Document:

EX-4.7

Exhibit 4.7

 

PURCHASE CONTRACT AGREEMENT

between

AMERICAN INTERNATIONAL GROUP, INC.

and

THE BANK OF NEW YORK

as Purchase Contract Agent

Dated as of May 16, 2008

 

 

 

TABLE OF CONTENTS

	 	 	 	 	 	 	 
	Article I

	 
	 	 	 	 	 	 
	Definitions and Other Provisions of General Application

	 
	 	 	 	 	 	 
	Section 1.01

	 	Definitions
	 	 	1	 
	Section 1.02

	 	Compliance Certificates and Opinions
	 	 	14	 
	Section 1.03

	 	Form of Documents Delivered to Purchase Contract Agent
	 	 	14	 
	Section 1.04

	 	Acts of Holders; Record Dates
	 	 	15	 
	Section 1.05

	 	Notices
	 	 	16	 
	Section 1.06

	 	Notice to Holders; Waiver
	 	 	17	 
	Section 1.07

	 	Effect of Headings and Table of Contents
	 	 	17	 
	Section 1.08

	 	Successors and Assigns
	 	 	17	 
	Section 1.09

	 	Separability Clause
	 	 	17	 
	Section 1.10

	 	Benefits of Agreement
	 	 	18	 
	Section 1.11

	 	Governing Law
	 	 	18	 
	Section 1.12

	 	Legal Holidays
	 	 	18	 
	Section 1.13

	 	Counterparts
	 	 	18	 
	Section 1.14

	 	Inspection of Agreement
	 	 	19	 
	Section 1.15

	 	Appointment of Financial Institution as Agent for the Company
	 	 	19	 
	Section 1.16

	 	No Waiver
	 	 	19	 
	Section 1.17

	 	Force Majeure
	 	 	19	 
	 
	 	 	 	 	 	 
	Article II

	 
	 	 	 	 	 	 
	Certificate Forms

	 
	 	 	 	 	 	 
	Section 2.01

	 	Forms of Certificates Generally
	 	 	19	 
	Section 2.02

	 	Form of Purchase Contract Agent’s Certificate of Authentication
	 	 	20	 
	 
	 	 	 	 	 	 
	Article III

	 
	 	 	 	 	 	 
	The Equity Units

	 
	 	 	 	 	 	 
	Section 3.01

	 	Amount; Form and Denominations
	 	 	20	 
	Section 3.02

	 	Rights and Obligations Evidenced by the Certificates
	 	 	20	 
	Section 3.03

	 	Execution, Authentication, Delivery and Dating
	 	 	22	 
	Section 3.04

	 	Temporary Certificates
	 	 	22	 
	Section 3.05

	 	Registration; Registration of Transfer and Exchange
	 	 	23	 
	Section 3.06

	 	Notices to Holders
	 	 	24	 
	Section 3.07

	 	Book-Entry Interests
	 	 	24	 
	Section 3.08

	 	Appointment of Successor Depositary
	 	 	25	 
	Section 3.09

	 	Definitive Certificates
	 	 	25	 
	Section 3.10

	 	Mutilated, Destroyed, Lost and Stolen Certificates
	 	 	26	 
	Section 3.11

	 	Persons Deemed Owners
	 	 	27	 
	Section 3.12

	 	Cancellation
	 	 	27	 
	Section 3.13

	 	Creation of Treasury Units by Substitution of Qualifying Treasury Securities
	 	 	28	 

Purchase Contract Agreement

 

 

	 	 	 	 	 	 	 
	Section 3.14

	 	Recreation of Corporate Units
	 	 	29	 
	Section 3.15

	 	Transfer of Collateral upon Occurrence of Termination Event
	 	 	30	 
	Section 3.16

	 	No Consent to Assumption
	 	 	31	 
	Section 3.17

	 	CUSIP Numbers
	 	 	31	 
	 
	 	 	 	 	 	 
	Article IV

	 
	 	 	 	 	 	 
	The Debentures

	 
	Section 4.01

	 	Distributions; Rights to Distributions Preserved
	 	 	31	 
	Section 4.02

	 	Notice and Voting
	 	 	32	 
	 
	 	 	 	 	 	 
	Article V

	 
	 	 	 	 	 	 
	The Stock Purchase Contracts

	 
	 	 	 	 	 	 
	Section 5.01

	 	Purchase of Shares of Common Stock
	 	 	33	 
	Section 5.02

	 	Remarketing; Payment of Purchase Price
	 	 	34	 
	Section 5.03

	 	Issuance of Shares of Common Stock
	 	 	36	 
	Section 5.04

	 	Adjustment of Fixed Settlement Rates
	 	 	37	 
	Section 5.05

	 	Notice of Adjustments and Certain Other Events
	 	 	45	 
	Section 5.06

	 	Termination Event; Notice
	 	 	46	 
	Section 5.07

	 	Early Settlement
	 	 	46	 
	Section 5.08

	 	No Fractional Shares
	 	 	48	 
	Section 5.09

	 	Charges and Taxes
	 	 	49	 
	Section 5.10

	 	Contract Adjustment Payments
	 	 	49	 
	Section 5.11

	 	Deferral of Contract Adjustment Payments
	 	 	53	 
	 
	 	 	 	 	 	 
	Article VI

	 
	 	 	 	 	 	 
	Rights and Remedies of Holders

	 
	 	 	 	 	 	 
	Section 6.01

	 	Unconditional Right of Holders to Receive Contract Adjustment
Payments and to Purchase Shares of Common Stock
	 	 	54	 
	Section 6.02

	 	Restoration of Rights and Remedies
	 	 	55	 
	Section 6.03

	 	Rights and Remedies Cumulative
	 	 	55	 
	Section 6.04

	 	Delay or Omission Not Waiver
	 	 	55	 
	Section 6.05

	 	Undertaking for Costs
	 	 	55	 
	Section 6.06

	 	Waiver of Stay or Extension Laws
	 	 	55	 
	 
	 	 	 	 	 	 
	Article VII

	 
	 	 	 	 	 	 
	The Purchase Contract Agent

	 
	 	 	 	 	 	 
	Section 7.01

	 	Certain Duties and Responsibilities
	 	 	56	 
	Section 7.02

	 	Notice of Default
	 	 	57	 
	Section 7.03

	 	Certain Rights of Purchase Contract Agent
	 	 	57	 
	Section 7.04

	 	Not Responsible for Recitals or Issuance of Equity Units
	 	 	59	 
	Section 7.05

	 	May Hold Equity Units
	 	 	59	 

 Purchase Contract Agreement

ii

 

	 	 	 	 	 	 	 
	Section 7.06

	 	Money Held in Custody
	 	 	59	 
	Section 7.07

	 	Compensation and Reimbursement
	 	 	59	 
	Section 7.08

	 	Corporate Purchase Contract Agent Required, Eligibility
	 	 	60	 
	Section 7.09

	 	Resignation and Removal; Appointment of Successor
	 	 	60	 
	Section 7.10

	 	Acceptance of Appointment by Successor
	 	 	61	 
	Section 7.11

	 	Merger, Conversion, Consolidation or Succession to Business
	 	 	62	 
	Section 7.12

	 	Preservation of Information; Communications to Holders
	 	 	62	 
	Section 7.13

	 	No Obligations of Purchase Contract Agent
	 	 	63	 
	Section 7.14

	 	Tax Compliance
	 	 	63	 
	 
	 	 	 	 	 	 
	Article VIII

	 
	 	 	 	 	 	 
	Supplemental Agreements

	 
	 	 	 	 	 	 
	Section 8.01

	 	Supplemental Agreements without Consent of Holders
	 	 	64	 
	Section 8.02

	 	Supplemental Agreements with Consent of Holders
	 	 	64	 
	Section 8.03

	 	Execution of Supplemental Agreements
	 	 	65	 
	Section 8.04

	 	Effect of Supplemental Agreements
	 	 	65	 
	Section 8.05

	 	Reference to Supplemental Agreements
	 	 	66	 
	 
	 	 	 	 	 	 
	Article IX

	 
	 	 	 	 	 	 
	Consolidation, Merger, Conveyance, Transfer or Lease

	 
	 	 	 	 	 	 
	Section 9.01

	 	Covenant Not to Consolidate, Merge, Convey, Transfer or Lease
Property Except under Certain Conditions
	 	 	66	 
	Section 9.02

	 	Rights and Duties of Successor Person
	 	 	66	 
	Section 9.03

	 	Officers’ Certificate Given to Purchase Contract Agent
	 	 	67	 
	 
	 	 	 	 	 	 
	Article X

	 
	 	 	 	 	 	 
	Covenants

	 
	 	 	 	 	 	 
	Section 10.01

	 	Performance under Stock Purchase Contracts
	 	 	67	 
	Section 10.02

	 	Maintenance of Office or Agency
	 	 	67	 
	Section 10.03

	 	Company to Reserve Common Stock
	 	 	68	 
	Section 10.04

	 	Covenants as to Common Stock
	 	 	68	 
	Section 10.05

	 	Statements of Officers of the Company as to Default
	 	 	68	 
	Section 10.06

	 	ERISA
	 	 	68	 
	Section 10.07

	 	Tax Treatment
	 	 	68	 
	 
	 	 	 	 	 	 
	Exhibit A

	 	— Form of Corporate Unit	 	 	 	 
	Exhibit B

	 	—  Form of Treasury Unit	 	 	 	 
	Exhibit C 

	 	—  Form of Instruction to Purchase Contract Agent	 	 	 	 
	Exhibit D 

	 	—  Form of Notice of Termination Event	 	 	 	 
	Exhibit E 

	 	—  Form of Notice to Settle with Cash	 	 	 	 
	Exhibit F 

	 	—  Form of Notice to Collateral Agent	 	 	 	 

Purchase Contract Agreement

iii

 

     Purchase Contract Agreement, dated as of May 16, 2008, between American International
Group, Inc., a Delaware corporation (the “Company”), and The Bank of New York, a New York banking
corporation, acting as purchase contract agent for the Holders of Equity Units (as defined herein)
from time to time (the “Purchase Contract Agent”).

Recitals

     The Company has duly authorized the execution and delivery of this Agreement and the
Certificates (as defined herein) evidencing the Equity Units.

     All things necessary to make the Stock Purchase Contracts (as defined herein), when the
Certificates are executed by the Company and authenticated, executed on behalf of the Holders and
delivered by the Purchase Contract Agent, as provided in this Agreement, the valid and legally
binding obligations of the Company have been done. For and in consideration of the premises and
the purchase of the Equity Units by the Holders thereof, it is mutually agreed as follows:

ARTICLE I

DEFINITIONS AND OTHER PROVISIONS

OF GENERAL APPLICATION

     Section 1.01 Definitions.

     For all purposes of this Agreement, except as otherwise expressly provided or unless the
context otherwise requires:

     (a) the terms defined in this Article I have the meanings assigned to them in this Article I
and include the plural as well as the singular, and nouns and pronouns of the masculine gender
include the feminine and neuter genders;

     (b) all accounting terms not otherwise defined herein have the meanings assigned to them in
accordance with generally accepted accounting principles in the United States as in effect at the
time of the calculation to be made;

     (c) all references to an Article, Section or other subdivision or Exhibit refer to an Article,
Section or other subdivision of, or Exhibit to, this Agreement;

     (d) the words “herein,” “hereof” and “hereunder” and other words of similar import refer to
this Agreement as a whole and not to any particular Article, Section, Exhibit or other subdivision;
and

     (e) the following terms have the meanings given to them in this Section 1.01(e):

     “Additional Debentures” means junior subordinated debentures of the Company that will be
issued pursuant to the Base Indenture, in the Company’s sole discretion, as provided in
Section 5.11(c)(ii).

     “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” when used with respect to any specified Person means the
power to direct the
management and policies of such Person, directly or indirectly, whether through the ownership
of voting

Purchase Contract Agreement

 

 

securities, by contract or otherwise; and the terms “controlling” and “controlled” have
meanings correlative to the foregoing.

     “Agreement” means this instrument as originally executed or as it may from time to time be
supplemented or amended by one or more agreements supplemental hereto entered into pursuant to the
applicable provisions hereof.

     “Applicable Market Value” means, with respect to any Stock Purchase Date, the average of the
VWAP per share of Common Stock (or Exchange Property Units in which the Stock Purchase Contracts
will be settled following a Reorganization Event) on each of the 20 consecutive Trading Days in the
applicable Observation Period. For purposes of calculating the Exchange Property Unit value, (x)
the value of any common stock included in the Exchange Property Unit will be determined using the
average of the VWAP per share of such common stock on each of the 20 consecutive Trading Days in
the applicable Observation Period, and (y) the value of any other property, including securities
other than common stock, included in the Exchange Property Unit will be the value of such property
on the first Trading Day of the applicable Observation Period (as determined in good faith by the
Board of Directors, whose determination shall be conclusive and described in a Board Resolution).

     “Bankruptcy Code” means Title 11 of the United States Code, or any other law of the United
States that from time to time provides a uniform system of bankruptcy laws.

     “Base Indenture” means the Junior Subordinated Debt Indenture, dated as of March 13, 2007,
between the Company and the Trustee, as amended or supplemented from time to time.

     “Beneficial Owner” means, with respect to a Book-Entry Interest, a Person who is the
beneficial owner of such Book-Entry Interest as reflected on the books of the Depositary or on the
books of a Person maintaining an account with such Depositary (directly as a Depositary Participant
or as an indirect participant, in each case in accordance with the rules of such Depositary).

     “Blackout Period” means any period following the close of business on the second Business Day
immediately preceding the first day of any Remarketing Period for any series of Debentures and
ending on the last day of such Remarketing Period or, if a Successful Remarketing occurs during
such Remarketing Period, the applicable Stock Purchase Date.

     “Board of Directors” means the board of directors of the Company or a duly authorized
committee of that board.

     “Board Resolution” means one or more resolutions of the Board of Directors, a copy of which
has been certified by the Secretary or an Assistant Secretary of the Company, to have been duly
adopted by the Board of Directors and to be in full force and effect on the date of such
certification and delivered to the Purchase Contract Agent.

     “Book-Entry Interest” means a beneficial interest in a Global Certificate, registered in the
name of a Depositary or a nominee thereof, ownership and transfers of which shall be maintained and
made through book entries by such Depositary as described in Section 3.07.

     “Business Day” means a day other than a Saturday, Sunday or any other day on which banking
institutions and trust companies in New York City are authorized or required by any applicable law
to close.

Purchase Contract Agreement

2

 

     “Certificate” means a Corporate Unit Certificate or a Treasury Unit Certificate.

     “Closing Price” of the Common Stock on any date of determination means the last reported sale
price of the Common Stock on the NYSE on that date. If the Common Stock is not listed for trading
on the NYSE on any date of determination, the closing price of the Common Stock on such date of
determination means the closing sale price as reported in the composite transactions for the
principal U.S. securities exchange on which the Common Stock is listed, or, if the Common Stock is
not so reported, the market value of the Common Stock on that date as determined by a nationally
recognized independent investment banking firm retained by the Company for this purpose.

     “Code” means the Internal Revenue Code of 1986, as amended from time to time, and
administrative guidance and the regulations promulgated thereunder.

     “Collateral Agent” means Wilmington Trust Company, as Collateral Agent under the Pledge
Agreement until a successor Collateral Agent shall have become appointed as such pursuant to the
applicable provisions of the Pledge Agreement, and thereafter “Collateral Agent” shall mean the
Person who is then the Collateral Agent thereunder.

     “Collateral Substitution” means (i) with respect to Corporate Units, the substitution of the
Pledged Debentures included in such Corporate Units with the applicable Qualifying Treasury
Securities in an aggregate principal amount at maturity equal to the aggregate Principal Amount of
such Pledged Debentures, or (ii) with respect to Treasury Units, the substitution for the Pledged
Treasury Securities included in such Treasury Units with the applicable Debentures in an aggregate
Principal Amount equal to the aggregate principal amount at maturity of the Pledged Treasury
Securities.

     “Common Stock” means the common stock, par value $2.50 per share, of the Company.

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

     “Contract Adjustment Payments” means the payments payable by the Company in arrears on the
Payment Dates in respect of each Stock Purchase Contract that are accrued but unpaid prior to each
such date:

     (i) from and including May 16, 2008 to but excluding the First Stock Purchase Date, at
the annual rate of 2.7067% on the initial Stated Amount of $75 per Stock Purchase Contract;

     (ii) from and including the First Stock Purchase Date to but excluding the Second Stock
Purchase Date, at the annual rate of 2.6450% on the adjusted Stated Amount of $50 per Stock
Purchase Contract; and

     (iii) from and including the Second Stock Purchase Date to but excluding the Third
Stock Purchase Date, at the annual rate of 2.6100% on the adjusted Stated Amount of $25 per
Stock Purchase Contract.

     “Corporate Trust Office” means the principal office of the Purchase Contract Agent at which at
any time its corporate trust business shall be administered, which office at the date hereof is
located at 101 Barclay Street, Floor 8 West, New York, New York 10286, Attention: Corporate Trust

Purchase Contract Agreement

3

 

Administration, or such other address as the Purchase Contract Agent may designate from time to
time by notice to the Holders and the Company, or the principal corporate trust office of any
successor Purchase Contract Agent (or such other address as such successor Purchase Contract Agent
may designate from time to time by notice to the Holders and the Company).

     “Corporate Unit” means the collective rights and obligations of a Holder of a Corporate Unit
Certificate in respect of:

(i) (1) at all times prior to the First Stock Purchase Date or, if earlier, the First
Remarketing Settlement Date, a 1/40 undivided beneficial interest in a Series B-1 Debenture,

	 	(2)	 	at all times prior to the Second Stock Purchase Date or, if
earlier, the Second Remarketing Settlement Date, a 1/40 undivided beneficial
interest in a Series B-2 Debenture,
	 
	 	(3)	 	at all times prior to the Third Stock Purchase Date or, if
earlier, the Third Remarketing Settlement Date, a 1/40 undivided beneficial
interest in a Series B-3 Debenture, and
	 
	 	(4)	 	after the Remarketing Settlement Date for any series of
Debentures and prior to the applicable Stock Purchase Date, the undivided
beneficial ownership interest corresponding to one Corporate Unit in the
Treasury Portfolio purchased with the net proceeds of the Remarketing, and

(ii) the related Stock Purchase Contract.

The Debentures comprising part of a Corporate Unit at any time are referred to as the “applicable
series of Debentures.”

     “Corporate Unit Certificate” means a certificate evidencing the rights and obligations of a
Holder in respect of the number of Corporate Units specified on such certificate.

     “Current Market Price” means, in respect of a share of Common Stock on any day of
determination, the average of the VWAP per share of Common Stock over each of the 10 consecutive
Trading Days ending on the earlier of the day in question and the day before the “ex date” with
respect to the issuance or distribution requiring such computation. For purposes of this
definition, the term “ex date,” when used with respect to any issuance or distribution, shall mean
the first date on which the shares of Common Stock trade on the applicable exchange or in the
applicable market, regular way, without the right to receive such issuance or distribution.

     “Custodial Agent” means Wilmington Trust Company, as Custodial Agent under the Pledge
Agreement until a successor Custodial Agent shall have become such pursuant to the applicable
provisions of the Pledge Agreement, and thereafter “Custodial Agent” shall mean the Person who is
then the Custodial Agent thereunder.

     “Debentures” means, collectively, the Series B-1 Debentures, the Series B-2 Debentures and the
Series B-3 Debentures.

Purchase Contract Agreement

4

 

     “Depositary” means a clearing agency registered under Section 17A of the Exchange Act that is
designated to act as Depositary for the Equity Units as contemplated by Sections 3.07 and 3.08 or
its nominee.

     “Depositary Participant” means a broker, dealer, bank, other financial institution or other
Person for whom from time to time the Depositary effects book entry transfers and pledges of
securities deposited with the Depositary.

     “DTC” means The Depository Trust Company.

     “Equity Units” means Corporate Units or Treasury Units, as applicable.

     “ERISA” means the Employee Retirement Income Security Act of 1974, as amended from time to
time, and the rules and regulations promulgated thereunder.

     “Exchange Act” means the Securities Exchange Act of 1934 and any statute successor thereto, in
each case as amended from time to time, and the rules and regulations promulgated thereunder.

     “Failed Remarketing,” in respect of a series of Debentures, has the meaning set forth in the
applicable Supplemental Indenture.

     “First Qualifying Treasury Security” means a zero-coupon U.S. Treasury security (CUSIP No.
912820GC5) having a principal amount of $1,000 and maturing on February 15, 2011.

     “First Remarketing Settlement Date” means the third Business Day immediately succeeding the
date of a Successful Remarketing of the Series B-1 Debentures.

     “First Stock Purchase Date” means February 15, 2011.

     “Fixed Settlement Rates” means the Maximum Settlement Rate and the Minimum Settlement Rate,
collectively.

     “Global Certificate” means a Certificate that evidences all or part of the Equity Units and is
registered in the name of the Depositary or a nominee thereof.

     “Holder” means, with respect to an Equity Unit, the Person in whose name the Equity Unit
evidenced by a Certificate is registered in the Security Register.

     “Indenture” means, with respect to any series of Debentures, the Base Indenture and the
applicable Supplemental Indenture, taken together.

     “Interest Payment Date” for each series of Debentures means the Interest Payment Date set
forth in the applicable Supplemental Indenture.

     “Issuer Order” or “Issuer Request” means a written order or request signed in the name of the
Company by its Chairman, its President, a Senior Vice President or a Vice President and by its
Treasurer,
an Assistant Treasurer, its Secretary or an Assistant Secretary, and delivered to the Purchase
Contract Agent.

Purchase Contract Agreement

5

 

     “Make-Whole Shares” means, with respect to a Cash Merger Early Settlement, a number of shares
of Common Stock (for the purpose of this definition, the “make-whole share amount”) determined for
each Stock Purchase Contract being settled by reference to the table below based on the date on
which the Cash Merger becomes effective (for the purposes of this definition, the “effective date”)
and the price (for the purposes of this definition, the “stock price”) paid per share for Common
Stock in such Cash Merger. If holders of Common Stock receive only cash in such transaction, the
stock price shall be the cash amount paid per share. Otherwise, the stock price shall be the
average of the Closing Prices per share of Common Stock on each of the 20 consecutive Trading Days
ending on the Trading Day immediately preceding the effective date of such Cash Merger.

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	Stock Prices
	Effective Date	 	$10.00	 	$20.00	 	$30.00	 	$38.00	 	$40.00	 	$45.60	 	$50.00	 	$60.00	 	$70.00	 	$80.00	 	$120.00
	May 12, 2008
	 	 	1.3942	 	 	 	0.5204	 	 	 	0.1887	 	 	 	0.0000	 	 	 	0.1127	 	 	 	0.2722	 	 	 	0.2385	 	 	 	0.1711	 	 	 	0.1252	 	 	 	0.0927	 	 	 	0.0274	 
	May 1, 2009
	 	 	1.0158	 	 	 	0.3821	 	 	 	0.1118	 	 	 	0.0000	 	 	 	0.0574	 	 	 	0.2274	 	 	 	0.1949	 	 	 	0.1360	 	 	 	0.0970	 	 	 	0.0702	 	 	 	0.0188	 
	May 1, 2010
	 	 	0.5516	 	 	 	0.2212	 	 	 	0.0350	 	 	 	0.0000	 	 	 	0.0035	 	 	 	0.1707	 	 	 	0.1370	 	 	 	0.0860	 	 	 	0.0565	 	 	 	0.0387	 	 	 	0.0090	 
	February 15, 2011
	 	 	0.1389	 	 	 	0.0618	 	 	 	0.0069	 	 	 	0.0000	 	 	 	0.0000	 	 	 	0.0841	 	 	 	0.0532	 	 	 	0.0234	 	 	 	0.0132	 	 	 	0.0089	 	 	 	0.0021	 
	February 16, 2011
	 	 	0.1374	 	 	 	0.0611	 	 	 	0.0067	 	 	 	0.0000	 	 	 	0.0000	 	 	 	0.0851	 	 	 	0.0528	 	 	 	0.0232	 	 	 	0.0131	 	 	 	0.0088	 	 	 	0.0021	 
	May 1, 2011
	 	 	0.0582	 	 	 	0.0261	 	 	 	0.0038	 	 	 	0.0000	 	 	 	0.0000	 	 	 	0.0393	 	 	 	0.0263	 	 	 	0.0092	 	 	 	0.0049	 	 	 	0.0033	 	 	 	0.0006	 
	May 2, 2011
	 	 	0.0527	 	 	 	0.0238	 	 	 	0.0026	 	 	 	0.0000	 	 	 	0.0000	 	 	 	0.0359	 	 	 	0.0232	 	 	 	0.0087	 	 	 	0.0046	 	 	 	0.0032	 	 	 	0.0007	 
	August 1, 2011
	 	 	0.0000	 	 	 	0.0000	 	 	 	0.0000	 	 	 	0.0000	 	 	 	0.0000	 	 	 	0.0000	 	 	 	0.0000	 	 	 	0.0000	 	 	 	0.0000	 	 	 	0.0000	 	 	 	0.0000	 

     The stock prices and make-whole share amounts set forth in the table shall be subject to
adjustment as set forth in Section 5.04(a).

     If the exact stock price and effective date applicable to a Cash Merger is not set forth on
the table, then:

	 	(i)	 	if the stock price is between two stock price amounts on the table or the
effective date is between two dates on the table, the amount of Make-Whole Shares shall
be determined by straight line interpolation between the make-whole share amounts set
forth for the higher and lower stock price amounts and the two dates, as applicable,
based on a 360-day year;
	 
	 	(ii)	 	if the stock price is in excess of $120.00 per share (subject to adjustment as
set forth in Section 5.04(a)), then the make-whole share amount shall be zero; and

	 	(iii)	 	if the stock price is less than $10.00 per share (subject to adjustment as set
forth in Section 5.04(a)), for purposes of this definition the “minimum stock price,”
then the make-whole share amount shall be determined as if the stock price equaled the
minimum stock price, using straight line interpolation, as described under (i) above,
if the effective date is between two dates on the table.

     “Maximum Settlement Rate” means 0.6579, which is approximately equal to $25 divided by the
Reference Price, as adjusted from time to time pursuant to Section 5.04.

     “Minimum Settlement Rate” means 0.54823, which is approximately equal to $25 divided by the
Threshold Appreciation Price, as adjusted from time to time pursuant to Section 5.04.

     “NYSE” means The New York Stock Exchange, Inc.

Purchase Contract Agreement

6

 

     “Observation Period” means, with respect to any Stock Purchase Date or Cash Merger Early
Settlement Date, the 20 consecutive Trading Day period ending on the third Trading Day immediately
preceding such Stock Purchase Date or Cash Merger Early Settlement Date.

     “Officers’ Certificate” means a certificate signed by the Company’s Chairman or a Vice
Chairman of the Board, its President, a Senior Vice President or a Vice President and by its
Treasurer, an Assistant Treasurer, its Secretary or an Assistant Secretary, and delivered to the
Purchase Contract Agent.

     “Opinion of Counsel” means a written opinion of counsel, who may be counsel to the Company
(and who may be an employee of the Company). An Opinion of Counsel may rely on certificates as to
matters of fact.

     “Outstanding Equity Units” means, as of the date of determination, all Equity Units evidenced
by Certificates theretofore authenticated, executed and delivered under this Agreement, except:

     (i) if a Termination Event has occurred, (x) Corporate Units for which the underlying
Debentures have been theretofore deposited with the Purchase Contract Agent in trust for the
Holders of such Corporate Units and (y) Treasury Units;

     (ii) Equity Units evidenced by Certificates theretofore cancelled by the Purchase
Contract Agent or delivered to the Purchase Contract Agent for cancellation or deemed
cancelled pursuant to the provisions of this Agreement; and

     (iii) Equity Units evidenced by Certificates in exchange for or in lieu of which other
Certificates have been authenticated, executed on behalf of the Holder and delivered
pursuant to this Agreement, other than any such Certificate in respect of which there shall
have been presented to the Purchase Contract Agent proof satisfactory to it that such
Certificate is held by a protected purchaser (within the meaning of the UCC) in whose hands
the Equity Units evidenced by such Certificate are valid obligations of the Company;

provided, however, that in determining whether the Holders of the requisite number of the Equity
Units have given any request, demand, authorization, direction, notice, consent or waiver
hereunder, Equity Units owned by the Company or any Affiliate of the Company shall be disregarded
and deemed not to be Outstanding Equity Units, except that, in determining whether the Purchase
Contract Agent shall be authorized and protected in relying upon any such request, demand,
authorization, direction, notice, consent or waiver, only Equity Units that a Responsible Officer
of the Purchase Contract Agent actually knows to be so owned shall be so disregarded. Equity Units
so owned that have been pledged in good faith may be regarded as Outstanding Equity Units if the
pledgee establishes to the satisfaction of the Purchase Contract Agent the pledgee’s right so to
act with respect to such Equity Units and that the pledgee is not the Company or any Affiliate of
the Company. “Outstanding Corporate Units” means Corporate Units that are Outstanding Equity
Units, and “Outstanding Treasury Units” means Treasury Units that are Outstanding Equity Units.

     “Payment Date” means each February 1, May 1, August 1 and November 1 of each year, commencing
August 1, 2008.

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

Purchase Contract Agreement

7

 

     “Plan” means an employee benefit plan that is subject to ERISA, a plan or individual
retirement account that is subject to Section 4975 of the Code or any entity whose assets are
considered assets of any such plan.

     “Pledge” means the pledge under the Pledge Agreement of the Debentures, the Pledged Treasury
Portfolio or the Qualifying Treasury Securities, as the case may be, in each case constituting a
part of the Equity Units.

     “Pledge Agreement” means the Pledge Agreement, dated as of the date hereof, among the Company,
Wilmington Trust Company, as Collateral Agent, Custodial Agent and Securities Intermediary, and the
Purchase Contract Agent, on its own behalf and as attorney-in-fact for the Holders from time to
time of the Equity Units, as amended from time to time.

     “Predecessor Corporate Unit Certificate,” of any particular Corporate Unit Certificate, means
every previous Corporate Unit Certificate evidencing all or a portion of the rights and obligations
of the Company and the Holder under the Corporate Units evidenced thereby; and, for the purposes of
this definition, any Corporate Unit Certificate authenticated and delivered under Section 3.10 in
exchange for or in lieu of a mutilated, destroyed, lost or stolen Corporate Unit Certificate shall
be deemed to evidence the same rights and obligations of the Company and the Holder as the
mutilated, destroyed, lost or stolen Corporate Unit Certificate.

     “Predecessor Treasury Unit Certificate,” of any particular Treasury Unit Certificate, means
every previous Treasury Unit Certificate evidencing all or a portion of the rights and obligations
of the Company and the Holder under the Treasury Units evidenced thereby; and, for the purposes of
this definition, any Treasury Unit Certificate authenticated and delivered under Section 3.10 in
exchange for or in lieu of a mutilated, destroyed, lost or stolen Treasury Unit Certificate shall
be deemed to evidence the same rights and obligations of the Company and the Holder as the
mutilated, destroyed, lost or stolen Treasury Unit Certificate.

     “Principal Amount” in respect of a series of Debentures, means the principal amount of such
Debentures payable at the final stated maturity.

     “Prospectus” means the prospectus relating to the delivery of shares or any securities in
connection with an Early Settlement pursuant to Section 5.07 or a Cash Merger Early Settlement of
Stock Purchase Contracts pursuant to Section 5.04(b)(ii), in the form in which first filed, or
transmitted for filing, with the Securities and Exchange Commission after the effective date of the
Registration Statement pursuant to Rule 424(b) under the Securities Act, including the documents
incorporated by reference therein as of the date of such Prospectus.

     “Purchase Contract Agent” means the Person named as the “Purchase Contract Agent” in the first
paragraph of this Agreement until a successor Purchase Contract Agent shall have become such
pursuant to the applicable provisions of this Agreement, and thereafter “Purchase Contract Agent”
shall mean such Person or any subsequent successor who is appointed pursuant to this Agreement.

     “Qualifying Treasury Securities” means the First Qualifying Treasury Securities, the Second
Qualifying Treasury Securities and the Third Qualifying Treasury Securities (each, a “Qualifying
Treasury Security”), and “applicable Qualifying Treasury Securities” at any time means the
Qualifying Treasury Securities comprising part of a Treasury Unit at such time.

Purchase Contract Agreement

8

 

     “Quotation Agent” means any primary U.S. government securities dealer in New York City
selected by the Company.

     “Record Date” for any distribution and Contract Adjustment Payment payable on any Payment Date
means the 15th day of the calendar month preceding the calendar month in which the relevant Payment
Date falls.

     “Reference Price” means $38.00.

     “Registration Statement” means a registration statement under the Securities Act prepared by
the Company covering, inter alia, the delivery by the Company of any securities in connection with
an Early Settlement on the Early Settlement Date or a Cash Merger Early Settlement of Stock
Purchase Contracts on the Cash Merger Early Settlement Date under Section 5.04(b)(ii), including
all exhibits thereto and the documents incorporated by reference in the Prospectus contained in
such registration statement, and any post-effective amendments thereto.

     “Remarketing,” in respect of a series of Debentures, has the meaning set forth in the
Supplemental Indenture related to that series of Debentures.

     “Remarketing Agent”, in respect of a series of Debentures, has the meaning set forth in the
Supplemental Indenture related to that series of Debentures.

     “Remarketing Agent’s Fee,” in respect of a series of Debentures, has the meaning set forth in
the Supplemental Indenture related to that series of Debentures.

     “Remarketing Agreement” means a Remarketing Agreement, dated as of the date hereof, among the
Company, Citigroup Global Markets Inc.; J.P. Morgan Securities Inc. and the Purchase Contract
Agent, as amended from time to time.

     “Remarketing Period,” in respect of a series of Debentures, means the 30-day period ending on
the date that is not less than three Business Days prior to the date one month before the
applicable Stock Purchase Date, as specified by the Company.

     “Remarketing Period Start Date,” in respect of any Remarketing Period, means the first day of
such Remarketing Period.

     “Remarketing Price per Debenture” means, with respect to each $1,000 Principal Amount of
Debentures of any series, an amount in cash equal to the quotient of the Treasury Portfolio
Purchase Price divided by the number of Debentures of such series, each $1,000 Principal Amount of
such Debentures being one Debenture, included in the applicable Remarketing that are held as
components of Corporate Units.

     “Remarketing Settlement Date” means, as applicable, the First Remarketing Settlement Date, the
Second Remarketing Settlement Date or the Third Remarketing Settlement Date.

     “Responsible Officer” shall mean, when used with respect to the Purchase Contract Agent, any
officer within the corporate trust department of the Purchase Contract Agent, including any vice
president, assistant vice president, assistant secretary, assistant treasurer, trust officer or any
other officer of the Purchase Contract Agent who customarily performs functions similar to those
performed by the Persons

Purchase Contract Agreement

9

 

who at the time shall be such officers, respectively, or to whom any
corporate trust matter is referred because of such person’s knowledge of and familiarity with the
particular subject and who shall have direct responsibility for the administration of this Purchase
Contract Agreement.

     “Second Qualifying Treasury Security” means a zero-coupon U.S. Treasury security (CUSIP No.
912820NA1) having a principal amount of $1,000 and maturing on April 30, 2011.

     “Second Remarketing Settlement Date” means the third Business Day immediately succeeding the
date of a Successful Remarketing of the Series B-2 Debentures.

     “Second Stock Purchase Date” means May 1, 2011.

     “Securities Act” means the Securities Act of 1933, and any statute successor thereto, in each
case as amended from time to time, and the rules and regulations promulgated thereunder.

     “Securities Intermediary” means Wilmington Trust Company, as Securities Intermediary under the
Pledge Agreement until a successor Securities Intermediary shall have become such pursuant to the
applicable provisions of the Pledge Agreement, and thereafter “Securities Intermediary” shall mean
such successor or any subsequent successor who is appointed pursuant to the Pledge Agreement.

     “Separate Debentures” means Debentures that are no longer a component of Corporate Units and
are included in a Remarketing pursuant to Section 5.02(a)(iii).

     “Separate Debentures Purchase Price” means, with respect to any Remarketing, the amount in
cash equal to the product of (i) the Remarketing Price per Debenture and (ii) the number of
Separate Debentures included in such Remarketing.

     “Series B-1 Debentures” means the 5.67% Series B-1 Junior Subordinated Debentures due
February 15, 2041 of the Company.

     “Series B-2 Debentures” means the 5.82% Series B-2 Junior Subordinated Debentures due May 1,
2041 of the Company.

     “Series B-3 Debentures” means the 5.89% Series B-3 Junior Subordinated Debentures due
August 1, 2041 of the Company.

     “Series of Debentures” means each of the Series B-1 Debentures, Series B-2 Debentures or
Series B-3 Debentures.

     “Stated Amount” means, with respect to any one Corporate Unit or Treasury Unit:

     (i) from and including May 16, 2008 to but excluding the First Stock Purchase Date,
$75.00;

     (ii) from and including the First Stock Purchase Date to but excluding the Second Stock
Purchase Date, $50.00; and

     (iii) from and including the Second Stock Purchase Date to but excluding the Third
Stock Purchase Date, $25.00.

Purchase Contract Agreement

10

 

     “Stock Purchase Contract” means, with respect to any Equity Unit, the contract forming a part
of such Equity Unit and obligating (i) the Company to sell, and the Holder of such Equity Unit to
purchase, shares of Common Stock on each Stock Purchase Date and (ii) the Company to pay the Holder
thereof Contract Adjustment Payments, in each case on the terms and subject to the conditions set
forth in Article V.

     “Stock Purchase Date” means, as applicable, the First Stock Purchase Date, the Second Stock
Purchase Date or the Third Stock Purchase Date. When used in connection with any series of
Debentures, the term “applicable Stock Purchase Date” means the First Stock Purchase Date in the
case of the Series B-1 Debentures, the Second Stock Purchase Date in the case of the Series B-2
Debentures and the Third Stock Purchase Date in the case of the Series B-3 Debentures.

     “Successful,” in respect of the Remarketing of a series of Debentures, has the meaning set
forth in the applicable Supplemental Indenture.

     “Supplemental Indenture” means:

     (i) with respect to the Series B-1 Debentures, the Sixth Supplemental Indenture to the
Base Indenture;

     (ii) with respect to the Series B-2 Debentures, the Seventh Supplemental Indenture to
the Base Indenture; and

     (iii) with respect to the Series B-3 Debentures, the Eighth Supplemental Indenture to
the Base Indenture;

each dated as of the date hereof, between the Company and the Trustee, as amended or supplemented
from time to time. When used in connection with any series of Debentures, the term “applicable
Supplemental Indenture” means the Supplemental Indenture under which such series of Debentures is
issued.

     “Termination Date” means the date, if any, on which a Termination Event occurs.

     “Termination Event” means the occurrence of any of the following events:

     (i) at any time on or prior to the Third Stock Purchase Date, a judgment, decree or
court order shall have been entered granting relief under the Bankruptcy Code, adjudicating
the Company to be insolvent, or approving as properly filed a petition seeking
reorganization or liquidation of the Company or any other similar applicable federal or
state law and if such judgment, decree or order shall have been entered more than 60 days
prior to the Third Stock Purchase Date, such decree or order shall have continued
undischarged and unstayed for a period of 60 days;

     (ii) at any time on or prior to the Third Stock Purchase Date, a judgment, decree or
court order for the appointment of a receiver or liquidator or trustee or assignee in
bankruptcy or insolvency of the Company or of its property, or for the termination or
liquidation of its affairs, shall have been entered and if such judgment, decree or order
shall have been entered more than 60 days prior to the Third Stock Purchase Date, such
judgment, decree or order shall have continued undischarged and unstayed for a period of 60
days; or

Purchase Contract Agreement

11

 

     (iii) at any time on or prior to the Third Stock Purchase Date, the Company shall file
a petition for relief under the Bankruptcy Code, or shall consent to the filing of a
bankruptcy proceeding against it, or shall file a petition or answer or consent seeking
reorganization or liquidation under the Bankruptcy Code or any other similar applicable
federal or state law, or shall consent to the filing of any such petition, or shall consent
to the appointment of a receiver or liquidator or trustee or assignee in bankruptcy or
insolvency of it or of its property, or shall make an assignment for the benefit of
creditors, or shall admit in writing its inability to pay its debts generally as they become
due.

     “Third Qualifying Treasury Security” means a zero-coupon U.S. Treasury security (CUSIP No.
912820NK9) having a principal amount of $1,000 and maturing on July 31, 2011.

     “Third Remarketing Settlement Date” means the third Business Day immediately succeeding the
date of a Successful Remarketing of the Series B-3 Debentures.

     “Third Stock Purchase Date” means August 1, 2011.

     “Threshold Appreciation Price” means $45.60 per share of Common Stock.

     “Trading Day” means a day on which the Common Stock (i) at the close of regular way trading
(not including extended or after hours trading) is not suspended from trading on any national or
regional securities exchange or association or over-the-counter market that is the primary market
for the trading the Common Stock at the close of business, and (ii) has traded at least once
regular way on the national securities exchange or association or over-the-counter market that is
the primary market for the trading of the Common Stock.

     “Treasury Portfolio” means, with respect to each Remarketing Settlement Date, a portfolio
consisting of:

     (i) U.S. Treasury securities (or principal or interest strips thereof) that mature on
or prior to the applicable Stock Purchase Date in an aggregate amount at maturity equal to
the product of $25 and the number of Corporate Units outstanding;

     (ii) solely with respect to the First Remarketing Settlement Date, U.S. Treasury
securities (or principal or interest strips thereof) that mature on or prior to the Interest
Payment Date immediately succeeding the commencement of the Remarketing Period in an
aggregate amount at maturity equal to the aggregate interest that would have accrued from
and including the Interest Payment Date immediately preceding the commencement of the
Remarketing Period to but excluding such Interest Payment Date (assuming no reset of the
interest rate) on the aggregate Principal Amount of the Series B-1 Debentures equal to $25
for each Corporate Unit outstanding; and

     (iii) U.S. Treasury securities (or principal or interest strips thereof) that mature on
or prior to the applicable Stock Purchase Date in an aggregate amount at maturity equal to
the aggregate interest that would have accrued from and including the applicable Interest
Payment Date immediately preceding such Remarketing Settlement Date (or, solely with respect
to the First Remarketing Settlement Date, immediately succeeding such Remarketing Settlement
Date) to but excluding the applicable Stock Purchase Date (assuming no reset of the interest
rate) on the

Purchase Contract Agreement

12

 

aggregate Principal Amount of the Series B-1 Debentures equal to $25 for each
Corporate Unit outstanding;

provided that if the Company in its sole discretion determines that such U.S. Treasury securities
are unavailable, the Company may substitute one or more short-term discount obligations issued by
an Affiliate of the Company that are issued on the applicable Remarketing Settlement Date, accrete
interest at an arm’s length rate, have the same aggregate principal amount at maturity as the U.S.
Treasury securities for which they are substituted and mature on or prior to the applicable dates
referred to above.

     “Treasury Portfolio Purchase Price” means, with respect to each Remarketing Settlement Date,
the lowest aggregate ask-side price quoted by a primary U.S. government securities dealer to the
Quotation Agent between 9:00 a.m. and 11:00 a.m., New York City time, on the date of a Successful
Remarketing for the purchase of the Treasury Portfolio for settlement on the applicable Remarketing
Settlement Date.

     “Treasury Units” means, following the substitution of Qualifying Treasury Securities for
Debentures as collateral to secure a Holder’s obligations under the applicable Stock Purchase
Contract, the collective rights and obligations of a Holder of a Treasury Unit Certificate in
respect of such Treasury Securities, subject to the Pledge thereof, and the related Stock Purchase
Contract.

     “Treasury Unit Certificate” means a certificate evidencing the rights and obligations of a
Holder in respect of the number of Treasury Units specified on such certificate.

     “Trustee” means The Bank of New York, as trustee pursuant to the Indenture, or its successor
in interest in such capacity, or any successor trustee appointed as provided in the Indenture.

     “Vice President” means any vice president, whether or not designated by a number or a word or
words added before or after the title “Vice President.”

     “VWAP” per share of the Common Stock on any Trading Day means the per share volume weighted
average price as displayed on Bloomberg (or any successor service) page AIG UN <Equity> AQR
in respect of the period from 9:30 a.m. to 4:00 p.m., New York City time, on the relevant Trading
Day; or, if such volume weighted average price is unavailable, VWAP means the market value per
share of Common Stock on such Trading Day as determined by a nationally recognized independent
investment banking firm retained for this purpose by the Company.

     (f) The following terms have the meanings set forth in the Section of this Agreement or in the
other agreement set forth below.

	 	 	 
	Act

	 	Section 1.04(a)
	Applicants

	 	Section 7.12(b)
	Cash Merger

	 	Section 5.04(b)(ii)
	Cash Merger Early Settlement

	 	Section 5.04(b)(ii)
	Cash Merger Early Settlement Date

	 	Section 5.04(b)(ii)
	Cash Merger Early Settlement Right

	 	Section 5.04(b)(ii)
	Collateral

	 	Pledge Agreement
	Collateral Account

	 	Pledge Agreement
	Constituent Person

	 	Section 5.04(b)(i)
	Deferred Contract Adjustment Payments

	 	Section 5.11(a)

Purchase Contract Agreement

13

 

	 	 	 
	Dividend Threshold Amount

	 	Section 5.04(a)(iv)
	Early Settlement

	 	Section 5.07(a)
	Early Settlement Amount

	 	Section 5.07(b)
	Early Settlement Date

	 	Section 5.07(b)
	Early Settlement Rate

	 	Section 5.07(c)
	Event of Default

	 	Indenture
	Exchange Property Unit

	 	Section 5.04(b)(i)
	expiration date

	 	Section 5.04(a)(v)
	Expiration Date

	 	Section 1.04(e)
	Expiration Time

	 	Section 5.04(a)(v)
	final judgment

	 	Section 5.10(g)
	Indemnitees

	 	Section 7.07(c)
	Pledged Debentures

	 	Pledge Agreement
	Pledged Treasury Securities

	 	Pledge Agreement
	Proceeds

	 	Pledge Agreement
	Purchase Price

	 	Section 5.01(a)
	Purchased Shares

	 	Section 5.04(a)(v)
	record date

	 	Section 5.04(a)
	Reorganization Event

	 	Section 5.04(b)(i)
	Security Register

	 	Section 3.05
	Security Registrar

	 	Section 3.05
	Senior Debt

	 	Each Supplemental Indenture
	Settlement Rate

	 	Section 5.01(a)
	Settlement with Cash

	 	Section 5.02(b)
	Special Record Date

	 	Section 5.11(b)
	Stock Purchase Contract Settlement Fund

	 	Section 5.03
	UCC

	 	Pledge Agreement

     Section 1.02 Compliance Certificates and Opinions.

     Except as otherwise expressly provided by this Agreement, upon any application or request by
the Company to the Purchase Contract Agent to take any action in accordance with any provision of
this Agreement, the Company shall furnish to the Purchase Contract Agent an Officers’ Certificate
stating that all conditions precedent, if any, provided for in this Agreement relating to the
proposed action have been complied with, if requested by the Purchase Contract Agent.

     Section 1.03 Form of Documents Delivered to Purchase Contract Agent.

     In any case where several matters are required to be certified by, or covered by an opinion
of, any specified Person, it is not necessary that all such matters be certified by, or covered by
the opinion of, only one such Person, or that they be so certified or covered by only one document,
but one such Person
may certify or give an opinion with respect to some matters and one or more other such Persons
as to other matters, and any such Person may certify or give an opinion as to such matters in one
or several documents. Any certificate or opinion of an officer of the Company may be based, insofar
as it relates to legal matters, upon a certificate or opinion of, or representations by, counsel,
unless such officer knows, or in the exercise of reasonable care should know, that the certificate
or opinion or representations with respect to the matters upon which its certificate or opinion is
based are erroneous. Any such certificate or

Purchase Contract Agreement

14

 

Opinion of Counsel may be based, insofar as it
relates to factual matters, upon a certificate or opinion of, or representations by, an officer or
officers of the Company unless such counsel knows, or in the exercise of reasonable care should
know, that the certificate or opinion or representations with respect to such matters are
erroneous.

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

     Section 1.04 Acts of Holders; Record Dates.

     (a) Any request, demand, authorization, direction, notice, consent, waiver or other action
provided by this Agreement to be given or taken by Holders may be embodied in and evidenced by one
or more instruments of substantially similar tenor signed by such Holders in person or by an agent
duly appointed in writing; and, except as herein otherwise expressly provided, such action shall
become effective when such instrument or instruments are delivered to the Purchase Contract Agent
and, where it is hereby expressly required, to the Company. Such instrument or instruments (and
the action embodied therein and evidenced thereby) are herein sometimes referred to as the “Act” of
the Holders signing such instrument or instruments. Proof of execution of any such instrument or
of a writing appointing any such agent shall be sufficient for any purpose of this Agreement and
(subject to Section 7.01) conclusive in favor of the Purchase Contract Agent and the Company, if
made in the manner provided in this Section.

     (b) The fact and date of the execution by any Person of any such instrument or writing may be
proved in any manner that the Purchase Contract Agent deems sufficient.

     (c) The ownership of Equity Units shall be proved by the Security Register.

     (d) Any request, demand, authorization, direction, notice, consent, waiver or other Act of the
Holder of any Equity Units shall bind every future Holder of the same Equity Units and the Holder
of every Certificate evidencing such Equity Units issued upon the registration of transfer thereof
or in exchange therefor or in lieu thereof in respect of anything done, omitted or suffered to be
done by the Purchase Contract Agent or the Company in reliance thereon, whether or not notation of
such action is made upon such Certificate.

     (e) The Company may set any date as a record date for the purpose of determining the Holders
of Outstanding Equity Units entitled to give, make or take any request, demand, authorization,
direction, notice, consent, waiver or other action provided or permitted by this Agreement to be
given, made or taken by Holders of Equity Units. If any record date is set pursuant to this
paragraph, the Holders of the Outstanding Corporate Units and the Outstanding Treasury Units, as
the case may be, on such record date, and no other Holders, shall be entitled to take the relevant
action with respect to the Corporate Units or the Treasury Units, as the case may be, whether or
not such Holders remain Holders after such record date; provided that no such action shall be
effective hereunder unless taken prior to or on
the applicable Expiration Date (as defined below) by Holders of the requisite number of
Outstanding Equity Units on such record date. The Company may establish the same or different
record dates and expiration dates for Holders of Corporate Units and Treasury Units. Nothing
contained in this paragraph shall be construed to prevent the Company from setting a new record
date for any action for which a record date has previously been set pursuant to this paragraph
(whereupon the record date previously set shall automatically and with no action by any Person be
cancelled and be of no effect), and nothing contained in this paragraph shall be construed to
render ineffective any action taken by Holders of the

Purchase Contract Agreement

15

 

requisite number of Outstanding Equity Units
on the date such action is taken. Promptly after any record date is set pursuant to this paragraph,
the Company, at its own expense, shall cause notice of such record date, the proposed action by
Holders and the applicable Expiration Date to be given to the Purchase Contract Agent in writing
and to each Holder of Equity Units in the manner set forth in Section 1.06.

     With respect to any record date set pursuant to this Section 1.04(e), the Company may
designate any date as the “Expiration Date” and from time to time may change the Expiration Date to
any earlier or later day; provided that no such change shall be effective unless notice of the
proposed new Expiration Date is given to the Purchase Contract Agent in writing, and to each Holder
of Equity Units in the manner set forth in Section 1.06, prior to or on the existing Expiration
Date. If an Expiration Date is not designated with respect to any record date set pursuant to this
Section, the Company shall be deemed to have initially designated the 180th day after such record
date as the Expiration Date with respect thereto, subject to its right to change the Expiration
Date as provided in this paragraph. Notwithstanding the foregoing, no Expiration Date shall be
later than the 180th day after the applicable record date.

     Section 1.05 Notices.

     Any notice or communication is duly given if in writing and delivered in person or mailed by
first-class mail (registered or certified, return receipt requested) or overnight air courier
guaranteeing next day delivery, to the others’ address; provided that notice shall be deemed given
to the Purchase Contract Agent only upon receipt thereof:

     If to the Purchase Contract Agent:

The Bank of New York

101 Barclay Street-8W

New York, New York 10286

Attention: Corporate Trust Administration

Telephone: (212) 815-2923

Facsimile: (212) 815-5704

     If to the Company:

American International Group, Inc.

70 Pine Street

New York, New York 10270

Attention: Secretary

Facsimile: (212) 785-1584

     If to the Collateral Agent:

Wilmington Trust Company

Rodney Square North

1100 North Market Street

Wilmington, Delaware 19890

Attention: Corporate Trust Administration

Telephone: (302) 636-6453

Facsimile: (302) 636-4140

Purchase Contract Agreement

16

 

     If to the Trustee:

The Bank of New York

101 Barclay Street-8W

New York, New York 10286

Attention: Corporate Trust Administration

Telephone: (212) 815-2923

Facsimile: (212) 815-5704

     The Purchase Contract Agent shall send to the Trustee at the telecopier number set forth above
a copy of any notices in the form of Exhibits C, D, E or F it sends or receives.

     Section 1.06 Notice to Holders; Waiver.

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

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

     Section 1.07 Effect of Headings and Table of Contents.

     The Article and Section headings herein and the Table of Contents are for convenience only and
shall not affect the construction hereof.

     Section 1.08 Successors and Assigns.

     All covenants and agreements in this Agreement by the Company and the Purchase Contract Agent
shall bind their respective successors and assigns, whether so expressed or not.

     Section 1.09 Separability Clause.

     In case any provision in this Agreement or in any Equity Unit shall be invalid, illegal or
unenforceable, the validity, legality and enforceability of the remaining provisions hereof and
thereof shall not in any way be affected or impaired thereby.

Purchase Contract Agreement

17

 

     Section 1.10 Benefits of Agreement.

     Nothing contained in this Agreement or in the Equity Units, express or implied, shall give to
any Person, other than the parties hereto and their successors hereunder and, to the extent
provided hereby, the Holders, any benefits or any legal or equitable right, remedy or claim under
this Agreement. The Holders from time to time shall be beneficiaries of this Agreement and shall
be bound by all of the terms and conditions hereof and of the Equity Units evidenced by their
Certificates by their acceptance of delivery of such Certificates.

     Section 1.11 Governing Law.

     THIS AGREEMENT AND THE EQUITY UNITS SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH,
THE LAWS OF THE STATE OF NEW YORK. The Company, the Purchase Contract Agent and the Holders from
time to time of the Equity Units, acting through the Purchase Contract Agent as their
attorney-in-fact, hereby submit to the exclusive jurisdiction of the United States District Court
for the Southern District of New York and of any New York state court sitting in New York City for
the purposes of all actions, suits or proceedings arising out of or relating to this Agreement or
the transactions contemplated hereby. The Company, the Purchase Contract Agent and the Holders from
time to time of the Equity Units, acting through the Purchase Contract Agent as their
attorney-in-fact, irrevocably waive, to the fullest extent permitted by applicable law, any
objection that they may now or hereafter have to the laying of the venue of any such proceeding
brought in such a court and any claim that any such proceeding brought in such a court has been
brought in an inconvenient forum.

     Section 1.12 Legal Holidays.

     In any case where any Payment Date shall not be a Business Day (notwithstanding any other
provision of this Agreement or the Equity Units), Contract Adjustment Payments or other
distributions shall not be paid on such date, but Contract Adjustment Payments or such other
distributions shall be paid on the next succeeding Business Day with the same force and effect as
if made on such Payment Date. No interest shall accrue or be payable by the Company or to any
Holder for the period from and after any such Payment Date.

     In any case where any Stock Purchase Date, Early Settlement Date or Cash Merger Early
Settlement Date shall not be a Business Day (notwithstanding any other provision of this Agreement
or the Equity Units), Stock Purchase Contracts shall not be performed and Early Settlement and Cash
Merger Early Settlement shall not be effected on such date, but Stock Purchase Contracts shall be
performed or Early Settlement or Cash Merger Early Settlement shall be effected, as applicable, on
the next succeeding Business Day with the same force and effect as if made on such Stock Purchase
Date, Early Settlement Date or Cash Merger Early Settlement Date, as applicable.

     Section 1.13 Counterparts.

     This Agreement may be executed in any number of counterparts by the parties hereto on separate
counterparts, each of which, when so executed and delivered, shall be deemed an original, but all
such counterparts shall together constitute one and the same instrument.

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     Section 1.14 Inspection of Agreement.

     A copy of this Agreement shall be available at all reasonable times during normal business
hours at the Corporate Trust Office for inspection by any Holder or Beneficial Owner of an Equity
Unit.

     Section 1.15 Appointment of Financial Institution as Agent for the Company.

     The Company may appoint a financial institution (which may be the Collateral Agent) to act as
its agent in performing its obligations and in accepting and enforcing performance of the
obligations of the Purchase Contract Agent and the Holders, under this Agreement and the Stock
Purchase Contracts, by giving notice of such appointment in the manner provided in Section 1.05.
Any such appointment shall not relieve the Company in any way from its obligations hereunder.

     Section 1.16 No Waiver.

     No failure on the part of the Company, the Purchase Contract Agent, the Collateral Agent, the
Securities Intermediary or any of their respective agents to exercise, and no course of dealing
with respect to, and no delay in exercising, any right, power or remedy hereunder shall operate as
a waiver thereof; nor shall any single or partial exercise by the Company, the Purchase Contract
Agent, the Collateral Agent, the Securities Intermediary or any of their respective agents of any
right, power or remedy hereunder preclude any other or further exercise thereof or the exercise of
any other right, power or remedy. The remedies herein are cumulative and are not exclusive of any
remedies provided by law.

     Section 1.17 Force Majeure.

     In no event shall the Purchase Contract Agent be responsible or liable for any failure or
delay in the performance of its obligations hereunder arising out of or caused by, directly or
indirectly, forces beyond its control, including, without limitation, strikes, work stoppages,
accidents, acts of war or terrorism, civil or military disturbances, nuclear or natural
catastrophes or acts of God, and interruptions, loss or malfunctions of utilities, communications
or computer (software and hardware) services; it being understood that the Purchase Contract Agent
shall use reasonable efforts which are consistent with accepted practices in the banking industry
to resume performance as soon as practicable under the circumstances.

ARTICLE II

CERTIFICATE FORMS

     Section 2.01 Forms of Certificates Generally.

     The Certificates (including the Stock Purchase Contract forming part of each Equity Unit
evidenced thereby) shall be in substantially the form set forth in Exhibit A (in the case of
Certificates evidencing Corporate Units) or Exhibit B (in the case of Certificates evidencing
Treasury Units), with such letters, numbers or other marks of identification or designation and
such legends or endorsements printed, lithographed or engraved thereon as may be required by the
rules of any securities exchange on which the Equity Units are listed or any depositary therefor,
or as may be determined by the officers of the Company executing such Certificates, as evidenced by
their execution of the Certificates.

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     The definitive Certificates shall be produced in any manner as determined by the officers of
the Company executing the Equity Units evidenced by such Certificates, consistent with the
provisions of this Agreement, as evidenced by their execution thereof.

     Every Global Certificate authenticated, executed on behalf of the Holders and delivered
hereunder shall bear a legend substantially in the form set forth in Exhibit A and Exhibit B for a
Global Certificate.

     Section 2.02 Form of Purchase Contract Agent’s Certificate of Authentication.

     The form of the Purchase Contract Agent’s certificate of authentication of the Equity Units
shall be in substantially the form set forth on the form of the applicable Certificates.

ARTICLE III

THE EQUITY UNITS

     Section 3.01 Amount; Form and Denominations.

     The aggregate number of Equity Units evidenced by Certificates authenticated, executed on
behalf of the Holders and delivered hereunder is limited to 78,400,000, except for Certificates
authenticated, executed and delivered upon registration of transfer of, in exchange for, or in lieu
of, other Certificates pursuant to Section 3.04, Section 3.05, Section 3.09, Section 3.10, Section
3.13, Section 3.14, Section 5.07(f) or Section 8.05.

     The Certificates shall be issuable only in registered form and only in the Stated Amounts of a
single Corporate Unit or Treasury Unit and any integral multiple thereof.

     Section 3.02 Rights and Obligations Evidenced by the Certificates.

     Each Corporate Unit Certificate shall evidence the number of Corporate Units specified
therein, with each such Corporate Unit representing one Stock Purchase Contract and:

     (i) prior to the First Stock Purchase Date or, if earlier, the First Remarketing
Settlement Date, a 1/40, or 2.5%, undivided beneficial ownership interest in a Series B-1
Debenture with an aggregate Principal Amount of $1,000;

     (ii) prior to the Second Stock Purchase Date or, if earlier, the Second Remarketing
Settlement Date, a 1/40, or 2.5%, undivided beneficial ownership interest in a Series B-2
Debenture with an aggregate Principal Amount of $1,000;

     (iii) prior to the Third Stock Purchase Date or, if earlier, Third Remarketing
Settlement Date, a 1/40, or 2.5%, undivided beneficial ownership interest in a Series B-3
Debenture with an aggregate Principal Amount of $1,000; and

     (iv) after the Remarketing Settlement Date for any series of Debentures and prior to
the applicable Stock Purchase Date, the undivided beneficial ownership interest
corresponding to one Corporate Unit in the Treasury Portfolio purchased with the net
proceeds of the Remarketing;

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in each case subject to the Pledge thereof.

     The Purchase Contract Agent is hereby authorized, as attorney-in-fact for, and on behalf of,
the Holders of Corporate Units, to pledge, pursuant to the Pledge Agreement, the Debentures forming
part of such Corporate Units, to the Collateral Agent for the benefit of the Company, and to grant
to the Collateral Agent, for the benefit of the Company, a security interest in the right, title
and interest of such Holder:

     (i) the Series B-1 Debentures to secure the obligation of the Holders under the Stock
Purchase Contracts to purchase shares of Common Stock on the First Stock Purchase Date;

     (ii) the Series B-2 Debentures to secure the obligation of the Holders under the Stock
Purchase Contracts to purchase shares of Common Stock on the Second Stock Purchase Date;

     (iii) the Series B-3 Debentures to secure the obligation of the Holders under the Stock
Purchase Contracts to purchase shares of Common Stock on the Third Stock Purchase Date; and

     (iv) after the Remarketing Settlement Date for any series of Debentures and prior to
the applicable Stock Purchase Date, an undivided beneficial ownership interest in the
Treasury Portfolio purchased with the net proceeds of the Remarketing.

     Upon the creation of Treasury Units pursuant to Section 3.13, each Treasury Unit Certificate
shall evidence the number of Treasury Units specified therein, with each such Treasury Units
representing one Stock Purchase Contract and:

     (i) prior to the First Stock Purchase Date, a 1/40, or 2.5%, undivided beneficial
ownership interest in the First Qualifying Treasury Security;

     (ii) prior to the Second Stock Purchase Date, a 1/40, or 2.5%, undivided beneficial
ownership interest in the Second Qualifying Treasury Security; and

     (iii) prior to the Third Stock Purchase Date, a 1/40, or 2.5%, undivided beneficial
ownership interest in the Third Qualifying Treasury Security;

in each case subject to the Pledge thereof.

     The Purchase Contract Agent is hereby authorized, as attorney-in-fact for, and on behalf of,
the Holder of each Treasury Unit, to pledge, pursuant to the Pledge Agreement, such Holder’s
interest in each Qualifying Treasury Security forming a part of such Treasury Unit to the
Collateral Agent, for the benefit of the Company, and to grant to the Collateral Agent, for the
benefit of the Company, a security interest in the right, title and interest of such Holder to
secure the obligation of the Holder under each Stock Purchase Contract to purchase shares of Common
Stock on each Stock Purchase Date.

     Such Stock Purchase Contract shall not entitle the Holder of a Equity Units to any of the
rights of a holder of shares of Common Stock, prior to the delivery of shares of Common Stock under
each Stock Purchase Contract, including, without limitation, the right to vote or receive any
dividends or other payments or to consent or to receive notice as a stockholder in respect of the
meetings of stockholders or for the election of directors of the Company or for any other matter,
or any other rights whatsoever as a stockholder of the Company. A Holder will become a holder of
record of shares of Common Stock

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delivered pursuant to a Stock Purchase Contract at the close of business on the date the
shares of Common Stock are delivered by the Company to the Holder or, if the Company’s stock record
book is not open on that day, at the opening of business on the next Business Day the stock record
is open.

     Section 3.03 Execution, Authentication, Delivery and Dating.

     Subject to the provisions of Section 3.13 and Section 3.14, upon the execution and delivery of
this Agreement, and at any time and from time to time thereafter, the Company may deliver
Certificates executed by the Company to the Purchase Contract Agent for authentication, execution
on behalf of the Holders and delivery, together with an Issuer Order from the Company for
authentication of such Certificates, and the Purchase Contract Agent in accordance with such Issuer
Order shall authenticate, execute on behalf of the Holders and deliver such Certificates.

     The Certificates shall be executed on behalf of the Company by its Chairman of the Board, its
President, a Senior Vice President, a Vice President, its Treasurer or any Assistant Treasurer,
under its corporate seal reproduced thereon attested by its Secretary or one of its Assistant
Secretaries. The signature of any of these officers on the Certificates may be manual or
facsimile.

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

     No Stock Purchase Contract evidenced by a Certificate shall be valid until such Certificate
has been executed on behalf of the Holder by the manual signature of an authorized officer of the
Purchase Contract Agent, as such Holder’s attorney-in-fact. Such signature by an authorized
officer of the Purchase Contract Agent shall be conclusive evidence that the Holder of such
Certificate has entered into the Stock Purchase Contracts evidenced by such Certificate.

     Each Certificate shall be dated the date of its authentication.

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

     Section 3.04 Temporary Certificates.

     Pending the preparation of definitive Certificates, the Company shall execute and deliver to
the Purchase Contract Agent, and the Purchase Contract Agent shall authenticate, execute on behalf
of the Holders, and deliver, in lieu of such definitive Certificates, temporary Certificates that
are in substantially the form set forth in Exhibit A or Exhibit B, as the case may be, with such
letters, numbers or other marks of identification or designation and such legends or endorsements
printed, lithographed or engraved thereon as may be required by the rules of any securities
exchange on which the Corporate Units or Treasury Units, as the case may be, are listed, or as may
be determined by the officers of the Company executing such Certificates, as evidenced by their
execution of the Certificates.

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     If temporary Certificates are issued, the Company will cause definitive Certificates to be
prepared without unreasonable delay. After the preparation of definitive Certificates, the
temporary Certificates shall be exchangeable for definitive Certificates upon surrender of the
temporary Certificates at the Corporate Trust Office, at the expense of the Company and without
charge to the Holder. Upon surrender for cancellation of any one or more temporary Certificates,
the Company shall execute and deliver to the Purchase Contract Agent, and the Purchase Contract
Agent shall authenticate, execute on behalf of the Holder, and deliver in exchange therefor, one or
more definitive Certificates of like tenor and denominations and evidencing a like number of Equity
Units as the temporary Certificate or Certificates so surrendered. Until so exchanged, the
temporary Certificates shall in all respects evidence the same benefits and the same obligations
with respect to the Equity Units evidenced thereby as definitive Certificates.

     Section 3.05 Registration; Registration of Transfer and Exchange.

     The Purchase Contract Agent shall keep at the Corporate Trust Office a register (the “Security
Register”) in which, subject to such reasonable regulations as it may prescribe, the Purchase
Contract Agent shall provide for the registration of Certificates and of transfers of Certificates
(the Purchase Contract Agent, in such capacity, the “Security Registrar”). The Security Registrar
shall record separately the registration and transfer of the Certificates evidencing Corporate
Units and Treasury Units.

     Upon surrender for registration of transfer of any Certificate at the Corporate Trust Office,
the Company shall execute and deliver to the Purchase Contract Agent, and the Purchase Contract
Agent shall authenticate, execute on behalf of the designated transferee or transferees, and
deliver, in the name of the designated transferee or transferees, one or more new Certificates of
any authorized Stated Amounts, of like tenor, and evidencing a like number of Corporate Units or
Treasury Units, as the case may be.

     At the option of the Holder, Certificates evidencing Corporate Units or Treasury Units may be
exchanged for other Certificates, of any authorized Stated Amounts and evidencing a like number of
Corporate Units or Treasury Units, as the case may be, upon surrender of the Certificates to be
exchanged at the Corporate Trust Office. Whenever any Certificates are so surrendered for
exchange, the Company shall execute and deliver to the Purchase Contract Agent, and the Purchase
Contract Agent shall authenticate, execute on behalf of the Holder, and deliver the Certificates
that the Holder making the exchange is entitled to receive.

     All Certificates issued upon any registration of transfer or exchange of a Certificate shall
evidence the ownership of the same number of Corporate Units or Treasury Units, as the case may be,
and be entitled to the same benefits and subject to the same obligations under this Agreement as
the Corporate Units or Treasury Units, as the case may be, evidenced by the Certificate surrendered
upon such registration of transfer or exchange.

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

     No service charge shall be made for any registration of transfer or exchange of a Certificate,
but the Company and the Security Registrar may require payment from the Holder of a sum sufficient
to cover any tax or other governmental charge that may be imposed in connection with any
registration of

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transfer or exchange of Certificates, other than any exchanges pursuant to Section 3.04 and
Section 8.05 not involving any transfer.

     Notwithstanding the foregoing, the Company shall not be obligated to execute and deliver to
the Purchase Contract Agent, and the Purchase Contract Agent shall not be obligated to
authenticate, execute on behalf of the Holder and deliver any Certificate in exchange for any other
Certificate presented or surrendered for registration of transfer or for exchange on or after the
Business Day immediately preceding the earliest to occur of any Early Settlement Date with respect
to the Equity Units evidenced by such Certificate, any Cash Merger Early Settlement Date with
respect to the Equity Units evidenced by such Certificate, the Third Stock Purchase Date or the
Termination Date. In lieu of delivery of a new Certificate, upon satisfaction of the applicable
conditions specified above in this Section and receipt of appropriate registration or transfer
instructions from such Holder, the Purchase Contract Agent shall:

     (i) if the Third Stock Purchase Date or an Early Settlement Date or a Cash Merger Early
Settlement Date with respect to such other Certificate (or portion thereof) has occurred,
deliver to such Holder the shares of Common Stock issuable in respect of the Stock Purchase
Contracts forming a part of the Equity Units evidenced by such other Certificate (or portion
thereof); or

     (ii) if a Termination Event, Early Settlement or Cash Merger Early Settlement shall
have occurred, transfer each series of Debentures with respect to which the applicable Stock
Purchase Date has not yet occurred (or an interest in the Treasury Portfolio if the
Remarketing Settlement Date with respect to such series has occurred) or, in the case of
Treasury Units, the applicable Qualifying Treasury Securities pledged in lieu of the
Debentures, as the case may be, evidenced thereby, to such Holder, in each case subject to
the applicable conditions and in accordance with the applicable provisions of Section 3.15
and Article V.

     Section 3.06 Notices to Holders.

     Whenever a notice or other communication to the Holders is required to be given under this
Agreement, the Company, the Company’s agent or the Purchase Contract Agent, as the case may be,
shall give such notices and communications to the Holders and, with respect to any Equity Units
registered in the name of the Depositary or the nominee of the Depositary, the Company or the
Company’s agent shall, except as set forth herein, have no obligations to the Beneficial Owners.

     Section 3.07 Book-Entry Interests.

     The Certificates will be issued in the form of one or more fully registered Global
Certificates, to be delivered to the Depositary, as agent for the Company, or its custodian by, or
on behalf of, the Company. The Company hereby designates DTC as the initial Depositary. Such Global
Certificates shall initially be registered on the Security Register in the name of Cede & Co., the
nominee of the Depositary, and no Beneficial Owner will receive a definitive Certificate
representing such Beneficial Owner’s interest in such Global Certificate, except as provided in
Section 3.09. The Purchase Contract Agent shall enter into an agreement with the Depositary if so
requested by the Company. Following the issuance of such Global Certificates and unless and until
definitive, fully registered Certificates have been issued to Beneficial Owners pursuant to Section
3.09:

     (i) the provisions of this Section 3.07 shall be in full force and effect;

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     (ii) the Company shall be entitled to deal with the Depositary for all purposes of this
Agreement (including, without limitation, making Contract Adjustment Payments and receiving
approvals, votes or consents hereunder) as the Holder of the Equity Units or any Stock
Purchase Contract or Debentures that are components thereof and the sole holder of the
Global Certificates and shall have no obligation to the Beneficial Owners;

     (iii) to the extent that the provisions of this Section 3.07 conflict with any other
provisions of this Agreement, the provisions of this Section 3.07 shall control; and

     (iv) the rights of the Beneficial Owners shall be exercised only through the Depositary
and shall be limited to those established by law and agreements between such Beneficial
Owners and the Depositary or the Depositary Participants.

     Transfers of Equity Units evidenced by Global Certificates shall be made through the
facilities of the Depositary, and any cancellation of, or increase or decrease in the number of,
such Equity Units (including the creation of Treasury Units and the recreation of Corporate Units
pursuant to Section 3.13 and Section 3.14 respectively) shall be accomplished by making appropriate
annotations on the Schedule of Increases or Decreases attached to such Global Certificate.

     Section 3.08 Appointment of Successor Depositary.

     If the Depositary elects to discontinue its services as securities depositary with respect to
the Equity Units, the Company may, in its sole discretion, appoint a successor Depositary with
respect to the Equity Units.

     Section 3.09 Definitive Certificates.

     If:

     (i) the Depositary notifies the Company that it is unwilling or unable to continue its
services as securities depositary with respect to the Global Certificates and no successor
Depositary has been appointed pursuant to Section 3.08 within 90 days after such notice;

     (ii) the Depositary ceases to be a “clearing agency” registered under Section 17A of
the Exchange Act when the Depositary is required to be so registered to act as the
Depositary and so notifies the Company, and no successor Depositary has been appointed
pursuant to Section 3.08 within 90 days after the Company learns that the Depositary has
ceased to be so registered; or

     (iii) to the extent permitted by the Depositary, the Company determines, in its sole
discretion, at any time that the Equity Units shall no longer be represented by Global
Certificates and shall inform such Depositary of such determination and Depositary
Participants elect to withdraw their beneficial interests in the Equity Units from such
Depositary, following notification by the Depositary of their right to do so; or

     (iv) there shall have occurred and be continuing an Event of Default with respect to
the Debentures;

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then (x) definitive Certificates shall be prepared by the Company with respect to such Equity Units
and delivered to the Purchase Contract Agent and (y) upon surrender of the Global Certificates
representing the Equity Units by the Depositary, accompanied by registration instructions, the
Company shall cause definitive Certificates to be delivered to Beneficial Owners in accordance with
the instructions of the Depositary. The Company and the Purchase Contract Agent shall not be liable
for any delay in delivery of such instructions and may conclusively rely on and shall be authorized
and protected in relying on, such instructions. Each definitive Certificate so delivered shall
evidence Equity Units of the same kind and tenor as the Global Certificate so surrendered in
respect thereof.

     Section 3.10 Mutilated, Destroyed, Lost and Stolen Certificates.

     If any mutilated Certificate is surrendered to the Purchase Contract Agent, the Company shall
execute and deliver to the Purchase Contract Agent, and the Purchase Contract Agent shall
authenticate, execute on behalf of the Holder, and deliver in exchange therefor, a new Certificate,
evidencing the same number of Corporate Units or Treasury Units, as the case may be, and bearing a
Certificate number not contemporaneously outstanding.

     If there shall be delivered to the Company and the Purchase Contract Agent (i) evidence to
their satisfaction of the destruction, loss or theft of any Certificate, and (ii) such security or
indemnity as may be required by them to hold each of them and any agent of any of them harmless,
then, in the absence of notice to the Company or the Purchase Contract Agent that such Certificate
has been acquired by a protected purchaser, the Company shall execute and deliver to the Purchase
Contract Agent, and the Purchase Contract Agent shall authenticate, execute on behalf of the
Holder, and deliver to the Holder, in lieu of any such destroyed, lost or stolen Certificate, a new
Certificate, evidencing the same number of Corporate Units or Treasury Units, as the case may be,
and bearing a Certificate number not contemporaneously outstanding.

     Notwithstanding the foregoing, the Company shall not be obligated to execute and deliver to
the Purchase Contract Agent, and the Purchase Contract Agent shall not be obligated to
authenticate, execute on behalf of the Holder, and deliver to the Holder, a Certificate on or after
the Business Day immediately preceding the earliest of any Early Settlement Date with respect to
such lost, stolen, destroyed or mutilated Certificate, any Cash Merger Early Settlement Date with
respect to such lost, stolen, destroyed or mutilated Certificate, the Third Stock Purchase Date or
the Termination Date. In lieu of delivery of a new Certificate, upon satisfaction of the applicable
conditions specified above in this Section and receipt of appropriate registration or transfer
instructions from such Holder, the Purchase Contract Agent shall:

     (i) if the Third Stock Purchase Date or Early Settlement Date or Cash Merger Early
Settlement Date with respect to such lost, stolen, destroyed or mutilated Certificate has
occurred, deliver to such Holder the shares of Common Stock issuable in respect of the Stock
Purchase Contracts forming a part of the Equity Units evidenced by such Certificate; or

     (ii) if a Termination Event or a Cash Merger Early Settlement or an Early Settlement
with respect to such lost, stolen, destroyed or mutilated Certificate shall have occurred,
transfer each series of Debentures with respect to which the Stock Purchase Date has not yet
occurred (or an interest in the Treasury Portfolio if the Remarketing Settlement Date with
respect to such series has occurred), evidenced thereby, in each case subject to the
applicable conditions and in accordance with the applicable provisions of Section 3.15 and
Article V.

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     Upon the issuance of any new Certificate under this Section, the Company and the Purchase
Contract Agent may require the payment by the Holder of a sum sufficient to cover any tax or other
governmental charge that may be imposed in relation thereto and any other fees and expenses
(including, without limitation, the fees and expenses of the Purchase Contract Agent) connected
therewith.

     Every new Certificate issued pursuant to this Section in lieu of any mutilated, destroyed,
lost or stolen Certificate shall constitute an original additional contractual obligation of the
Company and of the Holder in respect of the Equity Units evidenced thereby, whether or not the
mutilated, destroyed, lost or stolen Certificate (and the Equity Units evidenced thereby) shall be
at any time enforceable by anyone, and shall be entitled to all the benefits and be subject to all
the obligations of this Agreement equally and proportionately with any and all other Certificates
delivered 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 Certificates.

     Section 3.11 Persons Deemed Owners.

     Prior to due presentment of a Certificate for registration of transfer, the Company and the
Purchase Contract Agent, and any agent of the Company, the Security Registrar or the Purchase
Contract Agent, may treat the Person in whose name such Certificate is registered as the owner of
the Equity Units evidenced thereby for purposes of (subject to any applicable record date) any
payment or distribution on the Debentures, payment of Contract Adjustment Payments and performance
of the Stock Purchase Contracts and for all other purposes whatsoever in connection with such
Equity Units, whether or not such payment, distribution, or performance shall be overdue and
notwithstanding any notice to the contrary, and none of the Company, the Security Registrar or the
Purchase Contract Agent, nor any agent of the Company, the Security Registrar or the Purchase
Contract Agent, shall be affected by notice to the contrary.

     With respect to any Global Certificate, nothing contained herein shall prevent the Company,
the Purchase Contract Agent or any agent of the Company or the Purchase Contract Agent, from giving
effect to any written certification, proxy or other authorization furnished by the Depositary (or
its nominee), as a Holder, with respect to such Global Certificate, or impair, as between such
Depositary and the related Beneficial Owner, the operation of customary practices governing the
exercise of rights of the Depositary (or its nominee) as Holder of such Global Certificate. None of
the Company, the Purchase Contract Agent or any agent of the Company or the Purchase Contract Agent
will have any responsibility or liability for any aspect of the records relating to or payments
made on account of beneficial ownership interests of a Global Certificate or maintaining,
supervising or reviewing any records relating to such beneficial ownership interests.

     Section 3.12 Cancellation.

     All Certificates surrendered for delivery of shares of Common Stock on or after the Third
Stock Purchase Date or upon the transfer of Debentures or for delivery of Debentures or Qualifying
Treasury Securities, as the case may be, after the occurrence of a Termination Event or pursuant to
a Notice to Settle with Cash in connection with the Third Stock Purchase Date, an Early Settlement
or a Cash Merger Early Settlement, or upon the registration of transfer or exchange of Equity
Units, or a Collateral Substitution or the recreation of Corporate Units shall, if surrendered to
any Person other than the Purchase Contract Agent, be delivered to the Purchase Contract Agent
along with appropriate written

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instructions from the Company regarding the cancellation thereof and, if not already
cancelled, shall be promptly cancelled by it. The Company may at any time deliver to the Purchase
Contract Agent for cancellation any Certificates previously authenticated, executed and delivered
hereunder that the Company may have acquired in any manner whatsoever, and all Certificates so
delivered shall, upon an Issuer Order, be promptly cancelled by the Purchase Contract Agent. No
Certificates shall be authenticated, executed on behalf of the Holder and delivered in lieu of or
in exchange for any Certificates cancelled as provided in this Section. All cancelled Certificates
held by the Purchase Contract Agent shall be disposed of in accordance with its customary
practices.

     If the Company or any Affiliate of the Company shall acquire any Certificate, such acquisition
shall not operate as a cancellation of such Certificate unless and until such Certificate is
delivered to the Purchase Contract Agent cancelled or for cancellation.

     Section 3.13 Creation of Treasury Units by Substitution of Qualifying Treasury Securities.

     Subject to the conditions set forth in this Agreement, a Holder may, at any time (other than
during a Blackout Period) from and after the date of this Agreement effect a Collateral
Substitution and separate the Pledged Debentures from the related Stock Purchase Contracts in
respect of all or a portion of such Holder’s Corporate Units by substituting Qualifying Treasury
Securities or portions thereof for such Pledged Debentures of each series in accordance with the
procedures set forth below; provided that Holders may make Collateral Substitutions only in
integral multiples of 40 Corporate Units. To effect such substitution, the Holder must:

     (i) deposit with the Collateral Agent each applicable Qualifying Treasury Security; and

     (ii) transfer 40 Corporate Units or an integral multiple thereof to the Purchase
Contract Agent accompanied by a notice to the Purchase Contract Agent, substantially in the
form of Exhibit C, (A) stating that the Holder has deposited the relevant amount of
applicable Qualifying Treasury Securities with the Securities Intermediary for credit to the
Collateral Account and (B) instructing the Purchase Contract Agent to instruct the
Collateral Agent to release the Pledged Debentures underlying such Corporate Units,
whereupon the Purchase Contract Agent shall promptly provide an instruction to such effect
to the Collateral Agent, substantially in the form of Exhibit A to the Pledge Agreement.

Upon receipt of the applicable Qualifying Treasury Securities described in clause (i) above and the
instruction described in clause (B) above, in accordance with the terms of the Pledge Agreement,
the Collateral Agent will cause the Securities Intermediary to effect the release of such Pledged
Debentures from the Pledge and the transfer of such Debentures to the Purchase Contract Agent on
behalf of the Holder free and clear of the Company’s security interest therein. Upon receipt of
such Debentures, the Purchase Contract Agent shall promptly:

     (i) cancel the related Corporate Units;

     (ii) transfer to the Holder the Debentures of each series with respect to which the
Stock Purchase Date has not yet occurred (such Debentures shall be tradeable as separate
securities, independent of the resulting Treasury Units); and

Purchase Contract Agreement

28

 

     (iii) deliver Treasury Units in book-entry form, or if applicable, authenticate,
execute on behalf of such Holder and deliver Treasury Units in the form of a Treasury Unit
Certificate executed by the Company in accordance with Section 3.03 evidencing the same
number of Stock Purchase Contracts as were evidenced by the cancelled Corporate Units.

     Holders who elect to separate the applicable Debentures from the related Stock Purchase
Contracts and to substitute the applicable Qualifying Treasury Securities for such Debentures shall
be responsible for any fees or expenses (other than any fees and expenses payable to the Collateral
Agent for its services as Collateral Agent) in respect of the substitution, and neither the Company
nor the Purchase Contract Agent shall be responsible for any such fees or expenses.

     In the event a Holder making a Collateral Substitution pursuant to this Section 3.13 fails to
effect a book-entry transfer of the Corporate Units or fails to deliver Corporate Unit Certificates
to the Purchase Contract Agent after depositing the applicable Qualifying Treasury Securities with
the Securities Intermediary, any distributions on the Debentures constituting a part of such
Corporate Units shall be held in the name of the Purchase Contract Agent or its nominee in trust
for the benefit of such Holder, until such Corporate Units are so transferred or the Corporate Unit
Certificate is so delivered, as the case may be, or until such Holder provides evidence
satisfactory to the Company and the Purchase Contract Agent that such Corporate Unit Certificate
has been mutilated, destroyed, lost or stolen, together with any indemnity that may be reasonably
required by the Purchase Contract Agent and the Company.

     Except as described in Section 5.02 or in this Section 3.13 or in connection with a Settlement
with Cash, an Early Settlement, a Cash Merger Early Settlement or a Termination Event, for so long
as the Stock Purchase Contract underlying Corporate Units remains in effect, such Corporate Units
shall not be separable into its constituent parts, and the rights and obligations of the Holder in
respect of the interests in the applicable Debentures and the Stock Purchase Contract comprising
such Corporate Units may be acquired, and may be transferred and exchanged, only as Corporate
Units.

     Section 3.14 Recreation of Corporate Units.

     Subject to the conditions set forth in this Agreement, a Holder of Treasury Units may recreate
Corporate Units at any time (other than during a Blackout Period) in accordance with the procedures
set forth below; provided that Holders of Treasury Units may only recreate Corporate Units in
integral multiples of 40 Treasury Units. To recreate Corporate Units, for each 40 Treasury Units
the Holder must:

     (i) transfer to the Securities Intermediary the applicable Debentures of each series
having a Principal Amount of $1,000; and

     (ii) transfer the related Treasury Units to the Purchase Contract Agent accompanied by
a notice to the Purchase Contract Agent, substantially in the form of Exhibit C, (A) stating
that the Holder has transferred the relevant amount of each series of applicable Debentures
and (B) instructing the Purchase Contract Agent to instruct the Collateral Agent to release
the Pledged Treasury Securities underlying such Treasury Units, whereupon the Purchase
Contract Agent shall promptly provide an instruction to such effect to the Collateral Agent,
substantially in the form of Exhibit C to the Pledge Agreement.

Upon receipt of the Debentures described in clauses (i) above and the instruction described in
clause (B) above, in accordance with the terms of the Pledge Agreement, the Collateral Agent will
cause the Securities Intermediary to effect the release of the Pledged Treasury Securities having a
corresponding

Purchase Contract Agreement

29

 

aggregate principal amount at maturity from the Pledge and the transfer thereof to the Purchase
Contract Agent on behalf of the Holder free and clear of the Company’s security interest therein.
Upon receipt of such Treasury Securities, the Purchase Contract Agent shall promptly:

     (i) cancel the related Treasury Units;

     (ii) transfer the applicable Qualifying Treasury Securities to the Holder; and

     (iii) deliver Corporate Units in book-entry form or, if applicable, authenticate,
execute on behalf of such Holder and deliver Corporate Units in the form of a Corporate Unit
Certificate executed by the Company in accordance with Section 3.03 evidencing the same
number of Stock Purchase Contracts as were evidenced by the cancelled Treasury Units.

     Holders who elect to recreate Corporate Units shall be responsible for any fees or expenses
(other than any fees and expenses payable to the Collateral Agent for its services as Collateral
Agent) in respect of the recreation, and neither the Company nor the Purchase Contract Agent shall
be responsible for any such fees or expenses.

     Except as provided in Section 5.02 or in this Section 3.14 or in connection with a Settlement
with Cash, an Early Settlement, a Cash Merger Early Settlement or a Termination Event, for so long
as the Stock Purchase Contract underlying Treasury Units remains in effect, such Treasury Units
shall not be separable into its constituent parts and the rights and obligations of the Holder of
such Treasury Units in respect of the interests in the applicable Qualifying Treasury Securities
and the Stock Purchase Contract comprising such Treasury Units may be acquired, and may be
transferred and exchanged, only as Treasury Units.

     Section 3.15 Transfer of Collateral upon Occurrence of Termination Event.

     Upon the occurrence of a Termination Event and the transfer to the Purchase Contract Agent of
the applicable Debentures (or, if such Termination Event occurs after a Remarketing Settlement Date
and prior to the applicable Stock Purchase Date, an interest in the Treasury Portfolio) or the
applicable Qualifying Treasury Securities, as the case may be, underlying the Corporate Units and
the Treasury Units, as the case may be, pursuant to the terms of the Pledge Agreement, the Purchase
Contract Agent shall request transfer instructions with respect to such applicable Debentures (or,
if such Termination Event occurs after a Remarketing Settlement Date and prior to the applicable
Stock Purchase Date, an interest in the Treasury Portfolio) or applicable Qualifying Treasury
Securities, as the case may be, from each Holder by written request, substantially in the form of
Exhibit D, mailed to such Holder at its address as it appears in the Security Register.

     Upon book-entry transfer of the Corporate Units or the Treasury Units or delivery of a
Corporate Unit Certificate or Treasury Unit Certificate, as the case may be, to the Purchase
Contract Agent with such transfer instructions, the Purchase Contract Agent shall transfer the
applicable Debentures (or, if such Termination Event occurs after a Remarketing Settlement Date and
prior to the applicable Stock Purchase Date, an interest in the Treasury Portfolio) or applicable
Qualifying Treasury Securities, as the case may be, underlying such Corporate Units or Treasury
Units, as the case may be, to such Holder by book-entry transfer, or other appropriate procedures,
in accordance with such instructions. In the event a Holder of Corporate Units or Treasury Units
fails to effect such transfer or delivery, the applicable Debentures (or, if such Termination Event
occurs after a Remarketing Settlement Date and prior to the applicable Stock Purchase Date, an
interest in the Treasury Portfolio) or applicable Qualifying Treasury

Purchase Contract Agreement

30

 

Securities, as the case may be, underlying such Corporate Units or Treasury Units, as the case
may be, and any distributions thereon, shall be held in the name of the Purchase Contract Agent or
its nominee in trust for the benefit of such Holder, until the earlier to occur of:

     (i) the transfer of such Corporate Units or Treasury Units or surrender of the
Corporate Unit Certificate or Treasury Unit Certificate or the receipt by the Company and
the Purchase Contract Agent from such Holder of satisfactory evidence that such Corporate
Unit Certificate or Treasury Unit Certificate has been mutilated, destroyed, lost or stolen,
together with any indemnity that may be reasonably required by the Purchase Contract Agent
and the Company; and

     (ii) the expiration of the time period specified in the abandoned property laws of the
relevant State in which the Purchase Contract Agent holds such property.

     Section 3.16 No Consent to Assumption.

     Each Holder of an Equity Unit, by acceptance thereof, shall be deemed expressly to have
withheld any consent to the assumption (i.e., affirmance) under Section 365 of the Bankruptcy Code
or otherwise, of the Stock Purchase Contract by the Company or its trustee, receiver, liquidator or
a person or entity performing similar functions in the event that the Company becomes the subject
of a case under the Bankruptcy Code or subject to other similar state or Federal law providing for
reorganization or liquidation.

     Section 3.17 CUSIP Numbers.

     The Company in issuing the Securities may use “CUSIP” numbers (if then generally in use), and,
if so, the Purchase Contract Agent shall use “CUSIP” numbers as a convenience to Holders. The
Company will promptly notify the Purchase Contract Agent in writing of any change in the “CUSIP”
numbers.

ARTICLE IV

THE DEBENTURES

     Section 4.01 Distributions; Rights to Distributions Preserved.

     Any payment on any Debenture that is paid on any Payment Date shall, subject to Section
5.11(b) and to receipt thereof by the Purchase Contract Agent from the Company (in the case of a
Debenture that is held in the name of the Purchase Contract Agent) or from the Collateral Agent as
provided by the terms of the Pledge Agreement (in the case of a Debenture that is held in the name
of the Collateral Agent), be paid by the Purchase Contract Agent to the Person in whose name the
Corporate Unit Certificate (or one or more Predecessor Corporate Unit Certificates) of which such
Debentures form a part is registered at the close of business on the Record Date for such Payment
Date.

     Each Corporate Unit Certificate evidencing the ownership interest in the underlying Debentures
delivered under this Agreement upon registration of transfer of or in exchange for or in lieu of
any other Corporate Unit Certificate shall carry the right to accrued and unpaid interest, and to
accrue interest, that were carried by the Debentures underlying such other Corporate Unit
Certificate.

Purchase Contract Agreement

31

 

     In the case of any Corporate Units with respect to which (A) a Settlement with Cash of the
underlying Stock Purchase Contract is properly effected pursuant to Section 5.02(b), (B) an Early
Settlement of the underlying Stock Purchase Contract is properly effected pursuant to Section 5.07,
(C) a Cash Merger Early Settlement of the underlying Stock Purchase Contract is properly effected
pursuant to Section 5.04(b)(ii), (D) a Collateral Substitution is properly effected pursuant to
Section 3.11, or (E) a Successful Remarketing occurs with respect to the Debentures that are part
of such Corporate Units, in each case on a date that is after any Record Date and prior to or on
the next succeeding Payment Date, distributions on the Debentures underlying such Corporate Units
otherwise payable on such Payment Date shall be payable on such Payment Date notwithstanding such
Settlement with Cash, Early Settlement, Cash Merger Early Settlement, Collateral Substitution or
Successful Remarketing, and such payment or distributions shall, subject to receipt thereof by the
Purchase Contract Agent, be payable to the Person in whose name the Corporate Unit Certificate (or
one or more Predecessor Corporate Unit Certificates) was registered at the close of business on the
Record Date.

     Except as otherwise expressly provided in the immediately preceding paragraph, in the case of
any Corporate Units with respect to which Settlement with Cash, Early Settlement or Cash Merger
Early Settlement of the underlying Stock Purchase Contract is properly effected, or with respect to
which a Collateral Substitution has been effected, payments on the related Debentures that would
otherwise be payable or made after any Stock Purchase Date, Early Settlement Date, Cash Merger
Early Settlement Date or the date of the Collateral Substitution, as the case may be, shall not be
payable hereunder to the Holder of such Corporate Units; provided, however, that to the extent that
such Holder continues to hold Separate Debentures that formerly comprised a part of such Holder’s
Corporate Units, such Holder shall be entitled to receive distributions on such Separate
Debentures.

     Section 4.02 Notice and Voting.

     Under the terms of the Pledge Agreement, the Purchase Contract Agent will be entitled to
exercise the voting and any other consensual rights pertaining to the Pledged Debentures, but only
to the extent instructed in writing by the Holders or their appointees as described below. Upon
receipt of notice of any meeting at which holders of any series of Debentures are entitled to vote
or upon any solicitation of consents, waivers or proxies of holders of any series of Debentures,
the Purchase Contract Agent shall, as soon as practicable thereafter, mail, first class, postage
pre-paid, to the Holders of Corporate Units a notice:

     (i) containing such information as is contained in the notice or solicitation;

     (ii) stating that each Holder or its appointee on the record date set by the Purchase
Contract Agent therefor (which, to the extent possible, shall be the same date as the record
date for determining the holders of the applicable series of Debentures, as the case may be,
entitled to vote) shall be entitled to instruct the Purchase Contract Agent as to the
exercise of the voting rights pertaining to such Debentures underlying their Corporate
Units; and

     (iii) stating the manner in which such instructions may be exercised.

     Upon the written request of the Holders or their appointees of Corporate Units on such record
date received by the Purchase Contract Agent at least six days prior to such meeting, the Purchase
Contract Agent shall endeavor insofar as practicable to vote or cause to be voted, in accordance
with the instructions set forth in such requests, the maximum number of Debentures, as the case may
be, as to which any particular voting instructions are received. In the absence of specific
instructions from the

Purchase Contract Agreement

32

 

Holder of a Corporate Unit, the Purchase Contract Agent shall abstain from voting the
Debentures underlying such Corporate Units.

     The Holders of Corporate Units and Treasury Units shall have no voting or other rights in
respect of Common Stock.

ARTICLE V

THE STOCK PURCHASE CONTRACTS

     Section 5.01 Purchase of Shares of Common Stock.

     (a) Each Stock Purchase Contract shall obligate the Holder of the related Equity Unit to
purchase, and the Company to sell, on each Stock Purchase Date at a price equal to $25 in cash (the
“Purchase Price”), a number of newly issued or treasury shares of Common Stock per Equity Unit
(subject to Section 5.08) equal to the applicable Settlement Rate (as defined below) unless an
Early Settlement, a Cash Merger Early Settlement or a Termination Event with respect to the Equity
Units of which such Stock Purchase Contract is a part shall have occurred.

     With respect to each Stock Purchase Date, the “Settlement Rate” shall be:

     (i) if the Applicable Market Value of Common Stock with respect to such Stock Purchase
Date is equal to or greater than the Threshold Appreciation Price, 0.54823 shares of Common
Stock;

     (ii) if the Applicable Market Value of Common Stock with respect to such Stock Purchase
Date is less than the Threshold Appreciation Price but greater than the Reference Price, a
number of shares of Common Stock equal to $25 divided by the Applicable Market Value; and

     (iii) if the Applicable Market Value of Common Stock with respect to such Stock
Purchase Date is less than or equal to the Reference Price, 0.6579 shares of Common Stock;

in each case subject to adjustment as provided in Section 5.04.

     (b) Each Holder of Corporate Units or Treasury Units, by its acceptance of such Equity Units
will be deemed to have:

     (i) duly appointed the Purchase Contract Agent to enter into and perform the related
Stock Purchase Contract and the Pledge Agreement on its behalf and in its name as its
attorney-in-fact (including, without limitation, the execution of Certificates on behalf of
such Holder);

     (ii) irrevocably agreed to be bound by the terms and provisions of such Stock Purchase
Contract and the Pledge Agreement;

     (iii) covenanted and agreed to perform its obligations under such Stock Purchase
Contract for so long as such Holder remains a Holder of Corporate Units or Treasury Units;

     (iv) irrevocably authorized the Purchase Contract Agent to enter into and perform this
Agreement and the Pledge Agreement on its behalf and in its name as its attorney-in-fact;

Purchase Contract Agreement

33

 

     (v) consents to, and agrees to be bound by, the Pledge of such Holder’s right, title
and interest in and to the Collateral, including the Debentures and the Qualifying Treasury
Securities, pursuant to the Pledge Agreement and delivery of the applicable Debentures by
the Purchase Contract Agent to the Collateral Agent;

     (vi) for United States federal, state and local income and franchise tax purposes,
agrees to take the positions set forth in Section 10.07(b); and

     (vii) irrevocably directed the Purchase Contract Agent to execute one or more
Remarketing Agreements at the direction of the Company, without the receipt of any opinion
or certificate.

     (c) Each Holder of Corporate Units or Treasury Units, by its acceptance thereof, shall be
deemed to have further covenanted and agreed that to the extent and in the manner provided in
Section 5.02 and the provisions of the Pledge Agreement, but subject to the terms thereof, Proceeds
of the Treasury Portfolio or the applicable Qualifying Treasury Securities, as applicable, on each
Stock Purchase Date, shall be paid by the Collateral Agent to the Company in satisfaction of such
Holder’s obligations under such Stock Purchase Contract with respect to such Stock Purchase Date
and such Holder shall acquire no right, title or interest in such Proceeds except that (i) Proceeds
of the Treasury Portfolio in excess of the amount required to satisfy such Holder’s obligations
under such Stock Purchase Contract with respect to such Stock Purchase Date and (ii) any Proceeds
of the Remarketing in excess of the aggregate Treasury Portfolio Purchase Price applicable to the
related Corporate Units plus the portion of the Remarketing Agent’s Fee attributable to such
Pledged Debentures will be remitted to the Purchase Contract Agent for payment to the Holders of
the related Corporate Units (x) on the Stock Purchase Date, in the case of amounts payable pursuant
to clause (i) and (y) as promptly as practicable after the applicable Remarketing Settlement Date,
in the case of amounts payable pursuant to clause (ii).

     (d) Upon registration of transfer of a Certificate, the transferee shall be bound (without the
necessity of any other action on the part of such transferee) by the terms of this Agreement, the
Stock Purchase Contracts underlying such Certificate and the Pledge Agreement and the transferor
shall be released from the obligations under this Agreement, the Stock Purchase Contracts
underlying the Certificate so transferred and the Pledge Agreement. The Company covenants and
agrees, and each Holder of a Certificate, by its acceptance thereof, likewise shall be deemed to
have covenanted and agreed, to be bound by the provisions of this paragraph.

     (e) Promptly after the calculation of each Settlement Rate and Applicable Market Value, the
Company shall give the Purchase Contract Agent notice thereof. All calculations and determinations
of any Settlement Rate or Applicable Market Value shall be made by the Company or its agent based
on their good faith calculations and will be conclusive and binding.

     Section 5.02 Remarketing; Payment of Purchase Price.

     (a) (i) The Company shall conduct a Remarketing of each series of Debentures in accordance
with the applicable Supplemental Indenture and Remarketing Agreement and, in the event of a
Successful Remarketing, purchase the Treasury Portfolio on the Remarketing Settlement Date with the
net proceeds thereof equal to the Treasury Portfolio Purchase Price, after payment of the
Remarketing Agent’s Fee. If the Remarketing of the Series B-1 Debentures is Successful, on the
Payment Date immediately following the First Remarketing Settlement Date the Purchase Contract
Agent shall pay, out of funds received from the Custodial Agent on such date pursuant to
Section 7.3 of the Pledge Agreement,

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34

 

the Proceeds of the portion of the Treasury Portfolio corresponding to clause (ii) of the
definition of such term, to each Holder of Corporate Units on the Record Date for such Payment
Date, its pro rata share of such amount.

     (ii) With respect to the Debentures of any series that constitute part of Corporate
Units that are subject to a Failed Remarketing, the Collateral Agent for the benefit of the
Company reserves all of its rights as a secured party with respect thereto and, subject to
applicable law and Section 5.02(c) below, may, among other things, (A) retain such
Debentures in full satisfaction of the Holders’ obligations under the Stock Purchase
Contracts on the applicable Stock Purchase Date or (B) sell such Debentures in one or more
public or private sales or otherwise.

     (iii) Prior to 5:00 p.m. (New York City time) on the second Business Day immediately
preceding any Remarketing Period Start Date, Holders of Separate Debentures may elect to
have their Separate Debentures remarketed under the relevant Remarketing Agreement by
delivering their Separate Debentures, along with a notice of such election, substantially in
the form of Exhibit F to the Pledge Agreement, to the Custodial Agent. The Custodial Agent
shall hold Separate Debentures in an account separate from the Collateral Account in which
the Pledged Debentures are be held. Holders of Separate Debentures electing to have their
Separate Debentures remarketed will also have the right to withdraw that election by written
notice to the Custodial Agent, substantially in the form of Exhibit G to the Pledge
Agreement, by 5:00 p.m. (New York City time) on the second Business Day immediately
preceding the applicable Remarketing Period Start Date, upon which notice the Custodial
Agent shall return such Separate Debentures to such Holder. Promptly after 5:00 p.m. on the
Business Day immediately preceding the applicable Remarketing Period Start Date, the
Custodial Agent shall notify the Remarketing Agent of the aggregate Principal Amount of the
Separate Debentures to be remarketed. After such time, such election shall become an
irrevocable election to have such Separate Debentures remarketed in such Remarketing.

     (iv) The Purchase Contract Agent shall give Holders of Equity Units, notice of a
Remarketing at least 21 Business Days prior to the applicable Remarketing Period Start Date.
Such notice will set forth the information required to be set forth in the notice pursuant
to Section 2.1(p) of the applicable Supplemental Indenture.

     (v) As soon as practicable after 5:00 p.m. (New York City time) on the second Business
Day immediately preceding the Remarketing Period Start Date, the Collateral Agent, based on
the notices received by the Collateral Agent pursuant to Section 5.02(b)(ii), shall promptly
notify the Purchase Contract Agent of the aggregate Principal Amount of Debentures to be
tendered for purchase in the Remarketing in a notice pursuant to the terms of the Pledge
Agreement.

     (b) (i) Unless an Early Settlement or a Cash Merger Early Settlement has occurred, each Holder
of Equity Units (other than a Corporate Unit as to which an interest in a Treasury Portfolio has
replaced an interest in a series of Debentures) shall have the right to satisfy such Holder’s
obligations under the Stock Purchase Contract with respect to any Stock Purchase Date with cash by
notifying the Purchase Contract Agent by use of a notice in substantially the form of Exhibit E of
its intention to settle with cash (“Settlement with Cash”) duly completed and executed on the
reverse of the Corporate Unit Certificate surrendered to the Purchase Contract Agent by 11:00 a.m.
(New York City time) on the second Business Day immediately preceding the applicable Stock Purchase
Date (but in no event prior to the

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35

 

completion of the immediately preceding Remarketing Period); provided that Holders may only do
so in integral multiples of 40 Corporate Units. Promptly following 5:00 p.m. (New York City time)
on the second Business Day immediately preceding such Stock Purchase Date, the Purchase Contract
Agent shall notify the Collateral Agent of the receipt of such notices from Holders intending to
make a Settlement with Cash by use of a notice in substantially the form of Exhibit F.

     (ii) A Holder of Equity Units who has so notified the Purchase Contract Agent of its
intention to effect a Settlement with Cash shall, for each 40 Corporate Units to which such
notice applies, deposit with the Collateral Agent $1,000 (payable to the Collateral Agent in
immediately available funds) by 11:00 a.m. (New York City time) on the Business Day
immediately preceding the applicable Stock Purchase Date. The cash so received shall be
delivered to the Company on the applicable Stock Purchase Date in settlement of the
obligations of the Holders under Stock Purchase Contracts on such Stock Purchase Date in
accordance with the terms of this Agreement and the Pledge Agreement.

     (iii) If a Holder of Corporate Units does not notify the Purchase Contract Agent of its
intention to make a Settlement with Cash in accordance with Section 5.02(b)(i), or does
notify the Purchase Contract Agent in accordance with Section 5.02(b)(i), but fails to make
such deposit as required by Section 5.02(b)(ii), its notice delivered pursuant to Section
5.02(b)(ii) shall automatically be deemed withdrawn and without effect.

     (iv) If a Holder of a Treasury Unit has given notice of its intention to make a
Settlement with Cash in accordance with Section 5.02(b)(i) fails to deliver the cash to the
Collateral Agent on the Business Day immediately preceding the applicable Stock Purchase
Date, the proceeds from the applicable Qualifying Treasury Securities will automatically be
applied to satisfy such Holder’s obligation to purchase Common Stock on such Stock Purchase
Date.

     (c) The obligations of the Holders to pay the Purchase Price on any Stock Purchase Date are
non-recourse obligations and, except to the extent satisfied by Early Settlement, Cash Merger Early
Settlement or pursuant to Section 5.02(b), are payable solely out of the Proceeds of any Collateral
pledged to secure the obligations of the Holders with respect to such Purchase Price, and in no
event will Holders be liable for any deficiency between the Proceeds of the disposition of
Collateral and the Purchase Price.

     (d) The Company shall not be obligated to issue any shares of Common Stock in respect of a
Stock Purchase Contract on any Stock Purchase Date or deliver any certificates thereof to the
Holder of the related Equity Units unless the Company shall have received payment for the Common
Stock to be purchased thereunder on such Stock Purchase Date in the manner herein set forth.

     Section 5.03 Issuance of Shares of Common Stock.

     Unless a Termination Event, an Early Settlement or a Cash Merger Early Settlement shall have
occurred, on each Stock Purchase Date upon receipt of the aggregate Purchase Price payable on all
Outstanding Equity Units with respect to such Stock Purchase Date, the Company shall issue and
deposit with the Purchase Contract Agent, for the benefit of the Holders of the Outstanding Equity
Units, by book-entry transfer or in the form of one or more certificates representing newly issued
or treasury shares of Common Stock registered in the name of the Purchase Contract Agent (or its
nominee) as custodian for the Holders (such certificates for shares of Common Stock, together with
any dividends or distributions for which a record date and payment date for such dividend or
distribution has occurred after the close of business on the date of delivery of the shares of
Common Stock to the Purchase Contract Agent, being

Purchase Contract Agreement

36

 

hereinafter referred to as the “Stock Purchase Contract Settlement Fund”) to which the Holders
are entitled hereunder.

     Subject to the foregoing, upon delivery on or after any Stock Purchase Date, the Early
Settlement Date or the Cash Merger Early Settlement Date, of the applicable settlement instructions
forming part of the Certificate for each Equity Unit (and in the case of the Third Stock Purchase
Date, the Early Settlement Date or the Cash Merger Early Settlement Date, the surrender of such
Certificate) to the Purchase Contract Agent on or after the applicable Stock Purchase Date, the
Early Settlement Date or the Cash Merger Early Settlement Date, as the case may be, together with
IRS Forms W-8 or W-9 or substitute thereof (as appropriate) duly completed and executed, the Holder
of such Certificate shall be entitled to receive forthwith in respect thereof or exchange therefor,
by book-entry transfer or in the form of a certificate, that whole number of newly issued or
treasury shares of Common Stock that such Holder is entitled to receive pursuant to the provisions
of this Article V (after taking into account all Equity Units then held by such Holder), together
with cash in lieu of fractional shares as provided in Section 5.08 and any dividends or
distributions with respect to such shares constituting part of the Stock Purchase Contract
Settlement Fund, but without any interest thereon. Any Certificate so surrendered shall forthwith
be cancelled. Such shares shall be registered in the name of the Holder or the Holder’s designee
as specified in the settlement instructions provided by the Holder to the Purchase Contract Agent.
If any shares of Common Stock issued in respect of a Stock Purchase Contract are to be registered
to a Person other than the Person in whose name the Certificate evidencing a Equity Units of which
such Stock Purchase Contract forms a part is registered, no such registration shall be made unless
the Person requesting such registration has paid any transfer and other taxes required by reason of
such registration in a name other than that of the registered Holder of the Certificate evidencing
such Stock Purchase Contract or has established to the satisfaction of the Company that such tax
either has been paid or is not payable.

     Section 5.04 Adjustment of Fixed Settlement Rates.

     (a) Each Fixed Settlement Rate and the number of shares of Common Stock or, if applicable, the
number of Make-Whole Shares, to be delivered upon an Early Settlement or Cash Merger Early
Settlement will be subject to adjustment, without duplication, under the following circumstances:

     (i) the issuance of Common Stock as a dividend or distribution to all holders of Common
Stock, or a subdivision or combination of Common Stock, in which event each Fixed Settlement
Rate will be adjusted based on the following formula:

SR1
=
SR0
x
(OS1
/ OS0)

where,

	 	 	 	 	 	 	 
	 

	 	SR0
	 	 =
	 	the Fixed Settlement Rate in effect at the close of business on the record date
	 

	 	SR1
	 	 =
	 	the Fixed Settlement Rate in effect immediately after the record date
	 

	 	OS0
	 	 =
	 	the number of shares of Common Stock outstanding at the close of
business on the record date prior to giving effect to such event
	 

	 	OS1
	 	 =
	 	the number of shares of Common Stock that would be outstanding
immediately after, and solely as a result of, such event

     (ii) the issuance to all holders of Common Stock of certain rights, options or warrants
entitling them for a period expiring 60 days or less from the date of issuance of such
rights, options or warrants to purchase shares of Common Stock at less than the Current
Market Price of

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Common Stock as of the record date, in which event each Fixed Settlement Rate
will be adjusted based on the following formula:

SR1
=
SR0
x
(OS0
+ X) /
(OS0 + Y)

where,

	 	 	 	 	 	 	 
	 

	 	SR0
	 	=
	 	the Fixed Settlement Rate in effect at the close of business on the record date
	 

	 	SR1
	 	=
	 	the Fixed Settlement Rate in effect immediately after the record date
	 

	 	OS0
	 	=
	 	the number of shares of Common Stock outstanding at the close of
business on the record date
	 

	 	X
	 	=
	 	the total number of shares of Common Stock issuable pursuant to such
rights, options or warrants
	 

	 	Y
	 	=
	 	the aggregate price payable to exercise such rights divided by the
average of the VWAP per share of the Common Stock over each of the 10 consecutive
Trading Days prior to the Business Day immediately preceding the announcement of the
issuance of such rights, options or warrants

However, each Fixed Settlement Rate will be readjusted to the extent that any such rights,
options or warrants are not exercised prior to their expiration.

     (iii) the dividend or other distribution to all holders of Common Stock of shares of
capital stock of the Company (other than Common Stock), rights to acquire capital stock of
the Company or evidences of the Company’s indebtedness or the Company’s assets (excluding any
dividend, distribution or issuance covered by clauses (i) or (ii) above or (iv) or (v) below)
in which event each Fixed Settlement Rate will be adjusted based on the following formula:

SR1
=
SR0
x
SP0
/
(SP0 – FMV)

where,

	 	 	 	 	 	 	 
	 

	 	SR0
	 	=
	 	the Fixed Settlement Rate in effect at the close of business on the record date
	 

	 	SR1
	 	=
	 	the Fixed Settlement Rate in effect immediately after the record date
	 

	 	SP0
	 	=
	 	the Current Market Price as of the record date
	 

	 	FMV
	 	=
	 	the fair market value (as determined in good faith by the Board of
Directors, whose good faith determination when evidenced by a Board Resolution shall
be conclusive and binding), on the record date, of the shares of capital stock of
the Company, rights to acquire capital stock, evidences of indebtedness or assets so
distributed, expressed as an amount per share of Common Stock

However, if the transaction that gives rise to an adjustment pursuant to this clause (iii) is
one pursuant to which the payment of a dividend or other distribution on Common Stock consist
of shares of capital stock of the Company of, or similar equity interests in, a subsidiary or
other business unit of the Company, that are, or, when issued, will be, traded on a U.S.
securities exchange, then each Fixed Settlement Rate will instead be adjusted based on the
following formula:

SR1
=
SR0
x
(FMV0 + MP0) / MP0

Purchase Contract Agreement

38

 

where,

	 	 	 	 	 	 	 
	 

	 	SR0
	 	=
	 	the Fixed Settlement Rate in effect at the close of business on the record date
	 

	 	SR1
	 	=
	 	the Fixed Settlement Rate in effect immediately after the record date
	 

	 	FMV0
	 	=
	 	the average of the VWAP of the capital stock or similar equity
interests distributed to holders of Common Stock applicable to one share of Common
Stock over each of the 10 consecutive Trading Days commencing on and including the
third Trading Day after the date on which “ex-distribution trading” commences for
such dividend or distribution with respect to
Common Stock on the NYSE or such other national or regional exchange or
market that is at that time the principal market for the Common Stock
	 

	 	MP0
	 	=
	 	the average of the VWAP per share of the Common Stock over each of the
10 consecutive Trading Days commencing on and including the third Trading Day after
the date on which “ex-distribution trading” commences for such dividend or
distribution with respect to Common Stock on the NYSE or such other national or
regional exchange or market that is at that time the principal market for the Common
Stock

     (iv) the Company makes a distribution consisting exclusively of cash to all holders of
Common Stock, excluding (a) any cash dividend on Common Stock to the extent that the
aggregate cash dividend per share of Common Stock does not exceed (i) $0.22 in the then
current fiscal quarter in the case of a regular quarterly dividend or (ii) $0.88 in the prior
twelve months in the case of a regular annual dividend (each such number, the “Dividend
Threshold Amount”), (b) any cash that is distributed as part of a distribution referred to in
clause (iii) above, and (c) any consideration payable in connection with a tender or exchange
offer made by the Company or any of the Company’s subsidiaries referred to in clause (v)
below, in which event, each Fixed Settlement Rate will be adjusted based on the following
formula:

SR1
= SR0 x SP0 / (SP0 – C)

where,

	 	 	 	 	 	 	 
	 

	 	SR0
	 	=
	 	the Fixed Settlement Rate in effect at the close of business on the record date
	 

	 	SR1
	 	=
	 	the Fixed Settlement Rate in effect immediately after the record date
	 

	 	SP0
	 	=
	 	the Current Market Price as of the record date
	 

	 	C
	 	=
	 	the excess of the amount in cash per share of Common Stock the Company
distributes to holders over the Dividend Threshold Amount

The Dividend Threshold Amount is subject to adjustment on an inversely proportional basis
whenever the Fixed Settlement Rates are adjusted, provided that no adjustment will be made to
the dividend threshold amount for any adjustment made to the Fixed Settlement Rates pursuant
to this clause (iv). For the avoidance of doubt, the Dividend Threshold Amount will be zero
in the case of a cash dividend amount that is not a regular quarterly or annual dividend.

     (v) the Company or one or more of its subsidiaries make purchases of Common Stock
pursuant to a tender offer or exchange offer by the Company or a subsidiary of the Company
for Common Stock to the extent that the cash and value of any other consideration included in
the payment per share of Common Stock validly tendered or exchanged exceeds the VWAP per
share of Common Stock on the Trading Day next succeeding the last date on which

Purchase Contract Agreement

39

 

tenders or
exchanges may be made pursuant to such tender or exchange offer (the “expiration date”), in
which event each Fixed Settlement Rate will be adjusted based on the following formula:

SR1 = SR0 x [(FMV + (SP1 x OS1)] / (SP
1 x OS0)

where,

	 	 	 	 	 	 	 
	 

	 	SR0
	 	=
	 	the Fixed Settlement Rate in effect at the close of business on the expiration date
	 

	 	SR1
	 	=
	 	the Fixed Settlement Rate in effect immediately after the expiration date
	 

	 	FMV
	 	=
	 	the fair market value (as determined in good faith by the Board of
Directors whose good faith determination when evidenced by a Board Resolution will
be conclusive and binding), on the expiration date, of the aggregate value of all
cash and any other consideration paid or payable for shares validly tendered or
exchanged and not withdrawn as of the expiration date (the “Purchased Shares”)
	 

	 	OS1
	 	=
	 	the number of shares of Common Stock outstanding as of the last time
tenders or exchanges may be made pursuant to such tender or exchange offer (the
"Expiration Time”) less any Purchased Shares
	 

	 	OS0
	 	=
	 	the number of shares of Common Stock outstanding at the Expiration Time,
including any Purchased Shares
	 

	 	SP1
	 	=
	 	the average of the VWAP per share of the Common Stock over each of the
10 consecutive Trading Days commencing with the Trading Day immediately after the
expiration date.

     (vi) Calculation of Adjustments. All adjustments to the Fixed Settlement Rates shall be
calculated by the Company to the nearest 1/10,000th of one share of Common Stock (or if there
is not a nearest 1/10,000th of a share, to the next lower 1/10,000th of a share). No
adjustment to the Fixed Settlement Rates shall be required unless such adjustment would
require an increase or a decrease of at least one percent in the Fixed Settlement Rate;
provided that any adjustments not so made shall be carried forward and taken into account in
any subsequent adjustment and notwithstanding whether or not such 1/10,000th of a share
threshold shall have been met, all such adjustments shall be made (x) upon the end of the
Company’s fiscal year and (y) on the applicable Stock Purchase Date, Cash Merger Early
Settlement Date or Early Settlement Date. If an adjustment is made to the Fixed Settlement
Rates pursuant to clauses (i) through (v) or (vii) of this Section 5.04(a), an adjustment
shall also be made to the Reference Price and the Threshold Appreciation Price on an
inversely proportional basis solely to determine which of clauses of the definition of
Settlement Rate will be applicable on each Stock Purchase Date or any Cash Merger Early
Settlement Date occurring after the date of such adjustment; provided that if such adjustment
to the applicable Fixed Settlement Rate is required to be made pursuant to the occurrence of
any of the events contemplated by clauses (i) through (v) or (vii) of this Section 5.04(a)
during the applicable Observation Period, appropriate and customary adjustments shall be made
to the VWAP per share of the Common Stock.

     (vii) When No Adjustment Required. No adjustment of the Fixed Settlement Rates, and the
number of shares to be delivered on Early Settlement need be made as a result of: (1) the
issuance of the rights; (2) the distribution of separate certificates representing the
rights; (3) the exercise or redemption of the rights in accordance with any rights agreement;
or (4) the

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40

 

termination or invalidation of the rights, in each case, pursuant to any
stockholder rights plans adopted by the Company from time to time; provided, however, that to
the extent that the Company has a stockholder rights plan in effect on any Stock Purchase
Date, the Holder shall receive, in addition to the shares of Common Stock, the rights under
such rights plan, unless, prior to such Stock Purchase Date, the rights have separated from
the Common Stock, in which case the applicable Fixed Settlement Rate will be adjusted at the
time of separation as if the Company made a distribution to all holders of Common Stock as
described in clause (iii) of this Section 5.04(a) including for the purposes of this
paragraph only, shares of Common Stock and assets issuable upon exercise of rights under a
stockholder rights plan, subject to readjustment in the event of the expiration, termination
or redemption of the rights.

     No adjustment to any Fixed Settlement Rate shall be made that reduces the amount payable
per share of Common Stock pursuant to the Stock Purchase Contracts below the par value per
share thereof.

     No adjustment to Fixed Settlement Rates need be made:

	 	(1)	 	upon the issuance of any shares of Common Stock or securities
convertible into, or exercisable or exchangeable for, Common Stock in public or
private transactions at any price that the Company deems appropriate;
	 
	 	(2)	 	upon the issuance of any shares of Common Stock pursuant to any
present or future plan providing for the reinvestment of dividends or interest
payable on securities of the Company and the investment of additional optional
amounts in shares of Common Stock under any plan of that type;
	 
	 	(3)	 	upon the issuance of any shares of Common Stock or options or
rights to purchase those shares or any other award that relates to, or has a
value derived from the value of the Common Stock, in each case issued pursuant to
any present or future employee, director or consultant benefit plan or program of
or assumed by the Company or any of its subsidiaries;
	 
	 	(4)	 	upon the issuance of any shares of Common Stock pursuant to any
option, warrant, right or exercisable, exchangeable or convertible security for,
Common Stock in public or private transactions at any price deemed appropriate by
the Company in its sole discretion;
	 
	 	(5)	 	for a change in the par value or no par value of the Common Stock;
	 
	 	(6)	 	for accumulated and unpaid dividends; or
	 
	 	(7)	 	upon the issuance of any shares of Common Stock pursuant to any
option, warrant, right, or exercisable, exchangeable or convertible security
outstanding as of the date the Equity Units were first issued.

For purpose of this Section 5.04(a), “record date” means, with respect to any dividend,
distribution or other transaction or event in which the holders of the Common Stock have the right
to receive any cash, securities or other property or in which the Common Stock (or other applicable
security) is exchanged for or converted into any combination of cash, securities or other property,
the date fixed for determination of

Purchase Contract Agreement

41

 

holders of the Common Stock entitled to receive such cash,
securities or other property (whether such date is fixed by the Board of Directors or by statute,
contract or otherwise).

     (b) Adjustment for Consolidation, Merger or Other Reorganization Event.

     (i) In the event of (1) any consolidation or merger of the Company with or into another
Person or of another Person with or into the Company (other than a merger or consolidation in
which the Company is the continuing corporation and in which the shares of Common Stock
outstanding immediately prior to the merger or consolidation are not exchanged for cash,
securities or other property of another Person), (2) any sale, transfer, lease or conveyance
to another Person of the assets of the Company as an entirety or substantially as an
entirety, (3) any statutory share exchange of Common Stock with another Person (other than in
connection with a merger or acquisition) or (4) any liquidation, dissolution or winding up of
the Company (other than as a result of or after the occurrence of a Termination Event) (any
such event, a “Reorganization Event”), each share of Common Stock covered by each Stock
Purchase Contract immediately prior to such Reorganization Event shall, after such
Reorganization Event, be converted for purposes of the Stock Purchase Contract into the kind
and amount of securities, cash and other property receivable in such Reorganization Event
(without any interest thereon, and without any right to dividends or distribution thereon
which have a record date that is prior to the applicable Stock Purchase Date, Cash Merger
Early Settlement Date or Early Settlement Date) per share of Common Stock by a holder of
Common Stock that is not a Person with which the Company consolidated or into which the
Company merged or which merged into the Company or to which such sale, transfer, lease or
conveyance was made, or with whom shares were exchanged pursuant to any such statutory share
exchange as the case may be (any such Person, a “Constituent Person”), or an Affiliate of a
Constituent Person to the extent such Reorganization Event provides for different treatment
of Common Stock held by the Affiliates and non-Affiliates of a Constituent Person (each such
converted share referred to as a “Exchange Property Unit”; provided that if holders of Common
Stock have the opportunity to elect the form of consideration receivable upon such
Reorganization Event, the Exchange Property Unit that Holders of the Corporate Units or
Treasury Units will be entitled to receive will be deemed to be the weighted average of the
types and amounts of consideration received by the holders of Common Stock that affirmatively
make an election (or of all such holders if none make an election). On each subsequent Stock
Purchase Date or on the Cash Merger Early Settlement Date or Early Settlement Date with
respect to any Equity Units, the Settlement Rate shall be determined by reference to the
Applicable Market Value of the Exchange Property Units. Following a Reorganization Event,
references to the purchase or issuance
of shares of Common Stock pursuant to Stock Purchase Contracts will be construed to be
references to settlement into Exchange Property Units, and references to the purchase or
issuance of any specified number of shares of Common Stock upon the settlement of Stock
Purchase Contracts will be construed to be references to settlement into the same number of
Exchange Property Units.

     In the event of such a Reorganization Event, the Person formed by such consolidation or
merger or the Person to whom such sale, transfer, lease or conveyance was made or with whom
such statutory share exchange was made or which otherwise acquires the assets of the Company
or, in the event of a liquidation or dissolution of the Company, the Company or a liquidating
trust created in connection therewith, shall execute and deliver to the Purchase Contract
Agent an agreement supplemental hereto providing that the Holder of each Outstanding Equity
Unit after the Reorganization Event, if any, shall have the rights provided by this Section
5.04. Such

Purchase Contract Agreement

42

 

supplemental agreement shall provide for adjustments to the amount of any
securities constituting all or a portion of an Exchange Property Unit which, for events
subsequent to the effective date of such supplemental agreement, shall be as nearly
equivalent as may be practicable to the adjustments provided for in this Section 5.04. The
above provisions of this Section 5.04(b)(i) shall similarly apply to successive
Reorganization Events.

     (ii) In the event the Company is involved in an event described in clause (1) or (2) of
Section 5.04(b)(i), in each case in which at least 10% of the consideration received by the
holders of Common Stock consists of cash or cash equivalents (a “Cash Merger”), then
following the Cash Merger each Holder of an Equity Unit shall have the right (a “Cash Merger
Early Settlement Right”) to accelerate and settle (“Cash Merger Early Settlement”) the Stock
Purchase Contract forming a part thereof, upon the conditions set forth below, for each $25
stated amount of each Equity Unit, at the Settlement Rate determined as if the Applicable
Market Value equaled the “stock price”, as such term is used in the definition of Make-Whole
Shares, and receive, under such circumstances, the applicable Make-Whole Shares; provided
that no Cash Merger Early Settlement will be permitted pursuant to this Section 5.04(b)(ii)
unless, at the time such Cash Merger Early Settlement is effected, there is an effective
Registration Statement with respect to any securities to be issued and delivered in
connection with such Cash Merger Early Settlement, if such a Registration Statement is
required (in the view of counsel, which need not be in the form of a written opinion, for the
Company) under the U.S. federal securities laws. If such a Registration Statement is so
required, the Company covenants and agrees to use commercially reasonable efforts to (x) have
in effect a Registration Statement covering any securities to be delivered in respect of the
Stock Purchase Contracts being settled and (y) provide a Prospectus in connection therewith,
in each case in a form that may be used in connection with such Cash Merger Early Settlement.

     Within five Business Days of the completion of a Cash Merger, the Company shall provide
written notice to Holders of Equity Units of such completion of a Cash Merger, which shall
specify the deadline for submitting the notice to settle early in cash pursuant to this
Section 5.04(b)(ii), the date on which such Cash Merger Early Settlement shall occur (which
date shall be at least 10 days after the date of such written notice by the Company, but
which shall in no event be later than the earlier of (x) 20 days after the date of such
notice and (y) two Business Days prior to the next Stock Purchase Date) (the “Cash Merger
Early Settlement Date”) and the date by which each Holder’s Cash Merger Early Settlement
Right must be exercised. The notice will set forth, among other things, the applicable
Settlement Rate and the amount (per share of Common Stock) of cash, securities, other
consideration and, if applicable, Make-Whole Shares receivable by the Holder upon settlement.
In addition, if a Holder effects a Cash Merger Early Settlement of some or all of its Stock
Purchase Contracts, such Holder shall be entitled to receive, on the Cash Merger Early
Settlement Date, the aggregate amount of any accrued and unpaid Contract Adjustment Payments
since the immediately preceding Payment Date with respect to such Stock Purchase Contracts
and the Company shall credit such amount against the amount otherwise payable by the Holders
to effect such Cash Merger Early Settlement (unless the Cash Merger Early Settlement Date
occurs after a Record Date and before the related Payment Date, in which case the applicable
Purchase Price shall not be reduced by the amount of accrued and unpaid Contract Adjustment
Payments).

     Corporate Units Holders and Treasury Units Holders may only effect Cash Merger Early
Settlement pursuant to this Section 5.04(b)(ii) in integral multiples of 40 Corporate
Units or

Purchase Contract Agreement

43

 

Treasury Units, as the case may be. Other than the provisions relating to timing of
notice and settlement, which shall be as set forth above, the provisions of Section 5.01(a)
shall apply with respect to a Cash Merger Early Settlement pursuant to this Section
5.04(b)(ii).

     In order to exercise the right to effect Cash Merger Early Settlement with respect to
any Stock Purchase Contracts, the Holder of the Certificate evidencing Equity Units shall
deliver, no later than 5:00 p.m. (New York City time) on the third Business Day immediately
preceding the Cash Merger Early Settlement Date, such Certificate to the Purchase Contract
Agent at the Corporate Trust Office duly endorsed for transfer to the Company or in blank
with the form of Election to Settle Early on the reverse thereof duly completed and
accompanied by payment of the Purchase Price (payable to the Company in immediately available
funds) in an amount equal to (A) the initial or adjusted Stated Amount multiplied by (B) the
number of Stock Purchase Contracts with respect to which the Holder has elected to effect
Cash Merger Early Settlement, less any credit in respect of Contract Adjustment Payments as
set forth above.

     If a Holder properly effects an effective Cash Merger Early Settlement in accordance
with the provisions of this Section 5.04(b)(ii), the Company will deliver (or will cause the
Collateral Agent to deliver) to the Holder on the Cash Merger Early Settlement Date in
respect of each Equity Unit so settled:

	 	(1)	 	the kind and amount of securities, cash or other property
receivable upon such Cash Merger by a holder of the number of shares of Common
Stock issuable on account of each Stock Purchase Contract if each remaining Stock
Purchase Date had occurred immediately prior to such Cash Merger (based on the
Settlement Rate in effect at such time), assuming such holder of Common Stock is
not a Constituent Person or an Affiliate of a Constituent Person to the extent
such Cash Merger provides for different treatment of Common Stock held by the
Constituent Person and Affiliates of the Constituent Person and non-affiliates
and such Holder failed to exercise its rights of election, if any, as to the kind
or amount of securities, cash and other property receivable upon such Cash Merger
(provided that if the kind or amount of securities, cash and other property
receivable upon such Cash Merger is not the same for each share of Common Stock
held immediately prior to such Cash Merger, then for the purpose of this Section
5.04(b)(ii), the kind and amount of securities, cash and other property
receivable upon such Cash Merger will be deemed to be the weighted average of the
types and amounts of consideration received by the holders of Common Stock that
affirmatively make an election (or of all such holders if none make an
election)). For the avoidance of doubt, for the purposes of determining the
appropriate Settlement Rate to be applied in the foregoing sentence, the date of
the closing of the Cash Merger shall be deemed to be the relevant Stock Purchase
Date;
	 
	 	(2)	 	the applicable Debentures or applicable Qualifying Treasury
Securities, as the case may be, related to the Stock Purchase Contracts with
respect to which the Holder is effecting a Cash Merger Early Settlement;
	 
	 	(3)	 	the Make-Whole Shares, if any; and

Purchase Contract Agreement

44

 

	 	(4)	 	if so required under the Securities Act, a Prospectus as
contemplated by this Section 5.04(b)(ii).

     If an interest in the Treasury Portfolio has replaced the Debentures of any series as a
component of Corporate Units, Holders of the Corporate Units will receive, on the next Stock
Purchase Date, $1,000 in cash for each 40 Corporate Units as to which they have exercised their
Cash Merger Early Settlement Right plus the allocable amount of the Proceeds at maturity of the
securities described in clause (iii) of the definition of Treasury Portfolio, representing their
respective interest in the Treasury Portfolio.

     (c) Successive Adjustments. After an adjustment to a Fixed Settlement Rate under this Section
5.04, any subsequent event requiring an adjustment under this Section 5.04 shall cause an
adjustment to such Fixed Settlement Rate as so adjusted.

     (d) Multiple Adjustments. For the avoidance of doubt, if an event occurs that would trigger
an adjustment to a Fixed Settlement Rate pursuant to this Section 5.04 under more than one
subsection hereof, such event, to the extent fully taken into account in a single adjustment, shall
not result in multiple adjustments hereunder.

     (e) Other Adjustments. The Company may, but shall not be required to, make such increases in
the Fixed Settlement Rate, in addition to those required by this Section, as the Board of Directors
considers to be advisable in order to avoid or diminish any income tax to any holders of shares of
Common Stock resulting from any dividend or distribution of stock or issuance of rights or warrants
to purchase or subscribe for stock or from any event treated as such for income tax purposes or for
any other reason. Any such adjustment to the Fixed Settlement Rate shall be proportionally made to
both the Maximum Settlement Rate and the Minimum Settlement Rate.

     Section 5.05 Notice of Adjustments and Certain Other Events.

     (a) Whenever a Fixed Settlement Rate is adjusted as provided under Section 5.04(a), Section
5.04(b) or Section 5.04(e), the Company shall within 10 Business Days following the occurrence of
an event that requires such adjustment (or if the Company is not aware of such occurrence, as soon
as reasonably practicable after becoming so aware) or the date the Company makes an adjustment
pursuant to Section 5.04(e):

     (i) compute each adjusted Fixed Settlement Rate in accordance with Section 5.04 and
prepare and transmit to the Purchase Contract Agent an Officers’ Certificate setting forth
each adjusted Fixed Settlement Rate, the method of calculation thereof in reasonable detail,
and the facts requiring such adjustment and upon which such adjustment is based; and

     (ii) provide a written notice to the Holders of the Equity Units of the occurrence of
such event and a statement in reasonable detail setting forth the method by which the
adjustment to each Fixed Settlement Rate was determined and setting forth each adjusted Fixed
Settlement Rate.

     (b) The Purchase Contract Agent shall not at any time be under any duty or responsibility to
any Holder of Equity Units to determine whether any facts exist that may require any adjustment of
each Fixed Settlement Rate or with respect to the nature or extent or calculation of any such
adjustment when made, or with respect to the method employed in making the same. The Purchase
Contract Agent shall be

Purchase Contract Agreement

45

 

fully authorized and protected in relying on any Officers’ Certificate
delivered pursuant to Section 5.05(a)(i) and any adjustment contained therein and the Purchase
Contract Agent shall not be deemed to have knowledge of any adjustment unless and until it has
received such certificate. The Purchase Contract Agent shall not be accountable with respect to
the validity or value (or the kind or amount) of any shares of Common Stock, or of any securities
or property, that may at the time be issued or delivered with respect to any Stock Purchase
Contract; and the Purchase Contract Agent makes no representation with respect thereto. The
Purchase Contract Agent shall not be responsible for any failure of the Company to issue, transfer
or deliver any shares of Common Stock pursuant to a Stock Purchase Contract or to comply with any
of the duties, responsibilities or covenants of the Company contained in this Article V.

     Section 5.06 Termination Event; Notice.

     The Stock Purchase Contracts and all obligations and rights of the Company and the Holders
thereunder, including, without limitation, the rights of the Holders to receive and the obligation
of the Company to pay any Contract Adjustment Payments (including any accrued and unpaid Contract
Adjustment Payments), if the Company shall have such obligation, and the rights and obligations of
Holders to purchase Common Stock, shall immediately and automatically
terminate, without the necessity of any notice or action by any Holder, the Purchase Contract
Agent or the Company, if, prior to or on the Stock Purchase Date, a Termination Event shall have
occurred.

     Upon and after the occurrence of a Termination Event, the Equity Units shall thereafter
represent the right to receive the applicable Debentures or the applicable Qualifying Treasury
Securities, as the case may be, forming part of such Equity Units, in accordance with the
provisions of Section 5.04 of the Pledge Agreement. Upon the occurrence of a Termination Event,
the Company shall promptly but in no event later than two Business Days thereafter give written
notice to the Purchase Contract Agent, the Collateral Agent and the Holders, at their addresses as
they appear in the Security Register.

     Section 5.07 Early Settlement.

     (a) Subject to and upon compliance with the provisions of this Section 5.07, at the option of
the Holder thereof, Stock Purchase Contracts underlying Corporate Units may be settled early
(“Early Settlement”) at any time (other than during a Blackout Period) on or prior to the second
Business Day immediately preceding any Stock Purchase Date; provided that no Early Settlement will
be permitted pursuant to this Section 5.07 unless, at the time such Early Settlement is effected,
there is an effective Registration Statement with respect to any securities to be issued and
delivered in connection with such Early Settlement, if such a Registration Statement is required
(in the view of counsel, which need not be in the form of a written opinion, for the Company) under
the Securities Act. If such a Registration Statement is so required, the Company covenants and
agrees to use commercially reasonable efforts to (i) have in effect a Registration Statement
covering any securities to be delivered in respect of the Stock Purchase Contracts being settled
and (ii) provide a Prospectus in connection therewith, in each case in a form that may be used in
connection with such Early Settlement.

     (b) In order to exercise the right to effect Early Settlement with respect to any Stock
Purchase Contracts, the Holder of the Certificate evidencing Equity Units shall deliver such
Certificate on or prior to the second Business Day immediately preceding any Stock Purchase Date to
the Purchase Contract Agent at the Corporate Trust Office duly endorsed for transfer to the Company
or in blank with the “Election to Settle Early” form on the reverse thereof duly completed and
accompanied by payment

Purchase Contract Agreement

46

 

(payable to the Company in immediately available funds) in an amount (the
"Early Settlement Amount”) equal to the sum of:

     (i) (A) the Stated Amount multiplied by (B) the number of Stock Purchase Contracts with
respect to which the Holder has elected to effect Early Settlement, plus

     (ii) if such delivery is made with respect to any Stock Purchase Contracts during the
period from the close of business on any Record Date next preceding any Payment Date to the
opening of business on such Payment Date, an amount equal to the Contract Adjustment Payments
payable on such Payment Date with respect to such Stock Purchase Contracts, unless such
Contract Adjustment Payment has been deferred pursuant to Section 5.11.

     Except as provided in the immediately preceding sentence, no payment shall be made upon Early
Settlement of any Stock Purchase Contract on account of any Contract Adjustment Payments accrued on
such Stock Purchase Contract or on account of any dividends on the Common Stock issued upon such
Early Settlement. If the foregoing requirements are first satisfied with respect to Stock Purchase
Contracts underlying any Equity Units by 5:00 p.m. (New York City time) on a Business Day, such day
shall be the “Early Settlement Date” with respect to such Equity Units and if such requirements are
first satisfied after 5:00 p.m. (New York City time) on a Business Day or on a day that is not a
Business Day, the “Early Settlement Date” with respect to such Equity Units shall be the next
succeeding Business Day.

     Upon the receipt of such Certificate and Early Settlement Amount from the Holder, the Purchase
Contract Agent shall pay to the Company such Early Settlement Amount, the receipt of which payment
the Company shall confirm in writing. The Purchase Contract Agent shall then, in accordance with
Section 5.06 of the Pledge Agreement, notify the Collateral Agent that (A) such Holder has elected
to effect an Early Settlement, which notice shall set forth the number of
such Stock Purchase Contracts as to which such Holder has elected to effect Early Settlement
and (B) the Purchase Contract Agent has received from such Holder, and paid to the Company as
confirmed in writing by the Company, the related Early Settlement Amount.

     Holders of Equity Units may only effect Early Settlement pursuant to this Section 5.07 in
integral multiples of 40 Equity Units.

     Upon Early Settlement of the Stock Purchase Contracts, the rights of the Holders to receive
and the obligation of the Company to pay any Contract Adjustment Payments (including any accrued
and unpaid Contract Adjustment Payments) with respect to such Stock Purchase Contracts shall
immediately and automatically terminate, provided that if such Early Settlement occurs after the
close of business on a Record Date and on or prior to the next succeeding Payment Date, then the
Contract Adjustment Payment due and payable on such Payment Date will be paid on such Payment Date
to the Person who was the record holder of the applicable Equity Units on the applicable Record
Date.

     (c) Upon Early Settlement of Stock Purchase Contracts by a Holder of the related Equity Units,
the Company shall issue, and the Holder shall be entitled to receive, a number of newly issued or
treasury shares of Common Stock equal to the Minimum Settlement Rate, as adjusted in the same
manner and the same time as the Fixed Settlement Rates are adjusted (the “Early Settlement Rate”).

     (d) No later than the third Business Day after the applicable Early Settlement Date, the
Company shall cause:

Purchase Contract Agreement

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     (i) the shares of Common Stock issuable upon Early Settlement of Stock Purchase
Contracts to be issued and delivered, together with payment in lieu of any fraction of a
share, as provided in Section 5.08; and

     (ii) the related Pledged Debentures, in the case of Corporate Units, or the related
Pledged Treasury Securities, in the case of Treasury Units, to be released from the Pledge by
the Collateral Agent, free and clear of the Company’s security interest therein, and
transferred, in each case, to the Purchase Contract Agent for delivery to the Holder thereof
or its designee.

     (e) Upon Early Settlement of any Stock Purchase Contracts, and subject to receipt of shares of
Common Stock from the Company and the Debentures or Qualifying Treasury Securities, as the case may
be, from the Securities Intermediary, as applicable, the Purchase Contract Agent shall, in
accordance with the instructions provided by the Holder thereof on the applicable form of Election
to Settle Early on the reverse of the Certificate evidencing the related Equity Units:

     (i) transfer to the Holder the Debentures or Treasury Securities, as the case may be,
forming a part of such Equity Units, and

     (ii) deliver to the Holder by book-entry transfer or in the form of a certificate or
certificates for the full number of shares of Common Stock issuable upon such Early
Settlement, together with payment in lieu of any fraction of a share, as provided in Section
5.08, as received from the Company.

     (f) In the event that Early Settlement is effected with respect to Stock Purchase Contracts
underlying less than all the Equity Units evidenced by a Certificate, upon such Early Settlement
the Company shall execute and the Purchase Contract Agent shall execute on behalf of the Holder,
authenticate and deliver to the Holder thereof, at the expense of the Company, a Certificate
evidencing the Equity Units as to which Early Settlement was not effected.

     (g) A Holder of an Equity Unit who effects Early Settlement may elect to have the Separate
Debentures remarketed in accordance with the provisions of Section 5.02.

     Section 5.08 No Fractional Shares.

     No fractional shares of Common Stock shall be issued or delivered upon settlement on any Stock
Purchase Date, or upon Early Settlement or Cash Merger Early Settlement of any Stock Purchase
Contracts. If Certificates evidencing more than one Stock Purchase Contract shall be surrendered
for settlement at one time by the same Holder, the number of full shares of Common Stock that shall
be delivered upon settlement shall be computed on the basis of the aggregate number of Stock
Purchase Contracts evidenced by the Certificates so surrendered. Instead of any fractional share
of Common Stock that would otherwise be deliverable upon settlement of any Stock Purchase Contracts
on any Stock Purchase Date, or upon Early Settlement or Cash Merger Early Settlement, the Company,
through the Purchase Contract Agent, shall make a cash payment in respect of such fractional
interest in an amount equal to the percentage of such fractional share multiplied by the Closing
Price of the Common Stock as of the Trading Day immediately preceding such Stock Purchase Date, or
as of the third Trading Day preceding such Early Settlement or Cash Merger Early Settlement. The
Company shall provide the Purchase Contract Agent from time to time with sufficient funds to permit
the Purchase Contract Agent to make all cash payments required by this Section 5.08 in a timely
manner.

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     Section 5.09 Charges and Taxes.

     The Company will pay all stock transfer and similar taxes attributable to the initial issuance
and delivery of the shares of Common Stock pursuant to the Stock Purchase Contracts; provided,
however, that the Company shall not be required to pay any such tax or taxes that may be payable in
respect of any exchange of, or substitution for, a Certificate evidencing Equity Units or any
issuance of a share of Common Stock in a name other than that of the registered Holder of a
Certificate surrendered in respect of the Equity Units evidenced thereby, other than in the name of
the Purchase Contract Agent, as custodian for such Holder, and the Company shall not be required to
issue or deliver such certificate or share of Common Stock unless or until the Person or Persons
requesting the transfer or issuance thereof shall have paid to the Company the amount of such tax
or shall have established to the satisfaction of the Company that such tax has been paid.

     Section 5.10 Contract Adjustment Payments.

     (a) Subject to Section 5.10(d) and Section 5.11, the Company shall pay, on each Payment Date,
the Contract Adjustment Payments (net of any withholding tax required by law to be withheld by the
Company on such payments, which shall be remitted to the appropriate taxing jurisdiction and shall
be treated as if paid hereunder) payable in respect of each Stock Purchase Contract to the Person
in whose name a Certificate is registered at the close of business on the Record Date. The
Contract Adjustment Payments will be payable at the office of the Purchase Contract Agent in the
Borough of Manhattan, New York City maintained for that purpose. Contract Adjustment Payments will
be payable, at the option of the Company, by check mailed to the address of the Person entitled
thereto at such Person’s address as it appears on the Security Register, or, at the Company’s
option, by wire transfer to the account designated by such Person by a prior written notice to the
Purchase Contract Agent. If any date on which Contract Adjustment Payments are to be made is not a
Business Day, then payment of the Contract Adjustment Payments payable on such date will be made on
the next succeeding day that is a Business Day (and without any interest in respect of such delay).
Contract Adjustment Payments payable for any period will be computed on the basis of a 360-day
year of twelve 30-day months. The Contract Adjustment Payments will accrue from May 16, 2008.

     (b) Upon the occurrence of a Termination Event, the Company’s obligation to pay future
Contract Adjustment Payments (including any accrued Contract Adjustment Payments) shall cease
without any further action of any Person.

     (c) Each Certificate delivered under this Agreement upon registration of transfer of or in
exchange for or in lieu of (including as a result of a Collateral Substitution or the recreation of
Corporate Units) any other Certificate shall carry the right to accrued and unpaid Contract
Adjustment Payments, which right was carried by the Stock Purchase Contracts underlying such other
Certificates.

     (d) In the case of any Equity Units with respect to which Early Settlement or Cash Merger
Early Settlement of the underlying Stock Purchase Contract is effected on a date that is after any
Record Date and prior to or on the next succeeding Payment Date, Contract Adjustment Payments
otherwise payable on such Payment Date shall be payable on such Payment Date notwithstanding such
Early Settlement or Cash Merger Early Settlement, and such Contract Adjustment Payments shall be
paid to the Person in whose name the Certificate evidencing such Equity Units is registered at the
close of business on such Record Date, it being understood that the Holder electing Early
Settlement must make the required payment in order to elect Early Settlement and the applicable
Purchase Price payable by the Holder electing Cash Merger Early Settlement shall not be reduced by
the amount of such payment.

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Except as otherwise expressly provided in the immediately preceding sentence, Contract
Adjustment Payments that would otherwise be payable after the Early Settlement or Cash Merger Early
Settlement Date with respect to such Stock Purchase Contract shall not be payable.

     (e) The Company’s obligations with respect to Contract Adjustment Payments will be
subordinated and junior in right of payment to the Company’s obligations under any existing or
future Senior Debt as provided in this Section 5.10. The Company’s obligations with respect to
Contract Adjustment Payments will rank pari passu with the Company’s Debentures, 6.25% Series A-1
Junior Subordinated Debentures, 5.75% Series A-2 Junior Subordinated Debentures, 4.875% Series A-3
Junior Subordinated Debentures, 6.45% Series A-4 Junior Subordinated Debentures and 7.70% Series
A-5 Junior Subordinated Debentures.

     (f) In the event of (a) any insolvency or bankruptcy case or proceeding, or any receivership,
liquidation, reorganization or similar case or proceeding in connection therewith, relative to the
Company or to its creditors, as such, or to its assets, or (b) any liquidation, dissolution or
other winding up of the Company, whether voluntary or involuntary and whether or not involving
insolvency or bankruptcy, or (c) any assignment for the benefit of creditors or any other
marshalling of assets and liabilities of the Company, then and in any such event the holders of
Senior Debt shall be entitled to receive payment in full of all amounts due or to become due on or
in respect of all Senior Debt (including any interest accruing thereon after the commencement of
any such case of proceeding), or provision shall be made for such payment in cash or cash
equivalents or otherwise in a manner satisfactory to the holders of Senior Debt, before the Holders
are entitled to receive any Contract Adjustment Payment, and to that end the holders of Senior Debt
shall be entitled to receive, for application to the payment thereof, any payment of distribution
of any kind or character, whether in cash, property or securities, including any such payment or
distribution which may be payable or deliverable by reason of the payment of any other indebtedness
of the Company being subordinated to the payment of the Contract Adjustment Payment, which may be
payable of deliverable in respect of the Contract Adjustment Payment in any such case, proceeding,
liquidation, dissolution or other winding up event. The consolidation of the Company with, or the
merger of the Company into, or the conveyance, transfer or lease by the Company of its properties
and assets substantially as an entirety to, another Person, or the liquidation or dissolution of
the Company following any such conveyance or transfer, shall not be deemed a dissolution, winding
up, liquidation, reorganization, assignment for the benefit of creditors or marshalling of assets
and liabilities of the Company for the purposes of this paragraph (f).

     (g) Subject to the last sentence of this paragraph (g), in the event that any event of default
with respect to any Senior Debt specified in clause (i) of the definition thereof in a principal
amount in excess of $100,000,000 shall have occurred and be continuing and resulted in the
acceleration of the payment of the principal of such Senior Debt prior to the date on which it
would otherwise have become due and payable (provided that if such declaration of acceleration
shall have been rescinded or annulled, then such acceleration shall be deemed not to have occurred
for the purpose of this paragraph (g)), then no Contract Adjustment Payment (including any payment
which may be payable by reason of the payment of any other indebtedness of the Company being
subordinated to the payment of the Contract Adjustment Payments) shall be made by the Company. No
acceleration of any Senior Debt shall be deemed to be an acceleration of the kind specified above
if (x) the Company shall be disputing the occurrence or continuation of such acceleration and (y)
no final judgment holding that such acceleration has occurred shall have been issued. For this
purpose, a “final judgment” means a judgment that is issued by a court having jurisdiction over the
Company, is binding on the Company, is in full force and effect and is not subject to judicial
appeal or review (including because the time within which a party may seek

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appeal or review has expired), provided that, if any such judgment has been issued but is
subject to judicial appeal or review, it shall nevertheless be deemed to be a final judgment unless
the Company shall in good faith be prosecuting such appeal or a proceeding for such review.

     (h) For purposes of Section 5.10(f) through (q), the words “cash, property or securities”
shall be deemed not to include shares of stock of the Company as reorganized or readjusted, or
securities of the Company or any other Person provided for by a plan of reorganization or
readjustment, the payment of which is subordinated at least to the extent provided in Section
5.10(f) through (q) with respect to such Contract Adjustment Payments on the Equity Units to the
payment of all existing and future Senior Debt that may at the time be outstanding.

     (i) Subject to the irrevocable payment in full of all existing and future Senior Debt, the
Holders of the Equity Units shall be subrogated (equally and ratably with the holders of all
obligations of the Company that by their express terms are subordinated to Senior Debt of the
Company to the same extent as payment of the Contract Adjustment Payments in respect of the Stock
Purchase Contracts underlying the Equity Units is subordinated and that are entitled to like rights
of subrogation) to the rights of the holders of Senior Debt to receive payments or distributions of
cash, property or securities of the Company applicable to the Senior Debt until all such Contract
Adjustment Payments owing on the Equity Units shall be paid in full, and as between the Company,
its creditors other than holders of such Senior Debt and the Holders, no such payment or
distribution made to the holders of Senior Debt by virtue of Section 5.10(f) through (q) that
otherwise would have been made to the Holders shall be deemed to be a payment by the Company on
account of such Senior Debt, it being understood that the provisions of Section 5.10(f) through (q)
are and are intended solely for the purpose of defining the relative rights of the Holders, on the
one hand, and the holders of Senior Debt, on the other hand.

     (j) Nothing contained in Section 5.10(f) through (q) or elsewhere in this Agreement or in the
Equity Units is intended to or shall impair, as among the Company, its creditors other than the
holders of Senior Debt and the Holders, the obligation of the Company, which is absolute and
unconditional, to pay to the Holders such Contract Adjustment Payments on the Equity Units as and
when the same shall become due and payable in accordance with their terms, or is intended to or
shall affect the relative rights of the Holders and creditors of the Company other than the holders
of Senior Debt, nor shall anything herein or therein prevent the Purchase Contract Agent or any
Holder from exercising all remedies otherwise permitted by applicable law upon default under this
Agreement, subject to the rights, if any, under Section 5.10(f) through (q), of the holders of
Senior Debt in respect of cash, property or securities of the Company received upon the exercise of
any such remedy.

     (k) Upon payment or distribution of assets of the Company referred to in Section 5.10(f)
through (q), the Purchase Contract Agent and the Holders shall be entitled to rely upon any order
or decree made by any court of competent jurisdiction in which any such dissolution, winding up,
liquidation or reorganization proceeding affecting the affairs of the Company is pending or upon a
certificate of the trustee in bankruptcy, receiver, assignee for the benefit of creditors,
liquidating trustee or Purchase Contract Agent or other person making any payment or distribution,
delivered to the Purchase Contract Agent or to the Holders, for the purpose of ascertaining the
Persons entitled to participate in such payment or distribution, the holders of the Senior Debt and
other indebtedness of the Company, the amount thereof or payable thereon, the amount or amounts
paid or distributed thereon and all other facts pertinent thereto or to Section 5.10(f) through
(q).

     (l) The Purchase Contract Agent shall be entitled to rely on the delivery to it of a written
notice by a Person representing himself to be a holder of Senior Debt (or a trustee or
representative on

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behalf of such holder) to establish that such notice has been given by a holder of Senior Debt
or a trustee or representative on behalf of any such holder or holders. In the event that the
Purchase Contract Agent determines in good faith that further evidence is required with respect to
the right of any Person as a holder of Senior Debt to participate in any payment or distribution
pursuant to Section 5.10(f) through (q), the Purchase Contract Agent may request such Person to
furnish evidence to the reasonable satisfaction of the Purchase Contract Agent as to the amount of
Senior Debt held by such Person, the extent to which such Person is entitled to participate in such
payment or distribution and any other facts pertinent to the rights of such Person under Section
5.10(f) through (q), and, if such evidence is not furnished, the Purchase Contract Agent may defer
payment to such Person pending judicial determination as to the right of such Person to receive
such payment.

     (m) Nothing contained in Section 5.10(f) through (q) shall affect the obligations of the
Company to make, or prevent the Company from making, payment of the Contract Adjustment Payments,
except as otherwise provided in this Section 5.10(f) through (q).

     (n) Each Holder of Equity Units, by its acceptance thereof, shall be deemed to have authorized
and directed the Purchase Contract Agent on its behalf to take such action as may be necessary or
appropriate to effectuate the subordination provided in Section 5.10(f) through (q) and appointed
the Purchase Contract Agent its attorney-in-fact, as the case may be, for any and all such
purposes.

     (o) The Company shall give prompt written notice to the Purchase Contract Agent of any fact
known to the Company that would prohibit the making of any payment of moneys to or by the Purchase
Contract Agent in respect of the Equity Units pursuant to the provisions of this Section.
Notwithstanding the provisions of Section 5.10(f) through (q) or any other provisions of this
Agreement, the Purchase Contract Agent shall not be charged with knowledge of the existence of any
facts that would prohibit the making of any payment of moneys to or by the Purchase Contract Agent,
or the taking of any other action by the Purchase Contract Agent, unless and until the Purchase
Contract Agent shall have received written notice thereof mailed or delivered to the Purchase
Contract Agent at its Corporate Trust Office department from the Company, any Holder, or the holder
or representative of any Senior Debt; provided that if at least two Business Days prior to the date
upon which by the terms hereof any such moneys may become payable for any purpose, the Purchase
Contract Agent shall not have received with respect to such moneys the notice provided for in this
Section, then, anything herein contained to the contrary notwithstanding, the Purchase Contract
Agent shall have full power and authority to receive such moneys and to apply the same to the
purpose for which they were received and shall not be affected by any notice to the contrary that
may be received by it within two Business Days prior to or on or after such date.

     (p) The Purchase Contract Agent in its individual capacity shall be entitled to all the rights
set forth in this Section with respect to any Senior Debt at the time held by it, to the same
extent as any other holder of Senior Debt and nothing in this Agreement shall deprive the Purchase
Contract Agent of any of its rights as such holder.

     (q) No right of any present or future holder of any Senior Debt to enforce the subordination
herein shall at any time or in any way be prejudiced or impaired by any act or failure to act on
the part of the Company or by any noncompliance by the Company with the terms, provisions and
covenants of this Agreement, regardless of any knowledge thereof which any such holder may have or
be otherwise charged with.

     Without in any way limiting the generality of the foregoing paragraph, the holders of Senior
Debt may, at any time and from time to time, without the consent of or notice to the Purchase
Contract Agent

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or the Holders, without incurring responsibility to the Holders and without impairing or
releasing the subordination provided by this Section 5.10 or the obligations hereunder of the
Holders to the holders of Senior Debt, do any one or more of the following: (i) change the manner,
place or terms of payment or extend the time of payment of, or renew or alter, Senior Debt or
otherwise amend or supplement in any manner Senior Debt or any instrument evidencing the same or
any agreement under which Senior Debt is outstanding; (ii) sell, exchange, release or otherwise
deal with any property pledged, mortgaged or otherwise securing Senior Debt; (iii) release any
Person liable in any manner for the collection of Senior Debt; and (iv) exercise or refrain from
exercising any rights against the Company and any other Person.

     (r) Nothing in this Section 5.10 shall apply to claims of, or payments to, the Purchase
Contract Agent under or pursuant to Section 7.07.

     (s) With respect to the holders of existing and future Senior Debt, (i) the duties and
obligations of the Purchase Contract Agent shall be determined solely by the express provisions of
this Agreement; (ii) the Purchase Contract Agent shall not be liable to any such holders if it
shall, acting in good faith, mistakenly pay over or distribute to the Holders or to the Company or
any other Person cash, property or securities to which any holders of existing and future Senior
Debt shall be entitled by virtue of this Section 5.10 or otherwise; (iii) no implied covenants or
obligations shall be read into this Agreement against the Purchase Contract Agent; and (iv) the
Purchase Contract Agent shall not be deemed to be a fiduciary as to such holders.

     Section 5.11 Deferral of Contract Adjustment Payments.

     (a) The Company shall have the right, at any time prior to August 1, 2011, to defer the
payment of any or all of the Contract Adjustment Payments otherwise payable on any Payment Date,
but only if the Company shall give the Holders and the Purchase Contract Agent written notice of
its election to defer each such Contract Adjustment Payment (specifying the amount to be deferred)
at least one Business Day prior to such Record Date. Any failure of the Company to make any
Contract Adjustment Payment within five Business Days of the Payment Date shall be deemed without
any further action of any Person to commence a deferral period with respect to that Contract
Adjustment Payment. Any Contract Adjustment Payments so deferred shall, to the extent permitted by
law, accrue interest thereon at the rate of 5.67% per year (computed on the basis of a 360-day year
of twelve 30-day months), compounding on each succeeding Payment Date, until paid in full (such
deferred installments of Contract Adjustment Payments, if any, together with the additional
Contract Adjustment Payments, if any, accrued thereon, being referred to herein as the “Deferred
Contract Adjustment Payments”). Deferred Contract Adjustment Payments, if any, shall be due on the
next succeeding Payment Date except to the extent that payment is deferred pursuant to this Section
5.11. No Contract Adjustment Payments may be deferred to a date that is after August 1, 2011 and
no such deferral period may end other than on a Payment Date. If the Stock Purchase Contracts are
terminated upon the occurrence of a Termination Event, the Holder’s right to receive Contract
Adjustment Payments, if any, and any Deferred Contract Adjustment Payments, will terminate.

     (b) In the event that the Company elects to defer the payment of Contract Adjustment Payments
on the Stock Purchase Contracts until a Payment Date prior to the Third Stock Purchase Date, then
all Deferred Contract Adjustment Payments, if any, shall be payable to the registered Holders as of
the close of business on the Record Date immediately preceding such Payment Date. The Company may
elect to make payment of deferred Contract Adjustment Payments to Holders who are registered at the
close of business on a “Special Record Date” which shall be fixed to be not more than 15 Business
Days and not less than 10 Business Days prior to the date of the proposed payment. The Special
Record Date

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shall not occur less than 10 Business Days after receipt by the Purchase Contract Agent of the
notice of the proposed payment by the Company. Upon receipt of such notice, the Purchase Contract
Agent shall promptly notify such registered Holders not less than 10 days prior to the Special
Record Date. If the Company establishes a Special Record Date, the Contract Adjustment Payments
will cease to be payable to Holders of record on the applicable Record Date and instead will be
payable to Holders of record on the Special Record Date.

     (c) In the event that the Company elects to defer the payment of Contract Adjustment Payments
on the Third Stock Purchase Date, each Holder will receive in respect of such deferred payments on
such Stock Purchase Date in lieu of a cash payment, in the sole discretion of the Company, either
(i) a number of shares of Common Stock (in addition to a number of shares of Common Stock per
Equity Units equal to the Settlement Rate) equal to (A) the aggregate amount of Deferred Contract
Adjustment Payments payable to such Holder (net of any required tax withholding on such Deferred
Contract Adjustment Payment, which shall be remitted to the appropriate taxing jurisdiction)
divided by (B) the greater of (x) the Applicable Market Value and (y) $12.67, subject in each case
to adjustment in the same manner and under the same circumstances as the Fixed Settlement Rates
pursuant to Section 5.04, or (ii) Additional Debentures that will (A) have a principal amount equal
to the aggregate amount of Deferred Contract Adjustment Payments, (B) mature on the later of
August 1, 2014 or the date that is five years after commencement of the deferral period, (C) bear
interest at an annual rate equal to the then market rate of interest for similar instruments (not
to exceed 10%), as determined by a nationally recognized investment banking firm selected by the
Company, (D) rank pari passu with the Debentures and be issued as a series of debt securities under
the Base Indenture, (E) provide for optional deferral on the same basis as the Debentures and
(F) be redeemable at the option of the Company at any time at their principal amount plus accrued
and unpaid interest through the date of redemption.

     (d) No fractional shares of Common Stock will be issued by the Company with respect to the
payment of Deferred Contract Adjustment Payments on the Third Stock Purchase Date. In lieu of
fractional shares otherwise issuable with respect to such payment of Deferred Contract Adjustment
Payments, the Holder will be entitled to receive an amount in cash as provided in Section 5.08.

     (e) In the event the Company gives notice of a deferral period as provided in Section 5.11(a)
or a deferral period has commenced then, until the earlier of (x) the Termination Date, (y) the
date on which the Deferred Contract Adjustment Payments have been paid or (z) the date on which the
Additional Debentures are no longer outstanding, the Company shall be subject to the restrictions
set forth in Section 2.1(g) of each Supplemental Indenture.

ARTICLE VI

RIGHTS AND REMEDIES OF HOLDERS

     Section 6.01 Unconditional Right of Holders to Receive Contract Adjustment Payments and to
Purchase Shares of Common Stock.

     Each Holder of an Equity Unit shall have the right, which is absolute and unconditional,
(i) subject to Article V (and to any withholding tax), to receive each Contract Adjustment Payment
with respect to the Stock Purchase Contract comprising part of such Equity Unit on the respective
Payment Date for such Equity Unit and (ii) except upon and following a Termination Event, to
purchase shares of Common Stock pursuant to such Stock Purchase Contract on each Stock Purchase
Date and, in each such case, to institute suit for the enforcement of any such right to receive
Contract Adjustment Payments and

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the right to purchase shares of Common Stock, and such rights shall not be impaired without
the consent of such Holder.

     Section 6.02 Restoration of Rights and Remedies.

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

     Section 6.03 Rights and Remedies Cumulative.

     Except as otherwise provided with respect to the replacement or payment of mutilated,
destroyed, lost or stolen Certificates in the last paragraph of Section 3.10, no right or remedy
herein conferred upon or reserved 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 otherwise,
shall not prevent the concurrent assertion or employment of any other appropriate right or remedy.

     Section 6.04 Delay or Omission Not Waiver.

     No delay or omission of any Holder to exercise any right upon a default or remedy upon a
default shall impair any such right or remedy or constitute a waiver of any such right. Every
right and remedy given by this Article VI or by law to the Holders may be exercised from time to
time, and as often as may be deemed expedient, by such Holders.

     Section 6.05 Undertaking for Costs.

     All parties to this Agreement agree, and each Holder of an Equity Unit, by its acceptance of
such Equity Unit 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 Agreement, or in any suit against
the Purchase Contract Agent for any action taken, suffered or omitted by it as Purchase Contract
Agent, 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 and costs 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; provided that the provisions
of this Section shall not apply to any suit instituted by the Purchase Contract Agent or to any
suit instituted by the Company.

     Section 6.06 Waiver of Stay or Extension Laws.

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

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impede the execution of any power herein granted to the Purchase Contract Agent or the
Holders, but will suffer and permit the execution of every such power as though no such law had
been enacted.

ARTICLE VII

THE PURCHASE CONTRACT AGENT

     Section 7.01 Certain Duties and Responsibilities.

     (a) The Purchase Contract Agent:

     (i) undertakes to perform, with respect to the Equity Units, such duties and only such
duties as are or will be specifically set forth in this Agreement, the Pledge Agreement and
the Remarketing Agreement to be performed by the Purchase Contract Agent and no implied
covenants or obligations shall be read into this Agreement, the Pledge Agreement or any
Remarketing Agreement against the Purchase Contract Agent; and

     (ii) in the absence of bad faith or negligence on its part, may, with respect to the
Equity Units, conclusively rely, as to the truth of the statements and the correctness of
the opinions expressed therein, upon certificates or opinions furnished to the Purchase
Contract Agent and conforming to the requirements of this Agreement or the Pledge Agreement
or the Remarketing Agreement, as applicable, but in the case of any certificates or opinions
which by any provision hereof are specifically required to be furnished to the Purchase
Contract Agent, the Purchase Contract Agent shall be under a duty to examine the same to
determine whether or not they conform to the requirements of this Agreement, the Pledge
Agreement or any Remarketing Agreement, as applicable (but need not confirm or investigate
the accuracy of the mathematical calculations or other facts stated therein).

     (b) No provision of this Agreement, the Pledge Agreement or the Remarketing Agreement shall be
construed to relieve the Purchase Contract Agent from liability for its own negligent action, its
own negligent failure to act, or its own willful misconduct, except that:

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

     (ii) the Purchase Contract Agent shall not be liable for any error of judgment made in
good faith by a Responsible Officer, unless the Purchase Contract Agent was negligent in
ascertaining the pertinent facts; and

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

     (c) Whether or not therein expressly so provided, every provision of this Agreement, the
Pledge Agreement and the Remarketing Agreement relating to the conduct or affecting the liability
of or affording protection to the Purchase Contract Agent shall be subject to the provisions of
this Article.

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     (d) The Purchase Contract Agent is authorized to execute and deliver the Pledge Agreement and
the Remarketing Agreement in its capacity as Purchase Contract Agent.

     Section 7.02 Notice of Default.

     Upon any Responsible Officer of the Purchase Contract Agent becoming aware of a material
default by the Company under this Agreement and so notifying the Company, or Holders of not less
than 25% of the Outstanding Equity Units notifying the Company and the Purchase Contract Agent of
such a material default, the Company shall have 60 days from the date of such notice to cure the
potential default. If the Company fails to cure the material default within the 60-day period,
then within 30 days after the expiration of such 60-day period, the Purchase Contract Agent shall
transmit by mail to the Company and the Holders of Equity Units, as their names and addresses
appear in the Security Register, notice of such default hereunder, unless such material default
shall have been cured or waived.

     Section 7.03 Certain Rights of Purchase Contract Agent.

     Subject to the provisions of Section 7.01:

     (a) the Purchase Contract Agent may, in the absence of bad faith, conclusively rely and shall
be fully protected in acting or refraining from acting upon any resolution, certificate, statement,
instrument, opinion, report, notice, request, direction, consent, order, bond, Debentures, note,
other evidence of indebtedness or other paper or document believed by it to be genuine and to have
been signed or presented by the proper party or parties;

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

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

     (d) the Purchase Contract Agent may consult with counsel of its selection and the advice of
such counsel or any Opinion of Counsel shall be full and complete authorization and protection in
respect of any action taken, suffered or omitted by it hereunder, or under the Pledge Agreement or
the Remarketing Agreement, in good faith and in reliance thereon;

     (e) the Purchase Contract Agent shall not be bound to make any investigation into the facts or
matters stated in any resolution, certificate, statement, instrument, opinion, report, notice,
request, direction, consent, order, bond, Debenture, note, other evidence of indebtedness or other
paper or document, but the Purchase Contract Agent may make reasonable further inquiry or
investigation into such facts or matters related to the execution, delivery and performance of the
Stock Purchase Contracts, and, if the Purchase Contract Agent makes such further inquiry or
investigation, it shall be entitled to examine the relevant books, records and premises of the
Company, personally or by agent or attorney;

     (f) the Purchase Contract Agent may execute any of the powers hereunder or perform any duties
hereunder, or under the Pledge Agreement or the Remarketing Agreement, either directly or by or

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through agents, attorneys, custodians or nominees or an Affiliate and the Purchase Contract
Agent shall not be responsible for any misconduct or negligence on the part of any agent, attorney,
custodian or nominee or an Affiliate appointed with due care by it hereunder;

     (g) the Purchase Contract Agent shall be under no obligation to exercise any of the rights or
powers vested in it by this Agreement at the request or direction of any of the Holders pursuant to
this Agreement, unless such Holders shall have offered to the Purchase Contract Agent security or
indemnity reasonably satisfactory to the Purchase Contract Agent against the costs, expenses and
liabilities which might be incurred by it in compliance with such request or direction;

     (h) the Purchase Contract Agent shall not be liable for any action taken, suffered, or omitted
to be taken by it in the absence of bad faith, negligence or willful misconduct by it;

     (i) the Purchase Contract Agent shall not be deemed to have notice of any default hereunder
unless a Responsible Officer of the Purchase Contract Agent has actual knowledge thereof or unless
written notice of any event that is in fact such a default is received by the Purchase Contract
Agent at the Corporate Trust Office of the Purchase Contract Agent, and such notice references the
Equity Units and this Agreement;

     (j) the Purchase Contract Agent may request that the Company deliver an Officers’ Certificate
setting forth the names of individuals and/or titles of officers authorized at such time to take
specified actions pursuant to this Agreement, which Officers’ Certificate may be signed by any
person authorized to sign an Officers’ Certificate, including any person specified as so authorized
in any such certificate previously delivered and not superseded;

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

     (l) the Purchase Contract Agent shall not be required to initiate or conduct any litigation or
collection proceedings hereunder and shall have no responsibilities with respect to any default
hereunder except as expressly set forth herein;

     (m) in each case that the Purchase Contract Agent may or is required hereunder or under the
Pledge Agreement or the Remarketing Agreement to take any action, including without limitation to
make any determination or judgment, to give consents, to exercise rights, powers or remedies, or
otherwise to act hereunder or thereunder, the Purchase Contract Agent may seek direction from the
Holders of a majority in Stated Amount of the Outstanding Equity Units. The Purchase Contract
Agent shall not be liable with respect to any action taken or omitted to be taken by it in good
faith in accordance with the direction from the Holders of a majority in Stated Amount of the
Outstanding Equity Units. If the Purchase Contract Agent shall request direction from the Holders
of a majority in Stated Amount of the Outstanding Equity Units with respect to any action, the
Purchase Contract Agent shall be entitled to refrain from such action unless and until such the
Purchase Contract Agent shall have received direction from the Holders of a majority in Stated
Amount of the Outstanding Equity Units, and the Purchase Contract Agent shall not incur liability
to any Person by reason of so refraining; and

     (n) in no event shall the Purchase Contract Agent be responsible or liable for special,
indirect, or consequential loss or damage of any kind whatsoever (including, but not limited to,
loss of profit)

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irrespective of whether the Purchase Contract Agent has been advised of the likelihood of such
loss or damage and regardless of the form of action.

     Section 7.04 Not Responsible for Recitals or Issuance of Equity Units.

     The recitals contained herein, in the Pledge Agreement, the Remarketing Agreement and in the
Certificates shall be taken as the statements of the Company, and the Purchase Contract Agent
assumes no responsibility for their accuracy or validity. The Purchase Contract Agent makes no
representations as to the validity or sufficiency of either this Agreement or of the Equity Units,
or of the Pledge Agreement or the Pledge or the Collateral (other than for its certificates of
authentication of the Equity Units and its execution of the Certificates on behalf of the Holders
as attorney-in-fact) and shall have no responsibility for perfecting or maintaining the perfection
of any security interest in the Collateral. The Purchase Contract Agent shall not be accountable
for the use or application by the Company of the proceeds in respect of the Stock Purchase
Contracts.

     The Purchase Contract Agent shall only be responsible for transferring money, securities or
other property in accordance with the terms herein to the extent that such money, securities or
other property are actually received by the Purchase Contract Agent.

     Section 7.05 May Hold Equity Units.

     Any Security Registrar or any other agent of the Company, or the Purchase Contract Agent and
its Affiliates, in their individual or any other capacity, may become the owner or pledgee of
Equity Units and may otherwise deal with the Company, the Collateral Agent or any other Person with
the same rights it would have if it were not Security Registrar or such other agent, or the
Purchase Contract Agent. The Company may become the owner or pledgee of Equity Units.

     Section 7.06 Money Held in Custody.

     Money held by the Purchase Contract Agent in custody hereunder need not be segregated from the
Purchase Contract Agent’s other funds except to the extent required by law or provided herein. The
Purchase Contract Agent shall be under no obligation to invest or pay interest on any money
received by it hereunder except as otherwise provided hereunder or agreed in writing with the
Company.

     Section 7.07 Compensation and Reimbursement.

     The Company agrees:

     (a) to pay to the Purchase Contract Agent compensation for all services rendered by it
hereunder, under the Pledge Agreement and under the Remarketing Agreement as the Company and the
Purchase Contract Agent shall from time to time agree in writing;

     (b) except as otherwise expressly provided for herein, to reimburse the Purchase Contract
Agent upon its request for all reasonable expenses, disbursements and advances incurred or made by
the Purchase Contract Agent in accordance with any provision of this Agreement, the Pledge
Agreement and any Remarketing Agreement (including the reasonable compensation and the expenses and
disbursements of its agents and counsel) in connection with the negotiation, preparation, execution
and delivery and performance of this Agreement, the Pledge Agreement and any Remarketing Agreement
and any

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modification, supplement or waiver of any of the terms thereof, except any such expense,
disbursement or advance as shall have been caused by its own negligence, willful misconduct or bad
faith; and

     (c) to indemnify the Purchase Contract Agent and any predecessor Purchase Contract Agent (and
each of its directors, officers, agents and employees (collectively, the “Indemnitees”) for, and to
hold it harmless against, any loss, claim, damage, fine, penalty, liability or expense (including
reasonable fees and expenses of counsel) incurred without negligence, willful misconduct or bad
faith on its part, arising out of or in connection with the acceptance or administration of its
duties hereunder and under the Pledge Agreement and any Remarketing Agreement, including the
Indemnitees’ reasonable costs and expenses of defending themselves against any claim (whether
asserted by the Company, a Holder or any other Person) or liability in connection with the exercise
or performance of any of the Purchase Contract Agent’s powers or duties hereunder or thereunder.
In the case of any action, suit or proceeding with respect to which an Indemnitee may seek payments
pursuant to this Section 7.07, the Company, at its option, may defend such action, suit or
proceeding with counsel of its choice (which counsel shall be reasonably satisfactory to the
Indemnitee) and exercise sole and complete control over the defense of such action, suit or
proceeding.

     The provisions of this Section shall survive the resignation or removal of the Purchase
Contract Agent and the termination of this Agreement.

     Section 7.08 Corporate Purchase Contract Agent Required, Eligibility.

     There shall at all times be a Purchase Contract Agent hereunder which shall be a Person
organized and doing business under the laws of the United States of America, any State thereof or
the District of Columbia, authorized under such laws to exercise corporate trust powers, having (or
being a member of a bank holding company having) a combined capital and surplus of at least
$50,000,000 and subject to supervision or examination by Federal or State authority. If such Person
publishes reports of condition at least annually, pursuant to law or to the requirements of said
supervising or examining authority, then for the purposes of this Section, the combined capital and
surplus of such Person shall be deemed to be its combined capital and surplus as set forth in its
most recent report of condition so published. If at any time the Purchase Contract Agent shall
cease to be eligible in accordance with the provisions of this Section, it shall resign immediately
in the manner and with the effect hereinafter specified in this Article VII.

     Section 7.09 Resignation and Removal; Appointment of Successor.

     (a) No resignation or removal of the Purchase Contract Agent and no appointment of a successor
Purchase Contract Agent pursuant to this Article VII shall become effective until the acceptance of
appointment by the successor Purchase Contract Agent in accordance with the applicable requirements
of Section 7.10.

     (b) The Purchase Contract Agent may resign at any time by giving written notice thereof to the
Company 90 days prior to the effective date of such resignation. If the instrument of acceptance
by a successor Purchase Contract Agent required by Section 7.10 shall not have been delivered to
the Purchase Contract Agent within 60 days after the giving of such notice of resignation, the
resigning Purchase Contract Agent may petition, at its own expense, any court of competent
jurisdiction for the appointment of a successor Purchase Contract Agent.

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     (c) The Purchase Contract Agent may be removed at any time by Act of the Holders of a majority
in Stated Amount of the Outstanding Equity Units delivered to the Purchase Contract Agent and the
Company. If the instrument of acceptance by a successor Purchase Contract Agent required by
Section 7.10 shall not have been delivered to the Purchase Contract Agent within 60 days after such
Act, the Purchase Contract Agent being removed may petition any court of competent jurisdiction for
the appointment at the expense of the Company of a successor Purchase Contract Agent.

     (d) If at any time:

     (i) the Purchase Contract Agent shall cease to be eligible under Section 7.08 and shall
fail to resign after written request therefor by the Company or by Holders of not less than
10% of the Stated Amount of Outstanding Equity Units; or

     (ii) the Purchase Contract Agent shall become incapable of acting or shall be adjudged
a bankrupt or insolvent or a receiver of the Purchase Contract Agent or of its property
shall be appointed or any public officer shall take charge or control of the Purchase
Contract Agent or of its property or affairs for the purpose of rehabilitation, conservation
or liquidation, then, in any such case, (i) the Company by a Board Resolution may remove the
Purchase Contract Agent, or (ii) Holders of not less than 10% of the Stated Amount of
Outstanding Equity Units may, on behalf of all other similarly situated Holders, petition
any court of competent jurisdiction for the removal of the Purchase Contract Agent and the
appointment of a successor Purchase Contract Agent.

     (e) If the Purchase Contract Agent shall resign, be removed or become incapable of acting, or
if a vacancy shall occur in the office of Purchase Contract Agent for any cause, the Company, by a
Board Resolution, shall promptly appoint a successor Purchase Contract Agent and shall comply with
the applicable requirements of Section 7.10. If no successor Purchase Contract Agent shall have
been so appointed by the Company and accepted appointment in the manner required by Section 7.10,
Holders of not less than 10% of the Stated Amount of Outstanding Equity Units, on behalf of all
other similarly situated Holders, or the Purchase Contract Agent may petition at the expense of the
Company any court of competent jurisdiction for the appointment of a successor Purchase Contract
Agent.

     (f) The Company shall give, or shall cause such successor Purchase Contract Agent to give,
notice of each resignation and each removal of the Purchase Contract Agent and each appointment of
a successor Purchase Contract Agent by mailing written notice of such event by first-class mail,
postage prepaid, to all Holders as their names and addresses appear in the applicable Security
Register. Each notice shall include the name of the successor Purchase Contract Agent and the
address of its Corporate Trust Office.

     Section 7.10 Acceptance of Appointment by Successor.

     (a) In case of the appointment hereunder of a successor Purchase Contract Agent, every such
successor Purchase Contract Agent so appointed shall execute, acknowledge and deliver to the
Company and to the retiring Purchase Contract Agent an instrument accepting such appointment, and
thereupon the resignation or removal of the retiring Purchase Contract Agent shall become effective
and such successor Purchase Contract Agent, without any further act, deed or conveyance, shall
become vested with all the rights, powers, agencies and duties of the retiring Purchase Contract
Agent; but, on the request of the Company or the successor Purchase Contract Agent, such retiring
Purchase Contract Agent shall, upon payment of its charges, execute and deliver an instrument
transferring to such successor Purchase

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Contract Agent all the rights, powers and trusts of the retiring Purchase Contract Agent and
duly assign, transfer and deliver to such successor Purchase Contract Agent all property and money
held by such retiring Purchase Contract Agent hereunder.

     (b) Upon request of any such successor Purchase Contract Agent, the Company shall execute any
and all instruments for more fully and certainly vesting in and confirming to such successor
Purchase Contract Agent all such rights, powers and agencies referred to in subsection (a) of this
Section 7.10.

     (c) No successor Purchase Contract Agent shall accept its appointment unless at the time of
such acceptance such successor Purchase Contract Agent shall be qualified and eligible under this
Article VII.

     (d) No successor Purchase Contract Agent shall at the same time act as the Collateral Agent,
the Custodial Agent or the Securities Intermediary and the Company shall not act as the Purchase
Contract Agent.

     Section 7.11 Merger, Conversion, Consolidation or Succession to Business.

     Any Person into which the Purchase Contract Agent may be merged or converted or with which it
may be consolidated, or any Person resulting from any merger, conversion or consolidation to which
the Purchase Contract Agent shall be a party, or any Person succeeding to all or substantially all
the corporate trust business of the Purchase Contract Agent, shall be the successor of the Purchase
Contract Agent hereunder; provided that such Person shall be otherwise qualified and eligible under
this Article VII, without the execution or filing of any paper or any further act on the part of
any of the parties hereto. In case any Certificates shall have been authenticated and executed on
behalf of the Holders, but not delivered, by the Purchase Contract Agent then in office, any
successor by merger, conversion or consolidation to such Purchase Contract Agent may adopt such
authentication and execution and deliver the Certificates so authenticated and executed with the
same effect as if such successor Purchase Contract Agent had itself authenticated and executed such
Equity Units.

     Section 7.12 Preservation of Information; Communications to Holders.

     (a) The Purchase Contract Agent shall preserve, in as current a form as is reasonably
practicable, the names and addresses of Holders received by the Purchase Contract Agent in its
capacity as Security Registrar.

     (b) If Holders owning not less than 25% of the Outstanding Equity Units (herein referred to as
“Applicants”) apply in writing to the Purchase Contract Agent, and furnish to the Purchase Contract
Agent reasonable proof that each such Applicant has owned a Equity Units for a period of at least
six months preceding the date of such application, and such application states that the applicants
desire to communicate with other Holders with respect to their rights under this Agreement or under
the Equity Units and is accompanied by a copy of the form of proxy or other communication which
such applicants propose to transmit, then the Purchase Contract Agent shall mail to all the Holders
copies of the form of proxy or other communication which is specified in such request, with
reasonable promptness after a tender to the Purchase Contract Agent of the materials to be mailed
and of payment, or provision for the payment, of the reasonable expenses of such mailing.

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     Section 7.13 No Obligations of Purchase Contract Agent.

     Except to the extent otherwise expressly provided in this Agreement, the Purchase Contract
Agent assumes no obligations and shall not be subject to any liability under this Agreement, the
Pledge Agreement, the Remarketing Agreement or any Stock Purchase Contract in respect of the
obligations of the Holder of any Equity Units thereunder. The Company agrees, and each Holder of a
Certificate, by its acceptance thereof, shall be deemed to have agreed, that the Purchase Contract
Agent’s execution of the Certificates on behalf of the Holders shall be solely as agent and
attorney-in-fact for the Holders, and that the Purchase Contract Agent shall have no obligation to
perform such Stock Purchase Contracts on behalf of the Holders, except to the extent expressly
provided in Article V hereof. Anything contained in this Agreement to the contrary
notwithstanding, in no event shall the Purchase Contract Agent or its officers, directors,
employees or agents be liable under this Agreement, the Pledge Agreement or the Remarketing
Agreement to any third party for indirect, incidental, special, punitive, or consequential loss or
damage of any kind whatsoever, including lost profits, whether or not the likelihood of such loss
or damage was known to the Purchase Contract Agent and regardless of the form of action.

     Section 7.14 Tax Compliance.

     (a) The Purchase Contract Agent, on its own behalf and on behalf of the Company, will comply
with all applicable certification, returns, information reporting and withholding (including
“backup” withholding) requirements imposed by applicable tax laws, regulations or administrative
practice with respect to (i) any payments made with respect to the Equity Units or (ii) the
issuance, delivery, holding, transfer, redemption or exercise of rights under the Equity Units.
Such compliance shall include, without limitation, the preparation and timely filing of required
returns and the timely payment of all amounts required to be withheld to the appropriate taxing
authority or its designated agent.

     (b) The Purchase Contract Agent shall comply in accordance with the terms hereof with any
written direction received from the Company with respect to the execution or certification of any
required documentation and the application of such requirements to particular payments or Holders
or in other particular circumstances, and may for purposes of this Agreement conclusively rely on
any such direction in accordance with the provisions of Section 7.01(a).

     (c) Without limiting the above, if required by law, any payment (including cash or property)
and any deemed payment made under the terms of this Agreement shall be subject to withholding and
backup withholding.

     (d) Without limiting the above, any payment of Contract Adjustment Payments and distribution
of property in satisfaction of deferred Contract Adjustment Payments made to a non-United States
person (as defined under the Code) shall be subject to withholding tax unless such person
establishes an exemption from such withholding tax.

     (e) Any withholding and backup withholding of tax under this Section 7.14 shall be treated as
if made to the intended recipient in full compliance with the terms of this Agreement.

     (f) The Purchase Contract Agent shall maintain all appropriate records documenting compliance
with such requirements, and shall make such records available, on written request, to the Company
or its authorized representative within a reasonable period of time after receipt of such request.

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ARTICLE VIII

SUPPLEMENTAL AGREEMENTS

     Section 8.01 Supplemental Agreements without Consent of Holders.

     Without the consent of any Holders, the Company, when authorized by a Board Resolution, and
the Purchase Contract Agent, at any time and from time to time, may enter into one or more
agreements supplemental hereto, in form satisfactory to the Company and the Purchase Contract
Agent, to:

     (a) evidence the succession of another Person to the Company, and the assumption by any such
successor of the covenants of the Company herein and in the Certificates;

     (b) add to the covenants of the Company for the benefit of the Holders, or surrender any right
or power herein conferred upon the Company;

     (c) evidence and provide for the acceptance of appointment hereunder by a successor Purchase
Contract Agent;

     (d) make provision with respect to the rights of Holders pursuant to the requirements of
Section 5.04(b);

     (e) cure any ambiguity (or formal defect) or correct or supplement any provisions herein that
may be inconsistent with any other provisions herein; or

     (f) make any other provisions with respect to such matters or questions arising under this
Agreement, provided that such action shall not adversely affect the interests of the Holders in any
material respect.

     Section 8.02 Supplemental Agreements with Consent of Holders.

     With the consent of the Holders of not less than a majority in Stated Amount of the
Outstanding Equity Units voting together as one class, including without limitation the consent of
the Holders obtained in connection with a tender or an exchange offer, by Act of said Holders
delivered to the Company and the Purchase Contract Agent, the Company, when duly authorized, and
the Purchase Contract Agent may enter into an agreement or agreements supplemental hereto for the
purpose of modifying in any manner the terms of the Stock Purchase Contracts, or the provisions of
this Agreement or the rights of the Holders in respect of the Equity Units; provided, however,
that, except as contemplated herein, no such supplemental agreement shall, without the consent of
each Holder of Outstanding Equity Units affected thereby,

     (a) subject to the Company’s right to defer any Contract Adjustment Payments pursuant to
Section 5.11, change any Payment Date;

     (b) change the amount or the type of Collateral required to be Pledged to secure a Holder’s
obligations under the Stock Purchase Contract, or otherwise materially adversely affect the
Holder’s rights in or to such Collateral or materially adversely alter such Holder’s rights in or
to such Collateral;

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     (c) change any place where, or the coin or currency in which, any Contract Adjustment Payment
is payable or reduce any Contract Adjustment Payments;

     (d) impair the right to institute suit for the enforcement of any Stock Purchase Contract or
any Contract Adjustment Payments;

     (e) reduce the number of shares of Common Stock or the amount of any other property or
securities to be purchased pursuant to any Stock Purchase Contract, increase the price to purchase
shares of Common Stock or any other property or securities upon settlement of any Stock Purchase
Contract or change the Stock Purchase Date or the right to Early Settlement or Cash Merger Early
Settlement or otherwise materially and adversely affect the Holder’s rights under the Stock
Purchase Contract; or

     (f) reduce the percentage of the Outstanding Equity Units the consent of whose Holders is
required for any modification or amendment to the provisions of this Agreement, the Stock Purchase
Contracts or the Pledge Agreement;

provided that if any amendment or proposal referred to above would adversely affect only the
Corporate Units or the Treasury Units, then only the affected class of Holders as of the record
date for the Holders entitled to vote thereon will be entitled to vote on such amendment or
proposal, and such amendment or proposal shall not be effective except with the consent of Holders
of not less than a majority of the affected class or all of the Holders of the affected class, as
applicable.

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

     Section 8.03 Execution of Supplemental Agreements.

     In executing, or accepting the additional agencies created by, any supplemental agreement
permitted by this Article VIII or the modifications thereby of the agencies created by this
Agreement, the Purchase Contract Agent shall be provided, in addition to the documents required by
Section 1.02, and (subject to Section 7.01) shall be fully authorized and protected in relying
upon, an Officers’ Certificate each stating that the execution of such supplemental agreement is
authorized or permitted by this Agreement and that any and all conditions precedent to the
execution and delivery of such supplemental agreement have been satisfied. The Purchase Contract
Agent may, but shall not be obligated to, enter into any such supplemental agreement which affects
the Purchase Contract Agent’s own rights, duties or immunities under this Agreement or otherwise.
The Purchase Contract Agent shall enter into all other supplemental agreements at the request of
the Company.

     Section 8.04 Effect of Supplemental Agreements.

     Upon the execution of any supplemental agreement under this Article VIII, this Agreement shall
be modified in accordance therewith, and such supplemental agreement shall form a part of this
Agreement for all purposes; and every Holder of Certificates theretofore or thereafter
authenticated, executed on behalf of the Holders and delivered hereunder, shall be bound thereby.

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     Section 8.05 Reference to Supplemental Agreements.

     Certificates authenticated, executed on behalf of the Holders and delivered after the
execution of any supplemental agreement pursuant to this Article VIII may, and shall if required by
the Company, bear a notation in form approved by the Company as to any matter provided for in such
supplemental agreement. If the Company shall so determine, new Certificates so modified as to
conform, in the opinion of the Company, to any such supplemental agreement may be prepared and
executed by the Company and authenticated, executed on behalf of the Holders and delivered by the
Purchase Contract Agent in exchange for outstanding Certificates.

ARTICLE IX

CONSOLIDATION, MERGER, CONVEYANCE, TRANSFER OR LEASE

     Section 9.01 Covenant Not to Consolidate, Merge, Convey, Transfer or Lease Property Except
under Certain Conditions.

     The Company covenants that it will not consolidate with or merge with and into any other
Person or convey, transfer or lease all or substantially all of its properties and assets to
another Person, unless:

     (a) either the Company shall be the continuing corporation, or the successor (if other than
the Company) or transferee shall be a Person organized and existing under the laws of the United
States of America or a State thereof or the District of Columbia and such Person shall expressly
assume all the obligations of the Company under the Stock Purchase Contracts, this Agreement, the
Pledge Agreement, the Indenture, the Debentures and the Remarketing Agreement by one or more
supplemental agreements in form reasonably satisfactory to the Purchase Contract Agent and the
Collateral Agent, executed and delivered to the Purchase Contract Agent and the Collateral Agent by
such Person; and

     (b) the Company or such successor corporation or transferee, as the case may be, shall not,
immediately after such consolidation, conversion, merger, sale, assignment, transfer, lease or
conveyance, be in default of payment obligations under the Stock Purchase Contracts, this
Agreement, the Pledge Agreement, the Indenture, the Debentures or the Remarketing Agreement or in
material default in the performance of any other covenants under any of the foregoing agreements.

     Section 9.02 Rights and Duties of Successor Person.

     In case of any such merger, consolidation, sale, assignment, transfer, lease or conveyance and
upon any such assumption by a successor Person in accordance with Section 9.01, such successor
Person shall succeed to and be substituted for the Company with the same effect as if it had been
named herein as the Company. Such successor Person thereupon may cause to be signed, and may issue
either in its own name or in the name of the Company, any or all of the Certificates evidencing
Equity Units issuable hereunder which theretofore shall not have been signed by the Company and
delivered to the Purchase Contract Agent; and, upon the order of such successor Person, instead of
the Company, and subject to all the terms, conditions and limitations in this Agreement prescribed,
the Purchase Contract Agent shall authenticate and execute on behalf of the Holders and deliver any
Certificates which previously shall have been signed and delivered by the officers of the Company
to the Purchase Contract Agent for authentication and execution, and any Certificate evidencing Equity Units which such successor
Person thereafter shall cause to be signed and delivered to the Purchase Contract Agent for that
purpose.

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     In case of any such merger, consolidation, sale, assignment, transfer, lease or conveyance,
such change in phraseology and form (but not in substance) may be made in the Certificates
evidencing Equity Units thereafter to be issued as may be appropriate.

     Section 9.03 Officers’ Certificate Given to Purchase Contract Agent.

     The Purchase Contract Agent, subject to Section 7.01 and Section 7.03, shall receive an
Officers’ Certificate as conclusive evidence that any such merger, consolidation, sale, assignment,
transfer, lease or conveyance, and any such assumption, complies with the provisions of this
Article IX and that all conditions precedent to the consummation of any such merger, consolidation,
sale, assignment, transfer, lease or conveyance have been met.

ARTICLE X

COVENANTS

     Section 10.01 Performance under Stock Purchase Contracts.

     The Company covenants and agrees for the benefit of the Holders from time to time of the
Equity Units that it will duly and punctually perform its obligations under the Stock Purchase
Contracts in accordance with the terms of the Stock Purchase Contracts and this Agreement.

     Section 10.02 Maintenance of Office or Agency.

     The Company will maintain in the Borough of Manhattan, New York City an office or agency where
Certificates may be presented or surrendered for acquisition of shares of Common Stock upon
settlement of the Stock Purchase Contracts where Certificates may be surrendered for registration
of transfer or exchange, for a Collateral Substitution or recreation of Corporate Units and where
notices and demands to or upon the Company in respect of the Equity Units and this Agreement may be
served. The Company will give prompt written notice to the Purchase Contract Agent of the location,
and any change in the location, of such office or agency. The Company initially designates the
Corporate Trust Office of the Purchase Contract Agent as such office of the Company. If at any
time the Company shall fail to maintain any such required office or agency or shall fail to furnish
the Purchase Contract Agent with the address thereof, such presentations, surrenders, notices and
demands may be made or served at the Corporate Trust Office, and the Company hereby appoints the
Purchase Contract Agent as its agent to receive all such presentations, surrenders, notices and
demands.

     The Company may also from time to time designate one or more other offices or agencies where
Certificates may be presented or surrendered for any or all purposes and may from time to time
rescind such designations; provided, however, that no such designation or rescission shall in any
manner relieve the Company of its obligation to maintain an office or agency in the Borough of
Manhattan, New York City for such purposes. The Company will give prompt written notice to the
Purchase Contract Agent of any such designation or rescission and of any change in the location of
any such other office or agency. The Company hereby designates as the place of payment for the Equity Units the Corporate Trust
Office and appoints the Purchase Contract Agent at its Corporate Trust Office as paying agent.

Purchase Contract Agreement

67

 

     Section 10.03 Company to Reserve Common Stock.

     The Company shall at all times prior to the third Stock Purchase Date reserve and keep
available, free from preemptive rights, out of its authorized but unissued Common Stock the full
number of shares of Common Stock then issuable against tender of payment in respect of all Stock
Purchase Contracts constituting a part of the Equity Units evidenced by outstanding Certificates.

     Section 10.04 Covenants as to Common Stock.

     The Company covenants that all shares of Common Stock that may be issued against tender of
payment in respect of any Stock Purchase Contract constituting a part of the Outstanding Equity
Units will, upon issuance, be duly authorized, validly issued, fully paid and nonassessable.

     Section 10.05 Statements of Officers of the Company as to Default.

     The Company will deliver to the Purchase Contract Agent, within 120 days after the end of each
fiscal year of the Company ending after the date hereof, an Officers’ Certificate, stating whether
or not to the knowledge of the signers thereof the Company is in default in the performance and
observance of any of the terms, provisions and conditions hereof, and if the Company shall be in
default, specifying all such defaults and the nature and status thereof of which the Company have
knowledge.

     Section 10.06 ERISA.

     Each Holder from time to time of the Equity Units that is a Plan or who used assets of a Plan
to purchase Equity Units hereby represents that either (i) no portion of the assets used by such
Holder to acquire the Corporate Units constitutes assets of the Plan or (ii) the purchase or
holding of the Corporate Units by such purchaser or transferee will not constitute a non-exempt
prohibited transaction under Section 406 of ERISA or Section 4975 of the Code or similar violation
under any applicable laws.

     Section 10.07 Tax Treatment.

     (a) The Company covenants and agrees, for United States federal, state and local income and
franchise tax purposes, to (i) treat a Holder’s acquisition of the Corporate Units as the
acquisition of an interest in the applicable Debentures and Stock Purchase Contract constituting
the Corporate Units and (ii) treat each Holder as the owner of the applicable interest in the
Collateral Account, including the applicable Debentures, interest in the Treasury Portfolio or the
applicable Qualifying Treasury Securities.

     (b) Each Holder of an Equity Unit shall be deemed to have agreed (unless the United States
Internal Revenue Service requires a different treatment from such Holder), by acceptance of an
Equity Unit, to treat for all United States federal income tax purposes (i) itself as the owner of
the Stock Purchase Contract and the related ownership interests in the applicable Debentures or
applicable Qualifying Treasury Securities, as applicable, pledged under the Pledge Agreement, and
(ii) the Debentures as indebtedness of the Company. In addition, each initial purchaser of a
Corporate Unit for $75 shall be deemed to have agreed, for United States federal income tax purposes, to allocate $25 to each
of the undivided beneficial ownership interests in each Debenture of each series included in each
Corporate Unit and $0 to the Stock Purchase Contract.

SIGNATURES ON THE FOLLOWING PAGE

Purchase Contract Agreement

68

 

     In Witness Whereof, the parties hereto have caused this Agreement to be duly executed
as of the day and year first above written.

	 	 	 	 	 	 	 
	 	 	American International Group, Inc.	 	 
	 
	 	 	 	 	 	 
	 

	 	By	 	/s/  Robert A. Gender	 	 
	 

	 	 	 	 

Name:  Robert A. Gender
	 	 
	 

	 	 	 	Title:  Vice President and Treasurer	 	 

	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	The Bank of New York,	 	 
	 	 	as Purchase Contract Agent	 	 
	 
	 	 	 	 	 	 
	 

	 	By	 	/s/   Sherma Thomas	 	 
	 

	 	 	 	 

Name:  Sherma Thomas
	 	 
	 

	 	 	 	Title:  Assistant Treasurer	 	 

Purchase Contract Agreement

 

 

EXHIBIT A

FORM OF FACE OF CORPORATE UNIT CERTIFICATE)

     [For inclusion in Global Certificates only — THIS CERTIFICATE IS A GLOBAL CERTIFICATE WITHIN
THE MEANING OF THE PURCHASE CONTRACT AGREEMENT HEREINAFTER REFERRED TO AND IS REGISTERED IN THE
NAME OF CEDE & CO., AS NOMINEE OF THE DEPOSITORY TRUST COMPANY, A NEW YORK CORPORATION (THE
“DEPOSITARY”), THE DEPOSITARY OR ANOTHER NOMINEE OF THE DEPOSITARY. THIS CERTIFICATE IS
EXCHANGEABLE FOR CERTIFICATES REGISTERED IN THE NAME OF A PERSON OTHER THAN THE DEPOSITARY OR ITS
NOMINEE ONLY IN THE LIMITED CIRCUMSTANCES DESCRIBED IN THE PURCHASE CONTRACT AGREEMENT AND NO
TRANSFER OF THIS CERTIFICATE (OTHER THAN A TRANSFER OF THIS CERTIFICATE AS A WHOLE BY THE
DEPOSITARY TO A NOMINEE OF THE DEPOSITARY OR BY A NOMINEE OF THE DEPOSITARY TO THE DEPOSITARY OR
ANOTHER NOMINEE OF THE DEPOSITARY) MAY BE REGISTERED EXCEPT IN LIMITED CIRCUMSTANCES.

UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITARY FOR
REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY CERTIFICATE ISSUED IS REGISTERED IN THE NAME
OF CEDE & CO. OR SUCH OTHER NAME AS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITARY
(AND ANY PAYMENT HEREON IS MADE TO CEDE & CO. OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN
AUTHORIZED REPRESENTATIVE OF THE DEPOSITARY), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR
OTHERWISE BY OR TO ANY PERSON IS WRONGFUL SINCE THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN
INTEREST HEREIN.]

	 	 	 
	No.	 	Number of Corporate Units:
	CUSIP No. 026874 115
	 	 
	ISIN: US0268741156
	 	 

AMERICAN INTERNATIONAL GROUP, INC.

CORPORATE UNITS

     This Corporate Unit Certificate certifies that            is the registered
Holder of the number of Corporate Units set forth above [For inclusion in Global Certificates only
— or such other number of Corporate Units reflected in the Schedule of Increases or Decreases in
Global Certificate attached hereto]. The “Stated Amount” of each Corporate Unit evidenced hereby
shall (i) from and including May 16, 2008 to but excluding the First Stock Purchase Date, be
$75.00, (ii) from and including the First Stock Purchase Date to but excluding the Second Stock
Purchase Date, be $50.00 and (iii) from and including the Second Stock Purchase Date to but
excluding the Third Stock Purchase Date, be $25.00. Each Corporate Unit consists of (a) (i) at all
times prior to the First Stock Purchase Date or, if earlier, the First Remarketing Settlement Date,
a 2.5% undivided beneficial ownership interest in a Series B-1 Debenture with a Principal Amount of
$1,000, (ii) at all times prior to the Second Stock Purchase Date or, if earlier, the Second
Remarketing Settlement Date, a 2.5% undivided beneficial ownership interest in a Series B-2
Debenture with a Principal Amount of $1,000, (iii) at all times prior to the Third Stock Purchase
Date or, if earlier, the Third Remarketing Settlement Date, a 2.5% undivided beneficial ownership
interest in a Series B-3 Debenture with a Principal Amount of $1,000, and (iv) after the

Form of Corporate Unit

 

 

Remarketing Settlement Date for any Series of Debentures and prior to the applicable Stock
Purchase Date, an undivided beneficial ownership interest in the Treasury Portfolio purchased with
the net proceeds of the Remarketing, in each case subject to the Pledge thereof, and (b) the rights
an obligations of the Holder under one Stock Purchase Contract with American International Group,
Inc., a Delaware corporation (the “Company”, which term includes any successor person under the
Purchase Contract Agreement hereinafter referred to). This Corporate Unit Certificate is issued
pursuant to, and benefits from, all of the provisions of the Purchase Contract Agreement (as
defined on the reverse hereof) and each capitalized term used herein that is defined in the
Purchase Contract Agreement has the meaning set forth therein. Pursuant to the Pledge Agreement,
the interests described in clause (a) above constituting part of each Corporate Unit evidenced
hereby have been pledged to the Collateral Agent, for the benefit of the Company, to secure the
obligations of the Holder under the Stock Purchase Contract comprising part of such Corporate Unit.

     Interest payments on the Debentures forming part of the Corporate Units evidenced hereby,
which are payable quarterly in arrears on February 1, May 1, August 1, and November 1 of each year,
commencing August 1, 2008 (each, an “Interest Payment Date”), shall, subject to deferral as
provided in the Supplemental Indentures, and to receipt thereof by the Purchase Contract Agent from
the Paying Agent or the Securities Intermediary, be paid to the Person in whose name this Corporate
Unit Certificate (or a Predecessor Corporate Unit Certificate) is registered at the close of
business on the Record Date for such Payment Date.

     Each Stock Purchase Contract evidenced hereby obligates the Holder of this Corporate Unit
Certificate to purchase, and the Company to sell, on each of three Stock Purchase Dates, at a price
equal to $25.00 (the “Purchase Price”), a number of newly issued or treasury shares of common
stock, par value $2.50 per share (“Common Stock”), of the Company, per Corporate Unit equal to the
applicable Settlement Rate, unless on or prior to the applicable Stock Purchase Date there shall
have occurred an Early Settlement or Cash Merger Early Settlement with respect to such Stock
Purchase Contract or a Termination Event, all as provided in the Purchase Contract Agreement and
more fully described on the reverse hereof. The Purchase Price for the shares of Common Stock
purchased pursuant to each Stock Purchase Contract evidenced hereby, if not paid earlier, shall be
paid on the applicable Stock Purchase Date (i) by application of payment received in respect of the
Pledged Treasury Portfolio purchased with respect to any Pledged Debentures of the applicable
series sold in the applicable Remarketing (or in respect of the Principal Amount of such Pledged
Debentures in the event of a Failed Remarketing with respect thereto), which Pledged Treasury
Portfolio and Pledged Debentures, as the case may be, are pledged to secure the obligations under
such Stock Purchase Contract of the Holder of each Corporate Unit of which such Stock Purchase
Contract is a part, or (ii) in immediately available funds in the event the Holder elects a
Settlement with Cash or a Cash Merger Early Settlement.

     The holder of the Corporate Units evidenced hereby is deemed to have agreed (unless the United
States Internal Revenue Service requires a different treatment from such Holder), by acceptance of
such Corporate Units, to treat for all United States federal income tax purposes (i) itself as the
owner of the Stock Purchase Contracts and the related ownership interest in the Debentures pledged
under the Pledge Agreement, and (ii) the Debentures as indebtedness of the Company. In addition,
each initial purchase of a Corporate Unit for $75 shall be deemed to have agreed, for United States
federal income tax purposes, to allocate $25 to each of the undivided beneficial ownership
interests in each Debenture of each series included in each Corporate Unit and $0 to the Stock
Purchase Contract.

     The Company shall pay, on each Payment Date, in respect of each Stock Purchase Contract
forming part of a Corporate Unit evidenced hereby, an amount (the “Contract Adjustment Payments”)
equal to (i) from and including May 16, 2008 to but excluding the First Stock Purchase Date,

Form of Corporate Unit

A-2

 

at the annual rate of 2.7067% on the initial Stated Amount of $75 per Stock Purchase Contract,
(ii) from and including the First Stock Purchase Date to but excluding the Second Stock Purchase
Date, at the annual rate of 2.6450% on the adjusted Stated Amount of $50 per Stock Purchase
Contract, and (iii) from and including the Second Stock Purchase Date to but excluding the Third
Stock Purchase Date, at the annual rate of 2.61% on the adjusted Stated Amount of $25 per Stock
Purchase Contract, subject to its rights provided for in the Purchase Contract Agreement to defer
Contract Adjustment Payments. Such Contract Adjustment Payments shall be payable to the Person in
whose name this Corporate Unit Certificate (or a Predecessor Corporate Unit Certificate) is
registered at the close of business on the Record Date for such Payment Date.

     Contract Adjustment Payments and distributions due on any Payment Date that is not a Business
Day shall be made on the next succeeding day that is a Business Day (and without any interest in
respect of such delay). Payments of Interest on the Debentures and the Contract Adjustment Payments
(net of any withholding tax to be withheld by the Company on such payments, which shall be remitted
to the appropriate taxing jurisdiction) will be payable, at the option of the Company, at the
office of the Purchase Contract Agent in New York City or by check mailed to the address of the
Person entitled thereto at such Person’s address as it appears on the Security Register, or by wire
transfer to the account designated by such Person by a prior written notice to the Purchase
Contract Agent.

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

     Unless the certificate of authentication hereon has been executed by the Purchase Contract
Agent by manual signature, this Corporate Unit Certificate shall not be entitled to any benefit
under the Pledge Agreement or the Purchase Contract Agreement or be valid or obligatory for any
purpose.

Form of Corporate Unit

A-3

 

     IN WITNESS WHEREOF, the Company and the Holder specified above have caused this instrument to
be duly executed.

	 	 	 	 	 	 
	 	American International Group, Inc.

 	 
	 	By  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	Holder Specified Above (as to

obligations of such Holder under the Stock

Purchase Contracts and the Pledge Agreement)	 
	 	By  	                              The Bank of New York,
 	 
	 	 	as attorney-in-fact of such Holder 	 
	 	 	 	 
	 
	 	 	By  	
 	 
	 	 	 	Name:  	 	 
	 	 	 	Title:  	 	 
	 

Date:

Form of Corporate Unit

A-4

 

CERTIFICATE OF AUTHENTICATION

OF PURCHASE CONTRACT AGENT

     This is one of the Corporate Unit Certificates referred to in the within mentioned Purchase
Contract Agreement.

	 	 	 	 	 
	 	The Bank of New York,

as Purchase Contract Agent

 	 
	 	By  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

Form of Corporate Unit

A-5

 

(FORM OF REVERSE OF Corporate Unit CERTIFICATE)

     Each Stock Purchase Contract evidenced hereby is issued pursuant to and governed by all of the
provisions of a Purchase Contract Agreement, dated as of May 16, 2008 (as may be supplemented from
time to time, the “Purchase Contract Agreement”), between the Company and The Bank of New York, as
Purchase Contract Agent (including its successors hereunder, the “Purchase Contract Agent”), to
which Purchase Contract Agreement and supplemental agreements thereto reference is hereby made for
a description of the respective rights, limitations of rights, obligations, duties and immunities
thereunder of the Purchase Contract Agent, the Company, and the Holders and of the terms upon which
the Corporate Unit Certificates are, and are to be, executed and delivered.

     Each Stock Purchase Contract evidenced hereby obligates the Holder of this Corporate Unit
Certificate to purchase, and the Company to sell, on each of three Stock Purchases Dates at a price
equal to $25.00 (the “Purchase Price”), a number of newly issued or treasury shares of Common Stock
per Corporate Unit equal to the applicable Settlement Rate, unless an Early Settlement or a Cash
Merger Early Settlement with respect to the Corporate Unit of which such Stock Purchase Contract is
a part or a Termination Event shall have occurred. The Settlement Rate may be adjusted as provided
in the Purchase Contract Agreement. The Stock Purchase Dates are February 15, 2011, May 1, 2011
and August 1, 2011, or if any such date is not a Business Day, the next Business Day. No
fractional shares of Common Stock will be issued upon settlement of Stock Purchase Contracts.

     Each Stock Purchase Contract evidenced hereby, which is settled through Early Settlement or
Cash Merger Early Settlement, shall obligate the Holder of the related Corporate Unit to purchase
at the Early Settlement Amount or the purchase price specified in Section 5.04(b)(ii) of the Stock
Purchase Contract Agreement, respectively, and the Company to sell, a number of newly issued or
treasury shares of Common Stock equal to the Early Settlement Rate (in the case of an Early
Settlement) or the consideration specified in Section 5.04(b)(ii) (in the case of a Cash Merger
Early Settlement).

     In accordance with the terms of the Purchase Contract Agreement, the Holder of this Corporate
Unit Certificate shall pay the Purchase Price for the shares of Common Stock purchased pursuant to
each Stock Purchase Contract evidenced hereby by effecting a Settlement with Cash, an Early
Settlement or, if applicable, a Cash Merger Early Settlement or from the proceeds of a Remarketing
of the related Pledged Debentures. If a Holder of Corporate Units does not, on or prior to 5:00
p.m. (New York City time) on the second Business Day immediately preceding the applicable Stock
Purchase Date, notify the Purchase Contract Agent of its intention to effect a Settlement with
Cash, or does so notify the Purchase Contract Agent but fails to make an effective Settlement with
Cash on or prior to 5:00 p.m. (New York City time) on the Business Day immediately preceding the
applicable Stock Purchase Date, such notice of Settlement with Cash shall automatically be deemed
withdrawn and without effect.

     Upon the occurrence of a Failed Remarketing with respect to the Debentures of any series that
constitute part of Corporate Units, the Collateral Agent, for the benefit of the Company, will
exercise its rights as a secured party with respect to the Pledged Debentures of such series
underlying the Corporate Units, and may, to the extent permitted by law, among other things, (A)
deliver such Debentures to the Company in full satisfaction of the Holders’ obligations under the
Stock Purchase Contracts on the applicable Stock Purchase Date (but not any Additional Debentures
issued to pay Deferred Interest or accrued interest on such Debentures) or (B) sell such Debentures
in one or more public or private sales or otherwise and apply the proceeds from the sale of such
Debentures to satisfy in full the Holders’ obligations under the Stock Purchase Contracts and remit
the excess, if any, of the

Form of Corporate Unit

A-6

 

proceeds over the Purchase Price payable on such Stock Purchase Date to the Purchase Contract
Agent for payment to the Holders of the Corporate Units to which such Debentures relate.

     The Company shall not be obligated to issue any shares of Common Stock in respect of a Stock
Purchase Contract on any Stock Purchase Date, Early Settlement Date or Cash Merger Early Settlement
Date or deliver any certificates therefor to the Holder unless it shall have received the payment
required under, and in the manner set forth in, the Purchase Contract Agreement.

     Under the terms of the Pledge Agreement and the Purchase Contract Agreement, the Purchase
Contract Agent will be entitled to exercise the voting and any other consensual rights pertaining
to the Pledged Debentures or any part thereof for any purpose not inconsistent with terms of the
Pledge Agreement and Purchase Contract Agreement. The Purchase Contract Agent shall not exercise or
shall not refrain from exercising such right, as the case may be, if, in the judgment of the
Company, such action would impair or otherwise have a material adverse effect on the value of all
or any of the Pledged Debentures. The Purchase Contract Agent shall give the Company and the
Collateral Agent at least five Business Days’ prior written notice of the manner in which it
intends to exercise, or its reasons for refraining from exercising, any such right. The Holders of
Corporate Units shall have no voting or other rights in respect of Common Stock.

     In the event of a Successful Remarketing of a series of Debentures, the Collateral Agent
shall, in accordance with the Pledge Agreement, instruct the Securities Intermediary to transfer
the Pledged Debentures of such series to the Remarketing Agent, upon confirmation of deposit by the
Remarketing Agent of the Proceeds of such Successful Remarketing (less, to the extent permitted by
the Remarketing Agreement, the Remarketing Agent’s Fee) in the Collateral Account and the
Collateral Agent shall thereupon instruct the Securities Intermediary to purchase the Treasury
Portfolio with the Proceeds of the Successful Remarketing. A Holder of Corporate Units shall be
deemed to have elected to pay for the shares of Common Stock to be issued under the Stock Purchase
Contract underlying the Corporate Units from the Proceeds of the related Treasury Portfolio after a
Successful Remarketing. Without receiving any instruction from any Holder, the Collateral Agent
shall instruct the Securities Intermediary to remit the Proceeds of the related Treasury Portfolio
equal to the Purchase Price of the shares of Common Stock to be delivered on the applicable Stock
Purchase Date to the Company to satisfy in full such Holder’s obligations to pay the Purchase Price
to purchase shares of Common Stock under the related Stock Purchase Contracts on such Stock
Purchase Date and to remit the balance of the Proceeds from the related Treasury Portfolio, if any,
to the Purchase Contract Agent for distribution to such Holder.

     The Corporate Units are issuable only in registered form and only in Stated Amounts of a
single Corporate Unit and any integral multiple thereof. The transfer of any Corporate Unit
Certificate will be registered and Corporate Unit Certificates may be exchanged as provided in the
Purchase Contract Agreement. The Security Registrar may require a Holder, among other things, to
furnish appropriate endorsements and transfer documents permitted by the Purchase Contract
Agreement. No service charge shall be required for any such registration of transfer or exchange,
but the Company and the Purchase Contract Agent may require payment of a sum sufficient to cover
any tax or other governmental charge payable in connection therewith. A Holder who elects to
substitute interests in the applicable Qualifying Treasury Securities for interests in the
applicable Debentures, thereby creating Treasury Units, shall be responsible for any fees or
expenses payable in connection therewith. Except as provided in the Purchase Contract Agreement,
for so long as the Stock Purchase Contract underlying a Corporate Unit remains in effect, such
Corporate Unit shall not be separable into its constituent parts, and the rights and obligations of
the Holder of such Corporate Unit in respect of the Debentures and the Stock Purchase Contract
constituting such Corporate Unit may be transferred and exchanged only as an Corporate Units.

Form of Corporate Unit

A-7

 

     Subject to the conditions set forth in the Purchase Contract Agreement, a Holder may, at any
time other than during a Blackout Period, create Treasury Units by delivering to the Securities
Intermediary for each 40 Treasury Units to be created (1) prior to the First Stock Purchase Date, a
First Qualifying Treasury Security, (2) prior to the Second Stock Purchase Date, a Second
Qualifying Treasury Security, and (3) prior to the Third Stock Purchase Date, a Third Qualifying
Treasury Security, in exchange for the release of the applicable Pledged Debentures in accordance
with the terms of the Purchase Contract Agreement and the Pledge Agreement; provided that such
creation of Treasury Units may be effected only in multiples of 40 Treasury Units.

     The Company shall have the right, at any time prior to August 1, 2011, to defer the payment of
any or all of the Contract Adjustment Payments otherwise payable on any Payment Date. Any Contract
Adjustment Payments so deferred shall, to the extent permitted by law, accrue additional Contract
Adjustment Payments thereon at the rate of 5.67% per year (computed on the basis of a 360-day year
of twelve 30-day months), compounding on each succeeding Payment Date, until paid in full (such
deferred installments of Contract Adjustment Payments, if any, together with the additional
Contract Adjustment Payments, if any, accrued thereon, being referred to herein as the “Deferred
Contract Adjustment Payments”). Deferred Contract Adjustment Payments, if any, shall be due on the
next succeeding Payment Date except to the extent that payment is deferred pursuant to the Purchase
Contract Agreement. No Contract Adjustment Payments may be deferred to a date that is after August
1, 2011 and no such deferral period may end other than on a Payment Date. If the Company elects to
defer the payment of Contract Adjustment Payments after August 1, 2011, each Holder will receive,
in lieu of a cash payment, in the sole discretion of the Company, either the number of shares of
Common Stock or the Additional Debentures described in the Purchase Contract Agreement.

     The Stock Purchase Contracts and all obligations and rights of the Company and the Holders
thereunder, including, without limitation, the rights of the Holders to receive and the obligation
of the Company to pay any Contract Adjustment Payments, including Deferred Contract Adjustment
Payments, shall immediately and automatically terminate, without the necessity of any notice or
action by any Holder, the Purchase Contract Agent or the Company, if, on or prior to the Third
Stock Purchase Date, a Termination Event shall have occurred. Upon and after the occurrence of a
Termination Event, the Collateral Agent shall release the Pledged Debentures from the Pledge in
accordance with the provisions of the Pledge Agreement. A Corporate Unit shall thereafter
represent the right to receive the interests in the Debentures forming a part of such Corporate
Unit (or if any series of Debentures has been sold in a Successful Remarketing and the applicable
Stock Purchase Date has not yet occurred, an interest in the Treasury Portfolio purchased with the
proceeds of such Debentures) in accordance with the terms of, and except as set forth in, the
Purchase Contract Agreement and the Pledge Agreement.

     Upon registration of transfer of this Corporate Unit Certificate, the transferee shall be
bound (without the necessity of any other action on the part of such transferee, except as may be
required by the Purchase Contract Agent pursuant to the Purchase Contract Agreement) by all the
terms and provisions of, and all the duties, responsibilities and obligations under, the Purchase
Contract Agreement and the Stock Purchase Contracts evidenced hereby, and the transferor shall be
released from the obligations under the Stock Purchase Contracts evidenced by this Corporate Unit
Certificate. The Company covenants and agrees, and the Holder, by its acceptance hereof, likewise
covenants and agrees, to be bound by the provisions of this paragraph.

     The Holder of this Corporate Unit Certificate, by its acceptance hereof, irrevocably
authorizes the Purchase Contract Agent to enter into and perform the related Stock Purchase
Contracts forming part of the Corporate Units evidenced hereby on its behalf as its
attorney-in-fact, expressly withholds any consent to the assumption (i.e., affirmance) of the Stock
Purchase Contracts by the

Form of Corporate Unit

A-8

 

Company or its trustee in the event that the Company becomes the subject of a case under the
Bankruptcy Code, agrees to be bound by the terms and provisions thereof, covenants and agrees to
perform its obligations under such Stock Purchase Contracts, consents to the provisions of the
Purchase Contract Agreement, irrevocably authorizes the Purchase Contract Agent to enter into and
perform the Purchase Contract Agreement and the Pledge Agreement on its behalf as its
attorney-in-fact, and consents to, and agrees to be bound by, the Pledge of such Holder’s right,
title and interest in and to the Collateral Account, including the Debentures underlying this
Corporate Unit Certificate pursuant to the Pledge Agreement. The Holder further covenants and
agrees that, to the extent and in the manner provided in the Purchase Contract Agreement and the
Pledge Agreement, but subject to the terms thereof, on each Stock Purchase Date payments with
respect to an aggregate principal amount of the Pledged Debentures upon a Successful Remarketing of
the applicable series on such Stock Purchase Date shall be paid by the Collateral Agent to the
Company in satisfaction of such Holder’s obligations under such Stock Purchase Contract on such
Stock Purchase Date and such Holder shall acquire no right, title or interest in such payments.

     Subject to certain exceptions, the provisions of the Purchase Contract Agreement may be
amended with the consent of the Holders of a majority in Stated Amount of the Outstanding Equity
Units. The Stock Purchase Contracts and Equity Units shall for all purposes be governed by, and
construed in accordance with, the laws of the State of New York.

     Prior to due presentment of this Certificate for registration of transfer, the Company, the
Purchase Contract Agent and its Affiliates and any agent of the Company or the Purchase Contract
Agent may treat the Person in whose name this Corporate Unit Certificate is registered as the owner
of the Corporate Units evidenced hereby for the purpose of receiving distributions payable on the
Debentures, receiving Contract Adjustment Payments (subject to any applicable Record Date),
performance of the Stock Purchase Contracts and for all other purposes whatsoever, whether or not
any payments in respect thereof be overdue and notwithstanding any notice to the contrary, and
neither the Company, the Purchase Contract Agent nor any such Affiliate or agent shall be affected
by notice to the contrary.

     A Stock Purchase Contract shall not entitle the Holder of a Corporate Unit to any of the
rights of a holder of shares of Common Stock, prior to the delivery of shares of Common Stock under
each Stock Purchase Contract, including, without limitation, the right to vote or receive any
dividends or other payments or to consent or to receive notice as a stockholder in respect of the
meetings of stockholders or for the election of directors of the Company or for any other matter,
or any other rights whatsoever as a stockholder of the Company. A Holder will become a holder of
record of shares of Common Stock delivered pursuant to a Stock Purchase Contract at the close of
business on the date the shares of Common Stock are delivered by the Company to the Holder or, if
the Company’s stock record book is not open on that day, at the opening of business on the next
Business Day the stock record is open.

     A copy of the Purchase Contract Agreement is available for inspection at the Corporate Trust
Office.

Form of Corporate Unit

A-9

 

ABBREVIATIONS

     The following abbreviations, when used in the inscription on the face of this instrument,
shall be construed as though they were written out in full according to applicable laws or
regulations:

	 	 	 
	TEN COM:

	 	as tenants in common
	 
	 	 
	UNIF GIFT MIN ACT:

	 	                     Custodian                     
(Cust) (Minor)
	 
	 	 
	TEN ENT:

	 	as tenants by the entireties
	 
	 	 
	JT TEN:

	 	as joint tenants with right of survivorship and not as tenants in common
	 
	 	 

Under Uniform Gifts to Minors Act

(State)

Additional abbreviations may also be used though not in the above list.

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

 

 

(Please insert Social Security or Taxpayer I.D. or other Identifying Number of Assignee)

 

 

(Please print or type name and address including Postal Zip code of Assignee)

the within Corporate Unit Certificates and all rights thereunder, hereby irrevocably constituting
and appointing                      Attorney, to transfer said Corporate Unit Certificates on the books
of the Security Registrar, with full power of substitution in the premises.

	 	 	 
	Dated:

	 	Signature                                         
	 
	 	 
	 

	 	NOTICE: The signature to this assignment must correspond with
the name as it appears upon the face of the within Corporate
Unit Certificates in every particular, without alteration or
enlargement or any change whatsoever.

			
	Signature Guarantee:	 	
 

Form of Corporate Unit

A-10

 

ELECTION FOR EARLY SETTLEMENT/CASH MERGER EARLY SETTLEMENT

     The undersigned Holder of this Corporate Unit Certificate hereby irrevocably exercises the
option to effect {Early Settlement} {Cash Merger Early Settlement} in accordance with the terms of
the Purchase Contract Agreement with respect to the Stock Purchase Contracts underlying the number
of Corporate Units evidenced by this Corporate Unit Certificate specified below. The undersigned
Holder directs that a certificate for shares of Common Stock or other securities or property
deliverable upon such {Early Settlement} {Cash Merger Early Settlement} be registered in the name
of, and delivered, together with a check in payment for any fractional share and any Corporate Unit
Certificate representing any Corporate Units evidenced hereby as to which {Early Settlement} {Cash
Merger Early Settlement} of the related Stock Purchase Contracts is not effected, to the
undersigned at the address indicated below (or to the securities account designated in writing by
the Registered Holder) unless a different name and address have been indicated below. Pledged
Debentures deliverable upon such {Early Settlement} {Cash Merger Early Settlement} will be
transferred in accordance with the transfer instructions set forth below. If shares of Common Stock
or other securities or property are to be registered in the name of a Person other than the
undersigned, the undersigned will pay any transfer tax payable incident thereto.

	 	 	 	 	 
	Dated:

	 	Signature
	 	
 

	 
	 	 	 	 
	 

	 	Signature Guarantee:
	 	
 

     Number of Corporate Units evidenced hereby as to which {Early Settlement} {Cash Merger Early
Settlement} of the related Stock Purchase Contracts is being elected:

	 	 	 
	If shares of Common Stock or other securities or property are to be
registered in the name of and delivered
to and Pledged Debentures are to be
transferred to a Person other than the
Holder, please print such Person’s name
and address:

	 	REGISTERED HOLDER:
	
	 	 
	 
	 	 
	 

	 	Please print name and address of
	 

	 	Registered Holder:
	 
	 	 
	 
	 	 
	 

Name

	 	 

Name
	 
	 	 
	 

Address

	 	 

Address
	 
	 	 
	 

	 	 

	 
	 	 
	 

Social Security or other Taxpayer

	 	 

	Identification Number, if any
	 	 

     Transfer Instructions for Pledged Debentures transferable upon {Early Settlement} {Cash Merger
Early Settlement}:

Form of Corporate Unit

A-11

 

Settlement Instructions for [Third] [SECOND] [FIRST]

Stock Purchase Contract Date

	 	 	 	 	 
	No.                                         

	 	Number of Corporate Units:
	 	 

AMERICAN INTERNATIONAL GROUP, INC.

CORPORATE UNITS

     The undersigned Holder directs that a certificate (including in book-entry if requested by the
Holder) for shares of Common Stock deliverable upon settlement on or after the [Third] [Second]
[First] Stock Purchase Date of the Stock Purchase Contracts underlying the number of Corporate
Units issued pursuant to the Purchase Contract Agreement, dated as of May 16, 2008, between
American International Group, Inc. and The Bank of New York, as Purchase Contract Agent and
evidenced by the Corporate Unit Certificate bearing the certificate number indicated above be
registered in the name of, and delivered, together with a check in payment for any fractional
share, to the undersigned at the address indicated below (or to the securities account designated
in writing by the Registered Holder) unless a different name and address have been indicated below.
If shares are to be registered in the name of a Person other than the undersigned, the undersigned
will pay any transfer tax payable incident thereto.

	 	 	 	 	 
	Dated:

	 	Signature
	 	
 

	 
	 	 	 	 
	 

	 	Signature Guarantee:
	 	
 

	 
	 	 	 	 
	 
	 	 	 	 
	If shares are to be registered
in the name of and delivered to
a Person other than the Holder,
please (i) print such Person’s
name and address and (ii)
provide a guarantee of your
signature:	 	Registered Holder:

Please print name and address of Registered Holder:
	 
	 	 	 	 
	 

Name	 	 

Name
	 
	 	 	 	 
	 

Address	 	 

Address
	 
	 	 	 	 
	 
	 	 

	 
	 	 	 	 
	 

Social Security or other Taxpayer	 	 

	Identification Number, if any
	 	 	 	 

Form of Corporate Unit

A-12

 

[TO BE ATTACHED TO GLOBAL CERTIFICATES]

SCHEDULE OF INCREASES OR DECREASES IN GLOBAL CERTIFICATE

The initial number of Corporate Units represented by this Global Certificate is           . The following
increases or decreases in this Global Certificate have been made:

	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	Number of	 	 
	 	 	Amount of	 	Amount of	 	Corporate Units	 	 
	 	 	increase in	 	decrease in	 	evidenced by this	 	 
	 	 	Number of	 	Number of	 	Global	 	Signature of
	 	 	Corporate Units	 	Corporate Units	 	Certificate	 	authorized
	 	 	evidenced by the	 	evidenced by the	 	following such	 	signatory of
	 	 	Global	 	Global	 	decrease or	 	Purchase
	Date	 	Certificate	 	Certificate	 	increase	 	Contract Agent
	 
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 

Form of Corporate Unit

A-13

 

ABBREVIATIONS

     The following abbreviations, when used in the inscription on the face of this instrument,
shall be construed as though they were written out in full according to applicable laws or
regulations:

	 	 	 
	TEN COM:

	 	as tenants in common
	 
	 	 
	UNIF GIFT MIN ACT:

	 	                     Custodian                     
(Cust) (Minor)
	 
	 	 
	TEN ENT:

	 	as tenants by the entireties
	 
	 	 
	JT TEN:

	 	as joint tenants with right of survivorship and not as tenants in common

Under Uniform Gifts to Minors Act

(State)

Additional abbreviations may also be used though not in the above list.

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

 

 

(Please insert Social Security or Taxpayer I.D. or other Identifying Number of Assignee)

 

 

(Please print or type name and address including Postal Zip code of Assignee)

the within Corporate Unit Certificates and all rights thereunder, hereby irrevocably constituting
and appointing                      Attorney, to transfer said Corporate Unit Certificates on the books
of the Security Registrar, with full power of substitution in the premises.

	 	 	 
	Dated:

	 	Signature                                         
	 
	 	 
	 

	 	NOTICE: The signature to this assignment must correspond with the
name as it appears upon the face of the within Corporate Unit
Certificates in every particular, without alteration or enlargement
or any change whatsoever.
	 
	 	 
	 

	 	Signature Guarantee:                                         

Form of Treasury Unit

B-9

 

ELECTION FOR EARLY SETTLEMENT/CASH MERGER EARLY SETTLEMENT

     The undersigned Holder of this Treasury Unit Certificate hereby irrevocably exercises the
option to effect {Early Settlement} {Cash Merger Early Settlement} in accordance with the terms of
the Purchase Contract Agreement with respect to the Stock Purchase Contracts underlying the number
of Treasury Units evidenced by this Treasury Unit Certificate specified below. The undersigned
Holder directs that a certificate for shares of Common Stock or other securities or property
deliverable upon such {Early Settlement} {Cash Merger Early Settlement} be registered in the name
of, and delivered, together with a check in payment for any fractional share and any Treasury Unit
Certificate representing any Treasury Units evidenced hereby as to which {Early Settlement} {Cash
Merger Early Settlement} of the related Stock Purchase Contracts is not effected, to the
undersigned at the address indicated below (or to the securities account designated in writing by
the Registered Holder) unless a different name and address have been indicated below. Pledged
Treasury Securities deliverable upon such {Early Settlement} {Cash Merger Early Settlement} will be
transferred in accordance with the transfer instructions set forth below. If shares of Common Stock
or other securities or property are to be registered in the name of a Person other than the
undersigned, the undersigned will pay any transfer tax payable incident thereto.

	 	 	 	 	 
	Dated:

	 	Signature
	 	
 

			
	Signature Guarantee:	 	
 

     Number of Treasury Units evidenced hereby as to which {Early Settlement} {Cash Merger Early
Settlement} of the related Stock Purchase Contracts is being elected:

	 	 	 
	If shares of Common Stock or other securities or property are to be
registered in the name of and
delivered to and Pledged Treasury
Securities are to be transferred to
a Person other than the Holder,
please print such Person’s name and
address:

	 	REGISTERED HOLDER:
	
	 	 
	 
	 	 
	 

	 	 

Please print name and address of Registered
Holder:
	 
	 	 
	 

Name

	 	 

Name
	 
	 	 
	 

Address

	 	 

Address
	 
	 	 
	 

	 	 

	 
	 	 
	 

	 	 

	 
	 	 
	Social Security or other Taxpayer
	 	 
	Identification Number, if any
	 	 

     Transfer Instructions for Pledged Treasury Securities transferable upon {Early Settlement}
{Cash Merger Early Settlement}:

Form of Treasury Unit

B-10

 

Settlement Instructions for [Third] [SECOND] [FIRST] Stock Purchase Contract Date

	 	 	 	 	 
	No.                                         

	 	Number of Treasury Units:
	 	 

AMERICAN INTERNATIONAL GROUP, INC.

TREASURY UNITS

     The undersigned Holder directs that a certificate (including in book-entry if requested by the
Holder) for shares of Common Stock deliverable upon settlement on or after the [Third] [Second]
[First] Stock Purchase Date of the Stock Purchase Contracts underlying the number of Treasury Units
issued pursuant to the Purchase Contract Agreement, dated as of May 16, 2008, between American
International Group, Inc. and The Bank of New York, as Purchase Contract Agent and evidenced by the
Treasury Unit Certificate bearing the certificate number indicated above be registered in the name
of, and delivered, together with a check in payment for any fractional share, to the undersigned at
the address indicated below (or to the securities account designated in writing by the Registered
Holder) unless a different name and address have been indicated below. If shares are to be
registered in the name of a Person other than the undersigned, the undersigned will pay any
transfer tax payable incident thereto.

	 	 	 	 	 
	Dated:

	 	Signature
	 	
 

	 
	 	 	 	 
	 

	 	Signature Guarantee:
	 	
 

	 
	 	 	 	 
	 
	 	 	 	 
	If shares are to be registered
in the name of and delivered to
a Person other than the Holder,
please (i) print such Person’s
name and address and (ii)
provide a guarantee of your
signature:	 	Registered Holder:

Please print name and address of Registered Holder:
	 
	 	 	 	 
	 
	 	 	 	 
	 

Name	 	 

Name
	 
	 	 	 	 
	 

Address	 	 

Address
	 
	 	 	 	 
	 
	 	 

	 
	 	 	 	 
	 

Social Security or other Taxpayer	 	 

	Identification Number, if any
	 	 	 	 

Form of Treasury Unit

B-11

 

EXHIBIT C

INSTRUCTION TO PURCHASE CONTRACT AGENT

The Bank of New York,

as Purchase Contract Agent

Attention: Corporate Finance Group

101 Barclay Street-8W

New York, New York 10286

	 	 	 	 	 
	 

	 	Re:
	 	{Corporate Units} {Treasury Units} of
	 

	 	 	 	American International Group, Inc., a Delaware corporation (the “Company”)

     The undersigned Holder hereby notifies you that it has delivered to The Bank of New York, as
Securities Intermediary, for credit to the Collateral Account,
$          aggregate {principal amount of each applicable series of
Debentures} {principal amount of the applicable Qualifying Treasury Securities} in exchange for the
corresponding aggregate {principal amount of Pledged Debentures} {principal amount of Pledged
Treasury Securities} held in the Collateral Account, in accordance with the Pledge Agreement, dated
as of May 16, 2008 (the “Pledge Agreement”; unless otherwise defined herein, terms defined in the
Pledge Agreement are used herein as defined therein), between you, the Company, the Collateral
Agent, the Custodial Agent and the Securities Intermediary. The undersigned Holder has paid all
applicable fees and expenses relating to such exchange. The undersigned Holder hereby instructs you
to instruct the Collateral Agent to release to you on behalf of the undersigned Holder the {Pledged
Debentures} {Pledged Treasury Securities} related to such {Corporate Units} {Treasury Units}.

	 	 	 
	Dated:
	 	 
	 

	 	 
	 

	 	Signature Guarantee:
	Please print name and address of
Registered Holder:
	 	 
	 

	 	 
	 
	 	 
	 

	 	 
	Name

	 	Social Security or other Taxpayer Identification Number, if any
	Address
	 	 
	 
	 	 
	 

	 	 
	 

	 	 
	 

	 	 

Form of Instruction to 

Purchase Contract Agent

C-1

 

EXHIBIT D

NOTICE FROM STOCK PURCHASE CONTRACT AGENT

TO HOLDERS

     (Transfer of Collateral upon Occurrence of a Termination Event)

{HOLDER}

	 	 	 
	 

	 	 
	 
	 
	 

	 	 
	Attention:
	 	 
	Telecopy:
 
	 	 

	 	 	 	 	 
	 

	 	Re:
	 	{Corporate Units} {Treasury Units} of
	 

	 	 	 	American International Group, Inc., a Delaware corporation (the “Company”)

     Please refer to the Purchase Contract Agreement, dated as of May 16, 2008 (the “Purchase
Contract Agreement”; unless otherwise defined herein, terms defined in the Purchase Contract
Agreement are used herein as defined therein), between the Company and the undersigned, as Purchase
Contract Agent and as attorney-in-fact for the holders of Corporate Units and Treasury Units from
time to time.

     We hereby notify you we have received notice that a Termination Event has occurred and that
{the Debentures} {the Qualifying Treasury Securities} comprising a portion of your ownership
interest in                                    {Corporate Units} {Treasury Units} have been
released and are being held by us for your account pending receipt of transfer instructions with
respect to such {Debentures} {Qualifying Treasury Securities} (the “Released Securities”).

     Pursuant to Section 3.15 of the Purchase Contract Agreement, we hereby request written
transfer instructions with respect to the Released Securities. Upon receipt of your instructions
and upon transfer to us of your {Corporate Units}{Treasury Units} effected through book-entry or by
delivery to us of your {Corporate Unit Certificate}{Treasury Unit Certificate}, we shall transfer
the Released Securities by book-entry transfer or other appropriate procedures, in accordance with
your instructions.

     In the event you fail to effect such transfer or delivery, the Released Securities and any
distributions thereon, shall be held in our name, or a nominee in trust for your benefit, until
such time as such {Corporate Units}{Treasury Units} are transferred or your {Corporate Unit
Certificate} {Treasury Unit Certificate} is surrendered or satisfactory evidence is provided that
such {Corporate Unit Certificate}{Treasury Unit Certificate} has been mutilated, destroyed, lost or
stolen, together with any indemnification that we or the Company may require.

	 	 	 
	Dated:

	 	The Bank of New York
	 
	 	 
	 

	 	 
	 

	 	By: Name:
	 

	 	Title: Authorized Signatory

Form of Notice of Termination Event

D-1

 

EXHIBIT E

NOTICE TO SETTLE WITH CASH

The Bank of New York

as Purchase Contract Agent

Attention: Corporate Finance Group

101 Barclay Street-8W

New York, New York 10286

	 	 	 	 	 
	 

	 	Re:
	 	Equity Units of American International Group, Inc.,
	 

	 	 	 	a Delaware corporation (the “Company”)

     The undersigned Holder hereby irrevocably notifies you in accordance with Section 5.02 of the
Purchase Contract Agreement, dated as of May 16, 2008 (the “Purchase Contract Agreement”; unless
otherwise defined herein, terms defined in the Purchase Contract Agreement are used herein as
defined therein), between the Company and you, as Purchase Contract Agent and as attorney-in-fact
for the Holders of the Stock Purchase Contracts, that such Holder has elected to deliver $1,000 in
immediately available funds for each 40 Equity Units evidenced by the Certificate accompanying this
notice to the Securities Intermediary for deposit in the Collateral Account, at or prior to 11:00
a.m. (New York City time) on the Business Day immediately preceding the applicable Stock Purchase
Date. The $1,000 in immediately available funds so deposited shall be delivered to the Company on
the applicable Stock Purchase Date in settlement of the obligations of the Holder under Stock
Purchase Contracts on such Stock Purchase Date in accordance with the terms of the Purchase
Contract Agreement and the Pledge Agreement.

     The undersigned Holder hereby instructs you to notify promptly the Collateral Agent of the
undersigned Holders’ election to make such Settlement with Cash with respect to the Stock Purchase
Contracts related to such Holder’s Corporate Units on the applicable Stock Purchase Date.

Dated:

	 	 	 
	 

	 	 
	 

	 	Signature
	 
	 
	 	 
	 

	 	 
	 

	 	Signature Guarantee

Form of Notice to 

Settle with cash

E-1

 

EXHIBIT F

NOTICE FROM STOCK PURCHASE CONTRACT AGENT

TO COLLATERAL AGENT

(Settlement of Stock Purchase Contract through Remarketing)

Wilmington Trust Company,

as Collateral Agent

Rodney Square North

1100 North Market Street

Wilmington, Delaware 19890

Attention: Corporate Trust Administration

Telephone: (302) 636-6453

Facsimile: (302) 636-4140

	 	 	 	 	 
	 

	 	Re:
	 	Corporate Units of American International Group, Inc.,
	 

	 	 	 	a Delaware corporation (the “Company”)

     Please refer to the Purchase Contract Agreement, dated as of May 16, 2008 (the “Purchase
Contract Agreement”; unless otherwise defined herein, terms defined in the Purchase Contract
Agreement are used herein as defined therein), between the Company and the undersigned, as Purchase
Contract Agent and as attorney-in-fact for the Holders of Corporate Units from time to time.

     In accordance with Section 5.02 of the Purchase Contract Agreement and, based on notices of
Settlements with Cash received from Holders of Corporate Units as of 11:00 a.m. (New York City
time), on the second Business Day immediately preceding the applicable Stock Purchase Date, we
hereby notify you that Series {B-1}{B-2}{B-3} Debentures in an aggregate principal amount of
$                  are to be tendered for purchase in the Remarketing commencing on applicable
Remarketing Period Start Date.

	 	 	 
	Dated:

	 	The Bank of New York,
	 

	 	as the Purchase Contract Agent
	 
	 	 
	 

	 	 
	 

	 	By: Name:
	 

	 	     Title:

Form of Notice to Collateral Agent

F-1EX-4.9

 

PLEDGE AGREEMENT

among

AMERICAN INTERNATIONAL GROUP, INC.

and

WILMINGTON TRUST COMPANY,

as Collateral Agent, Custodial Agent and Securities Intermediary

and

THE BANK OF NEW YORK,

as Purchase Contract Agent

Dated as of May 16, 2008

 

 

 

TABLE OF CONTENTS

	 	 	 	 	 	 	 
	 

	 	Article I	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	Definitions	 	 	 	 
	 
	 	 	 	 	 	 
	Section 1.1

	 	Definitions
	 	 	1	 
	 
	 	 	 	 	 	 
	 

	 	Article II	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	Pledge	 	 	 	 
	 
	 	 	 	 	 	 
	Section 2.1

	 	Pledge
	 	 	5	 
	Section 2.2

	 	Termination
	 	 	5	 
	 
	 	 	 	 	 	 
	 

	 	Article III	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	Distributions on Pledged Collateral	 	 	 	 
	 
	 	 	 	 	 	 
	Section 3.1

	 	Income and Distributions
	 	 	6	 
	Section 3.2

	 	Payments Following Termination Event
	 	 	6	 
	Section 3.3

	 	Payments Prior to or on Stock Purchase Date
	 	 	6	 
	Section 3.4

	 	Payments to Purchase Contract Agent
	 	 	7	 
	Section 3.5

	 	Assets Not Properly Released
	 	 	7	 
	 
	 	 	 	 	 	 
	 

	 	Article IV	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	Control	 	 	 	 
	Section 4.1

	 	Establishment of Collateral Account
	 	 	7	 
	Section 4.2

	 	Treatment as Financial Assets
	 	 	8	 
	Section 4.3

	 	Sole Control by Collateral Agent
	 	 	8	 
	Section 4.4

	 	Securities Intermediary’s Location
	 	 	8	 
	Section 4.5

	 	No Other Claims
	 	 	8	 
	Section 4.6

	 	Investment and Release
	 	 	9	 
	Section 4.7

	 	Statements and Confirmations
	 	 	9	 
	Section 4.8

	 	Tax Allocations
	 	 	9	 
	Section 4.9

	 	No Other Agreements
	 	 	9	 
	Section 4.10

	 	Powers Coupled with an Interest
	 	 	9	 
	Section 4.11

	 	Waiver of Lien; Waiver of Set-off
	 	 	9	 
	 
	 	 	 	 	 	 
	 

	 	Article V	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	Initial Deposit; Creation of Treasury Units and Recreation of Corporate Units	 	 	 	 
	 
	 	 	 	 	 	 
	Section 5.1

	 	Initial Deposit of Debentures
	 	 	10	 
	Section 5.2

	 	Creation of Treasury Units
	 	 	10	 
	Section 5.3

	 	Recreation of Corporate Units
	 	 	11	 
	Section 5.4

	 	Termination Event
	 	 	12	 

 Pledge Agreement

i

 

	 	 	 	 	 	 	 
	Section 5.5

	 	Settlement with Cash
	 	 	13	 
	Section 5.6

	 	Early Settlement and Cash Merger Early Settlement
	 	 	14	 
	Section 5.7

	 	Application of Proceeds in Settlement of Stock Purchase Contracts
	 	 	15	 
	 
	 	 	 	 	 	 
	 

	 	Article VI	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	Voting Rights; Pledged Trust Preferred Securities	 	 	 	 
	 
	 	 	 	 	 	 
	Section 6.1

	 	Voting and Other Consensual Rights
	 	 	16	 
	 
	 	 	 	 	 	 
	 

	 	Article VII	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	Rights and Remedies	 	 	 	 
	 
	 	 	 	 	 	 
	Section 7.1

	 	Rights and Remedies of the Collateral Agent
	 	 	16	 
	Section 7.2

	 	Remarketing
	 	 	17	 
	Section 7.3

	 	Successful Remarketing
	 	 	18	 
	Section 7.4

	 	Remarketing of Separate Debentures
	 	 	18	 
	Section 7.5

	 	Substitutions
	 	 	19	 
	 
	 	 	 	 	 	 
	 

	 	Article VIII	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	Representations and Warranties; Covenants	 	 	 	 
	 
	 	 	 	 	 	 
	Section 8.1

	 	Representations and Warranties
	 	 	19	 
	Section 8.2

	 	Covenants
	 	 	20	 
	 
	 	 	 	 	 	 
	 

	 	Article IX	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	The Collateral Agent, the Custodial Agent and the Securities Intermediary	 	 	 	 
	 
	 	 	 	 	 	 
	Section 9.1

	 	Appointment, Powers and Immunities
	 	 	20	 
	Section 9.2

	 	Instructions of the Company
	 	 	21	 
	Section 9.3

	 	Reliance by Collateral Agent, Custodial Agent and Securities Intermediary
	 	 	22	 
	Section 9.4

	 	Certain Rights
	 	 	22	 
	Section 9.5

	 	Merger, Conversion, Consolidation or Succession to Business
	 	 	23	 
	Section 9.6

	 	Rights in Other Capacities
	 	 	23	 
	Section 9.7

	 	Non-reliance on Collateral Agent, the Custodial Agent and Securities Intermediary
	 	 	23	 
	Section 9.8

	 	Compensation and Indemnity
	 	 	24	 
	Section 9.9

	 	Failure to Act
	 	 	24	 
	Section 9.10

	 	Resignation of Collateral Agent, the Custodial Agent and Securities Intermediary
	 	 	25	 
	Section 9.11

	 	Right to Appoint Agent or Advisor
	 	 	26	 
	Section 9.12

	 	Survival
	 	 	26	 
	Section 9.13

	 	Exculpation
	 	 	26	 
	 
	 	 	 	 	 	 
	 

	 	Article X	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	Amendment	 	 	 	 
	 
	 	 	 	 	 	 
	Section 10.1

	 	Amendment without Consent of Holders
	 	 	27	 

 

 

	 	 	 	 	 	 	 
	Section 10.2

	 	Amendment with Consent of Holders
	 	 	27	 
	Section 10.3

	 	Execution of Amendments
	 	 	28	 
	Section 10.4

	 	Effect of Amendments
	 	 	28	 
	Section 10.5

	 	Reference of Amendments
	 	 	28	 
	 
	 	 	 	 	 	 
	 

	 	Article XI	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	Miscellaneous	 	 	 	 
	 
	 	 	 	 	 	 
	Section 11.1

	 	No Waiver
	 	 	29	 
	Section 11.2

	 	Governing Law; Submission to Jurisdiction
	 	 	29	 
	Section 11.3

	 	Notices
	 	 	29	 
	Section 11.4

	 	Successors and Assigns
	 	 	29	 
	Section 11.5

	 	Counterparts
	 	 	30	 
	Section 11.6

	 	Severability
	 	 	30	 
	Section 11.7

	 	Expenses, Etc.
	 	 	30	 
	Section 11.8

	 	Security Interest Absolute
	 	 	31	 
	Section 11.9

	 	Notice of Termination Event
	 	 	31	 
	Section 11.10

	 	Rights of the Purchase Contract Agent
	 	 	31	 
	 
	 	 	 	 	 	 
	Exhibit A —

	 	Instruction from Purchase Contract Agent to Collateral Agent (Creation of Treasury Units)	 	 	 	 
	Exhibit B —

	 	Instruction from Collateral Agent to Securities Intermediary (Creation of Treasury Units)	 	 	 	 
	Exhibit C —

	 	Instruction from Purchase Contract Agent to Collateral Agent (Recreation of Corporate Units)	 	 	 	 
	Exhibit D —

	 	Instruction from Collateral Agent to Securities Intermediary (Recreation of Corporate Units)	 	 	 	 
	Exhibit E —

	 	Notice of Settlement with Cash from Collateral Agent to Purchase Contract Agent (Settlement with Cash Amounts)	 	 	 	 
	Exhibit F —

	 	Instruction to Custodial Agent Regarding Remarketing	 	 	 	 
	Exhibit G —

	 	Instruction to Custodial Agent Regarding Withdrawal from Remarketing	 	 	 	 
	Schedule I —

	 	Contact Persons for Confirmation	 	 	 	 

 

 

     Pledge Agreement, dated as of May 16, 2008 among American International Group, Inc.,
a Delaware corporation (the “Company”), Wilmington Trust Company, as collateral agent for the
Company (in such capacity, the “Collateral Agent”), as custodial agent for the Holders from time to
time of the Equity Units (in such capacity, the “Custodial Agent”), and as securities intermediary
(as defined in Section 8-102(a)(14) of the UCC) with respect to each Collateral Account (in such
capacity, the “Securities Intermediary”), and The Bank of New York, as purchase contract agent and
as attorney-in-fact of the Holders from time to time of the Equity Units (in such capacity, the
“Purchase Contract Agent”) under the Purchase Contract Agreement.

Recitals

     Whereas, the Company and the Purchase Contract Agent are parties to the Purchase
Contract Agreement, dated as of the date hereof (as modified and supplemented and in effect from
time to time, the “Purchase Contract Agreement”), pursuant to which 78,400,000 Corporate Units will
be issued;

     Whereas, each Corporate Unit, at issuance, has an initial stated amount of $75 and
consists of (a) a stock purchase contract (a “Stock Purchase Contract”) pursuant to which the
Holder will purchase from the Company on each Stock Purchase Date, for $25, a number of shares of
the Company’s common stock, par value $2.50 per share (“Common Stock”), equal to the Settlement
Rate for such Stock Purchase Date; (b) a 1/40, or 2.5%, beneficial ownership interest in a Series
B-1 Debenture having a principal amount of $1,000; (c) a 1/40, or 2.5%, beneficial ownership
interest in a Series B-2 Debenture having a principal amount of $1,000, and (d) a 1/40, or 2.5%,
beneficial ownership interest in a Series B-3 Debenture having a principal amount of $1,000; and

     Whereas, pursuant to the terms of the Purchase Contract Agreement and the Stock
Purchase Contracts, the Holders of the Equity Units have irrevocably authorized the Purchase
Contract Agent, as attorney-in-fact of such Holders, among other things, to execute and deliver
this Agreement on behalf of such Holders and to grant the pledge to the Collateral Agent on behalf
of the Company provided herein of the Collateral to secure the Obligations;

     Now, Therefore, the Company, the Collateral Agent, the Custodial Agent, the
Securities Intermediary and the Purchase Contract Agent agree as follows:

ARTICLE I

DEFINITIONS

     Section 1.1 Definitions.

     For all purposes of this Agreement, except as otherwise expressly provided or unless the
context otherwise requires:

     (a) the terms defined in this Article have the meanings assigned to them in this Article and
include the plural as well as the singular, and nouns and pronouns of the masculine gender include
the feminine and neuter genders;

     (b) the words “herein,” “hereof” and “hereunder” and other words of similar import refer to
this Agreement as a whole and not to any particular Article, Section, Exhibit or other subdivision;

Pledge Agreement

1

 

     (c) the following terms which are defined in the UCC shall have the meanings set forth
therein: “Certificated Security,” “Control,” “Financial Asset,” “Entitlement Order,” “Securities
Account” and “Security Entitlement”;

     (d) capitalized terms used herein and not defined herein have the meanings assigned to them in
the Purchase Contract Agreement; and

     (e) the following terms have the meanings given to them in this Section 1.1(e):

     “Agreement” means this Pledge Agreement, as the same may be amended, modified or supplemented
from time to time.

     “Collateral” means the collective reference to:

     (i) the Collateral Account and all investment property and other financial assets from
time to time credited thereto and all security entitlements with respect thereto, including,
without limitation:

     (A) the Debentures and security entitlements relating thereto that are a
component of the Corporate Units from time to time,

     (B) any Pledged Treasury Portfolio purchased pursuant to a Successful
Remarketing of Debentures,

     (C) any Qualifying Treasury Securities and security entitlements relating
thereto delivered from time to time upon creation of Treasury Units in accordance
with Section 5.2, and

     (D) payments made by Holders pursuant to Section 5.5;

     (ii) all Proceeds of any of the foregoing (whether such Proceeds arise before or after
the commencement of any proceeding under any applicable bankruptcy, insolvency or other
similar law, by or against the pledgor or with respect to the pledgor); and

     (iii) all powers and rights now owned or hereafter acquired under or with respect to
the Collateral.

     “Collateral Account” means the securities account of Wilmington Trust Company, as Collateral
Agent, maintained by the Securities Intermediary and designated “Wilmington Trust Company, as
Collateral Agent of American International Group, Inc., as pledgee of The Bank of New York, as the
Purchase Contract Agent on behalf of and as attorney-in-fact for the Holders.”

     “Collateral Agent” means the Person named as the “Collateral Agent” in the first paragraph of
this Agreement until a successor Collateral Agent shall have become such pursuant to the applicable
provisions of this Agreement, and thereafter “Collateral Agent” shall mean such Person or any
subsequent successor who is appointed pursuant to this Agreement.

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

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     “Custodial Agent” means the Person named as the “Custodial Agent” in the first paragraph of
this Agreement until a successor Custodial Agent shall have become such pursuant to the applicable
provisions of this Agreement, and thereafter “Custodial Agent” shall mean such Person or any
subsequent successor who is appointed pursuant to this Agreement.

     “Obligations” means, with respect to each Holder, all obligations and liabilities of such
Holder under such Holder’s Stock Purchase Contract, the Purchase Contract Agreement and this
Agreement or any other document made, delivered or given in connection herewith or therewith,
including, without limitation, Holder’s obligation to pay the Purchase Price on each applicable
Stock Purchase Date, in each case whether on account of principal, interest (including, without
limitation, interest accruing before and after the filing of any petition in bankruptcy, or the
commencement of any insolvency, reorganization or like proceeding, relating to such Holder, whether
or not a claim for post-filing or post-petition interest is allowed in such proceeding), fees,
indemnities, costs, expenses or otherwise (including, without limitation, all fees and
disbursements of counsel to the Company or the Collateral Agent or the Securities Intermediary that
are required to be paid by the Holder pursuant to the terms of any of the foregoing agreements).

     “Permitted Investments” means any one of the following, in each case maturing on the Business
Day following the date of acquisition:

     (i) any evidence of indebtedness with an original maturity of 365 days or less issued,
or directly and fully guaranteed or insured, by the United States of America or any agency
or instrumentality thereof (provided that the full faith and credit of the United States of
America is pledged in support of the timely payment thereof or such indebtedness constitutes
a general obligation of it);

     (ii) deposits, certificates of deposit or acceptances with an original maturity of 365
days or less of any institution which is a member of the Federal Reserve System having
combined capital and surplus and undivided profits of not less than $500 million at the time
of deposit (and which may include the institution acting as Collateral Agent);

     (iii) investments with an original maturity of 365 days or less of any Person that are
fully and unconditionally guaranteed by a bank referred to in clause (ii);

     (iv) repurchase agreements and reverse repurchase agreements relating to marketable
direct obligations issued or unconditionally guaranteed by the United States of America or
issued by any agency thereof and backed as to timely payment by the full faith and credit of
the United States of America;

     (v) investments in commercial paper, other than commercial paper issued by the Company
or its Affiliates, of any corporation incorporated under the laws of the United States of
America or any State thereof, which commercial paper has a rating at the time of purchase at
least equal to “A-1” by Standard & Poor’s Ratings Services, a division of the McGraw-Hill
Companies (“S&P”), or at least equal to “P-1” by Moody’s Investors Service, Inc.
(“Moody’s”); and

     (vi) investments in money market funds (including, but not limited to, money market
funds managed by the institution acting as the Collateral Agent or an affiliate of the
institution acting as the Collateral Agent) registered under the Investment Company Act of
1940, as

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amended, subject to Rule 2a-7 thereunder, and rated in the highest applicable rating
category by S&P or Moody’s.

     “Pledge” means the lien and security interest created by this Agreement.

     “Pledged Debentures” means the Debentures and security entitlements with respect thereto from
time to time credited to the Collateral Account and not then released from the Pledge. References
to the applicable Pledged Debentures mean the Debentures comprising part of a Corporate Unit at any
time, and security entitlements with respect thereto, that are from time to time credited to the
Collateral Account and not then released from the Pledge.

     “Pledged Securities” means the Pledged Debentures and the Pledged Treasury Securities,
collectively.

     “Pledged Treasury Portfolio” means the Treasury Portfolio (within the meaning of clause (i) of
the definition of such term in the Purchase Contract Agreement) and security entitlements with
respect thereto that are from time to time credited to the Collateral Account and not released from
the Pledge.

     “Pledged Treasury Securities” means Qualifying Treasury Securities and security entitlements
with respect thereto from time to time credited to the Collateral Account and not then released
from the Pledge. References to the applicable Pledged Treasury Securities mean the Qualifying
Treasury Securities comprising part of a Treasury Unit at any time, and security entitlements with
respect thereto, that are from time to time credited to the Collateral Account and not then
released from the Pledge.

     “Proceeds” has the meaning ascribed thereto in Section 9-102(a)(64) of the UCC and includes,
without limitation, all interest, dividends, cash, instruments, securities, financial assets and
other property received, receivable or otherwise distributed upon the sale (including, without
limitation, in any Remarketing), exchange, collection or disposition of any financial assets from
time to time held in a Collateral Account.

     “Securities Intermediary” means the Person named as the “Securities Intermediary” in the first
paragraph of this Agreement until a successor Securities Intermediary shall have become such
pursuant to the applicable provisions of this Agreement, and thereafter “Securities Intermediary”
shall mean such Person or any subsequent successor who is appointed pursuant to this Agreement.

     “Purchase Contract Agent” means the Person named as the “Purchase Contract Agent” in the first
paragraph of this Agreement until a successor Purchase Contract Agent shall have become such
pursuant to the applicable provisions of the Purchase Contract Agreement, and thereafter “Purchase
Contract Agent” shall mean such Person or any subsequent successor who is appointed pursuant to
this Agreement.

     “TRADES” means the Treasury/Reserve Automated Debt Entry System maintained by the Federal
Reserve Bank of New York pursuant to the TRADES Regulations.

     “TRADES Regulations” means the regulations of the United States Department of the Treasury,
published at 31 C.F.R. Part 357, as amended from time to time. Unless otherwise defined herein,
all terms defined in the TRADES Regulations are used herein as therein defined.

     “Transfer” means (i) in the case of certificated securities in registered form, delivery as
provided in Section 8-301(a) of the UCC, endorsed to the transferee or in blank by an effective
endorsement, (ii) in the case of a direct transfer of U.S. Treasury securities, registration of the
transferee as the owner of such

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     Treasury Securities on TRADES and (iii) in the case of security entitlements, including,
without limitation, security entitlements with respect to U.S. Treasury securities, a securities
intermediary indicating by book entry that such security entitlement has been credited to the
transferee’s securities account.

     “UCC” means the Uniform Commercial Code as in effect in the State of New York from time to
time.

     “Value” means, with respect to any item of Collateral on any date, as to (1) cash, the face
amount thereof, (2) Qualifying Treasury Securities or the Treasury Portfolio, the aggregate
principal amount thereof at maturity, and (3) Debentures, the aggregate principal amount of
thereof.

     (f) The following terms have the meanings set forth in the Section of this Agreement:

	 	 	 
	Encumbrance

	 	Section 8.1(b)
	Indemnitee

	 	Section 9.8(b)
	Loss or Losses

	 	Section 9.8(b)

ARTICLE II

PLEDGE

     Section 2.1 Pledge.

     Each Holder, acting through the Purchase Contract Agent as such Holder’s attorney-in-fact, and
the Purchase Contract Agent, acting solely as such attorney-in-fact, hereby pledges and grants to
the Collateral Agent, as agent of and for the benefit of the Company, a continuing first priority
security interest in and to, and a lien upon and right of set-off against, all of such Person’s
right, title and interest in and to the Collateral to secure the prompt and complete payment and
performance when due (whether at maturity or otherwise) of the Obligations. The Collateral Agent
shall have all of the rights, remedies and recourses with respect to the Collateral afforded a
secured party by the UCC, in addition to, and not in limitation of, the other rights, remedies and
recourses afforded to the Collateral Agent by this Agreement.

     Section 2.2 Termination.

     As to each Holder, this Agreement and the Pledge created hereby shall terminate upon the
payment and performance in full of such Holder’s Obligations. Upon receipt of notice from the
Purchase Contract Agent of such termination, the Collateral Agent shall, except as otherwise
provided herein, instruct the Securities Intermediary to Transfer such Holder’s portion of the
Collateral to the Purchase Contract Agent for distribution to such Holder, free and clear of the
Pledge created hereby.

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ARTICLE III

DISTRIBUTIONS ON PLEDGED COLLATERAL

     Section 3.1 Income and Distributions.

     The Collateral Agent shall transfer to the Purchase Contract Agent for distribution to the
applicable Holders as provided in the Stock Purchase Contracts or Purchase Contract Agreement all
income and distributions received by the Collateral Agent on account of the Pledged Debentures or
Permitted Investments from time to time held in the Collateral Account.

     Section 3.2 Payments Following Termination Event.

     Following a Termination Event, the Collateral Agent shall transfer all payments of principal
amount it receives, if any, in respect of (1) the Pledged Debentures or any Pledged Treasury
Portfolio and (2) the Pledged Treasury Securities, to the Purchase Contract Agent for the benefit
of the applicable Holders for distribution to such Holders in accordance with their respective
interests, free and clear of the Pledge created hereby.

     Section 3.3 Payments Prior to or on Stock Purchase Date.

     (a) Subject to the provisions of Section 5.6, and except as provided in Sections 3.3(b) and
3.3(c), if no Termination Event shall have occurred,

     (i) all payments of principal received by the Securities Intermediary in respect of
(x) the Pledged Debentures or any Pledged Treasury Portfolio and (y) the Pledged Treasury
Securities shall be held in the Collateral Account and invested in Permitted Investments
until the applicable Stock Purchase Date; and

     (ii) as provided in Section 5.7, (x) the Pledged Debentures of each series shall be
transferred to the Company or upon the order of the Company on the applicable Stock Purchase
Date, to the Remarketing Agent, on the applicable Remarketing Settlement Date, and (y) with
respect to each Treasury Unit or Corporate Unit as to which the Holder has elected to effect
a Settlement with Cash, $25 in cash shall be transferred to the Company on the applicable
Stock Purchase Date. Any cash or Permitted Investments remaining in the Collateral Account
on the applicable Stock Purchase Date shall be released from the Pledge by the Collateral
Agent, and the Collateral Agent shall instruct the Securities Intermediary to, and the
Securities Intermediary shall, Transfer to the Purchase Contract Agent such balance for the
benefit of the applicable Holders for distribution to such Holders in accordance with their
respective interests, free and clear of the Pledge created thereby;

     (b) The Company shall instruct the Collateral Agent in writing as to the Permitted Investments
in which any payments made under Section 3.3(a) shall be invested; provided, however, that if the
Company fails to deliver such instructions by 10:30 a.m. (New York City time) on the day such
payments are received by the Collateral Agent, the Collateral Agent shall invest such payments in
the Permitted Investments as described in clause (vi) of the definition of Permitted Investments.
The Collateral Agent shall have no liability in respect of losses incurred as a result of the
failure of the Company to provide written investment direction. The Collateral Agent may
conclusively rely on any written direction and shall bear no liability for any loss or other damage
based on acting or omitting to act under this Section 3.3 pursuant to any direction of the Company
and neither the Collateral Agent nor the

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Securities Intermediary shall in any way be liable for the selection of Permitted Investments
or by reason of any insufficiency in a Collateral Account resulting from any loss on any Permitted
Investment included therein.

     (c) All payments of principal received by the Securities Intermediary in respect of (1) the
Debentures and (2) the Qualifying Treasury Securities or security entitlements thereto, that, in
each case, have been released from a Pledge pursuant hereto shall be transferred to the Purchase
Contract Agent for the benefit of the applicable Holders for distribution to such Holders in
accordance with their respective interests.

     Section 3.4 Payments to Purchase Contract Agent.

     The Securities Intermediary shall use commercially reasonable efforts to deliver payments to
the Purchase Contract Agent hereunder, to the extent it has received the same along with written
notification, to the account designated by the Purchase Contract Agent for such purpose not later
than 12:00 noon (New York City time) on the Business Day such payment is received by the Securities
Intermediary; provided, however, that if such payment is received by the Securities Intermediary on
a day that is not a Business Day or after 10:00 a.m. (New York City time) on a Business Day, then
the Securities Intermediary shall use commercially reasonable efforts to deliver such payment to
the Purchase Contract Agent no later than 10:30 a.m. (New York City time) on the next succeeding
Business Day.

     Section 3.5 Assets Not Properly Released.

     If the Purchase Contract Agent or any Holder shall receive any principal payments on account
of financial assets credited to the Collateral Account or to the Company and not released therefrom
in accordance with this Agreement, the Purchase Contract Agent or such Holder shall hold the same
as trustee of an express trust for the benefit of the Company and, upon receipt of an Issuer Order
of the Company so directing, promptly deliver the same to the Securities Intermediary for credit to
the Collateral Account or to the Company for application to the Obligations of such Holder, and the
Purchase Contract Agent and such Holder shall acquire no right, title or interest in any such
payments of principal so received. The Purchase Contract Agent shall have no liability under this
Section 3.5 unless and until it has been notified in writing that such payment was delivered to it
erroneously and shall have no liability for any action taken, suffered or omitted to be taken prior
to its receipt of such notice.

ARTICLE IV

CONTROL

     Section 4.1 Establishment of Collateral Account.

     The Securities Intermediary hereby confirms that:

     (a) the Securities Intermediary has established the Collateral Account and its
records identify the Collateral Agent as the sole person having a securities
entitlement with respect to such Collateral Account;

     (b) it shall at all times maintain the Collateral Account as a securities
account;

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     (c) subject to the terms of this Agreement, the Securities Intermediary shall
identify in its records the Collateral Agent as the sole entitlement holder entitled
to exercise the rights that comprise any financial asset credited to the Collateral
Account;

     (d) all property delivered to the Securities Intermediary pursuant to this
Agreement or the Purchase Contract Agreement, including any Permitted Investments,
will be credited promptly to the Collateral Account;

     (e) all securities or other property underlying any financial assets credited
to a Collateral Account shall be (i) registered in the name of the Purchase Contract
Agent and endorsed to the Securities Intermediary or in blank, (ii) registered in
the name of the Securities Intermediary or (iii) credited to another securities
account maintained in the name of the Securities Intermediary; and

     (f) in no case will any financial asset credited to a Collateral Account be
registered in the name of the Purchase Contract Agent or any Holder or specially
endorsed to the Purchase Contract Agent or any Holder unless such financial asset
has been further endorsed to the Securities Intermediary or in blank.

     Section 4.2 Treatment as Financial Assets.

     Each item of property (whether investment property, security, instrument or cash) credited to
a Collateral Account shall be treated as a financial asset.

     Section 4.3 Sole Control by Collateral Agent.

     Except as provided in Sections 6.1 and 9.1, at all times prior to the termination of the
Pledge, the Collateral Agent shall have sole Control of the Collateral Account, and the Securities
Intermediary shall take instructions and directions, and comply with entitlement orders, with
respect to the Collateral Account or any financial asset credited thereto solely from the
Collateral Agent. If at any time the Securities Intermediary shall receive an entitlement order
issued by the Collateral Agent and relating to the Collateral Account, the Securities Intermediary
shall comply with such entitlement order without further consent by the Purchase Contract Agent or
any Holder or any other Person. Except as otherwise permitted under this Agreement, until
termination of the Pledge, the Securities Intermediary will not comply with any entitlement orders
issued by the Purchase Contract Agent or any Holder.

     Section 4.4 Securities Intermediary’s Location.

     The Collateral Account and the rights and obligations of the Securities Intermediary, the
Collateral Agent, the Purchase Contract Agent and the Holders with respect thereto, shall be
governed by the laws of the State of New York. Regardless of any provision in any other agreement,
for purposes of the UCC, New York shall be deemed to be the Securities Intermediary’s jurisdiction.

     Section 4.5 No Other Claims.

     Except for the claims and interest of the Collateral Agent and of the Purchase Contract Agent
and the Holders in the Collateral Account, the Securities Intermediary (without having conducted
any investigation) has no actual knowledge of any claim to, or interest in, the Collateral Account
or in any financial asset credited thereto. If any Person asserts any lien, encumbrance or adverse
claim (including any writ, garnishment, judgment, warrant of attachment, execution or similar
process) against the

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Collateral Account or in any financial asset carried therein, the Securities Intermediary will
promptly notify the Collateral Agent and the Purchase Contract Agent.

     Section 4.6 Investment and Release.

     All proceeds of financial assets from time to time deposited in the Collateral Account shall
be invested and reinvested as provided in this Agreement. At no time prior to termination of the
Pledge with respect to any particular property shall such property be released from the Collateral
Account except in accordance with this Agreement or upon written instructions of the Collateral
Agent.

     Section 4.7 Statements and Confirmations.

     The Securities Intermediary will promptly send copies of all statements, confirmations and
other correspondence concerning the Collateral Account and any financial assets credited thereto
simultaneously to each of the Purchase Contract Agent, the Company and the Collateral Agent at
their addresses for notices under this Agreement.

     Section 4.8 Tax Allocations.

     The Purchase Contract Agent shall perform all customary tax reporting with respect to all
items of income, gain, expense and loss recognized in the Collateral Account to the extent such
reporting is required by law. None of the Securities Intermediary, the Custodial Agent or the
Collateral Agent shall have any tax reporting duties hereunder.

     Section 4.9 No Other Agreements.

     The Securities Intermediary has not entered into, and prior to the termination of the Pledge
will not enter into, any agreement with any other Person relating to the Collateral Account or any
financial assets credited thereto, including, without limitation, any agreement to comply with
entitlement orders of any Person other than the Collateral Agent.

     Section 4.10 Powers Coupled with an Interest.

     The rights and powers granted in this Article IV to the Collateral Agent have been granted in
order to perfect its security interests in the Collateral Account, are powers coupled with an
interest and will be affected neither by the bankruptcy of the Purchase Contract Agent or any
Holder nor by the lapse of time. The obligations of the Securities Intermediary under this Article
IV shall continue in effect until the termination of the Pledge with respect to any and all
Collateral.

     Section 4.11 Waiver of Lien; Waiver of Set-off.

     The Securities Intermediary waives any security interest, lien or right to make deductions or
set-offs that it may now have or hereafter acquire in or with respect to the Collateral Account,
any financial asset credited thereto or any security entitlement in respect thereof. Neither the
financial assets credited to the Collateral Account, nor the security entitlements in respect
thereof will be subject to deduction, set-off, banker’s lien or any other right in favor of any
person other than the Company.

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ARTICLE V

INITIAL DEPOSIT; CREATION OF TREASURY

UNITS AND RECREATION OF CORPORATE

UNITS

     Section 5.1 Initial Deposit of Debentures.

     (a) Prior to or concurrently with the execution and delivery of this Agreement, the Purchase
Contract Agent, on behalf of the initial Holders of the Corporate Units, shall Transfer to the
Collateral Agent for credit to the Collateral Account, the Debentures or security entitlements
relating thereto, and the Securities Intermediary shall thereupon indicate by book-entry that such
Debentures, regardless of whether received by the Securities Intermediary in the form of certified
securities effectively endorsed in blank or as security entitlements, have been credited to the
Collateral Account.

     (b) The Securities Intermediary may, at any time or from time to time, cause any or all
securities or other property underlying any financial assets credited to the Collateral Account to
be registered in the name of the Securities Intermediary, the Collateral Agent or their respective
nominees; provided, however, that unless any event of default (as specified in Section 7.1(b))
hereunder shall have occurred and be continuing, the Securities Intermediary agrees not to cause
any securities or other property underlying any financial assets to be so re-registered.

     Section 5.2 Creation of Treasury Units.

     (a) Pursuant to and in accordance with the procedures set forth in Section 3.13 of the
Purchase Contract Agreement, a Holder of Corporate Units will have the right, at any time (other
than during a Blackout Period), to create Treasury Units by substitution of the applicable
Qualifying Treasury Securities or security entitlements with respect thereto for the Pledged
Debentures of each series then comprising a part of all or a portion of such Holder’s Corporate
Units, in integral multiples of 40 Corporate Units, by:

     (i) Transferring to the Purchase Contract Agent, for further Transfer to the Securities
Intermediary for credit to the Collateral Account, principal amounts at maturity of the
applicable Qualifying Treasury Securities on the date of deposit or security entitlements
with respect thereto in principal amounts at maturity equal to the aggregate principal
amounts of the Pledged Debentures to be released, accompanied by a notice, substantially in
the form of Exhibit C to the Purchase Contract Agreement, whereupon the Purchase Contract
Agent shall deliver to the Collateral Agent a notice, substantially in the form of Exhibit
A, (A) stating that such Holder has notified the Purchase Contract Agent that such Holder
has Transferred the applicable Qualifying Treasury Securities or security entitlements with
respect thereto to the Purchase Contract Agent for further Transfer to the Securities
Intermediary for credit to the Collateral Account, (B) stating the aggregate principal
amount at maturity of each applicable Qualifying Treasury Security or security entitlements
with respect thereto Transferred by such Holder, and (C) requesting that the Collateral
Agent instruct the Securities Intermediary to accept such Transfer of Qualifying Treasury
Securities and to release from the Pledge to the Purchase Contract Agent as attorney-in-fact
of such Holder an equal principal amount of each series of Pledged Debentures that is then a
component of such Corporate Units; and

     (ii) delivering the related Corporate Units to the Purchase Contract Agent.

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     Upon receipt of such notice requesting the giving of instructions to the Securities
Intermediary that such Transfer be accepted and confirmation that Qualifying Treasury Securities or
security entitlements with respect thereto have been credited to the Collateral Account as
described in such notice, the Collateral Agent shall instruct the Securities Intermediary by a
notice, substantially in the form of Exhibit B, to release such Pledged Debentures from the Pledge
by Transfer to the Purchase Contract Agent for distribution to such Holder, free and clear of the
Pledge created hereby.

     (b) Upon credit to the Collateral Account of the Qualifying Treasury Securities or security
entitlements with respect thereto delivered by the Purchase Contract Agent and receipt of the
related instruction from the Collateral Agent, the Securities Intermediary shall release the
Pledged Debentures of each series that is then a component of such Corporate Units from the Pledge
and shall promptly Transfer the same to the Purchase Contract Agent for distribution to such
Holder, free and clear of the Pledge created hereby.

     Section 5.3 Recreation of Corporate Units.

     (a) Pursuant to and in accordance with the procedures set forth in Section 3.14 of the
Purchase Contract Agreement, at any time (other than during a Blackout Period), a Holder of
Treasury Units will have the right to recreate Corporate Units by substitution of the applicable
series of Debentures or security entitlements with respect thereto for Pledged Treasury Securities
in integral multiples of 40 Treasury Units by:

     (i) Transferring to the Purchase Contract Agent for further Transfer to the Securities
Intermediary, for credit to the Collateral Account, for each 40 Corporate Units to be
recreated, $1,000 principal amount of Debentures of each series that is then a component of
Corporate Units or security entitlements with respect thereto, accompanied by a notice,
substantially in the form of Exhibit C to the Purchase Contract Agreement, whereupon the
Purchase Contract Agent shall deliver to the Collateral Agent a notice, substantially in the
form of Exhibit C, stating that (A) such Holder has Transferred such Debentures or security
entitlements with respect thereto to the Purchase Contract Agent for further Transfer to the
Securities Intermediary for credit to the Collateral Account, (B) stating the aggregate
principal amount of Debentures of the applicable series or security entitlements with
respect thereto Transferred by such Holder, and (C) requesting that the Collateral Agent
instruct the Securities Intermediary to accept such Transfer and to release from the Pledge
to the Purchase Contract Agent a corresponding amount of the applicable Pledged Treasury
Securities related to such Treasury Units; and

     (ii) delivering the related Treasury Units to the Purchase Contract Agent.

     Upon receipt of such notice, the giving of instructions to the Securities Intermediary that
such Transfer be accepted and confirmation that such Debentures or security entitlements with
respect thereto have been credited to the Collateral Account, as described in such notice, the
Collateral Agent shall instruct the Securities Intermediary by a notice substantially in the form
of Exhibit D to release such Pledged Treasury Securities from the Pledge by Transfer to the
Purchase Contract Agent for distribution to such Holder, free and clear of the Pledge created
hereby.

     (b) Upon credit to the Collateral Account of Debentures or security entitlements with respect
thereto delivered by the Purchase Contract Agent and receipt of the related instruction from the
Collateral Agent, the Securities Intermediary shall release such Pledged Treasury Securities from
the Pledge and

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shall promptly Transfer the same to the Purchase Contract Agent for distribution to such
Holder, free and clear of the Pledge created hereby.

     Section 5.4 Termination Event.

     (a) Upon receipt by the Collateral Agent of written notice from the Company or the Purchase
Contract Agent that a Termination Event has occurred, the Collateral Agent shall release all
Collateral from the Pledge and shall promptly instruct the Securities Intermediary to Transfer:

     (i) any Pledged Debentures or Pledged Treasury Portfolio or security entitlements with
respect thereto;

     (ii) any Pledged Treasury Securities or security entitlements with respect thereto; and

     (iii) any payments by Holders (or the Permitted Investments of such payments) pursuant
to Section 5.5,

to the Purchase Contract Agent for the benefit of the Holders for distribution to such Holders, in
accordance with their respective interests, free and clear of the Pledge created hereby.

     (b) If such Termination Event shall result from the Company’s becoming a debtor under the
Bankruptcy Code, and if the Collateral Agent shall for any reason fail promptly to effectuate the
release and Transfer of all Pledged Debentures, the Pledged Treasury Portfolio, any Pledged
Treasury Securities and payments by Holders (or the Permitted Investments of such payments)
pursuant to Section 5.5 and Proceeds of any of the foregoing, as the case may be, as provided by
this Section 5.4, the Purchase Contract Agent shall:

     (i) use its best efforts to obtain an opinion of a nationally recognized law firm to
the effect that, notwithstanding the Company being the debtor in such a bankruptcy case, the
Collateral Agent will not be prohibited from releasing or Transferring the Collateral as
provided in this Section 5.4 and shall deliver or cause to be delivered such opinion to the
Collateral Agent within ten days after the occurrence of such Termination Event, and if (A)
the Purchase Contract Agent shall be unable to obtain such opinion within 10 days after the
occurrence of such Termination Event or (B) the Collateral Agent shall continue, after
delivery of such opinion, to refuse to effectuate the release and Transfer of all Pledged
Debentures, the Pledged Treasury Portfolio, all Pledged Treasury Securities and the payments
by Holders (or the Permitted Investments of such payments) pursuant to Section 5.5 and
Proceeds of any of the foregoing, as the case may be, as provided in this Section 5.4, then
the Purchase Contract Agent shall, upon receipt of instructions in accordance with the
Purchase Contract Agreement, within 15 days after the occurrence of such Termination Event
commence an action or proceeding in the court having jurisdiction of the Company’s case
under the Bankruptcy Code seeking an order requiring the Collateral Agent to effectuate the
release and Transfer of all Pledged Debentures, the Pledged Treasury Portfolio, all Pledged
Treasury Securities and the payments by Holders (or the Permitted Investments of such
payments) pursuant to Section 5.5 hereof and Proceeds of any of the foregoing, or as the
case may be, as provided by this Section 5.4; or

     (ii) upon receipt of instructions in accordance with the Purchase Contract Agreement,
commence an action or proceeding like that described in Section 5.4(b)(i) within 10 days
after the occurrence of such Termination Event.

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     Section 5.5 Settlement with Cash.

     (a) Upon receipt by the Collateral Agent of (1) a notice from the Purchase Contract Agent
promptly after the receipt by the Purchase Contract Agent of the certificate evidencing the
Corporate Units or Treasury Units, as the case may be, at the offices of the Purchase Contract
Agent with a notice from a Holder of Corporate Units (other than a Corporate Unit as to which an
interest in the Treasury Portfolio has replaced an interest in a series of Debentures) or Treasury
Units that such Holder has elected, in accordance with the procedures specified in Section
5.02(b)(i) of the Purchase Contract Agreement to effect a Settlement with Cash, on or prior to
11:00 a.m. (New York City time) of the second Business Day immediately preceding a Stock Purchase
Date and (2) payment by such Holder by deposit in the Collateral Account prior to 11:00 a.m. (New
York City time) on the Business Day immediately preceding such Stock Purchase Date of the Purchase
Price in lawful money of the United States by federal same day funds or wire transfer of
immediately available funds payable to or upon the order of the Securities Intermediary, then the
Collateral Agent shall:

     (i) instruct the Securities Intermediary promptly to invest any such cash in Permitted
Investments consistent with the instructions of the Company as provided for below in this
Section 5.5(a);

     (ii) instruct the Securities Intermediary to release from the Pledge such Holder’s
related Pledged Securities of the applicable series, as to which such Holder has effected a
Settlement with Cash pursuant to this Section 5.5(a); and

     (iii) instruct the Securities Intermediary to Transfer all such Pledged Securities to
the Purchase Contract Agent for distribution to such Holder, in each case free and clear of
the Pledge created hereby.

     The Company shall instruct the Collateral Agent in writing as to the Permitted Investments in
which any such cash shall be invested; provided, however, that if the Company fails to deliver such
instructions by 10:30 a.m. (New York City time) on the day such payments are received by the
Collateral Agent, the Collateral Agent shall invest such payments in the Permitted Investments as
described in clause (vi) of the definition of Permitted Investments. The Collateral Agent shall
have no liability in respect of losses incurred as a result of the failure of the Company to
provide written investment direction. The Collateral Agent may conclusively rely on any written
direction and shall bear no liability for any loss or other damage based on acting or omitting to
act under this Section 5.5(a) pursuant to any direction of the Company and neither the Collateral
Agent nor the Securities Intermediary shall in any way be liable for the selection of Permitted
Investments or by reason of any insufficiency in a Collateral Account resulting from any loss on
any Permitted Investment included therein.

     Upon receipt of the proceeds upon the maturity of the Permitted Investments on the applicable
Stock Purchase Date, the Collateral Agent shall (A) instruct the Securities Intermediary to pay the
portion of such proceeds, in immediately available funds, in an aggregate amount equal to the
Purchase Price, to the Company on such Stock Purchase Date, and (B) cause the Securities
Intermediary to release any amounts in excess of the Purchase Price earned from such Permitted
Investments to the Purchase Contract Agent for distribution to the Purchase Contract Agent on
behalf of the Holder.

     (b) If a Holder of Corporate Units (i) fails to notify the Purchase Contract Agent of its
intention to make a Settlement with Cash as provided in Section 5.02(b)(i) of the Purchase Contract
Agreement or (ii) does notify the Purchase Contract Agent of its intention to make a Settlement
with

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Cash, but fails to deposit such cash as required by Section 5.02(b)(ii) of the Purchase
Contract Agreement, to the extent of the amount of cash not so deposited, such Holder shall be
deemed to have consented to the disposition of such Holder’s Pledged Securities in accordance with
Section 5.02(b)(iii) of the Purchase Contract Agreement, and in the case of such failure as
provided in clause (ii) of this Section 5.5(b), also be deemed to withdraw such notice to the
Purchase Contract Agent to effect the Settlement with Cash to the extent of the amount of cash not
deposited as required by Section 5.02(b)(ii) of the Purchase Contract Agreement; provided that the
cash deposited as required by Section 5.02(b)(ii) of the Purchase Contract Agreement shall be in
integral multiples of $1,000, and any amount in a fraction of such integral multiples shall be
deemed not deposited as provided in clause (ii) of this Section 5.5(b) and transferred to the
Purchase Contract Agent promptly.

     (c) If a Holder of Treasury Units (i) fails to notify the Purchase Contract Agent of its
intention to make a Settlement with Cash as provided in Section 5.02(b)(i) of the Purchase Contract
Agreement or (ii) does notify the Purchase Contract Agent of its intention to make a Settlement
with Cash, but fails to deposit such cash as required by Section 5.02(b)(ii) of the Purchase
Contract Agreement, to the extent of the amount of cash not so deposited, such Holder shall be
deemed to have consented to the application of the proceeds of the Pledged Securities in accordance
with Section 5.02(b)(iv) of the Purchase Contract Agreement, and in the case of such failure as
provided in clause (ii) of this Section 5.5(c), also be deemed to withdraw such notice to the
Purchase Contract Agent to effect the Settlement with Cash to the extent of the amount of cash not
deposited as required by Section 5.02(b)(ii) of the Purchase Contract Agreement; provided that the
cash deposited as required by Section 5.02(b)(ii) of the Purchase Contract Agreement shall be in
integral multiples of $1,000, and any amount in a fraction of such integral multiples shall be
deemed not deposited as provided in clause (ii) of this Section 5.5(b) and transferred to the
Purchase Contract Agent promptly.

     (d) As soon as practical after 11:00 a.m. (New York City time) on the Business Day preceding
the applicable Stock Purchase Date, the Collateral Agent shall deliver to the Purchase Contract
Agent a notice, substantially in the form of Exhibit E, stating (i) the amount of cash that it has
received with respect to the Settlement with Cash of Corporate Units, and (ii) the amount of cash
that it has received with respect to the Settlement with Cash of Treasury Units.

     Section 5.6 Early Settlement and Cash Merger Early Settlement.

     Upon receipt by the Collateral Agent of a notice from the Purchase Contract Agent that a
Holder of Equity Units has elected to effect either (i) Early Settlement of its obligations under
the Stock Purchase Contracts forming a part of such Equity Units in accordance with the terms of
the Stock Purchase Contracts and Section 5.07 of the Purchase Contract Agreement or (ii) Cash
Merger Early Settlement of its obligations under the Stock Purchase Contracts forming a part of
such Equity Units in accordance with the terms of the Stock Purchase Contracts and Section
5.04(b)(ii) of the Purchase Contract Agreement (which notice shall set forth the number of such
Stock Purchase Contracts as to which such Holder has elected to effect Early Settlement or Cash
Merger Early Settlement), and that the Purchase Contract Agent has received from such Holder, and
paid to the Company as confirmed in writing by the Company, the related Early Settlement Amount or
Purchase Price for each $25 stated amount of Stock Purchase Contracts being settled pursuant to the
terms of the Stock Purchase Contracts and the Purchase Contract Agreement, then the Collateral
Agent shall release from the Pledge (1) the applicable Pledged Debentures of each series in the
case of a Holder of Corporate Units or (2) the applicable Pledged Treasury Securities of each
series, in the case of a Holder of Treasury Units, in each case in an amount equal to the product
of (x) $25 for each $25 stated amount of Stock Purchase Contracts being settled, and (y) the number
of Stock Purchase Contracts as to which such Holder has elected to effect Early Settlement or Cash
Merger

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Early Settlement, and shall instruct the Securities Intermediary to Transfer all such Pledged
Debentures or Pledged Treasury Securities, as the case may be, to the Purchase Contract Agent for
distribution to such Holder, in each case free and clear of the Pledge created hereby.

     Section 5.7 Application of Proceeds in Settlement of Stock Purchase Contracts.

     (a) In the event of a Successful Remarketing of a series of Debentures, the Collateral Agent
shall instruct the Securities Intermediary to Transfer the Pledged Debentures of such series to the
Remarketing Agent, upon confirmation of deposit by the Remarketing Agent of the Proceeds of such
Successful Remarketing (less, to the extent permitted by the Remarketing Agreement, the Remarketing
Agent’s Fee) in the Collateral Account and the Collateral Agent shall thereupon instruct the
Securities Intermediary to purchase the Treasury Portfolio with the Proceeds of the Successful
Remarketing. A Holder of Corporate Units shall be deemed to have elected to pay for the shares of
Common Stock to be issued under the Stock Purchase Contract underlying the Corporate Units from the
Proceeds of the related Pledged Treasury Portfolio after a Successful Remarketing. Without
receiving any instruction from any Holder, the Collateral Agent shall instruct the Securities
Intermediary to remit the Proceeds of the related Pledged Treasury Portfolio equal to the purchase
price of the shares of Common Stock to be delivered on the applicable Stock Purchase Date to the
Company to satisfy in full such Holder’s obligations to pay the Purchase Price to purchase shares
of Common Stock under the related Stock Purchase Contracts on such Stock Purchase Date and to remit
the balance of the Proceeds from the related Pledged Treasury Portfolio, if any, to the Purchase
Contract Agent for distribution to such Holder.

     In the event of a Failed Remarketing with respect to any series of Debentures, the Collateral
Agent, for the benefit of the Company, will, at the written instruction of the Company, deliver the
Pledged Debentures of such series in accordance with the Company’s written instructions to satisfy
in full, from any such disposition or retention, such Holders’ obligations to pay the Purchase
Price for the shares of Common Stock to be issued on the applicable Stock Purchase Date under the
Stock Purchase Contracts underlying such Corporate Units. The Holders recognize that there may be
restrictions under the U.S. Federal securities laws on the ability of the Collateral Agent to sell
the Pledged Debentures and that the Pledged Debentures may need to be sold in a non-public
transaction to a limited number of institutional investors or a sale may need to be delayed in
order to register the sale under the Securities Act of 1933, as amended. As a result, the proceeds
from any sale of the Pledged Debentures may be substantially less than the principal amount of the
Debentures. If the Company retains the Pledged Debentures in satisfaction of the Obligations, the
Holders and the Company agree, to the extent permitted by law, that the Pledged Debentures will be
treated as sold to the Company for a purchase price equal to the principal amount thereof. The
Holders agree, to the extent permitted by law, that the principal amount is not less than the value
of the Pledged Debentures in the context of a Failed Remarketing. If the Pledged Debentures are
sold other than to the Company, the Collateral Agent shall promptly remit the Proceeds, if any, of
the Pledged Debentures of such series in excess of the aggregate Purchase Price for the shares of
Common Stock to be issued on the applicable Stock Purchase Date for such series under such Stock
Purchase Contracts to the Purchase Contract Agent for payment to the Holders of the Corporate Units
to which such Debentures relate.

     If a Holder of Corporate Units (unless the Treasury Portfolio has replaced the Debentures
represented by such Corporate Units) has not elected to effect a Settlement with Cash by notifying
the Purchase Contract Agent in the manner provided for in Section 5.02(b)(i) of the Purchase
Contract Agreement or does notify the Purchase Contract Agent as provided in Section 5.02(b)(i) of
the Purchase Contract Agreement of its intention to effect a Settlement with Cash, but fails to
deliver the appropriate amount of cash as required by Section 5.02(b)(ii) of the Purchase Contract
Agreement, such Holder shall

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be deemed to have consented to the disposition of such Holder’s Pledged Securities and Pledged
Treasury Portfolio, if applicable, in accordance with Section 5.02(b)(iii) of the Purchase Contract
Agreement and the preceding paragraph upon a Failed Remarketing.

     (b) A Holder of Treasury Units (unless such Holder elects to effect a Settlement with Cash
pursuant to Section 5.5) shall be deemed to have elected to pay for the shares of Common Stock to
be issued under the Stock Purchase Contract on any Stock Purchase Date underlying the Treasury
Units from the Proceeds of the related Pledged Treasury Securities. Without receiving any
instruction from any Holder, the Collateral Agent shall instruct the Securities Intermediary to
remit the Proceeds of the related Pledged Treasury Securities to the Company in settlement of such
Stock Purchase Contracts on such Stock Purchase Date (in the case of a Holder of Treasury Units).
In the event the Proceeds from Permitted Investments acquired with the proceeds of Qualifying
Treasury Securities prior to the applicable Stock Purchase Date exceeds the aggregate Purchase
Price of the Stock Purchase Contracts being settled on such Stock Purchase Date, the Collateral
Agent shall instruct the Securities Intermediary to transfer such excess, when received, to the
Purchase Contract Agent for distribution to Holders.

ARTICLE VI

VOTING RIGHTS AND OTHER CONSENSUAL

RIGHTS

     Section 6.1 Voting and Other Consensual Rights.

     Subject to the terms of Section 4.02 of the Purchase Contract Agreement, the Purchase Contract
Agent may exercise, or refrain from exercising, any and all voting and other consensual rights
pertaining to the Pledged Debentures or any part thereof for any purpose not inconsistent with the
terms of this Agreement and in accordance with the terms of the Purchase Contract Agreement;
provided, however, that the Purchase Contract Agent shall not exercise or shall not refrain from
exercising such right, as the case may be, if, in the judgment of the Company, such action would
impair or otherwise have a material adverse effect on the value of all or any of the Pledged
Debentures; provided, further, that the Purchase Contract Agent shall give the Company and the
Collateral Agent at least five Business Days’ prior written notice of the manner in which it
intends to exercise, or its reasons for refraining from exercising, any such right. Upon receipt
of any notices and other communications in respect of any Pledged Debentures, including notice of
any meeting at which holders of the Debentures are entitled to vote or solicitation of consents,
waivers or proxies of holders of the Debentures, the Collateral Agent shall use reasonable efforts
to send promptly to the Purchase Contract Agent such notice or communication, and as soon as
reasonably practicable after receipt of a written request therefore from the Purchase Contract
Agent, execute and deliver to the Purchase Contract Agent such proxies and other instruments in
respect of such Pledged Debentures (in form and substance satisfactory to the Collateral Agent) as
are prepared by the Company and delivered to the Purchase Contract Agent with respect to the
Pledged Debentures.

ARTICLE VII

RIGHTS AND REMEDIES

     Section 7.1 Rights and Remedies of the Collateral Agent.

     (a) In addition to the rights and remedies set forth herein or otherwise available at law or
in equity, after an event of default (as specified in Section 7.1(b)) hereunder, the Collateral
Agent shall have

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all of the rights and remedies with respect to the Collateral of a secured party under the UCC
(whether or not the UCC is in effect in the jurisdiction where the rights and remedies are
asserted) and the TRADES Regulations and such additional rights and remedies to which a secured
party is entitled under the laws in effect in any jurisdiction where any rights and remedies
hereunder may be asserted. Without limiting the generality of the foregoing, such remedies may
include, to the extent permitted by applicable law, (1) retention of the Pledged Debentures of the
applicable series (or, if such Pledged Debentures shall have been sold in a Successful Remarketing,
of the Pledged Treasury Portfolio) or the Pledged Treasury Securities of the applicable series or
(2) sale of such Pledged Debentures, Pledged Treasury Portfolio or Pledged Treasury Securities in
one or more public or private sales, in either case in full satisfaction of the Holders’
obligations under the Stock Purchase Contracts and the Purchase Contract Agreement.

     (b) Without limiting any rights or powers otherwise granted by this Agreement to the
Collateral Agent, in the event the Collateral Agent is unable to make payments from amounts
transferred or transferable to the Company on account of the principal payments of any Pledged
Treasury Portfolio or Pledged Treasury Securities (including, without limitation, any Permitted
Investments purchased with the proceeds of any of the foregoing) as provided in Article III, in
satisfaction of the Obligations of the Holders of the Equity Units under the related Stock Purchase
Contracts on any Stock Purchase Date, the inability to make such payments shall constitute an
“event of default” hereunder and the Collateral Agent shall have and may exercise, with reference
to such Collateral any and all of the rights and remedies available to a secured party under the
UCC and the TRADES Regulations after default by a debtor, and as otherwise granted herein or under
any other law.

     (c) Without limiting any rights or powers otherwise granted by this Agreement to the
Collateral Agent, the Collateral Agent is hereby irrevocably authorized to receive and collect all
payments of (i) the principal amount of the Pledged Debentures and (ii) the principal amount of any
Pledged Treasury Portfolio or Pledged Treasury Securities (including, without limitation, any
Permitted Investments purchased with the proceeds of any of the foregoing), subject, in each case,
to the provisions of Article III, and as otherwise granted herein.

     (d) The Purchase Contract Agent, as attorney-in-fact of the Holders, and each Holder of Equity
Units agrees that, from time to time, upon the written request of the Collateral Agent or the
Purchase Contract Agent, such Holder and the Purchase Contract Agent, as attorney-in-fact of the
Holders, shall execute and deliver such further documents and do such other acts and things as the
Company may reasonably request in order to maintain the Pledge, and the perfection and priority
thereof, and to confirm the rights of the Collateral Agent hereunder. The Purchase Contract Agent
shall have no liability to any Holder for executing any documents or taking any such acts requested
by the Collateral Agent hereunder, except for liability for its own negligent acts, its own
negligent failure to act or its own willful misconduct.

     Section 7.2 Remarketing.

     As soon as practicable after 5:00 p.m. (New York City time) on the second Business Day
immediately preceding the Remarketing Period Start Date, the Collateral Agent shall notify the
Remarketing Agent of the aggregate principal amount of the applicable series of Pledged Debentures
that is to be remarketed.

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     Section 7.3 Successful Remarketing.

     In the event of a Successful Remarketing, the Collateral Agent shall, at the written direction
of the Company, instruct the Securities Intermediary to (i) Transfer the applicable Pledged
Debentures to the Remarketing Agent upon confirmation of deposit by the Remarketing Agent of the
Proceeds of such Successful Remarketing (after deducting any Remarketing Agent’s Fee in accordance
with the Remarketing Agreement) in the Collateral Account and apply such Proceeds to purchase the
Treasury Portfolio, (ii) Transfer the Treasury Portfolio (other than the Pledged Treasury
Portfolio) to the Custodial Agent for deposit in an account separate from the Collateral Account,
(iii) apply an amount from the Proceeds of the Pledged Treasury Portfolio on the applicable Stock
Purchase Date equal to the aggregate Purchase Price for the shares of Common Stock to be issued
under the related Stock Purchase Contracts on the applicable Stock Purchase Date in full
satisfaction of such Holders’ obligations to pay the Purchase Price under the related Stock
Purchase Contracts, and (iv) promptly remit the remaining portion of such Proceeds to the Purchase
Contract Agent for payment to the Holders of Corporate Units, in accordance with their respective
interests and the Purchase Contract Agreement. In the case of the Treasury Portfolio purchased
with the Proceeds of the Pledged Debentures on the First Remarketing Settlement Date, on the next
Payment Date the Custodial Agent shall remit the remaining portion of the Proceeds of the portion
of the Treasury Portfolio corresponding to clause (ii) of the definition of such term to the
Purchase Contract Agent for payment to the Holders of Corporate Units pursuant to
Section 5.02(a)(i) of the Purchase Contract Agreement, in accordance with their respective
interests and the Purchase Contract Agreement. On the applicable Stock Purchase Date, the Custodial
Agent shall promptly remit the remaining portion of the Proceeds of the Treasury Portfolio to the
Purchase Contract Agent for payment to the Holders of Corporate Units, in accordance with their
respective interests and the Purchase Contract Agreement. With respect to Separate Debentures,
any Proceeds of such Remarketing (after deducting any Remarketing Agent’s Fee in accordance with
the Remarketing Agreement) attributable to the Separate Debentures will be remitted to the
Custodial Agent for payment to the holders of Separate Debentures. In the event of a Failed
Remarketing, the Pledged Debentures shall remain credited to the Collateral Account and Section 5.7
shall apply.

     Section 7.4 Remarketing of Separate Debentures.

     (a) On or prior to 5:00 p.m. (New York City time) on the second Business Day immediately
preceding each Remarketing Period Start Date, but no earlier than the Payment Date immediately
preceding such date, Holders of Separate Debentures of the series of Debentures that is the subject
of the Remarketing may elect to have their Separate Debentures remarketed by delivering their
Separate Debentures along with a notice of such election substantially in the form of Exhibit F to
the Collateral Agent, acting as Custodial Agent. The Custodial Agent shall hold Separate
Debentures in an account separate from the Collateral Account in which the Pledged Securities and
Pledged Treasury Portfolio shall be held. Holders of Separate Debentures electing to have their
Separate Debentures remarketed will also have the right to withdraw that election by written notice
to the Collateral Agent, substantially in the form of Exhibit G, on or prior to 5:00 p.m. (New York
City time) on the second Business Day immediately preceding the applicable Remarketing Period Start
Date, upon which notice the Custodial Agent shall return such Separate Debentures to such Holder.
After such time, such election shall become an irrevocable election to have such Separate
Debentures remarketed in such Remarketing.

     (b) Promptly after 5:00 p.m. (New York City time) on second the Business Day immediately
preceding the applicable Remarketing Period Start Date, the Custodial Agent shall notify the
Remarketing Agent of the aggregate principal amount of the Separate Debentures to be remarketed and
deliver to the Remarketing Agent for remarketing all Separate Debentures delivered to the Custodial
Agent pursuant to

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this Section 7.4(b) and not validly withdrawn prior to such date. In the event of a
Successful Remarketing, after deducting the Remarketing Agent’s Fee, the Remarketing Agent will
remit to the Custodial Agent the remaining portion of the Proceeds of such Remarketing for payment
to the Holders of the remarketed Separate Debentures, in accordance with their respective
interests. In the event of a Failed Remarketing, the Remarketing Agent will promptly return such
Separate Debentures to the Custodial Agent for distribution to the appropriate Holders.

     Section 7.5 Substitutions.

     Whenever a Holder has the right to substitute Treasury Securities, Debentures or security
entitlements for any of them, as the case may be, for financial assets held in a Collateral
Account, such substitution shall not constitute a novation of the security interest created hereby.

ARTICLE VIII

REPRESENTATIONS AND WARRANTIES;

COVENANTS

     Section 8.1 Representations and Warranties.

     Each Holder from time to time, acting through the Purchase Contract Agent as attorney-in-fact
(it being understood that the Purchase Contract Agent shall not be liable for any representation or
warranty made by or on behalf of a Holder), hereby represents and warrants to the Collateral Agent
(with respect to such Holder’s interest in the Collateral), which representations and warranties
shall be deemed repeated on each day a Holder through the Purchase Contract Agent Transfers
Collateral, that:

     (a) such Holder has the power to grant a security interest in and lien on the
Collateral;

     (b) such Holder is the sole beneficial owner of the Collateral and, in the case
of Collateral delivered in physical form, is the sole holder of such Collateral and
is the sole beneficial owner of, or has the sole right to Transfer, the Collateral
it Transfers to the Collateral Agent for credit to an Collateral Account, free and
clear of any security interest, lien, encumbrance, call, liability to pay money or
other restriction of any nature, and whether arising by operation of law or by
consent, other than the security interest and lien granted under Article II (an
“Encumbrance”);

     (c) upon the Transfer of the Collateral to the Collateral Agent for credit to
an Collateral Account, the Collateral Agent, for the benefit of the Company, will
have a valid and perfected first priority security interest therein (assuming that
any central clearing operation or any securities intermediary or other entity not
within the control of the Holder involved in the Transfer of the Collateral,
including the Collateral Agent and the Securities Intermediary, gives the notices
and takes the action required of it hereunder and under applicable law for
perfection of that interest and assuming the establishment and exercise of Control
pursuant to Article IV); and

     (d) the execution and performance by the Holder of its obligations under this
Agreement will not result in the creation of an Encumbrance or violate any provision
of any existing law, rule or regulation applicable to it, or any judgment, order or
decree

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applicable to it, or of any mortgage, charge, pledge, indenture, contract or
undertaking to which it is a party or which is binding on it or any of its assets.

     Section 8.2 Covenants.

     The Purchase Contract Agent and each of the Holders from time to time, acting through the
Purchase Contract Agent as its attorney-in-fact (it being understood that the Purchase Contract
Agent shall not be liable for any covenant made by or on behalf of a Holder), hereby covenant to
the Collateral Agent that for so long as the Collateral remains subject to the Pledge:

     (a) neither the Purchase Contract Agent nor such Holder will create or purport
to create or allow to subsist any Encumbrance over the Collateral or any part of it;
and

     (b) neither the Purchase Contract Agent nor such Holder will sell or otherwise
dispose (or attempt to dispose) of the Collateral or any part of it except for the
beneficial interest therein, subject to the Pledge hereunder, transferred in
connection with the Transfer of the Equity Units.

ARTICLE IX

THE COLLATERAL AGENT, THE CUSTODIAL

AGENT AND THE SECURITIES

INTERMEDIARY

     It is hereby agreed as follows:

     Section 9.1 Appointment, Powers and Immunities.

     The Collateral Agent, the Custodial Agent or the Securities Intermediary shall act as agent
for the Company hereunder with such powers as are specifically vested in the Collateral Agent, the
Custodial Agent or the Securities Intermediary, as the case may be, by the terms of this Agreement.
The Collateral Agent, the Custodial Agent and Securities Intermediary shall:

     (a) have no duties or responsibilities except those expressly set forth in this
Agreement and no implied covenants, functions, responsibilities, duties, liabilities
or obligations shall be inferred from this Agreement against the Collateral Agent,
the Custodial Agent and the Securities Intermediary, nor shall the Collateral Agent,
the Custodial Agent and the Securities Intermediary be bound by the provisions of
any agreement by any party hereto beyond the specific terms hereof and none of the
Collateral Agent, the Custodial Agent or the Securities Intermediary shall have any
fiduciary relationship to the Holders of the Equity Units or any other Person;

     (b) not be responsible for any recitals contained in this Agreement, or in any
certificate or other document referred to or provided for in, or received by it
under, this Agreement, the Equity Units or the Purchase Contract Agreement (other
than any certificate or document it is required to deliver hereunder), or for the
value, validity, effectiveness, genuineness, enforceability or sufficiency of this
Agreement (other than as against the Collateral Agent, the Custodial Agent or the
Securities Intermediary, as the case may be), the Equity Units, any Collateral or
the Purchase Contract Agreement or any

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other document referred to or provided for herein or therein or for any failure
by the Company or any other Person (except the Collateral Agent, the Custodial Agent
or the Securities Intermediary, as the case may be) to perform any of its
obligations hereunder or thereunder or, except to the extent of the actions it is
required to take hereunder, for the validity, perfection, enforceability, priority
or maintenance of any security interest created hereunder;

     (c) not be required to initiate or conduct any litigation or collection
proceedings hereunder (except pursuant to directions furnished under Section 9.2,
subject to Section 9.8);

     (d) not be responsible for any action taken or omitted to be taken by it in
good faith hereunder or under any other document or instrument referred to or
provided for herein or in connection herewith or therewith, except for its own gross
negligence or willful misconduct; and

     (e) not be required to advise any party as to selling or retaining, or taking
or refraining from taking any action with respect to, any securities or other
property deposited hereunder.

     Subject to the foregoing, during the term of this Agreement, the Collateral Agent, the
Custodial Agent and the Securities Intermediary shall take all reasonable action in connection with
the safekeeping and preservation of the Collateral and use the same degree of care and skill in
such exercise as a prudent person would exercise or use under the circumstances in the conduct of
his or her affairs.

     The Collateral Agent, Securities Intermediary and Custodial Agent shall only be responsible
for transferring money, securities or other property in accordance with the terms herein to the
extent that such money, securities or other property is credited to the Collateral Account.

     No provision of this Agreement shall require the Collateral Agent, Custodial Agent or the
Securities Intermediary to expend or risk its own funds or otherwise incur any financial liability
in the performance of any of its duties or the exercise of any of its rights or powers hereunder.
In no event shall the Collateral Agent, Custodial Agent or the Securities Intermediary be liable
for any amount in excess of the Value of the Collateral.

     Section 9.2 Instructions of the Company.

     The Company shall have the right, by one or more written instruments executed and delivered to
the Collateral Agent, to direct the time, method and place of conducting any proceeding for the
realization of any right or remedy available to the Collateral Agent, or of exercising any power
conferred on the Collateral Agent, or to direct the taking or refraining from taking of any action
authorized by this Agreement; provided, however, that (i) such direction shall not conflict with
the provisions of any law or of this Agreement and (ii) the Collateral Agent shall be indemnified
to its satisfaction as provided herein. Nothing contained in this Section 9.2 shall impair the
right of the Collateral Agent in its discretion to take any action which it deems proper and which
is not inconsistent with such direction. None of the Collateral Agent, the Custodial Agent or the
Securities Intermediary has any obligation or responsibility to file any UCC financing or
continuation statements or to take any other actions to create, preserve or maintain the security
interest in the Collateral except as expressly set forth herein.

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     Section 9.3 Reliance by Collateral Agent, Custodial Agent and Securities Intermediary.

     Each of the Collateral Agent, the Custodial Agent and the Securities Intermediary shall be
entitled, in the absence of bad faith, to rely conclusively upon any certification, order,
judgment, opinion, notice or other written communication (including, without limitation, any
thereof by e-mail or similar electronic means, telecopy, telex or facsimile) believed by it to be
genuine and correct and to have been signed or sent by or on behalf of the proper Person or Persons
(without being required to determine the correctness of any fact stated therein) and consult with
and conclusively rely upon advice, opinions and statements of legal counsel and other experts
selected by the Collateral Agent, the Custodial Agent or the Securities Intermediary, as the case
may be. As to any matters not expressly provided for by this Agreement, the Collateral Agent, the
Custodial Agent and the Securities Intermediary shall in all cases be fully protected in acting, or
in refraining from acting, hereunder in accordance with instructions given by the Company in
accordance with this Agreement. In the event any instructions are given (other than in writing at
the time of the execution of this Agreement), whether in writing, by telecopier or otherwise, the
Collateral Agent, the Custodial Agent and the Securities Intermediary are authorized to seek
confirmation of such instructions by telephone call-back to the person or persons designated on
Schedule I, and the Collateral Agent, the Custodial Agent and the Securities Intermediary may rely
upon the confirmations of anyone purporting to be the person or persons so designated. The persons
and telephone numbers for call-backs may be changed only in writing actually received and
acknowledged by the Collateral Agent, the Custodial Agent and the Securities Intermediary.

     It is understood that the Collateral Agent, the Custodial Agent and the Securities
Intermediary in any funds transfer may rely solely upon any account numbers or similar identifying
number provided by the Company to identify (i) the beneficiary, (ii) the beneficiary’s bank or
(iii) an intermediary bank. The Collateral Agent, the Custodial Agent and the Securities
Intermediary may apply any of the deposited funds for any payment order it executes using any such
identifying number, even where its use may result in a Person other than the beneficiary being
paid, or the transfer of funds to a bank other than the beneficiary’s bank, or an intermediary
bank, designated by the Company; provided, however, that payment is made to the account as
specified by the Company.

     In each case that the Collateral Agent, Custodial Agent or Securities Intermediary may or is
required hereunder to take any action, including without limitation to make any determination or
judgment, to give consents, to exercise rights, powers or remedies, to release or sell Collateral
or otherwise to act hereunder, the Collateral Agent, Custodial Agent or Securities Intermediary may
seek direction from the Company. The Collateral Agent, Custodial Agent or Securities Intermediary
shall not be liable with respect to any action taken or omitted to be taken by it in good faith in
accordance with an Issuer Order. Unless direction is otherwise expressly provided herein, if the
Collateral Agent, Custodial Agent or Securities Intermediary shall request direction from the
Company with respect to any action, the Collateral Agent, Custodial Agent or the Securities
Intermediary shall be entitled to refrain from such action unless and until such agent shall have
received written direction from the Company, and the agent shall not incur liability to any Person
by reason of so refraining.

     Section 9.4 Certain Rights.

     (a) Whenever in the administration of the provisions of this Agreement the Collateral Agent,
the Custodial Agent or the Securities Intermediary shall deem it necessary or desirable that a
matter be proved or established prior to taking or suffering any action to be taken hereunder, such
matter (unless other evidence in respect thereof be herein specifically prescribed) may, in the
absence of gross negligence or bad faith on the part of the Collateral Agent, the Custodial Agent
or the Securities

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Intermediary, be deemed to be conclusively proved and established by an Issuer Order, and
delivered to the Collateral Agent, the Custodial Agent or the Securities Intermediary and such
Issuer Order, in the absence of gross negligence or bad faith on the part of the Collateral Agent,
the Custodial Agent or the Securities Intermediary, shall be full warrant to the Collateral Agent,
the Custodial Agent or the Securities Intermediary for any action taken, suffered or omitted by it
under the provisions of this Agreement.

     (b) The Collateral Agent, the Custodial Agent or the Securities Intermediary shall not be
bound to make any investigation into the facts or matters stated in any resolution, certificate,
statement, instrument, opinion, report, notice, request, consent, entitlement order, approval or
other paper or document, but may make such further investigation as it may deem necessary,
desirable or appropriate.

     Section 9.5 Merger, Conversion, Consolidation or Succession to Business.

     Any Person into which the Collateral Agent, the Custodial Agent or the Securities Intermediary
may be merged or converted or with which it may be consolidated, or any Person resulting from any
merger, conversion or consolidation to which the Collateral Agent, the Custodial Agent or the
Securities Intermediary shall be a party, or any Person succeeding to all or substantially all of
the corporate trust business of the Collateral Agent, the Custodial Agent or the Securities
Intermediary shall be the successor of the Collateral Agent, the Custodial Agent or the Securities
Intermediary hereunder without the execution or filing of any paper with any party hereto or any
further act on the part of any of the parties hereto except where an instrument of transfer or
assignment is required by law to effect such succession.

     Section 9.6 Rights in Other Capacities.

     The Collateral Agent, the Custodial Agent and the Securities Intermediary and their affiliates
may (without having to account therefore to the Company) accept deposits from, lend money to, make
their investments in and generally engage in any kind of banking, trust or other business with the
Purchase Contract Agent, any other Person interested herein and any Holder of Equity Units (and any
of their respective subsidiaries or affiliates) as if it were not acting as the Collateral Agent,
the Custodial Agent or the Securities Intermediary, as the case may be, and the Collateral Agent,
the Custodial Agent, the Securities Intermediary and their affiliates may accept fees and other
consideration from the Purchase Contract Agent and any Holder of Equity Units without having to
account for the same to the Company; provided that each of the Securities Intermediary, the
Custodial Agent and the Collateral Agent covenants and agrees with the Company that it shall not
accept, receive or permit there to be created in favor of itself and shall take no affirmative
action to permit there to be created in favor of any other Person, any Encumbrance in or upon the
Collateral.

	 	 	Section 9.7 Non-reliance on Collateral Agent, the Custodial Agent and Securities
Intermediary.

     None of the Securities Intermediary, the Custodial Agent or the Collateral Agent shall be
required to keep itself informed as to the performance or observance by the Purchase Contract Agent
or any Holder of Equity Units of this Agreement, the Purchase Contract Agreement, the Equity Units
or any other document referred to or provided for herein or therein or to inspect the properties or
books of the Purchase Contract Agent or any Holder of Equity Units. None of the Collateral Agent,
the Custodial Agent or the Securities Intermediary shall have any duty or responsibility to provide
the Company with any credit or other information concerning the affairs, financial condition or
business of the Purchase Contract Agent or any Holder of Equity Units (or any of their respective
affiliates) that may come into the

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possession of the Collateral Agent, the Custodial Agent or the Securities Intermediary or any
of their respective affiliates.

     Section 9.8 Compensation and Indemnity.

     The Company agrees to:

     (a) pay the Collateral Agent, the Custodial Agent and the Securities
Intermediary from time to time such compensation as shall be agreed in writing
between the Company and the Collateral Agent, the Custodial Agent or the Securities
Intermediary, as the case may be, for all services rendered by them hereunder;

     (b) indemnify and hold harmless the Collateral Agent, the Custodial Agent, the
Securities Intermediary and each of their respective directors, officers, agents and
employees (collectively, the “Indemnitees”), from and against any and all claims,
actions, suits, liabilities, losses, damages, fines, penalties and expenses
(including reasonable fees and expenses of counsel) and taxes (other than those
based upon, determined by or measured by the income of the Collateral Agent, the
Custodial Agent and Securities Intermediary) of any kind and nature, whatsoever
(collectively, “Losses” and individually, a “Loss”) that may be imposed on, incurred
by, or asserted against, the Indemnitees or any of them for following any
instructions or other directions upon which either the Collateral Agent, the
Custodial Agent or the Securities Intermediary is entitled to rely pursuant to the
terms of this Agreement, provided that the Collateral Agent, the Custodial Agent or
the Securities Intermediary has not acted with gross negligence or engaged in
willful misconduct with respect to the specific Loss against which indemnification
is sought; and

     (c) in addition to and not in limitation of paragraph (b) immediately above,
indemnify and hold the Indemnitees and each of them harmless from and against any
and all Losses that may be imposed on, incurred by or asserted against, the
Indemnitees or any of them in connection with or arising out of the Collateral
Agent’s, the Custodial Agent’s or the Securities Intermediary’s acceptance or
performance of its powers and duties under this Agreement; provided that the
Collateral Agent, the Custodial Agent or the Securities Intermediary has not acted
with gross negligence or engaged in willful misconduct with respect to the specific
Loss against which indemnification is sought.

     The provisions of this Section and Section 11.7 shall survive the resignation or removal of
the Collateral Agent, Custodial Agent or Securities Intermediary and the termination of this
Agreement.

     Section 9.9 Failure to Act.

     In the event of any ambiguity in the provisions of this Agreement or any dispute between or
conflicting claims by or among the parties hereto or any other Person with respect to any funds or
property deposited hereunder, then at its sole option, each of the Collateral Agent, the Custodial
Agent and the Securities Intermediary shall be entitled, after prompt notice to the Company and the
Purchase Contract Agent, to refuse to comply with any and all claims, demands or instructions with
respect to such property or funds so long as such dispute or conflict shall continue, and the
Collateral Agent, the Custodial Agent and the Securities Intermediary shall not be or become liable
in any way to any of the parties hereto for its failure or refusal to comply with such conflicting
claims, demands or instructions.

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The Collateral Agent, the Custodial Agent and the Securities Intermediary shall be entitled to
refuse to act until either:

     (a) such conflicting or adverse claims or demands shall have been finally
determined by a court of competent jurisdiction or settled by agreement between the
conflicting parties as evidenced in a writing satisfactory to the Collateral Agent,
the Custodial Agent or the Securities Intermediary; or

     (b) the Collateral Agent, the Custodial Agent or the Securities Intermediary
shall have received security or an indemnity satisfactory to it sufficient to save
it harmless from and against any and all loss, liability or reasonable out-of-pocket
expense which it may incur by reason of its acting.

     Notwithstanding anything contained herein to the contrary, none of the Collateral Agent, the
Custodial Agent or the Securities Intermediary shall be required to take any action that is
contrary to law or to the terms of this Agreement, or which would in its opinion subject it or any
of its officers, employees or directors to any unindemnified liability.

	 	 	Section 9.10 Resignation of Collateral Agent, the Custodial Agent and Securities
Intermediary.

     Subject to the appointment and acceptance of a successor Collateral Agent, Custodial Agent or
Securities Intermediary as provided below:

     (a) the Collateral Agent, the Custodial Agent or the Securities Intermediary
may resign at any time by giving not less than 90 days’ notice thereof to the
Company and the Purchase Contract Agent as attorney-in-fact for the Holders of
Equity Units;

     (b) the Collateral Agent, the Custodial Agent or the Securities Intermediary
may be removed at any time by the Company; and

     (c) the Collateral Agent, the Custodial Agent or the Securities Intermediary
fails to perform any of its material obligations hereunder in any material respect
for a period of not less than 20 days after receiving written notice of such failure
by the Purchase Contract Agent, and such failure shall be continuing, the Collateral
Agent, the Custodial Agent and the Securities Intermediary may be removed by the
Purchase Contract Agent, acting at the direction of the Holders of a majority in
Stated Amount of the Equity Units.

     The Purchase Contract Agent shall promptly notify the Company of any removal of the Collateral
Agent, the Custodial Agent or the Securities Intermediary pursuant to clause (c) of this Section
9.10. Upon any such resignation or removal, the Company shall have the right to appoint a
successor Collateral Agent, Custodial Agent or Securities Intermediary, as the case may be. If no
successor Collateral Agent, Custodial Agent or Securities Intermediary shall have been so appointed
and shall have accepted such appointment within 90 days after the retiring Collateral Agent’s,
Custodial Agent’s or Securities Intermediary’s giving of notice of resignation or within 30 days of
the Company’s or the Purchase Contract Agent’s giving notice of such removal, then the retiring or
removed Collateral Agent, Custodial Agent or Securities Intermediary may petition any court of
competent jurisdiction, at the expense of the Company, for the appointment of a successor
Collateral Agent, Custodial Agent or Securities Intermediary. The Collateral Agent, the Custodial
Agent and the Securities Intermediary shall each be a

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bank, trust company or national banking association with a combined capital and surplus of at
least $50,000,000. Upon the acceptance of any appointment as Collateral Agent, Custodial Agent or
Securities Intermediary hereunder by a successor Collateral Agent, Custodial Agent or Securities
Intermediary, as the case may be, such successor Collateral Agent, Custodial Agent or Securities
Intermediary, as the case may be, shall thereupon succeed to and become vested with all the rights,
powers, privileges and duties of the retiring Collateral Agent, Custodial Agent or Securities
Intermediary, as the case may be, and the retiring Collateral Agent, Custodial Agent or Securities
Intermediary, as the case may be, shall take all appropriate action, subject to payment of any
amounts then due and payable to it hereunder, to transfer any money and property held by it
hereunder (including the Collateral) to such successor. The retiring Collateral Agent, Custodial
Agent or Securities Intermediary shall, upon such succession, be discharged from its duties and
obligations as Collateral Agent, Custodial Agent or Securities Intermediary hereunder. After any
retiring Collateral Agent’s, Custodial Agent’s or Securities Intermediary’s resignation hereunder
as Collateral Agent, Custodial Agent or Securities Intermediary, the provisions of this Article IX
shall continue in effect for its benefit in respect of any actions taken or omitted to be taken by
it while it was acting as the Collateral Agent, Custodial Agent or Securities Intermediary. Any
resignation or removal of the Collateral Agent, Custodial Agent or Securities Intermediary
hereunder, at a time when such Person is acting as the Collateral Agent, Custodial Agent or
Securities Intermediary, shall be deemed for all purposes of this Agreement as the simultaneous
resignation or removal of the Collateral Agent, Securities Intermediary or Custodial Agent, as the
case may be.

     Section 9.11 Right to Appoint Agent or Advisor.

     The Collateral Agent, Custodial Agent and Securities Intermediary each shall have the right to
appoint agents or advisors in connection with any of their respective duties hereunder, and the
Collateral Agent, Custodial Agent and Securities Intermediary shall not be liable for any action
taken or omitted by, or in reliance upon the advice of, such agents or advisors selected in good
faith. The appointment of agents pursuant to Section 9.11 shall be subject to prior written consent
of the Company, which consent shall not be unreasonably withheld.

     Section 9.12 Survival.

     The provisions of this Article IX shall survive termination of this Agreement and the
resignation or removal of the Collateral Agent, the Custodial Agent or the Securities Intermediary.

     Section 9.13 Exculpation.

     Anything contained in this Agreement to the contrary notwithstanding, in no event shall the
Collateral Agent, the Custodial Agent or the Securities Intermediary or their officers, directors,
employees or agents be liable under this Agreement to any third party for indirect, special,
punitive, or consequential loss or damage of any kind whatsoever, including, but not limited to,
lost profits, whether or not the likelihood of such loss or damage was known to the Collateral
Agent, the Custodial Agent or the Securities Intermediary, or any of them incurred without any act
or deed that is found to be attributable to gross negligence or willful misconduct on the part of
the Collateral Agent, the Custodial Agent or the Securities Intermediary.

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ARTICLE X

AMENDMENT

     Section 10.1 Amendment without Consent of Holders.

     Without the consent of any Holders, the Company, when duly authorized by a Board Resolution,
the Collateral Agent, the Custodial Agent, the Securities Intermediary and the Purchase Contract
Agent, at any time and from time to time, may amend this Agreement, in form satisfactory to the
Company, the Collateral Agent, the Custodial Agent, the Securities Intermediary and the Purchase
Contract Agent, to:

     (a) evidence the succession of another Person to the Company and the assumption
by any such successor of the covenants of the Company;

     (b) evidence and provide for the acceptance of appointment hereunder by a
successor Collateral Agent, Custodial Agent, Securities Intermediary or Purchase
Contract Agent;

     (c) add to the covenants of the Company for the benefit of the Holders, or
surrender any right or power herein conferred upon the Company, provided that such
covenants or such surrender do not adversely affect the validity, perfection or
priority of the Pledge created hereunder;

     (d) cure any ambiguity (or formal defect) or correct or supplement any
provisions herein which may be inconsistent with another such provisions herein; or

     (e) conform this Agreement to any amendment or supplement to, or waiver with
respect to, the Purchase Contract Agreement, it being understood that any such
amendment, supplement or waiver will not require approval under this Agreement;

     (f) make any other provisions with respect to such matters or questions arising
under this Agreement, provided that such action shall not adversely affect the
interests of the Holders in any material respect.

     Section 10.2 Amendment with Consent of Holders.

     With the consent of the Holders of not less than a majority in Stated Amount of the Equity
Units at the time Outstanding, including without limitation the consent of the Holders obtained in
connection with a tender or an exchange offer, by Act of such Holders delivered to the Company, the
Purchase Contract Agent, the Custodial Agent, the Securities Intermediary and the Collateral Agent,
as the case may be, the Company, when duly authorized by a Board Resolution, the Purchase Contract
Agent, the Collateral Agent, the Securities Intermediary and the Collateral Agent may amend this
Agreement for the purpose of modifying in any manner the provisions of this Agreement or the rights
of the Holders in respect of the Equity Units; provided, however, that no such supplemental
agreement shall, without the unanimous consent of the Holders of each Outstanding Equity Units:

     (a) change the amount or type of Collateral underlying the Equity Units (except
for the rights of Holders of Corporate Units to substitute the Treasury Securities
for the Pledged Debentures or the rights of Holders of Treasury Units to substitute
Debentures, as applicable, for the Pledged Treasury Securities or the pledging of
the

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Pledged Treasury Portfolio as Collateral), impair the right of the Holder of
any Equity Units to receive distributions on the underlying Collateral or otherwise
materially and adversely affect the Holder’s rights in or to such Collateral;

     (b) reduce the percentage of Equity Units the consent of whose Holders is
required for the modification or amendment of the provisions of this Agreement;

provided that if any amendment or proposal referred to above would adversely affect only the
Corporate Units or only the Treasury Units, then only the affected class of Holders as of the
record date for the Holders entitled to vote thereon will be entitled to vote on such amendment or
proposal, and such amendment or proposal shall not be effective except with the consent of Holders
of not less than a majority in the Stated Amount of such class; provided, further, that the
unanimous consent of the Holders of each Outstanding Equity Unit of such class affected thereby
shall be required to approve any amendment or proposal specified in clauses (a) through (b) above.

     It shall not be necessary for any Act of Holders under this Section to approve the particular
form of any proposed amendment, but it shall be sufficient if such Act shall approve the substance
thereof. Section 1.04 of the Purchase Contract Agreement shall apply to any Act of the Holders
under this Agreement.

     Section 10.3 Execution of Amendments.

     In executing any amendment permitted by this Article, the Collateral Agent, the Custodial
Agent, the Securities Intermediary and the Purchase Contract Agent shall be entitled to receive and
(subject to Section 7.01 of the Purchase Contract Agreement with respect to the Purchase Contract
Agent) shall be fully authorized and protected in relying upon an Officers’ Certificate stating
that the execution of such amendment is authorized or permitted by this Agreement and that all
conditions precedent, if any, to the execution and delivery of such amendment have been satisfied.
The Collateral Agent, Custodial Agent, Securities Intermediary and Purchase Contract Agent may, but
shall not be obligated to, enter into any such amendment which affects their own respective rights,
duties or immunities under this Agreement or otherwise. Except as provided by the prior sentence,
the Collateral Agent, Custodial Agent and Securities Intermediary shall enter into all other
supplemental agreements.

     Section 10.4 Effect of Amendments.

     Upon the execution of any amendment under this Article, this Agreement shall be modified in
accordance therewith, and such amendment shall form a part of this Agreement for all purposes; and
every Holder of Certificates theretofore or thereafter authenticated, executed on behalf of the
Holders and delivered under the Purchase Contract Agreement shall be bound thereby.

     Section 10.5 Reference of Amendments.

     Certificates authenticated, executed on behalf of the Holders and delivered after the
execution of any amendment pursuant to this Section may, and shall, if required by the Collateral
Agent or the Purchase Contract Agent, bear a notation as to any matter provided for in such
amendment. If the Company shall so determine, new Certificates so modified as to conform, to any
such amendment may be prepared and executed by the Company and authenticated, executed on behalf of
the Holders and delivered by the Purchase Contract Agent in accordance with the Purchase Contract
Agreement in exchange for Certificates representing Outstanding Equity Units.

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ARTICLE XI

MISCELLANEOUS

     Section 11.1 No Waiver.

     No failure on the part of the Company, the Collateral Agent, the Custodial Agent, the
Securities Intermediary or any of their respective agents to exercise, and no course of dealing
with respect to, and no delay in exercising, any right, power or remedy hereunder shall operate as
a waiver thereof; nor shall any single or partial exercise by the Company, the Collateral Agent,
the Custodial Agent, the Securities Intermediary or any of their respective agents of any right,
power or remedy hereunder preclude any other or further exercise thereof or the exercise of any
other right, power or remedy. The remedies herein are cumulative and are not exclusive of any
remedies provided by law.

     Section 11.2 Governing Law; Submission to Jurisdiction.

     THIS AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE
OF NEW YORK. The Company, the Collateral Agent, the Custodial Agent, the Securities Intermediary
and the Holders from time to time of the Equity Units, acting through the Purchase Contract Agent
as their attorney-in-fact, hereby submit to the exclusive jurisdiction of the United States
District Court for the Southern District of New York and of any New York state court sitting in New
York City for the purposes of all actions, suits or proceedings arising out of or relating to this
Agreement or the transactions contemplated hereby. The Company, the Collateral Agent, the Custodial
Agent, the Securities Intermediary and the Holders from time to time of the Equity Units, acting
through the Purchase Contract Agent as their attorney-in-fact, irrevocably waive, to the fullest
extent permitted by applicable law, any objection that they may now or hereafter have to the laying
of the venue of any such proceeding brought in such a court and any claim that any such proceeding
brought in such a court has been brought in an inconvenient forum.

     Section 11.3 Notices.

     All notices, requests, consents and other communications provided for herein (including,
without limitation, any modifications of, or waivers or consents under, this Agreement) shall be
given or made in writing delivered to the intended recipient at the “Address For Notices” specified
below its name on the signature pages hereof or, as to any party, at such other address as shall be
designated by such party in a notice to the other parties. Except as otherwise provided in this
Agreement, all such communications shall be deemed to have been duly given when or personally
delivered or, in the case of a mailed notice, upon receipt, in each case given or addressed as
aforesaid. All notices by mail shall be delivered by first class mail, for which a return receipt
is requested.

     Section 11.4 Successors and Assigns.

     This Agreement shall be binding upon and inure to the benefit of the respective successors and
assigns of the Company, the Collateral Agent, the Custodial Agent, the Securities Intermediary and
the Purchase Contract Agent, and the Holders from time to time of the Equity Units, by their
acceptance of the same, shall be deemed to have agreed to be bound by the provisions hereof and to
have ratified the agreements of, and the grant of the Pledge hereunder by, the Purchase Contract
Agent.

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     Section 11.5 Counterparts.

     This Agreement may be executed in any number of counterparts, all of which taken together
shall constitute one and the same instrument, and any of the parties hereto may execute this
Agreement by signing any such counterpart.

     Section 11.6 Severability.

     If any provision hereof is invalid and unenforceable in any jurisdiction, then, to the fullest
extent permitted by law, (i) the other provisions hereof shall remain in full force and effect in
such jurisdiction and shall be liberally construed in order to carry out the intentions of the
parties hereto as nearly as may be possible and (ii) the invalidity or unenforceability of any
provision hereof in any jurisdiction shall not affect the validity or enforceability of such
provision in any other jurisdiction.

     Section 11.7 Expenses, Etc.

     The Company agrees to reimburse the Collateral Agent, the Custodial Agent and the Securities
Intermediary for:

     (a) all reasonable costs and expenses of the Collateral Agent, the Custodial
Agent and the Securities Intermediary (including, without limitation, the reasonable
fees and expenses of counsel to the Collateral Agent, the Custodial Agent and the
Securities Intermediary), in connection with (i) the negotiation, preparation,
execution and delivery or performance of this Agreement and (ii) any modification,
supplement or waiver of any of the terms of this Agreement;

     (b) all reasonable costs and expenses of the Collateral Agent, the Custodial
Agent and the Securities Intermediary (including, without limitation, reasonable
fees and expenses of counsel) in connection with (i) any enforcement or proceedings
resulting or incurred in connection with causing any Holder of Equity Units to
satisfy its obligations under the Stock Purchase Contracts forming a part of the
Equity Units and (ii) the enforcement of this Section 11.7;

     (c) all transfer, stamp, documentary or other similar taxes, assessments or
charges levied by any governmental or revenue authority in respect of this Agreement
or any other document referred to herein and all costs, expenses, taxes, assessments
and other charges incurred in connection with any filing, registration, recording or
perfection of any security interest contemplated hereby;

     (d) all reasonable fees and expenses of any agent or advisor appointed by the
Collateral Agent and consented to by the Company under Section 9.11; and

     (e) any other out-of-pocket costs and expenses reasonably incurred by the
Collateral Agent, the Custodial Agent and the Securities Intermediary in connection
with the performance of their duties and the exercise of their powers hereunder.

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     Section 11.8 Security Interest Absolute.

     All rights of the Collateral Agent and security interests hereunder, and all obligations of
the Holders from time to time hereunder, shall, to the fullest extent permitted by law, be absolute
and unconditional irrespective of:

     (a) any lack of validity or enforceability of any provision of the Stock
Purchase Contracts or the Equity Units or any other agreement or instrument relating
thereto;

     (b) any change in the time, manner or place of payment of, or any other term
of, or any increase in the amount of, all or any of the obligations of Holders of
the Equity Units under the related Stock Purchase Contracts, or any other amendment
or waiver of any term of, or any consent to any departure from any requirement of,
the Purchase Contract Agreement or any Stock Purchase Contract or any other
agreement or instrument relating thereto; or

     (c) any other circumstance which might otherwise constitute a defense available
to, or discharge of, a borrower, a guarantor or a pledgor.

     Section 11.9 Notice of Termination Event.

     Upon the occurrence of a Termination Event, the Company shall deliver written notice of such
Termination Event to the Purchase Contract Agent, the Collateral Agent, the Custodial Agent and the
Securities Intermediary.

     Section 11.10 Rights of the Purchase Contract Agent.

     In connection with its execution and performance hereunder the Purchase Contract Agent is
entitled to all rights, privileges, protections, immunities, benefits and indemnities provided to
it under the Purchase Contract Agreement.

[SIGNATURES ON THE FOLLOWING PAGE]

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     In Witness Whereof, the parties hereto have caused this Agreement to be duly executed
as of the day and year first above written.

	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 
	AMERICAN INTERNATIONAL GROUP, INC.	 	The Bank of New York, as Purchase Contract Agent and as attorney-in- fact of the Holders from time
to time of the Equity Units	 	 
	 
	 	 	 	 	 	 	 	 
	By:

	 	/s/ Robert A. Gender	 	By:	 	/s/ Sherma Thomas	 	 
	 

	 	 
	 	 	 	 	 	 
	Name:

	 	Robert A. Gender	 	Name:	 	Sherma Thomas	 	 
	 

	 	 
	 	 	 	 	 	 
	Title:
	 	Vice President and Treasurer	 	Title:	 	Assistant Treasurer	 	 
	 

	 	 
	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	Address for Notices:	 	Address for Notices:	 	 
	 
	 	 	 	 	 	 	 	 
	American International Group, Inc.	 	The Bank of New York	 	 
	70 Pine Street,	 	101 Barclay Street - 8W	 	 
	New York, NY 10270	 	New York, NY 10286	 	 
	Attention:	 	  	 	Telephone: (212) 815-5283	 	 
	 	 	 	 	 	 	 
	 	 	 	 	Attention: Corporate Finance Group	 	 
	 
	 	 	 	 	 	 	 	 
	Wilmington Trust Company, as Collateral 

Agent, Custodial Agent and Securities Intermediary	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	By:
	 	/s/ David A. Vanasky, Jr.	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 
	Name:
	 	David A. Vanasky, Jr.	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 
	Title:
	 	Vice President	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	Address for Notices	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	Wilmington Trust Company	 	 	 	 	 	 
	Rodney Square North	 	 	 	 	 	 
	1100 North Market Street	 	 	 	 	 	 
	Wilmington, Delaware 19890-1600	 	 	 	 	 	 
	Telephone: (302) 636-6000	 	 	 	 	 	 
	Attention: Corporate Trust Administration	 	 	 	 	 	 

Pledge Agreement

 

 

EXHIBIT A

INSTRUCTION

FROM PURCHASE CONTRACT AGENT

TO COLLATERAL AGENT

(Creation of Treasury Units)

Wilmington Trust Company,

as Collateral Agent

Rodney Square North

1100 North Market Street

Wilmington, Delaware 19890-1600

Telephone: (302) 636-6000/(302) 636-6019

Attention: Corporate Trust Administration/David Vanaskey

     Re:                      Corporate Units of American International Group, Inc. (the “Company”)

The securities account of Wilmington Trust Company, as Collateral Agent, maintained
by the Securities Intermediary and designated “Wilmington Trust Company, as
Collateral Agent of American International Group, Inc., as pledgee of The Bank of
New York, as the Purchase Contract Agent on behalf of and as attorney-in-fact for
the Holders” (the “Collateral Account”)

          Please refer to the Pledge Agreement, dated as of May 16, 2008 (the “Pledge Agreement”), among
the Company, you, as Collateral Agent, Custodial Agent and Securities Intermediary and the
undersigned, as Purchase Contract Agent and as attorney-in-fact for the holders of Corporate Units
from time to time. Capitalized terms used herein but not defined shall have the meanings set forth
in the Pledge Agreement.

          We hereby notify you in accordance with Section 5.2 of the Pledge Agreement that the holder of
securities named below (the “Holder”) has elected to substitute:

	 	1.	 	$                      aggregate principle amount at maturity of zero-coupon U.S.
Treasury securities (CUSIP No. 912820GC5) maturing on February 15, 2011 or security
entitlements with respect thereto;
	 
	 	2.	 	$                      aggregate principle amount at maturity of zero-coupon U.S.
Treasury securities (CUSIP No. 912820NA1) maturing on April 30, 2011 or security
entitlements with respect thereto; and
	 
	 	3.	 	$                      aggregate principle amount at maturity of zero-coupon U.S.
Treasury securities (CUSIP No. 912820NK9) maturing on July 31, 2011 or security
entitlements with respect thereto;

in exchange for equal principal amounts of applicable Pledged Debentures or security entitlements
with respect thereto, relating to                      Corporate Units and has delivered to the undersigned a
notice stating that the Holder has Transferred such Qualifying Treasury Securities or security
entitlements with respect thereto to the Securities Intermediary, for credit to the Collateral
Account.

A-1

 

          We hereby request that you instruct the Securities Intermediary, upon confirmation that such
Qualifying Treasury Securities or security entitlements thereto have been credited to the
Collateral Account, to release to the undersigned, on behalf of the Holder for distribution to such
Holder:

	 	1.	 	an equal $                     aggregate principal amount of Pledged Series B-1
Debentures;
	 
	 	2.	 	an equal $                     aggregate principal amount of Pledged Series B-2
Debentures; and
	 
	 	3.	 	an equal $                     aggregate principal amount of Pledged Series B-3
Debentures;

in accordance with Section 5.2 of the Pledge Agreement.

	 	 	 	 	 	 	 
	Date:	 	The Bank of New York, as	 	 
	 

	 	 	 	Purchase Contract Agent and as
attorney-in-fact of the Holders
from time to time of the Units	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 

Name:
	 	 
	 

	 	 	 	Title:	 	 

          Please print name and address of Holder electing to substitute Qualifying Treasury Securities
or security entitlements with respect thereto for the Pledged Debentures:

	 	 	 	 	 
	 

Name:

	 	 

Social Security or other Taxpayer
Identification Number, if any:
	 	 
	 
	 	 	 	 
	 

Address:

	 	 	 	 
	 
	 	 	 	 
	 

	 	 	 	 
	 
	 	 	 	 
	 

	 	 	 	 

A-2

 

EXHIBIT B

INSTRUCTION

FROM COLLATERAL AGENT

TO SECURITIES INTERMEDIARY

(Creation of Treasury Units)

Wilmington Trust Company,

as Securities Intermediary

Rodney Square North

1100 North Market Street

Wilmington, Delaware 19890-1600

Telephone: (302) 636-6000/(302) 636-6019

Attention: Corporate Trust Administration/David Vanaskey

     Re:                           Corporate Units of American International Group, Inc. (the “Company”)

The securities account of Wilmington Trust Company, as Collateral Agent, maintained
by the Securities Intermediary and designated “Wilmington Trust Company, as
Collateral Agent of American International Group, Inc., as pledgee of The Bank of
New York, as the Purchase Contract Agent on behalf of and as attorney-in-fact for
the Holders” (the “Collateral Account”)

          Please refer to the Pledge Agreement, dated as of May 16, 2008 (the “Pledge Agreement”), among
the Company, you, as Collateral Agent, as Securities Intermediary and as Custodial Agent and The
Bank of New York, as Purchase Contract Agent and as attorney-in-fact for the holders of Corporate
Units and Treasury Units from time to time. Capitalized terms used herein but not defined shall
have the meanings set forth in the Pledge Agreement.

          When you have confirmed that:

	 	1.	 	$                      aggregate principle amount at maturity of zero-coupon U.S.
Treasury securities (CUSIP No. 912820GC5) maturing on February 15, 2011 or security
entitlements with respect thereto;
	 
	 	2.	 	$                      aggregate principle amount at maturity of zero-coupon U.S.
Treasury securities (CUSIP No. 912820NA1) maturing on April 30, 2011 or security
entitlements with respect thereto; and
	 
	 	3.	 	$                      aggregate principle amount at maturity of zero-coupon U.S.
Treasury securities (CUSIP No. 912820NK9) maturing on July 31, 2011 or security
entitlements with respect thereto;

has been credited to the Collateral Account by or for the benefit of                     , as Holder of
Corporate Units (the “Holder”), and you are hereby instructed to release from the Collateral
Account:

	 	1.	 	an equal $                     aggregate principal amount of Pledged Series B-1
Debentures;
	 
	 	2.	 	an equal $                     aggregate principal amount of Pledged Series B-2
Debentures; and

B-1

 

	 	3.	 	an equal $                     aggregate principal amount of Pledged Series B-3
Debentures;

or security entitlements with respect thereto, relating to                      Corporate Units of the Holder
by Transfer to the Purchase Contract Agent on behalf of the Holder for distribution to such Holder.

	 	 	 	 	 	 	 
	Dated:                                        	 	Wilmington Trust Company,	 	 
	 	 	as Collateral Agent	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 

	 	 
	 

	 	 	 	Name:	 	 
	 

	 	 	 	Title:	 	 

Please print name and address of Holder:

	 	 	 
	 

	 	 
	Name:

	 	Social Security or other Taxpayer

Identification Number, if any:
	 
	 	 
	 

Address:
	 	 
	 
	 	 
	 

	 	 
	 
	 	 
	 

	 	 

B-2

 

EXHIBIT C

INSTRUCTION

FROM PURCHASE CONTRACT AGENT

TO COLLATERAL AGENT

(Recreation of Corporate Units)

Wilmington Trust Company,

as Collateral Agent

Rodney Square North

1100 North Market Street

Wilmington, Delaware 19890-1600

Telephone: (302) 636-6000/(302) 636-6019

Attention: Corporate Trust Administration/David Vanaskey

     Re:                      Treasury Units of American International Group, Inc. (the “Company”)

The securities account of Wilmington Trust Company, as Collateral Agent, maintained
by the Securities Intermediary and designated “Wilmington Trust Company, as
Collateral Agent of American International Group, Inc., as pledgee of The Bank of
New York, as the Purchase Contract Agent on behalf of and as attorney-in-fact for
the Holders” (the “Collateral Account”)

          Please refer to the Pledge Agreement, dated as of May 16, 2008 (the “Pledge Agreement”), among
the Company, you, as Collateral Agent, as Securities Intermediary, as Custodial Agent and the
undersigned, as Purchase Contract Agent and as attorney-in-fact for the holders of Treasury Units
from time to time. Capitalized terms used herein but not defined shall have the meanings set forth
in the Pledge Agreement.

          We hereby notify you in accordance with Section 5.3 of the Pledge Agreement that the holder of
securities named below (the “Holder”) has elected to substitute:

	 	1.	 	$                     aggregate principal amount of Pledged Series B-1 Debentures;
	 
	 	2.	 	$                     aggregate principal amount of Pledged Series B-2 Debentures;
and
	 
	 	3.	 	$                     aggregate principal amount of Pledged Series B-3 Debentures;

     or security entitlements with respect thereto, relating to                      Corporate Units of the Holder,
in exchange for equal principal amounts at maturity of the applicable Pledged Treasury Securities
relating to                      Treasury Units and has delivered to the undersigned a notice stating that
the Holder has Transferred such Debentures or security entitlements with respect thereto to the
Securities Intermediary, for credit to the Collateral Account.

          We hereby request that you instruct the Securities Intermediary, upon confirmation that such
Debentures or security entitlements with respect thereto have been credited to the Collateral
Account, to release to the undersigned:

	 	1.	 	an equal $                      aggregate principle amount at maturity of zero-coupon
U.S. Treasury securities (CUSIP No. 912820GC5) maturing on February 15, 2011 or
security entitlements with respect thereto;

C-1

 

	 	2.	 	an equal $                      aggregate principle amount at maturity of zero-coupon
U.S. Treasury securities (CUSIP No. 912820NA1) maturing on April 30, 2011 or security
entitlements with respect thereto; and
	 
	 	3.	 	an equal $                     aggregate principle amount at maturity of zero-coupon
U.S. Treasury securities (CUSIP No. 912820NK9) maturing on July 31, 2011 or security
entitlements with respect thereto;

related to                      Treasury Units of such Holder in accordance with Section 5.3 of the Pledge
Agreement.

	 	 	 	 	 	 	 
	Dated:                                         	 	The Bank of New York,	 	 
	 	 	    as Purchase Contract Agent	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 

	 	 
	 

	 	 	 	Name:	 	 
	 

	 	 	 	Title:	 	 

          Please print name and address of Holder electing to substitute Debentures or security
entitlements with respect thereto for Pledged Treasury Securities:

	 	 	 	 	 
	 

Name:

	 	 

Social Security or other Taxpayer
	 	 
	 

	 	Identification Number, if any:	 	 
	 
	 	 	 	 
	 

	 	 	 	 
	Address:
	 	 	 	 
	 
	 	 	 	 
	 

	 	 	 	 
	 
	 	 	 	 
	 

	 	 	 	 

C-2

 

EXHIBIT D

INSTRUCTION

FROM COLLATERAL AGENT

TO SECURITIES INTERMEDIARY

(Recreation of Corporate Units)

Wilmington Trust Company,

as Securities Intermediary

Rodney Square North

1100 North Market Street

Wilmington, Delaware 19890-1600

Telephone: (302) 636-6000/(302) 636-6019

Attention: Corporate Trust Administration/David Vanaskey

     Re:                                          Treasury Units of American International Group, Inc. (the “Company”)

The securities account of Wilmington Trust Company, as Collateral Agent, maintained
by the Securities Intermediary and designated “Wilmington Trust Company, as
Collateral Agent of American International Group, Inc., as pledgee of The Bank of
New York, as the Purchase Contract Agent on behalf of and as attorney-in-fact for
the Holders” (the “Collateral Account”)

          Please refer to the Pledge Agreement, dated as of May 16, 2008 (the “Pledge Agreement”), among
the Company, you, as Securities Intermediary, Custodial Agent and Collateral Agent, and The Bank of
New York, as Purchase Contract Agent and as attorney-in-fact for the holders of Corporate Units
from time to time. Capitalized terms used herein but not defined shall have the meanings set forth
in the Pledge Agreement.

          When you have confirmed that:

	 	1.	 	$                                         aggregate principal amount of Pledged Series B-1 Debentures;
	 
	 	2.	 	$                                         aggregate principal amount of Pledged Series B-2 Debentures;
and
	 
	 	3.	 	$                                         aggregate principal amount of Pledged Series B-3 Debentures;

or
security entitlements with respect thereto, relating to                                          Corporate Units, have been
credited to the Collateral Account by or for the benefit of                                         , as Holder of Treasury
Units (the “Holder”), and you are hereby instructed to release from the Collateral Account:

	 	1.	 	an equal $                                         aggregate principle amount at maturity of zero-coupon
U.S. Treasury securities (CUSIP No. 912820GC5) maturing on February 15, 2011 or
security entitlements with respect thereto;
	 
	 	2.	 	an equal $                                          aggregate principle amount at maturity of zero-coupon
U.S. Treasury securities (CUSIP No. 912820NA1) maturing on April 30, 2011 or security
entitlements with respect thereto; and

D-1 

 

	 	3.	 	an equal $
                                         aggregate principle amount at maturity of zero-coupon
U.S. Treasury securities (CUSIP No. 912820NK9) maturing on July 31, 2011 or security
entitlements with respect thereto;

by Transfer to the Purchase Contract Agent, on behalf of such Holder for distribution to such
Holder.

	 	 	 	 	 
	 	Wilmington Trust Company,

      as Collateral Agent

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	Dated:                                         	 	Title:  	 	 
	 

Please print name and address of Holder:

	 	 	 
	 

	 	 
	Name:

	 	Social Security or other Taxpayer

Identification Number, if any:
	 
	 	 
	 

Address:

	 	 
	 
	 	 
	 

	 	 
	 
	 	 
	 

	 	 

D-2 

 

EXHIBIT E

NOTICE OF SETTLEMENT WITH CASH FROM COLLATERAL

AGENT TO PURCHASE CONTRACT AGENT

(Settlement with Cash Amounts)

The Bank of New York,

as Purchase Contract Agent

101 Barclay Street, 8W

New York, NY 10286

Telephone No.: 212-815-5283

Attention: Corporate Finance Group

     Re:                                          Equity Units of American International Group, Inc. (the “Company”)
                                         Treasury Units of the Company

          Please refer to the Pledge Agreement, dated as of May 16, 2008 (the “Pledge Agreement”), by
and among you, the Company, and the undersigned, as Collateral Agent, Custodial Agent and
Securities Intermediary. Capitalized terms used herein but not defined shall have the meanings set
forth in the Pledge Agreement.

          In accordance with Section 5.5(d) of the Pledge Agreement, we hereby notify you that as of
11:00 a.m. (New York City time) on the Business Day immediately preceding the applicable Stock
Purchase Date, we have received (i) $                                          in immediately available funds paid in an
aggregate amount equal to the Purchase Price due to the Company on the Stock Purchase Date with
respect to                                          Corporate Units, and (ii) $                                           in immediately available funds
paid in an aggregate amount equal to the Purchase Price due to the Company on such Stock Purchase
Date with respect to                      Treasury Units.

	 	 	 	 	 
	 	Wilmington Trust Company,

as Collateral Agent

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	Dated:                                          	 	Title:  	 	 
	 

E-1 

 

EXHIBIT F

INSTRUCTION TO CUSTODIAL AGENT REGARDING REMARKETING

Wilmington Trust Company,

as Collateral Agent, acting as Custodial Agent,

Rodney Square North

1100 North Market Street

Wilmington, Delaware 19890-1600

Telephone: (302) 636-6000/(302) 636-6019

Attention: Corporate Trust Administration/David Vanaskey

Re:  [5.67% Series B-1 Junior Subordinated Debentures]

[5.82% Series B-2 Junior Subordinated Debentures]

[5.89% Series B-3 Junior Subordinated Debentures]

(the “Debentures”) of American International Group, Inc. (the “Company”)

          The undersigned hereby notifies you in accordance with Section 7.4 of the Pledge Agreement,
dated as of May 16, 2008 (the “Pledge Agreement”), among the Company, you, as Collateral Agent,
Custodial Agent and Securities Intermediary and The Bank of New York, as the Purchase Contract
Agent and as attorney-in-fact for the holders of Corporate Units from time to time, that the
undersigned elects to deliver $
                                         aggregate principal amount of Debentures for
remarketing pursuant to Section 7.4 of the Pledge Agreement. The undersigned will, upon request of
the Remarketing Agent, execute and deliver any additional documents deemed by the Remarketing Agent
or by the Company to be necessary or desirable to complete the sale, assignment and transfer of the
Debentures tendered hereby. Capitalized terms used herein but not defined shall have the meaning,
set forth in the Pledge Agreement.

          The undersigned hereby instructs you to deliver such Debentures to or upon the order of the
Remarketing Agent against payment of the Proceeds of such remarketing from the Remarketing Agent,
and to deliver such Proceeds to the undersigned in accordance with the instructions indicated
herein under “A. Payment Instructions.” The undersigned hereby instructs you, in the event of a
Failed Remarketing, to deliver such Separate Debentures to the person(s) and the address(es)
indicated herein under “B. Delivery Instructions.”

          With this notice, the undersigned hereby (i) represents and warrants that the undersigned has
full power and authority to tender, sell, assign and transfer the Debentures tendered hereby and
that the undersigned is the record owner of any Debentures tendered herewith in physical form or a
participant in The Depository Trust Company (“DTC”) and the beneficial owner of any Debentures
tendered herewith by book-entry transfer to your account at DTC, (ii) agrees to be bound by the
terms and conditions of Section 7.4 of the Pledge Agreement and all other provisions regarding
Remarketing in the Purchase Contract Agreement and the Pledge Agreement (iii) acknowledges and
agrees that after the close of business on the second Business Day immediately preceding the
applicable Remarketing Period Start Date, such election shall become an irrevocable election to
have such Debentures remarketed in the Remarketing, and that the Debentures tendered herewith will
only be returned in the event of a Failed Remarketing.

F-1 

 

Date:                                         

	 	 	 	 	 
	 	 	 
	 	By:  	
 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 	 	Signature Guarantee:

	 

	 	 	 
	 

Name

	 	 
Social Security or other Taxpayer

Identification Number, if any
	

	 

	 	 
	 
	 	 
	 

Address

	 	 
	 
	 	 
	 

	 	 

F-2 

 

A. PAYMENT INSTRUCTIONS

Proceeds of the Remarketing should be paid by check in the name of the person(s) set forth below
and mailed to the address set forth below.

Name(s)

(Please Print)

Address

(Please Print)

(Zip Code)

(Tax Identification or Social Security Number)

B. DELIVERY INSTRUCTIONS

In the event of a Failed Remarketing, Debentures which are in the form of definitive certificates
should be delivered to the person(s) set forth below and mailed to the address set forth below.

Name(s)

(Please Print)

Address

(Please Print)

(Zip Code)

F-3 

 

(Tax Identification or Social Security Number)

In the event of a Failed Remarketing, Debentures which are in book-entry form should be credited to
the account at The Depository Trust Company set forth below.

                                                                                

DTC Account Number

Name of Account Party:                                         

F-4 

 

EXHIBIT
G

INSTRUCTION TO CUSTODIAL AGENT REGARDING

WITHDRAWAL FROM REMARKETING

Wilmington Trust Company,

as Custodial Agent

Rodney Square North

1100 North Market Street

Wilmington, Delaware 19890-1600

Telephone: (302) 636-6000/(302) 636-6019

Attention: Corporate Trust Administration/David Vanaskey

	 	 	 
	Re:

	 	[5.67% Series B-1 Junior Subordinated Debentures]
	 

	 	[5.82% Series B-2 Junior Subordinated Debentures]
	 

	 	[5.89% Series B-3 Junior Subordinated Debentures]
	 

	 	(the “Debentures”) of American International Group, Inc. (the “Company”)

          The undersigned hereby notifies you in accordance with Section 7.4 of the Pledge Agreement,
dated as of May 16, 2008 (the “Pledge Agreement”), among the Company and you, as Custodial Agent,
Collateral Agent and Securities Intermediary, and The Bank of New York, as Purchase Contract Agent
and as attorney-in-fact for the holders of Corporate Units from time to time, that the undersigned
elects to withdraw the
$                    
aggregate principal amount of Debentures delivered to the
Custodial Agent on
                    , 20___ for remarketing pursuant to Section 7.4 of the Pledge
Agreement. The undersigned hereby instructs you to return such Debentures to the undersigned in
accordance with the undersigned’s instructions. Capitalized terms used herein but not defined shall
have the meanings set forth in the Pledge Agreement.

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Date:
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	By:	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	Name:	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	Title:	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	Signature Guarantee:	 	 	 	 
	 

	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 
	Name
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	Social Security or other Taxpayer
	 	 
	 	 	 	 	 	 	Identification Number, if any	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 
	Address
	 	 	 	 	 	 	 	 	 	 	 	 	 	 

G -1

 

DELIVERY INSTRUCTIONS

Debentures which are in the form of definitive certificates should be delivered to the person(s)
set forth below and mailed to the address set forth below.

Name(s)

(Please Print)

Address

(Please Print)

(Zip Code)

(Tax Identification or Social Security Number)

Debentures which are in book-entry form should be credited to the account at The Depository Trust
Company set forth below.

	 	 	 	 	 
	 	 	 
	DTC Account Number
	 	 	 	 
	 
	 	 	 	 
	Name of Account Party:
	 	 	 	 
	 

	 	 	 	 

G -2

 

SCHEDULE I

CONTACT PERSONS FOR CONFIRMATION

	 	 	 
	 	 	 
	Person(s) in Any of The Following Titles in	 	 
	the Company	 	Address/Phone Number
	Treasurer or Secretary

	 	American International Group, Inc.
	 

	 	70 Pine Street,
	 

	 	New York, NY 10270
	 

	 	Tel: (212) 770-7000

S-1

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