Document:

exhibit 4.34

EXHIBIT
4.34

EXECUTION
COPY

 

 

NAVISTAR
INTERNATIONAL CORPORATION

 

$400,000,000

 

61⁄4%
Senior Notes due 2012

 

 

EXCHANGE
AND REGISTRATION RIGHTS AGREEMENT

 

March 2,
2005

 

BANC OF
AMERICA SECURITIES LLC

CITIGROUP
GLOBAL MARKETS INC.

J.P.
MORGAN SECURITIES INC.

CREDIT
SUISSE FIRST BOSTON LLC

SCOTIA
CAPITAL (USA) INC.

BNY
CAPITAL MARKETS, INC.

RBC
CAPITAL MARKETS CORPORATION

c/o Banc
of America Securities LLC

9 West
57th Street,
6th
Floor

New York,
New York 10019

Ladies
and Gentlemen:

 

Navistar
International Corporation, a Delaware corporation (the “Company”),
proposes to issue and sell to Banc of America Securities LLC (“Banc
of America”),
Citigroup Global Markets Inc., J.P. Morgan Securities Inc., Credit Suisse First
Boston LLC, Scotia Capital (USA) Inc., BNY Capital Markets, Inc. and RBC Capital
Markets Corporation (collectively, the “Initial
Purchasers”), upon
the terms and subject to the conditions set forth in a purchase agreement dated
February 23, 2005 (the “Purchase
Agreement”),
$400,000,000

aggregate
principal amount of its 61⁄4% Senior Notes due 2012 (the “Securities”) to be
guaranteed on a senior basis by International Truck and Engine Corporation, as
subsidiary guarantor (the “Guarantor”).
Capitalized terms used but not defined herein shall have the meanings given to
such terms in the Purchase Agreement.

 

As an
inducement to the Initial Purchasers to enter into the Purchase Agreement and in
satisfaction of a condition to the obligations of the Initial Purchasers
thereunder, the Company and the Guarantor agree with the Initial Purchasers, for
the benefit of the holders (including the Initial Purchasers) of the Securities
and the Exchange Securities (as defined herein) (collectively, the “Holders”), as
follows:

 

E-7

EXHIBIT
4.34 (continued)

1.
Registered
Exchange Offer. The
Company and the Guarantor shall (i) prepare and, not later than 90 days
following the date of original issuance of the Securities (the “Issue
Date”), file
with the Commission a registration statement (the “Exchange
Offer Registration Statement”) on an
appropriate form under the Securities Act with respect to a proposed offer to
the Holders of the Securities (the “Registered
Exchange Offer”) to
issue and deliver to such Holders, in exchange for the Securities, a like
aggregate principal amount of debt securities of the Company (the “Exchange
Securities”) that
are identical in all material respects to the Securities, except for the
transfer restrictions relating to the Securities, (ii) use their reasonable best
efforts to cause the Exchange Offer Registration Statement to become effective
under the Securities Act and the Registered Exchange Offer to be consummated no
later than 365 days after the Issue Date and (iii) keep the Exchange Offer
Registration Statement effective for not less than 20 business days (or longer,
if required by applicable law) after the date on which notice of the Registered
Exchange Offer is mailed to the Holders (such period being called the
“Exchange
Offer Registration Period”). The
Exchange Securities will be issued under the Indenture or an indenture (the
“Exchange
Securities Indenture”)
between the Company, the Guarantor and the Trustee or such other bank or trust
company that is reasonably satisfactory to the Initial Purchasers, as trustee
(the “Exchange
Securities Trustee”), such
indenture to be identical in all material respects to the Indenture, except for
the transfer restrictions relating to the Securities (as described
above).

 

Upon the
effectiveness of the Exchange Offer Registration Statement, the Company and the
Guarantor shall promptly commence the Registered Exchange Offer, it being the
objective of such Registered Exchange Offer to enable each Holder electing to
exchange Securities for Exchange Securities (assuming that such Holder (a) is
not an affiliate of the Company or an Exchanging Dealer (as defined herein) not
complying with the requirements of the next sentence, (b) acquires the Exchange
Securities in the ordinary course of such Holder’s business and (c) has no
arrangements or understandings with any person to participate in the
distribution of the Exchange Securities) and to trade such Exchange Securities
from and after their receipt without any limitations or restrictions under the
Securities Act and without material restrictions under the securities laws of
the several states of the United States. The Company, the Guarantor, the Initial
Purchasers and each Exchanging Dealer acknowledge that, pursuant to current
interpretations by the Commission’s staff of Section 5 of the Securities Act,
each Holder that is a broker-dealer electing to exchange Securities, acquired
for its own account as a result of market-making activities or other trading
activities, for Exchange Securities (an “Exchanging
Dealer”), is
required to deliver a prospectus containing substantially the information set
forth in Annex A hereto on the cover, in Annex B hereto in the “Exchange Offer
Procedures” section and the “Purpose of the Exchange Offer” section and in Annex
C hereto in the “Plan of Distribution” section of such prospectus in connection
with a sale of any such Exchange Securities received by such Exchanging Dealer
pursuant to the Registered Exchange Offer.

 

In
connection with the Registered Exchange Offer, the Company shall:

 

(a) mail to
each Holder a copy of the prospectus forming part of the Exchange Offer
Registration Statement, together with an appropriate letter of transmittal and
related documents;

 

E-8

EXHIBIT
4.34 (continued)

(b) keep the
Registered Exchange Offer open for not less than 20 business days (or longer, if
required by applicable law) after the date on which notice of the Registered
Exchange Offer is mailed to the Holders;

 

(c) utilize
the services of a depositary for the Registered Exchange Offer with an address
in the Borough of Manhattan, The City of New York;

 

(d) permit
Holders to withdraw tendered Securities at any time prior to the close of
business, New York City time, on the last business day on which the Registered
Exchange Offer shall remain open; and

 

(e) otherwise
comply in all material respects with all laws that are applicable to the
Registered Exchange Offer.

 

As soon
as reasonably practicable after the close of the Registered Exchange Offer, the
Company shall:

 

(a) accept
for exchange all Securities tendered and not validly withdrawn pursuant to the
Registered Exchange Offer;

 

(b) deliver
to the Trustee for cancellation all Securities so accepted for exchange;
and

 

(c) cause the
Trustee or the Exchange Securities Trustee, as the case may be, promptly to
authenticate and deliver to each Holder Exchange Securities equal in principal
amount to the Securities of such Holder so accepted for exchange.

 

The
Company shall, upon receiving written notice by any person subject to the
prospectus delivery requirements of the Securities Act within 20 business days
after the completion of the Exchange Offer, use its reasonable best efforts to
keep the Exchange Offer Registration Statement effective and to amend and
supplement the prospectus contained therein in order to permit such prospectus
to be used by all persons subject to the prospectus delivery requirements of the
Securities Act for such period of time as such persons must comply with such
requirements in order to resell the Exchange Securities; provided that (i)
in the case where such prospectus and any amendment or supplement thereto must
be delivered by an Exchanging Dealer, such period shall be the lesser of 180
days and the date on which all Exchanging Dealers have sold all Exchange
Securities held by them and (ii) the Company shall make such prospectus and any
amendment or supplement thereto available to any broker-dealer who so requests
for use in connection with any resale of any Exchange Securities for a period of
not less than 90 days after the consummation of the Registered Exchange
Offer.

 

The
Indenture or the Exchange Securities Indenture, as the case may be, shall
provide that the Securities, the Exchange Securities shall vote and consent
together on all matters as one class and that none of the Securities or the
Exchange Securities will have the right to vote or consent as a separate class
on any matter.

 

Interest
on each Exchange Security issued pursuant to the Registered Exchange Offer will
accrue from the last interest payment date on which interest was paid on the
Securities surrendered in exchange therefor or, if no interest has been paid on
the Securities, from the Issue Date.

 

E-9

EXHIBIT
4.34 (continued)

Each
Holder participating in the Registered Exchange Offer shall be required to
represent to the Company that at the time of the consummation of the Registered
Exchange Offer (i) any Exchange Securities received by such Holder will be
acquired in the ordinary course of business, (ii) such Holder will have no
arrangements or understanding with any person to participate in the distribution
of the Securities or the Exchange Securities within the meaning of the
Securities Act and (iii) such Holder is not an affiliate of the Company or, if
it is such an affiliate, such Holder will comply with the registration and
prospectus delivery requirements of the Securities Act to the extent
applicable.

 

Notwithstanding
any other provisions hereof, the Company and the Guarantor will ensure that (i)
any Exchange Offer Registration Statement and any amendment thereto and any
prospectus forming part thereof and any supplement thereto complies in all
material respects with the Securities Act and the rules and regulations of the
Commission thereunder, (ii) any Exchange Offer Registration Statement and any
amendment thereto does not, when it becomes effective, contain an untrue
statement of a material fact or omit to state a material fact required to be
stated therein or necessary to make the statements therein not misleading and
(iii) any prospectus forming part of any Exchange Offer Registration Statement,
and any supplement to such prospectus, does not, as of the consummation of the
Registered Exchange Offer, include an untrue statement of a material fact or
omit to state a material fact necessary in order to make the statements therein,
in the light of the circumstances under which they were made, not
misleading.

 

2.
Shelf
Registration. If
(i) because
of any change in law or applicable interpretations thereof by the Commission’s
staff the Company and the Guarantor are not permitted to effect the Registered
Exchange Offer as contemplated by Section 1 hereof, or (ii) for
any other reason the Registered Exchange Offer is not consummated within 365
days after the Issue Date provided that it is not otherwise scheduled to be
consummated within 20 business days thereof, or (iii) any
Initial Purchaser so requests with respect to Securities not eligible to be
exchanged for Exchange Securities in the Registered Exchange Offer and held by
it following the consummation of the Registered Exchange Offer, or (iv) any
applicable law or interpretations do not permit any Holder to participate in the
Registered Exchange Offer, or (v) any
Holder that participates in the Registered Exchange Offer does not receive
freely transferable Exchange Securities in exchange for tendered Securities,
then the following provisions shall apply:

 

(a) The
Company and the Guarantor shall use their reasonable best efforts to file as
promptly as reasonably practicable (but in no event more than the later of (i)
45 days after so required or requested pursuant to this Section 2 or (ii) 90
days following the Issue Date) with the Commission (the “Shelf
Filing Date”), and
thereafter shall use its reasonable best efforts to cause to be declared
effective, a shelf registration statement on an appropriate form under the
Securities Act relating to the offer and sale of the Transfer Restricted
Securities by the Holders thereof from time to time in accordance with the
methods of distribution set forth in such registration statement (hereafter, a
“Shelf
Registration Statement” and,
together with any Exchange Offer Registration Statement, a “Registration
Statement”).

 

E-10

EXHIBIT
4.34 (continued)

(b) The
Company and the Guarantor shall use their reasonable best efforts to keep the
Shelf Registration Statement continuously effective in order to permit the
prospectus forming part thereof to be used by Holders of Transfer Restricted
Securities (as defined below) for a period ending on the earlier of (i) two
years from the Issue Date or such shorter period that will terminate when all
the Transfer Restricted Securities covered by the Shelf Registration Statement
have been sold pursuant thereto and (ii) the date on which the Securities become
eligible for resale without volume restrictions pursuant to Rule 144 under the
Securities Act (in any such case, such period being called the “Shelf
Registration Period”). The Company and the Guarantor shall be deemed not to have
used its reasonable best efforts to keep the Shelf Registration Statement
effective during the requisite period if the Company or the Guarantor
voluntarily takes any action that would result in Holders of Transfer Restricted
Securities covered thereby not being able to offer and sell such Transfer
Restricted Securities during that period, unless such action is required by
applicable law.

 

(c)
Notwithstanding any other provisions hereof, the Company and the Guarantor will
ensure that (i) any Shelf Registration Statement and any amendment thereto and
any prospectus forming part thereof and any supplement thereto complies in all
material respects with the Securities Act and the rules and regulations of the
Commission thereunder, (ii) any Shelf Registration Statement and any amendment
thereto (in either case, other than with respect to information included therein
in reliance upon or in conformity with written information furnished to the
Company by or on behalf of any Holder specifically for use therein (the
“Holders’
Information”)) does
not, when it becomes effective, contain an untrue statement of a material fact
or omit to state a material fact required to be stated therein or necessary to
make the statements therein not misleading and (iii) any prospectus forming part
of any Shelf Registration Statement, and any supplement to such prospectus (in
either case, other than with respect to Holders’ Information), does not include
an untrue statement of a material fact or omit to state a material fact
necessary in order to make the statements therein, in the light of the
circumstances under which they were made, not misleading.

 

3.
Additional
Interest.
(a) The
parties hereto agree that the Holders of Transfer Restricted Securities will
suffer damages if the Company and the Guarantor fail to fulfill their respective
obligations under Section 1 or Section 2, as applicable, and that it would not
be feasible to ascertain the extent of such damages. Accordingly, in the event
that either (i) the
Registered Exchange Offer is not completed or the Shelf Registration Statement,
if required hereby, is not declared effective on or prior to 365 days after the
Issue Date, or (ii) the
Shelf Registration Statement is filed and declared effective within 365 days
after the Issue Date but shall thereafter cease to be effective (at any time
that the Company and the Guarantor are obligated to maintain the effectiveness
thereof) without being succeeded within 30 days by an additional Registration
Statement filed and declared effective (each such event referred to in clauses
(i) and (ii), a “Registration
Default”), the
Company and the Guarantor will be obligated to pay, as liquidated damages for
such Registration Default, additional cash interest to each Holder of Transfer
Restricted Securities, during the period of one or more such Registration
Defaults, in an amount equal to 0.50% per annum of the principal amount of
Transfer Restricted Securities held by such Holder until (i) the Registered
Exchange Offer is consummated or (ii) the Shelf Registration Statement is
declared effective or again becomes effective, as the case may be. 

 

E-11

EXHIBIT
4.34 (continued)

Following
the cure of all Registration Defaults, the accrual of additional interest will
cease. As used herein, the term “Transfer
Restricted Securities” means
(i) each Security until the date on which such Security has been exchanged for a
freely transferable Exchange Security in the Registered Exchange Offer, (ii)
each Security until the date on which it has been effectively registered under
the Securities Act and disposed of in accordance with the Shelf Registration
Statement or (iii) each Security until the date on which it is distributed to
the public pursuant to Rule 144 under the Securities Act or is freely saleable
pursuant to Rule 144(k) under the Securities Act. Notwithstanding anything to
the contrary in this Section 3(a), neither the Company nor the Guarantor shall
be required to pay additional interest to a Holder of Transfer Restricted
Securities if such Holder failed to comply with its obligations to make the
representations set forth in the second to last paragraph of Section 1 or failed
to provide the information required to be provided by it, if any, pursuant to
Section 4(n).

 

(b) The
Company shall notify the Trustee and the Paying Agent under the Indenture as
soon as practicable, but no later than two business days, after the happening of
each and every Registration Default. The Company or the Guarantor, as the case
may be, shall pay the additional interest due on the Transfer Restricted
Securities by depositing with the Paying Agent (which may not be the Company for
these purposes), in trust, for the benefit of the Holders thereof, prior to
10:00 a.m., New York City time, on the next interest payment date specified by
the Indenture and the Securities, sums sufficient to pay the additional interest
then due. The additional interest due shall be payable on each interest payment
date specified by the Indenture and the Securities to the record holder entitled
to receive the interest payment to be made on such date. Each obligation to pay
additional interest shall be deemed to accrue from and including the date of the
applicable Registration Default.

 

(c) The
parties hereto agree that the additional interest provided for in this Section 3
constitutes a reasonable estimate of and is intended to constitute the sole
damages that will be suffered by Holders of Transfer Restricted Securities by
reason of the failure of (i) the Shelf Registration Statement to be declared
effective and to remain effective and (ii) the Registered Exchange Offer to be
consummated, in each case to the extent required by this Agreement.

 

4.
Registration
Procedures. In
connection with any Registration Statement, the following provisions shall
apply:

 

(a) The
Company shall (i) furnish to each Initial Purchaser, prior to the filing thereof
with the Commission, a copy of the Registration Statement and each amendment
thereof and each supplement, if any, to the prospectus included therein and
shall use its reasonable best efforts to reflect in each such document, when so
filed with the Commission, such comments as any Initial Purchaser may reasonably
propose; (ii) include in a form consistent with applicable rules and regulations
of the Commission the information set forth in Annex A hereto on the cover, in
Annex B hereto in the “Exchange Offer Procedures” section and the “Purpose of
the Exchange Offer” section and in Annex C hereto in the “Plan of Distribution”
section of the prospectus forming a part of the Exchange Offer Registration
Statement, and include the information set forth in Annex D hereto in the Letter
of Transmittal delivered pursuant to the Registered Exchange Offer; and (iii) if
requested by any Initial Purchaser, include the information required by Items
507 or 508 of Regulation S-K, as applicable, in the prospectus forming a part of
the Exchange Offer Registration Statement

 

E-12

EXHIBIT
4.34 (continued)

(b) The
Company shall advise each Initial Purchaser, and, with respect to clauses (ii) -
(v) hereof, each Exchanging Dealer known to the Company and the Holders of
Transfer Restricted Securities included within the coverage of any Shelf
Registration Statement and, if requested by any such person, confirm such advice
in writing (which advice pursuant to clauses (ii)-(v) hereof shall be
accompanied by an instruction to suspend the use of the prospectus until the
requisite changes have been made):

 

(i) when any
Registration Statement and any amendment thereto has been filed with the
Commission and when such Registration Statement or any post-effective amendment
thereto has become effective;

 

(ii) of any
request by the Commission for amendments or supplements to any Registration
Statement that has been declared effective or the prospectus included therein or
for additional information;

 

(iii) of the
issuance by the Commission of any stop order suspending the effectiveness of any
Registration Statement or the initiation of any proceedings for that purpose;

 

(iv) of the
receipt by the Company of any notification with respect to the suspension of the
qualification of the Securities or the Exchange Securities for sale in any
jurisdiction or the initiation or threatening of any proceeding for such
purpose; and

 

(v) of the
happening of any event that requires the making of any changes in any
Registration Statement or the prospectus included therein in order that the
statements therein are not misleading and do not omit to state a material fact
required to be stated therein or necessary to make the statements therein not
misleading.

 

(c) The
Company and the Guarantor will make every reasonable effort to obtain the
withdrawal at the earliest possible time of any order suspending the
effectiveness of any Registration Statement.

 

(d) The
Company will furnish to each Holder of Transfer Restricted Securities included
within the coverage of any Shelf Registration Statement, without charge, at
least one conformed copy of such Shelf Registration Statement and any
post-effective amendment thereto, including financial statements and schedules
and, if any such Holder so requests in writing, all exhibits thereto not
otherwise accessible through the SEC’s website (including those, if any,
incorporated by reference).

 

(e) The
Company will, during the Shelf Registration Period, promptly deliver to each
Holder of Transfer Restricted Securities included within the coverage of any
Shelf Registration Statement, without charge, as many copies of the prospectus
(including each preliminary prospectus) included in such Shelf Registration
Statement and any amendment or supplement thereto as such Holder may reasonably
request; and the Company consents to the use of such prospectus or any amendment
or supplement thereto by each of the selling Holders of Transfer Restricted
Securities in connection with the offer and sale of the Transfer Restricted
Securities covered by such prospectus or any amendment or supplement
thereto.

 

E-13

EXHIBIT
4.34 (continued)

(f) The
Company will furnish to each Initial Purchaser and each Exchanging Dealer known
to the Company, and to any other Holder who so requests, without charge, at
least one conformed copy of the Exchange Offer Registration Statement and any
post-effective amendment thereto, including financial statements and schedules
and, if any Initial Purchaser or Exchanging Dealer or any such Holder so
requests in writing, all exhibits thereto not otherwise accessible through the
SEC’s website (including those, if any, incorporated by reference).

 

(g) The
Company will, during the Exchange Offer Registration Period or the Shelf
Registration Period, as applicable, promptly deliver to each Initial Purchaser,
each Exchanging Dealer and such other persons who have notified the Company that
are required to deliver a prospectus following the Registered Exchange Offer,
without charge, as many copies of the final prospectus included in the Exchange
Offer Registration Statement or the Shelf Registration Statement and any
amendment or supplement thereto as such Initial Purchaser, Exchanging Dealer or
other persons may reasonably request; and the Company and the Guarantor consent
to the use of such prospectus or any amendment or supplement thereto by any such
Initial Purchaser, Exchanging Dealer or other persons, as applicable, as
aforesaid.

 

(h) Prior
to the effective date of any Registration Statement, the Company and the
Guarantor will use their reasonable best efforts to register or qualify, or
cooperate with the Holders of Securities or Exchange Securities included therein
and their respective counsel in connection with the registration or
qualification of, such Securities or Exchange Securities for offer and sale
under the securities or blue sky laws of such jurisdictions as any such Holder
reasonably requests in writing and do any and all other acts or things necessary
or advisable to enable the offer and sale in such jurisdictions of the
Securities or Exchange Securities covered by such Registration Statement;
provided that the
Company and the Guarantor will not be required to qualify generally to do
business in any jurisdiction where it is not then so qualified or to take any
action which would subject it to general service of process or to taxation in
any such jurisdiction where it is not then so subject.

 

(i) The
Company and the Guarantor will cooperate with the Holders of Securities or
Exchange Securities to facilitate the timely preparation and delivery of
certificates representing Securities or Exchange Securities to be sold pursuant
to any Registration Statement free of any restrictive legends and in such
denominations and registered in such names as the Holders thereof may request in
writing prior to sales of Securities or Exchange Securities pursuant to such
Registration Statement.

 

(j) If
any event contemplated by Section 4(b)(ii) through (v) occurs during the period
for which the Company and the Guarantor are required to maintain an effective
Registration Statement, the Company will promptly prepare and file with the
Commission a post-effective amendment to the Registration Statement or a
supplement to the related prospectus or file any other required document so
that, as thereafter delivered to purchasers of the Securities or Exchange
Securities from a Holder, the prospectus will not include an untrue statement of
a material fact or omit to state a material fact necessary in order to make the
statements therein, in the light of the circumstances under which they were
made, not misleading.

 

E-14

EXHIBIT
4.34 (continued)

(k) Not
later than the effective date of the applicable Registration Statement, the
Company will provide a CUSIP number for the Securities and the Exchange
Securities, as the case may be, and provide the applicable trustee with printed
certificates for the Securities or the Exchange Securities, as the case may be,
in a form eligible for deposit with The Depository Trust Company.

 

(l) The
Company and the Guarantor will comply in all material respects with applicable
rules and regulations of the Commission and will make generally available to its
security holders as soon as practicable after the effective date of the
applicable Registration Statement an earning statement satisfying the provisions
of Section 11(a) of the Securities Act; provided that in
no event shall such earning statement be delivered later than 45 days after the
end of a 12-month period (or 90 days, if such period is a fiscal year) beginning
with the first month of the Company’s first fiscal quarter commencing after the
effective date of the applicable Registration Statement, which statement shall
cover such 12-month period.

 

(m) The
Company and the Guarantor will cause the Indenture or the Exchange Securities
Indenture, as the case may be, to be qualified under the Trust Indenture Act as
required by applicable law in a timely manner.

 

(n) The
Company may require each Holder of Transfer Restricted Securities to be
registered pursuant to any Shelf Registration Statement to furnish to the
Company such information concerning the Holder and the distribution of such
Transfer Restricted Securities as the Company may from time to time reasonably
require for inclusion in such Shelf Registration Statement, and the Company may
exclude from such registration the Transfer Restricted Securities of any Holder
that fails to furnish such information within a reasonable time after receiving
such request.

 

(o) In
the case of a Shelf Registration Statement, each Holder of Transfer Restricted
Securities to be registered pursuant thereto agrees by acquisition of such
Transfer Restricted Securities that, upon receipt of any notice from the Company
pursuant to Section 4(b)(ii) through (v), such Holder will discontinue
disposition of such Transfer Restricted Securities until such Holder’s receipt
of copies of the supplemental or amended prospectus contemplated by Section 4(j)
or until advised in writing (the “Advice”) by the
Company that the use of the applicable prospectus may be resumed. If the Company
shall give any notice under Section 4(b)(ii) through (v) during the period that
the Company is required to maintain an effective Registration Statement (the
“Effectiveness
Period”), such
Effectiveness Period shall be extended by the number of days during such period
from and including the date of the giving of such notice to and including the
date when each seller of Transfer Restricted Securities covered by such
Registration Statement shall have received (x) the copies of the supplemental or
amended prospectus contemplated by Section 4(j) (if an amended or supplemental
prospectus is required) or (y) the Advice (if no amended or supplemental
prospectus is required).

 

(p) In
the case of a Shelf Registration Statement, the Company shall and the Guarantor
enter into such customary agreements (including, if requested, an underwriting
agreement in customary form) and take all such other action, if any, as Holders
of a majority in aggregate principal amount of the Securities and Exchange
Securities being sold or the managing underwriters (if any) shall reasonably
request in order to facilitate any disposition of Securities or Exchange
Securities pursuant to such Shelf Registration Statement.

 

E-15

EXHIBIT
4.34 (continued)

(q) In
the case of a Shelf Registration Statement, the Company shall (i) make
reasonably available for inspection by a representative of, and Special Counsel
(as defined below) acting for, Holders of a majority in aggregate principal
amount of the Securities and Exchange Securities being sold and any underwriter
participating in any disposition of Securities or Exchange Securities pursuant
to such Shelf Registration Statement, all relevant financial and other records,
pertinent corporate documents and properties of the Company and its subsidiaries
and (ii) use its reasonable best efforts to have its officers, directors,
employees, accountants and counsel supply all relevant information reasonably
requested by such representative, Special Counsel or any such underwriter (an
“Inspector”) in
connection with such Shelf Registration Statement; provided that, in
each case, such person or persons agree to treat any non-public information as
confidential.

 

(r) In
the case of a Shelf Registration Statement, the Company shall, if requested by
Holders of a majority in aggregate principal amount of the Securities and
Exchange Securities being sold, their Special Counsel or the managing
underwriters (if any) in connection with such Shelf Registration Statement, use
its reasonable best efforts to cause (i) its counsel to deliver an opinion
relating to the Shelf Registration Statement and the Securities or Exchange
Securities, as applicable, in customary form, (ii) its officers to execute and
deliver all customary documents and certificates requested by Holders of a
majority in aggregate principal amount of the Securities and Exchange Securities
being sold, their Special Counsel or the managing underwriters (if any) and
(iii) its independent public accountants to provide a comfort letter in
customary form, subject to receipt of appropriate documentation as contemplated,
and only if permitted, by Statement of Auditing Standards No. 72.

 

5.
Registration
Expenses. The
Company and the Guarantor will bear all expenses incurred in connection with the
performance of its obligations under Sections 1, 2, 3 and 4, and the Company
will reimburse the Initial Purchasers and the Holders for the reasonable fees
and disbursements of one firm of attorneys (in addition to any local counsel)
chosen by the Holders of a majority in aggregate principal amount of the
Securities and the Exchange Securities to be sold pursuant to each Registration
Statement (the “Special
Counsel”) acting
for the Initial Purchasers or Holders in connection therewith.

 

6.
Indemnification. (a) In
the event of a Shelf Registration Statement or in connection with any prospectus
delivery pursuant to an Exchange Offer Registration Statement by an Initial
Purchaser or Exchanging Dealer, as applicable, the Company and the Guarantor
shall jointly and severally indemnify and hold harmless each Holder (including,
without limitation, any such Initial Purchaser or Exchanging Dealer), its
affiliates, their respective officers, directors, employees, representatives and
agents, and each person, if any, who controls such Holder within the meaning of
the Securities Act or the Exchange Act (collectively referred to for purposes of
this Section 6 and Section 7 as a Holder) from and against any loss, claim,
damage or liability, joint or several, or any action in respect thereof
(including, without limitation, any loss, claim, damage, liability or action
relating to purchases and sales of Securities or Exchange Securities), to which
that Holder may become subject, whether commenced or threatened, under the
Securities Act, the Exchange Act, any other federal or state statutory law or
regulation, at common law or otherwise, insofar as such loss, claim, damage,
liability or action arises out of, or is based upon, (i) any untrue
statement or alleged untrue statement of a material 

 

E-16

EXHIBIT
4.34 (continued)

fact
contained in any such Registration Statement or any prospectus forming part
thereof or in any amendment or supplement thereto or (ii) the omission or
alleged omission to state therein a material fact required to be stated therein
or necessary in order to make the statements therein, in the light of the
circumstances under which they were made, not misleading, and shall reimburse
each Holder promptly upon demand for any legal or other expenses reasonably
incurred by that Holder in connection with investigating or defending or
preparing to defend against or appearing as a third party witness in connection
with any such loss, claim, damage, liability or action as such expenses are
incurred; provided,
however, that
the Company and the Guarantor shall not be liable in any such case to the extent
that any such loss, claim, damage, liability or action arises out of, or is
based upon, an untrue statement or alleged untrue statement in or omission or
alleged omission from any of such documents in reliance upon and in conformity
with any Holders’ Information; and provided,
further, that
with respect to any such untrue statement in or omission from any related
preliminary prospectus, the indemnity agreement contained in this Section 6(a)
shall not inure to the benefit of any Holder from whom the person asserting any
such loss, claim, damage, liability or action received Securities or Exchange
Securities to the extent that such loss, claim, damage, liability or action of
or with respect to such Holder results from (i) the fact that both (A) a copy of
the final prospectus was not sent or given to such person at or prior to the
written confirmation of the sale of such Securities or Exchange Securities to
such person and (B) the untrue statement in or omission from the related
preliminary prospectus was corrected in the final prospectus unless, in either
case, such failure to deliver the final prospectus was a result of noncompliance
by the Company with Section 4(d), 4(e), 4(f) or 4(g), or (ii) the
prospectus was used by such person after receiving notice from the Company
pursuant to Section 4(o) hereof.

 

(b) In the
event of a Shelf Registration Statement, each Holder shall indemnify and hold
harmless the Company, the Guarantor, their affiliates, their respective
officers, directors, employees, representatives and agents, and each person, if
any, who controls the Company or the Guarantor within the meaning of the
Securities Act or the Exchange Act (collectively referred to for purposes of
this Section 6(b) and Section 7 as the Company), from and against any loss,
claim, damage or liability, joint or several, or any action in respect thereof,
to which the Company may become subject, whether commenced or threatened, under
the Securities Act, the Exchange Act, any other federal or state statutory law
or regulation, at common law or otherwise, insofar as such loss, claim, damage,
liability or action arises out of, or is based upon, (i) any untrue statement or
alleged untrue statement of a material fact contained in any such Registration
Statement or any prospectus forming part thereof or in any amendment or
supplement thereto or (ii) the omission or alleged omission to state therein a
material fact required to be stated therein or necessary in order to make the
statements therein, in the light of the circumstances under which they were
made, not misleading, but in each case only to the extent that the untrue
statement or alleged untrue statement or omission or alleged omission was made
in reliance upon and in conformity with any Holders’ Information furnished to
the Company by such Holder, and shall reimburse the Company for any legal or
other expenses reasonably incurred by the Company in connection with
investigating or defending or preparing to defend against or appearing as a
third party witness in connection with any such loss, claim, damage, liability
or action as such expenses are incurred; provided,
however, that no
such Holder shall be liable for any indemnity claims hereunder in excess of the
amount of net proceeds received by such Holder from the sale of Securities or
Exchange Securities pursuant to such Shelf Registration Statement.

 

E-17

EXHIBIT
4.34 (continued)

(c) Promptly
after receipt by an indemnified party under this Section 6 of notice of any
claim or the commencement of any action, the indemnified party shall, if a claim
in respect thereof is to be made against the indemnifying party pursuant to
Section 6(a) or 6(b), notify the indemnifying party in writing of the claim
or the commencement of that action; provided,
however, that
the failure to notify the indemnifying party shall not relieve it from any
liability which it may have under this Section 6 except to the extent that it
has been materially prejudiced (through the forfeiture of substantive rights or
defenses) by such failure; and provided,
further, that
the failure to notify the indemnifying party shall not relieve it from any
liability which it may have to an indemnified party otherwise than under this
Section 6. If any such claim or action shall be brought against an indemnified
party, and it shall notify the indemnifying party thereof, the indemnifying
party shall be entitled to participate therein and, to the extent that it
wishes, jointly with any other similarly notified indemnifying party, to assume
the defense thereof with counsel reasonably satisfactory to the indemnified
party. After notice from the indemnifying party to the indemnified party of its
election to assume the defense of such claim or action, the indemnifying party
shall not be liable to the indemnified party under this Section 6 for any legal
or other expenses subsequently incurred by the indemnified party in connection
with the defense thereof other than the reasonable costs of investigation;
provided,
however, that an
indemnified party shall have the right to employ its own counsel in any such
action, but the fees, expenses and other charges of such counsel for the
indemnified party will be at the expense of such indemnified party unless (1)
the employment of counsel by the indemnified party has been authorized in
writing by the indemnifying party, (2) the indemnified party has reasonably
concluded (based upon advice of counsel to the indemnified party) that there may
be legal defenses available to it or other indemnified parties that are
different from or in addition to those available to the indemnifying party, (3)
a conflict or potential conflict exists (based upon advice of counsel to the
indemnified party) between the indemnified party and the indemnifying party (in
which case the indemnifying party will not have the right to direct the defense
of such action on behalf of the indemnified party) or (4) the indemnifying party
has not in fact employed counsel reasonably satisfactory to the indemnified
party to assume the defense of such action within a reasonable time after
receiving notice of the commencement of the action, in each of which cases the
reasonable fees, disbursements and other charges of counsel will be at the
expense of the indemnifying party or parties. It is understood that the
indemnifying party or parties shall not, in connection with any proceeding or
related proceedings in the same jurisdiction, be liable for the reasonable fees,
disbursements and other charges of more than one separate firm of attorneys (in
addition to any local counsel) at any one time for all such indemnified party or
parties. No indemnifying party shall be liable for any settlement of any such
action effected without its written consent (which consent shall not be
unreasonably withheld or delayed), but if settled with its written consent or if
there be a final judgment for the plaintiff in any such action, the indemnifying
party agrees to indemnify and hold harmless any indemnified party from and
against any loss or liability by reason of such settlement or judgment. No
indemnifying party shall, without the prior written consent of the indemnified
party (which consent shall not be unreasonably withheld or delayed), effect any
settlement of any pending or threatened proceeding in respect of which any
indemnified party is or could have been a party and indemnity could have been
sought hereunder by such indemnified party, unless such settlement includes an
unconditional release of such indemnified party from all liability on claims
that are the subject matter of such proceeding.

 

E-18

EXHIBIT
4.34 (continued)

7.
Contribution. If the
indemnification provided for in Section 6 is unavailable or insufficient to hold
harmless an indemnified party under Section 6(a) or 6(b), then each indemnifying
party shall, in lieu of indemnifying such indemnified party, contribute to the
amount paid or payable by such indemnified party as a result of such loss,
claim, damage or liability, or action in respect thereof, (i) in such
proportion as shall be appropriate to reflect the relative benefits received by
the Company and the Guarantor from the offering and sale of the Securities, on
the one hand, and a Holder with respect to the sale by such Holder of Securities
or Exchange Securities, on the other hand, or (ii) if the allocation
provided by clause (i) above is not permitted by applicable law, in such
proportion as is appropriate to reflect not only the relative benefits referred
to in clause (i) above but also the relative fault of the Company and the
Guarantor, on the one hand, and such Holder, on the other hand, with respect to
the statements or omissions that resulted in such loss, claim, damage or
liability, or action in respect thereof, as well as any other relevant equitable
considerations. The relative benefits received by the Company and the Guarantor,
on the one hand, and a Holder, on the other hand, with respect to such offering
and such sale shall be deemed to be in the same proportion as the total net
proceeds from the offering of the Securities (before deducting expenses)
received by or on behalf of the Company as set forth on the cover of the
Offering Memorandum, on the one hand, bear to the total proceeds received by
such Holder with respect to its sale of Securities or Exchange Securities, on
the other hand. The relative fault shall be determined by reference to, among
other things, whether the untrue or alleged untrue statement of a material fact
or the omission or alleged omission to state a material fact relates to the
Company and the Guarantor or information supplied by the Company and the
Guarantor, on the one hand, or to any Holders’ Information supplied by such
Holder, on the other hand, the intent of the parties and their relative
knowledge, access to information and opportunity to correct or prevent such
untrue statement or omission. The parties hereto agree that it would not be just
and equitable if contributions pursuant to this Section 7 were to be determined
by pro rata allocation or by any other method of allocation that does not take
into account the equitable considerations referred to herein. The amount paid or
payable by an indemnified party as a result of the loss, claim, damage or
liability, or action in respect thereof, referred to above in this Section 7
shall be deemed to include, for purposes of this Section 7, any legal or other
expenses reasonably incurred by such indemnified party in connection with
investigating or defending or preparing to defend any such action or claim.
Notwithstanding the provisions of this Section 7, an indemnifying party that is
a Holder of Securities or Exchange Securities shall not be required to
contribute any amount in excess of the amount by which the total price at which
the Securities or Exchange Securities sold by such indemnifying party to any
purchaser exceeds the amount of any damages which such indemnifying party has
otherwise paid or become liable to pay by reason of any untrue or alleged untrue
statement or omission or alleged omission. No person guilty of fraudulent
misrepresentation (within the meaning of Section 11(f) of the Securities Act)
shall be entitled to contribution from any person who was not guilty of such
fraudulent misrepresentation.

 

E-19

EXHIBIT
4.34 (continued)

8.
Rules
144 and 144A. The
Company shall use its reasonable best efforts to file the reports required to be
filed by them under the Securities Act and the Exchange Act in a timely manner
and, if at any time the Company is not required to file such reports, it will,
upon the written request of any Holder of Transfer Restricted Securities, make
publicly available other information so long as necessary to permit sales of
such Holder’s securities pursuant to Rules 144 and 144A. The Company and the
Guarantor covenant that they will take such further action as any Holder of
Transfer Restricted Securities may reasonably request, all to the extent
required from time to time to enable such Holder to sell Transfer Restricted
Securities without registration under the Securities Act within the limitation
of the exemptions provided by Rules 144 and 144A (including, without limitation,
the requirements of Rule 144A(d)(4)). Upon the written request of any Holder of
Transfer Restricted Securities, the Company and the Guarantor shall deliver to
such Holder a written statement as to whether it has complied with such
requirements. Notwithstanding the foregoing, nothing in this Section 8 shall be
deemed to require the Company to register any of its securities pursuant to the
Exchange Act.

 

9.
Underwritten
Registrations. The
Holders of a majority in aggregate principal amount of the Securities and
Exchange Securities eligible to be included in a Shelf Registration Statement
may on one occasion request an underwritten offering. If any of the Transfer
Restricted Securities covered by any Shelf Registration Statement are to be sold
in an underwritten offering, the investment banker or investment bankers and
manager or managers that will administer the offering will be selected by the
Holders of a majority in aggregate principal amount of such Transfer Restricted
Securities included in such offering, subject to the consent of the Company
(which shall not be unreasonably withheld or delayed), and such Holders shall be
responsible for all underwriting commissions and discounts in connection
therewith.

 

No person
may participate in any underwritten registration hereunder unless such person
(i) agrees to sell such person’s Transfer Restricted Securities on the basis
reasonably provided in any underwriting arrangements approved by the persons
entitled hereunder to approve such arrangements and (ii) completes and executes
all questionnaires, powers of attorney, indemnities, underwriting agreements and
other documents reasonably required under the terms of such underwriting
arrangements.

 

10.
Miscellaneous. (a)
Amendments
and Waivers. The
provisions of this Agreement may not be amended, modified or supplemented, and
waivers or consents to departures from the provisions hereof may not be given,
unless the Company has obtained the written consent of Holders of a majority in
aggregate principal amount of the Securities and the Exchange Securities, taken
as a single class. Notwithstanding the foregoing, a waiver or consent to depart
from the provisions hereof with respect to a matter that relates exclusively to
the rights of Holders whose Securities or Exchange Securities are being sold
pursuant to a Registration Statement and that does not directly or indirectly
affect the rights of other Holders may be given by Holders of a majority in
aggregate principal amount of the Securities and the Exchange Securities being
sold by such Holders pursuant to such Registration Statement.

 

E-20

EXHIBIT
4.34 (continued)

(b) Notices. All
notices and other communications provided for or permitted hereunder shall be
made in writing by hand-delivery, first-class mail, telecopier or air courier
guaranteeing next-day delivery:

 

(1) if to a
Holder, at the most current address given by such Holder to the Company in
accordance with the provisions of this Section 10(b), which address initially
is, with respect to each Holder, the address of such Holder maintained by the
Registrar under the Indenture, with a copy in like manner to Banc of America
Securities LLC and Citigroup Global Markets Inc.;

 

(2) if to an
Initial Purchaser, initially at its address set forth in the Purchase Agreement;
and

 

(3) if to the
Company or the Guarantor, initially as provided in the Purchase
Agreement.

 

All such
notices and communications shall be deemed to have been duly given: when
delivered by hand, if personally delivered; one business day after being
delivered to a next-day air courier; five business days after being deposited in
the mail; and when receipt is acknowledged by the recipient’s telecopier
machine, if sent by telecopier.

 

(c) Successors
And Assigns. This
Agreement shall be binding upon the Company and the Guarantor and their
respective successors and assigns.

 

(d) Counterparts. This
Agreement may be executed in any number of counterparts (which may be delivered
in original form or by telecopier) and by the parties hereto in separate
counterparts, each of which when so executed shall be deemed to be an original
and all of which taken together shall constitute one and the same
agreement.

 

(e) Definition
of Terms. For
purposes of this Agreement, (a) the term “business day” means any day on which
the New York Stock Exchange, Inc. is open for trading, (b) the term “subsidiary”
has the meaning set forth in Rule 405 under the Securities Act and (c)
except where otherwise expressly provided, the term “affiliate” has the meaning
set forth in Rule 405 under the Securities Act. 

 

(f) Headings. The
headings in this Agreement are for convenience of reference only and shall not
limit or otherwise affect the meaning hereof.

 

(g) Governing
Law. This
Agreement shall be governed by and construed in accordance with the laws of the
State of New York.

 

E-21

EXHIBIT
4.34 (continued)

(h) Remedies. In the
event of a breach by the Company or the Guarantor or by any Holder of any of
their obligations under this Agreement, each Holder or the Company or the
Guarantor, as the case may be, in addition to being entitled to exercise all
rights granted by law, including recovery of damages (other than the recovery of
damages for a breach by the Company or the Guarantor of its obligations under
Sections 1 or 2 hereof for which additional interest have been paid pursuant to
Section 3 hereof), will be entitled to specific performance of its rights under
this Agreement. The Company, the Guarantor and each Holder agree that monetary
damages would not be adequate compensation for any loss incurred by reason of a
breach by it of any of the provisions of this Agreement and hereby further agree
that, in the event of any action for specific performance in respect of such
breach, it shall waive the defense that a remedy at law would be
adequate.

 

(i) No
Inconsistent Agreements. The
Company and the Guarantor represents, warrants and agrees that (i) it has not
entered into, shall not, on or after the date of this Agreement, enter into any
agreement that is inconsistent with the rights granted to the Holders in this
Agreement or otherwise conflicts with the provisions hereof, (ii) it has not
previously entered into any agreement which remains in effect granting any
registration rights with respect to any of its debt securities to any person and
(iii) without limiting the generality of the foregoing, without the written
consent of the Holders of a majority in aggregate principal amount of the then
outstanding Transfer Restricted Securities, it shall not grant to any person the
right to request the Company to register any debt securities of the Company
under the Securities Act unless the rights so granted are not in conflict or
inconsistent with the provisions of this Agreement.

 

(j) No
Piggyback on Registrations. Neither
the Company nor any of their security holders (other than the Holders of
Transfer Restricted Securities in such capacity) shall have the right to include
any securities of the Company in any Shelf Registration or Registered Exchange
Offer other than Transfer Restricted Securities.

 

(k) Severability. The
remedies provided herein are cumulative and not exclusive of any remedies
provided by law. If any term, provision, covenant or restriction of this
Agreement is held by a court of competent jurisdiction to be invalid, illegal,
void or unenforceable, the remainder of the terms, provisions, covenants and
restrictions set forth herein shall remain in full force and effect and shall in
no way be affected, impaired or invalidated, and the parties hereto shall use
their reasonable best efforts to find and employ an alternative means to achieve
the same or substantially the same result as that contemplated by such term,
provision, covenant or restriction. It is hereby stipulated and declared to be
the intention of the parties that they would have executed the remaining terms,
provisions, covenants and restrictions without including any of such that may be
hereafter declared invalid, illegal, void or unenforceable.

 

[Signatures
to follow on the next page.]

 

E-22

 

EXHIBIT
4.34 (continued)

Please
confirm that the foregoing correctly sets forth the agreement among the Company
and the Guarantor and the Initial Purchasers.

 

Very
truly yours,

NAVISTAR
INTERNATIONAL CORPORATION

By:
/s/
Terry M. Endsley_________________

Name:
Terry M. Endsley

Title:
Vice President and Treasurer

INTERNATIONAL
TRUCK AND ENGINE CORPORATION

By:
/s/
Terry M. Endsley_________________

Name:
Terry M. Endsley

Title:
Vice President and Treasurer

 

Accepted:

 

BANC OF
AMERICA SECURITIES LLC

CITIGROUP
GLOBAL MARKETS INC.

J.P.
MORGAN SECURITIES INC.

CREDIT
SUISSE FIRST BOSTON LLC

SCOTIA
CAPITAL (USA) INC.

BNY
CAPITAL MARKETS, INC.

RBC
CAPITAL MARKETS CORPORATION

 

 

By: BANC OF
AMERICA SECURITIES LLC

On behalf
of the Initial Purchasers

By:/s/
Stephan Jaeger    

Authorized
Signatory

E-23

EXHIBIT
4.34 (continued)

ANNEX
A

 

 

Each
broker-dealer that receives Exchange Securities for its own account pursuant to
the Registered Exchange Offer must acknowledge that it will deliver a prospectus
in connection with any resale of such Exchange Securities. The Letter of
Transmittal states that by so acknowledging and by delivering a prospectus, a
broker-dealer will not be deemed to admit that it is an “underwriter” within the
meaning of the Securities Act. This Prospectus, as it may be amended or
supplemented from time to time, may be used by a broker-dealer in connection
with resales of Exchange Securities received in exchange for Securities where
such Securities were acquired by such broker-dealer as a result of market-making
activities or other trading activities. The Company has agreed that, for a
period of 180 days after the Expiration Date (as defined herein), it will make
this Prospectus available to any broker-dealer for use in connection with any
such resale. See “Plan of Distribution.”

 

E-24

 

EXHIBIT
4.34 (continued)

ANNEX
B

 

 

Each
broker-dealer that receives Exchange Securities for its own account in exchange
for Securities, where such Securities were acquired by such broker-dealer as a
result of market-making activities or other trading activities, must acknowledge
that it will deliver a prospectus in connection with any resale of such Exchange
Securities. See “Plan of Distribution.”

 

E-25

 

EXHIBIT
4.34 (continued)

ANNEX
C

 

 

PLAN OF
DISTRIBUTION

 

 

Each
broker-dealer that receives Exchange Securities for its own account pursuant to
the Registered Exchange Offer must acknowledge that it will deliver a prospectus
in connection with any resale of such Exchange Securities. This Prospectus, as
it may be amended or supplemented from time to time, may be used by a
broker-dealer in connection with resales of Exchange Securities received in
exchange for Securities where such Securities were acquired as a result of
market-making activities or other trading activities. The Company has agreed
that, for a period of 180 days after the Expiration Date, it will make this
prospectus, as amended or supplemented, available to any broker-dealer for use
in connection with any such resale.

 

The
Company will not receive any proceeds from any sale of Exchange Securities by
broker-dealers. Exchange Securities received by broker-dealers for their own
account pursuant to the Registered Exchange Offer may be sold from time to time
in one or more transactions in the over-the-counter market, in negotiated
transactions, through the writing of options on the Exchange Securities or a
combination of such methods of resale, at market prices prevailing at the time
of resale, at prices related to such prevailing market prices or at negotiated
prices. Any such resale may be made directly to purchasers or to or through
brokers or dealers who may receive compensation in the form of commissions or
concessions from any such broker-dealer or the purchasers of any such Exchange
Securities. Any broker-dealer that resells Exchange Securities that were
received by it for its own account pursuant to the Registered Exchange Offer and
any broker or dealer that participates in a distribution of such Exchange
Securities may be deemed to be an “underwriter” within the meaning of the
Securities Act and any profit on any such resale of Exchange Securities and any
commission or concessions received by any such persons may be deemed to be
underwriting compensation under the Securities Act. The Letter of Transmittal
states that, by acknowledging that it will deliver and by delivering a
prospectus, a broker-dealer will not be deemed to admit that it is an
“underwriter” within the meaning of the Securities Act.

 

For a
period of 180 days after the Expiration Date the Company will promptly send
additional copies of this Prospectus and any amendment or supplement to this
Prospectus to any broker-dealer that requests such documents in the Letter of
Transmittal. The Company has agreed to pay all expenses incident to the
Registered Exchange Offer (including the expenses of one counsel for the Holders
of the Securities) other than commissions or concessions of any broker-dealers
and will indemnify the Holders of the Securities (including any broker-dealers)
against certain liabilities, including liabilities under the Securities
Act.

 

E-26

 

EXHIBIT
4.34 (continued)

ANNEX
D

 

□ CHECK
HERE IF YOU ARE A BROKER-DEALER AND WISH TO RECEIVE
10 ADDITIONAL COPIES OF THE PROSPECTUS AND 10 COPIES OF ANY AMENDMENTS OR
SUPPLEMENTS THERETO.

 

Name:
__________________________________________

 

Address:
__________________________________________

 

__________________________________________

 

 

If the
undersigned is not a broker-dealer, the undersigned represents that it is not
engaged in, and does not intend to engage in, a distribution of Exchange
Securities. If the undersigned is a broker-dealer that will receive Exchange
Securities for its own account in exchange for Securities that were acquired as
a result of market-making activities or other trading activities, it
acknowledges that it will deliver a prospectus in connection with any resale of
such Exchange Securities; however, by so acknowledging and by delivering a
prospectus, the undersigned will not be deemed to admit that it is an
“underwriter” within the meaning of the Securities Act.

 

E-27exhibit 4.35

EXHIBIT
4.35

 

 

NAVISTAR
INTERNATIONAL CORPORATION,

 

as
Issuer

 

INTERNATIONAL
TRUCK AND ENGINE CORPORATION,

 

as
Guarantor,

 

AND

 

THE BANK
OF NEW YORK TRUST COMPANY, N.A.

 

as
Trustee

 

______________________________________

 

INDENTURE

 

Dated as
of March 2, 2005

 

______________________________________

 

$400,000,000
aggregate principal amount of

 

61⁄4 %
Senior Notes due 2012

 

 

 

 

 

 

 

 

 

 

E-28

 

EXHIBIT
4.35 (continued)

TABLE OF
CONTENTS

	 	
      Page

		
      

    
	
      ARTICLE
      I DEFINITIONS AND INCORPORATION BY REFERENCE
	
      1

	 	
      Section
      1.1.
	 	
      Definitions
	
      1

	 	
      Section
      1.2.
	 	
      Other
      Definitions
	
      32

	 	
      Section
      1.3.
	 	
      Incorporation
      by Reference of Trust Indenture Act
	
      33

	 	
      Section
      1.4.
	 	
      Rules
      of Construction
	
      33

	 	 	 	 	 
	
      ARTICLE
      II THE SECURITIES
	
      34

	 	
      Section
      2.1.
	 	
      Form,
      Dating and Terms
	
      34

	 	
      Section
      2.2.
	 	
      Execution
      and Authentication
	
      35

	 	
      Section
      2.3.
	 	
      Registrar
      and Paying Agent
	
      36

	 	
      Section
      2.4.
	 	
      Paying
      Agent To Hold Money in Trust
	
      37

	 	
      Section
      2.5.
	 	
      Securityholder
      Lists
	
      37

	 	
      Section
      2.6.
	 	
      Transfer
      and Exchange
	
      37

	 	
      Section
      2.7.
	 	
      [Reserved]
	
      49

	 	
      Section
      2.8.
	 	
      [Reserved]
	
      49

	 	
      Section
      2.9.
	 	
      Mutilated,
      Destroyed, Lost or Stolen Securities
	
      49

	 	
      Section
      2.10.
	 	
      Temporary
      Securities
	
      50

	 	
      Section
      2.11.
	 	
      Cancellation
	
      50

	 	
      Section
      2.12.
	 	
      Payment
      of Interest; Defaulted Interest
	
      51

	 	
      Section
      2.13.
	 	
      Computation
      of Interest
	
      52

	 	
      Section
      2.14.
	 	
      CUSIP
      Numbers
	
      52

	 	 	 	 	 
	
      ARTICLE
      III COVENANTS
	
      52

	 	
      Section
      3.1.
	 	
      Application
      of Certain Covenants
	
      52

	 	
      Section
      3.2.
	 	
      Payment
      of Principal, Premium, if any, and Interest, if any
	
      53

	 	
      Section
      3.3.
	 	
      Maintenance
      of Office or Agency
	
      53

	 	
      Section
      3.4.
	 	
      Money
      for Securities Payments to be Held in Trust; Unclaimed
    Money
	
      53

	 	
      Section
      3.5.
	 	
      Corporate
      Existence
	
      54

	 	
      Section
      3.6.
	 	
      Reports
      by the Company
	
      54

	 	
      Section
      3.7.
	 	
      Annual
      Review Certificate; Notice of Defaults or Events of
Default
	
      55

	 	
      Section
      3.8.
	 	
      Books
      of Record and Account
	
      55

	 	
      Section
      3.9.
	 	
      Limitation
      on Liens
	
      55

	 	
      Section
      3.10.
	 	
      Limitation
      on Incurrence of Indebtedness
	
      56

	 	
      Section
      3.11.
	 	
      Limitation
      on Preferred Stock of Restricted Subsidiaries
	
      60

	 	
      Section
      3.12.
	 	
      Limitation
      on Restricted Payments
	
      60

	 	
      Section
      3.13.
	 	
      Limitation
      on Certain Asset Dispositions
	
      64

	 	
      Section
      3.14.
	 	
      Limitation
      on Sale/Leaseback Transactions
	
      65

	 	
      Section
      3.15.
	 	
      Limitation
      on Payment Restrictions Affecting Restricted Subsidiaries
	
      66

	 	
      Section
      3.16.
	 	
      Limitation
      on Transactions with Affiliates.
	
      67

	 	
      Section
      3.17.
	 	
      Limitation
      on Guarantees by Restricted Subsidiaries
	
      69

E-29

EXHIBIT
4.35 (continued)

	
      ARTICLE
      IV CONSOLIDATION, MERGER OR SALE BY THE COMPANY
	
      70

	 	
      Section
      4.1.
	 	
      Consolidation,
      Merger or Sale of Assets Permitted
	
      70

	 	 	 	 	 
	
      ARTICLE
      V REDEMPTION OF SECURITIES
	
      72

	 	
      Section
      5.1.
	 	
      Applicability
      of Article
	
      72

	 	
      Section
      5.2.
	 	
      Election
      to Redeem; Notice to Trustee
	
      72

	 	
      Section
      5.3.
	 	
      Selection
      of Securities to be Redeemed
	
      72

	 	
      Section
      5.4.
	 	
      Notice
      of Redemption
	
      73

	 	
      Section
      5.5
	 	
      Deposit
      of Redemption Price
	
      73

	 	
      Section
      5.6.
	 	
      Securities
      Payable on Redemption Date
	
      74

	 	
      Section
      5.7.
	 	
      Securities
      Redeemed in Part
	
      74

	 	
      Section
      5.8.
	 	
      Optional
      Redemption
	
      74

	 	
      Section
      5.9.
	 	
      Offer
      to Repurchase Upon a Change of Control
	
      75

	 	 	 	 	 
	
      ARTICLE
      VI DEFAULTS AND REMEDIES
	
      77

	 	
      Section
      6.1.
	 	
      Events
      of Default
	
      77

	 	
      Section
      6.2.
	 	
      Acceleration;
      Rescission and Annulment
	
      78

	 	
      Section
      6.3.
	 	
      Collection
      of Indebtedness and Suits for Enforcement by Trustee
	
      79

	 	
      Section
      6.4.
	 	
      Trustee
      May File Proofs of Claim
	
      79

	 	
      Section
      6.5.
	 	
      Trustee
      May Enforce Claims Without Possession of Securities
	
      79

	 	
      Section
      6.6.
	 	
      Delay
      or Omission Not Waiver
	
      80

	 	
      Section
      6.7.
	 	
      Waiver
      of Past Defaults
	
      80

	 	
      Section
      6.8.
	 	
      Control
      by Majority
	
      80

	 	
      Section
      6.9.
	 	
      Limitation
      on Suits by Holders
	
      80

	 	
      Section
      6.10.
	 	
      Rights
      of Holders to Receive Payment
	
      81

	 	
      Section
      6.11.
	 	
      Application
      of Money Collected
	
      81

	 	
      Section
      6.12.
	 	
      Restoration
      of Rights and Remedies
	
      81

	 	
      Section
      6.13.
	 	
      Rights
      and Remedies Cumulative
	
      82

	 	
      Section
      6.14.
	 	
      Waiver
      of Usury, Stay or Extension Laws
	
      82

	 	
      Section
      6.15.
	 	
      Undertaking
      for Costs
	
      82

	 	 	 	 	 
	
      ARTICLE
      VII TRUSTEE
	
      82

	 	
      Section
      7.1.
	 	
      Certain
      Duties and Responsibilities of the Trustee
	
      82

	 	
      Section
      7.2.
	 	
      Rights
      of Trustee
	
      83

	 	
      Section
      7.3.
	 	
      Trustee
      May Hold Securities
	
      84

	 	
      Section
      7.4.
	 	
      Money
      Held in Trust
	
      84

	 	
      Section
      7.5.
	 	
      Trustee’s
      Disclaimer
	
      84

	 	
      Section
      7.6.
	 	
      Notice
      of Defaults
	
      84

	 	
      Section
      7.7.
	 	
      Reports
      by Trustee to Holders
	
      85

	 	
      Section
      7.8.
	 	
      Securityholder
      Lists
	
      85

	 	
      Section
      7.9.
	 	
      Compensation
      and Indemnity
	
      85

	 	
      Section
      7.10.
	 	
      Replacement
      of Trustee
	
      86

	 	
      Section
      7.11.
	 	
      Acceptance
      of Appointment by Successor
	
      87

	 	
      Section
      7.12.
	 	
      Eligibility;
      Disqualification
	
      88

	 	
      Section
      7.13.
	 	
      Merger,
      Conversion, Consolidation or Succession to Business
	
      88

	 	
      Section
      7.14.
	 	
      Appointment
      of Authenticating Agent
	
      88

E-30

EXHIBIT
4.35 (continued)

	
      ARTICLE
      VIII DISCHARGE OF INDENTURE; DEFEASANCE
	
      89

	 	
      Section
      8.1.
	 	
      Termination
      of Company’s Obligations Under this Indenture
	
      89

	 	
      Section
      8.2.
	 	
      Application
      of Trust Funds
	
      90

	 	
      Section
      8.3.
	 	
      Company’s
      Option to Effect Defeasance or Covenant Defeasance
	
      91

	 	
      Section
      8.4.
	 	
      Defeasance
      and Discharge
	
      91

	 	
      Section
      8.5.
	 	
      Covenant
      Defeasance
	
      91

	 	
      Section
      8.6.
	 	
      Conditions
      to Defeasance or Covenant Defeasance
	
      92

	 	
      Section
      8.7.
	 	
      Deposited
      Money and Government Obligations to Be Held in Trust
	
      93

	 	
      Section
      8.8.
	 	
      Repayment
      to Company
	
      93

	 	
      Section
      8.9.
	 	
      Indemnity
      for Government Obligations
	
      94

	 	 	 	 	 
	
      ARTICLE
      IX SUPPLEMENTAL INDENTURES
	
      94

	 	
      Section
      9.1.
	 	
      Supplemental
      Indentures Without Consent of Holders
	
      94

	 	
      Section
      9.2.
	 	
      Supplemental
      Indentures with Consent of Holders
	
      95

	 	
      Section
      9.3.
	 	
      Compliance
      with Trust Indenture Act
	
      96

	 	
      Section
      9.4
	 	
      Execution
      of Supplemental Indentures
	
      96

	 	
      Section
      9.5.
	 	
      Effect
      of Supplemental Indentures
	
      96

	 	 	 	 	 
	
      ARTICLE
      X SUBSIDIARY GUARANTEES
	
      96

	 	
      Section
      10.1.
	 	
      Subsidiary
      Guarantees
	
      96

	 	
      Section
      10.2.
	 	
      Obligations
      of Subsidiary Guarantors Unconditional
	
      98

	 	
      Section
      10.3.
	 	
      Limitation
      on Subsidiary Guarantors’ Liability
	
      98

	 	
      Section
      10.4.
	 	
      Releases
      of Subsidiary Guarantees
	
      99

	 	
      Section
      10.5.
	 	
      Release
      of International Guarantee
	
      99

	 	
      Section
      10.6.
	 	
      Application
      of Certain Terms and Provisions to Subsidiary Guarantors
	
      99

	 	 	 	 	 
	
      ARTICLE
      XI MISCELLANEOUS
	
      100

	 	
      Section
      11.1.
	 	
      Trust
      Indenture Act Controls
	
      100

	 	
      Section
      11.2.
	 	
      Notices
	
      100

	 	
      Section
      11.3.
	 	
      Communication
      by Holders with other Holders
	
      101

	 	
      Section
      11.4
	 	
      Certificate
      and Opinion as to Conditions Precedent
	
      101

	 	
      Section
      11.5.
	 	
      Statements
      Required in Certificate or Opinion
	
      101

	 	
      Section
      11.6.
	 	
      When
      Securities Disregarded
	
      102

	 	
      Section
      11.7.
	 	
      Rules
      by Trustee, Paying Agent and Registrar
	
      102

	 	
      Section
      11.8
	 	
      Legal
      Holidays
	
      102

	 	
      Section
      11.9.
	 	
      GOVERNING
      LAW
	
      102

	 	
      Section
      11.10.
	 	
      No
      Recourse Against Others
	
      102

	 	
      Section
      11.11.
	 	
      Successors
	
      102

	 	
      Section
      11.12.
	 	
      Multiple
      Originals
	
      103

	 	
      Section
      11.13.
	 	
      Variable
      Provisions
	
      103

	 	
      Section
      11.14.
	 	
      Qualification
      of Indenture
	
      103

	 	
      Section
      11.15.
	 	
      Table
      of Contents; Headings
	
      103

	 	
      Section
      11.16.
	 	
      Separability
	
      103

	 	
      Section
      11.17.
	 	
      Benefits
      of Indenture
	
      103

E-31

EXHIBIT
4.35 (continued)

EXHIBIT
A Form of
the Securities

EXHIBIT
B Form of
Certificate of Transfer

EXHIBIT
C Form of
Certificate of Exchange

EXHIBIT
D Form of
Certificate from Acquiring Institutional Accredited Investor

E-32

EXHIBIT
4.35 (continued)

INDENTURE,
dated as of March 2, 2005, among Navistar International Corporation, a Delaware
corporation (the “Company”),
International Truck and Engine Corporation, a Delaware corporation (the
“Guarantor”) and
The Bank of New York Trust Company, N.A., a national banking association, as
trustee (the “Trustee”).

 

Each
party agrees as follows for the benefit of the other party and for the equal and
ratable benefit of the Holders of (i) the Company’s 61⁄4% Senior Notes due
2012 issued on the Issue Date (the “Initial
Securities”),
(ii) if and when issued, an unlimited amount of additional 61⁄4% Senior Notes
due 2012 that may be offered from time to time subsequent to the Issue Date (the
“Additional
Securities”), and
(iii) if and when issued in exchange for Initial Securities as provided in a
Registration Rights Agreement (as hereinafter defined) or for Additional
Securities, the Company’s 61⁄4% Senior Notes due 2012 (the “Exchange
Securities”).

 

ARTICLE
I

 

DEFINITIONS
AND INCORPORATION BY REFERENCE

 

Section
1.1. Definitions.

 

“Acquired
Indebtedness” of any
specified Person means Indebtedness of any other Person and its Restricted
Subsidiaries existing at the time such other Person merged with or into or
became a Restricted Subsidiary of such specified Person or assumed by the
specified Person in connection with the acquisition of assets from such other
Person and not incurred by the specified Person in connection with or in
anticipation of (a) such other Person and its Restricted Subsidiaries being
merged with or into or becoming a Restricted Subsidiary of such specified Person
or (b) such acquisition by the specified Person.

 

“Additional
Securities” has the
meaning ascribed to it in the second introductory paragraph of this
Indenture.

 

“Affiliate” means,
when used with reference to any person, any other Person directly or indirectly
controlling, 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 or cause the direction
of management or policies of the referent 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.

 

“Agent” means
any Registrar, Paying Agent, authenticating agent or co-Registrar.

 

“Applicable
Procedures” means,
with respect to any transfer or exchange of or for beneficial interests in any
Global Security, the rules and procedures of the Depositary, Euroclear and
Clearstream that apply to such transfer or exchange.

 

“Asset
Disposition” means
any sale, transfer or other disposition (including, without limitation, by
merger, consolidation or sale-and-leaseback transaction) of:

 

E-33

EXHIBIT
4.35 (continued)

(1) shares of
Capital Stock of a Restricted Subsidiary of the Company (other than directors’
qualifying shares) or

 

(2) property
or assets of the Company or any of its Restricted Subsidiaries.

 

Notwithstanding
the foregoing, an Asset Disposition shall not include:

 

(1) any sale,
transfer or other disposition of shares of Capital Stock, property or assets by
a Restricted Subsidiary of the Company to the Company or to any Restricted
Subsidiary of the Company;

 

(2) any sale,
transfer or other disposition of defaulted receivables for collection or any
sale, transfer or other disposition of property or assets in the ordinary course
of business;

 

(3) dispositions
of assets in a single market transaction or series of related transactions with
an aggregate fair market value in any calendar year of less than
$10.0 million (with unused amounts in any calendar year being carried over
to the succeeding calendar years subject to a maximum of $20.0 million in
such next succeeding fiscal year);

 

(4) the grant
in the ordinary course of business of any license of patents, trademarks,
registrations therefor and other similar intellectual property;

 

(5) the
granting of any Lien (or foreclosure thereon) securing Indebtedness to the
extent that such Lien is granted in compliance with Section
3.9
herein;

 

(6) any sale,
transfer or other disposition constituting a Permitted Investment or Restricted
Payment permitted by Section
3.12 herein
or pursuant to the Master Intercompany Agreements;

 

(7) any
disposition of assets or property in the ordinary course of business to the
extent such property or assets are obsolete, worn-out or no longer useful in the
Company’s or any of its Subsidiaries’ business;

 

(8) the sale,
lease, conveyance or disposition or other transfer of all or substantially all
of the assets of the Company as permitted by Section
4.1
herein;

 

(9) sales of
accounts receivable, equipment and related assets (including contract rights) of
the type specified in the definition of “Qualified Securitization Transaction”
to a Securitization Subsidiary for the fair market value thereof;

 

(10) transfers
of accounts receivable, equipment and related assets (including contract rights)
of the type specified in the definition of “Qualified Securitization
Transaction” (or a fractional undivided interest therein) by a Securitization
Subsidiary in a Qualified Securitization Transaction; and

 

E-34

EXHIBIT
4.35 (continued)

(11) any sale
or other distribution of Capital Stock of, or Indebtedness or other securities
of, an Unrestricted Subsidiary.

 

“Asset
Sale Offer Trigger Date” has the
meaning set forth in Section
3.13
herein.

 

An
“Associate” of, or
a Person “associated” with,
any Person, means:

 

(1) any trust
or other estate in which such Person has a substantial beneficial interest or as
to which such Person serves as trustee or in a similar fiduciary capacity;
and

 

(2) any
relative or spouse of such Person, or any relative of such spouse, who has the
same home as such Person.

 

“Attributable
Indebtedness” in
respect of a Sale/Leaseback Transaction involving an operating lease means, as
at the time of determination, the present value (discounted at the implied
interest rate in such transaction compounded annually) of the total obligations
of the lessee for rental payments during the remaining term of the lease
included in such Sale/Leaseback Transaction (including any period for which such
lease has been extended).

 

“Authenticating
Agent” means
any authenticating agent appointed by the Trustee pursuant to Section
7.14
herein.

 

“Average
Life” means,
as of the date of determination, with respect to any Indebtedness for borrowed
money or Preferred Stock, the quotient obtained by dividing

 

(1) the sum
of the products of the number of years from the date of determination to the
dates of each successive scheduled principal or liquidation value payments of
such Indebtedness or Preferred Stock, respectively, and the amount of such
principal or liquidation value payments, by

 

(2) the sum
of all such principal or liquidation value payments.

 

“Beneficial
Owner” has the
meaning assigned to such term in Rule 13d-3 and Rule 13d-5 under the Exchange
Act, except that in calculating the beneficial ownership of any particular
“person” (as that term is used in Section 13(d)(3) of the Exchange Act), such
“person” shall be deemed to have beneficial ownership of all securities that
such “person” has the right to acquire by conversion or exercise of other
securities, whether such right is currently exercisable or is exercisable only
upon occurrence of a subsequent condition (other than a condition that the
Holders waive one or more provisions of this Indenture).

 

“Board
of Directors” means
(i) with respect to a corporation, the board of directors of the corporation,
(ii) with respect to a partnership, the board of directors of the general
partner of the partnership, and (iii) with respect to any other Person, the
board or committee of such Person serving a similar function.

 

“Board
Resolution” means a
copy of a resolution of the Board of Directors of the Company or the equivalent
body of any Subsidiary Guarantor, as applicable, certified by the

 

E-35

EXHIBIT
4.35 (continued)

Secretary
or an Assistant Secretary of the Company, or the equivalent officer of any
Subsidiary Guarantor, as applicable, to have been duly adopted by the Board of
Directors of the Company or the equivalent body of any Subsidiary Guarantor, as
applicable, and to be in full force and effect on the date of the certificate,
and delivered to the Trustee.

 

“Book-Entry
Interest” means a
depositary interest representing 100% beneficial interest in a Global
Security.

 

“Broker-Dealer” has the
meaning set forth in the Registration Rights Agreement.

 

“Business
Day,” means
a day (other than Saturday or Sunday) on which Euroclear, Clearstream and the
banks in New York are open for business.

 

“Capital
Stock” means,
with respect to any Person, any and all shares, interests, participations,
rights in, or other equivalents (however designated and whether voting or
non-voting) of, such Person’s capital stock, including each class of Common or
Preferred Stock of such Person, whether outstanding on the Issue Date or issued
after the Issue Date, and any and all rights, warrants or options exchangeable
for or convertible into such capital stock.

 

“Capitalized
Lease Obligation” means
obligations under a lease that are required to be classified and accounted for
as capital lease obligations under GAAP and, for purposes of this Indenture, the
amount of such obligations at any date shall be the capitalized amount of such
obligations at such date, determined in accordance with GAAP. The Stated
Maturity of such obligation shall be the date of the last payment of rent or any
other amount due under such lease prior to the first date upon which such lease
may be terminated by the lessee without penalty.

 

“Cash
Equivalents”
means:

 

(1) United
States dollars or in the case of any Foreign Subsidiary, such local currencies
held by it from time to time in the ordinary course of business;

 

(2) securities
issued or directly and fully guaranteed or insured by the United States or
Canadian government (federal or provincial) or any agency or instrumentality of
the United States or Canadian government (provided that the
full faith and credit of the United States or Canada (federal or provincial, as
the case may be), as the case may be, is pledged in support of those securities)
having maturities of not more than twenty-four months from the date of
acquisition;

 

(3) certificates
of deposit and eurodollar time deposits with maturities of twenty-four months or
less from the date of acquisition, bankers’ acceptances with maturities not
exceeding twenty-four months and overnight bank deposits, in each case, with any
commercial bank incorporated under the laws of the United States, any state
thereof, the District of Columbia, Canada or any province or territory thereof
having capital and surplus in excess of $500.0 million and a Thomson Bank
Watch Rating of “B” or better;

 

E-36

EXHIBIT
4.35 (continued)

(4) repurchase
obligations or securities lending arrangements for underlying securities of the
types described in clauses (2) and (3) above entered into with any financial
institution meeting the qualifications specified in clause (3)
above;

 

(5) commercial
paper having a rating of at least “A-2” from S&P or “P-2” from Moody’s and
in each case maturing within 270 days after the date of acquisition or asset
backed securities having a rating of at least “A” from S&P or “A2” from
Moody’s and in each case maturing within thirty-six months after the date of
acquisition;

 

(6) with
respect to any Foreign Subsidiary having its principal operations in Mexico
only, (i) Certificados de la Tesoreria de la Federacion (Cetes), Bonos de
Desarrollo del Gobierno Federal (Bondes) or Bonos Adjustables del Gobierno
Federal (Adjustabonos), in each case, issued by the Mexican government; and
(ii) any other instruments issued or guaranteed by Mexico and denominated
and payable in pesos; provided, that,
in each case, such investments under this clause (6) are made in the
ordinary course of business for cash management purposes;

 

(7) demand or
time deposit accounts used in the ordinary course of business with overseas
branches of commercial banks incorporated under the laws of the United States of
America, any state thereof, the District of Columbia, Canada or any province or
territory thereof, provided that
such commercial bank has, at the time of the Company’s or such Restricted
Subsidiary’s Investment therein, (1) capital, surplus and undivided profits
(as of the date of such institution’s most recently published financial
statements) in excess of $100 million and (2) the long-term unsecured
debt obligations (other than such obligations rated on the basis of the credit
of a Person other than such institution) of such institution, at the time of the
Company’s or any Restricted Subsidiary’s Investment therein, are rated at least
“A” from S&P or “A2” from Moody’s;

 

(8) obligations
(including, but not limited to demand or time deposits, bankers’ acceptances and
certificates of deposit) issued or guaranteed by a depository institution or
trust company incorporated under the laws of the United States of America, any
state thereof, the District of Columbia, Canada or any province or territory
thereof, provided that (A)
such instrument has a final maturity not more than one year from the date of
purchase thereof by the Company or any Restricted Subsidiary of the Company and
(B) such depository institution or trust company has at the time of the
Company’s or such Restricted Subsidiary’s Investment therein or contractual
commitment providing for such Investment, (x) capital, surplus and
undivided profits (as of the date of such institution’s most recently published
financial statements) in excess of $100 million and (y) the long-term
unsecured debt obligations (other than such obligations rated on the basis of
the credit of a Person other than such institution) of such institution, at the
time of the Company’s or such Restricted Subsidiary’s Investment therein or
contractual commitment providing for such Investment, are rated at least “A”
from S&P or “A2” from Moody’s;

 

E-37

EXHIBIT
4.35 (continued)

(9) in the
case of any Foreign Subsidiary, demand or time deposit accounts used in the
ordinary course of business with reputable commercial banks located in the
jurisdiction of organization of such Foreign Subsidiary; and

 

(10) money
market funds at least 95% of the assets of which constitute Cash Equivalents of
the kinds described in clauses (1) through (5) of this
definition.

 

Notwithstanding
the foregoing, Investments which would otherwise constitute Cash Equivalents of
the kinds described in clauses (2), (3), (4) and (5) that are permitted to
have maturities in excess of twelve months shall only be deemed to be Cash
Equivalents under this definition if and only if the total weighted average
maturity of all Cash Equivalents of the kinds described in clauses (2),
(3), (4) and (5) does not exceed twelve months on an aggregate
basis.

 

“Change
of Control” means
the occurrence of one or more of the following events:

 

(1) any
“person” or “group” (as such terms are used in Section 13(d) and 14(d) of
the Exchange Act), other than employee or retiree benefit plans or trusts
sponsored or established by the Company or the Guarantor, is or becomes the
“beneficial owner” (as defined in Rule 13d-3 under the Exchange Act),
directly or indirectly, of securities of the Company representing 35% or more of
the combined voting power of the Company’s then outstanding Voting
Stock;

 

(2) the
following individuals cease for any reason to constitute more than a majority of
the number of directors then serving on the Board of Directors of the Company:
individuals who, on the Issue Date, constitute the Board of Directors and any
new director (other than a director whose initial assumption of the office is in
connection with an actual or threatened election contest, including but not
limited to a consent solicitation, relating to the election of directors of the
Company) whose appointment or election by the Board of Directors or nomination
for election by the Company’s stockholders was approved (a) by the vote of
at least a majority of the directors then still in office or whose appointment,
election or nomination was previously so approved or recommended or
(b) with respect to directors whose appointment of election to the Board of
Directors was made by the holders of the Company’s nonconvertible junior
preference stock, series B, by the holders of such preference
stock;

 

(3) the
shareholders of the Company shall approve any Plan of Liquidation (whether or
not otherwise in compliance with the provisions of this Indenture);

 

(4) the
Company consolidates with or merges with or into another Person, other than a
merger or consolidation of the Company in which the holders of the Common Stock
of the Company outstanding immediately prior to the consolidation or merger
hold, directly or indirectly, at least a majority of the Common Stock of the
surviving corporation immediately after such consolidation or merger;
or

 

E-38

EXHIBIT
4.35 (continued)

(5) the
Company or any Restricted Subsidiary of the Company, directly or indirectly,
sells, assigns, conveys, transfers, leases or otherwise disposes of, in one
transaction or a series of related transactions, all or substantially all of the
property or assets of the Company and the Restricted Subsidiaries of the Company
(determined on a consolidated basis) to any Person (other than a Permitted Joint
Venture in a transaction entered into in compliance with Section
3.12 herein);
provided, that
neither (a) the merger of a Restricted Subsidiary of the Company into the
Company or into any Restricted Subsidiary of the Company nor (b) a series
of transactions involving the sale of Receivables or interests therein in the
ordinary course of business by a Securitization Subsidiary in connection with a
Qualified Securitization Transaction, shall be deemed to be a Change of
Control.

 

For
purposes of the foregoing, the transfer (by lease, assignment, sale or
otherwise, in a single transaction or series of transactions) of all or
substantially all of the properties or assets of one or more Restricted
Subsidiaries of the Company, the Capital Stock of which constitutes all or
substantially all of the properties and assets of the Company, shall be deemed
to be the transfer of all or substantially all of the properties and assets of
the Company.

 

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

 

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

 

“Commodity
Agreement” means
any future contract or similar agreement or arrangement designed to protect,
hedge or manage against fluctuations in prices of commodities used by the
Company or any of its Restricted Subsidiaries in the ordinary course of
business.

 

“Common
Stock” of any
Person means any and all shares, interests or other participations in, and other
equivalents (however designated and whether voting or non-voting) of such
Person’s common stock, whether outstanding on the Issue Date or issued after the
Issue Date, and includes, without limitation, all series and classes of such
common stock.

 

“Company” means
Navistar International Corporation, a Delaware corporation, or a successor
Person.

 

“Company
Order” and
“Company
Request” mean,
respectively, a written order or request signed in the name of the Company by
two Officers, one of whom must be the Chairman of the Board, the President, the
Chief Financial Officer, any Executive Vice President, Senior Vice President or
Vice President, the Treasurer, any Assistant Treasurer or the Controller of the
Company.

 

E-39

EXHIBIT
4.35 (continued)

“Consolidated
Cash Flow Available For Fixed Charges” of any
Person means for any period the Consolidated Net Income of such Person for such
period plus (to the extent Consolidated Net Income for such period has been
reduced thereby):

 

(1) Consolidated
Interest Expense of such Person for such period; plus

 

(2) Consolidated
Tax Expense of such Person for such period; plus

 

(3) the
consolidated depreciation and amortization expense included in the income
statement of such Person prepared in accordance with GAAP for such period;
plus

 

(4) any
non-recurring fees, expenses or charges related to any offering of Qualified
Capital Stock, Permitted Investment, acquisition, recapitalization or incurrence
of Indebtedness permitted under this Indenture (in each case, whether or not
successful); plus

 

(5) any other
non-cash charges to the extent deducted from or reflected in Consolidated Net
Income except for any non-cash charges that represent accruals of, or reserves
for, cash disbursements to be made in any future accounting period;
minus

 

(6) any
non-cash items increasing Consolidated Net Income for such period (other than
the reversal of a prior accrual or reserve for cash items previously excluded
from Consolidated Cash Flow Available For Fixed Charges); minus

 

(7) all cash
payments during such period relating to non-cash charges that were added back in
determining Consolidated Cash Flow Available For Fixed Charges in any prior
period.

 

“Consolidated
Cash Flow Ratio” of any
Person means, for any period, the ratio of

 

(1) Consolidated
Cash Flow Available for Fixed Charges of such Person for such period
to

 

(2) Consolidated
Fixed Charges for such period; provided,
however, that
all incurrences and repayments of Indebtedness (including the incurrence giving
rise to such calculation and any repayments in connection therewith) and all
dispositions (including discontinued operations) or acquisition of assets (other
than in the ordinary course of business) made during or after such period and on
or prior to the date of determination shall be given pro forma effect as if they
occurred on the first day of such four-quarter period.

 

Calculations
of pro forma amounts in accordance with this definition shall be done in
accordance with Article 11 of Regulation S-X under the Securities Act
or any successor provision.

 

E-40

EXHIBIT
4.35 (continued)

“Consolidated
Fixed Charges” means,
with respect to any Person for any period, the sum of, without duplication, the
amounts for such period, taken as a single accounting period, of:

 

(1) Consolidated
Interest Expense; and

 

(2) the
product of (a) the amount of all dividend requirements (whether or not
declared) on Preferred Stock of such Person, whether in cash or otherwise
(except dividends payable in shares of Qualified Capital Stock) paid, accrued or
scheduled to be paid or accrued during such period times (b) a fraction,
the numerator of which is one and the denominator of which is one minus the then
current effective consolidated Federal, state, local and foreign tax rate
(expressed as a decimal number between 1 and 0) of such Person (as
reflected in the audited consolidated financial statements of such Person for
the most recently completed fiscal year).

 

In
calculating “Consolidated Fixed Charges” for purposes of determining the
denominator (but not the numerator) of this “Consolidated Fixed Charge Coverage
Ratio,”

 

(1) interest
on Indebtedness determined on a fluctuating basis as of the date of
determination and which will continue to be so determined thereafter shall be
deemed to have accrued at a fixed rate per annum equal to the rate of interest
on such Indebtedness in effect on the date of determination;

 

(2) if
interest on any Indebtedness actually incurred on the date of determination may
be optionally determined at an interest rate based upon a factor of a prime or
similar rate, a eurocurrency interbank offered rate or other rates, then the
interest rate in effect on the date of determination will be deemed to have been
in effect during the relevant four-quarter period reference; and

 

(3) notwithstanding
the foregoing, interest on Indebtedness determined on a fluctuating basis, to
the extent such interest is covered by agreements relating to interest swap
agreements, shall be deemed to accrue at the rate per annum resulting after
giving effect to the operation of such agreements.

 

“Consolidated
Interest Expense” means,
with respect to any Person for any period, the aggregate of the net interest
expense of such Person and its Consolidated Subsidiaries for such period (after
giving effect to any interest income), on a consolidated basis, as determined in
accordance with GAAP, including:

 

(1) all
amortization of original issue discount;

 

(2) the
interest component of Capitalized Lease Obligations paid, accrued and/or
scheduled to be paid or accrued by such Person during such period;

 

(3) net cash
costs paid under all Interest Rate Protection Agreements (including amortization
of fees);

 

(4) all
capitalized interest; and

 

E-41

EXHIBIT
4.35 (continued)

(5) the
interest portion of any deferred payment obligations for such
period.

 

“Consolidated
Net Income” means,
with respect to any Person for any period, the consolidated net income (or
deficit) of such Person and its Restricted Subsidiaries for such period, on a
consolidated basis, as determined in accordance with GAAP and before any
reduction in respect of dividends accrued or paid on any Preferred stock, if
any; provided, that
any amounts received from any other Person (other than a Restricted Subsidiary)
shall be included in Consolidated Net Income for that period to the extent of
the amount that has been actually received by the referent Person or a
Restricted Subsidiary of the referent Person in the form of cash dividends or
other cash distributions (other than payments in respect of debt obligations),
and provided,
further, that
there shall be excluded:

 

(1) any
restoration to income of any contingency reserve, except to the extent that
provision for such reserve was made out of Consolidated Net Income accrued at
any time following the 71⁄2% Notes Issue Date;

 

(2) any gain
or loss, together with any related provisions for taxes, realized upon the sale
or other disposition (including, without limitation, dispositions pursuant to
sale-leaseback transactions) of any property or assets which are not sold or
otherwise disposed of in the ordinary course of business (provided that
sales of Receivables or interests therein pursuant to Qualified Securitization
Transactions shall be deemed to be in the ordinary course of business) and upon
the sale or other disposition of any Capital Stock of any Subsidiary of the
referent Person;

 

(3) any
extraordinary gain or extraordinary loss together with any related provision for
taxes and any one time gains or losses (including, without limitation, those
related to the adoption of new accounting standards) realized by the referent
Person or any of its Restricted Subsidiaries during the period for which such
determination is made;

 

(4) income or
loss attributable to discontinued operations (including, without limitation,
operations disposed of during such period whether or not such operations were
classified as discontinued);

 

(5) in the
case of a successor to the referent Person by consolidation or merger or as a
transferee of the referent Person’s assets, any earnings of the successor
corporation prior to such consolidation, merger or transfer of assets;

 

(6) the net
income of any Restricted Subsidiary of such Person which is subject to
restrictions which prevent or limit the payment of dividends or the making of
distributions to such Person to the extent of such restrictions (except to the
extent of the amount of dividends or distributions that have been paid to such
Person or one or more Restricted Subsidiary not subject to any such restriction
during the relevant period);

 

(7) any
non-cash goodwill or other asset impairment charges incurred subsequent to the
71⁄2% Notes Issue Date; and

 

E-42

EXHIBIT
4.35 (continued)

(8) non-cash
compensation charges, including any such charges resulting from stock options,
restricted stock grants or other equity-incentive programs.

 

“Consolidated
Net Tangible Assets” as of
any date of determination means the total amount of assets of the Company and
its consolidated subsidiaries after deducting therefrom all current liabilities
(excluding any current liabilities that by their terms are extendable or
renewable at the option of the obligor thereon to a time more than twelve months
after the time as of which the amount thereof is being computed); total prepaid
expenses and deferred charges; and all goodwill, trade names, trademarks,
patents, licenses, copyrights and other intangible assets, all as set forth, or
on a pro forma basis would be set forth, on the consolidated balance sheet of
the Company and its consolidated subsidiaries for the Company’s most recently
completed fiscal quarter, prepared in accordance with GAAP.

 

“Consolidated
Stockholders’ Equity” as of
any date means with respect to any Person the amount, determined in accordance
with GAAP, by which the assets of such Person and of its Restricted Subsidiaries
on a consolidated basis exceed the sum of (1) the total liabilities of such
Person and of its Restricted Subsidiaries on a consolidated basis, plus
(2) any redeemable Preferred Stock of such Person.

 

“Consolidated
Subsidiary” of any
Person means a Restricted Subsidiary which for financial reporting purposes is
or, in accordance with GAAP, should be, accounted for by such Person as a
consolidated Subsidiary.

 

“Consolidated
Tax Expense” means,
with respect to any Person for any period, the aggregate of the U.S. Federal,
state and local tax expense attributable to taxes based on income and foreign
income tax expenses of such Person and its Consolidated Subsidiaries for such
period (net of any income tax benefit), determined in accordance with GAAP other
than taxes (either positive or negative) attributable to extraordinary or
unusual gains or losses or taxes attributable to sales or dispositions of
assets.

 

“Corporate
Trust Office” means
the office of the Trustee in which at any particular time its corporate trust
business shall be principally administered, which office at the date hereof is
located at 2 North LaSalle Street, Suite 1020, Chicago, Illinois, 60602,
Attention: Corporate Trust Administration.

 

“Currency
Agreement” means
any foreign exchange contract, currency swap agreement or other similar
agreement or arrangement designed to protect, hedge or manage the Company or any
of its Restricted Subsidiaries against fluctuations in currency values to or
under which the Company or any of its Restricted Subsidiaries is a party or a
beneficiary on the date of this Indenture or becomes a party or a beneficiary
thereafter.

 

“DealCor
Subsidiaries” means
any Subsidiaries owned as of the Issue Date by the Company or one of its
Subsidiaries or acquired by the Company or one of its Subsidiaries after the
Issue Date whose principal business is a dealership of the
Guarantor.

 

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

 

E-43

EXHIBIT
4.35 (continued)

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

 

“Depositary” means
the Person appointed by the Company to act as depositary with respect to the
Global Securities, which shall initially be DTC.

 

“Depositary
Interest” means a
certificate or depositary interest representing 100% beneficial interest in a
Global Security.

 

“Disqualified
Capital Stock” means
any Capital Stock that, other than solely at the option of the issuer thereof,
by its terms (or by the terms of any security into which it is convertible or
exchangeable) is, or upon the happening of an event or the passage of time would
be, required to be redeemed or repurchased, in whole or in part, prior to the
first anniversary of the Maturity Date or has, or upon the happening of an event
or the passage of time would have, a redemption or similar payment due on or
prior to the first anniversary of the Maturity Date, or is convertible into or
exchangeable for debt securities at the option of the holder thereof at any time
prior to the first anniversary of the Maturity Date.

 

“DTC” means
the Depository Trust Company, its nominees and their respective successors and
assigns.

 

“Euroclear” means
Euroclear Bank S.A./N.V., as operator of the Euroclear system, and any successor
thereto.

 

“Event
of Default” has the
meaning set forth in Section
6.1
herein.

 

“Exchange
Act” means
the Securities Exchange Act of 1934, as amended.

 

“Exchange
Offer” shall
have the meaning set forth in the Registration Rights Agreement.

 

“Exchange
Offer Registration Statement” has the
meaning set forth in the Registration Rights Agreement.

 

“Exchange
Securities” has the
meaning ascribed to it in the second introductory paragraph of this
Indenture.

 

“Foreign
Subsidiary” means
any Restricted Subsidiary of the Company that is not organized under the laws of
the United States, any state thereof or the District of Columbia.

 

“4.75%
Subordinated Exchangeable Notes” means
the $220 million aggregate principal amount of 4.75% Subordinated
Exchangeable Notes due 2009 of NFC originally issued under the Indenture, dated
as of March 25, 2002, between NFC, as issuer, the Company and The Bank of
New York Trust Company, N.A., as trustee.

 

E-44

EXHIBIT
4.35 (continued)

“GAAP” means
generally accepted accounting principles set forth in the opinions and
pronouncements of the Accounting Principles Board of the American Institute of
Certified Public Accountants and statements and pronouncements of the Financial
Accounting Standards Board or in such other statements by such other entity as
may be approved by a significant segment of the accounting profession of the
United States, which are in effect as of the 71⁄2% Notes Issue Date.

 

“Global
Securities” means,
individually and collectively, each of the Restricted Global Securities and the
Unrestricted Global Securities, issued in accordance with certain sections of
this Indenture.

 

“Global
Security Legend” means
the legend set forth in Section
2.6(g)(ii), which
is required to be placed on all Global Securities issued under this
Indenture.

 

“Government
Obligations” means
securities which are (i) direct obligations of the United States, for the
payment of which its full faith and credit is pledged or (ii) obligations of a
Person controlled or supervised by and acting as an agency or instrumentality of
the United States, the payment of which is unconditionally guaranteed as a full
faith and credit obligation by the United States, which are not callable or
redeemable at the option of the issuer thereof, and shall also include a
depositary receipt issued by a bank or trust company as custodian with respect
to any such Government Obligation or a specific payment of interest on or
principal of any such Government Obligation held by such custodian for the
account of the holder of a depositary 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 depositary receipt from
any amount received by the custodian in respect of the Government Obligation
evidenced by such depositary receipt.

 

“guarantee” means
any obligation, contingent or otherwise, of any Person directly or indirectly
guaranteeing any Indebtedness of any other Person and, without limiting the
generality of the foregoing, any obligation, direct or indirect, contingent or
otherwise, of such Person:

 

(1) to
purchase or pay (or advance or supply funds for the purchase or payment of) such
Indebtedness of such other Person (whether arising by virtue of partnership
arrangements, or by agreement to keepwell, to purchase assets, goods, securities
or services, to take-or-pay, or to maintain financial statement conditions or
otherwise) or

 

(2) entered
into for purposes of assuring in any other manner the obligee of such
Indebtedness of the payment thereof or to protect such obligee against loss in
respect thereof (in whole or in part); provided that the
term “guarantee” shall not include endorsements for collection or deposit in the
ordinary course of business. The term “guarantee” used as a verb has a
corresponding meaning.

 

“Guarantor” means
International Truck and Engine Corporation, a Delaware corporation, or a
successor Person.

 

E-45

EXHIBIT
4.35 (continued)

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

 

“incur” means,
with respect to any Indebtedness or other obligation of any Person, to create,
issue, incur (by conversion, exchange or otherwise), assume, guarantee or
otherwise become liable in respect of such Indebtedness or other obligation or
the recording, as required pursuant to GAAP or otherwise, of any such
Indebtedness or other obligation on the balance sheet of such Person (and
“incurrence,” “incurred,” “incurable” and “incurring” shall have meanings
correlative to the foregoing); provided that the
accrual of interest (whether such interest is payable in cash or in kind) and
the accretion of original issue discount shall not be deemed an incurrence of
Indebtedness; provided,
further,
that:

 

(1) any
Indebtedness or Capital Stock of a Person existing at the time such Person
becomes (after the Issue Date) a Restricted Subsidiary (whether by merger,
consolidation, acquisition or otherwise) of the Company shall be deemed to be
incurred or issued, as the case may be, by such Restricted Subsidiary at the
time it becomes a Restricted Subsidiary of the Company; and

 

(2) any
amendment, modification or waiver of any document pursuant to which Indebtedness
was previously incurred shall not be deemed to be an incurrence of Indebtedness
unless and then only to the extent such amendment, modification or waiver
increases the principal or premium thereof or interest rate thereon (including
by way of original issue discount).

 

“Indebtedness” means,
with respect to any Person, at any date, any of the following, without
duplication:

 

(1) any
liability, contingent or otherwise, of such Person (a) for borrowed money
(whether or not the recourse of the lender is to the whole of the assets of such
Person or only to a portion thereof), (b) evidenced by a note, bond,
debenture or similar instrument or letters of credit (including a purchase money
obligation) or (c) for the payment of money relating to a Capitalized Lease
Obligation or other obligation (whether issued or assumed) relating to the
deferred purchase price of property, but excluding trade accounts payable of
such Person arising in the ordinary course of business;

 

(2) all
conditional sale obligations and all obligations under any title retention
agreement (even if the rights and remedies of the seller under such agreement in
the event of default are limited to repossession or sale of such property), but
excluding trade accounts payable of such Person arising in the ordinary course
of business;

 

(3) all
obligations for the reimbursement of any obligor on any letter of credit,
banker’s acceptance or similar credit transaction entered into in the ordinary
course of business;

 

(4) all
Indebtedness of others secured by (or for which the holder of such Indebtedness
has an existing right, contingent or otherwise, to be secured by) any Lien

 

E-46

EXHIBIT
4.35 (continued)

(other
than in connection with property subject to a Qualified Securitization
Transaction) on any asset or property (including, without limitation, leasehold
interests and any other tangible or intangible property) of such Person, whether
or not such Indebtedness is assumed by such Person or is not otherwise such
Person’s legal liability; provided, that if
the obligations so secured have not been assumed by such Person or are otherwise
not such Person’s legal liability, the amount of such Indebtedness for the
purposes of this definition shall be limited to the lesser of the amount of such
Indebtedness secured by such Lien or the fair market value of the assets or
property securing such Lien;

 

(5) all
Indebtedness of others (including all dividends of other Persons the payment of
which is) guaranteed, directly or indirectly, by such Person or that is
otherwise its legal liability or which such Person has agreed to purchase or
repurchase or in respect of which such Person has agreed contingently to supply
or advance funds;

 

(6) all
Disqualified Capital Stock issued by such Person with the amount of Indebtedness
represented by such Disqualified Capital Stock being equal to the greater of its
voluntary or involuntary liquidation preference and its maximum fixed repurchase
price, but excluding accrued dividends if any;

 

(7) all net
amounts owing under Interest Rate Protection Agreements; and

 

(8) all
Attributable Indebtedness in respect of Sale/Leaseback Transactions entered into
by such person.

 

For
purposes hereof, the “maximum fixed repurchase price” of any Disqualified
Capital Stock which does not have a fixed repurchase price shall be calculated
in accordance with the terms of such Disqualified Capital Stock as if such
Disqualified Capital Stock were purchased on any date on which Indebtedness
shall be required to be determined pursuant to this Indenture, and if such price
is based upon, or measured by, the fair market value of such Disqualified
Capital Stock, such fair market value shall be determined reasonably and in good
faith by the Board of Directors of the issuer of such Disqualified Capital
Stock. Indebtedness shall not include any guarantees of obligations of suppliers
to the Company or any Restricted Subsidiary that ensure timely delivery of
products, tooling and other materials used in the production
process.

 

The
amount of Indebtedness of any Person at any date shall be the outstanding
balance without duplication at such date of all unconditional obligations as
described above and the maximum liability, upon the occurrence of the
contingency giving rise to the obligation, of any contingent obligations at such
date; provided that the
amount outstanding at any time of any Indebtedness issued with original issue
discount is the full amount of such Indebtedness less the remaining unamortized
portion of the original issue discount of such Indebtedness at such time as
determined in accordance with GAAP.

 

E-47

EXHIBIT
4.35 (continued)

“Indenture” means
this Indenture, as originally executed or as amended or supplemented from time
to time and shall include the forms and terms of the Securities established as
contemplated hereunder.

 

“Indirect
Participant” means a
person who holds an interest through a Participant.

 

“Initial
Global Securities” means
the Regulation S Global Security and the Rule 144A Global Security, each of
which contains a Private Placement Legend.

 

“Initial
Securities” has the
meaning ascribed to it in the second introductory paragraph of this
Indenture.

 

“Interest
Rate Protection Agreement” means
any interest rate protection agreement, interest rate future agreement, interest
rate option agreement, interest rate swap agreement (whether from fixed to
floating or from floating to fixed), interest rate cap agreement, interest rate
collar agreement, interest rate hedge agreement or other similar agreement or
arrangement designed to protect, hedge or manage a Person or any Restricted
Subsidiary against fluctuations in interest rates to or under which such Person
or any Restricted Subsidiary of such Person is a party or a beneficiary on the
Issue Date or becomes a party or a beneficiary thereafter.

 

“International
Guarantee” means
the guarantee of the Securities by the Guarantor pursuant to Article
X
herein.

 

“Investment” by any
Person means any direct or indirect:

 

(1) loan,
advance or other extension of credit or capital contribution (by means of
transfers of cash or other property (valued at the fair market value thereof as
of the date of transfer) to others or payments for property or services for the
account or use of others, or otherwise other than in the ordinary course of
business) and any guarantee of Indebtedness of any other Person;

 

(2) purchase
or acquisition of Capital Stock, bonds, notes, debentures or other securities or
evidences of Indebtedness issued by any other Person (whether by merger,
consolidation, amalgamation or otherwise and whether or not purchased directly
from the issuer of such securities or evidences of Indebtedness);
and

 

(3) all other
items that would be classified as investments (including, without limitation,
purchases of assets outside the ordinary course of business) on a balance sheet
of such Person prepared in accordance with GAAP.

 

Investments
shall exclude (a) transactions pursuant to the Master Intercompany
Agreements and (b) extensions of loans, trade credit and advances to
customers and suppliers to the extent made in the ordinary course of
business.

 

For
purposes of the definition of “Unrestricted Subsidiary” and Section
3.12 herein
only,

 

E-48

EXHIBIT
4.35 (continued)

(1) “Investment” shall
include the portion (proportionate to the Company’s equity interest in such
Subsidiary) of the fair market value of the net assets of any Subsidiary of the
Company at the time that such Subsidiary is designated an Unrestricted
Subsidiary; provided, that if
such designation is made in connection with the acquisition of such Subsidiary
or the assets owned by such Subsidiary, the “Investment” in such Subsidiary
shall be deemed to be the consideration paid in connection with such
acquisition; provided,
further, that
upon a redesignation of such Subsidiary as a Restricted Subsidiary, the Company
shall be deemed to continue to have a permanent “Investment” in an Unrestricted
Subsidiary in an amount (if positive) equal to (a) the Company’s
“Investment” in such Subsidiary at the time of such redesignation less
(b) the portion (proportionate to the Company’s equity interest in such
Subsidiary) of the fair market value of the net assets of such Subsidiary at the
time of such redesignation and

 

(2) any
property transferred to or from an Unrestricted Subsidiary shall be valued at
its fair market value at the time of such transfer, in each case as determined
in good faith by the Board of Directors.

 

“Investment
Grade”
means:

 

(1) with
respect to S&P, any of the rating categories from and including AAA to and
including BBB-; and

 

(2) with
respect to Moody’s, any of the rating categories from and including Aaa to and
including Baa3.

 

“Issue
Date” means
the date on which the Initial Securities are originally issued under this
Indenture. 

 

“Legended
Regulation S Global Security” means a
Global Security in the form of Exhibit A hereto
bearing the Global Security Legend and the Private Placement Legend and
deposited with or on behalf of and registered in the name of the Depositary or
its nominee, issued in a denomination equal to the outstanding principal amount
at maturity of the Securities initially sold in reliance on Rule 903 of
Regulation S.

 

“Letter
of Transmittal” means
the letter of transmittal to be prepared by the Company and sent to all Holders
of the Securities for use by such Holders in connection with the Exchange
Offer.

 

“Lien” means,
with respect to any Person, any mortgage, pledge, lien, encumbrance, easement,
restriction, covenant, right-of-way, charge or adverse claim affecting tide or
resulting in an encumbrance against real or personal property of such Person, or
a security interest of any kind, including any conditional sale or other title
retention agreement, any lease in the nature thereof, any option, right of first
refusal or other similar agreement to sell, in each case securing obligations of
such Person and any filing of or agreement to give any financing statement under
the Uniform Commercial Code (or equivalent statute or statutes) of any
jurisdiction but excluding any such filing or agreement which reflects ownership
by a third party of

 

E-49

EXHIBIT
4.35 (continued)

(1) property
leased to the referent Person or any of its Restricted Subsidiaries under a
lease that is not in the nature of a conditional sale or title retention
agreement or

 

(2) accounts,
general intangibles or chattel paper sold to the referent Person.

 

“Master
Intercompany Agreements” means
(i) the Master Intercompany Agreement dated as of April 26, 1993
between Navistar Financial Corporation and International Truck and Engine
Corporation (formerly known as Navistar International Transportation Corp.), as
amended and as it may be amended, modified, supplemented or restated form time
to time; and (ii) one or more similar agreements entered into after the
Issue Date among the Company or one of its Restricted Subsidiaries and one or
more Unrestricted Subsidiary that comprise of the Company’s financial services
operations, as such agreements may be amended, modified, supplemented or
restated from time to time.

 

“Material
Subsidiary” means,
at any date of determination, any Subsidiary of the Company that, together with
its Subsidiaries,

 

(1) for the
most recent fiscal year of the Company accounted for more than 5% of the
consolidated revenues of the Company or

 

(2) as of the
end of such fiscal year, was the owner of more than 5% of the consolidated
assets of the Company, all as set forth on the most recently available
consolidated financial statements of the Company and its Consolidated
Subsidiaries for such fiscal year prepared in conformity with GAAP.

 

“Maturity
Date” means
March 1, 2012.

 

“Moody’s” means
Moody’s Investors Service Inc., and its successors.

 

“Net
Available Proceeds” from
any Asset Disposition by any Person means cash or readily marketable cash
equivalents received (including by way of sale or discounting of a note,
installment receivable or other receivable, but excluding any other
consideration received in the form of assumption by the acquirer of Indebtedness
or other obligations relating to such properties or assets or received in any
other non-cash form) therefrom by such Person, including any cash received by
way of deferred payment or upon the monetization or other disposition of any
non-cash consideration (including notes or other securities) received in
connection with such Asset Disposition, net of:

 

(1) all
legal, title and recording tax expenses, commissions and other fees and expenses
incurred (including, without limitation, fees and expenses of accountants,
brokers, printers and other similar entities) and all federal, state, foreign
and local taxes required to be accrued as a liability as a consequence of such
Asset Disposition;

 

(2) all
payments made by such Person or its Restricted Subsidiaries on any Indebtedness
which is secured by such assets in accordance with the terms of any Lien

 

E-50

EXHIBIT
4.35 (continued)

upon or
with respect to such assets or which must by the terms of such Lien, or in order
to obtain a necessary consent to such Asset Disposition or by applicable law, be
repaid out of the proceeds from such Asset Disposition;

 

(3) all
payments made with respect to liabilities associated with the assets which are
the subject of the Asset Disposition, including, without limitation, trade
payables and other accrued liabilities;

 

(4) appropriate
amounts to be provided by such Person or any Restricted Subsidiary thereof, as
the case may be, as a reserve in accordance with GAAP against any liabilities
associated with such assets and retained by such Person or any Restricted
Subsidiary thereof, as the case may be, after such Asset Disposition, including,
without limitation, liabilities under any indemnification obligations and
severance and other employee termination costs associated with such Asset
Disposition, until such time as such amounts are no longer reserved or such
reserve is no longer necessary (at which time any remaining amounts will become
Net Available Proceeds to be allocated in accordance with the provisions of
paragraph (c) of
Section
3.13 herein;
and

 

(5) all
distributions and other payments made to minority interest holders, if any, in
Restricted Subsidiaries of such Person or joint ventures as a result of such
Asset Disposition.

 

“Net
Cash Proceeds” with
respect to any issuance or sale of Capital Stock, means the cash proceeds of
such issuance or sale net of attorneys’ fees, accountants’ fees, underwriters’
or placement agents’ fees, listing fees, discounts or commissions and brokerage,
consultant and other fees and charges actually incurred in connection with such
issuance or sale and net of taxes paid or payable as a result of such issuance
or sale (after taking into account any available tax credit or deductions and
any tax sharing arrangements).

 

“NFC” means
Navistar Financial Corporation, a Delaware corporation, or a successor
Person.

 

“Non-U.S.
Person” means a
person who is not a U.S. person, as defined in Regulation S.

 

“Obligations” means
any principal, premiums, interest, penalties, fees, indemnifications,
reimbursements, damages and other liabilities payable under the documentation
governing any indebtedness.

 

“Offer
to Purchase” means a
written offer (the “Offer”) sent
by the Company by first class mail, postage prepaid, to each Holder at its
address appearing in the register for the Securities on the date of the Offer,
offering to purchase up to the principal amount of the Securities in such Offer
at the purchase price specified in such Offer (as determined pursuant to this
Indenture). Unless otherwise required by applicable law, the Offer shall specify
an expiration date (the “Expiration
Date”) of the
Offer to Purchase which shall be not less than 30 days nor more than
60 days after the date of such Offer and a settlement date (the
“Purchase
Date”) for
purchase of such Securities within five Business Days after the Expiration Date.
The 

 

E-51

EXHIBIT
4.35 (continued)

Company
shall notify the Trustee at least 15 Business Days (or such shorter period as is
acceptable to such Trustee) prior to the mailing of the Offer of the Company’s
obligation to make an Offer to Purchase, and the Offer shall be mailed by the
Company or, at the Company’s request, by the Trustee in the name and at the
expense of the Company. The Offer shall contain all the information required by
applicable law to be included therein. The Offer shall contain all instructions
and materials necessary to enable such Holders to tender such Securities
pursuant to the Offer to Purchase. The Offer shall also state:

 

(1) the
section of this Indenture pursuant to which the Offer to Purchase is being
made;

 

(2) the
Expiration Date and the Purchase Date;

 

(3) the
aggregate principal amount of the outstanding Securities offered to be purchased
by the Company pursuant to the Offer to Purchase (including, if less than 100%,
the manner by which such amount has been determined pursuant to Section
3.13 of this
Indenture) (the “Purchase
Amount”);

 

(4) the
purchase price to be paid by the Company for each $1,000 aggregate principal
amount of Securities accepted for payment (as specified pursuant to this
Indenture) (the “Purchase
Price”);

 

(5) that the
Holder may tender all or any portion of the Securities registered in the name of
such Holder and that any portion of a Security tendered must be tendered in an
integral multiple of $1,000 principal amount;

 

(6) the place
or places where Securities are to be surrendered for tender pursuant to the
Offer to Purchase;

 

(7) that
interest on any Security not tendered or tendered but not purchased by the
Company pursuant to the Offer to Purchase will continue to accrue;

 

(8) that on
the Purchase Date the Purchase Price will become due and payable upon each
Security being accepted for payment pursuant to the Offer to Purchase and that
interest thereon shall cease to accrue on and after the Purchase
Date;

 

(9) that each
Holder electing to tender all or any portion of a Security pursuant to the Offer
to Purchase will be required to surrender such Security at the place or places
specified in the Offer prior to the close of business on the Expiration Date
(such Security being, if the Company or the Trustee so requires, duly endorsed
by, or accompanied by 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);

 

(10) that
Holders will be entitled to withdraw all or any portion of Securities tendered
if the Company (or its Paying Agent) receives, not later than the close of

 

E-52

EXHIBIT
4.35 (continued)

business
on the fifth Business Day next preceding the Expiration Date, a telegram, telex,
facsimile transmission or letter setting forth the name of the Holder, the
principal amount of the Securities the Holder tendered, the certificate number
of the Security the Holder tendered and a statement that such Holder is
withdrawing all or a portion of his tender;

 

(11) that
(I) if Securities in an aggregate principal amount less than or equal to
the Purchase Amount are duly tendered and not withdrawn pursuant to the Offer to
Purchase, the Company shall purchase all such Securities and (II) if
Securities in an aggregate principal amount in excess of the Purchase Amount are
tendered and not withdrawn pursuant to the Offer to Purchase, the Company shall
purchase Securities having an aggregate principal amount equal to the Purchase
Amount on a pro rata basis (with such adjustments as may be deemed appropriate
so that only Securities in denominations of $1,000 or integral multiples thereof
shall be purchased); and

 

(12) that in
the case of any Holder whose Security is purchased only in part, the Company
shall execute, and the Trustee shall authenticate and deliver to the Holder of
such Security without service charge, a new Security or Securities of any
authorized denomination as requested by such Holder, in all aggregate principal
amount equal to and in exchange for the unpurchased portion of the Security or
Securities so tendered.

 

An Offer
to Purchase shall be governed by and effected in accordance with the provisions
above pertaining to any Offer.

 

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

 

“Officers’
Certificate,” when
used with respect to the Company, means a certificate signed by the Chairman of
the Board, the President, the Chief Financial Officer, any Executive Vice
President, Senior Vice President or Vice President, the Treasurer, any Assistant
Treasurer or the Controller of the Company.

 

“144A
Global Security” means a
Global Security in the form of Exhibit
A hereto
bearing the Global Security Legend and the Private Placement Legend and
deposited with or on behalf of, and registered in the name of, the Depositary or
its nominee that will be issued in a denomination equal to the outstanding
principal amount of the Securities sold in reliance on Rule 144A.

 

“Opinion
of Counsel” means a
written opinion from legal counsel. Such other counsel may be an employee of or
counsel to the Company.

 

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

 

E-53

EXHIBIT
4.35 (continued)

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

 

(2) Securities,
or portions thereof, for whose payment or redemption money or Government
Obligations in the necessary amount has been theretofore deposited with the
Trustee or any Paying Agent (other than the Company) in trust or set aside and
segregated in trust (if the Company shall act as its own Paying Agent) for the
Holders of such Securities; provided that, if
such Securities are to be redeemed, notice of such redemption has been duly
given pursuant to this Indenture or provisions therefor satisfactory to the
Trustee have been made;

 

(3) Securities,
except to the extent provided in Section
8.4 and
Section
8.5 herein,
with respect to which the Company has effected defeasance and/or covenant
defeasance as provided in Article
VIII herein;
and

 

(4) Securities
which have been paid pursuant to Section
2.12 herein
or in exchange for or in lieu of which other Securities have been authenticated
and delivered pursuant to this Indenture, other than any such Securities in
respect of which there shall have been presented to the Trustee proof
satisfactory to it that such Securities are held by a bona fide purchaser in
whose hands such Securities are valid obligations of the Company; provided,
however, that in
determining whether the Holders of the requisite principal amount of the
Outstanding Securities have given any request, demand, authorization, direction,
notice, consent or waiver hereunder, or whether sufficient funds are available
for redemption or for any other purpose and for the purpose of making the
calculations required by Section 313 of the Trust Indenture Act, Securities
owned by the Company or any other obligor upon the Securities or any Affiliate
of the Company or of such other obligor shall be disregarded and deemed not to
be Outstanding, except that, in determining whether the Trustee shall be
protected in making such calculation or in relying upon any such request,
demand, authorization, direction, notice, consent or waiver, only Securities
which a Responsible Officer of the Trustee actually knows to be so owned shall
be so disregarded. Securities so owned which have been pledged in good faith may
be regarded as Outstanding if the pledgee establishes to the satisfaction of the
Trustee the pledgee’s right so to act with respect to such Securities and that
the pledgee is not the Company or any other obligor upon the Securities or any
Affiliate of the Company or of such other obligor.

 

“Participant” means,
with respect to DTC, a Person who has an account with DTC.

 

“Paying
Agent” has the
meaning provided in Section
2.3 herein,
except that, for the purposes of Article
VIII, the
Paying Agent shall not be the Company or a Subsidiary of the Company or an
Affiliate of any of them.

 

“Permitted
Investments”
means:

 

(1) Investments
in Cash Equivalents;

 

(2) guarantees
otherwise permitted by the terms of this Indenture;

 

E-54

EXHIBIT
4.35 (continued)

(3) any
Investment by the Company or any Restricted Subsidiary in a Securitization
Subsidiary;

 

(4) deposits,
including interest-bearing deposits, maintained in the ordinary course of
business in banks;

 

(5) any
acquisition of the Capital Stock of any Person and any Investment in another
Person if as a result of such Investment such other Person is merged with or
consolidated into, or transfers or conveys all or substantially all of its
assets to, the Company or a Restricted Subsidiary of the Company; provided, that
after giving effect to any such acquisition or investment such Person shall
become a Restricted Subsidiary of the Company or another Restricted Subsidiary
of the Company;

 

(6) trade
receivables and prepaid expenses, in each case arising in the ordinary course of
business; provided, that
such receivables and prepaid expenses would be recorded as assets of such Person
in accordance with GAAP;

 

(7) endorsements
for collection or deposit in the ordinary course of business by such Person of
bank drafts and similar negotiable instruments of such other Person received as
payment for ordinary course of business trade receivables;

 

(8) any
interest swap or hedging obligation with an unaffiliated Person otherwise
permitted by this Indenture (including, without limitation, any Currency
Agreement, Commodity Agreement and any Interest Rate Protection Agreement
otherwise permitted by this Indenture);

 

(9) Investments
received as consideration for an Asset Disposition in compliance with
Section
3.13
herein;

 

(10) Investments
for which the sole consideration provided is Qualified Capital Stock of the
Company; provided, that
the issuance of such Qualified Capital Stock is not included in the calculation
set forth in clause (iii) of the
first paragraph of Section
3.12
herein;

 

(11) loans and
advances to employees made in the ordinary course of business in an aggregate
amount not to exceed $10.0 million at any one time
outstanding;

 

(12) Investments
outstanding on the Issue Date;

 

(13) Investments
in the Company or a Restricted Subsidiary;

 

(14) Investments
in securities of trade creditors, suppliers or customers received pursuant to
any plan of reorganization, restructuring, workout or similar arrangement of
such trade creditor, supplier or customer or upon the compromise of any debt
created in the ordinary course of business owning to the Company or a
Subsidiary, whether through litigation, arbitration or otherwise;

 

E-55

EXHIBIT
4.35 (continued)

(15) Investments
in any Person after the Issue Date having an aggregate fair market value
(measured on the date each Investment was made without giving effect to
subsequent changes in value), when taken together with all other Investments
made pursuant to this clause (15) that are at that time outstanding not to
exceed the greater of (i) $75.0 million or (ii) 2.0% of
Consolidated Net Tangible Assets;

 

(16) Investments
in publicly traded equity or publicly traded Investment Grade debt obligations
issued by a corporation (other than the Company or an affiliate of the Company)
organized under the laws of any State of the United States of America and
subject to the reporting requirements of Section 13 or 15(d) of the
Exchange Act in an aggregate amount not in excess of $100.0 million at any
one time outstanding; and

 

(17) Investments
in Navistar Financial Corporation, Arrendadora Financiera Navistar S.A. de C.V.,
Servicios Financieros Navistar S.A. de C.V., Servicios Financieros NFC, S.A. de
C.V. or Navistar Commercial, S.A. de C.V. having an aggregate fair market value
(measured on the date each Investment was made without giving effect to
subsequent changes in value), when taken together with all other Investments
made pursuant to this clause (17) that are at that time outstanding not to
exceed $100.0 million.

 

“Permitted
Joint Venture” means
any Person which is, directly or indirectly, through its subsidiaries or
otherwise, engaged principally in any business in which the Company is engaged,
or a reasonably related business, and the Capital Stock of which is owned by the
Company or a Restricted Subsidiary and one or more Persons other than the
Company or any affiliate of the Company.

 

“Permitted
Liens”
mean:

 

(1) Liens for
taxes, assessments and governmental charges (other than any Lien imposed by the
Employee Retirement Income Security Act of 1974, as amended) that are not yet
delinquent or are being contested in good faith by appropriate proceedings
promptly instituted and diligently conducted and for which adequate reserves
have been established or other provisions have been made in accordance with
generally accepted accounting principles;

 

(2) statutory
mechanics’, workmen’s, materialmen’s, operators’ or similar Liens imposed by law
and arising in the ordinary course of business for sums which are not yet due or
are being contested in good faith by appropriate proceedings promptly instituted
and diligently conducted and for which adequate reserves have been established
or other provisions have been made in accordance with generally accepted
accounting principles;

 

(3) minor
imperfections of, or encumbrances on, title that do not impair the value of
property for its intended use;

 

(4) Liens
(other than any Lien under the Employee Retirement Income Security Act of 1974,
as amended) incurred or deposits made in the ordinary course of 

 

E-56

EXHIBIT
4.35 (continued)

business
in connection with workers’ compensation, unemployment insurance and other types
of social security;

 

(5) Liens
incurred or deposits made to secure the performance of tenders, bids, leases,
statutory or regulatory obligations, bankers’ acceptances, surety and appeal
bonds, government contracts, performance and return of money bonds and other
obligations of a similar nature incurred in the ordinary course of business
(exclusive of obligations for the payment of borrowed money);

 

(6) easements,
rights-of-way, municipal and zoning ordinances and similar charges,
encumbrances, title defects or other irregularities that do not materially
interfere with the ordinary course of business of the Company or of any of its
Restricted Subsidiaries;

 

(7) Liens
(including extensions and renewals thereof) upon real or tangible personal
property acquired after the Issue Date; provided,
that

 

(a) such Lien
is created solely for the purpose of securing Indebtedness that is incurred in
accordance with this Indenture to finance the cost (including the cost of
improvement or construction) of the item of property or assets subject thereto
and such Lien is created prior to, at the time of or within 180 days after
the later of the acquisition, the completion of construction or the commencement
of full operation of such property,

 

(b) the
principal amount of the Indebtedness secured by such Lien does not exceed 100%
of such cost and

 

(c) any such
Lien shall not extend to or cover any property or assets of the Company or of
any Restricted Subsidiary of the Company other than such item of property or
assets and any improvements on such item;

 

(8) leases or
subleases granted to others that do not materially interfere with the ordinary
course of business of the Company or of any Restricted Subsidiary of the
Company;

 

(9) any
interest or title of a lessor in the property subject to any Capitalized Lease
Obligation; provided that any
transaction related thereto otherwise complies with this Indenture;

 

(10) Liens
arising from filing Uniform Commercial Code financing statements regarding
leases;

 

(11) Liens
arising from the rendering of a final judgment or order against the Company or
any Restricted Subsidiary of the Company that does not give rise to an Event of
Default;

 

E-57

EXHIBIT
4.35 (continued)

(12) Liens
securing reimbursement obligations with respect to letters of credit incurred in
accordance with this Indenture that encumber documents and other property
relating to such letters of credit and the products and proceeds
thereof;

 

(13) Liens in
favor of the Trustee arising under this Indenture;

 

(14) any lien
existing on property, shares of stock or Indebtedness of a Person at the time
such Person becomes a Restricted Subsidiary of the Company or is merged with or
consolidated into the Company or a Restricted Subsidiary of the Company or at
the time of sale, lease or other disposition of the properties of any Person as
an entirety or substantially as an entirety to the Company or any Restricted
Subsidiary of the Company;

 

(15) Liens on
property of any Subsidiary of the Company to secure Indebtedness for borrowed
money owed to the Company or to another Restricted Subsidiary of the
Company;

 

(16) Liens in
favor of the Company;

 

(17) Liens
existing on the Issue Date;

 

(18) Liens in
favor of custom and revenue authorities arising as a matter of law to secure
payment of nondelinquent customs duties in connection with the importation of
goods;

 

(19) Liens
encumbering customary initial deposits and margin deposits, and other Liens
incurred in the ordinary course of business that are within the general
parameters customary in the industry, in each case securing Indebtedness under
any Interest Rate Protection Agreement;

 

(20) Liens
encumbering deposits made in the ordinary course of business to secure
nondelinquent obligations arising from statutory, regulatory, contractual or
warranty requirements of the Company or its Restricted Subsidiaries for which a
reserve or other appropriate provision, if any, as shall be required by GAAP
shall have been made; and

 

(21) Liens
arising out of consignment or similar arrangements for the sale of goods entered
into by the Company or any Restricted Subsidiary in the ordinary course of
business in accordance with industry practice.

 

“Person” means
any individual, corporation, partnership, joint venture, trust, estate,
unincorporated organization, or government or any agency or political
subdivision thereof.

 

“Place
of Payment,” when
used with respect to the Securities, means the place or places where the
principal of, premium, if any, and interest, if any, and any other payments on
such Securities are payable as specified as contemplated by Section
2.3
herein.

 

E-58

EXHIBIT
4.35 (continued)

“Plan
of Liquidation” means,
with respect to any Person, a plan (including by operation of law) that provides
for, contemplates or the effectuation of which is preceded or accompanied by
(whether or not substantially contemporaneously):

 

(1) the sale,
lease, conveyance or other disposition of all or substantially all of the assets
of the referent Person; and

 

(2) the
distribution of all or substantially all of the proceeds of such sale, lease,
conveyance or other disposition and all or substantially all of the remaining
assets of the referent Person to holders of Capital Stock of the referent
Person.

 

“Preferred
Stock” means,
as applied to the Capital Stock of any Person, the Capital Stock of such Person
(other than the Common Stock of such Person) of any class or classes (however
designated) that ranks prior, as to the payment of dividends or as to the
distribution of assets upon any voluntary or involuntary liquidation,
dissolution or winding-up of such Person, to shares of Capital Stock of any
other class of such Person.

 

“Private
Placement Legend” means
the legend set forth in Section
2.6(g)(i) to be
placed on all Securities issued hereunder except where otherwise permitted by
the provisions of this Indenture.

 

“Public
Equity Offering” means a
public offering for cash by the Company of its Qualified Capital Stock, other
than public offerings with respect to the Company’s Qualified Capital Stock
registered on Forms S-4 or S-8.

 

“QIB” means
any “qualified institutional buyer” (as defined in Rule 144A under the
Securities Act).

 

“Qualified
Capital Stock” means,
with respect to any Person, any Capital Stock of such Person that is not
Disqualified Capital Stock or convertible into or exchangeable or exercisable
for Disqualified Capital Stock.

 

“Qualified
Securitization Transaction” means
any transaction or series of transactions that have been or may be entered into
by any of the Restricted Subsidiaries of the Company in connection with or
reasonably related to a transaction or series of transactions in which any of
the Restricted Subsidiaries of the Company may sell, convey or otherwise
transfer to

 

(1) a
Securitization Subsidiary or

 

(2) any other
Person, or may grant a security interest in, any Receivables or interests
therein secured by the merchandise or services financed thereby (whether such
Receivables are then existing or arising in the future) of any of the Restricted
Subsidiaries of the Company, and any assets related thereto including, without
limitation, all security or ownership interests in merchandise or services
financed thereby, the proceeds of such Receivables, and other assets which are
customarily sold or in respect of which security interests are customarily
granted in connection with securitization transactions involving such
assets.

 

E-59

EXHIBIT
4.35 (continued)

“Rating
Agency” means
each of (1) S&P and (2) Moody’s.

 

“Receivables” means
any right of payment from or on behalf of any obligor, whether constituting an
account, chattel paper, instrument, general intangible or otherwise, arising
from the financing by any Restricted Subsidiary of the Company of merchandise or
services, and monies due thereunder, security or ownership interests in the
merchandise and services financed thereby, records related thereto, and the
right to payment of any interest or finance charges and other obligations with
respect thereto, proceeds from claims on insurance policies related thereto, any
other proceeds related thereto, and any other related rights.

 

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

 

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

 

“Registration
Rights Agreement” means
the Exchange and Registration Rights Agreement, dated as of March 2, 2005, as
amended from time to time, among the Company, the Guarantor, Banc of America
Securities LLC, Citigroup Global Markets Inc., J.P. Morgan Securities Inc.,
Credit Suisse First Boston LLC, Scotia Capital (USA) Inc., BNY Capital Markets,
Inc. and RBC Capital Markets Corporation and, with respect to any Additional
Securities, one or more substantially similar registration rights agreements
between the Company and the other parties thereto, as such agreement(s) may be
amended from time to time.

 

“Regulation
S Global Security” means a
Global Security bearing the Global Security Legend and the Private Placement
Legend and deposited with or on behalf of and registered in the name of the
Depositary or its nominee, issued in a denomination equal to the outstanding
principal amount of the Securities resold in reliance on Rule 904 of Regulation
S.

 

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

 

“Restricted
Definitive Security” means a
Definitive Security bearing the Private Placement Legend. 

 

“Restricted
Global Security” means a
Global Security bearing the Private Placement Legend.

 

“Restricted
Period” means
the 40-day distribution compliance period within the meaning of Regulation S of
the Securities Act.

 

E-60

EXHIBIT
4.35 (continued)

“Restricted
Securities” means,
individually and collectively, each of the Restricted Definitive Securities and
Restricted Global Securities, issued in accordance with certain sections of this
Indenture.

 

“Restricted
Subsidiary” means
any Subsidiary of the Company that is not an Unrestricted
Subsidiary.

 

“Rule
144” means
Rule 144 promulgated under the Securities Act.

 

“Rule
144A” means
Rule 144A promulgated under the Securities Act.

 

“Rule
903” means
Rule 903 promulgated under the Securities Act.

 

“Rule
904” means
Rule 904 promulgated the Securities Act. 

 

“S&P” means
Standard & Poor’s Ratings Services, a division of The McGraw-Hill Companies,
Inc., and its successors.

 

“Sale/Lease-back
Transaction” means
an arrangement relating to property now owned or hereafter acquired whereby the
Company or a Restricted Subsidiary transfers such property to a Person and the
Company or a Restricted Subsidiary leases it from such Person.

 

“Securities” means
the collective reference to the Initial Securities, any Additional Securities
and Exchange Securities.

 

“Securities
Act” means
the Securities Act of 1933, as amended.

 

“Securitization
Subsidiary” means a
Subsidiary of the Company which engages in no activities other than those
reasonably related to or in connection with the entering into of securitization
transactions and which is designated by the Board of Directors of the Company
(as provided below) as a Securitization Subsidiary:

 

(1) no
portion of the Indebtedness or any other obligations (contingent or otherwise)
of which

 

(a) is
guaranteed by the Company or any Restricted Subsidiary of the
Company,

 

(b) is
recourse to or obligates the Company or any Restricted Subsidiary of the Company
in any way other than pursuant to representations, warranties and covenants
(including those related to servicing) entered into in the ordinary course of
business in connection with a Qualified Securitization Transaction
or

 

(c) subjects
any property or asset of the Company or any Restricted Subsidiary of the
Company, directly or indirectly, contingently or otherwise, to any Lien or to
the satisfaction thereof, other than pursuant to representations, 

 

E-61

EXHIBIT
4.35 (continued)

warranties
and covenants (including those related to servicing) entered into in the
ordinary course of business in connection with a Qualified Securitization
Transaction;

 

(2) with
which neither the Company nor any Restricted Subsidiary of the
Company

 

(a) provides
any credit support or

 

(b) has any
contract, agreement, arrangement or understanding other than on terms that are
fair and reasonable and that are no less favorable to the Company or such
Restricted Subsidiary than could be obtained from an unrelated Person (other
than, in the case of subclauses (a) and (b) of this clause (2),
representations, warranties and covenants (including those relating to
servicing) entered into in the ordinary course of business in connection with a
Qualified Securitization Transaction and intercompany notes relating to the sale
of Receivables to such Securitization Subsidiary); and

 

(3) with
which neither the Company nor any Restricted Subsidiary of the Company has any
obligation to maintain or preserve such Subsidiary’s financial condition or to
cause such Subsidiary to achieve certain levels of operating results. Any such
designation by the Board of Directors of the Company shall be evidenced to the
Trustee by filing with the Trustee a certified copy of the resolutions of the
Board of Directors of the Company giving effect to such
designation.

 

“Security
Register” means
the register of Securities, maintained by the Registrar, pursuant to
Section
2.3
herein.

 

“71⁄2%
Notes Issue Date” means
June 2, 2004, which is the date the Company issued its 71⁄2% Senior Notes due 2011
in an aggregate principal amount of $250.0 million.

 

“Shelf
Registration Statement” shall
have the meaning set forth in the Registration Rights Agreement.

 

“Stated
Maturity” means,
with respect to any security or Indebtedness of a Person, the date specified
therein as the fixed date on which any principal of such security or
Indebtedness is due and payable, including pursuant to any mandatory redemption
provision (but excluding any provision providing for the repurchase thereof at
the option of the holder thereof).

 

“Subsidiary” of any
Person means

 

(1) a
corporation a majority of whose Voting Stock is at the time, directly or
indirectly, owned by such Person, by one or more Restricted Subsidiaries of such
Person or by such Person and one or more Restricted Subsidiaries of such Person
or

 

(2) any other
Person (other than a trust formed in connection with a Qualified Securitization
Transaction) in which such Person, a Restricted Subsidiary of such Person

 

E-62

EXHIBIT
4.35 (continued)

or such
Person and one or more Restricted Subsidiaries of such Person, directly or
indirectly, at the date of determination thereof, have at least a majority
ownership interest.

 

“Subsidiary
Guarantee” means
the International Guarantee and each additional guarantee of the Securities by a
Restricted Subsidiary of the Company pursuant to Article
X
herein.

 

“Subsidiary
Guarantor” means
the Guarantor and each Restricted Subsidiary of the Company that becomes a
guarantor of the Securities pursuant to Article
X
herein.

 

“Support
Agreement” means
the Parent’s Side Agreement dated as of December 12, 2000, between the
Company and International Truck and Engine Corporation, formerly known as
Navistar International Transportation Corp., as it may be amended, modified,
supplemented or restricted from time to time.

 

“Tax
Allocation Agreement” means
the Tax Allocation Agreement among the Company and its subsidiaries, effective
as of October 1, 1981, as it has been and may be amended and/or
supplemented from time to time. 

 

“TIA” or
“Trust
Indenture Act” means
the Trust Indenture Act of 1939 as in effect on the date of this Indenture,
except as provided in Section
9.3
herein.

 

“Trustee” means
the party named as such in the first paragraph of this Indenture until a
successor Trustee replaces it pursuant to the applicable provisions of this
Indenture, and thereafter means such successor Trustee.

 

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

 

“U.S.
Paying Agent” means
The Bank of New York Trust Company, N.A. and any successor U.S. Paying
Agent.

 

“Unlegended
Regulation S Global Security” means a
permanent Global Security in the form of Exhibit
A hereto
bearing the Global Security Legend, deposited with or on behalf of and
registered in the name of the Depositary or its nominee and issued upon
expiration of the Restricted Period.

 

“Unrestricted
Definitive Security” means
one or more Definitive Securities that do not bear and are not required to bear
the Private Placement Legend.

 

“Unrestricted
Global Security” means a
permanent Global Security in the form of Exhibit
A attached
hereto that bears the Global Security Legend and that has the “Schedule of
Exchanges of Interests in the Global Securities” attached thereto, and that is
deposited with or on behalf of and registered in the name of the Depositary,
representing a series of Securities that do not bear the Private Placement
Legend.

 

“Unrestricted
Securities” means
the Securities that do not and are not required to bear the Private Placement
Legend.

 

E-63

EXHIBIT
4.35 (continued)

“Unrestricted
Subsidiary”
means:

 

(1) each of
NFC, Arrendadora Financiera Navistar S.A. de C.V., Servicios Financieros
Navistar S.A. de C.V., Servicios Financieros NFC, S.A. de C.V., Camiones y
Motores Navistar S.A. de R.L. de C.V., Harbour Assurance Company of Bermuda
Limited, Navistar Acceptance Corporation Limited, Navistar Comercial, S.A. de
C.V.; International Truck and Engine Corporation US Holding Company, LLC;
International Truck and Engine Corporation Cayman Islands Holding Corporation;
International Truck and Engine Investments Corporation, all the DealCor
Subsidiaries, and their respective Subsidiaries until such time as it is
designated a Restricted Subsidiary pursuant to the second succeeding
sentence;

 

(2) any
Subsidiary of the Company (other than the Guarantor as long as the International
Guarantee is in effect) that at the time of determination shall be designated an
Unrestricted Subsidiary by the Board of Directors in the manner provided below;
and

 

(3) any
Subsidiary of an Unrestricted Subsidiary.

 

The Board
of Directors may designate any Subsidiary of the Company (including any newly
acquired or newly formed Subsidiary) to be an Unrestricted Subsidiary unless
such Subsidiary or any of its Subsidiaries owns any Capital Stock of, or holds
any Lien on any property of, the Company or any other Restricted Subsidiary of
the Company; provided, that
either

 

(1) the
Subsidiary to be so designated has total assets of $100,000 or less
or

 

(2) if such
Subsidiary has assets greater than $100,000, such designation would be permitted
under Section
3.12
herein.

 

The Board
of Directors may designate any Unrestricted Subsidiary to be a Restricted
Subsidiary; provided, that
immediately after giving effect to such designation (a) if such
Unrestricted Subsidiary at such time has Indebtedness, the Company could incur
$1.00 of additional Indebtedness under paragraph (a) of
Section
3.10 herein
and (b) no Default shall have occurred and be continuing. Any such
designation by the Board of Directors shall be evidenced by the Company to the
Trustee by promptly filing with the Trustee a copy of the board resolution
giving effect to such designation and an Officers’ Certificate certifying that
such designation complied with the foregoing provisions.

 

“Voting
Stock” means,
with respect to any Person, securities of any class or classes of Capital Stock
in such Person entitling the holders thereof (whether at all times or only so
long as no senior class of stock has voting power by reason of any contingency)
to vote in the election of members of the Board of Directors or other governing
body of such Person.

 

E-64

EXHIBIT
4.35 (continued)

Section
1.2. Other
Definitions.

 

	
      Term
	
      Defined
      in Section

	
      

    	
      

    
	
      “Affiliate
      Transactions”
	
      3.16(a)(iv)

	
      “Asset
      Sale Offer Trigger Date”
	
      3.13

	
      “Authentication
      Order”
	
      2.2

	
      “Bankruptcy
      Law”
	
      6.1

	
      “Benefited
      Party”
	
      10.1(c)(i)

	
      “Change
      of Control Offer”
	
      5.9

	
      “Change
      of Control Payment Date”
	
      5.9

	
      “Custodian”
	
      6.1

	
      “Defaulted
      Interest”
	
      2.12

	
      “Legal
      Holiday”
	
      11.8

	
      “Paying
      Agent”
	
      2.3

	
      “Registrar”
	
      2.3

	
      “Regulation
      S”
	
      2.1(c)

	
      “Restricted
      Payment”
	
      3.12

	
      “Security
      Register”
	
      2.3

	
      “Special
      Record Date”
	
      2.12(a)

	
      “Standard
      No. 76”
	
      8.8

	
      “Unutilized
      Net Available Proceeds”
	
      3.13

Section
1.3. Incorporation
by Reference of Trust Indenture Act. This
Indenture is subject to the mandatory provisions of the TIA which are
incorporated by reference in and made a part of this Indenture. The following
TIA terms have the following meanings:

 

“indenture
securities” means the Securities.

 

“indenture
security holder” means a Securityholder.

 

“indenture
to be qualified” means this Indenture.

 

“indenture
trustee” or “institutional trustee” means the Trustee.

 

“obligor”
on the indenture securities means the Company and any other obligor on the
indenture securities.

 

All other
TIA terms used in this Indenture that are defined by the TIA, defined in the TIA
by reference to another statute or defined by the Commission rules have the
meanings assigned to them by such definitions.

 

Section
1.4. Rules of
Construction. For all
purposes of this Indenture, except as otherwise expressly provided or unless the
context otherwise requires:

 

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

 

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

 

E-65

EXHIBIT
4.35 (continued)

(c) “or” is
not exclusive;

 

(d) “including”
means including without limitation;

 

(e) words in
the singular include the plural and words in the plural include the singular;
and

 

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

 

ARTICLE
II

 

THE
SECURITIES

 

Section
2.1. Form,
Dating and Terms.

 

(a) General. The
Securities shall be dated the date of their authentication. The Securities and
the Trustee’s certificate of authentication shall be substantially in the form
of Exhibit
A hereto.
The Securities may have notations, legends or endorsements required by law,
stock exchange rule or usage. Each Security shall be dated the date of its
authentication. The Securities shall be in denominations of $1,000 and integral
multiples thereof. In addition, the Company may issue, from time to time in
accordance with the provisions of this Indenture, an unlimited amount of
Additional Securities as a new series of Securities to be issued under this
Indenture.

 

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

 

(b) Global
Securities.
Securities issued in global form shall be substantially in the form of
Exhibit
A attached
hereto (including the Global Security Legend thereon and the “Schedule of
Exchanges of Interests in the Global Security” attached thereto). Securities
issued in definitive form shall be substantially in the form of Exhibit
A attached
hereto (but without the Global Security Legend thereon and without the “Schedule
of Exchanges of Interests in the Global Security” attached thereto). Each Global
Security shall represent such amount of the outstanding Securities as shall be
specified therein and each shall provide that it shall represent the aggregate
principal amount of outstanding Securities from time to time endorsed thereon
and that the aggregate principal amount of outstanding Securities represented
thereby may from time to time be reduced or increased, as appropriate, to
reflect exchanges and redemptions. Any endorsement of a Global Security to
reflect the amount of any increase or decrease in the aggregate principal amount
of outstanding Securities represented thereby shall be made by the Trustee, in
accordance with instructions given by the Holder thereof as required by
Section
2.6
hereof.

 

E-66

EXHIBIT
4.35 (continued)

(c) Regulation
S Global Securities.
Securities offered and sold in reliance on Regulation S under the
Securities Act (“Regulation
S”) shall
be issued initially in the form of the Legended Regulation S Global
Security, which shall be deposited on behalf of the purchasers of the Securities
represented thereby with the Trustee, as custodian for DTC in New York, New
York, and registered in the name of the Depositary or the nominee of the
Depositary for the accounts of designated agents holding on behalf of Euroclear
or Clearstream, duly executed by the Company and authenticated by the Trustee as
hereinafter provided. Following the termination of the Restricted Period,
beneficial interests in the Legended Regulation S Global Security shall be
exchanged for beneficial interests in Unlegended Regulation S Global
Securities pursuant to the Applicable Procedures. Simultaneously with the
authentication of the Unlegended Regulation S Global Securities, the
Trustee shall cancel the Legended Regulation S Global Security. The
aggregate principal amount of the Regulation S Global Securities may from
time to time be increased or decreased by adjustments made on the records of the
Trustee and the Depositary or its nominee, as the case may be, in connection
with transfers of interest as hereinafter provided.

 

(d) Euroclear
and Clearstream Procedures Applicable. The
provisions of the “Operating Procedures of the Euroclear System” and “Terms and
Conditions Governing Use of Euroclear” and the “General Terms and Conditions of
Clearstream Banking” and “Customer Handbook” of Clearstream shall be applicable
to transfers of beneficial interests in the Regulation S Global Securities that
are held by Participants through Euroclear or Clearstream.

 

Section
2.2. Execution
and Authentication. One
Officer shall sign the Securities for the Company by manual or facsimile
signature. If an Officer whose signature is on a Security no longer holds that
office at the time the Trustee authenticates the Security, the Security shall be
valid nevertheless, after giving effect to any exchange of Initial Securities
for Exchange Securities.

 

A
Security shall not be valid until an authorized signatory of the Trustee
manually authenticates the Security. The Trustee shall, upon a written order of
the Company signed by one Officer (an “Authentication
Order”),
authenticate Securities for original issue on the date hereof in the aggregate
principal amount of $400 million. The signature of the Trustee on a Security
shall be conclusive evidence that such Security has been duly and validly
authenticated and issued under this Indenture.

 

At any
time and from time to time after the execution and delivery of this Indenture,
the Trustee shall authenticate and make available for delivery: (1) the Initial
Securities for issue on the Issue Date in an aggregate principal amount of
$400,000,000, (2) from time to time, the Additional Securities, and
(3) Exchange Securities for issue only in an Exchange Offer pursuant to the
Registration Rights Agreement, and only in exchange for the applicable Initial
Securities or the Additional Securities, as the case may be, of the same series
of an equal principal amount, in each case upon a Company Order. Such Company
Order shall specify the amount of the Securities to be authenticated and the
date on which the original issue of Securities are to be authenticated and
whether the Securities are to be Initial Securities, Additional Securities or
Exchange Securities.

 

E-67

EXHIBIT
4.35 (continued)

With
respect to any Additional Securities, the Company shall set forth in a
resolution of its Board of Directors and an Officers’ Certificate, the following
information:

 

(i) the
aggregate principal amount of such Additional Securities to be authenticated and
delivered pursuant to this Indenture; and

 

(ii) the issue
price and the issue date of the Additional Securities.

 

The
aggregate principal amount of Securities which may be authenticated and
delivered under this Indenture is unlimited. All Securities issued under this
Indenture (whether Initial Securities, Additional Securities or Exchange
Securities) will be treated as a single class for all purposes under this
Indenture, including, without limitation, waivers, amendments, redemptions and
offers to purchase.

 

In case
the Company, pursuant to Article
IV herein,
shall be consolidated or merged with or into any other Person or shall transfer
or lease all or substantially all of its assets to any Person, and the successor
Person formed by or surviving any such consolidation or any such merger, or to
which such transfer or lease shall have been made, shall have executed an
indenture supplemental hereto with the Trustee pursuant to Article
IV herein,
any of the Securities authenticated or delivered prior to such consolidation,
merger, conveyance, transfer or lease may, from time to time, at the request of
the successor Person, be exchanged for other Securities executed in the name of
the successor Person with such changes in phraseology and form as may be
appropriate, but otherwise in substance of like tenor as the Securities
surrendered for such exchange and of like principal amount; and the Trustee,
upon Company Order of the successor Person, shall authenticate and deliver
Securities as specified in such order for the purpose of such exchange. If
Securities shall at any time be authenticated and delivered in any new name of a
successor Person pursuant to this Section
2.2 herein
in exchange or substitution for or upon registration of transfer of any
Securities, such successor Person, at the option of the Holders but without
expense to them, shall provide for the exchange of all Securities at the time
Outstanding for Securities authenticated and delivered in such new
name.

 

Section
2.3. Registrar
and Paying Agent. The
Company shall maintain an office or agency where Securities may be presented for
registration of transfer or for exchange (the “Registrar”) and an office or
agency where Securities may be presented for payment (the “Paying Agent”). The
Registrar shall keep a register of the Securities and of their transfer and
exchange (the “Security Register”). The Company may have one or more
co-registrars and one or more additional paying agents. The term “Paying Agent”
includes any additional paying agent.

 

The
Company shall enter into an appropriate agency agreement with any Registrar,
Paying Agent or co-registrar not a party to this Indenture, which shall
incorporate the terms of the TIA. The agreement shall implement the provisions
of this 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 Registrar or Paying Agent, the Trustee shall act as such and shall be
entitled to appropriate compensation therefor pursuant to Section
7.9. The
Company or any wholly owned Subsidiary may act as Paying Agent, Registrar,
co-registrar or transfer agent.

 

E-68

EXHIBIT
4.35 (continued)

The
Company initially appoints the Trustee as the Paying Agent and Registrar in
connection with the Securities.

 

Section
2.4. Paying
Agent To Hold Money in Trust. Prior
to each due date of the principal of or interest on any Security, the Company
shall deposit with the Paying Agent a sum sufficient to pay such principal or
interest when due. The Company shall require each Paying Agent (other than the
Trustee) to agree in writing that such Paying Agent shall hold in trust for the
benefit of Securityholders or the Trustee all money held by such Paying Agent
for the payment of principal of or interest on the Securities and shall notify
the Trustee in writing of any default by the Company in making any such payment.
If the Company acts as Paying Agent, it shall segregate the money held by it as
Paying Agent and hold it as a separate trust fund. The Company at any time may
require a Paying Agent (other than the Trustee) to pay all money held by it to
the Trustee and to account for any funds disbursed by such Paying Agent. Upon
complying with this Section, the Paying Agent (if other than the Company) shall
have no further liability for the money delivered to the Trustee. Upon any
bankruptcy, reorganization or similar proceeding with respect to the Company,
the Trustee shall serve as Paying Agent for the Securities .

 

Section
2.5. Securityholder
Lists. The
Trustee shall preserve in as current a form as is reasonably practicable the
most recent list available to it of the names and addresses of Securityholders.
If the Trustee is not the Registrar, or to the extent otherwise required under
the TIA, the Company shall furnish to the Trustee, in writing at least seven
Business Days before each interest payment date and at such other times as the
Trustee may request in writing, a list in such form and as of such date as the
Trustee may reasonably require of the names and addresses of
Securityholders.

 

Section
2.6. Transfer
and Exchange and
Transfer and Exchange of Global Securities. A Global Security may not be
transferred as a whole except by the Depositary to a nominee of the Depositary,
by a nominee of the Depositary to the Depositary or to another nominee of the
Depositary, or by the Depositary or any such nominee to a successor Depositary
or a nominee of such successor Depositary. All Global Securities shall be
exchanged by the Company for Definitive Securities if (i) the Depositary (x)
notifies the Company that it is unwilling or unable to continue to act as
Depositary or (y) that it is no longer a clearing agency registered under the
Exchange Act and, in either case, a successor Depositary is not appointed by the
Company within 120 days after the date of such notice from the Depositary; (ii)
the Company in its sole discretion determines that the Global Securities (in
whole but not in part) should be exchanged for Definitive Securities and
delivers a written notice to such effect to the Trustee; provided that in
no event shall the Legended Regulation S Global Security be exchanged by the
Company for Definitive Securities on or prior to the expiration of the
Restricted Period; or (iii) there shall have occurred and be continuing a
Default or Event of Default with respect to the Securities. Upon the occurrence
of either of the preceding events in (i), (ii) or (iii) above, Definitive
Securities shall be issued in such names as the Depositary shall instruct the
Trustee. Global Securities also may be exchanged or replaced, in whole or in
part, as provided in Sections 2.9 and 2.10 hereof. Every Security authenticated
and delivered in exchange for, or in lieu of, a Global Security or any portion
thereof, pursuant to this Section 2.6 or Section 2.9 or 2.10 hereof, shall be
authenticated and delivered in the form of, and shall be, a Global Security. A
Global Security 

 

E-69

EXHIBIT
4.35 (continued)

may not
be exchanged for another Security other than as provided in this Section 2.6(a),
however, beneficial interests in a Global Security may be transferred and
exchanged as provided in Section 2.6(b), (d) or (f) hereof.

 

(b) Transfer
and Exchange of Beneficial Interests in the Global Securities. The
transfer and exchange of beneficial interests in the Global Securities shall be
effected through the Depositary, in accordance with the provisions of this
Indenture and the Applicable Procedures. Beneficial interests in the Restricted
Global Securities shall be subject to restrictions on transfer comparable to
those set forth herein to the extent required by the Securities Act. Transfers
of beneficial interests in the Global Securities also shall require compliance
with either subparagraph (i) or (ii) below, as applicable, as well as one or
more of the other following subparagraphs, as applicable:

 

(i) Transfer
of Beneficial Interests in the Same Global Security.
Beneficial interests in any Restricted Global Security may be transferred to
Persons who take delivery thereof in the form of a beneficial interest in the
same Restricted Global Security in accordance with the transfer restrictions set
forth in the Private Placement Legend. Beneficial interests in any Unrestricted
Global Security may be transferred to Persons who take delivery thereof in the
form of a beneficial interest in an Unrestricted Global Security. No written
orders or instructions shall be required to be delivered to the Registrar to
effect the transfers described in this Section
2.6(b)(i).

 

(ii) All
Other Transfers and Exchanges of Beneficial Interests in Global
Securities. In
connection with all transfers and exchanges of beneficial interests that are not
subject to Section
2.6(b)(i) above,
the transferor of such beneficial interest must deliver to the Registrar either
(A) (1) a written order from a Participant or an Indirect Participant given to
the Depositary in accordance with the Applicable Procedures directing the
Depositary to credit or cause to be credited a beneficial interest in another
Global Security in an amount equal to the beneficial interest to be transferred
or exchanged and (2) instructions given in accordance with the Applicable
Procedures containing information regarding the Participant account to be
credited with such increase or (B) (1) a written order from a Participant or an
Indirect Participant given to the Depositary in accordance with the Applicable
Procedures directing the Depositary to cause to be issued a Definitive Security
in an amount equal to the beneficial interest to be transferred or exchanged and
(2) instructions given by the Depositary to the Registrar containing information
regarding the Person in whose name such Definitive Security shall be registered
to effect the transfer or exchange referred to in (1) above; provided that in
no event shall Definitive Securities be issued upon the transfer or exchange of
beneficial interests in the Legended Regulation S Global Security on or prior to
the expiration of the Restricted Period. Upon consummation of an Exchange Offer
by the Company in accordance with Section
2.6(f) hereof,
the requirements of this Section
2.6(b)(ii) shall be
deemed to have been satisfied upon receipt by the Registrar of the instructions
contained in the Letter of Transmittal delivered by the Holder of such
beneficial interests in the Restricted Global Securities. Upon satisfaction of
all of the requirements for transfer or exchange of beneficial interests in
Global Securities 

 

E-70

EXHIBIT
4.35 (continued)

contained
in this Indenture and the Securities or otherwise applicable under the
Securities Act, the Trustee shall adjust the principal amount at maturity of the
relevant Global Securities pursuant to Section
2.6(h)
hereof.

 

(iii) Transfer
of Beneficial Interests to Another Restricted Global Security. A
beneficial interest in any Restricted Global Security may be transferred to a
Person who takes delivery thereof in the form of a beneficial interest in
another Restricted Global Security if the transfer complies with the
requirements of Section
2.6(b)(ii) above
and the Registrar receives the following:

 

(A) if the
transferee shall take delivery in the form of a beneficial interest in the 144A
Global Security, then the transferor must deliver a certificate in the form of
Exhibit
B hereto,
including the certifications in item (1) thereof; and

 

(B) if the
transferee shall take delivery in the form of a beneficial interest in a
Legended Regulation S Global Security, then the transferor must deliver a
certificate in the form of Exhibit
B hereto,
including the certifications in item (2) thereof.

 

(iv) Transfer
and Exchange of Beneficial Interests in a Restricted Global Security for
Beneficial Interests in the Unrestricted Global Security. A
beneficial interest in any Restricted Global Security may be exchanged by any
Holder thereof for a beneficial interest in an Unrestricted Global Security or
transferred to a Person who takes delivery thereof in the form of a beneficial
interest in an Unrestricted Global Security if the exchange or transfer complies
with the requirements of Section 2.6(b)(ii) above
and:

 

(A) such
exchange or transfer is effected pursuant to the Exchange Offer in accordance
with the Registration Rights Agreement and the Holder of the beneficial interest
to be transferred, in the case of an exchange, or the transferee, in the case of
a transfer, certifies in the applicable Letter of Transmittal that it is not (1)
a Person participating in the distribution of the Exchange Securities or (2) a
Person who is an affiliate (as defined in Rule 144) of the Company;

 

(B) such
transfer is effected pursuant to the Shelf Registration Statement in accordance
with the Registration Rights Agreement;

 

(C) such
transfer is effected by a Broker-Dealer pursuant to the Exchange Offer
Registration Statement in accordance with the Registration Rights Agreement;
or

 

(D) the
Registrar receives the following: 

 

(1) if the
Holder of such beneficial interest in a Restricted Global Security proposes to
exchange such beneficial interest for a beneficial interest in an Unrestricted
Global Security, a certificate from 

 

E-71

EXHIBIT
4.35 (continued)

such
Holder in the form of Exhibit
C hereto,
including the certifications in item (1)(a) thereof; or

 

(2) if the
Holder of such beneficial interest in a Restricted Global Security proposes to
transfer such beneficial interest to a Person who shall take delivery thereof in
the form of a beneficial interest in an Unrestricted Global Security, a
certificate from such Holder in the form of Exhibit
B hereto,
including the certifications in item (4) thereof;

 

and, in
each such case set forth in this subparagraph (D), if the Registrar so requests
or if the Applicable Procedures so require, an Opinion of Counsel in form
reasonably acceptable to the Registrar to the effect that such exchange or
transfer is in compliance with the Securities Act and that the restrictions on
transfer contained herein and in the Private Placement Legend are no longer
required in order to maintain compliance with the Securities Act. 

 

If any
such transfer is effected pursuant to subparagraph (B) or (D) above at a time
when an Unrestricted Global Security has not yet been issued, the Company shall
issue and, upon receipt of an Authentication Order in accordance with
Section
2.2 hereof,
the Trustee shall authenticate one or more Unrestricted Global Securities in an
aggregate principal amount equal to the aggregate principal amount of beneficial
interests transferred pursuant to subparagraph (B) or (D) above.

 

Beneficial
interests in an Unrestricted Global Security cannot be exchanged for, or
transferred to Persons who take delivery thereof in the form of, a beneficial
interest in a Restricted Global Security.

 

(c) Transfer
or Exchange of Beneficial Interests for Definitive Securities.

 

(i) Beneficial
Interests in Restricted Global Securities to Restricted Definitive
Securities. If any
Holder of a beneficial interest in a Restricted Global Security proposes to
exchange such beneficial interest for a Restricted Definitive Security or to
transfer such beneficial interest to a Person who takes delivery thereof in the
form of a Restricted Definitive Security, then, upon receipt by the Registrar of
the following documentation:

 

(A) if the
Holder of such beneficial interest in a Restricted Global Security proposes to
exchange such beneficial interest for a Restricted Definitive Security, a
certificate from such Holder in the form of Exhibit
C hereto,
including the certifications in item (2)(a) thereof;

 

(B) if such
beneficial interest is being transferred to a QIB in accordance with Rule 144A
under the Securities Act, a certificate to the effect set forth in Exhibit
B hereto,
including the certifications in item (1) thereof;

 

(C) if such
beneficial interest is being transferred to an Institutional Accredited Investor
in reliance on an exemption from the registration 

 

E-72

EXHIBIT
4.35 (continued)

requirements
of the Securities Act other than that listed in subparagraph (B) above, a
certificate to the effect set forth in Exhibit
B hereto,
including the certifications, certificates and Opinion of Counsel required by
item (3)(b) thereof, if applicable; or

 

(D) if such
beneficial interest is being transferred to the Company or any of its
Subsidiaries, a certificate to the effect set forth in Exhibit
B hereto,
including the certifications in item (3)(a) thereof;

 

the
Trustee shall cause the aggregate principal amount of the applicable Global
Security to be reduced accordingly pursuant to Section
2.6(h) hereof,
and the Company shall execute and the Trustee shall authenticate and deliver to
the Person designated in the instructions a Definitive Security in the
appropriate principal amount. Any Definitive Security issued in exchange for a
beneficial interest in a Restricted Global Security pursuant to this
Section
2.6(c) shall be
registered in such name or names and in such authorized denomination or
denominations as the Holder of such beneficial interest shall instruct the
Registrar through instructions from the Depositary and the Participant or
Indirect Participant. The Trustee shall deliver such Definitive Securities to
the Persons in whose names such Securities are so registered. Any Definitive
Security issued in exchange for a beneficial interest in a Restricted Global
Security pursuant to this Section
2.6(c)(i) shall
bear the Private Placement Legend and shall be subject to all restrictions on
transfer contained therein.

 

(ii) Beneficial
Interests in Legended Regulation S Global Security to Definitive
Securities. A
beneficial interest in the Legended Regulation S Global Security may not be
exchanged for a Definitive Security or transferred to a Person who takes
delivery thereof in the form of a Definitive Security on or prior to the
expiration of the Restricted Period, except in the case of a transfer pursuant
to an exemption from the registration requirements of the Securities Act other
than Rule 903 or Rule 904.

 

(iii) Beneficial
Interests in Restricted Global Securities to Unrestricted Definitive
Securities. A
Holder of a beneficial interest in a Restricted Global Security may exchange
such beneficial interest for an Unrestricted Definitive Security or may transfer
such beneficial interest to a Person who takes delivery thereof in the form of
an Unrestricted Definitive Security only if:

 

(A) such
exchange or transfer is effected pursuant to the Exchange Offer in accordance
with the Registration Rights Agreement and the Holder of such beneficial
interest, in the case of an exchange, or the transferee, in the case of a
transfer, certifies in the applicable Letter of Transmittal that it is not (1) a
Person participating in the distribution of the Exchange Securities or (2) a
Person who is an affiliate (as defined in Rule 144) of the Company;

 

(B) such
transfer is effected pursuant to the Shelf Registration Statement in accordance
with the Registration Rights Agreement;

 

E-73

Exhibit
4.35 (continued)

(C) such
transfer is effected by a Broker-Dealer pursuant to the Exchange Offer
Registration Statement in accordance with the Registration Rights Agreement;
or

 

(D) the
Registrar receives the following:

 

(1) if the
Holder of such beneficial interest in a Restricted Global Security proposes to
exchange such beneficial interest for a Definitive Security that does not bear
the Private Placement Legend, a certificate from such Holder in the form of
Exhibit
C hereto,
including the certifications in item (1)(b) thereof; or

 

(2) if the
Holder of such beneficial interest in a Restricted Global Security proposes to
transfer such beneficial interest to a Person who shall take delivery thereof in
the form of a Definitive Security that does not bear the Private Placement
Legend, a certificate from such Holder in the form of Exhibit
B hereto,
including the certifications in item (4) thereof;

 

and, in
each such case set forth in this subparagraph (D), if the Registrar so requests
or if the Applicable Procedures so require, an Opinion of Counsel in form
reasonably acceptable to the Registrar to the effect that such exchange or
transfer is in compliance with the Securities Act and that the restrictions on
transfer contained herein and in the Private Placement Legend are no longer
required in order to maintain compliance with the Securities Act.

 

(iv) Beneficial
Interests in Unrestricted Global Securities to Unrestricted Definitive
Securities. If any
Holder of a beneficial interest in an Unrestricted Global Security proposes to
exchange such beneficial interest for a Definitive Security or to transfer such
beneficial interest to a Person who takes delivery thereof in the form of a
Definitive Security, then, upon satisfaction of the conditions set forth in
Section 2.6(b)(ii) hereof,
the Trustee shall cause the aggregate principal amount of the applicable Global
Security to be reduced accordingly pursuant to Section
2.6(h) hereof,
and the Company shall execute and the Trustee shall authenticate and deliver to
the Person designated in the instructions a Definitive Security in the
appropriate principal amount. Any Definitive Security issued in exchange for a
beneficial interest pursuant to this Section
2.6(c)(iv) shall be
registered in such name or names and in such authorized denomination or
denominations as the Holder of such beneficial interest shall instruct the
Registrar through instructions from the Depositary and the Participant or
Indirect Participant. The Trustee shall deliver such Definitive Securities to
the Persons in whose names such Securities are so registered. Any Definitive
Security issued in exchange for a beneficial interest pursuant to this
Section
2.6(c)(iv) shall
not bear the Private Placement Legend.

 

(d) Transfer
and Exchange of Definitive Securities for Beneficial Interests.

 

E-74

EXHIBIT
4.35 (continued)

(i) Restricted
Definitive Securities to Beneficial Interests in Restricted Global
Securities. If any
Holder of a Restricted Definitive Security proposes to exchange such Security
for a beneficial interest in a Restricted Global Security or to transfer such
Restricted Definitive Securities to a Person who takes delivery thereof in the
form of a beneficial interest in a Restricted Global Security, then, upon
receipt by the Registrar of the following documentation:

 

(A) if the
Holder of such Restricted Definitive Security proposes to exchange such Security
for a beneficial interest in a Restricted Global Security, a certificate from
such Holder in the form of Exhibit
C hereto,
including the certifications in item (2)(b) thereof;

 

(B) if such
Restricted Definitive Security is being transferred to a QIB in accordance with
Rule 144A under the Securities Act, a certificate to the effect set forth in
Exhibit
B hereto,
including the certifications in item (1) thereof; or

 

(C) if such
Restricted Definitive Security is being transferred to a Non-U.S. Person in an
offshore transaction in accordance with Rule 903 or Rule 904 under the
Securities Act, a certificate to the effect set forth in Exhibit
B hereto,
including the certifications in item (2) thereof;

 

the
Trustee shall cancel the Restricted Definitive Security, increase or cause to be
increased the aggregate principal amount of, in the case of clause (A) above,
the appropriate Restricted Global Security, in the case of clause (B) above, the
144A Global Security, and in the case of clause (C) above, the Regulation S
Global Security.

 

(ii) Restricted
Definitive Securities to Beneficial Interests in Unrestricted Global
Securities. A
Holder of a Restricted Definitive Security may exchange such Security for a
beneficial interest in an Unrestricted Global Security or transfer such
Restricted Definitive Security to a Person who takes delivery thereof in the
form of a beneficial interest in an Unrestricted Global Security only
if:

 

(A) such
exchange or transfer is effected pursuant to the Exchange Offer in accordance
with the Registration Rights Agreement and the Holder, in the case of an
exchange, or the transferee, in the case of a transfer, certifies in the
applicable Letter of Transmittal that it is not (1) a Person participating in
the distribution of the Exchange Securities or (2) a Person who is an affiliate
(as defined in Rule 144) of the Company;

 

(B) such
transfer is effected pursuant to the Shelf Registration Statement in accordance
with the Registration Rights Agreement;

 

E-75

EXHIBIT
4.35 (continued)

(C) such
transfer is effected by a Broker-Dealer pursuant to the Exchange Offer
Registration Statement in accordance with the Registration Rights Agreement;
or

 

(D) the
Registrar receives the following:

 

(1) if the
Holder of such Definitive Securities proposes to exchange such Securities for a
beneficial interest in the Unrestricted Global Security, a certificate from such
Holder in the form of Exhibit C hereto,
including the certifications in item (1)(c) thereof; or

 

(2) if the
Holder of such Definitive Securities proposes to transfer such Securities to a
Person who shall take delivery thereof in the form of a beneficial interest in
the Unrestricted Global Security, a certificate from such Holder in the form of
Exhibit
B hereto,
including the certifications in item (4) thereof;

 

and, in
each such case set forth in this subparagraph (D), if the Registrar so requests
or if the Applicable Procedures so require, an Opinion of Counsel in form
reasonably acceptable to the Registrar to the effect that such exchange or
transfer is in compliance with the Securities Act and that the restrictions on
transfer contained herein and in the Private Placement Legend are no longer
required in order to maintain compliance with the Securities Act.

 

Upon
satisfaction of the conditions of any of the subparagraphs in this Section 2.6(d)(ii), the
Trustee shall cancel the Definitive Securities and increase or cause to be
increased the aggregate principal amount of the Unrestricted Global
Security.

 

(iii) Unrestricted
Definitive Securities to Beneficial Interests in Unrestricted Global
Securities. A
Holder of an Unrestricted Definitive Security may exchange such Security for a
beneficial interest in an Unrestricted Global Security or transfer such
Definitive Securities to a Person who takes delivery thereof in the form of a
beneficial interest in an Unrestricted Global Security at any time. Upon receipt
of a request for such an exchange or transfer, the Trustee shall cancel the
applicable Unrestricted Definitive Security and increase or cause to be
increased the aggregate principal amount of one of the Unrestricted Global
Securities.

 

If any
such exchange or transfer from a Definitive Security to a beneficial interest is
effected pursuant to subparagraphs (ii)(B), (ii)(D) or (iii) above at a time
when an Unrestricted Global Security has not yet been issued, the Company shall
issue and, upon receipt of an Authentication Order in accordance with
Section 2.2 hereof,
the Trustee shall authenticate one or more Unrestricted Global Securities in an
aggregate principal amount equal to the principal amount of Definitive
Securities so transferred. 

 

(e) Transfer
and Exchange of Definitive Securities for Definitive Securities. Upon
request by a Holder of Definitive Securities and such Holder’s compliance with
the provisions of this Section
2.6(e), the
Registrar shall register the transfer or exchange of 

 

E-76

EXHIBIT
4.35 (continued)

Definitive
Securities. Prior to such registration of transfer or exchange, the requesting
Holder shall present or surrender to the Registrar the Definitive Securities
duly endorsed or accompanied by a written instruction of transfer in form
satisfactory to the Registrar duly executed by such Holder or by its attorney,
duly authorized in writing. In addition, the requesting Holder shall provide any
additional certifications, documents and information, as applicable, required
pursuant to the following provisions of this Section
2.6(e).

 

(i) Transfer
of Restricted Definitive Securities to Restricted Definitive
Securities. Any
Restricted Definitive Security may be transferred to and registered in the name
of Persons who take delivery thereof in the form of a Restricted Definitive
Security if the Registrar receives the following:

 

(A) if the
transfer shall be made pursuant to Rule 144A under the Securities Act, then the
transferor must deliver a certificate in the form of Exhibit
B hereto,
including the certifications in item (1) thereof; and

 

(B) if the
transfer shall be made pursuant to any other exemption from the registration
requirements of the Securities Act, then the transferor must deliver a
certificate in the form of Exhibit
B hereto,
including the certifications, certificates and Opinion of Counsel required by
item (3) thereof, if applicable.

 

(ii) Restricted
Definitive Securities to Unrestricted Definitive Securities. Any
Restricted Definitive Security may be exchanged by the Holder thereof for an
Unrestricted Definitive Security or transferred to a Person or Persons who take
delivery thereof in the form of an Unrestricted Definitive Security
if:

 

(A) such
exchange or transfer is effected pursuant to the Exchange Offer in accordance
with the Registration Rights Agreement and the Holder, in the case of an
exchange, or the transferee, in the case of a transfer, certifies in the
applicable Letter of Transmittal that it is not (1) a Person participating in
the distribution of the Exchange Securities or (2) a Person who is an affiliate
(as defined in Rule 144) of the Company;

 

(B) any such
transfer is effected pursuant to the Shelf Registration Statement in accordance
with the Registration Rights Agreement;

 

(C) any such
transfer is effected by a Broker-Dealer pursuant to the Exchange Offer
Registration Statement in accordance with the Registration Rights Agreement;
or

 

(D) the
Registrar receives the following:

 

(1) if the
Holder of such Restricted Definitive Securities proposes to exchange such
Securities for an Unrestricted Definitive Security, a certificate from such
Holder in the form of Exhibit
C hereto,
including the certifications in item (1)(d) thereof; or

 

E-77

EXHIBIT
4.35 (continued)

(2) if the
Holder of such Restricted Definitive Securities proposes to transfer such
Securities to a Person who shall take delivery thereof in the form of an
Unrestricted Definitive Security, a certificate from such Holder in the form of
Exhibit
B hereto,
including the certifications in item (4) thereof,

 

and, in
each such case set forth in this subparagraph (D), if the Registrar so requests,
an Opinion of Counsel in form reasonably acceptable to the Company to the effect
that such exchange or transfer is in compliance with the Securities Act and that
the restrictions on transfer contained herein and in the Private Placement
Legend are no longer required in order to maintain compliance with the
Securities Act.

 

(iii) Unrestricted
Definitive Securities to Unrestricted Definitive Securities. A
Holder of Unrestricted Definitive Securities may transfer such Securities to a
Person who takes delivery thereof in the form of an Unrestricted Definitive
Security. Upon receipt of a request to register such a transfer, the Registrar
shall register the Unrestricted Definitive Securities pursuant to the
instructions from the Holder thereof.

 

(f) Exchange
Offer. Upon
the occurrence of the Exchange Offer in accordance with the Registration Rights
Agreement, the Company shall issue and, upon receipt of an Authentication Order
in accordance with Section
2.2, the
Trustee shall authenticate (i) one or more Unrestricted Global Securities in an
aggregate principal amount equal to the principal amount of the beneficial
interests in the Restricted Global Securities tendered for acceptance by Persons
that certify in the applicable Letters of Transmittal that (x) they are not
participating in a distribution of the Exchange Securities and (y) they are not
affiliates (as defined in Rule 144) of the Company, and (ii) Definitive
Securities in an aggregate principal amount equal to the principal amount of the
Restricted Definitive Securities accepted for exchange in the Exchange Offer.
Concurrently with the issuance of such Securities, the Trustee shall cause the
aggregate principal amount of the applicable Restricted Global Securities to be
reduced accordingly, and the Company shall execute and the Trustee shall
authenticate and deliver to the Persons designated by the Holders of Restricted
Global Securities so accepted Unrestricted Global Securities in the appropriate
principal amount.

 

(g) Legends. The
following legends shall appear on the face of all Global Securities and
Definitive Securities issued under this Indenture unless specifically stated
otherwise in the applicable provisions of this Indenture.

 

(i) Private
Placement Legend. (A)
Except as permitted below, each Global Security and each Definitive Security
(and all Securities issued in exchange therefor or substitution thereof) shall
bear the legend in substantially the following form:

 

“THIS
SECURITY AND THE GUARANTEE ENDORSED HEREON HAVE NOT BEEN REGISTERED UNDER THE
SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), OR ANY STATE
SECURITIES 

 

E-78

EXHIBIT
4.35 (continued)

LAWS.
NEITHER THIS SECURITY NOR THE GUARANTEE ENDORSED HEREON NOR ANY INTEREST OR
PARTICIPATION HEREIN MAY BE OFFERED, SOLD, ASSIGNED, TRANSFERRED, PLEDGED,
ENCUMBERED OR OTHERWISE DISPOSED OF IN THE ABSENCE OF SUCH REGISTRATION OR
UNLESS SUCH TRANSACTION IS EXEMPT FROM, OR NOT SUBJECT TO, THE REGISTRATION
REQUIREMENTS OF THE SECURITIES ACT. THE HOLDER OF THIS SECURITY AND THE
GUARANTEE ENDORSED HEREON BY ITS ACCEPTANCE HEREOF AGREES TO OFFER, SELL OR
OTHERWISE TRANSFER SUCH SECURITY, PRIOR TO THE DATE WHICH IS TWO YEARS AFTER THE
LATER OF THE ORIGINAL ISSUE DATE HEREOF AND THE LAST DATE ON WHICH THE COMPANY
OR ANY AFFILIATE OF THE COMPANY WAS THE OWNER OF THIS SECURITY AND THE GUARANTEE
ENDORSED HEREON (OR ANY PREDECESSOR OF THIS SECURITY AND THE GUARANTEE ENDORSED
HEREON) (THE “RESALE RESTRICTION TERMINATION DATE”) ONLY (A) TO THE COMPANY OR
ANY SUBSIDIARY THEREOF, (B) PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT
UNDER THE SECURITIES ACT, (C) FOR SO LONG AS THE SECURITIES ARE ELIGIBLE FOR
RESALE PURSUANT TO RULE 144A UNDER THE SECURITIES ACT (“RULE 144A”), TO A PERSON
IT REASONABLY BELIEVES IS A “QUALIFIED INSTITUTIONAL BUYER” AS DEFINED IN RULE
144A THAT PURCHASES FOR ITS OWN ACCOUNT OR FOR THE ACCOUNT OF A QUALIFIED
INSTITUTIONAL BUYER TO WHOM NOTICE IS GIVEN THAT THE TRANSFER IS BEING MADE IN
RELIANCE ON RULE 144A, (D) PURSUANT TO OFFERS AND SALES TO NON-U.S. PERSONS THAT
OCCUR OUTSIDE THE UNITED STATES WITHIN THE MEANING OF REGULATION S UNDER THE
SECURITIES ACT OR (E) PURSUANT TO ANOTHER AVAILABLE EXEMPTION FROM THE
REGISTRATION REQUIREMENTS OF THE SECURITIES ACT, SUBJECT TO THE COMPANY’S AND
THE TRUSTEE’S RIGHT PRIOR TO ANY SUCH OFFER, SALE OR TRANSFER (i) PURSUANT TO
CLAUSE (D) PRIOR TO THE END OF THE 40-DAY DISTRIBUTION COMPLIANCE PERIOD WITHIN
THE MEANING OF REGULATION S UNDER THE SECURITIES ACT OR PURSUANT TO CLAUSE (E)
PRIOR TO THE RESALE RESTRICTION TERMINATION DATE TO REQUIRE THE DELIVERY OF AN
OPINION OF COUNSEL, CERTIFICATION AND/OR OTHER INFORMATION SATISFACTORY TO EACH
OF THEM, AND (ii) IN EACH OF THE FOREGOING CASES, TO REQUIRE THAT A CERTIFICATE
OF TRANSFER IN THE FORM APPEARING ON THIS SECURITY IS COMPLETED AND DELIVERED BY
THE TRANSFEROR TO THE TRUSTEE. THIS LEGEND WILL BE REMOVED UPON THE REQUEST OF A
HOLDER AFTER THE RESALE RESTRICTION TERMINATION DATE.”

 

E-79

EXHIBIT
4.35 (continued)

Notwithstanding
the foregoing, any Global Security or Definitive Security issued pursuant to
subparagraphs (b)(iv),
(c)(ii),
(c)(iii),
(d)(ii),
(d)(iii),
(e)(ii),
(e)(iii) or
(f) to this
Section
2.6 (and all
Securities issued in exchange therefor or substitution thereof) shall not bear
the Private Placement Legend.

 

(ii) Global
Security Legend. Each
Global Security shall bear a legend in substantially the following
form:

 

“THIS
GLOBAL SECURITY IS HELD BY THE DEPOSITARY (AS DEFINED IN THE INDENTURE GOVERNING
THIS SECURITY) OR ITS NOMINEE IN CUSTODY FOR THE BENEFIT OF THE BENEFICIAL
OWNERS HEREOF, AND IS NOT TRANSFERABLE TO ANY PERSON UNDER ANY CIRCUMSTANCES
EXCEPT THAT (I) THE TRUSTEE MAY MAKE SUCH NOTATIONS HEREON AS MAY BE REQUIRED
PURSUANT TO SECTION 2.6 OF THE INDENTURE, (II) THIS GLOBAL SECURITY MAY BE
EXCHANGED IN WHOLE BUT NOT IN PART PURSUANT TO SECTION 2.6(a) OF THE INDENTURE,
(III) THIS GLOBAL SECURITY MAY BE DELIVERED TO THE TRUSTEE FOR CANCELLATION
PURSUANT TO SECTION 2.11 OF THE INDENTURE AND (IV) THIS GLOBAL SECURITY MAY BE
TRANSFERRED TO A SUCCESSOR DEPOSITARY WITH THE PRIOR WRITTEN CONSENT OF THE
COMPANY.”

 

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

 

(i) General
Provisions Relating to Transfers and Exchanges.

 

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

 

(ii) No
service charge shall be made to a Holder of a beneficial interest in a Global
Security or to a Holder of a Definitive Security for any registration of
transfer or exchange, but the Company may require payment of a sum sufficient to
cover any 

 

E-80

EXHIBIT
4.35 (continued)

transfer
tax or similar governmental charge payable in connection therewith (other than
any such transfer taxes or similar governmental charge payable upon exchange or
transfer pursuant to Sections
2.10,
3.13,
5.7, and
5.9
hereof).

 

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

 

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

 

(v) The
Company shall not be required (A) to issue, to register the transfer of or to
exchange any Securities during a period beginning at the opening of business 15
days before the day of any selection of Securities for redemption under
Section 5.3 hereof
and ending at the close of business on the day of selection, (B) to register the
transfer of or to exchange any Security so selected for redemption in whole or
in part, except the unredeemed portion of any Security being redeemed in part or
(C) to register the transfer of or to exchange a Security between a record date
and the next succeeding interest payment date.

 

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

 

(vii) The
Trustee shall authenticate Global Securities and Definitive Securities in
accordance with the provisions of Section
2.2
hereof.

 

(viii) All
certifications, certificates and Opinions of Counsel required to be submitted to
the Registrar pursuant to this Section
2.6 to
effect a registration of transfer or exchange may be submitted by facsimile with
the original to follow by first class mail.

 

Section
2.7.  [Reserved].

 

Section
2.8. [Reserved].

 

Section
2.9. Mutilated,
Destroyed, Lost or Stolen Securities. If a
mutilated Security is surrendered to the Registrar or if the Holder of a
Security claims that such Security has been lost, destroyed or wrongfully taken,
the Company shall issue and the Trustee shall authenticate a replacement
Security if the requirements of Section 8-405 of the Uniform Commercial Code are
met and the Holder satisfies any other reasonable requirements of the Trustee.
If required by the Trustee or the Company, such Holder shall furnish an
indemnity bond sufficient in the judgment 

 

E-81

EXHIBIT
4.35 (continued)

of the
Company and the Trustee to protect the Company, the Trustee, the Paying Agent,
the Registrar and any co-registrar from any loss which any of them may suffer if
a Security is replaced, and, in the absence of notice to the Company or the
Trustee that such Security has been acquired by a bona fide purchaser, the
Company shall execute and upon Company Order the Trustee shall authenticate and
make available for delivery, in exchange for any such mutilated Security or in
lieu of any such destroyed, lost or stolen Security, a new Security of like
tenor and principal amount, bearing a number not contemporaneously
outstanding.

 

In case
any such mutilated, destroyed, lost or stolen Security 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.

 

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) in connection therewith.

 

Every new
Security issued pursuant to this Section in lieu of any mutilated, destroyed,
lost or stolen Security shall constitute an original additional contractual
obligation of the Company, any Subsidiary Guarantor (if applicable) and any
other obligor upon the Securities, whether or not the mutilated, destroyed, lost
or stolen Security shall be at any time enforceable by anyone, and shall be
entitled to all benefits of this Indenture equally and proportionately with any
and all other Securities duly issued hereunder.

 

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

 

Section
2.10. Temporary
Securities. Until
Definitive Securities are ready for delivery, the Company may prepare and the
Trustee shall authenticate temporary Securities. Temporary Securities shall be
substantially in the form of Definitive Securities but may have variations that
the Company considers appropriate for temporary Securities. Without unreasonable
delay, the Company shall prepare and the Trustee shall authenticate Definitive
Securities. After the preparation of Definitive Securities, the temporary
Securities shall be exchangeable for such Definitive Securities upon surrender
of such temporary Securities at any office or agency maintained by the Company
for that purpose and such exchange shall be without charge to the Holder. Upon
surrender for cancellation of any one or more temporary Securities, the Company
shall execute, and the Trustee shall authenticate and make available for
delivery in exchange therefor, one or more Definitive Securities representing an
equal principal amount of Securities. Until so exchanged, the Holder of
temporary Securities shall in all respects be entitled to the same benefits
under this Indenture as a holder of Definitive Securities.

 

Section
2.11. Cancellation. The
Company at any time may deliver Securities to the Trustee for cancellation. The
Registrar and the Paying Agent shall forward to the Trustee any Securities
surrendered to them for registration of transfer, exchange or payment. The
Trustee 

 

E-82

EXHIBIT
4.35 (continued)

and no
one else shall cancel and return to the Company all Securities surrendered for
registration of transfer, exchange, payment or cancellation. The Company may not
issue new Securities to replace Securities it has paid or delivered to the
Trustee for cancellation for any reason other than in connection with a transfer
or exchange.

 

Section
2.12. Payment
of Interest; Defaulted Interest. The
principal of (and premium, if any) and interest on the Securities shall be
payable at the office or agency of the Company maintained for such purpose in
the Borough of Manhattan in the City of New York, or at such other office or
agency of the Company as may be maintained for such purpose pursuant to Section
2.3 herein; provided,
however, that,
at the option of the Company, each installment of interest may be paid by check
mailed to addresses of the Persons entitled thereto as such addresses shall
appear on the Security Register and; provided,
further, that
all payments with respect to the Securities, the Holders of which have given
wire transfer instructions to the Company and the Paying Agent prior to the
applicable record date for such payment, will be required to be made by wire
transfer of immediately available funds to the accounts specified by the Holders
thereof. Payments in respect of Securities represented by a Global Security
(including principal, premium and interest) will be made by wire transfer of
immediately available funds to the accounts specified by DTC.

 

Interest
on any Security which is payable, and is 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 at the close of
business on the regular record date for such interest at the office or agency of
the Company maintained for such purpose pursuant to Section
2.3
herein.

 

Any
interest on any Security which is payable, but is not punctually paid or duly
provided for when the same becomes due and payable, shall forthwith cease to be
payable to the Holder on the relevant regular record date by virtue of having
been such a Holder, and such defaulted interest and (to the extent lawful)
interest on such defaulted interest at the rate borne by the Securities (such
defaulted interest and interest thereon herein collectively called “Defaulted
Interest”) shall
be paid by the Company, at its election in each case, as provided in
paragraph
(a) or
(b)
below:

 

(a) The
Company may elect to make payment of any Defaulted Interest to the Persons in
whose names the Securities (or their respective predecessor Securities) are
registered at the close of business on a Special Record Date (as defined below)
for the payment of such Defaulted Interest, which shall be fixed in the
following manner. The Company shall deposit with the Trustee an amount of money
equal to the aggregate amount proposed to be paid in respect of such Defaulted
Interest or shall make arrangements satisfactory to the Trustee for such deposit
prior to the date of the proposed payment, such money when deposited to be held
in trust for the benefit of the Persons entitled to such Defaulted Interest as
in this paragraph
(a)
provided. Thereupon the Trustee shall fix a record date (the “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

 

E-83

EXHIBIT
4.35 (continued)

proposed
payment of such Defaulted Interest and the Special Record Date therefor to be
given in the manner provided for in Section
11.2 herein,
not less than 10 days prior to such Special Record Date. Notice of the proposed
payment of such Defaulted Interest and the Special Record Date therefor having
been so given, such Defaulted Interest shall be paid to the Persons in whose
names the Securities (or their respective predecessor Securities) are registered
at the close of business on such Special Record Date and shall no longer be
payable pursuant to the following paragraph
(b).

 

(b) The
Company may make payment of such Defaulted Interest to the Persons in whose
names such Securities are registered at the close of business on a specified
date in any other lawful manner not inconsistent with the requirements of any
securities exchange on which the Securities may be listed, and upon such notice
as may be required by such exchange, if, after notice given by the Company to
the Trustee of the proposed payment pursuant to this clause, such manner of
payment shall be deemed practicable by the Trustee.

 

(c) Subject
to the foregoing provisions of this Section, 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
2.13. Computation
of Interest.
Interest on the Securities shall be computed on the basis of a 360-day year of
twelve 30-day months.

 

Section
2.14. CUSIP
Numbers. The
Company in issuing the Securities may use “CUSIP,” “ISIN” or “Common Code”
numbers (if then generally in use) and, if so, the Trustee shall use “CUSIP,”
“ISIN” or “Common Code” numbers in notices of redemption as a convenience to
Holders; provided,
however, 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 by any defect in or omission of such numbers. The Company shall
promptly notify the Trustee of any change in the “CUSIP,” “ISIN” or “Common
Code” numbers.

 

ARTICLE
III

 

COVENANTS

 

Section
3.1. Application
of Certain Covenants. After
such time as:

 

(a) the
Securities have been assigned an Investment Grade rating by both Rating
Agencies; and

 

(b) no
Default under this Indenture has occurred and is continuing,

 

and
notwithstanding that the Securities may later cease to have an Investment Grade
Rating by either or both Rating Agencies, the Company and its Restricted
Subsidiaries will not be subject to Sections
3.10, 3.11,
3.12,
3.13,
3.15 and
3.16,
paragraphs (a) and
(c) of
Section
3.14 and
Section
4.1(a)(ii)
herein.

 

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EXHIBIT
4.35 (continued)

A change
in the rating on the Securities by either Rating Agency shall be deemed to have
occurred on the date that such Rating Agency shall have publicly announced the
change.

 

Section
3.2. Payment
of Principal, Premium, if any, and Interest, if any. The
Company covenants and agrees for the benefit of the Holders of Outstanding
Securities that it will duly and punctually pay the principal of, premium, if
any, and interest, if any, on the Securities in accordance with the terms of the
Securities and this Indenture. An installment of principal, premium, if any, or
interest, if any, shall be considered paid on the date it is due if the Trustee
or Paying Agent holds on that date money designated for and sufficient to pay
the installment.

 

Section
3.3. Maintenance
of Office or Agency. The
Company will maintain in each Place of Payment for the Securities an office or
agency where the Securities may be presented or surrendered for payment, where
the Securities may be surrendered for registration of transfer or exchange and
where notices and demands to or upon the Company in respect of the Securities
and this Indenture may be served. The Corporate Trust Office of the Trustee
shall be such an office or agency of the Company, unless the Company may
designate and maintain some other office or agency for one or more of such
purposes. The Company will give prompt written notice to the Trustee of any
change in the location of any 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, and the Company hereby appoints the Trustee as its agent to receive all
such presentations, surrenders, notices and demands.

 

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

 

Section
3.4. Money for
Securities Payments to be Held in Trust; Unclaimed Money. If the
Company shall at any time act as its own Paying Agent with respect to the
Securities, it will, on or before each due date of the principal of, premium, if
any, or interest, if any, on the Securities, segregate and hold in trust for the
benefit of the Persons entitled thereto a sum sufficient to pay the principal,
premium, if any, or interest so becoming due until such sums shall be paid to
such Persons or otherwise disposed of as herein provided and will promptly
notify the Trustee in writing of its action or failure so to act.

 

The
Company will cause each Paying Agent 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
will:

 

E-85

EXHIBIT
4.35 (continued)

(a) hold all
sums held by it for the payment of the principal of, premium, if any, or
interest, if any, on the Securities in trust for the benefit of the Persons
entitled thereto until such sums shall be paid to such Persons or otherwise
disposed of as herein provided;

 

(b) give the
Trustee notice of any default by the Company or any Subsidiary Guarantor (or any
other obligor upon the Securities) in the making of any payment of principal,
premium, if any, or interest, if any, on the Securities; and

 

(c) 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.

 

The
Company may at any time, for the purpose of obtaining the satisfaction and
discharge or defeasance 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 money.

 

Any money
deposited with the Trustee or any Paying Agent, or then held by the Company, in
trust for the payment of any principal, premium or interest on any Security and
remaining unclaimed for two years after such principal, premium, if any, or
interest, if any, has become due and payable shall be paid to the Company on
Company Request or (if then held by the Company) shall be discharged from such
trust, unless otherwise required by certain provisions of applicable law; and
the Holder of such Security 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 at the expense of the Company cause to be published once, in a
newspaper published in the English language, customarily published on each
Business Day and of general circulation in The City of New York, or cause to be
mailed to such Holder, notice that such money remains unclaimed and that, after
a date specified therein, which shall not be less than 30 days from the date of
such publication, any unclaimed balance of such money then remaining will be
repaid to the Company.

 

Section
3.5. Corporate
Existence. Subject
to Article IV herein, the Company will at all times do or cause to be done all
things necessary to preserve and keep in full force and effect its corporate
existence and its rights and franchises; provided, that
nothing in this Section 3.5 shall prevent the abandonment or termination of any
right or franchise of the Company if, in the opinion of the Company, such
abandonment or termination is in the best interests of the Company and does not
materially adversely affect the ability of the Company to fulfill its
obligations hereunder.

 

Section
3.6. Reports
by the Company. The
Company covenants:

 

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EXHIBIT
4.35 (continued)

(a) so long
as any of the Securities are outstanding, the Company will file with the
Commission and, within 15 days after it files them with the Commission, file
with the Trustee and mail or cause the Trustee to mail to the Holders at their
addresses as set forth in the registers of the Securities, copies of the annual
reports and of the information, documents and other reports which the Company is
required to file with the Commission pursuant to Section 13 or 15(d) of the
Exchange Act or which the Company would be required to file with the Commission
if the Company then had a class of securities registered under the Exchange
Act;

 

(b) to file
with the Trustee and the Commission, in accordance with the 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 provided for in the Indenture, as may be
required from time to time by such rules and regulations;
and

 

(c) to comply
with Sections 313(b) and 313(d) of the Trust Indenture Act, to the extent
applicable.

 

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 information concerning the Company’s
compliance with any of its covenants hereunder; provided that the
foregoing shall not relieve the Trustee of any of its responsibilities
hereunder. 

 

Section
3.7. Annual
Review Certificate; Notice of Defaults or Events of Default.

 

(a) The
Company covenants and agrees to deliver to the Trustee, within 120 days after
the end of each fiscal year of the Company (beginning with the fiscal year next
following the Issue Date), a certificate from an executive officer as to his or
her knowledge of the Company’s compliance with all conditions and covenants
under this Indenture. For purposes of this Section
3.7, such
compliance shall be determined without regard to any period of grace or
requirement of notice provided under this Indenture.

 

(b) The
Company covenants and agrees to deliver to the Trustee, within a reasonable time
(and in any event within five Business Days) after the Company becomes aware of
the occurrence of a Default or an Event of Default of the character specified in
Section
6.1(d) herein,
written notice of the occurrence of such Default or Event of
Default.

 

Section
3.8. Books of
Record and Account. The
Company will keep proper books of record and account, either on a consolidated
or individual basis. The Company shall cause its books of record and account to
be examined either on a consolidated or individual basis, by one or more firms
of independent public accountants not less frequently than annually. The Company
shall prepare its financial statements in accordance with generally accepted
accounting principles.

 

Section
3.9. Limitation
on Liens. The
Company will not, and will not cause or permit any of its Restricted
Subsidiaries to, create, incur, assume or suffer to exist any Liens upon any of
their respective properties or assets (including, without limitation, any asset
in the form of the 

 

E-87

EXHIBIT
4.35 (continued)

right to
receive payments, fees or other consideration or benefits) whether owned on the
Issue Date or acquired after the Issue Date, other than:

 

(a) Liens
granted by the Company or a Subsidiary Guarantor on property or assets of the
Company or a Subsidiary Guarantor securing Indebtedness of the Company or a
Subsidiary Guarantor that is permitted by this Indenture and that is pari passu
with the Securities or the Subsidiary Guarantee; provided, that
the Securities or the Subsidiary Guarantee are secured on an equal and ratable
basis with the Indebtedness secured by such Liens for so long as such
Indebtedness is so secured;

 

(b) Liens
granted by the Company or a Subsidiary Guarantor on property or assets of the
Company or a Subsidiary Guarantor securing Indebtedness of the Company or a
Subsidiary Guarantor that is permitted by this Indenture and that is
subordinated to the Securities or the Subsidiary Guarantee; provided, that
the Securities or the Subsidiary Guarantee, as the case may be, are secured by
Liens ranking prior to such Liens;

 

(c) Permitted
Liens;

 

(d) Liens in
respect of Acquired Indebtedness permitted by this Indenture; provided, that
the Liens in respect of such Acquired Indebtedness secured such Acquired
Indebtedness at the time of the incurrence of such Acquired Indebtedness and
such Liens and the Acquired Indebtedness were not incurred by the Company or by
the Person being acquired or from whom the assets were acquired in connection
with, or in anticipation of, the incurrence of such Acquired Indebtedness by the
Company, and provided,
further that
such Liens in respect of such Acquired Indebtedness do not extend to or cover
any property or assets of the Company or of any Restricted Subsidiary of the
Company other than the property or assets that secured the Acquired Indebtedness
prior to the time such Indebtedness became Acquired Indebtedness of the
Company;

 

(e) Liens
granted in connection with any Qualified Securitization
Transaction;

 

(f) Liens
arising from claims of holders of Indebtedness against funds held in a
defeasance trust for the benefit of such holders; and

 

(g) Liens on
property or assets of the Company or any Restricted Subsidiary securing
Indebtedness permitted by this Indenture not to exceed the greater of
(A) $200.0 million and (B) the sum of (1) 85.0% of the total
book value of accounts receivable and (2) 50.0% of the total book value of
inventory, in each case as reflected on the Company’s most recent consolidated
financial statements prepared in accordance with GAAP.

 

Section
3.10. Limitation
on Incurrence of Indebtedness. The
Company will not, and will not cause or permit any of its Restricted
Subsidiaries to incur, directly or indirectly, any Indebtedness,
except:

 

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EXHIBIT
4.35 (continued)

(a) Indebtedness
of the Company or any Subsidiary Guarantor, if immediately after giving effect
to the incurrence of such Indebtedness and the receipt and application of the
net proceeds thereof, the Consolidated Cash Flow Ratio of the Company for the
four full fiscal quarters for which quarterly or annual financial statements are
available next preceding the incurrence of such Indebtedness would be greater
than 2.0 to 1.0;

 

(b) Indebtedness
outstanding on the Issue Date;

 

(c) [Reserved];

 

(d) Indebtedness
owed by the Company to any Restricted Subsidiary of the Company or Indebtedness
owed by a Subsidiary of the Company to the Company or a Restricted Subsidiary of
the Company; provided, that,
upon either

 

(i) the
transfer or other disposition by such Restricted Subsidiary or the Company of
any Indebtedness so permitted under this paragraph (d) to a
Person other than the Company or another Restricted Subsidiary of the Company
or

 

(ii) the
issuance (other than directors’ qualifying shares), sale, transfer or other
disposition of shares of Capital Stock or other ownership interests (including
by consolidation or merger) of such Restricted Subsidiary to a Person other than
the Company or another such Restricted Subsidiary of the Company, the provisions
of this paragraph (d) shall no
longer be applicable to such Indebtedness and such Indebtedness shall be deemed
to have been incurred at the time of any such issuance, sale, transfer or other
disposition, as the case may be;

 

(e) Indebtedness
of the Company or its Restricted Subsidiaries under any Interest Rate Protection
Agreement or Currency Agreement;

 

(f) Acquired
Indebtedness to the extent the Company could have incurred such Indebtedness in
accordance with paragraph
(a) above on
the date such Indebtedness became Acquired Indebtedness;

 

(g) Indebtedness
incurred by the Company or any of its Restricted Subsidiaries constituting
reimbursement obligations with respect to letters of credit issued in the
ordinary course of business, including, without limitation, letters of credit in
response to worker’s compensation claims or self-insurance;

 

(h) Indebtedness
arising from agreements of the Company or a Restricted Subsidiary of the Company
providing for indemnification, adjustment of purchase price, earn-out or other
similar obligations, in each case, incurred or assumed in connection with the
disposition of any business, assets or a Subsidiary of the Company;

 

(i) Obligations
in respect of performance and surety bonds and completion guarantees provided by
the Company or any Restricted Subsidiary of the Company in the ordinary course
of business;

 

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EXHIBIT
4.35 (continued)

(j) Indebtedness
consisting of notes issued to employees, officers or directors in connection
with the redemption or repurchase of Capital Stock held by such Persons in an
aggregate amount not in excess of $10.0 million at any time
outstanding;

 

(k) Indebtedness
consisting of take-or-pay obligations contained in supply agreements entered
into by the Company or its Restricted Subsidiaries in the ordinary
course;

 

(l) the
guarantees by the Company or any of its Restricted Subsidiaries of Indebtedness
of the Company or any Restricted Subsidiary permitted to be incurred under
another provision of the covenant;

 

(m) Indebtedness
incurred to renew, extend, refinance or refund (collectively for purposes of
this paragraph
(m) to
“refund”) any Indebtedness incurred pursuant to paragraphs
(a) and
(b) above,
this paragraph (m) or
paragraphs (n) or
(o) below;
provided,
that:

 

(i) such
Indebtedness does not exceed the principal amount (or accreted amount, if less)
of Indebtedness so refunded plus the amount of any premium required to be paid
in connection with such refunding pursuant to the terms of the Indebtedness
refunded or the amount of any premium reasonably determined by the Company as
necessary to accomplish such refunding by means of a tender offer, exchange
offer, or privately negotiated repurchase, plus the expenses of the Company or
such Restricted Subsidiary incurred in connection therewith and

 

(ii) (A)  in the
case of any refunding of Indebtedness that is pari passu with the Securities,
such refunding Indebtedness is made pari passu with or subordinate in right of
payment to such Securities, and, in the case of any refunding of Indebtedness
that is subordinate in right of payment to the Securities, such refunding
Indebtedness is subordinate in right of payment to such Securities on terms no
less favorable to the Holders than those contained in the Indebtedness being
refunded,

 

(B)  in
either case, the refunding Indebtedness by its terms, or by the terms of any
agreement or instrument pursuant to which such Indebtedness is issued does not
have an Average Life that is less than the remaining Average Life of the
Indebtedness being refunded (in the event that any portion of such refunding
Indebtedness has a scheduled maturity prior to the Securities) and does not
permit redemption or other retirement (including pursuant to any required offer
to purchase to be made by the Company or any of its Restricted Subsidiaries) of
such Indebtedness at the option of the holder thereof prior to the final stated
maturity of the Indebtedness being refunded, other than a redemption or other
retirement at the option of the holder of such Indebtedness (including pursuant
to a required offer to purchase made by the Company or any of its Restricted
Subsidiaries) which is conditioned upon a change of control of the 

 

E-90

EXHIBIT
4.35 (continued)

Company
pursuant to provisions substantially similar to those contained in Section
5.9 herein
and

 

(C) Indebtedness
of a Restricted Subsidiary that is not a Subsidiary Guarantor may not be
incurred to refund any Indebtedness of the Company;

 

(n) Indebtedness
of the Company under the Securities outstanding on the Issue Date and under the
Exchange Securities to be issued therefor pursuant to the Registration Rights
Agreement and Indebtedness of the Guarantor under the International Guarantee
with respect to the Securities outstanding on the Issue Date and the Exchange
Securities to be issued therefor pursuant to the Registration Rights
Agreement;

 

(o) Indebtedness
of the Company relating to the assumption of the 4.75% Subordinated
Exchangeable Notes originally issued by NFC;

 

(p) the
consummation of any Qualified Securitization Transaction;

 

(q) Attributable
Indebtedness relating to any Sale/Leaseback Transaction with respect to the
purchase of tooling and related manufacturing equipment in the ordinary course
of business consistent with past practices; 

 

(r) the
incurrence by the Company or any Restricted Subsidiary of Indebtedness
(including Capital Lease Obligations) to finance the purchase, lease or
improvement of property (real or personal) or equipment (whether through the
direct purchase of assets or the Capital Stock of any Person owning such assets)
in an aggregate principal amount outstanding not to exceed the greater of
(a) $75.0 million or (b) 2.0% of Consolidated Net Tangible Assets
at the time of any incurrence thereof;

 

(s) the
accrual of interest, accretion or amortization of original issue discount, the
payment of interest on any Indebtedness in the form of additional Indebtedness
with the same terms, and the payment of dividends on Disqualified Capital Stock
or Preferred Stock in the form of additional shares of the same class of
Disqualified Capital Stock or Preferred Stock; provided in each
such case that the amount thereof is included in Consolidated Fixed Charges of
the Company as accrued; and

 

(t) Indebtedness
of the Company or its Restricted Subsidiaries, not otherwise permitted to be
incurred pursuant to paragraph (a) through
(s) above,
which, together with any other outstanding Indebtedness incurred pursuant to
this paragraph (t), has an
aggregate principal mount not in excess of $250.0 million at any time
outstanding.

 

For
purposes of determining compliance with this covenant, in the event that an item
of Indebtedness meets the criteria of more than one of the categories of
Permitted Indebtedness described in paragraphs (a) through
(t) above,
the Company shall, in its sole discretion, classify such item of Indebtedness
and may divide and classify such Indebtedness in more than one of the types of
Indebtedness described, and may later reclassify any item of Indebtedness
described in paragraphs (a) through
(t)
(provided that at
the time of reclassification 

 

E-91

EXHIBIT
4.35 (continued)

it meets
the criteria in such category or categories). In addition, for purposes of
determining any particular amount of Indebtedness under this covenant,
guarantees, Liens or letter of credit obligations supporting Indebtedness
otherwise included in the determination of such particular amount shall not be
included so long as incurred by a Person that could have incurred such
Indebtedness.

 

Section
3.11. Limitation
on Preferred Stock of Restricted Subsidiaries. The
Company will not cause or permit any of its Restricted Subsidiaries to issue any
Preferred Stock other than to the Company or to another Restricted Subsidiary;
provided that a
Subsidiary Guarantor may issued Preferred Stock to any other Person if at the
time of issuance of such Preferred Stock, the Company after giving pro forma
effect to such issuance treating the aggregate liquidation preference of such
Preferred Stock as Indebtedness, would have been able to incur at least $1.00 of
additional Indebtedness pursuant to paragraph (a) of Section 3.10
herein.

 

Section
3.12. Limitation
on Restricted Payments.

 

(a) The
Company will not, and will not cause or permit any of its Restricted
Subsidiaries to directly or indirectly:

 

(i) declare
or pay any dividend, or make any distribution of any kind or character (whether
in cash, property or securities), in respect of any class of its Capital Stock
or to the holders thereof in their capacity as stockholders, excluding any
(A) dividend or distributions payable solely in shares of its Qualified
Capital Stock or in options, warrants or other rights to acquire its Qualified
Capital Stock or (B) in the case of any Restricted Subsidiary of the
Company, dividends or distributions payable to the Company or a Restricted
Subsidiary of the Company;

 

(ii) purchase,
redeem, or otherwise acquire or retire for value shares of Capital Stock of the
Company, or any options, warrants or rights to purchase or acquire shares of
Capital Stock of the Company (but excluding any debt security that is
convertible into, or exchangeable for, Capital Stock of the Company), excluding
any such shares of Capital Stock, options, warrants, rights or securities which
are owned by the Company or a Restricted Subsidiary of the Company;

 

(iii) make any
Investment (other than a Permitted Investment); or

 

(iv) redeem,
defease, repurchase, retire or otherwise acquire or retire for value, prior to
any scheduled maturity, repayment or sinking fund payment, Indebtedness which is
subordinate in right of payment to the Securities (each of the transactions
described in clauses
(i) through (iv) above
(other than any exception to any such clause) being a “Restricted
Payment”),

 

if at the
time thereof:

 

(i) an Event
of Default, or an event that with the passing of time or giving of notice, or
both, would constitute an Event of Default, shall have occurred and be
continuing, or

 

E-92

EXHIBIT
4.35 (continued)

(ii) upon
giving effect to such Restricted Payment, the Company could not incur at least
$1.00 of additional Indebtedness pursuant to the terms of paragraph (a) of
Section
3.10 of this
Indenture, or

 

(iii) upon
giving effect to such Restricted Payment, the aggregate of all Restricted
Payments made on or after the Issue Date exceeds the sum (without duplication)
of:

 

(A) 50% of
cumulative Consolidated Net Income of the Company (or, in the case cumulative
Consolidated Net Income of the Company shall be negative, less 100% of such
deficit) for the period (treated as a single accounting period) from May 1,
2004 through the last day of the Company’s most recently ended fiscal quarter
for which financial statements are available; plus

 

(B) 100% of
the aggregate net cash proceeds and the fair market value of property or
marketable securities received after the 71⁄2% Notes Issue Date from the issuance
of Qualified Capital Stock of the Company and warrants, rights or options on
Qualified Capital Stock of the Company (other than in respect of any such
issuance to a Subsidiary of the Company) and the principal amount of
Indebtedness of the Company or a Subsidiary of the Company that has been
converted into or exchanged for Qualified Capital Stock of the Company after the
Issue Date; plus

 

(C) in the
case of the disposition or repayment of any Investment constituting a Restricted
Payment made after the 71⁄2% Notes Issue Date, an amount equal to the return of
capital with respect to such Investment, less the cost of the disposition of
such Investment; plus

 

(D) 100% of
the aggregate net cash proceeds and the fair market value of property or
marketable securities received after the 71⁄2% Notes Issue Date from Unrestricted
Subsidiaries resulting from the receipt of dividends or other distributions or
payments, repayments of loans or advances or other transfers of assets or
proceeds form the disposition of Capital Stock, in each case to the Company or
any Restricted Subsidiary from, or with respect to, interests in Unrestricted
Subsidiaries; provided that any
such amounts included in this subparagraph (D) shall
not be include in Consolidated Net Income of the Company for purposes of
subparagraph (A) above;
plus

 

(E) the
portion (proportionate to the Company’s equity interest in such Subsidiary) of
the fair market value of the net assets of an Unrestricted Subsidiary at the
time such Unrestricted Subsidiary is designated a Restricted Subsidiary not to
exceed the amount of Investments made by the Company or any Restricted
Subsidiary (and treated as a Restricted Payment) in such Unrestricted
Subsidiary.

 

For
purposes of determining the amount expended for Restricted Payments under this
clause
(iii),
property other than cash shall be valued at its fair market value.

 

E-93

EXHIBIT
4.35 (continued)

(b) Notwithstanding
the foregoing, the provisions set forth in paragraph
(a) above
will not prohibit:

 

(i) any
dividend on any class of Capital Stock of the Company paid within 60 days
after the declaration thereof if, on the date when the dividend was declared,
the Company could have paid such dividend in accordance with the provisions of
this Indenture;

 

(ii) the
renewal, extension, refunding or refinancing of any Indebtedness otherwise
permitted pursuant to the terms of this Indenture;

 

(iii) the
exchange or conversion of any Indebtedness of the Company or any of its
Restricted Subsidiaries for or into Qualified Capital Stock of the
Company;

 

(iv) any
Restricted Payments, including loans or other advances made pursuant to any
employee benefit plans (including plans for the benefit of directors) or
employment agreements or other compensation arrangements, in each case as
approved by the Board of Directors of the Company in its good faith
judgment;

 

(v) so long
as no Default or Event of Default has occurred and is continuing, any Investment
made with the proceeds of a substantially concurrent sale of Qualified Capital
Stock of the Company; provided, that
the proceeds of such sale of Qualified Capital Stock shall not be (and have not
been) included in clause
(iii) of
paragraph
(a)
above;

 

(vi) the
redemption, repurchase, retirement or other acquisition of any Capital Stock of
the Company in exchange for or out of the net cash proceeds of the substantially
concurrent sale (other than to a Restricted Subsidiary of the Company) of
Qualified Capital Stock of the Company; provided, that
the proceeds of such sale of Capital Stock shall not be (and have not been)
included in clause (iii) of
paragraph
(a)
above;

 

(vii) so long
as no Event of Default has occurred and is continuing, the redemption,
repurchase, retirement or other acquisition of any subordinated Indebtedness of
the Company in exchange for or out of the net cash proceeds of the substantially
concurrent sale (other than to a Subsidiary of the Company) of Qualified Capital
Stock of the Company; provided, that
the proceeds of such sale of Qualified Capital Stock shall not be (and have not
been) included in clause (iii) of
paragraph
(a)
above;

 

(viii) Investments
in NFC made pursuant to the Support Agreement to the extent required by the
Support Agreement;

 

(ix) the
declaration and payment of dividends to holders of any class of Preferred Stock
issued after the 71⁄2% Notes Issue Date; provided, that at
the time of the issuance of such Preferred Stock, the Company, after giving pro
forma effect to such issuance treating the aggregate liquidation preference of
such Preferred Stock as Indebtedness, would have been able to incur at least
$1.00 of additional Indebtedness pursuant to the terms of paragraph
(a) of
Section 3.10 of this
Indenture;

 

E-94

EXHIBIT
4.35 (continued)

(x) so long
as no Event of Default has occurred and is continuing, any purchase or
redemption or other retirement for value of Capital Stock of the Company
required pursuant to any shareholders agreement, management agreement or
employee stock option agreement in accordance with the provisions of any such
arrangement in an amount not to exceed $20.0 million in the
aggregate;

 

(xi) repurchases
of Capital Stock deemed to occur upon the exercise of stock options if such
Capital Stock represents a portion of the exercise price thereof or tax
withholding related to the exercise of such stock options;

 

(xii) payments
not to exceed $10.0 million per annum in the aggregate to enable the
Company to make payments to holders of its Capital Stock in lieu of issuance of
fractional shares of its Capital Stock;

 

(xiii) so long
as no Event of Default has occurred and is continuing, (a) the redemption
or repurchase of the 4.75% Subordinated Exchangeable Notes or (b) the
redemption of any other stock purchase rights under a rights plan in an
aggregate amount not to exceed $2.5 million; 

 

(xiv) so long
as no Event of Default has occurred and is continuing, Investments in Permitted
Joint Ventures and designations of Restricted Subsidiaries as Unrestricted
Subsidiaries; provided, that
after giving pro forma effect to such Investment or designation, the Company
could incur at least $1.00 of additional Indebtedness pursuant to the terms of
paragraph
(a) of
Section
3.10;
and

 

(xv) so long
as no Event of Default has occurred and is continuing, the repurchase,
redemption, acquisition or retirement of subordinated Indebtedness with
Unutilized Net Available Proceeds remaining after an Offer to Purchase pursuant
to Section
3.13;

 

(xvi) so long
as no Event of Default has occurred and is continuing, the repurchase,
redemption, acquisition or retirement of any subordinated Indebtedness at a
price not greater than 101% of the principal amount thereof (together with
accrued and unpaid interest) following a “change of control” (defined in a
manner comparable to the definition of Change of Control) after the Company
shall have complied with the provisions of Section
5.9 and has
purchased all Securities validly tendered and not withdrawn; and

 

(xvii) if no
Default or Event of Default shall have occurred and be continuing or would occur
as a consequence thereof, any other Restricted Payment which, together with all
other Restricted Payments made pursuant to this clause (xvii), does
not to exceed $200.0 million in aggregate since the 71⁄2% Notes Issue
Date.

 

E-95

EXHIBIT
4.35 (continued)

Each
Restricted Payment described in clauses
(i),
(iv),
(viii), (x), (xv) and
(xvi) of this
paragraph
(b) shall be
taken into account (and the Restricted Payments described in the remaining
clauses shall not be taken into account) for purposes of computing the aggregate
amount of all Restricted Payments made pursuant to clause (iii) of
paragraph
(a) above.

 

Section
3.13. Limitation
on Certain Asset Dispositions. The
Company will not, and will not cause or permit any of its Restricted
Subsidiaries to, directly or indirectly, make one or more Asset Dispositions
unless:

 

(a) the
Company or the Restricted Subsidiary, as the case may be, receives consideration
for such Asset Disposition at least equal to the fair market value of the assets
sold or disposed of (as determined in good faith by the Company);

 

(b) not less
than 75% of the consideration for the disposition consists of cash or readily
marketable cash equivalents or the assumption of Indebtedness (other than
non-recourse Indebtedness or any Indebtedness subordinated to the Securities) of
the Company or such Restricted Subsidiary or other obligations relating to such
assets (and release of the Company or such Restricted Subsidiary from all
liability on the Indebtedness or other obligations assumed); and

 

(c) all Net
Available Proceeds, less any amounts invested or committed to be invested within
360 days of such Asset Disposition in assets related to the business of the
Company (including capital expenditures or the Capital Stock of another Person
(other than the Company or any Person that is a Restricted Subsidiary of the
Company immediately prior to such investment); provided, that
immediately after giving effect to any such investment (and not prior thereto)
such Person shall be a Restricted Subsidiary of the Company), are applied, on or
prior to the 360th day after such Asset Disposition (unless and to the extent
that the Company shall determine to make an Offer to Purchase), either
to

 

(i) the
permanent reduction and prepayment of any Indebtedness of the Company (other
than Indebtedness which is expressly subordinate to the applicable issue of
Securities) then outstanding (including a permanent reduction of commitments in
respect thereof) or

 

(ii) the
permanent reduction and repayment of any Indebtedness of any Restricted
Subsidiary of the Company then outstanding (including a permanent reduction of
commitments in respect thereof).

 

The 361st
day after such Asset Disposition shall be deemed to be the “Asset
Sale Offer Trigger Date,” and
the amount of Net Available Proceeds from Asset Dispositions otherwise subject
to the preceding provisions not so applied or as to which the Company has
determined not to so apply shall be referred to as the “Unutilized
Net Available Proceeds.” Within
fifteen days after the Asset Sale Offer Trigger Date, the Company shall make an
Offer to Purchase the outstanding applicable issue of Securities at a purchase
price in cash equal to 100% of their principal amount plus any accrued and
unpaid interest thereon to the Purchase Date. Notwithstanding the foregoing, the
Company may defer making any Offer to Purchase outstanding Securities until

 

E-96

EXHIBIT
4.35 (continued)

there are
aggregate Unutilized Net Available Proceeds equal to or in excess of
$25.0 million (at which time, the entire Unutilized Net Available Proceeds,
and not just the amount in excess of $25.0 million, shall be applied as
required pursuant to this paragraph). Pending application of the Unutilized Net
Available Proceeds pursuant to this covenant, such Unutilized Net Available
Proceeds shall be invested in Permitted Investments of the types described in
clauses (1),
(2) and
(3) of
the definition of “Permitted Investments.”

 

If any
Indebtedness of the Company or any of its Restricted Subsidiaries ranking pari
passu with the Securities requires that prepayment of, or an offer to prepay,
such Indebtedness be made with any Net Available Proceeds, the Company may apply
such Net Available Proceeds pro rata (based on the aggregate principal amount of
the Securities then outstanding and the aggregate principal amount (or accreted
value, if less) of all such other Indebtedness then outstanding) to the making
of an Offer to Purchase the Securities in accordance with the foregoing
provisions and the prepayment or the offer to prepay such pari passu
Indebtedness. Any remaining Net Available Proceeds following the completion of
the required Offer to Purchase may be used by the Company for any other purpose
(subject to the other provisions of this Indenture) and the amount of Net
Available Proceeds then required to be otherwise applied in accordance with this
covenant shall be reset to zero, subject to any subsequent Asset Disposition.
These provisions will not apply to a transaction consummated in compliance with
the provisions of this Indenture.

 

Notwithstanding
the foregoing, the provisions of this covenant shall not apply to any
Sale/Leaseback Transaction with respect to the purchase of tooling and related
manufacturing equipment in the ordinary course of business consistent with past
practices.

 

In the
event that the Company makes an Offer to Purchase the Securities, the Company
shall comply with any applicable securities laws and regulations, including any
applicable requirements of Section 14(e) of, and Rule 14e-1 under, the
Exchange Act and any violation of the provisions of this Indenture relating to
such Offer to Purchase occurring as a result of such compliance shall not be
deemed an Event of Default or an event that with the passing of time or giving
of notice, or both, would constitute an Event of Default.

 

Section
3.14. Limitation
on Sale/Leaseback Transactions. The
Company shall not, and shall not cause or permit any Restricted Subsidiary to,
enter into any Sale/Leaseback Transaction with respect to any property
unless:

 

(a) the
Company or such Restricted Subsidiary would be entitled to incur Indebtedness in
an amount equal to the Attributable Indebtedness with respect to such
Sale/Leaseback Transaction pursuant to Section
3.10; 

 

(b) the net
proceeds received by the Company or any Restricted Subsidiary in connection with
such Sale/Leaseback Transaction are at least equal to the fair value (as
determined by the Board of Directors) of such property; and

 

(c) the
Company or such Restricted Subsidiary applies the proceeds of such transaction
in compliance with Section
3.13
herein.

 

E-97

EXHIBIT
4.35 (continued)

Notwithstanding
the foregoing, the provisions of this covenant shall not prohibit the Company or
any Restricted Subsidiary from entering into any Sale/Leaseback Transaction with
respect to the purchase of tooling and related manufacturing equipment in the
ordinary course of business consistent with past practices.

 

Section
3.15. Limitation
on Payment Restrictions Affecting Restricted Subsidiaries.

 

(a) The
Company will not, and will not cause or permit any of its Restricted
Subsidiaries to, directly or indirectly, create or suffer to exist or allow to
become effective any consensual encumbrance or restriction of any kind on the
ability of any such Restricted Subsidiary to:

 

(i) pay
dividends, in cash or otherwise, or make other payments or distributions on its
Capital Stock or any other equity interest or participation in, or measured by,
its profits, owned by the Company or by any Restricted Subsidiary of the
Company, or make payments on any Indebtedness owed to the Company or to any
Restricted Subsidiary of the Company;

 

(ii) make
loans or advances to the Company or to any Restricted Subsidiary of the Company;
or

 

(iii) transfer
any of their respective property or assets to the Company or to any Restricted
Subsidiary of the Company.

 

(b) The
restrictions in paragraph
(a) above,
however, will not apply to encumbrances or restrictions existing under or by
reason of:

 

(i) applicable
law, regulations or order;

 

(ii) customary
provisions restricting subletting or assignment of any lease governing a
leasehold interest of any Restricted Subsidiary of the Company;

 

(iii) Indebtedness
or any other contractual requirements (including pursuant to any corporate
governance documents in the nature of a charter or by-laws) of a Securitization
Subsidiary arising in connection with a Qualified Securitization Transaction,
provided, that
any such encumbrances and restrictions apply only to such Securitization
Subsidiary;

 

(iv) any
agreement in effect on the Issue Date as any such agreement is in effect on such
date;

 

(v) any
agreement relating to any Indebtedness incurred by such Restricted Subsidiary
prior to the date on which such Restricted Subsidiary became a Subsidiary of the
Company and outstanding on such date and not incurred in anticipation or
contemplation of becoming a Subsidiary of the Company; provided that
such encumbrance or restriction shall not apply to any assets of the Company or
its Restricted Subsidiaries other than such Restricted Subsidiary; 

 

E-98

EXHIBIT
4.35 (continued)

(vi) this
Indenture, the Securities and the International Guarantee or any other
Subsidiary Guarantee.

 

(vii) restrictions
relating to any Lien permitted under this Indenture imposed by the holder of
such Lien;

 

(viii) restrictions
imposed under any agreement to sell assets permitted under this Indenture to any
Person pending the closing of such sale;

 

(ix) any other
agreement governing Indebtedness entered into after the Issue Date that contains
encumbrances and restrictions that are not materially more restrictive with
respect to any Restricted Subsidiary than those in effect on the Issue Date with
respect to that Restricted Subsidiary pursuant to agreements in effect on the
Issue Date; 

 

(x) customary
provisions in partnership agreements, limited liability company organizational
governance documents, joint venture agreements and other similar agreements
entered into in the ordinary course of business that restrict the transfer of
ownership interests in such partnership, limited liability company, joint
venture or similar Person;

 

(xi) Indebtedness
incurred in compliance with paragaph (r) of
Section
3.10 that
impose restrictions of the nature described in clause (v) above on
the assets acquired;

 

(xii) restrictions
on cash or other deposits or net worth imposed by suppliers or landlords under
contracts entered into in the ordinary course of business;

 

(xiii) encumbrances
or restrictions contained in Indebtedness of Restricted Subsidiaries permitted
to be incurred under paragraph (t) of
Section
3.10;
provided that any
such encumbrances or restrictions are ordinary and customary with respect to the
type of Indebtedness being incurred under the relevant circumstances and do not
materially impair the Company’s ability to make payment or the Securities when
due; and

 

(xiv) any
encumbrances or restrictions imposed by any amendments or refinancings of the
contracts, instruments or obligations referred to in clauses (i) through
(xiii) above;
provided that
such amendments or refinancings are no more materially restrictive with respect
to such encumbrances and restrictions than those prior to such amendment or
refinancing.

 

Section
3.16. Limitation
on Transactions with Affiliates.

 

(a) The
Company will not, and will not cause or permit any of its Restricted
Subsidiaries to:

 

(i) sell,
lease, transfer or otherwise dispose of any of its property or assets
to,

 

E-99

EXHIBIT
4.35 (continued)

(ii) purchase
any property or assets from,

 

(iii) make any
Investment in, or

 

(iv) enter
into or amend or extend any contract, agreement or understanding with or for the
benefit of, any Affiliate of the Company or of any Subsidiary (an “Affiliate
Transaction”),

 

other
than Affiliate Transactions that are on terms that are fair and reasonable to
the Company or such Restricted Subsidiary of the Company and that are no less
favorable to the Company or such Restricted Subsidiary of the Company than those
that could be obtained in a comparable arm’s length transaction by the Company
or such Restricted Subsidiary of the Company from an unaffiliated party;
provided, that if
the Company or any Restricted Subsidiary of the Company enters into an Affiliate
Transaction or series of Affiliate Transactions involving or having an aggregate
value of more than $30.0 million, a majority of the disinterested members
of the Board of Directors of the Company or a committee thereof shall, prior to
the consummation of such Affiliate Transaction, have determined (as evidenced by
a resolution thereof) that such Affiliate Transaction meets the foregoing
standard.

 

(b) The
restrictions in paragraph
(a) above
shall not apply to:

 

(i) any
transaction between Restricted Subsidiaries of the Company, or between the
Company and any Restricted Subsidiary of the Company if such transaction is not
otherwise prohibited by the terms of this Indenture;

 

(ii) transactions
entered into pursuant to the terms of the Master Intercompany Agreements, the
Tax Allocation Agreement or the Support Agreement;

 

(iii) transactions
entered into in the ordinary course of business;

 

(iv) Qualified
Securitization Transactions;

 

(v) reasonable
fees and compensation paid to and advances of expenses to and indemnity provided
on behalf of officers, directors, employees or consultants of the Company or any
Subsidiary as determined in good faith by the Company’s Board of Directors or
senior management;

 

(vi) any
agreement as in effect as of the Issue Date or any amendment thereto or any
transaction contemplated thereby (including pursuant to any amendment thereto)
or in any replacement agreement thereto so long as any such amendment or
replacement agreement is not more disadvantageous to the Holders in any material
respect than the original agreement as in effect on the Issue Date;

 

(vii) Restricted
Payments and Permitted Investments permitted by this Indenture;

 

E-100

EXHIBIT
4.35 (continued)

(viii) loans or
advances to employees or consultants in the ordinary course of business and
consistent with past practices in an aggregate amount outstanding at any time
not to exceed $10.0 million;

 

(ix) joint
venture partners or purchasers or sellers of goods or services, in each case in
the ordinary course of business (including, without limitation, pursuant to
joint venture agreements) and otherwise in compliance with the terms of this
Indenture which are fair to the Company or its Restricted Subsidiaries, in the
reasonable determination of the senior management of the Company, or are on
terms at least as favorable as might reasonably have been obtained at such time
from an unaffiliated party; and

 

(x) any
employment or compensation arrangement entered into by the Company or any of its
Restricted Subsidiaries in the ordinary course of business that is not otherwise
prohibited by this Indenture.

 

Section
3.17. Limitation
on Guarantees by Restricted Subsidiaries.

 

(a) The
Company shall not cause or permit any of its Restricted Subsidiaries, directly
or indirectly, to guarantee the payment of any Indebtedness of the Company,
which, in the aggregate, together with all other Indebtedness of the Company
that is guaranteed by Restricted Subsidiaries, does not exceed
$35.0 million, unless such Restricted Subsidiary of the Company
simultaneously executes and delivers a supplemental indenture to this Indenture
providing for the guarantee of payment of the Securities by such Restricted
Subsidiary of the Company; provided that any
guarantee by a Subsidiary Guarantor of such other Indebtedness:

 

(i) (A) (1) is
unsecured or (2) is secured and (I) in the case of any such guarantee
of Indebtedness of the Company ranking pari passu with the Securities, the
Subsidiary Guarantees are secured equally and ratably with any Liens securing
such guarantee and (II) in the case of any such guarantee of Indebtedness
of the Company subordinated to the Securities, the relevant Subsidiary
Guarantees are secured on a basis ranking prior to the Liens securing such
guarantee and

 

(B) (1) in
the case of any such guarantee of Indebtedness of the Company subordinated or
junior to the Securities (whether pursuant to its terms or by operation of law),
such guarantee is subordinated pursuant to a written agreement to the relevant
Subsidiary Guarantees at least to the same extent and in the same manner as such
other Indebtedness is subordinated to the Securities, or (2) the Subsidiary
Guarantees are not subordinated or junior to any Indebtedness of such Subsidiary
Guarantor; and

 

(ii) such
Subsidiary Guarantor waives, and agrees it will not in any manner whatsoever
claim or take the benefit or advantage of, any rights of reimbursement,
indemnity or subrogation or any other rights against the Company or any other
Subsidiary of the Company as a result of any payment by it under such Subsidiary
Guarantees.

 

E-101

EXHIBIT
4.35 (continued)

(b) Notwithstanding
the foregoing, any Subsidiary Guarantee shall provide by its terms that it shall
be automatically and unconditionally released and discharged upon either
(a) the unconditional release or discharge of such Subsidiary Guarantor’s
guarantees of all other Indebtedness of the Company (other than a release
resulting from payment under such Subsidiary Guarantor’s guarantees) or
(b) any sale, exchange or transfer, to any Person not an Affiliate of the
Company, of the Capital Stock of such Subsidiary Guarantor, such that such
Subsidiary Guarantor ceases to be a Subsidiary of the Company, or all or
substantially all of the assets of such Subsidiary Guarantor, pursuant to a
transaction which is in compliance with all of the terms of this
Indenture.

 

(c) The
Company shall cause each Restricted Subsidiary of the Company that guarantees
the payment of any Indebtedness of the Company, which, in the aggregate,
together with all other Indebtedness of the Company that is guaranteed by
Restricted Subsidiaries of the Company, exceeds $35 million, after the Issue
Date, to execute and deliver to the Trustee, promptly upon any such formation or
acquisition (i) a supplemental indenture in form and substance satisfactory to
the Trustee which subjects such subsidiary to the provisions of this Indenture
as a Subsidiary Guarantor, and (ii) an Opinion of Counsel to the effect that
such supplemental indenture has been duly authorized and executed by such
subsidiary and constitutes the legal, valid, binding and enforceable obligation
of such subsidiary (subject to such customary exceptions concerning fraudulent
conveyance laws, creditors’ rights and equitable principles as may be acceptable
to the Trustee in its discretion).

 

ARTICLE
IV

 

CONSOLIDATION,
MERGER OR SALE BY THE COMPANY

 

Section
4.1. Consolidation,
Merger or Sale of Assets Permitted.

 

(a) The
Company will not, in a single transaction or series of related transactions,
consolidate or merge with or into, or sell, assign, transfer, lease, convey or
otherwise dispose of all or substantially all of the Company’s and its
Restricted Subsidiaries’ assets (determined on a consolidated basis) to any
Person unless:

 

(i) either
(A) the Company shall be the surviving or continuing corporation or
(B) the Person (if other than the Company) formed by such consolidation or
into which the Company is merged or the Person which acquires by conveyance,
transfer or lease the properties and assets of the Company and its Restricted
Subsidiaries substantially as an entirety (1) shall be a corporation,
limited liability company or partnership organized and validly existing under
the laws of the United States or any State thereof or the District of Columbia
and (2) shall expressly assume, by supplemental indenture (in form and
substance satisfactory to the Trustee), executed and delivered to the Trustee,
the due and punctual payment of the principal of, and premium, if any, and
interest on all of the Securities and the performance of every covenant of the
Securities and this Indenture on the part of the Company to be performed or
observed;

 

E-102

EXHIBIT
4.35 (continued)

(ii) immediately
after giving effect to such transaction and the assumption contemplated by
clause (i)(B)(2) above
(including giving effect to any Indebtedness and Acquired Indebtedness incurred
or anticipated to be incurred in connection with or in respect of such
transaction), the Company (in the case of clause (A) of the
foregoing clause (i)) or such
Person (in the case of clause (2) thereof)
could incur at least $1.00 of additional Indebtedness pursuant to paragraph (a) of
Section
3.10
herein;

 

(iii) immediately
before and after giving effect to such transaction and the assumption
contemplated by clause (i)(B)(2) above
(including giving effect to any Indebtedness and Acquired Indebtedness incurred
or anticipated to be incurred in connection with or in respect of the
transaction) no Default and no Event of Default shall have occurred or be
continuing; and

 

(iv) the
Company or such Person shall have delivered to the Trustee (A) an Officers’
Certificate and an Opinion of Counsel, each stating that such consolidation,
merger, conveyance, transfer or lease and, if a supplemental indenture is
required in connection with such transaction, such supplemental indenture,
comply with this provision of this Indenture and that all conditions precedent
in this Indenture relating to such transaction have been satisfied.

 

(b) Notwithstanding
paragraph
(a)
above:

 

(i) a
Restricted Subsidiary of the Company may consolidate with, or merge with or
into, or sell, assign, transfer, lease, convey or otherwise dispose of all or
substantially all of its assets to, the Company or another Restricted Subsidiary
of the Company;

 

(ii) a series
of transactions involving the sale of Receivables or interests therein by a
Securitization Subsidiary in connection with a Qualified Securitization
Transaction shall not be deemed to be the sale of all or substantially all of
the Company’s assets to the extent such transactions are consummated in the
ordinary course of business; 

 

(iii) the
provisions of clause (i) of
paragraph
(a) above
shall not prohibit the Company or any Restricted Subsidiary from selling,
assigning, transferring, leasing, conveying or otherwise disposing of all or
substantially all of its assets to a Permitted Joint Venture in a transaction
entered into in compliance with Section
3.12 herein;
and

 

(iv) the
provisions of paragraph
(a)(ii) above
shall not apply to the Company and its Restricted Subsidiaries after such time
as the conditions set forth in Section
3.1 herein
are satisfied.

 

For
purposes of the foregoing, the transfer (by lease, assignment, sale or
otherwise, in a single transaction or series of transactions) of all or
substantially all of the properties or assets of

 

E-103

EXHIBIT
4.35 (continued)

one or
more Restricted Subsidiaries of the Company, the Capital Stock of which
constitutes all or substantially all of the properties and assets of the
Company, shall be deemed to be the transfer of all or substantially all of the
properties and assets of the Company.

 

Upon any
such consolidation, merger, conveyance, lease or transfer in accordance with
this Section
4.1, the
successor Person formed by such consolidation or into which the Company is
merged or to which such conveyance, lease or transfer is made will succeed to,
and be substituted for, and may exercise every right and power of, the Company
under this Indenture with the same effect as if such successor had been named as
the Company therein, and thereafter (except in the case of a sale, assignment,
transfer, lease, conveyance or other disposition) the predecessor corporation
will be relieved of all further obligations and covenants under this Indenture
and the Securities.

 

ARTICLE
V

 

REDEMPTION
OF SECURITIES

 

Section
5.1. Applicability
of Article. The
Securities shall be redeemable in accordance with their terms and in accordance
with this Article V.

 

Section
5.2. 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 the case of any redemption at the election of
the Company of less than all the Securities, 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
Redemption Price, of the principal amount of Securities to be
redeemed.

 

Section
5.3. Selection
of Securities to be Redeemed. If less
than all the Securities are to be redeemed, the particular Securities to be
redeemed will be selected not more than 60 days prior to the redemption date by
the Trustee in compliance with any applicable rules of the principal U.S.
securities exchange, if any, on which the Securities are listed or, if the
Securities are not listed on a U.S. securities exchange or if there are no
applicable rules, on a pro rata basis, by lot or by such other method as such
Trustee will deem appropriate; provided that the
unredeemed portion of the principal amount of any Security shall be in an
authorized denomination (which shall not be less than the minimum authorized
denomination) for such Security. The Trustee shall make the selection from the
Securities that are Outstanding that have not previously been called for
redemption and may provide for the selection for redemption of portions (equal
to the minimum authorized denomination for the Securities, or any integral
multiple of $1,000 in excess thereof) of the principal amount of the Securities
of a denomination larger than the minimum authorized denomination for
Securities.

 

The
Trustee shall promptly notify the Company 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. If the Company shall so
direct, Securities registered in the name of the Company, any Affiliate of the
Company or any Subsidiary of the Company thereof shall not be included in the
Securities selected for redemption.

 

E-104

EXHIBIT
4.35 (continued)

For
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 amount of such Securities which has been or is to be
redeemed.

 

Section
5.4. Notice of
Redemption. At
least 30 but no more than 60 days before any redemption date the Company will
deliver written notice of such redemption to the Trustee and mail a notice of
redemption first-class postage prepaid to each holder of Securities to be
redeemed at its registered address.

 

All
notices of redemption shall state:

 

(a) the
Redemption Date;

 

(b) the
Redemption Price;

 

(c) if less
than all of the Outstanding Securities are to be redeemed, the identification
(and in the case of partial redemption, the principal amounts) of the particular
Security or Securities to be redeemed;

 

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

 

(e) the Place
of Payment where such Securities are to be surrendered for payment for the
Redemption Price;

 

(f) that
Securities called for redemption must be surrendered to the Paying Agent to
collect the Redemption Price;

 

(g) that, on
the Redemption Date, the Redemption Price will become due and payable upon each
such Security, or the portion thereof, to be redeemed and, if applicable, that
interest thereon will cease to accrue on and after said date; and

 

(h) the
CUSIP, ISIN or Common Code number, if any, of the Securities.

 

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

 

Section
5.5. Deposit
of Redemption Price. On or
prior to any Redemption Date, the Company shall deposit with the Trustee or with
a Paying Agent (or, if the Company is acting as its own Paying Agent, segregate
and hold in trust as provided in Section 2.4 herein) an amount of money
sufficient to pay on the Redemption Date the Redemption Price of, and (unless
the Redemption Date shall be an interest payment date) interest accrued to the
Redemption Date on, all Securities or portions thereof which are to be redeemed
on that date.

 

E-105

EXHIBIT
4.35 (continued)

Section
5.6. Securities
Payable on Redemption Date. Notice
of redemption having been given as aforesaid, the Securities so to be redeemed
shall, on the Redemption Date, become due and payable at the Redemption Price
therein specified, and from and after such date (unless the Company shall
default in the payment of the Redemption Price and accrued interest) such
Securities shall cease to bear interest. Upon surrender of any such Security,
for redemption in accordance with said notice, such Security shall be paid by
the Company at the Redemption Price, together with accrued interest to the
Redemption Date; provided,
however, that
installments of interest whose Stated Maturity is on or prior to the Redemption
Date shall be payable to the Holders of such Securities, or one or more
predecessor Securities, registered as such at the close of business on the
relevant record dates according to their terms.

 

If any
Security called for redemption shall not be so paid upon surrender thereof for
redemption, the principal (and premium, if any) shall, until paid, bear interest
from the Redemption Date at the rate prescribed therefor in the
Security.

 

Section
5.7. Securities
Redeemed in Part. Upon
surrender of a Security that is redeemed in part at the office or agency of the
Company maintained for such purpose pursuant to Section 2.3 herein (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), the Company
shall execute and the Trustee shall authenticate and deliver to the Holder of
that Security, without service charge, a new Security or Securities, having the
same form, terms and Stated Maturity, in any authorized denomination equal in
aggregate principal amount to the unredeemed portion of the principal amount of
the Security surrendered.

 

Section
5.8. Optional
Redemption. Except
as described in this Section 5.8, the Securities are not redeemable until March
1, 2009. On and after March 1, 2009, the Company may redeem all or, from time to
time, a part of the Securities, at the following Redemption Prices (expressed as
a percentage of principal amount) plus accrued and unpaid interest on the
Securities, if any, to the applicable Redemption Date (subject to the right of
Holders of record on the relevant record date to receive interest due on the
relevant interest payment date), if redeemed during the twelve-month period
beginning on March 1 of the years indicted below:

 

	
      Year
	
      Percentage

	
      

    	
      

    
	
      2009
	
      103.125%

	
      2010
	
      101.563%

	
      2011
	
      100.000%

Prior to
March 1, 2008, the Company may on any one or more occasions redeem up to 35% of
the aggregate principal amount of the Securities with the Net Cash Proceeds of
one or more Public Equity Offerings at a redemption price of 106.25% of the
principal amount thereof, plus accrued and unpaid interest, if any, to the
Redemption Date (subject to the right of holders of record on the relevant
record date to receive interest due on the relevant interest payment date);
provided
that

 

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EXHIBIT
4.35 (continued)

	 	
      (1)
	
      at
      least 65% of the aggregate principal amount of the Securities remains
      outstanding after each such redemption; and

 

	 	
      (2)
	
      the
      redemption occurs within 60 days after the closing of such Public Equity
      Offering.

 

If the
optional redemption date is on or after an interest record date and on or before
the related interest payment date, the accrued and unpaid interest, if any, will
be paid to the Person in whose name the Security is registered at the close of
business, on such record date, and no additional interest will be payable to
holders whose Security will be subject to redemption by the Company. Any
redemption pursuant to this Section
5.8 shall be
made pursuant to the provisions of Section
5.1 through
5.7 herein.

 

Section
5.9. Offer to
Repurchase Upon a Change of Control.

 

(a) If a
Change of Control occurs, each Holder shall have the right to require the
Company to repurchase all or any part (equal to $1,000 or an integral multiple
of $1,000) of that Holder’s Securities pursuant to the Change of Control offer
on the terms set forth in this Indenture (a “Change
of Control Offer”). In
the Change of Control Offer, the Company shall offer a Change of Control Payment
in cash equal to 101% of the aggregate principal amount of Securities
repurchased plus accrued and unpaid interest on the Securities repurchased to
the date of purchase. Within 30 days following any Change of Control, the
Company shall mail a notice to each Holder stating:

 

(i) the
transaction or transactions that constitute the Change of Control and Ratings
Event;

 

(ii) that the
Change of Control Offer is being made pursuant to this Section
5.9 and that
all Securities tendered shall be accepted for payment;

 

(iii) the
purchase price and the purchase date, which date shall be no earlier than 30
days and no later than 60 days from the date the notice is mailed (the
“Change
of Control Payment Date”);

 

(iv) that any
Security not tendered shall continue to accrue interest;

 

(v) that,
unless the Company defaults in the payment of the Change of Control Payment, all
Securities accepted for payment pursuant to the Change of Control Offer shall
cease to accrue interest after the Change of Control Payment Date;

 

(vi) that
Holders electing to have any Securities purchased pursuant to a Change of
Control Offer shall be required to surrender the Securities, with the form
entitled “Option of Holder to Elect Purchase” on the reverse of the Securities
completed, to the Paying Agent at the address specified in the notice prior to
the close of business on the third Business Day preceding the Change of Control
Payment Date;

 

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EXHIBIT
4.35 (continued)

(vii) that
Holders shall be entitled to withdraw their election if the Paying Agent
receives, not later than the close of business on the second Business Day
preceding the Change of Control Payment Date, a telegram, telex, facsimile
transmission or letter setting forth the name of the Holder, the principal
amount of Securities delivered for purchase, and a statement that such Holder is
withdrawing his election to have the Securities purchased; and

 

(viii) that
Holders whose Securities are being purchased only in part shall be issued new
Securities equal in principal amount to the unpurchased portion of the
Securities surrendered, which unpurchased portion must be equal to $1,000 in
principal amount or an integral multiple thereof.

 

The
Company shall comply with the requirements of Rule 14e-1 under the Exchange Act
and any other securities laws and regulations thereunder to the extent those
laws and regulations are applicable in connection with the repurchase of the
Securities as a result of a Change of Control. To the extent that the provisions
of any securities laws or regulations conflict with the Change of Control
provisions of this Indenture, the Company shall comply with the applicable
securities laws and regulations and will not be deemed to have breached its
obligations under the Change of Control provisions of this Indenture by virtue
of such conflict.

 

(b) On the
Change of Control Payment Date, the Company shall, to the extent
lawful:

 

(i) accept
for payment all Securities or portions of Securities properly tendered pursuant
to the Change of Control offer;

 

(ii) deposit
with the Paying Agent an amount equal to the Change of Control Payment in
respect of all Securities or portions of Securities properly tendered;
and

 

(iii) deliver
or cause to be delivered to the Trustee the Securities so accepted together with
an Officers’ Certificate stating the aggregate principal amount of Securities or
portions of Securities being purchased by the Company.

 

The
Paying Agent shall promptly mail to each Holder of Securities properly tendered
the Change of Control Payment for such Securities, and the Trustee shall
promptly authenticate and mail (or cause to be transferred by book entry) to
each Holder a new Security equal in principal amount to any unpurchased portion
of the Securities surrendered, if any; provided that
each new Security will be in a principal amount of $1,000 or an integral
multiple of $1,000.

 

The
Company shall publicly announce the results of the Change of Control Offer on or
as soon as practicable after the Change of Control Payment Date.

 

The
provisions described above that require the Company to make a Change of Control
Offer following a Change of Control will be applicable regardless of whether any
other provisions of this Indenture are applicable.

 

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EXHIBIT
4.35 (continued)

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

 

ARTICLE
VI

 

DEFAULTS
AND REMEDIES

 

Section
6.1. Events of
Default. An
“Event of Default” occurs with respect to the Securities if (whatever the reason
for such Event of Default and whether it shall be voluntary or involuntary or be
effected by operation of law or pursuant to any judgment, decree or order of any
court or any order, rule or regulation of any administrative or governmental
body):

 

(a) default
in the payment of principal of, or premium, if any, on any Security when due at
maturity, upon repurchase, upon acceleration or otherwise, including, without
limitation, failure of the Company to repurchase any Security on the date
required following a Change of Control; or

 

(b) default
in the payment of any installment of interest on any Security when due and
continuance of such Default for 30 days or more; or

 

(c) failure
to observe, perform or comply with Section
4.1;
or

 

(d) default
(other than a default set forth in paragraphs
(a),
(b) and
(c) above)
in the performance of, or breach of, any other covenant or warranty of the
Company or of any Restricted Subsidiary in this Indenture, or in the Securities
and failure to remedy such default or breach within a period of 30 days
after written notice from the Trustee or the Holders of at least 25% in
aggregate principal amount of the then outstanding Securities; or

 

(e) default
under any mortgage, indenture or instrument under which there may be issued or
by which there may be secured or evidenced any Indebtedness for money borrowed
by the Company or any Subsidiary of the Company (or the payment of which is
guaranteed by the Company or any Restricted Subsidiary of the Company), which
default is caused by a failure to pay principal of or premium, if any, on such
Indebtedness upon its stated maturity or which default results in the
acceleration of such Indebtedness prior to its express maturity and the
principal amount of any such Indebtedness, together with the principal amount of
any other such Indebtedness the maturity of which has been so accelerated,
aggregates $50.0 million or more and such acceleration has not been
rescinded or annulled or such Indebtedness discharged in full within
30 days; or

 

(f) the entry
by a court of competent jurisdiction of one or more judgments, orders or decrees
against the Company or any Subsidiary of the Company or any of their respective
property or assets in an aggregate amount in excess of $50.0 million, which
judgments, orders or decrees have not been vacated, discharged, satisfied or
stayed pending appeal within 30 days from the entry thereof and with
respect to which legal enforcement proceedings have been commenced;

 

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EXHIBIT
4.35 (continued)

(g) the
Company or a Material Subsidiary, pursuant to or within the meaning of any
Bankruptcy Law, (i) commences a voluntary case or proceeding, (ii) consents to
the entry of an order for relief against it in an involuntary case or
proceeding, (iii) consents to the appointment of a Custodian of it or for all or
substantially all of its property, (iv) makes a general assignment for the
benefit of its creditors, (v) makes an admission in writing of its inability to
pay its debts generally as they become due or (vi) takes corporate action in
furtherance of any such action; or

 

(h) a court
of competent jurisdiction enters an order or decree under any Bankruptcy Law
that (i) is for relief against the Company or a Material Subsidiary, in an
involuntary case, (ii) adjudges the Company or a Material Subsidiary as bankrupt
or insolvent, or approves as properly filed a petition seeking reorganization,
arrangement, and adjustment or composition of or in respect of the Company or a
Material Subsidiary, or appoints a Custodian of the Company or a Material
Subsidiary, or for all or substantially all of its property, or (iii) orders the
liquidation of the Company or a Material Subsidiary and the decree remains
unstayed and in effect for 60 days.

 

The
Company shall deliver to the Trustee, as soon as practicable (and in any event
within five Business Days), written notice in the form of an Officers’
Certificate with an executive officer of any Default, its status and what action
the Company is taking or proposes to take with respect thereto.

 

As used
in this Indenture, the term “Bankruptcy
Law” means
Title 11, U.S. Code, or any similar federal or state bankruptcy, insolvency,
reorganization or other law for the relief of debtors. As used in this
Indenture, the term “Custodian” means
any receiver, trustee, assignee, liquidator or similar official under any
Bankruptcy Law.

 

Section
6.2. Acceleration;
Rescission and Annulment. If an
Event of Default (other than an Event of Default specified in Section 6.1(g) or
(h) above involving the Company) occurs and is continuing, then and in every
such case the Trustee or the Holders of not less than 25% in aggregate principal
amount of the then outstanding Securities may, and the Trustee shall upon the
request of Holders of not less than 25% in aggregate principal amount of the
Securities then outstanding, declare the unpaid principal of, premium, if any,
and accrued and unpaid interest on all the Securities then outstanding to be due
and payable, by a notice in writing to the Company (and to the Trustee, if given
by Holders) and upon such declaration such principal amount, premium, if any,
and accrued and unpaid interest will become immediately due and payable,
notwithstanding anything contained in this Indenture or the Securities to the
contrary. If an Event of Default specified in Section 6.1(g) or (h) above
involving the Company occurs, all unpaid principal of, and premium, if any, and
accrued and unpaid interest on the Securities then outstanding will ipso facto
become due and payable.

 

The
Holders of a majority in aggregate principal amount of the Securities then
outstanding by notice to the Trustee may rescind an acceleration of the
Securities and its 

 

E-110

EXHIBIT
4.35 (continued)

consequences
if all existing Events of Default (other than the nonpayment of principal of and
premium, if any, and interest on the Securities which has become due solely by
virtue of such acceleration) have been cured or waived and if the rescission
would not conflict with any judgment or decree. No such rescission shall affect
any subsequent Default or impair any right consequent thereto.

 

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

 

The
Company covenants that if:

 

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

 

(b) default
is made in the payment of the principal of (or premium, if any, on) any Security
at the Maturity thereof, the Company will, upon demand of the Trustee, pay to
it, for the benefit of the Holder of such Security, the whole amount then due
and payable on such Security for principal, premium, if any, and interest, if
any, and, to the extent that payment of such interest shall be legally
enforceable, interest on any overdue principal, premium, if any, and on any
overdue interest, if any, at the rate or rates prescribed therefor in such
Security and, in addition thereto, such further amount as shall be sufficient to
cover the costs and expenses of collection, including the reasonable
compensation, expenses, disbursements and advances of the Trustee, its agents
and counsel.

 

If an
Event of Default with respect to the Securities 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 by such appropriate judicial proceedings as
the Trustee shall deem necessary to protect and enforce any such rights, whether
for the specific enforcement of any covenant or agreement in this Indenture or
in aid of the exercise of any power granted herein, or to secure any other
proper remedy.

 

Section
6.4. Trustee
May File Proofs of Claim. The
Trustee may file such proofs of claim and other papers or documents and take
such actions authorized under the Trust Indenture Act as may be necessary or
advisable in order to have the claims of the Trustee and the Holders of
Securities allowed in any judicial proceedings relating to the Company (or any
other obligor upon the Securities), its creditors or its property. In
particular, the Trustee shall be authorized to collect and receive any moneys or
other property payable or deliverable on any such claims and to distribute the
same; and any custodian, receiver, assignee, trustee, liquidator, sequestrator
or other similar official in any such judicial proceeding is hereby authorized
by each Holder to make such payments to the Trustee and, in the event that the
Trustee shall consent to the making of such payments directly to the Holders, to
pay to the Trustee any amount due it for the reasonable compensation, expenses,
disbursements and advances of the Trustee, its agents and counsel, and any other
amounts due the Trustee under Section 7.9 herein.

 

Section
6.5. Trustee
May Enforce Claims Without Possession of Securities. All
rights of action and claims under this Indenture or the Securities may be
prosecuted and enforced by 

 

E-111

EXHIBIT
4.35 (continued)

the
Trustee, in its own name as an express trust, without the possession of any of
the Securities or the production thereof in any proceeding relating thereto and
any recovery of judgment shall, after provision for the reasonable fees and
expenses of the Trustee and its counsel, be for the ratable benefit of the
Holders of the Securities in respect to which judgment was
recovered.

 

Section
6.6. Delay or
Omission Not Waiver. No
delay or omission by the Trustee or any Holder of any Securities to exercise any
right or remedy accruing upon an Event of Default shall impair any such right or
remedy or constitute a waiver of or acquiescence in any such Event of
Default.

 

Section
6.7. Waiver of
Past Defaults. In
addition to the provisions of Section 6.2 herein, the Holders of a majority in
aggregate principal amount of Outstanding Securities by written notice to the
Trustee may waive on behalf of the Holders of all Securities a past Default or
Event of Default and its consequences except (a) a Default or Event of Default
in the payment of the principal of, or premium, if any, or interest, if any, on
any Security or (b) an Event of Default resulting from the breach of a covenant
or provision hereof which pursuant to Section 9.2 herein cannot be amended or
modified without the consent of the Holder of each Outstanding Security
adversely 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.

 

Section
6.8. Control
by Majority. The
Holders of a majority in aggregate principal amount of the Outstanding
Securities 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 it with respect to the Securities; provided,
however, that
(a) the Trustee may refuse to follow any direction that conflicts with law or
this Indenture (b) the Trustee may refuse to follow any direction that is
prejudicial to the rights of the Holders of Securities not consenting or that
would in the good faith judgment of the Trustee have a substantial likelihood of
involving the Trustee in personal liability and (c) the Trustee may take any
other action deemed proper by the Trustee which is not inconsistent with such
direction. Prior to the taking of any action hereunder, the Trustee shall be
entitled to reasonable indemnification satisfactory to the Trustee against all
losses and expenses caused by taking or not taking such action. This paragraph
shall be in lieu of Section 316(a)(1)(A) of the Trust Indenture Act and such
Section 316(a)(1)(A) is hereby expressly excluded from this Indenture, as
permitted by the Trust Indenture Act.

 

Section
6.9. Limitation
on Suits by Holders. No
Holder of any Security 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:

 

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

 

(b) the
Holders of at least 25% in aggregate principal amount of the Outstanding
Securities have made a written request to the Trustee to institute proceedings
in respect of such Event of Default in its own name as Trustee
hereunder;

 

E-112

EXHIBIT
4.35 (continued)

(c) such
Holder or Holders have offered to the Trustee indemnity satisfactory to the
Trustee against any loss, liability or expense to be, or which may be, incurred
by the Trustee in pursuing the remedy;

 

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

 

(e) during
such 60 day period, the Holders of a majority in aggregate principal amount of
the Outstanding Securities have not given to the Trustee a direction
inconsistent with such written request.

 

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

 

Section
6.10. Rights of
Holders to Receive Payment.
Notwithstanding any other provision of this Indenture, but subject to Section
3.2 herein, the right of any Holder of a Security to receive payment of
principal of, premium, if any, and, subject to Sections 2.1, 2.3 and 2.12
herein, interest, if any, on the Security, on or after the respective due dates
expressed in the Security (or, in case of redemption, on the redemption dates),
or, subject to Section 6.9 herein, to bring suit for the enforcement of any such
payment on or after such respective dates, shall not be impaired or affected
without the consent of such Holder.

 

Section
6.11. Application
of Money Collected. If the
Trustee collects any money pursuant to this Article, it shall pay out the money
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, premium, if any, or
interest, if any, upon presentation of the Securities and the notation thereon
of the payment if only partially paid and upon surrender thereof if fully
paid:

 

First: to
the Trustee for amounts due under Section
7.9
herein;

 

Second:
to Holders of Securities in respect of which or for the benefit of which such
money has been collected for amounts due and unpaid on such Securities for
principal of, premium, if any, and interest, if any, ratably, without preference
or priority of any kind, according to the amounts due and payable on such
Securities for principal, premium, if any, and interest, if any, respectively;
and

 

Third: to
the Company.

 

The
Trustee may fix a record date and payment date for any payment to Holders
pursuant to this Section
6.11. At
least 15 days before such record date, the Trustee shall mail to each Holder and
the Company a notice that states the record date, the payment date and the
amount to be paid.

 

Section
6.12. Restoration
of Rights and Remedies. If
the Trustee or any Holder has instituted any proceeding to enforce any right or
remedy under this Indenture and such 

 

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EXHIBIT
4.35 (continued)

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, subject
to any determination in such proceeding, the Company, the Trustee and the
Holders shall be restored severally and respectively to their former positions
hereunder and thereafter all rights and remedies of the Trustee and the Holders
shall continue as though no such proceeding had been instituted.

 

Section
6.13. Rights
and Remedies Cumulative. Except
as otherwise provided with respect to the replacement or payment of mutilated,
destroyed, lost or stolen Securities in the last paragraph of Section 2.9
herein, no right or remedy herein conferred upon or reserved to the Trustee or
the Holders is intended to be exclusive of any other right or remedy, and every
right and remedy shall, to the extent permitted by law, be cumulative and in
addition to every other right and remedy given hereunder or now or hereafter
existing at law or in equity or otherwise. The assertion or employment of any
existing right or remedy hereunder, or otherwise, shall not prevent the
concurrent assertion or employment of any other appropriate right or
remedy.

 

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

 

Section
6.15. Undertaking
for Costs. In any
suit for the enforcement of any right or remedy under this Indenture or in any
suit against the Trustee for any action taken or omitted by it as Trustee, a
court in its discretion may require the filing by any party litigant in the suit
of an undertaking to pay the costs of the suit, and the court in its discretion
may assess reasonable costs, including reasonable attorneys’ fees and expenses,
against any party litigant in the suit having due regard to the merits and good
faith of the claims or defenses made by the party litigant.

 

ARTICLE
VII

 

TRUSTEE

 

Section
7.1. Certain
Duties and Responsibilities of the Trustee.

 

(a) Except
during the continuance of an Event of Default, the Trustee’s duties and
responsibilities under this Indenture shall be governed by Section 315(a) of the
Trust Indenture Act.

 

(b) In case
an Event of Default has occurred and is continuing with respect to the
Securities, the Trustee shall exercise the rights and powers vested in it by
this Indenture with respect to the Securities, and shall use the same degree of
care and skill in their exercise, as a prudent person would exercise or use
under the circumstances in the conduct of his own affairs.

 

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EXHIBIT
4.35 (continued)

(c) No
provision of this Indenture shall be construed to relieve the Trustee from
liability for its own negligent action, its own negligent failure to act, or its
own willful misconduct, except that this subsection shall not be construed to
limit the effect of paragraph (a) of this
Section
7.1; the
Trustee shall not be liable for any error of judgment made in good faith by a
Responsible Officer, unless it shall be proved that the Trustee was negligent in
ascertaining the pertinent facts; and the Trustee shall not be liable with
respect to any action taken or omitted to be taken by it in good faith in
accordance with the direction of the Holders in accordance with Section
6.8 herein
relating to the time, method and place of conducting any proceeding for any
remedy available to the Trustee, or exercising any trust or power conferred upon
the Trustee, under this Indenture.

 

Section
7.2. Rights of
Trustee. Subject
to the provisions of the Trust Indenture Act:

 

(a) the
Trustee may conclusively rely and shall be protected in acting or refraining
from acting upon any document (whether in its original or facsimile form)
believed by it to be genuine and to have been signed or presented by the proper
party or parties. The Trustee need not investigate any fact or matter stated in
the document;

 

(b) any
request or direction of the Company mentioned herein shall be sufficiently
evidenced by a Company Request or Company Order and any resolution of the Board
of Directors may be sufficiently evidenced by a Board Resolution;

 

(c) 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 be herein specifically
prescribed) may, in the absence of bad faith on its part, conclusively rely upon
an Officers’ Certificate;

 

(d) 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;

 

(e) the
Trustee may act through agents or attorneys and shall not be responsible for the
misconduct or negligence of any agent or attorney appointed with due
care;

 

(f) the
Trustee shall not be liable for any action it takes or omits to take in good
faith which it believes to be authorized or within its rights or
powers;

 

(g) the
Trustee shall not be required 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 its rights or powers;

 

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EXHIBIT
4.35 (continued)

(h) 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, note, other
evidence of indebtedness or other paper or document, but the Trustee, in its
discretion, may make such further inquiry or investigation into such facts or
matters as it may see fit, and, if the Trustee shall determine to make such
further inquiry or investigation it shall be entitled to examine the books,
records and premises of the Company, personally or by agent or attorney at the
expense of the Company and shall incur no liability of any kind by reason of
such inquiry or investigation;

 

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

 

(j) whether
or not therein expressly so provided, every provision of this Indenture relating
to the conduct or affecting the liability of or affording protection to the
Trustee shall be subject to the provisions of this Section
7.2;
and

 

(k) 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 to
each agent, custodian and other Person employed to act hereunder.

 

Section
7.3. Trustee
May Hold Securities. The
Trustee, any Paying Agent, any Registrar or any other agent of the Company in
its individual or any other capacity, may become the owner or pledgee of
Securities and, subject to Sections 310(b) and 311 of the Trust Indenture Act,
may otherwise deal with the Company, an Affiliate of the Company or Subsidiary
of the Company with the same rights it would have if it were not Trustee, Paying
Agent, Registrar or such other agent.

 

Section
7.4. Money
Held in Trust. Money
held by the Trustee in trust hereunder need not be segregated from other funds
except to the extent required by law. The Trustee shall be under no liability
for interest on any money received by it hereunder except as otherwise agreed
upon in writing with the Company.

 

Section
7.5. Trustee’s
Disclaimer. The
recitals contained herein and in the Securities, except the Trustee’s
certificate of authentication, shall be taken as the statements of the Company,
and the Trustee assumes no responsibility for their correctness. The Trustee
makes no representation as to the validity or adequacy of this Indenture or the
Securities or any coupon. The Trustee shall not be accountable for the Company’s
use of the proceeds from the Securities or for monies paid over to the Company
pursuant to this Indenture.

 

Section
7.6. Notice of
Defaults. If a
Default occurs and is continuing with respect to the Securities and if it is
actually known to a Responsible Officer of the Trustee, the Trustee shall,
within 90 days after it occurs, transmit by mail to the Holders of Securities,
in the manner 

 

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EXHIBIT
4.35 (continued)

and to
the extent provided in Section 313(c) of the Trust Indenture Act, notice of all
Defaults known to it unless such Default shall have been cured or waived;
provided,
however, that
except in the case of a Default in payment on the Securities, the Trustee may
withhold the notice if and so long as its board of directors, its executive
committee or a committee of its Responsible Officers in good faith determines
that withholding such notice is in the interests of Holders of Securities; and
provided,
further, that in
the case of any Default of the character specified in Section 6.1(b) herein with
respect to Securities, no such notice to Holder shall be given until at least 30
days after the occurrence thereof.

 

Section
7.7. Reports
by Trustee to Holders. Within
60 days after each May 15 of each year commencing with the first May 15 after
the Issue Date, the Trustee shall transmit by mail to all Holders of Securities
as provided in Section 313(c) of the Trust Indenture Act a brief report dated as
of such May 15 if required by and in compliance with Section 313(a) of the Trust
Indenture Act. The Trustee shall also comply with Section 313(b) of the Trust
Indenture Act, if applicable. A copy of each such report required pursuant to
Section 313(a) or 313(b) of the Trust Indenture Act 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 when the Securities are
listed on, or delisted from, any stock exchange.

 

Section
7.8. Securityholder
Lists. The
Trustee shall preserve in as current a form as is reasonably practicable the
most recent list available to it of the names and addresses of Holders of the
Securities. If the Trustee is not the Registrar, the Company shall furnish to
the Trustee semiannually on or before the last day of June and December in each
year, and at such other times as the Trustee may request in writing, a list, in
such form and as of such date as the Trustee may reasonably require containing
all the information in the possession or control of the Registrar, the Company
or any of its Paying Agents other than the Trustee as to the names and addresses
of Holders of the Securities.

 

Section
7.9. Compensation
and Indemnity.

 

(a) Each of
the Company and the Guarantor, jointly and severally, shall pay to the Trustee
from time to time such reasonable compensation for its services as the Company
and the Trustee shall agree in writing from time to time. The Trustee’s
compensation shall not be limited by any law on compensation of a trustee of an
express trust. The Company shall reimburse the Trustee upon request for all
reasonable out-of-pocket expenses incurred by it in connection with the
performance of its duties under this Indenture. Such expenses shall include the
reasonable compensation and expenses of the Trustee’s agents and
counsel.

 

(b) Each of
the Company and the Guarantor, jointly and severally, shall fully indemnify the
Trustee or any Predecessor Trustee and their agents for, and hold them harmless
against, any and all loss, liability, damage, claim or reasonable expense
including legal fees and expenses and taxes (other than taxes based upon or
determined or measured by the income of the Trustee) incurred by it arising out
of or in connection with its acceptance or administration of the trust or trusts
hereunder, including the reasonable costs and expenses of defending itself
against 

 

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EXHIBIT
4.35 (continued)

any claim
or liability in connection with the exercise or performance of any of its powers
or duties hereunder. The Trustee shall notify the Company promptly of any claim
for which it may seek indemnity. The Company shall defend the claim and the
Trustee shall cooperate in the defense. The Company need not pay for any
settlement made without its consent, which consent shall not be unreasonably
withheld.

 

(c) The
Company need not reimburse any expense or indemnify against any loss, liability,
damage or claim incurred by the Trustee as determined by a court of competent
jurisdiction to have been caused by its own negligence or bad faith or willful
misconduct.

 

(d) To secure
the payment obligations of the Company pursuant to this Section, the Trustee
shall have a lien prior to the Securities on all money or property held or
collected by the Trustee, except that held in trust to pay principal, premium,
if any, and interest, if any, on particular Securities.

 

When the
Trustee incurs expenses or renders services in connection with an Event of
Default specified in Section
6.1(g) or
(h) herein,
the expenses (including the reasonable charges and expenses of its counsel) and
the compensation for the services are intended to constitute expenses of
administration under any applicable Federal or state bankruptcy, insolvency or
other similar law.

 

The
provisions of this Section shall survive the termination of this
Indenture.

 

Section
7.10. Replacement
of Trustee.

 

(a) The
resignation or removal of the Trustee and the appointment of a successor Trustee
shall become effective only upon the successor Trustee’s acceptance of
appointment as provided in Section
7.11
herein.

 

(b) The
Trustee may resign at any time with respect to the Securities by giving written
notice thereof to the Company.

 

(c) The
Holders of a majority in aggregate principal amount of the Outstanding
Securities may remove the Trustee by so notifying the Trustee and the Company
and may appoint a successor Trustee with the Company’s consent.

 

(d) If at any
time:

 

(i) the
Trustee fails to comply with Section 310(b) of the Trust Indenture Act after
written request therefor by the Company or by any Holder who has been a bona
fide Holder of a Security for at least six months; or

 

(ii) the
Trustee shall cease to be eligible under Section
7.12 herein
or Section 310(a) of the Trust Indenture Act and shall fail to resign after
written request therefor by the Company or by any Holder of a Security who has
been a bona fide Holder of a Security for at least six months; or

 

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EXHIBIT
4.35 (continued)

(iii) the
Trustee becomes incapable of acting, is adjudged a bankrupt or an insolvent or a
receiver or public officer takes charge of the Trustee or its property or
affairs for the purpose of rehabilitation, conservation or liquidation, then, in
any such case, (A) the Company by or pursuant to a Board Resolution may remove
the Trustee with respect to all Securities, or (B) subject to Section
315(e) of the Trust Indenture Act, any Holder who has been a bona fide Holder of
a Security 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 and the appointment of a successor
Trustee or Trustees.

 

(e) If the
instrument of acceptance by a successor Trustee required by Section
7.11 herein
shall not have been delivered to the Trustee within 30 days after the giving of
such notice of resignation or removal, the Trustee resigning or 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 the
Securities.

 

(f) If the
Trustee resigns or is removed or if a vacancy exists in the office of Trustee
for any reason, the Company, by or pursuant to a Board Resolution, shall
promptly appoint a successor Trustee and shall comply with the applicable
requirements of Section
7.11 herein.
If, within one year after such resignation, removal or incapability, or the
occurrence of such vacancy, a successor Trustee shall be appointed by the
Holders of a majority in principal amount of the Outstanding Securities
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
7.11 herein,
become the successor Trustee with respect to the Securities and to that extent
supersede the successor Trustee appointed by the Company. If no successor
Trustee shall have been so appointed by the Company or the Holders and accepted
appointment in the manner required by Section
7.11 herein,
any Holder who has been a bona fide Holder of a Security 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.

 

Section
7.11. Acceptance
of Appointment by Successor.

 

(a) In case
of the appointment hereunder of a successor Trustee, every such successor
Trustee shall execute, acknowledge and deliver to the Company and to the
retiring Trustee an instrument accepting such appointment. Thereupon, the
resignation or removal of the retiring Trustee shall become effective, and the
successor Trustee, without further act, deed or conveyance, shall become vested
with all the rights, powers and duties of the retiring Trustee; but, on the
request of the Company or the successor Trustee, such retiring Trustee shall,
upon payment of its charges, execute and deliver an instrument transferring to
such successor Trustee all the rights, powers and trusts of the retiring Trustee
and shall duly assign, transfer and deliver to such successor Trustee all
property and money held by such retiring Trustee hereunder.

 

(b) Upon
request of any such successor Trustee, the Company shall execute any and all
instruments for more fully and certainly vesting in and confirming to the
successor Trustee all such rights, powers and trusts referred to in paragraph
(a) of this
Section
7.11.

 

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EXHIBIT
4.35 (continued)

(c) No
successor Trustee shall accept its appointment unless at the time of such
acceptance such successor Trustee shall be qualified and eligible under the
Trust Indenture Act.

 

(d) The
Company shall give notice of each resignation and each removal of the Trustee
and each appointment of a successor Trustee in the manner provided for notices
to the Holders of Securities in Section
11.2 herein.
Each notice shall include the name of the successor Trustee and the address of
its Corporate Trust Office.

 

Section
7.12. Eligibility;
Disqualification. There
shall at all times be a Trustee hereunder which shall be eligible to act as
Trustee under Section 310(a)(1) of the Trust Indenture Act and shall have a
combined capital and surplus of at least $75,000,000. If such corporation
publishes reports of condition at least annually, pursuant to law or the
requirements of Federal, State, Territorial or District of Columbia supervising
or examining authority, then, for the purposes of this Section, the combined
capital and surplus of such corporation shall be deemed to be its combined
capital and surplus as set forth in its most recent report of condition so
published. 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 heretofore specified in this Article.

 

Section
7.13. 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 the corporate trust business of the
Trustee, shall be the successor of the Trustee hereunder, provided such
corporation shall be otherwise 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 successor by merger,
conversion or consolidation to such authenticating Trustee may adopt such
authentication and deliver the Securities so authenticated with the same effect
as if such successor Trustee had itself authenticated such
Securities.

 

Section
7.14. Appointment
of Authenticating Agent. The
Trustee may appoint an Authenticating Agent with respect to the Securities which
shall be authorized to act on behalf of the Trustee to authenticate Securities
issued upon original issue, exchange, registration of transfer or partial
redemption thereof, and Securities so authenticated shall be entitled to the
benefits of this Indenture and shall be valid and obligatory for all purposes as
if authenticated by the Trustee hereunder. Any such appointment shall be
evidenced by an instrument in writing signed by a Responsible Officer of the
Trustee, a copy of which instrument shall be promptly furnished to the Company.
Wherever reference is made in this Indenture to the authentication and delivery
of Securities by the Trustee or the Trustee’s certificate of authentication,
such reference shall be deemed to include authentication and delivery on behalf
of the Trustee by an Authenticating Agent and a certificate of authentication
executed on behalf of the Trustee by an Authenticating Agent. Each
Authenticating Agent shall be acceptable to the Company.

 

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EXHIBIT
4.35 (continued)

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

 

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

 

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

 

If an
appointment is made pursuant to this Section, the Securities may have endorsed
thereon, in addition to or in lieu of the Trustee’s certificate of
authentication, an alternate certificate of authentication substantially in the
following form:

 

This is
one of the Securities described in the within-mentioned Indenture.

 

_______________________________________

as
Trustee

by _________________________________

as
Authenticating Agent

by _________________________________

Authorized
Signatory

 

ARTICLE
VIII

 

DISCHARGE
OF INDENTURE; DEFEASANCE

 

Section
8.1. Termination
of Company’s Obligations Under this Indenture. This
Indenture shall upon a Company Request cease to be of further effect with
respect to the Securities (except as to any surviving rights of registration of
transfer or exchange of such 

 

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EXHIBIT
4.35 (continued)

Securities
and replacement of such Securities which may have been lost, stolen or mutilated
as herein expressly provided for) and the Trustee, at the expense of the
Company, shall execute proper instruments acknowledging satisfaction and
discharge of this Indenture with respect to such Securities when
either

 

(a) 

 

(i) all such
Securities previously authenticated and delivered (other than (A) such
Securities which have been lost, stolen or destroyed and which have been
replaced or paid, as provided in Section
2.9 herein,
and (B) such Securities 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
3.4 herein)
have been delivered to the Trustee for cancellation, or

 

(ii) all
Securities not theretofore delivered to the Trustee for cancellation have become
due and payable and the Company has irrevocably deposited or caused to be
deposited with the Trustee funds in an amount sufficient to pay and discharge
the entire Indebtedness of the Securities issued hereunder not theretofore
delivered to the Trustee for cancellation, for principal of, premium, if any,
and interest on the Securities issued hereunder to the date of deposit together
with irrevocable instructions from the Company directing the Trustee to apply
such funds to the payment thereof at maturity; or

 

(b) 

 

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

 

(ii) the
Company 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 have been complied
with.

 

Notwithstanding
the satisfaction and discharge of this Indenture, the obligation of the Company
to the Trustee and any predecessor Trustee under Section
7.9 herein,
the obligations of the Company to any Authenticating Agent under Section
7.14 herein
and, if money shall have been deposited with the Trustee pursuant to
clause (ii)
of
paragraph (a) of this
Section, the obligations of the Trustee under Section
7.1 herein
and the last paragraph of Section
3.4 herein
shall survive such satisfaction and discharge.

 

Section
8.2. Application
of Trust Funds. Subject
to the provisions of the last paragraph of Section 3.4 herein, all money
deposited with the Trustee pursuant to Section 8.1 herein shall be held in trust
and applied by it, in accordance with the provisions of the Securities 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, if any,
and interest, if any, for whose payment such money has been deposited with or
received by the Trustee, but such money need not be segregated from other funds
except to the extent required by law.

 

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EXHIBIT
4.35 (continued)

Section
8.3. Company’s
Option to Effect Defeasance or Covenant Defeasance. The
Company may at its option by or pursuant to Board Resolution, at any time, elect
to have Sections 8.4 or 8.5 herein be applied to such Outstanding Securities
upon compliance with the conditions set forth below in this
Article.

 

Section
8.4. Defeasance
and Discharge. Upon
the Company’s exercise of the option specified in Section 8.3 above applicable
to this Section, the Company shall be deemed to have been discharged from its
obligations with respect to such Securities on and after the date the conditions
set forth in Section 8.6 herein 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 Securities which
shall thereafter be deemed to be “Outstanding” only for the purposes of Section
8.7 herein and the other Sections of this Indenture referred to in clause (b) of
this Section, and to have satisfied all its other obligations under such
Securities and this Indenture insofar as such Securities are concerned (and the
Trustee, at the expense of the Company, shall on a Company Order execute proper
instruments acknowledging the same), except the following, which shall survive
until otherwise terminated or discharged hereunder: (a) the rights of Holders of
such Securities to receive, solely from the trust funds described in Section
8.6(a) herein and as more fully set forth in such Section, payments in respect
of the principal of, premium, if any, and interest, if any, on such Securities
when such payments are due; (b) the Company’s obligations with respect to such
Securities under Sections 2.3, 2.5, 2.9, 3.3 and 3.4 herein; (c) the rights,
powers, trusts, duties and immunities of the Trustee hereunder and (d) this
Article VIII. Subject to compliance with this Article VIII, the Company may
exercise its option under this Section notwithstanding the prior exercise of its
option under Section 8.5 herein with respect to such Securities. Following a
defeasance, payment of such Securities may not be accelerated because of an
Event of Default.

 

Section
8.5. Covenant
Defeasance. Upon
the Company’s exercise of the option specified in Section 8.3 herein applicable
to this Section, the Company shall be released from its obligations under
Article III (except as otherwise provided in Section 8.4 herein), Article IV and
Section 5.9 herein (and with respect to Section 3.7, shall be required to
certify only with respect to those covenants not
defeased pursuant to this Section
8.5) with respect to such Securities on and after the date the conditions set
forth in Section 8.6 herein are satisfied (hereinafter, “covenant defeasance”),
and such Securities 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 Article III (except as
otherwise provided in Section 8.4 herein), Article IV and Section 5.9 herein,
but shall continue to be deemed “Outstanding” for all other purposes hereunder.
For this purpose, such covenant defeasance means that the Company may omit to
comply with and shall have no liability in respect of any term, condition or
limitation set forth in any such Section or such other covenant, whether
directly or indirectly, by reason of any reference elsewhere herein to any such
Section or such other covenant or by reason of reference in any such Section or
such other covenant to any other provision herein or in any other document and
such omission to comply shall not constitute a Default or an Event of Default
under Section 6.1(c) herein or otherwise, but, except as specified above, the
remainder of this Indenture and such Securities shall be unaffected
thereby.

 

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EXHIBIT
4.35 (continued)

Section
8.6. Conditions
to Defeasance or Covenant Defeasance. The
following shall be the conditions to the application of Sections 8.4 or 8.5
herein to any Securities:

 

(a) The
Company shall have deposited or caused to be deposited irrevocably with the
Trustee (or another trustee satisfying the requirements of Section
7.12 herein
who shall agree to comply with, and shall be entitled to the benefits of, the
provisions of Sections
8.3 through
8.9
inclusive applicable to the Trustee, for purposes of such Sections also a
“Trustee”) as trust funds in trust for the purpose of making the payments
referred to in this Section
8.6(a),
specifically pledged as security for, and dedicated solely to, the benefit of
the Holders of such Securities, with instructions to the Trustee as to the
application thereof, (A) money in an amount, or (B) Government Obligations which
through the payment of interest, if any, and principal in respect thereof in
accordance with their terms will provide, not later than one day before the due
date of any payment referred to in this Section
8.6(a), money
in an amount or (C) a combination thereof in an amount sufficient, without
reinvestment, to pay and discharge, and which shall be applied by the Trustee to
pay and discharge the principal of, premium, if any, and interest, if any, on
such Securities on the Maturity of such principal or installment of principal or
interest, if any. Before such a deposit the Company may make arrangements
satisfactory to the Trustee for the redemption or purchase of Securities at a
future date or dates in accordance with Article
V which
shall be given effect in applying the foregoing.

 

(b) Such
defeasance or covenant defeasance shall not result in a breach or violation of,
or constitute a Default or Event of Default under, this Indenture or result in a
breach or violation of, or constitute a default under, any other material
agreement or instrument to which the Company is a party or by which it is bound,
in each case, on the date of such deposit pursuant to Section
8.6(a) above
(other than in each case a Default or default resulting solely from the
borrowing of funds to be applied to such deposit).

 

(c) In the
case of an election under Section
8.4 herein,
the Company shall have delivered to the Trustee an Officers’ Certificate and an
Opinion of Counsel to the effect that the Company has received from, or there
has been published by, the Internal Revenue Service a ruling to the effect that,
and based thereon such opinion shall confirm that, the Holders of such
Securities will not recognize income, gain or loss for Federal income tax
purposes as a result of such defeasance and will be subject to Federal income
tax on the same amount and in the same manner and at the same times, as would
have been the case if such deposit, defeasance and discharge had not
occurred.

 

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

 

(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
under Section
8.4 herein
or the covenant defeasance under Section
8.5 herein
(as the case may be) have been complied with.

 

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EXHIBIT
4.35 (continued)

(f) No
Default or Event of Default under Sections
6.1(g) or
(h) herein
with respect to such Securities shall have occurred and be continuing on the
date of such deposit and the Company shall have delivered to the Trustee an
Officers’ Certificate stating that the deposit was not made by it with the
intent of preferring the Holders over any of its creditors or with the intent of
defeating, hindering, delaying or defrauding any of its other
creditors.

 

(g) Such
defeasance or covenant defeasance shall not result in the trust arising from
such deposit constituting an investment company within the meaning of the
Investment Company Act of 1940 unless such trust shall be registered under such
Act or exempt from registration thereunder.

 

Notwithstanding
the foregoing, no Opinion of Counsel requested by paragraphs (c) or
(d) need be
delivered if at such time all outstanding Securities have been irrevocably
called for redemption.

 

Section
8.7. Deposited
Money and Government Obligations to Be Held in Trust. Subject
to the provisions of the last paragraph of Section 3.4 herein, all money and
Government Obligations (including the proceeds thereof) deposited with the
Trustee in respect of any Securities shall be held in trust and applied by the
Trustee, in accordance with the provisions of such Securities and this
Indenture, to the payment, either directly or through any Paying Agent
(including the Company acting as its own Paying Agent) as the Trustee may
determine, to the Holders of such Securities of all sums due and to become due
thereon in respect of principal, premium, if any, and interest, if any, but such
money need not be segregated from other funds except to the extent required by
law.

 

Section
8.8. Repayment
to Company. To the
extent permitted by the Financial Accounting Standards Board Statement of
Financial Accounting Standards No. 76, as amended or interpreted by the
Financial Accounting Standards Board from time to time, or any successor thereto
(“Standard No. 76”), or to the extent permitted by the Commission, the
Trustee shall, from time to time, take one or more of the following actions as
specified in a Company Request: (a) retransfer, reassign and deliver to the
Company any securities deposited with the Trustee pursuant to Section 8.6(a)
herein; provided that the
Company shall, in substitution therefor, simultaneously transfer, assign and
deliver to the Trustee other Governmental Obligations appropriate to satisfy the
Company’s obligations in respect of the relevant Securities; and (b) the Trustee
and Paying Agent shall promptly pay to the Company upon Company Request any
excess money or securities held by them at any time, including, without
limitation, any assets deposited with the Trustee pursuant to Section 8.6(a)
exceeding those necessary for the purposes of Section 8.6(a) herein. The Trustee
shall not take the actions described in subsections (a) and (b) of this Section
8.8 herein unless it shall have first received a written report of Deloitte
& Touche LLP, or another nationally recognized independent public accounting
firm, (i) expressing their opinion that the contemplated action is permitted by
Standard No. 76 or the Commission for transactions accounted for as
extinguishment of debt under the circumstances described in paragraph 3.c of
Standard No. 76 or any successor provision, and (ii) verifying the accuracy,
after giving effect to such action or actions, of the computations which
demonstrate that the amounts remaining to be earned on the Government
Obligations deposited with the Trustee pursuant to Section 8.6(a) will be
sufficient for purposes of Section 8.6(a) herein.

 

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EXHIBIT
4.35 (continued)

Section
8.9. Indemnity
for Government Obligations. The
Company shall pay, and shall indemnify the Trustee against, any tax, fee or
other charge imposed on or assessed against Government Obligations deposited
pursuant to this Article or the principal and interest, if any, and any other
amount received on such Government Obligations.

 

ARTICLE
IX

 

SUPPLEMENTAL
INDENTURES

 

Section
9.1. Supplemental
Indentures Without Consent of Holders. Without
the consent of any Holders, 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 indentures supplemental hereto, in form reasonably satisfactory to the
Trustee, for any of the following purposes:

 

(a) to
evidence the succession of another corporation to the Company and the assumption
by any such successor of the covenants and obligations of the Company herein and
in the Securities; or

 

(b) to add to
the covenants of the Company for the benefit of the Holders of the Securities or
to surrender any right or power herein conferred upon the Company; provided,
however, that in
respect of any such additional covenant such supplemental indenture may provide
for a particular period of grace after Default (which period may be shorter or
longer than that allowed in the case of other Defaults) or may limit the
remedies available to the Trustee upon such Default; or

 

(c) to add
any additional Events of Default with respect to the Securities; or

 

(d) to secure
the Securities; or

 

(e) to
evidence and provide for the acceptance of appointment hereunder by a successor
Trustee 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 trust
hereunder by the Trustee, pursuant to the requirements of Section
7.11 herein;
or

 

(f) if
allowed without penalty under applicable laws and regulations, to permit payment
in respect of the Securities in bearer form in the United States;
or

 

(g) to
correct or supplement any provision herein which may be inconsistent with any
other provision herein or to make any other provisions with respect to matters
or questions arising under this Indenture, provided such
action shall not adversely affect the interests of the Holders of Securities
affected thereby; or

 

E-126

EXHIBIT
4.35 (continued)

(h) to cure
an ambiguity or correct any mistake, provided such
action shall not adversely affect the interests of the Holders of Securities;
or

 

(i) to add a
Subsidiary Guarantor or remove a Subsidiary Guarantor, which, in accordance with
the terms of this Indenture, ceases to be liable in respect of its Subsidiary
Guarantee.

 

Section
9.2. Supplemental
Indentures with Consent of Holders. With
the written consent of the Holders of a majority of the aggregate principal
amount of the Outstanding Securities adversely affected by such supplemental
indenture, the Company, when authorized by or pursuant to a Board Resolution,
and the Trustee may enter into an indenture or indentures supplemental hereto to
add any provisions to or to change or eliminate any provisions of this Indenture
or of any other indenture supplemental hereto or to modify the rights of the
Holders of such Securities; provided,
however, that
without the consent of the Holder of each Outstanding Security affected thereby,
a supplemental indenture under this Section may not:

 

(a) change
the Stated Maturity of the principal of, or premium, if any, on, or any
installment of principal of or premium, if any, or interest, if any, on, any
Security, or reduce the principal amount thereof or the rate of interest thereon
or any premium payable upon the redemption, repurchase or repayment thereof, or
change the manner in which the amount of any principal thereof or premium, if
any, or interest, if any, thereon is determined, or change the Place of Payment
where or the currency in which any Security or any premium or the interest
thereon is payable, or impair the right to institute suit for the enforcement of
any such payment on or after the Stated Maturity thereof (or, in the case of
redemption, on or after the Redemption Date);

 

(b) reduce
the percentage in principal amount of the Outstanding Securities, 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 this Indenture;

 

(c) change
any obligation of the Company to maintain an office or agency in the places and
for the purposes specified in Section
3.3
herein;

 

(d) make any
change in Section
6.7 herein
or this Section
9.2 except
to increase any percentage or to provide that certain other provisions of this
Indenture cannot be modified or waived without the consent of the Holders of
each Outstanding Security affected thereby.

 

It is not
necessary under this Section
9.2 for the
Holders to consent to the particular form of any proposed supplemental
indenture, but it is sufficient if they consent to the substance
thereof.

 

Upon the
request of the Company, accompanied by an Officers’ Certificate and a Board
Resolution authorizing the execution of any such supplemental indenture, and
upon the filing with the Trustee of evidence of the consent of Holders as
aforesaid, the Trustee shall join with 

 

E-127

EXHIBIT
4.35 (continued)

the
Company in the execution of such supplemental indenture unless such supplemental
indenture affects the Trustee’s own rights, duties or immunities under this
Indenture or otherwise, in which case the Trustee may, but shall not be
obligated to, enter into such supplemental indenture.

 

Section
9.3. Compliance
with Trust Indenture Act. Every
amendment to this Indenture or the Securities shall be set forth in a
supplemental indenture that complies with the Trust Indenture Act as then in
effect.

 

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

 

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

 

ARTICLE
X

 

SUBSIDIARY
GUARANTEES

 

Section
10.1. Subsidiary
Guarantees.

 

(a) Subject
to the provisions of this Article
X, each
Subsidiary Guarantor, jointly and severally, hereby irrevocably and
unconditionally guarantees to each Holder of Securities and to the Trustee for
itself and on behalf of the Holders (i) the due and punctual payment of
principal of, premium, if any, and interest in full on each Security when and as
the same shall become due and payable whether at Stated Maturity, by declaration
of acceleration or otherwise, (ii) the due and punctual payment of interest on
the overdue principal of, premium, if any, and interest in full on the
Securities, to the extent permitted by law, and (iii) the due and punctual
performance of all other Obligations of the Company and the other Subsidiary
Guarantors to the Holders or the Trustee, including without limitation the
payment of fees, expenses, indemnification or other amounts, all in accordance
with the terms of the Securities and this Indenture. In case of the failure of
the Company punctually to make any such principal or interest payment or the
failure of the Company or any other Subsidiary Guarantor to perform any such
other Obligation, each Subsidiary Guarantor hereby agrees to cause any such
payment to be made punctually when and as the same shall become due and payable,
whether at Stated Maturity, by declaration of acceleration or otherwise, and as
if such payment were made by the Company and to perform any such other
Obligation of the Company immediately. Each Subsidiary Guarantor hereby further
agrees to pay any and all expenses (including reasonable counsel fees and
expenses) incurred by the Trustee or the Holders in enforcing any rights under

 

E-128

EXHIBIT
4.35 (continued)

these
Subsidiary Guarantees. The Subsidiary Guarantees under this Article
X are
guarantees of payment and not of collection.

 

(b) Each of
the Company and the Subsidiary Guarantors hereby waives diligence, presentment,
demand of payment, filing of claims with a court in the event of merger,
insolvency or bankruptcy of the Company or any other Subsidiary Guarantor, any
right to require a proceeding first against the Company or any other Subsidiary
Guarantor, protest or notice with respect to the Securities or the indebtedness
evidenced thereby and all demands whatsoever, and covenants that these
Subsidiary Guarantees will not be discharged except by complete performance of
the Obligations contained in the Securities and in this Indenture, or as
otherwise specifically provided therein and herein.

 

(c) Each
Subsidiary Guarantor hereby waives and relinquishes:

 

(i) any right
to require the Trustee, the Holders or the Company (each, a “Benefited
Party”) to
proceed against the Company, the Subsidiaries of the Company or any other Person
or to proceed against or exhaust any security held by a Benefited Party at any
time or to pursue any other remedy in any secured party’s power before
proceeding against the Subsidiary Guarantors;

 

(ii) any
defense that may arise by reason of the incapacity, lack of authority, death or
disability of any other Person or Persons or the failure of a Benefited Party to
file or enforce a claim against the estate (in administration, bankruptcy or any
other proceeding) of any other Person or Persons;

 

(iii) demand,
protest and notice of any kind (except as expressly required by this Indenture),
including but not limited to notice of the existence, creation or incurring of
any new or additional indebtedness or obligation or of any action or non-action
on the part of the Subsidiary Guarantors, the Company, the Subsidiaries of the
Company, any Benefited Party, any creditor of the Subsidiary Guarantors, the
Company or the Subsidiaries of the Company or on the part of any other Person
whomsoever in connection with any obligations the performance of which are
hereby guaranteed;

 

(iv) any
defense based upon an election of remedies by a Benefited Party, including but
not limited to an election to proceed against the Subsidiary Guarantors for
reimbursement;

 

(v) any
defense based upon any statute or rule of law which provides that the obligation
of a surety must be neither larger in amount nor in other respects more
burdensome than that of the principal;

 

(vi) any
defense arising because of a Benefited Party’s election, in any proceeding
instituted under the Bankruptcy Law, of the application of
Section 1111(b)(2) of the Bankruptcy Law; and

 

(vii) any
defense based on any borrowing or grant of a security interest under Section 364
of the Bankruptcy Law.

 

E-129

EXHIBIT
4.35 (continued)

(d) Each
Subsidiary Guarantor further agrees that, as between such Subsidiary Guarantor,
on the one hand, and Holders and the Trustee, on the other hand, (i) for
purposes of the relevant Subsidiary Guarantee, the maturity of the Obligations
guaranteed by such Subsidiary Guarantee may be accelerated as provided in
Article
VI herein,
notwithstanding any stay, injunction or other prohibition preventing such
acceleration in respect of the Obligations guaranteed thereby, and (ii) in the
event of any acceleration of such Obligations (whether or not due and payable)
such Obligations shall forthwith become due and payable by such Subsidiary
Guarantor for purposes of such Subsidiary Guarantee.

 

(e) The
Subsidiary Guarantees shall continue to be effective or shall be reinstated, as
the case may be, if at any time any payment, or any part thereof, of principal
of, premium, if any, or interest on any of the Securities is rescinded or must
otherwise be returned by the Holders or the Trustee upon the insolvency,
bankruptcy or reorganization of the Company or any of the Subsidiary Guarantors,
all as though such payment had not been made.

 

(f) Each
Subsidiary Guarantor shall be subrogated to all rights of the Holders against
the Company in respect of any amounts paid by such Subsidiary Guarantor pursuant
to the provisions of the Subsidiary Guarantees or this Indenture; provided,
however, that a
Subsidiary Guarantor shall not be entitled to enforce or to receive any payments
until the principal of, premium, if any, and interest on all Securities issued
hereunder shall have been paid in full.

 

Section
10.2. Obligations
of Subsidiary Guarantors Unconditional. Each
Subsidiary Guarantor hereby agrees that its Obligations hereunder shall be
Subsidiary Guarantees of payment and shall be unconditional, irrespective of and
unaffected by the validity, regularity or enforceability of the Securities or
this Indenture, or of any amendment thereto or hereto, the absence of any action
to enforce the same, the waiver or consent by any Holder or by the Trustee with
respect to any provisions thereof or of this Indenture, the entry of any
judgment against the Company or any other Subsidiary Guarantor or any action to
enforce the same or any other circumstance which might otherwise constitute a
legal or equitable discharge or defense of a Subsidiary Guarantor.

 

Section
10.3. Limitation
on Subsidiary Guarantors’ Liability. Each
Subsidiary Guarantor and by its acceptance hereof each Holder, hereby confirms
that it is the intention of all such parties that the Subsidiary Guarantee by
such Subsidiary Guarantor pursuant to its Subsidiary Guarantee not constitute a
fraudulent transfer or conveyance for purposes of the Bankruptcy Law, the
Uniform Fraudulent Conveyance Act, the Uniform Fraudulent Transfer Act or any
similar federal or state law. To effectuate the foregoing intention, the Holders
and such Subsidiary Guarantor hereby irrevocably agree that the Obligations of
such Subsidiary Guarantor under this Article X shall be limited to the maximum
amount as will, after giving effect to all other contingent and fixed
liabilities of such Subsidiary Guarantor and after giving effect to any
collections from or payments made by or on behalf of any other Subsidiary
Guarantor in respect of the Obligations of such other Subsidiary Guarantor under
this Article X, result in the Obligations of such Subsidiary Guarantor under its
Subsidiary Guarantee not constituting a fraudulent transfer or conveyance under
applicable federal or state law.

 

E-130

EXHIBIT
4.35 (continued)

Section
10.4. Releases
of Subsidiary Guarantees.

 

(a) If the
Securities are defeased in accordance with the terms of Article
VIII herein,
then each Subsidiary Guarantor shall be deemed to have been released from and
discharged of its obligations under its Subsidiary Guarantee as provided in
Article
VIII herein,
subject to the conditions stated therein.

 

(b) In the
event an entity that is a Subsidiary Guarantor is sold or disposed of (whether
by merger, consolidation, the sale of its Capital Stock such that the Subsidiary
Guarantor is no long a Subsidiary or the sale of all or substantially all of its
assets (other than by lease)) and whether or not such Subsidiary Guarantor is
the surviving corporation in such transaction to a Person which is not the
Company or a Restricted Subsidiary, then such entity shall cease to be a
Subsidiary Guarantor, whether or not a Default has occurred and is continuing if
the sale or other disposition is in compliance with Section
3.13
herein.

 

(c) Any
Subsidiary Guarantor not released from its obligations under its Subsidiary
Guarantee shall remain liable for the full amount of principal of, premium, if
any, and interest on the Securities and for the other obligations of the
Company, such Subsidiary Guarantor and any other Subsidiary Guarantor under this
Indenture as provided in this Article X.

 

Section
10.5. Release
of International Guarantee.
Notwithstanding other provisions of this Indenture, the Guarantor shall be
deemed to have been released from and discharged of its obligations under the
International Guarantee if, after giving effect to such release:

 

(a) each
Security will continue to be assigned an Investment Grade rating by both Rating
Agencies;

 

(b) no
Default has occurred and is continuing; and

 

(c) the
Company has outstanding no other Indebtedness, which at such time has an
aggregate outstanding principal amount in excess of $35 million that is
guaranteed by the Guarantor (other than the Securities and any other
Indebtedness whose guarantee by the Guarantor will be automatically released if
the International Guarantee is released).

 

Section
10.6. Application
of Certain Terms and Provisions to Subsidiary Guarantors.

 

(a) For
purposes of any provision of this Indenture which provides for the delivery by
any Subsidiary Guarantor of an Officers’ Certificate or an Opinion of Counsel or
both, the definitions of such terms in Section
1.1 shall
apply to such Subsidiary Guarantor as if references therein to the Company were
references to such Subsidiary Guarantor.

 

(b) Any
request, direction, order or demand which by any provision of this Indenture is
to be made by any Subsidiary Guarantor shall be sufficient if evidenced by a
Company Order; provided that the
definition of such term in Section
1.1 herein
shall apply to such Subsidiary Guarantor as if references therein to the Company
were references to such Subsidiary Guarantor.

 

E-131

EXHIBIT
4.35 (continued)

(c) Any
notice or demand which by any provision of this Indenture is required or
permitted to be given or served by the Trustee or by the Holders of Securities
to or on any Subsidiary Guarantor may be given or served as described in
Section
11.2
herein.

 

(d) Upon any
demand, request or application by any Subsidiary Guarantor to the Trustee to
take any action under this Indenture, such Subsidiary Guarantor shall furnish to
the Trustee such certificates and opinions as are required in Section
7.2 herein
as if all references therein to the Company were references to such Subsidiary
Guarantor.

 

ARTICLE
XI

 

MISCELLANEOUS

 

Section
11.1. Trust
Indenture Act Controls. If any
provision of this Indenture limits, qualifies or conflicts with another
provision which is required to be included in this Indenture by the TIA, the
provision required by the TIA shall control. Each Subsidiary Guarantor in
addition to performing its obligations under its Subsidiary Guarantee shall
perform such other obligations as may be imposed upon it with respect to this
Indenture under the TIA.

 

Section
11.2. Notices. Any
notice or communication shall be in writing, in the English language and
delivered in person or mailed by first-class mail or transmitted by facsimile
(with written confirmation of receipt) addressed as follows:

 

if to the
Company:

Navistar
International Corporation

4201
Winfield Road

Warrenville,
Illinois 60555

Attention:
Vice President and Treasurer

Facsimile:
(630) 753-2305

if to the
Trustee:

The Bank
of New York Trust Company, N.A.

2 North
LaSalle Street, Suite 1020

Chicago,
Illinois 60602

Attention:
Corporate Trust Administration

Facsimile:
(312) 827-8542

 

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

 

Where
this Indenture provides for notice to Securityholders of any event, such notice
shall be sufficiently given (unless otherwise herein expressly provided) if in
writing and mailed, first-class postage prepaid, to each Securityholder affected
by such event, at his address as it appears in the Security Register, not later
than the latest date (if any), and not earlier than the earliest date (if any),
prescribed for the giving of such notice.

 

E-132

EXHIBIT
4.35 (continued)

In any
case where notice to Securityholders is given by mail, neither the failure to
mail a notice or communication to a Securityholder nor any defect in any notice
so mailed shall affect its sufficiency with respect to other Securityholders. If
a notice or communication is mailed in the manner provided above, it is duly
given, whether or not the addressee receives it. If by reason of the suspension
of regular mail service or by reason of any other cause it shall be
impracticable to give such notice as provided above, then such notification as
shall be made with the approval of the Trustee shall constitute a sufficient
notification for every purpose hereunder.

 

Section
11.3. Communication
by Holders with other Holders
Securityholders may communicate pursuant to TIA §3l2(b) with other
Securityholders with respect to their rights under this Indenture or the
Securities. The Company, the Trustee, the Registrar and anyone else shall have
the protection of TIA §312(c).

 

Section
11.4. Certificate
and Opinion as to Conditions Precedent. Upon
any request or application by the Company to the Trustee to take or refrain from
taking any action under this Indenture, the Company shall furnish to the
Trustee:

 

(a) an
Officers’ Certificate in form and substance reasonably satisfactory to the
Trustee stating that, in the opinion of the signers, all conditions precedent,
if any, provided for in this Indenture relating to the proposed action have been
complied with; and

 

(b) an
Opinion of Counsel in form and substance reasonably satisfactory to the Trustee
stating that, in the opinion of such counsel, all such conditions precedent have
been complied with except that in the case of any such application or request as
to which the furnishing of such documents is specifically required by any
provision of this Indenture relating to such particular application or request,
no additional certificate or opinion need be furnished.

 

Section
11.5. Statements
Required in Certificate or Opinion. Each
certificate or opinion with respect to compliance with a covenant or condition
provided for in this Indenture shall include:

 

(a) a
statement that the individual making such certificate or opinion has read such
covenant or condition;

 

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

 

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

 

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

 

E-133

EXHIBIT
4.35 (continued)

In giving
such Opinion of Counsel, counsel may rely as to factual matters on an Officers’
Certificate or on certificates of public officials.

 

Section
11.6. When
Securities Disregarded. In
determining whether the Holders of the required principal amount of Securities
have concurred in any direction, waiver or consent, Securities owned by the
Company or by any Person directly or indirectly controlling or controlled by or
under direct or indirect common control with the Company shall be disregarded
and deemed not to be Outstanding, except that, for the purpose of determining
whether the Trustee shall be protected in relying on any such direction, waiver
or consent, only Securities which the Trustee knows are so owned shall be so
disregarded. Also, subject to the foregoing, only Securities Outstanding at the
time shall be considered in any such determination.

 

Section
11.7. Rules by
Trustee, Paying Agent and Registrar. The
Trustee may make reasonable rules for action by, or a meeting of,
Securityholders. The Registrar and the Paying Agent may make reasonable rules
for their functions.

 

Section
11.8. Legal
Holidays. In any
case where any interest payment date, Redemption Date, Stated Maturity or
Maturity of any Security shall not be a Business Day (each, a “Legal Holiday”),
then (notwithstanding any other provision of this Indenture or of any Security)
payment of principal, premium, if any, or interest, if any, need not be made on
such date, but may be made on the next succeeding Business Day with the same
force and effect as if made on such date; provided that no interest shall accrue
on the amount so payable for the period from and after such interest payment
date, Redemption Date, Stated Maturity or Maturity, as the case may be, if the
payment is made on the next succeeding Business Day.

 

Section
11.9. GOVERNING
LAW. THIS
INDENTURE, THE SECURITIES AND THE SUBSIDIARY GUARANTEE SHALL BE GOVERNED BY, AND
CONSTRUED IN ACCORDANCE WITH, THE INTERNAL LAWS OF THE STATE OF NEW YORK. THE
COMPANY AND EACH SUBSIDIARY GUARANTOR AGREES TO SUBMIT TO THE JURISDICTION OF
THE COURTS OF THE STATE OF NEW YORK, COUNTY OF NEW YORK, IN ANY ACTION OR
PROCEEDING ARISING OUT OF OR RELATING TO THIS INDENTURE, THE SECURITIES AND THE
SUBSIDIARY GUARANTEE.

 

Section
11.10. No
Recourse Against Others. An
incorporator, director, officer, employee, stockholder or controlling person, as
such, of each of the Company or any Subsidiary Guarantors shall not have any
liability for any obligations of the Company under the Securities, this
Indenture or the Subsidiary Guarantees or for any claim based on, in respect of
or by reason of such obligations or their creation. By accepting a Security,
each Securityholder shall waive and release all such liability. The waiver and
release shall be part of the consideration for the issue of the
Securities.

 

Section
11.11. Successors. All
agreements of the Company and the Subsidiary Guarantors in this Indenture and
the Securities shall bind their respective successors. All agreements of the
Trustee in this Indenture shall bind its successors.

 

E-134

EXHIBIT
4.35 (continued)

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

 

Section
11.13. Variable
Provisions. The
Company initially appoints the Trustee as U.S. Paying Agent and Registrar with
respect to any Global Securities.

 

Section
11.14. Qualification
of Indenture. The
Company shall qualify this Indenture under the TIA in accordance with the terms
and conditions of the Registration Rights Agreement and shall pay all reasonable
costs and expenses (including attorneys’ fees and expenses for the Company, the
Trustee and the Holders) incurred in connection therewith, including, but not
limited to, costs and expenses of qualification of this Indenture and the
Securities and printing this Indenture and the Securities. The Trustee shall be
entitled to receive from the Company any such Officers’ Certificates, Opinions
of Counsel or other documentation as it may reasonably request in connection
with any such qualification of this Indenture under the TIA.

 

Section
11.15. Table of
Contents; Headings. The
table of contents, cross-reference sheet and headings of the Articles and
Sections of this Indenture have been inserted for convenience of reference only,
are not intended to be considered a part hereof and shall not modify or restrict
any of the terms or provisions hereof.

 

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

 

Section
11.17. Benefits
of Indenture. Nothing
in this Indenture or in the Securities, expressed or implied, shall give to any
Person, other than the parties hereto and their successors hereunder and the
Holders, any benefit or any legal or equitable right, remedy or claim under this
Indenture.

 

* * *
*

E-135

EXHIBIT
4.35 (continued)

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

 

ISSUER:

NAVISTAR
INTERNATIONAL CORPORATION

By: /s/
Terry M. Endsley___________________

Name:
 Terry M.
Endsley

Title:
 Vice
President and Treasurer

TRUSTEE:

THE BANK
OF NEW YORK TRUST COMPANY, N.A., as Trustee

By: /s/
Daniel G. Donovan____________________

Name: D. G.
Donovan

Title: Vice
President

GUARANTOR:

INTERNATIONAL
TRUCK AND ENGINE CORPORATION

By: /s/
Terry M. Endsley_______________________

Name:
 Terry M.
Endsley

Title:
 Vice
President and Treasurer

E-136

EXHIBIT
4.35 (continued)

[Face
of Security]

 

FORM
OF SECURITY

 

EXHIBIT
A

 

THIS
GLOBAL SECURITY IS HELD BY THE DEPOSITARY (AS DEFINED IN THE INDENTURE GOVERNING
THIS SECURITY) OR ITS NOMINEE IN CUSTODY FOR THE BENEFIT OF THE BENEFICIAL
OWNERS HEREOF, AND IS NOT TRANSFERABLE TO ANY PERSON UNDER ANY CIRCUMSTANCES
EXCEPT THAT (I) THE TRUSTEE MAY MAKE SUCH NOTATIONS HEREON AS MAY BE REQUIRED
PURSUANT TO SECTION 2.6 OF THE INDENTURE, (II) THIS GLOBAL SECURITY MAY BE
EXCHANGED IN WHOLE BUT NOT IN PART PURSUANT TO SECTION 2.6(a) OF THE INDENTURE,
(III) THIS GLOBAL SECURITY MAY BE DELIVERED TO THE TRUSTEE FOR CANCELLATION
PURSUANT TO SECTION 2.11 OF THE INDENTURE AND (IV) THIS GLOBAL SECURITY MAY BE
TRANSFERRED TO A SUCCESSOR DEPOSITARY WITH THE PRIOR WRITTEN CONSENT OF THE
COMPANY.

 

THIS
SECURITY AND THE GUARANTEE ENDORSED HEREON HAVE NOT BEEN REGISTERED UNDER THE
SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), OR ANY STATE
SECURITIES LAWS. NEITHER THIS SECURITY NOR THE GUARANTEE ENDORSED HEREON NOR ANY
INTEREST OR PARTICIPATION HEREIN MAY BE OFFERED, SOLD, ASSIGNED, TRANSFERRED,
PLEDGED, ENCUMBERED OR OTHERWISE DISPOSED OF IN THE ABSENCE OF SUCH REGISTRATION
OR UNLESS SUCH TRANSACTION IS EXEMPT FROM, OR NOT SUBJECT TO, THE REGISTRATION
REQUIREMENTS OF THE SECURITIES ACT. THE HOLDER OF THIS SECURITY AND THE
GUARANTEE ENDORSED HEREON BY ITS ACCEPTANCE HEREOF AGREES TO OFFER, SELL OR
OTHERWISE TRANSFER SUCH SECURITY, PRIOR TO THE DATE WHICH IS TWO YEARS AFTER THE
LATER OF THE ORIGINAL ISSUE DATE HEREOF AND THE LAST DATE ON WHICH THE COMPANY
OR ANY AFFILIATE OF THE COMPANY WAS THE OWNER OF THIS SECURITY AND THE GUARANTEE
ENDORSED HEREON (OR ANY PREDECESSOR OF THIS SECURITY AND THE GUARANTEE ENDORSED
HEREON) (THE “RESALE RESTRICTION TERMINATION DATE”) ONLY (A) TO THE COMPANY OR
ANY SUBSIDIARY THEREOF, (B) PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT
UNDER THE SECURITIES ACT, (C) FOR SO LONG AS THE SECURITIES ARE ELIGIBLE FOR
RESALE PURSUANT TO RULE 144A UNDER THE SECURITIES ACT (“RULE 144A”), TO A PERSON
IT REASONABLY BELIEVES IS A “QUALIFIED INSTITUTIONAL BUYER” AS DEFINED IN RULE
144A THAT PURCHASES FOR ITS OWN ACCOUNT OR FOR THE ACCOUNT OF A QUALIFIED
INSTITUTIONAL BUYER TO WHOM NOTICE IS GIVEN THAT THE TRANSFER IS BEING MADE IN
RELIANCE ON RULE 144A, (D) PURSUANT TO OFFERS AND SALES TO NON-U.S. PERSONS THAT
OCCUR OUTSIDE 

 

E-137

EXHIBIT
4.35 (continued)

THE
UNITED STATES WITHIN THE MEANING OF REGULATION S UNDER THE SECURITIES ACT OR (E)
PURSUANT TO ANOTHER AVAILABLE EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF
THE SECURITIES ACT, SUBJECT TO THE COMPANY’S AND THE TRUSTEE’S RIGHT PRIOR TO
ANY SUCH OFFER, SALE OR TRANSFER (i) PURSUANT TO CLAUSE (D) PRIOR TO THE END OF
THE 40-DAY DISTRIBUTION COMPLIANCE PERIOD WITHIN THE MEANING OF REGULATION S
UNDER THE SECURITIES ACT OR PURSUANT TO CLAUSE (E) PRIOR TO THE RESALE
RESTRICTION TERMINATION DATE TO REQUIRE THE DELIVERY OF AN OPINION OF COUNSEL,
CERTIFICATION AND/OR OTHER INFORMATION SATISFACTORY TO EACH OF THEM, AND (ii) IN
EACH OF THE FOREGOING CASES, TO REQUIRE THAT A CERTIFICATE OF TRANSFER IN THE
FORM APPEARING ON THIS SECURITY IS COMPLETED AND DELIVERED BY THE TRANSFEROR TO
THE TRUSTEE. THIS LEGEND WILL BE REMOVED UPON THE REQUEST OF A HOLDER AFTER THE
RESALE RESTRICTION TERMINATION DATE.

 

E-138

EXHIBIT
4.35 (continued)

CUSIP 144A63934EAJ7

REG
SU6375FAD9

ISIN
 144AUS63934EAJ73

REG
SUSU6375FAD97

NAVISTAR
INTERNATIONAL CORPORATION

 

61⁄4%
Senior Note due 2012

 

No.
1$______________

NAVISTAR
INTERNATIONAL CORPORATION, a Delaware corporation (the “Company,” which
term includes any successor under the Indenture hereinafter referred to), for
value received, promises to pay Cede & Co., or its registered assigns, the
principal sum indicated on the Schedule of Increases or Decreases in Security
attached hereto, on March 1, 2012. This is a Global Security under the
Indenture hereinafter referred to.

 

Interest
Payment Dates: March 1 and September 1, commencing September 1,
2005.

 

Regular
Record Dates: February 15 and August 15.

 

Reference
is hereby made to the further provisions of this Security set forth on the
reverse hereof, which further provisions shall for all purposes have the same
effect as if set forth at this place.

 

E-139

EXHIBIT
4.35 (continued)

IN
WITNESS WHEREOF, the Company has caused this Security to be executed manually or
by facsimile by its duly authorized officers.

 

Dated:
March 2, 2005   NAVISTAR
INTERNATIONAL CORPORATION

 

By:
___________________________

Name:
 Terry M.
Endsley

Title:
 Vice
President and Treasurer

 

Certificate
of Authentication:

 

This is
one of the Securities described in the within-mentioned Indenture.

 

Dated:
March 2, 2005   THE BANK
OF NEW YORK TRUST COMPANY,
N.A., as Trustee

 

By:
___________________________

Name:

Title:

 

E-140

EXHIBIT
4.35 (continued)

[REVERSE
SIDE OF SECURITY]

 

NAVISTAR
INTERNATIONAL CORPORATION

 

61⁄4%
Senior Note due 2012

 

Capitalized
terms used herein but not defined shall have the meanings assigned to them in
the Indenture referred to below unless otherwise indicated.

 

	
      1.
	
      Principal
      and Interest.

 

Navistar
International Corporation, a Delaware corporation (such corporation and its
successors and assigns under the Indenture hereinafter referred to, being herein
called the “Company”),
promises to pay interest on the principal amount of this Security at a rate of
61⁄4% per annum from the date of issuance until repayment at maturity or
redemption. The Company will pay interest semiannually on March 1 and
September 1 of each year (each, an “Interest
Payment Date”),
commencing September 1, 2005. Interest on the Securities will accrue from the
most recent date to which interest has been paid or, if no interest has been
paid, from the Issue Date. Interest will be computed on the basis of a 360-day
year of twelve 30-day months.

 

The
Company shall pay interest (including post-petition interest in any proceeding
under any Bankruptcy Law) on overdue principal and premium, if any, from time to
time on demand, to the extent permitted by law, at the rate borne by this
Security; it shall pay interest (including post-petition interest in any
proceeding under any Bankruptcy Law) on overdue installments of interest
(without regard to any applicable grace periods) from time to time on demand at
the same rate to the extent permitted by law.

 

	
      2.
	
      Method
      of Payment.

 

The
Company will pay interest on the principal amount of the Securities as provided
above on each Interest Payment Date, commencing September 1, 2005, to the
persons which are Holders (as reflected in the Register at the close of business
on the February 15 or August 15 immediately preceding the Interest Payment
Date), in each case, even if the Security is canceled on registration of
transfer or registration of exchange after such record date; provided that,
with respect to the payment of principal, the Company will make payment to the
Holder that surrenders this Security to a Paying Agent on or after March 1,
2012.

 

The
Company will pay principal, premium, if any, and interest in U.S. Dollars. If a
payment date is a date other than a Business Day at a place of payment, payment
may be made at that place on the next succeeding day that is a Business Day and
no interest shall accrue for the intervening period.

 

Principal
of, and premium, if any, and interest on, Definitive Securities will be payable,
and Definitive Securities may be presented for registration of transfer or
exchange, at the office or agency of the Company maintained for such purpose.
Principal of, and premium, if any, and 

 

E141

EXHIBIT
4.35 (continued)

interest
on, Global Securities will be payable by the Company through the Trustee to the
Book-Entry Depositary in immediately available funds. Holders of Definitive
Securities will be entitled to receive interest payments by wire transfer in
immediately available funds if appropriate wire transfer instructions have been
received in writing by the Trustee not less than 15 days prior to the applicable
Interest Payment Date. Such wire instructions, upon receipt by the Trustee,
shall remain in effect until revoked by such Holder. If wire instructions have
not been received by the Trustee with respect to any Holder of a Definitive
Security, payment of interest may be made by check in immediately available
funds mailed to such Holder at the address set forth upon the Register
maintained by the Registrar.

 

	
      3.
	
      Paying
      Agent and Registrar.

 

Initially,
The Bank of New York Trust Company, N.A., the Trustee under the Indenture, will
act as Trustee, Paying Agent and Registrar. The Company may appoint and change
the Paying Agent or transfer agent without notice to any Holder; provided that it
will at all times maintain a Paying Agent in The City of New York. The Company
or any wholly owned Subsidiary may act as a Paying Agent, Registrar,
co-registrar or transfer agent, subject to certain limitations.

 

	
      4.
	
      Indenture.

 

The
Company issued the Initial Securities under an Indenture, dated as of March 2,
2005 (the “Indenture”), among
the Company, International Truck and Engine Corporation (the “Guarantor”) and
The Bank of New York Trust Company, N.A., as trustee (the “Trustee”). The
terms of the Initial Securities include those stated in the Indenture and those
made part of the Indenture by reference to the Trust Indenture Act of 1939, as
amended (“TIA”). The
Initial Securities are subject to all such terms, and Holders are referred to
the Indenture and the TIA for a statement of all such terms. To the extent
permitted by applicable law, in the event of any inconsistency between the terms
of this Security and the terms of the Indenture, the terms of the Indenture
shall control.

 

	
      5.
	
      Subsidiary
      Guarantees.

 

The
Securities are guaranteed by the Guarantor, subject to the release of such
guarantees under certain circumstances, as provided in the Indenture. The
Securities may after the date hereof be entitled to certain additional
Subsidiary Guarantees made for the benefit of the Holders.

 

	
      6.
	
      Exchange
      Offer.

 

In
accordance with the terms of the Exchange and Registration Rights Agreement,
dated March 2, 2005, among the Company, the Guarantor and Banc of America
Securities LLC, Citigroup Global Markets Inc., J.P. Morgan Securities Inc.,
Credit Suisse First Boston LLC, Scotia Capital (USA) Inc., BNY Capital Markets,
Inc. and RBC Capital Markets Corporation (the “Registration
Rights Agreement”), if
the registered exchange offer (the “Registered
Exchange Offer”) is not
consummated on or prior to March 2, 2006 (a “Registration
Default”), then
the annual interest rate borne by the Securities will be increased by 0.5% from
March 2, 2006 until the Exchange Offer is consummated or the Shelf Registration
Statement is declared effective.

 

E142

EXHIBIT
4.35 (continued)

Notwithstanding
any other provision of the Indenture or this Security: (i) accrued and unpaid
interest on the Initial Securities being exchanged in the Exchange Offer shall
be due and payable on the next Interest Payment Date for the Exchange Securities
following the Exchange Offer and shall be paid to the Holder on the relevant
record date of the Exchange Securities issued in respect of the Initial
Securities being exchanged, and (ii) interest on the Initial Securities being
exchanged in the Exchange Offer shall cease to accrue on the date of completion
of the Exchange Offer and interest on the Exchange Securities to be issued in
the Exchange Offer shall accrue from the date of completion of the Exchange
Offer.

 

	
      7.
	
      Optional
      Redemption.

 

Except as
described in this Section 7, the Securities are not redeemable until March
1, 2009. On and after March 1, 2009, the Company may redeem all or, from time to
time, a part of the Securities upon not less than 30 nor more than 60 days’
notice, at the following Redemption Prices (expressed as a percentage of
principal amount) plus accrued and unpaid interest on the Securities, if any, to
the applicable Redemption Date (subject to the right of Holders of record on the
relevant record date to receive interest due on the relevant Interest Payment
Date), if redeemed during the twelve-month period beginning on March
1 of the
years indicated below:

 

	
      Year
	
      Percentage

	
      

    	
      

    
	
      2009
	
      103.125%

	
      2010
	
      101.563%

	
      2011
	
      100.000%

Prior to
March 1, 2008, the Company may on any one or more occasions redeem up to 35% of
the aggregate principal amount of the Securities with the Net Cash Proceeds of
one or more Public Equity Offerings at a redemption price of 106.25% of the
principal amount thereof, plus accrued and unpaid interest, if any, to the
Redemption Date (subject to the right of Holders of record on the relevant
record date to receive interest due on the relevant interest payment date);
provided
that

 

	 	
      (1)
	
      at
      least 65% of the aggregate principal amount of the Securities remains
      outstanding after each such redemption; and

 

	 	
      (2)
	
      the
      redemption occurs within 60 days after the closing of such Public Equity
      Offering.

 

If the
optional redemption date is on or after an interest record date and on or before
the related Interest Payment Date, the accrued and unpaid interest, if any, will
be paid to the Person in whose name the Securities is registered at the close of
business, on such record date, and no additional interest will be payable to
holders whose Securities will be subject to redemption by the
Company.

 

E-143

EXHIBIT
4.35 (continued)

In the
case of any partial redemption, selection of the Securities for redemption will
be made by the Trustee in compliance with the requirements of the principal
national securities exchange, if any, on which the Securities are listed or, if
the Securities are not so listed, then on a pro
rata basis,
by lot or by such other method as the Trustee shall deem to be fair and
appropriate (and in such manner as complies with applicable legal requirements)
provided that
(i) Securities and portions thereof that the Trustee selects shall be in
amounts of $1,000 or an integral multiple of $1,000 and (ii) no such
partial redemption shall reduce the portion of the principal amount of a
Security not redeemed to less than $1,000. If any Security is to be redeemed in
part only, the notice of redemption relating to such Security shall state the
portion of the principal amount thereof to be redeemed. A new Security in
principal amount equal to the unredeemed portion thereof will be issued in the
name of the Holder thereof upon cancellation of the original Security. On and
after the Redemption Date, interest will cease to accrue on Securities or
portions thereof called for redemption as long as the Company has deposited with
the Trustee or with a Paying Agent (or, if applicable, segregated and held in
trust) money sufficient to pay the Redemption Price of, and accrued interest on,
all the Securities which are to be redeemed on such date.

 

	
      8.
	
      Mandatory
      Redemption.

 

Except as
set forth in Section 9 below, the Company shall not be required to make
mandatory redemption or sinking fund payments with respect to the
Securities.

 

	
      9.
	
      Repurchase
      at Option of Holder.

 

If a
Change of Control occurs, each Holder shall have the right to require the
Company to repurchase all or any part (equal to $1,000 or an integral multiple
of $1,000) of that Holder’s Securities pursuant to the Change of Control offer
on the terms set forth in the Indenture (a “Change
of Control Offer”). In
the Change of Control Offer, the Company shall offer a Change of Control Payment
in cash equal to 101% of the aggregate principal amount of Securities
repurchased plus accrued and unpaid interest and liquidated damages, if any, on
the Securities repurchased to the date of purchase. Within 30 days following any
Change of Control, the Company shall mail a notice to each Holder as set forth
in the Indenture.

 

In the
event of certain Asset Dispositions and subject to certain limitations set forth
in the Indenture, the Company shall make an Offer to Purchase the outstanding
applicable issue of Securities at a purchase price in cash equal to 100% of
their principal amount plus any accrued and unpaid interest thereon to the
Purchase Date.

 

	
      10.
	
      Denominations;
      Transfer; Exchange.

 

The
Securities are in registered form without coupons in denominations of $1,000 of
principal amount and integral multiples of $1,000 in excess thereof. A Holder
may register the transfer or exchange of Securities in accordance with the
Indenture. The Registrar may require a Holder, among other things, to furnish
appropriate endorsements and transfer documents and the Company may require a
Holder to pay any taxes and fees required by law or permitted by the Indenture.
The Registrar need not register the transfer or exchange of any Securities
selected for 

 

E-144

EXHIBIT
4.35 (continued)

redemption.
Also, it need not register the transfer or exchange of any Securities for a
period beginning at the opening of 15 calendar days before the day of any
selection of Securities for redemption under Section 7 hereof and ending at the
close of business on the day of selection.

 

	
      11.
	
      Persons
      Deemed Owners.

 

The
registered Holder of a Security shall be treated as its owner for all
purposes.

 

	
      12.
	
      Unclaimed
      Money.

 

If money
for the payment of principal, premium, if any, or interest remains unclaimed for
two years, the Trustee and the Paying Agent will pay the money back to the
Company at its request. After that, Holders entitled to the money must look to
the Company for payment, unless an abandoned property law designates another
Person, and all liability of the Trustee and such Paying Agent with respect to
such money shall cease.

 

	
      13.
	
      Discharge
      Prior to Redemption or Maturity.

 

Subject
to certain conditions contained in the Indenture, at any time some or all of the
obligations under the Securities, the Subsidiary Guarantees and the Indenture
may be terminated if the Company deposits with the Trustee money and/or
Government Obligations sufficient to pay the principal of, and premium, if any,
and interest on, the Securities to redemption or stated maturity, as the case
may be.

 

	
      14.
	
      Amendment;
      Supplement; Waiver.

 

Subject
to certain exceptions as set forth in the Indenture, with the written consent of
the Holders of a majority of the aggregate principal amount of the Outstanding
Securities adversely affected by such supplemental indenture, the Company, when
authorized by or pursuant to a Board Resolution, and the Trustee may enter into
an indenture or supplemental indentures to add any provisions to or to change or
eliminate any provisions of the Indenture or of any other supplemental indenture
or to modify the rights of the Holders of such Securities. Without the consent
of any Holders, 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
supplemental indentures, in form reasonably satisfactory to the Trustee, to,
among other things, cure any ambiguity, omission, defect or inconsistency and
make any change that does not materially and adversely affect the rights of any
Holder. The Holders of a majority in aggregate principal amount of Outstanding
Securities by written notice to the Trustee may waive on behalf of the Holders
of all Securities a past Default or Event of Default and its consequences except
(i) a Default or Event of Default in the payment of the principal of, or
premium, if any, or interest, if any, on any Security or (ii) an Event of
Default resulting from the breach of a covenant or provision hereof which
pursuant to the Indenture cannot be amended or modified without the consent of
the Holder of each Outstanding Security adversely affected.

 

E-145

EXHIBIT
4.35 (continued)

	
      15.
	
      Restrictive
      Covenants.

 

The
Indenture imposes certain limitations on the ability of the Company and its
Restricted Subsidiaries, among other things, to create Liens, incur
Indebtedness, make Restricted Payments and make Asset Dispositions. In addition,
the Indenture imposes certain limitations on the ability of the Company to
engage in mergers and consolidations or transfers of all or substantially all of
its assets. The Indenture requires the Company to deliver to the Trustee, within
120 days after the end of each fiscal year of the Company (beginning with the
fiscal year next following the Issue Date), a certificate from an executive
officer, as to his or her knowledge of the Company’s compliance with all
conditions and covenants under the Indenture.

 

After
such time as: (i) the Securities have been assigned an Investment Grade rating
by both Rating Agencies; and (ii) no Default under the Indenture has occurred
and is continuing, and notwithstanding that the Securities may later cease to
have an Investment Grade rating by either or both Rating Agencies the Company
and its Restricted Subsidiaries will not be subject to certain
covenants.

 

	
      16.
	
      Defaults
      and Remedies.

 

The
Indenture provides that each of the following events constitutes an Event of
Default with respect to this Security: (i) default in the payment of principal
of, or premium, if any, on any Security when due at maturity, upon repurchase,
upon acceleration or otherwise, including, without limitation, failure of the
Company to repurchase any Security on the date required following a Change of
Control; (ii) default in the payment of any installment of interest on any
Security when due and continuance of such Default for 30 days or more;
(iii) failure to observe, perform or comply with any of the provisions of the
covenant imposing certain limitations on the ability of the Company to engage in
mergers and consolidations or transfers of all or substantially all of its
assets; (iv) default (other than a default set forth in clauses (i),
(ii) and (iii) above) in the performance of, or breach of, any other
covenant or warranty of the Company or of any Restricted Subsidiary in the
Indenture, or in the Notes and failure to remedy such default or breach within a
period of 30 days after written notice from the Trustee or the Holders of
at least 25% in aggregate principal amount of the then outstanding Notes; (v)
default under any mortgage, indenture or instrument under which there may be
issued or by which there may be secured or evidenced any Indebtedness for money
borrowed by the Company or any Subsidiary of the Company (or the payment of
which is guaranteed by the Company or any Restricted Subsidiary of the Company),
which default is caused by a failure to pay principal of or premium, if any, on
such Indebtedness upon its stated maturity or which default results in the
acceleration of such Indebtedness prior to its express maturity and the
principal amount of any such Indebtedness, together with the principal amount of
any other such Indebtedness the maturity of which has been so accelerated,
aggregates $50.0 million or more and such acceleration has not been
rescinded or annulled or such Indebtedness discharged in full within
30 days; (vi) the entry by a court of competent jurisdiction of one or more
judgments, orders or decrees against the Company or any Subsidiary of the
Company or any of their respective property or assets in an aggregate amount in
excess of $50.0 million, which judgments, orders or decrees have not been
vacated, discharged, satisfied or stayed pending appeal within 30 days

 

E-146

EXHIBIT
4.35 (continued)

from the
entry thereof and with respect to which legal enforcement proceedings have been
commenced; or (vii) certain events of bankruptcy, insolvency or reorganization
involving the Company or any Material Subsidiary of the Company.

 

If an
Event of Default occurs and is continuing, the principal amount hereof may be
declared due and payable in the manner and with the effect provided in the
Indenture. Upon such a declaration, such principal amount, premium, if any, and
accrued and unpaid interest will become immediately due and
payable.

 

If an
Event of Default described in clause (vii) above occurs, all unpaid principal
of, premium, if any, and accrued and unpaid interest on the Securities then
outstanding will ipso facto become due and payable.

 

	
      17.
	
      Trustee
      Dealings with the Company.

 

Subject
to certain limitations set forth in the Indenture, the Trustee under the
Indenture, in its individual or any other capacity, may make loans to, accept
deposits from and perform services for the Company or its Affiliates and may
otherwise deal with the Company or its Affiliates as if it were not the
Trustee.

 

	
      18.
	
      No
      Recourse Against Others.

 

An
incorporator, director, officer, employee, stockholder or controlling person, as
such, of each of the Company or any Subsidiary Guarantors shall not have any
liability for any obligations of the Company under the Securities, the Indenture
or the Subsidiary Guarantees or for any claim based on, in respect of or by
reason of such obligations or their creation. By accepting a Security, each
Securityholder shall waive and release all such liability. The waiver and
release shall be part of the consideration for the issue of the
Securities.

 

	
      19.
	
      Authentication.

 

This
Security shall not be valid until the Trustee (or authenticating agent) executes
the certificate of authentication on the other side of this
Security.

 

	
      20.
	
      Abbreviations.

 

Customary
abbreviations may be used in the name of a Holder or an assignee, such as: TEN
COM (= tenants in common), TEN ENT (= tenants by the entireties), JT TEN (=
joint tenants with right of survivorship and not as tenants in common), CUST (=
Custodian) and U/G/M/A (= Uniform Gifts to Minors Act).

 

E-147

EXHIBIT
4.35 (continued)

	
      21.
	
      CUSIP
      Numbers.

 

Pursuant
to a recommendation promulgated by the Committee on Uniform Security
Identification Procedures the Company has caused CUSIP numbers to be printed on
the Securities and has directed the Trustee to use CUSIP numbers in notices of
redemption as a convenience to Securityholders. No representation is made as to
the accuracy of such numbers either as printed on the Securities or as contained
in any notice of redemption and reliance may be placed only on the other
identification numbers placed thereon.

 

	
      22.
	
      GOVERNING
      LAW.

 

THIS
SECURITY SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE INTERNAL
LAWS OF THE STATE OF NEW YORK. THE COMPANY AND EACH SUBSIDIARY GUARANTOR AGREES
TO SUBMIT TO THE JURISDICTION OF THE COURTS OF THE STATE OF NEW YORK, COUNTY OF
NEW YORK IN ANY ACTION OR PROCEEDING ARISING OUT OF OR RELATING TO THIS
SECURITY.

 

	
      23.
	
      Successor
      Corporation.

 

In the
event a successor corporation assumes all the obligations of the Company under
the Securities and the Indenture, pursuant to the terms thereof, the Company
will be released from all such obligations.

 

The
Company will furnish to any Holder upon written request and without charge to
the Holder a copy of the Indenture which has in it the text of this Security.
Requests may be made to:

 

Navistar
International Corporation

4201
Winfield Road

Warrenville,
Illinois 60555

Attn:
Vice President and Treasurer

 

E-148

EXHIBIT
4.35 (continued)

NOTATION
OF GUARANTEE

 

For value
received, the Guarantor (which term includes any successor Person under the
Indenture) has unconditionally guaranteed, to the extent set forth in the
Indenture and subject to the provisions in the Indenture, dated as of
March 2, 2005 (the “Indenture”), among
Navistar International Corporation, the Guarantor party thereto and The Bank of
New York Trust Company, N.A., as trustee (the “Trustee”),
(i) the due and punctual payment of the principal of, premium, if any, and
interest in full on the Securities (as defined in the Indenture), when and as
the same shall become due and payable whether at Stated Maturity, by declaration
of acceleration or otherwise, (ii) the due and punctual payment of interest
on overdue principal of, premium, if any, and interest in full on the
Securities, to the extent permitted by law, and (iii) the due and punctual
performance of all other Obligations of the Company and the Guarantor to the
Holders or the Trustee, including, without limitation, the payment of fees,
expenses, indemnification or other amounts, all in accordance with the terms of
the Securities and the Indenture. In case of the failure of the Company to
punctually to make any such principal or interest payment or the failure of the
Company to perform any such other Obligation, the Guarantor hereby agrees to
cause any such payment to be made punctually when and as the same shall become
due and payable, whether at Stated Maturity, by acceleration or otherwise. The
Obligations of the Guarantor to the Holders of Securities and to the Trustee
pursuant to the Guarantee and the Indenture are expressly set forth in Article X
of the Indenture and reference is hereby made to the Indenture for the precise
terms of the Guarantee. The obligations of the Guarantor will be released only
in accordance with the provisions of Article X of the Indenture.

 

INTERNATIONAL
TRUCK AND ENGINE CORPORATION

By:
 ______________________________________

Name:
Terry M. Endsley

Title:
Vice President and Treasurer

E-149

EXHIBIT
4.35 (continued)

ASSIGNMENT
FORM

 

To assign
this Security, fill in the form below and have your signature guaranteed: (I) or
(we) assign and transfer this Security to:

 

(Insert
assignee’s soc. sec. or tax I.D. no.)

 

(Print or
type assignee’s name, address and zip code)

 

and
irrevocably appoint to transfer this Security on the books of the Company. The
agent may substitute another to act for him.

 

Dated: ____________________________________    

 

Your
Name: ____________________________________

 

(Print
your name exactly as it appears on the face of
this Security)

 

         Your
Signature: ____________________________________

 

(Sign
your name exactly as it appears on the face of
this Security)

 

 

Signature
Guarantee*:  ____________________________________      

 

* Participant
in a recognized Signature Guarantee Medallion Program (or other signature
guarantor acceptable to the Trustee).

 

E-150

EXHIBIT
4.35 (continued)

OPTION OF
HOLDER TO ELECT PURCHASE

 

If you
want to elect to have this Security purchased by the Company pursuant to Section
3.13 or Section 5.9 of the Indenture, please check the appropriate
box:

 

£ Section
3.13   £  Section
5.9

 

If you
want to elect to have only part of the Security purchased by the Company
pursuant to Section 3.13 or Section 5.9 of the Indenture, state the amount you
elect to have purchased:

 

$________________

 

Date: ____________________________________     

 

Your
Signature: ________________________

                       (Sign
exactly as your name appears on the face
of this Note)

 

Tax
Identification No.:_______________________

 

Signature
Guarantee*: ____________________________________      

 

* Participant
in a recognized Signature Guarantee Medallion Program (or other signature
guarantor acceptable to the Trustee).

 

E-151

EXHIBIT
4.35 (continued)

SCHEDULE
OF EXCHANGES OF INTERESTS IN THE GLOBAL SECURITY

 

The
initial principal amount of this Global Security is $400,000,000. The following
increases or decreases in this Global Security have been made:

 

	
      Date
      of

      Exchange

       
	
      Amount
      of decrease in

      Principal
      Amount of

      this
      Global Security

       
	
      Amount
      of increases in

      Principal
      Amount of

      this
      Global Security

       
	
      Principal
      Amount of

      this
      Global Security

      following
      such

      decrease
      (or increase)

       
	
      Signature
      of

      authorized
      officer of

      Trustee
      or

      Depositary

       

	 
      

    

 

E-152

EXHIBIT
4.35 (continued)

EXHIBIT
B

 

FORM
OF CERTIFICATE OF TRANSFER

 

Navistar
International Corporation

c/o The
Bank of New York Trust Company, N.A., as Trustee

2 North
LaSalle Street, Suite 1020

Chicago,
Illinois 60602

Attention:
Corporate Trust Administration 

 

Re:
 Navistar
International Corporation (the “Company”)

            61⁄4 % Senior Notes due
2012

 

Reference
is hereby made to the Indenture, dated as of March 2, 2005 (the “Indenture”), among
Navistar International Corporation, a Delaware corporation (the “Company”), the
Guarantor, and The Bank of New York Trust Company, N.A., as trustee. Capitalized
terms used but not defined herein shall have the meanings given to them in the
Indenture.

 

___________________
(the “Transferor”) owns
and proposes to transfer the Note[s] or interest in such Note[s] specified in
Annex A hereto, in the principal amount at maturity of $___________ in such
Note[s] or interests (the “Transfer”), to
___________________________ (the “Transferee”), as
further specified in Annex A hereto. In connection with the Transfer, the
Transferor hereby certifies that:

 

[CHECK
ALL THAT APPLY]

 

o 1. Check
if Transferee will take delivery of a beneficial interest in the 144A Global
Security or a Definitive Security Pursuant to Rule 144A. The
Transfer is being effected pursuant to and in accordance with Rule 144A under
the United States Securities Act of 1933, as amended (the “Securities
Act”), and,
accordingly, the Transferor hereby further certifies that the beneficial
interest or Definitive Security is being transferred to a Person that the
Transferor reasonably believed and believes is purchasing the beneficial
interest or Definitive Security for its own account, or for one or more accounts
with respect to which such Person exercises sole investment discretion, and such
Person and each such account is a “qualified institutional buyer” within the
meaning of Rule 144A in a transaction meeting the requirements of Rule 144A and
such Transfer is in compliance with any applicable blue sky securities laws of
any state of the United States. Upon consummation of the proposed Transfer in
accordance with the terms of the Indenture, the transferred beneficial interest
or Definitive Security will be subject to the restrictions on transfer
enumerated in the Private Placement Legend printed on the 144A Global Security
and/or the Definitive Security and in the Indenture and the Securities
Act.

 

o 2. Check
if Transferee will take delivery of a beneficial interest in a Legended
Regulation S Global Security, or a Definitive Security pursuant to
Regulation S. The
Transfer is being effected pursuant to and in accordance with Rule 903 or Rule
904 under the Securities Act and, accordingly, the Transferor hereby further
certifies that (i) the Transfer is not 

 

E-153

EXHIBIT
4.35 (continued)

being
made to a person in the United States and (x) at the time the buy order was
originated, the Transferee was outside the United States or such Transferor and
any Person acting on its behalf reasonably believed and believes that the
Transferee was outside the United States or (y) the transaction was executed in,
on or through the facilities of a designated offshore securities market and
neither such Transferor nor any Person acting on its behalf knows that the
transaction was prearranged with a buyer in the United States, (ii) no directed
selling efforts have been made in contravention of the requirements of Rule
903(b) or Rule 904(b) of Regulation S under the Securities Act, (iii) the
transaction is not part of a plan or scheme to evade the registration
requirements of the Securities Act and (iv) the transfer is not being made to a
U.S. Person or for the account or benefit of a U.S. Person. Upon consummation of
the proposed transfer in accordance with the terms of the Indenture, the
transferred beneficial interest or Definitive Security will be
subject to the restrictions on transfer enumerated in the Private Placement
Legend printed on the Legended Regulation S Global Security and/or the
Definitive Security and in the Indenture and the Securities Act.

 

o 3. Check
and complete if Transferee will take delivery of a Restricted Definitive
Security pursuant to any provision of the Securities Act other than Rule 144A or
Regulation S. The
Transfer is being effected in compliance with the transfer restrictions
applicable to beneficial interests in Restricted Global Securities and
Restricted Definitive Securities and pursuant to and in accordance with the
Securities Act and any applicable blue sky securities laws of any state of the
United States, and accordingly the Transferor hereby further certifies that
(check one):

 

o (a) such
Transfer is being effected to the Company or a subsidiary thereof;
or

o (b) such
Transfer is being effected to an Institutional Accredited Investor and pursuant
to an exemption from the registration requirements of the Securities Act other
than Rule 144A, Rule 144 or Rule 904, and the Transferor hereby further
certifies that it has not engaged in any general solicitation within the meaning
of Regulation D under the Securities Act and the Transfer complies with the
transfer restrictions applicable to beneficial interests in a Restricted Global
Security or Restricted Definitive Securities and the requirements of the
exemption claimed, which certification is supported by (1) a certificate
executed by the Transferee in the form of Exhibit
E to the
Indenture and (2) if such transfer is in respect of an aggregate principal
amount of Securities less than $100,000, an Opinion of Counsel provided by the
Transferor or the Transferee (a copy of which the Transferor has attached to
this certification), to the effect that such Transfer is in compliance with the
Securities Act. Upon consummation of the proposed transfer in accordance with
the terms of the Indenture, the transferred beneficial interest or Definitive
Security will be subject to the restrictions on transfer enumerated in the
Private Placement Legend printed on the Definitive Securities and in the
Indenture and the Securities Act.

 

4. Check
if Transferee will take delivery of a beneficial interest in an Unrestricted
Global Security or of an Unrestricted Definitive Security.

 

o (a) Check if
Transfer is Pursuant to Rule 144. (i) The Transfer is being effected pursuant to
and in accordance with Rule 144 under the Securities Act and in compliance

 

E-154

EXHIBIT
4.35 (continued)

with the
transfer restrictions contained in the Indenture and any applicable blue sky
securities laws of any state of the United States and (ii) the restrictions on
transfer contained in the Indenture and the Private Placement Legend are not
required in order to maintain compliance with the Securities Act. Upon
consummation of the proposed Transfer in accordance with the terms of the
Indenture, the transferred beneficial interest or Definitive Security will no
longer be subject to the restrictions on transfer enumerated in the Private
Placement Legend printed on the Restricted Global Securities, on Restricted
Definitive Securities and in the Indenture.

 

o (b) Check if
Transfer is Pursuant to Regulation S. (i) The Transfer is being effected
pursuant to and in accordance with Rule 903 or Rule 904 under the Securities Act
and in compliance with the transfer restrictions contained in the Indenture and
any applicable blue sky securities laws of any state of the United States and,
in the case of a transfer from a Restricted Global Security or a Restricted
Definitive Security, the Transferor hereby further certifies that (a) the
Transfer is not being made to a person in the United States and (x) at the time
the buy order was originated, the Transferee was outside the United States or
such Transferor and any Person acting on its behalf reasonably believed and
believes that the Transferee was outside the United States or (y) the
transaction was executed in, on or through the facilities of a designated
offshore securities market and neither such Transferor nor any Person acting on
its behalf knows that the transaction was prearranged with a buyer in the United
States, (b) no directed selling efforts have been made in contravention of the
requirements of Rule 903(b) or Rule 904(b) of Regulation S under the Securities
Act, (c) the transaction is not part of a plan or scheme to evade the
registration requirements of the Securities Act and (d) the transfer is not
being made to a U.S. Person or for the account or benefit of a U.S. Person, and
(ii) the restrictions on transfer contained in the Indenture and the Private
Placement Legend are not required in order to maintain compliance with the
Securities Act. Upon consummation of the proposed Transfer in accordance with
the terms of the Indenture, the transferred beneficial interest or Definitive
Security will no longer be subject to the restrictions on transfer enumerated in
the Private Placement Legend printed on the Restricted Global Securities, on
Restricted Definitive Securities and in the Indenture.

 

o(c) Check if
Transfer is Pursuant to Other Exemption. (i) The Transfer is being effected
pursuant to and in compliance with an exemption from the registration
requirements of the Securities Act other than Rule 144, Rule 903 or Rule 904 and
in compliance with the transfer restrictions contained in the Indenture and any
applicable blue sky securities laws of any State of the United States and (ii)
the restrictions on transfer contained in the Indenture and the Private
Placement Legend are not required in order to maintain compliance with the
Securities Act. Upon consummation of the proposed Transfer in accordance with
the terms of the Indenture, the transferred beneficial interest or Definitive
Security will not be subject to the restrictions on transfer enumerated in the
Private Placement Legend printed on the Restricted Global Securities or
Restricted Definitive Securities and in the Indenture.

 

E-155

EXHIBIT
4.35 (continued)

This
certificate and the statements contained herein are made for your benefit and
the benefit of the Company.

 

 

Dated:  ____________________________________    

 

 

 ____________________________________

  [Insert
Name of Transferor]

 

 

By: ____________________________________

 

Name:

Title:

E-156

EXHIBIT
4.35 (continued)

 

ANNEX A
TO CERTIFICATE OF TRANSFER

 

1. The
Transferor owns and proposes to transfer the following:

 

 

[CHECK
ONE OF (A) OR (B)]

 

 

o (A) A
BENEFICIAL INTEREST IN THE:

 

(i) 144A
Global Security (CUSIP __________); or

 

(ii) Regulation S
Global Security (CUSIP __________); or

 

 

o (B) A
RESTRICTED DEFINITIVE SECURITY.

 

2. After the
Transfer the Transferee will hold:

 

 

[CHECK
ONE]

 

 

o (A) A
BENEFICIAL INTEREST IN THE:

 

(i) 144A
Global Security (CUSIP __________); or

 

(ii) Regulation S
Global Security (CUSIP __________); or

 

(iii) Unrestricted
Global Security (CUSIP _________ );
or

 

 

o (B) A
RESTRICTED DEFINITIVE SECURITY; OR

 

 

o (C) AN
UNRESTRICTED DEFINITIVE SECURITY,

 

in
accordance with the terms of the Indenture.

 

E-157

EXHIBIT
4.35 (continued)

EXHIBIT
C

 

FORM
OF CERTIFICATE OF EXCHANGE

 

Navistar
International Corporation

c/o The
Bank of New York Trust Company, N.A., as Trustee

2 North
LaSalle Street, Suite 1020

Chicago,
Illinois 60602

Attention:
Corporate Trust Administration 

 

Re:
 Navistar
International Corporation (the “Company”)

                                       
61⁄4 % Senior Notes due 2012

 

Reference
is hereby made to the Indenture, dated as of March 2, 2005 (the “Indenture”), among
Navistar International Corporation, a Delaware corporation (the “Company”), the
Guarantor and The Bank of New York Trust Company, N.A., as trustee. Capitalized
terms used but not defined herein shall have the meanings given to them in the
Indenture.

 

__________________________
(the “Owner”) owns
and proposes to exchange the Note[s] or interest in such Note[s] specified
herein, in the principal amount at maturity of $____________ in such Note[s] or
interests (the “Exchange”). In
connection with the Exchange, the Owner hereby certifies that:

 

1. Exchange
of Restricted Definitive Securities or Beneficial Interests in a Restricted
Global Security for Unrestricted Definitive Securities or Beneficial Interests
in an Unrestricted Global Security

 

o (a)  Check if
Exchange is from beneficial interest in a Restricted Global Security to
beneficial interest in an Unrestricted Global Security. In connection with the
Exchange of the Owner’s beneficial interest in a Restricted Global Security for
a beneficial interest in an Unrestricted Global Security in an equal principal
amount at maturity, the Owner hereby certifies (i) the beneficial interest is
being acquired for the Owner’s own account without transfer, (ii) such Exchange
has been effected in compliance with the transfer restrictions applicable to the
Global Securities and pursuant to and in accordance with the United States
Securities Act of 1933, as amended (the “Securities
Act”), (iii)
the restrictions on transfer contained in the Indenture and the Private
Placement Legend are not required in order to maintain compliance with the
Securities Act and (iv) the beneficial interest in an Unrestricted Global
Security is being acquired in compliance with any applicable blue sky securities
laws of any state of the United States.

 

o  (b) Check if
Exchange is from beneficial interest in a Restricted Global Security to
Unrestricted Definitive Security. In connection with the Exchange of the Owner’s
beneficial interest in a Restricted Global Security for an Unrestricted
Definitive Security, the Owner hereby certifies (i) the Definitive Security is
being acquired for the Owner’s own account without transfer, (ii) such Exchange
has been effected in compliance with the transfer restrictions 

 

E-158

EXHIBIT
4.35 (continued)

applicable
to the Restricted Global Securities and pursuant to and in accordance with the
Securities Act, (iii) the restrictions on transfer contained in the Indenture
and the Private Placement Legend are not required in order to maintain
compliance with the Securities Act and (iv) the Definitive Security is being
acquired in compliance with any applicable blue sky securities laws of any state
of the United States.

 

o (c) Check if
Exchange is from Restricted Definitive Security to beneficial interest in an
Unrestricted Global Security. In connection with the Owner’s Exchange of a
Restricted Definitive Security for a beneficial interest in an Unrestricted
Global Security, the Owner hereby certifies (i) the beneficial interest is being
acquired for the Owner’s own account without transfer, (ii) such Exchange has
been effected in compliance with the transfer restrictions applicable to
Restricted Definitive Securities and pursuant to and in accordance with the
Securities Act, (iii) the restrictions on transfer contained in the Indenture
and the Private Placement Legend are not required in order to maintain
compliance with the Securities Act and (iv) the beneficial interest is being
acquired in compliance with any applicable blue sky securities laws of any state
of the United States.

 

o  (d) Check if
Exchange is from Restricted Definitive Security to Unrestricted Definitive
Security. In connection with the Owner’s Exchange of a Restricted Definitive
Security for an Unrestricted Definitive Security, the Owner hereby certifies (i)
the Unrestricted Definitive Security is being acquired for the Owner’s own
account without transfer, (ii) such Exchange has been effected in compliance
with the transfer restrictions applicable to Restricted Definitive Securities
and pursuant to and in accordance with the Securities Act, (iii) the
restrictions on transfer contained in the Indenture and the Private Placement
Legend are not required in order to maintain compliance with the Securities Act
and (iv) the Unrestricted Definitive Security is being acquired in compliance
with any applicable blue sky securities laws of any state of the United
States.

 

2. Exchange
of Restricted Definitive Securities or Beneficial Interests in Restricted Global
Securities for Restricted Definitive Securities or Beneficial Interests in
Restricted Global Securities

 

o  (a) Check if
Exchange is from beneficial interest in a Restricted Global Security to
Restricted Definitive Security. In connection with the Exchange of the Owner’s
beneficial interest in a Restricted Global Security for a Restricted Definitive
Security with an equal principal amount at maturity, the Owner hereby certifies
that the Restricted Definitive Security is being acquired for the Owner’s own
account without transfer. Upon consummation of the proposed Exchange in
accordance with the terms of the Indenture, the Restricted Definitive Security
issued will continue to be subject to the restrictions on transfer enumerated in
the Private Placement Legend printed on the Restricted Definitive Security and
in the Indenture and the Securities Act.

 

E-159

EXHIBIT
4.35 (continued)

o  (b) Check if
Exchange is from Restricted Definitive Security to beneficial interest in a
Restricted Global Security. In connection with the Exchange of the Owner’s
Restricted Definitive Security for a beneficial interest in the [CHECK ONE]
:

 

o  144A
Global Security, :

 

o  Regulation S
Global Security, :

 

with an
equal principal amount at maturity, the Owner hereby certifies (i) the
beneficial interest is being acquired for the Owner’s own account without
transfer and (ii) such Exchange has been effected in compliance with the
transfer restrictions applicable to the Restricted Global Securities and
pursuant to and in accordance with the Securities Act, and in compliance with
any applicable blue sky securities laws of any state of the United States. Upon
consummation of the proposed Exchange in accordance with the terms of the
Indenture, the beneficial interest issued will be subject to the restrictions on
transfer enumerated in the Private Placement Legend printed on the relevant
Restricted Global Security and in the Indenture and the Securities
Act.

This
certificate and the statements contained herein are made for your benefit and
the benefit of the Company.

 

 

Dated:
__________________    

 

____________________________________

                                     [Insert Name of
Transferor]

 

 

By: 
___________________________      

 

Name:

Title:

 

E-160

EXHIBIT
4.35 (continued)

EXHIBIT
D

 

FORM
OF CERTIFICATE FROM

ACQUIRING
INSTITUTIONAL ACCREDITED INVESTOR

 

Navistar
International Corporation

c/o The
Bank of New York Trust Company, N.A., as Trustee

2 North
LaSalle Street, Suite 1020

Chicago,
Illinois 60602

Attention:
Corporate Trust Administration 

 

Re:
 Navistar
International Corporation (the “Company”)

                61⁄4
% Senior Notes due 2012

 

Reference
is hereby made to the Indenture, dated as of March 2, 2005 (the “Indenture”), among
Navistar International Corporation, a Delaware corporation (the “Company”), the
Guarantor and The Bank of New York Trust Company, N.A., as trustee. Capitalized
terms used but not defined herein shall have the meanings given to them in the
Indenture.

 

In
connection with our proposed purchase of $____________ aggregate principal
amount at maturity of:

 

(a) o  beneficial
interest in a Global Security, or

 

(b) o  a
Definitive Security,

 

we
confirm that:

 

1. We
understand that any subsequent transfer of the Securities or any interest
therein is subject to certain restrictions and conditions set forth in the
Indenture and the undersigned agrees to be bound by, and not to resell, pledge
or otherwise transfer the Securities or any interest therein except in
compliance with, such restrictions and conditions and the United States
Securities Act of 1933, as amended (the “Securities
Act”).

 

2. We
understand that the offer and sale of the Securities have not been registered
under the Securities Act, and that the Securities and any interest therein may
not be offered or sold except as permitted in the following sentence. We agree,
on our own behalf and on behalf of any accounts for which we are acting as
hereinafter stated, that if we should sell the Securities or any interest
therein, we will do so only:

 

(i)(a) to
a person whom we reasonably believe is a qualified institutional buyer (as
defined in Rule 144A under the securities act) in a transaction meeting the
requirements of Rule 144A, (b) in a transaction meeting the requirements of Rule
144 under the Securities Act, (c) outside the United States to a non-U.S. person
in a transaction meeting the requirements of Rule 903 or 904 under the
Securities Act, (d) to an institutional “accredited investor” (as defined in
Rule 501(a)(1), (2) (3) or (7) of the Securities Act (an “Institutional
Accredited 

 

E-161

EXHIBIT
4.35 (continued)

Investor”))
that, prior to such transfer, furnishes the trustee a signed letter
substantially in the form of this letter and, if such transfer is in respect of
an aggregate principal amount of Securities less than $100,000, an Opinion of
Counsel acceptable to the issuer that such transfer is in compliance with the
Securities Act, or (e) in accordance with another exemption from the
registration requirements of the Securities Act (and based upon an Opinion of
Counsel if the Company so requests),

 

(ii) to
the Company, or

 

(iii)
pursuant to an effective registration statement and, in each case, in accordance
with any applicable securities laws of any state of the United States or any
other applicable jurisdiction;

 

and we
further agree to provide to any person purchasing the Definitive Security or
beneficial interest in a Global Security from us in a transaction meeting the
requirements of this paragraph a notice advising such purchaser that resales
thereof are restricted as stated herein.

 

3. We
understand that, on any proposed resale of the Securities or beneficial interest
therein, we will be required to furnish to you and the Company such
certifications, legal opinions and other information as you and the Company may
reasonably require to confirm that the proposed sale complies with the foregoing
restrictions. We further understand that the Securities purchased by us will
bear a legend to the foregoing effect.

 

4. We are an
institutional “accredited investor” (as defined in Rule 501(a)(1), (2), (3) or
(7) of Regulation D under the Securities Act) and have such knowledge and
experience in financial and business matters as to be capable of evaluating the
merits and risks of our investment in the Securities, and we and any accounts
for which we are acting are each able to bear the economic risk of our or its
investment.

 

5. We are
acquiring the Securities or beneficial interest therein purchased by us for our
own account or for one or more accounts (each of which is an institutional
“accredited investor”) as to each of which we exercise sole investment
discretion.

 

You and
the Company are entitled to rely upon this letter and are irrevocably authorized
to produce this letter or a copy hereof to any interested party in any
administrative or legal proceedings or official inquiry with respect to the
matters covered hereby.

 

Dated:
__________________

____________________________________

                                     [Insert Name of
Accredited Investor]

 

 

By:__________________      

Name:

Title:

:

E-162

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