Maturity, means interest payable after Maturity.

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

5

          “Judgment
Currency” has the meaning specified in Section 116.

          “Maturity”,
with respect to any Security, means the date on which the principal of such
Security or an installment of principal becomes due and payable as provided in
or pursuant to this Indenture or such Security, whether at the Stated Maturity
or by declaration of acceleration, upon redemption at the option of the
Company, upon repurchase or repayment at the option of the Holder or otherwise,
and includes a Redemption Date for such Security and a date fixed for the
repurchase or repayment of such Security at the option of the Holder.

          “New
York Banking Day” has the meaning specified in Section 116.

          “Non-recourse
Debt” means any indebtedness the terms of which provide that the claim for
repayment of such indebtedness by the holder thereof is limited solely to a
claim against the property or assets (including, without limitation, securities
or interests in securities) that secure such indebtedness; provided, however,
that any obligations or liabilities of the debtor or obligor or any other
person solely for indemnities, covenants or breaches of warranties,
representations or covenants or similar matters in respect of any indebtedness
will not prevent such indebtedness from constituting Non-recourse Debt.

          “Office”
or “Agency”, with respect to any Securities, means an office or agency of the
Company maintained or designated in a Place of Payment for such Securities
pursuant to Section 1002 or any other office or agency of the Company
maintained or designated for such Securities pursuant to Section 1002 or, to
the extent designated or required by Section 1002 in lieu of such office or
agency, the Corporate Trust Office of the Trustee.

          “Officers’
Certificate” means a certificate signed by the Chairman, the Chief Executive
Officer, the President, the Chief Financial Officer or a Vice President and by
the Treasurer, an Assistant Treasurer, the Secretary or an Assistant Secretary
of the Company, that complies with the requirements of
Section 314(e) of the Trust Indenture Act and is delivered to the Trustee.

          “Opinion
of Counsel” means a written opinion of counsel, who may be an employee of or
counsel for the Company or other counsel who shall be reasonably acceptable to
the Trustee, that, if required by the Trust Indenture Act, complies with the
requirements of Section 314(e) of the Trust Indenture Act.

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

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

	
  

 	
  

 	
  

 
	
  

 	
 (a)

 	
 any such
 Security theretofore cancelled by the Trustee or the Security Registrar or
 delivered to the Trustee or the Security Registrar for cancellation;

 

6

	
  

 	
  

 	
  

 
	
  

 	
 (b)

 	
 any such
 Security for whose payment at the Maturity thereof money in the necessary
 amount (or, to the extent that such Security is payable at such Maturity in
 Common Shares or other securities or property, Common Shares or such other
 securities or property in the necessary amount, together with, if applicable,
 cash in lieu of fractional shares or securities) has been theretofore
 deposited pursuant hereto (other than pursuant to Section 402) with the
 Trustee or any Paying Agent (other than the Company) in trust or set aside
 and segregated in trust by the Company (if the Company shall act as its own
 Paying Agent) for the Holders of such Securities and any Coupons appertaining
 thereto, provided that, if
 such Securities are to be redeemed, notice of such redemption has been duly
 given pursuant to this Indenture or provision therefor satisfactory to the
 Trustee has been made;

 
	
  

 	
  

 	
  

 
	
  

 	
 (c)

 	
 any such
 Security with respect to which the Company has effected defeasance or
 covenant defeasance pursuant to Section 402, except to the extent provided in
 Section 402;

 
	
  

 	
  

 	
  

 
	
  

 	
 (d)

 	
 any such
 Security which has been paid pursuant to Section 306 or in exchange for or in
 lieu of which other Securities have been authenticated and delivered pursuant
 to this Indenture, unless there shall have been presented to the Trustee
 proof satisfactory to it that such Security is held by a bona fide purchaser
 in whose hands such Security is a valid obligation of the Company; and

 
	
  

 	
  

 	
  

 
	
  

 	
 (e)

 	
 any such
 Security converted or exchanged as contemplated by this Indenture into Common
 Shares or other securities or property, if the terms of such Security provide
 for such conversion or exchange pursuant to Section 301;

 

provided, however,
that in determining whether the Holders of the requisite principal amount of
Outstanding Securities have given any request, demand, authorization,
direction, notice, consent or waiver hereunder or are present at a meeting of
Holders of Securities for quorum purposes, (i) the principal amount of an
Original Issue Discount Security that may be counted in making such
determination and that shall be deemed to be Outstanding for such purposes
shall be equal to the amount of the principal thereof that pursuant to the
terms of such Original Issue Discount Security would be declared (or shall have
been declared to be) due and payable upon a declaration of acceleration thereof
pursuant to Section 502 at the time of such determination, and (ii) the
principal amount of any Indexed Security that may be counted in making such
determination and that shall be deemed Outstanding for such purpose shall be
equal to the principal face amount of such Indexed Security at original
issuance, unless otherwise provided in or pursuant to this Indenture, and
(iii) the principal amount of a Security denominated in a Foreign Currency
that may be counted in making such determination and that shall be deemed Outstanding
for such purposes shall be the Dollar equivalent, determined on the date of
original issuance of such Security, of the principal amount (or, in the case of
an Original Issue Discount Security, the Dollar equivalent on the date of
original issuance of such Security of the amount determined as provided in
(i) above) of such Security, and (iv) Securities owned by the Company

7

or any other
obligor upon the Securities, or any Affiliate of the Company or such other
obligor shall be disregarded and deemed not to be Outstanding, except that, in
determining whether the Trustee shall be protected in making any such
determination or relying upon any such request, demand, authorization,
direction, notice, consent or waiver, only Securities which a Responsible
Officer of the Trustee actually knows to be so owned shall be so disregarded.
Securities so owned which shall have been pledged in good faith may be regarded
as Outstanding if the pledgee establishes to the satisfaction of the Trustee
(A) the pledgee’s right so to act with respect to such Securities and
(B) that the pledgee is not the Company or any other obligor upon the
Securities or any Coupons appertaining thereto or an Affiliate (other than a
Trust) of the Company or such other obligor.

          “Paying
Agent” means any Person authorized by the Company to pay the principal of, or
any premium or interest on, or any Additional Amounts with respect to, any
Security or any Coupon on behalf of the Company.

          “Person”
and “person” mean any individual, Corporation, joint venture, joint-stock
company, trust, unincorporated organization or government or any agency or
political subdivision thereof.

          “Place
of Payment”, with respect to any Security, means the place or places where the
principal of, or any premium or interest on, or any Additional Amounts with
respect to such Security are payable as provided in or pursuant to this
Indenture or such Security.

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

          “Redemption
Date”, with respect to any Security or portion thereof to be redeemed, means
the date fixed for such redemption by or pursuant to this Indenture or such
Security.

          “Redemption
Price”, with respect to any Security or portion thereof to be redeemed, means
the price at which it is to be redeemed as determined by or pursuant to this
Indenture or such Security.

          “Registered
Security” means any Security established pursuant to Section 201 which is
registered in the Security Register.

          “Regular
Record Date” for the interest payable on any Registered Security on any
Interest Payment Date therefor means the date, if any, specified in or pursuant
to this Indenture or such Security as the record date for the payment of such
interest.

          “Required
Currency” has the meaning specified in Section 116.

8

          “Responsible
Officer” shall mean, when used with respect to the Trustee, any officer within
the corporate trust department of the Trustee, including any vice president,
assistant vice president, trust officer or assistant trust officer or any other
officer of the Trustee who customarily performs functions similar to those
performed by the Persons who at the time shall be such officers, respectively,
or to whom any corporate trust matter is referred because of such person’s
knowledge of and familiarity with the particular subject and who shall have
direct responsibility for the administration of this Indenture.

          “Securities
Act” means the Securities Act of 1933, as amended, or any successor thereto, in
each case as amended from time to time.

          “Security”
or “Securities” means any note or notes, bond or bonds, debenture or
debentures, or any other evidences of indebtedness, as the case may be,
authenticated and delivered under this Indenture; provided, however, that, if at any time there is more than one
Person acting as Trustee under this Indenture, “Securities”, with respect to
any such Person, shall mean Securities authenticated and delivered under this
Indenture, exclusive, however, of Securities of any series as to which such
Person is not Trustee.

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

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

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

          “Stated
Maturity”, with respect to any Security or any installment of principal thereof
or interest thereon or any Additional Amounts with respect thereto, means the
date established by or pursuant to this Indenture or such Security as the fixed
date on which the principal of such Security or such installment of principal or
interest is, or such Additional Amounts are, due and payable.

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

          “Trust
Indenture Act” means the Trust Indenture Act of 1939, as amended, and any
reference herein to the Trust Indenture Act or a particular provision thereof
shall mean such Act or provision, as the case may be, as amended or replaced
from time to time or as supplemented from time to time by rules or
regulations adopted by the Commission under or in furtherance of the purposes
of such Act or provision, as the case may be.

9

          “Trustee”
means the Person named as the “Trustee” in the first paragraph of this
instrument until a successor Trustee shall have become such with respect to one
or more series of Securities pursuant to the applicable provisions of this
Indenture, and thereafter “Trustee” shall mean each Person who is then a
Trustee hereunder; provided, however,
that if at any time there is more than one such Person, “Trustee” shall mean
each such Person and as used with respect to the Securities of any series shall
mean the Trustee with respect to the Securities of such series.

          “United
States”, means the United States of America (including the states thereof and
the District of Columbia), its territories, its possessions and other areas
subject to its jurisdiction; and the term “United States of America” means the
United States of America.

          “United
States Alien”, except as otherwise provided in or pursuant to this Indenture or
any Security, means any Person who, for United States Federal income tax
purposes, is a foreign corporation, a non-resident alien individual, a
non-resident alien fiduciary of a foreign estate or trust, or a foreign
partnership one or more of the members of which is, for United States Federal
income tax purposes, a foreign corporation, a non-resident alien individual or
a non-resident alien fiduciary of a foreign estate or trust.

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

          Section
102. Compliance Certificates and Opinions.  

          Except
as otherwise expressly provided in or pursuant to this Indenture, upon any
application or request by the Company to the Trustee to take any action under
any provision of this Indenture, the Company shall furnish to the Trustee an
Officers’ Certificate stating that all conditions precedent, if any, provided
for in this Indenture relating to the proposed action have been complied with
and an Opinion of Counsel stating that, in the opinion of such counsel, all
such conditions precedent, if any, have been complied with, except that in the
case of any such application or request as to which the furnishing of such
documents or any of them is specifically required by any provision of this
Indenture relating to such particular application or request, no additional
certificate or opinion need be furnished.

          Section
103. Form of Documents Delivered to Trustee.  

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

          Any
certificate or opinion of an officer of the Company may be based, insofar as it
relates to legal matters, upon an Opinion of Counsel, unless such officer
knows, or in the exercise of reasonable care should know, that the opinion with
respect to the matters upon which his certificate or opinion is based is
erroneous. Any such Opinion of Counsel may be based, insofar as it relates to
factual matters, upon a certificate or opinion of, or representations by, an
officer or

10

officers of
the Company, a governmental official or officers or any other Person or Persons
stating that the information with respect to such factual matters is in the
possession of the Company unless such counsel knows, or in the exercise of
reasonable care should know, that the certificate, opinion or representations
with respect to such matters are erroneous.

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

          Section
104. Acts of Holders.  

          (1)
Any request, demand, authorization, direction, notice, consent, waiver or other
action provided by or pursuant to this Indenture to be made, given or taken by
Holders may be embodied in and evidenced by one or more instruments of
substantially similar tenor signed by such Holders in person or by an agent
duly appointed in writing. If, but only if, Securities of a series are issuable
as Bearer Securities, any request, demand, authorization, direction, notice,
consent, waiver or other action provided in or pursuant to this Indenture to be
made, given or taken by Holders of Securities of such series may,
alternatively, be embodied in and evidenced by the record of Holders of
Securities of such series voting in favor thereof, either in person or by
proxies duly appointed in writing, at any meeting of Holders of Securities of
such series duly called and held in accordance with the provisions of Article
Fifteen, or a combination of such instruments and any such record. Except as
herein otherwise expressly provided, such action shall become effective when
such instrument or instruments or record or both are delivered to the Trustee
and, where it is hereby expressly required, to the Company. Such instrument or
instruments and any such record (and the action embodied therein and evidenced
thereby) are herein sometimes referred to as the “Act” of the Holders signing
such instrument or instruments or so voting at any such meeting. Proof of
execution of any such instrument or of a writing appointing any such agent, or
of the holding by any Person of a Security, shall be sufficient for any purpose
of this Indenture and (subject to Section 315 of the Trust Indenture Act)
conclusive in favor of the Trustee and the Company and any agent of the Trustee
or the Company, if made in the manner provided in this Section 104. The record
of any meeting of Holders of Securities shall be proved in the manner provided
in Section 1506.

          Without
limiting the generality of this Section 104, unless otherwise provided in or
pursuant to this Indenture, a Holder, including a Depository that is a Holder
of a global Security, may make, give or take, by a proxy or proxies, duly
appointed in writing, any request, demand, authorization, direction, notice,
consent, waiver or other Act provided in or pursuant to this Indenture or the
Securities to be made, given or taken by Holders, and a Depository that is a
Holder of a global Security may provide its proxy or proxies to the beneficial
owners of interests in any such global Security through such Depository’s
standing instructions and customary practices.

          (2)
The fact and date of the execution by any Person of any such instrument or
writing may be proved in any reasonable manner which the Trustee deems
sufficient and in accordance with such reasonable rules as the Trustee may
determine; and the Trustee may in any instance require further proof with
respect to any of the matters referred to in this Section 104.

11

          (3)
The ownership, principal amount and serial numbers of Registered Securities
held by any Person, and the date of the commencement and the date of the
termination of holding the same, shall be proved by the Security Register.

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

          (5)
If the Company shall solicit from the Holders of any Registered Securities any
request, demand, authorization, direction, notice, consent, waiver or other
Act, the Company may at its option (but is not obligated to), by Board
Resolution fix in advance a record date for the determination of Holders of
Registered Securities entitled to give such request, demand, authorization,
direction, notice, consent, waiver or other Act. If such a record date is
fixed, such request, demand, authorization, direction, notice, consent, waiver
or other Act may be given before or after such record date, but only the
Holders of Registered Securities of record at the close of business on such
record date shall be deemed to be Holders for the purpose of determining
whether Holders of the requisite proportion of Outstanding Securities have
authorized or agreed or consented to such request, demand, authorization,
direction, notice, consent, waiver or other Act, and for that purpose the
Outstanding Securities shall be computed as of such record date; provided that
no such authorization, agreement or consent by the Holders of Registered
Securities 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.

          (6)
Any request, demand, authorization, direction, notice, consent, waiver or other
Act by the Holder of any Security shall bind every future Holder of the same
Security and the Holder of every Security issued upon the registration of
transfer thereof or in exchange therefor or in lieu thereof in respect of
anything done or suffered to be done by the Trustee, any Security Registrar,
any Paying Agent or the Company in reliance thereon, whether or not notation of
such Act is made upon such Security.

12

          Section
105. Notices, etc., to Trustee and Company.  

          Any
request, demand, authorization, direction, notice, consent, waiver or other Act
of Holders or other document provided or permitted by this Indenture to be made
upon, given or furnished to, or filed with,

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

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

          Section
106. Notice to Holders of Securities; Waiver.  

          Except
as otherwise expressly provided in or pursuant to this Indenture, where this
Indenture provides for notice to Holders of Securities of any event,

          (1)
such notice shall be sufficiently given to Holders of Registered Securities if
in writing and mailed, first-class postage prepaid, to each Holder of a
Registered Security affected by such event, at his address as it appears in the
Security Register, not later than the latest date, and not earlier than the
earliest date, prescribed for the giving of such notice; and

          (2)
such notice shall be sufficiently given to Holders of Bearer Securities, if
any, if published in an Authorized Newspaper in The City of New York and, if
such Securities are then listed on any stock exchange outside the United
States, in an Authorized Newspaper in such city as the Company shall advise the
Trustee that such stock exchange so requires, on a Business Day at least twice,
the first such publication to be not earlier than the earliest date and the
second such publication not later than the latest date prescribed for the
giving of such notice.

          In
any case where notice to Holders of Registered Securities is given by mail,
neither the failure to mail such notice, nor any defect in any notice so
mailed, to any particular Holder of a Registered Security shall affect the
sufficiency of such notice with respect to other Holders of Registered
Securities or the sufficiency of any notice to Holders of Bearer Securities
given as provided herein. Any notice which is mailed in the manner herein
provided shall be conclusively presumed to have been duly given or provided. In
the case by reason of the suspension of regular mail service or by reason of
any other cause it shall be impracticable to give such notice by mail, then
such notification as shall be made with the approval of the Trustee shall
constitute a sufficient notification for every purpose hereunder.

          In
case by reason of the suspension of publication of any Authorized Newspaper or
Authorized Newspapers or by reason of any other cause it shall be impracticable
to publish any notice to Holders of Bearer Securities as provided above, then
such notification to Holders of Bearer Securities as shall be given with the
approval of the Trustee shall constitute sufficient notice to such Holders for
every purpose hereunder. Neither failure to give notice by publication to
Holders of Bearer Securities as provided above, nor any defect in any notice so
published,

13

shall affect
the sufficiency of any notice mailed to Holders of Registered Securities as
provided above.

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

          Anything
herein to the contrary notwithstanding, unless otherwise expressly stated in
this Indenture or pursuant to Section 301 with respect to the Securities of any
series, if a Depository or its nominee is the Holder of any Security, then any
notice given to such Depository or its nominee, as the case may be, in respect
of such Security may be given by the Company or the Trustee electronically in
accordance with the procedures of such Depository as in effect from time to
time in lieu of giving notice to such Depository or such nominee, as the case
may be, by mail and all references in this Indenture to the mailing of any such
notice shall be deemed to mean, solely as concerns the notice given by the
Company or the Trustee to such Depository or its nominee, as the case may be,
the electronic transmission of such notice as aforesaid, mutatis mutandis.

          Section
107. Language of Notices.  

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

          Section
108. Conflict with Trust Indenture Act.  

          If
any provision hereof limits, qualifies or conflicts with any duties under any
required provision of the Trust Indenture Act imposed hereon by
Section 318(c) thereof, such required provision shall control.

          Section
109. Effect of Headings and Table of Contents.  

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

          Section
110. Successors and Assigns.  

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

          Section
111. Separability Clause.  

          In
case any provision in this Indenture, any Security or any Coupon shall be
invalid, illegal or unenforceable, the validity, legality and enforceability of
the remaining provisions shall not, to the fullest extent permitted by law, in
any way be affected or impaired thereby.

14

          Section
112. Benefits of Indenture.  

          Nothing
in this Indenture, any Security or any Coupon, express or implied, shall give
to any Person, other than the parties hereto, any Security Registrar, any
Paying Agent and their successors hereunder and the Holders of Securities or
Coupons, any benefit or any legal or equitable right, remedy or claim under
this Indenture.

          Section
113. Governing Law; Waiver of Jury Trial; Consent to
Jurisdiction and Service.  

          This
Indenture, the Securities and any Coupons shall be governed by and construed in
accordance with the laws of the State of New York applicable to agreements made
or instruments entered into and, in each case, performed in said State, without
regard to conflicts of laws or principles thereof.

          EACH
OF THE COMPANY AND THE TRUSTEE HEREBY IRREVOCABLY WAIVES, TO THE FULLEST EXTENT
PERMITTED BY APPLICABLE LAW, ANY AND ALL RIGHT TO TRIAL BY JURY IN ANY LEGAL
PROCEEDING ARISING OUT OF OR RELATING TO THIS INDENTURE, THE SECURITIES, THE
COUPONS OR THE TRANSACTION CONTEMPLATED HEREBY.

          To
the fullest extent permitted by applicable law, the Company hereby irrevocably
submits to the jurisdiction of any federal or state court located in the
Borough of Manhattan in The City of New York, New York in any suit, action or
proceeding based on or arising out of or relating to this Indenture or any
Securities and irrevocably agrees that all claims in respect of such suit or
proceeding may be determined in any such court. The Company irrevocably waives,
to the fullest extent permitted by law, any objection which it may have to the
laying of the venue of any such suit, action or proceeding brought in an
inconvenient forum. The Company agrees that final judgment in any such suit,
action or proceeding brought in such a court shall be conclusive and binding
upon the Company, and may be enforced in any courts to the jurisdiction of
which the Company is subject by a suit upon such judgment, provided, that
service of process is effected upon the Company in the manner specified herein
or as otherwise permitted by law. The Company hereby irrevocably designates and
appoints R. Nicholas Singh, General Counsel,
Annaly Capital Management, Inc., 1211 Avenue of the Americas, Suite
2902, New York, NY 10036 (the “Process Agent”) as its authorized agent for
purposes of this section, it being understood that the designation and
appointment of the Process Agent as such authorized agent shall become
effective immediately without any further action on the part of the Company.
The Company further agrees that service of process upon the Process Agent and
written notice of said service to the Company, mailed by prepaid registered
first class mail or delivered to the Process Agent at its principal office,
shall be deemed in every respect effective service of process upon the Company,
in any such suit or proceeding. The Company further agrees to take any and all
action, including the execution and filing of any and all such documents and
instruments as may be necessary, to continue such designation and appointment
of the Process Agent in full force and effect so long as the Company, has any
outstanding obligations under this Indenture. To the extent the Company has or
hereafter may acquire any immunity from jurisdiction of any court or from any
legal process (whether through service of notice, attachment prior to judgment,
attachment in aid of execution, executor or otherwise) with respect to itself
or its property, the 

15

Company hereby
irrevocably waives such immunity in respect of its obligations under this
Indenture to the extent permitted by law.

          Section
114. Legal Holidays.  

          Unless
otherwise specified in or pursuant to this Indenture or any Securities, in any
case where any Interest Payment Date, Stated Maturity or Maturity of, or any
other day on which a payment is due with respect to, any Security shall be a
day which is not a Business Day at any Place of Payment, then (notwithstanding
any other provision of this Indenture, any Security or any Coupon other than a
provision in any Security or Coupon or in the Board Resolution, Officers’
Certificate or supplemental indenture establishing the terms of any Security
that specifically states that such provision shall apply in lieu hereof)
payment need not be made at such Place of Payment on such date, but such
payment may be made on the next succeeding day that is a Business Day at such
Place of Payment with the same force and effect as if made on the Interest
Payment Date, at the Stated Maturity or Maturity or on any such other payment
date, as the case may be, and no interest shall accrue on the amount payable on
such date or at such time for the period from and after such Interest Payment
Date, Stated Maturity, Maturity or other payment date, as the case may be, to
the next succeeding Business Day.

          Section
115. Counterparts.  

          This
Indenture may be executed in several counterparts, each of which shall be an
original and all of which shall constitute but one and the same instrument. The
exchange of copies of this Indenture and of signature pages by facsimile or PDF
transmission shall constitute effective execution and delivery of this
Indenture as to the parties hereto and may be used in lieu of the original
Indenture for all purposes. Signatures of the parties hereto transmitted by
facsimile or PDF shall be deemed to be their original signatures for all
purposes.

          Section
116. Judgment Currency.  

          The
Company agrees, to the fullest extent that it may effectively do so under
applicable law, that (a) if for the purpose of obtaining judgment against
it in any court, it is necessary to convert the sum due in respect of the
principal of, or premium or interest, if any, or Additional Amounts on the
Securities of any series (the “Required Currency”) into a currency in which a
judgment will be rendered (the “Judgment Currency”), the rate of exchange used
shall be the rate at which in accordance with normal banking procedures the Trustee
could purchase in The City of New York the Required Currency with the Judgment
Currency on the New York Banking Day preceding that on which a final
unappealable judgment is given and (b) its obligations under this
Indenture to make payments in the Required Currency (i) shall not be
discharged or satisfied by any tender, or any recovery pursuant to any judgment
(whether or not entered in accordance with clause (a)), in any currency other
than the Required Currency, except to the extent that such tender or recovery
shall result in the actual receipt, by the payee, of the full amount of the
Required Currency expressed to be payable in respect of such payments,
(ii) shall be enforceable as an alternative or additional cause of action
for the purpose of recovering in the Required Currency the amount, if any, by
which such actual receipt shall fall short of the full amount of the Required
Currency so expressed to be payable and (iii) shall not be affected by
judgment being obtained for any other sum due under this Indenture. For
purposes of the foregoing, “New 

16

York Banking
Day” means any day except a Saturday, Sunday or a legal holiday in The City of
New York or a day on which banking institutions in The City of New York are
authorized or obligated by law, regulation or executive order to be closed. The
provisions of this Section 116 shall not be applicable with respect to any
payment due on a Security which is payable in Dollars.

          Section
117. Extension of Payment Dates.  

          In
the event that (i) the terms of any Security or Coupon appertaining
thereto established in or pursuant to this Indenture permit the Company or any
Holder thereof to extend the date on which any payment of principal of, or
premium, if any, or interest, if any, on, or Additional Amounts, if any, with
respect to such Security or Coupon is due and payable and (ii) the due
date for any such payment shall have been so extended, then all references
herein to the Stated Maturity of such payment (and all references of like import)
shall be deemed to refer to the date as so extended.

          Section
118. Immunity of Shareholders, Directors, Officers and
Agents of the Company.  

          No
recourse under or upon any obligation, covenant or agreement contained in this
Indenture or in any Security, or because of any indebtedness evidenced thereby,
or for any claim based thereon or otherwise in respect thereof, shall be had
against any past, present or future shareholder, incorporator, employee,
officer or director, as such, of the Company or any predecessor or successor to
the Company, either directly or through the Company or any such predecessor or
successor, under any rule of law, statute or constitutional provision or
by the enforcement of any assessment or by any legal or equitable proceeding or
otherwise, all such liability being expressly waived and released by the
acceptance of the Securities by the Holders and as part of the consideration
for the issue of the Securities; it being expressly understood that, without
limitation to the foregoing, this Indenture and the Securities and the
obligations created hereunder and thereunder are solely corporate, limited
liability company, partnership, limited partnership or similar obligations, as
the case may be, of the Company and that no such personal liability whatever
shall attach to, or is or shall be incurred by, any past, present or future
shareholder, incorporator, employee, officer or director, as such, of the
Company or any of its predecessors or successors, 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
Security or implied herefrom or therefrom and that any and all such personal
liability of every type 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 past, present or future shareholder, incorporator, employee, 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 Security or implied herefrom or
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 the
Securities. As used in this Section 118, all references to “shareholders” shall
be deemed to mean, with respect to any Person, any past, present or future
holder or owner of an equity interest in such Person, including, without
limitation, owners or holders of capital stock, limited or general partnership
interests and limited liability company interests.

17

          Section
119. Force Majeure.  

          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.

          Section
120. U.S.A. Patriot Act.  

          The
parties hereto acknowledge that in accordance with Section 326 of the U.S.A.
Patriot Act, the Trustee, like all financial institutions and in order to help
fight the funding of terrorism and money laundering, is required to obtain,
verify, and record information that identifies each person or legal entity that
establishes a relationship or opens an account with the Trustee. The parties to
this Indenture agree that they will provide the Trustee with such information
as it may request in order for the Trustee to satisfy the requirements of the
U.S.A. Patriot Act.

ARTICLE TWO

SECURITIES FORMS

          Section
201. Forms Generally.  

          Each
Registered Security, Bearer Security, Coupon and temporary or permanent global
Security issued pursuant to this Indenture shall be in the form established by
or pursuant to a Board Resolution and set forth in an Officers’ Certificate, or
established in one or more indentures supplemental hereto, shall have such
appropriate insertions, omissions, substitutions and other variations as are
required or permitted by or pursuant to this Indenture or any indenture
supplemental hereto and may have such letters, numbers or other marks of
identification and such legends or endorsements placed thereon as may,
consistently herewith, be determined by any officer of the Company executing
such Security or Coupon as evidenced by the execution of such Security or
Coupon.

          Unless
otherwise provided in or pursuant to this Indenture or any Securities, the
Securities shall be issuable in registered form without Coupons.

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

          Section
202. Form of Trustee’s Certificate of
Authentication.  

          Subject
to Section 611, the Trustee’s certificate of authentication shall be in
substantially the following form:

18

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

	
  

 	
  

 	
  

 
	
  

 	
 WELLS FARGO
 BANK, NATIONAL ASSOCIATION, as Trustee

 
	
  

 	
  

 	
  

 
	
  

 	
 By: 

 	
  

 
	
  

 	
  

 	

 

 
	
  

 	
  

 	
 Authorized
 Signatory

 

          Section
203. Securities in Global Form.  

          Unless
otherwise provided in or pursuant to this Indenture or any Securities, the
Securities shall not be issuable in global form. If Securities of a series
shall be issuable in temporary or permanent global form, any such Security may
provide that it or any number of such Securities shall represent the aggregate
amount of all Outstanding Securities of such series (or such lesser amount as
is permitted by the terms thereof) from time to time endorsed thereon or
reflected on the books and records of the Trustee and may also provide that the
aggregate amount of Outstanding Securities represented thereby may from time to
time be increased or reduced to reflect exchanges. Any endorsement of any
Security in global form to reflect the amount, or any increase or decrease in
the amount, or changes in the rights of Holders, of Outstanding Securities
represented thereby shall be made in such manner and by such Person or Persons
as shall be specified therein or pursuant to Section 301 with respect to such
Security or in the Company Order to be delivered pursuant to Section 303 or
Section 304 with respect thereto. Subject to the provisions of Section 303 and,
if applicable, Section 304, the Trustee shall deliver and redeliver any
Security in global form in the manner and upon instructions given by the Person
or Persons specified therein or pursuant to Section 301 with respect to such
Security or in the applicable Company Order. If a Company Order pursuant to
Section 303 or Section 304 has been, or simultaneously is, delivered, any
instructions by the Company with respect to a Security in global form shall be
in writing but need not be accompanied by or contained in an Officers’
Certificate and need not be accompanied by an Opinion of Counsel.
Notwithstanding the foregoing provisions of this paragraph, in the event a
global Security is exchangeable for definitive Securities as provided in
Section 305, then, unless otherwise provided in or pursuant to this Indenture
with respect to the Securities of such series, the Trustee shall deliver and
redeliver such global Security to the extent necessary to effect such
exchanges, shall endorse such global Security to reflect any decrease in the
principal amount thereto resulting from such exchanges and shall take such
other actions, all as contemplated by Section 305.

          Notwithstanding
the provisions of Section 307, unless otherwise specified in or pursuant to
this Indenture or any Securities, payment of principal of, any premium and
interest on, and any Additional Amounts in respect of, any Security in
temporary or permanent global form shall be made to the Person or Persons
specified therein.

          Notwithstanding
the provisions of Section 308 and except as provided in the preceding
paragraph, the Company, the Trustee and any agent of the Company and the
Trustee shall treat as the Holder of such principal amount of Outstanding
Securities represented by a global Security

19

(i) in
the case of a global Security in registered form, the Holder of such global
Security in registered form, or (ii) in the case of a global Security in
bearer form, the Person or Persons specified pursuant to Section 301.

ARTICLE THREE

THE SECURITIES

          Section
301. Amount Unlimited; Issuable in Series.  

          The
aggregate principal amount of Securities which may be authenticated and
delivered under this Indenture is unlimited. The Securities may be issued in
one or more series.

          With
respect to any Securities to be authenticated and delivered hereunder, there
shall be established in or pursuant to one or more Board Resolutions and set
forth in an Officers’ Certificate, or established in one or more indentures supplemental
hereto, prior to the issuance of any Securities of a series,

          (1)
the title of the Securities of such series;

          (2)
any limit upon the aggregate principal amount of the Securities of such 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 such series pursuant to
Section 304, Section 305, Section 306, Section 905 or Section 1107, upon repayment
in part of any Security of such series pursuant to Article Thirteen or upon
surrender in part of any Security for conversion or exchange into Common Shares
or other securities or property pursuant to its terms), and if such series may
not be reopened from time to time for the issuance of additional Securities of
such series;

          (3)
if such Securities are to be issuable as Registered Securities, as Bearer
Securities or alternatively as Bearer Securities and Registered Securities, and
whether the Bearer Securities are to be issuable with Coupons, without Coupons
or both, and any restrictions applicable to the offer, sale or delivery of the
Bearer Securities and the terms, if any, upon which Bearer Securities may be
exchanged for Registered Securities and vice versa;

          (4)
if any of such Securities are to be issuable in global form, when any of such
Securities are to be issuable in global form and (i) whether such
Securities are to be issued in temporary or permanent global form or both,
(ii) whether beneficial owners of interests in any such global Security
may exchange such interests for Securities of the same series and of like tenor
and of any authorized form and denomination, and the circumstances under which
any such exchanges may occur, if other than in the manner specified in Section
305, (iii) the name of the Depository with respect to any such global
Security and (iv) if applicable and in addition to the Persons specified
in Section 305, the Person or Persons who shall be entitled to make any
endorsements on any such global Security and to give the instructions and take
the other actions with respect to such global Security contemplated by the
first paragraph of Section 203;

20

          (5)
if any of such Securities are to be issuable as Bearer Securities, the date as
of which any such Bearer Security shall be dated (if other than the date of
original issuance of the first of such Securities to be issued);

          (6)
if any of such Securities are to be issuable as Bearer Securities, whether
interest in respect of any portion of a temporary Bearer Security in global
form payable in respect of an Interest Payment Date therefor prior to the
exchange, if any, of such temporary Bearer Security for definitive Securities
shall be paid to any clearing organization with respect to the portion of such
temporary Bearer Security held for its account and, in such event, the terms
and conditions (including any certification requirements) upon which any such
interest payment received by a clearing organization will be credited to the
Persons entitled to interest payable on such Interest Payment Date;

          (7)
the date or dates, or the method or methods, if any, by which such date or
dates shall be determined, on which the principal and premium, if any, of such
Securities is payable;

          (8)
the rate or rates at which such Securities shall bear interest, if any, or the
method or methods, if any, by which such rate or rates are to be determined,
the date or dates, if any, from which such interest shall begin to accrue or
the method or methods, if any, by which such date or dates are to be
determined, the Interest Payment Dates, if any, on which such interest shall be
payable and the Regular Record Date, if any, for the interest payable on Registered
Securities on any Interest Payment Date, the notice, if any, to Holders
regarding the determination of interest on a floating rate Security and the
manner of giving such notice, and the basis upon which interest shall be
calculated if other than that of a 360-day year of twelve 30-day months;

          (9)
if in addition to or other than the place where the Corporate Trust Office of
the Trustee may from time to time be located, the place or places where the
principal of, premium, if any, and interest, if any, on, and Additional
Amounts, if any, with respect to, such Securities shall be payable, any of such
Securities that are Registered Securities may be surrendered for registration
of transfer or exchange, any of such Securities may be surrendered for
conversion or exchange and notices or demands to or upon the Company in respect
of such Securities and this Indenture may be served;

          (10)
whether any of such Securities are to be redeemable at the option of the
Company and, if so, the date or dates on which, the period or periods within
which, the price or prices at which and the other terms and conditions upon
which such Securities may be redeemed, in whole or in part, at the option of
the Company;

          (11)
if the Company is obligated to redeem or purchase any of such Securities
pursuant to any sinking fund or analogous provision or at the option of any
Holder thereof and, if so, the date or dates on which, the period or periods
within which, the price or prices at which and the other terms and conditions
upon which such Securities shall be redeemed or purchased, in whole or in part,
pursuant to such obligation, and any provisions for the remarketing of such
Securities so redeemed or purchased;

21

          (12)
the denominations in which any of such Securities that are Registered
Securities shall be issuable if other than denominations of $1,000 and any
integral multiples thereof, and the denominations in which any of such
Securities that are Bearer Securities shall be issuable if other than the
denomination of $5,000;

          (13)
whether the Securities of the series will be convertible into and/or
exchangeable for Common Shares or other securities or property, and if so, the
terms and conditions upon which such Securities will be so convertible or
exchangeable, and any deletions from or modifications or additions to this
Indenture to permit or to facilitate the issuance of such convertible or
exchangeable Securities or the administration thereof;

          (14)
if other than the principal amount thereof, the portion of the principal amount
of any of such Securities that shall be payable upon declaration of
acceleration of the Maturity thereof pursuant to Section 502 or the method by
which such portion is to be determined;

          (15)
if other than Dollars, the Foreign Currency in which payment of the principal
of, any premium or interest on or any Additional Amounts with respect to any of
such Securities shall be payable;

          (16)
if the principal of, any premium or interest on or any Additional Amounts with
respect to any of such Securities are to be payable, at the election of the
Company or a Holder thereof or otherwise, in Dollars or in a Foreign Currency
other than that in which such Securities are stated to be payable, the date or
dates on which, the period or periods within which, and the other terms and
conditions upon which, such election may be made, and the time and manner of
determining the exchange rate between the Currency in which such Securities are
stated to be payable and the Currency in which such Securities or any of them
are to be paid pursuant to such election, and any deletions from or
modifications of or additions to the terms of this Indenture to provide for or
to facilitate the issuance of Securities denominated or payable, at the
election of the Company or a Holder thereof or otherwise, in a Foreign
Currency;

          (17)
if the amount of payments of principal of, any premium or interest on or any
Additional Amounts with respect to such Securities may be determined with
reference to an index, formula or other method or methods (which index, formula
or method or methods may be based, without limitation, on one or more
Currencies, commodities, equity indices or other indices), and, if so, the
terms and conditions upon which and the method by which such amounts shall be
determined and paid or payable;

          (18)
any deletions from, modifications of or additions to the Events of Default or
covenants of the Company with respect to such Securities (whether or not such
Events of Default or covenants are consistent with the Events of Default or
covenants set forth herein), and, if any additional covenants not contained in
this Indenture as of its date shall be applicable with respect to such
Securities, whether Section 1006 shall be applicable with respect to any such
additional covenants;

          (19)
if any one or more of Section 401 relating to satisfaction and discharge,
Section 402(2) relating to defeasance or Section 402(3) relating to
covenant defeasance shall not be applicable to the Securities of such series,
and any covenants in addition to or other than those

22

covenants, if
any, specified in Section 402(3) relating to the Securities of such series
which shall be subject to covenant defeasance, and, if the Securities of such
series are subject to repurchase or repayment at the option of the Holders
thereof pursuant to Article Thirteen, if the Company’s obligation to repurchase
or repay such Securities will not be subject to satisfaction and discharge
pursuant to Section 401 or to defeasance pursuant to Section 402, and, if the
Holders of such Securities have the right to convert or exchange such
Securities into Common Shares or other securities or property, if the right to
effect such conversion or exchange will be subject to satisfaction and
discharge pursuant to Section 401 or to defeasance or covenant defeasance
pursuant to Section 402, and any deletions from, or modifications or additions
to, the provisions of Article Four in respect of the Securities of such series;

          (20)
if any of such Securities are to be issuable upon the exercise of warrants, and
the time, manner and place for such Securities to be authenticated and
delivered;

          (21)
if any of such Securities are issuable in global form and are to be issuable in
definitive form (whether upon original issue or upon exchange of a temporary
Security) only upon receipt of certain certificates or other documents or
satisfaction of other conditions, then the form and terms of such certificates,
documents or conditions;

          (22)
whether and under what circumstances the Company will pay Additional Amounts on
such Securities to any Holder who is a United States Alien in respect of
specified taxes, assessments or other government charges and, if so, whether
the Company will have the option to redeem such Securities rather than pay such
Additional Amounts;

          (23)
if there is more than one Trustee, the identity of the Trustee and, if not the
Trustee, the identity of each Security Registrar, Paying Agent or
Authenticating Agent with respect to such Securities;

          (24)
the Person to whom any interest on any Registered Security of such series shall
be payable, if other than the Person in whose name the Registered Security (or
one or more Predecessor Securities) is registered at the close of business on
the Regular Record Date for such interest, the manner in which, or the Person
to whom, any interest on any Bearer Security of such series shall be payable,
if other than upon presentation and surrender of the Coupons appertaining
thereto as they severally mature, and the extent to which, or the manner in
which, any interest payable on a temporary global Security will be paid if
other than in the manner provided in this Indenture;

          (25)
whether the Securities of such series are to be secured by any property, assets
or other collateral and, if so, the applicable collateral, any deletions from,
or modifications or additions to, the provisions of Article Sixteen hereof or any
other provisions of this Indenture in connection therewith or in connection
with any other instrument or agreement entered into in connection therewith;
and

          (26)
any other terms of such Securities (whether or not such other terms are
consistent or inconsistent with any other terms of this Indenture) and any
deletions from or modifications or additions to this Indenture in respect of
such Securities.

23

          All
Securities of any one series and all Coupons, if any, appertaining to Bearer Securities
of such series shall be substantially identical except as to Currency of
payments due thereunder, denomination and the rate of interest, or method of
determining the rate of interest, if any, Maturity, and the date from which
interest, if any, shall accrue and except as may otherwise be provided by the
Company in or pursuant to the Board Resolution and set forth in the Officers’
Certificate or in any indenture or indentures supplemental hereto pertaining to
such series of Securities. The terms of the Securities of any series may
provide, without limitation, that the Securities shall be authenticated and
delivered by the Trustee on original issue from time to time upon written or
(if acceptable to the Trustee) oral order of persons designated in the Board
Resolution, Officers’ Certificate or supplemental indenture, as the case may
be, pertaining to such series of Securities (telephonic instructions to be
promptly confirmed in writing by such person) and that such persons are
authorized to determine, consistent with such Board Resolution, Officers’
Certificate or supplemental indenture, such terms and conditions of the
Securities of such series as are specified in such Board Resolution, Officers’
Certificate or supplemental indenture. All Securities of any one series need
not be issued at the same time and, unless otherwise provided by the Company as
contemplated by this Section 301, a series may be reopened from time to time
without the consent of any Holders for issuances of additional Securities of such
series.

          If
any of the terms of the Securities of any series shall be established by action
taken by or pursuant to one or more Board Resolutions, such Board Resolutions
shall be delivered to the Trustee at or prior to the delivery of the Officers’
Certificate setting forth the terms of such series.

          Section 302. Currency;
Denominations.  

          Unless
otherwise provided in or pursuant to this Indenture, the principal of, any
premium and interest on and any Additional Amounts with respect to the
Securities shall be payable in Dollars. Unless otherwise provided in or
pursuant to this Indenture, Registered Securities denominated in Dollars shall
be issuable in registered form without Coupons in denominations of $1,000 and
any integral multiples thereof, and the Bearer Securities denominated in
Dollars shall be issuable in the denomination of $5,000. Securities not
denominated in Dollars shall be issuable in such denominations as are
established with respect to such Securities in or pursuant to this Indenture.

          Section 303. Execution,
Authentication, Delivery and Dating.

          Securities
shall be executed on behalf of the Company by its Chairman, its Chief Executive
Officer, its President or one of its Vice Presidents and by its Treasurer, one
of its Assistant Treasurers, its Secretary or one of its Assistant Secretaries
and may (but need not) have its corporate or other seal or a facsimile thereof
reproduced thereon. Coupons shall be executed on behalf of the Company by its
Chairman, its Chief Executive Officer, its President or any of its Vice
Presidents. The signature of any of these officers on the Securities or any
Coupons appertaining thereto may be manual or facsimile.

          Securities
and any Coupons appertaining thereto bearing the manual or facsimile signatures
of individuals who were at any time the proper officers of the Company shall,
to the

24

fullest extent
permitted by law, bind the Company, notwithstanding that such individuals or
any of them have ceased to hold such offices prior to the authentication and
delivery of such Securities or did not hold such offices at the date of such
Securities or Coupons.

          At any time
and from time to time after the execution and delivery of this Indenture, the
Company may deliver Securities, together with any Coupons appertaining thereto,
executed by the Company, to the Trustee for authentication and, provided that
the Board Resolution and Officers’ Certificate or supplemental indenture or
indentures with respect to such Securities referred to in Section 301 and a
Company Order for the authentication and delivery of such Securities have been
delivered to the Trustee, the Trustee in accordance with the Company Order and
subject to the provisions hereof and of such Securities shall authenticate and
deliver such Securities. In authenticating such Securities, and accepting the
additional responsibilities under this Indenture in relation to such Securities
and any Coupons appertaining thereto, the Trustee shall receive, and (subject
to the applicable provisions of Sections 315(a) through 315(d) of the
Trust Indenture Act) shall be fully protected in conclusively relying upon, an
Opinion of Counsel to the following effect, which Opinion of Counsel may
contain such assumptions, qualifications and limitations as such counsel shall
deem appropriate:

	
  

 	
  

 
	
  

 	
           (a)
 the form or forms and terms of such Securities and Coupons, if any, have been
 established in conformity with Section 201 and Section 301 of this Indenture;
 and

 
	
  

 	
  

 
	
  

 	
           (b)
 all conditions precedent set forth in Section 201, Section 301 and Section
 303 of this Indenture to the authentication and delivery of such Securities
 and Coupons, if any, appertaining thereto have been complied with and that
 such Securities, and Coupons, when completed by appropriate insertions (if
 applicable), executed by duly authorized officers of the Company, delivered
 by duly authorized officers of the Company to the Trustee for authentication
 pursuant to this Indenture, and authenticated and delivered by the Trustee
 and issued by the Company in the manner and subject to any conditions
 specified in such Opinion of Counsel, will constitute valid and binding
 obligations of the Company, enforceable against the Company in accordance
 with their terms, except as enforcement thereof may be subject to or limited
 by bankruptcy, insolvency, reorganization, moratorium, arrangement,
 fraudulent conveyance, fraudulent transfer or other similar laws relating to
 or affecting creditors’ rights generally, and subject to general principles
 of equity (regardless of whether enforcement is sought in a proceeding in
 equity or at law).

 

          If
all the Securities of any series are not to be issued at one time, it shall not
be necessary to deliver an Opinion of Counsel at the time of issuance of each
Security, but such opinion, with such modifications as counsel shall deem
appropriate, shall be delivered at or before the time of issuance of the first
Security of such series. After any such first delivery, any separate request by
the Company that the Trustee authenticate Securities of such series for
original issue will be deemed to be a certification by the Company that all
conditions precedent provided for in this Indenture relating to authentication
and delivery of such Securities continue to have been complied with.

          The
Trustee shall not be required to authenticate or to cause an Authenticating
Agent to authenticate any Securities if the issue of such Securities pursuant
to this Indenture will affect the

25

Trustee’s own
rights, duties or immunities under the Securities and this Indenture or
otherwise in a manner which is not reasonably acceptable to the Trustee or if
the Trustee, being advised by counsel, determines that such action may not
lawfully be taken.

          Each
Registered Security shall be dated the date of its authentication. Each Bearer
Security and any Bearer Security in global form shall be dated as of the date
specified in or pursuant to this Indenture.

          No
Security or Coupon appertaining thereto shall be entitled to any benefit under
this Indenture or be valid or obligatory for any purpose, unless there appears
on such Security a certificate of authentication substantially in the form
provided for in Section 202 or Section 611 executed by or on behalf of the
Trustee or by the Authenticating Agent by the manual signature of one of its
authorized signatories. Such certificate upon any Security shall be conclusive
evidence, and the only evidence, that such Security has been duly authenticated
and delivered hereunder. Except as permitted by Section 306 or Section 307 or
as may otherwise be provided in or pursuant to this Indenture, the Trustee
shall not authenticate and deliver any Bearer Security unless all Coupons
appertaining thereto then matured have been detached and cancelled.

          Section 304. Temporary
Securities.

          Pending
the preparation of definitive Securities, the Company may execute and deliver
to the Trustee and, upon Company Order, the Trustee shall authenticate and deliver,
in the manner provided in Section 303, temporary Securities in lieu thereof
which are printed, lithographed, typewritten, mimeographed or otherwise
produced, in any authorized denomination, substantially of the tenor of the
definitive Securities in lieu of which they are issued, in registered form or,
if authorized in or pursuant to this Indenture, in bearer form with one or more
Coupons or without Coupons and with such appropriate insertions, omissions,
substitutions and other variations as the officers of the Company executing
such Securities may determine, as conclusively evidenced by their execution of
such Securities. Such temporary Securities may be in global form.

          Except
in the case of temporary Securities in global form, which shall be exchanged in
accordance with the provisions set forth in this Indenture or the provisions
established pursuant to Section 301, if temporary Securities are issued, the
Company shall cause definitive Securities to be prepared without unreasonable
delay. Except as otherwise provided in or pursuant to this Indenture, after the
preparation of definitive Securities of the same series and containing terms
and provisions that are identical to those of any temporary Securities, such
temporary Securities shall be exchangeable for such definitive Securities upon
surrender of such temporary Securities at an Office or Agency for such
Securities, without charge to any Holder thereof. Except as otherwise provided
in or pursuant to this Indenture, upon surrender for cancellation of any one or
more temporary Securities (accompanied by any unmatured Coupons appertaining
thereto), the Company shall execute and the Trustee shall authenticate and
deliver in exchange therefor a like principal amount of definitive Securities of
authorized denominations of the same series and containing identical terms and
provisions; provided, however,
that no definitive Bearer Security, except as provided in or pursuant to this
Indenture, shall be delivered in exchange for a temporary Registered Security;
and provided, further, that a
definitive Bearer Security shall be delivered in exchange for a temporary
Bearer Security only in compliance with the conditions set forth in or pursuant
to this Indenture. Unless otherwise provided in or pursuant to this Indenture

26

with respect
to a temporary global Security, until so exchanged the temporary Securities of
any series shall in all respects be entitled to the same benefits under this
Indenture as definitive Securities of such series.

          Section 305. Registration,
Transfer and Exchange.

          With
respect to the Registered Securities of each series, if any, the Company shall
cause to be kept a register (each such register being herein sometimes referred
to as the “Security Register”) at an Office or Agency for such series in which,
subject to such reasonable regulations as it may prescribe, the Company shall
provide for the registration of the Registered Securities of such series and of
transfers of the Registered Securities of such series. Such Office or Agency
shall be the “Security Registrar” for that series of Securities. Unless
otherwise specified in or pursuant to this Indenture or the Securities, the
initial Security Registrar for each series of Securities shall be as specified
in the last paragraph of Section 1002. The Company shall have the right to
remove and replace from time to time the Security Registrar for any series of
Securities; provided that no such removal or replacement shall be effective
until a successor Security Registrar with respect to such series of Securities
shall have been appointed by the Company and shall have accepted such
appointment. In the event that the Trustee shall not be or shall cease to be
Security Registrar with respect to a series of Securities, it shall have the
right to examine the Security Register for such series at all reasonable times.
There shall be only one Security Register for each series of Securities.

          Except
as otherwise provided in or pursuant to this Indenture, upon surrender for
registration of transfer of any Registered Security of any series at any Office
or Agency for such series, the Company shall execute, and the Trustee shall
authenticate and deliver, in the name of the designated transferee or
transferees, one or more new Registered Securities of the same series
denominated as authorized in or pursuant to this Indenture, of a like aggregate
principal amount bearing a number not contemporaneously outstanding and
containing identical terms and provisions.

          Except
as otherwise provided in or pursuant to this Indenture, at the option of the
Holder, Registered Securities of any series may be exchanged for other
Registered Securities of the same series containing identical terms and
provisions, in any authorized denominations, and of a like aggregate principal
amount, upon surrender of the Securities to be exchanged at any Office or
Agency for such series. Whenever any Registered Securities are so surrendered
for exchange, the Company shall execute, and the Trustee shall authenticate and
deliver, the Registered Securities which the Holder making the exchange is
entitled to receive.

          If
provided in or pursuant to this Indenture, with respect to Securities of any
series, at the option of the Holder, Bearer Securities of such series may be
exchanged for Registered Securities of such series containing identical terms,
denominated as authorized in or pursuant to this Indenture and in the same
aggregate principal amount, upon surrender of the Bearer Securities to be exchanged
at any Office or Agency for such series, with all unmatured Coupons and all
matured Coupons in default thereto appertaining. If the Holder of a Bearer
Security is unable to produce any such unmatured Coupon or Coupons or matured
Coupon or Coupons in default, such exchange may be effected if the Bearer
Securities are accompanied by payment in funds acceptable to the Company and
the Trustee in an amount equal to the face amount of such 

27

missing Coupon
or Coupons, or the surrender of such missing Coupon or Coupons may be waived by
the Company and the Trustee if there is furnished to them such security or
indemnity as they may require to save each of them and any Paying Agent
harmless from and against any and all loss, liability or expense. If thereafter
the Holder of such Bearer Security shall surrender to any Paying Agent any such
missing Coupon in respect of which such a payment shall have been made, such
Holder shall be entitled to receive the amount of such payment; provided, however, that, except as
otherwise provided in Section 1002, interest represented by Coupons shall be
payable only upon presentation and surrender of those Coupons at an Office or
Agency for such series located outside the United States. Notwithstanding the
foregoing, in case a Bearer Security of any series is surrendered at any such
Office or Agency for such series in exchange for a Registered Security of such
series and like tenor after the close of business at such Office or Agency on
(i) any Regular Record Date and before the opening of business at such
Office or Agency on the relevant Interest Payment Date, or (ii) any
Special Record Date and before the opening of business at such Office or Agency
on the related date for payment of Defaulted Interest, such Bearer Security shall
be surrendered without the Coupon relating to such Interest Payment Date or
proposed date of payment, as the case may be (or, if such Coupon is so
surrendered with such Bearer Security, such Coupon shall be returned to the
Person so surrendering the Bearer Security), and interest or Defaulted
Interest, as the case may be, shall not be payable on such Interest Payment
Date or proposed date for payment, as the case may be, in respect of the
Registered Security issued in exchange for such Bearer Security, but shall be
payable only to the Holder of such Coupon when due in accordance with the
provisions of this Indenture.

          If
provided in or pursuant to this Indenture with respect to Securities of any
series, at the option of the Holder, Registered Securities of such series may
be exchanged for Bearer Securities upon such terms and conditions as may be
provided in or pursuant to this Indenture with respect to such series.

          Whenever
any Securities are surrendered for exchange as contemplated by the immediately
preceding two paragraphs, the Company shall execute, and the Trustee shall
authenticate and deliver, the Securities which the Holder making the exchange
is entitled to receive.

          Notwithstanding
the foregoing, except as otherwise provided in or pursuant to this Indenture,
the global Securities of any series shall be exchangeable for definitive
certificated Securities of such series only if (i) the Depository for such
global Securities notifies the Company that it is unwilling or unable to
continue as a Depository for such global Securities or at any time the
Depository for such global Securities ceases to be a clearing agency registered
as such under the Exchange Act, if so required by applicable law or regulation,
and no successor Depository for such Securities shall have been appointed
within 90 days of such notification or of the Company becoming aware of
the Depository’s ceasing to be so registered, as the case may be, (ii) the
Company, in its sole discretion, determines that the Securities of such series
shall no longer be represented by one or more global Securities and executes
and delivers to the Trustee a Company Order to the effect that such global
Securities shall be so exchangeable, or (iii) an Event of Default has
occurred and is continuing with respect to such Securities.

28

          If
the beneficial owners of interests in a global Security are entitled to
exchange such interests for definitive Securities as the result of an event
described in clause (i), (ii) or (iii) of the preceding
paragraph, then without unnecessary delay but in any event not later than the
earliest date on which such interests may be so exchanged, the Company shall
deliver to the Trustee definitive Securities in such form and denominations as
are required by or pursuant to this Indenture, and of the same series,
containing identical terms and in aggregate principal amount equal to the
principal amount of such global Security, executed by the Company. On or after
the earliest date on which such interests may be so exchanged, such global
Security shall be surrendered from time to time by the Depository (or its
custodian) as shall be specified in the Company Order with respect thereto
(which the Company agrees to deliver), and in accordance with instructions
given to the Trustee and the Depository (which instructions shall be in writing
but need not be contained in or accompanied by an Officers’ Certificate or be
accompanied by an Opinion of Counsel), as shall be specified in the Company
Order with respect thereto to the Trustee, as the Company’s agent for such
purpose, to be exchanged, in whole or in part, for definitive Securities as
described above without charge. The Trustee shall authenticate and make
available for delivery, in exchange for each portion of such surrendered global
Security, a like aggregate principal amount of definitive Securities of the
same series of authorized denominations and of like tenor as the portion of
such global Security to be exchanged, which (unless such Securities are not
issuable both as Bearer Securities and as Registered Securities, in which case
the definitive Securities exchanged for the global Security shall be issuable
only in the form in which the Securities are issuable, as provided in or
pursuant to this Indenture) shall be in the form of Bearer Securities or
Registered Securities, or any combination thereof, and which shall be in such
denominations and, in the case of Registered Securities, registered in such
names, as shall be specified by the Depository, but subject to the satisfaction
of any certification or other requirements to the issuance of Bearer
Securities; provided, however, that no such exchanges may occur during a period
beginning at the opening of business 15 days before any selection of Securities
of the same series to be redeemed and ending on the relevant Redemption Date;
and provided, further, that
(unless otherwise provided in or pursuant to this Indenture) no Bearer Security
delivered in exchange for a portion of a global Security shall be mailed or
otherwise delivered to any location in the United States. Promptly following
any such exchange in part, such global Security shall be returned by the
Trustee to such Depository (or its custodian) or such other Depository (or its
custodian) referred to above in accordance with the instructions of the Company
referred to above, and the Trustee shall endorse such global Security to
reflect the decrease in the principal amount thereof resulting from such
exchange. If a Registered Security is issued in exchange for any portion of a
global Security after the close of business at the Office or Agency for such
Security where such exchange occurs on or after (i) any Regular Record
Date for such Security and before the opening of business at such Office or Agency
on the next Interest Payment Date, or (ii) any Special Record Date for
such Security and before the opening of business at such Office or Agency on
the related proposed date for payment of interest or Defaulted Interest, as the
case may be, interest shall not be payable on such Interest Payment Date or
proposed date for payment, as the case may be, in respect of such Registered
Security, but shall be payable on such Interest Payment Date or proposed date
for payment, as the case may be, only to the Person to whom interest in respect
of such portion of such global Security shall be payable in accordance with the
provisions of this Indenture.

          All
Securities issued upon any registration of transfer or exchange of Securities
shall be the valid obligations of the Company evidencing the same debt and
entitling the Holders thereof

29

to the same
benefits under this Indenture as the Securities surrendered upon such
registration of transfer or exchange.

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

          No
service charge shall be made for any registration of transfer or exchange of
Securities, or any redemption or repayment of Securities, or any conversion or
exchange of Securities for other types of securities or property, but the
Company may require payment of a sum sufficient to cover any tax or other
governmental charge that may be imposed in connection with any registration of
transfer or exchange of Securities, other than exchanges pursuant to Section
304, Section 905 or Section 1107, upon repayment or repurchase in part of any
Registered Security pursuant to Article Thirteen, or upon surrender in part of
any Registered Security for conversion or exchange into Common Shares or other
securities or property pursuant to its terms, in each case not involving any
transfer.

          Except
as otherwise provided in or pursuant to this Indenture, the Company shall not be
required (i) to issue, register the transfer of or exchange any Securities
during a period beginning at the opening of business 15 days before the day of
the mailing of notice of redemption of Securities of like tenor and terms and
of the same series under Section 1103 and ending at the close of business on
the day of such mailing, or (ii) to register the transfer of or exchange
any Registered Security, or portion thereof, so selected for redemption, except
in the case of any Registered Security to be redeemed in part, the portion
thereof not to be redeemed, or (iii) to exchange any Bearer Security so
selected for redemption except, to the extent provided with respect to such
Bearer Security, that such Bearer Security may be exchanged for a Registered
Security of like tenor and terms and of the same series, provided that such
Registered Security shall be simultaneously surrendered for redemption with
written instruction for payment consistent with the provisions of this
Indenture or (iv) to issue, register the transfer of or exchange any
Security which, in accordance with its terms, has been surrendered for
repayment at the option of the Holder pursuant to Article Thirteen and not
withdrawn, except the portion, if any, of such Security not to be so repaid.

          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 Depository 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.

          Neither
the Trustee nor any agent shall have any responsibility for any actions taken
or not taken by the Depository.

30

          Section
306. Mutilated, Destroyed, Lost and Stolen
Securities.

          If
any mutilated Security or a Security with a mutilated Coupon appertaining to it
is surrendered to the Trustee, subject to the provisions of this Section 306,
the Company shall execute and the Trustee shall authenticate and deliver in
exchange therefor a new Security of the same series containing identical terms
and of like principal amount and bearing a number not contemporaneously
outstanding, with Coupons appertaining thereto corresponding to the Coupons, if
any, appertaining to the surrendered Security. 

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

          Notwithstanding
the foregoing provisions of this Section 306, in case any mutilated, destroyed,
lost or stolen Security or Coupon has become or is about to become due and
payable, the Company in its discretion may, instead of issuing a new Security,
pay such Security or Coupon; provided, however, that payment of principal of,
any premium or interest on or any Additional Amounts with respect to any Bearer
Securities shall, except as otherwise provided in Section 1002, be payable only
at an Office or Agency for such Securities located outside the United States
and, unless otherwise provided in or pursuant to this Indenture, any interest
on Bearer Securities and any Additional Amounts with respect to such interest
shall be payable only upon presentation and surrender of the Coupons
appertaining thereto. 

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

          Every
new Security, with any Coupons appertaining thereto issued pursuant to this
Section in lieu of any destroyed, lost or stolen Security, or in exchange for a
Security to which a destroyed, lost or stolen Coupon appertains shall
constitute a separate obligation of the Company, whether or not the destroyed,
lost or stolen Security and Coupons appertaining thereto or the destroyed, lost
or stolen Coupon shall be at any time enforceable by anyone, and shall be
entitled to all the benefits of this Indenture equally and proportionately with
any and all other Securities of such series and any Coupons, if any, duly
issued hereunder. 

          The
provisions of this Section, as amended or supplemented pursuant to this
Indenture with respect to particular Securities or generally, shall (to the
extent lawful) be exclusive and 

31

shall preclude
(to the extent lawful) all other rights and remedies with respect to the
replacement or payment of mutilated, destroyed, lost or stolen Securities or
Coupons. 

	
  

 	
  

 	
  

 
	
  

 	
 Section 307.

 	
 Payment of Interest and Certain Additional Amounts; Rights to
 Interest and Certain Additional Amounts Preserved. 

 

          Unless
otherwise provided in or pursuant to this Indenture, any interest on and any
Additional Amounts with respect to any Registered Security which shall be
payable, and are punctually paid or duly provided for, on any Interest Payment
Date shall be paid to the Person in whose name such Security (or one or more Predecessor
Securities) is registered as of the close of business on the Regular Record
Date for such interest. Unless otherwise provided in or pursuant to this
Indenture, in case a Bearer Security is surrendered in exchange for a
Registered Security after the close of business at an Office or Agency for such
Security on any Regular Record Date therefor and before the opening of business
at such Office or Agency on the next succeeding Interest Payment Date therefor,
such Bearer Security shall be surrendered without the Coupon relating to such
Interest Payment Date and interest shall not be payable on such Interest
Payment Date in respect of the Registered Security issued in exchange for such
Bearer Security, but shall be payable only to the Holder of such Coupon when
due in accordance with the provisions of this Indenture. 

          Unless
otherwise provided in or pursuant to this Indenture, any interest on and any
Additional Amounts with respect to any Registered Security which shall be
payable, but shall not be punctually paid or duly provided for, on any Interest
Payment Date for such Registered Security (herein called “Defaulted Interest”)
shall forthwith cease to be payable to the Holder thereof on the relevant
Regular Record Date by virtue of having been such Holder; and such Defaulted
Interest may be paid by the Company, at its election in each case, as provided
in Clause (1) or (2) below: 

          (1)
The Company may elect to make payment of any Defaulted Interest to the Person
in whose name such Registered Security (or a Predecessor Security thereof)
shall be 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 such Registered 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 on or prior to the date of the proposed
payment, such money when so deposited to be held in trust for the benefit of
the Person entitled to such Defaulted Interest as in this Clause provided.
Thereupon, the Trustee shall fix a Special Record Date for the payment of such
Defaulted Interest which shall be not more than 15 days and not less than 10
days prior to the date of the proposed payment and not less than 10 days after
the receipt by the Trustee of the notice of the proposed payment. The Trustee
shall promptly notify the Company of such Special Record Date and, in the name
and at the expense of the Company shall cause notice of the proposed payment of
such Defaulted Interest and the Special Record Date therefor to be mailed,
first-class postage prepaid, to the Holder of such Registered Security (or a
Predecessor Security thereof) at his address as it appears in the Security
Register not less than 10 days prior to such Special Record Date. The Trustee
may, in its discretion, in the name and at the expense of the Company cause a
similar 

32

notice to be
published at least once in an Authorized Newspaper of general circulation in
the Borough of Manhattan, The City of New York, but such publication shall not
be a condition precedent to the establishment of 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 Person in whose name such Registered Security (or a
Predecessor Security thereof) shall be registered at the close of business on
such Special Record Date and shall no longer be payable pursuant to the
following clause (2). In case a Bearer Security is surrendered at the Office or
Agency for such Security in exchange for a Registered Security after the close
of business at such Office or Agency on any Special Record Date and before the
opening of business at such Office or Agency on the related proposed date for
payment of Defaulted Interest, such Bearer Security shall be surrendered
without the Coupon relating to such Defaulted Interest and Defaulted Interest
shall not be payable on such proposed date of payment in respect of the
Registered Security issued in exchange for such Bearer Security, but shall be
payable only to the Holder of such Coupon when due in accordance with the
provisions of this Indenture. 

          (2)
The Company may make payment of any Defaulted Interest in any other lawful
manner not inconsistent with the requirements of any securities exchange on
which such Security 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 payment shall be deemed
practicable by the Trustee. 

          Unless
otherwise provided in or pursuant to this Indenture or the Securities of any
particular series, at the option of the Company, interest on Registered
Securities that bear interest may be paid by mailing a check to the address of
the Person entitled thereto as such address shall appear in the Security
Register or by transfer to an account maintained by the payee with a bank located
in the United States of America. 

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

          Section
308. Persons Deemed Owners. 

          Prior
to due presentment of a Registered Security for registration of transfer, the
Company, the Trustee and any agent of the Company or the Trustee may treat the
Person in whose name such Registered Security is registered in the Security
Register as the owner of such Registered Security for the purpose of receiving
payment of principal of, any premium and (subject to Section 305 and Section
307) interest on and any Additional Amounts with respect to such Registered
Security and for all other purposes whatsoever, whether or not any payment with
respect to such Registered Security shall be overdue, and none of the Company,
the Trustee or any agent of the Company or the Trustee shall be affected by
notice to the contrary. 

          The
Company, the Trustee and any agent of the Company or the Trustee may treat the
bearer of any Bearer Security or the bearer of any Coupon as the absolute owner
of such Security or Coupon for the purpose of receiving payment thereof or on
account thereof and for all other 

33

purposes
whatsoever, whether or not any payment with respect to such Security or Coupon
shall be overdue, and none of the Company, the Trustee or any agent of the
Company or the Trustee shall be affected by notice to the contrary. 

          No
holder of any beneficial interest in any global Security held on its behalf by
a Depository shall have any rights under this Indenture with respect to such
global Security, and such Depository may be treated by the Company, the
Trustee, and any agent of the Company or the Trustee as the owner of such
global Security for all purposes whatsoever. None of the Company, the Trustee,
any Paying Agent or the Security Registrar will have any responsibility or
liability for any aspect of the records relating to or payments made on account
of beneficial ownership interests of a global Security or for maintaining,
supervising or reviewing any records relating to such beneficial ownership
interests. 

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

          Section
309. Cancellation. 

          All
Securities and Coupons surrendered for payment, redemption, registration of
transfer, exchange or conversion or for credit against any sinking fund payment
shall, if surrendered to any Person other than the Trustee, be delivered to the
Trustee, and any such Securities and Coupons, as well as Securities and Coupons
surrendered directly to the Trustee for any such purpose, shall be cancelled
promptly by the Trustee. The Company may at any time deliver to the Trustee for
cancellation any Securities previously authenticated and delivered hereunder
which the Company may have acquired in any manner whatsoever, and all
Securities so delivered shall be cancelled promptly by the Trustee. No
Securities shall be authenticated in lieu of or in exchange for any Securities
cancelled as provided in this Section, except as expressly permitted by or pursuant
to this Indenture. All cancelled Securities and Coupons held by the Trustee
shall be disposed of by the Trustee in accordance with its customary
procedures. 

          Section
310. Computation of Interest. 

          Except
as otherwise provided in or pursuant to this Indenture or in the Securities of
any series, interest on the Securities shall be computed on the basis of a
360-day year of twelve 30-day months. 

          Section
311. CUSIP Numbers. 

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

34

by any defect
in or omission of such numbers. The Company will promptly notify the Trustee in
writing of any change in the “CUSIP” or “ISIN” numbers. 

ARTICLE FOUR

SATISFACTION AND DISCHARGE OF INDENTURE

          Section
401. Satisfaction and Discharge. 

          Unless,
pursuant to Section 301, the provisions of this Section 401 shall not be
applicable with respect to the Securities of any series, upon the direction of
the Company by a Company Order, this Indenture shall cease to be of further
effect with respect to any series of Securities specified in such Company Order
and any Coupons appertaining thereto, and the Trustee, on receipt of a Company
Order, at the expense of the Company, shall execute proper instruments
acknowledging satisfaction and discharge of this Indenture as to such series,
when 

          (1)
either 

	
  

 	
  

 
	
  

 	
           (a)
 all Securities of such series theretofore authenticated and delivered and all
 Coupons appertaining thereto (other than (i) Coupons appertaining to Bearer
 Securities of such series surrendered in exchange for Registered Securities
 of such series and maturing after such exchange whose surrender is not
 required or has been waived as provided in Section 305, (ii) Securities and
 Coupons of such series which have been destroyed, lost or stolen and which
 have been replaced or paid as provided in Section 306, (iii) Coupons
 appertaining to Securities of such series called for redemption and maturing
 after the relevant Redemption Date whose surrender has been waived as provided
 in Section 1106, and (iv) Securities and Coupons of such series for whose
 payment money has theretofore been deposited in trust or segregated and held
 in trust by the Company and thereafter repaid to the Company or discharged
 from such trust, as provided in Section 1103) have been delivered to the
 Trustee for cancellation; or 

 
	
  

 	
  

 
	
  

 	
           (b)
 all Securities of such series and, in the case of (i) or (ii) below, if
 applicable, any Coupons appertaining thereto not theretofore delivered to the
 Trustee for cancellation 

 
	
  

 	
  

 
	
  

 	
                     (i)
 have become due and payable, or 

 
	
  

 	
  

 
	
  

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

 
	
  

 	
  

 
	
  

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

 

and the
Company, in the case of (i), (ii) or (iii) above, has deposited or caused to be
deposited with the Trustee as trust funds in trust for such purpose, money in
the Currency in which such 

35

Securities are
payable in an amount sufficient to pay and discharge the entire indebtedness on
such Securities and any Coupons appertaining thereto not theretofore delivered
to the Trustee for cancellation, including the principal of, any premium and
interest on, and, to the extent that the Securities of such series provide for
the payment of Additional Amounts thereon and the amount of any such Additional
Amounts which are or will be payable with respect to the Securities of such
series is at the time of deposit reasonably determinable by the Company (in the
exercise by the Company of its sole and absolute discretion), any Additional
Amounts with respect to, such Securities and any Coupons appertaining thereto,
to the date of such deposit (in the case of Securities which have become due
and payable) or to the Maturity thereof, as the case may be; 

          (2)
the Company has paid or caused to be paid all other sums payable hereunder by
the Company with respect to the Outstanding Securities of such series and any
Coupons appertaining thereto; and 

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

          In
the event there are Securities of two or more series Outstanding hereunder, the
Trustee shall be required to execute an instrument acknowledging satisfaction
and discharge of this Indenture only if requested to do so with respect to
Securities of such series as to which it is Trustee and if the other conditions
thereto are met. 

          Notwithstanding
the satisfaction and discharge of this Indenture with respect to any series of
Securities, the obligations of the Company to the Trustee under Section 606
and, if money shall have been deposited with the Trustee pursuant to subclause
(b) of clause (1) of this Section, the respective obligations of the Company
and the Trustee with respect to the Securities of such series under Section
305, Section 306, Section 403, Section 404, Section 1102 and Section 1103, any
rights of Holders of the Securities of such series (unless otherwise provided
pursuant to Section 301 with respect to the Securities of such series) to
convert or exchange, and the obligations of the Company to convert or exchange,
such Securities into Common Shares or other securities or property, and, if
expressly provided pursuant to Section 301 with respect to the Securities of
such series, any rights of Holders of the Securities of such series to require
the Company to repurchase or repay, and the obligations of the Company to
repurchase or repay, such Securities at the option of such Holders as
contemplated by Article Thirteen hereof, shall survive, and, if the Securities
of such series provide for the payment of Additional Amounts pursuant to
Section 1104, the Company will remain obligated, following satisfaction and
discharge of this Indenture with respect to the Securities of such series, to
pay Additional Amounts with respect to such Securities as contemplated by
Section 1104, to the extent (and only to the extent) that the Additional
Amounts payable with respect to such Securities exceed the amount deposited in
respect of such Additional Amounts pursuant to subclause (b) of clause (1) of
this Section. 

36

          Section
402. Defeasance and Covenant Defeasance. 

          (1)
Unless, pursuant to Section 301, either or both of (i) defeasance of the
Securities of or within a series under clause (2) of this Section 402 or (ii)
covenant defeasance of the Securities of or within a series under clause (3) of
this Section 402 shall not be applicable with respect to the Securities of such
series, then such provisions, together with the other provisions of this
Section 402 (with such modifications thereto as may be specified pursuant to Section
301 with respect to any Securities), shall be applicable to such Securities and
any Coupons appertaining thereto, and the Company may at its option by Board
Resolution, at any time, with respect to the Securities of or within such
series and any Coupons appertaining thereto, elect to have Section 402(2) or
Section 402(3) be applied to such Outstanding Securities and any Coupons
appertaining thereto upon compliance with the conditions set forth below in
this Section 402. Unless otherwise specified pursuant to Section 301 with
respect to the Securities of any series, defeasance under clause (2) of this
Section 402 and covenant defeasance under clause (3) of this Section 402 may be
effected with respect to any or all of the Outstanding Securities of any series.
To the extent that the terms of any Security or Coupon appertaining thereto
established in or pursuant to this Indenture permit the Company or any Holder
thereof to extend the date on which any payment of principal of, or premium, if
any, or interest, if any, on, or Additional Amounts, if any, with respect to
such Security or Coupon is due and payable, then unless otherwise provided
pursuant to Section 301, the right to extend such date shall terminate upon
defeasance or covenant defeasance, as the case may be. 

          (2)
Upon the Company’s exercise of the above option applicable to this Section
402(2) with respect to any Securities of or within a series, the Company shall
be deemed to have been discharged from its obligations with respect to such Outstanding
Securities and any Coupons appertaining thereto on the date the conditions set
forth in clause (4) of this Section 402 are satisfied (hereinafter,
“defeasance”). For this purpose, such defeasance means that the Company shall
be deemed to have paid and discharged the entire indebtedness represented by
such Outstanding Securities and any Coupons appertaining thereto, which shall
thereafter be deemed to be “Outstanding” only for the purposes of clause (5) of
this Section 402 and the other Sections of this Indenture referred to in
clauses (i) through (iv) of this paragraph, and shall be deemed to have
satisfied all of its other obligations under such Securities and any Coupons
appertaining thereto and this Indenture insofar as such Securities and any Coupons
appertaining thereto are concerned (and the Trustee, at the expense of the
Company, shall execute proper instruments acknowledging the same), except for
the following which shall survive until otherwise terminated or discharged
hereunder: (i) the rights of Holders of such Outstanding Securities and any
Coupons appertaining thereto to receive, solely (except as provided in clause
(ii) below) from the trust fund described in clause (4)(a) of this Section 402
and as more fully set forth in this Section 402 and Section 403, payments in
respect of the principal of (and premium, if any) and interest, if any, on, and
Additional Amounts, if any, with respect to, such Securities and any Coupons
appertaining thereto when such payments are due, (ii) the obligations of the
Company and the Trustee with respect to such Securities under Section 305,
Section 306, Section 1002 and Section 1003 and, if applicable to the Securities
of such series, any rights of Holders of such Securities (unless otherwise
provided pursuant to Section 301 with respect to the Securities of such series)
to convert or exchange, and the obligations of the Company to convert or
exchange, such Securities into Common Shares or other securities or property,
and, if expressly provided pursuant to Section 301 with respect to the
Securities of such series, any rights of 

37

Holders of the
Securities of such series to require the Company to repurchase or repay, and
the obligations of the Company to repurchase or repay, such Securities at the
option of such Holders as contemplated by Article Thirteen hereof, and, if the
Securities of such series provide for the payment of Additional Amounts
pursuant to Section 1004, the Company will remain obligated, following
defeasance of this Indenture with respect to the Securities of such series, to
pay Additional Amounts with respect to such Securities as contemplated by
Section 1004, to the extent (and only to the extent) that the Additional
Amounts payable with respect to such Securities exceed the amount deposited in
respect of such Additional Amounts pursuant to clause 4(a) of this Section 402,
(iii) the rights, powers, trusts, duties and immunities of the Trustee
hereunder and (iv) this Section 402 and Section 403 and Section 404. The
Company may exercise its option under this Section 402(2) notwithstanding the
prior exercise of its option under Section 402(3) with respect to such
Securities and any Coupons appertaining thereto. 

          (3)
Upon the Company’s exercise of the above option applicable to this Section
402(3) with respect to any Securities of or within a series, the Company shall
be released from its obligations under any covenants applicable to such
Securities which are specified pursuant to Section 301 as being subject to
covenant defeasance on and after the date the conditions set forth in clause
(4) of this Section 402 are satisfied (hereinafter, “covenant defeasance”), and
such Securities and any Coupons appertaining thereto shall thereafter be deemed
to be not “Outstanding” for the purposes of any direction, waiver, consent or
declaration or Act of Holders (and the consequences of any thereof) in
connection with any such covenant, but shall continue to be deemed
“Outstanding” for all other purposes hereunder. For this purpose, such covenant
defeasance means that with respect to such Outstanding Securities and any
Coupons appertaining thereto, the Company may omit to comply with, and shall
have no liability in respect of, any term, condition or limitation set forth in
any such covenant, whether directly or indirectly, by reason of any reference
elsewhere herein to any such Section or such other covenant or by reason of
reference in any such Section or such other covenant to any other provision
herein or in any other document and such omission to comply shall not
constitute a default or an Event of Default under Section 501(5) or Section
501(11) or otherwise, as the case may be, but, except as specified above, the
remainder of this Indenture and such Securities and Coupons appertaining
thereto shall be unaffected thereby. 

          (4)
The following shall be the conditions to application of clause (2) or (3) of
this Section 402 to any Outstanding Securities of or within a series and any
Coupons appertaining thereto: 

	
  

 	
  

 
	
  

 	
           (a)
 The Company shall irrevocably have deposited or caused to be deposited with
 the Trustee (or another trustee satisfying the requirements of Section 607
 who shall agree to comply with the provisions of this Section 402 applicable
 to it) as trust funds in trust for the purpose of making the following
 payments, specifically pledged as security for, and dedicated solely to, the
 benefit of the Holders of such Securities and any Coupons appertaining
 thereto, (1) an amount in Dollars or in such Foreign Currency in which such Securities
 and any Coupons appertaining thereto are then specified as payable at Stated
 Maturity or, if such defeasance or covenant defeasance is to be effected in
 compliance with subsection (f) below, on the relevant Redemption Date, as the
 case may be, or (2) Government Obligations applicable to such Securities and
 Coupons appertaining thereto (determined on the basis of the Currency in
 which such Securities 

 

38

	
  

 	
  

 
	
  

 	
 and Coupons
 appertaining thereto are then specified as payable at Stated Maturity or, if
 such defeasance or covenant defeasance is to be effected in compliance with
 subsection (f) below, on the relevant Redemption Date, as the case may be)
 which through the scheduled payment of principal and interest in respect
 thereof in accordance with their terms will provide, not later than one day
 before the due date of any payment of principal of (and premium, if any) and
 interest, if any, on such Securities and any Coupons appertaining thereto,
 money in an amount, or (3) a combination thereof, in any case, in an amount,
 sufficient, without consideration of any reinvestment of such principal and
 interest, in the opinion of a nationally recognized firm of independent
 public accountants expressed in a written certification thereof delivered to
 the Trustee, to pay and discharge, and which shall be applied by the Trustee
 (or other qualifying trustee) to pay and discharge, (y) the principal of (and
 premium, if any) and interest, if any, on, and, to the extent that such
 Securities provide for the payment of Additional Amounts thereon and the
 amount of any such Additional Amounts which are or will be payable with
 respect to the Securities of such series is at the time of deposit reasonably
 determinable by the Company (in the exercise by the Company of its sole and
 absolute discretion), any Additional Amounts with respect to, such
 Outstanding Securities and any Coupons appertaining thereto on the Stated
 Maturity of such principal or installment of principal or interest or the
 applicable Redemption Date, as the case may be, and (z) any mandatory sinking
 fund payments or analogous payments applicable to such Outstanding Securities
 and any Coupons appertaining thereto on the day on which such payments are
 due and payable in accordance with the terms of this Indenture and of such
 Securities and any Coupons appertaining thereto. 

 
	
  

 	
  

 
	
  

 	
           (b) Such
 defeasance or covenant defeasance shall not result in a breach or violation
 of, or constitute a default under, this Indenture. 

 
	
  

 	
  

 
	
  

 	
           (c) No Event
 of Default or event which with notice or lapse of time or both would become
 an Event of Default with respect to such Securities and any Coupons
 appertaining thereto shall have occurred and be continuing on the date of
 such deposit, and, solely in the case of defeasance under Section 402(2), no
 Event of Default with respect to the Company under clauses (8), (9) or (10)
 of Section 501 with respect to such Securities and any Coupons appertaining
 thereto or event which with notice or lapse of time or both would become an
 Event of Default with respect to the Company under clauses (8), (9) or (10)
 of Section 501 with respect to such Securities and any Coupons appertaining
 thereto shall have occurred and be continuing at any time during the period
 ending on and including the 91st day after the date of such deposit (it being
 understood that this condition to defeasance under Section 402(2) shall not
 be deemed satisfied until the expiration of such period). 

 
	
  

 	
  

 
	
  

 	
           (d) In the
 case of defeasance pursuant to Section 402(2), the Company shall have
 delivered to the Trustee an opinion of independent counsel reasonably
 acceptable to the Trustee stating that (x) the Company has received from, or
 there has been published by, the Internal Revenue Service a ruling, or (y)
 since the date of this Indenture there has been a change in applicable U.S.
 federal income tax law, in either case to the effect that, and based thereon
 such opinion of independent counsel shall confirm that, the Holders and
 beneficial owners of such Outstanding Securities and any Coupons appertaining
 

 

39

	
  

 	
  

 
	
  

 	
 thereto will
 not recognize income, gain or loss for U.S. federal income tax purposes as a
 result of such defeasance and will be subject to U.S. federal income tax on
 the same amounts, in the same manner and at the same times as would have been
 the case if such defeasance had not occurred; or, in the case of covenant
 defeasance pursuant to Section 402(3), the Company shall have delivered to
 the Trustee an opinion of independent counsel reasonably acceptable to the
 Trustee to the effect that the Holders and beneficial owners of such
 Outstanding Securities and any Coupons appertaining thereto will not
 recognize income, gain or loss for U.S. federal income tax purposes as a
 result of such covenant defeasance and will be subject to U.S. federal income
 tax on the same amounts, in the same manner and at the same times as would
 have been the case if such covenant defeasance had not occurred. 

 
	
  

 	
  

 
	
  

 	
           (e) The
 Company shall have delivered to the Trustee an Officers’ Certificate and an
 Opinion of Counsel, each stating that all conditions precedent to the
 defeasance or covenant defeasance, as the case may be, under this Indenture
 have been complied with. 

 
	
  

 	
  

 
	
  

 	
           (f) If the
 monies or Government Obligations or combination thereof, as the case may be,
 deposited under clause (a) above are sufficient to pay the principal of, and
 premium, if any, and interest, if any, on and, to the extent provided in such
 clause (a), Additional Amounts with respect to, such Securities provided such
 Securities are redeemed on a particular Redemption Date, the Company shall
 have given the Trustee irrevocable instructions to redeem such Securities on
 such date and to provide notice of such redemption to Holders as provided in
 or pursuant to this Indenture. 

 
	
  

 	
  

 
	
  

 	
           (g)
 Notwithstanding any other provisions of this Section 402(4), such defeasance
 or covenant defeasance shall be effected in compliance with any additional or
 substitute terms, conditions or limitations which may be imposed on the
 Company in connection therewith pursuant to Section 301. 

 

           (5) Subject
 to the provisions of the last paragraph of Section 1003, all money and
 Government Obligations (or other property as may be provided pursuant to
 Section 301) (including the proceeds thereof) deposited with the Trustee (or
 other qualifying trustee—collectively for purposes of this Section 402(5) and
 Section 403, the “Trustee”) pursuant to clause (4)(a) of Section 402 in
 respect of any Outstanding Securities of any series and any Coupons
 appertaining thereto shall be held in trust and applied by the Trustee, in
 accordance with the provisions of such Securities and any Coupons
 appertaining thereto and this Indenture, to the payment, either directly or
 through any Paying Agent (other than the Company or any Subsidiary or
 Affiliate of the Company acting as Paying Agent) as the Trustee may
 determine, to the Holders of such Securities and any Coupons appertaining
 thereto of all sums due and to become due thereon in respect of principal
 (and premium, if any) and interest and Additional Amounts, if any, but such
 money need not be segregated from other funds except to the extent required
 by law. 

          Unless
otherwise specified in or pursuant to this Indenture or any Securities, if,
after a deposit referred to in Section 402(4)(a) has been made, (a) the Holder
of a Security in respect of which such deposit was made is entitled to, and
does, elect pursuant to Section 301 or the terms of such Security to receive
payment in a Currency other than that in which the deposit pursuant 

40

to Section
402(4)(a) has been made in respect of such Security, or (b) a Conversion Event
occurs in respect of the Foreign Currency in which the deposit pursuant to
Section 402(4)(a) has been made, the indebtedness represented by such Security
and any Coupons appertaining thereto shall be deemed to have been, and will be,
fully discharged and satisfied through the payment of the principal of (and
premium, if any), and interest, if any, on, and Additional Amounts, if any,
with respect to, such Security as the same becomes due out of the proceeds
yielded by converting (from time to time as specified below in the case of any
such election) the amount or other property deposited in respect of such
Security into the Currency in which such Security becomes payable as a result
of such election or Conversion Event based on (x) in the case of payments made
pursuant to clause (a) above, the applicable market exchange rate for such
Currency in effect on the second Business Day prior to each payment date, or
(y) with respect to a Conversion Event, the applicable market exchange rate for
such Foreign Currency in effect (as nearly as feasible) at the time of the
Conversion Event. 

          The
Company shall pay and indemnify the Trustee against any tax, fee or other
charge, imposed on or assessed against the Government Obligations deposited
pursuant to this Section 402 or the principal or interest received in respect
thereof other than any such tax, fee or other charge which by law is for the
account of the Holders of such Outstanding Securities and any Coupons
appertaining thereto. 

          Anything
in this Section 402 to the contrary notwithstanding, the Trustee shall deliver
or pay to the Company from time to time upon Company Request any money or
Government Obligations (or other property and any proceeds therefrom) held by
it as provided in clause (4)(a) of this Section 402 which, in the opinion of a
nationally recognized firm of independent public accountants expressed in a
written certification thereof delivered to the Trustee, are in excess of the
amount thereof which would then be required to be deposited to effect a
defeasance or covenant defeasance, as applicable, in accordance with this
Section 402. 

          Section
403. Application of Trust Money. 

          Subject
to the provisions of the last paragraph of Section 1003, all money and Government
Obligations deposited with the Trustee pursuant to Section 401 or Section 402
shall be held in trust and applied by it, in accordance with the provisions of
the Securities, the Coupons and this Indenture, to the payment, either directly
or through any Paying Agent (including the Company acting as its own Paying
Agent) as the Trustee may determine, to the Persons entitled thereto, of the
principal, premium, interest and Additional Amounts for whose payment such
money has or Government Obligations have been deposited with or received by the
Trustee; but such money and Government Obligations need not be segregated from
other funds except to the extent required by law. 

          Section
404. Reinstatement. 

          If
the Trustee (or other qualifying trustee appointed pursuant to Section
402(4)(a)) or any Paying Agent is unable to apply any moneys or Government
Obligations deposited pursuant to Section 401(1) or Section 402(4)(a) to pay
any principal of or premium, if any, or interest, if any, on or Additional
Amounts, if any, with respect to the Securities of the applicable series by
reason of any legal proceeding or any order or judgment of any court or
governmental authority 

41

enjoining,
restraining or otherwise prohibiting such application, then the Company’s
obligations under this Indenture and the Securities of such series shall be
revived and reinstated as though no such deposit had occurred, until such time
as the Trustee (or other qualifying trustee) or Paying Agent is permitted to
apply all such moneys and Government Obligations to pay the principal of and
premium, if any, and interest, if any, on and Additional Amounts, if any, in
respect of the Securities of such series as contemplated by Section 401 or
Section 402 as the case may be, and Section 403; provided, however, that if the
Company makes any payment of the principal of or premium, if any, or interest
if any, on or Additional Amounts, if any, in respect of the Securities of such
series following the reinstatement of its obligations as aforesaid, the Company
shall be subrogated to the rights of the Holders of such Securities to receive
such payment from the funds held by the Trustee (or other qualifying trustee)
or Paying Agent. 

ARTICLE FIVE

REMEDIES

          Section
501. Events of Default. 

          “Event
of Default”, wherever used herein with respect to Securities of any series,
means any one of the following events (whatever the reason for such Event of
Default and whether it shall be voluntary or involuntary or be effected by
operation of law or pursuant to any judgment, decree or order of any court or
any order, rule or regulation of any administrative or governmental body)
unless such event is specifically deleted or modified in or pursuant to the
supplemental indenture, Board Resolution or Officers’ Certificate establishing
the terms of such series pursuant to this Indenture: 

          (1)
default in the payment of any interest, if any, on, or any Additional Amounts,
if any, payable in respect of any interest, if any, on, any of the Securities
of such series or any Coupon appertaining thereto when such interest or such
Additional Amounts, as the case may be, become due and payable, and continuance
of such default for a period of 30 days; or 

          (2)
default in the payment of any principal of or premium, if any, on, or any Additional
Amounts, if any, payable in respect of any principal of or premium, if any, on,
any of the Securities of such series when due (whether at Maturity or otherwise
and whether payable in cash or in Common Shares or other securities or
property); or 

          (3)
default in the deposit of any sinking fund payment or payment under any
analogous provision when due with respect to any of the Securities of such
series; or 

          (4)
default in the delivery when due of any securities, cash or other property
(including, without limitation, any Common Shares) when required to be
delivered upon conversion of any convertible Security of such series or upon
the exchange of any Security of such series which is exchangeable for Common
Shares or other securities or property (other than an exchange of Securities of
such series for other Securities of the same series); or 

          (5)
default in the performance, or breach, of any covenant or warranty applicable
to the Company in this Indenture or any Security of such series (other than a
covenant or warranty 

42

for which the
consequences of breach or nonperformance are addressed elsewhere in this
Section 501 or a covenant or warranty which has expressly been included in this
Indenture, whether or not by means of a supplemental indenture, solely for the
benefit of Securities of a series other than such series), and continuance of
such default or breach (without such default or breach having been cured or
waived in accordance of the provisions of this Indenture) for a period of 60
days after there has been given, by registered or certified mail, to the
Company by the Trustee or to the Company and the Trustee by the Holders of at
least 25% in aggregate principal amount of the Outstanding Securities of such
series a written notice specifying such default or breach and requiring it to
be remedied and stating that such notice is a “Notice of Default” hereunder; or

          (6)
default after the expiration of any applicable grace period in the payment of
principal when due, or resulting in acceleration of, other indebtedness (other
than Non-recourse Debt) of the Company or any Significant Subsidiary of the
Company for borrowed money where the aggregate principal amount with respect to
which the default or acceleration has occurred exceeds $60,0 million and such
indebtedness has not been discharged, or such default in payment or
acceleration has not been cured or rescinded, prior to written notice of
acceleration of the Outstanding Securities of such series; or 

          (7)
failure by the Company or any of its Subsidiaries to pay final judgments or
decree entered by a court or courts of competent jurisdiction aggregating in
excess of $60.0 million, which judgments are not paid, discharged or stayed for
a period of 30 days after such judgments become final and non-appealable; or 

          (8)
the Company or any Significant Subsidiary of the Company pursuant to or under
or within the meaning of any Bankruptcy Law: 

	
  

 	
  

 
	
  

 	
           (i)
 commences a voluntary case or proceeding seeking liquidation, reorganization
 or other relief with respect to it or its debts or seeking the appointment of
 a trustee, receiver, liquidator, custodian or other similar official of it or
 any substantial part of its property; or 

 
	
  

 	
  

 
	
  

 	
           (ii)
 consents to any such relief or to the appointment of or taking possession by
 any such official in an involuntary case or other proceeding commenced
 against it; or 

 
	
  

 	
  

 
	
  

 	
           (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 creditors; or 

 

          (9)
an involuntary case or other proceeding shall be commenced against the Company
or any Significant Subsidiary of the Company seeking liquidation,
reorganization or other relief with respect to it or its debts under any
bankruptcy, insolvency or other similar law now or hereafter in effect or
seeking the appointment of a trustee, receiver, liquidator, custodian or other
similar official of it or any substantial part of its property, and such
involuntary case or other proceeding shall remain undismissed and unstayed for
a period of 60 days; or 

43

          (10)
a court of competent jurisdiction enters an order or decree under any
Bankruptcy Law that: 

	
  

 	
  

 
	
  

 	
           (i)
 is for relief against the Company or any Significant Subsidiary of the Company
 in an involuntary case or proceeding; or 

 
	
  

 	
  

 
	
  

 	
           (ii)
 appoints a trustee, receiver, liquidator, custodian or other similar official
 of the Company or any Significant Subsidiary of the Company or any
 substantial part of their respective properties; or 

 
	
  

 	
  

 
	
  

 	
           (iii)
 orders the liquidation of the Company or any Significant Subsidiary of the
 Company; 

 

and, in each
case in this clause (11), the order or decree remains unstayed and in effect
for 60 days; or 

          (11)
any other Event of Default provided in or pursuant to this Indenture with
respect to Securities of such series. 

          Section
502. Acceleration of Maturity; Rescission
and Annulment. 

          If
an Event of Default (other than an Event of Default specified in clauses (8),
(9) or (10) of Section 501 with respect to the Company) occurs and is
continuing with respect to Securities of any series, then either the Trustee or
the Holders of not less than 25% in aggregate principal amount of the
Outstanding Securities of such series may declare the principal of all the
Securities of such series, or such lesser amount as may be provided for in the
Securities of such series, and accrued and unpaid interest, if any, thereon to
be due and payable immediately, by a notice in writing to the Company (and to
the Trustee if given by the Holders), and upon any such declaration such
principal or such lesser amount, as the case may be, and such accrued and
unpaid interest shall become immediately due and payable. If an Event of
Default specified in clause (8), (9) or (10) of Section 501 with respect to the
Company occurs with respect to the Securities of any series, then the principal
of all of the Securities of such series, or such lesser amount as may be
provided for in the Securities of such series, and accrued an unpaid interest,
if any, thereon shall ipso facto become and be immediately due and payable
without any declaration or other act on the part of the Trustee or any Holder
of the Securities of such series. For purposes of clarity, the parties hereto
agree that references in this Indenture to an Event of Default specified in
clauses (8), (9) or (10) of Section 501 with respect to the Company shall not
include any Event of Default specified in clauses (8), (9) or (10) of Section
501 with respect to any Significant Subsidiary of the Company.  

          At
any time after Securities of any series have been accelerated (whether by
declaration of the Trustee or the Holders or automatically) and before a
judgment or decree for payment of the money due has been obtained by the
Trustee as hereinafter in this Article provided, the Holders of not less than a
majority in aggregate principal amount of the Outstanding Securities of such
series, by written notice to the Company and the Trustee, may rescind and annul
such declaration and its consequences if 

44

          (1)
the Company has paid or deposited with the Trustee a sum of money sufficient to
pay (or, to the extent that the terms of the Securities of such series
established pursuant to Section 301 expressly provide for payment to be made in
Common Shares or other securities or property, Common Shares or other
securities or property, together with cash in lieu of fractional shares or
securities to the extent required pursuant to the terms of such Securities,
sufficient to pay) 

	
  

 	
  

 
	
  

 	
           (a)
 all overdue installments of any interest on any Securities of such series and
 any Coupons appertaining thereto which have become due otherwise than by such
 declaration of acceleration and any Additional Amounts with respect thereto, 

 
	
  

 	
  

 
	
  

 	
           (b)
 the principal of and any premium on any Securities of such series which have
 become due otherwise than by such declaration of acceleration and any
 Additional Amounts with respect thereto and, to the extent permitted by
 applicable law, interest thereon at the rate or respective rates, as the case
 may be, provided for in or with respect to such Securities, or, if no such
 rate or rates are so provided, at the rate or respective rates, as the case
 may be, of interest borne by such Securities, 

 
	
  

 	
  

 
	
  

 	
           (c)
 to the extent permitted by applicable law, interest upon installments of any
 interest, if any, which have become due otherwise than by such declaration of
 acceleration and any Additional Amounts with respect thereto at the rate or
 respective rates, as the case may be, provided for in or with respect to such
 Securities, or, if no such rate or rates are so provided, at the rate or
 respective rates, as the case may be, of interest borne by such Securities,
 and 

 
	
  

 	
  

 
	
  

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

 

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

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

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

          The
Company covenants that if: 

          (1)
default is made in the payment of any interest on, or any Additional Amounts
payable in respect of any interest on, any Security or any Coupon appertaining
thereto when such interest or Additional Amounts, as the case may be, shall
have become due and payable and such default continues for a period of 30 days,
or 

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

45

          (3)
default is made in the deposit of any sinking fund payment when due, then the
Company shall, upon demand of the Trustee, pay to the Trustee, for the benefit
of the Holders of such Securities and any Coupons appertaining thereto, the
whole amount of money then due and payable with respect to such Securities and
any Coupons appertaining thereto, with interest upon the overdue principal, any
premium and, to the extent permitted by applicable law, upon any overdue
installments of interest and Additional Amounts at the rate or respective
rates, as the case may be, provided for or with respect to such Securities or,
if no such rate or rates are so provided, at the rate or respective rates, as
the case may be, of interest borne by such Securities, and, in addition
thereto, such further amount of money as shall be sufficient to cover the costs
and expenses of collection, including the reasonable compensation, expenses,
disbursements and advances of the Trustee, its agents and counsel and all other
amounts due to the Trustee under Section 606. 

          If
the Company fails to pay the money it is required to pay the Trustee pursuant
to the preceding paragraph forthwith upon the demand of the Trustee, the
Trustee, in its own name and as trustee of an express trust, may institute a
judicial proceeding for the collection of the money so due and unpaid, and may
prosecute such proceeding to judgment or final decree, and may enforce the same
against the Company or any other obligor upon such Securities and any Coupons
appertaining thereto and collect the monies adjudged or decreed to be payable
in the manner provided by law out of the property of the Company or any other
obligor upon such Securities and any Coupons appertaining thereto, wherever
situated. 

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

          Section
504. Trustee May File Proofs of Claim. 

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

          (1)
to file and prove a claim for the whole amount, or such lesser amount as may be
provided for in the Securities of such series, of the principal and any premium,
interest and Additional Amounts owing and unpaid in respect of the Securities
and any Coupons appertaining thereto and to file such other papers or documents
as may be necessary or advisable in order to have the claims of the Trustee
(including any claim for the reasonable compensation, expenses, 

46

disbursements
and advances of the Trustee, its agents or counsel) and of the Holders of
Securities or any Coupons allowed in such judicial proceeding, and 

          (2)
to collect and receive any monies or other property payable or deliverable on
any such claims and to distribute the same; 

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

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

          Section
505. Trustee May Enforce Claims without
Possession of Securities or Coupons. 

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

          Section
506. Application of Money Collected. 

          Any
money collected by the Trustee pursuant to this Article with respect to the
Securities of any series shall be applied in the following order, at the date
or dates fixed by the Trustee and, in case of the distribution of such money on
account of principal, or any premium, interest or Additional Amounts, upon
presentation of such Securities or the Coupons, if any, appertaining thereto,
or both, as the case may be, and the notation thereon of the payment if only
partially paid and upon surrender thereof if fully paid: 

	
  

 	
  

 
	
  

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

 
	
  

 	
  

 
	
  

 	
           SECOND:
 To the payment of the amounts then due and unpaid upon the Securities and any
 Coupons for principal and any premium, interest and Additional Amounts in
 respect of which or for the benefit of which such money has been collected,
 ratably, without preference or priority of any kind, according to the
 aggregate amounts 

 

47

	
  

 	
  

 
	
  

 	
 due and
 payable on such Securities and Coupons for principal and any premium,
 interest and Additional Amounts; 

 
	
  

 	
  

 
	
  

 	
           THIRD:
 The balance, if any, to the Person or Persons entitled thereto. 

 

          Section
507. Limitations on Suits. 

          No
Holder of any Security of any series or any Coupons appertaining thereto shall
have any right to institute any proceeding, judicial or otherwise, with respect
to this Indenture, or for the appointment of a receiver or trustee, or for any
other remedy hereunder, unless 

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

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

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

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

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

it being
understood and intended and being expressly covenanted by the taker and holder
of every Security, with every other taker and holder with the Trustee that no
one or more of such Holders shall have any right in any manner whatever by
virtue of, or by availing of, any provision of this Indenture or any Security
to affect, disturb or prejudice the rights of any other such Holders or Holders
of Securities of any other series, or to obtain or to seek to obtain priority
or preference over any other Holders or to enforce any right under this
Indenture, except in the manner herein provided and for the equal and ratable
benefit of all such Holders (it being understood that the Trustee does not have
an affirmative duty to ascertain whether or not such actions or forbearances
are unduly prejudicial to such Holders). 

	
  

 	
  

 	
  

 
	
 Section 508. Unconditional Right of Holders to Receive Principal and any Premium,
 Interest and Additional Amounts. 

 

          Notwithstanding
any other provision in this Indenture, the Holder of any Security or Coupon
shall have the right, which is absolute and unconditional, to receive payment
of the principal of, any premium, if any, and (subject to Section 305 and
Section 307) interest, if any, on and any Additional Amounts with respect to
such Security or such Coupon, as the case may be, on the respective Stated
Maturity or Maturities therefor specified in such Security or Coupon (or, in
the case of redemption, on the Redemption Date or, in the case of repayment
pursuant to 

48

Article
Thirteen hereof at the option of such Holder if provided in or pursuant to this
Indenture, on the date such repayment is due) and, in the case of any Security
which is convertible into or exchangeable for other securities or property, to
convert or exchange, as the case may be, such Security in accordance with its
terms, and to institute suit for the enforcement of any such payment and any
such right to convert or exchange, and such right shall not be impaired without
the consent of such Holder. 

          Section
509. Restoration of Rights and Remedies. 

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

          Section
510. Rights and Remedies Cumulative. 

          To
the extent permitted by applicable law and except as otherwise provided with
respect to the replacement or payment of mutilated, destroyed, lost or stolen
Securities or Coupons in the last paragraph of Section 306, no right or remedy
herein conferred upon or reserved to the Trustee or to each and every Holder of
a Security or a Coupon is intended to be exclusive of any other right or
remedy, and every right and remedy, to the extent permitted by law, shall be
cumulative and in addition to every other right and remedy given hereunder or
now or hereafter existing at law or in equity or otherwise. The assertion or
employment of any right or remedy hereunder, or otherwise, shall not, to the
extent permitted by law, prevent the concurrent assertion or employment of any
other appropriate right or remedy. 

          Section
511. Delay or Omission Not Waiver. 

          No
delay or omission of the Trustee or of any Holder of any Security or Coupon to
exercise any right or remedy accruing upon any Event of Default shall, to the
extent permitted by applicable law, impair any such right or remedy or
constitute a waiver of any such Event of Default or an acquiescence therein.
Every right and remedy given by this Article or by law to the Trustee or to any
Holder of a Security or a Coupon may, to the extent permitted by applicable
law, be exercised from time to time, and as often as may be deemed expedient,
by the Trustee or by such Holder, as the case may be. 

          Section
512. Control by Holders of Securities. 

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

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

49

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

          (3)
such direction is not unduly prejudicial to the rights of the other Holders of
Securities of such series not joining in such action. 

          Section
513. Waiver of Past Defaults. 

          The
Holders of not less than a majority in aggregate principal amount of the
Outstanding Securities of any series on behalf of the Holders of all the
Securities of such series and any Coupons appertaining thereto may waive any
past default hereunder with respect to such series and its consequences, except

          (1)
a default in the payment of the principal of, any premium or interest on, or
any Additional Amounts with respect to, any Security of such series or any
Coupons appertaining thereto, or 

          (2)
in the case of any Securities which are convertible into or exchangeable for
Common Shares or other securities or property, a default in any such conversion
or exchange, or 

          (3)
a default in respect of a covenant or provision hereof which under Article Nine
cannot be modified or amended without the consent of the Holder of each
Outstanding Security of such series affected. 

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

          Section
514. Waiver of Usury, Stay or Extension
Laws. 

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

          Section
515. Undertaking for Costs. 

          All
parties to this Indenture agree, and each Holder of any Security by his
acceptance thereof shall be deemed to have agreed, that any court may in its
discretion require, in any suit for the enforcement of any right or remedy
under this Indenture, or in any suit against the Trustee for any action taken
or omitted to be taken by it as Trustee, the filing by any party litigant in
such 

50

suit of any
undertaking to pay the costs of such suit, and that such court may in its
discretion assess reasonable costs, including reasonable attorneys’ fees and
disbursements, 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 515 shall not apply to any suit instituted
by the Trustee, to any suit instituted by any Holder, or group of Holders,
holding in the aggregate more than 10% in principal amount of Outstanding
Securities of any series, or to any suit instituted by any Holder for the
enforcement of the payment of the principal of (or premium, if any) or
interest, if any, on or Additional Amounts, if any, with respect to any
Security on or after the respective Stated Maturities expressed in such
Security (or, in the case of redemption, on or after the Redemption Date, and,
in the case of repayment at the option of the Holder pursuant to Article
Thirteen hereof, on or after the date for repayment) or for the enforcement of
the right, if any, to convert or exchange any Security into Common Shares or
other securities in accordance with its terms. 

ARTICLE SIX

THE TRUSTEE

          Section
601. Certain Rights of Trustee. 

          Subject
to Sections 315(a) through 315(d) of the Trust Indenture Act: 

          (1)
the Trustee may conclusively rely and shall be protected in acting or
refraining from acting upon any resolution, certificate, statement, instrument,
opinion, report, notice, request, direction, consent, order, bond, debenture,
note, coupon or other paper or document reasonably believed by it to be genuine
and to have been signed or presented by the proper party or parties; 

          (2)
any request or direction of the Company mentioned herein shall be sufficiently
evidenced by a Company Request or a Company Order (in each case, other than
delivery of any Security, together with any Coupons appertaining thereto, to
the Trustee for authentication and delivery pursuant to Section 303 which shall
be sufficiently evidenced as provided therein) and any resolution of the Board
of Directors may be sufficiently evidenced by a Board Resolution; 

          (3)
whenever in the administration of this Indenture the Trustee shall deem it
desirable that a matter be proved or established prior to taking, suffering or
omitting any action hereunder, the Trustee (unless other evidence shall be
herein specifically prescribed) may, in the absence of bad faith on its part,
rely upon an Officers’ Certificate; 

          (4)
the Trustee may consult with counsel of its selection and the advice of such counsel
or any Opinion of Counsel shall be full and complete authorization and
protection in respect of any action taken, suffered or omitted by it hereunder
in good faith and in reliance thereon; 

          (5)
the Trustee shall be under no obligation to exercise any of the rights or
powers vested in it by or pursuant to this Indenture at the request or
direction of any of the Holders of Securities of any series or any Coupons
appertaining thereto pursuant to this Indenture, unless 

51

such Holders
shall have offered to the Trustee security or indemnity reasonably satisfactory
to the Trustee against the costs, fees and expenses and liabilities which might
be incurred by it in compliance with such request or direction; 

          (6)
the Trustee shall not be bound to make any investigation into the facts or
matters stated in any resolution, certificate, statement, instrument, opinion,
report, notice, request, direction, consent, order, bond, debenture, coupon or
other paper or document, but the Trustee, in its discretion, may make such
further inquiry or investigation into such facts or matters as it may see fit,
and, if the Trustee shall determine to make such further inquiry or
investigation, it shall be entitled to examine, during business hours and upon reasonable
notice, the books, records and premises of the Company, personally or by agent
or attorney; 

          (7)
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; 

          (8)
the Trustee undertakes to perform such duties and only such duties as are
specifically set forth in this Indenture, and no implied covenants or
obligations shall be read into this Indenture against the Trustee; 

          (9)
in the absence of bad faith on its part, the Trustee may conclusively rely, as
to the truth of the statements and the correctness of the opinions expressed
therein, upon certificates or opinions furnished to the Trustee and conforming
to the requirements of this Indenture; but in the case of any such certificates
or opinions which by any provision hereof are specifically required to be
furnished to the Trustee, the Trustee shall be under a duty to examine the same
to determine whether or not they conform to the requirements of this Indenture
(but need not confirm or investigate the accuracy of mathematical calculations
or other facts stated therein); 

          (10)
no provision of this Indenture shall require the Trustee to expend or risk its
own funds or otherwise incur any financial liability in the performance of any
of its duties hereunder, or in the exercise of any of its rights or powers, if
it shall have reasonable grounds for believing that repayment of such funds or
adequate indemnity against such risk or liability is not reasonably assured to
it; 

          (11)
the Trustee shall not be liable for any action taken, suffered, or omitted to
be taken by it in good faith and reasonably believed by it to be authorized or
within the discretion or rights or powers conferred upon it by this Indenture; 

          (12)
in no event shall the Trustee be responsible or liable for special, indirect,
punitive 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; 

          (13)
the Trustee shall not be deemed to have notice of any default or Event of
Default unless a Responsible Officer of the Trustee has actual knowledge
thereof or unless written notice of any event which is in fact such a default
is received by the Trustee at the Corporate Trust Office of the Trustee, and
such notice references the Securities and this Indenture; 

52

          (14)
the rights, privileges, protections, immunities and benefits given to the
Trustee, including, without limitation, its right to be indemnified, are
extended to, and shall be enforceable by, the Trustee in each of its capacities
hereunder, and each agent, custodian and other Person employed to act
hereunder; 

          (15)
the Trustee shall not be required to give any bond or surety in respect of the
performance of its powers and duties hereunder; and 

          (16)
the Trustee may request that the Company deliver a certificate setting forth
the names of individuals and/or titles of officers authorized at such time to
take specified actions pursuant to this Indenture. 

          Section
602. Notice of Defaults. 

          Within
90 days after the occurrence of any default hereunder with respect to the
Securities of any series, the Trustee shall transmit by mail to all Holders of
Securities of such series entitled to receive reports pursuant to Section
703(3), notice of such default hereunder known to the Trustee, unless such
default shall have been cured or waived; provided, however, that, except in the
case of a default in the payment of the principal of (or premium, if any), or
interest, if any, on, or Additional Amounts or any sinking fund installment
with respect to, any Security of such series, the Trustee shall be protected in
withholding such notice if and so long as the board of directors, the executive
committee or a trust committee of directors and/or Responsible Officers of the
Trustee in good faith determine that the withholding of such notice is in the
best interest of the Holders of Securities and Coupons of such series; and
provided, further, that in the case of any default of the character specified
in Section 501(5) or Section 501(11) with respect to Securities of such series,
no such notice to Holders shall be given until at least 30 days after the
occurrence thereof. For the purpose of this Section, the term “default” means
any event which is, or after notice or lapse of time or both would become, an
Event of Default with respect to Securities of such series. 

          Section
603. Not Responsible for Recitals or
Issuance of Securities. 

          The
recitals contained herein and in the Securities, except the Trustee’s
certificate of authentication, and in any Coupons shall be taken as the
statements of the Company and neither the Trustee nor any Authenticating Agent
assumes any responsibility for their correctness. The Trustee makes no
representations as to the validity or sufficiency of this Indenture or of the
Securities or the Coupons, except that the Trustee represents that it is duly
authorized to execute and deliver this Indenture, authenticate the Securities
and perform its obligations hereunder and that the statements made by it in a
Statement of Eligibility on Form T-1 supplied to the Company are true and
accurate, subject to the qualifications set forth therein. Neither the Trustee
nor any Authenticating Agent shall be accountable for the use or application by
the Company of the Securities or the proceeds thereof. 

          Section
604. May Hold Securities. 

          The
Trustee, any Authenticating Agent, any Paying Agent, any Security Registrar or
any other Person that may be an agent of the Trustee or the Company, in its
individual or any other capacity, may become the owner or pledgee of Securities
or Coupons and, subject to 

53

Sections
310(b) and 311 of the Trust Indenture Act, may otherwise deal with the Company
with the same rights it would have if it were not Trustee, Authenticating
Agent, Paying Agent, Security Registrar or such other Person. 

          Section
605. Money Held in Trust. 

          Except
as provided in Section 403 and Section 1003, money held by the Trustee in trust
hereunder need not be segregated from other funds except to the extent required
by law and shall be held uninvested. The Trustee shall be under no liability
for interest on any money received by it hereunder except as otherwise agreed
in writing with the Company. 

          Section
606. Compensation and Reimbursement. 

          The
Company agrees: 

          (1)
to pay to the Trustee from time to time such compensation as shall be agreed in
writing between the Company and the Trustee for all services rendered by the
Trustee hereunder (which compensation shall not be limited by any provision of
law in regard to the compensation of a trustee of an express trust); 

          (2)
except as otherwise expressly provided herein, to reimburse the Trustee upon
its request for all reasonable expenses, disbursements and advances incurred or
made by the Trustee in accordance with any provision of this Indenture
(including the reasonable compensation and the expenses and disbursements of
its agents and counsel), except any such expense, disbursement or advance as
may be attributable to the Trustee’s negligence or willful misconduct; and 

          (3)
to indemnify each of the Trustee, or any predecessor Trustee, and its agents
for, and to hold them harmless against, any and all loss, liability, damage,
claim or reasonable expense (including, without limitation, the reasonable fees
and disbursements of the Trustee’s agents, legal counsel, accountants and
experts) incurred without negligence or willful misconduct on their part,
arising out of or in connection with the acceptance or administration of the
trust or trusts hereunder (whether asserted by the Company, a Holder or any
other Person), including the reasonable costs and expenses of defending
themselves against any claim or liability in connection with the exercise or
performance of any of their powers or duties hereunder, except to the extent
that any such loss, liability or expense was due to the Trustee’s negligence or
willful misconduct. 

          As
security for the performance of the obligations of the Company under this
Section, the Trustee shall have a lien prior to the Securities of any series
upon all property and funds held or collected by the Trustee as such, except
funds held in trust for the payment of principal of, or premium or interest on
or any Additional Amounts with respect to Securities or any Coupons
appertaining thereto. 

          Any
compensation or expense incurred by the Trustee after a default specified by
Section 501(8), (9) or(10) is intended to constitute an expense of
administration under any then applicable bankruptcy or insolvency law.
“Trustee” for purposes of this Section 606 shall include any predecessor
Trustee but the negligence or willful misconduct of any Trustee shall not 

54

affect the
rights of any other Trustee under this Section 606. The provisions of this
Section 606 shall, to the extent permitted by law, survive any termination of
this Indenture (including, without limitation, termination pursuant to any
Bankruptcy Laws) and the resignation or removal of the Trustee. 

          Section
607. Corporate Trustee Required;
Eligibility. 

          There
shall at all times be a Trustee hereunder that is a Corporation, organized and
doing business under the laws of the United States of America, any state
thereof or the District of Columbia, eligible under Section 310(a)(1) of the
Trust Indenture Act to act as trustee under an indenture qualified under the
Trust Indenture Act and that has a combined capital and surplus (computed in
accordance with Section 310(a)(2) of the Trust Indenture Act) of at least
$50,000,000 subject to supervision or examination by federal or state
authority. If at any time the Trustee shall cease to be eligible in accordance
with the provisions of this Section, it shall resign immediately in the manner
and with the effect hereinafter specified in this Article. 

          Section
608. Resignation and Removal; Appointment of
Successor. 

          (1)
No resignation or removal of the Trustee and no appointment of a successor
Trustee pursuant to this Article shall become effective until the acceptance of
appointment by the successor Trustee pursuant to Section 609. 

          (2)
The Trustee may resign at any time with respect to the Securities of one or
more series by giving written notice thereof to the Company. If the instrument
of acceptance by a successor Trustee required by Section 609 shall not have
been delivered to the Trustee within 30 days after the giving of such notice of
resignation, the resigning Trustee may petition, at the expense of the Company,
any court of competent jurisdiction for the appointment of a successor Trustee
with respect to such series. 

          (3)
The Trustee may be removed at any time with respect to the Securities of any
series by Act of the Holders of a majority in principal amount of the
Outstanding Securities of such series, delivered to the Trustee and the Company.
If an instrument of acceptance by a successor Trustee required by Section 609
shall not have been delivered to the Trustee within 30 days after the giving of
such notice of removal, the Trustee being removed may petition, at the expense
of the Company, any court of competent jurisdiction for the appointment of a
successor Trustee with respect to such series. 

          (4)
If at any time: 

	
  

 	
  

 
	
  

 	
           (a)
 the Trustee shall fail to comply with the obligations imposed upon it under
 Section 310(b) of the Trust Indenture Act with respect to Securities of any
 series after written request therefor by the Company or any Holder of a
 Security of such series who has been a bona fide Holder of a Security of such
 series for at least six months, or 

 
	
  

 	
  

 
	
  

 	
           (b)
 the Trustee shall cease to be eligible under Section 607 and shall fail to
 resign after written request therefor by the Company or any such Holder, or 

 

55

	
  

 	
  

 
	
  

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

 

then, in any
such case, (i) the Company, by or pursuant to a Board Resolution, may remove
the Trustee with respect to all Securities or the Securities of such series, or
(ii) subject to Section 315(e) of the Trust Indenture Act, any Holder of a
Security who has been a bona fide Holder of a Security of such series for at
least six months may, on behalf of himself and all others similarly situated,
petition any court of competent jurisdiction for the removal of the Trustee
with respect to all Securities of such series and the appointment of a
successor Trustee or Trustees. 

          (5)
If the Trustee shall resign, be removed or become incapable of acting, or if a
vacancy shall occur in the office of Trustee for any cause, with respect to the
Securities of one or more series, the Company, by or pursuant to a Board
Resolution, shall promptly appoint a successor Trustee or Trustees with respect
to the Securities of that or those series (it being understood that any such
successor Trustee may be appointed with respect to the Securities of one or
more or all of such series and that at any time there shall be only one Trustee
with respect to the Securities of any particular series) and shall comply with
the applicable requirements of Section 609. If, within one year after such resignation,
removal or incapability, or the occurrence of such vacancy, a successor Trustee
with respect to the Securities of any series shall be appointed by Act of the
Holders of a majority in principal amount of the Outstanding Securities of such
series delivered to the Company and the retiring Trustee, the successor Trustee
so appointed shall, forthwith upon its acceptance of such appointment in
accordance with the applicable requirements of Section 609, become the
successor Trustee with respect to the Securities of such series and to that
extent supersede the successor Trustee appointed by the Company. If no
successor Trustee with respect to the Securities of any series shall have been
so appointed by the Company or the Holders of Securities and accepted appointment
in the manner required by Section 609, any Holder of a Security who has been a
bona fide Holder of a Security of such series for at least six months may, on
behalf of himself and all others similarly situated, petition any court of
competent jurisdiction for the appointment of a successor Trustee with respect
to the Securities of such series. 

          (6)
The Company shall give notice of each resignation and each removal of the
Trustee with respect to the Securities of any series and each appointment of a
successor Trustee with respect to the Securities of any series by mailing
written notice of such event by first-class mail, postage prepaid, to the
Holders of Registered Securities, if any, of such series as their names and
addresses appear in the Security Register and, if Securities of such series are
issued as Bearer Securities, by publishing notice of such event once in an
Authorized Newspaper in each Place of Payment located outside the United
States. Each notice shall include the name of the successor Trustee with
respect to the Securities of such series and the address of its Corporate Trust
Office. 

56

          Section
609. Acceptance of Appointment by Successor.

          (1)
Upon the appointment hereunder of any successor Trustee with respect to all
Securities, such successor Trustee so appointed shall execute, acknowledge and
deliver to the Company and 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 hereunder of the retiring Trustee; but, on the request of the Company or
such successor Trustee, such retiring Trustee, upon payment of its charges,
shall execute and deliver an instrument transferring to such successor Trustee
all the rights, powers and trusts of the retiring Trustee and, subject to
Section 1003, shall duly assign, transfer and deliver to such successor Trustee
all property and money held by such retiring Trustee hereunder, subject
nevertheless to its claim, if any, provided for in Section 606. 

          (2)
Upon the appointment hereunder of any successor Trustee with respect to the Securities
of one or more (but not all) series, the Company, the retiring Trustee and such
successor Trustee shall execute and deliver an indenture supplemental hereto
wherein each successor Trustee shall accept such appointment and which (1)
shall contain such provisions as shall be necessary or desirable to transfer
and confirm to, and to vest in, such successor Trustee all the rights, powers,
trusts and duties of the retiring Trustee with respect to the Securities of
that or those series to which the appointment of such successor Trustee
relates, (2) if the retiring Trustee is not retiring with respect to all
Securities, shall contain such provisions as shall be deemed necessary or
desirable to confirm that all the rights, powers, trusts and duties of the
retiring Trustee with respect to the Securities of that or those series as to
which the retiring Trustee is not retiring shall continue to be vested in the
retiring Trustee, and (3) shall add to or change any of the provisions of this
Indenture as shall be necessary to provide for or facilitate the administration
of the trusts hereunder by more than one Trustee, it being understood that
nothing herein or in such supplemental indenture shall constitute such Trustees
co-trustees of the same trust, 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 notice given to, or received by, or 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 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 with respect to the Securities of that or those series to which
the appointment of such successor Trustee relates other than as hereinafter
expressly set forth, 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 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 such successor Trustee, such retiring Trustee, upon
payment of its charges with respect to the Securities of that or those series
to which the appointment of such successor relates and subject to Section 1003
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,
subject to its claim, if any, provided for in Section 606. 

57

          (3)
Upon request of any Person appointed hereunder as a 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 (1) or (2) of this Section, as the case may be.

          (4)
No Person shall accept its appointment hereunder as a successor Trustee unless
at the time of such acceptance such successor Person shall be qualified and
eligible under this Article. 

          Section
610. 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 all or substantially all of the corporate trust business of the
Trustee, shall be the successor of the Trustee hereunder (provided that such
Corporation shall otherwise be qualified and eligible under this Article), without
the execution or filing of any paper or any further act on the part of any of
the parties hereto. In case any Securities shall have been authenticated but
not delivered by the Trustee then in office, any such successor 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. In case any Securities shall not have been
authenticated by such predecessor Trustee, any such successor Trustee may
authenticate and deliver such Securities in either its own name or that of its
predecessor Trustee. 

          Section
611. Appointment of Authenticating Agent. 

          The
Trustee may appoint one or more Authenticating Agents acceptable to the Company
with respect to one or more series of Securities which shall be authorized to
act on behalf of the Trustee to authenticate Securities of that or those series
issued upon original issue, exchange, registration of transfer, partial
redemption, partial repayment, partial conversion or exchange for Common Shares
or other securities or property, or pursuant to Section 306, 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. Wherever reference is made in this Indenture to the authentication
and delivery of Securities by the Trustee or the Trustee’s certificate of
authentication, such reference shall be deemed to include authentication and
delivery on behalf of the Trustee by an Authenticating Agent and a certificate
of authentication executed on behalf of the Trustee by an Authenticating Agent.

          Each
Authenticating Agent shall be acceptable to the Company and, except as provided
in or pursuant to this Indenture, shall at all times be a Corporation that
would be permitted by the Trust Indenture Act to act as trustee under an
indenture qualified under the Trust Indenture Act, is authorized under applicable
law and by its charter to act as an Authenticating Agent and has a combined
capital and surplus (computed in accordance with Section 310(a)(2) of the Trust
Indenture Act) of at least $50,000,000. If at any time an Authenticating Agent
shall cease to be eligible in accordance with the provisions of this Section,
it shall resign immediately in the manner and with the effect specified in this
Section. 

58

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

          An
Authenticating Agent may resign at any time by giving written notice thereof to
the Trustee and the Company. The Trustee may at any time terminate the agency
of an Authenticating Agent by giving written notice thereof to such
Authenticating Agent and the Company. Upon receiving such a notice of
resignation or upon such a termination, or in case at any time such
Authenticating Agent shall cease to be eligible in accordance with the
provisions of this Section, the Trustee may appoint a successor Authenticating
Agent which shall be acceptable to the Company and shall (i) mail written
notice of such appointment by first-class mail, postage prepaid, to all Holders
of Registered Securities, if any, of the series with respect to which such
Authenticating Agent shall serve, as their names and addresses appear in the
Security Register, and (ii) if Securities of the series are issued as Bearer
Securities, publish notice of such appointment at least once in an Authorized Newspaper
in the place where such successor Authenticating Agent has its principal office
if such office is located outside the United States. Any successor
Authenticating Agent, upon acceptance of its appointment hereunder, shall
become vested with all the rights, powers and duties of its predecessor
hereunder, with like effect as if originally named as an Authenticating Agent.
No successor Authenticating Agent shall be appointed unless eligible under the
provisions of this Section. 

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

          The
provisions of Section 308, Section 603 and Section 604 shall be applicable to
each Authenticating Agent. 

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

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

	
  
 	
  
 	
  
 
	
  
 	
 WELLS FARGO
 BANK, NATIONAL ASSOCIATION,
 
	
  
 	
 As Trustee 
 
	
  
 	
  
 	
  
 
	
  
 	
 By: 
 	
  
 
	
  
 	
  
 	

 
 
	
  
 	
  
 	
 As
 Authenticating Agent
 
	 	 	 
	
  
 	
 By: 
 	
  
 
	
  
 	
  
 	

 
 
	
  
 	
  
 	
 Authorized
 Signatory
 

59

          If
all of the Securities of any series may not be originally issued at one time,
and if the Trustee does not have an office capable of authenticating Securities
upon original issuance located in a Place of Payment where the Company wishes
to have Securities of such series authenticated upon original issuance, the
Trustee, if so requested in writing (which writing need not be accompanied by
or contained in an Officers’ Certificate of the Company), shall appoint in
accordance with this Section an Authenticating Agent having an office in a
Place of Payment designated by the Company with respect to such series of
Securities. 

ARTICLE SEVEN

HOLDERS LISTS AND REPORTS BY TRUSTEE AND
COMPANY

          Section
701. Company to Furnish Trustee Names and
Addresses of Holders. 

          In
accordance with Section 312(a) of the Trust Indenture Act, the Company shall
furnish or cause to be furnished to the Trustee 

          (1)
semi-annually with respect to Securities of each series not later than 15 days
after each Regular Record Date or upon such other dates as are set forth in or
pursuant to the Board Resolution or indenture supplemental hereto authorizing
such series, a list, in each case in such form as the Trustee may reasonably
require, of the names and addresses of Holders as of the applicable date, and 

          (2)
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 so long as the Trustee is the Security Registrar no such list
shall be required to be furnished. 

          Section
702. Preservation of Information;
Communications to Holders. 

          The
Trustee shall comply with the obligations imposed upon it pursuant to Section
312 of the Trust Indenture Act. 

          Every
Holder of Securities or Coupons, by receiving and holding the same, agrees with
the Company and the Trustee that none of the Company, the Trustee, any Paying
Agent or any Security Registrar shall be held accountable by reason of the
disclosure of any such information as to the names and addresses of the Holders
of Securities in accordance with Section 312(c) of the Trust Indenture Act,
regardless of the source from which such information was derived, and that the
Trustee shall not be held accountable by reason of mailing any material
pursuant to a request made under Section 312(b) of the Trust Indenture Act. 

60

          Section
703. Reports by Trustee. 

          (1)
Within 60 days after May 15 of each year commencing with the first May 15
following the first issuance of Securities pursuant to Section 301, if required
by Section 313(a) of the Trust Indenture Act, the Trustee shall transmit,
pursuant to Section 313(c) of the Trust Indenture Act, a brief report dated as
of such May 15 with respect to any of the events specified in said Sections
313(a) and 313(b)(2) which may have occurred since the later of the immediately
preceding May 15 and the date of this Indenture. 

          (2)
The Trustee shall transmit the reports required by Section 313(a) of the Trust
Indenture Act at the times specified therein. 

          (3)
Reports pursuant to this Section shall be transmitted in the manner and to the
Persons required by Sections 313(c) and 313(d) of the Trust Indenture Act. 

          (4)
A copy of each such report shall, at the time of such transmission to Holders,
be filed by the Trustee with each stock exchange, if any, upon which the
Securities are listed, with the Commission and with the Company. The Company
will promptly notify the Trustee in writing when the Securities are listed on
any stock exchange and of any delisting thereof. 

          Section
704. Reports by Company. 

          The
Company, pursuant to Section 314(a) of the Trust Indenture Act, shall: 

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

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

          (3)
transmit within 30 days after the filing thereof with the Trustee, in the
manner and to the extent provided in Section 313(c) of the Trust Indenture Act,
such summaries of any information, documents and reports required to be filed
by the Company pursuant to paragraphs (1) and (2) of this Section as may be required
by rules and regulations prescribed from time to time by the Commission. 

61

          (4)
Delivery of such reports, information and documents to the Trustee is for
informational purposes only and the Trustee’s receipt of such shall not
constitute constructive notice of any information contained therein or
determinable from information contained therein, including the Company’s
compliance with any of its covenants hereunder (as to which the Trustee is
entitled to rely exclusively on Officers’ Certificates). 

ARTICLE EIGHT

CONSOLIDATION, MERGER AND SALES

          Section
801. Company May Consolidate, Etc., Only on
Certain Terms. 

          The
Company shall not, in any transaction or series of related transactions,
consolidate with, or sell, lease or convey all or substantially all of its
property and assets to, or merge with or into, any Person unless: 

          (1)
either (A) the Company shall be the continuing Person (in the case of a merger)
or (B) the successor Person (if other than the Company) formed by or resulting
from the consolidation or merger or which shall have received the transfer of
assets shall be an entity organized and existing under the laws of the United
States of America, any state thereof or the District of Columbia and shall expressly
assume the due and punctual payment of the principal of, premium, if any, and
interest, if any, on, and Additional Amounts, if any, with respect to, all
Securities Outstanding under this Indenture and the due and punctual
performance and observance of all covenants and conditions in such Outstanding
Securities and this Indenture to be performed or satisfied by the Company
(including, without limitation, the obligation to convert or exchange any
Securities that are convertible into or exchangeable for other securities or
property in accordance with the provisions of such Securities and this
Indenture) by a supplemental indenture reasonably satisfactory in form to the
Trustee; 

          (2)
immediately after giving effect to such transaction, no Event of Default, and
no event which, after notice or lapse of time, or both, would become an Event
of Default, shall have occurred and be continuing; and 

          (3)
either the Company or the successor Person shall have delivered to the Trustee
an Officers’ Certificate and an Opinion of Counsel, each stating that such
consolidation, merger, sale, assignment, transfer, lease or other conveyance
and, if a supplemental indenture is required in connection with such
transaction, such supplemental indenture comply with this Article and that all
conditions precedent herein provided for relating to such transaction have been
complied with. 

          Section
802. Successor Person Substituted for
Company. 

          In
the case of any such consolidation, sale, lease, conveyance or merger in which
the Company is not the continuing entity and upon execution and delivery by the
successor Person of the supplemental indenture described in Section 801, such
successor Person shall succeed to, and be substituted for, the Company and may
exercise every right and power of, the Company under this Indenture with the
same effect as if such successor Person had been named as the 

62

Company
herein, and the predecessor Company shall be automatically released and
discharged from all obligations and covenants under this Indenture, the
Securities and the Coupons. 

ARTICLE NINE

SUPPLEMENTAL INDENTURES

          Section
901. Supplemental Indentures without Consent
of Holders. 

          Without
the consent of any Holders of Securities or Coupons, the Company (when
authorized by or pursuant to a Board Resolution) and the Trustee, at any time
and from time to time, may enter into one or more indentures supplemental
hereto, in form reasonably satisfactory to the Trustee, for any of the following
purposes: 

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

          (2)
to add to the covenants of the Company for the benefit of the Holders of all or
any series of Securities (as shall be specified in such supplemental indenture
or indentures) or to surrender any right or power herein conferred upon the
Company with respect to all or any series of Securities issued under this
Indenture (as shall be specified in such supplemental indenture or indentures);
or 

          (3)
to add to or change any of the provisions of this Indenture to facilitate the
issuance of Bearer Securities, to provide that Bearer Securities may be
registrable as to principal, to change or eliminate any restrictions on the
payment of principal of, any premium or interest on or any Additional Amounts
with respect to Securities, to permit Bearer Securities to be issued in
exchange for Registered Securities, to permit Bearer Securities to be exchanged
for Bearer Securities of other authorized denominations or to permit or
facilitate the issuance of Securities in uncertificated or global form,
provided any such action shall not adversely affect the interests of the
Holders of Securities of any series then Outstanding or any Coupons
appertaining thereto; or 

          (4)
to establish the form or terms of Securities of any series and any Coupons
appertaining thereto as permitted by Section 201 and Section 301, including,
without limitation, any conversion or exchange provisions applicable to
Securities which are convertible into or exchangeable for other securities or
property, and to make any deletions from or additions or changes to this Indenture
in connection with any matters referred to in this clause (4) (provided that
any such deletions, additions and changes shall not be applicable to any other
series of Securities then Outstanding); or 

          (5)
to evidence and provide for the acceptance of appointment hereunder by a
successor Trustee with respect to the Securities of one or more series and to
add to or change any of the provisions of this Indenture as shall be necessary
to provide for or facilitate the administration of the trusts hereunder by more
than one Trustee, pursuant to the requirements of Section 609; or 

63

          (6)
to cure any ambiguity or to correct or supplement any provision herein which
may be defective or which may be inconsistent with any other provision herein, or
to make any other provisions with respect to matters or questions arising under
this Indenture which shall not adversely affect the interests of the Holders of
Securities of any series then Outstanding or any Coupons appertaining thereto
in any material respect; or 

          (7)
to add any additional Events of Default with respect to all or any series of
Securities (as shall be specified in such supplemental indenture); or 

          (8)
to supplement any of the provisions of this Indenture to such extent as shall
be necessary to permit or facilitate the defeasance, covenant defeasance and/or
satisfaction and discharge of any series of Securities pursuant to Article
Four, provided that any such action shall not adversely affect the interests of
any Holder of a Security of such series and any Coupons appertaining thereto or
any other Security or Coupon in any material respect; or 

          (9)
to add to or change or eliminate any provisions of this Indenture as shall be
necessary or desirable in accordance with any amendments to the Trust Indenture
Act; or 

          (10)
to make any change in this Indenture, or Supplemental Indenture, or any
Securities to conform the terms thereof to any provision of the description of
a series of any Securities in any prospectus, prospectus supplement, offering
memorandum or similar offering document used in connection with the initial
offering or sale of any Securities to the extent that such provision in such
description was intended to be a substantially verbatim recitation of a
provision of the indenture or the notes; or 

          (11)
in the case of any series of Securities which are convertible into or
exchangeable for Common Shares or other securities or property, to safeguard or
provide for the conversion or exchange rights, as the case may be, of such
Securities in the event of any reclassification or change of outstanding Common
Shares (or any other securities of the Company into which such Securities are
convertible or for which such Securities are exchangeable), or in the event of
any merger, consolidation, statutory share exchange or combination of the
Company with or into another Person or any sale, lease, assignment, transfer,
disposition or other conveyance of all or substantially all of the properties
and assets of the Company to any other Person or other similar transactions, if
expressly required by the terms of such series of Securities established
pursuant to Section 301; or 

          (12)
to secure the Securities; or 

          (13)
to amend or supplement any provision contained herein, in any supplemental
indenture or in any Securities (which amendment or supplement may apply to one
or more series of Securities or to one or more Securities within any series as
specified in such supplemental indenture), provided that such amendment or
supplement does not apply to any Outstanding Security issued prior to the date
of such supplemental indenture and entitled to the benefits of such provision. 

64

          Section
902. Supplemental Indentures with Consent of
Holders. 

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

          (1)
change the Stated Maturity of the principal of, or premium, if any, or any
installment of interest, if any, on, or any Additional Amounts, if any, with
respect to, any Security, or reduce the principal amount thereof or the
premium, if any, thereon or the rate (or modify the calculation of such rate)
of interest thereon, or reduce the amount payable upon redemption thereof,
whether such redemption is mandatory or at the option of the Company, or upon
repayment thereof at the option of the Holder, or reduce any Additional Amounts
payable with respect thereto, or change the obligation of the Company to pay
Additional Amounts pursuant to Section 1004 (except as contemplated by Section
801(1) and permitted by Section 901(1)), or reduce the amount of the principal
of any Original Issue Discount Security that would be due and payable upon a
declaration of acceleration of the Maturity thereof pursuant to Section 502 or
the amount thereof provable in bankruptcy pursuant to Section 504, or adversely
affect the right of repayment at the option of any Holder as contemplated by
Article Thirteen, or change the Place of Payment where or the Currency in which
the principal of, any premium or interest on, or any Additional Amounts with
respect to any Security is payable, or impair the right to institute suit for
the enforcement of any such payment on or after the Stated Maturity thereof
(or, in the case of redemption, on or after the Redemption Date or, in the case
of repayment pursuant to Article Thirteen at the option of the Holder, on or
after the date for repayment) in each case as such Stated Maturity, Redemption
Date or date for repayment may, if applicable, be extended in accordance with
the terms of such Security or any Coupon appertaining thereto, or in the case
of any Security which is convertible into or exchangeable for other securities
or property, impair the right to institute suit to enforce the right to convert
or exchange such Security in accordance with its terms, or 

          (2)
reduce the percentage in principal amount of the Outstanding Securities of any
series, the consent of whose Holders is required for any such supplemental
indenture, or the consent of whose Holders is required for any waiver (of
compliance with certain provisions of this Indenture or certain defaults
hereunder and their consequences) provided for in Section 513 or Section 1106
of this Indenture, or reduce the requirements of Section 1504 for quorum or
voting, or 

          (3)
make any change that adversely affects the right, if any, to convert or
exchange any Security for Common Shares or other securities or property in
accordance with its terms, or 

          (4)
modify any of the provisions of this Section, Section 513 or Section 1006, except
to increase any such percentage or to provide that certain other provisions of
this Indenture cannot be modified or waived without the consent of the Holder
of each Outstanding Security affected thereby. 

65

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

          Anything
in this Indenture to the contrary notwithstanding, if more than one series of
Securities is Outstanding, the Company shall be entitled to enter into a
supplemental indenture under this Section 902 with respect to any one or more
series of Outstanding Securities without entering into a supplemental indenture
with respect to any other series of Outstanding Securities. 

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

          Section
903. Execution of Supplemental Indentures. 

          As
a condition to executing, or accepting the additional trusts created by, any
supplemental indenture permitted by this Article or the modifications thereby
of the trust created by this Indenture, the Trustee shall receive, and (subject
to Sections 315(a) through 315(d) of the Trust Indenture Act) shall be fully
protected in conclusively relying upon, an Officers’ Certificate and Opinion of
Counsel to the effect that the execution of such supplemental indenture is
authorized or permitted by this Indenture and that such supplemental indenture
has been duly authorized, executed and delivered by, and is a valid, binding
and enforceable obligation of, the Company, subject to customary exceptions.
The Trustee may, but shall not be obligated to, enter into any such
supplemental indenture which affects the Trustee’s own rights, duties or
immunities under this Indenture or otherwise. 

          Section
904. Effect of Supplemental Indentures. 

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

          Section
905. Reference in Securities to Supplemental
Indentures. 

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

66

          Section
906. Conformity with Trust Indenture Act. 

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

ARTICLE TEN

COVENANTS

          Section
1001. Payment of Principal, Premium,
Interest and Additional Amounts. 

          The
Company covenants and agrees for the benefit of the Holders of the Securities
of each series that it will duly and punctually pay the principal of, any
premium and interest on and any Additional Amounts with respect to the
Securities of such series, whether payable in cash, Common Shares or other
securities or property, in accordance with the terms thereof, any Coupons
appertaining thereto and this Indenture. Any interest due on any Bearer
Security on or before the Maturity thereof, and any Additional Amounts payable
with respect to such interest, shall be payable only upon presentation and
surrender of the Coupons appertaining thereto for such interest as they
severally mature. 

          Section
1002. Maintenance of Office or Agency. 

          The
Company shall maintain in each Place of Payment for any series of Securities an
Office or Agency where Securities of such series (but not Bearer Securities,
except as otherwise provided below, unless such Place of Payment is located
outside the United States) may be presented or surrendered for payment, where
Securities of such series may be surrendered for registration of transfer or
exchange, where Securities of such series that are convertible or exchangeable
may be surrendered for conversion or exchange, and where notices and demands to
or upon the Company in respect of the Securities of such series relating thereto
and this Indenture may be served. If Securities of a series are issuable as
Bearer Securities, the Company shall maintain, subject to any laws or
regulations applicable thereto, an Office or Agency in a Place of Payment for
such series which is located outside the United States where Securities of such
series and any Coupons appertaining thereto may be presented and surrendered
for payment; provided, however, that if the Securities of such series are
listed on any stock exchange located outside the United States and such stock
exchange shall so require, the Company shall maintain a Paying Agent in a city
located outside the United States required by such stock exchange, so long as
the Securities of such series are listed on such exchange. The Company will give
prompt written notice to the Trustee of the location, and any change in the
location, of such Office or Agency. If at any time the Company shall fail to
maintain any such required Office or Agency or shall fail to furnish the
Trustee with the address thereof, such presentations, surrenders, notices and
demands may be made or served at the Corporate Trust Office of the Trustee,
except that Bearer Securities of such series and any Coupons appertaining
thereto may be presented and surrendered for payment at the place specified for
the purpose with respect to such Securities as provided in or pursuant to this
Indenture, and the Company hereby appoints the Trustee as its agent to receive
all such presentations, surrenders, notices and demands. 

          Except
as otherwise provided in or pursuant to this Indenture, no payment of
principal, premium, interest or Additional Amounts with respect to Bearer
Securities shall be made at any Office or Agency in the United States or by
check mailed to any address in the United States or 

67

by transfer to
an account maintained with a bank located in the United States; provided,
however, if amounts owing with respect to any Bearer Securities shall be
payable in Dollars, payment of principal of, any premium or interest on and any
Additional Amounts with respect to any such Security may be made at the
Corporate Trust Office of the Trustee or any Office or Agency designated by the
Company in the United States designated for such purpose, if (but only if)
payment of the full amount of such principal, premium, interest or Additional
Amounts at all offices outside the United States maintained for such purpose by
the Company in accordance with this Indenture is illegal or effectively
precluded by exchange controls or other similar restrictions (in which case the
Company shall so notify the Trustee in writing). 

          The
Company may also from time to time designate one or more other Offices or
Agencies where the Securities of one or more series may be presented or
surrendered for any or all such purposes and may from time to time rescind such
designations; provided, however, that no such designation or rescission shall
in any manner relieve the Company of its obligations to maintain an Office or
Agency in each Place of Payment for Securities of any series for such purposes.
The Company shall give prompt written notice to the Trustee of any such
designation or rescission and of any change in the location of any such other
Office or Agency. 

          Unless
otherwise provided in or pursuant to this Indenture (including, without
limitation, pursuant to Section 301 with respect to the Securities of any
series), the Company hereby designates the place where the Trustee shall from
time to time maintain its Corporate Trust Office as the Company’s Office or
Agency for such purpose and initially appoints the Trustee as the Security
Registrar for each series of Securities and, if the Securities of any series
are convertible into or exchangeable for Common Shares or other securities or property,
initially appoints the Trustee as conversion or exchange agent, as the case may
be, for the Securities of such series. The Company may subsequently appoint a
different or additional Office or Agency and, as provided in Section 305, may
remove and replace from time to time the Security Registrar. 

          Section
1003. Money for Securities Payments to Be
Held in Trust. 

          If
the Company shall at any time act as its own Paying Agent with respect to any
series of Securities, it shall, on or before each due date of the principal of,
any premium or interest on, or any Additional Amounts with respect to any of
the Securities of such series, segregate and hold in trust for the benefit of
the Persons entitled thereto a sum in the Currency or Currencies in which the
Securities of such series are payable sufficient to pay the principal, any
premium, interest and Additional Amounts, as the case may be, so becoming due
until such sums shall be paid to such Persons or otherwise disposed of as
herein provided, and shall promptly notify the Trustee of its action or failure
so to act. 

          Whenever
the Company shall have one or more Paying Agents for any series of Securities,
it shall, on or prior to each due date of the principal of, or any premium or
interest on or any Additional Amounts with respect to, any Securities of such
series, deposit with any Paying Agent a sum (in the Currency or Currencies
described in the preceding paragraph) sufficient to pay the principal, premium,
interest and Additional Amounts, as the case may be, so becoming due, such sum
to be held in trust for the benefit of the Persons entitled thereto, and 

68

(unless such
Paying Agent is the Trustee) the Company will promptly notify the Trustee of
its action or failure so to act. 

          The
Company shall cause each Paying Agent for any series of Securities other than
the Trustee to execute and deliver to the Trustee an instrument in which such
Paying Agent shall agree with the Trustee, subject to the provisions of this
Section, that such Paying Agent shall: 

          (1)
hold all sums held by it for the payment of the principal of, any premium or
interest on or any Additional Amounts with respect to Securities of such series
in trust for the benefit of the Persons entitled thereto until such sums shall
be paid to such Persons or otherwise disposed of as provided in or pursuant to
this Indenture; 

          (2)
give the Trustee notice of any default by the Company (or any other obligor
upon the Securities of such series) in the making of any payment of principal,
any premium or interest on or any Additional Amounts with respect to the
Securities of such series; and 

          (3)
at any time during the continuance of any such default, upon the written
request of the Trustee, forthwith pay to the Trustee all sums so held in trust
by such Paying Agent. 

To the extent
that the terms of any Securities established pursuant to Section 301 provide
that any principal of, or premium or interest, if any, on or any Additional
Amounts with respect to any such Securities is or may be payable in Common
Shares or other securities or property, then the provisions of this Section
1003 shall apply, mutatis mutandis, to such Common Shares or other securities
or property.  

          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 by Company Order
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 as those upon which such sums were held by the Company or such Paying
Agent; and, upon such payment by any Paying Agent to the Trustee, such Paying
Agent shall be released from all further liability with respect to such sums. 

          Except
as otherwise provided herein or pursuant hereto, any money deposited with the
Trustee or any Paying Agent, or then held by the Company, in trust for the
payment of the principal of, any premium or interest on or any Additional
Amounts with respect to any Security of any series or any Coupon appertaining
thereto and remaining unclaimed for two years after such principal or such
premium or interest or Additional Amount shall have become due and payable
shall be paid to the Company on Company Request, or (if then held by the
Company) shall be discharged from such trust; and the Holder of such Security
or any Coupon appertaining thereto shall thereafter, as an unsecured general
creditor, look only to the Company for payment thereof, and all liability of
the Trustee or such Paying Agent with respect to such trust money, and all
liability of the Company as trustee thereof, shall thereupon cease; provided,
however, that the Trustee or such Paying Agent, before being required to make
any such repayment, may, not later than 30 days after the Company’s request for
such repayment, at the expense of the Company cause to be published once, in an
Authorized Newspaper in each Place of Payment for such series or to be mailed
to Holders of Registered Securities of such series, or both, notice that such
money remains unclaimed and that, after a date specified therein, which shall
not be less 

69

than 30 days
from the date of such publication or mailing nor shall it be earlier than two
years after such principal and any premium or interest or Additional Amounts
shall have become due and payable, any unclaimed balance of such money then
remaining will be repaid to the Company. 

          Section
1004. Additional Amounts. 

          If
any Securities of a series provide for the payment of Additional Amounts by the
Company, the Company agrees to pay to the Holder of any such Security or any
Coupon appertaining thereto Additional Amounts as provided in or pursuant to
this Indenture or such Securities. Whenever in this Indenture there is
mentioned, in any context, the payment of the principal of or any premium or
interest on, or in respect of, any Security of any series or any Coupon, such
mention shall be deemed to include mention of the payment of Additional Amounts
provided by the terms of such series established hereby or pursuant hereto to
the extent that, in such context, Additional Amounts are, were or would be
payable in respect thereof pursuant to such terms, and express mention of the
payment of Additional Amounts (if applicable) in any provision hereof shall not
be construed as excluding Additional Amounts in those provisions hereof where
such express mention is not made. 

          Section
1005. Legal Existence. 

          Subject
to Article Eight, the Company shall do or cause to be done all things necessary
to preserve and keep in full force and effect its legal existence as any type
of Corporation (it being understood that nothing in this Section 1005 shall
prohibit the Company from changing its legal form from one type of Corporation
to another type of Corporation). 

          Section
1006. Waiver of Certain Covenants. 

          The
Company may omit in any particular instance to comply with any term, provision
or condition set forth in Section 801, Section 802, Section 1002, Section 1003
or Section 1005 with respect to the Securities of any series and, if expressly
provided pursuant to Section 301 with respect to the Securities of such series,
any additional covenants applicable to the Securities of such series if before
the time for such compliance the Holders of at least a majority in principal
amount of the Outstanding Securities of such series, by Act of such Holders,
either shall waive such compliance in such instance or generally shall have
waived compliance with such term, provision or condition, but no such waiver
shall extend to or affect such term, provision or condition except to the
extent so expressly waived, and, until such waiver shall become effective, the
obligations of the Company and the duties of the Trustee in respect of any such
term, provision or condition shall remain in full force and effect. 

          Section
1007. Company Statement as to Compliance. 

          The
Company shall deliver to the Trustee, within 120 days after the end of each
fiscal year, a written statement (which need not be contained in or accompanied
by an Officers’ Certificate) signed by the principal executive officer, the
principal financial officer or the principal accounting officer of the Company,
stating whether or not, to the best of his or her knowledge, the Company is in
default in the performance and observance of any of the terms, provisions and
conditions of this Indenture (without regard to notice requirements or periods
of 

70

grace) and if
the Company shall be in default, specifying all such defaults and the nature
and status thereof of which he or she may have knowledge. 

          Section
1008. Calculation of Original Issue
Discount. 

                    The
Company shall file with the Trustee promptly at the end of each calendar year
(i) a written notice specifying the amount of original issue discount
(including daily rates and accrual periods) accrued on Outstanding Securities
as of the end of such year and (ii) such other specific information relating to
such original issue discount as may then be relevant under the Internal Revenue
Code of 1986, as amended from time to time. 

ARTICLE ELEVEN

REDEMPTION OF SECURITIES

          Section
1101. Applicability of Article. 

          Redemption
of Securities of any series at the option of the Company as permitted or
required by the terms of such Securities shall be made in accordance with the
terms of such Securities and (except as otherwise provided herein or pursuant
hereto) this Article. 

          Section
1102. Election to Redeem; Notice to Trustee.

          The
election of the Company to redeem any Securities shall be evidenced by or
pursuant to a Board Resolution. In case of any redemption at the election of
the Company of less than all of the Securities of any series, the Company
shall, at least 60 days prior to the Redemption Date fixed by the Company
(unless a shorter notice shall be satisfactory to the Trustee), notify the
Trustee of such Redemption Date and of the principal amount of Securities of
such series to be redeemed and, in the event that the Company shall determine
that the Securities of any series to be redeemed shall be selected from
Securities of such series having the same issue date, interest rate or interest
rate formula, Stated Maturity and other terms (the “Equivalent Terms”), the
Company shall notify the Trustee of such Equivalent Terms. 

          In
the case of any redemption of Securities (A) prior to the expiration of any
restriction on such redemption provided in the terms of such Securities or
elsewhere in this Indenture or (B) pursuant to an election of the Company which
is subject to a condition specified in the terms of such Securities or
elsewhere in this Indenture, the Company shall furnish to the Trustee an
Officers’ Certificate evidencing compliance with such restriction or condition.

          Section
1103. Selection by Trustee of Securities to
be Redeemed. 

          If
less than all of the Securities of any series are to be redeemed or if less than
all of the Securities of any series with Equivalent Terms are to be redeemed,
the particular Securities to be redeemed shall be selected not more than 60
days prior to the Redemption Date by the Trustee from the Outstanding
Securities of such series or from the Outstanding Securities of such series
with Equivalent Terms, as the case may be, not previously called for
redemption, by such method as the Trustee shall deem fair and appropriate and
which may provide for the selection for redemption of portions of the principal
amount of Registered Securities of such series; 

71

provided,
however, that no such partial redemption shall reduce the portion of the
principal amount of a Security of such series not redeemed to less than the
minimum denomination for a Security of such series established herein or
pursuant hereto. 

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

          For
all purposes of this Indenture, unless the context otherwise requires, all
provisions relating to the redemption of Securities shall relate, in the case
of any Securities redeemed or to be redeemed only in part, to the portion of
the principal of such Securities which has been or is to be redeemed. 

          Unless
otherwise specified in or pursuant to this Indenture or the Securities of any
series or in a notice of redemption, if any Security selected for partial
redemption is converted or exchanged for Common Shares or other securities or
property in part before termination of the conversion or exchange right with
respect to the portion of the Security so selected, the converted or exchanged
portion of such Security shall be deemed (so far as may be) to be the portion
selected for redemption. Securities which have been converted or exchanged
during a selection of Securities to be redeemed shall be treated by the Trustee
as Outstanding for the purpose of such selection. 

          Section
1104. Notice of Redemption. 

          Notice
of redemption shall be given in the manner provided in Section 106, not less
than 30 nor more than 60 days prior to the Redemption Date, unless a shorter
period is specified in the Securities to be redeemed, to the Holders of
Securities to be redeemed. Failure to give notice by mailing in the manner
herein provided to the Holder of any Registered Securities designated for
redemption as a whole or in part, or any defect in the notice to any such
Holder, shall not affect the validity of the proceedings for the redemption of
any other Securities or portions thereof. 

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

          All
notices of redemption shall state: 

          (1)
the Redemption Date, 

          (2)
the Redemption Price or, if applicable, the manner in which the Redemption
Price will be determined, 

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

          (4)
that, in case any Security is to be redeemed in part only, on and after the
Redemption Date, upon surrender of such Security, the Holder of such Security
will receive, 

72

without
charge, a new Security or Securities of authorized denominations for the
principal amount thereof remaining unredeemed, 

          (5)
that, on the Redemption Date, the Redemption Price shall become due and payable
upon each such Security or portion thereof to be redeemed, together (if
applicable) with accrued and unpaid interest, if any, thereon (subject, if
applicable, to the provisos to the first paragraph of Section 1106), and, if
applicable, that interest thereon shall cease to accrue on and after said date,

          (6)
the place or places where such Securities, together (in the case of Bearer
Securities) with all Coupons appertaining thereto, if any, maturing after the
Redemption Date, are to be surrendered for payment of the Redemption Price and any
accrued interest and Additional Amounts pertaining thereto, 

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

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

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

          (10)
in the case of Securities of any series that are convertible or exchangeable
into Common Shares or other securities or property, the then current conversion
or exchange price or rate, the date or dates on which the right to convert or
exchange the principal of the Securities of such series to be redeemed will
commence or terminate, as applicable, and the place or places where and the
Persons to whom such Securities may be surrendered for conversion or exchange, 

          (11)
the CUSIP number of such Securities, if any, and 

          (12)
if the Redemption Price or any portion thereof shall be payable, at the option
of the Company, in cash or in Common Shares or other securities or property (or
a combination thereof), a statement as to whether the Company has elected to
pay the Redemption Price in cash or Common Shares or other securities or
property or a combination thereof and, if applicable, the portion of the
Redemption Price that is to be paid in cash, Common Shares or other securities
or property. 

          A
notice of redemption published as contemplated by Section 106 need not identify
particular Registered Securities to be redeemed. 

73

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

          Section
1105. Deposit of Redemption Price. 

          On
or prior to 10:00a.m., New York City time, on any Redemption Date, the Company
shall deposit, with respect to the Securities of any series called for
redemption pursuant to Section 1104, with the Trustee or with a Paying Agent
(or, if the Company is acting as its own Paying Agent, segregate and hold in
trust as provided in Section 1003) an amount of money in the applicable
Currency or, if the Redemption Price shall be payable in cash, securities
and/or other property, an amount of money in the applicable Currency,
securities and/or other property, as the case may be, sufficient to pay the
Redemption Price of, and (unless otherwise specified pursuant to Section 301
with respect to the Securities of such series) any accrued interest on, all
such Securities or portions thereof which are to be redeemed on that date,
except that, if the Securities of such series are convertible or exchangeable
into Common Shares or other securities or property, no such deposit shall be
required (unless otherwise specified pursuant to Section 301 with respect to
the Securities of such series) with respect to any such Securities (or portions
thereof) which have been converted or exchanged prior to such Redemption Date. 

          Section
1106. Securities Payable on Redemption Date.

          Notice
of redemption having been given as aforesaid, the Securities so to be redeemed
(except, in the case of Securities which are convertible or exchangeable into
Common Shares or other securities or property, any such Securities which shall
have been so converted or exchanged prior to the applicable Redemption Date)
shall, on the Redemption Date, become due and payable at the Redemption Price
therein specified, together with (unless otherwise provided with respect to the
Securities of such series pursuant to Section 301) accrued and unpaid interest,
if any, thereon and from and after such date (unless the Company shall default
in the payment of the Redemption Price and accrued interest, if any) such
Securities shall cease to bear interest and the Coupons for such interest
appertaining to any Bearer Securities so to be redeemed, except to the extent
provided below, shall be void. Upon surrender of any such Security for
redemption in accordance with said notice, together with all Coupons, if any,
appertaining thereto maturing after the Redemption Date, such Security shall be
paid by the Company at the Redemption Price, together with, unless otherwise
provided in or pursuant to this Indenture, any accrued and unpaid interest
thereon and Additional Amounts with respect thereto to but excluding the
Redemption Date; provided, however, that, except as otherwise provided in or
pursuant to this Indenture or the Bearer Securities of such series,
installments of interest on Bearer Securities whose Stated Maturity is on or
prior to the Redemption Date shall be payable only upon presentation and
surrender of Coupons for such interest (at an Office or Agency located outside
the United States except as otherwise provided in Section 1002), and provided,
further, that, except as otherwise specified in or pursuant to this Indenture
or the Registered Securities of such series, installments of interest on
Registered Securities whose Stated Maturity is on or prior to the Redemption Date
shall be payable to the Holders of such Securities, or one or more Predecessor
Securities, registered as such at the close of business on the Regular Record
Dates therefor according to their terms and the provisions of Section 307. 

74

          If
any Bearer Security surrendered for redemption shall not be accompanied by all
appurtenant Coupons maturing after the Redemption Date, such Security may be
paid after deducting from the Redemption Price or, at the option of the
Company, after payment to the Trustee for the benefit of the Company of, an
amount equal to the face amount of all such missing Coupons, or the surrender
of such missing Coupon or Coupons may be waived by the Company and the Trustee
if there be furnished to them such security or indemnity as they may require to
save each of them and any Paying Agent harmless from and against any and all
loss, liability or expense. If thereafter the Holder of such Security shall
surrender to the Trustee or any Paying Agent any such missing Coupon in respect
of which a deduction shall have been made from the Redemption Price, such
Holder shall be entitled to receive the amount so deducted; provided, however,
that any interest or Additional Amounts represented by Coupons shall be payable
only upon presentation and surrender of those Coupons at an Office or Agency
for such Security located outside of the United States except as otherwise
provided in Section 1002. 

          If
any Security called for redemption shall not be so paid upon surrender thereof
for redemption, the principal and any premium, until paid, shall bear interest
from the Redemption Date at the rate prescribed therefor in the Security or, if
no rate is prescribed therefor in the Security, at the rate of interest, if
any, borne by such Security. 

          Section
1107. Securities Redeemed in Part. 

          Any
Registered Security which is to be redeemed only in part shall be surrendered
at any Office or Agency for such Security (with, if the Company or the Trustee
so requires, due endorsement by, or a written instrument of transfer in form
satisfactory to the Company and the Trustee duly executed by, the Holder
thereof or his attorney duly authorized in writing) and the Company shall
execute and the Trustee shall authenticate and deliver to the Holder of such
Security without service charge, a new Registered Security or Securities of the
same series, containing identical terms and provisions, of any authorized
denomination as requested by such Holder in aggregate principal amount equal to
and in exchange for the unredeemed portion of the principal of the Security so
surrendered. If a Security in global form is so surrendered, the Company shall
execute, and the Trustee shall authenticate and deliver to the Depository for
such Security in global form as shall be specified in the Company Order with
respect thereto to the Trustee, without service charge, a new Security in
global form in a denomination equal to and in exchange for the unredeemed
portion of the principal of the Security in global form so surrendered. 

ARTICLE TWELVE

SINKING FUNDS

          Section
1201. Applicability of Article. 

          The
provisions of this Article shall be applicable to any sinking fund for the
retirement of Securities of a series, except as otherwise permitted or required
in or pursuant to this Indenture or any Security of such series issued pursuant
to this Indenture. 

75

          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 such 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 1202. Each sinking fund payment shall be applied to the
redemption of Securities of any series as provided for by the terms of
Securities of such series and this Indenture. 

          Section
1202. Satisfaction of Sinking Fund Payments
with Securities. 

          The
Company may, in satisfaction of all or any part of any sinking fund payment
with respect to the Securities of any series to be made pursuant to the terms
of such Securities (1) deliver Outstanding Securities of such series (other
than any of such Securities previously called for redemption or any of such
Securities in respect of which cash shall have been released to the Company),
together in the case of any Bearer Securities of such series with all unmatured
Coupons appertaining thereto, and (2) apply as a credit Securities of such
series which have been redeemed either at the election of the Company pursuant
to the terms of such series of Securities or through the application of
permitted optional sinking fund payments pursuant to the terms of such
Securities, 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. If as a result of the delivery or credit of Securities
of any series in lieu of cash payments pursuant to this Section 1202, the
principal amount of Securities of such series to be redeemed in order to
exhaust the aforesaid cash payment shall be less than $100,000, the Trustee
need not call Securities of such series for redemption, except upon Company
Request, and such cash payment shall be held by the Trustee or a Paying Agent
and applied to the next succeeding sinking fund payment, provided, however,
that the Trustee or such Paying Agent shall at the request of the Company from
time to time pay over and deliver to the Company any cash payment so being held
by the Trustee or such Paying Agent upon delivery by the Company to the Trustee
of Securities of that series purchased by the Company having an unpaid
principal amount equal to the cash payment requested to be released to the
Company. 

          Section
1203. Redemption of Securities for Sinking
Fund. 

          Not
less than 75 days prior to each sinking fund payment date for any series of
Securities, the Company shall deliver to the Trustee an Officers’ Certificate
specifying the amount of the next ensuing mandatory sinking fund payment for
that series pursuant to the terms of that series, the portion thereof, if any,
which is to be satisfied by payment of cash and the portion thereof, if any,
which is to be satisfied by delivering and crediting of Securities of that
series pursuant to Section 1202, and the optional amount, if any, to be added
in cash to the next ensuing mandatory sinking fund payment, and will also
deliver to the Trustee any Securities to be so credited and not theretofore
delivered. If such Officers’ Certificate shall specify an optional amount to be
added in cash to the next ensuing mandatory sinking fund payment, the Company
shall thereupon be obligated to pay the amount therein specified. Not less than
60 days before each such sinking fund payment date the Trustee shall select the
Securities to be redeemed upon such 

76

sinking fund
payment date in the manner specified in Section 1103 and cause notice of the
redemption thereof to be given in the name of and at the expense of the Company
in the manner provided in Section 1104. Such notice having been duly given, the
redemption of such Securities shall be made upon the terms and in the manner
stated in Section 1106 and Section 1107. 

ARTICLE THIRTEEN

REPAYMENT AT THE OPTION OF HOLDERS

          Section
1301. Applicability of Article. 

          Securities
of any series which are repayable at the option of the Holders thereof before
their Stated Maturity shall be repaid in accordance with the terms of the
Securities of such series. The repayment of any principal amount of Securities
pursuant to such option of the Holder to require repayment of Securities before
their Stated Maturity, for purposes of Section 309, shall not operate as a
payment, redemption or satisfaction of the indebtedness represented by such
Securities unless and until the Company, at its option, shall deliver or
surrender the same to the Trustee with a directive that such Securities be
cancelled. Notwithstanding anything to the contrary contained in this Section
1301, in connection with any repayment of Securities, the Company may arrange
for the purchase of any Securities by an agreement with one or more investment
bankers or other purchasers to purchase such Securities by paying to the
Holders of such Securities on or before the applicable repayment date an amount
not less than the repayment price payable by the Company on repayment of such
Securities, and the obligation of the Company to pay the repayment price of
such Securities shall be satisfied and discharged to the extent such payment is
so paid by such purchasers. 

          Unless
otherwise expressly stated in this Indenture or pursuant to Section 301 with
respect to the Securities of any series or unless the context otherwise
requires, all references in this Indenture to the repayment of Securities at
the option of the Holders thereof (and all references of like import) shall be
deemed to include a reference to the repurchase or redemption of Securities at
the option of the Holders thereof. 

ARTICLE FOURTEEN

SECURITIES IN FOREIGN CURRENCIES

          Section
1401. Applicability of Article. 

          Whenever
this Indenture provides for (i) any action by, or the determination of any of
the rights of, Holders of Securities of any series in which not all of such
Securities are denominated in the same Currency or (ii) any distribution to
Holders of Securities of any series in which not all of such Securities are
denominated in the same Currency, in the absence of any provision to the
contrary in or pursuant to this Indenture or the Securities of such series, any
amount in respect of any Security denominated in a Currency other than Dollars
shall be treated for any such action, determination or distribution as that
amount of Dollars that could be obtained for such amount on such reasonable
basis of exchange and as of the record date with respect to 

77

Registered
Securities of such series (if any) for such action, determination or
distribution (or, if there shall be no applicable record date, such other date
reasonably proximate to the date of such distribution) as the Company may
specify in a written notice to the Trustee. 

ARTICLE FIFTEEN

MEETINGS OF HOLDERS OF SECURITIES

          Section
1501. Purposes for Which Meetings May Be
Called. 

          Unless
otherwise provided pursuant to Section 301 with respect to the Securities of
any series, the provisions of this Article Fifteen shall be applicable to a
series of Securities if (and only if) the terms of such Securities established
pursuant to Section 301 provide that the Securities of such series shall be
issued or issuable, in whole or in part, as Bearer Securities. A meeting of
Holders of Securities of any series issued or issuable, in whole or in part, as
Bearer Securities may be called at any time and from time to time pursuant to
this Article to make, give or take any request, demand, authorization,
direction, notice, consent, waiver or other Act provided by this Indenture to
be made, given or taken by Holders of Securities of such series. 

          Section
1502. Call, Notice and Place of Meetings. 

          (1)
The Trustee may at any time call a meeting of Holders of Securities of any
series issued or issuable, in whole or in part, as Bearer Securities, for any
purpose specified in Section 1501, to be held at such time and at such place in
the Borough of Manhattan, The City of New York, or in London or in such place
outside the United States as the Company shall determine. Notice of every
meeting of Holders of Securities of any such series, setting forth the time and
the place of such meeting and in general terms the action proposed to be taken
at such meeting, shall be given, in the manner provided in Section 106, not
less than 21 nor more than 180 days prior to the date fixed for the meeting. 

          (2)
In case at any time the Company (by or pursuant to a Board Resolution) or the
Holders of at least 331/3 % in principal amount of the Outstanding Securities
of any series issued or issuable, in whole or in part, as Bearer Securities,
shall have requested the Trustee to call a meeting of the Holders of Securities
of such series for any purpose specified in Section 1501, by written request
setting forth in reasonable detail the action proposed to be taken at the
meeting, and the Trustee shall not have mailed notice of or made the first
publication of the notice of such meeting within 21 days after receipt of such
request (whichever shall be required pursuant to Section 106) or shall not thereafter
proceed to cause the meeting to be held as provided herein, then the Company or
the Holders of Securities of such series in the amount above specified, as the
case may be, may determine the time and the place in London for such meeting
and may call such meeting for such purposes by giving notice thereof as
provided in clause (1) of this Section. 

          Section
1503. Persons Entitled to Vote at Meetings. 

          To
be entitled to vote at any meeting of Holders of Securities of any series, a Person
shall be (1) a Holder of one or more Outstanding Securities of such series, or
(2) a Person appointed by an instrument in writing as proxy for a Holder or
Holders of one or more Outstanding 

78

Securities of
such series by such Holder or Holders. The only Persons who shall be entitled
to be present or to speak at any meeting of Holders of Securities of any series
shall be the Persons entitled to vote at such meeting and their counsel, any
representatives of the Trustee and its counsel and any representatives of the
Company and its counsel. 

          Section
1504. Quorum; Action. 

          The
Persons entitled to vote a majority in principal amount of the Outstanding
Securities of a series shall constitute a quorum for a meeting or duly
reconvened meeting of Holders of Securities of such series; provided, however,
that if any action is to be taken at such meeting with respect to any request,
demand, authorization, direction, notice, consent, waiver or other action which
this Indenture expressly provides may be given by the Holders of a greater
percentage in principal amount of the Outstanding Securities of a series, the
Persons entitled to at least such greater percentage in principal amount of the
Outstanding Securities of such series shall constitute a quorum. In the absence
of a quorum within 30 minutes after the time appointed for any such meeting,
the meeting shall, if convened at the request of Holders of Securities of such
series, be dissolved. In any other case the meeting may be adjourned for a
period of not less than 10 days as determined by the chairman of the meeting
prior to the adjournment of such meeting. In the absence of a quorum at any
such adjourned meeting, such adjourned meeting may be further adjourned for a
period of not less than 10 days as determined by the chairman of the meeting
prior to the adjournment of such adjourned meeting. Notice of the reconvening
of any adjourned meeting shall be given as provided in Section 1502(1), except
that such notice need be given only once not less than five days prior to the
date on which the meeting is scheduled to be reconvened. Notice of the
reconvening of an adjourned meeting shall state expressly the percentage, as
provided above, of the principal amount of the Outstanding Securities of such
series which shall constitute a quorum. 

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

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

79

          Section
1505. Determination of Voting Rights;
Conduct and Adjournment of Meetings. 

          (1)
Notwithstanding any other provisions of this Indenture, the Trustee may make
such reasonable regulations as it may deem advisable for any meeting of Holders
of Securities of such series in regard to proof of the holding of Securities of
such series and of the appointment of proxies and in regard to the appointment
and duties of inspectors of votes, the submission and examination of proxies,
certificates and other evidence of the right to vote, and such other matters
concerning the conduct of the meeting as it shall deem appropriate. Except as
otherwise permitted or required by any such regulations, the holding of
Securities shall be proved in the manner specified in Section 104 and the
appointment of any proxy shall be proved in the manner specified in Section 104
or by having the signature of the person executing the proxy witnessed or guaranteed
by any trust company, bank or banker authorized by Section 104 to certify to
the holding of Bearer Securities. Such regulations may provide that written
instruments appointing proxies, regular on their face, may be presumed valid
and genuine without the proof specified in Section 104 or other proof. 

          (2)
The Trustee shall, by an instrument in writing, appoint a temporary chairman of
the meeting, unless the meeting shall have been called by the Company or by
Holders of Securities as provided in Section 1502(2), in which case the Company
or the Holders of Securities of the series calling the meeting, as the case may
be, shall in like manner appoint a temporary chairman. A permanent chairman and
a permanent secretary of the meeting shall be elected by vote of the Persons
entitled to vote a majority in principal amount of the Outstanding Securities
of such series represented at the meeting. 

          (3)
At any meeting, each Holder of a Security of such series or proxy shall be
entitled to one vote for each $1,000 principal amount of Securities of such
series held or represented by him; provided, however, that no vote shall be
cast or counted at any meeting in respect of any Security challenged as not
Outstanding and ruled by the chairman of the meeting to be not Outstanding. If
the Securities of such series are issuable in minimum denominations of less
than $1,000, then a Holder of such a Security in a principal amount of less
than $1,000 shall be entitled to a fraction of one vote which is equal to the
fraction that the principal amount of such Security bears to $1,000. The
chairman of the meeting shall have no right to vote, except as a Holder of a
Security of such series or proxy. 

          (4)
Any meeting of Holders of Securities of any series duly called pursuant to
Section 1502 at which a quorum is present may be adjourned from time to time by
Persons entitled to vote a majority in principal amount of the Outstanding
Securities of such series represented at the meeting; and the meeting may be held
as so adjourned without further notice. 

          Section
1506. Counting Votes and Recording Action of
Meetings. 

          The
vote upon any resolution submitted to any meeting of Holders of Securities of
any series shall be by written ballots on which shall be subscribed the
signatures of the Holders of Securities of such series or of their
representatives by proxy and the principal amounts and serial numbers of the
Outstanding Securities of such series held or represented by them. The
permanent chairman of the meeting shall appoint two inspectors of votes who
shall count all votes cast at the meeting for or against any resolution and who
shall make and file with the secretary of the meeting their verified written
reports in triplicate of all votes cast at the meeting. A record, at least in
triplicate, of the proceedings of each meeting of Holders of Securities of any 

80

series shall
be prepared by the secretary of the meeting and there shall be attached to said
record the original reports of the inspectors of votes on any vote by ballot
taken thereat and affidavits by one or more persons having knowledge of the
facts setting forth a copy of the notice of the meeting and showing that said
notice was given as provided in Section 1502 and, if applicable, Section 1504.
Each copy shall be signed and verified by the affidavits of the permanent
chairman and secretary of the meeting and one such copy shall be delivered to
the Company, and another to the Trustee to be preserved by the Trustee, the
latter to have attached thereto the ballots voted at the meeting. Any record so
signed and verified shall be conclusive evidence of the matters therein stated.

ARTICLE SIXTEEN

SECURITY

          Section
1601. Security. 

          If
so provided pursuant to Section 301 with respect to the Securities of any
series, the Securities of such series may be secured by such property, assets
or other collateral as may be specified in or pursuant to Section 301. Any and
all terms and provisions applicable to the security for the Securities of such
series shall also be provided in or pursuant to Section 301, which may include,
without limitation, provisions for the execution and delivery of such security
agreements, pledge agreements, collateral agreements and other similar or related
agreements as the Company may elect and which may provide for the Trustee to
act as collateral agent or in a similar or other capacity. The Trustee shall
comply with Sections 313(a)(5) and (6) and 313(b)(1) of the Trust Indenture Act
and the Company shall comply with Sections 314(b), 314(c) and 314(d) of the
Trust Indenture Act, in each case in respect of any secured Securities that may
be outstanding hereunder from time to time. 

*   *   *   *    *

81

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

	
  

 	
  

 	
  

 
	
  

 	
 ANNALY
 CAPITAL MANAGEMENT, INC.

 
	
  

 	
  

 	
  

 
	
  

 	
 By:

 	
 /s/ Kathryn
 Fagan

 
	
  

 	
  

 	

 

 
	
  

 	
  

 	
 Name:
 Kathryn Fagan

 
	
  

 	
  

 	
 Title: Chief
 Financial Officer

 
	
  

 	
  

 	
  

 
	
  

 	
 WELLS FARGO
 BANK, NATIONAL ASSOCIATION,

 
	
  

 	
 as Trustee

 
	
  

 	
  

 	
  

 
	
  

 	
 By:

 	
 /s/ Martin
 Reed

 
	
  

 	
  

 	

 

 
	
  

 	
  

 	
 Name: Martin
 Reed

 
	
  

 	
  

 	
 Title: Vice
 President

 

[Signature Page to Indenture]EXHIBIT 4.2

ANNALY CAPITAL MANAGEMENT, INC.

and

WELLS FARGO BANK, NATIONAL ASSOCIATION

AS TRUSTEE

4.00% Convertible Senior Notes due 2015

FIRST SUPPLEMENTAL INDENTURE

Dated as of February 12, 2010

to

INDENTURE

Dated as of February 12, 2010

TABLE OF CONTENTS

	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Page

 
	
  

 	
  

 	

 

 
	
  

 	
  

 	
  

 
	
 ARTICLE I ADDITIONAL DEFINITIONS AND
 INCORPORATION BY REFERENCE

 	
  

 	
 1

 
	
  

 	
  

 	
  

 
	
 Section 1.01 Definitions 

 	
  

 	
 1

 
	
  

 	
  

 	
  

 
	
 ARTICLE II THE NOTES

 	
  

 	
 5

 
	
  

 	
  

 	
  

 
	
 Section 2.01 Title; Amount and Issue of
Notes; Principal and Interest 

 	
  

 	
 5

 
	
 Section 2.02 Form of Notes 

 	
  

 	
 7

 
	
 Section 2.03 Legends 

 	
  

 	
 7

 
	
 Section 2.04 Security Registrar, Paying
Agent, Withholding Agent, Securities Custodian and Conversion Agent 

 	
  

 	
 8

 
	
 Section 2.05 No Sinking Fund 

 	
  

 	
 9

 
	
 Section 2.06 Redemption of Notes 

 	
  

 	
 9

 
	
 Section 2.07 Discharge of Indenture, Defeasance 

 	
  

 	
 9

 
	
 Section 2.08 Ranking 

 	
  

 	
 9

 
	
 Section 2.09 Repurchase and Cancellation 

 	
  

 	
 9

 
	
  

 	
  

 	
  

 
	
 ARTICLE III ADDITIONAL DEFAULTS AND REMEDIES

 	
  

 	
 9

 
	
  

 	
  

 	
  

 
	
 Section 3.01 Additional Events of Default 

 	
  

 	
 9

 
	
 Section 3.02 Acceleration of Maturity;
Recission and Annulment 

 	
  

 	
 10

 
	
 Section 3.03 Exception to Remedies 

 	
  

 	
 10

 
	
  

 	
  

 	
  

 
	
 ARTICLE IV AMENDMENTS

 	
  

 	
 10

 
	
  

 	
  

 	
  

 
	
 Section 4.01 Amendments 

 	
  

 	
 10

 
	
  

 	
  

 	
  

 
	
 ARTICLE V PURCHASE OF NOTES AT THE OPTION OF
 HOLDERS UPON A FUNDAMENTAL CHANGE

 	
  

 	
 11

 
	
  

 	
  

 	
  

 
	
 Section 5.01 Purchase of Notes at the
Option of the Holder Upon a Fundamental Change 

 	
  

 	
 11

 
	
 Section 5.02 Further Conditions and
Procedures for Purchase at the Option of the Holder Upon a Fundamental
Change 

 	
  

 	
 13

 
	
 Section 5.03 Ownership Limit 

 	
  

 	
 15

 
	
  

 	
  

 	
  

 
	
 ARTICLE VI CONVERSION

 	
  

 	
 15

 
	
  

 	
  

 	
  

 
	
 Section 6.01 Article Seventeen Added 

 	
  

 	
 15

 
	
 Section 6.02 Conversion of Notes 

 	
  

 	
 15

 
	
 Section 6.03 Adjustments to Conversion
Rate 

 	
  

 	
 17

 
	
 Section 6.04 Adjustment Upon Certain
Fundamental Changes 

 	
  

 	
 22

 
	
 Section 6.05 Effect of Reclassification,
Consolidation, Merger or Sale 

 	
  

 	
 23

 

i

	
  

 	
  

 	
  

 
	
 Section 6.06 Responsibility of Trustee 

 	
  

 	
 24

 
	
 Section 6.07 Notice to Holders Prior to
Certain Actions 

 	
  

 	
 24

 
	
 Section 6.08 Stockholder Rights Plan 

 	
  

 	
 25

 
	
 Section 6.09 Mandatory Conversion 

 	
  

 	
 25

 
	
 Section 6.10 Settlement of Change of
Control and Coupon Make-Whole 

 	
  

 	
 26

 
	
  

 	
  

 	
  

 
	
 ARTICLE VII REPORTS BY THE COMPANY

 	
  

 	
 27

 
	
  

 	
  

 	
  

 
	
 Section 7.01 Section 704 Replaced 

 	
  

 	
 27

 
	
  

 	
  

 	
  

 
	
 ARTICLE VIII MISCELLANEOUS

 	
  

 	
 27

 
	
  

 	
  

 	
  

 
	
 Section 8.01 Certain Matters Relating to
the Trustee 

 	
  

 	
 27

 
	
 Section 8.02 Withholding Offset 

 	
  

 	
 28

 
	
 Section 8.03 Calculations in Respect of
Notes 

 	
  

 	
 28

 
	
 Section 8.04 Application of Supplemental
Indenture 

 	
  

 	
 29

 
	
 Section 8.05 Effective Date 

 	
  

 	
 29

 
	
 Section 8.06 Multiple Originals 

 	
  

 	
 29

 
	
 Section 8.07 Governing Law 

 	
  

 	
 29

 
	
 Section 8.08 General 

 	
  

 	
 29

 

ii

          FIRST
SUPPLEMENTAL INDENTURE, dated as of February 12, 2010, by and between Annaly
Capital Management Inc. (the “Company”), a corporation organized under the laws
of the State of Maryland and having its principal executive office located at
1211 Avenue of the Americas, Suite 2902, New York, New York 10036, and Wells
Fargo Bank, National Association, a national banking association duly organized
and existing under the laws of the United States of America, as trustee (the
“Trustee”) to that certain Indenture dated as of February 12, 2010 between the
Company and the Trustee. 

RECITALS OF THE COMPANY

          The
Company and the Trustee are parties to an Indenture dated as of February 12,
2010 (the “Original Indenture”), relating to the issuance from time to time by
the Company of one or more series of its Securities. 

          Sections
901 (4), (7) and (13) of the Original Indenture provide that a supplemental
indenture may be entered into by the Company and the Trustee, without the
consent of any Holders, when authorized by a Board Resolution (a) to
establish the form or terms of any series of Securities and to make any
deletions from or additions or changes to the Original Indenture (provided that
any such deletions, additions and change shall not be applicable to any other
series of Securities then Outstanding), (b) to add any additional Events
of Default and (c) to amend or supplement any provision contained in the
Original Indenture, any supplemental indenture or any Securities, provided that
such amendment or supplement does not apply to any Outstanding Security issued
prior to the date of such supplemental indenture and entitled to the benefits
of such provision. 

          The
Company represents and warrants that all things necessary to make this
Supplemental Indenture a valid agreement of the Company and the Trustee, in
accordance with the terms of the Original Indenture, and a valid amendment of
and supplement to the Original Indenture have been done. 

          The
Company has requested the Trustee to join with it in the execution and delivery
of this first supplemental indenture (the “Supplemental Indenture”) in order to
supplement and amend the Original Indenture, solely with respect to the
establishment and issuance of a new series of Securities to be known as the
4.00% Convertible Senior Notes due 2015 (the “Notes”) issued on the date
hereof. 

          NOW,
THEREFORE, THIS SUPPLEMENTAL INDENTURE WITNESSETH: 

          For
and in consideration of the premises and the purchase of Notes on the date
hereof by the Holders thereof, it is mutually agreed, for the equal and ratable
benefit of all Holders of the Notes, as follows: 

ARTICLE I

ADDITIONAL DEFINITIONS AND INCORPORATION BY
REFERENCE

          Section
1.01 Definitions. For all purposes of the Original Indenture and this
Supplemental Indenture relating to the series of Securities consisting of the
Notes created hereby, except as otherwise expressly provided or unless the
context otherwise requires, (i) the terms defined in this Article I shall
have the meanings assigned to them in this Article I, (ii) any term that
is defined in both the Original Indenture and this Supplemental Indenture shall
have the meaning assigned to such term in this Supplemental Indenture,
(iii) any capitalized term that is used in this Supplemental Indenture but
not defined herein shall have the meaning specified in the Original Indenture
and (iii) as used in this Supplemental Indenture, the terms “herein,”
“hereof,” “hereunder” and other words of similar import refer to this
Supplemental Indenture. 

          For
purposes of the Notes and this Supplemental Indenture, the following terms
shall have the following definitions: 

          “Additional
Interest” means all amounts, if any, payable pursuant to Section 3.03
hereof. 

          “Beneficial
Owner” shall mean any person who is considered a beneficial owner of a
security in accordance with Rule 13d-3 promulgated by the SEC under the
Exchange Act. 

          “Business
Day” means any day other than a Saturday or Sunday that is not a day on
which banking institutions are authorized or obligated by law or executive
order to close in The City of New York. 

          “Change
of Control Make-Whole” means the additional value that a Holder converting
Notes in connection with a Fundamental Change shall be entitled to receive in
accordance with Section 6.04(a) of this Supplemental Indenture, which shall be
based on a percentage of $1,000 principal amount of the Notes determined by
reference to the table set forth in Schedule A of this Supplemental
Indenture.

          “Charter”
means the Articles of Amendment and Restatement of Articles of Incorporation
filed with the Maryland State Department of Assessment and Taxation on February
4, 1997, all amendments thereto and all Articles Supplementary of the Company,
as may be further amended, restated or supplemented. 

          “Common
Stock” means the common stock, par value $0.01 per share, of the Company
existing on the Issue Date or any other shares of capital stock into which such
common stock shall be reclassified or changed. 

          “Company”
means Annaly Capital Management, Inc. or its successors and assigns. 

          “Conversion
Agent” means the office or agency appointed by the Company where Notes may
be presented for conversion. The Conversion Agent appointed by the Company
shall initially be the Trustee. 

          “Conversion
Price” means, in respect of each $1,000 principal amount of Notes, $1,000
divided by the Conversion Rate, as may be adjusted from time to time as set
forth herein, and initially shall be $21.456. 

          “Conversion
Rate” means, in respect of each $1,000 principal amount of Notes, initially
46.6070 shares of Common Stock, subject to adjustment as set forth herein. 

          “Conversion
Value” means the applicable Conversion Rate multiplied by the Stock Price.

          “Coupon
Make-Whole” means, for each Holder, a number of shares of Common Stock
(determined in accordance with Section 6.10 of this Supplemental Indenture)
equal to the dollar amount of (1) 2.00% multiplied by the principal amount of
the Notes of such Holder to be converted upon a Mandatory Conversion,
multiplied by (2) the number of Interest Payment Dates remaining between the
Mandatory Conversion Date and the Stated Maturity (including any Interest
Payment Date coinciding with the Stated Maturity, but excluding any Interest
Payment Date for which the Regular Record Date precedes the Mandatory
Conversion Date).

          “Daily
VWAP” means the per share volume-weighted average price as displayed under
the heading “Bloomberg VWAP” on Bloomberg page “NLY.N <equity> AQR” (or
any successor thereto) in respect of the period from the scheduled open of
trading until the scheduled close of trading of the primary trading session on
such Trading Day (or if such volume-weighted average price is unavailable, the
market value of one share of Common Stock on such Trading Day, determined using
a volume weighted average method, by a nationally recognized independent
investment banking firm retained for this purpose by the Company). Daily VWAP
will be determined without regard to after hours trading or any other trading
outside of the regular trading session trading hours. 

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

          “Definitive
Notes” means certificated Notes that are not Global Notes. 

          “DTC”
means The Depository Trust Company, its nominees and their respective
successors and assigns, or such other depository institution hereinafter
appointed by the Company pursuant to the terms of this Supplemental Indenture. 

          “Ex-Dividend
Date” means the first date upon which the Common Stock trades on the
applicable exchange or in the applicable market, regular way, without the right
to receive the issuance or distribution in question. 

2

          “Fair
Market Value” means the amount that a willing buyer would pay a willing
seller in an arm’s length transaction. 

          A
“Fundamental Change” shall be deemed to have occurred at the time after
the Notes are originally issued that any of the following occurs: 

          (1)
a “person” or “group” within the meaning of Section 13(d) of the Exchange
Act other than the Company, any Subsidiary of the Company or any employee
benefit plans of the Company or a Subsidiary of the Company files a
Schedule 13D or Schedule TO (or any successor schedule, form or
report) pursuant to the Exchange Act disclosing that such person has become the
direct or indirect “beneficial owner,” as defined in Rule 13d-3 under the
Exchange Act, of the Company’s common equity representing more than 50% of the
voting power of all shares of the Company’s common equity entitled to vote
generally in the election of directors of the Company, unless such beneficial
ownership arises as a result of a revocable proxy delivered in response to a
public proxy or consent solicitation made pursuant to the applicable rules and
regulations under the Exchange Act; provided, that no person or group shall be
deemed to be the beneficial owner of any securities tendered pursuant to a
tender or exchange offer made by or on behalf of such person or group until
such tendered securities are accepted for purchase or exchange under such
offer; or 

          (2)
consummation of (A) any recapitalization, reclassification or change of
the Common Stock (other than changes resulting from a subdivision or
combination) as a result of which the Common Stock would be converted into, or
exchanged for, stock, other securities, other property or assets or
(B) any statutory share exchange, consolidation or merger involving the
Company pursuant to which the Common Stock will be converted into cash,
securities or other property or any sale, lease or other transfer in one
transaction or a series of related transactions of all or substantially all of
the consolidated assets of the Company and the Company’s Subsidiaries, taken as
a whole, to any person other than one or more of the Company’s Subsidiaries,
other than any transaction: 

	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (I)
 involving a consolidation or merger that does not result in a
 reclassification, conversion, exchange or cancellation of the outstanding
 Common Stock; 

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (II) where
 the holders of all classes of the Company’s common equity immediately prior
 to such transaction that is a statutory share exchange, consolidation or
 merger own, directly or indirectly, more than 50% of all classes of common
 equity of the continuing or surviving entity or transferee or the parent
 entity thereof immediately after such transaction; or 

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (III) that
 is effected solely to change the Company’s jurisdiction of incorporation and
 results in a reclassification, conversion or exchange of outstanding shares
 of the Common Stock solely into shares of common stock of the surviving entity;
 

 

provided, however, that a Fundamental
Change will not be deemed to have occurred if 90% or more of the consideration
received or to be received by the holders of Common Stock (excluding cash
payments for fractional shares and cash payments made pursuant to dissenters’
appraisal rights) in connection with the transaction or transactions
constituting the Fundamental Change consists of shares of capital stock traded
on the New York Stock Exchange, the Nasdaq Global Select Market or the Nasdaq
Global Market (or their respective successors) or which will be so traded when
issued or exchanged in connection with the transaction that would otherwise be
a Fundamental Change (these securities being referred to as “Publicly Traded
Securities”) and as a result of this transaction or transactions the Notes
become convertible into such Publicly Traded Securities, excluding cash
payments for fractional shares, pursuant to the terms of this Supplemental
Indenture. 

          “Global
Notes” means certificated Notes in global form, without interest coupons,
substantially in the form of Exhibit A hereto and registered in the name
of DTC or a nominee of DTC. 

          “Holder”
or “Noteholder” means the Person in whose name a Note is registered in
the Security Register. 

          “Interest
Payment Date” means February 15 and August 15 of each year. The first
Interest Payment Date shall be August 15, 2010.

3

          “Issue
Date” means February 12, 2010. 

          “Original
Indenture” is as defined in the introductory paragraphs of this
Supplemental Indenture. 

          “Outstanding”
shall have the meaning set forth in Section 101 of the Original Indenture other
than any Notes repurchased by the Company as set forth in Section 2.09 of this
Supplemental Indenture. 

          “Publicly
Traded Securities” has the meaning provided in the definition of
Fundamental Change in this Section 1.01. 

          “Record
Date” means, in respect of a dividend or distribution to holders of Common
Stock, the date fixed for determination of holders of Common Stock entitled to
receive such dividend or distribution. 

          “Regular
Record Date” for the payment of interest on the Notes (including Additional
Interest, if any), means the close of business on February 1 (whether or
not a Business Day) next preceding the Interest Payment Date on February 15 and
the close of business on August 1 (whether or not a Business Day) next
preceding the Interest Payment Date on August 15. 

          “Scheduled
Trading Day” means a day that is scheduled to be a Trading Day on the
primary securities exchange or market on which the Common Stock is listed or
admitted to trading. If the Common Stock is not so listed or admitted to
trading, “Scheduled Trading Day” means a “Business Day”. 

          “SEC”
means the United States Securities and Exchange Commission. 

          “Securities
Act” means the Securities Act of 1933, as amended, and the rules and
regulations of the SEC promulgated thereunder. 

          “Securities
Custodian” means the custodian with respect to the Global Notes (as
appointed by DTC), or any successor Person thereto and shall initially be the
Trustee. 

          “Stock
Price” means, with respect to a Fundamental Change, the price per share of
Common Stock paid or deemed paid in connection with such Fundamental Change if
Holders of the Common Stock receive only cash as a result of such Fundamental
Change, or otherwise, the average of the Daily VWAP of the Common Stock for the
10 consecutive Trading-Day period ending on the Trading Day immediately
preceding the Effective Date (excluding such Effective Date). 

          “Supplemental
Indenture” means this Supplemental Indenture, as amended or supplemented
from time to time. 

          “Trading
Day” means a day during which trading in securities generally occurs on the
principal United States national or regional securities exchange on which the
Common Stock is then listed or admitted to trading or, if the Common Stock is
not then listed or admitted to trading on a United States national or regional
securities exchange, in the principal other market on which the Common Stock is
then traded; provided that if the Common Stock is not so listed or traded,
“Trading Day” means a “Business Day”. 

          “Trustee”
means Wells Fargo Bank, National Association, a national banking association
duly organized and existing under the laws of the United States of America, and
its successors and assigns.

          Other
Definitions. 

	
  

 	
  

 	
  

 
	
 Term

 	
  

 	
 Defined in Section

 
	

 

 	
  

 	

 

 
	
 “Additional
 Notes”

 	
  

 	
 2.01(g))

 
	
  

 	
  

 	
  

 
	
 “Adjustment
 Event”

 	
  

 	
 6.03(l)

 
	
  

 	
  

 	
  

 
	
 “Clearstream”

 	
  

 	
 5.02(a)

 

4

	
  

 	
  

 	
  

 
	
 Term

 	
  

 	
 Defined in Section

 
	

 

 	
  

 	

 

 
	
  

 	
  

 	
  

 
	
 “Company
 Notice”

 	
  

 	
 5.01(b)

 
	
  

 	
  

 	
  

 
	
 “Company
 Notice Date”

 	
  

 	
 5.01(b)

 
	
  

 	
  

 	
  

 
	
 “Conversion Date”

 	
  

 	
 6.02(b)

 
	
  

 	
  

 	
  

 
	
 “Determination
 Date”

 	
  

 	
 6.03 (l)

 
	
  

 	
  

 	
  

 
	
 “Effective
 Date”

 	
  

 	
 6.04(b)

 
	
  

 	
  

 	
  

 
	
 “Euroclear”

 	
  

 	
 5.02(a)

 
	
  

 	
  

 	
  

 
	
 “Expiration
 Time”

 	
  

 	
 6.03(e)

 
	
  

 	
  

 	
  

 
	
 “Fundamental
 Change Purchase Date”

 	
  

 	
 5.01(a)

 
	
  

 	
  

 	
  

 
	
 “Fundamental
 Change Purchase Notice”

 	
  

 	
 5.01(c)

 
	
  

 	
  

 	
  

 
	
 “Fundamental
 Change Purchase Price”

 	
  

 	
 5.01(a)

 
	
  

 	
  

 	
  

 
	
 “Indemnitees”

 	
  

 	
 7.01(a)

 
	
  

 	
  

 	
  

 
	
 “Losses”

 	
  

 	
 7.01(a)

 
	
  

 	
  

 	
  

 
	
 “Mandatory
 Conversion”

 	
  

 	
 6.09(a)

 
	
  

 	
  

 	
  

 
	
 “Mandatory
 Conversion Date”

 	
  

 	
 6.09(a)

 
	
  

 	
  

 	
  

 
	
 “Mandatory
 Conversion Press Release”

 	
  

 	
 6.09(a)

 
	
  

 	
  

 	
  

 
	
 “Notice of
 Mandatory Conversion”

 	
  

 	
 6.09(c)

 
	
  

 	
  

 	
  

 
	
 “Reorganization
 Event”

 	
  

 	
 6.05(a)

 
	
  

 	
  

 	
  

 
	
 “Reference
 Property”

 	
  

 	
 6.05(a)

 
	
  

 	
  

 	
  

 
	
 “Settlement
 Date”

 	
  

 	
 6.02(b)

 
	
  

 	
  

 	
  

 
	
 “Spin-Off”

 	
  

 	
 6.03(c)

 
	
  

 	
  

 	
  

 
	
 “Withholding
 Agent”

 	
  

 	
 2.04

 

ARTICLE II

THE NOTES

          Section
2.01 Title; Amount and Issue of Notes; Principal and Interest. 

                    (a)
Pursuant to the terms hereof and Section 301 of the Original Indenture, the
Company hereby creates a series of Securities designated as the “4.00%
Convertible Senior Notes due 2015” of the Company (the “Notes”) which Notes
shall be deemed “Securities” for all purposes under the Original Indenture. The
aggregate principal amount of Notes which may be authenticated and delivered
under this Supplemental Indenture is initially $575,000,000, not inclusive of
Notes to be authenticated and delivered upon registration of transfer of or in
exchange for, or in lieu of such Notes pursuant to the terms of this
Supplemental Indenture and the Original Indenture. The Notes shall be issuable
in registered form and in denominations of $2,000 and integral multiples of
$1,000 in excess thereof. 

                    (b)
The Notes shall mature on February 15, 2015. 

                    (c)
Interest on the Notes shall accrue at a rate of 4.00% per annum, from and
including the date specified on the face of such Notes until the principal
thereof is paid, deemed paid, or made available for 

5

payment.
Interest shall be payable semi-annually in arrears on February 15 and
August 15 in each year, commencing August 15, 2010. Interest on the
Notes shall be computed on the basis of a 360-day year comprised of twelve
30-day months. If any Interest Payment Date falls on a day that is not a
Business Day, such Interest Payment Date shall be postponed to the next
succeeding Business Day and no interest on such payment will accrue for the
period from the Interest Payment Date to such next succeeding Business Day. If
the Stated Maturity would fall on a day that is not a Business Day, the
required payment of interest, if any, and principal (and Additional Interest,
if any), will be made on the next succeeding Business Day and no interest on such
payment will accrue for the period from and after the Stated Maturity to such
next succeeding Business Day. If a Fundamental Change Purchase Date would fall
on a day that is not a Business Day, the Company will purchase the Notes
tendered for purchase on the next succeeding Business Day and no interest or
Additional Interest on such Notes will accrue for the period from and after the
earlier Fundamental Change Purchase Date to such next succeeding Business Day.
The Company will pay the Fundamental Change Purchase Price promptly following
the later of (i) such next succeeding Business Day or (ii) the time
of book entry transfer or the delivery of the Notes. 

                    (d)
A Holder of any Notes after 5:00 p.m., New York City time, on a Regular Record
Date shall be entitled to receive interest (including any Additional Interest),
on such Notes on the corresponding Interest Payment Date. Holders of Notes at
5:00 p.m., New York City time, on a Regular Record Date will receive payment of
interest (including any Additional Interest) payable on the corresponding
Interest Payment Date notwithstanding the conversion of such Notes at any time
after 5:00 p.m., New York City time on such Regular Record Date. Notes
surrendered for conversion during the period after 5:00 p.m., New York City
time, on any Regular Record Date to 9:00 a.m., New York City time, on the
corresponding Interest Payment Date must be accompanied by payment of an amount
equal to the interest (including any Additional Interest) that the Holder is to
receive on the Notes on such Interest Payment Date. 

          Notwithstanding
the foregoing, no such payment of interest (including any Additional Interest)
need be made by any converting Holder (i) for conversions following the
Regular Record Date immediately preceding the Stated Maturity, (ii) if the
Company has provided a specified a Mandatory Conversion Date in a Notice of
Mandatory Conversion, (iii) if the Company has specified a Fundamental Change
Purchase Date that is after a Regular Record Date and on or prior to the
corresponding Interest Payment Date, or (iv) to the extent of any overdue
interest (including any overdue Additional Interest) existing at the time of
conversion of such Note. Except where Notes surrendered for conversion must be
accompanied by payment as described above, no interest or Additional Interest
on converted Notes will be payable by the Company on any Interest Payment Date
subsequent to the Conversion Date or the Mandatory Conversion Date, as
applicable, and delivery of the shares of Common Stock pursuant to
Article VI of this Supplemental Indenture, together with any cash payment
for any fractional shares, upon conversion will be deemed to satisfy the
Company’s obligation to pay the principal amount of the Notes and accrued and
unpaid interest and Additional Interest, if any, to, but not including, the
related Conversion Date or Mandatory Conversion Date, as applicable. 

                    (e)
Principal of and interest (including Additional Interest, if any) on, Global
Notes shall be payable in immediately available funds. 

                    (f)
Principal on Definitive Notes shall be payable at the office or agency of the
Company maintained for such purpose, initially the principal office of the
Trustee in New York, New York. Interest (including Additional Interest, if
any), on Definitive Notes shall be payable (i) to each Holder of Notes
having an aggregate principal amount of $5,000,000 or less, by check mailed to
such Holder and (ii) to each Holder of Notes having an aggregate principal
amount of more than $5,000,000, either by check mailed to such Holder or, upon
application by such Holder to the Security Registrar not later than the
relevant Regular Record Date, by wire transfer in immediately available funds
to that Holder’s account within the United States, which application shall
remain in effect until the Holder notifies, in writing, the Security Registrar
to the contrary. 

                    (g)
The aggregate principal amount of Notes that may be issued on the date of this
Supplemental Indenture is $575,000,000, but shall be at least $500,000,000. The
Company may from time to time, without notice to, or consent of, the Holders of
the Notes, create and issue additional Notes under this Supplemental Indenture
equal in rank in all respects to the Notes initially issued (or in all respects
except for the issue date, conversion price, conversion rate and public
offering price of such additional Notes, the payment of interest accruing
before the issue date on such Notes, or the first payment of interest following
the issue date of such Notes) 

6

under this
Supplemental Indenture in an unlimited principal amount (“Additional Notes”); provided
that any such Additional Notes must be part of the same issue as the Notes initially
issued under this Supplemental Indenture for U.S. federal income tax purposes. 

          Section
2.02 Form of Notes. 

                    (a)
Except as otherwise provided pursuant to this Section 2.02, the Notes
shall be issued as Registered Securities without coupons in substantially the
form of Exhibit A hereto, with such applicable legends as are provided for
in Section 2.03. The Notes are not issuable in bearer form. The terms and
provisions contained in the form of Note shall constitute, and are hereby
expressly made, a part of this Supplemental Indenture and to the extent
applicable, the Company and the Trustee, by their execution and delivery of
this Supplemental Indenture, expressly agree to such terms and provisions and
to be bound thereby. Any of the Notes may have such letters, numbers or other
marks of identification and such notations, legends and endorsements as the
Officer executing the same may approve (execution thereof to be conclusive
evidence of such approval) 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 or automated quotation system on which the Notes may be
listed or designated for issuance, or to conform to usage. 

                    (b)
The Notes shall be issued initially in the form of one or more permanent Global
Notes, with such applicable legends as are provided for in Section 2.03.
Each Global Note shall be duly executed by the Company and authenticated and
delivered by the Trustee, and shall be registered in the name of DTC or its
nominee and retained by the Trustee, as Securities Custodian, at its Corporate
Trust Office, for credit to the accounts of the members of, or participants in,
DTC, holding the Notes evidenced thereby. The aggregate principal amount of the
Global Notes may from time to time be increased or decreased by adjustments
made on the records of the Trustee, as Securities Custodian, and of DTC or its
nominee, as hereinafter provided. 

          Section
2.03 Legends. 

                    (a)
Global Note Legend. 

          Each
Global Note shall bear the following legend (the “Global Note Legend”) on the
face thereof: 

          “UNLESS
THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY
TRUST COMPANY, A NEW YORK CORPORATION (“DTC”), NEW YORK, NEW YORK, TO THE
COMPANY OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY
CERTIFICATE ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR IN SUCH
OTHER NAME AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY
PAYMENT IS MADE TO CEDE & CO. OR TO SUCH OTHER ENTITY AS IS REQUESTED
BY AN AUTHORIZED REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE OR OTHER USE
HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL INASMUCH AS THE
REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST HEREIN. 

          TRANSFERS
OF THIS GLOBAL NOTE SHALL BE LIMITED TO TRANSFERS IN WHOLE, BUT NOT IN PART, TO
NOMINEES OF DTC OR TO A SUCCESSOR THEREOF OR SUCH SUCCESSOR’S NOMINEE AND
TRANSFERS OF PORTIONS OF THIS GLOBAL NOTE SHALL BE LIMITED TO TRANSFERS MADE IN
ACCORDANCE WITH THE RESTRICTIONS SET FORTH IN THE SUPPLEMENTAL INDENTURE AND
THE ORIGINAL INDENTURE.

7

          THIS
GLOBAL NOTE WAS ISSUED WITH ORIGINAL ISSUE DISCOUNT FOR PURPOSES OF SECTIONS
1272, 1273 AND 1275 OF THE UNITED STATES INTERNAL REVENUE CODE OF 1986, AS
AMENDED. THE ISSUE PRICE, ISSUE DATE, TOTAL AMOUNT OF ORIGINAL ISSUE DISCOUNT
AND YIELD TO MATURITY OF THIS GLOBAL NOTE MAY BE OBTAINED BY CONTACTING THE
COMPANY AT 1211 AVENUE OF THE AMERICAS, SUITE 2902, NEW YORK, NEW YORK 10036.” 

                    (b)
Legend for Definitive Notes. 

          Definitive
Notes will bear a legend substantially in the following form: 

          “THIS
NOTE WILL NOT BE ACCEPTED IN EXCHANGE FOR A BENEFICIAL INTEREST IN A GLOBAL
NOTE UNLESS THE HOLDER OF THIS NOTE, SUBSEQUENT TO SUCH EXCHANGE, WILL HOLD NO
NOTES. 

          THIS
NOTE WAS ISSUED WITH ORIGINAL ISSUE DISCOUNT FOR PURPOSES OF SECTIONS 1272,
1273 AND 1275 OF THE UNITED STATES INTERNAL REVENUE CODE OF 1986, AS AMENDED.
THE ISSUE PRICE, ISSUE DATE, TOTAL AMOUNT OF ORIGINAL ISSUE DISCOUNT AND YIELD
TO MATURITY OF THIS NOTE MAY BE OBTAINED BY CONTACTING THE COMPANY AT 1211
AVENUE OF THE AMERICAS, SUITE 2902, NEW YORK, NEW YORK 10036.” 

          Section
2.04 Security Registrar, Paying Agent, Withholding Agent, Securities Custodian
and Conversion Agent. The Company initially appoints the Trustee as
Security Registrar, Paying Agent, Securities Custodian and Conversion Agent for
the Notes. The Company may remove any Security Registrar, Paying Agent,
Securities Custodian or Conversion Agent upon written notice to such Security
Registrar, Paying Agent, Securities Custodian or Conversion Agent and to the
Trustee and without prior notice to the Holders; provided, however,
that no such removal shall become effective until (i) acceptance of any
appointment by a successor as evidenced by an appropriate agreement entered
into by the Company and such successor Security Registrar, successor Paying
Agent, successor Securities Custodian or successor Conversion Agent, as the
case may be, and delivered to the Trustee or (ii) notification to the Trustee
that the Trustee or the Company shall serve as Security Registrar, Paying
Agent, Securities Custodian or Conversion Agent until the appointment of a
successor in accordance with clause (i) above. The Security Registrar, Paying
Agent, Securities Custodian and Conversion Agent may resign at any time upon
written notice to the Company and the Trustee. Any corporation into which any
Security Registrar, Paying Agent, Securities Custodian or Conversion Agent
appointed hereunder may be merged or with which it may be consolidated or to which
the assets of such entity may be sold or otherwise transferred as a whole or
substantially as a whole, or any corporation resulting from any merger,
consolidation or transfer to which any Security Registrar, Paying Agent,
Securities Custodian or Conversion Agent hereunder shall be a party, shall be
the successor Security Registrar, successor Paying Agent, successor Securities
Custodian and successor Conversion Agent, as applicable, under this
Supplemental Indenture, without the execution or filing of any paper or any
further act on the part of the parties hereto, anything herein to the contrary
notwithstanding 

          If
withholding or backup withholding applies to any payments made or deemed made
by the Company to a Holder in respect of the Notes, the Paying Agent shall also
act as withholding agent (“Withholding Agent”) to withhold the appropriate
amount from any such payments to a Holder. 

          The
Company shall enter into an appropriate agency agreement with any Security
Registrar, Paying Agent, Securities Custodian, Conversion Agent or co-registrar
not a party to this Supplemental Indenture, which shall incorporate the terms
of the Trust Indenture Act, except in the case of a Paying Agent that acts as
Paying Agent solely in connection with an offer to purchase the Notes pursuant
to Article V of this Supplemental Indenture. The agreement shall implement the
provisions of this Supplemental Indenture that relate to such agent. The
Company shall notify the Trustee of the name and address of each such agent. If
the Company fails to maintain a Security Registrar, Paying Agent, Securities
Custodian or Conversion Agent, the Trustee shall act as such and shall be
entitled to appropriate compensation therefor. The Company or any of its
domestically organized, wholly-owned Subsidiaries may act as Paying Agent,
Security Registrar, Securities Custodian, Conversion Agent co-registrar or
transfer agent. 

8

          Section
2.05 No Sinking Fund. No sinking fund will be provided with respect to the
Notes issued under this Supplemental Indenture. 

          Section
2.06 Redemption of Notes. The Notes issued under this Supplemental
Indenture shall not be redeemable at the election of the Company prior to their
Stated Maturity. 

          Section
2.07 Discharge of Indenture, Defeasance. The Notes issued under this
Supplemental Indenture shall not be subject to the provisions of Article Four
of the Original Indenture. 

          Section
2.08 Ranking. The Notes are general unsecured obligations and rank senior
in right of payment to indebtedness of the Company that is expressly
subordinated in right of payment to the Notes and equally in right of payment
with its existing and future unsecured indebtedness and liabilities that are
not so subordinated. 

          Section
2.09 Repurchase and Cancellation. To the extent permitted by law, the
Company may repurchase any Notes in the open-market purchases or negotiated
transactions without prior notice to the Holders. The Company shall surrender
any Notes repurchased by the Company to the Trustee for cancellation as
provided by Section 309 of the Original Indenture and any such Notes
repurchased by the Company shall be deemed to be no longer Outstanding. Any
Notes surrendered for cancellation by the Company shall not be reissued or
resold. 

ARTICLE III

ADDITIONAL DEFAULTS AND REMEDIES

          Section
3.01 Additional Events of Default. For purposes only of this Supplemental
Indenture in respect of the Notes issued hereunder, the provisions of Section
501 of Article Five of the Original Indenture are hereby amended by replacing
the period at the end of subparagraph (11) thereof with “; or” and adding the
following subparagraphs thereafter: 

	
  

 	
  

 
	
  

 	
           (12) the
 Company shall fail to comply with its obligation to convert the Notes in accordance
 with the provisions of this Supplemental Indenture upon exercise of a
 Holder’s conversion right which default shall continue for a period of three
 Business Days after there has been given to the Company, by registered or
 certified mail, by the Trustee or by such Holder, a written notice specifying
 such default or breach and requiring it to be remedied and stating that such
 notice is a “Notice of Default” under the Original Indenture; or 

 
	
  

 	
  

 
	
  

 	
           (13) the
 Company shall fail to comply with its obligation to deliver any shares of
 Common Stock required to be delivered to a Holder entitled to receive the
 Change of Control Make-Whole or the Coupon Make-Whole, or any other premium
 required pursuant to the terms of this Supplemental Indenture; or 

 
	
  

 	
  

 
	
  

 	
           (14) the Company
 shall fail to deliver a notice of Fundamental Change in accordance with
 Section 5.01(b) of this Supplemental Indenture when due; or 

 
	
  

 	
  

 
	
  

 	
           (15) a
 Fundamental Change occurs and a Holder, upon exercising its right to require
 the Company to purchase any or all of such Holder’s notes, or any portion
 thereof in accordance with Section 5.01 of this Supplemental Indenture, is
 not entitled on the Fundamental Change Purchase Date to receive at least the
 same amount and form of consideration per share of Common Stock as was
 received by the existing holders of the Common Stock receiving the highest
 consideration in connection with such Fundamental Change; or 

 
	
  

 	
  

 
	
  

 	
           (16) the
 Company’s stockholders approve any plan or proposal for the liquidation or
 dissolution of the Company; or 

 
	
  

 	
  

 
	
  

 	
           (17) the
 Common Stock (or other capital stock into which the Notes are then
 convertible pursuant to the terms of this Supplemental Indenture) ceases to
 be listed on the New York Stock Exchange, the Nasdaq Global Select Market or
 the Nasdaq Global Market (or their respective successors). 

 

9

          Section
3.02 Acceleration of Maturity; Recission and Annulment. 

                    (a)
For purposes only of this Supplemental Indenture in respect of the Notes issued
hereunder, Section 502 of the Original Indenture is hereby amended by adding
the following sentence to the end of the first paragraph: 

	
  

 	
  

 
	
  

 	
 In addition,
 if an Event of Default specified in clause (15), (16) or (17) of Section 501
 with respect to the Company occurs with respect to the Notes, then the
 principal and any accrued an unpaid interest, including Additional Interest,
 if any, thereon shall ipso facto become and be immediately due and payable
 without any declaration or other act on the part of the Trustee or any Holder
 of the Notes. 

 

                    (b)
For the avoidance of doubt, the second paragraph of Section 502 of the Original
Indenture shall apply to the sentence added pursuant to Section 3.02(a) of this
Supplemental Indenture above. 

          Section
3.03 Exception to Remedies. Notwithstanding anything in this Supplemental
Indenture or the Original Indenture to the contrary, to the extent elected by
the Company, the sole remedy for an Event of Default relating to the failure by
the Company to comply with the reporting obligations set forth in Section 704
of the Original Indenture as further supplemented by this Supplemental
Indenture and for any failure to comply with § 314(a)(1) of the Trust Indenture
Act, will for the first 120 days after the occurrence of such an Event of
Default, consist exclusively of the right of Holders to receive Additional
Interest on the Notes at an annual rate equal to 0.25% of the principal amount
of the Notes. If the Company so elects, such Additional Interest will be
payable in the same manner and on the same dates as the stated interest payable
on the Notes. The Additional Interest will accrue on all outstanding Notes from
and including the date on which such Event of Default first occurs to but not
including the 120th day thereafter (or such earlier date on which such Event of
Default shall have been cured or waived). On such 120th day after such Event of
Default (if the Event of Default relating to such obligation is not cured or
waived prior to such 120th day), such Additional Interest will cease to accrue
and the Notes will be subject to acceleration as provided in the Original
Indenture. The provisions of this Section 3.03 shall not affect the rights of
Holders in the event of the occurrence of any other Event of Default. In the
event the Company does not elect to pay the Additional Interest upon such Event
of Default in accordance with this Section 3.03, the Notes shall be subject to
acceleration as provided in the Original Indenture. In order to elect such
Additional Interest remedy pursuant to this Section 3.03, the Company must
notify all Holders, the Trustee and the Paying Agent of such election on or
before the close of business on the date on which such Event of Default first
occurs, stating (i) the amount of such Additional Interest that is payable and
(ii) the date on which such Additional Interest is payable. 

ARTICLE IV

AMENDMENTS

          Section
4.01 Amendments. 

                    (a)
For purposes only of this Supplemental Indenture in respect of the Notes issued
hereunder, Section 902 of the Original Indenture is hereby amended by replacing
subparagraph (3) with the following: 

                    (3)
make any change that adversely affects the conversion rights of any Notes; 

                    (b)
For purposes only of this Supplemental Indenture in respect of the Notes issued
hereunder, Section 902 of the Original Indenture is hereby amended by replacing
the period at the end of subparagraph (4) with “; or” and adding the following
thereafter: 

	
  

 	
  

 
	
  

 	
           (5)
 reduce the Mandatory Conversion price, Fundamental Change Purchase Price of
 any Note, amend or modify the Coupon Make-Whole or amend or modify the Change
 of Control Make-Whole amounts set forth in Schedule A to this
 Supplemental Indenture, or amend or modify in any manner adverse to Holders
 the Company’s obligation to make such payment, whether through an amendment
 or waiver of provisions in the covenants, definitions or otherwise. 

 

10

ARTICLE V

PURCHASE OF NOTES AT THE OPTION OF HOLDERS
UPON A FUNDAMENTAL CHANGE

          Section
5.01 Purchase of Notes at the Option of the Holder Upon a Fundamental Change.

                    (a)
Purchase of Notes at the Option of the Holder. If a Fundamental Change
occurs at any time, each Holder shall have the right, at such Holder’s option,
to require the Company to purchase any or all of the Holder’s Notes, or any
portion of the principal amount thereof, that is equal to $1,000 or an integral
multiple thereof at a purchase price equal to 100% of the principal amount of
the Notes to be purchased from such Holder plus accrued and unpaid interest
thereon, including Additional Interest, if any, to but excluding the
Fundamental Change Purchase Date (the “Fundamental Change Purchase Price”); provided,
that, if the Fundamental Change Purchase Date occurs after a Regular
Record Date and on or prior to the corresponding Interest Payment Date, the
Company shall pay such accrued and unpaid interest plus Additional Interest, if
any, to but excluding the Fundamental Change Purchase Date to the record Holder
on the Regular Record Date corresponding to such Interest Payment Date and the
Fundamental Change Purchase Price payable to the Holder who presents the Note
for repurchase will be 100% of the principal amount of such Note. The Fundamental
Change Purchase Date shall be a date specified by the Company that is no later
than the 35th calendar day following the date of the Company Notice (excluding
such date of the Company Notice) delivered in connection with such Fundamental
Change pursuant to Section 5.01(b) (subject to extension to comply with
applicable law, as provided in Section 5.02(d)) (the “Fundamental Change
Purchase Date”). Any Notes purchased by the Company shall be paid for in Common
Stock. 

                    (b)
Notice of Fundamental Change. The Company shall deliver, or cause to be
delivered in accordance with the last paragraph of this Section 5.01(b),
notices of the occurrence of a Fundamental Change and of the purchase rights
arising as a result thereof (each, a “Company Notice”) to the Holders at their
addresses shown in the Security Register maintained by the Security Registrar,
and to the Trustee and the Paying Agent, on or before the 20th calendar day
after the occurrence of the Fundamental Change (each such date of delivery, a
“Company Notice Date”). Each Company Notice shall include a form of Fundamental
Change Purchase Notice to be completed by a Holder and shall state: 

                              (i)
the events causing the Fundamental Change; 

                              (ii)
the date of the Fundamental Change; 

                              (iii)
the last date on which a Holder may exercise its repurchase rights under
Section 5.01; 

                              (iv)
the Fundamental Change Purchase Price; 

                              (v)
the Fundamental Change Purchase Date; 

                              (vi)
whether the consummation of the Fundamental Change and the resulting repurchase
right resulted or will result in an Event of Default under Section 501(15); 

                              (vii)
the name and address of the Paying Agent and the Conversion Agent; 

                              (viii)
the applicable Conversion Rate and, if applicable, any adjustments to the
applicable Conversion Rate; 

                              (ix)
that the Notes with respect to which a Fundamental Change Purchase Notice has
been delivered by a Holder may be converted only if the Holder withdraws the
Fundamental Change Purchase Notice in accordance with the terms of this
Supplemental Indenture; and 

                              (x)
the procedures the Holder must follow to require the Company to purchase its
Notes pursuant to Section 5.01. 

11

          The
Company shall deliver to the Paying Agent on or prior to the Fundamental Change
Purchase Date, a number of shares of Common Stock equal to the aggregate
Fundamental Change Purchase Price to be paid in Common Stock divided by the
average of the Daily VWAP of the Common Stock for the twenty consecutive
Trading Days ending on the Trading Day immediately prior to the occurrence of
the Fundamental Change. The Company shall not issue fractional shares of Common
Stock upon repurchase of the Notes. Instead, the Company shall pay cash in lieu
of fractional shares based on the Daily VWAP of the Common Stock on the Trading
Day immediately prior to the occurrence of the Fundamental Change. If the
Common Stock has been replaced by Reference Property prior to the Fundamental
Change Purchase Date, the number of shares of Common Stock otherwise
deliverable on such date will instead be deliverable in the amount and type of
Reference Property that a holder of that number of shares of Common Stock would
have received in the relevant Reorganization Event. The Company shall use its
reasonable best efforts to cause a shelf registration statement to be declared
effective prior to the Fundamental Change Purchase Date for the sale of such
shares of Common Stock (or Reference Property, if applicable). 

          Simultaneously
with providing such Company Notice, the Company will publish a notice
containing the information in such Company Notice in a newspaper of general
circulation in The City of New York or publish such information on its then
existing website or through such other public medium as it may use at the time.

          At
the Company’s request, made at least three Business Days (or such lesser period
as agreed to by the Trustee) prior to the date upon which such notice is to be
mailed, and at the Company’s expense, the Trustee shall give the Company Notice
in the Company’s name; provided, however, that, in all cases, the
text of the Company Notice shall be prepared by the Company. 

                    (c)
Exercise of Option. For a Note to be so purchased at the option of the
Holder, the Holder must deliver, on or before the Business Day immediately
preceding the Fundamental Change Purchase Date (excluding such Fundamental
Change Purchase Date), subject to extension to comply with applicable law, the
Notes to be purchased, duly endorsed for transfer, together with a written
purchase notice (a “Fundamental Change Purchase Notice”) in the form entitled
“Form of Fundamental Change Purchase Notice” on the reverse side of the Notes
duly completed, to the Paying Agent. The Fundamental Change Purchase Notice
shall state: 

                              (i)
if the Notes are certificated, the certificate numbers of the Holder’s Notes to
be delivered for purchase; 

                              (ii)
the portion of the principal amount of the Notes to be purchased, which portion
must be $1,000 or an integral multiple thereof; and 

                              (iii)
that such Notes shall be purchased as of the Fundamental Change Purchase Date
pursuant to the terms and conditions specified in the Notes and this
Supplemental Indenture. 

                    (d)
Procedures. The Company shall purchase from a Holder on the Fundamental
Change Purchase Date, subject to extension to comply with applicable law,
pursuant to this Section 5.01, Notes if the principal amount of such Notes is
$1,000 or an integral multiple thereof if so requested by such Holder. 

          Any
purchase by the Company contemplated pursuant to the provisions of this Section
5.01 shall be consummated by the delivery of the Fundamental Change Purchase
Price, to be received by the Holder, to the Paying Agent as provided in Section
5.02(a), promptly following the later of the Fundamental Change Purchase Date
or the time of book-entry transfer or delivery of the Notes. 

          The
Company shall require each Paying Agent (other than the Trustee) to agree in
writing that the Paying Agent shall hold in trust for the benefit of Holders or
the Trustee all shares of Common Stock (or cash in lieu of fractional shares,
if any) held by the Paying Agent for the payment of the Fundamental Change
Purchase Price and shall notify the Trustee of any Default by the Company in
making any such payment. The Company at any time may require a Paying Agent to
deliver all shares of Common Stock held by it to the Trustee and to account for
any shares disbursed by the Paying Agent. Upon doing so, the Paying Agent shall
have no further liability for the shares of Common Stock delivered to the
Trustee. 

           The Company shall
not be required to make an offer to purchase the Notes in accordance with this Section 5.01 upon a
Fundamental Change if a third party makes the offer in the manner, at the times and otherwise in
compliance with the requirements set forth in this Article V applicable to an offer by the Company
to purchase the Notes upon a Fundamental Change and such third party purchases all Notes validly
tendered and not withdrawn upon such offer.

12

          Section
5.02 Further Conditions and Procedures for Purchase at the Option of the Holder
Upon a Fundamental Change. 

                    (a)
Effect of Fundamental Change Purchase Notice; Withdrawal; Effect of Event of
Default. Upon receipt by the Company of the Fundamental Change Purchase
Notice specified in, and the Notes to be purchased as provided in, Section
5.01(c), the Holder of the Notes in respect of which such Fundamental Change
Purchase Notice was given shall (unless such Fundamental Change Purchase Notice
is withdrawn as specified in this Section 5.02(a)) thereafter be entitled to
receive solely the Fundamental Change Purchase Price with respect to such
Notes. Such Fundamental Change Purchase Price shall be delivered by the Paying
Agent, solely from shares of Common Stock received from the Company for such
purpose (and any cash in lieu of fractional shares), to such Holder promptly
following the later of (x) the Fundamental Change Purchase Date with respect to
such Notes (provided the conditions in this Article V have been satisfied) and
(y) the time of delivery or book-entry transfer of such Notes to the Paying
Agent by the Holder thereof in the manner required by Section 5.01. Notes in
respect of which a Fundamental Change Purchase Notice has been given by the
Holder thereof may not be converted on or after the date of the delivery of
such Fundamental Change Purchase Notice unless such Fundamental Change Purchase
Notice has first been validly withdrawn as specified in this Section 5.02(a).
Notwithstanding anything herein to the contrary, any Holder delivering to the
Paying Agent the Fundamental Change Purchase Notice contemplated by Section
5.01(c), shall have the right at any time prior to the close of business on the
Business Day prior to the Fundamental Change Purchase Date to withdraw such Fundamental
Change Purchase Notice (in whole or in part) by delivery of a written notice of
withdrawal to the Paying Agent in accordance with this Section 5.02(a). 

          The
Paying Agent shall promptly notify the Company of the receipt by it of any
Fundamental Change Purchase Notice or written notice of withdrawal thereof. 

          On
or before 10:00 a.m. (New York City time) on the Fundamental Change Purchase
Date, the Company shall deliver to the Paying Agent (or if the Company or an
Affiliate of the Company is acting as the Paying Agent, shall segregate and
hold in trust) a number of shares of Common Stock sufficient to satisfy the
aggregate Fundamental Change Purchase Price of the Notes to be purchased
pursuant to Section 5.01 (plus any cash in lieu of fractional shares). If the
Paying Agent holds, in accordance with the terms of this Supplemental
Indenture, a number of shares of Common Stock sufficient to pay the Fundamental
Change Purchase Price of such Notes on the second Business Day after the Fundamental
Change Purchase Date, then (i) the Notes tendered for purchase and not
withdrawn shall cease to be outstanding and interest, including Additional
Interest, if any, shall cease to accrue (whether or not book-entry transfer of
such Notes is made or whether or not the Note is delivered to the Paying Agent)
on the Fundamental Change Purchase Date; and (ii) all other rights of the
Holders with respect to Notes tendered for purchase will terminate (other than
the right to receive the Fundamental Change Purchase Price upon delivery or
transfer of the Notes). Nothing herein shall preclude any withholding tax
required by law. 

          A
Fundamental Change Purchase Notice may be withdrawn by means of a written
notice of withdrawal delivered to the office of the Paying Agent prior to the
close of business on the Business Day prior to the Fundamental Change Purchase
Date (excluding such Fundamental Change Purchase Date). The notice of
withdrawal shall state: 

                              (i)
the principal amount of the withdrawn Notes; 

                              (ii)
if Definitive Notes have been issued, the certificate numbers of the withdrawn
Notes, or if not certificated, the written notice of withdrawal must comply
with appropriate procedures of DTC, and if applicable, Clearstream Banking
Luxembourg S.A. (“Clearstream”) and Euroclear Bank S.A./N.A. (“Euroclear”);
and 

                              (iii)
the principal amount, if any, of such Notes which remains subject to the
original Fundamental Change Purchase Notice. 

          If
the Notes are Definitive Notes, the Paying Agent shall promptly return to the
respective Holders thereof any Notes with respect to which a Fundamental Change
Purchase Notice has been withdrawn in compliance with this Indenture. 

13

                    (b)
Notes Purchased in Part. Any Notes that are to be purchased only in part
shall be surrendered at the office of the Paying Agent (with, if the Company or
the Trustee so requires, due endorsement by, or a written instrument of
transfer in form satisfactory to the Company and the Trustee duly executed by,
the Holder thereof or such Holder’s attorney duly authorized in writing) and
the Company shall execute and the Trustee or the Authenticating Agent shall
authenticate and deliver to the Holder of such Notes, without service charge, a
new Note or Notes, of any authorized denomination as requested by such Holder
in aggregate principal amount equal to, and in exchange for, the portion of the
principal amount of the Notes so surrendered which is not purchased. 

                    (c)
Covenant to Comply with Securities Laws Upon Purchase of Notes. In
connection with any offer to purchase, or purchase of, Notes under Section
5.01, the Company shall, to the extent applicable, (a) comply with Rules 13e-4
and 14e-1 (and any successor provisions thereto) under the Exchange Act, if
applicable; (b) file the related Schedule TO (or any successor schedule, form
or report) under the Exchange Act, if applicable; and (c) otherwise comply with
all applicable federal and state securities laws. To the extent that the
provisions of any securities laws or regulations conflict with the provisions
of this Supplemental Indenture as described in this Article V, compliance by
the Company with such laws and regulations shall not in and of itself cause a
breach of the Company’s obligations described in this Article V. 

                    (d)
Repayment to the Company. The Trustee and the Paying Agent shall return
to the Company any cash or property that remains unclaimed, together with
interest that the Trustee or Paying Agent, as the case may be, has expressly
agreed in writing to pay, if any, that is held by them for the payment of a
Fundamental Change Purchase Price; provided, however, that to the
extent that the aggregate amount of property deposited by the Company pursuant
to Section 5.02(b), as applicable, exceeds the aggregate Fundamental Change
Purchase Price of the Notes or portions thereof which the Company is obligated
to purchase as of the Fundamental Change Purchase Date, then promptly on and
after the second Business Day following the Fundamental Change Purchase Date,
the Trustee and the Paying Agent shall return any such excess to the Company
together with interest that the Trustee or Paying Agent, as the case may be,
has expressly agreed in writing to pay, if any. 

                    (e)
Officers’ Certificate. At least three Business Days (or such lesser
period as agreed to by the Trustee) before the Company Notice Date, the Company
shall deliver an Officers’ Certificate to the Trustee specifying whether the
Company desires the Trustee to give the Company Notice required by Section
5.02(a) hereof. 

                    (f)
Taxes on Repurchase. If a Holder exercises its right to require the
Company to repurchase the Notes pursuant to this Section 5.02, the Company
shall pay any documentary, stamp or similar issue or transfer tax due on the
issuance of shares of Common Stock upon such repurchase. However, the Holder
shall pay any such tax which is due because the Holder requests the shares to
be issued in a name other than the Holder’s name. The Paying Agent may refuse
to deliver the certificates representing the shares of Common Stock being
issued in a name other than the Holder’s name until the Paying Agent receives a
sum sufficient to pay any tax which shall be due because the shares are to be
issued in a name other than the Holder’s name, but the Paying Agent shall have
no duty to determine if any such tax is due. Nothing herein shall preclude any
withholding of tax required by law. 

                    (g)
Certain Covenants of the Company. 

                              (i)
The Company shall, prior to issuance of any Notes hereunder, and from time to
time as may be necessary, reserve out of its authorized but unissued Common
Stock or shares of Common Stock held in treasury, sufficient number of shares
of Common Stock, free of preemptive rights, to permit the repurchase of the
Notes pursuant to this Section 5.02. 

                              (ii)
All shares of Common Stock delivered upon repurchase of the Notes shall be
newly issued shares or treasury shares, shall be duly and validly issued and
fully paid and nonassessable and shall be free from preemptive rights and free
of any lien or adverse claim. 

                              (iii)
The Company shall endeavor to comply promptly with all applicable federal and
state securities laws regulating the issuance and delivery of shares of Common
Stock upon the repurchase of Notes. 

                              (iv)
The Company shall use its reasonable best efforts to ensure that at all times it has
shares of its Common Stock deliverable upon a conversion or repurchase of the Notes
approved for listing with the New York Stock Exchange, or if the Company’s Common Stock
is no longer so listed on the New York Stock Exchange, Nasdaq Global Select Market or
the Nasdaq Global Market (or their respective successors).  Following any repurchase or
conversion of the Notes, to the extent the listing of the shares of Common Stock delivered
upon such repurchase or conversion has not been so approved, the Company shall promptly
comply with the listing requirements of the applicable securities exchange.
 
14

          Section
5.03 Ownership Limit. Notwithstanding any other provision of the Original
Indenture, this Supplemental Indenture or the Notes, no Holder of Notes shall
be entitled to convert such Notes for Common Stock to the extent that the
receipt of such Common Stock would violate any of the limitations on ownership
of Common Stock contained in the Charter. Any attempted conversion of Notes
that would result in the issuance of Common Stock in excess of such ownership
limit in the absence of an exemption shall be void to the extent of the number
of shares of Common Stock that would cause such violation and the related Note
or portion thereof shall be returned to the Holder as promptly as practicable.
The Company shall have no further obligation to the Holder with respect to such
voided conversion and such Notes shall be treated as if they had not been
submitted for conversion. A Holder of returned Notes may resubmit such Notes
for conversion at a later date subject to compliance with the terms hereof and
the ownership limits set forth in the Charter. 

ARTICLE VI

CONVERSION

          Section
6.01 Article Seventeen Added. The following is hereby added as Article
Seventeen of the Original Indenture in respect of the Notes established and
issued under this Supplemental Indenture. 

          Section
6.02 Conversion of Notes. 

                    (a)
Right to Convert. Subject to the restrictions on ownership of Common
Stock as set forth in Section 5.03 of this Supplemental Indenture and to the
procedures for conversion set forth in this Article VI, a Holder may convert
its Notes at their full principal amount, or any portion of their principal
amount that is equal to $1,000 or an integral multiple thereof, into shares of
Common Stock at the Conversion Rate in effect at the time of conversion at any
time prior to the close of business on the second Scheduled Trading Day
immediately preceding the Stated Maturity (excluding the date of such Stated
Maturity). No payment or adjustment shall be made for dividends on, or other
distributions with respect to, any Common Stock except as expressly provided in
this Article VI. The Company may also require a Holder to convert its Notes in
connection with a Mandatory Conversion pursuant to Section 6.09 of this
Supplemental Indenture. 

                    (b)
Conversion Procedures. The following procedures shall apply to convert
Notes: 

                              (i)
In respect of a Definitive Note, a Holder must (A) complete and manually sign
the conversion notice on the back of the Note, or a facsimile of such
conversion notice; (B) deliver such conversion notice, which is irrevocable,
and the Note to the Conversion Agent; (C) if required, furnish appropriate
endorsements and transfer documents as may be required by the Conversion Agent
and, if required pursuant to Section 6.02(d), pay all transfer or similar
taxes; and (D) if required pursuant to Section 2.01(d) of this Supplemental
Indenture, pay funds equal to interest payable on the next Interest Payment
Date to which such Holder is not entitled; provided, however, that in
connection with a Mandatory Conversion, a Holder shall only be required to
comply with subpoints (C) and (D) of this Section 6.02(b)(i). 

                              (ii)
In respect of a beneficial interest in a Global Note, a Beneficial Owner must
comply with the procedures of DTC and, if applicable, Euroclear and
Clearstream, for converting a beneficial interest in a Global Note and, if
required pursuant to Section 2.01(d) of this Supplemental Indenture, pay funds
equal to interest payable on the next Interest Payment Date to which such
Beneficial Owner is not entitled, and if required, pay all taxes or duties
required pursuant to Section 6.02(d), if any. 

                              (iii)
The date a Holder complies with the foregoing requirements is the “Conversion
Date” hereunder. At the Conversion Date or the Mandatory Conversion Date (as
defined in Section 6.09 of this Supplemental Indenture) the rights of the
Holders of such converted Notes as Holders shall cease, and the Person or
Persons entitled to receive the shares of Common Stock issuable upon conversion
shall be treated for all purposes as the record holder or holders of such
Common Stock as and after such time. The Company shall issue and shall deliver
at such office or agency a certificate or certificates for the number of full
shares of Common Stock issuable upon conversion, together with payment in cash
in lieu of any fractional shares, as provided in Section 6.02(c) by (1) the
Mandatory Conversion Date in the case of a Mandatory Conversion, and (2) in all
other cases, the third Business 

15

Day
immediately following the Conversion Date (excluding such Conversion Date)
(each, the “Settlement Date”). A Holder may convert a portion of its Notes only
if the principal amount of such portion is $1,000 or an integral multiple
thereof. 

                              (iv)
In the case of any Note which is converted in part only, upon such conversion
the Company shall execute and the Trustee shall authenticate and deliver to the
Holder thereof, at the expense of the Company, a new Note or Notes of
authorized denominations in aggregate principal amount equal to the unconverted
portion of the principal amount of such Note. 

                              (v)
If a Holder has already delivered a Fundamental Change Purchase Notice in
connection with a Fundamental Change, with respect to a Note, the Holder may
not surrender that Note for conversion until the Holder has validly withdrawn
the Fundamental Change Purchase Notice in accordance with this Supplemental
Indenture. Upon surrender of a Note that is converted in part, the Company
shall execute, and the Trustee or the Authenticating Agent shall authenticate
and deliver to the Holder, a new Note in an authorized denomination equal in
principal amount to the unconverted portion of the Note surrendered. 

                              (vi)
If more than one Note shall be surrendered for conversion at one time by the
same Holder, the number of full shares of Common Stock which shall be issuable
upon conversion thereof shall be computed on the basis of the aggregate
principal amount of the Notes (or specified portions thereof) so surrendered. 

                    (c)
Cash Payments in Lieu of Fractional Shares. The Company shall not issue
fractional shares of Common Stock upon conversion of Notes. Instead the Company
shall deliver cash, rounded to the nearest whole cent, for such fractional
shares based on the Daily VWAP of the Common Stock on the applicable Conversion
Date or Mandatory Conversion Date, as applicable. The Company’s delivery to the
Holder of the shares of Common Stock together with any cash payment for any
fractional share into which a Note is convertible, will be deemed to satisfy in
full the Company’s obligation to pay (i) the principal amount of the Note; and
(ii) accrued and unpaid interest and Additional Interest, if any, to, but not
including, the Conversion Date or the Mandatory Conversion Date, as applicable.
As a result, accrued and unpaid interest and Additional Interest, if any, to,
but not including, the Conversion Date or the Mandatory Conversion Date, as
applicable, will be deemed to be paid in full rather than cancelled,
extinguished or forfeited. 

          Notwithstanding
the preceding paragraph, if Notes are converted after 5:00 p.m., New York City
time, on a Regular Record Date for the payment of interest, Holders of such
Notes at 5:00 p.m., New York City time, on such Regular Record Date will
receive the interest and Additional Interest, if any, payable on such Notes on
the corresponding Interest Payment Date notwithstanding the conversion. Notes,
upon surrender for conversion during the period from 5:00 p.m., New York City
time, on any Regular Record Date to 9:00 a.m., New York City time, on the
immediately following Interest Payment Date, must be accompanied by funds equal
to the amount of interest and Additional Interest, if any, payable on such
Interest Payment Date on the Notes so converted; provided, that no such
payment need be made (i) for conversions following the Regular Record Date
immediately preceding Stated Maturity; (ii) if the Company has provided a
specified a Mandatory Conversion Date in a Notice of Mandatory Conversion;
(iii) if the Company has specified a Fundamental Change Purchase Date that is
after a Regular Record Date and on or prior to the corresponding Interest
Payment Date; or (iv) to the extent of any overdue interest (including any
overdue Additional Interest), if any overdue interest exists at the time of
conversion with respect to such Note. 

                    (d)
Taxes on Conversion. If a Holder converts Notes or the Company exercises
Mandatory Conversion rights, the Company shall pay any documentary, stamp or
similar issue or transfer tax due on the issuance of shares of Common Stock
upon such conversion. However, the Holder shall pay any such tax which is due
because the Holder requests the shares to be issued in a name other than the
Holder’s name. The Conversion Agent may refuse to deliver the certificates
representing the shares of Common Stock being issued in a name other than the
Holder’s name until the Conversion Agent receives a sum sufficient to pay any
tax which shall be due because the shares are to be issued in a name other than
the Holder’s name, but the Conversion Agent shall have no duty to determine if
any such tax is due. Nothing herein shall preclude any withholding of tax
required by law. 

16

                    (e)
Certain Covenants of the Company. 

                              (i)
The Company shall, prior to issuance of any Notes hereunder, and from time to
time as may be necessary, reserve out of its authorized but unissued Common
Stock or shares of Common Stock held in treasury, sufficient number of shares
of Common Stock, free of preemptive rights, to permit the conversion of the
Notes pursuant to Section 6.02(a). 

                              (ii)
All shares of Common Stock delivered upon conversion of the Notes shall be
newly issued shares or treasury shares, shall be duly and validly issued and
fully paid and nonassessable and shall be free from preemptive rights and free
of any lien or adverse claim. 

                              (iii)
The Company shall endeavor to comply promptly with all applicable federal and
state securities laws regulating the issuance and delivery of shares of Common
Stock upon the conversion of Notes. 

                              (iv)
Before taking any action which would cause an adjustment increasing the
Conversion Rate to an amount that would cause the Conversion Price to be
reduced below the then par value per share of the Common Stock, if any, of the
shares of Common Stock issuable upon conversion of the Notes, the Company will
take all corporate action which may, in the opinion of its counsel, be
necessary in order that the Company may validly and legally issue shares of
such Common Stock at such adjusted Conversion Rate. 

          Section
6.03 Adjustments to Conversion Rate. The Conversion Rate shall be adjusted
from time to time by the Company as described below, except that the Company
will not make any adjustments to the Conversion Rate if Holders of the Notes
participate (as a result of holding the Notes, and at the same time as holders
of the Common Stock participate) in any of the transactions described in this Section
6.03 as if such Holders of the Notes held a number of shares of the Common
Stock equal to the applicable Conversion Rate, multiplied by the principal
amount (expressed in thousands) of Notes held by such Holders, without having
to convert their Notes. 

                    (a)
If the Company issues shares of Common Stock as a dividend or distribution on
shares of the Common Stock, or effects a share split or share combination, the
Conversion Rate will be adjusted based on the following formula: 

	
  

 	
  

 
	
 CR1=CR0 x 

 	
 OS1

 
	

 

 
	
  

 	
 OS0

 

	
  

 	
  

 	
  

 
	
  

 	
   where,

 	
  

 
	
  

 	
  

 	
  

 
	
  

 	
 CR0 =

 	
 the
 Conversion Rate in effect immediately prior to the Ex-Dividend Date of such
 dividend or distribution, or the effective date of such share split or share
 combination, as applicable 

 
	
  

 	
  

 	
  

 
	
  

 	
 CR1
 =

 	
 the Conversion
 Rate in effect immediately after such Ex-Dividend Date or effective date, as
 applicable

 
	
  

 	
  

 	
  

 
	
  

 	
 OS0 =

 	
 the number
 of shares of Common Stock outstanding immediately prior to such Ex-Dividend Date or effective date, as
 applicable 

 
	
  

 	
  

 	
  

 
	
  

 	
 OS1
 =

 	
 the number of
 shares of Common Stock outstanding immediately prior to such Ex-Dividend Date
 or effective date, as applicable, after giving pro forma effect to such
 dividend, distribution, share split or share combination 

 

Such adjustment shall become
effective immediately after 9:00 a.m., New York City time, on the Business Day
following the Record Date for such dividend or distribution, or the date fixed
for determination for such share split or share combination. The Company will
not pay any dividend or make any distribution on shares of Common Stock held in
treasury by the Company. If any dividend or distribution of the type described
in this Section 6.03(a) is 

17

declared but
not so paid or made, the Conversion Rate shall again be adjusted to the
Conversion Rate that would then be in effect if such dividend or distribution
had not been declared. 

                    (b)
If the Company distributes to holders of all or substantially all the Common
Stock any rights or warrants entitling them for a period of not more than 60
calendar days to subscribe for or purchase shares of Common Stock at a price
per share less than the average of the Daily VWAP of the Common Stock for the
10 consecutive Trading-Day period ending on the Trading Day immediately
preceding the date of announcement of such distribution (excluding such date of
announcement), the Conversion Rate will be adjusted based on the following
formula: 

	
  

 	
  

 
	
 CR1=CR0 x  

 	
 OS0+X 

 
	
  

 	

 
	
  

 	
 OS0+Y

 

          where,

	
  

 	
  

 	
  

 
	
  

 	
 CR0 =

 	
 the
 Conversion Rate in effect immediately prior the Ex-Dividend Date for such
 distribution

 
	
  

 	
  

 	
  

 
	
  

 	
 CR1
 =

 	
 the
 Conversion Rate in effect immediately after such Ex-Dividend Date

 
	
  

 	
  

 	
  

 
	
  

 	
 OS0 =

 	
 the number
 of shares of Common Stock outstanding immediately after such Ex-Dividend Date

 
	
  

 	
  

 	
  

 
	
  

 	
 X =

 	
 the total
 number of shares of Common Stock issuable pursuant to such rights or warrants

 
	
  

 	
  

 	
  

 
	
  

 	
 Y =

 	
 the number
 of shares of Common Stock equal to the aggregate price payable to exercise
 such rights or warrants divided by the average of the Daily VWAP of the
 Common Stock over the 10 consecutive Trading-Day period ending on the Trading
 Day immediately preceding the date of announcement of the distribution of
 such rights or warrants (excluding such date of announcement)

 

Such
adjustment shall be successively made whenever any such rights or warrants are
issued and shall become effective immediately after 9:00 a.m., New York City
time, on the Business Day following the date fixed for such determination. The
Company shall not issue any such rights, options or warrants in respect of
shares of Common Stock held in treasury by the Company. To the extent that
shares of Common Stock are not delivered after the expiration of such rights or
warrants, or such rights or warrants are not exercised prior to their
expiration, the Conversion Rate shall be readjusted to the Conversion Rate that
would then be in effect had the adjustments made upon the issuance of such
rights or warrants been made on the basis of delivery of only the number of
shares of Common Stock actually delivered. If such rights or warrants are not
so issued, the Conversion Rate shall again be adjusted to be the Conversion
Rate that would then be in effect if such date fixed for the determination of
stockholders entitled to receive such rights or warrants had not been fixed. 

          In
determining whether any rights or warrants entitle the Holders to subscribe for
or purchase shares of Common Stock at less than such Daily VWAP, and in
determining the aggregate offering price of such shares of Common Stock, there
shall be taken into account any consideration received by the Company for such
rights or warrants and any amount payable on exercise or conversion thereof,
the value of such consideration, if other than cash, to be determined by the
Company’s Board of Directors. 

                    (c)
If the Company distributes shares of its capital stock, evidences of its
indebtedness or other assets or property of the Company to holders of all or
substantially all the Common Stock, excluding: 

                              (i)
dividends or distributions and rights or warrants referred to in Section
6.03(a) or (b) above; 

                              (ii)
dividends or distributions paid exclusively in cash; and 

                              (iii)
as described below in this Section 6.03(c) with respect to Spin-Offs, then the
Conversion Rate will be adjusted based on the following formula: 

18

	
  

 	
  

 
	
 CR1=CR0 x 

 	
 SP0

 
	
  

 	

 
	
  

 	
 SP0-FMV

 

          where,

	
  

 	
  

 	
  

 
	
  

 	
 CR0 = 

 	
 the
 Conversion Rate in effect immediately prior to the Ex-Dividend Date for such
 distribution

 
	
  

 	
  

 	
  

 
	
  

 	
 CR1
 =

 	
 the
 Conversion Rate in effect immediately after such Ex-Dividend Date

 
	
  

 	
  

 	
  

 
	
  

 	
 SP0 =

 	
 the average
 of the Daily VWAP of the Common Stock over the 10 consecutive Trading-Day
 period ending on the Trading Day immediately preceding the Ex-Dividend Date
 for such distribution (excluding such Ex-Dividend Date) 

 
	
  

 	
  

 	
  

 
	
  

 	
 FMV =

 	
 the Fair
 Market Value (as determined by the Company’s Board of Directors) of the shares
 of capital stock, evidences of indebtedness, assets or property distributed
 with respect to each outstanding share of Common Stock on the Record Date for
 such distribution. 

 

Such
adjustment shall become effective immediately prior to 9:00 a.m., New York City
time, on the Business Day following the date fixed for the determination of
stockholders entitled to receive such distribution. With respect to an
adjustment pursuant to this clause (c) where there has been a payment of a
dividend or other distribution on the Common Stock in shares of capital stock
of any class or series, or similar equity interest, of or relating to a
Subsidiary or other business unit (a “Spin-Off”), the Conversion Rate in effect
immediately prior to 5:00 p.m., New York City time, on the effective date of
such Spin-Off will be increased based on the following formula: 

	
  

 	
  

 
	
 CR1=CR0
 x

 	
 FMV0+MP0

 
	
  

 	

 
	
  

 	
 MP0

 

          where,

	
  

 	
  

 
	
 CR0 =

 	
 the
 Conversion Rate in effect immediately prior to 5:00 p.m., New York City time,
 on the effective date of the Spin-Off

 
	
  

 	
  

 
	
 CR1
 =

 	
 the
 Conversion Rate in effect immediately after the effective date of the
 Spin-Off

 
	
  

 	
  

 
	
 FMV0 =

 	
 the average
 of the Daily VWAP of the capital stock or similar equity interest distributed
 to holders of Common Stock applicable to one share of Common Stock over the
 first 10 consecutive Trading-Day period from, and including, the effective
 date of the Spin-Off

 
	
  

 	
  

 
	
 MP0 =

 	
 the average
 of the Daily VWAP of Common Stock over the first 10 consecutive Trading-Day
 period from, and including, the effective date of the Spin-Off. 

 

Such
adjustment shall occur on the tenth Trading Day from, and including, the
effective date of the Spin-Off and shall be applied on a retroactive basis
from, and including, the effective date of the Spin-Off; provided that
in respect of any conversion occurring prior to the effective date of the
Spin-Off with respect to which the Settlement Date would occur during the 10
Trading Days from, and including, the effective date of any Spin-Off,
references with respect to the Spin-Off to the 10 consecutive Trading-Day
period shall be deemed replaced with such lesser number of Trading Days as have
elapsed between the effective date of such Spin-Off and the Settlement Date in
determining the applicable Conversion Rate; provided, further,
that in respect of any conversion occurring prior to the effective date of the
Spin-Off with respect to which the Settlement Date would occur during the three
Trading Days from, and including, the effective date of such Spin-Off,
references to the 10 consecutive Trading-Day period shall be deemed replaced
with a three consecutive Trading-Day period with such adjustment to the
Conversion Rate being applied on a retroactive basis from, and including, the
effective date of the Spin-Off.

19

 

                    (d)
If the Company makes any dividend or any other distribution of cash to the
holders of all or substantially all of the Common Stock, then immediately prior
to the opening of business on the Ex-Dividend Date for such dividend or
distribution the Conversion Rate will be increased based on the following
formula: 

	
  

 	
  

 
	
 CR1=CR0
 x 

 	
 SP0

 
	
  

 	

 
	
  

 	
 SP0-C

 

          where, 

	
  

 	
  

 
	
 CR0 =

 	
 the
 Conversion Rate in effect immediately prior to the Ex-Dividend Date for such
 dividend or distribution

 
	
  

 	
  

 
	
 CR1
 =

 	
 the
 Conversion Rate in effect immediately after the Ex-Dividend Date for such
 dividend or distribution

 
	
  

 	
  

 
	
 SP0 =

 	
 the average
 of the Daily VWAP of the Common Stock for each Trading Day in the five
 consecutive Trading Day period ending on the Trading Day immediately preceding
 the Ex-Dividend Date for such dividend or distribution (excluding such
 Ex-Dividend Date)

 
	
  

 	
  

 
	
 C =

 	
 the amount
 in cash per share the Company distributes to holders of Common Stock. 

 

In connection
with any adjustment to the Conversion Rate based on this Section 6.03(d), the
Company must issue a press release for publication through Dow Jones &
Company, Inc., Bloomberg Business News, BusinessWire, or PR Newswire or a
substantially equivalent financial news organization within five Business Days
following the Record Date for such dividend or distribution (excluding such
record date), announcing such an adjustment. If any dividend or distribution of
the type described in this Section 6.03(d) is declared but not so paid or made,
the Conversion Rate will again be adjusted to the Conversion Rate that would
then be in effect if such dividend or distribution had not been declared. 

                    (e)
If the Company or any of its Subsidiaries makes a payment in respect of a
tender or exchange offer for Common Stock, to the extent that the cash and
value of any other consideration included in the payment per share of Common
Stock exceeds the Daily VWAP of the Common Stock on the Trading Day next
succeeding the last date on which tenders or exchanges may be made pursuant to
such tender or exchange offer (such last date, the “Expiration Time”), the
Conversion Rate will be increased based on the following formula: 

	
  

 	
  

 
	
 CR1=CR0
 x 

 	
 AC+(SP1xOS1)

 
	
  

 	

 
	
  

 	
 OS0xSP1

 

          where, 

	
  

 	
  

 
	
 CR0 =

 	
 the
 Conversion Rate in effect immediately prior to the effective date of the
 adjustment

 
	
  

 	
  

 
	
 CR1
 =

 	
 the
 Conversion Rate in effect immediately after the effective date of the
 adjustment

 
	
  

 	
  

 
	
 AC =

 	
 the
 aggregate value of all cash and any other consideration (as determined by the
 Company’s Board of Directors) paid or payable for shares accepted for
 purchase or exchange in such tender or exchange offer

 
	
  

 	
  

 
	
 OS0 =

 	
 the number
 of shares of Common Stock outstanding immediately prior to the date such
 tender or exchange offer expires

 
	
  

 	
  

 
	
 OS1
 =

 	
 the number
 of shares of Common Stock outstanding immediately after the date such tender
 or exchange offer expires (after giving effect to the reduction of shares
 accepted for purchase or exchange in such tender or exchange offer)

 
	
  

 	
  

 
	
 SP1
 =

 	
 the average
 of the Daily VWAP of the Common Stock over the 10 consecutive Trading-Day
 period 

 

20

	
  

 	
  

 
	
  

 	
 commencing
 on the Trading Day next succeeding the date such tender or exchange offer
 expires.

 

Such
adjustment will occur on the tenth Trading Day from, and including, the Trading
Day next succeeding the date such tender or exchange offer expires and shall be
applied on a retroactive basis from, and including, the Trading Day next
succeeding the date such tender or exchange offer expires; provided that in
respect of any conversion occurring prior to the date such tender or exchange
offer expires with respect to which the Settlement Date would occur during the
10 Trading Days from, and including, the Trading Day next succeeding the date
such tender or exchange offer expires, references with respect to the tender or
exchange offer to the 10 consecutive Trading-Day period shall be deemed
replaced with such lesser number of Trading Days as have elapsed between the
Trading Day next succeeding the date such tender or exchange offer expires and
the Settlement Date in determining the applicable Conversion Rate.  

          If
the Company is obligated to purchase shares pursuant to any such tender or
exchange offer, but the Company is permanently prevented by applicable law from
effecting any such purchases or all such purchases are rescinded, the
Conversion Rate shall again be adjusted to be the Conversion Rate that would
then be in effect if such tender or exchange offer had not been made. 

                    (f)
The Company may (but is not required to) increase the Conversion Rate to avoid
or diminish income tax to holders of Common Stock or rights to purchase Common
Stock in connection with a dividend or distribution of shares (or rights to
acquire shares) or any similar event treated as such for income tax purposes. 

                    (g)
To the extent permitted by applicable law and the rules of any stock exchange
or market upon which the Common Stock is listed or admitted for trading, the
Company may increase the Conversion Rate by any amount for a period of at least
20 days if the Company’s Board of Directors determines that such increase would
be in the best interest of the Company, which determination shall be
conclusive. 

                    (h)
Notwithstanding the foregoing provisions of this Section 6.03, the applicable
Conversion Rate need not be adjusted: 

                              (i)
upon the issuance of any shares of Common Stock pursuant to any present or
future plan providing for the reinvestment of dividends or interest payable on
the securities of the Company and the investment of additional optional amounts
in shares of Common Stock under any plan; 

                              (ii)
upon the issuance of any shares of Common Stock or options or rights to
purchase shares of Common Stock pursuant to any present or future employee,
director or consultant benefit plan or program of or assumed by the Company or
any of its Subsidiaries; 

                              (iii)
upon the issuance of any shares of Common Stock pursuant to any option,
warrant, right, or exercisable, exchangeable or convertible security not
described in clause (ii) above and outstanding as of the Issue Date; 

                              (iv)
for a change in the par value of the Common Stock; or 

                              (v)
for accrued and unpaid Interest (including any Additional Interest). 

                    (i)
All calculations under this Section 6.03 shall be made by the Company and shall
be made to the one-ten thousandth (1/10,000) of a share. 

                    (j)
Notwithstanding the adjustments in this Section 6.03, the Company shall not
make an adjustment which would result in a decrease in the Conversion Rate
(other than as a result of a share split or combination). The Company shall not
make an adjustment which would result in the reduction of the Conversion Price
below $0.01. 

21

                    (k)
Whenever the Conversion Rate is adjusted as herein provided, the Company shall
promptly file with the Trustee and any Conversion Agent other than the Trustee
an Officers’ Certificate setting forth the Conversion Rate after such
adjustment and setting forth a brief statement of the facts requiring such
adjustment. Unless and until a Responsible Officer of the Trustee shall have
received such Officers’ Certificate, the Trustee shall not be deemed to have
knowledge of any adjustment of the Conversion Rate and may assume that the last
Conversion Rate of which it has knowledge is still in effect. Promptly after
delivery of such certificate, the Company shall prepare a notice of such
adjustment of the Conversion Rate setting forth the adjusted Conversion Rate
and the date on which such adjustment becomes effective and shall mail such
notice of such adjustment of the Conversion Rate to the Holder of each Note at
such Holder’s last address appearing on the Security Register. Failure to
deliver such notice shall not affect the legality or validity of any such
adjustment. 

                    (l)
Any case in which this Section 6.03 provides that an adjustment shall become
effective immediately after (i) a Record Date for an event, (ii) the date fixed
for the determination of a share split or combination pursuant to Section
6.03(a), or (iii) the Expiration Time for any tender or exchange offer pursuant
to Section 6.03(e), (each a “Determination Date”), the Company may elect to
defer until the occurrence of the applicable Adjustment Event (x) issuing to
the Holder of any Note converted after such Determination Date and before the
occurrence of such Adjustment Event, the additional shares of Common Stock or
other securities issuable upon such conversion by reason of the adjustment
required by such Adjustment Event over and above the Common Stock issuable upon
such conversion before giving effect to such adjustment and (y) paying to such
Holder any amount in cash in lieu of such additional shares of Common Stock or
other securities or in lieu of any fraction pursuant to Section 6.02(c). For
purposes of this Section 6.03(l), the term “Adjustment Event” shall mean: 

                              (1)
in any case referred to in clause (i) above, the occurrence of such event, 

                              (2)
in any case referred to in clause (ii) above, the date any such dividend or
distribution is paid or made, and 

                              (3)
in any case referred to in clause (iii) above, the date a sale or exchange of
Common Stock pursuant to such tender or exchange offer is consummated and
becomes irrevocable. 

                    (m)
For purposes of this Section 6.03, the number of shares of Common Stock at any
time Outstanding shall not include shares held in the treasury of the Company
but shall include shares issuable in respect of scrip certificates issued in
lieu of fractions of shares of Common Stock. The Company will not pay any
dividend or make any distribution on shares of Common Stock held in the
treasury of the Company. 

                    (n)
Whenever any provision of this Article VI requires a calculation of an average
of the Daily VWAP over a span of multiple days, the Company will make
appropriate adjustments (determined in good faith by the Company’s Board of
Directors) to account for any adjustment to the Conversion Rate that becomes
effective at any time during the period from which the average is to be
calculated. Such adjustments shall be effective as of the effective date of the
adjustment to the Conversion Rate. 

          Section
6.04 Adjustment Upon Certain Fundamental Changes. 

                    (a)
If a Holder elects to convert Notes at a time when a Fundamental Change has
occurred, then such Holder shall be entitled to receive Common Stock as
determined by the applicable Conversion Rate and the Change of Control
Make-Whole. Any conversion of Notes will be deemed to have occurred in
connection with a Fundamental Change giving rise to an adjustment only if (i)
in the case of a Fundamental Change described in clause (2) of the definition
thereof, such Notes are surrendered for conversion from and after the date that
is 35 Scheduled Trading Days prior to the anticipated Effective Date of such
Fundamental Change through and including the Business Day immediately preceding
the related Fundamental Change Purchase Date, or (ii) in the case of a
Fundamental Change described in clause (1) of the definition thereof, such
Notes are surrendered for conversion from and after the Effective Date of such
Fundamental Change through and including the Business Day immediately preceding
the related Fundamental Change Purchase Date. The Company will notify
Noteholders of any Fundamental Change described in clause (2) of the definition
thereof not later than 35 Scheduled Trading Days prior to the anticipated
Effective Date (excluding such anticipated Effective Date) of such Fundamental
Change. 

22

                    (b)
The Change of Control Make-Whole that a Holder will be entitled to receive
pursuant to Section 6.04(a) shall be equal to a percentage of $1,000 of principal
amount and determined by reference to the table attached as Schedule A hereto, based
on the date on which the Fundamental Change occurs or becomes effective (the
“Effective Date”) and the Conversion Value as a percentage of $1,000 of
principal amount of Notes being converted. If a Holder elects to convert its
Notes prior to the Effective Date of any Fundamental Change, and the
Fundamental Change does not occur, such Holder will not be entitled to an
increased Conversion Rate in connection with such conversion. 

          The
exact Conversion Value and Effective Dates may not be set forth in the table in
Schedule A, in which case: 

                              (i)
if the Conversion Value is between two Conversion Value amounts in the table or
the Effective Date is between two Effective Dates in the table, the Change of
Control Make-Whole percentage will be determined by a straight-line
interpolation between the Change of Control Make-Whole percentage set forth for
the higher and lower Conversion Value amounts and the two dates, as applicable,
based on a 365-day year. 

                              (ii)
if the Conversion Value is greater than 600.00%, no adjustment to the Change of
Control Make-Whole percentage will be made. 

                              (iii)
if the Conversion Value is less than 83.33%, no adjustment to the Change of Control
Make-Whole percentage will be made. 

          Notwithstanding
the foregoing, in no event will the Change of Control Make-Whole exceed
16.6667% of the par value of the Notes. 

          Section
6.05 Effect of Reclassification, Consolidation, Merger or Sale. 

                    (a)
If any of the following events occur: (i) any recapitalization,
reclassification or change of Common Stock (other than changes resulting from a
subdivision or combination) as a result of which the Common Stock would be converted
into, or exchanged for, stock, other securities, or other property or assets
(or any combination thereof), or (ii) any statutory share exchange,
consolidation or merger involving the Company pursuant to which the Common
Stock will be converted into cash, securities or other property (or any
combination thereof), or (iii) any sale, lease or other transfer in one
transaction or a series of related transactions of all or substantially all of
the consolidated assets of the Company and its Subsidiaries, taken as a whole,
to any Person (other than one or more of the Subsidiaries) as a result of which
the Common Stock will be converted into cash, securities or other property (or
any combination thereof) (any such event or transaction, a “Reorganization Event”),
then the Company or the successor or purchasing Person, as the case may be,
shall execute with the Trustee a supplemental indenture (which shall comply
with the Trust Indenture Act as in force at the date of execution of such
supplemental indenture) providing that at the effective time of the
Reorganization Event each Note shall be convertible into, with respect to each
$1,000 in principal amount of such Note, the kind and amount of shares of
stock, other securities or other property or assets (including cash or any
combination thereof) that a holder of a number of shares of Common Stock equal
to the Conversion Rate immediately prior to such Reorganization Event would
have owned or been entitled to receive upon such Reorganization Event (the
“Reference Property”). For purposes of the foregoing, the type and amount of
consideration that a holder of Common Stock would have been entitled to receive
in the case of any such Reorganization Event that causes the Common Stock to be
converted into the right to receive more than a single type of consideration
(determined based in part upon any form of stockholder election) will be deemed
to be the weighted average of the types and amounts of consideration received
by the holders of Common Stock that affirmatively make such an election. Such
supplemental indenture shall provide for provisions and adjustments which shall
be as nearly equivalent as may be practicable to the provisions and adjustments
provided for in this Article VI and in Article V of this Supplemental Indenture
and in the definition of Fundamental Change, as appropriate, as determined in
good faith by the Company (which determination shall be conclusive and
binding), to make such provisions apply to such other Person if different from
the original issuer of the Notes. If, in the case of any Reorganization Event,
the cash, securities or other property receivable thereupon by a holder of
Common Stock includes cash, securities or other property of a Person other than
the successor or purchasing Person, as the case may be, in such Reorganization
Event, then such supplemental indenture shall also be executed by such
successor or purchasing Person, as the case may be, and shall contain such
additional provisions to protect the interests of the 

23

Holders of the
Notes as the Board of Directors of the Company shall reasonably consider
necessary by reason of the foregoing. 

                    (b)
The Company shall cause notice of the execution of any supplemental indenture
required by this Section 6.05 to be mailed to each Holder of Notes, at its
address appearing on the Security Register, within 20 calendar days after
execution thereof. Failure to deliver such notice shall not affect the legality
or validity of such supplemental indenture. 

                    (c)
The above provisions of this Section 6.05 shall similarly apply to successive
Reorganization Events. 

                    (d)
None of the foregoing provisions shall affect the right of a Holder of Notes to
convert the Notes into shares of Common Stock as set forth in Section 6.02
prior to the effective time of such Reorganization Event. 

          Section
6.06 Responsibility of Trustee. The Trustee and any other Conversion Agent
shall not at any time be under any duty or responsibility to the Company or any
Holder of Notes to determine the Conversion Rate, or whether any facts exist
which may require any adjustment of the Conversion Rate, or with respect to the
nature or extent or calculation of any such adjustment when made, or with
respect to the method employed in making the same. The Trustee and any other
Conversion Agent shall not be accountable with respect to the validity or value
(or the kind or amount) of any shares of Common Stock, or of any securities or
property, which may at any time be issued or delivered upon the conversion of
any Note; and the Trustee and any other Conversion Agent make no
representations with respect thereto. Neither the Trustee nor any Conversion
Agent shall be responsible for any failure of the Company to issue, transfer or
deliver any cash or shares of Common Stock or stock certificates or other
securities or property upon the surrender of any Note for the purpose of
conversion or to comply with any of the duties, responsibilities or covenants
of the Company contained in this Article VI. Without limiting the generality of
the foregoing, neither the Trustee nor any Conversion Agent shall be under any
responsibility to determine whether a supplemental indenture needs to be
entered into pursuant to Section 6.05 or the correctness of any provisions
contained in any supplemental indenture entered into pursuant to Section 6.05
relating either to the kind or amount of shares of stock or securities or
property (including cash) receivable by Holders upon the conversion of their Notes
after any Reorganization Event or to any adjustment to be made with respect
thereto, but, subject to the provisions of Section 6.02, may accept as
conclusive evidence of the correctness of any such provisions, and shall be
protected in relying upon, the Officers’ Certificate (which the Company shall
be obligated to file with the Trustee prior to the execution of any such
supplemental indenture) with respect thereto. 

          Section
6.07 Notice to Holders Prior to Certain Actions. In case: 

                    (a)
the Company shall declare a dividend (or any other distribution) on the Common
Stock that would require an adjustment in the Conversion Rate pursuant to
Section 6.03; or 

                    (b)
the Company shall authorize the grant to the holders of all or substantially
all of the Common Stock of rights or warrants to subscribe for or purchase any
shares of Common Stock; or 

                    (c)
of any reclassification or reorganization of the Common Stock of the Company
(other than a subdivision or combination of its outstanding Common Stock, or a
change in par value, or from par value to no par value, or from no par value to
par value), or of any consolidation or merger to which the Company is a party
and for which approval of any stockholders of the Company is required, or of
the sale or transfer of all or substantially all of the assets of the Company;
or 

                    (d)
of the voluntary or involuntary dissolution, liquidation or winding up of the
Company; 

in addition to
any press release required under Section 6.03, the Company shall cause to be
filed with the Trustee and to be mailed to each Holder of Notes at his address
appearing on the Security Register, as promptly as possible but in any event at
least three (3) calendar days prior to the applicable date hereinafter
specified, a notice stating (x) the date on which a record is to be taken for
the purpose of such dividend, distribution or granting of rights or 

24

warrants, or,
if a record is not to be taken, the date as of which the holders of Common
Stock of record to be entitled to such dividend, distribution or rights are to
be determined, or (y) the date on which such reclassification, reorganization,
consolidation, merger, sale, transfer, dissolution, liquidation or winding up
is expected to become effective or occur, and the date as of which it is
expected that holders of Common Stock of record shall be entitled to exchange
their Common Stock for securities or other property deliverable upon such
reclassification, reorganization, consolidation, merger, sale, transfer,
dissolution, liquidation or winding up. Failure to give such notice, or any
defect therein, shall not affect the legality or validity of such dividend,
distribution, reclassification, reorganization, consolidation, merger, sale,
transfer, dissolution, liquidation or winding up. 

          Section
6.08 Stockholder Rights Plan. To the extent that the Company has a rights
plan in effect upon conversion of the Notes into Common Stock, Holders that
convert their Notes will receive, in addition to the Common Stock, the rights
under the rights plan, unless prior to any conversion, the rights have
separated from the Common Stock, in which case, and only in such case, the
Conversion Rate will be adjusted at the time of separation as if the Company
distributed to all holders of Common Stock shares of the Company’s capital
stock, evidences of indebtedness or assets as described in Section 6.03(b)
above, subject to readjustment in the event of the expiration, termination or
redemption of such rights. In lieu of any such adjustment, the Company may
amend such applicable stockholder rights agreement to provide that upon
conversion of the Notes the Holders will receive, in addition to the Common
Stock issuable upon such conversion, the rights which would have attached to
such Common Stock if the rights had not become separated from the Common Stock
under such applicable stockholder rights agreement. 

          Section
6.09 Mandatory Conversion. 

                    (a)
Subject to the requirements of Section 6.09(b) and Section 6.09(c) of this
Supplemental Indenture, at any time following the issuance of the Notes, the
Company shall have the right, at its option, may, to cause the Notes, in whole
or in part, to be automatically converted into Common Stock (a “Mandatory
Conversion”). Upon a Mandatory Conversion, a Holder shall be entitled to
receive (i) a number of shares of Common Stock based on the applicable
Conversion Rate, and (ii) the Coupon Make-Whole. The “Mandatory Conversion
Date” shall be the tenth Business Day following the date of the Mandatory
Conversion Press Release (as defined in Section 6.09(c)), excluding the date
such Mandatory Conversion Press Release is issued; provided, however, that if
the Company is required to adjust the Conversion Rate in accordance with the
requirements of Section 6.03 of this Supplemental Indenture and the Mandatory
Conversion Date would occur during the time period in which the average Daily
VWAP of the Common Stock is being calculated for purposes of such an
adjustment, then the Mandatory Conversion Date shall be the next Business Day
following the effectiveness of such adjustment. 

                    (b)
The Company may exercise a Mandatory Conversion pursuant to Section 6.09(a) of
this Supplemental Indenture only if the Daily VWAP of the Common Stock exceeds
130% of the applicable Conversion Price for at least ten Trading Days in a
period of fifteen consecutive Trading Days, including the last Scheduled
Trading Day of such fifteen-day period, ending on the Scheduled Trading Day
prior to the Company’s issuance of the Mandatory Conversion Press Release
pursuant to Section 6.09(c). 

                    (c)
In order to exercise a Mandatory Conversion, the Company must issue a press
release for publication through Dow Jones & Company, Inc., Bloomberg
Business News, BusinessWire, or PR Newswire or a substantially equivalent
financial news organization (the “Mandatory Conversion Press Release”) no later
than the third Business Day following any date on which the conditions
described in Section 6.09(b) are satisfied, announcing such a Mandatory
Conversion. The Company will also give notice by mail or by publication (with
subsequent prompt notice by mail) to the Holders (not more than four Business
Days after the date of such Mandatory Conversion Press Release) of the
Mandatory Conversion announcing the Company’s intention to convert the Notes at
their addresses shown in the Security Register maintained by the Security
Registrar (such notice, the “Notice of Mandatory Conversion”). In addition to
any information required by applicable law or regulation, the Mandatory
Conversion Press Release and the Notice of Mandatory Conversion shall each
state 

                              (i)
the Mandatory Conversion Date; 

                              (ii)
the number of shares of Common Stock to be issued upon conversion per $1,000
principal amount of Notes; 

25

                              (iii)
the aggregate amount of Notes to be converted in such Mandatory Conversion; 

                              (iv)
the amount of the Coupon Make-Whole payable to Holders per $1,000 principal
amount of Notes; 

                              (v)
the dates of the five day trading-period that will be used for purposes of calculating
the number of shares of Common Stock to be delivered in connection with the
Coupon Make-Whole pursuant to Section 6.09 of this Supplemental Indenture; and 

                              (vi)
that interest on the Notes to be converted shall cease to accrue on the
Mandatory Conversion Date. 

          Notwithstanding
the number of shares of Common Stock to be issued upon conversion as specified
in such Mandatory Conversion Press Release and Notice of Mandatory Conversion,
if following the publication or distribution of such Mandatory Conversion Press
Release or Notice of Mandatory Conversion, but prior to the Mandatory
Conversion Date, an adjustment to the applicable Conversion Rate pursuant to
Section 6.03 of this Supplemental Indenture is applicable, the Company shall
issue an additional Mandatory Conversion Press Release reflecting the number of
shares of Common Stock to be issued upon conversion per $1,000 principal amount
of Notes, taking into account such adjustment. 

                    (d)
On and after the Mandatory Conversion Date, interest shall cease to accrue on
the Notes subject to a Mandatory Conversion and all rights of Holders of such
Notes shall terminate, except for the right to receive the shares of Common
Stock issuable upon conversion of such Notes, the right to receive the Coupon
Make-Whole and the right to receive any accrued and unpaid interest accruing
prior to the Mandatory Conversion Date. The interest payment with respect to
the Notes called for a Mandatory Conversion on a date during the period between
the close of business on any Regular Record Date for the payment of interest
and the close of business on the corresponding Interest Payment Date will be
payable on such Interest Payment Date to the Holder of record of the Notes so
called on such Regular Record Date if the Notes have been converted after such
Regular Record Date and prior to such Interest Payment Date. 

                    (e)
If less than all of the Notes are to be subject to a Mandatory Conversion, the
particular Notes to be converted shall be selected by the Trustee from the
Outstanding Notes not previously called for conversion, by such method as the
Trustee shall deem fair and appropriate and which may provide for the selection
for conversion of portions of the principal amount of Notes, provided, however,
that no such partial conversion shall reduce the portion of the principal
amount of a Note not redeemed to less than the minimum denomination of $2,000.
The Trustee shall promptly notify the Company and the Security Registrar (if
other than the Trustee) in writing of the Notes selected for conversion and, in
the case of any Notes selected for partial conversion, the principal amount
thereof to be redeemed. 

                    (f)
In the event a Mandatory Conversion Date occurs between a Regular Record Date
and the related Interest Payment Date, the Company shall pay any accrued an
unpaid interest to the Holder of record on such Regular Record Date, and such
Interest Payment Date shall be excluded from the calculation of the Coupon
Make-Whole, as specified in Section 1.01 of this Supplemental Indenture. 

          Section
6.10 Settlement of Change of Control and Coupon Make-Whole. 

                    (a)
In order to satisfy its obligation to deliver the Change of Control Make-Whole
and the Coupon Make-Whole, the Company shall deliver solely Common Stock,
together with cash, if applicable, in lieu of any fractional shares of Common
Stock. 

                    (b)
The number of shares of Common Stock to be delivered in satisfaction of the
Change of Control Make-Whole or the Coupon Make-Whole shall be computed as
follows: 

	
  

 	
  

 
	
  

 	
           (i)
     the Company shall deliver to the Conversion Agent on behalf of a Holder
     entitled to receive the Change of Control Make-Whole a number of shares
     of Common Stock equal to (1)(i) the Change of 

 

26

	
  

 	
  

 
	
  

 	
 Control
 Make-Whole amount determined by reference to the table set forth in Schedule
 A to this Supplemental Indenture, multiplied by (ii) $1,000, divided by (2)
 the Stock Price; and

 
	
  

 	
  

 
	
  

 	
           (ii)
 the Company shall deliver to the Conversion Agent on behalf of a Holder entitled
 to receive the Coupon Make-Whole a number of shares of Common Stock equal to
 (1) the Coupon Make-Whole, divided by (2) the average of the Daily VWAP of
 the Common Stock over the five consecutive Trading-Day period ending on the
     Trading Day that is two Trading Days immediately prior to the Mandatory
     Conversion Date. 

 

                    (c)
The Company shall deliver any shares of Common Stock pursuant to this Section
6.10 (l) to the Conversion Agent on behalf of Holders entitled to receive the
Coupon Make-Whole on the Mandatory Conversion Date, and (2) to the Conversion
    Agent on behalf of Holder entitled to receive the Change of Control Make-Whole
    on the third Trading Day following the Conversion Date, but such Holders
    will be deemed to be the owners of the Common Stock delivered in satisfaction
    of the Change of Control Make-Whole as of the close of business on the Conversion
Date. The Company shall not issue fractional shares of Common Stock in
satisfaction of the Change of Control Make-Whole or the Coupon Make-Whole.
Instead the Company shall deliver cash, rounded to the nearest whole cent, for
such fractional shares based on the Stock Price of the Common Stock. 

ARTICLE VII

REPORTS BY THE COMPANY

          Section
7.01 Section 704 Replaced. Section 704 of the Original Indenture is hereby
superseded and replaced in its entirety by the following in respect of the
Notes established and issued under this Supplemental Indenture: 

	
  

 	
  

 
	
  

 	
 The Company
 shall file with the Trustee and the Commission, and transmit to Holders, such
 information, documents and other reports, and such summaries thereof, as may
 be required pursuant to the Trust Indenture Act at the times and in the
 manner provided pursuant to such Act; provided that any such information, documents
 or reports required to be filed with the Commission pursuant to Section 13 or
 15(d) of the Exchange Act shall be filed with the Trustee within 15 days
 after the same is so required to be filed with the Commission. Delivery of
 such reports, information and documents to the Trustee is for informational
 purposes only and the Trustee’s receipt of such shall not constitute
 constructive notice of any information contained therein or determinable from
 information contained therein, including the Company’s compliance with any of
 its covenants hereunder (as to which the Trustee is entitled to rely
 exclusively on Officers’ Certificates). 

 

ARTICLE VIII

MISCELLANEOUS

          Section
8.01 Certain Matters Relating to the Trustee. 

                    (a)
The Company hereby confirms Article Six of the Original Indenture and agrees to
protect, exonerate, defend, indemnify and save the Trustee and its officers,
directors, employees and agents (collectively, the “Indemnitees”) harmless from
and against any and all liabilities, losses, damages, fines, suits, actions,
demands, penalties, costs and expenses, including out-of-pocket, incidental
expenses, legal fees and expenses, the allocated costs and expenses of counsel
and legal staff and the costs and expenses of defending or preparing to defend
against any claim (“Losses”) that may be imposed on, incurred by, or assessed
against, the Indemnitees or any of them for following any instruction or other
direction upon which the Trustee is authorized to rely pursuant to the terms of
this Supplemental Indenture, whether acting in its capacity as Trustee,
Conversion Agent, Paying Agent, Securities Custodian or Security Registrar. In
addition to and not in limitation of the immediately preceding sentence, the
Company also covenants and agrees to indemnify and hold the Indemnitees and
each of them harmless from and against any and all Losses that may be imposed
on, incurred by, or asserted against

27

the
Indemnitees or any of them in connection with or arising out of the Trustee’s
performance, as applicable, under this Supplemental Indenture provided that
such party has not acted with negligence or engaged in willful misconduct. The
provisions of this Section 8.01 shall survive the termination of this
Supplemental Indenture and the resignation or removal of the Trustee. 

                    (b)
Except for information provided by the Trustee, in writing, specifically
concerning the Trustee, the Trustee shall not have any responsibility with
respect to any information included in any prospectus or other disclosure
material distributed with respect to the Notes, and the Trustee shall have no
responsibility for compliance with securities laws in connection with the
issuance and sale of the Notes. 

                    (c)
The Trustee, whether in its capacity as Trustee, Conversion Agent, Paying
Agent, Securities Custodian or Security Registrar, agrees to accept and act
upon instructions or directions pursuant to this Supplemental Indenture sent by
unsecured e-mail, facsimile transmission or other similar unsecured electronic
methods, provided, however, that (i) the Company, subsequent to such
transmission of written instructions, shall provide the originally executed
instructions or directions to the Trustee in a timely manner, (ii) such originally
executed instructions or directions shall be signed by an authorized officer of
the Company, and (iii) the Company shall provide to the Trustee an incumbency
certificate listing such authorized officer, which incumbency certificate shall
be amended whenever a person is to be added or deleted from the listing. If the
Company 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, such instructions shall be deemed to
constitute authorized instructions of the Company. 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 Company 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 of interception and misuse by third
parties. 

                    
No provision of this Supplemental Indenture shall require the Trustee to expend
    or risk its own funds or otherwise incur any financial liability in the performance
    of any of its duties hereunder, or in the exercise of any of its rights or
    powers, if it shall have reasonable grounds for believing that repayment
    of such funds or adequate indemnity against such risk or liability is not
reasonably assured to it. 

                    (d)
The recitals contained in this Supplemental Indenture shall be taken as the
statements of the Company, and the Trustee assumes no responsibility for the
correctness of the same. The Trustee makes no representation as to the validity
of this Supplemental Indenture. The Original Indenture, as supplemented and
amended by this Supplemental Indenture, is in all respects hereby adopted,
ratified and confirmed in respect of the Notes. 

          Section
8.02 Withholding Offset. 

                    (a)
The Company (through the Withholding Agent or otherwise) shall be entitled to
reduce or otherwise set-off against any payments made or deemed made by the
Company to Holders in respect of the Notes or the Common Stock for any amounts
the Company believes it is required to withhold by law. For the avoidance of
doubt, if the Company pays any withholding taxes on behalf of Holders as a
result of an adjustment to the Conversion Rate of the Notes, the Company may,
at its option, set-off such payments against payments of cash and Common Stock
in respect of the Notes. Any amounts withheld pursuant to this Section 8.02
shall be paid over by the Company (through the Withholding Agent or otherwise)
to the appropriate taxing authority. 

                    (b)
Prior to or upon the occurrence of any event that results in an actual or
deemed payment by the Company to Holders in respect of the Notes or the Common
Stock, the Company (through the Trustee, Paying Agent, Withholding Agent, or
otherwise) may request a Holder to furnish any appropriate documentation that
may be required in order to determine the Company’s withholding obligations
under applicable law (including, without limitation, a United States Internal
Revenue Service Form W-9, Form W-8BEN, Form W-8ECI, or any certifications
prepared by the Company or on its behalf in order to enable the Company to
attempt to comply with its potential withholding obligations under the “Foreign
Investment in Real Property Tax Act,” as appropriate). Upon the receipt of any
such documentation, or in the event no such documentation is provided, the
Company (through the Trustee, Paying Agent, Withholding Agent, or otherwise)
will withhold pursuant to Section 8.02(a) to the extent required by applicable
law. 

          Section
8.03 Calculations in Respect of Notes. Except as otherwise provided herein,
the Company shall make all calculations called for in respect of the Notes.
These calculations include, but are not limited to, determinations of the Daily
VWAP, accrued interest payable on the Notes and the Conversion Rate. The
Company

28

shall make all
calculations in good faith and, absent manifest error, such calculations shall
be final and binding on the Holders. The Company shall provide a schedule of
its calculations to each of the Trustee and the Conversion Agent, and each of
the Trustee and Conversion Agent is entitled to rely conclusively upon the
accuracy of such calculations without independent verification. The Trustee
shall forward the Company’s calculations to any Holder upon such Holder’s
request. 

          Section
8.04 Application of Supplemental Indenture. Each and every term and
condition contained in this Supplemental Indenture that modifies, amends or
supplements the terms and conditions of the Original Indenture shall apply only
to the Notes created by this Supplemental Indenture and not to any past or
future series of Securities established under the Original Indenture. Except as
specifically amended and supplemented by, or to the extent inconsistent with,
this Supplemental Indenture, the Original Indenture shall remain in full force
and effect and is hereby ratified and confirmed. 

          Section
8.05 Effective Date. This Supplemental Indenture shall be effective as of
the date first written above and upon the execution and delivery hereof by the
parties hereto. 

          Section
8.06 Multiple Originals. The parties may sign any number of copies of this
Supplemental Indenture. Each signed copy shall be an original, but all of them
together represent the same agreement. One signed copy is enough to prove this
Supplemental Indenture. 

          Section
8.07 Governing Law. This Supplemental Indenture shall be governed by and
construed in accordance with the laws of the State of New York. 

          Section
8.08 General. The Company hereby certifies that this Supplemental Indenture
conforms to the current requirements of the Trust Indenture Act. 

29

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

	
  

 	
  

 	
  

 
	
  

 	
 ANNALY CAPITAL MANAGEMENT,
 INC. 

 
	
  

 	
  

 	
  

 
	
  

 	
 By: 

 	
      /s/ Kathryn Fagan

 
	
  

 	
  

 	

 

 
	
  

 	
  

 	
 Name: Kathryn Fagan

 
	
  

 	
  

 	
 Title: Chief Financial Officer

 
	
  

 	
  

 
	
  

 	
 WELLS FARGO BANK, NATIONAL

 ASSOCIATION, as Trustee 

 
	
  

 	
  

 	
  

 
	
  

 	
 By:

 	
      /s/ Martin Reed

 
	
  

 	
  

 	

 

 
	
  

 	
  

 	
 Name: Martin Reed

 
	
  

 	
  

 	
 Title: Vice President

 

30

SCHEDULE A

          The
following table sets forth the Conversion Value and the Change of Control
Make-Whole to be received per $1,000 principal amount of Notes pursuant to
Section 6.04 of this Supplemental Indenture: 

	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
Conversion Value as a Percentage of $1,000 of Principal
Amount of Notes
 
	
  

 
	
 Effective
 Date

 	
  

 	
 83.33%

 	
  

 	
 90.00%

 	
  

 	
 100.00%

 	
  

 	
 110.00%

 	
  

 	
 120.00%

 	
  

 	
 130.00%

 	
  

 	
 140.00%

 	
  

 	
 150.00%

 	
  

 	
 175.00%

 	
  

 	
 200.00%

 	
  

 	
 250.00%

 	
  

 	
 300.00%

 	
  

 	
 400.00%

 	
  

 	
 500.00%

 	
  

 	
 600.00%

 	
  

 
	

 

 	
  

 	

 

 	
  

 	

 

 	
  

 	

 

 	
  

 	

 

 	
  

 	

 

 	
  

 	

 

 	
  

 	

 

 	
  

 	

 

 	
  

 	

 

 	
  

 	

 

 	
  

 	

 

 	
  

 	

 

 	
  

 	

 

 	
  

 	

 

 	
  

 	

 

 	
  

 
	
  

 
	
 February 12, 2010 

 	
  

 	
 16.6667

 	
  

 	
 16.6667

 	
  

 	
 16.6667

 	
  

 	
 16.6667

 	
  

 	
 16.6667

 	
  

 	
 15.5443

 	
  

 	
 14.6152

 	
  

 	
 13.8497

 	
  

 	
 12.4166

 	
  

 	
 11.3922

 	
  

 	
 9.8846

 	
  

 	
 8.6594

 	
  

 	
 6.4845

 	
  

 	
 4.5316

 	
  

 	
 2.8182

 	
  

 
	
  

 
	
 February 15, 2011 

 	
  

 	
 16.6667

 	
  

 	
 16.6667

 	
  

 	
 16.6667

 	
  

 	
 16.2569

 	
  

 	
 14.6321

 	
  

 	
 13.3700

 	
  

 	
 12.3813

 	
  

 	
 11.5971

 	
  

 	
 10.2229

 	
  

 	
 9.3248

 	
  

 	
 8.1027

 	
  

 	
 7.1370

 	
  

 	
 5.3613

 	
  

 	
 3.6198

 	
  

 	
 1.8823

 	
  

 
	
  

 
	
 February 15, 2012 

 	
  

 	
 16.6667

 	
  

 	
 16.6667

 	
  

 	
 16.2413

 	
  

 	
 13.7661

 	
  

 	
 11.9113

 	
  

 	
 10.5348

 	
  

 	
 9.5182

 	
  

 	
 8.7638

 	
  

 	
 7.5742

 	
  

 	
 6.8866

 	
  

 	
 6.0238

 	
  

 	
 5.3525

 	
  

 	
 4.0974

 	
  

 	
 2.8558

 	
  

 	
 1.7429

 	
  

 
	
  

 
	
 February 15, 2013 

 	
  

 	
 16.6667

 	
  

 	
 16.6667

 	
  

 	
 13.4153

 	
  

 	
 10.5460

 	
  

 	
 8.4997

 	
  

 	
 7.0788

 	
  

 	
 6.1148

 	
  

 	
 5.4683

 	
  

 	
 4.6103

 	
  

 	
 4.2058

 	
  

 	
 3.7340

 	
  

 	
 3.3505

 	
  

 	
 2.6059

 	
  

 	
 1.8633

 	
  

 	
 1.1177

 	
  

 
	
  

 
	
 February 15, 2014 

 	
  

 	
 16.6667

 	
  

 	
 14.1129

 	
  

 	
 9.2648

 	
  

 	
 6.0122

 	
  

 	
 3.9854

 	
  

 	
 2.7995

 	
  

 	
 2.1410

 	
  

 	
 1.7895

 	
  

 	
 1.4736

 	
  

 	
 1.3787

 	
  

 	
 1.2514

 	
  

 	
 1.1280

 	
  

 	
 0.8811

 	
  

 	
 0.6342

 	
  

 	
 0.3873

 	
  

 
	
  

 
	
 February 15, 2015 

 	
  

 	
 16.6667

 	
  

 	
 10.0000

 	
  

 	
 0.0000

 	
  

 	
 0.0000

 	
  

 	
 0.0000

 	
  

 	
 0.0000

 	
  

 	
 0.0000

 	
  

 	
 0.0000

 	
  

 	
 0.0000

 	
  

 	
 0.0000

 	
  

 	
 0.0000

 	
  

 	
 0.0000

 	
  

 	
 0.0000

 	
  

 	
 0.0000

 	
  

 	
 0.0000

 	
  

 

EXHIBIT A

UNLESS THIS
CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY
TRUST COMPANY, A NEW YORK CORPORATION (“DTC”), NEW YORK, NEW YORK, TO THE
COMPANY OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY
CERTIFICATE ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR IN SUCH
OTHER NAME AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY
PAYMENT IS MADE TO CEDE & CO. OR TO SUCH OTHER ENTITY AS IS REQUESTED
BY AN AUTHORIZED REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE OR OTHER USE
HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL INASMUCH AS THE
REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST HEREIN. 

TRANSFERS OF
THIS GLOBAL NOTE SHALL BE LIMITED TO TRANSFERS IN WHOLE, BUT NOT IN PART, TO
NOMINEES OF DTC OR TO A SUCCESSOR THEREOF OR SUCH SUCCESSOR’S NOMINEE AND
TRANSFERS OF PORTIONS OF THIS GLOBAL NOTE SHALL BE LIMITED TO TRANSFERS MADE IN
ACCORDANCE WITH THE RESTRICTIONS SET FORTH IN THE SUPPLEMENTAL INDENTURE AND
THE ORIGINAL INDENTURE. 

THIS GLOBAL
NOTE WAS ISSUED WITH ORIGINAL ISSUE DISCOUNT FOR PURPOSES OF
SECTIONS 1272, 1273 AND 1275 OF THE UNITED STATES INTERNAL REVENUE CODE OF
1986, AS AMENDED. THE ISSUE PRICE, ISSUE DATE, TOTAL AMOUNT OF ORIGINAL ISSUE
DISCOUNT AND YIELD TO MATURITY OF THIS GLOBAL NOTE MAY BE OBTAINED BY
CONTACTING THE COMPANY AT 1211 AVENUE OF THE AMERICAS, SUITE 2902, NEW YORK,
NEW YORK 10036.

This Note is a
Book-Entry Note within the meaning of the Original Indenture and every Note
authenticated and delivered upon registration of transfer of, or in exchange
for or in lieu of, this Note shall be a Book-Entry Note except in the limited
circumstances described in the Original Indenture. 

	
  

 	
  

 
	
 No. R-__

 	
  Principal Amount (US) $______________

 
	
 CUSIP # 035710AA0
ISIN #
 US035710AA05

 	
 as revised by the Schedule of Increases and

 Decreases in Global Note attached hereto

 
	
 Euroclear
 and Clearstream Common Code: #048751695

 	
  

 

4.00% Convertible Senior Notes due 2015

          Annaly
Capital Management, Inc., a corporation duly organized and existing under the
laws of Maryland (herein called the “Company”, which term includes any
successor Person under the Supplemental Indenture referred to on the reverse
hereof), for value received, hereby promises to pay to Cede & Co., or
registered assigns, the principal sum
of          (United States)
Dollars (US$          ), as
revised by the Schedule of Increases and Decreases in Global Note attached
hereto, on February 15, 2015, and to pay interest thereon from February 12,
2010, or from the most recent February 15 or August 15 (each, an “Interest
Payment Date”) to which interest has been paid, deemed paid or duly provided
for, semi-annually in arrears on February 15 and August 15 in each year,
commencing August 15, 2010, at the rate of 4.00% per annum, until the
principal hereof is converted into shares of common stock of the Company, paid,
deemed paid or made available for payment. 

          The interest
so payable, and punctually paid or duly provided for, on any Interest Payment
Date will, as provided in such Supplemental Indenture, be paid to the Person in
whose name this Note (or one or more Predecessor Securities) is registered at
the close of business on the Regular Record Date for such interest, which shall
be the February 1 or August 1 (whether or not a Business Day), as the case
may be, next preceding such Interest Payment Date. Interest will be paid on the
basis of a 360-day year consisting of twelve 30-day months. Except as otherwise
provided in the Supplemental Indenture, any such interest not so punctually
paid or duly provided for will forthwith cease to be payable to the Holder on
such Regular Record Date and may either be paid to the Person in whose name
this Note (or one or more Predecessor Securities) is registered at the close of
business on

a Special
Record Date for the payment of such Defaulted Interest to be fixed by the
Trustee, notice whereof shall be given to Holders of Notes of this series not
less than 10 days prior to such Special Record Date, or be paid at any time in
any other lawful manner not inconsistent with the requirements of any
securities exchange on which the Notes of this series may be listed, and upon
such notice as may be required by such exchange, all as more fully provided in
the Original Indenture. Payment of the principal of and any premium and
interest on this Note will be made (a) at the Corporate Trust Office of
the Trustee in 45 Broadway, 14th Floor, New York, New York 10006, Attention:
Corporate Trust Services, or such other office or agency of the Company as may
be designated by it for such purpose in the Borough of Manhattan, The City of
New York, in such coin or currency of the United States of America as at the
time of payment shall be legal tender for the payment of public and private
debts or (b) subject to any laws or regulations applicable thereto and to
the right of the Company (limited as provided in the Supplemental Indenture) to
rescind the designation of any such Paying Agent, at the main offices of the
Company in the Borough of Manhattan, The City of New York, or at such other
offices or agencies as the Company may designate, by United States dollar check
drawn on, or transfer to a United States dollar account maintained by the payee
with, a bank in The City of New York; provided, however, that at the option of
the Company payment of interest may be made by United States dollar check
mailed to the address of the Person entitled thereto as such address shall
appear in the Security Register.

          Reference
is hereby made to the further provisions of this Note set forth on the reverse
hereof, which further provisions shall for all purposes have the same effect as
if set forth at this place. 

          Unless
the certificate of authentication hereon has been executed by the Trustee
referred to on the reverse hereof, directly or through an Authenticating Agent,
by manual signature of an authorized signatory, this Note shall not be entitled
to any benefit under the Original Indenture or be valid or obligatory for any
purpose. 

A-2

          IN
WITNESS WHEREOF, the Company has caused this instrument to be duly executed. 

Dated:
February 12, 2010

	
  

 	
  

 	
  

 	
  

 
	
  

 	
 ANNALY CAPITAL MANAGEMENT,
 INC.

 
	
  

 	
  

 
	
  

 	
 By:

 	
  

 	 
	
  

 	
  

 	

 

 	 
	
  

 	
  

 	
 Name: 

 	 
	
  

 	
  

 	
 Title: 

 	 
	
  

 	
  

 	
  

 	 
	
  

 	
 By:

 	
  

 	 
	
  

 	
  

 	

 

 	 
	
  

 	
  

 	
 Name: 

 	 
	
  

 	
  

 	
 Title: 

 	 
	
  

 	
  

 	
  

 	 
	
 CERTIFICATE OF AUTHENTICATION

 
	
 This is one
 of the Notes of the series designated

 
	
 therein
 referred to in the within-mentioned 

 
	
 Supplemental
 Indenture and the Original Indenture.

 
	
  

 
	
 WELLS FARGO BANK, NATIONAL 

 
	
 ASSOCIATION, as Trustee

 

	
  

 	
  

 	
  

 
	
 By:

 	
  

 	
  

 
	
  

 	

 

 	
  

 
	
  

 	
 Authorized
 Signatory

 	
  

 

A-3

          This
Note is one of a duly authorized issue of securities of the Company (herein
called the “Notes”), issued under a Supplemental Indenture dated as of
February 12, 2010 (the “Supplemental Indenture”) to an indenture dated
as of February 12, 2010 (as it may be further amended or supplemented from time
to time in accordance with the terms thereof, the “Original Indenture”),
between the Company and Wells Fargo Bank, National Association, as Trustee
(herein called the “Trustee”, which term includes any successor trustee
under the Original Indenture), to which the Supplemental Indenture and the
Original Indenture reference is hereby made for a statement of the respective
rights, limitations of rights, obligations duties and immunities thereunder of
the Company, the Trustee and the Holders of the Notes and of the terms upon
which the Notes are, and are to be, authenticated and delivered. This Note is
one of the series designated on the face hereof, initially limited to the
aggregate principal amount of (U.S.) $500,000,000 (or $575,000,000 if the
underwriter’s over-allotment option with respect to this series is exercised in
full) issued under and pursuant to the Supplemental Indenture and Original
Indenture. 

          No
reference herein to the Supplemental Indenture and the Original Indenture, and
no provision of this Note or of the Supplemental Indenture or the Original
Indenture, shall alter or impair the obligation of the Company, which is
absolute and unconditional, to pay the principal of (and premium, if any) and
interest on this Note at the times, place(s) and rate, and in the coin or
currency, herein prescribed. In the event of any conflict or inconsistency
between the terms and provisions of this Note and the terms and provisions of
the Supplemental Indenture and the Original Indenture, the terms and provisions
of the Supplemental Indenture and the Original Indenture shall control.
Capitalized terms used but not defined herein shall have the meanings assigned
to them in the Supplemental Indenture and the Original Indenture. 

          The
Notes of this series are not subject to redemption at the election of the
Company. 

          If
any Interest Payment Date falls on a day that is not a Business Day, such
Interest Payment Date shall be postponed to the next succeeding Business Day
and no interest on such payment will accrue for the period from the Interest Payment
Date to such next succeeding Business Day. If the Stated Maturity date would
fall on a day that is not a Business Day, the required payment of interest, if
any, and principal (and Additional Interest, if any), will be made on the next
succeeding Business Day and no interest on such payment will accrue for the
period from and after the Stated Maturity date to such next succeeding Business
Day. If a Fundamental Change Purchase Date would fall on a day that is not a
Business Day, the Company will purchase the Notes tendered for purchase on the
next succeeding Business Day and no interest or Additional Interest on such
Notes will accrue for the period from and after the earlier Fundamental Change
Purchase Date to such next succeeding Business Day. The Company will pay the
Fundamental Change Purchase Price promptly following the later of (i) such
next succeeding Business Day or (ii) the time of book entry transfer or
the delivery of the Note. 

          The
Holder of this Note after 5:00 p.m., New York City time, on a Regular Record
Date shall be entitled to receive interest (including any Additional Interest),
on this Note on the corresponding Interest Payment Date. Holders of this Note
at 5:00 p.m., New York City time, on a Regular Record Date will receive payment
of interest (including any Additional Interest) payable on the corresponding
Interest Payment Date notwithstanding the conversion of this Note at any time
after 5:00 p.m., New York City time on such Regular Record Date. If this Note
is surrendered for conversion during the period after 5:00 p.m., New York City
time, on any Regular Record Date to 9:00 a.m., New York City time, on the
corresponding Interest Payment Date it must be accompanied by payment of an
amount equal to the interest (including any Additional Interest) that the
Holder is to receive on this Note on such Interest Payment Date. 

          Notwithstanding
the foregoing, no such payment of interest (including any Additional Interest)
need be made by the converting Holder (i) for conversions following the
Regular Record Date immediately preceding the Stated Maturity, (ii) if the
Company has provided a specified a Mandatory Conversion Date in a Notice of
Mandatory Conversion, (iii) if the Company has specified a Fundamental Change Purchase
Date that is after a Regular Record Date and on or prior to the corresponding
Interest Payment Date, or (iv) to the extent of any overdue interest
(including any overdue Additional Interest) existing at the time of conversion
of this Note. Except where this Note surrendered for conversion must be
accompanied by payment as described above, no interest or Additional Interest
on converted portions of this Note will be payable by the Company on any
Interest Payment Date subsequent to the Conversion Date or the Mandatory
Conversion Date, as applicable, and delivery of the shares of Common Stock,
together with any cash payment for any fractional shares, upon conversion will
be deemed to satisfy 

A-4

the Company’s
obligation to pay the principal amount of this Note and accrued and unpaid
interest and Additional Interest, if any, to, but not including, the related
Conversion Date or Mandatory Conversion Date, as applicable. 

          Whenever
in this Note there is a reference, in any context, to the payment of the
principal of, premium, if any, or interest on, or in respect of, this Note,
such mention shall be deemed to include mention of the payment of Additional
Interest as provided for in the Supplemental Indenture to the extent that, in
such context, the Additional Interest is, was or would be payable in respect of
this Note and express mention of the payment of Additional Interest (if
applicable) in any provisions of this Note shall not be construed as excluding
Additional Interest in those provisions of this Note where such express mention
is not made. 

          If
a Fundamental Change occurs at any time, subject to the provisions set forth in
the Supplemental Indenture, the Holder of this Note shall have the right, at
such Holder’s option, to require the Company to purchase all of such Note, or
any portion of the principal amount thereof, that is equal to $1,000 or an
integral multiple thereof, at the Fundamental Change Purchase Price specified
in the Supplemental Indenture plus accrued and unpaid interest, including
Additional Interest, if any, to but excluding the Fundamental Change Purchase
Date. Any Notes purchased by the Company shall be paid for in Common Stock.
Article V of the Supplemental Indenture sets forth the procedures, obligations,
conditions and other terms of such repurchase option upon the occurrence of a
Fundamental Change. In the event the Holder converts this Note in connection
with a Fundamental Change, such Holder shall be entitled to receive the Change
of Control Make-Whole in accordance with the provisions of Section 6.04 of the
Supplemental Indenture.

          Subject
to the conditions and procedures set forth in Article VI of the Supplemental
Indenture, and during the periods specified in the Supplemental Indenture, the
Holder may convert this Note prior to the close of business on the second
Scheduled Trading Day immediately preceding the Stated Maturity (excluding such
Maturity Date), into shares of Common Stock at the applicable Conversion Rate. 

          Subject
to the conditions and procedures set forth in Article VI of the Supplemental
Indenture, and during the periods specified in the Supplemental Indenture, the
Company may, at its option, cause this Note, in whole or in part, to be
automatically converted into shares of Common Stock at the applicable
Conversion Rate. In connection with such a Mandatory Conversion, the Holder
will be entitled to receive the Coupon Make-Whole.

          The
initial Conversion Rate is, in respect of each $1,000 principal amount of this
Note, 46.6070 shares of Common Stock, subject to adjustments as set forth in
the Supplemental Indenture. 

          A
Holder may convert a portion of this Note only if the principal amount of such
portion is $1,000 or an integral multiple thereof. No payment or adjustment
shall be made for dividends on the Common Stock except as provided in the
Supplemental Indenture. 

          This
Note is in registered form without coupons in denominations of principal amount
of $2,000 and integral multiples of $1,000 in excess thereof. The Holder may
transfer or exchange this Note in accordance with the Supplemental Indenture.
The Security Registrar may require the Holder, among other things, to furnish
appropriate endorsements or transfer documents. No service charge shall be made
for any registration of transfer or exchange of this Note, but the Company may
require payment of a sum sufficient to cover any transfer tax or similar
governmental charge payable in connection with any such transfer or exchange.
Neither the Company nor the Security Registrar shall be required to exchange or
register a transfer of any Notes surrendered for conversion or, if a portion of
this Note is surrendered for conversion, the portion thereof surrendered for
conversion. 

          Prior
to due presentment of this Note for registration of transfer, the Company, the
Trustee and any agent of the Company or the Trustee may treat the Person in
whose name this Note is registered as the owner hereof for all purposes,
whether or not this Note is overdue, and neither the Company, the Trustee nor
any such agent shall be affected by notice to the contrary. 

          The
registered Holder of this Note may be treated as the absolute owner of such
Note for all purposes whatsoever. 

A-5

          The
Supplemental Indenture and the Original Indenture permit, with certain
exceptions as therein provided, the amendment thereof and the modification of
the rights and obligations of the Company and the rights of the Noteholders at
any time by the Company and the Trustee with the consent of the holders of 50%
in principal amount of Notes at the time Outstanding. The Supplemental
Indenture and the Original Indenture also contain provisions permitting the
holders of specified percentages in principal amount of the Notes Outstanding,
on behalf of all Noteholders, to waive compliance by the Company with certain
provisions of the Supplemental Indenture and the Original Indenture and certain
past defaults under the Supplemental Indenture and the Original Indenture and
their consequences. Any such consent or waiver by the Holder of this Note shall
be conclusive and binding upon such Holder and upon all future Holders of this
Note and of any Note issued upon the registration of transfer hereof or in
exchange herefor or in lieu hereof, whether or not notation of such consent or
waiver is made upon this Note. 

          If
an Event of Default with respect to this Note shall occur and be continuing,
the principal of this Note may be declared due and payable in the manner and
with the effect provided in the Supplemental Indenture and the Original
Indenture. The provisions relating to discharge set forth in Section 401 of the
Original Indenture and defeasance and covenant defeasance set forth in Section
402 of the Original Indenture are not applicable to this Note.

          To
the extent elected by the Company, the sole remedy for an Event of Default
relating to the failure by the Company to comply with the obligation to furnish
reports required under Section 704 of the Original Indenture as further
supplemented by the Supplemental Indenture and for any failure to comply with §314(a)(1)
of the Trust Indenture Act, will for the first 120 days after the occurrence
of such an Event of Default, consist exclusively of the right for the Holder
to receive Additional Interest on this Note equal to 0.25% per annum of
the principal amount of this Note (“Additional
Interest”). If the Company so elects, such Additional Interest will
be payable in the same manner and on the same dates as the stated interest payable
on this Note. The Additional Interest will accrue from and including the date
on which such Event of Default first occurs to but not including the 120th day
thereafter (or such earlier date on which such Event of Default shall have been
cured or waived). On such 120th day after such Event of Default (if the Event
of Default relating to such obligation is not cured or waived prior to such
120th day), such Additional Interest will cease to accrue and this Note will
be subject to acceleration as provided in the Original Indenture. In the event
the Company does not elect to pay the Additional Interest upon such Event of
Default in accordance with the Supplemental Indenture, this Note will be
subject to acceleration as provided in the Original Indenture. 

          As
set forth in, and subject to, the provisions of the Supplemental Indenture and
the Original Indenture, no Noteholder will have any right to institute any
proceeding with respect to the Supplemental Indenture or the Original Indenture
or for any remedy thereunder, unless such Holder shall have previously given to
the Trustee written notice of a continuing Event of Default with respect to
this series, the Holders of not less than 25% in principal amount of the
Outstanding Notes of this series shall have made written request, and offered
indemnity reasonably satisfactory, to the Trustee to institute such proceeding
as trustee, and the Trustee shall not have received from the Holders of a
majority in principal amount of the Outstanding Notes a direction inconsistent
with such request and shall have failed to institute such proceeding within 60
days; provided, however, that such limitations do not apply to a suit
instituted by the Holder for the enforcement of payment of the principal of and
any premium or interest on this Note on or after the respective due dates
expressed herein. The Supplemental Indenture provides that the principal and
any accrued and unpaid interest, including Additional Interest, if any, of this
Note shall become immediately due and payable without declaration or other act
on the part of the Trustee or the Holder if an Event of Default specified in
clauses (15), (16) or (17) of Section 501 occurs. 

          This
Note shall be governed by, and construed in accordance with, the laws of the
State of New York.

          The
Company will furnish to the Holder upon written request and without charge a
copy of the Supplemental Indenture and the Original Indenture which has in it
the text of this Note. Requests may be made to:

Annaly Capital Management, Inc.

1211 Avenue of the Americas, Suite 2902

New York, New York 10036

A-6

ASSIGNMENT
FORM

To assign this Note, fill in the form below:

I or we assign and transfer this Note to

(Print or type assignee’s name, address and
zip code)

(Insert assignee’s soc. sec. or tax I.D. No.)

and irrevocably
appoint          agent to
transfer this Note on the books of the Company. The agent may substitute

another to act for him.

	
  

 
	
 Date:
 ______________ Your Signature:
 ____________________________________________________________

 
	
 Sign exactly
 as your name appears on the other side of this Note. 

 
	
  

 
	
 Signature Guarantee:
 _____________________________________________________________________________________________

 
	
 (Signature must be guaranteed)

 
	
 Signature
 must be guaranteed by a participant in a recognized signature guarantee
 medallion program or other signature guarantor acceptable to the Trustee.

 

A-7

SCHEDULE OF INCREASES OR DECREASES IN GLOBAL
NOTE

The following
increases or decreases in this Global Note have been made: 

	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 Amount of

 decrease in

 Principal

 Amount

 of this Global

 Note

 	
  

 	
 Amount of

 increase in

 Principal

 Amount of this

 Global Note

 	
  

 	
 Principal

 Amount of this

 Global Note

 following such

 decrease or

 increase

 	
  

 	
 Signature of

 authorized

 signatory of

 Trustee

 	
  

 	
 Date

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	

 

 	
  

 	

 

 	
  

 	

 

 	
  

 	

 

 	
  

 	

 

 

A-8

FORM OF CONVERSION NOTICE

To: Annaly
Capital Management, Inc. 

          The
undersigned registered Holder of this Note hereby exercises the option to
convert this Note, or portion hereof (which is $1,000 principal amount or an
integral multiple thereof) designated below, for shares of Common Stock of
Annaly Capital Management, Inc., in accordance with the terms of the
Supplemental Indenture and the Original Indenture referred to in this Note, and
directs that the shares issuable and deliverable upon such conversion, cash in
lieu of fractional shares and any portion of this Note representing any
unconverted principal amount hereof, be issued and delivered to the registered
Holder hereof unless a different name has been indicated below. If shares or
any portion of this Note not converted are to be issued in the name of a Person
other than the undersigned, the undersigned shall pay all transfer taxes
payable with respect thereto. Any amount required to be paid by the undersigned
on account of interest accompanies this Note. The undersigned acknowledges that
the conversion of the specified Notes is subject to the requirements
established by the Company in the Supplemental Indenture and the Original
Indenture, as applicable, as well as the procedures of any Depositary, each as
in effect from time to time. 

          This
notice shall be deemed to be an irrevocable exercise of the option to convert
this Note. 

Dated: 

	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	

 

 
	
  

 	
  

 	
 Signature(s)

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	

 

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Signature(s) must be guaranteed by a participant
 in a recognized signature guarantee medallion
 program or other signature guarantor acceptable to the Trustee.

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	

 

 
	
  

 	
  

 	
 Signature
 Guarantee

 
	
  

 	
  

 	
  

 
	
 Fill in for
 registration of shares if to be delivered, and Notes if to be issued other
 than to and in the name of registered holder:

 	
  

 	
  

 
	
  

 	
  

 	
 Principal
 amount to be converted (if less than all):

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
 $

 	
  

 
	

 

 	
  

 	
  

 	

 

 
	
 (Name)

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 
	
 (Street
 Address)

 	
  

 	
  

 
	
  

 	
  

 	
  

 
	

 

 	
  

 	

 

 
	
 (City state
 and zip code)

 	
  

 	
 Social
 Security or Other Taxpayer Number

 
	
  

 	
  

 	
  

 
	
 Please print
 name and address:

 	
  

 	
  

 
	
  

 	
  

 	
  

 
	

 

 	
  

 	
  

 
	
  

 	
  

 	
  

 
	

 

 	
  

 	
  

 

A-9

FORM OF FUNDAMENTAL CHANGE PURCHASE NOTICE

To: Annaly
Capital Management, Inc. 

          The
undersigned registered holder of this Note hereby acknowledges receipt of a
notice from Annaly Capital Management, Inc. (the “Company”) as to the
occurrence of a Fundamental Change with respect to the Company and requests and
instructs the Company to repurchase this Note, or the portion hereof (which is
$1,000 or an integral multiple thereof) designated below, in accordance with
the terms of the Supplemental Indenture and the Original Indenture referred to
in this Note and directs that the check of the Company in payment for this Note
or the portion thereof and any portion of this Note representing any
unrepurchased principal amount hereof, be issued and delivered to the
registered holder hereof unless a different name has been indicated below. If
any portion of this Note not repurchased is to be issued in the name of a
Person other than the undersigned, the undersigned shall pay all transfer taxes
payable with respect thereto. 

Dated: 

	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	

 

 
	
  

 	
  

 	
 Signature(s)

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Signature must be guaranteed by a participant
 in a recognized signature guarantee medallion
 program or other signature guarantor acceptable to the Trustee.

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	

 

 
	
  

 	
  

 	
 Signature
 Guarantee

 
	
  

 	
  

 	
  

 
	
 Fill in for
 registration of shares if to be delivered, and any portion of this Note if to
 be issued other than to and in the name of registered holder:

 	
  

 	
  

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Principal
 amount to be purchased (if less than all):

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
 $

 	
  

 
	

 

 	
  

 	
  

 	

 

 
	
 (Name)

 	
  

 	
  

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (if
 certificated, state the certificate number for each Note to be delivered for
 purchase) 

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	

 

 
	
  

 	
  

 	
  

 
	

 

 	
  

 	

 

 
	
 (Street
 Address)

 	
  

 	
  

 
	
  

 	
  

 	
  

 
	

 

 	
  

 	

 

 
	
 (City state
 and zip code)

 	
  

 	
 Social
 Security or Other Taxpayer Number

 
	
  

 	
  

 	
  

 
	
 Please print
 name and address:

 	
  

 	
  

 
	
  

 	
  

 	
  

 
	

 

 	
  

 	
  

 
	
  

 	
  

 	
  

 
	

 

 	
  

 	
  

 

A-10

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