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                                                                     EXHIBIT 4.2

THIS WARRANT AND THE SECURITIES ISSUABLE UPON EXERCISE OF THIS WARRANT HAVE NOT
BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE "SECURITIES
ACT"). THE SECURITIES REPRESENTED HEREBY ARE RESTRICTED AND MAY NOT BE SOLD,
OFFERED FOR SALE, ASSIGNED, TRANSFERRED OR OTHERWISE DISPOSED OF, UNLESS
REGISTERED PURSUANT TO THE PROVISIONS OF THE SECURITIES ACT OR AN OPINION OF
COUNSEL, REASONABLY ACCEPTABLE TO THE COMPANY, IS OBTAINED STATING THAT SUCH
DISPOSITION IS IN COMPLIANCE WITH AN AVAILABLE EXEMPTION FROM SUCH REGISTRATION.

August __, 2007                                                      No. ____ __

                          BLUEFIRE ETHANOL FUELS, INC.

                (Organized under the laws of the State of Nevada)

             "A" WARRANT FOR THE PURCHASE OF SHARES OF COMMON STOCK
             ------------------------------------------------------

         FOR VALUE RECEIVED, BLUEFIRE ETHANOL FUELS, INC., a corporation
organized under the laws of the State of Nevada (the "Company"), hereby
certifies that __________________, its successors and assigns (the "Holder"), is
the owner of this "A" warrant (the "Warrant") which initially entitles the
Holder, subject to the provisions hereof, to purchase from the Company at any
time and from time to time on and after the date hereof (the "Original Issue
Date") until 5:00 p.m. California local time on the Expiration Date (as defined
in Section 3 herein), up to _________ duly authorized, validly issued, fully
paid and non-assessable shares of Common Stock (as defined below) at the
Exercise Price (as defined in Section 2 herein) per share of Common Stock on the
terms and conditions hereinafter set forth. This warrant is issued in connection
with a senior secured convertible promissory note dated August __, 2007 executed
by the Company in favor of the Holder in an aggregate principal amount of
$__________ (the "Note").

         The term "Common Stock" means the Common Stock, par value $0.001 per
share, of the Company as constituted on the Original Issue Date. The number of
shares of Common Stock to be received upon the exercise of this Warrant shall be
adjusted from time to time as hereinafter set forth. The shares of Common Stock
deliverable upon such exercise, and as adjusted from time to time, are
hereinafter referred to as "Warrant Shares." The term "Company" means and
includes the corporation named above as well as any successor corporation. The
term "Business Day" means any day except a Saturday, Sunday or other day on
which commercial banks in New York, New York are authorized by law to close.

         The Holder agrees with the Company that this Warrant is issued, and all
the rights hereunder shall be held subject to, all of the conditions,
limitations and provisions set forth herein.

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         1. NUMBER OF WARRANT SHARES. This Warrant Entitles the Holder to
purchase up to _________ duly authorized, validly issued, fully paid and
nonassessable shares of the Company's Common Stock, as such amount may be
adjusted under Section 10 hereof.

         2. EXERCISE PRICE. The Exercise Price shall be $________ per share
subject to adjustment pursuant to Section 10 hereof (originally and as adjusted,
the "Exercise Price").

         3. EXERCISE OF WARRANT. This Warrant may be exercised in whole or in
part, at any time, or from time to time during the period commencing on the
Original Issue Date and expiring on August 21, 2010, or if such date is not a
Business Day, then on the next succeeding day which shall be a Business Day (the
"Expiration Date").

         4. NOTICE OF EXERCISE. (a) The purchase rights represented by this
Warrant may be exercised by presentation and surrender of this Warrant to the
Company at its principal office, at the office of its stock transfer agent or at
any other warrant agent designated by the Company (the "Warrant Agent") if any,
with the Warrant Exercise Form, a form of which is attached hereto as EXHIBIT A,
duly executed and accompanied by payment of the Exercise Price for the number of
Warrant Shares specified in such form and instruments of transfer, if
appropriate, duly executed by the Holder or its duly authorized attorney.

                  (b) Notwithstanding any provisions herein to the contrary, if
(i) the fair market value of one share of the Company's Common Stock is greater
than the Exercise Price (at the date of calculation as set forth below) and (ii)
any portion of the Warrant Shares issuable upon exercise of this Warrant are not
covered by an effective registration statement under the Securities Act, then in
lieu of exercising this Warrant by payment of cash, the Holder may elect to
receive shares equal to the value (as determined below) of this Warrant (or the
portion thereof being exercised) by surrender of this Warrant at the principal
office of the Company or the Warrant Agent together with an executed Cashless
Exercise Form in the Form attached hereto as EXHIBIT B in which event the
Company shall issue to the Holder a number of shares of Common Stock computed
using the following formula:

                  X = Y (A-B)
                     --------
                        A

                  Where X =         the number of shares of Common Stock to be
                                    issued to the Holder

                                    Y =    the number of shares of Common
                                           Stock issuable under the Warrant or,
                                           if only a portion of the Warrant
                                           Certificate is being exercised, the
                                           portion of the Warrant Certificate
                                           being exercised (at the date of such
                                           calculation)

                                    A =     the fair market value of one share
                                            of the Company's Common Stock (at
                                            the date of such calculation)

                                    B =     Exercise Price (as adjusted to the
                                            date of such calculation)

         For purposes of the above calculation, the fair market value of one
share of Common Stock shall be determined by taking the average of the closing
prices of the sales of any shares of Common Stock on all securities exchanges on

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which the Common Stock is listed, or, if there have been no sales on any such
exchange on any day, the average of the highest bid and lowest asked prices on
all such exchanges at the end of such day, or, if on any day the Common Stock is
not so listed, the average of the representative bid and asked prices quoted in
the OTC Bulletin Board as of 4:00 p.m., New York time, or, if on any day any
Common Stock is not quoted on the OTC Bulletin Board, the average of the highest
bid and lowest asked prices on such day in the domestic over-the-counter market
as reported by the National Quotation Bureau Incorporated, or any similar
successor organization, in each such case averaged over a period of 21 days
consisting of the day as of which the fair market value is being determined and
the 20 consecutive Business Days prior to such day. If at any time the Common
Stock is not listed on any securities exchange or quoted in the OTC Bulletin
Board or the over-the-counter market, the fair market value of one share of
Common Stock shall be the amount determined in good faith by the Company's Board
of Directors.

                  (c) Payment of the aggregate Exercise Price shall be made at
the Holder's election (i) by wire transfer in cash or by certified check or
cashier's check, payable to the order of the Company in accordance with the
provisions of Section 4(a), (ii) by "cashless exercise" in accordance with the
provisions of Section 4(b), or (iii) by a combination of the foregoing methods
of exercise selected by the Holder. If this Warrant should be exercised in part
only, the Company shall, within five (5) Business Days of the surrender of this
Warrant, execute and deliver a new warrant evidencing the rights of the Holder
thereof to purchase the balance of the Warrant Shares issuable hereunder.

                  (d) Upon receipt by the Company of this Warrant, together with
the Warrant Exercise Form and/or the Cashless Exercise Form, as the case may be,
and the Exercise Price at its office, or by the Warrant Agent at its office, in
each case in the proper form for exercise, the Holder shall immediately be
deemed to be the Holder of record of the shares of Common Stock issuable upon
such exercise, notwithstanding that the stock transfer books of the Company
shall then be closed or that certificates representing such shares of Common
Stock shall not then be actually delivered to the Holder. The Company shall pay
any and all documentary stamp or similar issue or transfer taxes payable in
respect of the issue or delivery of shares of Common Stock on exercise of this
Warrant, but in no event shall the Company be responsible or liable for income
taxes or transfer taxes upon the issuance or transfer of the Warrant or the
Warrant Shares.

                  (e) Notwithstanding anything to the contrary contained in this
Warrant, this Warrant shall not be exercisable by the Holder hereof to the
extent (but only to the extent) that, if exercisable by the Holder, the Holder
or any of its Affiliates would beneficially own in excess of 4.99% (the "Maximum
Percentage") of the outstanding Common Shares. To the extent the above
limitation applies, the determination of whether this Warrant shall be
exercisable (vis-a-vis other convertible, exercisable or exchangeable securities
owned by the Holder) and of which warrants shall be exercisable (as among all
warrants owned by the Holder) shall, subject to such Maximum Percentage
limitation, be determined on the basis of the first submission to the Company
for conversion, exercise or exchange (as the case may be). No prior inability to
exercise this Warrant pursuant to this paragraph shall have any effect on the
applicability of the provisions of this paragraph with respect to any subsequent
determination of exercisability. For the purposes of this paragraph, beneficial
ownership and all determinations and calculations (including, without

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limitation, with respect to calculations of percentage ownership) shall be
determined by the Holder in accordance with Section 13(d) of the Securities
Exchange Act of 1934 Act (the "Exchange Act") and the rules and regulations
promulgated thereunder. The provisions of this paragraph shall be implemented in
a manner otherwise than in strict conformity with the terms of this paragraph to
correct this paragraph (or any portion hereof) which may be defective or
inconsistent with the intended Maximum Percentage beneficial ownership
limitation herein contained or to make changes or supplements necessary or
desirable to properly give effect to such Maximum Percentage limitation. The
limitations contained in this paragraph shall apply to a successor Holder of
this Warrant. For purposes of this Warrant, in determining the number of
outstanding Common Shares, the Holder may rely on the number of outstanding
Common Shares as reflected in (1) the Company's most recent Form 10-KSB, Form
10-QSB, Current Report on Form 8-K or other public filing with the SEC (as the
case may be), (2) a more recent public announcement by the Company or (3) any
other notice by the Company setting forth the number of Common Shares
outstanding. For any reason at any time, upon the written or oral request of the
Holder, the Company shall within one (1) Business Day confirm orally and in
writing to the Holder the number of Common Shares then outstanding, including by
virtue of any prior conversion or exercise of convertible or exercisable
securities into Common Shares, including, without limitation, pursuant to this
Warrant or securities issued pursuant to the Note. By written notice to the
Company, the Holder may increase or decrease the Maximum Percentage to any other
percentage specified in such notice, provided that (i) any such increase will
not be effective until the sixty-first (61st) day after such notice is delivered
to the Company, and (ii) any such increase or decrease will apply only to the
Holder and not to any other holder of Warrants.

                  5. COMPANY'S FAILURE TO TIMELY DELIVER SECURITIES. The Company
shall promptly (but in no event later than three Business Days after the Date of
Exercise (as defined below)) issue and deliver to the Holder, a certificate for
the Warrant Shares issuable upon such exercise, which, unless otherwise required
by applicable law, shall be free of restrictive legends. The Company shall, upon
request of the Holder and subsequent to the date on which a registration
statement covering the resale of the Warrant Shares has been declared effective
by the Commission, use its reasonable best efforts to deliver Warrant Shares
following the Date of Exercise electronically through the Depository Trust
Corporation (the "DTC") or another established clearing corporation performing
similar functions, if available, PROVIDED, that, the Company may, but will not
be required to change its transfer agent if its current transfer agent cannot
deliver Warrant Shares electronically through the DTC. If the Company shall
fail, for any reason or for no reason, to issue to the Holder within three (3)
Business Days of receipt of the Warrant Exercise Form or the Cashless Exercise
Form, a certificate for the number of Common Shares to which the Holder is
entitled and register such Common Shares on the Company's share register or to
credit the Holder's balance account with DTC for such number of Common Shares to
which the Holder is entitled upon the Holder's exercise of this Warrant (as the
case may be), then, in addition to all other remedies available to the Holder,
the Company shall pay in cash or Common Stock, at the option the Company, to the
Holder on each day after such third (3rd) Business Day that the issuance of such
Common Shares is not timely effected an amount equal to 1.5% of the product of
(A) the sum of the number of Common Shares not issued to the Holder on a timely
basis and to which the Holder is entitled and (B) the volume weighted average
closing price of the Common Shares for the five (5) Business Day period

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immediately preceding the last possible date which the Company could have timely
issued such Common Shares to the Holder. A "Date of Exercise" means the date on
which the Holder shall have delivered to the Corporation: (i) the Warrant
Exercise Form or the Cashless Exercise Form, appropriately completed and duly
signed and (ii) if such Holder is not utilizing the cashless exercise provisions
set forth in this Warrant, payment of the Exercise Price for the number of
Warrant Shares so indicated by the Holder to be purchased.

                  If by the third Business Day after a Date of Exercise the
Company fails to deliver the required number of Warrant Shares in the manner
required pursuant to this Section, then the Holder will have the right to
rescind such exercise.

                  If by the third Business Day after a Date of Exercise the
Company fails to deliver the required number of Warrant Shares in the manner
required pursuant to this Section, and if after such third Business Day and
prior to the receipt of such Warrant Shares, the Holder or the Holder's broker
purchases (in an open market transaction or otherwise) shares of Common Stock to
deliver in satisfaction of a sale by the Holder of the Warrant Shares which the
Holder anticipated receiving upon such exercise (a "Buy-In"), then the Company
shall (1) pay in cash or stock to the Holder the amount by which (x) the
Holder's total purchase price (including brokerage commissions, if any) for the
shares of Common Stock so purchased exceeds (y) the amount obtained by
multiplying (A) the number of Warrant Shares that the Company was required to
deliver to the Holder in connection with the exercise at issue by (B) the
closing bid price of the Common Stock on the Date of Exercise and (2) at the
option of the Holder, either reinstate the portion of the Warrant and equivalent
number of Warrant Shares for which such exercise was not honored or deliver to
the Holder the number of shares of Common Stock that would have been issued had
the Company timely complied with its exercise and delivery obligations
hereunder. The Holder shall provide the Company written notice indicating the
amounts payable to the Holder in respect of the Buy-In.

                  The Company's obligations to issue and deliver Warrant Shares
in accordance with the terms hereof are absolute and unconditional, irrespective
of any action or inaction by the Holder to enforce the same, any waiver or
consent with respect to any provision hereof, the recovery of any judgment
against any person or any action to enforce the same, or any setoff,
counterclaim, recoupment, limitation or termination, or any breach or alleged
breach by the Holder or any other person of any obligation to the Company or any
violation or alleged violation of law by the Holder or any other person, and
irrespective of any other circumstance which might otherwise limit such
obligation of the Company to the Holder in connection with the issuance of
Warrant Shares. Nothing herein shall limit a Holder's right to pursue any other
remedies available to it hereunder, at law or in equity including, without
limitation, a decree of specific performance and/or injunctive relief with
respect to the Company's failure to timely deliver the required Warrant Shares
in the manner required pursuant to this Section upon exercise of the Warrant as
required pursuant to the terms hereof.

         6. RESERVATION OF SHARES. The Company will at all times reserve for
issuance and delivery upon exercise of this Warrant all shares of Common Stock
or other shares of capital stock of the Company (and other securities) from time
to time receivable upon exercise of this Warrant. All such shares (and other
securities) shall be duly authorized and, when issued upon such exercise, shall
be validly issued, fully paid and non-assessable and free of all encumbrances.

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         7. FRACTIONAL SHARES. No fractional shares or script representing
fractional shares shall be issued upon the exercise of the Warrant, but the
Company shall pay within ten (10) Business Days the Holder in cash an amount
equal to the fair market value of such fractional share of Common Stock in lieu
of each fraction of a share otherwise called for upon any exercise of the
Warrant, as determined in good faith by the Board of Directors of the Company.

         8. EXCHANGE, TRANSFER, ASSIGNMENT OR LOSS OF WARRANT. This Warrant is
exchangeable, without expense, at the option of the Holder, upon presentation
and surrender hereof to the Company or at the office of its Warrant Agent, if
any, for other warrants of different denominations, entitling the Holder to
purchase in the aggregate the same number of shares of Common Stock issusable
hereunder. Upon surrender of this Warrant to the Company or at the office of its
Warrant Agent, if any, with an appropriate form of assignment duly executed and
funds sufficient to pay any transfer tax, the Company shall, without charge,
execute and deliver a new warrant in the name of the assignee named in such
instrument of assignment and this Warrant shall promptly be canceled. This
Warrant may be divided or combined with other warrants that carry the same
rights (including registration rights) upon presentation hereof at the office of
the Company or at the office of its Warrant Agent, if any, together with a
written notice specifying the names and denominations in which new warrants are
to be issued and signed by the Holder hereof.

         9. RIGHTS OF THE HOLDER. Prior to exercise of the Warrant, the Holder,
in its capacity hereunder, shall not, by virtue hereof, be entitled to any
rights as a shareholder of the Company, either at law or in equity, and the
rights of the Holder, in its capacity hereunder, are limited to those expressed
in this Warrant.

         10. ADJUSTMENT OF EXERCISE PRICE AND NUMBER OF SHARES.

         The number of Warrant Shares issuable upon the exercise of this Warrant
Certificate and the Exercise Price shall be subject to adjustment from time to
time upon the happening of certain events, as follows:

                  10.1 MERGER. If at any time there shall be a merger or
consolidation of the Company with or into another corporation when the Company
is not the surviving corporation, then, as part of such merger or consolidation,
lawful provision shall be made so that the Holder shall thereafter be entitled
to receive upon exercise of rights herein granted, during the period specified
herein and upon payment of the aggregate Exercise Price, if any, the number of
shares of stock or other securities or property of the successor corporation
resulting from such merger or consolidation, to which a holder of the stock
deliverable upon exercise of the rights granted in this Warrant would have been
entitled in such merger or consolidation if such rights had been exercised
immediately before such merger or consolidation. In any such case, appropriate
adjustment shall be made in the application of the provisions of this Warrant
with respect to the rights and interests of the Holder after the merger or
consolidation. The Company will not effect any such merger or consolidation
unless, prior to the consummation thereof, the successor corporation shall
assume, by written instrument reasonably satisfactory in form and substance to
the Holder, the obligations of the Company under this Warrant.

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                  10.2 RECLASSIFICATION, ETC. If the Company at any time shall,
by combination or reclassification of securities or otherwise, change any of the
securities as to which purchase rights under this Warrant exist into the same or
a different number of securities of any other class or classes, this Warrant
shall thereafter represent the right to acquire such number and kind of
securities as would have been issuable as the result of such change with respect
to the securities which were subject to the purchase rights under this Warrant
immediately prior to such combination, reclassification or other change.

                  10.3 STOCK DIVIDENDS, SPLITS, SUBDIVISIONS OR COMBINATION OF
SHARES. If the Company at any time shall pay a stock dividend on its Common
Stock or otherwise makes a distribution on any class of capital stock that is
payable in shares of Common Stock, split or subdivide its Common Stock, the
Exercise Price shall be proportionately decreased and the number of Warrant
Shares issuable pursuant to this Warrant shall be proportionately increased. If
the Company at any time shall combine or reverse split its Common Stock, the
Exercise Price shall be proportionately increased and the number of Warrant
Shares issuable pursuant to this Warrant shall be proportionately decreased.

                  10.4 ANTI-DILUTION PROTECTION. This Warrant is subject to
"full-ratchet" anti-dilution protection in relation to the issuance by the
Company of any additional shares of stock, options, warrants or any securities
exchangeable into any of the foregoing, excluding any Common Stock issued as
compensation or options issued in connection with an employee incentive plan
that has been approved by the Board (the "ADDITIONAL SHARES"). If the Company
issues any Additional Shares in exchange for consideration in an amount per
Additional Share less than the Exercise Price in effect immediately prior to
such issuance or sale of such Additional Share, then the Exercise Price shall be
adjusted to equal the consideration paid per Additional Share.

                  10.5 OTHER CHANGES. If any other event occurs as to which the
other provisions of this Section 10 are not strictly applicable or if strictly
applicable, would not fairly protect the rights of the Holder in accordance with
such provisions, then the Company shall make an adjustment in the number of and
class of shares available under this Warrant, the Exercise Price or the
application of such provisions, so as to protect such rights as aforesaid. The
adjustment shall be such as will give the Holder upon exercise for the same
aggregate Exercise Price the total number, class and kind of shares as the
Holder would have owned had this Warrant been exercised prior to the event and
had the Holder continued to hold such shares until after the event requiring
adjustment.

                  10.6 NOTICE OF ADJUSTMENTS; NOTICES. Whenever the Exercise
Price or number of shares hereunder shall be adjusted, the Company shall issue a
certificate signed by its President, Chief Executive Officer or Chief Financial
Officer setting forth, in reasonable detail, the event requiring the adjustment,
the amount of the adjustment, the method by which such adjustment was calculated
and the Exercise Price and number of shares hereunder after giving effect to
such adjustment, and shall cause a copy of such certificate to be mailed (by
first class mail, postage prepaid) to the Holder. The Company shall give written
notice to the Holder at least 20 days prior to the date on which the Company
closes its books or takes a record for determining rights to receive any
dividends or distributions.

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                  10.7 NOTICES OF CORPORATE EVENTS. If the Company (i) shall
take a record of the holders of its Common Stock for the purpose of entitling
them to receive any dividend or other distribution of cash, securities or other
property in respect of its Common Stock, including without limitation granting
any rights or warrants to subscribe for, purchase or otherwise acquire any
shares of stock of any class or any other securities, or to receive any other
right; (ii) authorizes or approves any (a) capital reorganization of the
Company, (b) any reclassification of the capital stock of the Company, (c) any
consolidation or merger of the Company with or into another corporation, (d) any
sale of all or substantially all of its assets in one or a series of related
transactions or (e) any tender offer or exchange offer pursuant to which holders
of the Common Stock are permitted to tender or exchange their shares for other
securities, cash or property or (iii) authorizes the voluntary dissolution,
liquidation or winding up of the Company, then the Company shall mail or cause
to be mailed to each Holder a notice describing the material terms and
conditions of such transaction at least 20 calendar days prior to the applicable
record or effective date on which a person would need to hold Common Stock in
order to participate in or vote with respect to such transaction, and the
Company will take all steps reasonably necessary in order to insure that the
Holder is given the practical opportunity to exercise this Warrant prior to such
time so as to participate in or vote with respect to such transaction; PROVIDED,
HOWEVER, that the failure to deliver such notice or any defect therein shall not
affect the validity of the corporate action required to be described in such
notice.

         11. TRANSFER TO COMPLY WITH THE SECURITIES ACT. The Warrant and any
Warrant Shares may not be sold, transferred, pledged, hypothecated or otherwise
disposed of unless registered under the Securities Act or pursuant to an
available exemption from such registration, provided that the transferor
delivers to the Company an opinion of counsel reasonably satisfactory to the
Company confirming the availability of such exemption.

         12. REQUIRED RIGHTS; LIQUIDATED DAMAGES.

                  (a) The Company shall prepare, and, as soon as practicable but
in no event later than one hundred twenty (120) calendar days from the date
hereof (the "Filing Deadline"), file with the Securities and Exchange Commission
(the "Commission") a Registration Statement or Registration Statements (the
"Registration Statement(s)") (as is necessary from time to time) on Form SB-2
(or, if such form is unavailable for such a registration, on such other form as
is available for such a registration), covering the resale of all of the Initial
Registrable Securities, which Registration Statement(s) shall state that, in
accordance with Rule 416 promulgated under the Securities Act, such Registration
Statement(s) also covers such indeterminate number of additional shares of
Common Stock as may become issuable upon stock splits, stock dividends or
similar transactions.

                  (b) If the Company shall not have filed a Registration
Statement with respect to the Initial Registrable Securities by the Filing
Deadline then the Company shall pay as liquidated damages and not as a penalty
to the Noteholder, at the Company's option (i) a cash payment equal to three
percent (3%) of the Face Amount or (ii) additional shares of Common Stock (the
"Filing Liquidated Damages Shares") equal to three percent (3%) of the Face
Amount divided by the Market Price for such Common Stock.

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                  (c) The Company shall use its best efforts to have the
Registration Statement(s) declared effective by the SEC within ninety (90)
calendar days after the filing thereof.

                  (d) If the Registration Statement shall not have been declared
effective by the Commission within ninety (90) calendar days after the Filing
Deadline (the "Effective Deadline"), then the Company shall pay as liquidated
damages and not as a penalty to the Noteholder, at the Company's option (i) a
cash payment equal to two percent (2%) of the Face Amount or (ii) additional
shares of Common Stock (the "Effectiveness Liquidated Damages Shares") in an
amount equal to two percent (2%) of the Face Amount for each month after the
Effective Deadline that the Registration Statement has not been declared
effective by the Commission (which amount shall be prorated on a daily basis for
any period of less than one month). Notwithstanding the foregoing, if all of the
Initial Registrable Securities to be included in a Registration Statement filed
hereunder cannot be so included due to Commission Comments then the liquidated
damages set forth in this paragraph (d) shall not be applicable to the amount
not permitted to be included in such Registration Statement.

                  (e) If the Company does not consummate a Qualified Financing
within 120 days after the Closing Date than the Company shall pay to the
Noteholder at the Company's option (i) a cash payment to the Noteholder in an
amount equal to one percent (1%) of the Face Amount or (ii) additional shares of
Common Stock (the "Second Round Damages Shares") equal to one percent (1%) of
the Face Amount divided by the Market Price for such Common Stock per month
until a Qualified Financing has been consummated (which amount shall be prorated
on a daily basis for any period of less than one month).

                  (f) If all of the Registrable Securities to be included in a
Registration Statement filed hereunder cannot be so included due to Commission
Comments, then the Company shall prepare and file as soon as practicable but in
no event later than thirty (30) calendar days from the date Commission Comments
are received by the Company (the "Subsequent Filing Deadline") for such
Registration Statement(s) as may be necessary in order to ensure all Registrable
Securities are covered by an existing and effective Registration Statement. Any
Registration Statements to be filed under this Section 6 shall be for an
offering to be made on Form SB-2 (or on such other form appropriate for such
purpose). The Company shall cause such Registration Statement to be declared
effective under the Securities Act as soon as possible but in no event later
than ninety (90) calendar days from the Subsequent Filing Deadline (the
"Subsequent Effective Deadline"), and shall use its best efforts to keep such
Registration Statement continuously effective under the Securities Act during
the entire Effectiveness Period.

                  (g) If (i) the Company shall not have filed a Registration
Statement with respect to any Registrable Securities by the Subsequent Filing
Deadline or (ii) the Registration Statement shall not have been declared
effective by the Commission by the Subsequent Effective Deadline as set forth in
paragraph (f) above, then the Company shall pay liquidated damages in the
amounts as set forth in paragraphs (b) and (d) respectively related to such
registration and effectiveness of any Registration Statement under paragraph
(f).

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                  (h) Notwithstanding anything to the contrary contained in this
Section 6, the maximum aggregate amount of all Liquidated Damages payable by the
Company to the Noteholder shall not exceed fifteen percent (15%) of the Face
Amount. In addition the parties agree that the Company will not be liable for
any Liquidated Damages hereunder in respect of the Warrants.

                  (i) If at any time after the Filing Deadline there is not an
effective Registration Statement covering all of the Registrable Securities and
the Company shall determine to prepare and file with the Commission a
Registration Statement relating to an offering for its own account or the
account of others under the Securities Act of any of its equity securities
(excluding a statement filed on form S-8), then the Company shall send to the
Noteholder written notice of such determination and, if within fifteen days
after receipt of such notice, Noteholder shall so request in writing, the
Company shall include in the Registration Statement all or any part of such
Registrable Securities Noteholder requests to be registered; provided, that, the
Company shall not be required to register any Registrable Securities pursuant to
this paragraph (i) that are eligible for resale pursuant to Rule 144(k)
promulgated under the Securities Act or that are the subject of a then effective
Registration Statement.

                  (j) DEFINITIONS.

"Commission Comments" means written comments which are received by the Company
from the Commission, and a copy of which shall have been provided by the Company
to the Noteholder, to a filed Registration Statement which limit the amount of
shares of Common Stock which may be included therein to a number of shares which
is less than such amount sought to be included thereon as filed with the
Commission.

"Effectiveness Period" means, as to any Registration Statement required to be
filed pursuant to this Note, the period commencing on the Effective Date or
Subsequent Effective Date, as the case may be, of such Registration Statement
and ending on the earliest to occur of (a) the second anniversary of such
Effective Date or Subsequent Effective Date, (b) such time as all of the
Registrable Securities covered by such Registration Statement have been publicly
sold by the Noteholders of the Registrable Securities included therein, or (iii)
such time as all of the Registrable Securities covered by such Registration
Statement may be sold by the Noteholders pursuant to Rule 144(k) as determined
by the counsel to the Company pursuant to a written opinion letter to such
effect, addressed and acceptable to the Company's transfer agent and the
affected Noteholders.

"Face Amount" means the face amount of this Note on the Closing Date.

"Initial Registrable Securities" means the Conversion Shares and the Warrant
Shares.

"Other Registrable Securities" means the Interest Shares, the Filing Liquidated
Damages Shares, Effectiveness Liquidated Damages Shares and the Second Round
Damages Shares.

"Registrable Securities" means collectively the Initial Registrable Securities
and the Other Registrable Securities.

                                       10

<PAGE>

"Liquidated Damages" means all amounts of cash and Common Stock paid to the
Noteholder as liquidated damages under sections (b), (d), (f) and (h) hereof.

         13. INDEMNIFICATION.

                  (a) The Company will indemnify the Holder, each of its
officers, directors, partners, members, managers, legal counsel, and accountants
and each person controlling the Holder within the meaning of Section 15 of the
Securities Act, and each underwriter, if any, and each person who controls
within the meaning of Section 15 of the Securities Act any underwriter, against
all expenses, claims, losses, damages, and liabilities (or actions, proceedings,
or settlements in respect thereof) arising out of or based on any untrue
statement (or alleged untrue statement) of a material fact contained in any
prospectus, offering circular, or other document (including any related
registration statement, notification, or the like), incident to any such
registration, qualification, or compliance, or based on any omission (or alleged
omission) to state therein a material fact required to be stated therein or
necessary to make the statements therein not misleading, or any violation by the
Company of the Securities Act or any rule or regulation thereunder applicable to
the Company and relating to action or inaction required of the Company in
connection with any such registration, qualification, or compliance, and will
reimburse the Holder, each of its officers, directors, partners, members,
managers, legal counsel, and accountants and each person controlling the Holder,
each such underwriter, and each person who controls any such underwriter, for
any legal and any other expenses reasonably incurred in connection with
investigating and defending or settling any such claim, loss, damage, liability,
or action, provided that the Company will not be liable in any such case to the
extent that any such claim, loss, damage, liability, or expense arises out of or
is based on any untrue statement or omission based upon written information
furnished to the Company by the Holder and stated to be specifically for use
therein. It is agreed that the indemnity agreement contained in this Section
shall not apply to amounts paid in settlement of any such loss, claim, damage,
liability, or action if such settlement is effected without the consent of the
Company (which consent shall not be unreasonably withheld).

                  (b) The Holder will, if Warrant Shares held by it are included
in the securities as to which such registration, qualification, or compliance is
being effected, indemnify the Company, each of its directors, officers,
partners, legal counsel, and accountants and each of its directors, officers,
partners, legal counsel, and accountants and each underwriter, if any, of the
Company's securities covered by such a registration statement, each person who
controls the Company or such underwriter within the meaning of Section 15 of the
Securities Act, against all claims, losses, damages and liabilities (or actions
in respect thereof) arising out of or based on any untrue statement (or alleged
untrue statement) of a material fact contained in any such registration
statement, prospectus, offering circular, or other document, or any omission (or
alleged omission) to state therein a material fact required to be stated therein
or necessary to make the statements therein not misleading, and will reimburse
the Company, each of its directors, officers, partners, legal counsel, and
accountants, persons, underwriters, or control persons for any legal or any
other expenses reasonably incurred in connection with investigating or defending
any such claim, loss, damage, liability, or action, in each case to the extent,

                                       11

<PAGE>

but only to the extent, that such untrue statement (or alleged untrue statement)
or omission (or alleged omission) is made in such registration statement,
prospectus, offering circular, or other document in reliance upon and in
conformity with written information furnished to the Company by the Holder and
stated to be specifically for use therein provided, however, that the
obligations of the Holder hereunder shall not apply to amounts paid in
settlement of any such claims, losses, damages, or liabilities (or actions in
respect thereof) if such settlement is effected without the consent of the
Holder (which consent shall not be unreasonably withheld), and provided that in
no event shall any indemnity under this Section exceed the net proceeds from the
offering received by the Holder.

         14. LEGEND. Unless the Warrant Shares have been registered under the
Securities Act, upon exercise of the Warrant and the issuance of any of the
Warrant Shares, all certificates representing such securities shall bear on the
face thereof substantially the following legend:

                  "The securities represented by this certificate have not been
                  registered under the Securities Act of 1933, as amended (the
                  "Act"), may not be sold, offered for sale, assigned,
                  transferred or otherwise disposed of, unless registered
                  pursuant to the provisions of the Act or unless an opinion of
                  counsel reasonably acceptable to the Company is obtained
                  stating that such disposition is in compliance with an
                  available exemption from such registration."

         15. WARRANT AGENT. The Company shall initially serve as Warrant Agent
under this Warrant. Upon 10 days' prior written notice to the Holder, the
Company may appoint a new Warrant Agent. Any corporation into which the Company
or any new Warrant Agent may be merged or any corporation resulting from any
consolidation to which the Company or any new Warrant Agent shall be a party or
any corporation to which the Company or any new Warrant Agent transfers
substantially all of its corporate trust or shareholders services business shall
be a successor Warrant Agent under this Warrant without any further act. Any
such successor Warrant Agent shall promptly cause notice of its succession as
Warrant Agent to be mailed (by first class mail, postage prepaid) to the Holder
at the Holder's last address as shown on the Company's books.

         16. NOTICES. All notices required hereunder shall be in writing and
shall be deemed given when sent by facsimile, delivered personally or within two
days after mailing when mailed by certified or registered mail, return receipt
requested, to the Company at its principal office, or to the Holder at the
address set forth on the record books of the Company, or at such other address
of which the Company or the Holder has been advised by notice hereunder.

         17. GENERAL PROVISIONS.

                  (a) SUCCESSORS AND ASSIGNORS. All the covenants and provisions
of this Warrant shall bind and inure to the benefit of the respective executors,
administrators, successors and assigns of the Holder and the Company.

                  (b) AMENDMENT. This Warrant may only be modified or amended by
a writing signed by the Company and the Holder.

                  (c) APPLICABLE LAW. THE WARRANT IS ISSUED UNDER AND SHALL FOR
ALL PURPOSES BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE
STATE OF NEW YORK, INCLUDING ALL MATTERS OF CONSTRUCTION, VALIDITY, PERFORMANCE,
AND ENFORCEMENT WITHOUT GIVING EFFECT TO THE CHOICE OF LAW RULES THEREOF.

                                       12

<PAGE>

                  (d) ENTIRE AGREEMENT. Except as provided herein, this Warrant,
including exhibits, contains the entire agreement of the parties, and supersedes
all existing negotiations, representations or agreements and other oral,
written, or other communications between them concerning the subject matter of
this Warrant.

                  (e) SEVERABILITY. If any provision of this Warrant is
unenforceable, invalid, or violates applicable law, such provision shall be
deemed stricken and shall not affect the enforceability of any other provisions
of this Warrant.

                  (f) CAPTIONS. The captions in this Warrant are inserted only
as a matter of convenience and for reference and shall not be deemed to define,
limit, enlarge, or describe the scope of this Warrant or the relationship of the
parties, and shall not affect this Warrant or the construction of any provisions
herein.

                  (g) LOST WARRANT. The Company covenants to the Holder that
upon receipt by the Company of documentation reasonably satisfactory to it of
the loss, theft, destruction or mutilation of this Warrant, and (in the case of
loss, theft or destruction) of reasonably satisfactory indemnification, and upon
surrender and cancellation of this Warrant, if mutilated, the Company shall
execute and deliver a new warrant certificate of like tenor and date in lieu of
this Warrant. Any such new warrant certificate executed and delivered shall
constitute an additional contractual obligation on the part of the Company,
whether or not this Warrant so lost, stolen, destroyed or mutilated shall be at
any time enforceable by anyone.

                  (h) FURTHER ASSURANCES. The Company shall not, by amendment of
its articles of incorporation (or other organizational documents) or through any
reorganization, transfer of assets, consolidation, merger, dissolution, issue or
sale of securities or any other voluntary action, avoid or seek to avoid the
observance or performance of any of the terms to be observed or performed
hereunder by the Company, but shall at all times in good faith assist in the
carrying out of all the provisions of this Warrant and in the taking of all such
action as may be necessary or appropriate in order to protect the exercise
rights of the Holder against impairment. Each of the parties shall execute such
documents and perform such further acts (including, without limitation,
obtaining any consents, exemptions, authorizations or other actions by, or
giving any notices to, or making any filings with, any governmental authority or
any other person, and otherwise fulfilling, or causing the fulfillment of, the
various obligations made herein, as may be reasonably required or desirable to
carry out or to perform the provisions of this Warrant and to consummate and
make effective as promptly as possible the transactions contemplated by this
Warrant.

                                       13

<PAGE>

         IN WITNESS WHEREOF, the Company has caused this Warrant to be signed on
its behalf, in its corporate name, by its duly authorized officer, all as of the
day and year first above written.

                                   BLUEFIRE ETHANOL FUELSINC., a corporation
                                   organized under the laws of the State of the
                                   Nevada

                                   By: ________________________________________
                                          Name:
                                          Title

                                       14

<PAGE>

                                    EXHIBIT A
                                    ---------

                              WARRANT EXERCISE FORM

(To be executed by the Holder to exercise the right to purchase shares of Common
Stock under the foregoing Warrant)

To BlueFire Ethanol Fuels, Inc.:

         In accordance with the Warrant enclosed with this Warrant Exercise
Form, the undersigned hereby irrevocably elects to purchase________ shares of
Common Stock, $0.001 par value per share ("Common Stock"), of BlueFire Ethanol
Fuels Inc. and, encloses herewith $__________ in cash, certified or official
bank check or checks or wire transfer, which sum represents the aggregate
Exercise Price (as defined in the Warrant) for the number of shares of Common
Stock to which this Warrant Exercise Form relates, together with any applicable
taxes payable by the undersigned pursuant to the Warrant.

         The undersigned requests that certificates for the shares of Common
Stock issuable upon this exercise be issued in the name of:

                                          PLEASE INSERT SOCIAL SECURITY OR
                                          TAX IDENTIFICATION NUMBER

                                          ______________________________________

________________________________________________________________________________
                         (Please print name and address)

         If the number of shares of Common Stock issuable upon this exercise
shall not be all of the shares of Common Stock that the undersigned is entitled
to purchase in accordance with the enclosed Warrant, the undersigned requests
that a new warrant evidencing the right to purchase the shares of Common Stock
not issuable pursuant to the exercise evidenced hereby be issued in the name of
and delivered to:

________________________________________________________________________________
                         (Please print name and address)

________________________________________________________________________________

________________________________________________________________________________

Dated: _______________________        __________________________________________
                                      (Print name of holder)

                                      By:_______________________________________
                                      Name:_____________________________________
                                      Title:____________________________________
                                      (Signature must conform in all respects to
                                      name of Holder as specified on the face of
                                      the Warrant)

                                       15

<PAGE>

                                    EXHIBIT B
                                    ---------

                             CASHLESS EXERCISE FORM

         The undersigned hereby elects, pursuant to the exercise provisions of
Section 4(b) of the Warrant, to exchange the Warrant for such number of Warrant
Shares as set forth on the calculation attached hereto.

         Please issue a certificate or certificates for such Warrant Shares in
the name of:

         Name:             ________________________________________________
                           (Please Print Name, Address and SSN or EIN of
                           Shareholder above)

         Address:          ________________________________________________

                           ________________________________________________

                           ________________________________________________

         SSN or EIN:       ___________________________

         Signature:        ______________________________________

                                       16Exhibit
4.3

 

 

 

 

 

 

 

 

 

 

 

 

CRYSTAL
RIVER CAPITAL, INC.,

 

Issuer

 

AND

 

[           ]

 

Trustee

 

 

INDENTURE

 

Dated
as of [   ], 2007

 

 

Senior
Debt Securities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

CROSS-REFERENCE
TABLE*

 

	
  Section of

  	
   

  
	
  Trust Indenture Act

  	
  Section
  of

  
	
  of 1939, as amended

  	
  Indenture

  
	
   

  	
   

  
	
  310(a)

  	
  7.09

  
	
  310(b)

  	
  7.08

  
	
   

  	
  7.10

  
	
  310(c)

  	
  Inapplicable

  
	
  311(a)

  	
  7.13(a)

  
	
  311(b)

  	
  7.13(b)

  
	
  311(c)

  	
  Inapplicable

  
	
  312(a)

  	
  5.01

  
	
   

  	
  5.02(a)

  
	
  312(b)

  	
  5.02(b)

  
	
  312(c)

  	
  5.02(c)

  
	
  313(a)

  	
  5.04(a)

  
	
  313(b)

  	
  5.04(b)

  
	
  313(c)

  	
  5.04(a)

  
	
   

  	
  5.04(b)

  
	
  313(d)

  	
  5.04(c)

  
	
  314(a)

  	
  5.03

  
	
  314(b)

  	
  Inapplicable

  
	
  314(c)

  	
  13.06

  
	
  314(d)

  	
  Inapplicable

  
	
  314(e)

  	
  13.06

  
	
  314(f)

  	
  Inapplicable

  
	
  315(a)

  	
  7.01(a)

  
	
   

  	
  7.02

  
	
  315(b)

  	
  6.07

  
	
  315(c)

  	
  7.01

  
	
  315(d)

  	
  7.01(b)

  
	
   

  	
  7.01(c)

  
	
  315(e)

  	
  6.07

  
	
  316(a)

  	
  6.06

  
	
   

  	
  8.04

  
	
  316(b)

  	
  6.04

  
	
  316(c)

  	
  8.01

  
	
  317(a)

  	
  6.02

  
	
  317(b)

  	
  4.03

  
	
  318(a)

  	
  13.08

  

 

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

 

 

 

TABLE OF
CONTENTS*

 

 

	
   

  	
   

  	
   

  	
   

  	
  Page

  
	
  PARTIES

  	
   

  	
   

  	
   

  	
  1

  
	
  RECITALS

  	
   

  	
   

  	
   

  	
  1

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  ARTICLE I.

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  DEFINITIONS

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  SECTION 1.01

  	
   

  	
  Definitions of Terms

  	
   

  	
  1

  
	
   

  	
   

  	
  Affiliate

  	
   

  	
  1

  
	
   

  	
   

  	
  Authenticating Agent

  	
   

  	
  1

  
	
   

  	
   

  	
  Bankruptcy Law

  	
   

  	
  1

  
	
   

  	
   

  	
  Board of Directors

  	
   

  	
  1

  
	
   

  	
   

  	
  Board Resolution

  	
   

  	
  1

  
	
   

  	
   

  	
  Business Day

  	
   

  	
  1

  
	
   

  	
   

  	
  Certificate

  	
   

  	
  1

  
	
   

  	
   

  	
  Company

  	
   

  	
  2

  
	
   

  	
   

  	
  Corporate Trust Office

  	
   

  	
  2

  
	
   

  	
   

  	
  Custodian

  	
   

  	
  2

  
	
   

  	
   

  	
  Default

  	
   

  	
  2

  
	
   

  	
   

  	
  Depositary

  	
   

  	
  2

  
	
   

  	
   

  	
  Event of Default

  	
   

  	
  2

  
	
   

  	
   

  	
  Global Security

  	
   

  	
  2

  
	
   

  	
   

  	
  Governmental Obligations

  	
   

  	
  2

  
	
   

  	
   

  	
  “herein”, “hereof” and
  “hereunder”

  	
   

  	
  2

  
	
   

  	
   

  	
  Indenture

  	
   

  	
  2

  
	
   

  	
   

  	
  Interest Payment Date

  	
   

  	
  2

  
	
   

  	
   

  	
  Officers’ Certificate

  	
   

  	
  2

  
	
   

  	
   

  	
  Opinion of Counsel

  	
   

  	
  2

  
	
   

  	
   

  	
  Outstanding

  	
   

  	
  2

  
	
   

  	
   

  	
  Person

  	
   

  	
  3

  
	
   

  	
   

  	
  Predecessor Security

  	
   

  	
  3

  
	
   

  	
   

  	
  Responsible Officer

  	
   

  	
  3

  
	
   

  	
   

  	
  Securities

  	
   

  	
  3

  
	
   

  	
   

  	
  Securityholder

  	
   

  	
  3

  
	
   

  	
   

  	
  Subsidiary

  	
   

  	
  3

  
	
   

  	
   

  	
  Trust Indenture Act

  	
   

  	
  3

  
	
   

  	
   

  	
  Trustee

  	
   

  	
  3

  
	
   

  	
   

  	
  Voting Stock

  	
   

  	
  3

  

 

 

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

 

 

i

 

 

TABLE OF
CONTENTS

(continued)

 

	
   

  	
   

  	
   

  	
   

  	
  Page

  
	
  ARTICLE
  II.

  
	
   

  	
   

  	
   

  	
   

  	
   

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

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  SECTION 2.01

  	
   

  	
  Designation and Terms of
  Securities

  	
   

  	
  3

  
	
  SECTION 2.02

  	
   

  	
  Form of Securities and
  Trustee’s Certificate

  	
   

  	
  5

  
	
  SECTION 2.03

  	
   

  	
  Denominations; Provisions
  for Payment

  	
   

  	
  5

  
	
  SECTION 2.04

  	
   

  	
  Execution and
  Authentications

  	
   

  	
  6

  
	
  SECTION 2.05

  	
   

  	
  Registration of Transfer
  and Exchange

  	
   

  	
  7

  
	
  SECTION 2.06

  	
   

  	
  Temporary Securities

  	
   

  	
  7

  
	
  SECTION 2.07

  	
   

  	
  Mutilated, Destroyed, Lost
  or Stolen Securities

  	
   

  	
  8

  
	
  SECTION 2.08

  	
   

  	
  Cancellation

  	
   

  	
  8

  
	
  SECTION 2.09

  	
   

  	
  Benefits of Indenture

  	
   

  	
  8

  
	
  SECTION 2.10

  	
   

  	
  Authenticating Agent

  	
   

  	
  8

  
	
  SECTION 2.11

  	
   

  	
  Global Securities

  	
   

  	
  9

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE
  III.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  REDEMPTION
  OF SECURITIES AND SINKING FUND PROVISIONS

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  SECTION 3.01

  	
   

  	
  Redemption

  	
   

  	
  9

  
	
  SECTION 3.02

  	
   

  	
  Notice of Redemption

  	
   

  	
  10

  
	
  SECTION 3.03

  	
   

  	
  Payment Upon Redemption

  	
   

  	
  10

  
	
  SECTION 3.04

  	
   

  	
  Sinking Fund

  	
   

  	
  11

  
	
  SECTION 3.05

  	
   

  	
  Satisfaction of Sinking
  Fund Payments with Securities

  	
   

  	
  11

  
	
  SECTION 3.06

  	
   

  	
  Redemption of Securities
  for Sinking Fund

  	
   

  	
  11

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE
  IV.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  CERTAIN
  COVENANTS

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  SECTION 4.01

  	
   

  	
  Payment of Principal,
  Premium and Interest

  	
   

  	
  11

  
	
  SECTION 4.02

  	
   

  	
  Maintenance of Office or
  Agency

  	
   

  	
  11

  
	
  SECTION 4.03

  	
   

  	
  Paying Agents

  	
   

  	
  12

  
	
  SECTION 4.04

  	
   

  	
  Appointment to Fill Vacancy
  in Office of Trustee

  	
   

  	
  12

  
	
  SECTION 4.05

  	
   

  	
  Compliance with
  Consolidation Provisions

  	
   

  	
  12

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE
  V.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  SECURITYHOLDERS’
  LISTS AND REPORTS BY THE COMPANY AND THE TRUSTEE

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  SECTION 5.01

  	
   

  	
  Company to Furnish Trustee
  Names and Addresses of Securityholders

  	
   

  	
  12

  
	
  SECTION 5.02

  	
   

  	
  Preservation of
  Information; Communications with Securityholders

  	
   

  	
  13

  

 

 

ii

 

TABLE OF CONTENTS

(continued)

 

	
   

  	
   

  	
   

  	
   

  	
  Page

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  SECTION 5.03

  	
   

  	
  Reports by the Company

  	
   

  	
  13

  
	
  SECTION 5.04

  	
   

  	
  Reports by the Trustee

  	
   

  	
  13

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE
  VI.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  REMEDIES
  OF THE TRUSTEE AND SECURITYHOLDERS ON EVENT OF DEFAULT

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  SECTION 6.01

  	
   

  	
  Events of Default

  	
   

  	
  14

  
	
  SECTION 6.02

  	
   

  	
  Collection of Indebtedness
  and Suits for Enforcement by Trustee

  	
   

  	
  15

  
	
  SECTION 6.03

  	
   

  	
  Application of Moneys
  Collected

  	
   

  	
  16

  
	
  SECTION 6.04

  	
   

  	
  Limitation on Suits

  	
   

  	
  16

  
	
  SECTION 6.05

  	
   

  	
  Rights and Remedies
  Cumulative; Delay or Omission Not Waiver

  	
   

  	
  16

  
	
  SECTION 6.06

  	
   

  	
  Control by Securityholders

  	
   

  	
  17

  
	
  SECTION 6.07

  	
   

  	
  Undertaking to Pay Costs

  	
   

  	
  17

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE
  VII.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  CONCERNING
  THE TRUSTEE

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  SECTION 7.01

  	
   

  	
  Certain Duties and Responsibilities
  of Trustee

  	
   

  	
  17

  
	
  SECTION 7.02

  	
   

  	
  Certain Rights of Trustee

  	
   

  	
  18

  
	
  SECTION 7.03

  	
   

  	
  Trustee Not Responsible for
  Recitals or Issuance or Securities

  	
   

  	
  19

  
	
  SECTION 7.04

  	
   

  	
  May Hold Securities

  	
   

  	
  19

  
	
  SECTION 7.05

  	
   

  	
  Moneys Held in Trust. 

  	
   

  	
  19

  
	
  SECTION 7.06

  	
   

  	
  Compensation and
  Reimbursement

  	
   

  	
  19

  
	
  SECTION 7.07

  	
   

  	
  Reliance on Officers’
  Certificate

  	
   

  	
  20

  
	
  SECTION 7.08

  	
   

  	
  Disqualification;
  Conflicting Interests

  	
   

  	
  20

  
	
  SECTION 7.09

  	
   

  	
  Corporate Trustee Required;
  Eligibility

  	
   

  	
  20

  
	
  SECTION 7.10

  	
   

  	
  Resignation and Removal;
  Appointment of Successor

  	
   

  	
  20

  
	
  SECTION 7.11

  	
   

  	
  Acceptance of Appointment
  By Successor

  	
   

  	
  21

  
	
  SECTION 7.12

  	
   

  	
  Merger, Conversion,
  Consolidation or Succession to Business

  	
   

  	
  22

  
	
  SECTION 7.13

  	
   

  	
  Preferential Collection of
  Claims Against the Company

  	
   

  	
  22

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE
  VIII.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  CONCERNING
  THE SECURITYHOLDERS

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  SECTION 8.01

  	
   

  	
  Evidence of Action by
  Securityholders

  	
   

  	
  22

  
	
  SECTION 8.02

  	
   

  	
  Proof of Execution by
  Securityholders

  	
   

  	
  22

  
	
  SECTION 8.03

  	
   

  	
  Who May be Deemed Owners

  	
   

  	
  23

  
	
  SECTION 8.04

  	
   

  	
  Certain Securities Owned by
  Company Disregarded

  	
   

  	
  23

  
	
  SECTION 8.05

  	
   

  	
  Actions Binding on Future
  Securityholders

  	
   

  	
  23

  

 

 

iii

 

TABLE OF CONTENTS

(continued)

 

	
   

  	
   

  	
   

  	
   

  	
  Page

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  ARTICLE IX.

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  SUPPLEMENTAL
  INDENTURES

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  SECTION 9.01

  	
   

  	
  Supplemental Indentures
  Without the Consent of Securityholders

  	
   

  	
  23

  
	
  SECTION 9.02

  	
   

  	
  Supplemental Indentures
  With Consent of Securityholders

  	
   

  	
  24

  
	
  SECTION 9.03

  	
   

  	
  Effect of Supplemental
  Indentures

  	
   

  	
  24

  
	
  SECTION 9.04

  	
   

  	
  Securities Affected by
  Supplemental Indentures

  	
   

  	
  25

  
	
  SECTION 9.05

  	
   

  	
  Execution of Supplemental
  Indentures

  	
   

  	
  25

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE
  X.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  SUCCESSOR
  CORPORATION

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  SECTION 10.01

  	
   

  	
  Company May Consolidate,
  Etc

  	
   

  	
  25

  
	
  SECTION 10.02

  	
   

  	
  Successor Corporation
  Substituted

  	
   

  	
  25

  
	
  SECTION 10.03

  	
   

  	
  Evidence of Consolidation,
  Etc. to Trustee

  	
   

  	
  26

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE
  XI.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  SATISFACTION
  AND DISCHARGE

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  SECTION 11.01

  	
   

  	
  Satisfaction and Discharge
  of Indenture

  	
   

  	
  26

  
	
  SECTION 11.02

  	
   

  	
  Discharge of Obligations

  	
   

  	
  26

  
	
  SECTION 11.03

  	
   

  	
  Deposited Moneys to be Held
  in Trust

  	
   

  	
  26

  
	
  SECTION 11.04

  	
   

  	
  Payment of Moneys Held by
  Paying Agents

  	
   

  	
  27

  
	
  SECTION 11.05

  	
   

  	
  Repayment to Company

  	
   

  	
  27

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE
  XII.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  IMMUNITY
  OF INCORPORATORS, STOCKHOLDERS, OFFICERS AND DIRECTORS

  
	
   

  
	
  SECTION
  12.01

  	
   

  	
  No
  Recourse

  	
   

  	
  27

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE XIII.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  MISCELLANEOUS
  PROVISIONS

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  SECTION 13.01

  	
   

  	
  Effect on Successors and
  Assigns

  	
   

  	
  27

  
	
  SECTION 13.02

  	
   

  	
  Actions by Successor

  	
   

  	
  27

  
	
  SECTION 13.03

  	
   

  	
  Surrender of Company Powers

  	
   

  	
  27

  
	
  SECTION 13.04

  	
   

  	
  Notices

  	
   

  	
  28

  
	
  SECTION 13.05

  	
   

  	
  Governing Law

  	
   

  	
  28

  
	
  SECTION 13.06

  	
   

  	
  Treatment of Securities as
  Debt

  	
   

  	
  28

  
	
  SECTION 13.07

  	
   

  	
  Compliance Certificates and
  Opinions

  	
   

  	
  28

  
	
  SECTION 13.08

  	
   

  	
  Payments on Business Days

  	
   

  	
  28

  
	
  SECTION 13.09

  	
   

  	
  Conflict with Trust
  Indenture Act

  	
   

  	
  28

  
	
  SECTION 13.10

  	
   

  	
  Counterparts

  	
   

  	
  28

  
	
  SECTION 13.11

  	
   

  	
  Separability

  	
   

  	
  28

  
	
  SECTION 13.12

  	
   

  	
  Assignment

  	
   

  	
  29

  

 

 

iv

 

 

                INDENTURE, dated as of [ ], 2007, among Crystal River
Capital, Inc., a Maryland corporation (the “Company”), and [ ], as trustee (the
“Trustee”):

 

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

 

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

 

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

 

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

 

ARTICLE
I

 

DEFINITIONS

 

                SECTION 1.01 Definitions of Terms.

 

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

 

                “Affiliate” means, with respect to a specified
Person, (a) any Person directly or indirectly owning, controlling or holding
with power to vote 10% or more of the outstanding voting securities or other
ownership interests of the specified Person, (b) any Person 10% or more of whose
outstanding voting securities or other ownership interests are directly or
indirectly owned, controlled or held with power to vote by the specified
Person, (c) any Person directly or indirectly controlling, controlled by, or
under common control with the specified Person, (d) a partnership in which the
specified Person is a general partner, (e) any officer or director of the
specified Person, and (f) if the specified Person is an individual, any entity
of which the specified Person is an officer, director or general partner.

 

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

 

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

 

                “Board of Directors” means the Board of Directors of
the Company or any duly authorized committee of such Board.

 

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

 

                “Business Day” means, with respect to any series of
Securities, any day other than a day on which Federal or State banking
institutions in the Borough of Manhattan, The City of New York, are authorized
or obligated by law, executive order or regulation to close.

 

                “Certificate” means a certificate signed by the
principal executive officer, the principal financial officer, the Treasurer or
the principal accounting officer of the Company. The Certificate need not
comply with the provisions of Section 13.07.

 

1

 

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

 

                “Corporate Trust Office” means the office of the
Trustee at which, at any particular time, its corporate trust business shall be
principally administered, which office at the date hereof is located at [   ],
except that whenever a provision herein refers to an office or agency of the
Trustee in the Borough of Manhattan, The City of New York, such office is
located, at the date hereof, at [   ].

 

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

 

                “Default” means any event, act or condition that with
notice or lapse of time, or both, would constitute an Event of Default.

 

                “Depositary” means, with respect to Securities of any
series, for which the Company shall determine that such Securities will be
issued as a Global Security, The Depository Trust Company, New York, New York,
another clearing agency, or any successor registered as a clearing agency under
the Securities and Exchange Act of 1934, as amended (the “Exchange Act”), or
other applicable statute or regulation, which, in each case, shall be
designated by the Company pursuant to either Section 2.01 or 2.11.

 

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

 

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

 

                “Governmental Obligations” means securities that are
(i) direct obligations of the United States of America 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 of America, the payment of which is unconditionally guaranteed as a full
faith and credit obligation by the United States of America that, in either
case, are not callable or redeemable at the option of the issuer thereof, and
shall also include a depositary receipt issued by a bank (as defined in Section
3(a)(2) of the Securities Act of 1933, as amended) as custodian with respect to
any such Governmental Obligation or a specific payment of principal of or
interest on any such Governmental Obligation held by such custodian for the
account of the holder of such depositary receipt; provided, however, that
(except as required by law) such custodian is not authorized to make any
deduction from the amount payable to the holder of such depositary receipt from
any amount received by the custodian in respect of the Governmental Obligation
or the specific payment of principal of or interest on the Governmental
Obligation evidenced by such depositary receipt.

 

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

 

                “Indenture” means this instrument as originally
executed or as it may from time to time be supplemented or amended by one or
more indentures supplemental hereto entered into in accordance with the terms
hereof.

 

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

 

                “Officers’ Certificate” means a certificate signed by
two of the following officers: the President, any Senior Vice President, any
Executive Vice President, any Vice President, the Treasurer, any Assistant
Treasurer, the Secretary or any Assistant Secretary of the Company that is
delivered to the Trustee in accordance with the terms hereof. Each such
certificate shall include the statements provided for in Section 13.07, if and
to the extent required by the provisions thereof.

 

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

 

                “Outstanding”, when used with reference to Securities
of any series, means, subject 

 

2

 

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

 

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

 

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

 

                “Responsible Officer” when used with respect to the
Trustee means the Chairman of the Board of Directors, the Chairman, any Vice
President, the Secretary, the Treasurer, any trust officer, any corporate trust
officer or any other officer or assistant 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 his or her knowledge of and familiarity with the particular
subject.

 

                “Securities” means the debt Securities authenticated
and delivered under this Indenture.

 

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

 

                “Subsidiary” means, with respect to any Person, (i)
any corporation at least a majority of whose outstanding Voting Stock shall at
the time be owned, directly or indirectly, by such Person or by one or more of
its Subsidiaries or by such Person and one or more of its Subsidiaries, (ii)
any general partnership, joint venture or similar entity, at least a majority
of whose outstanding partnership or similar interests shall at the time be owned
by such Person, or by one or more of its Subsidiaries, or by such Person and
one or more of its Subsidiaries and (iii) any limited partnership of which such
Person or any of its Subsidiaries is a general partner.

 

                “Trust Indenture Act” means the Trust Indenture Act
of 1939, as amended, subject to the provisions of Sections 9.01, 9.02, and
10.01, as in effect at the date of execution of this instrument.

 

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

 

                “Voting Stock”, as applied to stock of any Person,
means shares, interests, participations or other equivalents in the equity
interest (however designated) in such Person having ordinary voting power for
the election of a majority of the directors (or the equivalent) of such Person,
other than shares, interests, participations or other equivalents having such
power only by reason of the occurrence of a contingency.

 

ARTICLE
II

 

ISSUE,
DESCRIPTION, TERMS, EXECUTION,

REGISTRATION
AND EXCHANGE OF SECURITIES

 

                SECTION 2.01 Designation and Terms of Securities.

 

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

 

3

 

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

 

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

 

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

 

(4)
 the rate or rates at which the
Securities of the series shall bear interest or the manner of calculation of
such rate or rates, if any;

 

(5)
 the date or dates from which such
interest shall accrue, the Interest Payment Dates on which such interest will
be payable or the manner of determination of such Interest Payment Dates and
the record date for the determination of holders to whom interest is payable on
any such Interest Payment Dates; 

 

(6)
 the right, if any, to extend the
interest payment periods and the duration of such extension;

 

(7)
 the period or periods within which, the
price or prices at which and the terms and conditions upon which, Securities of
the series may be redeemed, in whole or in part, at the option of the Company;

 

(8)
 the obligation, if any, of the Company
to redeem or purchase Securities of the series pursuant to any sinking fund or analogous
provisions (including payments made in cash in participation of future sinking
fund obligations) or at the option of a holder thereof and the period or
periods within which, the price or prices at which, and the terms and
conditions upon which, Securities of the series shall be redeemed or purchased,
in whole or in part, pursuant to such obligation;

 

(9)
 the form of the Securities of the series
including the form of the Certificate of Authentication for such series;

 

(10)
 if other than denominations of one
thousand U.S. dollars ($1,000) or any integral multiple thereof, the
denominations in which the Securities of the series shall be issuable;

 

(11)
 any and all other terms with respect to
such series (which terms shall not be inconsistent with the terms of this
Indenture) including any terms which may be required by or advisable under
United States laws or regulations or advisable in connection with the marketing
of Securities of that series;

 

(12)
 whether the Securities are issuable as a
Global Security and, in such case, the identity for the Depositary for such series;

 

(13)
 whether the Securities will be
convertible into shares of common stock or other securities of the Company and,
if so, the terms and conditions upon which such Securities will be so
convertible, including the conversion price and the conversion period;

 

(14)
 if the amount of payments of principal
of and any premium or interest on the Securities of the series may be
determined with reference to an index, the manner in which such amounts shall
be determined;

 

(15)
 if other than the principal amount
thereof, the 

 

4

 

portion of the principal
amount of Securities of the series which shall be payable upon declaration of
acceleration of the maturity thereof pursuant to Section 6.01;

 

(16)
 any additional or different Events of
Default or restrictive covenants provided for with respect to the Securities of
the series;

 

(17)
 any provisions granting special rights
to holders when a specified event occurs; and

 

(18)
 any special tax implications of the
notes, including provisions for original issue discount securities, if offered.

 

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

 

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

 

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

 

                SECTION 2.02 Form of Securities and Trustee’s
Certificate.

 

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

 

                SECTION 2.03 Denominations; Provisions for Payment.

 

                The Securities shall be issuable as registered
Securities and in the denominations of one thousand U.S. dollars ($1,000) or
any integral multiple thereof, subject to Section 2.01(11). The Securities of a
particular series shall bear interest payable on the dates and at the rate
specified with respect to that series. The principal of and the interest on the
Securities of any series, as well as any premium thereon in case of redemption
thereof prior to maturity, shall be payable in the coin or currency of the
United States of America that at the time is legal tender for public and
private debt, at the office or agency of the Company maintained for that
purpose in the Borough of Manhattan, the City and State of New York. Each
Security shall be dated the date of its authentication. Interest on the Securities
shall be computed on the basis of a 360-day year composed of twelve 30-day
months.

 

                The interest installment on any Security that is
payable, and is punctually paid or duly provided for, on any Interest Payment
Date for Securities of that series shall be paid to the Person in whose name
said Security (or one or more Predecessor Securities) is registered at the
close of business on the regular record date for such interest installment. In
the event that any Security of a particular series or portion thereof is called
for redemption and the redemption date is subsequent to a regular record date
with respect to any Interest Payment Date and prior to such Interest Payment
Date, interest on such Security will be paid upon presentation and surrender of
such Security as provided in Section 3.03.

 

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

 

(1)
 The Company may make payment of any
Defaulted Interest on Securities to the Persons in whose names such Securities
(or their 

 

5

 

respective Predecessor
Securities) are registered at the close of business on a special record date
for the payment of such Defaulted Interest, which shall be fixed in the
following manner: the Company shall notify the Trustee in writing of the amount
of Defaulted Interest proposed to be paid on each such Security and the date of
the proposed payment, and at the same time the Company shall deposit with the
Trustee an amount of money equal to the aggregate amount proposed to be paid in
respect of such Defaulted Interest or shall make arrangements satisfactory to
the Trustee for such deposit prior to the date of the proposed payment, such
money when deposited to be held in trust for the benefit of the Persons
entitled to such Defaulted Interest as in this clause provided. Thereupon the
Trustee shall fix a special record date for the payment of such Defaulted
Interest which shall not be more than 15 nor less than 10 days prior to the
date of the proposed payment and not less than 10 days after the receipt by the
Trustee of the notice of the proposed payment. The Trustee shall promptly
notify the Company of such special record date and, in the name and at the
expense of the Company, shall cause notice of the proposed payment of such
Defaulted Interest and the special record date therefor to be mailed, first
class postage prepaid, to each Securityholder at his or her address as it appears
in the Security Register (as hereinafter defined), not less than 10 days prior
to such special record date. Notice of the proposed payment of such Defaulted
Interest and the special record date therefor having been mailed as aforesaid,
such Defaulted Interest shall be paid to the Persons in whose names such
Securities (or their respective Predecessor Securities) are registered on such
special record date and shall be no longer payable pursuant to the following
clause (2).

 

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

 

                Unless otherwise set forth in a Board Resolution of
the Company or one or more indentures supplemental hereto establishing the
terms of any series of Securities pursuant to Section 2.01 hereof, the term “regular
record date” as used in this Section with respect to a series of Securities
with respect to any Interest Payment Date for such series shall mean either the
fifteenth day of the month immediately preceding the month in which an Interest
Payment Date established for such series pursuant to Section 2.01 hereof shall
occur, if such Interest Payment Date is the first day of a month, or the last
day of the month immediately preceding the month in which an Interest Payment
Date established for such series pursuant to Section 2.01 hereof shall occur,
if such Interest Payment Date is the fifteenth day of a month, whether or not
such date is a Business Day.

 

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

 

                SECTION 2.04 Execution and Authentications.

 

                The Securities shall be signed on behalf of the
Company by two of its officers, under its corporate seal attested by its Secretary
or one of its Assistant Secretaries. Signatures may be in the form of a manual
or facsimile signature. The Company may use the facsimile signature of any
Person who shall have been an officer thereof, notwithstanding the fact that at
the time the Securities shall be authenticated and delivered or disposed of
such Person shall have ceased to be such officer of the Company. The seal of
the Company may be in the form of a facsimile of such seal and may be
impressed, affixed, imprinted or otherwise reproduced on the Securities. The
Securities may contain such notations, legends or endorsements required by law,
stock exchange rule or usage. Each Security shall be dated the date of its
authentication by the Trustee.

 

                A Security shall not be valid until authenticated
manually by an authorized signatory of the Trustee, or by an Authenticating
Agent. Such signature shall be conclusive evidence that the Security so
authenticated has been duly authenticated and delivered hereunder and that the
holder is entitled to the benefits of this Indenture.

 

                At any time and from time to time after the execution
and delivery of this Indenture, the Company may deliver Securities of any
series executed by the Company to the Trustee for 

 

6

 

authentication, together with
a written order of the Company for the authentication and delivery of such
Securities, signed by two of its officers in accordance with such written order
shall authenticate and deliver such Securities.

 

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

 

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

 

                SECTION 2.05 Registration of Transfer and Exchange.

 

(a)  Securities of any series may be exchanged upon
presentation thereof at the office or agency of the Company designated for such
purpose in the Borough of Manhattan, the City and State of New York, for other
Securities of such series of authorized denominations, and for a like aggregate
principal amount, upon payment of a sum sufficient to cover any tax or other
governmental charge in relation thereto, all as provided in this Section. In
respect of any Securities so surrendered for exchange, the Company shall
execute, the Trustee shall authenticate and such office or agency shall deliver
in exchange therefor the Security or Securities of the same series that the
Securityholder making the exchange shall be entitled to receive, bearing
numbers not contemporaneously outstanding.

 

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

 

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

 

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

 

(c)  No service charge shall be made for any
exchange or registration of transfer of Securities, or issue of new Securities
in case of partial redemption of any series, but the Company may require
payment of a sum sufficient to cover any tax or other governmental charge in
relation thereto, other than exchanges pursuant to Section 2.06, the second
paragraph of Section 3.03 and Section 9.04 not involving any transfer.

 

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

 

                SECTION 2.06 Temporary Securities.

 

                Pending the preparation of definitive Securities of
any series, the Company may execute, and the Trustee shall authenticate and
deliver, temporary Securities (printed, lithographed or typewritten) of any
authorized denomination. Such temporary Securities shall be substantially in
the form of the definitive Securities in lieu of which they are issued, but
with such omissions, insertions and variations as may be appropriate for
temporary Securities, all as may be determined by the Company. Every temporary
Security of any series shall be executed by the Company and be authenticated by
the Trustee upon the same conditions and in substantially the same manner, and
with like effect, as the definitive Securities of such series. Without
unnecessary delay the Company will execute and will furnish definitive Securities
of such series and thereupon any or all temporary Securities of such series may
be surrendered in exchange therefor (without charge to the holders), at the
office or agency 

 

7

 

of the Company designated for
the purpose in the Borough of Manhattan, the City and State of New York, and
the Trustee shall authenticate and such office or agency shall deliver in
exchange for such temporary Securities an equal aggregate principal amount of
definitive Securities of such series, unless the Company advises the Trustee to
the effect that definitive Securities need not be executed and furnished until
further notice from the Company. Until so exchanged, the temporary Securities
of such series shall be entitled to the same benefits under this Indenture as
definitive Securities of such series authenticated and delivered hereunder.

 

                SECTION 2.07 Mutilated, Destroyed, Lost or Stolen
Securities.

 

                In case any temporary or definitive Security shall
become mutilated or be destroyed, lost or stolen, the Company (subject to the
next succeeding sentence) shall execute, and upon the Company’s request the
Trustee (subject as aforesaid) shall authenticate and deliver, a new Security
of the same series, bearing a number not contemporaneously outstanding, in
exchange and substitution for the mutilated Security, or in lieu of and in
substitution for the Security so destroyed, lost or stolen. In every case the
applicant for a substituted Security shall furnish to the Company and the
Trustee such security or indemnity as may be required by them to save each of
them harmless, and, in every case of destruction, loss or theft, the applicant
shall also furnish to the Company and the Trustee evidence to their
satisfaction of the destruction, loss or theft of the applicant’s Security and
of the ownership thereof. The Trustee may authenticate any such substituted
Security and deliver the same upon the written request or authorization of any
officer of the Company. Upon the issuance of any substituted Security, the
Company may require the payment of a sum sufficient to cover any tax or other
governmental charge that may be imposed in relation thereto and any other
expenses (including the fees and expenses of the Trustee) connected therewith.
In case any Security that has matured or is about to mature shall become
mutilated or be destroyed, lost or stolen, the Company may, instead of issuing
a substitute Security, pay or authorize the payment of the same (without
surrender thereof except in the case of a mutilated Security) if the applicant
for such payment shall furnish to the Company and the Trustee such security or
indemnity as they may require to save them harmless, and, in case of
destruction, loss or theft, evidence to the satisfaction of the Company and the
Trustee of the destruction, loss or theft of such Security and of the ownership
thereof.

 

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

 

                SECTION 2.08 Cancellation.

 

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

 

                SECTION 2.09 Benefits of Indenture.

 

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

 

                SECTION 2.10 Authenticating Agent.

 

                So long as any of the Securities of any series remain
Outstanding there may be an Authenticating Agent for any or all such series of
Securities which the Trustee shall have the right to appoint. Said
Authenticating Agent shall be authorized to act on behalf of the Trustee to
authenticate Securities of such series issued upon exchange, transfer or
partial redemption thereof, 

 

8

 

and Securities so
authenticated shall be entitled to the benefits of this Indenture and shall be
valid and obligatory for all purposes as if authenticated by the Trustee
hereunder. All references in this Indenture to the authentication of Securities
by the Trustee shall be deemed to include authentication by an Authenticating
Agent for such series. Each Authenticating Agent shall be acceptable to the
Company and shall be a corporation that has a combined capital and surplus, as
most recently reported or determined by it, sufficient under the laws of any
jurisdiction under which it is organized or in which it is doing business to
conduct a trust business, and that is otherwise authorized under such laws to
conduct such business and is subject to supervision or examination by Federal
or State authorities. If at any time any Authenticating Agent shall cease to be
eligible in accordance with these provisions, it shall resign immediately.

 

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

 

                SECTION 2.11 Global Securities.

 

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

 

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

 

                (c)  If at any
time the Depositary for a series of the Securities notifies the Company that it
is unwilling or unable to continue as Depositary for such series or if at any
time the Depositary for such series shall no longer be registered or in good
standing under the Exchange Act, or other applicable statute or regulation, and
a successor Depositary for such series is not appointed by the Company within
90 days after the Company receives such notice or becomes aware of such
condition, as the case may be, this Section 2.11 shall no longer be applicable
to the Securities of such series and the Company will execute, and subject to
Section 2.05, the Trustee will authenticate and deliver the Securities of such
series in definitive registered form without coupons, in authorized
denominations, and in an aggregate principal amount equal to the principal
amount of the Global Security of such series in exchange for such Global
Security. In addition, the Company may at any time determine that the
Securities of any series shall no longer be represented by a Global Security
and that the provisions of this Section 2.11 shall no longer apply to the
Securities of such series. In such event the Company will execute and subject
to Section 2.05, the Trustee, upon receipt of an Officers’ Certificate
evidencing such determination by the Company, will authenticate and deliver the
Securities of such series in definitive registered form without coupons, in
authorized denominations, and in an aggregate principal amount equal to the
principal amount of the Global Security of such series in exchange for such
Global Security. Upon the exchange of the Global Security for such Securities
in definitive registered form without coupons, in authorized denominations, the
Global Security shall be canceled by the Trustee. Such Securities in definitive
registered form issued in exchange for the Global Security pursuant to this
Section 2.11(c) shall be registered in such names and in such authorized
denominations as the Depositary, pursuant to instructions from its direct or
indirect participants or otherwise, shall instruct the Trustee. The Trustee
shall deliver such Securities to the Depositary for delivery to the Persons in
whose names such Securities are so registered.

 

ARTICLE
III.

 

REDEMPTION
OF SECURITIES AND

SINKING
FUND PROVISIONS

 

                SECTION 3.01 Redemption.

 

                The Company may redeem the Securities of any series issued
hereunder on and after the 

 

9

 

dates and in accordance with
the terms established for such series pursuant to Section 2.01 hereof.

 

                SECTION 3.02 Notice of Redemption.

 

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

 

                Each such notice of redemption shall specify the date
fixed for redemption and the redemption price at which Securities of that
series are to be redeemed, and shall state that payment of the redemption price
of such Securities to be redeemed will be made at the office or agency of the
Company in the Borough of Manhattan, the City and State of New York, upon
presentation and surrender of such Securities, that interest accrued to the
date fixed for redemption will be paid as specified in said notice, that from
and after said date interest will cease to accrue and that the redemption is
for a sinking fund, if such is the case. If less than all the Securities of a
series are to be redeemed, the notice to the holders of Securities of that
series to be redeemed in whole or in part shall specify the particular
Securities to be so redeemed. In case any Security is to be redeemed in part
only, the notice that relates to such Security shall state the portion of the
principal amount thereof to be redeemed, and shall state that on and after the
redemption date, upon surrender of such Security, a new Security or Securities
of such series in principal amount equal to the unredeemed portion thereof will
be issued.

 

                (b)  If less
than all the Securities of a series are to be redeemed, the Company shall give
the Trustee at least 35 days’ notice in advance of the date fixed for
redemption as to the aggregate principal amount of Securities of the series to
be redeemed, and thereupon the Trustee shall select, by lot or in such other
manner as it shall deem appropriate and fair in its discretion and that may
provide for the selection of a portion or portions (equal to one thousand U.S.
dollars ($1,000) or any integral multiple thereof) of the principal amount of
such Securities of a denomination larger than $1,000, the Securities to be
redeemed and shall thereafter promptly notify the Company in writing of the
numbers of the Securities to be redeemed, in whole or in part.

 

                The Company may, if and whenever it shall so elect,
by delivery of instructions signed on its behalf by two of its officers,
instruct the Trustee or any paying agent to call all or any part of the
Securities of a particular series for redemption and to give notice of
redemption in the manner set forth in this Section, such notice to be in the
name of the Company or its own name as the Trustee or such paying agent may
deem advisable. In any case in which notice of redemption is to be given by the
Trustee or any such paying agent, the Company shall deliver or cause to be
delivered to, or permit to remain with, the Trustee or such paying agent, as
the case may be, such Security Register, transfer books or other records, or
suitable copies or extracts therefrom, sufficient to enable the Trustee or such
paying agent to give any notice by mail that may be required under the
provisions of this Section.

 

                SECTION 3.03 Payment Upon Redemption.

 

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

 

                (b)  Upon
presentation of any Security of such series that is to be redeemed in part 

 

10

 

only, the Company shall
execute and the Trustee shall authenticate and the office or agency where the
Security is presented shall deliver to the holder thereof, at the expense of
the Company, a new Security of the same series of authorized denominations in
principal amount equal to the unredeemed portion of the Security so presented.

 

                SECTION 3.04 Sinking Fund.

 

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

 

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

 

                SECTION 3.05 Satisfaction of Sinking Fund Payments
with Securities.

 

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

 

                SECTION 3.06 Redemption of Securities for Sinking
Fund.

 

                Not less than 35 days prior to each sinking fund
payment date for any series of Securities, the Company will deliver to the
Trustee an Officers’ Certificate specifying the amount of the next ensuing
sinking fund payment for that series pursuant to the terms of the series, the
portion thereof, if any, that is to be satisfied by delivering and crediting
Securities of that series pursuant to Section 3.05 and the basis for such
credit and will, together with such Officers’ Certificate, deliver to the
Trustee any Securities to be so delivered. Not less than 30 days before each
such sinking fund payment date the Trustee shall select the Securities to be
redeemed upon such sinking fund payment date in the manner specified in Section
3.02 and cause notice of the redemption thereof to be given in the name of and
at the expense of the Company in the manner provided in Section 3.02. Such
notice having been duly given, the redemption of such Securities shall be made
upon the terms and in the manner stated in Section 3.03.

 

 

ARTICLE
IV.

 

CERTAIN
COVENANTS

 

                SECTION 4.01 Payment of Principal, Premium and
Interest.

 

                The Company will duly and punctually pay or cause to
be paid the principal of (and premium, if any) and interest on the Securities
of that series at the time and place and in the manner provided herein and
established with respect to such Securities.

 

                SECTION 4.02 Maintenance of Office or Agency.

 

                So long as any series of the Securities remain
Outstanding, the Company agrees to maintain an office or agency in the Borough
of Manhattan, the City and State of New York, with respect to each such series
and at such other location or locations as may be designated as provided in
this Section 4.02, where (i) Securities of that series may be presented for
payment, (ii) Securities of that series may be presented as hereinabove
authorized for registration of transfer and exchange, and (iii) notices and
demands to or upon the Company in respect of the Securities of that series and
this Indenture may be given or served, such designation to continue with
respect to such office or agency until the Company shall, by written notice
signed by one of its officers and delivered to the trustee, designate some
other office or agency for such purposes or any of them. If at any time the
Company shall fail to maintain any such required office or agency or shall fail
to furnish the Trustee with the address thereof, such presentations, notices
and demands may be made or served at the Corporate 

 

 

11

 

Trust Office of the Trustee,
and the Company hereby appoints the Trustee as its agent to receive all such
presentations, notices and demands.

 

                SECTION 4.03 Paying Agents.

 

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

 

(1)
 that it will hold all sums held by it as
such agent for the payment of the principal of (and premium, if any) or
interest on the Securities of that series (whether such sums have been paid to
it by the Company or by any other obligor of such Securities) in trust for the
benefit of the Persons entitled thereto;

 

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

 

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

 

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

 

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

 

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

 

                SECTION 4.04 Appointment to Fill Vacancy in Office of
Trustee.

 

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

 

                SECTION 4.05 Compliance with Consolidation
Provisions.

 

                The Company will not, while any of the Securities
remain Outstanding, consolidate with, or merge into, or merge into itself, or
sell or convey all or substantially all of its property to any other company
unless the provisions of Article Ten hereof are complied with.

 

ARTICLE
V.

 

SECURITYHOLDERS’
LISTS AND REPORTS

BY
THE COMPANY AND THE TRUSTEE

 

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

 

12

 

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

 

                SECTION 5.02 Preservation of Information;
Communications with Securityholders.

 

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

 

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

 

                (c)  Securityholders
may communicate as provided in Section 312(b) of the Trust Indenture Act with
other Securityholders with respect to their rights under this Indenture or
under the Securities.

 

                SECTION 5.03 Reports by the Company.

 

                (a)  The
Company covenants and agrees to file with the Trustee, within 30 days after the
Company is required to file the same with the Commission, copies of the annual
reports and of the information, documents and other reports (or copies of such
portions of any of the foregoing as the Commission may from time to time by
rules and regulations prescribe) that the Company may be required to file with
the Commission pursuant to Section 13 or Section 15(d) of the Exchange Act; or,
if the Company is not required to file information, documents or reports
pursuant to either of such sections, then to file with the Trustee and the
Commission, in accordance with the rules and regulations prescribed from time
to time by the Commission, such of the supplementary and periodic information,
documents and reports that may be required pursuant to Section 13 of the
Exchange Act, in respect of a security listed and registered on a national
securities exchange as may be prescribed from time to time in such rules and
regulations.

 

                (b)  The
Company covenants and agrees to file with the Trustee and the Commission, in
accordance with the rules and regulations prescribed from 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
this Indenture as may be required from time to time by such rules and
regulations.

 

                (c)  The
Company covenants and agrees to transmit by mail, first class postage prepaid,
or reputable over-night delivery service that provides for evidence of receipt,
to the Securityholders, as their names and addresses appear upon the Security
Register, within 30 days after the filing thereof with the Trustee, such
summaries of any information, documents and reports required to be filed by the
Company pursuant to subsections (a) and (b) of this Section as may be required
by rules and regulations prescribed from time to time by the Commission.

 

                SECTION 5.04 Reports by the Trustee.

 

                (a)  On or
before July 15 in each year in which any of the Securities are Outstanding, the
Trustee shall transmit by mail, first class postage prepaid, to the
Securityholders, as their names and addresses appear upon the Security Register,
a brief report dated as of the preceding May 15, if and to the extent required
under Section 313(a) of the Trust Indenture Act.

 

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

 

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

 

ARTICLE
VI.

 

13

 

REMEDIES
OF THE TRUSTEE AND

SECURITYHOLDERS
ON EVENT OF DEFAULT

 

                SECTION 6.01 Events of Default.

 

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

 

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

 

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

 

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

 

(4)
 the Company, pursuant to or within the
meaning of any Bankruptcy Law, (i) commences a voluntary case, (ii) consents to
the entry of an order for relief against it in an involuntary case, (iii)
consents to the appointment of a Custodian of it or for all or substantially
all of its property or (iv) makes a general assignment for the benefit of its creditors;
or

 

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

 

                (b)  In each
and every such case, unless the principal of all the Securities of that series
shall have already become due and payable, either the Trustee or the holders of
not less than 25% in aggregate principal amount of the Securities of that
series then Outstanding hereunder, by notice in writing to the Company (and to
the Trustee if given by such Securityholders), may declare the principal of all
the Securities of that series to be due and payable immediately, and upon any
such declaration the same shall become and shall be immediately due and
payable, notwithstanding anything contained in this Indenture or in the
Securities of that series or established with respect to that series pursuant
to Section 2.01 to the contrary.

 

                (c)  At any
time after the principal of the Securities of that series shall have been so
declared due and payable, and before any judgment or decree for the payment of
the moneys due shall have been obtained or entered as hereinafter provided, the
holders of a majority in aggregate principal amount of the Securities of that
series then Outstanding hereunder, by written notice to the Company and the
Trustee, may rescind and annul such declaration and its consequences if: (i)
the Company has paid or deposited with the Trustee a sum sufficient to pay all
matured installments of interest upon all the Securities of that series and the
principal of (and premium, if any, on) any and all Securities of that series
that shall have become due otherwise than by acceleration (with interest upon
such 

 

14

 

principal and premium, if
any, and, to the extent that such payment is enforceable under applicable law,
upon overdue installments of interest, at the rate per annum expressed in the
Securities of that series to the date of such payment or deposit) and the
amount payable to the Trustee under Section 7.06, and (ii) any and all Events
of Default under the Indenture with respect to such series, other than the
nonpayment of principal on Securities of that series that shall not have become
due by their terms, shall have been remedied or waived as provided in Section
6.06.

 

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

 

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

 

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

 

                (a)  The
Company covenants that (1) in case it shall default in the payment of any
installment of interest on any of the Securities of a series, or any payment
required by any sinking or analogous fund established with respect to that
series as and when the same shall have become due and payable, and such default
shall have continued for a period of 90 Business Days, or (2) in case it shall
default in the payment of the principal of (or premium, if any, on) any of the
Securities of a series when the same shall have become due and payable, whether
upon maturity of the Securities of a series or upon redemption or upon
declaration or otherwise, then, upon demand of the Trustee, the Company will
pay to the Trustee, for the benefit of the holders of the Securities of that
series, the whole amount that then shall have been become due and payable on
all such Securities for principal (and premium, if any) or interest, or both,
as the case may be, with interest upon the overdue principal (and premium, if
any) and (to the extent that payment of such interest is enforceable under
applicable law) upon overdue installments of interest at the rate per annum
expressed in the Securities of that series; and, in addition thereto, such
further amount as shall be sufficient to cover the costs and expenses of
collection, and the amount payable to the Trustee under Section 7.06.

 

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

 

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

 

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

 

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

 

15

 

or to enforce any other legal
or equitable right vested in the Trustee by this Indenture or by law.

 

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

 

                SECTION 6.03 Application of Moneys Collected.

 

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

 

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

 

                SECOND: To the payment of the amounts then due and
unpaid upon Securities of such series for principal (and premium, if any) and interest,
in respect of which or for the benefit of which such money has been collected, 

ratably, without preference
or priority of any kind, according to the amounts due and payable on such
Securities for principal (and premium, if any) and interest, respectively.

 

                SECTION 6.04 Limitation on Suits.

 

                No holder of any Security of any series shall have
any right by virtue or by availing of any provision of this Indenture to
institute any suit, action or proceeding in equity or at law upon or under or
with respect to this Indenture or for the appointment of a receiver or trustee,
or for any other remedy hereunder, unless (i) such holder previously shall have
given to the Trustee written notice of an Event of Default and of the
continuance thereof with respect to the Securities of such series specifying
such Event of Default, as hereinbefore provided; (ii) the holders of not less
than 25% in aggregate principal amount of the Securities of such series then
Outstanding shall have made written request upon the Trustee to institute such
action, suit or proceeding in its own name as trustee hereunder; (iii) such
holder or holders shall have offered to the Trustee such reasonable indemnity
as it may require against the costs, expenses and liabilities to be incurred
therein or thereby; and (iv) the Trustee for 60 days after its receipt of such
notice, request and offer of indemnity, shall have failed to institute any such
action, suit or proceeding and (v) during such 60 day period, the holders of a
majority in principal amount of the Securities of that series do not give the
Trustee a direction inconsistent with the request.

 

                Notwithstanding anything contained herein to the
contrary, any other provisions of this Indenture, the right of any holder of
any Security to receive payment of the principal of (and premium, if any) and
interest on such Security, as therein provided, on or after the respective due
dates expressed in such Security (or in the case of redemption, on the
redemption date), or to institute suit for the enforcement of any such payment
on or after such respective dates or redemption date, shall not be impaired or
affected without the consent of such holder and by accepting a Security
hereunder it is expressly understood, intended and covenanted by the taker and
holder of every Security of such series with every other such taker and holder
and the Trustee, that no one or more holders of Securities of such series shall
have any right in any manner whatsoever by virtue or by availing of any
provision of this Indenture to affect, disturb or prejudice the rights of the
holders of any other of such Securities, or to obtain or seek to obtain
priority over or preference to any other such holder, or to enforce any right
under this Indenture, except in the manner herein provided and for the equal,
ratable and common benefit of all holders of Securities of such series. For the
protection and enforcement of the provisions of this Section, each and every
Securityholder and the Trustee shall be entitled to such relief as can be given
either at law or in equity.

 

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

 

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

 

                (b)  No delay
or omission of the Trustee or of any holder of any of the Securities to 

 

16

 

exercise any right or power
accruing upon any Event of Default occurring and continuing as aforesaid shall
impair any such right or power, or shall be construed to be a waiver of any
such default or on acquiescence therein; and, subject to the provisions of
Section 6.04, every power and remedy given by this Article or by law to the
Trustee or the Securityholders may be exercised from time to time, and as often
as shall be deemed expedient, by the Trustee or by the Securityholders.

 

                SECTION 6.06 Control by Securityholders.

 

                The holders of a majority in aggregate principal
amount of the Securities of any series at the time Outstanding, determined in
accordance with Section 8.04, shall have the right to direct the time, method
and place of conducting any proceeding for any remedy available to the Trustee,
or exercising any trust or power conferred on the Trustee with respect to such
series; provided, however, that such direction shall not be in conflict with
any rule of law or with this Indenture or be unduly prejudicial to the rights
of holders of Securities of any other series at the time Outstanding determined
in accordance with Section 8.04. Subject to the provisions of Section 7.01, the
Trustee shall have the right to decline to follow any such direction if the
Trustee in good faith shall, by a Responsible Officer or Officers of the
Trustee, determine that the proceeding so directed would involve the Trustee in
personal liability. The holders of a majority in aggregate principal amount of
the Securities of any series at the time Outstanding affected thereby,
determined in accordance with Section 8.04, may on behalf of the holders of all
of the Securities of such series waive any past default in the performance of
any of the covenants contained herein or established pursuant to Section 2.01
with respect to such series and its consequences, except a default in the
payment of the principal of, or premium, if any, or interest on, any of the
Securities of that series as and when the same shall become due by the terms of
such Securities otherwise than by acceleration (unless such default has been
cured and a sum sufficient to pay all matured installments of interest and
principal and any premium has been deposited with the Trustee (in accordance
with Section 6.01(c)). Upon any such waiver, the default covered thereby shall
be deemed to be cured for all purposes of this Indenture and the Company, the
Trustee and the holders of the Securities of such series shall be restored to
their former positions and rights hereunder, respectively; but no such waiver
shall extend to any subsequent or other default or impair any right consequent
thereon.

 

                SECTION 6.07 Undertaking to Pay Costs.

 

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

 

ARTICLE
VII.

 

CONCERNING
THE TRUSTEE

 

                SECTION 7.01 Certain Duties and Responsibilities of
Trustee.

 

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

 

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

 

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

 

17

 

occurred:

 

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

 

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

 

(2)
 the Trustee shall not be liable for any
error of judgment made in good faith by a Responsible Officer or Responsible Officers
of the Trustee, unless it shall be proved that the Trustee, was negligent in
ascertaining the pertinent facts;

 

(3)
 the Trustee shall not be liable with
respect to any action taken or omitted to be taken by it in good faith in
accordance with the direction of the holders of not less than a majority in principal
amount of the Securities of any series at the time Outstanding relating to the
time, method and place of conducting any proceeding for any remedy available to
the Trustee, or exercising any trust or power conferred upon the Trustee under
this Indenture with respect to the Securities of that series; and

 

(4)
 None of the provisions contained in this
Indenture shall require the Trustee to expend or risk its own funds or
otherwise incur personal financial liability in the performance of any of its duties
or in the exercise of any of its rights or powers, if there is reasonable
ground for believing that the repayment of such funds or liability is not
reasonably assured to it under the terms of this Indenture or adequate
indemnity against such risk is not reasonably assured to it.

 

                SECTION 7.02 Certain Rights of Trustee.

 

                Except as otherwise provided in Section 7.01:

 

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

 

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

 

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

 

                (d)  The
Trustee shall be under no obligation to exercise any of the rights or powers
vested in it by this Indenture at the request, order or direction of any of the
Securityholders, pursuant to the provisions of this Indenture, unless such
Securityholders shall have offered to the Trustee reasonable security or
indemnity against the costs, expenses and liabilities that may be incurred
therein or thereby; nothing contained herein shall, however, relieve the
Trustee of the obligation, upon the occurrence of an Event of Default with
respect to a series of the Securities (that has not 

 

18

 

been cured or waived) to
exercise with respect to Securities of that series such of the rights and
powers vested in it by this Indenture, and to use the same degree of care and
skill in their exercise, as a prudent man would exercise or use under the
circumstances in the conduct of his own affairs;

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

                SECTION 7.04 May Hold Securities.

 

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

 

                SECTION 7.05 Moneys Held in Trust.

 

                Subject to the provisions of Section 11.05, all
moneys received by the Trustee shall, until used or applied as herein provided,
be held in trust for the purposes for which they were received, but need not be
segregated from other funds except to the extent required by law. The Trustee
shall be under no liability for interest on any moneys received by it hereunder
except such as it may agree with the Company to pay thereon.

 

                SECTION 7.06 Compensation and Reimbursement.

 

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

 

19

 

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

 

                SECTION 7.07 Reliance on Officers’ Certificate.

 

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

 

                SECTION 7.08 Disqualification; Conflicting Interests.

 

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

 

                SECTION 7.09 Corporate Trustee Required; Eligibility.

 

                There shall at all times be a Trustee with respect to
the Securities issued hereunder which shall at all times be a corporation
organized and doing business under the laws of the United States of America or
any State or Territory thereof or of the District of Columbia, or a corporation
or other Person permitted to act as trustee by the Commission, authorized under
such laws to exercise corporate trust powers, having a combined capital and
surplus of at least 50 million U.S. dollars ($50,000,000), and subject to
supervision or examination by Federal, State, Territorial, or District of
Columbia authority. If such corporation publishes reports of condition at least
annually, pursuant to law or to the requirements of the aforesaid supervising
or examining authority, then for the purposes of this Section, the combined capital
and surplus of such corporation shall be deemed to be its combined capital and
surplus as set forth in its most recent report of condition so published. The
Company may not, nor may any Person directly or indirectly controlling,
controlled by, or under common control with the Company, serve as Trustee. In
case at any time the Trustee shall cease to be eligible in accordance with the
provisions of this Section, the Trustee shall resign immediately in the manner
and with the effect specified in Section 7.10.

 

                SECTION 7.10 Resignation and Removal; Appointment of
Successor.

 

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

 

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

 

(1)
 the Trustee shall fail to comply with
the provisions of Section 7.08 after written request therefor by the Company or
by any Securityholder who has been a bona fide holder of a Security or

Securities for at least six
months; or 

 

(2)
 the Trustee shall cease to be eligible
in accordance with the provisions of Section 7.09 and shall fail to resign
after written request therefor by the Company or by any such Securityholder; or

 

(3)
 the Trustee shall become incapable of
acting, or shall 

 

20

 

be adjudged a bankrupt or
insolvent, or commence a voluntary bankruptcy proceeding, or a receiver of the
Trustee or of its property shall be appointed or consented to, or any public
officer shall take charge or control of the Trustee or of its property or
affairs for the purpose of rehabilitation, conservation or liquidation, then,
in any such case, the Company may remove the Trustee with respect to all
Securities and appoint a successor trustee by written instrument, in duplicate,
executed by order of the Board of Directors, one copy of which instrument shall
be delivered to the Trustee so removed and one copy to the successor trustee, or,
unless the Trustee’s duty to resign is stayed as provided herein, any Securityholder
who has been a bona fide holder of a Security or Securities for at least six
months may, on behalf of that holder and all others similarly situated,
petition any court of competent jurisdiction for the removal of the Trustee and
the appointment of a successor trustee. Such court may thereupon after such
notice, if any, as it may deem proper and prescribe, remove the Trustee and
appoint a successor trustee.

 

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

 

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

 

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

 

                SECTION 7.11 Acceptance of Appointment By Successor.

 

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

 

                (b)  In case of
the appointment hereunder of a successor trustee with respect to the Securities
of one or more (but not all) series, the Company, the retiring Trustee and each
successor trustee with respect to the Securities of one or more series shall
execute and deliver an indenture supplemental hereto wherein each successor
trustee shall accept such appointment and which (1) shall contain such
provisions as shall be necessary or desirable to transfer and confirm to, and
to vest in, each successor trustee all the rights, powers, trusts and duties of
the retiring Trustee with respect to the Securities of that or those series to
which the appointment of such successor trustee relates, (2) shall contain such
provisions as shall be deemed necessary or desirable to confirm that all the
rights, powers, trusts and duties of the retiring Trustee with respect to the
Securities of that or those series as to which the retiring Trustee is not
retiring shall continue to be vested in the retiring Trustee, and (3) shall add
to or change any of the provisions of this Indenture as shall be necessary to
provide for or facilitate the administration of the trusts hereunder by more
than one Trustee, it being understood that nothing herein or in such
supplemental indenture shall constitute such Trustees co-trustees of the same
trust, that each such Trustee shall be trustee of a trust or trusts hereunder
separate and apart from any trust or trusts hereunder administered by any other
such Trustee and that no Trustee shall be responsible for any act or failure to
act on the part of any other Trustee hereunder; and upon the execution and
delivery of such supplemental indenture the resignation or removal of the
retiring Trustee shall become effective to the extent provided therein, such
retiring Trustee shall with respect to the Securities of that or those series
to which the appointment of such successor trustee relates have no further
responsibility for the exercise of rights and powers or for the performance of
the duties and obligations vested in the Trustee under this Indenture, and each
such successor trustee, without any further act, deed or conveyance, shall
become vested with all the rights, powers, trusts and duties of the retiring
Trustee with respect to the Securities of that or those series to which the
appointment of such successor trustee relates; but, on request of the Company
or any successor trustee, such retiring Trustee shall duly assign, transfer and
deliver to such successor trustee, to the extent contemplated by such
supplemental indenture, 

 

21

 

the property and money held
by such retiring Trustee hereunder with respect to the Securities of that or
those series to which the appointment of such successor trustee relates.

 

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

 

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

 

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

 

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

 

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

 

                SECTION 7.13 Preferential Collection of Claims
Against the Company.

 

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

 

ARTICLE
VIII.

 

CONCERNING
THE SECURITYHOLDERS

 

                SECTION 8.01 Evidence of Action by Securityholders.

 

                Whenever in this Indenture it is provided that the
holders of a majority or specified percentage in aggregate principal amount of
the Securities of a particular series may take any action (including the making
of any demand or request, the giving of any notice, consent or waiver or the
taking of any other action), the fact that at the time of taking any such
action the holders of such majority or specified percentage of that series have
joined therein may be evidenced by any instrument or any number of instruments
of similar tenor executed by such holders of Securities of that series in
Person or by agent or proxy appointed in writing.

 

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

 

                SECTION 8.02 Proof of Execution by Securityholders.

 

                Subject to the provisions of Section 7.01, proof of
the execution of any instrument 

 

22

 

by a Securityholder (such
proof will not require notarization) or his agent or proxy and proof of the
holding by any Person of any of the Securities shall be sufficient if made in
the following manner:

 

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

 

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

 

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

 

                SECTION 8.03 Who May be Deemed Owners.

 

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

 

                SECTION 8.04 Certain Securities Owned by Company
Disregarded.

 

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

 

                SECTION 8.05 Actions Binding on Future
Securityholders.

 

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

 

ARTICLE
IX.

 

SUPPLEMENTAL
INDENTURES

 

                SECTION 9.01 Supplemental Indentures Without the
Consent of Securityholders.

 

                In addition to any supplemental indenture otherwise
authorized by this Indenture, the Company and the Trustee may from time to time
and at any time enter into an indenture or indentures supplemental hereto
(which shall conform to the provisions of the Trust Indenture Act as then in
effect), without the consent of the Securityholders, for one or more of the
following purposes:

 

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

 

23

 

                (b)  to comply
with Article Ten;

 

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

 

                (d)  to add to
the covenants of the Company for the benefit of the holders of all or any
Series of Securities (and if such covenants are to be for the benefit of less
than all series of Securities, stating that such covenants are expressly being
included solely for the benefit of such series) or to surrender any right or
power herein conferred upon the Company;

 

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

 

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

 

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

 

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

 

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

 

                SECTION 9.02 Supplemental Indentures With Consent of
Securityholders.

 

                With the consent (evidenced as provided in Section
8.01) of the holders of not less than a majority in aggregate principal amount
of the Securities of each series affected by such supplemental indenture or
indentures at the time Outstanding, the Company, when authorized by Board
Resolutions, and the Trustee may from time to time and at any time enter into
an indenture or indentures supplemental hereto (which shall conform to the
provisions of the Trust Indenture Act as then in effect) for the purpose of
adding any provisions to or changing in any manner or eliminating any of the
provisions of this Indenture or of any supplemental indenture or of modifying
in any manner not covered by Section 9.01 the rights of the holders of the
Securities of such series under this Indenture; provided, however, that no such
supplemental indenture shall, without the consent of the holders of each
Security then Outstanding and affected thereby, (i) extend the fixed maturity
of any Securities of any series, or reduce the principal amount thereof, or
reduce the rate or extend the time of payment of interest thereon, or reduce
any premium payable upon the redemption thereof; (ii) change any obligation to
pay additional amounts; (iii) reduce the amount of principal of an original
issue discount security or any other Security payable upon acceleration of the
maturity thereof; (iv) change currency in which any Security or any premium or
interest is payable; (v) impair the right to enforce any payment on or with
respect to any Security; (vi) adversely change the right to convert or
exchange, including decreasing the conversion rate or increasing the conversion
price of, such Security (if applicable); (vii) if the Securities are secured,
change the terms and conditions pursuant to which the Securities are secured in
a manner adverse to the holders of the Securities; (vii) reduce the percentage
in principal amount of outstanding Securities of any series, the consent of
whose holders is required for modification or amendment of the indenture or for
waiver of compliance with certain provisions of the indenture or for waiver of
certain defaults; (ix) reduce the requirements contained in the indenture for
quorum or voting; (x) change any obligations of the Company to maintain an
office or agency in the places and for the purposes required by the indentures;
or (xi) modify any of the above provisions.

 

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

 

                SECTION 9.03 Effect of Supplemental Indentures.

 

                Upon the execution of any supplemental indenture
pursuant to the provisions of this Article or of Section 10.01, this Indenture
shall, with respect to such series, be and be deemed to be modified and amended
in accordance therewith and the respective rights, limitations of rights,
obligations, duties and immunities under this Indenture of the Trustee, the
Company and the holders 

 

24

 

of Securities of the series
affected thereby shall thereafter be determined, exercised and enforced
hereunder subject in all respects to such modifications and amendments, and all
the terms and conditions of any such supplemental indenture shall be and be
deemed to be part of the terms and conditions of this Indenture for any and all
purposes.

 

                SECTION 9.04 Securities Affected by Supplemental
Indentures.

 

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

 

                SECTION 9.05 Execution of Supplemental Indentures.

 

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

 

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

 

ARTICLE
X.

 

SUCCESSOR
CORPORATION

 

                SECTION 10.01 Company May Consolidate, Etc.

 

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

 

                SECTION 10.02 Successor Corporation Substituted.

 

                (a)  In case of
any such consolidation, merger, sale, conveyance, transfer or other disposition
and upon the assumption by the successor corporation, by supplemental
indenture, executed and delivered to the Trustee and satisfactory in form to
the Trustee, of the due and punctual payment of the principal of, premium, if
any, and interest on all of the Securities of all series Outstanding and the
due and punctual performance of all of the covenants and conditions of this
Indenture or 

 

25

 

established with respect to
each series of the Securities pursuant to Section 2.01 to be performed by the
Company with respect to each series, such successor corporation or entity shall
succeed to and be substituted for the Company with the same effect as if it had
been named as the Company herein, and thereupon the predecessor corporation
shall be relieved of all obligations and covenants under this Indenture and the
Securities.

 

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

 

                (c)  Nothing
contained in this Indenture or in any of the Securities shall prevent the
Company from merging into itself or acquiring by purchase or otherwise all or
any part of the property of any other Person (whether or not affiliated with
the Company).

 

                SECTION 10.03 Evidence of Consolidation, Etc. to
Trustee.

 

                The Trustee, subject to the provisions of Section
7.01, may receive an Opinion of Counsel as conclusive evidence that any such
consolidation, merger, sale, conveyance, transfer or other disposition, and any
such assumption, comply with the provisions of this Article.

 

ARTICLE
XI.

 

SATISFACTION
AND DISCHARGE

 

                SECTION 11.01 Satisfaction and Discharge of Indenture.

 

                If at any time: (a) the Company shall have delivered
to the Trustee for cancellation all Securities of a series theretofore
authenticated (other than any Securities that shall have been destroyed, lost
or stolen and that shall have been replaced or paid as provided in Section
2.07) and Securities for whose payment money or Governmental Obligations have
theretofore been deposited in trust or segregated and held in trust by the
Company (and thereupon repaid to the Company or discharged from such trust, as
provided in Section 11.05); or (b) all such Securities of a particular series
not theretofore delivered to the Trustee for cancellation shall have become due
and payable, or are by their terms to become due and payable within one year or
are to be called for redemption within one year under arrangements satisfactory
to the Trustee for the giving of notice of redemption, and the Company shall
deposit or cause to be deposited with the Trustee as trust funds the entire
amount in moneys or Governmental Obligations sufficient or a combination
thereof, sufficient in the opinion of a nationally recognized firm of
independent public accountants expressed in a written certification thereof
delivered to the Trustee, to pay at maturity or upon redemption all Securities
of that series not theretofore delivered to the Trustee for cancellation,
including principal (and premium, if any) and interest due or to become due to
such date of maturity or date fixed for redemption, as the case may be, and if
the Company shall also pay or cause to be paid all other sums payable hereunder
with respect to such series by the Company then this Indenture shall thereupon
cease to be of further effect with respect to such series except for the
provisions of Sections 2.03, 2.05, 2.07, 4.01, 4.02, 4.03 and 7.10, that shall
survive until the date of maturity or redemption date, as the case may be, and
Sections 7.06 and 11.05, that shall survive to such date and thereafter, and
the Trustee, on demand of the Company and at the cost and expense of the
Company shall execute proper instruments acknowledging satisfaction of and
discharging this Indenture with respect to such series.

 

                SECTION 11.02 Discharge of Obligations.

 

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

 

                SECTION 11.03 Deposited Moneys to be Held in Trust.

 

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

 

26

 

the particular series of
Securities for the payment or redemption of which such moneys or Governmental
Obligations have been deposited with the Trustee.

 

                SECTION 11.04 Payment of Moneys Held by Paying
Agents.

 

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

 

                SECTION 11.05 Repayment to Company.

 

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

 

ARTICLE
XII.

 

IMMUNITY
OF INCORPORATORS, STOCKHOLDERS,

OFFICERS
AND DIRECTORS

 

                SECTION 12.01 No Recourse.

 

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

 

ARTICLE
XIII.

 

MISCELLANEOUS
PROVISIONS

 

                SECTION 13.01 Effect on Successors and Assigns.

 

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

 

                SECTION 13.02 Actions by Successor.

 

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

 

                SECTION 13.03 Surrender of Company Powers.

 

                The Company by instrument in writing executed by
authority of 2/3 (two-thirds) of its Board of Directors and delivered to the
Trustee may surrender any of the powers reserved to the Company, 

 

27

 

and thereupon such power so
surrendered shall terminate both as to the Company and as to any successor
corporation.

 

                SECTION 13.04 Notices.

 

                Except
as otherwise expressly provided herein any notice or demand that 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 the Company may be given
or served by being deposited first class postage prepaid in a post-office
letterbox addressed (until another address is filed in writing by the Company with
the Trustee), as follows: Crystal River Capital, Inc., Three World Financial
Center, 200 Vesey Street, 10th Floor, New York, NY 10281. Any notice, election,
request or demand by the Company or any Securityholder to or upon the Trustee
shall be deemed to have been sufficiently given or made, for all purposes, if
given or made in writing at the Corporate Trust Office of the Trustee.

 

                SECTION 13.05 Governing Law.

 

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

 

                SECTION 13.06 Treatment of Securities as Debt.

 

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

 

                SECTION 13.07 Compliance Certificates and Opinions.

 

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

 

                (b)  Each
certificate or opinion provided for in this Indenture and delivered to the
Trustee with respect to compliance with a condition or covenant in this
Indenture shall include (1) a statement that the Person making such certificate
or opinion has read such covenant or condition; (2) 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; (3) a statement
that, in the opinion of such Person, 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 (4) a
statement as to whether or not, in the opinion of such Person, such condition
or covenant has been complied with.

 

                SECTION 13.08 Payments on Business Days.

 

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

 

                SECTION 13.09 Conflict with Trust Indenture Act.

 

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

 

                SECTION 13.10 Counterparts.

 

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

 

                SECTION 13.11 Separability.

 

28

 

                In case any one or more of the provisions contained
in this Indenture or in the Securities of any series shall for any reason be
held to be invalid, illegal or unenforceable in any respect, such invalidity,
illegality or unenforceability shall not affect any other provisions of this
Indenture or of such Securities, but this Indenture and such Securities shall
be construed as if such invalid or illegal or unenforceable provision had never
been contained herein or therein.

 

                SECTION 13.12 Assignment.

 

                The Company will have the right at all times to
assign any of its rights or obligations under this Indenture to a direct or
indirect wholly-owned Subsidiary of the Company, provided that, in the event of
any such assignment, the Company will remain liable for all such obligations.
Subject to the foregoing, the Indenture is binding upon and inures to the
benefit of the parties thereto and their respective successors and assigns.
This Indenture may not otherwise be assigned by the parties thereto.

 

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

 

CRYSTAL
RIVER CAPITAL, INC.

 

	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  [                                                                                       ],

  
	
   

  	
  as
  Trustee

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name:

  	
   

  
	
   

  	
  Title:

  	
   

  

 

 

29

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