Document:

exv10w8

Exhibit 10.8

Memorandum for Chris Bernhardt

Subject: Special Retention and Employment Compensation Terms

Chris,

As you and I have discussed, we want to reinforce our strong desire that you continue in a senior
role (Band B or above) with ITT, as President of an ITT operating unit or higher position, and hope
that you view this memorandum as an indication of the Company’s confidence and appreciation for
your contributions to ITT Defense and ITT Corporation overall.

As an additional incentive for you to remain with ITT Corporation through at least July 1, 2015 and
subject to executing this Memorandum and the attached Non Compete and Non Solicitation Agreement,
the Company agrees to make three incentive bonus payments above and beyond incentive awards you may
qualify for under the ITT Industries 1997 Annual Incentive Plan (amended and restated as of July
13, 2004) the (“Plan”). Specifically, the Company agrees to provide a bonus to increase by $250,000
any Annual Incentive Payment which is otherwise awarded and paid to you in each of March 2011,
March 2012 and March 2013 under the Plan. These bonus increases will be included in your total
bonus award for each performance year and will be pensionable. In the event you become disabled,
any outstanding incentive payments will be made according to the schedule above. In the event of
your death, no further incentive payments will be made in any year following the year of your
death.

In the event you voluntarily leave the Company or are terminated by ITT for cause, as defined below
prior to any of the bonus payments you forfeit any and all claims you have or may have to payments
not made prior to the date you terminate your employment, and you also forfeit any portion of any
bonus award that is not paid on the date you terminate your employment. In addition, you agree that
if you leave the Company voluntarily or are terminated for cause prior to July 1, 2015, you will,
within 30 days from the date you leave the Company repay to the Company any and all of the after
tax amounts of the following payments: the additional bonus payments made to you for the 2011,
2012,and 2013 performance year. In the event you are terminated for any reason, other

 

 

than cause, or are deemed to have been constructively terminated by virtue of
changes to your employment terms and conditions that meet the requirements of “Good
Reason” as defined in ITT’s Special Senior Executive Severance Pay Plan( SSESPP)
during the performance of the this agreement, the repayment obligation in the
previous sentence shall not apply.

Termination by ITT for cause shall be defined as (i) the Employee’s willfully
engaging in serious misconduct that is injurious to Employer, (ii) the Employee’s
conviction of, or entering a plea of guilty or nolo contendere (no contest) to, a
crime that constitutes a felony or any lesser crime of which fraud or dishonesty is
a material element (iii) the willful violation of any material provision of ITT’s
Code of Conduct or(iv) willful and continued failure of Employee to perform
substantially his duties for ITT Corporation. (other than such failure resulting
from Employee’s incapacity due to mental or physical illness).

Assumption of the Memorandum Agreement: ITT shall require, that, any
successor (by purchase, merger, consolidation, divestiture, liquidation,
reorganization, restructuring or otherwise) to all or a majority of the business
and/or assets of ITT, ITT Defense and/or ITT Electronic Systems, assume and agree
to perform this Memorandum Agreement in the same manner and to the extent that ITT
would be required to perform it if no such succession had taken place. Failure by
ITT to have the successor assume this Memorandum Agreement will trigger payment of
the remaining unpaid bonus payments on the day of succession. These payments shall
not be subject to the offset provisions of the SSESPP.

In consideration of your continued employment, the opportunity to receive the
payments as well as the actual payments described herein, you agree to the terms and
conditions of this Memorandum and of the Non Competition and Non Solicitation
agreement attached to this memorandum agreement and further agree to sign two copies
of this memorandum agreement and the Non Competition and Non Solicitation Agreement
and return one signed copy of each to me.

2

 

Chris, I believe this accurately summarizes the points we have discussed and agreed. I look
forward to continuing to work with you.

	 	 	 	 	 
	 	 	 
	 	/s/ Dave Melcher
 	 
	 	Dave Melcher	Dated as of August 11, 2010	 
	 	Senior Vice President and

President, Defense & Information Solutions 	 
	 
	 	 	 
	 	/s/ Christopher Bernhardt
 	 
	 	Christopher Bernhardt	Dated as of August 11, 2010	 
	 	President, Electronic Systems 	 
	 

Attachment

cc: J. Procopio

3

 

NON-COMPETITION AND NON-SOLICITATION AGREEMENT

This NON-COMPETITION AND NON-SOLICITATION AGREEMENT, (the “Agreement”) is dated
this 11th day of August 2010, between Chris Bernhardt (“Employee”),
individually, and ITT Corporation, an Indiana corporation, and its affiliates
(collectively “ITT”).

WHEREAS, Employee and ITT have entered into Special Retention and Compensation
Terms, and

WHEREAS, Employee and ITT recognize that Employee has valuable knowledge and
expertise which, if used to compete against portions of ITT, could have a
material adverse effect on the businesses of and by ITT;

WHEREAS, it is an inducement for, as well as a condition to, the consummation
of the Special Retention and Compensation Terms that Employee enter into this
Agreement.

NOW, THEREFORE, in consideration of the employment of Employee, the premises
and of the mutual covenants, agreements and understandings contained herein and
in the Special Retention and Compensation Terms, the receipt and adequacy of
which are hereby acknowledged, the parties hereto, intending to be bound, agree
as follows:

1. Covenants.

     (a) Non-Disclosure and Non-Use of Confidential Information.
Employee acknowledges that he is in possession of confidential, proprietary and
competitively sensitive information relating to the businesses that comprise
ITT’s Electronic Systems Value Center (“ITT ES”), including without limitation,
business and marketing plans, strategies, customer information, supplier
information, other information concerning the business’ products, promotions,
pricing, product development, manufacturing, financing, expansion plans,
business policies and practices, and other forms of information considered by
ITT to be confidential and in the nature of trade secrets (the “Confidential
Information”). Notwithstanding anything herein to the contrary, Confidential
Information shall not include any information which was in the public domain as
of the date of this Agreement or information which later becomes in the public
domain without breach by Employee of any of his obligations under this Section
1(a). Employee agrees that, during his employment with ITT and thereafter, he
will not use for himself or for others, or divulge to another, any trade
secrets or confidential know-how, information, or other Confidential
Information of ITT, which may become known to Employee during Employee’s
employment, whether before or after signing this Agreement, without the prior
written consent of ITT.

     (b) Non-Competition and Non-Solicitation Agreement. Employee
covenants and agrees that, subject to paragraph 1(d) below, during the term of
his employment and

 

 

for a period of one (1) year thereafter, regardless of the reason or method of
termination, Employee will not, unless acting on behalf of ITT and/or at its
request:

	 	(i)	 	perform any work, directly or
indirectly, alone or as a partner, joint venture
participant, officer, director, employee, consultant,
agent, independent contractor, advisor, representative
or security holder of any company or business, in the
business of researching, designing, manufacturing
and/or providing defense products and services to the
U.S. and other governments in competition with the
businesses of ITT ES including all legal entities
through which ITT ES conducts business. ITT and
Employee agree that the foregoing restriction shall
apply and be enforceable worldwide, and, in the case if
the Unites States, in each state. (For the avoidance of
doubt, the businesses deemed to be in competition with
the businesses of ITT ES for purposes of the
restrictions in this subsection 1(b)(i) are listed in
Attachment 1 and no other businesses.
	 
	 	(ii)	 	directly or indirectly, for Employee
or on behalf of any other person, partnership, company,
corporation or other entity, solicit or attempt to
solicit, for the purpose of engaging in competition with
ITT ES;

(1) any person or entity for whom Employee performed
services on behalf of ITT ES; or (2) any person or
entity who is or has been a customer of ITT ES within
the twenty four months immediately preceding
Employee’s termination or (3) any person or entity ITT
ES has targeted and contacted in the twelve (12)
months immediately preceding Employee’s termination
for the purpose of establishing a customer
relationship; or

	 	(iii)	 	directly or indirectly, for Employee or
any third party, solicit, induce, recruit or cause another
person then in the employ of ITT to terminate his or her
employment for the purpose of joining, associating or
becoming employed with any other business or activity,
except as a result of a general hiring announcement.

     (c) Notwithstanding the foregoing, ITT and Employee agree that Employee, or
Employee’s employer, may own in the aggregate not more than 5% of the
outstanding shares of any publicly held corporation which corporation owns any
of the businesses listed in Attachment 1, and is therefore deemed to compete
with ITT ES, and whose shares are listed for trading on a national exchange or
through the automatic quotation system of a registered securities association.

     (d) Notwithstanding anything else in this Agreement to the contrary, the
obligations of Employee under this Agreement shall terminate and this Agreement
shall be null and void and unenforceable if the Employee is continuously
actively employed by ITT through July 1, 2015. Moreover, nothing in this
Agreement shall prohibit Employee, after his termination of employment with ITT,
from engaging in conduct that is otherwise prohibited in subsection (b)(1) above
for a separately organized and managed business of a company or firm, that is a
distinctly separate and separated part of the company that competes directly
with ITT ES as described in Attachement 1.

2

 

     Enforcement and Remedies. Employee acknowledges and agrees that the covenants
contained in this Section are reasonable and necessary to protect the legitimate
business interests of ITT, and that ITT could suffer injury and harm in the
event of a breach by the Employee of any of the foregoing provisions of Section
1 (for purposes of injunctive relief only and not monetary damages, Employee
acknowledges that such injury may include irreparable injury),. Therefore,
Employee agrees that in the event of any such breach or threat of breach, ITT
shall be entitled to an immediate injunction and restraining order to prevent
such breach or threatened breach by Employee (including any and all persons
acting for or with him). In addition, ITT shall be entitled to institute and
prosecute proceedings at law or in equity with respect to such breach, and, if
successful, to recover such costs, expenses, and reasonable attorney’s fees as
may be incurred in connection with such proceedings. The parties further agree
that, to the extent ITT institutes and prosecutes proceedings at law or in
equity against Employee for an alleged breach, and such action is unsuccessful,
Employee is entitled to recover such costs, expenses, and reasonable attorneys’
fees as may be incurred in connection with such proceedings. The terms of this
Section 2 shall not be construed as an election of remedies nor prevent ITT from
pursuing any other available remedies for any breach or threatened breach
hereof, including, without limitation, the recovery of damages.

3. Severability. Whenever possible, each provision or portion of any provision
of this Agreement shall be interpreted in such a manner as to be effective and
valid under applicable law, but if any provision or portion of any provision of
this Agreement is held to be invalid, illegal or unenforceable in any respect
under any applicable law or rule, such invalidity, illegality or
unenforceability shall not affect any other provision or portion of any
provision, and this Agreement shall be reformed, construed, and enforced as if
such invalid, illegal or unenforceable provision or portion of any provision
had never been contained herein. If a final judicial determination is made by a
court having jurisdiction that the time or scope of any provision in this
Agreement is unreasonable or otherwise unenforceable, such provision shall not
be rendered void but shall be deemed amended to apply to the maximum extent the
court determines enforceable.

4. At-Will Employment. Employee understands that he is an at-will employee of
ITT and that either Employee or ITT can terminate the employment relationship at
any time for any reason. Employee further understands that this Agreement does
not change the status of this relationship.

5. Waiver of Breach. The waiver by a party of a breach of any provision of this
Agreement must be in writing and shall not operate or be construed as a waiver
of any subsequent breach, or as a waiver of any other provision of this
Agreement.

6. Governing Law; Jurisdiction and Venue. This Agreement shall be construed in
accordance with and governed by the laws of the State of New Jersey without
regard to its choice of law rules. ITT and Employee hereby irrevocably and
unconditionally submit to the exclusive jurisdiction of the state and federal
courts located in or covering the State of New Jersey, for any actions, suits,
or proceedings arising out of or relating to this Agreement. By his execution
hereof, Employee hereby consents and irrevocably submits to the in
personam jurisdiction of these courts, and agrees that any process
in any suit or proceeding commenced in such courts under this Agreement may be
served upon him personally, by certified or registered mail, return receipt
requested, or by Federal Express or other courier

3

 

service, with the same full force and effect as if personally served upon him in the county in
which the Employee has rendered services hereunder. Each of the parties waives any claim that any
such jurisdiction is not a convenient forum for any such suit or proceeding and any defense of lack
of in personam jurisdiction with respect thereto,

IN WITNESS WHEREOF, the parties hereto have caused this Non-Competition and Non-Solicitation
Agreement to be duly executed as of the date first written above.

	 	 	 	 	 	 
	 	ITT CORPORATION

 	 	
	 	BY: 	/s/ Dave Melcher 	 
	 	 	Dave Melcher 	 	
	 	 	SVP and President, ITT DIS 	 	
	 	
	 	CHRIS BERNHARDT

 	 	
	 	 	/s/ Chris Bernhardt 	8/11/10	 
	 	

4

 

Attachment 1

Raytheon’s Electronic Warfare Systems Division

Northrop Grumman’s Defensive Systems Division

Northrop Grumman’s Space Systems Division

BAE Electronic Warfare Division

Syracuse Research Corporation

Thales Radar Systems

IAP Worldwide Services

DynCorp

Cerberus

The restrictions applicable to Employee for the above listed businesses apply to
all legal entities through which each above listed corporation or division does
business and continue to apply to Employee with respect to the businesses and any
portions thereof in the event of name changes, business combinations, transfers,
sales, mergers, reorganization, divestitures or other organizational changes.

5exv4w1

Exhibit 4.1

Execution Version

XYLEM INC.,

ITT CORPORATION,

as Guarantor

and

UNION BANK, N.A., as Trustee

Indenture

Dated as of September 20, 2011

Providing for Issuance of Debt Securities

 

 

TABLE OF CONTENTS

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

 

 

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

 

 

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

 

 

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

 

 

     THIS INDENTURE, between Xylem Inc., an Indiana corporation (hereinafter called
the “Company”) having its principal office at 1133 Westchester Avenue, Suite 2000, White
Plains, New York 10604, ITT Corporation, an Indiana corporation, as guarantor (hereinafter
called “ITT” or the “Guarantor”), and Union Bank, N.A., a national banking association, as
trustee (hereinafter called the “Trustee”), is made and entered into as of this
20th day of September, 2011.

Recitals

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

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

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

Agreements of the Parties

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

ARTICLE 1

Definitions and Other Provisions of General Application

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

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

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

1

 

     (c) all accounting terms not otherwise defined herein have the meanings assigned to
them in accordance with generally accepted accounting principles and, except as otherwise
herein expressly provided, the term “generally accepted accounting principles” with
respect to any computation required or permitted hereunder shall mean such accounting
principles as are generally accepted in the United States of America at the date of such
computation; and

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

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

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

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

	 	 	“applicants” has the meaning specified in Section 7.02.

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

2

 

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

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

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

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

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

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

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

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

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

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

     “Consolidated Net Tangible Assets” means the total amount of assets (less applicable
depreciation, amortization, and other valuation reserves) of the
Company and its Restricted Subsidiaries, after deducting therefrom (i) all current
liabilities of the Company and its Restricted Subsidiaries (excluding any such

3

 

liabilities that are intercompany items) and (ii) all goodwill, trade names,
trademarks, patents, unamortized debt discount and expenses and other like
intangibles, all as set forth on the latest consolidated balance sheet of the Company
and its Restricted Subsidiaries prepared in accordance with United States generally
accepted accounting principles.

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

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

	 	 	“Covenant Defeasance” has the meaning specified in Section 4.03. 
	 
	 	 	“Debt”
means any indebtedness for borrowed money.
	 
	 	 	 “Defaulted Interest” has the
meaning specified in Section 3.07. 
	 
	 	 	“Defeasance” has the meaning specified
in Section 4.02.

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

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

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

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

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

     “Equivalent Government Securities” means, in relation to Securities denominated in
a currency other than U.S. dollars, securities of the government

4

 

that issued the currency in which such Securities are denominated or securities of
government agencies backed by the full faith and credit of such government.

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

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

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

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

     “Guarantor” means ITT Corporation, an Indiana corporation.

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

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

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

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

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

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

     “Lien” has the meaning specified in Section 10.07.

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

5

 

     “Obligations” has the meaning specified in Section 14.01.

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

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

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

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

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

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

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

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

In determining whether the Holders of the requisite principal amount of such Securities
Outstanding have given any request, demand, authorization, direction, notice, consent or
waiver hereunder, the principal amount of any Original Issue

6

 

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

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

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

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

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

     “Principal Property” means any single manufacturing or processing plant, office
building or warehouse owned or leased by the Company or a

7

 

Restricted Subsidiary which has a gross book value in excess of 2% of
Consolidated Net Tangible Assets other than a plant, warehouse, office building, or
portion thereof which, in the opinion of the Company’s Board of Directors, is not of
material importance to the business conducted by the Company and its Restricted
Subsidiaries as an entirety.

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

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

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

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

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

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

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

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

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

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

8

 

     “Security” or “Securities” means any note or notes, bond or bonds, debenture or
debentures, or any other evidences of indebtedness, as the case may be, of any series
authenticated and delivered from time to time under this Indenture.

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

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

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

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

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

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

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

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

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

     “Trustee” means the party named as such above until a successor becomes such
pursuant to this Indenture and thereafter means or includes each
party who is then a trustee hereunder, and if at any time there is more than one
such party, “Trustee” as used with respect to the Securities of any series means

9

 

the Trustee with respect to Securities of that series. If Trustees with respect to
different series of Securities are trustees under this Indenture, nothing herein shall
constitute the Trustees co-trustees of the same trust, and each Trustee shall be the
trustee of a trust separate and apart from any trust administered by any other Trustee
with respect to a different series of Securities.

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

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

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

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

     Section 1.02. Officers’ Certificates and Opinions. Every Officers’ Certificate,
Opinion of Counsel, and other certificate or opinion to be delivered to the Trustee under
this Indenture with respect to any action to be taken by the

10

 

Trustee (except for the Officers’ Certificate required by Section 10.04) shall
include the following:

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

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

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

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

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

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

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

     Section 1.04. Acts of Securityholders. (a) Any request, demand, authorization,
direction, notice, consent, waiver, or other action provided by this Indenture to be
given or taken by Securityholders may be embodied in and
evidenced by one or more instruments of substantially similar tenor signed by such
Securityholders in person or by an agent duly appointed in writing; and,

11

 

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

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

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

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

12

 

direction, notice, consent, waiver or other action, and for that purpose the Securities
Outstanding shall be computed as of such Record Date; provided that no such
authorization, agreement or consent by the Holders on such Record Date shall be deemed
effective unless it shall become effective pursuant to the provisions of this Indenture
not later than six months after such Record Date.

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

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

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

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

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

13

 

shall be the equivalent of such notice. Waivers of notice by Securityholders shall be
filed with the Trustee, but such filing shall not be a condition precedent to the
validity of any action taken in reliance upon such waiver.

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

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

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

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

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

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

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

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

     Section 1.14. Judgment Currency. The Company and the Guarantor agree, to the
fullest extent that they may effectively do so under applicable law,

14

 

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

     Section 1.15. Legal Holidays.

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

ARTICLE 2

Security Forms

     Section 2.01. Forms Generally. The Securities of each series shall have such
appropriate insertions, omissions, substitutions and other variations as are required or
permitted by this Indenture and may have such letters, numbers or other marks of
identification and such legends or endorsements placed thereon, as

15

 

may be required to comply with the rules of any securities exchange, or as may,
consistently herewith, be determined by the officers executing such Securities, as
evidenced by their execution of the Securities. Any portion of the text of any Security
may be set forth on the reverse thereof, with an appropriate reference thereto on the
face of the Security.

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

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

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

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

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TRUSTEE’S CERTIFICATE OF AUTHENTICATION

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

	 	 	 	 	 
	 	

UNION BANK, N.A., as Trustee,

 	 
	 	By:  	

 	 
	 	 	Authorized Signatory 	 
	 	 	 	 
	 

ARTICLE 3

The Securities

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

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

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

     (1) the title of such series;

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

19

 

     (24) the appointment by the Trustee of an Authenticating Agent in one or more places
other than the Corporate Trust Office of the Trustee, with power to act on behalf of the
Trustee, and subject to its direction, in the authentication and delivery of the
Securities of such series;

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

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

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

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

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

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

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

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

20

 

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

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

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

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

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

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

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

21

 

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

     (1) an executed supplemental indenture, if any;

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

     (3) an Opinion of Counsel, stating that:

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

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

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

22

 

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

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

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

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

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

23

 

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

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

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

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

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

24

 

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

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

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

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

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

25

 

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

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

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

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

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

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

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

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

26

 

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

ARTICLE 4

Satisfaction and Discharge

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

     (a) either

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

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

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

     (A) have become due and payable, or

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

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

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

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

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

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

     Section 4.02. Discharge and Defeasance

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

     Section 4.03. Covenant Defeasance.

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

32

 

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

     Section 4.04. Conditions to Defeasance or Covenant Defeasance.

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

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

33

 

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

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

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

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

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

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

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

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

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

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

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

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

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

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

35

 

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

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

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

ARTICLE 5

Remedies

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

36

 

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

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

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

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

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

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

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

37

 

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

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

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

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

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

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

38

 

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

ARTICLE 6

The Trustee

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

     (d) the Trustee may consult with counsel and any Opinion of Counsel shall be a
full and complete authorization and protection in respect of any action taken,
suffered or omitted by it hereunder in good faith and in reliance thereon;

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

     Section 6.10. Resignation and Removal; Appointment of Successor.

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

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

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

     (d) If at any time:

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

52

 

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

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

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

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

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

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

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	 	UNION BANK, N.A., as Trustee

 	 
	 	By:  	 	 
	 	 	As Authenticating Agent 	 
	 	 	 
	 	By:  	 	 
	 	 	Authorized Signatory 	 

ARTICLE 7

     Securityholders’ Lists and Reports by Trustee and Company

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

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

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

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

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

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

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

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

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

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

55

 

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

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

     Section 7.04. Reports by Company. The Company will:

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

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

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

     (d) Delivery of such reports, information and documents to the Trustee is for
informational purposes only and the Trustee’s receipt of such reports shall not
constitute constructive notice of any information contained therein or determinable
from information contained therein, including the Company’s compliance with any of its
covenants hereunder (as to which the Trustee is entitled to rely exclusively on
Officers’ Certificates)

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ARTICLE 8

Consolidation, Merger, Conveyance or Transfer

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

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

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

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

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

57

 

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

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

ARTICLE 9

Supplemental Indentures

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

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

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

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

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

58

 

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

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

     (f) to secure any series of Securities; or

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

     (h) to evidence and provide for the acceptance of appointment by another
corporation as a successor Trustee hereunder with respect to one or more series of
Securities and to add to or change any of the provisions of this Indenture as shall be
necessary to provide for or facilitate the administration of the trusts hereunder by
more than one Trustee, pursuant to Section 6.11 hereof; or

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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ARTICLE 10

Covenants

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Article
11

Redemption of Securities

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

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

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

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

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

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

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

     All notices of redemption shall state:

     (1) the Redemption Date;

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

ARTICLE 12

Repayment at Option of
Holders

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

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

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

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

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

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

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ARTICLE 13

Subordination of Subordinated
Securities

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

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

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

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

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

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

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

     If:

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

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

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

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

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

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

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

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

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

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

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

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

ARTICLE 14

Guarantee of Securities

     Section 14.01. Guarantee. The Guarantor hereby fully and unconditionally guarantees
to each Holder of a Security authenticated and delivered by the Trustee hereunder, and
to the Trustee on behalf of each such Holder, the due and punctual payment in full of
the principal of and premium, if any, and interest on such Security and all other
amounts payable by the Company under the Indenture when and as the same shall become due
and payable, whether at the Stated Maturity, by declaration of acceleration, call for
redemption or otherwise, and interest on the overdue principal and (to the extent
permitted by law) interest, if any, on such Security (collectively, the “Obligations”),
in accordance with the terms of such Security and this Indenture. If the Company shall
fail to pay when due any Obligations, for whatever reason, the Guarantor shall be
obligated to pay in cash the same promptly. An Event of Default under this Indenture or
the Security of any series shall entitle the Holders of such Securities to accelerate
the Obligations of the Guarantor hereunder in the same manner and to the same extent as
the Obligations of the Company.

     Section 14.02. Waiver. To the fullest extent permitted by applicable law, the
Guarantor hereby waives the benefits of diligence, presentment, demand for payment, any
requirement that the Trustee or any of the Holders exhaust any right or take any action
against the Company or any other Person, filing of claims with a court in the event of
insolvency or bankruptcy of the Company, any right to require a proceeding first against
the Company, protest or notice with respect to any Security or the indebtedness
evidenced thereby and all demands whatsoever, and covenants that the Guarantee will not
be discharged in respect of any Security except as provided in this Article 14.

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     Section 14.03. Guarantee of Payment. The Guarantee shall constitute a guarantee of
payment when due and not a guarantee of collection. The Guarantor hereby agrees that, in
the event of a default in payment of principal of or premium, if any, or interest on any
Security, whether at its Stated Maturity, by declaration of acceleration, call for
redemption or otherwise, legal proceedings may be instituted by the Trustee on behalf
of, or by, the Holder of such Security, subject to the terms and conditions set forth in
this Indenture, directly against the Guarantor to enforce the Guarantee without first
proceeding against the Company.

     Section 14.04. No Discharge or Diminishment of Guarantee. Subject to Section 14.09,
the obligations of the Guarantor hereunder shall be absolute and unconditional and not
be subject to any reduction, limitation, termination, impairment or for any reason
(other than the payment in full in cash of the Obligations), including any claim of
waiver, release, surrender, alteration or compromise of any of the Obligations, and
shall not be subject to any defense or setoff, counterclaim, recoupment or termination
whatsoever by reason of the invalidity, illegality or unenforceability of the
Securities, this Indenture or the Obligations or otherwise. Without limiting the
generality of the foregoing, the obligations of the Guarantor hereunder shall not be
discharged or impaired or otherwise affected by the failure of the Trustee or any Holder
of the Notes to assert any claim or demand or to enforce any remedy under this Indenture
or any Security, any other guarantee or any other agreement, by any waiver, modification
or indulgence of any provision thereof, by any default, failure or delay, willful or
otherwise, in the performance of the Obligations or by any other act or omission or
delay to do any other act that may or might in any manner or to any extent vary the risk
of the Guarantor or that would otherwise operate as a discharge of the Guarantor as a
matter of law or equity (other than the payment in full in cash of all the Obligations);
provided, however, that notwithstanding the foregoing, no such waiver, modification or
indulgence shall, without the consent of the Guarantor, increase the principal amount of
such Security, or increase the interest rate thereon, change any redemption provisions
thereof (including any change to increase any premium payable upon redemption thereof)
or change the Stated Maturity of any payment thereon, or increase the principal amount
of any Original Issue Discount Security that would be due and payable upon a declaration
of acceleration or the maturity thereof pursuant to Section 5.02 of this Indenture.

     Section 14.05. Defenses of Company Waived. To the extent permitted by applicable
law, the Guarantor waives any defense based on or arising out of any defense of the
Company or the unenforceability of the Obligations or any part thereof from any cause,
or the cessation from any cause of the liability of the Company, other than final
payment in full in cash of the Obligations. The Guarantor waives any defense arising out
of any such election even though such election operates to impair or to extinguish any
right of reimbursement or subrogation or other right or remedy of the Guarantor against
the Company or any security.

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     Section 14.06. Continued Effectiveness. Subject to Section 14.09, the Guarantor
further agrees that its Guarantee with respect to any Security hereunder shall remain in
full force and effect and continue to be irrevocable notwithstanding any petition filed
by or against the Company for liquidation or reorganization, the Company becoming
insolvent or making an assignment for the benefit of creditors or a receiver or trustee
being appointed for all or any significant part of the Company’s assets, and shall, to
the fullest extent permitted by law, continue to be effective or be reinstated, as the
case may be, if at any time payment, or any part thereof, of principal of or interest on
any Obligation is rescinded or must otherwise be restored or returned by the Trustee or
any Holder of any Security, whether as a “voidable preference,” “fraudulent transfer”
upon bankruptcy or reorganization of the Company or otherwise, all as though such
payment or performance had not been made, until the date upon which the entire
Obligation, if any, and interest on such Security has been, or has been deemed pursuant
to the provisions of this Indenture to have been paid in full. In the event that any
payment, or any part thereof, is rescinded, reduced, restored or returned on any
Security, such Security shall, to the fullest extent permitted by law, be reinstated and
deemed paid only by such amount paid and not so rescinded, reduced, restored or
returned.

     Section 14.07. Subrogation. In furtherance of the foregoing and not in limitation
of any other right of the Guarantor by virtue hereof, upon the failure of the Company to
pay any Obligation when and as the same shall become due, the Guarantor hereby promises
to and will, upon receipt of written demand by the Trustee or any Holder of the
Securities of any series, forthwith pay, or cause to be paid, to the Holders in cash the
amount of such unpaid Obligations, and thereupon the Holders shall, assign (except to
the extent that such assignment would render a Guarantor a “creditor” of the Company
within the meaning of Section 547 of Title 11 of the United States Code as now in effect
or hereafter amended or any comparable provision of any successor statute) the amount of
the Obligations owed to it and paid by the Guarantor pursuant to this Guarantee to the
Guarantor, such assignment to be pro rata to the extent the Obligations in question were
discharged by the Guarantor, or make such other disposition thereof as the Guarantor
shall direct (all without recourse to the Holders, and without any representation or
warranty by the Holders). If (a) the Guarantor shall make payment to the Holders of all
or any part of the Obligations and (b) all the Obligations and all other amounts payable
under this Indenture shall be paid in full, the Trustee will, at the Guarantor’s
request, execute and deliver to the Guarantor appropriate documents, without recourse
and without representation or warranty, necessary to evidence the transfer by
subrogation to the Guarantor of an interest in the Obligations resulting from such
payment by the Guarantor.

     Section 14.08. Subordination. Upon payment by the Guarantor of any sums to the
Holders, as provided above, all rights of the Guarantor against the Company, arising
as a result thereof by way of right of subrogation or otherwise, shall in all respects
be subordinated and junior in right of payment to the prior

78

 

payment in full in cash of all the Obligations to the Trustee; provided, however,
that any right of subrogation that the Guarantor may have pursuant to this Indenture
is subject to Section 14.07.

     Section 14.09. Release of Guarantor and Termination of Guarantee. The Guarantor
shall be automatically and unconditionally released and discharged from all obligations
under this Indenture and the Guarantee without any action required on the part of the
Trustee or any Holder upon the occurrence of the Distribution (so long as the other
transactions constituting the Spin-Off have occurred).

     The Company will deliver a certificate to the Trustee stating that the
Distribution and the transactions constituting the Spin-Off have occurred in
accordance with the agreements related to the Spin-Off as described in the
Offering Memorandum, and the Trustee may conclusively rely on such certificate.

     The Trustee shall deliver an appropriate instrument evidencing such release
upon receipt of a request of the Company accompanied by an Officers’ Certificate
certifying as to the compliance with this Section.

     Section 14.10. Limitation of Guarantors’ Liability. The Guarantor, and by its
acceptance hereof each Holder, hereby confirms that it is the intention of all such
parties that the Guarantee by the Guarantor not constitute a fraudulent transfer or
conveyance for purposes of Title 11 of the United States Code, the Uniform Fraudulent
Conveyance Act, the Uniform Fraudulent Transfer Act or any similar federal or state law
to the extent applicable to the Guarantor. To effectuate the foregoing intention, the
Holders and the Guarantor hereby irrevocably agree that the obligations of the Guarantor
under this Indenture and the Guarantee shall be limited to the maximum aggregate amount
which, after giving effect to all other contingent and fixed liabilities of the
Guarantor, will result in the obligations of the Guarantor under the Guarantee not
constituting such fraudulent transfer or conveyance.

     The Guarantee is expressly limited so that in no event, including the acceleration
of the Maturity of the Securities, shall the amount paid or agreed to be paid in respect
of interest on the Securities (or fees or other amounts deemed payment for the use of
funds) exceed the maximum permissible amount under applicable law, as in effect on the
date hereof and as subsequently amended or modified to allow a greater amount of
interest (or fees or other amounts deemed payment for the use of funds) to be paid under
the Guarantee. If for any reason the amount in respect of interest (or fees or other
amounts deemed payment for the use of funds) required by the Guarantee exceeds such
maximum permissible amount, the obligation to pay interest under the Guarantee (or fees
or other amounts deemed payment for the use of funds) shall be automatically reduced to
such maximum permissible amount and any amounts collected by any holder of

79

 

any Security in excess of the permissible amount shall be automatically applied to
reduce the outstanding principal on such Security.

     Section 14.11. No Obligation to Take Action Against the Company. Neither the
Trustee, any Holder nor any other Person shall have any obligation to enforce or
exhaust any rights or remedies or take any other steps under any security for the
Obligations or against the Company or any other Person or any Property of the Company
or any other Person before the Trustee, such Holder or such other Person is entitled to
demand payment and performance by the Guarantor of its liabilities and obligations
under the Guarantee.

     Section 14.12. Execution and Delivery. To evidence the Guarantee set forth in
this Article 14, the Guarantor hereby agrees that this Indenture shall be executed
on behalf of the Guarantor by an Officer of the Guarantor.

     The Guarantor hereby agrees that the Guarantee set forth in this Article XIV
shall remain in full force and effect notwithstanding the absence of the endorsement
of any notation of the Guarantee on any Securities.

     If an Officer whose signature is on this Indenture no longer holds that office
at the time the Trustee authenticates any Security, the Guarantee shall be valid
nevertheless.

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

*   *   *

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

[Signature page follows]

80

 

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

	 	 	 	 	 
	 	XELM INC.

 	 
	 	By:  	/s/ Michale Speetzen
 	 
	 	 	Name:  	Michale Speetzen 	 
	 	 	Title:  	Chief Financial Officer 	 
	 
	 	ITT CORPORATION, as Guarantor

 	 
	 	By:  	/s/ Colleen Ostrowski
 	 
	 	 	Name:  	Colleen Ostrowski 	 
	 	 	Title:  	Vice President and Treasurer 	 
	 
	 	UNION BANK, N.A., as Trustee

 	 
	 	By:  	/s/ Eva Aryeetey
 	 
	 	 	Name:  	Eva Aryeetey 	 
	 	 	Title:  	Vice President 	 

81

 

	 	 	 	 	 

	 	 	 

	State of New York
	 	 
	 

	 	ss.:
	County of
	 	 

     
On the 20th day of September 2011 before me personally came Michael
Speetzen, to me known, who, being by me duly sworn, did depose and say that he
resides at 478 Branchville Road, Ridgefield, Connectict 06877; that he is the
Chief Financial Officer of Xylem Inc., one of the parties described in and which
executed the above instrument; and that he/she signed his/her name thereto by
authority of the board of directors of said corporation.

	 	 	 	 	 
	 	 	 
	 	                                                /s/ Margaret A. Bersito
 	 
	 	Notary Public

 	 
	 	[Notarial Stamp] 	 
	 

[Notarial Seal]

82

 

	 	 	 

	State of New York
	 	 
	 

	 	ss.:
	County of
	 	 

     On the 20th day of September 2011 before me personally came Colleen
Ostrowski, to me known, who, being by me duly sworn, did depose and say that he/she
resides at 102 Joyce Road, Eastchester, NY 10709; that she is the Vice President and
Treasurer of ITT Corporation, one of the parties described in and which executed the
above instrument; and that she signed his/her name thereto by authority of the board of
directors of said corporation.

	 	 	 	 	 
	 	 	 
	 	                                                /s/ Margaret A. Bersito
 	 
	 	Notary Public

 	 
	 	[Notarial Stamp] 	 
	 

[Notarial Seal]

1

 

	 	 	 

	State of New York
	 	 
	 

	 	ss.:
	County of New York
	 	 

     On the 19th day of September 2011 before me personally came Eva Aryeety
to me known, who, being by me duly sworn, did depose and say that she resides at 1251
Avenue of the Americas, 19th Floor, New York, New York 10020; that he/she is a
Vice President of UNION BANK, N.A., one of the parties described in and which executed
the above instrument; and that she signed his/her name thereto by authority of the board
of directors of said corporation.

	 	 	 	 	 
	 	 	 
	 	                                                /s/ Ivy L. Wegener
 	 
	 	Notary Public

 	 
	 	[Notarial Stamp] 	 
	 

[Notarial Seal]

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