Document:

Exhibit 4.2

 

CONFORMED COPY

NOTE AGENCY AGREEMENT

TOYOTA MOTOR CREDIT CORPORATION

and

THE BANK OF NEW YORK MELLON (LUXEMBOURG) S.A.

as Registrar

and

THE BANK OF NEW YORK MELLON

as Transfer Agent

€50,000,000,000 Euro Medium Term Note Programme

of

TOYOTA MOTOR FINANCE (NETHERLANDS) B.V.

TOYOTA CREDIT CANADA INC.

TOYOTA FINANCE AUSTRALIA LIMITED (ABN 48 002 435 181)

TOYOTA MOTOR CREDIT CORPORATION

as Issuers

Dated  16 September 2011

  

 

  

TABLE OF CONTENTS

	
1.

	
Definitions and Interpretation

	
1

	
2.

	
Appointment of Registrar; Transfer Agent; Paying Agents

	
3

	
3.

	
Forms of Notes and Terms of Issue

	
5

	
4.

	
Issue of Global Registered Notes

	
7

	
5.

	
Issue of Definitive Registered Notes

	
8

	
6.

	
Registration, Transfers and Exchanges

	
9

	
7.

	
Special Provisions relating to Registered Global Notes

	
10

	
8.

	
Payments

	
11

	
9.

	
Mutilated, Destroyed, stolen or Lost Note Certificates

	
13

	
10.

	
Maturity, Redemption and Purchases

	
14

	
11.

	
Cancellation and Destruction

	
14

	
12.

	
Publication of Notices

	
14

	
13.

	
Limit on Liability

	
15

	
14.

	
Rights and Liabilities of Registrar, Transfer Agent and Paying Agents

	
15

	
15.

	
Commissions, Expenses and Indemnities

	
16

	
16.

	
Changes in Registrar, Transfer Agent and Paying Agents

	
17

	
17.

	
Meetings of Noteholders

	
19

	
18.

	
Further Issues

	
21

	
19.

	
Reports

	
21

	
20.

	
Forwarding of Notice

	
21

	
21.

	
Amendments

	
22

	
22.

	
Redenomination and Exchange

	
22

	
23.

	
Notices

	
22

	
24.

	
Deed Poll

	
23

	
25.

	
Contracts (Rights of Third Parties) Act 1999

	
24

	
26.

	
Governing Law and Submission to Jurisdiction

	
24

	
27.

	
Counterparts

	
24

	
28.

	
Headings

	
25

	
29.

	
Stamp and Other Taxes

	
25

 

	
SCHEDULE 1 FORM OF REGISTERED GLOBAL NOTE

	
27

	
SCHEDULE 2 FORM OF DEFINITIVE REGISTERED NOTE

	
37

	
SCHEDULE 3 FORM OF OPERATING AND ADMINISTRATIVE PROCEDURES MEMORANDUM

	
42

	
ANNEX  SETTLEMENT PROCEDURES – EUROCLEAR/CLEARSTREAM, LUXEMBOURG

	
44

	
SCHEDULE 4 ADDITIONAL DUTIES OF THE REGISTRAR AND THE TRANSFER AGENT

	
48

 

  

Page I

  

THIS NOTE AGENCY AGREEMENT is made as of 16 September 2011, among:

 

	
(1)

	
TOYOTA MOTOR CREDIT CORPORATION of 19001 South Western Avenue, EF12, Torrance, California 90501, U.S.A. (“TMCC”);

 

	
(2)

	
THE BANK OF NEW YORK MELLON (LUXEMBOURG) S.A. of Vertigo Building – Polaris, 2-4 rue Eugène Ruppert, L-2453 Luxembourg as registrar and transfer agent (along with its successors, the “Registrar”); and

 

	
(3)

	
THE BANK OF NEW YORK MELLON, acting through its London branch, One Canada Square, Canary Wharf, London E14 5AL, United Kingdom, as transfer agent and paying agent (along with its successors, the “Transfer Agent”).

 

WHEREAS:

 

	
(A)

	
TMCC, Toyota Motor Finance (Netherlands) B.V., Toyota Credit Canada Inc. and Toyota Finance Australia Limited (together, the “Issuers”) have entered into an Amended and Restated Programme Agreement dated 16 September 2011 with the Dealers named therein (as amended and supplemented or restated from time to time, the “Programme Agreement”) pursuant to which any of the Issuers may issue Euro Medium Term Notes (the “Notes”) in an aggregate nominal amount of up to €50,000,000,000 (or its equivalent in other currencies) outstanding at any time (the “Programme”) (including Notes issued prior to 28 September 2007 by TMCC under its U.S.$30,000,000,000 Euro Medium-Term Note Program last updated on 28 September 2006 (and further amended on 4 March 2011 with respect to certain Notes) which remain outstanding).

 

	
(B)

	
Under the Programme TMCC may issue Notes in bearer form or in registered form (“Registered Notes”).

 

	
(C)

	
Notes are issued under the Programme subject to and with the benefit of an amended and restated agency agreement dated 16 September 2011 (the “Programme Agency Agreement”) between the Issuers, the Transfer Agent as issuing agent, and (unless specified otherwise in the applicable Final Terms) paying agent and calculation agent (the “Agent”).

 

	
(D)

	
It is necessary for TMCC to appoint a registrar and a transfer agent and paying agent in relation to the Registered Notes issued by it under the Programme.

 

	
1.

	
DEFINITIONS AND INTERPRETATION

 

	
1.1

	
Terms and expressions defined in the Programme Agreement or the Programme Agency Agreement or the Conditions or used in the applicable Final Terms shall have the same meanings in this Agreement, except where the context requires otherwise.

 

	
1.2

	
Without prejudice to the foregoing:

 

“Clearing System” means Euroclear, Clearstream, Luxembourg or any additional or alternative clearing system approved by TMCC, the Registrar and the Transfer Agent, as indicated in the applicable Final Terms.

 

“Definitive Registered Note” means a Registered Note issued in definitive form substantially in the form appended to this Agreement as Schedule 2.

 

  

 

  

“Eurosystem-eligible Note” means a Registered Note which is intended to be held in a manner which would allow Eurosystem eligibility, as stated in the applicable Final Terms.

 

“Noteholders” means the several persons who are for the time being holders of outstanding Registered Notes, being the several persons whose names are entered in the register of holders of such Notes as the holders thereof save that, in respect of Registered Notes of any Series, for so long as such Notes or any part thereof are represented by a Registered Global Note, each person who is for the time being shown in the records of the applicable Clearing System as the holder of a particular nominal amount of such Notes (other than a clearing system (including Clearstream, Luxembourg and Euroclear) that is itself an account holder of the other applicable Clearing System for a Series of Notes) (in which regard any certificate or other document issued by the applicable Clearing System as to the nominal amount of such Notes standing to the account of any person shall be conclusive and binding for all purposes save in the case of manifest error) shall be treated by TMCC, the Registrar, the Transfer Agent and any other Paying Agent as a holder of such nominal amount of such Notes for all purposes other than for the payment of principal (including premium (if any)) or interest on such Notes, the right to which shall be vested, as against TMCC, the Registrar, the Transfer Agent and any other Paying Agent solely in the person whose name is entered in the register of holders of such Notes as the holder of the Registered Global Note in accordance with and subject to its terms (and the expressions Noteholder, holder of Notes and related expressions shall be construed accordingly).

 

“NSS” means the new safekeeping structure for holding Registered Notes that are intended to be Eurosystem-eligible Notes.

 

“Paying Agents” means the Transfer Agent and each such additional transfer agent or paying agent appointed by TMCC under this Agreement.

 

“Procedures Memorandum” means the non-binding Operating and Administrative Procedures Memorandum set out in Schedule 3 hereto as amended or varied from time to time, in respect of any Tranche of Registered Notes, by agreement between TMCC and the Purchaser of such Tranche with the approval in writing of the Registrar or Transfer Agent, as applicable.

 

“Registered Global Note” means a Registered Note issued in global form substantially in the form appended to this Agreement as Schedule 1 and any registered global note issued upon any transfer or exchange thereof or in replacement therefor.

 

“Relevant Account Holder” means any account holder with the relevant Clearing System which has a certain number of underlying Notes credited to its securities account from time to time.

 

“Relevant Time” means the time at which a Registered Global Note becomes void in the circumstances which are specified in that Registered Global Note.

 

“Stock Exchange” means the London Stock Exchange or any other or further stock exchange(s) on which any Notes may from time to time be listed or admitted to trading, as the case may be; and references in this Agreement to the relevant Stock Exchange shall, in relation to any Notes, be references to the Stock Exchange on which such Notes are from time to time, or are intended to be, listed or admitted to trading.

 

	
1.3

	
Any references to Notes shall, unless the context otherwise requires, include any Registered Global Note(s) or definitive certificates representing such Notes.

 

 

  

Page 2

  

 

	
1.4

	
For the purposes of this Agreement, the Notes of each Series shall form a separate series of Notes and accordingly, the provisions of this Agreement shall apply mutatis mutandis separately and independently to the Notes of each Series and in such provisions the expressions “Notes” and “Noteholders”, shall be construed accordingly.

 

	
1.5

	
As used herein, in relation to any Notes which are to have a "listing" or be "listed" (i) on the London Stock Exchange, “listing” and “listed” shall be construed to mean that such Notes have been admitted to the Official List in accordance with the listing rules of the UK Listing Authority and admitted to trading on the London Stock Exchange's Regulated Market and (ii) on any other Stock Exchange in a jurisdiction within the European Economic Area, “listing” and “listed” shall be construed to mean that Notes have been admitted to trading on a market within that jurisdiction which is a regulated market for the purposes of the Markets in Financial Instruments Directive (Directive 2004/39/EC).

 

	
1.6

	
All references in this Agreement to a Directive include any relevant implementing measure of each Member State of the European Economic Area which has implemented such Directive.

 

	
1.7

	
In this Agreement, unless the contrary intention appears or the context requires otherwise, a reference to:

 

	
  

	
(a)

	
an “amendment” includes a supplement, restatement or novation and “amended” is to be construed accordingly;

 

	
  

	
(b)

	
a “person” includes any individual, company, unincorporated association, government, state agency, international organisation or other entity;

 

	
  

	
(c)

	
the “records” of the Clearing System shall be to the records that the relevant Clearing System holds for its participants, which reflect the amount of each such participant’s interest in the Notes;

 

	
  

	
(d)

	
a provision of a law is a reference to that provision as extended, amended or re-enacted;

 

	
  

	
(e)

	
a Section, Subsection, paragraph or Schedule is a reference to a section, subsection or paragraph of, or a schedule to, this Agreement;

 

	
  

	
(f)

	
a person includes its successors and assigns;

 

	
  

	
(g)

	
a document is a reference to that document as amended from time to time; and

 

	
  

	
(h)

	
a time of day is a reference to London time.

 

	
2.

	
APPOINTMENT OF REGISTRAR; TRANSFER AGENT; PAYING AGENTS

 

	
2.1

	
TMCC hereby appoints The Bank of New York Mellon (Luxembourg) S.A., at present having its principal office at Vertigo Building – Polaris, 2-4 rue Eugène Ruppert, L-2453 Luxembourg, as registrar and transfer agent of TMCC for Registered Notes, upon the terms and conditions set forth herein.  The Bank of New York Mellon (Luxembourg) S.A. accepts such appointments as such registrar and transfer agent.  TMCC hereby appoints The Bank of New York Mellon, acting through its London branch, at present having its principal office at One Canada Square, London E14 5AL, as transfer agent and paying agent of TMCC for Registered Notes, upon the terms and conditions set forth herein.  The Bank of New York Mellon, acting through its London branch, accepts such appointments as such transfer agent 

 

  

Page 3

  

 

and paying agent. For this purpose the Registrar is authorised on behalf of TMCC to act as registrar and transfer agent of TMCC and the Transfer Agent is authorised on behalf of TMCC to act as transfer agent and paying agent of TMCC, and in respect of any Registered Notes settling in Euroclear and Clearstream, Luxembourg:

 

	
  

	
(a)

	
to prepare the Registered Global Note(s) and to complete, in accordance with the applicable Final Terms, the necessary details on such Registered Global Note(s) and attach a copy of the applicable Final Terms to such Registered Global Note(s);

 

	
  

	
(b)

	
to authenticate such Registered Global Note(s);

 

	
  

	
(c)

	
if the Registered Global Note(s) is/are not held in the NSS, to deliver such Registered Global Note(s) (i) to the specified common depositary of Euroclear, Clearstream, Luxembourg and/or such other applicable clearing agency as is specified in the applicable Final Terms against receipt from such common depositary of confirmation that such common depositary is holding the Registered Global Note(s) in safe custody for the account of Euroclear, Clearstream, Luxembourg or such other applicable clearing agency and to instruct Euroclear, Clearstream, Luxembourg and/or such other applicable clearing agency to credit the Notes represented by such Registered Global Note(s), unless otherwise agreed in writing between the Registrar and TMCC or the Transfer Agent and TMCC, as the case may be, to the Registrar’s or the Transfer Agent’s, as the case may be, distribution account, or (ii) as otherwise agreed in writing between TMCC and the Registrar or TMCC and the Transfer Agent, as the case may be;

 

	
  

	
(d)

	
if the Registered Global Note(s) is/are held in the NSS, to deliver such Registered Global Note(s) to the specified common safekeeper of Euroclear and/or Clearstream, Luxembourg against receipt from such common safekeeper of confirmation that such common safekeeper is holding the Registered Global Note(s) in safe custody for the account of Euroclear and Clearstream, Luxembourg and, in the case of a Registered Global Note which is a Eurosystem-eligible Note, to instruct the common safekeeper to effectuate the same; and

 

	
  

	
(e)

	
if the Registered Global Note(s) is held in the NSS, to instruct Euroclear and Clearstream, Luxembourg to make the appropriate entries in their records to record the initial outstanding aggregate nominal amount of the relevant Tranche of Registered Notes.

 

	
2.2

	
Each of the Registrar and the Transfer Agent shall only be required to perform its obligations under paragraph ‎2.1(a) if it holds a master Registered Global Note duly executed by a person or persons authorised to execute the same on behalf of TMCC, which may be used by the Registrar or the Transfer Agent, as the case may be, for the purpose of preparing Registered Global Note(s) in accordance with paragraph ‎2.1(a).

 

	
2.3

	
Each of the Registrar and the Transfer Agent shall provide Euroclear, Clearstream, Luxembourg and/or such other applicable clearing agency with the notifications, instructions or other information to be given by the Registrar or the Transfer Agent, as the case may be, to Euroclear, Clearstream, Luxembourg and/or such other applicable clearing agency.

 

	
2.4

	
Any of the duties and obligations of the Registrar in this Section ‎2 may be delegated by the Registrar to the Transfer Agent with respect to a particular Series of Registered Notes provided that the Registrar may not delegate its duty and obligation to maintain the Register (as defined in Subsection 6.1) in Luxembourg and any of the duties and obligations of the 

 

  

Page 4

  

 

Registrar or the Transfer Agent set forth in this Section ‎2 may, with the consent of TMCC, be delegated by the Registrar or the Transfer Agent with respect to a particular Series of Registered Notes to a third party, provided such third party’s performance is subject to the overall supervision and control of the Registrar or the Transfer Agent and provided further that the Registrar may not delegate its duty and obligation to maintain the Register in Luxembourg.

 

	
2.5

	
TMCC, the Registrar and the Transfer Agent acknowledge that the Agent has been instructed to elect Euroclear as common safekeeper in relation to each issue of Eurosystem-eligible Notes, including Registered Global Notes held in the NSS.  TMCC, the Registrar and the Transfer Agent acknowledge that the Agent and TMCC may from time to time agree to vary this election and that any such election is subject to the right of Euroclear and Clearstream, Luxembourg to jointly determine that the other shall act as common safekeeper in relation to any such issue.

 

	
2.6

	
Where the Registrar or the Transfer Agent delivers any authenticated Registered Global Note that is held in the NSS to a common safekeeper for effectuation using electronic means, it is authorised and instructed to destroy the Registered Global Note retained by it following its receipt of confirmation by the common safekeeper that the relevant Registered Global Note has been effectuated.

 

	
3.

	
FORMS OF NOTES AND TERMS OF ISSUE

 

	
3.1

	
Each series of Registered Notes shall initially be issued in the form of a Registered Global Note without coupon, as amended and supplemented by the applicable Final Terms in relation to such Series of Registered Notes and in accordance with the provisions of the Procedures Memorandum set out in Schedule 3 hereto (as from time to time varied, with the prior approval of the Registrar or the Transfer Agent, as the case may be, by TMCC and by the relevant Purchaser or Purchasers of the Registered Notes of such issue).

 

	
3.2

	
All Registered Notes (including any Registered Global Note) shall be executed on behalf of TMCC by the signature, manual or in facsimile, of any person who shall for the time being have been duly authorised by the executive committee of the board of directors in the name of and on behalf of TMCC.

 

	
3.3

	
In the event that any officer of TMCC who shall have signed a Registered Note shall cease to hold such office or authority before the Registered Note so signed shall actually have been authenticated, registered or delivered, such Registered Note nevertheless may be authenticated, registered and delivered with the same force and effect as though such person who signed such Registered Note had not ceased to be such official of TMCC.  In the event that a person who has signed on behalf of TMCC a master Registered Global Note or Definitive Registered Notes not yet issued but held by the Transfer Agent or the Registrar, as the case may be, in accordance with Subsections 2.1 and 3.4 ceases to be authorised, the Registrar and Transfer Agent shall (unless TMCC gives notice to the Registrar and the Transfer Agent that Registered Notes signed by that person do not constitute valid and binding obligations of TMCC or otherwise until replacements have been provided to the Registrar and the Transfer Agent) continue to have authority to issue any such Registered Notes, and TMCC hereby warrants to the Registrar and the Transfer Agent that such Registered Notes shall, unless notified as aforesaid, be valid and binding obligations of TMCC.  Promptly upon such person ceasing to be authorised, TMCC shall provide the Registrar and the Transfer Agent with a replacement master Registered Global Note and (if applicable) Definitive Registered Notes and the Registrar or the Transfer Agent, as the case may be, shall cancel and destroy the master Registered Global Note(s) and (if applicable) Definitive Registered Notes held by it 

 

  

Page 5

  

which are signed by such person and shall provide to TMCC a confirmation of destruction in respect thereof specifying the Registered Notes so cancelled and destroyed.

 

	
3.4

	
The Registrar and the Transfer Agent shall cause all master Registered Global Notes and Definitive Registered Notes delivered to and held by it under this Agreement to be maintained in safe custody and shall ensure that such Registered Notes are issued only in accordance with the provisions of this Agreement and the Registered Global Note and Conditions.

 

	
3.5

	
Subject to the procedures set out in the Procedures Memorandum, for the purposes of Subsection ‎3.4 the Registrar or Transfer Agent is entitled to treat a telephone or facsimile communication from a person purporting to be (and who the Registrar or Transfer Agent, after making reasonable investigation, believes in good faith to be) the authorised representative of TMCC named in the list referred to in, or notified pursuant to, Subsection ‎14.6 of this Agreement as sufficient instructions and authority of TMCC for the Registrar or Transfer Agent to act in accordance with Subsection ‎3.4.

 

	
3.6

	
In respect of Registered Notes settling in a Clearing System (including Euroclear and Clearstream, Luxembourg):

 

	
  

	
(a)

	
unless otherwise agreed in writing between TMCC and the Registrar or the Transfer Agent, as the case may be, each Registered Note credited to the Registrar’s or the Transfer Agent’s distribution account with Euroclear and Clearstream, Luxembourg (or, in the case of Registered Notes not held in the NSS, such other applicable clearing agency) following the delivery of a Registered Global Note to a common depositary or, as the case may be, a common safekeeper, shall be held to the order of TMCC.  Each of the Registrar and the Transfer Agent shall procure that the nominal amount of Registered Notes which the relevant Purchaser has agreed to purchase is:

 

	
  

	
(i)

	
debited from the Registrar’s or the Transfer Agent’s distribution account; and

 

	
  

	
(ii)

	
credited to the securities account of such Purchaser with Euroclear, Clearstream, Luxembourg or, in the case of Registered Notes not held in the NSS, such other clearing agency (as specified in the applicable Final Terms), in each case only upon receipt by the Registrar or the Transfer Agent (as the case may be) on behalf of TMCC of the purchase price due from the relevant Purchaser in respect of such Registered Notes.

 

	
  

	
(b)

	
unless otherwise agreed in writing between TMCC and the Registrar  or the Transfer Agent, as the case may be, if the Registrar or the Transfer Agent, as the case may be, pays an amount (the “Advance”) to TMCC on the basis that a payment (the “Payment”) will be received from a Purchaser and if the Payment is not received by the Registrar or the Transfer Agent, as the case may be, on the date the Registrar or the Transfer Agent, as the case may be, pays TMCC, the Registrar or the Transfer Agent, as the case may be (and if the Registrar fails to do so, the Transfer Agent), shall notify TMCC by facsimile that the Payment has not been received and TMCC shall repay to the Registrar or the Transfer Agent, as the case may be, the Advance and shall pay interest on the Advance (or the unreimbursed portion thereof) from (and including) the date such Advance is made to (but excluding) the earlier of repayment of the Advance and receipt by the Registrar or the Transfer Agent, as the case may be, of the Payment (at a rate quoted at that time by the Registrar or the Transfer Agent, as the case may be) as its cost of funding the Advance provided that evidence of the basis of such rate is given to TMCC); and

 

 

  

Page 6

  

 

	
  

	
(c)

	
unless otherwise agreed in writing between TMCC and the Registrar or the Transfer Agent, as the case may be, if on the relevant Issue Date a Purchaser does not pay the full purchase price due from it in respect of any Registered Note (the “Defaulted Note”) and, as a result, the Defaulted Note remains in the Registrar’s or the Transfer Agent’s distribution account with Euroclear and/or Clearstream, Luxembourg (or, in the case of Registered Notes not held in the NSS, such other applicable clearing agency) after such Issue Date, the Registrar or the Transfer Agent, as the case may be, will continue to hold the Defaulted Note to the order of TMCC.  The Registrar or the Transfer Agent, as the case may be (and if the Registrar fails to do so, the Transfer Agent), shall notify TMCC forthwith of the failure of the Purchaser to pay the full purchase price due from it in respect of any Defaulted Note and, subsequently, shall notify TMCC forthwith upon receipt from the Purchaser of the full purchase price in respect of such Defaulted Note.

 

	
3.7

	
In the event of an issue of Registered Notes that are listed on a Stock Exchange, the Registrar or the Transfer Agent, as the case may be, will promptly, and in any event prior to the Issue Date in respect of such issue, send the applicable Final Terms to the relevant Stock Exchange.

 

	
3.8

	
Execution in facsimile of any Registered Notes and any photostatic copying or other duplication of the master Registered Global Note (in unauthenticated form, but executed manually on behalf of TMCC as stated above) shall be binding upon TMCC in the same manner as if such Registered Notes were signed manually by such signatories.

 

	
4.

	
ISSUE OF GLOBAL REGISTERED NOTES

 

	
4.1

	
Upon receipt of a Registered Global Note(s) duly executed on behalf of TMCC (unless a master Registered Global Note is to be used) and a copy of the applicable Final Terms duly executed on behalf of TMCC, together with a written order or orders to authenticate and deliver a Registered Global Note(s) in a stated aggregate nominal amount, the Registrar or the Transfer Agent, as the case may be, shall authenticate and the Registrar shall register the stated aggregate nominal amount of Registered Notes.

 

	
4.2

	
In respect of Registered Notes settling in a Clearing System (including Euroclear and Clearstream, Luxembourg):

 

	
  

	
(a)

	
where the applicable Final Terms indicate the Registered Global Note(s) is/are not intended to be held in the NSS, the Registrar or the Transfer Agent, as the case may be, shall deliver such Registered Global Note(s) (i) to the specified depository of the relevant Clearing System (or, in the case of Euroclear and Clearstream, Luxembourg a common depositary) against receipt from such depository of confirmation that such depository is holding the Registered Global Note(s) in safe custody for the account of Euroclear, Clearstream Luxembourg or such other clearing agency and instruct Euroclear, Clearstream, Luxembourg and/or such other applicable clearing agency (as the case may be) to credit the Notes represented by such Registered Global Note(s), unless otherwise agreed in writing between the Registrar or the Transfer Agent, as the case may be, and TMCC, to the Registrar’s or the Transfer Agent’s distribution account, or (ii) as otherwise agreed in writing between TMCC and the Registrar or the Transfer Agent, as the case may be; and

 

	
  

	
(b)

	
where the applicable Final Terms indicate the Registered Global Note(s) is/are intended to be held in the NSS, the Registrar or the Transfer Agent, as the case may be (and if the Registrar fails to do so, the Transfer Agent), shall (i) deliver such Registered Global Note(s) to the specified common safekeeper of Euroclear and Clearstream, 

 

  

Page 7

  

 

Luxembourg against receipt from such common safekeeper of confirmation that such common safekeeper is holding the Registered Global Note(s) in safe custody for the account of Euroclear and Clearstream, Luxembourg and instruct the common safekeeper to effectuate the same; and (ii) instruct Euroclear and Clearstream, Luxembourg to make the appropriate entries in their records to reflect the initial outstanding aggregate nominal amount of the relevant Tranche of Registered Notes.

 

	
4.3

	
Where the Registrar or the Transfer Agent, as the case may be, delivers any authenticated Registered Global Note that is to be held in the NSS to a common safekeeper for effectuation using electronic means, it is authorised and instructed to destroy the Registered Global Note retained by it following its receipt of confirmation from the common safekeeper that the relevant Registered Global Note has been effectuated.

 

	
4.4

	
The Registrar or the Transfer Agent, as the case may be (and if the Registrar fails to do so, the Transfer Agent), shall provide Euroclear, Clearstream, Luxembourg and/or such other applicable clearing agency with the notifications, instructions or other information to be given by the Registrar or the Transfer Agent, as the case may be, to Euroclear, Clearstream, Luxembourg and/or such other applicable clearing agency.

 

	
4.5

	
In respect of each Registered Global Note that is to be held in the NSS, the Registrar or the Transfer Agent, as the case may be (and if the Registrar fails to do so, the Transfer Agent), shall also perform the duties set out in Schedule 4 to this Agreement.

 

	
4.6

	
Any of the duties and obligations of the Registrar in this Section 4 may be delegated by the Registrar to the Transfer Agent with respect to a particular Series of Registered Notes provided that the Registrar may not delegate its duty and obligation to maintain the Register in Luxembourg.  Any of the duties and obligations of the Registrar or the Transfer Agent in this Section 4 may, with the consent of TMCC, be delegated by the Registrar or the Transfer Agent with respect to a particular Series of Registered Notes to a third party, provided such third party’s performance is subject to the overall supervision and control of the Registrar or the Transfer Agent and provided further that the Registrar may not delegate its duty and obligation to maintain the Register in Luxembourg.

 

	
5.

	
ISSUE OF DEFINITIVE REGISTERED NOTES

 

	
5.1

	
A Registered Global Note will be exchanged in whole, but not in part only, for Definitive Registered Notes only upon the occurrence of an Exchange Event, as that term is defined in the applicable Registered Global Note.

 

	
5.2

	
Upon the occurrence of an Exchange Event, (i) TMCC will promptly give notice to the Registrar, the Transfer Agent and any other Paying Agents and to Noteholders in accordance with Condition 16 and the Clearing System (acting on the instructions of any holder of an interest in the Registered Global Note) may give notice to the Registrar and/or the Transfer Agent requesting exchange; and (ii) TMCC shall execute Definitive Registered Notes and provide them to the Transfer Agent.  The Transfer Agent, upon receipt thereof, shall either authenticate and deliver, or procure the Registrar to authenticate and deliver, such Definitive Registered Notes, without coupons, in such denominations as are specified in the applicable Final Terms, in an aggregate nominal amount equal to the aggregate nominal amount of the Registered Global Note as of the exchange date.

 

	
5.3

	
Any such exchange shall occur not later than 45 days after the date of receipt of the first relevant notice by the Registrar or the Transfer Agent, as the case may be.  The exchange will be made upon presentation of the Registered Global Note by the registered holder thereof on 

 

  

Page 8

  

 

any day (other than a Saturday or Sunday) on which banks are open for general business in London and Luxembourg.  The aggregate nominal amount of Definitive Registered Notes issued upon an exchange of the Registered Global Note will be equal to the aggregate nominal amount of the Registered Global Note at the time of such exchange.  On an exchange of the whole of the Registered Global Note, the Registered Global Note shall be surrendered to the Registrar or the Transfer Agent and the Registrar or the Transfer Agent, as the case may be, shall cancel such Registered Global Note.

 

	
5.4

	
Definitive Registered Notes issued in exchange for the Registered Global Note pursuant to Subsection ‎5.2 shall be registered by the Registrar in such name as the relevant Clearing System, pursuant to instructions from its direct or indirect participants or otherwise, shall instruct the Registrar, the Transfer Agent or TMCC.  The Registrar or the Transfer Agent, as the case may be (and if the Registrar fails to do so the Transfer Agent), shall deliver such Definitive Registered Notes to or as directed by the persons in whose names such Definitive Registered Notes are so registered by the Registrar and shall direct all payments to be made in respect of such Definitive Registered Notes to the registered holders thereof on or after such exchange regardless of whether such exchange occurred after the record date for such payment.

 

	
5.5

	
All Definitive Registered Notes issued upon the exchange of the Registered Global Note shall be valid obligations of TMCC, evidencing the same debt, entitled to the same benefits and subject to the same terms and conditions (except insofar as they relate specifically to a Registered Global Note) as the Registered Global Note surrendered upon such exchange.

 

	
6.

	
REGISTRATION, TRANSFERS AND EXCHANGES

 

	
6.1

	
The Registrar, as agent of TMCC for such purpose, shall at all times keep at its principal offices in Luxembourg, a central securities register (hereinafter the “Register”) for the registration of Registered Notes and registration of transfers and exchanges of Registered Notes, in which shall be entered the names, alphabetically arranged, and the latest known address of each person who is or has been a registered holder of Registered Notes, the number of Registered Notes held by them, and the date and particulars of the issue and transfer of each Registered Note.

 

	
6.2

	
The Transfer Agent shall notify the Registrar of each registration required to be made by the Registrar in the Register and the Registrar shall make a corresponding registration in the Register.

 

	
6.3

	
Subject to Section ‎7 hereof, upon surrender for registration of transfer of any Registered Note at its office, the Registrar or the Transfer Agent, as the case may be, shall authenticate, register and deliver, in the name of the transferee or transferees, a new Registered Note or Registered Notes for a like aggregate nominal amount.

 

	
6.4

	
Subject to Section ‎7 hereof, upon surrender of any Registered Note at its office for exchange, the Registrar or the Transfer Agent, as the case may be, shall authenticate, register (in the case of the Registrar), procure the Registrar to register (in the case of the Transfer Agent) and deliver, in exchange for such Registered Note, a new Registered Note or Registered Notes of the appropriate authorised denomination(s) and for a like aggregate nominal amount in accordance with the provisions of the Registered Notes.  TMCC, the Registrar and the Transfer Agent shall not be required to make any exchange of Registered Notes if as a result thereof, TMCC would incur adverse tax or other similar consequences under the laws or regulations of any jurisdiction in effect at the time of the exchange.

 

 

  

Page 9

  

 

	
6.5

	
All new Registered Notes authenticated and delivered by the Registrar or the Transfer Agent, as the case may be, upon registration of transfer or in exchange for Registered Notes of other denominations shall be so dated that neither gain nor loss of interest shall result from such registration of transfer or exchange.

 

	
6.6

	
All Registered Notes presented or surrendered for registration of transfer or exchange shall be accompanied by a written instrument or instruments of transfer in form satisfactory to the Registrar or the Transfer Agent, as the case may be, which form shall be substantially in the form appended to the Registered Notes and otherwise in accordance with the prevailing transfer regulations and practices of the relevant Clearing System and duly executed by the registered holder or its duly authorised attorney.

 

	
6.7

	
The Registrar or the Transfer Agent, as the case may be, shall not impose any service charge on the registered holder on any such registration of transfer or exchange of Registered Notes; however TMCC may require of the party requesting such transfer or exchange, as a condition precedent to the exercise of any right of transfer or exchange contained in this Agreement or in the Registered Notes, the payment of a sum sufficient to cover any stamp or other tax or other governmental charge payable in connection therewith.

 

	
6.8

	
TMCC, the Registrar, the Transfer Agent and any other Paying Agent may (except as ordered by a court of competent jurisdiction or as required by law) treat the person in whose name any Registered Note is registered as the absolute owner of such Registered Note for the purpose of receiving payment of principal of and interest on such Registered Note, subject to the provisions of the Registered Global Note, whether or not such Registered Note be overdue and notwithstanding any notice of ownership, theft or loss or any writing thereon made by anyone, and any such payment shall be a good and sufficient discharge to TMCC, the Registrar, the Transfer Agent and any other Paying Agent for the amount so paid, provided that where the Registrar, the Transfer Agent or any other Paying Agent, as the case may be, has notified TMCC of the presentation and surrender of any Registered Note in accordance with Subsection ‎9.2, the Registrar, the Transfer Agent or any other Paying Agent shall not make payment thereon until so instructed by TMCC.

 

	
6.9

	
The Registrar shall not be required to register, and the Transfer Agent shall not be required to procure the Registrar to register, any transfer or exchange of Registered Notes during the period from any Regular Record Date (as defined in the Registered Notes) to the corresponding Interest Payment Date (as defined in the applicable Final Terms) or Maturity Date (as defined in the applicable Final Terms) or from the close of business on the Redemption Record Date (as defined in the Registered Notes) to the Redemption Date (as defined in the Registered Notes) and for the purposes of any interest payment made in accordance with Section ‎8 hereof, such payment shall be made to those persons in whose names the Registered Notes are registered on such Regular Record Date or Redemption Record Date, as the case may be.

 

	
7.

	
SPECIAL PROVISIONS RELATING TO REGISTERED GLOBAL NOTES

 

	
7.1

	
Unless otherwise agreed by TMCC, the relevant Purchaser, the Registrar and the Transfer Agent, each Registered Global Note shall be registered on issue in the name of a nominee of the relevant Clearing System (or a common nominee), or such other name as is advised by an authorised representative of the relevant Clearing System, and deposited on issue with a depository for the relevant Clearing System (or a common depositary).

 

	
7.2

	
As long as the relevant Clearing System or its nominee (or a common nominee) is the registered holder of the Registered Global Note it will be considered the sole owner and 

 

  

Page 10

  

 

holder of the Registered Notes for purposes of receiving payment of principal and interest hereunder and under the Registered Global Note.  None of TMCC, the Registrar, the Transfer Agent or any other Paying Agent will have any responsibility or liability for any aspect of the records of the relevant Clearing System relating to payments made by such Clearing System on account of beneficial interests in the Registered Global Note.  Except as provided in Subsection ‎5.1 hereof, owners of beneficial interests in the Registered Global Note will not be entitled to have Registered Notes registered in their names and will not receive or be entitled to receive Definitive Registered Notes.

 

	
7.3

	
Unless the Registered Global Note is presented by an authorised representative of the relevant Clearing System to TMCC, the Registrar, the Transfer Agent or any other Paying Agent for registration of transfer, exchange or payment, and any replacement Registered Global Note issued is registered in the name of, or in the name of a nominee (or common nominee) of, the relevant Clearing System, or in such other name as is requested by an authorised representative of the relevant Clearing System (and any payment is made to such nominee (or common nominee) or to such other entity as is requested by an authorised representative of the relevant Clearing System), any transfer, pledge or other use of the Registered Global Note for value or otherwise by or to any person shall be wrongful since the registered holder thereof has an interest therein.

 

	
8.

	
PAYMENTS

 

	
8.1

	
TMCC will pay to the Transfer Agent, in same day funds, in the Specified Currency, to an account to be specified by the Transfer Agent, prior to 9:30 am (London time) on the day on which the same shall become due (or the next following Business Day (as defined below) if such due date falls upon a day which is not a Business Day), all amounts to be paid on the Registered Notes for principal and interest on that date as required by the terms of the Registered Notes, and TMCC hereby authorises and directs the Transfer Agent, from the funds so paid to it, to make payment of the principal and interest in respect of the Registered Notes in accordance with their terms and the provisions set forth below.  For the purposes hereof, “Business Day” means a day on which banking institutions in London, England or the applicable place of payment are not authorised or obligated by law or executive order to be closed.

 

	
8.2

	
Payment of principal and interest on the Registered Global Note shall be made by the Transfer Agent to the registered holder in the Specified Currency and in accordance with the regular procedures established from time to time by the relevant Clearing System and the Transfer Agent.

 

	
8.3

	
Payment of principal in respect of Definitive Registered Notes issued pursuant to Subsection ‎5.1 hereof shall be made in the Specified Currency at the office of the Registrar in Luxembourg, the office of the Transfer Agent in London, England or at the specified office of any other Paying Agent, provided no such payment shall be made at a specified office of any Paying Agent within the United States.

 

	
8.4

	
The Transfer Agent shall arrange with the Registrar and each other Paying Agent for the payment, as provided herein, of the principal of and interest on the Registered Global Notes on terms approved by TMCC provided no such payment shall be made at a specified office of any Paying Agent within the United States.  Notwithstanding the foregoing such payment may be made at the specified office of a Paying Agent in the United States (which expression, as used herein, means the United States of America (including the States and the District of Columbia and its possessions) only if:

 

 

  

Page 11

  

 

	
  

	
(a)

	
Paying Agents with specified offices outside the United States have been appointed with the reasonable expectation that such Paying Agents would be able to make payments at such specified offices outside the United States of the full amount owing in respect to such Registered Global Notes in the manner provided above when due;

 

	
  

	
(b)

	
payment of the full amount owing in respect of such Registered Global Notes at all such specified offices outside the United States is illegal or effectively precluded by the imposition of exchange controls or other similar restrictions on the full amount; and

 

	
  

	
(c)

	
such payment is then permitted under United States law without involving, in the opinion of TMCC, adverse tax consequences to TMCC.

 

	
8.5

	
Payment of interest due prior to or at maturity or on any date of early redemption will be made by credit or transfer to an account in the relevant Specified Currency maintained by the payee with, or at the option of the payee by a cheque in such Specified Currency drawn on, a bank in the principal financial centre of the country of such Specified Currency unless specified otherwise in the applicable Final Terms, delivered to the registered addresses of registered holders of Registered Notes.  Such cheque shall be dated the due date for payment and made payable to the order of the registered holder or, in the case of joint registered holders, to the order of all such joint holders (failing instructions from them to the contrary) and shall be sent to the address of that one of such joint holders whose name stands first in the register as one of such joint holders.  The Registrar, the Transfer Agent or any Paying Agent appointed by TMCC for such purpose shall mail or otherwise deliver such cheques to the names and addresses of registered holders of Registered Notes sufficiently in advance of the relevant due date for payment that receipt of such cheques by registered holders on or before the due date is reasonably assured.

 

	
8.6

	
All moneys paid to the Transfer Agent under Subsection ‎8.1 hereof shall be held by it in a separate account from the moment when such money is received until the time of actual payment, in trust for the registered holders of Registered Notes to be applied by the Transfer Agent to payments due on the Registered Notes at the time and in the manner provided for in this Agreement and the Registered Notes. Any money deposited with the Transfer Agent for the payment of the principal or interest in respect of any Registered Note remaining unclaimed for five years after such principal or interest shall have become due and payable shall be repaid to TMCC without interest, and the registered holder of a Registered Note may thereafter look only to TMCC for any payment to which such holder may be entitled.

 

	
8.7

	
Subject to the Transfer Agent being satisfied in its sole discretion that payment will be duly made as provided in Subsection 8.1, the Transfer Agent or the relevant Paying Agent shall pay or cause to be paid all amounts due in respect of the Registered Notes on behalf of TMCC in the manner provided in the Conditions.  If any payment provided for in Subsection 8.1 is made late but otherwise in accordance with the provisions of this Agreement, the Transfer Agent and each Paying Agent shall nevertheless make payments in respect of the Registered Notes as aforesaid following receipt by it of such payment.

 

	
8.8

	
If for any reason the Transfer Agent considers in its sole discretion that the amounts to be received by the Transfer Agent pursuant to Subsection 8.1 will be, or the amounts actually received by it pursuant thereto are, insufficient to satisfy all claims in respect of all payments then falling due in respect of the Registered Notes, the Transfer Agent shall then forthwith notify TMCC of such insufficiency and, until such time as the Transfer Agent has received the full amount of all such payments, neither the Transfer Agent nor any Paying Agent shall be obliged to pay any such claims.

 

 

  

Page 12

  

 

	
8.9

	
Without prejudice to Subsections 8.7 and 8.8, if the Transfer Agent pays any amounts to the holders of Registered Note or to any Paying Agent at a time when it has not received payment in full in respect of the relevant Registered Note in accordance with Subsection 8.1 (the excess of the amounts so paid over the amounts so received being the “Shortfall”), TMCC shall, in addition to paying amounts due under Subsection 8.1, pay to the Transfer Agent on demand interest (at a rate which represents the Transfer Agent’s actual overnight cost of funding the Shortfall as evidenced to TMCC by the provision of details of the calculation of the cost of funding) on the Shortfall (or the unreimbursed portion thereof) from (and including) the date such Shortfall is paid by the Transfer Agent to the holders of the Registered Notes or to any Paying Agent to (but excluding) the date of receipt in full by the Transfer Agent of the Shortfall.  The Transfer Agent shall notify TMCC by facsimile as soon as practicable, it being understood that TMCC shall have the right to make such payment subsequently with good value as of such Business Day.

 

	
8.10

	
The Transfer Agent shall on demand promptly reimburse each Paying Agent for payments in respect of Registered Notes properly made by such Paying Agent in accordance with this Agreement and the Conditions unless the Transfer Agent has notified the Paying Agent, prior to the opening of business in the location of the office of the Paying Agent through which payment in respect of the Registered Notes can be made on the due date of a payment in respect of the Registered Notes, that the Transfer Agent does not expect to receive sufficient funds to make payment of all amounts falling due in respect of such Registered Notes.

 

	
9.

	
MUTILATED, DESTROYED, STOLEN OR LOST NOTE CERTIFICATES

 

	
9.1

	
If any Registered Note certificate is mutilated, defaced, destroyed, stolen or lost, application for replacement shall be made to the Registrar or the Transfer Agent, as the case may be, who shall promptly transmit such application to TMCC. Such application shall be accompanied by the mutilated or defaced certificate or proof, satisfactory to TMCC in its discretion, of the destruction, theft or loss of the certificate, and upon receipt by TMCC of an indemnity satisfactory to it, TMCC shall execute a new certificate of like tenor, and upon written instructions from TMCC, the Registrar or the Transfer Agent, as the case may be, shall thereupon cancel the mutilated or defaced certificate and the Registrar shall, or the Transfer Agent shall procure that the Registrar shall, adjust the Register to reflect the destruction, theft or loss of a certificate, as the case may be, and authenticate, register (in the case of the Registrar only) and deliver such new certificate in exchange for the mutilated or defaced certificate or in substitution for the destroyed, stolen or lost certificate. Such replacement certificate shall be so dated that neither gain nor loss in interest will result from such exchange or substitution. All expenses associated with procuring any indemnity and with the preparation, authentication and delivery of a replacement certificate will be borne by the registered holder of the mutilated, defaced, destroyed, stolen or lost Registered Note certificate.

 

	
9.2

	
Whenever any Registered Note certificate, alleged to have been lost, stolen or destroyed for which a replacement Registered Note certificate has been issued, is presented to the Registrar, Transfer Agent or any Paying Agent for payment at maturity or redemption or for registration of transfer or exchange, the Registrar, Transfer Agent or the Paying Agent, as the case may be, shall immediately notify TMCC in respect thereof and shall deal with such Registered Note only in accordance with TMCC's instructions.

 

 

  

Page 13

  

 

	
10.

	
MATURITY, REDEMPTION AND PURCHASES

 

	
10.1

	
Unless previously redeemed as provided in the Conditions, or repurchased by TMCC as provided below, the nominal amount of the Registered Notes is due and payable on the Maturity Date or such other date or dates as set out in the applicable Final Terms.

 

	
10.2

	
TMCC may, if not in default under the Conditions and the terms of the Registered Notes, at any time, purchase Registered Notes in the open market, or by tender or by private contract at any price, in accordance with applicable law and shall cause the Registrar or the Transfer Agent, as the case may be, to cancel any Registered Notes so purchased.

 

	
10.3

	
If TMCC elects to purchase and have cancelled any Registered Notes of a Series when such Registered Notes have been issued in the form of one or more Registered Global Notes, it shall require the Registrar to register such cancellation in the Register and the Registrar or the Transfer Agent, as the case may be (and if the Registrar fails to do so, the Transfer Agent), shall instruct the relevant Clearing System to reduce the outstanding aggregate nominal amount of the Registered Global Note(s) of such Series in accordance with the regular procedures of such Clearing System in effect at such time.  Where a Global Registered Note is held in the NSS, the Registrar or the Transfer Agent. as the case may be (and if the Registarr fails to do so, the Transfer Agent), shall instruct the ICSDs to make entries in their records to reflect the cancellation and reduction of the outstanding aggregate nominal amount of such Registered Global Note. In addition, upon TMCC's cancellation of any such Registered Notes, the Registrar shall deem that the maximum amount of the Registered Notes of such Series to be issued and outstanding at any time shall be reduced by the nominal amount of the Registered Notes so cancelled.

 

	
11.

	
CANCELLATION AND DESTRUCTION

 

All Registered Notes which are paid at maturity or upon early redemption, or surrendered for registration of transfer or exchange for other certificates, shall be cancelled by the Registrar or the Transfer Agent and the Registrar shall, and the Transfer Agent shall procure that the Registrar shall,  register such cancellation. The Registrar shall, as soon as practicable after the date of cancellation of Registered Notes under this Section, Subsection 10.2 or Subsection ‎10.3 hereof or the date that the Register is adjusted to reflect the destruction, theft or loss of a certificate pursuant to Subsection ‎9.1 hereof, furnish or procure that the Transfer Agent furnishes, TMCC, the Registrar or the Transfer Agent (as applicable) and the Agent with a certificate or certificates stating the serial numbers and total number of Registered Notes that have been cancelled. The Registrar or the Transfer Agent, as the case may be, shall destroy all cancelled Registered Notes in accordance with the instructions of TMCC and shall furnish to TMCC, on a timely basis, certificates of destruction stating the serial numbers, dollar value and total number of all Registered Notes destroyed hereunder, copied to the Registrar or the Transfer Agent, as the case may be.

 

	
12.

	
PUBLICATION OF NOTICES

 

On behalf of and at the request and expense of TMCC, the Transfer Agent shall cause to be published all notices required to be given by TMCC in relation to Registered Notes in accordance with the Conditions.  Forthwith upon the receipt by the Registrar or the Transfer Agent, as the case may be, of a demand or notice from any Noteholder in accordance with the Conditions, the Registrar or the Transfer Agent, as the case may be, shall forward a copy thereof to TMCC.

 

 

  

Page 14

  

 

	
13.

	
LIMIT ON LIABILITY

 

In acting under this Agreement, the Registrar, the Transfer Agent and any other Paying Agent are acting solely as agents of TMCC and do not assume any obligation or relationship of agency or trust for or with any of the holders of the Registered Notes, except that all funds held by the Registrar, the Transfer Agent and any other Paying Agent for payment of principal or interest shall be held in trust for the registered holders of Registered Notes as provided in this Agreement.

 

	
14.

	
RIGHTS AND LIABILITIES OF REGISTRAR, TRANSFER AGENT AND PAYING AGENTS

 

	
14.1

	
The Registrar and the Transfer Agent may rely without further investigation or inquiry upon and shall incur no liability for, or in respect of, any action taken, omitted to be taken or suffered by it in reliance upon any Registered Note, certificate, affidavit, instruction, notice, request, direction, order, statement or other paper, document or communication reasonably believed by it to be genuine. Any order, certificate, affidavit, instruction, notice, request, direction, statement or other communication from TMCC made or given by it and sent, delivered or directed to the Registrar or the Transfer Agent under, pursuant to, or as permitted by, any provision of this Agreement shall be sufficient for purposes of this Agreement if such communication is in writing and signed by the duly authorised representatives of and certified as such by TMCC.  The Registrar and the Transfer Agent shall retain the right not to act and shall not be held liable for refusing to act unless it has received clear and reasonable documentation which complies with the terms of this Agreement.  The Registrar and the Transfer Agent shall be entitled to rely on, and act upon, any direction, order, instruction, notice or other communication provided to it hereunder which is sent to it by facsimile transmission.

 

	
14.2

	
The Registrar, the Transfer Agent and each other Paying Agent, and their officers, directors and employees, may become the holder of, or acquire any interest in, any Notes, with the same rights that it or they would have if it were not the Registrar, Transfer Agent or a Paying Agent hereunder, or they were not such officers, directors or employees, and may engage or be interested in any financial or other transaction with TMCC and may act on, or as depository, trustee or agent for, any committee or body of holders of Notes or other obligations of TMCC as freely as if it were not the Registrar, Transfer Agent or a Paying Agent hereunder or they were not such officers, directors or employees.

 

	
14.3

	
The Registrar and the Transfer Agent may in connection with its services hereunder:

 

	
  

	
(a)

	
consult with legal and other professional advisers and the opinion of such advisers shall be full and complete protection in respect of any action taken, omitted or suffered hereunder in good faith and in accordance with the opinion of such advisers;

 

	
  

	
(b)

	
assume that the terms of the Registered Notes as issued are correct;

 

	
  

	
(c)

	
refer any question relating to the ownership of any Registered Note, or the adequacy or sufficiency of any evidence supplied in connection with the replacement, transfer or exchange of any Registered Note to TMCC for determination by TMCC and in good faith conclusively rely upon any determination so made; and

 

	
  

	
(d)

	
whenever in the administration of this Agreement it shall deem it desirable that a matter be proved or established prior to taking, suffering or omitting any action hereunder, in the absence of bad faith or negligence or wilful misconduct on its part, accept a certificate signed by any person duly authorised on behalf of TMCC as to any 

 

  

Page 15

  

 

fact or matter prima facie within the knowledge of TMCC as sufficient evidence thereof.

 

	
14.4

	
No provisions of this Agreement shall require the Registrar or the Transfer Agent to expend its own funds or assume a financial commitment to a person not party to this Agreement (other than in the ordinary course of its business) in the performance of any of its duties hereunder, or in the exercise of any of its rights or powers hereunder.

 

	
14.5

	
The Transfer Agent, the Registrar and any other Paying Agent shall be obliged to perform such duties and only such duties as are set out in this Agreement (including Schedule 4), the Conditions, the Procedures Memorandum and the Registered Notes or are otherwise agreed in writing by TMCC, the Registrar, the Transfer Agent and any Paying Agent, as applicable, and no implied duties or obligations shall be read into this Agreement or the Registered Notes against the Transfer Agent, the Registrar and Paying Agents other than the duty to act honestly and in good faith and to exercise the diligence of a reasonably prudent registrar, transfer agent and paying agent, as applicable, in such circumstances.

 

	
14.6

	
TMCC will supply the Registrar and the Transfer Agent with the names and specimen signatures of its authorised signatories.

 

	
14.7

	
The sending of a cheque by the Transfer Agent or the sending of moneys by credit or wire transfer by the Transfer Agent will satisfy and discharge the liability for any amounts due to the extent of the sum or sums represented thereby (plus the amount of any tax deducted or withheld as required by law) unless such cheque, credit or wire is not honoured on presentation; provided that, in the event of the non-receipt of such cheque, credit or wire by the payee, or the loss or destruction thereof, the Transfer Agent, upon being furnished with reasonable evidence of such non-receipt, loss or destruction and indemnity reasonably satisfactory to it, will issue to such payee a replacement cheque, credit or wire.

 

	
14.8

	
The amount of the Programme may be increased by the Issuers in accordance with the procedure set out in the Programme Agreement.  Upon any increase being effected, all references in this Agreement to the amount of the Programme shall be deemed to be references to the increased amount.

 

	
15.

	
COMMISSIONS, EXPENSES AND INDEMNITIES

 

	
15.1

	
TMCC agrees to pay to the Registrar and Transfer Agent such fees and commissions as TMCC, the Registrar and Transfer Agent may separately agree in respect of the services of the Registrar and the Transfer Agent hereunder, together with any out-of-pocket expenses (including legal, printing, postage, tax, cable and advertising expenses required in connection with the Registered Notes issued hereunder) properly incurred by the Registrar and the Transfer Agent in connection with their said services.

 

	
15.2

	
TMCC will indemnify the Registrar, the Transfer Agent and each other Paying Agent against any direct losses, liabilities, costs, claims, actions, demands or expenses (including, but not limited to, all reasonable costs, charges and expenses paid or incurred in disputing or defending any of the foregoing but excluding loss of profits) which it may incur or which may be made against the Registrar, the Transfer Agent and each other Paying Agent as a result of, or in connection with its appointment by TMCC or the exercise of its powers and duties under this Agreement except such as may result from the Registrar’s, the Transfer Agent’s or any other Paying Agent’s own wilful default, negligence or bad faith or that of its officers, directors or employees or the breach by it of the terms of this Agreement.  Such indemnity shall survive the termination or expiry of this Agreement.

 

  

Page 16

  

	
15.3

	
The Registrar, the Transfer Agent and each other Paying Agent shall not be liable for any action taken or omitted hereunder except for their own wilful default, negligence or bad faith or that of their respective officers, directors or employees or the breach by any of them of the terms of this Agreement.  The Agent, the Transfer Agent and each other Paying Agent shall not be liable for any consequential loss (being loss of business, goodwill, opportunity or profit) suffered by TMCC.

 

	
15.4

	
The Registrar, the Transfer Agent and each other Paying Agent shall not be responsible for the acts or failure to act of any other of them and each of the Registrar, the Transfer Agent and each other Paying Agent shall severally indemnify TMCC against any loss, liability, cost, claim, action, demand or expense (including, but not limited to, all reasonable costs, legal fees, charges and expenses paid or incurred in disputing or defending any of the foregoing) which TMCC may incur or which may be made against it as a result of the breach by the Registrar, the Transfer Agent or such other Paying Agent of the terms of this Agreement or its wilful default, negligence or bad faith or that of its officers, directors or employees.  Such indemnity shall survive the termination or expiry of this Agreement.

 

	
15.5

	
If, under any applicable law and whether pursuant to a judgment being made or registered against TMCC or in the liquidation, insolvency or analogous process of TMCC or for any other reason, any payment under or in connection with this Agreement is made or is to be satisfied in a currency (the “other currency”) other than that in which the relevant payment is expressed to be due (the “required currency”) under this Agreement, then, to the extent that the payment (when converted into the required currency at the rate of exchange on the date of payment or, if it is not practicable for the Transfer Agent or the relevant Paying Agent to purchase the required currency with the other currency on the date of payment, at the rate of exchange as soon thereafter as it is practicable for it to do so or, in the case of a liquidation, insolvency or analogous process at the rate of exchange on the latest date permitted by applicable law for the determination of liabilities in such liquidation, insolvency or analogous process) actually received by the Transfer Agent or the relevant Paying Agent falls short of the amount due under the terms of this Agreement, TMCC undertakes that it shall, as a separate and independent obligation, indemnify and hold harmless the Transfer Agent and the relevant Paying Agent against the amount of such shortfall.  For the purpose of this Subsection 15.5, “rate of exchange” means the rate at which the Transfer Agent or the relevant Paying Agent is able on the London foreign exchange market on the relevant date to purchase the required currency with the other currency and shall take into account any premium and other costs of exchange.

 

	
16.

	
CHANGES IN REGISTRAR, TRANSFER AGENT AND PAYING AGENTS

 

	
16.1

	
TMCC agrees that until no Registered Note is outstanding or until moneys for the payment of all amounts in respect of all outstanding Registered Notes have been made available to the Transfer Agent and have been returned to TMCC as provided herein (whichever is the later):

 

	
  

	
(a)

	
there shall at all times be a Registrar and a Transfer Agent hereunder;

 

	
  

	
(b)

	
so long as any Notes are admitted to trading or listed on any Stock Exchange or other relevant authority, there will at all times be a Paying Agent with a specified office in such place as may be required by the rules and regulations of the relevant Stock Exchange or other relevant authority; and

 

	
  

	
(c)

	
there will at all times be a Paying Agent in a Member State of the European Union that will not be obliged to withhold or deduct tax pursuant to the European Council 

 

  

Page 17

  

 

Directive 2003/48/EC or any law implementing or complying with or introduced to conform to, such Directive;

 

provided that TMCC, whenever possible, may choose to act at any time as its own registrar, transfer agent and paying agent.

 

	
16.2

	
Neither the Registrar nor the Transfer Agent shall transfer or assign this Agreement or any interest or obligation herein without TMCC's prior written consent. Any corporation into which the Registrar or the Transfer Agent may be amalgamated, merged or converted, or any corporation with which the Registrar or the Transfer Agent may be consolidated, or any corporation resulting from any amalgamation, merger, conversion or consolidation to which the Registrar or the Transfer Agent shall sell or otherwise transfer all or substantially all of its corporate trust or bond agency business  shall be the successor Registrar or the Transfer Agent, as the case may be, under this Agreement without the execution or filing of any paper or any further act on the part of any of the parties hereto, but subject to prior notice to and the prior approval of TMCC.

 

	
16.3

	
The Registrar may at any time resign by giving written notice to TMCC of its resignation, specifying the date on which its resignation shall become effective (which shall not be less than 60 days after the date on which such notice is given unless TMCC shall agree to a shorter period); provided that no such notice shall expire less than 30 days before or less than 30 days after the due date for any payment of principal or interest in respect of the Notes.  TMCC may remove the Registrar at any time by giving written notice to the Registrar specifying the date on which such removal shall become effective.  Such resignation or removal shall only take effect upon the appointment by TMCC of a successor Registrar and upon the acceptance of such appointment by such successor Registrar. The Transfer Agent and any other Paying Agent may resign or may be removed at any time upon like notice, and TMCC in any such case may appoint in substitution therefor a new Transfer Agent or Paying Agent.

 

	
16.4

	
TMCC may from time to time appoint one or more additional agents in relation to the Registered Notes (which may include the agents appointed under the Programme Agency Agreement) for the processing of applications for registration of transfer and exchange of Registered Notes and/or for the payment (subject to the applicable laws and regulations) of the principal of and interest on the Registered Notes and shall provide notice of such appointment to the Registrar, the Transfer Agent and the Agent; provided, however, that the Register shall at all times be maintained by the Registrar.  The obligations of the Transfer Agent, Registrar, other Paying Agent or additional agent appointed in relation to the Registered Notes are several and not joint.

 

	
16.5

	
TMCC may at any time terminate the appointment of the Registrar, the Transfer Agent or any Paying Agent appointed in relation to Registered Notes.  TMCC will keep the Registrar, the Transfer Agent and the Agent informed as to the name, address and telephone and facsimile numbers of each Paying Agent appointed by it in relation to Registered Notes and will notify the Registrar, the Transfer Agent and the Agent of the resignation or removal of the Registrar, the Transfer Agent or any Paying Agent in relation to Registered Notes.

 

	
16.6

	
The appointment of the Registrar, the Transfer Agent or any Paying Agent hereunder shall forthwith terminate, whether or not notice of such termination shall have been given, if at any time the Registrar, the Transfer Agent or such Paying Agent becomes incapable of performing its duties hereunder, or is adjudged bankrupt or insolvent, or files a voluntary petition in bankruptcy or makes an assignment for the benefit of its creditors or consents to the appointment of a liquidator or receiver of all or any substantial part of its property or admits in writing its inability to pay or meet its debts as they mature or suspends payment thereof, or if a 

 

  

Page 18

  

 

resolution is passed or an order made for the winding up or dissolution of the Registrar, the Transfer Agent or such Paying Agent, or if a liquidator or receiver of the Registrar, the Transfer Agent or such Paying Agent of all or any substantial part of its property is appointed, or if any order of any court is entered approving any petition filed by or against it under the provisions of any applicable bankruptcy or insolvency law, or if any public officer takes charge or control of the Registrar, the Transfer Agent or such Paying Agent or its property or affairs for the purposes of rehabilitation, conservation or liquidation.

 

	
16.7

	
Prior to the effective date of any such resignation or removal of the Registrar, the Transfer Agent or Paying Agent, or if the Registrar, the Transfer Agent or Paying Agent shall become unable to act as such, TMCC shall appoint a successor Registrar, Transfer Agent or Paying Agent. Upon the appointment of a successor Registrar, Transfer Agent or Paying Agent and its acceptance of such appointment, the retiring Registrar, Transfer Agent or Paying Agent shall, at the direction of TMCC, deliver and pay over to its successor any and all securities, money and any other properties then in its possession as Registrar, Transfer Agent or Paying Agent and shall thereupon cease to act hereunder.

 

	
16.8

	
Any variation, termination, appointment or change shall only take effect (other than termination under Subsection ‎16.6 hereof above, when it shall be of immediate effect) after not less than 30 or more than 45 days’ prior notice thereof shall have been given to the Noteholders in accordance with Condition 16.

 

	
16.9

	
Not less than 60 days prior to the date of any affected payment, each Paying Agent agrees that it shall notify TMCC in writing if (a) with respect to any payment scheduled to be made after 31 December 2013 on any Registered Note issued by TMCC after 18 March 2012, such relevant Paying Agent (i) is a “foreign financial institution” within the meaning of Section 1471(d)(4) of the U.S. Internal Revenue Code of 1986, as amended (the “Code”) and any U.S. Treasury Regulations thereunder and (ii) will not satisfy the requirements of Section 1471(b)(1) of the Code so that TMCC may make such payment without withholding of tax or (b) with respect to any payment of interest, discount or premium on a Registered Note issued by TMCC at any time, such relevant Paying Agent (i) is a “foreign person” within the meaning of U.S. Treasury Regulations section 1.1441-1(c)(2) and (ii) is not a “qualified intermediary” within the meaning of U.S. Treasury Regulations Section 1.1441-1(e)(5)(ii).  Any such notice shall constitute notice of resignation by such Paying Agent under Subsection ‎16.3.

 

	
17.

	
MEETINGS OF NOTEHOLDERS

 

	
17.1

	
Each of the Registrar, the Transfer Agent and the Paying Agents, on the request of any holder of Registered Notes, shall issue voting certificates and block voting instructions and shall forthwith give notice to TMCC and the Registrar by fax, with the original notice to follow by first class prepaid post, of any revocation or amendment of a block voting instruction.  Each of the Registrar, the Transfer Agent and the Paying Agents will keep a full and complete record of all voting certificates and block voting instructions issued by it and will, not less than 24 hours before the time appointed for holding a meeting or adjourned meeting, deposit at such place as may be notified to the Transfer Agent and the Paying Agents by the Registrar, for the purpose full particulars, all voting certificates and block voting instructions issued by it in respect of such meeting or adjourned meeting.

 

	
17.2

	
A meeting of holders of Registered Notes may be called by the holders of at least 10 per cent. in nominal amount of the outstanding Registered Notes affected thereby at any time and from time to time to make, give or take any request, demand, authorisation, direction, notice, 

 

 

  

Page 19

  

 

consent, waiver or other action provided by this Agreement or the Registered Notes to be made, given or taken by holders of Registered Notes.

 

	
17.3

	
The Registrar may at any time call a meeting of holders of Registered Notes of any Series for any purpose specified in Section ‎21 to be held at such time and at such place in Luxembourg or in London, England as the Registrar and TMCC shall determine.  Notice of every meeting of holders of Registered Notes, setting forth the time and the place of such meeting and in general terms the action proposed to be taken at such meeting, shall be given by the Registrar to TMCC and to the holders of the Registered Notes, in the same manner as provided in Condition 16, not less than 21 nor more than 180 days prior to the date fixed for the meeting.  If at any time TMCC or the holders of at least 10 per cent. in nominal amount of the outstanding Registered Notes shall have requested the Registrar to call a meeting of the holders to take any action authorised in Section ‎21, by written request setting forth in reasonable detail the action proposed to be taken at the meeting, and the Registrar shall not have given notice of such meeting within 21 days after receipt of such request or shall not thereafter proceed to cause the meeting to be held as provided herein, then TMCC, or the holders of Registered Notes in the amount above-specified, as the case may be, may determine the time and the place in Luxembourg or London for such meeting and may call such meeting by giving notice thereof as provided in this Subsection ‎17.3.

 

	
17.4

	
To be entitled to vote at any meeting of holders of Registered Notes, a person shall be a registered holder of outstanding Registered Notes at the time of such meeting, or a person appointed by an instrument in writing as proxy for such holder.

 

	
17.5

	
The quorum at any meeting called to adopt a resolution will be persons holding or representing a majority in aggregate nominal amount of the Registered Notes then outstanding affected thereby. In the absence of a quorum, within 30 minutes of the time appointed for any such meeting, the meeting may be adjourned for a period of not less than 10 days as determined by the chairman of the meeting prior to the adjournment of such meeting.  In the absence of a quorum at any such adjourned meeting, such adjourned meeting may be further adjourned for a period of not less than 10 days as determined by the chairman of the meeting prior to the adjournment of such adjourned meeting.  Notice of the reconvening of any adjourned meeting shall be given as provided in Subsection ‎17.3 except that such notice need be given not less than five days prior to the date on which the meeting is scheduled to be reconvened.  Notice of the reconvening of an adjourned meeting shall state expressly the percentage of the nominal amount of the outstanding Registered Notes which shall constitute a quorum.

 

The quorum at any adjourned meeting will be one or more persons holding or representing 25 per cent. in aggregate nominal amount of such Registered Notes then outstanding affected thereby. Any meeting of holders of Registered Notes at which a quorum is present may be adjourned from time to time by vote of a majority in nominal amount of the outstanding Registered Notes represented at the meeting, and the meeting may be held as so adjourned without further notice.  At a meeting or an adjourned meeting duly reconvened and at which a quorum is present as aforesaid, any resolution and all matters shall be effectively passed and decided if passed or decided by the persons entitled to vote a majority in nominal amount of the outstanding Registered Notes represented and voting at such meeting, provided that such amount approving such resolution shall be not less than 25 per cent. in nominal amount of the outstanding Registered Notes.

 

	
17.6

	
Any modifications, amendments or waivers under this Section ‎17 or Section ‎21 to this Agreement or to the terms and conditions of the Registered Notes will be conclusive and binding on all holders of Registered Notes whether or not they have given such consent or 

 

  

Page 20

  

 

were present at any meeting, and whether or not notation of such modifications, amendments or waivers is made upon the Registered Notes.  It shall not be necessary for the consent of the holders of Registered Notes under Condition 15 to approve the particular form of any proposed amendment, but it shall be sufficient if such consent shall approve the substance thereof.

 

	
17.7

	
Registered Notes authenticated and delivered after the execution of any amendment under this Section ‎17 or Section ‎21 to this Agreement may bear a notation in form approved by the Registrar and the Transfer Agent as to any matter provided for in such amendment to this Agreement. New Registered Notes so modified as to conform, in the opinion of the Registrar, the Transfer Agent and TMCC, to any modification contained in any such amendment may be prepared by TMCC, authenticated by the Registrar or the Transfer Agent and delivered in exchange for or on transfer or the Registered Notes then outstanding affected thereby.

 

	
17.8

	
The Registrar may make such reasonable regulations as it may deem advisable for any meeting of holders of Registered Notes in regard to proof of the holding of Registered Notes and of the appointment of proxies and in regard to the appointment and duties of inspectors of votes, the submission and examination of proxies, certificates and other evidence of the right to vote, and such other matters concerning the conduct of the meeting as it shall deem appropriate.  The Registrar shall, by an instrument in writing, appoint a temporary chairman of the meeting, unless the meeting shall have been called by TMCC or holders of Registered Notes as provided above, in which case TMCC or the holders of Registered Notes calling the meeting, as the case may be, shall in like manner appoint a temporary chairman.  A permanent chairman and a permanent secretary of the meeting shall be elected by vote of the persons entitled to vote a majority in nominal amount of the outstanding Registered Notes represented at the meeting.  The chairman of the meeting shall have no right to vote, except as a holder of Registered Notes or proxy.  A record, at least in triplicate, of the proceedings of each meeting of holders of Registered Notes shall be prepared, and one such copy shall be delivered to TMCC and another to the Registrar to be preserved by the Registrar.

 

	
18.

	
FURTHER ISSUES

 

TMCC shall be at liberty from time to time without the consent of the holders of the Registered Notes to create and issue further Registered Notes ranking pari passu in all respects (or in all respects save for the Issue Date, the amount and the date of the first payment of interest thereon and/or the purchase price) and so that the same shall be consolidated and form a single series with the outstanding Registered Notes and references in this Agreement to “Registered Notes” shall be construed accordingly.

 

	
19.

	
REPORTS

 

The Registrar and the Transfer Agent shall furnish to TMCC such reports as may be required by TMCC relative to the Registrar's and the Transfer Agent’s performance under this Agreement.  TMCC may, whenever it deems it necessary, inspect books and records maintained by the Registrar and the Transfer Agent pursuant to this Agreement, if any.

 

	
20.

	
FORWARDING OF NOTICE

 

If the Registrar shall receive any notice or demand addressed to TMCC pursuant to the provisions of the Registered Notes, the Registrar shall promptly forward such notice or demand to TMCC.

 

  

Page 21

  

	
21.

	
AMENDMENTS

 

This Agreement and the Registered Notes may be amended by TMCC and the Registrar and the Transfer Agent, without the consent of the holder of any Registered Note (a) for the purpose of curing any ambiguity, or of curing, correcting or supplementing any defective provision contained herein or therein, or to evidence the succession of another corporation to TMCC as provided in Condition 13 or provide for substitution of TMCC as provided in Condition 14, (b) to make any further modifications of the terms of this Agreement necessary or desirable to allow for the issuance of any additional Registered Notes (which modifications shall not be materially adverse to holders of outstanding Registered Notes), or (c) in any manner which TMCC and the Registrar and the Transfer Agent may deem necessary or desirable and which shall not materially adversely affect the interests of the holders of the Registered Notes.  In addition, with the written consent of the holders of a majority in aggregate nominal amount of the Registered Notes then outstanding affected thereby, or by resolution adopted by the holders of a majority in aggregate nominal amount of Registered Notes then outstanding present or represented at a meeting of the holders of the Registered Notes affected thereby at which a quorum is present (provided that such resolution shall be approved by the holders of not less than 25 per cent. of the aggregate nominal amount of Registered Notes then outstanding affected thereby), this Agreement or the terms and conditions of the Registered Notes may be modified or amended by the parties hereto or thereto, and future compliance and past defaults waived, in each case as provided in Conditions 9 and 15 and subject to the limitations therein provided (including that no such agreement shall, without the consent or the affirmative vote of the holder of each Registered Note affected thereby, (i) change the stated maturity of the principal of or any instalment of interest on any Registered Note, (ii) reduce the nominal amount of or interest on any Registered Note, (iii) change the obligation of TMCC to pay Additional Amounts as provided in Condition 7, (iv) reduce the percentage in nominal amount of outstanding Registered Notes the consent of the holders of which is necessary to modify or amend this Agreement or the terms and conditions of the Registered Notes or to waive any future compliance or past default, or (v) reduce the percentage in nominal amount of outstanding Registered Notes the consent of the holders of which is required at any meeting of holders of Registered Notes at which a resolution is adopted).

 

	
22.

	
REDENOMINATION AND EXCHANGE

 

Clause 30 of the Programme Agency Agreement is incorporated in this agreement mutatis mutandis.

 

	
23.

	
NOTICES

 

	
23.1

	
Any communications to the Registrar with respect to this Agreement shall be addressed to The Bank of New York Mellon (Luxembourg) S.A., Vertigo Building – Polaris, 2-4 rue Eugène Ruppert, L-2453 Luxembourg, Attention: Corporate Trust Admin., Fax No.: +352 24 525 329;

 

	
23.2

	
Any communications to the Transfer Agent with respect to this Agreement shall be addressed to The Bank of New York Mellon, One Canada Square, Canary Wharf, London E14 5AL, United Kingdom, Attention:Mark Elsom, Corporate Trust, Fax No.: +44 (0)20 7964 2536; and

 

	
23.3

	
Any communications to TMCC with respect to this Agreement shall be addressed to 19001 South Western Avenue, EF12, Torrance, California 90501, United States, Attention: Group Vice President, Treasury, Fax No. +1 310 468 6194;

 

(or such other address as shall be specified in writing by the Registrar, the Transfer Agent or TMCC, as the case may be) and shall be delivered in person or sent by first class prepaid post or by facsimile transmission subject, in the case of facsimile transmission, to confirmation of receipt by telephone. Such notice shall take effect in the case of delivery in person, at the time of delivery, in the case of delivery by first class prepaid post seven (7) Business Days after 

 

  

Page 22

  

 

dispatch and in the case of delivery by facsimile transmission, at the time of confirmation by telephone.

 

All notices to the holders of Registered Notes will be mailed or delivered to such holders at their addresses indicated in records maintained by the Registrar.  Any such notice shall be deemed to have been given on the date of such delivery or publication, as the case may be, or in the case of mailing, on the second Business Day after such mailing.  For as long as the Registered Notes are represented by one or more Registered Global Notes, the Registrar or the Transfer Agent may provide such notices to the applicable Clearing System to be provided by the applicable Clearing System to its direct and indirect participants holding an interest in the Registered Notes in accordance with the rules and procedures of the applicable Clearing System.

 

	
24.

	
DEED POLL

 

	
24.1

	
If any Registered Global Note becomes void in accordance with its terms, TMCC covenants with each Relevant Account Holder (other than any Relevant Account Holder which is an account holder of any other Relevant Clearing System) that each Relevant Account Holder shall automatically acquire at the Relevant Time, without the need for any further action on behalf of any person, against TMCC all those rights which the Relevant Account Holder would have had if at the Relevant Time it held and beneficially owned executed and authenticated Definitive Registered Notes in respect of each Underlying Note represented by the Registered Global Note which the Relevant Account Holder has credited to its securities account with the Relevant Clearing System at the Relevant Time.  TMCC’s obligation under this Section ‎24 shall be a separate and independent obligation by reference to each Underlying Note which a Relevant Account Holder has credited to its securities account with the Relevant Clearing System and TMCC agrees that a Relevant Account Holder may assign its rights under this Section ‎24 in whole or in part.

 

	
24.2

	
The records of the relevant Clearing System shall be conclusive evidence of the identity of the Relevant Account Holders and the number of Underlying Notes credited to the securities account of each Relevant Account Holder. For these purposes a statement issued by the relevant Clearing System stating:

 

	
  

	
(a)

	
the name of the Relevant Account Holder to which the statement is issued; and

 

	
  

	
(b)

	
the aggregate nominal amount of Underlying Notes credited to the securities account of the Relevant Account Holder as at the opening of business on the first day following the Relevant Time on which the Relevant Clearing System is open for business,

 

shall be conclusive evidence of the records of the Relevant Clearing System at the Relevant Time.

 

	
24.3

	
In the event of a dispute, the determination of the Relevant Time by the Relevant Clearing System shall (in the absence of manifest error) be final and conclusive for all purposes in connection with the Relevant Account Holders with securities accounts with the relevant Clearing System.

 

	
24.4

	
TMCC undertakes in favour of each Relevant Account Holder that, in relation to any payment to be made by it under this Section ‎24, it will comply with the provisions of Condition 7 to the extent that they apply to any payments in respect of Underlying Notes as if those provisions had been set out in full in this Section ‎24.

 

  

Page 23

  

 

	
24.5

	
TMCC will pay any stamp and other duties and taxes, including interest and penalties, payable on or in connection with the execution of this Agreement and any action taken by any Relevant Account Holder to enforce the provisions of this Section ‎24.

 

	
24.6

	
This Section ‎24 and Section ‎26 shall take effect as a Deed Poll for the benefit of the Relevant Account Holders from time to time.  This Agreement shall be deposited with and held by the common depositary for Euroclear and Clearstream, Luxembourg until all the obligations of TMCC under this Section ‎24  have been discharged in full.

 

	
24.7

	
TMCC acknowledges the right of every Relevant Account Holder to the production of, and the right of every Relevant Account Holder to obtain (upon payment of a reasonable charge) a copy of, this Agreement, and further acknowledges and covenants that the obligations binding upon it contained in this Section ‎24 are owed to, and shall be for the account of, each and every Relevant Account Holder, and that each Relevant Account Holder shall be entitled severally to enforce those obligations against TMCC.

 

	
25.

	
CONTRACTS (RIGHTS OF THIRD PARTIES) ACT 1999

 

Save for Section 24, a person who is not a party to this Agreement has no right by virtue of the Contracts (Rights of Third Parties) Act 1999 to enforce any term of this Agreement, but this does not affect any right or remedy of a third party which exists or is available apart from that Act.

 

	
26.

	
GOVERNING LAW AND SUBMISSION TO JURISDICTION

 

	
26.1

	
This Agreement and any non-contractual obligations arising out of or in connection with this Agreement shall be governed by, and construed in accordance with, the laws of England.

 

	
26.2

	
TMCC hereby irrevocably agrees, for the exclusive benefit of the Registrar, the Transfer Agent, the Paying Agents and the Relevant Account Holders, that the courts of England are to have jurisdiction to settle any disputes which may arise out of or in connection with this Agreement (including a dispute relating to any non-contractual obligations arising out of or in connection with this Agreement), and that accordingly any suit, action or proceedings (together referred to as “Proceedings”) arising out of or in connection with this Agreement (including any Proceedings relating to any non-contractual obligations arising out of or in connection with this Agreement) may be brought in such courts.  TMCC hereby irrevocably waives any objection which it may have to the laying of the venue of any such Proceedings in any such court and any claim that any such Proceedings have been brought in an inconvenient forum and hereby further irrevocably agrees that a judgment in any such Proceedings brought in the English courts shall be conclusive and binding upon TMCC and may be enforced in the courts of any other jurisdiction.  Nothing contained in this Section ‎26 shall limit any right to take Proceedings against TMCC in any other court of competent jurisdiction, nor shall the taking of Proceedings in one or more jurisdictions preclude the taking of Proceedings in any other jurisdiction, whether concurrently or not.  TMCC hereby appoints Toyota Financial Services (UK) PLC of Great Burgh, Burgh Heath, Epsom, Surrey KT18 5UZ, England as its agent for service of process, and agrees that, in the event of Toyota Financial Services (UK) PLC ceasing so to act or ceasing to be registered in England, it will appoint another person as its agent for service of process in England in respect of any Proceedings.

 

	
27.

	
COUNTERPARTS

 

This Agreement may be signed in any number of counterparts, and by each party on separate counterparts.  Each counterpart is an original, but all counterparts shall together constitute one and the 

 

  

Page 24

  

 

same instrument.  Delivery of a counterpart of this Agreement by e-mail attachment or telecopy shall be an effective mode of delivery.

 

	
28.

	
HEADINGS

 

The headings for the sections of this Agreement are for convenience only and are not part of this Agreement.

 

	
29.

	
STAMP AND OTHER TAXES

 

TMCC agrees to pay any and all taxes, stamp and other documentary taxes or duties which may be payable in connection with the execution, delivery, performance and enforcement of this Agreement by the Registrar, the Transfer Agent and the Paying Agents.

 

  

Page 25

  

 

IN WITNESS WHEREOF, the parties hereto have executed this Agreement on the date first above written.

	  	
TOYOTA MOTOR CREDIT CORPORATION

 

 

	 	  	
DAVID PELLICCIONI

	  
	 	  	
 

	  
	 	
By:

	
Name:

	
David Pelliccioni

	  
	 	  	
Title:

	
SVP, Chief Administrative

	  
	 	  	  	
Officer and Secretary

	  

	  	
19001 South Western Avenue, EF12

	  	
Torrance

	  	
California 90501

	  	
United States

	  	  
	  	
Telephone: +1 310 468 4001

	  	
Telefax:  +1 310 468 6194

	  	
THE BANK OF NEW YORK MELLON (LUXEMBOURG) S.A.

	 	  	
MELISSA LAIDLEY

	 
	 	  	
 

	 
	 	
By:

	
Name:

	
Melissa Laidley

	 
	 	  	
Title:

	
Vice President

	 

	  	
Vertigo Building - Polaris

	  	
2-4 rue Eugène Ruppert

	  	
L-2453 Luxembourg

	  	  
	  	
Telephone: +352 24 52 5329

	  	
Telefax:  +352 24 52 4204

	  	
THE BANK OF NEW YORK MELLON, acting through its London branch

	 	  	
MELISSA LAIDLEY

	 
	 	  	
 

	 
	 	
By:

	
Name:

	
Melissa Laidley

	 
	 	  	
Title:

	
Vice President

	 

	  	
One Canada Square

	  	
Canary Wharf

	  	
London E14 5AL

	  	
United Kingdom

	  	  
	  	
Telephone:  +44 (0)20 7964 8768/4875

	  	
Telefax:  +44 (0)20 7964 2536

  

Page 26

  

SCHEDULE 1

FORM OF REGISTERED GLOBAL NOTE

 

THE NOTES REPRESENTED BY THIS GLOBAL NOTE HAVE NOT BEEN REGISTERED UNDER THE US SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”) OR WITH ANY SECURITIES REGULATORY AUTHORITY OF ANY STATE OR OTHER JURISDICTION OF THE UNITED STATES AND MAY NOT BE OFFERED, SOLD, PLEDGED OR OTHERWISE TRANSFERRED UNDER THE SECURITIES ACT EXCEPT IN AN OFFSHORE TRANSACTION IN ACCORDANCE WITH RULE 903 OR RULE 904 OF REGULATION S UNDER THE SECURITIES ACT.

 

	
ISIN:  [                              ]

	
Certif. No.:  [                             ]

	 	 
	
Common Code :  [                              ]

	
Serial Number:  [                       ]

	 	 
	
Series Number:  [                          ]

	
 

TOYOTA MOTOR CREDIT CORPORATION

(a company incorporated with limited liability in California, United States)

REGISTERED GLOBAL NOTE

representing

[Specified Currency and Nominal Amount of Series]

NOTES DUE [Year of Maturity]

The Issuer hereby certifies that [Name of registered holder] is, at the date hereof, entered in the Register (defined below) as the holder of the aggregate Nominal Amount of                                             of a duly authorised issue of Notes of [Specified Currency and Denomination] (the “Notes”) of Toyota Motor Credit Corporation (the “Issuer”). References herein to the Conditions shall be to the Terms and Conditions of the Notes as set out in [Appendix A to the Programme Agency Agreement (as defined below)] [specify other document in which Conditions set out if in a different form] as supplemented and replaced or modified (as referred to in the said Terms and Conditions) by the Final Terms relating to the Notes, a copy of which is annexed hereto (the “Conditions”).  Words and expressions defined in the Conditions shall bear the same meanings when used in this Registered Global Note.  This Registered Global Note is issued subject to, and with the benefit of, the Conditions and an amended and restated agency agreement dated 16 September 2011 (the “Programme Agency Agreement”) and made between Toyota Motor Finance (Netherlands) B.V., Toyota Credit Canada Inc., Toyota Finance Australia Limited, Toyota Motor Credit Corporation and The Bank of New York Mellon as agent for the holders of the Notes.

 

In addition, this Registered Global Note and all the rights of the registered holder hereof are expressly subject to a note agency agreement dated 16 September 2011 (the “Note Agency Agreement” which term includes any agreement supplemental thereto), between the Issuer and The Bank of New York Mellon (Luxembourg) S.A., as registrar and transfer agent (the “Registrar”, which term includes any successor as registrar and transfer agent) and The Bank of New York Mellon, acting through its London branch, as transfer agent and paying agent (the “Transfer Agent” which term includes any successor as transfer agent and paying agent).  This Registered Global Note, the Programme Agency Agreement and the Note Agency Agreement together constitute a contract. The registered holder by acceptance of this Registered Global Note assents to and is deemed to have notice of the Programme Agency Agreement and the Note Agency Agreement.  Further references herein to principal or interest shall be deemed to also refer to any additional amounts which may be payable hereunder.

 

  

Page 27

  

 

The Issuer, the Agent, the Registrar and the Transfer Agent may treat the holder in whose name this Registered Global Note is registered as the absolute owner hereof for all purposes, whether or not this Registered Global Note is overdue, and none of the Issuer, the Registrar or the Transfer Agent shall be affected by notice to the contrary. All payments to or on the order of the registered holder of this Registered Global Note are valid and effectual to discharge the liability of the Issuer and the Registrar and the Transfer Agent hereon to the extent of the sum or sums paid.

 

The Issuer, subject to and in accordance with the Conditions, the Programme Agency Agreement and the Note Agency Agreement, agrees to pay to such registered holder on each Instalment Date (if the Notes are repayable in instalments) and on the Maturity Date and/or on such earlier date(s) as the Notes or any of them may become due and repayable in accordance with the Conditions, the Programme Agency Agreement and the Note Agency Agreement, the amount payable in respect of the Notes represented by this Registered Global Note (as specified above) or such lesser amount as is payable following any such redemption, payment of instalment or purchase and cancellation as is referred to below and to pay interest (if any) on the nominal amount of the Notes from time to time represented by this Registered Global Note calculated and payable as provided in the Conditions, the Programme Agency Agreement and the Note Agency Agreement together with any other sums payable under the Conditions, the Programme Agency Agreement and the Note Agency Agreement, upon presentation and, at maturity, surrender of this Registered Global Note at the specified office of the Registrar at Luxembourg or at the specified office of the Transfer Agent at London, England [insert  in the case of Notes clearing in a Clearing System] or such other specified office as may be specified for this purpose in accordance with the Conditions.

 

On any redemption or payment of an instalment or interest being made in respect of, or purchase and cancellation of, any of the Notes represented by this Registered Global Note details of such redemption, payment or purchase and cancellation (as the case may be) shall be entered by or on behalf of the Issuer in Schedule One hereto and the relevant space in Schedule One hereto recording any such redemption, payment or purchase and cancellation (as the case may be) shall be signed by or on behalf of the Issuer.  Upon any such redemption, payment or purchase and cancellation the nominal amount of this Registered Global Note and the Notes held by the registered holder hereof shall be reduced by the nominal amount of such Notes so redeemed or purchased and cancelled or the amount of such instalment so paid.  On any redemption or purchase and cancellation of any of the Notes represented by this Registered Global Note, details of such redemption or purchase and cancellation shall be entered by or on behalf of the Issuer in the Register (as defined below) recording any such redemption, payment or purchase and cancellation and shall be signed by or on behalf of the Issuer and, where the applicable Final Terms indicates this Registered Global Note is intended to be held in a manner that would allow Eurosystem eligibility, the Transfer Agent shall instruct Euroclear and Clearstream, Luxembourg to make the appropriate entries in their records to reflect such redemption, payment or purchase and cancellation and the remaining outstanding aggregate nominal amount of the Notes.  The nominal amount of this Registered Global Note and of the Notes held by the registered holder hereof following any such redemption, payment or purchase and cancellation as aforesaid or any transfer or exchange as referred to below shall be the nominal amount most recently entered in the Register and reflected in the relevant column in Part II or III of Schedule One hereto or in Schedule Two hereto.

 

Interest payable, and punctually paid or duly provided for, on any Interest Payment Date and the principal payable on the Maturity Date will be paid to the person in whose name this Registered Global Note (or one or more predecessor Registered Global Notes) is registered at close of the business day of Euroclear and Clearstream, Luxembourg (or any other agreed clearing system in which this Registered Global Note is being held) prior to such Interest Payment Date or the Maturity Date, as the case may be (each such day a “Regular Record Date”). Any such interest or principal, as the case may be, not so punctually paid or duly provided for will be paid to the person in whose name this Registered Global Note (or one or more predecessor Registered Global Note) is registered at the close of business on a special record date for the payment of such defaulted interest or principal to be 

 

  

Page 28

  

 

 

fixed by the Registrar, notice whereof shall be given to the registered holder hereof not less than 10 days prior to such special record date, or be paid at any time in any other lawful manner.

 

In the event that this Registered Global Note (or any part of it) has become due and repayable in accordance with Condition 9 and payment in full of the amount due has not been made to the registered holder in accordance with the provisions set out above then this Registered Global Note will become void at 8.00 p.m. (London time) on such day and the registered holder will have no further rights under this Registered Global Note (but without prejudice to the rights which the registered holder or any other person may have under Section 24 of the Note Agency Agreement in respect of the Notes issued under the Programme Agreement pursuant to which this Registered Global Note is issued).

 

This Registered Global Note may be exchanged in whole but not in part (free of charge) for Notes in definitive registered form (each a “Definitive Registered Note”) without coupons attached only upon the occurrence of an Exchange Event.

 

An “Exchange Event” means:

 

	
(1)

	
an Event of Default (as defined in Condition 9) has occurred and is continuing; or

 

	
(2)

	
the Issuer has been notified that both Euroclear and Clearstream, Luxembourg (or any other agreed clearing system in which this Registered Global Note is being held) have been closed for business for a continuous period of 14 days (other than by reason of holiday, statutory or otherwise) or have announced an intention permanently to cease business or have in fact done so and, as a result, Euroclear and Clearstream, Luxembourg or such other agreed clearing system in which this Registered Global Note is being held are no longer willing or able to discharge properly their responsibilities with respect to this Registered Global Note and the Transfer Agent and the Issuer are unable to locate a qualified successor; or

 

	
(3)

	
the Issuer has or will become subject to adverse tax consequences which would not be suffered were the Notes represented by this Registered Global Note in definitive registered form.

 

Upon the occurrence of an Exchange Event the Issuer will promptly give notice to Noteholders in accordance with Condition 16; and the relevant Clearing System (acting on the instructions of any holder of an interest in this Registered Global Note) may give notice to the Registrar or the Transfer Agent requesting exchange.

 

Any such exchange shall occur not later than 45 days after the date of receipt of the first relevant notice by the Registrar or the Transfer Agent, as the case may be.  The exchange will be made upon presentation of this Registered Global Note by the registered holder hereof on any day (other than a Saturday or Sunday) on which banks are open for general business in London, England and Luxembourg.  The aggregate nominal amount of Definitive Registered Notes issued upon an exchange of this Registered Global Note will be equal to the aggregate nominal amount of this Registered Global Note at the time of such exchange.  On an exchange of the whole of this Registered Global Note, this Registered Global Note shall be surrendered to the Registrar or the Transfer Agent, as the case may be, and, where the applicable Final Terms indicates this Registered Global Note is intended to be held in a manner that would allow Eurosystem eligibility, the Transfer Agent shall instruct Euroclear and Clearstream, Luxembourg to make the appropriate entries in their records to reflect such exchange.

 

On or after such exchange, the Registrar, Transfer Agent and any other Paying Agent shall make all payments to be made in respect of such Definitive Registered Notes to the registered holders thereof regardless of whether such exchange occurred after the record date for such payment.

 

  

Page 29

  

Notes represented by this Registered Global Note are transferable only in accordance with, and subject to, the provisions hereof and of the Note Agency Agreement (as amended and supplemented or restated from time to time) and the rules and operating procedures of the relevant Clearing System.

 

Title to this Registered Global Note passes by due endorsement in the Register.  The Issuer shall procure that due registration of transfer shall be entered in the Register maintained by the Registrar.  Unless otherwise required by law, only the duly registered holder or if more than one person is so registered, the first-named of such persons is entitled to payment in respect of this Registered Global Note.

 

The Registrar has been appointed registrar for the Notes, and the Registrar will maintain at its office in Luxembourg, a register (herein, the “Register”) for the registration of, and the registration of transfers and exchanges of, Notes. Subject to the limitations, terms and conditions set forth in the Conditions, herein and in the Note Agency Agreement, this Registered Global Note may be transferred at the aforesaid office of the Registrar or at the office of the Transfer Agent by surrendering this Registered Global Note for cancellation, and thereupon the Registrar shall issue and register, or the Transfer Agent shall issue and procure the Registrar to register, in the name of the transferee, in exchange herefor, a new Registered Global Note having identical terms and conditions and having a like aggregate nominal amount in authorised denominations. If this Registered Global Note is surrendered for transfer, it shall be accompanied by a written instrument of transfer in form satisfactory to the Registrar or the Transfer Agent and executed by the registered holder in person or by the holder’s attorney duly authorised in writing. No service charge will be imposed for any such transfers and exchanges, but the Issuer may require payment of a sum sufficient to cover any stamp or other tax or other governmental charge in connection therewith.

 

The Registrar and the Transfer Agent shall not be required to register or procure registration of any transfer or exchange of this Registered Global Note during the period from any Regular Record Date to the corresponding Interest Payment Date or Maturity Date or from the close of business on the 15th calendar day (whether or not such day is a business day in Luxembourg) preceding the date of early redemption (the “Redemption Record Date”) to the date of early redemption (the “Redemption Date”). None of the Issuer, the Registrar or the Transfer Agent shall be required to make any exchange of Notes if as a result thereof, the Issuer may incur adverse tax or other similar consequences under the laws or regulations of any jurisdiction in effect at the time of the exchange.

 

On any transfer pursuant to which either (i) Notes represented by this Registered Global Note are no longer to be so represented or (ii) Notes not so represented are to be so represented details of such transfer shall be entered by or on behalf of the Issuer in Schedule Two hereto and the relevant space in Schedule Two hereto recording such transfer shall be signed by or on behalf of the Issuer and in the Register, whereupon the nominal amount of this Registered Global Note and the Notes held by the registered holder hereof shall be increased or reduced (as the case may be) by the nominal amount so transferred.  Where the applicable Final Terms indicates this Registered Global Note is intended to be held in a manner that would allow Eurosystem eligibility, the Transfer Agent shall instruct Euroclear and Clearstream, Luxembourg to make the appropriate entries in their records to reflect such transfer of the Notes.

 

Subject as provided in the Note Agency Agreement, each person who is for the time being shown in the records of the relevant Clearing System as entitled to a particular nominal amount of the Notes represented by this Registered Global Note (in which regard any certificate or other document issued by the relevant Clearing System as to the nominal amount of such Notes standing to the account of any person shall be conclusive and binding for all purposes save in the case of manifest error) shall be deemed to be the holder of such nominal amount of the Notes for all purposes other than with respect to payments on and voting, giving consents and making requests in respect of, such nominal amount of such Notes for which purpose the registered holder of this Registered Global Note shall be deemed to be the holder of such nominal amount of the Notes in accordance with and subject to the terms of this Registered Global Note.

 

  

Page 30

  

Upon a further issue of Notes, as contemplated by the Note Agency Agreement and the Conditions, details of such further issue shall be entered by or on behalf of the Issuer in Schedule One hereto to reflect the increase of the nominal amount by an amount equal to the aggregate nominal amount of Notes so issued and to be registered in the name of [         ], whereupon the nominal amount hereof shall be increased for all purposes by the amount so issued and so noted, or the Issuer shall issue or cause to be issued an additional Registered Global Note to evidence such further issue of Notes. Where the applicable Final Terms indicates this Registered Global Note is intended to be held in a manner that would allow Eurosystem eligibility, the Transfer Agent shall instruct Euroclear and Clearstream, Luxembourg to make the appropriate entries in their records to reflect such further issue and the increase in the outstanding aggregate nominal amount of the Notes.

 

In the event of any discrepancy between the nominal amount of this Registered Global Note or any Schedule to this Registered Global Note and the nominal amount of this Registered Global Note as shown on the Register, the nominal amount of this Registered Global Note as shown on the Register shall prevail.

 

This Registered Global Note and any non-contractual obligations arising out of or in connection with it shall be governed by, and construed in accordance with, English law.

 

No rights are conferred on any person by virtue of the Contracts (Rights of Third Parties) Act 1999 to enforce any term of this Global Note, but this does not affect any right or remedy of any person which exists or is available apart from that Act.

 

This Registered Global Note shall not be valid unless authenticated by The Bank of New York Mellon (Luxembourg) S.A., as Registrar or The Bank of New York Mellon acting through its London branch, as Transfer Agent]1.

IN WITNESS whereof the Issuer has caused this Global Note to be duly executed on its behalf.

TOYOTA MOTOR CREDIT CORPORATION

	
By:

	
 

	  
	  	
Authorised Signatory

	  

1       Delete as applicable.

  

Page 31

  

Authenticated by

[The Bank of New York Mellon (Luxembourg) S.A., as Registrar][The Bank of New York Mellon acting through its London branch, as Transfer Agent]2.

	
By:

	
 

	  
	  	
Authorised Signatory

	  

2       Delete as applicable.

  

Page 32

  

Schedule One

PART I

INTEREST PAYMENTS

	
Interest

Payment

Date

	
Date of Payment

	
Total Amount of Interest Payable

	
Amount of Interest Paid

	
Confirmation of payment by or on behalf of the Issuer

	
First

 

	  	  	  	  
	
Second

	  	  	  	  

 

[continue numbering until the appropriate number of Interest Payment Dates for the particular issue of Notes is reached]

  

Page 33

  

PART II

 

REDEMPTIONS

 

	
Date made

	
Part of nominal amount of this Registered Global Note redeemed

	
Remaining nominal amount of this Registered Global Note following such redemption

	
Remaining amount payable under this Registered Global Note following such redemption*

	
Confirmation of redemption by or on behalf or the Issuer

	  	  	  	  	  
	  	  	  	  	  
	  	  	  	  	  
	  	  	  	  	  
	  	  	  	  	  
	  	  	  	  	  
	  	  	  	  	  
	  	  	  	  	  
	  	  	  	  	  
	  	  	  	  	  
	 	 	 	 	 

 

 

*       See most recent entry in Part II, III or IV or Schedule Two in order to determine this amount.

  

Page 34

  

PART III

 

PURCHASES AND CANCELLATIONS

 

	
Date made

	
Part of nominal amount of this Registered Global Note purchased and cancelled

	
Remaining nominal amount of this Registered Global Note following such purchase and cancellation

	
Remaining amount payable under this Registered Global Note following such purchase and cancellation*

	
Confirmation of purchase and cancellation by or on behalf of the Issuer

	  	  	  	  	  
	  	  	  	  	  
	  	  	  	  	  
	  	  	  	  	  
	  	  	  	  	  
	  	  	  	  	  
	  	  	  	  	  
	  	  	  	  	  
	  	  	  	  	  
	  	  	  	  	  
	  	  	  	  	  
	  	  	  	  	  

 

 

 

 *       See most recent entry in Part II, III or IV or Schedule Two in order to determine this amount.

  

Page 35

  

Schedule Two

SCHEDULE OF TRANSFERS AND EXCHANGES

The following transfers affecting the nominal amount of this Registered Global Note have been made:

	
Date made

	
Nominal amount

of Notes

transferred or exchanged

	
Remaining/increased nominal amount of this Registered Global Note following such transfer*or exchange

	
Notation made by or on behalf of the Issuer

	  	  	  	  
	  	  	  	  
	  	  	  	  
	  	  	  	  
	  	  	  	  
	  	  	  	  
	  	  	  	  
	  	  	  	  
	  	  	  	  
	  	  	  	  
	  	  	  	  
	  	  	  	  
	  	  	  	  
	  	  	  	  
	  	  	  	  
	  	  	  	  
	  	  	  	  
	  	  	  	  
	  	  	  	  
	  	  	  	  
	  	  	  	  
	  	  	  	  
	  	  	  	  
	  	  	  	  
	  	  	  	  
	  	  	  	  
	  	  	  	  
	  	  	  	  
	  	  	  	  
	  	  	  	  
	  	  	  	  
	  	  	  	  
	  	  	  	  
	  	  	  	  
	  	  	  	  

 

 

 

*See most recent entry in Part II or III of Schedule One or in this Schedule Two in order to determine this amount.

  

Page 36

  

 

SCHEDULE 2

 

FORM OF DEFINITIVE REGISTERED NOTE

 

THE NOTES REPRESENTED BY THIS NOTE HAVE NOT BEEN REGISTERED UNDER THE US SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”) OR WITH ANY SECURITIES REGULATORY AUTHORITY OF ANY STATE OR OTHER JURISDICTION OF THE UNITED STATES AND MAY NOT BE OFFERED, SOLD, PLEDGED OR OTHERWISE TRANSFERRED UNDER THE SECURITIES ACT EXCEPT IN AN OFFSHORE TRANSACTION IN ACCORDANCE WITH RULE 903 OR RULE 904 OF REGULATION S UNDER THE SECURITIES ACT.

 

	
ISIN:  [                              ]

	
Certif. No.:  [                             ]

	 	 
	
[Common Code :  [                              ]]

	
Serial Number:  [                       ]

	 	 
	
Series Number:  [                          ]

	
 

 

TOYOTA MOTOR CREDIT CORPORATION

(a company incorporated with limited liability in California, United States)

DEFINITIVE REGISTERED NOTE

representing

[Specified Currency and Nominal Amount of Series]

NOTES DUE [Year of Maturity]

This Note is one of a Series of Notes of [Specified Currency and Denomination] each (“Notes”) of Toyota Motor Credit Corporation (the “Issuer”) issued as of the date specified in the Final Terms attached hereto or endorsed hereon and maturing on the date so specified.  References herein to the Conditions shall be to the Terms and Conditions endorsed hereon as supplemented or modified by the Final Terms.  This Note is issued subject to, and with the benefit of, an amended and restated agency agreement dated 16 September 2011 (the “Programme Agency Agreement”) and made between, inter alia, Toyota Motor Finance (Netherlands) B.V., Toyota Credit Canada Inc., Toyota Finance Australia Limited, Toyota Motor Credit Corporation and The Bank of New York Mellon as Agent for the holders of the Notes.  In addition, this Note and all the rights of the registered holder hereof are expressly subject to the Programme Agency Agreement and a note agency agreement dated 16 September 2011 (the “Note Agency Agreement” which term includes any agreement supplemental thereto), between the Issuer, The Bank of New York Mellon (Luxembourg) S.A., as registrar and transfer agent (the “Registrar”, which term includes any successor as registrar and transfer agent) and The Bank of New York Mellon, acting through its London branch, as transfer agent and paying agent (the “Transfer Agent” which term includes any successor as transfer agent and paying agent).

 

This Note, the Programme Agency Agreement and the Note Agency Agreement together constitute a contract. The registered holder by acceptance of this Note assents to and is deemed to have notice of the Programme Agency Agreement and the Note Agency Agreement.  Further references herein to principal or interest shall be deemed to also refer to any additional amounts which may be payable hereunder.

 

THIS IS TO CERTIFY that                                                           is/are the registered holder(s) of one of the above-mentioned Notes and is/are entitled on the Maturity Date or on such earlier date as this Note may become due and repayable in accordance with the Conditions, the Note Agency Agreement and the Programme Agency Agreement, to the amount payable on redemption of this Note and to 

 

  

Page 37

  

 

receive interest (if any) on the nominal amount of this Note calculated and payable as provided in the Conditions, the Note Agency Agreement and the Programme Agency Agreement together with any other sums payable under the Conditions, the Note Agency Agreement and the Programme Agency Agreement.

 

Title to this Note passes by due endorsement in the Register (as defined below).  The Issuer shall procure that due registration of transfer shall be entered in the Register maintained by the Registrar.  Unless otherwise required by law, only the duly registered holder or if more than one person is so registered, the first-named of such persons is entitled to payment in respect of this Note.

 

The Registrar has been appointed registrar for the Notes, and the Registrar will maintain at its office in Luxembourg, a register (herein, the “Register”) for the registration of, and the registration of transfers and exchanges of, Notes. Subject to the limitations, terms and conditions set forth in the Conditions, herein and in the Note Agency Agreement, this Note may be transferred at the aforesaid office of the Registrar by surrendering this Note for cancellation, and thereupon the Registrar shall issue and register in the name of the transferee, in exchange herefor, a new Note having identical terms and conditions and having a like aggregate nominal amount in authorised denominations. If this Note is surrendered for transfer, it shall be accompanied by a written instrument of transfer in form satisfactory to the Registrar and executed by the registered holder in person or by the holder's attorney duly authorised in writing. No service charge will be imposed for any such transfers and exchanges, but the Issuer may require payment of a sum sufficient to cover any stamp or other tax or other governmental charge in connection therewith.

 

The Issuer, the Agent, the Registrar, the Transfer Agent and any other Paying Agent may treat the holder in whose name this Note is registered as the absolute owner hereof for all purposes, whether or not this Note is overdue, and none of the Issuer, the Registrar, the Transfer Agent or any other Paying Agent shall be affected by notice to the contrary. All payments to or on the order of the registered holder of this Note are valid and effectual to discharge the liability of the Issuer and the Registrar, the Transfer Agent and any other Paying Agent hereon to the extent of the sum or sums paid.

 

Interest payable, and punctually paid or duly provided for, on any Interest Payment Date and the principal payable on the Maturity Date will be paid to the person in whose name this Note (or one or more predecessor Notes) is registered at 5:00 p.m., Luxembourg time, on the 15th calendar day (whether or not such day is a business day in Luxembourg) prior to such Interest Payment Date or the Maturity Date, as the case may be (each such day a “Regular Record Date”). Any such interest or principal, as the case may be, not so punctually paid or duly provided for will be paid to the person in whose name this Note (or one or more predecessor Note) is registered at the close of business on a special record date for the payment of such defaulted interest or principal to be fixed by the Registrar, notice whereof shall be given to the registered holder hereof not less than 10 days prior to such special record date, or be paid at any time in any other lawful manner.

 

The Registrar shall not be required to register any transfer or exchange of this Note during the period from any Regular Record Date to the corresponding Interest Payment Date or Maturity Date or from the close of business on the 15th calendar day (whether or not such day is a business day in Luxembourg) preceding the date of early redemption (the “Redemption Record Date”) to the date of early redemption (the “Redemption Date”). Neither the Issuer nor the Registrar shall be required to make any exchange of Notes if as a result thereof, the Issuer may incur adverse tax or other similar consequences under the laws or regulations of any jurisdiction in effect at the time of the exchange.

 

This Note shall not be valid unless authenticated by The Bank of New York Mellon (Luxembourg) S.A., as Registrar or The Bank of New York Mellon acting through its London branch, as Transfer Agent]1.

 

1       Delete as applicable.

  

Page 38

  

 

No rights are conferred on any person by virtue of the Contracts (Rights of Third Parties) Act 1999 to enforce any term of this Note, but this does not affect any right or remedy of any person which exists or is available apart from that Act.

 

IN WITNESS whereof the Issuer has caused this Note to be duly executed on its behalf.

TOYOTA MOTOR CREDIT CORPORATION

	
By:

	
 

	  
	  	
Authorised Signatory

	  

Authenticated by

[The Bank of New York Mellon (Luxembourg) S.A., as Registrar][The Bank of New York Mellon acting through its London branch, as Transfer Agent]2.

	
By:

	
 

	  
	  	
Authorised Signatory

	  

2       Delete as applicable.

  

Page 39

  

Terms and Conditions

 

[Terms and Conditions to be as set out in Appendix A to the Programme Agency Agreement or in such other form as may be agreed between the TMCC, the Registrar and the relevant Purchaser(s)] [Endorsed on or attached to the Terms and Conditions is to be the applicable Final Terms]

 

 

  

Page 40

  

FORM OF TRANSFER OF REGISTERED NOTE

 

FOR VALUE RECEIVED the undersigned hereby sell(s), assign(s) and transfer(s) to

(Please print or type name and address (including postal code) of transferee)

 

[Specified Currency][           ] nominal amount of this Note and all rights hereunder, hereby irrevocably constituting and appointing [                    ] as attorney to transfer such nominal amount of this Note in the register maintained by [                          ] with full power of substitution.

	  	
Signature(s)

	
 

	 

Date:

N.B.:           This form of transfer must be accompanied by such documents, evidence and information as may be required pursuant to the Conditions and must be executed under the hand of the transferor or, if the transferor is a corporation, either under its common seal or under the hand of two of its officers duly authorised in writing and, in such latter case, the document so authorising such officers must be delivered with this form of transfer.

 

 

  

Page 41

  

SCHEDULE 3

FORM OF OPERATING AND ADMINISTRATIVE

PROCEDURES MEMORANDUM

 

All terms with initial capitals used herein without definition shall have the meanings given to them in the Prospectus dated 16 September 2011 as supplemented or replaced from time to time (the “Prospectus”) or, as the case may be, in the Programme Agreement dated 16 September 2011 between Toyota Motor Finance (Netherlands) B.V. (“TMF”), Toyota Credit Canada Inc. (“TCCI”), Toyota Finance Australia Limited (“TFA”) and Toyota Motor Credit Corporation (“TMCC” and together with TMF, TCCI and TFA, the “Issuers”) and the Dealers named therein as amended, supplemented, novated or restated from time to time (the “Programme Agreement”) pursuant to which the Issuers may issue Notes.

 

As used herein in relation to any Notes which are to have a “listing” or to be “listed” (i) on the London Stock Exchange, “listing” and “listed” shall be construed to mean that such Notes have been admitted to the Official List in accordance with the listing rules of the UK Listing Authority and admitted to trading on the London Stock Exchange’s Regulated Market and (ii) on any other Stock Exchange within the European Economic Area, “listing” and “listed” shall be construed to mean that the Notes have been admitted to trading on a market within that jurisdiction which is a regulated market for the purposes of the Markets in Financial Instruments Directive (Directive 2004/39/EC).

 

This Operating and Administrative Procedures Memorandum applies to Notes issued on and after 16 September 2011.  The procedures set out in Annex 1 may be varied by agreement between TMCC, the Registrar, the Transfer Agent and the relevant Purchaser, including to take account of any standardised procedures published by Euroclear and/or Clearstream, Luxembourg (together, the “ICSDs”) and/or the International Capital Market Services Association (“ICMSA”) and/or the International Capital Market Association (“ICMA”).  The Issuer, the Registrar, the relevant Purchaser, and the depository, common depositary, or common service provider and common safekeeper, as the case may be, may agree to vary the timings described herein subject to compliance with such deadlines.

 

 

  

Page 42

  

OPERATING PROCEDURES

 

Purchasers must confirm all trades directly with TMCC and the Registrar and/or Transfer Agent.

 

1.           RESPONSIBILITIES OF THE REGISTRAR AND/OR TRANSFER AGENT

 

The Registrar and/or the Transfer Agent will, in addition to the responsibilities in relation to settlement described in Annex A or Annex B, as the case may be, be responsible for the following:

 

(1)           in the case of Registered Notes which are to be listed on a stock exchange (the relevant Stock Exchange), distributing to the relevant Stock Exchange and any other relevant authority such number of copies of the Final Terms as they may reasonably require; and

 

(2)           where applicable, providing the Ministry of Finance of Japan with all required notifications and reports (including any monthly reports as to amounts, issue dates and other terms of each Tranche of Yen-denominated Registered Notes).

 

2.           RESPONSIBILITIES OF THE LISTING AGENT/ARRANGER/LEAD MANAGER/ DEALER

 

(1)           The Lead Manager/Dealer/other Purchaser shall be responsible for preparing the applicable Final Terms to the Prospectus giving details of the Registered Notes to be issued.

 

(2)           In the case of Registered Notes to be listed on a relevant Stock Exchange, the Listing Agent/Arranger or Lead Manager will be responsible for ensuring compliance with the Prospectus Rules (if applicable) and the Listing Rules and obtaining all necessary approvals for listing the Registered Notes on the relevant Stock Exchange.  TMCC recognises with respect to this Clause 2(2) its continuing obligation so long as any Registered Notes under the Programme are outstanding to apprise the applicable Dealers of any material adverse change in its (consolidated, if applicable) financial position or its business operations.

 

3.           RESPONSIBILITIES OF TMCC

 

TMCC shall execute and deliver the Final Terms to the Registrar/Transfer Agent and the Arranger or the Lead Manager/Dealer/other Purchaser.

 

4.           SETTLEMENT

 

The settlement procedures set out in the Annex shall apply to each issue of Registered Notes settling in Euroclear/Clearstream, Luxembourg unless otherwise agreed between TMCC and the relevant Dealer or Dealers.

 

For issues of Dual Currency Registered Notes, Index Linked Notes or Partly Paid Notes more time may be felt to be required to settle documentation which is not specifically included in the Note Agency Agreement.

 

  

Page 43

  

ANNEX

 

SETTLEMENT PROCEDURES – EUROCLEAR/CLEARSTREAM, LUXEMBOURG

 

The procedures set out below have been discussed and agreed by the ICSDs, representatives of ICMA and representatives of ICMSA.  It is recommended that these procedures are adopted without material amendment to facilitate standardisation in the market and a smooth closing procedure. ****

 

Times set out below are London times and represent the latest time for taking the action concerned. It is recommended that where possible the action concerned is taken in advance of these times.

 

The Registrar may delegate all its duties hereunder to the Transfer Agent, save and except that the Registrar must maintain the Register in Luxembourg.

 

	
Day

	
Latest time

	
Action

	 	 	 
	
No later than

Issue Date minus 3

	
2:00 p.m.

	
TMCC or its designated agent may agree to terms with one or more of the Purchasers for the issue and purchase of Notes.  The relevant Purchaser instructs the Registrar or the Transfer Agent to obtain a common code and ISIN for the Notes from one of the ICSDs.

	 	 	 
	
Issue Date minus 2

	
5:00 p.m.

	
If a Purchaser has reached agreement with TMCC by telephone, the Purchaser confirms the terms of the agreement to TMCC attaching a copy of the applicable Final Terms (substantially in the form set out in Annex B to the Programme Agency Agreement) by electronic communication.  The Purchaser sends a copy of that electronic communication to the Registrar or the Transfer Agent for information.

	 	 	 
	  	  	
TMCC confirms its agreement to the terms on which the issue of Notes is to be made (including the form of the Final Terms) by signing and returning a copy of the Final Terms to the relevant Purchaser and the Registrar or the Transfer Agent.  The details set out in the signed Final Terms shall be conclusive evidence of the agreement (save in the case of manifest error) and shall be binding on the parties accordingly.  TMCC also confirms its instructions to the Registrar or the Transfer Agent to carry out the duties to be carried out by the Registrar or the Transfer Agent under these Settlement Procedures and the Note Agency Agreement including preparing and authenticating a Registered Global Note for the Tranche of Notes which is to be purchased.

	 	 	 
	  	  	
In the case of Floating Rate Notes, the Agent notifies the Registrar, the Transfer Agent, the ICSDs, TMCC, (if applicable) the relevant Stock Exchange and any other relevant authority and the relevant Purchaser of the Rate of Interest for the first Interest Period (if already determined).  Where the Rate of Interest has not yet been determined, this will be notified in accordance with this paragraph as soon as it has been determined.

 

	
****

	
In the case of a syndicated Note issue, certain of the Settlement Procedures set forth below will be revised as appropriate.

 

 

  

Page 44

  

 

	 	 	 
	  	  	
If TMCC has agreed with two or more Purchasers to issue Notes on a syndicated basis, it is to enter into an agreement with such Purchasers in the form or substantially the form set out in Appendix 5 to the Programme Agreement.

	 	 	 
	
No later than

Issue Date minus 1

	
2:00 p.m.

	
In the case of Notes which are to be listed on a Stock Exchange or publicly offered in a European Economic Area Member State, the Registrar or the Transfer Agent, as the case may be, also notifies the Stock Exchange and/or any other relevant authority, as the case may be, by electronic communication or by hand of the details of the Notes to be issued by sending the applicable Final Terms to the Stock Exchange and/or any other relevant authority, as the case may be.

	 	 	 
	
Issue Date minus 1

	
10:00 a.m. (for prior day currencies1)

	
The relevant Purchaser and the Registrar or the Transfer Agent, as the case may be, give settlement instructions to the relevant ICSD(s) to effect the payment of the purchase price, against delivery of the Notes, to the Registrar’s or the Transfer Agent’s account with the relevant ICSD(s) on the Issue Date.

	 	 	 
	  	
12.00 noon (for other currencies)

	
The parties (which for this purpose shall include the Registrar or the Transfer Agent, as the case may be) may agree to arrange for “free delivery” to be made through the relevant ICSD(s) if specified in the applicable Final Terms, in which case these Settlement Procedures will be amended accordingly.

	 	 	 
	
Issue Date minus 1

	
ICSD deadlines for the relevant currency

	
For prior day currencies, the Registrar or the Transfer Agent, as the case may be, instructs the relevant ICSD(s) to debit its account and pay for value on the Issue Date the aggregate purchase moneys received by it to the account of TMCC previously notified to the Registrar or the Transfer Agent, as the case may be, for the purpose.

	 	 	 
	
Issue Date minus 1

	
3.00 p.m.

	
The Registrar or the Transfer Agent, as the case may be, prepares and authenticates a Registered Global Note for each Tranche of Notes which is to be purchased, attaching the applicable Final Terms.

	 	 	 
	  	  	
Each Registered Global Note which is not to be held in the NSS is then delivered by the Registrar or the Transfer Agent, as the case may be, to the Common Depositary.  Each Global Note which is to be held in the NSS is then delivered by the Registrar or the Transfer Agent, as the case may be, to the common safekeeper, together (if applicable) with an effectuation instruction.  In the event that the common service provider and the common safekeeper are not the same entity, the Registrar or the Transfer Agent, as the case may be, should also deliver the applicable Final Terms to the common service provider.

 

	
1

	
The most common prior day currencies are Australian dollars (AUD), Hong Kong dollars (HKD), Japanese yen (JPY) and New Zealand dollars (NZD) but other currencies in similar time zones may also be prior day currencies.  The parties should establish whether or not a particular currency is a prior day currency as soon as possible.

 

 

  

Page 45

  

 

	 	 	 
	  	  	
For Notes held in the NSS, the Registrar or the Transfer Agent, as the case may be, then instructs the ICSDs, through the common service provider, to make the necessary entries in their records to record the outstanding amount of the Registered Global Note.

	 	 	 
	
Issue Date minus 1

	
5.00 p.m.

	
The conditions of issue in the Programme Agreement are satisfied and/or waived.

	 	 	 
	  	  	
In the case of each Registered Global Note which is held in the NSS, the common safekeeper confirms deposit and effectuation (if applicable)2 of the Registered Global Note to the Registrar or the Transfer Agent, as the case may be, the common service provider and the ICSDs.

	 	 	 
	
Issue Date minus 1

	
6.00 p.m.

	
In the case of each Registered Global Note which is not held in the NSS, the Common Depositary confirms deposit of the Registered Global Note to the Registrar or the Transfer Agent, as the case may be, and the ICSDs.

	 	 	 
	  	  	
In the case of each Registered Global Note which is held in the NSS, the common service provider relays the Registrar’s or the Transfer Agent’s instruction to record the issue outstanding amount of the Registered Global Note to the ICSDs.

	 	 	 
	
Issue Date

	
According to ICSD

settlement procedures

	
The ICSDs debit and credit accounts in accordance with instructions received from the Registrar or the Transfer Agent, as the case may be, and the relevant Purchaser.

	 	 	 
	
Issue Date

	
ICSD deadlines for the relevant currency

	
For non-prior day currencies, the Registrar or the Transfer Agent, as the case may be, instructs the relevant ICSD(s) to debit its account and pay for value on the Issue Date the aggregate purchase moneys received by it to the account of TMCC previously notified to the Registrar for the purpose.

	 	 	 
	
Issue Date

	
5.00 p.m.

	
The Registrar or the Transfer Agent, as the case may be, forwards a copy of the signed Final Terms to each ICSD.

	 	 	 
	
On or 

subsequent to 

the Issue Date

	  	
The Registrar or the Transfer Agent, as the case may be, notifies TMCC immediately in the event that a Purchaser does not pay the purchase price due from it in respect of a Note.

	 	 	 
	  	  	
The Registrar or the Transfer Agent, as the case may be, notifies TMCC of the issue of Notes giving details of the Registered Global Note(s) and the nominal amount represented thereby.

	 	 	 
	  	  	
The Registrar or the Transfer Agent, as the case may be, confirms the issue of Notes to the relevant Stock Exchange and any other relevant authority.

	 	 	 
	  	  	
The relevant Purchaser promptly notifies the Registrar or the Transfer Agent, as the case may be, that the distribution of 

 

	
2

	
This assumes that an effectuation authorisation has been delivered by the Issuer to the common safekeeper (i.e. Euroclear or Clearstream, Luxembourg) at the update of the programme.  If this is not the case, such an authorisation should be delivered at least 2 business days prior to the closing of the first issue of Eurosystem-eligible New Global Notes under the Programme.

  

Page 46

  

 

	 	 	the Notes purchased by it has been completed. 

 

Explanatory Notes to Annex B

 

(a)           Each Day is a day on which banks and foreign exchange markets are open for general business in London (including dealings in foreign exchange and foreign currency deposits), counted in reverse order from the proposed Issue Date.

 

(b)           The Issue Date must be a Business Day.  For the purposes of this Annex B, Business Day means a day which is:

 

(1)           a day on which commercial banks and foreign exchange markets settle payments and are open for general business (including dealings in foreign exchange and foreign currency deposits) in London and any other place specified in the applicable Final Terms as an Applicable Business Centre;

 

(2)           either (i) in relation to Notes denominated in a Specified Currency other than euro, a day on which commercial banks and foreign exchange markets settle payments and are open for general business (including dealings in foreign exchange and foreign currency deposits) in the principal financial centre of the country of the relevant Specified Currency (if other than London and any other Applicable Business Centre specified in the applicable Final Terms); or (ii) in relation to Notes denominated in euro, a day on which the TARGET2 system is open.  Unless provided otherwise in the applicable Final Terms, the principal financial centre of any country shall be as provided in the ISDA Definitions (except in the case of Australia and New Zealand, where the principal financial centre will be Sydney or Auckland, respectively); and

 

(3)           a day on which the ICSDs and any other relevant clearing system is open for general business.

 

(c)           Times given can be modified upon the mutual agreement of the Purchaser, the Registrar and TMCC.

 

(d)           If at any time the Registrar is notified by TMCC or the relevant Stock Exchange that the listing of a Series of Notes has been refused or otherwise will not take place, the Registrar shall immediately notify TMCC, the Dealer and all the relevant Purchaser(s) (if not the Dealer).

 

(e)           If any final terms or information to be included in the applicable Final Terms constitute “significant new factors” and consequently trigger the need for a supplement to the Prospectus under Article 16 of the Prospectus Directive (Directive 2003/71/EC and amendments thereto, including the 2010 PD Amending Directive, to the extent that such amendments have been implemented in a Member State of the European Economic Area) the timings outlined above will change as the Final Terms will need to be approved by the relevant authority as a supplement, which can take up to seven working days.

 

(f)           Where a clearing system other than Euroclear or Clearstream, Luxembourg is used for an issue, references to the ICSDs shall be interpreted accordingly.

 

  

Page 47

  

SCHEDULE 4

ADDITIONAL DUTIES OF THE REGISTRAR AND THE TRANSFER AGENT

 

In relation to each Series of Registered Notes that are held in the NSS, the Registrar and the Transfer Agent shall comply with the following provisions:

 

1.           Each of the Registrar and the Transfer Agent will inform each of Euroclear and Clearstream, Luxembourg (the “ICSDs”), through the common service provider appointed by the ICSDs to service the Registered Notes (the “CSP”), of the initial issue outstanding amount (“IOA”) for each Tranche on or prior to the relevant Issue Date.

 

2.           If any event occurs that requires a mark up or mark down of the records which an ICSD holds for its customers to reflect such customers’ interest in the Registered Notes, each of the Registrar and the Transfer Agent will (to the extent known to it) promptly provide details of the amount of such mark up or mark down, together with a description of the event that requires it, to the ICSDs (through the CSP) to ensure that the records of the ICSDs reflecting the IOA of the Registered Notes remains at all times accurate.

 

3.           Each of the Registrar and the Transfer Agent will at least monthly perform a reconciliation process with the ICSDs (through the CSP) with respect to the IOA for the Registered Notes and will promptly inform the ICSDs (through the CSP) of any discrepancies.

 

4.           Each of the Registrar and the Transfer Agent will promptly assist the ICSDs (through the CSP) in resolving any discrepancy identified in the records reflecting the IOA of the Registered Notes.

 

5.           Each of the Registrar and the Transfer Agent will promptly provide to the ICSDs (through the CSP) details of all amounts paid by it under the Registered Notes (or, where the Registered Notes provide for delivery of assets other than cash, of the assets so delivered).

 

6.           Each of the Registrar and the Transfer Agent will (to the extent known to it) promptly provide to the ICSDs (through the CSP) notice of any changes to the Registered Notes that will affect the amount of, or date for, any payment due under the Registered Notes.

 

7.           Each of the Registrar and the Transfer Agent will (to the extent known to it) promptly provide to the ICSDs (through the CSP) copies of all information that is given to the holders of the Registered Notes.

 

8.           Each of the Registrar and the Transfer Agent will promptly pass on to TMCC all communications it receives from the ICSDs directly or through the CSP relating to the Registered Notes.

 

9.           Each of the Registrar and the Transfer Agent will (to the extent known to it) promptly notify the ICSDs (through the CSP) of any failure by the Issuer to make any payment or delivery due under the Registered Notes when due.

 

 

 

Page 48exv4w1

Exhibit 4.1

Execution Version

EXELIS INC.,

ITT CORPORATION,

as Guarantor

and

UNION BANK, N.A., as Trustee

Indenture

Dated as of September 20, 2011

Providing for Issuance of Debt Securities

 

 

TABLE OF CONTENTS

	 	 	 	 	 
	 	 	Page	 
	ARTICLE 1
	 	 	 	 
	Definitions and Other Provisions of General Application
	 	 	 	 
	 
	 	 	 	 
	Section 1.01. Definitions
	 	 	1	 
	Section 1.02. Officers’ Certificates and Opinions
	 	 	10	 
	Section 1.03. Form of Documents Delivered to Trustee
	 	 	11	 
	Section 1.04. Acts of Securityholders
	 	 	11	 
	Section 1.05. Notices, etc., to Trustee and Company
	 	 	13	 
	Section 1.06. Notice to Securityholders; Waiver
	 	 	13	 
	Section 1.07. Conflict with Trust Indenture Act
	 	 	14	 
	Section 1.08. Effect of Headings and Table of Contents
	 	 	14	 
	Section 1.09. Successors and Assigns
	 	 	14	 
	Section 1.10. Separability Clause
	 	 	14	 
	Section 1.11. Benefits of Indenture
	 	 	14	 
	Section 1.12. Governing Law
	 	 	14	 
	Section 1.13. Counterparts
	 	 	14	 
	Section 1.14. Judgment Currency
	 	 	14	 
	Section 1.15. Legal Holidays
	 	 	15	 
	 
	 	 	 	 
	ARTICLE 2
	 	 	 	 
	Security Forms
	 	 	 	 
	 
	 	 	 	 
	Section 2.01. Forms Generally
	 	 	15	 
	Section 2.02. Forms of Securities
	 	 	16	 
	Section 2.03. Securities in Global Form
	 	 	16	 
	Section 2.04. Form of Trustee’s Certificate of Authentication
	 	 	16	 
	 
	 	 	 	 
	ARTICLE 3
	 	 	 	 
	The Securities
	 	 	 	 
	 
	 	 	 	 
	Section 3.01. General Title; General Limitations; Issuable in Series; Terms
of Particular Series
	 	 	17	 
	Section 3.02. Denominations and Currency
	 	 	21	 
	Section 3.03. Execution, Authentication and Delivery, and Dating
	 	 	21	 
	Section 3.04. Temporary Securities
	 	 	23	 
	Section 3.05. Registration, Transfer and Exchange
	 	 	24	 
	Section 3.06. Mutilated, Destroyed, Lost and Stolen Securities
	 	 	27	 
	Section 3.07. Payment of Interest; Interest Rights Preserved
	 	 	28	 
	Section 3.08. Persons Deemed Owners
	 	 	29	 
	Section 3.09. Cancellation
	 	 	29	 
	Section 3.10. Computation of Interest
	 	 	30	 
	Section 3.11. CUSIP Numbers
	 	 	30	 

 

 

	 	 	 	 	 
	 	 	Page	 
	ARTICLE 4
	 	 	 	 
	Satisfaction and Discharge
	 	 	 	 
	 
	 	 	 	 
	Section 4.01. Satisfaction and Discharge of Indenture
	 	 	30	 
	Section 4.02. Discharge and Defeasance
	 	 	32	 
	Section 4.03. Covenant Defeasance
	 	 	32	 
	Section 4.04. Conditions to Defeasance or Covenant Defeasance
	 	 	33	 
	Section 4.05. Application of Trust Money; Excess Funds
	 	 	35	 
	Section 4.06. Paying Agent to Repay Moneys Held
	 	 	35	 
	Section 4.07. Return of Unclaimed Amounts
	 	 	36	 
	Section 4.08. Reinstatement
	 	 	36	 
	 
	 	 	 	 
	ARTICLE 5
	 	 	 	 
	Remedies
	 	 	 	 
	 
	 	 	 	 
	Section 5.01. Events of Default
	 	 	36	 
	Section 5.02. Acceleration of Maturity; Rescission, and Annulment
	 	 	38	 
	Section 5.03. Collection of Indebtedness and Suits for Enforcement by
Trustee
	 	 	39	 
	Section 5.04. Trustee May File Proofs of Claim
	 	 	40	 
	Section 5.05. Trustee May Enforce Claims Without Possession of Securities
	 	 	41	 
	Section 5.06. Application of Money Collected
	 	 	41	 
	Section 5.07. Limitation on Suits
	 	 	42	 
	Section 5.08. Unconditional Right of Securityholders to Receive Principal,
Premium, and Interest
	 	 	42	 
	Section 5.09. Restoration of Rights and Remedies
	 	 	42	 
	Section 5.10. Rights and Remedies Cumulative
	 	 	43	 
	Section 5.11. Delay or Omission Not Waiver
	 	 	43	 
	Section 5.12. Control by Securityholders
	 	 	43	 
	Section 5.13. Waiver of Past Defaults
	 	 	43	 
	Section 5.14. Undertaking for Costs
	 	 	44	 
	Section 5.15. Waiver of Stay or Extension Laws
	 	 	44	 
	 
	 	 	 	 
	ARTICLE 6
	 	 	 	 
	The Trustee
	 	 	 	 
	 
	 	 	 	 
	Section 6.01. Certain Duties and Responsibilities of Trustee
	 	 	44	 
	Section 6.02. Notice of Defaults
	 	 	46	 
	Section 6.03. Certain Rights of Trustee
	 	 	46	 
	Section 6.04. Not Responsible for Recitals or Issuance of Securities
	 	 	47	 
	Section 6.05. May Hold Securities
	 	 	48	 
	Section 6.06. Money Held in Trust
	 	 	48	 
	Section 6.07. Compensation and Reimbursement
	 	 	48	 
	Section 6.08. Disqualification; Conflicting Interests
	 	 	49	 
	Section 6.09. Corporate Trustee Required; Eligibility
	 	 	49	 
	Section 6.10. Resignation and Removal; Appointment of Successor
	 	 	49	 
	Section 6.11. Acceptance of Appointment by Successor
	 	 	51	 

 

 

	 	 	 	 	 
	 	 	Page	 
	Section 6.12. Merger, Conversion, Consolidation or Succession to Business
	 	 	52	 
	Section 6.13. Preferential Collection of Claims Against Company
	 	 	52	 
	Section 6.14. Appointment of Authenticating Agent
	 	 	52	 
	 
	 	 	 	 
	ARTICLE 7
	 	 	 	 
	Securityholders’ Lists and Reports by Trustee and Company
	 	 	 	 
	 
	 	 	 	 
	Section 7.01. Company to Furnish Trustee Names and Addresses of
Securityholders
	 	 	54	 
	Section 7.02. Preservation of Information; Communications to
Securityholders
	 	 	54	 
	Section 7.03. Reports by Trustee
	 	 	55	 
	Section 7.04. Reports by Company
	 	 	56	 
	 
	 	 	 	 
	ARTICLE 8
	 	 	 	 
	Consolidation, Merger, Conveyance or Transfer
	 	 	 	 
	 
	 	 	 	 
	Section 8.01. Company May Consolidate, etc., Only on Certain Terms
	 	 	57	 
	Section 8.02. Successor Corporation Substituted
	 	 	57	 
	 
	 	 	 	 
	ARTICLE 9
	 	 	 	 
	Supplemental Indentures
	 	 	 	 
	 
	 	 	 	 
	Section 9.01. Supplemental Indentures Without Consent of Securityholders
	 	 	58	 
	Section 9.02. Supplemental Indentures With Consent of Securityholders
	 	 	59	 
	Section 9.03. Execution of Supplemental Indentures
	 	 	61	 
	Section 9.04. Effect of Supplemental Indentures
	 	 	61	 
	Section 9.05. Conformity With the Trust Indenture Act
	 	 	61	 
	Section 9.06. Reference in Securities to Supplemental Indentures
	 	 	61	 
	 
	 	 	 	 
	ARTICLE 10
	 	 	 	 
	Covenants
	 	 	 	 
	 
	 	 	 	 
	Section 10.01. Payment of Principal, Premium and Interest
	 	 	62	 
	Section 10.02. Maintenance of Office or Agency
	 	 	62	 
	Section 10.03. Money or Security Payments to Be Held in Trust
	 	 	62	 
	Section 10.04. Certificate to Trustee
	 	 	63	 
	Section 10.05. Corporate Existence
	 	 	63	 
	Section 10.06. Waiver of Certain Covenants
	 	 	63	 
	Section 10.07. Limitation on Liens
	 	 	64	 
	Section 10.08. Limitation on Sale and Lease-Back Transactions
	 	 	65	 
	 
	 	 	 	 
	ARTICLE 11
	 	 	 	 
	Redemption of Securities
	 	 	 	 
	 
	 	 	 	 
	Section 11.01. Applicability of Article
	 	 	66	 
	Section 11.02. Election to Redeem; Notice to Trustee
	 	 	66	 
	Section 11.03. Selection by Trustee of Securities to be Redeemed
	 	 	66	 

 

 

	 	 	 	 	 
	 	 	Page	 
	Section 11.04. Notice of Redemption
	 	 	67	 
	Section 11.05. Deposit of Redemption Price
	 	 	68	 
	Section 11.06. Securities Payable on Redemption Date
	 	 	68	 
	Section 11.07. Securities Redeemed in Part
	 	 	68	 
	Section 11.08. Provisions with Respect to any Sinking Funds
	 	 	69	 
	 
	 	 	 	 
	ARTICLE 12
	 	 	 	 
	Repayment at Option of Holders
	 	 	 	 
	 
	 	 	 	 
	Section 12.01. Applicability of Article
	 	 	70	 
	Section 12.02. Repayment of Securities
	 	 	70	 
	Section 12.03. Exercise of Option
	 	 	71	 
	Section 12.04. When Securities Presented for Repayment Become Due and
Payable
	 	 	71	 
	Section 12.05. Securities Repaid in Part
	 	 	71	 
	 
	 	 	 	 
	ARTICLE 13
	 	 	 	 
	Subordination of Subordinated Securities
	 	 	 	 
	 
	 	 	 	 
	Section 13.01. Agreement to Subordinate
	 	 	72	 
	Section 13.02. Payment on Dissolution, Liquidation or Reorganization;
Default on Senior Indebtedness
	 	 	72	 
	Section 13.03. Payment Prior to Dissolution or Default
	 	 	75	 
	Section 13.04. Securityholders Authorize Trustee to Effectuate
Subordination of Securities
	 	 	75	 
	Section 13.05. Right of Trustee to Hold Senior Indebtedness
	 	 	75	 
	Section 13.06. Not to Prevent Events of Default
	 	 	75	 
	Section 13.07. No Fiduciary Duty of Trustee to Holders of Senior
Indebtedness
	 	 	76	 
	 
	 	 	 	 
	ARTICLE 14
	 	 	 	 
	Guarantee of Securities
	 	 	 	 
	 
	 	 	 	 
	Section 14.01. Guarantee
	 	 	76	 
	Section 14.02. Waiver
	 	 	76	 
	Section 14.03. Guarantee of Payment
	 	 	77	 
	Section 14.04. No Discharge or Diminishment of Guarantee
	 	 	77	 
	Section 14.05. Defenses of Company Waived
	 	 	77	 
	Section 14.06. Continued Effectiveness
	 	 	78	 
	Section 14.07. Subrogation
	 	 	78	 
	Section 14.08. Subordination
	 	 	78	 
	Section 14.09. Release of Guarantor and Termination of Guarantee
	 	 	79	 
	Section 14.10. Limitation of Guarantors’ Liability
	 	 	79	 
	Section 14.11. No Obligation to Take Action Against the Company
	 	 	80	 
	Section 14.12. Execution and Delivery
	 	 	80	 

 

 

     THIS INDENTURE, between Exelis Inc., an Indiana corporation
(hereinafter called the “Company”) having its principal office at 1650 Tysons
Boulevard, Suite 1700, McLean, Virginia 22102, ITT Corporation, an Indiana
corporation, as guarantor (hereinafter called “ITT” or the “Guarantor”), and
Union Bank, N.A., a national banking association, as trustee (hereinafter called
the “Trustee”), is made and entered into as of this 20th day of
September, 2011.

Recitals

     The Company has duly authorized the execution and delivery of this Indenture
(as hereinafter defined) to provide for the issuance of its unsecured debentures,
notes, bonds, and other evidences of indebtedness, to be issued in one or more
fully registered series.

     The Guarantor has duly authorized its guarantee of the Securities (as
hereinafter defined) (the “Guarantee”) and to provide therefor the Guarantor has
duly authorized the execution and delivery of this Indenture.

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

Agreements of the Parties

     To set forth or to provide for the establishment of the terms and conditions
upon which the Securities are and are to be authenticated, issued, and delivered,
and in consideration of the premises thereof, and the purchase of Securities by
the Holders (as hereinafter defined) thereof, it is mutually covenanted and agreed
as follows, for the equal and proportionate benefit of all Holders from time to
time of the Securities or of any series thereof, as the case may be:

ARTICLE 1

Definitions and Other Provisions of General Application

     Section 1.01. Definitions. For all purposes of this Indenture and of any
indenture supplemental hereto, except as otherwise expressly provided or unless
the context otherwise requires:

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

     (b) all other terms used herein which are defined in the Trust Indenture Act
(as hereinafter defined), either directly or by reference therein, have the
meanings assigned to them therein;

     (c) all accounting terms not otherwise defined herein have the meanings
assigned to them in accordance with generally accepted accounting principles

1

 

and, except as otherwise herein expressly provided, the term “generally accepted
accounting principles” with respect to any computation required or permitted hereunder
shall mean such accounting principles as are generally accepted in the United States of
America at the date of such computation; and

     (d) all references in this instrument to designated “Articles”, “Sections” and
other subdivisions are to the designated Articles, Sections and other subdivisions
of this Indenture as originally executed. The words “herein”, “hereof”, and
“hereunder” and other words of similar import refer to this Indenture as a whole and
not to any particular Article, Section, or other subdivision.

     “Act”, when used with respect to any Securityholder (as hereinafter
defined), has the meaning specified in Section 1.04.

     “Additional Interest” means all interest payable as a consequence of the
failure to effectuate in a timely manner the exchange offer and/or shelf
registration procedures set forth in the Registration Rights Agreement.

     “Affiliate” of any specified Person (as hereinafter defined) means any other
Person directly or indirectly controlling or controlled by or under direct or
indirect common control with such specified Person. For the purposes of this
definition, “control” when used with respect to any specified Person means the
power to direct the management and policies of such Person, directly or indirectly,
whether through the ownership of voting securities, by contract, or otherwise; and
the terms “controlling” and “controlled” have meanings correlative to the
foregoing.

     “applicants” has the meaning specified in Section 7.02.

     “Attributable Debt” with regard to a sale and lease-back transaction with
respect to any Principal Property means, at the time of determination, the present
value of the total net amount of rent required to be paid under such lease during
the remaining term thereof (including any period for which such lease has been
extended), discounted at the rate of interest set forth or implicit in the terms of
such lease (or, if not practicable to determine such rate, the weighted average
interest rate per annum borne by all Outstanding Securities) compounded
semi-annually. In the case of any lease which is terminable by the lessee upon the
payment of a penalty, such net amount shall be the lesser of (x) the net amount
determined assuming termination upon the first date such lease may be terminated
(in which case the net amount shall also include the amount of the penalty, but
shall not include any rent that would be required to be paid under such lease
subsequent to the first date upon which it may be so terminated) or (y) the net
amount determined assuming no such termination.

     “Authenticating Agent” means any Person authorized by the Trustee to
authenticate Securities of one or more series under Section 6.14.

2

 

     “Authentication Order” has the meaning specified in Section 3.03.

     “Board of Directors” means (i) the board of directors of the Company, (ii)
any duly authorized committee of that board, or (iii) any officer, director, or
authorized representative of the Company, in each case duly authorized by such
Board to act hereunder.

     “Board Resolution” means a copy of a resolution certified by the Corporate
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 (except, with respect to any particular series of
Securities, as may be otherwise provided in the form of such Securities) any day
other than a Saturday or Sunday that is neither a legal holiday nor a day on which
banking institutions are authorized or required by law, regulation, or executive
order to be closed.

     “Chairman” means the Company’s Chairman of the Board of Directors.

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

     “Company” means Exelis Inc., unless and until a successor corporation shall
have become such pursuant to the applicable provisions of this Indenture, and
thereafter “Company” shall mean such successor corporation.

     “Company Common Stock” means all of the outstanding shares of common
stock, par value $.01 per share, of the Company.

     “Company Request” and “Company Order” mean, respectively, a written request or
order signed in the name of the Company by its Chairman, Vice Chairman (as
hereinafter defined), Chief Executive Officer, Chief Financial Officer, any
Executive Vice President (as hereinafter defined) or Vice President, or by any
other officer or officers of the Company pursuant to an applicable Board
Resolution, and delivered to the Trustee.

     “Consolidated Net Tangible Assets” means the total amount of assets (less
applicable depreciation, amortization, and other valuation reserves) of the
Company and its Restricted Subsidiaries, after deducting therefrom (i) all
current liabilities of the Company and its Restricted Subsidiaries (excluding any
such liabilities that are intercompany items) and (ii) all goodwill, trade names,
trademarks, patents, unamortized debt discount and expenses and other like
intangibles, all as set forth on the latest consolidated balance sheet of the

3

 

Company and its Restricted Subsidiaries prepared in accordance with United States
generally accepted accounting principles.

     “Corporate Trust Office” means the office of the Trustee at which at any
particular time its corporate trust business shall be principally administered,
which office at the date hereof is located at 1251 Avenue of the Americas,
19th Floor, New York, New York 10020.

     “corporation” means a corporation, association, company, joint-stock
company, limited liability company or business trust.

     “Covenant Defeasance” has the meaning specified in Section 4.03.

     “Debt” means any indebtedness for borrowed money.

     “Defaulted Interest” has the meaning specified in Section 3.07.

     “Defeasance” has the meaning specified in Section 4.02.

     “Depositary” means with respect to the Securities of any series issuable or
issued in whole or in part in global form, the Person designated as Depositary by
the Company pursuant to Section 3.01, unless and until a successor Depositary
shall have become such pursuant to the applicable provisions of this Indenture,
and thereafter “Depositary” shall mean or include each Person who is then a
Depositary hereunder, and if at any time there is more than one such Person,
“Depositary” as used with respect to the Securities of any such series shall mean
the “Depositary” with respect to the Securities of that series.

     “Distribution” means the distribution on the Distribution Date to holders of
record of shares of ITT Common Stock as of the Distribution Record Date of the
Company Common Stock.

     “Distribution Date” means the date on which ITT distributes all of the
issued and outstanding shares of Company Common Stock to the holders of ITT
Common Stock.

     “Distribution Record Date” means such date as may be determined by the
board of directors of ITT as the record date for the Distribution.

     “Entity” means any corporation, limited liability company, partnership,
joint venture, association, joint-stock company, trust or unincorporated
organization.

     “Equivalent Government Securities” means, in relation to Securities
denominated in a currency other than U.S. dollars, securities of the government
that issued the currency in which such Securities are denominated or securities of
government agencies backed by the full faith and credit of such government.

4

 

     “Event of Default” has the meaning specified in Article 5.

     “Exchange Act” has the meaning specified in Section 3.03.

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

     “Guarantee” has the meaning specified in the second recital of this
Indenture and more particularly means the Guarantee made by the Guarantor as set
forth in Article 14 hereof.

     “Guarantor” means ITT Corporation, an Indiana corporation.

     “Holder”, “Securityholder” and “Holder of Securities” means a Person in
whose name a Security is registered in the Security Register (as hereinafter
defined).

     “Indenture” means this instrument as originally executed or as it may from
time to time be supplemented or amended by one or more indentures supplemental
hereto entered into pursuant to the applicable provisions hereof and shall include
the terms of any particular series of Securities established as contemplated by
Section 3.01.

     “Interest Payment Date”, when used with respect to any series of Securities,
means any date on which an installment of interest on those Securities is
scheduled to be paid.

     “Investment Company Act” has the meaning specified in Section 4.04.

     “ITT Common Stock” means the issued and outstanding shares of common
stock of ITT, par value $1 per share.

     “Judgment Currency” has the meaning specified in Section 1.14.

     “Lien” has the meaning specified in Section 10.07.

     “Maturity” means, when used with respect to any Security, the date on which
the principal amount outstanding under such Security or an installment of
principal amount outstanding under such Security becomes due and payable, as
therein or herein provided, whether on the Scheduled Maturity Date (as
hereinafter defined), by declaration of acceleration, call for redemption, or
otherwise.

     “Obligations” has the meaning specified in Section 14.01.

5

 

     “Offering Memorandum” means the offering memorandum, dated September
15, 2011, relating to the private offering of the Securities.

     “Officers’ Certificate” means a certificate signed by any two of the
Chairman, Vice Chairman, Chief Executive Officer, Chief Financial Officer, any
Executive Vice President or Vice President, the Treasurer, and any Assistant
Treasurer of the Company, or by any other officer or officers of the Company
pursuant to an applicable Board Resolution, and delivered to the Trustee.

     “Opinion of Counsel” means a written opinion of counsel to the Company,
which counsel may be an employee of the Company or other counsel who shall be
reasonably acceptable to the Trustee.

     “Original Issue Discount Security” means any Security which is initially sold
at a discount from the principal amount thereof and the terms of which provide
that upon redemption or acceleration of the Maturity thereof, an amount less than
the principal amount thereof would become due and payable.

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

     (i) such Securities theretofore canceled by the Trustee or delivered by the
Company to the Trustee for cancellation;

     (ii) such Securities, or portions thereof, for whose payment or redemption
money in the necessary amount has been theretofore deposited in trust with the
Trustee or with any Paying Agent (as hereinafter defined) other than the Company,
or, if the Company shall act as its own Paying Agent, has been set aside and
segregated in trust by the Company; provided, in any case, that if such
Securities are to be redeemed prior to their Scheduled Maturity Date, notice of
such redemption has been duly given pursuant to this Indenture or provision
therefor satisfactory to the Trustee has been made; and

     (iii) such Securities in exchange for or in lieu of which other Securities
have been authenticated and delivered pursuant to this Indenture, or which shall
have been paid, in each case, pursuant to the terms of Section 3.06 (except with
respect to any such Security as to which proof satisfactory to the Trustee is
presented that such Security is held by a Person in whose hands such Security is a
legal, valid, and binding obligation of the Company).

In determining whether the Holders of the requisite principal amount of such Securities
Outstanding have given any request, demand, authorization, direction, notice, consent or
waiver hereunder, the principal amount of any Original Issue Discount Security that shall
be deemed to be Outstanding shall be the amount of the principal thereof that would be
due and payable as of the date of such

6

 

determination upon a declaration of acceleration of the Maturity thereof. In determining
whether the Holders of the requisite principal amount of such Securities Outstanding have
given a direction concerning the time, method, and place of conducting any proceeding for
any remedy available to the Trustee, or concerning the exercise of any trust or power
conferred upon the Trustee under this Indenture, or concerning a consent on behalf of the
Holders of any series of Securities to the waiver of any past default and its
consequences, Securities owned by the Company, any other obligor upon the Securities, or
any Affiliate of the Company or such other obligor shall be disregarded and deemed not to
be Outstanding. In determining whether the Trustee shall be protected in relying upon any
such request, demand, authorization, direction, notice, consent, or waiver, only
Securities which a Responsible Officer assigned to the corporate trust department of the
Trustee knows to be owned by the Company or any other obligor upon the Securities or any
Affiliate of the Company or such other obligor shall be so disregarded. Securities so
owned which have been pledged in good faith may be regarded as Outstanding if the pledgee
establishes to the satisfaction of the Trustee the pledgee’s right to act as owner with
respect to such Securities and that the pledgee is not the Company or any other obligor
upon the Securities or any Affiliate of the Company or such other obligor.

     “Paying Agent” means, with respect to any Securities, any Person appointed
by the Company to distribute amounts payable by the Company on such Securities.
If at any time there shall be more than one such Person, “Paying Agent” as used
with respect to the Securities of any particular series shall mean the Paying
Agent with respect to Securities of that series. As of the date of this
Indenture, the Company has appointed Union Bank, N.A. as Paying Agent with
respect to all Securities issuable hereunder.

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

     “Place of Payment” means with respect to any series of Securities issued
hereunder the city or political subdivision so designated with respect to the
series of Securities in question in accordance with the provisions of Section
3.01.

     “Predecessor Securities” of any particular Security means every previous
Security evidencing all or a portion of the same debt as that evidenced by such
particular Security; and, for the purposes of this definition, any Security
authenticated and delivered under Section 3.06 in lieu of a lost, destroyed,
mutilated, or stolen Security shall be deemed to evidence the same debt as the
lost, destroyed, mutilated, or stolen Security.

     “Principal Property” means any single manufacturing or processing plant,
office building or warehouse owned or leased by the Company or a Restricted
Subsidiary which has a gross book value in excess of 2% of Consolidated Net
Tangible Assets other than a plant, warehouse, office building,

7

 

or portion thereof which, in the opinion of the Company’s Board of Directors, is not of
material importance to the business conducted by the Company and its Restricted
Subsidiaries as an entirety.

     “Record Date” means any date as of which the Holder of a Security will be
determined for any purpose described herein, such determination to be made as of
the close of business on such date by reference to the Security Register.

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

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

     “Registration Rights Agreement” means (i) that certain registration rights
agreement dated as of September 20, 2011 by and among the Company, the Guarantor
and the initial purchasers party thereto and (ii) with respect to any additional
Securities, one or more substantially similar registration rights agreements among
the Company and the other parties thereto, as such agreements may be amended from
time to time.

     “Repayment Date”, when used with respect to any Security to be repaid, means
the date fixed for such repayment pursuant to such Security.

     “Repayment Price”, when used with respect to any Security to be repaid, means
the price at which it is to be repaid pursuant to such Security.

     “Required Currency” has the meaning specified in Section 1.14.

     “Responsible Officer”, when used with respect to the Trustee, shall mean an
officer of the Trustee in the Corporate Trust Office, having direct responsibility
for the administration of this Indenture, and also, with respect to a particular
corporate trust matter, any other officer to whom such matter is referred because
of such officer’s knowledge of and familiarity with the particular subject.

     “Restricted Subsidiary” means at any time any Subsidiary of the Company
except a Subsidiary which is at the time an Unrestricted Subsidiary.

     “Scheduled Maturity Date”, when used with respect to any Security, means
the date specified in such Security as the date on which all outstanding
principal and interest will be due and payable.

     “Security” or “Securities” means any note or notes, bond or bonds, debenture
or debentures, or any other evidences of indebtedness, as the case may

8

 

be, of any series authenticated and delivered from time to time under this
Indenture.

     “Security Register” has the meaning specified in Section 3.05.

     “Security Registrar” means the Person who maintains the Security Register,
which Person shall be the Trustee unless and until a successor Security Registrar
is appointed by the Company.

     “Senior Indebtedness” means all obligations or indebtedness of, or guaranteed
or assumed by, the Company, whether or not represented by bonds, debentures notes
or similar instruments, for borrowed money, and any amendments, renewals,
extensions, modifications and refundings of any such obligations or indebtedness,
unless in the instrument creating or evidencing any such indebtedness or
obligations or pursuant to which the same is outstanding it is specifically
stated, at or prior to the time the Company becomes liable in respect thereof,
that any such obligation or indebtedness or such amendment, renewal, extension,
modification and refunding thereof is not Senior Indebtedness.

     “Special Record Date” for the payment of any Defaulted Interest means a date
fixed by the Trustee pursuant to Section 3.07.

     “Specified Currency” has the meaning specified in Section 3.01.

     “Spin-Off” means (i) the series of transactions pursuant to which the
Guarantor will allocate, transfer and assign, or cause to be allocated,
transferred and assigned the assets and liabilities of the Guarantor’s Defense and
Information Solutions segment to the Company and its subsidiaries and (ii) the
Distribution, each as described in the Offering Memorandum.

     “Subordinated Security” means any security issued under this Indenture which
is designated as a Subordinated Security.

     “Subsidiary” of any specified corporation means any entity at least a
majority of whose outstanding Voting Stock shall at the time be owned, directly or
indirectly, by the specified corporation or by one or more of its Subsidiaries, or
both.

     “Trust Indenture Act” or “TIA” means the Trust Indenture Act of 1939, as
amended, as in force as of the date hereof, except as provided in Section 9.05.

     “Trustee” means the party named as such above until a successor becomes such
pursuant to this Indenture and thereafter means or includes each party who is then
a trustee hereunder, and if at any time there is more than one such party,
“Trustee” as used with respect to the Securities of any series means the Trustee
with respect to Securities of that series. If Trustees with respect to different
series of Securities are trustees under this Indenture, nothing herein shall

9

 

constitute the Trustees co-trustees of the same trust, and each Trustee shall be the
trustee of a trust separate and apart from any trust administered by any other Trustee
with respect to a different series of Securities.

     “Unrestricted Subsidiary” means any Subsidiary of the Company (not at the time
designated a Restricted Subsidiary) (i) the major part of whose business consists
of finance, banking, credit, leasing, insurance, financial services, or other
similar operations, or any combination thereof, (ii) substantially all the assets
of which consist of the capital stock of one or more such Subsidiaries engaged in
the operations referred to in the preceding clause (i), or (iii) designated as such
by the Company’s Board of Directors and which, in the opinion of the Company’s
Board of Directors, is not of material importance to the business conducted by the
Company and its Restricted Subsidiaries as an entity.

     “U.S. Government Obligations” means (i) securities that are direct
obligations of the United States of America, the payment of which is
unconditionally guaranteed by the full faith and credit of the United States of
America and (ii) securities that are obligations of a Person controlled or
supervised by and acting as an agency or instrumentality of the United States of
America, the payment of which is unconditionally guaranteed by the full faith and
credit of the United States of America, and also includes depository receipts
issued by a bank or trust company as custodian with respect to any of the
securities described in the preceding clauses (i) and (ii), and any payment of
interest or principal payable under any of the securities described in the
preceding clauses (i) and (ii) that is held by such custodian for the account of
the holder of a depository receipt, provided that (except as required by law) such
custodian is not authorized to make any deduction from the amount payable to the
holder of such depository receipt, or from any amount received by the custodian in
respect of such securities, or from any specific payment of interest or principal
payable under the securities evidenced by such depository receipt.

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

     “Voting Stock”, as applied to the stock of any corporation, means stock of any
class or classes (however designated), the outstanding shares of which have, by the
terms thereof, ordinary voting power to elect a majority of the members of the
board of directors (or other governing body) of such corporation, other than stock
having such power only by reason of the happening of a contingency.

     Section 1.02. Officers’ Certificates and Opinions. Every Officers’
Certificate, Opinion of Counsel, and other certificate or opinion to be delivered
to the Trustee under this Indenture with respect to any action to be taken by the
Trustee (except for the Officers’ Certificate required by Section 10.04) shall
include the following:

10

 

     (a) a statement that each individual signing such certificate or opinion has
read all covenants and conditions of this Indenture relating to such proposed action,
including the definitions herein relating thereto;

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

     (c) a statement that, in the opinion of each such individual, 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

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

     Section 1.03. Form of Documents Delivered to Trustee. In any case where several
matters are required to be certified by, or covered by an opinion of, any specified
Person, it is not necessary that all such matters be certified by, or covered by the
opinion of, only one such Person, or that they be so certified or covered by only one
document, but one such Person may certify or give an opinion with respect to some matters
and one or more other such Persons as to the other matters, and any such Person may
certify or give an opinion as to such matters in one or several documents.

     Any certificate or opinion of an officer of the Company may be based, insofar as it
relates to legal matters, upon a certificate or opinion of, or representations by, legal
counsel, unless such officer knows that any such certificate, opinion, or representation
is erroneous. Any opinion of counsel for the Company may be based, insofar as it relates
to factual matters, upon a certificate or opinion of, or representations by, an officer or
officers of the Company, unless such counsel knows that any such certificate, opinion, or
representation is erroneous.

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

     Section 1.04. Acts of Securityholders. (a) Any request, demand, authorization,
direction, notice, consent, waiver, or other action provided by this Indenture to be given
or taken by Securityholders may be embodied in and evidenced by one or more instruments of
substantially similar tenor signed by such Securityholders in person or by an agent duly
appointed in writing; and, except as herein otherwise expressly provided, such action shall
become effective when such instrument or instruments are delivered to the Trustee and (if
expressly required by the applicable terms of this Indenture) to the Company. If any

11

 

Securities are denominated in coin or currency other than that of the United States, then
for the purposes of determining whether the Holders of the requisite principal amount of
Securities have taken any action as herein described, the principal amount of such
Securities shall be deemed to be that amount of United States dollars that could be
obtained for such principal amount on the basis of the spot rate of exchange into United
States dollars for the currency in which such Securities are denominated (as evidenced to
the Trustee by a certificate provided by a financial institution, selected by the Company,
that maintains an active trade in the currency in question, acting as conversion agent) as
of the date the taking of such action by the Holders of such requisite principal amount is
evidenced to the Trustee as provided in the immediately preceding sentence. Such instrument
or instruments (and the action embodied therein and evidenced thereby) are herein sometimes
referred to as the “Act” of the Securityholders signing such instrument or instruments.
Proof of execution of any such instrument or of a writing appointing any such agent shall
be sufficient for any purpose of this Indenture and (subject to Section 6.01) conclusive in
favor of the Trustee, the Company and the Guarantor, if made in the manner provided in this
Section 1.04.

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

     (c) The ownership of Securities shall for all purposes be determined by reference to
the Security Register, as such register shall exist as of the applicable date.

     (d) If the Company shall solicit from the Holders any request, demand, authorization,
direction, notice, consent, waiver or other action, the Company may, at its option, by
Board Resolution, fix in advance a Record Date for the determination of Holders entitled
to give such request, demand, authorization, direction, notice, consent, waiver or other
action, but the Company shall have no obligation to do so. If such Record Date is fixed,
such request, demand, authorization, direction, notice, consent, waiver or other action
may be given before or after such Record Date, but only the Holders of record at the close
of business on such Record Date shall be deemed to be Holders for the purpose of
determining whether Holders of the requisite proportion of Securities Outstanding have
authorized or agreed or consented to such request, demand, authorization, direction,
notice, consent, waiver or other action, and for that purpose the Securities Outstanding
shall be computed as of such Record Date; provided that no such authorization, agreement
or consent by the Holders on such Record Date

12

 

shall be deemed effective unless it shall become effective pursuant to the
provisions of this Indenture not later than six months after such Record Date.

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

     Section 1.05. Notices, etc., to Trustee, Company and Guarantor. Any request, order,
authorization, direction, consent, waiver, or other action to be taken by the Trustee, the
Company, the Guarantor or the Securityholders hereunder (including any Authentication
Order), and any notice to be given to the Trustee, the Company or the Guarantor with
respect to any action taken or to be taken by the Trustee, the Company, the Gurantor or
the Securityholders hereunder, shall be sufficient if made in writing and:

     (a) (if to be furnished or delivered to or filed with the Trustee by the Company
or any Securityholder) delivered to the Trustee at its Corporate Trust Office,
Attention: Corporate Finance, or

     (b) (if to be furnished or delivered to the Company or the Guarantor by the Trustee
or any Securityholder, and except as otherwise provided in Section 5.01(d) and, in the
case of a request for repayment, except as specified in the Security carrying the right
to repayment) mailed to the Company or the Guarantor, first-class postage prepaid, at its
principal office (as specified in the first paragraph of this instrument), Attention:
Treasurer, or at any other address hereafter furnished in writing by the Company or the
Guarantor to the Trustee.

     Section 1.06. Notice to Securityholders; Waiver. Where this Indenture or any Security
provides for notice to Securityholders of any event, such notice shall be sufficiently
given (unless otherwise expressly provided herein or in such Security) if in writing and
mailed, first-class postage prepaid, to each Securityholder affected by such event, at his
or her address as it appears in the Security Register as of the applicable Record Date,
not later than the latest date or earlier than the earliest date prescribed by this
Indenture or such Security for the giving of such notice. In any case where notice to
Securityholders is given by mail, neither the failure to mail such notice nor any defect
in any notice so mailed to any particular Securityholder shall affect the sufficiency of
such notice with respect to other Securityholders. Where this Indenture or any Security
provides for notice in any manner, such notice may be waived in writing by the Person
entitled to receive such notice, either before or after the event, and such waiver shall
be the equivalent of such notice. Waivers of notice by Securityholders shall be filed with
the Trustee, but such filing shall not be a condition precedent to the validity of any
action taken in reliance upon such waiver.

13

 

     In case, by reason of the suspension of regular mail service as a result of a strike,
work stoppage or otherwise, it shall be impractical to mail notice of any event to any
Securityholder when such notice is required to be given pursuant to any provision of this
Indenture or the applicable Security, then any method of notification as shall be
satisfactory to the Trustee and the Company shall be deemed to be sufficient for the
giving of such notice.

     Section 1.07. Conflict with Trust Indenture Act. If any provision hereof limits,
qualifies or conflicts with another provision hereof which is required to be included in
this Indenture by any of the provisions of the TIA, such required provision shall control.

     Section 1.08. Effect of Headings and Table of Contents. The Article and Section
headings herein and the Table of Contents hereof are for convenience only and shall not
affect the construction of any provision of this Indenture.

     Section 1.09. Successors and Assigns. All covenants and agreements in this Indenture
by the Company and the Guarantor shall bind their successors and assigns, whether so
expressed or not.

     Section 1.10. Separability Clause. In case any provision in this Indenture or in the
Securities shall be invalid, illegal or unenforceable, the validity, legality and
enforceability of the remaining provisions shall not in any way be affected or impaired
thereby.

     Section 1.11. Benefits of Indenture. Nothing in this Indenture or in any
Securities, express or implied, shall give to any Person, other than the parties hereto,
their successors hereunder, the Authenticating Agent, the Security Registrar, any Paying
Agent, and the Holders of Securities (or such of them as may be affected thereby), any
benefit or any legal or equitable right, remedy or claim under this Indenture.

     Section 1.12. Governing Law. This Indenture, the Securities and the Guarantee shall
be governed by and construed in accordance with the laws of the State of New York.

     Section 1.13. Counterparts. This instrument may be executed in any number of
counterparts, each of which when so executed shall be deemed to be an original, but all of
which shall together constitute but one and the same instrument.

     Section 1.14. Judgment Currency. The Company and the Guarantor agree, to the fullest
extent that they may effectively do so under applicable law, that (a) if for the purpose
of obtaining judgment in any court with respect to the Securities of any series or the
Guarantee it is necessary to convert the sum due in respect of the principal, premium, if
any, or interest, if any, payable with respect to such Securities into a currency in
which a judgment can be rendered (the

14

 

“Judgment Currency”), the rate of exchange from the currency in which payments under such
Securities is payable (the “Required Currency”) into the Judgment Currency shall be the
highest bid quotation (assuming European-style quotation—i.e., Required Currency per
Judgment Currency) received by the Company or the Guarantor from three recognized foreign
exchange dealers in the City of New York for the purchase of the aggregate amount of the
judgment (as denominated in the Judgment Currency) on the Business Day preceding the date
on which a final unappealable judgment is rendered, for settlement on such payment date,
and at which the applicable dealer timely commits to execute a contract, and (b) the
Company’s and the Guarantor’s obligations under this Indenture to make payments in the
Required Currency (i) shall not be discharged or satisfied by any tender, or by any
recovery pursuant to any judgment (whether or not entered in accordance with the preceding
clause (a)), in any currency other than the Required Currency, except to the extent that
such tender or recovery shall result in the actual receipt by the judgment creditor of the
full amount of the Required Currency expressed to be payable in respect of such payments,
(ii) shall be enforceable as an alternative or additional cause of action for the purpose
of recovering in the Required Currency the amount, if any, by which such actual receipt
shall fall short of the full amount of the Required Currency so expressed to be payable,
and (iii) shall not be affected by judgment being obtained for any other sum due under this
Indenture.

     Section 1.15. Legal Holidays.

     In any case where any Interest Payment Date, Redemption Date, Repayment Date or
Maturity of any Security shall not be a Business Day at any Place of Payment, then
(notwithstanding any other provision of this Indenture or of the Securities) payment of
interest or principal (and premium, if any) need not be made at such Place of Payment on
such date, but may be made on the next succeeding Business Day at such Place of Payment
with the same force and effect as if made on the Interest Payment Date, Redemption Date,
Repayment Date or at Maturity; provided, that no interest shall accrue for the period from
and after such Interest Payment Date, Redemption Date, Repayment Date or at Maturity, as
the case may be.

Article 2

Security Forms

     Section 2.01. Forms Generally. The Securities of each series shall have such
appropriate insertions, omissions, substitutions and other variations as are required or
permitted by this Indenture and may have such letters, numbers or other marks of
identification and such legends or endorsements placed thereon, as may be required to
comply with the rules of any securities exchange, or as may, consistently herewith, be
determined by the officers executing such Securities, as evidenced by their execution of
the Securities. Any portion of the text of any

15

 

Security may be set forth on the reverse thereof, with an appropriate reference
thereto on the face of the Security.

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

     Section 2.02. Forms of Securities. Each Security shall be in one of the forms
approved from time to time by or pursuant to any Board Resolution, or established in one
or more indentures supplemental hereto. Prior to the delivery to the Trustee for
authentication of any Security in any form approved by or pursuant to a Board Resolution,
the Company shall deliver to the Trustee a copy of such Board Resolution, together with a
true and correct copy of the form of Security which has been approved thereby, or, if a
Board Resolution authorizes a specific officer or officers to approve a form of Security,
together with a certificate of such officer or officers approving the form of Security
attached thereto; provided, however, that with respect to all Securities issued pursuant
to the same Board Resolution, the required copy of such Board Resolution, together with
the appropriate attachment, need be delivered only once. Any form of Security approved by
or pursuant to a Board Resolution must be acceptable as to form to the Trustee, such
acceptance to be evidenced by the Trustee’s authentication of Securities in that form or
by a certificate signed by a Responsible Officer of the Trustee and delivered to the
Company.

     Section 2.03. Securities in Global Form. If Securities of a series are issuable in
whole or in part in global form, the global security representing such Securities may
provide that it shall represent the aggregate amount of Outstanding Securities from time to
time endorsed thereon and may also provide that the aggregate amount of Outstanding
Securities represented thereby may from time to time be reduced to reflect exchanges or
increased to reflect the issuance of additional Securities. Any endorsement of a Security
in global form to reflect the amount (or any increase or decrease in the amount) of
Outstanding Securities represented thereby shall be made in such manner and by such Person
or Persons as shall be specified therein or in the Authentication Order delivered to the
Trustee pursuant to Section 3.03 hereof.

     Section 2.04. Form of Trustee’s Certificate of Authentication. The form of Trustee’s
Certificate of Authentication for any Security issued pursuant to this Indenture shall be
substantially as follows:

TRUSTEE’S CERTIFICATE OF AUTHENTICATION

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

16

 

	 	 	 	 	 
	 	

UNION BANK, N.A., as Trustee,

 	 
	 	By:  	

 	 
	 	 	Authorized Signatory 	 
	 	 	 	 
	 

Article 3

The Securities

     Section 3.01. General Title; General Limitations; Issuable in Series; Terms of
Particular Series. The aggregate principal amount of Securities that may be authenticated,
delivered, and Outstanding at any time under this Indenture is not limited.

     The Securities may be issued in one or more series in such aggregate principal amount
as may from time to time be authorized by the Board of Directors. All Securities of a
series issued under this Indenture shall in all respects be equally and ratably entitled to
the benefits hereof, without preference, priority, or distinction on account of the actual
time of the authentication and delivery or Scheduled Maturity Date thereof.

     Each series of Securities shall be created either by or pursuant to one or more
Board Resolutions or by one or more indentures supplemental hereto. Any such Board
Resolution or supplemental indenture (or, in the case of a series of Securities created
pursuant to a Board Resolution, any officer or officers authorized by such Board
Resolution) shall establish the terms of any such series of Securities, including the
following (as and to such extent as may be applicable):

     (1) the title of such series;

     (2) the limit, if any, upon the aggregate principal amount or issue price of the
Securities of such series;

     (3) the issue date or issue dates of the Securities of such series;

     (4) the Scheduled Maturity Date of the Securities of such series;

     (5) the place or places where the principal, premium, if any, interest, if any, and
additional amounts, if any, payable with respect to the Securities of such series shall be
payable;

     (6) whether the Securities of such series will be issued at par or at a premium
over or a discount from their face amount;

17

 

     (7) the rate or rates (which may be fixed or variable) at which the Securities of
such series shall bear interest, if any, and, if applicable, the method by which such
rate or rates may be determined;

     (8) the date or dates (or the method by which such date or dates may be determined)
from which interest, if any, shall accrue, and the Interest Payment Dates on which such
interest shall be payable;

     (9) the rights, if any, to defer payments of interest on the Securities by
extending the interest payment periods and the duration of such extension;

     (10) the period or periods within which, the Redemption Price(s) or Repayment
Price(s) at which, and any other terms and conditions upon which the Securities of such
series may be redeemed or repaid, in whole or in part, by the Company;

     (11) the obligation, if any, of the Company to redeem, repay, or purchase any of the
Securities of such series pursuant to any sinking fund, mandatory redemption, purchase
obligation, or analogous provision at the option of a Holder thereof, and the period or
periods within which, the Redemption Price(s) or Repayment Price(s) or other price or
prices at which, and any other terms and conditions upon which the Securities of such
series shall be redeemed, repaid, or purchased, in whole or in part, pursuant to such
obligation;

     (12) whether the Securities of such series are to be issued in whole or in part in
global form and, if so, the identity of the Depositary for such global security and the
terms and conditions, if any, upon which interests in the Securities represented by such
global security may be exchanged, in whole or in part, for the individual Securities
represented thereby (if other than as provided in Section 3.05);

     (13) whether such Securities are Subordinated Securities and if so, the provisions
for such subordination if other than the provisions set forth in Article 13;

     (14) the denominations in which the Securities of such series will be issued
(which may be any denomination as set forth in the terms of such Securities) if other
than U.S.$1,000 or an integral multiple thereof;

     (15) whether and under what circumstances additional amounts on the Securities of
such series shall be payable in respect of any taxes, assessments, or other governmental
charges withheld or deducted and, if so, whether the Company will have the option to
redeem such Securities rather than pay such additional amounts;

     (16) the basis upon which interest shall be calculated;

18

 

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

     (18) the exchange or conversion of the Securities of that series, whether or not at
the option of the Holders thereof, for or into new Securities of a different series or for
or into any other securities which may include shares of capital stock of the Company or
any Subsidiary of the Company or securities directly or indirectly convertible into or
exchangeable for any such shares or securities of entities unaffiliated with the Company
or any Subsidiary of the Company;

     (19) if other than U.S. dollars, the foreign or composite currency or currencies (each
such currency a “Specified Currency”) in which the Securities of such series shall be
denominated and in which payments of principal, premium, if any, interest, if any, or
additional amounts, if any, payable with respect to such Securities shall or may be
payable;

     (20) if the principal, premium, if any, interest, if any, or additional amounts, if
any, payable with respect to the Securities of such series are to be payable in any
currency other than that in which the Securities are stated to be payable, whether at the
election of the Company or of a Holder thereof, the period or periods within which, and the
terms and conditions upon which, such election may be made;

     (21) if the amount of any payment of principal, premium, if any, interest, if any, or
other sum payable with respect to the Securities of such series may be determined by
reference to the relative value of one or more Specified Currencies, commodities,
securities, or instruments, the level of one or more financial or non-financial indices,
or any other designated factors or formulas, the manner in which such amounts shall be
determined;

     (22) the exchange of Securities of such series, at the option of the Holders thereof,
for other Securities of the same series of the same aggregate principal amount of a
different authorized kind or different authorized denomination or denominations, or both;

     (23) whether the Securities of such series will by guaranteed by any Person or
Persons other than the Guarantor and, if so, the identity of such Person or Persons, the
terms and conditions upon which such Securities shall be guaranteed and, if applicable,
the terms and conditions upon which such guarantees may be subordinated to other
indebtedness of the respective guarantors;

     (24) the appointment by the Trustee of an Authenticating Agent in one or more places
other than the Corporate Trust Office of the Trustee, with power to

19

 

act on behalf of the Trustee, and subject to its direction, in the authentication and
delivery of the Securities of such series;

     (25) any trustees, depositaries, paying agents, transfer agents, exchange agents,
conversion agents, registrars, or other agents with respect to the Securities of such
series if other than the Trustee, Paying Agent and Security Registrar named herein;

     (26) the portion of the principal amount of Securities of such series, if other than
the principal amount thereof, that shall be payable upon declaration of acceleration of
the Maturity thereof pursuant to Section 5.02 or provable in bankruptcy pursuant to
Section 5.04;

     (27) any Event of Default with respect to the Securities of such series, if not set
forth herein, or any modification of any Event of Default set forth herein with respect
to such series;

     (28) any covenant solely for the benefit of the Securities of such series;

     (29) the inapplicability of Sections 4.02 and 4.03 of this Indenture to the
Securities of such series and if Section 4.03 is applicable, the covenants subject to
Covenant Defeasance under Section 4.03; and

     (30) any other terms not inconsistent with the provisions of this
Indenture.

     If all of the Securities issuable by or pursuant to any Board Resolution are not to
be issued at one time, it shall not be necessary to deliver the Officers’ Certificate and
Opinion of Counsel required by Section 3.03 hereof 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 such Security.

     If any series of Securities shall be established by action taken pursuant to any Board
Resolution, the execution by the officer or officers authorized by such Board Resolution of
an Authentication Order with respect to the first Security of such series to be issued, and
the delivery of such Authentication Order to the Trustee at or before the time of issuance
of the first Security of such series, shall constitute a sufficient record of such action.
Except as otherwise permitted by Section 3.03, if all of the Securities of any such series
are not to be issued at one time, the Company shall deliver an Authentication Order with
respect to each subsequent issuance of Securities of such series, but such Authentication
Orders may be executed by any authorized officer or officers of the Company, whether or not
such officer or officers would have been authorized to establish such series pursuant to
the aforementioned Board Resolution.

20

 

     Unless otherwise provided by or pursuant to the Board Resolution or supplemental
indenture creating such series (i) a series may be reopened for issuances of additional
Securities of such series, provided that if the additional Securities of such series are
not fungible with the Securities in such series for U.S. federal income tax purposes such
additional Securities will have a separate CUSIP number and (ii) all Securities of the same
series shall be substantially identical, except for the initial Interest Payment Date,
issue price, initial interest accrual date and the amount of the first interest payment.

     The form of the Securities of each series shall be established in a supplemental
indenture or by or pursuant to the Board Resolution creating such series. The Securities
of each series shall be distinguished from the Securities of each other series in such
manner as the Board of Directors or its authorized representative or representatives may
determine.

     Unless otherwise provided with respect to Securities of a particular series, the
Securities of any series may only be issuable in registered form, without coupons.

     Section 3.02. Denominations and Currency. The Securities of each series shall be
issuable in such denominations and currency as shall be provided in the provisions of this
Indenture or by or pursuant to the Board Resolution or supplemental indenture creating such
series. In the absence of any such provisions with respect to the Securities of any series,
the Securities of that series shall be issuable only in fully registered form in
denominations of U.S. $2,000 and integral multiples of U.S. $1,000 in excess thereof.

     Section 3.03. Execution, Authentication and Delivery, and Dating. The Securities
shall be executed on behalf of the Company by any two of the Chairman, Vice Chairman,
Chief Executive Officer, Chief Financial Officer, Executive Vice President and any Vice
President of the Company and attested by its Secretary or any one of its Assistant
Secretaries. The signature of any of these officers on the Securities may be manual or
facsimile. Typographical and other minor errors or defects in any such signature shall not
affect the validity or enforceability of any Security that has been duly authenticated and
delivered by the Trustee.

     Unless otherwise provided in the form of Security for any series, all
Securities shall be dated the date of their authentication.

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

21

 

     At any time and from time to time after the execution and delivery of this Indenture,
the Company may deliver Securities to the Trustee for authentication, together with a
Company Order for authentication and delivery (such Order an “Authentication Order”) with
respect to such Securities, and the Trustee shall, upon receipt of such Authentication
Order, in accordance with procedures acceptable to the Trustee set forth in the
Authentication Order, and subject to the provisions hereof, authenticate and deliver such
Securities to such recipients as may be specified from time to time pursuant to such
Authentication Order. The material terms of such Securities shall be determinable by
reference to such Authentication Order and procedures. If provided for in such procedures,
such Authentication Order may authorize authentication and delivery of such Securities
pursuant to oral instructions from the Company or its duly authorized agent, which
instructions shall be promptly confirmed in writing. In authenticating such Securities and
accepting the additional responsibilities under this Indenture in relation to such
Securities, the Trustee shall be entitled to receive, and (subject to the provisions of
Section 6.01 hereof) shall be fully protected in relying upon:

     (1) an executed supplemental indenture, if any;

     (2) an Officers’ Certificate, certifying as to the authorized form or forms and terms
of such Securities; and

     (3) an Opinion of Counsel, stating that:

     (a) the form or forms and terms of such Securities have been established by
and in conformity with the provisions of this Indenture; provided, that if all
such Securities are not to be issued at the same time, such Opinion of Counsel may
state that such terms will be established in conformity with the provisions of
this Indenture, subject to any conditions specified in such Opinion of Counsel;
and

     (b) such Securities and the related Guarantee, when authenticated and
delivered by the Trustee and issued by the Company in the manner and subject to
any conditions specified in such Opinion of Counsel, will constitute valid and
legally binding obligations of the Company and the Guarantor, respectively,
enforceable against the Company and the Guarantor, respectively, in accordance
with their terms, subject to bankruptcy, insolvency, moratorium, reorganization,
and other laws of general applicability relating to or affecting the enforcement
of creditors’ rights and to general principles of equity;

provided, however, that if all Securities issuable by or pursuant to a Board Resolution or
supplemental indenture are not to be originally issued at one time, it shall not be
necessary to deliver the Officers’ Certificate or Opinion of Counsel otherwise required
pursuant to this paragraph at or prior to the time of authentication of each such Security
if such documents are delivered at or prior to the time of authentication upon original
issuance of the first such Security to be

22

 

issued. After the original issuance of the first such Security to be issued, any separate
request by the Company that the Trustee authenticate such Securities for original issuance
will be deemed to be a certification by the Company that it is in compliance with all
conditions precedent provided for in this Indenture relating to the authentication and
delivery of such Securities.

     The Trustee shall not be required to authenticate such Securities if the issue
thereof will adversely affect the Trustee’s own rights, duties, or immunities under the
Securities and this Indenture.

     If the Company shall establish pursuant to Section 3.01 that Securities of a series
may be issued in whole or in part in global form, then the Company shall execute, and the
Trustee shall (in accordance with this Section 3.03 and the Authentication Order with
respect to such series) authenticate and deliver, one or more Securities in global form
that (i) shall represent and shall be denominated in an aggregate amount equal to the
aggregate principal amount of the Outstanding Securities of such series to be represented
by such one or more Securities in global form, (ii) shall be registered, in the name of the
Depositary for such Security or Securities in global form, or in the name of a nominee of
such Depositary, (iii) shall be delivered to such Depositary or pursuant to such
Depositary’s instruction, and (iv) shall bear a legend substantially as follows: “Unless
and until it is exchanged in whole or in part for Securities in certificated form, this
Security may not be transferred except as a whole by the Depositary to a nominee of the
Depositary, or by a nominee of the Depositary to the Depositary or another nominee of the
Depositary, or by the Depositary or any such nominee to a successor Depositary or a nominee
of such successor Depositary.” Each Depositary designated pursuant to Section 3.01 for a
Security in global form must, at the time of its designation and at all times while it
serves as Depositary, be a clearing agency registered under the Securities Exchange Act of
1934, as amended (the “Exchange Act”) and any other applicable statute or regulation.

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

     Section 3.04. Temporary Securities. Pending the preparation of definitive Securities
of any series, the Company may execute, and, upon receipt of the documents required by
Sections 2.02, 3.01 and 3.03 hereof, together with an Authentication Order, the Trustee
shall authenticate and deliver, temporary Securities of such series that are printed,
lithographed, typewritten, mimeographed, or otherwise produced, in any authorized
denomination, substantially of the tenor of the definitive Securities in lieu of which
they are issued in registered form, without coupons, and with such appropriate insertions,
omissions, substitutions, and other variations as the officers executing such

23

 

Securities may determine, as evidenced by their execution of such Securities. In the case
of Securities of any series for which a temporary Security may be issued in global form,
such temporary global security shall represent all of the Outstanding Securities of such
series and tenor.

     Except in the case of temporary Securities in global form, which shall be exchanged
in accordance with the provisions thereof, if temporary Securities of any series are
issued, the Company will cause definitive Securities of such series to be prepared without
unreasonable delay. After the preparation of definitive Securities, the temporary
Securities of such series shall be exchangeable, at the Corporate Trust Office of the
Trustee, or at such other office or agency as may be maintained by the Company in a Place
of Payment pursuant to Section 10.02 hereof, for definitive Securities of such series
having identical terms and provisions, upon surrender of the temporary Securities of such
series, at the Company’s own expense and without charge to the Holder; and upon surrender
for cancellation of any one or more temporary Securities of any series, the Company shall
execute and the Trustee shall authenticate and deliver in exchange therefor a like
principal amount of definitive Securities of such series in authorized denominations
containing identical terms and provisions. Unless otherwise specified as contemplated by
Section 3.01 with respect to a temporary Security in global form, until so exchanged, the
temporary Securities of such series shall in all respects be entitled to the same benefits
under this Indenture as definitive Securities of such series.

     Section 3.05. Registration, Transfer and Exchange. With respect to the Securities of
each series, the Trustee shall keep a register (herein sometimes referred to as the
“Security Register”) which shall provide for the registration of Securities of such
series, and for registration of transfers of Securities of such series, in accordance
with information to be provided to the Trustee by the Company, subject to such reasonable
regulations as the Trustee may prescribe. Such register shall be in written form or in
any other form capable of being converted into written form within a reasonable time. At
all reasonable times the information contained in such register or registers shall be
available for inspection, during normal business hours, at the Corporate Trust Office of
the Trustee or at such other office or agency to be maintained by the Company pursuant to
Section 10.02 hereof.

     Upon due presentation for registration of transfer of any Security of any series at
the Corporate Trust Office of the Trustee or at any other office or agency maintained by
the Company with respect to that series pursuant to Section 10.02 hereof, the Company
shall execute, and the Trustee shall authenticate and deliver, in the name of the
designated transferee or transferees, one or more new Securities of such series of any
authorized denominations, of like aggregate principal amount, tenor, terms and Scheduled
Maturity Date.

     Any other provision of this Section 3.05 notwithstanding, unless and until it is
exchanged in whole or in part for the individual Securities represented

24

 

thereby, in definitive form, a Security in global form representing all or a portion of
the Securities of a series may not be transferred except as a whole by the Depositary for
such series to a nominee of such Depositary, or by a nominee of such Depositary to such
Depositary or another nominee of such Depositary, or by such Depositary or any such
nominee to a successor Depositary for such series or a nominee of such successor
Depositary.

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

     If at any time the Depositary for the Securities of a series represented by one or
more Securities in global form notifies the Company that it is unwilling or unable to
continue as Depositary for the Securities of such series, or if at any time the Depositary
for the Securities of such series shall no longer be eligible under Section 3.03 hereof,
the Company, by Company Order, shall appoint a successor Depositary with respect to the
Securities of such series. If a successor Depositary for the Securities of such series is
not appointed by the Company within 90 days after the Company receives such notice or
becomes aware of such ineligibility, the Company’s election pursuant to Section 3.01 that
such Securities be represented by one or more Securities in global form shall no longer be
effective with respect to the Securities of such series and the Company will execute, and
the Trustee, upon receipt of an Authentication Order for the authentication and delivery
of definitive Securities of such series, will authenticate and deliver Securities of such
series in definitive form, in authorized denominations, in an aggregate principal amount,
and of like terms and tenor, equal to the principal amount of the Security or Securities
in global form representing such series, in exchange for such Security or Securities in
global form.

     The Company may at any time and in its sole discretion and subject to the procedures
of the Depositary determine that individual Securities of any series issued in global form
shall no longer be represented by such Security or Securities in global form. In such event
the Company will execute, and the Trustee, upon receipt of an Authentication Order for the
authentication and delivery of definitive Securities of such series and of the same terms
and tenor, will authenticate and deliver Securities of such series in definitive form, in
authorized denominations, and in aggregate principal amount equal to the principal amount
of the Security or Securities in global form representing such series in exchange for such
Security or Securities in global form.

     If specified by the Company pursuant to Section 3.01 with respect to a series of
Securities issued in global form, the Depositary for such series of Securities may
surrender a Security in global form for such series of Securities in

25

 

exchange in whole or in part for Securities of such series in definitive form and of
like terms and tenor on such terms as are acceptable to the Company and such Depositary.
Thereupon, the Company shall execute, and the Trustee upon receipt of an Authentication
Order for the authentication and delivery of definitive Securities of such series, shall
authenticate and deliver, without service charge:

     (a) to each Person specified by such Depositary, a new definitive Security or
Securities of the same series and of the same tenor and terms, in authorized
denominations, in aggregate principal amount equal to and in exchange for such Person’s
beneficial interest in the Security in global form; and

     (b) to such Depositary, a new Security in global form in a denomination equal to the
difference, if any, between the principal amount of the surrendered Security in global
form and the aggregate principal amount of the definitive Securities delivered to Holders
pursuant to clause (a) above.

     Upon the exchange of a Security in global form for Securities in definitive form,
such Security in global form shall be canceled by the Trustee or an agent of the Company
or the Trustee. Securities issued in definitive form in exchange for a Security in global
form pursuant to this Section 3.05 shall be registered in such names and in such
authorized denominations as the Depositary for such Security in global form, pursuant to
instructions from its direct or indirect participants or otherwise, shall instruct the
Trustee or an agent of the Company or the Trustee in writing. The Trustee or such agent
shall deliver such Securities to or as directed by the Persons in whose names such
Securities are so registered or to the Depositary.

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

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

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

     Unless otherwise provided in the Security to be transferred or exchanged, no service
charge shall be imposed for any registration of transfer or exchange of Securities, but the
Company may (unless otherwise provided in such Security)
require payment of a sum sufficient to cover any tax or other governmental charge that
may be imposed in connection with any transfer or exchange of Securities,

26

 

other than exchanges pursuant to Sections 3.04, 3.06, 9.06 and 11.07 hereof not
involving any transfer.

     The Company shall not be required to (i) issue, register the transfer of, or exchange
any Security of any series during a period beginning at the opening of business 15 days
before the day of the mailing of a notice of redemption of Securities of such series
selected for redemption under Section 11.03 and ending at the close of business on the
date of such mailing, or (ii) register the transfer of or exchange any Security so
selected for redemption in whole or in part, except in the case of any Security to be
redeemed in part, the portion thereof not to be redeemed.

     Section 3.06. Mutilated, Destroyed, Lost and Stolen Securities. If (i) any mutilated
Security is surrendered to the Trustee, or the Company and the Trustee receive evidence to
their satisfaction of the destruction, loss or theft of any Security, and (ii) there is
delivered to the Company and the Trustee such security or indemnity as may be required by
them to save each of them harmless, then, in the absence of notice to the Company or the
Trustee that such Security has been acquired by a bona fide purchaser, the Company may in
its discretion execute and upon request of the Company the Trustee shall authenticate and
deliver, in exchange for or in lieu of any such mutilated, destroyed, lost or stolen
Security, a new Security of like tenor, terms, series, Scheduled Maturity Date, and
principal amount, having the Guarantee noted therein, and bearing a number not
contemporaneously outstanding.

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

     Upon the issuance of any new Security under this Section 3.06, the Company may
require the payment of a sum sufficient to cover any tax or other governmental charge
that may be imposed in relation thereto and any other expenses (including the fees and
expenses of the Trustee) connected therewith.

     Every new Security issued pursuant to this Section 3.06 in lieu of any mutilated,
destroyed, lost or stolen Security shall constitute an original additional contractual
obligation of the Company and the Guarantor, whether or not the mutilated, destroyed, lost
or stolen Security shall be at any time enforceable by anyone, and shall be entitled to
all the benefits of this Indenture equally and proportionately with any and all other
Securities of the same series and Guarantee duly issued hereunder.

     The provisions of this Section 3.06 are exclusive and shall preclude (to the extent
lawful) all other rights and remedies with respect to the replacement or payment of
mutilated, destroyed, lost or stolen Securities.

27

 

     Section 3.07. Payment of Interest; Interest Rights Preserved. Interest on any Security
which is payable and is punctually paid or duly provided for on any Interest Payment Date
shall, if so provided in such Security, be paid to the Person in whose name that Security
(or one or more Predecessor Securities) is registered at the close of business on the
applicable Record Date, notwithstanding any transfer or exchange of such Security
subsequent to such Record Date and prior to such Interest Payment Date (unless such
Interest Payment Date is also the date of Maturity of such Security).

     The Company shall pay all Additional Interest, if any, in the same manner and on the
same dates as interest at the stated rate in the Securities and in the amounts set forth
in the Registration Rights Agreement. In the event the Company is required to pay
Additional Interest, the Company shall provide written notice to the Trustee of the
Company’s obligation to pay Additional Interest no later than 15 days prior to the next
Interest Payment Date, which notice shall set forth the amount of the Additional Interest
to be paid by the Company.

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

     (a) The Company may elect to make payment of any Defaulted Interest to the Persons in
whose names any such Securities (or their respective Predecessor Securities) are registered
at the close of business on a Special Record Date for the payment of such Defaulted
Interest, which shall be fixed in the following manner. The Company shall notify the
Trustee in writing of the amount of Defaulted Interest proposed to be paid on each such
Security and the date of the proposed payment, and at the same time the Company shall
deposit with the Trustee an amount of money equal to the aggregate amount proposed to be
paid in respect of such Defaulted Interest or shall make arrangements satisfactory to the
Trustee for such deposit prior to the date of the proposed payment, such money when
deposited to be held in trust for the benefit of the Persons entitled to such Defaulted
Interest as provided in this clause. Thereupon the Trustee shall fix a Special Record Date
for the payment of such Defaulted Interest which shall be not more than 15 nor less than 10
days prior to the date of the proposed payment and not less than 10 days after the receipt
by the Trustee of the notice of the proposed payment. The Trustee shall promptly notify the
Company of such Special Record Date and, in the name and at the expense of the Company,
shall cause notice of the proposed payment of such Defaulted Interest and the Special
Record Date therefor to be mailed, first-class postage prepaid, to the Holder of each such
Security at his address as it appears in the Security Register, not less than 10 days prior
to such Special Record Date. Notice of the proposed payment of such

28

 

Defaulted Interest and the Special Record Date therefor having been mailed as
aforesaid, such Defaulted Interest shall be paid to the Persons in whose names such
Securities (or their respective Predecessor Securities) are registered at the close of
business on such Special Record Date and shall no longer be payable pursuant to the
following clause (b).

     (b) The Company may make payment of any Defaulted Interest in any other lawful manner
not inconsistent with the requirements of any securities exchange on which such Securities
may be listed, and upon such notice as may be required by such exchange, if, after notice
given by the Company to the Trustee of the proposed payment pursuant to this clause, such
manner of payment shall be deemed practicable by the Trustee.

     Interest on Securities of any series that bear interest may be paid by mailing a
check to the address of the Person entitled thereto at such address as shall appear in
the Securities Register for such series or by such other means as may be specified in
the form of such Security.

     Subject to the foregoing provisions of this Section 3.07 and the provisions of
Section 3.05 hereof, each Security delivered under this Indenture upon registration of
transfer of or in exchange for or in lieu of any other Security shall carry the rights to
interest accrued and unpaid, and to accrue, which were carried by such other Security.

     Section 3.08. Persons Deemed Owners. Prior to due presentment of a Security for
registration of transfer, the Company, the Trustee, and any agent of the Company or the
Trustee may treat the Person in whose name any Security is registered on the applicable
Record Date(s) as the owner of such Security for the purpose of receiving payment of
principal, premium, if any, interest, if any (subject to Sections 3.05 and 3.07 hereof),
and any additional amounts payable with respect to such Security, and for all other
purposes whatsoever, whether or not such Security be overdue, and neither the Company,
the Trustee, nor any agent of the Company or the Trustee shall be affected by notice to
the contrary.

     None of the Company, the Trustee, any Authenticating Agent, any Paying Agent, the
Security Registrar, or any co-Security Registrar will have any responsibility or liability
for any aspect of the records relating to or payments made on account of beneficial
ownership interests of a Security in global form or for maintaining, supervising or
reviewing any records relating to such beneficial ownership interests and each of them may
act or refrain from acting without liability on any information relating to such records
provided by the Depositary.

     Section 3.09. Cancellation. All Securities surrendered for payment, redemption,
registration of transfer, exchange, or credit against a sinking or analogous fund shall,
if surrendered to any Person other than the Trustee, be
delivered to the Trustee and, if not already canceled, shall be promptly canceled
by it. The Company may at any time deliver to the Trustee for cancellation any

29

 

Securities previously authenticated and delivered hereunder which the Company may have
acquired in any manner whatsoever, and all Securities so delivered shall be promptly
canceled by the Trustee. Acquisition of such Securities by the Company shall not operate as
a redemption or satisfaction of the indebtedness represented by such Securities unless and
until the same are delivered to the Trustee for cancellation. No Security shall be
authenticated in lieu of or in exchange for any Securities canceled as provided in this
Section 3.09, except as expressly permitted by this Indenture. The Trustee shall dispose of
all canceled Securities in accordance with its customary procedures and deliver a
certificate of such disposition to the Company.

     Section 3.10. Computation of Interest. Unless otherwise provided as contemplated in
Section 3.01, interest on the Securities shall be calculated on the basis of a 360-day
year of twelve 30-day months.

     Section 3.11. CUSIP Numbers. The Company in issuing the Securities may use “CUSIP”
and “ISIN” numbers (if then generally in use), and, if so, the Trustee shall use the CUSIP
or ISIN numbers, as the case may be, in notices of redemption as a convenience to Holders;
provided, that any such notice may state that no representation is made as to the
correctness or accuracy of the CUSIP or ISIN number, as the case may be, either as printed
on the Securities or as contained in any notice of a redemption and that reliance may be
placed only on the other identification numbers printed on the Securities. The Company
will promptly notify the Trustee in writing of any change in the CUSIP or ISIN number.

ARTICLE 4

Satisfaction and Discharge

     Section 4.01. Satisfaction and Discharge of Indenture. This Indenture shall cease
to be of further effect with respect to any series of Securities (except as to any
surviving rights of conversion or transfer or exchange of Securities of such series
expressly provided for herein or in the form of Security for such series), and the
Trustee, on demand of and at the expense of the Company, shall execute proper
instruments acknowledging satisfaction and discharge of this Indenture as to such
series, when

     (a) either

     (i) all Securities of that series theretofore authenticated and delivered
(other than (A) Securities of such series which have been destroyed, lost, or
stolen and which have been replaced or paid as provided in Section 3.06, and (B)
Securities of such series for whose payment money has theretofore been deposited
in trust or segregated and held in trust by the Company and thereafter repaid to
the Company or

30

 

discharged from such trust, as provided in Section 4.07) have been
delivered to the Trustee canceled or for cancellation; or

     (ii) all such Securities of that series not theretofore delivered to the
Trustee canceled or for cancellation

     (A) have become due and payable, or

     (B) will, in accordance with their Scheduled Maturity Date, become
due and payable within one year, or

     (C) 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 any of the cases described in subparagraphs (A), (B), or(C) above, the Company has
irrevocably deposited or caused to be deposited with the Trustee, as trust funds in trust
for the purpose, (x) an amount in money sufficient, (y) U.S. Government Obligations or
Equivalent Government Securities which through the payment of interest and principal in
respect thereof in accordance with their terms will provide, not later than one day before
the due date of any payment, money sufficient, or (z) a combination of (x) and (y)
sufficient, in the opinion with respect to (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 such Securities with respect
to principal, premium, if any, and interest, if any, to the date of such deposit (in the
case of Securities which have become due and payable), or to the Scheduled Maturity Date
or Redemption Date, as the case may be; provided, however, that if such U.S. Government
Obligations or Equivalent Government Securities are callable or redeemable at the option
of the issuer thereof, the amount of such money, U.S. Government Obligations, and
Equivalent Government Securities deposited with the Trustee must be sufficient to pay and
discharge the entire indebtedness referred to above if such issuer elects to exercise such
call or redemption provisions at any time prior to the Scheduled Maturity Date or
Redemption Date, as the case may be. The Company, but not the Trustee, shall be
responsible for monitoring any such call or redemption provision; and

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

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

31

 

     Notwithstanding the satisfaction and discharge of this Indenture with respect to any
series of Securities, the obligations of the Company under paragraph (a) of this Section
4.01 and its obligations to the Trustee with respect to that series under Section 6.07
shall survive, and the obligations of the Trustee under Sections 4.05, 4.07 and 10.03
shall survive.

     Section 4.02. Discharge and Defeasance

     The provisions of this Section 4.02 and Section 4.04 (insofar as relating to this
Section) shall apply to the Securities of each series unless specifically otherwise
provided in a Board Resolution or indenture supplemental hereto provided pursuant to
Section 3.01. In addition to discharge of this Indenture pursuant to Section 4.01, in the
case of any series of Securities with respect to which the exact amount described in
subparagraph (a) of Section 4.04 can be determined at the time of making the deposit
referred to in such subparagraph (a), the Company shall be deemed to have paid and
discharged the entire indebtedness with respect to all the Securities of such a series as
provided in this Section 4.02 on and after the date the conditions set forth in Section
4.04 are satisfied, and the provisions of this Indenture with respect to the Securities of
such series shall no longer be in effect (except as to (i) rights of registration of
transfer and exchange of Securities of such series, (ii) substitution of mutilated,
destroyed, lost or stolen Securities of such series, (iii) rights of Holders of Securities
of such series to receive, solely from the trust fund described in subparagraph (a) of
Section 4.04, payments of principal thereof, premium, if any, and interest, if any, thereon
upon the original stated due dates or upon the Redemption Dates therefor (but not upon
acceleration), and remaining rights of the Holders of Securities of such series to receive
mandatory sinking fund payments, if any, (iv) the rights, obligations, duties and
immunities of the Trustee hereunder, (v) this Section 4.02 and Sections 4.07, 10.02 and
10.03 and (vi) the rights of the Holders of Securities of such series as beneficiaries
hereof with respect to the property so deposited with the Trustee payable to all or any of
them) (hereinafter called “Defeasance”), and the Trustee at the cost and expense of the
Company, shall execute proper instruments acknowledging the same.

     Section 4.03. Covenant Defeasance.

     The provisions of this Section 4.03 and Section 4.04 (insofar as relating to this
Section) shall apply to the Securities of each series unless specifically otherwise
provided in a Board Resolution or indenture supplemental hereto provided pursuant to
Section 3.01. In the case of any series of Securities with respect to which the exact
amount described in subparagraph (a) of Section 4.04 can be determined at the time of
making the deposit referred to in such subparagraph (a), (i) the Company shall be released
from its obligations under any covenants specified in or pursuant to Section 3.01 as being
subject to Covenant Defeasance with respect to such series (except as to (a) rights of
registration of
transfer and exchange of Securities of such series and rights under Sections 4.07,
10.02 and 10.03, (b) substitution of mutilated, destroyed, lost or stolen Securities

32

 

of such series, (c) rights of Holders of Securities of such series to receive, from the
Company pursuant to Section 10.01, payments of principal thereof and interest, if any,
thereon upon the original stated due dates or upon the Redemption Dates therefor (but not
upon acceleration), and remaining rights of the Holders of Securities of such series to
receive mandatory sinking fund payments, if any, (d) the rights, obligations, duties and
immunities of the Trustee hereunder and (e) the rights of the Holders of Securities of such
series as beneficiaries hereof with respect to the property so deposited with the Trustee
payable to all or any of them), and (ii) the occurrence of any event specified in Section
5.01(d) (with respect to any of the covenants specified in or pursuant to Section 3.01 as
being subject to Covenant Defeasance with respect to such series) shall be deemed not to be
or result in a default or an Event of Default, in each case with respect to the Outstanding
Securities of such series as provided in this Section 4.03 on and after the date the
conditions set forth in Section 4.04 are satisfied (hereinafter called “Covenant
Defeasance”), and the Trustee at the cost and expense of the Company, shall execute proper
instruments acknowledging the same. For this purpose, such Covenant Defeasance means that
the Company may omit to comply with and shall have no liability in respect of any term,
condition or limitation set forth in any such covenant (to the extent so specified in the
case of Section 5.01(d)), whether directly or indirectly by reason of any reference
elsewhere herein to any such covenant or by reason of any reference in any such covenant to
any other provision herein or in any other document, but the remainder of this Indenture
and the Securities of such series shall be unaffected thereby.

     Section 4.04. Conditions to Defeasance or Covenant Defeasance.

     The following shall be the conditions to application of either Sections 4.02 or 4.03
to the Outstanding Securities:

     (a) with reference to Sections 4.02 or 4.03, the Company has irrevocably deposited or
caused to be irrevocably deposited with the Trustee as funds in trust, specifically pledged
as security for, and dedicated solely to, the benefit of the Holders of Securities of such
series (i) money in an amount, or (ii) U.S. Government Obligations or Equivalent Government
Securities which through the payment of interest and principal in respect thereof in
accordance with their terms will provide, not later than one day before the due date of any
payment, money in an amount, or (iii) a combination of (i) and (ii), sufficient, in the
opinion (with respect to (ii) and (iii)) of a nationally recognized firm of independent
public accountants expressed in a written certification thereof delivered to the Trustee,
to pay and discharge each installment of principal (including mandatory sinking fund
payments) of, premium, if any, and interest on, the Outstanding Securities of such series
on the dates such installments of interest, premium or principal are due, including upon
redemption; provided, however, that if such U.S. Government Obligations and Equivalent
Government Securities are callable or redeemable at the option of the issuer thereof, the
amount of such money, U.S. Government
Obligations, and/or Equivalent Government Securities deposited with the Trustee must
be sufficient to pay and discharge the entire

33

 

indebtedness referred to above if the issuer of any such U.S. Government Obligations or
Equivalent Government Securities elects to exercise such call or redemption provisions
at any time prior to the Scheduled Maturity Date or Redemption Date of such Securities,
as the case may be. The Company, but not the Trustee, shall be responsible for
monitoring any such call or redemption provision.

     (b) in the case of Defeasance under Section 4.02, the Company has delivered to the
Trustee an Opinion of Counsel based on the fact that (x) the Company has received from, or
there has been published by, the Internal Revenue Service a ruling or (y) since the date
hereof, there has been a change in the applicable United States federal income tax law, in
either case to the effect that, and such opinion shall confirm that, the Holders of the
Securities of such series will not recognize income, gain or loss for federal income tax
purposes as a result of such deposit, Defeasance and discharge and will be subject to
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 deposit, Defeasance and discharge had not occurred;

     (c) in the case of Covenant Defeasance under Section 4.03, the Company has delivered
to the Trustee an Opinion of Counsel to the effect that, and such opinion shall confirm
that, the Holders of the Securities of such series will not recognize income, gain or loss
for federal income tax purposes as a result of such deposit and Covenant Defeasance and
will be subject to 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 deposit and Covenant Defeasance had not
occurred;

     (d) no Event of Default or event which, with notice or lapse of time or both, would
become an Event of Default with respect to the Securities of such series shall have
occurred and be continuing on the date of such deposit, after giving effect to such deposit
or, in the case of a Defeasance under Section 4.02, no Event of Default specified in
Sections 5.01(e) or 5.01(f) shall have occurred, at any time during the period ending on
the 91st day after the date of such deposit or, if longer, ending on the day following the
expiration of the longest preference period applicable to the Company in respect of such
deposit (it being understood that this condition shall not be deemed satisfied until the
expiration of such period);

     (e) such Defeasance or Covenant Defeasance will not cause the Trustee to have a
conflicting interest within the meaning of the TIA, assuming all Securities of a series
were in default within the meaning of the TIA;

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

     (g) such Defeasance or Covenant Defeasance will not result in the trust arising from
such deposit constituting an investment company within the meaning

34

 

of the Investment Company Act of 1940, as amended (the “Investment
Company Act”), unless the trust is registered under the Investment Company Act or exempt
from registration;

     (h) If the Securities of such series are to be redeemed prior to their Stated
Maturity Date (other than from mandatory sinking fund payments or analogous payments),
notice of such redemption shall have been duly given pursuant to this Indenture or
provision therefor satisfactory to the Trustee shall have been made; and

     (i) the Company shall have delivered to the Trustee an Officers’ Certificate and an
Opinion of Counsel, each stating that all conditions precedent provided for herein
relating to such Defeasance or Covenant Defeasance, as the case may be, have been
complied with.

     Section 4.05. Application of Trust Money; Excess Funds. All money and U.S. Government
Obligations or Equivalent Government Securities (including the proceeds thereof) deposited
with the Trustee pursuant to Sections 4.01 or 4.04 hereof shall be held in trust and
applied by it, in accordance with the provisions of this Indenture and of the series of
Securities in respect of which it was deposited, to the payment, either directly or through
any Paying Agent (including the Company acting as its own Paying Agent), as the Trustee may
determine, to the Persons entitled thereto, of the principal, premium, if any, and
interest, if any, for whose payment such money has been deposited with the Trustee; but
such money need not be segregated from other funds except to the extent required by law.

     The Company will pay and indemnify the Trustee against any tax, fee or other charge
imposed on or assessed against the cash or U.S. Government Obligations or Equivalent
Government Securities deposited pursuant to Sections 4.01 or 4.04 hereof or the principal
and interest received in respect thereof other than any such tax, fee or other charge
which by law is for the account of the Holders of the Outstanding Securities.

     Anything in this Article 4 to the contrary notwithstanding, the Trustee shall deliver
or pay to the Company from time to time upon Company Request any money or U.S. Governmental
Obligations or Equivalent Government Securities held by it as provided in Sections 4.01 or
4.04 which, in the opinion of a nationally recognized investment bank, appraisal firm or
firm of a nationally recognized firm of independent public accountants expressed in a
written certification thereof delivered to the Trustee, (which may be the opinion delivered
under Sections 4.01 or 4.04, as applicable), are in excess of the amount thereof that would
then be required to be deposited to effect an equivalent satisfaction and discharge,
Covenant Defeasance or Defeasance of the applicable series.

     Section 4.06. Paying Agent to Repay Moneys Held. Upon the satisfaction and discharge
of this Indenture, all moneys then held by any Paying Agent of the Securities (other than
the Trustee) shall, upon demand of the Company, be repaid

35

 

to it or paid to the Trustee, and thereupon such Paying Agent shall be released from
all further liability with respect to such moneys.

     Section 4.07. Return of Unclaimed Amounts. Any amounts deposited with or paid to the
Trustee or any Paying Agent or then held by the Company, in trust for payment of the
principal of, premium, if any, or interest, if any, on the Securities and not applied but
remaining unclaimed by the Holders of such Securities for two years after the date upon
which the principal of, premium, if any, or interest, if any, on such Securities, as the
case may be, shall have become due and payable, shall be repaid to the Company by the
Trustee on Company Request or (if then held by the Company) shall be discharged from such
trust; and the Holder of any of such Securities shall thereafter look only to the Company
for any payment which such Holder may be entitled to collect (until such time as such
unclaimed amounts shall escheat, if at all, to the State of New York) and all liability of
the Trustee or such Paying Agent with respect to such trust money, and all liability of the
Company as trustee thereof, shall thereupon cease.
Notwithstanding the foregoing, the Trustee or Paying Agent, before being required to make
any such repayment, may at the expense of the Company cause to be published once a week
for two successive weeks (in each case on any day of the week) in a newspaper printed in
the English language and customarily published at least once a day at least five days in
each calendar week and of general circulation in the Borough of Manhattan, in the City and
State of New York, a notice that said amounts have not been so applied and that after a
date named therein any unclaimed balance of said amounts then remaining will be promptly
returned to the Company.

     Section 4.08. Reinstatement. If the Trustee is unable to apply any money in accordance
with Section 4.04(a) by reason of any order or judgment of any court or governmental
authority enjoining, restraining or otherwise prohibiting such application, then the
Company’s obligations under this Indenture and the Securities of such series shall be
revived and reinstated as though no deposit had occurred pursuant to Section 4.04(a) until
such time as the Trustee is permitted to apply all such money in accordance with Section
4.04(a); provided, however, that if the Company makes any payment of principal of (and
premium, if any) or interest on any Security following the reinstatement of its
obligations, the Company shall be subrogated to the rights of the Holders of the Securities
of such series to receive such payment from the money held by the Trustee.

ARTICLE 5

Remedies

     Section 5.01. Events of Default. “Event of Default”, wherever used herein, means
with respect to any series of Securities any one of the following
events (whatever the reason for such Event of Default and whether it shall be
voluntary or involuntary or be effected by operation of law or pursuant to any

36

 

judgment, decree or order of any court or any order, rule or regulation of any
administrative or governmental body), unless such event is either inapplicable to a
particular series or it is specifically deleted or modified in the manner contemplated by
Section 3.01:

     (a) default in the payment of any interest or Additional Interest (as required by the
Registration Rights Agreement) on any Security of such series when it becomes due and
payable, and continuance of such default for a period of 30 days or more; or

     (b) default in the payment of the principal amount of (or premium, if any, on) any
Security of such series as and when the same shall become due, either at Maturity, upon
redemption, by declaration, or otherwise; or

     (c) default in the payment of any sinking or purchase fund or analogous obligation
when the same becomes due by the terms of the Securities of such series and continuance of
such default for a period of 30 days or more; or

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

     (e) the entry of an order for relief against the Company or the Guarantor under the
Federal Bankruptcy Act by a court having jurisdiction in the premises or a decree or order
by a court having jurisdiction in the premises adjudging the Company or the Guarantor a
bankrupt or insolvent under any other applicable Federal or State law, or the entry of a
decree or order approving as properly filed a petition seeking reorganization, arrangement,
adjustment or composition of or in respect of the Company or the Guarantor under the
Federal Bankruptcy Code or any other applicable Federal or State law, or appointing a
receiver, liquidator, assignee, trustee, sequestrator (or other similar official) of the
Company or the Guarantor or of any substantial part of the property of the Company or the
Guarantor, or ordering the winding up or liquidation of its affairs, and the continuance of
any such decree or order unstayed and in effect for a period of 90 consecutive days; or

     (f) the consent by the Company or the Guarantor to the institution of bankruptcy or
insolvency proceedings against it, or the filing by it of a petition or answer or consent
seeking reorganization or relief under the Federal Bankruptcy

37

 

Code or any other applicable Federal or State law, or the consent by it to the filing of
any such petition or to the appointment of a receiver, liquidator, assignee, trustee,
sequestrator (or other similar official) of the Company or the Guarantor or of any
substantial part of the property of the Company or the Guarantor, or the making by it of an
assignment for the benefit of creditors, or the admission by it in writing of its inability
to pay its debts generally as they become due, or the taking of corporate action by the
Company or the Guarantor in furtherance of any such action;

     (g) except as otherwise provided herein, the Guarantee of the Guarantor ceases to be
in full force and effect or is declared to be null and void and unenforceable or the
Guarantee is found to be invalid or the Guarantor denies its liability under the Guarantee
(other than by reason of release of such Guarantee in accordance with the terms of this
Indenture); or

     (h) any other Event of Default provided for with respect to the Securities
of such series in accordance with Section 3.01.

     A default under any indebtedness of the Company other than the Securities will not
constitute an Event of Default under this Indenture, and a default under one series of
Securities will not constitute a default under any other series of Securities.

     The Trustee shall not be charged with Knowledge of any Event of Default or Knowledge
of any cure of any Event of Default unless either (i) a Responsible Oficer of the Trustee
has actual knowledge of such Event of Default or such cure or (ii) written notice of such
Event of Default have been given to a Responsible Officer by the Company, the Guarantor or
any Holder.

     Section 5.02. Acceleration of Maturity; Rescission, and Annulment. If any Event of
Default described in Section 5.01 above (other than Event of Default described in Sections
5.01(e) and 5.01(f)) shall have occurred and be continuing with respect to any series, then
and in each and every such case, unless the principal of all the Securities of such series
shall have already become due and payable, either the Trustee or the Holders of not less
than 25% (or such other percentage provided for in accordance with Section 3.01) in
aggregate principal amount of the Securities of such series then Outstanding hereunder, by
notice in writing to the Company (and to the Trustee if given by Holders), may declare the
principal amount (or, if the Securities of such series are Original Issue Discount
Securities, such portion of the principal amount as may be specified in the terms of that
series) of all the Securities of such series and any and all accrued interest thereon to be
due and payable immediately, and upon any such declaration the same shall become and shall
be immediately due and payable, any provision of this Indenture or the Securities of such
series to the contrary notwithstanding. If an Event of Default specified in Sections
5.01(e) or 5.01(f) occurs, the principal
amount of the Securities of such series and any and all accrued interest thereon shall
immediately become and be due and payable without any declaration or

38

 

other act on the party of the Trustee or any Holder. No declaration of acceleration by the
Trustee with respect to any series of Securities shall constitute a declaration of
acceleration by the Trustee with respect to any other series of Securities, and no
declaration of acceleration by the Holders of at least 25% (or such other percentage
provided for in accordance with Section 3.01) in aggregate principal amount of the
Outstanding Securities of any series shall constitute a declaration of acceleration or
other action by any of the Holders of any other series of Securities, in each case whether
or not the Event of Default on which such declaration is based shall have occurred and be
continuing with respect to more than one series of Securities, and whether or not any
Holders of the Securities of any such affected series shall also be Holders of Securities
of any other such affected series.

     At any time after such a declaration of acceleration has been made with respect to the
Securities of any series and before a judgment or decree for payment of the money due has
been obtained by the Trustee as hereinafter provided in this Article 5, the Holders of not
less than a majority (or such other percentage provided for in accordance with Section
3.01) in aggregate principal amount of the Outstanding Securities of such series, by
written notice to the Company and the Trustee, may rescind and annul such declaration and
its consequences if all Events of Default with respect to such series of Securities, other
than the nonpayment of the principal of the Securities of such series which have become due
solely by such acceleration, have been cured or waived as provided in Section 5.13, if such
cure or waiver does not conflict with any judgment or decree set forth in Sections 5.01(e)
and 5.01(f) and if all sums paid or advanced by the Trustee hereunder and the reasonable
compensation, expenses, disbursements and advances of the Trustee, its agents and counsel
have been paid.

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

     Section 5.03. Collection of Indebtedness and Suits for Enforcement by Trustee.
The Company covenants that if:

     (a) default is made in the payment of any installment of interest on any Security of
any series when such interest becomes due and payable, or

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

     (c) default is made in the payment of any sinking or purchase fund or analogous
obligation when the same becomes due by the terms of the Securities of any series, and

     (d) any such default continues for any period of grace provided in relation to
such default pursuant to Section 5.01,

39

 

then, with respect to the Securities of such series, the Company will, upon demand of the
Trustee, pay to it, for the benefit of the Holder of any such Security (or the Holders of
any such series in the case of clause (c) above), the whole amount then due and payable on
any such Security (or on the Securities of any such series in the case of clause (c) above)
for principal (and premium, if any) and interest, if any, with interest (to the extent that
payment of such interest shall be legally enforceable) upon the overdue principal (and
premium, if any) and upon overdue installments of interest, if any, at such rate or rates
as may be prescribed therefor by the terms of any such Security (or of Securities of any
such series in the case of clause (c) above); and, in addition thereto, such further amount
as shall be sufficient to cover the costs and expenses of collection, including the
reasonable compensation, expenses, disbursements and advances of the Trustee, its agents
and counsel and all other amounts due the Trustee under Section 6.07.

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

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

     Section 5.04. Trustee May File Proofs of Claim. In case of the pendency of any
receivership, insolvency, liquidation, bankruptcy, reorganization, arrangement, adjustment,
composition, or other judicial proceeding relative to the Company or any other obligor upon
the Securities or the property of the Company or of such other obligor or their creditors,
the Trustee (irrespective of whether the principal of the Securities shall then be due and
payable as therein expressed or by declaration or otherwise and irrespective of whether the
Trustee shall have made any demand on the Company for the payment of overdue principal or
interest) shall be entitled and empowered, by intervention in such proceedings or
otherwise,

     (a) to file and prove a claim for the whole amount of principal (or, with respect to
Original Discount Securities, such portion of the principal amount as may be specified in
the terms of such Securities), premium, if any, and interest, if any, owing and unpaid in
respect of the Securities, and to file such other papers or documents as may be necessary
and advisable in order to have the claims of the

40

 

Trustee (including any claim for the reasonable compensation, expenses,
disbursements, and advances of the Trustee, its agents and counsel, and all other
amounts due the Trustee under Section 6.07) and of the Securityholders allowed in such
judicial proceedings, and

     (b) to collect and receive any moneys or other property payable or deliverable on any
such claims and to distribute the same; and any receiver, assignee, trustee, liquidator,
sequestrator (or other similar official) in any such judicial proceeding is hereby
authorized by each Securityholder to make such payments to the Trustee, and in the event
that the Trustee shall consent to the making of such payments directly to the
Securityholders, to pay to the Trustee any amount due to it for the reasonable
compensation, expenses, disbursements and advances of the Trustee, its agents and counsel,
and any other amounts due the Trustee under Section 6.07 hereof.

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

     Section 5.05. Trustee May Enforce Claims Without Possession of
Securities. All rights of action and claims under this Indenture or the Securities of any
series may be prosecuted and enforced by the Trustee without the possession of any of the
Securities of such series or the production thereof in any proceeding relating thereto, and
any such proceeding instituted by the Trustee shall be brought in its own name as trustee
of an express trust, and any recovery of judgment shall, after provision for the payment of
the reasonable compensation, expenses, disbursements and advances of the Trustee, its
agents and counsel, be for the ratable benefit of the Holders of the Securities, of the
series in respect of which such judgment has been recovered.

     Section 5.06. Application of Money Collected. Any money collected by the Trustee with
respect to a series of Securities pursuant to this Article 5 shall be applied in the
following order, at the date or dates fixed by the Trustee and, in case of the
distribution of such money on account of principal, premium, if any, or interest, if any,
upon presentation of the Securities of such series and the notation thereon of the
payment, if only partially paid, and upon surrender thereof, if fully paid:

     First: To the payment of all amounts due the Trustee under Section 6.07 hereof.

     Second: To the payment of the amounts then due and unpaid upon the Securities of
that series for principal, premium, if any, interest, if any, and additional amounts,
if any, in respect of which or for the benefit of which such money has been collected,
ratably, without preference or priority of any kind.

41

 

     Section 5.07. Limitation on Suits. No Holder of any Security of any series shall have
any right to institute any proceeding, judicial or otherwise, with respect to this
Indenture, or for the appointment of a receiver or trustee, or for any other remedy
hereunder, unless:

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

     (b) the Holders of not less than 25% (or such other percentage provided for in
accordance with Section 3.01) in principal amount of the Outstanding Securities of such
series shall have made written request to the Trustee to institute proceedings in respect
of such Event of Default in its own name as Trustee hereunder;

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

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

     (e) no direction inconsistent with such written request has been given to the Trustee
during such 60-day period by the Holders of a majority in principal amount of the
Outstanding Securities of such series; it being understood and intended that no one or more
Holders of Securities of such series shall have any right in any manner whatever by virtue
of, or by availing of, any provision of this Indenture to affect, disturb or prejudice the
rights of any other Holders of Securities of such series, or to obtain or to seek to obtain
priority or preference over any other such Holders or to enforce any right under this
Indenture, except in the manner herein provided and for the equal and proportionate benefit
of all the Holders of all Securities of such series.

     Section 5.08. Unconditional Right of Securityholders to Receive Principal, Premium,
and Interest. Notwithstanding any other provision in this Indenture, the Holder of any
Security shall have the right, which is absolute and unconditional, to receive payment of
the principal, premium, if any, and (subject to Section 3.07) interest, if any, (and
additional amounts, if any) on such Security on or after the respective payment dates
expressed in such Security (or, in the case of redemption or repayment, on the Redemption
Date or Repayment Date, as the case may be) and to institute suit for the enforcement of
any such payment on or after such respective date, and such right shall not be impaired or
affected without the consent of such Holder.

     Section 5.09. Restoration of Rights and Remedies. If the Trustee or any Securityholder
has instituted any proceeding to enforce any right or remedy under this Indenture and such
proceeding has been discontinued or abandoned for any reason, then and in every such case
the Company, the Trustee and Securityholders

42

 

shall, subject to any determination in such proceeding, be restored severally and
respectively to their former positions hereunder, and thereafter all rights and remedies
of the Trustee and the Securityholders shall continue as though no such proceeding had
been instituted.

     Section 5.10. Rights and Remedies Cumulative. No right or remedy herein conferred
upon or reserved to the Trustee or to the Securityholders is intended to be exclusive of
any other right or remedy, and every right or remedy shall, to the extent permitted by
law, be cumulative and in addition to every other right and remedy given hereunder or now
or hereafter existing at law or in equity or otherwise. The assertion or employment of any
right or remedy hereunder, or otherwise, shall not prevent the concurrent assertion or
employment of any other appropriate right or remedy.

     Section 5.11. Delay or Omission Not Waiver. No delay or omission of the Trustee or
of any Holder of any Security to exercise any right or remedy accruing upon any Event of
Default shall impair any such right or remedy or constitute a waiver of any such Event
of Default or an acquiescence therein. Every right and remedy given by this Article 5 or
by law to the Trustee or to the Securityholders may be exercised from time to time, and
as often as may be deemed expedient, by the Trustee or by the Securityholders, as the
case may be.

     Section 5.12. Control by Securityholders. The Holders of a majority in principal
amount of the Outstanding Securities of any series shall have the right to direct the time,
method and place of conducting any proceeding for any remedy available to the Trustee or
exercising any trust or power conferred on the Trustee with respect to the Securities of
such series, provided, that:

     (a) the Trustee shall have the right to decline to follow any such direction if the
Trustee, being advised by counsel, determines that the action so directed may not
lawfully be taken or would conflict with this Indenture or if the Trustee in good faith
shall, by a Responsible Officer, determine that the proceedings so directed would involve
it in personal liability or be unjustly prejudicial to the Holders not taking part in
such direction, and

     (b) the Trustee may take any other action deemed proper by the Trustee which is not
inconsistent with such direction.

     Section 5.13. Waiver of Past Defaults. The Holders of not less than a majority in
principal amount of the Outstanding Securities of any series may, on behalf of the
Holders of all the Securities of such series, waive any past default hereunder with
respect to such series and its consequences, except a default not theretofore cured:

     (a) in the payment of principal, premium, if any, or interest, if any, on any
Security of such series, or in the payment of any sinking or purchase fund or analogous
obligation with respect to the Securities of such series, or

43

 

     (b) in respect of a covenant or provision in this Indenture which, under Article 9
hereof, cannot be modified or amended without the consent of the Holder of each
Outstanding Security of such series.

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

     Section 5.14. Undertaking for Costs. All parties to this Indenture agree, and each
Holder of any Security by his acceptance thereof shall be deemed to have agreed, that any
court may in its discretion require, in any suit for the enforcement of any right or remedy
under this Indenture, or in any suit against the Trustee for any action taken or omitted by
it as Trustee, the filing by any party litigant in such suit of an undertaking to pay the
costs of such suit, and that such court may in its discretion assess reasonable costs,
including reasonable attorneys’ fees, against any party litigant in such suit, having due
regard to the merits and good faith of the claims or defenses made by such party litigant;
but the provisions of this Section 5.14 shall not apply to any suit instituted by the
Trustee, to any suit instituted by any Securityholder or group of Securityholders holding
in the aggregate more than 10% in principal amount of the Outstanding Securities of any
series to which the suit relates, or to any suit instituted by any Securityholder for the
enforcement of the payment of principal, premium, if any, or interest, if any, on any
Security on or after the respective payment dates expressed in such Security (or, in the
case of redemption or repayment, on or after the Redemption Date or Repayment Date).

     Section 5.15. Waiver of Stay or Extension Laws. The Company covenants (to the extent
that it may lawfully do so) that it will not at any time insist upon, or plead, or in any
manner whatsoever claim or take the benefit or advantage of, any stay or extension law
(other than any bankruptcy law) wherever enacted, now or at any time hereafter in force,
which may affect the covenants or the performance of this Indenture; and the Company (to
the extent that it may lawfully do so) hereby expressly waives all benefit or advantage of
any such law, and covenants that it will not hinder, delay or impede the execution of any
power herein granted to the Trustee, but will suffer and permit the execution of every
such power as though no such law had been enacted.

ARTICLE 6

The Trustee

     Section 6.01. Certain Duties and Responsibilities of Trustee. (a) Except during the
continuance of an Event of Default with respect to any series of Securities,

44

 

     (i) the Trustee undertakes to perform such duties and only such duties as are
specifically set forth in this Indenture with respect to the Securities of such
series, and no implied covenants or obligations shall be read into this Indenture
against the Trustee; and

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

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

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

     (i) this Subsection shall not be construed to limit the effect of Subsection
(a) of this Section 6.01;

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

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

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

45

 

     (d) Whether or not therein expressly so provided, every provision of this Indenture
relating to the conduct or affecting the liability of or affording protection to the
Trustee shall be subject to the provisions of this Section 6.01.

     Section 6.02. Notice of Defaults. Within 90 days after the occurrence of any default
hereunder with respect to Securities of any series, the Trustee shall transmit by mail to
all Securityholders of such series, as their names and addresses appear in the Security
Register, notice of such default hereunder known to the Trustee, unless such default shall
have been cured or waived; provided, however, that, except in the case of a default in the
payment of the principal, premium, if any, or interest, if any, on any Security of such
series or in the payment of any sinking or purchase fund installment or analogous
obligation with respect to Securities of such series, the Trustee shall be protected in
withholding such notice if and so long as the board of directors, the executive committee
or a trust committee of directors and/or Responsible Officers of the Trustee in good faith
determine that the withholding of such notice is in the interests of the Securityholders of
such series and; provided, further, that, in the case of any default of the character
specified in Section 5.01(d) with respect to Securities of such series, no such notice to
Securityholders of such series shall be given until at least 60 days after the occurrence
thereof. For the purpose of this Section 6.02, the term “default”, with respect to
Securities of any series, means any event which is, or after notice or lapse of time or
both would become, an Event of Default with respect to Securities of such series.

     Section 6.03. Certain Rights of Trustee. Except as otherwise provided in Section
6.01 above:

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

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

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

     (d) the Trustee may consult with counsel and any Opinion of Counsel shall be a 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;

46

 

     (e) the Trustee shall be under no obligation to exercise any of the rights or powers
vested in it by this Indenture at the request or direction of any of the Securityholders
pursuant to this Indenture, unless such Securityholders shall have offered to the Trustee
reasonable security or indemnity against the costs, expenses and liabilities which might be
incurred by it in compliance with such request or direction;

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

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

     (h) the permissive rights of the Trustee enumerated herein shall not be construed
as duties;

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

     (j) in no event shall the Trustee be liable, directly or indirectly, for any special,
indirect or consequential damages, even if the Trustee has been advised of the possibility
of such damages; and

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

     Section 6.04. Not Responsible for Recitals or Issuance of Securities. The recitals
contained herein and in the Securities, except the certificates of authentication, shall
be taken as the statements of the Company, and the Trustee assumes no responsibility for
their correctness. The Trustee makes no representations as to the validity or sufficiency
of this Indenture or of the Securities or the Guarantee. The Trustee shall not be
accountable for the use or application by the Company of Securities or the proceeds
thereof.

47

 

     Section 6.05. May Hold Securities. The Trustee or any Paying Agent, Security
Registrar, or other agent of the Company, in its individual or any other capacity, may
become the owner or pledgee of Securities and, subject to Sections 6.08 and 6.13 hereof,
may otherwise deal with the Company with the same rights it would have if it were not
Trustee, Paying Agent, Security Registrar, or such other agent.

     Section 6.06. Money Held in Trust. Money held by the Trustee in trust hereunder need
not be segregated from other funds except to the extent required by law. The Trustee shall
be under no liability for interest on any money received by it hereunder except as
otherwise agreed with the Company.

     Section 6.07. Compensation and Reimbursement. The Company covenants and
agrees:

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

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

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

     Without prejudice to any other rights available to the Trustee under applicable
law, when the Trustee incurs expenses or renders services in connection with an Event of
Default specified in Sections 5.01(e) and 5.01(f) above, such expenses (including the
reasonable charges and expenses of its counsel) and compensation for such services are
intended to constitute expenses of administration under any applicable Federal or State
bankruptcy, insolvency, reorganization, or other similar law.

     The Trustee shall have a lien prior to the Securities upon all property and funds
held or collected by it as such for any amount owing to it or any predecessor Trustee
pursuant to this Section 6.07, except with respect to funds held in trust for the benefit
of the Holders of particular Securities.

48

 

     The provisions of this Section 6.07 shall survive the resignation or removal
of the Trustee and the satisfaction and discharge of this Indenture.

     Section 6.08. Disqualification; Conflicting Interests. If the Trustee has or shall
acquire any conflicting interest within the meaning of the Trust Indenture Act, it shall
either eliminate such interest or resign as Trustee with respect to one or more series of
Securities, to the extent and in the manner provided by, and subject to the provisions of,
the Trust Indenture Act and this Indenture.

     Section 6.09. Corporate Trustee Required; Eligibility. There shall at all times be a
Trustee hereunder with respect to each series of Securities that shall be a corporation
organized and doing business under the laws of the United States of America or of any State
or Territory thereof or of the District of Columbia, authorized under such laws to exercise
corporate trust powers, having a combined capital and surplus of at least $50,000,000, and
subject to supervision or examination by Federal or State authority, if there be such a
corporation willing to act as Trustee on customary and usual terms. If such corporation
publishes reports of condition at least annually, pursuant to law or to the requirements of
the aforesaid supervising or examining authority, then for the purposes of this Section
6.09, the combined capital and surplus of such corporation shall be deemed to be its
combined capital and surplus as set forth in its most recent report of condition so
published. If at any time the Trustee with respect to any series of Securities shall cease
to be eligible in accordance with the provisions of this Section 6.09, it shall resign
immediately in the manner and with the effect hereinafter specified in this Article 6.

     Section 6.10. Resignation and Removal; Appointment of Successor.

     (a) No resignation or removal of the Trustee and no appointment of a successor
Trustee pursuant to this Article 6 shall become effective until the acceptance of
appointment by the successor Trustee under Section 6.11.

     (b) The Trustee may resign with respect to any one or more series of Securities at any
time by giving at least 60 days’ written notice thereof to the Company. If an instrument of
acceptance by a successor Trustee shall not have been delivered to the Trustee within 30
days after the giving of such notice of resignation, the resigning Trustee may petition any
court of competent jurisdiction for the appointment of a successor Trustee.

     (c) The Trustee may be removed with respect to any series of Securities at any time
by Act of the Holders of 66 2/3% in principal amount of the Outstanding Securities of that
series, delivered to the Trustee and to the Company.

     (d) If at any time:

     (i) the Trustee shall fail to comply with Section 6.08 above with respect to
any series of Securities after written request therefor by the

49

 

Company or by any Securityholder who has been a bona fide Holder of a Security of
that series for at least six months, or

     (ii) the Trustee shall cease to be eligible under Section 6.09 above with
respect to any series of Securities and shall fail to resign after written request
therefor by the Company or by any such Securityholder, or

     (iii) the Trustee shall become incapable of acting with respect to any series
of Securities, or

     (iv) the Trustee shall be adjudged as bankrupt or insolvent or a receiver of
the Trustee or of its property shall be appointed or any public officer shall take
charge or control of the Trustee or of its property or affairs for the purpose of
rehabilitation, conservation or liquidation, then, in any such case (A) the Company
may remove the Trustee, with respect to the series or, in the case of clause (iv),
with respect to all series, or (B) subject to Section 5.14, any Securityholder who
has been a bona fide Holder of a Security of such series for at least six months
may, on behalf of himself and all others similarly situated, petition any court of
competent jurisdiction for the removal of the Trustee and the appointment of a
successor Trustee with respect to the series or, in the case of clause (iv), with
respect to all series.

     (e) If the Trustee shall resign, be removed or become incapable of acting with respect
to any series of Securities, or if a vacancy shall occur in the office of Trustee with
respect to any series of Securities for any cause, the Company shall promptly appoint a
successor Trustee for that series of Securities. If, within one year after such
resignation, removal or incapacity, or the occurrence of such vacancy, a successor Trustee
with respect to such series of Securities shall be appointed by Act of the Holders of 66
2/3% in principal amount of the Outstanding Securities of such series delivered to the
Company and the retiring Trustee, the successor Trustee so appointed shall, forthwith upon
its acceptance of such appointment, become the successor Trustee with respect to such
series and supersede the successor Trustee appointed by the Company with respect to such
series. If no successor Trustee with respect to such series shall have been so appointed by
the Company or the Securityholders of such series and accepted appointment in the manner
hereinafter provided, any Securityholder who has been bona fide Holder of a Security of
that series for at least six months may, on behalf of himself and all others similarly
situated, petition any court of competent jurisdiction for the appointment of a successor
Trustee with respect to such series.

     (f) The Company shall give notice of each resignation and each removal of the
Trustee with respect to any series and each appointment of a successor Trustee with
respect to any series by mailing written notice of such event by first-class mail,
postage prepaid, to the Holders of Securities of that series as their names and
addresses appear in the Security Register. Each notice

50

 

shall include the name of the successor Trustee and the address of its principal
Corporate Trust Office.

     Section 6.11. Acceptance of Appointment by Successor. Every successor Trustee
appointed hereunder with respect to all series of Securities shall execute, acknowledge
and deliver to the Company and to the predecessor Trustee an instrument accepting such
appointment, and thereupon the resignation or removal of the predecessor Trustee shall
become effective, and such successor Trustee, without any further act, deed or conveyance,
shall become vested with all the rights, powers, trusts and duties of the predecessor
Trustee with respect to any such series; but, on request of the Company or the successor
Trustee, such predecessor Trustee shall, upon payment of its reasonable charges, if any,
execute and deliver an instrument transferring to such successor Trustee all the rights,
powers and trusts of the predecessor Trustee, and shall duly assign, transfer and deliver
to such successor Trustee all property and money held by such predecessor Trustee
hereunder.

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

51

 

     Upon request of any such successor Trustee, the Company shall execute any and all
instruments for more fully and certainly vesting in and confirming to such successor
Trustee all such rights, powers and trusts referred to in the first or second preceding
paragraph, as the case may be.

     No successor Trustee with respect to any series of Securities shall accept its
appointment unless at the time of such acceptance such successor Trustee shall be
qualified and eligible with respect to that series under this Article 6.

     Section 6.12. Merger, Conversion, Consolidation or Succession to Business. Any
corporation into which the Trustee may be merged or converted or with which it may be
consolidated, or any corporation resulting from any merger, conversion or consolidation to
which the Trustee shall be a party, or any corporation succeeding to all or substantially
all of the corporate trust business of the Trustee, shall be the successor of the Trustee
hereunder; provided, that such corporation shall be otherwise qualified and eligible under
this Article 6, without the execution or filing of any paper or any further act on the
part of any of the parties hereto. In case any Securities shall have been authenticated,
but not delivered, by the Trustee then in office, any successor Trustee by merger,
conversion or consolidation to such authenticating Trustee may adopt such authentication
and deliver the Securities so authenticated with the same effect as if such successor
Trustee had itself authenticated such Securities.

     Section 6.13. Preferential Collection of Claims Against Company. If and when the
Trustee shall be or shall become a creditor, of the Company (or of any other obligor upon
the Securities), the Trustee shall be subject to the provisions of the Trust Indenture Act
regarding the collection of claims against the Company (or against any such other obligor,
as the case may be).

     Section 6.14. Appointment of Authenticating Agent. At any time when any of the
Securities remain Outstanding the Trustee, with the approval of the Company, may appoint
an Authenticating Agent or Agents with respect to one or more series of Securities which
shall be authorized to act on behalf of the Trustee to authenticate Securities of such
series issued upon exchange, registration of transfer or partial redemption thereof or
pursuant to Section 3.06, and Securities so authenticated shall be entitled to the
benefits of this Indenture and shall be valid and obligatory for all purposes as if
authenticated by the Trustee hereunder. Wherever reference is made in this Indenture to
the authentication and delivery of Securities by the Trustee or the Trustee’s certificate
of authentication, such reference shall be deemed to include authentication and delivery
on behalf of the Trustee by an Authenticating Agent and a certificate of authentication
executed on behalf of the Trustee by an Authenticating Agent. Each Authenticating Agent
shall be acceptable to the Company and shall at all times be a corporation organized and
doing business under the laws of the United States of America, any State thereof or the
District of Columbia, authorized under such laws to act as an Authenticating Agent, having
a combined capital and surplus of not less than $50,000,000 and, if other than the Company
itself, subject to supervision or

52

 

examination by Federal or State authority. If such Authenticating Agent publishes reports
of condition at least annually, pursuant to law or to the requirements of said supervising
or examining authority, then for the purposes of this Section 6.14, the combined capital
and surplus of such Authenticating Agent shall be deemed to be its combined capital and
surplus as set forth in its most recent report of condition so published. If at any time
an Authenticating Agent shall cease to be eligible in accordance with the provisions of
this Section 6.14, such Authenticating Agent shall resign immediately in the manner and
with the effect specified in this Section 6.14.

     Any corporation into which an Authenticating Agent may be merged or converted or with
which it may be consolidated, or any corporation resulting from any merger, conversion or
consolidation to which such Authenticating Agent shall be a party, or any corporation
succeeding to the corporate agency or corporate trust business of an Authenticating Agent,
shall continue to be an Authenticating Agent; provided, that such corporation shall be
otherwise eligible under this Section 6.14, without the execution or filing of any paper or
any further act on the part of the Trustee or the Authenticating Agent.

     An Authenticating Agent may resign at any time by giving written notice thereof to the
Trustee and, if other than the Company, to the Company. The Trustee may at any time
terminate the agency of an Authenticating Agent by giving written notice thereof to such
Authenticating Agent and, if other than the Company, to the Company. Upon receiving such a
notice of resignation or upon such a termination, or in case at any time such
Authenticating Agent shall cease to be eligible in accordance with the provisions of this
Section 6.14, the Trustee, with the approval of the Company, may appoint a successor
Authenticating Agent which shall be acceptable to the Company and shall mail written notice
of such appointment by first-class mail, postage prepaid, to all Holders of Securities of
the series with respect to which such Authenticating Agent will serve, as their names and
addresses appear in the Security Register. Any successor Authenticating Agent upon
acceptance of its appointment hereunder shall become vested with all the rights, powers and
duties of its predecessor hereunder, with like effect as if originally named as an
Authenticating Agent. No successor Authenticating Agent shall be appointed unless eligible
under the provisions of this Section 6.14.

     The Company agrees to pay to each Authenticating Agent from time to time
reasonable compensation for its services under this Section 6.14.

     If an appointment with respect to one or more series is made pursuant to this
Section 6.14, the Securities of such series may have endorsed thereon, in addition to
the Trustee’s certificate of authentication, an alternate certificate of authentication
in the following form:

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

53

 

	 	 	 	 	 
	 	UNION BANK, N.A., as Trustee

 	 
	 	By:  	 	 
	 	 	As Authenticating Agent       	 
	 	 	 
	 	By:  	
 	 
	 	 	Authorized Signatory 	 
	 	 	 	 
	 

ARTICLE 7

Securityholders’ Lists And Reports By Trustee And Company

     Section 7.01. Company to Furnish Trustee Names and Addresses of
Securityholders. The Company will furnish or cause to be furnished to the Trustee:

     (a) semiannually, not more than 15 days after January 1 and July 1, respectively in
each year, in such form as the Trustee may reasonably require, a list of the names and
addresses of the Holders of Securities of each series as of such date, and

     (b) at such other times as the Trustee may request in writing, within 30 days after
the receipt by the Company of any such request, a list of similar form and content as of
a date not more than 15 days prior to the time such list is furnished; provided, that if
the Trustee shall be the Security Registrar for such series, such list shall not be
required to be furnished.

     Section 7.02. Preservation of Information; Communications to Securityholders. (a) The
Trustee shall preserve, in as current a form as is reasonably practicable, the names and
addresses of Holders of Securities contained in the most recent list furnished to the
Trustee as provided in Section 7.01 and the names and addresses of Holders of Securities
received by the Trustee in its capacity as Security Registrar. The Trustee may destroy any
list furnished to it as provided in Section 7.01 upon receipt of a new list so furnished.

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

54

 

     (i) afford such applicants access to the information preserved at the time
by the Trustee in accordance with Section 7.02(a), or

     (ii) inform such applicants as to the approximate number of Holders of
Securities of such series or all Securities, as the case may be, whose names and
addresses appear in the information preserved at the time by the Trustee in
accordance with Section 7.02(a), and as to the approximate cost of mailing to
such Securityholders the form of proxy or other communication, if any, specified
in such application.

     If the Trustee shall elect not to afford such applicants access to such information,
the Trustee shall, upon the written request of such applicants, mail to each Holder of a
Security of such series or to all Securityholders, as the case may be, whose names and
addresses appear in the information preserved at the time by the Trustee in accordance
with Section 7.02(a), a copy of the form of proxy or other communication which is
specified in such request, with reasonable promptness after a tender to the Trustee of the
material to be mailed and of payment, or provision for the payment, of the reasonable
expenses of mailing, unless within five days after such tender, the Trustee shall mail to
such applicants and file with the Commission, together with a copy of the material to be
mailed, a written statement to the effect that, in the opinion of the Trustee, such
mailing would be contrary to the best interests of the Holders of Securities of such
series or all Securityholders, as the case may be, or would be in violation of applicable
law. Such written statement shall specify the basis of such opinion. If the Commission,
after opportunity for a hearing upon the objections specified in the written statement so
filed, shall enter an order refusing to sustain any of such objections or if, after the
entry of an order sustaining one or more of such objections, the Commission shall find,
after notice and opportunity for hearing, that all the objections so sustained have been
met and shall enter an order so declaring, the Trustee shall mail copies of such material
to all Securityholders of such series or all Securityholders, as the case may be, with
reasonable promptness after the entry of such order and the renewal of such tender;
otherwise the Trustee shall be relieved of any obligation or duty to such applicants
respecting their application.

     (c) Every Holder of Securities, by receiving and holding the same, agrees with the
Company and the Trustee that neither the Company nor the Trustee shall be held
accountable by reason of the disclosure of any such information as to the names and
addresses of the Holders of Securities in accordance with Section 7.02(b), regardless of
the source from which such information was derived, and that the Trustee shall not be
held accountable by reason of mailing any material pursuant to a request made under
Section 7.02(b).

     Section 7.03. Reports by Trustee. (a) The Trustee shall transmit to Holders such
reports concerning the Trustee and its actions under this Indenture as may be required
pursuant to the Trust Indenture Act at the times and in the manner provided pursuant
thereto. If required by Section 313(a) of the Trust

55

 

Indenture Act, the Trustee shall, within 60 days after each May 15 following the
date of this Indenture, deliver to each Holder, as provided in the Trust Indenture Act
Section 313(c), a brief report dated as of such May 15, which complies with the
provisions of such Section 313(a).

     (b) A copy of each such report shall, at the time of such transmission to
Holders, be filed by the Trustee with each stock exchange upon which any
Securities are listed, with the Commission and with the Company as required by
the Trust Indenture Act Section 313(d). The Company will promptly notify the
Trustee when any Securities are listed on any stock exchange.

     Section 7.04. Reports by Company. The Company will:

     (a) file with the Trustee, within 15 days after the Company is required to
file the same with the Commission, copies of the annual reports and of the
information, documents and other reports (or copies of such portions of any of the
foregoing as the Commission may from time to time by rules and regulations
prescribe) which the Company may be required to file with the Commission pursuant
to Section 13 or Section 15(d) of the Exchange Act; or, if the Company is not
required to file information, documents or reports pursuant to either of said
Sections, then it will file with the Trustee and the Commission, in accordance with
rules and regulations prescribed from time to time by the Commission, such of the
supplementary and periodic information, documents and reports which may be required
pursuant to Section 13 of the Exchange Act in respect of a security listed and
registered on a national securities exchange as may be prescribed from time to time
in such rules and regulations;

     (b) file with the Trustee and the Commission, in accordance with rules and
regulations prescribed from time to time by the Commission, such additional
information, documents and reports with respect to compliance by the Company with
the conditions and covenants of this Indenture as may be required from time to time
by such rules and regulations; and

     (c) transmit by mail to all Securityholders, as their names and addresses
appear in the Security Register, within 30 days after the filing thereof with the
Trustee, such summaries of any information, documents and reports required to be
filed by the Company pursuant to paragraphs (a) and (b) of this Section 7.04 as may
be required by rules and regulations prescribed from time to time by the
Commission.

     (d) Delivery of such reports, information and documents to the Trustee is for
informational purposes only and the Trustee’s receipt of such reports 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)

56

 

ARTICLE 8

Consolidation, Merger, Conveyance or Transfer

     Section 8.01. Company May Consolidate, etc., Only on Certain Terms.
The Company shall not consolidate with or merge with or into any other corporation or
convey or transfer all or substantially all of its properties and assets to any Person,
unless:

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

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

     (c) the Company has delivered to the Trustee an Opinion of Counsel as
conclusive evidence stating that any such consolidation, merger, conveyance or
transfer and such supplemental indenture, if any, and any assumption permitted or
required by this Article 8 complies with the provisions of this Article 8. The
Trustee shall be entitled to conclusively rely on and shall accept such Opinion of
Counsel as sufficient evidence of the satisfaction of the conditions precedent set
forth in this clause (c), in which event it shall be conclusive and binding on the
Holders.

     Section 8.02. Successor Corporation Substituted. Upon any consolidation or
merger, or any conveyance, transfer or lease of all or substantially all of the
properties and assets of the Company in accordance with Section 8.01, the successor
corporation formed by such consolidation or into which the Company is merged or the
Person to which such conveyance, transfer or lease is made shall succeed to, and be
substituted for, and may exercise every right and power of, the Company under this
Indenture with the same effect as if such successor corporation had been named as
the Company herein and the Company shall thereupon be released from all obligations
hereunder and under the Securities. Such successor corporation thereupon may cause
to be signed and may issue any or all of the Securities issuable hereunder which
theretofore shall not have been signed by the Company and delivered to the Trustee;
and, upon the order of such successor corporation, instead of the Company, and
subject
to all the terms, conditions and limitations in this Indenture prescribed, the
Trustee shall authenticate and shall deliver any Securities which previously shall
have been

57

 

signed and delivered by the officers of the Company to the Trustee for authentication,
and any Securities which such successor corporation thereafter shall cause to be signed
and delivered to the Trustee for that purpose. All of the Securities so issued shall in
all respects have the same legal rank and benefit under this Indenture as the
Securities theretofore or thereafter issued in accordance with the terms of this
Indenture as though all of such Securities had been issued at the date of the execution
hereof.

     In case of any such consolidation, merger, sale or conveyance such
changes in phraseology and form (but not in substance) may be made in the
Securities thereafter to be issued as may be appropriate.

ARTICLE 9

Supplemental Indentures

     Section 9.01. Supplemental Indentures Without Consent of Securityholders.
Without the consent of the Holders of any Securities, the Company and the Trustee,
at any time and from time to time, may enter into one or more indentures
supplemental hereto (which shall conform to the provisions of the TIA as in force
at the date of execution thereof), in form satisfactory to the Trustee, for any of
the following purposes:

     (a) to evidence the succession of another corporation to the Company, or
successive successions, and the assumption by any such successor of the
covenants, agreements and obligations of the Company pursuant to Article 8
hereof; or

     (b) to add to the covenants of the Company such further covenants, restrictions
or conditions for the protection of the Holders of the Securities of any or all
series as the Company and the Trustee shall consider to be for the protection of the
Holders of the Securities of any or all series or to surrender any right or power
herein conferred upon the Company (and if such covenants or the surrender of such
right or power are to be for the benefit of less than all series of Securities,
stating that such covenants are expressly being included or such surrenders are
expressly being made solely for the benefit of one or more specified series); or

     (c) to cure any ambiguity, to correct or supplement any provision herein which
may be inconsistent with any other provision herein or in any supplemental
indenture, or to make any other provisions with respect to matters or questions
arising under this Indenture that do not adversely affect the interests of the
Holders of Securities of any series in any material respect; or

     (d) to add to this Indenture such provisions as may be expressly permitted
by the TIA, excluding, however, the provisions referred to in
Section 316(a)(2) of the TIA as in effect at the date as of which this
instrument is

58

 

executed or any corresponding provision in any similar federal statute hereafter
enacted; or

     (e) to add guarantors or co-obligors with respect to any series of
Securities; or

     (f) to secure any series of Securities; or

     (g) to establish any form of Security, as provided in Article 2 hereof, and to
provide for the issuance of any series of Securities, as provided in Article 3
hereof, and to set forth the terms thereof, and/or to add to the rights of the
Holders of the Securities of any series; or

     (h) to evidence and provide for the acceptance of appointment by another
corporation as a successor Trustee hereunder with respect to one or more series of
Securities 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 Section 6.11 hereof; or

     (i) to add any additional Events of Default in respect of the Securities of
any or all series (and if such additional Events of Default are to be in respect
of less than all series of Securities, stating that such Events of Default are
expressly being included solely for the benefit of one or more specified series);
or

     (j) to comply with the requirements of the Commission in connection with
the qualification of this Indenture under the TIA; or

     (k) to make any change in any series of Securities that does not
adversely affect in any material respect the interests of the Holders of
such Securities.

     Section 9.02. Supplemental Indentures With Consent of Securityholders.
With the consent of the Holders of not less than a majority in principal amount of the
Outstanding Securities of each series affected by such supplemental indenture or
indentures, by Act of said Holders delivered to the Company and the Trustee, the Company
and the Trustee may from time to time and at any time enter into an indenture or
indentures supplemental hereto for the purpose of adding any provisions to or changing in
any manner or eliminating any of the provisions of this Indenture or of any supplemental
indenture or of modifying in any manner the rights of the Holders of the Securities of
each such series under this Indenture; provided, however, that no such supplemental
indenture shall, without the consent of the Holder of each Outstanding Security affected
thereby:

     (a) change the Scheduled Maturity Date or the stated payment date of any
payment of premium or interest payable on any Security, or reduce the principal
amount thereof, or any amount of interest or premium payable thereon, or

59

 

     (b) change the method of computing the amount of principal of any Security or
any interest payable thereon on any date, or change any Place of Payment where, or
the coin or currency in which, any Security or any payment of premium or interest
thereon is payable, or

     (c) impair the right to institute suit for the enforcement of any payment
described in clauses (a) or (b) on or after the same shall become due and payable,
whether at Maturity or, in the case of redemption or repayment, on or after the
Redemption Date or the Repayment Date, as the case may be; or

     (d) change or waive the redemption or repayment provisions of any series;

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

     (f) modify any of the provisions of this Section 9.02 or Sections 5.13 or
10.06, except to increase any such percentage or to provide that certain other
provisions of this Indenture cannot be modified or waived without the consent of
the Holder of each Outstanding Security affected thereby; provided, however, that
this clause shall not be deemed to require the consent of any Holder with respect
to changes in the references to “the Trustee” and concomitant changes in this
Sections 9.02 and Section 10.06, or the deletion of this proviso, in accordance
with the requirements of Sections 6.11 and 9.01(h); or

     (g) adversely affect the ranking or priority of any series;

     (h) release any guarantor or co-obligor from any of its obligations under its
guarantee of the Securities or this Indenture, except in compliance with the terms
of this Indenture;

     (i) modify the terms of the Guarantee in a manner adverse to the
Holders of Securities of a series; or

     (j) waive any Event of Default pursuant to Sections 5.01(a), 5.01(b) or
5.01(c) hereof with respect to such Security.

     A supplemental indenture that changes or eliminates any covenant or other
provision of this Indenture that has expressly been included solely for the benefit
of one or more particular series of Securities, or that 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.

60

 

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

     Section 9.03. Execution of Supplemental Indentures. Upon request of the
Company and upon filing with the Trustee of evidence of an Act of Securityholders
as aforementioned, the Trustee shall join with the Company in the execution of such
supplemental indenture unless such supplemental indenture affects the Trustee’s own
rights, powers, trusts, duties or immunities under this Indenture or otherwise, in
which case the Trustee may in its discretion, but shall not be obligated to, enter
into such supplemental indenture. In executing, or accepting the additional trusts
created by, any supplemental indenture permitted by this Article 9 or the
modifications thereby of the trusts created by this Indenture, the Trustee shall be
entitled to receive, and (subject to Section 6.01) shall be fully protected in
relying upon, an Opinion of Counsel stating that the execution of such supplemental
indenture is authorized or permitted by this Indenture.

     Section 9.04. Effect of Supplemental Indentures. Upon the execution of any
supplemental indenture under this Article 9, this Indenture shall be and be deemed
to be modified and amended in accordance therewith, and such supplemental indenture
shall form a part of this Indenture for all purposes; and the respective rights,
limitation of rights, duties, powers, trusts and immunities under this Indenture of
the Trustee, the Company, and every Holder of Securities theretofore or thereafter
authenticated and delivered hereunder shall be determined, exercised and enforced
thereunder to the extent provided therein.

     Section 9.05. Conformity With the Trust Indenture Act. Every
supplemental indenture executed pursuant to this Article 9 shall conform to the
requirements of the TIA as then in effect.

     Section 9.06. Reference in Securities to Supplemental Indentures.
Securities of any series authenticated and delivered after the execution of any
supplemental indenture pursuant to this Article 9 may, and shall if required by the
Trustee, bear a notation in form approved by the Trustee as to any matter provided for in
such supplemental indenture. If the Company shall so determine, new Securities so modified
as to conform, in the opinion of the Trustee and the Company, to any modification of this
Indenture contained in any such supplemental indenture may be prepared and executed by the
Company and authenticated and delivered by the Trustee in exchange for Outstanding
Securities.

61

 

ARTICLE 10

Covenants

     Section 10.01. Payment of Principal, Premium and Interest. With respect to
each series of Securities, the Company will duly and punctually pay or cause to be
paid the principal, premium, if any, and interest, if any, on such Securities in
accordance with their terms and this Indenture, and will duly comply with all the
other terms, agreements and conditions contained in the Indenture for the benefit
of the Securities of such series. The Company shall pay all Additional Interest,
if any, in the same manner and on the same dates as interest at the stated rate in
the Securities and in the amounts set forth in the Registration Rights Agreement.

     Section 10.02. Maintenance of Office or Agency. So long as any of the
Securities remain outstanding, the Company will maintain an office or agency in
each Place of Payment where Securities may be presented or surrendered for
payment, where Securities may be surrendered for registration of transfer or
exchange, and where notices and demands to or upon the Company in respect of the
Securities and this Indenture may be served. The Company will give prompt written
notice to the Trustee of the location, and of any change in the location, of such
office or agency. If at any time the Company shall fail to maintain such 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, and the Company hereby appoints the
Trustee and its agent to receive all such presentations, surrenders, notices and
demands.

     Section 10.03. Money or Security Payments to Be Held in Trust. If the
Company shall at any time act as its own Paying Agent for any series of
Securities, it will, on or before each due date of the principal, premium, if any,
or interest, if any, on any of the Securities of such series, segregate and hold
in trust for the benefit of the Holders of the Securities of such series a sum
sufficient to pay such principal, premium, or interest so becoming due until such
sums shall be paid to such Holders of such Securities or otherwise disposed of as
herein provided, and will promptly notify the Trustee of its action or failure so
to act.

     Whenever the Company shall have one or more Paying Agents for any series of
Securities, it will, on or prior to each due date of the principal, premium, if
any, or interest, if any, on any Securities of such series, deposit with a Paying
Agent a sum sufficient to pay such principal, premium, or interest so becoming
due, such sum to be held in trust for the benefit of the Holders of the Securities
entitled to the same and (unless such Paying Agent is the Trustee) the Company
will promptly notify the Trustee of its action or failure so to act.

     The Company will cause each Paying Agent other than the Trustee for any series
of Securities to execute and deliver to the Trustee an instrument in which such
Paying Agent shall agree with the Trustee, subject to the provisions of this
Section 10.03, that such Paying Agent will:

62

 

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

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

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

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

     Section 10.04. Certificate to Trustee. The Company will deliver to the
Trustee, within 120 days after the end of each fiscal year of the Company
(beginning in 2012), an Officers’ Certificate, one of whose signatories shall be
the Company’s principal executive, accounting or financial officer, stating that in
the course of the performance by the signers of their duties as officers of the
Company they would normally have knowledge of any default by the Company in the
performance of any of its covenants, conditions or agreements contained herein
(without regard to any period of grace or requirement of notice provided
hereunder), stating whether or not they have knowledge of any such default and, if
so, specifying each such default of which the signers have knowledge and the nature
thereof.

     Section 10.05. Corporate Existence. Subject to Article 8 the Company will
do or cause to be done all things necessary to preserve and keep in full force
and effect its corporate existence.

     Section 10.06. Waiver of Certain Covenants. The Company may omit in respect
of any series of Securities, in any particular instance, to comply with any
covenant or condition set forth in Section 10.07 or 10.08, if before or after the
time for such compliance the Holders of at least a majority in principal amount of
the Securities at the time Outstanding of
such series shall, by Act of such Securityholders, either waive such
compliance in such instance or generally waive compliance with such covenant or
condition; provided, that no waiver by the

63

 

Holders of the Securities of such series shall extend to or affect such covenant or
condition except to the extent so expressly waived, and, until such waiver shall become
effective, the obligations of the Company and the duties of the Trustee in respect of any
such covenant or condition shall remain in full force and effect.

     Section 10.07. Limitation on Liens. Unless otherwise provided in a
particular series of Securities, so long as any of the senior Securities shall be
Outstanding, neither the Company nor any Restricted Subsidiary of the Company will
incur, suffer to exist, or guarantee any Debt, secured by a mortgage, pledge or
lien (a “Lien”) on any Principal Property or on any shares of stock of (or other
interests in) any Restricted Subsidiary of the Company unless the Company or such
first mentioned Restricted Subsidiary secures or the Company causes such Restricted
Subsidiary to secure the senior Securities (and any other Debt of the Company or
such Restricted Subsidiary, at the option of the Company or such Restricted
Subsidiary, as the case may be, not subordinate to the senior Securities), equally
and ratably with (or prior to) such secured Debt, for so long as such secured Debt
shall be so secured. This restriction will not, however, apply to Debt secured by:

     (a) Liens existing prior to the issuance of the applicable senior
Securities hereunder;

     (b) Liens on property of or shares of stock of (or other interests in) or
debt of any Entity existing at the time such Entity becomes a Restricted
Subsidiary of the Company;

     (c) Liens on property of or shares of stock of (or other interests in) or debt
of any Entity existing at the time of acquisition thereof (including acquisition
through merger or consolidation);

     (d) Liens on property of or shares of stock of (or other interests in) or debt
of any Entity securing the payment of all or any part of the purchase price of any
property or shares of stock of (or other interests in) any Entity or the cost of
construction of such property (or additions, repairs, alterations, or improvements
thereto),

     (e) Liens on property of or shares of stock of (or other interests in) or
debt of any Entity securing indebtedness incurred to finance all or any part of
the purchase price of any property or shares of stock of (or other interests in)
any Entity or the cost of construction of such property (or additions, repairs,
alterations or improvements thereto), provided that such Lien and the indebtedness
secured thereby are incurred prior to, at the time of, or within 180 days after
the later of the acquisition, the completion of construction (or addition, repair,
alteration or improvement) or the commencement of full operation of such property
or within 180 days after the acquisition of such shares (or other interests);

64

 

     (f) Liens in favor of the Company or any of its Restricted Subsidiaries;

     (g) Liens in favor of, or required by contracts with, governmental
entities; or

     (h) any extension, renewal, or refunding referred to in any of the
preceding clauses (a) through (g).

     Notwithstanding the foregoing, the Company or any of its Restricted
Subsidiaries may incur, suffer to exist or guarantee any Debt secured by a Lien on
any Principal Property or on any shares of stock of (or other interests in) any
Restricted Subsidiary of the Company if, after giving effect thereto, and together
with the value of Attributable Debt outstanding pursuant to Section 10.08(b), the
aggregate amount of such Debt does not exceed 15% of Consolidated Net Tangible
Assets of the Company.

     The transfer of a Principal Property to an Unrestricted Subsidiary or the
change in designation of a Subsidiary which owns a Principal Property from
Restricted Subsidiary to Unrestricted Subsidiary shall not be restricted except
as set forth herein.

     Section 10.08. Limitation on Sale and Lease-Back Transactions. (a) The
Company will not, and will not permit any of its Restricted Subsidiaries to, sell
or transfer, directly or indirectly, except to the Company or a Restricted
Subsidiary of the Company, any Principal Property as an entirety, or any
substantial portion thereof, with the intention of taking back a lease of all or
substantial part of such property, except a lease for a period of three years or
less at the end of which it is intended that the use of such property by the lessee
will be discontinued; provided; that, notwithstanding the foregoing, the Company or
any of its Restricted Subsidiaries may sell a Principal Property (as such term is
defined with respect to the Company) and lease it back for a period longer than
three years (i) if the Company or such Restricted Subsidiary would be entitled,
pursuant to Section 10.07, to create a Lien on the property to be leased securing
Debt in an amount equal to the Attributable Debt with respect to the sale and
lease-back transaction without equally and ratably securing the Outstanding
Securities or (ii) if (A) the net proceeds of such sale and lease-back transactions
are at least equal to the fair value (as determined by a Board Resolution) of such
property and (B) the Company causes an amount equal to the net proceeds of such
sale and lease-back transactions to be applied within 180 days of such sale and
lease-back transaction to any (or a combination) of (i) the prepayment or
retirement of the Outstanding Securities, (ii) the prepayment or retirement (other
than any mandatory retirement, mandatory prepayment or sinking fund payment or by
payment at maturity) of other Debt of the Company or its Restricted Subsidiaries
(other than Debt that is subordinated to the Outstanding Securities or Debt owed to
the Company or one of its Restricted Subsidiaries) that matures more than 12 months
after its creation or matures less than 12 months after its creation but by its
terms being renewable or extendible, at the option of the obligor in respect

65

 

thereof, beyond 12 months from its creation or (iii) the purchase, construction,
development, expansion or improvement of other comparable property.

     (b) Notwithstanding Section 10.08(a), the Company or any Restricted Subsidiary
of the Company may enter into sale and lease-back transactions in addition to those
permitted by Section 10.08(a), and without any obligation to retire any outstanding
Debt or to any purchase property or assets; provided, that at the time of entering
into such sale and lease-back transactions and after giving effect thereto, the
Attributable Debt with respect to such transaction, together with all Debt
outstanding pursuant to the second paragraph of Section 10.07, without duplication,
does not exceed 15% of Consolidated Net Tangible Assets of the Company.

ARTICLE 11

Redemption of Securities

     Section 11.01. Applicability of Article. The Company may reserve the right
to redeem and pay before the Scheduled Maturity Date all or any part of the
Securities of any series, either by optional redemption, sinking or purchase fund
or analogous obligation or otherwise, by provision therefor in the form of Security
for such series established and approved pursuant to Sections 2.02 and 2.03 or as
otherwise provided in Section 3.01, and on such terms as are specified in such form
or in the indenture supplemental hereto with respect to Securities of such series
as provided in Section 3.01. Redemption of Securities of any series shall be made
in accordance with the terms of such Securities and, to the extent that this
Article 11 does not conflict with such terms, the succeeding Sections of this
Article 11.

     Section 11.02. Election to Redeem; Notice to Trustee. In case of any
redemption at the election of the Company, the Company shall, at least 60 days
prior to the Redemption Date fixed by the Company (unless a shorter notice shall
be satisfactory to the Trustee) notify the Trustee of such Redemption Date and of
the principal amount of Securities of such series to be redeemed. In the case of
any redemption of Securities (a) prior to the expiration of any restriction on
such redemption provided in the terms of such Securities or elsewhere in this
Indenture, or (b) pursuant to an election of the Company which is subject to a
condition specified in the terms of such Securities or elsewhere in this
Indenture, the Company shall furnish the Trustee with an Officers’ Certificate
evidencing compliance with such restriction or condition.

     Section 11.03. Selection by Trustee of Securities to be Redeemed. If fewer
than all the Securities of any series are to be redeemed, the particular Securities
to be redeemed shall be selected not more than 60 days prior to the Redemption Date
by the Trustee, from the Outstanding Securities of such series not previously
called for redemption, by such method as the Trustee shall deem fair and
appropriate, which may include provision for the selection for redemption

66

 

of portions of the principal of Securities of such series of a denomination larger than
the minimum authorized denomination for Securities of that series. Unless otherwise
provided in the terms of a particular series of Securities, the portions of the principal
of Securities so selected for partial redemption shall be equal to the minimum authorized
denomination of the Securities of such series, or an integral multiple thereof, and the
principal amount which remains outstanding shall not be less than the minimum authorized
denomination for Securities of such series.

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

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

     Section 11.04. Notice of Redemption. Notice of redemption shall be given by
first-class mail, postage prepaid, mailed not fewer than 30 nor more than 60 days
prior to the Redemption Date, to each Holder of Securities to be redeemed, at his
or her address appearing in the Security Register on the applicable Record Date.

     All notices of redemption shall state:

     (1) the Redemption Date;

     (2) the Redemption Price, or if not then ascertainable, the manner of
calculation thereof;

     (3) if fewer than all Outstanding Securities of any series are to be
redeemed, the identification (and, in the case of partial redemption, the
respective principal amounts) of the Securities to be redeemed, from the Holder to
whom the notice is given and that on and after the date fixed for redemption, upon
surrender of such Security, a new Security or Securities of the same series in the
aggregate principal amount equal to the unredeemed portion thereof will be issued
in accordance with Section 11.07;

     (4) that on the Redemption Date the Redemption Price will become due and
payable upon each such Security, and that unless the Company defaults in payment of
the Redemption Price, interest, if any, thereon shall cease to accrue from and
after said date;

     (5) the place where such Securities are to be surrendered for payment of the
Redemption Price, which shall be the office or agency maintained by the Company
in the Place of Payment pursuant to Section 10.02 hereof;

67

 

     (6) that the redemption is on account of a sinking or purchase fund, or other
analogous obligation, if that be the case; and

     (7) the CUSIP number, if any, printed on the Securities redeemed.

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

     Section 11.05. Deposit of Redemption Price. On or prior to any Redemption
Date, the Company shall deposit with the Trustee or with a Paying Agent (or, if
the Company is acting as its own Paying Agent, segregate and hold in trust as
provided in Section 10.03) an amount of money sufficient to pay the Redemption
Price of all the Securities which are to be redeemed on that date.

     Section 11.06. Securities Payable on Redemption Date. Notice of Redemption
having been given as aforesaid, the Securities to be redeemed shall, on the
Redemption Date, become due and payable at the Redemption Price therein specified
and from and after such date (unless the Company shall default in the payment of
the Redemption Price) such Securities shall cease to bear interest. Upon surrender
of such Securities for redemption in accordance with the notice, such Securities
shall be paid by the Company at the Redemption Price. Any installment of interest
due and payable on or prior to the Redemption Date shall be payable to the Holders
of such Securities registered as such on the relevant Record Date according to the
terms and the provisions of Section 3.07 above; unless, with respect to an Interest
Payment Date that falls on a Redemption Date, such Securities provide that interest
due on such date is to be paid to the Person to whom principal is payable.

     If any Security called for redemption shall not be so paid upon surrender
thereof for redemption, the principal shall, until paid, bear interest from the
Redemption Date at the rate borne by the Security, or as otherwise provided in
such Security.

     Section 11.07. Securities Redeemed in Part. Any Security that is to be
redeemed only in part shall be surrendered at the office or agency maintained by
the Company in the Place of Payment pursuant to Section 10.02 hereof with respect
to that series (with, if the Company or the Trustee so requires, due endorsement
by, or a written instrument of transfer in form satisfactory to the Company and the
Trustee duly executed by, the Holder thereof or his attorney duly authorized in
writing) and the Company shall execute and the Trustee shall authenticate and
deliver to the Holder of such Security without service charge and at the expense of
the Company, a new Security or Securities of the same series, tenor, terms and
Scheduled Maturity Date, of any authorized denomination as requested by such
Holders in aggregate principal amount equal to and in exchange for the unredeemed
portion of the principal of the Security so surrendered.

68

 

     Section 11.08. Provisions with Respect to any Sinking Funds. Unless the
form or terms of any series of Securities shall provide otherwise, in lieu of
making all or any part of any mandatory sinking fund payment with respect to such
series of Securities in cash, the Company may at its option (a) deliver to the
Trustee for cancellation any Securities of such series theretofore acquired by the
Company, or (b) receive credit for any Securities of such series (not previously
so credited) acquired or redeemed by the Company (other than through operation of
a mandatory sinking fund) and theretofore delivered to the Trustee for
cancellation, and if it does so then: (i) Securities so delivered or credited
shall be credited at the applicable sinking fund Redemption Price with respect to
Securities of such series, and (ii) on or before the 60th day next preceding each
sinking fund Redemption Date with respect to such series of Securities, the
Company will deliver to the Trustee (A) an Officers’ Certificate specifying the
portions of such sinking fund payment to be satisfied by payment of cash and by
the delivery or credit of Securities of such series acquired or redeemed by the
Company, and (B) such Securities, to the extent not previously surrendered. Such
Officers’ Certificate shall also state the basis for any such credit and that the
Securities for which the Company elects to receive credit have not been previously
so credited and were not acquired by the Company through operation of the
mandatory sinking fund, if any, provided with respect to such Securities and shall
also state that no Event of Default with respect to Securities of such series has
occurred and is continuing. All Securities so delivered to the Trustee shall be
canceled by the Trustee and no Securities shall be authenticated in lieu thereof.

     If the sinking fund payment or payments (mandatory or optional) with respect
to any series of Securities made in cash plus any unused balance of any preceding
sinking fund payments with respect to Securities of such series made in cash shall
exceed $50,000 (or a lesser sum if the Company shall so request), unless otherwise
provided by the terms of such series of Securities, that cash shall be applied by
the Trustee on the sinking fund Redemption Date with respect to Securities of such
series next following the date of such payment to the redemption of Securities of
such series at the applicable sinking fund Redemption Price with respect to
Securities of such series, together with accrued interest, if any, to the date
fixed for redemption, with the effect provided in Section 11.06. The Trustee shall
select, in the manner provided in Section 11.03, for redemption on such sinking
fund Redemption Date a sufficient principal amount of Securities of such series to
utilize that cash and shall thereupon cause notice of redemption of the Securities
of such series for the sinking fund to be given in the manner provided in Section
11.04 (and with the effect provided in Section 11.06) for the redemption of
Securities in part at the option of the Company. Any sinking fund moneys not so
applied or allocated by the Trustee to the redemption of Securities of such series
shall be added to the next cash sinking fund payment with respect to Securities of
such series received by the Trustee and, together with such payment, shall be
applied in accordance with the provisions of this Section 11.08. Any and all
sinking fund moneys with respect to Securities of any series held by

69

 

the Trustee at the Maturity of Securities of such series, and not held for the payment or
redemption of particular Securities of such series, shall be applied by the Trustee,
together with other moneys, if necessary, to be deposited sufficient for the purpose, to
the payment of the principal of the Securities of such series at Maturity.

     On or before each sinking fund Redemption Date provided with respect to
Securities of any series, the Company shall pay to the Trustee in cash a sum equal
to all accrued interest, if any, to the date fixed for redemption on Securities to
be redeemed on such sinking fund Redemption Date pursuant to this Section 11.08.

     The Trustee shall not redeem any Securities with sinking fund moneys or give
any notice of redemption of Securities by operation of the applicable sinking fund
during the continuance of a default in payment of interest on Securities of such
series or of any Event of Default with respect to such series, except that if the
notice of redemption of any Securities shall theretofore have been mailed in
accordance with the provisions hereof, the Trustee shall redeem such Securities if
cash sufficient for that purpose shall be deposited with the Trustee for that
purpose in accordance with the terms of this Article 11. Except as aforesaid, any
moneys in the sinking fund with respect to Securities of any series at the time
when any such default or Event of Default with respect to such series shall occur,
and any moneys thereafter paid into such sinking fund shall, during the
continuance of such default or Event of Default with respect to such series, be
held as security for the payment of all Securities of such series; provided,
however, that in case such default or Event of Default with respect to such series
shall have been cured or waived as provided herein, such moneys shall thereafter
be applied on the next sinking fund payment date on which such moneys may be
applied pursuant to the provisions of this Section 11.08.

ARTICLE 12

Repayment at Option of Holders

     Section 12.01. Applicability of Article. Repayment of Securities of any
series before their Scheduled Maturity Date at the option of Holders thereof shall
be made in accordance with the terms of such Securities and (except as otherwise
specified as contemplated by Section 3.01 for Securities of any series) in
accordance with this Article 12.

     Section 12.02. Repayment of Securities. Securities of any series subject
to repayment in whole or in part at the option of the Holders thereof will,
unless otherwise provided in the terms of such Securities, be repaid at a price
equal to the principal amount thereof, together with interest thereon accrued to
the Repayment Date specified in the terms of such Securities. On or before the
Repayment Date, the Company will deposit with the Trustee or with a Paying Agent
(or, if the Company is acting as its own Paying Agent, segregate and hold

70

 

in trust as provided in Section 10.03) an amount of money sufficient to pay the
Repayment Price of all the Securities which are to be repaid on such date.

     Section 12.03. Exercise of Option. Securities of any series subject to
repayment at the option of the Holders thereof will contain an “Option to Elect
Repayment” form on the reverse of such Securities. To be repaid at the option of
the Holder, any Security so providing for such repayment, with the “Option to
Elect Repayment” form on the reverse of such Security duly completed by the
Holder, must be received by the Company at the Place of Payment therefor
specified in the terms of such Security (or at such other place or places of
which the Company shall from time to time notify the Holders of such Securities)
not earlier than 30 days nor later than 15 days prior to the Repayment Date. If
less than the entire principal amount of such Security is to be repaid in
accordance with the terms of such Security, the principal amount of such Security
to be repaid, in increments of $1,000 unless otherwise specified in the terms of
such Security, and the denomination or denominations of the Security or
Securities to be issued to the Holder for the portion of the principal amount of
such Security surrendered that is not to be repaid must be specified. The
principal amount of any Security providing for repayment at the option of the
Holder thereof may not be repaid in part, if, following such repayment, the
unpaid principal amount of such Security would be less than the minimum
authorized denomination of Securities of the series of which such Security to be
repaid is a part. Except as otherwise may be provided by the terms of any
Security providing for repayment at the option of the Holder thereof, exercise of
the repayment option by the Holder shall be irrevocable unless waived by the
Company.

     Section 12.04. When Securities Presented for Repayment Become Due and
Payable. If Securities of any series providing for repayment at the option of the
Holders thereof shall have been surrendered as provided in this Article 12 and as
provided by the terms of such Securities, such Securities or the portions thereof,
as the case may be, to be repaid shall become due and payable and shall be paid by
the Company on the Repayment Date therein specified, and on and after such
Repayment Date (unless the Company shall default in the payment of such Securities
on such Repayment Date) interest on such Securities or the portions thereof, as
the case may be, shall cease to accrue.

     Section 12.05. Securities Repaid in Part. Upon surrender of any Security
which is to be repaid in part only, the Company shall execute and the Trustee
shall authenticate and deliver to the Holder of such Security, without service
charge and at the expense of the Company, a new Security or Securities of the same
series, tenor, terms and Scheduled Maturity Date, of any authorized denomination
specified by the Holder, in an aggregate principal amount equal to and in exchange
for the portion of the principal of such Security so surrendered which is not to
be repaid.

71

 

ARTICLE 13

Subordination of Subordinated Securities

     Section 13.01. Agreement to Subordinate. The Company covenants and agrees,
and each Holder of any Subordinated Security issued hereunder by his acceptance
thereof, whether upon original issue or upon transfer or assignment, likewise
covenants and agrees, that the principal of (and premium, if any) and interest on
each and all of the Subordinated Securities issued hereunder are hereby expressly
subordinated, to the extent and in the manner hereinafter set forth, in right of
payment to the prior payment in full of all Senior Indebtedness.

     Section 13.02. Payment on Dissolution, Liquidation or Reorganization;
Default on Senior Indebtedness.

     Upon any payment or distribution of assets or securities of the Company of any kind or
character, whether in cash, property or securities, upon any dissolution or winding up or
total or partial liquidation or reorganization of the Company, whether voluntary or
involuntary or in bankruptcy, insolvency, receivership or other similar proceedings, or
upon any assignment for the benefit of creditors or any other marshalling of the assets and
liabilities of the Company or otherwise, all principal of (and premium, if any) and
interest then due upon all Senior Indebtedness shall first be paid in full, or payment
thereof provided for in money or money’s worth, before the Holders of the Subordinated
Securities or the Trustee on their behalf shall be entitled to receive any assets or
securities (other than shares of stock of the Company as reorganized or readjusted or
securities of the Company or any other corporation provided for by a plan of reorganization
or readjustment, junior to, or the payment of which is subordinated at least to the extent
provided in this Article 13 to the payment of, all Senior Indebtedness which may at the
time be outstanding or any securities issued in respect thereof under any such plan of
reorganization or readjustment) in respect of the Subordinated Securities (for principal,
premium or interest). Upon any such dissolution or winding up or liquidation or
reorganization, any payment or distribution of assets or securities of the Company of any
kind or character, whether in cash, property or securities (other than as aforesaid), to
which the Holders of the Subordinated Securities or the Trustee on their behalf would be
entitled, except for the provisions of this Article 13, shall be made by the Company or by
any receiver, trustee in bankruptcy, liquidating trustee, agent or other person making such
payment or distribution, direct to the holders of Senior Indebtedness or their
representatives to the extent necessary to pay all Senior Indebtedness in full, in money or
money’s worth, after giving effect to any concurrent payment or distribution to or for the
holders of Senior Indebtedness. In the event that, notwithstanding the foregoing, the
Trustee or the Holder of any Subordinated Security shall, under the circumstances described
in the two preceding sentences, have received any payment or distribution of assets or
securities of the Company of any kind or character, whether in cash, property or securities
(other than as aforesaid) before all Senior Indebtedness is paid in full or payment thereof
provided for in money or money’s worth, and if such fact shall

72

 

then have been made known to the Trustee or, as the case may be, such Holder, then such
payment or distribution of assets or securities of the Company shall be paid over or
delivered forthwith to the receiver, trustee in bankruptcy, liquidating trustee, agent or
other person making payment or distribution of assets or securities of the Company for
application to the payment of all Senior Indebtedness remaining unpaid, to the extent
necessary to pay all Senior Indebtedness in full, in money or money’s worth, after giving
effect to any concurrent payment or distribution to or for the holders of Senior
Indebtedness.

     Subject to the payment in full of all Senior Indebtedness, the Holders of the
Subordinated Securities (together with the holders of any indebtedness of the Company which
is subordinate in right of payment to the payment in full of all Senior Indebtedness and
which is not subordinate in right of payment to the Subordinated Securities) shall be
subrogated to the rights of the holders of Senior Indebtedness to receive payments or
distribution of assets or securities of the Company applicable to Senior Indebtedness until
the principal of (and premium, if any) and interest on the Senior Indebtedness shall be
paid in full. No such payments or distributions applicable to Senior Indebtedness shall,
as between the Company, its creditors other than the holders of Senior Indebtedness, and
the Holders of the Subordinated Securities, be deemed to be a payment by the Company to or
on account of the Subordinated Securities, it being understood that the provisions of this
Article 13 are and are intended solely for the purpose of defining the relative rights of
the Holders of the Subordinated Securities, on the one hand, and the holders of Senior
Indebtedness, on the other hand. Nothing contained in this Article 13 or elsewhere in this
Indenture or in the Subordinated Securities is intended to or shall impair, as between the
Company and the Holders of Subordinated Securities, the obligation of the Company, which is
unconditional and absolute, to pay to the Holders of the Subordinated Securities the
principal of (and premium, if any) and interest on the Subordinated Securities as and when
the same shall become due and payable in accordance with their terms, or to affect (except
to the extent specifically provided above in this paragraph) the relative rights of the
Holders of the Subordinated Securities and creditors of the Company other than the holders
of Senior Indebtedness. Nothing contained herein shall prevent the Trustee or the Holder of
any Subordinated Security from exercising all remedies otherwise permitted by applicable
law upon default under this Indenture, subject to the rights, if any, under this Article
13, of the holders of Senior Indebtedness in respect of assets or securities of the Company
of any kind or character, whether cash, property or securities, received upon the exercise
of any such remedy.

     Upon any payment or distribution of assets or securities of the Company referred to
in this Article 13, the Trustee and the Holders of the Subordinated Securities shall be
entitled to rely upon any order or decree of a court of competent jurisdiction in which
such dissolution, winding up, liquidation or reorganization proceedings are pending, and
upon a certificate of the receiver, trustee in bankruptcy, liquidating trustee, agent or
other person making any such

73

 

payment or distribution, delivered to the Trustee or to the Holders of the Subordinated
Securities for the purpose of ascertaining the persons entitled to participate in such
distribution, the holders of Senior Indebtedness and other indebtedness of the Company,
the amount thereof or payable thereon, the amount or amounts paid or distributed thereon
and all other facts pertinent thereto or to this Article 13.

     If:

     (i) there shall have occurred a default in the payment on account of the
principal of (or premium, if any) or interest on or other monetary amounts due and
payable on any Senior Indebtedness, or

     (ii) any other default shall have occurred concerning any Senior Indebtedness which
permits the holder or holders thereof to accelerate the maturity of such Senior
Indebtedness following notice, the lapse of time, or both, or

     (iii) during any time Senior Indebtedness is outstanding, the principal of, and
accrued interest on, any series of Subordinated Securities shall have been declared due and
payable upon an Event of Default pursuant to Section 5.02 hereof (and such declaration
shall not have been rescinded or annulled pursuant to this Indenture);

then, unless and until such default shall have been cured or waived or shall have ceased
to exist, or such declaration shall have been waived, rescinded or annulled, no payment
shall be made by the Company on account of the principal (or premium, if any) or interest
on the Subordinated Securities.

     The Trustee shall be entitled to rely on the delivery to it of a written
notice by a Person representing himself to be a holder of Senior Indebtedness (or a
representative of such holder or a trustee under any indenture under which any
instruments evidencing any such Senior Indebtedness may have been issued) to
establish that such notice has been given by a holder of such Senior Indebtedness
or such representative or trustee on behalf of such holder. In the event that the
Trustee determines in good faith that further evidence is required with respect to
the right of any Person as a holder of Senior Indebtedness to participate in any
payment or distribution pursuant to this Article 13, the Trustee may request such
Person to furnish evidence to the reasonable satisfaction of the Trustee as to the
amount of Senior Indebtedness held by such Person, the extent to which such Person
is entitled to participate in such payment or distribution and any other facts
pertinent to the right of such Person under this Article 13, and, if such evidence
is not furnished, the Trustee may defer any payment to such Person pending judicial
determination as to the right of such Person to receive such payment or
distribution.

74

 

     Section 13.03. Payment Prior to Dissolution or Default. Nothing contained
in this Article 13 or elsewhere in this Indenture, or in any of the Subordinated
Securities, shall prevent (a) the Company, at any time except under the conditions
described in Section 13.02 or during the pendency of any dissolution or winding up
or total or partial liquidation or reorganization proceedings therein referred to,
from making payments at any time of principal of (or premium, if any) or interest
on Subordinated Securities or from depositing with the Trustee or any Paying Agent
moneys for such payments, or (b) the application by the Trustee or any Paying
Agent of any moneys deposited with it under this Indenture to the payment of or on
account of the principal of (or premium, if any) or interest on Subordinated
Securities to the Holders entitled thereto if such payment would not have been
prohibited by the provisions of Section 13.02 on the day such moneys were so
deposited.

     Notwithstanding the provisions of Section 13.01 or any other provision of
this Indenture, the Trustee and any Paying Agent shall not be charged with
knowledge of the existence of any Senior Indebtedness, or of the occurrence of any
default with respect to Senior Indebtedness of the character described in Section
13.02, or of any other facts which would prohibit the making of any payment of
moneys to or by the Trustee or such Paying Agent, unless and until the Trustee
shall have received, no later than three Business Days prior to such payment,
written notice thereof from the Company or from a holder of such Senior
Indebtedness and the Trustee shall not be affected by any such notice which may be
received by it on or after such third Business Day.

     Section 13.04. Securityholders Authorize Trustee to Effectuate
Subordination of Securities. Each Holder of Subordinated Securities by his or her
acceptance thereof authorizes and expressly directs the Trustee on his or her behalf to
take such action in accordance with the terms of this Indenture as may be necessary or
appropriate to effectuate the subordination provisions contained in this Article 13 and to
protect the rights of the Holders of Subordinated Securities pursuant to this Indenture,
and appoints the Trustee his or her attorney-in-fact for such purpose.

     Section 13.05. Right of Trustee to Hold Senior Indebtedness. The Trustee
shall be entitled to all of the rights set forth in this Article 13 in respect of
any Senior Indebtedness at any time held by it to the same extent as any other
holder of Senior Indebtedness, and nothing in this Indenture shall be construed to
deprive the Trustee of any of its rights as such holder.

     Section 13.06. Article 13 Not to Prevent Events of Default. The failure to
make a payment on account of principal of, premium, if any, or interest on the
Subordinated Securities by reason of any provision of this Article 13 shall not be
construed as preventing the occurrence of an Event of Default under Section 5.01
or an event which with the giving of notice or lapse of time, or both, would
become an Event of Default or in any way prevent the Holders of Subordinated

75

 

Securities from exercising any right hereunder other than the right to receive
payment on the Subordinated Securities.

     Section 13.07. No Fiduciary Duty of Trustee to Holders of Senior
Indebtedness. The Trustee shall not be deemed to owe any fiduciary duty to the
holders of Senior Indebtedness, and shall not be liable to any such holders (other
than for its willful misconduct, bad faith or negligence) if it shall in good faith
mistakenly pay over or distribute to the Holders of Subordinated Securities or the
Company or any other Person, cash, property or securities to which any holders of
Senior Indebtedness shall be entitled by virtue of this Article 13 or otherwise.
Nothing in this Section 13.07 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 Indebtedness or their representative. Nothing in this Article 13
shall apply to claims of, or payments to, the Trustee under or pursuant to Section
6.07 of the Indenture.

ARTICLE 14

Guarantee of Securities

     Section 14.01. Guarantee. The Guarantor hereby fully and unconditionally
guarantees to each Holder of a Security authenticated and delivered by the Trustee
hereunder, and to the Trustee on behalf of each such Holder, the due and punctual
payment in full of the principal of and premium, if any, and interest on such
Security and all other amounts payable by the Company under the Indenture when and
as the same shall become due and payable, whether at the Stated Maturity, by
declaration of acceleration, call for redemption or otherwise, and interest on the
overdue principal and (to the extent permitted by law) interest, if any, on such
Security (collectively, the “Obligations”), in accordance with the terms of such
Security and this Indenture. If the Company shall fail to pay when due any
Obligations, for whatever reason, the Guarantor shall be obligated to pay in cash
the same promptly. An Event of Default under this Indenture or the Security of any
series shall entitle the Holders of such Securities to accelerate the Obligations
of the Guarantor hereunder in the same manner and to the same extent as the
Obligations of the Company.

     Section 14.02. Waiver. To the fullest extent permitted by applicable law,
the Guarantor hereby waives the benefits of diligence, presentment, demand for
payment, any requirement that the Trustee or any of the Holders exhaust any right
or take any action against the Company or any other Person, filing of claims with
a court in the event of insolvency or bankruptcy of the Company, any right to
require a proceeding first against the Company, protest or notice with respect to
any Security or the indebtedness evidenced thereby and all demands whatsoever, and
covenants that the Guarantee will not be discharged in respect of any Security
except as provided in this Article 14.

76

 

     Section 14.03. Guarantee of Payment. The Guarantee shall constitute a
guarantee of payment when due and not a guarantee of collection. The Guarantor
hereby agrees that, in the event of a default in payment of principal of or
premium, if any, or interest on any Security, whether at its Stated Maturity, by
declaration of acceleration, call for redemption or otherwise, legal proceedings
may be instituted by the Trustee on behalf of, or by, the Holder of such Security,
subject to the terms and conditions set forth in this Indenture, directly against
the Guarantor to enforce the Guarantee without first proceeding against the
Company.

     Section 14.04. No Discharge or Diminishment of Guarantee. Subject to Section
14.09, the obligations of the Guarantor hereunder shall be absolute and
unconditional and not be subject to any reduction, limitation, termination,
impairment or for any reason (other than the payment in full in cash of the
Obligations), including any claim of waiver, release, surrender, alteration or
compromise of any of the Obligations, and shall not be subject to any defense or
setoff, counterclaim, recoupment or termination whatsoever by reason of the
invalidity, illegality or unenforceability of the Securities, this Indenture or the
Obligations or otherwise. Without limiting the generality of the foregoing, the
obligations of the Guarantor hereunder shall not be discharged or impaired or
otherwise affected by the failure of the Trustee or any Holder of the Notes to
assert any claim or demand or to enforce any remedy under this Indenture or any
Security, any other guarantee or any other agreement, by any waiver, modification
or indulgence of any provision thereof, by any default, failure or delay, willful
or otherwise, in the performance of the Obligations or by any other act or omission
or delay to do any other act that may or might in any manner or to any extent vary
the risk of the Guarantor or that would otherwise operate as a discharge of the
Guarantor as a matter of law or equity (other than the payment in full in cash of
all the Obligations); provided, however, that notwithstanding the foregoing, no
such waiver, modification or indulgence shall, without the consent of the
Guarantor, increase the principal amount of such Security, or increase the interest
rate thereon, change any redemption provisions thereof (including any change to
increase any premium payable upon redemption thereof) or change the Stated Maturity
of any payment thereon, or increase the principal amount of any Original Issue
Discount Security that would be due and payable upon a declaration of acceleration
or the maturity thereof pursuant to Section 5.02 of this Indenture.

     Section 14.05. Defenses of Company Waived. To the extent permitted by
applicable law, the Guarantor waives any defense based on or arising out of any
defense of the Company or the unenforceability of the Obligations or any part
thereof from any cause, or the cessation from any cause of the liability of the
Company, other than final payment in full in cash of the Obligations. The Guarantor
waives any defense arising out of any such election even though such election
operates to impair or to extinguish any right of reimbursement or subrogation or
other right or remedy of the Guarantor against the Company or any security.

77

 

     Section 14.06. Continued Effectiveness. Subject to Section 14.09, the
Guarantor further agrees that its Guarantee with respect to any Security hereunder
shall remain in full force and effect and continue to be irrevocable
notwithstanding any petition filed by or against the Company for liquidation or
reorganization, the Company becoming insolvent or making an assignment for the
benefit of creditors or a receiver or trustee being appointed for all or any
significant part of the Company’s assets, and shall, to the fullest extent
permitted by law, continue to be effective or be reinstated, as the case may be, if
at any time payment, or any part thereof, of principal of or interest on any
Obligation is rescinded or must otherwise be restored or returned by the Trustee or
any Holder of any Security, whether as a “voidable preference,” “fraudulent
transfer” upon bankruptcy or reorganization of the Company or otherwise, all as
though such payment or performance had not been made, until the date upon which the
entire Obligation, if any, and interest on such Security has been, or has been
deemed pursuant to the provisions of this Indenture to have been paid in full. In
the event that any payment, or any part thereof, is rescinded, reduced, restored or
returned on any Security, such Security shall, to the fullest extent permitted by
law, be reinstated and deemed paid only by such amount paid and not so rescinded,
reduced, restored or returned.

     Section 14.07. Subrogation. In furtherance of the foregoing and not in
limitation of any other right of the Guarantor by virtue hereof, upon the failure
of the Company to pay any Obligation when and as the same shall become due, the
Guarantor hereby promises to and will, upon receipt of written demand by the
Trustee or any Holder of the Securities of any series, forthwith pay, or cause to
be paid, to the Holders in cash the amount of such unpaid Obligations, and
thereupon the Holders shall, assign (except to the extent that such assignment
would render a Guarantor a “creditor” of the Company within the meaning of Section
547 of Title 11 of the United States Code as now in effect or hereafter amended or
any comparable provision of any successor statute) the amount of the Obligations
owed to it and paid by the Guarantor pursuant to this Guarantee to the Guarantor,
such assignment to be pro rata to the extent the Obligations in question were
discharged by the Guarantor, or make such other disposition thereof as the
Guarantor shall direct (all without recourse to the Holders, and without any
representation or warranty by the Holders). If (a) the Guarantor shall make payment
to the Holders of all or any part of the Obligations and (b) all the Obligations
and all other amounts payable under this Indenture shall be paid in full, the
Trustee will, at the Guarantor’s request, execute and deliver to the Guarantor
appropriate documents, without recourse and without representation or warranty,
necessary to evidence the transfer by subrogation to the Guarantor of an interest
in the Obligations resulting from such payment by the Guarantor.

     Section 14.08. Subordination. Upon payment by the Guarantor of any sums to
the Holders, as provided above, all rights of the Guarantor against the Company,
arising as a result thereof by way of right of subrogation or otherwise, shall in
all respects be subordinated and junior in right of payment to the prior

78

 

payment in full in cash of all the Obligations to the Trustee; provided, however, that
any right of subrogation that the Guarantor may have pursuant to this Indenture is
subject to Section 14.07.

     Section 14.09. Release of Guarantor and Termination of Guarantee. The
Guarantor shall be automatically and unconditionally released and discharged from
all obligations under this Indenture and the Guarantee without any action
required on the part of the Trustee or any Holder upon the occurrence of the
Distribution (so long as the other transactions constituting the Spin-Off have
occurred).

     The Company will deliver a certificate to the Trustee stating that the
Distribution and the transactions constituting the Spin-Off have occurred in
accordance with the agreements related to the Spin-Off as described in the
Offering Memorandum, and the Trustee may conclusively rely on such
certificate.

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

     Section 14.10. Limitation of Guarantors’ Liability. The Guarantor, and by its
acceptance hereof each Holder, hereby confirms that it is the intention of all such
parties that the Guarantee by the Guarantor not constitute a fraudulent transfer or
conveyance for purposes of Title 11 of the United States Code, the Uniform
Fraudulent Conveyance Act, the Uniform Fraudulent Transfer Act or any similar
federal or state law to the extent applicable to the Guarantor. To effectuate the
foregoing intention, the Holders and the Guarantor hereby irrevocably agree that
the obligations of the Guarantor under this Indenture and the Guarantee shall be
limited to the maximum aggregate amount which, after giving effect to all other
contingent and fixed liabilities of the Guarantor, will result in the obligations
of the Guarantor under the Guarantee not constituting such fraudulent transfer or
conveyance.

     The Guarantee is expressly limited so that in no event, including the
acceleration of the Maturity of the Securities, shall the amount paid or agreed to
be paid in respect of interest on the Securities (or fees or other amounts deemed
payment for the use of funds) exceed the maximum permissible amount under
applicable law, as in effect on the date hereof and as subsequently amended or
modified to allow a greater amount of interest (or fees or other amounts deemed
payment for the use of funds) to be paid under the Guarantee. If for any reason the
amount in respect of interest (or fees or other amounts deemed payment for the use
of funds) required by the Guarantee exceeds such maximum permissible amount, the
obligation to pay interest under the Guarantee (or fees or other amounts deemed
payment for the use of funds) shall be automatically reduced to such maximum
permissible amount and any amounts collected by any holder of

79

 

any Security in excess of the permissible amount shall be automatically applied to reduce
the outstanding principal on such Security.

     Section 14.11. No Obligation to Take Action Against the Company. Neither the
Trustee, any Holder nor any other Person shall have any obligation to enforce or
exhaust any rights or remedies or take any other steps under any security for the
Obligations or against the Company or any other Person or any Property of the
Company or any other Person before the Trustee, such Holder or such other Person
is entitled to demand payment and performance by the Guarantor of its liabilities
and obligations under the Guarantee.

     Section 14.12. Execution and Delivery. To evidence the Guarantee set
forth in this Article 14, the Guarantor hereby agrees that this Indenture shall
be executed on behalf of the Guarantor by an Officer of the Guarantor.

     The Guarantor hereby agrees that the Guarantee set forth in this Article
XIV shall remain in full force and effect notwithstanding the absence of the
endorsement of any notation of the Guarantee on any Securities.

     If an Officer whose signature is on this Indenture no longer holds that
office at the time the Trustee authenticates any Security, the Guarantee shall
be valid nevertheless.

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

*   *   *

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

[Signature page follows]

80

 

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

	 	 	 	 	 
	 	EXELIS INC.

 	 
	 	By:  	/s/ Peter Milligan
 	 
	 	 	Name:  	Peter Milligan 	 
	 	 	Title:  	Chief Financial Officer 	 
	 
	 	ITT CORPORATION, as Guarantor

 	 
	 	By:  	/s/ Colleen Ostrowski
 	 
	 	 	Name:  	Colleen Ostrowski 	 
	 	 	Title:  	Vice President and Treasurer 	 
	 
	 	UNION BANK, N.A., as Trustee

 	 
	 	By:  	/s/ Eva Aryeetey
 	 
	 	 	Name:  	Eva Aryeetey  	 
	 	 	Title:  	Vice President 	 

81

 

	 	 	 	 	 

	 	 	 

	State of New York
	 	 
	 

	 	ss.:
	County of
	 	 

     On the 20th day of September 2011 before me personally came Peter
Milligan, to me known, who, proved to me on the basis of satisfactory evidence
that he is the Chief Financial Officer of Exelis Inc., one of the parties
described in and which executed the above instrument; and that he signed his name
thereto by authority of the board of directors of said corporation.

	 	 	 	 	 
	 	 	 
	 	                        /s/ Margaret A. Bersito
 	 
	 	Notary Public 	 
	 
	 	[Notarial Stamp] 	 
	 

[Notarial Seal] 

82

 

	 	 	 

	State of New York
	 	 
	 

	 	ss.:
	County of
	 	 

     On the 20th day of September 2011 before me personally came Colleen
Ostrowski, to me known, who, being by me duly sworn, did depose and say that
he/she resides at 102 Joyce Road, Eastchester, NY 10709; that she is the Vice
President and Treasurer of ITT Corporation, one of the parties described in and
which executed the above instrument; and that she signed his/her name thereto by
authority of the board of directors of said corporation.

	 	 	 	 	 
	 	 	 
	 	/s/ Margaret A. Bersito
 	 
	 	Notary Public 	 
	 
	 	[Notarial Stamp] 	 
	 

[Notarial Seal]

1

 

	 	 	 

	State of New York
	 	 
	 

	 	ss.:
	County of New York
	 	 

     On the 19th day of September 2011 before me personally came Eva
Aryeety to me known, who, being by me duly sworn, did depose and say that he/she
resides at 1251 Avenue of the Americas, 19th Floor, New York, New York
10020; that she is a Vice President of UNION BANK, N.A., one of the parties
described in and which executed the above instrument; and that she signed his/her
name thereto by authority of the board of directors of said corporation.

	 	 	 	 	 
	 	 	 
	 	/s/ Ivy L. Wegener
 	 
	 	Notary Public 	 
	 
	 	[Notarial Stamp] 	 
	 

[Notarial Seal]

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00194-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00194-of-00352.parquet"}]]