exv4w4






Exhibit 4.4




 





ALLIANCE CAPITAL PARTNERS, L.P.,

as Issuer




INDENTURE




Dated as of July 31, 2001



STATE STREET BANK AND TRUST COMPANY OF CONNECTICUT, NATIONAL

ASSOCIATION,

as Trustee




FLOATING RATE JUNIOR SUBORDINATED DEFERRABLE INTEREST

DEBENTURES




DUE 2031



 








 









 








TABLE OF CONTENTS




	 	 	 	 	 
	 	 	Page	 
	ARTICLE I
	 	 	 	 
	 
	 	 	 	 
	DEFINITIONS
	 	 	 	 
	 
	 	 	 	 
	Section 1.1 Definitions
	 	 	1	 
	 
	 	 	 	 
	ARTICLE II
	 	 	 	 
	 
	 	 	 	 
	DEBENTURES
	 	 	 	 
	 
	 	 	 	 
	Section 2.1 Authentication and Dating
	 	 	8	 
	Section 2.2 Form of Trustee’s Certificate of Authentication
	 	 	9	 
	Section 2.3 Form and Denomination of Debentures
	 	 	9	 
	Section 2.4 Execution of Debentures
	 	 	10	 
	Section 2.5 Exchange and Registration of Transfer of Debentures
	 	 	10	 
	Section 2.6 Mutilated, Destroyed, Lost or Stolen Debentures
	 	 	12	 
	Section 2.7 Temporary Debentures
	 	 	13	 
	Section 2.8 Payment of interest and Additional Interest
	 	 	14	 
	Section 2.9 Cancellation of Debentures Paid, etc.
	 	 	15	 
	Section 2.10 Computation of Interest Rate
	 	 	15	 
	Section 2.11 Extension of Interest Payment Period
	 	 	17	 
	Section 2.12 CUSIP Numbers
	 	 	19	 
	 
	 	 	 	 
	ARTICLE III
	 	 	 	 
	 
	 	 	 	 
	PARTICULAR COVENANTS OF THE COMPANY
	 	 	 	 
	 
	 	 	 	 
	Section 3.1 Payment of Principal, Premium and Interest; Agreed Treatment of the Debentures
	 	 	19	 
	Section 3.2 Offices for Notices and Payments, etc.
	 	 	20	 
	Section 3.3 Appointments to Fill Vacancies in Trustee’s Office
	 	 	20	 
	Section 3.4 Provision as to Paying Agent
	 	 	20	 
	Section 3.5 Certificate to Trustee
	 	 	21	 
	Section 3.6 Additional Sums
	 	 	21	 
	Section 3.7 Compliance with Consolidation Provisions
	 	 	22	 
	Section 3.8 Limitation on Dividends
	 	 	22	 
	Section 3.9 Covenants as to the Trust
	 	 	23	 
	Section 3.10 Additional Junior Indebtedness
	 	 	23	 






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	 	 	Page	 
	ARTICLE IV
	 	 	 	 
	 
	 	 	 	 
	SECURITYHOLDERS’ LISTS AND REPORTS
	 	 	 	 
	BY THE COMPANY AND THE TRUSTEE
	 	 	 	 
	 
	 	 	 	 
	Section 4.1 Securityholders’ Lists
	 	 	23	 
	Section 4.2 Preservation and Disclosure of Lists
	 	 	23	 
	 
	 	 	 	 
	ARTICLE V
	 	 	 	 
	 
	 	 	 	 
	REMEDIES OF THE TRUSTEE AND SECURITYHOLDERS
	 	 	 	 
	UPON AN EVENT OF DEFAULT
	 	 	 	 
	 
	 	 	 	 
	Section 5.1 Events of Default
	 	 	25	 
	Section 5.2 Payment of Debentures on Default; Suit Therefor
	 	 	26	 
	Section 5.3 Application of Moneys Collected by Trustee
	 	 	28	 
	Section 5.4 Proceedings by Securityholders
	 	 	28	 
	Section 5.5 Proceedings by Trustee
	 	 	29	 
	Section 5.6 Remedies Cumulative and Continuing; Delay or Omission Not a Waiver
	 	 	29	 
	Section 5.7 Direction of Proceedings and Waiver of Defaults by Majority of Securityholders
	 	 	30	 
	Section 5.8 Notice of Defaults
	 	 	30	 
	Section 5.9 Undertaking to Pay Costs
	 	 	31	 
	 
	 	 	 	 
	ARTICLE VI
	 	 	 	 
	 
	 	 	 	 
	CONCERNING THE TRUSTEE
	 	 	 	 
	 
	 	 	 	 
	Section 6.1 Duties and Responsibilities of Trustee
	 	 	31	 
	Section 6.2 Reliance on Documents, Opinions, etc.
	 	 	32	 
	Section 6.3 No Responsibility for Recitals, etc.
	 	 	33	 
	Section 6.4 Trustee, Authenticating Agent, Paying Agents, Transfer Agents or Registrar May Own Debentures
	 	 	33	 
	Section 6.5 Moneys to be Held in Trust
	 	 	34	 
	Section 6.6 Compensation and Expenses of Trustee
	 	 	34	 
	Section 6.7 Officers’ Certificate as Evidence
	 	 	35	 
	Section 6.8 Eligibility of Trustee
	 	 	35	 
	Section 6.9 Resignation or Removal of Trustee
	 	 	35	 
	Section 6.10 Acceptance by Successor Trustee
	 	 	36	 
	Section 6.11 Succession by Merger, etc.
	 	 	37	 
	Section 6.12 Authenticating Agents
	 	 	38	 
	 
	 	 	 	 
	ARTICLE VII
	 	 	 	 
	 
	 	 	 	 
	CONCERNING THE SECURITYHOLDERS
	 	 	 	 
	 
	 	 	 	 
	Section 7.1 Action by Securityholders
	 	 	39	 






ii









 






	 	 	 	 	 
	 	 	Page	 
	Section 7.2 Proof of Execution by Securityholders
	 	 	39	 
	Section 7.3 Who Are Deemed Absolute Owners
	 	 	40	 
	Section 7.4 Debentures Owned by Company Deemed Not Outstanding
	 	 	40	 
	Section 7.5 Revocation of Consents; Future Holders Bound
	 	 	40	 
	 
	 	 	 	 
	ARTICLE VIII
	 	 	 	 
	 
	 	 	 	 
	SECURITYHOLDERS’ MEETINGS
	 	 	 	 
	 
	 	 	 	 
	Section 8.1 Purposes of Meetings
	 	 	41	 
	Section 8.2 Call of Meetings by Trustee
	 	 	41	 
	Section 8.3 Call of Meetings by Company or Securityholders
	 	 	41	 
	Section 8.4 Qualifications for Voting
	 	 	41	 
	Section 8.5 Regulations
	 	 	42	 
	Section 8.6 Voting
	 	 	42	 
	Section 8.7 Quorum; Actions
	 	 	43	 
	 
	 	 	 	 
	ARTICLE IX
	 	 	 	 
	 
	 	 	 	 
	SUPPLEMENTAL INDENTURES
	 	 	 	 
	 
	 	 	 	 
	Section 9.1 Supplemental Indentures without Consent of Securityholders
	 	 	43	 
	Section 9.2 Supplemental Indentures with Consent of Securityholders
	 	 	45	 
	Section 9.3 Effect of Supplemental Indentures
	 	 	46	 
	Section 9.4 Notation on Debentures
	 	 	46	 
	Section 9.5 Evidence of Compliance of Supplemental Indenture to be Furnished to Trustee
	 	 	46	 
	 
	 	 	 	 
	ARTICLE X
	 	 	 	 
	 
	 	 	 	 
	REDEMPTION OF SECURITIES
	 	 	 	 
	 
	 	 	 	 
	Section 10.1 Optional Redemption
	 	 	46	 
	Section 10.2 Special Event Redemption
	 	 	46	 
	Section 10.3 Notice of Redemption; Selection of Debentures
	 	 	47	 
	Section 10.4 Payment of Debentures Called for Redemption
	 	 	47	 
	 
	 	 	 	 
	ARTICLE XI
	 	 	 	 
	 
	 	 	 	 
	CONSOLIDATION, MERGER, SALE, CONVEYANCE AND LEASE
	 	 	 	 
	 
	 	 	 	 
	Section 11.1 Company May Consolidate, etc., on Certain Terms
	 	 	48	 
	Section 11.2 Transfer of Capital Stock of First Alliance
	 	 	48	 
	Section 11.3 Successor Entity to be Substituted
	 	 	49	 
	Section 11.4 Opinion of Counsel to be Given to Trustee
	 	 	49	 






iii









 






	 	 	 	 	 
	 	 	Page	 
	ARTICLE XII
	 	 	 	 
	 
	 	 	 	 
	SATISFACTION AND DISCHARGE OF INDENTURE
	 	 	 	 
	 
	 	 	 	 
	Section 12.1 Discharge of Indenture
	 	 	49	 
	Section 12.2 Deposited Moneys to be Held in Trust by Trustee
	 	 	50	 
	Section 12.3 Paying Agent to Repay Moneys Held
	 	 	50	 
	Section 12.4 Return of Unclaimed Moneys
	 	 	50	 
	 
	 	 	 	 
	ARTICLE XIII
	 	 	 	 
	 
	 	 	 	 
	IMMUNITY OF INCORPORATORS, STOCKHOLDERS,
	 	 	 	 
	OFFICERS AND DIRECTORS
	 	 	 	 
	 
	 	 	 	 
	Section 13.1 Indenture and Debentures Solely Corporate Obligations
	 	 	51	 
	 
	 	 	 	 
	ARTICLE XIV
	 	 	 	 
	 
	 	 	 	 
	MISCELLANEOUS PROVISIONS
	 	 	 	 
	 
	 	 	 	 
	Section 14.1 Successors
	 	 	51	 
	Section 14.2 Official Acts by Successor Entity
	 	 	51	 
	Section 14.3 Surrender of Company Powers
	 	 	51	 
	Section 14.4 Addresses for Notices, etc.
	 	 	51	 
	Section 14.5 Governing Law
	 	 	52	 
	Section 14.6 Evidence of Compliance with Conditions Precedent
	 	 	52	 
	Section 14.7 Non-Business Days
	 	 	52	 
	Section 14.8 Table of Contents, Headings, etc.
	 	 	52	 
	Section 14.9 Execution in Counterparts
	 	 	53	 
	Section 14.10 Separability
	 	 	53	 
	Section 14.11 Assignment
	 	 	53	 
	Section 14.12 Acknowledgment of Rights
	 	 	53	 
	 
	 	 	 	 
	ARTICLE XV
	 	 	 	 
	 
	 	 	 	 
	SUBORDINATION OF DEBENTURES
	 	 	 	 
	 
	 	 	 	 
	Section 15.1 Agreement to Subordinate
	 	 	53	 
	Section 15.2 Default on Senior Indebtedness
	 	 	54	 
	Section 15.3 Liquidation, Dissolution, Bankruptcy
	 	 	54	 
	Section 15.4 Subrogation
	 	 	55	 
	Section 15.5 Trustee to Effectuate Subordination
	 	 	56	 
	Section 15.6 Notice by the Company
	 	 	56	 
	Section 15.7 Rights of the Trustee; holders of Senior Indebtedness
	 	 	57	 
	Section 15.8 Subordination May Not Be Impaired
	 	 	57	 
	 
	 	 	 	 
	Exhibit A            Form of Junior Subordinated Deferrable Interest Debenture
	 	 	 	 







iv









 






     THIS INDENTURE, dated as of July 31, 2001, between Alliance Capital Partners, L.P., a Delaware
limited partnership (the “Company”), and State Street Bank and Trust Company of
Connecticut, National Association, a national banking association organized under the laws of the
United States of America, as debenture trustee (the “Trustee”),



WITNESSETH:




     WHEREAS, for its lawful corporate purposes, the Company has duly authorized the issuance of
its Floating Rate Junior Subordinated Deferrable Interest Debentures due 2031 (the
“Debentures”) under this Indenture to provide, among other things, for the execution and
authentication, delivery and administration thereof, the Company has duly authorized the execution
of this Indenture; and



     WHEREAS, all acts and things necessary to make this Indenture a valid agreement according to
its terms, have been done and performed;



     NOW, THEREFORE, This Indenture Witnesseth:



     In consideration of the premises, and the purchase of the Debentures by the holders thereof,
the Company covenants and agrees with the Trustee for the equal and proportionate benefit of the
respective holders from time to time of the Debentures as follows:



ARTICLE I




DEFINITIONS



     Section 1.1 Definitions. The terms defined in this Section 1.1 (except as herein otherwise expressly
provided or unless the context otherwise requires) for all purposes of this Indenture and of any
indenture supplemental hereto shall have the respective meanings specified in this Section 1.1. All
accounting terms used herein and not expressly defined shall have the meanings assigned to such
terms in accordance with generally accepted accounting principles and the term “generally accepted
accounting principles” means such accounting principles as are generally accepted in the United
States at the time of any computation. 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.



     “Additional Interest” means interest, if any, that shall accrue on any interest on the
Debentures the payment of which has not been made on the applicable Interest Payment Date and which
shall accrue at the Interest Rate, compounded quarterly (to the extent permitted by law).



     “Additional Junior Indebtedness” means, without duplication and other than the
Debentures, any indebtedness, liabilities or obligations of the Company, or any Affiliate of the
Company, under debt securities (or guarantees in respect of debt securities) initially issued to
any trust, or a trustee of a trust, partnership or other entity affiliated with the Company that
is, directly or indirectly, a finance subsidiary (as such term is defined in Rule 3a-5 under the



1









 




Investment Company Act of 1940) or other financing vehicle of the Company or any Affiliate of
the Company in connection with the issuance by that entity of preferred securities or other
securities that are eligible to qualify for Tier 1 capital treatment (or its then equivalent) for
purposes of the capital adequacy guidelines of the Federal Reserve, as then in effect and
applicable to the Company (or, if the Company is not a bank holding company, such guidelines
applied to the Company as if the Company were subject to such guidelines); provided,
however, that the inability of the Company to treat all or any portion of the Additional
junior Indebtedness as Tier 1 capital shall not disqualify it as Additional Junior Indebtedness if
such inability results from the Company having cumulative preferred stock, minority interests in
consolidated subsidiaries, or any other class of security or interest which the Federal Reserve now
or may hereafter accord Tier 1 capital treatment (including the Debentures) in excess of the amount
which may qualify for treatment as Tier 1 capital under applicable capital adequacy guidelines.




     “Additional Sums” has the meaning set forth in Section 3.6.



     “Affiliate” has the same meaning as given to that term in Rule 405 of the Securities
Act or any successor rule thereunder.



     “Authenticating Agent” means any agent or agents of the Trustee which at the time
shall be appointed and acting pursuant to Section 6.12.



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



     “Board of Directors” means the board of directors or the executive committee or any
other duly authorized designated officers of the Company.



     “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 any day other than a Saturday, Sunday or any other day on which
banking institutions in New York City or Hartford, Connecticut are permitted or required by any
applicable law to close.



     “Capital Securities” means undivided beneficial interests in the assets of Alliance
Capital Partners Statutory Trust I which rank pari passu with Common Securities issued by the
Trust; provided, however, that upon the occurrence of an Event of Default (as
defined in the Declaration), the rights of holders of such Common Securities to payment in respect
of distributions and payments upon liquidation, redemption and otherwise are subordinated to the
rights of holders of such Capital Securities.



     “Capital Securities Guarantee” means the guarantee agreement that the Company enters
into with State Street Bank and Trust Company of Connecticut, National Association, as guarantee
trustee, or other Persons that operates directly or indirectly for the benefit of holders of
Capital Securities of the Trust.



2









 





     “Capital Treatment Event” means the receipt by the Company of an opinion of counsel
experienced in such matters that, as a result of the occurrence of any amendment to, or change
(including any announced prospective change) in, the laws of the United States or any political
subdivision thereof or therein, or as the result of any official or administrative pronouncement or
action or decision interpreting or applying such laws, rules or regulations, which amendment or
change is effective or which pronouncement, action or decision is announced on or after the date of
issuance of the Debentures, there is more than an insubstantial risk that the Company will not be
entitled to treat an amount equal to the aggregate Liquidation Amount of the Debentures as “Tier 1
Capital” (or its then equivalent) for purposes of the capital adequacy guidelines of the Federal
Reserve, as then in effect and applicable to the Company (or if the Company is not a bank holding
company, such guidelines applied to the Company as if the Company were subject to such guidelines);
provided, however, that the inability of the Company to treat all or any portion of
the Liquidation Amount of the Debentures as Tier 1 Capital shall not constitute the basis for a
Capital Treatment Event if such inability results from the Company having cumulative preferred
stock, minority interests in consolidated subsidiaries, or any other class of security or interest
which the Federal Reserve or OTS, as applicable, now or may hereafter accord Tier 1 Capital
treatment in excess of the amount which may qualify for treatment as Tier 1 Capital under
applicable capital adequacy guidelines; provided further, however, that the
distribution of Debentures in connection with the dissolution of the Trust shall not in and of
itself constitute a Capital Treatment Event unless such dissolution shall have occurred in
connection with a Tax Event or an Investment Company Event.



     “Certificate” means a certificate signed by any one of the principal executive
officer, the principal financial officer or the principal accounting officer of the Company.



     “Common Securities” means undivided beneficial interests in the assets of the Trust
which rank pari passu with Capital Securities issued by the Trust; provided,
however, that upon the occurrence of an Event of Default (as defined in the Declaration),
the rights of holders of such Common Securities to payment in respect of distributions and payments
upon liquidation, redemption and otherwise are subordinated to the rights of holders of such
Capital Securities.



     “Company” means Alliance Capital Partners, L.P., a Delaware limited partnership, and,
subject to the provisions of Article XI, shall include its successors and assigns.



     “Coupon Rate” has the meaning set forth in Section 2.8.



     “Debenture” or “Debentures” has the meaning stated in the first recital of
this Indenture.



     “Debenture Register” has the meaning specified in Section 2.5.



     “Declaration” means the Amended and Restated Declaration of Trust of the Trust, as
amended or supplemented from time to time.



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



     “Defaulted Interest” has the meaning set forth in Section 2.8. “Distribution Period”
has the meaning set forth in Section 2.8.



3









 





     “Determination Date” has the meaning set forth in Section 2.10.



     “Event of Default” means any event specified in Section 5.1, continued for the period
of time, if any, and after the giving of the notice, if any, therein designated.



     “Extension Period” has the meaning set forth in Section 2.11.



     “Federal Reserve” means the Board of Governors of the Federal Reserve System and any
successor federal agency that is primarily responsible for regulating the activities of bank
holding companies.



     “Indenture” means this instrument as originally executed or, if amended or
supplemented as herein provided, as so amended or supplemented, or both.



     “Institutional Trustee” has the meaning set forth in the Declaration.



     “Interest Payment Date” means each October 31, January 31, April 30 and July 31 during
the term of this Indenture.



     “Interest Rate” means for the period beginning on (and including) the date of original
issuance and ending on (but excluding) October 31, 2001 the rate per annum of 7.29% and for each
Distribution Period thereafter, the Coupon Rate.



     “Investment Company Event” means the receipt by the Company and the Trust of an
opinion of counsel experienced in such matters to the effect that, as a result of the occurrence of
a change in law or regulation or written change (including any announced prospective change) in
interpretation or application of law or regulation by any legislative body, court, governmental
agency or regulatory authority, there is more than an insubstantial risk that the Trust is or will
be considered an “investment company” that is required to be registered under the Investment
Company Act of 1940, as amended which change or prospective change becomes effective or would
become effective, as the case may be, on or after the date of the issuance of the Debentures.



     “Liquidation Amount” means the stated amount of $1,000.00 per Trust Security.



     “Maturity Date” means July 31, 2031.



     “Officers’ Certificate” means a certificate signed by the Chairman of the Board, the
Vice Chairman, the President, any Managing Director or any Vice President, and by the Treasurer, an
Assistant Treasurer, the Comptroller, an Assistant Comptroller, the Secretary or an Assistant
Secretary of the Company, and delivered to the Trustee. Each such certificate shall include the
statements provided for in Section 14.6 if and to the extent required by the provisions of such
Section.



     “Opinion of Counsel” means an opinion in writing signed by legal counsel, who may be
an employee of or counsel to the Company, or may be other counsel reasonably satisfactory to the
Trustee. Each such opinion shall include the statements provided for in Section 14.6 if and to the
extent required by the provisions of such Section.



4









 





     “OTS” means the Office of Thrift Supervision and any successor federal agency that is
primarily responsible for regulating the activities of savings and loan holding companies.



     The term “outstanding,” when used with reference to Debentures, means, subject to the
provisions of Section 7.4, as of any particular time, all Debentures authenticated and delivered by
the Trustee or the Authenticating Agent under this Indenture, except:



     (a) Debentures theretofore canceled by the Trustee or the Authenticating Agent or delivered to
the Trustee for cancellation;



     (b) Debentures, or portions thereof, for the payment or redemption of which moneys in the
necessary amount shall have been deposited in trust with the Trustee or with any paying agent
(other than the Company) or shall have been set aside and segregated in trust by the Company (if
the Company shall act as its own paying agent); provided, however, that, if such
Debentures, or portions thereof, are to be redeemed prior to maturity thereof, notice of such
redemption shall have been given as provided in Section 10.3 or provision satisfactory to the
Trustee shall have been made for giving such notice;



     (c) Debentures paid pursuant to Section 2.6 or in lieu of or in substitution for which other
Debentures shall have been authenticated and delivered pursuant to the terms of Section 2.6 unless
proof satisfactory to the Company and the Trustee is presented that any such Debentures are held by
bona fide holders in due course; and



     (d) Debentures held in accordance with Section 7.4 hereof.



     “Ownership Interests” means, so long as the Company is a limited partnership, the
partnership interests of the Company’s general and limited partners or, if the Company (or its
successor) is a corporation, the Company’s capital stock.



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



     “Predecessor Security” of any particular Debenture means every previous Debenture
evidencing all or a portion of the same debt as that evidenced by such particular Debenture; and,
for the purposes of this definition, any Debenture authenticated and delivered under Section 2.6 in
lieu of a lost, destroyed or stolen Debenture shall be deemed to evidence the same debt as the
lost, destroyed or stolen Debenture.



     “Principal Office of the Trustee,” or other similar term, means the office of the
Trustee, at which at any particular time its corporate trust business shall be principally
administered, which at the time of the execution of this Indenture shall be 225 Asylum Street,
Goodwin Square, Hartford, Connecticut 06103.



     “Redemption Date” has the meaning set forth in Section 10.1.



5









 





     “Redemption Price” means the price set forth in the following table for any Redemption
Date that occurs within the twelve-month period beginning in the relevant year indicated below,
expressed as the percentage of the principal amount of the Debentures being redeemed:



	 	 	 	 	 
	Year Beginning	 	Percentage
	July 31, 2006
	 	 	107.5	%
	 
	 	 	 	 
	July 31, 2007
	 	 	106.0	%
	 
	 	 	 	 
	July 31, 2008
	 	 	104.5	%
	 
	 	 	 	 
	July 31, 2009
	 	 	103.0	%
	 
	 	 	 	 
	July 31, 2010
	 	 	101.5	%
	 
	 	 	 	 
	July 31, 2011 and after
	 	 	100	%






     plus accrued and unpaid interest on such Debentures to the Redemption Date.



     “Responsible Officer” means, with respect to the Trustee, any officer within the
Principal Office of the Trustee, including any vice-president, any assistant vice-president, any
secretary, any assistant secretary, the treasurer, any assistant treasurer, any trust officer or
other officer of the Principal Trust Office of the Trustee customarily 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
that officer’s knowledge of and familiarity with the particular subject.



     “Securities Act” means the Securities Act of 1933, as amended from time to time or any
successor legislation.



     “Securityholder,” “holder of Debentures,” or other similar terms, means any Person in
whose name at the time a particular Debenture is registered on the register kept by the Company or
the Trustee for that purpose in accordance with the terms hereof.



     “Senior Indebtedness” means, with respect to the Company, (i) the principal, premium,
if any, and interest in respect of (A) indebtedness of the Company for money borrowed and (B)
indebtedness evidenced by securities, debentures, notes, bonds or other similar instruments issued
by the Company; (ii) all capital lease obligations of the Company; (iii) all obligations of the
Company issued or assumed as the deferred purchase price of property, all conditional sale
obligations of the Company and all obligations of the Company under any title retention



6









 




agreement; (iv) all obligations of the Company for the reimbursement of any letter of credit,
any banker’s acceptance, any security purchase facility, any repurchase agreement or similar
arrangement, any interest rate swap, any other hedging arrangement, any obligation under options or
any similar credit or other transaction; (v) all obligations of the type referred to in clauses (i)
through (iv) above of other Persons for the payment of which the Company is responsible or liable
as obligor, guarantor or otherwise; and (vi) all obligations of the type referred to in clauses (i)
through (v) above of other Persons secured by any lien on any property or asset of the Company
(whether or not such obligation is assumed by the Company), whether incurred on or prior to the
date of this Indenture or thereafter incurred. Notwithstanding the foregoing, “Senior Indebtedness”
shall not include (1) any Additional Junior Indebtedness, (2) Debentures issued pursuant to this
Indenture and guarantees in respect of such Debentures, (3) trade accounts payable of the Company
arising in the ordinary course of business (such trade accounts payable being pari passu in right
of payment to the Debentures), or (4) obligations with respect to which (a) in the instrument
creating or evidencing the same or pursuant to which the same is outstanding, it is provided that
such obligations are pari passu, junior or otherwise not superior in right of payment to the
Debentures and (b) the Company, prior to the issuance thereof, has notified (and, if then required
under the applicable guidelines of the regulating entity, has received approval from) the Federal
Reserve (if the Company is a bank holding company) or the OTS (if the Company is a savings and
loan holding company). Senior Indebtedness shall continue to be Senior Indebtedness and be entitled
to the subordination provisions irrespective of any amendment, modification or waiver of any term
of such Senior Indebtedness.




     “Special Event” means any of a Capital Treatment Event, an Investment Company Event or
a Tax Event.



     “Special Redemption Date” has the meaning set forth in Section 10.2.



     “Special Redemption Price” means (i) if the Special Redemption Date is before July 31,
2006, an amount in cash equal to 107.5% of the principal amount of the Debentures to be prepaid,
plus accrued and unpaid interest on such Debentures to such Special Redemption Date, or (ii) if the
Special Redemption Date is on or after July 31, 2006, the price for the Debentures set forth in the
table under the definition of “Redemption Price” for such Special Redemption Date, plus accrued and
unpaid interest on such Debentures to such Special Redemption Date.



     “Subsidiary” means with respect to any Person, (i) any corporation at least a majority
of the outstanding voting stock of which is owned, directly or indirectly, by such Person or by one
or more of its Subsidiaries, or by such Person and one or more of its Subsidiaries, (ii) any
general partnership, joint venture or similar entity, at least a majority of the outstanding
partnership or similar interests of which shall at the time be owned by such Person, or by one or
more of its Subsidiaries, or by such Person and one or more of its Subsidiaries and (iii) any
limited partnership of which such Person or any of its Subsidiaries is a general partner. For the
purposes of this definition, “voting stock” means shares, interests, participations or other
equivalents in the equity interest (however designated) in such Person having ordinary voting power
for the election of a majority of the directors (or the equivalent) of such Person, other than
shares, interests, participations or other equivalents having such power only by reason of the
occurrence of a contingency.



7









 





     “Tax Event” means the receipt by the Company and the Trust of an opinion of counsel
experienced in such matters to the effect that, as a result of any amendment to or change
(including any announced prospective change) in the laws or any regulations thereunder of the
United States or any political subdivision or taxing authority thereof or therein, or as a result
of any official administrative pronouncement (including any private letter ruling, technical advice
memorandum, field service advice, regulatory procedure, notice or announcement, including any
notice or announcement of intent to adopt such procedures or regulations (an “Administrative
Action”)) or judicial decision interpreting or applying such laws or regulations, regardless of
whether such Administrative Action or judicial decision is issued to or in connection with a
proceeding involving the Company or the Trust and whether or not subject to review or appeal, which
amendment, clarification, change, Administrative Action or decision is enacted, promulgated or
announced, in each case on or after the date of issuance of the Debentures, there is more than an
insubstantial risk that: (i) the Trust is, or will be within 90 days of the date of such opinion,
subject to United States federal income tax with respect to income received or accrued on the
Debentures; (ii) interest payable by the Company on the Debentures is not, or within 90 days of the
date of such opinion, will not be, deductible by the Company, in whole or in part, for United
States federal income tax purposes; or (iii) the Trust is, or will be within 90 days of the date of
such opinion, subject to more than a de minimis amount of other taxes, duties or other governmental
charges.



     “3-Month LIBOR” has the meaning set forth in Section 2.10.



     “Telerate Page 3750” has the meaning set forth in Section 2.10.



     “Trust” shall mean Alliance Capital Partners Statutory Trust I, a Connecticut
statutory trust, or any other similar trust created for the purpose of issuing Capital Securities
in connection with the issuance of Debentures under this Indenture, of which the Company is the
sponsor.



     “Trust Securities” means Common Securities and Capital Securities of the Trust.



     “Trustee” means State Street Bank and Trust Company of Connecticut, National
Association, and, subject to the provisions of Article VI hereof, shall also include its successors
and assigns as Trustee hereunder.



ARTICLE II




DEBENTURES


     Section 2.1 Authentication and Dating. Upon the execution and delivery of this Indenture, or from time
to time thereafter, Debentures in an aggregate principal amount not in excess of $15,464,000 may be
executed and delivered by the Company to the Trustee for authentication, and the Trustee shall
thereupon authenticate and make available for delivery said Debentures to or upon the written order
of the Company, signed by its Chairman of the Board of Directors, Vice Chairman, the President, one
of its Managing Directors or one of its Vice Presidents without any further action by the Company
hereunder. In authenticating such Debentures, and accepting the additional responsibilities under
this Indenture in relation to such Debentures, the Trustee shall be entitled to receive, and (subject to Section 6.1) shall be fully
protected in relying upon:




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     (a) a copy of any Board Resolution or Board Resolutions relating thereto and, if applicable,
an appropriate record of any action taken pursuant to such resolution, in each case certified by
the Secretary or an Assistant Secretary of the Company, as the case may be; and



     (b) an Opinion of Counsel prepared in accordance with Section 14.6 which shall also state:




     (1) that such Debentures, when authenticated and delivered by the Trustee and
issued by the Company in each case in the manner and subject to any conditions
specified in such Opinion of Counsel, will constitute valid and legally binding
obligations of the Company, subject to or limited by applicable bankruptcy,
insolvency, reorganization, conservatorship, receivership, moratorium and other
statutory or decisional laws relating to or affecting creditors’ rights or the
reorganization of financial institutions (including, without limitation, preference
and fraudulent conveyance or transfer laws), heretofore or hereafter enacted or in
effect, affecting the rights of creditors generally; and




     (2) that all laws and requirements in respect of the execution and delivery by
the Company of the Debentures have been complied with and that authentication and
delivery of the Debentures by the Trustee will not violate the terms of this
Indenture.



     The Trustee shall have the right to decline to authenticate and deliver any Debentures under
this Section if the Trustee, being advised in writing by counsel, determines that such action may
not lawfully be taken or if a Responsible Officer of the Trustee in good faith shall determine that
such action would expose the Trustee to personal liability to existing holders.



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



     Section 2.2 Form of Trustee’s Certificate of Authentication. The Trustee’s certificate of
authentication on all Debentures shall be in substantially the following form:



     This is one of the Debentures referred to in the within-mentioned Indenture.



     State Street Bank and Trust Company of Connecticut, National Association, as Trustee



     By____________________________



          Authorized Signer




     Section 2.3 Form and Denomination of Debentures. The Debentures shall be in registered, certificated
form without coupons and in minimum denominations of $500,000.00 and any multiple of $1,000.00 in
excess thereof. Any attempted transfer of the Debentures in a block having an aggregate principal
amount of less than $500,000.00 shall be deemed to be
voided and of no legal effect whatsoever. Any such purported transferee shall be deemed not to be a
holder of such Debentures for any purpose, including, but not limited to the receipt of payments on
such Debentures, and such purported transferee shall be deemed to have no interest



9









 







whatsoever in
such Debentures. The Debentures shall be numbered, lettered, or otherwise distinguished in such
manner or in accordance with such plans as the officers executing the same may determine with the
approval of the Trustee as evidenced by the execution and authentication thereof.



     Section 2.4 Execution of Debentures. The Debentures shall be signed in the name and on behalf of the
Company by the manual or facsimile signature of its Chairman of the Board of Directors, Vice
Chairman, President, one of its Managing Directors or one of its Executive Vice Presidents, Senior
Vice Presidents or Vice Presidents. Only such Debentures as shall bear thereon a certificate of
authentication substantially in the form herein before recited, executed by the Trustee or the
Authenticating Agent by the manual signature of an authorized signer, shall be entitled to the
benefits of this Indenture or be valid or obligatory for any purpose. Such certificate by the
Trustee or the Authenticating Agent upon any Debenture executed by the Company shall be conclusive
evidence that the Debenture so authenticated has been duly authenticated and delivered hereunder
and that the holder is entitled to the benefits of this Indenture.



     In case any officer of the Company who shall have signed any of the Debentures shall cease to
be such officer before the Debentures so signed shall have been authenticated and delivered by the
Trustee or the Authenticating Agent, or disposed of by the Company, such Debentures nevertheless
may be authenticated and delivered or disposed of as though the Person who signed such Debentures
had not ceased to be such officer of the Company; and any Debenture may be signed on behalf of the
Company by such Persons as, at the actual date of the execution of such Debenture, shall be the
proper officers of the Company, although at the date of the execution of this Indenture any such
person was not such an officer.



     Every Debenture shall be dated the date of its authentication.



     Section 2.5 Exchange and Registration of Transfer of Debentures. The Company shall cause to be kept, at
the office or agency maintained for the purpose of registration of transfer and for exchange as
provided in Section 3.2, a register (the “Debenture Register”) for the Debentures issued
hereunder in which, subject to such reasonable regulations as it may prescribe, the Company shall
provide for the registration and transfer of all Debentures as in this Article II provided. The
Debenture Register shall be in written form or in any other form capable of being converted into
written form within a reasonable time.



     Debentures to be exchanged may be surrendered at the principal corporate trust office of the
Trustee or at any office or agency to be maintained by the Company for such purpose as provided in
Section 3.2, and the Company shall execute, the Company or the Trustee shall register and the
Trustee or the Authenticating Agent shall authenticate and make available for delivery in exchange
therefor the Debenture or Debentures which the Securityholder making the exchange shall be entitled
to receive. Upon due presentment for registration of transfer of any
Debenture at the principal corporate trust office of the Trustee or at any office or agency of the Company maintained for such
purpose as provided in Section 3.2, the Company shall execute, the Company or the Trustee shall register and the Trustee or the Authenticating Agent shall
authenticate and make available for delivery in the name of the transferee or transferees a new
Debenture for a like aggregate principal amount. Registration or registration of transfer of any



10









 







Debenture by the Trustee or by any agent of the Company appointed pursuant to Section 3.2, and
delivery of such Debenture, shall be deemed to complete the registration or registration of
transfer of such Debenture.



     All Debentures presented for registration of transfer or for exchange or payment shall (if so
required by the Company or the Trustee or the Authenticating Agent) be duly endorsed by, or be
accompanied by a written instrument or instruments of transfer in form satisfactory to the Company
and the Trustee or the Authenticating Agent duly executed by the holder or his attorney duly
authorized in writing.



     No service charge shall be made for any exchange or registration of transfer of Debentures,
but the Company or the Trustee may require payment of a sum sufficient to cover any tax, fee or
other governmental charge that may be imposed in connection therewith.



     The Company or the Trustee shall not be required to exchange or register a transfer of any
Debenture for a period of 15 days next preceding the date of selection of Debentures for
redemption.



     Notwithstanding anything herein to the contrary, Debentures may not be transferred except in
compliance with the restricted securities legend set forth below, unless otherwise determined by
the Company, upon the advice of counsel expert in securities law, in accordance with applicable
law:



     THIS SECURITY HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE
“SECURITIES ACT”), ANY STATE SECURITIES LAWS OR ANY OTHER APPLICABLE SECURITIES LAW. NEITHER THIS
SECURITY NOR ANY INTEREST OR PARTICIPATION HEREIN MAY BE REOFFERED, SOLD, ASSIGNED, TRANSFERRED,
PLEDGED, ENCUMBERED OR OTHERWISE DISPOSED OF IN THE ABSENCE OF SUCH REGISTRATION OR UNLESS SUCH
TRANSACTION IS EXEMPT FROM, OR NOT SUBJECT TO, THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT
AND ANY APPLICABLE STATE SECURITIES LAWS. THE HOLDER OF THIS SECURITY BY ITS ACCEPTANCE HEREOF
AGREES TO OFFER, SELL OR OTHERWISE TRANSFER THIS SECURITY ONLY (A) TO THE COMPANY, (B) PURSUANT TO
A REGISTRATION STATEMENT THAT HAS BEEN DECLARED EFFECTIVE UNDER THE SECURITIES ACT, (C) TO A PERSON
WHOM THE SELLER REASONABLY BELIEVES IS A QUALIFIED INSTITUTIONAL BUYER IN A TRANSACTION MEETING THE
REQUIREMENTS OF RULE 144A SO LONG AS THIS SECURITY IS ELIGIBLE FOR RESALE PURSUANT TO RULE 144A IN
ACCORDANCE WITH RULE 144A, (D) TO A NON-U.S. PERSON IN AN OFFSHORE TRANSACTION IN ACCORDANCE WITH
RULE 903 OR RULE 904 (AS APPLICABLE) OF REGULATION S UNDER THE SECURITIES ACT, (E) TO AN
INSTITUTIONAL “ACCREDITED INVESTOR” WITHIN THE MEANING OF SUBPARAGRAPH (A) OF RULE 501 UNDER THE
SECURITIES ACT THAT IS ACQUIRING THIS SECURITY FOR ITS OWN ACCOUNT, OR FOR THE ACCOUNT OF SUCH AN
INSTITUTIONAL ACCREDITED
INVESTOR, FOR INVESTMENT PURPOSES AND NOT WITH A VIEW TO, OR FOR OFFER OR SALE IN CONNECTION
WITH, ANY DISTRIBUTION IN VIOLATION OF THE SECURITIES ACT, OR (F) PURSUANT TO ANY OTHER AVAILABLE
EXEMPTION



11









 







FROM THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT, SUBJECT TO THE COMPANY’S RIGHT
PRIOR TO ANY SUCH OFFER, SALE OR TRANSFER TO REQUIRE THE DELIVERY OF AN OPINION OF COUNSEL,
CERTIFICATION AND/OR OTHER INFORMATION SATISFACTORY TO EACH OF THEM IN ACCORDANCE WITH THE
INDENTURE, A COPY OF WHICH MAY BE OBTAINED FROM THE COMPANY.



     THE HOLDER OF THIS SECURITY BY ITS ACCEPTANCE HEREOF ALSO AGREES, REPRESENTS AND WARRANTS THAT
IT IS NOT AN EMPLOYEE BENEFIT, INDIVIDUAL RETIREMENT ACCOUNT OR OTHER PLAN OR ARRANGEMENT SUBJECT
TO TITLE I OF THE EMPLOYMENT RETIREMENT INCOME SECURITY ACT OF 1974, AS AMENDED (“ERISA”), OR
SECTION 4975 OF THE INTERNAL REVENUE CODE OF 1986, AS AMENDED (THE “CODE”) (EACH A “PLAN”), OR AN
ENTITY WHOSE UNDERLYING ASSETS INCLUDE “PLAN ASSETS” BY REASON OF ANY PLAN’S INVESTMENT IN THE
ENTITY, AND NO PERSON INVESTING “PLAN ASSETS” OF ANY PLAN MAY ACQUIRE OR HOLD THE SECURITIES OR ANY
INTEREST THEREIN, UNLESS SUCH PURCHASER OR HOLDER IS ELIGIBLE FOR EXEMPTIVE RELIEF AVAILABLE UNDER
U.S. DEPARTMENT OF LABOR PROHIBITED TRANSACTION CLASS EXEMPTION 96-23, 95-60, 91-38, 90-1 OR 84-14
OR ANOTHER APPLICABLE EXEMPTION OR ITS PURCHASE AND HOLDING OF THIS SECURITY IS NOT PROHIBITED BY
SECTION 406 OF ERISA OR SECTION 4975 OF THE CODE WITH RESPECT TO SUCH PURCHASE OR HOLDING. ANY
PURCHASER OR HOLDER OF THE SECURITIES OR ANY INTEREST THEREIN WILL BE DEEMED TO HAVE REPRESENTED BY
ITS PURCHASE AND HOLDING THEREOF THAT EITHER (i) IT IS NOT AN EMPLOYEE BENEFIT PLAN WITHIN THE
MEANING OF SECTION 3(3) OF ERISA, OR A PLAN TO WHICH SECTION 4975 OF THE CODE IS APPLICABLE, A
TRUSTEE OR OTHER PERSON ACTING ON BEHALF OF AN EMPLOYEE BENEFIT PLAN OR PLAN, OR ANY OTHER PERSON
OR ENTITY USING THE ASSETS OF ANY EMPLOYEE BENEFIT PLAN OR PLAN TO FINANCE SUCH PURCHASE, OR (ii)
SUCH PURCHASE WILL NOT RESULT IN A PROHIBITED TRANSACTION UNDER SECTION 406 OR ERISA OR SECTION
4975 OF THE CODE FOR WHICH THERE IS NO APPLICABLE STATUTORY OR ADMINISTRATIVE EXEMPTION.



     THIS SECURITY WILL BE ISSUED AND MAY BE TRANSFERRED ONLY IN BLOCKS HAVING AN AGGREGATE
PRINCIPAL AMOUNT OF NOT LESS THAN $500,000.00 AND MULTIPLES OF $1,000.00 IN EXCESS THEREOF. ANY
ATTEMPTED TRANSFER OF THIS SECURITY IN A BLOCK HAVING AN AGGREGATE PRINCIPAL AMOUNT OF LESS THAN
$500,000.00 SHALL BE DEEMED TO BE VOID AND OF NO LEGAL EFFECT WHATSOEVER.



     THE HOLDER OF THIS SECURITY AGREES THAT IT WILL COMPLY WITH THE FOREGOING RESTRICTIONS.



     Section 2.6 Mutilated, Destroyed, Lost or Stolen Debentures. In case any Debenture shall become
mutilated or be destroyed, lost or stolen, the Company shall execute, and upon its written request
the Trustee shall authenticate and deliver, a new Debenture bearing a number not contemporaneously
outstanding, in exchange and substitution for the mutilated



12









 







Debenture, or in lieu of and in
substitution for the Debenture so destroyed, lost or stolen. In every case the applicant for a
substituted Debenture shall furnish to the Company and the Trustee such security or indemnity as
may be required by them to save each of them harmless, and, in every case of destruction, loss or
theft, the applicant shall also furnish to the Company and the Trustee evidence to their
satisfaction of the destruction, loss or theft of such Debenture and of the ownership thereof.



     The Trustee may authenticate any such substituted Debenture and deliver the same upon the
written request or authorization of any officer of the Company. Upon the issuance of any
substituted Debenture, 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 connected
therewith. In case any Debenture which has matured or is about to mature or has been called for
redemption in full shall become mutilated or be destroyed, lost or stolen, the Company may, instead
of issuing a substitute Debenture, pay or authorize the payment of the same (without surrender
thereof except in the case of a mutilated Debenture) if the applicant for such payment shall
furnish to the Company and the Trustee such security or indemnity as may be required by them to
save each of them harmless and, in case of destruction, loss or theft, evidence satisfactory to the
Company and to the Trustee of the destruction, loss or theft of such Debenture and of the ownership
thereof.



     Every substituted Debenture issued pursuant to the provisions of this Section 2.6 by virtue of
the fact that any such Debenture is destroyed, lost or stolen shall constitute an additional
contractual obligation of the Company, whether or not the destroyed, lost or stolen Debenture shall
be found at any time, and shall be entitled to all the benefits of this Indenture equally and
proportionately with any and all other Debentures duly issued hereunder. All Debentures shall be
held and owned upon the express condition that, to the extent permitted by applicable law, the
foregoing provisions are exclusive with respect to the replacement or payment of mutilated,
destroyed, lost or stolen Debentures and shall preclude any and all other rights or remedies
notwithstanding any law or statute existing or hereafter enacted to the contrary with respect to
the replacement or payment of negotiable instruments or other securities without their surrender.



     Section 2.7 Temporary Debentures. Pending the preparation of definitive Debentures, the Company may
execute and the Trustee shall authenticate and make available for delivery temporary Debentures
that are typed, printed or lithographed. Temporary Debentures shall be issuable in any authorized
denomination, and substantially in the form of the definitive Debentures in lieu of which they are
issued but with such omissions, insertions and variations as may be appropriate for temporary
Debentures, all as may be determined by the Company. Every such temporary Debenture shall be
executed by the Company and be authenticated by the Trustee upon the same conditions and in
substantially the same manner, and with the same effect, as the definitive Debentures. Without
unreasonable delay the Company will execute and deliver to the Trustee or the Authenticating Agent
definitive Debentures and thereupon any or all temporary Debentures may be surrendered in exchange
therefor, at the principal corporate trust
office of the Trustee or at any office or agency maintained by the Company for such purpose as
provided in Section 3.2, and the Trustee or the Authenticating Agent shall authenticate and make
available for delivery in exchange for such temporary Debentures a like aggregate principal amount
of such definitive Debentures. Such exchange shall be made by the Company at its own



13









 







expense and
without any charge therefor except that in case of any such exchange involving a registration of
transfer the Company may require payment of a sum sufficient to cover any tax, fee or other
governmental charge that may be imposed in relation thereto. Until so exchanged, the temporary
Debentures shall in all respects be entitled to the same benefits under this Indenture as
definitive Debentures authenticated and delivered hereunder.



     Section 2.8 Payment of interest and Additional Interest. Interest at the Interest Rate and any
Additional Interest on any Debenture that is payable, and is punctually paid or duly provided for,
on any Interest Payment Date for Debentures shall be paid to the Person in whose name said
Debenture (or one or more Predecessor Securities) is registered at the close of business on the
regular record date for such interest installment except that interest and any Additional Interest
payable on the Maturity Date shall be paid to the Person to whom principal is paid. In the event
that any Debenture or portion thereof is called for redemption and the redemption date is
subsequent to a regular record date with respect to any Interest Payment Date and prior to such
Interest Payment Date, interest on such Debenture will be paid upon presentation and surrender of
such Debenture.



     Each Debenture shall bear interest for the period beginning on (and including) the date of
original issuance and ending on (but excluding) October 31, 2001 at a rate per annum of 7.29%, and
shall bear interest for each successive period beginning on (and including) October 31, 2001, and
each succeeding Interest Payment Date, and ending on (but excluding) the next succeeding Interest
Payment Date (each, a “Distribution Period”) at a rate per annum equal to the 3-Month
LIBOR, determined as described in Section 2.10, plus 3.58%; provided, however, that
prior to July 31, 2011, such annual rate shall not exceed 12.50% (the “Coupon Rate”)
applied to the principal amount thereof, until the principal thereof becomes due and payable, and
on any overdue principal and to the extent that payment of such interest is enforceable under
applicable law (without duplication) on any overdue installment of interest at the Interest Rate
compounded quarterly. Interest shall be payable (subject to any relevant Extension Period)
quarterly in arrears on each Interest Payment Date with the first installment of interest to be
paid on October 31, 2001.



     Any interest on any Debenture, other than Additional Interest, that 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 registered holder on the relevant regular
record date by virtue of having been such holder; and such Defaulted Interest shall be paid by the
Company to the Persons in whose names such Debentures (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 at least 25 days prior to the date of the proposed payment of the amount of Defaulted
Interest proposed to be paid on each such Debenture and the date of the proposed payment, and at
the same time the Company shall deposit with the Trustee an amount of money equal to the aggregate
amount proposed to be paid in respect of such Defaulted Interest or shall make arrangements
satisfactory to the Trustee for such deposit prior to the date of the proposed
payment, such money when deposited to be held in trust for the benefit of the Persons entitled
to such Defaulted Interest as in this clause provided. Thereupon the Trustee shall fix a special
record date for the payment of such Defaulted Interest which shall not be more than 15 nor less
than 10 days prior to the date of the proposed payment and not less than 10 days after the receipt



14









 







by the Trustee of the notice of the proposed payment. The Trustee shall promptly notify the Company
of such special record date and, in the name and at the expense of the Company, shall cause notice
of the proposed payment of such Defaulted Interest and the special record date therefor to be
mailed, first class postage prepaid, to each Securityholder at its address as it appears in the
Debenture Register, not less than 10 days prior to such special record date. Notice of the proposed
payment of such Defaulted Interest and the special record date therefor having been mailed as
aforesaid, such Defaulted Interest shall be paid to the Persons in whose names such Debentures (or
their respective Predecessor Securities) are registered on such special record date and shall be no
longer payable.



     The Company may make payment of any Defaulted Interest on any Debentures in any other lawful
manner after notice given by the Company to the Trustee of the proposed payment method;
provided, however, the Trustee in its sole discretion deems such payment method to
be practical.



     Any interest scheduled to become payable on an Interest Payment Date occurring during an
Extension Period shall not be Defaulted Interest and shall be payable on such other date as may be
specified in the terms of such Debentures.



     The term “regular record date” as used in this Section shall mean the close of business on the
15th day next preceding the applicable Interest Payment Date.



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



     Section 2.9 Cancellation of Debentures Paid, etc. All Debentures surrendered for the purpose of
payment, redemption, exchange or registration of transfer, shall, if surrendered to the Company or
any paying agent, be surrendered to the Trustee and promptly canceled by it, or, if surrendered to
the Trustee or any Authenticating Agent, shall be promptly canceled by it, and no Debentures shall
be issued in lieu thereof except as expressly permitted by any of the provisions of this Indenture.
All Debentures canceled by any Authenticating Agent shall be delivered to the Trustee. The Trustee
shall destroy all canceled Debentures unless the Company otherwise directs the Trustee in writing.
If the Company shall acquire any of the Debentures, however, such acquisition shall not operate as
a redemption or satisfaction of the indebtedness represented by such Debentures unless and until
the same are surrendered to the Trustee for cancellation.



     Section 2.10 Computation of Interest Rate. The amount of interest payable for any period shall be
computed on the basis of actual number of days in the Distribution Period concerned divided by 360.
In the event that any date on which interest is payable on the Debentures is not a Business Day,
then payment of interest payable on such date shall be made on the next succeeding day which is a
Business Day (and without any interest or other payment
in respect of any such delay), except that, if such Business Day is in the next succeeding calendar
year, such payment shall be made on the immediately preceding Business Day, in each case with the
same force and effect as if made on the date such payment was originally payable. The amount of
interest payable for the Distribution Period commencing on October 31, 2001 and



15









 







each succeeding
Distribution Period will be calculated by applying the Interest Rate to the principal amount
outstanding at the commencement of the Distribution Period and multiplying each such amount by the
actual number of days in the Distribution Period concerned divided by 360. All percentages
resulting from any calculations on the Debentures will be rounded, if necessary, to the nearest one
hundred-thousandth of a percentage point, with five one-millionths of a percentage point rounded
upward (e.g., 9.876545% or .09876545) being rounded to 9.87655% (or .0987655), and all dollar
amounts used in or resulting from such calculation will be rounded to the nearest cent (with
one-half cent being rounded upward).



     (a) “3-Month LIBOR” means the London interbank offered rate for three-month,
Eurodollar deposits determined by the Trustee in the following order of priority:




     (1) the rate (expressed as a percentage per annum) for Eurodollar deposits
having a three-month maturity that appears on Telerate Page 3750 as of 11:00 a.m.
(London time) on the particular Determination Date (as defined below). “Telerate
Page 3750” means the display designated as “Page 3750” on the Dow Jones Telerate
Service or such other page as may replace Page 3750 on that service or such other
service or services as may be nominated by the British Bankers’ Association as the
information vendor for the purpose of displaying London interbank offered rates for
U.S. dollars deposits;




     (2) if such rate does not appear on Telerate Page 3750 as of 11:00 a.m. (London
time) on the Determination Date, 3-Month LIBOR will be the arithmetic mean of the
rates (expressed as percentages per annum) for Eurodollar deposits having a
three-month maturity that appear on Reuters Monitor Money Rates Page LIBO
(“Reuters Page LIBO”) as of 11:00 a.m. (London time) on such Determination
Date;




     (3) if such rate does not appear on Reuters Page LIBO as of 11:00 a.m. (London
time) on the related Determination Date, the Trustee will request the principal
London offices of four leading banks in the London interbank market to provide such
banks’ offered quotations (expressed as percentages per annum) to prime banks in the
London interbank market for Eurodollar deposits having a three-month maturity as of
11:00 a.m. (London time) on such Determination Date. If at least two quotations are
provided, 3-Month LIBOR will be the arithmetic mean of such quotations;




     (4) if fewer than two such quotations are provided as requested in clause (3)
above, the Trustee will request four major New York City banks to provide such
banks’ offered quotations (expressed as percentages per annum) to leading European
banks for loans in Eurodollars as of 11:00 a.m. (London time) on such Determination
Date. If at least two such quotations are provided, 3-Month LIBOR will be the
arithmetic mean of such quotations; and




     (5) if fewer than two such quotations are provided as requested in clause (4)
above, 3-Month LIBOR will be a 3-Month LIBOR determined with respect to the
Distribution Period immediately preceding such current Distribution



16









 







Period. If the
rate for Eurodollar deposits having a three-month maturity that initially appears on
telerate Page 3750 or Reuters Page LIBO, as the case may be, as of 11:00 a.m.
(London time) on the related Determination Date is superseded on the Telerate page
3750 or Reuters Page LIBO, as the case may be, by a corrected rate by 12:00 noon
(London time) on such Determination Date, then the corrected rate as so substituted
on the applicable page will be the applicable 3-Month LIBOR for such Determination
Date.




     (6) The Coupon Rate for any Distribution Period will at no time be higher than
the maximum rate then permitted by New York law as the same may be modified by
United States law.




     (7) “Determination Date” means the date that is two London Banking Days
(i.e., a day in which dealings in deposits in U.S. dollars are transacted in the
London interbank market) preceding the particular Distribution Period for which a
Coupon Rate is being determined.



     (b) The Trustee shall notify the Company, the Institutional Trustee and any securities
exchange or interdealer quotation system on which the Capital Securities are listed, of the Coupon
Rate and the Determination Date for each Distribution Period, in each case as soon as practicable
after the determination thereof but in no event later than the seventh (7th) Business Day of the
relevant Distribution Period. Failure to notify the Company, the Institutional Trustee or any
securities exchange or interdealer quotation system, or any defect in said notice, shall not affect
the obligation of the Company to make payment on the Debentures at the applicable Coupon Rate. Any
error in the calculation of the Coupon Rate by the Institutional Trustee may be corrected at any
time by notice delivered as above provided. Upon the request of a holder of a Debenture, the
Trustee shall provide the Coupon Rate then in effect and, if determined, the Coupon Rate for the
next Distribution Period.



     (c) Subject to the corrective rights set forth above, all certificates, communications,
opinions, determinations, calculations, quotations and decisions given, expressed, made or obtained
for the purposes of the provisions relating to the payment and calculation of interest on the
Debentures and distributions on the Capital Securities by the Trustee or the Institutional Trustee
will (in the absence of willful default, bad faith and manifest error) be final, conclusive and
binding on the Trust, the Company and all of the holders of the Debentures and the Capital
Securities, and no liability shall (in the absence of willful default, bad faith or manifest error)
attach to the Trustee or the Institutional Trustee in connection with the exercise or non-exercise
by either of them or their respective powers, duties and discretion.



     Section 2.11 Extension of Interest Payment Period. So long as no Event of Default has occurred and is
continuing, the Company shall have the right, from time to time, and without causing an Event of
Default, to defer payments of interest on the Debentures by extending the interest payment period
on the Debentures at any time and from time to time during the term of the Debentures, for up to 20
consecutive quarterly periods (each such extended interest payment
period, an “Extension Period”), during which Extension Period no interest shall be due and
payable. No Extension Period may end on a date other than an Interest Payment Date. At the end of
any such Extension Period the Company shall pay all interest then accrued and unpaid on the



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Debentures (together with Additional Interest thereon); provided, however, that no
Extension Period may extend beyond the Maturity Date; provided further,
however, that during any such Extension Period, the Company shall not and shall not permit
any Affiliate to (i) declare or pay any dividends or distributions on, or redeem, purchase,
acquire, or make a liquidation payment with respect to, any of the Company’s Ownership Interests or
such Affiliate’s capital stock (other than payments of dividends or distributions to the Company)
or make any guarantee payments with respect to the foregoing or (ii) make any payment of principal
of or interest or premium, if any, on or repay, repurchase or redeem any debt securities of the
Company or any Affiliate that rank pari passu in all respects with or junior in interest to the
Debentures (other than, with respect to clauses (i) or (ii) above, (a) repurchases, redemptions or
other acquisitions of shares of Ownership Interests of the Company in connection with any
employment contract, benefit plan or other similar arrangement with or for the benefit of one or
more employees, officers, directors or consultants, in connection with a dividend or distribution
reinvestment or Ownership Interest purchase plan or in connection with the issuance of Ownership
Interests of the Company (or securities convertible into or exercisable for such Ownership
Interests) as consideration in an acquisition transaction entered into prior to the applicable
Extension Period, (b) as a result of any exchange or conversion of any class or series of the
Company’s Ownership Interests (or any capital stock of a subsidiary of the Company) for any class
or series of the Company’s Ownership Interests or of any class or series of the Company’s
indebtedness for any class or series of the Company’s Ownership Interests, (c) the purchase of
fractional interests in shares or units of the Company’s Ownership Interests pursuant to the
conversion or exchange provisions of such Ownership Interest or the security being converted or
exchanged, (d) any declaration of a dividend or distribution in connection with any Ownership
Interest holder’s rights plan, or the issuance of rights, Ownership Interests or other property
under any Ownership Interest holder’s rights plan, or the redemption or repurchase of rights
pursuant thereto, (e) any dividend or distribution in the form of Ownership Interests, warrants,
options or other rights where the dividend Ownership Interest or the Ownership Interests issuable
upon exercise of such warrants, options or other rights is the same Ownership Interest as that on
which the dividend or distribution is being paid or ranks pari passu with or junior to such
Ownership interest and any cash payments in lieu of fractional shares or units issued in connection
therewith, or (f) payments under the Capital Securities Guarantee). Prior to the termination of any
Extension Period, the Company may further extend such period, provided that such period together
with all such previous and further consecutive extensions thereof shall not exceed 20 consecutive
quarterly periods, or extend beyond the Maturity Date. Upon the termination of any Extension Period
and upon the payment of all accrued and unpaid interest and Additional Interest, the Company may
commence a new Extension Period, subject to the foregoing requirements. No interest or Additional
Interest shall be due and payable during an Extension Period, except at the end thereof, but each
installment of interest that would otherwise have been due and payable during such Extension Period
shall bear Additional Interest to the extent permitted by applicable law. The Company must give the
Trustee notice of its election to begin such Extension Period at least 5 Business Days prior to the
earlier of (i) the date interest on the Debentures would have been payable except for the election
to begin such Extension Period or (ii) the date such interest is payable, but in any event not less
than 5 Business Days prior to such record date. The Trustee
shall give notice of the Company’s election to begin a new Extension Period to the Securityholders.



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     Section 2.12 CUSIP Numbers. The Company in issuing the Debentures may use “CUSIP” numbers (if then
generally in use), and, if so, the Trustee shall use CUSIP numbers in notices of redemption as a
convenience to Securityholders; provided, however, that any such notice may state
that no representation is made as to the correctness of such numbers either as printed on the
Debentures or as contained in any notice of a redemption and that reliance may be placed only on
the other identification numbers printed on the Debentures, and any such redemption shall not be
affected by any defect in or omission of such numbers. The Company will promptly notify the Trustee
in writing of any change in the CUSIP numbers.



ARTICLE III




PARTICULAR COVENANTS OF THE COMPANY



     Section 3.1 Payment of Principal, Premium and Interest; Agreed Treatment of the Debentures.



     (a) The Company covenants and agrees that it will duly and punctually pay or cause to be paid
the principal of and premium, if any, and interest and any Additional Interest on the Debentures at
the place, at the respective times and in the manner provided in this Indenture and the Debentures.
Each installment of interest on the Debentures may be paid (i) by mailing checks for such interest
payable to the order of the holder of Debentures entitled thereto as they appear on the registry
books of the Company if a request for a wire transfer has not been received by the Company or (ii)
by wire transfer to any account with a banking institution located in the United States designated
in writing by such Person to the paying agent no later than the related record date.
Notwithstanding the foregoing, so long as the holder of this Debenture is the Institutional
Trustee, the payment of the principal of and interest on this Debenture will be made in immediately
available funds at such place and to such account as may be designated by the Institutional
Trustee.



     (b) The Company will treat the Debentures as indebtedness, and the amounts payable in respect
of the principal amount of such Debentures as interest, for all United States federal income tax
purposes. All payments in respect of such Debentures will be made free and clear of United States
withholding tax to any beneficial owner thereof that has provided an Internal Revenue Service Form
W8 BEN (or any substitute or successor form) establishing its non-United States status for United
States federal income tax purposes.



     (c) The Company has no present intention to exercise its right under Section 2.11 to defer
payments of interest on the Debentures by commencing an Extension Period.



     (d) The Company believes that the likelihood that it would exercise its right under Section
2.11 to defer payments of interest on the Debentures by commencing an Extension Period at any time
during which the Debentures are outstanding is remote because of the restrictions that would be
imposed on the Company’s ability to declare or pay dividends or distributions on, or to redeem,
purchase or make a liquidation payment with respect to, any of its
outstanding equity and on the Company’s ability to make any payments of principal of or
interest on, or repurchase or redeem, any of its debt securities that rank pari passu in all
respects with (or junior in interest to) the Debentures.



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     Section 3.2 Offices for Notices and Payments, etc. So long as any of the Debentures remain
outstanding, the Company will maintain in Hartford, Connecticut, an office or agency where the
Debentures may be presented for payment, an office or agency where the Debentures may be presented
for registration of transfer and for exchange as in this Indenture provided and an office or agency
where notices and demands to or upon the Company in respect of the Debentures or of this Indenture
may be served. The Company will give to the Trustee written notice of the location of any such
office or agency and of any change of location thereof. Until otherwise designated from time to
time by the Company in a notice to the Trustee, or specified as contemplated by Section 2.5, such
office or agency for all of the above purposes shall be the office or agency of the Trustee. In
case the Company shall fail to maintain any such office or agency in Hartford, Connecticut, or
shall fail to give such notice of the location or of any change in the location thereof,
presentations and demands may be made and notices may be served at the principal corporate trust
office of the Trustee.



     In addition to any such office or agency, the Company may from time to time designate one or
more offices or agencies outside Hartford, Connecticut, where the Debentures may be presented for
registration of transfer and for exchange in the manner provided in this Indenture, and the Company
may from time to time rescind such designation, as the Company may deem desirable or expedient;
provided, however, that no such designation or rescission shall in any manner
relieve the Company of its obligation to maintain any such office or agency in Hartford,
Connecticut, for the purposes above mentioned. The Company will give to the Trustee prompt written
notice of any such designation or rescission thereof.



     Section 3.3 Appointments to Fill Vacancies in Trustee’s Office. The Company, whenever necessary to
avoid or fill a vacancy in the office of Trustee, will appoint, in the manner provided in Section
6.9, a Trustee, so that there shall at all times be a Trustee hereunder.



     Section 3.4 Provision as to Paying Agent.



     (a) If the Company shall appoint a paying agent other than the Trustee, it will cause such
paying agent to execute and deliver to the Trustee an instrument in which such agent shall agree
with the Trustee, subject to the provision of this Section 3.4,




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




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




     (3) that it will, at any time during the continuance of any Event of Default,
upon the written request of the Trustee, forthwith pay to the Trustee all sums so
held in trust by such paying agent.



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     (b) If the Company shall act as its own paying agent, it will, on or before each due date of
the principal of and premium, if any, or interest, if any, on the Debentures, set aside, segregate
and hold in trust for the benefit of the holders of the Debentures a sum sufficient to pay such
principal, premium or interest so becoming due and will notify the Trustee in writing of any
failure to take such action and of any failure by the Company (or by any other obligor under the
Debentures) to make any payment of the principal of and premium, if any, or interest, if any, on
the Debentures when the same shall become due and payable.



     Whenever the Company shall have one or more paying agents for the Debentures, it will, on or
prior to each due date of the principal of and premium, if any, or interest, if any, on the
Debentures, deposit with a paying agent a sum sufficient to pay the principal, premium or interest
so becoming due, such sum to be held in trust for the benefit of the Persons entitled thereto and
(unless such paying agent is the Trustee) the Company shall promptly notify the Trustee in writing
of its action or failure to act.



     (c) Anything in this Section 3.4 to the contrary notwithstanding, the Company may, at any
time, for the purpose of obtaining a satisfaction and discharge with respect to the Debentures, or
for any other reason, pay, or direct any paying agent to pay to the Trustee all sums held in trust
by the Company or any such paying agent, such sums to be held by the Trustee upon the trusts herein
contained.



     (d) Anything in this Section 3.4 to the contrary notwithstanding, the agreement to hold sums
in trust as provided in this Section 3.4 is subject to Sections 12.3 and 12.4.


     Section 3.5 Certificate to Trustee. The Company will deliver to the Trustee on or before 120 days after
the end of each fiscal year, so long as Debentures are outstanding hereunder, a Certificate stating
that in the course of the performance by the signers of their duties as officers of the Company
they would normally have knowledge of any default during such fiscal year by the Company in the
performance of any covenants contained herein, stating whether or not they have knowledge of any
such default and, if so, specifying each such default of which the signers have knowledge and the
nature and states thereof.



     Section 3.6 Additional Sums. If and for so long as the Trust is the holder of all Debentures and the
Trust is required to pay any additional taxes, duties, assessments or other governmental charges as
a result of a Tax Event, the Company will pay such additional amounts (“Additional Sums”)
on the Debentures as shall be required so that the net amounts received and retained by the Trust
after paying taxes, duties, assessments or other governmental charges will be equal to the amounts
the Trust would have received if no such taxes, duties, assessments or other governmental charges
had been imposed. Whenever in this Indenture or the Debentures there is a reference in any context
to the payment of principal of or interest on the Debentures, such mention shall be deemed to
include mention of payments of the Additional Sums provided for in this paragraph to the extent
that, in such context, Additional Sums are, were or would be payable in respect thereof pursuant to
the provisions of this paragraph and express mention of the
payment of Additional Sums (if applicable) in any provisions hereof shall not be construed as
excluding Additional Sums in those provisions hereof where such express mention is not made;
provided, however, that the deferral of the payment of interest during an Extension
Period


21









 






pursuant to Section 2.11 shall not defer the payment of any Additional Sums that may be due
and payable.




     Section 3.7 Compliance with Consolidation Provisions. The Company will not, while any of the Debentures
remain outstanding, consolidate with, or merge into, or merge into itself, or sell or convey all or
substantially all of its property to any other Person unless the provisions of Article XI hereof
are complied with.



     Section 3.8 Limitation on Dividends. If Debentures are initially issued to the Trust or a trustee
of such trust in connection with the issuance of Trust Securities by the Trust (regardless of
whether Debentures continue to be held by such Trust) and (i) there shall have occurred and be
continuing any event that would constitute an Event of Default, (ii) the Company shall be in
default with respect to its payment of any obligations under the Capital Securities Guarantee, or
(iii) the Company shall have given notice of its election to defer payments of interest on the
Debentures by extending the interest payment period as provided herein and such period, or any
extension thereof, shall be continuing, then the Company shall not, and shall not allow any
Affiliate of the Company to, (x) declare or pay any dividends or distributions on, or redeem,
purchase, acquire, or make a liquidation payment with respect to, any of the Company’s Ownership
Interests or such Affiliate’s capital stock (other than payments of dividends or distributions to
the Company) or make any guarantee payments with respect to the foregoing or (y) make any payment
of principal of or interest or premium, if any, on or repay, repurchase or redeem any debt
securities of the Company or any Affiliate that rank pari passu in all respects with or junior in
interest to the Debentures (other than, with respect to clauses (x) or (y) above, (1) repurchases,
redemptions or other acquisitions of shares of Ownership Interests of the Company in connection
with any employment contract, benefit plan or other similar arrangement with or for the benefit of
one or more employees, officers, directors or consultants, in connection with a dividend or
distribution reinvestment or Ownership Interest purchase plan or in connection with the issuance of
Ownership Interests of the Company (or securities convertible into or exercisable for such
Ownership Interests) as consideration in an acquisition transaction entered into prior to the
applicable Extension Period, (2) as a result of any exchange or conversion of any class or series
of the Company’s Ownership Interests (or any capital stock of a subsidiary of the Company) for any
class or series of the Company’s Ownership Interests or of any class or series of the Company’s
indebtedness for any class or series of the Company’s Ownership Interests, (3) the purchase of
fractional interests in shares or units of the Company’s Ownership Interests pursuant to the
conversion or exchange provisions of such Ownership Interest or the security being converted or
exchanged, (4) any declaration of a dividend or distribution in connection with any Ownership
Interest holder’s rights plan, or the issuance of rights, Ownership Interests or other property
under any Ownership Interest holder’s rights plan, or the redemption or repurchase of rights
pursuant thereto, (5) any dividend or distribution in the form of Ownership Interests, warrants,
options or other rights where the dividend Ownership Interest or the Ownership Interests issuable
upon exercise of such warrants, options or other rights is the same Ownership Interest as that on
which the dividend or distribution is being paid or ranks pari passu with or junior to such
Ownership Interest and any cash payments in lieu of
fractional shares or units issued in connection therewith, or (6) payments under the Capital
Securities Guarantee).



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     Section 3.9 Covenants as to the Trust. For so long as the Trust Securities remain outstanding, the
Company shall maintain 100% ownership of the Common Securities; provided, however,
that any permitted successor of the Company under this Indenture may succeed to the Company’s
ownership of such Common Securities. The Company, as owner of the Common Securities, shall cause
the Trust (a) to remain a statutory trust, except in connection with a distribution of Debentures
to the holders of Trust Securities in liquidation of the Trust, the redemption of all of the Trust
Securities or certain mergers, consolidations or amalgamations, each as permitted by the
Declaration, (b) to otherwise continue to be classified as a grantor trust for United States
federal income tax purposes and (c) to cause each holder of Trust Securities to be treated as
owning an undivided beneficial interest in the Debentures.



     Section 3.10 Additional Junior Indebtedness. The Company shall not, and it shall not cause or permit any
Affiliate of the Company to incur, issue or be obligated on any Additional Junior Indebtedness,
either directly or indirectly, by way of guarantee, suretyship or otherwise, other than: (i)
Additional Junior Indebtedness that, by its terms, is expressly stated to be either junior and
subordinate or pari passu in all respects to the Debentures, and (ii) Additional Junior
Indebtedness of which the Company has notified (and, if then required under the applicable
guidelines of the regulating entity, has received approval from) the Federal Reserve, if the
Company is a bank holding company, or the OTS, if the Company is a savings and loan holding
company.




ARTICLE IV




SECURITYHOLDERS’ LISTS AND REPORTS

BY THE COMPANY AND THE TRUSTEE



     Section 4.1 Securityholders’ Lists. The Company covenants and agrees that it will furnish or caused to
be furnished to the Trustee:



     (a) on each regular record date for the Debentures, a list, in such form as the Trustee may
reasonably require, of the names and addresses of the Securityholders of the Debentures as of such
record date; and



     (b) at such other times as the Trustee may request in writing, within 30 days after the
receipt by the Company of any such request, a list of similar form and content as of a date not
more than 15 days prior to the time such list is furnished;


except that no such lists need be furnished under this Section 4.1 so long as the Trustee is in
possession thereof by reason of its acting as Debenture registrar.




     Section 4.2 Preservation and Disclosure of Lists.



     (a) The Trustee shall preserve, in as current a form as is reasonably practicable, all
information as to the names and addresses of the holders of Debentures (1) contained in the most
recent list furnished to it as provided in Section 4.1 or (2) received by it in the capacity of
Debentures registrar (if so acting) hereunder. The Trustee may destroy any list furnished to
it as provided in Section 4.1 upon receipt of a new list so furnished.



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     (b) In case three or more holders of Debentures (hereinafter referred to as “applicants”)
apply in writing to the Trustee and furnish to the Trustee reasonable proof that each such
applicant has owned a Debenture for a period of at least 6 months preceding the date of such
application, and such application states that the applicants desire to communicate with other
holders of Debentures with respect to their rights under this Indenture or under such Debentures
and is accompanied by a copy of the form of proxy or other communication which such applicants
propose to transmit, then the Trustee shall within 5 Business Days after the receipt of such
application, at its election, either:




     (1) afford such applicants access to the information preserved at the time by
the Trustee in accordance with the provisions of subsection (a) of this Section 4.2,
or




     (2) inform such applicants as to the approximate number of holders of
Debentures whose names and addresses appear in the information preserved at the time
by the Trustee in accordance with the provisions of subsection (a) of this Section
4.2, and as to the approximate cost of mailing to such Securityholders the form of
proxy or other communication, if any, specified in such application.



     If the Trustee shall elect not to afford such applicants access to such information, the
Trustee shall, upon the written request of such applicants, mail to each Securityholder whose name
and address appear in the information preserved at the time by the Trustee in accordance with the
provisions of subsection (a) of this Section 4.2 a copy of the form of proxy or other communication
which is specified in such request with reasonable promptness after a tender to the Trustee of the
material to be mailed and of payment, or provision for the payment, of the reasonable expenses of
mailing, unless within five days after such tender, the Trustee shall mail to such applicants and
file with the Securities and Exchange Commission, if permitted or required by applicable law,
together with a copy of the material to be mailed, a written statement to the effect that, in the
opinion of the Trustee, such mailing would be contrary to the best interests of the holders of all
Debentures, as the case may be, or would be in violation of applicable law. Such written statement
shall specify the basis of such opinion. If said Commission, as permitted or required by applicable
law, after opportunity for a hearing upon the objections specified in the written statement so
filed, shall enter an order refusing to sustain any of such objections or if, after the entry of an
order sustaining one or more of such objections, said Commission shall find, after notice and
opportunity for hearing, that all the objections so sustained have been met and shall enter an
order so declaring, the Trustee shall mail copies of such material to all such Securityholders with
reasonable promptness after the entry of such order and the renewal of such tender; otherwise the
Trustee shall be relieved of any obligation or duty to such applicants respecting their
application.



     (c) Each and every holder of Debentures, by receiving and holding the same, agrees with
Company and the Trustee that neither the Company nor the Trustee nor any paying agent shall be held
accountable by reason of the disclosure of any such information as to the names and addresses of
the holders of Debentures in accordance with the provisions of subsection (b) of this
Section 4.2, 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 said subsection (b).



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ARTICLE V




REMEDIES OF THE TRUSTEE AND SECURITYHOLDERS

UPON AN EVENT OF DEFAULT



     Section 5.1 Events of Default. “Event of Default,” wherever used herein, 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):



     (a) the Company defaults in the payment of any interest upon any Debenture when it becomes due
and payable, and fails to cure such default for a period of 30 days; provided,
however, that a valid extension of an interest payment period by the Company in accordance
with the terms of this Indenture shall not constitute a default in the payment of interest for this
purpose; or



     (b) the Company defaults in the payment of all or any part of the principal of (or premium, if
any, on) any Debentures as and when the same shall become due and payable either at maturity, upon
redemption, by declaration of acceleration or otherwise; or



     (c) the Company defaults in the performance of, or breaches, any of its covenants or
agreements in this Indenture or in the terms of the Debentures established as contemplated in this
Indenture (other than a covenant or agreement a default in whose performance or whose breach is
elsewhere in this Section specifically dealt with), and continuance of such default or breach for a
period of 60 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 aggregate principal
amount of the outstanding Debentures, 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; or



     (d) a court of competent jurisdiction shall enter a decree or order for relief in respect of
the Company in an involuntary case under any applicable bankruptcy, insolvency, reorganization or
other similar law now or hereafter in effect, or appointing a receiver, liquidator, assignee,
custodian, trustee, sequestrator (or similar official) of the Company or for any substantial part
of its property, or ordering the winding-up or liquidation of its affairs and such decree or order
shall remain unstayed and in effect for a period of 90 consecutive days; or



     (e) the Company shall commence a voluntary case under any applicable bankruptcy, insolvency,
reorganization or other similar law now or hereafter in effect, shall consent to the entry of an
order for relief in an involuntary case under any such law, or shall consent to the appointment of
or taking possession by a receiver, liquidator, assignee, trustee, custodian, sequestrator (or
other similar official) of the Company or of any substantial part of its property,
or shall make any general assignment for the benefit of creditors, or shall fail generally to
pay its debts as they become due; or



     (f) the Trust shall have voluntarily or involuntarily liquidated, dissolved, wound-up its
business or otherwise terminated its existence except in connection with (i) the distribution of



25









 







the Debentures to holders of such Trust Securities in liquidation of their interests in the Trust,
(ii) the redemption of all of the outstanding Trust Securities or (iii) certain mergers,
consolidations or amalgamations, each as permitted by the Declaration.



     If an Event of Default occurs and is continuing with respect to the Debentures, then, and in
each and every such case, unless the principal of the Debentures shall have already become due and
payable, either the Trustee or the holders of not less than 25% in aggregate principal amount of
the Debentures then outstanding hereunder, by notice in writing to the Company (and to the Trustee
if given by Securityholders), may declare the entire principal of the Debentures and the interest
accrued thereon, if any, to be due and payable immediately, and upon any such declaration the same
shall become immediately due and payable.



     The foregoing provisions, however, are subject to the condition that if, at any time after the
principal of the Debentures shall have been so declared due and payable, and before any judgment or
decree for the payment of the moneys due shall have been obtained or entered as hereinafter
provided, the Company shall pay or shall deposit with the Trustee a sum sufficient to pay all
matured installments of interest upon all the Debentures and the principal of and premium, if any,
on the Debentures which shall have become due otherwise than by acceleration (with interest upon
such principal and premium, if any, and Additional Interest) and such amount as shall be sufficient
to cover reasonable compensation to the Trustee and each predecessor Trustee, their respective
agents, attorneys and counsel, and all other amounts due to the Trustee pursuant to Section 6.6,
and if any and all Events of Default under this Indenture, other than the non-payment of the
principal of or premium, if any, on Debentures which shall have become due by acceleration, shall
have been cured, waived or otherwise remedied as provided herein — then and in every such case the
holders of a majority in aggregate principal amount of the Debentures then outstanding, by written
notice to the Company and to the Trustee, may waive all defaults and rescind and annul such
declaration and its consequences, but no such waiver or rescission and annulment shall extend to or
shall affect any subsequent default or shall impair any right consequent thereon.



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



     Section 5.2 Payment of Debentures on Default; Suit Therefor. The Company covenants that (a) in case
default shall be made in the payment of any installment of interest upon any of the Debentures as
and when the same shall become due and payable, and such default shall have continued for a period
of 30 days, or (b) in case default shall be made in the
payment of the principal of or premium, if any, on any of the Debentures as and when the same shall
have become due and payable, whether at maturity of the Debentures or upon redemption or by
declaration of acceleration or otherwise — then, upon demand of the Trustee, the Company will pay
to the Trustee, for the benefit of the holders of the Debentures the whole amount that then shall
have become due and payable on all Debentures for principal and premium, if any, or



26









 







interest, or
both, as the case may be, with Additional Interest accrued on the Debentures (to the extent that
payment of such interest is enforceable under applicable law and, if the Debentures are held by the
Trust or a trustee of such Trust, without duplication of any other amounts paid by the Trust or a
trustee in respect thereof); and, in addition thereto, such further amount as shall be sufficient
to cover the costs and expenses of collection, including a reasonable compensation to the Trustee,
its agents, attorneys and counsel, and any other amounts due to the Trustee under Section 6.6. In
case the Company shall fail forthwith to pay such amounts upon such demand, the Trustee, in its own
name and as trustee of an express trust, shall be entitled and empowered to institute any actions
or proceedings at law or in equity for the collection of the sums so due and unpaid, and may
prosecute any such action or proceeding to judgment or final decree, and may enforce any such
judgment or final decree against the Company or any other obligor on such Debentures and collect in
the manner provided by law out of the property of the Company or any other obligor on such
Debentures wherever situated the moneys adjudged or decreed to be payable.



     In case there shall be pending proceedings for the bankruptcy or for the reorganization of the
Company or any other obligor on the Debentures under Bankruptcy Law, or in case a receiver or
trustee shall have been appointed for the property of the Company or such other obligor, or in the
case of any other similar judicial proceedings relative to the Company or other obligor upon the
Debentures, or to the creditors or property of the Company or such other obligor, the Trustee,
irrespective of whether the principal of the Debentures shall then be due and payable as therein
expressed or by declaration of acceleration or otherwise and irrespective of whether the Trustee
shall have made any demand pursuant to the provisions of this Section 5.2, shall be entitled and
empowered, by intervention in such proceedings or otherwise,




	 	(i)	 	to file and prove a claim or claims for the whole amount of principal and
interest owing and unpaid in respect of the Debentures and, in case of any judicial
proceedings,
	 
	 	(ii)	 	to file such proofs of claim and other papers or documents as may be necessary
or advisable in order to have the claims of the Trustee (including any claim for
reasonable compensation to the Trustee and each predecessor Trustee, and their
respective agents, attorneys and counsel, and for reimbursement of all other amounts
due to the Trustee under Section 6.6), and of the Securityholders allowed in such
judicial proceedings relative to the Company or any other obligor on the Debentures, or
to the creditors or property of the Company or such other obligor, unless prohibited by
applicable law and regulations, to vote on behalf of the holders of the Debentures in
any election of a trustee or a standby trustee in arrangement, reorganization,
liquidation or other bankruptcy or insolvency proceedings or Person performing similar
functions in comparable proceedings,
	 
	 	(iii)	 	to collect and receive any moneys or other property payable or deliverable on
any such claims, and
	 
	 	(iv)	 	to distribute the same after the deduction of its charges and expenses.





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Any receiver, assignee or trustee in bankruptcy or reorganization is hereby authorized by each of
the Securityholders 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 Securityholders, to pay to the Trustee such
amounts as shall be sufficient to cover reasonable compensation to the Trustee, each predecessor
Trustee and their respective agents, attorneys and counsel, and all other amounts due to the
Trustee under Section 6.6.




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



     All rights of action and of asserting claims under this Indenture, or under any of the
Debentures, may be enforced by the Trustee without the possession of any of the Debentures, or the
production thereof at any trial or other proceeding relative thereto, and any such suit or
proceeding instituted by the Trustee shall be brought in its own name as trustee of an express
trust, and any recovery of judgment shall be for the ratable benefit of the holders of the
Debentures.



     In any proceedings brought by the Trustee (and also any proceedings involving the
interpretation of any provision of this Indenture to which the Trustee shall be a party), the
Trustee shall be held to represent all the holders of the Debentures, and it shall not be necessary
to make any holders of the Debentures parties to any such proceedings.



     Section 5.3 Application of Moneys Collected by Trustee. Any moneys collected by the Trustee pursuant to
this Article V shall be applied in the following order, at the date or dates fixed by the Trustee
for the distribution of such moneys, upon presentation of the several Debentures in respect of
which moneys have been collected, and stamping thereon the payment, if only partially paid, and
upon surrender thereof if fully paid:



     First: To the payment of costs and expenses incurred by, and reasonable fees of, the Trustee,
its agents, attorneys and counsel, and of all other amounts due to the Trustee under Section 6.6;



     Second: To the payment of all Senior Indebtedness of the Company if and to the extent required
by Article XV;



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



     Fourth: The balance, if any, to the Company.



     Section 5.4 Proceedings by Securityholders. No holder of any Debenture shall have any right to
institute any suit, action or proceeding for any remedy hereunder, unless such holder



28









 







previously
shall have given to the Trustee written notice of an Event of Default with respect to the
Debentures and unless the holders of not less than 25% in aggregate principal amount of the
Debentures then outstanding shall have given the Trustee a written request to institute such
action, suit or proceeding and shall have offered to the Trustee such reasonable indemnity as it
may require against the costs, expenses and liabilities to be incurred thereby, and the Trustee for
60 days after its receipt of such notice, request and offer of indemnity shall have failed to
institute any such action, suit or proceeding; provided, however, that no holder of
Debentures shall have any right to prejudice the rights of any other holder of Debentures, obtain
priority or preference over any other such holder or enforce any right under this Indenture except
in the manner herein provided and for the equal, ratable and common benefit of all holders of
Debentures.



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



     Section 5.5 Proceedings by Trustee. In case of an Event of Default hereunder the Trustee may in its
discretion proceed to protect and enforce the rights vested in it by this Indenture by such
appropriate judicial proceedings as the Trustee shall deem most effectual to protect and enforce
any of such rights, either by suit in equity or by action at law or by proceeding in bankruptcy or
otherwise, whether for the specific enforcement of any covenant or agreement contained in this
Indenture or in aid of the exercise of any power granted in this Indenture, or to enforce any other
legal or equitable right vested in the Trustee by this Indenture or by law.



     Section 5.6 Remedies Cumulative and Continuing; Delay or Omission Not a Waiver. Except as otherwise
provided in Section 2.6, all powers and remedies given by this Article V to the Trustee or to the
Securityholders shall, to the extent permitted by law, be deemed cumulative and not exclusive of
any other powers and remedies available to the Trustee or the holders of the Debentures, by
judicial proceedings or otherwise, to enforce the performance or observance of the covenants and
agreements contained in this Indenture or otherwise established with respect to the Debentures, and
no delay or omission of the Trustee or of any holder of any of the Debentures to exercise any right
or power accruing upon any Event of
Default occurring and continuing as aforesaid shall impair any such right or power, or shall be
construed to be a waiver of any such default or an acquiescence therein; and, subject to the
provisions of Section 5.4, every power and remedy given by this Article V or by law to the



29









 







Trustee or to the Securityholders may be exercised from time to time, and as often as shall be deemed
expedient, by the Trustee or by the Securityholders.



     No delay or omission of the Trustee or any Securityholder 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 any Securityholder may be exercised from time to time, and as often
as may be deemed expedient, by the Trustee (in accordance with its duties under Section 6.1 hereof)
or by such holder, as the case may be.



     Section 5.7 Direction of Proceedings and Waiver of Defaults by Majority of Securityholders. The holders
of a majority in aggregate principal amount of the Debentures affected (voting as one class) at the
time outstanding shall have the right to direct the time, method, and place of conducting any
proceeding for any remedy available to the Trustee, or exercising any trust or power conferred on
the Trustee with respect to such Debentures; provided, however, that (subject to
the provisions of Section 6.1) the Trustee shall have the right to decline to follow any such
direction if the Trustee shall determine that the action so directed would be unjustly prejudicial
to the holders not taking part in such direction or if the Trustee being advised by counsel
determines that the action or proceeding so directed may not lawfully be taken or if a Responsible
Officer of the Trustee shall determine that the action or proceedings so directed would involve the
Trustee in personal liability.



     The holders of a majority in aggregate principal amount of the Debentures at the time
outstanding may on behalf of the holders of all of the Debentures waive (or modify any previously
granted waiver of) any past default or Event of Default, and its consequences, except a default (a)
in the payment of principal of, premium, if any, or interest on any of the Debentures, (b) in
respect of covenants or provisions hereof which cannot be modified or amended without the consent
of the holder of each Debenture affected, or (c) in respect of the covenants contained in Section
3.9; provided, however, that if the Debentures are held by the Trust or a trustee
of such trust, such waiver or modification to such waiver shall not be effective until the holders
of a majority in Liquidation Amount of Trust Securities of the Trust shall have consented to such
waiver or modification to such waiver, provided, further, that if the consent of
the holder of each outstanding Debenture is required, such waiver shall not be effective until each
holder of the Trust Securities of the Trust shall have consented to such waiver. Upon any such
waiver, the default covered thereby shall be deemed to be cured for all purposes of this Indenture
and the Company, the Trustee and the holders of the Debentures shall be restored to their former
positions and rights hereunder, respectively; but no such waiver shall extend to any subsequent or
other default or Event of Default or impair any right consequent thereon. Whenever any default or
Event of Default hereunder shall have been waived as permitted by this Section, said default or
Event of Default shall for all purposes of the Debentures and this Indenture be deemed to have been
cured and to be not continuing.



     Section 5.8 Notice of Defaults. The Trustee shall, within 90 days after the actual knowledge by a
Responsible Officer of the Trustee of the occurrence of a default with respect to
the Debentures, mail to all Securityholders, as the names and addresses of such holders appear upon
the Debenture Register, notice of all defaults with respect to the Debentures known to the Trustee,
unless such defaults shall have been cured before the giving of such notice (the term



30









 







“defaults” for the purpose of this Section 5.8 being hereby defined to be the events specified in clauses (a),
(b), (c), (d), (e) and (f) of Section 5.1, not including periods of grace, if any, provided for
therein); provided, however, that, except in the case of default in the payment of
the principal of, premium, if any, or interest on any of the Debentures, 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 interests of the Securityholders.



     Section 5.9 Undertaking to Pay Costs. All parties to this Indenture agree, and each holder of any
Debenture 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 and expenses,
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; provided, however, that the
provisions of this Section 5.9 shall not apply to any suit instituted by the Trustee, to any suit
instituted by any Securityholder, or group of Securityholders, holding in the aggregate more than
10% in principal amount of the Debentures outstanding, or to any suit instituted by any
Securityholder for the enforcement of the payment of the principal of (or premium, if any) or
interest on any Debenture against the Company on or after the same shall have become due and
payable.



ARTICLE VI




CONCERNING THE TRUSTEE


     Section 6.1 Duties and Responsibilities of Trustee. With respect to the holders of Debentures issued
hereunder, the Trustee, prior to the occurrence of an Event of Default with respect to the
Debentures and after the curing or waiving of all Events of Default which may have occurred, with
respect to the Debentures, undertakes to perform such duties and only such duties as are
specifically set forth in this Indenture, and no implied covenants shall be read into this
Indenture against the Trustee. In case an Event of Default with respect to the Debentures has
occurred (which has not been cured or waived), 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.




     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:



     (a) prior to the occurrence of an Event of Default with respect to Debentures and after the
curing or waiving of all Events of Default which may have occurred




     (1) the duties and obligations of the Trustee with respect to Debentures shall
be determined solely by the express provisions of this Indenture, and the
Trustee shall not be liable except for the performance of such duties and
obligations with respect to the Debentures as are specifically set forth in this



31









 







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 the part of the Trustee, the Trustee may
conclusively rely, as to the truth of the statements and the correctness of the
opinions expressed therein, upon any certificates or opinions furnished to the
Trustee and conforming to the requirements of this Indenture; but, in the case of
any such certificates or opinions 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) the Trustee shall not be liable for any error of judgment made in good faith by a
Responsible Officer or Officers of the Trustee, unless it shall be proved that the Trustee was
negligent in ascertaining the pertinent facts; and



     (c) 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 Securityholders pursuant to Section 5.7,
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.



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



     Section 6.2 Reliance on Documents, Opinions, etc. Except as otherwise provided in
Section 6.1:



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



     (b) any request, direction, order or demand of the Company mentioned herein shall be
sufficiently evidenced by an Officers’ Certificate (unless other evidence in respect thereof be
herein specifically prescribed); and any Board Resolution may be evidenced to the Trustee by a copy
thereof certified by the Secretary or an Assistant Secretary of the Company;



     (c) the Trustee may consult with counsel of its selection and any advice or 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 accordance with such advice or Opinion of Counsel;



     (d) the Trustee shall be under no obligation to exercise any of the rights or powers vested in
it by this Indenture at the request, order or direction of any of the Securityholders,



32









 







pursuant to
the provisions of this Indenture, unless such Securityholders shall have offered to the Trustee
reasonable security or indemnity against the costs, expenses and liabilities which may be incurred
therein or thereby;



     (e) the Trustee shall not be liable for any action taken 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; nothing contained herein shall, however, relieve the Trustee of the obligation,
upon the occurrence of an Event of Default with respect to the Debentures (that has not been cured
or waived) to exercise with respect to Debentures such of the rights and powers vested in it by
this Indenture, and to use the same degree of care and skill in their exercise, as a prudent man
would exercise or use under the circumstances in the conduct of his own affairs;



     (f) the Trustee shall not be bound to make any investigation into the facts or matters stated
in any resolution, certificate, statement, instrument, opinion, report, notice, request, consent,
order, approval, bond, debenture, coupon or other paper or document, unless requested in writing to
do so by the holders of not less than a majority in aggregate principal amount of the outstanding
Debentures affected thereby; provided, however, that if the payment within a
reasonable time to the Trustee of the costs, expenses or liabilities likely to be incurred by it in
the making of such investigation is, in the opinion of the Trustee, not reasonably assured to the
Trustee by the security afforded to it by the terms of this Indenture, the Trustee may require
reasonable indemnity against such expense or liability as a condition to so proceeding;



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



     (h) with the exceptions of defaults under Sections 5.1(a) or 5.1(b), the Trustee shall not be
charged with knowledge of any Default or Event of Default with respect to the Debentures unless a
written notice of such Default or Event of Default shall have been given to the Trustee by the
Company or any other obligor on the Debentures or by any holder of the Debentures.



     Section 6.3 No Responsibility for Recitals, etc. The recitals contained herein and in the Debentures
(except in the certificate of authentication of the Trustee or the Authenticating Agent) shall be
taken as the statements of the Company, and the Trustee and the Authenticating Agent assume no
responsibility for the correctness of the same. The Trustee and the Authenticating Agent make no
representations as to the validity or sufficiency of this Indenture or of the Debentures. The
Trustee and the Authenticating Agent shall not be accountable for the use or application by the
Company of any Debentures or the proceeds of any Debentures authenticated and delivered by the
Trustee or the Authenticating Agent in conformity with the provisions of this Indenture.



     Section 6.4 Trustee, Authenticating Agent, Paying Agents, Transfer Agents or Registrar May Own
Debentures. The Trustee or any Authenticating Agent or any paying agent or any transfer agent
or any Debenture registrar, in its individual or any other capacity, may
become the owner or pledgee of Debentures with the same rights it would have if it were not
Trustee, Authenticating Agent, paying agent, transfer agent or Debenture registrar.



33









 





     Section 6.5 Moneys to be Held in Trust. Subject to the provisions of Section 12.4, all moneys received
by the Trustee or any paying agent shall, until used or applied as herein provided, be held in
trust for the purpose for which they were received, but need not be segregated from other funds
except to the extent required by law. The Trustee and any paying agent shall be under no liability
for interest on any money received by it hereunder except as otherwise agreed in writing with the
Company. So long as no Event of Default shall have occurred and be continuing, all interest allowed
on any such moneys shall be paid from time to time upon the written order of the Company, signed by
the Chairman of the Board of Directors, the President, a Managing Director, a Vice President the
Treasurer or an Assistant Treasurer of the Company.



     Section 6.6 Compensation and Expenses of Trustee. The Company covenants and agrees to pay to the
Trustee from time to time, and the Trustee shall be entitled to, such compensation as shall be
agreed to in writing between the Company and the Trustee (which shall not be limited by any
provision of law in regard to the compensation of a trustee of an express trust), and the Company
will pay or reimburse the Trustee upon its request for all reasonable expenses, disbursements and
advances incurred or made by the Trustee in accordance with any of the provisions of this Indenture
(including the reasonable compensation and the expenses and disbursements of its counsel and of all
Persons not regularly in its employ) except any such expense, disbursement or advance as may arise
from its negligence or willful misconduct. The Company also covenants to indemnify each of the
Trustee or any predecessor Trustee (and its officers, agents, directors and employees) for, and to
hold it hat unless against, any and all loss, damage, claim, liability or expense including taxes
(other than taxes based on the income of the Trustee) incurred without negligence or willful
misconduct on the part of the Trustee and arising out of or in connection with the acceptance or
administration of this trust, including the costs and expenses of defending itself against any
claim of liability. The obligations of the Company under this Section 6.6 to compensate and
indemnify the Trustee and to pay or reimburse the Trustee for expenses, disbursements and advances
shall constitute additional indebtedness hereunder. Such additional indebtedness shall be secured
by a lien prior to that of the Debentures upon all property and funds held or collected by the
Trustee as such, except funds held in trust for the benefit of the holders of particular
Debentures.



     Without prejudice to any other rights available to the Trustee under applicable law, when the
Trustee incurs expenses or renders services in connection with an Event of Default specified in
Section 5.1(d), Section 5.1(e) or Section 5.1(f), the expenses (including the reasonable charges
and expenses of its counsel) and the compensation for the services are intended to constitute
expenses of administration under any applicable federal or state bankruptcy, insolvency or other
similar law.



     The provisions of this Section shall survive the resignation or removal of the Trustee and the
defeasance or other termination of this Indenture.



     Notwithstanding anything in this Indenture or any Debenture to the contrary, the Trustee shall
have no obligation whatsoever to advance funds to pay any principal of or interest on or
other amounts with respect to the Debentures or otherwise advance funds to or on behalf of the
Company.



34









 





     Section 6.7 Officers’ Certificate as Evidence. Except as otherwise provided in Sections 6.1 and 6.2,
whenever in the administration of the provisions of this Indenture the Trustee shall deem it
necessary or desirable that a matter be proved or established prior to taking or omitting any
action hereunder, such matter (unless other evidence in respect thereof be herein specifically
prescribed) may, in the absence of negligence or willful misconduct on the part of the Trustee, be
deemed to be conclusively proved and established by an Officers’ Certificate delivered to the
Trustee, and such certificate, in the absence of negligence or willful misconduct on the part of
the Trustee, shall be full warrant to the Trustee for any action taken or omitted by it under the
provisions of this Indenture upon the faith thereof.



     Section 6.8 Eligibility of Trustee. The Trustee hereunder shall at all times be a corporation organized
and doing business under the laws of the United States of America or any state or territory thereof
or of the District of Columbia or a corporation or other Person authorized under such laws to
exercise corporate trust powers, having (or whose obligations under this Indenture are guaranteed
by an affiliate having) a combined capital and surplus of at least 50 million U.S. dollars
($50,000,000.00) and subject to supervision or examination by federal, state, territorial, or
District of Columbia authority. If such corporation publishes reports of condition at least
annually, pursuant to law or to the requirements of the aforesaid supervising or examining
authority, then for the purposes of this Section 6.8 the combined capital and surplus of such
corporation shall be deemed to be its combined capital and surplus as set forth in its most recent
records of condition so published.



     The Company may not, nor may any Person directly or indirectly controlling, controlled by, or
under common control with the Company, serve as Trustee.



     In case at any time the Trustee shall cease to be eligible in accordance with the provisions
of this Section 6.8, the Trustee shall resign immediately in the manner and with the effect
specified in Section 6.9.



     Section 6.9 Resignation or Removal of Trustee



     (a) The Trustee, or any trustee or trustees hereafter appointed, may at any time resign by
giving written notice of such resignation to the Company and by mailing notice thereof, at the
Company’s expense, to the holders of the Debentures at their addresses as they shall appear on the
Debenture Register. Upon receiving such notice of resignation, the Company shall promptly appoint a
successor trustee or trustees by written instrument, in duplicate, executed by order of its Board
of Directors, one copy of which instrument shall be delivered to the resigning Trustee and one copy
to the successor Trustee. If no successor Trustee shall have been so appointed and have accepted
appointment within 30 days after the mailing of such notice of resignation to the affected
Securityholders, the resigning Trustee may petition any court of competent jurisdiction for the
appointment of a successor Trustee, or any Securityholder who has been a bona fide holder of a
Debenture or Debentures for at least six months may, subject to the provisions of Section 5.9, on
behalf of himself and all others similarly situated, petition any such court for the
appointment of a successor Trustee. Such court may thereupon, after such notice, if any, as it
may deem proper and prescribe, appoint a successor Trustee.



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



35









 






     (1) the Trustee shall fail to comply with the provisions of Section 6.8 after
written request therefor by the Company or by any Securityholder who has been a bona
fide holder of a Debenture or Debentures for at least 6 months, or




     (2) the Trustee shall cease to be eligible in accordance with the provisions of
Section 6.8 and shall fail to resign after written request therefor by the Company
or by any such Securityholder, or




     (3) the Trustee shall become incapable of acting, or shall 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, the Company may remove the Trustee and appoint
a successor Trustee by written instrument, in duplicate, executed by
order of the Board of Directors, one copy of which instrument shall be
delivered to the Trustee so removed and one copy to the successor
Trustee, or, subject to the provisions of Section 5.9, any
Securityholder who has been a bona fide holder of a Debenture or
Debentures for at least 6 months may, on behalf of himself and all
others similarly situated, petition any court of competent jurisdiction
for the removal of the Trustee and the appointment of a successor
Trustee. Such court may thereupon, after such notice, if any, as it may
deem proper and prescribe, remove the Trustee and appoint successor
Trustee.



     (c) Upon prior written notice to the Company and the Trustee, the holders of a majority in
aggregate principal amount of the Debentures at the time outstanding may at any time remove the
Trustee and nominate a successor Trustee, which shall be deemed appointed as successor Trustee
unless within 10 Business Days after such nomination the Company objects thereto, in which case, or
in the case of a failure by such holders to nominate a successor Trustee, the Trustee so removed or
any Securityholder, upon the terms and conditions and otherwise as in subsection (a) of this
Section 6.9 provided, may petition any court of competent jurisdiction for an appointment of a
successor.



     (d) Any resignation or removal of the Trustee and appointment of a successor Trustee pursuant
to any of the provisions of this Section shall become effective upon acceptance of appointment by
the successor Trustee as provided in Section 6.10.



     Section 6.10 Acceptance by Successor Trustee. Any successor Trustee appointed as provided in Section 6.9
shall execute, acknowledge and deliver to the Company and to its predecessor Trustee an instrument
accepting such appointment hereunder, 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,
duties and obligations with respect to the Debentures of its predecessor hereunder, with like
effect as if originally named as Trustee herein: but, nevertheless, on the written request of the
Company or of the successor Trustee, the Trustee ceasing to act shall, upon payment of any



36









 







amounts
then due it pursuant to the provisions of Section 6.6, execute and deliver an instrument
transferring to such successor Trustee all the rights and powers of the Trustee so ceasing to act
and shall duly assign, transfer and deliver to such successor Trustee all property and money held
by such retiring Trustee thereunder. Upon request of any such successor Trustee, the Company shall
execute any and all instruments in writing for more fully and certainly vesting in and confirming
to such successor Trustee all such rights and powers. Any Trustee ceasing to act shall,
nevertheless, retain a lien upon all property or funds held or collected by such Trustee to secure
any amounts then due it pursuant to the provisions of Section 6.6.



     If a successor Trustee is appointed, the Company, the retiring Trustee and the successor
Trustee shall execute and deliver an indenture supplemental hereto which 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 Debentures as to which the predecessor
Trustee is not retiring shall continue to be vested in the predecessor Trustee, and 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 Trust hereunder by more than one Trustee, it being understood that
nothing herein or in such supplemental indenture shall constitute such Trustees co-trustees of the
same trust 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.



     No successor Trustee shall accept appointment as provided in this Section unless at the time
of such acceptance such successor Trustee shall be eligible under the provisions of Section 6.8.



     In no event shall a retiring Trustee be liable for the acts or omissions of any successor
Trustee hereunder.



     Upon acceptance of appointment by a successor Trustee as provided in this Section 6.10, the
Company shall mail notice of the succession of such Trustee hereunder to the holders of Debentures
at their addresses as they shall appear on the Debenture Register. If the Company fails to mail
such notice within 10 Business Days after the acceptance of appointment by the successor Trustee,
the successor Trustee shall cause such notice to be mailed at the expense of the Company.



     Section 6.11 Succession by Merger, etc. Any corporation or other entity into which the Trustee may be
merged or converted or with which it may be consolidated, or any corporation or other entity
resulting from any merger, conversion or consolidation to which the Trustee shall be a party, or
any corporation or other entity succeeding to all or substantially all of the corporate trust
business of the Trustee, shall be the successor of the Trustee hereunder without the execution or
filing of any paper or any further act on the part of any of the parties hereto; provided
such entity shall be otherwise eligible and qualified under this Article.



     In case at the time such successor to the Trustee shall succeed to the trusts created by this
Indenture any of the Debentures shall have been authenticated but not delivered, any such successor
to the Trustee may adopt the certificate of authentication of any predecessor Trustee, and deliver
such Debentures so authenticated; and in case at that time any of the Debentures shall not have
been authenticated, any successor to the Trustee may authenticate such Debentures



37









 







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 Debentures 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 authenticate Debentures in the name of any predecessor Trustee shall apply only to its
successor or successors by merger, conversion or consolidation.



     Section 6.12 Authenticating Agents. There may be one or more Authenticating Agents appointed by the
Trustee upon the request of the Company with power to act on its behalf and subject to its
direction in the authentication and delivery of Debentures issued upon exchange or registration of
transfer thereof as fully to all intents and purposes as though any such Authenticating Agent had
been expressly authorized to authenticate and deliver Debentures; provided,
however, that the Trustee shall have no liability to the Company for any acts or omissions
of the Authenticating Agent with respect to the authentication and delivery of Debentures. Any such
Authenticating Agent shall at all times be a corporation organized and doing business under the
laws of the United States or of any state or territory thereof or of the District of Columbia
authorized under such laws to act as Authenticating Agent, having a combined capital and surplus of
at least $50,000,000.00 and being subject to supervision or examination by federal, state,
territorial or District of Columbia authority. If such corporation publishes reports of condition
at least annually pursuant to law or the requirements of such authority, then for the purposes of
this Section 6.12 the combined capital and surplus of such corporation shall be deemed to be its
combined capital and surplus as set forth in its most recent report of condition so published. If
at any time 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 herein specified in
this Section.



     Any corporation into which any Authenticating Agent may be merged or converted or with which
it may be consolidated, or any corporation resulting from any merger, consolidation or conversion
to which any Authenticating Agent shall be a party, or any corporation succeeding to all or
substantially all of the corporate trust business of any Authenticating Agent, shall be the
successor of such Authenticating Agent hereunder, if such successor corporation is otherwise
eligible under this Section 6.12 without the execution or filing of any paper or any further act on
the part of the parties hereto or such Authenticating Agent.



     Any Authenticating Agent may at any time resign by giving written notice of resignation to the
Trustee and to the Company. The Trustee may at any time terminate the agency of any Authenticating
Agent with respect to the Debentures by giving written notice of termination 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 any Authenticating Agent shall cease to be eligible under this Section 6.12,
the Trustee may, and upon the request of the Company shall, promptly appoint a successor
Authenticating Agent eligible under this Section 6.12, shall give written notice of such
appointment to the Company and shall mail notice of such appointment to
all holders of Debentures as the names and addresses of such holders appear on the Debenture
Register. Any successor Authenticating Agent upon acceptance of its appointment hereunder shall
become vested with all rights, powers, duties and responsibilities with respect to the Debentures
of its predecessor hereunder, with like effect as if originally named as Authenticating Agent
herein.



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     The Company agrees to pay to any Authenticating Agent from time to time reasonable
compensation for its services. Any Authenticating Agent shall have no responsibility or liability
for any action taken by it as such in accordance with the directions of the Trustee.



ARTICLE VII




CONCERNING THE SECURITYHOLDERS


     Section 7.1 Action by Securityholders. Whenever in this Indenture it is provided that the holders of a
specified percentage in aggregate principal amount of the Debentures may take any action (including
the making of any demand or request, the giving of any notice, consent or waiver or the taking of
any other action) the fact that at the time of taking any such action the holders of such specified
percentage have joined therein may be evidenced (a) by any instrument or any number of instruments
of similar tenor executed by such Securityholders in person or by agent or proxy appointed in
writing, or (b) by the record of such holders of Debentures voting in favor thereof at any meeting
of such Securityholders duly called and held in accordance with the provisions of Article VIII, or
(c) by a combination of such instrument or instruments and any such record of such a meeting of
such Securityholders or (d) by any other method the Trustee deems satisfactory.




     If the Company shall solicit from the Securityholders any request, demand, authorization,
direction, notice, consent, waiver or other action or revocation of the same, the Company may, at
its option, as evidenced by an Officers’ Certificate, fix in advance a record date for such
Debentures for the determination of Securityholders entitled to give such request, demand,
authorization, direction, notice, consent, waiver or other action or revocation of the same, but
the Company shall have no obligation to do so. If such a record date is fixed, such request,
demand, authorization, direction, notice, consent, waiver or other action or revocation of the same
may be given before or after the record date, but only the Securityholders of record at the close
of business on the record date shall be deemed to be Securityholders for the purposes of
determining whether Securityholders of the requisite proportion of outstanding Debentures have
authorized or agreed or consented to such request, demand, authorization, direction, notice,
consent, waiver or other action or revocation of the same, and for that purpose the outstanding
Debentures shall be computed as of the record date; provided, however, that no such
authorization, agreement or consent by such Securityholders on the record date shall be deemed
effective unless it shall become effective pursuant to the provisions of this Indenture not later
than 6 months after the record date.


     Section 7.2 Proof of Execution by Securityholders. Subject to the provisions of Section 6.1, 6.2 and
8.5, proof of the execution of any instrument by a Securityholder or his agent or proxy shall be
sufficient if made in accordance with such reasonable rules and regulations as may be prescribed by
the Trustee or in such manner as shall be satisfactory to the
Trustee. The ownership of Debentures shall be proved by the Debenture Register or by a certificate
of the Debenture registrar. The Trustee may require such additional proof of any matter referred to
in this Section as it shall deem necessary.




     The record of any Securityholders’ meeting shall be proved in the manlier provided in Section
8.6.



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     Section 7.3 Who Are Deemed Absolute Owners. Prior to due presentment for registration of transfer of
any Debenture, the Company, the Trustee, any Authenticating Agent, any paying agent, any transfer
agent and any Debenture registrar may deem the Person in whose name such Debenture shall be
registered upon the Debenture Register to be, and may treat him as, the absolute owner of such
Debenture (whether or not such Debenture shall be overdue) for the purpose of receiving payment of
or on account of the principal of, premium, if any, and interest on such Debenture and for all
other purposes; and neither the Company nor the Trustee nor any Authenticating Agent nor any paying
agent nor any transfer agent nor any Debenture registrar shall be affected by any notice to the
contrary. All such payments so made to any holder for the time being or upon his order shall be
valid, and, to the extent of the sum or sums so paid, effectual to satisfy and discharge the
liability for moneys payable upon any such Debenture.



     Section 7.4 Debentures Owned by Company Deemed Not Outstanding. In determining whether the holders of
the requisite aggregate principal amount of Debentures have concurred in any direction, consent or
waiver under this Indenture, Debentures which are owned by the Company or any other obligor on the
Debentures or by any Person directly or indirectly controlling or controlled by or under direct or
indirect common control with the Company or any other obligor on the Debentures shall be
disregarded and deemed not to be outstanding for the purpose of any such determination;
provided, however, that for the purposes of determining whether the Trustee shall
be protected in relying on any such direction, consent or waiver, only Debentures which a
Responsible Officer of the Trustee actually knows are so owned shall be so disregarded. Debentures
so owned which have been pledged in good faith may be regarded as outstanding for the purposes of
this Section 7.4 if the pledgee shall establish to the satisfaction of the Trustee the pledge’s
right to vote such Debentures and that the pledgee is not the Company or any such other obligor or
Person directly or indirectly controlling or controlled by or under direct or indirect common
control with the Company or any such other obligor. In the case of a dispute as to such right, any
decision by the Trustee taken upon the advice of counsel shall be full protection to the Trustee.



     Section 7.5 Revocation of Consents; Future Holders Bound. At any time prior to (but not after) the
evidencing to the Trustee, as provided in Section 7.1, of the taking of any action by the holders
of the percentage in aggregate principal amount of the Debentures specified in this Indenture in
connection with such action, any holder (in cases where no record date has been set pursuant to
Section 7.1) or any holder as of an applicable record date (in cases where a record date has been
set pursuant to Section 7.1) of a Debenture (or any Debenture issued in whole or in part in
exchange or substitution therefor) the serial number of which is shown by the evidence to be
included in the Debentures the holders of which have consented to such action may, by filing
written notice with the Trustee at the Principal Office of the Trustee and upon proof of holding as
provided in Section 7.2, revoke such action so far as concerns such Debenture (or so far as
concerns the principal amount represented by any exchanged or
substituted Debenture). Except as aforesaid any such action taken by the holder of any Debenture
shall be conclusive and binding upon such holder and upon all future holders and owners of such
Debenture, and of any Debenture issued in exchange or substitution therefor or on registration of
transfer thereof, irrespective of whether or not any notation in regard thereto is made upon such
Debenture or any Debenture issued in exchange or substitution therefor.



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ARTICLE VIII




SECURITYHOLDERS’ MEETINGS



     Section 8.1 Purposes of Meetings. A meeting of Securityholders may be called at any time and from time
to time pursuant to the provisions of this Article VIII for any of the following purposes:



     (a) to give any notice to the Company or to the Trustee, or to give any directions to the
Trustee, or to consent to the waiving of any default hereunder and its consequences, or to take any
other action authorized to be taken by Securityholders pursuant to any of the provisions of Article
V;



     (b) to remove the Trustee and nominate a successor trustee pursuant to the revisions of
Article VI;



     (c) to consent to the execution of an indenture or indentures supplemental hereto pursuant to
the provisions of Section 9.2; or



     (d) to take any other action authorized to be taken by or on behalf of the holders of any
specified aggregate principal amount of such Debentures under any other provision of this Indenture
or under applicable law.



     Section 8.2 Call of Meetings by Trustee. The Trustee may at any time call a meeting of Securityholders
to take any action specified in Section 8.1, to be held at such time and at such place as the
Trustee shall determine. Notice of every meeting of the Securityholders, setting forth the time and
the place of such meeting and in general terms the action proposed to be taken at such meeting,
shall be mailed to holders of Debentures affected at their addresses as they shall appear on the
Debentures Register and, if the Company is not a holder of Debentures, to the Company. Such notice
shall be mailed not less than 20 nor more than 180 days prior to the date fixed for the meeting.



     Section 8.3 Call of Meetings by Company or Securityholders. In case at any time the Company pursuant to
a Board Resolution, or the holders of at least 10% in aggregate principal amount of the Debentures,
as the case may be, then outstanding, shall have requested the Trustee to call a meeting of
Securityholders, by written request setting forth in reasonable detail the action proposed to be
taken at the meeting, and the Trustee shall not have mailed the notice of such meeting within 20
days after receipt of such request, then the Company or such Securityholders may determine the time
and the place for such meeting and may call such meeting to take any action authorized in Section
8.1, by mailing notice thereof as provided in Section 8.2.



     Section 8.4 Qualifications for Voting. To be entitled to vote at any meeting of Securityholders a
Person shall (a) be a holder of one or more Debentures with respect to which the meeting is being
held or (b) a Person appointed by an instrument in writing as proxy by a holder of one or more such
Debentures. The only Persons who shall be entitled to be present or to speak at any meeting of
Securityholders shall be the Persons entitled to vote at such meeting



41









 







and their counsel and any
representatives of the Trustee and its counsel and any representatives of the Company and its
counsel.



     Section 8.5 Regulations. Notwithstanding any other provisions of this Indenture, the Trustee may make
such reasonable regulations as it may deem advisable for any meeting of Securityholders, in regard
to proof of the holding of Debentures and of the appointment of proxies, and in regard to the
appointment and duties of inspectors of votes, the submission and examination of proxies,
certificates and other evidence of the right to vote, and such other matters concerning the conduct
of the meeting as it shall think fit.



     The Trustee shall, by an instrument in writing, appoint a temporary chairman of the meeting,
unless the meeting shall have been called by the Company or by Securityholders as provided in
Section 8.3, in which case the Company or the Securityholders calling the meeting, as the case may
be, shall in like manner appoint a temporary chairman. A permanent chairman and a permanent
secretary of the meeting shall be elected by majority vote of the meeting.



     Subject to the provisions of Section 7.4, at any meeting each holder of Debentures with
respect to which such meeting is being held or proxy therefor shall be entitled to one vote for
each $1,000.00 principal amount of Debentures held or represented by him; provided,
however, that no vote shall be cast or counted at any meeting in respect of any Debenture
challenged as not outstanding and ruled by the chairman of the meeting to be not outstanding. The
chairman of the meeting shall have no right to vote other than by virtue of Debentures held by him
or instruments in writing as aforesaid duly designating him as the Person to vote on behalf of
other Securityholders. Any meeting of Securityholders duly called pursuant to the provisions of
Section 8.2 or 8.3 may be adjourned from time to time by a majority of those present, whether or
not constituting a quorum, and the meeting may be held as so adjourned without further notice.



     Section 8.6 Voting. The vote upon any resolution submitted to any meeting of holders of Debentures with
respect to which such meeting is being held shall be by written ballots on which shall be
subscribed the signatures of such holders or of their representatives by proxy and the serial
number or numbers of the Debentures held or represented by them. The permanent chairman of the
meeting shall appoint two inspectors of votes who shall count all votes cast at the meeting for or
against any resolution and who shall make and file with the secretary of the meeting their verified
written reports in triplicate of all votes cast at the meeting. A record in duplicate of the
proceedings of each meeting of Securityholders shall be prepared by the secretary of the meeting
and there shall be attached to said record the original reports of the inspectors of votes on any
vote by ballot taken thereat and affidavits by one or more Persons having knowledge of the facts
setting forth a copy of the notice of the meeting and showing that said notice was mailed as
provided in Section 8.2. The record shall show the serial numbers of the Debentures voting in favor
of or against any resolution. The record shall be signed and verified by the affidavits of the
permanent chairman and secretary of the meeting and one of the
duplicates shall be delivered to the Company and the other to the Trustee to be preserved by the
Trustee, the latter to have attached thereto the ballots voted at the meeting.



     Any record so signed and verified shall be conclusive evidence of the matters therein stated.



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     Section 8.7 Quorum; Actions. The Persons entitled to vote a majority in principal amount of the
Debentures shall constitute a quorum for a meeting of Securityholders; provided,
however, that if any action is to be taken at such meeting with respect to a consent,
waiver, request, demand, notice, authorization, direction or other action which may be given by the
holders of not less than a specified percentage in principal amount of the Debentures, the Persons
holding or representing such specified percentage in principal amount of the Debentures will
constitute a quorum. In the absence of a quorum within 30 minutes of the time appointed for any
such meeting, the meeting shall, if convened at the request of Securityholders, be dissolved. In
any other case the meeting may be adjourned for a period of not less than 10 days as determined by
the permanent chairman of the meeting prior to the adjournment of such meeting. In the absence of a
quorum at any such adjourned meeting, such adjourned meeting may be further adjourned for a period
of not less than 10 days as determined by the permanent chairman of the meeting prior to the
adjournment of such adjourned meeting. Notice of the reconvening of any adjourned meeting shall be
given as provided in Section 8.2, except that such notice need be given only once not less than 5
days prior to the date on which the meeting is scheduled to be reconvened. Notice of the
reconvening of an adjourned meeting shall state expressly the percentage, as provided above, of the
principal amount of the Debentures which shall constitute a quorum.



     Except as limited by the proviso in the first paragraph of Section 9.2, any resolution
presented to a meeting or adjourned meeting duly reconvened at which a quorum is present as
aforesaid may be adopted by the affirmative vote of the holders of a majority in principal amount
of the Debentures; provided, however, that, except as limited by the proviso in the
first paragraph of Section 9.2, any resolution with respect to any consent, waiver, request,
demand, notice, authorization, direction or other action which this Indenture expressly provides
may be given by the holders of not less than a specified percentage in principal amount of the
Debentures may be adopted at a meeting or an adjourned meeting duly reconvened and at which a
quorum is present as aforesaid only by the affirmative vote of the holders of a not less than such
specified percentage in principal amount of the Debentures.



     Any resolution passed or decision taken at any meeting of holders of Debentures duly held in
accordance with this Section shall be binding on all the Securityholders, whether or not present or
represented at the meeting.



ARTICLE IX




SUPPLEMENTAL INDENTURES



     Section 9.1 Supplemental Indentures without Consent of Securityholders. The Company, when authorized by
a Board Resolution, and the Trustee may from time to time and at
any time enter into an indenture or indentures supplemental hereto, without the consent of the
Securityholders, for one or more of the following purposes:



     (a) to evidence the succession of another Person to the Company, or successive successions,
and the assumption by the successor Person of the covenants, agreements and obligations of the
Company, pursuant to Article XI hereof;



43









 





     (b) to add to the covenants of the Company such further covenants, restrictions or conditions
for the protection of the holders of Debentures as the Board of Directors shall consider to be for
the protection of the holders of such Debentures, and to make the occurrence, or the occurrence and
continuance, of a default in any of such additional covenants, restrictions or conditions a default
or an Event of Default permitting the enforcement of all or any of the several remedies provided in
this Indenture as herein set forth; provided, however, that in respect of any such
additional covenant restriction or condition such supplemental indenture may provide for a
particular period of grace after default (which period may be shorter or longer than that allowed
in the case of other defaults) or may provide for an immediate enforcement upon such default or may
limit the remedies available to the Trustee upon such default;



     (c) to cure any ambiguity or to correct or supplement any provision contained herein or in any
supplemental indenture which may be defective or inconsistent with any other provision contained
herein or in any supplemental indenture, or to make such other provisions in regard to matters or
questions arising under this Indenture; provided that any such action shall not materially
adversely affect the interests of the holders of the Debentures;



     (d) to add to, delete from, or revise the terms of Debentures, including, without limitation,
any terms relating to the issuance, exchange, registration or transfer of Debentures, including to
provide for transfer procedures and restrictions substantially similar to those applicable to the
Capital Securities as required by Section 2.5 (for purposes of assuring that no registration of
Debentures is required under the Securities Act of 1933, as amended); provided,
however, that any such action shall not adversely affect the interests of the holders of
the Debentures then outstanding (it being understood, for purposes of this proviso, that transfer
restrictions on Debentures substantially similar to those that were applicable to Capital
Securities shall not be deemed to materially adversely affect the holders of the Debentures);



     (e) to evidence and provide for the acceptance of appointment hereunder by a successor Trustee
with respect to the Debentures 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 6.11;



     (f) to make any change (other than as elsewhere provided in this paragraph) that does not
adversely affect the rights of any Securityholder in any material respect; or



     (g) to provide for the issuance of and establish the form and terms and conditions of the
Debentures, to establish the form of any certifications required to be furnished pursuant to the
terms of this Indenture or the Debentures, or to add to the rights of the holders of Debentures.



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



44









 





     Any supplemental indenture authorized by the provisions of this Section 9.1 may be executed by
the Company and the Trustee without the consent of the holders of any of the Debentures at the time
outstanding, notwithstanding any of the provisions of Section 9.2.



     Section 9.2 Supplemental Indentures with Consent of Securityholders. With the consent (evidenced as
provided in Section 7.1) of the holders of not less than a majority in aggregate principal amount
of the Debentures at the time outstanding affected by such supplemental indenture (voting as a
class), the Company, when authorized by a Board Resolution, and the Trustee may from time to time
and at any time enter into an indenture or indentures supplemental hereto for the purpose of adding
any provisions to or changing in any manner or eliminating any of the provisions of this Indenture
or of any supplemental indenture or of modifying in any manner the rights of the holders of the
Debentures; provided, however, that no such supplemental indenture shall without
the consent of the holders of each Debenture then outstanding and affected thereby (i) change the
fixed maturity of any Debenture, or reduce the principal amount thereof or any premium thereon, or
reduce the rate or extend the time of payment of interest thereon, or reduce any amount payable on
redemption thereof or make the principal thereof or any interest or premium thereon payable in any
coin or currency other than that provided in the Debentures, or impair or affect the right of any
Securityholder to institute suit for payment thereof or impair the right of repayment, if any, at
the option of the holder, or (ii) reduce the aforesaid percentage of Debentures the holders of
which are required to consent to any such supplemental indenture; provided further,
however, that if the Debentures are held by a trust or a trustee of such trust, such
supplemental indenture shall not be effective until the holders of a majority in Liquidation Amount
of Trust Securities shall have consented to such supplemental indenture; provided
further, however, that if the consent of the Securityholder of each outstanding
Debenture is required, such supplemental indenture shall not be effective until each holder of the
Trust Securities shall have consented to such supplemental indenture.



     Upon the request of the Company accompanied by a Board Resolution authorizing the execution of
any such supplemental indenture, and upon the filing with the Trustee of evidence of the consent of
Securityholders as aforesaid, the Trustee shall join with the Company in the execution of such
supplemental indenture unless such supplemental indenture affects the Trustee’s own rights, duties
or immunities under this Indenture or otherwise, in which case the Trustee may in its discretion,
but shall not be obligated to, enter into such supplemental indenture.



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



     It shall not be necessary for the consent of the Securityholders under this Section 9.2 to
approve the particular form of any proposed supplemental indenture, but it shall be sufficient if
such consent shall approve the substance thereof.



45









 





     Section 9.3 Effect of Supplemental Indentures. Upon the execution of any supplemental indenture
pursuant to the provisions of this Article IX, this Indenture shall be and be deemed to be modified
and amended in accordance therewith and the respective rights, limitations of rights, obligations,
duties and immunities under this Indenture of the Trustee, the Company and the holders of
Debentures shall thereafter be determined, exercised and enforced hereunder subject in all respects
to such modifications and amendments and all the terms and conditions of any such supplemental
indenture shall be and be deemed to be part of the terms and conditions of this Indenture for any
and all purposes.



     Section 9.4 Notation on Debentures. Debentures authenticated and delivered after the execution of any
supplemental indenture pursuant to the provisions of this Article IX may bear a notation as to any
matter provided for in such supplemental indenture. If the Company or the Trustee shall so
determine, new Debentures so modified as to conform, in the opinion of the Board of Directors of
the Company, to any modification of this Indenture contained in any such supplemental indenture may
be prepared and executed by the Company, authenticated by the Trustee or the Authenticating Agent
and delivered in exchange for the Debentures then outstanding.



     Section 9.5 Evidence of Compliance of Supplemental Indenture to be Furnished to Trustee. The Trustee,
subject to the provisions of Sections 6.1 and 6.2, shall, in addition to the documents required by
Section 14.6, receive an Officers’ Certificate and an Opinion of Counsel as conclusive evidence
that any supplemental indenture executed pursuant hereto complies with the requirements of this
Article IX. The Trustee shall receive an Opinion of Counsel as conclusive evidence that any
supplemental indenture executed pursuant to this Article IX is authorized or permitted by, and
conforms to, the terms of this Article IX and that it is proper for the Trustee under the
provisions of this Article IX to join in the execution thereof.



ARTICLE X




REDEMPTION OF SECURITIES


     Section 10.1 Optional Redemption. The Company shall have the right (subject to the receipt by the
Company of prior approval (i) if the Company is a bank holding company, from the Federal Reserve,
if then required under applicable capital guidelines or policies or (ii) if the Company is a
savings and loan holding company, from the OTS if then required under applicable capital guidelines
or policies of the OTS), to redeem the Debentures, in whole or in part, but in all cases in a
principal amount with integral multiples of $1,000.00, on any July 31, October 31, January 31, or
April 30 on or after July 31, 2006 (the “Redemption Date”), at the Redemption Price.



     Section 10.2 Special Event Redemption. If a Special Event shall occur and be continuing, the Company
shall have the right (subject to the receipt by the Company of prior approval (i) if the Company is
a bank holding company, from the Federal Reserve if then
required under applicable capital guidelines or policies of the Federal Reserve or (ii) if the
Company is a savings and loan holding company, from the OTS if then required under applicable
capital guidelines or policies of the OTS) to redeem the Debentures in whole, but not in part, at


46









 






any Interest Payment Date, within 120 days following the occurrence of such Special Event (the
“Special Redemption Date”) at the Special Redemption Price.



     Section 10.3 Notice of Redemption; Selection of Debentures. In case the Company shall desire to exercise
the right to redeem all, or, as the case may be, any part of the Debentures, it shall cause to be
mailed a notice of such redemption at least 30 and not more than 60 days prior to the Redemption
Date or the Special Redemption Date to the holders of Debentures so to be redeemed as a whole or in
part at their last addresses as the same appear on the Debenture Register. Such mailing shall be by
first class mail. The notice if mailed in the mariner herein provided shall be conclusively
presumed to have been duly given, whether or not the holder receives such notice. In any case,
failure to give such notice by mail or any defect in the notice to the holder of any Debenture
designated for redemption as a whole or in part shall not affect the validity of the proceedings
for the redemption of any other Debenture.




     Each such notice of redemption shall specify the CUSIP number, if any, of the Debentures to be
redeemed, the Redemption Date or the Special Redemption Date, as applicable, the Redemption Price
or the Special Redemption Price, as applicable, at which Debentures are to be redeemed, the place
or places of payment, that payment will be made upon presentation and surrender of such Debentures,
that interest accrued to the date fixed for redemption will be paid as specified in said notice,
and that on and after said date interest thereon or on the portions thereof to be redeemed will
cease to accrue. If less than all the Debentures are to be redeemed the notice of redemption shall
specify the numbers of the Debentures to be redeemed. In case the Debentures are to be redeemed in
part only, the notice of redemption shall state the portion of the principal amount thereof to be
redeemed and shall state that on and after the date fixed for redemption, upon surrender of such
Debenture, a new Debenture or Debentures in principal amount equal to the unredeemed portion
thereof will be issued.



     Prior to 10:00 a.m. New York City time on the Redemption Date or Special Redemption Date, as
applicable, the Company will deposit with the Trustee or with one or more paying agents an amount
of money sufficient to redeem on the Redemption Date or the Special Redemption Date, as applicable,
all the Debentures so called for redemption at the appropriate Redemption Price or Special
Redemption Price, together with accrued interest to the Redemption Date or Special Redemption Date,
as applicable.



     If all, or less than all, the Debentures are to be redeemed, the Company will give the Trustee
notice not less than 45 nor more than 60 days, respectively, prior to the Redemption Date or
Special Redemption Date, as applicable, as to the aggregate principal amount of Debentures to be
redeemed and the Trustee shall select, in such manner as in its sole discretion it shall deem
appropriate and fair, the Debentures or portions thereof (in integral multiples of $1,000.00) to be
redeemed.



     Section 10.4 Payment of Debentures Called for Redemption. If notice of redemption has been given as
provided in Section 10.3, the Debentures or portions of Debentures with respect to which such
notice has been given shall become due and payable on the Redemption
Date or Special Redemption Date, as applicable, and at the place or places stated in such notice at
the applicable Redemption Price or Special Redemption Price, together with interest accrued to the
Redemption Date or Special Redemption Date, as applicable, and on and after said date



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(unless the
Company shall default in the payment of such Debentures at the Redemption Price or Special
Redemption Price, as applicable, together with interest accrued to said date) interest on the
Debentures or portions of Debentures so called for redemption shall cease to accrue. On
presentation and surrender of such Debentures at a place of payment specified in said notice, such
Debentures or the specified portions thereof shall be paid and redeemed by the Company at the
applicable Redemption Price or Special Redemption Price, together with interest accrued thereon to
the Redemption Date or Special Redemption Date, as applicable.



     Upon presentation of any Debenture redeemed in part only, the Company shall execute and the
Trustee shall authenticate and make available for delivery to the holder thereof, at the expense of
the Company, a new Debenture or Debentures of authorized denominations, in principal amount equal
to the unredeemed portion of the Debenture so presented.



ARTICLE XI




CONSOLIDATION, MERGER, SALE, CONVEYANCE AND LEASE 



     Section 11.1 Company May Consolidate, etc., on Certain Terms. Subject to this Article XI, nothing
contained in this Indenture or in the Debentures shall prevent any consolidation or merger of the
Company with or into any other Person (whether or not affiliated with the Company) or successive
consolidations or mergers in which the Company or its successor or successors shall be a party or
parties, or shall prevent any sale, conveyance, transfer or other disposition of the property of
the Company or its successor or successors as an entirety, or substantially as an entirety to any
other Person (whether or not affiliated with the Company, or its successor or successors)
authorized to acquire and operate the same; provided, however, that the Company
hereby covenants and agrees that, upon any such consolidation, merger (where the Company is not the
surviving corporation), sale, conveyance, transfer or other disposition, the due and punctual
payment of the principal of (and premium, if any) and interest on all of the Debentures in
accordance with their terms, according to their tenor, and the due and punctual performance and
observance of all the covenants and conditions of this Indenture to be kept or performed by the
Company, shall be expressly assumed by supplemental indenture satisfactory in form to the Trustee
executed and delivered to the Trustee by the entity formed by such consolidation, or into which the
Company shall have been merged, or by the entity which shall have acquired such property.



     Section 11.2 Transfer of Capital Stock of First Alliance. Nothing contained in this Indenture or in the
Debentures shall prohibit the transfer by the Company of all of the capital stock of First Alliance
Bank, a federal savings bank, to a wholly-owned intermediate subsidiary of the Company (the
“Intermediate Subsidiary”). Upon such transfer, the Intermediate Subsidiary may, at the
Company’s option, assume the rights, duties and obligations of the Company hereunder. If the
Company so elects to assign its rights, duties and obligations under this Indenture, (i) the
Company and the Intermediate Subsidiary shall enter into any and all transfer and assignment
documents required of a successor under this Indenture, and the Declaration, including, without
limitation, a supplemental indenture in accordance with Section 11.1, (ii) the
Company shall transfer all of the Common Securities to the Intermediate Subsidiary, and (iii) the
Intermediate Subsidiary shall become an additional guarantor under the guarantee agreement, dated
as of the date hereof, by the Company, as guarantor, and State Street Bank and Trust



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Company of
Connecticut, National Association, as trustee (the “Guarantee Agreement”) by means of a
joinder agreement and, pursuant to such agreement, the Company and the Intermediate Subsidiary
shall agree to be jointly and severally liable as guarantors under the Guarantee Agreement.



     Section 11.3 Successor Entity to be Substituted. In case of any such consolidation, merger, sale,
conveyance, transfer or other disposition contemplated by Sections 11.1 or 11.2 and upon the
assumption by the successor entity, by supplemental indenture, executed and delivered to the
Trustee and satisfactory in form to the Trustee, of the due and punctual payment of the principal
of and premium, if any, and interest on all of the Debentures and the due and punctual performance
and observance of all of the covenants and conditions of this Indenture to be performed or observed
by the Company, such successor entity shall succeed to and be substituted for the Company, with the
same effect as if it had been named herein as the Company, and thereupon the predecessor entity
shall be relieved of any further liability or obligation hereunder or upon the Debentures, except
as set forth in Section 11.2(iii). Such successor entity thereupon may cause to be signed, and may
issue in its own name, any or all of the Debentures issuable hereunder which theretofore shall not
have been signed by the Company and delivered to the Trustee or the Authenticating Agent; and, upon
the order of such successor entity instead of the Company and subject to all the terns, conditions
and limitations in this Indenture prescribed, the Trustee or the Authenticating Agent shall
authenticate and deliver any Debentures which previously shall have been signed and delivered by
the officers of the Company, to the Trustee or the Authenticating Agent for authentication, and any
Debentures which such successor entity thereafter shall cause to be signed and delivered to the
Trustee or the Authenticating Agent for that purpose. All the Debentures so issued shall in all
respects have the same legal rank and benefit under this Indenture as the Debentures theretofore or
thereafter issued in accordance with the terms of this Indenture as though all of such Debentures
had been issued at the date of the execution hereof.



     Section 11.4 Opinion of Counsel to be Given to Trustee. The Trustee, subject to the provisions of
Sections 6.1 and 61, shall receive, in addition to the Opinion of Counsel required by Section 9.5,
an Opinion of Counsel as conclusive evidence that any consolidation, merger, sale, conveyance,
transfer or other disposition, and any assumption, permitted or required by the terms of this
Article XI complies with the provisions of this Article XI.



ARTICLE XII




SATISFACTION AND DISCHARGE OF INDENTURE



     Section 12.1 Discharge of Indenture. When




	 	(a)	 	the Company shall deliver to the Trustee for cancellation all Debentures
theretofore authenticated (other than any Debentures which shall have been destroyed,
lost or stolen and which shall have been replaced or paid as provided in Section 2.6)
and not theretofore canceled, or
	 
	 	(b)	 	all the Debentures not theretofore canceled or delivered to the Trustee for
cancellation shall have become due and payable, or are by their terms to become




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	 	 	 	due and
payable within 1 year or are to be called for redemption within 1 year under
arrangements satisfactory to the Trustee for the giving of notice of redemption, and
the Company shall deposit with the Trustee, in trust, funds, which shall be immediately
due and payable, sufficient to pay at maturity or upon redemption all of the Debentures
(other than any Debentures which shall have been destroyed, lost or stolen and which
shall have been replaced or paid as provided in Section 2.6) not theretofore canceled
or delivered to the Trustee for cancellation, including principal and premium, if any,
and interest due or to become due to such date of maturity or redemption date, as the
case may be, but excluding, however, the amount of any moneys for the payment of
principal of, and premium, if any, or interest on the Debentures (1) theretofore repaid
to the Company in accordance with the provisions of Section 12.4, or (2) paid to any
state or to the District of Columbia pursuant to its unclaimed property or similar
laws,




and if in the case of either clause (a) or clause (b) the Company shall also pay or cause to be
paid all other sums payable hereunder by the Company, then this Indenture shall cease to be of
further effect except for the provisions of Sections 2.5, 2.6, 2.8, 3.1, 3.2, 3.4, 6.6, 6.8, 6.9
and 12.4 hereof shall survive until such Debentures shall mature and be paid. Thereafter, Sections
6.6 and 12.4 shall survive, and the Trustee, on demand of the Company accompanied by an Officers’
Certificate and an Opinion of Counsel, each stating that all conditions precedent herein provided
for relating to the satisfaction and discharge of this Indenture have been complied with, and at
the cost and expense of the Company, shall execute proper instruments acknowledging satisfaction of
and discharging this Indenture. The Company agrees to reimburse the Trustee for any costs or
expenses thereafter reasonably and properly incurred by the Trustee in connection with this
Indenture or the Debentures.




     Section 12.2 Deposited Moneys to be Held in Trust by Trustee. Subject to the provisions of Section 12.4,
all moneys deposited with the Trustee pursuant to Section 12.1 shall be held in trust in a
non-interest bearing account and applied by it to the payment, either directly or through any
paying agent (including the Company if acting as its own paying agent), to the holders of the
particular Debentures for the payment of which such moneys have been deposited with the Trustee, of
all sums due and to become due thereon for principal, and premium, if any, and interest.



     Section 12.3 Paying Agent to Repay Moneys Held. Upon the satisfaction and discharge of this Indenture
all moneys then held by any paying agent of the Debentures (other than the Trustee) shall, upon
demand of the Company, be repaid to it or paid to the Trustee, and thereupon such paying agent
shall be released from all further liability with respect to such moneys.



     Section 12.4 Return of Unclaimed Moneys. Any moneys deposited with or paid to the Trustee or any paying
agent for payment of the principal of, and premium, if any, or interest on Debentures and not
applied but remaining unclaimed by the holders of Debentures for 2 years after the date upon which
the principal of, and premium, if any, or interest on such Debentures,
as the case may be, shall have become due and payable, shall, subject to applicable escheatment
laws, be repaid to the Company by the Trustee or such paying agent on written demand; and the



50









 







holder of any of the Debentures shall thereafter look only to the Company for any payment which
such holder may be entitled to collect, and all liability of the Trustee or such paying agent with
respect to such moneys shall thereupon cease.



ARTICLE XIII




IMMUNITY OF INCORPORATORS, STOCKHOLDERS,

OFFICERS AND DIRECTORS 


     Section 13.1 Indenture and Debentures Solely Corporate Obligations. No recourse for the payment of the
principal of or premium, if any, or interest on any Debenture, or for any claim based thereon or
otherwise in respect thereof, and no recourse under or upon any obligation, covenant or agreement
of the Company in this Indenture or in any supplemental indenture, or in any such Debenture, or
because of the creation of any indebtedness represented thereby, shall be had against any
incorporator, stockholder, employee, officer or director, as such, past, present or future, of the
Company or of any successor Person of the Company, either directly or through the Company or any
successor Person of 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
all such liability is hereby expressly waived and released as a condition of, and as a
consideration for, the execution of this Indenture and the issue of the Debentures.




ARTICLE XIV




MISCELLANEOUS PROVISIONS



     Section 14.1 Successors. All the covenants, stipulations, promises and agreements in this Indenture
contained by the Company shall bind its successors and assigns whether so expressed or not.



     Section 14.2 Official Acts by Successor Entity. Any act or proceeding by any provision of this Indenture
authorized or required to be done or performed by any board, committee or officer of the Company
shall and may be done and performed with like force and effect by the like board. committee,
officer or other authorized Person of any entity that shall at the time be the lawful successor of
the Company.



     Section 14.3 Surrender of Company Powers. The Company by instrument in writing executed by authority of
at least 2/3 (two-thirds) of its Board of Directors and delivered to the Trustee may surrender any
of the powers reserved to the Company and thereupon such power so surrendered shall terminate both
as to the Company, and as to any permitted successor.



     Section 14.4 Addresses for Notices, etc. Any notice, consent, direction, request, authorization, waiver
or demand which by any provision of this Indenture is required or permitted to be given, made,
furnished or served by the Trustee or by the Securityholders on or to the Company may be given or
served in writing by being deposited postage prepaid by
registered or certified mail in a post office letter box addressed (until another address is filed
by the Company, with the Trustee for the purpose) to the Company, 8100 Nations Way, Jacksonville,
Florida 32256, Attention: Terence G. Vane, Jr. Any notice, consent, direction,



51









 







request,
authorization, waiver or demand by any Securityholder or the Company to or upon the Trustee shall
be deemed to have been sufficiently given or made, for all purposes, if given or made in writing at
the office of the Trustee, addressed to the Trustee, 225 Asylum Street, Goodwin Square, Hartford,
Connecticut, 06103 Attention: Vice President, Corporate Trust Department, with a copy to State
Street Bank and Trust Company, P.O. Box 778, Boston, Massachusetts 02102-0778, Attention: Paul D.
Allen, Corporate Trust Department. Any notice, consent, direction, request, authorization, waiver
or demand on or to any Securityholder shall be deemed to have been sufficiently given or made, for
all purposes, if given or made in writing at the address set forth in the Debenture Register.



     Section 14.5 Governing Law. This Indenture and each Debenture shall be deemed to be a contract made
under the law of the State of New York, and for all purposes shall be governed by and construed in
accordance with the law of said State, without regard to conflict of laws principles thereof.



     Section 14.6 Evidence of Compliance with Conditions Precedent. Upon any application or demand by the
Company to the Trustee to take any action under any of the provisions of this Indenture, the
Company shall furnish to the Trustee an Officers’ Certificate stating that in the opinion of the
signers all conditions precedent, if any, provided for in this Indenture relating to the proposed
action have been complied with and an Opinion of Counsel stating that, in the opinion of such
counsel, all such conditions precedent have been complied with.



     Each certificate or opinion provided for in this Indenture and delivered to the Trustee with
respect to compliance with a condition or covenant provided for in this Indenture shall include (1)
a statement that the person mating such certificate or opinion has read such covenant or condition;
(2) a brief statement as to the nature and scope of the examination or investigation upon which the
statements or opinions contained in such certificate or opinion are based; (3) a statement that, in
the opinion of such person, he has made such examination or investigation as is necessary to enable
him to express an informed opinion as to whether or not such covenant or condition has been
complied with; and (4) a statement as to whether or not in the opinion of such person, such
condition or covenant has been complied with.



     Section 14.7 Non-Business Days. In any case where the date of payment of interest on or principal of the
Debentures will be a day that is not a Business Day, the payment of such interest on or principal
of the Debentures need not be made on such date but may be made on the next succeeding Business
Day, except that, if such Business Day is in the next succeeding calendar year, such payment shall
be made on the immediately preceding Business Day, in each case with the same force and effect as
if made on the original date of payment, and no interest shall accrue for the period from and after
such date.



     Section 14.8 Table of Contents, Headings, etc. The table of contents and the titles and headings of the
articles and sections of this Indenture have been inserted for convenience of
reference only, are not to be considered a part hereof, and shall in no way modify or restrict any
of the terms or provisions hereof.



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     Section 14.9 Execution in Counterparts. This Indenture may be executed in any number of counterparts,
each of which shall be an original, but such counterparts shall together constitute but one and the
same instrument.



     Section 14.10 Separability. In case any one or more of the provisions contained in this Indenture or in
the Debentures shall for any reason be held to be invalid, illegal or unenforceable in any respect,
such invalidity, illegality or unenforceability shall not affect any other provisions of this
Indenture or of such Debentures, but this Indenture and such Debentures shall be construed as if
such invalid or illegal or unenforceable provision had never been contained herein or therein.



     Section 14.11 Assignment. The Company will have the right at all times to assign any of its rights or
obligations under this Indenture to a direct or indirect wholly owned Subsidiary of the Company,
provided that, in the event of any such assignment, the Company will remain liable for all such
obligations. Subject to the foregoing, this Indenture is binding upon and inures to the benefit of
the parties hereto and their respective successors and assigns. This Indenture may not otherwise be
assigned by the parties hereto.



     Section 14.12 Acknowledgment of Rights. The Company agrees that, with respect to any Debentures held by
the Trust or the Institutional Trustee of the Trust, if the Institutional Trustee of the Trust
fails to enforce its rights under this Indenture as the holder of Debentures held as the assets of
such Trust after the holders of a majority in Liquidation Amount of the Capital Securities of such
Trust have so directed such Institutional Trustee, a holder of record of such Capital Securities
may, to the fullest extent permitted by law, institute legal proceedings directly against the
Company to enforce such Institutional Trustee’s rights under this Indenture without first
instituting any legal proceedings against such trustee or any other Person. Notwithstanding the
foregoing, if an Event of Default has occurred and is continuing and such event is attributable to
the failure of the Company to pay interest (or premium, if any) or principal on the Debentures on
the date such interest (or premium, if any) or principal is otherwise payable (or in the case of
redemption, on the redemption date), the Company agrees that a holder of record of Capital
Securities of the Trust may directly institute a proceeding against the Company for enforcement of
payment to such holder directly of the principal of (or premium, if any) or interest on the
Debentures having an aggregate principal amount equal to the aggregate Liquidation Amount of the
Capital Securities of such holder on or after the respective due date specified in the Debentures.



ARTICLE XV




SUBORDINATION OF DEBENTURES



     Section 15.1 Agreement to Subordinate. The Company covenants and agrees, and each holder of Debentures
by such Securityholder’s acceptance thereof likewise covenants and agrees, that all Debentures
shall be issued subject to the provisions of this Article XV; and each
holder of a Debenture, whether upon original issue or upon transfer or assignment thereof, accepts
and agrees to be bound by such provisions.



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     The payment by the Company of the principal of, and premium, if any, and interest on all
Debentures shall, to the extent and in the manner hereinafter set forth, be subordinated and junior
in right of payment to the prior payment in full of all Senior Indebtedness of the Company, whether
outstanding at the date of this Indenture or thereafter incurred; provided,
however, that the Debt Securities shall rank pari passu in right of payment with the
Company’s 10.25% Junior Subordinated Deferrable Interest Debt Securities due July 15, 2031 issued
pursuant to an Indenture dated as of July 16, 2001 by and between the Company and the Bank of New
York.



     No provision of this Article XV shall prevent the occurrence of any default or Event of
Default hereunder.



     Section 15.2 Default on Senior Indebtedness. In the event and during the continuation of any default by
the Company in the payment of principal, premium, interest or any other payment due on any Senior
Indebtedness of the Company following any grace period, or in the event that the maturity of any
Senior Indebtedness of the Company has been accelerated because of a default, then, in either case,
no payment shall be made by the Company with respect to the principal (including redemption) of, or
premium, if any, or interest on the Debentures.



     In the event that, notwithstanding the foregoing, any payment shall be received by the Trustee
when such payment is prohibited by the preceding paragraph of this Section 15.2, such payment
shall, subject to Section 15.7, be held in trust for the benefit of, and shall be paid over or
delivered to, the holders of Senior Indebtedness or their respective representatives, or to the
trustee or trustees under any indenture pursuant to which any of such Senior Indebtedness may have
been issued, as their respective interests may appear, but only to the extent that the holders of
the Senior Indebtedness (or their representative or representatives or a trustee) notify the
Trustee in writing within 90 days of such payment of the amounts then due and owing on the Senior
Indebtedness and only the amounts specified in such notice to the Trustee shall be paid to the
holders of Senior Indebtedness.



     Section 15.3 Liquidation, Dissolution, Bankruptcy. Upon any payment by the Company or distribution of
assets of the Company of any kind or character, whether in cash, property or securities, to
creditors upon any dissolution or winding-up or liquidation or reorganization of the Company,
whether voluntary or involuntary or in bankruptcy, insolvency, receivership or other proceedings,
all amounts due upon all Senior Indebtedness of the Company shall first be paid in full, or payment
thereof provided for in money in accordance with its terms, before any payment is made by the
Company, on account of the principal (and premium, if any) or interest on the Debentures. Upon any
such dissolution or winding-up or liquidation or reorganization, any payment by the Company, or
distribution of assets of the Company of any kind or character, whether in cash, property or
securities, which the Securityholders or the Trustee would be entitled to receive from the Company,
except for the provisions of this Article XV, shall be paid by the Company, or by any receiver,
trustee in bankruptcy, liquidating trustee, agent or other Person making such payment or
distribution, or by the Securityholders or by the Trustee under this Indenture if received by them
or it, directly to the holders of Senior Indebtedness (pro rata to such holders on the basis of the
respective amounts of Senior
Indebtedness held by such holders, as calculated by the Company) or their representative or
representatives, or to the trustee or trustees under any indenture pursuant to which any
instruments evidencing such Senior Indebtedness may have been issued, as their respective



54









 







interests may appear, to the extent necessary to pay such Senior Indebtedness in full, in money or money’s
worth, after giving effect to any concurrent payment or distribution to or for the holders of such
Senior Indebtedness, before any payment or distribution is made to the Securityholders or to the
Trustee.



     In the event that, notwithstanding the foregoing, any payment or distribution of assets of the
Company of any kind or character, whether in cash, property or securities, prohibited by the
foregoing, shall be received by the Trustee before all Senior Indebtedness is paid in full, or
provision is made for such payment in money in accordance with its terms, such payment or
distribution shall be held in trust for the benefit of and shall be paid over or delivered to the
holders of such Senior Indebtedness or their representative or representatives, or to the trustee
or trustees under any indenture pursuant to which any instruments evidencing such Senior
Indebtedness may have been issued, as their respective interests may appear, as calculated by the
Company, for application to the payment of all Senior Indebtedness, remaining unpaid to the extent
necessary to pay such Senior Indebtedness in full in money in accordance with its terms, after
giving effect to any concurrent payment or distribution to or for the benefit of the holders of
such Senior Indebtedness.



     For purposes of this Article XV, the words “cash, property or securities” shall not be deemed
to include shares of stock of the Company as reorganized or readjusted, or securities of the
Company or any other entity provided for by a plan of reorganization or readjustment, the payment
of which is subordinated at least to the extent provided in this Article XV with respect to the
Debentures to the payment of all Senior Indebtedness, that may at the time be outstanding, provided
that (i) such Senior Indebtedness is assumed by the new entity, if any, resulting from any such
reorganization or readjustment, and (ii) the rights of the holders of such Senior Indebtedness are
not, without the consent of such holders, altered by such reorganization or readjustment. The
consolidation of the Company with, or the merger of the Company into, another entity or the
liquidation or dissolution of the Company following the conveyance or transfer of its property as
an entirety, or substantially as an entirety, to another entity upon the terms and conditions
provided for in Article XI of this Indenture shall not be deemed a dissolution, winding-up,
liquidation or reorganization for the purposes of this Section if such other entity shall, as a
part of such consolidation, merger, conveyance or transfer, comply with the conditions stated in
Article XI of this Indenture. Nothing in Section 15.2 or in this Section shall apply to claims of,
or payments to, the Trustee under or pursuant to Section 6.6 of this Indenture.



     Section 15.4 Subrogation. Subject to the payment in full of all Senior Indebtedness, the Securityholders
shall be subrogated to the rights of the holders of such Senior Indebtedness to receive payments or
distributions of cash, property or securities of the Company, applicable to such Senior
Indebtedness until the principal of (and premium, if any) and interest on the Debentures shall be
paid in full. For the purposes of such subrogation, no payments or distributions to the holders of
such Senior Indebtedness of any cash, property or securities to which the Securityholders or the
Trustee would be entitled except for the provisions of this Article XV, and no payment over
pursuant to the provisions of this Article XV to or for the
benefit of the holders of such Senior Indebtedness by Securityholders or the Trustee, shall, as
between the Company, its creditors other than holders of Senior Indebtedness of the Company, and
the holders of the Debentures be deemed to be a payment or distribution by the Company to



55









 







or on
account of such Senior Indebtedness. It is understood that the provisions of this Article XV are
and are intended solely for the purposes of defining the relative rights of the holders of the
Securities, on the one hand, and the holders of such Senior Indebtedness, on the other hand.



     Nothing contained in this Article XV or elsewhere in this Indenture or in the Debentures is
intended to or shall impair, as between the Company, its creditors other than the holders of Senior
Indebtedness, and the holders of the Debentures, the obligation of the Company, which is absolute
and unconditional, to pay to the holders of the Debentures the principal of (and premium, if any)
and interest on the Debentures as and when the same shall become due and payable in accordance with
their terms, or is intended to or shall affect the relative rights of the holders of the Debentures
and creditors of the Company, other than the holders of Senior Indebtedness, nor shall anything
herein or therein prevent the Trustee or the holder of any Debenture from exercising all remedies
otherwise permitted by applicable law upon default under this Indenture, subject to the rights, if
any, under this Article XV of the holders of such Senior Indebtedness in respect of cash, property
or securities of the Company, received upon the exercise of any such remedy.



     Upon any payment or distribution of assets of the Company referred to in this Article XV, the
Trustee, subject to the provisions of Article VI of this Indenture, and the Securityholders shall
be entitled to conclusively rely upon any order or decree made by any court of competent
jurisdiction in which such dissolution, winding-up, liquidation or reorganization proceedings are
pending, or a certificate of the receiver, trustee in bankruptcy, liquidation trustee, agent or
other Person making such payment or distribution, delivered to the Trustee or to the
Securityholders, for the purposes of ascertaining the Persons entitled to participate in such
distribution, the holders of Senior Indebtedness and other indebtedness of the Company, the amount
thereof or payable thereon, the amount or amounts paid or distributed thereon and all other facts
pertinent thereto or to this Article XV.



     Section 15.5 Trustee to Effectuate Subordination. Each Securityholder by such Securityholder’s
acceptance thereof authorizes and directs the Trustee on such Securityholder’s behalf to take such
action as may be necessary or appropriate to effectuate the subordination provided in this Article
XV and appoints the Trustee such Securityholder’s attorney-in-fact for any and all such purposes.



     Section 15.6 Notice by the Company. The Company shall give prompt written notice to a Responsible
Officer of the Trustee at the Principal Office of the Trustee of any fact known to the Company that
would prohibit the making of any payment of monies to or by the Trustee in respect of the
Debentures pursuant to the provisions of this Article XV. Notwithstanding the provisions of this
Article XV or any other provision of this Indenture, the Trustee shall not be charged with
knowledge of the existence of any facts that would prohibit the making of any payment of monies to
or by the Trustee in respect of the Debentures pursuant to the provisions of this Article XV,
unless and until a Responsible Officer of the Trustee at the Principal Office of the Trustee shall
have received written notice thereof from the Company or a holder or holders of Senior Indebtedness
or from any trustee therefor; and before the receipt of any such written
notice, the Trustee, subject to the provisions of Article VI of this Indenture, shall be entitled
in all respects to assume that no such facts exist; provided, however, that if the
Trustee shall not have received the notice provided for in this Section at least 2 Business Days
prior to the date



56









 







upon which by the terms hereof any money may become payable for any purpose
(including, without limitation, the payment of the principal of (or premium, if any) or interest on
any Debenture), then, anything herein contained to the contrary notwithstanding, the Trustee shall
have full power and authority to receive such money and to apply the same to the purposes for which
they were received, and shall not be affected by any notice to the contrary that may be received by
it within 2 Business Days prior to such date.



     The Trustee, subject to the provisions of Article VI of this Indenture, shall be entitled to
conclusively rely on the delivery to it of a written notice by a Person representing himself to be
a holder of Senior Indebtedness (or a trustee or representative on behalf of such holder), to
establish that such notice has been given by a holder of such Senior Indebtedness or a trustee or
representative on behalf of any such holder or holders. In the event that the Trustee determines in
good faith that further evidence is required with respect to the right of any Person as a holder of
such Senior Indebtedness to participate in any payment or distribution pursuant to this Article XV,
the Trustee may request such Person to furnish evidence to the reasonable satisfaction of the
Trustee as to the amount of such Senior Indebtedness held by such Person, the extent to which such
Person is entitled to participate in such payment or distribution and any other facts pertinent to
the rights of such Person under this Article XV, and, if such evidence is not furnished, the
Trustee may defer any payment to such Person pending judicial determination as to the right of such
Person to receive such payment.



     Section 15.7 Rights of the Trustee; holders of Senior Indebtedness. The Trustee in its individual
capacity shall be entitled to all the rights set forth in this Article XV in respect of any Senior
Indebtedness at any time held by it, to the same extent as any other holder of Senior Indebtedness,
and nothing in this Indenture shall deprive the Trustee of any of its rights as such holder.



     With respect to the holders of Senior Indebtedness, the Trustee undertakes to perform or to
observe only such of its covenants and obligations as are specifically set forth in this Article
XV, and no implied covenants or obligations with respect to the holders of such Senior Indebtedness
shall be read into this Indenture against the Trustee. The Trustee shall not be deemed to owe any
fiduciary duty to the holders of such Senior Indebtedness and, subject to the provisions of Article
VI of this Indenture, the Trustee shall not be liable to any holder of such Senior Indebtedness if
it shall pay over or deliver to Securityholders, the Company or any other Person money or assets to
which any holder of such Senior Indebtedness shall be entitled by virtue of this Article XV or
otherwise.



     Nothing in this Article XV shall apply to claims of, or payments to, the Trustee under or
pursuant to Section 6.6.



     Section 15.8 Subordination May Not Be Impaired. No right of any present or future holder of any Senior
Indebtedness to enforce subordination as herein provided shall at any time in any way be prejudiced
or impaired by any act or failure to act on the part of the Company, or by any act or failure to
act, in good faith, by any such holder, or by any noncompliance by the
Company, with the terms, provisions and covenants of this Indenture, regardless of any knowledge
thereof that any such holder may have or otherwise be charged with.



57









 





     Without in any way limiting the generality of the foregoing paragraph, the holders of Senior
Indebtedness may, at any time and from time to time, without the consent of or notice to the
Trustee or the Securityholders, without incurring responsibility to the Securityholders arid
without impairing or releasing the subordination provided in this Article XV or the obligations
hereunder of the holders of the Debentures to the holders of such Senior Indebtedness, do any one
or more of the following: (i) change the manner, place or terms of payment or extend the time of
payment of, or renew or alter, such Senior Indebtedness, or otherwise amend or supplement in any
manner such Senior Indebtedness or any instrument evidencing the same or any agreement under which
such Senior Indebtedness is outstanding; (ii) sell, exchange, release or otherwise deal with any
property pledged, mortgaged or otherwise securing such Senior Indebtedness; (iii) release any
Person liable in any manner for the collection of such Senior Indebtedness; and (iv) exercise or
refrain from exercising any rights against the Company, and any other Person.



signatures appear on the following page




58









 





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



	 	 	 	 	 
	 	ALLIANCE CAPITAL PARTNERS, L.P.

 	 
	 	By:  	Alliance Capital Partners, Inc.,
 	 
	 	 	as general partner 	 
	 	 	 
	 	By:  	     /s/ [signature indecipherable]
 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	STATE STREET BANK AND TRUST COMPANY OF

CONNECTICUT, NATIONAL ASSOCIATION, as Trustee

 	 
	 	By:  	/s/ Paul D. Allen
 	 
	 	 	Name:  	Paul D. Allen 	 
	 	 	Title:  	Vice President 	 
	 








59









 








FORM OF JUNIOR SUBORDINATED DEBENTURE




[FORM OF FACE OF SECURITY]




     THIS SECURITY HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE
“SECURITIES ACT”), ANY STATE SECURITIES LAWS OR ANY OTHER APPLICABLE SECURITIES LAW. NEITHER THIS
SECURITY NOR ANY INTEREST OR PARTICIPATION HEREIN MAY BE REOFFERED, SOLD, ASSIGNED, TRANSFERRED,
PLEDGED, ENCUMBERED OR OTHERWISE DISPOSED OF IN THE ABSENCE OF SUCH REGISTRATION OR UNLESS SUCH
TRANSACTION IS EXEMPT FROM, OR NOT SUBJECT TO, THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT
AND ANY APPLICABLE STATE SECURITIES LAWS. THE HOLDER OF THIS SECURITY BY ITS ACCEPTANCE HEREOF
AGREES TO OFFER, SELL OR OTHERWISE TRANSFER THIS SECURITY ONLY (A) TO THE COMPANY, (B) PURSUANT TO
A REGISTRATION STATEMENT THAT HAS BEEN DECLARED EFFECTIVE UNDER THE SECURITIES ACT, (C) TO A PERSON
WHOM THE SELLER REASONABLY BELIEVES IS A QUALIFIED INSTITUTIONAL BUYER IN A TRANSACTION MEETING THE
REQUIREMENTS OF RULE 144A SO LONG AS THIS SECURITY IS ELIGIBLE FOR RESALE PURSUANT TO RULE 144A IN
ACCORDANCE WITH RULE 144A, (D) TO A NON-U.S. PERSON IN AN OFFSHORE TRANSACTION IN ACCORDANCE WITH
RULE 903 OR RULE 904 (AS APPLICABLE) OF REGULATION S UNDER THE SECURITIES ACT, (E) TO AN
INSTITUTIONAL “ACCREDITED INVESTOR” WITHIN THE MEANING OF SUBPARAGRAPH (A) OF RULE 501 UNDER THE
SECURITIES ACT THAT IS ACQUIRING THIS SECURITY FOR ITS OWN ACCOUNT, OR FOR THE ACCOUNT OF SUCH AN
INSTITUTIONAL ACCREDITED INVESTOR, FOR INVESTMENT PURPOSES AND NOT WITH A VIEW TO, OR FOR OFFER OR
SALE IN CONNECTION WITH, ANY DISTRIBUTION IN VIOLATION OF THE SECURITIES ACT, OR (F) PURSUANT TO
ANY OTHER AVAILABLE EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT, SUBJECT TO
THE COMPANY’S RIGHT PRIOR TO ANY SUCH OFFER, SALE OR TRANSFER TO REQUIRE THE DELIVERY OF AN OPINION
OF COUNSEL, CERTIFICATION AND/OR OTHER INFORMATION SATISFACTORY TO EACH OF THEM IN ACCORDANCE WITH
THE INDENTURE, A COPY OF WHICH MAY BE OBTAINED FROM THE COMPANY.



     THE HOLDER OF THIS SECURITY BY ITS ACCEPTANCE HEREOF ALSO AGREES, REPRESENTS AND WARRANTS THAT
IT IS NOT AN EMPLOYEE BENEFIT, INDIVIDUAL RETIREMENT ACCOUNT OR OTHER PLAN OR ARRANGEMENT SUBJECT
TO TITLE I OF THE EMPLOYMENT RETIREMENT INCOME SECURITY ACT OF 1974, AS AMENDED (“ERISA”), OR
SECTION 4975 OF THE INTERNAL REVENUE CODE OF 1986, AS AMENDED (THE “CODE”) (EACH A “PLAN”), OR AN
ENTITY WHOSE UNDERLYING ASSETS INCLUDE “PLAN ASSETS” BY REASON OF ANY PLAN’S INVESTMENT IN THE
ENTITY, AND NO PERSON INVESTING “PLAN ASSETS” OF ANY PLAN MAY ACQUIRE OR HOLD THE SECURITIES OR ANY
INTEREST THEREIN, UNLESS SUCH PURCHASER OR HOLDER IS ELIGIBLE FOR EXEMPTIVE RELIEF AVAILABLE UNDER
U.S. DEPARTMENT OF LABOR PROHIBITED TRANSACTION CLASS EXEMPTION 96 ̈23, 95 ̈60,
91 ̈38, 90 ̈1 OR 84 ̈14 OR ANOTHER APPLICABLE EXEMPTION OR ITS PURCHASE AND HOLDING



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OF THIS SECURITY IS NOT PROHIBITED BY SECTION 406 OF ERISA OR SECTION 4975 OF THE CODE WITH
RESPECT TO SUCH PURCHASE OR HOLDING. ANY PURCHASER OR HOLDER OF THE SECURITIES OR ANY INTEREST
THEREIN WILL BE DEEMED TO HAVE REPRESENTED BY ITS PURCHASE AND HOLDING THEREOF THAT EITHER (i) IT
IS NOT AN EMPLOYEE BENEFIT PLAN WITHIN THE MEANING OF SECTION 3(3) OF ERISA, OR A PLAN TO WHICH
SECTION 4975 OF THE CODE IS APPLICABLE, A TRUSTEE OR OTHER PERSON ACTING ON BEHALF OF AN EMPLOYEE
BENEFIT PLAN OR PLAN, OR ANY OTHER PERSON OR ENTITY USING THE ASSETS OF ANY EMPLOYEE BENEFIT PLAN
OR PLAN TO FINANCE SUCH PURCHASE, OR (ii) SUCH PURCHASE WILL NOT RESULT IN A PROHIBITED TRANSACTION
UNDER SECTION 406 OR ERISA OR SECTION 4975 OF THE CODE FOR WHICH THERE IS NO APPLICABLE STATUTORY
OR ADMINISTRATIVE EXEMPTION.



     THIS SECURITY WILL BE ISSUED AND MAY BE TRANSFERRED ONLY IN BLOCKS HAVING AN AGGREGATE
PRINCIPAL AMOUNT OF NOT LESS THAN $500,000.00 AND MULTIPLES OF $1,000.00 IN EXCESS THEREOF. ANY
ATTEMPTED TRANSFER OF THIS SECURITY IN A BLOCK HAVING AN AGGREGATE PRINCIPAL AMOUNT OF LESS THAN
$500,000.00 SHALL BE DEEMED TO BE VOID AND OF NO LEGAL EFFECT WHATSOEVER.



     THE HOLDER OF THIS SECURITY AGREES THAT IT WILL COMPLY WITH THE FOREGOING RESTRICTIONS.



     IN CONNECTION WITH ANY TRANSFER, THE HOLDER WILL DELIVER TO THE REGISTRAR AND TRANSFER AGENT
SUCH CERTIFICATE AND OTHER INFORMATION AS MAY BE REQUIRED BY THE INDENTURE TO CONFIRM THAT THE
TRANSFER COMPLIES WITH THE FOREGOING RESTRICTIONS.



Floating Rate Junior Subordinated Deferrable Interest Debenture




of



ALLIANCE CAPITAL PARTNERS, L.P.



July 31, 2001



     Alliance Capital Partners, L.P., a Delaware limited partnership (the “Company” which term
includes any successor Person under the Indenture hereinafter referred to), for value received
promises to pay to State Street Bank and Trust Company of Connecticut, National Association, not in
its individual capacity but solely as Institutional Trustee for Alliance Capital Partners Statutory
Trust I (the “Holder”) or registered assigns, the principal sum of Fifteen Million Four Hundred
Sixty Four Thousand and 00/100 ($15,464,000) on July 31, 2031, and to pay interest on said
principal sum from July 31, 2001, or from the most recent interest payment date (each such date, an
“Interest Payment Date”) to which interest has been paid or duly provided for, quarterly (subject
to deferral as set forth herein) in arrears on October 31, January 31, April 30 and July 31 of each
year commencing October 31, 2001, at an annual rate equal to



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7.29% beginning on (and including) the date of original issuance and ending on (but excluding)
October 31, 2001 and at an annual rate for each successive period beginning on (and including)
October 31, 2001, and each succeeding Interest. Payment Date, and ending on (but excluding) the
next succeeding Interest Payment Date (each a “Distribution Period”), equal to 3-Month LIBOR,
determined as described below, plus 3.58%; provided, however, that prior to July
31, 2011, such annual rate shall not exceed 12.50% (the “Coupon Rate”) applied to the principal
amount hereof, until the principal hereof is paid or duly provided for or made available for
payment, and on any overdue principal and (without duplication) on any overdue installment of
interest at the same rate per annum, compounded quarterly, from the dates such amounts are due
until they are paid or made available for payment. As used herein, “Determination Date” means the
date that is two London Banking Days (i.e., a day in which dealings in deposits in U.S. dollars are
transacted in the London interbank market) preceding the commencement of the relevant Distribution
Period. The amount of interest payable for any period will be computed on the basis of the actual
number of days in the Distribution Period concerned divided by 360. In the event that any date on
which interest is payable on this Debenture is not a Business Day, then a payment of the interest
payable on such date will be made on the next succeeding day which is a Business Day (and without
any interest or other payment in respect of any such delay), except that, if such Business Day is
in the next succeeding calendar year, such payment shall be made on the immediately preceding
Business Day, in each case with the same force and effect as if made on the date the payment was
originally payable. The interest installment so payable, and punctually paid or duly provided for,
on any Interest Payment Date will, as provided in the Indenture, be paid to the Person in whose
name this Debenture (or one or more Predecessor Securities) is registered at the close of business
on the regular record date for such interest installment, which shall be fifteen days prior to the
day on which the relevant Interest Payment Date occurs. Any such interest installment not so
punctually paid or duly provided for shall forthwith cease to be payable to the Holder on such
regular record date and may be paid to the Person in whose name this Debenture (or one or more
Predecessor Securities) is registered at the close of business on a special record date.



     “3-Month LIBOR” as used herein, means the London interbank offered rate for three-month
Eurodollar deposits determined by the Trustee in the following order of priority: (i) the rate
(expressed as a percentage per annum) for Eurodollar deposits having a three-month maturity that
appears on Telerate Page 3750 as of 11:00 a.m. (London time) on the particular Determination Date
(“Telerate Page 3750” means the display designated as “Page 3750” on the Dow Jones Telerate Service
or such other page as may replace Page 3750 on that service or such other service or services as
may be nominated by the British Bankers’ Association as the information vendor for the purpose of
displaying London interbank offered rates for U.S. dollars deposits); (ii) if such rate does not
appear on Telerate Page 3750 as of 11:00 a.m. (London time) on the Determination Date, 3-Month
LIBOR will be the arithmetic mean of the rates (expressed as percentages per annum) for Eurodollar
deposits having a three-month maturity that appear on Reuters Monitor Money Rates Page LIBO
(“Reuters Page LIBO”) as of 11:00 a.m. (London time) on such Determination Date; (iii) if such rate
does not appear on Reuters Page LIBO as of 11:00 a.m. (London time) on the related Determination
Date, the Trustee will request the principal London offices of four leading banks in the London
interbank market to provide such banks’ offered quotations (expressed as percentages per annum) to
prime banks in the London interbank market for Eurodollar deposits having a three-month maturity as
of 11:00 a.m. (London time) on such Determination Date. If at least two quotations are provided,
3-Month LIBOR will be the



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arithmetic mean of such quotations; (iv) if fewer than two such quotations are provided as
requested in clause (iii) above, the Trustee will request four major New York City banks to provide
such banks’ offered quotations (expressed as percentages per annum) to leading European banks for
loans in Eurodollars as of 11:00 a.m. (London time) on such Determination Date. If at least two
such quotations are provided, 3-Month LIBOR will be the arithmetic mean of such quotations; and (v)
if fewer than two such quotations are provided as requested in clause (iv) above, 3-Month LIBOR
will be a 3-Month LIBOR determined with respect to the Distribution Period immediately preceding
such current Distribution Period. If the rate for Eurodollar deposits having a three-month maturity
that initially appears on Telerate Page 3750 or Reuters Page LIBO, as the case may be, as of 11:00
a.m. (London time) on the related Determination Date is superseded on the Telerate Page 3750 or
Reuters Page LIBO, as the case may be, by a corrected rate by 12:00 noon (London time) on such
Determination Date, then the corrected rate as so substituted on the applicable page will be the
applicable 3-Month LIBOR for such Determination Date.




     The Coupon Rate for any Distribution Period will at no time be higher than the maximum rate
then permitted by New York law as the same may be modified by United States law.



     All percentages resulting from any calculations on the Debentures will be rounded, if
necessary, to the nearest one hundred-thousandth of a percentage point, with five one-millionths of
a percentage point rounded upward (e.g., 9.876545% or .09876545) being rounded to 9.87655% (or
..0987655), and all dollar amounts used in or resulting from such calculation will be rounded to the
nearest cent (with one-half cent being rounded upward).



     The principal of and interest on this Debenture shall be payable at the office or agency of
the Trustee (or other paying agent appointed by the Company) maintained for that purpose in any
coin or currency of the United States of America that at the time of payment is legal tender for
payment of public and private debts; provided, however, that payment of interest
may be made by check mailed to the registered holder at such address as shall appear in the
Debenture Register if a request for a wire transfer by such holder has not been received by the
Company or by wire transfer to an account appropriately designated by the holder hereof.
Notwithstanding the foregoing, so long as the holder of this Debenture is the Institutional
Trustee, the payment of the principal of and interest on this Debenture will be made in immediately
available funds at such place and to such account as may be designated by the Trustee.



     So long as no Event of Default has occurred and is continuing, the Company shall have the
right, from time to time, and without causing an Event of Default, to defer payments of interest on
the Debentures by extending the interest payment period on the Debentures at any time and from time
to time during the term of the Debentures, for up to 20 consecutive quarterly periods (each such
extended interest payment period, an “Extension Period”), during which Extension Period no interest
shall be due and payable. No Extension Period may end on a date other than an Interest Payment
Date. At the end of any such Extension Period the Company shall pay all interest then accrued and
unpaid on the Debentures (together with Additional Interest thereon); provided,
however, that no Extension Period may extend beyond the Maturity Date; provided
further, however, that during any such Extension Period, the Company shall not and
shall not permit any Affiliate to (i) declare or pay any dividends or distributions on, or redeem,
purchase, acquire, or make a liquidation payment with respect to, any of the Company’s



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Ownership Interests or such Affiliate’s capital stock (other than payments of dividends or
distributions to the Company) or make any guarantee payments with respect to the foregoing or (ii)
make any payment of principal of or interest or premium, if any, on or repay, repurchase or redeem
any debt securities of the Company or any Affiliate that rank pan passu in all respects with or
junior in interest to the Debentures (other than, with respect to clauses (i) or (ii) above, (a)
repurchases, redemptions or other acquisitions of shares of Ownership Interests of the Company in
connection with any employment contract, benefit plan or other similar arrangement with or for the
benefit of one or more employees, officers, directors or consultants, in connection with a dividend
or distribution reinvestment or Ownership Interest purchase plan or in connection with the issuance
of Ownership Interests of the Company (or securities convertible into or exercisable for such
Ownership Interests) as consideration in an acquisition transaction entered into prior to the
applicable Extension Period, (b) as a result of any exchange or conversion of any class or series
of the Company’s Ownership Interests (or any capital stock of a subsidiary of the Company) for any
class or series of the Company’s Ownership Interests or of any class or series of the Company’s
indebtedness for any class or series of the Company’s Ownership Interests, (c) the purchase of
fractional interests in shares or units of the Company’s Ownership Interests pursuant to the
conversion or exchange provisions of such Ownership Interest or the security being converted or
exchanged, (d) any declaration of a dividend or distribution in connection with any Ownership
Interest holder’s rights plan, or the issuance of rights, Ownership Interests or other property
under any Ownership Interest holder’s rights plan, or the redemption or repurchase of rights
pursuant thereto, (e) any dividend or distribution in the form of Ownership Interests, warrants,
options or other rights where the dividend Ownership Interest or the Ownership Interests issuable
upon exercise of such warrants, options or other rights is the same Ownership Interest as that on
which the dividend or distribution is being paid or ranks pari passu with or junior to such
Ownership Interest and any cash payments in lieu of fractional shares or units issued in connection
therewith, or (f) payments under the Capital Securities Guarantee). Prior to the termination of any
Extension Period, the Company may further extend such period, provided that such period together
with all such previous and further consecutive extensions thereof shall not exceed 20 consecutive
quarterly periods, or extend beyond the Maturity Date. Upon the termination of any Extension Period
and upon the payment of all accrued and unpaid interest and Additional Interest, the Company may
commence a new Extension Period, subject to the foregoing requirements. No interest or Additional
Interest shall be due and payable during an Extension Period, except at the end thereof, but each
installment of interest that would otherwise have been due and payable during such Extension Period
shall bear Additional Interest. The Company must give the Trustee notice of its election to begin
such Extension Period at least 5 Business Days prior to the earlier of (i) the date interest on the
Debentures would have been payable except for the election to begin such Extension Period or (ii)
the date such interest is payable, but in any event not less than 5 Business Days prior to such
record date.




     The indebtedness evidenced by this Debenture is, to the extent provided in the Indenture,
subordinate and junior in right of payment to the prior payment in full of all Senior Indebtedness,
and this Debenture is issued subject to the provisions of the Indenture with respect thereto. Each
holder of this Debenture, by accepting the same, (a) agrees to and shall be bound by such
provisions, (b) authorizes and directs the Trustee on his or her behalf to take such action as may
be necessary or appropriate to acknowledge or effectuate the subordination so provided and (c)
appoints the Trustee his or her attorney-in-fact for any and all such purposes. Each holder hereof,
by his or her acceptance hereof, hereby waives all notice of the acceptance of the subordination



A-1-5









 




provisions contained herein and in the Indenture by each holder of Senior Indebtedness,
whether now outstanding or hereafter incurred, and waives reliance by each such holder upon said
provisions.




     This Debenture shall not be entitled to any benefit under the Indenture hereinafter referred
to, be valid or become obligatory for any purpose until the certificate of authentication hereon
shall have been signed by or on behalf of the Trustee.



     Capitalized terms used and not defined in this Debenture shall have the meanings assigned in
the Indenture dated as of the date of this Debenture between the Trustee and the Company.



     IN WITNESS WHEREOF, the Company has duly executed this certificate.



	 	 	 	 	 
	 	ALLIANCE CAPITAL PARTNERS, L.P.

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 



CERTIFICATE OF AUTHENTICATION





     This is one of the Debentures referred to in the within-mentioned Indenture.



	 	 	 	 	 
	 	State Street Bank and Trust Company of

Connecticut, National Association, as Trustee

 	 
	 	By:  	 	 
	 	 	Authorized Officer 	 
	 	 	 	 
	 




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