Document:

Exhibit 4.01

 

[FACE OF NOTE]

 

Unless this certificate is presented by an authorized
representative of The Depository Trust Company (55 Water Street, New York, New
York) to the issuer or its agent for registration of transfer, exchange or
payment, and any certificate issued is registered in the name of Cede & Co.
or such other name as requested by an authorized representative of The
Depository Trust Company and any payment is made to Cede & Co., ANY
TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON
IS WRONGFUL since the registered owner hereof, Cede & Co., has an interest
herein.

 

 

	
  REGISTERED 

  	
   

  	
  CUSIP: 225434AA7 

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  PRINCIPAL AMOUNT:
  $420,000

  
	
  NO. 1

  	
   

  	
   

  

 

	
  CREDIT SUISSE
  (USA), INC. 

  Reverse Convertible Securities Linked to the Performance of Advanced Micro
  Devices 

  due February 23, 2007

  

 

CREDIT SUISSE (USA), INC., a Delaware corporation (the
“Company”, which term includes any successor corporation under the Indenture
hereinafter referred to), for value received, hereby promises to pay to Cede
& Co., or registered assigns, at the office or agency of the Company in New
York, New York, the Redemption Amount (as defined on the reverse hereof) on the
Maturity Date (as defined on the reverse hereof), in the coin or currency of
the United States and to pay a coupon of 12.50% per annum on the
principal amount from February 24, 2006. The coupon payment will be payable
quarterly in arrears on May 23, 2006, August 23, 2006, November 23, 2006, and
February 23, 2007.

 

Reference is hereby made to the further provisions of
this Note set forth on the reverse hereof, which further provisions shall for
all purposes have the same effect as if set forth at this place.

 

This Note shall not be valid or become obligatory for
any purpose until the certificate of authentication hereon shall have been
manually signed by the Trustee under the Indenture referred to on the reverse
hereof.

 

F-1

 

IN
WITNESS WHEREOF, the Company has caused this Note to be duly executed under its
corporate seal.

 

	
   

  	
  CREDIT SUISSE (USA), INC.

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  [SEAL]

  	
  By:

  	
   

  	
  /s/ Peter Feeney

  	
   

  	
   

  
	
   

  	
   

  	
  Name: Peter Feeney

  	
   

  
	
   

  	
   

  	
  Title:  Authorized Signatory

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  CREDIT SUISSE (USA), INC.

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
  /s/ Grace Koo

  	
   

  
	
   

  	
   

  	
  Name:  Grace Koo

  	
   

  
	
   

  	
   

  	
  Title:  Authorized Signatory

  	
   

  
								

 

CERTIFICATE OF AUTHENTICATION

 

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

 

Dated:  February 24, 2006

 

	
   

  	
  JPMORGAN CHASE, N.A.,

  	
   

  
	
   

  	
  as Trustee

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
         /s/
  Ignazio Tamburello

  	
   

  
	
   

  	
   

  	
  Authorized Signatory

  	
   

  

 

F-2

 

[REVERSE OF NOTE]

 

CREDIT SUISSE
(USA), INC.

Reverse Convertible Securities Linked to the Performance of Advanced Micro
Devices

due February 23, 2007

 

This Note is one of a
duly authorized issue of debentures, notes, bonds or other evidences of
indebtedness of the Company (the “Securities”) of the series hereinafter
specified, all issued or to be issued under and pursuant to a senior indenture,
dated as of June 1, 2001 (the “Indenture”), between the Company and JPMorgan
Chase Bank, as trustee (the “Trustee”), to which Indenture and all indentures
supplemental thereto reference is hereby made for a description of the rights,
limitations of rights, obligations, duties and immunities thereunder of the
Trustee, the Company, and the Holders of the Securities. The Securities may be
issued in one or more series, which different series may be issued in various
aggregate principal amounts, may mature at different times, may bear interest
(if any) at different rates, may be subject to different redemption provisions
(if any), may be subject to different sinking, purchase or analogous funds (if
any) and may otherwise vary as provided in the Indenture. This Note is one of a
series designated as the Reverse Convertible Securities Linked to the
Performance of Advanced Micro Devices, due February 23, 2007 (the “Note”).

 

A coupon will be payable on this Note of
12.50% per annum on the principal amount from February 24, 2006. The coupon
payment will be payable quarterly in arrears on May 23, 2006, August 23, 2006,
November 23, 2006, and February 23, 2007.

 

This Note is payable in the manner, with the effect
and subject to the conditions provided in the Indenture.

 

If a payment date is not a business day as defined in
the Indenture 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.

 

The Indenture provides that, without prior notice to
any Holders, the Company and the Trustee may amend the Indenture and the
Securities of any series with the written consent of the Holders of a majority
in principal amount of the outstanding Securities of all series affected by
such amendment (all such series voting as one class), and the Holders of a
majority in principal amount of the outstanding Securities of all series
affected thereby (all such series voting as one class) may waive future
compliance by the Company with any provision of the Indenture or the Securities
of such series by written notice to the Trustee; provided that, without the
consent of each Holder of the Securities of each series affected thereby, an
amendment or waiver, including a waiver of past defaults, may not: (i) extend
the stated maturity of the Principal of, or any sinking fund obligation or any
installment of interest on, such Holder’s Security, or reduce the principal
amount thereof or the rate of interest thereon (including any amount in respect
of original issue discount), or any premium payable with respect thereto, or
adversely affect the rights of such Holder under any mandatory redemption or
repurchase provision or any right of redemption or repurchase at the option of
such Holder, or reduce the amount of the Principal of an Original Issue
Discount Security that would be due and payable upon an acceleration of the
maturity thereof or the amount thereof provable in bankruptcy, or 

 

R-1

 

change any place of payment where, or the currency in
which, any Security of such series 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 due date therefor; (ii) reduce the percentage in
principal amount of outstanding Securities of the relevant series the consent
of whose Holders is required for any such supplemental indenture, for any
waiver of compliance with certain provisions of the Indenture or certain
Defaults and their consequences provided for in the Indenture; (iii) waive a
Default in the payment of Principal of or interest on any Security of such
Holder; or (iv) modify any of the provisions of the Indenture governing
supplemental indentures with the consent of Securityholders except to increase
any such percentage or to provide that certain other provisions of the
Indenture cannot be modified or waived without the consent of the Holder of
each outstanding Security affected thereby.

 

The Indenture provides that, subject to certain
conditions, the Holders of at least a majority in principal amount (or, if any
Securities are Original Issue Discount Securities, such portion of the
Principal as is then accelerable) of the outstanding Securities of all series
affected (voting as a single class), by notice to the Trustee, may waive an
existing Default or Event of Default with respect to the Securities of such
series and its consequences, except a Default in the payment of Principal of or
interest on any Security or in respect of a covenant or provision of the
Indenture which cannot be modified or amended without the consent of the Holder
of each outstanding Security affected. Upon any such waiver, such Default shall
cease to exist, and any Event of Default with respect to the Securities of such
series arising therefrom shall be deemed to have been cured, for every purpose
of the Indenture; but no such waiver shall extend to any subsequent or other
Default or Event of Default or impair any right consequent thereto.

 

The Indenture provides that a series of Securities may
include one or more tranches (each a “tranche”) of Securities, including
Securities issued in a Periodic Offering. The Securities of different tranches
may have one or more different terms, including authentication dates and public
offering prices, but all the Securities within each such tranche shall have
identical terms, including authentication date and public offering price. Notwithstanding
any other provision of the Indenture, subject to certain exceptions, with respect
to sections of the Indenture concerning the execution, authentication and terms
of the Securities, redemption of the Securities, Events of Default of the
Securities, defeasance of the Securities and amendment of the Indenture, if any
series of Securities includes more than one tranche, all provisions of such
sections applicable to any series of Securities shall be deemed equally
applicable to each tranche of any series of Securities in the same manner as
though originally designated a series unless otherwise provided with respect to
such series or tranche pursuant to a board resolution or a supplemental
indenture establishing such series or tranche.

 

No reference herein to the Indenture and no provision
of this Note or of the Indenture shall alter or impair the obligation of the
Company, which is absolute and unconditional, to pay the Redemption Amount of
this Note in the manner, at the place, at the time and in the coin or currency
herein prescribed.

 

The Securities are issuable initially only in registered
form without coupons in denominations of $5,000 and any integral multiples of
$1,000 in excess of that amount at the office or agency of the Company in the
Borough of Manhattan, The City of New York, and in the manner and subject to
the limitations provided in the Indenture.

 

R-2

 

The Securities will not be redeemable at the option of
the Company prior to maturity.

 

The Company will not be required to pay any Additional
Amounts on the Securities.

 

Maturity Date

 

The Maturity Date of the Securities is February 23, 2007 (the “Maturity Date”);
however, if a market disruption event exists on the Valuation Date, as
determined by the Calculation Agent, the Maturity Date will be the later of
February 23, 2007, and the third business day following the date on which the
closing price for the reference shares is calculated.

 

Redemption Amount

 

The Company will redeem the Securities at maturity for
a redemption amount in cash that will be based on the performance of the
reference shares during the term of the Securities (the “redemption amount”):

 

(1)          If the closing price of
the reference shares on the New York Stock Exchange (the “relevant exchange”)
is not less than the knock-in level, which is 70% of the Initial Share Price,
on any day from but not including February 21, 2006, which is the initial
setting date, to and including February 16, 2007 (the “Valuation Date”), the
redemption amount will equal a cash payment equal to 100% of the principal
amount of the Securities.

 

(2)          If (i) the closing price
of the reference shares on the relevant exchange is less than the knock-in
level on any day from but not including February 21, 2006, which is the initial
setting date, to and including the Valuation Date and (ii) the closing price of
the reference shares on the relevant exchange on the Valuation Date, which we
refer to as the final share price, is greater than or equal to the Initial
Share Price, the redemption amount will equal a cash payment equal to 100% of
the principal amount of the Securities.

 

(3)          Otherwise, the
redemption amount will be the physical delivery amount. The physical delivery
amount will be the number of reference shares per $1,000 principal amount of
Securities equal to $1,000 divided by the Initial Share Price. The market value
of the physical delivery amount will be less than the principal amount of the
Securities and may be zero.

 

The “Initial Share Price” is $40.05.

 

A “business day” means a day, other than a Saturday,
Sunday or a day on which banking institutions in New York, New York are
generally authorized or obligated by law, regulation or executive order to
close and that is also a Trading Day.

 

A “trading day” means any day, as determined by the
Calculation Agent, on which trading is generally conducted for reference shares
(or, but for the occurrence of a market disruption event, would have been
generally conducted) on the relevant exchange and for options 

 

R-3

 

and other derivative instruments on the reference
shares on the Chicago Mercantile Exchange and the Chicago Board Options
Exchange, which we refer to collectively as the related exchanges, other than a
day on which the relevant exchange or the related exchanges are scheduled to
close prior to their regular weekday closing time.

 

Market Disruption Events

 

If no final share price is available on the Valuation
Date because of a market disruption event, as determined by the Calculation
Agent in its sole discretion, the Calculation Agent may postpone the
calculation of the final share price until the earlier of the date such market
disruption event has ceased or three trading days after the Valuation Date, as
the case may be. On such third trading day, in the event there still exists a
market disruption event, the Calculation Agent will determine the final share
price using its good faith estimate of the value for the reference shares as of
the closing time on the relevant exchange on such date. If a market disruption
event exists on the Valuation Date, the Maturity Date of the Securities will be
the later of the original Maturity Date and the third business day following
the day on which the final share price is calculated. No interest will accrue
or other payment be payable because of any postponement of the Maturity Date.

 

A “market disruption event” means the occurrence or
existence of any suspension of or limitation imposed on trading (by reason of
movements in price exceeding limits permitted by any relevant exchange or
market or otherwise) of, or the unavailability, through a recognized system of
public dissemination of transaction information, of accurate price, volume or
related information in respect of (a) the reference shares or (b) any options
or futures contracts, or any options on such futures contracts, relating to the
reference shares if, in each case, in the determination of the Calculation
Agent, in its sole discretion, any such suspension, limitation or
unavailability is material.

 

For purposes of determining whether a market disruption
event has occurred:  (1) a limitation on
the hours or number of days of trading will not constitute a market disruption
event if it results from an announced change in the regular business hours of
the relevant exchange; (2) a decision permanently to discontinue trading in the
relevant options or futures contract will not constitute a market disruption
event; (3) limitations pursuant to New York Stock Exchange Rule 80A—Index
Arbitrage Trading Restrictions (or any applicable rule or regulation enacted or
promulgated by the New York Stock Exchange, any other self-regulatory
organization or the SEC of similar scope as determined by the Calculation
Agent) on trading during significant market fluctuations will constitute a
market disruption event; (4) a suspension of trading in an options contract on
the reference shares by the primary securities market trading in such options,
if available, by reason of (x) a price change exceeding limits set by such
securities exchange or market, (y) an imbalance of orders relating to such
contracts or (z) a disparity in bid and ask quotes relating to such contracts
will constitute a suspension or material limitation of trading in options
contracts related to the reference shares notwithstanding that such suspension
or material limitation is less than two hours; (5) a suspension, absence or
material limitation of trading on the primary securities market on which
options contracts related to the reference shares are traded will not include
any time when such securities market is itself closed for trading under
ordinary circumstances; and (6) a “suspension or material limitation” on an
exchange or in a market will include a suspension or material limitation of
trading by one class 

 

R-4

 

of investors provided that such suspension continues
for more than two hours of trading or during the last one-half hour period
preceding the close of trading on the relevant exchange or market (but will not
include limitations imposed on certain types of trading under New York Stock
Exchange Rule 80A or any applicable rule or regulation enacted or promulgated
by the New York Stock Exchange, NASDAQ, any other self-regulatory organization
or the SEC of a similar scope or as a replacement for Rule 80A, as determined
by the Calculation Agent) and will not include any time when such exchange or
market is closed for trading as part of such exchange’s or market’s regularly
scheduled business hours.

 

Based on the information currently available to us, on
October 27, 1997, the New York Stock Exchange suspended all trading during the
one-half hour period preceding the close of trading pursuant to New York Stock
Exchange Rule 80B and, on each of September 11, 12, 13 and 14, 2001, the New
York Stock Exchange suspended all trading for the entire day due to certain
terrorist activity. If any such suspension of trading occurred during the term
of the Securities, it would constitute a market disruption event. The existence
or non-existence of these circumstances, however, is not necessarily indicative
of the likelihood of these circumstances arising or not arising in the future.

 

Antidilution Adjustments

 

General

 

The Calculation Agent will adjust the Initial Share Price
and the physical delivery amount if certain corporate actions and other events
described below (each of which, an “adjustment event”), occur, and the
Calculation Agent determines that such adjustment event has a diluting or
concentrative effect on the theoretical value of the reference shares. Set forth
below are examples of how adjustment events may lead to adjustments to the
Initial Share Price and the physical delivery amount.

 

Upon the occurrence of an adjustment event that the
Calculation Agent determines has a diluting or concentrative effect on the
theoretical value of the reference shares, for purposes only of determining
whether (i) the price of the reference shares is less than or equal to the
knock-in level and (ii) the final share price is less than or equal to the
Initial Share Price, the Calculation Agent will typically adjust the Initial
Share Price according to the following formula:

 

	
  Adjusted initial share price = initial share price X

  	
  prior physical delivery amount

  
	
  adjusted physical delivery amount

  

 

The physical delivery amount will be adjusted by the
Calculation Agent as set forth in the specific examples below.

 

The adjustments described below do not cover all events
that could affect the value of the Securities.

 

R-5

 

Adjustments

 

If an
adjustment event occurs and the Calculation Agent determines that the event has
a diluting or concentrative effect on the theoretical value of the reference
shares, the Calculation Agent will calculate a corresponding adjustment to the
Initial Share Price and the physical delivery amount as the Calculation Agent
determines appropriate to account for that diluting or concentrative effect. The
Calculation Agent will also determine the effective date of that adjustment,
and the replacement of the reference shares, if applicable, in the event of
consolidation or merger. Upon making any such adjustment, the Calculation Agent
will give notice as soon as practicable to the Trustee, stating the adjustment
of the Initial Share Price and physical delivery amount.

 

If more
than one adjustment event occurs, the Calculation Agent will make an adjustment
for each such adjustment event in the order in which they occur, and on a
cumulative basis. Accordingly, having adjusted the Initial Share Price and the
physical delivery amount for the first such adjustment event, the Calculation
Agent will adjust the Initial Share Price and the physical delivery amount for
the second adjustment event, applying the required adjustment to the Initial
Share Price and the physical delivery amount as already adjusted for the first
adjustment event, and so on for each subsequent adjustment event.

 

The
Calculation Agent will not have to adjust the Initial Share Price and the
physical delivery amount for any adjustment event unless the adjustment would result in a change to the
Initial Share Price or the physical delivery amount of at least 0.1% in the
Initial Share Price or the physical delivery amount that would apply without
the adjustment. The Initial Share Price and the physical delivery amount
resulting from any adjustment would be rounded up or down, as appropriate, to,
in the case of the Initial Share Price, the nearest cent, and, in the case of
the physical delivery amount, the nearest thousandth, with one-half cent and
five ten-thousandths, respectively, being rounded upwards.

 

If an
adjustment event requiring antidilution adjustment occurs, the Calculation
Agent will make any adjustments with a view to offsetting, to the extent
practical, any change in the Holders’ economic position relative to the
Securities that results solely from that event. The Calculation Agent may, in
its sole discretion, modify any antidilution adjustments as necessary to ensure
an equitable result.

 

The
Calculation Agent has sole discretion in making all determinations with respect
to antidilution adjustments, including any determination as to whether an
adjustment event requiring an antidilution adjustment has occurred, as to the
nature of the adjustment required and how it will be made. In the absence of
manifest error, those determinations will be conclusive for all purposes and
will be binding on the Holders and the Company, without any liability on the
part of the Calculation Agent. Upon written request, the Calculation Agent will
provide information about any adjustments it makes.

 

R-6

 

Events requiring an antidilution adjustment

 

The
following is a list of adjustment events that may require an antidilution
adjustment:

 

(a)                                  a subdivision, consolidation
or reclassification of the reference shares or a free distribution or dividend
of any reference shares to existing holders of reference shares by way of
bonus, capitalization or similar issue;

 

(b)                                 a dividend or other
distribution to existing holders of reference shares of (i) the reference
shares, (ii) other share capital or securities granting the right to payment of
dividends equally or proportionately with such payments to holders of the
reference shares or (iii) any other type of securities, rights or warrants in
any case for payment (in cash or otherwise) at less than the prevailing market
price as determined by the Calculation Agent;

 

(c)                                  the declaration by the
issuer of the reference shares of an extraordinary or special dividend or other
distribution whether in cash or reference shares or other assets;

 

(d)                                 a repurchase of its common
stock by the issuer of the reference shares whether out of profits or capital
and whether the consideration for such repurchase is cash, securities or
otherwise;

 

(e)                                  a consolidation of the
issuer of the reference shares with another company or merger of the issuer of
the reference shares with another company; and

 

(f)                                    any other similar event that
may have a diluting or concentrative effect on the theoretical value of the
reference shares.

 

Certain
adjustment events are discussed in greater detail below.

 

Stock splits

 

A stock split is an increase in the number of a corporation’s
outstanding shares of stock without any change in its stockholders’ equity. As
a result of a stock split, each outstanding share will be worth less.

 

If the
reference shares are subject to a stock split, the Calculation Agent will
adjust the physical delivery amount to equal the sum of the prior physical
delivery amount—i.e., the physical delivery amount before that adjustment—and
the product of (i) the number of additional shares issued in the stock split
with respect to each of the reference shares times (ii) the prior physical
delivery amount.

 

Reverse stock splits

 

A reverse
stock split is a decrease in the number of a corporation’s outstanding shares
of stock without any change in its stockholders’ equity. As a result of a
reverse stock split, each outstanding share will be worth more.

 

If the
reference shares are subject to a reverse stock split, the Calculation Agent
will adjust the physical delivery amount to equal the product of the prior
physical delivery amount and the quotient of (i) the number of reference shares
outstanding immediately after the reverse 

 

R-7

 

stock split
becomes effective divided by (ii) the number of reference shares outstanding
immediately before the reverse stock split becomes effective.

 

Stock dividends

 

In a stock
dividend, a corporation issues additional shares of its stock to all holders of
its outstanding stock in proportion to the shares they own. As a result of a
stock dividend, each outstanding share will be worth less.

 

If the
reference shares are subject to a stock dividend payable in the reference
shares, then the Calculation Agent will adjust the physical delivery amount to
equal the sum of the prior physical delivery amount and the product of (i) the
number of additional shares issued in the stock dividend with respect to each
of the reference shares times (ii) the prior physical delivery amount.

 

Other dividends and distributions

 

If the
issuer of the reference shares declares a dividend to be distributed to holders
of record of the reference shares as of a date falling in the period that
begins on the day immediately following the Valuation Date and ends on the day
immediately prior to the Maturity Date, any such dividend will not be paid to
Holders.

 

The
physical delivery amount will not be adjusted to reflect any dividends or
distributions paid with respect to the reference shares, other than (i) stock
dividends described above; (ii) issuances of transferable rights and warrants
as described in “—Transferable rights and warrants” below; and (iii)
extraordinary dividends as described below.

 

A dividend
or other distribution with respect to the reference shares will be deemed to be
an “extraordinary dividend” if its per share value exceeds that of the
immediately preceding non-extraordinary dividend, if any, for the reference
shares by an amount equal to at least 10.00% of the market price of the
reference shares on the business day before the extraordinary dividend date. The
ex dividend date for any dividend or other distribution is the first day on
which the reference shares trade without the right to receive that dividend or
distribution. If an extraordinary dividend occurs, the Calculation Agent will
adjust the physical delivery amount to equal the product of (1) the prior
physical delivery amount times (2) a fraction, the numerator of which is the
market price of the reference shares on the business day before the ex dividend
date and the denominator of which is the amount by which that market price
exceeds the extraordinary dividend adjustment amount. The “extraordinary
dividend adjustment amount” with respect to an extraordinary dividend for the
reference shares equals:  (i) for an
extraordinary dividend that is paid in lieu of a regular quarterly dividend,
the amount of the extraordinary dividend per share of the reference shares
minus the amount per share of the immediately preceding dividend, if any, that
was not an extraordinary dividend for the reference shares, or (ii) for an
extraordinary dividend that is not paid in lieu of a regular quarterly
dividend, the amount per share of the extraordinary dividend.

 

To the
extent an extraordinary dividend is not paid in cash, the value of the non-cash
component will be determined by the Calculation Agent. A distribution on the
reference shares that is a dividend payable in the reference shares, an
issuance of rights or warrants or a spin-off 

 

R-8

 

event and
that is also an extraordinary dividend will result in an adjustment to the
physical delivery amount only as described in “Stock dividends” above, “Transferable
rights and warrants” below or “Reorganization events” below, as the case may
be, and not as described here.

 

Transferable rights and warrants

 

If the
issuer of the reference shares issues transferable rights or warrants to all
holders of the reference shares to subscribe for or purchase the reference
shares at an exercise price per share that is less than the market price of the
reference shares on the business day before the extraordinary dividend date for
the issuance, then the physical delivery amount will be adjusted by multiplying
the prior physical delivery amount by the following fraction:  (i) the numerator will be the sum of the
number of reference shares outstanding at the close of business on the day
before that ex dividend date and the total number of additional reference
shares offered for subscription or purchase under those transferable rights or
warrants, and (ii) the denominator will be the sum of the number of reference
shares outstanding at the close of business on the day before that ex dividend
date and the product of (1) the total number of additional reference shares
offered for subscription or purchase under the transferable rights or warrants
times (2) the exercise price of those transferable rights or warrants divided
by the market price on the business day before that extraordinary dividend
date.

 

Reorganization events

 

Each of the
following may be a reorganization event: 
(i) the reference shares are reclassified or changed; (ii) the issuer of
the reference shares has been subject to a merger, consolidation or other
combination and either is not the surviving entity or is the surviving entity
but all outstanding reference shares are exchanged for or converted into other
property; (iii) a statutory share exchange involving outstanding reference
shares and the securities of another entity occurs, other than as part of an
event described above; (iv) the issuer of the reference shares effects a
spin-off (i.e., issues to all holders of reference shares common stock equity
securities of another issuer) other than as part of an event described above;
(v) the issuer of the reference shares sells or otherwise transfers its
property and assets as an entirety or substantially as an entirety to another
entity (each of the events in clauses (i) through (v) above, a “merger event”);
(vi) a takeover offer, tender offer, exchange offer, solicitation, proposal or
other event by any entity or person that results in such entity or person
purchasing, or otherwise obtaining or having the right to obtain, by conversion
or other means, not less than a majority of the outstanding voting reference
shares as determined by the Calculation Agent, based upon the making of filings
with governmental or self-regulatory agencies or such other information as the
Calculation Agent deems relevant, which we refer to as a tender offer; (vii)
the exchange on which the reference shares trade announces that pursuant to the
rules of such exchange, the reference shares cease (or will cease) to be
listed, traded or publicly quoted on it for any reason (other than a merger
event or tender offer) and are not immediately re-listed, re-traded or
re-quoted on another major U.S. exchange or quotation system (a “delisting
event”); and (viii) the issuer of the reference shares is liquidated, dissolved
or wound up or is subject to a proceeding under any applicable bankruptcy,
insolvency or other similar law (each, an “insolvency event”).

 

R-9

 

Adjustments for reorganization events

 

If a merger
event occurs and a holder of the reference shares that makes no election, vote
or decision in connection with such merger event would receive as full or
partial consideration ordinary or common shares of any person (other than the
issuer of the reference shares) that are publicly quoted, traded or listed on
any major U.S. exchange or quotation system (the “new shares”), then the Calculation Agent will adjust the
physical delivery amount so as to consist of the amount and type of property
distributed in the reorganization event in respect of the prior physical
delivery amount. In this instance, if more than one type of property is
distributed, the physical delivery amount will be adjusted so as to consist of
each type of property distributed, in a proportionate amount, so that the value
of each type of property comprising the new physical delivery amount as a
percentage of the total value of the new physical delivery amount equals the
value of that type of property as a percentage of the total value of all of the
property distributed in the reorganization event.

 

If a tender
offer occurs, and the holder of the reference shares can elect to receive new
shares as full or partial consideration in respect of such tender offer, then
the Calculation Agent will adjust the physical delivery amount in accordance
with the preceding paragraph.

 

If a merger
event occurs, and the consideration in respect of such event does not consist
in full or in part of new shares (or in the case of a tender offer, a holder of
the reference shares would not be able to elect to receive in full or in part
any new shares as consideration in respect of such tender offer), then the
Calculation Agent will accelerate the Maturity Date to the day which is four
business days after the approval date (as defined below). The amount payable at
maturity will be determined as described below under “Events of default and
acceleration.”  The approval date is the
closing date of a merger event or, in the case of a tender offer, the date on
which the person or entity making the tender offer acquires or acquires the
right to obtain the relevant percentage of reference shares.

 

If a
delisting event or an insolvency event occurs, the Calculation Agent will
accelerate the Maturity Date to the day which is four business days after the
announcement date (as defined below). On the Maturity Date, the Company will
pay to each Holder the physical delivery amount and for the purposes of such
calculation, the final share price will be deemed to be the closing price of
the reference shares on the business day immediately prior to the announcement
date. The announcement date means, in the case of a delisting event, the day of
the first public announcement by the relevant exchange that the reference
shares will cease to trade or be publicly quoted on such exchange, or, in the
case of an insolvency event, the day of the first public announcement of the
institution of a proceeding or presentation of a petition or passing of a
resolution (or other analogous procedure in any jurisdiction) that leads to an
insolvency event with respect to the issuer of the reference shares.

 

If a merger
event or tender offer occurs, coupon payment amounts will accrue on the
Securities through the approval date and be paid on the accelerated Maturity
Date. Such coupon payments will be calculated using a 360-day year comprised of
twelve 30-day months. If a delisting event or an insolvency event occurs, the
Company will pay all remaining scheduled unpaid coupon payments due to a Holder
through the scheduled Maturity Date on the accelerated Maturity Date.

 

R-10

 

For the
purposes of making an adjustment required by a reorganization event, the
Calculation Agent will determine the value of each type of property distributed
in the distribution, in its sole discretion. For any property distributed
consisting of new shares, the Calculation Agent will use the closing price of
the new shares on the approval date. The Calculation Agent may value other
types of property in any manner it determines, in its sole discretion, to be
appropriate. If a holder of the common stock of the issuer of the reference
shares elects to receive different types or combinations of types of property
in the reorganization event, such property will consist of the types and
amounts of each type distributed to a holder that makes no election, as
determined by the Calculation Agent.

 

If a
reorganization event occurs and the Calculation Agent adjusts the physical
delivery amount to consist of the property distributed in the reorganization
event as described above, the Calculation Agent will make further antidilution
adjustments for later events that affect such property, or any component of
such property, comprising the new physical delivery amount. The Calculation
Agent will do so to the same extent that it would make adjustments if the
common stock of the issuer of the reference shares was outstanding and was
affected by the same kinds of events. If a subsequent reorganization event
affects only a particular component of the physical delivery amount, the
required adjustment will be made with respect to that component, as if it alone
were the physical delivery amount. For example, if the issuer of the reference
shares merges into another company and each share of its common stock is
converted into the right to receive two new shares of the surviving company and
a specified amount of cash, the physical delivery amount will be adjusted to
consist of two new shares and the specified amount of cash per reference share.
The Calculation Agent will adjust the common share component of the new
physical delivery amount to reflect any later stock split or other event,
including any later reorganization event, that affects the new shares, to the
extent described in this section entitled “Antidilution adjustments” as if the
new shares were the common stock of the issuer of the reference shares. In that
event, the cash component will not be adjusted but will continue to be a
component of the physical delivery amount. Consequently, Holders who receive
reference shares at maturity will be entitled to receive, for each $1,000 of
the outstanding principal amount of the Securities being exchanged, all
components of the physical delivery amount in effect on the exchange date, with
each component having been adjusted on a sequential and cumulative basis for
all relevant events requiring adjustment on or before the exchange date.

 

If a reorganization event occurs, the property distributed
in the event will be substituted for the common stock of the issuer of the
reference shares as described above. Consequently, references to the common
stock of the issuer of the reference shares mean any property that is
distributed in a reorganization event and comprises the adjusted physical
delivery amount. Similarly, references to the issuer of the reference shares
mean any successor entity in a reorganization event.

 

Events of Default and Acceleration

 

In case an Event of Default (as defined in the
Indenture) with respect to the Securities shall have occurred and be
continuing, the amount declared due and payable upon any acceleration of the
Securities (in accordance with the acceleration provisions set forth in the 

 

R-11

 

prospectus) will be determined by the Calculation
Agent and will equal, for each security, the arithmetic average, as determined
by the Calculation Agent, of the fair market value of the Securities as
determined by at least three but not more than five broker-dealers (which may
include Credit Suisse Securities (USA) LLC or any of the Company’s other
subsidiaries or affiliates) as will make such fair market value determinations
available to the Calculation Agent.

 

The Company, the Trustee and any agent of the Company
or the Trustee may deem and treat the registered Holder hereof as the absolute
owner of this Note (whether or not this Note shall be overdue and
notwithstanding any notation of ownership or other writing hereon) for the
purpose of receiving payment of, or on account of, the redemption amount
hereof, and for all other purposes, and neither the Company nor the Trustee nor
any agent of the Company or the Trustee shall be affected by any notice to the
contrary.

 

No recourse under or upon any obligation, covenant or
agreement contained in the Indenture or any indenture supplemental thereto or
in any Note, or because of any indebtedness evidenced thereby, shall be had
against any incorporator as such, or against any past, present or future
stockholder, officer, director or employee, as such, of the Company or of any
successor, either directly or through the Company or any successor, under any
rule of law, statute or constitutional provision or by the enforcement of any
assessment or by any legal or equitable proceeding or otherwise, all such
liability being expressly waived and released by the acceptance hereof and as
part of the consideration for the issue hereof.

 

The Calculation Agent for the Securities (the “Calculation
Agent”) is Credit Suisse International. The calculations and determinations of
the Calculation Agent will be final and binding upon all parties (except in the
case of manifest error). The Calculation Agent will have no responsibility for
good faith errors or omissions in its calculations and determinations, whether
caused by negligence or otherwise.

 

Terms used herein that are defined in the Indenture
and not otherwise defined herein shall have the respective meanings assigned
thereto in the Indenture.

 

The laws of the State of New York (without regard to
conflicts of laws principles thereof) shall govern this Note.

 

R-12

 

 FOR VALUE RECEIVED, the undersigned hereby
sell(s), assign(s) and transfer(s) unto

 

	
  [PLEASE
  INSERT SOCIAL SECURITY OR OTHER IDENTIFYING NUMBER OF ASSIGNEE]

  
	
   

  
	
   

  
	
  [PLEASE PRINT OR TYPE
  NAME AND ADDRESS, INCLUDING ZIP CODE, OF ASSIGNEE]

  
	
   

  
	
   

  
	
  the within Note and all
  rights thereunder, hereby irrevocably constituting and appointing

  
	
   

  
	
                                                                                                                                                                                             Attorney
  to transfer such Note on the books of the Issuer, with full power of
  substitution in the premises.

  

 

	
  Dated:

  	
   

  	
   

  	
  Signature:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  NOTICE:The signature to
  this assignment must correspond with the name as written upon the face of the
  within Note in every particular without alteration or enlargement or any
  change whatsoever.

  

 

R-13EXHIBIT 4.7

 

FIRST AMENDMENT TO $53,000,000 TERM
LOAN AGREEMENT

 

This FIRST AMENDMENT TO TERM LOAN AGREEMENT dated as
of November 22, 2005 (this “Amendment”) by and among Annaco General
Partnership, a Delaware general partnership, as borrower (the “Borrower”),
Chriscorp ULC, a Nova Scotia unlimited liability company (“Chriscorp”)
and HenCorp LLC, a Delaware limited liability company (“Hencorp”, and
together with Chriscorp, the “Guarantors” and collectively with the
Borrower, the “Credit Parties”), as guarantors, the lenders (the “Lenders”)
from time to time party to the Term Loan Agreement (as defined below) and Bank
of America, N.A. (as assignee of Banc of America Leasing & Capital, LLC, as
successor to Fleet Capital Corporation), as Administrative and Collateral Agent
(the “Agent”), amends that certain Term Loan Agreement dated as of April
5, 2001 (as amended, restated, supplemented or modified from time to time, the “Term
Loan Agreement”), by and among the Borrower, the Guarantors, the Lenders
and Fleet Capital Corporation, as administrative and collateral agent.

 

WHEREAS, pursuant to that certain Omnibus Assignment
Agreement dated as of November     , 2005 (the “Assignment”),
Banc of America Leasing & Capital, LLC (as successor to Fleet Capital
Corporation) has transferred and assigned to Bank of America, N.A. all of its
interest in and to its rights and obligatons under the Term Loan Agreement and
the Loan Documents and Bank of America, N.A. has assumed all of such rights and
obligations;

 

WHEREAS, the parties hereto wish to amend certain
provisions of the Term Loan Agreement the reflect the Assignment and to extend
the Term Loan Maturity Date;

 

NOW, THEREFORE, in consideration of the foregoing
and the agreements contained herein, the parties hereto hereby agree as
follows:

 

1.     Capitalized Terms. Capitalized terms used herein which are
defined in the Term Loan Agreement have the same meanings herein as therein,
except to the extent that such meanings are amended hereby.

 

2.     Amendments to Term Loan Agreement. Subject to the satisfaction of the terms
and conditions set forth in Section 5 hereof, the Borrower, the Guarantor, each
Lender and the Agent agree that, effective as of the date hereof (the “First
Amendment Effective Date”), the Term Loan Agreement is amended, without
effecting novation, as follows:

 

(a)           Amendment to Section 1.1. Section 1.1 of the Term Loan Agreement is
hereby amended by adding the following new definitions (to the extent not
already included in Section 1.1) and inserting the same in the appropriate
alphabetical location and amending the following definitions (to the extent
already included in Section 1.1) to read in their entirety as follows:

 

“Agent” means Bank of
America, N.A in its capacity as administrative and collateral agent for the
Lenders hereunder, and any successor thereto in such capacity.

 

“Collateral” means
(i) the economic interests in the Borrower held by the General Partners,
(ii) capital stock of Chriscorp held by the Borrower, (iii) the membership
interests in the LLC held by the Borrower and Chriscorp, (iv) the rights and
interests of the LLC under the $60MM Term Loan Facility and in all collateral
pledged as security therefor, and (v) the rights and interests of the Credit
Parties in all funds from time to

 

 

time on deposit in bank accounts of the Credit
Parties maintained with Bank of America, N.A.

 

“Prime Rate” means
the rate of interest per annum publicly announced from time to time by Bank of
America, N.A., as its prime rate in effect at its principal office in Boston,
Massachusetts; each change in the Prime Rate shall be effective from and
including the date such change is publicly announced as being effective.

 

“Special Counsel”
means Edwards Angell Palmer & Dodge LLP, in its capacity as special counsel
to Bank of America, N.A., as Administrative and Collateral Agent of the credit
facility contemplated hereby.

 

“Term Loan Maturity Date”
means April 7, 2007.

 

“$60MM Term Loan Facility”
means the term loan facility established by the LLC in favor of Nova Tube and
Steel, Inc. and American Steel and Aluminum Corporation under the Term Loan
Agreement of even date herewith among Nova Tube and Steel, Inc. and American
Steel and Aluminum Corporation, as borrowers, Integrated Steel Industries, Inc.
as guarantor, the LLC as Lender and Fleet Capital Corporation as Administrative
and Collateral Agent ,as such agreement may be amended, supplemented or otherwise
modified from time to time.

 

(b)           Amendment to Section 8.5. Section 8.5 of the Term Loan Agreement is
hereby deleted in its entirety and replaced with the following new Section 8.5:

 

“8.5        Investments; Hedging Agreements. The Credit Parties will not make or permit
to remain outstanding any Investment, except (i) Investments by the Borrower in
the Guarantors, (ii) Investments by Chriscorp in the LLC, (iii) the loan
under the $60MM Term Loan Facility, and (iii) Investments consisting of
funds of the Credit Parties on deposit in the bank accounts listed on Schedule
5.14; provided that the aggregate amount of all funds of the Credit Parties on
deposit in bank accounts maintained at financial institutions other than Bank
of America, N.A. shall not exceed $75,000 at any time. The Credit Parties will
not enter into any Hedging Agreements.”

 

(c)           Amendment to Section 11.1. Section 11.1 of the Term Loan Agreement is
hereby amended by deleting subclause (c) thereof and replacing it in its
entirety with the following new subclause (c):

 

“(c)         if to the Agent, to Bank of America, N.A., One
Federal Street, Mail Stop MA5-503-07-19, Boston, Massachusetts 02110,
Attention:  Gregory Kress (Fax no.: (617)
654-1167), with a copy to Edwards Angell Palmer & Dodge LLP, 111 Huntington
Avenue at Prudential Center, Boston, Massachusetts 02199, Attention:  David Ruediger (Fax no. (617) 227-4420); and”

 

(d)           Amendment to Schedule 2.1. Schedule 2.1 to the Term Loan Agreement
shall be amended in its entirety as set forth on the new Schedule 2.1 attached
hereto.

 

3.             Confirmation
of Guaranty by Guarantor. Each Guarantor hereby confirms and agrees that
all indebtedness, obligations and liabilities of the Borrower under the Term
Loan Agreement as amended hereby, whether any such indebtedness, obligations
and liabilities are now existing or hereafter arising, due or to become due,
actual or contingent, or direct or indirect, constitute “Obligations” under and
as defined in the Term Loan Agreement and, subject to the limitation set forth
in Section 3.8 of the

 

2

 

Term Loan
Agreement, are guarantied by and entitled to the benefits of the Guaranty. Each
Guarantor hereby ratifies and confirms the terms and provisions of the Guaranty
and agrees that all of such terms and provisions remain in full force and
effect.

 

4.     No Default; Representations and Warranties,
etc. Each Credit Party
hereby represents, warrants and confirms that: (a) the representations and
warranties contained in Article 5 of the Term Loan Agreement are true and
correct in all material respects on and as of the date hereof as if made on
such date (except to the extent that such representations and warranties
expressly relate to an earlier date); (b) after giving effect to this
Amendment, such Credit Party shall be in compliance in all material respects
with all of the terms and provisions set forth in the Term Loan Agreement on
its part to be observed or performed thereunder; (c) after giving effect
to this Amendment, no Default shall have occurred and be continuing;
(d) the execution, delivery and performance by such Credit Party of this
Amendment (i) has been duly authorized by all necessary action on the part
of such Credit Party, (ii) will not violate any applicable law or
regulation or the organizational documents of such Credit Party,
(iii) will not violate or result in a default under any material indenture,
agreement or other instrument binding on such Credit Party, and (iv) does
not require any consent, waiver or approval of or by any Person (other than the
Agent and Lenders) which has not been obtained.

 

5.     Conditions to Effectiveness. The effectiveness of this Amendment shall
be conditioned upon the satisfaction of the following conditions precedent:

 

(a)           The Agent shall have received a counterpart
of this Amendment duly executed by the Borrower, the Guarantors and each
Lender;

 

(b)           The Agent shall have received evidence that
all conditions precedent to the effectiveness of the to the $60MM Term Loan
Facility Amendment (as defined herein) have been duly executed, delivered and
satisfied; and

 

(c)           The Agent shall have received and approved
such other documents, certificates and information as the Agent shall
reasonably request in connection with the Assignment, including, without
limitation all necessary amendments, modifications or confirmations to the Loan
Documents in effect as of the First Amendment Effective Date duly executed and
delivered so as to ensure the continued effectiveness of the security interests
created thereby and to reflect the Assignment, in each case covering such
matters as shall be requested by the Agent.

 

6.     Acknowledgement. The parties hereto hereby acknowledge and
agree that all references in the Term Loan Agreement to the $60MM Term Loan
Facility shall be deemed to refer to the $60MM Term Loan Facility as amended
from time to time and as amended by that certain Fourth Amendment to Term Loan
Agreement dated as of November 22, 2005 (the “$60MM Term Loan Facility
Amendment”) by and among Nova Tube and Steel, American Steel and Aluminum
Corporation, Nova Tube Indiana, LLC, the guarantors party thereto, Hencorp LLC
and Bank of America, N.A. as administrative and collateral agent.

 

7.     Miscellaneous.

 

(a)           The Credit Parties, the Agent and the Lenders
hereby ratify and confirm the terms and provisions of the Term Loan Agreement
and the other Loan Documents and agree that, except to the extent specifically
amended hereby and except as otherwise specifically amended in one or more
amendments to the Loan Documents of even date herewith, the Term Loan
Agreement, the other Loan Documents and all related documents shall remain in
full force and effect. Nothing contained herein shall constitute a waiver of
any provision of the Loan Documents, except such waivers as are expressly set
forth herein.

 

3

 

(b)           This Amendment may be executed in any number of
counterparts, each of which, when executed and delivered, shall be an original,
but all counterparts shall together constitute one instrument. Counterparts may be signed and delivered by
facsimile, each of which will be binding when sent.

 

(c)           The Borrower agrees to pay all reasonable
expenses, including legal fees and disbursements incurred by the Lenders in
connection with this Amendment and the transactions contemplated hereby.

 

(d)           This Amendment shall be governed by the laws
of The Commonwealth of Massachusetts and shall be binding upon and inure to the
benefit of the parties hereto and their respective successors and assigns.

 

 

[The remainder of this page is intentionally left blank.]

 

4

 

IN WITNESS WHEREOF, the
parties hereto have caused this Amendment to be duly executed by their
respective authorized officers as of the day and year first above written.

 

	
   

  	
  BORROWER

  
	
   

  	
   

  
	
   

  	
  ANNACO GENERAL PARTNERSHIP

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ D. Bryan Jones

  	
   

  
	
   

  	
  Name:

  	
  D. Bryan Jones

  
	
   

  	
  Title:

  	
  President

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  GUARANTORS

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  CHRISCORP ULC

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ D. Bryan Jones

  	
   

  
	
   

  	
  Name:

  	
  D. Bryan Jones

  
	
   

  	
  Title:

  	
  President

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  HENCORP LLC

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ B. Neil Snellings, Jr.

  	
   

  
	
   

  	
  Name:

  	
  B. Neil Snellings, Jr.

  
	
   

  	
  Title:

  	
  President

  
						

 

 

	
   

  	
  AGENT

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  BANK OF AMERICA, N.A., as assignee of Banc of America Leasing &
  Capital, LLC (successor to Fleet Capital Corporation), as Administrative and
  Collateral Agent

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Gregory Kress

  	
   

  
	
   

  	
  Name:

  	
  Gregory Kress

  
	
   

  	
  Title:

  	
  Vice President

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