exv4w2






Exhibit 4.2






 





NABORS INDUSTRIES, INC.




as Issuer




and


NABORS INDUSTRIES LTD.,




as Guarantor




and




WELLS FARGO BANK, NATIONAL ASSOCIATION




as Trustee




INDENTURE




Dated as of January 12, 2009




9.25% SENIOR NOTES DUE 2019



 















 





TABLE OF CONTENTS




	 	 	 	 	 
	 	 	 	Page	 
	ARTICLE I

	DEFINITIONS AND INCORPORATION BY REFERENCE

	 
	 	 	 	 
	SECTION 1.01. Definitions

	 	 	1	 
	SECTION 1.02. Other Definitions

	 	 	8	 
	SECTION 1.03. Incorporation by Reference of Trust Indenture Act

	 	 	9	 
	SECTION 1.04. Rules of Construction

	 	 	9	 
	 
	 	 	 	 
	ARTICLE II

	THE SECURITIES

	 
	 	 	 	 
	SECTION 2.01. Form and Dating

	 	 	10	 
	SECTION 2.02. Execution and Authentication

	 	 	11	 
	SECTION 2.03. Registrar and Paying Agent

	 	 	12	 
	SECTION 2.04. Paying Agent to Hold Money in Trust

	 	 	12	 
	SECTION 2.05. Holder Lists

	 	 	13	 
	SECTION 2.06. Transfer and Exchange

	 	 	13	 
	SECTION 2.07. Replacement Securities

	 	 	26	 
	SECTION 2.08. Outstanding Securities

	 	 	27	 
	SECTION 2.09. [Reserved.]

	 	 	27	 
	SECTION 2.10. Temporary Securities

	 	 	28	 
	SECTION 2.11. Cancellation

	 	 	28	 
	SECTION 2.12. Defaulted Interest

	 	 	28	 
	SECTION 2.13. Persons Deemed Owners

	 	 	28	 
	SECTION 2.14. CUSIP Numbers

	 	 	28	 
	 
	 	 	 	 
	ARTICLE III

	COVENANTS

	 
	 	 	 	 
	SECTION 3.01. Payment of Securities

	 	 	28	 
	SECTION 3.02. Maintenance of Office or Agency

	 	 	29	 
	SECTION 3.03. SEC Reports; Financial Statements

	 	 	29	 
	SECTION 3.04. Compliance Certificate

	 	 	30	 
	SECTION 3.05. Corporate Existence

	 	 	30	 
	SECTION 3.06. Waiver of Stay, Extension or Usury Laws

	 	 	30	 
	SECTION 3.07. Limitation on Liens

	 	 	31	 
	SECTION 3.08. Payment of Additional Amounts

	 	 	33	 
	SECTION 3.09. Limitations on Sale and Lease-Back Transactions

	 	 	35	 
	SECTION 3.10. Change of Control Offer

	 	 	35	 
	 
	 	 	 	 
	ARTICLE IV

	CONSOLIDATION, MERGER AND SALE

	 
	 	 	 	 
	SECTION 4.01. Limitation on Mergers and Consolidations

	 	 	38	 
	SECTION 4.02. Successors Substituted

	 	 	39	 






i









 






	 	 	 	 	 
	 	 	 	Page	 
	 
	 	 	 	 
	ARTICLE V

	DEFAULTS AND REMEDIES

	 
	 	 	 	 
	SECTION 5.01. Events of Default

	 	 	39	 
	SECTION 5.02. Acceleration

	 	 	40	 
	SECTION 5.03. Other Remedies

	 	 	41	 
	SECTION 5.04. Waiver of Existing Defaults

	 	 	42	 
	SECTION 5.05. Control by Majority

	 	 	42	 
	SECTION 5.06. Limitations on Suits

	 	 	42	 
	SECTION 5.07. Rights of Holders to Receive Payment

	 	 	43	 
	SECTION 5.08. Collection Suit by Trustee

	 	 	43	 
	SECTION 5.09. Trustee May File Proofs of Claim

	 	 	43	 
	SECTION 5.10. Priorities

	 	 	44	 
	SECTION 5.11. Undertaking for Costs

	 	 	44	 
	 
	 	 	 	 
	ARTICLE VI

	TRUSTEE

	 
	 	 	 	 
	SECTION 6.01. Duties of Trustee

	 	 	44	 
	SECTION 6.02. Rights of Trustee

	 	 	45	 
	SECTION 6.03. Individual Rights of Trustee

	 	 	46	 
	SECTION 6.04. Trustee’s Disclaimer

	 	 	46	 
	SECTION 6.05. Notice of Defaults

	 	 	47	 
	SECTION 6.06. Reports by Trustee to Holders

	 	 	47	 
	SECTION 6.07. Compensation and Indemnity

	 	 	47	 
	SECTION 6.08. Replacement of Trustee

	 	 	48	 
	SECTION 6.09. Successor Trustee by Merger, etc

	 	 	49	 
	SECTION 6.10. Eligibility; Disqualification

	 	 	49	 
	SECTION 6.11. Preferential Collection of Claims Against Company

	 	 	49	 
	 
	 	 	 	 
	ARTICLE VII

	DISCHARGE OF INDENTURE

	 
	 	 	 	 
	SECTION 7.01. Termination of Company’s and Guarantor’s Obligations

	 	 	50	 
	SECTION 7.02. Application of Trust Money

	 	 	53	 
	SECTION 7.03. Repayment to Company

	 	 	53	 
	SECTION 7.04. Reinstatement

	 	 	54	 
	 
	 	 	 	 
	ARTICLE VIII

	AMENDMENTS

	 
	 	 	 	 
	SECTION 8.01. Without Consent of Holders

	 	 	54	 
	SECTION 8.02. With Consent of Holders

	 	 	55	 
	SECTION 8.03. Compliance with Trust Indenture Act

	 	 	57	 
	SECTION 8.04. Revocation and Effect of Consents

	 	 	57	 
	SECTION 8.05. Notation on or Exchange of Securities

	 	 	58	 
	SECTION 8.06. Trustee to Sign Amendments, etc

	 	 	58	 






ii









 






	 	 	 	 	 
	 	 	 	Page	 
	ARTICLE IX

	GUARANTEES OF SECURITIES

	 
	 	 	 	 
	SECTION 9.01. Unconditional Guarantees

	 	 	58	 
	SECTION 9.02. Execution and Delivery of Notation of Guarantees

	 	 	60	 
	 
	 	 	 	 
	ARTICLE X

	REDEMPTION

	 
	 	 	 	 
	SECTION 10.01. Notices to Trustee

	 	 	61	 
	SECTION 10.02. Selection of Securities to be Redeemed

	 	 	61	 
	SECTION 10.03. Notices to Holders.

	 	 	61	 
	SECTION 10.04. Effect of Notices of Redemption

	 	 	62	 
	SECTION 10.05. Deposit of Redemption Price

	 	 	62	 
	SECTION 10.06. Securities Redeemed in Part

	 	 	63	 
	SECTION 10.07. Optional Redemption

	 	 	63	 
	 
	 	 	 	 
	ARTICLE XI

	MISCELLANEOUS

	 
	 	 	 	 
	SECTION 11.01. Trust Indenture Act Controls

	 	 	63	 
	SECTION 11.02. Notices

	 	 	63	 
	SECTION 11.03. Communication by Holders with Other Holders

	 	 	64	 
	SECTION 11.04. Certificate and Opinion as to Conditions Precedent

	 	 	64	 
	SECTION 11.05. Statements Required in Certificate or Opinion

	 	 	65	 
	SECTION 11.06. Rules by Trustee and Agents

	 	 	65	 
	SECTION 11.07. Legal Holidays

	 	 	65	 
	SECTION 11.08. No Recourse Against Others

	 	 	65	 
	SECTION 11.09. Governing Law

	 	 	65	 
	SECTION 11.10. Consent to Jurisdiction and Service of Process

	 	 	65	 
	SECTION 11.11. Waiver of Immunity

	 	 	66	 
	SECTION 11.12. Judgment Currency

	 	 	66	 
	SECTION 11.13. No Adverse Interpretation of Other Agreements

	 	 	66	 
	SECTION 11.14. Successors

	 	 	67	 
	SECTION 11.15. Severability

	 	 	67	 
	SECTION 11.16. Counterpart Originals

	 	 	67	 
	SECTION 11.17. Table of Contents, Headings, etc

	 	 	67	 
	 
	 	 	 	 
	EXHIBITS
	 	 	 	 
	 
	 	 	 	 
	EXHIBIT A Form of Security

	 	A-1

	EXHIBIT B Form of Certificate of Transfer

	 	B-1

	EXHIBIT C Form of Certificate of Exchange

	 	C-1







iii









 





     THIS INDENTURE dated as of January 12, 2009, is among Nabors Industries, Inc., a Delaware
corporation (the “Company”), Nabors Industries Ltd., a Bermuda exempted company (the “Guarantor”),
and Wells Fargo Bank, National Association, a national banking association, as trustee (the
“Trustee”).



     Each party agrees as follows for the benefit of the other parties and for the equal and
ratable benefit of the Holders of the Company’s 9.25% Senior Notes due 2019 issued on the date
hereof (the “Initial Securities”), the Holders of any Additional Securities (as defined herein)
issued hereafter and, if and when issued in exchange for the Initial Securities or any Additional
Securities as provided in a Registration Rights Agreement (as hereinafter defined), the Company’s
Exchange Securities (as hereinafter defined):



ARTICLE I

DEFINITIONS AND INCORPORATION BY REFERENCE




     SECTION 1.01. Definitions.



     “Additional Interest” means, with respect to any Securities, the additional or special
interest thereon, if any, required by the Registration Rights Agreement applicable to such
Securities.



     “Additional Securities” means any Securities (other than the Initial Securities or the
Exchange Securities) issued under this Indenture in accordance with Section 2.02, as part of the
same series as the Initial Securities to the extent outstanding and any Exchange Securities then
outstanding.



     “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” of a Person means the power to direct the management and
policies of such Person, directly or indirectly, whether through the ownership of voting
securities, by contract or otherwise, and the terms “controlling” and “controlled” shall have
meanings correlative to the foregoing. The Trustee may request and may conclusively rely upon an
Officers’ Certificate to determine whether any Person is an Affiliate of any specified Person.



     “Agent” means any Registrar or Paying Agent.



     “Applicable Procedures” means, with respect to any transfer or exchange of or for beneficial
interests in any Global Security, the rules and procedures of the Depositary, Euroclear or
Clearstream that apply to such transfer or exchange.



     “Attributable Debt” means, with respect to any Sale and Lease-Back Transaction as of any
particular time, the present value discounted at the rate of interest implicit in the terms of the
lease of the obligations of the lessee under such lease for net rental payments during the
remaining term of the lease.



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



1









 





     “Board of Directors” of any Person means the board of directors, board of managers (or other
comparable governing body) of such Person or any committee thereof duly authorized, with respect to
any particular matter, to act by or on behalf of the board of directors of such Person.



     “Business Day” means any day that is not a Legal Holiday.



     “Capital Stock” means (i) in the case of a corporation or a company, corporate stock or
shares; (ii) in the case of an association or business entity, any and all shares, interests,
participations, rights or other equivalents (however designated) of corporate stock; (iii.) in the
case of a partnership or limited liability company, partnership or membership interests (whether
general or limited); and (iv) any other interest or participation that confers on a Person the
right to receive a share of the profits and losses of, or distributions of assets of, the issuing
Person.



     “Clearstream” means Clearstream Banking, société anonyme or any successor securities clearing
agency.



     “Code” means the Internal Revenue Code of 1986, as amended, and any successor statute.



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



     “Consolidated Net Tangible Assets” means the total assets of the Guarantor and the
Subsidiaries as of the most recent fiscal quarter end for which a consolidated balance sheet of the
Guarantor and the Subsidiaries is available, minus all current liabilities (excluding the current
portion of any long-term debt) of the Guarantor and the Subsidiaries reflected on such balance
sheet and minus total goodwill and other intangible assets of the Guarantor and the Subsidiaries
reflected on such balance sheet, all calculated on a consolidated basis in accordance with GAAP.



     “Continuing Director” means, as of any date of determination, any member of the Board of
Directors of the Guarantor who:



     (1) was a member of such Board of Directors (a) on the Issue Date or (b) for at least two
consecutive years; or



     (2) was nominated for election, elected or appointed to such Board of Directors with the
approval of a majority of the Continuing Directors who were members of such Board of Directors at
the time of such nomination, election or appointment (either by a specific vote or by approval of
the Guarantor’s proxy statement in which such member was named as a nominee for election as a
director, without objection to such nomination).



     “Corporate Trust Office of the Trustee” means the office of the Trustee at which this
Indenture shall be principally administered, which office shall initially be located at the address
of the Trustee specified in Section 11.02 and may be located at such other address as the Trustee
may give notice to the Company and the Holders or such other address as a successor Trustee may
designate from time to time by notice to the Company and the Holders.



2









 





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



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



     “Definitive Security” means a certificated Security registered in the name of the Holder
thereof and issued in accordance with Section 2.06, substantially in the form of Exhibit A hereto,
except that such Security shall not bear the Global Security Legend and shall not have the
“Schedule of Exchanges of Securities” attached thereto.



     “Depositary” means The Depository Trust Company and its successors.



     “Euroclear” means Euroclear Bank N.V./S.A. or any successor securities clearance agency.



     “Exchange Act” means the Securities Exchange Act of 1934, as amended, and any successor
statute.



     “Exchange Offer Registration Statement” means the registration statement of the Company
relating to any offer to exchange Exchange Securities for either Initial Securities or Additional
Securities pursuant to a Registration Rights Agreement.



     “Exchange Securities” means Securities issued in an exchange offer for Initial Securities or
Additional Securities in accordance with a Registration Rights Agreement.



     “Exchanging Dealer” means a broker-dealer that exchanges Securities in a Registered Exchange
Offer that it has acquired for its own account as a result of market making activities or other
trading activities.



     “Fitch” means Fitch Inc., a subsidiary of Fimalac, S.A., and its successors.



     “Funded Debt” means indebtedness for money borrowed which by its terms matures at, or is
extendible or renewable at the option of the obligor to, a date more than twelve months after the
date of creation of such indebtedness.



     “GAAP” means generally accepted accounting principles in the United States, as in effect from
time to time.



     “Global Securities” means, individually and collectively, each of the Restricted Global
Securities and the Unrestricted Global Securities.



     “Global Security Legend” means the legend set forth in Section 2.06(g)(2) which is required to
be placed on all Global Securities issued under this Indenture.



     “Guarantor” means the Person named as a “Guarantor” in the first paragraph of this instrument
until a successor Person shall have assumed the obligations of such Person pursuant



3









 







to the applicable provisions of this Indenture, and thereafter “Guarantor” shall mean such
successor Person(s).



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



     “Indebtedness” means any indebtedness for money borrowed or representing the deferred purchase
price of property or assets purchased.



     “Indenture” means this Indenture as amended or supplemented from time to time.



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



     “Initial Purchasers” means, with respect to the Initial Securities, the initial purchasers
named in the Purchase Agreement, as initial purchasers of the Initial Securities in the Offering.



     “Interest Payment Date” has the meaning assigned to such term in the Securities.



     “Investment Grade” means a rating of Baa3 or better by Moody’s (or its equivalent under any
successor rating category of Moody’s); a rating of BBB- or better by S&P (or its equivalent under
any successor rating category of S&P); a rating of BBB- or better by Fitch (or its equivalent under
any successor rating category of Fitch); and the equivalent investment grade rating from any
replacement Rating Agency or Agencies appointed by the Company or the Guarantor.



     “Issue Date” means the first date on which the Securities are issued under this Indenture.



     “Legal Holiday” means a Saturday, a Sunday or a day on which banking institutions in any of
New York, New York, Houston, Texas or a place of payment are authorized or obligated by law,
regulation or executive order to remain closed.



     “Letter of Transmittal” means the letter of transmittal prepared by the Company and sent to
all Holders of Initial or Additional Securities, as the case may be, for use by such Holders in
connection with a Registered Exchange Offer.



     “Maturity,” when used with respect to any Security, means the date on which the principal of
such Security or an installment of principal becomes due and payable as therein or herein provided,
whether at the Stated Maturity, by declaration of acceleration, call for redemption or otherwise.



     “Moody’s” means Moody’s Investors Service, Inc., a subsidiary of Moody’s Corporation, and its
successors.



     “Non-U.S. Person” means a Person who is not a U.S. Person.



     “Offering” means the offering of the Initial Securities pursuant to the Offering Memorandum.



4









 





     “Offering Memorandum” means the final Offering Memorandum of the Company, dated January 7,
2009, relating to the Offering.



     “Officer” means the Chairman of the Board, the Chief Executive Officer, the President, any
Vice Chairman of the Board, any Vice President, the Chief Financial Officer, the Chief Accounting
Officer, the Treasurer, any Assistant Treasurer, the Controller, the Secretary or any Assistant
Secretary of a Person.



     “Officers’ Certificate” means a certificate signed by two Officers of a Person, one of whom
must be the Person’s Chief Executive Officer, Chief Financial Officer or Chief Accounting Officer
or its Vice President, and that complies with Sections 11.04 and 11.05 of this Indenture.



     “144A Global Security” means a Global Security substantially in the form of Exhibit A hereto
bearing the Global Security Legend and the Private Placement Legend, that has the Schedule of
Exchanges of Interests in the Global Security attached thereto, and that is deposited with or on
behalf of, and registered in the name of, the Depositary or its nominee, issued in a denomination
equal to the outstanding principal amount of the Securities initially sold in reliance on Rule
144A.



     “Opinion of Counsel” means a written opinion from legal counsel who is acceptable to the
Trustee and that complies with Sections 11.04 and 11.05 of this Indenture. Such counsel may be an
employee of or counsel to the Company, the Guarantor or the Trustee.



     “Participant” means, with respect to the Depositary, Euroclear or Clearstream, a Person who
has an account with the Depositary, Euroclear or Clearstream, respectively (and, with respect to
DTC, shall include Euroclear and Clearstream).



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



     “Private Placement Legend” means the legend set forth in Section 2.06(g)(1)(A) which is
required to be placed on all Securities issued under this Indenture except where otherwise
permitted by the provisions of this Indenture.



     “Purchase Agreement” means the Purchase Agreement, dated January 7, 2009, among the Company,
the Guarantor and the Initial Purchasers.



     “QIB” means a “qualified institutional buyer” as defined in Rule 144A.



     “Rating Agency” means each of Moody’s, S&P and Fitch; provided, that if any of Moody’s, S&P
and Fitch ceases to rate the Securities or fails to make a rating of the Securities publicly
available, the Company or the Guarantor shall appoint a replacement for such Rating Agency that is
a “nationally recognized statistical rating organization” within the meaning of Rule
15c3-1(c)(2)(vi)(F) under the Exchange Act.



5









 





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



     “Redemption Price” means the price at which the Securities may be redeemed, as set forth in
paragraph 4 of the form of Securities.



     “Registered Exchange Offer” means an offer to exchange Exchange Securities for either Initial
Securities or Additional Securities pursuant to an Exchange Offer Registration Statement as
required by a Registration Rights Agreement.



     “Registration Rights Agreement” means, with respect to the Initial Securities, the
Registration Rights Agreement, dated as of the Issue Date, among the Company, the Guarantor and the
Initial Purchasers, or any similar registration rights agreement with respect to Additional
Securities.



     “Regulation S” means Regulation S promulgated under the Securities Act, as such may be amended
from time to time, or any similar rule or regulation hereafter adopted by the SEC.



     “Regulation S Global Security” means a permanent Global Security substantially in the form of
Exhibit A hereto bearing the Global Security Legend and the Private Placement Legend, that has the
Schedule of Exchanges of Interests in the Global Security attached thereto, and that is deposited
with or on behalf of, and registered in the name of, the Depositary or its nominee, issued in a
denomination equal to the outstanding principal amount of the Securities initially sold in reliance
on Rule 903 of Regulation S.



     “Responsible Officer” means, when used with respect to the Trustee, any officer assigned by
the Trustee to administer corporate trust matters 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.



     “Restricted Definitive Security” means a Definitive Security bearing the Private Placement
Legend.



     “Restricted Global Security” means a Regulation S Global Security or a 144A Global Security.



     “Restricted Period” means the “distribution compliance period” as defined in Regulation S.



     “Rule 144” means Rule 144 promulgated under the Securities Act, as such Rule may be amended
from time to time, or any similar rule (other than Rule 144A) or regulation hereafter adopted by
the SEC providing for offers and sales of securities made in compliance therewith resulting in
offers and sales by subsequent holders that are not affiliates of the issuer of such securities
being free of the registration and prospectus delivery requirements of the Securities Act.



6









 





     “Rule 144A” means Rule 144A promulgated under the Securities Act, as such Rule may be amended
from time to time, or any similar rule (other than Rule 144) or regulation hereafter adopted by the
SEC.



     “Rule 903” means Rule 903 promulgated under the Securities Act, as such Rule may be amended
from time to time, or any similar rule or regulation hereafter adopted by the SEC.



     “Rule 904” means Rule 904 promulgated under the Securities Act, as such Rule may be amended
from time to time, or any similar rule or regulation hereafter adopted by the SEC.



     “S&P” means Standard & Poor’s Ratings Services, a division of The McGraw-Hill Companies, Inc.,
and its successors.



     “Sale and Lease-Back Transaction” means any arrangement with any Person providing for the
leasing by the Guarantor or any Subsidiary of any property, whereby such property had been sold or
transferred by the Guarantor or any Subsidiary to such Person.



     “SEC” means the Securities and Exchange Commission.



     “Securities” means securities issued under this Indenture. The Initial Securities, the
Exchange Securities and the Additional Securities shall be treated as a single class for all
purposes under this Indenture, including, without limitation, waivers, amendments, redemptions and
offers to purchase and unless otherwise provided or the context otherwise requires, all references
to “the Securities” shall include the Initial Securities, the Exchange Securities and the
Additional Securities.



     “Securities Act” means the Securities Act of 1933, as amended, and any successor statute.



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



     “Shelf Registration Statement” means a registration statement of the Company used by a Holder
in connection with its offer and sale of Securities pursuant to a Registration Rights Agreement.



     “Stated Maturity” means, with respect to any Security, the date specified in such Security as
the fixed date on which the principal of such Security is due and payable.



     “Subsidiary” means (1) any corporation, association or other business entity (other than a
partnership, joint venture or limited liability company) of which more than 50% of the total voting
power of shares of Capital Stock entitled (without regard to the occurrence of any contingency) to
vote in the election of directors, managers or trustees thereof is at the time of determination
owned or controlled, directly or indirectly, by the Guarantor or one or more of the other
Subsidiaries or a combination thereof and (2) any partnership, joint venture or limited liability
company of which (x) more than 50% of the capital accounts, distribution rights, total equity and
voting interests or general and limited partnership interests, as applicable, are owned or
controlled, directly or indirectly, by the Guarantor or one or more of the other Subsidiaries or



7









 







a combination thereof, whether in the form of membership, general, special or limited
partnership interests or otherwise, (y) the Guarantor or any of the Subsidiaries is a controlling
general partner or otherwise controls such entity and (z) such entity is consolidated in the
consolidated financial statements of the Guarantor in accordance with GAAP.



     “Taxes” means any tax, duty, levy, impost, assessment or other governmental charge of whatever
nature imposed or levied by or on behalf of the Government of Bermuda or by an authority or agency
therein or thereof having the power to tax, including any interest, penalties or other charges in
respect thereof.



     “TIA” or “Trust Indenture Act” means the Trust Indenture Act of 1939, as amended (15 U.S.C.
Sections 77aaa-77bbbb), as in effect on the Issue Date, except as provided in Section 8.03.



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



     “U.S. Government Obligations” means direct obligations (or certificates representing an
ownership interest in such obligations) of the United States of America for the payment of which
the full faith and credit of the United States of America is pledged.



     “U.S. Person” means a “U.S. person” as defined in Rule 902(k) under the Securities Act.



     “Unrestricted Definitive Security” means a Definitive Security that does not bear and is not
required to bear the Private Placement Legend.



     “Unrestricted Global Security” means a permanent Global Security substantially in the form of
Exhibit A attached hereto that bears the Global Security Legend and that has the “Schedule of
Exchanges of Securities” attached thereto and that is deposited with or on behalf of and registered
in the name of the Depositary or its nominee, representing Securities that do not bear the Private
Placement Legend.



     “Voting Stock” of any specified Person as of any date means the Capital Stock of such Person
that is at the time entitled to vote generally in the election of the Board of Directors of such
Person.



     SECTION 1.02. Other Definitions.



	 	 	 	 	 
	 	 	Defined in
	Term	 	     Section
	“Additional Amounts”
	 	 	3.08	 
	“Authorized Agent”
	 	 	11.10	 
	“Change of Control”
	 	 	3.10	 
	“Change of Control Offer”
	 	 	3.10	 
	“Change of Control Payment Date”
	 	 	3.10	 
	“Change of Control Trigger Event”
	 	 	3.10	 






8









 






	 	 	 	 	 
	 	 	     Defined in
	Term	 	      Section
	“Covenant Defeasance”
	 	 	7.01	(c)
	“Debt”
	 	 	3.07	 
	“DTC”
	 	 	2.03	 
	“Event of Default”
	 	 	5.01	 
	“Excluded Holder”
	 	 	3.08	 
	“Guarantees”
	 	 	9.01	(a)
	“Indenture Obligations”
	 	 	9.01	(a)
	“Initial Securities”
	 	 	Preamble
	“Judgment Currency”
	 	 	11.12	 
	“mortgage” or “mortgages”
	 	 	3.07	 
	“Paying Agent”
	 	 	2.03	 
	“Registrar”
	 	 	2.03	 
	“Territory”
	 	 	3.08	 
	“Trigger Period”
	 	 	3.10	 






     SECTION 1.03. Incorporation by Reference of Trust Indenture Act.



     Whenever this Indenture refers to a provision of the TIA, such 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:



     “commission” means the SEC;



     “indenture securities” means the Securities;



     “indenture security holder” means a Holder;



     “indenture to be qualified” means this Indenture;



     “indenture trustee” or “institutional trustee” means the Trustee; and



     “obligor” on the indenture securities means the Company and the Guarantor.



     All other terms used in this Indenture, and not otherwise defined herein, that are defined by
the TIA, defined by a TIA reference to another statute or defined by an SEC rule under the TIA have
the meanings so assigned to them. All references in this Indenture to “Sections” or “Articles” are
to Sections or Articles, as applicable, of this Indenture, unless otherwise expressly indicated.



     SECTION 1.04. Rules of Construction. 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 GAAP; (3) “or” is not exclusive; (4) words in the singular include the
plural, and in the plural include the singular; (5) words implying any gender shall apply to all
genders; (6) the term “merger” includes a statutory compulsory share exchange and a conversion of a
corporation into a limited liability company, a partnership or other entity and vice versa and (7)
provisions apply to successive events and transactions.



9









 





ARTICLE II

THE SECURITIES




     SECTION 2.01. Form and Dating.



          (a) General. The Securities, any notations thereon relating to the Guarantees and the
Trustee’s certificate of authentication shall be substantially in the form of Exhibit A to this
Indenture, the terms of which are hereby incorporated into this Indenture. The Securities may have
notations, legends or endorsements required by law, securities exchange rule, the Company’s
certificate of incorporation, bylaws, agreements to which the Company is subject, if any, or usage,
provided that any such notation, legend or endorsement is in a form acceptable to the Company. Each
Security shall be dated the date of its authentication. The Securities shall be in registered form
without coupons and issued only in minimum denominations of $2,000 and integral multiples of $1,000
in excess thereof. The terms and provisions contained in the Securities shall constitute, and are
hereby expressly made, a part of this Indenture and, to the extent applicable, the Company, the
Guarantor and the Trustee, by their execution and delivery of this Indenture, expressly agree to
such terms and provisions and to be bound thereby. However, to the extent any provision of any
Security conflicts with the express provisions of this Indenture, the provisions of this Indenture
(to the extent permitted by law) shall govern and be controlling.




          (b) Global Securities. Securities issued in global form shall be substantially in the form of
Exhibit A attached hereto (including the Global Security Legend thereon and the Schedule of
Exchanges of Interests in the Global Security attached thereto). Securities issued in definitive
form shall be substantially in the form of Exhibit A attached hereto (but without the Global
Security Legend thereon and without the Schedule of Exchanges of Interests in the Global Security
attached thereto). Each Global Security shall represent such of the outstanding Securities as
shall be specified therein, and each shall provide that it shall represent the aggregate principal
amount of outstanding Securities from time to time endorsed thereon and that the aggregate
principal amount of outstanding Securities represented thereby may from time to time be reduced or
increased, as appropriate, to reflect exchanges and redemptions. Any endorsement of a Global
Security to reflect the amount of any increase or decrease in the aggregate principal amount of
outstanding Securities represented thereby shall be made by the Trustee or the Securities
Custodian, at the direction of the Trustee, in accordance with instructions given by the Holder
thereof as required by Section 2.06.




          (c) Regulation S Global Securities. Any Securities offered and sold in reliance on Regulation
S shall be issued initially in the form of a Regulation S Global Security, which shall be deposited
on behalf of the purchasers of the Securities represented thereby with the Securities Custodian,
and registered in the name of the Depositary or the nominee of the Depositary for the accounts of
designated agents holding on behalf of Euroclear or Clearstream, duly executed by the Company and
authenticated by the Trustee as hereinafter provided. Prior to the expiration of the Restricted
Period, any resale or transfer of beneficial interests in a Regulation S Global Security to U.S.
Persons shall not be permitted unless such resale or transfer is made pursuant to Rule 144A or
Regulation S.




10









 








          (d) 144A Global Securities. Any Securities offered and sold in reliance on Rule 144A shall be
issued initially in the form of a 144A Global Security, which shall be deposited on behalf of the
purchasers of the Securities represented thereby with the Securities Custodian, and registered in
the name of the Depositary or the nominee of the Depositary, duly executed by the Company and
authenticated by the Trustee as hereinafter provided.




          (e) Definitive Securities. Notwithstanding any other provision of this Article II, any
issuance of Definitive Securities shall be at the Company’s discretion, except in the specific
circumstances set forth in Section 2.06(a).




     SECTION 2.02. Execution and Authentication. One Officer of the Company shall sign the
Securities on behalf of the Company by manual or facsimile signature. The Company’s seal may be
(but shall not be required to be) impressed, affixed, imprinted or reproduced on the Securities and
may be in facsimile form.



     If an Officer of the Company whose signature is on this Indenture or a Security no longer
holds that office at the time the Trustee authenticates such Security or at any time thereafter,
the Security shall be valid nevertheless.



     A Security shall not be entitled to any benefit under this Indenture or be valid or obligatory
for any purpose until authenticated by the manual signature of an authorized signatory of the
Trustee, which signature shall be conclusive evidence that the Security has been authenticated
under this Indenture.



     The Trustee shall authenticate and deliver: (1) Initial Securities for original issue in an
aggregate principal amount of $1,125,000,000, (2) if and when issued, Additional Securities (which
may be issued in either a registered or a private offering under the Securities Act) and (3)
Exchange Securities for issue only in an exchange offer pursuant to a Registration Rights
Agreement, and only in exchange for Initial Securities or Additional Securities of an equal
principal amount, in each case upon a written order of the Company signed by one Officer of the
Company. Such order shall specify the amount of the Securities to be authenticated and the date on
which the issue of Securities is to be authenticated and whether the Securities are to be in global
or definitive form and whether they are to bear the Private Placement Legend. The Company may
issue Additional Securities under this Indenture subsequent to the Issue Date, provided that no
Additional Securities may be issued at a price that would cause such Additional Securities to have
“original issue discount” within the meaning of Section 1273 of the Code. In authenticating such
Securities, the Trustee shall be entitled to receive, and shall be entitled to rely upon, an
Opinion of Counsel substantially to the effect that such Securities, when authenticated and
delivered by the Trustee and issued by the Company in the manner and subject to any conditions
specified in such Opinion of Counsel, will constitute valid and legally binding obligations of the
Company enforceable in accordance with their terms, subject to bankruptcy, insolvency, fraudulent
transfer, reorganization, moratorium and similar laws of general applicability relating to or
affecting creditors’ rights and to general equity principles.



     The aggregate principal amount of Securities outstanding at any time may not exceed the
aggregate principal amount of Securities authorized for issuance by the Company pursuant to such
written orders of the Company, except as provided in Section 2.07. Subject to the



11









 







foregoing, the aggregate principal amount of Securities that may be issued under this
Indenture shall not be limited.



     The Trustee may appoint an authenticating agent acceptable to the Company to authenticate
Securities. Unless limited by the terms of such appointment, 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 the Company, the Guarantor or any of their respective
Affiliates.



     SECTION 2.03. Registrar and Paying Agent. The Company shall maintain in the continental
United States an office or agency where Securities may be presented for registration of transfer or
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.



     The Company shall enter into an appropriate agency agreement with any Registrar or Paying
Agent not a party to this Indenture. The agreement shall implement the provisions of this Indenture
that relate to such Agent. The Company shall notify the Trustee of the name and address of any
Agent not a party to this Indenture. The Company may change any Paying Agent or Registrar without
notice to any Holder. If the Company fails to appoint or maintain another entity as Registrar or
Paying Agent, the Trustee shall act as such. The Guarantor or any of its Subsidiaries may act as
Paying Agent or Registrar.



     The Company initially appoints Wells Fargo Bank, National Association, as Registrar and Paying
Agent for the Securities at its Corporate Trust Office. The place of payment with respect to the
Securities, in addition to the Corporate Trust Office of the Trustee, shall be The City of New
York, and the Company hereby appoints Wells Fargo Bank, National Association, as its Paying Agent
in The City of New York, at its corporate trust office in such city, which, at the date hereof, is
located at 45 Broadway, 14th Floor, New York, New York 10006-3007, the intention of the
Company being that the Securities shall at all times be payable in The City of New York.



     The immunities, protections and exculpations available to the Trustee under this Indenture
shall also be available to each Agent, and the Company’s obligations under Section 6.07 to
compensate and indemnify the Trustee shall extend likewise to each Agent.



     The Company initially appoints The Depository Trust Company (“DTC”) to act as Depositary with
respect to each Global Security.



     SECTION 2.04. 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
of or premium, if any, Additional Amounts, if any, or interest on the Securities, whether such
money shall have been paid to it by the Company or the Guarantor, and



12









 







will notify the Trustee of any default by the Company or the Guarantor in making any such
payment. While any such default continues, the Trustee may require a Paying Agent to pay all money
held by it to the Trustee and to account for any funds disbursed. The Company at any time may
require a Paying Agent to pay all money held by it to the Trustee and to account for any funds
disbursed. Upon payment over to the Trustee and upon accounting for any funds disbursed, the Paying
Agent (if other than the Company) shall have no further liability for the money. If the Company or
a Subsidiary of the Company 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.



     SECTION 2.05. 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 Holders and shall
otherwise comply with TIA Section 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 Holders, and the Company shall
otherwise comply with TIA Section 312(a).



     SECTION 2.06. Transfer and Exchange.



          (a) Transfer and Exchange of Global Securities. A Global Security may not be transferred as a
whole except by the Depositary to a nominee of the Depositary, by a nominee of the Depositary to
the Depositary or to another nominee of the Depositary, or by the Depositary or any such nominee to
a successor Depositary or a nominee of such successor Depositary. Global Securities also may be
exchanged or replaced, in whole, as provided in Section 2.07. Owners of beneficial interests in
Global Securities shall not be entitled to receive Definitive Securities unless:





          (1) the Company delivers to the Trustee and the Registrar notice from the Depositary
that it is unwilling or unable to continue to act as Depositary or that it is no longer a
clearing agency registered under the Exchange Act and, in either case, a successor
Depositary is not appointed by the Company within 90 days;




          (2) there has occurred and is continuing an Event of Default and the Depositary
notifies the Trustee of its decision to exchange the Global Securities for Definitive
Securities; provided that in no event shall the Regulation S Global Security be exchanged by
the Company for Definitive Securities prior to the expiration of the Restricted Period; or




          (3) any such owner requests (through a Participant or an Indirect Participant) an
exchange of its beneficial interest in a Global Security for a Definitive Security, and the
Depositary gives the Trustee and the Registrar, in accordance with the Applicable
Procedures, at least 20 days’ prior notice of the request.


Upon the occurrence of any of the events in clause (1), (2) or (3) above, Definitive Securities
shall be issued in such names and authorized denominations as the Depositary shall instruct the
Trustee and the Registrar in accordance with the Applicable Procedures. Neither the Company,



13









 






the Guarantor nor the Trustee or the Registrar will be liable for any delay by the Depositary in
identifying the owners of beneficial interests in a Global Security, and each of the Company, the
Guarantor, the Trustee and the Registrar may conclusively rely on, and will be protected in relying
on, instructions from the Depository for all purposes of this Indenture.




          (b) Transfer and Exchange of Beneficial Interests in the Global Securities. The transfer and
exchange of beneficial interests in the Global Securities shall be effected through the Depositary,
in accordance with the provisions of this Indenture and the Applicable Procedures. Transfers of
beneficial interests in the Global Securities also shall require compliance with either
subparagraph (1) or (2) below, as applicable, as well as one or more of the other following
provisions of this Section 2.06, as applicable:





          (1) Transfer of Beneficial Interests in the Same Global Security. Beneficial interests
in any Restricted Global Security may be transferred to Persons who take delivery thereof in
the form of a beneficial interest in the same Restricted Global Security in accordance with
the transfer restrictions set forth in the Private Placement Legend; provided, however, that
prior to the expiration of the Restricted Period, (A) transfers of beneficial interests in
the Regulation S Global Security may not be to a U.S. Person or for the account or benefit
of a U.S. Person (other than an Initial Purchaser) and (B) such beneficial interests may be
held only through Euroclear or Clearstream (as Indirect Participants in the Depositary).
Beneficial interests in any Unrestricted Global Security may be transferred to Persons who
take delivery thereof in the form of a beneficial interest in such Unrestricted Global
Security. No written orders or instructions shall be required to be delivered to the
Registrar to effect the transfers described in the preceding sentence of this Section
2.06(b)(1).




          (2) All Other Transfers and Exchanges of Beneficial Interests in Global Securities. In
connection with all transfers and exchanges of beneficial interests that are not subject to
Section 2.06(b)(1) above, the transferor of such beneficial interest must deliver to the
Registrar either:




     (A) (i) a written order from a Participant or an Indirect Participant given to
the Depositary in accordance with the Applicable Procedures directing the Depositary
to credit or cause to be credited a beneficial interest in another Global Security
in an amount equal to the beneficial interest to be transferred or exchanged; and




          (ii) instructions given in accordance with the Applicable Procedures containing
information regarding the Participant account to be credited with such increase; or




     (B) (i) a written order from a Participant or an Indirect Participant given to
the Depositary in accordance with the Applicable Procedures directing the Depositary
to cause to be issued a Definitive Security in an amount equal to the beneficial
interest to be transferred or exchanged; and



14









 






          (ii) instructions given by the Depositary to the Registrar containing
information regarding the Person in whose name such Definitive Security shall be
registered to effect the transfer or exchange referred to in Section
2.06(b)(2)(B)(i) above; provided that in no event shall Definitive Securities be
issued upon the transfer or exchange of beneficial interests in the Regulation S
Global Security prior to the expiration of the Restricted Period.


Upon consummation of a Registered Exchange Offer by the Company in accordance with Section 2.06(f),
the requirements of this Section 2.06(b)(2) shall be deemed to have been satisfied upon receipt by
the Registrar of the instructions contained in the Letter of Transmittal delivered by the Holder of
such beneficial interests in the Restricted Global Securities (or transmitted to the Registrar via
the Depositary’s book-entry system). Upon satisfaction of all of the requirements for transfer or
exchange of beneficial interests in Global Securities contained in this Indenture, the Securities
or otherwise applicable under the Securities Act, the principal amount of each relevant Global
Security shall be adjusted pursuant to Section 2.06(h).





          (3) Transfer of Beneficial Interests to Another Restricted Global Security. A
beneficial interest in any Restricted Global Security may be transferred to a Person who
takes delivery thereof in the form of a beneficial interest in another Restricted Global
Security if the transfer complies with the requirements of Section 2.06(b)(2) above and the
Registrar receives the following:




     (A) if the transferee will take delivery in the form of a beneficial interest
in the 144A Global Security, then the transferor must deliver a certificate in the
form of Exhibit B hereto, including the certifications in item (1) thereof; and




     (B) if the transferee will take delivery in the form of a beneficial interest
in the Regulation S Global Security, then the transferor must deliver a certificate
in the form of Exhibit B hereto, including the certifications in item (2) thereof,
and if such transfer occurs prior to the expiration of the Restricted Period, then
the transferee must hold such beneficial interest through either Euroclear or
Clearstream (as Indirect Participants in the Depositary).




          (4) Transfer and Exchange of Beneficial Interests in a Restricted Global Security for
Beneficial Interests in the Unrestricted Global Security. A beneficial interest in any
Restricted Global Security may be exchanged by any holder thereof for a beneficial interest
in an Unrestricted Global Security or transferred to a Person who takes delivery thereof in
the form of a beneficial interest in an Unrestricted Global Security if the exchange or
transfer complies with the requirements of Section 2.06(b)(2) above:




     (A) such exchange or transfer is effected pursuant to a Registered Exchange
Offer in accordance with the applicable Registration Rights Agreement and the holder
of the beneficial interest to be transferred, in the case of an exchange, or the
transferee, in the case of a transfer, certifies in the applicable Letter of
Transmittal (or via the Depositary’s book-entry system) that it is not (i) a
broker-dealer, (ii) a Person participating in the distribution of the Exchange



15









 






Securities or (iii) a Person who is an affiliate (as defined in Rule 144) of
the Company;




     (B) such transfer is effected pursuant to a Shelf Registration Statement in
accordance with the applicable Registration Rights Agreement;




     (C) such transfer is effected by an Exchanging Dealer pursuant to an Exchange
Offer Registration Statement in accordance with the applicable Registration Rights
Agreement; or




     (D) the Registrar receives the following:




          (i) if the holder of such beneficial interest in a Restricted Global Security
proposes to exchange such beneficial interest for a beneficial interest in an
Unrestricted Global Security, a certificate from such holder in the form of Exhibit
C hereto, including the certifications in item (1)(a) thereof; or




          (ii) if the holder of such beneficial interest in a Restricted Global Security
proposes to transfer such beneficial interest to a Person who shall take delivery
thereof in the form of a beneficial interest in an Unrestricted Global Security, a
certificate from such holder in the form of Exhibit B hereto, including the
certifications in item (4) thereof;




and, in each such case set forth in this subparagraph (D), if the Registrar so
requests or if the Applicable Procedures so require, an Opinion of Counsel in form
reasonably acceptable to the Registrar to the effect that such exchange or transfer
is in compliance with the Securities Act and state “blue sky” laws and that the
restrictions on transfer contained herein and in the Private Placement Legend are no
longer required in order to maintain compliance with the Securities Act.




If any such transfer is effected pursuant to subparagraph (B) or (D) above at a time when an
Unrestricted Global Security has not yet been issued, the Company shall issue and, upon
receipt of a written order in accordance with Section 2.02 hereof, the Trustee shall
authenticate one or more Unrestricted Global Securities in an aggregate principal amount
equal to the aggregate principal amount of beneficial interests transferred pursuant to
subparagraph (B) or (D) above.




               (5) Exchange or Transfer Prohibited. Beneficial interests in an Unrestricted Global
Security cannot be exchanged for, or transferred to Persons who take delivery thereof in the
form of, a beneficial interest in a Restricted Global Security.



          (c) Transfer or Exchange of Beneficial Interests for Definitive Securities.





               (1) Beneficial Interests in Restricted Global Securities to Restricted Definitive
Securities. If any holder of a beneficial interest in a Restricted Global Security proposes
to exchange such beneficial interest for a Restricted Definitive Security or to transfer
such beneficial interest to a Person who takes delivery thereof in the form of a



16









 







Restricted Definitive Security, then, upon receipt by the Registrar of the following
documentation:




     (A) if the holder of such beneficial interest in a Restricted Global Security
proposes to exchange such beneficial interest for a Restricted Definitive Security,
a certificate from such holder in the form of Exhibit C hereto, including the
certifications in item (2)(a) thereof;




     (B) if such beneficial interest is being transferred to a QIB in accordance
with Rule 144A, a certificate to the effect set forth in Exhibit B hereto, including
the certifications in item (1) thereof; or




     (C) if such beneficial interest is being transferred to a non-U.S. Person in an
offshore transaction in accordance with Rule 904, a certificate to the effect set
forth in Exhibit B hereto, including the certifications in item (2) thereof,




the Registrar shall cause the aggregate principal amount of the applicable Global Security
to be reduced accordingly pursuant to Section 2.06(h), and the Company shall execute and the
Trustee shall authenticate and deliver to the Person designated in the instructions a
Definitive Security in the appropriate principal amount. Any Definitive Security issued in
exchange for a beneficial interest in a Restricted Global Security pursuant to this Section
2.06(c) shall be registered in such name or names and in such authorized denomination or
denominations as the holder of such beneficial interest shall instruct the Registrar through
instructions from the Depositary and the Participant or Indirect Participant. The Trustee
shall deliver such Definitive Securities to the Persons in whose names such Securities are
so registered. Any Definitive Security issued in exchange for a beneficial interest in a
Restricted Global Security pursuant to this Section 2.06(c)(1) shall bear the Private
Placement Legend and shall be subject to all restrictions on transfer contained therein.
Notwithstanding Sections 2.06(c)(1)(A) and (C), a beneficial interest in the Regulation S
Global Security may not be exchanged for a Definitive Security or transferred to a Person
who takes delivery thereof in the form of a Definitive Security prior to the expiration of
the Restricted Period, except in the case of a transfer pursuant to an exemption from the
registration requirements of the Securities Act other than Rule 904.




          (2) Beneficial Interests in Restricted Global Securities to Unrestricted Definitive
Securities. A holder of a beneficial interest in a Restricted Global Security may exchange
such beneficial interest for an Unrestricted Definitive Security or may transfer such
beneficial interest to a Person who takes delivery thereof in the form of an Unrestricted
Definitive Security only if:




     (A) such exchange or transfer is effected pursuant to a Registered Exchange
Offer in accordance with the applicable Registration Rights Agreement and the holder
of such beneficial interest, in the case of an exchange, or the transferee, in the
case of a transfer, certifies in the applicable Letter of Transmittal (or via the
Depositary’s book-entry system) that it is not (i) a broker-dealer, (ii) a



17









 







Person participating in the distribution of the Exchange Securities or (iii) a
Person who is an affiliate (as defined in Rule 144) of the Company;




     (B) such transfer is effected pursuant to a Shelf Registration Statement in
accordance with the applicable Registration Rights Agreement;




     (C) such transfer is effected by an Exchanging Dealer pursuant to an Exchange
Offer Registration Statement in accordance with the applicable Registration Rights
Agreement; or




     (D) the Registrar receives the following:




          (i) if the holder of such beneficial interest in a Restricted Global Security
proposes to exchange such beneficial interest for an Unrestricted Definitive
Security, a certificate from such holder in the form of Exhibit C hereto, including
the certifications in item (1)(b) thereof; or




          (ii) if the holder of such beneficial interest in a Restricted Global Security
proposes to transfer such beneficial interest to a Person who shall take delivery
thereof in the form of an Unrestricted Definitive Security, a certificate from such
holder in the form of Exhibit B hereto, including the certifications in item (4)
thereof;




and, in each such case set forth in this subparagraph (D), if the Registrar so requests or
if the Applicable Procedures so require, an Opinion of Counsel in form reasonably acceptable
to the Registrar to the effect that such exchange or transfer is in compliance with the
Securities Act and state “blue sky” laws and that the restrictions on transfer contained
herein and in the Private Placement Legend are no longer required in order to maintain
compliance with the Securities Act.




          (3) Beneficial Interests in Unrestricted Global Securities to Unrestricted Definitive
Securities. If any holder of a beneficial interest in an Unrestricted Global Security
proposes to exchange such beneficial interest for a Definitive Security or to transfer such
beneficial interest to a Person who takes delivery thereof in the form of a Definitive
Security, then, upon satisfaction of the conditions set forth in Section 2.06(b)(2)(B), the
Registrar shall cause the aggregate principal amount of the applicable Global Security to be
reduced accordingly pursuant to Section 2.06(h), and the Company shall execute and the
Trustee shall authenticate and deliver to the Person designated in the instructions a
Definitive Security in the appropriate principal amount. Any Definitive Security issued in
exchange for a beneficial interest pursuant to this Section 2.06(c)(3) shall be registered
in such name or names and in such authorized denomination or denominations as the holder of
such beneficial interest shall instruct the Registrar through instructions from the
Depositary and the Participant or Indirect Participant. The Trustee shall deliver such
Definitive Securities to the Persons in whose names such Securities are so registered. Any
Definitive Security issued in exchange for a beneficial interest pursuant to this Section
2.06(c)(3) shall not bear the Private Placement Legend.



18









 





          (d) Transfer and Exchange of Definitive Securities for Beneficial Interests.





          (1) Restricted Definitive Securities to Beneficial Interests in Restricted Global
Securities. If any Holder of a Restricted Definitive Security proposes to exchange such
Security for a beneficial interest in a Restricted Global Security or to transfer such
Restricted Definitive Security to a Person who takes delivery thereof in the form of a
beneficial interest in a Restricted Global Security, then, upon receipt by the Registrar of
the following documentation:




     (A) if the Holder of such Restricted Definitive Security proposes to exchange
such Security for a beneficial interest in a Restricted Global Security, a
certificate from such Holder in the form of Exhibit C hereto, including the
certifications in item (2)(b) thereof;




     (B) if such Restricted Definitive Security is being transferred to a QIB in
accordance with Rule 144A, a certificate to the effect set forth in Exhibit B
hereto, including the certifications in item (1) thereof; or




     (C) if such Restricted Definitive Security is being transferred to a non-U.S.
Person in an offshore transaction in accordance with Rule 904, a certificate to the
effect set forth in Exhibit B hereto, including the certifications in item (2)
thereof,




the Trustee shall cancel the Restricted Definitive Security, the Registrar shall increase or
cause to be increased the aggregate principal amount of, in the case of clause (A) above,
the appropriate Restricted Global Security, in the case of clause (B) above, the 144A Global
Security, and in the case of clause (C) above, the Regulation S Global Security.




          (2) Restricted Definitive Securities to Beneficial Interests in Unrestricted Global
Securities. A Holder of a Restricted Definitive Security may exchange such Security for a
beneficial interest in an Unrestricted Global Security or transfer such Restricted
Definitive Security to a Person who takes delivery thereof in the form of a beneficial
interest in an Unrestricted Global Security only if:




     (A) such exchange or transfer is effected pursuant to a Registered Exchange
Offer in accordance with applicable Registration Rights Agreement and the Holder, in
the case of an exchange, or the transferee, in the case of a transfer, certifies in
the applicable Letter of Transmittal (or via the Depositary’s book-entry system)
that it is not (i) a broker-dealer, (ii) a Person participating in the distribution
of the Exchange Securities or (iii) a Person who is an affiliate (as defined in Rule
144) of the Company;




     (B) such transfer is effected pursuant to a Shelf Registration Statement in
accordance with the applicable Registration Rights Agreement;




     (C) such transfer is effected by an Exchanging Dealer pursuant to an Exchange
Offer Registration Statement in accordance with the applicable Registration Rights
Agreement; or



19









 






     (D) the Registrar receives the following:




          (i) if the Holder of such Definitive Securities proposes to exchange such
Securities for a beneficial interest in the Unrestricted Global Security, a
certificate from such Holder in the form of Exhibit C hereto, including the
certifications in item (1)(c) thereof; or




          (ii) if the Holder of such Definitive Securities proposes to transfer such
Securities to a Person who shall take delivery thereof in the form of a beneficial
interest in the Unrestricted Global Security, a certificate from such Holder in the
form of Exhibit B hereto, including the certifications in item (4) thereof;




and, in each such case set forth in this subparagraph (D), if the Registrar so requests or
if the Applicable Procedures so require, an Opinion of Counsel in form reasonably acceptable
to the Registrar to the effect that such exchange or transfer is in compliance with the
Securities Act and state “blue sky” laws and that the restrictions on transfer contained
herein and in the Private Placement Legend are no longer required in order to maintain
compliance with the Securities Act.




Upon satisfaction of the conditions of any of the subparagraphs in this Section 2.06(d)(2),
the Trustee shall cancel the Definitive Securities and the Registrar shall increase or cause
to be increased the aggregate principal amount of the Unrestricted Global Security.




          (3) Unrestricted Definitive Securities to Beneficial Interests in Unrestricted Global
Securities. A Holder of an Unrestricted Definitive Security may exchange such Security for
a beneficial interest in an Unrestricted Global Security or transfer such Definitive
Security to a Person who takes delivery thereof in the form of a beneficial interest in an
Unrestricted Global Security at any time. Upon receipt of a request for such an exchange or
transfer, the Trustee shall cancel the applicable Unrestricted Definitive Security and the
Registrar shall increase or cause to be increased the aggregate principal amount of one of
the Unrestricted Global Securities.



     If any such exchange or transfer from a Definitive Security to a beneficial interest is
effected pursuant to subparagraphs (2)(B), (2)(D) or (3) of this Section 2.06(d) at a time when an
Unrestricted Global Security has not yet been issued, the Company shall issue and, upon receipt of
an Authentication Order in accordance with Section 2.02, the Trustee shall authenticate one or more
Unrestricted Global Securities in an aggregate principal amount equal to the principal amount of
Definitive Securities so transferred.



          (e) Transfer and Exchange of Definitive Securities for Definitive Securities. Upon request by
a Holder of Definitive Securities and such Holder’s compliance with the provisions of this Section
2.06(e), the Registrar shall register the transfer or exchange of Definitive Securities. Prior to
such registration of transfer or exchange, the requesting Holder shall present or surrender to the
Registrar the Definitive Securities duly endorsed or accompanied by a written instruction of
transfer in form satisfactory to the Registrar duly executed by such Holder or by its attorney,
duly authorized in writing. In addition, the




20









 




requesting Holder shall provide any additional certifications, documents and information, as
applicable, required pursuant to the following provisions of this Section 2.06(e).





         (1) Restricted Definitive Securities to Restricted Definitive Securities. Any
Restricted Definitive Security may be transferred to and registered in the name of Persons
who take delivery thereof in the form of a Restricted Definitive Security if the Registrar
receives the following:




     (A) if the transfer will be made pursuant to Rule 144A, then the transferor
must deliver a certificate in the form of Exhibit B hereto, including the
certifications in item (1) thereof;




     (B) if the transfer will be made pursuant to Rule 904, then the transferor must
deliver a certificate in the form of Exhibit B hereto, including the certifications
in item (2) thereof; and




     (C) if the transfer will be made pursuant to any other exemption from the
registration requirements of the Securities Act, then the transferor must deliver a
certificate in the form of Exhibit B hereto, including the certifications required
by item (3) thereof.




          (2) Restricted Definitive Securities to Unrestricted Definitive Securities. Any
Restricted Definitive Security may be exchanged by the Holder thereof for an Unrestricted
Definitive Security or transferred to a Person or Persons who take delivery thereof in the
form of an Unrestricted Definitive Security if:




     (A) such exchange or transfer is effected pursuant to a Registered Exchange
Offer in accordance with the applicable Registration Rights Agreement and the
Holder, in the case of an exchange, or the transferee, in the case of a transfer,
certifies in the applicable Letter of Transmittal (or via the Depositary’s
book-entry system) that it is not (i) a broker-dealer, (ii) a Person participating
in the distribution of the Exchange Securities or (iii) a Person who is an affiliate
(as defined in Rule 144) of the Company;




     (B) any such transfer is effected pursuant to a Shelf Registration Statement in
accordance with the applicable Registration Rights Agreement;




     (C) any such transfer is effected by an Exchanging Dealer pursuant to an
Exchange Offer Registration Statement in accordance with the applicable Registration
Rights Agreement; or




     (D) the Registrar receives the following:




          (i) if the Holder of such Restricted Definitive Securities proposes to exchange
such Securities for an Unrestricted Definitive Security, a certificate from such
Holder in the form of Exhibit C hereto, including the certifications in item (1)(d)
thereof; or



21









 






          (ii) if the Holder of such Restricted Definitive Security proposes to transfer
such Securities to a Person who shall take delivery thereof in the form of an
Unrestricted Definitive Security, a certificate from such Holder in the form of
Exhibit B hereto, including the certifications in item (4) thereof;




and, in each such case set forth in this subparagraph (D), if the Registrar so requests, an
Opinion of Counsel in form reasonably acceptable to the Registrar to the effect that such
exchange or transfer is in compliance with the Securities Act and state “blue sky” laws and
that the restrictions on transfer contained herein and in the Private Placement Legend are
no longer required in order to maintain compliance with the Securities Act.




          (3) Unrestricted Definitive Securities to Unrestricted Definitive Securities. A Holder
of Unrestricted Definitive Securities may transfer such Securities to a Person who takes
delivery thereof in the form of an Unrestricted Definitive Security. Upon receipt of a
request to register such a transfer, the Registrar shall register the Unrestricted
Definitive Security pursuant to the instructions from the Holder thereof.



          (f) Registered Exchange Offer. Upon the occurrence of a Registered Exchange Offer in
accordance with the applicable Registration Rights Agreement, the Company shall issue and, upon
receipt of a written order in accordance with Section 2.02, the Trustee shall authenticate:





          (1) one or more Unrestricted Global Securities in an aggregate principal amount equal
to the principal amount of the beneficial interests in the Restricted Global Securities
tendered for acceptance by Persons that certify in the applicable Letters of Transmittal (or
via the Depositary’s book-entry system), among other things, that (A) they are not
broker-dealers, (B) they are not participating in a distribution of the Exchange Securities
and (C) they are not affiliates (as defined in Rule 144) of the Company, and accepted for
exchange in the Registered Exchange Offer; and




          (2) Unrestricted Definitive Securities in an aggregate principal amount equal to the
principal amount of any Restricted Definitive Securities accepted for exchange in the
Registered Exchange Offer.



     Concurrently with the issuance of such Securities, the Registrar shall cause the aggregate
principal amount of the applicable Restricted Global Securities to be reduced accordingly, and the
Company shall execute and the Trustee shall authenticate, and deliver to the Persons designated by
the Holders of any Definitive Securities so accepted, Unrestricted Definitive Securities in the
appropriate principal amount.



          (g) Legends. The following legends shall appear on the face of all Global Securities and
Definitive Securities issued under this Indenture unless specifically stated otherwise in the
applicable provisions of this Indenture.





     (1) Private Placement Legend.




     (A) Except as permitted by subparagraph (B) below or as otherwise agreed
between the Company and the Holder, each Global Security and each



22









 







Definitive Security (and all Securities issued in exchange therefor or
substitution thereof) shall bear a legend, until the Resale Restriction Termination
Date referred to therein, in substantially the following form:




     THIS SECURITY HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS
AMENDED (THE “SECURITIES ACT”), OR ANY STATE SECURITIES LAWS. NEITHER THIS SECURITY
NOR ANY INTEREST OR PARTICIPATION HEREIN MAY BE REOFFERED, SOLD, ASSIGNED,
TRANSFERRED, PLEDGED, ENCUMBERED OR OTHERWISE DISPOSED OF IN THE ABSENCE OF SUCH
REGISTRATION OR UNLESS SUCH TRANSACTION IS EXEMPT FROM, OR NOT SUBJECT TO, THE
REGISTRATION REQUIREMENTS OF THE SECURITIES ACT.




     THE HOLDER OF THIS SECURITY BY ITS ACCEPTANCE HEREOF (1) REPRESENTS THAT (A) IT
IS A “QUALIFIED INSTITUTIONAL BUYER” (AS DEFINED IN RULE 144A UNDER THE SECURITIES
ACT (“RULE 144A”)), OR (B) IT IS A NON-U.S. PURCHASER AND IS ACQUIRING THIS SECURITY
IN AN OFFSHORE TRANSACTION WITHIN THE MEANING OF REGULATION S UNDER THE SECURITIES
ACT, PURSUANT TO RULE 904 OF REGULATION S, AND (2) AGREES TO OFFER, SELL OR
OTHERWISE TRANSFER SUCH SECURITY, PRIOR TO THE DATE (THE “RESALE RESTRICTION
TERMINATION DATE”) WHICH IS ONE YEAR (OR SUCH OTHER DATE WHEN RESALES OF SECURITIES
BY NON-AFFILIATES ARE FIRST PERMITTED UNDER RULE 144(d)) AFTER THE LATER OF THE
ORIGINAL ISSUE DATE HEREOF (OR ANY PREDECESSOR OF THIS SECURITY) OR THE DATE OF ANY
SUBSEQUENT REOPENING OF THE SECURITIES AND THE LAST DATE ON WHICH THE COMPANY OR ANY
AFFILIATE OF THE COMPANY WAS THE OWNER OF THIS SECURITY (OR ANY PREDECESSOR OF SUCH
SECURITY), ONLY (A) TO NABORS INDUSTRIES LIMITED OR ANY OF ITS SUBSIDIARIES, (B)
PURSUANT TO A REGISTRATION STATEMENT WHICH HAS BEEN DECLARED EFFECTIVE UNDER THE
SECURITIES ACT, (C) FOR SO LONG AS THE SECURITIES ARE ELIGIBLE FOR RESALE PURSUANT
TO RULE 144A, TO A PERSON IT REASONABLY BELIEVES IS A “QUALIFIED INSTITUTIONAL
BUYER” AS DEFINED IN RULE 144A THAT PURCHASES FOR ITS OWN ACCOUNT OR FOR THE ACCOUNT
OF A QUALIFIED INSTITUTIONAL BUYER TO WHOM NOTICE IS GIVEN THAT THE TRANSFER IS
BEING MADE IN RELIANCE ON RULE 144A, (D) PURSUANT TO OFFERS AND SALES TO NON-U.S.
PURCHASERS THAT OCCUR OUTSIDE THE UNITED STATES WITHIN THE MEANING OF REGULATION S
UNDER THE SECURITIES ACT, PURSUANT TO RULE 904 OF REGULATION S, OR (E) PURSUANT TO
ANOTHER AVAILABLE EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT
AND



23









 







THE SECURITIES LAWS OF ANY OTHER JURISDICTION, INCLUDING ANY STATE OF THE
UNITED STATES, SUBJECT TO THE COMPANY’S AND THE TRUSTEE’S RIGHT PRIOR TO ANY SUCH
OFFER, SALE OR TRANSFER TO REQUIRE THE DELIVERY OF AN OPINION OF COUNSEL
SATISFACTORY TO EACH OF THEM AND/OR A CERTIFICATE OF TRANSFER OR EXCHANGE IN THE
FORM PRESCRIBED IN THE INDENTURE. THIS LEGEND WILL BE REMOVED UPON THE REQUEST OF
THE HOLDER AFTER THE RESALE RESTRICTION TERMINATION DATE.




     BY ITS ACQUISITION AND HOLDING OF THIS SECURITY THE HOLDER THEREOF WILL BE
DEEMED TO HAVE REPRESENTED, WARRANTED AND AGREED THAT EITHER (I) IT IS NOT AN
EMPLOYEE BENEFIT PLAN OR ARRANGEMENT SUBJECT TO THE FIDUCIARY RESPONSIBILITY
REQUIREMENT OF TITLE I OF U.S. EMPLOYEE RETIREMENT INCOME SECURITY ACT OF 1974, AS
AMENDED (“ERISA”), A “PLAN” OR ARRANGEMENT SUBJECT TO SECTION 4975 OF THE U.S.
INTERNAL REVENUE CODE OF 1986, AS AMENDED (THE “CODE”), OR AN ENTITY WHOSE
UNDERLYING ASSETS INCLUDE PLAN ASSETS BY REASON OF SUCH EMPLOYEE BENEFIT PLAN OR
PLAN’S INVESTMENT IN THE ENTITY, OR A GOVERNMENTAL, NON-U.S., CHURCH OR OTHER PLAN
WHICH IS SUBJECT TO ANY FEDERAL, STATE, LOCAL, NON-U.S. OR OTHER LAWS OR REGULATIONS
THAT ARE SIMILAR TO SUCH PROVISIONS OF ERISA OR THE CODE (“SIMILAR LAWS”), OR (II)
THE PURCHASE, HOLDING AND DISPOSITION OF THIS SECURITY WILL NOT CONSTITUTE A
NON-EXEMPT PROHIBITED TRANSACTION UNDER SECTION 406 OF ERISA OR SECTION 4975 OF THE
CODE OR, IN THE CASE OF A GOVERNMENTAL, NON-U.S., CHURCH OR OTHER PLAN, A SIMILAR
VIOLATION UNDER ANY APPLICABLE SIMILAR LAWS.




     (B) Notwithstanding the foregoing, any Global Security or Definitive Security
issued pursuant to subparagraph (b)(4), (c)(2), (c)(3), (d)(2), (d)(3), (e)(2),
(e)(3) or (f) of this Section 2.06 (and all Securities issued in exchange therefor
or substitution thereof) shall not bear the Private Placement Legend.




          (2) Global Security Legend. Each Global Security shall bear a legend in substantially
the following form:




     THIS GLOBAL SECURITY IS HELD BY THE DEPOSITARY (AS DEFINED IN THE INDENTURE
GOVERNING THIS SECURITY) OR ITS NOMINEE IN CUSTODY FOR THE BENEFIT OF THE BENEFICIAL
OWNERS HEREOF, AND IS NOT TRANSFERABLE TO ANY PERSON UNDER ANY CIRCUMSTANCES EXCEPT
THAT (I) THE REGISTRAR MAY MAKE SUCH NOTATIONS HEREON AS MAY BE REQUIRED PURSUANT TO
SECTION 2.06 OF THE INDENTURE, (II)




24











 






THIS GLOBAL SECURITY MAY BE EXCHANGED IN WHOLE BUT NOT IN PART PURSUANT TO
SECTION 2.06(a) OF THE INDENTURE AND (III) THIS GLOBAL SECURITY MAY BE DELIVERED TO
THE TRUSTEE FOR CANCELLATION PURSUANT TO SECTION 2.11 OF THE INDENTURE.




      UNLESS AND UNTIL IT IS EXCHANGED IN WHOLE OR IN PART FOR SECURITIES IN
DEFINITIVE FORM, THIS SECURITY MAY NOT BE TRANSFERRED EXCEPT AS A WHOLE BY THE
DEPOSITARY TO A NOMINEE OF THE DEPOSITARY OR BY A NOMINEE OF THE DEPOSITARY TO THE
DEPOSITARY OR ANOTHER NOMINEE OF THE DEPOSITARY OR BY THE DEPOSITARY OR ANY SUCH
NOMINEE TO A SUCCESSOR DEPOSITARY OR A NOMINEE OF SUCH SUCCESSOR DEPOSITARY. UNLESS
THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY
TRUST COMPANY (55 WATER STREET, NEW YORK, NEW YORK) (“DTC”) TO THE COMPANY OR ITS
AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY CERTIFICATE ISSUED
IS REGISTERED IN THE NAME OF CEDE & CO. OR SUCH OTHER NAME AS MAY BE REQUESTED BY AN
AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO CEDE & CO. OR SUCH
OTHER ENTITY AS MAY BE 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.



          (h) Cancellation and/or Adjustment of Global Securities. 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 2.11. 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 Securities Custodian
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 Securities Custodian
at the direction of the Trustee to reflect such increase.




25









 









     (i) General Provisions Relating to Transfers and Exchanges.




          (1) To permit registrations of transfers and exchanges, the Company shall execute and
the Trustee shall authenticate Global Securities and Definitive Securities upon the
Company’s order or at the Registrar’s request.




          (2) No service charge shall be made to a holder of a beneficial interest in a Global
Security or to a Holder of a Definitive Security for any registration of transfer or
exchange, but the Company may require payment of a sum sufficient to cover any transfer tax
or similar governmental charge or other fee required by law and payable in connection
therewith (other than any such transfer taxes or similar governmental charge payable upon
exchange or transfer pursuant to Sections 2.10, 8.05 and 10.06).




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




          (4) None of the Company, the Trustee or the Registrar shall be required (A) to issue,
to register the transfer of or to exchange any Securities during a period beginning at the
opening of business 15 days before the day of mailing of a notice of redemption under
Section 10.03 and ending at the close of business on such day or (B) to register the
transfer of or to exchange any Securities so selected for redemption in whole or in part,
except the unredeemed portion of any Security being redeemed in part.




          (5) Prior to the due presentation for registration of transfer of any Security, the
Company, the Guarantor, the Trustee, the Paying Agent or the Registrar may deem and treat
the Person in whose name a Security is registered as the absolute owner of such Security for
the purpose of receiving any payment on such Security and for all other purposes whatsoever,
whether or not such Security is overdue, and none of the Company, the Guarantor, the
Trustee, the Paying Agent or the Registrar shall be affected by notice to the contrary.




          (6) The Trustee shall authenticate Global Securities and Definitive Securities upon
receipt of a written order of the Company signed by one of its Officers and in accordance
with the other provisions of Section 2.02 to the extent applicable.




          (7) All certifications, certificates and Opinions of Counsel required to be submitted
to the Registrar pursuant to this Section 2.06 to effect a registration of transfer or
exchange may be submitted by facsimile.



     SECTION 2.07. Replacement Securities. If a mutilated Security is surrendered to the Registrar
or if the Holder of a Security claims that the Security has been lost, destroyed or wrongfully
taken, the Company shall issue and the Trustee shall authenticate a replacement Security if the
requirements of Section 8-405 of the Uniform Commercial Code are met, such that the Securityholder
(a) satisfies the Company or the Trustee within a reasonable time after such Securityholder has
notice of such loss, destruction or wrongful taking and the Registrar



26









 







does not register a transfer prior to receiving such notification, (b) makes such request to
the Company or Trustee prior to the Security being acquired by a protected purchaser as defined in
Section 8-303 of the Uniform Commercial Code (a “protected purchaser”) and (c) satisfies any other
reasonable requirements of the Trustee. If required by the Trustee or the Company, such Holder
must furnish an indemnity bond that is sufficient in the judgment of the Trustee and the Company to
protect the Company, the Trustee, any Agent or any authenticating agent from any loss which any of
them may suffer if a Security is replaced. The Company and the Trustee may charge for their
expenses in replacing a Security. If, after the delivery of such replacement Security, a protected
purchaser of the original Security in lieu of which such replacement Security was issued presents
for payment or registration such original Security, the Trustee shall be entitled to recover such
replacement Security from the Person to whom it was delivered or any Person taking therefrom,
except a protected purchaser, and shall be entitled to recover upon the security or indemnity
provided therefor to the extent of any loss, damage, cost or expense incurred by the Trustee or the
Company in connection therewith. Every replacement Security is a contractual obligation of the
Company.



     In case any such mutilated, destroyed, lost or wrongfully taken 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.



     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 wrongfully taken Securities.



     SECTION 2.08. 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
hereunder and those described in this Section 2.08 as not outstanding; provided, however, that in
determining whether the Holders of the requisite principal amount of outstanding Securities are
present at a meeting of Holders of Securities for quorum purposes or have consented to or voted in
favor of any request, demand, authorization, direction, notice, consent, waiver, amendment or
modification hereunder, Securities held for the account of the Company or any of its Affiliates
shall be disregarded and deemed not to be outstanding, except that in determining whether the
Trustee shall be protected in making such a determination or relying upon any such quorum, consent
or vote, only Securities which a Responsible Officer of the Trustee actually knows to be so owned
shall be so disregarded.



     If a Security is replaced pursuant to Section 2.07, it ceases to be outstanding unless the
Trustee receives proof satisfactory to it that the replaced Security is held by a protected
purchaser.



     If the principal amount of any Security is considered paid under Section 3.01, it ceases to be
outstanding and interest on it ceases to accrue.



     SECTION 2.09. [Reserved.]



27









 





     SECTION 2.10. Temporary Securities. Until Definitive Securities are ready for delivery, the
Company may prepare and the Trustee shall authenticate temporary Securities. Temporary Securities
shall be substantially in the form of Definitive Securities, but may have variations that the
Company considers appropriate for temporary Securities. Without unreasonable delay, the Company
shall prepare and the Trustee shall authenticate Definitive Securities in exchange for temporary
Securities. Until so exchanged, temporary Securities shall in all respects be entitled to the same
benefits under this Indenture as Definitive Securities.



     SECTION 2.11. Cancellation. The Company or the Guarantor at any time may deliver Securities
to the Trustee for cancellation. The Registrar and the Paying Agent shall forward to the Trustee
any Securities surrendered to them for registration of transfer, exchange or payment. The Trustee
shall cancel all Securities surrendered for registration of transfer, exchange, payment,
replacement or cancellation. All canceled Securities held by the Trustee shall be disposed of in
accordance with the usual disposal procedures of the Trustee. The Company may not issue new
Securities to replace Securities that have been paid or that have been delivered to the Trustee for
cancellation.



     SECTION 2.12. 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 on the defaulted interest, in each case at the rate provided in the Securities and in the
manner provided in Section 3.01. The Company may pay the defaulted interest to the Persons who are
Holders on a subsequent special record date. At least 15 days before any special record date, the
Company (or the Trustee, in the name of and at the expense of the Company) shall mail to Holders a
notice that states the special record date, the related payment date and the amount of such
interest to be paid.



     SECTION 2.13. Persons Deemed Owners. The Company, the Guarantor, the Trustee, any Agent and
any authenticating agent may treat the Person in whose name any Security is registered as the owner
of such Security for the purpose of receiving payments of principal of or premium, if any,
Additional Amounts, if any, or interest on such Security and for all other purposes. None of the
Company, the Guarantor, the Trustee, any Agent or any authenticating agent shall be affected by any
notice to the contrary.



     SECTION 2.14. CUSIP Numbers. The Company in issuing the Securities may use “CUSIP,” “ISIN” or
similar numbers (if then generally in use), and, if so, the Trustee shall use such numbers in
notices of redemption as a convenience to Holders; provided that any such notice may state that no
representation is made as to the correctness of such numbers either as printed on the Securities or
as contained in any notice of a redemption and that reliance may be placed only on the other
identification numbers printed on the Securities, and any such redemption shall not be affected by
any defect in or omission of such numbers. The Company will promptly notify the Trustee of any
change in any such number.



ARTICLE III

COVENANTS




     SECTION 3.01. Payment of Securities. The Company shall pay the principal of and premium, if
any, Additional Amounts, if any, and interest on the Securities on the dates and in



28









 







the manner provided in the Securities, this Indenture and, in the case of any Additional
Interest, the applicable Registration Rights Agreement. Principal, premium, if any, Additional
Amounts, if any, and interest shall be considered paid on the date due if the Paying Agent, other
than the Company or a Subsidiary of the Company, holds by 11:00 a.m., Eastern time, on that date
money deposited by or on behalf of the Company designated for and sufficient to pay all principal,
premium, if any, Additional Amounts, if any, and interest then due.



     Further, to the extent lawful, the Company shall pay interest (including post-petition
interest in any proceeding under any Bankruptcy Law) on overdue principal, premium, if any,
Additional Amounts, if any, and interest (without regard to any applicable grace period), from time
to time on demand at the rate then in effect on the Securities.



     All references in this Indenture, the Securities or the Guarantees to “interest” shall be
deemed to include Additional Interest unless the context otherwise requires. The Company shall
give the Trustee advance written notice of the amount of any Additional Interest that may be
payable with respect to the Securities.



     SECTION 3.02. Maintenance of Office or Agency. So long as any of the Securities shall remain
outstanding, the Company will, in accordance with Section 2.03, maintain an office or agency (which
may be an office of the Trustee or an affiliate of the Trustee, or the Registrar) in the
continental United States where the Securities may be surrendered for exchange or registration of
transfer as provided in this Indenture, where notices and demands to or upon the Company in respect
to the Securities may be served, and where the Securities may be presented or surrendered for
payment. The Company may also from time to time designate one or more other offices or agencies in
the continental United States where Securities may be presented or surrendered for any and 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 under Section
2.03 to maintain an office or agency in The City of New York where any Securities may be presented
or surrendered for payment. The Company will give to the Trustee prompt written notice of the
location of any such office or agency and of any change of location thereof. In case the Company
shall fail to maintain any such office or agency or shall fail to give such notice of the location
or of any change in the location thereof, such surrenders, presentations and demands may be made
and notices may be served at the designated Corporate Trust Office of the Trustee, and the Company
hereby appoints the Trustee its agent to receive at the aforesaid office all such surrenders,
presentations, notices and demands.



     SECTION 3.03. SEC Reports; Financial Statements.



          (a) The Guarantor covenants and agrees, so long as any Securities are outstanding, to file
with the Trustee copies, within 15 days after the Guarantor is required to file the same with the
SEC, of the annual reports and of the information, documents and other reports (or copies of such
portions of any of the foregoing as the SEC may from time to time by rules and regulations
prescribe) which the Guarantor may be required to file with the SEC pursuant to Section 13 or
Section 15(d) of the Exchange Act; or, if the Guarantor is not required to file information,
documents or reports pursuant to either of such sections, then to file with the Trustee and the
SEC, in accordance with rules and regulations prescribed from time to time by the SEC, such of the
supplementary and periodic information, documents and reports, if any,




29









 







which may be required pursuant to Section 13 of the Exchange Act, in respect of a security
listed and registered on a national securities exchange as may be prescribed from time to time in
such rules and regulations.




     (b) At any time when neither the Guarantor nor the Company is subject to Section 13 or 15(d)
of the Exchange Act and the Securities are not freely transferable under the Securities Act, upon
the request of a Holder, the Guarantor and the Company will promptly furnish or cause to be
furnished the information specified under Rule 144A(d)(4) of the Securities Act to such Holder, or
to a prospective purchaser of a Security designed by such Holder, in order to permit compliance
with Rule 144A.



     SECTION 3.04. Compliance Certificate. The Company and the Guarantor shall deliver to the
Trustee, within 120 days after the end of each fiscal year of the Company, a statement signed by
two Officers of the Company (one of whom shall be the Chief Executive Officer, Chief Financial
Officer or Chief Accounting Officer of the Company) and two Officers of the Guarantor (one of whom
shall be the Chief Executive Officer, Chief Financial Officer or Chief Accounting Officer of the
Guarantor), which statement need not constitute an Officers’ Certificate, complying with TIA
Section 314(a)(4) and stating that in the course of performance by the signing Officers of the
Company and Officers of the Guarantor of their duties as such Officers, they would normally obtain
knowledge of the keeping, observing, performing and fulfilling by the Company and the Guarantor,
respectively, of their obligations under this Indenture, and further stating, as to each such
Officer signing such statement, that to the best of his knowledge, each of the Company and the
Guarantor 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 hereof (or, if a Default or Event of Default shall have occurred, describing all
such Defaults or Events of Default of which such Officer may have knowledge and what action the
Company or the Guarantor, as the case may be, are taking or proposes to take with respect thereto).



     SECTION 3.05. Corporate Existence. Subject to Article IV, each of the Company and the
Guarantor will do or cause to be done all things necessary to preserve and keep in full force and
effect its corporate existence, under the laws of its jurisdiction of incorporation or formation.



     SECTION 3.06. Waiver of Stay, Extension or Usury Laws. Each of the Company and the Guarantor
covenants (to the extent that it may lawfully do so) that it will not at any time insist upon, or
plead, or in any manner whatsoever claim or take the benefit or advantage of, any stay or extension
law or any usury law or other law, which would prohibit or forgive the Company or the Guarantor
from paying all or any portion of the principal of or premium, if any, Additional Amounts, if any,
or interest on the Securities as contemplated herein, wherever enacted, now or at any time
hereafter in force, or which may affect the covenants or the performance of this Indenture; and (to
the extent that they may lawfully do so) each of the Company and the Guarantor hereby expressly
waives all benefit or advantage of any such law, and covenants that it will not hinder, delay or
impede the execution of any power herein granted to the Trustee, but will suffer and permit the
execution of every such power as though no such law had been enacted.



30









 





     SECTION 3.07. Limitation on Liens. So long as any Securities are outstanding, the Guarantor
will not, nor will it permit any Subsidiary to, issue, assume, guarantee or suffer to exist any
debt for money borrowed (“Debt”) if such Debt is secured by a mortgage, pledge, security interest
or lien (a “mortgage” or “mortgages”) upon any properties of the Guarantor or any Subsidiary or
upon any securities or indebtedness of any Subsidiary (whether such properties, securities or
indebtedness is now owned or hereafter acquired) without in any such case effectively providing
that the Securities shall be secured equally and ratably with (or prior to) such Debt, except that
the foregoing restrictions shall not apply to:



          (a) mortgages on any property acquired, constructed or improved by the Guarantor or any
Subsidiary (or mortgages on the securities of a special purpose Subsidiary which holds no material
assets other than the property being acquired, constructed or improved) after the date of this
Indenture which are created within 360 days after such acquisition (or in the case of property
constructed or improved, after the completion and commencement of commercial operation of such
property, whichever is later) to secure or provide for the payment of the purchase price or cost
thereof; provided that in the case of such construction or improvement the mortgages shall not
apply to any property owned by the Guarantor or any Subsidiary before such construction or
improvement other than (1) unimproved real property on which the property so constructed, or the
improvement, is located or (2) personal property which is so improved;




          (b) mortgages existing on the Issue Date, existing mortgages on property acquired (including
mortgages on any property acquired from a Person which is consolidated with or merged with or into
the Guarantor or a Subsidiary) or mortgages outstanding at the time any corporation, partnership or
other entity becomes a Subsidiary; provided that such mortgages shall only apply to property owned
by such corporation, partnership or other entity at the time it becomes a Subsidiary or that is
acquired thereafter other than from the Guarantor or another Subsidiary;




          (c) mortgages in favor of the Guarantor or any Subsidiary;




          (d) mortgages in favor of domestic or foreign governmental bodies to secure advances or other
payments pursuant to any contract or statute or to secure indebtedness incurred to finance the
purchase price or cost of constructing or improving the property subject to such mortgages,
including mortgages to secure Debt of the pollution control or industrial revenue bond type;




          (e) mortgages consisting of pledges or deposits by the Guarantor or any Subsidiary under
workers’ compensation laws, unemployment insurance laws or similar legislation, or good faith
deposits in connection with bids, tenders, contracts (other than for the payment of Debt) or leases
to which the Guarantor or any Subsidiary is a party, or deposits to secure public or statutory
obligations of the Guarantor or any Subsidiary or deposits of cash or United States government
bonds to secure surety or appeal bonds to which it is a party, or deposits as security for
contested taxes or import or customs duties or for the payment of rent, in each case incurred in
the ordinary course of business;




31









 








          (f) mortgages imposed by law, including carriers’, warehousemen’s, repairman’s, landlords’ and
mechanics’ liens, in each case for sums not yet due or being contested in good faith by appropriate
proceedings if a reserve or other appropriate provisions, if any, as shall be required by GAAP
shall have been made in respect thereof;




          (g) mortgages for taxes, assessments or other governmental charges that are not yet delinquent
or which are being contested in good faith by appropriate proceedings provided appropriate reserves
required pursuant to GAAP have been made in respect thereof;




          (h) mortgages in favor of issuers of surety or performance bonds or letters of credit or
bankers’ acceptances issued pursuant to the request of and for the account of the Guarantor or any
Subsidiary in the ordinary course of its business;




          (i) mortgages consisting of encumbrances, easements or reservations of, or rights of others
for, licenses, rights of way, sewers, electric lines, telegraph and telephone lines and other
similar purposes, or mortgages consisting of zoning or other restrictions as to the use of real
properties or mortgages incidental to the conduct of the business of the Guarantor or a Subsidiary
or to the ownership of its properties which do not materially adversely affect the value of said
properties or materially impair their use in the operation of the business of the Guarantor or a
Subsidiary;




          (j) mortgages arising by virtue of any statutory or common law provisions relating to bankers’
liens, rights of set-off or similar rights and remedies as to deposit accounts or other funds
maintained with a depository institution; provided that:





     (i) such deposit account is not a dedicated cash collateral account and is not
subject to restrictions against access by the Guarantor or any Subsidiary in excess
of those set forth by regulations promulgated by the Federal Reserve Board; and




     (ii) such deposit account is not intended by the Guarantor or any Subsidiary to
provide collateral to the depository institution;



          (k) mortgages arising from Uniform Commercial Code financing statement filings regarding
operating leases the Guarantor and its Subsidiaries enter into in the ordinary course of business;




          (l) any mortgage over goods (or any documents relating thereto) arising either in favor of a
bank issuing a form of documentary credit in connection with the purchase of such goods or by way
of retention of title by the supplier of such goods where such goods are supplied on credit,
subject to such retention of title, and in both cases where such goods are acquired in the ordinary
course of business;




          (m) any mortgage pursuant to any order of attachment, execution, enforcement, distraint or
similar legal process arising in connection with court proceedings; provided that such process is
effectively stayed, discharged or otherwise set aside within 30 days;




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          (n) any lease, sublease and sublicense granted to any third party constituting a mortgage and
any mortgage pursuant to farm-in and farm-out agreements, operating agreements, development
agreements and any other similar arrangements, which are customary in the oil and gas industry or
in the ordinary course of business of the Guarantor or any Subsidiary; or




          (o) any extension, renewal or replacement (or successive extensions, renewals or
replacements), in whole or in part, of any mortgage referred to in the foregoing clauses (a)
through (n), inclusive; provided that the principal amount of Debt secured thereby shall not exceed
the principal amount of Debt so secured at the time of such extension, renewal or replacement, and
that such extension, renewal or replacement shall be limited to all or a part of the property which
secured the mortgage so extended, renewed or replaced (plus improvements in such property).




     In addition to the foregoing, the Guarantor and any Subsidiary may, without securing the
Securities, issue, assume or guarantee secured Debt that, with certain other Debt described in the
following sentence, does not exceed 10% of Consolidated Net Tangible Assets. The other Debt to be
aggregated for purposes of this exception is all Attributable Debt in respect of Sale and
Lease-Back Transactions of the Guarantor and its Subsidiaries under the exception in clause (e)(2)
of Section 3.09 existing at such time.



     SECTION 3.08. Payment of Additional Amounts. Unless otherwise required by Bermudan law,
neither the Company nor the Guarantor will deduct or withhold from payments made with respect to
the Securities and the Guarantees on account of any present or future Taxes. In the event that
either the Company or the Guarantor is required to withhold or deduct on account of any Taxes due
from any payment made under or with respect to the Securities or the Guarantees, as the case may
be, the Company or the Guarantor, as the case may be, will pay such additional amounts (“Additional
Amounts”) as may be necessary so that the net amount received by each Holder of Securities will
equal the amount that the Holder would have received if the Taxes had not been required to be
withheld or deducted; provided that no Additional Amounts will be payable with respect to a payment
made to a Holder (an “Excluded Holder”) to the extent: (i) that any Taxes would not have been so
imposed but for the existence of any present or former connection between the Holder and Bermuda,
other than the mere receipt of the payment, acquisition, ownership or disposition of such
Securities or the exercise or enforcement of rights under the Securities, the Guarantees or this
Indenture; (ii) of any estate, inheritance, gift, sales, transfer or personal property Taxes
imposed with respect to the Securities or any other Taxes payable other than by withholding or
deduction, except as described below or as otherwise provided in this Indenture; (iii) that any
such Taxes would not have been imposed but for the presentation of the Securities, where
presentation is required, for payment on a date more than 30 days after the date on which the
payment became due and payable or the date on which payment thereof is duly provided for, whichever
is later, except to the extent that the beneficiary or Holder thereof would have been entitled to
Additional Amounts had the Securities been presented for payment on any date during such 30-day
period; or (iv) that the Holder would not be liable or subject to such withholding or deduction of
Taxes but for the failure to make a valid declaration of non-residence or other similar claim for
exemption, if: (a) the making of the declaration or claim is required or imposed by statute,
treaty, regulation, ruling or administrative practice of the relevant taxing authority as a
precondition to an exemption from, or reduction in, the relevant Taxes; and (b) at least 60 days
prior to the first payment with respect to which the Company or



33









 







the Guarantor shall apply this clause (iv), the Company or the Guarantor shall have notified
all Holders of the Securities in writing that they shall be required to provide this declaration or
claim. The Company and the Guarantor shall also (i) withhold or deduct such Taxes as required; (ii)
remit the full amount of Taxes deducted or withheld to the relevant taxing authority in accordance
with all applicable laws; (iii) use reasonable efforts to obtain from each relevant taxing
authority imposing the Taxes certified copies of tax receipts evidencing the payment of any Taxes
deducted or withheld; and (iv) upon request, make available to the Holders of the Securities,
within 60 days after the date the payment of any Taxes deducted or withheld is due pursuant to
applicable law, certified copies of tax receipts evidencing such payment by the Company or the
Guarantor and, notwithstanding the Company’s or the Guarantor’s efforts to obtain the receipts, if
the same are not obtainable, other evidence of such payments.



     In addition, the Company or the Guarantor will pay any stamp, issue, registration, documentary
or other similar taxes and duties, including interest, penalties and additional amounts with
respect thereto, payable in Bermuda or the United States, or any political subdivision or taxing
authority of or in the foregoing with respect to the creation, issue, offering, enforcement,
redemption or retirement of the Securities or Guarantees.



     At least 30 days prior to each date on which any payment under or with respect to the
Securities is due and payable, if the Company or the Guarantor becomes obligated to pay Additional
Amounts with respect to such payment, the Company (or in respect of the Guarantees, the Guarantor)
shall deliver to the Trustee an Officers’ Certificate stating the fact that such Additional Amounts
will be payable, and the amounts so payable and will set forth such other information as is
necessary to enable the Trustee to pay such Additional Amounts to the Holders on the payment date.
Whenever in this Indenture there is mentioned, in any context, the payment of principal of and
premium, if any, Additional Amounts, if any, or interest (including defaulted interest) or any
other amount payable on or with respect to any of the Securities, such mention shall be deemed to
include mention of the payment of Additional Amounts provided for in this Section 3.08 to the
extent that, in such context, Additional Amounts are, were or would be payable in respect thereof
pursuant to the provisions of this Section 3.08 and express mention of the payment of Additional
Amounts in those provisions hereof shall not be construed as excluding Additional Amounts in those
provisions hereof where such express mention is not made (if applicable).



     If payments with respect of the Securities or the Guarantees become subject generally to the
taxing jurisdiction of any Territory or any political subdivision or taxing authority thereof or
therein having power to tax, other than or in addition to Bermuda or the United States or any
political subdivision or taxing authority therein or thereof having power to tax, immediately upon
becoming aware thereof the Company shall notify the Trustee of such event, and thereupon the
Company or the Guarantor, as the case may be, shall be obligated to pay Additional Amounts in
respect thereof on terms corresponding to the terms of the foregoing provisions of this Section
3.08 with the substitution for (or, as the case may be, in addition to) the references herein to
Bermuda or any political subdivision or authority therein or thereof having power to tax of
references to that other or additional Territory or any political subdivision or authority therein
or thereof having power to tax to whose taxing jurisdiction such payments shall have become subject
as aforesaid. The term “Territory” means for this purpose any jurisdiction in which the



34









 







Company or the Guarantor, as the case may be, is incorporated or in which it has its place of
central management or central control.



     The obligations of the Company and the Guarantor under this Section 3.08 shall survive the
termination of this Indenture and the payment of all amounts under or with respect to this
Indenture and the Securities.



     SECTION 3.09. Limitations on Sale and Lease-Back Transactions. So long as any Securities are
outstanding, the Guarantor will not, nor will it permit any Subsidiary to, enter into any Sale and
Lease-Back Transaction, other than any Sale and Lease-Back Transaction:



          (a) entered into within 360 days of the later of the acquisition or placing into service of
the property subject thereto by the Guarantor or such Subsidiary;




          (b) involving a lease of less than five years;




          (c) entered into in connection with an industrial revenue bond or pollution control financing;




          (d) between the Guarantor and/or one or more Subsidiaries;




          (e) as to which the Guarantor or such Subsidiary would be entitled to incur Debt secured by a
mortgage on the property to be leased in an amount equal to the Attributable Debt with respect to
such Sale and Lease-Back Transaction without equally and ratably securing the Securities (1) under
clauses (a) through (n) of Section 3.07 or (2) under the last paragraph of Section 3.07; or




          (f) as to which the Guarantor will apply an amount equal to the net proceeds from the sale of
the property so leased to (1) the retirement (other than any mandatory retirement), within 360 days
of the effective date of any such Sale and Lease-Back Transaction, of Securities or of Funded Debt
of the Guarantor or a Subsidiary or (2) the purchase or construction of other property, provided
that such property is owned by the Guarantor or a Subsidiary free and clear of all mortgages.




     SECTION 3.10. Change of Control Offer. Upon the occurrence of a Change of Control Triggering
Event, each Holder shall have the right to require the Company to purchase all or any part (equal
to $2,000 or an integral multiple of $1,000 in excess thereof) of such Holder’s Securities at a
purchase price in cash equal to 101% of the principal amount thereof, plus accrued and unpaid
interest, if any, up to, but not including, the date of purchase; provided, however, that if such
date of purchase is after the taking of a record of the Holders on a record date and on or prior to
the related Interest Payment Date, the accrued and unpaid interest shall be payable to the Person
in whose name the repurchased Securities are registered on such record date. Notwithstanding the
foregoing, the Company shall have no obligation to repurchase any Securities pursuant to this
Section 3.10 to the extent that the Company shall have exercised its right to redeem the Securities
pursuant to Section 10.07.



35









 





     For purposes of this Section 3.10, the term “Change of Control” means the occurrence of any
one of the following:



          (a) the sale, lease, transfer, conveyance or other disposition (other than by way of merger,
amalgamation or consolidation), in one or a series of related transactions, of all or substantially
all of the assets of the Guarantor and the Subsidiaries taken as a whole to any “person” (as that
term is used in Section 13(d)(3) of the Exchange Act) other than to the Guarantor or one or more of
the Subsidiaries or a combination thereof or a Person controlled by the Guarantor or one or more of
the Subsidiaries or a combination thereof;




          (b) the consummation of any transaction (including without limitation, any merger,
amalgamation or consolidation) the result of which is that any “person” (as that term is used in
Section 13(d)(3) of the Exchange Act) (other than any Subsidiary) becomes the “beneficial owner”
(as defined in Rules 13d-3 and 13d-5 under the Exchange Act), directly or indirectly, of more than
50% of the outstanding Voting Stock of the Guarantor, measured by voting power rather than number
of shares (excluding a redomestication of the Guarantor); or




          (c) the first day on which the majority of the members of the Board of Directors of the
Guarantor cease to be Continuing Directors.



Notwithstanding the foregoing, a transaction shall not be deemed to involve a “Change of Control”
under clause (b) above if (i) the Guarantor becomes a direct or indirect wholly owned Subsidiary of
a holding company and (ii)(A) the direct or indirect holders of the Voting Stock of such holding
company immediately following such transaction are substantially the same as the holders of the
Voting Stock of the Guarantor immediately prior to such transaction or (B) immediately following
such transaction no “person” (as that term is used in Section 13(d)(3) of the Exchange Act) (other
than a holding company satisfying the requirements of this sentence) is the “beneficial owner” (as
defined in Rules 13d-3 and 13d-5 under the Exchange Act), directly or indirectly, of more than 50%
of the outstanding Voting Stock of such holding company, measured by voting power rather than
number of shares.




     For purposes of this Section 3.10, the term “Change of Control Triggering Event” means the
ratings of the Securities are lowered by at least two of the three Rating Agencies and the
Securities cease to be rated Investment Grade by at least two of the three Rating Agencies in any
case on any date during the period (the “Trigger Period”) commencing on the date of the first
public announcement by the Guarantor of any Change of Control (or pending Change of Control) and
ending 60 days following consummation of such Change of Control (which 60-day period will be
extended for so long as the rating of the notes is under publicly announced consideration for a
possible downgrade by any of the Rating Agencies). Notwithstanding the foregoing, no Change of
Control will be deemed to have occurred in connection with any particular Change of Control unless
and until such Change of Control has actually been consummated.



     Within 60 days following the date upon which the Change of Control Triggering Event has
occurred, or at the Company’s option, prior to any Change of Control but after the public
announcement of the transaction that constitutes or may constitute the Change of Control, except to
the extent that the Company shall have exercised its right to redeem the Securities pursuant to
Section 10.07, the Company shall mail a notice (a “Change of Control Offer”) to each Holder



36









 







with a copy to the Trustee, which notice will govern the terms of the Change of Control Offer,
stating:




          (1) that a Change of Control Triggering Event has occurred and that such Holder has the
right to require us to purchase such Holder’s Securities at a purchase price in cash equal
to 101% of the principal amount thereof, plus accrued and unpaid interest, if any, to the
date of purchase (subject to the right of holders of record on a record date to receive
interest on the relevant Interest Payment Date as provided in the first paragraph of this
Section 3.10);




          (2) the circumstances regarding such Change of Control Triggering Event;




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




          (4) the instructions that a Holder must follow in order to have its Securities
purchased.



     Holders of Securities electing to have Securities purchased pursuant to a Change of Control
Offer must surrender their Securities, with the form entitled “Option of Holder to Elect Purchase”
on the reverse of the Security completed, to the Paying Agent at the address specified in the
notice, or transfer their Securities to the Paying Agent by book-entry transfer pursuant to the
Applicable Procedures, prior to the close of business on the third Business Day prior to the Change
of Control Payment Date.



     On the Change of Control Payment Date, all Securities purchased by the Company under this
Section shall be delivered to the Trustee for cancellation, and the Company shall pay the purchase
price plus accrued and unpaid interest to the Holders entitled thereto.



     The Company may make a Change of Control Offer in advance of a Change of Control and the
Change of Control Payment Date, and its Change of Control Offer may be conditioned upon such
Change of Control, if a definitive agreement is in place for the Change of Control at the time of
making the Change of Control Offer.



     The Company shall have no obligation to make a Change of Control Offer if a third party makes
such an offer in the manner, at the times and otherwise in compliance with the requirements of this
Section 3.10 for such an offer made by the Company, and such third party purchases all Securities
properly tendered and not withdrawn under its offer.



     The Company shall comply, to the extent applicable, with the requirements of Section 14(e) of
the Exchange Act and any other securities laws or regulations in connection with the repurchase of
Securities pursuant to a Change of Control Offer. To the extent that the provisions of any
securities laws or regulations conflict with this Section 3.10, the Company shall comply with the
applicable securities laws and regulations and will not be deemed to have breached its obligations
by virtue thereof.



37









 





ARTICLE IV

CONSOLIDATION, MERGER AND SALE




     SECTION 4.01. Limitation on Mergers and Consolidations. The Company shall not consolidate or
amalgamate with or merge into any other Person or convey, transfer or lease its properties and
assets substantially as an entirety to any Person unless:




     (i) the Person formed by such consolidation or amalgamation or into which the
Company is merged or the Person which acquires by conveyance or transfer, or which
leases, the properties and assets of the Company substantially as an entirety shall
be a Person organized and existing under the laws of the United States of America,
any State thereof or the District of Columbia, and shall expressly assume, by an
indenture supplemental hereto, executed and delivered to the Trustee, in form
satisfactory to the Trustee, the due and punctual payment of the principal of and
interest on all the Securities and the performance of every covenant of this
Indenture on the part of the Company to be performed;




     (ii) immediately after giving effect to such transaction, no Default or Event
of Default shall have occurred and be continuing; and




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



     The Guarantor shall not consolidate or amalgamate with or merge into any other Person or
convey, transfer or lease its properties and assets substantially as an entirety to any Person
unless:




     (i) the Person formed by such consolidation or amalgamation or into which the
Guarantor is merged or the Person which acquires by conveyance or transfer, or which
leases, the properties and assets of the Guarantor substantially as an entirety
shall expressly assume, by an indenture supplemental hereto, executed and delivered
to the Trustee, in form satisfactory to the Trustee, the due and punctual payment of
all obligations in respect of the Guarantees and the performance of every covenant
of this Indenture on the part of the Guarantor to be performed;




     (ii) immediately after giving effect to such transaction, no Default or Event
of Default shall have occurred and be continuing; and




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



38









 





     SECTION 4.02. Successors Substituted. Upon any consolidation or amalgamation of the Company
or the Guarantor with, or merger of the Company or the Guarantor into, any other Person, or any
conveyance, transfer or lease of the properties and assets of the Company or the Guarantor
substantially as an entirety in accordance with Section 4.01, the successor Person formed by such
consolidation or amalgamation or into which the Company or the Guarantor is merged or to which such
conveyance, transfer or lease is made shall succeed to, and be substituted for, and may exercise
every right and power of, the Company or the Guarantor, as the case may be, under this Indenture
with the same effect as if such successor Person had been named as the Company or the Guarantor, as
the case may be, herein, and thereafter, except in the case of a lease to another Person, the
predecessor Person shall be relieved of all obligations and covenants under this Indenture and the
Securities.



ARTICLE V

DEFAULTS AND REMEDIES




     SECTION 5.01. Events of Default. “Event of Default” means any one of the following events
(whatever the reason for such Event of Default and whether it shall be voluntary or involuntary or
be effected by operation of law or pursuant to any judgment, decree or order of any court or any
order, rule or regulation of any administrative or governmental body):




     (i) default in the payment of the principal of or premium, if any, on any
Security at its Maturity, and continuance of such default for a period of 10 days;
or




     (ii) default in the payment of interest or Additional Amounts, if any, upon any
Security when they become due and payable, and continuance of such default for a
period of 30 days; or




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




     (iv) the entry by a court having jurisdiction in the premises of (A) a decree
or order for relief in respect of the Company or the Guarantor in an involuntary
case or proceeding under any applicable Bankruptcy Law or (B) a decree or order
adjudging the Company or the Guarantor a bankrupt or insolvent, or approving as
properly filed a petition seeking reorganization, arrangement, adjustment or
composition of or in respect of the Company or the Guarantor under any applicable
Bankruptcy Law, or appointing a custodian, receiver, receiver and manager, interim
receiver, administrator, monitor, liquidator,



39









 






assignee, trustee, sequestrator or other similar official of the Company or the
Guarantor or of any substantial part of the property of the Company or the
Guarantor, or ordering the winding up or liquidation of the affairs of the Company
or the Guarantor, and the continuance of any such decree or order for relief or any
such other decree or order unstayed and in effect for a period of 90 consecutive
days;




     (v) the commencement by the Company or the Guarantor of a voluntary case or
proceeding under any applicable Bankruptcy Law or of any other case or proceeding to
be adjudicated a bankrupt or insolvent, or the consent by either of them to the
entry of a decree or order for relief in respect of the Company or the Guarantor in
an involuntary case or proceeding under any applicable Bankruptcy Law or to the
commencement of any bankruptcy or insolvency case or proceeding against any of them,
or the filing by any of them of a petition or answer or consent seeking
reorganization or relief under any applicable Bankruptcy Law, or the consent by any
of them to the filing of such petition or to the appointment of or taking possession
by a custodian, receiver, receiver and manager, interim receiver, administrator,
monitor, liquidator, assignee, trustee, sequestrator or similar official of the
Company or the Guarantor or of any substantial part of the property of the Company
or the Guarantor, or the making by either of them of an assignment for the benefit
of creditors, or the admission by either of them in writing of its inability to pay
its debts generally as they become due, or the taking of corporate action by the
Company or the Guarantor in furtherance of any such action; or




     (vi) the Guarantees cease to be in full force and effect or become
unenforceable or invalid or are declared null and void (other than in accordance
with the terms of such Guarantees) or the Guarantor denies or disaffirms its
obligations under such Guarantees.



     The Trustee shall not be deemed to know of a Default or Event of Default unless a Responsible
Officer at the Corporate Trust Office of the Trustee has actual knowledge of such Default or Event
of Default or the Trustee receives written notice at the Corporate Trust Office of the Trustee of
such Default or Event of Default with specific reference to such Default, the Securities and this
Indenture.



     When a Default is cured, or when an Event of Default is deemed cured pursuant to Section 5.04,
such Default, or Event of Default, as the case may be, ceases.



     SECTION 5.02. Acceleration. If an Event of Default (other than an Event of Default specified
in clause (iv) or (v) of Section 5.01) occurs and is continuing, the Trustee by notice to the
Company and the Guarantor, or by the Holders of at least 25% in aggregate principal amount of the
then outstanding Securities by written notice to the Company, the Guarantor and the Trustee, may
declare the principal of, premium, if any, Additional Amounts, if any, and accrued and unpaid
interest on all then outstanding Securities to be due and payable immediately. Upon any such
declaration the amounts due and payable on the Securities, as determined in accordance with the
next succeeding paragraph, shall be due and payable immediately. If an Event of



40









 







Default specified in clause (iv) or (v) of Section 5.01 occurs, the principal of, premium, if
any, Additional Amounts, if any, and interest on all Securities then outstanding shall ipso facto
become and be immediately due and payable without any declaration, notice or other act on the part
of the Trustee or any Holder.



     At any time after such an acceleration has occurred and before a judgment for payment of the
money due has been obtained by the Trustee as hereinafter in this Article V provided, the Holders
of a majority in aggregate principal amount of the outstanding Securities, by written notice to the
Company, the Guarantor and the Trustee, may rescind and annul such acceleration and its
consequences if:




          (1) the Company or the Guarantor has paid or deposited with the Trustee a sum
sufficient to pay:




     (A) the principal of and premium, if any, on any Securities which have become
due otherwise than by such declaration of acceleration and Additional Amounts, if
any, and any interest thereon at the rate or rates prescribed therefor in such
Securities or in this Indenture,




     (B) all overdue interest and Additional Amounts, if any, on all Securities,




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




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




          (2) all Events of Default, other than the non-payment of the principal of Securities
which have become due solely by such declaration of acceleration, have been cured or waived
as provided in Section 5.04.



     No such rescission shall affect any subsequent Event of Default or impair any right consequent
thereon.



     If the Maturity of the Securities is accelerated pursuant to this Section 5.02, 100% of the
principal amount thereof and premium, if any, shall become due and payable plus Additional Amounts,
if any, and accrued and unpaid interest to the date of payment.



     SECTION 5.03. Other Remedies. If an Event of Default occurs and is continuing, the Trustee
may pursue any available remedy to collect the payment of principal of, premium, if any, Additional
Amounts, if any, or interest on the Securities or to enforce the performance of any provision of
the Securities, the Guarantees or this Indenture.



     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



41









 







Holder 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.



     SECTION 5.04. Waiver of Existing Defaults. Subject to Sections 5.07 and 8.02, the Holders of
a majority in aggregate principal amount of the Securities then outstanding by notice to the
Trustee may waive an existing Default or Event of Default and its consequences (including waivers
obtained in connection with a tender offer or exchange offer for the Securities or a solicitation
of consents in respect of the Securities, provided that in each case such offer or solicitation is
made to all Holders of the Securities then outstanding on equal terms), except (1) a continuing
Default or Event of Default in the payment of the principal of or premium, if any, Additional
Amounts, if any, or interest on the Securities or (2) a continuing Default in respect of a
provision that under Section 8.02 cannot be amended without the consent of each Holder affected.
Upon any such waiver, such Default shall cease to exist, and any Event of Default arising therefrom
shall be deemed to have been cured for every purpose of this Indenture; but no such waiver shall
extend to any subsequent or other Default or impair any right consequent thereon.



     SECTION 5.05. Control by Majority. The Holders of a majority in aggregate principal amount of
the Securities then outstanding may direct the time, method and place of conducting any proceeding
for any remedy available to the Trustee or exercising any trust or power conferred on it hereunder.
The Trustee, however, may refuse to follow any direction that conflicts with applicable law or this
Indenture that the Trustee determines may be unduly prejudicial to the rights of other Holders, or
that may involve the Trustee in personal liability; provided, however, that the Trustee may take
any other action deemed proper by the Trustee that is not inconsistent with such direction. Prior
to taking any action hereunder, the Trustee shall be entitled to receive reasonable indemnification
satisfactory to it against all losses and expenses caused by taking or not taking such action
subject to the Trustee’s duty to act with the required standard of care during a default.



     SECTION 5.06. Limitations on Suits. Subject to Section 5.07, a Holder may pursue a remedy
with respect to this Indenture (including the Guarantees) or the Securities only if:




          (i) such Holder gives to the Trustee written notice of a continuing Event of
Default;




          (ii) the Holders of at least 25% in aggregate principal amount of the
Securities then outstanding make a written request to the Trustee to pursue the
remedy;




          (iii) such Holder or Holders furnish to the Trustee reasonable indemnity
satisfactory to the Trustee against any loss, liability or expense;




          (iv) the Trustee does not comply with the request within 60 days after receipt
of the request and the furnishing of indemnity; and



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          (v) during such 60-day period the Holders of a majority in aggregate principal
amount of the Securities then outstanding do not give the Trustee a direction
inconsistent with the request.



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



     SECTION 5.07. Rights of Holders to Receive Payment. Notwithstanding any other provision of
this Indenture, the right of any Holder of a Security to receive payment of principal of and
premium, if any, Additional Amounts, if any, and interest on the Security, on or after the
respective due dates expressed in the Security, or to bring suit against the Company or the
Guarantor for the enforcement of any such payment on or after such respective dates, is absolute
and unconditional and shall not be impaired or affected without the consent of such Holder.



     SECTION 5.08. Collection Suit by Trustee. If an Event of Default specified in clause (i) or
(ii) of Section 5.01 occurs and is continuing, the Trustee is authorized to recover judgment in its
own name and as trustee of an express trust against the Company and the Guarantor (i) for the
amount of principal of and premium, if any, Additional Amounts, if any, and interest remaining
unpaid on any Securities and (ii) interest on overdue principal, premium, if any, Additional
Amounts, if any, and, to the extent lawful, interest on overdue interest, 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 5.09. Trustee May File Proofs of Claim. The Trustee is authorized to file such proofs
of claim and other papers or documents and to take such actions, including participating as a
member, voting or otherwise, of any committee of creditors, 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
allowed in any judicial proceedings relative to the Company and the Guarantor or their respective
creditors or properties 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 6.07. 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 6.07 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 which the Holders of the Securities may be
entitled to 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 or the rights of any Holder
thereof, or to authorize the Trustee to vote in respect of the claim of any Holder in any such
proceeding.



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     SECTION 5.10. Priorities. If the Trustee collects any money pursuant to this Article V, it
shall pay out the money in the following order:



     First: to the Trustee for amounts due under Section 6.07;




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




Third: to the Company and the Guarantor.



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



     SECTION 5.11. 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 5.11 does not apply to a suit by the Trustee, a suit by a Holder pursuant to Section 5.07,
or a suit by a Holder or Holders of more than 10% in aggregate principal amount of the Securities
then outstanding.



ARTICLE VI

TRUSTEE




     SECTION 6.01. 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, and use the same degree of care and skill in
such exercise, as a prudent man would exercise or use under the circumstances in the conduct of his
own affairs.




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





     (i) the Trustee need perform only those duties that are specifically set forth
in this Indenture and no others, and no implied covenants or obligations shall be
read into this Indenture against the Trustee; and




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



44









 






examine such certificates and opinions to determine whether or not, on their
face, they appear to conform to the requirements of this Indenture.



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





            (i) this paragraph does not limit the effect of paragraph (b) of this Section
6.01;




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




            (iii) the Trustee shall not be liable with respect to any action it takes or
omits to take in good faith in accordance with a direction received by it pursuant
to Section 5.05.



          (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 6.01.




          (e) No provision of this Indenture shall require the Trustee to expend or risk its own funds
or incur any liability. The Trustee may refuse to perform any duty or exercise any right or power
unless it receives indemnity satisfactory to it against any loss, liability or expense.




          (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. All money received by the Trustee
shall, until applied as herein provided, be held in trust for the payment of the principal of and
premium, if any, Additional Amounts, if any, and interest on the Securities.




     SECTION 6.02. Rights of Trustee.



          (a) The Trustee may rely conclusively on any resolution, certificate, statement, direction,
consent, order, bond, note or other paper or 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 any such paper or document.




          (b) Before the Trustee acts or refrains from acting, it may require an Officers’ Certificate
or an Opinion of Counsel or both. The Trustee shall not be liable for any action it takes or omits
to take in good faith in reliance on such Officers’ Certificate or Opinion of Counsel. The Trustee
may consult with counsel and the advice of such counsel or any Opinion of Counsel shall be full and
complete authorization and protection in respect of any action taken, suffered or omitted by it
hereunder in good faith and in reliance thereon.




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




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          (d) The Trustee shall not be liable for any action it takes or omits to take in good faith
which it believes to be authorized or within its 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 or the Guarantor shall be sufficient if signed by an Officer of the
Company or the Guarantor, as the case may be.




          (f) The Trustee is not required to give any bond or surety with respect to the performance of
its duties or the exercise of its powers under this Indenture.




          (g) In the event the Trustee receives inconsistent or conflicting requests and indemnity from
two or more groups of Holders of Securities, each representing less than a majority in aggregate
principal amount of the outstanding Securities, pursuant to the provisions of this Indenture, the
Trustee may determine what action, if any, shall be taken.




          (h) The Trustee’s immunities and protections from liability and its right to indemnification
in connection with the performance of its duties under this Indenture shall extend and be
enforceable by the Trustee in each of its capacities hereunder and shall extend to the Trustee’s
officers, directors, agents, attorneys and employees. Such immunities and protections and right to
indemnity, together with the Trustee’s right to compensation, shall survive the Trustee’s
resignation or removal, the discharge of this Indenture and final payment of the Securities.




          (i) The permissive right of the Trustee to take the actions permitted by this Indenture shall
not be construed as an obligation or duty to do so.




          (j) Except for information provided by the Trustee concerning the Trustee, the Trustee shall
have no responsibility for any information in the Offering Memorandum or other disclosure material
distributed with respect to the Securities, and the Trustee shall have no responsibility for
compliance with any U.S. Federal or State securities or employee benefit plan laws in connection
with the Securities.




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




     SECTION 6.03. 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, the
Guarantor or any of their Affiliates with the same rights it would have if it were not the Trustee.
Any Agent may do the same with like rights. However, the Trustee is subject to Sections 6.10 and
6.11.



     SECTION 6.04. Trustee’s Disclaimer. The Trustee makes no representation as to the validity or
adequacy of this Indenture, the Securities or the Guarantees, it shall not be



46









 







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 hereof, 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
other than its certificate of authentication.



     SECTION 6.05. Notice of Defaults. If a Default or Event of Default occurs and is continuing
and it is actually known to a Responsible Officer of the Trustee, the Trustee shall mail to Holders
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 premium, if any, Additional Amounts, if
any, or interest on any Security, the Trustee may withhold the notice if and so long as a committee
of its Responsible Officers in good faith determines that withholding the notice is in the
interests of Holders.



     SECTION 6.06. Reports by Trustee to Holders. Within 60 days after May 15 of each year,
beginning with May 15, 2008, the Trustee shall mail to Holders a brief report dated as of May 15 of
such year that complies with TIA Section 313(a); provided, however, that if no event described in
TIA Section 313(a) has occurred within the 12 months preceding the reporting date, no report need
be transmitted. The Trustee also shall comply with TIA Section 313(b). The Trustee shall also
transmit by mail all reports as required by TIA Sections 313(c) and 313(d).



     A copy of each report at the time of its mailing to Holders shall be filed with the SEC and
each securities exchange, if any, on which the Securities are listed. The Company shall notify the
Trustee if and when the Securities are listed on any securities exchange.



     SECTION 6.07. Compensation and Indemnity. The Company and the Guarantor jointly and severally
agree to pay to the Trustee from time to time such compensation as agreed to by the Company, the
Guarantor and the Trustee, for its acceptance of this Indenture and its services hereunder. The
Trustee’s compensation shall not be limited by any law on compensation of a trustee of an express
trust. The Company and the Guarantor jointly and severally agree to reimburse the Trustee upon
request for all reasonable disbursements, advances and expenses incurred by it. Such expenses shall
include the reasonable compensation, disbursements and expenses of the Trustee’s agents and
counsel.



     The Company and the Guarantor jointly and severally agree to indemnify the Trustee or any
predecessor Trustee and their agents, employees, stockholders, officers and directors for and to
hold them harmless against any and all loss, liability, damage, claim, or expense (including
reasonable fees and expenses of counsel and taxes, other than taxes based upon, measured by or
determined by the income of the Trustee) incurred by it arising out of or in connection with this
Indenture or the administration of this trust, including the costs and expenses of enforcing this
Indenture against the Company and of defending itself against any claim (whether asserted by the
Company, the Guarantor, any Holder or any other Person), except as set forth in the next paragraph.
The Trustee shall notify the Company and the Guarantor promptly of any claim for which it may seek
indemnity; however, failure to give such notice shall not relieve the Company or the Guarantor of
their obligations. The Company shall defend the claim and the Trustee shall cooperate in the
defense. The Trustee may have separate counsel, and the Company and the Guarantor shall pay the
reasonable fees and expenses of such counsel. The Company need not



47









 







pay for any settlement made without its consent, which consent shall not be unreasonably
withheld.



     Neither the Company nor the Guarantor shall be obligated to reimburse any expense or indemnify
against any loss or liability incurred by the Trustee through negligence or bad faith.



     To secure the payment obligations of the Company and the Guarantor in this Section 6.07, the
Trustee shall have a lien prior to the Securities on all money or property held or collected by the
Trustee, except that held in trust to pay principal of and premium, if any, and Additional Amounts,
if any, and interest on the Securities. Such lien shall survive the satisfaction and discharge of
this Indenture.



     When the Trustee incurs expenses or renders services after an Event of Default specified in
Section 5.01(iv) or (v) occurs, the expenses and the compensation for the services are intended to
constitute expenses of administration under any Bankruptcy Law.



     SECTION 6.08. 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 6.08.



     The Trustee may resign and be discharged from the trust hereby created by so notifying the
Company and the Guarantor. The Holders of a majority in aggregate principal amount of the then
outstanding Securities may remove the Trustee by so notifying the Trustee and the Company. The
Company may remove the Trustee if:




          (i) the Trustee fails to comply with Section 6.10;




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




          (iii) a Custodian or public officer takes charge of the Trustee or its
property; or




          (iv) the Trustee otherwise 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 and the Guarantor 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
Securities then outstanding may appoint a successor Trustee to replace the successor Trustee
appointed by the Company.



     If a successor Trustee does not take office within 30 days after the retiring Trustee resigns
or is removed, the retiring Trustee, the Company or the Holders of at least 10% in aggregate
principal amount of the Securities then outstanding may petition any court of competent
jurisdiction at the expense of the Company for the appointment of a successor Trustee.



48









 





     If the Trustee fails to comply with Section 6.10, any Holder 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 and the Guarantor. Thereupon, the resignation or removal of the retiring
Trustee shall become effective, and the successor Trustee shall have all the rights, powers and
duties of the Trustee under this Indenture. The successor Trustee shall mail a notice of its
succession to Holders. The retiring Trustee shall promptly transfer all property held by it as
Trustee to the successor Trustee, subject to the lien provided for in Section 6.07.
Notwithstanding replacement of the Trustee pursuant to this Section 6.08, the obligations of the
Company and the Guarantor under Section 6.07 shall continue for the benefit of the retiring
Trustee.



     SECTION 6.09. Successor Trustee by Merger, etc. Subject to Section 6.10, 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; provided, however, that in the case of a transfer of all or substantially all of
its corporate trust business to another corporation, the transferee corporation expressly assumes
all of the Trustee’s liabilities hereunder.



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



     SECTION 6.10. Eligibility; Disqualification. There shall at all times be a Trustee hereunder
which shall be a corporation organized and doing business under the laws of the United States of
America, any State thereof or the District of Columbia and authorized under such laws to exercise
corporate trust power, shall be subject to supervision or examination by Federal or State (or the
District of Columbia) authority and shall have, or be a Subsidiary of a bank or bank holding
company having, a combined capital and surplus of at least $50 million as set forth in its most
recent published annual report of condition.



     This Indenture shall always have a Trustee that satisfies the requirements of TIA Sections
310(a)(1), 310(a)(2) and 310(a)(5). The Trustee is subject to and shall comply with the provisions
of TIA Section 310(b) during the period of time required by this Indenture. Nothing in this
Indenture shall prevent the Trustee from filing with the SEC the application referred to in the
penultimate paragraph of TIA Section 310(b).



     SECTION 6.11. Preferential Collection of Claims Against Company. The Trustee is subject to
and shall comply with the provisions of TIA Section 311(a), excluding any creditor relationship
listed in TIA Section 311(b). A Trustee who has resigned or been removed shall be subject to TIA
Section 311(a) to the extent indicated therein.



49









 





ARTICLE VII

DISCHARGE OF INDENTURE




     SECTION 7.01. Termination of Company’s and Guarantor’s Obligations.



          (a) Satisfaction and Discharge of Indenture. This Indenture shall cease to be of further
effect (except as provided in the last paragraph of this Section 7.01(a)), and the Trustee, on
demand of the Company, shall execute proper instruments acknowledging the satisfaction and
discharge of this Indenture, when:





     (1) either




     (A) all outstanding Securities theretofore authenticated and issued (other than
destroyed, lost or wrongfully taken Securities that have been replaced or paid) have
been delivered to the Trustee for cancellation; or




     (B) all outstanding Securities not theretofore delivered to the Trustee for
cancellation:




          (i) have become due and payable,




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




          (iii) will be scheduled for redemption by their terms within one year, and the
Company, in the case of clause (i) or (ii) above or this clause (iii), has deposited
or caused to be deposited with the Trustee as funds (immediately available to the
Holders in the case of clause (i)) in trust for such purpose an amount of cash or,
in the case of clause (ii) or this clause (iii), U.S. Government Obligations or a
combination thereof which, together with earnings thereon, will be sufficient, in
the case of clause (ii) or this clause (iii), in the opinion of a nationally
recognized firm of independent public accountants expressed in a written
certification thereof delivered to the Trustee, to pay and discharge the entire
indebtedness on such Securities for principal, premium, if any, Additional Amounts,
if any, and interest to the date of such deposit (in the case of Securities which
have become due and payable) or to the Stated Maturity or Redemption Date, as the
case may be;




          (2) the Company has paid all other sums payable by it hereunder; and




          (3) the Company has delivered to the Trustee an Officers’ Certificate stating that all
conditions precedent to satisfaction and discharge of this Indenture have been complied
with, together with an Opinion of Counsel to the same effect.



     However, the Company’s obligations in Sections 2.03, 2.06, 2.07, 3.02 and 7.01, the Company’s
and the Guarantor’s obligations in Sections 6.07, 6.08 and 7.04 and the Trustee’s and Paying
Agent’s obligations in Section 7.03 shall survive the satisfaction and discharge of this Indenture
until the Securities are no longer outstanding. Thereafter, only the Company’s and the



50









 







Guarantor’s obligations in Section 6.07 and the Trustee’s and Paying Agent’s obligations in
Section 7.03 shall survive.



          (b) Legal Defeasance. The Company and the Guarantor may, subject as provided herein,
terminate by legal defeasance all of their obligations under this Indenture if:





     (i) the Company has irrevocably deposited or caused to be irrevocably deposited
with the Trustee as trust funds in trust for the purpose of making the following
payments dedicated solely to the benefit of the Holders (A) cash in an amount, or
(B) U.S. Government Obligations, or (C) a combination thereof, sufficient, in the
opinion of a nationally recognized firm of independent public accountants expressed
in a written certification thereof delivered to the Trustee, to pay, without
consideration of the reinvestment of any such amounts and after payment of all taxes
or other charges or assessments in respect thereof payable by the Trustee, the
principal of and premium, if any, Additional Amounts, if any and interest on all
Securities on each date that such principal, premium, if any, Additional Amounts, if
any, or interest is due and payable and to pay all other sums payable by it
hereunder; provided that the Trustee shall have been irrevocably instructed to apply
such money or the proceeds of such U.S. Government Obligations to the payment of
said principal, premium, if any, Additional Amounts, if any, and interest with
respect to the Securities as the same shall become due;




     (ii) the Company has delivered to the Trustee an Officers’ Certificate stating
that all conditions precedent to such legal defesance have been complied with, and
an Opinion of Counsel to the same effect;




     (iii) no Default or Event of Default shall have occurred and be continuing on
the date of such deposit or, insofar as clauses (iv) and (v) of Section 5.01 are
concerned, at any time during the period ending on the 91st day after the date of
such deposit (it being understood that this condition shall not be deemed satisfied
until the expiration of such period);




     (iv) the Company shall have delivered to the Trustee an Opinion of Counsel from
nationally recognized counsel acceptable to the Trustee to the effect that, based on
a ruling of the Internal Revenue Service or a change in U.S. Federal income tax law
occurring after the date of this Indenture, the Holders of Securities will not
recognize income, gain or loss for U.S. Federal income tax purposes as a result of
the Company’s exercise of its option under this Section 7.01(b) and will be subject
to U.S. Federal income tax on the same amounts, in the same manner and at the same
times as would have been the case if such option had not been exercised;




     (v) such deposit and legal defeasance will not result in a breach or violation
of, or constitute a default under, any other agreement or instrument to which the
Company or the Guarantor is a party or by which it is bound;



51









 






     (vi) such deposit and legal defeasance shall not cause the Trustee to have a
conflicting interest as defined in TIA Section 310(b); and




     (vii) the Company shall have delivered to the Trustee an Opinion of Counsel to
the effect that after the passage of 91 days following the deposit, the trust funds
will not be subject to the effect of any applicable bankruptcy, insolvency,
reorganization or similar laws affecting creditors’ rights generally.



     In such event, payment of the Securities may not be accelerated because of an Event of
Default, Article IX and the other provisions of this Indenture shall cease to be of further effect
(except as provided in the next succeeding paragraph), and the Trustee, on demand of the Company,
shall execute proper instruments acknowledging such legal defeasance.



     However, the Company’s obligations in Sections 2.03, 2.06, 2.07, 3.02 and 7.01, the Company’s
and the Guarantor’s obligations in Sections 6.07, 6.08 and 7.04 and the Trustee’s and Paying
Agent’s obligations in Section 7.03 shall survive such legal defeasance until the Securities are no
longer outstanding. Thereafter, only the Company’s and the Guarantor’s obligations in Section 6.07
and the Trustee’s and Paying Agent’s obligations in Section 7.03 shall survive.



          (c) Covenant Defeasance. The Company and the Guarantor may, subject as provided herein, be
released from their respective obligations to comply with, and shall have no liability in respect
of any term, condition or limitation, set forth in Sections 3.07, 3.08, 3.09 and 4.01 and in
Article IX, and such omission to comply with any of Sections 3.07, 3.08, 3.09 and 4.01 and Article
IX shall not constitute an Event of Default under Section 5.01 (“Covenant Defeasance”), with the
remainder of this Indenture and such Securities unaffected thereby if:





     (i) the Company has irrevocably deposited or caused to be irrevocably deposited
with the Trustee as trust funds in trust for the purpose of making the following
payments dedicated solely to the benefit of the Holders (A) cash in an amount, or
(B) U.S. Government Obligations, or (C) a combination thereof, sufficient, in the
opinion of a nationally recognized firm of independent public accountants expressed
in a written certification thereof delivered to the Trustee, to pay, without
consideration of the reinvestment of any such amounts and after payment of all taxes
or other charges or assessments in respect thereof payable by the Trustee, the
principal of and premium, if any, Additional Amounts, if any and interest on all
Securities on each date that such principal, premium, if any, Additional Amounts, if
any, or interest is due and payable and to pay all other sums payable by it
hereunder; provided that the Trustee shall have been irrevocably instructed to apply
such money and/or the proceeds of such U.S. Government Obligations to the payment of
said principal, premium, if any, Additional Amounts, if any, and interest with
respect to the Securities as the same shall become due;




     (ii) the Company has delivered to the Trustee an Officers’ Certificate stating
that all conditions precedent to the Covenant Defeasance contemplated by



52









 






this provision have been complied with, and an Opinion of Counsel to the same
effect;




     (iii) no Default or Event of Default shall have occurred and be continuing on
the date of such deposit or, insofar as clauses (iv) and (v) of Section 5.01 are
concerned, at any time during the period ending on the 91st day after the date of
such deposit (it being understood that this condition shall not be deemed satisfied
until the expiration of such period);




     (iv) the Company shall have delivered to the Trustee an Opinion of Counsel from
nationally recognized counsel acceptable to the Trustee to the effect that the
Holders of Securities will not recognize income, gain or loss for U.S. Federal
income tax purposes as a result of the Company’s exercise of its option under this
Section 7.01(c) and will be subject to U.S. Federal income tax on the same amounts,
in the same manner and at the same times as would have been the case if such option
had not been exercised;




     (v) such Covenant Defeasance will not result in a breach or violation of, or
constitute a default under, any other agreement or instrument to which the Company
or the Guarantor is a party or by which it is bound;




     (vi) such Covenant Defeasance shall not cause the Trustee to have a conflicting
interest as defined in TIA Section 310(b); and




     (vii) the Company shall have delivered to the Trustee an Opinion of Counsel to
the effect that after the passage of 91 days following the deposit, the trust funds
will not be subject to the effect of any applicable bankruptcy, insolvency,
reorganization or similar laws affecting creditors’ rights generally.



          (d) In order to have money available on a payment date to pay principal of or premium, if any,
Additional Amounts, if any, or interest on the Securities, the U.S. Government Obligations shall be
payable as to principal or interest on or before such payment date in such amounts as will provide
the necessary money. U.S. Government Obligations shall not be callable at the issuer’s option.




          (e) The Company may exercise its option under Section 7.01(b) notwithstanding its prior
exercise of its Covenant Defeasance option under Section 7.01(c).




     SECTION 7.02. Application of Trust Money. The Trustee or a trustee satisfactory to the
Trustee and the Company shall hold in trust money or U.S. Government Obligations deposited with it
pursuant to Section 7.01. It shall apply the deposited money and the money from U.S. Government
Obligations through the Paying Agent and in accordance with this Indenture to the payment of
principal of and premium, if any, Additional Amounts, if any, and interest on Securities with
respect to which the deposit was made.



     SECTION 7.03. Repayment to Company. The Trustee and the Paying Agent shall promptly pay to
the Company upon written request any excess money or securities held by them at any time. Subject
to the requirements of any applicable abandoned property laws, the Trustee



53









 







and the Paying Agent shall pay to the Company upon written request any money held by them for
the payment of principal of, premium, if any, Additional Amounts, if any, or interest that remains
unclaimed for two years after the date upon which such payment shall have become due; provided,
however, that the Company shall have either caused notice of such payment to be mailed to each
Holder entitled thereto no less than 30 days prior to such repayment or within such period shall
have published such notice in a financial newspaper of widespread circulation published in The City
of New York. After payment to the Company, Holders entitled to the money must look to the Company
for payment as unsecured general creditors unless an applicable abandoned property law designates
another Person, and all liability of the Trustee and the Paying Agent with respect to such money
shall cease.



     SECTION 7.04. Reinstatement. If the Trustee or the Paying Agent is unable to apply any money
or U.S. Government Obligations in accordance with Section 7.01 by reason of any legal proceeding or
by reason of any order or judgment of any court or governmental authority enjoining, restraining or
otherwise prohibiting such application, the obligations of the Company and the Guarantor under this
Indenture and the Securities shall be revived and reinstated as though no deposit had occurred
pursuant to Section 7.01 until such time as the Trustee or the Paying Agent is permitted to apply
all such money or U.S. Government Obligations in accordance with Section 7.01; provided, however,
that if the Company or the Guarantor has made any payment of principal of or interest on any
Securities because of the reinstatement of its obligations, the Company or the Guarantor, as the
case may be, shall be subrogated to the rights of the Holders of such Securities to receive such
payment from the money or U.S. Government Obligations held by the Trustee or the Paying Agent.



ARTICLE VIII

AMENDMENTS




     SECTION 8.01. Without Consent of Holders. The Company, the Guarantor and the Trustee may
amend or supplement this Indenture or any of the Securities or waive any provision hereof or
thereof without the consent of any Holder:




     (i) to convey, transfer, assign, mortgage or pledge to the Trustee as security
for the Securities any property or assets;




     (ii) to evidence the succession of another Person to the Company or the
Guarantor, or successive successions, and the assumption by the successor Person of
the covenants, agreements and obligations of the Company or the Guarantor pursuant
to Section 4.01 or 4.02;




     (iii) to add to the covenants of the Company or the Guarantor such further
covenants, restrictions, conditions or provisions as the Company or the Guarantor
and the Trustee shall consider to be for the protection of the Holders of
Securities, to surrender any right or power herein conferred upon the Company or the
Guarantor, and to make the occurrence, or the occurrence and continuance, of a
default in any such additional covenants, restrictions, conditions or provisions an
Event of Default permitting the enforcement of all or any of the several remedies
provided in this Indenture, provided that in respect of any such



54









 






additional covenant, restriction, condition or provision such amendment or
supplement 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 an Event of Default or may limit the
remedies available to the Trustee upon such an Event of Default or may limit the
right of the Holders of a majority in aggregate principal amount of the Securities
to waive such an Event of Default;




     (iv) to cure any ambiguity or omission 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, provided that no such action shall adversely affect the interests of the
Holders of the Securities;




     (v) to provide for uncertificated Securities in addition to or in place of
certificated Securities, provided that the uncertificated Securities are issued in
registered form for purposes of Section 163(f) of the Code, or in a manner such that
uncertificated notes are described in Section 163(f)(2)(B) of the Code;




     (vi) to provide for the issuance of Exchange Securities and related Guarantees
or Additional Securities and related Guarantees in accordance with this Indenture;




     (vii) to effect or maintain, or otherwise comply with the requirements of the
SEC in connection with, the qualification of this Indenture under the TIA;




     (viii) to effect any provision of this Indenture; or




     (ix) to make any other change that does not adversely affect the rights of any
Holder.



     Upon the request of the Company and the Guarantor accompanied by a resolution of the Board of
Directors of each of the Company and the Guarantor authorizing the execution of any supplemental
indenture entered into to effect any such amendment, supplement or waiver, and upon receipt by the
Trustee of the documents described in Section 8.06, the Trustee shall join with the Company and the
Guarantor in the execution of such supplemental indenture. After an amendment, supplement or
waiver under this Section 8.01 becomes effective, the Company shall mail to the Holders of each
Security 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 amendment, supplement or waiver.



     SECTION 8.02. With Consent of Holders. Except as provided below in this Section 8.02, the
Company, the Guarantor and the Trustee may amend or supplement this Indenture with the consent
(including consents obtained in connection with a tender offer or exchange offer for the Securities
or a solicitation of consents in respect of the Securities, provided that in each case such offer
or solicitation is made to all Holders of the Securities then outstanding on equal terms)



55









 







of the Holders of at least a majority in aggregate principal amount of the Securities then
outstanding affected thereby.



     The Holders of a majority in aggregate principal amount of the Securities then outstanding may
waive compliance in a particular instance by the Company or the Guarantor with any provision of
this Indenture or the Securities (including waivers obtained in connection with a tender offer or
exchange offer for the Securities or a solicitation of consents in respect of the Securities,
provided that in each case such offer or solicitation is made to all Holders of the Securities then
outstanding on equal terms).



     Upon the request of the Company and the Guarantor accompanied by a resolution of the Board of
Directors of each of the Company and the Guarantor authorizing the execution of any supplemental
indenture entered into to effect any such amendment, supplement or waiver, and upon the filing with
the Trustee of evidence of the consent of the Holders as aforesaid, and upon receipt by the Trustee
of the documents described in Section 8.06, the Trustee shall join with the Company and the
Guarantor in the execution of such supplemental indenture. After an amendment, supplement or waiver
under this Section 8.02 becomes effective, the Company shall mail to the Holders of each Security
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 amendment, supplement or waiver.



     It shall not be necessary for the consent of the Holders under this Section 8.02 to approve
the particular form of any proposed amendment, supplement or waiver, but it shall be sufficient if
such consent approves the substance thereof.



     Without the consent of each Holder affected, an amendment, supplement or waiver under this
Section 8.02 may not:




     (i) extend the final maturity of the principal of any of the Securities;




     (ii) reduce the principal amount of any of the Securities;




     (iii) reduce the rate or extend the time of payment of interest, including
default interest, or Additional Amounts, if any, on any of the Securities;




     (iv) reduce any amount payable on redemption of any of the Securities;




     (v) change the currency in which the principal of or premium, if any,
Additional Amounts, if any, or interest on any of the Securities is payable;




     (vi) impair the right to institute suit for the enforcement of any payment of
principal of or premium, if any, Additional Amounts, if any, or interest on any
Security pursuant to Sections 5.07 and 5.08, except as limited by Section 5.06;




     (vii) make any change in the percentage of principal amount of the Securities
necessary to waive compliance with or to modify certain provisions of



56









 






this Indenture pursuant to Section 5.04 or 5.07 or this clause of this Section
8.02; or




     (viii) waive a continuing Default or Event of Default in the payment of
principal of or premium, if any, Additional Amounts, if any, or interest, including
default interest, on the Securities.



     The right of any Holder to participate in any consent required or sought pursuant to any
provision of this Indenture (and the obligation of the Company to obtain any such consent otherwise
required from such Holder) may be subject to the requirement that such Holder shall have been the
Holder of record of the Securities as of a record date fixed by the Company in accordance with
Section 8.04 of this Indenture.



     SECTION 8.03. Compliance with Trust Indenture Act. Every amendment or supplement to this
Indenture or the Securities shall comply in form and substance with the TIA as then in effect.



     SECTION 8.04. Revocation and Effect of Consents. A consent to an amendment, a supplement or a
waiver by a Holder is a continuing consent by the Holder and every subsequent Holder of a Security
or portion of a Security that evidences the same debt as the consenting Holder’s Security, even if
notation of the consent is not made on any Security. However, any such Holder or subsequent Holder
may revoke the consent as to its Security or portion of a Security if the Trustee receives written
notice of revocation at any time prior to (but not after) the date the Trustee receives an
Officers’ Certificate certifying that the Holders of the requisite principal amount of Securities
have consented (and not theretofore revoked such consent) to the amendment, supplement or waiver.
An amendment, supplement or waiver becomes effective in accordance with its terms and thereafter
binds every Holder, and a consent thereto given in connection with a tender of a Holder’s
Securities shall not be rendered invalid by such tender.



     The Company may, but shall not be obligated to, fix a record date for the purpose of
determining the Holders entitled to consent to any amendment, supplement or waiver or to take any
other action with respect to the Securities under this Indenture. If a record date is fixed, then
notwithstanding the provisions of the immediately preceding paragraph, those Persons who were
Holders at the close of business on such record date (or their duly designated proxies), and only
those Persons, shall be entitled to consent to such amendment, supplement or waiver or to revoke
any consent previously given, whether or not such Persons continue to be Holders after such record
date, and for this purpose the Securities then outstanding shall be computed as of such record
date. No consent shall be valid or effective for more than 90 days after such record date unless
consents from Holders of the principal amount of the Securities required hereunder for such
amendment, supplement or waiver to be effective shall have also been given and not revoked within
such 90-day period.



     After an amendment, supplement or waiver becomes effective, it shall bind every Holder, unless
it is of the type described in any of clauses (i) through (viii) of Section 8.02. In such case, the
amendment, supplement or waiver shall bind each Holder who has consented to it and every subsequent
Holder that evidences the same debt as the consenting Holder’s Security.



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     SECTION 8.05. Notation on or Exchange of Securities. If an amendment or supplement changes
the terms of a Security, the Trustee may require the Holder of the Security to deliver it to the
Trustee. The Trustee may place an appropriate notation on the Security regarding the changed terms
and return it to the Holder. Alternatively, if the Company or the Trustee so determines, the
Company in exchange for the Security shall issue and the Trustee shall authenticate a new Security
that reflects the changed terms. Failure to make the appropriate notation or to issue a new
Security shall not affect the validity of such amendment or supplement.



     SECTION 8.06. Trustee to Sign Amendments, etc. The Trustee shall sign any supplemental
indenture authorized pursuant to this Article VIII if the supplemental indenture 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 such supplemental indenture, the Trustee
shall receive, and subject to Section 6.01, shall be fully protected in relying upon, an Opinion of
Counsel and an Officers’ Certificate, as conclusive evidence that all conditions precedent to such
supplemental indenture have been complied with, that such 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 and the Guarantor in accordance with its terms.



ARTICLE IX

GUARANTEES OF SECURITIES




     SECTION 9.01. Unconditional Guarantees.



          (a) For value received, the Guarantor hereby fully, irrevocably, unconditionally and
absolutely guarantees to the Holders and to the Trustee the due and punctual payment of the
principal of and premium, if any, Additional Amounts, if any, and interest on the Securities and
all other amounts due and payable under this Indenture and the Securities by the Company
(including, without limitation, all costs and expenses (including reasonable legal fees and
disbursements) incurred by the Trustee or the Holders in connection with the enforcement of this
Indenture, the Securities and the Guarantees) (collectively, the “Indenture Obligations”), when and
as such principal, premium, if any, Additional Amounts, if any, and interest and such other amounts
shall become due and payable, whether at the Stated Maturity, upon redemption or by declaration of
acceleration or otherwise, according to the terms of the Securities and this Indenture. The
guarantees by the Guarantor set forth in this Article IX are referred to herein as the
“Guarantees.” Without limiting the generality of the foregoing, the Guarantor’s liability shall
extend to all amounts that constitute part of the Indenture Obligations and would be owed by the
Company under this Indenture and the Securities but for the fact that they are unenforceable,
reduced, limited, impaired, suspended or not allowable due to the existence of a bankruptcy,
reorganization or similar proceeding involving the Company.




          (b) Failing payment when due of any amount guaranteed pursuant to the Guarantees, for whatever
reason, the Guarantor will be obligated to pay the same immediately to the Trustee, without set-off
or counterclaim or other reduction whatsoever (whether for taxes, withholding or otherwise). The
Guarantees are intended to be general, unsecured, senior obligations of the Guarantor and to rank
pari passu in right of payment with all indebtedness of



58









 






the Guarantor that is not, by its terms, expressly subordinated in right of payment to the
Guarantees of the Guarantor. The Guarantor hereby agrees that its obligations hereunder shall be
full, irrevocable, unconditional and absolute, irrespective of the validity, regularity or
enforceability of the obligations and liabilities of any other obligor with respect to the
Securities, the Guarantees or this Indenture, the absence of any action to enforce the same, any
waiver or consent by any Holder with respect to any provisions hereof or thereof with respect to
the same, the recovery of any judgment against the Company, or any other circumstance which might
otherwise constitute a legal or equitable discharge or defense of the Guarantor.




     The Guarantor hereby agrees that in the event of a default in payment of the principal of or
premium, if any, Additional Amounts, if any, or interest on the Securities or any other amounts
payable under this Indenture and the Securities by the Company, whether at the Stated Maturity,
upon redemption or by declaration of acceleration or otherwise, legal proceedings may be instituted
by the Trustee on behalf of the Holders or, subject to Section 5.06, by the Holders, on the terms
and conditions set forth in this Indenture, directly against the Guarantor to enforce the
Guarantees without first proceeding against the Company.



          (c) To the fullest extent permitted by applicable law, the obligations of the Guarantor under
this Article IX shall be as aforesaid full, irrevocable, unconditional and absolute and shall not
be impaired, modified, discharged, released or limited by any occurrence or condition whatsoever,
including, without limitation, (i) any compromise, settlement, release, waiver, renewal, extension,
indulgence or modification of, or any change in, any of the obligations and liabilities of any
other obligor with respect to the Securities contained in any of the Securities or this Indenture,
(ii) any impairment, modification, release or limitation of the liability of the Company, the
Guarantor or any of their respective estates in bankruptcy, or any remedy for the enforcement
thereof, resulting from the operation of any present or future provision of any applicable
Bankruptcy Law, or other statute or from the decision of any court, (iii) the assertion or exercise
by the Company, the Guarantor or the Trustee of any rights or remedies under any of the Securities
or this Indenture or its delay in or failure to assert or exercise any such rights or remedies,
(iv) the assignment or the purported assignment of any property as security for any of the
Securities, including all or any part of the rights of the Company or the Guarantor under this
Indenture, (v) the extension of the time for payment by the Company or the Guarantor of any
payments or other sums or any part thereof owing or payable under any of the terms and provisions
of any of the Securities or this Indenture or of the time for performance by the Company or the
Guarantor of any other obligations under or arising out of any such terms and provisions or the
extension or the renewal of any thereof, (vi) the modification or amendment (whether material or
otherwise) of any duty, agreement or obligation set forth in this Indenture of any other obligor
with respect to the Securities, (vii) the voluntary or involuntary liquidation, dissolution, sale
or other disposition of all or substantially all of the assets, marshaling of assets and
liabilities, receivership, insolvency, bankruptcy, assignment for the benefit of creditors,
reorganization, arrangement, composition or readjustment of, or other similar proceeding affecting,
either of the Company or the Guarantor or any of its assets, or the disaffirmance of any of the
Securities, the Guarantees or this Indenture in any such proceeding, (viii) the release or
discharge of the Company or the Guarantor from the performance or observance of any agreement,
covenant, term or condition contained in any of such instruments by operation of law, (ix) the
unenforceability of any of the obligations of any of the other obligors under the Securities, the
Guarantees or this Indenture, (x) any change in the name,



59









 






business, capital structure, corporate existence, or ownership of the Company or the
Guarantor, or (xi) any other circumstance which might otherwise constitute a defense available to,
or a legal or equitable discharge of, a surety or the Guarantor.




          (d) The Guarantor hereby (i) waives diligence, presentment, demand of payment, notice of
acceptance, filing of claims with a court in the event of the merger, insolvency or bankruptcy of
the Company or the Guarantor, and all demands and notices whatsoever, (ii) acknowledges that any
agreement, instrument or document evidencing the Guarantees may be transferred and that the benefit
of its obligations hereunder shall extend to each holder of any agreement, instrument or document
evidencing the Guarantees without notice to them and (iii) covenants that its Guarantees will not
be discharged except by complete performance of the Guarantees or of the obligations guaranteed
thereby. The Guarantor further agrees that if at any time all or any part of any payment
theretofore applied by any Person to the Guarantees is, or must be, rescinded or returned for any
reason whatsoever, including, without limitation, the insolvency, bankruptcy or reorganization of
the Guarantor, the Guarantees shall, to the extent that such payment is or must be rescinded or
returned, be deemed to have continued in existence notwithstanding such application, and the
Guarantees shall continue to be effective or be reinstated, as the case may be, as though such
application had not been made.




          (e) The Guarantor shall be subrogated to all rights of the Holders and the Trustee against the
Company in respect of any amounts paid by the Guarantor pursuant to the provisions of this
Indenture; provided, however, that the Guarantor shall not be entitled to enforce or to receive any
payments arising out of, or based upon, such right of subrogation with respect to any of the
Securities until all of the Securities and the Guarantees thereof shall have been paid in full or
discharged.




          (f) No failure to exercise and no delay in exercising, on the part of the Trustee or the
Holders, any right, power, privilege or remedy under this Article IX and the Guarantees shall
operate as a waiver thereof, nor shall any single or partial exercise of any rights, power,
privilege or remedy preclude any other or further exercise thereof, or the exercise of any other
rights, powers, privileges or remedies. The rights and remedies herein provided for are cumulative
and not exclusive of any rights or remedies provided in law or equity. Nothing contained in this
Article IX shall limit the right of the Trustee or the Holders to take any action to accelerate the
Maturity of the Securities pursuant to Article V or to pursue any rights or remedies hereunder or
under applicable law.




     SECTION 9.02. Execution and Delivery of Notation of Guarantees. To further evidence the
Guarantees, the Guarantor hereby agrees that a notation of such Guarantees may be endorsed on each
Security authenticated and delivered by the Trustee and that such notation shall be executed by
either manual or facsimile signature of an Officer of the Guarantor.



     The Guarantor hereby agrees that its Guarantees shall remain in full force and effect
notwithstanding any failure to endorse on each Security a notation of the Guarantees.



     If an Officer of the Guarantor whose signature is on this Indenture or a Security no longer
holds that office at the time the Trustee authenticates such Security or at any time thereafter,
the Guarantor’s guarantee of such Security shall be valid nevertheless.



60









 





     The delivery of any Security by the Trustee, after the authentication thereof hereunder, shall
constitute due delivery of the Guarantees set forth in this Indenture on behalf of the Guarantor.



ARTICLE X

REDEMPTION




     SECTION 10.01. Notices to Trustee. If the Company elects to redeem the Securities pursuant to
the redemption provisions of Section 10.07, it shall furnish to the Trustee, at least five days
before notice of such redemption is to be given pursuant to Section 10.03, an Officers’ Certificate
setting forth the Redemption Date, the principal amount of such Securities to be redeemed and the
Redemption Price (or the method of calculating the Redemption Price).



     SECTION 10.02. Selection of Securities to be Redeemed. If less than all of the Securities are
to be redeemed, the Trustee shall select the Securities to be redeemed by such method as the
Trustee in its sole discretion shall deem fair and appropriate. The particular Securities to be
redeemed shall be selected by the Trustee from the outstanding Securities 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 them selected shall be in minimum amounts of
$2,000 and integral multiples of $1,000 in excess thereof. Except as provided in the preceding
sentence, provisions of this Indenture that apply to Securities called for redemption also apply to
portions of Securities called for redemption.



     SECTION 10.03. Notices to Holders.



          (a) At least 20 days but not more than 75 days before a Redemption Date (unless a different
notice period is specified in the Securities), the Company shall mail in conformity with Section
11.02 a notice of redemption to each Holder whose Securities are to be redeemed. The notice shall
identify the Securities to be redeemed (including CUSIP, ISIN or similar numbers, if any) and shall
state:





     (i) the Redemption Date;




     (ii) the Redemption Price (or the method of calculating the Redemption Price);




     (iii) if any Security is 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 in principal amount equal
to the unredeemed portion will be issued;




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



61









 






     (v) that Securities called for redemption must be surrendered to the Paying
Agent at the address specified in such notice to collect the Redemption Price;




     (vi) that unless the Company defaults in making the redemption payment,
interest on Securities called for redemption ceases to accrue on and after the
Redemption Date and the only remaining right of the Holders is to receive payment of
the Redemption Price upon surrender to the Paying Agent of the Securities; and




     (vii) the aggregate principal amount of Securities being redeemed.



     If any of the Securities to be redeemed is in the form of a Global Security, then the Company
shall modify such notice to the extent necessary to accord with the procedures of the Depositary
applicable to redemptions.



          (b) At the Company’s request, the Trustee shall give the notice required in Section 10.03(a)
in the Company’s name; provided, however, that the Company shall deliver to the Trustee, at least
15 days prior to the requested mailing date (unless the Trustee consents in writing to a shorter
period), an Officers’ Certificate requesting that the Trustee give such notice and setting forth
the information to be stated in such notice as provided in Section 10.03(a).




     SECTION 10.04. Effect of Notices of Redemption. Once notice of redemption is mailed pursuant
to Section 10.03, Securities called for redemption become due and payable on the Redemption Date at
the Redemption Price. Upon surrender to the Paying Agent, such Securities shall be paid out at the
Redemption Price, plus accrued and unpaid interest up to, but not including, the Redemption Date;
provided, however, that if the Redemption Date is after the taking of a record of the Holders on a
record date and on or prior to the related Interest Payment Date, the accrued and unpaid interest
shall be payable to the Person in whose name the redeemed Securities are registered on such record
date. Failure to give notice or any defect in the notice to any Holder shall not affect the
validity of the notice to any other Holder.



     SECTION 10.05. Deposit of Redemption Price. At or prior to 11:00 a.m. New York City time on
the Redemption Date, the Company shall deposit with the Trustee or with the Paying Agent
immediately available funds sufficient to pay the Redemption Price of all Securities to be redeemed
on that date, plus accrued and unpaid interest thereon up to, but not including, the Redemption
Date. The Trustee or the Paying Agent shall return to the Company any money not required for that
purpose less the expenses of the Trustee as provided herein.



     If the Company complies with the preceding paragraph, interest on the Securities or portions
thereof to be redeemed (whether or not such Securities are presented for payment) will cease to
accrue on the applicable Redemption Date. If any Security called for redemption shall not be so
paid upon surrender because of the failure of the Company to comply with the preceding paragraph,
then interest will be paid on the unpaid principal, premium, if any, and Additional Amounts, if
any, from the Redemption Date until such principal, premium, if any, and Additional Amounts, if
any, are paid and, to the extent lawful, on any interest not paid on such unpaid principal, in each
case at the rate provided in the Securities and in Section 3.01.



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     SECTION 10.06. Securities Redeemed in Part. Upon surrender of a Security that is redeemed in
part, the Company shall issue and the Trustee shall authenticate for the Holder, at the expense of
the Company, a new Security equal in principal amount to the unredeemed portion of the Security
surrendered.



     SECTION 10.07. Optional Redemption. The Securities may be redeemed at any time on such terms
and subject to such conditions as are specified in such Securities.



     Any redemption pursuant to this Section 10.07 shall be made, to the extent applicable,
pursuant to the provisions of Sections 10.01 through 10.06.



ARTICLE XI

MISCELLANEOUS




     SECTION 11.01. Trust Indenture Act Controls. Any reference to a requirement under the TIA
shall apply to this Indenture irrespective of whether or not this Indenture is then qualified
thereunder. If any provision of this Indenture limits, qualifies or conflicts with another
provision which is required to be included in this Indenture by the TIA (or in any other indenture
qualified thereunder), the provision required by the TIA shall control.



     SECTION 11.02. Notices. Any notice or communication by the Company, the Guarantor or the
Trustee to the others is duly given if in writing and delivered in person, by facsimile or by
overnight air courier guaranteeing next day delivery or if mailed by first-class mail (registered
or certified, return receipt requested), in each case to the other’s address:



       If to either the Company or the Guarantor, to it at:


Nabors Industries, Inc.

515 West Greens Road, Suite 1200

Houston, Texas 77067

Attention: General Counsel

Facsimile: (281) 775-8431



If to the Trustee:



Wells Fargo Bank, National Association

201 Main Street, Suite 301

Fort Worth, Texas 76102

Attention: Corporate Trust Services

Facsimile: (817) 885-8650




       Each of the Company, the Guarantor and the Trustee by notice to the others may designate
additional or different addresses for subsequent notices or communications.



       All notices and communications 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, if telecopied; and the next Business Day after
timely delivery to the courier, if sent by overnight air courier guaranteeing next day



63









 







delivery. Notwithstanding the foregoing, notices to the Trustee shall be effective only upon
receipt.



     Any notice or communication to a Holder shall be mailed by first-class mail, postage prepaid,
to the Holder’s address shown on the register kept by the Registrar. 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.



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



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



     All notices or communications, including, without limitation, notices to the Trustee or the
Company or the Guarantor by Holders, shall be in writing, except as set forth below, and in the
English language.



     In case by reason of the suspension of regular mail service, or by reason of any other cause,
it shall be impossible to mail any notice required by this Indenture, then such method of
notification as shall be made with the approval of the Trustee shall constitute a sufficient
mailing of such notice.



     SECTION 11.03. Communication by Holders with Other Holders. Holders may communicate pursuant
to TIA Section 312(b) with other Holders with respect to their rights under this Indenture, the
Securities or the Guarantees. The Company, the Guarantor, the Trustee, the Registrar and anyone
else shall have the protection of TIA Section 312(c).



     SECTION 11.04. Certificate and Opinion as to Conditions Precedent. Upon any request or
application by the Company or the Guarantor to the Trustee to take any action under this Indenture,
the Company or the Guarantor shall, if requested by the Trustee, furnish to the Trustee:




     (i) an Officers’ Certificate (which shall include the statements set forth in
Section 11.05) stating that, in the opinion of the signers, all conditions precedent
and covenants, if any, provided for in this Indenture relating to the proposed
action have been complied with; and




     (ii) an Opinion of Counsel (which shall include the statements set forth in
Section 11.05) stating that, in the opinion of such counsel, all such conditions
precedent and covenants have been complied with.



     Notwithstanding the foregoing, no such Opinion of Counsel shall be required in connection with
the issuance of the Initial Securities pursuant to the Offering.



64









 





     SECTION 11.05. Statements Required in Certificate or Opinion. Each certificate or opinion
with respect to compliance with a condition or covenant provided for in this Indenture shall
include:




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




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




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




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



     SECTION 11.06. Rules by Trustee and Agents. The Trustee may make reasonable rules for action
by or at a meeting of Holders. The Registrar or the Paying Agent may make reasonable rules and set
reasonable requirements for its functions.



     SECTION 11.07. Legal Holidays. 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, and no
interest shall accrue for the intervening period. If a record date is a Legal Holiday, the record
date shall not be affected.



     SECTION 11.08. No Recourse Against Others. A director, officer, employee or stockholder of
the Company or the Guarantor, as such, shall not have any liability for any obligations of the
Company or the Guarantor under the Securities, the Guarantees or this Indenture or for any claim
based on, in respect of or by reason of such obligations or their creation. Each Holder by
accepting a Security waives and releases all such liability. The waiver and release shall be part
of the consideration for the issue of the Securities.



     SECTION 11.09. Governing Law. This Indenture, the Securities and the Guarantees shall be
governed by and construed in accordance with the laws of the State of New York.



     SECTION 11.10. Consent to Jurisdiction and Service of Process. The Guarantor is not organized
under the laws the United States (including the States thereof and the District of Columbia) and
therefore it hereby appoints the Company as the authorized agent thereof (the “Authorized Agent”)
upon whom process may be served in any action, suit or proceeding arising out of or based on this
Indenture or the Securities which may be instituted in the Supreme Court of the State of New York
or the United States District Court for the Southern District of New York, in either case in the
Borough of Manhattan, The City of New York, by the Holder of any Security, and to the fullest
extent permitted by applicable law, the Guarantor hereby waives any objection which it may now or
hereafter have to the laying of venue of any such proceeding and expressly and irrevocably accepts
and submits, for the benefit of the Holders from time to time



65









 







of the Securities, to the nonexclusive jurisdiction of any such court in respect of any such
action, suit or proceeding, for itself and with respect to its properties, revenues and assets.
Such appointment shall be irrevocable unless and until the appointment of a successor authorized
agent for such purpose, and such successor’s acceptance of such appointment, shall have occurred.
The Guarantor agrees to take any and all actions, including the filing of any and all documents and
instruments, that may be necessary to continue such appointment in full force and effect as
aforesaid. Service of process upon the Authorized Agent with respect to any such action shall be
deemed, in every respect, effective service of process upon the Guarantor. Notwithstanding the
foregoing, any action against the Guarantor arising out of or based on any Security or the
Guarantees may also be instituted by the Holder of such Security in any court in the jurisdiction
of organization of the Guarantor, and the Guarantor expressly accepts the jurisdiction of any such
court in any such action. The Company hereby accepts the foregoing appointment as agent for
service of process.



     SECTION 11.11. Waiver of Immunity. To the extent that the Guarantor or any of its properties,
assets or revenues may have or may hereafter become entitled to, or have attributed to it, any
right of immunity, on the grounds of sovereignty or otherwise, from any legal action, suit or
proceeding, from the giving of any relief in any thereof, from set-off or counterclaim, from the
jurisdiction of any court, from service of process, from attachment upon or prior to judgment, from
attachment in aid of execution of judgment, or from execution of judgment, or other legal process
or proceeding for the giving of any relief or for the enforcement of any judgment, in any
jurisdiction in which proceedings may at any time be commenced, with respect to its obligations,
liabilities or any other matter under or arising out of or in connection with this Indenture or the
Securities, the Guarantor, to the maximum extent permitted by law, hereby irrevocably and
unconditionally waives, and agrees not to plead or claim, any such immunity and consents to such
relief and enforcement.



     SECTION 11.12. Judgment Currency. The Guarantor agrees to indemnify the Trustee and each
Holder against any loss incurred by it as a result of any judgment or order being given or made and
expressed and paid in a currency (the “Judgment Currency”) other than U.S. dollars and as a result
of any variation as between (a) the rate of exchange at which the U.S. dollar amount is converted
into the Judgment Currency for the purpose of such judgment or order and (b) the spot rate of
exchange in The City of New York at which the Trustee or such Holder on the date of payment of such
judgment or order is able to purchase U.S. dollars with the amount of the Judgment Currency
actually received by the Trustee or such Holder. The foregoing indemnity shall constitute a
separate and independent obligation of the Guarantor and shall continue in full force and effect
notwithstanding any such judgment or order as aforesaid. The term “spot rate of exchange” shall
include any premiums and costs of exchange payable in connection with the purchase of, or
conversion into, U.S. dollars.



     SECTION 11.13. No Adverse Interpretation of Other Agreements. This Indenture may not be used
to interpret another indenture, loan or debt agreement of the Company, the Guarantor or any other
Subsidiary of the Guarantor. Any such indenture, loan or debt agreement may not be used to
interpret this Indenture.



66









 





     SECTION 11.14. Successors. All agreements of the Company and the Guarantor in this Indenture
and the Securities shall bind their respective successors. All agreements of the Trustee in this
Indenture shall bind its successor.



     SECTION 11.15. 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 11.16. Counterpart Originals. The parties may sign any number of copies of this
Indenture by manual or facsimile signature. Each signed copy shall be an original, but all of them
together represent the same agreement.



     SECTION 11.17. 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 hereof and shall in no way modify or restrict any of the terms or
provisions hereof.



67









 





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



	 	 	 	 	 	 	 
	 	 	Company:	 	 
	 
	 	 	 	 	 	 
	 	 	NABORS INDUSTRIES, INC.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Bruce P. Koch
	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	Bruce P. Koch

Vice President and

Chief Financial Officer	 	 
	 
	 	 	 	 	 	 
	 	 	Guarantor:	 	 
	 
	 	 	 	 	 	 
	 	 	NABORS INDUSTRIES LTD.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Bruce P. Koch	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	Bruce P. Koch

Vice President and

Chief Financial Officer	 	 
	 
	 	 	 	 	 	 
	 	 	Trustee:	 	 
	 
	 	 	 	 	 	 
	 	 	WELLS FARGO BANK, NATIONAL ASSOCIATION, as Trustee	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ John C. Stohlmann	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	John C. Stohlmann

Vice President	 	 







68









 








EXHIBIT A




FACE OF SECURITY




GLOBAL SECURITY LEGEND




     THIS GLOBAL SECURITY IS HELD BY THE DEPOSITARY (AS DEFINED IN THE INDENTURE GOVERNING THIS
SECURITY) OR ITS NOMINEE IN CUSTODY FOR THE BENEFIT OF THE BENEFICIAL OWNERS HEREOF, AND IS NOT
TRANSFERABLE TO ANY PERSON UNDER ANY CIRCUMSTANCES EXCEPT THAT (I) THE REGISTRAR MAY MAKE SUCH
NOTATIONS HEREON AS MAY BE REQUIRED PURSUANT TO SECTION 2.06 OF THE INDENTURE, (II) THIS GLOBAL
SECURITY MAY BE EXCHANGED IN WHOLE BUT NOT IN PART PURSUANT TO SECTION 2.06(a) OF THE INDENTURE AND
(III) THIS GLOBAL SECURITY MAY BE DELIVERED TO THE TRUSTEE FOR CANCELLATION PURSUANT TO SECTION
2.11 OF THE INDENTURE.



     UNLESS AND UNTIL IT IS EXCHANGED IN WHOLE OR IN PART FOR SECURITIES IN DEFINITIVE FORM, THIS
SECURITY MAY NOT BE TRANSFERRED EXCEPT AS A WHOLE BY THE DEPOSITARY TO A NOMINEE OF THE DEPOSITARY
OR BY A NOMINEE OF THE DEPOSITARY TO THE DEPOSITARY OR ANOTHER NOMINEE OF THE DEPOSITARY OR BY THE
DEPOSITARY OR ANY SUCH NOMINEE TO A SUCCESSOR DEPOSITARY OR A NOMINEE OF SUCH SUCCESSOR DEPOSITARY.
UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST
COMPANY (55 WATER STREET, NEW YORK, NEW YORK) (“DTC”) TO THE COMPANY OR ITS AGENT FOR REGISTRATION
OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY CERTIFICATE ISSUED IS REGISTERED IN THE NAME OF CEDE &
CO. OR SUCH OTHER NAME AS MAY BE REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT
IS MADE TO CEDE & CO. OR SUCH OTHER ENTITY AS MAY BE 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.*



PRIVATE PLACEMENT LEGEND




     THIS SECURITY HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE
“SECURITIES ACT”), OR ANY STATE SECURITIES LAWS. NEITHER THIS SECURITY NOR ANY INTEREST OR
PARTICIPATION HEREIN MAY BE REOFFERED, SOLD, ASSIGNED, TRANSFERRED, PLEDGED, ENCUMBERED OR
OTHERWISE DISPOSED OF IN THE ABSENCE OF SUCH REGISTRATION OR UNLESS SUCH TRANSACTION IS





 




			
	*	 	This paragraph should be included only if the Security is a Global Security.




Exhibit A-1









 









EXEMPT FROM, OR NOT SUBJECT TO, THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT.




     THE HOLDER OF THIS SECURITY BY ITS ACCEPTANCE HEREOF (1) REPRESENTS THAT (A) IT IS A
“QUALIFIED INSTITUTIONAL BUYER” (AS DEFINED IN RULE 144A UNDER THE SECURITIES ACT (“RULE 144A”)),
OR (B) IT IS A NON-U.S. PURCHASER AND IS ACQUIRING THIS SECURITY IN AN OFFSHORE TRANSACTION WITHIN
THE MEANING OF REGULATION S UNDER THE SECURITIES ACT, PURSUANT TO RULE 904 OF REGULATION S, AND (2)
AGREES TO OFFER, SELL OR OTHERWISE TRANSFER SUCH SECURITY, PRIOR TO THE DATE (THE “RESALE
RESTRICTION TERMINATION DATE”) WHICH IS ONE YEAR (OR SUCH OTHER DATE WHEN RESALES OF SECURITIES BY
NON-AFFILIATES ARE FIRST PERMITTED UNDER RULE 144(d)) AFTER THE LATER OF THE ORIGINAL ISSUE DATE
HEREOF (OR ANY PREDECESSOR OF THIS SECURITY) OR THE DATE OF ANY SUBSEQUENT REOPENING OF THE
SECURITIES AND THE LAST DATE ON WHICH THE COMPANY OR ANY AFFILIATE OF THE COMPANY WAS THE OWNER OF
THIS SECURITY (OR ANY PREDECESSOR OF SUCH SECURITY), ONLY (A) TO NABORS INDUSTRIES LIMITED OR ANY
OF ITS SUBSIDIARIES, (B) PURSUANT TO A REGISTRATION STATEMENT WHICH HAS BEEN DECLARED EFFECTIVE
UNDER THE SECURITIES ACT, (C) FOR SO LONG AS THE SECURITIES ARE ELIGIBLE FOR RESALE PURSUANT TO
RULE 144A, TO A PERSON IT REASONABLY BELIEVES IS A “QUALIFIED INSTITUTIONAL BUYER” AS DEFINED IN
RULE 144A THAT PURCHASES FOR ITS OWN ACCOUNT OR FOR THE ACCOUNT OF A QUALIFIED INSTITUTIONAL BUYER
TO WHOM NOTICE IS GIVEN THAT THE TRANSFER IS BEING MADE IN RELIANCE ON RULE 144A, (D) PURSUANT TO
OFFERS AND SALES TO NON-U.S. PURCHASERS THAT OCCUR OUTSIDE THE UNITED STATES WITHIN THE MEANING OF
REGULATION S UNDER THE SECURITIES ACT, PURSUANT TO RULE 904 OF REGULATION S, OR (E) PURSUANT TO
ANOTHER AVAILABLE EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT AND THE
SECURITIES LAWS OF ANY OTHER JURISDICTION, INCLUDING ANY STATE OF THE UNITED STATES, SUBJECT TO THE
COMPANY’S AND THE TRUSTEE’S RIGHT PRIOR TO ANY SUCH OFFER, SALE OR TRANSFER TO REQUIRE THE DELIVERY
OF AN OPINION OF COUNSEL SATISFACTORY TO EACH OF THEM AND/OR A CERTIFICATE OF TRANSFER OR EXCHANGE
IN THE FORM PRESCRIBED IN THE INDENTURE. THIS LEGEND WILL BE REMOVED UPON THE REQUEST OF THE
HOLDER AFTER THE RESALE RESTRICTION TERMINATION DATE.



     BY ITS ACQUISITION AND HOLDING OF THIS SECURITY THE HOLDER THEREOF WILL BE DEEMED TO HAVE
REPRESENTED, WARRANTED AND AGREED THAT EITHER (I) IT IS NOT AN EMPLOYEE BENEFIT PLAN OR ARRANGEMENT
SUBJECT TO THE FIDUCIARY RESPONSIBILITY REQUIREMENT OF TITLE I OF U.S. EMPLOYEE RETIREMENT INCOME
SECURITY ACT OF 1974, AS AMENDED (“ERISA”), A “PLAN” OR ARRANGEMENT SUBJECT TO SECTION 4975 OF THE
U.S. INTERNAL REVENUE CODE OF 1986, AS AMENDED (THE “CODE”), OR AN ENTITY WHOSE UNDERLYING ASSETS



Exhibit A-2















 







 INCLUDE PLAN ASSETS BY REASON OF SUCH EMPLOYEE BENEFIT PLAN OR PLAN’S
INVESTMENT IN THE ENTITY, OR A GOVERNMENTAL, NON-U.S., CHURCH OR OTHER PLAN WHICH IS SUBJECT TO ANY
FEDERAL, STATE, LOCAL, NON-U.S. OR OTHER LAWS OR REGULATIONS THAT ARE SIMILAR TO SUCH PROVISIONS OF
ERISA OR THE CODE (“SIMILAR LAWS”), OR (II) THE PURCHASE, HOLDING AND DISPOSITION OF THIS SECURITY
WILL NOT CONSTITUTE A NON-EXEMPT PROHIBITED TRANSACTION UNDER SECTION 406 OF ERISA OR SECTION 4975
OF THE CODE OR, IN THE CASE OF A GOVERNMENTAL, NON-U.S., CHURCH OR OTHER PLAN, A SIMILAR VIOLATION
UNDER ANY APPLICABLE SIMILAR LAWS.**






 




			
	**	 	These paragraphs should be included only if the
Security is a Restricted Definitive Security or a Restricted Global Security.




Exhibit A-3









 










NABORS INDUSTRIES, INC.




9.25% SENIOR NOTE DUE 2019




			
	 	 	 
	No.                     	 	 
	CUSIP No.                     
	 	$                    






     Nabors Industries, Inc., a Delaware corporation (the “Company”), for value received promises
to pay to                                          or registered assigns, the principal sum of                      Dollars [or such
greater or lesser amount as is indicated on the Schedule of Exchanges of Interests in the Global
Securities on the other side of this Security*] on January 15, 2019.




Interest Payment Dates: January 15 and July 15




Record Dates: January 1 and July 1



     Reference is hereby made to the further provisions of this Security set forth on the reverse
hereof, which further provisions shall for all purposes have the same effect as if set forth at
this place.



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



Dated:



	 	 	 	 	 
	 	NABORS INDUSTRIES, INC.

 	 
	 	By:  	 	 
	 	 	 	 
	 	 	 	 
	 



	 	 	 	 	 
	Certificate of Authentication:	 	 
	 
	 	 	 	 
	WELLS FARGO BANK, NATIONAL ASSOCIATION,

as Trustee, certifies that this is one of
the
Securities

 referred to in the within-
mentioned Indenture.	 	 
	 
	 	 	 	 
	By:
	 	 	 	 
	 

	 	 

Authorized Signatory
	 	 








 




			
	*	 	This phrase should be included only if the Security is a Global Security.






Exhibit A-4









 











REVERSE OF SECURITY




NABORS INDUSTRIES, INC.




9.25% SENIOR NOTE DUE 2019




     This Security is one of a duly authorized issue of 9.25% Senior Notes due 2019 (the
“Securities”) of Nabors Industries, Inc., a Delaware corporation (the “Company”).



     1. Interest. The Company promises to pay interest on the principal amount of this Security at
a rate of 9.25% per annum until Maturity. The Company will pay interest semiannually on January 15
and July 15 of each year (each an “Interest Payment Date”), beginning July 15, 2009, or if any such
day is not a Business Day, on the next succeeding Business Day. Interest on this Security will
accrue from the most recent Interest Payment Date on which interest has been paid or, if no
interest has been paid, from January 12, 2009; provided that if there is no existing Default in the
payment of interest, and if this Security 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. Further, to the extent lawful, the Company shall pay interest
(including post-petition interest in any proceeding under any Bankruptcy Law) on overdue principal,
premium, if any, Additional Amounts, if any, and interest (without regard to any applicable grace
period), from time to time on demand at the rate then in effect on the Securities. 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 this Security (except defaulted
interest) to the Persons who are registered Holders of this Security at the close of business on
the record date next preceding the Interest Payment Date, even if this Security is canceled after
such record date and on or before such Interest Payment Date. The Holder must surrender this
Security to a Paying Agent to collect payments of principal and premium, if any. The Company will
pay the principal of and premium, if any, and Additional Amounts, if any, and interest on this
Security in money of the United States of America that at the time of payment is legal tender for
payment of public and private debts. Payments in respect of the Securities represented by a Global
Security (including principal, premium, if any, Additional Amounts, if any, and interest) will be
made by wire transfer of immediately available funds to the accounts specified by The Depository
Trust Company. The Company will make all payments in respect of a certificated Security (including
principal, premium, if any, Additional Amounts, if any, and interest) at the Corporate Trust Office
of the Trustee or at the office or agency of the Paying Agent maintained for such purpose in The
City of New York or, at its option, by mailing a check to the registered address of each Holder
thereof; provided, however, that payments on a certificated Security will be made by wire transfer
to a U.S. dollar account maintained by the payee with a bank in the United States if such Holder
elects payment by wire transfer by giving written notice to the Trustee or the Paying Agent to such
effect designating such account no later than 30 days immediately preceding the relevant due date
for payment (or such other date as the Trustee may accept in its discretion).



     3. Ranking and Guarantees. This Security is a senior unsecured obligation of the Company and
is guaranteed pursuant to guarantees (the “Guarantees”) by Nabors Industries Ltd.,



Exhibit A-5









 







a Bermuda exempted company (the “Guarantor”). The Guarantees are senior unsecured obligations
of the Guarantor. References herein to the Indenture or the Securities shall be deemed also to
refer to the Guarantees set forth in the Indenture except where the context otherwise requires.



     4. Optional Redemption; Purchases Upon Change of Control.



     (a) This Security is redeemable, in whole or in part, at any time, at the Company’s option, at
a Redemption Price equal to the greater of (1) 100% of the principal amount of this Security then
outstanding to be redeemed, or (2) the sum of the present values of the remaining scheduled
payments of principal and interest thereon (exclusive of interest accrued to the Redemption Date)
computed by discounting such payments to the Redemption Date on a semiannual basis (assuming a
360-day year consisting of twelve 30-day months) at a rate equal to the sum of 50 basis points plus
the Adjusted Treasury Rate on the third Business Day prior to the Redemption Date, as calculated by
an Independent Investment Banker, plus accrued and unpaid interest hereon up to, but not including,
the Redemption Date (subject to the right of the holder of record of this Security on the relevant
record date to receive interest on the relevant Interest Payment Date as provided in Section 10.04
of the Indenture).



     “Adjusted Treasury Rate” means, with respect to any Redemption Date, the yield, under the
heading which represents the average for the immediately preceding week, appearing in the most
recently published statistical release designated “H.15(519)” or any successor publication which is
published weekly by the Board of Governors of the Federal Reserve System and which establishes
yields on actively traded U.S. Treasury securities adjusted to constant maturity under the caption
“Treasury Constant Maturities” for the maturity corresponding to the Optional Redemption Comparable
Treasury Issue (if no maturity is within three months before or after the remaining term of this
Security, yields for the two published maturities most closely corresponding to the Optional
Redemption Comparable Treasury Issue will be determined and the Adjusted Treasury Rate will be
interpolated or extrapolated from such yields on a straight line basis, rounding to the nearest
month); or if such release (or any successor release) is not published during the week preceding
the calculation date or does not contain such yields, the rate per annum equal to the semiannual
equivalent yield to maturity of the Optional Redemption Comparable Treasury Issue, calculated using
a price for the Optional Redemption Comparable Treasury Issue (expressed as a percentage of its
principal amount) equal to the Optional Redemption Comparable Treasury Price for such redemption
date.



     “Independent Investment Banker” means Goldman, Sachs & Co., or if such firm is unwilling or
unable to serve as such, an independent investment and banking institution of national standing
appointed by the Trustee.



     “Optional Redemption Reference Treasury Dealer” means each of up to five dealers to be
selected by the Company and the Guarantor, and their respective successors; provided that if any of
the foregoing ceases to be, and has no affiliate that is, a primary U.S. governmental securities
dealer (a “Primary Treasury Dealer”), the Company and the Guarantor will substitute for it another
Primary Treasury Dealer.




Exhibit A-6











 





     “Optional Redemption Comparable Treasury Issue” means the U.S. Treasury security
selected by an Independent Investment Banker as having a maturity comparable to the remaining term
of the Securities to be redeemed that would be utilized, at the time of selection and in accordance
with customary financial practice, in pricing new issues of corporate debt securities of comparable
maturity to the remaining term of this Security, or, if, in the reasonable judgment of the
Independent Investment Banker, there is no such security, then the Optional Redemption Comparable
Treasury Issue will mean the U.S. Treasury security or securities selected by the Independent
Investment Banker as having an actual or interpolated maturity or maturities comparable to the
remaining term of this Security.



     “Optional Redemption Comparable Treasury Price” means (1) the average of five Optional
Redemption Reference Treasury Dealer Quotations for the applicable redemption date, after excluding
the highest and lowest Optional Redemption Reference Treasury Dealer Quotations, or (2) if the
Independent Investment Banker obtains fewer than five such Optional Redemption Reference Treasury
Dealer Quotations, the average of all such quotations.



     “Optional Redemption Reference Treasury Dealer Quotations” means, with respect to each
Optional Redemption Reference Treasury Dealer and any Redemption Date for this Security, the
average, as determined by the Independent Investment Banker of the bid and asked prices for the
Optional Redemption Comparable Treasury Issue (expressed in each case as a percentage of its
principal amount) quoted in writing to the Independent Investment Banker and the Trustee at 5:00
p.m., New York City time, on the third Business Day preceding such Redemption Date.



     (b) Upon the occurrence of a Change of Control Triggering Event, each Holder shall have the
right to require the Company to purchase all or any part (equal to $2,000 or an integral multiple
of $1,000 in excess thereof) of this Security, pursuant to a Change of Control Offer made in
accordance with Section 3.10 of the Indenture, at a purchase price in cash equal to 101% of the
principal amount hereof, plus accrued and unpaid interest hereon up to, but not including, the
Redemption Date (subject to the right of the holder of record of this Security on the relevant
record date to receive interest on the relevant Interest Payment Date as provided in Section 3.10
of the Indenture), except to the extent that the Company shall have exercised its right to redeem
this Security pursuant to the preceding paragraph (a).



     (c) If Holders of not less than 95% in aggregate principal amount of the outstanding
Securities validly tender and do not withdraw such Securities in a Change of Control Offer and the
Company, or any third party making a Change of Control Offer in lieu of the Company, purchases all
of the Securities validly tendered and not withdrawn by such holders, the Company shall have the
right, upon not less than 30 nor more than 60 days’ prior notice, given not more than 30 days
following such purchase pursuant to such Change of Control Offer, to redeem this Security and all
other Securities that remain outstanding following such purchase at a Redemption Price in cash
equal to 101% of the principal amount thereof, plus accrued and unpaid interest, if any, up to, but
not including, the Redemption Date (subject to the right of the holder of record of this Security
on the relevant record date to receive interest on the relevant Interest Payment Date as provided
in Section 10.04 of the Indenture).



Exhibit A-7









 





     5. Paying Agent and Registrar. Initially, Wells Fargo Bank, National Association (the
“Trustee”), the Trustee under the Indenture, will act as Paying Agent and Registrar. The Company
may change any Paying Agent, Registrar, co-registrar or additional paying agent without notice to
any Holder. The Guarantor or any of its Subsidiaries may act in any such capacity.



     6. Indenture. The Company issued this Security under an Indenture dated as of January 12,
2009 (as amended, supplemented or otherwise modified from time to time, the “Indenture”) among the
Company, the Guarantor and the Trustee. The terms of this Security include those stated in the
Indenture and those made part of the Indenture by reference to the Trust Indenture Act of 1939, as
amended (15 U.S. Code Sections 77aaa-77bbbb). This Security and the Guarantees are subject to all
such terms, and Holders are referred to the Indenture and the Trust Indenture Act for a statement
of such terms. To the extent any provision of this Security conflicts with the express provisions
of the Indenture, the provisions of the Indenture shall govern and be controlling (to the extent
permitted by law). The Securities are unsecured obligations of the Company. The Company initially
has issued $1,125,000,000 aggregate principal amount of Securities. The Company may issue
Additional Securities under the Indenture, provided that no Additional Securities may be issued at
a price that would cause such Additional Securities to have “original issue discount” within the
meaning of Section 1273 of the Code. Capitalized terms used but not defined in this Security have
the respective meanings given to such terms in the Indenture.



     7. Denominations, Transfer, Exchange. The Securities are issuable only in registered form
without coupons in minimum denominations of $2,000 and integral multiples of $1,000 in excess
thereof. The transfer of this Security may be registered and this Security 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 to pay any taxes and fees required
by law or permitted by the Indenture. The Registrar need not exchange or register the transfer of
this Security during the period between a record date and the corresponding Interest Payment Date.



     8. Persons Deemed Owners. The registered Holder of a Security shall be treated as its owner
for all purposes.



     9. Amendments and Waivers. Subject to certain exceptions and limitations, the Indenture or
this Security may be amended or supplemented with the consent of the Holders of at least a majority
in aggregate principal amount of the then outstanding Securities, and compliance in a particular
instance by the Company or the Guarantor with any provision of the Indenture with respect to the
Securities may be waived (other than certain provisions, including any continuing Default or Event
of Default in the payment of the principal of or premium, if any, Additional Amounts, if any, or
interest on the Securities) by the Holders of at least a majority in aggregate principal amount of
the Securities then outstanding in accordance with the terms of the Indenture. Without the consent
of any Holder, the Company, the Guarantor and the Trustee may amend or supplement the Indenture or
this Security to: (i) convey, transfer, assign, mortgage or pledge to the Trustee as security for
this Security any property or assets; (ii) to evidence the succession of another entity to the
Company or the Guarantor, or successive successions, and the assumption by the successor entity of
the covenants, agreements and obligations of the Company



Exhibit A-8









 







or the Guarantor pursuant to Section 4.01 or 4.02 of the Indenture; (iii) to add to the
covenants of the Company or the Guarantor such further covenants, restrictions, conditions or
provisions as the Company or the Guarantor and the Trustee shall consider to be for the protection
of the Holders of Securities, to surrender any right or power conferred upon the Company or the
Guarantor, and to make the occurrence, or the occurrence and continuance, of a default in any such
additional covenants, restrictions, conditions or provisions an Event of Default permitting the
enforcement of all or any of the several remedies provided in the Indenture, provided that in
respect of any such additional covenant, restriction, condition or provision such amendment or
supplement 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 an Event of Default or may limit the remedies available to the Trustee upon
such an Event of Default or may limit the right of the Holders of a majority in aggregate principal
amount of the Securities to waive such an Event of Default; (iv) to cure any ambiguity or omission
or to correct or supplement any provision contained in the Indenture or in any supplemental
indenture which may be defective or inconsistent with any other provision contained in the
Indenture or in any supplemental indenture, provided that no such action shall adversely affect the
interests of the Holders of this Security; (v) to provide for uncertificated Securities in addition
to or in place of certificated Securities, subject to any restrictions contained in the Indenture;
(vi) to provide for the issuance of Exchange Securities and related Guarantees or Additional
Securities and related Guarantees in accordance with the Indenture; (vii) to effect or maintain, or
otherwise comply with the requirements of the SEC in connection with, the qualification of the
Indenture under the TIA; (viii) to effect any provision of the Indenture; or (ix) to make any other
change that does not adversely affect the rights of any Holder



     The right of any Holder to participate in any consent required or sought pursuant to any
provision of the Indenture (and the obligation of the Company to obtain any such consent otherwise
required from such Holder) may be subject to the requirement that such Holder shall have been the
Holder of record of this Security as of a record date fixed by the Company in accordance with the
terms of the Indenture.



     10. Defaults and Remedies. Events of Default include: (i) default in the payment of the
principal of or premium, if any, on any Security at its Maturity, and continuance of such default
for a period of 10 days; or (ii) default in the payment of interest or Additional Amounts, if any,
upon any of the Securities when they become due and payable, and continuance of such default for a
period of 30 days; or (iii) default in the performance or observance, or breach, of any covenant of
the Company or the Guarantor in any Security or the Indenture (other than a covenant a default in
whose performance or whose breach is elsewhere in Section 5.01 of the Indenture specifically dealt
with), and continuance of such default or breach for a period of 90 days after there has been
given, by registered or certified mail, to the Company and the Guarantor by the Trustee or to the
Company, the Guarantor and the Trustee by the Holders of at least 25% in aggregate principal amount
of the outstanding Securities a written notice specifying such default or breach and requiring it
to be remedied and stating that such notice is a “Notice of Default” under the Indenture; or (iv)
certain events specified in the Indenture relating to the bankruptcy, insolvency or reorganization
of the Company or the Guarantor; or (vi) the Guarantees cease to be in full force and effect or
become unenforceable or invalid or are declared null and void (other than in accordance with the
terms of such Guarantees) or the Guarantor denies or disaffirms its obligations under such
Guarantees.



Exhibit A-9









 





     If an Event of Default (other than an Event of Default referred to in clause (iv) of the
preceding paragraph) with respect to this Security occurs and is continuing, the Trustee by notice
to the Company and the Guarantor, or by the Holders of at least 25% in aggregate principal amount
of the then outstanding Securities by written notice to the Company, the Guarantor and the Trustee,
may declare all of the then outstanding Securities to be due and payable immediately. If an Event
of Default referred to in such clause (iv) occurs, acceleration of all amounts payable on the
Securities shall be automatic. The amount due and payable upon the acceleration of any Security is
equal to 100% of the principal amount thereof plus premium, if any, Additional Amounts, if any, and
accrued and unpaid interest to the date of payment. Holders may not enforce the Indenture or this
Security except as provided in the Indenture. The Trustee does require indemnity reasonably
satisfactory to it before it enforces the Indenture or this Security. Subject to certain
limitations, Holders of a majority in aggregate principal amount of the then outstanding Securities
may direct the Trustee in its exercise of any trust or power. The Trustee may withhold from Holders
notice of any continuing default (except a default in payment of principal, premium, if any,
Additional Amounts, if any, or interest) if it determines that withholding notice is in their
interests. Each of the Company and the Guarantor must furnish an annual compliance certificate to
the Trustee.



     11. Additional Amounts. If the Company or the Guarantor is required to withhold or deduct any
amount for or on account of any Taxes for any payment made under or with respect to this Security,
it will pay any Additional Amounts.



     12. Discharge or Defeasance Prior to Maturity. The Indenture shall be satisfied and
discharged upon the payment of all of the Securities, and it may be satisfied and discharged
(except for certain obligations) upon the irrevocable deposit with the Trustee of cash, or U.S.
Government Obligations or a combination thereof sufficient for such payment. The Indenture also
contains provisions for defeasance of (i) the entire indebtedness of the Company on the Securities
and (ii) certain restrictive covenants and the related Events of Default, subject to compliance by
the Company with certain conditions set forth in the Indenture.



     13. Trustee Dealings with the Company and the Guarantor. The Trustee in its individual or any
other capacity may become the owner or pledgee of this Security and may otherwise deal with the
Company, the Guarantor or any of their Affiliates with the same rights it would have if it were not
the Trustee.



     14. No Recourse Against Others. A director, officer, employee or stockholder of the Company
or the Guarantor, as such, shall not have any liability for any obligations of the Company or the
Guarantor under this Security, the Guarantees or the Indenture or for any claim based on, in
respect of or by reason of such obligations or their creation. Each Holder by accepting this
Security waives and releases all such liability. The waiver and release are part of the
consideration for the issuance of this Security.



     15. Authentication. This Security shall not be entitled to any benefit under the Indenture or
be valid or obligatory for any purpose until authenticated by the manual signature of an authorized
signatory of the Trustee, which signature shall be conclusive evidence that this Security has been
authenticated under the Indenture.



Exhibit A-10









 





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



     17. 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).



     18. [Additional Rights of Holders of Restricted Global Securities and Restricted Definitive
Securities. In addition to the rights provided to Holders of Securities under the Indenture,
Holders of Securities will have the rights set forth in the Registration Rights Agreement, dated as
of January 12, 2009, among the Company, the Guarantor and the other parties named on the signature
pages thereof.]*



     19. Governing Law. The Indenture, this Security and the Guarantees shall be governed by and
construed in accordance with, the laws of the State of New York.



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


Nabors Industries, Inc.

515 West Greens Road, Suite 1200

Houston, Texas 77067

Attention: General Counsel

Telephone No.: (281) 874-0035

Telecopier No.: (281) 775-8431






 




			
	*	 	Delete for Exchange Security




Exhibit A-11









 










FORM OF NOTATION ON SECURITY

RELATING TO GUARANTEES




     The Guarantor (which term includes any successor Person in such capacity under the Indenture),
has fully, unconditionally and absolutely guaranteed, to the extent set forth in the Indenture and
subject to the provisions in the Indenture, the due and punctual payment of the principal of and
premium, if any, Additional Amounts, if any, and interest on these Securities and all other amounts
due and payable under the Indenture and these Securities by the Company.



     The obligations of the Guarantor to the Holders of Securities and to the Trustee pursuant to
the Guarantees and the Indenture are expressly set forth in Article IX of the Indenture and
reference is hereby made to the Indenture for the precise terms of the Guarantees.




	 	 	 	 	 
	 

	 	Guarantor:
	 
	 

	 	NABORS INDUSTRIES LTD.
	 
	 

	 	By:	 	 
	 

	 	 	 	 
	 

	 	Name:	 	 
	 

	 	 	 	 
	 

	 	Title:	 	 
	 

	 	 	 	 





Exhibit A-12









 






ASSIGNMENT FORM




     To assign this Security, fill in the form below: (I) or (we) assign and transfer this
Security to:                                                             



 




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




 




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



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




	 	 	 
	Date:
	 	 
	 

	 	 
	 
	 	 
	Your Signature:
	 	 
	 

	 	 
	 

	 	(Sign exactly as your name appears on the face of this Security)
	 
	 	 
	Signature Guarantee:
	 	 
	 

	 	 
	 

	 	(Participant in a Recognized Signature Guaranty Medallion Program)







Exhibit A-13









 








SCHEDULE OF EXCHANGES OF INTERESTS IN THE GLOBAL SECURITY**




     The following increases or decreases in the principal amount of this Global Security have been
made:



	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	Principal Amount of	 	 
	 	 	 	 	 	 	Global Security	 	 
	 	 	Amount of Decrease	 	Amount of Increase	 	Following Such	 	Signature of Authorized
	Date of	 	in Principal Amount	 	in Principal Amount	 	Decrease (or	 	Signatory, Trustee or Securities
	Transaction	 	of Global Security	 	of Global Security	 	Increase)	 	Custodian
	 
	 	 
	 	 
	 	 
	 	 
	 
	 	 
	 	 
	 	 
	 	 
	 
	 	 
	 	 
	 	 
	 	 
	 
	 	 
	 	 
	 	 
	 	 
	 
	 	 
	 	 
	 	 
	 	 







 




			
	**	 	This Schedule should be included only if the Security
is a Global Security.




Exhibit A-14









 










Option of Holder to Elect Purchase




     If you want to elect to have this Security purchased by the Company pursuant to Section 3.10
of the Indenture, check the box below:



     o



     If you want to elect to have only part of the Security purchased by the Company pursuant to
Section 3.10 of the Indenture, state the amount you elect to have purchased:



     $                                        



Date:                                         



	 	 	 	 	 
	 

	 	Your Signature:	 	 
	 

	 	 	 	 
	 

	 	 	 	(Sign exactly as your name appears on the face
of this Security)
	 
	 	 	 	 
	 

	 	Tax Identification No.:	 	 
	 

	 	 	 	 





Signature Guarantee:**                                                            






 




			
	** Participant in a recognized Signature Guarantee
Medallion Program (or other signature guarantor acceptable to the Trustee).




Exhibit A-15









 










EXHIBIT B




FORM OF CERTIFICATE OF TRANSFER




Nabors Industries, Inc.

515 West Greens Road, Suite 1200

Houston, Texas 77067

Attention: General Counsel




Wells Fargo Bank, National Association

201 Main Street, Suite 301

Fort Worth, Texas 76102

Attention: Corporate Trust Services




     Re: 9.25% Senior Notes due 2019



     Reference is hereby made to the Indenture, dated as of January 12, 2009 (the “Indenture”),
among Nabors Industries, Inc., as issuer (the “Company”), Nabors Industries Ltd., as guarantor (the
“Guarantor”), and Wells Fargo Bank, National Association, as trustee. Capitalized terms used but
not defined herein shall have the meanings given to them in the Indenture.



                          (the “Transferor”) owns and proposes to transfer the Security[ies] or
beneficial interest in such Security[ies] specified in Annex A hereto, in the principal amount of
$___(the “Transfer”), to ___(the “Transferee”), as further specified in Annex A
hereto. In connection with the Transfer, the Transferor hereby certifies that:



[CHECK ALL THAT APPLY]




     1. [ ] CHECK IF TRANSFEREE IS A QIB IN ACCORDANCE WITH RULE 144A. The Transfer is being
effected pursuant to and in accordance with Rule 144A under the U.S. Securities Act of 1933, as
amended (the “Securities Act”), and, accordingly, the Transferor hereby further certifies that the
beneficial interest or Definitive Security is being transferred to a Person that the Transferor
reasonably believes is purchasing the beneficial interest or Definitive Security for its own
account, or for one or more accounts with respect to which such Person exercises sole investment
discretion, and such Person and each such account is a “qualified institutional buyer” within the
meaning of Rule 144A in a transaction meeting the requirements of Rule 144A, and such Transfer is
in compliance with any applicable blue sky securities laws of any state of the United States. Upon
consummation of the proposed Transfer in accordance with the terms of the Indenture, the
transferred beneficial interest or Definitive Security will be subject to the restrictions on
transfer enumerated in the Private Placement Legend printed on the 144A Global Security or the
Restricted Definitive Security and in the Indenture and the Securities Act.



     2. [ ] CHECK IF TRANSFEREE WILL TAKE DELIVERY PURSUANT TO REGULATION S. The Transfer is being
effected pursuant to and in accordance with Rule 904 under the Securities Act and, accordingly, the
Transferor hereby further certifies that (i) the Transfer is not being made to a person in the
United States and (x) at the time the buy order was



Exhibit B-1









 







originated, the Transferee was outside the United States or such Transferor and any Person
acting on its behalf reasonably believed and believes that the Transferee was outside the United
States or (y) the transaction was executed in, on or through the facilities of a designated
offshore securities market and neither such Transferor nor any Person acting on its behalf knows
that the transaction was prearranged with a buyer in the United States, (ii) no directed selling
efforts have been made in contravention of the requirements of Rule 904(b) of Regulation S under
the Securities Act, (iii) the transaction is not part of a plan or scheme to evade the registration
requirements of the Securities Act and (iv) if the Transfer is being made prior to the expiration
of the Restricted Period, the Transfer is not being made to a U.S. Person or for the account or
benefit of a U.S. Person (other than an Initial Purchaser). Upon consummation of the proposed
transfer in accordance with the terms of the Indenture, the transferred beneficial interest or
Definitive Security will be subject to the restrictions on transfer enumerated in the Private
Placement Legend printed on the Regulation S Global Security or the Restricted Definitive Security
and in the Indenture and the Securities Act.



     3. [ ] CHECK IF TRANSFEREE WILL TAKE DELIVERY PURSUANT TO ANY PROVISION OF THE SECURITIES ACT
OTHER THAN RULE 144A OR REGULATION S. The Transfer is being effected in compliance with the
transfer restrictions applicable to beneficial interests in Restricted Global Securities and
Restricted Definitive Securities and pursuant to and in accordance with the Securities Act (other
than Rule 144A or Regulation S) and any applicable “blue sky” securities laws of any state of the
United States.



     4. [ ] CHECK AND COMPLETE IF TRANSFEREE WILL TAKE DELIVERY OF A BENEFICIAL INTEREST IN AN
UNRESTRICTED GLOBAL SECURITY OR OF AN UNRESTRICTED DEFINITIVE SECURITY:



          (a) [ ] CHECK IF TRANSFER IS PURSUANT TO RULE 144. (i) The Transfer is being effected pursuant
to and in accordance with Rule 144 under the Securities Act and in compliance with the transfer
restrictions contained in the Indenture and any applicable blue sky securities laws of any state of
the United States and (ii) the restrictions on transfer contained in the Indenture and the Private
Placement Legend are not required in order to maintain compliance with the Securities Act. Upon
consummation of the proposed Transfer in accordance with the terms of the Indenture, the
transferred beneficial interest or Definitive Security will no longer be subject to the
restrictions on transfer enumerated in the Private Placement Legend printed on the Restricted
Global Securities or Restricted Definitive Securities and in the Indenture.



          (b) [ ] CHECK IF TRANSFER IS PURSUANT TO REGULATION S. (i) The Transfer is being effected
pursuant to and in accordance with Rule 904 under the Securities Act and in compliance with the
transfer restrictions contained in the Indenture and any applicable blue sky securities laws of any
state of the United States and (ii) the restrictions on transfer contained in the Indenture and the
Private Placement Legend are not required in order to maintain compliance with the Securities Act.
Upon consummation of the proposed Transfer in accordance with the terms of the Indenture, the
transferred beneficial interest or Definitive Security will no longer be subject to the
restrictions on transfer enumerated in the Private Placement Legend printed on the Restricted
Global Securities or Restricted Definitive Securities and in the Indenture.



Exhibit B-2









 





          (c) [ ] CHECK IF TRANSFER IS PURSUANT TO OTHER EXEMPTION. (i) The Transfer is being effected
pursuant to and in compliance with an exemption from the registration requirements of the
Securities Act other than Rule 144 or Rule 904 and in compliance with the transfer restrictions
contained in the Indenture and any applicable blue sky securities laws of any state of the United
States and (ii) the restrictions on transfer contained in the Indenture and the Private Placement
Legend are not required in order to maintain compliance with the Securities Act. Upon consummation
of the proposed Transfer in accordance with the terms of the Indenture, the transferred beneficial
interest or Definitive Security will not be subject to the restrictions on transfer enumerated in
the Private Placement Legend printed on the Restricted Global Securities or Restricted Definitive
Securities and in the Indenture.



     This certificate and the statements contained herein are made for your benefit and the benefit
of the Company and the Guarantor.




	 	 	 	 	 
	 

	 	[Insert Name of Transferor]
	 
	 

	 	By:	 	 
	 

	 	 	 	 
	 

	 	Name:	 	 
	 

	 	 	 	 
	 

	 	Title:	 	 
	 

	 	 	 	 





Dated: ___, ___




Exhibit B-3









 





ANNEX A TO CERTIFICATE OF TRANSFER





	1.	 	The Transferor owns and proposes to transfer the following:
	 
	 	 	[CHECK ONE OF (a) OR (b)]






	 	(a)	 	[ ] a beneficial interest in a Global Security
(CUSIP [     ]), or
	 
	 	(b)	 	[ ] a Restricted Definitive Security (CUSIP [     ]).






	2.	 	After the Transfer the Transferee will hold:
	 
	 	 	[CHECK ONE]






	 	(a)	 	[ ] a beneficial interest in a Global Security (CUSIP [     ]); or
	 
	 	(b)	 	[ ] a Restricted Definitive Security (CUSIP [     ]); or
	 
	 	(c)	 	[ ] an Unrestricted Definitive Security (CUSIP [     ]), in accordance with the terms of
the Indenture.






Exhibit B-4









 








EXHIBIT C



FORM OF CERTIFICATE OF EXCHANGE




Nabors Industries, Inc.

515 West Greens Road, Suite 1200

Houston, Texas 77067

Attention: General Counsel




Wells Fargo Bank, National Association

201 Main Street, Suite 301

Fort Worth, Texas 76102

Attention: Corporate Trust Services




Attention: Corporate Trust Services




Re:     9.25% Senior Notes due 2019




          CUSIP 629568 AS51

          CUSIP U6295Y AB92




     Reference is hereby made to the Indenture, dated as of January 12, 2009 (the “Indenture”),
among Nabors Industries, Inc., as issuer (the “Company”), Nabors Industries Ltd., as guarantor (the
“Guarantor”), and Wells Fargo Bank, National Association, as trustee. Capitalized terms used but
not defined herein shall have the meanings given to them in the Indenture.



     ___(the “Owner”) owns and proposes to exchange the Security[ies] or beneficial
interest in such Security[ies] specified herein, in the principal amount of $___(the
“Exchange”). In connection with the Exchange, the Owner hereby certifies that:



     1. EXCHANGE OF RESTRICTED DEFINITIVE SECURITIES OR BENEFICIAL INTERESTS IN A RESTRICTED GLOBAL
SECURITY FOR UNRESTRICTED DEFINITIVE SECURITIES OR BENEFICIAL INTERESTS IN AN UNRESTRICTED GLOBAL
SECURITY:



          (a) [ ] CHECK IF EXCHANGE IS FROM BENEFICIAL INTEREST IN A RESTRICTED GLOBAL SECURITY TO
BENEFICIAL INTEREST IN AN UNRESTRICTED GLOBAL SECURITY. In connection with the Exchange of the
Owner’s beneficial interest in a Restricted Global Security for a beneficial interest in an
Unrestricted Global Security in an equal principal amount, the Owner hereby certifies (i) the
beneficial interest is being acquired for the Owner’s own account without transfer, (ii) such
Exchange has been effected in compliance with the transfer restrictions applicable to the Global
Securities and pursuant to and in accordance



 



1 For Securities sold in reliance on Rule 144A.

2 For Securities sold in reliance on Regulation S.


Exhibit C-1









 







with the Securities Act of 1933, as amended (the “Securities Act”), (iii) the restrictions on
transfer contained in the Indenture and the Private Placement Legend are not required in order to
maintain compliance with the Securities Act and (iv) the beneficial interest in an Unrestricted
Global Security is being acquired in compliance with any applicable “blue sky” securities laws of
any state of the United States.



          (b) [ ] CHECK IF EXCHANGE IS FROM BENEFICIAL INTEREST IN A RESTRICTED GLOBAL SECURITY TO
UNRESTRICTED DEFINITIVE SECURITY. In connection with the Exchange of the Owner’s beneficial
interest in a Restricted Global Security for an Unrestricted Definitive Security, the Owner hereby
certifies (i) the Definitive Security is being acquired for the Owner’s own account without
transfer, (ii) such Exchange has been effected in compliance with the transfer restrictions
applicable to the Restricted Global Securities and pursuant to and in accordance with the
Securities Act, (iii) the restrictions on transfer contained in the Indenture and the Private
Placement Legend are not required in order to maintain compliance with the Securities Act and (iv)
the Definitive Security is being acquired in compliance with any applicable “blue sky” securities
laws of any state of the United States.



          (c) [ ] CHECK IF EXCHANGE IS FROM RESTRICTED DEFINITIVE SECURITY TO BENEFICIAL INTEREST IN AN
UNRESTRICTED GLOBAL SECURITY. In connection with the Owner’s Exchange of a Restricted Definitive
Security for a beneficial interest in an Unrestricted Global Security, the Owner hereby certifies
(i) the beneficial interest is being acquired for the Owner’s own account without transfer, (ii)
such Exchange has been effected in compliance with the transfer restrictions applicable to
Restricted Definitive Securities and pursuant to and in accordance with the Securities Act, (iii)
the restrictions on transfer contained in the Indenture and the Private Placement Legend are not
required in order to maintain compliance with the Securities Act and (iv) the beneficial interest
is being acquired in compliance with any applicable “blue sky” securities laws of any state of the
United States.



          (d) [ ] CHECK IF EXCHANGE IS FROM RESTRICTED DEFINITIVE SECURITY TO UNRESTRICTED DEFINITIVE
SECURITY. In connection with the Owner’s Exchange of a Restricted Definitive Security for an
Unrestricted Definitive Security, the Owner hereby certifies (i) the Unrestricted Definitive
Security is being acquired for the Owner’s own account without transfer, (ii) such Exchange has
been effected in compliance with the transfer restrictions applicable to Restricted Definitive
Securities and pursuant to and in accordance with the Securities Act, (iii) the restrictions on
transfer contained in the Indenture and the Private Placement Legend are not required in order to
maintain compliance with the Securities Act and (iv) the Unrestricted Definitive Security is being
acquired in compliance with any applicable “blue sky” securities laws of any state of the United
States.



     2. EXCHANGE OF RESTRICTED DEFINITIVE SECURITIES OR BENEFICIAL INTERESTS IN RESTRICTED GLOBAL
SECURITIES FOR RESTRICTED DEFINITIVE SECURITIES OR BENEFICIAL INTERESTS IN RESTRICTED GLOBAL
SECURITIES:



          (a) [ ] CHECK IF EXCHANGE IS FROM BENEFICIAL INTEREST IN A RESTRICTED GLOBAL SECURITY TO
RESTRICTED DEFINITIVE SECURITY. In connection with the Exchange of the Owner’s beneficial interest
in a Restricted Global Security for a Restricted Definitive Security with an equal principal
amount, the Owner hereby certifies



Exhibit C-2









 







that the Restricted Definitive Security is being acquired for the Owner’s own account without
transfer. Upon consummation of the proposed Exchange in accordance with the terms of the Indenture,
the Restricted Definitive Security issued will continue to be subject to the restrictions on
transfer enumerated in the Private Placement Legend printed on the Restricted Definitive Security
and in the Indenture and the Securities Act.



          (b) [ ] CHECK IF EXCHANGE IS FROM RESTRICTED DEFINITIVE SECURITY TO BENEFICIAL INTEREST IN A
RESTRICTED GLOBAL SECURITY. In connection with the Exchange of the Owner’s Restricted Definitive
Security for a beneficial interest in the [CHECK ONE] [     ] 144A Global Security or [    ]
Regulation S Global Security in an equal principal amount, the Owner hereby certifies (i) the
beneficial interest is being acquired for the Owner’s own account without transfer and (ii) such
Exchange has been effected in compliance with the transfer restrictions applicable to the
Restricted Global Securities and pursuant to and in accordance with the Securities Act, and in
compliance with any applicable “blue sky” securities laws of any state of the United States. Upon
consummation of the proposed Exchange in accordance with the terms of the Indenture, the beneficial
interest issued will be subject to the restrictions on transfer enumerated in the Private Placement
Legend printed on the relevant Restricted Global Security and in the Indenture and the Securities
Act.



     This certificate and the statements contained herein are made for your benefit and the benefit
of the Company and the Guarantor.



	 	 	 	 	 
	 	 	[Insert Name of Owner]
	 
	 	 	 	 
	 

	 	By:	 	 
	 

	 	 	 	 
	 

	 	Name:	 	 
	 

	 	Title:	 	 






Dated:_________________, ___





Exhibit C-3