exv4w5



 





EXHIBIT 4.5




FORM OF SUBORDINATED INDENTURE





 



 




PARALLEL PETROLEUM CORPORATION




as Issuer




and




 






as Trustee




 






Indenture

Dated as of                     , ___




 






Subordinated Debt Securities




 






 



 



 









 








PARALLEL PETROLEUM CORPORATION




Reconciliation and tie between Trust Indenture Act of 1939 and Indenture, dated as of                     ,___




 








	 	 	 	 	 
	Section of	 	 	 	 
	Trust Indenture	 	 	 	Section(s) of
	Act of 1939	 	 	 	Indenture
	§ 310
	 	(a)(1)	 	7.10
	 
	 	(a)(2)	 	7.10
	 
	 	(a)(3)	 	Not Applicable
	 
	 	(a)(4)	 	Not Applicable
	 
	 	(a)(5)	 	7.10
	 
	 	(b)	 	7.08, 7.10
	§ 311
	 	(a)	 	7.11
	 
	 	(b)	 	7.11
	 
	 	(c)	 	Not Applicable
	§ 312
	 	(a)	 	2.07
	 
	 	(b)	 	11.03
	 
	 	(c)	 	11.03
	§ 313
	 	(a)	 	7.06
	 
	 	(b)	 	7.06
	 
	 	(c)	 	7.06
	 
	 	(d)	 	7.06
	§ 314
	 	(a)	 	4.03, 4.04
	 
	 	(b)	 	Not Applicable
	 
	 	(c)(1)	 	11.04
	 
	 	(c)(2)	 	11.04
	 
	 	(c)(3)	 	Not Applicable
	 
	 	(d)	 	Not Applicable
	 
	 	(e)	 	11.05
	§ 315
	 	(a)	 	7.01(b)
	 
	 	(b)	 	7.05
	 
	 	(c)	 	7.01(a)
	 
	 	(d)	 	7.01(c)
	 
	 	(d)(1)	 	7.01(c)(1)
	 
	 	(d)(2)	 	7.01(c)(2)
	 
	 	(d)(3)	 	7.01(c)(3)
	 
	 	(e)	 	6.11
	§ 316
	 	(a)(1)(A)	 	6.05
	 
	 	(a)(1)(B)	 	6.04
	 
	 	(a)(2)	 	Not Applicable
	 
	 	(a)(last sentence)	 	2.11
	 
	 	(b)	 	6.07
	§ 317
	 	(a)(1)	 	6.08
	 
	 	(a)(2)	 	6.09
	 
	 	(b)	 	2.06
	§ 318
	 	(a)	 	11.01








 




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


 






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TABLE OF CONTENTS




	 	 	 
	ARTICLE I
	 	DEFINITIONS AND INCORPORATION BY REFERENCE
	 
	 	 
	SECTION 1.01
	 	Definitions.
	SECTION 1.02
	 	Other Definitions.
	SECTION 1.03
	 	Incorporation by Reference of Trust Indenture Act.
	SECTION 1.04
	 	Rules of Construction.
	 
	 	 
	ARTICLE II
	 	THE SECURITIES
	 
	 	 
	SECTION 2.01
	 	Amount Unlimited; Issuable in Series.
	SECTION 2.02
	 	Denominations.
	SECTION 2.03
	 	Forms Generally.
	SECTION 2.04
	 	Execution, Authentication, Delivery and Dating.
	SECTION 2.05
	 	Registrar and Paying Agent.
	SECTION 2.06
	 	Paying Agent to Hold Money in Trust.
	SECTION 2.07
	 	Holder Lists.
	SECTION 2.08
	 	Transfer and Exchange.
	SECTION 2.09
	 	Replacement Securities.
	SECTION 2.10
	 	Outstanding Securities.
	SECTION 2.11
	 	Original Issue Discount,
Foreign-Currency Denominated and 
	 
	 	Treasury Securities.
	SECTION 2.12
	 	Temporary Securities.
	SECTION 2.13
	 	Cancellation.
	SECTION 2.14
	 	Payments; Defaulted Interest.
	SECTION 2.15
	 	Persons Deemed Owners.
	SECTION 2.16
	 	Computation of Interest.
	SECTION 2.17
	 	Global Securities; Book-Entry Provisions.
	 
	 	 
	ARTICLE III
	 	REDEMPTION
	 
	 	 
	SECTION 3.01
	 	Applicability of Article.
	SECTION 3.02
	 	Notice to the Trustee.
	SECTION 3.03
	 	Selection of Securities To Be Redeemed.
	SECTION 3.04
	 	Notice of Redemption.
	SECTION 3.05
	 	Effect of Notice of Redemption.
	SECTION 3.06
	 	Deposit of Redemption Price.
	SECTION 3.07
	 	Securities Redeemed or Purchased in Part.
	SECTION 3.08
	 	Purchase of Securities.
	SECTION 3.09
	 	Mandatory and Optional Sinking Funds.
	SECTION 3.10
	 	Satisfaction of Sinking Fund Payments with Securities.
	SECTION 3.11
	 	Redemption of Securities for Sinking Fund.
	 
	 	 
	ARTICLE IV
	 	COVENANTS
	 
	 	 
	SECTION 4.01
	 	Payment of Securities.
	SECTION 4.02
	 	Maintenance of Office or Agency.






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	SECTION 4.03
	 	SEC Reports; Financial Statements.
	SECTION 4.04
	 	Compliance Certificate.
	SECTION 4.05
	 	Corporate Existence.
	SECTION 4.06
	 	Waiver of Stay, Extension or Usury Laws.
	SECTION 4.07
	 	Additional Amounts.
	 
	 	 
	ARTICLE V
	 	SUCCESSORS
	 
	 	 
	SECTION 5.01
	 	Limitations on Mergers and Consolidations.
	SECTION 5.02
	 	Successor Person Substituted.
	 
	 	 
	ARTICLE VI
	 	DEFAULTS AND REMEDIES
	 
	 	 
	SECTION 6.01
	 	Events of Default.
	SECTION 6.02
	 	Acceleration.
	SECTION 6.03
	 	Other Remedies.
	SECTION 6.04
	 	Waiver of Defaults.
	SECTION 6.05
	 	Control by Majority.
	SECTION 6.06
	 	Limitations on Suits.
	SECTION 6.07
	 	Rights of Holders to Receive Payment.
	SECTION 6.08
	 	Collection Suit by Trustee.
	SECTION 6.09
	 	Trustee May File Proofs of Claim.
	SECTION 6.10
	 	Priorities.
	SECTION 6.11
	 	Undertaking for Costs.
	 
	 	 
	ARTICLE VII
	 	TRUSTEE
	 
	 	 
	SECTION 7.01
	 	Duties of Trustee.
	SECTION 7.02
	 	Rights of Trustee.
	SECTION 7.03
	 	May Hold Securities.
	SECTION 7.04
	 	Trustee’s Disclaimer.
	SECTION 7.05
	 	Notice of Defaults.
	SECTION 7.06
	 	Reports by Trustee to Holders.
	SECTION 7.07
	 	Compensation and Indemnity.
	SECTION 7.08
	 	Replacement of Trustee.
	SECTION 7.09
	 	Successor Trustee by Merger, etc.
	SECTION 7.10
	 	Eligibility; Disqualification.
	SECTION 7.11
	 	Preferential Collection of Claims Against the Company.
	 
	 	 
	ARTICLE VIII
	 	DISCHARGE OF INDENTURE
	 
	 	 
	SECTION 8.01
	 	Termination of the Company’s Obligations.
	SECTION 8.02
	 	Application of Trust Money.
	SECTION 8.03
	 	Repayment to Company.
	SECTION 8.04
	 	Reinstatement.
	 
	 	 
	ARTICLE IX
	 	SUPPLEMENTAL INDENTURES AND AMENDMENTS
	 
	 	 
	SECTION 9.01
	 	Without Consent of Holders.
	SECTION 9.02
	 	With Consent of Holders.






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	SECTION 9.03
	 	Compliance with Trust Indenture Act.
	SECTION 9.04
	 	Revocation and Effect of Consents.
	SECTION 9.05
	 	Notation on or Exchange of Securities.
	SECTION 9.06
	 	Trustee to Sign Amendments, etc.
	 
	 	 
	ARTICLE X
	 	SUBORDINATION OF SECURITIES
	 
	 	 
	SECTION 10.01
	 	Securities Subordinated to Senior Debt.
	SECTION 10.02
	 	No Payment on Securities in Certain Circumstances.
	SECTION 10.03
	 	Securities Subordinated to Prior Payment of All Senior Debt 
on Dissolution, Liquidation or Reorganization.
	SECTION 10.04
	 	Subrogation to Rights of Holders of Senior Debt.
	SECTION 10.05
	 	Obligations of the Company Unconditional.
	SECTION 10.06
	 	Trustee Entitled to Assume Payments Not Prohibited in Absence 
of Notice.
	SECTION 10.07
	 	Application by Trustee of Amounts Deposited with It.
	SECTION 10.08
	 	Subordination Rights Not Impaired by Acts or Omissions of the 
Company or Holders of Senior Debt.
	SECTION 10.09
	 	Trustee to Effectuate Subordination of Securities.
	SECTION 10.10
	 	Right of Trustee to Hold Senior Debt.
	SECTION 10.11
	 	Article X Not to Prevent Events of Default.
	SECTION 10.12
	 	No Fiduciary Duty of Trustee to Holders of Senior Debt.
	SECTION 10.13
	 	Article Applicable to Paying Agent.
	 
	 	 
	ARTICLE XI
	 	MISCELLANEOUS
	 
	 	 
	SECTION 11.01
	 	Trust Indenture Act Controls.
	SECTION 11.02
	 	Notices.
	SECTION 11.03
	 	Communication by Holders with Other Holders.
	SECTION 11.04
	 	Certificate and Opinion as to Conditions Precedent.
	SECTION 11.05
	 	Statements Required in Certificate or Opinion.
	SECTION 11.06
	 	Rules by Trustee and Agents.
	SECTION 11.07
	 	Legal Holidays.
	SECTION 11.08
	 	No Recourse Against Others.
	SECTION 11.09
	 	Governing Law.
	SECTION 11.10
	 	No Adverse Interpretation of Other Agreements.
	SECTION 11.11
	 	Successors.
	SECTION 11.12
	 	Severability.
	SECTION 11.13
	 	Counterpart Originals.
	SECTION 11.14
	 	Table of Contents, Headings, etc.






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     INDENTURE dated as of                     ,                      between Parallel Petroleum Corporation, a Delaware
corporation (the “Company”), and                                         , as trustee (the “Trustee”).



     Each party agrees as follows for the benefit of the other party and for the equal and ratable
benefit of the Holders of the Company’s unsecured subordinated debentures, notes or other evidences
of indebtedness (the “Securities”) to be issued from time to time in one or more series as provided
in this Indenture:



ARTICLE I

DEFINITIONS AND INCORPORATION BY REFERENCE




     SECTION 1.01 Definitions.



     “Additional Amounts” means any additional amounts required by the express terms of a Security
or by or pursuant to a Board Resolution, under circumstances specified therein or pursuant thereto,
to be paid by the Company with respect to certain taxes, assessments or other governmental charges
imposed on certain Holders and that are owing to such Holders.



     “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 shall mean 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.



     “Agent” means any Registrar or Paying Agent.



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



     “Board of Directors” means the Board of Directors of the Company or any committee thereof duly
authorized, with respect to any particular matter, to act by or on behalf of the Board of Directors
of the Company.



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



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



     “Capitalized Lease Obligation” of any Person means any obligation of such Person to pay rent
or other amounts under a lease of property, real or personal, that is required to be capitalized
for financial reporting purposes in accordance with GAAP; and the amount of such obligation shall
be the capitalized amount thereof determined in accordance with GAAP.



     “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; provided, however, that for
purposes of any provision contained herein which is required by the TIA, “Company” shall also mean
each other obligor (if any) on the Securities of a series.



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



     “Corporate Trust Office of the Trustee” means the office of the Trustee located at
                    , Attention:                    , and as may be located at such other address as the Trustee
may give notice to the Company.




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     “Debt” of any Person means, without duplication: (i) all indebtedness or obligations of such
Person for borrowed money (whether or not the recourse of the lender is to the whole of the assets
of such Person or only to a portion thereof); (ii) all obligations of such Person evidenced by
notes, bonds, debentures or other similar instruments; (iii) all obligations of such Person in
respect of letters of credit or other similar instruments (or reimbursement obligations with
respect thereto), other than standby letters of credit, bid or performance bonds and other
obligations issued by or for the account of such Person in the ordinary course of business; (iv)
all obligations of such Person to pay the deferred and unpaid purchase price of property or
services, except trade payables and accrued expenses incurred in the ordinary course of business;
(v) all Capitalized Lease Obligations of such Person; (vi) all Debt of others secured by a lien on
any asset of such Person, whether or not such Debt is assumed by such Person (provided that if the
obligations so secured have not been assumed in full by such Person or are not otherwise such
Person’s legal liability in full, then such obligations shall be deemed to be in an amount equal to
the greater of (a) the lesser of (1) the full amount of such obligations and (2) the fair market
value of such assets, as determined in good faith by the Board of Directors of such Person, which
determination shall be evidenced by a Board Resolution, and (b) the amount of obligations as have
been assumed by such Person or which are otherwise such Person’s legal liability); and (vii) all
Debt of others (other than endorsements in the ordinary course of business) guaranteed by such
Person to the extent of such guarantee.



     “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.



     “Depositary” means, with respect to the Securities of any series issuable or issued in whole
or in part in global form, the Person specified pursuant to Section 2.01 hereof as the initial
Depositary with respect to the Securities of such series, until a successor shall have been
appointed and become such pursuant to the applicable provision of this Indenture, and thereafter
“Depositary” shall mean or include such successor.



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



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



     “GAAP” means generally accepted accounting principles in the United States set forth in the
opinions and pronouncements of the Accounting Principles Board of the American Institute of
Certified Public Accountants and statements and pronouncements of the Financial Accounting
Standards Board or in such other statements by such other entity as may be approved by a
significant segment of the accounting profession of the United States, as in effect from time to
time.



     “Global Security” means a Security that is issued in global form in the name of the
Depositary, or its nominee with respect thereto.



     “Government Obligations” means, with respect to a series of Securities, direct obligations of
the government that issues the currency in which the Securities of the series are payable for the
payment of which the full faith and credit of such government is pledged, or obligations of a
Person controlled or supervised by and acting as an agency or instrumentality of such government,
the payment of which is unconditionally guaranteed as a full faith and credit obligation by such
government.



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



     “Indenture” means this Indenture as amended or supplemented from time to time pursuant to the
provisions hereof, and includes the terms of a particular series of Securities established as
contemplated by Section 2.01.



     “interest” means, with respect to an Original Issue Discount Security that by its terms bears
interest only after Maturity, interest payable after Maturity and when used with respect to any
Security, means all amounts of interest accruing on such Security, including any default interest.



2









 





     “Interest Payment Date,” when used with respect to any Security, shall have the meaning
assigned to such term in the Security as contemplated by Section 2.01.



     “Issue Date” means, with respect to Securities of a series, the date on which the Securities
of such series are originally issued under this Indenture.



     “Legal Holiday” means a Saturday, a Sunday or a day on which banking institutions in any of
The City of New York, New York; Midland, Texas or a Place of Payment are authorized or obligated by
law, regulation or executive order to remain closed.



     “Maturity” means, with respect to any Security, 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 thereof, or by declaration of acceleration, call for redemption or
otherwise.



     “Officer” means the Chairman of the Board, the President, any Vice Chairman of the Board, any
Vice President, the Chief Financial 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.



     “Opinion of Counsel” means a written opinion from legal counsel who is acceptable to the
Trustee. Such counsel may be an employee of or counsel to the Company or the Trustee.



     “Original Issue Discount Security” means any Security that provides for an amount less than
the principal amount thereof to be due and payable upon a declaration of acceleration of the
Maturity thereof pursuant to Section 6.02.



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



     “Place of Payment” means, with respect to the Securities of any series, the place or places
where the principal of, premium (if any) and interest on and any Additional Amounts with respect to
the Securities of that series are payable as specified in accordance with Section 2.01 subject to
the provisions of Section 4.02.



     “principal” of a Security means the principal of the Security plus, when appropriate, the
premium, if any, on the Security.



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



     “Redemption Price” means, with respect to any Security to be redeemed, the price at which it
is to be redeemed pursuant to this Indenture.



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



     “Rule 144A Securities” means Securities of a series designated pursuant to Section 2.01 as
entitled to the benefits of Section 4.03(b).



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     “SEC” means the Securities and Exchange Commission.



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



     “Security Custodian” means, with respect to Securities of a series issued in global form, the
Trustee for Securities of such series, as custodian with respect to the Securities of such series,
or any successor entity thereto.



     “Senior Debt” of the Company, unless otherwise provided with respect to the Securities of a
series as contemplated by Section 2.01, means (i) all Debt of the Company, whether currently
outstanding or hereafter created, incurred or assumed, unless, by the terms of the instrument
creating or evidencing such Debt or pursuant to which such Debt is outstanding, it is provided that
such Debt is not superior in right of payment to the Securities or to other Debt which is pari
passu with or subordinated to the Securities, and (ii) any modifications, refunding, deferrals,
renewals or extensions of any such Debt or any securities, notes or other evidences of Debt issued
in exchange for such Debt; provided that, unless otherwise provided with respect to the Securities
of a series as contemplated by Section 2.01, in no event shall “Senior Debt” include (a) Debt of
the Company owed or owing to any Subsidiary or any officer, director or employee of the Company or
any Subsidiary, (b) Debt to trade creditors or (c) any liability for taxes owed or owing by the
Company.



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



     “Subsidiary” of a Person means an Affiliate controlled by such Person directly, or indirectly
through one or more intermediaries.



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



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



     “United States” means the United States of America (including the States and the District of
Columbia) and its territories and possessions, which include Puerto Rico, the U.S. Virgin Islands,
Guam, American Samoa, Wake Island and the Northern Mariana Islands.



     “U.S. Government Obligations” means Government Obligations with respect to Securities payable
in Dollars.



     SECTION 1.02 Other Definitions.



	 	 	 	 	 
	Term	 	Defined in Section	 
	“Agent Members”

	 	 	2.17	 
	“Bankruptcy Custodian”

	 	 	6.01	 
	“Conversion Event”

	 	 	6.01	 
	“covenant defeasance”

	 	 	8.01	 
	“Event of Default”

	 	 	6.01	 
	“Exchange Rate”

	 	 	2.11	 
	“Judgment Currency”

	 	 	6.10	 
	“legal defeasance”

	 	 	8.01	 
	“mandatory sinking fund payment”

	 	 	3.09	 
	“optional sinking fund payment”

	 	 	3.09	 
	“Paying Agent”

	 	 	2.05	 






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	Term	 	Defined in Section	 
	“Payment Default”

	 	 	10.02	 
	“Registrar”

	 	 	2.05	 
	“Required Currency”

	 	 	6.10	 
	“Successor”

	 	 	5.01	 






     SECTION 1.03 Incorporation by Reference of Trust Indenture Act.



     Whenever this Indenture refers to a provision of the TIA, the provision is incorporated by
reference in and made a part of this Indenture (and if the Indenture is not qualified under the TIA
at that time, as if it were so qualified unless otherwise provided). 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.



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



     All terms used in this Indenture 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.



     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)	 	provisions apply to successive events and transactions; and
	 
	 	(6)	 	all references in this instrument to Articles and Sections are
references to the corresponding Articles and Sections in and of this
instrument.





ARTICLE II

THE SECURITIES




     SECTION 2.01 Amount Unlimited; Issuable in Series.



     The aggregate principal amount of Securities that may be authenticated and delivered under
this Indenture is unlimited.



5









 





     The Securities may be issued in one or more series. There shall be established in or pursuant
to a Board Resolution, and set forth, or determined in the manner provided, in an Officers’
Certificate of the Company or in a Company Order, or established in one or more indentures
supplemental hereto, prior to the issuance of Securities of any series:




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




     (2) if there is to be a limit, the limit upon the aggregate principal amount of the
Securities of the series that may be authenticated and delivered under this Indenture
(except for Securities authenticated and delivered upon registration of transfer of, or in
exchange for, or in lieu of, other Securities of the series pursuant to Section 2.08, 2.09,
2.12, 2.17, 3.07 or 9.05 and except for any Securities which, pursuant to Section 2.04 or
2.17, are deemed never to have been authenticated and delivered hereunder); provided,
however, that unless otherwise provided in the terms of the series, the authorized aggregate
principal amount of such series may be increased before or after the issuance of any
Securities of the series by a Board Resolution (or action pursuant to a Board Resolution) to
such effect;




     (3) whether any Securities of the series are to be issuable initially in temporary
global form and whether any Securities of the series are to be issuable in permanent global
form, as Global Securities or otherwise, and, if so, whether beneficial owners of interests
in any such Global Security may exchange such interests for Securities of such series and of
like tenor of any authorized form and denomination and the circumstances under which any
such exchanges may occur, if other than in the manner provided in Section 2.17, and the
initial Depositary and Security Custodian, if any, for any Global Security or Securities of
such series;




     (4) the manner in which any interest payable on a temporary Global Security on any
Interest Payment Date will be paid if other than in the manner provided in Section 2.14;




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




     (6) the rate or rates, or the method of determination thereof, at which the Securities
of the series shall bear interest, if any, whether and under what circumstances Additional
Amounts with respect to such Securities shall be payable, the date or dates from which such
interest shall accrue, the Interest Payment Dates on which such interest shall be payable
and the record date for the interest payable on any Securities on any Interest Payment Date,
or if other than provided herein, the Person to whom any interest on Securities of the
series shall be payable;




     (7) the place or places where, subject to the provisions of Section 4.02, the principal
of, premium (if any) and interest on and any Additional Amounts with respect to the
Securities of the series shall be payable;




     (8) the period or periods within which, the price or prices (whether denominated in
cash, securities or otherwise) at which and the terms and conditions upon which Securities
of the series may be redeemed, in whole or in part, at the option of the Company, if the
Company is to have that option, and the manner in which the Company must exercise any such
option, if different from those set forth herein;




     (9) the obligation, if any, of the Company to redeem, purchase or repay Securities of
the series pursuant to any sinking fund or analogous provisions or at the option of a Holder
thereof and the period or periods within which, the price or prices (whether denominated in
cash, securities or otherwise) at which and the terms and conditions upon which Securities
of the series shall be redeemed, purchased or repaid in whole or in part pursuant to such
obligation;




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



6









 






     (11) if other than Dollars, the currency or currencies (including composite currencies)
or the form, including equity securities, other debt securities (including Securities),
warrants or any other securities or property of the Company or any other Person, in which
payment of the principal of, premium (if any) and interest on and any Additional Amounts
with respect to the Securities of the series shall be payable;




     (12) if the principal of, premium (if any) or interest on or any Additional Amounts
with respect to the Securities of the series are to be payable, at the election of the
Company or a Holder thereof, in a currency or currencies (including composite currencies)
other than that in which the Securities are stated to be payable, the currency or currencies
(including composite currencies) in which payment of the principal of, premium (if any) and
interest on and any Additional Amounts with respect to Securities of such series as to which
such election is made shall be payable, and the periods within which and the terms and
conditions upon which such election is to be made;




     (13) if the amount of payments of principal of, premium (if any) and interest on and
any Additional Amounts with respect to the Securities of the series may be determined with
reference to any commodities, currencies or indices, values, rates or prices or any other
index or formula, the manner in which such amounts shall be determined;




     (14) if other than the entire principal amount thereof, the portion of the principal
amount of Securities of the series that shall be payable upon declaration of acceleration of
the Maturity thereof pursuant to Section 6.02;




     (15) any additional means of satisfaction and discharge of this Indenture and any
additional conditions or limitations to discharge with respect to Securities of the series
pursuant to Article VIII or any modifications of or deletions from such conditions or
limitations;




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




     (17) any restrictions or other provisions with respect to the transfer or exchange of
Securities of the series, which may amend, supplement, modify or supersede those contained
in this Article II;




     (18) if the Securities of the series are to be convertible into or exchangeable for
capital stock, other debt securities (including Securities), warrants, other equity
securities or any other securities or property of the Company or any other Person, at the
option of the Company or the Holder or upon the occurrence of any condition or event, the
terms and conditions for such conversion or exchange;




     (19) if the Securities of the series are to be entitled to the benefit of Section
4.03(b) (and accordingly constitute Rule 144A Securities), that fact;




     (20) any modifications to the definition of “Senior Debt,” to Article X or to the other
provisions regarding subordination with respect to the Securities of the series; and




     (21) any other terms of the series (which terms shall not be prohibited by the
provisions of this Indenture).



     All Securities of any one series shall be substantially identical except as to denomination
and except as may otherwise be provided in or pursuant to the Board Resolution referred to above
and (subject to Section 2.03) set forth, or determined in the manner provided, in the Officers’
Certificate or Company Order referred to above or in any such indenture supplemental hereto.



     If any of the terms of the series are established by action taken pursuant to a Board
Resolution, a copy of an appropriate record of such action, together with such Board Resolution,
shall be set forth in an Officers’ Certificate



7









 







or certified by the Secretary or an Assistant
Secretary of the Company and delivered to the Trustee at or prior to the delivery of the Officers’
Certificate or Company Order setting forth the terms of the series.



     The Securities shall be subordinated in right of payment to Senior Debt as provided in Article
X and/or as specified as contemplated pursuant to this Section 2.01.



     SECTION 2.02 Denominations.



     The Securities of each series shall be issuable in such denominations as shall be specified as
contemplated by Section 2.01. In the absence of any such provisions with respect to the Securities
of any series, the Securities of such series denominated in Dollars shall be issuable in
denominations of $1,000 and any integral multiples thereof.



     SECTION 2.03 Forms Generally.



     The Securities of each series shall be in fully registered form and in substantially such form
or forms (including temporary or permanent global form) established by or pursuant to a Board
Resolution or in one or more indentures supplemental hereto. The Securities may have notations,
legends or endorsements required by law, securities exchange rule, the Company’s certificate of
incorporation, bylaws or other similar governing documents, 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). A copy of the Board Resolution establishing the form or forms of
Securities of any series shall be delivered to the Trustee at or prior to the delivery of the
Company Order contemplated by Section 2.04 for the authentication and delivery of such Securities.



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



     The Trustee’s certificate of authentication shall be in substantially the following form:



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



	 	 	 	 	 
	 	                                                            , as Trustee

 	 
	 	By:  	 	 
	 	 	Authorized Signatory”. 	 
	 	 	 	 
	 




     SECTION 2.04 Execution, Authentication, Delivery and Dating.



     Two Officers of the Company shall sign the Securities on behalf of the Company by manual or
facsimile signature. If an Officer of the Company whose signature is on a Security no longer holds
that office at the time the Security is authenticated, 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. Notwithstanding the foregoing, if any Security has been authenticated and
delivered hereunder but never issued and sold by the Company, and the
Company delivers such Security to the Trustee for cancellation as provided in Section 2.13,
together with a written statement (which need not comply with Section 11.05 and need not be
accompanied by an Opinion of Counsel) stating that such Security has never been issued and sold by
the Company, for all purposes of this Indenture such Security shall be deemed never to have been
authenticated and delivered hereunder and shall never be entitled to the benefits of this
Indenture.



     At any time and from time to time after the execution and delivery of this Indenture, the
Company may deliver Securities of any series executed by the Company to the Trustee for
authentication, and the Trustee shall



8









 







authenticate and deliver such Securities for original issue
upon a Company Order for the authentication and delivery of such Securities or pursuant to such
procedures acceptable to the Trustee as may be specified from time to time by Company Order. Such
order shall specify the amount of the Securities to be authenticated, the date on which the
original issue of Securities is to be authenticated, the name or names of the initial Holder or
Holders and any other terms of the Securities of such series not otherwise determined. If provided
for in such procedures, such Company Order may authorize (1) authentication and delivery of
Securities of such series for original issue from time to time, with certain terms (including,
without limitation, the Maturity dates or dates, original issue date or dates and interest rate or
rates) that differ from Security to Security and (2) may authorize authentication and delivery
pursuant to oral or electronic instructions from the Company or its duly authorized agent, which
instructions shall be promptly confirmed in writing.



     If the form or terms of the Securities of the series have been established in or pursuant to
one or more Board Resolutions as permitted by Section 2.01, in authenticating such Securities, and
accepting the additional responsibilities under this Indenture in relation to such Securities, the
Trustee shall be entitled to receive (in addition to the Company Order referred to above and the
other documents required by Section 11.04), and (subject to Section 7.01) shall be fully protected
in relying upon:




     (a) an Officers’ Certificate setting forth the Board Resolution and, if applicable, an
appropriate record of any action taken pursuant thereto, as contemplated by the last
paragraph of Section 2.01; and




     (b) an Opinion of Counsel to the effect that:




     (i) the form of such Securities has been established in conformity with the
provisions of this Indenture;




     (ii) the terms of such Securities have been established in conformity with the
provisions of this Indenture; and




     (iii) 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 binding obligations of the Company,
enforceable against the Company in accordance with their terms, except as the
enforceability thereof may be limited by applicable bankruptcy, insolvency,
reorganization, moratorium, fraudulent conveyance or other similar laws in effect
from time to time affecting the rights of creditors generally, and the application
of general principles of equity (regardless of whether such enforceability is
considered in a proceeding in equity or at law).



     If all the Securities of any series are not to be issued at one time, it shall not be
necessary to deliver an Officers’ Certificate and Opinion of Counsel at the time of issuance of
each such Security, but such Officers’ Certificate and Opinion of Counsel shall be delivered at or
before the time of issuance of the first Security of the series to be issued.



     The Trustee shall not be required to authenticate such Securities if the issuance of such
Securities pursuant to this Indenture would affect the Trustee’s own rights, duties or immunities
under the Securities and this Indenture or otherwise in a manner not reasonably acceptable to the
Trustee.



     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 or an Affiliate of the Company.



     Each Security shall be dated the date of its authentication.



     SECTION 2.05 Registrar and Paying Agent.



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     The Company shall maintain an office or agency for each series of Securities where Securities
of such series may be presented for registration of transfer or exchange (“Registrar”) and an
office or agency where Securities of such series may be presented for payment (“Paying Agent”). The
Registrar shall keep a register of the Securities of such series 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 Company or any Subsidiary may act as Paying Agent
or Registrar.



     The Company initially appoints the Trustee as Registrar and Paying Agent.



     SECTION 2.06 Paying Agent to Hold Money in Trust.



     The Company shall require each Paying Agent other than the Trustee to agree in writing that
the Paying Agent will hold in trust for the benefit of Holders or the Trustee all money held by the
Paying Agent for the payment of principal of, premium, if any, or interest on or any Additional
Amounts with respect to Securities and will notify the Trustee of any default by the Company 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 or a Subsidiary) shall have no further liability for
the money. If the Company or a Subsidiary acts as Paying Agent, it shall segregate and hold in a
separate trust fund for the benefit of the Holders all money held by it as Paying Agent. Each
Paying Agent shall otherwise comply with TIA § 317(b).



     SECTION 2.07 Holder Lists.



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



     SECTION 2.08 Transfer and Exchange.



     Except as set forth in Section 2.17 or as may be provided pursuant to Section 2.01:



     When Securities of any series are presented to the Registrar with the request to register the
transfer of such Securities or to exchange such Securities for an equal principal amount of
Securities of the same series of like tenor and of other authorized denominations, the Registrar
shall register the transfer or make the exchange as requested if its requirements and the
requirements of this Indenture for such transactions are met; provided, however, that the
Securities presented or surrendered for registration of transfer or exchange shall be duly endorsed
or accompanied by a written instruction of transfer in form reasonably satisfactory to the
Registrar duly executed by the Holder thereof or by his attorney, duly authorized in writing, on
which instruction the Registrar can rely.



     To permit registrations of transfers and exchanges, the Company shall execute and the Trustee
shall authenticate Securities at the Registrar’s written request and submission of the Securities
or Global Securities. No service charge shall be made to a Holder for any registration of transfer
or exchange (except as otherwise expressly permitted herein), but the Company may require payment
of a sum sufficient to cover any transfer tax or similar governmental charge payable in connection
therewith (other than such transfer tax or similar governmental charge payable upon exchanges
pursuant to Section 2.12, 3.07 or 9.05). The Trustee shall authenticate Securities in accordance
with the provisions of Section 2.04. Notwithstanding any other provisions of this Indenture to the



10









 







contrary, the Company shall not be required to register the transfer or exchange of (a) any
Security selected for redemption in whole or in part pursuant to Article III, except the unredeemed
portion of any Security being redeemed in part, or (b) any Security during the period beginning 15
Business Days prior to the mailing of notice of any offer to repurchase Securities of the series
required pursuant to the terms thereof or of redemption of Securities of a series to be redeemed
and ending at the close of business on the day of mailing.



     SECTION 2.09 Replacement Securities.



     If any mutilated Security is surrendered to the Trustee, or if the Holder of a Security claims
that the Security has been destroyed, lost or stolen and the Company and the Trustee receive
evidence to their satisfaction of the destruction, loss or theft of such Security, the Company
shall issue and the Trustee shall authenticate a replacement Security of the same series if the
Trustee’s requirements are met. If any such mutilated, destroyed, lost or stolen Security has
become or is about to become due and payable, the Company in its discretion may, instead of issuing
a new Security, pay such Security. 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 that any of
them may suffer if a Security is replaced. The Company and the Trustee may charge a Holder for
their expenses in replacing a Security.



     Every replacement Security is an additional obligation of the Company.



     SECTION 2.10 Outstanding Securities.



     The Securities outstanding at any time are all the Securities authenticated by the Trustee
except for those canceled by it, those delivered to it for cancellation, those defeased pursuant to
Sections 8.01(c), those reductions in the interest in a Global Security effected by the Trustee
hereunder and those described in this Section 2.10 as not outstanding.



     If a Security is replaced pursuant to Section 2.09, it ceases to be outstanding unless the
Trustee receives proof satisfactory to it that the replaced Security is held by a bona fide
purchaser.



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



     A Security does not cease to be outstanding because the Company or an Affiliate of the Company
holds the Security.



     SECTION 2.11 Original Issue Discount, Foreign-Currency Denominated and Treasury Securities.



     In determining whether the Holders of the required principal amount of Securities have
concurred in any direction, amendment, supplement, waiver or consent, (a) the principal amount of
an Original Issue Discount Security shall be the principal amount thereof that would be due and
payable as of the date of such determination upon acceleration of the Maturity thereof pursuant to
Section 6.02, (b) the principal amount of a Security denominated in a foreign currency shall be the
Dollar equivalent, as determined by the Company by reference to the noon buying rate in The City of
New York for cable transfers for such currency, as such rate is certified for customs purposes by
the Federal Reserve Bank of New York (the “Exchange Rate”) on the date of original issuance of such
Security, of the principal amount (or, in the case of an Original Issue Discount Security, the
Dollar equivalent, as determined by the Company by reference to the Exchange Rate on the date of
original issuance of such Security, of the amount determined as provided in (a) above), of such
Security and (c) Securities owned by the Company or any other obligor upon the Securities or any
Affiliate of the Company or of such other obligor shall be disregarded,
except that, for the purpose of determining whether the Trustee shall be protected in relying upon
any such direction, amendment, supplement, waiver or consent, only Securities that a Responsible
Officer of the Trustee actually knows are so owned shall be so disregarded.



     SECTION 2.12 Temporary Securities.



     Until definitive Securities of any series 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,



11









 







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,
the temporary Securities shall in all respects be entitled to the same benefits under this
Indenture as definitive Securities.



     SECTION 2.13 Cancellation.



     The Company 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, payment or redemption or for credit against any sinking fund
payment. The Trustee shall cancel all Securities surrendered for registration of transfer,
exchange, payment, redemption, replacement or cancellation or for credit against any sinking fund.
Unless the Company shall direct in writing that canceled Securities be returned to it, after
written notice to the Company all canceled Securities held by the Trustee shall be disposed of in
accordance with the usual disposal procedures of the Trustee, and the Trustee shall maintain a
record of their disposal. The Company may not issue new Securities to replace Securities that have
been paid or that have been delivered to the Trustee for cancellation or for credit against any
sinking fund payment.



     SECTION 2.14 Payments; Defaulted Interest.



     Unless otherwise provided as contemplated by Section 2.01, interest (except defaulted
interest) on any Security that is payable, and is punctually paid or duly provided for, on any
Interest Payment Date shall be paid to the Persons who are registered Holders of that Security at
the close of business on the record date next preceding such Interest Payment Date, even if such
Securities are canceled after such record date and on or before such Interest Payment Date. The
Holder must surrender a Security to a Paying Agent to collect principal payments. Unless otherwise
provided with respect to the Securities of any series, the Company will pay the principal of,
premium (if any) and interest on and any Additional Amounts with respect to the Securities in
Dollars. Such amounts shall be payable at the offices of the Trustee or any Paying Agent, provided
that at the option of the Company, the Company may pay such amounts (1) by wire transfer with
respect to Global Securities or (2) by check payable in such money mailed to a Holder’s registered
address with respect to any Securities.



     If the Company defaults in a payment of interest on the Securities of any series, the Company
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 of such series and in
Section 4.01. 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 selected by the
Company, the Company (or the Trustee, in the name of and at the expense of the Company upon 20
days’ prior written notice from the Company setting forth such special record date and the interest
amount to be paid) 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 2.15 Persons Deemed Owners.



     The Company, 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, premium (if any) or interest on or any Additional Amounts with respect to such
Security and for all other purposes. None of the Company, the Trustee, any Agent or any
authenticating agent shall be affected by any notice to the contrary.



     SECTION 2.16 Computation of Interest.



     Except as otherwise specified as contemplated by Section 2.01 for Securities of any series,
interest on the Securities of each series shall be computed on the basis of a year comprising
twelve 30-day months.



     SECTION 2.17 Global Securities; Book-Entry Provisions.



     If Securities of a series are issuable in global form as a Global Security, as contemplated by
Section 2.01, then, notwithstanding clause (10) of Section 2.01 and the provisions of Section 2.02,
any such Global Security shall represent such of the outstanding Securities of such series as shall
be specified therein and may provide that it shall represent the aggregate amount of outstanding
Securities from time to time endorsed thereon and that the aggregate



12









 







amount of outstanding
Securities represented thereby may from time to time be reduced or increased, as appropriate, to
reflect exchanges, transfers or redemptions. Any endorsement of a Global Security to reflect the
amount, or any increase or decrease in the amount, of outstanding Securities represented thereby
shall be made by the Trustee (i) in such manner and upon instructions given by such Person or
Persons as shall be specified in such Security or in a Company Order to be delivered to the Trustee
pursuant to Section 2.04 or (ii) otherwise in accordance with written instructions or such other
written form of instructions as is customary for the Depositary for such Security, from such
Depositary or its nominee on behalf of any Person having a beneficial interest in such Global
Security. Subject to the provisions of Section 2.04 and, if applicable, Section 2.12, the Trustee
shall deliver and redeliver any Security in permanent global form in the manner and upon
instructions given by the Person or Persons specified in such Security or in the applicable Company
Order. With respect to the Securities of any series that are represented by a Global Security, the
Company authorizes the execution and delivery by the Trustee of a letter of representations or
other similar agreement or instrument in the form customarily provided for by the Depositary
appointed with respect to such Global Security. Any Global Security may be deposited with the
Depositary or its nominee, or may remain in the custody of the Trustee or the Security Custodian
therefor pursuant to a FAST Balance Certificate Agreement or similar agreement between the Trustee
and the Depositary. If a Company Order has been, or simultaneously is, delivered, any instructions
by the Company with respect to endorsement or delivery or redelivery of a Security in global form
shall be in writing but need not comply with Section 11.05 and need not be accompanied by an
Opinion of Counsel.



     Members of, or participants in, the Depositary (“Agent Members”) shall have no rights under
this Indenture with respect to any Global Security held on their behalf by the Depositary, or the
Trustee or the Security Custodian as its custodian, or under such Global Security, and the
Depositary may be treated by the Company, the Trustee or the Security Custodian and any agent of
the Company, the Trustee or the Security Custodian as the absolute owner of such Global Security
for all purposes whatsoever. Notwithstanding the foregoing, (i) the registered holder of a Global
Security of a series may grant proxies and otherwise authorize any Person, including Agent Members
and Persons that may hold interests through Agent Members, to take any action that a Holder of
Securities of such series is entitled to take under this Indenture or the Securities of such series
and (ii) nothing herein shall prevent the Company, the Trustee or the Security Custodian, or any
agent of the Company, the Trustee or the Security Custodian, from giving effect to any written
certification, proxy or other authorization furnished by the Depositary or shall impair, as between
the Depositary and its Agent Members, the operation of customary practices governing the exercise
of the rights of a beneficial owner of any Security.



     Notwithstanding Section 2.08, and except as otherwise provided pursuant to Section 2.01:
Transfers of a Global Security shall be limited to transfers of such Global Security in whole, but
not in part, to the Depositary, its successors or their respective nominees. Interests of
beneficial owners in a Global Security may be transferred in accordance with the rules and
procedures of the Depositary. Securities shall be transferred to all beneficial owners in exchange
for their beneficial interests in a Global Security if, and only if, either (1) the Depositary
notifies the Company that it is unwilling or unable to continue as Depositary for the Global
Security and a successor Depositary is not appointed by the Company within 90 days of such notice,
(2) an Event of Default has occurred with respect to such series and is continuing and the
Registrar has received a request from the Depositary to issue Securities in lieu of all or a
portion of the Global Security (in which case the Company shall deliver Securities within 30 days
of such request) or (3) the Company determines not to have the Securities represented by a Global
Security.



     In connection with any transfer of a portion of the beneficial interests in a Global Security
to beneficial owners pursuant to this Section 2.17, the Registrar shall reflect on its books and
records the date and a decrease in the principal amount of the Global Security in an amount equal
to the principal amount of the beneficial interests in the Global Security to be transferred, and
the Company shall execute, and the Trustee upon receipt of a Company Order
for the authentication and delivery of Securities shall authenticate and deliver, one or more
Securities of the same series of like tenor and amount.



     In connection with the transfer of all the beneficial interests in a Global Security to
beneficial owners pursuant to this Section 2.17, the Global Security shall be deemed to be
surrendered to the Trustee for cancellation, and the Company shall execute, and the Trustee shall
authenticate and deliver, to each beneficial owner identified by the Depositary in exchange for its
beneficial interests in the Global Security, an equal aggregate principal amount of Securities of
authorized denominations.



13









 





     Neither the Company nor the Trustee will have any responsibility or liability for any aspect
of the records relating to, or payments made on account of, Securities by the Depositary, or for
maintaining, supervising or reviewing any records of the Depositary relating to such Securities.
Neither the Company nor the Trustee shall be liable for any delay by the related Global Security
Holder or the Depositary in identifying the beneficial owners, and each such Person may
conclusively rely on, and shall be protected in relying on, instructions from such Global Security
Holder or the Depositary for all purposes (including with respect to the registration and delivery,
and the respective principal amounts, of the Securities to be issued).



     The provisions of the last sentence of the third paragraph of Section 2.04 shall apply to any
Global Security if such Global Security was never issued and sold by the Company and the Company
delivers to the Trustee the Global Security together with written instructions (which need not
comply with Section 11.05 and need not be accompanied by an Opinion of Counsel) with regard to the
cancellation or reduction in the principal amount of Securities represented thereby, together with
the written statement contemplated by the last sentence of the third paragraph of Section 2.04.



     Notwithstanding the provisions of Sections 2.03 and 2.14, unless otherwise specified as
contemplated by Section 2.01, payment of principal of, premium (if any) and interest on and any
Additional Amounts with respect to any Global Security shall be made to the Person or Persons
specified therein.



ARTICLE III

REDEMPTION




     SECTION 3.01 Applicability of Article.



     Securities of any series that are redeemable before their Stated Maturity shall be redeemable
in accordance with their terms and (except as otherwise specified as contemplated by Section 2.01
for Securities of any series) in accordance with this Article III.



     SECTION 3.02 Notice to the Trustee.



     If the Company elects to redeem Securities of any series pursuant to this Indenture, it shall
notify the Trustee of the Redemption Date and the principal amount of Securities of such series to
be redeemed. The Company shall so notify the Trustee at least 45 days before the Redemption Date
(unless a shorter notice shall be satisfactory to the Trustee) by delivering to the Trustee an
Officers’ Certificate stating that such redemption will comply with the provisions of this
Indenture and of the Securities of such series. Any such notice may be canceled at any time prior
to the mailing of such notice of such redemption to any Holder and shall thereupon be void and of
no effect.



     SECTION 3.03 Selection of Securities To Be Redeemed.



     If less than all the Securities of any series are to be redeemed (unless all of the Securities
of such series of a specified tenor are to be redeemed), the particular Securities to be redeemed
shall be selected not more than 60 days prior to the Redemption Date by the Trustee from the
outstanding Securities of such series (and tenor) not previously called for redemption, either pro
rata, by lot or by such other method as the Trustee shall deem fair and appropriate and that may
provide for the selection for redemption of portions (equal to the minimum authorized denomination
for Securities of that series or any integral multiple thereof) of the principal amount of
Securities of such series of a denomination larger than the minimum authorized denomination for
Securities of that series or of the principal amount of Global Securities of such series.



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



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



     SECTION 3.04 Notice of Redemption.



14









 





     Notice of redemption shall be given by first-class mail, postage prepaid, mailed not less than
30 nor more than 60 days prior to the Redemption Date, to each Holder of Securities to be redeemed,
at the address of such Holder appearing in the register of Securities maintained by the Registrar.



     All notices of redemption shall identify the Securities to be redeemed and shall state:




     (1) the Redemption Date;




     (2) the Redemption Price;




     (3) 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 of such Securities is to receive payment of the
Redemption Price upon surrender to the Paying Agent of the Securities redeemed;




     (4) if any Security is to be redeemed in part, the portion of the principal amount
thereof to be redeemed and that on and after the Redemption Date, upon surrender for
cancellation of such Security to the Paying Agent, a new Security or Securities in the
aggregate principal amount equal to the unredeemed portion thereof will be issued without
charge to the Holder;




     (5) that Securities called for redemption must be surrendered to the Paying Agent to
collect the Redemption Price and the name and address of the Paying Agent;




     (6) that the redemption is for a sinking or analogous fund, if such is the case; and




     (7) the CUSIP number, if any, relating to such Securities.



     Notice of redemption of Securities to be redeemed at the election of the Company shall be
given by the Company or, at the Company’s written request, by the Trustee in the name and at the
expense of the Company.



     SECTION 3.05 Effect of Notice of Redemption.



     Once notice of redemption is mailed, Securities called for redemption become due and payable
on the Redemption Date and at the Redemption Price. Upon surrender to the Paying Agent, such
Securities called for redemption shall be paid at the Redemption Price, but interest installments
whose maturity is on or prior to such Redemption Date will be payable on the relevant Interest
Payment Dates to the Holders of record at the close of business on the relevant record dates
specified pursuant to Section 2.01.



     SECTION 3.06 Deposit of Redemption Price.



     On or prior to 11:00 a.m., New York City time, on any Redemption Date, the Company shall
deposit with the Trustee or the Paying Agent (or, if the Company is acting as the Paying Agent,
segregate and hold in trust as provided in Section 2.06) an amount of money in same day funds
sufficient to pay the Redemption Price of, and (except if the Redemption Date shall be an Interest
Payment Date) accrued interest on and any Additional Amounts with respect to, the Securities or
portions thereof which are to be redeemed on that date, other than Securities or portions thereof
called for redemption on that date which have been delivered by the Company to the Trustee for
cancellation.



     If the Company complies with the preceding paragraph, then, unless the Company defaults in the
payment of such Redemption Price, interest on the Securities to be redeemed will cease to accrue on
and after the applicable Redemption Date, whether or not such Securities are presented for payment,
and the Holders of such Securities shall have no further rights with respect to such Securities
except for the right to receive the Redemption Price upon surrender of such Securities. If any
Security called for redemption shall not be so paid upon surrender thereof for redemption, the
principal, premium, if any, any Additional Amounts, and, to the extent lawful, accrued interest
thereon shall, until paid, bear interest from the Redemption Date at the rate specified pursuant to
Section 2.01 or provided in the Securities or, in the case of Original Issue Discount Securities,
such Securities’ yield to maturity.



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     SECTION 3.07 Securities Redeemed or Purchased in Part.



     Upon surrender to the Paying Agent of a Security to be redeemed in part, the Company shall
execute and the Trustee shall authenticate and deliver to the Holder of such Security without
service charge a new Security or Securities, of the same series and of any authorized denomination
as requested by such Holder in aggregate principal amount equal to, and in exchange for, the
unredeemed portion of the principal of the Security so surrendered that is not redeemed.



     SECTION 3.08 Purchase of Securities.



     Unless otherwise specified as contemplated by Section 2.01, the Company and any Affiliate of
the Company may, subject to applicable law, at any time purchase or otherwise acquire Securities in
the open market or by private agreement. Any such acquisition shall not operate as or be deemed for
any purpose to be a redemption of the indebtedness represented by such Securities. Any Securities
purchased or acquired by the Company may be delivered to the Trustee and, upon such delivery, the
indebtedness represented thereby shall be deemed to be satisfied. Section 2.13 shall apply to all
Securities so delivered.



     SECTION 3.09 Mandatory and Optional Sinking Funds.



     The minimum amount of any sinking fund payment provided for by the terms of Securities of any
series is herein referred to as a “mandatory sinking fund payment,” and any payment in excess of
such minimum amount provided for by the terms of Securities of any series is herein referred to as
an “optional sinking fund payment.” Unless otherwise provided by the terms of Securities of any
series, the cash amount of any sinking fund payment may be subject to reduction as provided in
Section 3.10. Each sinking fund payment shall be applied to the redemption of Securities of any
series as provided for by the terms of Securities of such series and by this Article III.



     SECTION 3.10 Satisfaction of Sinking Fund Payments with Securities.



     The Company may deliver outstanding Securities of a series (other than any previously called
for redemption) and may apply as a credit Securities of a series that have been redeemed either at
the election of the Company pursuant to the terms of such Securities or through the application of
permitted optional sinking fund payments pursuant to the terms of such Securities, in each case in
satisfaction of all or any part of any sinking fund payment with respect to the Securities of such
series required to be made pursuant to the terms of such series of Securities; provided that such
Securities have not been previously so credited. Such Securities shall be received and credited for
such purpose by the Trustee at the Redemption Price specified in such Securities for redemption
through operation of the sinking fund and the amount of such sinking fund payment shall be reduced
accordingly.



     SECTION 3.11 Redemption of Securities for Sinking Fund.



     Not less than 45 days prior (unless a shorter period shall be satisfactory to the Trustee) to
each sinking fund payment date for any series of Securities, the Company will deliver to the
Trustee an Officers’ Certificate of the Company specifying the amount of the next ensuing sinking
fund payment for that series pursuant to the terms of that series, the portion thereof, if any,
which is to be satisfied by payment of cash and the portion thereof, if any, which is to be
satisfied by delivery of or by crediting Securities of that series pursuant to Section 3.10 and
will also deliver or cause to be delivered to the Trustee any Securities to be so delivered.
Failure of the Company to timely deliver or cause to be delivered such Officers’ Certificate and
Securities specified in this paragraph, if any, shall not constitute a default but shall constitute
the election of the Company (i) that the mandatory sinking fund payment for
such series due on the next succeeding sinking fund payment date shall be paid entirely in cash
without the option to deliver or credit Securities of such series in respect thereof and (ii) that
the Company will make no optional sinking fund payment with respect to such series as provided in
this Section.



     If the sinking fund payment or payments (mandatory or optional or both) to be made in cash on
the next succeeding sinking fund payment date plus any unused balance of any preceding sinking fund
payments made in cash shall exceed $100,000 (or the Dollar equivalent thereof based on the
applicable Exchange Rate on the date of original issue of the applicable Securities) or a lesser
sum if the Company shall so request with respect to the Securities of any particular series, such
cash shall be applied on the next succeeding sinking fund payment date to



16









 







the redemption of
Securities of such series at the sinking fund redemption price together with accrued interest to
the date fixed for redemption. If such amount shall be $100,000 (or the Dollar equivalent thereof
as aforesaid) or less and the Company makes no such request then it shall be carried over until a
sum in excess of $100,000 (or the Dollar equivalent thereof as aforesaid) is available. Not less
than 30 days before each such sinking fund payment date, the Trustee shall select the Securities to
be redeemed upon such sinking fund payment date in the manner specified in Section 3.03 and cause
notice of the redemption thereof to be given in the name of and at the expense of the Company in
the manner provided in Section 3.04. Such notice having been duly given, the redemption of such
Securities shall be made upon the terms and in the manner stated in Sections 3.05, 3.06 and 3.07.



ARTICLE IV

COVENANTS




     SECTION 4.01 Payment of Securities.



     The Company shall pay the principal of, premium (if any) and interest on and any Additional
Amounts with respect to the Securities of each series on the dates and in the manner provided in
the Securities of such series, in this Indenture, and in any supplemental indenture hereto.
Principal, premium, interest and any Additional Amounts shall be considered paid on the date due if
the Paying Agent (other than the Company or a Subsidiary) holds on that date money deposited by the
Company designated for and sufficient to pay all principal, premium, interest and any Additional
Amounts then due.



     The Company shall pay interest (including post-petition interest in any proceeding under any
Bankruptcy Law) on overdue principal and premium (if any), at a rate equal to the then applicable
interest rate on the Securities to the extent lawful; and it shall pay interest (including
post-petition interest in any proceeding under any Bankruptcy Law) on overdue installments of
interest and any Additional Amount (without regard to any applicable grace period) at the same rate
to the extent lawful.



     SECTION 4.02 Maintenance of Office or Agency.



     The Company will maintain in each Place of Payment for any series of Securities an office or
agency (which may be an office of the Trustee, the Registrar or the Paying Agent) where Securities
of that series may be presented for registration of transfer or exchange, where Securities of that
series may be presented for payment and where notices and demands to or upon the Company in respect
of the Securities of that series and this Indenture may be served. Unless otherwise designated by
the Company by written notice to the Trustee, such office or agency shall be the office of the
Trustee in The City of           , which on the date hereof is located at                                            
        .
The Company will give prompt written notice to the Trustee of the location, and any change in the
location, of such office or agency. If at any time the Company shall fail to maintain any such
required office or agency or shall fail to furnish the Trustee with the address thereof, such
presentations, surrenders, notices and demands may be made or served at the Corporate Trust Office
of the Trustee.



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



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     SECTION 4.03 SEC Reports; Financial Statements.



          (a) If the Company is subject to the requirements of Section 13 or 15(d) of the Exchange Act,
the Company shall file with the Trustee, within 15 days after it files the same with the SEC,
copies of the annual reports and the information, documents and other reports (or copies of such
portions of any of the foregoing as the SEC may by rules and regulations prescribe) that the
Company is required to file with the SEC pursuant to Section 13 or 15(d) of the Exchange Act. If
this Indenture is qualified under the TIA, but not otherwise, the Company shall also comply with
the provisions of TIA § 314(a). Delivery of such reports, information and documents to the Trustee
shall be for informational purposes only, and the Trustee’s receipt thereof shall not constitute
constructive notice of any information contained therein or determinable from information contained
therein, including the Company’s compliance with any of its covenants hereunder (as to which the
Trustee is entitled to rely exclusively on Officers’ Certificates or certificates delivered
pursuant to Section 4.04).




          (b) If the Company is not subject to the requirements of Section 13 or 15(d) of the Exchange
Act, the Company shall furnish to all Holders of Rule 144A Securities and prospective purchasers of
Rule 144A Securities designated by the Holders of Rule 144A Securities, promptly upon their
request, the information required to be delivered pursuant to Rule 144A(d)(4) promulgated under the
Securities Act of 1933, as amended.




     SECTION 4.04 Compliance Certificate.



          (a) The Company shall deliver to the Trustee, within 120 days after the end of each fiscal
year of the Company, a statement signed by an Officer of the Company, which need not constitute an
Officers’ Certificate, complying with TIA § 314(a)(4) and stating that in the course of performance
by the signing Officer of his duties as such Officer of the Company he would normally obtain
knowledge of the keeping, observing, performing and fulfilling by the Company of its obligations
under this Indenture, and further stating that to the best of his knowledge the Company has kept,
observed, performed and fulfilled each and every covenant contained in this Indenture and is not in
default in the performance or observance of any of the terms, provisions and conditions 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 is taking or proposes
to take with respect thereto).




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




     SECTION 4.05 Corporate Existence.



     Subject to Article V, the Company shall do or cause to be done all things necessary to
preserve and keep in full force and effect its existence.



     SECTION 4.06 Waiver of Stay, Extension or Usury Laws.



     The Company covenants (to the extent that it may lawfully do so) that it will not at any time
insist upon, or plead, or in any manner whatsoever claim or take the benefit or advantage of, any
stay or extension law or any usury law or other law that would prohibit or forgive it from paying
all or any portion of the principal of 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 it may lawfully do so) the Company 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.



     SECTION 4.07 Additional Amounts.



     If the Securities of a series expressly provide for the payment of Additional Amounts, the
Company will pay to the Holder of any Security of such series Additional Amounts as expressly
provided therein. Whenever in this Indenture there is mentioned, in any context, the payment of the
principal of or any premium or interest on, or in respect of, any Security of any series or the net
proceeds received from the sale or exchange of any Security of any



18









 







series, such mention shall be deemed to include mention of the payment of Additional Amounts
provided for in this Section 4.07 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 4.07 and express
mention of the payment of Additional Amounts (if applicable) in any provisions hereof shall not be
construed as excluding Additional Amounts in those provisions hereof where such express mention is
not made.



ARTICLE V

SUCCESSORS




     SECTION 5.01 Limitations on Mergers and Consolidations.



     The Company shall not, in any transaction or series of transactions, consolidate with or merge
into any Person, or sell, lease, convey, transfer or otherwise dispose of all or substantially all
of its assets to any Person, unless:




     (1) either (a) the Company shall be the continuing Person or (b) the Person (if other
than the Company) formed by such consolidation or into which the Company is merged, or to
which such sale, lease, conveyance, transfer or other disposition shall be made
(collectively, the “Successor”), is organized and validly existing under the laws of the
United States, any political subdivision thereof or any State thereof or the District of
Columbia, and expressly assumes by supplemental indenture the due and punctual payment of
the principal of, premium (if any) and interest on and any Additional Amounts with respect
to all the Securities and the performance of the Company’s covenants and obligations under
this Indenture and the Securities;




     (2) immediately after giving effect to such transaction or series of transactions, no
Default or Event of Default shall have occurred and be continuing or would result therefrom;
and




     (3) the Company delivers to the Trustee an Officers’ Certificate and an Opinion of
Counsel, each stating that the transaction and such supplemental indenture comply with this
Indenture.



     SECTION 5.02 Successor Person Substituted.



     Upon any consolidation or merger of the Company or any sale, lease, conveyance, transfer or
other disposition of all or substantially all of the assets of the Company in accordance with
Section 5.01, the Successor formed by such consolidation or into or with which the Company is
merged or to which such sale, lease, conveyance, transfer or other disposition is made shall
succeed to, and be substituted for, and may exercise every right and power of the Company under
this Indenture and the Securities with the same effect as if such Successor had been named as the
Company herein and the predecessor Company, in the case of a sale, conveyance, transfer or other
disposition, shall be released from all obligations under this Indenture and the Securities.



ARTICLE VI

DEFAULTS AND REMEDIES




     SECTION 6.01 Events of Default.



     Unless either inapplicable to a particular series or specifically deleted or modified in or
pursuant to the supplemental indenture or Board Resolution establishing such series of Securities
or in the form of Security for such series, an “Event of Default,” wherever used herein with
respect to Securities of any series, occurs if:




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




     (2) the Company defaults in the payment of (A) the principal of any Security of that
series at its Maturity or (B) premium (if any) on any Security of that series when the same
becomes due and payable;



19









 






     (3) the Company defaults in the deposit of any sinking fund payment, when and as due by
the terms of a Security of that series, and such default continues for a period of 30 days;




     (4) the Company fails to comply with any of its other covenants or agreements in, or
provisions of, the Securities of such series or this Indenture (other than an agreement,
covenant or provision that has expressly been included in this Indenture solely for the
benefit of one or more series of Securities other than that series) which shall not have
been remedied within the specified period after written notice, as specified in the last
paragraph of this Section 6.01;




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




     (A) commences a voluntary case,




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




     (C) consents to the appointment of a Bankruptcy Custodian of it or for all or
substantially all of its property, or




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




     (6) a court of competent jurisdiction enters an order or decree under any Bankruptcy
Law that remains unstayed and in effect for 90 consecutive days and that:




     (A) is for relief against the Company as debtor in an involuntary case,




     (B) appoints a Bankruptcy Custodian of the Company or a Bankruptcy Custodian
for all or substantially all of the property of the Company, or




     (C) orders the liquidation of the Company; or




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



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



     The Trustee shall not be deemed to know or have notice of any Default or Event of Default
unless a Responsible Officer of the Trustee has actual knowledge thereof or unless written notice
of any event which is in fact such a Default or Event of Default is received by the Trustee at the
Corporate Trust Office of the Trustee, and such notice references the Securities and this
Indenture.



     When a Default is cured, it ceases.



     Notwithstanding the foregoing provisions of this Section 6.01, if the principal of, premium
(if any) or interest on or Additional Amounts with respect to any Security is payable in a currency
or currencies (including a composite currency) other than Dollars and such currency or currencies
are not available to the Company for making payment thereof due to the imposition of exchange
controls or other circumstances beyond the control of the Company (a “Conversion Event”), the
Company will be entitled to satisfy its obligations to Holders of the Securities by making such
payment in Dollars in an amount equal to the Dollar equivalent of the amount payable in such other
currency, as determined by the Company by reference to the Exchange Rate on the date of such
payment, or, if such rate is not then available, on the basis of the most recently available
Exchange Rate. Notwithstanding the foregoing provisions of this Section 6.01, any payment made
under such circumstances in Dollars where the required payment is in a currency other than Dollars
will not constitute an Event of Default under this Indenture.



     A Default under clause (4) or (7) of this Section 6.01 is not an Event of Default until the
Trustee notifies the Company, or the Holders of at least 25% in principal amount of the then
outstanding Securities of the series affected by such Default (or, in the case of a Default under
clause (4) of this Section 6.01, if outstanding Securities of other series are affected by such
Default, then at least 25% in principal amount of the then outstanding Securities so



20









 







affected) notify the Company and the Trustee, of the Default, and the Company fails to cure the
Default within 90 days after receipt of the notice. The notice must specify the Default, demand
that it be remedied and state that the notice is a “Notice of Default.”



     SECTION 6.02 Acceleration.



     If an Event of Default with respect to any Securities of any series at the time outstanding
(other than an Event of Default specified in clause (5) or (6) of Section 6.01) occurs and is
continuing, the Trustee by notice to the Company, or the Holders of at least 25% in principal
amount of the then outstanding Securities of the series affected by such Event of Default (or, in
the case of an Event of Default described in clause (4) of Section 6.01, if outstanding Securities
of other series are affected by such Event of Default, then at least 25% in principal amount of the
then outstanding Securities so affected) by notice to the Company and the Trustee, may declare the
principal of (or, if any such Securities are Original Issue Discount Securities, such portion of
the principal amount as may be specified in the terms of that series) and all accrued and unpaid
interest on all then outstanding Securities of such series or of all series, as the case may be, to
be due and payable. Upon any such declaration, the amounts due and payable on the Securities shall
be due and payable immediately. If an Event of Default specified in clause (5) or (6) of Section
6.01 hereof occurs, such amounts 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. The Holders of a
majority in principal amount of the then outstanding Securities of the series affected by such
Event of Default or all series, as the case may be, by written notice to the Trustee may rescind an
acceleration and its consequences (other than nonpayment of principal of or premium or interest on
or any Additional Amounts with respect to the Securities) if the rescission would not conflict with
any judgment or decree and if all existing Events of Default with respect to Securities of that
series (or of all series, as the case may be) have been cured or waived, except nonpayment of
principal, premium, interest or any Additional Amounts that has become due solely because of the
acceleration.



     SECTION 6.03 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, or premium, if any, or interest on the Securities or to
enforce the performance of any provision of the Securities 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 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 6.04 Waiver of Defaults.



     Subject to Sections 6.07 and 9.02, the Holders of a majority in principal amount of the then
outstanding Securities of any series or of all series (acting as one class) by notice to the
Trustee may waive an existing or past Default or Event of Default with respect to such series or
all series, as the case may be, and its consequences (including waivers obtained in connection with
a tender offer or exchange offer for Securities of such series or all series or a solicitation of
consents in respect of Securities of such series or all series, provided that in each case such
offer or solicitation is made to all Holders of then outstanding Securities of such series or all
series (but the terms of such offer or solicitation may vary from series to series)), except (1) a
continuing Default or Event of Default in the payment of the principal of, or premium, if any, or
interest on or any Additional Amounts with respect to any Security or (2) a continued Default in
respect of a provision that under Section 9.02 cannot be amended or supplemented 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 6.05 Control by Majority.



     With respect to Securities of any series, the Holders of a majority in principal amount of the
then outstanding Securities of such series may direct in writing 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 relating to or arising under an Event of Default described in clause (1), (2), (3)
or (7) of Section 6.01, and with respect to all Securities, the Holders of a



21









 







majority in principal amount of all the then outstanding Securities affected may direct in writing
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 not relating to or arising under such an Event of
Default. However, the Trustee 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 indemnification
satisfactory to it in its sole discretion from Holders directing the Trustee against all losses and
expenses caused by taking or not taking such action.



     SECTION 6.06 Limitations on Suits.



     Subject to Section 6.07 hereof, a Holder of a Security of any series may pursue a remedy with
respect to this Indenture or the Securities of such series only if:




     (1) the Holder gives to the Trustee written notice of a continuing Event of Default
with respect to such series;




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




     (3) such Holder or Holders offer to the Trustee indemnity satisfactory to the Trustee
against any loss, liability or expense;




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




     (5) during such 60-day period the Holders of a majority in principal amount of the
Securities of that series 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 6.07 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, and interest on and any Additional Amounts
with respect to the Security, on or after the respective due dates expressed in the Security, or to
bring suit 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 the Holder.



     SECTION 6.08 Collection Suit by Trustee.



     If an Event of Default specified in clause (1) or (2) of Section 6.01 hereof 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 for the amount of principal, premium (if any), interest and any
Additional Amounts remaining unpaid on the Securities of the series affected by the Event of
Default, and interest on overdue principal and premium, 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 6.09 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 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



22









 







proceedings relative to the Company or its 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 Bankruptcy Custodian in any such judicial proceeding is hereby authorized
by each Holder to make such payments to the Trustee, and in the event that the Trustee shall
consent to the making of such payments directly to the Holders, to pay to the Trustee any amount
due to it for the reasonable compensation, expenses, disbursements and advances of the Trustee, its
agents and counsel, and any other amounts due the Trustee under Section 7.07. To the extent that
the payment of any such compensation, expenses, disbursements and advances of the Trustee, its
agents and counsel, and any other amounts due the Trustee under Section 7.07 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.



     SECTION 6.10 Priorities.



     If the Trustee collects any money pursuant to this Article VI, it shall, subject to Article X,
pay out the money in the following order:




     First: to the Trustee for amounts due under Section 7.07;




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




     Third: to the Company.



     The Trustee, upon prior written notice to the Company, may fix record dates and payment dates
for any payment to Holders pursuant to this Article VI.



     To the fullest extent allowed under applicable law, if for the purpose of obtaining a judgment
against the Company in any court it is necessary to convert the sum due in respect of the principal
of, premium (if any) or interest on or Additional Amounts with respect to the Securities of any
series (the “Required Currency”) into a currency in which a judgment will be rendered (the
“Judgment Currency”), the rate of exchange used shall be the rate at which in accordance with
normal banking procedures the Trustee could purchase in The City of New York the Required Currency
with the Judgment Currency on the Business Day in The City of New York next preceding that on which
final judgment is given. Neither the Company nor the Trustee shall be liable for any shortfall nor
shall it benefit from any windfall in payments to Holders of Securities under this Section 6.10
caused by a change in exchange rates between the time the amount of a judgment against it is
calculated as above and the time the Trustee converts the Judgment Currency into the Required
Currency to make payments under this Section 6.10 to Holders of Securities, but payment of such
judgment shall discharge all amounts owed by the Company on the claim or claims underlying such
judgment.



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     SECTION 6.11 Undertaking for Costs.



     In any suit for the enforcement of any right or remedy under this Indenture or in any suit
against the Trustee for any action taken or omitted by it as a trustee, a court in its discretion
may require the filing by any party litigant in the suit of an undertaking to pay the costs of the
suit, and the court in its discretion may assess reasonable costs, including reasonable attorneys’
fees, against any party litigant in the suit, having due regard to the merits and good faith of the
claims or defenses made by the party litigant. This Section 6.11 does not apply to a suit by the
Trustee, a suit by a Holder pursuant to Section 6.07, or a suit by a Holder or Holders of more than
10% in principal amount of the then outstanding Securities of any series.



ARTICLE VII

TRUSTEE




     SECTION 7.01 Duties of Trustee.



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




          (b) Except during the continuance of an Event of Default with respect to the Securities of any
series:





     (1) 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




     (2) in the absence of bad faith on its part, the Trustee may conclusively rely, as to
the truth of the statements and the correctness of the opinions expressed therein, upon
certificates or opinions furnished to the Trustee and conforming to the requirements of this
Indenture. However, the Trustee shall examine such certificates and opinions to determine
whether, on their face, they appear to conform to the requirements of this Indenture.



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





     (1) this paragraph does not limit the effect of Section 7.01(b);




     (2) 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




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



          (d) Whether or not therein expressly so provided, every provision of this Indenture that in
any way relates to the Trustee is subject to the provisions of this Section 7.01.




          (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,
premium (if any) and interest on and Additional Amounts with respect to the Securities.




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     SECTION 7.02 Rights of Trustee.



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




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




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




          (d) The Trustee shall not be liable for any action it takes or omits to take in good faith
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 shall be sufficient if signed by an Officer of the Company.




     SECTION 7.03 May Hold Securities.



     The Trustee in its individual or any other capacity may become the owner or pledgee of
Securities and may otherwise deal with the Company or any of its Affiliates with the same rights it
would have if it were not Trustee. Any Agent may do the same with like rights and duties. However,
the Trustee is subject to Sections 7.10 and 7.11.



     SECTION 7.04 Trustee’s Disclaimer.



     The Trustee makes no representation as to the validity or adequacy of this Indenture or the
Securities, it shall not be accountable for the Company’s use of the proceeds from the Securities
or any money paid to the Company or upon the Company’s direction under any provision 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 7.05 Notice of Defaults.



     If a Default or Event of Default with respect to the Securities of any series occurs and is
continuing and it is known to the Trustee, the Trustee shall mail to Holders of Securities of such
series 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, premium (if any) and interest on
and Additional Amounts or any sinking fund installment with respect to the Securities of such
series, 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 of
Securities of such series.



     SECTION 7.06 Reports by Trustee to Holders.



     Within
60 days after                      ___ of each year after the execution of this Indenture, the
Trustee shall mail to Holders of a series and the Company a brief report dated as of such reporting
date that complies with TIA § 313(a); provided, however, that if no event described in TIA § 313(a)
has occurred within the twelve months preceding the reporting date with respect to a series, no
report need be transmitted to Holders of such series. The Trustee also shall comply with TIA §
313(b). The Trustee shall also transmit by mail all reports if and as required by TIA §§ 313(c) and
313(d).



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



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     SECTION 7.07 Compensation and Indemnity.



     The Company agrees to pay to the Trustee for its acceptance of this Indenture and services
hereunder such compensation as the Company and the Trustee shall from time to time agree in
writing. The Trustee’s compensation shall not be limited by any law on compensation of a trustee of
an express trust. The Company agrees 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 hereby indemnifies the Trustee and any predecessor Trustee against any and all
loss, liability, damage, claim or expense, including 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
the acceptance or administration of its duties under this Indenture, except as set forth in the
next following paragraph. The Trustee shall notify the Company promptly of any claim for which it
may seek indemnity. The Company shall defend the claim and the Trustee shall cooperate in the
defense. The Trustee may have separate counsel and the Company shall pay the reasonable fees and
expenses of such counsel. The Company need not pay for any settlement made without its consent.



     The Company shall not be obligated to reimburse any expense or indemnify against any loss or
liability incurred by the Trustee through the Trustee’s negligence or bad faith.



     To secure the payment obligations of the Company in this Section 7.07, 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, premium (if any) and interest on and any Additional Amounts
with respect to Securities of any series. Such lien and the Company’s obligations under this
Section 7.07 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 6.01(5) or (6) occurs, the expenses and the compensation for the services are intended to
constitute expenses of administration under any Bankruptcy Law.



     SECTION 7.08 Replacement of Trustee.



     A resignation or removal of the Trustee and appointment of a successor Trustee shall become
effective only upon the successor Trustee’s acceptance of appointment as provided in this Section
7.08.



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




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




     (2) 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;




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




     (4) 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, with respect to the Securities of one or more series, the Company shall promptly appoint a
successor Trustee or Trustees with respect to the Securities of that or those series (it being
understood that any such successor Trustee may be appointed with respect to the Securities of one
or more or all of such series and that at any time there shall be only one Trustee with respect to
the Securities of any particular series). Within one year after the successor Trustee with respect
to the Securities of any series takes office, the Holders of a majority in principal amount of the
Securities of such series then outstanding may appoint a successor Trustee to replace the successor
Trustee appointed by the Company.




26











 





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



     If the Trustee with respect to the Securities of a series fails to comply with Section 7.10,
any Holder of Securities of such series may petition any court of competent jurisdiction for the
removal of the Trustee and the appointment of a successor Trustee with respect to the Securities of
such series.



     In case of the appointment of a successor Trustee with respect to all Securities, each such
successor Trustee shall deliver a written acceptance of its appointment to the retiring Trustee and
to the Company. Thereupon the resignation or removal of the retiring Trustee shall become
effective, and the successor Trustee shall have all the rights, powers and duties of the retiring
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 7.07.



     In case of the appointment of a successor Trustee with respect to the Securities of one or
more (but not all) series, the Company, the retiring Trustee and each successor Trustee with
respect to the Securities of one or more (but not all) series shall execute and deliver an
indenture supplemental hereto in which each successor Trustee shall accept such appointment and
that (1) shall confer to each successor Trustee all the rights, powers and duties of the retiring
Trustee with respect to the Securities of that or those series to which the appointment of such
successor Trustee relates, (2) if the retiring Trustee is not retiring with respect to all
Securities, shall confirm that all the rights, powers and duties of the retiring Trustee with
respect to the Securities of that or those series as to which the retiring Trustee is not retiring
shall continue to be vested in the retiring Trustee and (3) shall add to or change any of the
provisions of this Indenture as shall be necessary to provide for or facilitate the administration
of the trusts hereunder by more than one Trustee. Nothing herein or in such supplemental indenture
shall constitute such Trustees co-trustees of the same trust, and each such Trustee shall be
trustee of a trust or trusts hereunder separate and apart from any trust or trusts hereunder
administered by any other such Trustee. Upon the execution and delivery of such supplemental
indenture, the resignation or removal of the retiring Trustee shall become effective to the extent
provided therein and each such successor Trustee shall have all the rights, powers and duties of
the retiring Trustee with respect to the Securities of that or those series to which the
appointment of such successor Trustee relates. On request of the Company or any successor Trustee,
such retiring Trustee shall transfer to such successor Trustee all property held by such retiring
Trustee as Trustee with respect to the Securities of that or those series to which the appointment
of such successor Trustee relates.



     Notwithstanding replacement of the Trustee or Trustees pursuant to this Section 7.08, the
obligations of the Company under Section 7.07 shall continue for the benefit of the retiring
Trustee or Trustees.



     SECTION 7.09 Successor Trustee by Merger, etc.



     Subject to Section 7.10, 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.



27









 





     SECTION 7.10 Eligibility; Disqualification.



     There shall at all times be a Trustee hereunder which shall be a corporation or banking or
trust company or association organized and doing business under the laws of the United States, 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.



     The Indenture shall always have a Trustee who satisfies the requirements of TIA §§ 310(a)(1),
310(a)(2) and 310(a)(5). The Trustee is subject to and shall comply with the provisions of TIA §
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 § 310(b).



     SECTION 7.11 Preferential Collection of Claims Against the Company.



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



ARTICLE VIII

DISCHARGE OF INDENTURE




     SECTION 8.01 Termination of the Company’s Obligations.



          (a) This Indenture shall cease to be of further effect with respect to the Securities of a
series (except that the Company’s obligations under Section 7.07, the Trustee’s and Paying Agent’s
obligations under Section 8.03 and the rights, powers, protections and privileges accorded the
Trustee under Article VII shall survive), and the Trustee, on demand of the Company, shall execute
proper instruments acknowledging the satisfaction and discharge of this Indenture with respect to
the Securities of such series, when:





          (1) either:




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




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




          (i) have become due and payable, or




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




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




          and, in the case of clause (i), (ii) or (iii) above, the Company has irrevocably
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 (x) cash in an amount, or (y)
Government Obligations, maturing as to principal and interest at such times and in such
amounts as will ensure the availability of cash in an amount or (z) a combination thereof,
which will be sufficient, in the opinion (in the case of clauses (y) and (z)) 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 the Securities of such series for principal and interest to the date of such deposit (in
the case of Securities which have become due and



28









 







payable) or for principal, premium, if any, and interest to the Stated Maturity or
Redemption Date, as the case may be; or




          (C) the Company has properly fulfilled such other means of satisfaction and
discharge as is specified, as contemplated by Section 2.01, to be applicable to the
Securities of such series;




          (2) the Company has paid or caused to be paid all other sums payable by it hereunder
with respect to the Securities of such series; and




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



          (b) Unless this Section 8.01(b) is specified as not being applicable to Securities of a series
as contemplated by Section 2.01, the Company may, at its option, terminate certain of its
obligations under this Indenture (“covenant defeasance”) with respect to the Securities of a series
if:





          (1) 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,
specifically pledged as security for and dedicated solely to the benefit of the Holders of
Securities of such series, (i) money in the currency in which payment of the Securities of
such series is to be made in an amount, or (ii) Government Obligations with respect to such
series, maturing as to principal and interest at such times and in such amounts as will
ensure the availability of money in the currency in which payment of the Securities of such
series is to be made in an amount or (iii) a combination thereof, that is sufficient, in the
opinion (in the case of clauses (ii) and (iii)) of a nationally recognized firm of
independent public accountants expressed in a written certification thereof delivered to the
Trustee, to pay the principal of and premium (if any) and interest on all Securities of such
series on each date that such principal, premium (if any) or interest is due and payable and
(at the Stated Maturity thereof or upon redemption as provided in Section 8.01(e)) 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 Government
Obligations to the payment of said principal, premium (if any) and interest with respect to
the Securities of such series as the same shall become due;




          (2) the Company has delivered to the Trustee an Officers’ Certificate stating that all
conditions precedent to satisfaction and discharge of this Indenture with respect to the
Securities of such series have been complied with, and an Opinion of Counsel to the same
effect;




          (3) no Default or Event of Default with respect to the Securities of such series shall
have occurred and be continuing on the date of such deposit;




          (4) the Company shall have delivered to the Trustee an Opinion of Counsel from a
nationally recognized counsel acceptable to the Trustee or a tax ruling to the effect that
the Holders 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 8.01(b) and will be
subject to U.S. Federal income tax on the same amount and in the same manner and at the same
times as would have been the case if such option had not been exercised;




          (5) the Company has complied with any additional conditions specified pursuant to
Section 2.01 to be applicable to the discharge of Securities of such series pursuant to this
Section 8.01; and




          (6) such deposit and discharge shall not cause the Trustee to have a conflicting
interest as defined in TIA § 310(b).



     In such event, this Indenture shall cease to be of further effect (except as set forth in this
paragraph), and the Trustee, on demand of the Company, shall execute proper instruments
acknowledging satisfaction and discharge under this Indenture. However, the Company’s obligations
in Sections 2.05, 2.06, 2.07, 2.08, 2.09, 4.01, 4.02, 7.07, 7.08 and 8.04, the Trustee’s and Paying
Agent’s obligations in Section 8.03 and the rights, powers, protections and privileges accorded the
Trustee under Article VII shall survive until all Securities of such series are no longer



29









 







outstanding. Thereafter, only the Company’s obligations in Section 7.07 and the Trustee’s and
Paying Agent’s obligations in Section 8.03 shall survive with respect to Securities of such series.



     After such irrevocable deposit made pursuant to this Section 8.01(b) and satisfaction of the
other conditions set forth herein, the Trustee upon request shall acknowledge in writing the
discharge of the Company’s obligations under this Indenture with respect to the Securities of such
series except for those surviving obligations specified above.



     In order to have money available on a payment date to pay principal of or premium (if any) or
interest on the Securities, the 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. Government
Obligations shall not be callable at the issuer’s option.



          (c) If the Company has previously complied or is concurrently complying with Section 8.01(b)
(other than any additional conditions specified pursuant to Section 2.01 that are expressly
applicable only to covenant defeasance) with respect to Securities of a series, then, unless this
Section 8.01(c) is specified as not being applicable to Securities of such series as contemplated
by Section 2.01, the Company may elect that its obligations to make payments with respect to
Securities of such series be discharged (“legal defeasance”), if:





          (1) no Default or Event of Default under clauses (5) and (6) of Section 6.01 hereof
shall have occurred at any time during the period ending on the 91st day after the date of
deposit contemplated by Section 8.01(b) (it being understood that this condition shall not
be deemed satisfied until the expiration of such period);




          (2) unless otherwise specified with respect to Securities of such series as
contemplated by Section 2.01, the Company has delivered to the Trustee an Opinion of Counsel
from a nationally recognized counsel acceptable to the Trustee to the effect referred to in
Section 8.01(b)(4) with respect to such legal defeasance, which opinion is based on (i) a
private ruling of the Internal Revenue Service addressed to the Company, (ii) a published
ruling of the Internal Revenue Service pertaining to a comparable form of transaction or
(iii) a change in the applicable federal income tax law (including regulations) after the
date of this Indenture;




          (3) the Company has complied with any other conditions specified pursuant to Section
2.01 to be applicable to the legal defeasance of Securities of such series pursuant to this
Section 8.01(c); and




          (4) the Company has delivered to the Trustee a Company Request requesting such legal
defeasance of the Securities of such series and an Officers’ Certificate stating that all
conditions precedent with respect to such legal defeasance of the Securities of such series
have been complied with, together with an Opinion of Counsel to the same effect.



     In such event, the Company will be discharged from its obligations under this Indenture and
the Securities of such series to pay principal of, premium (if any) and interest on and any
Additional Amounts with respect to Securities of such series, the Company’s obligations under
Sections 4.01 and 4.02 shall terminate with respect to such Securities, and the entire indebtedness
of the Company evidenced by such Securities shall be deemed paid and discharged.



          (d) If and to the extent additional or alternative means of satisfaction, discharge or
defeasance of Securities of a series are specified to be applicable to such series as contemplated
by Section 2.01, the Company may terminate any or all of its obligations under this Indenture with
respect to Securities of a series and any or all of its obligations under the Securities of such
series if it fulfills such other means of satisfaction and discharge as may be so specified, as
contemplated by Section 2.01, to be applicable to the Securities of such series.




          (e) If Securities of any series subject to subsections (a), (b), (c) or (d) of this Section
8.01 are to be redeemed prior to their Stated Maturity, whether pursuant to any optional redemption
provisions or in accordance with any mandatory or optional sinking fund provisions, the terms of
the applicable trust arrangement shall provide for such redemption, and the Company shall make such
arrangements as are reasonably satisfactory to the Trustee for the giving of notice of redemption
by the Trustee in the name, and at the expense, of the Company.




30









 








     SECTION 8.02 Application of Trust Money.



     The Trustee or a trustee satisfactory to the Trustee and the Company shall hold in trust money
or Government Obligations deposited with it pursuant to Section 8.01 hereof. It shall apply the
deposited money and the money from Government Obligations through the Paying Agent and in
accordance with this Indenture to the payment of principal of, premium (if any) and interest on and
any Additional Amounts with respect to the Securities of the series with respect to which the
deposit was made. Money and securities held in trust are not subject to Article X.



     SECTION 8.03 Repayment to Company.



     The Trustee and the Paying Agent shall promptly pay to the Company any excess money or
Government Obligations (or proceeds therefrom) held by them at any time upon the written request of
the Company.



     Subject to the requirements of any applicable abandoned property laws, the Trustee and the
Paying Agent shall pay to the Company upon written request any money held by them for the payment
of principal, premium (if any), interest or any Additional Amounts that remain unclaimed for two
years after the date upon which such payment shall have become due. After payment to the Company,
Holders entitled to the money must look to the Company for payment as 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 8.04 Reinstatement.



     If the Trustee or the Paying Agent is unable to apply any money or Government Obligations
deposited with respect to Securities of any series in accordance with Section 8.01 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
under this Indenture with respect to the Securities of such series and under the Securities of such
series shall be revived and reinstated as though no deposit had occurred pursuant to Section 8.01
until such time as the Trustee or the Paying Agent is permitted to apply all such money or
Government Obligations in accordance with Section 8.01; provided, however, that if the Company has
made any payment of principal of, premium (if any) or interest on or any Additional Amounts with
respect to any Securities because of the reinstatement of its obligations, the Company shall be
subrogated to the rights of the Holders of such Securities to receive such payment from the money
or Government Obligations held by the Trustee or the Paying Agent.



ARTICLE IX

SUPPLEMENTAL INDENTURES AND AMENDMENTS




     SECTION 9.01 Without Consent of Holders.



     The Company and the Trustee may amend or supplement this Indenture or the Securities or waive
any provision hereof or thereof without the consent of any Holder:




          (1) to cure any ambiguity, omission, defect or inconsistency;




          (2) to comply with Section 5.01;




          (3) to provide for uncertificated Securities in addition to or in place of certificated
Securities, or to provide for the issuance of bearer Securities (with or without coupons);




          (4) to provide any security for, or to add any guarantees of or additional obligors on,
any series of Securities;




          (5) to comply with any requirement in order to effect or maintain the qualification of
this Indenture under the TIA;




          (6) to add to the covenants of the Company for the benefit of the Holders of all or any
series of Securities (and if such covenants are to be for the benefit of less than all
series of Securities, stating that



31









 







such covenants are expressly being included solely for the benefit of such series), or
to surrender any right or power herein conferred upon the Company;




          (7) to add any additional Events of Default with respect to all or any series of the
Securities (and, if any Event of Default is applicable to less than all series of
Securities, specifying the series to which such Event of Default is applicable);




          (8) to change or eliminate any of the provisions of this Indenture; provided that any
such change or elimination shall become effective only when there is no outstanding Security
of any series created prior to the execution of such amendment or supplemental indenture
that is adversely affected in any material respect by such change in or elimination of such
provision;




          (9) to establish the form or terms of Securities of any series as permitted by Section
2.01;




          (10) to supplement any of the provisions of this Indenture to such extent as shall be
necessary to permit or facilitate the defeasance and discharge of any series of Securities
pursuant to Section 8.01; provided, however, that any such action shall not adversely affect
the interest of the Holders of Securities of such series or any other series of Securities
in any material respect; or




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



     Upon the request of the Company, accompanied by a Board Resolution, and upon receipt by the
Trustee of the documents described in Section 9.06, the Trustee shall, subject to Section 9.06,
join with the Company in the execution of any supplemental indenture authorized or permitted by the
terms of this Indenture and make any further appropriate agreements and stipulations that may be
therein contained.



     SECTION 9.02 With Consent of Holders.



     Except as provided below in this Section 9.02, the Company and the Trustee may amend or
supplement this Indenture with the written consent (including consents obtained in connection with
a tender offer or exchange offer for Securities of any one or more series or all series or a
solicitation of consents in respect of Securities of any one or more series or all series, provided
that in each case such offer or solicitation is made to all Holders of then outstanding Securities
of each such series (but the terms of such offer or solicitation may vary from series to series))
of the Holders of at least a majority in principal amount of the then outstanding Securities of all
series affected by such amendment or supplement (acting as one class).



     Upon the request of the Company, accompanied by a Board Resolution, 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 9.06, the Trustee shall, subject to Section 9.06, join with
the Company in the execution of such amendment or supplemental indenture.



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



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



     However, without the consent of each Holder of each Outstanding Security affected, an
amendment, supplement or waiver under this Section 9.02 may not:



32









 






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




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




          (3) reduce the principal of, any premium on or any mandatory sinking fund payment with
respect to, or change the Stated Maturity of, any Security or reduce the amount of the
principal of an Original Issue Discount Security that would be due and payable upon a
declaration of acceleration of the Maturity thereof pursuant to Section 6.02;




          (4) reduce the premium, if any, payable upon the redemption of any Security or change
the time at which any Security may or shall be redeemed;




          (5) change any obligation of the Company to pay Additional Amounts with respect to any
Security;




          (6) change the coin or currency or currencies (including composite currencies) in which
any Security or any premium, interest or Additional Amounts with respect thereto are
payable;




          (7) impair the right to institute suit for the enforcement of any payment of principal
of, premium (if any) or interest on or any Additional Amounts with respect to any Security
pursuant to Sections 6.07 and 6.08, except as limited by Section 6.06;




          (8) make any change in the percentage of principal amount of Securities necessary to
waive compliance with certain provisions of this Indenture pursuant to Section 6.04 or 6.07
or make any change in this sentence of Section 9.02;




          (9) modify the provisions of this Indenture with respect to the subordination of any
Security in a manner adverse to the Holder thereof; or




          (10) waive a continuing Default or Event of Default in the payment of principal of,
premium (if any) or interest on or Additional Amounts with respect to the Securities.



     An amendment under this Section 9.02 may not make any change that adversely affects the rights
under Article X of any holder of an issue of Senior Debt unless the holders of the issue pursuant
to its terms consent to the change.



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



     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 any Securities with respect to which such consent is required or sought as of a
date identified by the Company in a notice furnished to Holders in accordance with the terms of
this Indenture.



     After an amendment, supplement or waiver under this Section 9.02 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.



     SECTION 9.03 Compliance with Trust Indenture Act.



33









 





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



     SECTION 9.04 Revocation and Effect of Consents.



     Until an amendment, supplement or waiver becomes effective, a consent to it by a Holder 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 his or her Security or portion of a Security if the Trustee receives written notice of
revocation before a date and time therefor identified by the Company in a notice furnished to such
Holder in accordance with the terms of this Indenture or, if no such date and time shall be
identified, the date the amendment, supplement or waiver becomes effective. An amendment,
supplement or waiver becomes effective in accordance with its terms and thereafter binds every
Holder.



     The Company may, but shall not be obligated to, fix a record date (which need not comply with
TIA § 316(c)) for the purpose of determining the Holders entitled to consent to any amendment,
supplement or waiver or to take any other action under this Indenture. If a record date is fixed,
then notwithstanding the provisions of the immediately preceding paragraph, those Persons who were
Holders at 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. 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 Securities required hereunder for such amendment 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 (1) through (9) of Section 9.02 hereof. 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.



     SECTION 9.05 Notation on or Exchange of Securities.



     If an amendment or supplement changes the terms of an outstanding Security, the Company may
require the Holder of the Security to deliver it to the Trustee. The Trustee may place an
appropriate notation on the Security at the request of the Company regarding the changed terms and
return it to the Holder. Alternatively, if the Company 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.



     Securities of any series authenticated and delivered after the execution of any amendment or
supplement may, and shall if required by the Trustee, bear a notation in form approved by the
Trustee as to any matter provided for in such amendment or supplement.



     SECTION 9.06 Trustee to Sign Amendments, etc.



     The Trustee shall sign any amendment or supplement authorized pursuant to this Article if the
amendment or supplement does not adversely affect the rights, duties, liabilities or immunities of
the Trustee. If it does, the Trustee may, but need not, sign it. In signing or refusing to sign
such amendment or supplement, the Trustee shall be entitled to receive, and, subject to Section
7.01 hereof, shall be fully protected in relying upon, an Officers’ Certificate and an Opinion of
Counsel provided at the expense of the Company as conclusive evidence that such amendment or
supplement is authorized or permitted by this Indenture, that it is not inconsistent herewith, and
that it will be valid and binding upon the Company in accordance with its terms.



34









 





ARTICLE X

SUBORDINATION OF SECURITIES




     SECTION 10.01 Securities Subordinated to Senior Debt.



     The Company and each Holder of a Security of a series, by his acceptance thereof, agree that
(a) the payment of the principal of, premium (if any) and interest on and any Additional Amounts
with respect to each and all the Securities of such series and (b) any other payment in respect of
the Securities of such series, including on account of the acquisition or redemption of Securities
of such series by the Company, is subordinated, to the extent and in the manner provided in this
Article X, to the prior payment in full of all Senior Debt of the Company, whether outstanding at
the date of this Indenture or thereafter created, incurred, assumed or guaranteed, and that these
subordination provisions are for the benefit of the holders of Senior Debt.



     This Article X shall constitute a continuing offer to all Persons who, in reliance upon such
provisions, become holders of, or continue to hold, Senior Debt, and such provisions are made for
the benefit of the holders of Senior Debt, and such holders are made obligees hereunder and any one
or more of them may enforce such provisions.



     SECTION 10.02 No Payment on Securities in Certain Circumstances.



          (a) Unless otherwise provided with respect to the Securities of a series as contemplated by
Section 2.01, no payment shall be made by or on behalf of the Company on account of the principal
of, premium (if any) or interest on or any Additional Amounts with respect to the Securities of any
series or to acquire any Securities of such series (including any repurchases of Securities of such
series pursuant to the provisions thereof at the option of the Holder thereof) for cash or
property, or on account of any redemption provisions of Securities of such series, in the event of
default in payment of any principal of, premium (if any) or interest on any Senior Debt of the
Company when the same becomes due and payable, whether at maturity or at a date fixed for
prepayment or by acceleration of maturity or otherwise (a “Payment Default”), unless and until such
Payment Default has been cured or waived or otherwise has ceased to exist or such Senior Debt shall
have been discharged or paid in full.




          (b) In furtherance of the provisions of Section 10.01, in the event that, notwithstanding the
foregoing provisions of this Section 10.02, any payment or distribution of assets of the Company
shall be received by the Trustee, the Paying Agent or the Holders of Securities of any series at a
time when such payment or distribution was prohibited by the provisions of this Section 10.02,
then, unless such payment or distribution is no longer prohibited by this Section 10.02, such
payment or distribution (subject to the provisions of Section 10.07) shall be received and held in
trust by the Trustee, the Paying Agent or such Holder for the benefit of the holders of Senior Debt
of the Company, and shall be paid or delivered by the Trustee, the Paying Agent or such Holders, as
the case may be, to the holders of Senior Debt of the Company remaining unpaid or unprovided for or
their representative or representatives, or to the trustee or trustees under any indenture pursuant
to which any instruments evidencing such Senior Debt of the Company may have been issued, ratably,
according to the aggregate amounts remaining unpaid on account of such Senior Debt of the Company
held or represented by each, for application to the payment of all Senior Debt in full after giving
effect to all concurrent payments and distributions to or for the holders of such Senior Debt.




     SECTION 10.03 Securities Subordinated to Prior Payment of All Senior Debt on Dissolution,
Liquidation or Reorganization.



     Upon any distribution of assets of the Company or upon any dissolution, winding up, total or
partial liquidation or reorganization of the Company, whether voluntary or involuntary, in
bankruptcy, insolvency, receivership or similar proceeding or upon assignment for the benefit of
creditors:




          (1) the holders of all Senior Debt of the Company shall first be entitled to receive
payments in full before the Holders of Securities of any series are entitled to receive any
payment on account of the principal of, premium (if any) or interest on or any Additional
Amounts with respect to Securities of such series;




          (2) any payment or distribution of assets of the Company of any kind or character,
whether in cash, property or securities, to which the Holders of Securities of any series or
the Trustee on behalf of such



35









 







Holders would be entitled, except for the provisions of this Article X, shall be paid
by the liquidating trustee or agent or other Person making such a payment or distribution
directly to the holders of such Senior Debt or their representative, ratably according to
the respective amounts of Senior Debt held or represented by each, to the extent necessary
to make payment in full of all such Senior Debt remaining unpaid after giving effect to all
concurrent payments and distributions to the holders of such Senior Debt; and




          (3) in the event that, notwithstanding the foregoing, any payment or distribution of
assets of the Company of any kind or character, whether in cash, property or securities,
shall be received by the Trustee or the Holders of Securities of any series or any Paying
Agent (or, if the Company or any Subsidiary is acting as the Paying Agent, money for any
such payment or distribution shall be segregated or held in trust) on account of the
principal of, premium (if any) or interest on or any Additional Amounts with respect to the
Securities of such series before all Senior Debt of the Company is paid in full, such
payment or distribution (subject to the provisions of Section 10.07) shall be received and
held in trust by the Trustee or such Holder or Paying Agent for the benefit of the holders
of such Senior Debt, or their respective representatives, ratably according to the
respective amounts of such Senior Debt held or represented by each, to the extent necessary
to make payment as provided herein of all such Senior Debt remaining unpaid after giving
effect to all concurrent payments and distributions and all provisions therefor to or for
the holders of such Senior Debt, but only to the extent that as to any holder of such Senior
Debt, as promptly as practical following notice from the Trustee to the holders of such
Senior Debt that such prohibited payment has been received by the Trustee, Holder(s) or
Paying Agent (or has been segregated as provided above), such holder (or a representative
therefor) notifies the Trustee of the amounts then due and owing on such Senior Debt, if
any, held by such holder and only the amounts specified in such notices to the Trustee shall
be paid to the holders of such Senior Debt.



     SECTION 10.04 Subrogation to Rights of Holders of Senior Debt.



     Subject to the payment in full of all Senior Debt of the Company as provided herein, the
Holders of the Securities of any series shall be subrogated (to the extent of the payments or
distributions made to the holders of such Senior Debt pursuant to the provisions of this Article X)
to the rights of the holders of such Senior Debt to receive payments or distributions of assets of
the Company applicable to the Senior Debt until all amounts owing on the Securities of such series
shall be paid in full. For the purpose of such subrogation, no such payments or distributions to
the holders of such Senior Debt by the Company, or by or on behalf of the Holders of the Securities
of such series by virtue of this Article X, which otherwise would have been made to such Holders
shall, as between the Company and such Holders, be deemed to be payment by the Company or on
account of such Senior Debt, it being understood that the provisions of this Article X are and are
intended solely for the purpose of defining the relative rights of the Holders of the Securities of
a series, on the one hand, and the holders of such Senior Debt, on the other hand.



     If any payment or distribution to which the Holders of the Securities would otherwise have
been entitled but for the provisions of this Article X shall have been applied, pursuant to the
provisions of this Article X, to the payment of amounts payable under Senior Debt of the Company,
then such Holders shall be entitled to receive from the holders of such Senior Debt any payments or
distributions received by such holders of Senior Debt in excess of the amount sufficient to pay all
amounts payable under or in respect of such Senior Debt in full.



     SECTION 10.05 Obligations of the Company Unconditional.



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



36









 







Company referred to in this Article X, the Trustee, subject to the provisions of Sections 7.01 and
7.02, and the Holders of the Securities shall be entitled to rely upon any order or decree made by
any court of competent jurisdiction in which such dissolution, winding up, liquidation or
reorganization proceedings are pending, or a certificate of the liquidating trustee or agent or
other Person making any distribution to the Trustee or to such Holders for the purpose of
ascertaining the Persons entitled to participate in such distribution, the holders of the Senior
Debt and other Debt of the Company, the amount thereof or payable thereon, the amount or amounts
paid or distributed thereon and all other facts pertinent thereto or to this Article X so long as
such court has been apprised of the provisions of, or the order, decree or certificate makes
reference to, the provisions of this Article X.



     SECTION 10.06 Trustee Entitled to Assume Payments Not Prohibited in Absence of Notice.



     The Trustee shall not at any time be charged with knowledge of the existence of any facts that
would prohibit the making of any payment to or by the Trustee unless and until a Responsible
Officer of the Trustee or any Paying Agent shall have received, no later than two Business Days
prior to such payment, written notice thereof from the Company or from one or more holders of
Senior Debt or from any representative thereof and, prior to the receipt of any such written
notice, the Trustee, subject to the provisions of Sections 7.01 and 7.02, shall be entitled in all
respects conclusively to assume that no such fact exists.



     SECTION 10.07 Application by Trustee of Amounts Deposited with It.



     Amounts deposited in trust with the Trustee pursuant to and in accordance with Article VIII
shall be for the sole benefit of Holders of Securities of the series for the benefit of which such
amounts were deposited, and, to the extent allocated for the payment of Securities of such series,
shall not be subject to the subordination provisions of this Article X. Otherwise, any deposit of
assets with the Trustee or the Paying Agent (whether or not in trust) for the payment of principal
of, premium (if any) or interest on or any Additional Amounts with respect to any Securities of any
series shall be subject to the provisions of Sections 10.01, 10.02, 10.03 and 10.04; provided that
if prior to two Business Days preceding the date on which by the terms of this Indenture any such
assets may become distributable for any purpose (including, without limitation, the payment of
either principal of, premium (if any) or interest on or any Additional Amounts with respect to any
Security), a Responsible Officer of the Trustee or such Paying Agent shall not have received with
respect to such assets the written notice provided for in Section 10.06, then the Trustee or such
Paying Agent shall have full power and authority to receive such assets and to apply the same to
the purpose for which they were received, and shall not be affected by any notice to the contrary
that may be received by it on or after such date; and provided further that nothing contained in
this Article X shall prevent the Company from making, or the Trustee from receiving or applying,
any payment in connection with the redemption of Securities of a series if the first publication of
notice of such redemption (whether by mail or otherwise in accordance with this Indenture) has been
made, and the Trustee has received such payment from the Company, prior to the occurrence of any of
the contingencies specified in Section 10.02 or 10.03.



     SECTION 10.08 Subordination Rights Not Impaired by Acts or Omissions of the Company or Holders
of Senior Debt.



     No right of any present or future holders of any Senior Debt to enforce subordination
provisions contained in this Article X shall at any time in any way be prejudiced or impaired by
any act or failure to act on the part of the Company or by any act or failure to act, in good
faith, by any such holder, or by any noncompliance by the Company with the terms of this Indenture,
regardless of any knowledge thereof that any such holder may have or be otherwise charged with. The
holders of Senior Debt may extend, renew, modify or amend the terms of the Senior Debt or any
security therefor and release, sell or exchange such security and otherwise deal freely with the
Company, all without affecting the liabilities and obligations of the parties to this Indenture or
the Holders of the Securities of any series.



     SECTION 10.09 Trustee to Effectuate Subordination of Securities.



     Each Holder of a Security of any series by his acceptance thereof authorizes and expressly
directs the Trustee on his behalf to take such action as may be necessary or appropriate to
effectuate the subordination provisions contained in this Article X and to protect the rights of
the Holders of the Securities of such series pursuant to this Indenture, and appoints the Trustee
his attorney-in-fact for such purpose, including, in the event of any dissolution, winding up,
liquidation or reorganization of the Company (whether in bankruptcy, insolvency or receivership



37









 







proceedings or upon an assignment for the benefit of creditors of the Company), the filing of a
claim for the unpaid balance of his Securities in the form required in said proceedings and cause
said claim to be approved. If the Trustee does not file a proper claim or proof of debt in the form
required in such proceeding prior to 30 days before the expiration of the time to file such claim
or claims, then the holders of the Senior Debt or their representative is hereby authorized to have
the right to file and is hereby authorized to file an appropriate claim for and on behalf of the
Holders of Securities of such series. Nothing contained herein shall be deemed to authorize the
Trustee or the holders of Senior Debt or their representative to authorize or consent to or accept
or adopt on behalf of any Holder of Securities of any series any plan of reorganization,
arrangement, adjustment or composition affecting the Securities of such series or the rights of any
Holder thereof, or to authorize the Trustee or the holders of Senior Debt or their representative
to vote in respect of the claim of any Holder of the Securities of such series in any such
proceeding.



     SECTION 10.10 Right of Trustee to Hold Senior Debt.



     The Trustee in its individual capacity shall be entitled to all of the rights set forth in
this Article X in respect of any Senior Debt at any time held by it to the same extent as any other
holder of Senior Debt, and nothing in this Indenture shall be construed to deprive the Trustee of
any of its rights as such holder.



     SECTION 10.11 Article X Not to Prevent Events of Default.



     The failure to make a payment on account of principal of or premium (if any) or interest on
the Securities of any series by reason of any provision of this Article X shall not be construed as
preventing the occurrence of a Default or an Event of Default under Section 6.01 with respect to
Securities of such series or in any way prevent the Holders of the Securities of such series from
exercising any right hereunder other than the right to receive payment on the Securities of such
series.



     SECTION 10.12 No Fiduciary Duty of Trustee to Holders of Senior Debt.



     The Trustee shall not be deemed to owe any fiduciary duty to the holders of Senior Debt, and
shall not be liable to any such holders (other than for its willful misconduct or negligence) if it
shall in good faith mistakenly pay over or distribute to the Holders of the Securities of any
series or the Company or any other Person, cash, property or securities to which any holders of
Senior Debt shall be entitled by virtue of this Article X or otherwise. Nothing in this Section
10.12 shall affect the obligation of any other such Person to hold such payment for the benefit of,
and to pay such payment over to, the holders of Senior Debt or their representative.



     SECTION 10.13 Article Applicable to Paying Agent.



     In case at any time any Paying Agent other than the Trustee shall have been appointed by the
Company and be then acting hereunder, the term “Trustee” as used in this Article X shall in such
case (unless the context shall otherwise require) be construed as extending to and including such
Paying Agent within its meaning as fully for all intents and purposes as if such Paying Agent were
named in this Article X in addition to or in place of the Trustee; provided, however, that this
Section 10.13 shall not apply to the Company or any Subsidiary if the Company or such Subsidiary
acts as Paying Agent.



ARTICLE XI

MISCELLANEOUS




     SECTION 11.01 Trust Indenture Act Controls.



     If any provision of this Indenture limits, qualifies or conflicts with the duties imposed by
operation of TIA § 318(c), the imposed duties shall control.



38









 





     SECTION 11.02 Notices.



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


If to the Company:



Parallel Petroleum Corporation

1004 N. Big Spring, Suite 400

Midland, Texas 79701

Attn: Chief Financial Officer

Telephone: (432) 684-3727

Facsimile: (432) 684-3905



With a copy to each of:



Haynes and Boone, LLP

901 Main Street, Suite 3100

Dallas, TX 75202

Attn: W. Scott Wallace

Facsimile: (214) 200-0674



and



Lynch, Chappell & Alsup, P.C.

300 N. Marienfeld, Suite 700

Midland, TX 79701

Attn: Thomas W. Ortloff

Facsimile: (432) 683-8346




	 	 	 
	If to the Trustee:	 	 
	 	 	 
	 

	 	 
	 	 	 
	 

	 	 
	 	 	 
	 

	 	 






	 	 	 	 	 	 	 
	Attn:	 	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 	 	 
	Telephone:	 	 	 	 
	 	 	 	 	 

	 	 
	Facsimile:	 	 	 	 
	 	 	 	 	 

	 	 






     The Company or the Trustee by notice to the other 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 answered back, if telexed; when receipt acknowledged, if by facsimile; and
the next Business Day after timely delivery to the courier, if sent by overnight air courier
guaranteeing next day delivery.



     Any notice or communication to a Holder shall be mailed by first-class mail, 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.



39









 





     If a notice or communication is mailed in the manner provided above within the time
prescribed, it is duly given, whether or not the addressee receives it, except in the case of
notice to the Trustee, it is duly given only when received.



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



     All notices or communications, including without limitation notices to the Trustee or the
Company by Holders, shall be in writing, except as otherwise set forth herein.



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



     SECTION 11.04 Certificate and Opinion as to Conditions Precedent.



     Upon any request or application by the Company to the Trustee to take any action under this
Indenture, the Company shall, if requested by the Trustee, furnish to the Trustee at the expense of
the Company:




          (1) 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




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



     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 (other than a certificate provided pursuant to TIA § 314(a)(4)) shall comply
with the provisions of TIA § 314(e) and shall include:




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




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




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




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



     SECTION 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.



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     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.



     SECTION 11.08 No Recourse Against Others.



     A director, officer, employee, stockholder, partner or other owner of the Company or the
Trustee, as such, shall not have any liability for any obligations of the Company under the
Securities or for any obligations of the Company or the Trustee under 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 Securities.



     SECTION 11.09 Governing Law.



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



     SECTION 11.10 No Adverse Interpretation of Other Agreements.



     This Indenture may not be used to interpret another indenture, loan or debt agreement of the
Company or any Subsidiary. Any such indenture, loan or debt agreement may not be used to interpret
this Indenture.



     SECTION 11.11 Successors.



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



     SECTION 11.12 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, to the
fullest extent permitted by applicable law, not in any way be affected or impaired thereby.



     SECTION 11.13 Counterpart Originals.



     The parties may sign any number of copies of this Indenture. Each signed copy shall be an
original, but all of them together represent the same agreement.



     SECTION 11.14 Table of Contents, Headings, etc.



     The table of contents, cross-reference table and headings of the Articles and Sections of this
Indenture have been inserted for convenience of reference only, are not to be considered a part
hereof and shall in no way modify or restrict any of the terms or provisions hereof.



* * * * *




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



	 	 	 	 	 	 	 
	 	 	PARALLEL PETROLEUM CORPORATION	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 

Name:
	 	 
	 

	 	 	 	Title:	 	 
	 

	 

	 

	 

	 

	 

	 	 	 	,	 	 
	 	 	 	 	 
	 

	 	 	 	as Trustee	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 

Name:
	 	 
	 

	 	 	 	Title:	 	 







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