exv4w4






Exhibit 4.4




[FORM OF SUBORDINATED INDENTURE]




PRGX GLOBAL, INC.




AND



[                      ],

AS TRUSTEE



SUBORDINATED DEBT INDENTURE



Dated as of [                 ], 20[ ]








 









 








TABLE OF CONTENTS




	 	 	 	 	 
	 	 	Page	 
	ARTICLE 1 DEFINITIONS AND INCORPORATION BY REFERENCE
	 	 	1	 
	 
	 	 	 	 
	Section 1.01. Definitions
	 	 	1	 
	Section 1.02. Other Definitions
	 	 	5	 
	Section 1.03. Incorporation by Reference of Trust Indenture Act
	 	 	5	 
	Section 1.04. Rules of Construction
	 	 	6	 
	Section 1.05. Acts of Holders
	 	 	6	 
	 
	 	 	 	 
	ARTICLE 2 THE SECURITIES
	 	 	7	 
	 
	 	 	 	 
	Section 2.01. Form and Dating
	 	 	7	 
	Section 2.02. Amount Unlimited; Issuable in Series
	 	 	8	 
	Section 2.03. Denominations
	 	 	11	 
	Section 2.04. Execution and Authentication
	 	 	11	 
	Section 2.05. Registrar and Paying Agent; Appointment of Depositary
	 	 	12	 
	Section 2.06. Paying Agent to Hold Money in Trust
	 	 	12	 
	Section 2.07. Holder Lists
	 	 	13	 
	Section 2.08. Transfer and Exchange
	 	 	13	 
	Section 2.09. Replacement Securities
	 	 	16	 
	Section 2.10. Outstanding Securities
	 	 	16	 
	Section 2.11. Treasury Securities
	 	 	17	 
	Section 2.12. Temporary Securities
	 	 	17	 
	Section 2.13. Cancellation
	 	 	17	 
	Section 2.14. Defaulted Interest
	 	 	17	 
	 
	 	 	 	 
	ARTICLE 3 REDEMPTION AND PREPAYMENT
	 	 	18	 
	 
	 	 	 	 
	Section 3.01. Applicability of Article
	 	 	18	 
	Section 3.02. Selection of Securities to be Redeemed
	 	 	18	 
	Section 3.03. Notice of Redemption
	 	 	18	 
	Section 3.04. Effect of Notice of Redemption
	 	 	19	 
	Section 3.05. Deposit of Redemption or Purchase Price
	 	 	20	 
	Section 3.06. Securities Redeemed or Purchased in Part
	 	 	20	 
	Section 3.07. Mandatory Redemption; Sinking Fund
	 	 	20	 
	 
	 	 	 	 
	ARTICLE 4 COVENANTS
	 	 	22	 
	 
	 	 	 	 
	Section 4.01. Payment of Securities
	 	 	22	 






-i-









 






TABLE OF CONTENTS

(continued)




	 	 	 	 	 
	 	 	Page	 
	Section 4.02. Maintenance of Office or Agency
	 	 	22	 
	Section 4.03. Reports
	 	 	22	 
	Section 4.04. Compliance Certificate
	 	 	23	 
	Section 4.05. Continued Existence
	 	 	23	 
	Section 4.06. Stay, Extension and Usury Laws
	 	 	24	 
	 
	 	 	 	 
	ARTICLE 5 SUCCESSORS
	 	 	24	 
	 
	 	 	 	 
	Section 5.01. Merger, Consolidation, or Sale of Assets
	 	 	24	 
	Section 5.02. Successor Person Substituted
	 	 	24	 
	 
	 	 	 	 
	ARTICLE 6 DEFAULTS AND REMEDIES
	 	 	25	 
	 
	 	 	 	 
	Section 6.01. Events of Default
	 	 	25	 
	Section 6.02. Acceleration
	 	 	26	 
	Section 6.03. Other Remedies
	 	 	26	 
	Section 6.04. Waiver of Past Defaults; Rescission of Acceleration
	 	 	27	 
	Section 6.05. Control by Majority
	 	 	27	 
	Section 6.06. Limitation on Suits
	 	 	27	 
	Section 6.07. Rights of Holders of Securities to Receive Payment
	 	 	28	 
	Section 6.08. Collection Suit by Trustee
	 	 	28	 
	Section 6.09. Trustee May File Proofs of Claim
	 	 	28	 
	Section 6.10. Priorities
	 	 	29	 
	Section 6.11. Undertaking for Costs
	 	 	29	 
	 
	 	 	 	 
	ARTICLE 7 TRUSTEE
	 	 	29	 
	 
	 	 	 	 
	Section 7.01. Duties of Trustee
	 	 	29	 
	Section 7.02. Rights of Trustee
	 	 	30	 
	Section 7.03. Individual Rights of Trustee
	 	 	32	 
	Section 7.04. Trustee’s Disclaimer
	 	 	32	 
	Section 7.05. Notice of Defaults
	 	 	32	 
	Section 7.06. Reports by Trustee to Holders of the Securities
	 	 	32	 
	Section 7.07. Compensation and Indemnity
	 	 	32	 
	Section 7.08. Replacement of Trustee
	 	 	33	 
	Section 7.09. Successor Trustee by Merger, Etc
	 	 	34	 
	Section 7.10. Eligibility; Disqualification
	 	 	35	 






-ii-









 






TABLE OF CONTENTS

(continued)




	 	 	 	 	 
	 	 	Page	 
	Section 7.11. Preferential Collection of Claims Against Company
	 	 	35	 
	 
	 	 	 	 
	ARTICLE 8 LEGAL DEFEASANCE AND COVENANT DEFEASANCE
	 	 	35	 
	 
	 	 	 	 
	Section 8.01. Option to Effect Legal Defeasance or Covenant Defeasance
	 	 	35	 
	Section 8.02. Legal Defeasance and Discharge
	 	 	36	 
	Section 8.03. Covenant Defeasance
	 	 	37	 
	Section 8.04. Conditions to Legal or Covenant Defeasance
	 	 	37	 
	Section 8.05. Deposited Money and U.S. Government Obligations to be Held in Trust;
Other Miscellaneous Provisions
	 	 	38	 
	Section 8.06. Repayment to Company
	 	 	39	 
	Section 8.07. Reinstatement
	 	 	39	 
	 
	 	 	 	 
	ARTICLE 9 AMENDMENT, SUPPLEMENT AND WAIVER
	 	 	39	 
	 
	 	 	 	 
	Section 9.01. Without Consent of Holders of Securities
	 	 	39	 
	Section 9.02. With Consent of Holders of Securities
	 	 	41	 
	Section 9.03. Compliance with Trust Indenture Act
	 	 	42	 
	Section 9.04. Revocation and Effect of Consents
	 	 	42	 
	Section 9.05. Notation on or Exchange of Securities
	 	 	42	 
	Section 9.06. Trustee to Sign Amendments, Etc.
	 	 	42	 
	Section 9.07. Amendments to Subordination Provisions
	 	 	43	 
	 
	 	 	 	 
	ARTICLE 10 SUBORDINATION
	 	 	43	 
	 
	 	 	 	 
	Section 10.01. Agreement to Subordinate
	 	 	43	 
	Section 10.02. Certain Definitions
	 	 	43	 
	Section 10.03. Liquidation; Dissolution; Bankruptcy
	 	 	43	 
	Section 10.04. Default on Designated Senior Debt
	 	 	44	 
	Section 10.05. Acceleration of Securities
	 	 	45	 
	Section 10.06. When Distribution Must be Paid Over
	 	 	45	 
	Section 10.07. Notice by Company
	 	 	45	 
	Section 10.08. Subrogation
	 	 	46	 
	Section 10.09. Relative Rights
	 	 	46	 
	Section 10.10. Subordination May Not be Impaired by Company
	 	 	46	 
	Section 10.11. Distribution or Notice to Representative
	 	 	46	 
	Section 10.12. Rights of Trustee and Paying Agent
	 	 	47	 






-iii-









 






TABLE OF CONTENTS

(continued)




	 	 	 	 	 
	 	 	Page	 
	Section 10.13. Authorization to Effect Subordination
	 	 	47	 
	 
	 	 	 	 
	ARTICLE 11 MEETINGS OF HOLDERS
	 	 	47	 
	 
	 	 	 	 
	Section 11.01. Purposes for Which Meeting May be Called
	 	 	47	 
	Section 11.02. Call, Notice and Place of Meetings
	 	 	48	 
	Section 11.03. Persons Entitled to Vote at Meetings
	 	 	48	 
	Section 11.04. Quorum; Action
	 	 	48	 
	Section 11.05. Determination of Voting Rights; Conduct and Adjournment of Meetings
	 	 	49	 
	Section 11.06. Counting Votes and Recording Action of Meetings
	 	 	50	 
	Section 11.07. Article Subject to Other Provisions
	 	 	50	 
	 
	 	 	 	 
	ARTICLE 12 MISCELLANEOUS
	 	 	50	 
	 
	 	 	 	 
	Section 12.01. Trust Indenture Act Controls
	 	 	50	 
	Section 12.02. Notices
	 	 	50	 
	Section 12.03. Communication by Holders of Securities with Other Holders of Securities
	 	 	52	 
	Section 12.04. Certificate and Opinion as to Conditions Precedent
	 	 	52	 
	Section 12.05. Statements Required in Certificate or Opinion
	 	 	52	 
	Section 12.06. Rules by Trustee and Agents
	 	 	52	 
	Section 12.07. No Personal Liability of Directors, Officers, Employees and Stockholders
	 	 	52	 
	Section 12.08. Governing Law
	 	 	53	 
	Section 12.09. No Adverse Interpretation of Other Agreements
	 	 	53	 
	Section 12.10. Successors
	 	 	53	 
	Section 12.11. Severability
	 	 	53	 
	Section 12.12. Counterpart Originals
	 	 	53	 
	Section 12.13. Table of Contents, Headings, Etc
	 	 	53	 
	Section 12.14. Waiver of Jury Trial
	 	 	53	 
	Section 12.15. Force Majeure
	 	 	53	 
	 
	 	 	 	 
	EXHIBITS
	 	 	 	 
	 
	 	 	 	 
	Exhibit A-1 Form of Subordinated Note
	 	 	 	 






-iv-









 






     Reconciliation between the Trust Indenture Act of 1939, as amended, and the Indenture dated as
of [    ], 20[    ], between PRGX Global, Inc. and [    ], as Trustee.



	 	 	 	 	 	 	 
	TRUST INDENTURE ACT SECTION	 	INDENTURE SECTION
	 	310(a)(1)
	 	 	 	7.10	 
	 	310(a)(2)
	 	 	 	7.10	 
	 	310(a)(3)
	 	 	 	N/A	 
	 	310(a)(4)
	 	 	 	N/A	 
	 	310(a)(5)
	 	 	 	7.10	 
	 	310(b)
	 	 	 	7.03, 7.08, 7.10	 
	 	310(c)
	 	 	 	N/A	 
	 	311(a)
	 	 	 	7.11	 
	 	311(b)
	 	 	 	7.11	 
	 	311(c)
	 	 	 	N/A	 
	 	312(a)
	 	 	 	2.07	 
	 	312(b)
	 	 	 	11.03	 
	 	312(c)
	 	 	 	11.03	 
	 	313(a)
	 	 	 	7.06	 
	 	313(b)
	 	 	 	7.06	 
	 	313(c)
	 	 	 	7.06, 11.02	 
	 	313(d)
	 	 	 	7.06	 
	 	314(a)
	 	 	 	4.03	 
	 	314(b)
	 	 	 	N/A	 
	 	314(c)
	 	 	 	4.04, 11.05	 
	 	314(d)
	 	 	 	N/A	 
	 	314(e)
	 	 	 	11.05	 
	 	314(f)
	 	 	 	N/A	 
	 	315(a)
	 	 	 	7.01	 
	 	315(b)
	 	 	 	7.05	 
	 	315(c)
	 	 	 	7.01	 
	 	315(d)
	 	 	 	7.01	 
	 	315(e)
	 	 	 	6.11	 
	 	316(a)(1)
	 	 	 	6.04, 6.05	 
	 	316(a)(2)
	 	 	 	N/A	 
	 	316(a)last sentence
	 	 	 	2.11	 
	 	316(b)
	 	 	 	6.07	 
	 	316(c)
	 	 	 	1.05	 
	 	317(a)
	 	 	 	6.08, 6.09	 
	 	317(b)
	 	 	 	2.06	 
	 	318(a)
	 	 	 	11.01	 






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



     Attention should also be directed to Section 318(c) of the Trust Indenture Act of 1939, as
amended, which provides that the provisions of Sections 310 through 317 of such Act are a part of
and govern every qualified indenture, whether or not physically contained therein.



 









 





     SUBORDINATED INDENTURE, dated as of [    ], 20[    ] (this “Indenture”) between PRGX GLOBAL,
INC., a Georgia corporation (the “Company”), and [    ], a [    ], as trustee (the
“Trustee”).



RECITALS




     The Company has duly authorized the execution and delivery of this Indenture to provide for
the issuance from time to time of its secured or unsecured subordinated debentures, notes, bonds or
other evidences of indebtedness (“Securities”), including, without limitation, junior subordinated
deferrable interest debentures, unlimited as to principal amount, to bear such rates of interest,
to mature at such time or times, to be issued in one or more series and to have such other
provisions as shall be fixed as hereinafter provided.



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



     NOW, THEREFORE, THIS INDENTURE WITNESSETH:



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








 









 








ARTICLE 1

DEFINITIONS AND INCORPORATION BY REFERENCE



Section 1.01. Definitions.




     “Affiliate” of any specified Person means any other Person directly or indirectly controlling
or controlled by or under direct or indirect common control with such specified Person. For
purposes of this definition, “control” (including, with correlative meanings, the terms
“controlling,” “controlled by” and “under common control with”), as used with respect to any
Person, shall mean the possession, directly or indirectly, of the power to direct or cause the
direction of the management or policies of such Person, whether through the ownership of voting
securities, by agreement or otherwise; provided, however, that beneficial ownership of 10% or more
of the voting securities of a Person shall be deemed to be control.



     “Agent” means any Registrar or Paying Agent.



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



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



     “Board Resolution” means a resolution of the Board of Directors.



     “Business Day” means any day other than a Legal Holiday.



     “Code” means the Internal Revenue Code of 1986, as amended.



     “Company” means PRGX Global, Inc., and any and all successors thereto pursuant to Article 5
hereof.



     “Corporate Trust Office of the Trustee” shall be the address of the Trustee specified in
Section 12.02 hereof or such other address as to which the Trustee may give notice to the Company.



     “Credit Facility” means any bank or institutional credit facility of the Company as identified
in any supplemental indenture or Board Resolution establishing a series of Securities, including
any amendment, supplement, modification, restatement, replacement, refunding or refinancing.



     “Custodian” means the Trustee, as custodian with respect to Securities in global form, or any
successor entity thereto.



     “Default” means any event that is, or with the passage of time or the giving of notice or both
would be, an Event of Default.



     “Depositary” means, with respect to any series of Securities issuable or issued in whole or in
part in global form, the Person specified in accordance with Section 2.02 hereof as the Depositary
with respect to the Global Securities of that series, and any and all successors thereto registered
and in good



 









 




standing as a clearing agency under the Exchange Act, appointed as depositary hereunder and
having become such pursuant to the applicable provision of this Indenture.




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



     “GAAP” means generally accepted accounting principles set forth in the opinions and
pronouncements of the Accounting Principles Board of the American Institute of Certified Public
Accountants and statements and pronouncements of the Financial Accounting Standards Board or in
such other statements by such other entity as have been approved by a significant segment of the
accounting profession, which are in effect on the date of the Indenture, except that if the Company
notifies the trustee in writing and the Company is reporting its financial results based on IFRS in
the reports it files with the SEC, GAAP shall mean IFRS (except where the context requires
otherwise); provided that the Company shall not be entitled to make the foregoing election on more
than one occasion. In the event the Company makes such election, (i) all accounting terms and
references in the Indenture to accounting standards shall be deemed to be references to the most
comparable terms or standards under IFRS; and (i) any calculation or determination in the Indenture
that requires the application of GAAP for periods that include fiscal quarters ended prior to the
Company’s election to apply IFRS shall remain as previously calculated or determined in accordance
with GAAP.



     “Global Securities” means, individually and collectively, the Securities issued in global form
in accordance with Sections 2.01 and 2.08 hereof.



     “Holder” means a Person in whose name a Security is registered.



     “IFRS” means the International Financial Reporting Standards, as promulgated by the
International Accounting Standards Board (or any successor board or agency), as in the effect at
the time of the Company’s election to use IFRS.



     “Indebtedness” means with respect to any Person, any indebtedness of such Person, whether or
not contingent, in respect of borrowed money or evidenced by bonds, securities, debentures or
similar instruments or letters of credit (or reimbursement agreements in respect thereof) or
banker’s acceptances, except any such balance that constitutes an accrued expense or trade payable,
if and to the extent any of the foregoing indebtedness (other than letters of credit) would appear
as a liability upon a balance sheet of such Person prepared in accordance with GAAP, as well as all
indebtedness of others secured by a lien on any asset of such Person (whether or not such
indebtedness is assumed by such Person) and, to the extent not otherwise included, the guarantee by
such Person of any indebtedness of any other Person. The amount of Indebtedness of any Person at
any date shall be the outstanding balance at such date of all unconditional obligations as
described above and the maximum liability, upon the occurrence of the contingency giving rise to
the obligation, of any contingent obligations at such date; provided that the amount outstanding at
any time of any Indebtedness issued with original issue discount is the full amount of such
Indebtedness less the remaining unamortized portion of the original issue discount of such
Indebtedness at such time as determined in conformity with GAAP. The amount of any Indebtedness
outstanding as of any date shall be (i) the accreted value thereof, in the case of any Indebtedness
issued with original issue discount and (ii) the principal amount thereof, together with any
interest thereon that is more than 30 days past due, in the case of any other Indebtedness.




- 2 -











 





     “Indenture” means this Indenture, as amended, waived or supplemented from time to time
and shall include and incorporate by reference the forms and terms of particular series of
Securities established as contemplated hereunder.



     “Indirect Participant” means a Person who holds a beneficial interest in a Global Security
through a Participant.



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



     “Legal Holiday” means a Saturday, a Sunday or a day on which banking institutions in the City
of New York or at a Place of Payment are authorized by law, regulation or executive order to remain
closed. If a payment date is a Legal Holiday at a Place of Payment, payment may be made at that
place on the next succeeding day that is not a Legal Holiday at such Place of Payment, and no
interest shall accrue on such payment for the intervening period.



     “Obligations” means any principal, premium, interest, penalties, fees, indemnifications,
reimbursements, damages and other liabilities payable (1) under this Indenture or the applicable
Securities, or (2) under Senior Debt.



     “Officer” means, with respect to any Person, the Chief Executive Officer, the President, the
Chief Operating Officer, the Chief Financial Officer, the Treasurer, any Assistant Treasurer, the
Controller, the Secretary, any Assistant Secretary, any Vice President or any Assistant Vice
President of such Person.



     “Officer’s Certificate” means a certificate signed on behalf of the Company by an Officer of
the Company, who for purposes of Section 4.04(a) must be the principal executive officer, the
principal financial officer or the principal accounting officer of the Company, that meets the
requirements of Section 12.05 hereof, to the extent applicable.



     “Opinion of Counsel” means an opinion from legal counsel that meets the requirements of
Section 12.05 hereof, to the extent applicable. The counsel may be an employee of or counsel to the
Company or any Subsidiary of the Company.



     “Participant” means, with respect to the Depositary, a Person who has an account with the
Depositary.



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



     “Responsible Officer” when used with respect to the Trustee, means any officer within the
corporate trust department of the Trustee, including any vice president, assistant vice president,
assistant secretary, assistant treasurer, trust officer or any other officer of the Trustee who
customarily performs functions similar to those performed by the Persons who at the time shall be
such officers, respectively, or to whom any corporate trust matter is referred because of such
Person’s knowledge of and familiarity with the particular subject and who shall have direct
responsibility for the administration of this Indenture.



- 3 -









 





     “SEC” means the Securities and Exchange Commission.



     “Securities” has the meaning stated in the first recital of this Indenture and more
particularly means any securities authenticated and delivered under this Indenture.



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



     “Senior Debt” means any Indebtedness unless the instrument under which such Indebtedness is
incurred expressly provides that it is on a parity with or subordinated in right of payment to the
Securities. Notwithstanding anything to the contrary in the foregoing, Senior Debt will not include
(a) any Indebtedness of the Company to any of its Subsidiaries or other Affiliates, (b) any trade
payables or (c) any Indebtedness that is incurred in violation of this Indenture.



     “Significant Subsidiary” means any Subsidiary that would be a “significant subsidiary” as
defined in Article 1, Rule 1-02 of Regulation S-X, promulgated pursuant to the Securities Act, as
such Regulation is in effect on the date of this Indenture.



     “Stated Maturity” means, with respect to any interest or principal on any series of
Securities, the date on which such payment of interest or principal is scheduled to be paid thereon
by its terms as in effect from time to time, and does not include any contingent obligation to
repay, redeem or repurchase any such interest or principal prior to the date scheduled for the
payment thereof.



     “Subsidiary” means, with respect to any Person, (i) any corporation, association or other
business entity of which more than 50% of the total voting power of shares of capital stock or
other equity interests entitled (without regard to the occurrence of any contingency) to vote in
the election of directors, managers or trustees thereof is at the time owned or controlled,
directly or indirectly, by such Person or one or more of the other Subsidiaries (of such Person or
a combination thereof) and (ii) any partnership (a) the sole general partner or the managing
general partner of which is such a Person or a Subsidiary of such Person or (b) the only general
partners of which are such Person or one or more Subsidiaries of such Person (or any combination
thereof.)



     “TIA” means the Trust Indenture Act of 1939, as amended, and as in effect on the date above
written.



     “Trustee” means the Person named as such above until a successor replaces it in accordance
with the applicable provisions of this Indenture and thereafter “Trustee” shall mean or include
each Person who is then a Trustee hereunder, and if at any time there is more than one such Person,
“Trustee” as used with respect to the Securities of any series shall mean the Trustee with respect
to Securities of that series.



     “U.S. Government Obligations” means securities that are (i) direct obligations of the United
States of America for the payment of which its full faith and credit is pledged or (ii) obligations
of a Person controlled or supervised by and acting as an agency or instrumentality of the United
States of America the payment of which is unconditionally guaranteed as a full faith and credit
obligation by the United States of America, which, in either case under clauses (i) or (ii), are
not callable or redeemable at the option of the issuer thereof, and shall also include a depository
receipt issued by a bank or trust company as custodian with respect to any such U.S. Government
Obligation or a specific payment of interest on or principal of any such U.S. Government Obligation
held by such custodian for the account



- 4 -









 




of the holder of a depository receipt; provided that (except as required by law) such
custodian is not authorized to make any deduction from the amount payable to the holder of such
depository receipt from any amount received by the custodian in respect of the U.S. Government
Obligation or the specific payment of interest on or principal of the U.S. Government Obligation
evidenced by such depository receipt.




Section 1.02. Other Definitions.




	 	 	 	 	 
	Term	 	Defined in Section
	“Act”
	 	 	1.05	 
	“Authentication Order”
	 	 	2.04	 
	“Covenant Defeasance”
	 	 	8.03	 
	“custodian”
	 	 	6.01	 
	“Designated Senior Debt”
	 	 	10.02	 
	“distribution”
	 	 	10.02	 
	“Event of Default”
	 	 	6.01	 
	“Legal Defeasance”
	 	 	8.02	 
	“mandatory sinking fund payment”
	 	 	3.07	 
	“Notice of Default”
	 	 	6.01	 
	“optional sinking fund payment”
	 	 	3.07	 
	“outstanding”
	 	 	8.02	 
	“Paying Agent”
	 	 	2.05	 
	“Payment Blockage Notice”
	 	 	10.04(a)(2)	 
	“Place of Payment”
	 	 	4.02	 
	“Registrar”
	 	 	2.05	 
	“Representative”
	 	 	10.02	 
	“sinking fund payment date”
	 	 	3.07	 






Section 1.03. Incorporation by Reference of Trust Indenture Act.




     Whenever this Indenture refers to a provision of the TIA, the provision is incorporated by
reference in and made a part of this Indenture.



     The following TIA terms used in this Indenture have the following meanings:



     “Indenture Security Holder” means a Holder of a Security;



     “Indenture to be Qualified” means this Indenture;



     “Indenture Trustee” or “Institutional Trustee” means the Trustee;



     “Obligor” on the Securities means the Company and any successor or other obligor upon the
Securities.



     All other terms used in this Indenture that are defined by the TIA, defined by TIA reference
to another statute or defined by SEC rule under the TIA and not otherwise defined herein have the
meanings so assigned to them.



- 5 -









 





Section 1.04. Rules of Construction.




     For the purposes of this Indenture, unless the context otherwise requires:




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






	 	(2)	 	an accounting term not otherwise defined has the meaning assigned
to it in accordance with United States generally accepted accounting principles;






	 	(3)	 	“or” is not exclusive;






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






	 	(5)	 	provisions apply to successive events and transactions; and






	 	(6)	 	references to sections of or rules under the Securities Act shall
be deemed to include substitute, replacement of successor sections or rules
adopted by the SEC from time to time.





Section 1.05. Acts of Holders.




     (a) Any request, demand, authorization, direction, notice, consent, waiver or other action
provided by this Indenture to be given or taken by Holders may be embodied in and evidenced by one
or more instruments of substantially similar tenor signed by such Holders, in person or by an agent
duly appointed in writing or may be embodied in and evidenced by the record of Holders voting in
favor thereof, either in person or by proxies duly appointed in writing, at any meeting of Holders
duly called and held in accordance with the provisions of Article 11, or a combination of such
instruments or record and, except as herein otherwise expressly provided, such action shall become
effective when such instrument or instruments or record or both are delivered to the Trustee and,
where it is hereby expressly required, to the Company. Such instrument or instruments and any such
record (and the action embodied therein and evidenced thereby) are herein sometimes referred to as
the “Act” of Holders signing such instrument or instruments and so voting at any such meeting.
Proof of execution of any such instrument or of a writing appointing any such agent or proxy shall
be sufficient for any purpose of this Indenture and conclusive in favor of the Trustee and the
Company, if made in the manner provided in this Section and Section 11.06. The record of any
meeting of Holders shall be proved in the manner provided in Section 11.06.



     (b) Without limiting the generality of this Section, unless otherwise provided in or pursuant
to this Indenture, a Holder, including a Depositary that is a Holder of a Global Security, may
make, give or take, by a proxy, or proxies, duly appointed in writing, any request, demand,
authorization, direction, notice, consent, waiver or other action provided in or pursuant to this
Indenture to be made, given or taken by Holders, and a Depositary that is a Holder of a Global
Security may provide its proxy or proxies to the beneficial owners of interests in any such Global
Security through such Depositary’s standing instructions and customary practices.



     (c) The fact and date of the execution by any Person of any such instrument or writing may be
proved in any manner which the Trustee deems sufficient.



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     (d) The ownership of Securities shall be proved by the Register.



ARTICLE 2

THE SECURITIES



Section 2.01. Form and Dating.




     (a) General. The Securities of each series shall be in substantially the form attached hereto
as Exhibit A-1, or such other form as shall be established by or pursuant to a Board Resolution or
in one or more indentures supplemental hereto, in each case with such appropriate insertions,
omissions, substitutions and other variations as are required or permitted by this Indenture, and
may have such letters, numbers or other marks of identification and such legends or endorsements
placed thereon as may be required to comply with the rules of any applicable securities exchange,
organizational document, governing instrument or law or as may, consistently herewith, be
determined by the officers executing such Securities as evidenced by their execution of the
Securities. If temporary Securities of any series are issued as permitted by Section 2.12, the form
thereof also shall be established as provided in the preceding sentence. If the forms of Securities
of any series are established by, or by action taken pursuant to, a Board Resolution, a copy of the
Board 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 the
certificate, together with an appropriate record of any such action taken pursuant thereto,
including a copy of the approved form of Securities shall be delivered to the Trustee at or prior
to the delivery of the Authentication Order contemplated by Section 2.04 for the authentication and
delivery of such Securities. The Trustee’s certificate of authentication shall be in substantially
the following form:



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



	 	 	 	 	 
	 	[_____________________], as Trustee

 	 
	 	By:  	 	 
	 	 	Authorized Signatory 	 
	 	 	 	 
	 




     (b) Global Securities. If Securities of or within a series are issuable in whole or in part in
global form, any such Security may provide that it shall represent the aggregate or specified
amount of outstanding Securities from time to time endorsed thereon and may also provide that the
aggregate amount of outstanding Securities represented thereby may from time to time be reduced or
increased to reflect exchanges. Any endorsement of a Security in global form to reflect the amount,
or any increase or decrease in the amount, or changes in the rights of Holders, of outstanding
Securities represented thereby, shall be made in such manner and by such Person or Persons as shall
be specified therein or upon the written order of the Company signed by an Officer to be delivered
to the Trustee pursuant to Section 2.04 or 2.12. Subject to the provisions of Section 2.04, Section
2.12, if applicable, and Section 2.08, the Trustee shall deliver and redeliver any Security in
permanent global form in the manner and upon instructions given by the Person or Persons specified
therein or in the applicable written order of the Company signed by an Officer. Any instructions by
the Company with respect to endorsement or delivery or redelivery of a Security in global form
shall be in writing.



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     The provisions of the last paragraph of Section 2.04 shall apply to any Security in global
form if such Security was never issued and sold by the Company and the Company delivers to the
Trustee the Security in global form together with written instructions with regard to the reduction
in the principal amount of Securities represented thereby, together with the written statement
contemplated by the last paragraph of Section 2.04.



     Notwithstanding the provisions of this Section 2.01, unless otherwise specified as
contemplated by Section 2.02, payment of principal of, premium, if any, and interest on any
Security in permanent global form shall be made to the Holder thereof.



Section 2.02. Amount Unlimited; Issuable in Series.




     (a) The aggregate principal amount of Securities which may be authenticated and delivered
under this Indenture is unlimited. The Securities may be issued from time to time in one or more
series.



     (b) The following matters shall be established with respect to each series of Securities
issued hereunder (i) by a Board Resolution, (ii) by action taken pursuant to a Board Resolution and
set forth, or determined in the manner provided, in an Officer’s Certificate or (iii) in one or
more indentures supplemental hereto:




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






	 	(2)	 	any limit upon the aggregate principal amount of the Securities
of the series which may be authenticated and delivered under this Indenture
(which limit shall not pertain to Securities authenticated and delivered upon
registration of transfer of, or in exchange for, or in lieu of, other Securities
of the series pursuant to Section 2.08, 2.09, 2.12, 3.06 or 9.05 or any
Securities that, pursuant to Section 2.04, are deemed never to have been
authenticated and delivered hereunder);






	 	(3)	 	the date or dates on which the principal of and premium, if any,
on the Securities of the series is payable or the method or methods of
determination thereof;






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






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




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	 	(6)	 	the period or periods within which, the price or prices at which,
the currency or currencies (including currency unit or units) in which, and the
other terms and conditions upon which, Securities of the series may be redeemed,
in whole or in part, at the option of the Company and, if other than as provided
in Section 3.02, the manner in which the particular Securities of such series
(if less than all Securities of such series are to be redeemed) are to be
selected for redemption;






	 	(7)	 	the obligation, if any, of the Company to redeem or purchase
Securities of the series pursuant to any sinking fund or analogous provisions or
upon the happening of a specified event or at the option of a Holder thereof and
the period or periods within which, the price or prices at which, the currency
or currencies (including currency unit or units) in which, and the other terms
and conditions upon which, Securities of the series shall be redeemed or
purchased, in whole or in part, pursuant to such obligation;






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






	 	(9)	 	if other than U.S. dollars, the currency or currencies (including
currency unit or units) in which the principal of, premium, if any, and
interest, if any, on the Securities of the series shall be payable, or in which
the Securities of the series shall be denominated, and the particular provisions
applicable;






	 	(10)	 	if the payments of principal of, premium, if any, or interest, if
any, on the Securities of the series are to be made, at the election of the
Company or a Holder, in a currency or currencies (including currency unit or
units) other than that in which such Securities are denominated or designated to
be payable, the currency or currencies (including currency unit or units) in
which such payments are to be made, the terms and conditions of such payments
and the manner in which the exchange rate with respect to such payments shall be
determined, and the particular provisions applicable thereto;






	 	(11)	 	if the amount of payments of principal of, premium, if any, and
interest, if any, on the Securities of the series shall be determined with
reference to an index, formula or other method (which index, formula or method
may be based, without limitation, on a currency or currencies (including
currency unit or units) other than that in which the Securities of the series
are denominated or designated to be payable), the index, formula or other method
by which such amounts shall be determined and any special voting or defeasance
provisions in connection therewith;






	 	(12)	 	if other than the principal amount thereof, the portion of the
principal amount of such Securities of the series which shall be payable upon
declaration of acceleration thereof pursuant to Section 6.02 or the method by
which such portion shall be determined;






	 	(13)	 	the Person to whom any interest on any Security of the series
shall be payable;




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






	 	(15)	 	any deletions from, modifications of or additions to the Events
of Default set forth in Section 6.01 or covenants of the Company set forth in
Article 4 pertaining to the Securities of the series;






	 	(16)	 	under what circumstances, if any, and with what procedures and
documentation the Company will pay additional amounts on the Securities of that
series held by a Person who is not a U.S. Person (including any definition of
such term) in respect of taxes, assessments or similar charges withheld or
deducted and, if so, whether the Company will have the option to redeem such
Securities rather than pay such additional amounts (and the terms of any such
option);






	 	(17)	 	the forms of the Securities of the series;






	 	(18)	 	if either or both of Sections 8.02 or 8.03 do not apply to the
Securities of the series, and if either or both of such Sections are not
applicable, such other means of defeasance or covenant defeasance as may be
specified for the Securities of such series;






	 	(19)	 	if other than the Trustee, the identity of the Registrar and any
Paying Agent;






	 	(20)	 	if the Securities of the series shall be issued in whole or in
part in global form, (A) the Depositary for such Global Securities, (B) whether
beneficial owners of interests in any Securities of the series in global form
may, pursuant to Section 2.08(f), exchange such interests for certificated
Securities of such series, to be registered in the names of or to be held by
such beneficial owners or their nominees and to be of like tenor of any
authorized form and denomination, and (C) if other than as provided in Section
2.08, the circumstances under which any such exchange may occur;






	 	(21)	 	any restrictions on the registration, transfer or exchange of the
Securities;






	 	(22)	 	if the Securities of the series may be issued or delivered
(whether upon original issuance or upon exchange of a temporary Security of such
series or otherwise), or any installment of principal or interest is payable,
only upon receipt of certain certificates or other documents or satisfaction of
other conditions in addition to those specified in this Indenture, the form and
terms of such certificates, documents or conditions;






	 	(23)	 	the terms and conditions of any right to convert or exchange
Securities of the series into or for other securities or property of the
Company;






	 	(24)	 	whether the Securities are secured or unsecured, and if secured,
the security and related terms in connection therewith (which shall be provided
for in a separate security agreement and/or other appropriate documentation),
each in form reasonably satisfactory to the Trustee; and




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	 	(25)	 	any other terms of the series (which terms shall not be
inconsistent with the provisions of this Indenture) including any terms which
may be required by or advisable under United States laws or regulations or
advisable (as determined by the Company) in connection with the marketing of
Securities of the series.





     (c) All Securities of any one series shall be substantially identical except as to
denomination and except as may otherwise be provided (i) by a Board Resolution, (ii) by action
taken pursuant to a Board Resolution and set forth, or determined in the manner provided, in the
related Officer’s Certificate or (iii) in an indenture supplemental hereto. All Securities of any
one series need not be issued at the same time and, unless otherwise provided, a series may be
reopened, without the consent of the Holders, for issuances of additional Securities of such
series. The Company may, subject to obtaining all necessary corporate approvals but without the
consent of any Holder of a Security, issue additional Securities in a series having the same CUSIP
number and the same ranking, interest rate, maturity and other terms as the other Securities of the
series. The Securities of each series shall be issuable only in fully registered form without
coupons.



     (d) If any of the terms of the Securities of any series are established by action taken
pursuant to a Board Resolution, a copy of such Board Resolution shall be delivered to the Trustee
at or prior to the delivery of the Officer’s Certificate setting forth, or providing the manner for
determining, the terms of the Securities of such series, and an appropriate record of any action
taken pursuant thereto in connection with the issuance of any Securities of such series shall be
delivered to the Trustee prior to the authentication and delivery thereof.



Section 2.03. Denominations.




     Unless otherwise provided as contemplated by Section 2.02, Securities of a series denominated
in Dollars shall be issuable in denominations of U.S. $1,000 and any integral multiple thereof.
Securities denominated in a foreign currency shall be issuable in such denominations as are
established with respect to such Securities in or pursuant to this Indenture.



Section 2.04. Execution and Authentication.




     An Officer shall sign the Securities for the Company by manual or facsimile signature.



     If an Officer whose signature is on a Security no longer holds that office at the time a
Security is authenticated, the Security shall nevertheless be valid.



     A Security shall not be valid until authenticated by the manual signature of an authorized
officer of the Trustee. The signature shall be conclusive evidence that the Security has been
authenticated under this Indenture.



     The Trustee shall, upon a written order of the Company signed by an Officer (an
“Authentication Order”), together with an Officer’s Certificate and an Opinion of Counsel,
authenticate Securities for original issue in the aggregate principal amount and pursuant to such
procedures acceptable to the Trustee as are stated in the Authentication Order. In addition to the
matters required by Section 12.05, such Officer’s Certificate and Opinion of Counsel shall cover
such other matters as the Trustee shall reasonably request.



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     The Trustee may appoint an authenticating agent acceptable to the Company to authenticate
Securities. An authenticating agent may authenticate Securities whenever the Trustee may do so.
Each reference in this Indenture to authentication by the Trustee includes authentication by such
agent. An authenticating agent has the same rights as an Agent to deal with Holders or an Affiliate
of the Company.



     Notwithstanding the foregoing, if any Security shall have been authenticated and delivered
hereunder but never issued and sold by the Company, and the Company shall deliver such Security to
the Trustee for cancellation as provided in Section 2.13 together with a written statement stating
that such Security has never been issued and sold by the Company, for all purposes of this
Indenture such Security shall be deemed never to have been authenticated and delivered hereunder
and shall not be entitled to the benefits of this Indenture.



Section 2.05. Registrar and Paying Agent; Appointment of Depositary.




     The Company shall maintain an office or agency where Securities may be presented for
registration of transfer or for exchange (“Registrar”) and an office or agency where Securities may
be presented for payment (“Paying Agent”). The Registrar shall keep a register of the Securities
and of their transfer and exchange. The Company may appoint one or more co-registrars and one or
more additional paying agents. The term “Registrar” includes any co-registrar and the term “Paying
Agent” includes any additional paying agent. Notwithstanding anything herein to the contrary, there
shall be only one register for the Securities. The Company may change any Paying Agent or Registrar
without notice to any Holder. The Company shall promptly notify the Trustee in writing of the name
and address of any Agent not a party to this Indenture. If the Company fails to appoint or maintain
another entity as Registrar or Paying Agent, the Trustee shall act as such. The Company or any of
its Subsidiaries may act as Paying Agent or Registrar.



     The Company initially appoints The Depository Trust Company to act as Depositary with respect
to the Global Securities.



     The Company initially appoints the Trustee to act as the Registrar and Paying Agent with
respect to the Securities and to act as Custodian with respect to the Global Securities.



Section 2.06. Paying Agent to Hold Money in Trust.




     The Company shall require each Paying Agent other than the Trustee to agree in writing that
the Paying Agent will hold in trust for the benefit of Holders or the Trustee all money held by the
Paying Agent for the payment of principal, premium or interest on the Securities or other payments
in respect of the Securities or otherwise held by it as Paying Agent, and will notify the Trustee
of any default by the Company in making any such payment when due. While any such default
continues, the Trustee may require a Paying Agent to pay all money held by it to the Trustee. The
Company at any time may require a Paying Agent to pay all money held by it to the Trustee. Upon
payment over to the Trustee, the Paying Agent (if other than the Company or a Subsidiary) shall
have no further liability for the money. If the Company or a Subsidiary acts as Paying Agent, it
shall segregate and hold in a separate trust fund for the benefit of the Holders all money held by
it as Paying Agent. Upon any bankruptcy or reorganization proceedings relating to the Company, the
Trustee shall serve as Paying Agent for the Securities.



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Section 2.07. Holder Lists.




     The Trustee shall preserve in as current a form as is reasonably practicable the most recent
list available to it of the names and addresses of all Holders and shall otherwise comply with TIA
§ 312(a). If the Trustee is not the Registrar, the Company shall furnish to the Trustee at least
seven Business Days before each Interest Payment Date and at such other times as the Trustee may
request in writing, a list in such form and as of such date as the Trustee may reasonably require
of the names and addresses of the Holders of Securities, and the Company shall otherwise comply
with TIA § 312(a).



Section 2.08. Transfer and Exchange.




     (a) Upon surrender for registration of transfer of any Security of any series at the office or
agency maintained pursuant to Section 4.02 in a place of payment for that series, the Company shall
execute, and the Trustee shall authenticate and deliver, in the name of the designated transferee
or transferees, one or more new Securities of the same series, of any authorized denominations and
of a same aggregate principal amount and like tenor and containing identical terms and provisions.



     (b) At the option of the Holder, Securities of any series (except a Security in global form)
may be exchanged for other Securities of the same series, of any authorized denominations, of a
same aggregate principal amount and like tenor and containing identical terms and provisions, upon
surrender of the Securities to be exchanged at such office or agency. Whenever any Securities are
so surrendered for exchange, the Company shall execute, and the Trustee shall authenticate and
deliver, the Securities which the Holder making the exchange is entitled to receive.



     (c) Notwithstanding any other provision of this Section, unless and until it is exchanged in
whole or in part for Securities in certificated form, a Security in global form representing all or
a portion of the Securities of a series may not be transferred except as a whole by the Depositary
for such series to a nominee of such Depositary or by a nominee of such Depositary to such
Depositary or another nominee of such Depositary or by such Depositary or any such nominee to a
successor Depositary for such series or a nominee of such successor Depositary.



     (d) If at any time the Depositary for the Securities of a series notifies the Company that it
is unwilling or unable to continue as Depositary for the Securities of such series or if at any
time the Depositary for the Securities of such series shall no longer be registered and in good
standing as a clearing agency under the Exchange Act, the Company shall appoint a successor
Depositary with respect to the Securities of such series. If a successor Depositary for the
Securities of such series is not appointed by the Company prior to the resignation of the
Depositary and, in any event, within 90 days after the Company receives such notice or becomes
aware of such ineligibility, the Company’s designation of the Depositary pursuant to Section
2.02(b)(20) shall no longer be effective with respect to the Securities of such series, and the
Company shall execute, and the Trustee, upon receipt of an Authentication Order for the
authentication and delivery of certificated Securities of such series of like tenor, shall
authenticate and deliver, Securities of such series of like tenor in certificated form, in
authorized denominations and in an aggregate principal amount equal to the principal amount of the
Security or Securities of such series of like tenor in global form in exchange for such Security or
Securities in global form. Upon the occurrence of an Event of Default, any Securities in book-entry
form only at the Depositary will be exchanged in a like manner for certificated Securities
registered in the name of the beneficial owner of such Securities or its nominee.



- 13 -









 





     (e) The Company may at any time in its sole discretion, and subject to the procedures of the
Depositary, determine that all (but not less than all) Securities of a series issued in global form
shall no longer be represented by such a Security or Securities in global form. In such event the
Company shall execute, and the Trustee, upon receipt of an Authentication Order for the
authentication and delivery of certificated Securities of such series of like tenor, shall
authenticate and deliver, Securities of such series of like tenor in certificated form, in
authorized denominations and in an aggregate principal amount equal to the principal amount of the
Security or Securities of such series of like tenor in global form in exchange for such Security or
Securities in global form.



     (f) If specified by the Company pursuant to Section 2.02 with respect to a series of
Securities, the Depositary for such series may surrender a Security in global form of such series
in exchange in whole or in part for Securities of such series in certificated form on such terms as
are acceptable to the Company and such Depositary. Thereupon, the Company shall execute, and the
Trustee shall authenticate and deliver, without service charge,




	 	(i)	 	to each Person specified by such Depositary a new
certificated Security or Securities of the same series of like tenor, of
any authorized denomination as requested by such Person in aggregate
principal amount equal to and in exchange for such Person’s beneficial
interest in the Security in global form; and






	 	(ii)	 	to such Depositary a new Security in global form of
like tenor in a denomination equal to the difference, if any, between the
principal amount of the surrendered Security in global form and the
aggregate principal amount of certificated Securities delivered to
Holders thereof.





     (g) Upon the exchange of a Security in global form for Securities in certificated form, such
Security in global form shall be canceled by the Trustee. Securities in certificated form issued in
exchange for a Security in global form pursuant to this Section shall be registered in such names
and in such authorized denominations as the Depositary for such Security in global form, pursuant
to instructions from its direct or Indirect Participants or otherwise, shall instruct the Trustee
in writing. The Trustee shall deliver such Securities to the Persons in whose names such Securities
are so registered.



     (h) Whenever any Securities are surrendered for exchange, the Company shall execute, and the
Trustee shall authenticate and deliver, the Securities which the Holder making the exchange is
entitled to receive.



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



     (j) Every Security presented or surrendered for registration of transfer or for exchange shall
(if so required by the Company, the Registrar or the Trustee) be duly endorsed, or be accompanied
by a written instrument of transfer in form satisfactory to the Company, the Registrar and the
Trustee duly executed by the Holder thereof or his attorney duly authorized in writing.



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     (k) No service charge shall be made for any registration of transfer or for any exchange of
Securities, but the Company may require payment of a sum sufficient to cover any tax or other
governmental charge that may be imposed in connection with any registration or transfer or exchange
of Securities, other than exchanges pursuant to Section 2.12, 9.05 or 3.06 not involving any
transfer.



     (l) The Company shall not be required (i) to issue, register the transfer of, or exchange any
Securities for a period beginning at the opening of business 15 days before the day of the mailing
of a notice of redemption of any such Securities selected for redemption and ending at the close of
business on the day of such mailing; or (ii) to register the transfer of or exchange any Security
so selected for redemption, in whole or in part, except the unredeemed portion of any Security
being redeemed in part.



     (m) The foregoing provisions relating to registration, transfer and exchange may be modified,
supplemented or superseded with respect to any series of Securities by a Board Resolution or in one
or more indentures supplemental hereto.



     (n) The following legend shall appear on the face of all Global Securities unless specifically
stated otherwise in the applicable provision of this Indenture:




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



     (o) At such time as all beneficial interests in a particular Global Security have been
exchanged for definitive Securities or a particular Global Security has been redeemed, repurchased
or canceled in whole and not in part, each such Global Security shall be returned to or retained
and canceled by the Trustee in accordance with Section 2.13 hereof. At any time prior to such
cancellation, if any beneficial interest in a Global Security is exchanged for or transferred to a
Person who will take delivery thereof in the form of a beneficial interest in another Global
Security or for definitive Securities, the principal amount of Securities represented by such
Global Security shall be reduced accordingly and an endorsement shall be made on such Global
Security by the Trustee or by the Depositary at the direction of the Trustee to reflect such
reduction; and if the beneficial interest is being exchanged for or transferred to a Person who
will take delivery thereof in the form of a beneficial interest in another Global Security, such
other Global Security shall be increased accordingly and an endorsement shall be made on such
Global Security by the Trustee or by the Depositary at the direction of the Trustee to reflect such
increase.



     (p) Prior to due presentment for the registration of a transfer of any Security, the Trustee,
any Agent and the Company may deem and treat the Person in whose name any Security is registered as
the absolute owner of such Security for the purpose of receiving payment of principal of and
(subject to the record date provisions of such Security) interest on such Securities and for all
other purposes, and neither the Trustee, any Agent nor the Company shall be affected by notice to
the contrary. Notwithstanding the foregoing, with respect to any Global Security, nothing herein
shall prevent the



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Company, the Trustee or any agent of the Company or the Trustee from giving effect to any
written certification, proxy or other authorization furnished by any Depositary, as a Holder, with
respect to such Global Security or impair, as between such Depositary and owners of beneficial
interests in such Global Security, the operation of customary practices governing the exercise of
the rights of such Depositary (or its nominee) as Holder of such Global Security.




     (q) None of the Company, the Trustee nor any agent of the Company or the Trustee will have any
responsibility or liability for any aspect of the records relating to or payments made on account
of beneficial ownership interests of a Global Security or maintaining, supervising or reviewing any
records relating to such beneficial ownership interests.



Section 2.09. Replacement Securities.




     If any mutilated Security is surrendered to the Trustee or the Company and the Trustee
receives evidence to its satisfaction of the destruction, loss or theft of any Security, the
Company shall issue and the Trustee, upon receipt of an Authentication Order, shall authenticate a
replacement Security if the Trustee’s requirements are met. If required by the Trustee or the
Company, an indemnity bond must be supplied by the Holder that is sufficient in the judgment of the
Trustee and the Company to protect the Company, the Trustee, any Agent and any authenticating agent
from any loss that any of them may suffer if a Security is replaced. The Company may charge for its
expenses in replacing a Security.



     Every replacement Security is an additional obligation of the Company and shall be entitled to
all of the benefits of this Indenture equally and proportionately with all other Securities duly
issued hereunder.



     In case any such mutilated, destroyed, lost or stolen Security has become or is about to
become due and payable, the Company in its discretion may, instead of issuing a new Security, pay
such Security.



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



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



Section 2.10. Outstanding Securities.




     The Securities outstanding at any time are all the Securities authenticated by the Trustee
except for those canceled by it, those delivered to it for cancellation, those reductions in the
interest in a Global Security effected by the Trustee in accordance with the provisions hereof, and
those described in this Section as not outstanding. Except as set forth in Section 2.11 hereof, a
Security does not cease to be outstanding because the Company or an Affiliate of the Company holds
the Security.



     If a Security is replaced pursuant to Section 2.09 hereof, it ceases to be outstanding unless
the Trustee receives proof satisfactory to it that the replaced Security is held by a “protected
purchaser”



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(within the meaning of Article 8 of the Uniform Commercial Code) or a Person with comparable
status under other applicable law.




     If the principal amount of any Security is considered paid under Section 4.01 hereof, it
ceases to be outstanding and interest on it ceases to accrue.



     If the Paying Agent (other than the Company, a Subsidiary or an Affiliate of any thereof)
holds, on a redemption date or maturity date, money sufficient to pay Securities payable on that
date, then on and after that date such Securities shall be deemed to be no longer outstanding and
shall cease to accrue interest.



Section 2.11. Treasury Securities.




     In determining whether the Holders of the required principal amount of Securities have
concurred in any direction, waiver or consent, Securities owned by the Company, or by any Person
directly or indirectly controlling or controlled by or under direct or indirect common control with
the Company, shall be considered as though not outstanding, except that for the purposes of
determining whether the Trustee shall be protected in relying on any such direction, waiver or
consent, only Securities that a Responsible Officer of the Trustee actually knows are so owned
shall be so disregarded.



Section 2.12. Temporary Securities.




     Until certificates representing Securities are ready for delivery, the Company may prepare and
the Trustee, upon receipt of an Authentication Order, shall authenticate temporary Securities.
Temporary Securities shall be substantially in the form of certificated Securities but may have
variations that the Company considers appropriate for temporary Securities and as shall be
reasonably acceptable to the Trustee. Without unreasonable delay, the Company shall prepare and the
Trustee shall authenticate definitive Securities in exchange for temporary Securities.



     Holders of temporary Securities shall be entitled to all of the benefits of this Indenture.



Section 2.13. Cancellation.




     The Company at any time may deliver Securities to the Trustee for cancellation. The Registrar
and Paying Agent shall forward to the Trustee any Securities surrendered to them for registration
of transfer, exchange or payment. The Trustee and no one else shall cancel all Securities
surrendered for registration of transfer, exchange, payment, replacement or cancellation and shall
dispose of canceled Securities in accordance with its customary procedures (subject to the record
retention requirement of the Exchange Act). Certification of the disposition of all canceled
Securities shall be delivered to the Company. The Company may not issue new Securities to replace
Securities that it has paid or that have been delivered to the Trustee for cancellation.



Section 2.14. Defaulted Interest.




     If the Company defaults in a payment of interest on the Securities, it shall pay the defaulted
interest in any lawful manner plus, to the extent lawful, interest payable on the defaulted
interest, to the Persons who are Holders on a subsequent special record date, in each case at the
rate provided in the Securities. The Company shall notify the Trustee in writing of the amount of
defaulted interest proposed



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to be paid on each Security and the date of the proposed payment. The Company shall fix or
cause to be fixed each such special record date and payment date; provided that no such special
record date shall be less than 10 days prior to the related payment date for such defaulted
interest. At least 15 days before the special record date, the Company (or, upon the written
request of the Company, the Trustee in the name and at the expense of the Company) shall mail or
cause to be mailed to Holders a notice that states the special record date, the related payment
date and the amount of such interest to be paid. Subject to the foregoing provisions of this
Section, each Security delivered under this Indenture upon registration of transfer of or in
exchange for or in lieu of any other Security shall carry the rights to interest accrued and
unpaid, and to accrue, which were carried by such other Security.




ARTICLE 3

REDEMPTION AND PREPAYMENT



Section 3.01. Applicability of Article.




     The provisions of this Article shall be applicable to the Securities of any series which are
redeemable before their maturity or to any sinking fund for the retirement of Securities of a
series except as otherwise specified as contemplated by Section 2.02 for Securities of such series.



Section 3.02. Selection of Securities to be Redeemed.




     If less than all of the Securities of any series are to be redeemed at any time, the Trustee
shall select the Securities of such series to be redeemed among the Holders of the Securities of
such series by such method as the Trustee deems fair and appropriate; provided that no Securities
of $1,000 or less shall be redeemed in part. The particular Securities of such series to be
redeemed shall be selected, unless otherwise provided herein, not less than 15 nor more than 60
days prior to the redemption date by the Trustee from the outstanding Securities of the series not
previously called for redemption.



     The Trustee shall promptly notify the Company in writing of the Securities selected for
redemption and, in the case of any Security selected for partial redemption, the principal amount
thereof to be redeemed. Securities and portions of Securities selected shall be in amounts of
$1,000 or whole multiples of $1,000; except that if all of the Securities of a series of a Holder
are to be redeemed, the entire outstanding amount of Securities of such series held by such Holder,
even if not a multiple of $1,000, shall be redeemed. A new Security of the same series and tenor in
principal amount equal to the unredeemed portion thereof will be issued in the name of the Holder
thereof upon cancellation of the original Security. Securities called for redemption shall become
due on the redemption date. On and after the redemption date, interest will cease to accrue on the
Securities or portions of them called for redemption. Except as provided in this Section 3.02,
provisions of this Indenture that apply to Securities called for redemption shall also apply to
portions of Securities called for redemption.



Section 3.03. Notice of Redemption.




     The election of the Company to redeem any Securities shall be evidenced by a Board Resolution
or in another manner specified as contemplated by Section 2.02 for such Securities. In case of any
redemption at the election of the Company, the Company shall, at least 15 days prior to the
redemption date fixed by the Company (unless a shorter notice shall be satisfactory to the
Trustee), notify the Trustee of such redemption date, of the principal amount of Securities of such
series to be redeemed and, if applicable, of the tenor of the Securities to be redeemed. In the
case of any redemption of



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Securities (a) prior to the expiration of any restriction on such redemption provided in the
terms of such Securities or elsewhere in this Indenture, or (b) pursuant to an election of the
Company which is subject to a condition specified in the terms of such Securities or elsewhere in
this Indenture, the Company shall furnish the Trustee with an Officer’s Certificate evidencing
compliance with such restriction or condition.




     At least 15 days but not more than 60 days before a redemption date, the Company shall mail or
cause to be mailed, by first class mail, a notice of redemption to each Holder whose Securities are
to be redeemed at its registered address.



     The notice shall identify the Securities to be redeemed, including the series thereof, and
shall state:



     (a) the redemption date;



     (b) the redemption price;



     (c) the name and address of the Paying Agent;



     (d) that Securities called for redemption must be surrendered to the Paying Agent to collect
the redemption price;



     (e) that, unless the Company defaults in making such redemption payment, interest on
Securities called for redemption will cease to accrue on and after the redemption date;



     (f) that in the case of any Security being redeemed in part, the portion of the principal
amount of such Security to be redeemed and that, after the redemption date upon surrender of such
Security, a new Security or Securities of the same series and tenor in principal amount equal to
the unredeemed portion shall be issued upon cancellation of the original;



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



     (h) that no representation is made as to the correctness or accuracy of the CUSIP number, if
any, listed in such notice or printed on the Securities.



     At the Company’s request, the Trustee shall give the notice of redemption in the Company’s
name and at the Company’s expense; provided, however, that the Company shall have delivered to the
Trustee, at least 15 days prior to the redemption date, an Officer’s Certificate requesting that
the Trustee give such notice and setting forth the information to be stated in such notice as
provided in the preceding paragraph.



Section 3.04. Effect of Notice of Redemption.




     Once notice of redemption is mailed in accordance with Section 3.03 hereof, Securities called
for redemption become irrevocably due and payable on the redemption date at the redemption price. A
notice of redemption may not be conditional.



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Section 3.05. Deposit of Redemption or Purchase Price.




     On or prior to any redemption date or purchase date (provided that any deposit made on any
redemption or purchase date must be made prior to 10:00 a.m. Eastern Time), the Company shall
deposit with the Trustee or with the Paying Agent money in immediately available funds sufficient
to pay the redemption or purchase price of and accrued interest, if any, on all Securities to be
redeemed or purchased on that date. The Trustee or the Paying Agent shall promptly return to the
Company any money deposited with the Trustee or the Paying Agent by the Company in excess of the
amounts necessary to pay the redemption or purchase price of, and accrued interest on, all
Securities to be redeemed or purchased.



Section 3.06. Securities Redeemed or Purchased in Part.




     Upon surrender of a Security that is redeemed or purchased in part, the Company shall issue
and, upon the Company’s written request, the Trustee shall authenticate for the Holder at the
expense of the Company a new Security of the same series and tenor equal in principal amount to the
unredeemed or unpurchased portion of the Security surrendered.



Section 3.07. Mandatory Redemption; Sinking Fund.




     The Company shall not be required to make mandatory redemption or sinking fund payments with
respect to the Securities, unless otherwise specified in the terms of a particular series of
Securities. If a mandatory or optional sinking fund is specified in the terms of a particular
series of Securities, the following provisions will apply thereto (unless otherwise specified):



     The minimum amount of any sinking fund payment provided for by the terms of Securities of any
series is herein referred to as a “mandatory sinking fund payment”, and any payment in excess of
such minimum amount provided for by the terms of Securities of any series is herein referred to as
an “optional sinking fund payment.” The last date on which any such payment may be made is herein
referred to as a “sinking fund payment date.”



     In lieu of making all or any part of any mandatory sinking fund payment with respect to any
Securities of a series in cash, the Company may at its option (a) deliver to the Trustee Securities
of that series theretofore purchased by the Company and (b) may apply as a credit Securities of
that series which have been redeemed either at the election of the Company pursuant to the terms of
such Securities or through the application of optional sinking fund payments pursuant to the next
succeeding paragraph, in each case in satisfaction of all or any part of any mandatory sinking fund
payment, provided that such Securities have not been previously so credited. Each such Security so
delivered or applied as a credit shall be credited at the sinking fund redemption price for such
Securities and the amount of any mandatory sinking fund shall be reduced accordingly. If the
Company intends so to deliver or credit such Securities with respect to any mandatory sinking fund
payment it shall deliver to the Trustee at least 15 days prior to the next succeeding sinking fund
payment date for such series (a) an Officer’s Certificate specifying the portion of such sinking
fund payment, if any, to be satisfied by payment of cash and the portion of such sinking fund
payment, if any, which is to be satisfied by delivering and crediting such Securities, and stating
the basis of such credit and that such Securities have not previously been so credited, and (b) any
Securities to be so delivered. All Securities so delivered to the Trustee shall be cancelled by the
Trustee and no Securities shall be authenticated in lieu thereof. If the Company



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fails to deliver such certificate and Securities at or before the time provided above, the
Company shall not be permitted to satisfy any portion of such mandatory sinking fund payment by
delivery or credit of Securities.




     At its option the Company may pay into the sinking fund for the retirement of Securities of
any particular series, on or before each sinking fund payment date for such series, any additional
sum in cash as specified by the terms of such series of Securities. If the Company intends to
exercise its right to make any such optional sinking fund payment, it shall deliver to the Trustee
at least 15 days prior to the next succeeding sinking fund payment date for such series of
Securities an Officer’s Certificate stating that the Company intends to exercise such optional
right and specifying the amount which the Company intends to pay on such sinking fund payment date.
If the Company fails to deliver such certificate at or before the time provided above, the Company
shall not be permitted to make any optional sinking fund payment with respect to such sinking fund
payment date. To the extent that such right is not exercised in any year it shall not be cumulative
or carried forward to any subsequent year.



     If the sinking fund payment or payments (mandatory or optional) made in cash plus any unused
balance of any preceding sinking fund payments made in cash shall exceed $50,000 (or a lesser sum
if the Company shall so request) with respect to the Securities of any particular series, it shall
be applied by the Trustee or one or more Paying Agents on the next succeeding sinking fund payment
date to the redemption of Securities of such series at the sinking fund redemption price together
with accrued interest to the date fixed for redemption. The Trustee shall select, in the manner
provided in Section 3.02, for redemption on such sinking fund payment date a sufficient principal
amount of Securities of such series to exhaust said cash, as nearly as may be, and the Trustee
shall, at the expense and in the name of the Company, thereupon cause notice of redemption of
Securities of such series to be given in substantially the manner and with the effect provided in
Sections 3.02 and 3.03 for the redemption of Securities of that series in part at the option of the
Company, except that the notice of redemption shall also state that the Securities of such series
are being redeemed for the sinking fund. Any sinking fund moneys not so applied or allocated by the
Trustee or any Paying Agent to the redemption of Securities of that series shall be added to the
next cash sinking fund payment received by the Trustee or the Paying Agent and, together with such
payment, shall be applied in accordance with the provisions of this Section 3.07. Any and all
sinking fund moneys held by the Trustee or any Paying Agent on the maturity date of the Securities
of any particular series, and not held for the payment or redemption of particular Securities of
such series, shall be applied by the Trustee or such Paying Agent, together with other moneys, if
necessary, to be deposited sufficient for the purpose, to the payment of the principal of the
Securities of that series at maturity. On or before each sinking fund payment date, the Company
shall pay to the Trustee or to one or more Paying Agents in cash a sum equal to all interest
accrued to the date fixed for redemption on Securities to be redeemed on the next following sinking
fund payment date pursuant to this Section. Neither the Trustee nor any Paying Agent shall redeem
any Securities of a series with sinking fund moneys, and the Trustee shall not mail any notice of
redemption of Securities for such series by operation of the sinking fund, during the continuance
of a default in payment of interest on such Securities or of any Event of Default (other than an
Event of Default occurring as a consequence of this paragraph), except that if the notice of
redemption of any Securities shall theretofore have been mailed in accordance with the provisions
hereof, the Trustee or any paying agent shall redeem such Securities if cash sufficient for that
purpose shall be deposited with the Trustee or such paying agent for that purpose in accordance
with the terms of this Article 3. Except as aforesaid, any moneys in the sinking fund for such
series at the time when any such default or Event of Default shall occur and



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any moneys thereafter paid into the sinking fund shall, during the continuance of such default
or Event of Default, be held as security for the payment of all such Securities; provided, however, that in case such Event of Default or default shall have been
cured or waived as provided herein, such moneys shall thereafter be applied on the next succeeding
sinking fund payment date on which such moneys may be applied pursuant to the provisions of this
Section 3.07.



ARTICLE 4

COVENANTS



Section 4.01. Payment of Securities.




     The Company shall pay or cause to be paid the principal of, premium, if any, and interest on
the Securities on the dates and in the manner provided in the Securities. Principal, premium, if
any, and interest shall be considered paid on the date due if the Paying Agent, if other than the
Company or a Subsidiary thereof, holds as of 10:00 a.m., Eastern Time, on the due date money
deposited by the Company in immediately available funds and designated for and sufficient to pay
all principal, premium, if any, and interest then due.



Section 4.02. Maintenance of Office or Agency.




     The Company shall maintain in the State of New York or such other place of payment specified
in the Security or related supplemental indenture (each, a “Place of Payment”), an office or agency
(which may be an office of the Trustee or an affiliate of the Trustee, Registrar or co-Registrar)
where Securities may be surrendered for registration of transfer or for exchange and where notices
and demands to or upon the Company in respect of the Securities and this Indenture may be served.
The Company shall give prompt written notice to the Trustee of the location, and any change in the
location, of such office or agency. If at any time the Company shall fail to maintain any such
required office or agency or shall fail to furnish the Trustee with the address thereof, such
presentations, surrenders, notices and demands may be made or served at the Trustee’s principal
corporate trust office in the Borough of Manhattan, the City of New York, which currently is
located at [_______________], Attention: [_________________].



     The Company may also from time to time designate one or more other offices or agencies where
the Securities may be presented or surrendered for any or all such purposes and may from time to
time rescind such designations; provided, however, that no such designation or rescission shall in
any manner relieve the Company of its obligation to maintain an office or agency in the Place of
Payment for such purposes. The Company shall give prompt written notice to the Trustee of any such
designation or rescission and of any change in the location of any such other office or agency.



Section 4.03. Reports.




     (a) The Company covenants and agrees to file with the Trustee, and to provide by mail to each
Holder, within 15 days after the Company files the same with the SEC, copies of the annual reports,
quarterly reports and the information, documents and other reports which the Company is required to
file with the SEC pursuant to Section 13 or Section 15(d) of the Exchange Act provided, however,
that if such reports, documents or other information is publicly available on the SEC’s



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EDGAR system (or any successor thereto) within 15 days of filing the same with the SEC, such
reports, documents or other information will be deemed to be timely filed with the Trustee and
provided to the Holders pursuant to this Section 4.03.




     (b) The Company covenants and agrees to file with the Trustee and the SEC, in accordance with
the rules and regulations prescribed from time to time by the SEC, such additional information,
documents and reports with respect to compliance by the Company with the conditions and covenants
provided for in this Indenture as may be required from time to time by such SEC rules and
regulations.



     (c) The Company covenants and agrees to furnish to the Trustee within 120 days of the end of
each fiscal year, the compliance certificate required by TIA § 314(a)(4).



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



Section 4.04. Compliance Certificate.




     (a) The Company shall deliver to the Trustee, within 90 days after the end of each fiscal
year, an Officer’s Certificate stating that a review of the activities of the Company and its
Subsidiaries during the preceding fiscal year has been made under the supervision of the signing
Officers with a view to determining whether the Company has kept, observed, performed and fulfilled
its obligations under this Indenture, and further stating, as to each such Officer signing such
certificate, that to the best of his or her knowledge the Company has kept, observed, performed and
fulfilled each and every covenant contained in this Indenture and is not in default in the
performance or observance of any of the terms, provisions and conditions of this Indenture (or, if
a Default, Event of Default or other instance of non-compliance with any of the terms of this
Indenture shall have occurred, describing all such Defaults, Events of Default or instances of
non-compliance of which he or she may have knowledge and what action the Company is taking or
proposes to take with respect thereto) and that to the best of his or her knowledge no event has
occurred and remains in existence by reason of which payments on account of the principal of,
premium, if any, or interest on the Securities is prohibited or if such event has occurred, a
description of the event and what action the Company is taking or proposes to take with respect
thereto.



     (b) The Company shall, so long as any of the Securities are outstanding, deliver to the
Trustee, forthwith upon any Officer of the Company becoming aware of any Default or Event of
Default, an Officer’s Certificate specifying such Default or Event of Default and what action the
Company is taking or proposes to take with respect thereto.



Section 4.05. Continued Existence.




     Subject to Article 5 hereof, the Company shall do or cause to be done all things necessary to
preserve and keep in full force and effect (i) its existence as a corporation or other permitted
entity, and the corporate, partnership or other existence of each of its Significant Subsidiaries,
in accordance with the respective organizational documents (as the same may be amended from time to
time) of the Company or any such Significant Subsidiary and (ii) the rights (charter and
statutory), licenses and



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franchises of the Company and any of its Significant Subsidiaries; provided, however, that the
Company shall not be required to preserve any such right, license or franchise, or the corporate,
partnership or other existence of any of its Significant Subsidiaries, if the Board of Directors
shall determine that the preservation thereof is no longer desirable in the conduct of the business
of the Company and its Significant Subsidiaries, taken as a whole, and that the loss thereof is not
adverse in any material respect to the Holders of the Securities.




Section 4.06. Stay, Extension and Usury Laws.




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



ARTICLE 5

SUCCESSORS



Section 5.01. Merger, Consolidation, or Sale of Assets.




     The Company may consolidate or amalgamate with, merge into, convert itself into, or sell,
assign, transfer, lease, convey or otherwise dispose of (including any such disposition that might
be deemed to occur as a result of the conversion of the Company into another form of organization)
all or substantially all of its properties or assets in one or more related transactions, to
another Person (other than an individual, a government or an agency or political subdivision of a
government), but only if (a) either (i) the Company is the surviving entity or (ii) the Person
formed by or surviving any such consolidation, amalgamation, merger or conversion (if other than
the Company) or to which such sale, assignment, transfer, lease, conveyance or other disposition
shall have been made is a Person organized or existing under the laws of the United States, any
state thereof, or the District of Columbia, the United Kingdom or Bermuda; (b) the Person formed by
or surviving any such consolidation, amalgamation, merger or conversion (if other than the Company)
or the Person to which such sale, assignment, transfer, lease, conveyance or other disposition
shall have been made assumes all the obligations of the Company under the Securities and this
Indenture pursuant to a supplemental indenture in a form reasonably satisfactory to the Trustee;
and (c) immediately after such transaction no Default or Event of Default exists. If the Company
requests the Trustee to enter into any supplemental indenture, or to take any other action, as a
result of such consolidation, amalgamation, merger, sale, assignment, transfer, lease, conveyance
or other disposition, the Company will also furnish to the Trustee an Officer’s Certificate and an
Opinion of Counsel, each to the effect that the conditions precedent set forth in this Section 5.01
have been complied with.



Section 5.02. Successor Person Substituted.




     Upon any consolidation, amalgamation, merger or conversion, or any sale, assignment, transfer,
lease, conveyance or other disposition of all or substantially all of the properties or assets of
the Company in accordance with Section 5.01 hereof, the successor Person formed by such
consolidation or



- 24 -









 




amalgamation or into or with which the Company is merged or converted or to which such sale,
assignment, transfer, lease, conveyance or other disposition is made shall succeed to, and be
substituted for (so that from and after the date of such consolidation, amalgamation, merger,
conversion, sale, assignment, transfer, lease, conveyance or other disposition, the provisions of
this Indenture referring to the “Company” shall refer instead to the successor Person and not to
the Company), and may exercise every right and power of the Company under this Indenture with the
same effect as if such successor Person had been named as the Company herein; provided, however,
that the predecessor Company shall not be relieved from the obligation to pay the principal of,
premium, if any, and interest on the Securities except in the case of a sale, assignment, transfer,
conveyance or other disposition (other than a lease) of all or substantially all of the Company’s
properties or assets that meets the requirements of Section 5.01 hereof.




ARTICLE 6

DEFAULTS AND REMEDIES



Section 6.01. Events of Default.




     An “Event of Default,” with respect to Securities of any series shall have occurred if:



     (a) the Company defaults in the payment when due of interest on, or with respect to, any
Security of that series and such default continues for a period of 30 days;



     (b) the Company defaults in the payment when due of principal of or premium, if any, on, or a
sinking fund payment with respect to, any Security of that series when the same becomes due and
payable at maturity, upon redemption or otherwise;



     (c) the Company fails to comply with any of the provisions of Section 5.01 hereof;



     (d) the Company fails to observe or perform any other covenant, representation, warranty or
other agreement in this Indenture, with respect to any Security of that series for 60 days after
notice to comply;



     (e) the Company, pursuant to or within the meaning of any Bankruptcy Law:




	 	(i)	 	commences a voluntary case;






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






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






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






	 	(v)	 	generally is not paying its debts as they become
due;





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



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	 	(i)	 	is for relief against the Company in an involuntary
case;






	 	(ii)	 	appoints a custodian of the Company for all or
substantially all of the property of the Company; or






	 	(iii)	 	orders the liquidation of the Company;




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




     (g) any other event provided with respect to Securities of that series in the terms thereof as
contemplated by Section 2.02 hereof shall occur.



     The term “Custodian” as used in this Article 6 means any receiver, trustee, assignee,
liquidator or similar official under any Bankruptcy Law.



     A Default under clause (d) with respect to the Securities of any series is not an Event of
Default until the Trustee notifies the Company, or the Holders of at least 25% in principal amount
of the then outstanding Securities of all series affected by the Default (treating all such series
as a single class) notify the Company and the Trustee, of the Default and the Company does not cure
the Default within 60 days after receipt of the notice. The notice must specify the Default, demand
that it be remedied and state that the notice is a “Notice of Default.”



Section 6.02. Acceleration.




     If any Event of Default with respect to one or more series of Securities (other than an Event
of Default specified in clause (e) or (f) of Section 6.01 hereof) occurs and is continuing, the
Trustee or the Holders of at least 25% in principal amount of the then outstanding Securities of
all series with respect to which an Event of Default shall have occurred and be continuing
(treating all such series as a single class) may declare all the Securities of all such series to
be due and payable immediately by a notice in writing to the Company (and to the Trustee if given
by Holders). Upon any such declaration, the principal of, premium, if any, and accrued and unpaid
interest with respect to the Securities of all such series shall become due and payable
immediately. Notwithstanding the foregoing, if an Event of Default specified in clause (e) or (f)
of Section 6.01 hereof occurs, all outstanding Securities of all series shall be due and payable
immediately without further action or notice.



Section 6.03. Other Remedies.




     If an Event of Default with respect to a series of Securities occurs and is continuing, the
Trustee may pursue any available remedy to collect the payment of principal, premium, if any, and
interest on the Securities of such series or to enforce the performance of any provision of the
Securities of such series or this Indenture with respect to such series.



     The Trustee may maintain a proceeding even if it does not possess any of the Securities or
does not produce any of them in the proceeding. A delay or omission by the Trustee or any Holder of
a Security in exercising any right or remedy accruing upon an Event of Default shall not impair the
right or remedy or constitute a waiver of or acquiescence in the Event of Default. All remedies are
cumulative to the extent permitted by law.



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Section 6.04. Waiver of Past Defaults; Rescission of Acceleration.




     Holders of a majority in aggregate principal amount of the then outstanding Securities of all
series affected (treating all such series as a single class) may, by notice to the Trustee, on
behalf of the Holders of all of the Securities of all such series, waive an existing Default or
Event of Default with respect to such series and its consequences hereunder (including in
connection with an offer to purchase or exchange), except a continuing Default or Event of Default
in the payment of the principal of, premium, if any, interest on, or any sinking fund payment with
respect to, the Securities of such series, and except a continuing Default or Event of Default
under any provision of this Indenture that, under Section 9.02, cannot be modified or waived
without the consent of a greater number of Holders or of each Holder affected. Upon any such
waiver, such Default or Event of Default shall be deemed to have been cured for every purpose of
this Indenture, but no such waiver shall extend to any subsequent or other Default or Event of
Default or impair any right consequent thereon. The Holders of a majority in aggregate principal
amount of the then outstanding Securities of all series affected (treating all such series as a
single class) may also rescind an acceleration and its consequences with respect to all such
series, including any related payment default that resulted from such acceleration, but not
including any other payment default.



Section 6.05. Control by Majority.




     Holders of a majority in principal amount of the then outstanding Securities of all series
with respect to which an Event of Default shall have occurred and be continuing (treating all such
series as a single class) may direct the time, method and place of conducting any proceeding for
exercising any remedy available to the Trustee or exercising any trust or power conferred on it;
provided that:




	 	(i)	 	such direction shall not be in conflict with any
law or rule or with this Indenture;






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






	 	(iii)	 	the Trustee need not take any action which might
involve it in personal liability or be unduly prejudicial to the Holders
of Securities of such series not joining therein.





Section 6.06. Limitation on Suits.




     A Holder of a Security of any series may pursue a remedy with respect to this Indenture or the
Securities of such series only if:



     (a) the Holder of a Security of any or all series affected gives to the Trustee written notice
of a continuing Event of Default;



     (b) the Holders of at least 25% in principal amount of the then outstanding Securities of all
affected series (treating all such series as a single class) make a written request to the Trustee
to pursue the remedy;



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     (c) such Holder or Holders offer and, if requested, provide to the Trustee indemnity
satisfactory to the Trustee against any loss, liability or expense;



     (d) the Trustee does not comply with the request within 30 days after receipt of such notice,
request and offer and, if requested, provision of indemnity; and



     (e) during such 30-day period the Holders of a majority in principal amount of the then
outstanding Securities of all such series (treating all such series as a single class) do not give
the Trustee a direction inconsistent with the request.



     A Holder of a Security may not use this Indenture to prejudice the rights of another Holder of
a Security or to obtain a preference or priority over another Holder of a Security.



Section 6.07. Rights of Holders of Securities to Receive Payment.




     Notwithstanding any other provision of this Indenture, the right of any Holder of a Security
of any series to receive payment of principal, premium, if any, and interest on such Security, on
or after the respective due dates expressed or provided for in such Security (including in
connection with an offer to purchase), or to bring suit for the enforcement of any such payment on
or after such respective dates, shall not be impaired or affected without the consent of such
Holder.



Section 6.08. Collection Suit by Trustee.




     If an Event of Default specified in Section 6.01(a) or (b) occurs and is continuing with
respect to any series of Securities, the Trustee is authorized to recover judgment in its own name
and as Trustee of an express trust against the Company for the whole amount of principal of,
premium, if any, and interest remaining unpaid on such Securities and interest on overdue principal
and, to the extent lawful, interest at the rate provided for in such Securities and such further
amount as shall be sufficient to cover the costs and expenses of collection, including the
reasonable compensation, expenses, disbursements and advances of the Trustee, its agents and
counsel.



Section 6.09. Trustee May File Proofs of Claim.




     The Trustee is authorized 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 the
reasonable compensation, expenses, disbursements and advances of the Trustee, its agents and
counsel) and the Holders of the Securities of any series allowed in any judicial proceedings
relative to the Company (or any other obligor upon the Securities), its creditors or its property
and shall be entitled and empowered to collect, receive and distribute any money or other property
payable or deliverable on any such claims and any custodian in any such judicial proceeding is
hereby authorized by each Holder to make such payments to the Trustee, and in the event that the
Trustee shall consent to the making of such payments directly to the Holders, to pay to the Trustee
any amount due to it for the reasonable compensation, expenses, disbursements and advances of the
Trustee, its agents and counsel, and any other amounts due the Trustee under Section 7.07 hereof.
To the extent that the payment of any such compensation, expenses, disbursements and advances of
the Trustee, its agents and counsel, and any other amounts due the Trustee under Section 7.07
hereof out of the estate in any such proceeding, shall be denied for any reason, payment of the
same shall be secured by a lien on, and shall be paid out of, any and all distributions, dividends,
money, securities and other properties that the Holders may be entitled to



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




Section 6.10. Priorities.




     If the Trustee collects any money or other property pursuant to this Article, it shall pay out
the money or other property in the following order:



     First: to the Trustee, its agents and attorneys for amounts due under Section 7.07 hereof,
including payment of all compensation, expense and liabilities incurred, and all advances made, by
the Trustee and the costs and expenses of collection;



     Second: subject to Article 10, to Holders of Securities for amounts due and unpaid on the
Securities for principal, premium, if any, interest and any other amounts, ratably, without
preference or priority of any kind, according to the amounts due and payable on the Securities for
principal, premium, if any, interest and other amounts, respectively; and



     Third: subject to Article 10, to the Company or to such party as a court of competent
jurisdiction shall direct.



     The Trustee may fix a record date and payment date for any payment to Holders of Securities
pursuant to this Section 6.10.



Section 6.11. Undertaking for Costs.




     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 a Trustee, a court in its discretion
may require the filing by any party litigant in the suit of an undertaking to pay the costs of the
suit, and the court in its discretion may assess reasonable costs, including reasonable attorneys’
fees, against any party litigant in the suit, having due regard to the merits and good faith of the
claims or defenses made by the party litigant. This Section does not apply to a suit by the
Trustee, a suit by a Holder of a Security pursuant to Section 6.07 hereof, or a suit by Holders of
more than 10% in principal amount of the then outstanding Securities of any series.



ARTICLE 7

TRUSTEE



Section 7.01. Duties of Trustee.




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



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



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	 	(i)	 	the duties of the Trustee shall be determined
solely by the express provisions of this Indenture or an indenture
supplemental hereto, and the Trustee need perform only those duties that
are specifically set forth in this Indenture or an indenture supplemental
hereto and no others, and no implied covenants or obligations shall be
read into this Indenture or an indenture supplemental hereto against the
Trustee; and






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





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




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






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






	 	(iii)	 	the Trustee shall not be liable with respect to
any action it takes or omits to take in good faith in accordance with a
direction received by it pursuant to Section 6.05 hereof.





     (d) Whether or not therein expressly so provided, every provision of this Indenture that in
any way relates to the Trustee is subject to paragraphs (a), (b), and (c) of this Section.



     (e) No provision of this Indenture shall require the Trustee to expend or risk its own funds
or incur any liability.



     (f) The Trustee shall not be liable for interest on any money received by it except as the
Trustee may agree in writing with the Company. Money held in trust by the Trustee need not be
segregated from other funds except to the extent required by law.



Section 7.02. Rights of Trustee.




     (a) The Trustee may conclusively rely upon any document believed by it to be genuine and to
have been signed or presented by the proper Person. The Trustee need not investigate any fact or
matter stated in the document.



     (b) Before the Trustee acts or refrains from acting, it may require an Officer’s Certificate
or an Opinion of Counsel or both covering such matters as it shall reasonably request. The Trustee
shall not be liable for any action it takes or omits to take in good faith in reliance on such
Officer’s Certificate or



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




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



     (d) The Trustee shall not be liable for any action it takes or omits to take in good faith
that it believes to be authorized or within the rights or powers conferred upon it by this
Indenture.



     (e) Unless otherwise specifically provided in this Indenture, any demand, request, direction
or notice from the Company shall be sufficient if signed by an Officer of the Company.



     (f) The Trustee shall be under no obligation to exercise any of the rights or powers vested in
it by this Indenture at the request or direction of any of the Holders unless such Holders shall
have offered to the Trustee reasonable security or indemnity satisfactory to it against the costs,
expenses and liabilities that might be incurred by it in compliance with such request or direction.



     (g) The Trustee shall not be charged with knowledge or deemed to have notice of any Default or
Event of Default unless a Responsible Officer of the Trustee shall have actual knowledge thereof or
unless the Trustee shall have received notice thereof in accordance with Section 12.02.



     (h) The Trustee shall not be bound to make any investigation into the facts or matters stated
in any resolution, certificate, statement, instrument, opinion, report, notice, request, direction,
consent, order, bond, debenture, note, other evidence of indebtedness or other paper or document,
but the Trustee, in its discretion, may make such further inquiry or investigation into such facts
or matters as it may see fit, and, if the Trustee shall determine to make such further inquiry or
investigation, it shall be entitled to examine the books, records and premises of the Company,
personally or by agent or attorney at the sole cost of the Company and shall incur no liability or
additional liability of any kind by reason of such inquiry or investigation.



     (i) In no event shall the Trustee be responsible or liable for special, indirect, or
consequential loss or damage of any kind whatsoever (including, but not limited to, loss of profit)
irrespective of whether the Trustee has been advised of the likelihood of such loss or damage and
regardless of the form of action.



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



     (k) The Trustee may request that the Company deliver a certificate setting forth the names of
individuals and/or titles of officers authorized at such time to take specified actions pursuant to
this Indenture.



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Section 7.03. Individual Rights of Trustee.




     The Trustee in its individual or any other capacity may become the owner or pledgee of
Securities and may otherwise deal with the Company or any Affiliate of the Company with the same
rights it would have if it were not Trustee. However, in the event that the Trustee acquires any
conflicting interest (within the meaning of TIA § 310(b)) it must eliminate such conflicting
interest within 90 days after Default, apply to the SEC for permission to continue as trustee, or
resign. Any Agent may do the same with like rights and duties.



Section 7.04. Trustee’s Disclaimer.




     The Trustee shall not be responsible for and makes no representation as to the validity or
adequacy of this Indenture or the Securities; it shall not be accountable for the Company’s use of
the proceeds from the Securities or any money paid to the Company or upon the Company’s direction
under any provision of this Indenture; it shall not be responsible for the use or application of
any money received by any Paying Agent other than the Trustee; and it shall not be responsible for
any statement or recital herein or any statement in the Securities or any other document in
connection with the sale of the Securities or pursuant to this Indenture other than its certificate
of authentication.



Section 7.05. Notice of Defaults.




     If a Default or Event of Default occurs and is continuing and if a Responsible Officer of the
Trustee has actual knowledge of such Default or Event of Default, the Trustee shall mail to Holders
of Securities a notice of the Default or Event of Default within 90 days after it occurs. Except in
the case of a Default or Event of Default in payment of principal of, or interest on, any Security,
the Trustee may withhold the notice if and so long as it in good faith determines that withholding
the notice is in the interests of the Holders of the Securities.



Section 7.06. Reports by Trustee to Holders of the Securities.




     On or before May 15 of each year, beginning with the May 15 following the date on which
Securities are first issued under this Indenture, and for so long as Securities remain outstanding,
the Trustee shall mail to the Holders of the Securities a brief report dated as of such reporting
date that complies with TIA § 313(a) (but if no event described in TIA § 313(a) has occurred within
the twelve months preceding the reporting date, no report need be transmitted). The Trustee also
shall comply with TIA § 313(b)(2). The Trustee shall also transmit by mail all reports as required
by TIA § 313(c). A copy of each report at the time of its mailing to the Holders of Securities
shall be mailed to the Company and filed with the SEC and each stock exchange on which the
Securities are listed in accordance with TIA § 313(d). The Company shall promptly notify the
Trustee when the Securities are listed on any stock exchange and any delisting thereof.



Section 7.07. Compensation and Indemnity.




     The Company shall pay to the Trustee from time to time such compensation for its acceptance of
this Indenture and services hereunder as the Company and Trustee have separately agreed. The
Trustee’s compensation shall not be limited by any law on compensation of a trustee of an express
trust. The Company shall reimburse the Trustee promptly upon request for all reasonable
disbursements, advances and expenses incurred or made by it in addition to the compensation for its
services, except to the extent



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any disbursement, advance or expense may be attributable to its negligence or willful
misconduct. Such expenses shall include the reasonable compensation, disbursements and expenses of
the Trustee’s agents and counsel.




     The Company shall indemnify the Trustee against any and all losses, liabilities or expenses
incurred by it arising out of or in connection with the acceptance or administration of its duties
under this Indenture, including the reasonable costs and expenses of enforcing this Indenture
against the Company (including this Section 7.07) and defending itself against any claim (whether
asserted by the Company or any Holder or any other person) or liability in connection with the
exercise or performance of any of its powers or duties hereunder, except to the extent any such
loss, liability or expense may be attributable to its negligence or willful misconduct. The Trustee
shall notify the Company promptly of any claim for which it may seek indemnity. Failure by the
Trustee to so notify the Company shall not relieve the Company of its obligations hereunder. The
Company shall defend the claim, and the Trustee shall cooperate in the defense. The Trustee may
have separate counsel, and the Company shall pay the reasonable fees and expenses of such counsel.
The Company need not pay for any settlement made without its consent, which consent shall not be
unreasonably withheld.



     The obligations of the Company under this Section 7.07 shall survive the satisfaction and
discharge of this Indenture, and the removal or resignation of the Trustee.



     To secure the Company’s payment obligations in this Section, the Trustee shall have a lien
prior to the Securities on all money or property held or collected by the Trustee, except for those
funds that are held in trust to pay principal of, premium, if any, and interest on particular
Securities. Such lien shall survive the satisfaction and discharge of this Indenture.



     Without limiting any rights available to the Trustee under applicable law, when the Trustee
incurs expenses or renders services after an Event of Default specified in Section 6.01(e) or (f)
hereof occurs, the expenses and the compensation for the services (including the fees and expenses
of its agents and counsel) are intended to constitute expenses of administration under any
Bankruptcy Law.



Section 7.08. Replacement of Trustee.




     A resignation or removal of the Trustee and appointment of a successor Trustee shall become
effective only upon the successor Trustee’s acceptance of appointment as provided in this Section.



     The Trustee may resign with respect to one or more or all series of Securities at any time and
be discharged from the trust hereby created by so notifying the Company in writing. The Holders of
a majority in principal amount of the then outstanding Securities of any series may remove the
Trustee with respect to such series by so notifying the Trustee and the Company in writing. The
Company may remove the Trustee if:



     (a) the Trustee ceases to be eligible in accordance with Section 7.10 hereof;



     (b) the Trustee is adjudged bankrupt or insolvent or an order for relief is entered with
respect to the Trustee under any Bankruptcy Law;



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



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     (d) the Trustee becomes incapable of acting.



     If the Trustee resigns or is removed or if a vacancy exists in the office of Trustee for any
reason, the Company shall promptly appoint a successor Trustee. Within one year after the successor
Trustee takes office, the Holders of a majority in principal amount of the then outstanding
Securities of a series may appoint a successor Trustee to replace the successor Trustee appointed
by the Company with respect to that series of Securities.



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



     If the Trustee, after written request by any Holder of a Security who has been a Holder of a
Security for at least six months, ceases to be eligible in accordance with Section 7.10, such
Holder of a Security may petition any court of competent jurisdiction for the removal of the
Trustee and the appointment of a successor Trustee.



     A successor Trustee shall deliver a written acceptance of its appointment to the retiring
Trustee and to the Company. Thereupon, the resignation or removal of the retiring Trustee shall
become effective, and the successor Trustee shall have all the rights, powers and duties of the
Trustee under this Indenture. The successor Trustee shall mail a notice of its succession to
Holders of the Securities. The retiring Trustee shall promptly
transfer all property held by it as Trustee to the successor Trustee; provided all sums owing to the Trustee hereunder have been
paid and subject to the lien provided for in Section 7.07 hereof. Notwithstanding replacement of
the Trustee pursuant to this Section 7.08, the Company’s obligations under Section 7.07 hereof
shall continue for the benefit of the retiring Trustee.



     If a successor Trustee is appointed with respect to the Securities of one or more (but not
all) series, the Company, the retiring Trustee and each successor Trustee with respect to the
Securities of any applicable series 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 Securities of any
series 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 trusts hereunder by more than one
Trustee, it being understood that nothing herein or in such supplemental indenture shall constitute
such Trustees as 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.



Section 7.09. Successor Trustee by Merger, Etc.




     If the Trustee consolidates, merges or converts into, or transfers all or substantially all of
its corporate trust business to, another corporation, the successor corporation without any further
act shall be the successor Trustee.



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Section 7.10. Eligibility; Disqualification.




     There shall at all times be a Trustee hereunder that is a corporation organized and doing
business under the laws of the United States of America or of any state thereof that is authorized
under such laws to exercise corporate trust powers, that is subject to supervision or examination
by federal or state authorities and that has a combined capital and surplus of at least $50,000,000
as set forth in its most recent published annual report of condition.



     This Indenture shall always have a Trustee who satisfies the requirements of TIA § 310(a)(1),
(2) and (5). The Trustee is subject to TIA § 310(b); provided, however, that there shall be
excluded from the operation of TIA §310(b)(1) any indenture or indentures under which other
securities or certificates of interest or participation in other securities of the Company are
outstanding if the requirements for such exclusion set forth in TIA §310(b)(1) are met.



Section 7.11. Preferential Collection of Claims Against Company.




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



ARTICLE 8

LEGAL DEFEASANCE AND COVENANT DEFEASANCE



Section 8.01. Option to Effect Legal Defeasance or Covenant Defeasance.




     (a) The Company may, at the option of its Board of Directors evidenced by a resolution set
forth in an Officer’s Certificate, at any time, elect to have either Section 8.02 or 8.03 hereof,
with such modifications thereto as may be specified in the Board Resolution or supplemental
indenture establishing a particular series of Securities, be applied to all outstanding Securities
of one or more series upon compliance with the conditions set forth below in this Article 8.



     (b) As an alternative to having Section 8.02 or 8.03 be applied to all outstanding Securities
of one or more series, the Company may terminate its obligations under the Securities of one or
more series and its obligations under this Indenture in respect of such series of Securities
(except those obligations referred to in the penultimate paragraph of this Section 8.01(b), and any
obligation of the Company to convert or exchange Securities of such series as expressly provided
for in the Board Resolution or indenture supplemental hereto establishing such Series) (1) if (i)
all Securities of such series theretofore authenticated and delivered (except lost, stolen or
destroyed Securities that have been replaced or paid and Securities for whose payment cash in
United States dollars has theretofore been deposited in trust or segregated and held in trust by
the Company and thereafter repaid to the Company or discharged from such trust as provided in
Section 8.06) have been delivered to the Trustee for cancellation; (ii) the Company has paid all
sums payable by it hereunder or under the applicable Board Resolution or indenture supplemental
hereto in respect of such series of Securities; and (iii) the Company shall have delivered to the
Trustee an Officer’s Certificate and an Opinion of Counsel, each stating that all conditions
precedent relating to the satisfaction and discharge of this Indenture with respect to such series
have been complied with; or (2) if (i) either (A) in the case of a series of Securities redeemable
prior to its Stated Maturity, such Securities are to be called for redemption within one year under
arrangements satisfactory to the Trustee for the giving of notice of redemption by the Trustee in
the



- 35 -









 




name, and at the expense, of the Company or (B) all Securities of such series have otherwise
become due and payable hereunder or will become due and payable within one year; (ii) the Company
shall have irrevocably deposited or caused to be deposited with the Trustee (or a trustee
satisfactory to the Trustee, under the terms of an irrevocable trust agreement in form and
substance satisfactory to the Trustee), as trust funds in trust solely for the benefit of the
Holders of Securities of such series for that purpose, cash in United States dollars in such amount
as is sufficient without consideration of reinvestment of interest or other earnings on such cash,
to pay the entire indebtedness on such Securities not theretofore delivered to the Trustee for
cancellation, for the principal of, premium, if any, and interest on the outstanding Securities of
such series to the date of such deposit (in the case of Securities which have become due and
payable) or to the stated maturity or redemption date, as the case may be; (iii) no Default or
Event of Default with respect to this Indenture or the Securities shall have occurred and be
continuing on the date of such deposit or shall occur as a result of such deposit and such deposit
will not result in a breach or violation of, or constitute a default under, any other instrument to
which the Company is bound; (iv) the Company shall have paid all other sums payable by it hereunder
in respect of Securities of such series; and (v) the Company shall have delivered to the Trustee an
Officer’s Certificate and an Opinion of Counsel, each stating that all conditions precedent
relating to the satisfaction and discharge of this Indenture have been complied with.




     Notwithstanding the foregoing paragraph, the Company’s obligations in Sections 2.07, 2.08,
2.09, 2.10, 4.02, 7.07, 8.06 and 8.07 shall survive with respect to the Securities of the
applicable series until they are no longer outstanding pursuant to the last paragraph of Section
2.10. After the Securities of the applicable series are no longer outstanding, the Company’s
obligations in Sections 7.07, 8.06 and 8.07 shall survive in respect of Securities of the
applicable series.



     After such delivery or irrevocable deposit, the Trustee upon request shall acknowledge in
writing the discharge of the Company’s obligations under the Securities of the applicable series
and the Company’s obligations under this Indenture with respect to the Securities of such series,
except for those surviving obligations specified above.



Section 8.02. Legal Defeasance and Discharge.




     Upon the Company’s exercise under Section 8.01 hereof of the option applicable to this Section
8.02 relating to one or more series of Securities, the Company shall, upon the satisfaction of the
conditions set forth in Section 8.04 hereof, be deemed to have been discharged from its obligations
with respect to all outstanding Securities of such series on the date the conditions set forth
below are satisfied (hereinafter, “Legal Defeasance”). For this purpose, Legal Defeasance means
that the Company shall be deemed to have paid and discharged the entire indebtedness represented by
the outstanding Securities of the applicable series, which shall thereafter be deemed to be
“Outstanding” only for the purposes of Section 8.05 hereof and the other Sections of this Indenture
referred to in (a) and (b) below, and to have satisfied all of its other obligations under the
Securities of the applicable series and under the provisions of this Indenture applicable to such
series (and the Trustee, on demand of and at the expense of the Company, shall execute proper
instruments acknowledging the same), except for the following provisions which shall survive until
otherwise terminated or discharged hereunder: (a) the rights of Holders of outstanding Securities
of the applicable series to receive solely from the trust fund described in Section 8.04 hereof,
and as more fully set forth in such Section, payments in respect of the principal of, premium, if
any, and interest, on such Securities when such payments are due, (b) the Company’s obligations
with respect to such Securities under Article 2 and Section 4.02 hereof, (c) the rights,



- 36 -









 




powers, trusts, duties and immunities of the Trustee hereunder, and the Company’s obligations
in connection therewith and (d) this Article 8. Subject to compliance with this Article 8, the
Company may exercise its option under this Section 8.02 notwithstanding the prior exercise of its
option under Section 8.03 hereof.




Section 8.03. Covenant Defeasance.




     Upon the Company’s exercise under Section 8.01 hereof of the option applicable to this Section
8.03 relating to one or more series of Securities, the Company shall, upon the satisfaction of the
conditions set forth in Section 8.04 hereof, be released from its obligations under the covenants
contained in Section 4.06 hereof with respect to the outstanding Securities of the applicable
series, and under any other covenants specified in the supplemental indenture or other terms of the
applicable series as covenants to which this Section 8.03 apply, on and after the date the
conditions set forth below are satisfied (hereinafter, “Covenant Defeasance”), and the Securities
of the applicable series shall thereafter be deemed not “Outstanding” for the purposes of any
direction, waiver, consent or declaration or act of Holders (and the consequences of any thereof)
in connection with such covenants, but shall continue to be deemed “Outstanding” for all other
purposes hereunder (it being understood that the Securities of the applicable series shall not be
deemed outstanding for accounting purposes). For this purpose, Covenant Defeasance means that, with
respect to the “Outstanding” Securities of the applicable series, the Company may omit to comply
with and shall have no liability in respect of any term, condition or limitation set forth in any
such covenant, whether directly or indirectly, by reason of any reference elsewhere herein to any
such covenant or by reason of any reference in any such covenant to any other provision herein or
in any other document and such omission to comply shall not constitute a Default or an Event of
Default under Section 6.01 hereof, but, except as specified above, the remainder of this Indenture
and such Securities shall be unaffected thereby.



Section 8.04. Conditions to Legal or Covenant Defeasance.




     The following shall be the conditions to the application of either Section 8.02 or 8.03 hereof
to the outstanding Securities of one or more series:



     In order to exercise either Legal Defeasance or Covenant Defeasance:



     (a) the Company must irrevocably deposit with the Trustee (or another trustee (satisfactory
to the Trustee) satisfying the requirements of Section 7.10, who shall agree under the terms of an
irrevocable trust agreement in form and substance satisfactory to the Trustee to comply with the
provisions of this Article 8 applicable to it) in trust, for the benefit of the Holders of the
Securities of the applicable series, (i) an amount of cash in United States dollars, (ii)
non-callable U.S. Government Obligations which, through scheduled payment of principal and interest
in respect thereof in accordance with their terms, will provide, not later than one Business Day
before the due date of any payment of principal of, premium, if any, or interest on the Securities
of such series, cash in an amount, or (iii) a combination thereof, sufficient, in the written
opinion of a nationally recognized firm of independent public accountants delivered to the Trustee,
to pay the principal of, interest and premium, if any, on the outstanding Securities of the
applicable series on the Stated Maturity or on the applicable redemption date, as the case may be,
and any mandatory sinking fund payments applicable to the Securities of such series on the day on
which such payments are due, and the Company must specify whether the Securities of the applicable
series are being defeased to maturity or to a particular redemption date;



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     (b) in the case of an election under Section 8.02 hereof, the Company shall have delivered to
the Trustee an Opinion of Counsel in the United States reasonably acceptable to the Trustee
confirming that (i) the Company has received from, or there has been published by, the Internal
Revenue Service a ruling or (ii) since the date of this Indenture, there has been a change in the
applicable federal income tax law, in either case to the effect that, and based thereon such
Opinion of Counsel shall confirm that, the Holders of the outstanding Securities of the applicable
series will not recognize income, gain or loss for federal income tax purposes as a result of such
Legal Defeasance and will be subject to federal income tax on the same amounts, in the same manner
and at the same times as would have been the case if such Legal Defeasance had not occurred;



     (c) in the case of an election under Section 8.03 hereof, the Company shall have delivered to
the Trustee an Opinion of Counsel in the United States reasonably acceptable to the Trustee
confirming that the Holders of the outstanding Securities of the applicable series will not
recognize income, gain or loss for federal income tax purposes as a result of such Covenant
Defeasance and will be subject to federal income tax on the same amounts, in the same manner and at
the same times as would have been the case if such Covenant Defeasance had not occurred;



     (d) no Default or Event of Default shall have occurred and be continuing on the date of such
deposit (other than a Default or Event of Default resulting from the borrowing of funds to be
applied to such deposit) or insofar as Sections 6.01(e) or (f) hereof are concerned, at any time in
the period ending on the 91st day after the date of deposit (or greater period of time in which any
such deposit of trust funds may remain subject to bankruptcy or insolvency laws insofar as those
apply to the deposit by the Company); and



     (e) the Company shall have delivered to the Trustee an Officer’s Certificate and an Opinion of
Counsel, each stating that all conditions precedent provided for or relating to the Legal
Defeasance or the Covenant Defeasance have been complied with.



Section 8.05. Deposited Money and U.S. Government Obligations to be Held in Trust; Other
Miscellaneous Provisions.




     Subject to Section 8.06 hereof, all money and non-callable U.S. Government Obligations
(including the proceeds thereof) deposited with the Trustee (or other qualifying trustee,
collectively for purposes of this Section 8.05, the “Trustee”) pursuant to Section 8.04 hereof in
respect of the outstanding Securities of the applicable series shall be held in trust and applied
by the Trustee, in accordance with the provisions of such Securities and this Indenture, to the
payment, either directly or through any Paying Agent (including the Company acting as Paying Agent)
as the Trustee may determine, to the Holders of such Securities of all sums due and to become due
thereon in respect of principal, premium, if any, and interest, but such money need not be
segregated from other funds except to the extent required by law.



     The Company shall pay and indemnify the Trustee against any tax, fee or other charge imposed
on or assessed against the cash or non-callable U.S. Government Obligations deposited pursuant to
Section 8.04 hereof or the principal and interest received in respect thereof other than any such
tax, fee or other charge which by law is for the account of the Holders of the outstanding
Securities of the applicable series.



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     Anything in this Article 8 to the contrary notwithstanding, the Trustee shall deliver or pay
to the Company from time to time upon the request of the Company any money or non-callable U.S.
Government Obligations held by it as provided in Section 8.04 hereof which, in the opinion of a
nationally recognized firm of independent public accountants expressed in a written certification
thereof delivered to the Trustee (which may be the opinion delivered under Section 8.04(a) hereof),
are in excess of the amount thereof that would then be required to be deposited to effect an
equivalent Legal Defeasance or Covenant Defeasance of the applicable series.



Section 8.06. Repayment to Company.




     Any money and U.S. Government Obligations deposited with the Trustee or any Paying Agent, or
then held by the Company, in trust for the payment of the principal of, premium or interest on any
Security and remaining unclaimed for two years after such principal, and premium, if any, or
interest has become due and payable shall be paid to the Company on its request or (if then held by
the Company) shall be discharged from such trust; and the Holder of such Security shall thereafter
look only to the Company for payment thereof, and all liability of the Trustee or such Paying Agent
with respect to such money and U.S. Government Obligations, and all liability of the Company as
trustee thereof, shall thereupon cease.



Section 8.07. Reinstatement.




     If the Trustee or Paying Agent is unable to apply any United States dollars or non-callable
U.S. Government Obligations deposited pursuant to Section 8.02 or 8.03 hereof, as the case may be,
by reason of any order or judgment of any court or governmental authority enjoining, restraining or
otherwise prohibiting such application, then the obligations of the Company under this Indenture
and the Securities shall be revived and reinstated as though no deposit had occurred pursuant to
Section 8.02 or 8.03 hereof until such time as the Trustee or Paying Agent is permitted to apply
all such money in accordance with Section 8.02 or 8.03 hereof, as the case may be; provided,
however, that if the Company makes any payment of principal of, premium or interest on any Security
following the reinstatement of its obligations, the Company shall be subrogated to the rights of
the Holders of such Securities to receive such payment from the money held by the Trustee or Paying
Agent.



ARTICLE 9

AMENDMENT, SUPPLEMENT AND WAIVER



Section 9.01. Without Consent of Holders of Securities.




     Notwithstanding Section 9.02 of this Indenture, the Company and the Trustee may amend or
supplement this Indenture or the Securities without the consent of any Holder of a Security:



     (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 5 hereof;



     (b) to add to the covenants of the Company such further covenants, restrictions or conditions
for the protection of the Holders of all or any series of Securities (and if such covenants are to
be for the benefit of less than all series of Securities stating that such covenants are expressly
being included for the benefit of such series) as the Board of Directors and the Trustee shall
consider to be for the



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protection of the Holders of such Securities, 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 provide for the issuance under this Indenture of Securities in coupon form (including
Securities registrable as to principal only) and to provide for exchangeability of such Securities
with the Securities issued hereunder in fully registered form and to make all appropriate changes
for such purpose;



     (d) 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 adversely affect in
any material respect the interests of the Holders of the Securities;



     (e) to evidence and provide for the acceptance of appointment hereunder by a successor Trustee
with respect to the Securities of one or more series and to add to or change any of the provisions
of this Indenture as shall be necessary to provide for or facilitate the administration of the
trusts hereunder by more than one trustee, pursuant to the requirements of Section 7.08;



     (f) to make any change that does not adversely affect in any material respect the interests of
any Holder;



     (g) to provide for the issuance of and establish the form and terms and conditions of the
Securities of any series, to establish the form of any certifications required to be furnished
pursuant to the terms of this Indenture or any series of Securities or to add to the rights of the
Holders of any series of Securities; or



     (h) to comply with the requirements of the SEC in order to effect or maintain the
qualification of the Indenture under the TIA.



     Upon the request of the Company accompanied by a copy of a Board 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 the certificate, authorizing the
execution of any such amended or supplemental indenture, and upon receipt by the Trustee of the
documents described in Sections 7.02(b), 9.06 and 12.05 hereof, the Trustee shall join with the
Company in the execution of any amended or supplemental indenture authorized or permitted by the
terms of this Indenture and to make any further appropriate agreements and stipulations that may be
therein contained, but the Trustee shall not be obligated to enter into such amended or
supplemental indenture that affects its own rights, duties or immunities under this Indenture or
otherwise.



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Section 9.02. With Consent of Holders of Securities.




     Except as provided below in this Section 9.02, the Company and the Trustee may amend or
supplement this Indenture, or the Securities of any series may be amended or supplemented, with the
consent of the Holders of a majority in principal amount of the Securities then outstanding of all
series affected by such supplemental indenture (voting as a single class) (including, without
limitation, consents obtained in connection with a purchase of, or tender offer or exchange offer
for, Securities), and, subject to Sections 6.04 and 6.07 hereof, any existing Default or Event of
Default (other than a Default or Event of Default in the payment of the principal of, premium or
interest on the Securities) or compliance with any provision of this Indenture or the Securities of
such series may be waived with the consent of the Holders of a majority in principal amount of the
Securities then outstanding of all series affected by such waiver (voting as a single class)
(including, without limitation, consents obtained in connection with a purchase of, or tender offer
or exchange offer for the Securities).



     Upon the request of the Company accompanied by a copy of a Board 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 the certificate, authorizing the
execution of any such amended or supplemental indenture, and upon the filing with the Trustee of
evidence satisfactory to the Trustee of the consent of the Holders of Securities of each such
series as aforesaid, and upon receipt by the Trustee of the documents described in Sections
7.02(b), 9.06 and 12.05 hereof, the Trustee shall join with the Company in the execution of such
amended or supplemental indenture unless such amended or 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 amended or
supplemental indenture.



     It shall not be necessary for the consent of the Holders of Securities under this Section 9.02
to approve the particular form of any proposed amendment or waiver, but it shall be sufficient if
such consent approves the substance thereof.



     After an amendment, supplement or waiver under this Section 9.02 becomes effective, the
Company shall mail to the Holders of Securities of each series affected thereby a notice briefly
describing the amendment, supplement or waiver. Any failure of the Company to mail such notice, or
any defect therein, shall not, however, in any way impair or affect the validity of any such
amended or supplemental indenture or waiver.



     However, without the consent of each Holder of Securities affected, an amendment or waiver may
not (with respect to any Securities held by a non-consenting Holder):



     (a) reduce the principal amount of the Securities whose Holders must consent to an amendment,
supplement or waiver;



     (b) reduce the principal of or change the fixed maturity of the principal of, premium, if any,
or mandatory sinking fund obligation, if any, with respect to any Securities of any series or alter
the provisions with respect to the redemption of the Securities;



     (c) reduce the rate of or change the time for payment of interest, including default interest,
on any Security of any series;



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     (d) waive a Default or Event of Default in the payment of principal of or interest or premium
on the Securities of any series (except a rescission of acceleration of the Securities by the
Holders of a majority in aggregate principal amount of the Securities of one or more affected
series and a waiver of the payment default that resulted from such acceleration);



     (e) make any Security of any series payable in currency other than that stated in the
Securities of such series;



     (f) make any change in the provisions of this Indenture relating to waivers of past Defaults
or the rights of Holders of Securities to receive payments of principal of or interest or premium
on the Securities;



     (g) waive a redemption payment with respect to any Security; or



     (h) make any change in Section 6.04 or 6.07 hereof or in the amendment and waiver provisions
of Section 9.01 or this Section 9.02.



Section 9.03. Compliance with Trust Indenture Act.




     Every amendment or supplement to this Indenture or the Securities shall be set forth in an
amended or supplemental indenture that complies with the TIA as then in effect.



Section 9.04. Revocation and Effect of Consents.




     Until an amendment, supplement or waiver becomes effective, a consent to it by a Holder of a
Security is a continuing consent by the Holder of a Security and every subsequent Holder of a
Security or portion of a Security that evidences the same debt as the consenting Holder’s
Securities, even if notation of the consent is not made on any Securities. However, any such Holder
of a Security or subsequent Holder of a Security may revoke the consent as to its Securities if the
Trustee receives written notice of revocation before the date the waiver, supplement or amendment
becomes effective. An amendment, supplement or waiver becomes effective in accordance with its
terms and thereafter binds every Holder.



Section 9.05. Notation on or Exchange of Securities.




     The Trustee may place an appropriate notation about an amendment, supplement or waiver on any
Securities thereafter authenticated. The Company in exchange for all Securities may issue and the
Trustee shall authenticate new Securities that reflect the amendment, supplement or waiver.



     Failure to make the appropriate notation or to issue new Securities shall not affect the
validity and effect of such amendment, supplement or waiver.



Section 9.06. Trustee to Sign Amendments, Etc.




     The Company may not sign an amendment or supplemental indenture until its Board of Directors
approves it. The Trustee shall sign any amendment or supplemental indenture authorized pursuant to
this Article 9 if the amendment or supplement does not adversely affect the rights, duties,
liabilities or immunities of the Trustee. If it does, the Trustee may, but need not, sign it. In
signing or refusing to sign



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such amendment or supplemental indenture, the Trustee shall be entitled to receive and shall
be fully protected in relying upon, an Officer’s Certificate and an Opinion of Counsel as
conclusive evidence that such amendment or supplemental indenture is authorized or permitted by
this Indenture, that it is not inconsistent herewith, and that it will be valid and binding upon
the Company in accordance with its terms.




Section 9.07. Amendments to Subordination Provisions.




     Any amendment to the provisions of Article 10 hereof will require the consent of each holder
of Senior Debt that would be adversely affected by such amendment.



ARTICLE 10

SUBORDINATION



Section 10.01. Agreement to Subordinate.




     (a) The Company agrees, and each Holder by accepting a Security agrees, that the indebtedness
evidenced by the Securities is subordinated in right of payment, to the extent and in the manner
provided in this Article, to the prior payment in full of all Senior Debt (whether outstanding on
the date hereof or hereafter created, incurred, assumed or guaranteed), and that the subordination
is for the benefit of the holders of Senior Debt.



     (b) If any holder of Senior Debt is required by any court or otherwise to return to the
Company, or any Custodian (as defined in Article 6 of this Indenture), trustee, or similar official
acting in relation to the Company, any amount paid by the Company to such holder of Senior Debt,
the provisions of this Article 10, to the extent theretofore discharged, shall be reinstated in
full force and effect; provided, however, that any amounts paid pursuant to this Indenture to
Holders of Securities shall not be subject to disgorgement pursuant to the provisions of this
paragraph (b).



Section 10.02. Certain Definitions.




     “Designated Senior Debt” means any Senior Debt permitted under this Indenture the principal
amount of which is at least the amount specified in the applicable supplemental indenture or Board
Resolution and that has been designated by the Company as “Designated Senior Debt.”



     “Representative” means the indenture trustee or other trustee, agent or representative for any
Senior Debt.



     A “distribution” may consist of cash, securities or other property, by set-off or otherwise.



Section 10.03. Liquidation; Dissolution; Bankruptcy.




     Upon any distribution to creditors of the Company in a liquidation or dissolution of the
Company or in a bankruptcy, reorganization, insolvency, receivership or similar proceeding relating
to the Company or its property, an assignment for the benefit of creditors or any marshalling of
the Company’s assets and liabilities:




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	 	(1)	 	holders of Senior Debt shall be entitled to receive payment
in full of all Obligations due in respect of such Senior Debt (including
interest after the commencement of any such proceeding at the rate specified in
the applicable Senior Debt) before the Holders of Securities shall be entitled
to receive any payment with respect to the Securities (except that Holders may
receive (i) securities that are subordinated to at least the same extent as the
Securities to (a) Senior Debt and (b) any securities issued in exchange for
Senior Debt and (ii) payments and other distributions made from any defeasance
trust created pursuant to Section 8.05 hereof); and
	 
	 	(2)	 	until all Obligations with respect to Senior Debt (as provided in
subsection (1) above) are paid in full, any distribution to which the Holders of
Securities would be entitled but for this Article shall be made to holders of
Senior Debt (except that Holders may receive (i) securities that are
subordinated to at least the same extent as the Securities to (a) Senior Debt
and (b) any securities issued in exchange for Senior Debt and (ii) payments and
other distributions made from any defeasance trust created pursuant to Section
8.05 hereof), as their interests may appear.




Section 10.04. Default on Designated Senior Debt.




     (a) The Company may not make any payment or distribution to the Trustee or any Holder in
respect of the Securities and may not acquire from the Trustee or any Holder any Securities for
cash or property (other than (1) securities that are subordinated to at least the same extent as
the Securities to (A) Senior Debt and (B) any securities issued in exchange for Senior Debt and (2)
payments and other distributions made from any defeasance trust created pursuant to Section 8.05
hereof) until all principal and other Obligations with respect to the Senior Debt have been paid in
full if:




	 	(1)	 	a default in the payment of the principal of, premium, if any, or
interest on Designated Senior Debt occurs and is continuing beyond any
applicable grace period in the agreement, indenture or other document governing
such Designated Senior Debt; or
	 
	 	(2)	 	a default, other than a default specified in Section 10.04(a)(1),
on Designated Senior Debt occurs and is continuing with respect to Designated
Senior Debt that then permits holders of the Designated Senior Debt as to which
such default relates to accelerate its maturity and the Trustee receives a
notice of the default (a “Payment Blockage Notice”) from a Person who may give
it pursuant to Section 10.12 hereof. If the Trustee receives any such Payment
Blockage Notice, no subsequent Payment Blockage Notice shall be effective for
purposes of this Section unless and until (I) at least 360 days shall have
elapsed since the effectiveness of the immediately prior Payment Blockage Notice
and (II) all scheduled payments of principal and premium, if any, and interest
on the Securities that have come due (other than by reason of acceleration) have
been paid in full in cash. No default described in this paragraph (2) that
existed or was continuing on the date of delivery of any Payment Blockage Notice
to the Trustee shall be, or be made, the basis for a subsequent Payment Blockage
Notice.




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     (b) The Company may and shall resume payments on and distributions in respect of the
Securities and may acquire them:




	 	(i)	 	in the case of a default described in Section
10.04(a)(1), upon the date on which the default is cured or waived,
	 
	 	(ii)	 	in the case of a default referred to in Section
10.04(a)(2) hereof, the earlier of the date on which such default is
cured or waived or 179 days after the date on which the applicable
Payment Blockage Notice is received, unless the maturity of any
Designated Senior Debt has been accelerated, and
	 
	 	(iii)	 	if this Article otherwise permits the payment,
distribution or acquisition at the time of such payment, distribution or
acquisition.




Section 10.05. Acceleration of Securities.




     If payment of the Securities is accelerated because of an Event of Default, the Company shall
promptly notify holders of Senior Debt of the acceleration.


Section 10.06. When Distribution Must be Paid Over.




     In the event that the Trustee or any Holder receives any payment of any Obligations with
respect to the Securities at a time when a Responsible Officer of the Trustee or such Holder, as
applicable, has actual knowledge that such payment is prohibited by Section 10.04 hereof, such
payment shall be held by the Trustee or such Holder, in trust for the benefit of, and shall be paid
forthwith over and delivered, upon written request, to, the holders of Senior Debt as their
interests may appear or their Representative under the indenture or other agreement (if any)
pursuant to which Senior Debt may have been issued, as their respective interests may appear, for
application to the payment of all Obligations with respect to Senior Debt remaining unpaid to the
extent necessary to pay such Obligations in full in accordance with their terms, after giving
effect to any concurrent payment or distribution to or for the holders of Senior Debt.



     With respect to the holders of Senior Debt, the Trustee undertakes to perform only such
obligations on the part of the Trustee as are specifically set forth in this Article 10, and no
implied covenants or obligations with respect to the holders of Senior Debt shall be read into this
Indenture against the Trustee. The Trustee shall not be deemed to owe any fiduciary duty to the
holders of Senior Debt, and shall not be liable to any such holders if the Trustee shall pay over
or distribute to or on behalf of Holders or the Company or any other Person money or assets to
which any holders of Senior Debt shall be entitled by virtue of this Article 10, except if such
payment is made as a result of the willful misconduct or gross negligence of the Trustee.


Section 10.07. Notice by Company.




     The Company shall promptly notify the Trustee and the Paying Agent of any facts known to the
Company that would cause a payment of any Obligations with respect to the Securities to violate
this Article, but failure to give such notice shall not affect the subordination of the Securities
to the Senior Debt as provided in this Article.



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Section 10.08. Subrogation.




     After all Senior Debt is paid in full and until the Securities are paid in full, Holders shall
be subrogated (equally and ratably with all other Indebtedness pari passu with the Securities) to
the rights of holders of Senior Debt to receive distributions applicable to Senior Debt to the
extent that distributions otherwise payable to the Holders have been applied to the payment of
Senior Debt. A distribution made under this Article to holders of Senior Debt that otherwise would
have been made to Holders is not, as between the Company and Holders, a payment by the Company on
the Senior Debt.


Section 10.09. Relative Rights.




     This Article defines the relative rights of Holders and holders of Senior Debt. Nothing in
this Indenture shall:



     (a) impair, as between the Company and Holders, the obligation of the Company, which is
absolute and unconditional, to pay principal of, premium, if any, and interest on the Securities in
accordance with their terms;



     (b) affect the relative rights of Holders and creditors of the Company other than rights of
Holders of the Securities in relation to holders of Senior Debt; or



     (c) prevent the Trustee or any Holder from exercising its available remedies upon a Default or
Event of Default, subject to the rights of holders and owners of Senior Debt to receive
distributions and payments otherwise payable to Holders.



     If the Company fails because of this Article to pay principal of, premium, if any, or interest
on a Security on the due date, the failure is still a Default or Event of Default.


Section 10.10. Subordination May Not be Impaired by Company.




     No right of any holder of Senior Debt to enforce the subordination of the indebtedness
evidenced by the Securities shall be impaired by any act or failure to act by the Company or any
Holder or by the failure of the Company or any Holder to comply with this Indenture.


Section 10.11. Distribution or Notice to Representative.




     Whenever a distribution is to be made or a notice given to holders of Senior Debt, the
distribution may be made and the notice given to their Representative.



     Upon any payment or distribution of assets of the Company referred to in this Article 10, the
Trustee and the Holders shall be entitled to rely upon any order or decree made by any court of
competent jurisdiction or upon any certificate of such Representative (or of any holder of Senior
Debt for which there is no Representative) or of the liquidating trustee or agent or other Person
making any distribution to the Trustee or to the Holders for the purpose of ascertaining the
Persons entitled to participate in such distribution, the holders of the Senior Debt 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 10. 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 Senior Debt to



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participate in any payment or distribution pursuant to this Article 10, the Trustee may
request such Person to furnish evidence to the reasonable satisfaction of the Trustee as to the
amount of Senior Debt held by such Person, the extent to which such Person is entitled to
participate in such payment or distribution and other facts pertinent to the rights of such Person
under this Article 10 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 10.12. Rights of Trustee and Paying Agent.




     Notwithstanding the provisions of this Article 10 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 or distribution by the Trustee, and the Trustee and any Paying Agent may
continue to make payments on the Securities, unless the Trustee shall have received at the
Corporate Trust Office of the Trustee at least five Business Days prior to the date of such payment
written notice of facts that would cause the payment of any Obligations with respect to the
Securities to violate this Article or a Responsible Officer of the Trustee otherwise has actual
knowledge of such facts. Only the Company or a Representative may give the notice, such notice from
the Company to be in the form of an Officer’s Certificate. Notwithstanding the provisions of this
Article 10 or any other provisions of this Indenture, the Trustee shall not be charged with
knowledge of the existence of any facts that would permit the resumption of payments on or
distributions in respect of the Securities or the acquisition of the Securities by the Company
unless the Trustee shall have received an Officer’s Certificate or a notice from a Representative
to the effect that such resumption is permitted. Nothing in this Article 10 shall impair the claims
of, or payments to, the Trustee under or pursuant to Section 7.07 hereof.



     The Trustee in its individual or any other capacity may hold Senior Debt with the same rights
it would have if it were not Trustee. Any Agent may do the same with like rights.


Section 10.13. Authorization to Effect Subordination.




     Each Holder of a Security by the Holder’s acceptance thereof authorizes and directs the
Trustee on the Holder’s behalf to take such action as may be necessary or appropriate to effectuate
the subordination as provided in this Article 10, and appoints the Trustee to act as the Holder’s
attorney-in-fact for any and all such purposes. If the Trustee does not file a proper proof of
claim or proof of debt in the form required in any proceeding referred to in Section 6.09 hereof at
least 30 days before the expiration of the time to file such claim, the agent under any Credit
Facility (or in the absence of such agent, any lender thereunder) is hereby authorized to file an
appropriate claim for and on behalf of the Holders of the Securities.



ARTICLE 11

MEETINGS OF HOLDERS



Section 11.01. Purposes for Which Meeting May be Called.




     A meeting of Holders of Securities of any series may be called at any time and from time to
time pursuant to this Article 11 to make, give or take any request, demand, authorization,
direction, notice, consent, waiver or other action provided by this Indenture to be made, given or
taken by Holders of Securities of such series.



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Section 11.02. Call, Notice and Place of Meetings.




     (a) The Trustee may at any time call a meeting of Holders of Securities of any series for any
purpose specified in Section 11.01, to be held at such time and at such place in the Borough of
Manhattan, The City of New York, or in such other place as the Trustee shall determine. Notice of
every meeting of Holders of Securities of any series, 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 given, in
the manner provided in Section 12.02, not less than 20 nor more than 180 days prior to the date
fixed for the meeting.



     (b) In case at any time the Company, by or pursuant to a Board Resolution, or the Holders of
at least 25% in principal amount of the outstanding Securities of any series shall have requested
the Trustee to call a meeting of the Holders of Securities of such series for any purpose specified
in Section 11.01 by written request setting forth in reasonable detail the action proposed to be
taken at the meeting, and the Trustee shall not have mailed notice of such meeting within 20 days
after receipt of such request or shall not thereafter proceed to cause the meeting to be held as
provided herein, then the Company or the Holders of Securities of such series in the amount above
specified, as the case may be, may determine the time and the place for such meeting and may call
such meeting for such purposes by giving notice thereof as provided in clause (a) of this Section.


Section 11.03. Persons Entitled to Vote at Meetings.




     To be entitled to vote at any meeting of Holders of Securities of any series, a Person shall
be (a) a Holder of one or more outstanding Securities of such series, or (b) a Person appointed by
an instrument in writing as proxy for a Holder or Holders of one or more outstanding Securities of
such series by such Holder or Holders. The only Persons who shall be entitled to be present or to
speak at any meeting of Holders of Securities of any series shall be the Persons entitled to vote
at such meeting and their counsel, any representatives of the Trustee and its counsel and any
representatives of the Company and its counsel.


Section 11.04. Quorum; Action.




     The Persons entitled to vote a majority in principal amount of the outstanding Securities of a
series shall constitute a quorum for a meeting of Holders of Securities of such series; provided,
however, that if any action is to be taken at such meeting with respect to a consent or waiver
which this Indenture (or any Board Resolution or indenture supplemental hereto establishing a
series of Securities hereunder) expressly provides may be given by the Holders of more or less than
a majority in principal amount of the outstanding Securities of a series, the Persons entitled to
vote such percentage in principal amount of the outstanding Securities of such series shall
constitute a quorum. In the absence of a quorum within 30 minutes after the time appointed for any
such meeting, the meeting shall, if convened at the request of Holders of Securities of such
series, be dissolved. In any other case the meeting may be adjourned for a period of not less than
10 days as determined by the 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 chairman of the meeting prior
to the adjournment of such adjourned meeting. Notice of the reconvening of any such adjourned
meeting shall be given as provided in Section 11.02(a), except that such notice need be given only
once not less than five days prior to the date on which the meeting is scheduled to be reconvened.
Notice of



- 48 -









 




the reconvening of an adjourned meeting shall state expressly the percentage, as provided
above, of the principal amount of the outstanding Securities of such series which shall constitute
a quorum.




     Except as otherwise provided in Section 6.02 or 9.02 or the last paragraph of Section 6.01 (or
in any Board Resolution or indenture supplemental hereto establishing a series of Securities
hereunder), any resolution presented to a meeting or adjourned meeting duly reconvened at which a
quorum is present as aforesaid may be adopted only by the affirmative vote of the Holders of a
majority in principal amount of the outstanding Securities of that series; provided, however, that,
any resolution with respect to any request, demand, authorization, direction, notice, consent,
waiver or other action which this Indenture or any supplemental indenture expressly provides may be
made, given or taken by the Holders of a specified percentage in principal amount of the
outstanding Securities of a series may be adopted at a meeting or an adjourned meeting duly
reconvened and at which a quorum is present as aforesaid by the affirmative vote of the Holders of
such specified percentage in principal amount of the outstanding Securities of such series.



     Any resolution passed or decision taken at any meeting of Holders of Securities of any series
duly held in accordance with this Section shall be binding on all the Holders of Securities of such
series, whether or not such Holders were present or represented at the meeting.


Section 11.05. Determination of Voting Rights; Conduct and Adjournment of Meetings.




     (a) Notwithstanding any other provisions of this Indenture, the Trustee may make such
reasonable regulations as it may deem advisable for any meeting of Holders of Securities of a
series in regard to proof of the holding of Securities of such series 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 deem appropriate. Except as otherwise
permitted or required by any such regulations, the holding of Securities shall be proved in the
manner specified in Section 1.05 and the appointment of any proxy shall be proved in the manner
specified in Section 1.05. Such regulations may provide that written instruments appointing
proxies, regular on their face, may be presumed valid and genuine without the proof specified in
Section 1.05 or other proof.



     (b) 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 Holders of Securities as
provided in Section 11.02(b), in which case the Company or the Holders of Securities of the series
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 vote of the Persons
entitled to vote at least a majority in principal amount of the outstanding Securities of such
series represented at the meeting. At any meeting each Holder of a Security of such series or proxy
shall be entitled to one vote for each $1,000 principal amount of the outstanding Securities of
such series held or represented by him; provided, however, that no vote shall be cast or counted at
any meeting in respect of any Security 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, except
as a Holder of a Security of such series or proxy.



     (c) Any meeting of Holders of Securities of any series duly called pursuant to Section 11.02
at which a quorum is present may be adjourned from time to time by Persons entitled to vote at
least a



- 49 -









 




majority in principal amount of the outstanding Securities of such series represented at the
meeting; and the meeting may be held as so adjourned without further notice.



Section 11.06. Counting Votes and Recording Action of Meetings.




     The vote upon any resolution submitted to any meeting of Holders of Securities of any series
shall be by written ballots on which shall be subscribed the signatures of the Holders of
Securities of such series or of their representatives by proxy and the principal amounts and serial
numbers of the outstanding Securities of such series 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 duplicate of all votes cast at the meeting. A record, at least in
duplicate, of the proceedings of each meeting of Holders of Securities of any series 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 given as provided in Section 11.02 and, if applicable, Section 11.04.
Each copy shall be signed and verified by the affidavits of the permanent chairman and secretary of
the meeting and one such copy shall be delivered to the Company, and another 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.


Section 11.07. Article Subject to Other Provisions.




     Each provision of this Article 11 (whether or not expressly so stated) is subject to any other
provision of this Indenture (or any Board Resolution or supplemental indenture establishing a
series of Securities hereunder) that provides that Securities of different series constitute a
single class.



ARTICLE 12

MISCELLANEOUS



Section 12.01. Trust Indenture Act Controls.




     This Indenture is subject to the provisions of the TIA that are required to be part of this
Indenture and shall, to the extent applicable, be governed by such provisions.


Section 12.02. Notices.




     Any notice or communication by the Company or the Trustee to the other is duly given if in
writing and delivered in person or mailed by first class mail (registered or certified, return
receipt requested), telecopier or overnight air courier guaranteeing next day delivery, to the
other’s address:



- 50 -









 





     If to the Company:


PRGX Global, Inc.

600 Galleria Parkway, Suite 100,

Atlanta, Georgia 30339

Telephone: (770) 779-3900

Facsimile No.: [(       )        —       ]

Attention: [                     ]




     If to the Trustee:



[                     
                ]

[                     
                ]

[                     
                ]

Facsimile: ( ) —

Attention: [                     ]




     The Company or the Trustee, by notice to the others may designate additional or different
addresses for subsequent notices or communications.



     All notices and communications (other than those sent to Holders) shall be deemed to have been
duly given: at the time delivered by hand, if personally delivered; five Business Days after being
deposited in the mail, postage prepaid, if mailed; when receipt acknowledged or confirmed, if
telecopied; and the next Business Day after timely delivery to the courier, if sent by overnight
air courier guaranteeing next day delivery.



     Any notice or communication to a Holder shall be mailed by first class mail or by overnight
courier guaranteeing next day delivery to its address shown on the register kept by the Registrar.
Any notice or communication shall also be so mailed to any Person described in TIA § 313(c), to the
extent required by the TIA. Failure to mail a notice or communication to a Holder or any defect in
it shall not affect its sufficiency with respect to other Holders. Where this Indenture provides
for notice in any manner, such notice may be waived in writing by the Person entitled to receive
such notice, either before or after the event, and such waiver shall be the equivalent of such
notice. Waivers of notice by Holders shall be filed with the Trustee, but such filing shall not be
a condition precedent to the validity of any action taken in reliance upon such waiver.



     In case by reason of the suspension of regular mail service or by reason of any other cause it
shall be impracticable to give such notice by mail, then such notification as shall be made with
the approval of the Trustee shall constitute a sufficient notification for every purpose hereunder.



     If a notice or communication is mailed in the manner provided above within the time
prescribed, it is duly given, whether or not the addressee receives it.



     If the Company mails a notice or communication to Holders, it shall mail a copy to the Trustee
and each Agent at the same time.



- 51 -









 




Section 12.03. Communication by Holders of Securities with Other Holders of Securities.




     Holders may communicate pursuant to TIA § 312(b) with other Holders with respect to their
rights under this Indenture or the Securities. The Company, the Trustee, the Registrar and anyone
else shall have the protection of TIA § 312(c).


Section 12.04. Certificate and Opinion as to Conditions Precedent.




     Upon any request or application by the Company to the Trustee to take any action under this
Indenture, the Company shall furnish to the Trustee:



     (a) an Officer’s Certificate in form reasonably satisfactory to the Trustee (which shall
include the statements set forth in Section 12.05 hereof) stating that, in the opinion of the
signer thereof, all conditions precedent and covenants, if any, provided for in this Indenture
relating to the proposed action have been satisfied; and



     (b) an Opinion of Counsel in form reasonably satisfactory to the Trustee (which shall include
the statements set forth in Section 12.05 hereof) stating that, in the opinion of such counsel, all
such conditions precedent and covenants have been satisfied.


Section 12.05. Statements Required in Certificate or Opinion.




     Each certificate or opinion with respect to compliance with a condition or covenant provided
for in this Indenture (other than a certificate provided pursuant to TIA § 314(a)(4) or Section
4.04) shall comply with the provisions of TIA § 314(e) and shall include:



     (a) a statement that the Person making such certificate or opinion has read such covenant or
condition;



     (b) 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;



     (c) a statement that, in the opinion of such Person, he or she 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 satisfied; and



     (d) a statement as to whether or not, in the opinion of such Person, such condition or
covenant has been satisfied.


Section 12.06. Rules by Trustee and Agents.




     The Trustee may make reasonable rules for action by or at a meeting of Holders. The Registrar
or Paying Agent may make reasonable rules and set reasonable requirements for its functions.


Section 12.07. No Personal Liability of Directors, Officers, Employees and Stockholders.




     No past, present or future director, officer, employee, incorporator or stockholder of the
Company, as such, shall have any liability for any obligations of the Company under the Securities,
this



- 52 -









 




Indenture or for any claim based on, in respect of, or by reason of, such obligations or their
creation. Each Holder of Securities by accepting a Security waives and releases all such liability.
The waiver and release are part of the consideration for issuance of the Securities.



Section 12.08. Governing Law.




     This indenture and the securities shall be governed by and construed in accordance with the
laws of the state of New York.


Section 12.09. No Adverse Interpretation of Other Agreements.




     This Indenture may not be used to interpret any other indenture, loan or debt agreement of the
Company or its Subsidiaries or of any other Person. Any such indenture, loan or debt agreement may
not be used to interpret this Indenture.


Section 12.10. Successors.




     All agreements of the Company in this Indenture and the Securities shall bind its successors.
All agreements of the Trustee in this Indenture shall bind its successors.


Section 12.11. Severability.




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


Section 12.12. Counterpart Originals.




     The parties may sign any number of copies of this Indenture. Each signed copy shall be an
original, but all of them together represent the same agreement. This Indenture will be effective
when each party shall have signed and delivered (including delivery by facsimile transmission), one
or more counterparts to the other, but it shall not be necessary for both parties to sign the same
counterpart.


Section 12.13. Table of Contents, Headings, Etc.




     The Table of Contents 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 of this Indenture and
shall in no way modify or restrict any of the terms or provisions hereof.


Section 12.14. Waiver of Jury Trial.




     Each of the Company and the Trustee hereby irrevocably waives, to the fullest extent permitted
by applicable law, any and all right to trial by jury in any legal proceeding arising out of or
relating to this indenture, the notes or the transaction contemplated hereby.


Section 12.15. Force Majeure.




     In no event shall the Trustee be responsible or liable for any failure or delay in the
performance of its obligations hereunder arising out of or caused by, directly or indirectly,
forces beyond its control,



- 53 -









 




including, without limitation, strikes, work stoppages, accidents, acts of war or terrorism,
civil or military disturbances, nuclear or natural catastrophes or acts of God, and interruptions,
loss or malfunctions of utilities, communications or computer (software and hardware) services; it
being understood that the Trustee shall use reasonable efforts which are consistent with accepted
practices in the banking industry to resume performance as soon as practicable under the
circumstances.




[Signature Page Follows]









- 54 -









 








SIGNATURES




     IN WITNESS WHEREOF, the parties have executed this Subordinated Indenture as of the date first
written above.



	 	 	 	 	 
	 	PRGX GLOBAL, INC.

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	[                    ],

as Trustee

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 



- 55 -









 






	 	 	 	 	 



EXHIBIT A-1




(Face of Note)

___% [Series __] Subordinated Note due [_____________]

[INSERT THE GLOBAL NOTE LEGEND, IF APPLICABLE,

PURSUANT TO THE PROVISIONS OF THE SUBORDINATED INDENTURE]



									
	 	 	 	 	 	 	 	 	 
	CUSIP No:
	 	 

	 	 	 	$
	 	 







     PRGX GLOBAL, INC. promises to pay to __________ or registered assigns, the [principal sum of
__________ Dollars]* [the principal sum as set forth in the Schedule of Exchanges of Interests in
the Global Note attached hereto]** on _________. Interest Payment Dates: _________. Record Dates:
_________.



	 	 	 	 	 
	 	PRGX GLOBAL, INC.

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 




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



	 	 	 	 	 
	 	[                     ],

as Trustee

 	 
	 	By:  	 	 
	 	 	 	 
	 	 	Authorized Signatory 	 
	 





 




			
	*	 	Insert in certificated Securities
	 
	**	 	Insert in Global Securities




A-1









 










(Back of Note)

___% [Series __] Subordinated Note due [____________]





     Capitalized terms used herein have the meanings assigned to them in the Indenture referred to
below unless otherwise indicated.



     1. Interest. PRGX Global, Inc., a Georgia corporation (the “Company”), promises to pay
interest on the principal amount of this Note at the rate of ___% per annum from [__________] until
maturity. The Company will pay interest [semiannually] [quarterly] on __________ and of each year
(each an “Interest Payment Date”). Interest on the Notes will accrue from the most recent date to
which interest has been paid or duly provided for or, if no interest has been paid or duly provided
for, from the date of original issuance thereof; provided that if there is no existing Default in
the payment of interest, and if this Note is authenticated between a record date referred to on the
face hereof and the next succeeding Interest Payment Date, interest shall accrue from such next
succeeding Interest Payment Date; provided, further, that the first Interest Payment Date shall be
_________. The Company shall pay interest (including post-petition interest in any proceeding under
any Bankruptcy Law) on overdue installments of interest (without regard to any applicable grace
periods) from time to time on demand at the same rate to the extent lawful. Interest will be
computed on the basis of a 360-day year of twelve 30-day months.



     2. Method of Payment. The Company will pay interest on the Notes (except defaulted interest)
to the Persons who are registered Holders of Notes at the close of business on the __________ or
__________ next preceding the Interest Payment Date, even if such Notes are canceled after such
record date and on or before such Interest Payment Date, except as provided in Section 2.14 of the
Indenture with respect to defaulted interest. The Notes will be payable as to principal, premium
and interest at the office or agency of the Company maintained for such purpose within or without
the State of New York; provided that payment by wire transfer of immediately available funds will
be required with respect to principal of and interest and premium on, all Global Notes and all
other Notes the Holders of which shall have provided wire transfer instructions to the Company or
the Paying Agent at least 15 days prior to the applicable payment date. Such payment shall be in
such coin or currency of the United States of America as at the time of payment is legal tender for
payment of public and private debts.



     3. Paying Agent and Registrar. Initially, [_____________], the Trustee under the Indenture,
will act as Paying Agent and Registrar. The Company may change any Paying Agent or Registrar
without notice to any Holder. The Company may act in any such capacity.



     4. Subordinated Indenture. The Company issued the Notes under a Subordinated Indenture dated
as of __________ (the “Indenture”) between the Company and the Trustee. The terms of the Notes
include those stated in the Indenture and in [a Supplemental Indenture] [resolutions of [the
__________ Committee of] the Company’s Board of Directors] dated, and those terms made part of the
Indenture by reference to the Trust Indenture Act of 1939, as amended (15 U.S.C. §§ 77aaa-77bbbb)
(the “TIA”). The Notes are subject to all such terms, and Holders are referred to the Indenture and
the TIA for a statement of such terms. The Notes are general obligations of the Company. “Notes”
means this Note and all other Notes of the series of which this Note is a part. The Notes are
“Securities” within the meaning of the



A-2









 




Indenture, and references in the Indenture to “Securities” (including terms such as “Global
Securities”) include the Notes (and any “Global Notes” as used herein).




     5. Optional Redemption.



     [(a)] The Notes will not be redeemable at the Company’s option prior to _________. The Notes
may be redeemed, in whole or in part, at the option of the Company on or after __________, at the
redemption prices specified below (expressed as percentages of the principal amount thereof), in
each case, together with accrued and unpaid interest, hereon to the date of redemption, upon not
less than 15 nor more than 60 days’ notice, if redeemed during the twelve-month period beginning on
__________ of the years indicated below:



	 	 	 	 	 
	Year	 	 	Redemption Price	 
	 
	 





     [(b) Notwithstanding the foregoing, prior to __________, the Company may, on any one or more
occasions, use the net proceeds of one or more offerings of its capital stock to redeem up to ___%
of the aggregate principal amount of all Notes that had been issued under the Indenture up to the
time of redemption at a redemption price of ___% of the principal amount of the Notes to be
redeemed, plus accrued and unpaid interest, to the date of redemption; provided that, after any
such redemption, the aggregate principal amount of the Notes outstanding (excluding Notes held by
the Company and its Subsidiaries) must equal at least ___% of the principal amount of the Notes
that had been issued under the Indenture up to the time of redemption; and provided, further, that
any such redemption shall occur within 90 days of the date of closing of such offering of capital
stock of the Company.]



     [Describe any other optional redemption provisions.]



     6. Mandatory Redemption. [The Company shall not be required to make mandatory redemption or
sinking fund payments with respect to the Notes.] or [Describe mandatory redemption or sinking fund
provisions.]



     7. Notice of Redemption. Notice of Redemption will be mailed at least 15 days but not more
than 60 days before the redemption date to each Holder whose Notes are to be redeemed at its
registered address. Notes in denominations larger than $1,000 may be redeemed in part but only in
whole multiples of $1,000, unless all of the Notes held by a Holder are to be redeemed. On and
after the redemption date interest ceases to accrue on Notes or portions thereof called for
redemption.



A-3









 





     8. Denominations, Transfer, Exchange. The Notes are in registered form without coupons in
denominations of _________. The transfer of Notes may be registered and Notes may be exchanged as
provided in the Indenture. The Registrar and the Trustee may require a Holder, among other things,
to furnish appropriate endorsements and transfer documents and the Company may require a Holder to
pay any taxes and fees required by law or permitted by the Indenture. The Company need not transfer
or exchange any Note selected for redemption, except for the unredeemed portion of any Note being
redeemed in part. Also, it need not transfer or exchange any Note for a period of 15 days before
the mailing of a notice of redemption.



     9. Persons Deemed Owners. The registered Holder of a Note may be treated as its owner for all
purposes, except as provided in the Indenture.



     10. Amendment, Supplement and Waiver. Subject to certain exceptions, the Indenture or the
Notes may be amended or supplemented with the consent of the Holders of a majority in principal
amount of the then outstanding Notes and other series of Securities affected (treating the Notes
and such other series as a single class), and any existing default or compliance with any provision
of the Indenture or the Notes may be waived with the consent of the Holders of a majority in
principal amount of the then outstanding Notes and other series of Securities affected (treating
the Notes and such other series as a single class). Without the consent of any Holder of a Note,
the Indenture or the Notes may be amended or supplemented to cure any ambiguity, defect or
inconsistency, to provide for uncertificated Notes in addition to or in place of certificated
Notes, to provide for the assumption of the Company’s obligations to Holders of the Notes in case
of a merger, consolidation or certain other events, to make any change that would provide any
additional rights or benefits to the Holders of the Notes or that does not adversely affect in any
material respect the interests under the Indenture of any such Holder, or to comply with the
requirements of the SEC in order to effect or maintain the qualification of the Indenture under the
TIA.



     11. Defaults and Remedies. If any Event of Default occurs and is continuing, the Trustee or
the Holders of at least 25% in principal amount of the then outstanding Notes and other series of
Securities affected (treating the Notes and such other series as a single class) may declare all
the Notes to be due and payable immediately. Notwithstanding the foregoing, in the case of an Event
of Default arising from certain events of bankruptcy or insolvency with respect to the Company, all
outstanding Notes will become due and payable without further action or notice. Holders of the
Notes may not enforce the Indenture or the Notes except as provided in the Indenture. Subject to
certain limitations, Holders of a majority in principal amount of the then outstanding Notes and
other series of Securities affected (treating the Notes and such other series as a single class)
may direct the Trustee in its exercise of any trust or power. The Trustee may withhold from Holders
of the Notes notice of any continuing Default or Event of Default (except a Default or Event of
Default relating to the payment of principal or interest) if it determines that withholding notice
is in their interest. The Holders of a majority in aggregate principal amount of the Notes and
other series of Securities affected (treating the Notes and such other series as a single class)
then outstanding by notice to the Trustee may on behalf of the Holders of all of the Notes waive
any existing Default or Event of Default and its consequences under the Indenture except a
continuing Default or Event of Default in the payment of principal, interest or premium on the
Notes.



A-4









 





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



     13. No Recourse against Others. No director, officer, employee, incorporator or stockholder of
the Company shall have any liability for any obligations of the Company under the Notes or the
Indenture or for any claim based on, in respect of, or by reason of, such obligations or their
creation. Each Holder of Notes by accepting a Note waives and releases all such liability. The
waiver and release are part of the consideration for the issuance of the Notes.



     14. Authentication. This Note shall not be valid until authenticated by the manual signature
of an authorized officer of the Trustee or an authenticating agent.



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



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



     17. Subordination. The Company and the Holders, by accepting the Notes, agree that payment of
the principal of, premium, if any, and interest on the Notes is subordinated, to the extent and in
the manner provided in the Indenture, to the right of payment in full of all present and future
Senior Debt, and that the subordination provisions in the Indenture are for the benefit of the
holders of Senior Debt. Each Holder of a Note, by the Holder’s acceptance thereof authorizes and
directs the Trustee on the Holder’s behalf to take such action as may be necessary or appropriate
to effectuate the subordination as provided in Article 10 of the Indenture, and appoints the
Trustee to act as the Holder’s attorney-in-fact for any and all such purposes.



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


PRGX Global, Inc.

600 Galleria Parkway, Suite 100,

Atlanta, Georgia 30339

Telephone: (770) 779-3900

Facsimile No.: [(       )        —       ]

Attention: [                     ]







A-5









 








ASSIGNMENT FORM

(To assign this Note, fill in the form below)



(I) or (we) assign and transfer this Note to




 

(Insert assignee’s soc. sec. or tax I.D. no.)




 

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



and irrevocably appoint _________________ to transfer this Note on the books of the Company. The
agent may substitute another to act for him.



Dated: _________________




	 	 	 	 	 
	 	 	 
	 	
Signature




Signature Guaranteed

 	 


NOTICE: The signature to the foregoing Assignment must correspond to the Name as written upon the
face of this Note in every particular, without alteration or any change whatsoever.








A-6









 








SCHEDULE OF EXCHANGES OF INTERESTS IN THE GLOBAL NOTE





     The following exchanges of a part of this Global Note for an interest in another Global Note
or for a certificated Note, or exchanges of a part of another Global Note or certificated Note for
an interest in this Global Note, have been made:



	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	Amount of	 	 	Amount of	 	 	Principal Amount	 	 	 	 
	 	 	 	 	decrease in	 	 	increase in	 	 	of this Global	 	 	Signature of	 
	 	 	 	 	Principal Amount	 	 	Principal Amount	 	 	Note following	 	 	authorized officer	 
	 	 	 	 	of this Global	 	 	of this Global	 	 	such decrease (or	 	 	of Trustee or Note	 
	Date of Exchange	 	 	Note	 	 	Note	 	 	increase)	 	 	Custodian	 






A-7