Document:

Exhibit 4.1

 

 

 

CHEMTURA CORPORATION,

 

as Issuer,

 

the GUARANTORS named herein

 

and

 

WELLS FARGO BANK, N.A.,

 

as Trustee

 

 

INDENTURE

 

Dated as of          ,
2006

 

 

 

 

 

CROSS-REFERENCE TABLE

 

Reconciliation and tie
between Trust Indenture Act

of 1939 and Indenture, dated as of         ,
2006

 

	
  TIA

  	
   

  	
   

  	
   

  	
  Indenture

  
	
  Section

  	
   

  	
   

  	
   

  	
  Section

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  § 310

  	
   

  	
  (a)(1)

  	
   

  	
  608

  
	
   

  	
   

  	
  (a)(2)

  	
   

  	
  608

  
	
   

  	
   

  	
  (a)(3)

  	
   

  	
  613

  
	
   

  	
   

  	
  (b)

  	
   

  	
  609

  
	
  § 312

  	
   

  	
  (a)

  	
   

  	
  701

  
	
   

  	
   

  	
  (b)

  	
   

  	
  701

  
	
   

  	
   

  	
  (c)

  	
   

  	
  701

  
	
  § 313

  	
   

  	
  (a)

  	
   

  	
  702

  
	
   

  	
   

  	
  (b)

  	
   

  	
  702

  
	
   

  	
   

  	
  (c)

  	
   

  	
  602, 702, 703

  
	
  § 314

  	
   

  	
  (a)(1)-(3)

  	
   

  	
  703

  
	
   

  	
   

  	
  (a)(4)

  	
   

  	
  1004

  
	
   

  	
   

  	
  (c)(1)

  	
   

  	
  102

  
	
   

  	
   

  	
  (c)(2)

  	
   

  	
  102

  
	
   

  	
   

  	
  (e)

  	
   

  	
  102

  
	
  § 315

  	
   

  	
  (b)

  	
   

  	
  602

  
	
  § 316

  	
   

  	
  (a)(last sentence)

  	
   

  	
  101 (“Outstanding”)

  
	
   

  	
   

  	
  (a)(1)(A) 

  	
   

  	
  502, 512

  
	
   

  	
   

  	
  (a)(1)(B)

  	
   

  	
  513

  
	
   

  	
   

  	
  (b)

  	
   

  	
  508

  
	
   

  	
   

  	
  (c)

  	
   

  	
  104

  
	
  § 317

  	
   

  	
  (a)(1)

  	
   

  	
  503

  
	
   

  	
   

  	
  (a)(2)

  	
   

  	
  504

  
	
   

  	
   

  	
  (b)

  	
   

  	
  1003

  
	
  § 318

  	
   

  	
  (a)

  	
   

  	
  112

  

 

Note:      This reconciliation and tie
shall not, for any purpose, be deemed to be a part of the Indenture.

 

 

TABLE OF CONTENTS

 

 

	
   

  	
  Page

  
	
   

  	
   

  
	
  ARTICLE ONE

  	
   

  
	
   

  	
   

  
	
  DEFINITIONS
  AND OTHER PROVISIONS

  OF GENERAL APPLICATION

  	
   

  
	
   

  	
   

  
	
  SECTION 101.

  	
  Definitions

  	
  1

  
	
  SECTION 102.

  	
  Compliance Certificates and
  Opinions

  	
  12

  
	
  SECTION 103.

  	
  Form of Documents Delivered
  to Trustee

  	
  12

  
	
  SECTION 104.

  	
  Acts of Holders

  	
  13

  
	
  SECTION 105.

  	
  Notices, Etc. to Trustee and
  Company

  	
  14

  
	
  SECTION 106.

  	
  Notice to Holders; Waiver

  	
  14

  
	
  SECTION 107.

  	
  Effect of Headings and Table
  of Contents

  	
  15

  
	
  SECTION 108.

  	
  Successors and Assigns

  	
  15

  
	
  SECTION 109.

  	
  Separability Clause

  	
  15

  
	
  SECTION 110.

  	
  Benefits of Indenture

  	
  15

  
	
  SECTION 111.

  	
  Governing Law

  	
  15

  
	
  SECTION 112.

  	
  Conflict with Trust Indenture
  Act

  	
  15

  
	
  SECTION 113.

  	
  Legal Holidays

  	
  16

  
	
   

  	
   

  	
   

  
	
  ARTICLE TWO

  	
   

  
	
   

  	
   

  
	
  SECURITY FORMS

  	
   

  
	
   

  	
   

  
	
  SECTION 201.

  	
  Forms Generally

  	
  16

  
	
  SECTION 202.

  	
  Form of Trustee’s Certificate
  of Authentication

  	
  17

  
	
  SECTION 203.

  	
  Securities Issuable in Global
  Form

  	
  17

  
	
  SECTION 204.

  	
  Book-Entry Provisions for
  Global Securities

  	
  17

  
	
  SECTION 205.

  	
  CUSIP Number

  	
  19

  
	
   

  	
   

  	
   

  
	
  ARTICLE THREE

  	
   

  
	
   

  	
   

  
	
  THE SECURITIES

  	
   

  
	
   

  	
   

  
	
  SECTION 301.

  	
  Amount Unlimited; Issuable in
  Series

  	
  19

  
	
  SECTION 302.

  	
  Denominations

  	
  21

  
	
  SECTION 303.

  	
  Execution, Authentication,
  Delivery and Dating

  	
  22

  
	
  SECTION 304.

  	
  Temporary Securities

  	
  23

  
	
  SECTION 305.

  	
  Registration of Transfer and
  Exchange

  	
  23

  
	
  SECTION 306.

  	
  Mutilated, Destroyed, Lost
  and Stolen Securities

  	
  24

  
	
  SECTION 307.

  	
  Payment of Interest; Interest
  Rights Preserved

  	
  25

  
	
  SECTION 308.

  	
  [Reserved]

  	
  26

  

 

i

 

	
   

  	
  Page

  
	
   

  	
   

  
	
  SECTION 309.

  	
  Persons Deemed Owners

  	
  26

  
	
  SECTION 310.

  	
  Cancellation

  	
  27

  
	
  SECTION 311.

  	
  Computation of Interest

  	
  27

  
	
  SECTION 312.

  	
  [Reserved]

  	
  27

  
	
  SECTION 313.

  	
  [Reserved]

  	
  27

  
	
  SECTION 314.

  	
  Registrar and Paying Agent

  	
  27

  
	
  SECTION 315.

  	
  Paying Agent To Hold Money in
  Trust

  	
  28

  
	
  SECTION 316.

  	
  Noteholder Lists

  	
  28

  
	
  SECTION 317.

  	
  Transfer and Exchange

  	
  28

  
	
  SECTION 318.

  	
  Outstanding Securities

  	
  29

  
	
   

  	
   

  	
   

  
	
  ARTICLE FOUR

  	
   

  
	
   

  	
   

  
	
  SATISFACTION
  AND DISCHARGE

  	
   

  
	
   

  	
   

  
	
  SECTION 401.

  	
  Satisfaction and Discharge of
  Indenture

  	
  29

  
	
  SECTION 402.

  	
  Application of Trust Money

  	
  30

  
	
   

  	
   

  	
   

  
	
  ARTICLE FIVE

  	
   

  
	
   

  	
   

  
	
  REMEDIES

  	
   

  
	
   

  	
   

  
	
  SECTION 501.

  	
  Events of Default

  	
  31

  
	
  SECTION 502.

  	
  Acceleration of Maturity;
  Rescission and Annulment

  	
  32

  
	
  SECTION 503.

  	
  Collection of Indebtedness
  and Suits for Enforcement by Trustee

  	
  33

  
	
  SECTION 504.

  	
  Trustee May File Proofs of
  Claim

  	
  34

  
	
  SECTION 505.

  	
  Trustee May Enforce Claims
  Without Possession of Securities

  	
  35

  
	
  SECTION 506.

  	
  Application of Money
  Collected

  	
  35

  
	
  SECTION 507.

  	
  Limitation on Suits

  	
  35

  
	
  SECTION 508.

  	
  Unconditional Right of
  Holders to Receive Principal, Premium and Interest

  	
  36

  
	
  SECTION 509.

  	
  Restoration of Rights and
  Remedies

  	
  36

  
	
  SECTION 510.

  	
  Rights and Remedies
  Cumulative

  	
  36

  
	
  SECTION 511.

  	
  Delay or Omission Not Waiver

  	
  37

  
	
  SECTION 512.

  	
  Control by Holders

  	
  37

  
	
  SECTION 513.

  	
  Waiver of Past Defaults

  	
  37

  
	
  SECTION 514.

  	
  Undertaking for Costs

  	
  38

  
	
  SECTION 515.

  	
  Waiver of Stay or Extension
  Laws

  	
  38

  
	
   

  	
   

  	
   

  
	
  ARTICLE SIX

  	
   

  
	
   

  	
   

  
	
  THE TRUSTEE

  	
   

  
	
   

  	
   

  
	
  SECTION 601.

  	
  Certain Duties and
  Responsibilities

  	
  38

  
	
  SECTION 602.

  	
  Notice of Defaults

  	
  39

  
	
  SECTION 603.

  	
  Certain Rights of Trustee

  	
  40

  

 

ii

 

	
   

  	
  Page

  
	
   

  	
   

  
	
  SECTION 604.

  	
  Trustee Not Responsible for
  Recitals or Issuance of Securities

  	
  41

  
	
  SECTION 605.

  	
  May Hold Securities

  	
  41

  
	
  SECTION 606.

  	
  Money Held in Trust

  	
  41

  
	
  SECTION 607.

  	
  Compensation and
  Reimbursement

  	
  41

  
	
  SECTION 608.

  	
  Corporate Trustee Required;
  Eligibility; Conflicting Interests

  	
  42

  
	
  SECTION 609.

  	
  Resignation and Removal;
  Appointment of Successor

  	
  42

  
	
  SECTION 610.

  	
  Acceptance of Appointment by
  Successor

  	
  43

  
	
  SECTION 611.

  	
  Merger, Conversion,
  Consolidation or Succession to Business

  	
  44

  
	
  SECTION 612.

  	
  Appointment of Authenticating
  Agent

  	
  45

  
	
  SECTION 613.

  	
  Co-Trustee

  	
  46

  
	
   

  	
   

  	
   

  
	
  ARTICLE SEVEN

  	
   

  
	
   

  	
   

  
	
  HOLDERS’ LISTS
  AND REPORTS BY TRUSTEE AND COMPANY

  	
   

  
	
   

  	
   

  
	
  SECTION 701.

  	
  Disclosure of Names and Addresses
  of Holders

  	
  47

  
	
  SECTION 702.

  	
  Reports by Trustee

  	
  48

  
	
  SECTION 703.

  	
  Reports by Company

  	
  48

  
	
   

  	
   

  	
   

  
	
  ARTICLE EIGHT

  	
   

  
	
   

  	
   

  
	
  CONSOLIDATION,
  MERGER, CONVEYANCE, TRANSFER OR LEASE

  	
   

  
	
   

  	
   

  
	
  SECTION 801.

  	
  Company May Consolidate,
  Etc., Only on Certain Terms

  	
  49

  
	
  SECTION 802.

  	
  Successor Person Substituted

  	
  50

  
	
  SECTION 803.

  	
  Securities To Be Secured in
  Certain Events

  	
  50

  
	
   

  	
   

  	
   

  
	
  ARTICLE NINE

  	
   

  
	
   

  	
   

  
	
  SUPPLEMENTAL
  INDENTURES

  	
   

  
	
   

  	
   

  
	
  SECTION 901.

  	
  Supplemental Indentures
  Without Consent of Holders

  	
  50

  
	
  SECTION 902.

  	
  Supplemental Indentures with
  Consent of Holders

  	
  52

  
	
  SECTION 903.

  	
  Execution of Supplemental
  Indentures

  	
  53

  
	
  SECTION 904.

  	
  Effect of Supplemental
  Indentures

  	
  53

  
	
  SECTION 905.

  	
  Conformity with Trust
  Indenture Act

  	
  53

  
	
  SECTION 906.

  	
  Reference in Securities to
  Supplemental Indentures

  	
  53

  
	
  SECTION 907.

  	
  Notice of Supplemental
  Indentures

  	
  53

  
	
   

  	
   

  	
   

  
	
  ARTICLE TEN

  	
   

  
	
   

  	
   

  
	
  COVENANTS

  	
   

  
	
   

  	
   

  
	
  SECTION 1001.

  	
  Payment of Principal,
  Premium, if any, and Interest

  	
  53

  
	
  SECTION 1002.

  	
  Maintenance of Office or
  Agency

  	
  54

  
	
  SECTION 1003.

  	
  Money for Securities Payments
  to Be Held in Trust

  	
  54

  

 

iii

 

	
   

  	
  Page

  
	
   

  	
   

  
	
  SECTION 1004.

  	
  Statement as to Compliance

  	
  55

  
	
  SECTION 1005.

  	
  Corporate Existence

  	
  55

  
	
  SECTION 1006.

  	
  Negative Pledge

  	
  55

  
	
  SECTION 1007.

  	
  Limitation on Sale/Leaseback
  Transactions

  	
  57

  
	
  SECTION 1008.

  	
  Waiver of Certain Covenants

  	
  58

  
	
  SECTION 1009.

  	
  Change of Control Offer

  	
  58

  
	
  SECTION 1010.

  	
  Limitation on Debt of
  Subsidiaries

  	
  60

  
	
  SECTION 1011.

  	
  Additional Subsidiary
  Guarantees

  	
  61

  
	
   

  	
   

  	
   

  
	
  ARTICLE ELEVEN

  	
   

  
	
   

  	
   

  
	
  REDEMPTION OF
  SECURITIES

  	
   

  
	
   

  	
   

  
	
  SECTION 1101.

  	
  Applicability of Article

  	
  62

  
	
  SECTION 1102.

  	
  Election to Redeem; Notice to
  Trustee

  	
  62

  
	
  SECTION 1103.

  	
  Selection by Trustee of
  Securities to Be Redeemed

  	
  62

  
	
  SECTION 1104.

  	
  Notice of Redemption

  	
  63

  
	
  SECTION 1105.

  	
  Deposit of Redemption Price

  	
  63

  
	
  SECTION 1106.

  	
  Securities Payable on
  Redemption Date

  	
  64

  
	
  SECTION 1107.

  	
  Securities Redeemed in Part

  	
  64

  
	
   

  	
   

  	
   

  
	
  ARTICLE TWELVE

  	
   

  
	
   

  	
   

  
	
  [Reserved]

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  ARTICLE
  THIRTEEN

  	
   

  
	
   

  	
   

  
	
  REPAYMENT AT
  OPTION OF HOLDERS

  	
   

  
	
   

  	
   

  
	
  SECTION 1301.

  	
  Applicability of Article

  	
  64

  
	
  SECTION 1302.

  	
  Repayment of Securities

  	
  65

  
	
  SECTION 1303.

  	
  Exercise of Option

  	
  65

  
	
  SECTION 1304.

  	
  When Securities Presented for
  Repayment Become Due and Payable

  	
  65

  
	
  SECTION 1305.

  	
  Securities Repaid in Part

  	
  66

  
	
   

  	
   

  	
   

  
	
  ARTICLE
  FOURTEEN

  	
   

  
	
   

  	
   

  
	
  DEFEASANCE AND
  COVENANT DEFEASANCE

  	
   

  
	
   

  	
   

  
	
  SECTION 1401.

  	
  Company’s Option to Effect
  Defeasance or Covenant Defeasance

  	
  66

  
	
  SECTION 1402.

  	
  Defeasance and Discharge

  	
  66

  

 

iv

 

	
   

  	
  Page

  
	
   

  	
   

  
	
  SECTION 1403.

  	
  Covenant Defeasance

  	
  67

  
	
  SECTION 1404.

  	
  Conditions to Defeasance or
  Covenant Defeasance

  	
  67

  
	
  SECTION 1405.

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

  	
  69

  
	
   

  	
   

  	
   

  
	
  ARTICLE
  FIFTEEN

  	
   

  
	
   

  	
   

  
	
  GUARANTEE

  	
   

  
	
   

  	
   

  
	
  SECTION 1501.

  	
  Unconditional Guarantee

  	
  69

  
	
  SECTION 1502.

  	
  Severability

  	
  70

  
	
  SECTION 1503.

  	
  Limitation of Guarantor’s
  Liability

  	
  70

  
	
  SECTION 1504.

  	
  Release of Guarantor

  	
  71

  
	
  SECTION 1505.

  	
  Contribution

  	
  71

  
	
  SECTION 1506.

  	
  Waiver of Subrogation

  	
  71

  
	
  SECTION 1507.

  	
  Execution of Guarantee

  	
  72

  
	
  SECTION 1508.

  	
  Waiver of Stay, Extension or
  Usury Laws

  	
  72

  
	
   

  	
   

  	
   

  
	
  ARTICLE
  SIXTEEN

  	
   

  
	
   

  	
   

  
	
  IMMUNITY OF
  INCORPORATORS, STOCKHOLDERS,

  OFFICERS, DIRECTORS AND EMPLOYEES

  	
   

  
	
   

  	
   

  
	
  SECTION 1601.

  	
  Exemption from Individual
  Liability

  	
  73

  
	
   

  	
   

  	
   

  
	
  EXHIBITS

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Exhibit A

  	
  Form of Initial Security

  	
   

  
	
  Exhibit B

  	
  Form of Global Security Legend

  	
   

  
	
  Exhibit C

  	
  Form of Guarantee

  	
   

  
				

 

v

 

INDENTURE, dated as of               ,
2006, between Chemtura Corporation, a Delaware corporation (herein called the “Company”),
having its principal executive offices at 199 Benson Road, Middlebury, CT 06749,
the Guarantors named herein, and Wells Fargo Bank, N.A., a national banking
association duly organized and existing under the laws of the United States, as
Trustee (herein called the “Trustee”).

 

RECITALS OF THE COMPANY

 

The Company and each of the Guarantors has
duly authorized the execution and delivery of this Indenture to provide for the
issuance from time to time of the Company’s unsecured debentures, notes or
other evidences of indebtedness (herein called the “Securities”), to be
issued in one or more series as in this Indenture provided.  The Company is issuing $                
aggregate principal amount of its      % Notes due
2016 (the “Initial Securities”) hereunder concurrently with its
execution and delivery of this Indenture.

 

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

 

All things necessary to make this Indenture a
valid agreement of the Company and each of the Guarantors, in accordance with
its terms, have been done.

 

NOW, THEREFORE, THIS INDENTURE WITNESSETH:

 

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

 

ARTICLE ONE

 

DEFINITIONS AND OTHER PROVISIONS

OF GENERAL APPLICATION

 

SECTION 101.               Definitions.  For all purposes of this Indenture, except as
otherwise expressly provided or unless the context otherwise requires:

 

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

 

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

 

(3)           all accounting terms not
otherwise defined herein have the meanings assigned to them in accordance with
generally accepted accounting principles, and, except as otherwise herein
expressly provided, the term “generally accepted accounting principles” with
respect to any computation required or permitted hereunder shall mean such

 

 

accounting
principles as are generally accepted in the United States at the date of such
computation; and

 

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

 

Certain terms, used principally in Articles
Three, Six and Fourteen are defined in those Articles.

 

“Act,” when used with respect to any
Holder, has the meaning specified in Section 104(a).

 

“Affiliate” means, with respect to any
specified Person, any other Person who directly or indirectly through one or
more intermediaries controls, or is controlled by, or is under common control
with, such specified Person. The term “control” means the possession,
directly or indirectly, of the power to direct or cause the direction of the
management and policies of a Person, whether through the ownership of voting
securities, by contract or otherwise; and the terms “controlling” and “controlled”
have meanings correlative of the foregoing.

 

“Agent Members” has the meaning
specified in Section 204(a).

 

“Attributable Debt” in respect of a
Sale/Leaseback Transaction means, as at the time of determination, the lesser
of (i) the fair market value of the property being leased and (ii) the present
value (discounted at the interest rate set forth or implicit in the terms of
such transaction or, if not practicable to determine such rate, the interest
rate per annum borne by the Securities of each series outstanding pursuant to
this Indenture, compounded semi-annually, in either case as determined by the
principal accounting or financial officer of the Company) of the total
obligations of the lessee for rental payments during the remaining term of the
lease included in such Sale/Leaseback Transaction (including any period for
which such lease has been extended or may, at the option of the lessor, be extended).

 

“Authenticating Agent” means any
Person authorized by the Trustee to act on behalf of the Trustee to
authenticate Securities.

 

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

 

“Bankruptcy Law” means Title 11 of the
United States Code, as amended, or any similar federal or state law for the relief
of debtors.

 

2

 

“Board of Directors” means either the
board of directors of the Company or any duly authorized committee of that
board.

 

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

 

“Business Day” means, unless otherwise
specified with respect to any Securities pursuant to Section 301, each
Monday, Tuesday, Wednesday, Thursday and Friday which is not a day on which
banking institutions in New York, New York are authorized or obligated by law
or executive order to close.

 

“Capital Stock” means:

 

(1)           with
respect to any Person that is a corporation, any and all shares, interests,
participations or other equivalents (however designated and whether or not
voting) of corporate stock, including each class of Common Stock and Preferred
Stock of such Person, and all options, warrants or other rights to purchase or
acquire any of the foregoing; and

 

(2)           with
respect to any Person that is not a corporation, any and all partnership,
membership or other equity interests of such Person, and all options, warrants
or other rights to purchase or acquire any of the foregoing.

 

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

 

(1)           any
sale, lease, exchange or other transfer (in one transaction or a series of
related transactions) of all or substantially all of the assets of the Company
and its Subsidiaries taken as a whole to any Person or group of related Persons
for purposes of Section 13(d) of the Exchange Act (a “Group”), together with
any Affiliates thereof (whether or not otherwise in compliance with the
provisions of the Indenture);

 

(2)           the
approval by the holders of Capital Stock of the Company of any plan or proposal
for the liquidation or dissolution of the Company (whether or not otherwise in
compliance with the provisions of the Indenture);

 

(3)           any
Person or Group shall become the owner, directly or indirectly, beneficially or
of record, of shares representing more than 50% of the aggregate ordinary
voting power represented by the issued and outstanding Capital Stock of the
Company;

 

(4)           the
replacement of a majority of the Board of Directors of the Company over a
two-year period from the directors who constituted the Board of Directors of
the Company at the beginning of such period, and such replacement shall not
have been approved by a vote of at least a majority of

 

3

 

the Board of
Directors of the Company then still in office who either were members of such
Board of Directors at the beginning of such period or whose election as a
member of such Board of Directors was previously so approved; or

 

(5)           the
Company consolidates with, or merges with or into, any Person, or any Person
consolidates with, or merges with or into, the Company, in any such event
pursuant to a transaction in which any of the outstanding Voting Stock of the
Company or such other Person is converted into or exchanged for cash, securities
or other property, other than any such transaction where (A) the Voting Stock
of the Company outstanding immediately prior to such transaction is converted
into or exchanged for Voting Stock of the surviving or transferee Person
constituting a majority of the total voting power of the outstanding shares of
such Voting Stock of such surviving or transferee Person (immediately after
giving effect to such issuance) and (B) immediately after such transaction, no
Person or Group beneficially owns, directly or indirectly, 50% or more of the
voting power of the Voting Stock of the surviving or transferee Person.

 

“Change of Control Offer” has the
meaning specified in Section 1009.

 

“Change of Control Payment Date” has
the meaning specified in Section 1009(b).

 

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

 

“Commission” means the Securities and
Exchange Commission, as from time to time constituted, created under the Securities
Exchange Act of 1934, or, if at any time after the execution of this Indenture
such Commission is not existing and performing the duties now assigned to it
under the Trust Indenture Act, then the body performing such duties at such
time.

 

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

 

“Company Request” or “Company Order”
means a written request or order signed in the name of the Company by any two
of its Chairman, its Chief Executive Officer, its President, any Senior Vice
President, any Vice President, its Treasurer, an Assistant Treasurer, its
Secretary or an Assistant Secretary and delivered to the Trustee.

 

“Consolidated Net Tangible Assets”
means, as of any particular time, the aggregate amount of assets (less
applicable reserves and other properly deductible items) after deducting
therefrom: (a) all current liabilities except for (1) notes and
loans payable, (2) current maturities

 

4

 

of long-term debt and
(3) current maturities of obligations under capital leases; and
(b) to the extent included in said aggregate amount of assets, all
goodwill, trade names, trademarks, patents, organization expenses, unamortized
debt discount and expenses and all other intangible assets, to the extent
included in said aggregate amount of assets, all as set forth on the most
recent consolidated balance sheet of the Company and its consolidated
subsidiaries and computed in accordance with generally accepted accounting
principles.

 

“Consolidated Shareholders’ Equity”
means, at any date, the aggregate of the dollar amount of the outstanding preferred
and common share capital of the Company, plus any outstanding warrants
exercisable into shares, plus any outstanding debentures or other Debt which
are convertible into shares at the option of the Company and which have no
significant retraction privilege, plus or minus the amount, without
duplication, of any reinvested earnings or deficit, plus any contributed
surplus, plus or minus any cumulative translation adjustment, all as set forth
in the most recent consolidated balance sheet of the Company.

 

“Corporate Trust Office” means the
principal corporate trust office of the Trustee, at which at any particular
time its corporate trust business shall be administered, which office on the
date of execution of this Indenture is located at Sixth St. and Marquette Ave.,
MAC N9303-120, Minneapolis, Minnesota 55479, except that with respect to
presentation of Securities for payment or for registration of transfer or
exchange, such term shall mean the office or agency of the Trustee at which, at
any particular time, its corporate agency business shall be conducted.

 

“Corporation” includes corporations,
associations, companies, limited liability companies and business trusts.

 

“covenant defeasance” has the meaning
specified in Section 1403.

 

“Debt” means notes, bonds, debentures
or other similar evidences of indebtedness for money borrowed.  For the avoidance of doubt, “Debt” shall not
include Attributable Debt.

 

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

 

“defeasance” has the meaning specified
in Section 1402.

 

“Depositary” means The Depository
Trust Company, its nominees and their respective successors.

 

5

 

“Dollar” or “$” means a dollar
or other equivalent unit in such coin or currency of the United States of
America as at the time shall be legal tender for the payment of public and
private debts.

 

“Domestic Subsidiary” means any wholly
owned Subsidiary of the Company organized under the laws of any state of the
United States of America.

 

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

 

“Excluded Holder” has the meaning
specified in Section 1009.

 

“Fall-Away Event” shall be deemed to
have occurred when:

 

(1)           all
Debt of the Company’s Subsidiaries then outstanding is permitted to be incurred
at such time under Section 1010 assuming that such covenant is in full force
and effect;

 

(2)           no
default or event of default has occurred and is continuing;

 

(3)           all
of the Great Lakes Guarantees are released or 80% or more of the Great Lakes
Notes are no longer outstanding; and

 

(4)           the
Company has delivered an officers’ certificate to the Trustee certifying that
the conditions set forth in clauses (1), (2) and (3) above are satisfied.

 

6

 

“Foreign Holding Company” means each
of: Crompton Europe Financial Services Company, Chemtura Holding Company, Inc.,
Crompton International Corporation, Crompton LLC, GLCC Mexico Holdings, Inc.,
Great Lakes Trading Company, Inc. and QO Chemicals, Inc.

 

“Global Security” has the meaning specified
in Section 203.

 

“Government Obligations” means, unless
otherwise specified with respect to any series of Securities pursuant to Section 301,
securities which are (i) direct obligations of the government which issued
the currency in which the Securities of a particular series are payable or
(ii) obligations of a Person controlled or supervised by and acting as an
agency or instrumentality of the government which issued the currency in which
the Securities of such series are payable, the payment of which is
unconditionally guaranteed by such government, which, in either case, are full
faith and credit obligations of such government payable in such currency and
are not callable or redeemable at the option of the issuer thereof and shall
also include a depository receipt issued by a bank or trust company as
custodian with respect to any such Government Obligation or a specific payment
of interest on or principal of any such Government Obligation held by such
custodian for the account of the holder of a depository 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 depository
receipt from any amount received by the custodian in respect of the Government
Obligation or the specific payment of interest or principal of the Government
Obligation evidenced by such depository receipt.

 

“Great Lakes Guarantees” means the
guarantees by the Company and certain of its Subsidiaries of the Great Lakes
Notes.

 

“Great Lakes Notes” means the 7% Notes
due 2009 issued by Great Lakes Chemical Corporation outstanding on the Issue
Date.

 

“Guarantee” means a guarantee of the Securities
by a Guarantor.

 

“Guarantor” means, as of the date of
the Indenture, each Domestic Subsidiary as of such date other than the Foreign
Holding Companies, Crompton & Knowles Receivables Corporation and Assured
Insurance Company, and thereafter each additional Subsidiary of the Company
that has provided a Guarantee in accordance with the terms of the Indenture, in
each case until the Guarantee of any such Guarantor is released in accordance
with the terms of this Indenture.

 

“Holder” means a Person in whose name
a note is registered on the Registrar’s books.

 

7

 

“Indenture” means this instrument as
originally executed or as it may from time to time be supplemented or amended
by one or more indentures supplemental hereto entered into pursuant to the
applicable provisions hereof, and shall include the terms of particular series
of Securities established as contemplated by Section 301 other than with respect
to the Initial Securities; provided, however, that, if at any
time more than one Person is acting as Trustee under this instrument, “Indenture”
shall mean, with respect to any one or more series of Securities for which such
Person is Trustee, this instrument as originally executed or as it may from
time to time be supplemented or amended by one or more indentures supplemental
hereto entered into pursuant to the applicable provisions hereof and shall
include the terms of particular series of Securities for which such Person is
Trustee established as contemplated by Section 301, exclusive, however, of
any provisions or terms which relate solely to other series of Securities for
which such Person is not Trustee, regardless of when such terms or provisions
were adopted, and exclusive of any provisions or terms adopted by means of one
or more indentures supplemental hereto executed and delivered after such Person
had become such Trustee but to which such Person, as such Trustee, was not a
party.

 

“Initial Securities” has the meaning
specified in the first recital of this Indenture.

 

 “Interest,”
when used with respect to an Original Issue Discount Security which by its
terms bears interest only after Maturity, means interest payable after Maturity
at the rate prescribed in such Original Issue Discount Security.

 

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

 

“Issue Date,” with respect to the
Initial Securities, means April [  ], 2006.

 

 

8

 

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

 

“Officers’ Certificate” means a
certificate signed by any two of the Chairman, the Chief Executive Officer, the
President, a Senior Vice President or a Vice President, or by any one of the
foregoing together with the Treasurer, an Assistant Treasurer, the Secretary or
an Assistant Secretary of the Company, and delivered to the Trustee.

 

“Opinion of Counsel” means a written opinion
of counsel, who may be counsel for the Company, including an employee of the
Company, and who shall be acceptable to the Trustee, whose acceptance shall not
be unreasonably withheld.

 

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

 

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

 

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

 

(ii)           Securities, or portions
thereof, for whose payment or redemption or repayment at the option of the
Holder money in the necessary amount has been theretofore deposited with the
Trustee or any Paying Agent (other than the Company) in trust or set aside and
segregated in trust by the Company (if the Company shall act as its own Paying

 

9

 

Agent) for the
Holders of such Securities; provided, however, that, if such Securities are to
be redeemed, notice of such redemption has been duly given pursuant to this
Indenture or provision therefor satisfactory to the Trustee has been made;

 

(iii)    Securities, except to the
extent provided in Sections 1402 and 1403, with respect to which the Company
has effected defeasance and/or covenant defeasance as provided in Article Fourteen;
and

 

(iv)    Securities which have been
paid pursuant to Section 306 or in exchange for or in lieu of which other Securities
have been authenticated and delivered pursuant to this Indenture, other than
any such Securities in respect of which there shall have been presented to the
Trustee proof satisfactory to it that such Securities are held by a bona fide
purchaser in whose hands such Securities are valid obligations of the Company;

 

provided, however,
that in determining whether the Holders of the requisite principal amount of
the Outstanding Securities have given any request, demand, authorization,
direction, notice, consent or waiver hereunder or are present at a meeting of
Holders for quorum purposes, and for the purpose of making the calculations
required by TIA Section 316, (i) the principal amount of an Original
Issue Discount Security that may be counted in making such determination or
calculation and that shall be deemed to be Outstanding for such purpose shall
be equal to the amount of principal thereof that would be (or shall have been
declared to be) due and payable, at the time of such determination, upon a
declaration of acceleration of the maturity thereof pursuant to
Section 502 and (ii) Securities owned by the Company or any other
obligor upon the Securities or any Affiliate of the Company or of such other
obligor shall be disregarded and deemed not to be Outstanding, except that, in
determining whether the Trustee shall be protected in making such calculation
or in relying upon any such request, demand, authorization, direction, notice,
consent or waiver, only Securities which the Trustee knows to be so owned shall
be so disregarded.  Securities so owned
which have been pledged in good faith may be regarded as Outstanding if the
pledgee establishes to the satisfaction of the Trustee the pledgee’s right so
to act with respect to such Securities and that the pledgee is not the Company
or any other obligor upon the Securities or any Affiliate of the Company or of
such other obligor.

 

“Paying Agent” has the meaning set
forth in Section 314.

 

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

 

“Physical Securities” means
certificated Securities in registered form.

 

10

 

“Place of Payment” means, when used
with respect to the Securities of or within any series, the place or places
where the principal of (and premium, if any) and interest on such Securities
are payable as specified as contemplated by Sections 301 and 1002.

 

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

 

“Preferred Stock” means, with respect
to any Person, any Capital Stock of such Person that has preferential rights to
any other Capital Stock of such Person with respect to dividends or redemptions
upon liquidation.

 

“Purchase Date” means, with respect to
any Security to be repurchased, the date fixed for such repurchase by or pursuant
to this Indenture.

 

“Purchase Price” means the amount
payable for the repurchase of any Security on a Purchase Date, exclusive of accrued
and unpaid interest thereon to the Purchase Date, unless otherwise specifically
provided.

 

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

 

“Redemption Price,” when used with
respect to any Security to be redeemed, means the price at which it is to be redeemed
pursuant to Article Eleven.

 

“Registrar” has the meaning set forth
in Section 314.

 

“Regular Record Date” for the interest
payable on any Interest Payment Date on the Securities of or within any series
means the date specified for that purpose as contemplated by Section 301;
provided that with respect to the Initial Securities, “Regular Record Date”
shall mean May 15 and November 15.

 

“Repayment Date” means, when used with
respect to any Security to be repaid at the option of the Holder, the date
fixed for such repayment by or pursuant to this Indenture.

 

“Repayment Price” means, when used
with respect to any Security to be repaid at the option of the Holder, the
price at which it is to be repaid by or pursuant to this Indenture.

 

“Responsible Officer,” when used with
respect to the Trustee, means the chairman or any vice-chairman of the board of
directors, the chairman or any vice-chairman of the executive committee of the
board of directors, the chairman of the trust committee, the president, and any
vice president, the secretary, any assistant secretary, the treasurer, any
assistant treasurer, the cashier, any assistant cashier, any trust officer or
assistant trust officer, the controller or any assistant controller or any
other officer in the Corporate Trust Office of the Trustee customarily

 

11

 

performing functions similar to
those performed by any of the above-designated officers, and also means, with
respect to a particular corporate trust matter, any other officer to whom such
matter is referred because of his knowledge of and familiarity with the particular
subject, in each case located at the Corporate Trust Office of the Trustee.

 

“Sale/Leaseback Transaction” means an
arrangement relating to property now owned or hereafter acquired whereby the
Company or a Subsidiary transfers such property to a Person and the Company or
a Subsidiary leases it from such Person, other than (i) leases between the
Company and a wholly-owned Subsidiary or between wholly-owned Subsidiaries and
(ii) transactions providing for a lease for a term, including any renewal thereof,
of not more than three years.

 

“Secured Projects” has the meaning
specified in Section 1006(a)(iv).

 

“Securities” has the meaning stated in
the first recital of this Indenture and more particularly means any Securities
authenticated and delivered under this Indenture, including the Initial
Securities; provided, however, that if at any time there is more
than one Person acting as Trustee under this Indenture, “Securities” with
respect to the Indenture as to which such Person is Trustee shall have the
meaning stated in the first recital of this Indenture and shall more
particularly mean Securities authenticated and delivered under this Indenture,
exclusive, however, of Securities of any series as to which such Person is not
Trustee.

 

“Security Interest” means any
mortgage, pledge, lien, conditional sale or other title retention agreement, or
other similar security interest.

 

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

 

“Significant Guarantor” means one or
more Guarantors that, individually or in the aggregate, would be a “significant
subsidiary” as defined in Article 1, Rule 1-02 of Regulation S-X
promulgated under the Securities Act of 1933, as amended, as such regulation is
in effect on the date hereof, substituting “5 percent” for “10 percent” each
place that it appears therein.

 

“Significant Subsidiary,” with respect
to any Person, means any Subsidiary of such Person that satisfies the criteria
for a “significant subsidiary” set forth in Rule 1.02(w) of Regulation S-X
under the Exchange Act.

 

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

 

“Stated Maturity” means, with respect
to any security, the date specified in such security as the fixed date on which
the payment of principal of such security or such installment of principal or
interest is due and payable, including pursuant to any mandatory redemption
provision (but excluding any provision providing for the repurchase of such security
at the option of

 

12

 

the holder thereof upon the happening
of any contingency beyond the control of the issuer unless such contingency has
occurred).

 

“Subsidiary,” with respect to any
Person, means:

 

(1)           any
corporation of which the outstanding Capital Stock having at least a majority
of the votes entitled to be cast in the election of directors under ordinary
circumstances shall at the time be owned, directly or indirectly, by such
Person; or

 

(2)           any
other Person of which at least a majority of the voting interest under ordinary
circumstances is at the time, directly or indirectly, owned by such Person.

 

Unless otherwise indicated in this Indenture,
all references to Subsidiaries shall mean Subsidiaries of the Company.

 

“Trust Indenture Act” or “TIA”
means the Trust Indenture Act of 1939 as in force at the date as of which this
Indenture was executed, except as provided in Section 905.

 

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

 

“United States” means, unless
otherwise specified with respect to any Securities pursuant to
Section 301, the United States of America (including the states and the
District of Columbia), its territories, its possessions and other areas subject
to its jurisdiction.

 

“United States person” means, unless
otherwise specified with respect to any Securities pursuant to
Section 301, an individual who is a citizen or resident of the United
States, a corporation, partnership or other entity created or organized in or
under the laws of the United States, any State or the District of Columbia or
an estate or trust the income of which is subject to United States federal
income taxation regardless of its source.

 

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

 

“Voting Stock” means stock of the
class or classes having general voting power under ordinary circumstances to
elect at least a majority of the board of directors, managers or

 

13

 

trustees of a corporation
(irrespective of whether or not at the time stock of any other class or classes
shall have or might have voting power by reason of the happening of any contingency).

 

“Yield to Maturity” means the yield to
maturity, computed at the time of issuance of a Security (or, if applicable, at
the most recent redetermination of interest on such Security) and as set forth
in such Security in accordance with generally accepted United States bond yield
computation principles.

 

SECTION 102.               Compliance
Certificates and Opinions.  Upon any
application or request by the Company to the Trustee to take any action under
any provision of this Indenture (other than the authentication of the Initial
Securities), the Company shall furnish to the Trustee an Officers’ Certificate
stating that all conditions precedent, if any, provided for in this Indenture
relating to the proposed action have been complied with and an Opinion of
Counsel stating that in the opinion of such counsel all such conditions
precedent, if any, have been complied with, except that in the case of any such
application or request as to which the furnishing of such documents is
specifically required by any provision of this Indenture relating to such
particular application or request, no additional certificate or opinion need be
furnished.

 

Every certificate or opinion with respect to
compliance with a covenant or condition provided for in this Indenture (other
than pursuant to Section 1004) shall include:

 

(1)           a statement that each
individual signing such certificate or opinion has read such covenant or
condition and the definitions herein relating thereto;

 

(2)           a brief statement as to
the nature and scope of the examination or investigation upon which the
statements or opinions contained in such certificate or opinion are based;

 

(3)           a statement that, in
the opinion of each such individual, he has made such examination or investigation
as is necessary to enable him to express an informed opinion as to whether or
not such covenant or condition has been complied with; and

 

(4)           a statement as to
whether, in the opinion of each such individual, such covenant or condition has
been complied with.

 

SECTION 103.               Form
of Documents Delivered to Trustee. 
In any case where several matters are required to be certified by, or
covered by an opinion of, any specified Person, it is not necessary that all
such matters be certified by, or covered by the opinion of, only one such
Person, or that they be so certified or covered by only one document, but one
such Person may certify or give an opinion with respect to some matters and one
or more other such Persons as to other matters, and any such Person may certify
or give an opinion as to such matters in one or several documents.

 

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

 

14

 

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

 

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

 

SECTION 104.               Acts
of Holders.  (a)  Any request, demand, authorization,
direction, notice, consent, waiver or other action provided by this Indenture
to be given or taken by Holders of the Outstanding Securities of all series or
one or more series, as the case may be, may be embodied in and evidenced by one
or more instruments of substantially similar tenor signed by such Holders in
person or by agents duly appointed in writing. 
Except as herein otherwise expressly provided, such action shall become
effective when such instrument or instruments or record or both are delivered
to the Trustee and, where it is hereby expressly required, to the Company.  Such instrument or instruments and any such
record (and the action embodied therein and evidenced thereby) are herein
sometimes referred to as the “Act” of the Holders signing such
instrument or instruments or so voting at any such meeting.  Proof of execution of any such instrument or
of a writing appointing any such agent, or of the holding by any Person of a
Security, shall be sufficient for any purpose of this Indenture and conclusive
in favor of the Trustee and the Company, if made in the manner provided in this
Section.

 

(b)           The
fact and date of the execution by any Person of any such instrument or writing
may be proved by the affidavit of a witness of such execution or by a
certificate of a notary public or other officer authorized by law to take
acknowledgments of deeds, certifying that the individual signing such
instrument or writing acknowledged to him the execution thereof.  Where such execution is by a signer acting in
a capacity other than his individual capacity, such certificate or affidavit
shall also constitute sufficient proof of authority.  The fact and date of the execution of any
such instrument or writing, or the authority of the Person executing the same,
may also be proved in any other manner which the Trustee deems sufficient.

 

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

 

(d)           If
the Company shall solicit from the Holders any request, demand, authorization,
direction, notice, consent, waiver or other Act, the Company may, at its
option, by or pursuant to Board Resolution, fix in advance a record date for
the determination of Holders entitled to give such request, demand,
authorization, direction, notice, consent, waiver or other Act, but the Company
shall have no obligation to do so. 
Notwithstanding TIA Section 316(c), such record date shall be the
record date specified in or pursuant to such Board Resolution, which shall be a
date not earlier than the date 30 days prior to the first solicitation of
Holders generally in connection therewith and not later than the date such
solicitation is completed.  If such a
record date is fixed, such request, demand, authorization, direction, notice,
consent, waiver or other Act may be given before or after such record date, but
only the Holders of record at the close of

 

15

 

business on such record date
shall be deemed to be Holders for the purposes of determining whether Holders
of the requisite proportion of Outstanding Securities have authorized or agreed
or consented to such request, demand, authorization, direction, notice, consent,
waiver or other Act, and for that purpose the Outstanding Securities shall be
computed as of such record date; provided, however, that no such
authorization, agreement or consent by the Holders on such record date shall be
deemed effective unless it shall become effective pursuant to the provisions of
this Indenture not later than eleven months after the record date, and that no
such authorization, agreement or consent may be amended, withdrawn or revoked
once given by a Holder, unless the Company shall provide for such amendment,
withdrawal or revocation in conjunction with such solicitation of
authorizations, agreements or consents or unless and to the extent required by
applicable law.  If the Company elects
not to fix in advance a record date, then the record date shall be 30 days
prior to the first solicitation of any such consent.

 

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

 

SECTION 105.               Notices,
Etc. to Trustee and Company.  Any
request, demand, authorization, direction, notice, consent, waiver or Act of
Holders or other documents provided or permitted by this Indenture to be made
upon, given or furnished to, or filed with,

 

(1)           the Trustee by any
Holder or by the Company shall be sufficient for every purpose hereunder if in
writing and mailed (first class postage prepaid) or sent by facsimile to the
Trustee at its Corporate Trust Office, Attention:  Chemtura Administrator, or

 

(2)           the Company by the
Trustee or by any Holder shall be sufficient for every purpose hereunder (unless
otherwise herein expressly provided) if in writing and mailed (first-class
postage prepaid) or sent by facsimile to the Company addressed to it at the
address of its principal executive offices specified in the first paragraph of
this Indenture, Attention:  Treasurer, or
at any other address previously furnished in writing to the Trustee by the
Company.

 

SECTION 106.               Notice
to Holders; Waiver.  Where this
Indenture provides for notice of any event to Holders by the Company or the
Trustee, such notice shall be sufficiently given (unless otherwise herein
expressly provided) if in writing and mailed, first-class postage prepaid, to
each such Holder affected by such event, at his address as it appears in the
Security Register, not later than the latest date, and not earlier than the
earliest date, prescribed for the giving of such notice.  In any case where notice to Holders is given
by mail, neither the failure to mail such notice, nor any defect in any notice
so mailed, to any particular Holder shall affect the sufficiency of such notice
with respect to other Holders.  Any
notice mailed to a Holder in the manner herein prescribed shall be conclusively
deemed to have been received by such Holder, whether or not such Holder
actually receives such notice.

 

16

 

In case, by reason of the suspension of or
irregularities in regular mail service or by reason of any other cause, it
shall be impractical to mail notice of any event to Holders when such notice is
required to be given pursuant to any provision of this Indenture, then any
manner of giving such notice as shall be satisfactory to the Trustee shall be
deemed to be sufficient giving of such notice for every purpose hereunder.

 

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

 

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

 

SECTION 107.               Effect
of Headings and Table of Contents.  The
Article and Section headings herein and the Table of Contents are for
convenience only and shall not affect the construction hereof.

 

SECTION 108.               Successors
and Assigns.  All covenants and
agreements in this Indenture by the Company shall bind its successors and
assigns, whether so expressed or not.

 

SECTION 109.               Separability
Clause.  In case any provision in
this Indenture or in any Security shall be invalid, illegal or unenforceable,
the validity, legality and enforceability of the remaining provisions shall not
in any way be affected or impaired thereby.

 

SECTION 110.               Benefits
of Indenture.  Nothing in this
Indenture or in the Securities, express or implied, shall give to any Person,
other than the parties hereto, any Authenticating Agent, any Paying Agent, any
Security Registrar and their successors hereunder and the Holders, any benefit
or any legal or equitable right, remedy or claim under this Indenture.

 

SECTION 111.               Governing
Law.  This Indenture and the
Securities shall be governed by and construed in accordance with the laws of
the State of New York, 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. 
This Indenture is subject to the provisions of the Trust Indenture Act
of 1939, as amended, that are required to be part of this Indenture and shall,
to the extent applicable, be governed by such provisions.

 

The Company and each Guarantor hereby
irrevocably and unconditionally waives, to the fullest extent it may legally
and effectively do so, any objection which it may now or hereafter have to the
laying of venue of any suit, action or proceeding arising out of or relating to
this Indenture or the Securities in any Federal or State court in the State of
New York, Borough of Manhattan.  Each of
the parties hereto hereby irrevocably waives, to the fullest extent permitted
by law, the defense of an inconvenient forum to the maintenance of such action
or proceeding in any such court.

 

17

 

SECTION 112.               Conflict
with Trust Indenture Act.  If and to
the extent that any provision hereof limits, qualifies or conflicts with the
duties imposed by any of Sections 310 to 318, inclusive, of the Trust
Indenture Act, through operation of Section 318(c) thereof, such imposed
duties shall control.

 

SECTION 113.               Legal
Holidays.  In any case where any
Interest Payment Date, Redemption Date, or Stated Maturity or Maturity of any
Security shall not be a Business Day at any Place of Payment, then (notwithstanding
any other provision of this Indenture or of any Security other than a provision
in the Securities of any series which specifically states that such provision
shall apply in lieu of this Section) payment of interest or principal (and
premium, if any) need not be made at such Place of Payment on such date, but
may be made on the next succeeding Business Day at such Place of Payment with
the same force and effect as if made on the Interest Payment Date or Redemption
Date, or at the Stated Maturity or Maturity; provided, however,
that no interest shall accrue for the period from and after such Interest
Payment Date, Redemption Date, Stated Maturity or Maturity, as the case may be.

 

ARTICLE TWO

 

SECURITY FORMS

 

SECTION 201.               Forms
Generally.  (a)  The Securities of each series shall be in substantially
the forms as shall be established by or pursuant to a Board Resolution or in
one or more indentures supplemental hereto, in each case with such appropriate
insertions, omissions, substitutions and other variations as are required or
permitted by this Indenture, and may have such letters, numbers or other marks
of identification and such legends or endorsements placed thereon as may be
required to comply with the rules of any securities exchange or as may,
consistently herewith, be determined by the officers executing such Securities,
as evidenced by their execution of the Securities.  The Initial Securities shall be in
substantially the form set forth in Exhibit A, which is
incorporated in and forms a part of this Indenture.  If the forms of Securities of any series are
established by action taken pursuant to a Board Resolution, 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 Company Order contemplated by Section 303 for the authentication
and delivery of such Securities.

 

The Trustee’s certificate of authentication
on all Securities shall be in substantially the form set forth in this Article
Two.

 

The definitive Securities shall be printed,
lithographed or engraved on steel engraved borders or may be produced in any
other manner, all as determined by the officers executing such Securities as
evidenced by their execution of such Securities.

 

Each Security shall be dated the date of its
authentication.

 

The terms and provisions contained in the Securities
shall constitute, and are expressly made, a part of this Indenture and, to the
extent applicable, the Company, and the Trustee,

 

18

 

by their execution and delivery
of this Indenture, expressly agree to such terms and provisions and agree to be
bound thereby.

 

SECTION 202.               Form
of Trustee’s Certificate of Authentication. 
Subject to Section 612, the Trustee’s certificate of authentication
shall be in substantially the following form or such other form as may be
required by the Trustee:

 

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

 

	
  WELLS FARGO
  BANK, N.A.,

  
	
  as Trustee

  
	
   

  	
   

  	
   

  
	
  By:

  	
   

  	
   

  
	
   

  	
  Authorized Signatory

  	
   

  

 

SECTION 203.               Securities
Issuable in Global Form.  If
Securities of or within a series are issuable in global form (a “Global
Security”), as specified as contemplated by Section 204 and Section 301,
then, notwithstanding clause (8) of Section 301, any such Security
shall represent such of the Outstanding Securities of such series as shall be
specified therein and may provide that it shall represent the aggregate amount
of Outstanding Securities of such series from time to time endorsed thereon and
that the aggregate amount of Outstanding Securities of such series represented
thereby may from time to time be increased or decreased to reflect
exchanges.  Any endorsement of a Global Security
to reflect the amount, or any increase or decrease in the amount, of Outstanding
Securities represented thereby shall be made by the Trustee in such manner and
upon instructions given by such Person or Persons as shall be specified therein
or in the Company Order to be delivered to the Trustee pursuant to
Section 303 or Section 304. 
Subject to the provisions of Section 303 and, if applicable,
Section 304, the Trustee shall deliver and redeliver any Security in permanent
global form in the manner and upon instructions given by the Person or Persons
specified therein or in the applicable Company Order.  If a Company Order pursuant to
Section 303 or Section 304 has been, or simultaneously is, delivered,
any instructions by the Company with respect to endorsement or delivery or redelivery
of a Security in global form shall be in writing but need not comply with
Section 102 and need not be accompanied by an Opinion of Counsel.

 

Notwithstanding the provisions of
Section 307, unless otherwise specified as contemplated by
Section 301, payment of principal of and any premium and interest on any Global
Security shall be made to the Person or Persons specified therein.

 

19

 

Notwithstanding the provisions of
Section 309 and except as provided in the preceding paragraph, the Company,
the Trustee and any agent of the Company and the Trustee shall treat as the
Holder of such principal amount of Outstanding Securities represented by a
permanent Global Security the Holder of such permanent Global Security in registered
form.

 

SECTION 204.               Book-Entry
Provisions for Global Securities.  (a)  Securities, including without limitation the
Initial Securities, shall be initially represented by one or more Global Securities
bearing legends as set forth in Exhibit B.  The Global Securities initially shall (i) be
registered in the name of the Depository or the nominee of such Depository, in
each case for credit to an account of an Agent Member and (ii) be delivered to
the Trustee as custodian for such Depository.

 

Members of, or direct or indirect
participants in, the Depository (“Agent Members”) shall have no rights
under this Indenture with respect to any Global Security held on their behalf
by the Depository, or the Trustee as its custodian, or under the Global Securities,
and the Depository may be treated by the Company, the Trustee and any agent of
the Company or the Trustee as the absolute owner of the Global Security for all
purposes whatsoever.  Notwithstanding the
foregoing, nothing herein shall prevent the Company, the Trustee or any agent
of the Company or the Trustee from giving effect to any written certification,
proxy or other authorization furnished by the Depository or impair, as between
the Depository and its Agent Members, the operation of customary practices
governing the exercise of the rights of a Holder of any Security.

 

(b)           Transfers
of Global Securities shall be limited to transfer in whole, but not in part, to
the Depository, its successors or their respective nominees.  Interests of beneficial owners in the Global Securities
may be transferred or exchanged for Physical Securities in accordance with the
rules and procedures of the Depository and the provisions of Section 205.  In addition, a Global Security shall be
exchangeable for Physical Securities if (i) the Depository (x) notifies the
Company that it is unwilling or unable to continue as depository for such
Global Security and the Company thereupon fails to appoint a successor
depository within 90 days or (y) has ceased to be a clearing agency registered
under the Exchange Act or (ii) there shall have occurred and be continuing an
Event of Default with respect to the Securities and a Holder shall so request
(in accordance with the Depository’s customary procedures).  In all cases, Physical Securities delivered
in exchange for any Global Security or beneficial interests therein shall be
registered in the names, and issued in any approved denominations, requested by
or on behalf of the Depository (in accordance with its customary procedures).

 

(c)           In
connection with any transfer or exchange of a portion of the beneficial
interest in any Global Security to beneficial owners of Physical Securities
pursuant to paragraph (b), the Registrar shall reflect on its books and records
the date and a decrease in the principal amount of the Global Security in an
amount equal to the principal amount of the beneficial interest in the Global Security
to be transferred or exchanged, and the Company shall execute, and the Trustee
shall upon receipt of a written order from the Company authenticate and make
available for delivery, one or more Physical Securities of like tenor and
amount.

 

(d)           In
connection with the transfer of Global Securities as an entirety to beneficial
owners pursuant to paragraph (b), the Global Securities shall be deemed to be
surrendered

 

20

 

to the Trustee for cancellation, and the
Company shall execute, and the Trustee shall authenticate and deliver, to each
beneficial owner identified by the Depository in writing in exchange for its
beneficial interest in the Global Securities, an equal aggregate principal
amount of Physical Securities of authorized denominations.

 

(e)           Any
beneficial interest in one of the Global Securities that is transferred to a
Person who takes delivery in the form of an interest in another Global Security
shall, upon transfer, cease to be an interest in such Global Security and
become an interest in such other Global Security and, accordingly, shall
thereafter be subject to all transfer restrictions and other procedures applicable
to beneficial interests in such other Global Security for as long as it remains
such an interest.

 

(f)            The
Holder of any Global Security may grant proxies and otherwise authorize any Person,
including Agent Members and Persons that may hold interests through Agent
Members, to take any action which a Holder is entitled to take under this Indenture
or the Securities.

 

SECTION 205.               CUSIP
Number.  The Company in issuing the Securities
may use a “CUSIP” number, and if so, such CUSIP number shall be included in
notices of redemption or exchange as a convenience to Holders; provided
that any such notice may state that no representation is made as to the correctness
or accuracy of the CUSIP number printed in the notice or on the Securities, and
that reliance may be placed only on the other identification numbers printed on
the Securities.  The Company shall
promptly notify the Trustee of any such CUSIP number used by the Company in
connection with the issuance of the Securities and of any change in the CUSIP
number.

 

ARTICLE THREE

 

THE SECURITIES

 

SECTION 301.               Amount
Unlimited; Issuable in Series.  The
aggregate principal amount of Securities which may be authenticated and
delivered under this Indenture is unlimited.

 

The Securities may be issued in one or more
series.  Except with respect to the
Initial Securities (which shall be in the form of Exhibit A hereto),
there shall be established in one or more Board Resolutions or pursuant to
authority granted by one or more Board Resolutions and, subject to Section 303,
set forth in, or determined in the manner provided in, an Officers’
Certificate, or established in one or more indentures supplemental hereto,
prior to the issuance of Securities of any series, any or all of the following,
as applicable (each of which (except for the matters set forth in clauses (1),
(2) and (14) below), if so provided, may be determined from time to time by the
Company with respect to unissued Securities of the series and set forth in such
Securities of the series when issued from time to time):

 

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

 

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

 

21

 

authenticated
and delivered upon registration of transfer of, or in exchange for, or in lieu
of, other Securities of the series pursuant to Section 304, 305, 306, 906, 1107
or 1305);

 

(3)           the date or dates, or
the method by which such date or dates will be determined or extended, on which
the principal of the Securities of the series is payable;

 

(4)           the rate or rates at
which the Securities of the series shall bear interest, if any, or the method
by which such rate or rates shall be determined, the date or dates from which
such interest shall accrue, or the method by which such date or dates shall be
determined, the Interest Payment Dates on which such interest shall be payable
and the Regular Record Date, if any, for the interest payable on any Security
on any Interest Payment Date, or the method by which such date or dates shall
be determined, and the basis upon which interest shall be calculated if other
than on the basis of a 360-day year of twelve 30-day months;

 

(5)           the place or places
where the principal of (and premium, if any) and any interest on Securities of
the series shall be payable, any Securities of the series may be surrendered
for registration of transfer, Securities of the series may be surrendered for
exchange and, if different than the location specified in Section 105, the
place or places where notices or demands to or upon the Company in respect of
the Securities of the series and this Indenture may be served;

 

(6)           the period or periods
within which, the price or prices at which, the currency in which, and other
terms and conditions upon which Securities of the series may be redeemed, in
whole or in part, at the option of the Company, if the Company is to have that
option;

 

(7)           if other than minimum denominations
of $2,000 and any integral multiple of $1,000 thereof, the denominations in
which any Securities of the series shall be issuable;

 

(8)           if other than the
Trustee or the Company, the identity of each Security Registrar and/or Paying Agent;

 

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

 

22

 

(10)         if other than Dollars,
the currency in which payment of the principal of (and premium, if any) or
interest, if any, on the Securities of the series shall be payable or in which
the Securities of the series shall be denominated and the particular provisions
applicable thereto;

 

(11)         whether the amount of
payments of principal of (and premium, if any) or interest on the Securities of
the series may be determined with reference to a formula or other method and
the manner in which such amounts shall be determined;

 

(12)         any provisions in
modification of, in addition to or in lieu of the provisions of Article
Fourteen that shall be applicable to the Securities of the series;

 

(13)         provisions, if any,
granting special rights to the Holders of Securities of the series upon the
occurrence of such events as may be specified;

 

(14)         any deletions from,
modifications of or additions to the Events of Default or covenants of the
Company with respect to Securities of the series, whether or not such Events of
Default or covenants are consistent with the Events of Default or covenants set
forth herein;

 

(15)         the Person to whom any
interest on any Security of the series shall be payable, if other than the
Person in whose name that Security (or one or more Predecessor Securities) is
registered at the close of business on the Regular Record Date for such
interest and the extent to which, or the manner in which, any interest payable
on a temporary global Security on an Interest Payment Date will be paid if
other than in the manner provided in Section 304;

 

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

 

(17)         if the Securities of the
series are to be issued upon the exercise of warrants, the time, manner and
place for such Securities to be authenticated and delivered;

 

23

 

(18)         whether and under what
circumstances the Company will pay additional amounts on the Securities of the
series in respect of certain taxes (and the terms of any such payment) and, if
so, whether the Company will have the option to redeem such Securities rather
than pay such additional amounts (and the terms of any such option); and

 

(19)         any other terms,
conditions, rights and preferences (or limitations on such rights and
preferences) relating to the series (which terms shall not be inconsistent with
the requirements of the Trust Indenture Act or the provisions of this Indenture).

 

All Securities of any one series shall be
substantially identical except as to denomination and except as may otherwise
be provided in or pursuant to such Board Resolution (subject to
Section 303) and set forth in such Officers’ Certificate or in any such
indenture supplemental hereto.  Not all
Securities of any one series need be issued at the same time, and, unless
expressly provided for in such Securities, a series may not be reopened for issuances
of additional Securities of such series.

 

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

 

SECTION 302.               Denominations.  All Securities shall be issuable in such
denominations as shall be specified as contemplated by Section 301.  With respect to Securities of any series
denominated in Dollars, in the absence of any such provisions, the Securities
of such series, other than Securities issued in global form (which may be of
any denomination), shall be issuable in minimum denominations of $2,000 and any
integral multiple of $1,000 thereof.

 

SECTION 303.               Execution,
Authentication, Delivery and Dating. 
The Securities shall be executed on behalf of the Company by its
Chairman of the Board, its Chief Operating Officer, its President, any Senior
Vice President or a Vice President.  The
signature of any of these officers on the Securities may be the manual or
facsimile signature of the present or any future such authorized officer and
may be imprinted or otherwise reproduced on the Securities.

 

Securities bearing the manual or facsimile
signatures of individuals who were at any time the proper officers of the Company
shall bind the Company, notwithstanding that such individuals or any of them
have ceased to hold such offices prior to the authentication and delivery of
such Securities or did not hold such offices at the date of such Securities.

 

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 Company Order for the authentication and delivery of such Securities,
and the Trustee in accordance with the Company Order shall authenticate and
deliver such Securities.  If not all the
Securities of any series are to be issued at one time and if the Board
Resolution or supplemental indenture establishing such series shall so permit,
such Company Order may set forth procedures acceptable to the Trustee for the
issuance of such Securities and determining terms of particular Securities of
such series such as interest rate, maturity date, date of issuance and date
from which interest shall accrue.

 

24

 

In authenticating such Securities, and
accepting the additional responsibilities under this Indenture in relation to
such Securities, the Trustee shall be entitled to receive (except with respect
to the Initial Securities), and (subject to TIA Section 315(a) through 315(d))
shall be fully protected in relying upon, an Opinion of Counsel stating:

 

(a)           that
the form or forms of such Securities have been established in conformity with
the provisions of this Indenture;

 

(b)           if
the terms of such Securities have been established by or pursuant to a Board
Resolution, that the terms of such Securities have been established in
conformity with the provisions of this Indenture; and

 

(c)           that
such Securities when completed by appropriate insertions and executed and delivered
by the Company to the Trustee for authentication in accordance with this
Indenture, authenticated and delivered by the Trustee in accordance with this
Indenture and issued by the Company in the manner and subject to any conditions
specified in such Opinion of Counsel, will constitute the valid and binding
obligations of the Company, enforceable in accordance with their terms, subject
to applicable bankruptcy, insolvency, reorganization, fraudulent conveyance and
other similar laws of general applicability relating to or affecting the
enforcement of creditors’ rights, and to general equitable principles.

 

Notwithstanding the provisions of
Section 301 and of the preceding two paragraphs, if not all the Securities
of any series are to be issued at one time, it shall not be necessary to
deliver the Officers’ Certificate otherwise required pursuant to Section 301
or the Company Order and Opinion of Counsel otherwise required pursuant to the preceding
two paragraphs prior to or at the time of issuance of each Security, but such
documents shall be delivered prior to or at the time of issuance of the first
Security of such series.

 

The Trustee shall not be required to
authenticate and deliver any 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 which is not
reasonably acceptable to the Trustee.

 

Each Security shall be dated the date of its
authentication.

 

No Security shall be entitled to any benefit
under this Indenture or be valid or obligatory for any purpose unless there appears
on such Security a certificate of authentication substantially in the form
provided for herein, duly executed by the Trustee by manual signature of an
authorized officer, and such certificate upon any Security shall be conclusive
evidence, and the only evidence, that such Security has been duly authenticated
and delivered hereunder and is entitled to the benefits of this Indenture.

 

25

 

 

Each Guarantor shall execute a Guarantee in
the manner set forth in Section 1507.

 

SECTION 304.               Temporary
Securities.  Pending the preparation
of definitive Securities of any series, the Company may execute, and upon
Company Order the Trustee shall authenticate and deliver, temporary Securities
which are printed, lithographed, typewritten, mimeographed or otherwise
produced, in any authorized denomination, substantially of the tenor of the
definitive Securities in lieu of which they are issued and with such
appropriate insertions, omissions, substitutions and other variations as the
officers executing such Securities may determine, as evidenced by their
execution of such Securities.  In the
case of Securities of any series, such temporary Securities may be Global Securities.

 

If temporary Securities of any series are
issued, the Company will cause definitive Securities of that series to be prepared
without unreasonable delay.  After the
preparation of definitive Securities of such series, the temporary Securities
of such series shall be exchangeable for definitive Securities of such series,
upon surrender of the temporary Securities of such series at the office or
agency of the Company in a Place of Payment for that series, without charge to
the Holder.  Upon surrender for
cancellation of any one or more temporary Securities of any series the Company
shall execute and the Trustee shall authenticate and deliver in exchange
therefor a like principal amount of definitive Securities of the same series of
authorized denominations.  Until so
exchanged the temporary Securities of any series shall in all respects be
entitled to the same benefits under this Indenture as definitive Securities of
such series.

 

SECTION 305.               Registration
of Transfer and Exchange.

 

Upon surrender for registration of transfer
of any Security of any series at the office or agency of the Company in a Place
of Payment for that series, the Company shall execute, and the Trustee shall
authenticate and deliver, in the name of the designated transferee, one or more
new Securities of the same series, of any authorized denominations and of a
like aggregate principal amount and tenor.

 

At the option of the Holder, Securities of
any series may be exchanged for other Securities of the same series, of any authorized
denominations and of a like aggregate principal amount, upon surrender of the Securities
to be exchanged at such office or agency. 
Whenever any Securities are so surrendered for exchange, the Company
shall execute, and the Trustee shall authenticate and deliver, the Securities
which the Holder making the exchange is entitled to receive.

 

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

 

Every Security presented or surrendered for
registration of transfer or for exchange shall (if so required by the Company
or the Registrar) be duly endorsed, or be accompanied

 

26

 

by a written instrument of transfer, in form
satisfactory to the Company and the Registrar, duly executed by the Holder
thereof or his attorney duly authorized in writing.

 

No service charge shall be made for any
registration of transfer or exchange of Securities, but the Company may require
payment of a sum sufficient to cover any tax or other governmental charge that
may be imposed in connection with any registration of transfer or exchange of
Securities, other than exchanges pursuant to Section 304, 906, 1107 or 1305 not
involving any transfer.

 

The Company shall not be required (i) to
issue, register the transfer of or exchange Securities of any series during a
period beginning at the opening of business 15 Business Days before the
day of the selection for redemption of Securities of that series under Section 1103
or 1203 and ending at the close of business on the day of the mailing of the
relevant notice of redemption or (ii) to register the transfer of or
exchange any Security so selected for redemption in whole or in part, except
the unredeemed portion of any Security being redeemed in part, or (iii) to
issue, register the transfer of or exchange any Security which has been
surrendered for repayment at the option of the Holder, except the portion, if
any, of such Security not to be so repaid.

 

SECTION 306.               Mutilated,
Destroyed, Lost and Stolen Securities. 
If any mutilated Security is surrendered to the Trustee, the Company
shall execute and the Trustee shall authenticate and deliver in exchange
therefor a new Security of the same series and of like tenor and principal
amount and bearing a number not contemporaneously outstanding or, in case any
such mutilated Security has become or is about to become due and payable, the
Company in its discretion may, instead of issuing a new Security, pay such
Security.

 

If there shall be delivered to the Company
and to the Trustee (i) evidence to their satisfaction of the destruction,
loss or theft of any Security and (ii) such security or indemnity as may
be required by them to save each of them and any agent of either of them
harmless, then, in the absence of notice to the Company or the Trustee that
such Security has been acquired by a bona fide purchaser, the Company shall
execute and upon receipt of a Company Order the Trustee shall authenticate and
deliver, in lieu of any such destroyed, lost or stolen Security, a new Security
of the same series and of like tenor and principal amount and bearing a number
not contemporaneously outstanding, or, in case any such destroyed, lost or
stolen Security has become or is about to become due and payable, the Company
in its discretion may, instead of issuing a new Security pay such Security.

 

Upon the issuance of any new Security under
this Section 306, the Company may require the payment of a sum sufficient to
cover any tax or other governmental charge that may be imposed in relation
thereto and any other expenses (including the fees and expenses of the Trustee)
connected therewith.

 

Every new Security of any series issued
pursuant to this Section 306 in lieu of any destroyed, lost or stolen Security
shall constitute a valid contractual obligation of the Company evidencing the
same debt as the Security in lieu of which it is issued, whether or not the
destroyed, lost or stolen Security shall be at any time enforceable by anyone,
and shall be entitled

 

27

 

to all the benefits of this Indenture equally
and proportionately with any and all other Securities of that series.

 

The provisions of this Section 306 are
exclusive and shall preclude (to the extent lawful) all other rights and remedies
with respect to the replacement or payment of mutilated, destroyed, lost or
stolen Securities.

 

SECTION 307.               Payment
of Interest; Interest Rights Preserved. 
(a)  Unless otherwise provided as
contemplated by Section 301 with respect to any series of Securities, interest
on any Security which is payable, and is punctually paid or duly provided for,
on any Interest Payment Date shall be paid to the Person in whose name such
Security (or one or more Predecessor Securities) is registered at the close of
business on the Regular Record Date for such interest at the office or agency
of the Company maintained for such purpose pursuant to Section 1002; provided,
however, that each installment of interest on any Security may at the
Company’s option be paid by (i) mailing a check for such interest, payable to
or upon the written order of the Person entitled thereto pursuant to Section
309, to the address of such Person as it appears on the Security Register or
(ii) transferring such interest to an account maintained by the payee located
inside the United States.

 

Any interest on any Security of any series
which is payable, but is not punctually paid or duly provided for, on any Interest
Payment Date (herein called “Defaulted Interest”) shall forthwith cease
to be payable to the Holder on the relevant Regular Record Date by virtue of
having been such Holder, and such Defaulted Interest may be paid by the
Company, at its election in each case, as provided in clause (1) or (2) below:

 

(1)           The Company may elect
to make payment of any Defaulted Interest to the Persons in whose names the Securities
of such series (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
Security of such series and the date of the proposed payment, and at the same
time the Company shall deposit with the Trustee an amount of money in the currency
in which the Securities of such series are payable (except as otherwise
specified pursuant to Section 301 for the Securities of such series) equal to
the aggregate amount proposed to be paid in respect of such Defaulted Interest
or shall make arrangements satisfactory to the Trustee for such deposit on or
prior to the date of the proposed payment, such money when 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 be not more than 15 days and not less than 10 days prior
to the date of the proposed payment and not less than 10 days after the receipt
by the Trustee of the notice of the proposed payment.  The Trustee shall promptly notify the Company
of such Special Record Date and, in the name and at the expense of the Company,
shall cause notice of the proposed payment of such Defaulted Interest and the
Special Record Date therefor to be mailed, first-class postage prepaid, to each
Holder of Securities of such series at his address as it appears in the
Security Register, not less than

 

28

 

10 days prior
to such Special Record Date.  Notice of
the proposed payment of such Defaulted Interest and the Special Record Date
therefor having been so mailed, such Defaulted Interest shall be paid to the
Persons in whose name the Securities of such series (or their respective
Predecessor Securities) are registered at the close of business on such Special
Record Date and shall no longer be payable pursuant to the following clause
(2).

 

(2)           The Company may make
payment of any Defaulted Interest on the Securities of any series 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.

 

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

 

SECTION 308.       [Reserved].  

 

29

 

SECTION 309.               Persons
Deemed Owners.  Prior to due
presentment of a Security for registration of transfer, the Company, the
Trustee and any agent of the Company or the Trustee may treat the Person in
whose name such Security is registered as the legal owner of such Security for
the purpose of receiving payment of principal of (and premium, if any) and
(subject to Sections 305 and 307) interest on such Security and for all
other purposes whatsoever, whether or not such Security be overdue, and neither
the Company, the Trustee nor any agent of the Company or the Trustee shall be affected
by notice to the contrary.

 

None of the Company, the Trustee, any Paying
Agent, or any Security Registrar will have any responsibility or liability for
any aspect of the records relating to or payments made on account of beneficial
ownership interests of a Global Security or for maintaining, supervising or
reviewing any records relating to such beneficial ownership interests.

 

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

 

SECTION 310.               Cancellation.  All Securities surrendered for payment,
redemption, repayment at the option of the Holder, registration of transfer or
exchange shall, if surrendered to any Person other than the Trustee, be
delivered to the Trustee.  All Securities
so delivered to the Trustee shall be promptly cancelled by it.  The Company may at any time deliver to the
Trustee for cancellation any Securities previously authenticated and delivered
hereunder which the Company may have acquired in any manner whatsoever, and may
deliver to the Trustee (or to any other Person for delivery to the Trustee) for
cancellation any Securities previously authenticated hereunder which the Company
has not issued and sold, and all Securities so delivered, shall be promptly
cancelled by the Trustee.  If the Company
shall so 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 surrendered to the Trustee for cancellation.  No Securities shall be authenticated in lieu
of or in exchange for any Securities cancelled as provided in this Section,
except as expressly permitted by this Indenture.  All cancelled Securities shall be destroyed
by the Trustee (subject to the record retention requirement of the Exchange
Act) and upon written request of the Company the Trustee shall deliver its
certificate of such destruction to the Company.

 

30

 

SECTION 311.               Computation
of Interest.  Except as otherwise
specified as contemplated by Section 301 with respect to any Securities,
interest on the Securities of each series shall be computed on the basis of a
360-day year of twelve 30-day months.

 

SECTION 312.       [Reserved].  

 

SECTION 313.       [Reserved]

 

SECTION 314.               Registrar
and Paying Agent.  The Company shall
maintain an office or agency where Securities may be presented for registration
of transfer or for exchange (the “Registrar”), and an office or agency
where Securities may be presented for payment (the “Paying Agent”) and
an office or agency where notices and demands to or upon the Company, if any,
in respect of the Securities and this Indenture may be served.  The Registrar shall keep a register of the
Securities and of their transfer and exchange. 
The Company may have one or more additional Paying Agents.  The term “Paying Agent” includes any
additional Paying Agent.  Neither the
Company nor any Affiliate thereof may act as a Paying Agent.

 

31

 

 

The Company shall enter into an appropriate
agency agreement, which shall incorporate the provisions of the TIA, with any
Agent that is not a party to this Indenture. 
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, or fails to give the foregoing notice, the Trustee shall act
as such and shall be entitled to appropriate compensation in accordance with
Section 607.

 

The Company initially appoints the Trustee as
Registrar, Paying Agent and Agent for service of notices and demands in
connection with the Securities and this Indenture.

 

SECTION 315.               Paying
Agent To Hold Money in Trust.  Each
Paying Agent shall hold in trust for the benefit of the Holders or the Trustee
all money held by the Paying Agent for the payment of principal of or premium
or interest on the Securities (whether such money has been paid to it by the Company
or any other obligor on the Securities), and the Company and the Paying Agent
shall notify the Trustee of any default by the Company (or any other obligor on
the Securities) in making any such payment. 
Money held in trust by the Paying Agent need not be segregated except as
required by law.  The Company at any time
may require the Paying Agent to pay all money held by it to the Trustee and
account for any funds disbursed and the Trustee may at any time during the
continuance of any Event of Default specified in Section 501(1) or (2), upon
written request to the Paying Agent, require such Paying Agent to pay forthwith
all money so held by it to the Trustee and to account for any funds
disbursed.  Upon making such payment, the
Paying Agent shall have no further liability for the money delivered to the
Trustee.  The Paying Agent shall invest
money held by it only upon the written instructions of the Company.

 

SECTION 316.               Noteholder
Lists.  The Trustee shall preserve in
as current a form as is reasonably practicable the most recent list available
to it of the names and addresses of the Holders.  If the Trustee is not the Registrar, the
Company shall furnish to the Trustee at least five Business Days before each
Interest Payment Date, and at such other times as the Trustee may request in
writing, a list in such form and as of such date as the Trustee may reasonably
require of the names and addresses of the Holders.

 

SECTION 317.               Transfer
and Exchange.  Subject to
Section 204, when Securities are presented to the Registrar with a request
from the Holder of such Securities to register a transfer or to exchange them
for an equal principal amount of Securities of other authorized denominations,
the Registrar shall register the transfer as requested.  Every Security presented or surrendered for
registration of transfer or exchange shall be duly endorsed or be accompanied
by a written instrument of transfer in form satisfactory to the Company and the
Registrar, duly executed by the Holder thereof or his attorneys duly authorized
in writing.  To permit registrations of
transfers and exchanges, the Company shall issue and execute and the Trustee
shall authenticate new Securities evidencing such transfer or exchange at the
Registrar’s request.  No service

 

32

 

charge shall be made to the Holder for any
registration of transfer or exchange. 
The Company may require from the Holder payment of a sum sufficient to
cover any transfer taxes or other governmental charge that may be imposed in
relation to a transfer or exchange, but this provision shall not apply to any
exchange pursuant to Section 304 or 1107, (in which events the Company
shall be responsible for the payment of such taxes).  The Registrar shall not be required to exchange
or register a transfer of any Security for a period of 15 days immediately
preceding the mailing of notice of redemption of Securities to be redeemed or
of any Security selected, called or being called for redemption except the
unredeemed portion of any Security being redeemed in part.

 

Any Holder of the Global Security or a
beneficial interest in the Global Security shall, by acceptance of such Global Security
or beneficial interest, agree that transfers of the beneficial interests in
such Global Security may be effected only through a book entry system
maintained by the Holder of such Global Security (or its agent), and that
ownership of a beneficial interest in the Global Security shall be required to
be reflected in a book entry.

 

Except as expressly provided herein, neither
the Trustee nor the Registrar shall have any duty to monitor the Company’s
compliance with or have any responsibility with respect to the Company’s
compliance with any Federal or state securities laws.

 

SECTION 318.               Outstanding
Securities.  The Securities
outstanding at any time are all Securities that have been authenticated by the
Trustee except for (a) those canceled by it, (b) those delivered to
it for cancellation, (c) to the extent set forth in Sections 1401, on
or after the date on which the conditions set forth in Section 1401 have been
satisfied, those Securities theretofore authenticated and delivered by the
Trustee hereunder and (d) those described in this Section 318 as not
outstanding.

 

If a Security is replaced pursuant to
Section 306, it ceases to be outstanding unless the Trustee receives proof
satisfactory to it that the replaced Security is held by a bona fide purchaser
in whose hands such Security is a legal, valid and binding obligation of the
Company.

 

If the Paying Agent holds, in its capacity as
such, on the Maturity Date, money sufficient to pay all accrued interest and
principal with respect to the Securities payable on that date and is not
prohibited from paying such money to the Holders thereof pursuant to the terms
of this Indenture, then on and after that date such Securities cease to be
outstanding and interest on them ceases to accrue.

 

ARTICLE FOUR

 

SATISFACTION AND DISCHARGE

 

SECTION 401.               Satisfaction
and Discharge of Indenture.  This
Indenture shall upon Company Request cease to be of further effect with respect
to any series of Securities (except as to any surviving rights of registration
of transfer or exchange of Securities of such series herein expressly provided
for) and the Trustee, at the expense of the Company, shall execute proper instruments
acknowledging satisfaction and discharge of this Indenture as to such series
when

 

33

 

(1)           either

 

(A)          all
Securities of such series theretofore authenticated and delivered (other than
(i) Securities of such series which have been destroyed, lost or stolen
and which have been replaced or paid as provided in Section 306 and
(ii) Securities of such series for whose payment money has theretofore
been deposited with the Trustee or any Paying Agent and thereafter repaid to
the Company, as provided in Section 1003) have been delivered to the
Trustee for cancellation; or

 

(B)           all
Securities of such series not theretofore delivered to the Trustee for cancellation

 

 (i)         have
become due and payable, or

 

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

 

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

 

and the Company, in the case of (i), (ii) or (iii) above, has deposited
or caused to be deposited with the Trustee as trust funds in trust for the
purpose an amount, in the currency in which the Securities of such series are
payable, sufficient to pay and discharge the entire indebtedness on such Securities
not theretofore delivered to the Trustee for cancellation, for principal (and
premium, if any) and interest to the date of such deposit (in the case of
Securities which have become due and payable) or to the Stated Maturity or
Redemption Date, as the case may be;

 

(2)           the Company has paid or
caused to be paid all other sums payable hereunder by the Company; and

 

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

 

Notwithstanding the satisfaction and
discharge of this Indenture, the obligations of the Company to the Trustee under
Section 607, the obligations of the Trustee to any Authenticating Agent
under Section 612 and, if money shall have been deposited with the Trustee
pursuant to subclause (B) of clause (1) of this Section, the obligations of the
Trustee under Section 402 and the last paragraph of Section 1003
shall survive.

 

34

 

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

 

ARTICLE FIVE

 

REMEDIES

 

SECTION 501.               Events
of Default.  “Event of Default”,
wherever used herein with respect to Securities of any series, means any one of
the following events (whatever the reason for such Event of Default and whether
it shall be voluntary or involuntary or be effected by operation of law or
pursuant to any judgment, decree or order of any court or any order, rule or
regulation of any administrative or governmental body):

 

(1)           default in the payment
of any interest upon any Security of that series when such interest becomes due
and payable, and continuance of such default for a period of 30 days;

 

(2)           default in the payment
of the principal of or any premium on any Security of that series at its Maturity;

 

(3)           default in the
performance, or breach, of any covenant or warranty of the Company in this
Indenture (other than a covenant or warranty, a default in whose performance or
whose breach is specifically dealt with elsewhere in this Indenture), and
continuance of such default or breach for a period of 90 days after there has
been given, by registered or certified mail, to the Company by the Trustee or
to the Company and the Trustee by the Holders of at least 25% in principal
amount of all Outstanding Securities a written notice specifying such default
or breach and requiring it to be remedied and stating that such notice is a “Notice
of Default” hereunder;

 

(4)           (A) default under any
indenture or instrument evidencing or under which the Company or any Subsidiary
has outstanding any Debt (other than an obligation payable on demand or
maturing less than 12 months from the date such Debt is incurred) in any
individual instance in excess of an amount equal to the greater of (a) 5% of
Consolidated Shareholders’ Equity or (b) $35 million, shall occur and be
continuing and, if such Debt has not already matured in accordance with its
terms, such Debt shall have been accelerated so that the same shall be or
become due and payable prior to the date on which the same would otherwise have
become due and payable, and such acceleration shall not be rescinded or
annulled within 30 days after notice thereof shall have been given to the
Company by the Trustee or to the Company and the Trustee by the Holders of at
least 25% in aggregate principal amount of all Outstanding Securities or (B)
default in any

 

35

 

payment when
due at final maturity of any such Debt, including any applicable grace period;

 

(5)           prior to a Fall-Away
Event, a defeasance or a covenant defeasance, the failure of a Guarantee by one
or more Guarantors that, individually or in the aggregate, constitute a
Significant Guarantor to be in full force and effect, or the denial or disaffirmance
by such entity or entities thereof;

 

(6)           failure to comply with
Section 801;

 

(7)           failure to make a
Change of Control Offer pursuant to Section 1009;

 

(8)           the Company or any
Significant Subsidiary of the Company:

 

(i)            commences
a voluntary case under any Bankruptcy Law,

 

(ii)           consents
to the entry of an order for relief against it in an involuntary case,

 

(iii)          consents
to the appointment of a custodian or receiver of it or for all or substantially
all of its property, or

 

(iv)          makes
a general assignment for the benefit of its creditors; or

 

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

 

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

 

(ii)           appoints
a custodian or receiver of the Company or any Significant Subsidiary of the
Company or for all or substantially all of the property of any of the
foregoing, or

 

(iii)          orders
the liquidation of the Company or any of its Significant Subsidiaries,

 

and the order or decree remains unstayed and
in effect for 60 consecutive days; or

 

(10)         any other Event of
Default provided with respect to Securities of that series.

 

SECTION 502.               Acceleration
of Maturity; Rescission and Annulment. 
If an Event of Default described in clause (1), (2) or (11) of
Section 501 with respect to Securities of any series at the time Outstanding
occurs and is continuing, then in every such case the Trustee or the Holders of
not less than 25% in principal amount of the Outstanding Securities of

 

36

 

that series may declare the principal amount
(or, if the Securities of that series are Original Issue Discount Securities,
such portion of the principal amount as may be specified in the terms of that
series) of all of the Securities of that series to be due and payable immediately,
by a notice in writing to the Company (and to the Trustee if given by Holders),
and upon any such declaration such principal amount (or specified portion
thereof) shall become immediately due and payable.  If an Event of Default described in clause (3),
(4), (5), (6) or (7) of Section 501 occurs and is continuing, then in
every such case the Trustee or the Holders of not less than 25% in principal
amount of all the Securities then Outstanding may declare the principal amount
(or, if any such Securities are Original Issue Discount Securities, such
portion of the principal amount as may be specified in the terms of that
series) of all of the Outstanding Securities to be due and payable immediately,
by a notice in writing to the Company (and to the Trustee if given by the
Holders) and upon any such declaration such principal amount (or specified
portion thereof) shall become immediately due and payable.  If an Event of Default described in clause (8)
or (9) of Section 501 occurs and is continuing, all outstanding Securities
will become due and payable immediately without further action or notice.

 

At any time after such a declaration of
acceleration with respect to Securities of any series (or of all series, as the
case may be) has been made and before a judgment or decree for payment of the
money due has been obtained by the Trustee as hereinafter in this Article Five  provided, the Holders of a majority in
principal amount of the Outstanding Securities of that series (or of all
series, as the case may be), by written notice to the Company and the Trustee,
may rescind and annul such declaration and its consequences if

 

(1)           the Company has paid or
deposited with the Trustee a sum sufficient to pay in the currency in which the
Securities of such series are payable (except as otherwise specified pursuant
to Section 301 for the Securities of such series),

 

(A)          all overdue interest on
all Outstanding Securities of that series (or of all series, as the case may
be),

 

(B)           all unpaid principal of
(and premium, if any, on) any Outstanding Securities of that series (or of all
series, as the case may be) which has become due otherwise than by such
declaration of acceleration, and interest on such unpaid principal at the rate
or rates prescribed therefor in such Securities,

 

(C)           to the extent that
payment of such interest is lawful, interest upon overdue interest at the rate
or rates prescribed therefor in such Securities, and

 

(D)          all sums paid or
advanced by the Trustee hereunder and the reasonable compensation, expenses, disbursements
and advances of the Trustee, its agents and counsel; and

 

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

 

37

 

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

 

SECTION 503.               Collection
of Indebtedness and Suits for Enforcement by Trustee.  The Company covenants that if

 

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

 

(2)           default is made in the
payment of the principal of (or premium, if any, on) any Security at the
Maturity thereof,

 

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

 

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

 

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

 

SECTION 504.               Trustee
May File Proofs of Claim.  In case of
the pendency of any receivership, insolvency, liquidation, bankruptcy,
reorganization, arrangement, adjustment, composition or other judicial
proceeding relative to the Company or any other obligor upon the Securities or
the property of the Company or of such other obligor or their creditors, the
Trustee (irrespective of whether the principal of the Securities shall then be
due and payable as therein expressed or by declaration or otherwise and irrespective
of whether the Trustee shall have made any demand on the Company for the
payment of overdue principal, premium, if any, or interest) shall be entitled
and empowered, by intervention in such proceeding or otherwise,

 

(i)      to file and prove a claim for
the whole amount of principal (and premium, if any), or such portion of the
principal amount of any series of Original Issue Discount

 

38

 

Securities as
may be specified in the terms of such series, and interest owing and unpaid in
respect of the Securities and to file such other papers or documents as may be
necessary or advisable in order to have the claims of the Trustee (including
any claim for the reasonable compensation, expenses, disbursements and advances
of the Trustee, its agents and counsel) and of the Holders allowed in such
judicial proceeding, and

 

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

 

and any custodian, receiver, assignee,
trustee, liquidator, sequestrator or other similar official in any such
judicial proceeding is hereby authorized by each Holder to make such payments
to the Trustee and, in the event that the Trustee shall consent to the making
of such payments directly to the Holders, to pay to the Trustee any amount due
it for the reasonable compensation, expenses, disbursements and advances of the
Trustee, its agents and counsel, and any other amounts due the Trustee under
Section 607.

 

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

 

SECTION 505.               Trustee
May Enforce Claims Without Possession of Securities.  All rights of action and claims under this
Indenture or the Securities may be prosecuted and enforced by the Trustee
without the possession of any of the Securities or the production thereof in
any proceeding relating thereto, and any such proceeding instituted by the
Trustee shall be brought in its own name as trustee of an express trust, and any
recovery of judgment shall, after provision for the payment of the reasonable
compensation, expenses, disbursements and advances of the Trustee, its agents
and counsel, be for the ratable benefit of the Holders of the Securities in respect
of which such judgment has been recovered.

 

SECTION 506.               Application
of Money Collected.  Any money or
property collected by the Trustee pursuant to this Article shall be applied in
the following order, at the date or dates fixed by the Trustee and, in case of
the distribution of such money on account of principal (or premium, if any, on)
or interest, upon presentation of the Securities, and the notation thereon of
the payment if only partially paid and upon surrender thereof if fully paid:

 

First:  To the payment of all amounts due the Trustee
under Section 607;

 

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

 

Third:  The balance, if any, to the Company or any
other Person or Persons entitled thereto.

 

39

 

SECTION 507.               Limitation
on Suits.  No Holder of any Security
of any series shall have any right to institute any proceeding, judicial or
otherwise, with respect to this Indenture, or for the appointment of a receiver
or trustee, or for any other remedy hereunder, unless

 

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

 

(2)           the Holders of not less
than 25% in principal amount of the Outstanding Securities of that series in
the case of any Event of Default described in clause (1), (2) or (11) of
Section 501, or, in the case of any Event of Default described in clause
(3), (4), (5), (6), (7), (8) or (9) of Section 501, the Holders of not
less than 25% in principal amount of all Outstanding Securities, shall have
made written request to the Trustee to institute proceedings in respect of such
Event of Default in its own name as Trustee hereunder;

 

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

 

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

 

(5)           no direction
inconsistent with such written request has been given to the Trustee during
such 60-day period by the Holders of not less than a majority in principal
amount of the Outstanding Securities of that series in the case of any Event of
Default described in clause (1), (2) or (11) of Section 501, or, in the case of
any Event of Default described in clause (3), (4), (5), (6), (7) or (8) of
Section 501, by the Holders of not less than a majority in principal amount of
all Outstanding Securities;

 

it being understood and intended that no one
or more of such Holders shall have any right in any manner whatever by virtue
of, or by availing of, any provision of this Indenture to affect, disturb or prejudice
the rights of any other Holders of Securities of the same series, in the case
of any Event of Default described in clause (1), (2) or (11) of Section 501, or
of Holders of all Securities in the case of any Event of Default described in
clause (3), (4), (5), (6), (7) or (8) of Section 501, or to obtain or to
seek to obtain priority or preference over any other of such Holders or to
enforce any right under this Indenture, except in the manner herein provided
and for the equal and ratable benefit of all Holders of Securities of the same
series, in the case of any Event of Default described in clause (1), (2) or (11)
of Section 501, or of Holders of all Securities in the case of any Event of
Default described in clause (3), (4), (5), (6), (7) or (8) of Section 501.

 

SECTION 508.               Unconditional
Right of Holders to Receive Principal, Premium and Interest.  Notwithstanding any other provision in this
Indenture, the Holder of any Security shall have the right, which is absolute
and unconditional, to receive payment, as provided herein (including, if
applicable, Article Fourteen) and in such Security, of the principal of (and
premium, if any), including Redemption Price and Repayment Price, and (subject
to Section 307) interest on, such Security on the respective due dates
therefor and to institute suit for the enforcement of any such payment, and
such rights shall not be impaired without the consent of such Holder.

 

40

 

SECTION 509.               Restoration
of Rights and Remedies.  If the
Trustee or any Holder has instituted any proceeding to enforce any right or
remedy under this Indenture and such proceeding has been discontinued or
abandoned for any reason, or has been determined adversely to the Trustee or to
such Holder, then and in every such case, subject to any determination in such
proceeding, the Company, the Trustee and the Holders shall be restored
severally and respectively to their former positions hereunder and thereafter
all rights and remedies of the Trustee and the Holders shall continue as though
no such proceeding had been instituted.

 

SECTION 510.               Rights
and Remedies Cumulative.  Except as
otherwise provided with respect to the replacement or payment of mutilated,
destroyed, lost or stolen Securities in the last paragraph of Section 306, no
right or remedy herein conferred upon or reserved to the Trustee or to the
Holders is intended to be exclusive of any other right or remedy, and every
right and remedy shall, to the extent permitted by law, be cumulative and in
addition to every other right and remedy given hereunder or now or hereafter
existing at law or in equity or otherwise. 
The assertion or employment of any right or remedy hereunder, or
otherwise, shall not prevent the concurrent assertion or employment of any
other appropriate right or remedy.

 

SECTION 511.               Delay
or Omission Not Waiver.  No delay or
omission of the Trustee or of any Holder of any Securities to exercise any
right or remedy accruing upon any Event of Default shall impair any such right
or remedy or constitute a waiver of any such Event of Default or an acquiescence
therein.  Every right and remedy given by
this Article or by law to the Trustee or to the Holders may be exercised from
time to time, and as often as may be deemed expedient, by the Trustee or by the
Holders, as the case may be.

 

SECTION 512.               Control
by Holders.  With respect to the Securities
of any series, the Holders of not less than a majority in principal amount of
the Outstanding Securities of such series shall have the right to direct the
time, method and place of conducting any proceeding for any remedy available to
the Trustee, or exercising any trust or power conferred on the Trustee,
relating to or arising under clause (1), (2) or (11) of Section 501, and,
with respect to all Securities, the Holders of not less than a majority in
principal amount of all Outstanding Securities shall have the right to direct
the time, method and place of conducting any proceeding for any remedy
available to the Trustee, or exercising any trust or power conferred on the
Trustee, not relating to or arising under clause (1), (2) or (11) of
Section 501, provided, however, that in each case

 

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

 

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

 

(3)           the Trustee need not
take any action which might involve it in personal liability or be unjustly
prejudicial to the Holders of Securities of such series not consenting.

 

SECTION 513.               Waiver
of Past Defaults.  Subject to
Section 502, the Holders of not less than a majority (in the case of
clauses (3), (4) or (5) of Section 501) or all (in the case

 

41

 

of clauses (6) and (7) of Section 501) in
principal amount of the Outstanding Securities of any series may on behalf of
the Holders of all the Securities of such series waive any past default described
in Section 501 and its consequences, except a default

 

(1)           in respect of the
payment of the principal of (or premium, if any) or interest on any Security,
or

 

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

 

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

 

SECTION 514.               Undertaking
for Costs.  All parties to this
Indenture agree, and each Holder of any Security by his acceptance thereof
shall be deemed to have agreed, that any court may in its discretion require,
in any suit for the enforcement of any right or remedy under this Indenture, or
in any suit against the Trustee for any action taken or omitted 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 Holder, or
group of Holders, holding in the aggregate more than 10% in principal amount of
the Outstanding Securities to which the suit relates, or to any suit instituted
by any Holder for the enforcement of the payment of the principal of (or
premium, if any), including Redemption Price and Repayment Price, or interest
on any Security on or after the respective Stated Maturities expressed in such Security
(or, in the case of redemption or repayment, on or after the Redemption Date or
Repayment Date, as the case may be).

 

SECTION 515.               Waiver
of Stay or Extension Laws.  The
Company covenants (to the extent that it may lawfully do so) that it will not
at any time insist upon, or plead, or in any manner whatsoever claim or take
the benefit or advantage of, any stay or extension law wherever enacted, now or
at any time hereafter in force, which may affect the covenants or the performance
of this Indenture; and the Company (to the extent that it may lawfully do so)
hereby expressly waives all benefit or advantage of any such law and covenants
that it will not hinder, delay or impede the execution of any power herein
granted to the Trustee, but will suffer and permit the execution of every such
power as though no such law had been enacted.

 

42

 

ARTICLE SIX

 

THE TRUSTEE

 

SECTION 601.               Certain
Duties and Responsibilities.  (a)  Except during the continuance of an Event of
Default,

 

(1)           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

 

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

 

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

 

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

 

(1)           this
Subsection shall not be construed to limit the effect of Subsection (a) of this
Section;

 

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

 

(3)           the
Trustee shall not be liable with respect to any action taken or omitted to be
taken by it in good faith in accordance with the direction of the Holders of a
majority in principal amount of the Outstanding Securities of any series, determined
as provided in Section 512, relating to the time, method and place of conducting
any proceeding for any remedy available to the Trustee, or exercising any trust
or power conferred upon the Trustee, under this Indenture with respect to the
Securities of such series; and

 

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

 

43

 

(d)           Whether
or not herein expressly so provided, every provision of this Indenture relating
to the conduct or affecting the liability of or affording protection to the
Trustee shall be subject to the provisions of this Section.

 

SECTION 602.               Notice
of Defaults.  Within 90 days after
the occurrence of any default or Event of Default hereunder with respect to the
Securities of any series, the Trustee shall transmit in the manner and to the
extent provided in TIA Section 313(c), notice of such default hereunder known
to the Trustee, unless such default shall have been cured or waived; provided,
however, that, except in the case of a default in the payment of the principal
of (or premium, if any), including Redemption Price and Repayment Price, or
interest on any Security of such series, the Trustee shall be protected in
withholding such notice if and so long as a Responsible Officer of the Trustee
in good faith determines that the withholding of such notice is in the interest
of the Holders of Securities of such series. 
For the purpose of this Section, the term “default” means any event
which is, or after notice or lapse of time or both would become, an Event of
Default with respect to Securities of such series.

 

SECTION 603.               Certain
Rights of Trustee.  Subject to the
provisions of TIA Section 315(a) through 315(d):

 

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

 

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

 

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

 

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

 

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

 

44

 

to the Trustee reasonable security or indemnity against the costs,
expenses and liabilities which might be incurred by it in compliance with such
request or direction;

 

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

 

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

 

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

 

The Trustee shall not be required to expend
or risk its own funds or otherwise incur any financial liability in the performance
of any of its duties hereunder, or in the exercise of any of its rights or
powers if it shall have reasonable grounds for believing that repayment of such
funds or adequate indemnity against such risk or liability is not reasonably
assured to it.

 

SECTION 604.               Trustee
Not Responsible for Recitals or Issuance of Securities.  The
recitals contained herein and in the Securities, except for the Trustee’s
certificates of authentication, shall be taken as the statements of the
Company, and the Trustee or any Authenticating Agent assumes no responsibility
for their correctness.  The Trustee makes
no representations as to the validity or sufficiency of this Indenture or of
the Securities, except that the Trustee represents that it is duly authorized
to execute and deliver this Indenture, authenticate the Securities and perform
its obligations hereunder and that the statements made by it in a Statement of
Eligibility and Qualification on Form T-1 supplied to the Company are true and
accurate, subject to the qualifications set forth therein.  The Trustee or any Authenticating Agent shall
not be accountable for the use or application by the Company of Securities or
the proceeds thereof.

 

SECTION 605.               May
Hold Securities.  The Trustee, any
Authenticating Agent, any Paying Agent, any Security Registrar or any other
agent of the Company or of the Trustee, in its individual or any other
capacity, may become the owner or pledgee of Securities and, subject to TIA Sections
310(b) and 311, may otherwise deal with the Company with the same rights it
would have if it were not Trustee, Authenticating Agent, Paying Agent, Security
Registrar or such other agent.

 

SECTION 606.               Money
Held in Trust.  Money held by the
Trustee in trust hereunder need not be segregated from other funds except to
the extent required by law.  The Trustee
shall be under no liability for interest on any money received by it hereunder
except as otherwise agreed with the Company.

 

45

 

SECTION 607.               Compensation
and Reimbursement.  The Company agrees:

 

(1)           to
pay to the Trustee from time to time reasonable compensation for all services
rendered by it hereunder (which compensation shall not be limited by any
provision of law in regard to the compensation of a trustee of an express
trust);

 

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

 

(3)           to
indemnify the Trustee for, and to hold it harmless against, any loss, liability
or expense incurred without negligence or bad faith or willful misconduct on
its part, arising out of or in connection with the acceptance or administration
of the trust or trusts hereunder, including the costs and expenses of defending
itself against any claim or liability in connection with the exercise or
performance of any of its powers or duties hereunder.

 

The obligations of the Company under this
Section to compensate the Trustee, to pay or reimburse the Trustee for expenses,
disbursements and advances and to indemnify and hold harmless the Trustee shall
constitute additional indebtedness hereunder and shall survive the satisfaction
and discharge of this Indenture.  As
security for the performance of such obligations of the Company, the Trustee
shall have a claim prior to the Securities upon all property and funds held or
collected by the Trustee as such, except funds held in trust for the payment of
principal of (and premium, if any), including Redemption Price and Repayment
Price or interest on particular Securities.

 

SECTION 608.               Corporate
Trustee Required; Eligibility; Conflicting Interests.  There shall at all times be a Trustee
hereunder which shall be eligible to act as Trustee under TIA Section 310(a)(1)
and shall have a combined capital and surplus of at least $50,000,000.  If such corporation or national banking
association publishes reports of condition at least annually, pursuant to law
or to the requirements of Federal, State, Territorial or District of Columbia
supervising or examining authority, then for the purposes of this Section, the
combined capital and surplus of such corporation or national banking
association shall be deemed to be its combined capital and surplus as set forth
in its most recent report of condition so published.  If at any time the Trustee shall cease to be
eligible in accordance with the provisions of this Section, it shall resign
immediately in the manner and with the effect hereinafter specified in this
Article.

 

SECTION 609.               Resignation
and Removal; Appointment of Successor. 
(a)  No resignation or removal of
the Trustee and no appointment of a successor Trustee pursuant to this Article
shall become effective until the acceptance of appointment by the successor
Trustee in accordance with the applicable requirements of Section 610.

 

(b)           The
Trustee may resign at any time with respect to the Securities of one or more
series by giving written notice thereof to the Company.  If the instrument of acceptance by

 

46

 

a successor Trustee required by
Section 610 shall not have been delivered to the Trustee within 30 days
after the giving of such notice of resignation, the resigning Trustee may
petition any court of competent jurisdiction for the appointment of a successor
Trustee with respect to the Securities of such series.

 

(c)           The
Trustee may be removed at any time with respect to the Securities of any series
by Act of the Holders of a majority in principal amount of the Outstanding
Securities of such series, delivered to the Trustee and to the Company.

 

(d)           If
at any time:

 

(1)           the
Trustee shall fail to comply with the provisions of TIA Section 310(b) after
written request therefor by the Company or by any Holder who has been a bona
fide Holder of a Security for at least six months, or

 

(2)           the
Trustee shall cease to be eligible under Section 608 and shall fail to resign
after written request therefor by the Company or by any Holder who has been a
bona fide Holder of a Security for at least six months, or

 

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

 

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

 

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

 

47

 

any court of competent
jurisdiction for the appointment of a successor Trustee with respect to the
Securities of such series.

 

(f)            The
Company shall give notice of each resignation and each removal of the Trustee
with respect to the Securities of any series and each appointment of a
successor Trustee with respect to the Securities of any series to the Holders
of Securities of such series in the manner provided for in Section 106.  Each notice shall include the name of the
successor Trustee with respect to the Securities of such series and the address
of its Corporate Trust Office.

 

SECTION 610.               Acceptance
of Appointment by Successor.  (a)  In case of the appointment hereunder of a successor
Trustee with respect to all Securities, every such successor Trustee so
appointed shall execute, acknowledge and deliver to the Company and to the
retiring Trustee an instrument accepting such appointment, and thereupon the
resignation or removal of the retiring Trustee shall become effective and such
successor Trustee, without any further act, deed or conveyance, shall become
vested with all the rights, powers, trusts and duties of the retiring Trustee;
but, on the request of the Company or the successor Trustee, such retiring
Trustee shall, upon payment of its charges, execute and deliver an instrument
transferring to such successor Trustee all the rights, powers and trusts of the
retiring Trustee and shall duly assign, transfer and deliver to such successor
Trustee all property and money held by such retiring Trustee hereunder, subject
nevertheless to its lien, if any, provided for in Section 607.

 

(b)           In
case of the appointment hereunder of a successor Trustee with respect to the
Securities of one or more (but not all) series, the Company, the retiring
Trustee and each successor Trustee with respect to the Securities of one or
more series shall execute and deliver an indenture supplemental hereto wherein
each successor Trustee shall accept such appointment and which (1) shall contain
such provisions as shall be necessary or desirable to transfer and confirm to,
and to vest in, each successor Trustee all the rights, powers, trusts and
duties of the retiring Trustee with respect to the Securities of that or those
series to which the appointment of such successor Trustee relates, (2) if the
retiring Trustee is not retiring with respect to all Securities, shall contain
such provisions as shall be deemed necessary or desirable to confirm that all
the rights, powers, trusts and duties of the retiring Trustee with respect to
the Securities of that or those series as to which the retiring Trustee is not
retiring shall continue to be vested in the retiring Trustee, and (3) shall add
to or change any of the provisions of this Indenture as shall be necessary to
provide for or facilitate the administration of the trusts hereunder by more
than one Trustee, it being understood that nothing herein or in such
supplemental indenture shall constitute such Trustee co-trustees of the same
trust and that each such Trustee shall be trustee of a trust or trusts
hereunder separate and apart from any trust or trusts hereunder administered by
any other such Trustee; and upon the execution and delivery of such
supplemental indenture to resignation or removal of the retiring Trustee shall
become effective to the extent provided therein and each such successor
Trustee, without any further act, deed or conveyance, shall become vested with
all the rights, powers, trusts and duties of the retiring Trustee with respect
to the Securities of that or those series to which the appointment of such
successor Trustee relates; but, on request of the Company or any successor
Trustee, such retiring Trustee shall duly assign, transfer and deliver to such
successor Trustee all property and money held by such retiring Trustee
hereunder with respect to the Securities of that or those series to which the
appointment of such successor Trustee relates, subject nevertheless to the
lien, if any, provided for in

 

48

 

Section 607.  Whenever there is a successor Trustee with
respect to one or more (but less than all) series of securities issued pursuant
to this Indenture, the terms “Indenture” and “Securities” shall have the
meanings specified in the provisos to the respective definitions of those terms
in Section 101 which contemplate such situation.

 

(c)           Upon
request of any such successor Trustee, the Company shall execute any and all
instruments for more fully and certainly vesting in and confirming to such
successor Trustee all rights, powers and trusts referred to in paragraph (a) or
(b) of this Section 610, as the case may be.

 

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

 

SECTION 611.               Merger,
Conversion, Consolidation or Succession to Business.  Any corporation or national banking
association into which the Trustee may be merged or converted or with which it
may be consolidated, or any corporation or national banking association
resulting from any merger, conversion or consolidation to which the Trustee
shall be a party, or any corporation or national banking association succeeding
to all or substantially all the corporate trust business of the Trustee, shall
be the successor of the Trustee hereunder, provided such corporation or
national banking association shall be otherwise qualified and eligible under
this Article, without the execution or filing of any paper or any further act
on the part of any of the parties hereto. 
In case any Securities shall have been authenticated, but not delivered,
by the Trustee then in office, any successor by merger, conversion or consolidation
to such authenticating Trustee may adopt such authentication and deliver the
Securities so authenticated with the same effect as if such successor Trustee
had itself authenticated such Securities; and in case at that time any of the
Securities shall not have been authenticated, any successor Trustee may authenticate
such Securities either in the name of any predecessor hereunder or in the name
of the successor Trustee; and in all such cases such certificates shall have
the full force which it is anywhere in the Securities or in this Indenture
provided that the certificate of the Trustee shall have; provided, however,
that the right to adopt the certificate of authentication of any predecessor
Trustee or to authenticate Securities in the name of any predecessor Trustee
shall apply only to its successor or successors by merger, conversion or
consolidation.

 

SECTION 612.               Appointment
of Authenticating Agent.  At any time
when any of the Securities remain Outstanding, the Trustee may appoint an Authenticating
Agent or Agents with respect to one or more series of Securities which shall be
authorized to act on behalf of the Trustee to authenticate Securities of such
series and the Trustee shall give written notice of such appointment to all
Holders of Securities of the series with respect to which such Authenticating
Agent will serve, in the manner provided for in Section 106.  Securities so authenticated shall be entitled
to the benefits of this Indenture and shall be valid and obligatory for all
purposes as if authenticated by the Trustee hereunder.  Any such appointment shall be evidenced by an
instrument in writing signed by a Responsible Officer of the Trustee, and a
copy of such instrument shall be promptly furnished to the Company.  Wherever reference is made in this Indenture
to the authentication and delivery of Securities by the Trustee or the Trustee’s
certificate of authentication, such reference shall be deemed to include
authentication and delivery on behalf of the Trustee by an Authenticating Agent
and a certificate of authentication executed on behalf of

 

49

 

the Trustee by an
Authenticating Agent.  Each
Authenticating Agent shall be acceptable to the Company and shall at all times
be a corporation or national banking association organized and doing business
under the laws of the United States of America, any State thereof or the
District of Columbia, authorized under such laws to act as Authenticating
Agent, having a combined capital and surplus of not less than $50,000,000 and
subject to supervision or examination by Federal or State authority.  If such corporation or national banking
association publishes reports of condition at least annually, pursuant to law
or to the requirements of said supervising or examining authority, then for the
purposes of this Section, the combined capital and surplus of such corporation
or national banking association shall be deemed to be its combined capital and
surplus as set forth in its most recent report of condition so published.  If at any time an Authenticating Agent shall
cease to be eligible in accordance with the provisions of this Section, it
shall resign immediately in the manner and with the effect specified in this
Section.

 

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

 

An Authenticating Agent may resign at any
time by giving written notice thereof to the Trustee and to the Company.  The Trustee may at any time terminate the
agency of an Authenticating Agent by giving written notice thereof to such
Authenticating Agent and to the Company. 
Upon receiving such a notice of resignation or upon such a termination,
or in case at any time such Authenticating Agent shall cease to be eligible in
accordance with the provisions of this Section, the Trustee may appoint a
successor Authenticating Agent which shall be acceptable to the Company and
shall give written notice of such appointment to all Holders of Securities of
the series with respect to which such Authenticating Agent will serve, in the
manner provided for in Section 106.  Any
successor Authenticating Agent upon acceptance of its appointment hereunder
shall become vested with all the rights, powers and duties of its predecessor
hereunder, with like effect as if originally named as an Authenticating
Agent.  No successor Authenticating Agent
shall be appointed unless eligible under the provisions of this Section.

 

The Trustee agrees to pay to each
Authenticating Agent from time to time reasonable compensation for its services
under this Section, and the Trustee shall be entitled to be reimbursed for such
payments, subject to the provisions of Section 607.

 

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

 

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

 

50

 

WELLS FARGO BANK, N.A.,

as Trustee

 

 

By

as Authenticating Agent

 

 

By

Authorized Officer

 

SECTION 613.               Co-Trustee.  (a)  At
any time, only for the purpose of, and only to the extent required for, meeting
the legal requirements of any applicable jurisdiction, the Trustee shall have
the power to appoint one or more persons to act as co-trustee under this
Indenture, with such powers as may be provided in the instrument of
appointment, and to vest in such person or persons any property, title, right
or power deemed necessary or desirable, subject to the remaining provisions of
this Section.  Before the appointment of
any co-trustee the Trustee shall, if the circumstances so permit, consult the
Company and if any co-trustee so appointed shall be a person to whose
appointment the Company might reasonably object by reason of any conflict of
interest or other disability, a determination made by the Trustee (after
consulting its legal advisor in the appropriate jurisdiction) that in its
opinion there is no such conflict of interest or other disability in relation
to any such co-trustee shall be conclusive and binding upon the Company.

 

Should any written instrument from the
Company be required by any co-trustee so appointed for more fully confirming to
such co-trustee such property, title, right or power, any and all such
instruments shall, on request, be executed, acknowledged and delivered by the
Company.

 

(b)           Each
co-trustee shall, to the extent permitted by applicable law, be appointed
subject to the following terms:

 

(1)           The
rights, powers, duties and obligations conferred or imposed upon any such
co-trustee shall not be greater than those conferred or imposed upon the
Trustee, and such rights and powers shall be exercisable only jointly with the
Trustee, except to the extent that, under any law of any jurisdiction in which
any particular act or acts is to be performed, the Trustee shall be incompetent
or unqualified to perform such act or acts, in which event such rights and
powers shall be exercised by such co-trustee subject to the provisions of
Section 613(b)(4) below.

 

(2)           The
Trustee may at any time, by an instrument in writing executed by it, accept the
resignation of or remove any co-trustee appointed under this Section.

 

(3)           No
co-trustee under this Indenture shall be liable by reason of any act or
omission of any other co-trustee appointed under this Indenture.

 

51

 

(4)           No
power given to such co-trustee shall be separately exercised hereunder by such
co-trustee except with the consent in writing of the Trustee.

 

(c)           The
provisions of Section 607 hereof shall extend to any co-trustee, its officers,
employees, agents, successors and assigns appointed hereunder.

 

(d)           Any
Act of Holders delivered to the Trustee shall be deemed to have been delivered
to each such co-trustee.

 

ARTICLE SEVEN

 

HOLDERS’ LISTS
AND REPORTS BY TRUSTEE AND COMPANY

 

SECTION 701.               Disclosure
of Names and Addresses of Holders. 
Every Holder, by receiving and holding the same, agrees with the Company
and the Trustee that neither the Company nor the Trustee nor any agent of
either of them shall be held accountable by reason of the disclosure of any
such information as to the names and addresses of the Holders in accordance
with TIA Section 312, regardless of the source from which such information
was derived, and that the Trustee shall not be held accountable by reason of
mailing any material pursuant to a request made under TIA Section 312(b).

 

SECTION 702.               Reports
by Trustee.  Within 60 days after
May 15 of each year commencing with the first May 15 after the first
issuance of Securities pursuant to this Indenture, the Trustee shall transmit
to the Holders, in the manner and to the extent provided in TIA Section 313(c),
a brief report dated as of such May 15 if required by TIA Section 313(a).

 

SECTION 703.               Reports
by Company.

 

(a)           If
and for so long as the Company is subject to the reporting requirements of
Section 13 or 15(d) of the Exchange Act and any Securities under the Indenture
are outstanding, the Company shall file with the Commission and provide the Trustee
and holders of Securities under such Indenture with such annual reports and
such information, documents and other reports as are specified in Sections 13
and 15(d) of the Exchange Act and applicable to a U.S. person subject to such
Sections, such information, documents and reports to be so filed and provided
at the times specified for the filing of such information, documents and reports
under such Sections.

 

(b)           At
any time when the Company is not subject to the reporting requirements of
Section 13 or 15(d) of the Exchange Act and any Securities under the Indenture
are outstanding, the Company will provide to the Trustee and the holders of Securities:

 

(i)            within
90 days after the end of the Company’s fiscal year, financial statements and a
Management’s Discussion and Analysis of Financial Condition and Results of
Operations substantially equivalent to that which would be required to be included
in an Annual Report on Form 10-K of the Company were the Company subject to an
obligation to file such a report under the Exchange Act;

 

52

 

(ii)           within
40 days after the end of each of the first three fiscal quarters in each fiscal
year of the Company, financial statements and a Management’s Discussion and
Analysis of Financial Condition and Results of Operations substantially equivalent
to that which would be required to be included in a Quarterly Report on Form
10-Q of the Company were the Company subject to an obligation to file such a
report under the Exchange Act; and

 

(iii)          within
the time periods required by the Commission for issuers subject to the
reporting requirements of Section 13(d) or 15(d) of the Exchange Act, the
information that would be required to be filed with the Commission in Current
Reports in Form 8-K (other than in respect of Items 1.01 (in the case of
management compensation and similar agreements only), 2.02, 3.01, 3.02, 3.03,
5.03, 5.04, 5.05, 7.01 and 8.01 (or any successor items to such items) under
Form 8-K) if the Company were subject to such reporting requirements;

 

provided,
however, that the reports set forth in
clauses (i), (ii) and (ii) above shall not be required to: (a) contain any
certification required by any such form or the Sarbanes-Oxley Act of 2002, (b)
include separate financial statements of any Guarantor or (c) include any
exhibit; provided, further,
that any exhibit that would be required to be filed pursuant to Item 9.01 under
Form 8-K (or any successor item to such item) if the Company were subject to
the reporting requirements of Section 13(d) or 15(d) of the Exchange Act shall
be made available to the Trustee and any holder of Securities upon request.
Additionally, substantially concurrently with the delivery to the Trustee and
the holders of the Securities of the reports specified in (i), (ii) and (iii)
above, the Company shall (A) post copies of such reports on its website and (B)
in the case of clauses (i) and (ii) above, hold a conference call with holders
of Securities covering such matters as are reasonably customary for companies
with publicly traded debt or equity securities.

 

(c)           The
Company also shall comply with the other provisions of Section 314(a) of
the TIA.

 

ARTICLE EIGHT

 

CONSOLIDATION,
MERGER, CONVEYANCE, TRANSFER OR LEASE

 

SECTION 801.               Company
May Consolidate, Etc., Only on Certain Terms.  The Company shall not amalgamate or
consolidate with or merge into any other Person or convey, transfer or lease
its properties and assets substantially as an entirety to any Person, unless:

 

(1)           the
Person formed by such consolidation or amalgamation or into which the Company
is merged or the Person which acquires by conveyance or transfer, or which
leases, the properties and assets of the Company substantially as an entirety
shall be a corporation, partnership or trust organized and existing under the
laws of the United States of America or any State thereof or the District of Columbia
and shall expressly assume, by an indenture supplemental hereto, executed and
delivered to the Trustee, in form satisfactory to the Trustee, the Company’s
obligation for the due and punctual payment of the principal of (and premium,
if any), including Redemption Price and 

 

53

 

Repayment Price, and interest on all the Securities and the performance
of every covenant of this Indenture on the part of the Company to be performed
or observed;

 

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

 

(3)           the
Company has delivered to the Trustee an Officers’ Certificate and an Opinion of
Counsel, each stating that such amalgamation, consolidation, merger,
conveyance, transfer or lease and such supplemental indenture comply with this
Article and that all conditions precedent herein provided for relating to such
transaction have been complied with.

 

This Section shall only apply to a merger,
amalgamation or consolidation in which the Company is not the surviving corporation
and to conveyances, leases and transfers by the Company as transferor or
lessor.

 

SECTION 802.               Successor
Person Substituted.  Upon any
amalgamation or consolidation by the Company with or merger by the Company into
any other Person or any conveyance, transfer or lease of the properties and
assets of the Company substantially as an entirety in accordance with Section
801, the successor Person formed by such amalgamation or consolidation or into
which the Company is merged or to which such conveyance, transfer or lease is
made shall succeed to, and be substituted for, and may exercise every right and
power of, the Company under this Indenture with the same effect as if such
successor corporation had been named as the Company herein, and in the event of
any such conveyance or transfer, the Company (which term shall for this purpose
mean the Person named as the “Company” in the first paragraph of this Indenture
or any successor corporation which shall theretofore become such in the manner
described in Section 801), except in the case of a lease, shall be
discharged of all obligations and covenants under this Indenture and the Securities
and may be dissolved and liquidated.

 

SECTION 803.               Securities
To Be Secured in Certain Events.  If,
as a result of any amalgamation or consolidation of the Company with or merger
of the Company with any other Person, or upon any conveyance, lease or transfer
of the property of the Company as an entirety or substantially as an entirety
to any other Person, any properties or assets of the Company would become
subject to a mortgage, pledge, charge, security interest or other encumbrance securing
Debt, then unless such mortgage, pledge, charge, security interest or other
encumbrance could be created without equally and ratably securing the Securities
under Section 1006, the Company or such successor Person, as the case may
be, prior to or simultaneously with such amalgamation, consolidation, merger,
conveyance, lease or transfer, will, with respect to such properties or assets,
secure the Securities Outstanding hereunder (together with, if the Company
shall so determine, any other Debt of the Company now existing or hereafter
created which is not subordinate to the Securities) equally and ratably with
(or prior to) all such Debt which upon such amalgamation, consolidation,
merger, conveyance, lease or transfer is to become secured as to such
properties or assets, or will cause such Securities to be so secured; provided
that for the purpose of providing such equal and rateable or prior security,
the principal amount of Original Issue Discount Securities shall mean that
amount which would at the time of making such effective provision be due and
payable pursuant to Section 502 and the terms of

 

54

 

such Original Issue Discount Securities
upon a declaration of acceleration of the Maturity thereof, and the extent of
such equal and ratable security shall be adjusted, to the extent permitted by
law, as and when said amount changes over time pursuant to the terms of such
Original Issue Discount Securities.

 

ARTICLE NINE

 

SUPPLEMENTAL
INDENTURES

 

SECTION 901.               Supplemental
Indentures Without Consent of Holders. 
Without the consent of any Holders, the Company and the Guarantors, when
authorized by or pursuant to a Board Resolution, and the Trustee, at any time
and from time to time, may enter into one or more indentures supplemental
hereto, in form satisfactory to the Trustee, for any of the following purposes:

 

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

 

(2)           to
add to the covenants of the Company or a Guarantor 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 being included solely for the benefit of such series) or to surrender any
right or power herein conferred upon the Company; or

 

(3)           to
add any additional Events of Default (and if such Events of Default are to be
for the benefit of less than all series of Securities, stating that such Events
of Default are being included solely for the benefit of such series); or

 

(4)           to
secure the Securities pursuant to the requirements of Section 803, 1006 or 1007
or otherwise; or

 

(5)           to
establish the form or terms of Securities of any series as permitted by
Sections 201 and 301; or

 

(6)           to
evidence and provide for the acceptance of appointment hereunder by a successor
Trustee with respect to the Securities of one or more series and to add to or
change any of the provisions of this Indenture as shall be necessary to provide
for or facilitate the administration of the trusts hereunder by more than one
Trustee, pursuant to the requirements of Section 610(b); or

 

55

 

(7)           to
close this Indenture with respect to the authentication and delivery of
additional series of Securities, to cure any ambiguity, to correct or
supplement any provision herein which may be defective or inconsistent with any
other provision herein, or to make any other provisions with respect to matters
or questions arising under this Indenture; provided, however,
such action shall not adversely affect the interests of the Holders of
Securities of any particular series in any material respect; or

 

(8)           to
comply with any requirements of the Commission in order to effect and maintain
the qualification of the Indenture under the Trust Indenture Act; or

 

(9)           to
supplement any of the provisions of this Indenture to the extent necessary to
permit or facilitate the defeasance and discharge of any series of Securities
pursuant to Sections 401, 1402 and 1403; provided, however, that
such action shall not materially adversely affect the interests of any of the
Holders of Securities, taken as a whole; or

 

(10)         to
reflect the release of a Guarantor from its obligations with respect to its
Guarantee pursuant to Section 1504 or to add a Guarantor pursuant to Section 1011;
or

 

(11)         to
cure any ambiguity, defect, mistake or inconsistency in this Indenture or to conform
this Indenture to the provisions of the “Description of Notes” in the
prospectus supplement pursuant to which such Securities were issued that are intended
to be a verbatim recitation of the provisions of this Indenture; provided such action does not materially adversely affect
the interests of Holders, taken as a whole, in the good faith determination of
the Board of Directors.

 

SECTION 902.               Supplemental
Indentures With Consent of Holders. 
With the consent of the Holders of not less than a majority in principal
amount of all Outstanding Securities affected by such supplemental indenture,
by Act of said Holders delivered to the Company and the Trustee, the Company
and the Guarantors, when authorized by or pursuant to a Board Resolution, and
the Trustee may enter into an indenture or indentures supplemental hereto for
the purpose of adding any provisions to or changing in any manner or
eliminating any of the provisions of this Indenture which affect such
Securities or of modifying in any manner the rights of the Holders of such
Securities under this Indenture; provided, however, that no such
supplemental indenture shall, without the consent of the Holder of each
Outstanding Security affected thereby,

 

(1)           change
the Stated Maturity of the principal of, or any installment of interest on, any
Security, or change the time at which any Security may or shall be redeemable
or repayable or reduce the principal amount thereof or the rate of interest
thereon or any premium, including Redemption Price and Repayment Price, payable
upon the redemption or repayment thereof, or change any obligation of the
Company to pay additional amounts provided for pursuant to Section 301, or
reduce the amount of the principal of an Original Issue Discount Security that
would be due and payable upon a declaration of acceleration of the Maturity
thereof pursuant to Section 502 or the amount thereof provable in bankruptcy
pursuant to Section 504, or adversely affect any right of repayment at the
option of any Holder of any Security, or change any Place of Payment where, or
the currency in which, any Security or any premium or the interest thereon is
payable, or modify Section 508, or

 

56

 

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

 

(3)           modify
any of the provisions of this Section, Section 513 or Section 1008, except to
increase any such percentage or to provide that certain other provisions of
this Indenture cannot be modified or waived without the consent of the Holder
of each Outstanding Security affected thereby, or

 

(4)           release
any Guarantee other than as provided for in this Indenture or modify any
Guarantee in any manner adverse to the Holders in any material respect.

 

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

 

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

 

SECTION 903.               Execution
of Supplemental Indentures.  In
executing, or accepting the additional trusts created by, any supplemental
indenture permitted by this Article or the modifications thereby of the trusts
created by this Indenture, the Trustee shall be entitled to receive, and shall
be fully protected in relying upon, an Opinion of Counsel stating that the
execution of such supplemental indenture is authorized or permitted by this
Indenture.  The Trustee may, but shall
not be obligated to, enter into any such supplemental indenture which affects
the Trustee’s own rights, duties or immunities under this Indenture or
otherwise.

 

SECTION 904.               Effect
of Supplemental Indentures.  Upon the
execution of any supplemental indenture under this Article, this Indenture
shall be modified in accordance therewith, and such supplemental indenture
shall form a part of this Indenture for all purposes; and every Holder
theretofore or thereafter authenticated and delivered hereunder shall be bound
thereby.

 

SECTION 905.               Conformity
with Trust Indenture Act.  Every
supplemental indenture executed pursuant to this Article shall conform to the
requirements of the Trust Indenture Act as then in effect.

 

SECTION 906.               Reference
in Securities to Supplemental Indentures. 
Securities of any series authenticated and delivered after the execution
of any supplemental indenture pursuant to this Article may, and shall if
required by the Trustee, bear a notation in form approved by the Trustee as to
any matter provided for in such supplemental indenture.  If the Company shall so determine, new Securities
of any series so modified as to conform, in the opinion of the

 

57

 

Trustee and the Company, to any
such supplemental indenture may be prepared and executed by the Company and
authenticated and delivered by the Trustee in exchange for Outstanding Securities
of such series.

 

SECTION 907.               Notice
of Supplemental Indentures.  Promptly
after the execution by the Company and the Trustee of any supplemental
indenture pursuant to the provisions of Section 902, the Company shall give
notice thereof to the Holders of each Outstanding Security so affected,
pursuant to Section 106, setting forth in general terms the substance of such
supplemental indenture.

 

ARTICLE TEN

 

COVENANTS

 

SECTION 1001.             Payment
of Principal, Premium, if any, and Interest.  The Company covenants and agrees for the
benefit of each series of Securities that it will duly and punctually pay the
principal of (and premium, if any), including Redemption Price and Repayment
Price, and interest on the Securities of that series in accordance with the
terms of the Securities and this Indenture.

 

SECTION 1002.             Maintenance
of Office or Agency.  The Company
will maintain in each Place of Payment for any series of Securities an office
or agency where Securities of that series may be presented or surrendered for
payment, where Securities of that series may be surrendered for registration of
transfer or exchange and where notices and demands to or upon the Company in
respect of the Securities of that series and this Indenture may be served.

 

The Company may also from time to time
designate one or more other offices or agencies where the Securities of one or
more series may be presented or surrendered for any or all such purposes and
may from time to time rescind such designations; provided, however,
that no such designation or rescission shall in any manner relieve the Company
of its obligation to maintain an office or agency in accordance with the requirements
set forth above for Securities of any series for such purposes.  The Company will give prompt written notice
to the Trustee of any such designation or rescission and of any change in the
location of any such other office or agency. 
Unless otherwise specified with respect to any Securities as contemplated
by Section 301 with respect to a series of Securities, the Company hereby
designates as a Place of Payment for each series of Securities the Corporate
Trust Office, and initially appoints the Trustee at the Corporate Trust Office
as Paying Agent in such Place of Payment and as its agent to receive all
presentations, surrenders, notices and demands.

 

SECTION 1003.             Money
for Securities Payments to Be Held in Trust.  If the Company shall at any time act as its
own Paying Agent with respect to any series of Securities, it

 

58

 

will, on or before each due
date of the principal of (and premium, if any), including Redemption Price and
Repayment Price, or interest on any of the Securities of that series, segregate
and hold in trust for the benefit of the Persons entitled thereto a sum in the currency
in which the Securities of such series are payable (except as otherwise
specified pursuant to Section 301 for the Securities of such series) sufficient
to pay the principal (and premium, if any) or interest so becoming due until
such sums shall be paid to such Persons or otherwise disposed of as herein
provided and will promptly notify the Trustee of its action or failure so to
act.

 

Whenever the Company shall have one or more
Paying Agents for any series of Securities, it will, prior to or on each due
date of the principal of (and premium, if any) or interest on any Securities of
that series, deposit with a Paying Agent a sum (in the currency described in
the preceding paragraph) 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
its action or failure so to act.

 

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

 

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

 

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

 

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

 

The Company may at any time, for the purpose
of obtaining the satisfaction and discharge of this Indenture or for any other
purpose, pay, or by Company Order direct any Paying Agent to pay, to the
Trustee all sums held in trust by the Company or such Paying Agent, such sums
to be held by the Trustee upon the same trusts as those upon which sums were
held by the Company or such Paying Agent; and, upon such payment by any Paying
Agent to the Trustee, such Paying Agent shall be released from all further
liability with respect to such sums.

 

Except as provided in the Securities of any
series, any money deposited with the Trustee or any Paying Agent, or then held
by the Company, in trust for the payment of the principal of (and premium, if
any) or interest on any Security of any series and remaining unclaimed for two
years after such principal (and premium, if any) or interest has become due and
payable shall be paid to the Company on Company Request, or (if then held by
the Company) shall be

 

59

 

discharged
from such trust; and the Holder of such Security shall thereafter, as an
unsecured general creditor, look only to the Company for payment thereof, and
all liability of the Trustee or such Paying Agent with respect to such trust
money, and all liability of the Company as trustee thereof, shall thereupon
cease; provided, however, that the Trustee or such Paying Agent,
before being required to make any such repayment, may at the expense of the
Company cause to be published once, in an Authorized Newspaper, notice that
such money remains unclaimed and that, after a date specified therein, which
shall not be less than 30 days from the date of such publication, any
unclaimed balance of such money then remaining will be repaid to the Company.

 

SECTION 1004.             Statement
as to Compliance.  The Company will
deliver to the Trustee, within 120 days after the end of each fiscal year,
a brief certificate from the principal executive officer, principal financial
officer or principal accounting officer as to his or her knowledge of the
Company’s compliance with all conditions and covenants under this
Indenture.  For purposes of this Section
1004, such compliance shall be determined without regard to any period of grace
or requirement of notice under this Indenture.

 

SECTION 1005.             Corporate
Existence.  Subject to Article Eight,
the Company will do or cause to be done all things necessary to preserve and
keep in full force and effect its corporate existence and its rights (charter
and statutory) and franchises; provided, however, that the
Company shall not be required to preserve any such right or franchise if the
Company shall determine that the preservation thereof is no longer desirable in
the conduct of the business of the Company and its Subsidiaries as a whole and
that the loss thereof is not disadvantageous in any material respect to the Holders.

 

SECTION 1006.             Negative
Pledge.

 

(a)           For
so long as any of the Securities are outstanding, the Company will not, and
will not permit any Subsidiary to, create any Security Interest on any of its
property or assets (including Capital Stock), whether owned on the date hereof
or hereafter acquired, to secure any Debt unless it shall secure equally and
ratably with such Debt all Securities then Outstanding for so long as such obligation
is so secured; provided that this covenant shall not hinder or prevent
the sale of any property or assets of the Company (except in the case of a sale
in connection with a transaction prohibited by Section 1007) or hinder or
prevent:

 

(i)            Security
Interests existing on the date of initial issuance of the Securities;

 

(ii)           Security
Interests on any property, Capital Stock, or other assets existing at the time
of acquisition thereof by the Company or any Subsidiary;

 

(iii)          Security
Interests on property, Capital Stock, or other assets of a corporation or other
entity existing at the time such corporation or other entity is merged into or
consolidated with the Company or any Subsidiary or at the time of a sale, lease
or other disposition of the properties of a corporation or other entity as an
entirety or substantially as an entirety to the Company or any Subsidiary;

 

60

 

(iv)          Security
Interests on property, Capital Stock or other assets (“Secured Projects”)
acquired, constructed or improved by the Company or any Subsidiary after the
initial issuance of the Securities which are created or assumed contemporaneously
with, or within 270 days after, such acquisition (or, in the case of property
or other assets constructed or improved, within 270 days after the completion
or commencement of commercial operation of such property or other assets,
whichever is later) to secure or provide for the payment of any part of the
purchase price of such property, Capital Stock, or other assets or cost of such
construction or improvement; provided that if a commitment to so finance
such a payment is obtained prior to or within such 270 day period and the
related Security Interest is created within 90 days after the expiration of the
270 day period, the applicable Security Interest shall be deemed to be included
in this clause (iv);

 

(v)           Security
Interests securing Debt issued pursuant to a receivables facility or similar
credit arrangement which provides for Debt issued by the Company or any
Subsidiary thereunder and interest thereon and related obligations to be
secured by a pledge of receivables of the Company or any Subsidiary in
accordance with an indenture or other agreement;

 

(vi)          the
granting of any security, whether by way of letter of credit, surety bond or
otherwise, which is posted or granted pursuant to a court order or agreement
with a third Person in the context of a dispute by the Company or any Subsidiary
of the claims by a third Person purportedly arising in the ordinary course of
business of, or incident to current construction by, the Company or any
Subsidiary of the Company;

 

(vii)         the
deposit of cash, letters of credit, surety bonds, labor and material bonds, or
any other security in connection with contracts (other than for the payment of
Debt) or tenders in the ordinary course of business or to secure margin
accounts in the ordinary course of business, workmen’s compensation, surety or
appeal bonds, costs of litigation required by law, public and statutory obligations,
liens or claims whether arising at common law, equity or pursuant to statute
whether incident to current construction or otherwise, including but not
limited to mechanics’, workmen’s, carriers’ and other similar liens;

 

(viii)        Security
Interests securing Debt or other obligations of a Subsidiary owing to the
Company or a wholly owned Subsidiary;

 

(ix)           Security
Interests on or other conveyances of property or other assets owned by the
Company or any Subsidiary in favor of the United States of America or any
State, territory or possession thereof (or the District of Columbia), the
Government of Canada or any Province or Territory thereof or any member country
in the European Union, or any department, agency, instrumentality or political
subdivision of the United States of America or any State, territory or
possession thereof (or the District of Columbia), the Government of Canada or
any Province or Territory thereof or any member country in the European Union,
to secure partial, progress, advance or other payments pursuant to any contract
or statute or to secure any Debt incurred for the purpose of financing all or
any part of the purchase price or the cost of construction or improvement of
the property subject to such Security Interests; or

 

61

 

(x)            any
extension, renewal or replacement (or successive extensions, renewals or replacements),
in whole or in part, of any Security Interest referred to in the foregoing
clauses (i) to (ix), inclusive, without increase of the principal of the Debt
secured thereby (plus the aggregate amount of premiums, costs and expenses paid
or incurred in connection with such extension, renewal or replacement); provided,
however, that such extension, renewal or replacement shall be limited to
all or a part of the property or other assets which secured the Security
Interest so extended, renewed or replaced (plus improvements on such property
or other assets); and provided, further, that any Security
Interest permitted by any of the foregoing clauses (i) to (ix), inclusive, of
this Section 1006 shall not extend to or cover any property of the Company or
any Subsidiary other than the property specified in such clauses and improvements
thereto.

 

(b)           Notwithstanding
the foregoing provisions or the provisions of Section 1007, the Company or
any Subsidiary may issue, incur, create, assume or guarantee Debt secured by
Security Interests which would otherwise be subject to the foregoing
restrictions and enter into any Sale/Leaseback Transaction that would otherwise
be prohibited by Section 1007 in an aggregate amount which, together (but
without duplication) with (x) all other outstanding Debt of the Company and
each Subsidiary or any of them which (if originally issued, incurred, created,
assumed or guaranteed at such time) would otherwise be subject to the foregoing
restrictions after giving effect to Sections 1006(a)(i) through 1006(a)(x)
above, (y) the aggregate Attributable Debt of all such Sale/Leaseback
Transactions of the Company and each Subsidiary or any of them at any one time
outstanding (other than any Attributable Debt relating to Sale/Leaseback
Transactions pursuant to, and in compliance with, Section 1007(b)) and (z)
following a Fall-Away Event, the aggregate Debt of Subsidiaries of the Company
pursuant to Section 1010(b), does not at the time exceed 15% of Consolidated
Net Tangible Assets of the Company).

 

SECTION 1007.             Limitation
on Sale/Leaseback Transactions.

 

(a)           The Company shall not, and shall not
permit any Subsidiary to, enter into any Sale/Leaseback Transaction with respect
to any property unless (i) the Company or such Subsidiary would be
entitled to create Security Interests on such property securing the Attributable
Debt relating to such Sale/Leaseback Transaction without equally and ratably
securing the Securities pursuant to the covenant described under Section 1006
or (ii) the net cash proceeds received by the Company or any Subsidiary in
connection with such Sale/Leaseback Transaction are at least equal to the fair market
value (which fair market value, in the case of any such Sale/Leaseback transaction
with net cash proceeds in excess of $10 million, shall be determined by the
board of directors (or any duly authorized committee thereof) of the Company
or, as the case may be, such Subsidiary) of such property, and the Company or
such Subsidiary shall apply or cause to be applied, in the case of a sale or
transfer for cash, an amount equal to the net proceeds thereof and, in the case
of a sale or transfer otherwise than for cash, an amount equal to the fair
market value of the property so leased, to the retirement, within 180 days
after the effective date of such Sale/Leaseback Transaction, of the Securities
subject to the provisions of Article Eleven or Debt of the Company ranking on a
parity with the Securities and owing to a Person other than the Company or any
Affiliate of the Company or to the construction or improvement of real property
or personal property used in the ordinary course of business.

 

(b)           The restrictions in
Section 1007(a) shall not apply to transactions between the Company and a
joint venture, partnership or other association or affiliation in which the
Company has at least a 50% interest, directly or indirectly entered into for
operational or strategic reasons and not for financing reasons; provided,
however, that the aggregate Attributable

 

62

 

Debt of all Sale/Leaseback
Transactions of the Company and each Subsidiary or any of them incurred pursuant
to this Section 1007(b) does not at any one time in the aggregate exceed 15%
of Consolidated Net Tangible Assets of the Company.

 

SECTION 1008.             Waiver
of Certain Covenants.  The Company
may omit in any particular instance to comply with any term, provision or condition
set forth in Section 803, 1006 or 1007 if the Holders of at least a majority in
principal amount of all Outstanding Securities affected by such term, provision
or covenant by Act of such Holders, waive such compliance in such instance with
such term, provision or condition, but no such waiver shall extend to or affect
such term, provision or condition except to the extent so expressly waived,
and, until such waiver shall become effective, the obligations of the Company
and the duties of the Trustee in respect of any such term, provision or
condition shall remain in full force and effect.

 

SECTION 1009.             Change
of Control Offer.

 

Upon the occurrence of a Change of Control,
each Holder will have the right to require that the Company purchase all or a
portion of such Holder’s Securities (a “Change of Control Offer”) at a
Purchase Price equal to 101% of the principal amount thereof plus accrued
interest to, but not including, the date of purchase.

 

In the event that the Company shall be
required to commence a Change of Control Offer, it shall follow the procedures
specified below.

 

Within 30 days following the date upon which
the Change of Control occurred, the Company must send a notice to each Holder,
with a copy to the Trustee.  The notice
shall contain all instructions and materials necessary to enable such Holders
to tender Securities pursuant to the Change of Control Offer.  The Change of Control Offer shall be made to
all Holders.  The notice, which shall
govern the terms of the Change of Control Offer, shall state:

 

(a)           the
transaction or transactions that constitute the Change of Control, providing
information, to the extent publicly available, regarding the Person or Persons
acquiring control, and stating that the Change of Control Offer is being made
pursuant to this Section 1009 and that, to the extent lawful, all Securities
tendered will be accepted for payment;

 

(b)           the
Purchase Price and the Purchase Date, which must be no earlier than 30 days nor
later than 60 days from the date such notice is mailed, other than as may be
required by law (the “Change of Control Payment Date”);

 

(c)           that
any Security not properly tendered or otherwise not accepted for repurchase
will continue to accrue interest;

 

(d)           that,
unless the Company defaults in the payment of the amount due on the Change of
Control Payment Date, all Securities or portions thereof accepted for
repurchase pursuant to the Change of Control Offer shall cease to accrue
interest after the Change of Control Payment Date;

 

63

 

(e)           that
Holders electing to have a Security purchased pursuant to a Change of Control
Offer will be required to surrender the Security, with the form entitled “Option
of Holder to Elect Purchase” on the reverse of the Security completed, or
transfer by book-entry transfer, to the Company, a Depositary, if appointed by
the Company, or a Paying Agent at the address specified in the notice prior to
the close of business on the third Business Day prior to the Change of Control
Payment Date;

 

(f)            that
Holders will be entitled to withdraw their election if the Company, the
Depositary or the Paying Agent, as the case may be, receives, not later than
the Change of Control Offer Payment Date, a telegram, facsimile transmission or
letter setting forth the name of the Holder, the principal amount of Securities
delivered for repurchase, and a statement that such Holder is withdrawing his
election to have the Securities redeemed in whole or in part; and

 

(g)           that
Holders whose Securities are being repurchased only in part will be issued new Securities
in principal amount equal to the unpurchased portion of the Securities surrendered;
provided, however, that each Security Purchased and each new Security issued
shall be in a principal amount equal to $1,000 or an integral multiple thereof.

 

On or before the Change of Control Payment
Date, the Company shall to the extent lawful, (i) accept for payment all Securities
or portions thereof properly tendered pursuant to the Change of Control Offer,
(ii) deposit with the Paying Agent an amount equal to the Purchase Price,
together with accrued and unpaid interest thereon to the Change of Control
Payment Date in respect of all Securities or portions thereof so tendered and
accepted for repurchase and (iii) deliver or cause to be delivered to the
Trustee the Securities so accepted together with an Officers’ Certificate
stating the aggregate principal amount of Securities or portions thereof being
repurchased by the Company.  The Paying
Agent shall promptly (but in any case not later than five days after the Change
of Control Payment Date) mail to each Holder of Securities so repurchased the
amount due in connection with such Securities, and the Company shall promptly
issue a new Security, and the Trustee, upon written request from the Company in
the form of an Officers’ Certificate shall authenticate and mail or deliver (or
cause to transfer by book entry) to each relevant Holder a new Security, in a
principal amount equal to any unpurchased portion of the Securities surrendered
to the Holder thereof; provided that each such new Security shall be in a
principal amount of $l,000 or and integral multiple thereof.  The Company shall publicly announce the
results of the Change of Control Offer on or as soon as practicable after the
Change of Control Payment Date.

 

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

 

If the Change of Control Payment Date is on
or after an interest record date and on or before the related interest payment
date, any accrued and unpaid interest to the Change of Control Payment Date
shall be paid to the Person in whose name a Security is registered at the close
of business on such record date, and no additional interest shall be payable to
Holders pursuant to the Change of Control Offer.

 

64

 

To the extent that the provisions of any
securities laws or regulations conflict with this Section 1009, the Company
shall comply with the applicable securities laws and regulations and shall not
be deemed to have breached its obligations under this Section 1009 by virtue
thereof.

 

SECTION 1010.             Limitation
on Debt of Subsidiaries.

 

(a)           At
all times following the occurrence of a Fall Away Event, the Company shall not
permit any Subsidiary of the Company to issue, incur, create, assume, or
guarantee any Debt except for:

 

(1)           Debt
secured by a Security Interest permitted by Section 1006;

 

(2)           Debt
of a corporation or other entity existing at the time such corporation or other
entity is merged into or consolidated with any Subsidiary or at the time of a
sale, lease or other disposition of the properties of such corporation or other
entity as an entirety or substantially as an entirety to any Subsidiary of the
Company;

 

(3)           Debt
of a Subsidiary of the Company with respect to which the proceeds are applied
by such Subsidiary to acquire, construct or improve property, the majority of
the Capital Stock of a Person, or other assets incurred after the initial
issuance of the Securities and contemporaneously with, or within 270 days
after, such acquisition (or, in the case of property or other assets
constructed or improved, within 270 days after the completion or commencement
of commercial operation of such property or other assets, whichever is later);

 

(4)           Debt
of a Subsidiary of the Company owing to the Company or a wholly-owned
Subsidiary of the Company; provided that if any person other than the Company
or a wholly-owned Subsidiary of the Company owns or holds any such Debt, such
Debt shall be deemed to be incurred as of the date such Debt becomes owned or
held by such person and such incurrence shall not be permitted pursuant to this
clause (4);

 

(5)           Debt
of a non-Domestic Subsidiary with respect to which neither the Company nor any
of its Domestic Subsidiaries has provided any guarantee or other credit support;
and

 

(6)           the
extension, renewal or replacement (or successive extensions, renewals or replacements)
by a Subsidiary of the Company, in whole or in part, of any Debt of such
Subsidiary referred to in the foregoing clauses (1) to (5), inclusive, or the
next sentence without increase of the principal of such Debt or change of the
obligor or obligors with respect to such Debt (plus the aggregate amount of
premiums, costs and expenses paid or incurred in connection with such
extension, renewal or replacement).

 

(b)           Notwithstanding
the provisions of Section 1010(a), any Subsidiary of the Company may issue, incur,
create,assume, or guarantee Debt that would otherwise be subject to these
restrictions in an aggregate principal amount that, together with (A) all other
Debt of the Company’s Subsidiaries that would otherwise be subject to the
restrictions in Section 1010(a) after giving effect to the provisions of
Section 1010(a)(i) through 1010(a)(vi) above and (B) the

 

65

 

aggregate Debt and Attributable
Debt of the Company and its Subsidiaries outstanding pursuant to Section
1006(b) (other than any Attributable Debt relating to Sale/Leaseback
Transactions pursuant to, and in compliance with, Section 1007(b)), does
not at any one time exceed 15% of Consolidated Net Tangible Assets of the Company.

 

SECTION 1011.             Additional
Subsidiary Guarantees.

 

(a)           At
all times prior to the occurrence of a Fall-Away Event, if the Company or any
of its Subsidiaries transfers or causes to be transferred any property, in one
transaction or a series of related transactions, in excess of $500,000 to any
Domestic Subsidiary that is not a Guarantor, or if the Company or any of its
Subsidiaries shall organize, acquire or otherwise invest in a Domestic
Subsidiary having total assets with a fair market value in excess of $500,000,
then such transferee or acquired or other Domestic Subsidiary shall:

 

(i)            execute
and deliver, within 30 Business Days, to the Trustee a supplemental indenture
in form reasonably satisfactory to the Trustee pursuant to which such Domestic
Subsidiary shall unconditionally guarantee all of the Company’s obligations
under the notes and the Indenture on the terms set forth in the Indenture; and

 

(ii)           deliver
to the Trustee an opinion of counsel that such supplemental indenture has been
duly authorized, executed and delivered by such Domestic Subsidiary and
constitutes a legal, valid, binding and enforceable obligation of such Domestic
Subsidiary.

 

(b)           Thereafter,
such Subsidiary shall be a Guarantor for all purposes of the Indenture.

 

(c)           Notwithstanding
any other provision of this Section 1011, none of the Foreign Holding
Companies, Crompton & Knowles Receivables Corporation and Assured Insurance
Company will be a Guarantor unless such entity (i) engages in any business
other than acting as a holding company for non-Domestic Subsidiaries of the
Company (in the case of a Foreign Holding Company), owns any material assets or
has any material liabilities other than in connection with its activities as a
special purpose vehicle to facilitate a receivables securitization program of
the Company or its Subsidiaries (in the case of Crompton & Knowles Receivables
Corporation) or ceases to transact substantially all of its business as an insurance
entity (in the case of Assured Insurance Company) or (ii) guarantees or
otherwise becomes obligated with respect to or provides collateral for any
other Debt of the Company or a Domestic Subsidiary of the Company.

 

ARTICLE ELEVEN

 

REDEMPTION OF
SECURITIES

 

SECTION 1101.             Applicability
of Article.  Securities of any series
which are redeemable before their Stated Maturity shall be redeemable in
accordance with the terms of such Securities and (except as otherwise specified
as contemplated by Section 301 for Securities of any series) in accordance
with this Article Eleven.

 

66

 

SECTION 1102.             Election
to Redeem; Notice to Trustee.  The
election of the Company to redeem any Securities shall be evidenced by or
pursuant to a Board Resolution.  In case
of any redemption at the election of the Company of less than all the
Securities of any series, the Company shall, at least 60 days prior to the
Redemption Date fixed by the Company (unless a shorter notice shall be satisfactory
to the Trustee), notify the Trustee of such Redemption Date, the Redemption
Price, and of the principal amount of Securities of such series to be redeemed
and shall deliver to the Trustee such documentation and records as shall enable
the Trustee to select the Securities to be redeemed pursuant to Section
1103.  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 such restriction.

 

SECTION 1103.             Selection
by Trustee of Securities to Be Redeemed. 
If fewer than all the Securities of any series are to be redeemed, the
particular Securities to be redeemed shall be selected not more than 60 days
prior to the Redemption Date by the Trustee, from the Outstanding Securities of
such series not previously called for redemption, on a pro rata
basis, by lot or by such method as the Trustee shall deem fair and appropriate
and which may provide for the selection for redemption of portions of the
principal of Securities of such series; provided, however, that
no such partial redemption shall reduce the portion of the principal amount of
a Security not redeemed to less than the minimum authorized denomination for
Securities of such series established pursuant to Section 301.

 

The Trustee shall promptly notify the Company
in writing of the Securities selected for redemption and, in the case of any
Securities selected for partial redemption, the principal amount thereof to be
redeemed.

 

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

 

SECTION 1104.             Notice
of Redemption.  Except as otherwise
specified as contemplated by Section 301, notice of redemption shall be given
in the manner provided in Section 106 not less than 30 nor more than 60 days
prior to the Redemption Date, to each Holder of Securities to be redeemed.

 

All notices of redemption shall state:

 

(1)           the
Redemption Date,

 

(2)           the
Redemption Price,

 

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

 

 

67

 

(4)           that
on the Redemption Date the Redemption Price (together with accrued interest, if
any, to the Redemption Date payable as provided in Section 1106) will become
due and payable upon each such Security, or the portion thereof, to be redeemed
and, if applicable, that interest thereon will cease to accrue on and after
said date,

 

(5)           the
place or places where such Securities maturing after the Redemption Date, are
to be surrendered for payment of the Redemption Price, and

 

(6)           the
paragraph of the Securities and or Section of this Indenture pursuant to which
the Securities called for redemption are being redeemed.

 

Notice of redemption of Securities to be
redeemed at the election of the Company shall be given by the Company or, at
the Company’s request, by the Trustee in the name and at the expense of the Company;
provided, however, that the Company has delivered to the Trustee at least
45 days prior to the Redemption Date (or such shorter period as the
Trustee may agree), an Officers' Certificate requesting that the Trustee give
such notice and setting forth the information to be stated in such notice as
provided in the preceding paragraph.

 

SECTION 1105.             Deposit
of Redemption Price.  Prior to any
Redemption Date, the Company shall deposit with the Trustee or with a Paying
Agent (or, if the Company is acting as its own Paying Agent, segregate and hold
in trust as provided in Section 1003) an amount of money in the currency in
which the Securities of such series are payable (except as otherwise specified
pursuant to Section 301 for the Securities of such series) sufficient to pay
the Redemption Price of, and accrued interest on, all the Securities which are
to be redeemed on that date.

 

SECTION 1106.             Securities
Payable on Redemption Date.  Notice
of redemption having been given as aforesaid, the Securities so to be redeemed
shall, on the Redemption Date, become due and payable at the Redemption Price
therein specified in the currency in which the Securities of such series are
payable (except as otherwise specified pursuant to Section 301 for the Securities
of such Series) (together with accrued interest, if any, to the Redemption
Date), and from and after such date (unless the Company shall default in the
payment of the Redemption Price and accrued interest) such Securities shall, if
the same were interest bearing, cease to bear interest.  Upon surrender of any such Security for
redemption in accordance with said notice, such Security shall be paid by the
Company at the Redemption Price, together with accrued interest, if any, to the
Redemption Date; provided, however, that installments of interest
on Securities whose Stated Maturity is on or prior to the Redemption Date shall
be payable (but without interest thereon, unless the Company shall default in
the payment thereof) to the Holders of such Securities, or one or more Predecessor
Securities, registered as such at the close of business on the relevant Record
Dates according to their terms and the provisions of Section 307.

 

If any Security called for redemption shall
not be so paid upon surrender thereof for redemption, the principal (and premium,
if any) shall, until paid, bear interest from the Redemption Date at the rate
of interest or Yield to Maturity (in the case of Original Issue Discount
Securities) set forth in the Security.

 

SECTION 1107.             Securities
Redeemed in Part.  Any Security which
is to be redeemed only in part (pursuant to the provisions of this Article or
of Article Twelve) shall be surrendered at a Place of Payment therefor (with,
if the Company or the Trustee so requires, due endorsement by, or a written
instrument of transfer in form satisfactory to the Company and the

 

68

 

Trustee duly executed by, the
Holder thereof or such Holder’s attorney duly authorized in writing), and the
Company shall execute, and the Trustee shall authenticate and deliver to the
Holder of such Security without service charge, a new Security or Securities of
the same series, of any authorized denomination as requested by such Holder, in
aggregate principal amount equal to and in exchange for the unredeemed portion
of the principal of the Security so surrendered.

 

ARTICLE TWELVE

 

[RESERVED]

 

 

ARTICLE THIRTEEN

 

REPAYMENT AT OPTION OF HOLDERS

 

SECTION 1301.             Applicability
of Article.  Repayment of Securities
of any series before their Stated Maturity at the option of Holders thereof
shall be made in accordance with the terms of such Securities and (except as
otherwise specified as contemplated by Section 301 for Securities of any
series) in accordance with this Article. This Article shall not be applicable
to the Initial Securities.

 

69

 

SECTION 1302.             Repayment
of Securities.  Securities of any
series subject to repayment in whole or in part at the option of the Holders
thereof will, unless otherwise provided in the terms of such Securities, be
repaid at a price equal to the principal amount thereof, together with
interest, if any, thereon accrued to the Repayment Date specified in or
pursuant to the terms of such Securities. 
The Company covenants that on or before the Repayment Date it will
deposit with the Trustee or with a Paying Agent (or, if the Company is acting
as its own Paying Agent, segregate and hold in trust as provided in Section
1003) an amount of money in the currency in which the Securities of such series
are payable (except as otherwise specified pursuant to Section 301 for the
Securities of such series) sufficient to pay the principal (or, if so provided
by the terms of the Securities of any series, a percentage of the principal)
of, and (except if the Repayment Date shall be an Interest Payment Date)
accrued interest on, all the Securities or portions thereof, as the case may
be, to be repaid on such date.

 

SECTION 1303.             Exercise
of Option.  Securities of any series
subject to repayment at the option of the Holders thereof will contain an “Option
to Elect Repayment” form on the reverse of such Securities.  To be repaid at the option of the Holder, any
Security so providing for such repayment, with the “Option to Elect Repayment”
form on the reverse of such Security duly completed by the Holder (or by the
Holder’s attorney duly authorized in writing), must be received by the Company
at the Place of Payment therefor specified in the terms of such Security (or at
such other place or places or which the Company shall from time to time notify
the Holders of such Securities) not earlier than 45 days nor later than 30 days
prior to the Repayment Date.  If less
than the entire principal amount of such Security is to be repaid in accordance
with the terms of such Security, the principal amount of such Security to be
repaid, in increments of the minimum denomination for Securities of such
series, and the denomination or denominations of the Security or Securities to
be issued to the Holder for the portion of the principal amount of such
Security surrendered that is not to be repaid, must be specified.  The principal amount of any Security
providing for repayment at the option of the Holder thereof may not be repaid
in part if, following such repayment, the unpaid principal amount of such
Security would be less than the minimum authorized denomination of Securities
of the series of which such Security to be repaid is a part.  Except as otherwise may be provided by the
terms of any Security providing for repayment at the option of the Holder
thereof, exercise of the repayment option by the Holder shall be irrevocable
unless waived by the Company.

 

SECTION 1304.             When
Securities Presented for Repayment Become Due and Payable.  If Securities of any series providing for
repayment at the option of the Holders thereof shall have been surrendered as
provided in this Article and as provided by or pursuant to the terms of such
Securities, such Securities or the portions thereof, as the case may be, to be
repaid shall become due and payable and shall be paid by the Company on the
Repayment Date therein specified, and on and after such Repayment Date (unless
the Company shall default in the payment of such Securities on such Repayment
Date) such Securities shall, if the same were interest-bearing, cease to bear
interest, except to the extent provided below, shall be void.  Upon surrender of any such Security for
repayment in accordance with such provisions, the principal amount of such
Security so to be repaid shall be paid by the Company, together with accrued
interest, if any, to the Repayment Date; provided, however, that
installments of interest, if any, whose Stated Maturity is on or prior to the
Repayment Date shall be payable (but without interest

 

70

 

thereon, unless the Company
shall default in the payment thereof) to the Holders of such Securities, or one
or more Predecessor Securities, registered as such at the close of business on
the relevant Record Dates according to their terms and the provisions of
Section 307.

 

If the principal amount of any Security
surrendered for repayment shall not be so repaid upon surrender thereof, such
principal amount (together with interest, if any, thereon accrued to such
Repayment Date) shall, until paid, bear interest from the Repayment Date at the
rate of interest or Yield to Maturity (in the case of Original Issue Discount
Securities) set forth in such Security.

 

SECTION 1305.             Securities
Repaid in Part.  Upon surrender of
any Security which is to be repaid in part only, the Company shall execute and
the Trustee shall authenticate and deliver to the Holder of such Security,
without service charge and at the expense of the Company, a new Security or
Securities of the same series, of any authorized denomination specified by the
Holder, in an aggregate principal amount equal to and in exchange for the
portion of the principal of such Security so surrendered which is not to be
repaid.

 

ARTICLE FOURTEEN

 

DEFEASANCE AND COVENANT DEFEASANCE

 

SECTION 1401.             Company’s
Option to Effect Defeasance or Covenant Defeasance.  Except as otherwise specified as contemplated
by Section 301 for Securities of any series, the provisions of this Article
shall be applicable to the Securities, and the Company may at its option by
Board Resolution, at any time, with respect to the Securities of or within a
series, elect to have either Section 1402 (if applicable) or Section 1403 (if
applicable) be applied to the Outstanding Securities of or within a series upon
compliance with the conditions set forth below in this Article.

 

SECTION 1402.             Defeasance
and Discharge.  Upon the Company’s
exercise of the above option applicable to this Section with respect to any
Securities of or within a series, the Company shall be deemed to have been
discharged from its obligations with respect to such Outstanding Securities on
the date the conditions set forth in Section 1404 are satisfied (hereinafter, “defeasance”).  For this purpose, such defeasance means that
the Company and the Guarantors shall be deemed to have paid and discharged the
entire indebtedness represented by such Outstanding Securities, which shall
thereafter be deemed to be “Outstanding” only for the purposes of Section 1405
and the other Sections of this Indenture referred to in (A) and (B) below, 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), except
for the following which shall survive until otherwise terminated or discharged
hereunder:  (A) the rights of Holders of
such Outstanding Securities to receive, solely from the trust fund described in
Section 1404 and as more fully set forth in such Section, payments in respect
of the principal of (and premium, if any) and interest on such Securities when
such payments are due, (B) the Company’s obligations with respect to such
Securities under Sections 305, 306, 1002 and 1003 and with respect to the payment
of additional amounts, if any, if provided for pursuant to Section 301, (C) the
rights, powers, trusts, duties and immunities of the Trustee hereunder and (D)
this Article Fourteen.  Subject to
compliance with

 

71

 

this Article Fourteen, the
Company may exercise its option under this Section 1402 notwithstanding the
prior exercise of its option under Section 1403 with respect to such Securities.

 

SECTION 1403.             Covenant
Defeasance.  Upon the Company’s exercise
of the above option applicable to this Section with respect to any Securities
of or within a series, the Company shall be released from its obligations under
Sections 803, 1006 and 1007 and, if specified pursuant to Section 301, its
obligations under any other covenant, with respect to such Outstanding
Securities on and after the date the conditions set forth in Section 1404 are
satisfied (hereinafter, “covenant defeasance”), and such Securities
shall thereafter be deemed to be not “Outstanding” for the purposes of any
direction, waiver, consent or declaration or Act of Holders (and the
consequences of any thereof) in connection with Section 803 or 1006, or such
other covenant, but shall continue to be deemed “Outstanding” for all other
purposes hereunder.  For this purpose,
such covenant defeasance means that, with respect to such Outstanding
Securities, the Company and its Subsidiaries may omit to comply with and shall
have no liability in respect of any term, condition or limitation set forth in
any such Section or such other covenant, whether directly or indirectly, by
reason of any reference elsewhere herein to any such Section or such other
covenant or by reason of reference in any such Section or such other covenant
to any other provision herein or in any other document and such omission to
comply shall not constitute a default or an Event of Default under Section 501(3)
or Section 501(11) or otherwise, as the case may be, but, except as specified
above, the remainder of this Indenture and such Securities shall be unaffected
thereby.

 

SECTION 1404.             Conditions
to Defeasance or Covenant Defeasance. 
The following shall be the conditions to application of either Section
1402 or Section 1403 to any Outstanding Securities of or within a series:

 

(1)           The
Company shall irrevocably have deposited or caused to be deposited with the
Trustee (or another trustee satisfying the requirements of Section 608 who
shall agree to comply with the provisions of this Article Fourteen applicable
to it) as trust funds in trust for the purpose of making the following
payments, specifically pledged as security for, and dedicated solely to, the
benefit of the Holders of such Securities, (A) an amount (in such currency in
which such Securities are then specified as payable at Stated Maturity), or (B)
Government Obligations applicable to such Securities (determined on the basis
of the currency in which such Securities are then specified as payable at
Stated Maturity) which through the scheduled payment of principal and interest
in respect thereof in accordance with their terms will provide, not later than
one day before the due date of any payment of principal (including any premium)
and interest, if any, under such Securities, money in an amount, or (C) a
combination thereof, sufficient, in the opinion of a nationally recognized firm
of independent public accountants expressed in a written certification thereof
delivered to the Trustee, to pay and discharge, and which shall be applied by
the Trustee (or other qualifying trustee) to pay and discharge, the principal
of (and premium, if any), including Redemption Price and Repayment Price, and
interest on such Outstanding Securities on the Stated Maturity of such
principal or installment of principal or interest.

 

72

 

(2)           No
Event of Default or event which with notice or lapse of time or both would
become an Event of Default with respect to such Securities shall have occurred
and be continuing on the date of such deposit or, insofar as paragraphs (5) and
(6) of Section 501 are concerned, at any time during the period ending on the
91st day after the date of such deposit (it being understood that this
condition shall not be deemed satisfied until the expiration of such period).

 

(3)           Such
defeasance or covenant defeasance shall not result in a breach or violation of,
or constitute a default under, this Indenture or any other material agreement
or instrument to which the Company is a party or by which it is bound.

 

(4)           In
the case of an election under Section 1402, the Company shall have delivered to
the Trustee an Opinion of Counsel in the United States stating that (x) the
Company has received from, or there has been published by, the Internal Revenue
Service a ruling, or (y) since the date of execution of this Indenture, there
has been a change in the applicable United States Federal income tax law, in
either case to the effect that, and based thereon such opinion shall confirm
that, the Holders of such Outstanding Securities will not recognize income,
gain or loss for United States Federal income tax purposes as a result of such
defeasance and will be subject to United States 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.

 

(5)           In
the case of an election under Section 1403, the Company shall have delivered to
the Trustee an Opinion of Counsel in the United States to the effect that the
Holders of such Outstanding Securities of such series will not recognize
income, gain or loss for United States Federal income tax purposes as a result
of such covenant defeasance and will be subject to United States 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.

 

(6)           The
Company shall have delivered to the Trustee an Officers’ Certificate stating
that the deposit made by the Company pursuant to its election under Section
1402 or 1403 was not made by the Company with the intent of preferring the Holders
over other creditors of the Company or with the intent of defeating, hindering,
delaying or defrauding creditors of the Company or others.

 

(7)           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 1402 or the covenant defeasance under
Section 1403 (as the case may be) have been complied with and an Opinion of
Counsel to the effect that either (i) as a result of a deposit pursuant to
paragraph (1) above and the related exercise of the Company’s option under Section 1402
or Section 1403 (as the case may be), registration is not required under
the Investment Company Act of 1940, as amended, by the Company, with respect to
the trust funds representing such deposit, or by the trustee for such trust
funds or (ii) all necessary registrations under said Act have been effected.

 

73

 

(8)           The
Company shall have delivered to the Trustee an Opinion of Counsel to the effect
that assuming no intervening bankruptcy of the Company between the date of
deposit and the 91st day following the date of deposit and that no Holder is an
insider of the Company, after the 91st day following the date of deposit, the
trust funds will not be subject to the effect of any applicable bankruptcy,
insolvency, reorganization or similar laws affecting creditors’ rights
generally.

 

(9)           Notwithstanding
any other provisions of this Section, such defeasance or covenant defeasance
shall be effected in compliance with any additional or substitute terms,
conditions or limitations in connection therewith pursuant to Section 301.

 

SECTION 1405.             Deposited
Money and Government Obligations to Be Held in Trust; Other Miscellaneous Provisions.  Subject to the provisions of the last
paragraph of Section 1003, all money and Government Obligations (or other
property as may be provided pursuant to Section 301) (including the proceeds
thereof) deposited with the Trustee (or other qualifying trustee—collectively
for purposes of this Section 1405, the “Trustee”) pursuant to Section
1404 in respect of any Outstanding Securities of such 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 acting as its own Paying Agent) as the Trustee
may determine, to the Holders of such Securities of all sums due and to become
due thereon in respect of principal (and premium, if any) and interest, but
such money need not be segregated from other funds except to the extent required
by law.

 

The Company shall pay and indemnify the
Trustee on an after-tax basis against any tax, fee or other charge imposed on
or assessed against the money or Government Obligations deposited pursuant to
Section 1404 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 such Outstanding Securities.

 

Anything in this Article Fourteen to the
contrary notwithstanding, the Trustee shall deliver or pay to the Company from
time to time upon Company Request any money or Government Obligations (or other
property and any proceeds therefrom) held by it as provided in Section 1404
which, in the opinion of a nationally recognized firm of independent public accountants
expressed in a written certification thereof delivered to the Trustee, are in
excess of the amount thereof which would then be required to be deposited to
effect an equivalent defeasance or covenant defeasance, as applicable, in accordance
with this Article.

 

74

 

ARTICLE FIFTEEN

 

GUARANTEE

 

SECTION 1501.             Unconditional
Guarantee.

 

Each Guarantor
hereby unconditionally guarantees (such guarantee to be referred to herein as a
“Guarantee”), on a senior unsecured basis jointly and severally, to each
Holder of a Security authenticated and delivered by the Trustee and to the
Trustee and its successors and assigns, the Securities or the obligations of
the Company hereunder or thereunder, that: 
(i) the principal of and interest on the Securities will be promptly
paid in full when due, subject to any applicable grace period, whether at
maturity, by acceleration or otherwise and interest on the overdue principal,
if any, and interest on any interest, to the extent lawful, of the Securities and
all other obligations of the Company to the Holders or the Trustee hereunder or
thereunder will be promptly paid in full or performed, all in accordance with
the terms hereof and thereof; and (ii) in case of any extension of time of
payment or renewal of any Securities or of any such other obligations, the same
will be promptly paid in full when due or performed in accordance with the
terms of the extension or renewal, subject to any applicable grace period,
whether at stated maturity, by acceleration or otherwise, subject, however, in
the case of clauses (i) and (ii) above, to the limitations set forth in Section
1503.  Each Guarantor hereby agrees that
its obligations hereunder shall be unconditional, irrespective of the validity,
regularity or enforceability of the Securities or this Indenture, the absence
of any action to enforce the same, any waiver or consent by any Holder of the Securities
with respect to any provisions hereof or thereof, the recovery of any judgment
against the Company, and action to enforce the same or any other circumstance
which might otherwise constitute a legal or equitable discharge or defense of a
guarantor.  Each Guarantor hereby waives
diligence, presentment, demand of payment, filing of claims with a court in the
event of insolvency or bankruptcy of the Company, any right to require a proceeding
first against the Company, protest, notice and all demands whatsoever and
covenants that this Guarantee will not be discharged except by complete
performance of the obligations contained in the Securities, this Indenture and
in this Guarantee.  If any Holder or the
Trustee is required by any court or otherwise to return to the Company, any
Guarantor, or any custodian, trustee, liquidator or other similar official
acting in relation to the Company or any Guarantor, any amount paid by the
Company or any Guarantor to the Trustee or such Holder, this Guarantee, to the
extent theretofore discharged, shall be reinstated in full force and
effect.  Each Guarantor further agrees
that, as between each Guarantor, on the one hand, and the Holders and the
Trustee, on the other hand, (x) the maturity of the obligations guaranteed
hereby may be accelerated as provided in Article Five for the purposes of this
Guarantee, notwithstanding any stay, injunction or other prohibition preventing
such acceleration in respect of the obligations guaranteed hereby, and (y) in
the event of any acceleration of such obligations as provided in Article Five,
such obligations (whether or

 

75

 

not due and payable) shall forthwith
become due and payable by each Guarantor for the purpose of this Guarantee.

 

SECTION 1502.             Severability.

 

In case any provision of this Guarantee shall
be invalid, illegal or unenforceable, the validity, legality, and enforceability
of the remaining provisions shall not in any way be affected or impaired
thereby.

 

SECTION 1503.             Limitation
of Guarantor’s Liability.

 

Each Guarantor and by its acceptance hereof
each Holder hereby confirms that it is the intention of all such parties that
the guarantee by such Guarantor pursuant to its Guarantee not constitute a
fraudulent transfer or conveyance for purposes of any Bankruptcy Law, the
Uniform Fraudulent Conveyance Act, the Uniform Fraudulent Transfer Act or any
similar Federal or state law.  To effectuate
the foregoing intention, the Holders and such Guarantor hereby irrevocably
agree that the obligations of such Guarantor under its Guarantee shall be limited
to the maximum amount as will, after giving effect to all other contingent and
fixed liabilities of such Guarantor and after giving effect to any collections
from or payments made by or on behalf of any other Guarantor in respect of the
obligations of such other Guarantor under its Guarantee or pursuant to Section
1505, result in the obligations of such Guarantor under the Guarantee not
constituting such fraudulent transfer or conveyance.

 

SECTION 1504.             Release
of Guarantor.

 

(a)           The
Guarantee of a Guarantor will be automatically and unconditionally released without
any action on the part of the Trustee or the Holders of the Securities:  (1) in the event all of the Capital Stock of
a Guarantor is sold by the Company or a Subsidiary of the Company or a
Guarantor is merged into another entity; (2) upon the legal or covenant
defeasance of the Securities pursuant to Article Fourteen; (3) upon the sale or
other disposition of all or substantially all of the assets of such Guarantor;
(4) if such Guarantor ceases to be a Subsidiary of the Company; or (5) upon the
occurrence of the Fall-Away Event.

 

(b)           The
Trustee shall deliver an appropriate instrument evidencing such release upon receipt
of a request by the Company accompanied by an Officers’ Certificate and Opinion
of Counsel certifying as to the compliance with this Section 1504.

 

SECTION 1505.             Contribution.

 

In order to provide for just and equitable
contribution among the Guarantors, the Guarantors agree, inter se, that in the
event any payment or distribution is made by any Guarantor (a “Funding
Guarantor”) under its Guarantee, such Funding Guarantor shall be entitled
to a contribution from all other Guarantors in a pro rata amount based on the
Adjusted Net Assets (as defined below) of each Guarantor (including the Funding
Guarantor) for all payments, damages and expenses incurred by that Funding
Guarantor in discharging the Company’s obligations with respect to the
Securities or any other Guarantor’s obligations with respect to its Guarantee.  “Adjusted Net Assets” of such
Guarantor at any date shall mean the lesser of the amount by which

 

76

 

(x) the fair
value of the property of such Guarantor exceeds the total amount of
liabilities, including, without limitation, contingent liabilities (after giving
effect to all other fixed and contingent liabilities incurred or assumed on
such date), but excluding liabilities under its Guarantee, of such Guarantor at
such date and (y) the present fair salable value of the assets of such Guarantor
at such date exceeds the amount that will be required to pay the probable liability
of such Guarantor on its debts (after giving effect to all other fixed and
contingent liabilities incurred or assumed on such date), excluding debt in
respect of the Guarantee of such Guarantor, as they become absolute and
matured.

 

SECTION 1506.             Waiver
of Subrogation.

 

Until all Obligations are paid in full, each
Guarantor hereby irrevocably waives any claims or other rights which it may now
or hereafter acquire against the Company that arise from the existence,
payment, performance or enforcement of such Guarantor’s obligations under its
Guarantee and this Indenture, including, without limitation, any right of
subrogation, reimbursement, exoneration, indemnification, and any right to participate
in any claim or remedy of any Holder against the Company, whether or not such
claim, remedy or right arises in equity, or under contract, statute or common
law, including, without limitation, the right to take or receive from the
Company, directly or indirectly, in cash or other property or by set-off
or in any other manner, payment or security on account of such claim or other
rights.  If any amount shall be paid to
any Guarantor in violation of the preceding sentence and the Securities shall
not have been paid in full, such amount shall have been deemed to have been
paid to such Guarantor for the benefit of, and held in trust for the benefit
of, the Holders, and shall, forthwith be paid to the Trustee for the benefit of
such Holders to be credited and applied upon the Securities, whether matured or
unmatured, in accordance with the terms of this Indenture.  Each Guarantor acknowledges that it will
receive direct and indirect benefits from the financing arrangements contemplated
by this Indenture and that the waiver set forth in this Section 1506 is
knowingly made in contemplation of such benefits.

 

SECTION 1507.             Execution
of Guarantee.

 

To evidence their guarantee to the Holders
set forth in this Article Fifteen, the Guarantors hereby agree to execute the
Guarantee in substantially the form attached hereto as Exhibit C, which
shall be endorsed on each Security ordered to be authenticated and delivered by
the Trustee.  Each Guarantor hereby
agrees that its Guarantee set forth in this Article Fifteen shall remain in
full force and effect notwithstanding any failure to endorse on each Security a
notation of such Guarantee.  Each such
Guarantee shall be signed on behalf of each Guarantor by one of its authorized
Officers prior to the authentication of the Security on which it is endorsed,
and the delivery of such Security by the Trustee, after the authentication
thereof hereunder, shall constitute due delivery of such Guarantee on behalf of
such Guarantor.  Such signatures upon the
Guarantee may be by manual or facsimile signature of such officers and may be
imprinted or otherwise reproduced on the Guarantee, and in case any such
officer who shall have signed the Guarantee shall cease to be such officer
before the Security on which such Guarantee is endorsed shall have been
authenticated and delivered by the Trustee or disposed of by the Company, such Security
nevertheless may be authenticated and delivered or disposed of as though the
Person who signed the Guarantee had not ceased to be such officer of the
Guarantor.

 

77

 

SECTION 1508.             Waiver
of Stay, Extension or Usury Laws.

 

Each Guarantor covenants (to the extent that
it may lawfully do so) that it will not at any time insist upon, plead, or in
any manner whatsoever claim or take the benefit or advantage of, any stay or
extension law or any usury law or other law that would prohibit or forgive each
such Guarantor from performing its Guarantee as contemplated herein, wherever
enacted, now or at any time hereafter in force, or which may affect the
covenants or the performance of this Indenture; and (to the extent that it may
lawfully do so) each such Guarantor hereby expressly waives all benefit or
advantage of any such law, and covenants that it will not hinder, delay or
impede the execution of any power herein granted to the Trustee, but will
suffer and permit the execution of every such power as though no such law had
been enacted.

 

ARTICLE SIXTEEN

 

IMMUNITY OF INCORPORATORS, STOCKHOLDERS,

OFFICERS, DIRECTORS AND EMPLOYEES

 

SECTION 1601.     Exemption
from Individual Liability.  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, director
or employee, as such, past, present or future, of the Company or of any
successor corporation, either directly or through the Company, 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
of the Company, and that no such personal liability whatever shall attach to,
or is or shall be incurred by, the incorporators, stockholders, officers,
directors or employees, as such, of the Company or of any 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, 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, director or employee,
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 issue of such Securities.

 

*     *     *     *

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

 

[Signature pages follow.]

 

78

 

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

 

	
   

  	
  CHEMTURA
  CORPORATION

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  	 

	
   

  	
   

  	
  Name:

  	 

	
   

  	
   

  	
  Title:

  	 

	
   

  	
   

  
	
   

  	
  A & M CLEANING PRODUCTS, LLC

  
	
   

  	
  AQUA CLEAR INDUSTRIES, LLC

  
	
   

  	
  ASCK, INC.

  
	
   

  	
  ASEPSIS, INC.

  
	
   

  	
  BIOLAB TEXTILE ADDITIVES, LLC

  
	
   

  	
  BIO-LAB, INC.

  
	
   

  	
  CHEMTURA USA CORPORATION

  
	
   

  	
  CNK CHEMICAL REALTY CORPORATION

  
	
   

  	
  CROMPTON COLORS INCORPORATED

  
	
   

  	
  CROMPTON HOLDING CORPORATION

  
	
   

  	
  CROMPTON MONOCHEM, INC.

  
	
   

  	
  ENENCO, INCORPORATED

  
	
   

  	
  GREAT LAKES CHEMICAL CORPORATION

  
	
   

  	
  GREAT LAKES CHEMICAL GLOBAL, INC.

  
	
   

  	
  GT SEED TREATMENT, INC.

  
	
   

  	
  HOMECARE LABS, INC.

  
	
   

  	
  ISCI, INC.

  
	
   

  	
  KEM MANUFACTURING CORPORATION

  
	
   

  	
  MONOCHEM, INC.

  
	
   

  	
  NAUGATUCK TREATMENT COMPANY

  
	
   

  	
  RECREATIONAL WATER PRODUCTS, INC.

  
	
   

  	
  UNIROYAL CHEMICAL COMPANY LIMITED (DELAWARE)

  
	
   

  	
  WEBER CITY ROAD LLC

  
	
   

  	
  WRL OF INDIANA, INC.

  
	
   

  	
   

  
	
   

  	
   

  	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  Name:

  	 

	
   

  	
   

  	
   

  	
  Title:

  	 

	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  WELLS FARGO
  BANK, N.A.,

  
	
   

  	
  as Trustee

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  	 

	
   

  	
   

  	
  Name:

  	 

	
   

  	
   

  	
  Title:

  	 

									

 

 

EXHIBIT A

 

[FORM OF INITIAL SECURITY]

 

CHEMTURA CORPORATION

	
  CUSIP No.

  	
   

  	
  $

  

 

No.

 

[   ]% NOTES DUE 2016

 

CHEMTURA CORPORATION, a Delaware corporation,
as issuer (the “Company”), for value received, promises to pay to CEDE
& CO. or registered assigns the principal sum of                                                         
(                            )
on June 1, 2016.

 

Interest Payment Dates:  June 1 and December 1.

 

Record Dates: 
May 15 and November 15.

 

Reference is made to the further provisions
of this Security contained herein, which will for all purposes have the same effect
as if set forth at this place.

 

A-1

 

IN WITNESS WHEREOF, the Company has caused
this Security to be signed manually or by facsimile by one of its duly
authorized officers.

 

	
   

  	
  CHEMTURA
  CORPORATION

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  

 

 

Certificate of Authentication

 

This is one of the [   ]% Notes
due 2016 referred to in the within-mentioned Indenture.

 

	
   

  	
  WELLS FARGO
  BANK, N.A.,

  
	
   

  	
  as Trustee

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  

 

Dated:  [  ]

 

A-2

 

[FORM OF REVERSE OF SECURITY]

 

CHEMTURA CORPORATION

 

[   ]% NOTES DUE 2016

 

1.             Interest.  CHEMTURA CORPORATION, a Delaware corporation,
as issuer (the “Company”), promises to pay, until the principal hereof
is paid or made available for payment, interest on the principal amount set
forth on the face hereof at a rate of [   ]% per annum.  Interest shall be payable semi-annually
in arrears on June 1 and December 1, commencing on December 1, 2006.  Interest hereon will accrue from the most
recent date to which interest has been paid or, if no interest has been paid,
from and including the Issue Date and will be computed on the basis of a 360-day
year comprised of twelve 30-day months. 
The Company shall pay interest on overdue principal and on overdue
interest (to the full extent permitted by law) at the rate borne by the Securities.

 

2.             Method
of Payment.  The Company will pay
interest hereon (except Defaulted Interest) to the Persons who are Holders at
the close of business on the May 15 or November 15 next preceding the interest
payment date (whether or not a Business Day). 
Holders must surrender Securities to a Paying Agent to collect principal
payments.  The Company will pay principal
and interest in money of the United States of America that at the time of payment
is legal tender for payment of public and private debts.  Interest may be paid by check mailed to the
Holder entitled thereto at the address indicated on the register maintained by
the Registrar for the Securities.

 

3.             Paying
Agent and Registrar.  Initially, Wells
Fargo Bank, N.A. (the “Trustee”) will act as a Paying Agent and Registrar.  The Company may change any Paying Agent or
Registrar without notice.  Neither the
Company nor any of its Affiliates may act as Paying Agent or Registrar.

 

4.             Indenture.  The Company issued the Securities under an
Indenture dated as of              ,
2006 (the “Indenture”) among the Company and the Trustee.  This is one of an issue of Securities of the
Company issued, or to be issued, under the Indenture.  The terms of the Securities include those
stated in the Indenture and those made part of the Indenture by reference to
the Trust Indenture Act of 1939 (15 U.S. Code §§ 77aaa-77bbbb), as amended
from time to time.  The Securities are
subject to all such terms, and Holders are referred to the Indenture and such
Act for a statement of them.  Capitalized
and certain other terms used herein and not otherwise defined have the meanings
set forth in the Indenture.

 

5.             Redemption.  At any time prior to the Maturity Date, the
Company may, at its option, redeem all or any portion of the Securities at the
Make-Whole Price plus accrued and unpaid interest to the date of redemption.

 

“Make-Whole Amount” with respect to a Security
means an amount equal to the excess, if any, of (a) the present value of the
remaining interest, premium and principal payments due on such Security (excluding
any portion of such payments of interest accrued as of the

 

A-3

 

redemption
date) as if such Security were redeemed on the Maturity Date, computed using a
discount rate equal to the Treasury Rate plus 50 basis points, over (b) the
outstanding principal amount of such Security. “Treasury Rate” with respect
to a Security means the yield to maturity (calculated on a semi-annual bond
equivalent basis) at the time of the computation of United States Treasury
securities with a constant maturity (as compiled by and published in the most
recent Federal Reserve Statistical Release H.15(519), which has become publicly
available at least two business days prior to the date of the redemption notice
or, if such Statistical Release is no longer published, any publicly available
source of similar market data) most nearly equal to the then remaining maturity
of such Security assuming that such Security will be redeemed on the Maturity
Date; provided, however, that if the Make-Whole Average Life of a
Security is not equal to the constant maturity of the United States Treasury
security for which a weekly average yield is given, the Treasury Rate shall be
obtained by linear interpolation (calculated to the nearest one-twelfth of a
year) from the weekly average yields of United States Treasury securities for
which such yields are given, except that if the Make-Whole Average Life of such
Security is less than one year, the weekly average yield on actually traded
United States Treasury securities adjusted to a constant maturity of one year
shall be used.

 

“Make-Whole Average Life” means, with
respect to a Security, the number of years (calculated to the nearest
one-twelfth of a year) between the date of redemption of such Security and the
Maturity Date.

 

“Make-Whole Price” means the sum of
the outstanding principal amount of the Securities to be redeemed plus the
Make-Whole Amount of such Securities.

 

“Maturity Date” means June 1, 2016.

 

6.             Notice
of Redemption.  Notices of redemption
shall be mailed at least 30 but not more than 60 days before the Redemption Date
to each Holder of Securities to be redeemed at its registered address.  Notices of redemption may not be conditional.  If any Security is to be redeemed in part
only, the notice of redemption that relates to such Security shall state the
portion of the principal amount thereof to be redeemed.

 

7.             Sinking
Fund.  There will be no mandatory sinking
fund payment for the Securities.

 

8.             Guarantees.  The obligations of the Company hereunder are
fully and unconditionally guaranteed, jointly and severally, on a senior
unsecured basis by the Guarantors. The Guarantors' gurantees of the obligations
of the Company hereunder will be unconditionally released upon, among other
things, a Fall-Away Event.

 

9.             Denominations,
Transfer, Exchange.  The Securities are
in registered form without coupons in minimum denominations of $2,000 and
integral multiples of $1,000 thereof.  A
Holder may transfer or exchange Securities in accordance with the
Indenture.  The Registrar may require a
Holder, among other things, to furnish appropriate endorsements and transfer
documents and to pay to it any taxes and fees required by law or permitted by
the Indenture.  The Registrar need not
register the transfer of or exchange any Securities or portion of a Security selected
for redemption, or register the transfer of or exchange any Securities for a
period of 15 days before a mailing of notice of redemption.

 

A-4

 

10.           Persons
Deemed Owners.  The registered Holder
of this Security may be treated as the owner of this Security for all purposes.

 

11.           Unclaimed
Money.  If money for the payment of
principal or interest remains unclaimed for two years, the Trustee will pay the
money back to the Company at its written request.  After that, Holders entitled to the money
must look to the Company for payment as general creditors unless an “abandoned
property” law designates another Person.

 

12.           Amendment,
Supplement, Waiver, Etc.  The Company
and the Trustee (if a party thereto) may, without the consent of the Holders of
any outstanding Securities, amend, waive or supplement the Indenture or the Securities
for certain specified purposes, including, among other things, curing
ambiguities, defects or inconsistencies, maintaining the qualification of the
Indenture under the TIA, providing for the assumption by a successor to the
Company of its obligations under the Indenture and making any change that does
not materially and adversely affect the rights of any Holder.  Other amendments and modifications of the
Indenture or the Securities may be made by the Company and the Trustee with the
consent of the Holders of not less than a majority of the aggregate principal
amount of the outstanding Securities, subject to certain exceptions requiring
the consent of the Holders of the particular Securities to be affected.

 

13.           Restrictive
Covenants.  The Indenture imposes
certain limitations on the ability of the Company and its Subsidiaries to,
among other things, create liens, enter into sale and leaseback transactions or
consolidate, merge or sell all or substantially all of the assets of the
Company and its Subsidiaries and requires the Company to provide reports to
Holders of the Securities.  Such
limitations are subject to a number of important qualifications and
exceptions.  Pursuant to Section 1004 of
the Indenture, the Company must annually report to the Trustee on compliance
with such limitations.

 

14.           Successor
Corporation.  When a successor
corporation assumes all the obligations of its predecessor under the Securities
and the Indenture and the transaction complies with the terms of Article Eight
of the Indenture, the predecessor corporation will, except as provided in
Article Eight, be released from those obligations.

 

15.           Defaults
and Remedies.  Events of Default are
set forth in the Indenture.  Subject to
certain limitations in the Indenture, if an Event of Default with respect to
Securities of this series occurs and is continuing, then, and in each and every
such case, either the Trustee, by notice in writing to the Company, or the
Holders of not less than 25% of the principal amount of the Securities of this
series then outstanding, by notice in writing to the Company and the Trustee,
may, and the Trustee at the request of such Holders shall, declare due and
payable, if not already due and payable, the principal of and any accrued and
unpaid interest on all of the Securities of this series; and upon any such
declaration all such amounts upon such Securities shall become and be immediately
due and payable, anything in the Indenture or in the Securities to the contrary
notwithstanding.  If an Event of Default
specified in clause (8) or (9) of Section 501 of the Indenture occurs with
respect to the Company, then the principal of and any accrued and unpaid
interest on all of the Securities shall immediately become due and payable
without any declaration or other act on the part of the Trustee or any
Holder.  Holders may not enforce the
Indenture or the Securities except as provided in the Indenture.  The Trustee may require indemnity
satisfactory to it before it enforces the Indenture or the Securities.  Subject to certain limitations,

 

A-5

 

Holders of a
majority in principal amount of the then outstanding Securities of this series may
direct the Trustee in its exercise of any trust or power.

 

16.           Trustee
Dealings with Company.  The Trustee,
in its individual or any other capacity, may make loans to, accept deposits
from, and perform services for the Company or its Affiliates, and may otherwise
deal with the Company or its Affiliates, as if it were not Trustee.

 

17.           No
Recourse Against Others.  No
director, officer, employee, incorporator, member of the Board of Directors or
holder of Capital Stock of the Company, as such, will have any liability for
any obligations of the Company under this Security or the Indenture or for any
claim based on, in respect of, or by reason of, such obligations.  Each Holder of this Security by accepting
this Security waives and releases all such liability.  The waiver and release are part of the
consideration for issuance of this Security.

 

18.           Discharge.  The Company’s obligations pursuant to the
Indenture will be discharged, except for obligations pursuant to certain
sections thereof, subject to the terms of the Indenture, upon the payment of
all the Securities or upon the irrevocable deposit with the Trustee of United
States dollars or U.S. Government Obligations sufficient to pay when due
principal of and interest on the Securities to maturity or redemption, as the
case may be.

 

19.           Authentication.  This Security shall not be valid until the
Trustee signs the certificate of authentication on the other side of this Security.

 

20.           Governing
Law.  THIS SECURITY SHALL BE GOVERNED
BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK.  The Trustee and the Company agree to submit
to the non-exclusive jurisdiction of the courts of the State of New York and of
the United States located in New York County in any action or proceeding
arising out of or relating to the Indenture or the Securities.

 

21.           Abbreviations.  Customary abbreviations may be used in the
name of a Holder or an assignee, such as: 
TEN COM (=  tenants in common),
TENANT (= tenants by the entireties), JT TEN (= joint tenants with right of
survivorship and not as tenants in common), CUST (= Custodian), and U/G/M/A (=
Uniform Gifts to Minors Act).

 

22.           CUSIP
Numbers.  Pursuant to a
recommendation promulgated by the Committee on Uniform Security Identification
Procedures, the Company has caused CUSIP numbers to be printed on the Securities
and the Trustee may use CUSIP numbers in notices of redemption as a convenience
to Holders.  No representation is made as
to the accuracy of such numbers either as printed on the Securities or as
contained in any notice of redemption and reliance may be placed only on the
other identification numbers placed thereon.

 

A-6

 

The Company will furnish to any Holder upon
written request and without charge a copy of the Indenture.  Requests may be made to:

 

Chemtura Corporation

199 Benson Road

Middlebury, CT 06749

Attn:  [     ]

Telephone:      [     ]

Facsimile:         [     ]

 

With a copy to:

 

Skadden, Arps, Slate Meagher & Flom LLP

4 times Square

New York, NY 10036-6518

Attn:  Phyllis Korff

Telephone:      [     ]

Facsimile:         [     ]

 

A-7

 

ASSIGNMENT

 

	
  I or we assign and transfer this Security
  to:

  	
   

  
	
   

  	
   

  
	
   

  
	
  (Insert assignee’s social security or tax I.D. number)

  
	
   

  
	
   

  
	
  (Print or type name, address and zip code of assignee)

  
	
   

  	
   

  
	
  and irrevocably appoint:

  	
   

  
	
   

  	
   

  
	
  Agent to transfer
  this Security on the books of the Company. The Agent may substitute another
  to act for him.

  
	
   

  	
   

  
	
  Date:

  	
   

  	
   

  	
  Your Signature:

  	
   

  	
   

  
	
   

  	
   

  	
  (Sign exactly as your name appears on

  the other side of this Security)

  
	
   

  	
   

  
	
   

  	
   

  
	
  Signature Guarantee:

  	
   

  	
   

  
									

 

SIGNATURE GUARANTEE

 

Signatures must be guaranteed by an “eligible
guarantor institution” meeting the requirements of the Registrar, which requirements
include membership or participation in the Security Transfer Agent Medallion
Program (“STAMP”) or such other “signature guarantee program” as may be
determined by the Registrar in addition to, or in substitution for, STAMP, all
in accordance with the Securities Exchange Act of 1934, as amended.

 

A-8

 

OPTION OF HOLDER TO ELECT PURCHASE

 

If you wish to elect to have all or any
portion of this Security purchased by the Company pursuant to Section 1009
(“Change of Control Offer”) of the Indenture, check the applicable box:

 

	
   

  	
  in whole

  	
  o

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  in part

  	
  o

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Amount to be

  	
   

  
	
   

  	
  purchased: $

  	
   

  	
   

  	
   

  
	
   

  
	
   

  	
  Dated: 

  	
   

  	
   

  	
  Signature:

  	
   

  	
   

  
	
   

  	
   

  	
  (Sign
  exactly as your name appears on the other side of this Note)

  
	
   

  	
   

  
	
   

  	
  Signature
  Guarantee:

  	
   

  	
   

  
	
   

  	
   

  	
  (Participant in recognized signature guarantee medallion program)

  
	
   

  	
   

  
	
   

  	
  Social
  Security Number or

  	
   

  
	
   

  	
  Taxpayer
  Identification Number:

  	
   

  	
   

  
															

 

A-9

 

EXHIBIT B

 

 [FORM OF LEGEND FOR GLOBAL SECURITY]

 

Any Global Security authenticated and
delivered hereunder shall bear a legend in substantially the following form:

 

This Security is a Global Security within the
meaning of the Indenture hereinafter referred to and is registered in the name
of a Depository or a nominee of a Depository. 
This Security is not exchangeable for Securities registered in the name
of a person other than the Depository or its nominee except in the limited
circumstances described in the Indenture, and no transfer of this Security (other
than a transfer of this Security as a whole by the Depository to a nominee of
the Depository or by a nominee of the Depository to the Depository or another
nominee of the Depository) may be registered except in the limited
circumstances described in the Indenture.

 

Unless this Certificate is presented by an
authorized representative of The Depository Trust Company (a New York corporation)
(“DTC”) to the issuer or its agent for registration of transfer,
exchange, or payment, and any Certificate issued is registered in the name of
Cede & Co. or in such other name as is requested by an authorized representative
of DTC (and any payment is made to Cede & Co. or such other entity as is requested
by an authorized representative of DTC), any transfer, pledge or other use
hereof for value or otherwise by or to any person is wrongful inasmuch as the
registered owner hereof, Cede & Co., has an interest herein.

 

B-1

 

EXHIBIT C

 

GUARANTEE

 

For value received, the undersigned hereby
unconditionally guarantees, as principal obligor and not only as a surety, to
the Holder of this Security the cash payments in United States dollars of
principal of, premium, if any, and interest on this Security in the amounts and
at the times when due and interest on the overdue principal, premium, if any,
and interest, if any, of this Security, if lawful, and the payment or performance
of all other obligations of the Company under the Indenture (as defined below)
or the Security, to the Holder of this Security and the Trustee, all in
accordance with and subject to the terms and limitations of this Security, Article
Fifteen of the Indenture and this Guarantee. 
This Guarantee will become effective in accordance with Article Fifteen
of the Indenture and its terms shall be evidenced therein.  The validity and enforceability of this Guarantee
shall not be affected by the fact that it is not affixed to any particular Security.  Capitalized terms used but not defined herein
shall have the meanings ascribed to them in the Indenture dated as of [April 19],
2006, among Chemtura Corporation, a Delaware corporation, as issuer (the “Company”),
each of the Guarantors named therein and Wells Fargo Bank, N.A., as trustee
(the “Trustee”) (as amended or supplemented, the “Indenture”).

 

THIS GUARANTEE 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 LAW OF ANOTHER JURISDICTION WOULD BE REQUIRED THEREBY.  Each Guarantor hereby agrees to submit to the
jurisdiction of the courts of the State of New York in any action or
proceeding arising out of or relating to this Guarantee.

 

C-1

 

This Guarantee is subject to release upon the
terms set forth in the Indenture.

 

	
   

  	
  A & M CLEANING PRODUCTS, LLC

  
	
   

  	
  AQUA CLEAR INDUSTRIES, LLC

  
	
   

  	
  ASCK, INC.

  
	
   

  	
  ASEPSIS, INC.

  
	
   

  	
  BIOLAB TEXTILE ADDITIVES, LLC

  
	
   

  	
  BIO-LAB, INC.

  
	
   

  	
  CHEMTURA USA CORPORATION

  
	
   

  	
  CNK CHEMICAL REALTY CORPORATION

  
	
   

  	
  CROMPTON COLORS INCORPORATED

  
	
   

  	
  CROMPTON HOLDING CORPORATION

  
	
   

  	
  CROMPTON MONOCHEM, INC.

  
	
   

  	
  ENENCO, INCORPORATED

  
	
   

  	
  GREAT LAKES CHEMICAL CORPORATION

  
	
   

  	
  GREAT LAKES CHEMICAL GLOBAL, INC.

  
	
   

  	
  GT SEED TREATMENT, INC.

  
	
   

  	
  HOMECARE LABS, INC.

  
	
   

  	
  ISCI, INC.

  
	
   

  	
  KEM MANUFACTURING CORPORATION

  
	
   

  	
  MONOCHEM, INC.

  
	
   

  	
  NAUGATUCK TREATMENT COMPANY

  
	
   

  	
  RECREATIONAL WATER PRODUCTS, INC.

  
	
   

  	
  UNIROYAL CHEMICAL COMPANY LIMITED (DELAWARE)

  
	
   

  	
  WEBER CITY ROAD LLC

  
	
   

  	
  WRL OF INDIANA, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  

 

C-2EXHIBIT 4.1
                                                                     -----------

                    AMENDED AND RESTATED TREY RESOURCES, INC.
                            2004 STOCK INCENTIVE PLAN

1. PURPOSES.
The purpose of the 2004 Stock Incentive Plan (the "Plan") is to (i) provide
long-term incentives and rewards to employees, directors, independent
contractors or agents ("Eligible Participants") of Trey Resources, Inc. ("the
Company") and its subsidiaries; (ii) assist the Company in attracting and
retaining employees, directors, independent contractors or agents with
experience and/or ability on a basis competitive with industry practices; and
(iii) associate the interests of such employees, directors, independent
contractors or agents with those of the Company's stockholders.

2. EFFECTIVE DATE.
The Plan is effective as of the date it is adopted by the Board of Directors of
the Company and Awards may be made under the Plan on and after its effective
date.

3. ADMINISTRATION OF THE PLAN.
The Plan shall be administered by the Board of Directors of the Company and the
Board shall be so constituted as to permit the Plan to comply with the
disinterested administration requirements under Rule 16b-3 of the Securities
Exchange Act of 1934, as amended (the "Exchange Act"), and the "outside
director" requirement of Section 162(m) of the Internal Revenue Code of 1986, as
amended (the "Code").

The Board shall have all the powers vested in it by the terms of the Plan, such
powers to include exclusive authority (within the limitations described herein)
to select the Eligible Participants to be granted awards under the Plan, to
determine the type, size and terms of awards to be made to each Eligible
Participant selected, to determine the time when awards will be granted, when
they will vest, when they may be exercised and when they will be paid, to amend
awards previously granted and to establish objectives and conditions, if any,
for earning awards and whether awards will be paid after the end of the award
period. The Board shall have full power and authority to administer and
interpret the Plan and to adopt such rules, regulations, agreements, guidelines
and instruments for the administration of the Plan and for the conduct of its
business as the Board deems necessary or advisable and to interpret same. The
Board's interpretation of the Plan, and all actions taken and determinations
made by the Board pursuant to the powers vested in it hereunder, shall be
conclusive and binding on all parties concerned, including the Company
stockholders, any participants in the Plan and any other Eligible Participant of
the Company.

All employees of the Company and all employees of Affiliates shall be eligible
to participate in the Plan. The Board, in its sole discretion, shall from time
to time designate from among the eligible employees and among directors,
independent contractors or agents those individuals who are to receive awards
under and thereby become participants in the Plan. For purposes of the Plan,
"Affiliate" shall mean any

<PAGE>

entity, as may from time to time be designated by the Board, that is a
subsidiary corporation of the Company (within the meaning of Section 424 of the
Code), and each other entity directly or indirectly controlling or controlled by
or under common control with the Company. For purposes of this definition,
"control" means the power to direct the management and policies of such entity,
whether through the ownership of voting securities, by contract or otherwise;
and the terms "controlling" and "controlled" have meaning correlative to the
foregoing.

4. AWARDS.
(a) Types. Awards under the Plan shall be made with reference to shares of the
Company common stock and may include, but need not be limited to, stock options
(including non-statutory stock options and incentive stock options qualifying
under Section 422 of the Code), stock appreciation rights (including
free-standing, tandem and limited stock appreciation rights), warrants, dividend
equivalents, stock awards, restricted stock, phantom stock, performance shares
or other securities or rights that the Board determines to be consistent with
the objectives and limitations of the Plan. The Board may provide for the
issuance of shares of the Company common stock as a stock award for no
consideration other than services rendered or, to the extent permitted by
applicable state law, to be rendered. In the event of an award under which
shares of the Company common stock are or may in the future be issued for any
other type of consideration, the amount of such consideration shall (i) be equal
or greater than to the amount (such as the par value of such shares) required to
be received by the Company in order to assure compliance with applicable state
law and (ii) to the extent necessary to comply with Rule 16b-3 of the Exchange
Act, be equal to or greater than 50% of the fair market value of such shares on
the date of grant of such award. The Board may make any other type of award
which it shall determine is consistent with the objectives and limitations of
the Plan.

(b) Performance Goals. The Board may, but need not, establish performance goals
to be achieved within such performance periods as may be selected by it in its
sole discretion, using such measures of the performance of the Company and/or
its Affiliates as it may select.

(c) Rules and Policies. The Board may adopt from time to time written rules and
policies implementing the Plan. Such rules and policies may include, but need
not be limited to, the type, size and term of awards to be made to participants
and the conditions for the exercise or payment of such awards.

5. SHARES OF STOCK SUBJECT TO THE PLAN.
The shares that may be delivered or purchased or used for reference purposes
under the Plan shall not exceed an aggregate of twenty percent (20%) of the
issued and outstanding shares of the Company's Class A common, $.00001 par value
per share, as determined by the Board from time to time. Any shares subject to
an award which for any reason expires or is terminated unexercised as to such
shares shall again be available for issuance under the Plan.

                                        2
<PAGE>

6. PAYMENT OF AWARDS.
The Board shall determine the extent to which awards shall be payable in cash,
shares of the Company common stock or any combination thereof. The Board may
determine that all or a portion of a payment to a participant under the Plan,
whether it is to be made in cash, shares of the Company common stock or a
combination thereof shall be deferred. Deferrals shall be for such periods and
upon such terms as the Board may determine in its sole discretion.

7. VESTING.
The Board may determine that all or a portion of a payment to a participant
under the Plan, whether it is to be made in cash, shares of the Company common
stock or a combination thereof, shall be vested at such times and upon such
terms as may be selected by it in its sole discretion.

8. DILUTION AND OTHER ADJUSTMENT.
In the event of any change in the outstanding shares of the Company common stock
by reason of any split, stock dividend, recapitalization, merger, consolidation,
spin-off, reorganization, combination or exchange of shares or other similar
corporate change, such equitable adjustments shall be made in the Plan and the
awards thereunder as the Board determines are necessary or appropriate,
including, if necessary, any adjustments in the number, kind or character of
shares that may be subject to existing or future awards under the Plan
(including by substitution of shares of another corporation including, without
limitation, any successor of the Company ), adjustments in the exercise,
purchase or base price of an outstanding award and any adjustments in the
maximum numbers of shares referred to in Section 4 or Section 5 of the Plan. All
such adjustments shall be conclusive and binding for all purposes of the Plan.

9. MISCELLANEOUS PROVISIONS.
(a) Rights as Stockholder. A participant under the Plan shall have no rights as
a holder of the Company common stock with respect to awards hereunder, unless
and until certificates for shares of such stock are issued to the participant.

(b) Assignment to Transfer. No award under this Plan shall be transferable by
the participant or shall be subject to any manner of alienation, sale, transfer,
assignment, pledge, encumbrance or charge (other than by or to the Company),
except (i) by will or the laws of the descent and distribution (with all
references herein to the rights or duties of holders or participants to be
deemed to include such beneficiaries or legal representatives of the holders or
participant unless the context otherwise expressly requires); (ii) subject to
the prior approval of the Board, for transfers to members of the participant's
immediate family, charitable institutions, trusts whose beneficiaries are
members of the participant's immediate family and/or charitable institutions,
trusts whose beneficiaries are members of the participant's immediate family
and/or charitable institutions, or to such other persons or entities as may be
approved by the Board in each case subject to the condition that the Board be
satisfied that such transfer is being made for the estate and/or tax planning
purposes on a gratuitous or donative basis and

                                        3
<PAGE>

without consideration (other than nominal consideration) being received
therefor. Except as provided above, during the lifetime of a participant, awards
hereunder are exercisable only by, and payable only to, the participant.

(c) Agreements. All awards granted under the Plan shall be evidenced by
agreements in such form and containing such terms and conditions (not
inconsistent with the Plan) as the Board shall adopt.

(d) Compliance with Legal Regulations. During the term of the Plan and the term
of any awards granted under the Plan, the Company will at all times reserve and
keep available such number of shares as may be issuable under the Plan, and will
seek to obtain from any regulatory body having jurisdiction, any requisite
authority required in the opinion of counsel for the Company in order to grant
shares of the Company common stock, or options to purchase such stock or other
awards hereunder, and transfer, issue or sell such number of shares of common
stock as shall be sufficient to satisfy the requirements of any options or other
awards. If in the opinion of counsel for the Company the transfer, issue or sale
of any shares of its stock under the Plan shall not be lawful for any reason
including the inability of the Company to obtain from any regulatory body having
jurisdiction authority deemed by such counsel to be necessary to such transfer,
issuance or sale, the Company shall not be obligated to transfer, issue or sell
any such shares. In any event, the Company shall not be obligated to transfer,
issue or sell any shares to any participant unless a registration statement
which complies with the provisions of the Securities Act of 1933, as amended
(the "Securities Act"), is in effect at the time with respect to such shares or
other appropriate action has been taken under and pursuant to the terms and
provisions of the Securities Act and any other applicable securities laws, or
the Company receives evidence satisfactory to the Board that the transfer,
issuance or sale of such shares, in the absence of an effective registration
statement or other appropriate action, would not constitute a violation of the
terms and provisions of the Securities Act. the Company's obligation to issue
shares upon the exercise of any award granted under the Plan shall in any case
be subject to the Company being satisfied that the shares purchased are being
purchased for investment and not with a view to the distribution thereof, if at
the time of such exercise a resale of such shares would otherwise violate the
Securities Act in the absence of an effective registration statement relating to
such shares.

(e) Withholding Taxes. the Company shall have the right to deduct from all
awards hereunder paid in cash any federal, state, local or foreign taxes
required by law to be withheld with respect to such awards and, with respect to
awards paid in stock, to require the payment (through withholding from the
participant's salary or otherwise) of any such taxes. The obligation of the
Company to make delivery of awards in cash or the Company common stock shall be
subject to currency or other restrictions imposed by any government.

(f) No Rights to Award. No Eligible Participant or other person shall have any
right to be granted an award under the Plan. Neither the Plan nor any action
taken hereunder shall be construed as giving any employee any right to be
retained in the employ of the

                                        4
<PAGE>

Company or any of its subsidiaries or shall interfere with or restrict in any
way the rights of the Company or its subsidiaries, which are hereby reserved, to
discharge the employee at any time for any reason whatsoever, with or without
good cause.

(g) Costs and Expenses. The costs and expenses of administering the Plan shall
be borne by the Company and not charged to any award or to any Eligible
Participant receiving an award.

(h) Funding of Plan. The Plan shall be unfunded. the Company shall not be
required to establish any special or separate fund or to make any other
segregation of assets to assure the payment of any award under the Plan.

10. AMENDMENTS AND TERMINATION.
(a) Amendments. The Board may at any time terminate or from time to time amend
the Plan in whole or in part, but no such action shall adversely affect any
rights or obligations with respect to any awards theretofore made under the
Plan.

Unless the majority of the directors of the Company present, or represented, and
entitled to vote at a meeting of directors shall have first approved thereof, no
amendment of the Plan shall be effective which would (i) increase the maximum
number of shares referred to in section 5 of the Plan or the maximum awards that
may be granted pursuant to section 4 of the Plan to any one individual or (ii)
extend the maximum period during which awards may be granted under the Plan. For
purposes of this section 10 (a), any (A) cancellation and re-issuance or (B)
repricing of any awards made under the Plan at a new option price shall not
constitute an amendment of this Plan.

With consent of the Eligible Participant adversely affected, the Board may amend
outstanding agreements evidencing awards under the Plan in a manner not
inconsistent with the terms of the Plan.

(b) Termination. Unless the Plan shall theretofore have been terminated as above
provided, the Plan (but not the awards theretofore granted under the Plan) shall
terminate on and no awards shall be granted after September 29, 2014.

                                        5

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00102-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00102-of-00352.parquet"}]]