Document:

exv4w6

 

EXHIBIT 4.6

INTERSTATE HOTELS & RESORTS, INC.

INDENTURE

Dated as of _________, 200_

[Name of Trustee]

Trustee

 

 

TABLE OF CONTENTS

	 	 	 	 	 
	 	 	Page

	ARTICLE I. DEFINITIONS AND INCORPORATION BY REFERENCE 
	 	 	1	 
	Section 1.1. Definitions
	 	 	1	 
	Section 1.2. Other Definitions
	 	 	5	 
	Section 1.3. Incorporation by Reference of Trust Indenture Act
	 	 	5	 
	Section 1.4. Rules of Construction
	 	 	6	 
	ARTICLE II. THE SECURITIES 
	 	 	6	 
	Section 2.1. Issuable in Series
	 	 	6	 
	Section 2.2. Establishment of Terms of Series of Securities
	 	 	6	 
	Section 2.3. Execution and Authentication
	 	 	9	 
	Section 2.4. Registrar and Paying Agent
	 	 	10	 
	Section 2.5. Paying Agent to Hold Money in Trust
	 	 	10	 
	Section 2.6. Securityholder Lists
	 	 	11	 
	Section 2.7. Transfer and Exchange
	 	 	11	 
	Section 2.8. Mutilated, Destroyed, Lost and Stolen Securities
	 	 	11	 
	Section 2.9. Outstanding Securities
	 	 	12	 
	Section 2.10. Treasury Securities
	 	 	13	 
	Section 2.11. Temporary Securities
	 	 	13	 
	Section 2.12. Cancellation
	 	 	13	 
	Section 2.13. Defaulted Interest
	 	 	13	 
	Section 2.14. Global Securities
	 	 	13	 
	Section 2.15. CUSIP Numbers
	 	 	15	 
	ARTICLE III. REDEMPTION 
	 	 	15	 
	Section 3.1. Notice to Trustee
	 	 	15	 
	Section 3.2. Selection of Securities to be Redeemed
	 	 	15	 
	Section 3.3. Notice of Redemption
	 	 	15	 
	Section 3.4. Effect of Notice of Redemption
	 	 	16	 
	Section 3.5. Deposit of Redemption Price
	 	 	16	 
	Section 3.6. Securities Redeemed in Part
	 	 	16	 
	ARTICLE IV. COVENANTS 
	 	 	17	 
	Section 4.1. Payment of Principal and Interest
	 	 	17	 
	Section 4.2. SEC Reports
	 	 	17	 
	Section 4.3. Compliance Certificate
	 	 	17	 
	Section 4.4. Stay, Extension and Usury Laws
	 	 	17	 
	Section 4.5. Corporate Existence
	 	 	18	 
	Section 4.6. Taxes
	 	 	18	 
	ARTICLE V. SUCCESSORS 
	 	 	18	 
	Section 5.1. When Company May Merge, Etc.
	 	 	18	 
	Section 5.2. Successor Corporation Substituted
	 	 	18	 

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	 	 	Page

	ARTICLE VI. DEFAULTS AND REMEDIES 
	 	 	19	 
	Section 6.1. Events of Default
	 	 	19	 
	Section 6.2. Acceleration of Maturity; Rescission and Annulment
	 	 	20	 
	Section 6.3. Collection of Indebtedness and Suits for Enforcement by Trustee
	 	 	21	 
	Section 6.4. Trustee May File Proofs of Claim
	 	 	22	 
	Section 6.5. Trustee May Enforce Claims Without Possession of Securities
	 	 	23	 
	Section 6.6. Application of Money Collected
	 	 	23	 
	Section 6.7. Limitation on Suits
	 	 	23	 
	Section 6.8. Unconditional Right of Holders to Receive Principal and Interest
	 	 	24	 
	Section 6.9. Restoration of Rights and Remedies
	 	 	24	 
	Section 6.10. Rights and Remedies Cumulative
	 	 	24	 
	Section 6.11. Delay or Omission Not Waiver
	 	 	25	 
	Section 6.12. Control by Holders
	 	 	25	 
	Section 6.13. Waiver of Past Defaults
	 	 	25	 
	Section 6.14. Undertaking for Costs
	 	 	25	 
	ARTICLE VII. TRUSTEE 
	 	 	26	 
	Section 7.1. Duties of Trustee
	 	 	26	 
	Section 7.2. Rights of Trustee
	 	 	27	 
	Section 7.3. Individual Rights of Trustee
	 	 	28	 
	Section 7.4. Trustee’s Disclaimer
	 	 	28	 
	Section 7.5. Notice of Defaults
	 	 	28	 
	Section 7.6. Reports by Trustee to Holders
	 	 	28	 
	Section 7.7. Compensation and Indemnity
	 	 	29	 
	Section 7.8. Replacement of Trustee
	 	 	29	 
	Section 7.9. Successor Trustee by Merger, etc.
	 	 	30	 
	Section 7.10. Eligibility; Disqualification
	 	 	30	 
	Section 7.11. Preferential Collection of Claims Against Company
	 	 	31	 
	ARTICLE VIII. SATISFACTION AND DISCHARGE; DEFEASANCE 
	 	 	31	 
	Section 8.1. Satisfaction and Discharge of Indenture
	 	 	31	 
	Section 8.2. Application of Trust Funds; Indemnification
	 	 	32	 
	Section 8.3. Legal Defeasance of Securities of any Series
	 	 	32	 
	Section 8.4. Covenant Defeasance
	 	 	34	 
	Section 8.5. Repayment to Company
	 	 	35	 
	ARTICLE IX. AMENDMENTS AND WAIVERS 
	 	 	35	 
	Section 9.1. Without Consent of Holders
	 	 	35	 
	Section 9.2. With Consent of Holders
	 	 	36	 
	Section 9.3. Limitations
	 	 	36	 
	Section 9.4. Compliance with Trust Indenture Act
	 	 	37	 
	Section 9.5. Revocation and Effect of Consents
	 	 	37	 
	Section 9.6. Notation on or Exchange of Securities
	 	 	37	 
	Section 9.7. Trustee Protected
	 	 	38	 
	ARTICLE X. MISCELLANEOUS 
	 	 	38	 
	Section 10.1. Trust Indenture Act Controls
	 	 	38	 

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	 	 	Page

	Section 10.2. Notices
	 	 	38	 
	Section 10.3. Communication by Holders with Other Holders
	 	 	39	 
	Section 10.4. Certificate and Opinion as to Conditions Precedent
	 	 	39	 
	Section 10.5. Statements Required in Certificate or Opinion
	 	 	39	 
	Section 10.6. Rules by Trustee and Agents
	 	 	40	 
	Section 10.7. Legal Holidays
	 	 	40	 
	Section 10.8. No Recourse Against Others
	 	 	40	 
	Section 10.9. Counterparts
	 	 	40	 
	Section 10.10. Governing Laws
	 	 	40	 
	Section 10.11. No Adverse Interpretation of Other Agreements
	 	 	41	 
	Section 10.12. Successors
	 	 	41	 
	Section 10.13. Severability
	 	 	41	 
	Section 10.14. Table of Contents, Headings, Etc.
	 	 	41	 
	Section 10.15. Securities in a Foreign Currency or in ECU
	 	 	41	 
	Section 10.16. Judgment Currency
	 	 	42	 
	ARTICLE XI. SINKING FUNDS 
	 	 	42	 
	Section 11.1. Applicability of Article
	 	 	42	 
	Section 11.2. Satisfaction of Sinking Fund Payments with Securities
	 	 	43	 
	Section 11.3. Redemption of Securities for Sinking Fund
	 	 	43	 

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INTERSTATE HOTELS & RESORTS, INC.

Reconciliation and tie between Trust Indenture Act of 1939 and

Indenture, dated as of _________, 200_

	 	 	 
	§ 310(a)(1) 
	 	7.10
	(a)(2) 
	 	7.10
	(a)(3) 
	 	Not Applicable
	(a)(4) 
	 	Not Applicable
	(a)(5) 
	 	7.10
	(b) 
	 	7.10
	§ 311(a) 
	 	7.11
	(b) 
	 	7.11
	(c) 
	 	Not Applicable
	§ 312(a) 
	 	2.6
	(b) 
	 	10.3
	(c) 
	 	10.3
	§ 313(a) 
	 	7.6
	(b)(1) 
	 	7.6
	(b)(2) 
	 	7.6
	(c)(1) 
	 	7.6
	(d) 
	 	7.6
	§ 314(a) 
	 	4.2, 10.5
	(b) 
	 	Not Applicable
	(c)(1) 
	 	10.4
	(c)(2) 
	 	10.4
	(c)(3) 
	 	Not Applicable
	(d) 
	 	Not Applicable
	(e) 
	 	10.5
	(f) 
	 	Not Applicable
	§ 315(a) 
	 	7.1
	(b) 
	 	7.5
	(c) 
	 	7.1
	(d) 
	 	7.1
	(e) 
	 	6.14
	§ 316(a) 
	 	2.10
	(a)(1)(A) 
	 	6.12
	(a)(1)(B) 
	 	6.13
	(b) 
	 	6.8
	§ 317(a)(1) 
	 	6.3
	(a)(2) 
	 	6.4
	(b) 
	 	2.5
	§ 318(a) 
	 	10.1

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

iv

 

          Indenture
dated as of       ,
200      between Interstate Hotels &
Resorts, Inc., a Delaware corporation (“Company”), and [Name of Trustee], a
       (“Trustee”).

          Each party agrees as follows for the benefit of the other party and for
the equal and ratable benefit of the Holders of the Securities issued under
this Indenture.

ARTICLE I.

DEFINITIONS AND INCORPORATION BY REFERENCE

     Section 1.1. Definitions.

          “Additional Amounts” means any additional amounts which are required
hereby or by any Security, under circumstances specified herein or therein, to
be paid by the Company in respect of certain taxes imposed on Holders specified
therein and which are owing to such Holders.

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

          “Agent” means any Registrar, Paying Agent or Service Agent.

          “Authorized Newspaper” means a newspaper in an official language of the
country of publication customarily published at least once a day for at least
five days in each calendar week and of general circulation in the place in
connection with which the term is used. If it shall be impractical in the
opinion of the Trustee to make any publication of any notice required hereby in
an Authorized Newspaper, any publication or other notice in lieu thereof that
is made or given by the Trustee shall constitute a sufficient publication of
such notice.

          “Bearer” means anyone in possession from time to time of a Bearer
Security.

          “Bearer Security” means any Security, including any interest coupon
appertaining thereto, that does not provide for the identification of the
Holder thereof.

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

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

 

 

          “Business Day” means, unless otherwise provided by Board Resolution,
Officers’ Certificate or supplemental indenture hereto for a particular Series,
any day except a Saturday, Sunday or a legal holiday in The City of New York or
the County of Arlington, Virginia, on which banking institutions are authorized
or required by law, regulation or executive order to close.

          “Company” means the party named as such above until a successor replaces
it and thereafter means the successor.

          “Company Order” means a written order signed in the name of the Company by
two Officers, one of whom must be the Company’s principal executive officer,
principal financial officer or principal accounting officer.

          “Company Request” means a written request signed in the name of the
Company by its Chairman of the Board, a President or a Vice President, and by
its Treasurer, an Assistant Treasurer, its Secretary or an Assistant Secretary,
and delivered to the Trustee.

          “Corporate Trust Office” means the office of the Trustee at which at any
particular time its corporate trust business shall be principally administered.

          “Debt” of any person as of any date means, without duplication, all
indebtedness of such person in respect of borrowed money, including all
interest, fees and expenses owed in respect thereto (whether or not the
recourse of the lender is to the whole of the assets of such person or only to
a portion thereof), or evidenced by bonds, notes, debentures or similar
instruments.

          “Default” means any event which is, or after notice or passage of time
would be, an Event of Default.

          “Depository” means, with respect to the Securities of any Series issuable
or issued in whole or in part in the form of one or more Global Securities, the
person designated as Depository for such Series by the Company, which
Depository shall be a clearing agency registered under the Exchange Act; and if
at any time there is more than one such person, “Depository” as used with
respect to the Securities of any Series shall mean the Depository with respect
to the Securities of such Series.

          “Discount Security” means any Security that provides for an amount less
than the stated principal amount thereof to be due and payable upon declaration
of acceleration of the maturity thereof pursuant to Section 6.2.

          “Dollars” means the currency of The United States of America.

          “ECU” means the European Currency Unit as determined by the Commission of
the European Union.

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

2

 

          “Foreign Currency” means any currency or currency unit issued by a
government other than the government of The United States of America.

          “Foreign Government Obligations” means with respect to Securities of any
Series that are denominated in a Foreign Currency, (i) direct obligations of
the government that issued or caused to be issued such currency for the payment
of which obligations its full faith and credit is pledged or (ii) obligations
of a person controlled or supervised by or acting as an agency or
instrumentality of such government the timely payment of which is
unconditionally guaranteed as a full faith and credit obligation by such
government, which, in either case under clauses (i) or (ii), are not callable
or redeemable at the option of the issuer thereof.

          “Global Security” or “Global Securities” means a Security or Securities,
as the case may be, in the form established pursuant to Section 2.2 evidencing
all or part of a Series of Securities, issued to the Depository for such Series
or its nominee, and registered in the name of such Depository or nominee.

          “Holder” or “Securityholder” means a person in whose name a Security is
registered or the holder of a Bearer Security.

          “Indenture” means this Indenture as amended from time to time and shall
include the form and terms of particular Series of Securities established as
contemplated hereunder.

          “interest” with respect to any Discount Security which by its terms bears
interest only after Maturity, means interest payable after Maturity.

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

          “Officer” means the Chairman of the Board, any President, any
Vice-President, the Treasurer, the Secretary, any Assistant Treasurer or any
Assistant Secretary of the Company.

          “Officers’ Certificate” means a certificate signed by two Officers, one of
whom must be the Company’s principal executive officer, principal financial
officer or principal accounting officer.

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

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

          “principal” of a Security means the principal of the Security plus, when
appropriate, the premium, if any, on, and any Additional Amounts in respect of,
the Security.

3

 

          “Responsible Officer” means any officer of the Trustee in its Corporate
Trust Office and also means, with respect to a particular corporate trust
matter, any other officer to whom any corporate trust matter is referred
because of his or her knowledge of and familiarity with a particular subject.

          “SEC” means the Securities and Exchange Commission.

          “Securities” means the debentures, notes or other debt instruments of the
Company of any Series authenticated and delivered under this Indenture.

          “Series” or “Series of Securities” means each series of debentures, notes
or other debt instruments of the Company created pursuant to Sections 2.1 and
2.2 hereof.

          “Significant Subsidiary” means (i) any direct or indirect Subsidiary of
the Company that would be a “significant subsidiary” as defined in Article 1,
Rule 1-02 of Regulation S-X, promulgated pursuant to the Securities Act of
1933, as amended, as such regulation is in effect on the date hereof, or (ii)
any group of direct or indirect Subsidiaries of the Company that, taken
together as a group, would be a “significant subsidiary” as defined in Article
1, Rule 1-02 of Regulation S-X, promulgated pursuant to the Securities Act of
1933, as amended, as such regulation is in effect on the date hereof.

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

          “Subsidiary” of any specified person means any corporation of which at
least a majority of the outstanding stock having by the terms thereof ordinary
voting power for the election of directors of such corporation (irrespective of
whether or not at the time stock of any other class or classes of such
corporation shall have or might have voting power by reason of the happening of
any contingency) is at the time directly or indirectly owned by such person, or
by one or more other Subsidiaries, or by such person and one or more other
Subsidiaries.

          “TIA” means the Trust Indenture Act of 1939 (15 U.S. Code §§ 77aaa-77bbbb)
as in effect on the date of this Indenture; provided, however, that in the
event the Trust Indenture Act of 1939 is amended after such date, “TIA” means,
to the extent required by any such amendment, the Trust Indenture Act as so
amended.

          “Trustee” means the person named as the “Trustee” in the first paragraph
of this instrument until a successor Trustee shall have become such pursuant to
the applicable provisions of this Indenture, and thereafter “Trustee” shall
mean or include each person who is then a Trustee hereunder, and if at any time
there is more than one such person, “Trustee” as used with respect to the
Securities of any Series shall mean the Trustee with respect to Securities of
that Series.

          “U.S. Government Obligations” means securities which are (i) direct
obligations of The United States of America for the payment of which its full
faith and credit is pledged or (ii) obligations of a person controlled or
supervised by and acting as an agency or instrumentality

4

 

of The United States of America the payment of which is unconditionally
guaranteed as a full faith and credit obligation by The United States of
America, and which in the case of (i) and (ii) are not callable or redeemable
at the option of the issuer thereof, and shall also include a depository
receipt issued by a bank or trust company as custodian with respect to any such
U.S. Government Obligation or a specific payment of interest on or principal of
any such U.S. Government Obligation held by such custodian for the account of
the holder of a depository receipt, provided that (except as required by law)
such custodian is not authorized to make any deduction from the amount payable
to the holder of such depository receipt from any amount received by the
custodian in respect of the U.S. Government Obligation evidenced by such
depository receipt.

     Section 1.2. Other Definitions.

	 	 	 	 	 
	 	 	DEFINED IN
	TERM
	 	SECTION

	“Bankruptcy Law”
	 	 	6.1	 
	“Custodian”
	 	 	6.1	 
	“Event of Default”
	 	 	6.1	 
	“Journal”
	 	 	10.15	 
	“Judgment Currency”
	 	 	10.16	 
	“Legal Holiday”
	 	 	10.7	 
	“mandatory sinking fund payment”
	 	 	11.1	 
	“Market Exchange Rate”
	 	 	10.15	 
	“New York Banking Day”
	 	 	10.16	 
	“optional sinking fund payment”
	 	 	11.1	 
	“Paying Agent”
	 	 	2.4	 
	“Registrar”
	 	 	2.4	 
	“Required Currency”
	 	 	10.16	 
	“Service Agent”
	 	 	2.4	 
	“successor person”
	 	 	5.1	 

     Section 1.3. Incorporation by Reference of Trust Indenture Act.

          Whenever this Indenture refers to a provision of the TIA, the provision is
incorporated by reference in and made a part of this Indenture. The following
TIA terms used in this Indenture have the following meanings:

          “Commission” means the SEC.

          “indenture securities” means the Securities.

          “indenture security holder” means a Securityholder.

          “indenture to be qualified” means this Indenture.

          “indenture trustee” or “institutional trustee” means the Trustee.

5

 

	 	 	“obligor” on the indenture securities means the
Company and
any successor obligor upon the Securities.

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

     Section 1.4. Rules of Construction.

   Unless the context otherwise requires:

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

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

   (c) references to “generally accepted accounting principles” shall
mean generally accepted accounting principles in effect as of the time
when and for the period as to which such accounting principles are to be
applied;

   (d) “or” is not exclusive;

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

   (f) provisions apply to successive events and transactions.

ARTICLE II.

THE SECURITIES

     Section 2.1. Issuable in Series.

          The aggregate principal amount of Securities that may be authenticated and
delivered under this Indenture is unlimited. The Securities may be issued in
one or more Series. All Securities of a Series shall be identical except as may
be set forth in a Board Resolution, a supplemental indenture or an Officers’
Certificate detailing the adoption of the terms thereof pursuant to the
authority granted under a Board Resolution. In the case of Securities of a
Series to be issued from time to time, the Board Resolution, Officers’
Certificate or supplemental indenture may provide for the method by which
specified terms (such as interest rate, maturity date, record date or date from
which interest shall accrue) are to be determined. Securities may differ
between Series in respect of any matters, provided that all Series of
Securities shall be equally and ratably entitled to the benefits of the
Indenture.

     Section 2.2. Establishment of Terms of Series of Securities.

          At or prior to the issuance of any Securities within a Series, the
following shall be established (as to the Series generally, in the case of
Subsection 2.2.1 and either as to such Securities within the Series or as to
the Series generally in the case of Subsections 2.2.2 through

6

 

2.2.22) by a Board Resolution, a supplemental indenture or an Officers’
Certificate pursuant to authority granted under a Board Resolution:

          2.2.1. the title of the Series (which shall distinguish the Securities of
that particular Series from the Securities of any other Series);

          2.2.2. the price or prices (expressed as a percentage of the principal
amount thereof) at which the Securities of the Series will be issued;

          2.2.3. any limit upon the aggregate principal amount of the Securities of
the Series which may be authenticated and delivered under this Indenture
(except for Securities authenticated and delivered upon registration of
transfer of, or in exchange for, or in lieu of, other Securities of the Series
pursuant to Section 2.7, 2.8, 2.11, 3.6 or 9.6);

          2.2.4. the date or dates on which the principal of the Securities of the
Series is payable;

          2.2.5. the rate or rates (which may be fixed or variable) per annum or, if
applicable, the method used to determine such rate or rates (including, but not
limited to, any commodity, commodity index, stock exchange index or financial
index) at which the Securities of the Series shall bear interest, if any, the
date or dates from which such interest, if any, shall accrue, the date or dates
on which such interest, if any, shall commence and be payable and any regular
record date for the interest payable on any interest payment date;

          2.2.6. the place or places where the principal of and interest, if any, on
the Securities of the Series shall be payable, or the method of such payment,
if by wire transfer, mail or other means;

          2.2.7. if applicable, the period or periods within which, the price or
prices at which and the terms and conditions upon which the Securities of the
Series may be redeemed, in whole or in part, at the option of the Company;

          2.2.8. the obligation, if any, of the Company to redeem or purchase the
Securities of the Series pursuant to any sinking fund or analogous provisions
or at the option of a Holder thereof and the period or periods within which,
the price or prices at which and the terms and conditions upon which Securities
of the Series shall be redeemed or purchased, in whole or in part, pursuant to
such obligation;

          2.2.9. the dates, if any, on which and the price or prices at which the
Securities of the Series will be repurchased by the Company at the option of
the Holders thereof and other detailed terms and provisions of such repurchase
obligations;

          2.2.10. if other than denominations of $1,000 and any integral multiple
thereof, the denominations in which the Securities of the Series shall be
issuable;

          2.2.11. the forms of the Securities of the Series in bearer or fully
registered form (and, if in fully registered form, whether the Securities will
be issuable as Global Securities);

7

 

          2.2.12. if other than the principal amount thereof, the portion of the
principal amount of the Securities of the Series that shall be payable upon
declaration of acceleration of the maturity thereof pursuant to Section 6.2;

          2.2.13. the currency of denomination of the Securities of the Series,
which may be Dollars or any Foreign Currency, including, but not limited to,
the ECU, and if such currency of denomination is a composite currency other
than the ECU, the agency or organization, if any, responsible for overseeing
such composite currency;

          2.2.14. the designation of the currency, currencies or currency units in
which payment of the principal of and interest, if any, on the Securities of
the Series will be made;

          2.2.15. if payments of principal of or interest, if any, on the Securities
of the Series are to be made in one or more currencies or currency units other
than that or those in which such Securities are denominated, the manner in
which the exchange rate with respect to such payments will be determined;

          2.2.16. the manner in which the amounts of payment of principal of or
interest, if any, on the Securities of the Series will be determined, if such
amounts may be determined by reference to an index based on a currency or
currencies or by reference to a commodity, commodity index, stock exchange
index or financial index;

          2.2.17. the provisions, if any, relating to any security provided for the
Securities of the Series;

          2.2.18. any addition to or change in the Events of Default which applies
to any Securities of the Series and any change in the right of the Trustee or
the requisite Holders of such Securities to declare the principal amount
thereof due and payable pursuant to Section 6.2;

          2.2.19. any addition to or change in the covenants set forth in Articles
IV or V which applies to Securities of the Series;

          2.2.20. any other terms of the Securities of the Series (which terms shall
not be inconsistent with the provisions of this Indenture, except as permitted
by Section 9.1, but which may modify or delete any provision of this Indenture
insofar as it applies to such Series); and

          2.2.21. any depositories, interest rate calculation agents, exchange rate
calculation agents or other agents with respect to Securities of such Series if
other than those appointed herein.

          All Securities of any one Series need not be issued at the same time and
may be issued from time to time, consistent with the terms of this Indenture,
if so provided by or pursuant to the Board Resolution, supplemental indenture
or Officers’ Certificate referred to above, and the authorized principal amount
of any Series may not be increased to provide for issuances of additional
Securities of such Series, unless otherwise provided in such Board Resolution,
supplemental indenture or Officers’ Certificate.

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     Section 2.3. Execution and Authentication.

          Two Officers shall sign the Securities for the Company by manual or
facsimile signature.

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

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

          The Trustee shall at any time, and from time to time, authenticate
Securities for original issue in the principal amount provided in the Board
Resolution, supplemental indenture hereto or Officers’ Certificate, upon
receipt by the Trustee of a Company Order. Such Company Order may authorize
authentication and delivery pursuant to oral or electronic instructions from
the Company or its duly authorized agent or agents, which oral instructions
shall be promptly confirmed in writing. Each Security shall be dated the date
of its authentication unless otherwise provided by a Board Resolution, a
supplemental indenture hereto or an Officers’ Certificate.

          The aggregate principal amount of Securities of any Series outstanding at
any time may not exceed any limit upon the maximum principal amount for such
Series set forth in the Board Resolution, supplemental indenture hereto or
Officers’ Certificate delivered pursuant to Section 2.2, except as provided in
Section 2.8.

          Prior to the issuance of Securities of any Series, the Trustee shall have
received and (subject to Section 7.2) shall be fully protected in relying on:
(a) the Board Resolution, supplemental indenture hereto or Officers’
Certificate establishing the form of the Securities of that Series or of
Securities within that Series and the terms of the Securities of that Series or
of Securities within that Series, (b) an Officers’ Certificate complying with
Section 10.4, and (c) an Opinion of Counsel complying with
Section 10.4.

          The Trustee shall have the right to decline to authenticate and deliver
any Securities of such Series: (a) if the Trustee, being advised by counsel,
determines that such action may not lawfully be taken; or (b) if the Trustee in
good faith by its board of directors or trustees, executive committee or a
trust committee of directors and/or vice-presidents shall determine that such
action would expose the Trustee to personal liability to Holders of any then
outstanding Series of Securities.

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

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     Section 2.4. Registrar and Paying Agent.

          The Company shall maintain, with respect to each Series of Securities, at
the place or places specified with respect to such Series pursuant to Section
2.2, an office or agency where Securities of such Series may be presented or
surrendered for payment (“Paying Agent”), where Securities of such Series may
be surrendered for registration of transfer or exchange (“Registrar”) and where
notices and demands to or upon the Company in respect of the Securities of such
Series and this Indenture may be served (“Service Agent”). The Registrar shall
keep a register with respect to each Series of Securities and to their transfer
and exchange. The Company will give prompt written notice to the Trustee of
the name and address, and any change in the name or address, of each Registrar,
Paying Agent or Service Agent. If at any time the Company shall fail to
maintain any such required Registrar, Paying Agent or Service Agent or shall
fail to furnish the Trustee with the name and 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 as its agent to receive all such presentations, surrenders, notices and
demands.

          The Company may also from time to time designate one or more
co-registrars, additional paying agents or additional service agents and may
from time to time rescind such designations; provided, however, that no such
designation or rescission shall in any manner relieve the Company of its
obligations to maintain a Registrar, Paying Agent and Service Agent in each
place so specified pursuant to Section 2.2 for Securities of any Series for
such purposes. The Company will give prompt written notice to the Trustee of
any such designation or rescission and of any change in the name or address of
any such co-registrar, additional paying agent or additional service agent.
The term “Registrar” includes any co-registrar; the term “Paying Agent”
includes any additional paying agent; and the term “Service Agent” includes any
additional service agent.

          The Company hereby appoints the Trustee the initial Registrar, Paying
Agent and Service Agent for each Series unless another Registrar, Paying Agent
or Service Agent, as the case may be, is appointed prior to the time Securities
of that Series are first issued.

     Section 2.5. Paying Agent to Hold Money in Trust.

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

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     Section 2.6. Securityholder Lists.

          The Trustee shall preserve in as current a form as is reasonably
practicable the most recent list available to it of the names and addresses of
Securityholders of each Series of Securities and shall otherwise comply with
TIA § 312(a). If the Trustee is not the Registrar, the Company shall furnish
to the Trustee at least ten days before each interest payment date and at such
other times as the Trustee may request in writing a list, in such form and as
of such date as the Trustee may reasonably require, of the names and addresses
of Securityholders of each Series of Securities.

     Section 2.7. Transfer and Exchange.

          Where Securities of a Series are presented to the Registrar or a
co-registrar with a request to register a transfer or to exchange them for an
equal principal amount of Securities of the same Series, the Registrar shall
register the transfer or make the exchange if its requirements for such
transactions are met. To permit registrations of transfers and exchanges, the
Trustee shall authenticate Securities at the Registrar’s request. No service
charge shall be made for any registration of transfer or exchange (except as
otherwise expressly permitted herein), but the Company may require payment of a
sum sufficient to cover any transfer tax or similar governmental charge payable
in connection therewith (other than any such transfer tax or similar
governmental charge payable upon exchanges pursuant to Sections 2.11, 3.6 or
9.6).

          Neither the Company nor the Registrar shall be required (a) to issue,
register the transfer of, or exchange Securities of any Series for the period
beginning at the opening of business fifteen days immediately preceding the
mailing of a notice of redemption of Securities of that Series selected for
redemption and ending at the close of business on the day of such mailing, or
(b) to register the transfer of or exchange Securities of any Series selected,
called or being called for redemption as a whole or the portion being redeemed
of any such Securities selected, called or being called for redemption in part.

     Section 2.8. Mutilated, Destroyed, Lost and Stolen Securities.

          If any mutilated Security is surrendered to the Trustee, the Company shall
execute and the Trustee shall authenticate and deliver in exchange therefor a
new Security of the same Series and of like tenor and principal amount and
bearing a number not contemporaneously outstanding.

          If there shall be delivered to the Company and the Trustee (i) evidence to
their satisfaction of the destruction, loss or theft of any Security and (ii)
such security or indemnity as may be required by them to save each of them and
any agent of either 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 shall execute and upon its request the Trustee shall
authenticate and make available for delivery, in lieu of any such destroyed,
lost or stolen Security, a new Security of the same Series and of like tenor
and principal amount and bearing a number not contemporaneously outstanding.

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

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

          Every new Security of any Series issued pursuant to this Section in lieu
of any destroyed, lost or stolen Security shall constitute an original
additional contractual obligation of the Company, whether or not the 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 that Series duly issued hereunder.

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

     Section 2.9. Outstanding Securities.

          The Securities outstanding at any time are all the Securities
authenticated by the Trustee except for those canceled by it, those delivered
to it for cancellation, those reductions in the interest on a Global Security
effected by the Trustee in accordance with the provisions hereof and those
described in this Section as not outstanding.

          If a Security is replaced pursuant to Section 2.8, it ceases to be
outstanding until the Trustee receives proof satisfactory to it that the
replaced Security is held by a bona fide purchaser.

          If the Paying Agent (other than the Company, a Subsidiary or an Affiliate
of any thereof) holds on the Maturity of Securities of a Series money
sufficient to pay such Securities payable on that date, then on and after that
date such Securities of the Series cease to be outstanding and interest on them
ceases to accrue.

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

          In determining whether the Holders of the requisite principal amount of
outstanding Securities have given any request, demand, authorization,
direction, notice, consent or waiver hereunder, the principal amount of a
Discount Security that shall be deemed to be outstanding for such purposes
shall be the amount of the principal thereof that would be due and payable as
of the date of such determination upon a declaration of acceleration of the
Maturity thereof pursuant to Section 6.2.

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     Section 2.10. Treasury Securities.

          In determining whether the Holders of the required principal amount of
Securities of a Series have concurred in any request, demand, authorization,
direction, notice, consent or waiver Securities of a Series owned by the
Company or an Affiliate shall be disregarded, except that for the purposes of
determining whether the Trustee shall be protected in relying on any such
request, demand, authorization, direction, notice, consent or waiver only
Securities of a Series that the Trustee knows are so owned shall be so
disregarded.

     Section 2.11. Temporary Securities.

          Until definitive Securities are ready for delivery, the Company may
prepare and the Trustee shall authenticate temporary Securities upon a Company
Order. Temporary Securities shall be substantially in the form of definitive
Securities but may have variations that the Company considers appropriate for
temporary Securities. Without unreasonable delay, the Company shall prepare
and the Trustee upon request shall authenticate definitive Securities of the
same Series and date of maturity in exchange for temporary Securities. Until
so exchanged, temporary securities shall have the same rights under this
Indenture as the definitive Securities.

     Section 2.12. Cancellation.

          The Company at any time may deliver Securities to the Trustee for
cancellation. The Registrar and the Paying Agent shall forward to the Trustee
any Securities surrendered to them for registration of transfer, exchange or
payment. The Trustee shall cancel all Securities surrendered for transfer,
exchange, payment, replacement or cancellation and shall destroy such canceled
Securities (subject to the record retention requirement of the Exchange Act)
and deliver a certificate of such destruction to the Company, unless the
Company otherwise directs. The Company may not issue new Securities to replace
Securities that it has paid or delivered to the Trustee for cancellation.

     Section 2.13. Defaulted Interest.

          If the Company defaults in a payment of interest on a Series of
Securities, it shall pay the defaulted interest, plus, to the extent permitted
by law, any interest payable on the defaulted interest, to the persons who are
Securityholders of the Series on a subsequent special record date. The Company
shall fix the record date and payment date. At least 30 days before the record
date, the Company shall mail to the Trustee and to each Securityholder of the
Series a notice that states the record date, the payment date and the amount of
interest to be paid. The Company may pay defaulted interest in any other
lawful manner.

     Section 2.14. Global Securities.

          2.14.1. Terms of Securities. A Board Resolution, a supplemental indenture
hereto or an Officers’ Certificate shall establish whether the Securities of a
Series shall be issued in whole or in part in the form of one or more Global
Securities and the Depository for such Global Security or Securities.

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          2.14.2. Transfer and Exchange. Notwithstanding any provisions to the
contrary contained in Section 2.7 of the Indenture and in addition thereto, any
Global Security shall be exchangeable pursuant to Section 2.7 of the Indenture
for Securities registered in the names of Holders other than the Depository for
such Security or its nominee only if (i) such Depository notifies the Company
that it is unwilling or unable to continue as Depository for such Global
Security or if at any time such Depository ceases to be a clearing agency
registered under the Exchange Act, and, in either case, the Company fails to
appoint a successor Depository within 90 days of such event, (ii) the Company
executes and delivers to the Trustee an Officers’ Certificate to the effect
that such Global Security shall be so exchangeable or (iii) an Event of Default
with respect to the Securities represented by such Global Security shall have
happened and be continuing. Any Global Security that is exchangeable pursuant
to the preceding sentence shall be exchangeable for Securities registered in
such names as the Depository shall direct in writing in an aggregate principal
amount equal to the principal amount of the Global Security with like tenor and
terms.

          Except as provided in this Section 2.14.2, a Global Security may not be
transferred except as a whole by the Depository with respect to such Global
Security to a nominee of such Depository, by a nominee of such Depository to
such Depository or another nominee of such Depository or by the Depository or
any such nominee to a successor Depository or a nominee of such a successor
Depository.

          2.14.3. Legend. Any Global Security issued hereunder shall bear a legend
in substantially the following form:

          “This Security is a Global Security within the meaning of the Indenture
hereinafter referred to and is registered in the name of the Depository or a
nominee of the Depository. This Security is exchangeable for Securities
registered in the name of a person other than the Depository or its nominee
only in the limited circumstances described in the Indenture, and may not be
transferred except as a whole by the Depository to a nominee of the Depository,
by a nominee of the Depository to the Depository or another nominee of the
Depository or by the Depository or any such nominee to a successor Depository
or a nominee of such a successor Depository.”

          2.14.4. Acts of Holders. The Depository, as a Holder, may appoint agents
and otherwise authorize participants to give or take any request, demand,
authorization, direction, notice, consent, waiver or other action which a
Holder is entitled to give or take under the Indenture.

          2.14.5. Payments. Notwithstanding the other provisions of this Indenture,
unless otherwise specified as contemplated by Section 2.2, payment of the
principal of and interest, if any, on any Global Security shall be made to the
Holder thereof.

          2.14.6. Consents, Declaration and Directions. Except as provided in
Section 2.14.5, the Company, the Trustee and any Agent shall treat a person as
the Holder of such principal amount of outstanding Securities of such Series
represented by a Global Security as shall be specified in a written statement
of the Depositary with respect to such Global Security,

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for purposes of obtaining any consents, declarations, waivers or
directions required to be given by the Holders pursuant to this Indenture.

     Section 2.15. CUSIP Numbers.

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

ARTICLE III.

REDEMPTION

     Section 3.1. Notice to Trustee.

          The Company may, with respect to any Series of Securities, reserve the
right to redeem and pay the Series of Securities or may covenant to redeem and
pay the Series of Securities or any part thereof prior to the Stated Maturity
thereof at such time and on such terms as provided for in such Securities. If
a Series of Securities is redeemable and the Company wants or is obligated to
redeem prior to the Stated Maturity thereof all or part of the Series of
Securities pursuant to the terms of such Securities, it shall notify the
Trustee of the redemption date and the principal amount of Series of Securities
to be redeemed. The Company shall give the notice at least 45 days before the
redemption date (or such shorter notice as may be acceptable to the Trustee).

     Section 3.2. Selection of Securities to be Redeemed.

          Unless otherwise indicated for a particular Series by a Board Resolution,
a supplemental indenture or an Officers’ Certificate, if less than all the
Securities of a Series are to be redeemed, the Trustee shall select the
Securities of the Series to be redeemed in any manner that the Trustee deems
fair and appropriate. The Trustee shall make the selection from Securities of
the Series outstanding not previously called for redemption. The Trustee may
select for redemption portions of the principal of Securities of the Series
that have denominations larger than $1,000. Securities of the Series and
portions of them it selects shall be in amounts of $1,000 or whole multiples of
$1,000 or, with respect to Securities of any Series issuable in other
denominations pursuant to Section 2.2.10, the minimum principal denomination
for each Series and integral multiples thereof. Provisions of this Indenture
that apply to Securities of a Series called for redemption also apply to
portions of Securities of that Series called for redemption.

     Section 3.3. Notice of Redemption.

          Unless otherwise indicated for a particular Series by Board Resolution, a
supplemental indenture hereto or an Officers’ Certificate, at least 30 days but
not more than 60 days before a redemption date, the Company shall mail a notice
of redemption by first-class mail

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to each Holder whose Securities are to be redeemed and if any Bearer
Securities are outstanding, publish on one occasion a notice in an Authorized
Newspaper.

          The notice shall identify the Securities of the Series to be redeemed and
shall state:

          (a) the redemption date;

          (b) the redemption price;

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

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

          (e) that interest on Securities of the Series called for redemption
ceases to accrue on and after the redemption date; and

          (f) any other information as may be required by the terms of the
particular Series or the Securities of a Series being redeemed.

          At the Company’s request, the Trustee shall give the notice of redemption
in the Company’s name and at its expense.

     Section 3.4. Effect of Notice of Redemption.

          Once notice of redemption is mailed or published as provided in Section
3.3, Securities of a Series called for redemption become due and payable on the
redemption date and at the redemption price. A notice of redemption may not be
conditional. Upon surrender to the Paying Agent, such Securities shall be paid
at the redemption price plus accrued interest to the redemption date.

     Section 3.5. Deposit of Redemption Price.

          On or before the redemption date, the Company shall deposit with the
Paying Agent money sufficient to pay the redemption price of and accrued
interest, if any, on all Securities to be redeemed on that date.

     Section 3.6. Securities Redeemed in Part.

          Upon surrender of a Security that is redeemed in part, the Trustee shall
authenticate for the Holder a new Security of the same Series and the same
maturity equal in principal amount to the unredeemed portion of the Security
surrendered.

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ARTICLE IV.

COVENANTS

     Section 4.1. Payment of Principal and Interest.

          The Company covenants and agrees for the benefit of the Holders of each
Series of Securities that it will duly and punctually pay the principal of and
interest, if any, on the Securities of that Series in accordance with the terms
of such Securities and this Indenture.

     Section 4.2. SEC Reports.

          The
Company shall deliver to the Trustee within 15 days after it files
them with the SEC 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 SEC may by rules and regulations prescribe) which the Company
is required to file with the SEC pursuant to Section 13 or 15(d) of the
Exchange Act. The Company also shall comply with the other provisions of TIA §
314(a).

     Section 4.3. Compliance Certificate.

          The Company shall deliver to the Trustee, within 90 days after the end of
each fiscal year of the Company, an Officers’ Certificate stating that a review
of the activities of the Company and its Subsidiaries during the preceding
fiscal year has been made under the supervision of the signing Officers with a
view to determining whether the Company has kept, observed, performed and
fulfilled its obligations under this Indenture, and further stating, as to each
such Officer signing such certificate, that to the best of his knowledge the
Company has kept, observed, performed and fulfilled each and every covenant
contained in this Indenture and is not in default in the performance or
observance of any of the terms, provisions and conditions hereof (or, if a
Default or Event of Default shall have occurred, describing all such Defaults
or Events of Default of which he may have knowledge).

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

     Section 4.4. Stay, Extension and Usury Laws.

          The
Company covenant (to the extent that it may lawfully do so) that it
will not at any time insist upon, plead, or in any manner whatsoever claim or
take the benefit or advantage of, any stay, extension or usury law wherever
enacted, now or at any time hereafter in force, which may affect the covenants
or the performance of this Indenture or the Securities; and the
Company (to the
extent it may lawfully do so) hereby expressly waives all benefit or advantage
of any such law and covenants that it will not, by resort to any such law,
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 has been enacted.

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     Section 4.5. Corporate Existence.

          Subject to Article V, the Company will do or cause to be done all things
necessary to preserve and keep in full force and effect its corporate existence
and the corporate, partnership or other existence of each Significant
Subsidiary in accordance with the respective organizational documents of each
Significant Subsidiary and the rights (charter and statutory), licenses and
franchises of the Company and its Significant Subsidiaries; provided, however,
that the Company shall not be required to preserve any such right, license or
franchise, or the corporate, partnership or other existence of any Significant
Subsidiary, if the Board of Directors shall determine that the preservation
thereof is no longer desirable in the conduct of the business of the Company
and its Subsidiaries taken as a whole and that the loss thereof is not adverse
in any material respect to the Holders.

     Section 4.6. Taxes.

          The Company shall, and shall cause each of its Significant Subsidiaries
to, pay prior to delinquency all taxes, assessments and governmental levies,
except as contested in good faith and by appropriate proceedings.

ARTICLE V.

SUCCESSORS

     Section 5.1. When Company May Merge, Etc.

          The Company shall not consolidate with or merge into, or convey, transfer
or lease all or substantially all of its properties and assets to, any person
(a “successor person”), and may not permit any person to merge into, or convey,
transfer or lease its properties and assets substantially as an entirety to,
the Company, unless:

          (a) the successor person (if any) is a corporation, partnership,
trust or other entity organized and validly existing under the laws of
any U.S. domestic jurisdiction and expressly assumes the Company’s
obligations on the Securities and under this Indenture and

          (b) immediately after giving effect to the transaction, no Default
or Event of Default, shall have occurred and be continuing.

          The Company shall deliver to the Trustee prior to the consummation of the
proposed transaction an Officers’ Certificate to the foregoing effect and an
Opinion of Counsel stating that the proposed transaction and such supplemental
indenture comply with this Indenture.

     Section 5.2. Successor Corporation Substituted.

          Upon any consolidation or merger, or any sale, lease, conveyance or other
disposition of all or substantially all of the assets of the Company in
accordance with Section 5.1, the successor corporation formed by such
consolidation or into or with which the Company is merged or to which such
sale, lease, conveyance or other disposition is made shall succeed to,

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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 person
has been named as the Company herein; provided, however, that the predecessor
Company in the case of a sale, lease, conveyance or other disposition shall not
be released from the obligation to pay the principal of and interest, if any,
on the Securities.

ARTICLE VI.

DEFAULTS AND REMEDIES

     Section 6.1. Events of Default.

          “Event of Default,” wherever used herein with respect to Securities of any
Series, means any one of the following events, unless in the establishing Board
Resolution, supplemental indenture or Officers’ Certificate, it is provided
that such Series shall not have the benefit of said Event of Default:

   (a) default in the payment of any interest on any Security of that
Series when it becomes due and payable, and continuance of such default
for a period of 30 days (unless the entire amount of such payment is
deposited by the Company with the Trustee or with a Paying Agent prior to
the expiration of such period of 30 days); or

   (b) default in the payment of the principal of any Security of that
Series at its Maturity; or

   (c) default in the deposit of any sinking fund payment, when and as
due in respect of any Security of that Series; or

   (d) default in the performance or breach of any covenant or warranty
of the Company in this Indenture (other than a covenant or warranty that
has been included in this Indenture solely for the benefit of Series of
Securities other than that Series), which default continues uncured for a
period of 60 days after there has been given, by registered or certified
mail, to the Company by the Trustee or to the Company and the Trustee by
the Holders of at least 25% in principal amount of the outstanding
Securities of that 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) a default under any Debt of the Company (including a default
with respect to Securities of any Series other than that Series) or any
Subsidiary, whether such Debt now exists or shall hereafter be created,
if (A) such default results from the failure to pay any such Debt when it
becomes due, (B) the principal amount of such Debt, together with the
principal amount of any other such Debt in default for failure to pay
principal at stated final maturity or the maturity of which has been so
accelerated, aggregates $        or more at any one time
outstanding, and (C) such Debt is not discharged or such acceleration is
not rescinded or annulled within 10 days after written notice to the
Company by the holder or holders of such Debt in the manner provided for
in the applicable debt instrument; or

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   (f) the Company or any of its Significant Subsidiaries pursuant to
or within the meaning of any Bankruptcy Law:

      (i) commences a voluntary case,

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

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

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

      (v) generally is unable to pay its debts as the same become
due; or

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

      (i) is for relief against the Company or any of its
Significant Subsidiaries in an involuntary case,

      (ii) appoints a Custodian of the Company or any of its
Significant Subsidiaries or for all or substantially all of its
property, or

      (iii) orders the liquidation of the Company or any of its
Significant Subsidiaries,

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

   (h) any other Event of Default provided with respect to Securities
of that Series, which is specified in a Board Resolution, a supplemental
indenture hereto or an Officers’ Certificate, in accordance with Section
2.2.18.

          The term “Bankruptcy Law” means title 11, U.S. Code or any similar Federal
or State law for the relief of debtors. The term “Custodian” means any
receiver, trustee, assignee, liquidator or similar official under any
Bankruptcy Law.

     Section 6.2. Acceleration of Maturity; Rescission and Annulment.

          If an Event of Default with respect to Securities of any Series at the
time outstanding occurs and is continuing (other than an Event of Default
referred to in Section 6.1(f) or (g)) then in every such case the Trustee or
the Holders of not less than 25% in principal amount of the outstanding
Securities of that Series may declare the principal amount (or, if any
Securities of that Series are Discount Securities, such portion of the
principal amount as may be specified in the terms of such Securities) of and
accrued and unpaid interest, if any, on all of the Securities of that Series to
be due and payable immediately, by a notice in writing to the Company (and to
the Trustee if given by Holders), and upon any such declaration such principal
amount (or specified amount) and accrued and unpaid interest, if any, shall
become immediately

20

 

due and payable. If an Event of Default specified in Section 6.1(f) or
(g) shall occur, the principal amount (or specified amount) of and accrued and
unpaid interest, if any, on all outstanding Securities shall ipso facto become
and be immediately due and payable without any declaration or other act on the
part of the Trustee or any Holder.

          At any time after such a declaration of acceleration with respect to any
Series has been made and before a judgment or decree for payment of the money
due has been obtained by the Trustee as hereinafter in this Article provided,
the Holders of a majority in principal amount of the outstanding Securities of
that Series, by written notice to the Company and the Trustee, may rescind and
annul such declaration and its consequences if:

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

      (i) all overdue interest, if any, on all Securities of that
Series,

      (ii) the principal of any Securities of that Series which have
become due otherwise than by such declaration of acceleration and
interest thereon at the rate or rates prescribed therefor in such
Securities,

      (iii) to the extent that payment of such interest is lawful,
interest upon any overdue principal and overdue interest at the
rate or rates prescribed therefor in such Securities, and

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

and

   (b) all Events of Default with respect to Securities of that Series,
other than the non-payment of the principal of Securities of that Series
which have become due solely by such declaration of acceleration, have
been cured or waived as provided in Section 6.13.

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

     Section 6.3. Collection of Indebtedness and Suits for Enforcement by
Trustee.

   The Company covenants that if

   (a) default is made in the payment of any interest on any Security
when such interest becomes due and payable and such default continues for
a period of 30 days, or

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

21

 

   (c) default is made in the deposit of any sinking fund payment when
and as due by the terms of a Security,

then, the Company will, upon demand of the Trustee, pay to it, for the benefit
of the Holders of such Securities, the whole amount then due and payable on
such Securities for principal and interest and, to the extent that payment of
such interest shall be legally enforceable, interest on any overdue principal
or any overdue interest, at the rate or rates prescribed therefor in such
Securities, 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.

          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, may
prosecute such proceeding to judgment or final decree and may enforce the same
against the Company or any other obligor upon such Securities and collect the
moneys adjudged or deemed 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 Securities of any Series 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 6.4. 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 proceeding or otherwise,

   (a) to file and prove a claim for the whole amount of principal and
interest owing and unpaid in respect of the Securities and to file such
other papers or documents as may be necessary or advisable in order to
have the claims of the Trustee (including any claim for the reasonable
compensation, expenses, disbursements and advances of the Trustee, its
agents and counsel) and of the Holders allowed in such judicial
proceeding, and

   (b) to collect and receive any moneys or other property payable or
deliverable on any such claims and to distribute the same,

22

 

and any custodian, receiver, assignee, trustee, liquidator, sequestrator or
other similar official in any such judicial proceeding is hereby authorized by
each Holder to make such payments to the Trustee and, in the event that the
Trustee shall consent to the making of such payments directly to the Holders,
to pay to the Trustee any amount due it for the reasonable compensation,
expenses, disbursements and advances of the Trustee, its agents and counsel,
and any other amounts due the Trustee under Section 7.7.

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

     Section 6.5. Trustee May Enforce Claims Without Possession of Securities.

          All rights of action and claims under this Indenture or the Securities may
be prosecuted and enforced by the Trustee without the possession of any of the
Securities 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 in respect of which such
judgment has been recovered.

     Section 6.6. Application of Money Collected.

          Any money collected by the Trustee pursuant to this Article 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 or interest,
upon presentation of the Securities 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 7.7;
and

          Second: To the payment of the amounts then due and unpaid for principal of
and interest on the Securities in respect of which or for the benefit of which
such money has been collected, ratably, without preference or priority of any
kind, according to the amounts due and payable on such Securities for principal
and interest, respectively; and

          Third: To the Company.

     Section 6.7. 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 the Securities of that
Series;

23

 

   (b) the Holders of not less than 25% in principal amount of the
outstanding Securities of that 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 that
Series;

it being understood and intended that no one or more of such Holders 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 of
such Holders, or to obtain or to seek to obtain priority or preference over any
other of such Holders or to enforce any right under this Indenture, except in
the manner herein provided and for the equal and ratable benefit of all such
Holders.

     Section 6.8. Unconditional Right of Holders to Receive Principal 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 of and interest, if any, on such Security on the
Stated Maturity or Stated Maturities expressed in such Security (or, in the
case of redemption, on the redemption date) and to institute suit for the
enforcement of any such payment, and such rights shall not be impaired without
the consent of such Holder.

     Section 6.9. Restoration of Rights and Remedies.

          If the Trustee or any Holder has instituted any proceeding to enforce any
right or remedy under this Indenture and such proceeding has been discontinued
or abandoned for any reason, or has been determined adversely to the Trustee or
to such Holder, then and in every such case, subject to any determination in
such proceeding, the Company, the Trustee and the Holders shall be restored
severally and respectively to their former positions hereunder and thereafter
all rights and remedies of the Trustee and the Holders shall continue as though
no such proceeding had been instituted.

     Section 6.10. Rights and Remedies Cumulative.

          Except as otherwise provided with respect to the replacement or payment of
mutilated, destroyed, lost or stolen Securities in Section 2.8, no right or
remedy herein conferred upon or reserved to the Trustee or to the Holders is
intended to be exclusive of any other right or remedy, and every right and
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

24

 

otherwise, shall not prevent the concurrent assertion or employment of any
other appropriate right or remedy.

     Section 6.11. Delay or Omission Not Waiver.

          No delay or omission of the Trustee or of any Holder of any Securities to
exercise any right or remedy accruing upon any Event of Default shall impair
any such right or remedy or constitute a waiver of any such Event of Default or
an acquiescence therein. Every right and remedy given by this Article or by
law to the Trustee or to the Holders may be exercised from time to time, and as
often as may be deemed expedient, by the Trustee or by the Holders, as the case
may be.

     Section 6.12. Control by Holders.

          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) such direction shall not be in conflict with any rule of law or
with this Indenture,

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

   (c) subject to the provisions of Section 6.1, the Trustee shall have
the right to decline to follow any such direction if the Trustee in good
faith shall, by a Responsible Officer of the Trustee, determine that the
proceeding so directed would involve the Trustee in personal liability.

     Section 6.13. 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 in the payment of the principal
of or interest on any Security of such Series (provided, however, that the
Holders of a majority in principal amount of the outstanding Securities of any
Series may rescind an acceleration and its consequences, including any related
payment default that resulted from such acceleration). Upon any such waiver,
such Default shall cease to exist, and any Event of Default arising therefrom
shall be deemed to have been cured, for every purpose of this Indenture; but no
such waiver shall extend to any subsequent or other Default or impair any right
consequent thereon.

     Section 6.14. 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

25

 

the Trustee for any action taken, suffered 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 shall not apply
to any suit instituted by the Company, to any suit instituted by the Trustee,
to any suit instituted by any Holder, or group of Holders, holding in the
aggregate more than 10% in principal amount of the outstanding Securities of
any Series, or to any suit instituted by any Holder for the enforcement of the
payment of the principal of or interest on any Security on or after the Stated
Maturity or Stated Maturities expressed in such Security (or, in the case of
redemption, on the redemption date).

ARTICLE VII.

TRUSTEE

     Section 7.1. Duties of Trustee.

   (a) If an Event of Default has occurred and is continuing, the
Trustee shall exercise 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.

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

      (i) The Trustee need perform only those duties that are
specifically set forth in this Indenture and no others.

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

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

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

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

      (iii) The Trustee shall not be liable with respect to any
action taken, suffered or omitted to be taken by it with respect to
Securities of any Series in

26

 

good faith in accordance with the direction of the Holders of
a majority in principal amount of the outstanding Securities of
such Series relating to the time, method and place of conducting
any proceeding for any remedy available to the Trustee, or
exercising any trust or power conferred upon the Trustee, under
this Indenture with respect to the Securities of such Series.

   (d) Every provision of this Indenture that in any way relates to the
Trustee is subject to paragraph (a), (b) and (c) of this Section.

   (e) The Trustee may refuse to perform any duty or exercise any right
or power unless it receives indemnity satisfactory to it against any
loss, liability or expense.

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

   (g) No provision of this Indenture shall require the Trustee to risk
its own funds or otherwise incur any financial liability in the
performance of any of its duties, 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 is not
reasonably assured to it.

   (h) The Paying Agent, the Registrar and any authenticating agent
shall be entitled to the protections, immunities and standard of care as
are set forth in paragraphs (a), (b) and (c) of this Section with respect
to the Trustee.

     Section 7.2. Rights of Trustee.

   (a) The Trustee may rely on and shall be protected in acting or
refraining from acting upon any document believed by it to be genuine and
to have been signed or presented by the proper person. The Trustee need
not investigate any fact or matter stated in the document.

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

   (c) The Trustee may act through agents and shall not be responsible
for the misconduct or negligence of any agent appointed with due care.
No Depository shall be deemed an agent of the Trustee and the Trustee
shall not be responsible for any act or omission by any Depository.

   (d) The Trustee shall not be liable for any action it takes or omits
to take in good faith which it believes to be authorized or within its
rights or powers.

   (e) The Trustee may consult with counsel and the advice of such
counsel or any Opinion of Counsel shall be full and complete
authorization and protection in respect

27

 

of any action taken, suffered or omitted by it hereunder in good
faith and in reliance thereon.

   (f) The Trustee shall be under no obligation to exercise any of the
rights or powers vested in it by this Indenture at the request or
direction of any of the Holders of Securities unless such Holders 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.

     Section 7.3. Individual Rights of Trustee.

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

     Section 7.4. Trustee’s Disclaimer.

          The Trustee makes no representation as to the validity or adequacy of this
Indenture or the Securities, it shall not be accountable for the Company’s use
of the proceeds from the Securities, and it shall not be responsible for any
statement in the Securities other than its authentication.

     Section 7.5. Notice of Defaults.

          If a Default or Event of Default occurs and is continuing with respect to
the Securities of any Series and if it is known to a Responsible Officer of the
Trustee, the Trustee shall mail to each Securityholder of the Securities of
that Series and, if any Bearer Securities are outstanding, publish on one
occasion in an Authorized Newspaper, notice of a Default or Event of Default
within 90 days after it occurs or, if later, after a Responsible Officer of the
Trustee has knowledge of such Default or Event of Default. Except in the case
of a Default or Event of Default in payment of principal of or interest on any
Security of any Series, the Trustee may withhold the notice if and so long as
its corporate trust committee or a committee of its Responsible Officers in
good faith determines that withholding the notice is in the interests of
Securityholders of that Series.

     Section 7.6. Reports by Trustee to Holders.

          Within 60 days after May 15 in each year, the Trustee shall transmit by
mail to all Securityholders, as their names and addresses appear on the
register kept by the Registrar and, if any Bearer Securities are outstanding,
publish in an Authorized Newspaper, a brief report dated as of such May 15, in
accordance with, and to the extent required under, TIA § 313.

          A copy of each report at the time of its mailing to Securityholders of any
Series shall be filed with the SEC and each stock exchange on which the
Securities of that Series are listed. The Company shall promptly notify the
Trustee when Securities of any Series are listed on any stock exchange.

28

 

     Section 7.7. Compensation and Indemnity.

          The Company shall pay to the Trustee from time to time reasonable
compensation for its services. The Trustee’s compensation shall not be limited
by any law on compensation of a trustee of an express trust. The Company shall
reimburse the Trustee upon request for all reasonable out-of-pocket expenses
incurred by it. Such expenses shall include the reasonable compensation and
expenses of the Trustee’s agents and counsel.

          The Company shall indemnify the Trustee (including the cost of defending
itself) against any loss, liability or expense incurred by it except as set
forth in the next paragraph in the performance of its duties under this
Indenture as Trustee or Agent. The Trustee shall notify the Company promptly
of any claim for which it may seek indemnity. The Company shall defend the
claim and the Trustee shall cooperate in the defense. The Trustee may have
separate counsel and the Company shall pay the reasonable fees and expenses of
such counsel. The Company need not pay for any settlement made without its
consent, which consent shall not be unreasonably withheld. This
indemnification shall apply to officers, directors, employees, shareholders and
agents of the Trustee.

          The Company need not reimburse any expense or indemnify against any loss
or liability incurred by the Trustee or by any officer, director, employee,
shareholder or agent of the Trustee through negligence or bad faith.

          To secure the Company’s payment obligations in this Section, the Trustee
shall have a lien prior to the Securities of any Series on all money or
property held or collected by the Trustee, except that held in trust to pay
principal and interest on particular Securities of that Series.

          When the Trustee incurs expenses or renders services after an Event of
Default specified in Section 6.1(f) or (g) occurs, the expenses and the
compensation for the services are intended to constitute expenses of
administration under any Bankruptcy Law.

     Section 7.8. Replacement of Trustee.

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

          The Trustee may resign with respect to the Securities of one or more
Series by so notifying the Company. The Holders of a majority in principal
amount of the Securities of any Series may remove the Trustee with respect to
that Series by so notifying the Trustee and the Company. The Company may
remove the Trustee with respect to Securities of one or more Series if:

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

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

29

 

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

   (d) the Trustee becomes incapable of acting.

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

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

          If the Trustee with respect to the Securities of any one or more Series
fails to comply with Section 7.10, any Securityholder of the applicable Series
may petition any court of competent jurisdiction for the removal of the Trustee
and the appointment of a successor Trustee.

          A successor Trustee shall deliver a written acceptance of its appointment
to the retiring Trustee and to the Company. Immediately after that, the
retiring Trustee shall transfer all property held by it as Trustee to the
successor Trustee subject to the lien provided for in Section 7.7, the
resignation or removal of the retiring Trustee shall become effective, and the
successor Trustee shall have all the rights, powers and duties of the Trustee
with respect to each Series of Securities for which it is acting as Trustee
under this Indenture. A successor Trustee shall mail a notice of its
succession to each Securityholder of each such Series and, if any Bearer
Securities are outstanding, publish such notice on one occasion in an
Authorized Newspaper. Notwithstanding replacement of the Trustee pursuant to
this Section 7.8, the Company’s obligations under Section 7.7 hereof shall
continue for the benefit of the retiring trustee with respect to expenses and
liabilities incurred by it prior to such replacement.

     Section 7.9. Successor Trustee by Merger, etc.

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

     Section 7.10. Eligibility; Disqualification.

          This Indenture shall always have a Trustee who satisfies the requirements
of TIA § 310(a)(1), (2) and (5). The Trustee shall always have a combined
capital and surplus of at least $25,000,000 as set forth in its most recent
published annual report of condition. The Trustee shall comply with TIA §
310(b).

30

 

     Section 7.11. Preferential Collection of Claims Against Company.

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

ARTICLE VIII.

SATISFACTION AND DISCHARGE; DEFEASANCE

     Section 8.1. Satisfaction and Discharge of Indenture.

          This Indenture shall upon Company Order cease to be of further effect
(except as hereinafter provided in this Section 8.1), and the Trustee, at the
expense of the Company, shall execute proper instruments acknowledging
satisfaction and discharge of this Indenture, when

          (a) either

      (i) all Securities theretofore authenticated and delivered
(other than Securities that have been destroyed, lost or stolen and
that have been replaced or paid) have been delivered to the Trustee
for cancellation; or

      (ii) all such Securities not theretofore delivered to the
Trustee for cancellation

          (1) have become due and payable, or

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

          (3) 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, or

          (4) are deemed paid and discharged pursuant to Section
8.3, as applicable;

and the Company, in the case
of (1), (2) or (3) above, has deposited or caused
to be deposited with the Trustee as trust funds in trust an amount sufficient
for the purpose of paying and discharging the entire indebtedness on such
Securities not theretofore delivered to the Trustee for cancellation, for
principal and interest to the date of such deposit (in the case of Securities
which have become due and payable on or prior to the date of such deposit) or
to the Stated Maturity or redemption date, as the case may be;

   (b)
the Company has paid or caused to be paid all other sums payable
hereunder by the Company; and

31

 

   (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 have been complied with.

          Notwithstanding the satisfaction and discharge of this Indenture, the
obligations of the Company to the Trustee under Section 7.7, and, if money
shall have been deposited with the Trustee pursuant to clause (a) of this
Section, the provisions of Sections 2.4, 2.7, 2.8, 8.1 8.2 and 8.5 shall
survive.

     Section 8.2. Application of Trust Funds; Indemnification.

   (a) Subject to the provisions of Section 8.5, all money deposited
with the Trustee pursuant to Section 8.1, all money and U.S. Government
Obligations or Foreign Government Obligations deposited with the Trustee
pursuant to Section 8.3 or 8.4 and all money received by the Trustee in
respect of U.S. Government Obligations or Foreign Government Obligations

deposited with the Trustee pursuant to Section 8.3 or 8.4, shall be held
in trust and applied by it, in accordance with the provisions of the
Securities and this Indenture, 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 and interest for whose payment such money has been deposited
with or received by the Trustee or to make mandatory sinking fund
payments or analogous payments as contemplated by Sections 8.3 or 8.4.

   (b) The Company shall pay and shall indemnify the Trustee against
any tax, fee or other charge imposed on or assessed against U.S.
Government Obligations or Foreign Government Obligations deposited
pursuant to Sections 8.3 or 8.4 or the interest and principal received in
respect of such obligations other than any payable by or on behalf of
Holders.

   (c) The Trustee shall deliver or pay to the Company from time to
time upon Company Request any U.S. Government Obligations or Foreign
Government Obligations or money held by it as provided in Sections 8.3 or
8.4 which, in the opinion of a nationally recognized firm of independent
certified public accountants expressed in a written certification thereof
delivered to the Trustee, are then in excess of the amount thereof which
then would have been required to be deposited for the purpose for which
such U.S. Government Obligations or Foreign Government Obligations or
money were deposited or received. This provision shall not authorize the
sale by the Trustee of any U.S. Government Obligations or Foreign
Government Obligations held under this Indenture.

     Section 8.3. Legal Defeasance of Securities of any Series.

          Unless
this Section 8.3 is otherwise specified, pursuant to Section
2.2.20, to be inapplicable to Securities of any Series, the Company shall be
deemed to have paid and discharged the entire indebtedness on all the
outstanding Securities of such Series on the 91st day after the date of the
deposit referred to in subparagraph (d) hereof, and the provisions of this
Indenture, as it relates to such outstanding Securities of such Series, shall
no longer be in effect

32

 

(and the Trustee, at the expense of the Company, shall, at Company
Request, execute proper instruments acknowledging the same), except as to:

   (a) the rights of Holders of Securities of such Series to receive,
from the trust funds described in subparagraph (d) hereof, (i) payment of
the principal of and each installment of principal of and interest on the
outstanding Securities of such Series on the Stated Maturity of such
principal or installment of principal or interest and (ii) the benefit of
any mandatory sinking fund payments applicable to the Securities of such
Series on the day on which such payments are due and payable in
accordance with the terms of this Indenture and the Securities of such
Series;

   (b) the provisions of Sections 2.4, 2.7, 2.8, 8.2, 8.3 and 8.5; and

   (c) the rights, powers, trust and immunities of the Trustee
hereunder;

provided that, the following conditions shall have been satisfied:

   (d)
the Company shall have deposited or caused to be deposited
irrevocably with the Trustee as trust funds in trust for the purpose of
making the following payments, specifically pledged as security for and
dedicated solely to the benefit of the Holders of such Securities (i) in
the case of Securities of such Series denominated in Dollars, cash in
Dollars (or such other money or currencies as shall then be legal tender
in the United States) and/or U.S. Government Obligations, or (ii) in the
case of Securities of such Series denominated in a Foreign Currency
(other than a composite currency), money and/or Foreign Government
Obligations, which through the payment of interest and principal in
respect thereof, in accordance with their terms, will provide (and
without reinvestment and assuming no tax liability will be imposed on
such Trustee), not later than one day before the due date of any payment
of money, an amount in cash, sufficient, in the opinion of a nationally
recognized firm of independent public accountants expressed in a written
certification thereof delivered to the Trustee, to pay and discharge each
installment of principal (including mandatory sinking fund or analogous
payments) of and interest, if any, on all the Securities of such Series
on the dates such installments of interest or principal are due;

   (e) such deposit will not result in a breach or violation of, or
constitute a default under, this Indenture or any other agreement or
instrument to which the Company is a party or by which it is bound;

   (f) no Default or Event of Default with respect to the Securities of
such Series shall have occurred and be continuing on the date of such
deposit or during the period ending on the 91st day after such date;

   (g)
the Company shall have delivered to the Trustee an Officers’
Certificate and an Opinion of Counsel to the effect that (i) the
Company has received from, or there has been
published by, the Internal Revenue
Service a ruling, or (ii) since the date of execution of this Indenture,
there has been a change in the applicable Federal income tax law, in
either case to the effect that, and based thereon such Opinion of Counsel
shall confirm that, the Holders of the Securities of such Series will not
recognize income, gain

33

 

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;

   (h)
the Company shall have delivered to the Trustee an Officers’
Certificate stating that the deposit was not made by the Company with the
intent of preferring the Holders of the Securities of such Series over
any other creditors of the company or with the intent of defeating,
hindering, delaying or defrauding any other creditors of the Company;

   (i) such deposit shall not result in the trust arising from such
deposit constituting an investment company (as defined in the Investment
Company Act of 1940, as amended), or such trust shall be qualified under
such Act or exempt from regulation thereunder; and

   (j)
the Company shall have delivered to the Trustee an Officers’
Certificate and an Opinion of Counsel, each stating that all conditions
precedent provided for relating to the defeasance contemplated by this
Section have been complied with.

     Section 8.4. Covenant Defeasance.

          Unless this Section 8.4 is otherwise specified pursuant to Section 2.2.20
to be inapplicable to Securities of any Series, on and after the 91st day after
the date of the deposit referred to in subparagraph (a) hereof, the Company may
omit to comply with any term, provision or condition set forth under Sections
4.2, 4.3, 4.4, 4.5, 4.6, and 5.1 as well as any additional covenants contained
in a supplemental indenture hereto for a particular Series of Securities or a
Board Resolution or an Officers’ Certificate delivered pursuant to Section
2.2.20 (and the failure to comply with any such covenants shall not constitute
a Default or Event of Default under Section 6.1) and the occurrence of any
event described in clause (e) of Section 6.1 shall not constitute a Default or
Event of Default hereunder, with respect to the Securities of such Series,
provided that the following conditions shall have been satisfied:

   (a)
With reference to this Section 8.4, the Company has deposited or
caused to be irrevocably deposited (except as provided in Section 8.2(c))
with the Trustee as trust funds in trust, specifically pledged as
security for, and dedicated solely to, the benefit of the Holders of such
Securities (i) in the case of Securities of such Series denominated in
Dollars, cash in Dollars (or such other money or currencies as shall then
be legal tender in the United States) and/or U.S. Government Obligations,
or (ii) in the case of Securities of such Series denominated in a Foreign
Currency (other than a composite currency), money and/or Foreign
Government Obligations, which through the payment of interest and
principal in respect thereof, in accordance with their terms, will
provide (and without reinvestment and assuming no tax liability will be
imposed on such Trustee), not later than one day before the due date of
any payment of money, an amount in cash, sufficient, in the opinion of a
nationally recognized firm of independent certified public accountants
expressed in a written certification thereof delivered to the Trustee, to

34

 

pay principal and interest, if any, on and any mandatory sinking
fund in respect of the Securities of such Series on the dates such
installments of interest or principal are due;

   (b) Such deposit will not result in a breach or violation of, or
constitute a default under, this Indenture or any other agreement or
instrument to which the Company is a party or by which it is bound;

   (c) No Default or Event of Default with respect to the Securities of
such Series shall have occurred and be continuing on the date of such
deposit or during the period ending on the 91st day after such date;

   (d)
the Company shall have delivered to the Trustee an Opinion of
Counsel confirming that 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 defeasance and will be subject to federal
income tax on the same amounts, in the same manner and at the same times
as would have been the case if such deposit and defeasance had not
occurred;

   (e)
the Company shall have delivered to the Trustee an Officers’
Certificate stating the deposit was not made by the Company with the
intent of preferring the Holders of the Securities of such Series over
any other creditors of the Company or with the intent of defeating,
hindering, delaying or defrauding any other creditors of the Company; and

   (f)
The Company shall have delivered to the Trustee an Officers’
Certificate and an Opinion of Counsel, each stating that all conditions
precedent herein provided for relating to the defeasance contemplated by
this Section have been complied with.

     Section 8.5. Repayment to Company.

          The Trustee and the Paying Agent shall pay to the Company upon request any
money held by them for the payment of principal and interest that remains
unclaimed for two years. After that, Securityholders entitled to the money
must look to the Company for payment as general creditors unless an applicable
abandoned property law designates another person.

ARTICLE IX.

AMENDMENTS AND WAIVERS

     Section 9.1. Without Consent of Holders.

          The Company and the Trustee may amend or supplement this Indenture or the
Securities of one or more Series without the consent of any Securityholder:

   (a) to cure any ambiguity, defect or inconsistency;

   (b) to comply with Article V;

   (c) to provide for uncertificated Securities in addition to or in
place of certificated Securities;

35

 

   (d) to make any change that does not adversely affect the rights of
any Securityholder;

   (e) to provide for the issuance of and establish the form and terms
and conditions of Securities of any Series as permitted by this
Indenture;

   (f) to evidence and provide for the acceptance of appointment
hereunder by a successor Trustee with respect to the Securities of one or
more Series and to add to or change any of the provisions of this
Indenture as shall be necessary to provide for or facilitate the
administration of the trusts hereunder by more than one Trustee; or

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

     Section 9.2. With Consent of Holders.

          The Company and the Trustee may enter into a supplemental indenture with
the written consent of the Holders of at least a majority in principal amount
of the outstanding Securities of each Series affected by such supplemental
indenture (including consents obtained in connection with a tender offer or
exchange offer for the Securities of such Series), 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 Securityholders of each such Series. Except as
provided in Section 6.13, the Holders of at least a majority in principal
amount of the outstanding Securities of each Series affected by such waiver by
notice to the Trustee (including consents obtained in connection with a tender
offer or exchange offer for the Securities of such Series) may waive compliance
by the Company with any provision of this Indenture or the Securities with
respect to such Series.

          It shall not be necessary for the consent of the Holders of Securities
under this Section 9.2 to approve the particular form of any proposed
supplemental indenture or waiver, but it shall be sufficient if such consent
approves the substance thereof. After a supplemental indenture or waiver under
this section becomes effective, the Company shall mail to the Holders of
Securities affected thereby and, if any Bearer Securities affected thereby are
outstanding, publish on one occasion in an Authorized Newspaper, a notice
briefly describing the supplemental indenture or waiver. Any failure by the
Company to mail or publish such notice, or any defect therein, shall not,
however, in any way impair or affect the validity of any such supplemental
indenture or waiver.

     Section 9.3. Limitations.

          Without the consent of each Securityholder affected, an amendment or
waiver may not:

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

   (b) reduce the rate of or extend the time for payment of interest
(including default interest) on any Security;

36

 

   (c) reduce the principal or change the Stated Maturity of any
Security or reduce the amount of, or postpone the date fixed for, the
payment of any sinking fund or analogous obligation;

   (d) reduce the principal amount of Discount Securities payable upon
acceleration of the maturity thereof;

   (e) waive a Default or Event of Default in the payment of the
principal of or interest, if any, on any Security (except a rescission of
acceleration of the Securities of any Series by the Holders of at least a
majority in principal amount of the outstanding Securities of such Series
and a waiver of the payment default that resulted from such
acceleration);

   (f) make the principal of or interest, if any, on any Security
payable in any currency other than that stated in the Security;

   (g) make any change in Sections 6.8, 6.13, 9.3 (this sentence),
10.15 or 10.16; or

   (h) waive a redemption payment with respect to any Security or
change any of the provisions with respect to the redemption of any
Securities.

     Section 9.4. Compliance with Trust Indenture Act.

          Every amendment to this Indenture or the Securities of one or more Series
shall be set forth in a supplemental indenture hereto that complies with the
TIA as then in effect.

     Section 9.5. Revocation and Effect of Consents.

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

          Any amendment or waiver once effective shall bind every Securityholder of
each Series affected by such amendment or waiver unless it is of the type
described in any of clauses (a) through (g) of Section 9.3. In that case, the
amendment or waiver shall bind each Holder of a Security who has consented to
it and every subsequent Holder of a Security or portion of a Security that
evidences the same debt as the consenting Holder’s Security.

     Section 9.6. Notation on or Exchange of Securities.

          The Trustee may place an appropriate notation about an amendment or waiver
on any Security of any Series thereafter authenticated. The Company in
exchange for Securities of that Series may issue and the Trustee shall
authenticate upon request new Securities of that Series that reflect the
amendment or waiver.

37

 

     Section 9.7. Trustee Protected.

     In executing, or accepting the additional trusts created by, any
supplemental indenture permitted by this Article or the modifications thereby
of the trusts created by this Indenture, the Trustee shall be entitled to
receive, and (subject to Section 7.1) 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. The Trustee shall sign all
supplemental indentures, except that the Trustee need not sign any supplemental
indenture that adversely affects its rights.

ARTICLE X.

MISCELLANEOUS

     Section 10.1. Trust Indenture Act Controls.

          If any provision of this Indenture limits, qualifies, or conflicts with
another provision which is required or deemed to be included in this Indenture
by the TIA, such required or deemed provision shall control.

     Section 10.2. Notices.

          Any notice or communication by the Company or the Trustee to the other is
duly given if in writing and delivered in person or mailed by first-class mail:

if to the Company:

Interstate Hotels & Resorts, Inc.

401 N. Fairfax Drive

Arlington, VA 22203

Attention: Chief Financial Officer

with a copy to:

Christopher L. Bennett, Esq.

Senior Vice President and General Counsel

Interstate Hotels & Resorts, Inc.

401 N. Fairfax Drive

Arlington, VA 22203

and to:

William P. O’Neill, Esq.

Latham & Watkins LLP

555 Eleventh Street, NW

Suite 1000

Washington, D.C. 20004

if to the Trustee:

38

 

[Name of Trustee]

[Address]

_______________________

_______________________

Attention: ______________

          The Company or the Trustee by notice to the other may designate additional
or different addresses for subsequent notices or communications. Copies to
counsel shall not constitute notice.

          Any notice or communication to a Securityholder shall be mailed by
first-class mail to his address shown on the register kept by the Registrar
and, if any Bearer Securities are outstanding, published in an Authorized
Newspaper. Failure to mail a notice or communication to a Securityholder of
any Series or any defect in it shall not affect its sufficiency with respect to
other Securityholders of that or any other Series.

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

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

     Section 10.3. Communication by Holders with Other Holders.

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

     Section 10.4. Certificate and Opinion as to Conditions Precedent.

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

   (a) an Officers’ Certificate stating that, in the opinion of the
signers, all conditions precedent, if any, provided for in this Indenture
relating to the proposed action have been complied with; and

   (b) an Opinion of Counsel stating that, in the opinion of such
counsel, all such conditions precedent have been complied with.

     Section 10.5. Statements Required in Certificate or Opinion.

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

39

 

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

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

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

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

     Section 10.6. Rules by Trustee and Agents.

          The Trustee may make reasonable rules for action by or a meeting of
Securityholders of one or more Series. Any Agent may make reasonable rules and
set reasonable requirements for its functions.

     Section 10.7. Legal Holidays.

          Unless otherwise provided by Board Resolution, Officers’ Certificate or
supplemental indenture for a particular Series, a “Legal Holiday” is any day
that is not a Business Day. If a payment date is a Legal Holiday at a place of
payment, payment may be made at that place on the next succeeding day that is
not a Legal Holiday, and no interest shall accrue for the intervening period.

     Section 10.8. No Recourse Against Others.

          A director, officer, employee or stockholder, as such, of the
Company shall not have any liability for any obligations of the Company under the
Securities or the Indenture or for any claim based on, in respect of or by
reason of such obligations or their creation. Each Securityholder by accepting
a Security waives and releases all such liability. The waiver and release are
part of the consideration for the issue of the Securities.

     Section 10.9. Counterparts.

          This Indenture may be executed in any number of counterparts and by the
parties hereto in separate counterparts, each of which when so executed shall
be deemed to be an original and all of which taken together shall constitute
one and the same agreement.

     Section 10.10. Governing Laws.

          THIS INDENTURE AND THE SECURITIES SHALL BE GOVERNED BY THE LAWS OF THE
STATE OF NEW YORK APPLICABLE TO AGREEMENTS MADE AND TO BE PERFORMED IN SUCH
STATE, WITHOUT REGARD TO THE CONFLICT OF LAWS PROVISIONS THEREOF.

40

 

     Section 10.11. No Adverse Interpretation of Other Agreements.

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

     Section 10.12. Successors.

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

     Section 10.13. Severability.

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

     Section 10.14. Table of Contents, Headings, Etc.

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

     Section 10.15. Securities in a Foreign Currency or in ECU.

          Unless otherwise specified in a Board Resolution, a supplemental indenture
hereto or an Officers’ Certificate delivered pursuant to Section 2.2 of this
Indenture with respect to a particular Series of Securities, whenever for
purposes of this Indenture any action may be taken by the Holders of a
specified percentage in aggregate principal amount of Securities of all Series
or all Series affected by a particular action at the time outstanding and, at
such time, there are outstanding Securities of any Series which are denominated
in a coin or currency other than Dollars (including ECUs), then the principal
amount of Securities of such Series which shall be deemed to be outstanding for
the purpose of taking such action shall be that amount of Dollars that could be
obtained for such amount at the Market Exchange Rate at such time. For
purposes of this Section 10.15, “Market Exchange Rate” shall mean the noon
Dollar buying rate in New York City for cable transfers of that currency as
published by the Federal Reserve Bank of New York; provided, however, in the
case of ECUs, Market Exchange Rate shall mean the rate of exchange determined
by the Commission of the European Union (or any successor thereto) as published
in the Official Journal of the European Union (such publication or any
successor publication, the “Journal”). If such Market Exchange Rate is not
available for any reason with respect to such currency, the Trustee shall use,
in its sole discretion and without liability on its part, such quotation of the
Federal Reserve Bank of New York or, in the case of ECUs, the rate of exchange
as published in the Journal, as of the most recent available date, or
quotations or, in the case of ECUs, rates of exchange from one or more major
banks in The City of New York or in the country of issue of the currency in
question or, in the case of ECUs, in Luxembourg or such other quotations or, in
the case of ECUs, rates of exchange as the Trustee, upon consultation with the
Company, shall deem appropriate. The provisions of this paragraph shall

41

 

apply in determining the equivalent principal amount in respect of
Securities of a Series denominated in currency other than Dollars in connection
with any action taken by Holders of Securities pursuant to the terms of this
Indenture.

          All decisions and determinations of the Trustee regarding the Market
Exchange Rate or any alternative determination provided for in the preceding
paragraph shall be in its sole discretion and shall, in the absence of manifest
error, be conclusive to the extent permitted by law for all purposes and
irrevocably binding upon the Company and all Holders.

     Section 10.16. Judgment Currency.

          The Company agrees, to the fullest extent that it may effectively do so
under applicable law, that (a) if for the purpose of obtaining judgment in any
court it is necessary to convert the sum due in respect of the principal of or
interest or other amount on the Securities of any Series (the “Required
Currency”) into a currency in which a judgment will be rendered (the “Judgment
Currency”), the rate of exchange used shall be the rate at which in accordance
with normal banking procedures the Trustee could purchase in The City of New
York the Required Currency with the Judgment Currency on the day on which final
unappealable judgment is entered, unless such day is not a New York Banking
Day, then, the rate of exchange used shall be the rate at which in accordance
with normal banking procedures the Trustee could purchase in The City of New
York the Required Currency with the Judgment Currency on the New York Banking
Day preceding the day on which final unappealable judgment is entered and (b)
its obligations under this Indenture to make payments in the Required Currency
(i) shall not be discharged or satisfied by any tender, any recovery pursuant
to any judgment (whether or not entered in accordance with subsection (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 payee, 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. For
purposes of the foregoing, “New York Banking Day” means any day except a
Saturday, Sunday or a legal holiday in The City of New York on which banking
institutions are authorized or required by law, regulation or executive order
to close.

ARTICLE XI.

SINKING FUNDS

     Section 11.1. Applicability of Article.

          The provisions of this Article shall be applicable to any sinking fund for
the retirement of the Securities of a Series, except as otherwise permitted or
required by any form of Security of such Series issued pursuant to this
Indenture.

          The minimum amount of any sinking fund payment provided for by the terms
of the Securities of any Series is herein referred to as a “mandatory sinking
fund payment” and any other amount provided for by the terms of Securities of
such Series is herein referred to as an

42

 

“optional sinking fund payment.” If provided for by the terms of
Securities of any Series, the cash amount of any sinking fund payment may be
subject to reduction as provided in Section 11.2. Each sinking fund payment
shall be applied to the redemption of Securities of any Series as provided for
by the terms of the Securities of such Series.

     Section 11.2. Satisfaction of Sinking Fund Payments with Securities.

          The Company may, in satisfaction of all or any part of any sinking fund
payment with respect to the Securities of any Series to be made pursuant to the
terms of such Securities (1) deliver outstanding Securities of such Series to
which such sinking fund payment is applicable (other than any of such
Securities previously called for mandatory sinking fund redemption) and (2)
apply as credit Securities of such Series to which such sinking fund payment is
applicable and which have been redeemed either at the election of the Company
pursuant to the terms of such Series of Securities (except pursuant to any
mandatory sinking fund) or through the application of permitted optional
sinking fund payments or other optional redemptions pursuant to the terms of
such Securities, provided that such Securities have not been previously so
credited. Such Securities shall be received by the Trustee, together with an
Officers’ Certificate with respect thereto, not later than 15 days prior to the
date on which the Trustee begins the process of selecting Securities for
redemption, and shall be credited for such purpose by the Trustee at the price
specified in such Securities for redemption through operation of the sinking
fund and the amount of such sinking fund payment shall be reduced accordingly.
If as a result of the delivery or credit of Securities in lieu of cash payments
pursuant to this Section 11.2, the principal amount of Securities of such
Series to be redeemed in order to exhaust the aforesaid cash payment shall be
less than $100,000, the Trustee need not call Securities of such Series for
redemption, except upon receipt of a Company Order that such action be taken,
and such cash payment shall be held by the Trustee or a Paying Agent and
applied to the next succeeding sinking fund payment, provided, however, that
the Trustee or such Paying Agent shall from time to time upon receipt of a
Company Order pay over and deliver to the Company any cash payment so being
held by the Trustee or such Paying Agent upon delivery by the Company to the
Trustee of Securities of that Series purchased by the Company having an unpaid
principal amount equal to the cash payment required to be released to the
Company.

     Section 11.3. Redemption of Securities for Sinking Fund.

          Not less than 45 days (unless otherwise indicated in the Board Resolution,
supplemental indenture hereto or Officers’ Certificate in respect of a
particular Series of Securities) prior to each sinking fund payment date for
any Series of Securities, the Company will deliver to the Trustee an Officers’
Certificate specifying the amount of the next ensuing mandatory sinking fund
payment for that Series pursuant to the terms of that Series, the portion
thereof, if any, which is to be satisfied by payment of cash and the portion
thereof, if any, which is to be satisfied by delivering and crediting of
Securities of that Series pursuant to Section 11.2, and the optional amount, if
any, to be added in cash to the next ensuing mandatory sinking fund payment,
and the Company shall thereupon be obligated to pay the amount therein
specified. Not less than 30 days (unless otherwise indicated in the Board
Resolution, Officers’ Certificate or supplemental indenture in respect of a
particular Series of Securities) before each such sinking fund payment date the
Trustee shall select the Securities to be redeemed upon such sinking fund
payment date in the manner specified in Section 3.2 and cause notice of the
redemption thereof

43

 

to be given in the name of and at the expense of the Company in the manner
provided in Section 3.3. Such notice having been duly given, the redemption of
such Securities shall be made upon the terms and in the manner stated in
Sections 3.4, 3.5 and 3.6.

44

 

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

	 	 	 
	

	 	Interstate Hotels & Resorts, Inc.
	 
	 	 
	

	 	By:_______________________________
	

	 	Name:
	

	 	Its:
	 
	 	 
	

	 	[Name of Trustee]
	 
	 	 
	

	 	By:_______________________________
	

	 	Name:
	

	 	Its:exv10w1

 

Exhibit 10.1

AMENDMENT

TO

STOCK PURCHASE AGREEMENT

     This AMENDMENT TO STOCK PURCHASE AGREEMENT (the “Agreement”) is entered
into August 17, 2004, by and between Covenant Group of Texas, Inc., a Delaware
corporation (the “Seller”), and Capital Senior Management 1, Inc., a Texas
corporation (“Buyer”).

WITNESSETH:

     WHEREAS, the Seller and Buyer have entered into that certain Stock
Purchase Agreement dated July 30, 2004 (the “Agreement”);

     WHEREAS, Buyer and Seller desire to amend the Agreement upon the terms and
conditions herein set forth;

     NOW, THEREFORE, in consideration of the agreements herein contained, and
other good and valuable consideration, the receipt and sufficiency of which is
hereby acknowledged, the parties hereto hereby agree as follows:

     1. Buyer and Seller agree that Section 2(b) of the Agreement is hereby
amended in its entirety as follows:

     ” (b) Purchase Price. Subject to any adjustments as provided herein, the
purchase price for the CGIM Shares shall be $3,600,000.00 (the “Purchase
Price”). The Buyer agrees to pay to the Seller $2,250,000.00 of the Purchase
Price (the “Down Payment”) at the Closing by wire transfer or delivery of other
immediately available funds, with $250,000.00 of the Down Payment subject to
reduction as provide below (the “Adjusted Down Payment”). Unless reduced as
provided below, the remainder of the Purchase Price (the “Remaining Purchase
Price”) shall be paid in three (3) installments of $300,000.00 payable on the
first year anniversary, $400,000.00 on the third year anniversary, and
$650,000.00 on the fifth year anniversary of the Closing Date (each a “Payment
Date”). The Adjusted Down Payment and the Remaining Purchase Price shall be
reduced by (i) and adjusted by (ii) as follows:

   (i) the amounts, if any, of pre-Closing Liabilities of CGIM paid by
Buyer upon at least thirty (30) days’ prior written notice to Seller if
Seller shall have failed to pay or undertake off its to contest or defend
same within such thirty (30) day period; and

   (ii) the amount of any Management Fee Deficit or Credit as of the
Payment Date that has not previously been applied to reduce or reinstate
the Adjusted Down Payment and the Remaining Purchase Price. “Management
Fee Deficit” shall mean the amount as of the applicable Payment Date that
the Terminated Management Agreement Amount exceeds the Bucket Fill-Up
Amount. “Management Fee Credit” shall mean the

 

 

amount as of the applicable Payment Date that the Bucket Fill-Up
Amount exceeds the Terminated Management Agreement Amount. “Terminated
Management Agreement Amount” means the aggregate management fees that
would have been received by CGIM pursuant to all Terminated Management
Agreements for the period from the termination date of the Terminated
Management Agreement to the next Payment Date, assuming that the
Terminated Management Agreement had continued in existence until such
next Payment Date, plus any accrued but unpaid management fees less (i)
any penalty fees paid to CGIM pursuant to the Terminated Management
Agreement and (ii) any management fees already offset by Bucket Fill-Up
Amounts. “Bucket Fill-Up Amount” means the aggregate management fees
received by CGIM pursuant to all Substituted Management Agreements for
the period from the commencement date of the Substituted Management
Agreement to the next Payment Date, less management fees already counted
as Bucket Fill-Up Amounts. “Terminated Management Agreement” means any
Management Agreement for a Third Party Property listed on Schedule
2(b)(ii) attached hereto that is terminated, or the existing management
fee percentage or minimum payment is reduced, or is not renewed or
extended for any reason, other than the breach after Closing by CGIM (or
by any Affiliate thereof to which CGIM has assigned such Management
Agreement) of its obligations under the Management Agreement that
constitutes cause for termination of CGIM as defined in the applicable
Management Agreement. However, a management agreement for Eden Terrace
of Bedford in Bedford, Texas is currently default and shall not be
considered a breach after Closing by CGIM. In addition, a moratorium or
change in the Texas reimbursement program regarding Meadow View in
Arlington, Texas that causes an occupancy or debt service coverage
default under the Meadow View loan documents, shall not be considered a
breach after Closing by CGIM. “Substituted Management Agreement” means
any Management Agreement for a Third Party Property that is assigned or
referred to CGIM by Seller or its Affiliate not included on Schedule
2(b)(ii) attached hereto. In the event that the amount of any Management
Foe Deficit on any Payment Date exceeds the Remaining Purchase Price
amount for such Payment Date, it shall reduce the Adjusted Down Payment
first, then be carried back second, then forward and the applicable
Remaining Purchase Price shall be adjusted. Likewise, in the event that
the Bucket Fill-Up Amount on any Payment Date exceeds the Terminated
Management Agreement Amount, it shall reinstate any reduction of the
Adjusted Down Payment first, then be carried back second, then forward,
and the remaining Purchase Price shall be adjusted, but not more than the
original amount due on the Payment Date. Any payment due from Seller for
a reduction in the Adjusted Down Payment or from Buyer for an increase in
the Adjusted Down Payment shall be paid by the party to the other
applicable party within fifteen (15) days from the applicable Payment
Date. The examples on Exhibit A are meant to reflect the parties’
understanding of these provisions.

The Remaining Purchase Price shall be evidenced by a promissory note in a form
reasonably acceptable to the Buyer and the Seller (the “Note”) and shall be
secured by all of the CGIM Shares pursuant to a secure agreement in a form
reasonably acceptable to the Buyer and the Seller (the “Security Agreement”).”

     2. Buyer and Seller agree that Section 2(g) of the Agreement is hereby
amended to change the reference to the date August 18, 2004 to August 19, 2004.

 

 

     3. Exhibit A to the Agreement is hereby deleted in its entirety, with a
substitute Exhibit A which incorporates the changes contemplated to Section
2(b) of the Agreement being substituted in its place for all purposes.

     4. Except as amended hereby, the Agreement shall remain in full force and
effect as written.

     5. Capitalized terms not defined herein shall have the meaning set forth
in the Agreement.

     6. This Amendment may be executed in several counterparts, and all so
executed shall constitute one agreement, binding on all parties hereto
notwithstanding that all of the parties are not signatories to the same
counterpart.

     EXECUTED as of the date first above written.

	 	 	 	 	 
	 	SELLER:

COVENANT GROUP OF TEXAS, INC.

 	 
	 	By:  	/s/ Robert Bullock
 	 
	 	 	Robert Bullock, Executive Vice President 	 
	 	 	 	 
	 
	 	BUYER:

CAPITAL SENIOR MANAGEMENT 1, INC.

 	 
	 	By:  	/s/ David R. Brickman
 	 
	 	 	David R. Brickman, Vice President

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