Document:

Exhibit
4.1

 

SIMPSON
MANUFACTURING CO., INC.

 

and

 

COMPUTERSHARE
TRUST COMPANY, N.A.

 

Rights
Agent

 

 

 

 

AMENDED
AND RESTATED RIGHTS AGREEMENT

 

 

Dated
as of June 15, 2009

 

 

TABLE OF
CONTENTS

(continued)

 

	
   

  	
   

  	
   

  	
  Page

  
	
   

  	
   

  	
   

  	
   

  
	
  1.

  	
  Certain
  Definitions

  	
   

  	
  1

  
	
   

  	
   

  	
   

  	
   

  
	
  2.

  	
  Appointment
  of Rights Agent

  	
   

  	
  4

  
	
   

  	
   

  	
   

  	
   

  
	
  3.

  	
  Issue
  of Rights Certificates

  	
   

  	
  4

  
	
   

  	
   

  	
   

  	
   

  
	
  4.

  	
  Form of
  Rights Certificates

  	
   

  	
  6

  
	
   

  	
   

  	
   

  	
   

  
	
  5.

  	
  Countersignature
  and Registration

  	
   

  	
  6

  
	
   

  	
   

  	
   

  	
   

  
	
  6.

  	
  Transfer,
  Split Up, Combination and Exchange of Rights Certificates; Mutilated,
  Destroyed, Lost or Stolen Rights Certificates

  	
   

  	
  7

  
	
   

  	
   

  	
   

  	
   

  
	
  7.

  	
  Exercise
  of Rights Purchase Price; Expiration Date of Rights

  	
   

  	
  7

  
	
   

  	
   

  	
   

  	
   

  
	
  8.

  	
  Cancellation
  and Destruction of Rights Certificates

  	
   

  	
  9

  
	
   

  	
   

  	
   

  	
   

  
	
  9.

  	
  Reservation
  and Availability of Preferred Stock

  	
   

  	
  9

  
	
   

  	
   

  	
   

  	
   

  
	
  10.

  	
  Preferred
  Stock Record Date

  	
   

  	
  10

  
	
   

  	
   

  	
   

  	
   

  
	
  11.

  	
  Adjustment
  of Purchase Price, Number and Kind of Shares or Number of Rights

  	
   

  	
  10

  
	
   

  	
   

  	
   

  	
   

  
	
  12.

  	
  Certificate
  of Adjusted Purchase Price or Number of Shares

  	
   

  	
  14

  
	
   

  	
   

  	
   

  	
   

  
	
  13.

  	
  Consolidation
  Merger or Sale or Transfer of Assets or Earning Power

  	
   

  	
  15

  
	
   

  	
   

  	
   

  	
   

  
	
  14.

  	
  Additional
  Covenants

  	
   

  	
  17

  
	
   

  	
   

  	
   

  	
   

  
	
  15.

  	
  Fractional
  Rights and Fractional Shares

  	
   

  	
  17

  
	
   

  	
   

  	
   

  	
   

  
	
  16.

  	
  Rights
  of Action

  	
   

  	
  18

  
	
   

  	
   

  	
   

  	
   

  
	
  17.

  	
  Agreement
  of Rights Holders

  	
   

  	
  18

  
	
   

  	
   

  	
   

  	
   

  
	
  18.

  	
  Rights
  Certificate Holder Not Deemed a Stockholder

  	
   

  	
  19

  
	
   

  	
   

  	
   

  	
   

  
	
  19.

  	
  Concerning
  the Rights Agent

  	
   

  	
  19

  
	
   

  	
   

  	
   

  	
   

  
	
  20.

  	
  Merger
  or Consolidation or Change of Name of Rights Agent

  	
   

  	
  19

  
	
   

  	
   

  	
   

  	
   

  
	
  21.

  	
  Duties
  of Rights Agent

  	
   

  	
  20

  
	
   

  	
   

  	
   

  	
   

  
	
  22.

  	
  Change
  of Rights Agent

  	
   

  	
  21

  
	
   

  	
   

  	
   

  	
   

  
	
  23.

  	
  Issuance
  of New Rights Certificates

  	
   

  	
  22

  
	
   

  	
   

  	
   

  	
   

  
	
  24.

  	
  Redemption,
  Termination and Exchange

  	
   

  	
  22

  
	
   

  	
   

  	
   

  	
   

  
	
  25.

  	
  Notice
  of Certain Events

  	
   

  	
  25

  
	
   

  	
   

  	
   

  	
   

  
	
  26.

  	
  Notices

  	
   

  	
  26

  
	
   

  	
   

  	
   

  	
   

  
	
  27.

  	
  Supplements
  and Amendments

  	
   

  	
  26

  
	
   

  	
   

  	
   

  	
   

  
	
  28.

  	
  Determination
  and Actions by the Board of Directors, etc

  	
   

  	
  26

  
	
   

  	
   

  	
   

  	
   

  
	
  29.

  	
  Successors

  	
   

  	
  27

  
	
   

  	
   

  	
   

  	
   

  
	
  30.

  	
  Benefits
  of This Agreement

  	
   

  	
  27

  
	
   

  	
   

  	
   

  	
   

  
	
  31.

  	
  Severability

  	
   

  	
  27

  
	
   

  	
   

  	
   

  	
   

  
	
  32.

  	
  Governing
  Law

  	
   

  	
  27

  

 

i

 

TABLE OF
CONTENTS

(continued)

 

	
   

  	
   

  	
   

  	
  Page

  
	
   

  	
   

  	
   

  	
   

  
	
  33.

  	
  Counterparts

  	
   

  	
  27

  
	
   

  	
   

  	
   

  	
   

  
	
  34.

  	
  Descriptive
  Headings

  	
   

  	
  27

  
	
   

  	
   

  	
   

  	
   

  
	
  35.

  	
  Force
  Majeure

  	
   

  	
  27

  

 

	
  EXHIBIT A

  	
  Form of Certificate
  of Designation

  	
   

  	
  A-1

  
	
   

  	
   

  	
   

  	
   

  
	
  EXHIBIT B

  	
  Form of Rights Certificate

  	
   

  	
  B-1

  
	
   

  	
   

  	
   

  	
   

  
	
  EXHIBIT C

  	
  Summary of Rights

  	
   

  	
  C-1

  

 

ii

 

AMENDED AND RESTATED RIGHTS
AGREEMENT

 

THIS AMENDED AND RESTATED RIGHTS AGREEMENT,
dated as of June 15, 2009, by and between SIMPSON MANUFACTURING CO., INC.,
a Delaware corporation (the “Company”), and COMPUTERSHARE TRUST COMPANY, N.A.,
a national banking association (the “Rights Agent”), amends and restates that
certain Rights Agreement dated July 30, 1999 (the “Original Agreement”),
between the Company and BankBoston, N.A., a national banking association and
predecessor rights agent to the Rights Agent,

 

W I T N E S
S E T H:

 

Whereas, on July 29, 1999, the Board of
Directors of the Company authorized and declared a dividend distribution of one
Right (as hereinafter defined) for each share of Common Stock, $0.01 par value
per share, of the Company (the “Common Stock”) outstanding as of the close of
business on August 19, 1999 (the “Record Date”), and contemplates the
issuance of one Right (subject to adjustment as provided herein) for each share
of Common Stock of the Company issued between the Record Date and the earlier
of the Distribution Date and the Expiration Date (as such terms are hereinafter
defined in Section 3(a) and Section 7(a), respectively) (with
Rights also to be issued in connection with certain issuances of Common Stock
after the Distribution Date, as provided more fully herein), each Right
representing the right to purchase when exercisable one one-thousandth of a
share of Series A Participating Preferred Stock, $0.01 par value per
share, of the Company (“Preferred Stock”) having the rights, powers and
preferences set forth in the Certificate of Designation attached hereto as Exhibit A,
upon the terms and subject to the conditions hereinafter set forth (the “Rights”);
and

 

Whereas, pursuant to the Original Agreement
the Rights would have expired at the Close of Business on July 29, 2009;
and

 

Whereas, BankBoston, N.A., was succeeded as
Rights Agent under the Original Agreement by Fleet National Bank, which was in
turn succeeded as Rights Agent by EquiServe Trust Company, N.A., which is now
known as Computershare Trust Company, N.A., a national banking association (the
“Rights Agent”); and

 

Whereas, the Board of Directors of the
Company has determined to extend the Final Expiration Date (as such term is
hereinafter defined) and to make certain other changes in the Original
Agreement and, in connection therewith, hereby to amend and restate the
Original Agreement in its entirety as herein set forth:

 

Now, Therefore, in consideration of the
promises and the mutual agreements herein set forth, the parties hereto hereby
amend and restate the Original Agreement in its entirety and agree as follows:

 

1.                                       Certain
Definitions.  For
purposes of this Agreement, the following terms have the meanings indicated:

 

(a)                                  “Acquiring
Person” shall mean any Person (as such term is hereinafter defined) who or
which, together with all Affiliates (as such term is hereinafter defined) and
Associates (as such term is hereinafter defined) of such Person, without the
prior approval of the Company, shall have become the Beneficial Owner (as such
term is hereinafter defined) of securities representing 15% or more of the
shares of Common Stock then outstanding or who was such a Beneficial Owner at
any time on or after the July 30, 1999, whether or not such Person
continues to be the Beneficial Owner of securities representing 15% or more of
the outstanding shares of Common Stock; provided, however, that in no event
shall a 

 

1

 

Person
who or which, together with all Affiliates and Associates of such Person, is
the Beneficial Owner of less than 15% of the Company’s outstanding shares of
Common Stock become an Acquiring Person solely as a result of a reduction of
the number of shares of outstanding Common Stock, including repurchases of
outstanding shares of Common Stock by the Company, which reduction increases the
percentage of outstanding shares of Common Stock Beneficially Owned by such
Person (provided that any subsequent increase in the amount of Common Stock
Beneficially Owned by such Person, together with all Affiliates and Associates
of such Person, without the prior approval of the Board of Directors of the
Company shall cause such Person to be an Acquiring Person); and provided,
further, that “Acquiring Person” shall not mean (i) the Company, (ii) any
subsidiary of the Company (as such term is hereinafter defined), (iii) any
employee benefit plan of the Company or any of its subsidiaries, (iv) any
entity holding securities of the Company organized, appointed or established by
the Company or any of its subsidiaries for or pursuant to the terms of any such
plan, or (v) any Person who as of the Record Date (a) was the
Beneficial Owner of 25% or more of the shares of Common Stock then outstanding
(an “Exempt Person”), (b) is any Person who is an Affiliate or Associate
of an Exempt Person, (c) is any Person who acquires Beneficial Ownership
of shares of Common Stock from an Exempt Person by will or the laws of
intestate succession or (d) is any Person who is a trustee, executor or
administrator of the estate of an Exempt Person at any time during the period
commencing with the death of such Exempt Person and ending with the date when
all shares owned by such estate shall have been distributed; provided that any
Exempt Person who shall become Beneficial Owner of 40% or more of the shares of
Common Stock then outstanding shall become an Acquiring Person; provided,
however, that in no event shall any Exempt Person become an Acquiring Person
solely as a result of a reduction of the number of shares of Common Stock
outstanding, including repurchases of outstanding shares of Common Stock by the
Company, which reduction increases the percentage of outstanding shares of
Common Stock Beneficially Owned by such Exempt Person.

 

(b)                                 “Affiliate” and
“Associate” shall have the respective meanings ascribed to such terms in Rule 12b-2
of the General Rules and Regulations under the Securities Exchange Act of
1934, as amended (the “Exchange Act”), as in effect on June 15, 2009.

 

(c)                                  “Approval of”
or “approved by” the Company shall mean the affirmative vote of a majority of a
quorum of the Board of Directors.

 

(d)                                 A Person shall
be deemed the “Beneficial Owner” of, and shall be deemed to “Beneficially Own,”
any securities:

 

(i)                                     that such Person or any of
such Person’s Affiliates or Associates beneficially owns directly or
indirectly;

 

(ii)                                  that such Person or any of
such Person’s Affiliates or Associates has (A) the right or obligation to
acquire (whether such right or obligation is exercisable or effective
immediately or only after the passage of time) pursuant to any agreement,
arrangement or understanding (whether or not in writing and other than
customary agreements with and between underwriters and selling group members
with respect to a bona fide public offering of securities) or upon the exercise
of conversion rights, exchange rights, rights (other than the Rights), warrants
or options, or otherwise; provided, however, that a Person shall not be deemed
the “Beneficial Owner” of, or to “Beneficially Own,” securities tendered
pursuant to a tender or exchange offer made by such Person or any of such
Person’s Affiliates or Associates until such tendered securities are accepted
for payment or exchange; or (B) the right to vote pursuant to any
agreement arrangement or understanding (whether or not in writing); provided,
however, that a Person shall not be deemed the “Beneficial Owner” of or to “Beneficially
Own,” any 

 

2

 

security under this clause (B) if
the agreement, arrangement or understanding to vote such security (1) arises
solely from a revocable proxy given in response to a public proxy or consent
solicitation made pursuant to, and in accordance with, the applicable rules and
regulations of the Exchange Act and (2) is not also then reportable by
such Person on Schedule l3D under the Exchange Act (or any comparable or
successor report);

 

(iii)                               that are Beneficially Owned,
directly or indirectly, by any other Person (or any Affiliate or Associate
thereof) with which such Person or any of such Person’s Affiliates or
Associates has any agreement, arrangement or understanding (whether or not in
writing and other than customary agreements with and between underwriters and
selling group members with respect to a bona fide public offering of
securities), or with which such Person or any of such Person’s Affiliates have
otherwise formed a group, for the purpose of acquiring, holding, voting (except
pursuant to a revocable proxy as described in clause (B) of Section 1(d)(ii) above)
or disposing of any securities of the Company; or

 

(iv)                              that are the subject of a
derivative transaction entered into by such Person or any of such Person’s
Affiliates or Associates, or derivative securities acquired by such Person or
any of such Person’s Affiliates or Associates, which gives such Person or any
of such Person’s Affiliates or Associates the economic equivalent of ownership
of an amount of such securities due to the fact that the value of the
derivative is explicitly determined by reference to the price or value of such
securities, or which provides such Person or any of such Person’s Affiliates or
Associates an opportunity, directly or indirectly, to profit, or to share in
any profit, derived from any change in the value of such securities, in any
case without regard to whether (A) such derivative conveys any voting
rights in such securities to such Person or any of such Person’s Affiliates or
Associates, (B) the derivative is required to be, or capable of being,
settled through delivery of such securities, or (C) such Person or any of
such Person’s Affiliates or Associates may have entered into other transactions
that hedge the economic effect of such derivative.  In determining the number of shares of Common
Stock of the Company Beneficially Owned by virtue of the operation of this Section 1(d)(iv),
the subject Person shall be deemed to Beneficially Own (without duplication)
the notional or other number of shares of Common Stock of the Company specified
in the documentation evidencing the derivative position as being subject to
being acquired on the exercise or settlement of the applicable right or as the
basis on which the value or settlement amount of such right, or the opportunity
of the holder of such right to profit or share in any profit, is to be
calculated, as a whole or in part, and in any case (or if no such number of
shares of Common Stock of the Company is specified in such documentation or
otherwise), as determined by the Board of Directors of the Company in good
faith to be the number of shares of Common Stock of the Company to which the
derivative position relates.

 

(e)                                  “Board of
Directors of the Company,” “Board of Directors” or “Board” shall mean the Board
of Directors of the Company as constituted at the time in question.

 

(f)                                    “Business Day”
shall mean any day other than a Saturday, Sunday, or a day on which banking
institutions in the Commonwealth of Massachusetts are authorized or obligated
by law or executive order to close.

 

(g)                                 “Close of
Business” on any given date shall mean 5 P.M., Eastern time, on such date;
provided, however, that if such date is not a Business Day it shall mean 5 P.M.,
Eastern time, on the next Business Day.

 

3

 

(h)                                 “Common Stock”
shall mean the Common Stock, $0.01 par value per share, of the Company, except
that “Common Stock” when used with reference to stock issued by any Person
other than the Company shall mean the capital stock with the greatest Voting
Power (as such term is hereinafter defined), or the equity securities or other
equity interest having power to control or direct the management, of such
Person or, if such Person is a subsidiary of another Person, of the Person that
ultimately controls such first-mentioned Person and that has issued and
outstanding such capital stock, equity securities or equity interests.

 

(i)                                     “Person” shall
mean any natural person or any firm, corporation, partnership, limited
liability company, joint venture, association, trust or other entity.

 

(j)                                     “Preferred
Stock” shall mean the Series A Participating Preferred Stock, $0.01 par
value per share, of the Company.

 

(k)                                  “Stock
Acquisition Date” shall mean the first date of public announcement by the
Company or an Acquiring Person that an Acquiring Person has become such.

 

(l)                                     A “subsidiary”
of any Person shall mean any corporation or other entity of which a majority of
the Voting Power of the voting equity securities or voting interests is owned,
directly or indirectly by such Person, or which is otherwise controlled by such
Person.

 

(m)                               “Voting Power”
of a Person shall mean the voting power of all securities of such Person then
outstanding and generally entitled to vote for the election of directors of
such Person.

 

2.                                       Appointment of
Rights Agent.  The Company
has appointed the Rights Agent to act as agent for the Company in accordance
with the terms and conditions hereof, and the Rights Agent hereby confirms its
acceptance of such appointment.  The
Company may from time to time appoint such Co-Rights Agents as it may deem
necessary or desirable, upon ten (10) days’ prior written notice to the Rights
Agent.  In the event the Company appoints
one or more Co-Rights Agents, the respective duties of the Rights Agent and any
Co-Rights Agents shall be as the Company shall determine.  The Rights Agent shall have no duty to
supervise, and in no event shall be liable for, the acts or omissions of any
such Co-Rights Agent.

 

3.                                       Issue of Rights
Certificates.

 

(a)                                  Until the
earlier of

 

(i)                                     10 days
following the Stock Acquisition Date and

 

(ii)                                  10 days
following (unless such date is extended by the Board of Directors) the
commencement (or first public announcement of an intention to commence, which
intention to commence remains in effect for five Business Days after such
announcement) of a tender or exchange offer without the prior approval of the
Company, which would result, in the absence of approval by the Company, in any
Person (other than the Company, any subsidiary of the Company, or any employee
benefit plan of the Company or any of its subsidiaries, or any entity holding
securities of the Company organized, appointed or established by the Company or
any of its subsidiaries for or pursuant to the terms of any such plan) becoming
an Acquiring Person (including any such date on or after July 30, 1999,
and prior to the issuance of the Rights) (the earlier of such dates being
herein referred to as the “Distribution Date”):

 

4

 

(x) the Rights shall be evidenced
(subject to the provisions of Section 3(b)) by the certificates for Common
Stock registered in the names of the holders of the Common Stock (which
certificates for Common Stock shall be deemed also to be certificates for
Rights) and not by separate certificates, and (y) the Rights (and the
right to receive certificates therefor) shall be transferable only in connection
with the transfer of the underlying shares of Common Stock.  As soon as practicable after the Distribution
Date, the Rights Agent shall send by first-class, insured, postage prepaid
mail, to each record holder of the Common Stock as of the Close of Business on
the Distribution Date, at the address of such holder shown on the records of
the Company, a certificate for Rights, in substantially the form of Exhibit B
hereto (the “Rights Certificates”), evidencing one Right (subject to adjustment
as provided in Section 11 hereof) for each share of Common Stock so
held.  As of and after the Distribution
Date, the Rights shall be evidenced solely by such Rights Certificates.

 

Following the Record Date, the Company sent a
copy of a Summary of Rights, in substantially the form attached hereto as Exhibit C
(the “Summary of Rights”), by first-class, postage prepaid mail, to each record
holder of the Common Stock as of the Close of Business on the Record Date, at
the address of such holder shown on the records of the Company.  With respect to certificates for the Common
Stock outstanding as of the Record Date, until the Distribution Date (or
earlier redemption, expiration or termination of the Rights), the Rights shall
be evidenced by such certificates for the Common Stock together with the
Summary of Rights and the registered holders of the Common Stock shall also be
the registered holders of the associated Rights.  Until the Distribution Date (or earlier
redemption, expiration or termination of the Rights), the surrender for
transfer of any of the certificates for the Common Stock outstanding on the
Record Date, even without a copy of the Summary of Rights attached thereto,
shall also constitute the transfer of the Rights associated with the Common
Stock represented by such certificate.

 

(b)                                 Certificates
issued for Common Stock (including, without limitation, certificates issued
upon transfer or exchange of Common Stock) after the Record Date, but prior to
the earlier of the Distribution Date or the Expiration Date (as such term is
hereinafter defined), shall be deemed also to be certificates for Rights, and
shall have impressed, printed, stamped, written or otherwise affixed onto them
a legend in substantially the following form:

 

This
Certificate also evidences and entitles the holder hereof to certain Rights as
set forth in an Amended and Restated Rights Agreement between Simpson
Manufacturing Co., Inc. and Computershare Trust Company, N.A., as Rights
Agent, originally dated as of July 30, 1999, and amended and restated as
of June 15, 2009, as heretofore amended and as it may be amended from time
to time hereafter (the “Rights Agreement”), the terms of which are hereby
incorporated herein by reference and a copy of which is on file at the
principal offices of Simpson Manufacturing Co., Inc.  Under certain circumstances, as set forth in
the Rights Agreement, such Rights may be redeemed, may expire, or may be
evidenced by separate Certificates and will no longer be evidenced by this
Certificate.  Simpson Manufacturing Co., Inc.
will mail to the holder of this Certificate a copy of the Rights Agreement
without charge within five days after receipt of a written request
therefor.  Under certain circumstances,
Rights issued to Acquiring Persons (as defined in the Rights Agreement) or
certain related Persons and any subsequent holder of such Rights may become
null and void.

 

With respect to such
certificates containing such legend, until the Distribution Date (or earlier
redemption, expiration or termination of the Rights), the Rights associated
with the Common Stock represented by such certificates shall be evidenced by
such certificates alone, and the surrender for transfer of any of such
certificates shall also constitute the transfer of the Rights associated with
the Common Stock represented by such certificates.

 

5

 

4.                                       Form of
Rights Certificates.

 

(a)                                  The Rights
Certificates (and the forms of election to purchase Preferred Stock and of
assignment and certificates to be printed on the reverse thereof) shall each be
in substantially the form set forth in Exhibit B hereto and may have such
marks of identification or designation and such legends, summaries or
endorsements printed thereon as the Company and the Rights Agent may deem
appropriate and as are not inconsistent with the provisions of this Agreement,
or as may be required to comply with any applicable law or with any rule or
regulation made pursuant thereto or with any rule or regulation of any
stock exchange or interdealer quotation system on which the Rights may from
time to time be listed or traded, or to conform to usage.  Subject to the provisions of Section 11
and Section 23 hereof, the Rights Certificates on their face shall entitle
the holders thereof to purchase such numbers of one one-thousandths of a share
of Preferred Stock as shall be set forth therein at the price per one
one-thousandth of a share set forth therein (the “Purchase Price”), but the
numbers of such shares and the Purchase Price shall be subject to adjustment as
provided herein.

 

(b)                                 Any Rights
Certificate issued pursuant to Section 3(a) hereof that represents
Rights Beneficially Owned by an Acquiring Person or any Associate or Affiliate
thereof and any Rights Certificate issued at any time upon the transfer of any
Rights to such an Acquiring Person or any Associate or Affiliate thereof or to
any nominee of such Acquiring Person, Associate or Affiliate, and any Rights
Certificate issued pursuant to Section 6, Section 11 or Section 23
upon transfer, exchange, replacement or adjustment of any other Rights
Certificate referred to in this sentence, shall contain, to the extent the
Rights Agent has appropriate notice, the following legend:

 

The
Rights represented by this Rights Certificate were issued to a Person who was
an Acquiring Person or an Affiliate or an Associate of an Acquiring
Person.  This Rights Certificate and the
Rights represented hereby may become void under the circumstances specified in Section 7(e) of
the Rights Agreement.

 

The provisions of Section 7(e) of
this Agreement shall be operative whether or not the foregoing legend is
contained on any such Rights Certificate.

 

5.                                       Countersignature
and Registration.  The Rights
Certificates shall be executed on behalf of the Company by its Chairman of the
Board, its Chief Executive Officer, or its Chief Financial Officer, either
manually or by facsimile signature, and shall have affixed thereto the Company’s
seal or a facsimile thereof, which shall be attested by the Secretary of the
Company, either manually or by facsimile signature.  The Rights Certificates shall be
countersigned by the Rights Agent, either manually or by facsimile signature,
and shall not be valid for any purpose unless so countersigned.  In case any officer of the Company who shall
have signed any of the Rights Certificates shall cease to be such officer of
the Company before countersignature by the Rights Agent and issuance and
delivery by the Company, such Rights Certificates, nevertheless, may be
countersigned by the Rights Agent, and issued and delivered by the Company with
the same force and effect as though the Person who signed such Rights
Certificates had not ceased to be such officer of the Company; and any Rights
Certificates may be signed on behalf of the Company by any Person who, at the
actual date of the execution of such Rights Certificates, shall be a proper
officer of the Company to sign such Rights Certificates, although at the date
of the execution of this Agreement or the Original Agreement any such Person was
not such an officer.

 

Following the Distribution Date, the Rights
Agent will keep or cause to be kept, at its office designated for such purpose
at such location or locations as the secretary of the Company shall agree upon
from time to time with the Rights Agent, all in compliance with the New York
Stock Exchange, Inc., books for registration and transfer of the Rights
Certificates issued hereunder.  Such
books shall 

 

6

 

show the names and addresses
of the respective holders of the Rights Certificates, the number of Rights
evidenced on its face by each of the Rights Certificates and the date of each
of the Rights Certificates.

 

6.                                       Transfer, Split
Up, Combination and Exchange of Rights Certificates; Mutilated, Destroyed, Lost
or Stolen Rights Certificates.  Subject to the provisions of Sections 4(b),
7(e), 7(f) and 15 hereof, at any time after the Close of Business on the
Distribution Date, and at or prior to the Close of Business on the Expiration
Date, any Rights Certificate or Rights Certificates may be transferred, split
up, combined or exchanged for another Rights Certificate or Rights
Certificates, entitling the registered holder to purchase a like number of
shares of Preferred Stock as the Rights Certificate or Rights Certificates
surrendered then entitled such holder to purchase.  Any registered holder desiring to transfer,
split up, combine or exchange any Rights Certificate shall make such request in
writing delivered to the Rights Agent, and shall surrender the Rights
Certificate or Rights Certificates to be transferred, split up, combined or
exchanged at the principal office of the Rights Agent.  Thereupon the Rights Agent shall countersign
and deliver to the Person entitled thereto a Rights Certificate or Rights
Certificates, as the case may be, as so requested.  The Company may require payment of a sum
sufficient to cover any tax or governmental charge that may be imposed in
connection with any transfer, split up, combination or exchange of Rights
Certificates.

 

Subject to the provisions of Sections 4(b),
7(e), 7(f) and 15 hereof, upon receipt by the Company and the Rights Agent
of evidence reasonably satisfactory to them of the loss, theft, destruction or
mutilation of a Rights Certificate and such additional evidence of the identity
of the Beneficial Owner (or former Beneficial Owner) or Affiliates or
Associates thereof as the Company shall reasonably request, and, in case of
loss, theft or destruction, of indemnity or security satisfactory to them, and
if requested by the Company or the Rights Agent, reimbursement to the Company
and the Rights Agent of all reasonable expenses incidental thereto, and upon
surrender to the Rights Agent and cancellation of the Rights Certificate if
mutilated, the Company shall execute and deliver a new Rights Certificate of
like tenor to the Rights Agent for countersignature and delivery to the
registered owner in lieu of the Rights Certificate so lost, stolen, destroyed
or mutilated.

 

7.                                       Exercise of
Rights; Purchase Price; Expiration Date of Rights.

 

(a)                                  The registered
holder of any Rights Certificate may exercise the Rights evidenced thereby
(except as otherwise provided herein) as a whole or in part at any time after
the Distribution Date upon presentation of the Rights Certificate, with the
appropriate form of election to purchase on the reverse side thereof duly
executed, to the Rights Agent at the office of the Rights Agent designated for
such purpose, together with payment of the Purchase Price for each one one-thousandth
of a share of Preferred Stock (or such other number of shares or other
securities) as to which the Rights are exercised, at or prior to the earliest
of (i) the Close of Business on June 14, 2019 (the “Final Expiration
Date”), (ii) the time at which the Rights are redeemed as provided in Section 24
hereof, and (iii) the time at which the Rights are exchanged as provided
in Section 24(c) hereof (such earliest time being herein referred to
as the “Expiration Date”). 
Notwithstanding any other provision of this Agreement to the contrary,
any Person who prior to the Distribution Date becomes a record holder of shares
of Common Stock may exercise all of the rights of a registered holder of a
Rights Certificate with respect to the Rights associated with such shares of
Common Stock in accordance with and subject to the provisions of this
Agreement, including the provisions of Section 7(e) hereof, as of the
date such Person becomes a record holder of shares of Common Stock.

 

(b)                                 The Purchase
Price for each one one-thousandth share of Preferred Stock issuable upon
exercise of a Right shall initially be $100, but shall be subject to adjustment
from time to time as provided in Sections 11 and 13 hereof and shall be payable
in lawful money of the United States of America in accordance with Section 7(c) below.

 

7

 

(c)           Upon receipt of a
Rights Certificate representing exercisable Rights, with the appropriate form
of election to purchase duly executed, accompanied by payment of the Purchase
Price for the shares (or other securities or property) to be purchased and an
amount equal to any applicable transfer tax in cash, or by certified check or
bank draft payable to the order of the Company, the Rights Agent shall, subject
to Section 21(k), thereupon promptly (i)(A) requisition from any
transfer agent of the shares of Preferred Stock (or make available, if the
Rights Agent is the transfer agent) certificates for the number of shares of
Preferred Stock to be purchased, and the Company hereby irrevocably authorizes
its transfer agent to comply with all such requests, or (B) if the
Company, in its sole discretion, shall have elected to deposit the shares of
Preferred Stock issuable upon exercise of the Rights hereunder into a
depositary, requisition from the depositary agent depositary receipts
representing such number of one one-thousandths of a share of Preferred Stock
as are to be purchased (in which case certificates for the shares of Preferred
Stock represented by such receipts shall be deposited by the transfer agent
with the depositary agent) and the Company shall direct the depositary agent to
comply with such request, (ii) when appropriate, requisition from the
Company the amount of cash, if any, to be paid in lieu of issuance of
fractional shares in accordance with Section 15, (iii) promptly after
receipt of such certificates or depositary receipts, cause the same to be
delivered to or upon the order of the registered holder of such Rights
Certificate, registered in such name or names as may be designated by such
holder and (iv) when appropriate, after receipt promptly deliver such cash
to or upon the order of the registered holder of such Rights Certificate.  In the event that the Company is obligated to
issue other securities of the Company, and/or distribute other property pursuant
to Section 11(a), the Company shall make all arrangements necessary so
that such other securities and/or property are available for distribution by
the Rights Agent, if and when appropriate. 
In addition, in the case of an exercise of the Rights by a holder
pursuant to Section 11(a)(ii), the Rights Agent shall return such Rights
Certificate to the registered holder thereof after imprinting, stamping or
otherwise indicating thereon that the rights represented by such Rights
Certificate no longer include the rights provided by Section 11(a)(ii) of
this Agreement and if less than all the Rights represented by such Rights
Certificate were so exercised, the Rights Agent shall indicate on the Rights
Certificate the number of Rights represented thereby that continue to include
the rights provided by Section 11(a)(ii).

 

(d)           In case the
registered holder of any Rights Certificate shall exercise (except pursuant to Section 11(a)(ii))
less than all the Rights evidenced thereby, a new Rights Certificate evidencing
Rights equivalent to the Rights remaining unexercised shall be issued by the
Rights Agent and delivered to the registered holder of such Rights Certificate
or to his duly authorized assigns, subject to the provisions of Section 15
hereof.

 

(e)           Notwithstanding
anything in this Agreement to the contrary, if there occurs any of the events
set forth in Section 11(a)(ii) or Section 13(a), then any Rights
that are or were on or after the Distribution Date Beneficially Owned by an
Acquiring Person or any Associate or Affiliate of an Acquiring Person shall
become null and void, without any further action, and any holder of such Rights
shall thereafter have no rights whatsoever with respect to such Rights, whether
under any provision of this Agreement or otherwise.  Without limiting the foregoing sentence,
Rights held by the following Persons shall be null and void without any further
action:  (i) any direct or indirect
transferee of any Rights that are or were on or after the Distribution Date
Beneficially Owned by an Acquiring Person or any Associate or Affiliate of an
Acquiring Person; (ii) any direct or indirect transferee of any Rights
that were on or before the Distribution Date Beneficially Owned by an Acquiring
Person or any Associate or Affiliate of an Acquiring Person if the transferee
received such Rights, directly or indirectly, (A) from an Acquiring Person
or any Associate or Affiliate of an Acquiring Person (x) as a result of a
distribution by such Acquiring Person or any Associate or Affiliate of an
Acquiring Person to holders of its equity securities or similar interests
(including, without limitation, partnership interests) or (y) pursuant to
any continuing agreement, arrangement or understanding with respect to the
Rights, or (B) in a transfer (or series of transfers) that the Board of
Directors of the Company determines is part of a plan, arrangement or 

 

8

 

understanding
that has the purpose or effect of avoiding the provisions of this Section 7(e);
and (iii) subsequent transferees of Persons referred to in the foregoing
clauses (i) and (ii) as well as this clause (iii).  The Company shall use all reasonable efforts
to ensure that the provisions of this Section 7(e) are complied with,
but neither the Company nor the Rights Agent shall have any liability to any
holder of Rights or any Rights Certificate or to any other Person as a result
of the Company’s failure to make any determination with respect to an Acquiring
Person or its Affiliates or Associates or any of such transferees hereunder.

 

(f)            Notwithstanding
anything in this Agreement to the contrary, neither the Rights Agent nor the
Company shall be obligated to undertake any action with respect to a registered
holder upon the occurrence of any purported exercise as set forth in this Section 7
unless the certificate contained in the appropriate form of election to
purchase set forth on the reverse side of the Rights Certificate surrendered
for such exercise shall have been properly completed and duly executed by the
registered holder thereof and the Company and the Rights Agent shall have been
provided with such additional evidence of the identity of the Beneficial Owner
(or former Beneficial Owner) or Affiliates or Associates thereof as the Company
and the Rights Agent shall reasonably request.

 

8.             Cancellation and
Destruction of Rights Certificates. 
All Rights Certificates surrendered for the purpose of exercise,
transfer, split up, combination or exchange shall, if surrendered to the
Company or any of its agents, be delivered to the Rights Agent for cancellation
or in canceled form, or, if surrendered to the Rights Agent, shall be canceled
by it, and no Rights Certificates shall be issued in lieu thereof except as
expressly permitted by any of the provisions of this Agreement.  The Company shall deliver to the Rights Agent
for cancellation and retirement, and the Rights Agent shall so cancel and
retire, any other Rights Certificate purchased or acquired by the Company
otherwise than upon the exercise thereof. 
The Rights Agent shall deliver all canceled Rights Certificates to the
Company, or shall, at the written request of the Company, destroy such canceled
Rights Certificates, and in such case shall deliver a certificate of
destruction thereof to the Company.

 

9.             Reservation and
Availability of Preferred Stock.  The
Company covenants and agrees that it shall cause to be reserved and kept
available out of its authorized and unissued shares of Preferred Stock, or any
authorized and issued shares of Preferred Stock held in its treasury, the number
of shares of Preferred Stock that will be sufficient to permit the exercise in
full of all outstanding Rights and, after the occurrence of an event specified
in Section 11(a)(ii) or Section 13(a), shall so reserve and keep
available a sufficient number of shares of Common Stock (and/or other
securities) that may be required to permit the exercise in full of the Rights
pursuant to this Agreement.

 

So long as the shares of
Preferred Stock (and, after the occurrence of an event specified in Section 11(a)(ii) or
Section 13(a), any other securities) issuable upon the exercise of the
Rights may be listed on any national securities exchange or national quotation
system, the Company shall use its best efforts to cause, from and after such
time as the Rights become exercisable, all shares (or other securities)
reserved for such issuance to be listed on such exchange or system upon
official notice of issuance upon such exercise.

 

The Company covenants and
agrees that it shall take all such action as may be necessary to ensure that
all shares of Preferred Stock and/or other securities delivered upon exercise
of the Rights shall, at the time of delivery of the certificates for such
shares or other securities (subject to payment of the Purchase Price), be duly
and validly authorized and issued and fully paid and non-assessable shares or
securities.

 

The Company further
covenants and agrees that it shall pay when due and payable any and all federal
and state transfer taxes and charges that may be payable in respect of the
issuance or delivery of 

 

9

 

the
Rights Certificates or of any certificates for shares of Preferred Stock and/or
other securities upon the exercise of Rights. 
The Company shall not, however, be required to pay any transfer tax that
may be payable in respect of any transfer or delivery of Rights Certificates to
a Person other than, or in respect of the issuance or delivery of the shares of
Preferred Stock and/or other securities in a name other than that of, the
registered holder of the Rights Certificates evidencing Rights surrendered for
exercise or to issue or deliver any certificates for shares of Preferred Stock,
and/or other securities in a name other than that of the registered holder upon
the exercise of any Rights until such tax shall have been paid (any such tax
being payable by the holder of such Rights Certificate at the time of
surrender) or until it has been established to the Company’s satisfaction that
no such tax is due.

 

The Company shall use its
best efforts to (i) file, if required by law, as soon as practicable
following the Distribution Date, a registration statement under the Securities
Act of 1933, as amended (the “Act”), with respect to the securities purchasable
upon exercise of the Rights on an appropriate form, (ii) cause such
registration statement to become effective as soon as practicable after such
filing, and (iii) cause such registration statement to remain effective
(with a prospectus at all times meeting the requirements of the Act and the rules and
regulations thereunder) until the Expiration Date (unless and until the Company
shall have received an opinion of counsel to the effect that the maintenance of
such registration statement in effect is no longer necessary).  The Company will also take such action as may
be necessary and appropriate under the blue sky laws of the various states.

 

10.           Preferred Stock
Record Date.  Each Person in whose
name any certificate for shares of Preferred Stock (or other securities) is
issued upon the exercise of Rights shall for all purposes be deemed to have
become the holder of record of the shares of Preferred Stock (or other
securities) represented thereby on, and such certificate shall be dated, the
date upon which the Rights Certificate evidencing such Rights was duly
presented and payment of the Purchase Price (and any applicable transfer taxes)
was made; provided, however, that if the date of such presentation and payment
is a date upon which the Preferred Stock (or other securities) transfer books
of the Company are closed, such Person shall be deemed to have become the
record holder of such shares on, and such certificate shall be dated, the next
Business Day on which the Preferred Stock (or other securities) transfer books
of the Company are open.  Prior to the
exercise of the Rights evidenced thereby, the holder of a Rights Certificate,
as such, shall not be entitled to any rights of a stockholder of the Company
with respect to shares for which the Rights shall be exercisable, including,
without limitation, the right to vote, to receive dividends or other
distributions or to exercise any preemptive rights, and shall not be entitled
to receive any notice of any proceedings of the Company, except as provided
herein.

 

11.           Adjustment of
Purchase Price, Number and Kind of Shares or Number of Rights.  The Purchase Price, the number of shares
covered by each Right and the number of Rights outstanding are subject to
adjustment from time to time as provided in this Section 11.

 

(a)           (i)            In the event that the Company shall
at any time after July 30, 1999, (A) subdivide the outstanding
Preferred Stock, (B) combine the outstanding Preferred Stock into a
smaller number of shares or (C) issue any shares of its capital stock in a
reclassification of the Preferred Stock (including any such reclassification in
connection with a consolidation or merger in which the Company is the
continuing or surviving corporation), except as otherwise provided in this Section 11(a) and
in Section 7(e), the Purchase Price in effect at the time of the record
date for such dividend or of the effective date of such subdivision,
combination or reclassification, and the number and kind of shares of capital
stock issuable on such date, shall be proportionately adjusted so that the holder
of any Right exercised after such time shall be entitled to receive the
aggregate number and kind of shares of capital stock and other securities that,
if such Right had been exercised immediately prior to such date and at a time
when the Preferred Stock transfer books of the Company were open, such holder
would have owned upon such exercise and been entitled to receive by virtue of
such dividend, subdivision, combination or 

 

10

 

reclassification.  If an event occurs that would require an
adjustment under both Section 11(a)(i) and Section 11(a)(ii),
the adjustment provided for in this Section 11(a)(i) shall be in
addition to, and shall be made prior to, any adjustment required pursuant to Section 11(a)(ii).

 

(ii)           Subject to Section 24(c) of
this Agreement, in the event that any Person (other than the Company, any
subsidiary of the Company, any employee benefit plan of the Company or any of
its subsidiaries or any entity holding securities of the Company organized,
appointed or established by the Company or any of its subsidiaries for or
pursuant to the terms of any such plan), alone or together with its Affiliates
and Associates, shall become an Acquiring Person, then proper provision shall
be made so that each holder of a Right, except as provided in Section 7(e) hereof,
shall, for a period of 90 days after the later of the occurrence of any such
event and the effective date of an appropriate registration statement pursuant
to Section 9, have a right to receive upon exercise of each Right at the
then current Purchase Price in accordance with the terms of this Agreement,
such number of one one-thousandths of a share of Preferred Stock as shall equal
the result obtained by (x) multiplying the then current Purchase Price by
the then number of one one-thousandths of a share of Preferred Stock for which
a Right is then exercisable and (y) dividing that product by 50% of the
current market price per one share of Common Stock (determined pursuant to Section 11(b))
on the date of the occurrence of the event set forth in this Section 11(a)(ii) (such
number of shares being referred to as the “number of Adjustment Shares”);
provided, however, that if the transaction that would otherwise give rise to
the foregoing adjustment is also subject to the provisions of Section 13
hereof, then only the provisions of Section 13 hereof shall apply and no
adjustment shall be made pursuant to this Section 11(a)(ii); and provided,
further, that such 90-day period shall not be deemed to run during any period
in which the exercise of the Rights or the fulfillment by the Company or the
Rights Agent of its or their obligations under this Agreement shall be enjoined
or otherwise prohibited in full or in part by any court or other governmental
agency or body.

 

(iii)          In the event that there shall not be
sufficient treasury shares or authorized but unissued shares of Preferred Stock
to permit the exercise in full of the Rights in accordance with Section 11(a)(ii) and
the Rights become so exercisable, notwithstanding any other provision of this
Agreement, to the extent necessary and permitted by applicable law and any
agreements in effect on July 30, 1999, to which the Company is a party,
each Right shall thereafter represent the right to receive, upon exercise
thereof at the then current Purchase Price in accordance with the terms of this
Agreement, a number of shares, or units of shares, of (x) Common Stock (up
to the maximum number of shares of Common Stock that may permissibly be issued
using the allocation procedure specified in the second sentence of Section 11(g))
and (y) preferred stock (or other equity securities) of the Company,
including, but not limited to, Preferred Stock, equal in the aggregate to the
number of Adjustment Shares where the Board of Directors of the Company shall
have deemed such shares or units, other than the shares of Common Stock, to
have at least the same economic value and voting rights as the Common Stock (a “common
stock equivalent”) (one one-thousandth of a share of Preferred Stock shall be
deemed to be a common stock equivalent); provided, however, that, if there are
unavailable sufficient shares (or fractions of shares) of Common Stock and/or
common stock equivalents, then the Company shall take all such action as may be
necessary to authorize additional shares of Common Stock or common stock
equivalents for issuance upon exercise of the Rights, including the calling of
a meeting of stockholders; and provided, further, that the Company shall issue
no common stock equivalent upon exercise of the Rights (except for Preferred
Stock) until the Company has first issued all authorized and unreserved shares
of Common Stock; and provided, further, that if the Company is unable to cause
sufficient shares of Common Stock and/or common stock equivalents to be
available for issuance upon exercise in full of the Rights, then each Right
shall thereafter represent the right to receive the Adjusted Number of Common
Shares upon exercise at the Adjusted Purchase Price (as such terms are
hereinafter defined).  As used herein,
the term “Adjusted Number of Common Shares” shall be equal to that number of
shares (or fractions of shares) of Common Stock (and/or shares or units of
common stock equivalents) equal to the product of (x) the number of
Adjustment Shares and (y) a fraction, the numerator of which is the number
of shares of Common Stock 

 

11

 

(and/or shares or units of
common stock equivalents) available for issuance upon exercise of the Rights
and the denominator of which is the aggregate number of Adjustment Shares
otherwise issuable upon exercise in full of all Rights (assuming there were
sufficient shares of Common Stock available) (such fraction being referred to
as the “Proration Factor”).  The Adjusted
Purchase Price shall mean the product of the Purchase Price and the Proration
Factor.  The Board of Directors may, but
shall not be required to, establish procedures to allocate the right to receive
Common Stock and common stock equivalents upon exercise of the Rights among
holders of Rights.

 

(b)           (i)            For the purpose of any computation
hereunder, other than in Section 11(a)(iii), the “current market price”
per share of Common Stock on any date shall be deemed to be the average of the
daily closing prices per share of such Common Stock for the 30 consecutive
Trading Days (as such term is hereinafter defined) immediately prior to but not
including such date; provided, however, that in the event that the current per
share market price of the Common Stock is determined during a period following
the announcement by the issuer of such Common Stock of (A) a dividend or
distribution on such Common Stock payable in shares of such Common Stock or
securities convertible into shares of such Common Stock or (B) any
subdivision, combination or reclassification of such Common Stock, and prior to
the expiration of 30 Trading Days (as hereinafter defined) after but not
including the ex-dividend date for such dividend or distribution, or the record
date for such subdivision, combination or reclassification, then, and in each
such case, the “current market price” shall be properly adjusted to take into
account ex-dividend trading.  The closing
price for each day shall be the last sale price, regular way, or, in case no
such sale takes place on such day, the average of the closing bid and asked
prices, regular way, in either case as reported in the principal consolidated
transaction reporting system with respect to securities listed or admitted to
trading on the New York Stock Exchange or, if the shares of Common Stock are
not listed or admitted to trading on the New York Stock Exchange, as reported
in the principal consolidated transaction reporting system with respect to
securities listed on the principal national securities exchange on which the
shares of Common Stock are listed or admitted to trading or, if the shares of
Common Stock are not listed or admitted to trading on any national securities
exchange, the last quoted price or, if not so quoted, the average of the high
bid and low asked prices in the over-the-counter market, as reported by the
Over-the-Counter Bulletin Board or such other system then in use, or, if on any
such date the shares of Common Stock are not quoted by any such organization, the
average of the closing bid and asked prices as furnished by a professional
market maker making a market in the Common Stock selected by the Board of
Directors of the Company.  If on any such
date no market maker is making a market in the Common Stock, the fair value of
such shares on such date as determined reasonably and with good faith by the
Board of Directors of the Company shall be used and shall be binding on the
Rights Agent.  The term “Trading Day”
shall mean a day on which the principal national securities exchange on which
the shares of Common Stock are listed or admitted to trading is open for the
transaction of business or, if the shares of Common Stock are not listed or
admitted to trading on any national securities exchange, a Business Day.  If the Common Stock is not publicly held or
not so listed or traded, “current market price” per share shall mean the fair
value per share determined reasonably and with good faith to the holders of
Rights by the Board of Directors of the Company, whose determination shall be
described in a statement filed with the Rights Agent and shall be binding on
the Rights Agent.

 

(ii)           For the purpose of any computation
hereunder, the “current market price” per share (or one one-thousandth of a
share) of Preferred Stock shall be determined in the same manner as set forth
above for the Common Stock in Section 11(b) (other than the last
sentence thereof).  If the current market
price per share (or one one-thousandth of a share) of Preferred Stock cannot be
determined in the manner provided above or if the Preferred Stock is not
publicly held or listed or traded in a manner described in Section 11(b)(i),
the “current market price” per share of Preferred Stock shall be conclusively
deemed to be an amount equal to 1,000 (as such number may be appropriately
adjusted for such events as stock splits, stock dividends and recapitalizations
with respect to the Common Stock occurring after July 30, 1999) multiplied
by the current market price per share of the Common Stock and the “current
market 

 

12

 

price” per one
one-thousandth of a share of Preferred Stock shall be equal to the current
market price per share of the Common Stock (as appropriately adjusted).  If neither the Common Stock nor the Preferred
Stock is publicly held or so listed or traded, “current market price” per share
shall mean the fair value per share as determined in good faith by the Board of
Directors of the Company, whose determination shall be described in a statement
filed with the Rights Agent and shall be conclusive for all purposes.

 

(c)           Anything herein to
the contrary notwithstanding, no adjustment in the Purchase Price shall be
required unless such adjustment would require an increase or decrease of at
least 1% in the Purchase Price; provided, however, that any adjustments that,
by reason of this Section 11(c), are not required to be made shall be
carried forward and taken into account in any subsequent adjustment.  All calculations under this Section 11
shall be made to the nearest cent or to the nearest thousandth of a share of
Common Stock or other share or the nearest one-millionth of a share of
Preferred Stock, as the case may be. 
Notwithstanding the first sentence of this Section 11(c), any
adjustment required by this Section 11 shall be made no later than the
earlier of (i) three years from the date of the transaction that mandates
such adjustment and (ii) the Expiration Date.

 

(d)           If, as a result of
any provision of Section 11(a), the holder of any Right thereafter
exercised shall become entitled to receive any shares of capital stock of the
Company other than Preferred Stock, thereafter the number of such other shares
so receivable upon exercise of any Right shall be subject to adjustment from
time to time in a manner and on terms as nearly equivalent as practicable to
the provisions with respect to the shares contained in Section 11(a), and
the provisions of Sections 7, 9, 10, 13 and 15 hereof with respect to the
Preferred Stock shall apply on like terms to any such other shares.

 

(e)           All Rights
originally issued by the Company subsequent to any adjustment made to the
Purchase Price hereunder shall evidence the right to purchase, at the adjusted
Purchase Price, the number of shares of Preferred Stock purchasable from time
to time hereunder upon exercise of the Rights, all subject to further
adjustment as provided herein.

 

(f)            Irrespective of any
adjustment or change in the Purchase Price or the number of shares of Preferred
Stock issuable upon the exercise of the Rights, the Rights Certificates
theretofore and thereafter issued may continue to express the Purchase Price
per share and the number of shares that were expressed in the initial Rights
Certificates issued hereunder.

 

(g)           Before taking any
action that would cause an adjustment reducing the Purchase Price below the
then par value, if any, of the shares of Preferred Stock, Common Stock or other
securities issuable upon exercise of the Rights, the Company shall take any
corporate action that may, in the opinion of its counsel, be necessary in order
that the Company may validly and legally issue fully paid and non-assessable
shares of Preferred Stock, Common Stock or other securities at such adjusted
Purchase Price.  If upon any exercise of
the Rights, a holder is to receive a combination of Preferred Stock, Common
Stock and/or common stock equivalents, a portion of the consideration paid upon
such exercise, equal to at least the then par value of a share of Preferred
Stock and/or Common Stock of the Company, shall be allocated as the payment for
each share of Preferred Stock or Common Stock of the Company so received, as
the case may be.

 

(h)           In any case in which
this Section 11 shall require that an adjustment in the Purchase Price be
made effective as of a record date for a specified event, the Company may elect
to defer (with prompt notice thereof to the Rights Agent) until the occurrence
of such event the issuing to the holder of any Right exercised after such
record date the shares of Preferred Stock and other capital stock or securities
of the Company, if any, issuable upon such exercise over and above the shares
of Preferred Stock and other capital stock or securities of the Company, if
any, issuable upon such exercise on the basis of the Purchase Price in effect
prior to such adjustment; provided, however, that the Company shall deliver to 

 

13

 

such
holder a due bill or other appropriate instrument evidencing such holder’s
right to receive such additional shares upon the occurrence of the event
requiring such adjustment.

 

(i)            Anything to the
contrary in this Section 11 notwithstanding, the Company shall be entitled
to make such reductions in the Purchase Price, in addition to those adjustments
expressly required by this Section 11, as and to the extent that it in its
sole discretion shall determine to be advisable in order that any consolidation
or subdivision of the Preferred Stock, issuance wholly for cash of any shares
of Preferred Stock at less than the current market price, issuance wholly for
cash of shares of Preferred Stock or securities that by their terms are
convertible into or exchangeable for shares of Preferred Stock, stock dividends
or issuance of rights, options or warrants referred to hereinabove in this Section 11,
hereafter made by the Company to holders of its Preferred Stock shall not be
taxable to such stockholders.

 

(j)            Anything in this
Agreement to the contrary notwithstanding, in the event that the Company shall
at any time after July 30, 1999, and prior to the Distribution Date, (i) declare
a dividend on the outstanding shares of Common Stock payable in Common Stock, (ii) subdivide
the outstanding Common Stock, (iii) combine the outstanding Common Stock
into a smaller number of shares, or (iv) issue any shares of its capital
stock in a reclassification of the outstanding Common Stock:  then in any such case, (1) each share of
Common Stock (or shares of capital stock issued in such reclassification of the
shares of Common Stock) outstanding immediately following such time shall have
associated with it the number of Rights as were associated with one share of
Common Stock immediately prior to the occurrence of the event described in any
of clauses (i) through (iv) of this sentence; (2) the Purchase
Price in effect at the time of the record date for such dividend or the
effective date of such subdivision, combination or reclassification shall be
determined by multiplying the Purchase Price in effect immediately prior to
such time by a fraction, the numerator of which shall be the total number of
shares of Common Stock outstanding immediately prior to such event, and the
denominator of which shall be the total number of shares of Common Stock
outstanding immediately after such event; provided, however, that in no event
shall the consideration to be paid upon the exercise of one Right be less than
the aggregate par value of the shares of capital stock of the Company issuable
upon exercise of such Right; and (3) the number of one one-thousandths of
a share of Preferred Stock (or shares of such other capital stock) issuable
upon the exercise of each Right outstanding after such event shall equal the
number of one one-thousandths of a share of Preferred Stock (or shares of such
other capital stock) as were issuable with respect to one Right immediately
prior to such event.  Each share of
Common Stock that shall become outstanding after an adjustment has been made
pursuant to this Section 11(j) shall have associated with it the
number of Rights, exercisable at the Purchase Price and for the number of one
one-thousandths of a share of Preferred Stock (or shares of such other capital
stock) as one share of Common Stock has associated with it immediately
following the adjustment made pursuant to this Section 11(j).  If an event occurs that would require an
adjustment under both this Section 11(j) and Section 11(a)(ii) hereof,
the adjustment provided for in this Section 11(j) shall be in
addition to and shall be made prior to any adjustment required pursuant to Section 11(a)(ii) hereof.

 

(k)           The exercise of
Rights under Section 11(a)(ii) shall only result in the loss of
rights under Section 11(a)(ii) to the extent so exercised and shall
not otherwise affect the rights represented by the Rights under this Agreement,
including the rights represented by Section 13.

 

12.           Certificate of
Adjusted Purchase Price or Number of Shares.  Whenever an adjustment is made as provided in
Section 11 or 13 hereof, the Company shall (a) promptly prepare a
certificate setting forth such adjustment and a brief statement of the facts
and computations accounting for such adjustment, (b) promptly file with
the Rights Agent and with each transfer agent for the Preferred Stock and the
Common Stock a copy of such certificate and (c) mail a brief summary
thereof to each holder of a Rights Certificate in accordance with Section 26
hereof.  The Rights Agent shall be fully
protected in relying on any such certificate and on any adjustment therein
contained and shall not be deemed to have knowledge 

 

14

 

of
any adjustment unless and until it shall have received such certificate.  Notwithstanding the foregoing provisions of
this Section 12, the failure of the Company to make such certification or
give such notice shall not affect the validity of or the force or effect of the
requirement for such adjustment.

 

13.                                 Consolidation
Merger or Sale or Transfer of Assets or Earning Power.

 

(a)                                  In the event
that, following the Stock Acquisition Date, directly or indirectly,

 

(x) the Company shall consolidate with,
or merge with and into, any other Person,

 

(y) any Person shall consolidate with
the Company, or merge with and into the Company and the Company shall be the
continuing or surviving corporation of such merger (other than in the case of
either transaction described in (x) or (y), a merger or consolidation that
would result in all of the Voting Power represented by the securities of the
Company outstanding immediately prior thereto continuing to represent (either
by remaining outstanding or by being converted into securities of the surviving
entity) all of the Voting Power represented by the securities of the Company or
such surviving entity outstanding immediately after such merger or consolidation
and the holders of such securities not having changed as a result of such
merger or consolidation), or

 

(z) the Company shall sell, mortgage or
otherwise transfer (or one or more of its subsidiaries shall sell, mortgage or
otherwise transfer), in one or more transactions, assets or earning power
aggregating more than 50% of the assets or earning power of the Company and its
subsidiaries (taken as a whole) to any other Person,

 

then, and in each such case,
proper provision shall be made so that (i) following the Distribution
Date, each holder of a Right, except as provided in Section 7(e) hereof,
shall have the right to receive, upon the exercise thereof at the then current
Purchase Price in accordance with the terms of this Agreement, such number of
shares of freely tradable Common Stock of the Principal Party (as hereinafter
defined), free and clear of liens, rights of call or first refusal,
encumbrances or other adverse claims, as shall be equal to the result obtained
by (x) multiplying the then current Purchase Price by the number of one
one-thousandths of a share of Preferred Stock for which a Right is then
exercisable (without taking into account any adjustment previously made
pursuant to Section 11(a)(ii) hereof) and (y) dividing that
product by 50% of the current market price per share of the Common Stock of
such Principal Party (determined pursuant to Section 11(b) hereof) on
the date of consummation of such consolidation, merger, sale or transfer; (ii) such
Principal Party shall thereafter be liable for, and shall assume, by virtue of
such consolidation, merger, sale or transfer, all the obligations and duties of
the Company pursuant to this Agreement; (iii) the term “Company” shall
thereafter be deemed to refer to such Principal Party, it being specifically
intended that the provisions of Section 11 hereof shall apply to such
Principal Party; and (iv) such Principal Party shall take such steps
(including, but not limited to, the reservation of a sufficient number of
shares of its Common Stock in accordance with Section 9 hereof) in
connection with such consummation as may be necessary to assure that the
provisions hereof shall thereafter be applicable, as nearly as reasonably may
be, in relation to its shares of Common Stock thereafter deliverable upon the
exercise of the Rights.

 

(b)                                 “Principal
Party” shall mean:

 

(i)            in
the case of any transaction described in clause (x) or (y) of the
first sentence of Section 13(a), the Person that is the issuer of any
securities into which shares of Common Stock of the Company are converted in
such merger or consolidation, and if 

 

15

 

no securities are so issued, the Person that is the other party to the
merger or consolidation (including, if applicable, the Company, if it is the
surviving corporation); and

 

(ii)           in
the case of any transaction described in clause (z) of the first sentence
in Section 13(a), the Person that is the party receiving the greatest
portion of the assets or earning power transferred pursuant to such transaction
or transactions;

 

provided, however, that in
any such case, (1) if the Common Stock of such Person is not at such time
and has not been continuously over the preceding 12-month period registered
under Section 12 of the Exchange Act, and such Person is a direct or
indirect subsidiary or Affiliate of another Person, “Principal Party” shall
refer to such other Person; (2) in case such Person is a subsidiary,
directly or indirectly, or Affiliate of more than one Person, the Common Stocks
of two or more of which are and have been so registered, “Principal Party”
shall refer to whichever of such Persons is the issuer of the Common Stock
having the greatest aggregate market value; and (3) in case such Person is
owned, directly or indirectly, by a joint venture formed by two or more Persons
that are not owned, directly or indirectly, by the same Person, the rules set
forth in (1) and (2) above shall apply to each of the chains of
ownership having an interest in such joint venture as if such party were a “Subsidiary”
of both or all of such joint ventures and the Principal Parties in each such
chain shall bear the obligations set forth in this Section 13 in the same
ratio as their direct or indirect interests in such Person bear to the total of
such interests.

 

(c)                                  The Company
shall not consummate any such consolidation, merger, sale or transfer unless
the Principal Party shall have a sufficient number of authorized shares of its
Common Stock that have not been issued or reserved for issuance to permit the
exercise in full of the Rights in accordance with this Section 13 and
unless prior thereto the Company and each Principal Party and each other Person
who may become a Principal Party as a result of such consolidation, merger,
sale or transfer shall have executed and delivered to the Rights Agent a
supplemental agreement providing for the terms set forth in Sections 13(a) and
13(b) and further providing that, as soon as practicable after the date of
any consolidation, merger, sale or transfer of assets mentioned in Section 13(a),
the Principal Party at its own expense shall:

 

(i)            prepare
and file a registration statement under the Act with respect to the Rights and
the securities purchasable upon exercise of the Rights on an appropriate form,
will use its best efforts to cause such registration statement to become
effective as soon as practicable after such filing and will use its best
efforts to cause such registration statement to remain effective (with a
prospectus at all times meeting the requirements of the Act) until the
Expiration Date;

 

(ii)           use
its best efforts to (x) qualify or register the Rights and the securities
purchasable upon exercise of the Rights under the blue sky laws of such
jurisdictions as may be necessary and appropriate and (y) cause the Rights
and the securities purchasable upon exercise of the Rights to be listed on any
national securities exchange or national quotation system upon which its Common
Stock is listed, traded or quoted; and

 

(iii)          deliver
to holders of the Rights historical financial statements for the Principal
Party and each of its Affiliates that comply in all material respects with the
requirements for registration on Form 10 under the Exchange Act.

 

The provisions of this Section 13
shall similarly apply to successive mergers or consolidations or sales or other
transfers.  The rights under this Section 13
shall be in addition to the rights to exercise Rights and adjustments under Section 11(a)(ii) and
shall survive any exercise thereunder.

 

16

 

14.           Additional
Covenants.

 

(a)           The Company
covenants and agrees that after the Stock Acquisition Date, it shall not (i) consolidate
with, (ii) merge with or into, or (iii) sell or transfer to, in one
or more transactions, assets or earning power aggregating more than 50% of the
assets or earning power of the Company and its subsidiaries taken as a
whole:  any other Person if at the time
of or after such consolidation, merger or sale there are any charter or by-law
provisions or any rights, warrants or other instruments outstanding or any
other action taken that would diminish or otherwise eliminate any of the
benefits intended to be afforded by the Rights. 
The Company shall not consummate any such consolidation, merger or sale
unless prior thereto the Company and such other Person shall have executed and
delivered to the Rights Agent a supplemental agreement evidencing compliance
with this Section 14(a).

 

(b)           The Company
covenants and agrees that, after the Stock Acquisition Date, it will not,
except as permitted by Section 24 hereof, take any action the purpose or
effect of which is to diminish or otherwise eliminate any of the benefits
intended to be afforded by the Rights.

 

15.           Fractional
Rights and Fractional Shares.

 

(a)           The Company shall
not be required to issue fractions of Rights, except prior to the Distribution
Date as provided in Section 11(j), or to distribute Rights Certificates,
which evidence fractional Rights.  In
lieu of such fractional Rights, there shall be paid to the registered holders
of the Rights Certificates with regard to which such fractional Rights would
otherwise be issuable, an amount in cash equal to the same fraction of the
current market value of a whole Right.  For
the purposes of this Section 15(a), the current market value of a whole
Right shall be the closing price of the Rights for the Trading Day immediately
prior to the date on which such fractional Rights would have been otherwise
issuable.  The closing price of the
Rights for any day shall be the last sale price, regular way, or, in case no
such sale takes place on such day, the average of the closing bid and asked
prices, regular way, in either case as reported in the principal consolidated
transaction reporting system with respect to securities listed or admitted to
trading on the New York Stock Exchange or, if the shares of Common Stock are
not listed or admitted to trading on the New York Stock Exchange, as reported
in the principal consolidated transaction reporting system with respect to securities
listed on the principal national securities exchange on which the shares of
Common Stock are listed or admitted to trading or, if the shares of Common
Stock are not listed or admitted to trading on any national securities
exchange, the last quoted price or, if not so quoted, the average of the high
bid and low asked prices in the over-the-counter market, as reported by the
Over-the-Counter Bulletin Board or such other system then in use or, if on any
such date the Rights are not quoted by any such organization, the average of
the closing bid and asked prices as furnished by a professional market maker
making a market in the Rights selected by the Board of Directors of the
Company.  If on any such date no such market
maker is making a market in the Rights, the fair value of the Rights on such
date as determined reasonably and with good faith to the holders of Rights by
the Board of Directors of the Company shall be used and shall be binding on the
Rights Agent.

 

(b)           The Company shall
not be required to issue fractions of shares of Preferred Stock (other than
fractions that are integral multiples of one one-thousandth of a share of
Preferred Stock) upon exercise of the Rights or to distribute certificates that
evidence fractional shares of Preferred Stock (other than fractions that are
integral multiples of one one-thousandth of a share of Preferred Stock).  Fractions of shares of Preferred Stock in
integral multiples of one one-thousandth of a share of Preferred Stock may, at
the election of the Company, be evidenced by depositary receipts, pursuant to
an appropriate agreement between the Company and a depositary selected by it,
provided that such agreement shall provide that the holders of such depositary
receipts shall have all the rights, privileges and preferences to which they
are entitled as beneficial owners of the shares of Preferred Stock represented
by such depositary receipts.  In lieu of
fractional shares of Preferred Stock that are not integral multiples of one 

 

17

 

one-thousandth
of a share of Preferred Stock, the Company may pay to the registered holders of
Rights Certificates at the time such Rights are exercised as herein provided an
amount in cash equal to the same fraction of the current market value of one
one-thousandth of a share of Preferred Stock. 
For purposes of this Section 15(b), the current market value of one
one-thousandth of a share of Preferred Stock shall be one one-thousandth of the
closing price of a share of Preferred Stock (as determined pursuant to Section 11(b)(ii) hereof)
for the Trading Day immediately prior to the date of such exercise.

 

(c)           Following the
occurrence of one of the transactions or events specified in Section 11 or
Section 13 giving rise to the right to receive common stock equivalents
(other than Preferred Stock) or other securities upon the exercise of a Right,
the Company shall not be required to issue fractions of shares or units of such
common stock equivalents or other securities upon exercise of the Rights or to
distribute certificates that evidence fractional shares of such common stock
equivalents or other securities.  In lieu
of fractional shares or units of such common stock equivalents or other
securities, the Company may pay to the registered holders of Rights
Certificates at the time such Rights are exercised as herein provided an amount
in cash equal to the same fraction of the current market value of a share or
unit of such common stock equivalents or other securities.  For purposes of this Section 15(c), the
current market value shall be determined in the manner set forth in Section 11(b) hereof
for the Trading Day immediately prior to the date of such exercise and, if no
such common stock equivalent is traded, each such common stock equivalent shall
have the value of one one-thousandth of a share of Preferred Stock.

 

(d)           Except as otherwise
expressly provided herein, the holder of a Right by the acceptance of the
Rights expressly waives such holder’s right to receive any fractional Rights or
any fractional shares (other than, in the case of Preferred Stock, fractions
that are integral multiples of one one-thousandth of a share of Preferred
Stock) upon exercise of a Right.

 

16.           Rights of Action.  All rights of action in respect of this
Agreement, except those rights of action vested in the Rights Agent pursuant to
Section 21, are vested in the respective registered holders of the Rights
Certificates (and, prior to the Distribution Date, the registered holders of
the Common Stock); and any registered holder of any Rights Certificate (or,
prior to the Distribution Date, of the Common Stock), without the consent of
the Rights Agent or of the holder of any other Rights Certificate (or, prior to
the Distribution Date, of the Common Stock), may, in such holder’s own behalf
and for such holder’s own benefit, enforce, and may institute and maintain any
suit, action or proceeding against the Company to enforce, or otherwise act in
respect of, such holder’s right to exercise the Rights evidenced by such Rights
Certificate in the manner provided in such Rights Certificate and in this
Agreement.  Without limiting the
foregoing or any remedies available to the holders of Rights, it is
specifically acknowledged that the holders of Rights would not have an adequate
remedy at law for any breach of this Agreement and shall be entitled to
specific performance of the obligations hereunder and injunctive relief against
actual or threatened violations of the obligations hereunder of any Person
subject to this Agreement.  Holders of
Rights shall be entitled to recover from the Company the reasonable costs and
expenses, including attorneys’ fees, incurred by them in any action to enforce
the provisions of this Agreement.

 

17.           Agreement of
Rights Holders.  Every holder of a
Right by accepting the same consents and agrees with the Company and the Rights
Agent and with every other holder of a Right that:

 

(a)           prior to the
Distribution Date, the Rights will be transferable only in connection with the
transfer of Common Stock;

 

(b)           after the
Distribution Date, the Rights Certificates are transferable only on the
registry books of the Rights Agent if surrendered at the office of the Rights
Agent designated for such purpose duly endorsed or accompanied by a proper
instrument of transfer; and

 

18

 

(c)           the Company and
the Rights Agent may deem and treat the Person in whose name a Rights
Certificate (or, prior to the Distribution Date, the associated Common Stock
certificate) is registered as the absolute owner thereof and of the Rights
evidenced thereby (notwithstanding any notations of ownership or writing on the
Rights Certificates or the associated Common Stock certificate made by anyone
other than the Company or the Rights Agent) for all purposes whatsoever, and
neither the Company nor the Rights Agent shall be affected by any notice to the
contrary.

 

18.           Rights Certificate Holder
Not Deemed a Stockholder.  No
holder, as such, of any Rights Certificate shall be entitled to vote, receive
dividends or be deemed for any purpose the holder of the shares of Preferred
Stock, Common Stock or any other securities of the Company that may at any time
be issuable on the exercise of the Rights represented thereby, nor shall
anything contained herein or in any Rights Certificate be construed to confer
upon the holder of any Rights Certificate, as such, any of the rights of a
stockholder of the Company or any right to vote for the election of directors
or upon any matter submitted to stockholders at any meeting thereof, or to give
or withhold consent to any corporate action, or to receive notice of meetings
or other actions affecting stockholders (except as provided in Section 25
hereof), or to receive dividends or subscription rights, or otherwise, until
the Right or Rights evidenced by such Rights Certificate shall have been
exercised in accordance with the provisions thereof.

 

19.           Concerning the
Rights Agent.  The Company
agrees to pay to the Rights Agent reasonable compensation for all services
rendered by it hereunder and, from time to time, on demand of the Rights Agent,
its reasonable expenses and counsel fees and disbursements and other
disbursements incurred in the preparation, execution, delivery and amendment of
this Agreement and the exercise and performance of its duties hereunder.  The Company also agrees to indemnify the
Rights Agent for, and to hold it harmless against, any loss, liability,
damages, including consequential and special damages, judgment, fine, penalty,
claim, settlement, cost or expense, incurred without gross negligence, bad
faith or willful misconduct on the part of the Rights Agent, for any action
taken, suffered or omitted by the Rights Agent in connection with the
acceptance and administration of this Agreement, including the costs and
expenses of defending against any claim of liability arising therefrom,
directly or indirectly.

 

The Rights Agent shall be
authorized and protected and shall incur no liability for or in respect of any
action taken, suffered or omitted by it in connection with its acceptance and
administration of this Agreement in reliance upon any Rights Certificate or
certificate for Common Stock or for other securities of the Company, instrument
of assignment or transfer, power of attorney, endorsement, affidavit, letter,
notice, direction, consent, certificate, statement or other paper or document
believed by it to be genuine and to be signed, executed and, where necessary,
verified or acknowledged, by the proper Person or Persons.

 

20.           Merger or
Consolidation or Change of Name of Rights Agent.  Any Person into which the Rights Agent or any
successor Rights Agent may be merged or with which it may be consolidated, or
any Person resulting from any merger or consolidation to which the Rights Agent
or any successor Rights Agent shall be a party, or any Person succeeding to the
stockholder services business of the Rights Agent or any successor Rights
Agent, shall be the successor to the Rights Agent under this Agreement without
the execution or filing of any paper or any further act on the part of any of
the parties hereto; provided that such Person would be eligible for appointment
as a successor Rights Agent under the provisions of Section 22
hereof.  In case at the time such
successor Rights Agent shall succeed to the agency created by this Agreement,
any of the Rights Certificates shall have been countersigned but not delivered,
any such successor Rights Agent may adopt the countersignature of the
predecessor Rights Agent and deliver such Rights Certificates so countersigned;
and in case at that time any of the Rights Certificates shall not have been
countersigned, any successor Rights Agent may countersign such Rights
Certificates either in the name of the predecessor or in the name of the
successor Rights Agent; and in all such cases such Rights Certificates shall have
the full force provided in the Rights Certificates and in this Agreement.

 

19

 

In case at any time the name
of the Rights Agent shall be changed and at such time any of the Rights
Certificates shall have been countersigned but not delivered, the Rights Agent
may adopt the countersignature under its prior name and deliver Rights
Certificates so countersigned; and in case at that time any of the Rights
Certificates shall not have been countersigned, the Rights Agent may
countersign such Rights Certificates either in its prior name or in its changed
name; and in all such cases such Rights Certificates shall have the full force
provided in the Rights Certificates and in this Agreement.

 

21.           Duties of
Rights Agent.  The Rights
Agent undertakes the duties and obligations imposed by this Agreement upon the
following terms and conditions, by all of which the Company and the holders of
Rights Certificates, by their acceptance thereof, shall be bound:

 

(a)           The Rights
Agent may consult with legal counsel selected by it (who may be legal counsel
for the Company), and the opinion of such counsel shall be full and complete
authorization and protection to the Rights Agent as to any action taken or
omitted by it in good faith and in accordance with such opinion.

 

(b)           Whenever in the
performance of its duties under this Agreement the Rights Agent shall deem it
necessary or desirable that any fact or matter (including, without limitation,
the identity of any Acquiring Person and the determination of “current market
price”) be proved or established by the Company prior to taking or suffering
any action hereunder, such fact or matter (unless other evidence in respect
thereof shall be herein specifically prescribed) may be deemed to be
conclusively proved and established by a certificate signed by the Chairman of
the Board, the Chief Executive Officer, the Chief Financial Officer, the
Secretary or any Assistant Secretary of the Company and delivered to the Rights
Agent; and such certificate shall be full authorization and protection to the
Rights Agent for any action taken or suffered in good faith by it under the
provisions of this Agreement in reliance upon such certificate.

 

(c)           The Rights
Agent shall be liable hereunder only for its own gross negligence, bad faith or
willful misconduct; provided, however, that the Rights Agent shall not be
liable in excess of the greater of (i) its insurance proceeds plus
deductible and (ii) ten million dollars.

 

(d)           The Rights
Agent shall not be liable for or by reason of any of the statements of fact or
recitals contained in this Agreement or in the Rights Certificates (except as
to the fact that it has countersigned the Rights Certificates) or be required
to verify the same, but all such statements and recitals are and shall be
deemed to have been made by the Company only.

 

(e)           The Rights
Agent shall not have any liability for nor be under any responsibility in
respect of the validity of this Agreement or the execution and delivery hereof
(except the due execution hereof by the Rights Agent) or in respect of the
validity or execution of any Rights Certificate (except its countersignature
thereof); nor shall it be responsible for any breach by the Company of any
covenant or condition contained in this Agreement or in any Rights Certificate;
nor shall it be responsible for any adjustment required under the provisions of
Section 11 or 13 hereof or responsible for the manner, method or amount of
any such adjustment or the ascertaining of the existence of facts that would
require any such adjustment (except with respect to the exercise of Rights
evidenced by Rights Certificates after receipt of a certificate pursuant to Section 12
describing any such adjustment); nor shall it be responsible for any determination
by the Board of Directors of the Company of the current market value of the
Rights or Preferred Stock or Common Stock pursuant to the provisions of Section 15
hereof; nor shall it by any act hereunder be deemed to make any representation
or warranty as to the authorization or reservation of any shares of Preferred
Stock or other securities to be issued pursuant to this Agreement or any Rights
Certificate or as to whether any shares of Preferred Stock or other securities
will, when so issued, be validly authorized and issued, fully paid and
non-assessable.

 

20

 

(f)            The Company
agrees that it will perform, execute, acknowledge and deliver or cause to be
performed, executed, acknowledged and delivered all such further and other
acts, instruments and assurances as may reasonably be required by the Rights
Agent for the carrying out or performing by the Rights Agent of the provisions
of this Agreement.

 

(g)           The Rights
Agent is hereby authorized and directed to accept instructions with respect to
the performance of its duties hereunder and certificates delivered pursuant to
any provision hereof from the Chairman of the Board, the Chief Executive
Officer, the Chief Financial Officer, the Secretary, any Assistant Secretary,
the Treasurer or any Assistant Treasurer of the Company, and is authorized to
apply to such officers for advice or instructions in connection with its
duties, and it shall not be liable for any action taken, suffered or omitted to
be taken by it in good faith in accordance with instructions of any such
officer.  Any application by the Rights
Agent for written instructions from the Company may, at the option of the
Rights Agent, set forth in writing any action proposed to be taken or omitted
by the Rights Agent with respect to its duties or obligations under this
Agreement and the date on and/or after which such action shall be taken or
omitted and the Rights Agent shall not be liable for any action taken or
omitted in accordance with a proposal included in any such application on or
after the date specified therein (which date shall not be less than three
Business Days after the date any such officer actually receives such
application, unless any such officer shall have consented in writing to an
earlier date) unless, prior to taking or omitting any such action, the Rights
Agent has received written instructions in response to such application
specifying the action to be taken or omitted.

 

(h)           The Rights
Agent and any stockholder, director, affiliate, officer or employee of the
Rights Agent may buy, sell or deal in any of the Rights or other securities of
the Company or become pecuniarily interested in any transaction in which the
Company may be interested, or contract with or lend money to the Company or
otherwise act as fully and freely as though it were not the Rights Agent under
this Agreement.  Nothing herein shall
preclude the Rights Agent from acting in any other capacity for the Company or
for any other Person.

 

(i)            The Rights
Agent may execute and exercise any of the rights or powers hereby vested in it
or perform any duty hereunder either itself or by or through its attorneys or
agents, and the Rights Agent shall not be answerable or accountable for any
act, omission, default, neglect or misconduct of any such attorneys or agents
or for any loss to the Company or to the holders of the Rights resulting from
any such act, omission, default, neglect or misconduct, provided reasonable
care was exercised in the selection and continued employment thereof.

 

(j)            No provision of
this Agreement shall require the Rights Agent to expend or risk its own funds
or otherwise incur any financial liability in the performance of any of its
duties hereunder or in the exercise of its rights if there shall be reasonable
grounds for believing that repayment of such funds or adequate indemnification
against such risk or liability is not reasonably assured to it.

 

(k)           If, with
respect to any Rights Certificate surrendered to the Rights Agent for exercise
or transfer, the Certificate attached to the form of assignment or form of
election to purchase, as the case may be, has either not been completed or
indicates an affirmative response to clause 1 and/or 2 thereof, the Rights
Agent shall not take any further action with respect to such requested exercise
of transfer without first consulting with the Company.

 

22.           Change of
Rights Agent.  The Rights
Agent or any successor Rights Agent may resign and be discharged from its
duties under this Agreement upon 30 days’ notice in writing mailed to the
Company and to each transfer agent of the Common Stock or Preferred Stock by
registered or certified mail.  If the
transfer agency relationship in effect between the Company and the Rights Agent
terminates, the Rights Agent will be deemed to have resigned automatically and
be discharged from its duties under 

 

21

 

this
Agreement as of the effective date of such termination, and the Company shall
be responsible for sending any other notice required in connection
therewith.  The Company may remove the
Rights Agent or any successor Rights Agent upon 30 days’ notice in writing
mailed to the Rights Agent or successor Rights Agent, as the case may be, and
to each transfer agent of the Common Stock or Preferred Stock by registered or
certified mail and to the holders of the Rights Certificates by first-class
mail.  If the Rights Agent shall resign
or be removed or shall otherwise become incapable of acting, the Company shall
appoint a successor to the Rights Agent. 
If the Company shall fail to make such appointment within a period of 30
days after giving notice of such removal or after it has been notified in
writing of such resignation or incapacity by the resigning or incapacitated
Rights Agent or by the holder of a Rights Certificate (who shall, with such
notice, submit such holder’s Rights Certificate for inspection by the Company),
then the registered holder of any Rights Certificate may apply to any court of
competent jurisdiction for the appointment of a new Rights Agent.  Any successor Rights Agent, whether appointed
by the Company or by such a court, shall be a corporation or trust company,
which (a) is organized and doing business under the laws of the United
States, (b) is in good standing and authorized under such laws to exercise
corporate trust or stock transfer powers, (c) is subject to supervision or
examination by federal or state authority, and (d) has individually or
combined with an affiliate at the time of its appointment as Rights Agent a
combined capital and surplus of at least $50,000,000.  After appointment, the successor Rights Agent
shall be vested with the same powers, rights, duties and responsibilities as if
it had been originally named as Rights Agent without further act or deed; but
the predecessor Rights Agent shall deliver and transfer to the successor Rights
Agent any property at the time held by it hereunder, and execute and deliver
any further assurance, conveyance, act or deed necessary for the purpose.  Not later than the effective date of any such
appointment, the Company shall file notice thereof in writing with the
predecessor Rights Agent and each transfer agent of the Common Stock or
Preferred Stock, and mail a notice thereof in writing to the registered holders
of the Rights Certificates.  Failure to
give any notice provided for in this Section 22, however, or any defect
therein, shall not affect the legality or validity of the resignation or
removal of the Rights Agent or the appointment of the successor Rights Agent,
as the case may be.

 

23.           Issuance of New
Rights Certificates. 
Notwithstanding any of the provisions of this Agreement or of the Rights
to the contrary, the Company may, at its option, issue new Rights Certificates
evidencing Rights in such form as may be approved by its Board of Directors to
reflect any adjustment or change in the Purchase Price per share and the number
or kind or class of shares or other securities or property purchasable under
the Rights Certificates made in accordance with the provisions of this
Agreement.  In addition, in connection
with the issuance or sale of shares of Common Stock following the Distribution
Date and prior to the redemption or expiration of the Rights, the Company (a) shall,
with respect to shares of Common Stock so issued or sold pursuant to the
exercise of stock options or otherwise under any employee plan or arrangement,
which plan or arrangement is existing as of the Distribution Date, or upon the
exercise, conversion or exchange of any other securities issued by the Company
on or prior to the Distribution Date, and (b) may, in any other case, if
deemed necessary or appropriate by the Board of Directors of the Company, issue
Rights Certificates representing the appropriate number of Rights in connection
with such issuance or sale; provided, however, that (i) no such Rights
Certificates shall be issued if, and to the extent that, the Company shall be
advised by counsel that such issuance would create a significant risk of
material adverse tax consequences to the Company or the Person to whom such
Rights Certificates would be issued, and (ii) no such Rights Certificates
shall be issued if, and to the extent that, appropriate adjustment shall
otherwise have been made in lieu of the issuance thereof.

 

24.           Redemption, Termination and Exchange.

 

(a)           (i)            At any time before the
Distribution Date and before 5 P.M., San Francisco time, on the Final
Expiration Date, the Board of Directors of the Company may, at its option,
redeem all but not 

 

22

 

less
than all of the then outstanding Rights at a redemption price of $.01 per
Right, appropriately adjusted to reflect any stock split, stock dividend or
similar transaction occurring after July 30, 1999 (such redemption price being
hereinafter referred to as the “Redemption Price”).

 

(ii)           In addition, following the
occurrence of the Distribution Date but prior to any Stock Acquisition Date,
the Board of Directors of the Company may redeem all but not less than all of
the then outstanding Rights at the Redemption Price either (x) in
connection with any transaction not involving any Person or group of Affiliated
or Associated Persons that caused the Distribution Date to occur or any other
Person in which such Person or any constituent of such group has an interest or
on whose behalf such Person is acting directly or indirectly, or (y) in
connection with a tender or exchange offer for any and all outstanding shares
of Common Stock at a price and on terms determined, prior to the date of the
first acceptance of payment for any of such shares, by at least a majority of
the members of the Board of Directors to be both adequate and otherwise in the
best interests of the Company and its stockholders.

 

(iii)          In addition, following the
occurrence of a Stock Acquisition Date but prior to any event described in Section 13(a),
the Board of Directors of the Company may redeem all but not less than all of
the then outstanding Rights at the Redemption Price either (x) in
connection with any event specified in Section 13(a) in which all
holders of Common Stock are treated alike and not involving (other than as a
holder of Common Stock being treated like all other such holders) an Acquiring
Person or an Affiliate or Associate of an Acquiring Person or any other Person
in which such Acquiring Person, Affiliate or Associate has any interest, or any
other Person acting directly or indirectly on behalf of or in association with
any such Acquiring Person, Affiliate or Associate, or (y) in connection
with a tender offer for all outstanding shares of Common Stock at a price and
on terms determined by the Board of Directors to be both adequate and in the
best interest of the Company if and for as long as the Acquiring Person is not
then the Beneficial Owner of securities representing 15% or more of the Voting
Power represented by securities of the Company, and at the time of redemption
there are no other Persons who are Acquiring Persons and following the
occurrence of an event set forth in, and the expiration of any period during
which the holder of Rights may exercise the rights under, Section 11(a)(ii).

 

(b)           In the case of
a redemption permitted under Section 24(a)(i), immediately upon the action
of the Board of Directors of the Company ordering the redemption of the Rights,
evidence of which shall have been filed with the Rights Agent and without any
further action and without any notice, the right to exercise the Rights will
terminate and the only right thereafter of the holders of Rights shall be to
receive the Redemption Price.  In the
case of a redemption permitted under Section 24(a)(ii) or (iii),
evidence of which shall have been filed with the Rights Agent, the right to
exercise the Rights will terminate and represent only the right to receive the
Redemption Price only after 10 Business Days following the giving of notice of
such redemption to the holders of such Rights if no event set forth in Section 11(a)(ii) shall
have occurred, and, if such event shall have occurred, upon the later of 10
Business Days following the giving of such notice or the expiration of any
period during which the rights under Section 11(a)(ii) may be
exercised.  Within 10 days after the
action of the Board of Directors ordering any such redemption of the Rights,
the Company shall give notice of such redemption to the Rights Agent and the
holders of the then outstanding Rights by mailing such notice to the Rights
Agent and to all such holders at their last addresses as they appear upon the
registry books of the Rights Agent or, prior to the Distribution Date, on the
registry books of the Transfer Agent for the Common Stock.  Any notice that is mailed in the manner
herein provided shall be deemed given, whether or not the holder receives the notice.  Each such notice of redemption will state the
method by which the payment of the Redemption Price will be made.

 

In the case of a redemption
permitted under this Section 24(a), the Company may, at its option,
discharge all of its obligations with respect to the Rights by (i) issuing
a press release announcing the manner of redemption of the Rights and (ii) mailing
payment of the Redemption Price to the registered 

 

23

 

holders of the Rights at
their last addresses as they appear on the registry books of the Rights Agent
or, prior to the Distribution Date, on the registry books of the Transfer Agent
of the Common Stock, and upon such action, all outstanding Rights Certificates
shall be null and void without any further action by the Company.

 

(c)           (i)            Subject to the limitations
of applicable law, the Board of Directors of the Company may, at its option, at
any time after any Person becomes an Acquiring Person, redeem all or part of
the then outstanding and exercisable Rights (which shall not include Rights
that have become void pursuant to the provisions of Section 7(e)) hereof)
by exchanging for such Rights shares of Common Stock or common stock
equivalents at an exchange ratio of one share of Common Stock or common stock
equivalents per Right, appropriately adjusted to reflect any stock split, stock
dividend or similar transaction after July 30, 1999 (such exchange ratio
being hereinafter referred to as the “Exchange Ratio”).  Notwithstanding the foregoing, the Board of
Directors shall not be empowered to effect such exchange at any time after any
Person (other than the Company, any subsidiary of the Company, any employee
benefit plan of the company or any such subsidiary, or any entity holding
Common Stock for or pursuant to the terms of any such plan), together with all
Affiliates and Associates of such Person, becomes the Beneficial Owner of 50%
or more of the Common Stock then outstanding.

 

(ii)           Immediately upon the action
of the Board of Directors of the Company ordering the exchange of any Rights
pursuant to Section 24(c)(i) and without any further action and
without any notice, the right to exercise such Rights shall terminate and the
only right thereafter of a holder of such Rights shall be to receive that
number of shares of Common Stock or common stock equivalents equal to the
number of such Rights held by such holder multiplied by the Exchange
Ratio.  The Company shall promptly give
public notice of any such exchange; provided, however, that the failure to
give, or any defect in, such notice shall not affect the validity of such
exchange.  The Company promptly shall
mail a notice of any such exchange to all of the holders of such Rights at
their last addresses as they appear upon the registry books of the Rights
Agent.  Any notice that is mailed in the
manner herein provided shall be deemed given, whether or not the holder
receives the notice.  Each such notice of
exchange will state the method by which the exchange of the Common Stock for
Rights will be effected and, in the event of any partial exchange, the number
of Rights that will be exchanged.  Any
partial exchange shall be effected pro rata based on the number of Rights
(other than Rights that have become void pursuant to the provisions of Section 7(e) hereof)
held by each holder of Rights.

 

(iii)          The Company shall have the
right, in the discretion of its Board of Directors, to condition the right of
any holder of shares of Common Stock to receive additional shares pursuant to
this Section 24(c) on the prior receipt by the Company or its
transfer agent of:  (A) with respect
to Rights registered in such holder’s name, a document, signed by such holder,
verifying that the Rights held by such holder have not become and are not null
and void pursuant to Section 7(e), and (B) with respect to Rights
registered in the name of The Depository Trust Company or any other nominee
(each hereinafter referred to as a “Nominee”), a document, signed by the
appropriate Nominee, verifying the number of such Rights that are held by such
Nominee and that have not become and are not null and void pursuant to Section 7(e),
based on the Nominee’s inquiry of and written or electronic responses from
participating securities brokers; provided that any such document to be
delivered pursuant to the preceding clause (A) or (B) shall be in
such form and content as the Board of Directors may approve; and provided
further that the Company may establish such trust or similar entity on such
terms as the Board of Directors may determine and contribute to such trust any
or all of the additional shares to be issued pursuant to this Section 24(c),
for distribution to the respective holders of Rights on satisfaction of the
applicable condition pursuant to the preceding clause (A) or (B).

 

(iv)          In addition to and without
limiting the foregoing provisions of this Section 24(c), in any exchange
pursuant to this Section 24(c), the Company, at its option, may substitute
shares of 

 

24

 

Preferred Stock or shares
having the same or more favorable rights, privileges and preferences as the
Preferred Stock (“equivalent preferred stock”) for Common Stock exchangeable
for Rights, at the initial rate of one one-thousandth of a share of Preferred
Stock (or equivalent preferred stock) for each share of Common Stock, as
appropriately adjusted to reflect adjustments in the voting rights of the
shares of Preferred Stock pursuant to the terms thereof, so that the fraction
of a share of Preferred Stock delivered in lieu of each share of Common Stock
shall have the same voting rights as one share of Common Stock.

 

(v)           In the event that there
shall not be sufficient shares of Common Stock or Preferred Stock issued but
not outstanding or authorized but unissued to permit any exchange of Rights as
contemplated in accordance with this Section 24(c), the Company shall take
all such action as may be necessary to authorize additional shares of Common
Stock or Preferred Stock for issuance upon exchange of the Rights.

 

(d)           The Company
shall not be required to issue fractions of shares of Common Stock or to
distribute certificates that evidence fractional shares of Common Stock.  In lieu of such fractional shares of Common
Stock, the Company shall pay to the registered holders of the Rights
Certificates with regard to which such fractional shares of Common Stock would
otherwise be issuable an amount in cash equal to the same fraction of the
current market value of a whole share of Common Stock.  For the purposes of this Section 24(d),
the current market value of a whole share of Common Stock shall be the current
market price of a share of Common Stock (as determined pursuant to Section 11(b) hereof)
for the Trading Day immediately prior to the date of exchange pursuant to this Section 24(d).

 

25.           Notice of
Certain Events.  In case the
Company shall propose (a) to pay any dividend payable in stock of any
class to the holders of Preferred Stock or to make any other distribution to
the holders of Preferred Stock (other than a regular quarterly cash dividend
out of earnings or retained earnings of the Company) or (b) to offer to
the holders of Preferred Stock rights or warrants to subscribe for or to
purchase any additional shares of Preferred Stock or shares of stock of any
class or any other securities, rights or options, or (c) to effect any
reclassification of the Preferred Stock (other than a reclassification
involving only the subdivision of outstanding shares of Preferred Stock), or (d) to
effect any consolidation or merger into or with, or to effect any sale or other
transfer (or to permit one or more of its subsidiaries to effect any sale or
other transfer), in one or more transactions, of more than 50% of the assets or
earning power of the Company and its subsidiaries (taken as a whole) to, any
other Person, or (e) to effect the liquidation, dissolution or winding up
of the Company:  then, in each such case,
the Company shall give to each holder of a Right and the Rights Agent, in
accordance with Section 26 hereof, a notice of such proposed action, which
shall specify the record date for the purposes of such stock dividend,
distribution of rights or warrants, or the date on which such reclassification,
consolidation, merger, sale, transfer, liquidation, dissolution, or winding up
is to take place and the date of participation therein by the holders of the
shares of Preferred Stock, if any such date is to be fixed, and such notice
shall be so given in the case of any action covered by clause (a) or (b) above
at least 20 days prior to the record date for determining holders of the shares
of Preferred Stock for purposes of such action, and in the case of any such
other action, at least 20 days prior to the date of the taking of such proposed
action or the date of participation therein by the holders of the shares of
Preferred Stock whichever shall be the earlier.

 

In case any of the events
set forth in Section 11(a)(ii) or 13(a) of this Agreement shall
occur, then, in any such case, the Company or the Principal Party, as the case
may be, shall as soon as practicable thereafter give to each holder of a Rights
Certificate, in accordance with Section 26 hereof, a notice of the
occurrence of such event, which shall specify the event and the consequences of
the event to holders of Rights under Section 11(a)(ii) or 13(a) hereof,
as the case may be.

 

25

 

The failure to give notice
required by this Section 25 or any defect therein shall not affect the
legality or validity of the action taken by the Company or the vote upon any
such action.

 

26.           Notices.  Notices or demands authorized by this
Agreement to be given or made by the Rights Agent or by the holder of any
Rights Certificate to or on the Company shall be sufficiently given or made if
sent by overnight delivery service or first-class mail, charges and postage
prepaid, addressed (until another address is filed in writing with the Rights
Agent) as follows:

 

Simpson Manufacturing Co., Inc.

5956 W. Las Positas Blvd.

Pleasanton, CA  94588

Attention:  Secretary

 

Subject to the provisions of
Section 22, any notice or demand authorized by this Agreement to be given
or made by the Company or by the holder of any Rights Certificate to or on the
Rights Agent shall be sufficiently given or made if sent by overnight delivery
service or first-class mail, charges and postage prepaid, addressed (until
another address is filed in writing with the Company) as follows:

 

Computershare Trust Company, N.A.

250 Royall Street

Canton, MA  02021

Attention:  Client Services

 

Notices or demands
authorized by this Agreement to be given or made by the Company or the Rights
Agent to the holder of any Rights Certificate shall be sufficiently given or
made if sent by first-class mail, postage prepaid, addressed to such holder at
the address of such holder as shown on the registry books of the Company.

 

27.           Supplements and
Amendments.  The Company
and the Rights Agent may from time to time supplement or amend this Agreement
without approval of any holders of Rights or Rights Certificates in order (i) to
cure any ambiguity, (ii) to correct or supplement any provision contained
herein that may be defective or inconsistent with any other provisions herein, (iii) prior
to the Distribution Date, to change or supplement the provisions hereunder as
the Company may deem necessary or desirable or (iv) on or following the
Distribution Date, to change or supplement the provisions hereof in any manner
that the Company may deem necessary or desirable and that shall not adversely
affect the interests of the holders of Rights Certificates.  Upon the delivery of a certificate from an
appropriate officer of the Company stating that the proposed supplement or
amendment is in compliance with the terms of this Section 27, the Rights
Agent shall execute such supplement or amendment unless the Rights Agent shall
have determined in good faith that such supplement or amendment would adversely
affect its interests under this Agreement. 
Prior to the Distribution Date, the interests of the holders of Rights
shall be deemed coincident with the interests of the holders of Common Stock.

 

28.           Determination
and Actions by the Board of Directors, etc.  For all purposes of this Agreement, any
calculation of the number of shares of Common Stock outstanding at any
particular time, including for purposes of determining the particular
percentage of such outstanding shares of Common Stock or any other securities
of which any Person is the Beneficial Owner, shall be made in accordance with
the last sentence of Rule 13d-3(d)(1)(i) of the General Rules and
Regulations under the Exchange Act as in effect on the date of this
Agreement.  The Board of Directors of the
Company shall have the exclusive power and authority to administer this
Agreement and to exercise all rights and powers specifically granted to the
Board, or the Company, or as may be necessary or advisable in the
administration of this Agreement, including, without limitation, the right and
power to (i) interpret the 

 

26

 

provisions
of this Agreement, and (ii) make all determinations deemed necessary or
advisable for the administration of this Agreement (including a determination
to redeem or not redeem the Rights or to amend this Agreement).  All such actions, calculations,
interpretations and determinations (including, for purposes of clause (y) below,
all omissions with respect to the foregoing) that are done or made by the Board
in good faith, shall (x) be final, conclusive and binding on the Company,
the Rights Agent, the holders of the Rights Certificates and all other Persons,
and (y) not subject the Board to any liability to the holders of the
Rights Certificates.

 

29.           Successors.  All the covenants and provisions of this
Agreement by or for the benefit of the Company or the Rights Agent shall bind
and inure to the benefit of their respective successors and assigns hereunder.

 

30.           Benefits of
This Agreement.  Nothing in
this Agreement shall be construed to give to any Person other than the Company,
the Rights Agent and the registered holders of the Rights Certificates (and,
prior to the Distribution Date, the Common Stock) any legal or equitable right,
remedy or claim under this Agreement; but this Agreement shall be for the sole
and exclusive benefit of the Company, the Rights Agent and the registered holders
of the Rights Certificates (and, prior to the Distribution Date, the Common
Stock).

 

31.           Severability.  If any term, provision, covenant or
restriction of this Agreement is held by a court of competent jurisdiction to
be invalid, void or unenforceable, the remainder of the terms, provisions,
covenants and restrictions of this Agreement shall remain in full force and
effect and shall in no way be affected, impaired or invalidated.

 

32.           Governing Law.  This Agreement, each Right and each Rights
Certificate issued hereunder shall be deemed to be a contract made under the
laws of the State of Delaware and for all purposes shall be governed by and
construed in accordance with the laws of such State applicable to contracts to
be made and to be performed entirely within such State.

 

33.           Counterparts.  This Agreement may be executed in any number
of counterparts and each of such counterparts shall for all purposes be deemed
to be an original, and all such counterparts shall together constitute but one
and the same instrument.  A signature to
this Agreement transmitted electronically shall have the same authority, effect
and enforceability as an original signature.

 

34.           Descriptive
Headings.  Descriptive
headings of the several Sections of this Agreement are inserted for convenience
only and shall not control or affect the meaning or construction of any of the
provisions hereof

 

35.           Force Majeure.  Notwithstanding anything to the contrary
contained herein, the Rights Agent shall not be liable for any delays or failures
in performance resulting from acts beyond its reasonable control, including,
without limitation, acts of God, terrorist acts, shortage of supply, breakdowns
or malfunctions, interruptions or malfunction of computer facilities, or loss
of data due to power failures or mechanical difficulties with information
storage or retrieval systems, labor difficulties, war, or civil unrest.

 

[Signature
Page Follows]

 

27

 

IN
WITNESS WHEREOF, this Amended and Restated Rights Agreement has been duly
executed on behalf of the parties hereto as of the day and year first above
written.

 

	
  SIMPSON MANUFACTURING CO., INC. 
  

  	
   

  	
  COMPUTERSHARE TRUST COMPANY, N.A.,

  as Rights Agent 

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  By:

  	
  /s/ Karen Colonias

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  By:

  	
  /s/ Dennis V. Moccia

  
	
  Title:

  	
  Chief Financial Officer

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  Title:

  	
  Manager, Contract Administration

  

 

28

 

EXHIBIT
A

 

CERTIFICATE OF DESIGNATION,
PREFERENCES AND RIGHTS

OF

SERIES A PARTICIPATING PREFERRED STOCK

OF

SIMPSON MANUFACTURING CO., INC.

 

Pursuant
to Section 151 of the General Corporation Law

of
the State of Delaware

 

I, Stephen B. Lamson, Chief Financial
Officer, Secretary and Treasurer of Simpson Manufacturing Co., Inc. (the “Corporation”),
a corporation organized and existing under the laws of the State of Delaware,
DO HEREBY CERTIFY:

 

1.                                       That no shares of the Series A
Participating Preferred Stock of the Corporation have been issued.

 

2.                                       That, pursuant to the
authority conferred on the Board of Directors by the Certificate of
Incorporation of the Corporation, the Board of Directors on July 29, 1999
adopted the following resolutions which set forth the terms of a series of
preferred stock designated as Series A Participating Preferred Stock:

 

RESOLVED, that pursuant to the authority
vested in the Board of Directors of the Corporation by Article IV of the
Certificate of Incorporation, a series of preferred stock is hereby designated
as “Series A Participating Preferred Stock” of the Corporation and that
the designation and amount thereof and the relative powers, rights, preferences
and limitations of the shares of such series are as follows:

 

(a)                                  Designation and Amount.  The shares of the series of Preferred Stock
shall be designated as “Series A Participating Preferred Stock,” par value
$.01 per share, and the number of shares constituting such series shall be one
million (1,000,000).  Such number of shares
may be increased or decreased by resolution of the Board of Directors;
provided, that no decrease shall reduce the number of shares of Series A
Participating Preferred Stock to a number less than that of the shares then
outstanding plus the number of shares issuable upon exercise of outstanding
rights, options or warrants or upon conversion of outstanding securities issued
by the Corporation.

 

(b)                                 Dividends and Distributions.

 

(i)                                     Subject to the
prior and superior rights of the holders of any shares of any series of
Preferred Stock ranking prior and superior to the shares of Series A
Participating Preferred Stock with respect to dividends or distributions
(except as provided in paragraph (f) below), the holders of shares of Series A
Participating Preferred Stock, in preference to the holders of shares of Common
Stock, par value $.0l per share (the 

 

A-1

 

“Common Stock”), of the Corporation and any
other junior stock, shall be entitled to receive, when, as and if declared by
the Board of Directors out of funds legally available for the purpose, in an
amount per share (rounded to the nearest cent) equal to the greater of (x) $25.00
or (y) subject to the provision for adjustment hereinafter set forth,
1,000 times the aggregate per share amount of all cash dividends, and 1,000
times the aggregate per share amount (payable in kind) of all non-cash
dividends or other distributions (except as provided in paragraph (f) below)
other than a dividend payable in shares of Common Stock or a subdivision of the
outstanding shares of Common Stock (by reclassification or otherwise), declared
on the Common Stock, since the first issuance of any share or fraction of a
share of Series A Participating Preferred Stock.  In the event the Corporation shall at any
time after the first issuance of any share or fraction of a share of Series A
Participating Preferred Stock (A) declare any dividend on Common Stock
payable in shares of Common Stock, (B) subdivide the outstanding Common Stock,
or (C) combine the outstanding Common Stock into a smaller number of
shares, by reclassification or otherwise, then in each such case the amount to
which holders of shares of Series A Participating Preferred Stock were
entitled immediately prior to such event under the preceding sentence shall be
adjusted by multiplying such amount by a fraction the numerator of which is the
number of shares of Common Stock outstanding immediately after such event and
the denominator of which is the number of shares of Common Stock that were
outstanding immediately prior to such event.

 

(ii)                                  Other than with
respect to a dividend on the Common Stock payable in shares of Common Stock,
the Corporation shall declare a dividend or distribution on the Series A
Participating Preferred Stock as provided in subparagraph (1) above at the
same time as it declares a dividend or distribution on the Common Stock.  The date or dates set for the payment of such
dividend or distribution on the Series A Participating Preferred Stock and
the record date or dates for the determination of entitlement to such dividend
or distribution shall be the same date or dates as are set for the dividend or
distribution on the Common Stock.  On any
such payment date, no dividend or distribution shall be paid on the Common
Stock until the appropriate payment has been made on the Series A
Participating Preferred Stock.

 

(c)                                  Voting Rights.  The holders of shares of Series A
Participating Preferred Stock shall have the following voting rights:

 

(i)                                     Subject to the
provision for adjustment hereinafter set forth, each share of Series A
Participating Preferred Stock shall entitle the holder thereof to 1,000 votes
on all matters submitted to a vote of the stockholders of the Corporation.  In the event the Corporation shall at any
time after the first issuance of any share or fraction of a share of Series A
Participating Preferred Stock (A) declare any dividend on Common Stock
payable in shares of Common Stock, (B) subdivide the outstanding Common
Stock into a greater number of shares, or (C) combine the outstanding
Common Stock into a smaller number of shares, by reclassification or otherwise,
then in each such case the number of votes per share to which holders of shares
of Series A Participating Preferred Stock were entitled immediately prior
to such event shall be adjusted by multiplying such number by a fraction the
numerator of which is the number of shares of Common Stock outstanding 

 

A-2

 

immediately after such event and the
denominator of which is the number of shares of Common Stock outstanding
immediately prior to such event.

 

(ii)                                  Except as
otherwise provided herein or by law, the holders of shares of Series A
Participating Preferred Stock and the holders of shares of Common Stock shall
vote together as one class on all matters submitted to a vote of stockholders
of the Corporation.

 

(iii)                               (A)                              If at any time
dividends on any Series A Participating Preferred Stock shall be in
arrears in an amount equal to six (6) quarterly dividends thereon, the
occurrence of such contingency shall mark the beginning of a period (herein
called a “default period”) which shall extend until such time when all accrued
and unpaid dividends for all previous quarterly dividend periods and for the
current quarterly dividend period on all shares of Series A Participating
Preferred Stock then outstanding shall have been declared and paid or set apart
for payment.  During each default period,
all holders of Preferred Stock (including holders of the Series A
Participating Preferred Stock) with dividends in arrears in an amount equal to
six (6) quarterly dividends thereon, voting as a class, irrespective of
series, shall have the right to elect two (2) Directors.

 

(B)                                During any
default period, such voting right of the holders of Series A Participating
Preferred Stock may be exercised initially at a special meeting called pursuant
to subparagraph (C) of this Section 7(c)(iii) or at any annual
meeting of stockholders, and thereafter at annual meetings of stockholders,
provided that neither such voting right nor the right of the holders of any
other series of Preferred Stock, if any, to increase, in certain cases, the
authorized number of Directors shall be exercised unless the holders of ten
percent (10%) in number of shares of Preferred Stock outstanding shall be
present in person or by proxy.  The
absence of a quorum of the holders of Common Stock shall not affect the
exercise by the holders of Preferred Stock of such voting right.  At any meeting at which the holders of
Preferred Stock shall exercise such voting right initially during an existing
default period, they shall have the right, voting as a class, to elect
Directors to fill such vacancies, if any, in the Board of Directors as may then
exist up to two (2) Directors, or if such right is exercised at an annual
meeting, to elect two (2) Directors. 
If the number which may be so elected at any special meeting does not
amount to the required number, the holders of the Preferred Stock shall have
the right to make such increase in the number of Directors as shall be
necessary to permit the election by them of the required number.  After the holders of the Preferred Stock
shall have exercised their right to elect Directors in any default period and
during the continuance of such period, the number of Directors shall not be
increased or decreased except by vote of the holders of Preferred Stock as
herein provided or pursuant to the rights of any equity securities ranking
senior to or pan passu with the Series A Participating Preferred Stock.

 

A-3

 

(C)                                Unless the
holders of Preferred Stock shall, during an existing default period, have
previously exercised their right to elect Directors, the Board of Directors may
order, or any stockholder or stockholders owning in the aggregate not less than
ten percent (10%) of the total number of shares of Preferred Stock outstanding,
irrespective of series, may request, the calling of a special meeting of the
holders of Preferred Stock, which meeting shall thereupon be called by the
Chairman of the Board or the Secretary of the Corporation.  Notice of such meeting and of any annual
meeting at which holders of Preferred Stock are entitled to vote pursuant to
this subparagraph (c)(iii)(C) shall be given to each holder of record of
Preferred Stock by mailing a copy of such notice to him at his last address as
the same appears on the books of the Corporation.  Such meeting shall be called for a time not
earlier than 10 days and not later than 60 days after such order or request or
in default of the calling of such meeting within 60 days after such order or
request, such meeting may be called on similar notice by any stockholder or
stockholders owning in the aggregate not less than ten percent (10%) of the
total number of shares of Preferred Stock outstanding.  Notwithstanding the provisions of this
subparagraph (c)(iii)(C), no such special meeting shall be called during the
period within 60 days immediately preceding the date fixed for the next annual
meeting of the stockholders.

 

(D)                               In any default
period, the holders of Common Stock, and other classes of stock of the
Corporation, if applicable, shall continue to be entitled to elect the whole
number of Directors until the holders of Preferred Stock shall have exercised
their right to elect two (2) Directors voting as a class, after the
exercise of which right (x) the Directors so elected by the holders of
Preferred Stock shall continue in office until their successors shall have been
elected by such holders or until the expiration of the default period, and (y) any
vacancy in the Board of Directors may (except as provided in subparagraph
(c)(iii)(B) of this Section 7) be filled by vote of a majority of the
remaining Directors theretofore elected by the holders of the class of stock
which elected the Director whose office shall have become vacant.  References in this paragraph (iii) to
Directors elected by the holders of a particular class of stock shall include
Directors elected by such Directors to fill vacancies as provided in clause (y) of
the foregoing sentence.

 

(E)                                 Immediately
upon the expiration of a default period (x) the right of the holders of
Preferred Stock as a class to elect Directors shall cease, (y) the term of
any Directors elected by the holders of Preferred Stock as a class shall
terminate, and (z) the number of Directors shall be such number as may be
provided for in, or pursuant to, the Certificate of Incorporation or Bylaws
irrespective of any increase made pursuant to the provisions of subparagraph
(c)(iii)(B) of this Section 7 (such number being subject, however, to
change thereafter in any manner provided by law or in the Certificate of
Incorporation or Bylaws).  Any vacancies
in the Board of Directors effected by the provisions of clauses (y) and (z) in
the preceding sentence may be filled by a majority of the remaining Directors,
even though less than a quorum.

 

A-4

 

(iv)                              Except as set
forth herein, holders of Series A Participating Preferred Stock shall have
no special voting rights and their consent shall not be required (except to the
extent they are entitled to vote on matters submitted to the stockholders of
the Corporation as set forth herein) for taking any corporate action.

 

(d)                                 Certain Restrictions.

 

(i)                                     Whenever
quarterly dividends or other dividends or distributions payable on the Series A
Participating Preferred Stock as provided in Subsection (b) are in
arrears, thereafter and until all accrued and unpaid dividends and
distributions, whether or not declared, on shares of Series A
Participating Preferred Stock outstanding shall have been paid in full, the
Corporation shall not

 

(A)                              declare or pay
dividends on, make any other distributions on, or redeem or purchase or
otherwise acquire for consideration any shares of stock ranking junior (either
as to dividends or upon liquidation, dissolution or winding up) to the Series A
Participating Preferred Stock;

 

(B)                                declare or pay
dividends on or make any other distributions on any shares of stock ranking on
a parity (either as to dividends or upon liquidation, dissolution or winding
up) with the Series A Participating Preferred Stock except dividends paid
ratably on the Series A Participating Preferred Stock and all such parity
stock on which dividends are payable or in arrears in proportion to the total
amounts to which the holders of all such shares are then entitled;

 

(C)                                redeem or
purchase or otherwise acquire for consideration shares of any stock ranking on
a parity (either as to dividends or upon liquidation, dissolution or winding
up) with the Series A Participating Preferred Stock provided that the
Corporation may at any time redeem, purchase or otherwise acquire shares of any
such parity stock in exchange for shares of any stock of the Corporation
ranking junior (either as to dividends or upon dissolution, liquidation or
winding up) to the Series A Participating Preferred Stock; or

 

(D)                               purchase or
otherwise acquire for consideration any shares of Series A Participating
Preferred Stock or any shares of stock ranking on a parity with the Series A
Participating Preferred Stock except in accordance with a purchase offer made
in writing or by publication (as determined by the Board of Directors) to all
holders of such shares upon such terms as the Board of Directors, after
consideration of the respective annual dividend rates and other relative rights
and preferences of the respective series and classes, shall determine in good
faith will result in fair and equitable treatment among the respective series
or classes.

 

(ii)                                  The Corporation
shall not permit any subsidiary of the Corporation to purchase or otherwise
acquire for consideration any shares of stock of the Corporation unless the
Corporation could, under subparagraph (i) of this Subsection (d), purchase
or otherwise acquire such shares at such time and in such manner.

 

A-5

 

(e)                                  Reacquired Shares. Any shares of
Series A Participating Preferred Stock purchased or otherwise acquired by
the Corporation in any manner whatsoever shall be retired and canceled promptly
after the acquisition thereof.  All such
shares shall upon their cancellation become authorized but unissued shares of
Preferred Stock and may be reissued as part of a new series of Preferred Stock
to be created by resolution or resolutions of the Board of Directors, subject
to the conditions and restrictions on issuance set forth herein.

 

(f)                                    Liquidation, Dissolution or
Winding Up.

 

(i)                                     Upon any liquidation
(voluntary or otherwise), dissolution or winding up of the Corporation, no
distribution shall be made to the holders of shares of stock ranking junior
(either as to dividends or upon liquidation, dissolution or winding up) to the Series A
Participating Preferred Stock unless, prior thereto, the holders of shares of Series A
Participating Preferred Stock shall have received per share, the greater of
$1,000.00 or 1,000 times the payment made per share of Common Stock, plus an
amount equal to accrued and unpaid dividends and distributions thereon, whether
or not declared, to the date of such payment (the “Series A Liquidation
Preference”).  Following the payment of
the full amount of the Series A Liquidation Preference, no additional
distributions shall be made to the holders of shares of Series A
Participating Preferred Stock unless, prior thereto, the holders of shares of
Common Stock shall have received an amount per share (the “Common Adjustment”)
equal to the quotient obtained by dividing (A) the Series A
Liquidation Preference by (B) 1,000 (as appropriately adjusted as set
forth in subparagraph (iii) below to reflect such events as stock splits,
stock dividends and recapitalization with respect to the Common Stock) (such
number in clause (B), the “Adjustment Number”). 
Following the payment of the full amount of the Series A
Liquidation Preference and the Common Adjustment in respect of all outstanding
shares of Series A Participating Preferred Stock and Common Stock,
respectively, holders of Series A Participating Preferred Stock and
holders of shares of Common Stock shall receive their ratable and proportionate
share of the remaining assets to be distributed in the ratio of the Adjustment
Number to 1 with respect to such Preferred Stock and Common Stock, on a per
share basis, respectively.

 

(ii)                                  In the event
there are not sufficient assets available to permit payment in full of the Series A
Liquidation Preference and the liquidation preferences of all other series of
Preferred Stock, if any, which rank on a parity with the Series A
Participating Preferred Stock then such remaining assets shall be distributed
ratably to the holders of such parity shares in proportion to their respective
liquidation preferences.  In the event
there are not sufficient assets available to permit payment in full of the
Common Adjustment, then such remaining assets shall be distributed ratably to
the holders of Common Stock.

 

(iii)                               In the event
the Corporation shall at any time after the first issuance of any share or
fraction of a share of Series A Participating Preferred Stock (A) declare
any dividend on Common Stock payable in shares of Common Stock, (B) subdivide
the outstanding Common Stock, or (C) combine the outstanding Common Stock
into a smaller number of shares, by reclassification or otherwise, then in each
such case the Adjustment Number in effect immediately prior to such event shall
be adjusted by 

 

A-6

 

multiplying such Adjustment Number by a
fraction the numerator of which is the number of shares of Common Stock
outstanding immediately after such event and the denominator of which is the
number of shares of Common Stock that were outstanding immediately prior to
such event.

 

(g)                                 Consolidation, Merger etc.  In case the Corporation shall enter into any
consolidation, merger, combination or other transaction in which the shares of
Common Stock are exchanged for or changed into other stock or securities, cash
and/or any other property, then in any such case the shares of Series A
Participating Preferred Stock shall at the same time be similarly exchanged or
changed in an amount per share (subject to the provision for adjustment
hereinafter set forth) equal to 1,000 times the aggregate amount of stock,
securities, cash and/or any other property (payable in kind), as the case may
be, into which or for which each share of Common Stock is changed or
exchanged.  In the event the Corporation
shall at any time after the first issuance of any share or fraction of a share
of Series A Participating Preferred Stock (i) declare any dividend on
Common Stock payable in shares of Common Stock, (ii) subdivide the
outstanding Common Stock, or (iii) combine the outstanding Common Stock
into a smaller number of shares, then in each such case the amount set forth in
the preceding sentence with respect to the exchange or change of shares of Series A
Participating Preferred Stock shall be adjusted by multiplying such amount by a
fraction the numerator of which is the number of shares of Common Stock
outstanding immediately after such event and the denominator of which is the
number of shares of Common Stock that are outstanding immediately prior to such
event.

 

(h)                                 Redemption.  The shares of Series A Participating
Preferred Stock shall not be redeemable.

 

(i)                                     Ranking.  The Series A Participating Preferred
Stock shall rank junior to all other series of the Corporation’s Preferred
Stock as to the payment of dividends and the distribution of assets, unless the
terms of any such series shall provide otherwise.

 

(j)                                     Amendment.  The Certificate of Incorporation and the
Bylaws of the Corporation shall not be amended in any manner which would
materially alter or change the powers, preferences or special rights of the Series A
Participating Preferred Stock so as to affect them adversely without the
affirmative vote of the holders of a majority of the outstanding shares of Series A
Participating Preferred Stock voting separately as a class.

 

(k)                                  Fractional Shares.  Series A Participating Preferred Stock
may be issued in fractions of a share which shall entitle the holder, in
proportion to such holder’s fractional shares, to exercise voting rights,
receive dividends, participate in distributions and to have the benefit of all
other rights of holders of Series A Participating Preferred Stock.

 

And be it further

 

RESOLVED, that any Officer of the Corporation
be, and each of them hereby is, authorized to execute a Certificate of
Designation with respect to the Series A Participating Preferred Stock
pursuant to section 151 of the General Corporation Law of the State of Delaware

 

A-7

 

and to take all appropriate
action to cause such Certificate to become effective, including, but not
limited to, the filing of such Certificate with the Secretary of State of the
State of Delaware.

 

IN WITNESS WHEREOF, I have executed and
subscribed this Certificate and do affirm the foregoing as true under the
penalties of perjury this
           day of
                                
1999.

 

 

	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Stephen B. Lamson

  
	
   

  	
   

  	
  Chief Financial Officer

  
	
   

  	
   

  	
  Secretary and Treasurer

  
	
  ATTEST:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  

 

A-8

 

EXHIBIT
B

 

[Form of Rights Certificate]

 

	
  Certificate No. R-

  	
   

  	
  Rights

  

 

NOT EXERCISABLE AFTER
JUNE 14, 2019, OR EARLIER IF NOTICE OF REDEMPTION IS GIVEN.  THE RIGHTS ARE SUBJECT TO REDEMPTION, AT THE
OPTION OF THE COMPANY, AT $.01 PER RIGHT ON THE TERMS SET FORTH IN THE AMENDED
AND RESTATED RIGHTS AGREEMENT.  [THE
RIGHTS REPRESENTED BY THIS CERTIFICATE WERE ISSUED TO A PERSON WHO WAS AN
ACQUIRING PERSON OR AN ASSOCIATE OR AFFILIATE OF AN ACQUIRING PERSON.  THIS RIGHTS CERTIFICATE AND THE RIGHTS
REPRESENTED HEREBY MAY BECOME VOID UNDER THE CIRCUMSTANCES SPECIFIED IN SECTION 7(e) OF
THE AMENDED AND RESTATED RIGHTS AGREEMENT.]*

 

Rights Certificate

 

SIMPSON MANUFACTURING CO, INC

 

This certifies that
                                                  ,
or registered assigns, is the registered owner of the number of Rights, set
forth above, each of which entitles the owner thereof, subject to the terms,
provisions and conditions of the Amended and Restated Rights Agreement dated as
of June 15, 2009 (the “Rights Agreement”), between Simpson Manufacturing
Co., Inc., a Delaware corporation (the “Company”), and Computershare Trust
Company, N.A., a national banking association (the “Rights Agent”), to purchase
from the Company at any time after the Distribution Date (as such term is
defined in the Rights Agreement) and prior to 5 P.M. (San Francisco time)
on June 14, 2019, at the office of the Rights Agent designated for such
purpose, one one-thousandth of a fully paid, non-assessable share of Series A
Participating Preferred Stock (the “Preferred Stock”) of the Company at a
purchase price of $100 per one one-thousandth of a share (the “Purchase Price”),
upon presentation and surrender of this Rights Certificate with the appropriate
Form of Election to Purchase and Certificate duly executed.  The number of Rights evidenced by this Rights
Certificate (and the number of shares that may be purchased upon exercise
thereof) set forth above, and the Purchase Price set forth above are the number
and Purchase Price as of the close of business on the date of the Rights
Agreement, based on the Preferred Stock as constituted at such date, but as
provided in the Rights Agreement, the Purchase Price and the number of shares
of Preferred Stock or other securities which may be purchased upon the exercise
of the Rights evidenced by this Rights Certificate are subject to modification
and adjustment upon the happening of certain events.

 

This Rights Certificate is subject to all of
the terms, provisions and conditions of the Rights Agreement, which terms,
provisions and conditions are hereby incorporated herein by reference and made
a part hereof and to which Rights Agreement reference is hereby made for a full
description of the rights, limitations of rights, obligations, duties and
immunities hereunder of the Rights Agent, the Company and the holders of the
Rights Certificates.  Copies of the
Rights Agreement are on file at the principal office of the Company and are
also available upon written request to the Company.

 

*                                         The portion of the legend in
brackets shall be inserted only if applicable.

 

B-1

 

This Rights Certificate, with or without
other Rights Certificates, upon surrender at the office of the Rights Agent
designated for such purpose, may be exchanged for another Rights Certificate or
Rights Certificates of like tenor and date evidencing Rights entitling the
holder to purchase a like aggregate number of shares of Preferred Stock as the
Rights evidenced by the Rights Certificate or Rights Certificates surrendered
shall have entitled such holder to purchase. 
If this Rights Certificate shall be exercised (other than pursuant to Section 11(a)(ii) of
the Rights Agreement) in part, the holder shall be entitled to receive upon
surrender hereof another Rights Certificate or Rights Certificates for the
number of whole Rights not exercised.  If
this Rights Certificate shall be exercised as a whole or in part pursuant to Section 11(a)(ii) of
the Rights Agreement, the holder shall be entitled to receive this Rights
Certificate duly marked to indicate that such exercise has occurred as set forth
in the Rights Agreement.

 

Subject to the provisions of the Rights
Agreement, the Rights evidenced by this Certificate may be redeemed by the
Company at its option at a redemption price of $.01 per Right.  Subject to the provisions of the Rights
Agreement, the Company, at its option, may elect to mail payment of the
redemption price to the registered holder of the Rights at the time of
redemption, in which event this Rights Certificate may become void without any
further action by the Company.

 

No fractional shares of Preferred Stock will
be issued upon the exercise of any Right or Rights evidenced hereby (other than
fractions which are integral multiples of one one-thousandth of a share of
Preferred Stock, which may, at the election of the Company, be evidenced by
depositary receipts), but in lieu thereof a cash payment will be made, as
provided in the Rights Agreement.

 

No holder of this Rights Certificate, as
such, shall be entitled to vote or receive dividends or be deemed for any
purpose the holder of shares of Preferred Stock or of any other securities of
the Company which may at any time be issuable on the exercise hereof, nor shall
anything contained in the Rights Agreement or herein be construed to confer
upon the holder hereof, as such, any of the rights of a stockholder of the
Company or any right to vote for the election of directors or upon any matter
submitted to stockholders at any meeting thereof, or to give or withhold
consent to any corporate action, or to receive notice of meetings or other actions
affecting stockholders (except as provided in the Rights Agreement), or to
receive dividends or subscription rights, or otherwise, until the Right or
Rights evidenced by this Rights Certificate shall have been exercised as
provided in the Rights Agreement.

 

B-2

 

This Rights Certificate shall not be valid or
obligatory for any purpose until it shall have been countersigned by the Rights
Agent.

 

WITNESS the facsimile signature of the proper
officers of the Company and its corporate seal.

 

	
  Attest:

  	
   

  	
  SIMPSON MANUFACTURING CO.,
  INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  By:

  	
   

  	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Title:

  	
   

  	
   

  	
  Title:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Countersigned:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  COMPUTERSHARE TRUST
  COMPANY, N.A.

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  By:

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Title:

  	
   

  	
   

  	
   

  

 

B-3

 

[Form of Reverse Side of Rights
Certificate]

 

FORM OF
ASSIGNMENT

 

(To be executed by the registered
holder if such

holder desires to transfer the Rights Certificate.)

 

FOR VALUE RECEIVED,
                                  
hereby sells, assigns and transfers unto 

 

 

(please print name and
address of transferee)

this Rights Certificate,
together with all right, title and interest therein, and does hereby
irrevocably constitute and appoint
                                  
Attorney, to transfer the within Rights Certificate on the books of the
within-named Company, with full power of substitution.

 

Dated: 
                              ,
        .

 

 

	
   

  	
   

  
	
   

  	
  Signature

  
	
  Medallion Signature
  Guaranteed:

  	
   

  

 

 

NOTICE

 

The signature on the
foregoing Assignment must correspond to the name as written upon the face of
this Rights Certificate in every particular, without alteration or enlargement
or any change whatsoever.

 

B-4

 

CERTIFICATE

 

The undersigned hereby certifies by checking
the appropriate boxes that:

 

(1)           the
Rights evidenced by this Rights Certificate [ 
] are [  ] are not being sold,
assigned and transferred by or on behalf of a Person who is or was an Acquiring
Person or an Affiliate or Associate of any such Acquiring Person (as such terms
are defined in the Rights Agreement); and

 

(2)           after
due inquiry and to the best knowledge of the undersigned, the undersigned [  ] did [ 
] did not acquire the Rights evidenced by this Rights Certificate from
any Person who is, was or subsequently became an Acquiring Person or an
Affiliate or Associate of an Acquiring Person.

 

Dated:
                                ,
          .

 

 

	
   

  	
   

  
	
   

  	
  Signature

  

 

 

NOTICE

 

The signature on the foregoing Certificate
must correspond to the name as written upon the face of this Rights Certificate
in every particular, without alteration or enlargement or any change
whatsoever.

 

B-5

 

FORM OF
ELECTION TO PURCHASE

 

(To be executed if holder desires to

exercise the Rights Certificate pursuant to

Section 11(a)(ii) of the Rights Agreement.)

 

To Simpson Manufacturing Co., Inc.:

 

The undersigned hereby irrevocably elects to
exercise
                        
Rights represented by this Rights Certificate to purchase the shares of
Preferred Stock (or such other securities of the Company) issuable upon the
exercise of the Rights and requests that certificates for such shares be issued
in the name of:

 

	
   

  
	
   

  
	
   

  
	
  (Please
  print full name and address)

  
	
   

  
	
  Social security or other
  identifying number:

  	
   

  

 

The Rights Certificate indicating the
balance, if any, of such Rights which may still be exercised pursuant to Section 11(a)(ii) of
the Rights Agreement shall be returned to the undersigned unless such Person
requests that the Rights Certificate be registered in the name of and delivered
to (complete only if Rights Certificate is to be registered in a name other
than the undersigned):

 

	
   

  
	
   

  
	
   

  
	
  (Please print full name
  and address)

  
	
   

  
	
  Social security or other
  identifying number:

  	
   

  
	
   

  
	
  Dated: 
                                ,
            .

  
	
   

  
	
   

  
	
   

  	
   

  
	
   

  	
  Signature

  
	
  Medallion Signature
  Guaranteed:

  	
   

  

 

 

NOTICE

 

The signature on the foregoing Election to
Purchase must correspond to the name as written upon the face of this Rights
Certificate in every particular, without alteration or enlargement or any
change whatsoever.

 

B-6

 

CERTIFICATE

 

The undersigned hereby certifies by checking
the appropriate boxes that:

 

(1)           the
Rights evidenced by this Rights Certificate [ 
] are [  ] are not being exercised
by or on behalf of a Person who is or was an Acquiring Person or an Affiliate
or Associate of any such Acquiring Person (as such terms are defined in the
Rights Agreement);

 

(2)           this
Rights Certificate [  ] is [  ] is not being sold, assigned and transferred
by or on behalf of a Person who is or was an Acquiring Person or an Affiliate
or Associate of any Acquiring Person (as such terms are defined in the Rights
Agreement); and

 

(3)           after
due inquiry and to the best knowledge of the undersigned, it [  ] did [ 
] did not acquire the Rights evidenced by this Rights Certificate from
any Person who is, was or subsequently became an Acquiring Person or an
Affiliate or Associate of an Acquiring Person.

 

Dated
                            ,
          .

 

 

	
   

  	
   

  
	
   

  	
  Signature

  

 

 

NOTICE

 

The signature on the foregoing Certificate
must correspond to the name as written upon the face of this Rights Certificate
in every particular, without alteration or enlargement or any change whatsoever.

 

B-7

 

FORM OF
ELECTION TO PURCHASE

 

(To be executed if holder desires to
exercise

the Rights Certificate other than pursuant to

Section 11(a)(ii) of the Rights Agreement)

 

To Simpson Manufacturing Co., Inc.:

 

The undersigned hereby irrevocably elects to
exercise
                  
Rights represented by this Rights Certificate to purchase the shares of
Preferred Stock (or such other securities of the Company or any other Person)
issuable upon the exercise of the Rights and requests that certificates for
such shares be issued in the name of:

 

	
   

  
	
   

  
	
   

  
	
  (Please
  print full name and address)

  
	
   

  
	
  Social security or other
  identifying number:

  	
   

  
	
   

  
	
  The Rights Certificate indicating the
  balance, if any, of such Rights which may still be exercised pursuant to
  Section 11(a)(ii) of the Rights Agreement shall be returned to the
  undersigned unless such Person requests that the Rights Certificate be
  registered in the name of and delivered to (complete only if Rights Certificate
  is to be registered in a name other than the undersigned):

  
	
   

  
	
   

  
	
   

  
	
   

  
	
  (Please
  print full name and address)

  
	
   

  
	
  Social security or other
  identifying number:

  	
   

  
	
   

  
	
  Dated:
                                ,
            .

  
	
   

  
	
   

  
	
   

  	
   

  
	
   

  	
  Signature

  
	
   

  	
   

  
	
  Medallion Signature Guaranteed:

  	
   

  
			

 

 

NOTICE

 

The signature on the
foregoing Election to Purchase must correspond to the name as written upon the
face of this Rights Certificate in every particular, without alteration or
enlargement or any change whatsoever.

 

B-8

 

CERTIFICATE

 

The undersigned hereby certifies by checking
the appropriate boxes that:

 

(1)           the
Rights evidenced by this Rights Certificate [ 
] are [  ] are not being sold,
assigned and transferred by or on behalf of a Person who is or was an Acquiring
Person or an Affiliate or Associate of an Acquiring Person (as such terms are
defined in the Rights Agreement); and

 

(2)           after
due inquiry and to the best knowledge of the undersigned, the undersigned [  ] did [ 
] did not acquire the Rights evidenced by this Rights Certificate from
any Person who is, was or subsequently became an Acquiring Person or an
Affiliate or Associate of an Acquiring Person.

 

Dated:
                          ,
          .

 

 

	
   

  	
   

  
	
   

  	
  Signature

  

 

 

NOTICE

 

The signature to the foregoing Certificate
must correspond to the name as written upon the face of this Rights Certificate
in every particular, without alteration or enlargement or any change
whatsoever.

 

B-9

 

EXHIBIT
C

 

[The following summary reflects the terms and conditions of the Rights
Agreement as in effect on July 30, 1999, and the circumstances at that
time.  This summary has not been updated
to reflect subsequent amendments of the Rights Agreement or any changed
circumstances.  No one should rely on
this summary for an understanding of the Rights Agreement or its requirements
or effects.]

 

SUMMARY
OF RIGHTS

 

As a precaution to ensure
that it continues to be able to take appropriate action to protect the interests
of Simpson Manufacturing Co., Inc. (the “Company”) and its stockholders,
the Company’s Board of Directors has adopted a Stockholder Rights Plan.  The Stockholder Rights Plan would help the
Board to maximize stockholder value in the event of a change of control of the
Company, and otherwise to resist actions that the Board considers likely to
injure the Company or its stockholders.

 

Integral to the plan is a
Rights dividend payable on shares of the Company’s Common Stock.  On July 29, 1999, the Board of Directors
declared a dividend distribution on each outstanding share of Common Stock of
one Right to purchase the Company’s Series A Participating Preferred
Stock.  The dividend was paid to
stockholders of record at the close of business on August 19, 1999.  No income was recognized by stockholders for
tax purposes on payment of the dividend. 
The Rights are not now exercisable, and it is not known at this time
whether they ever will be exercisable. 
No action can be taken by holders of Rights at this time.  The Rights will expire on the earlier of (1) July 29,
2009, or (2) redemption or exchange of the Rights as described below.

 

In general, until the Rights
are exercisable or are redeemed or exchanged or expire unexercised, each Right
is associated with and cannot be separated from the underlying share of Common
Stock on which the right was declared as a dividend.  Accordingly, until the Rights are separate
from the Common Stock, (1) each holder of outstanding shares of Common
Stock is also the holder of an equal number of Rights, (2) any sale or
other transfer of shares of Common Stock by a holder thereof also will cause a
transfer of the associated Rights, (3) no income or loss will be
recognized with respect to the sale of Rights incident to a sale of Common
Stock, and (4) no certificates will be issued to evidence ownership of the
Rights, but certificates for shares of Common Stock issued after the Record
Date will refer to the associated Rights. 
Until a Right is exercised, it confers no rights as a stockholder,
including, without limitation, the right to vote or to receive dividends.

 

The Rights will separate
from the Common Stock if there is a “Distribution Date.” A Distribution Date
would occur upon the earliest to happen of (1) a public announcement that
someone has become an “Acquiring Person,” meaning that such person (including
affiliated or associated persons or entities) has acquired, or obtained the
right to acquire, beneficial ownership of 15 percent or more of the outstanding
shares of Common Stock, other than as a result of repurchases of stock by the
Company, or (2) 10 days (unless such date is extended by the Board of
Directors) having elapsed following the commencement of (or a public
announcement of an intention to make) a tender offer or exchange offer that
would result in someone becoming an Acquiring Person.  If a Distribution Date occurs, the Rights
will become exercisable and separately tradable, and the Company will issue
certificates for the Rights as soon as possible.

 

The Preferred Stock
purchasable upon exercise of the Rights will be nonredeemable and junior to any
other series of preferred stock the Company may issue (unless otherwise
provided in the terms of such stock). 
Each share of Preferred Stock will have a preferential quarterly
dividend in an amount equal to 

 

C-1

 

1,000 times the dividend
declared on each share of Common Stock, but in no event less than $25.  In the event of liquidation, the holders of
shares of Preferred Stock will receive a preferred liquidation payment equal to
the greater of $1,000 or 1,000 times the payment made per each share of Common
Stock.

 

Each share of Preferred
Stock will have 1,000 votes, voting together with the shares of Common
Stock.  In the event of any merger,
consolidation or other transaction in which shares of Common Stock are
exchanged, each share of Preferred Stock will be entitled to receive 1,000
times the amount and type of consideration received per share of Common Stock.  The rights of the Preferred Stock as to
dividends, liquidation and voting, and in the event of mergers and
consolidations, are protected by customary anti-dilution provisions.

 

The amount of Preferred
Stock that the holder of a Right is entitled to receive upon exercise of a
Right and the Purchase Price payable upon exercise of a Right are both subject
to adjustment.  Initially, the Purchase
Price is $200 per Right.  If no one has yet
become an Acquiring Person, payment of the Purchase Price entitles the holder
of a Right to receive only one one-thousandth of a share of Preferred
Stock.  If someone has become an
Acquiring Person, however, payment of the Purchase Price entitles the holder to
receive a number of one one-thousandth shares having a value, based on the then
current market value of the Common Stock, equal to two times the Purchase
Price.  In addition, if someone has
become an Acquiring Person, and thereafter the Company is involved in a merger
or other business combination trans-action, a holder of a Right also will be
able to acquire, upon payment of the Purchase Price, Common Stock of the
Company or its successor having a value, based on the market value of the
Company or its successor at the time of the transaction, equal to twice the
value of the Purchase Price.  Some
limitations apply to the timing of exercise of the Rights, and any Rights
belonging to an Acquiring Person are null and void.

 

The Board of Directors may
redeem the Rights in whole, but not in part, at the Redemption Price of $0.01
per Right, at any time before there is an Acquiring Person.  After there is an Acquiring Person, the
Rights may be redeemed only in very limited circumstances.  However, the Board of Directors may in some
cases also exchange all or part of the then outstanding and exercisable Rights
(except for Rights that have become void) for shares of Common Stock at a rate
of one share of Common Stock (or substitute consideration) per Right.  Upon redemption or exchange, the right to
exercise the Rights will terminate and the only right of the holders of Rights
will be to receive the Redemption Price or the exchange consideration, as
applicable.

 

A full description of the
Rights is set forth in the Rights Agreement between Simpson Manufacturing Co., Inc.
and the Rights Agent, BankBoston, N.A.  A
copy of the Rights Agreement has been filed with the Securities and Exchange
Commission as an Exhibit to a Registration Statement on Form 8-A.  A copy of the Rights Agreement is available
free by writing the Corporate Secretary, Simpson Manufacturing Co., Inc.,
4637 Chabot Drive, Suite 200, P.O. Box 10789, Pleasanton, CA  94588-0789. 
The Company and the Rights Agent retain broad authority to amend the
Rights Agreement; however, following any Distribution Date any amendment may
not adversely affect the interests of holders of Rights.  This summary description
of the Rights does not purport to be complete and is qualified in its entirety
by reference to the Rights Agreement.

 

C-2Exhibit 4.1

 

EXECUTION VERSION

 

 

INTERNATIONAL GAME TECHNOLOGY

 

As Issuer

 

AND

 

WELLS FARGO BANK, NATIONAL ASSOCIATION

 

As Trustee

 

 

INDENTURE

 

Dated as of June 15, 2009

 

 

SENIOR DEBT SECURITIES

 

 

 

CROSS-REFERENCE TABLE(1)

 

	
  SECTION OF
  

  TRUST INDENTURE 

  ACT OF 1939, AS AMENDED

  	
   

  	
  SECTION OF 

  INDENTURE

  
	
  310(a)

  	
   

  	
  7.10

  
	
  310(b)

  	
   

  	
  7.10

  
	
  311(a)

  	
   

  	
  7.11

  
	
  311(b)

  	
   

  	
  7.11

  
	
  312(a)

  	
   

  	
  5.1

  
	
  312(b)

  	
   

  	
  5.2(c)

  
	
  312(c)

  	
   

  	
  5.2(c)

  
	
  313(a)

  	
   

  	
  7.6

  
	
  313(b)

  	
   

  	
  7.6

  
	
  313(c)

  	
   

  	
  7.6

  
	
  313(d)

  	
   

  	
  7.6

  
	
  314(a)

  	
   

  	
  5.3

  
	
   

  	
   

  	
  13.12

  
	
  314(c)

  	
   

  	
  13.7(a)

  
	
  314(e)

  	
   

  	
  13.7(b)

  
	
  315(a)

  	
   

  	
  7.1(b)

  
	
  315(b)

  	
   

  	
  7.5

  
	
  315(c)

  	
   

  	
  7.1(a)

  
	
  315(d)

  	
   

  	
  7.1(c)

  
	
  315(e)

  	
   

  	
  6.7

  
	
  316(a)

  	
   

  	
  6.6

  
	
   

  	
   

  	
  8.4

  
	
  316(b)

  	
   

  	
  6.4

  
	
  316(c)

  	
   

  	
  8.1

  
	
  317(a)

  	
   

  	
  6.2

  
	
  317(b)

  	
   

  	
  4.2

  
	
  318(a)

  	
   

  	
  13.9

  

 

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

 

2

 

TABLE OF CONTENTS

 

	
  ARTICLE I .  DEFINITIONS

  	
  6

  
	
   

  	
   

  	
   

  
	
  Section 1.1

  	
  Definition of Terms

  	
  6

  
	
  Section 1.2

  	
  Incorporation by Reference of Trust Indenture Act

  	
  10

  
	
  Section 1.3

  	
  Rules of Construction

  	
  11

  
	
   

  	
   

  	
   

  
	
  ARTICLE II .  ISSUE,
  DESCRIPTION, TERMS, EXECUTION, REGISTRATION AND EXCHANGE OF SECURITIES

  	
  11

  
	
   

  	
   

  	
   

  
	
  Section 2.1

  	
  Designation and Terms of Securities

  	
  11

  
	
  Section 2.2

  	
  Form of Securities and Trustee’s Certificate

  	
  14

  
	
  Section 2.3

  	
  Denominations; Provisions for Payment

  	
  14

  
	
  Section 2.4

  	
  Execution and Authentications

  	
  16

  
	
  Section 2.5

  	
  Registration of Transfer and Exchange

  	
  16

  
	
  Section 2.6

  	
  Temporary Securities

  	
  18

  
	
  Section 2.7

  	
  Mutilated, Destroyed, Lost of Stolen Securities

  	
  18

  
	
  Section 2.8

  	
  Cancellation

  	
  19

  
	
  Section 2.9

  	
  Benefits of Indenture

  	
  19

  
	
  Section 2.10

  	
  Authenticating Agent

  	
  19

  
	
  Section 2.11

  	
  Global Securities

  	
  20

  
	
  Section 2.12

  	
  CUSIP and ISIN Numbers

  	
  21

  
	
   

  	
   

  	
   

  
	
  ARTICLE III .  REDEMPTION
  OF SECURITIES AND SINKING FUND PROVISIONS

  	
  21

  
	
   

  	
   

  	
   

  
	
  Section 3.1

  	
  Redemption

  	
  21

  
	
  Section 3.2

  	
  Notice of Redemption

  	
  21

  
	
  Section 3.3

  	
  Payment upon Redemption

  	
  23

  
	
  Section 3.4

  	
  Sinking Fund

  	
  23

  
	
  Section 3.5

  	
  Satisfaction of Sinking Fund Payments with Securities

  	
  23

  
	
  Section 3.6

  	
  Redemption of Securities for Sinking Fund

  	
  24

  
	
   

  	
   

  	
   

  
	
  ARTICLE IV .  COVENANTS

  	
  24

  
	
   

  	
   

  	
   

  
	
  Section 4.1

  	
  Payment of Principal, Premium and Interest

  	
  24

  
	
  Section 4.2

  	
  Paying Agent and Registrar

  	
  24

  
	
  Section 4.3

  	
  Appointment to Fill Vacancy in Office of the Trustee

  	
  26

  
	
  Section 4.4

  	
  Compliance with Consolidation Provisions

  	
  26

  
	
  Section 4.5

  	
  Compliance Certificate

  	
  26

  
	
   

  	
   

  	
   

  
	
  ARTICLE V  .  SECURITYHOLDERS’ LISTS AND REPORTS BY
  THE COMPANY AND THE TRUSTEE

  	
  27

  
	
   

  	
   

  	
   

  
	
  Section 5.1

  	
  Company to Furnish Trustee Names and Addresses of
  Securityholders

  	
  27

  
	
  Section 5.2

  	
  Preservation of Information, Communications with
  Securityholders

  	
  27

  
	
  Section 5.3

  	
  Reports by the Company

  	
  27

  

 

3

 

	
  ARTICLE VI .  REMEDIES
  OF THE TRUSTEE AND SECURITYHOLDERS ON EVENT OF DEFAULT

  	
  28

  
	
   

  	
   

  	
   

  
	
  Section 6.1

  	
  Events of Default

  	
  28

  
	
  Section 6.2

  	
  Collection of Indebtedness and Suits for Enforcement by
  Trustee

  	
  30

  
	
  Section 6.3

  	
  Application of Moneys Collected

  	
  31

  
	
  Section 6.4

  	
  Limitation on Suits

  	
  31

  
	
  Section 6.5

  	
  Rights and Remedies Cumulative, Delay or Omission Not a
  Waiver

  	
  32

  
	
  Section 6.6

  	
  Control by Securityholders

  	
  33

  
	
  Section 6.7

  	
  Undertaking to Pay Costs

  	
  33

  
	
   

  	
   

  	
   

  
	
  ARTICLE VII .   CONCERNING THE TRUSTEE

  	
  34

  
	
   

  	
   

  	
   

  
	
  Section 7.1

  	
  Duties of Trustee

  	
  34

  
	
  Section 7.2

  	
  Rights of Trustee

  	
  35

  
	
  Section 7.3

  	
  Individual Rights of Trustee

  	
  36

  
	
  Section 7.4

  	
  Trustee’s Disclaimer

  	
  36

  
	
  Section 7.5

  	
  Notice of Defaults

  	
  36

  
	
  Section 7.6

  	
  Reports by Trustee to Holders

  	
  36

  
	
  Section 7.7

  	
  Compensation and Indemnity

  	
  37

  
	
  Section 7.8

  	
  Replacement of Trustee

  	
  38

  
	
  Section 7.9

  	
  Successor Trustee by Merger

  	
  39

  
	
  Section 7.10

  	
  Eligibility; Disqualification

  	
  39

  
	
  Section 7.11

  	
  Preferential Collection of Claims Against Company

  	
  39

  
	
  Section 7.12

  	
  Trustee’s Application for Instructions from the Company

  	
  39

  
	
  Section 7.13

  	
  Reports by Trustee to Gaming Authorities

  	
  40

  
	
  Section 7.14

  	
  Maintenance of Office in The City of New York

  	
  40

  
	
  Section 7.15

  	
  Patriot Act

  	
  40

  
	
   

  	
   

  	
   

  
	
  ARTICLE VIII .  CONCERNING
  THE SECURITYHOLDERS

  	
  40

  
	
   

  	
   

  	
   

  
	
  Section 8.1

  	
  Evidence of Action by Securityholders

  	
  40

  
	
  Section 8.2

  	
  Proof of Execution by Securityholders

  	
  41

  
	
  Section 8.3

  	
  Who May Be Deemed Owners

  	
  41

  
	
  Section 8.4

  	
  Certain Securities Owned By Company Disregarded

  	
  41

  
	
  Section 8.5

  	
  Actions Binding on Future Securityholders

  	
  42

  
	
   

  	
   

  	
   

  
	
  ARTICLE IX .  SUPPLEMENTAL
  INDENTURES

  	
  42

  
	
   

  	
   

  	
   

  
	
  Section 9.1

  	
  Supplemental Indentures Without the Consent of
  Securityholders

  	
  42

  
	
  Section 9.2

  	
  Supplemental Indentures With Consent of Securityholders

  	
  44

  
	
  Section 9.3

  	
  Effect of Supplemental Indentures

  	
  45

  
	
  Section 9.4

  	
  Securities Affected By Supplemental Indentures

  	
  45

  
	
  Section 9.5

  	
  Execution of Supplemental Indentures

  	
  45

  
	
   

  	
   

  	
   

  
	
  ARTICLE X .  SUCCESSOR
  ENTITY

  	
  46

  
	
   

  	
   

  	
   

  
	
  Section 10.1

  	
  Company May Consolidate Etc.

  	
  46

  
	
  Section 10.2

  	
  Successor Entity Substituted

  	
  46

  
	
  Section 10.3

  	
  Evidence of Consolidation, Etc. to Trustee

  	
  47

  

 

4

 

	
   

  	
   

  	
   

  
	
  ARTICLE XI .  SATISFACTION
  AND DISCHARGE

  	
  47

  
	
   

  	
   

  	
   

  
	
  Section 11.1

  	
  Applicability of Article; Company’s Option to Effect
  Defeasance or Covenant Defeasance

  	
  47

  
	
  Section 11.2

  	
  Defeasance and Discharge

  	
  47

  
	
  Section 11.3

  	
  Covenant Defeasance

  	
  48

  
	
  Section 11.4

  	
  Conditions to Defeasance or Covenant Defeasance

  	
  48

  
	
  Section 11.5

  	
  Reinstatement

  	
  49

  
	
  Section 11.6

  	
  Deposited Money and Government Obligations to be Held in
  Trust; Other Miscellaneous Provisions

  	
  50

  
	
  Section 11.7

  	
  Repayment to Company

  	
  50

  
	
   

  	
   

  	
   

  
	
  ARTICLE XII .  IMMUNITY
  OF INCORPORATORS, STOCKHOLDERS, OFFICERS AND DIRECTORS

  	
  51

  
	
   

  	
   

  
	
  Section 12.1

  	
  No Recourse

  	
  51

  
	
   

  	
   

  
	
  ARTICLE XIII .  MISCELLANEOUS
  PROVISIONS

  	
  51

  
	
   

  	
   

  
	
  Section 13.1

  	
  Effect on Successors and Assigns

  	
  51

  
	
  Section 13.2

  	
  Actions by Successors

  	
  51

  
	
  Section 13.3

  	
  Surrender of Company Powers

  	
  52

  
	
  Section 13.4

  	
  Notices

  	
  52

  
	
  Section 13.5

  	
  Governing Law

  	
  52

  
	
  Section 13.6

  	
  Treatment of Securities as Debt

  	
  52

  
	
  Section 13.7

  	
  Compliance Certificates and Opinions

  	
  52

  
	
  Section 13.8

  	
  Payments on Business Days

  	
  53

  
	
  Section 13.9

  	
  Conflict with Trust Indenture Act

  	
  53

  
	
  Section 13.10

  	
  Counterparts

  	
  53

  
	
  Section 13.11

  	
  Separability

  	
  53

  
	
  Section 13.12

  	
  Compliance Certificates

  	
  53

  

 

5

 

INDENTURE

 

INDENTURE, dated as of June 15,
2009, among INTERNATIONAL GAME TECHNOLOGY, a Nevada corporation (the “Company”), and Wells Fargo Bank, National
Association, a national banking association, as trustee (the “Trustee”).

 

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

 

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

 

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

 

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

 

ARTICLE I.

 

DEFINITIONS

 

Section 1.1                                      Definition of Terms.

 

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

 

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

 

“Authorized Officer”, when used with respect
to the Company, means the Chairman of the Board, the Vice Chairman, the Chief
Executive Officer, the President, the Chief Financial Officer, any Executive
Vice President, any Senior Vice President, any Vice President, the Treasurer,
the Controller or the Secretary or any Assistant Treasurer, Assistant
Controller or Assistant Secretary of the Company.

 

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

 

6

 

“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 one or
more resolutions certified by the Secretary or an Assistant Secretary of the
Company to have been duly adopted by the Board of Directors, or such committee
of the Board of Directors of officers of the Company to which authority to act
on behalf of the Board of Directors has been delegated, and to be in full force
and effect on the date of such certification, and delivered to the Trustee.

 

“Business Day” means, with respect to any
series of Securities, any weekday that is not a day on which banking
institutions in the City of New York are authorized or obligated to close.

 

“Capital Stock” for any entity means any and
all shares, interests, rights to purchase, warrants, options, participations or
other equivalents of or interests in (however designated) stock issued by that
corporation.

 

“Company” means International Game
Technology, a corporation duly organized and existing under the laws of the
State of Nevada, and, subject to the provisions of Article X, shall also
include its successors and assigns.

 

“Company Request” and “Company Order” mean, respectively, a
written request or order signed in the name of the Company by one or more
Authorized Officers of the Company, and delivered to the Trustee.

 

“Corporate Trust Office” means the corporate
trust office of the Trustee at which at any time the trust created by this
Indenture shall be administered, which office at the date hereof is located at
707 Wilshire Blvd, 17th Floor, Los Angeles, CA 90017, Attention:
Corporate Trust Department or such other address as the Trustee may designate
from time to time by notice to the Holders and the Company, or the corporate
trust office of any successor Trustee at which such trust shall be administered
(or such other address as a successor Trustee may designate from time to time
by notice to the Holders and the Company).

 

“Covenant Defeasance” shall have the meaning
set forth in Section 11.3.

 

“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.

 

“Defaulted Interest” shall have the meaning
set forth in Section 2.3.

 

“Defeasance” shall have the meaning set
forth in Section 11.2.

 

“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 Exchange Act, or other applicable statute or
regulation, which, in each case, shall be designated by the Company pursuant to
either Section 2.1 or 2.11.

 

“Event of Default” means, with respect to
Securities of a particular series, any event specified in Section 6.1,
continued for the period of time, if any, therein designated.

 

7

 

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

 

“GAAP” means generally accepted accounting
principles in the United States of America as in effect and, to the extent
optional, adopted by the Company, consistently applied.

 

“Gaming Authority” means the United States
federal government, any foreign government, or any state, county municipality
or other political subdivision or any agency or other governmental authority
thereof that now or hereafter has jurisdiction over all or any portion of the
gaming activities of the Company or any of its Subsidiaries.

 

“Gaming Law” means any law, statute,
ordinance, code, regulation, constitutional provision, rule, order, directive
or other enforcement requirement now or hereafter in existence of any Gaming
Authority.

 

“Gaming License” means any license,
qualification, finding of suitability, approval, franchise, or other
authorization of the Company and its Subsidiaries on the date of this Indenture
or thereafter required to own, lease, operate or otherwise conduct the gaming
business of the Company and its Subsidiaries, including all licenses granted
under any Gaming Laws.

 

“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 (a) direct obligations of the United States of America for the
payment of which its full faith and credit is pledged or (b) obligations
of a Person controlled or supervised by and acting as an agency or
instrumentality of the United States of America, the payment of which is
unconditionally guaranteed as a full faith and credit obligation by the United
States of America that, in either case, are not callable or redeemable at the
option of the issuer thereof, and shall also include a depositary receipt
issued by a bank (as defined in Section 3(a)(2) of the Securities
Act) 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.

 

“Holder” and “Holder of Securities” means a Securityholder.

 

“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.

 

8

 

“Officers’ Certificate” means a certificate
signed by any two Authorized Officers 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 13.7, if and to the extent
required by the provisions thereof.  An
Officers’ Certificate given pursuant to Section 13.12 shall be signed by
the principal financial or accounting Officer of the Company but need not
contain the statements provided for in Section 13.7.

 

“Opinion of Counsel” means an opinion in
writing subject to customary exceptions of legal counsel, who may be an
employee of or counsel for the Company and who is acceptable to the Trustee,
that is delivered to the Trustee in accordance with the terms hereof. Each such
opinion shall include the statements provided for in Section 13.7, if and
to the extent required by the provisions thereof.

 

“Outstanding,” when used with reference to
Securities of any series, means, subject to the provisions of Section 8.4, 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 III 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 2.7, unless
the Trustee and the Company receive proof satisfactory to them that the
replaced Security is held by a bona fide purchaser.

 

“Patriot Act” means the Uniting and
Strengthening America by Providing Appropriate Tools Required to Intercept and
Obstruct Terrorism Act of 2001, Pub. L. 107-56, signed into law October 26,
2001.

 

“Paying Agent” shall have the meaning set
forth in Section 4.2(a).

 

“Person” means any individual, corporation,
partnership, joint venture, association, joint-stock company, trust,
unincorporated organization, limited liability company or government or other
entity, and includes any syndicate or group that would be deemed to be a “person”
under Section 13(d)(3) of the Exchange Act.

 

“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 2.7
in lieu of a lost, destroyed or stolen Security shall be deemed to evidence the
same debt as the lost, destroyed or stolen Security.

 

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

 

“registered Holder” means a Securityholder.

 

“SEC” means the Securities and Exchange
Commission.

 

9

 

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

 

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

 

“Security Register” shall have the meaning
set forth in Section 4.2(a).

 

“Security Registrar” shall have the meaning
set forth in Section 4.2(a).

 

“Securityholder,” 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 Registrar kept for that purpose in accordance with the terms
of this Indenture.

 

“Stated Maturity”, when used with respect to
any security or any installment of principal thereof or interest thereon, means
the date specified in such Security or a coupon representing such installment
of interest as the fixed date on which the principal of such Security or such
installment of principal or interest is due and payable.

 

“Subsidiary” means a Person more than 50% of
the outstanding Voting Stock of which is owned, directly or indirectly, by the
Company or by one or more other Subsidiaries of the Company, or by the Company
and one or more other Subsidiaries of the Company.

 

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

 

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

 

“Trust Officer” means any officer within the
Corporate Trust Administration department of the Trustee (or any successor
group of the Trustee) with direct responsibility for the administration of this
Indenture and also means, with respect to a particular corporate trust matter
hereunder, any other officer of the Trustee to whom such matter is referred
because of his or her knowledge of and familiarity with the particular subject.

 

“Uniform Commercial Code” means the New York
Uniform Commercial Code as in effect from time to time.

 

“Voting Stock” of a Person means Capital
Stock of such Person of the class or classes pursuant to which the holders
thereof have the general voting power under ordinary circumstances to elect at
least a majority of the board of directors, managers or trustees of such Person
(irrespective of whether or not at the time Capital Stock of any other class or
classes shall have or might have voting power by reason of the happening of any
contingency).

 

Section 1.2                                      Incorporation by Reference of Trust
Indenture Act.

 

Whenever
this Indenture refers to a provision of the Trust Indenture Act, the provision
is incorporated by reference in and made a part of this Indenture.  The following Trust Indenture Act terms used
in this Indenture have the following meanings:

 

“Commission” means the SEC.

 

“indenture securities” means the Securities.

 

10

 

“indenture security holder” means a Holder.

 

“indenture to be qualified” means this
Indenture.

 

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

 

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

 

All
other Trust Indenture Act terms used in this Indenture that are defined by the
Trust Indenture Act, defined by Trust Indenture Act reference to another
statute or defined by SEC rule have the meanings assigned to them by such
definitions.

 

Section 1.3                                      Rules of Construction.

 

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

 

(2)           an
accounting term not otherwise defined has the meaning assigned to it and shall
be construed in accordance with GAAP;

 

(3)           “or” is not exclusive;

 

(4)           “including” means including, without
limitation;

 

(5)           words
in the singular include the plural, and words in the plural include the
singular; and

 

(6)           all
references to $, dollars, cash payments or money refer to United States
currency.

 

ARTICLE II.

 

ISSUE, DESCRIPTION, TERMS,
EXECUTION, REGISTRATION

AND EXCHANGE OF SECURITIES

 

Section 2.1                                      Designation and Terms of Securities.

 

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

 

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

 

(ii)           any limit upon the
aggregate principal amount of the Securities of that series that may be
authenticated and delivered under this Indenture (except for

 

11

 

Securities
authenticated and delivered upon registration of transfer of, or in exchange
for, or in lieu of, other Securities of that series);

 

(iii)          the date or dates
on which the principal of the Securities of the series is payable, any original
issue discount that may apply to the Securities of that series upon their
issuance, the principal amount due at maturity, and the place(s) of payment;

 

(iv)          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;

 

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

 

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

 

(vii)         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;

 

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

 

(ix)           the form of the
Securities of the series including the form of the certificate of
authentication for such series;

 

(x)            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;

 

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

 

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

 

12

 

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

 

(xiv)        if other than the
principal amount thereof, the portion of the principal amount of Securities of
the series which shall be payable upon declaration of acceleration of the
maturity thereof pursuant to Section 6.1;

 

(xv)         any additional or
different Events of Default or restrictive covenants (which may but shall not
have to include, among other restrictions, restrictions on the Company’s
ability or the ability of the Company’s Subsidiaries to: incur additional
indebtedness; issue additional securities; create liens; pay dividends or make
distributions in respect of their capital stock; redeem capital stock; place
restrictions on such Subsidiaries placing restrictions on their ability to pay
dividends, make distributions or transfer assets; make investments or other
restricted payments; sell or otherwise dispose of assets; enter into
sale-leaseback transactions; engage in transactions with stockholders and
affiliates; issue or sell stock of their Subsidiaries; or effect a
consolidation or merger) or financial covenants (which may include, among other
financial covenants, financial covenants that require the Company and its
Subsidiaries to maintain specified interest coverage, fixed charge, cash
flow-based or asset-based ratios) provided for with respect to the Securities
of the series;

 

(xvi)        if other than
dollars, the coin or currency in which the Securities of the series are
denominated (including, but not limited to, foreign currency);

 

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

 

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

 

(xix)         the form and terms
of any guarantee of any Securities of the series; and

 

(xx)          any other terms of
the series (which shall not be inconsistent with the provisions of this
Indenture, except as permitted by Article IX, but which may modify or delete
any provisions of this Indenture insofar as it applies to such series),
including any terms which may be required by or advisable under the laws of the
United States of America or regulations thereunder or advisable (as determined
by the Company) in connection with the marketing of Securities of the series.

 

13

 

All
Securities of any one series shall be substantially identical except as to
denomination and except as may otherwise be provided in, including without
limitation, the last paragraph of this Section 2.1 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. A series may be reopened for
issuances of additional Securities of such series or to establish additional
terms of such Securities.

 

Section 2.2                                      Form of Securities and Trustee’s
Certificate.

 

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

 

Section 2.3                                      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 2.1(x).
The Securities of a particular series shall bear interest payable on the dates
and at the rate specified with respect to that series. The Company shall make
all payments in respect of the Securities of any series on the dates and in the
manner provided in the Securities or pursuant to this Indenture.  Any amounts of cash to be given to the
Trustee or Paying Agent shall be deposited with the Trustee or Paying Agent by
10:00 a.m. (New York City time) by the Company on the required date.  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

 

14

 

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 3.3.

 

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:

 

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

 

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

 

Unless otherwise set
forth in a Board Resolution or one or more indentures supplemental hereto
establishing the terms of any series of Securities pursuant to Section 2.1
hereof, the term “regular record date” as used in this Section with respect to
a series of Securities and any Interest Payment Date for such series shall mean
either the fifteenth day of the month immediately preceding the month in which
an Interest Payment Date established for such series pursuant to Section 2.1
hereof shall occur, if such Interest Payment Date is the first day of a

 

15

 

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 2.1 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 and Sections 2.5 and 2.11, 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 2.4                                      Execution and Authentications.

 

The Securities shall be
signed on behalf of the Company by an Authorized Officer and, to the extent
necessary, under its corporate seal. 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 Authorized 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 an officer of the Company. To the extent a Company seal is necessary, the
Company seal 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 authentication, together with a written order of the Company for
the authentication and delivery of such Securities, signed by an Authorized
Officer, and the Trustee in accordance with such written order shall
authenticate and deliver such Securities.

 

In authenticating such
Securities and accepting the additional responsibilities under this Indenture
in relation to such Securities, the Trustee shall be entitled to receive, and
(subject to Section 7.1) shall be fully protected in relying upon, an Opinion
of Counsel and Officers’ Certificate 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 2.5                                      Registration of Transfer and Exchange.

 

(a)           Securities
of any series may be exchanged upon presentation thereof at the office of the
Security Registrar, for other Securities of such series of authorized denominations,

 

16

 

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

 

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

 

(c)           Except
as provided pursuant to Section 2.1 pursuant to a Board Resolution, and set
forth in an Officers’ Certificate, or established in one or more indentures
supplemental to this Indenture, no service charge shall be made for any
exchange or registration of transfer of Securities, or issue of new Securities
in case of partial repurchase or 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 2.6, Section
3.3(b) and Section 9.4 not involving any transfer.

 

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

 

(e)           Successive
registrations and registrations of transfers and exchanges as aforesaid may be
made from time to time as desired, and each such registration shall be noted on
the register for the Securities.

 

(f)            The
Security Registrar shall provide to the Trustee such information as the Trustee
may reasonably require in connection with the delivery by such Security
Registrar of Securities upon transfer or exchange of Securities.

 

(g)           If
any Security is held in trust by an agent or by a nominee, the Holder of record
of any Security may be required to disclose the identity of the beneficial
owner to Gaming Authorities.  A failure
to make such disclosure may be grounds for finding the Holder of record
unsuitable.  The Company is required to
render maximum assistance in determining the identity of the beneficial owner.

 

17

 

(h)           The
provisions of this Section 2.5 are, with respect to any Global Security,
subject to Section 2.11 hereof.

 

Section 2.6                                      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 of the Security Registrar, and
the Trustee shall authenticate and the Security Registrar 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 2.7                                      Mutilated, Destroyed, Lost of 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 requirements of Section 8-405 of the Uniform
Commercial Code shall be met and 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 

 

18

 

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 2.8                                      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 cancel
Securities held by the Trustee in accordance with its standard procedures and
applicable law and provide confirmation to the Company of such cancellation. 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 2.9                                      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, except Securities issued
pursuant to Section 2.7 hereof, 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

 

19

 

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 2.1 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 2.4, 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 2.5, the Global Security of a series may be
transferred, in whole but not in part and in the manner provided in Section 2.5,
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.  Nothing in
this Section 2.11(b) shall prohibit or render ineffective any transfer of a
beneficial interest in a Global Security effected in accordance with the other
provisions of this Indenture.

 

(c)           If
at any time the Depositary for a series of the Securities notifies the Company
that it is unwilling or unable to continue as Depositary for such series or if
at any time the Depositary for such series shall no longer be registered or in
good standing under the Exchange Act, or other applicable statute or
regulation, and a successor Depositary for such series is not appointed by the
Company within 90 days after the Company receives such notice or becomes aware
of such condition, as the case may be, or if an Event of Default has occurred
and is continuing and the Company has received a request from the Depositary,
this Section 2.11 shall no longer be applicable to the Securities of such
series and the Company will execute, and subject to Section 2.4, 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

 

20

 

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 2.4, 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.

 

Section 2.12                                CUSIP and ISIN Numbers.

 

The Company, in issuing the Securities, shall use
unrestricted CUSIP and ISIN numbers for such Securities (if then generally in
use).  The Trustee shall use CUSIP and
ISIN numbers in notices of redemption as a convenience to Holders; provided, however, that neither the
Company nor the Trustee shall have any responsibility for any defect in the
CUSIP or ISIN number that appears on any Security, check, advice of payment or
redemption notice, and any such notice may state that no representation is made
as to the correctness of such numbers either as printed on the Securities or as
contained in any notice of a redemption and that reliance may be placed only on
the other identification numbers printed on the Securities, and any such
redemption shall not be affected by any defect in or omission of such
numbers.  The Company shall promptly
notify the Trustee in the event of any change in the CUSIP or ISIN numbers.

 

ARTICLE III.

 

REDEMPTION OF SECURITIES
AND

SINKING FUND PROVISIONS

 

Section 3.1                                      Redemption.

 

The Company may redeem
the Securities of any series issued hereunder on and after the dates and in
accordance with the terms established for such series pursuant to Section 2.1
hereof.  The provisions of this Article III
may be modified, amended or replaced, in part or in their entirety, with
Securities of any series, by an Officers’ Certificate pursuant to a Board
Resolution or one or more indentures supplemental hereto, in each case in
accordance with Section 2.1 hereof.

 

Section 3.2                                      Notice of Redemption.

 

(a)           In
case the Company shall desire to exercise such right to redeem all or, as the
case may be, a portion of the Securities of any series in accordance with any
right the

 

21

 

Company reserved for itself to do so pursuant to Section
2.1 hereof, the Company shall, or shall cause the Trustee to, give notice of
such redemption to Holders of the Securities of such series to be redeemed by
mailing, first class postage prepaid (or, in the case of Securities held in
book-entry form, by electronic transmission), a notice of such redemption not
less than 30 days and not more than 60 days before (except in accordance with Section
11.2) 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 Paying Agent or as otherwise established in an indenture
supplemental hereto, 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 part shall specify the particular
Securities to be so redeemed.

 

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

 

(b)           If
less than all the Securities of a series are to be redeemed, the Company shall
give the Trustee at least 45 days’ notice 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
its chief executive officer, president or any senior vice president or vice
president, 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

 

22

 

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 3.3                                      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 2.3).

 

(b)           Upon
presentation of any Security of such series that is to be redeemed in part
only, the Company shall execute and the Trustee shall authenticate and the
office or agency where the Security is presented shall deliver to the Holder
thereof, at the expense of the 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 3.4                                      Sinking Fund.

 

If Securities of a series
provide for a sinking fund as contemplated by Section 2.1, the provisions of
Sections 3.4, 3.5 and 3.6 shall be applicable to any sinking fund for the
retirement of Securities of a series, except as otherwise specified as
contemplated by Section 2.1 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 3.5. 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 3.5                                      Satisfaction of Sinking Fund Payments
with Securities.

 

The Company (i) may
deliver Outstanding Securities of a series and (ii) may apply as a credit
Securities of a series that have been redeemed either at the election of the
Company pursuant to the terms of such Securities or through the application of
permitted optional sinking fund payments pursuant to the terms of such
Securities, in each case in

 

23

 

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 3.6                                      Redemption of Securities for Sinking
Fund.

 

Not less than 45 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 3.5 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 3.2 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
3.2. Such notice having been duly given, the redemption of such Securities
shall be made upon the terms and in the manner stated in Section 3.3.

 

ARTICLE IV.

 

COVENANTS

 

Section 4.1                                      Payment of Principal, Premium and
Interest.

 

The Company will duly and
punctually pay or cause to be paid the principal of (and premium, if any) and
interest on the Securities of that series at the time and place and in the
manner provided herein and established with respect to such Securities.
Payments of principal on the Securities may be made at the time provided herein
and established with respect to such Securities by check drawn on and mailed to
the address of the Securityholder entitled thereto as such address shall appear
in the Security Register, or by wire transfer. Payments of interest on the
Securities may be made at the time provided herein and established with respect
to such Securities by check mailed to the address of the Securityholder
entitled thereto as such address shall appear in the Security Register, or by
wire transfer.

 

Section 4.2                                      Paying Agent and Registrar.

 

(a)           The
Company shall maintain an office or agency where Securities may be presented
for registration of transfer or for exchange (“Security Registrar”), an office or agency where Securities may
be presented for payment (“Paying Agent”)
and an office or agency where notices to or upon the Company in respect of the
Securities and this Indenture may be served. 
The Company initially appoints the Trustee as Registrar and Paying Agent
in connection with the Securities, and each of the Corporate Trust Office of
the Trustee and the office or agency of the Trustee in Minneapolis, Minnesota,
to be such office or agency of the Company for the aforesaid purposes.  The Registrar shall keep a register for the
recordation of, and shall record, the names

 

24

 

and addresses of Holders of the Securities, the
Securities held by each Holder and the transfer and exchange of Securities (the
“Security Register”).  The entries in the Security Register shall be
conclusive, and the parties may treat each Person whose name is recorded in the
Security Register pursuant to the terms hereof as a Holder hereunder for all
purposes of this Indenture.  The Company
may have one or more co-registrars and one or more additional Paying Agents.

 

The Company will maintain in Minneapolis, Minnesota,
an office or agency of the Trustee, Registrar and Paying Agent where Securities
may be presented or surrendered for payment, where Securities may be
surrendered for registration of transfer, exchange, repurchase or redemption
and where notices and demands to or upon the Company in respect of the
Securities and this Indenture may be served. 
The office of Wells Fargo Bank, National Association, at 625 Marquette
Ave. Minneapolis, Minnesota 55402 (Attention: International Game Technology
Account Manager), shall initially be such office or agency for all of the
aforesaid purposes.  The Company shall
give prompt written notice to the Trustee of the location, and of any change in
the location, of any such office or agency (other than a change in the location
of the Corporate Trust Office of the Trustee). 
If at any time the Company shall fail to maintain any such required
office or agency or shall fail to furnish the Trustee with the address thereof,
such presentations, surrenders, notices and demands may be made or served at
the address of the Trustee set forth in Section 13.4.

 

(b)           The
Company shall enter into an appropriate agency agreement with any Registrar,
Paying Agent, or co-registrar not a party to this Indenture, which shall
incorporate the terms of the TIA.  The
agreement shall implement the provisions of this Indenture that relate to such
agent.  The Company shall notify the
Trustee of the name and address of any such agent.  If the Company fails to maintain a Registrar
or Paying Agent, the Trustee shall act as such and shall be entitled to
appropriate compensation therefor.  The
Company and any of its Subsidiaries may act as Paying Agent, Registrar or
co-registrar.

 

(c)           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:

 

(i)            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;

 

(ii)           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;

 

(iii)          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

 

25

 

(iv)          that it will perform
all other duties of Paying Agent as set forth in this Indenture.

 

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

 

Notwithstanding anything in this Section to the
contrary, the agreement to hold sums in trust as provided in this Section is
subject to the provisions of Section 11.7.

 

Section 4.3                                      Appointment to Fill Vacancy in Office of
the Trustee.

 

The Company, whenever
necessary to avoid or fill a vacancy in the office of Trustee, will appoint, in
the manner provided in Section 7.8, a Trustee, so that there shall at all times
be a Trustee hereunder.

 

Section 4.4                                      Compliance with Consolidation Provisions.

 

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

 

Section 4.5                                      Compliance Certificate.

 

The
Company shall deliver to the Trustee within 120 days after the end of each
fiscal year (beginning with the fiscal year ending September 30, 2009) of the
Company an Officers’ Certificate, stating whether or not to the best knowledge
of the signers thereof, the Company is in default in the performance and
observance of any of the terms, provisions and conditions of this Indenture
(without regard to any period of grace or requirement of notice provided
hereunder) and if the Company shall be in default, specifying all such defaults
and the nature and status thereof of which they may have knowledge.

 

26

 

ARTICLE V.

SECURITYHOLDERS’ LISTS AND REPORTS BY

THE COMPANY AND THE TRUSTEE

 

Section 5.1                                    Company to Furnish Trustee Names and
Addresses of Securityholders.

 

The Company will furnish
or cause to be furnished to the Trustee (a) on each regular record date
(as defined in Section 2.3) a list, in such form as the Trustee may
reasonably require, of the names and addresses of the Holders of each series of
Securities as of such regular record date, provided that the Company shall not
be obligated to furnish or cause to furnish such list at any time that the list
shall not differ in any respect from the most recent list furnished to the
Trustee by the Company and (b) at such other times as the Trustee may
request in writing within 30 days after the receipt by the Company of any such
request, a list of similar form and content as of a date not more than
15 days prior to the time such list is furnished; provided, however, that,
in either case, no such list need be furnished for any series for which the
Trustee shall be the Security Registrar.

 

Section 5.2                                    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 5.1 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 5.1 upon receipt of a new list so
furnished.

 

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

 

Section 5.3                                    Reports by the Company.

 

(a)                                  So long as any Security is Outstanding,
the Company shall furnish to the Trustee, within 15 days after the Company
files the same with the SEC, copies of the annual and quarterly reports and of
the information, documents and other reports (or copies of such portions of any
of the foregoing as the SEC may from time to time by rules and regulations
prescribe) that the Company is required to file with the SEC pursuant to Section 13
or Section 15(d) of the Exchange Act.

 

(b)                                 In the event the Company is at any time
no longer subject to the reporting requirements of Section 13 or 15(d) of
the Exchange Act, it shall continue to provide the Trustee with annual and
quarterly reports containing substantially the same information as would have
been required to be filed with the SEC had the Company continued to have been
subject to such 

 

27

 

reporting requirements.  In such event, such annual and quarterly
reports shall be provided at the times the Company would have been required to
provide reports had it continued to have been subject to such reporting
requirements.

 

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

 

ARTICLE VI.

REMEDIES OF THE TRUSTEE AND SECURITYHOLDERS

ON EVENT OF DEFAULT

 

Section 6.1                                    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:

 

(i)                                     the Company defaults in the payment of
any installment of interest upon any of the Securities of that series, as and
when the same shall become due and payable, and such default continues for a
period of 30 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;

 

(ii)                                  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;

 

(iii)                               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 2.1 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;

 

28

 

(iv)                              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

 

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

 

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

 

(c)                                  At any time after the principal of (and
premium, if any, on) and accrued and unpaid interest on the Securities of that
series shall have been so declared due and payable, and before any judgment or
decree for the payment of the moneys due shall have been obtained or entered as
hereinafter provided, the Holders of a majority in aggregate principal amount
of the Securities of that series then Outstanding hereunder, by written notice
to the Company and the Trustee, may rescind and annul such declaration and its
consequences if: (i) the Company has paid or deposited with the Trustee a
sum sufficient to pay all matured installments of interest upon all the
Securities of that series and the principal of (and premium, if any, on) any
and all Securities of that series that shall have become due otherwise than by
acceleration (with interest upon such principal and premium, if any, and, to the
extent that such payment is enforceable under applicable law, upon overdue
installments of interest, at the rate per annum expressed in the Securities of
that series to the date of such payment or deposit) and the amount payable to
the Trustee under Section 7.7, and (ii) any and all Events of Default
under the Indenture with respect to such series, other than the nonpayment of
principal on (and premium, if any, on) and accrued and unpaid interest on
Securities of that series that shall not have become due by their terms, shall
have been remedied or waived as provided in Section 6.6.

 

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 

 

29

 

shall have been determined adversely to the Trustee,
then and in every such case, subject to any determination in such proceedings,
the Company and the Trustee shall be restored respectively to their former
positions and rights hereunder, and all rights, remedies and powers of the
Company and the Trustee shall continue as though no such proceedings had been
taken.

 

Section 6.2                                    Collection of Indebtedness and Suits for
Enforcement by Trustee.

 

(a)                                  The Company covenants that (i) in
case it shall default in the payment of any installment of interest on any of
the Securities of a series, and such default shall have continued for a period
of 90 Business Days, or (ii) in case it shall default in the payment of
the principal of (or premium, if any, on) any of the Securities of a series
when the same shall have become due and payable, whether upon maturity of the
Securities of a series or upon redemption or upon declaration or otherwise, or
in any payment required by any sinking or analogous fund established with
respect to that series as and when the same shall have become due and payable,
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 7.7.

 

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

 

(c)                                  In case of any receivership, insolvency,
liquidation, bankruptcy, reorganization, readjustment, arrangement, composition
or judicial proceedings affecting the Company, or its creditors or property,
the Trustee shall have power to intervene in such proceedings and take any
action therein that may be permitted by the court and shall (except as may be
otherwise provided by law) be entitled to file such proofs of claim and other
papers and documents as may be necessary or advisable in order to have the
claims of the Trustee and of the Holders of Securities of such series allowed
for the entire amount due and payable by the Company under the Indenture at the
date of institution of such proceedings and for any additional amount that may
become due and payable by the Company after such date, and to collect and
receive any moneys or other property payable or deliverable on any such claim,
and to distribute the same after the deduction of the amount payable to the
Trustee under Section 7.6; 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 7.7.

 

30

 

(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 7.7, be for the ratable benefit of the
Holders of the Securities of such series.

 

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

 

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

 

Section 6.3                                    Application of Moneys Collected.

 

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

 

FIRST: To the payment of
amounts payable to the Trustee under Section 7.7;

 

SECOND: To the payment to
Holders of Securities of the amounts then due and unpaid upon Securities of
such series for principal (and premium, if any), amounts payable upon
redemption or repurchase of the Securities, 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; and

 

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

 

The Trustee may fix a
record date and payment date for any payment to Holders pursuant to this Section 6.3.  At least 15 days before such record date, the
Company shall mail to each Holder and the Trustee a notice that states the
record date, the payment date and the amount to be paid.

 

Section 6.4                                    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 

 

31

 

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 25% or more in aggregate
principal amount of the Securities of such series then Outstanding shall have
made written request upon the Trustee to institute such action, suit or
proceeding in its own name as Trustee hereunder;

 

(iii)                               such Holder or Holders shall have offered to the
Trustee such reasonable indemnity as it may require against the costs, expenses
and liabilities to be incurred therein or thereby;

 

(iv)                              the Trustee for 90 days after its
receipt of such notice, request and offer of indemnity, shall have failed to
institute any such action, suit or proceeding and

 

(v)                                 during such 90 day period, the
Holders of a majority in principal amount of the Securities of that series then
Outstanding do not give the Trustee a direction inconsistent with the request.

 

Notwithstanding anything
contained herein to the contrary or any other provisions of this Indenture, the
right of any Holder of any Security to receive payment of the principal of (and
premium, if any) and interest on such Security, as therein provided, on or
after the respective due dates expressed in such Security (or in the case of
redemption, on the redemption date), or to institute suit for the enforcement
of any such payment on or after such respective dates or redemption date, shall
not be impaired or affected without the consent of such Holder and by accepting
a Security hereunder it is expressly understood, intended and covenanted by the
taker and Holder of every Security of such series with every other such taker
and Holder and the Trustee, that no one or more Holders of Securities of such
series shall have any right in any manner whatsoever by virtue or by availing
of any provision of this Indenture to affect, disturb or 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 6.5                                    Rights and Remedies Cumulative, Delay or
Omission Not a Waiver.

 

(a)                                  Except as otherwise provided in Section 2.7,
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.

 

32

 

(b)                                 No delay or omission of the Trustee or of
any Holder of any of the Securities to exercise any right or power accruing
upon any Event of Default occurring and continuing as aforesaid shall impair
any such right or power, or shall be construed to be a waiver of any such
default or an acquiescence therein; and, subject to the provisions of Section 6.4,
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 6.6                                    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 8.4, 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. Subject to the provisions of Section 7.1,
the Trustee shall have the right to decline to follow any such direction if the
Trustee in good faith shall, by a Trust Officer or officers of the Trustee,
determine that the proceeding so directed, subject to the Trustee’s duties
under the Trust Indenture Act, would involve the Trustee in personal liability
or might be unduly prejudicial to the Securityholders not involved in the
proceeding. The Holders of a majority in aggregate principal amount of the
Securities of any series at the time Outstanding affected thereby, determined
in accordance with Section 8.4, 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 2.1 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 6.1(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 6.7                                    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 

 

33

 

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 7.1                                    Duties of Trustee.

 

(a)                                  If an Event of Default has occurred and
is continuing, the Trustee shall exercise the rights and powers vested in it by
this Indenture and use the same degree of care and skill in its exercise as a
prudent Person would exercise or use under the circumstances in the conduct of
such Person’s own affairs.

 

(b)                                 Except during the continuance of an Event
of Default:

 

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

 

(ii)                                  in the absence of bad faith on its part,
the Trustee may conclusively rely, as to the truth of the statements and the
correctness of the opinions expressed therein, upon certificates or opinions
furnished to the Trustee and conforming to the requirements of this Indenture.

 

(c)                                  The Trustee may not be relieved from
liability for its own negligent action, its own negligent failure to act or its
own willful misconduct, except that:

 

(i)                                     this paragraph does not limit the effect
of Section 7.1(b);

 

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

 

(iii)                               the Trustee shall not be liable with respect to any
action it takes or omits to take in good faith in accordance with a direction
received by it pursuant to Section 6.6.

 

(d)                                 Every provision of this Indenture that in
any way relates to the Trustee is subject to Sections 7.1 (a), (b) and
(c).

 

(e)                                  The Trustee shall not be liable for
interest on any money received by it.

 

(f)                                    Money held in trust by the Trustee need
not be segregated from other funds except to the extent required by law.

 

34

 

(g)           No
provision of this Indenture shall require the Trustee to expend or risk its own
funds or otherwise incur financial liability in the performance of any of its
duties hereunder or in the exercise of any of its rights or powers.

 

(h)           Every
provision of this Indenture relating to the conduct or affecting the liability
of or affording protection to the Trustee shall be subject to the provisions of
this Article VII and to the provisions of the TIA, and the provisions of
this Article VII shall apply to the Trustee in its role as Registrar and
Paying Agent.

 

(i)            The
Trustee shall not be deemed to have notice of a Default or an Event of Default
unless (i) a Trust Officer of the Trustee has received written notice
thereof from the Company or any Holder or (ii) a Trust Officer shall have
actual knowledge thereof.

 

Section 7.2                                    Rights of Trustee.

 

(a)           The
Trustee may conclusively rely on any document believed by it to be genuine and
to have been signed or presented by the proper Person.  The Trustee need not investigate any fact or
matter stated in the document.  The
Trustee may, however, in its discretion make such further inquiry or
investigation into such facts or matters as it may see fit and, if the Trustee
shall determine to make such further inquiry or investigation, it shall be
entitled to examine the books, records and premises of the Company, personally
or by agent or attorney at the expense of the Company and shall incur no
liability of any kind by reason of such inquiry or investigation.

 

(b)           Before
the Trustee acts or refrains from acting, it shall be entitled to receive an
Officers’ Certificate and an Opinion of Counsel.  The Trustee shall not be liable for any
action it takes or omits to take in good faith in reliance on the Officers’
Certificate or Opinion of Counsel.

 

(c)           The
Trustee may act through agents, attorneys or custodians and shall not be
responsible for the misconduct or negligence of any agent, attorney or
custodian appointed with due care.

 

(d)           The
Trustee shall not be liable for any action it takes or omits to take in good
faith that it believes to be authorized or within its rights or powers;
provided, however, that the Trustee’s conduct does not constitute willful
misconduct or negligence.

 

(e)           The
Trustee may consult with counsel of its own selection, and the advice or
opinion of counsel with respect to legal matters relating to this Indenture and
the Securities shall be full and complete authorization and protection from
liability in respect to any action taken, omitted or suffered by it hereunder
in good faith and in accordance with the advice or opinion of such counsel.

 

(f)            The
permissive rights of the Trustee to do things enumerated in this Indenture
shall not be construed as a duty unless so specified herein.

 

(g)           The
Trustee shall be under no obligation to exercise any of the rights or powers
vested in it by this Indenture at the request or direction of any of the
Holders pursuant to 

 

35

 

this Indenture, unless such Holders shall have offered
to the Trustee security or indemnity satisfactory to the Trustee against the
costs, expenses and liabilities that might be incurred by it in compliance with
such request or direction.

 

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

 

(i)            The
Trustee may request that the Company deliver an Officers’ Certificate setting
forth the names of individuals and/or titles of officers authorized at such
time to take specified actions pursuant to this Indenture, which Officers’
Certificate may be signed by any person authorized to sign an Officers’
Certificate, including any person specified as so authorized in any such
certificate previously delivered and not superseded.

 

Section 7.3                                    Individual Rights of Trustee.

 

The Trustee in its individual or any other capacity
may become the owner or pledgee of Securities and may otherwise deal with the
Company or its Affiliates with the same rights it would have if it were not
Trustee.  Any Paying Agent, Registrar or
co-registrar may do the same with like rights. 
However, the Trustee must comply with Sections 7.10 and 7.11.

 

Section 7.4                                    Trustee’s Disclaimer.

 

The Trustee shall not be responsible for and makes no
representation as to the validity, priority or adequacy of this Indenture or
the Securities, it shall not be accountable for the Company’s use of the
proceeds from the Securities, and it shall not be responsible for any statement
of the Company in this Indenture or in any document issued in connection with
the sale of the Securities or in the Securities other than the Trustee’s
certificate of authentication.

 

Section 7.5                                    Notice of Defaults.

 

If a Default or Event of
Default occurs and is continuing and if it is actually known to a Trust Officer
of the Trustee, the Trustee shall mail to each Holder notice of the Default or
Event of Default within 90 days after it is known to a Trust Officer or written
notice of it is received by the Trustee. 
Except in the case of a Default described in Section 6.1(a)(i) or
6.1(a)(ii), the Trustee may withhold the notice if and so long as a committee
of its Trust Officers in good faith determines that withholding the notice is
in the interests of Holders.  The second
sentence of this Section 7.5 shall be in lieu of the proviso to TIA Section 315(b) and
such proviso is hereby expressly excluded from this Indenture, as permitted by
the TIA.  The Trustee shall not be deemed
to have knowledge of a Default unless a Trust Officer of the Trustee has
received written notice of such Default.

 

Section 7.6                                    Reports by Trustee to Holders.

 

As promptly as
practicable after each December 31 beginning with December 31, 2009,
and in any event prior to March 31 in each year thereafter, the Trustee
shall mail to each Holder a brief report dated as of December 31 each year
that complies with TIA Section 313(a), 

 

36

 

if and to the extent
required by such subsection.  The Trustee
shall also comply with TIA Section 313(b).

 

A copy of each report at
the time of its mailing to Holders shall be filed with the SEC and each stock
exchange (if any) on which the Securities are listed.  The Company agrees to notify promptly the
Trustee whenever the Securities become listed on any stock exchange and of any
delisting thereof.

 

Section 7.7                                    Compensation and Indemnity.

 

The Company shall pay to
the Trustee from time to time such compensation as shall be agreed upon from
time to time in writing for its services. 
The Trustee’s compensation shall not be limited by any law on
compensation of a trustee of an express trust. 
The Company shall reimburse the Trustee upon request for all reasonable
out-of-pocket fees and expenses incurred or made by it, including costs of
collection, in addition to the compensation for its services.  Such expenses shall include the reasonable
compensation, fees and expenses, disbursements and advances of the Trustee’s
agents, counsel, accountants and experts. 
Subject to the Trustee’s obligations under Section 7.1(a) hereof,
the Trustee shall be entitled to indemnification reasonably satisfactory to it
against any and all loss, liability, claim, damage or expense (including
reasonable attorneys’ fees and expenses) incurred by it in connection with the
acceptance and administration of this Indenture and this trust, its actions
taken or omitted to be taken hereunder and the performance of its duties
hereunder, including the costs and expenses of defending itself against any
claim (whether asserted by the Company, any Holder or any other Person).  The Trustee shall notify the Company promptly
in writing of any claim for which it may seek indemnity.  Failure by the Trustee to so notify the
Company of any claim for which it may seek indemnity of which a Trust Officer
has actually received written notice shall not relieve the Company of its
obligations hereunder except to the extent such failure shall have materially
prejudiced the Company.  The Company
shall defend the claim and the Trustee shall cooperate in the defense.  If the Trustee is advised by counsel in
writing that it may have available to it defenses which are in conflict with
the defenses available to the Company, then the Trustee may have separate
counsel and the Company shall pay the reasonable fees and expenses of such
counsel.  The Company need not reimburse
any expense or indemnify against any loss, liability or expense incurred by the
Trustee through the Trustee’s own willful misconduct or negligence, finally
adjudicated by a court of competent jurisdiction.  The Company need not pay for any settlement
made by the Trustee without the Company’s consent, such consent not to be
unreasonably withheld.  All
indemnifications and releases from liability granted hereunder to the Trustee
shall extend to its officers, directors, employees, agents, attorneys, custodians,
successors and assigns.

 

To secure the Company’s
payment obligations in this Section 7.7, the Trustee shall have a lien
prior to the Securities on all money or property held or collected by the
Trustee other than money or property held in trust to pay principal of and
interest on particular Securities.

 

The Company’s payment
obligations pursuant to this Section shall survive the resignation or
removal of the Trustee and the discharge of this Indenture.  In the event that the Trustee incurs expenses
after the occurrence of a Default specified in Section 6.1(a)(iv) or 

 

37

 

6.1(a)(v) with
respect to the Company, the expenses are intended to constitute expenses of
administration under the Bankruptcy Law.

 

Section 7.8                                    Replacement of Trustee.

 

The Trustee may resign at any time by so notifying the
Company and applicable Gaming Authorities in writing at least10 Business Days
prior to the proposed resignation.  The
Holders of a majority in aggregate principal amount of the Securities then
outstanding may remove the Trustee by so notifying the Trustee.  The Company shall remove the Trustee if:

 

(a)           the
Trustee fails to comply with Section 7.10;

 

(b)           the
Trustee is adjudged bankrupt or insolvent;

 

(c)           a
receiver or other public officer takes charge of the Trustee or its property;

 

(d)           the
Trustee otherwise becomes incapable of acting; or

 

(e)           the
Trustee becomes disqualified or is found unsuitable under any applicable Gaming
Law, or the Trustee’s relationship with the Company may, in the Company’s discretion,
jeopardize any material Gaming License or franchise or right or approval
granted thereto.

 

If the Trustee resigns,
is removed by the Company or by the Holders of a majority in aggregate
principal amount of the Securities then outstanding, or if a vacancy exists in
the office of Trustee for any reason (the Trustee in such event being referred
to herein as the retiring Trustee), the Company shall promptly appoint a
successor Trustee.

 

A successor Trustee shall
deliver a written acceptance of its appointment to the retiring Trustee and to
the Company.  Thereupon the resignation
or removal of the retiring Trustee shall become effective, and the successor
Trustee shall have all the rights, powers and duties of the Trustee under this
Indenture.  The successor Trustee shall
mail a notice of its succession to Holders. 
The retiring Trustee shall upon payment of all of its costs and the
costs of its agents and counsel promptly transfer all property held by it as
Trustee to the successor Trustee, subject to the lien provided for in Section 7.7.

 

If a successor Trustee
does not take office within 60 days after the retiring Trustee resigns or is
removed, the retiring Trustee or the Holders of 10% in aggregate principal
amount of the Securities then outstanding may petition at the expense of the
Company any court of competent jurisdiction for the appointment of a successor
Trustee.

 

If the Trustee fails to
comply with Section 7.10, any Holder who has been a bona fide Holder of a
Security for at least six months may petition any court of competent
jurisdiction for the removal of the Trustee and the appointment of a successor
Trustee.

 

Notwithstanding the
replacement of the Trustee pursuant to this Section, the Company’s obligations
under Section 7.7 shall continue for the benefit of the retiring Trustee.

 

38

 

Section 7.9                                    Successor Trustee by Merger.

 

If the Trustee consolidates with, merges or converts
into, or transfers all or substantially all its corporate trust business or
assets to, another corporation or banking association, the resulting, surviving
or transferee corporation or banking association without any further act shall
be the successor Trustee.

 

In case at the time such
successor or successors by merger, conversion or consolidation to the Trustee
shall succeed to the trusts created by this Indenture any of the Securities
shall have been authenticated but not delivered, any such successor to the
Trustee may adopt the certificate of authentication of any predecessor trustee,
and deliver such Securities so authenticated; and in case at that time any of
the Securities shall not have been authenticated, any such successor to the
Trustee may authenticate such Securities in the name of the successor to the
Trustee; and in all such cases such certificates shall have the full force that
it is anywhere in the Securities or in this Indenture provided that the
certificate of the Trustee shall have.

 

Section 7.10                              Eligibility; Disqualification.

 

The Trustee shall at all times satisfy the
requirements of TIA Section 310(a). 
The Trustee shall have (or, in the case of a corporation included in a
bank holding company system, the related bank holding company shall have) a
combined capital and surplus of at least $50,000,000 as set forth in its (or
its related bank holding company’s) most recent published annual report of
condition.  The Trustee shall comply with
TIA Section 310(b), subject to the penultimate paragraph thereof;
provided, however, that there shall be excluded from the operation of TIA Section 310(b)(1) any
indenture or indentures under which other securities or certificates of
interest or participation in other securities of the Company are outstanding if
the requirements for such exclusion set forth in TIA Section 310(b)(1) are
met.

 

Section 7.11                              Preferential Collection of Claims Against
Company.

 

The Trustee shall comply with TIA Section 311(a),
excluding any creditor relationship listed in TIA Section 311(b).  A Trustee who has resigned or been removed
shall be subject to TIA Section 311(a) to the extent indicated
therein.

 

Section 7.12                              Trustee’s Application for Instructions
from the Company.

 

Any application by the Trustee for written
instructions from the Company may, at the option of the Trustee, set forth in writing
any action proposed to be taken or omitted by the Trustee under this Indenture
and the date on and/or after which such action shall be taken or such omission
shall be effective.  The Trustee shall
not be liable to the Company for any action taken by, or omission of, the
Trustee in accordance with a proposal included in such application on or after
the date specified in such application (which date shall not be less than three
Business Days after the date any officer of the Company actually receives such
application, unless any such officer shall have consented in writing to any
earlier date) unless prior to taking any such action (or the effective date in
the case of any omission), the Trustee shall have received written instructions
in response to such application specifying the action to be taken or omitted.

 

39

 

Section 7.13                              Reports by Trustee to Gaming Authorities.

 

(a)           The
Trustee shall promptly report the names of all Holders of the Securities to any
Gaming Authorities upon request of such Gaming Authorities or the Company.  The Trustee shall provide to any Gaming
Authorities upon request of such Gaming Authorities or the Company, copies of
all written communications from the Trustee to all Holders, notice of any
Default, notice of any transfer or assignment of the Trustee’s rights under
this Indenture, any amendment to this Indenture or the Securities and notice of
any recession, annulment or waiver in respect of an Event of Default under this
Indenture.

 

(b)           The
Trustee shall cooperate with the Company in providing information relating to
the Securities or the Holders to any Gaming Authority pursuant to applicable
Gaming Laws.

 

Section 7.14                              Maintenance of Office in The City of New
York.

 

The Trustee agrees to maintain in the Borough of
Manhattan, City of New York an office or agency for purposes and notices other
than related to demands to or upon the Company in respect of payment on or
registration of transfer, exchange, repurchase, redemption or conversion of the
Securities. Such office shall initially be the office of the Trustee at 45
Broadway, 14th Floor, New York, New York 10006, Attention: Corporate Trust
Administration.

 

Section 7.15                              Patriot Act.

 

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

 

ARTICLE VIII.

CONCERNING THE SECURITYHOLDERS

 

Section 8.1                                    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 

 

40

 

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 8.2                                    Proof of Execution by Securityholders.

 

Subject to the
provisions of Section 7.1, proof of the execution of any instrument by a
Securityholder (such proof will not require notarization) or his agent or proxy
and proof of the holding by any Person of any of the Securities shall be
sufficient if made in the following manner:

 

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

 

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

 

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

 

Section 8.3                                    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
Registrar 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 2.3)
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 8.4                                    Certain Securities Owned By Company
Disregarded.

 

In determining whether
the Holders of the requisite aggregate principal amount of Securities of a
particular series have concurred in any direction, consent or waiver under this
Indenture, the Securities of that series that are owned by the Company or any
other obligor on the Securities of that series or by any Person directly or
indirectly controlling or controlled by or under common control with the
Company or any other obligor on the Securities of that series 

 

41

 

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 8.5                                    Actions Binding on Future
Securityholders.

 

At any time prior to (but
not after) the evidencing to the Trustee, as provided in Section 8.1, 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 8.2,
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 9.1                                    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 comply with 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 or in the Securities of any
series;

 

(b)           to
comply with Article X, including to evidence the succession of another
Person to the Company and the assumption by any such successor of the covenants
of the Company herein and in the Securities contained;

 

42

 

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

 

(d)           to
provide any security for or guarantees of the Securities of any series;

 

(e)           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; or

 

(f)            to
add any additional Events of Default;

 

(g)           to
add to, change or eliminate any of the provisions of this Indenture in respect
of one or more series of Securities; provided,
however, that any such addition, change or elimination not otherwise permitted
under this Section 9.1 shall (i) neither (A) apply to any
Security of any series created prior to the execution of such supplemental
indenture and entitled to the benefit of such provision nor (B) modify the
rights of the Securityholder of any such Security with respect to such
provision or (ii) become effective only when there is no such Security
outstanding;

 

(h)           to
provide for the issuance of and establish the form and terms and conditions of
the Securities of any series as provided in Section 2.1, 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;

 

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

 

(j)            to
comply with any requirements of the SEC or any successor in connection with the
qualification of this Indenture under the Trust Indenture Act; or

 

(k)           to
make any other provisions with respect to matters or questions arising under
this Indenture, provided that such action shall not adversely affect the
interests of the Securityholders of Securities of any series or any related
coupons in any material respect.

 

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 9.2.

 

After
an amendment under this Section 9.1 becomes effective, the Company shall
mail to Holders a notice briefly describing such amendment.  The failure to give such notice to all such
Holders, or any defect therein, shall not impair or affect the validity of an
amendment under this Section.

 

43

 

Section 9.2             Supplemental Indentures With Consent of
Securityholders.

 

With the consent
(evidenced as provided in Section 8.1) of the Holders of not less than a
majority in aggregate principal amount of the Securities of each series
affected by such supplemental indenture or indentures at the time Outstanding,
the Company, when authorized by a Board Resolution, and the Trustee may from
time to time and at any time enter into an indenture or indentures supplemental
hereto (which shall comply with 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 9.1
the rights of the Holders of the Securities of such series under this
Indenture; provided, however, that no such supplemental indenture shall,
without the consent of the Holders of each Security then Outstanding and
affected thereby,

 

(a)           reduce the aforesaid percentage of
Securities, the Holders of which are required to consent to any amendment,
supplement or waiver;

 

(b)           reduce the rate of interest or change the
time for payment of interest on such Securities or reduce any premium payable
upon the redemption thereof;

 

(c)           reduce the principal amount of such
Securities;

 

(d)           change the fixed maturity of such
Securities;

 

(e)           reduce the redemption or repurchase price
of such Securities or change the time at which the Securities may or must be
redeemed or repurchases;

 

(f)            make payments on such Securities payable
in currency other than as originally stated in such Securities;

 

(g)           impair the Securityholder’s right to
institute suit for the enforcement of any payment on the Securities;

 

(h)           make any change in the percentage of
principal amount of Securities necessary to waive compliance with some
provisions of the Indenture or to make any change in this provision for
modification;

 

(i)            waive a continuing default or event of
default regarding any payment on the Securities; or

 

(j)            adversely affect the repurchase
provisions of the Securities.

 

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.

 

After an amendment under
this Section 9.2 becomes effective, the Company shall mail to each Holder
a notice briefly describing the amendment.

 

44

 

Section 9.3             Effect of Supplemental Indentures.

 

Upon the execution of any
supplemental indenture pursuant to the provisions of this Article IX or of
Section 10.1, this Indenture shall, with respect to such series, be and be
deemed to be modified and amended in accordance therewith and the respective
rights, limitations of rights, obligations, duties and immunities under this
Indenture of the Trustee, the Company and the Holders of Securities of the
series affected thereby shall thereafter be determined, exercised and enforced
hereunder subject in all respects to such modifications and amendments, and all
the terms and conditions of any such supplemental indenture shall be and be
deemed to be part of the terms and conditions of this Indenture for any and all
purposes.

 

Section 9.4             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 IX
or of Section 10.1, may bear a notation in form approved by the Company,
provided such form meets the requirements of any securities exchange upon which
such series may be listed, as to any matter provided for in such supplemental
indenture. If the Company shall so determine, new Securities of that series so
modified as to conform, in the opinion of the Board of Directors, to any
modification of this Indenture contained in any such supplemental indenture may
be prepared by the Company, authenticated by the Trustee and delivered in
exchange for the Securities of that series then Outstanding.

 

Section 9.5             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 7.1, shall be entitled to 
receive an Officers’ Certificate and an Opinion of Counsel as conclusive
evidence that any supplemental indenture executed pursuant to this Article IX
is authorized or permitted by, and conforms to, the terms of this Article IX
and that it is proper for the Trustee under the provisions of this Article IX
to join in the execution thereof; provided, however, that such Officers’
Certificate and  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 2.1
hereof.

 

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

 

45

 

ARTICLE X.

 

SUCCESSOR ENTITY

 

Section 10.1           Company May Consolidate Etc.

 

Except as provided
pursuant to Section 2.1 pursuant to a Board Resolution, and set forth in
an Officers’ Certificate, or established in one or more indentures supplemental
to this Indenture, nothing contained in this Indenture shall prevent any
consolidation or merger of the Company with or into any other Person (whether
or not affiliated with the Company) or successive consolidations or mergers in
which the Company or its successor or successors shall be a party or parties,
or shall prevent any sale, conveyance, transfer or other disposition of the
property of the Company or its successor or successors as an entirety, or
substantially as an entirety, to any other corporation (whether or not
affiliated with the Company or its successor or successors) authorized to
acquire and operate the same; provided, however, the Company hereby covenants
and agrees that, upon any such consolidation or merger (in each case, if the
Company is not the survivor of such transaction), sale, conveyance, transfer or
other disposition,

 

(a)           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 2.1 to be kept or performed by
the Company shall be expressly assumed, by supplemental indenture (which shall
conform to the provisions of the Trust Indenture Act, as then in effect)
reasonably satisfactory in form to the Trustee executed and delivered to the
Trustee by the entity formed by such consolidation, or into which the Company
shall have been merged, or by the entity which shall have acquired such
property and

 

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

 

Section 10.2           Successor Entity Substituted.

 

(a)           In case of any such consolidation,
merger, sale, conveyance, transfer or other disposition and upon the assumption
by the successor entity by supplemental indenture, executed and delivered to
the Trustee and satisfactory in form to the Trustee, of the obligations set
forth under Section 10.1 on all of the Securities of all series
Outstanding, such successor entity shall succeed to and be substituted for the
Company with the same effect as if it had been named as the Company herein, and
thereupon the predecessor corporation shall be relieved of all obligations and
covenants under this Indenture and the Securities.

 

46

 

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

 

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

 

Section 10.3           Evidence of Consolidation, Etc. to
Trustee.

 

The Trustee, subject to
the provisions of Section 7.1, shall be entitled to receive an Officers’
Certificate and 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 X.

 

ARTICLE XI.

 

SATISFACTION AND
DISCHARGE

 

Section 11.1           Applicability of Article; Company’s
Option to Effect Defeasance or Covenant Defeasance.

 

If pursuant to Section 2.1, provision is made for
either or both of (a) defeasance of the Securities of a series under Section 11.2
or (b) covenant defeasance of the Securities of a series under Section 11.2,
then the provisions of such Sections, as the case may be, together with the
other provisions of this Article XI, shall be applicable to the Securities
of such series, and the Company may at its option by Board Resolution, at any
time, with respect to the Securities of such series, elect to have either Section 11.2
(if applicable) or Section 11.3 (if applicable) be applied to the
Outstanding Securities of such series upon compliance with the applicable
conditions set forth below in this Article XI.

 

Section 11.2           Defeasance and Discharge.

 

Upon the Company’s exercise of the option provided in Section 11.1
to defease the Outstanding Securities of a particular series, the Company shall
be discharged from its obligations with respect to the Outstanding Securities
of such series on the date the applicable conditions set forth in Section 11.4
are satisfied (“Defeasance”).
Defeasance shall mean that the Company shall be deemed to have paid and
discharged the entire indebtedness represented by the Outstanding Securities of
such series and to have satisfied all its other obligations under such Securities
and this Indenture insofar as such Securities are concerned (and the Trustee,
at the expense of the Company, shall execute proper instruments acknowledging
the same); provided, however,
that the following rights, obligations, powers, trusts, duties and immunities
shall survive until otherwise terminated or discharged hereunder:

 

47

 

(a)           the rights of Holders of Outstanding
Securities of such series to receive, solely from the trust fund provided for
in Section 11.4, payments in respect of the principal of and any premium
and interest on such Securities when such payment, are due,

 

(b)           the Company’s obligations with respect to
such Securities under Sections 2.5, 2.6, 2.7 and 4.2,

 

(c)           the rights, powers, trusts, duties and
immunities of the Trustee hereunder, and

 

(d)           this Article XI.

 

Subject to compliance with this Article XI, the
Company may exercise its option with respect to defeasance under this Section 11.2
notwithstanding the prior exercise of its option with respect to covenant
defeasance under Section 11.3 in regard to the Securities of such series.

 

Section 11.3           Covenant Defeasance.

 

Upon the Company’s exercise of the option provided in Section 11.1
to obtain a covenant defeasance with respect to the Outstanding Securities of a
particular series, the Company shall be released from its obligations under
Sections 5.3 and Article X and any additional covenants specified in any
indenture supplemental hereto with respect to the Outstanding Securities of
such series on and after the date the applicable conditions set forth in Section 11.4
are satisfied (“Covenant Defeasance”).
Covenant defeasance shall mean that, with respect to the Outstanding Securities
of such series, the Company may omit to comply with and shall have no liability
in respect of any term, condition or limitation set forth in Sections 5.3 and Article X
and any additional covenants specified in any indenture supplemental hereto,
whether directly or indirectly by reason of any reference elsewhere herein to
any such Section or Article or by reason of any reference in any such
Section or Article to any other provision herein or in any other
document, and such omission to comply shall not constitute an Event of Default
under Section 6.1(a)(iii) with respect to Outstanding Securities of
such series, and the remainder of this Indenture and of the Securities of such
series shall be unaffected thereby.

 

Section 11.4           Conditions to Defeasance or Covenant
Defeasance.

 

The following shall be conditions to Defeasance under Section 11.2
and Covenant Defeasance under Section 11.3 with respect to the Outstanding
Securities of a particular series:

 

(a)           the Company shall have irrevocably
deposited or caused to be deposited with the Trustee (or another trustee
satisfying the requirements of Section 7.10 who shall agree to comply with
the provisions of this Article XI applicable to it) as trust funds in
trust for the purpose of making the following payments, specifically pledged as
security for, and dedicated solely to, the benefit of the Holders of the
Securities of that series, (A) money in an amount, or (B) Government
Obligations which through the scheduled payment of principal and interest in
respect thereof in accordance with their terms will provide, not later than one
Business Day before the due date of any payment, money in an amount, or (C) a
combination thereof, sufficient, in the opinion of a nationally recognized firm
of independent certified public accountants expressed in a written
certification thereof delivered to the Trustee, to pay and 

 

48

 

discharge, and which shall be applied by the Trustee
(or other qualifying trustee) to pay and discharge, (i) the principal of
and any premium and each installment of principal of and any premium and
interest on the Outstanding Securities of such series on the Stated Maturity of
such principal or installment of principal or interest or on any applicable
redemption date or repurchase date and (ii) any mandatory sinking fund
payments or analogous payments applicable to the Outstanding Securities of such
series on the day on which such payments are due and payable in accordance with
the terms of this Indenture and of such Securities.;

 

(b)           Such Defeasance or Covenant Defeasance
shall not result in a breach or violation of, or constitute a default under any
applicable laws, this Indenture or any other agreement or instrument to which
the Company is a party or by which it is bound;

 

(c)           In the case of an election with respect
to Section 11.2, the Company shall have delivered to the Trustee an
Opinion of Counsel stating that (x) the Company has received from the
Internal Revenue Service a private letter ruling or there has been published by
the Internal Revenue Service a revenue ruling pertaining to a comparable form
of transaction, or (y) since the date of this Indenture there has been a
change in the applicable federal income tax law, in either case to the effect
that, and based thereon such Opinion of Counsel shall confirm that, the Holders
of the Outstanding Securities of such series will not recognize income, gain or
loss for Federal income tax purposes as a result of such defeasance and will be
subject to Federal income tax on the same amounts, in the same manner and at
the same times as would have been the case if such defeasance had not occurred;

 

(d)           In the case of an election with respect
to Section 11.3, the Company shall have delivered to the Trustee an
Opinion of Counsel to the effect that the Holders of the Outstanding Securities
of such series will not recognize income, gain or loss for Federal income tax
purposes as a result of such covenant defeasance and will be subject to Federal
income tax on the same amounts, in the same manner and at the same times as
would have been the case if such Covenant Defeasance had not occurred;

 

(e)           Such Defeasance or Covenant Defeasance
shall be effected in compliance with any additional terms, conditions or
limitations which may be imposed on the Company in connection therewith
pursuant to Section 2.1;

 

(f)            No Default or Event of Default with respect
to the Securities of such series shall have occurred and be continuing on the
date of such deposit or at any time during the period ending on the 91st day
after such date; and

 

(g)           The Company shall have delivered to the
Trustee an Officers’ Certificate and an Opinion of Counsel, each stating that
all conditions precedent provided for relating to either the Defeasance under Section 11.2
or the Covenant Defeasance under Section 11.3 (as the case may be) have
been complied with.

 

Section 11.5           Reinstatement.

 

If the Trustee is unable
to apply any money in accordance with Section 11.6 by reason of any order
or judgment of any court or governmental authority enjoining, restraining or
otherwise prohibiting such application, then the Company’s obligations under
this Indenture and 

 

49

 

the Securities of such series shall be revived and
reinstated as though no deposit had occurred pursuant to Section 11.4
until such time as the Trustee is permitted to apply all such money in
accordance with Section 11.6; provided, however, that if the Company makes
any payment of principal of (and premium, if any) or interest on any Security
following the reinstatement of its obligations, the Company shall be subrogated
to the rights of the Holders of the Securities of such series to receive such
payment from the money held by the Trustee.

 

Section 11.6           Deposited Money and Government
Obligations to be Held in Trust; Other Miscellaneous Provisions.

 

Subject to the provisions of Section 11.7, all
money and Government Obligations (including the proceeds thereof) deposited
with the Trustee pursuant to Section 11.4 in respect of the Outstanding
Securities of a particular series shall be held in trust and applied by the
Trustee, in accordance with the provisions of such Securities and this
Indenture, to the payment, either directly or through any Paying Agent
(including the Company or any of its Subsidiaries acting as Paying Agent) as
the Trustee may determine, to the Holders of the particular series of
Securities for the payment, repurchase or redemption of which moneys or
Governmental Obligations have been deposited with the Trustee.

 

The Company shall pay and indemnify the Trustee
against any tax, fee or other charge imposed on or assessed against the
Government Obligations deposited pursuant to Section 11.4 or the principal
and interest received in respect thereof, other than any such tax, fee or other
charge which by law is for the account of the Holders of the Outstanding
Securities of such series.

 

Anything
in this Article XI to the contrary notwithstanding, the Trustee shall
deliver or pay to the Company from time to time upon Company Request any money
or Government Obligations held by it as provided in Section 11.4 which, in
the opinion of a nationally recognized firm of independent public accountants
expressed in a written certification thereof delivered to the Trustee, are in
excess of the amount thereof which would then be required to be deposited for
the purpose for which such money or Government Obligations were deposited.

 

Section 11.7           Repayment to Company.

 

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

 

50

 

ARTICLE XII.

IMMUNITY OF INCORPORATORS, STOCKHOLDERS,

OFFICERS AND DIRECTORS

 

Section 12.1                                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 13.1                                Effect on Successors and Assigns.

 

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

 

Section 13.2                                Actions by Successors.

 

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

 

51

 

Section 13.3                                Surrender of Company Powers.

 

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

 

Section 13.4                                Notices.

 

Except as otherwise
expressly provided herein, any notice, request or demand that by any provision
of this Indenture is required or permitted to be given, made or served by the
Trustee or by the Holders of Securities or by any other Person pursuant to this
Indenture to or on the Company may be given or served by being deposited in
first class mail, postage prepaid, addressed (until another address is filed in
writing by the Company with the Trustee), as follows: International Game
Technology, 9295 Prototype Drive, Reno, Nevada 89521, Attention: General
Counsel. Any notice, election, request or demand by the Company or any
Securityholder or by any other Person pursuant to this Indenture to or upon the
Trustee shall be deemed to have been sufficiently given or made, for all
purposes, if given or made in writing at the Corporate Trust Office of the
Trustee.

 

Section 13.5                                Governing Law.

 

THIS INDENTURE AND THE
SECURITIES SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF
THE STATE OF NEW YORK BUT WITHOUT GIVING EFFECT TO APPLICABLE PRINCIPLES OF
CONFLICTS OF LAW TO THE EXTENT THAT THE APPLICATION OF THE LAWS OF ANOTHER
JURISDICTION WOULD BE REQUIRED THEREBY.

 

Section 13.6                                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 13.7                                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 (i) a statement
that the Person making such certificate or opinion has read such covenant

 

52

 

or condition; (ii) a brief statement as to the
nature and scope of the examination or investigation upon which the statements
or opinions contained in such certificate or opinion are based; (iii) a
statement that, in the opinion of such Person, he has made such examination or
investigation as is reasonably necessary to enable him to express an informed
opinion as to whether or not such covenant or condition has been complied with;
and (iv) a statement as to whether or not, in the opinion of such Person,
such condition or covenant has been complied with.

 

Section 13.8                                Payments on Business Days.

 

Except as provided
pursuant to Section 2.1 pursuant to a Board Resolution, and 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 13.9                                Conflict with Trust Indenture Act.

 

If and to the extent that
any provision of this Indenture limits, qualifies or conflicts with any
provision of the Trust Indenture Act, such Trust Indenture Act provision shall
control.

 

Section 13.10                          Counterparts.

 

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

 

Section 13.11                          Separability.

 

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

 

Section 13.12                          Compliance Certificates.

 

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

 

53

 

Company signing such
certificate has knowledge of such a Default or Event of Default, the
certificate shall describe any such Default or Event of Default and its status.

 

54

 

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

 

 

	
  INTERNATIONAL
  GAME TECHNOLOGY

  
	
   

  
	
  By:

  	
  /s/ Patrick W. Cavanaugh

  	
   

  
	
   

  	
   

  
	
   

  	
  Name: Patrick W. Cavanaugh

  
	
   

  	
  Title:   Executive Vice President and Chief Financial
  Officer

  
	
   

  	
   

  
	
  WELLS FARGO BANK, NATIONAL ASSOCIATION,

  
	
   

  	
  as Trustee

  
	
   

  	
   

  
	
  By:

  	
  /s/ Maddy Hall

  	
   

  
	
   

  	
   

  
	
   

  	
  Name: Maddy Hall

  
	
   

  	
  Title:
    Vice President

  

 

55

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