Document:

Exhibit
10.04

 

THE
CALIFORNIA COASTAL COMMUNITIES, INC.

 

RETIREMENT PLAN

 

 

Generally Effective January 1, 2009

(Amended and Restated through December 31, 2009)

 

 

TABLE OF CONTENTS

 

	
   

  	
   

  	
  Page

  
	
   

  	
   

  	
   

  
	
  ARTICLE I
  DEFINITIONS

  	
   

  	
  3

  
	
   

  	
   

  	
   

  
	
  ARTICLE II
  ELIGIBILITY

  	
   

  	
  18

  
	
   

  	
   

  	
   

  
	
  ARTICLE III
  RETIREMENT, TERMINATION, OR DEATH

  	
   

  	
  20

  
	
   

  	
   

  	
   

  
	
  ARTICLE IV
  FUNDING OF BENEFITS

  	
   

  	
  36

  
	
   

  	
   

  	
   

  
	
  ARTICLE V
  TRUST AGREEMENT AND TRUST FUND

  	
   

  	
  37

  
	
   

  	
   

  	
   

  
	
  ARTICLE VI
  CERTAIN LIMITATIONS ON BENEFITS

  	
   

  	
  37

  
	
   

  	
   

  	
   

  
	
  ARTICLE VII
  PLAN ADMINISTRATION

  	
   

  	
  38

  
	
   

  	
   

  	
   

  
	
  ARTICLE VIII AMENDMENT AND TERMINATION;
  PARTICIPATION AND WITHDRAWAL BY COMPANIES; PLAN MERGERS

  	
   

  	
  42

  
	
   

  	
   

  	
   

  
	
  ARTICLE IX
  TOP-HEAVY PROVISIONS

  	
   

  	
  45

  
	
   

  	
   

  	
   

  
	
  ARTICLE X
  GENERAL PROVISIONS

  	
   

  	
  45

  
	
   

  	
   

  	
   

  
	
  ARTICLE XI SPECIAL PROVISIONS RELATING TO THE
  CUTBACK OF OPERATIONS AT THE HAMPTON LOCATION

  	
   

  	
  49

  
	
   

  	
   

  	
   

  
	
  ARTICLE XII SPECIAL PROVISIONS RELATING TO THE
  CUTBACK OF OPERATIONS AT THE LA JOLLA LOCATION

  	
   

  	
  51

  
	
   

  	
   

  	
   

  
	
  ARTICLE XIII
  ADDITIONAL SPECIAL RULES

  	
   

  	
  52

  
	
   

  	
   

  	
   

  
	
  ARTICLE XIV SPECIAL PROVISIONS RELATING TO
  FORMER PARTICIPANTS IN THE ENGINEERING RESEARCH, INCORPORATED RETIREMENT PLAN
  FOR SALARIED EMPLOYEES AND THE ENGINEERING RESEARCH, INC. HOURLY EMPLOYEES
  PENSION PLAN

  	
   

  	
  55

  
	
   

  	
   

  	
   

  
	
  ARTICLE XV SPECIAL VESTING RULES IN CONNECTION
  WITH CORPORATE OFFICE SHUTDOWN AND COMPANY STREAMLINING

  	
   

  	
  76

  
	
   

  	
   

  	
   

  
	
  APPENDIX I
  LIMITATIONS ON BENEFITS

  	
   

  	
  I-1

  
	
   

  	
   

  	
   

  
	
  APPENDIX II
  DISTRIBUTION PROVISIONS

  	
   

  	
  II-1

  
	
   

  	
   

  	
   

  
	
  APPENDIX III TOP
  HEAVY PROVISIONS

  	
   

  	
  III-1

  

 

i

 

THE CALIFORNIA COASTAL COMMUNITIES,
INC.

 

RETIREMENT PLAN

 

Effective December 31, 1993, the name of the
Bolsa Chica Company Retirement Plan was officially changed to the Koll Real
Estate Group Retirement Plan (the “Plan”) and Plan benefits were frozen.(1) 
Effective January 1, 1999 the Plan was renamed The California Coastal
Communities, Inc. Retirement Plan. 
The Plan has been amended to incorporate certain required changes, but
benefit accruals under this Plan remain frozen.

 

The Bolsa Chica Company Retirement Plan (formerly
known as The Henley Properties Inc. Retirement Plan and, prior to January 1,
1990, known as The Henley Group, Inc. Retirement Plan) was originally
adopted, effective June 1, 1986.

 

In connection with the change of the corporate name of
Henley Properties Inc. to The Bolsa Chica Company and the merger (the “1992
Merger”) of HP Merger Co., a wholly owned subsidiary of The Bolsa Chica
Company (known prior to the 1992 Merger as Henley Properties Inc.), with and
into The Henley Group, Inc., the name of the Plan was changed to The Bolsa
Chica Company Retirement Plan.

 

The Henley Group, Inc. Retirement Plan was
adopted as a pension plan for the benefit of the employees of The Henley Group, Inc.,
a Delaware corporation, effective June 1, 1986, by a resolution of Henley’s
Board of Directors, as a continuation of the Predecessor Plan.  In connection with the distribution as of December 31,
1989 to shareholders of the Company of the stock of a subsidiary of the
Company, the Plan was divided into two Plans, the Company was renamed Henley
Properties Inc. and, effective January 1, 1990, the Plan became known as
The Henley Properties Inc. Retirement Plan.

 

The Plan was adopted as a continuation of and
successor to The Signal Companies, Inc. Retirement Plan (the “Signal
Retirement Plan” or “Predecessor Plan”) for individuals

 

(i)                                     who

 

(A)                              were actively employed on January 1,
1986 by The Henley Group, Inc. (“Henley”) or a business that became a
subsidiary or division of Henley in connection with the distribution by
Allied-Signal Inc. (“Allied-Signal”) to the owners of its common stock of all
of the shares of Henley common stock as of May 27, 1986 (the “Spinoff”);
or

 

(1)                                  Effective September 30, 1993, The
Bolsa Chica Company changed its name to Koll Real Estate Group, Inc.  Consequently, as of September 30, 1993,
all references in this document to the Bolsa Chica Company should be read as
references to the Koll Real Estate Group, Inc.  Effective January 1, 1999 all references
to the Bolsa Chica Company and to Koll Real Estate Group, Inc. should be
read as references to California Coastal Communities, Inc.

 

1

 

(B)                                were actively employed on January 1,
1986 by a member of the Allied-Signal controlled group of corporations and
became Employees in connection with the Spinoff; and

 

(ii)                                  who participated or were eligible to
participate in the Predecessor Plan on December 31, 1985,

 

subject to a transfer of all assets allocable to such
individuals to the Plan from the Predecessor Plan.  Benefits payable under this Plan shall not
duplicate benefits payable under the Predecessor Plan.

 

The Plan is intended to be tax-exempt and qualified
under the provisions of Section 401 and other applicable provisions of the
Internal Revenue Code of 1986, as amended.

 

Pursuant to Notice 88-131, the Plan was amended to
limit compensation for purposes of computing accrued benefits under the Plan to
$200,000 as of January 1, 1989 (Model Amendment 1), and to prohibit the
additional accrual of benefits for highly compensated participants after May 1,
1989 (Model Amendment 2).

 

The Plan was amended and restated to comply with the
Tax Reform Act of 1986 and Section 401(a)(4) of the Internal Revenue
Code as of January 1, 1989.  The
accrued benefit of highly compensated participants has been retroactively
adjusted to reflect the accrual of benefits after May 1, 1989 in
accordance with the terms of this Amended and Restated plan.

 

The Plan was also amended and restated effective January 1,
1990 in connection with the corporate reorganization described above and to
make certain other changes.  The Plan was
again amended and restated effective August 1, 1992 and again as of the
dates indicated in this document to reflect the name changes described above
and to make certain other changes.

 

Subject to Notice 88-131, the rights and obligations
of each person covered by the Plan who retires or whose employment otherwise
terminates prior to the effective date of any amendment or restatement shall be
determined in accordance with the Plan as in effect as of the date of his
retirement or termination as the case may be.

 

Effective December 31, 1993, benefit accruals
under this Plan were frozen.

 

This Plan document contains changes requested by the
Internal Revenue Service in April and May of 1996 as part of the
determination letter process.  The Plan
document also contains changes made as part of the IRS determination letter
process in 2001, including incorporation into this amended and restated Plan
document of Amendment No. 1, which was executed on December 14, 1999.

 

Effective January 1, 2009, unless otherwise
indicated, this document constitutes an amendment and restatement of the
Plan.  Unless specifically provided to
the contrary in this document, the rights and benefits of a Plan Participant
who ceased to be an Employee before January 1, 2009 will be determined in
accordance with the terms of the Plan on the date on which that Participant
ceased to be an Employee, and in accordance with any provisions of the Plan
that are specifically made effective to that date.

 

2

 

ARTICLE I

 

DEFINITIONS

 

Section 1.1             General.  Whenever the following terms are used in the
Plan with the first letter capitalized, they shall have the meaning specified
below unless the context clearly indicates to the contrary.

 

Section 1.2             Accrued Benefit.  An Employee’s “Accrued Benefit”
as of his Separation from the Service shall have the meaning given in Section 3.10.

 

Section 1.3             Actuarial Equivalent including Definition of Applicable Interest Rate
and Applicable Mortality Table.  “Actuarial
Equivalent” shall mean the equivalent of a given benefit, or a given amount,
payable in another manner.  Determination
of a Participant’s vested accrued benefit for purposes other than a lump sum
payment shall be based on an interest rate of 7.5% and mortality specified in
the 1984 Unisex Pension Table.

 

In the case of a Participant who has not reached his
Early Retirement Date and who has elected to receive a Disability Retirement
Benefit under Section 3.5, the ages in the table specified above will be
set forward 5 years in the calculation of the Disability Retirement Benefit of
such Participant.

 

For purposes of determining (i) whether the
present value of a Participant’s accrued benefit exceeds $5,000 for purposes of
Section 3.13 and (ii) the amount of a lump sum benefit, the Actuarial
Equivalent shall be calculated using the Applicable Interest Rate
under Section 417(e) of the Code for the second full calendar month
before the date of distribution, and the Applicable Mortality Table
under Section 417(e) of the Code.

 

Notwithstanding any other provision of the Plan to the
contrary, the present value of the accrued lump sum retirement benefit due an
Employee who became a Participant prior to January 1, 2000 shall not be
less than the present value of such Participant’s vested accrued benefit as of December 31,
1999 utilizing an interest rate that is equal to 7.5% (provided the interest
rate used shall be no greater than the immediate or deferred rate, in effect as
of the first day of each Plan Year, whichever is appropriate, used by the
Pension Benefit Guaranty Corporation to determine the present value of a lump
sum distribution upon plan termination) and mortality table specified above for
purposes other than a lump sum payment.

 

Section 1.4             Administrator or Administrative Committee.  “Administrator”
or “Administrative Committee” shall mean the Bolsa Chica Administrative
Committee, appointed in accordance with Article VII.  Effective September 30, 1993, “Administrator”
or “Administrative Committee” means Koll Real Estate Group, Inc., and any
officer of Koll Real Estate Group, Inc. is authorized to act on behalf of
the Administrator or the Administrative Committee.

 

Section 1.5             Aggregate Group.  “Aggregate Group” shall mean
the plan or plans required to be considered with this Plan for purposes of
satisfying the requirements of Section 401(a)(4) and Section 410
of the Code.

 

3

 

Section 1.6             Anniversary Date.  “Anniversary Date” of a
Participant shall mean the anniversary of the date on which he became an
Employee for the first time or after a Severance from Service Date.

 

Section 1.7             Average Final Compensation.  “Average
Final Compensation” of a Participant shall mean his average monthly
Compensation during the highest sixty consecutive full calendar months during
which he received Compensation as an Employee in his last one hundred twenty
such months.  If he has less than one
hundred twenty such months there shall be substituted the number of such months
he has accumulated.  For purposes of
determining consecutiveness, calendar months other than full calendar months
during which he received Compensation as an Employee shall be ignored.  Subject to Section 1.16(g), Compensation
for any twelve-month period included in the calculation of Average Final
Compensation shall not exceed $200,000, adjusted for changes in the cost of
living as provided in Section 415(d) of the Code.

 

Effective December 31, 1993, the Average Final
Compensation of a Participant shall be calculated for a consecutive monthly
period under Section 1.7 of the Plan ending no later than December 31,
1993, and no Compensation paid or earned after December 31, 1993 shall be
taken into account.  Accordingly, the
Average Final Compensation of each Participant shall be a fixed dollar amount
as of December 31, 1993 which shall not be subsequently adjusted for any
Compensation earned or paid after December 31, 1993.

 

Section 1.8             Beneficiary.  “Beneficiary” shall mean a person properly
designated by a Participant or Former Participant in accordance with the Plan
and the rules, if any, promulgated by the Administrator, to receive Benefits,
solely in accordance with Section 3.6, 3.7 or 3.9, in the event of the
death of the Participant or Former Participant. 
The Plan will not honor waivers or disclaimers of Plan benefits;
provided, however, that the Plan will dispose of a Participant’s benefit as
though a Beneficiary predeceased the Participant if the Administrative
Committee receives from that Beneficiary, no earlier than the day after the
Participant’s death and no later than nine (9) months after the
Participant’s death a disclaimer that purports to satisfy the requirements of
Code Section 2518.

 

Section 1.9             Benefit.  The “Benefit” of a Participant shall mean a
payment payable at the times and over the applicable period specified in Article III.

 

Section 1.10           Board
of Directors.  “Board of Directors” shall mean the Board of
Directors or the Executive Committee of the Board of Directors of Bolsa
Chica.  Effective September 30,
1993, “Board of Directors” shall mean the Board of Directors of Koll Real
Estate Group, Inc.

 

Section 1.11           Bolsa
Chica.  “Bolsa Chica” shall mean The Bolsa Chica
Company, a Delaware corporation, formerly known as Henley Properties Inc.  Effective September 30, 1993, Bolsa
Chica became Koll Real Estate Group, Inc. and, effective September 30,
1993 all references in this Plan to Bolsa Chica should be read as references to
Koll Real Estate Group, Inc.  
Effective January 1, 1999, all references in this Plan to Bolsa
Chica should be read as references to California Coastal Communities, Inc.

 

4

 

Section 1.12           Code.  “Code”
shall mean the Internal Revenue Code of 1986, as amended.  All citations to sections of the Code are to
such sections as they may from time to time be amended or renumbered.

 

Section 1.13           Commissioner.  “Commissioner”
means the Commissioner of the Internal Revenue Service.

 

Section 1.14           Committee.  “Committee”
shall mean the Administrator or Administrative Committee.

 

Section 1.15           Company;
Companies.  As the context requires, “Company” or “Companies”
shall mean Bolsa Chica (as defined in Section 1.11), any corporation which
adopts the Plan as a whole or as to one or more divisions or classifications in
accordance with Section 8.4, and any successor corporation which continues
the Plan under Section 8.9, acting through their respective officers.

 

Section 1.16           Compensation.

 

(a)           “Compensation” of a Participant for any Plan Year shall
mean

 

(i)                                     his fixed, basic and regularly recurring
straight-time pay which for purposes of this Plan shall include the amount, if
any, by which such pay was voluntarily reduced in accordance with a qualified
cash or deferred arrangement under a qualified savings or thrift plan of any of
the Companies,

 

(ii)                                  any additional shift differential pay,

 

(iii)                               all amounts which an Employee on sick
leave would have received as his fixed, basic and regular recurring
straight-time pay had he not collected sick leave pay during such leave (but
excluding any statutory benefits or insured benefits),

 

(iv)                              payment for overtime hours,

 

(v)                                 commissions or sales, production or
nonincentive bonus payments, and

 

(vi)                              except as provided in subsection, any
annual year-end bonus or incentive compensation award attributable to such Plan
Year (whether or not paid within such Plan Year and whether paid in cash or in
securities), expressed as an average monthly rate of pay for the entire Plan
Year.  For purposes of computing such average
monthly rate of pay, a Participant’s Compensation for an entire Plan Year shall
be divided by the number of months in such Plan Year during which Compensation
was paid for such Plan Year.

 

5

 

(b)           For purposes of the Plan and notwithstanding any other
provision of this Section 1.16, a Participant’s Compensation for an entire
Plan Year shall not exceed $200,000, adjusted for changes in the cost of living
as provided in section 415(d) of the Code.  In determining the Compensation of a
Participant for purposes of this limitation, the rules of
section 414(q)(6) of the Code shall apply, except that in applying
such rules, the term “family” shall include only the spouse of the Participant
and any lineal descendants of the Participant who have not attained age 19
before the close of the year.

 

(c)           “Compensation” shall not include severance payments,
inducement or completion bonuses for periods of overseas or on-location
employment, overseas or on-location differential payments, insurance, long-term
disability pay, any profit sharing payments, any public or private retirement
contributions or benefits, any retainers, any insurance benefits or
Company-paid premiums, payments from any stock option and award plan or any
savings and stock purchase plan or any other special benefits, provided,
however, that recurring overseas bonuses which constitute incentive
compensation awards and are paid on a regular basis shall be included in
Compensation.

 

(d)           “Compensation” shall not include any portion of salary
or any bonus or incentive compensation award the payment of which has been
deferred at the election of the Participant; provided, however, that such
deferred salary, bonus or incentive compensation attributable to a year used to
calculate Average Final Compensation and actually paid in a year used to
calculate Average Final Compensation will be treated as Compensation in the
year paid.

 

(e)           Subject to (f) below, the Compensation of an
Employee who was a participant in the Predecessor Plan on December 31,
1985 and became a Participant in this Plan in connection with the Spinoff of
Henley by Allied-Signal shall include all amounts earned during employment by a
member of the Allied-Signal controlled group of corporations prior to January 1,
1986 that would have been treated as Compensation pursuant to Section 1.14
of the Predecessor Plan.

 

(f)            Notwithstanding the foregoing provisions of Section 1.7
and this Section 1.16, Compensation shall not include any amount earned by
the Participant prior to January 1, 1990 if the Participant’s accrued
benefit under this Plan was transferred to The Henley Group, Inc.
Retirement Plan in connection with the distribution as of December 31,
1989 to shareholders of the Company of the stock of The Henley Group, Inc.
(formerly known as New Henley Inc.) and the division of the Plan into two
Plans.

 

(g)           In addition to other applicable limitations set forth
in the Plan and notwithstanding any other provision of the Plan to the
contrary, for Plan Years beginning on or after January 1, 1994, the annual
Compensation (if any) of each Employee taken into account under the Plan shall
not exceed the OBRA ‘93 annual compensation limit.  The OBRA ‘93 annual Compensation limit is
$150,000, as adjusted by the Commissioner of Internal Revenue for increases in
the cost of living in accordance with Code Section 401(a)(17)(B).  The cost-of-living adjustment in effect for a
calendar year applies to any period not exceeding 12 months, over which
Compensation is determined (“Determination Period”) beginning in that calendar
year.  If a Determination Period consists
of fewer than 12 months, the OBRA ‘93 annual Compensation limit will be
multiplied by a fraction, the numerator of which is the number of months in the
Determination Period, and the denominator of which is 12.

 

6

 

For Plan Years beginning on or after January 1,
1994, any reference in this Plan to the limit under Code Section 401(a)(17)
shall mean the OBRA ‘93 annual Compensation limit set forth in this provision.

 

In determining the $150,000 (indexed) limit, the
family aggregation rules of Code Section 414(q)(6) apply, but
the term “family” includes only the spouse of the Participant and any lineal
descendants of the Participant who have not attained age 19 before the close of
the Plan Year.  To the extent required by
applicable Regulations, if the limitation is reached for a family group, then
the limitation amount will be prorated among each member of the family group in
the proportion that each family member’s compensation bears to the total
Compensation of the family group.

 

Notwithstanding any other provision in the Plan, for
purposes of calculating each Section 401(a)(17) Employee’s Accrued Benefit
under this Plan, the Accrued Benefit will be the sum of (a) the Employee’s
Accrued Benefit as of the last day of the last Plan Year beginning before January 1,
1994, frozen in accordance with Regulation 1.401(a)(4)-13, and (b) the
Employee’s Accrued Benefit determined under the benefit formula applicable for
the Plan Year beginning on or after January 1, 1994, as applied to the
Employee’s years of service credited to the Employee for Plan Years beginning
or after January 1, 1994 for purposes of benefit accruals.  A Section 401(a)(17) Employee means an
Employee whose current Accrued Benefit as of a date on or after the first day
of the first Plan Year beginning on or after January 1, 1994, is based on
Compensation for a year beginning prior to the first day of the first Plan Year
beginning on or after January 1, 1994, that exceeded $150,000.

 

(h)           “Compensation” shall include any amounts treated as ‘compensation’
under any of the Related Plans with respect to a period when the Participant is
entitled to Credited Service pursuant to Section 1.19(a)(v).

 

(i)            The annual compensation of each Participant shall not
be increased due to EGTRRA, and no cost of living increases shall be in effect
that would result in such an increase.

 

(j)            For purposes of the definitions of “Compensation” in
the Plan, amounts under Code Section 125 include any amounts not available
to a Participant in cash in lieu of group health coverage because the
Participant is unable to certify that he or she has other health coverage.  An amount will be treated as an amount under
Code Section 125 only if the employer does not request or collect
information regarding the Participant’s other health coverage as part of the
enrollment process for the health plan.

 

Section 1.17           Contingent
Annuitant.  “Contingent Annuitant” shall mean a person
properly designated by a Participant or Former Participant to receive benefits,
solely in accordance with Section 3.6 or 3.7 in the event of the
Participant’s death after payment of an annuity hereunder commences.

 

Section 1.18           Covered
Compensation.  “Covered Compensation” means the average
(without indexing) of the Taxable Wage Base (as defined below) in effect for
each calendar year during the 35-year period ending with the calendar year in
which the Participant attains (or will attain) Social Security Retirement
Age.  The Taxable Wage Base in effect for
any year following the year in which the determination is being made will be
assumed to be equal to the Taxable Wage Base in effect for the calendar year in
which the determination is being made. 
The Taxable Wage Base is the contribution and benefit base in effect
under Section 230 of the Social Security Act as of the beginning of the
calendar year.

 

7

 

Effective December 31, 1993, the Covered
Compensation of each Participant shall be calculated under Section 1.18 of
the Plan as of December 31, 1993. 
For purposes of such calculation, it shall be assumed that the Taxable
Wage Base for each year in the remainder of the 35-year period applicable to
the Participant shall remain at the Taxable Wage Base in effect for that
Participant for the 1993 calendar year. 
Accordingly, the Covered Compensation of each Participant shall be set
at a fixed dollar amount as of December 31, 1993 and shall not be adjusted
for (i) Compensation or other remuneration the Participant may in
fact earn after December 31, 1993 or (ii) any changes in the
Taxable Wage Base for calendar years after the 1993 calendar year.

 

Section 1.19           Credited
Service.

 

(a)           Except as provided in subparagraph (g), (h) or (i) and
consistent with the rules of subparagraphs (b) through (f), the
Credited Service of a Participant means the total number of months (for which
he receives or is entitled to receive Compensation) of an Employee’s latest
period of uninterrupted employment (beginning on the Employee’s employment
commencement date or reemployment commencement date, whichever is applicable)
with the Company (including any business treated as a Company under Section 10.15),
beginning on or after January 1, 1986 and ending on his Severance from
Service Date, but not later than the date he ceases to be eligible to continue
to be a Participant in accordance with Section 2.1(b).  An individual’s Credited Service also shall
include the following periods of time regardless of whether he receives
Compensation therefor from the Company:

 

(i)                                     any period of absence from active
employment with the Company prior to his Normal Retirement Date due to
Disability, provided the Participant has not elected to receive the Disability
Retirement Benefit Payable under Section 3.5;

 

(ii)                                  any period of absence from active
employment with the Company prior to his Normal Retirement Date due to service
in the United States Armed Forces, provided he is reemployed by the Company in
accordance with applicable statutes following his discharge from military
service;

 

(iii)                               any period of absence from active
employment with the Company prior to his Normal Retirement Date due to a
Company directed or authorized leave of absence; and/or

 

8

 

(iv)                              any period of service provided for in
Sections 8.8.2 and 8.8.3 of prior Plan documents.

 

(v)                                 effective for an Employee’s latest period
of uninterrupted employment with the Company beginning on or after January 1,
1990 and ending on the earliest of (1) December 31, 1993, (2) the
Employee’s Separation from the Service, (3) the Employee’s Severance from
Service Date, or (4) the date that the Employee ceases to be eligible to
continue to be a Participant in accordance with Section 2.1(b), any period
prior to the individual becoming an Employee during which the individual is an ‘employee’
earning ‘credited service’ under any of the Related Plans, or would have earned
‘qualified service’ under the Fisher Scientific International Inc. Retirement
Plan, but for the individual’s decision not to participate in said Plan.

 

(b)           In computing the Credited Service of any Employee,
which shall be expressed as years and twelfths thereof, a Participant shall be
credited with a full calendar month of service only if his employment commences
during the first fifteen days of such month, or is terminated after the first
fifteen days of such month.  No Employee
shall receive credit for more than one (1) month of Credited Service for
any one (1) calendar month nor shall he receive credit for more than
twelve (12) months of Credited Service during any Plan Year.

 

(c)           An Employee will be deemed to have voluntarily
terminated his employment if and as of the date any of the following occurs:

 

(i)                                     he fails or refuses to return to work for
the Company promptly after a sick leave or after a Company directed or
authorized leave of absence expires, or after he recovers from disability; or

 

(ii)                                  he leaves the employ of the Company for
service in the Armed Forces of the United States and fails to make application
for reemployment by the Company in accordance with applicable statutes
following his discharge from military service.

 

When an Employee is treated as voluntarily terminated
as a result of any of the causes listed above, his Credited Service will
include the calendar month in which such voluntary termination occurs unless
such voluntary termination occurs during the first fifteen days of such
calendar month.

 

(d)           Continuation of temporary layoff for lack of work for
a period in excess of twelve months shall be considered a discharge effective
as of the expiration of twelve months of the layoff.

 

(e)           If an Employee who has met the requirements for a
Vested Retirement Benefit set forth herein begins a Period of Severance and
subsequently returns to the employ of the Company, his participation in the
Plan shall be reinstated immediately.  He
shall retain his previously accumulated Credited Service and he shall be
credited with additional Credited Service for his continuous eligible employment
with the Company after such return.

 

9

 

(f)            If a Participant who has not met the requirements for
a Vested Retirement Benefit set forth herein begins a Period of Severance and
subsequently returns to the employ of the Company, his participation in the
Plan shall be reinstated immediately.  If
the total period of time elapsed from the Severance from Service Date to the
effective date of his reemployment is less than the period of his previously
accumulated Vesting Service, he shall retain his previously accumulated
Credited Service and shall be credited with Credited Service under this Plan
for his continuous eligible employment during such new period.  If the total period of time elapsed from his
Severance from Service Date to the effective date of his reemployment equals or
exceeds the greater of five (5) years or his previously accumulated
Vesting Service, he shall forfeit his previously accumulated Credited Service
and shall be credited with Credited Service for his continuous eligible
employment during such new period.

 

(g)           Notwithstanding any other provision of this Section 1.19,
the Credited Service of each Participant

 

(i)                                     who

 

(A)                              was actively employed on January 1,
1986 by Henley or a business that became a subsidiary or division of Henley in
connection with the Spinoff of Henley by Allied-Signal as of May 27, 1986;
or

 

(B)                                was actively employed on January 1,
1986 by a member of the Allied-Signal controlled group of corporations and
became an Employee in connection with the Spinoff; and

 

(ii)                                  who was a participant in the Predecessor
Plan on December 31, 1985

 

shall, subject to the transfer of all assets allocable
to such Employee from the trust under the Predecessor Plan to the Trust Fund,
include all Credited Service under Section 1.16 of the Predecessor
Plan.  Notwithstanding anything herein to
the contrary, for purposes of calculating the Credited Service of any Employee
who is a Participant in the Plan on or after June 1, 1992 and whose
Credited Service is calculated in part by reference to Section 1.16(a) of
The Signal Companies, Inc. Retirement Plan, such Section 1.16(a) of
The Signal Companies, Inc. Retirement Plan shall be modified so as to
provide for the calculation of Credited Service from the participant’s date of
hire.

 

(h)           Except as provided in subsection 1.19(a)(iv) and
(v) of this Plan, the Credited Service of a Participant shall not include
any period of employment with the Company during which such Participant was
excluded from eligibility to participate in the Plan by subsection 2.1 or
during which such Participant was not an Employee.

 

10

 

(i)            Notwithstanding any other provision of this Section 1.19,
the term “Credited Service” shall not include the Credited Service of a
Participant to the extent such Participant’s accrued benefit under this Plan
was transferred to The Henley Group, Inc. Retirement Plan in connection
with the distribution as of December 31, 1989 to shareholders of the Company
of the stock of The Henley Group, Inc. (formerly known as New Henley Inc.)
and the division of the Plan into two plans.

 

(j)            Effective December 31, 1993, the Credited Service
of each Participant shall, for benefit accrual purposes under the Plan, be fixed
and frozen as of December 31, 1993, and no Credited Service shall, for
benefit accrual purposes, be earned for any service rendered after December 31,
1993.  However, Credited Service may
continue to be earned after December 31, 1993, in accordance with the
provisions of Section 1.19 of the Plan, solely and exclusively for
purposes of the early retirement subsidies available under the Plan as of December 31,
1993 and protected under Internal Revenue Code Section 411(d)(6).

 

Section 1.20           Determination
Date.  “Determination Date” means the date specified
in Section 9.2.

 

Section 1.21           Disability;
Disabled.  “Disability” of a Participant or “Disabled”
when used with reference to a Participant shall mean that he has been found by
the Company employing the Participant, on the basis of competent medical
evidence, before December 31, 1993 and while employed by the Company to be
unable, by reason of a medically determinable physical or mental impairment
which can be expected to result in death or to be of permanent duration, to
engage in the level of gainful activity determined under standards adopted by
such Company for purposes of this Plan. 
The determination by each Company that an employee is “Disabled” for
purposes of this Plan shall be made under standards adopted by each Company and
applied uniformly, which standards may include the Social Security Act
definition of disability, the definition applicable to such Company’s long-term
disability programs, if any, or such other definitions as may be adopted from
time to time by each Company.  Such
determination shall be subject to the approval of the Administrator.

 

Section 1.22           Disability
Retirement Date.  “Disability Retirement Date” of a Participant
shall mean the first day of any month coincident with or following his
Disability, provided the Participant has at least 10 years of Credited Service
at his Disability and elects to retire before age 65.

 

Section 1.23           Early
Commencement Date.  “Early Commencement Date” shall mean the
first day of the month as of which a Participant elects to begin receiving
payments prior to his Normal Retirement Date.

 

Section 1.24           Early
Retirement Benefit.  “Early Retirement Benefit” shall mean the
Benefit payable under Section 3.4.

 

Section 1.25           Early
Retirement Date.  “Early Retirement Date” of a Participant
shall generally mean the first day of the month, so designated by an Employee,
preceding his Normal Retirement Date, and which is coincident with or following
the later of his 55th birthday and his completion of ten (10) years of
Credited Service or such other date as is provided in Section 3.3.

 

11

 

Section 1.26           Employee.  “Employee”
shall mean any employee of any Company (including any person treated as an
Employee under Section 10.15) excluding

 

(a)           an employee who will not complete 1,000 Hours of
Service during a Plan Year,

 

(b)           a temporary employee, that is, one who is employed by
a Company for the specific purpose of working on a designated project for the
duration of such project, and

 

(c)           a director who is not otherwise an Employee.

 

(d)           a Leased Employee. 
For these purposes a Leased Employee means any person, other than a
common law employee of a Company, who pursuant to an agreement between that
Company and any other person (“leasing organization”) has performed services
for the recipient Company (or for such recipient and one or more related
persons determined in accordance with Code Section 414(n)(6)) on a
substantially full-time basis for a period of at least one (1) year (as
determined in accordance with the applicable provisions of the proposed Income
Tax Regulations section 1.414(n)-1(b)(10)), and such services are performed
under the primary direction or control of the recipient Company, unless such
individual is covered by a money purchase plan maintained by the leasing
organization and meeting the requirements of Code Section 414(n)(5)(B),
and leased employees do not constitute more than 20% of all Non-Highly
Compensated Employees of all Affiliated Companies within the meaning of Code Section 414(n)(5)(C)(ii).

 

Section 1.27           ERISA.  “ERISA”
shall mean the Employee Retirement Income Security Act of 1974, as amended.

 

Section 1.28           Former
Participant.  “Former Participant” shall mean a person who
has Separated from the Service and has become entitled to a Benefit under the
Plan.

 

Section 1.29           Henley.  “Henley”
shall mean the corporate entity known as The Henley Group, Inc. during the
period commencing on May 27, 1986 and ending December 31, 1989.

 

Section 1.30           Henley
Properties.  “Henley Properties” shall mean Henley
Properties Inc., a Delaware corporation known prior to January 1, 1990 as
The Henley Group, Inc. and after the 1992 Merger (as defined in the
preamble) as The Bolsa Chica Company.

 

Section 1.30A       Highly
Compensated Employee.  “Highly Compensated Employee” means (a) any
5% owner during the current Plan Year or the preceding Plan Year (“look back
year”), and (b) any Employee receiving Remuneration within the meaning of
Appendix I of the Plan in the look back year in excess of $80,000, as indexed
pursuant to Code Section 414(q).

 

Section 1.31           Hour
of Service.

 

(a)           “Hour of Service” of an Employee shall mean the
following:

 

12

 

(i)                                     Each hour for which he is paid or entitled
to payment (as determined under regulations of the Secretary of Labor without
reference to the limitations of Section 1.19) by a Company,

 

(ii)                                  Each hour in or attributable to a period
of time during which he performs no duties (irrespective of whether he has had
a Separation from the Service) due to a vacation, holiday, illness, incapacity
(including pregnancy or disability), layoff, jury duty, military duty or a
leave of absence, for which he is so paid or so entitled to payment; provided,
however, that

 

(A)                              no more than five hundred and one Hours
of Service shall be credited under this paragraph to an Employee on
account of any such period, and

 

(B)                                no such hours shall be credited to an
Employee if attributable to payments made or due under a plan maintained solely
for the purpose of complying with applicable worker’s compensation,
unemployment compensation or disability insurance laws or to a payment which
solely reimburses the Employee for medical or medically related expenses
incurred by him.

 

(iii)                               Each hour for which he is entitled to
back pay, irrespective of mitigation of damages, whether awarded or agreed to
by a Company.

 

(b)           Hours of Service under subsection (a) (ii) and
(a)(iii) shall be calculated in accordance with 29 CFR Section 2530.200b-2(b).  Each Hour of Service shall be attributed to
the Plan Year or initial eligibility year in which it occurs except to the
extent that the Company, in accordance with 29 CFR Section 2530.200b-2(c),
credits such Hour to another computation period under a reasonable method
consistently applied.

 

(c)           Where his Company’s records do not readily permit
determination of an Employee’s actual hours, Hours of Service before 1976 shall
be the product of

 

(i)                                     Forty, and

 

(ii)                                  The number of weeks in which he had an Hour
of Service.

 

(d)           Where his Company’s records or procedures do not
readily permit determination of an Employee’s actual hours, Hours of Service
may be credited under an equivalency method under which an Employee who is
customarily employed for at least thirty (30) hours per week throughout each
Plan Year (except for holidays and vacations) shall be credited with 190 Hours
of Service for each month in which he completes at least one (1) Hour of
Service in accordance with the provisions of this section (regardless of
whether the number of Hours of Service actually completed in such month exceeds
190).

 

13

 

(e)           Hours of Service shall include hours performed or paid
for by any company, which was then or subsequently became controlled by a
Company.

 

(f)            Notwithstanding any other provision of this Section 1.31,
the Hours of Service of each Employee who became a Participant in connection
with the Spinoff of Henley by Allied-Signal as of May 27, 1986 and who
participated in the Predecessor Plan on December 31, 1985 shall include
all Hours of Service under Section 1.25 of the Predecessor Plan.

 

Section 1.32           Investment
Committee.  “Investment Committee” shall mean the
Investment Committee designated by the Board of Directors to have the
investment responsibilities under the Plan described in Article VII.  Effective September 30, 1993, the Board
of Directors or its delegate shall serve as the Investment Committee.

 

Section 1.33           Insurance
Company.  “Insurance Company” shall mean any insurance
company selected by the Administrator to provide contracts of insurance or
annuity contracts to the Trustee for the purpose of funding benefits under the
Plan.

 

Section 1.34           Marriage.  “Marriage”
(and derivative terms such as “marital,” “married” and “marries”) shall, for
all purposes under this Plan, mean a relationship that is recognized as a
marriage under applicable federal laws.

 

Section 1.35           Military
Leave.  Any Employee who leaves the Company directly
to perform service in the Armed Forces of the United States or the United
States Public Health Service under conditions entitling him to reemployment
rights as provided in the laws of the United States, shall, solely for the
purposes of the Plan and irrespective of whether he is compensated by any
Company during such period of service be presumed an Employee on Military
Leave.  Such presumption shall cease to
apply if such Employee voluntarily resigns from the Company during such period
of service, or if he fails to make application for reemployment within the
period specified by such laws for the preservation of his reemployment
rights.  See, also Section 10.17
(Military Service) of this Plan document.

 

Section 1.36           RESERVED

 

Section 1.37           Normal
Retirement Benefit.  “Normal Retirement Benefit” shall mean the
Benefit payable under Section 3.2.

 

Section 1.38           Normal
Retirement Date.  “Normal Retirement Date” of a Participant or
Former Participant shall mean the first day of the calendar month coincident
with or next following his sixty-fifth birthday, on which date such Participant
or Former Participant shall be entitled to the Normal Retirement Benefit
provided in Section 3.2.

 

Section 1.39           Participant.  “Participant”
shall mean any person included in the Plan as provided in Article II, until
such time as such Participant has a Separation from the Service.

 

Section 1.40           Period
of Severance.  “Period of Severance” shall mean the period
of time commencing on the Severance from Service Date and ending on the date on
which an Employee again performs an Hour of Service within the meaning of 29
CFR § 2530.200b-2(a)(1).  Solely for
the purpose of determining whether a Period of Severance has occurred, in the
case of an Employee who is absent from work for maternity or paternity reasons,
a period of absence of two years or less shall not be taken into account.  An absence from work for maternity or
paternity reasons means an absence (i) by reason of the pregnancy
of the Employee, (ii) by reason of the birth of a child of the
Employee, (iii) by reason of the placement of a child with the
Employee in connection with the adoption of such child by such Employee, or (iv) for
purposes of caring for such child for a period beginning immediately following
such birth or placement.

 

14

 

Section 1.41           Plan. 
The “Plan” shall mean The Bolsa Chica Company Retirement Plan (formerly
known as the Henley Properties Inc. Retirement Plan and, prior to January 1,
1990, known as The Henley Group, Inc. Retirement Plan), as amended and
restated from time to time.  Effective December 31,
1993, “Plan” shall mean the Koll Real Estate Group Retirement Plan, as amended
and restated from time to time. 
Effective January 1, 1999, “Plan” shall mean the California Coastal
Communities, Inc. Retirement Plan, as amended and restated from time to
time.

 

Section 1.42           Plan
Enrolled Actuary.  The term “Plan Enrolled Actuary” shall mean
that person who is enrolled by the Joint Board for the Enrollment of Actuaries
established under subtitle C of Title III of ERISA and who has been engaged by
the Committee on behalf of all Participants to make and render all necessary
actuarial determinations, statements, opinions, assumptions, reports, and
valuations under the Plan as required by law or requested by the Administrator.

 

Section 1.43           Plan
Year.  “Plan Year” shall mean the calendar year,
including such years preceding the adoption of the Plan.

 

Section 1.44           Predecessor
Plan.  “Predecessor Plan” shall mean The Signal
Companies, Inc. Retirement Plan, as in effect on December 31, 1985.

 

Section 1.45           Related
Plan.  “Related Plan” shall mean the Pneumo Abex
Corporation Retirement Plan, the New Hampshire Oak, Inc. Retirement Plan,
the Wheelabrator Technologies Inc. Retirement Plan and the Fisher Scientific International
Inc. Retirement Plan.

 

Section 1.46           Retirement
Benefit.  “Retirement Benefit” shall mean either the
Early Retirement Benefit, the Normal Retirement Benefit, the Disability
Retirement Benefit or the Optional Retirement Benefit described in Article III.

 

Section 1.47           Separation
from the Service.  “Separation from the Service” of an Employee
shall mean his resignation, treatment as voluntarily terminated, discharge,
Normal Retirement, Disability Retirement or Early Retirement from the Company,
or his death.

 

Section 1.48           Severance
from Service Date.  “Severance from Service Date” shall mean the
earlier of (a) the date on which an Employee quits, retires, is
discharged, dies or is treated as voluntarily terminated, (b) the
date on which an Employee on Military Leave (i) voluntarily resigns
from the Company or (ii) in the case of an Employee on Military
Leave who fails to apply for reemployment, the day next following the last day
of the period specified by the laws of the United States for the preservation
of such Employee’s reemployment rights, (c) the day next following
the date of expiration of a period of educational leave, or (d) the
first anniversary of the first date of a period in which an Employee remains
absent from service (with or without 

 

15

 

pay) for any reason other than quit, retirement,
discharge, death or voluntary termination, such as vacation, holiday, sickness,
disability, leave of absence or layoff, provided that (e) with the
prior approval of the Company, the Severance from Service Date of an Employee
who receives salary continuation in respect of termination of employment may be
a date no earlier than the first anniversary, and no later than the second
anniversary, of the last date of a period during which salary continuation is
provided.  A one-year period of severance
is a 12 consecutive month period, beginning on the Severance from Service Date,
during which the employee does not perform an hour of service for the employer.

 

Section 1.49           Spinoff.  “Spinoff”
shall have the meaning assigned to such term in the Preamble to the Plan.

 

Section 1.50A       Spouse. 
For all purposes under this Plan, the terms “spouse” and “surviving
spouse” shall mean the individual recognized as an individual’s lawful husband
or lawful wife under applicable federal laws.

 

Section 1.50           Social
Security Retirement Age.  “Social Security Retirement
Age” means:

 

(i)                                     Age 65 with respect to any Employee who
was born before January 1, 1938;

 

(ii)                                  Age 66 with respect to any Employee who
was born after December 31, 1937 and before January 1, 1955; and

 

(iii)                               Age 67 with respect to any Employee who
was born after December 31, 1954.

 

Section 1.51           Trust.  “Trust”
shall mean the trust established pursuant to the Trust Agreement.

 

Section 1.52           Trust
Agreement.  “Trust Agreement” shall mean the trust
agreement under the Plan as it may be amended from time to time, providing for
the investment and administration of the Trust Fund.  By this reference the Trust Agreement is
incorporated herein.

 

Section 1.53           Trust
Fund.  “Trust Fund” shall mean the fund established
under the Trust Agreement by contributions made pursuant to the Plan and from
which any amounts payable under the Plan are to be paid.

 

Section 1.54           Trustee.  “Trustee”
shall mean the Trustee under the Trust Agreement.

 

Section 1.55           Vested
Retirement Benefit.  “Vested Retirement Benefit” shall have the
meaning given in Section 3.10.

 

16

 

Section 1.56           Vesting
Service.

 

(a)           The Vesting Service of a Participant shall mean the
aggregate number of whole year periods of service after he first became an
Employee and prior to any Period of Severance whether or not such periods of
service were completed consecutively.

 

(b)           The Vesting Service of a Participant shall also
include the following Periods of Severance: 
(i) a Period of Severance which begins as of the date the
Participant quits, is discharged or retires and ends within twelve months of
such date; and (ii) a Period of Severance which begins as of the
date of any absence from service for any reason not described in (i) above
which is then followed by a quit, discharge or retirement and which thereafter
ends within twelve months of the original absence.

 

(c)           The Vesting Service of a nonvested Participant who has
incurred a Period of Severance of one year or more and is subsequently
reemployed shall not include previously earned Vesting Service if, at the time
of such reemployment, the Period of Severance equals or exceeds the greater of
five (5) years or the previously earned Vesting Service (whether or not
consecutive).  For purposes of this
subsection, in the case of an Employee who is absent from work for maternity or
paternity reasons, the 12-consecutive-month period beginning on the first
anniversary of the first date of such absence shall not be counted as part of a
Period of Severance.  An absence from
work for maternity or paternity reasons means an absence (1) by
reason of the pregnancy of the Employee, (2) by reason of a birth
of a child of the Employee, (3) by reason of the placement of a
child with the Employee in connection with the adoption of such child by such
Employee, or (4) for purposes of caring for such child for a period
beginning immediately following such birth or placement.

 

(d)           Notwithstanding any other provision of this Section,
the Vesting Service of each Employee who became a Participant in connection
with the spinoff of Henley by Allied-Signal as of May 27, 1986 and who
participated in the Predecessor Plan on December 31, 1985 shall include
all Vesting Service under Section 1.49 of the Predecessor Plan.

 

(e)           For purposes of this Section, service with any member
of the controlled group of corporations of which the Company is a member
(within the meaning of section 414(b), (c) or (m) of the
Internal Revenue Code) shall be considered service as an Employee.

 

(f)            For purposes of this Section, service from January 1,
1990 through December 31, 1993 that is treated as ‘vesting service’ under
any Related Plan will be considered to be Vesting Service under this Plan.

 

(g)           For purposes of this Section, service of any employee
who is a leased employee to any employer aggregated under Code Section 414(b),
(c), or (m) will be credited whether or not such individual is eligible to
participate in the Plan.

 

17

 

ARTICLE II

 

ELIGIBILITY

 

Section 2.1             Requirements for Participation.

 

(a)           Any Employee

 

(i)                                     who

 

(A)                              was actively employed on January 1,
1986 by Henley or a business that became a subsidiary or division of Henley in
connection with the Spinoff of Henley by Allied-Signal as of May 27, 1986;
or

 

(B)                                was actively employed on January 1,
1986 by a member of the Allied-Signal controlled group of corporations and
became an Employee in connection with the Spinoff; and

 

(ii)                                  who was a participant in the Predecessor
Plan on December 31, 1985, shall be a Participant in this Plan as of January 1,
1986.

 

(b)           Any Employee who

 

(i)                                     on the first day of any calendar month
after December 1985 an Employee shall become a Plan Participant if he or
she has completed either one three hundred sixty-five day period commencing
with the first day for which he is entitled to be credited with an Hour of
Service within the meaning of 29 CFR § 2530.200b-2(a)(1) upon
employment or reemployment, or one calendar year commencing with or after such
first period, during which three hundred sixty-five day period or year he had
completed one thousand or more Hours of Service as an Employee, and

 

(ii)                                  is not

 

(A)                              an Employee in a division of a Company as
to which the Plan has not been adopted, or a Company as to which the Plan was
adopted only for positions or classifications excluding the Employee, or

 

(B)                                an Employee in a bargaining unit covered
by a collective bargaining agreement in existence on March 4, 1975 (unless
such agreement provided for coverage hereunder of Employees in such unit) or a
bargaining unit which becomes covered by a collective bargaining agreement
after such date, with respect to which retirement benefits were the subject of
good faith bargaining (unless such agreement provides for coverage hereunder of
Employees in such unit), or

 

18

 

(C)                                a citizen of a country other than the
United States and a resident of a country other than the United States, or

 

(D)                               a citizen of a country other than the
United States and an Employee of any Company determined by the Administrator to
be predominantly involved in international operations, unless the Administrator
otherwise determines that such Employee is eligible to participate in this
Plan, on the basis of uniform standards applied in a nondiscriminatory manner
to all Employees similarly situated, shall be eligible to become a
Participant.  Service rendered for a
member of the Allied-Signal controlled group of corporations prior to May 27,
1986 by an Employee who was eligible to become a participant in the Predecessor
Plan on December 31, 1985, became an Employee in connection with the
spinoff of Henley by Allied-Signal and was actively employed on January 1,
1986 by a member of the Allied-Signal controlled group of corporations shall be
considered service as an Employee for purposes of this subsection.

 

(c)           For purposes of determining eligibility to participate
in the Plan under this Section 2.1, service with any member of the
controlled group of corporations of which the Company is a member (within the
meaning of section 414(b), (c) or (m) of the Code) shall be
considered service as an Employee.

 

(d)           Effective January 1, 1990, for purposes of
determining eligibility to participate in the Plan under this Section, service
from January 1, 1990 through December 31, 1993 that is counted toward
eligibility under any Related Plan shall be considered service as an Employee.

 

Section 2.2             Termination of Participation.  A Participant
shall cease to be a Participant on the date on which he is deemed to have
Separated from the Service.  A Former
Participant who returns to the employ of the Company shall be reinstated as a
Participant immediately and his Credited Service and Vesting Service as of such
date shall be calculated in accordance with the rules in Section 1.19
and Section 1.56, respectively.

 

Section 2.3             Forfeitures.  If a Participant has a Separation from the
Service for any reason prior to his acquisition of a Vested Retirement Benefit,
his Accrued Benefit shall be forfeited when his continuous Period of Severance
equals or exceeds the greater of five (5) years or his previously earned
Vesting Service (whether or not completed consecutively).

 

19

 

Section 2.4             Freeze.  Notwithstanding anything to the contrary in
the Plan, there shall be no new Participants in the Plan after December 31,
1993, and any Employees who would otherwise commence their participation in the
Plan after December 31, 1993 shall not be eligible for such participation
and shall not accrue any retirement or other benefits under the Plan.  Accordingly, the participant group in the
Plan shall be fixed and frozen as of December 31, 1993.

 

ARTICLE III

 

RETIREMENT,
TERMINATION, OR DEATH

 

Section 3.1             Normal Retirement.  A Participant may retire on
his Normal Retirement Date or the first day of any month thereafter.

 

Section 3.2             Normal Retirement Benefit.

 

(a)           A Participant who retires on or after his Normal
Retirement Date shall receive a Normal Retirement Benefit which shall not be
less than the Participant’s Accrued Benefit and shall consist of a monthly
payment commencing on the first day of the month coincident with or next
following the date he retires and ending with the month in which his death
occurs.

 

(b)           Effective January 1, 1990, except as provided in
subsections (c) through (i), his Normal Retirement Benefit shall be the
greater of (A) the sum of (i) , (ii) and (iii), less (iv), and (B) the
sum of (i) , (ii) and (iii) determined without regard to the
Credited Service described in Section 1.19(a)(v) or the Compensation
described in Section 1.16(h):

 

(i)                                     1.1% of his Average Final Compensation up
to Covered Compensation multiplied by his Credited Service (but not more than
35 years);

 

(ii)                                  1.5% of his Average Final Compensation in
excess of Covered Compensation multiplied by his Credited Service (but not more
than 35 years);

 

(iii)                               1.5% of his Average Final Compensation
multiplied by Credited Service in excess of 35 years.

 

(iv)                              His “normal retirement benefit” payable
under any Related Plan which is based on Credited Service described in Section 1.19(a)(v).

 

(c)           A Participant’s Normal Retirement Benefit shall not

 

(i)                                     except as provided in subsections (c) through
(i), be less than 1.25% of his Average Final Compensation multiplied by his
Credited Service; provided, however, that for this purpose Average Final
Compensation shall be computed by taking into account only the Compensation
described in subsections 1.16(a)(i) and (iii) of this Plan, provided
that

 

20

 

(ii)                                  in the case of a Participant who had his
Separation from the Service at the time he was employed at the La Jolla
facility or the Hampton facility of the Company, be less than the greater of (A) his
Normal Retirement Benefit calculated in accordance with subsection(i) above
or (B) the greater of (1) $20.00 times his Credited Service or (2) 1%
of his Average Final Compensation multiplied by his Credited Service.

 

(d)           Notwithstanding anything in the Plan to the contrary,
in no event shall a Participant’s or Former Participant’s monthly Benefit
payment under Section 3.2, 3.5, 3.4(b) or 3.10 be less than the
largest monthly Benefit payment under Section 3.4(b) to which he
could have become entitled by electing, at any time, Early Retirement under Section 3.3.

 

(e)           In the case of an Employee of a Company who was a
participant on December 31, 1983 in a plan which merged with the
Predecessor Plan on January 1, 1984, the provisions of which plan require
any adjustments for additional benefits, offset benefits, predecessor plan
benefits or, except in the case of UOP Realty Development Company, any amounts
representing employee contributions which are withdrawn by the Participant at
retirement, such adjustments shall be applied in the manner specified in such
plan against the Normal Retirement Benefit provided under subparagraph (b) to
determine the amount payable hereunder to such participant.

 

(f)            In the case of an Employee other than an Employee of
UOP Realty Development Company who was a participant on December 31, 1983
in a plan which merged with the Predecessor Plan on January 1, 1984, who
made employee contributions to any retirement plan or any other pension or
profit sharing plan of any Company which contribution increased the amount of
any retirement benefit payable under such plans, the provisions of such plans
in effect on December 31, 1983 shall govern the timing and manner of the
payment of such contributions or benefits provided, however, that the interest
rate used to accumulate such employee contributions after December 31,
1983 shall in no event be less than the interest rate provided in the
definition of Actuarial Equivalent under this Plan and the accumulated amount
at retirement will be converted to an annuity using the lump sum factor
described in Section 3.8.

 

(g)           The Normal Retirement Benefit of any Participant who
was transferred from a Company described in (c)(i) to a Company described
in (c)(ii) or from a Company described in (c)(ii) to a Company
described in (c)(i) shall be calculated as though the Employee had, at all
times, been employed by his Employer on the date of his Separation from the
Service, provided that in no event will his Normal Retirement Benefit be less
than his Accrued Benefit on the date of any transfer.

 

(h)           The Benefit of a Participant who elects an Optional Retirement
Benefit under Section 3.6 and the Benefit of a Participant who is married
on his Normal or Early Retirement Date and has not elected not to receive the
automatic Statutory Joint and Survivor Annuity provided under Section 3.7,
shall be determined under the provisions of Section 3.6 or 3.7,
respectively.

 

21

 

(i)            In the case of an Employee who made contributions to
any retirement plan sponsored by UOP, Inc., which merged with the
Predecessor Plan on January 1, 1984, which contributions were not
withdrawn prior to or as of his Normal Retirement Date, the Normal Retirement
Benefit payable under this section shall be increased by the amount of such
contributions accumulated to such date at the interest rate applicable under
the prior plan (but after December 31, 1983, in no event less than the
interest rate specified in the definition of Actuarial Equivalent hereunder)
expressed as the actuarial equivalent of a single life annuity.

 

Section 3.3             Early Retirement.

 

(a)           A Participant may voluntarily retire on his Early
Retirement Date upon written notice to the Administrator designating such
date.  A Participant who undergoes a
Separation from the Service after he has qualified for Early Retirement may
elect to have Benefits commence in accordance with this Section at or
after such Separation, and the designated effective date of such election shall
be his Early Commencement Date.

 

(b)           Notwithstanding the foregoing, any Employee who was
eligible to retire as of December 31, 1985 under the terms of the
Predecessor Plan shall be eligible to retire under this Plan.

 

(c)           Notwithstanding the foregoing, any Employee or former
Employee who was an employee participating on December 31, 1983 in the UOP
Pension Plan, or in any like plan maintained by UOP, Inc. on such date, or
any Employee who would otherwise have become a participant in such a plan upon
completing the applicable eligibility requirements, shall be eligible to retire
on or after his fifty-fifth birthday and the completion of five years of
Vesting Service.

 

(d)           Notwithstanding the foregoing, any Employee or former
Employee who was a Participant on December 31, 1983 in the Signal
Retirement Plan (as defined in the Predecessor Plan) shall be entitled to
retire under this Plan with respect to his Accrued Benefit as of December 31,
1988 at the time and using the reduction factors specified in the Signal
Retirement Plan in effect on such date.

 

Section 3.4             Early Retirement Benefit.

 

(a)           A Participant who retires on his Early Retirement
Date, or Former Participant who at the time of his Separation from the Service
has qualified for Early Retirement, shall receive a benefit which shall be no
less than his Accrued Benefit provided under Section 3.10(c),
appropriately reduced, as provided under Section 3.4(b)(ii) and,
subject to the provisions of Sections 3.6 and 3.7, shall consist of a
monthly payment commencing upon his Early Commencement Date and ending with the
month in which his death occurs.

 

(b)           The amount of each such monthly payment shall, subject
to Section 3.2(d), be an amount determined by reducing

 

22

 

(i)                                     his Normal Retirement Benefit, computed
under Section 3.2(b) on the basis of his Credited Service completed
prior to his Early Retirement Date plus the number of years and fractional
years from his Separation from the Service to his Normal Retirement Date,
multiplied by a fraction, the numerator of which is his Credited Service and
the denominator of which is his Credited Service plus the number of years and
fractional years from his Separation from the Service to his Normal Retirement
Date, and under Section 3.2(c) on the basis of his Credited
Service completed prior to his Early Retirement Date, by

 

(ii)                                  1/3 of 1% for each of the first 60 months
(if any) by which his Early Commencement Date precedes the first day of the
month coincident with or next following his 60th birthday; provided, however,
that for Participants who attain age 55 in the year 2009 or later, the
reduction factor provided for under this subparagraph (ii) shall be
equal to 1/3 of 1% for each of the first 36 months and 5/12 of 1% for each
additional month up to 24 months (if any) by which his Early Commencement Date
precedes the first day of the month coincident with or next following his 60th
birthday.

 

(c)           An Employee or former Employee who was a Participant
in the Signal Retirement Plan (as defined in the Predecessor Plan) on December 31,
1983 shall, in addition to the monthly payment provided in subparagraph (b) above,
receive a temporary additional Early Retirement Benefit of $150.00 per month
ending with the earliest of the month in which he dies, the month before his
62nd birthday or the date of eligibility for full or reduced Social Security
benefits.

 

(d)           In the case of an Employee who is eligible to retire
before age fifty-five by virtue of subparagraph (b) or (d) of Section 3.3,
the Early Retirement Benefit payable hereunder shall be further reduced before
age fifty-five by an Actuarial Equivalent reduction factor for the months, if
any, by which his Early Commencement Date precedes the first day of the month
coincident with or next following his fifty-fifth birthday.

 

(e)           In the case of an Employee who made contributions to
any retirement plan sponsored by UOP, Inc., which merged with the
Predecessor Plan on January 1, 1984, which contributions were not
withdrawn prior to or as of his Early Retirement Date, the Early Retirement
Benefit payable under this section shall be increased by the amount of such
contributions accumulated to such date at the interest rate applicable under
the Predecessor Plan (but after December 31, 1983, in no event less than
the interest rate specified in the definition of Actuarial Equivalent
hereunder) expressed as the actuarial equivalent of a single life annuity.

 

Section 3.5             Disability Retirement Benefit.

 

(a)           A Participant who has at least ten years of Credited
Service at his date of Disability, and who retires on his Disability Retirement
Date prior to December 31, 1993, may elect, in a manner prescribed by the
Committee, to receive a Disability Retirement Benefit which 

 

23

 

shall be no less than his Accrued Benefit,
appropriately reduced, as provided under Section 3.10(c) and, subject
to the provisions of Sections 3.6 and 3.7, shall consist of a monthly
payment on the first day of each calendar month commencing with his Disability
Retirement Date and ending with the month in which his death occurs or, if
earlier, the month in which his Disability ceases.

 

(b)           The amount of each such monthly payment shall be the
greater of (x) the amount computed by reducing (i) his Normal
Retirement Benefit, computed under Section 3.2(b) on the basis of his
Credited Service completed prior to his Disability Retirement Date multiplied
by a fraction, the numerator of which is his Credited Service, and the
denominator of which is his Credited Service plus the number of years and
fractional years from his Disability Retirement Date to his Normal Retirement
Date, by (ii) 1/3 of 1% for each of the first 60 months (if any) by
which his Disability Retirement Date precedes his 60th birthday, provided,
however, that for Participants who attain age 55 in the year 2009 or later, the
reduction factor shall be 1/3 of 1% for each of the first 36 months and 5/12 of
1% for each additional month up to 24 months (if any) by which his Disability
Retirement Date precedes his 60th birthday; and with an Actuarial Equivalent
reduction factor applied for each month in excess of such first 60 months, or (y) the
amount of his Normal Retirement Benefit computed under Section 3.2(c)(i) or
(ii) on the basis of Credited Service completed prior to his Disability
Retirement Date, whichever is applicable to such Participant, reduced by the
amount referred to in (x)(ii) of this Section 3.5(b), but with such
reduction limited to 50%.

 

(c)           If a Former Participant’s Disability ceases and he
thereupon again becomes an Employee his Disability Retirement Benefit shall
cease and he shall resume status as a Participant.  Such Former Participant shall accrue Credited
Service in accordance with the terms of the Plan for any period prior to his
Normal Retirement Date after resuming status as a Participant.  The Normal Retirement Benefit payable to such
Participant on his Normal Retirement Date shall be redetermined by taking into
account total Credited Service including the period of disability,
Compensation, etc. as required by the terms of the Plan and benefits already
paid hereunder.

 

(d)           In the case of an Employee who made contributions to
any retirement plan sponsored by UOP, Inc., which merged with the
Predecessor Plan on January 1, 1984, which contributions were not
withdrawn prior to or as of his Disability Retirement Date, the Disability
Retirement Benefit payable under this section shall be increased by the amount
of such contributions accumulated to such date at the interest rate applicable
under the prior plan (but after December 31, 1983, in no event less than
the interest rate specified in the definition of Actuarial Equivalent
hereunder) expressed as the actuarial equivalent of a single life annuity.

 

Section 3.6             Optional Retirement Benefit.

 

(a)           A Participant or Former Participant entitled to
receive a Normal or Early Retirement Benefit or a Participant who is entitled
to receive a Disability Retirement Benefit, shall generally receive the joint
and survivor annuity provided in Section 3.7 (so long as such Participant
is otherwise described in Section 3.7), unless such Participant elects not
to receive such annuity and elects instead to receive a distribution in a form
specified in subsections (i), (ii), (iii) or (iv) below.  In addition, to be effective, any election
made under this Section 3.6 must be 

 

24

 

made by the Participant himself, must be in writing on
a form prescribed by the Administrator, must name the Beneficiary if a form of
joint annuity is chosen, must be signed by the Participant and, if required by
the Administrator, by the Participant’s spouse and must be filed with the
Administrator prior to the date his benefits are to commence.  A Participant to whom Section 3.7 does
not apply and who makes no written election under this Section shall
receive a Benefit in accordance with subsection (i) below.  A Participant may elect, in accordance with
the requirements of the Administrator, to receive his Benefit in any one of the
following manners:

 

(i)                                     A Normal, Early or Disability Retirement
Benefit, as the case may be, in the form of a single life annuity,

 

(ii)                                  A reduced monthly Benefit payable during
his Normal, Early or Disability Retirement Benefit period with the provision
that if he dies after his Normal, Early, or Disability Retirement Date, as the
case may be, survived by his properly designated Contingent Annuitant, such
Contingent Annuitant shall receive a monthly Benefit in the same amount (or in
50%, 66 2/3% or 75% of that amount if the Participant shall so elect) until the
first day of the calendar month in which the Contingent Annuitant’s death
occurs provided, however, that if the Contingent Annuitant is
other than the Participant’s spouse, not less than 50% of the actuarial value
of the Participant’s Normal, Early, or Disability Retirement Benefit must be
applied to provide Benefits payable to the Participant during his life under
this subsection.  (This election shall
not take effect if the Contingent Annuitant does not survive until the
commencement of payments under this subsection),

 

(iii)                               An increased retirement benefit payable
during the Participant’s lifetime until age 62, decreased after age 62 by the
expected Social Security Benefit and payable at such reduced rate during the
remainder of the Participant’s life, so as to produce, as nearly as possible, a
level retirement income.  Such benefit
shall be payable, at the Participant’s option, in the form of a life annuity or
a contingent annuity with 50%, 66 2/3%, 75% or 100% payable to the Participant’s
designated Contingent Annuitant in the event of the Participant’s death and
until the first day of the calendar month in which the Contingent Annuitant’s
death occurs, provided, however, that notwithstanding anything to
the contrary in this Plan, effective January 1, 1985, distributions will
be made in accordance with the Regulations under Code Section 401(a)(9),
including the minimum distribution incidental benefit requirement of Code Section 401(a)(9)(G).
(An election of a benefit payable to a Contingent Annuitant pursuant to this
section shall not take effect if the Contingent Annuitant does not survive
until the commencement of payments under this subsection), or

 

25

 

(iv)                              A reduced retirement benefit payable
during the Participant’s life, with a guarantee that not less than a fixed
number of payments will be made to the Participant or, if the Participant dies
prior to the expiration of such fixed number of years, to the Participant and
the Participant’s Beneficiary, in the aggregate.  The Participant may select a guarantee of 60,
120 or 180 payments.  If a Participant
elects this option, the Participant shall also designate the Beneficiary to
whom monthly payments will be continued if the Participant dies before having
received the fixed number of payments. 
The Participant shall (subject to the consent requirements of this
Section) have the right to change such Beneficiary prior to the Participant’s
annuity starting date upon giving notice in writing to the Administrator.  If a Participant elects this option and dies
in active employment with a Company, the Beneficiary will not be entitled to
any rights or benefits under the Plan, except in accordance with Section 3.9
hereof.

 

(b)           Notwithstanding (i) , (ii), (iii) or (iv) above,
the payment of the Actuarial Equivalent of any stream of payments or of any
annuity paid to Beneficiaries shall be paid pursuant to the requirements of Section 3.15.

 

(c)           A Former Participant entitled to a Normal Retirement
Benefit in a form prescribed in this section or pursuant to Section 3.7
who has previously left the employ of the Company shall be notified of such
entitlement as provided in Section 10.8 of the Plan.

 

(d)           Subject to the foregoing provisions of this Section 3.6
and to the provisions of Section 3.7, a Participant or Former Participant
who (i) made employee contributions to the UOP Pension Plan prior to January 1,
1984, (ii) elects after October 1, 1988 and prior to March 1,
1990 to withdraw all such contributions with accrued interest, and (iii) has
an accrued benefit under the Plan immediately following such withdrawal the
present value of which (determined using the Actuarial Equivalent definition
applicable to small benefit cashouts under Section 3.13) is equal to
$5,000 or less, may elect to receive an immediate lump sum distribution of such
remaining accrued benefit.

 

Section 3.7             Statutory Joint and Survivor Annuity.

 

(a)           Notwithstanding anything in the Plan to the contrary,
the Benefit, if any, of a Participant or Former Participant commencing on his “Annuity
Starting Date” (meaning either the first day of the first period with respect
to which an amount is received as a life annuity; or in the case of a benefit
not payable in the form of an annuity, the first day on which all events have
occurred which entitle the Participant to an annuity) shall be a statutory
joint and survivor annuity which is immediately available, as described in
subsection, if

 

(i)                                     he was married upon his Annuity Starting
Date,

 

(ii)                                  he notified the Administrator in writing
prior to his Annuity Starting Date that he was married, and

 

26

 

(iii)                               he has not otherwise elected under
subsection.

 

(b)           The joint and survivor annuity of a Participant or
Former Participant shall be a Benefit, reduced as provided in subsection,
consisting of monthly payments to him beginning on his Annuity Starting Date
and ending with the calendar month in which his death occurs with the provision
that, if he dies after his Annuity Starting Date survived by the spouse to whom
he was married on his Annuity Starting Date, such spouse shall receive monthly
payments of fifty percent of such reduced Benefit beginning on the first day of
the calendar month following the month in which the Participant or Former
Participant dies.  Payments to such
Participant’s or Former Participant’s spouse continue until the first day of
the calendar month following the spouse’s death.  For the avoidance of doubt, Participants may
receive a reduced monthly amount during their lifetime and, after their death,
50%, 66-23%, 75% or 100% of that amount will be paid to the Participant’s
spouse or to another named contingent annuitant.

 

(c)           The reduced Benefit payable under this Section to
a Participant or Former Participant during his lifetime shall be at a monthly
rate such that his joint and survivor annuity is the Actuarial Equivalent of
his Disability, Early or Normal Retirement Benefit, as the case may be.

 

(d)           A Participant or Former Participant referred to in
subsection (a) may elect in writing, in the manner prescribed by the
Administrator and with the consent of such Participant’s or Former Participant’s
spouse, if required by the Administrator, not to receive a joint and survivor
annuity (in which case he shall receive his Benefit as otherwise provided in
the Plan).  Such an election must satisfy
the requirements of Section 3.14(b). 
Such an election shall be made not earlier than:

 

(i)                                     90 days before the commencement of the
distribution of any part of an Accrued Benefit under this Plan,

 

and not later than the later of

 

(ii)                                  his Annuity Starting Date, or

 

(iii)                               the ninetieth (90th) day after the
mailing or personal delivery to him of information referred to in
subsection 3.7(e).

 

Such an election may be revoked, or revoked and
re-elected, at any time during the applicable election period described in this
subsection 3.7(d).  A Participant
may request additional information regarding the notices he receives under
subsection 3.7(e).  However, such a
request for additional information must be made within 60 days after the
notices have been mailed or personally delivered.  Should a Participant request additional
information, then the applicable election period described in this
subsection 3.7(d) shall be extended so that it ends 90 days after the
requested additional information has been mailed or personally delivered to the
Participant.  If a Participant (i) has
separated from service, (ii) is entitled to receive or is currently
receiving a Qualified Joint and Survivor Annuity under Code Section 401(a)(11),
and (iii) has not had an election described in this
subsection 3.7(d) made available to him, then the Plan shall provide
to such a Participant an election to receive the balance of his benefits in the
form of an Optional Retirement Benefit, described in Section 3.6.  Such a Participant shall have 90 days after
notice of the election is mailed or personally delivered to him in which to
make the election described in the preceding sentence.  If the Participant has died, then the
election shall be made available to the Participant’s personal
representative.  The balance of the
Participant’s benefits distributed under such an election may be adjusted, if
applicable, for payments previously distributed in the form of a Qualified
Joint and Survivor Annuity.

 

27

 

(e)           Each Participant or Former Participant shall receive
from the Administrator nontechnical explanations of the availability and
consequences of the election provided hereunder at such time and in such a
manner so as to comply with all Internal Revenue Service Regulations that may
be promulgated in this regard.

 

(f)            During the period described in subsection, a
participant or Former Participant who properly elected thereunder not to
receive a joint and survivor annuity may revoke such election and after any
such revocation, an election under subsection ay be made again prior to the
expiration of such election period.

 

(g)           Notwithstanding the foregoing, a Participant may,
after receiving the written explanation described in subsection (e) above
(“Notice”), affirmatively elect (with spousal consent if necessary) to have his
or her benefit commence (annuity starting date) sooner than 30 days following
receipt of the Notice, provided all of the following 5 requirements are met:

 

(i)                                     The Administrator (or its delegate)
clearly informs the Participant that he or she has a period of at least 30 days
after receiving the Notice to decide when to have his or her benefit begin and,
if applicable, to choose a particular optional form of payment;

 

(ii)                                  The Participant affirmatively elects a
date for benefits to begin and, if applicable, an optional form of payment,
after receiving the Notice;

 

(iii)                               The Participant is permitted to revoke
his or her election until the later of the annuity starting date or 7 days
following the date the Participant received the Notice;

 

(iv)                              The Participant’s annuity starting date
is after the date the Notice is provided (however the annuity starting date may
be before the expiration of the 7-day period referred to in item (v), below and
before the date of the Participant’s affirmative distribution election); and

 

(v)                                 Payment does not commence less than 7
days following the day after the Notice is received by the Participant.

 

28

 

Section 3.8             Actuarial Equivalence.

 

The Participant’s Optional Retirement Benefit under Section 3.6
or the Benefit provided under Section 3.7 shall be the Actuarial
Equivalent of his Normal, Early, or Disability Retirement Benefit, said
Equivalent being computed as of the date payments commence.

 

Section 3.9             Death Benefit - Qualified Preretirement Survivor Annuity.

 

(a)           If a Participant dies after becoming eligible for an
Early Retirement Benefit while he is an Employee (including a Participant who
was so eligible, was Disabled and did not elect to receive a Disability
Retirement Benefit and a Former Participant who was eligible at the time of his
Separation from the Service to receive Early Retirement Benefits, but who
elected to defer his Early Commencement Date beyond such Separation from the
Service), and is survived by a spouse, such spouse shall receive a Benefit
equal to one-half of the amount such Participant would have received (other
than pursuant to Section 3.4(e)) had he retired immediately preceding his
death and had he elected to receive a single life annuity.

 

(b)           Subject to the limitation imposed by Section 3.6(b),
in the event of the death of a Participant who is not survived by a spouse (or
if the spouse dies after Benefits described in subparagraph (a) above
have commenced) but is survived by one or more children of the Participant
under the age of 21, each periodic payment of the Benefit described in
subparagraph (a) above shall be paid in equal shares among all of
such children who are under the age of 21 at the time of such payment, and
shall continue to be paid until the last of such children either attains age 21
or dies.

 

(c)           Notwithstanding the foregoing and subject to the
limitation imposed by Section 3.6(b), in the case of an Employee other
than an Employee of UOP Realty Development Company who was a Participant on December 31,
1983 in a plan which merged with the Predecessor Plan on January 1, 1984,
the Death Benefit payable hereunder to a Participant’s spouse or beneficiary
shall in no event be less than the amount of any employee contributions made to
such plans, accumulated to the earlier of the date benefits commence payment or
the Participant’s Normal Retirement Date, at the interest rate applicable under
the Predecessor Plan (but after December 31, 1983, in no event less than
the interest rate specified in the term Actuarial Equivalent under this Plan),
less any benefits received by the Participant or Beneficiary.

 

(d)           In the case of an Employee who was a participant on December 31,
1983 in a plan which merged with the Predecessor Plan on January 1, 1984
which provided for the payment of a death benefit to the surviving spouse of
any Employee who died after a stated period of service, a Death Benefit shall
be payable hereunder to the surviving spouse of such an Employee in an amount
equal to the greater of the amount which would have been payable to such spouse
had such Employee died on December 31, 1983 or the Death Benefit payable
under subparagraph (a) .

 

29

 

(e)           In the case of the death of any Employee or former
Employee who made contributions to any retirement plan sponsored by UOP, Inc.
which was merged with the Predecessor Plan on January 1, 1984, and the
death of any and all persons to whom benefits were being paid under Section 3.6
or 3.7 on behalf of the Employee following the Employee’s death, there shall be
paid in a lump sum to the Beneficiary of the Employee the amount of any
contributions made to such plan by the Employee accumulated to the earlier of
the date benefits commence payment or the Employee’s Normal Retirement Date at
the interest rate applicable under such plan, but after December 31, 1983
in no event at a rate less than the interest rate specified in the definition
of Actuarial Equivalent under this Plan, less any benefits paid with respect to
such contributions to the Employee and to such other person or persons under Section 3.6
or 3.7, except that if benefits are payable under Section 3.9(a) following
the Employee’s death, the amount of such contributions accumulated with
interest as provided for above shall be paid to the Employee’s spouse in the
form of an actuarial equivalent life annuity based on such spouse’s age at the
date of death of the Employee unless such spouse shall elect in writing to
receive such contributions in the form of a lump sum payment.

 

(f)            If a Participant who has fulfilled the requirements
for a Vested Retirement Benefit dies before his entire Benefit has been paid to
him and before the earliest date which the Participant could have designated as
his Early Retirement Date, or if a Former Participant who has fulfilled the
requirements for a Vested Retirement Benefit dies before his Benefit commences
payment, his surviving spouse, if any, shall be entitled to receive the greater
of the benefits, if any, described in subsection 3.9(d) above or benefits
having the effect of a Qualified Preretirement Survivor Annuity, as described
below, unless such spouse had not been married to the Participant or Former
Participant for at least one year at the time of his death.  The benefits payable to the spouse of a
Participant (or Former Participant) who dies before the earliest date which the
Participant could have designated as his Early Retirement Date shall commence
with the month in which the Participant would have reached the earliest date
which could have been designated as his Early Retirement Date or the first day
of any month thereafter up to and including the first day of the month next following
the date on which the Participant would have attained age 65, as elected by the
spouse, and shall be equal to one half of the amount which would have been
payable to such Participant if he had (a) separated from service on the
date of death; (b) survived to the earliest date which could have been
designated as his Early Retirement Date or the first day of any month
thereafter, as elected by the spouse and (c) commenced payment on such
date with an immediate straight life annuity. 
The benefit payable to the spouse of a Former Participant who dies after
the earliest date which the Former Participant could have designated as his
Early Commencement Date but before his Benefit commences payment shall commence
with the month following the date of death or the first day of any month
thereafter up to and including the first day of the month next following the
date on which the Participant would have attained age 65, as elected by the
spouse, and shall equal to one half the amount which would have been payable to
such Former Participant if he had commenced payment with an immediate straight
life annuity on the day before such Former Participant’s death or the first day
of any month thereafter up to and including the first day of the month next
following the date on which the Participant would have attained age 65, as
elected by the spouse.

 

(g)           Except as expressly herein provided, no Benefit shall
be payable hereunder upon the death of a Participant or Former Participant.

 

(h)           If the spousal benefit described above is not fully
subsidized, the Participant may waive the spousal benefit described above by
following the procedures described below.

 

30

 

(i)                                     Notice.  During the
Applicable Period (defined below), the Committee will provide the Participant
with an explanation of the terms and conditions of the spousal benefit, the
Participant’s right to make, and the effect of, an election to waive the
spousal benefit, the rights of the Participant’s spouse to approve such a
waiver, the Participant’s right to revoke such a waiver at any time before the
Participant’s death and the effect of the Participant’s right to revoke such a
waiver.

 

(ii)                                  Procedure.  A Participant’s
waiver of the spousal benefit must be made on a form prepared by, and delivered
to the Committee during the period (“Applicable Period”) that begins with the
first day of the Plan Year in which the Participant attains age 35 and ends
with the death of the Participant; provided, however, if a Participant ceases
to be an Employee before the first day of the Plan Year in which the
Participant attains age 35, this period will begin on the day the Participant
ceases to be an Employee.  A Participant
may revoke such a waiver at any time before the first to occur of the
Participant’s Annuity Starting Date or the Participant’s death by delivering a
subsequent form to the Committee that satisfies the waiver provisions of this
Plan.

 

(iii)                               Spousal Consent. 
The Participant’s surviving spouse must waive any rights to the spousal
benefit in a written document that acknowledges the effect of the waiver, and
that is witnessed by a notary public or, to the extent permitted by the
Company, by a Company representative. 
Spousal consent will be irrevocable; provided, however, that spousal
consent will be deemed to be revoked if the Participant changes his or her
waiver election.

 

(iv)                              Waiver Unnecessary. 
If the Participant is legally separated or abandoned (within the meaning
of local law) and the Participant has a court order to that effect (and there
is no Qualified Domestic Relations Order as defined in Code Section 414(p) that
provides otherwise), or the surviving spouse cannot be located, then the waiver
described in the preceding paragraph need not be filed with the Committee when
a married Participant waives a spousal benefit under this Plan.

 

(v)                                 Effect of Waiver. 
Any waiver by a spouse obtained pursuant to these procedures (or
establishment that the consent of a spouse could not be obtained) will be
effective only with respect to that spouse.

 

(i)            The surviving spouse need not begin receiving a
qualified preretirement survivor annuity prior to the time the Participant
would have attained age 65 except where the present value of the nonforfeitable
benefit does not exceed $5,000.

 

31

 

Section 3.10           Vested
Retirement Benefit.

 

(a)           Each Participant who has completed five (5) years
of Vesting Service or who has reached his Normal Retirement Date while an
Employee shall be entitled to a Vested Retirement Benefit equal to his Accrued
Benefit.  In the event of his Separation
from the Service prior to his Normal, Early or Disability Retirement Date, a
vested Former Participant shall, upon the earlier of his Normal Retirement Date
or his attainment of age 55 (or applicable earlier retirement age) become
entitled to receive a Normal, Early but with an Actuarial Equivalent early
reduction factor applied or Optional Retirement Benefit as he shall elect (or
in the absence of such election, as determined in the manner of Section 3.2,
3.4 or 3.7), all in an amount equal or Actuarially Equivalent to his Accrued
Benefit payable at age 65.  In addition,
any Employee or former Employee who was a Participant in the Signal Retirement
Plan (as defined in the Predecessor Plan) on December 31, 1983 and who
completes five years of Vesting Service and attains his thirty-fifth birthday,
shall be entitled to a Vested Retirement Benefit equal to his Accrued Benefit
as of such date.  In the event of his
Separation from the Service prior to his Normal, Early, or Disability
Retirement Date, a vested Former Participant shall upon his Normal or Early
Retirement Date become entitled to a Normal, Early but with an Actuarial
Equivalent early reduction factor applied or Optional Retirement Benefit as he
shall elect (or in the absence of such election, as determined in the manner of
Section 3.2, 3.4, or 3.7), all in an amount equal or Actuarially
Equivalent to his Accrued Benefit payable at age 65.

 

(b)           An Employee’s “Accrued Benefit” as of his Separation
from the Service shall be equal to his Normal Retirement Benefit computed under
Section 3.2(b) on the basis of his Credited Service completed prior
to such Separation plus the number of years and fractional years from the date
of such Separation to his Normal Retirement Date, multiplied by a fraction, the
numerator of which is his Credited Service and the denominator of which is his
Credited Service plus the number of years and fractional years from the date of
such Separation to his Normal Retirement Date, and under Section 3.2(c) on
the basis of his Credited Service completed prior to such Separation.

 

(c)           Notwithstanding the foregoing, the “Accrued Benefit”
of a non highly compensated Participant shall not be less than his Accrued
Benefit computed under the terms of the Plan immediately prior to April 30,
1991, the adoption date of a prior amended and restated version of the
Plan.  The “Accrued Benefit” of any
highly compensated Participant shall not be less than his Accrued Benefit on December 31,
1988.  The Accrued Benefit of any person
who becomes a highly compensated person after December 31, 1988 shall not
be less than his Accrued Benefit as of December 31 of the year prior to
the year in which he becomes a highly compensated participant.

 

(d)           An Employee or former Employee who made contributions
to any retirement plan sponsored by UOP, Inc. which was merged with the
Predecessor Plan on January 1, 1984 may, by written election at any time
after Separation from the Service and prior to or as of the date any monthly
benefit first becomes payable hereunder, withdraw such contributions with
interest at the rates specified in Section 3.2(i) above, accumulated
to the end of the calendar month immediately preceding the date of such written
election.

 

32

 

(e)           If the present value of the Participant’s vested
Accrued Benefit is zero at the time of his Separation from the Service, then
that Participant shall be deemed to have received an immediate distribution of
that vested Accrued Benefit on his Severance from Service Date.

 

(f)            The Accrued Benefit for each Section 401(a)(17)
employee (defined below) under this Plan will be the sum of (i) the
employee’s Accrued Benefit as of December 31, 1993 and (ii) the
employee’s Accrued Benefit (if any) determined under the benefit formula
applicable for a Plan Year beginning on or after January 1, 1994, as
applied to the employee’s years of service (if any) credited to the employee
for Plan Years beginning on or after January 1, 1994 for purposes of
benefit accruals.  A Section 401(a)(17)
employee means an employee whose current Accrued Benefit as of a date on or
after the first day of the first Plan Year beginning on or after January 1,
1994, is based on Compensation for a year beginning prior to the first day of
the first Plan Year beginning on or after January 1, 1994, that exceeded
$150,000.

 

(g)           Notwithstanding anything to the contrary in the Plan,
no Participant shall accrue any additional retirement benefits under the Plan
after December 31, 1993, and the Accrued Benefit of each Participant shall
be fixed and frozen on December 31, 1993 on the basis of the Participant’s
Average Final Compensation (through December 31, 1993), years of Credited
Service and Covered Compensation through December 31, 1993.  Accordingly, the Normal Retirement Benefit
under Section 3.2 of the Plan, the Early Retirement Benefit under Section 3.4
of the Plan, the Disability Retirement Benefit under Section 3.5 of the Plan,
and the Vested Retirement Benefit under Section 3.10 of the Plan which
each Participant may have accrued through December 31, 1993 shall be fixed
and frozen in accordance with the principles set out in Section 1.7
(Average Final Compensation), Section 1.19 (Credited Service), and Section 1.18
(Covered Compensation).

 

(h)           If the Plan’s vesting schedule is amended, the vested
percentage of every Employee who is a Participant on the amendment adoption
date or the amendment effective date, whichever is later, may not be less than
the Participant’s vested percentage determined under the Plan without regard to
the amendment.  In addition, if the Plan’s
vesting schedule is amended, each such Participant who has completed 3 Years of
Service and whose vested percentage is determined under the new vesting
schedule may elect to have his or her vested percentage determined under the
old vesting schedule if the old vesting schedule would be more favorable.

 

(i)            An Employee’s right to his or her normal retirement
benefit is nonforfeitable on attainment of age 65.

 

Section 3.11           Suspension
of Benefits.

 

(a)           Payment of any benefit derived from Company
contributions to which a Participant would otherwise be entitled shall be
suspended for any calendar month in which the Participant completes 40 or more
hours of service with the Company or with any member of the controlled group;
provided, however, that individual companies may adopt non-discriminatory
procedures to permit payment of benefits during reemployment.  Any suspension shall be effected in
accordance with Department of Labor Regulations § 2530.203-3 (29 CFR
2530.203-3), as amended, and rules and operational guidelines promulgated
by the Committee consistent with such regulations.

 

33

 

(b)           Subject to Section 1.19, a Participant shall
accrue Credited Service in accordance with the terms of the Plan for any period
for which his benefit payments are suspended. 
The benefit to which a Participant is entitled under the Plan shall be
recomputed as of the first day of the month following the end of the suspension
of benefits by taking into account such additional Credited Service,
Compensation, etc. as required by the terms of the Plan and the benefits
already paid thereunder, but in no event shall the Benefit payable following
the suspension be less than the Benefit to which such Participant was entitled
immediately prior to the suspension.

 

Section 3.12           Direct
Rollover.

 

To the extent administratively practicable, a
Distributee may elect, at the time and in the manner prescribed by the
Committee, to have any portion of an Eligible Rollover Distribution paid
directly to an Eligible Retirement Plan specified by the Distributee in a
Direct Rollover.  For these purposes, the
following definitions apply:

 

(a)           Eligible Rollover Distribution. 
An Eligible Rollover Distribution is any distribution of all or any
portion of the balance to the credit of the Distributee, except that an
Eligible Rollover Distribution does not include any distribution that is one of
a series of substantially equal periodic payments (not less frequently than
annually) made for the life (or life expectancy) of the Distributee or the
joint lives (or joint life expectancies) of the Distributee and the Distributee’s
Designated Beneficiary, or for a specified period of 10 years or more; any
distribution to the extent that distribution is required under Code Section 401(a)(9);
and the portion of any distribution that is not includible in gross income.

 

(b)           Eligible Retirement Plan. 
An Eligible Retirement Plan is an individual retirement account
described in Code Section 408(a), an individual retirement annuity
described in Code Section 408(b), an annuity plan described in Code Section 403(a),
or a qualified trust described in Code Section 401(a), that accepts the
Distributee’s Eligible Rollover Distribution. 
An Eligible Retirement Plan also includes an annuity contract described
in Code Section 403(b) and an eligible plan under Code Section 457(b) that
is maintained by a state, political subdivision of a state, or any agency or
instrumentality of a state or political subdivision of a state, provided the
plan agrees to separately account for amounts transferred into such plan from
this Plan.  To the extent provided in Section 824
of the Pension Protection Act of 2006, an Eligible Retirement Plan also
includes a Roth IRA.

 

(c)           Distributee. 
A Distributee includes an Employee or former Employee, and such an
Employee’s surviving Spouse or former Spouse who is an alternate payee (under a
Qualified Domestic Relations Order) of such an Employee.

 

(d)           Direct Rollover. 
A Direct Rollover is a payment by the Plan to the Eligible Retirement
Plan specified by the Distributee.

 

34

 

(e)           Non-Spouse Beneficiary. 
Effective for Eligible Rollover Distributions (as defined above) to
non-Spouse designated beneficiaries for which the Annuity Starting Date (as
defined in Code Section 417(e)) is on or after January 1, 2010, the
following provisions apply:

 

(i)            Direct Rollover.  Pursuant to
procedures established by the Administrative Committee, a Participant’s
non-Spouse designated beneficiary, within the meaning of Code Section 401(a)(9),
may authorize a direct rollover to an individual retirement account or annuity
described in Code Section 408(a) or Code Section 408(b) (collectively
referred to as an “IRA”), that is established on behalf of the designated
beneficiary and that will be treated as an inherited IRS pursuant to the
provisions of Code Section 402(c)(11).

 

(ii)           Required Minimum Distribution. 
The determination of any required minimum distribution within the
meaning of Code Section 401(a)(9) that is ineligible for rollover
will be made in accordance with IRS Notice 2007-7, Q&A 17 and 18.

 

Section 3.13           Payment
of Small Amounts.

 

The Actuarial Equivalent, if $5,000 or less, of any
Accrued Benefit payable in respect of a Participant shall be paid in a lump sum
in lieu of monthly or other periodic payments. 
See update at the end of Appendix II (Distribution Provisions) of
this Plan.

 

(a)           For purposes of determining an employee’s accrued
benefit under the Plan, the Plan may disregard service performed by the
employee with respect to which the employee has received (i) a
distribution of the present value of his entire nonforfeitable benefit if such
distribution was in an amount (not more than $5,000) permitted under
regulations prescribed by the Secretary of the Treasury, or (ii) a
distribution of the present value of the employee’s nonforfeitable benefit
attributable to such service which he elected to receive.  Clause (i) applies only if such
distribution was made on termination of the employee’s participation in the
Plan. Clause (ii) applies only if such distribution was made on
termination of the employee’s participation in the plan or under such other
circumstances as may be provided under regulations prescribed by the Secretary
of the Treasury.

 

(b)           For purposes of determining an employee’s accrued
benefit under the Plan, the Plan will not disregard service as provided in the
preceding paragraph (a) if the employee (i) received a distribution
under paragraph (a) which was less than the present value of the
Participant’s accrued benefit, the employee resumes employment covered under
the Plan, and the employee repays the full amount of such distribution with
interest at the rate determined for purposes of subsection 411(c)(2)(C).  Such repayment must be made (I) in the
case of a withdrawal on account of separation from service, before the earlier of
5 years after the first date on which the employee is subsequently re-employed
by the employer, or the close of the first period of 5 consecutive 1-year
breaks in service commencing after the withdrawal; or (II) in the case of
any other withdrawal, 5 years after the date of the withdrawal.

 

(c)           This Plan precludes the immediate distribution of any
benefit where the present value of the nonforfeitable accrued benefit (taking
into account benefits derived from both employer and employee contributions) is
in excess of $5,000 without the consent of the Participant and, when
applicable, the Participant’s spouse. 
For these purposes, an immediate distribution means the distribution of
any part of the benefit before the later of age 62 or normal retirement age.

 

35

 

Section 3.14           Special
Election Provisions.

 

(a)           Qualified Preretirement Survivor Annuity coverage
shall be automatically implemented for each Participant upon attainment of his
or her right to a Vested Retirement Benefit or on such other date specified in
the regulations prescribed under Section 417(a) of the Code, and
shall automatically continue until the Participant dies, is divorced, or his
spouse dies.

 

(b)           Notwithstanding any other provision of this Plan, any
election by a Participant or Former Participant of a form of benefit payment
other than that having the effect of a Statutory Joint and Survivor Annuity
described in Section 3.7 shall be effective only if the Participant’s
spouse consents to it in writing, such consent is witnessed by a Plan
representative designated by the Administrator or a notary public, such
election designates a beneficiary (or a form of benefits) which may not be
changed without spousal consent (unless the consent of the spouse expressly
permits designations by the Participant without any requirement of further
consent by the spouse), and the spouse’s consent acknowledges the effect of the
election.  Spousal consent shall not be
required if the Participant establishes to the satisfaction of the Plan
representative that such consent may not be obtained because there is no spouse
or the spouse cannot be located.  Any
consent shall be effective only with respect to the spouse who gave it.

 

Section 3.15           Distribution
of Vested Retirement Benefit.

 

This Section 3.15 has been replaced by Appendix
II (Distribution Provisions).

 

ARTICLE IV

FUNDING OF BENEFITS

 

Section 4.1             Funding Policy and Method.  The
Administrative Committee shall establish a funding policy and method consistent
with the objectives of the Plan and the requirements of ERISA.  Participants shall neither be required nor
permitted to make contributions under the Plan.

 

Section 4.2             Company Contributions.  The Company
shall contribute and pay to the Trustee, to be held and administered in trust,
such amounts at such times as shall be required by the funding policy and
method established pursuant to Section 4.1 and as shall be in accordance
with the rules promulgated by the Administrative Committee pursuant to Section 7.6
in effectuation of such funding policy and method.

 

Section 4.3             Reduction of Company Contributions.  Forfeitures
arising under the Plan from termination of employment, death or for any other
reason shall not be applied to increase the benefits any person would receive
from the Plan prior to termination or the complete discontinuance of Company
contributions thereto, but shall instead be used, to the extent not anticipated
in determining actuarial costs hereunder, to reduce subsequent Company
contributions to the Plan.

 

36

 

ARTICLE V

TRUST AGREEMENT AND TRUST FUND

 

Section 5.1             Trust Agreement.  Bolsa Chica has entered into a
master trust agreement with the Trustee, providing for the administration of
the Trust Fund, in such form and containing such provisions as Bolsa Chica has
deemed appropriate, including, but not by way of limitation, provisions with
respect to the powers and authority of the Trustee, the right of Bolsa Chica to
discharge or replace the Trustee at any time, the authority of Bolsa Chica to
amend or terminate the master trust agreement and to settle the accounts of the
Trustee on behalf of all persons having an interest in the Trust Fund, and a
provision that it shall be impossible at any time prior to the satisfaction of
all liabilities under the Plan with respect to Participants and their
Beneficiaries for any part of the corpus or income of the Trust Fund to be used
for or diverted to purposes other than for the exclusive benefit of Participants
and their Beneficiaries.  The master
trust agreement shall constitute the Trust Agreement for the Plan and shall be
a part of the Plan, and the rights and duties of any person under the Plan
shall be subject to all applicable terms and provisions of the master trust
agreement.

 

Section 5.2             Trust Fund.  The Trust Fund shall be held by the Trustee,
pursuant to the terms of the master trust agreement, for the exclusive purposes
of providing benefits to Participants and their Beneficiaries and defraying
reasonable expenses of administering the Plan, to the extent such expenses are
not paid by the Company, and no assets of the Plan shall inure to the benefit
of the Company except to the extent permitted by ERISA; provided, however, that
any contribution made as a result of erroneous actuarial calculations will be
returned within one year from the date of contribution to the Company which
made the contribution. No person shall have any interest in or right to any
part of the earnings of the Trust Fund, or any right in, or to, any part of the
assets thereof, except as and to the extent expressly provided in the Plan and
in the master trust agreement.

 

ARTICLE VI

CERTAIN LIMITATIONS ON BENEFITS

 

This Article VI has been replaced by Appendix I
(Limitations on Benefits).

 

37

 

ARTICLE VII

 

PLAN
ADMINISTRATION

 

Section 7.1             Establishment of the Administrative Committee. 
The general administration of the Plan and the responsibility for
carrying out its provisions shall be placed in the Administrative
Committee.  If the Company is not serving
as the Administrative Committee, the Administrative Committee shall consist of
not less than two nor more than seven persons appointed from time to time by
the Board of Directors to serve at its pleasure. Any member of the
Administrative Committee may resign by delivering his written resignation to
Bolsa Chica and the secretary of the Administrative Committee.  The Administrative Committee shall be the
Plan Administrator (within the meaning of section 3 of ERISA and
section 414(g) of the Internal Revenue Code) with such authority,
responsibilities and obligations as ERISA and the Internal Revenue Code grant
to and impose upon persons so designated. 
For purposes of ERISA, the Administrative Committee shall be a “named
fiduciary” under the Plan.

 

Section 7.2             Establishment of the Investment Committee. 
The responsibility for the formulation of the general investment
practices and policies of the Plan and its related Trust Fund and for effectuating
such practices and policies shall be placed in the Investment Committee.  If the Company is not serving as the
Investment Committee, the Investment Committee shall consist of not less than
three nor more than seven persons appointed from time to time by the Board of
Directors to serve at its pleasure. Any member of the Investment Committee may
resign by delivering his written resignation to Bolsa Chica and the secretary
of the Investment Committee.  For
purposes of ERISA, the Investment Committee shall be a “named fiduciary” under
the Plan.  Effective September 30,
1993, the Board of Directors or its delegate shall serve as the Investment
Committee.

 

Section 7.3             Organization of the Committees.  If the
Company is not serving as the Committee, the members of the Committee shall
elect a chairman from their number, and shall also elect a secretary who may be
but need not be one of the members of the Committee.  No member of a Committee who is also an
Employee receiving regular compensation as such shall receive any compensation
for his services as a member of such Committee. 
No bond or other security shall be required of any member of a Committee
in any jurisdiction.  No member of a
Committee shall, in such capacity, act or participate in any action directly
affecting his own benefits under the Plan other than an action which affects
the benefits of Participants generally.

 

Section 7.4             Powers of the Administrative Committee.  The powers of
the Administrative Committee shall include, but are not limited to, the
following:

 

(a)           appointing such committees with such powers as it
shall determine, including an executive committee to exercise all powers of the
Administrative Committee between meetings of the Administrative Committee;

 

(b)           determining the times and places for holding meetings
of the Administrative Committee and the notice to be given of such meetings;

 

38

 

(c)           employing such agents and assistants, such counsel
(who may be counsel to the Company or to Bolsa Chica) and such clerical,
medical, accounting and actuarial services or advisers as the Administrative
Committee may require in carrying out the provisions of the Plan;

 

(d)           authorizing one or more of their number or any agent
to make any payment, or to execute or deliver any instrument, on behalf of the
Administrative Committee, except that all requisitions for funds from, and
requests, directions, notifications and instructions to the Trustee shall be
signed either by two members of the Administrative Committee or by one member
and the secretary thereof;

 

(e)           fixing and determining the proportion of expenses of
the Plan from time to time to be paid by the Companies and requiring payment
thereof;

 

(f)            establishing one or more subcommittees in each
location at which Bolsa Chica or any of its subsidiaries or affiliates does
business, appointing the members of any such subcommittees, in such number and
for such service as the Administrative Committee shall deem appropriate, and
delegating any power or duty granted to the Administrative Committee by the
Plan to any such subcommittees;

 

(g)           receiving and reviewing reports from the Trustee as to
the financial condition of the Trust Fund, including its receipts and
disbursements;

 

(h)           executing and filing with the appropriate governmental
agencies such registration and other statements, forms, applications,
notifications, and other documents or information as the Administrative
Committee may from time to time deem appropriate in connection with the Plan;

 

(i)            approving the adoption of the Plan by any subsidiary
or affiliate of the Company in accordance with Section 8.4;

 

(j)            amending the Plan to the extent provided in Section 8.1;
and

 

(k)           determining all questions concerning eligibility,
elections, contributions, and benefits under the Plan, construing all terms of
the Plan, including any uncertain terms, and determining all questions
concerning administration of the Plan.

 

Section 7.5             Powers of the Investment Committee.  The powers of
the Investment Committee shall include, but not be limited to, the following:

 

(a)           directing the Trustee, or appointing one or more
investment managers to direct the Trustee, subject to the conditions set forth
in the master trust agreement and in paragraph below, in all matters concerning
the investment of the Trust Fund;

 

(b)           authorizing one or more of their number or any agent
to make any payment, or to execute or deliver any instrument, on behalf of the
Investment Committee, except that if the Company is not serving as the
Investment Committee all requisitions for funds from, and requests, directions,
notifications and instructions to the Trustee shall be signed either by two
members of the Investment Committee or by one member and the secretary thereof;

 

39

 

(c)           receiving and reviewing reports from the Trustee as to
the financial condition of the Trust Fund, including its receipts and
disbursements;

 

(d)           employing such agents and assistants, such counsel
(who may be counsel to the Company or to Bolsa Chica) and such clerical,
accounting, actuarial and investment services or advisers as the Investment
Committee may require in carrying out its responsibilities under the Plan.

 

Section 7.6             Duties of the Administrative Committee.  The
Administrative Committee shall have the general responsibility for
administering the Plan and carrying out its provisions.  Subject to the limitations of the Plan, the
Administrative Committee from time to time shall establish rules for the
administration of the Plan and the transaction of its business and shall
promulgate such rules as may be necessary to effectuate the funding policy
and method established pursuant to Section 4.1.  If the Company is not serving as the
Administrative Committee, as to all matters of administration, interpretation
and application not reserved to the Company or Bolsa Chica, the determination
of the Administrative Committee as to any disputed question shall be
conclusive.  Any determination made by
the Administrative Committee shall be given deference in the event it is
subject to judicial review and shall be overturned only if it is arbitrary and
capricious.  It shall be the duty of the
Administrative Committee to notify the Trustee in writing of the amount of any
benefit which shall be due to any Participant and in what form and when such
benefit is to be paid.  The
Administrative Committee may at any time or from time to time with respect to a
Defined Benefit Plan (as defined in Section 6.1) require the Trustee by a
written direction to purchase one or more annuities, in specific amounts, in
the names of Participants, their spouses, their contingent annuitants, and/or
their beneficiaries from an insurance company designated by the Administrative
Committee.

 

Section 7.7             Actions by a Committee.  If the
Company is not serving as the Committee, a majority of the members of a
Committee at the time in office shall constitute a quorum for the transaction
of business at any meeting and resolutions or other actions made or taken by a
Committee shall require the affirmative vote of a majority of the members of
such Committee attending a meeting, or by a majority of members in office by
writing without a meeting.

 

Section 7.8             Actuarial Tables and Studies.  The
Administrative Committee shall adopt from time to time such actuarial tables as
may be required in connection with the Plan. 
As an aid to the Administrative Committee in adopting tables and to the
Company in fixing the rates of its contribution payable under a Defined Benefit
Plan (as defined in Section 6.1), the actuary (who shall be enrolled by
the Joint Board for the Enrollment of Actuaries established under ERISA)
designated by the Administrative Committee shall make periodical actuarial
studies in relation to such Defined Benefit Plan, and shall recommend tables to
the Administrative Committee and rates of contribution to the Company.

 

Section 7.9             Accounts.  The Administrative Committee shall maintain
accounts showing the fiscal transactions of the Plan and shall keep in
convenient form such data as may be necessary for the effective operation and
administration and actuarial valuations of the Plan.

 

40

 

Section 7.10           Discretionary
Action.  The Administrative Committee shall have full
discretionary authority to administer and interpret the Plan, including
discretionary authority to determine eligibility for participation and for
benefits under the Plan and discretionary authority to construe ambiguous terms
and to correct errors.  The Plan
Administrator may delegate its administrative duties.  Any such delegation will carry with it the
full discretionary authority of the Plan Administrator to carry out these
duties.  Any determination by the Plan
Administrator or its delegate will be final and conclusive upon all persons.

 

Section 7.11           Action
Taken in Good Faith.  To the extent permitted by ERISA, the members
of the Committees, the Company, Bolsa Chica, and their officers and directors
shall be entitled to rely upon all tables, valuations, certificates, and
reports, if any, furnished by the actuary described at Section 7.8, upon
all certificates and reports made by any accountant or by the Trustee, upon all
opinions given by any legal counsel selected or approved by a Committee, and
upon all opinions given by any investment adviser selected or approved by the
Investment Committee, and the members of the Committees, the Company, Bolsa
Chica, and their officers and directors shall be fully protected in respect of
any action taken or suffered by them in good faith in reliance upon any such
tables, valuations, certificates, reports, opinions or other advice of any
actuary, accountant, Trustee, investment adviser or legal counsel, and all
action so taken or suffered shall be conclusive upon each of them and upon all
Participants and Employees.

 

Section 7.12           Indemnification. 
To the extent not contrary to ERISA, the Company shall indemnify the
Committees, each member of a Committee and any other director, officer or
employee of an employer who is designated to carry out any responsibilities
under the Plan for any liability, joint and/or several, arising out of or
connected with their duties hereunder, except such liability as may arise from
their gross negligence or willful misconduct.

 

Section 7.13           Claims
Procedure.  See the Plan’s Summary Plan Description, as
amended from time to time, for the Plan’s Claims Procedures.  The Administrative Committee has full
discretionary authority to adjudicate claims.

 

Section 7.14           RESERVED

 

Section 7.15           Responsibilities
of Named Fiduciaries Other than the Committees.  The Trustee
shall have such responsibilities with respect to the operation of the Plan as
are set forth in the master trust agreement. 
Any investment adviser which the Investment Committee may employ
pursuant to Section 7.5 shall have the responsibility to direct the
Trustee in investing and reinvesting the Trust Fund (or that portion thereof
specified by the Investment Committee in the instrument appointing such
adviser) and to report the book value and fair market value of each asset in
the Trust Fund (or such portion thereof) to the Committees periodically, as
such responsibilities may be more fully described in the master trust
agreement.

 

Section 7.16           Allocation
of Responsibilities.  The description of the responsibilities and
powers of the Committees and the description of the responsibilities of the
Trustee contained in the foregoing provisions of this Article VII shall
constitute, for purposes of ERISA, procedures for allocating responsibilities
for the operation and administration of the Plan among named fiduciaries.

 

41

 

Section 7.17           Designation
of Persons to Carry Out Responsibilities of Named Fiduciaries. 
The Committees, the Trustee and any investment adviser which the
Investment Committee may employ pursuant to Section 7.5 may, except as to
responsibilities involving management and control of assets held in the Trust
Fund, designate one or more other persons to carry out any or all of their
respective responsibilities under the Plan, provided that such designation
shall be made in writing, filed with the Plan’s records and made available for
inspection upon request by any Participant or Beneficiary under the Plan.

 

ARTICLE VIII

AMENDMENT AND TERMINATION; PARTICIPATION AND WITHDRAWAL BY COMPANIES; PLAN
MERGERS

 

Section 8.1             Authority to Amend or Terminate.  Bolsa Chica
reserves the right to terminate, or to modify, alter or amend the Plan or the
Trust Agreement from time to time to any extent that it may, at its sole and
complete discretion, deem advisable including, but without limiting the
generality of the foregoing, any amendment deemed necessary to qualify or to
ensure the continued qualification of the Plan under the Internal Revenue
Code.  The foregoing right shall be
exercised only by action of Bolsa Chica, except that the Administrative
Committee, by a written instrument, duly executed by a majority of its members,
may make (a) any amendment which may be necessary or desirable to ensure
the continued qualification of the Plan and its related trust under the
Internal Revenue Code or which may be necessary to comply with the requirements
of ERISA, or any regulations or interpretations issued by the Department of
Labor or the Internal Revenue Service with respect to the requirements of ERISA
or the Internal Revenue Code, (b) any amendment which is required by the
provisions of any collective bargaining agreement between the Company and its
employees and (c) any other amendment which will not involve an estimated
annual cost under the Plan (determined at the time of the amendment in a manner
consistent with the requirements of ERISA) in excess of $200,000.  No such amendment shall increase the duties
or responsibilities of the Trustee without its consent thereto in writing.  No such amendment shall have the effect of
diverting the whole or any part of the principal or income of the Trust Fund to
purposes other than for the exclusive benefit of Participants and others having
an interest in the Plan, prior to the satisfaction of all liabilities with
respect to them.  Effective September 30,
1993, all amendments will be in writing and will be signed by an officer of
Koll Real Estate Group, Inc. or any successor to Koll Real Estate Group, Inc.
that adopts the Plan.  No such amendment
shall eliminate or reduce Section 411(d)(6) protected benefits that
have already accrued.

 

42

 

Section 8.2             Effect of Termination.  Upon the
termination or partial termination of a Defined Benefit Plan rights of all
affected Participants to their respective accrued benefits under the Plan shall
be nonforfeitable to the extent then funded. 
Upon the withdrawal from a Defined Benefit Plan of any Company under
circumstances constituting a partial termination of the Plan within the meaning
of section 411(d)(3) of the Code, such rights of all affected
Participants who are Employees of such Company shall likewise be nonforfeitable
to the extent then funded.  In either
such event, the Administrative Committee shall (except as provided in Section 8.3)
direct the Trustee as to the allocation of the applicable assets of the Defined
Benefit Plan, in accordance with the following provisions of this Section 8.2.  After providing for the expenses of the
Defined Benefit Plan, the assets remaining in the account of each Company
withdrawing from the Defined Benefit Plan shall be used and applied for the
benefit of its Employees, former Employees who are Participants, and the
beneficiaries of the foregoing in the manner prescribed by section 4044 of
ERISA (or corresponding provision of any subsequent applicable law in effect at
the time).  The Administrative Committee
may require that the benefits accrued hereunder be paid in cash or in the form
of immediate or deferred annuities or otherwise as it shall determine.  After such allocation has been made, any
residue of such applicable assets of the Defined Benefit Plan may be
distributed to such Company if all liabilities of the Plan with respect to its
Employees, former Employees who are Participants, and the beneficiaries of the
foregoing have been satisfied and the distribution does not contravene any applicable
provisions of law.

 

Whether or not a “partial termination” within the
meaning of this Section 8.2 has occurred in any given situation shall be
determined by the Administrator in light of existing Internal Revenue Service
guidelines and other relevant authorities. 
However, in the event of the disposition of a particular business
operation, or the shutdown thereof, under conditions which do not constitute a “partial
termination”, the Administrator may declare that such disposition or shutdown
shall nevertheless be treated as a “partial termination” for purposes of this
Plan.  Any such declarations shall be
made in a manner which does not discriminate in favor of officers, shareholders
or highly compensated individuals.

 

Section 8.3             RESERVED

 

Section 8.4             Participation by Companies.  The
Administrative Committee or Bolsa Chica may approve the adoption of the Plan by
any subsidiary or affiliate of the Company upon appropriate action by such
subsidiary or affiliate.  In such event,
or if any individuals become Employees of a Company as a result of the
acquisition of all or a part of the assets or business of another company, the
Administrative Committee or Bolsa Chica may, subject to the provisions of ERISA
and the qualification requirements of the Internal Revenue Code, determine to
what extent, if any, credit and benefits shall be granted for previous service
with such subsidiary, affiliate or other company.

 

Section 8.5             Withdrawal of a Company.  Any company
which is a Company may, by appropriate action taken by it, terminate its
participation in the Plan, in which event the applicable provisions of Section 8.2
shall apply; provided, however, that if so directed by the Administrative
Committee, the applicable assets of the Plan shall be segregated by the Trustee
as a separate trust and the Plan shall be continued as a separate plan for the
employees of such company under which the board of directors of such company
shall succeed to all the powers and duties of Bolsa Chica hereunder.

 

43

 

Section 8.6             Merger with Other Plans.  The Plan
shall not be merged or consolidated with, nor transfer its assets or
liabilities to, any other plan unless each Participant would (if the Plan then
terminated) receive a benefit immediately after the merger, consolidation or
transfer which is equal to or greater than the benefit he would have been
entitled to receive immediately before the merger, consolidation or transfer
(if the plan had then terminated).

 

Section 8.7             Certain Employee Terminations.  The
provisions of this Section 8.7 shall apply whenever, under circumstances
which do not constitute a partial termination of the Plan for purposes of Section 8.2,
the following events occur:

 

(a)           a company other than a member of the Bolsa Chica Group
(as defined in Section 6.1) (such company being hereinafter referred to in
this Section 8.7 as the “Acquiring Company”) purchases or otherwise
acquires some part or all of the assets or business of a Company and

 

(b)           in connection with such purchase or other acquisition,
a group of Participants who are covered by a Defined Benefit Plan or a Defined
Contribution Plan (as defined in Section 6.1) (such Participants being
hereinafter referred to in this Section 8.7 as the “Transferred
Participants”) become employees of the Acquiring Company.

 

In its sole discretion, the Administrative Committee
may determine to vest each such Participant in the full amount of his account
in the case of a Defined Contribution Plan or his accrued benefit in the case
of a Defined Benefit Plan, and distribute his interest in the Trust Fund, as so
determined, in accordance with the appropriate provisions of the Plan.  In the alternative, in the case of a Defined
Contribution Plan, after distribution to each Transferred Participant in such
plan of the vested portion of his account, any remaining balance of the account
of each such Transferred Participant shall be held as a separate account in his
name until such time as the Administrative Committee shall determine, on the
basis of evidence satisfactory to it, either that (i) such
Transferred Participant has completed a period of continuous service with the
Acquiring Company which, when added to his Vesting Service, is equal to five
years or (ii) such Transferred Participant’s employment by the
Acquiring Company has been terminated prior to his completion of such a period
of continuous service.  Subject to the
provisions of such Defined Contribution Plan regarding the manner and time of payment
under the plan, if the Administrative Committee makes the determination
referred to in clause (i) of the preceding sentence with respect to
any such Transferred Participant, the amount held in the separate account in
his name shall thereafter be distributed to him in full; if the Administrative
Committee makes the determination referred to in clause of the preceding
sentence with respect to any such Transferred Participant, the amount
theretofore held in the separate account in his name shall be forfeited as of
the last day of the plan year during which such determination shall have been
made, and the amount so forfeited shall be applied in accordance with the
forfeiture provisions of the Defined Contribution Plan.

 

44

 

Section 8.8             Suspension of Contributions.  A Company
shall have the right to suspend its contributions to the Plan at any time for a
fixed period of time, and such period shall be extended by subsequent action of
such Company.  Such suspension shall not
automatically become a discontinuance of contributions as under Section 8.2
until the time at which in the opinion of the Plan Enrolled Actuary such
suspension affects the benefits to be paid or made available under the
Plan.  No such suspension shall be
allowed to create an “accumulated funding deficiency” under Section 302(a)(2) of
ERISA, unless the Plan is then terminated under Section 8.2; provided that
in the event of an unintentional creation of an accumulated funding deficiency,
the Companies shall have 90 days after such a deficiency is finally determined
to correct it without such termination. 
In the event of such suspension the Plan shall otherwise remain in full
force and effect.

 

Section 8.9             Consolidation or Merger of Bolsa Chica.  In the event
of the consolidation or merger of Bolsa Chica with or into any other
corporation, or the sale by Bolsa Chica of substantially all of its assets, the
resulting successor may continue the Plan by adopting the same by resolution of
its board of directors and by executing a proper supplemental agreement to the
master trust agreement with the Trustee.

 

If within ninety days from the effective date of such
consolidation, merger or sale of assets, such new corporation does not adopt
the Plan, the rights of all affected Participants to their respective accrued
benefits under the Plan shall be nonforfeitable to the extent funded as of the
effective date of such consolidation, merger or sale of assets.

 

ARTICLE IX

TOP-HEAVY PROVISIONS

 

See Appendix III for the Plan’s Top-Heavy Provisions.

 

ARTICLE X

 

GENERAL PROVISIONS

 

Section 10.1           Administration. 
Effective September 30, 1993, Koll Real Estate Group, Inc. or
any successor to Koll Real Estate Group, Inc. that adopts this Plan will
serve as the Administrator.

 

Section 10.2           Source
of Payment.  Benefits under this Plan shall be payable out
of the Trust Fund or, in the case of a Defined Benefit Plan (as defined in Section 6.1),
through the use of annuity contracts purchased with assets of the Trust Fund,
and neither Bolsa Chica, nor any Company shall have any obligation,
responsibility or liability to make any direct payment of benefits due under
the Plan.  Neither Bolsa Chica, nor any
Company nor the Trustee makes any guarantee to Participants against the loss or
depreciation in value of the Trust Fund or guarantees the payment of any
benefits hereunder.  No person shall have
any right under the Plan with respect to the Trust Fund, or against the
Trustee, Bolsa Chica, or any Company, except as specifically provided herein or
in ERISA.

 

45

 

Section 10.3           Payment
of Expenses.  All expenses that shall arise in connection
with the administration of this Plan and the master trust agreement, including,
but not limited to, the compensation of the Trustee and of any actuary,
accountant, counsel, investment adviser, other expert or other person who shall
be employed by a Committee in connection with the administration or investment
thereof, shall be paid from the Trust Fund or by the Companies; provided, however,
that no person who is employed full-time by any Company shall receive any
compensation from the Plan except for reimbursement of expenses properly and
actually incurred.

 

Section 10.4           No
Right to Employment.  Nothing herein contained shall be deemed to
give an Employee the right to be retained in the service of his employer or to
interfere with the rights of his employer to discharge him at any time.

 

Section 10.5           Inalienability
of Benefits.  Except as may be otherwise provided by
applicable law or pursuant to a qualified domestic relations order as defined
in section 414(p) of the Internal Revenue Code, benefits provided
under this Plan shall not, prior to the actual receipt thereof by the person
entitled thereto, be subject in any manner to anticipation, assignment,
alienation, sale, transfer, pledge, encumbrance, charge, attachment,
garnishment, execution, levy or other legal or equitable process, whether
voluntary or involuntary, and any attempt to anticipate, assign, alienate,
sell, transfer, pledge, encumber, charge, attach, garnish, execute or levy upon
or otherwise dispose of any right to benefits hereunder shall be void.  The Fund shall not in any manner be liable
for, or subject to, the debts, contracts, liabilities, engagements or torts of
any person entitled to benefits hereunder.

 

Section 10.6           Return
of Company Contributions.  Contributions by the Company
are expressly conditioned upon the (i) initial qualification of the Plan
under section 401 of the Internal Revenue Code of 1986, as amended, and (ii) deductibility
of such contributions under section 404 of the Internal Revenue Code of
1986, as amended.  Contributions shall be
returned to the Company within one year after (a) the date of denial of
the initial qualification of the Plan, (b) the disallowance of a
deduction, but only to the extent the deduction is disallowed, or (c) the
payment of a contribution by mistake of fact.

 

Section 10.7           Payment
Due an Incompetent.  If the Administrative Committee determines
that any person to whom a payment is due hereunder is unable to care for his
affairs because of physical or mental disability or because he is under 18
years of age, it shall have the authority to cause payments becoming due to
such person to be made to another for his benefit, without responsibility of
the Administrative Committee or the Trustee to see to the application of such
payments, and any payment made pursuant to such authority shall, to the extent
thereof, operate as a complete discharge of the obligations of the Company, the
Administrative Committee, the Trustee and the Trust Fund.

 

Section 10.8           Missing
Recipients.  In the event any amount shall become payable
hereunder to a Participant, retired Participant, contingent annuitant,
Beneficiary or the legal representative of any of the foregoing and if after
written notice from the Administrative Committee sent by registered mail to
such person’s last known address as shown in the Administrative Committee’s
records and such other due diligence as the Administrative Committee deems appropriate,
such person or his personal representative shall not have 

 

46

 

presented himself to the Administrative Committee
within five years after the mailing of such notice, then the Administrative
Committee may determine that such person’s interest in the Plan has terminated
and the amounts otherwise payable shall be forfeited and shall be reapplied in
accordance with Article IV of the Plan; provided, however, that if such
person presents himself after the expiration of the aforesaid period and
provides proper identification satisfactory to the Administrative Committee,
then such person’s forfeited benefit shall be reinstated and benefits
determined in accordance with Article III shall commence to be paid.  Unless required by law, in no event shall
benefits under the Plan be paid retroactively for the period during which such
benefits were payable but unclaimed.

 

Section 10.9           Errors
in Payment.  If any error shall result in the payment to
any Participant or other person of more or less than he would have received but
for such error, the Administrative Committee shall be authorized to correct
such error and to adjust the payments as far as possible in such manner that
the actuarial equivalent of the benefits to which such Participant or other
person was correctly entitled shall be paid. 
In the event of an overpayment, the Plan may pursue other lawful means
of recovering such overpayment.

 

Section 10.10         Multiple
Defined Benefit Plans.  Notwithstanding Section 8.8.3,
in the event a group of Employees who are Participants in a Defined Benefit
Plan (as defined in Section 6.1) shall become covered by another Defined
Benefit Plan established by the Bolsa Chica Group (as defined in Section 6.1),
the Company may authorize the Administrative Committee to direct the Trustee to
pay over and deliver to the trustee of such other plan such of the assets of
the original Defined Benefit Plan as the Administrative Committee may
determine, but in no event shall the assets so transferred exceed that
proportion of the original Defined Benefit Plan’s assets which the actuarially
determined liability for the accrued benefit credited to the Employees of such
group (on a termination basis) bears to the liability for all accrued benefits
thereunder (on a termination basis).

 

Section 10.11         Notices,
etc.

 

(a)           By Employee.  Wherever
provision is made in the Plan for the filing of any notice, application,
election or designation, such action shall, except where expressly provided
herein to the contrary, be evidenced by the execution of such form, and on such
notice, as the Administrative Committee may specify for the purpose and shall
be effective upon receipt unless the Plan otherwise provides.

 

(b)           To Employee.  Any
communication, statement, or notice addressed to any Employee or claimant at
his latest post office address as filed with the Company or the Administrative
Committee will, on deposit in the United States mail with postage prepaid, be
binding upon such Employee or claimant for all purposes of the Plan and,
Subject to Section 10.8, neither the Trustee nor the Company shall be
obligated to undertake a search to ascertain the whereabouts of any Employee or
claimant.

 

Section 10.12         Multiple
Capacities.  Any person or group of persons may serve in
more than one fiduciary capacity with respect to the Plan.

 

47

 

Section 10.13         Severability. 
In case any provisions of this Plan shall be held illegal or invalid for
any reason, the illegality or invalidity shall not affect the remaining
provisions of the Plan, but shall be fully severable, and the Plan shall be
construed and enforced as if the illegal or invalid provisions had never been
inserted in the Plan.

 

Section 10.14         Construction. 
The Plan shall be construed and enforced according to the laws of the
State of California (without regard to its choice of law principles) except to
the extent otherwise required by ERISA or necessary for qualification under the
Internal Revenue Code.  Headings of
Articles, Sections and Subsections herein contained are included solely for
convenience of reference, and if there be any conflict between such headings
and the text hereof, the text shall control. 
It is intended that the Plan in all respects conform to and be
administered and interpreted in a manner consistent with the requirements of
ERISA and the requirements for qualification under the Internal Revenue
Code.  Accordingly, any provision
required to be included herein, in order that the Plan so conform, shall be
deemed to be included in the Plan, whether or not expressly set forth.

 

Section 10.15         Special
Transitional Rules in Connection with the Spinoff. 
It is the intent of the following transitional rules that this Plan
be interpreted as assuring the uninterrupted continuation of the provisions of
the Predecessor Plan for Employees of the Company who were or would have been
eligible to participate in such plan before the Spinoff.  (Nevertheless, the Company reserves the right
to amend this Plan as provided herein so long as no such amendment adversely
affects benefits accrued by such Employees prior to the effective date of
amendment.)  Therefore, subject to the
exclusions set forth in Section 1.26, the term “Employee” as used in this
Plan shall include any person who was employed during the period from January 1,
1986 through May 27, 1986 by Henley or a business that became a division
or subsidiary of Henley in connection with the Spinoff.  The term “Company”, as used in this Plan
shall include, for periods prior to the effective date of the Spinoff, Henley
and any business that became a subsidiary or division of Henley in connection
with the Spinoff that was previously a Company within the meaning of Section 1.14
of the Predecessor Plan.  In addition, subject
to the transfer of sufficient assets under section 414(1) of the Code
from the trust under the Predecessor Plan to the Trust Fund, the accrued
benefit under this Plan as of January 1, 1986 of each Employee of the
Company who was a Participant in the Predecessor Plan on December 31, 1985
shall be equal to his accrued benefit, on a termination basis, determined as of
such date under the provisions of the Predecessor Plan as then in effect.

 

Section 10.16         Additional
Special Transitional Rule in Connection with Spinoffs of Henley and The
Fisher Scientific Group Inc.

 

(a)           Any Employee who was a participant in the Predecessor
Plan on December 31, 1985 and transferred to employment with the Company
directly from employment by Allied-Signal or its subsidiaries on or before June 1,
1987 shall, subject to the transfer as of January 1, 1986 of all assets
allocable to such Employee from the trust under the Predecessor Plan to the
Trust Fund, be deemed for all purposes under the Plan to have commenced
employment with the Company as of January 1, 1986.

 

48

 

(b)           Any Employee who was a participant in the Predecessor
Plan on December 31, 1985 and transferred to employment with The Fisher
Scientific Group Inc., directly from employment with Allied-Signal or its
subsidiaries on or before June 1, 1987 shall, subject to the transfer as
of January 1, 1986 of all assets allocable to such Employee from the trust
under the Predecessor Plan to the Trust Fund, be deemed for all purposes under
the Plan to have commenced employment with the Company as of January 1,
1986.

 

Section 10.17       Military
Service.  Notwithstanding any provision in this Plan to
the contrary, contributions, benefits and service credit with respect to
qualified military service will be provided to the extent required by Code Section 414(u).  If a Participant dies on or after January 1,
2007, while performing qualified military service (as defined in Code Section 414(u)),
the survivors of that Participant are entitled, to the extent required by Code Section 401(a)(37),
to any additional benefits (other than benefit accruals relating to the period
of qualified military service) provided under the Plan had the Participant
resumed and then terminated employment on account of death.

 

ARTICLE XI

SPECIAL PROVISIONS RELATING TO THE CUTBACK OF OPERATIONS AT THE HAMPTON
LOCATION

 

Section 11.1          Applicability. 
The provisions of this Article XI shall be applicable to each
Participant or Former Participant in the Plan (a) who was actively
employed on December 31, 1985 in the Signal Engineered Products Group, (b) whose
regular place of employment on or after December 31, 1985 was the Hampton
office of the Company, regardless of whether such Participant may thereafter be
transferred to another location, and (c) who, on or before July 1,
1986, agreed to a date for the involuntary termination of his employment in
connection with the Allied-Signal Inc. Streamlining Program.  The Participants and Former Participants to
whom this Article XI is applicable shall hereinafter be referred to as “Hampton
Participants.”

 

Section 11.2          Full
Vesting.  Notwithstanding any other provision of the
Plan, each Participant or Former Participant (a) who was actively employed
on December 31, 1985 in the Signal Engineered Products Group and (b) whose
regular place of employment on or after December 31, 1985 was the Hampton
office of the Company, regardless of whether such Participant may thereafter be
transferred to another location, shall be fully vested in his Accrued Benefit.

 

Section 11.3          Special
Rules Pertaining to Hampton Participants Electing to Receive Periodic
Salary Continuation Payments.  In the case
of any Hampton Participant who elects, in connection with the Allied-Signal
Inc. Streamlining Program and in accordance with procedures established by the
Administrator, to receive periodic salary continuation payments rather than
lump-sum salary continuation payments, the following rules shall apply:

 

(a)           no such Hampton Participant shall be deemed to have
Separated from the Service until the last day of the final period to which his
or her periodic salary continuation payments relate (which date shall, for the
purpose of this Article, be referred to hereinafter as his or her “Severance
from Service Date”); and

 

49

 

(b)           the Compensation of each such Hampton Participant
shall, for all purposes under the Plan, be deemed to include such periodic
salary continuation payments.

 

Section 11.4          Special
Rules Pertaining to Hampton Participants Electing to Receive Salary
Continuation.  In the case of any Hampton Participant who is
not, as of his Severance from Service Date, eligible to receive the immediate
payment of any Early or Normal Retirement Benefit under the Plan and who, in
connection with the Allied-Signal Inc. Streamlining Program and in accordance
with procedures established by the Administrator, elects to receive periodic or
lump-sum salary continuation, the following rules shall apply:

 

(a)           if such Hampton Participant’s Severance from Service
Date, determined in accordance with Section 12.3(a) or in accordance
with the other provisions of the Plan, whichever is applicable, is less than or
equal to two years before the earliest date that such Hampton Participant could
have designated as his Early Commencement Date under the Plan, such Hampton Participant,
for the purpose of determining his Credited Service (and for no other purpose
under the Plan), shall be deemed to remain an Employee of the Company until the
earlier of (i) his death and (ii) the earliest date that could
have been designated as his Early Commencement Date; and

 

(b)           if such Hampton Participant’s Severance from Service
Date, determined in accordance with Section 12.3(a) or in accordance
with the other provisions of the Plan, whichever is applicable, is less than or
equal to three years before the earliest date on which such Hampton Participant
would have been eligible to receive an unreduced Retirement Benefit, such
Hampton Participant shall, for the purpose of determining his Credited Service
(and for no other purpose under the Plan), be deemed to remain an Employee of
the Company until the earlier of (i) his death and (ii) the
earliest date on which he would have been eligible to receive an unreduced
Retirement Benefit.

 

Section 11.5          Special
Rules Pertaining to Hampton Participants Electing to Receive “5+5”
Benefits.  In the case of any Hampton Participant who is
eligible for and elects, in accordance with procedures established by the
Administrator, to receive “5+5” benefits rather than periodic or lump-sum
salary continuation, the following rules shall apply upon such Hampton
Participant’s Separation from the Service:

 

(a)           notwithstanding any other provision of this Plan, five
years shall be added to such Hampton Participant’s Credited Service under the
Plan; and

 

(b)           five years shall be added to such Hampton Participant’s
age, solely for the purposes of (i) the determination of eligibility for
Early or Normal Retirement Benefits under the Plan and (ii) the
determination of the amount, if any, of applicable early reduction factors.

 

Section 11.6          Additional
Special Rule Pertaining to Hampton Participants. 
Notwithstanding any other provision of the Plan, the Benefits of Hampton
Participants shall not be reduced to cover the cost of Qualified Preretirement
Survivor Annuity coverage.

 

50

 

ARTICLE XII

SPECIAL PROVISIONS RELATING TO THE CUTBACK OF OPERATIONS AT THE LA JOLLA
LOCATION

 

Section 12.1          Applicability. 
The provisions of this Article XII shall be applicable to each
Participant or Former Participant in the Plan (a) who was actively
employed on September 30, 1985 by any member of the controlled group of
corporations of which Allied-Signal Inc. was a member on the date immediately
preceding the Spinoff and (b) whose regular place of employment on or
after June 30, 1985 was the La Jolla office of the Company, regardless of
whether such Participant may thereafter be transferred to another
location.  The Participants to whom this Article XII
is applicable shall hereinafter be referred to as “La Jolla Participants.”

 

Section 12.2          Full
Vesting.  Notwithstanding any other provision of the
Plan, each La Jolla Participant shall be fully vested in his Accrued Benefit.

 

Section 12.3          Special
Rules Pertaining to La Jolla Participants Electing to Receive Periodic
Salary Continuation Payments.  In the case
of any La Jolla Participant who, in connection with the cutback of operations
at the La Jolla location, elects, in accordance with procedures established by
the Administrator, to receive periodic salary continuation payments rather than
a lump-sum salary continuation payment, the following rules shall apply:

 

(a)           no such La Jolla Participant shall be deemed to have
Separated from the Service until the last day of the final period to which his
or her periodic salary continuation payments relate (which date shall, for the
purpose of this Article, be referred to hereinafter as his or her “Severance
from Service Date”); and

 

(b)           the Compensation of such La Jolla Participant shall,
for all purposes under the Plan, be deemed to include such periodic salary
continuation payments.

 

Section 12.4          Special
Rules Pertaining to La Jolla Participants Electing to Receive Salary
Continuation.  In the case of any La Jolla Participant who
is not, as of his Severance from Service Date, eligible to receive the
immediate payment of any Early or Normal Retirement Benefit under the Plan and
who, in connection with the cutback of operations at the La Jolla location,
elects, in accordance with procedures established by the Administrator, to
receive periodic or lump-sum salary continuation, the following rules shall
apply:

 

(a)           if such La Jolla Participant’s Severance from Service
Date, determined in accordance with Section 12.3(a) or in accordance
with the other provisions of the Plan, whichever is applicable, is less than or
equal to two years before the earliest date that such La Jolla Participant
could have designated as his Early Commencement Date under the Plan, such La
Jolla Participant, for the purpose of determining his Credited Service (and for
no other purpose under the Plan), shall be deemed to remain an Employee of the
Company until the earlier of (i) his death and (ii) the
earliest date that could have been designated as his Early Commencement Date;

 

51

 

(b)           if such La Jolla Participant’s Severance from Service
Date, determined in accordance with Section 12.3(a) or in accordance
with the other provisions of the Plan, whichever is applicable, is less than or
equal to three years before the earliest date on which such La Jolla
Participant would have been eligible to receive an unreduced Retirement
Benefit, such La Jolla Participant shall, for the purpose of determining his
Credited Service (and for no other purpose under the Plan), be deemed to remain
an Employee of the Company until the earlier of (i) his death and (ii) the
earliest date on which he would have been eligible to receive an unreduced
Retirement Benefit.

 

Section 12.5          Special
Rules Pertaining to La Jolla Participants Electing to Receive “5+5”
Benefits.  In the case of any La Jolla Participant who,
in connection with the cutback of operations at the La Jolla location, elects,
in accordance with procedures established by the Administrator, to receive “5+5”
benefits rather than periodic or lump-sum salary continuation, the following rules shall
apply upon such La Jolla Participant’s Separation from the Service:

 

(a)           notwithstanding any other provision of this Plan, five
years shall be added to such La Jolla Participant’s Credited Service under the
Plan; and

 

(b)           five years shall be added to such La Jolla Participant’s
age, solely for the purposes of (i) the determination of eligibility for
Early or Normal Retirement Benefits under the Plan and (ii) the
determination of the amount, if any, of applicable early reduction factors.

 

Section 12.6          Special Rule Pertaining to the
Calculation of Normal Retirement Benefits. 
Solely for the purpose of calculating Normal Retirement Benefits payable
under the Plan to La Jolla Participants, the term “April 1, 1971”
appearing in subsection 3.2(b)(iii) of the Plan (prior to its January 1,
1989 amendment and restatement) shall be deemed to read “July 1, 1971.”

 

ARTICLE XIII

ADDITIONAL SPECIAL RULES

 

Section 13.1          Special
Rules for Employees of Schweizer Dipple, Inc.

 

For purposes of determining the Vesting Service of any
person who was an active employee of Schweizer Dipple, Inc. on July 1,
1984, and for determining his or her eligibility for benefits under the Plan
(including eligibility for early retirement or disability benefits), but not
for purposes of determining the amount of such benefits, periods beginning at
the later of such employee’s actual commencement of employment with Schweizer
Dipple, Inc. or June 16, 1978 shall be taken into account.  For purposes of determining the amount of any
benefit under the Plan, Credited Service shall not include periods prior to July 1,
1984.

 

Section 13.2          Special
Rules for Certain Employees of Signal Capital Corporation.

 

(a)           The following rules shall apply to each person
who (i) was actively employed by Equilease Corporation on December 31,
1987, (ii) was a member of the Pension Plan for Salaried Employees
of Equilease and Prestolite Wire (the “Equilease Plan”) on December 31,
1987, (iii) was actively employed by Equilease Corporation on January 1,
1987, and (iv) became an employee of Signal Capital Corporation as
of January 1, 1988.  The persons
described in the foregoing sentence shall hereinafter be referred to as “Transferred
Equilease Employees.”

 

52

 

(b)           Each Transferred Equilease Employee shall be a
Participant in this Plan as of January 1, 1988.

 

(c)           The Credited Service of each Transferred Equilease
Employee shall include all of such Transferred Equilease Employee’s credited
service as of December 31, 1987 under Section 1.14 of the Equilease
Plan.

 

(d)           The Vesting Service of each Transferred Equilease
Employee shall include all of such Transferred Equilease Employee’s eligibility
service as of December 31, 1987 under Section 1.17 of the Equilease
Plan.

 

(e)           The benefit of a Transferred Equilease Employee shall
be calculated in the manner set forth in Section 8.8.3 of this Plan, to
the extent that such Transferred Equilease Employee is entitled to receive a
benefit from the Equilease Plan.  The
foregoing sentence shall not apply if all assets allocable to such employee are
transferred from the trust under the Equilease Plan to the Trust Fund prior to
the calculation of such Transferred Equilease Employee’s benefit hereunder.

 

(f)            Subject to the transfer of all assets allocable to a
Transferred Equilease Employee from the trust under the Equilease Plan to the
Trust Fund, such Transferred Equilease Plan to the Trust Fund, such Transferred
Equilease Employee shall be entitled to a minimum vested benefit under this
Plan equal or equivalent to his accrued benefit as of December 31, 1987
under the Equilease Plan, determined as of such date under the provisions of
the Equilease Plan as then in effect and shall be entitled to the payment of
such benefit in accordance with the provisions of the Equilease Plan as in
effect on December 31, 1987.  No
Transferred Equilease Employee shall be entitled to receive any other benefit
except in accordance with the terms of this Plan.

 

(g)           No benefit payable pursuant to this Section 13.2
shall duplicate any benefit payable under the Equilease Plan.

 

Section 13.3          Special
Rules Applicable to Certain Former Employees of Equilease Corporation.

 

(a)           The following rules shall apply to each Person
who was (i) a retired member or terminated vested member of the Pension
Plan for Salaried Employees of Equilease and Prestolite Wire (the “Equilease
Plan”) on December 31, 1987, or who (ii) was a member of the
Equilease Plan on December 31, 1987, is not a Transferred Equilease
Employee described in the preceding section and was as of January 1, 1988
a “commuter” employee at the Hampton facility of the Company or receiving
salary continuation in connection with the shutdown of Equilease Corporation’s
operations.  The persons described in the
foregoing sentence shall hereinafter be referred to as “Former Equilease
Employees”.

 

53

 

(b)           Subject to the transfer from the trust under the
Equilease Plan to the Trust Fund of all Equilease Plan assets allocable to the
Former Equilease Employees,

 

(i)            each retired Former Equilease Employee
shall receive from the Plan the benefit to which he was entitled as of December 31,
1987 under the terms of the Equilease Plan as in effect on that date, payable
in accordance with the terms of the Equilease Plan as in effect on that date,

 

(ii)           each terminated vested Former Equilease
Employee shall be entitled to receive from the Plan a benefit equal or
actuarially equivalent to his accrued benefit as of December 31, 1987
under the Equilease Plan, payable in accordance with the terms of the Equilease
Plan as in effect on that date, and

 

(iii)          the benefit under the Plan of each Former
Equilease Employee who continues to work at the Hampton location as a “commuter”
employee or receives salary continuation shall be calculated and payable in
accordance with the terms of the Equilease Plan as in effect on December 31,
1987, including credited service under section 1.14 of the Equilease Plan for
periods of “commuter” employment and salary continuation.

 

(c)           No benefit payable pursuant to this Section 13.3
shall duplicate any benefit payable under the Equilease Plan.

 

Section 13.4          Additional
Special Rules Applicable to Certain Employees of Signal Capital
Corporation.

 

(a)           The rules set forth in this subsection 13.4(a) shall
apply to each Employee of Signal Capital Corporation who became an Employee in
connection with the December 12, 1985 acquisition of assets of First City
Financial Corporation (“FCFC Employees”). 
For purposes of determining each FCFC Employee’s eligibility to
participate, Credited Service and Vesting Service under the Plan, periods of
employment prior to January 1, 1986 with FCFC or with any member of the
controlled group of corporations of which FCFC was a member at the time of such
employment shall be taken into account.

 

(b)           The rules set forth in this subsection 13.4(b) shall
apply to each Employee of Signal Capital Corporation who became an Employee in
connection with the May 22, 1986 acquisition of assets of First
Asset-Based Lending (“FABL Employees”). 
For purposes of determining each FABL Employee’s  Vesting Service and eligibility to
participate in the Plan, periods of employment prior to May 22, 1986 with
FABL, but not periods of service with First National Bank and Trust Company of
Oklahoma City or First Oklahoma Bank Corporation, Inc., shall be taken
into account.

 

54

 

ARTICLE XIV

 

SPECIAL PROVISIONS
RELATING TO FORMER PARTICIPANTS IN THE ENGINEERING RESEARCH, INCORPORATED
RETIREMENT PLAN FOR SALARIED EMPLOYEES AND THE ENGINEERING RESEARCH, INC.
HOURLY EMPLOYEES PENSION PLAN

 

Section 14.1         General.

 

(a)           Effective January 1, 1984, Engineering Research,
Incorporated (“ERI”) established the Engineering Research, Incorporated
Retirement Plan for Salaried Employees (the “ERI Salaried Plan”) to provide
retirement benefits for salaried employees of ERI.  The Engineering Research, Inc. Hourly
Employees Pension Plan (the “ERI Hourly Plan” and, together with the ERI
Salaried Plan, the “ERI Plans”) was established effective January 1, 1984
to provide retirement benefits for certain hourly employees of ERI.  On February 27, 1987, substantially all
of the assets of ERI were sold to Babcock and Wilcox (“B&W”).  In connection with the sale, benefit accruals
under the ERI Plans were frozen as of February 27, 1987, and offers of
employment were made to plan participants by B&W.  Effective December 31, 1988, the ERI
Plans were merged with this Plan, and participants in the ERI Plans became
participants in this Plan for the limited purpose of receiving their benefits
accrued under the ERI Plans.  Subject to
this Plan’s provisions of general applicability (including such provisions that
are legally required), former participants in the ERI Salaried Plan (“ERI
Salaried Participants”) and former participants in the ERI Hourly Plan (“ERI
Hourly Participants” and, together with ERI Salaried  Participants, “ERI Participants”) shall be entitled
to benefits under this Plan only as set forth in this Article XIV, unless
any such ERI Participant qualifies for participation in the Plan other than
pursuant to this Article XIV. 
Except as otherwise provided in this Article XIV, the rights and
obligations of each person covered by an ERI Plan who retired, or whose
employment was otherwise terminated prior to December 31, 1988, shall be
governed by the applicable provisions of the ERI Plans as in effect on such
person’s retirement or termination date. 
Effective January 1, 1990, all assets allocable to the benefits of
ERI Participants were transferred to the trust established under The Henley
Group, Inc. Retirement Plan.  No
benefits under this Plan shall duplicate benefits payable under that plan.

 

(b)           For purposes of this Article XIV, unless
otherwise indicated, the term “Company” shall mean the Company as defined in Section 1.14,
ERI, B&W and their respective affiliates required to be treated as under
common control with such entities pursuant to section 414(b),(c),(m) or
(o) of the Code.

 

Section 14.2          Participation. 
A person who was a participant or former participant in either ERI Plan
on December 31, 1988 shall become an ERI Participant in this Plan for
purposes of receiving the benefits described in this Article, effective December 31,
1988.

 

Section 14.3          ERI
Salaried Participants.

 

55

 

Section 14.3.1      Continuous Service.

 

(a)           The Continuous Service of an ERI Salaried Participant
shall for purposes of this Article XIV be the sum of his Pre-February 28,
1987 Service and his Post-February 27, 1987 Service.

 

(b)           Pre-February 28, 1987 Service. 
The Pre-February 28, 1987 Service of an ERI Salaried Participant
shall be equal to his Continuous Service accrued under Section IX(1) of
the ERI Salaried Plan as of February 27, 1987.

 

(c)           Post-February 27, 1987 Service. 
The Post-February 27, 1987 Service of an ERI Salaried Participant
shall consist of such ERI Salaried Participant’s service with the Company after
February 27, 1987 until such service is interrupted by (i) Discharge
for cause, (ii) quitting by the employee or (iii) retirement.  If an ERI Salaried Participant’s service is
terminated and such Participant is subsequently rehired by the Company, the duration
of service up to such termination will be reinstated.

 

Periods of absence from work, other than those which
break continuity of service as provided in the preceding paragraph, will be
counted in determining length of continuous service except when the total
period of absence of an ERI Salaried Participant in any consecutive twelve (12)
month period exceeds twelve (12) months.

 

Section 14.3.2      Retirement.

 

(a)           An ERI Salaried Participant who is employed by the
Company, upon attaining the age of 65 years, or at any time thereafter, may
request retirement, and will be retired.

 

(b)           An ERI Salaried Participant with 10 or more years of
Continuous Service who is employed by the Company, upon attaining the age of 60
years, or at any time thereafter, may request retirement, and will be retired.

 

(c)           An ERI Salaried Participant not eligible for a pension
under Section 14.3.2(a), (b) or (d) hereof, whose employment is
to be terminated, shall be entitled to elect to be pensioned on the first of
the month following such termination provided:

 

(i)            the ERI Salaried Participant’s age and
number of years of Continuous Service, when added together, equal or exceed 80;
or

 

(ii)           the ERI Salaried Participant has
completed at least 15 years of Continuous Service and would have been eligible
for a pension under Section 14.3.2(a), (b) or (e) within the
next 10 years if employment with the Company had continued.

 

(d)           Notwithstanding any other provisions of the Plan, an
ERI Salaried Participant upon attaining the age of 65 years shall, prior to
actual retirement or termination of employment, begin receiving pension
benefits under this Article XIV on the first of the month following
attainment of such age.

 

56

 

(e)           Regardless of age, any ERI Salaried Participant with
at least 10 years of Continuous Service who shall have become permanently
incapacitated through some unavoidable cause while employed by the Company will
be retired.

 

An ERI Salaried Participant shall be “permanently
incapacitated” only if (i) the ERI Salaried Participant has been
totally disabled by bodily injury or disease while actively employed so that
the ERI Salaried Participant cannot regularly engage in any substantial,
full-time activity for compensation or profit, (ii) such disability
shall have continued for at least three consecutive months, and (iii) in
the opinion of a licensed practicing physician, such disability will be
continuous throughout the ERI Salaried Participant’s life.

 

For the purposes of retirement with pension under this
Plan, incapacity shall not be deemed to have resulted from an unavoidable cause
if such incapacity is occasioned by self-inflicted injury, or as a result of
participating in a criminal activity.

 

A pension because of permanent incapacity under clause
of this Section 14.3.2 shall continue only so long as the pensioner shall
be permanently incapacitated, and the Administrator may require an individual
pensioned under this clause to submit to a medical examination at any
reasonable time by a licensed practicing physician.

 

A pensioner will be conclusively presumed to be
regularly engaged in substantial, full-time activity for compensation or
profit, and therefore no longer permanently incapacitated, if the pensioner
engages in any activity for compensation or profit from which the pensioner
derives income, the annual amount of which, together with the amount of any
pension received from the Company, exceeds the annual compensation the ERI
Salaried Participant would presently receive if the employee were still
employed on the job held at the time the employee was disabled.

 

Section 14.3.3      Amount and Payment of Pension.

 

Subject to the provisions of Section 14.3.2(d) regarding
commencement of benefits, an ERI Salaried Participant meeting the eligibility
requirements will be entitled to receive a pension each month beginning with
the month following that in which retirement takes place and ending with the
month in which the ERI Salaried Participant dies.  The amount of such pension will be determined
as follows:

 

(a)           If an ERI Salaried Participant is retired under the
provisions of Section 14.3.2(a) or (d), or is entitled to pension
benefits under the provisions of Section 14.3.2(d), the ERI Salaried
Participant’s pension shall be equal to the greater of (i) or (ii) below:

 

(i)            1.1% of the average monthly pay received
during the highest paid five of the last ten calendar years of employment with
ERI (ending on or before February 27, 1987) multiplied by his number of
years of Pre-February 28, 1987 Service;

 

(ii)           $100.00.

 

57

 

If it will result in a higher pension, however, an ERI
Salaried Participant whose Pre-February 27, 1987 Service ceased to accrue
before December 31 of any calendar year will, for the purpose of
determining such average monthly pay, be given the benefit of earnings in the
year such service ceased in lieu of earnings during an equivalent portion of
the earliest of such highest paid five years, provided that no amounts
earned after February 27, 1987 shall be taken into account.

 

(b)           If an ERI Salaried Participant is retired under the
provisions of Section 14.3.2(b) or (c), the ERI Salaried Participant’s
pension will be calculated in accordance with the formula set forth in Section 14.3.3(a) above,
and then reduced by 5/9 of 1% for each of the first 60 months by which the
pension commencement date precedes the calendar month following the ERI
Salaried Participant’s 65th birthday, plus 5/18 of 1% for each additional month
by which the pension commencement date precedes the calendar month following
the ERI Salaried Participant’s 65th birthday.

 

(c)           Any amount paid to or on behalf of any pensioner as
reimbursement for loss of earnings resulting from occupational injury or
disease for which the Company (which term for purposes of this subsection
14.3.3(c) shall mean the Company as defined in Section 1.14, ERI, and
their respective affiliates required to be treated as under common control with
them pursuant to section 414(b), (c), (m) or (o) of the Code) is
liable, whether pursuant to Workmen’s Compensation or occupational disease
laws, or arising otherwise from the statutory or common law (except fixed
statutory payment for the permanent total or partial loss of one or any bodily
member, and except for payments for medical expenses) and any disability
payment in the nature of a pension under any Federal or State law shall be
deducted from or charged against the amount of any pension payable under this Section 14.3.3.  However, Social Security payments and
allowances for disabilities incurred in the military service of the United
States will not be so deducted or charged.

 

(d)           The Administrator shall pay in a lump sum any pension
having a present value of $5,000 or less. 
The lump sum payment to an ERI Salaried Participant will be the monthly
pension payable at the later of age 65 or pension commencement age multiplied
by the factor from Column A for the age of the ERI Salaried Participant when
the lump sum benefit will be paid.  The
lump sum payment to an ERI Salaried Participant’s surviving spouse will be the
spouse’s monthly pension multiplied by the factor from Column B for the age of
the spouse at the date the spouse’s pension will commence, and further
multiplied by the ratio of the factor in Column A for the age of the spouse at
the ERI Salaried Participant’s death to the factor in Column A for the age of
the spouse at the date the spouse’s pension will commence (or age 65 if age 65
is earlier than such commencement age).

 

58

 

	
  Age

  	
   

  	
  Column A

  	
   

  	
  Column B

  	
   

  	
  Age

  	
   

  	
  Column A

  	
   

  	
  Column B

  	
   

  
	
  75 &
  over

  	
   

  	
  77

  	
   

  	
  77

  	
   

  	
  54

  	
   

  	
  43

  	
   

  	
  134

  	
   

  
	
  74

  	
   

  	
  80

  	
   

  	
  80

  	
   

  	
  53

  	
   

  	
  41

  	
   

  	
  140

  	
   

  
	
  73

  	
   

  	
  82

  	
   

  	
  82

  	
   

  	
  52

  	
   

  	
  38

  	
   

  	
  141

  	
   

  
	
  72

  	
   

  	
  85

  	
   

  	
  85

  	
   

  	
  51

  	
   

  	
  36

  	
   

  	
  145

  	
   

  
	
  71

  	
   

  	
  87

  	
   

  	
  87

  	
   

  	
  50

  	
   

  	
  33

  	
   

  	
  145

  	
   

  
	
  70

  	
   

  	
  90

  	
   

  	
  90

  	
   

  	
  49

  	
   

  	
  32

  	
   

  	
  152

  	
   

  
	
  69

  	
   

  	
  92

  	
   

  	
  92

  	
   

  	
  48

  	
   

  	
  31

  	
   

  	
  159

  	
   

  
	
  68

  	
   

  	
  95

  	
   

  	
  95

  	
   

  	
  47

  	
   

  	
  29

  	
   

  	
  161

  	
   

  
	
  67

  	
   

  	
  97

  	
   

  	
  97

  	
   

  	
  46

  	
   

  	
  28

  	
   

  	
  167

  	
   

  
	
  66

  	
   

  	
  99

  	
   

  	
  99

  	
   

  	
  45

  	
   

  	
  27

  	
   

  	
  173

  	
   

  
	
  65

  	
   

  	
  102

  	
   

  	
  102

  	
   

  	
  44

  	
   

  	
  26

  	
   

  	
  178

  	
   

  
	
  64

  	
   

  	
  93

  	
   

  	
  105

  	
   

  	
  43

  	
   

  	
  25

  	
   

  	
  183

  	
   

  
	
  63

  	
   

  	
  85

  	
   

  	
  107

  	
   

  	
  42

  	
   

  	
  24

  	
   

  	
  188

  	
   

  
	
  62

  	
   

  	
  78

  	
   

  	
  110

  	
   

  	
  41

  	
   

  	
  23

  	
   

  	
  192

  	
   

  
	
  61

  	
   

  	
  72

  	
   

  	
  113

  	
   

  	
  40

  	
   

  	
  22

  	
   

  	
  195

  	
   

  
	
  60

  	
   

  	
  66

  	
   

  	
  115

  	
   

  	
  39

  	
   

  	
  21

  	
   

  	
  198

  	
   

  
	
  59

  	
   

  	
  61

  	
   

  	
  118

  	
   

  	
  38

  	
   

  	
  20

  	
   

  	
  200

  	
   

  
	
  58

  	
   

  	
  56

  	
   

  	
  120

  	
   

  	
  37

  	
   

  	
  19

  	
   

  	
  202

  	
   

  
	
  57

  	
   

  	
  53

  	
   

  	
  125

  	
   

  	
  36

  	
   

  	
  19

  	
   

  	
  214

  	
   

  
	
  56

  	
   

  	
  49

  	
   

  	
  127

  	
   

  	
  35 & under

  	
   

  	
  18

  	
   

  	
  214

  	
   

  
	
  55

  	
   

  	
  46

  	
   

  	
  131

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

Notwithstanding the foregoing, the above table will
not be used if a greater lump sum payment is derived by using the UP-1984
Mortality Table, with an interest rate that is not greater than the immediate
or deferred rate used by the Pension Benefit Guaranty Corporation to determine
the present value of a lump sum distribution upon plan termination.  The rate(s) used shall be the rate(s) in
effect on the January 1 of the year in which the Annuity Starting Date
occurs.  No distribution may be made
under this Section 14.3.3(d) after the Annuity Starting Date unless
the ERI Salaried Participant and the ERI Salaried Participant’s spouse (or
where the ERI Salaried Participant has died, the surviving spouse) consents in
a notarized writing to such distribution.

 

(e)           The payment of benefits under this Section 14.3.3
shall be subject to the requirements of Section 3.16 of the Plan.

 

Section 14.3.4        Vested Right to Deferred Pension.

 

Effective February 27, 1987, the accrued benefit
as of such date of each employee covered by the ERI Salaried Plan became 100%
vested.  Any other ERI Salaried
Participant shall acquire a right to a deferred pension if such ERI Salaried Participant’s
employment is terminated, and the ERI Salaried Participant is not retired under
any of the provisions of Section 14.3.2 hereof, provided such ERI Salaried
Participant has attained age 65 or has 10 years or more of Continuous Service
immediately prior to such termination, or has 9 years of Continuous Service and
is employed by the Company for at least 1,000 hours in the tenth year of such
service immediately prior to such termination (provided that, in the
case of an ERI Salaried Participant with one or more Hours of Service after December 31,
1988, the numbers 5 and 4 shall be substituted for the numbers 10 and 9 in
the foregoing sentence).

 

59

 

For purposes of this provision, a year shall mean any
12-month period, commencing on an ERI Salaried Participant’s date of hire and
during which the ERI Salaried Participant continues to be employed by the
employer and shall include for vesting and eligibility purposes only all
periods of absence for up to one year, provided the ERI Salaried Participant
resumes participation under the Plan; fractional portions of a year, whether or
not consecutive, shall be aggregated; an hour of employment shall mean an hour
for which a person was directly or indirectly paid, or entitled to payment, by
the employer for the performance of duties; and employment with any employer
during or prior to the time such employer is controlled by the Company shall be
deemed to be employment with the Company.

 

An ERI Salaried Participant so entitled to a deferred
pension will receive pension payments for each month beginning with the month
following that in which the ERI Salaried Participant attains age 65 and ending
with the month in which the pensioner dies. 
If a joint and survivor option is in effect, however, in accordance with
Section 14.3.6 the payments provided for by such option will be continued
during the life of a surviving spouse.

 

Subject to Section 14.3.3(c), each monthly
pension payment will be an amount to be determined by applying the formula set
forth in Section 14.3.3(a)(i) hereof, using as a basis the number of
years of the ERI Salaried Participant’s Continuous Service at the earlier of
the time of termination of employment and February 27, 1987.

 

An ERI Salaried Participant so entitled to a deferred
pension may elect to have pension payments begin any month after the employee
has attained age 55, in which case the amount of monthly pension, determined as
provided in the preceding paragraph of this Section 14.3.4, shall be
reduced by 5/9 of 1% for each of the first 60 months by which such pension
commencement date precedes the calendar month following the ERI Salaried
Participant’s 65th birthday, plus 5/18 of 1% for each additional month by which
the pension commencement date precedes the calendar month following the ERI
Salaried Participant’s 65th birthday.

 

Section 14.3.5        Social Security Option.

 

Subject to the spousal consent provisions of Section 14.3.6,
an ERI Salaried Participant retiring under the provisions of Section 14.3.2(b) or
(c) hereof before the ERI Salaried Participant first becomes eligible to
receive Social Security payments may elect to receive a retirement income
providing larger monthly payments, in lieu of the retirement income otherwise
payable upon early retirement, until the date the ERI Salaried Participant
first becomes eligible to receive Social Security payments; thereafter, the
monthly payments shall be reduced by the approximate amount of the ERI Salaried
Participant’s monthly Social Security benefit. 
Insofar as practical, therefore, a level total retirement income will be
available for the participant.  This
option is not available, however, if an option is elected by the ERI Salaried
Participant under the provisions of Section 14.3.6.  Such larger payments shall equal such
retirement income otherwise payable plus the following percentage of such
approximate amount of the ERI Salaried Participant’s monthly Social Security
benefit:

 

60

 

	
  Number of years until the

  ERI Salaried Participant first becomes

  eligible to receive Social Security payments

  	
   

  	
  Level

  Income

  Percentage

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  0

  	
   

  	
  100

  	
  %

  	
   

  
	
  1

  	
   

  	
  89

  	
  %

  	
   

  
	
  2

  	
   

  	
  80

  	
  %

  	
   

  
	
  3

  	
   

  	
  71

  	
  %

  	
   

  
	
  4

  	
   

  	
  64

  	
  %

  	
   

  
	
  5

  	
   

  	
  57

  	
  %

  	
   

  

 

	
  Number of years until the

  ERI Salaried Participant first becomes

  eligible to receive Social Security payments

  	
   

  	
  Level

  Income

  Percentage

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  6

  	
   

  	
  52

  	
  %

  	
   

  
	
  7

  	
   

  	
  47

  	
  %

  	
   

  
	
  8

  	
   

  	
  42

  	
  %

  	
   

  
	
  9

  	
   

  	
  38

  	
  %

  	
   

  
	
  10

  	
   

  	
  34

  	
  %

  	
   

  
	
  11

  	
   

  	
  31

  	
  %

  	
   

  
	
  12

  	
   

  	
  28

  	
  %

  	
   

  
	
  13

  	
   

  	
  26

  	
  %

  	
   

  
	
  14

  	
   

  	
  24

  	
  %

  	
   

  
	
  15 or more

  	
   

  	
  21

  	
  %

  	
   

  
	
  (interpolate for
  fractional years)

  	
   

  	
   

  	
   

  	
   

  

 

If, however, such larger monthly payments, as
determined above, are smaller than such approximate amount of the employee’s
Social Security benefit, such larger monthly payments shall instead equal the
monthly pension otherwise payable divided by the complement of the applicable
level income percentage.

 

Section 14.3.6       Joint and Survivor Options.

 

(a)           Pre-retirement Survivor Annuity. 
The provisions of this Section shall apply to any ERI Salaried
Participant who is credited with at least one Hour of Service on or after August 23,
1984, and such other ERI Salaried Participants as have elected coverage in
accordance with Article VIII(1)(e) of the ERI Salaried Plan.  If an ERI Salaried Participant dies after the
date on which the ERI Salaried Participant is vested in accordance with the
first paragraph of Section 14.3.4 and before retiring, or a retired ERI
Salaried Participant who has not elected otherwise dies prior to the
commencement of benefits, the spouse of such ERI Salaried Participant shall be
entitled to pension payments in the form of a Pre-retirement Survivor Annuity
in accordance with the following provisions:

 

61

 

(i)                                     If the ERI Salaried Participant dies
after becoming eligible for early retirement under Section 14.3.2(b) or
(c), the spouse will receive pension payments for each month beginning with the
month following the month in which the ERI Salaried Participant’s death
occurs.  If the ERI Salaried Participant
dies before becoming eligible for early retirement, the spouse will receive
pension payments beginning with the first of the month coinciding with or next
following the ERI Salaried Participant’s earliest retirement age, unless the
spouse elects a later date.

 

(ii)                                  The monthly pension payment to the spouse
shall be an amount to be determined (A) by applying the formula set
forth in Section 14.3.3(a) hereof (or a predecessor section of the
ERI Salaried Plan), as in effect at the time of the ERI Salaried Participant’s
death or earlier termination, using as a basis the number of years of the ERI
Salaried Participant’s Pre-February 27, 1987 Service, (B) reduced
by 5/9 of 1% for each of the first 60 months by which the commencement date of
pension payments to the spouse precedes the calendar month following the ERI Salaried
Participant’s 65th birthday, plus 5/18 of 1% for each additional month by which
the commencement date precedes the calendar month following the ERI Salaried
Participant’s 65th birthday, (C) reduced to reflect the amount the
spouse would receive as though an Option II (as defined below) form of pension
payments had been elected to take effect at the date of commencement of pension
payments to the spouse, and (D) reduced further by any coverage
factors applicable under Section 14.3.6(v).

 

(iii)                               Terminated ERI Salaried Participants
entitled to a deferred pension may waive a Pre-retirement Survivor Annuity in
writing at any time after the date of separation.  The waiver must be consented to by the
employee’s spouse, and the spouse’s consent must acknowledge the effect of such
rejection and must be witnessed by a notary public.  A revocation of a prior waiver may be made by
the ERI Salaried Participant without the consent of the spouse at any time
before the commencement of benefits.  The
number of revocations shall not be limited.

 

(iv)                              The Administrator shall provide each
terminated ERI Salaried Participant entitled to a deferred pension with a
written explanation of the Pre-retirement Survivor Annuity in such terms and in
such manner as would be comparable to the explanation provided for meeting the
requirements applicable to Joint and Survivor Annuity specified in Section 14.3.6(b).

 

62

 

(v)                                 The monthly pension payable to a
terminated ERI Salaried Participant will be reduced for the Pre-retirement
Survivor Annuity coverage by the appropriate factor from the table below
multiplied by the number of full years the coverage has been in effect after December 31,
1984.

 

	
   

  	
   

  	
  Reduction for Each Full

  Year of Coverage After

  Termination of Employment

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Prior to Age 65

  	
   

  	
  .3%

  	
   

  
	
  After Age 65

  	
   

  	
  None

  	
   

  

 

(b)           Joint and Survivor Option. 
Subject to the conditions hereinafter set forth in Section 14.3.6(b)(ii),
if an ERI Salaried Participant shall be married at the beginning of the
calendar month in which pension payments are to commence under the Plan, and
unless the ERI Salaried Participant otherwise elects, the amount of each such
pension payment which would otherwise be payable shall be reduced; and if the
spouse shall survive the ERI Salaried Participant, a pension shall be payable
under the Plan to the spouse during such spouse’s remaining lifetime after the
ERI Salaried Participant’s death in an amount equal to 50% of the ERI Salaried
Participant’s reduced pension payment in accordance with Option II.

 

(i)                                     Every ERI Salaried Participant who is
married when benefits are to commence will receive a written explanation of:

 

(A)                              The terms and conditions of the Joint and
Survivor Option form of benefit;

 

(B)                                The ERI Salaried Participant’s right to
make, and the effect of, an election to waive the Joint and Survivor Option
form of benefit;

 

(C)                                The rights of an ERI Salaried Participant’s
spouse; and

 

(D)                               The right to make, and the effect of, a
revocation of a previous election to waive the Joint and Survivor Option.

 

An ERI Salaried Participant may elect in writing, at
any time during the 90-day period ending on the Annuity Starting Date, to
reject the Joint and Survivor Option form of benefit and receive the normal
form or an optional form of benefit. 
Such rejection must be accompanied by written spousal consent which
acknowledges the effect of the election and is witnessed by a notary
public.  Any rejection of the Joint and
Survivor Option form of benefit may be cancelled by written election at any
time prior to the date that benefits commence.

 

63

 

(ii)                                  If an ERI Salaried Participant wishes to
have pension payments made to his spouse following his death in excess of that
provided in the first paragraph of Section 14.3.6(b) above, the ERI
Salaried Participant may so elect prior to retirement.  An ERI Salaried Participant who makes such an
election will receive a reduced pension during the ERI Salaried Participant’s
lifetime after retirement, and following the ERI Salaried Participant’s death
the same level of pension (Option I), or one-half of it (Option II), or
three-fourths of it (Option III), as the ERI Salaried Participant specified
when the election was made, will be continued to the ERI Salaried Participant’s
spouse during such spouse’s remaining life.

 

The pension of an ERI Salaried Participant electing
Option I, II or III shall be reduced 19%, 11% or 15%, respectively, plus
an additional reduction of 0.500%, 0.250% or 0.375%, respectively, for each
full year in excess of three by which the ERI Salaried Participant’s birthdate
precedes the spouse’s birthdate, to a maximum reduction (after 20 such excess
years) of 29%, 16% or 22.5%, respectively; or minus 0.500%, 0.250% or 0.375%, respectively,
for each full year in excess of three by which the spouse’s birthdate precedes
the ERI Salaried Participant’s birthdate, to a minimum net reduction (after 10
such excess years) of 14%, 8.5% or 11.25%, respectively.

 

(iii)                               If an ERI Salaried Participant chooses to
elect an option, written notice must be given to the Administrator, and the
employee must furnish proof of the spouse’s age.

 

(iv)                              If an ERI Salaried Participant or the ERI
Salaried Participant’s spouse dies before the option has become effective, the
option is automatically cancelled.

 

(v)                                 If the ERI Salaried Participant’s spouse
dies after the option has become effective and after the ERI Salaried
Participant has retired, the pension payments to the ERI Salaried Participant
will remain unchanged.

 

(vi)                              An option may be cancelled or modified by
the ERI Salaried Participant before the ERI Salaried Participant retires, by
written notice filed with the Administrator.

 

(vii)                           An ERI Salaried Participant who acquires
a vested interest in a pension under the provisions of Section 14.3.4 may
elect a joint and survivor option in the same manner and under the same terms
and conditions as an ERI Salaried Participant who is pensioned immediately upon
termination of employment.  For this
purpose, the vestee’s retirement date will be deemed to be the first date the
vestee is entitled to receive deferred pension payments under Section 14.3.4.

 

64

 

Section 14.3.7       Computation of Average Monthly Pay.

 

In computing an employee’s average monthly pay for the
purposes of Section 14.3.3 hereof, the total compensation the employee
received during the applicable period (ending on or before February 27,
1987) shall be divided by 60.  However,
if during the applicable period, a calendar month or more of absence shall have
occurred which does not break the continuity of service and in respect to which
absence the employee received no compensation from the Company, the number 60
shall be reduced by the number of full calendar months of such absence.

 

Section 14.3.8       Employment of Pensioners.

 

An ERI Salaried Participant receiving early retirement
benefits under the Plan, who is reemployed by the Company (as defined in Section 1.14
and including for this purpose all entities required to be treated as under
common control with such Company under sections 414(b), (c), (m) and (o) of
the Code) prior to attaining age 65 or 40 or more hours in any calendar month
after commencement of such benefits and who has received the notice required by
29 Code of Federal Regulations Section 2530.203-3(b)(4), will have the
pension permanently suspended during such reemployment.  Upon termination of such reemployment, or if
sooner, attainment of age 65, the ERI Salaried Participant’s monthly pension
will be recomputed so as to give effect to the additional service and the
compensation received during such reemployment to the extent such service and
compensation are required to be taken into account for benefit accrual purposes
under Plan provisions other than this Article XIV.  The pension of such reemployed pensioner will
be reduced by 0.9% of the sum of the early retirement benefits previously
received.  If such recomputed pension
exceeds that paid immediately prior to such reemployment, the employee shall be
entitled to receive the monthly pension as so recomputed.  Notwithstanding the two preceding sentences,
in no event will the monthly pension payable upon recommencement be less than
that previously paid.”

 

Section 14.4          ERI
Hourly Participants.

 

Section 14.4.1       Credited Service and Eligibility Service.

 

(a)           Credited Service.  The Credited
Service of an ERI Hourly Participant shall for purposes of this Article XIV
be equal to his Credited Service under the ERI Hourly Plan as of February 27,
1987.

 

(b)           Eligibility Service.  The
Eligibility Service of an ERI Hourly Participant shall for purposes of this Article XIV
be the sum of his Pre-February 28, 1987 Eligibility Service and his Post-February 27,
1987 Eligibility Service.  If at the date
of an Employee’s retirement or termination of employment with the Company, his
Eligibility Service is less than his Credited Service with the Company, his
Eligibility Service shall be deemed to equal his Credited Service.

 

(i)                                     Pre-February 28, 1987 Eligibility Service. 
The Pre-February 28, 1987 Eligibility Service of an ERI Hourly
Participant shall be equal to his Eligibility Service accrued under Article VI(3) of
the ERI Hourly Plan as of February 27, 1987.

 

65

 

(ii)                                  Post-February 27, 1987 Eligibility
Service.  The Post-February 27, 1987 Eligibility
Service of an ERI Hourly Participant shall be computed for each ERI Hourly
Participant on the basis of total hours compensated by the Company during each
calendar year, with one year of Eligibility Service being recognized for each
calendar year in which the ERI Hourly Participant receives compensation for
1,000 hours or more (including as compensated hours the hours referred to in
subsections 2(b) through 2(f) of Article VI of the ERI Hourly
Plan as in effect on December 31, 1988, in accordance with subsection 2(g) of
such Article VI).  No proportionate
or partial credits shall be given for the purpose of computing Eligibility
Service.  Hours of pay at premium rates
shall be computed as straight-time hours.

 

Section 14.4.2       Requirements for Retirement Pensions and Deferred
Vested Pensions.

 

(a)           For purposes of this Section 14.4, the term “Pension”
shall mean a series of uniform monthly payments payable to an ERI Hourly Participant,
the first such payment to be made as of the beginning of the month following
the last day of employment immediately prior to retirement, or such other date
specified for that purpose, and the last payment to be made as of the beginning
of the month in which the death of the ERI Hourly Participant occurs, or in
which the Disability (as defined in Section 14.4.7) ends or, in the case
of an Early Retirement Pension payable pursuant to Section 14.4.3(b) in
which reemployment occurs prior to Normal Retirement Date.

 

(b)           An ERI Hourly Participant shall be considered as
retired under the Plan and as becoming a retired or disabled ERI Hourly
Participant entitled to a Pension, upon termination of employment, provided
such retirement occurs while the ERI Hourly Participant is employed by the
Company and:

 

(i)                                     after the first date he has attained age
65 (for purposes of this Section 14.4, his Normal Retirement Date), or

 

(ii)                                  after age 60 but prior to age 65 and
after 10 years of Eligibility Service, provided that if he retires at his
option he shall be eligible for an Early Retirement Pension as provided in Section 14.4.3(b)(i) (provided
that, if an ERI Hourly Participant is discharged for cause, he shall be deemed
to have retired at his option), or

 

(iii)                               after age 60 but prior to age 65 and
after 10 years of Eligibility Service, provided that if he retires at the
option of B&W and under mutually satisfactory conditions he shall be
eligible for an Early Retirement Pension as provided in Section 14.4.3(b)(ii),
or

 

(iv)                              after 10 years of Eligibility Service in
the event termination is caused by Disability and the ERI Hourly Participant is
so disabled prior to reaching age 65.

 

66

 

(c)           Notwithstanding any other provisions of the Plan, an
ERI Hourly Participant whose employment terminates, and (i) who (A) became
vested in his accrued benefit effective February 27, 1987 pursuant to Article XIII
of the ERI Hourly Plan or (B) at the time of such termination shall
have 10 or more years of Eligibility Service (5 or more years of Eligibility
Service in the case of an ERI Hourly Participant with one or more Hours of
Service after December 31, 1988), and (ii) who shall not be eligible
for or receiving any other pension under the Plan based (in whole or in part)
on Credited Service prior to the date of such termination, shall be entitled to
a Deferred Vested Pension as provided in Section 14.4.3(d) of the
Plan.

 

(d)           Notwithstanding any other provisions of the Plan, an
ERI Hourly Participant or surviving spouse entitled to receive a Pension may,
for personal reasons and without disclosure thereof, request the Administrator
in writing to suspend for any period payment of all or any part of such Pension
otherwise payable to him hereunder.  The
Administrator, on receipt of such request, shall authorize such suspension, in
which event the ERI Hourly Participant shall be deemed to have forfeited all
rights to the amount of pension so suspended, but shall retain the right to
have the full Pension otherwise payable to him hereunder reinstated as to
future monthly payments upon written notice to the Administrator of his desire
to revoke his prior request for a suspension under this paragraph.  Any suspension requested hereunder by an ERI
Hourly Participant or benefits payable to him under the Plan shall not affect
benefits payable under any survivorship election he has made or is deemed to
have made under the Plan.

 

(e)           Payment of benefits will, unless the ERI Hourly
Participant elects a later date, begin not later than the later of (i) sixty
days after the close of the Plan Year in which the ERI Hourly Participant
attains the earlier of age 65 or the Normal Retirement Date or (ii) sixty
days after the end of the Plan Year in which the ERI Hourly Participant’s
employment terminates.  The payment of
benefits shall be further subject to Section 3.16.

 

(f)            Notwithstanding any other provisions of the Plan an
ERI Hourly Participant, upon attaining the age of 65, shall, prior to
retirement or termination of employment, begin receiving a Pension on the first
of the month following attainment of such age.

 

Section 14.4.3       Retirement and Other Benefits.

 

(a)           Normal Retirement Pension. 
The amount of the monthly Pension payable out of the Trust to an ERI Hourly
Participant upon or after reaching age 65 under the conditions of Section 14.4.2(b) of
the Plan, and who shall make application therefor, or to an ERI Hourly
Participant entitled to a Pension in accordance with Section 14.4.2(f),
shall be a life income benefit equal to $10.00 multiplied by the number of his
years of Credited Service (the “Normal Retirement Pension”).

 

Subject to Section 14.4.2(f), the monthly Normal
Retirement Pension payable from the Trust shall become payable to the ERI
Hourly Participant, if he then shall be living, on the first day of the first
month after (i) his employment shall have terminated, and (ii) he
shall have filed an application for such Pension; and shall be payable on the
first day of each month thereafter during his lifetime.

 

67

 

Upon attainment of his Normal Retirement Date, the
rights of an ERI Hourly Participant to his benefits under this Section shall
be nonforfeitable.

 

(b)           Early Retirement Pension.

 

(i)                                     The amount of the monthly Pension payable
out of the Trust to an Employee who shall retire at his option under the
conditions of Section 14.4.2(b)(ii) of the Plan, and who shall make
application therefor, shall be one of the following as the ERI Hourly
Participant shall elect:

 

(A)                              A deferred life income benefit, at age 65
determined in accordance with Section 14.4.3(a), based upon his Credited
Service, or

 

(B)                                An immediate life income benefit
commencing at Early Retirement in an amount equal to the deferred benefit provided
for in (A) above, reduced by a percentage equal to 5/9 of 1%
multiplied by the number of months from the date the ERI Hourly Participant’s
Pension originally commenced to attainment of age 65.

 

(ii)                                  The amount of the monthly Pension payable
out of the Trust to an ERI Hourly Participant who shall retire under the
conditions of Section 14.4.2(b)(iii) of the Plan shall be:

 

(A)                              A life income benefit in an amount equal
to $10.00 for each year of his Credited Service, and

 

(B)                                A Temporary Benefit in an amount equal to
$10.00 for each year of his Credited Service (not to exceed a total of
$250.00); provided, however, that for any month after the retired ERI Hourly
Participant attains age 65 or becomes Eligible For an Unreduced Social Security
Benefit, whichever occurs first, the Temporary Benefit shall not be payable.

 

For the purpose of subsection (i) above, a
retired ERI Hourly Participant shall be considered as being Eligible For an
Unreduced Social Security Benefit even though he does not qualify for, or
loses, such payments through failure to make application therefor, entering
into covered employment, or other act or failure to act.  An ERI Hourly Participant discharged for
cause after such ERI Hourly Participant has attained age 60 but before age 65, and
who has met the requirements set forth in Section 14.4.2(c)(i) shall
be entitled only to the benefits provided under Section 14.4.3(b)(i) of
the Plan.

 

68

 

(iii)                               The monthly Early Retirement Pension
shall become payable to the retired ERI Hourly Participant, if he then shall be
living, on the first day of the first month after (A) he shall have
become eligible for such Pension and (B) he shall have filed application
for such Pension; and shall be payable on the first day of each month
thereafter during his lifetime or until he shall be reemployed prior to his
Normal Retirement Date by the Company (as defined in Section 14.4.3(e)).

 

(c)           Disability Retirement Pension. 
The monthly Pension payable out of the Trust to an ERI Hourly
Participant who shall retire and be eligible for a Pension under the provisions
of Section 14.4.2(b)(iv) of the Plan shall be:

 

(i)                                     A life income benefit in an amount equal
to $10.00 for each year of his Credited Service, and

 

(ii)                                  A Temporary Benefit in an amount equal to
$10.00 for each year of his Credited Service (not to exceed a total of
$250.00); provided, however, that for any month after the retired ERI Hourly
Participant attains age 65 or becomes Eligible For an Unreduced Social Security
Benefit, whichever occurs first, the Temporary Benefit shall not be payable.

 

For the purposes of this Section, a retired ERI Hourly
Participant shall be considered as being Eligible For an Unreduced Social
Security Benefit by reason of disability even though he does not qualify for,
or loses, such payments through failure to make application therefor or other
act or failure to act.

 

The monthly Disability Retirement Pension payable from
the Trust shall become payable to the retired ERI Hourly Participant, if he
then shall be living, on the first day of the first month after (A) he
shall have filed an application for such Pension, and (B) his
Disability Retirement shall have commenced, and (C) at least 26
weeks have elapsed since the date upon which his Disability commenced, and
shall be payable on the first day of each month thereafter until, but not
including, the month after (1) his Disability Retirement shall end,
or (2) he shall attain age 65, or (3) he shall die,
whichever first shall occur.

 

When a retired ERI Hourly Participant receiving a
Disability Retirement Pension shall reach age 65 or the qualifying age for an
unreduced insurance benefit by reason of age under the Federal Social Security
Act, he thereafter, if eligible, shall receive a Normal Retirement Pension in
accordance with the provisions of Section 14.4.3(a) and shall no
longer be considered to be on Disability Retirement.

 

(d)           Deferred Vested Pension.  The monthly
Pension payable out of the Trust to an ERI Hourly Participant who shall
terminate employment and be eligible for a Deferred Vested Pension under the
provisions of Section 14.4.2(c) of the Plan shall be a life income
benefit equal to $10.00 multiplied by the number of his years of Credited
Service.

 

69

 

The monthly Pension shall become payable to such ERI
Hourly Participant, if he shall then be living, on the first day of the month
after (i) his 65th birthday and (ii) he shall have filed an
application for such Pension; and shall be payable on the first day of each
month thereafter during his lifetime, provided, however, that such ERI Hourly
Participant may elect a monthly Pension commencing on the first day of any
month after he shall have reached his 60th birthday and before he shall have
reached his 65th birthday, in which event his monthly Pension shall (A) be
in an amount equal to the Pension payable at age 65 reduced by a percentage
equal to 5/9 of 1% multiplied by the number of months from the date his Pension
is to commence to the first day of the month following his 65th birthday and (B) be
payable on the first day of each month thereafter during his lifetime or until
he shall be reemployed prior to his Normal Retirement Date by the Company (as
defined in Section 14.4.3(e)).

 

(e)           Reemployment.  If an ERI
Hourly Participant receiving an Early Retirement Pension shall be reemployed
prior to his Normal Retirement Date by the Company (which term, for purposes of
this Section 14.4.3(e), shall mean the Company as defined in Section 1.14
and all entities required to be treated as under common control with such
Company pursuant to section 414(b)(c)(m) or (o) of the Code) for
40 or more hours in any calendar month, and has been given the notice required
by 29 Code of Federal Regulations Section 2530.203-3(b)(4), his Pension
shall be cancelled.  Upon his subsequent
retirement, or if sooner, attainment of age 65, his Pension shall be based on
the total of his Credited Service; provided, however, that if an ERI Hourly
Participant eligible for a Normal Retirement Pension or a Pension in accordance
with Section 14.4.2(f) shall previously have been retired on an Early
Retirement Pension under the conditions of Section 14.4.2(b)(ii) and
then returned to employment, his monthly Normal Retirement Pension or Pension
payable in accordance with Section 14.4.2(f), if applicable, payable from
the Trust shall be reduced by 8/10 of 1% of the sum of the Early Retirement
Benefit payments he shall have received but not to exceed 25% of the monthly
Pension payable prior to such reduction.

 

If the Disability Retirement Pension of a retired ERI
Hourly Participant shall cease without loss of seniority, and provided he shall
not have subsequently incurred a break in his seniority, he shall be credited
upon subsequent Retirement, or if sooner, attainment of age 65, with the
Credited Service and Eligibility Service he had at the time his Disability
Retirement commenced and shall also receive credit for Eligibility Service
accumulated during the period of reemployment.

 

An ERI Hourly Participant who previously terminated
employment and was eligible for a Deferred Vested Pension, and who again
becomes an ERI Hourly Participant, prior to his application for such Pension,
shall receive credit for Credited Service and Eligibility Service accumulated
at the time of such termination and shall also receive credit for Eligibility
Service accumulated during the period of reemployment.  Upon subsequent retirement, or if sooner,
attainment of age 65, such ERI Hourly Participant’s eligibility for retirement
and the amount of monthly Pension shall be determined on the basis of his total
Credited Service.

 

70

 

(f)            Survivorship Option.

 

(i)                                     In lieu of the applicable Life Income
Benefit provided in subsections (a) through (d) of this Section 14.4.3
(but not any Temporary Benefit ceasing at or before age 65), an ERI Hourly
Participant who retires or has attained his Normal Retirement Date, or an ERI
Hourly Participant whose employment was terminated and is entitled to a
Deferred Vested Pension, shall automatically be deemed to have elected a
reduced monthly benefit during his lifetime with the provision that, following
his death, a monthly survivor’s benefit shall be payable to his designated
spouse during the further lifetime of the spouse.

 

(ii)                                  The automatic election shall be deemed to
be made on the following date, whichever is applicable:  (A) for a person retiring on
Normal Retirement Pension, Early Retirement Pension, or Disability Retirement
Pension, the date on which his employment with the Company terminates; or (B) for
an ERI Hourly Participant who has attained his Normal Retirement Date, his
Normal Retirement Date or January 1, 1984, whichever is later; or (C) for
an ERI Hourly Participant who is entitled to a Deferred Vested Pension, the
first day of the first month after he reaches age 65 or if earlier, the first
day of the first month he receives a Deferred Vested Pension.  The automatic election provided in this
subsection shall be applicable only with respect to a spouse to whom the ERI
Hourly Participant is married at the date of election and has been married for
at least one year prior to that date; provided, however, that an ERI Hourly
Participant married at the date of election, but for less than one year, shall
be deemed to have elected the survivorship option to become effective on the
first day of the month following the month in which the ERI Hourly Participant
has been married one year, or if later, the first day of the month for which
his first benefit under the Plan is payable.

 

An ERI Hourly Participant may prevent the automatic
election provided in this subsection by specific written rejection accompanied
by written spousal consent which has been witnessed by a notary public and
executed in whatever form and manner may be prescribed for this purpose and
before the time such election would be deemed to be made, in which event he
shall be entitled to the applicable life income benefit provided in Section 14.4.3(a),
(b), (c) or (d) without the reduction provided in subsection 14.4.3(f) (iii) below;
provided, however, that said rejection may be cancelled by the ERI Hourly
Participant by written action at any time prior to the date his benefits are to
commence.  The notice and waiver
provisions of Section 3.7(d) and (e) shall apply to such
rejections.

 

(iii)                               The amount of the reduced monthly benefit
payable to a retired ERI Hourly Participant (including for purposes of this Section an
ERI Hourly Participant entitled to a Deferred Vested Pension and an ERI Hourly
Participant entitled to a Pension pursuant to Section 14.4.2(f)) under
this Section 14.4.3(f), shall be determined by reducing the amount of the
applicable life income benefit by a percentage, determined as hereinafter
provided, of the life income benefit that would have been payable to the
retired ERI Hourly Participant if he had rejected a survivorship option.  The percentage to be used shall be ten
percent (10%) if the ERI Hourly Participant’s age and his spouse’s age are the
same (the age of each determined as being the age at his or her birthday
nearest the date on which the first payment of such ERI Hourly Participant’s
benefit shall be payable).  Such percentage
shall be decreased by 1/2 of 1% for each year up to twenty (20) years that the
spouse’s age exceeds the ERI Hourly Participant’s age and shall be increased by
1/2 of 1% for each year that the spouse’s age is less than the ERI Hourly
Participant’s age.

 

71

 

The reductions provided in this subsection shall be
made in all monthly benefits payable to the retired ERI Hourly Participant.

 

(iv)                              The amount of the monthly survivor’s
benefit payable to the surviving spouse of a retired ERI Hourly Participant for
whom the survivorship option hereunder is effective shall be fifty percent
(50%) of the amount of the monthly life income benefit that was or would have
been payable to the retired Employee after the reduction provided in (iii) above.

 

(g)           Special Pre-Retirement Survivor Option.

 

(i)                                     The following Special Pre-Retirement
Option shall be deemed to have been elected automatically by an Employee who (A) has
seniority on or after January 1, 1984 and has met the vesting requirements
of Section 14.4.2(c) or (B) terminates employment and is
eligible for a Deferred Vested Pension under Section 14.4.3(d).  The Special Pre-Retirement Survivor Option
shall also be provided in respect of ERI Hourly Participants who elected such
coverage pursuant to Article V, Section 7(a) of the ERI Hourly
Plan.

 

An ERI Hourly Participant may prevent this automatic
election by a specific written rejection accompanied by written spousal consent
which has been witnessed by a notary public. 
Any rejection may be revoked at any time, or a subsequent rejection made
at any time prior to commencement of benefits. 
Anything to the contrary notwithstanding, no rejection may be made until
the Employee has attained age 35.

 

(ii)                                  Under this Special Pre-Retirement
Survivor Option, a reduced monthly Pension will be payable to the ERI Hourly
Participant upon his subsequent retirement under the Plan, commencement of a
Deferred Vested Benefit or commencement of a Pension pursuant to Section 14.4.2(f) (and
the survivor’s benefit available pursuant to Section 14.4.3(f) shall
be determined by reference to such reduced monthly Pension), in return for
which a survivor’s benefit shall be payable to the ERI Hourly Participant’s
spouse but only in the event of his death prior to his retirement, commencement
of Deferred Vested Benefits, or commencement of a Pension pursuant to Section 14.4.2(f) (whichever
is applicable) while the option is in effect. 
The survivor’s benefit shall not commence prior to the date the ERI
Hourly Participant would have attained age 60. 
The amount of the spouse’s survivor’s benefit shall be equal to 50% of
the life income benefit, if any, to which the ERI Hourly Participant would have
been entitled if he had retired under Section 14.4.3(a), (b)(i)(B) or
(d) on the day preceding his death but not prior to age 60 with the
survivorship option set forth in Section 14.4.3(f) in effect.

 

72

 

(iii)                               The reduction in the monthly Pension
payable to an ERI Hourly Participant will be determined by multiplying the
appropriate factor from the table below by the number of months the coverage
has been in effect:

 

	
  Age of

  Employee

  	
   

  	
  Reduction for Each Complete
  Month of

  Coverage While in Active Service or

  with Seniority Status

  	
   

  	
  Reduction for Each Complete
  Month of

  Coverage While Not in Active Service Nor

  with Seniority Status

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Under 65

  	
   

  	
  .0002083 (.02083%)

  	
   

  	
  .00025 (.025%)

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Over 65

  	
   

  	
  None

  	
   

  	
  None

  	
   

  

 

(h)           Special Lump Sum Payment. 
An ERI Hourly Participant or a surviving spouse who is entitled to a
monthly benefit under this Section 14.4.3 shall be paid the actuarial
equivalent of said benefit as a single lump sum in lieu of such monthly
benefit, provided the lump sum is less than $5,000.  In the case of an ERI Hourly Participant, the
benefit described herein shall be the monthly pension payable at the later of
age 65 or pension commencement age.  For
purposes of this section, the actuarial equivalent shall be calculated using
the Applicable Interest Rate under Section 417(e) of the Code for the
second full calendar month before the date of distribution, and the Applicable
Mortality Table under Section 417(e) of the Code.  Notwithstanding the preceding sentence, the
present value of the accrued lump sum retirement benefit due an Employee who is
entitled to a monthly benefit under this Section 14.4.3 shall not be less
than the present value of such Participant’s vested accrued benefit as of December 31,
1999 utilizing an interest rate that is not greater than the immediate or
deferred rate, in effect on January 1 of the year in which the Annuity
Starting Date occurs, used by the Pension Benefit Guaranty Corporation to
determine the present value of a lump sum distribution upon plan termination)
and the UP-1984 Mortality Table.  The
surviving spouse of an ERI Hourly Participant who, pursuant to Sections 14.4.3(f) and
(g), is automatically deemed to have elected survivor benefits, shall consent
in a notarized writing to any such lump sum payment.

 

(i)            Other Benefits.  No benefits
are payable under the Plan upon the death of an ERI Hourly Participant, except
pursuant to valid election of an option pursuant to Section 14.4.3(g), or
as otherwise provided under Section 14.4.3(f).  No benefits are payable under the Plan upon
termination of employment of an ERI Hourly Participant who does not satisfy any
of the eligibility requirements set forth in Section 14.4.2.

 

73

 

SECTION 14.4.3 OF THE PLAN WAS AMENDED BY
AMENDMENT NO. 1, EFFECTIVE AS OF JANUARY 1, 1998, BY SUBSTITUTING THE NUMBER “$5,000”
FOR THE NUMBER “$3,500” WHEREVER THE LATTER APPEARS THEREIN.

 

Section 14.4.4       Loss of Credited Service and Eligibility Service.

 

An ERI Hourly Participant will lose all Credited
Service and Eligibility Service for purposes of this Plan (and if reemployed,
shall be considered a new employee for the purposes of this Plan):

 

(a)           If before becoming entitled to a Pension benefit under
the Plan, he quits, is discharged or released, of if his seniority is broken
for any other reason, and

 

(b)           If he receives compensation from the Company for less
than 500 hours (computed as set forth in Section 2 of Article IV of
the ERI Plan as in effect on December 31, 1988) in the calendar year when
such quit, discharge, release, or loss of seniority occurs or in the next
following calendar year.  Any such
occurrence is hereinafter referred to as a “Break in Service.”  If an ERI Hourly Participant referred to in
subparagraph (a) above is reemployed prior to incurring a “Break in
Service,” no loss of Credited Service or Eligibility Service will be deemed to
have occurred.

 

Notwithstanding the
foregoing, however:

 

(c)           An ERI Hourly Participant retired under the Plan who
again becomes entitled to accrue Eligibility Service will have his Credited
Service and Eligibility Service at the time of original retirement reinstated;
and

 

(d)           If an ERI Hourly Participant has a Break in Service
and is subsequently reemployed by the Company and earns not less than one year
of Eligibility Service, the Eligibility Service and Credited Service he had
when the Break in Service occurred shall be restored to him.

 

Section 14.4.5       Social Security Benefit.

 

In determining benefits under the Plan, the Social
Security Benefit shall be assumed to be the amount applicable to any month for
which a benefit is payable under this Plan to an ERI Hourly Participant under
the Old Age and Disability Insurance provisions of the Federal Social Security
Act, as from time to time amended, for the benefit of the ERI Hourly
Participant, excluding payments for wives and dependents.

 

An ERI Hourly Participant shall be deemed to be
eligible for a Social Security Benefit even though the ERI Hourly Participant
either does not apply for, or loses part or all of such payments through delay
in applying for them, by entering into covered employment or otherwise.

 

74

 

Section 14.4.6       Integrated Benefits.

 

(a)           Notwithstanding any other provisions of the Plan, in
determining the portion of the benefit payable out of the Trust Fund to any ERI
Hourly Participant, a deduction shall be made unless waived by the Company
(which term for purposes of this Section 14.4.6 shall mean the Company as
defined in Section 1.14 and any entity required to be treated as under
common control with such Company pursuant to sections 414(b), (c), (m) or (o) of
the Code), equivalent to all or any part of any of the following benefits
payable to such ERI Hourly Participant by reason of any law of the United
States, or any political subdivision thereof, which has been or shall be
enacted, provided that such deductions shall be to the extent that such
benefits have been provided by premiums, taxes, or other payments paid by or at
the expense of the Company:

 

(i)                                     Workers’ Compensation (except fixed
statutory payments for the loss of any bodily member).

 

(ii)                                  Disability benefits (other than those
payable on the basis of “need,” because of military service, or under the
Federal Social Security Act).

 

(b)           Notwithstanding any other provisions of the Plan, in
determining the retirement benefit payable out of the Trust Fund to any ERI
Hourly Participant, no benefit shall be payable for any month for which the
retired ERI Hourly Participant is receiving weekly accident or sickness
benefits under any plan to which the Company shall have contributed; for any
month for which the retired ERI Hourly Participant is receiving such accident
or sickness benefits for part of the month, a proportionate amount of the
monthly retirement benefit otherwise payable shall be paid for that part of the
month for which the retired ERI Hourly Participant receives no such accident or
sickness benefits.

 

(c)           Any lump sum payment of integrated Benefits payable to
an ERI Hourly Participant shall be pro-rated on a monthly basis from the date
of payment thereof and no Pension shall be payable until said sum as thus
pro-rated is exhausted.

 

Section 14.4.7        Disability.

 

(a)           An ERI Hourly Participant shall be deemed to be
totally and permanently disabled when, on the basis of satisfactory medical
evidence, he is found to be totally and presumably permanently prevented from
engaging in gainful occupation or employment for wage or profit as a result of
a physical or mental condition either occupational or nonoccupational in cause.

 

(b)           Any disabled retired ERI Hourly Participant may be
required to submit to medical examination, at any time during retirement prior
to age 65, but not more often than semi-annually, to determine whether he is
eligible for continuance of the Disability Retirement Pension.  If on the basis of such examination, it is
found that he is no longer disabled, or if he engages in gainful employment,
except for purposes of rehabilitation as determined by the Board, his
Disability Retirement Pension will cease. 
In the event the disabled retired ERI Hourly Participant refuses to
submit to medical examination, his Pension will be discontinued until he
submits to examination.

 

75

 

ARTICLE XV

 

SPECIAL VESTING
RULES IN CONNECTION

WITH CORPORATE OFFICE SHUTDOWN

AND COMPANY STREAMLINING

 

Notwithstanding any other provision of this Plan, (a) each
Participant who was actively employed at the Henley Properties corporate office
in La Jolla, California as of March 30, 1990 and whose employment is
terminated by Henley Properties in connection with the shutdown of that office,
and (b) each Participant whose employment with Signal Landmark is
terminated in connection with the streamlining of that company’s operations,
shall be fully vested in his Accrued Benefit.

 

IN WITNESS WHEREOF, the Plan is executed this 21st day of December,
2009.

 

 

	
   

  	
  CALIFORNIA
  COASTAL COMMUNITIES, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ S.G. Sciutto

  

 

76

 

APPENDIX
I

 

LIMITATIONS
ON BENEFITS

 

This Appendix applies to a Participant’s Accrued
Benefit derived from Employer contributions in Limitation Years (as defined
below) beginning on or after January 1, 2008, except as otherwise
provided.  The application of the
provisions of this Appendix will not cause the Maximum Permissible Benefit (as
defined below) for any Participant to be less than the Participant’s accrued
benefit under all the defined benefit plans of the Employer or a Previous
Employer as of the end of the last Limitation Year beginning before January 1,
2008, under provisions of the plans that were both adopted and in effect before
April 5, 2007. Effective December 31, 1993, benefit accruals under
this Plan were frozen.  Consequently,
this Appendix is to apply prospectively, only, to benefits (if any) accrued
under the Plan after the date (if ever) that benefit accruals under the Plan
cease to be frozen.  No benefits under
this frozen Plan will be increased as a result of the EGTRRA increase in the
limitations of Code Section 415(b). 
Similarly, the annual Remuneration of each participant shall not be
increased due to EGTRRA, and no cost of living increases shall be in effect
that would result in such an increase.

 

1.01         General Rule. 
The Annual Benefit otherwise payable to a Participant under the Plan at
any time will not exceed the Maximum Permissible Benefit.  If the benefit the Participant would
otherwise accrue in a Limitation Year would produce an Annual Benefit in excess
of the Maximum Permissible Benefit, the benefit will be limited (or the rate of
accrual reduced) to a benefit that does not exceed the Maximum Permissible
Benefit.  If the Participant is, or has
ever been, a participant in another qualified defined benefit plan (without
regard to whether the plan has been terminated) maintained by the Employer or a
Previous Employer, the sum of the Participant’s Annual Benefits from all such
plans may not exceed the Maximum Permissible Benefit.

 

1.02         Annual Benefit means a benefit payable annually in the
form of a straight life annuity.  Except
as provided below, where a benefit is payable in a form other than a straight
life annuity, the benefit will be adjusted to an actuarially equivalent
straight life annuity that begins at the same time as such other form of
benefit and is payable on the first day of each month, before applying the
limitations of this Appendix.  For a
Participant who has or will have distributions commencing at more than one
Annuity Starting Date, the Annual Benefit will be determined as of each such
Annuity Starting Date (and will satisfy the limitations of this Appendix as of
each such date), actuarially adjusting for past and future distributions of
benefits commencing at the other Annuity Starting Dates.  For this purpose, the determination of
whether a new Annuity Starting Date has occurred will be made without regard to
Regulation 1.401(a)-20, Q&A 10(d), and with regard to Regulations
1.415(b)-1(b)(1)(iii)(B) and (C).

 

(a)           Actuarial Adjustment.  No actuarial
adjustment to the benefit will be made for (i) survivor benefits payable
to a surviving Spouse under a qualified joint and survivor annuity to the
extent such benefits would not be payable if the Participant’s benefit were
paid in another form; (ii) benefits that are not directly related to
retirement benefits (such as a qualified disability benefit, preretirement
incidental death benefits, and post-retirement medical benefits); or (iii) the
inclusion in the form of benefit of an automatic benefit increase feature; provided
the form of benefit is not subject to Code Section 417(e)(3) and
would otherwise satisfy the limitations of this Appendix, and the amount
payable under the form of benefit in any Limitation Year will not exceed the
limits of this Appendix applicable at the Annuity Starting Date, as increased
in subsequent years pursuant to Code Section 415(d).  For this purpose, an automatic benefit
increase feature is included in a form of benefit if the form of benefit
provides for automatic, periodic increases to the benefits paid in that form.

 

I-1

 

(b)           Determination.  The
determination of the Annual Benefit will take into account social security
supplements described in Code Section 411(a)(9) and benefits transferred
from another defined benefit plan, other than transfers of distributable
benefits pursuant to Regulation 1.411(d)-4, Q&A-3(c), but will disregard
benefits attributable to Employee Contributions or rollover contributions.

 

(c)           Actuarial Equivalence.  The
determination of actuarial equivalence of forms of benefit other than a
straight life annuity will be made in accordance with paragraph (1) or
paragraph (2), below:

 

(1)           Benefit Forms Not Subject to Code Section 417(e)(3). 
For Limitation Years beginning on or after January 1, 2008, the
actuarially equivalent straight life annuity is equal to the greater of (1) the
annual amount of the straight life annuity (if any) payable to the Participant
under the Plan commencing at the same Annuity Starting Date as the Participant’s
form of benefit; and (2) the annual amount of the straight life annuity
commencing at the same Annuity Starting Date that has the same actuarial
present value as the Participant’s form of benefit, computed using a 5 percent
interest rate assumption and the Applicable Mortality Table for that Annuity
Starting Date.

 

(2)           Benefit Forms Subject to Code Section 417(e)(3). 
If the Annuity Starting Date of the Participant’s form of benefit is in
a Plan Year beginning after 2005, the actuarially equivalent straight life
annuity is equal to the greatest of (I) the annual amount of the straight
life annuity commencing at the same Annuity Starting Date that has the same
actuarial present value as the Participant’s form of benefit, computed using an
8% interest rate and the 1983 Unisex Group Annuity Mortality Table set back one
year; (II) the annual amount of the straight life annuity commencing at
the same Annuity Starting Date that has the same actuarial present value as the
Participant’s form of benefit, computed using a 5.5 percent interest rate
assumption and the Applicable Mortality Table; and (III) the annual amount
of the straight life annuity commencing at the same Annuity Starting Date that
has the same actuarial present value as the Participant’s form of benefit,
computed using the Applicable Interest Rate and the Applicable Mortality Table,
divided by 1.05.

 

1.03         Remuneration for a Limitation Year, for purposes of this Appendix, is the
compensation (within the meaning of Code Section 415(c)(3)) actually paid
or made available during such Limitation Year. 
Remuneration for a Limitation Year will include amounts earned but not
paid during the Limitation Year solely because of the timing of pay periods and
pay dates, provided the amounts are paid during the first few weeks of the next
Limitation Year.  For Limitation Years
beginning on or after January 1, 2008, Remuneration for a Limitation Year
also will include compensation paid by the later of 2 1/2 months after an employee’s termination of employment
or the end of the Limitation Year that includes the date of the employee’s
termination of employment, if:

 

I-2

 

(a)           Regular.  The payment
is regular compensation and, absent termination of employment, the payments
would have been paid to the employee while the employee continued in employment
with the Employer; or,

 

(b)           Leave.  The payment
is for unused accrued bona fide sick, vacation or other leave that the employee
would have been able to use if employment had continued; or

 

(c)           Nonqualified Plan.  The payment
is received by the employee pursuant to a nonqualified unfunded deferred
compensation plan and would have been paid at the same time if employment had
continued, but only to the extent includible in gross income.

 

(d)           Exclusions.  Any payments
not described above will not be considered Remuneration if paid after
termination of employment, even if paid by the later of 2 1/2 months after the date of termination of
employment or the end of the Limitation Year that includes the date of
termination of employment, except, (a) if an individual who does not
currently perform services for the Employer by reason of qualified military
service (within the meaning of Code Section 414(u)(1)) to the extent these
payments do not exceed the amounts the individual would have received if the
individual had continued to perform services for the Employer rather than
entering qualified military service; or (b) if compensation paid to a
Participant who is permanently and totally disabled, as defined in Code Section 22(e)(3),
provided salary continuation applies to all Participants who are permanently
and totally disabled for a fixed or determinable period, or the Participant was
not a Highly Compensated Employee immediately before becoming disabled.

 

(e)           Back Pay.  Back pay,
within the meaning of Regulation 1.415(c)-2(g)(8), will be treated as
Remuneration for the Limitation Year to which the back pay relates to the
extent the back pay represents compensation that would otherwise be included
under this definition.

 

(f)            Deferrals.  For
Limitation Years beginning after December 31, 1997, Remuneration paid or
made available during such Limitation Year includes amounts that would
otherwise be included in Remuneration but for an election under Code Sections
125(a), 402(e)(3), 402(h)(1)(B), 402(k), or 457(b).

 

(g)           Transportation Fringe.  For
Limitation Years beginning after December 31, 2000, Remuneration also
includes elective amounts that are not includible in the gross income of the
employee by reason of Code Section 132(f)(4).

 

(h)           Deemed Remuneration.  For
Limitation Years beginning after December 31, 2001, Remuneration includes
deemed Code Section 125 compensation. 
Deemed Code Section 125 compensation is an amount that is
excludable under Code Section 106 that is not available to a Participant
in cash in lieu of group health coverage under a Code Section 125
arrangement solely because the Participant is unable to certify that he or she
has other health coverage.  Amounts are
deemed Code Section 125 compensation only if the Employer does not request
or otherwise collect information regarding the Participant’s other health
coverage as part of the enrollment process for the health plan.

 

I-3

 

1.04         Defined Benefit Remuneration Limitation means 100 percent of a Participant’s
High Three-Year Average Remuneration, payable in the form of a straight life
annuity.

 

(a)           Automatic Adjustment.  In the case
of a Participant who has had a termination of employment, the Defined Benefit
Remuneration Limitation applicable to the Participant in any Limitation Year
beginning after the date of termination of employment will not be automatically
adjusted.

 

(b)           Rehire.  In the case
of a Participant who is rehired after a termination of employment, the Defined
Benefit Remuneration Limitation is the greater of 100 percent of the
Participant’s High Three-Year Average Remuneration, as determined prior to the
termination of employment, or 100 percent of the Participant’s High Three-Year
Average Remuneration, as determined after the termination of employment.

 

1.05         Defined Benefit Dollar Limitation. 
Effective for Limitation Years ending after December 31, 2001, the
Defined Benefit Dollar Limitation is $160,000, automatically adjusted under
Code Section 415(d), effective January 1 of each year and available
in the form of a straight life annuity. 
In the case of a Participant who has had a termination of employment,
the Defined Benefit Dollar Limitation applicable to the Participant in any
Limitation Year beginning after the date of termination of employment will not
be automatically adjusted pursuant to Code Section 415(d).

 

1.06         Employer means, for purposes of this Appendix, the Company and
its Affiliated Companies determined with the adjustment required by Code Section 415(h).

 

1.07         High Three-Year Average Remuneration means the average Remuneration for the
three consecutive years of service (or, if the Participant has less than three
consecutive years of service, the Participant’s longest consecutive period of
service, including fractions of years, but not less than one year) with the
Employer that produces the highest average. 
A year of service with the Employer is the 12-consecutive month period
defined below, in this Appendix.  In the
case of a Participant who is rehired by the Employer after a termination of
employment, the Participant’s High Three-Year Average Remuneration will be
calculated by excluding all years for which the Participant performs no
services for and receives no Remuneration from the Employer (the break period)
and by treating the years immediately preceding and following the break period
as consecutive.  To the extent required
by applicable law, a Participant’s Remuneration for a year of service will not
include Remuneration in excess of the limitation under Code Section 401(a)(17)
that is in effect for the calendar year in which such year of service begins.

 

1.08         Limitation Year means the calendar year.

 

1.09         Maximum Permissible Benefit means the lesser of the Defined Benefit
Dollar Limitation or the Defined Benefit Remuneration Limitation (both adjusted
where required, as provided below).

 

I-4

 

(a)           Adjustment for Less Than 10 Years of Participation or
Service.  If the Participant has less than 10 years of
participation in the Plan, the Defined Benefit Dollar Limitation will be
multiplied by a fraction — (i) the numerator of which is the number of
years (or part thereof, but not less than one year) of participation in the
Plan, and (ii) the denominator of which is 10.  In the case of a Participant who has less
than ten Years of Service with the Employer, the Defined Benefit Remuneration
Limitation will be multiplied by a fraction — (i) the numerator of which
is the number of Years (or part thereof, but not less than one year) of Service
with the Employer, and (ii) the denominator of which is 10.  The Defined Benefit Dollar Limitation will be
adjusted if the Annuity Starting Date of the Participant’s benefit is before
age 62 or after age 65.

 

(b)           Adjustment of Defined Benefit Dollar Limitation for
Benefit Commencement Before Age 62.

 

(1)           Plan Does Not Have Immediately Commencing Straight
Life Annuity Payable at Both Age 62 and the Age of Benefit Commencement. 
If the Annuity Starting Date for the Participant’s benefit is prior to
age 62 and occurs in a Limitation Year beginning on or after January 1,
2008, and the Plan does not have an immediately commencing straight life
annuity payable at both age 62 and the age of benefit commencement, the Defined
Benefit Dollar Limitation for the Participant’s Annuity Starting Date is the
annual amount of a benefit payable in the form of a straight life annuity
commencing at the Participant’s Annuity Starting Date that is the actuarial
equivalent of the Defined Benefit Dollar Limitation (adjusted for years of
participation less than 10, if required) with actuarial equivalence computed
using a 5 percent interest rate assumption and the Applicable Mortality Table
for the Annuity Starting Date (and expressing the Participant’s age based on
completed calendar months as of the Annuity Starting Date).

 

(2)           Plan Has Immediately Commencing Straight Life Annuity
Payable at Both Age 62 and the Age of Benefit Commencement. 
If the Annuity Starting Date for the Participant’s benefit is prior to
age 62 and occurs in a Limitation Year beginning on or after January 1,
2008, and the Plan has an immediately commencing straight life annuity payable
at both age 62 and the age of benefit commencement, the Defined Benefit Dollar
Limitation for the Participant’s Annuity Starting Date is the lesser of the
limitation determined under paragraph (1), immediately above, and the Defined
Benefit Dollar Limitation (adjusted for years of participation less than 10, if
required) multiplied by the ratio of the annual amount of the immediately
commencing straight life annuity under the Plan at the Participant’s Annuity
Starting Date to the annual amount of the immediately commencing straight life
annuity under the Plan at age 62, both determined without applying the
limitations of this Appendix.

 

(c)           Adjustment of Defined Benefit Dollar Limitation for
Benefit Commencement After Age 65.

 

(1)           Plan Does Not Have Immediately Commencing Straight
Life Annuity Payable at Both Age 65 and the Age of Benefit Commencement. 
If the Annuity Starting Date for the Participant’s benefit is after age
65 and occurs in a Limitation Year beginning on or after January 1, 2008,
and the Plan does not have an immediately commencing straight life annuity
payable at both age 65 and the age of benefit commencement, the Defined Benefit
Dollar Limitation at the Participant’s Annuity Starting Date is the annual
amount of a benefit payable in the form of a straight life annuity commencing
at the Participant’s Annuity Starting Date that is the actuarial equivalent of
the Defined Benefit Dollar Limitation (adjusted for years of participation less
than 10, if required), with actuarial equivalence computed using a 5 percent
interest rate assumption and the Applicable Mortality Table for that Annuity
Starting Date (and expressing the Participant’s age based on completed calendar
months as of the Annuity Starting Date).

 

I-5

 

(2)           Plan Has Immediately Commencing Straight Life Annuity
Payable at Both Age 65 and the Age of Benefit Commencement. 
If the Annuity Starting Date for the Participant’s benefit is after age
65 and occurs in a Limitation Year beginning on or after January 1, 2008,
and the Plan has an immediately commencing straight life annuity payable at
both age 65 and the age of benefit commencement, the Defined Benefit Dollar
Limitation at the Participant’s Annuity Starting Date is the lesser of the
limitation determined in paragraph (1), immediately above, and the Defined
Benefit Dollar Limitation (adjusted for years of participation less than 10, if
required) multiplied by the ratio of the annual amount of the adjusted
immediately commencing straight life annuity under the Plan at the Participant’s
Annuity Starting Date to the annual amount of the adjusted immediately
commencing straight life annuity under the Plan at age 65, both determined
without applying the limitations of this Appendix.  For this purpose, the adjusted immediately
commencing straight life annuity under the Plan at the Participant’s Annuity
Starting Date is the annual amount of such annuity payable to the Participant,
computed disregarding the Participant’s accruals after age 65 but including
actuarial adjustments even if those actuarial adjustments are used to offset
accruals; and the adjusted immediately commencing straight life annuity under
the Plan at age 65 is the annual amount of such annuity that would be payable
under the Plan to a hypothetical Participant who is age 65 and has the same
accrued benefit as the Participant.

 

(d)           No Adjustment. 
Notwithstanding (b) or (c) immediately above, no adjustment
will be made to the Defined Benefit Dollar Limitation to reflect the
probability of a Participant’s death between the Annuity Starting Date and age
62, or between age 65 and the Annuity Starting Date, as applicable, if benefits
are not forfeited upon the death of the Participant prior to the Annuity
Starting Date.  To the extent benefits
are forfeited upon death before the Annuity Starting Date, such an adjustment
will be made.  For this purpose, no forfeiture
will be treated as occurring upon the Participant’s death if the Plan does not
charge Participants for providing a qualified preretirement survivor annuity,
as defined in Code Section 417(c) upon the Participant’s death.

 

(e)           Minimum Benefit Permitted. 
Notwithstanding anything in this Appendix to the contrary, the benefit
otherwise accrued or payable to a Participant under this Plan will be deemed
not to exceed the Maximum Permissible Benefit if:

 

(1)           $10,000.  The
retirement benefits payable for a Limitation Year under any form of benefit
with respect to such Participant under this Plan and under all other defined
benefit plans (without regard to whether a plan has been terminated) ever
maintained by the Employer do not exceed $10,000 multiplied by a fraction — (I) the
numerator of which is the Participant’s number of Years (or part thereof, but
not less than one year) of Service (not to exceed 10) with the Employer, and (II) the
denominator of which is 10; and

 

(2)           No Defined Contribution Plan.  The
Employer (or a Previous Employer) has not at any time maintained a defined
contribution plan in which the Participant participated (for this purpose,
mandatory Employee Contributions under a defined benefit plan, individual
medical accounts under § Code Section 401(h), and accounts for
postretirement medical benefits established under § 419A(d)(1) are not
considered a separate defined contribution plan).

 

I-6

 

1.10         Previous Employer. 
For purposes of this Appendix, if the Employer maintains a plan that
provides a benefit the Participant accrued while performing services for a
former Employer, the former Employer is a Previous Employer with respect to the
Participant in the plan.  A former entity
that antedates the Employer is also a Previous Employer with respect to a
Participant if, under the facts and circumstances, the Employer constitutes a
continuation of all or a portion of the trade or business of the former entity.

 

1.11         Year of Participation. 
The Participant will be credited with a Year of Participation (computed
to fractional parts of a year) for each accrual computation period for which
the following conditions are met:  (1) the
Participant is credited with at least the number of hours of service (or period
of service) for benefit accrual purposes, required under the terms of the plan
in order to accrue a benefit for the accrual computation period, and (2) the
Participant is included as a Participant under the eligibility provisions of
the plan for at least one day of the accrual computation period.  If these two conditions are met, the portion
of a year of participation credited to the Participant will equal the amount of
benefit accrual service credited to the Participant for such accrual
computation period.  A Participant who is
permanently and totally disabled within the meaning of Code Section 415(c)(3)(C)(i) for
an accrual computation period will receive a Year of Participation with respect
to that period.  In no event will more
than one Year of Participation be credited for any 12-month period.

 

1.12         Year of Service.  For
purposes of determining a Participant’s High Three-Year Average Remuneration,
the Participant will be credited with a Year of Service (computed to fractional
parts of a year) for each accrual computation period for which the Participant
is credited with at least the number of hours of service (or period of service)
for benefit accrual purposes, required under the terms of the Plan in order to
accrue a benefit for the accrual computation period, taking into account only
service with the Employer or a Previous Employer.

 

I-7

 

APPENDIX
II

 

DISTRIBUTION
PROVISIONS

 

2.01         Incorporation by Reference of 401(a)(9) Regulations. 
Distributions from the Plan will be made in accordance with Regulations
(currently including 1.401(a)(9)-1 through 1.401(a)(9)-9) under Code Section 401(a)(9),
which include the minimum distribution incidental benefit requirement of Code Section 401(a)(9)(G)The
provisions of this Appendix override any distribution options in the Plan that
are inconsistent with Code Section 401(a)(9).

 

2.02         401(a)(9) Deferral Limitations for
Participants.  Notwithstanding anything to the contrary in
this Plan, a Participant may not defer commencement of his or her benefits past
his or her Required Beginning Date.  A
Participant’s Required Beginning Date is April 1 of the calendar year
following the later of (i) the calendar year in which the Participant
attains age 70-1/2, or (ii) the calendar year in which the Participant has
a severance from employment with all Affiliated Companies; provided, however,
that the Required Beginning Date of a Participant who is a 5% owner will be
determined without regard to clause (ii).

 

2.03         Time and Manner of Distribution.

 

(a)           Payment Period.  As of the
first Distribution Calendar Year (defined below), distributions, if not made in
a single sum, will be made over one of the following periods (or a combination
thereof):  (1) the life of the
Participant, (2) the life of the Participant and a Designated Beneficiary
(defined below), (3) a period certain not extending beyond the life
expectancy of the Participant, or (4) a period certain not extending
beyond the joint and last survivor expectancy of the Participant and a
Designated Beneficiary.  If a Participant
dies after distributions begin (as described below), the remaining portion of
that Participant’s benefit will continue to be distributed at least as rapidly
as under the method of distribution in effect before the Participant’s death.

 

(b)           Death of Participant Before Distributions Begin. 
If the Participant dies before distributions begin, the Participant’s
entire interest will be distributed, or begin to be distributed, no later than
as follows:

 

(1)           Spouse is Sole Beneficiary. 
If the Participant’s surviving Spouse is the Participant’s sole
Designated Beneficiary, then, except as provided in the Plan, distributions to
the surviving Spouse will begin by December 31 of the calendar year
immediately following the calendar year in which the Participant died, or by December 31
of the calendar year in which the Participant would have attained age 70-1/2,
if later.  If the surviving Spouse is
eligible to receive a single sum cash payment, the surviving Spouse must make
this election by the earlier of the date that payments are required to begin
under the preceding sentence or December 31 of the calendar year that
contains the fifth anniversary of the Participant’s death.

 

(2)           Spouse is not Sole Beneficiary. 
If the Participant’s surviving Spouse is not the Participant’s sole
Designated Beneficiary, then, except as provided in the Plan, distributions to
the Designated Beneficiary will begin by December 31 of the calendar year
immediately following the calendar year in which the Participant died unless
the Designated Beneficiary properly elects, before the date that annuity
payments are to begin, to receive a single sum cash payment.

 

II-1

 

(3)           No Designated Beneficiary. 
If there is no Designated Beneficiary as of September 30 of the
calendar year following the calendar year of the Participant’s death, the
Participant’s entire interest (if any) will be distributed by December 31
of the calendar year containing the fifth anniversary of the Participant’s
death.

 

(4)           Death of  Spouse. 
If the Participant’s surviving Spouse is the Participant’s sole
Designated Beneficiary and the surviving Spouse dies after the Participant but
before distributions to the surviving Spouse are required to begin, this Section 2.03(b) other
than 2.03(b)(1), will apply as if the surviving Spouse were the Participant.

 

For purposes of this Section 2.03 and Section 2.05,
unless 2.03(b)(4) applies, distributions are considered to begin on the
Participant’s Required Beginning Date. 
If Section 2.03(b)(4) applies, distributions are considered to
begin on the date distributions are required to begin to the surviving Spouse
under Section 2.03(b)(1)).  If
annuity payments irrevocably commence to the Participant before the Participant’s
Required Beginning Date (or to the Participant’s surviving Spouse before the
date distributions are required to begin to the surviving Spouse under Section 2.03(b)(1)),
the date distributions are considered to begin is the date distributions
actually commence.  In any event, if a
Spouse or a non-Spouse Beneficiary elects a single sum cash payment, that cash
payment must be made before December 31 of the calendar year that contains
the fifth anniversary of the Participant’s death.

 

2.04         Requirements For Joint Life Annuities
Where the Beneficiary Is Not the Participant’s Spouse. 
If the Participant’s interest is being distributed in the form of a
Joint and Survivor Annuity for the joint lives of the Participant and a
non-Spouse Beneficiary, annuity payments to be made on or after the Participant’s
Required Beginning Date to the Designated Beneficiary after the Participant’s
death must not at any time exceed the applicable percentage of the annuity
payment for such period that would have been payable to the Participant using
the table set forth in Regulation 1.401(a)(9)-6, Q&A 2(c)(2), in the manner
described in Q&A 2(c)(1), to determine the applicable percentage.

 

2.05         Definitions.

 

(a)           Designated Beneficiary.  The
individual who is designated as the Beneficiary and is the Designated
Beneficiary under Code Section 401(a)(9) and applicable Regulations.

 

(b)           Distribution Calendar Year. 
A calendar year for which a minimum distribution is required.  For distributions beginning before the
Participant’s death, the first Distribution Calendar Year is the calendar year
immediately preceding the calendar year that contains the Participant’s
Required Beginning Date.  For
distributions beginning after the Participant’s death, the first Distribution
Calendar Year is the calendar year in which distributions are required to begin
pursuant to Section 2.03(b).

 

II-2

 

(c)           Life Expectancy.  Life
expectancy means life expectancy as computed by use of the Single Life Table in
Regulation 1.401(a)(9)-9, Q&A-1.

 

(d)           Required Beginning Date.  The date
specified in Section 3.15(b) of the Plan.

 

2.06         TEFRA 242(b) Election. 
If a Participant made a written election, prior to January 1, 1984,
to defer commencement of his or her distribution in a manner consistent with
the Tax Equity and Fiscal Responsibility Act of 1982, such an election will be
honored.

 

2.07         Limitation of Benefits for 25 Highest
Paid Employees.  To the extent required by law, benefits paid
from this Plan to the 25 highest paid Employees are subject to the provisions
of Regulation 1.401(a)(4)-5(b).

 

2.08         Annuity Contracts. 
Annuity contracts purchased and distributed under the Plan shall satisfy
requirements of the Retirement Equity Act.

 

2.09         Timing.  Subject to
Regulation 1.411(a)-11(c)(7) and the provisions of this Plan, benefits to
a Participant shall become distributable no later than 60 days after the last
to occur of (a) the last day of the Plan Year in which the Participant
attains age 65, (b) the last day of the Plan Year in which the Participant
separates from employment with all Affiliated Companies, or (c) the 10th
anniversary of the last day of the Plan Year in which the Participant commenced
participation in the Plan.

 

2.10         Small Benefits. 
Since July 1, 2000, no mandatory distributions within the meaning
of Q&A 2 of IRS Notice 2005-5 have been, or will be, paid from this frozen
Plan because all remaining Plan benefits exceed $5,000.

 

II-3

 

APPENDIX
III

 

TOP HEAVY
PROVISIONS

 

If the Plan became top heavy, certain Employees would
receive vesting credit and benefits as described in this Appendix.

 

3.01         Definitions. 
For purposes of this Appendix:

 

(a)           “Determination Date” means, in the case of the
first Plan Year, the last day of that Plan Year or, in the case of any other
Plan Year, the last day of the preceding Plan Year.  When more than one plan is aggregated, the
determination of whether the plans are Top-Heavy will be made at a time
consistent with Regulations.

 

(b)           “Employer” includes the Company and its Affiliated
Companies.

 

(c)           “Key Employee” means any Employee or former
Employee who at any time during the Plan Year containing the Determination Date
was either:  (1) an officer having
annual Remuneration greater than $130,000 (as adjusted under Code §416(i)); (2) a
5% owner of the Employer; or (3) a 1% owner of the Employer having annual
Remuneration of more than $150,000.

 

For purposes of this
definition, no more than 50 Employees (or, if less than 50, either 3 Employees
or 10% of all Employees, whichever is greater) shall be treated as
officers.  For purposes of determining
the number of officers taken into account, Employees described in Code Section 414(q)(8) are
excluded.  In addition, for purposes of
determining ownership percentages, the constructive ownership rules of
Code Section 318 shall apply as provided by Code Section 416(i)(1)(B).  If 2 Employees have the same interest in the
Employer, the Employee having greater annual Remuneration from the Employer
will be treated as having a larger interest. 
For purposes of determining 5% and 1% owners, neither the aggregation rules nor
the rules of subsections (b), (c), and (m) of Code Section 414
apply.  Inherited benefits will retain
the character of the benefits of the Employee who performed services for the
Employer.

 

(d)           “Non-Key Employee” means any Employee who is
not a Key Employee.

 

(e)           “Permissive Aggregation Group” means any other
plans that the Employer in its discretion, elects to aggregate with the
Required Aggregation Group; provided that the resulting group of plans
satisfies Code Sections 401(a)(4) and 410.

 

(f)            “Required Aggregation Group” means (i) each
plan of the Employer in which a Key Employee participates (regardless of
whether the Plan has terminated), and (ii) each other plan of the Employer
which enables any plan described in clause (i) to meet the requirements of
Code Sections 401(a)(4) or 410.

 

(g)           “Top-Heavy” means a plan in which, as of the
Determination Date, the Top-Heavy Ratio exceeds 60%.

 

III-1

 

(h)           “Top-Heavy Ratio” means for the Plan or the
Required Aggregation Group or Permissive Aggregation Group, as applicable, the
fraction, the numerator of which is the sum of the account balances under the
aggregated defined contribution plans of all Key Employees as of the
Determination Date, including any part of any account balance distributed in
the 1-year period ending on the Determination Date, and the present value of
accrued benefits, including any part of any accrued benefit distributed in the
1-year period ending on the Determination Date, under the aggregated defined
benefit plans of all Key Employees as of the Determination Date, and the
denominator of which is the sum of all account balances, including any part of
any account balance distributed in the 1-year period ending on the
Determination Date, under the aggregated defined contribution plans for all
Participants and the present value of accrued benefits under the defined
benefit plans, including any part of any accrued benefit distributed in the
1-year period ending on the Determination Date, for all Participants as of the
Determination Date.  If a distribution
was made for a reason other than separation from service, death, or disability,
“5-year period” is substituted for “1-year period” in this paragraph.

 

(1)           The accrued benefit of a Participant other than a Key
Employee shall be determined under the method, if any, that uniformly applies
for accrual purposes under all defined benefit plans maintained by the
Employer, or if no such method exists, as if such benefit accrued not more
rapidly than the slowest accrual rate permitted under the fractional rule of
Code Section 411(b)(1)(C).

 

(2)           The accrued benefit for a defined contribution plan
will be determined on the most recent valuation date within a 12-month period
ending on the Determination Date.  The
accrued benefit for a defined benefit plan will be determined on the valuation
date used for computing plan costs for minimum funding.

 

(3)           No accrued benefit for any Participant or Beneficiary
will be taken into account for purposes of calculating the Top-Heavy Ratio with
respect to a Participant who is not a Key Employee with respect to the Plan
Year in question, but who was a Key Employee with respect to a prior Plan Year,
or an Employee who has performed no services for any Affiliated Company within
the 1-year period ending with the Determination Date, unless that Employee is
reemployed after such 1-year period.

 

3.02         Minimum Benefit Requirement. 
To the extent required by Code Section 416, in any Plan Year in
which the Plan is Top-Heavy, non-key employees who are covered by this Plan and
also covered by a defined contribution plan sponsored by the Employer will
receive at least a 5% minimum contribution under the defined contribution plan.

 

3.03         Minimum Vesting Requirements. 
All participants are 100% vested.

 

III-2QuickLinks
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  Exhibit 4.1    
    

 

 GLOBAL PARTNERS LP  

 GLP FINANCE CORP.  

 as Issuers,  

 any Subsidiary Guarantors party hereto,  

 and  

                                    ,  

 as Trustee  

 INDENTURE  

 Dated as of                         

 Debt Securities  

 

 
 

  CROSS-REFERENCE TABLE    
    

 

 

					
	TIA Section

 
	 	Indenture Section 
	 310
	 	 (a)
	 	7.10
	 
	 	 (b)
	 	7.10
	 
	 	 (c)
	 	N.A.
	 311
	 	 (a)
	 	7.11
	 
	 	 (b)
	 	7.11
	 
	 	 (c)
	 	N.A.
	 312
	 	 (a)
	 	5.01
	 
	 	 (b)
	 	5.02
	 
	 	 (c)
	 	5.02
	 313
	 	 (a)
	 	5.03
	 
	 	 (b)
	 	5.03
	 
	 	 (c)
	 	13.03
	 
	 	 (d)
	 	5.03
	 314
	 	 (a)
	 	4.05
	 
	 	 (b)
	 	N.A.
	 
	 	 (c)(1)
	 	13.05
	 
	 	 (c)(2)
	 	13.05
	 
	 	 (c)(3)
	 	N.A.
	 
	 	 (d)
	 	N.A.
	 
	 	 (e)
	 	13.05
	 
	 	 (f)
	 	N.A.
	 315
	 	 (a)
	 	7.01
	 
	 	 (b)
	 	6.07 & 13.03
	 
	 	 (c)
	 	7.01
	 
	 	 (d)
	 	7.01
	 
	 	 (e)
	 	6.08
	 316
	 	 (a) (last sentence)
	 	1.01
	 
	 	 (a)(1)(A)
	 	6.06
	 
	 	 (a)(1)(B)
	 	6.06
	 
	 	 (a)(2)
	 	9.01(d)
	 
	 	 (b)
	 	6.04
	 
	 	 (c)
	 	5.04
	 317
	 	 (a)(1)
	 	6.02
	 
	 	 (a)(2)
	 	6.02
	 
	 	 (b)
	 	4.04
	 318
	 	 (a)
	 	13.07

 

 

N.A.
means Not Applicable 

NOTE:    This
Cross-Reference table shall not, for any purpose, be deemed part of this Indenture. 

 

 

 

 
 

  TABLE OF CONTENTS    
    

 

 

							
	 
	 	 
	 	Page 	 
	 
	 	 ARTICLE I
	 	 	 	 
	 
	 	 DEFINITIONS AND INCORPORATION BY REFERENCE
	 	 	 	 
	 Section 1.01
	 	 Definitions
	 	 	

1	 
	 Section 1.02
	 	 Other Definitions
	 	 	5	 
	 Section 1.03
	 	 Incorporation by Reference of Trust Indenture Act
	 	 	6	 
	 Section 1.04
	 	 Rules of Construction
	 	 	6	 
	 
	 	 ARTICLE II
	 	 	 	 
	 
	 	 DEBT SECURITIES
	 	 	 	 
	 Section 2.01
	 	 Forms Generally
	 	 	

6	 
	 Section 2.02
	 	 Form of Trustee's Certificate of Authentication
	 	 	6	 
	 Section 2.03
	 	 Principal Amount; Issuable in Series
	 	 	7	 
	 Section 2.04
	 	 Execution of Debt Securities
	 	 	8	 
	 Section 2.05
	 	 Authentication and Delivery of Debt Securities
	 	 	9	 
	 Section 2.06
	 	 Denomination of Debt Securities
	 	 	10	 
	 Section 2.07
	 	 Registration of Transfer and Exchange
	 	 	10	 
	 Section 2.08
	 	 Temporary Debt Securities
	 	 	11	 
	 Section 2.09
	 	 Mutilated, Destroyed, Lost or Stolen Debt Securities
	 	 	12	 
	 Section 2.10
	 	 Cancellation of Surrendered Debt Securities
	 	 	12	 
	 Section 2.11
	 	 Provisions of the Indenture and Debt Securities for the Sole Benefit of the Parties and the Holders
	 	 	12	 
	 Section 2.12
	 	 Payment of Interest; Interest Rights Preserved
	 	 	13	 
	 Section 2.13
	 	 Securities Denominated in Dollars
	 	 	13	 
	 Section 2.14
	 	 Wire Transfers
	 	 	13	 
	 Section 2.15
	 	 Securities Issuable in the Form of a Global Security
	 	 	13	 
	 Section 2.16
	 	 Medium Term Securities
	 	 	15	 
	 Section 2.17
	 	 Defaulted Interest
	 	 	16	 
	 Section 2.18
	 	 CUSIP Numbers
	 	 	16	 
	 
	 	 ARTICLE III
	 	 	 	 
	 
	 	 REDEMPTION OF DEBT SECURITIES
	 	 	 	 
	 Section 3.01
	 	 Applicability of Article
	 	 	

17	 
	 Section 3.02
	 	 Notice of Redemption; Selection of Debt Securities
	 	 	17	 
	 Section 3.03
	 	 Payment of Debt Securities Called for Redemption
	 	 	18	 
	 Section 3.04
	 	 Mandatory and Optional Sinking Funds
	 	 	18	 
	 Section 3.05
	 	 Redemption of Debt Securities for Sinking Fund
	 	 	19	 

 

 ii

 
 

 

							
	 
	 	 
	 	Page 	 
	 
	 	 ARTICLE IV
	 	 	 	 
	 
	 	 PARTICULAR COVENANTS OF THE ISSUERS
	 	 	 	 
	 Section 4.01
	 	 Payment of Principal of, and Premium, If Any, and Interest on, Debt Securities
	 	 	

20	 
	 Section 4.02
	 	 Maintenance of Offices or Agencies for Registration of Transfer, Exchange and Payment of Debt Securities
	 	 	20	 
	 Section 4.03
	 	 Appointment to Fill a Vacancy in the Office of Trustee
	 	 	21	 
	 Section 4.04
	 	 Duties of Paying Agents, etc. 
	 	 	21	 
	 Section 4.05
	 	 SEC Reports; Financial Statements
	 	 	21	 
	 Section 4.06
	 	 Compliance Certificate
	 	 	22	 
	 Section 4.07
	 	 Further Instruments and Acts
	 	 	22	 
	 Section 4.08
	 	 Existence
	 	 	22	 
	 Section 4.09
	 	 Maintenance of Properties
	 	 	22	 
	 Section 4.10
	 	 Payment of Taxes and Other Claims
	 	 	23	 
	 Section 4.11
	 	 Waiver of Certain Covenants
	 	 	23	 
	 
	 	 ARTICLE V
	 	 	 	 
	 
	 	 HOLDERS' LISTS AND REPORTS BY THE TRUSTEE
	 	 	 	 
	 Section 5.01
	 	 Issuers to Furnish Trustee Information as to Names and Addresses of Holders; Preservation of Information
	 	 	

23	 
	 Section 5.02
	 	 Communications to Holders
	 	 	23	 
	 Section 5.03
	 	 Reports by Trustee
	 	 	24	 
	 Section 5.04
	 	 Record Dates for Action by Holders
	 	 	24	 
	 
	 	 ARTICLE VI
	 	 	 	 
	 
	 	 REMEDIES OF THE TRUSTEE AND HOLDERS IN EVENT OF DEFAULT
	 	 	 	 
	 Section 6.01
	 	 Events of Default
	 	 	

24	 
	 Section 6.02
	 	 Collection of Debt by Trustee, etc
	 	 	26	 
	 Section 6.03
	 	 Application of Moneys Collected by Trustee
	 	 	27	 
	 Section 6.04
	 	 Limitation on Suits by Holders
	 	 	28	 
	 Section 6.05
	 	 Remedies Cumulative; Delay or Omission in Exercise of Rights Not a Waiver of Default
	 	 	28	 
	 Section 6.06
	 	 Rights of Holders of Majority in Principal Amount of Debt Securities to Direct Trustee and to Waive Default
	 	 	28	 
	 Section 6.07
	 	 Trustee to Give Notice of Events of Defaults Known to It, but May Withhold Such Notice in Certain Circumstances
	 	 	29	 
	 Section 6.08
	 	 Requirement of an Undertaking to Pay Costs in Certain Suits under the Indenture or Against the Trustee
	 	 	29	 

 

 iii

 
 

 

							
	 
	 	 
	 	Page 	 
	 
	 	 ARTICLE VII
	 	 	 	 
	 
	 	 CONCERNING THE TRUSTEE
	 	 	 	 
	 Section 7.01
	 	 Certain Duties and Responsibilities
	 	 	

29	 
	 Section 7.02
	 	 Certain Rights of Trustee
	 	 	30	 
	 Section 7.03
	 	 Trustee Not Liable for Recitals in Indenture or in Debt Securities
	 	 	31	 
	 Section 7.04
	 	 Trustee, Paying Agent or Registrar May Own Debt Securities
	 	 	31	 
	 Section 7.05
	 	 Moneys Received by Trustee to Be Held in Trust
	 	 	32	 
	 Section 7.06
	 	 Compensation and Reimbursement
	 	 	32	 
	 Section 7.07
	 	 Right of Trustee to Rely on an Officers' Certificate Where No Other Evidence Specifically Prescribed
	 	 	32	 
	 Section 7.08
	 	 Separate Trustee; Replacement of Trustee
	 	 	32	 
	 Section 7.09
	 	 Successor Trustee by Merger
	 	 	33	 
	 Section 7.10
	 	 Eligibility; Disqualification
	 	 	34	 
	 Section 7.11
	 	 Preferential Collection of Claims Against Issuers
	 	 	34	 
	 Section 7.12
	 	 Compliance with Tax Laws
	 	 	34	 
	 
	 	 ARTICLE VIII
	 	 	 	 
	 
	 	 CONCERNING THE HOLDERS
	 	 	 	 
	 Section 8.01
	 	 Evidence of Action by Holders
	 	 	

34	 
	 Section 8.02
	 	 Proof of Execution of Instruments and of Holding of Debt Securities
	 	 	34	 
	 Section 8.03
	 	 Who May Be Deemed Owner of Debt Securities
	 	 	35	 
	 Section 8.04
	 	 Instruments Executed by Holders Bind Future Holders
	 	 	35	 
	 
	 	 ARTICLE IX
	 	 	 	 
	 
	 	 SUPPLEMENTAL INDENTURES
	 	 	 	 
	 Section 9.01
	 	 Purposes for Which Supplemental Indenture May Be Entered into Without Consent of Holders
	 	 	

36	 
	 Section 9.02
	 	 Modification of Indenture with Consent of Holders of Debt Securities
	 	 	37	 
	 Section 9.03
	 	 Effect of Supplemental Indentures
	 	 	38	 
	 Section 9.04
	 	 Debt Securities May Bear Notation of Changes by Supplemental Indentures
	 	 	38	 
	 
	 	 ARTICLE X
	 	 	 	 
	 
	 	 CONSOLIDATION, MERGER, SALE OR CONVEYANCE
	 	 	 	 
	 Section 10.01
	 	 Consolidations and Mergers of the Issuers
	 	 	

39	 
	 Section 10.02
	 	 Rights and Duties of Successor Company
	 	 	39	 
	 
	 	 ARTICLE XI
	 	 	 	 
	 
	 	 SATISFACTION AND DISCHARGE OF INDENTURE; DEFEASANCE; UNCLAIMED MONEYS
	 	 	 	 
	 Section 11.01
	 	 Applicability of Article
	 	 	

39	 
	 Section 11.02
	 	 Satisfaction and Discharge of Indenture; Defeasance
	 	 	40	 
	 Section 11.03
	 	 Conditions of Defeasance
	 	 	40	 
	 Section 11.04
	 	 Application of Trust Money
	 	 	41	 
	 Section 11.05
	 	 Repayment to Issuers
	 	 	41	 
	 Section 11.06
	 	 Indemnity for U.S. Government Obligations
	 	 	41	 
	 Section 11.07
	 	 Reinstatement
	 	 	42	 

 

 iv

 
 

 

							
	 
	 	 
	 	Page 	 
	 
	 	 ARTICLE XII
	 	 	 	 
	 
	 	 [RESERVED]
	 	 	 	 
	  This Article XII has been intentionally omitted
	 	 	

42	 
	 
	 	 ARTICLE XIII
	 	 	 	 
	 
	 	 MISCELLANEOUS PROVISIONS
	 	 	 	 
	 Section 13.01
	 	 Successors and Assigns of Issuers Bound by Indenture
	 	 	

42	 
	 Section 13.02
	 	 Acts of Board, Committee or Officer of Successor Issuer Valid
	 	 	42	 
	 Section 13.03
	 	 Required Notices or Demands
	 	 	42	 
	 Section 13.04
	 	 Indenture and Debt Securities to Be Construed in Accordance with the Laws of the State of New York
	 	 	43	 
	 Section 13.05
	 	 Officers' Certificate and Opinion of Counsel to Be Furnished upon Application or Demand by the Issuers
	 	 	43	 
	 Section 13.06
	 	 Payments Due on Legal Holidays
	 	 	43	 
	 Section 13.07
	 	 Provisions Required by TIA to Control
	 	 	44	 
	 Section 13.08
	 	 Computation of Interest on Debt Securities
	 	 	44	 
	 Section 13.09
	 	 Rules by Trustee, Paying Agent and Registrar
	 	 	44	 
	 Section 13.10
	 	 No Recourse Against Others
	 	 	44	 
	 Section 13.11
	 	 Severability
	 	 	44	 
	 Section 13.12
	 	 Effect of Headings
	 	 	44	 
	 Section 13.13
	 	 Indenture May Be Executed in Counterparts
	 	 	44	 
	 
	 	 ARTICLE XIV
	 	 	 	 
	 
	 	 GUARANTEE
	 	 	 	 
	 Section 14.01
	 	 Unconditional Guarantee
	 	 	

44	 
	 Section 14.02
	 	 Execution and Delivery of Guarantee
	 	 	46	 
	 Section 14.03
	 	 Limitation on Subsidiary Guarantors' Liability
	 	 	46	 
	 Section 14.04
	 	 Release of Subsidiary Guarantors from Guarantee
	 	 	46	 
	 Section 14.05
	 	 Subsidiary Guarantor Contribution
	 	 	47	 
	  Notation of Guarantee
	 	 	

A-1	 

 

 v

 

 

        THIS INDENTURE dated as of                    is among Global Partners LP, a Delaware limited
partnership (the "Partnership"), GLP Finance Corp. ("Finance Corp.," and together with
the Partnership, the "Issuers"), any Subsidiary Guarantors (as defined herein) party hereto
and                                    ,
a                                    , as trustee (the "Trustee").
 

 
 

  RECITALS OF THE ISSUERS AND ANY SUBSIDIARY GUARANTORS    
    

        The Issuers and any Subsidiary Guarantors have duly authorized the execution and delivery of this Indenture to provide for the issuance
from time to time of the Issuers' debentures, notes, bonds or other evidences of indebtedness to be issued in one or more series unlimited as to principal amount (herein called the "Debt Securities"),
which Debt Securities may be guaranteed by each of the Subsidiary Guarantors, as in this Indenture provided. 

        All
things necessary to make this Indenture a valid agreement of the Issuers and any Subsidiary Guarantors, in accordance with its terms, have been done. 

        NOW,
THEREFORE, THIS INDENTURE WITNESSETH 

        That
in order to declare the terms and conditions upon which the Debt Securities are authenticated, issued and delivered, and in consideration of the premises, and of the purchase and
acceptance of the Debt Securities by the Holders thereof, the Issuers, any Subsidiary Guarantor and the Trustee covenant and agree with each other, for the benefit of the respective Holders from time
to time of the Debt Securities or any series thereof, as follows: 

 
 

  ARTICLE I
  DEFINITIONS AND INCORPORATION BY REFERENCE    
    

        Section 1.01    Definitions.    

        "Affiliate"
of any specified Person means any other Person directly or indirectly controlling or controlled by or under direct or indirect common control with such specified Person. For
the purposes of this definition, "control" when used with respect to any specified Person means the power to direct the management and policies of such Person, directly or indirectly, whether through
the ownership of voting securities, by contract or otherwise; and the terms "controlling" and "controlled" have meanings correlative to the foregoing. The Trustee may request and may conclusively rely
upon an Officers' Certificate to determine whether any Person is an Affiliate of any specified Person. 

        "Agent"
means any Registrar or paying agent. 

        "Bankruptcy
Law" means Title 11, U.S. Code or any similar federal or state law for the relief of debtors. 

        "Board
of Directors" means, (i) with respect to Finance Corp., the board of directors of the corporation or any committee thereof duly authorized to act on behalf of such board,
(ii) with respect to the Partnership, the Board of Directors of the General Partner or any authorized committee of the Board of Directors of the General Partner or any directors and/or officers
of the General Partner to whom such Board of Directors or such committee shall have duly delegated its authority to act hereunder. If the Partnership shall change its form of entity to other than a
limited partnership, the references to the Board of Directors of the General Partner shall mean the Board of Directors (or other comparable governing body) of the Partnership. 

        "Business
Day" means any day other than a Legal Holiday. 

        "capital
stock" of any Person means and includes any and all shares, rights to purchase, warrants or options (whether or not currently exercisable), participations or other equivalents
of or interests in (however designated) the equity (which includes, but is not limited to, common stock, preferred stock 

1

 

and
partnership and joint venture interests) of such Person (excluding any debt securities that are convertible into, or exchangeable for, such equity). 

        "Custodian"
means any receiver, trustee, assignee, liquidator or similar official under any Bankruptcy Law. 

        "Debt"
of any Person at any date means any obligation created or assumed by such Person for the repayment of borrowed money and any guarantee thereof. 

        "Debt
Security" or "Debt Securities" has the meaning stated in the first recital of this Indenture and more particularly means any debt security or debt securities, as the case may be,
of any series authenticated and delivered under this Indenture. 

        "Default"
means any event, act or condition that is, or after notice or the passage of time or both would be, an Event of Default. 

        "Depositary"
means, unless otherwise specified by the Issuers pursuant to either Section 2.03 or 2.15, with respect to Debt Securities of any series issuable or issued in whole or
in part in the form of one or more Global Securities, The Depository Trust Company, New York, New York, or any successor thereto registered as a clearing agency under the Exchange Act or other
applicable statute or regulations. 

        "Dollar"
or "$" means such currency of the United States as at the time of payment is legal tender for the payment of public and private debts. 

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

        "Finance
Corp." means the Person named as "Finance Corp." in the first paragraph of this instrument until a successor Person shall have become such pursuant to the applicable terms of
this Indenture, and thereafter "Finance Corp." shall mean such successor Person. 

        "Floating
Rate Security" means a Debt Security that provides for the payment of interest at a variable rate determined periodically by reference to an interest rate index specified
pursuant to Section 2.03. 

        "GAAP"
means generally accepted accounting principles in the United States, as in effect from time to time. 

        "General
Partner" means Global GP LLC, a Delaware limited liability company, and its successors and permitted assigns as managing general partner of the Partnership or as
the business entity with the ultimate authority to manage the business and operations of the Partnership. 

        "Global
Security" means with respect to any series of Debt Securities issued hereunder, a Debt Security which is executed by the Issuers and authenticated and delivered by the Trustee to
the Depositary or pursuant to the Depositary's instruction, all in accordance with this Indenture and any Indentures supplemental hereto, or resolution of the Board of Directors and set forth in an
Officers' Certificate, which shall be registered in the name of the Depositary or its nominee and which shall represent, and shall be denominated in an amount equal to the aggregate principal amount
of, all the Outstanding Debt Securities of such series or any portion thereof, in either case having the same terms, including, without limitation, the same original issue date, date or dates on which
principal is due and interest rate or method of determining interest. 

        "guarantee"
means any obligation, contingent or otherwise, of any Person directly or indirectly guaranteeing any Debt or other obligation of any other Person and any obligation, direct
or indirect, contingent or otherwise, of such Person (a) to purchase or pay (or advance or supply funds for the purchase or payment of) such Debt or other obligation of such other Person
(whether arising by virtue 

2

 

of
partnership arrangements, or by agreement to keep-well, to purchase assets, goods, securities or services, to take-or-pay, or to maintain financial statement
conditions or otherwise) or (b) entered into for purposes of assuring in any other manner the obligee of such Debt or other obligation of the payment thereof or to protect such obligee against
loss in respect thereof (in whole or in part); provided, however, that the term "guarantee" shall not include endorsements for collection or deposit in the ordinary course of business. The term
"guarantee" used as a verb has a corresponding meaning. 

        "Holder,"
"Holder of Debt Securities" or other similar terms means, a Person in whose name a Debt Security is registered in the Debt Security Register (as defined in
Section 2.07(a)). 

        "Indenture"
means this instrument as originally executed, or, if amended or supplemented as herein provided, as so amended or supplemented and shall include the form and terms of
particular series of Debt Securities as contemplated hereunder, whether or not a supplemental Indenture is entered into with respect thereto. 

        "Issuers"
means the Partnership and Finance Corp. 

        "Issuer
Order" means a written request or order signed on behalf of each of the Issuers by one of its Officers and delivered to the Trustee. 

        "Legal
Holiday" means a Saturday, a Sunday or a day on which banking institutions in the City of New York, New York or at a Place of Payment are authorized by law, regulation or
executive order to remain closed. If a payment date is a Legal Holiday at a Place of Payment, payment may be made at that place on the next succeeding day that is not a Legal Holiday, and no interest
shall accrue for the intervening period. 

        "Lien"
means, with respect to any asset, any mortgage, lien, security interest, pledge, charge or other encumbrance of any kind in respect of such asset, whether or not filed, recorded
or otherwise perfected under applicable law. 

        "Officer"
means, with respect to any Person, the Chairman of the Board, the Chief Executive Officer, the President, the Chief Operating Officer, the Chief Financial Officer, the
Treasurer, any Assistant Treasurer, the Controller, the Secretary or any Vice President of such Person (or, if such Person is a limited partnership, the general partner of such Person, except it shall
be the General Partner in the case of the Partnership so long as it is a limited partnership). 

        "Officers'
Certificate" means a certificate signed on behalf of each Issuer by any two of its Officers, one of whom must be the principal executive officer, the principal financial
officer or the principal accounting officer of such Issuer, that meets the requirements of Section 13.05 hereof. 

        "Opinion
of Counsel" means a written opinion from legal counsel who is acceptable to the Trustee. The counsel may be an employee of or counsel to the Partnership or the Trustee. 

        "Original
Issue Discount Debt Security" means any Debt Security which provides for an amount less than the principal amount thereof to be due and payable upon a declaration of
acceleration of the maturity thereof pursuant to Section 6.01. 

        "Outstanding,"
when used with respect to any series of Debt Securities, means, as of the date of determination, all Debt Securities of that series theretofore authenticated and delivered
under this Indenture, except: 

	(a)
	Debt
Securities of that series theretofore canceled by the Trustee or delivered to the Trustee for cancellation;

	(b)
	Debt
Securities of that series for whose payment or redemption money in the necessary amount has been theretofore deposited with the Trustee or any paying
agent (other than an Issuer) in trust or set aside and segregated in trust by the Issuers (if an Issuer shall act as its 

3

 

own
paying agent) for the Holders of such Debt Securities; provided, that, if such Debt Securities are to be redeemed, notice of such redemption has been duly given pursuant to this Indenture or
provision therefor satisfactory to the Trustee has been made; and  

	(c)
	Debt
Securities of that series which have been paid pursuant to Section 2.09 or in exchange for or in lieu of which other Debt Securities have been
authenticated and delivered pursuant to this Indenture, other than any such Debt Securities in respect of which there shall have been presented to the Trustee proof satisfactory to it that such Debt
Securities are held by a protected purchaser in whose hands such Debt Securities are valid obligations of the Issuers; 

provided,
however, that in determining whether the Holders of the requisite principal amount of the Outstanding Debt Securities of any series have given any request, demand, authorization, direction,
notice, consent or waiver hereunder, Debt Securities owned by either of the Issuers or any other obligor upon the Debt Securities or any Affiliate of the Partnership or of such other obligor shall be
disregarded and deemed not to be Outstanding, except that, in determining whether the Trustee shall be protected in relying upon any such request, demand, authorization, direction, notice, consent or
waiver, only Debt Securities which a Trust Officer actually knows to be so owned shall be so disregarded. Debt 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 so to act with respect to such Debt Securities and that the pledgee is not an Issuer or any other obligor upon
the Debt Securities or an Affiliate of the Partnership or of such other obligor. In determining whether the Holders of the requisite principal amount of Outstanding Debt Securities have given any
request, demand, authorization, direction, notice, consent or waiver hereunder, the principal amount of an Original Issue Discount Debt Security that shall be deemed to be Outstanding for such
purposes shall be the amount of the principal thereof that would be due and payable as of the date of such determination upon a declaration of acceleration of the maturity thereof pursuant to
Section 6.01. 

        "Partnership"
means the Person named as the "Partnership" in the first paragraph of this instrument until a successor Person shall have become such pursuant to the applicable provisions
of this Indenture, and thereafter "Partnership" shall mean such successor Person. 

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

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

        "SEC"
means the Securities and Exchange Commission. 

        "Securities
Act" means the Securities Act of 1933, as amended, and any successor statute. 

        "Stated
Maturity" means, with respect to any security, the date specified in such security as the fixed date on which the payment of principal of such security is due and payable,
including pursuant to any mandatory redemption provision (but excluding any provision providing for the repurchase of such security at the option of the holder thereof upon the happening of any
contingency beyond the control of the issuer unless such contingency has occurred). 

        "Subsidiary"
of any Person means: 

	(1)
	any
corporation, association or other business entity of which more than 50% of the total voting power of equity interests entitled, without regard to the
occurrence of any contingency, to vote in the election of directors, managers, trustees or equivalent Persons thereof is at the time of determination owned or controlled, directly or indirectly, by
such Person or one or more of the other Subsidiaries of such Person or combination thereof; or 

4

 

	(2)
	in
the case of a partnership, more than 50% of the partners' equity interests, considering all partners' equity interests as a single class, is at such time
of determination owned or controlled, directly or indirectly, by such Person or one or more of the other Subsidiaries of such Person or combination thereof. 

        "Subsidiary
Guarantors" means any Subsidiary of the Partnership (except Finance Corp.) who may execute this Indenture, or a supplement hereto, for the purpose of providing a Guarantee of
Debt Securities pursuant to this Indenture until a successor Person shall have become such pursuant to the applicable provisions of this Indenture, and thereafter "Subsidiary Guarantors" shall mean
such successor Person. 

        "TIA"
means the Trust Indenture Act of 1939, as amended (15 U.S.C. §§ 77aaa-77bbbb), as in effect on the date of this Indenture as originally
executed and, to the extent required by law, as amended. 

        "Trustee"
initially means                                    and any other
Person or Persons appointed as such from time to time pursuant to Section 7.08, and, subject to the provisions of
Article VII, includes its or their successors and assigns. If at any time there is more than one such Person, "Trustee" as used with respect to the Debt Securities of any series shall mean the
Trustee with respect to the Debt Securities of that series. 

        "Trust
Officer" means any officer or assistant officer of the Trustee assigned by the Trustee to administer its corporate trust matters. 

        "United
States" means the United States of America (including the States and the District of Columbia), its territories, its possessions and other areas subject to its jurisdiction. 

        "U.S.
Government Obligations" means direct obligations of the United States of America, obligations on which the payment of principal and interest is fully guaranteed by the United
States of America or obligations or guarantees for the payment of which the full faith and credit of the United States of America is pledged. 

        "Yield
to Maturity" means the yield to maturity, calculated at the time of issuance of a series of Debt Securities, or, if applicable, at the most recent redetermination of interest on
such series and calculated in accordance with accepted financial practice. 

        Section 1.02    Other Definitions.    

 

 

					
	Term

 
	 	Defined in Section 	 
	 "Debt Security Register"
	 	 	2.07	 
	 "Defaulted Interest"
	 	 	2.17	 
	 "Event of Default"
	 	 	6.01	 
	 "Funding Guarantor"
	 	 	14.05	 
	 "Guarantee"
	 	 	14.01	 
	 "Place of Payment"
	 	 	2.03	 
	 "Registrar"
	 	 	2.07	 
	 "Successor Company"
	 	 	10.01	 

 

 5

 

        Section 1.03    Incorporation by Reference of Trust Indenture Act.    Whenever this Indenture refers to a
provision of the TIA, the provision is incorporated by reference in and made a part of this Indenture. 

        All
terms used in this Indenture that are defined by the TIA, defined by TIA reference to another statute or defined by SEC rule under the TIA have the meanings so assigned to them. 

        Section 1.04    Rules of Construction.    Unless the context otherwise requires: 

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

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

        (c)   "or"
is not exclusive; 

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

        (e)   provisions
apply to successive events and transactions; and 

        (f)    the
principal amount of any noninterest bearing or other discount security at any date shall be the principal amount thereof that would be shown on a balance sheet of
the issuer dated such date prepared in accordance with GAAP. 

 
 

  ARTICLE II
  DEBT SECURITIES    
    

        Section 2.01    Forms Generally.    The Debt Securities of each series shall be in substantially the form
established without the approval of any Holder by or pursuant to a resolution of the Board of Directors of each Issuer or in one or more Indentures supplemental hereto, in each case with 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 the Issuers may deem appropriate (and, if not contained in a supplemental Indenture entered into in accordance with Article IX, as are not prohibited
by the provisions of this Indenture) or as may be required or appropriate to comply with any law or with any rules made pursuant thereto or with any rules of any securities exchange on which such
series of Debt Securities may be listed, or to conform to general usage, or as may, consistently herewith, be determined by the officers executing such Debt Securities as evidenced by their execution
of the Debt Securities. 

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

        Section 2.02    Form of Trustee's Certificate of Authentication.    The Trustee's certificate of authentication
on all Debt Securities authenticated by the Trustee shall be in substantially the following form: 

 
 

  TRUSTEE'S CERTIFICATE OF AUTHENTICATION    
    

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

 

 

					
	 	 	                                    ,

 As Trustee
	

 	
 	
By:	
 	

 Authorized Signatory

 

 6

 

  
        Section 2.03    Principal Amount; Issuable in Series.    The aggregate principal amount of Debt Securities
which may be issued, executed, authenticated, delivered and outstanding under this Indenture is unlimited. 

        The
Debt Securities may be issued in one or more series in fully registered form. There shall be established, without the approval of any Holders, in or pursuant to a resolution of the
Board of Directors of each Issuer and set forth in an Officers' Certificate, or established in one or more Indentures supplemental hereto, prior to the issuance of Debt Securities of any series any or
all of the following: 

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

        (b)   any
limit upon the aggregate principal amount of the Debt Securities of the series which may be authenticated and delivered under this Indenture (except for Debt
Securities authenticated and delivered upon registration of transfer of, or in exchange for, or in lieu of, other Debt Securities of the series pursuant to this Article II); 

        (c)   the
date or dates on which the principal of and premium, if any, on the Debt Securities of the series are payable; 

        (d)   the
rate or rates (which may be fixed or variable) at which the Debt Securities of the series shall bear interest, if any, or the method of determining such rate or
rates, the date or dates from which such interest shall accrue, the interest payment dates on which such interest shall be payable, or the method by which such date will be determined, the record
dates for the determination of Holders thereof to whom such interest is payable; and the basis upon which interest will be calculated if other than that of a 360-day year of twelve
thirty-day months; 

        (e)   the
place or places, if any, in addition to or instead of the corporate trust office of the Trustee, where the principal of, and premium, if any, and interest on, Debt
Securities of the series shall be payable ("Place of Payment"); 

        (f)    the
price or prices at which, the period or periods within which and the terms and conditions upon which Debt Securities of the series may be redeemed, in whole or in
part, at the option of the Issuers or otherwise; 

        (g)   whether
Debt Securities of the series are entitled to the benefits of any Guarantee of any Subsidiary Guarantors pursuant to this Indenture; 

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

        (i)    the
terms, if any, upon which the Debt Securities of the series may be convertible into or exchanged for capital stock (which may be represented by depositary shares),
other Debt Securities or warrants for capital stock or Debt or other securities of any kind of either of the Issuers or any other obligor and the terms and conditions upon which such conversion or
exchange shall be effected, including the initial conversion or exchange price or rate, the conversion or exchange period and any other provision in addition to or in lieu of those described herein; 

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

7

 

        (k)   if
the amount of principal of or any premium or interest on Debt Securities of the series may be determined with reference to an index or pursuant to a formula, the
manner in which such amounts will be determined; 

        (l)    if
the principal amount payable at the Stated Maturity of Debt Securities of the series will not be determinable as of any one or more dates prior to such Stated
Maturity, the amount which will be deemed to be such principal amount as of any such date for any purpose, including the principal amount thereof which will be due and payable upon any maturity other
than the Stated Maturity or which will be deemed to be Outstanding as of any such date (or, in any such case, the manner in which such deemed principal amount is to be determined); 

        (m)  any
changes or additions to Article XI, including the addition of additional covenants that may be subject to the covenant defeasance option pursuant to
Section 11.02(b); 

        (n)   if
other than the principal amount thereof, the portion of the principal amount of Debt Securities of the series which shall be payable upon declaration of acceleration
of the maturity thereof pursuant to Section 6.01 or provable in bankruptcy pursuant to Section 6.02; 

        (o)   the
terms, if any, of the transfer, mortgage, pledge or assignment as security for the Debt Securities of the series of any properties, assets, moneys, proceeds,
securities or other collateral, including whether certain provisions of the TIA are applicable and any corresponding changes to provisions of this Indenture as currently in effect; 

        (p)   any
addition to or change in the Events of Default with respect to the Debt Securities of the series and any change in the right of the Trustee or the Holders to declare
the principal of, and premium and interest on, such Debt Securities due and payable; 

        (q)   if
the Debt Securities of the series shall be issued in whole or in part in the form of a Global Security or Securities, the terms and conditions, if any, upon which
such Global Security or Securities may be exchanged in whole or in part for other individual Debt Securities in definitive registered form; and the Depositary for such Global Security or Securities
and the form of any legend or legends to be borne by any such Global Security or Securities in addition to or in lieu of the legend referred to in Section 2.15(a); 

        (r)   any
trustees, authenticating or paying agents, transfer agents or registrars; 

        (s)   the
applicability of, and any addition to or change in the covenants and definitions currently set forth in this Indenture or in the terms currently set forth in
Article X, including conditioning any merger, conveyance, transfer or lease permitted by Article X upon the satisfaction of any Debt coverage standard by the Issuers and Successor
Company (as defined in Article X); 

        (t)    with
regard to Debt Securities of the series that do not bear interest, the dates for certain required reports to the Trustee; and 

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

        All
Debt Securities of any one series shall be substantially identical except as to denomination and except as may otherwise be provided in or pursuant to such resolution of the Board of
Directors and as set forth in such Officers' Certificate or in any such Indenture supplemental hereto. 

        Section 2.04    Execution of Debt Securities.    The Debt Securities shall be signed on behalf of each of the
Issuers by at least one of its Officers. Such signatures upon the Debt Securities may be the manual or facsimile signatures of the present or any future such authorized officers and may be imprinted
or otherwise reproduced on the Debt Securities. 

8

 

        Only
such Debt Securities as shall bear thereon a certificate of authentication substantially in the form hereinbefore recited, signed manually by the Trustee, shall be entitled to the
benefits of this Indenture or be valid or obligatory for any purpose. Such certificate by the Trustee upon any Debt Security executed on behalf of each of the Issuers by at least one of its Officers
shall be conclusive evidence that the Debt Security so authenticated has been duly authenticated and delivered hereunder. 

        In
case any Officer of either Issuer who shall have signed any of the Debt Securities shall cease to be such Officer before the Debt Securities so signed shall have been authenticated
and delivered by the Trustee, or disposed of by the Issuers, such Debt Securities nevertheless may be authenticated and delivered or disposed of as though the Person who signed such Debt Securities
had not ceased to be such Officer; and any Debt Security may be signed on behalf of either Issuer by such Persons as, at the actual date of the execution of such Debt Security, shall be the proper
Officers of such Issuer, although at the date of such Debt Security or of the execution of this Indenture any such Person was not such Officer. 

        Section 2.05    Authentication and Delivery of Debt Securities.    At any time and from time to time after the
execution and delivery of this Indenture, the Issuers may deliver to the Trustee for authentication Debt Securities of any series executed by the Issuers, and the Trustee shall thereupon authenticate
and deliver said Debt Securities to or upon an Issuer Order. In authenticating such Debt Securities, and
accepting the additional responsibilities under this Indenture in relation to such Debt Securities, the Trustee shall be entitled to receive, and (subject to Section 7.01) shall be fully
protected in relying upon: 

        (a)   a
copy of any resolution or resolutions of the Board of Directors of each Issuer, certified by the Secretary or Assistant Secretary of each of the General Partner and
Finance Corp., authorizing the terms of issuance of any series of Debt Securities; 

        (b)   an
executed supplemental Indenture, if any; 

        (c)   an
Officers' Certificate; and 

        (d)   an
Opinion of Counsel prepared in accordance with Section 13.05 which shall also state: 

          (i)  that
the form of such Debt Securities has been established by or pursuant to a resolution of the Board of Directors of each Issuer or by a supplemental Indenture as
permitted by Section 2.01 in conformity with the provisions of this Indenture; 

         (ii)  that
the terms of such Debt Securities have been established by or pursuant to a resolution of the Board of Directors or by a supplemental Indenture as permitted by
Section 2.03 in conformity with the provisions of this Indenture; 

        (iii)  that
such Debt Securities, when authenticated and delivered by the Trustee and issued by the Issuers in the manner and subject to any conditions specified in such
Opinion of Counsel, will constitute valid and legally binding obligations of the Issuers, enforceable in accordance with their terms except as the enforceability thereof may be limited by bankruptcy,
insolvency or similar laws affecting the enforcement of creditors' rights generally and rights of acceleration and the availability of equitable remedies may be limited by equitable principles of
general applicability; 

        (iv)  that
the Issuers have the power to issue such Debt Securities and has duly taken all necessary action with respect to such issuance; 

         (v)  that
the issuance of such Debt Securities will not contravene the organizational documents of the Issuers or result in any material violation of any of the terms or
provisions of any law or regulation or of any material indenture, mortgage or other agreement known to such counsel by which the Issuers are bound; 

9

 

        (vi)  that
authentication and delivery of such Debt Securities and the execution and delivery of any supplemental Indenture will not violate the terms of this Indenture; and 

       (vii)  such
other matters as the Trustee may reasonably request. 

        Such
Opinion of Counsel need express no opinion as to whether a court in the United States would render a money judgment in a currency other than that of the United States. 

        The
Trustee shall have the right to decline to authenticate and deliver any Debt Securities under this Section 2.05 if the Trustee, being advised by counsel, determines that such
action may not lawfully be taken or if the Trustee in good faith by its board of directors or trustees, executive committee or a trust committee of directors, trustees or Officers (or any combination
thereof) shall determine that such action would expose the Trustee to personal liability to existing Holders. 

        The
Trustee may appoint an authenticating agent reasonably acceptable to the Issuers to authenticate Debt Securities of any series. Unless limited by the terms of such appointment, an
authenticating agent may authenticate Debt Securities whenever the Trustee may do so. Each reference in this Indenture to authentication by the Trustee includes authentication by such agent. An
authenticating agent has the same rights as any Registrar, paying agent or agent for service of notices and demands. 

        Unless
otherwise provided in the form of Debt Security for any series, each Debt Security shall be dated the date of its authentication. 

        Section 2.06    Denomination of Debt Securities.    Unless otherwise provided in the form of Debt Security for
any series, the Debt Securities of each series shall be issuable only as fully registered Debt Securities in such Dollar denominations as shall be specified or contemplated by Section 2.03. In
the absence of any such specification with respect to the Debt Securities of any series, the Debt Securities of such series shall be issuable in denominations of $1,000 and any integral multiple
thereof. 

        Section 2.07    Registration of Transfer and Exchange.    

        (a)   The
Issuers shall keep or cause to be kept a register for each series of Debt Securities issued hereunder (hereinafter collectively referred to as the "Debt Security
Register"), in which, subject to such reasonable regulations as it may prescribe, the Issuers shall provide for the registration of all Debt Securities and the transfer of Debt Securities as in this
Article II provided. At all reasonable times the Debt Security Register shall be open for inspection by the Trustee. Subject to Section 2.15, upon due presentment for registration of
transfer of any Debt Security at any office or agency to be maintained by the Issuers in accordance with the provisions of Section 4.02, the Issuers shall execute and the Trustee shall
authenticate and deliver in the name of the transferee or transferees a new Debt Security or Debt Securities of authorized denominations for a like aggregate principal amount. In no event may Debt
Securities be issued as, or exchanged for, bearer securities. 

        Unless
and until otherwise determined by the Issuers by resolutions of each Issuer's Board of Directors, the Debt Security Register shall be kept at the principal corporate trust office
of the Trustee and, for this purpose, the Trustee shall be designated "Registrar." 

        Debt
Securities of any series (other than a Global Security, except as set forth below) may be exchanged for a like aggregate principal amount of Debt Securities of the same series of
other authorized denominations. Subject to Section 2.15, Debt Securities to be exchanged shall be surrendered at the office or agency to be maintained by the Issuers as provided in
Section 4.02, and the Issuers shall execute and the Trustee shall authenticate and deliver in exchange therefor the Debt Security or Debt Securities which the Holder making the exchange shall
be entitled to receive. 

10

 

        (b)   All
Debt Securities presented or surrendered for registration of transfer, exchange or payment shall (if so required by the Issuers, the Trustee or the Registrar) be
duly endorsed or be accompanied by a written instrument or instruments of transfer, in form satisfactory to the Issuers, the Trustee and the Registrar, duly executed by the Holder or his attorney duly
authorized in writing. 

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

        No
service charge shall be made for any exchange or registration of transfer of Debt Securities (except as provided by Section 2.09), but the Issuers may require payment of a sum
sufficient to cover any tax, fee, assessment or other governmental charge that may be imposed in relation thereto, other than those
expressly provided in this Indenture to be made at the Issuers' own expense or without expense or without charge to the Holders. 

        The
Issuers shall not be required (i) to issue, register the transfer of or exchange any Debt Securities for a period of 15 days next preceding any mailing of notice of
redemption of Debt Securities of such series or (ii) to register the transfer of or exchange any Debt Securities selected, called or being called for redemption. 

        Prior
to the due presentation for registration of transfer of any Debt Security, the Issuers, the Subsidiary Guarantors, the Trustee, any paying agent or any Registrar may deem and treat
the Person in whose name a Debt Security is registered as the absolute owner of such Debt Security for the purpose of receiving payment of or on account of the principal of, and premium, if any, and
(subject to Section 2.12) interest on, such Debt Security and for all other purposes whatsoever, whether or not such Debt Security is overdue, and none of the Issuers, the Subsidiary
Guarantors, the Trustee, any paying agent or any Registrar shall be affected by notice to the contrary. 

        None
of the Issuers, the Subsidiary Guarantors, the Trustee, any agent of the Trustee, any paying agent or any 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 Global Security or for maintaining, supervising or reviewing any records relating to such beneficial ownership
interests. 

        Section 2.08    Temporary Debt Securities.    Pending the preparation of definitive Debt Securities of any
series, the Issuers may execute and the Trustee shall authenticate and deliver temporary Debt Securities (printed, lithographed, photocopied, typewritten or otherwise produced) of any authorized
denomination, and substantially in the form of the definitive Debt Securities in lieu of which they are issued, in registered form with such omissions, insertions and variations as may be appropriate
for temporary Debt Securities, all as may be determined by the Issuers with the concurrence of the Trustee. Temporary Debt Securities may contain such reference to any provisions of this Indenture as
may be appropriate. Every temporary Debt Security shall be executed by the Issuers and be authenticated by the Trustee upon the same conditions and in substantially the same manner, and with like
effect, as the definitive Debt Securities. 

        If
temporary Debt Securities of any series are issued, the Issuers will cause definitive Debt Securities of such series to be prepared without unreasonable delay. After the preparation
of definitive Debt Securities of such series, the temporary Debt Securities of such series shall be exchangeable for definitive Debt Securities of such series upon surrender of the temporary Debt
Securities of such series at the office or agency of the Issuers at a Place of Payment for such series, without charge to the Holder thereof, except as provided in Section 2.07 in connection
with a transfer. Upon surrender for cancellation of any one or more temporary Debt Securities of any series, the Issuers shall execute and the Trustee shall authenticate and deliver in exchange
therefor a like principal amount of definitive Debt Securities of the same series of authorized denominations and of like tenor. Until so exchanged, temporary Debt Securities of any series shall in
all respects be entitled to the same benefits under this Indenture as definitive Debt Securities of such series. 

11

 

 

        Upon any exchange of a portion of a temporary Global Security for a definitive Global Security or for the individual Debt Securities represented thereby pursuant to Section 2.07
or this Section 2.08, the temporary Global Security shall be endorsed by the Trustee to reflect the reduction of the principal amount evidenced thereby, whereupon the principal amount of such
temporary Global Security shall be reduced for all purposes by the amount to be exchanged and endorsed. 

        Section 2.09    Mutilated, Destroyed, Lost or Stolen Debt Securities.    If (a) any mutilated Debt
Security is surrendered to the Trustee at its corporate trust office or (b) the Issuers and the Trustee receive evidence to their satisfaction of the destruction, loss or theft of any Debt
Security, and there is delivered to the Issuers and the Trustee such security or indemnity as may be required by them to save each of them and any paying agent harmless, and neither the Issuers nor
the Trustee receives notice that such Debt Security has been acquired by a protected purchaser, then the Issuers shall execute and, upon an Issuer Order, the Trustee shall authenticate and deliver, in
exchange for or in lieu of any such mutilated, destroyed, lost or stolen Debt Security, a new Debt Security of the same series of like tenor, form, terms and principal amount, bearing a number not
contemporaneously Outstanding. Upon the issuance of any substituted Debt Security, the Issuers or the Trustee may require the payment of a sum sufficient to cover any tax, fee, assessment or other
governmental charge that may be imposed in relation thereto and any other expenses connected therewith. In case any Debt Security which has matured or is about to mature or which has been called for
redemption shall become mutilated or be destroyed, lost or stolen, the Issuers may, instead of issuing a substituted Debt Security, pay or authorize the payment of the same (without surrender thereof
except in the case of a mutilated Debt Security) if the applicant for such payment shall furnish the Issuers and the Trustee with such security or indemnity as either may require to save it harmless
from all risk, however remote, and, in case of destruction, loss or theft, evidence to the satisfaction of the Issuers and the Trustee of the destruction, loss or theft of such Debt Security and of
the ownership thereof. 

        Every
substituted Debt Security of any series issued pursuant to the provisions of this Section 2.09 by virtue of the fact that any Debt Security is destroyed, lost or stolen
shall constitute an original additional contractual obligation of the Issuers, whether or not the destroyed, lost or stolen Debt Security shall be found at any time, and shall be entitled to all the
benefits of this Indenture equally and proportionately with any and all other Debt Securities of that series duly issued hereunder. All Debt Securities shall be held and owned upon the express
condition that the foregoing provisions are
exclusive with respect to the replacement or payment of mutilated, destroyed, lost or stolen Debt Securities, and shall preclude any and all other rights or remedies, notwithstanding any law or
statute existing or hereafter enacted to the contrary with respect to the replacement or payment of negotiable instruments or other securities without their surrender. 

        Section 2.10    Cancellation of Surrendered Debt Securities.    All Debt Securities surrendered for payment,
redemption, registration of transfer or exchange shall, if surrendered to an Issuer or any paying agent or a Registrar, be delivered to the Trustee for cancellation by it, or if surrendered to the
Trustee, shall be canceled by it, and no Debt Securities shall be issued in lieu thereof except as expressly permitted by any of the provisions of this Indenture. All canceled Debt Securities held by
the Trustee shall be destroyed (subject to the record retention requirements of the Exchange Act) and certification of their destruction delivered to the Issuers, unless otherwise directed. On request
of the Issuers, the Trustee shall deliver to the Issuers canceled Debt Securities held by the Trustee. If either of the Issuers shall acquire any of the Debt Securities, however, such acquisition
shall not operate as a redemption or satisfaction of the Debt represented thereby unless and until the same are delivered or surrendered to the Trustee for cancellation. The Issuers may not issue new
Debt Securities to replace Debt Securities it has redeemed, paid or delivered to the Trustee for cancellation. 

        Section 2.11    Provisions of the Indenture and Debt Securities for the Sole Benefit of the Parties and the
Holders.    Nothing in this Indenture or in the Debt Securities, expressed or implied, shall give or be construed to give to any Person, other than the parties
hereto, the Holders or any Registrar or paying 

12

 

agent,
any legal or equitable right, remedy or claim under or in respect of this Indenture, or under any covenant, condition or provision herein contained; all its covenants, conditions and provisions
being for the sole benefit of the parties hereto, the Holders and any Registrar and paying agents. 

        Section 2.12    Payment of Interest; Interest Rights Preserved.    

        (a)   Interest
on any Debt Security that is payable and is punctually paid or duly provided for on any interest payment date shall be paid to the Person in whose name such
Debt Security is registered at the close of business on the regular record date for such interest notwithstanding the cancellation of such Debt Security upon any transfer or exchange subsequent to the
regular record date. Payment of interest on Debt Securities shall be made at the corporate trust office of the Trustee (except as otherwise specified pursuant to Section 2.03), or at the option
of the Issuers, by check mailed to the address of the Person entitled thereto as such address shall appear in the Debt Security Register or, if provided pursuant to Section 2.03 and in
accordance with arrangements satisfactory to the Trustee, at the option of the Holder by wire transfer to an account designated by the Holder. 

        (b)   Subject
to the foregoing provisions of this Section 2.12 and Section 2.17, each Debt Security of a particular series delivered under this Indenture upon
registration of transfer of or in exchange for or in lieu of any other Debt Security of the same series shall carry the rights to interest accrued and unpaid, and to accrue, which were carried by such
other Debt Security. 

        Section 2.13    Securities Denominated in Dollars.    Except as otherwise specified pursuant to
Section 2.03 for Debt Securities of any series, payment of the principal of, and premium, if any, and interest on, Debt Securities of such series will be made in Dollars. 

        Section 2.14    Wire Transfers.    Notwithstanding any other provision to the contrary in this Indenture, the
Issuers may make any payment of moneys required to be deposited with the Trustee on account of principal of, or premium, if any, or interest on, the Debt Securities (whether pursuant to optional or
mandatory redemption payments, interest payments or otherwise) by wire transfer in immediately available funds to an account designated by the Trustee before 11:00 a.m., New York City time, on
the date such moneys are to be paid to the Holders of the Debt Securities in accordance with the terms hereof. 

        Section 2.15    Securities Issuable in the Form of a Global Security.    

        (a)   If
the Issuers shall establish pursuant to Sections 2.01 and 2.03 that the Debt Securities of a particular series are to be issued in whole or in part in the form
of one or more Global Securities, then the Issuers shall execute and the Trustee or its agent shall, in accordance with Section 2.05, authenticate and deliver, such Global Security or
Securities, which shall represent, and shall be denominated in an amount equal to the aggregate principal amount of, the Outstanding Debt Securities of such series to be represented by such Global
Security or Securities, or such portion thereof as the Issuers shall specify in an Officers' Certificate, shall be registered in the name of the Depositary for such Global Security or Securities or
its nominee, shall be delivered by the Trustee or its agent to the Depositary or pursuant to the Depositary's instruction and shall bear a legend substantially to the following effect: 

        "UNLESS
THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY, A NEW YORK CORPORATION ("DTC"), NEW YORK, NEW YORK, TO THE ISSUERS OR THEIR AGENT
FOR REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY CERTIFICATE ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR SUCH OTHER NAME AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE
OF DTC (AND ANY PAYMENT IS MADE TO CEDE & CO., OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR 

13

 

VALUE
OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST HEREIN. 

        TRANSFERS
OF THIS GLOBAL SECURITY SHALL BE LIMITED TO TRANSFERS IN WHOLE, BUT NOT IN PART, TO NOMINEES OF DTC OR TO A SUCCESSOR THEREOF OR SUCH SUCCESSOR'S NOMINEE AND TRANSFERS OF
PORTIONS OF THIS GLOBAL SECURITY SHALL BE LIMITED TO TRANSFERS MADE IN ACCORDANCE WITH THE RESTRICTIONS SET FORTH IN THE INDENTURE REFERRED TO HEREIN." 

or
such other legend as may then be required by the Depositary for such Global Security or Securities. 

        (b)   Notwithstanding
any other provision of this Section 2.15 or of Section 2.07 to the contrary, and subject to the provisions of paragraph (c) below,
unless the terms of a Global Security expressly permit such Global Security to be exchanged in whole or in part for definitive Debt Securities in registered form, a Global Security may be transferred,
in whole but not in part and in the manner provided in Section 2.07, only by the Depositary to a nominee of the Depositary for such Global Security, or by a nominee of the Depositary to the
Depositary or another nominee of the Depositary, or by the Depositary or a nominee of the Depositary to a successor Depositary for such Global Security selected or approved by the Issuers, or to a
nominee of such successor Depositary. 

        (c)   (i)    If
at any time the Depositary for a Global Security or Securities notifies the Issuers that it is unwilling or unable to continue as Depositary for such
Global Security or Securities or if at any time the Depositary for the Debt Securities for such series shall no longer be eligible or in good standing under the Exchange Act or other applicable
statute, rule or regulation, the Issuers shall appoint a successor Depositary with respect to such Global Security or Securities. If a successor Depositary for such Global Security or Securities is
not appointed by the Issuers within 90 days after the Issuers receive such notice or becomes aware of such ineligibility, the Issuers shall execute, and the Trustee or its agent, upon receipt
of an Issuer Order for the authentication and delivery of such individual Debt Securities of such series in exchange for such Global Security or Securities, will authenticate and deliver, individual
Debt Securities of such series of like tenor and terms in definitive form in an aggregate principal amount equal to the principal amount of the Global Security or Securities in exchange for such
Global Security or Securities. 

         (ii)  If
an Event of Default occurs and the Depositary for a Global Security or Securities notifies the Trustee of its decision to require that the Debt Securities of any
series or portion thereof issued or issuable in the form of one or more Global Securities shall no longer be represented by such Global Security or Securities, the Issuers shall appoint a successor
Depositary with respect to such Global Security or Securities. In such event the Issuers will execute, and the Trustee, upon receipt of an Issuer Order for the authentication and delivery of
individual Debt Securities of such series in exchange in whole or in part for such Global Security or Securities, will authenticate and deliver individual Debt Securities of such series of like tenor
and terms in definitive form in an aggregate principal amount equal to the principal amount of such series or portion thereof in exchange for such Global Security or Securities. 

        (iii)  If
specified by the Issuers pursuant to Sections 2.01 and 2.03 with respect to Debt Securities issued or issuable in the form of a Global Security, the
Depositary for such Global Security may surrender such Global Security in exchange in whole or in part for individual Debt Securities of such series of like tenor and terms in definitive form on such
terms as are acceptable to the Issuers, the Trustee and such Depositary. Thereupon the Issuers shall execute, and the Trustee or its agent upon receipt of an Issuer Order for the authentication and
delivery of definitive Debt Securities of such series shall authenticate and deliver, without service charge, to each Person specified by such Depositary a new Debt Security or Securities of the same
series of like tenor and terms and of any authorized denomination as requested by such Person in aggregate principal amount equal to and in exchange for such Person's beneficial interest in the Global 

14

 

Security;
and to such Depositary a new Global Security of like tenor and terms and in an authorized denomination equal to the difference, if any, between the principal amount of the surrendered Global
Security and the aggregate principal amount of Debt Securities delivered to Holders thereof. 

        (iv)  In
any exchange provided for in any of the preceding three paragraphs, the Issuers will execute and the Trustee or its agent will authenticate and deliver individual
Debt Securities. Upon the exchange of the entire principal amount of a Global Security for individual Debt Securities, such Global Security shall be canceled by the Trustee or its agent. Except as
provided in the preceding paragraph, Debt Securities issued in exchange for a Global Security pursuant to this Section 2.15 shall be registered in such names and in such authorized
denominations as the Depositary for such Global Security, pursuant to instructions from its direct or indirect participants or otherwise, shall instruct the Trustee or the Registrar. The Trustee or
the Registrar shall deliver such Debt Securities to the Persons in whose names such Debt Securities are so registered. 

         (v)  Payments
in respect of the principal of and interest on any Debt Securities registered in the name of the Depositary or its nominee will be payable to the Depositary or
such nominee in its capacity as the registered owner of such Global Security. The Issuers, any Subsidiary Guarantors and the Trustee may treat the Person in whose name the Debt Securities, including
the Global Security, are registered as the owner thereof for the purpose of receiving such payments and for any and all other purposes whatsoever. None of the Issuers, any Subsidiary Guarantors, the
Trustee, any Registrar, the paying agent or any agent of the Issuers, any Subsidiary Guarantors or the Trustee will have any responsibility or liability for any aspect of the records relating to or
payments made on account of the beneficial ownership interests of the Global Security by the Depositary or its nominee or any of the Depositary's direct or indirect participants, or for maintaining,
supervising or reviewing any records of the Depositary, its nominee or any of its direct or indirect participants relating to the beneficial ownership interests of the Global Security, the payments to
the beneficial owners of the Global Security of amounts paid to the Depositary or its nominee, or any other matter relating to the actions and practices of the Depositary, its nominee or any of its
direct or indirect participants. None of the Issuers, any Subsidiary Guarantors, the Trustee or any such agent will be liable for any delay by the Depositary, its nominee, or any of its direct or
indirect participants in identifying the beneficial owners of the Debt Securities, and the Issuers, any Subsidiary Guarantors and the Trustee may conclusively rely on, and will be protected in relying
on, instructions from the Depositary or its nominee for all purposes (including with respect to the registration and delivery, and the respective principal amounts, of the Debt Securities to be
issued). 

        Section 2.16    Medium Term Securities.    Notwithstanding any contrary provision herein, if all Debt
Securities of a series are not to be originally issued at one time, it shall not be necessary for each of the Issuers to deliver to the Trustee an Officers' Certificate, resolutions of each such
Issuer's Board of Directors, supplemental Indenture, Opinion of Counsel or written order or any other document otherwise required pursuant to Section 2.01, 2.03, 2.05 or 13.05 at or prior to
the time of authentication of each Debt Security of such series if such documents are delivered to the Trustee or its agent at or prior to the authentication upon original issuance of the first such
Debt Security of such series to be issued; provided, that any subsequent request by the Issuers to the Trustee to authenticate Debt Securities of such series upon original issuance shall constitute a
representation and warranty by the Issuers that, as of the date of such request, the statements made in the Officers' Certificate delivered pursuant to Section 2.05 or 13.05 shall be true and
correct as if made on such date and that the Opinion of Counsel delivered at or prior to such time of authentication of an original issuance of Debt Securities shall specifically state that it shall
relate to all subsequent issuances of Debt Securities of such series that are identical to the Debt Securities issued in the first issuance of Debt Securities of such series. 

15

 

        An
Issuer Order delivered by the Issuers to the Trustee in the circumstances set forth in the preceding paragraph, may provide that Debt Securities which are the subject thereof will be
authenticated and delivered by the Trustee or its agent on original issue from time to time upon the telephonic or written order of Persons designated in such written order (any such telephonic
instructions to be promptly confirmed in writing by such Person) and that such Persons are authorized to determine, consistent with the Officers' Certificate, supplemental Indenture or resolution of
the Board of Directors relating to such written order, such terms and conditions of such Debt Securities as are specified in such Officers' Certificate, supplemental Indenture or such resolution. 

        Section 2.17    Defaulted Interest.    Any interest on any Debt Security of a particular series which is
payable, but is not punctually paid or duly provided for, on the dates and in the manner provided in the Debt Securities of such series and in this Indenture (herein called "Defaulted Interest") shall
forthwith cease to be payable to the Holder thereof on the relevant record date by virtue of having been such Holder, and such Defaulted Interest may be paid by the Issuers, at their election in each
case, as provided in clause (i) or (ii) below: 

          (i)  The
Issuers may elect to make payment of any Defaulted Interest to the Persons in whose names the Debt Securities of such series 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 Issuers shall notify the Trustee in writing of the amount of Defaulted Interest
proposed to be paid on each such Debt Security of such series and the date of the proposed payment, and at the same time the Issuers 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 in this clause provided. Thereupon the
Trustee shall fix a special record date for the payment of such Defaulted Interest which shall be not more than 15 days and not 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 Issuers of such special record date and, in the
name and at the expense of the Issuers, shall cause notice of the proposed payment of such Defaulted Interest and the special record date therefor to be mailed, first class postage
pre-paid, to each Holder thereof at its address as it appears in the Debt Security Register, not less than 10 days prior to such special record date. Notice of the proposed payment
of such Defaulted Interest and the special record date therefor having been so mailed, such Defaulted Interest shall be paid to the Persons in whose names the Debt Securities of such series are
registered at the close of business on such special record date. 

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

        Section 2.18    CUSIP Numbers.    The Issuers in issuing the Debt Securities may use "CUSIP" numbers (if then
generally in use), and, if so, the Trustee shall use "CUSIP" numbers in notices of redemption as a convenience to Holders; provided that any such notice may state that no representation is made as to
the accuracy of such numbers either as printed on the Debt 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 Debt Securities, and any such redemption shall not be affected by any defect in or omission of such numbers. The Issuers will promptly notify the Trustee in writing of any change in the "CUSIP"
numbers. 

16

 
 
 

  ARTICLE III
  REDEMPTION OF DEBT SECURITIES    
    

        Section 3.01    Applicability of Article.    The provisions of this Article shall be applicable to the Debt
Securities of any series which are redeemable before their Stated Maturity except as otherwise specified as contemplated by Section 2.03 for Debt Securities of such series. 

        Section 3.02    Notice of Redemption; Selection of Debt Securities.    In case the Issuers shall desire to
exercise the right to redeem all or, as the case may be, any part of the Debt Securities of any series in accordance with their terms, by resolution of the Board of Directors of each Issuer or a
supplemental Indenture, the Issuers shall fix a date for redemption and shall give notice of such redemption at least 30 and not more than 60 days prior to the date fixed for redemption to the
Holders of Debt Securities of such series so to be redeemed as a whole or in part, in the manner provided in Section 13.03. The notice if given in the manner herein provided shall be
conclusively presumed to have been duly given, whether or not the Holder receives such notice. In any case, failure to give such notice or any defect in the notice to the Holder of any Debt Security
of a series designated for redemption as a whole or in part shall not affect the validity of the proceedings for the redemption of any other Debt Security of such series. 

        Each
such notice of redemption shall specify (i) the date fixed for redemption, (ii) the redemption price at which Debt Securities of such series are to be redeemed (or the
method of calculating such redemption price), (iii) the Place or Places of Payment that payment will be made upon presentation and surrender of such Debt Securities, (iv) that any
interest accrued to the date fixed for redemption will be paid as specified in said notice, (v) that the redemption is for a sinking fund payment (if applicable), (vi) that, unless
otherwise specified in such notice, if the Issuers default in making such redemption payment the paying agent is prohibited from making such payment pursuant to the terms of this Indenture,
(vii) that on and after said date any interest thereon or on the portions thereof to be redeemed will cease to accrue, (viii) that in the case of Original Issue Discount Securities
original issue discount accrued after the date fixed for redemption will cease to accrue, (ix) the terms of the Debt Securities of that series pursuant to which the Debt Securities of that
series are being redeemed and (x) that no representation is made as to the correctness or accuracy of the CUSIP number, if any, listed in such notice or printed on the Debt Securities of that
series. If less than all the Debt Securities of a series are to be redeemed the notice of redemption shall specify the certificate numbers of any Debt Securities of that series to be redeemed that are
not in global form. In case any Debt Security of a series is to be redeemed in part only, the notice of redemption shall state the portion of the principal amount thereof to be redeemed and shall
state that on and after the date fixed for redemption, upon surrender of such Debt Security, a new Debt Security or Debt Securities of that series in principal amount equal to the unredeemed portion
thereof, will be issued. 

        At
least five days before the giving of any notice of redemption, unless the Trustee consents to a shorter period, the Issuers shall give written notice to the Trustee of the Redemption
Date, the principal amount of Debt Securities to be redeemed and the series and terms of the Debt Securities pursuant to which such redemption will occur. Such notice shall be accompanied by an
Officers' Certificate and an Opinion of Counsel from the Issuers to the effect that such redemption will comply with the conditions herein, and such notice may be revoked at any time prior to the
giving of a notice of redemption to the Holders pursuant to this Section 3.02. If fewer than all the Debt Securities of a series are to be redeemed, the record date relating to such redemption
shall be selected by the Issuers and given in writing to the Trustee, which record date shall be not less than three days after the date of notice to the Trustee. 

        By
11 a.m., New York City time, on the Redemption Date for any Debt Securities, the Issuers shall deposit with the Trustee or with a paying agent (or, if an Issuer is acting as
its own paying agent, segregate and hold in trust) an amount of money in Dollars (except as provided pursuant to 

17

 

Section 2.03)
sufficient to pay the redemption price of such Debt Securities or any portions thereof that are to be redeemed on that date, together with any interest accrued to the Redemption
Date. 

        If
less than all the Debt Securities of like tenor and terms of a series are to be redeemed (other than pursuant to mandatory sinking fund redemptions), the Trustee shall select, on a
pro rata basis, by lot or by such other method as in its sole discretion it shall deem appropriate and fair, the Debt Securities of that series or portions thereof (in multiples of $1,000) to be
redeemed. In any case where more than one Debt Security of such series is registered in the same name, the Trustee in its discretion may treat the aggregate principal amount so registered as if it
were represented by one Debt Security of such series. The Trustee shall promptly notify the Issuers in writing of the Debt Securities selected for redemption and, in the case of any Debt Securities
selected for partial redemption, the principal amount thereof to be redeemed. If any Debt Security called for redemption shall not be so paid upon surrender thereof on such Redemption Date, the
principal, premium, if any, and interest shall bear interest until paid from the Redemption Date at the rate borne by the Debt Securities of that series. If less than all the Debt Securities of unlike
tenor and terms of a series are to be redeemed, the particular Debt Securities to be redeemed shall be selected by the Issuers. Provisions of this Indenture that apply to Debt Securities called for
redemption also apply to portions of Debt Securities called for redemption. 

        Section 3.03    Payment of Debt Securities Called for Redemption.    If notice of redemption has been given as
provided in Section 3.02, the Debt Securities or portions of Debt Securities of the series with respect to which such notice has been given shall become due and payable on the date and at the
Place or Places of Payment stated in such notice at the applicable redemption price, together with any interest accrued to the date fixed for redemption, and on and after said date (unless the Issuers
shall default in the payment of such Debt Securities at the applicable redemption price, together with any interest accrued to said date) any interest on the Debt Securities or portions of Debt
Securities of any series so called for redemption shall cease to accrue, and any original issue discount in the case of Original Issue Discount Securities shall cease to accrue. On presentation and
surrender of such Debt Securities at the Place or Places of Payment in said notice specified, the said Debt Securities or the specified portions thereof shall be paid and redeemed by the Issuers at
the applicable redemption price, together with any interest accrued thereon to the date fixed for redemption. 

        Any
Debt Security that is to be redeemed only in part shall be surrendered at the Place of Payment with, if the Issuers, the Registrar or the Trustee so requires, due endorsement by, or
a written instrument of transfer in form satisfactory to the Issuers, the Registrar and the Trustee duly executed by, the Holder thereof or his attorney duly authorized in writing, and the Issuers
shall execute, and the Trustee shall authenticate and deliver to the Holder of such Debt Security without service charge, a new Debt Security or Debt Securities of the same series, of like tenor and
form, of any authorized denomination as requested by such Holder in aggregate principal amount equal to and in exchange for the unredeemed portion of the principal of the Debt Security so surrendered;
except that if a Global
Security is so surrendered, the Issuers shall execute, and the Trustee shall authenticate and deliver to the Depositary for such Global Security, without service charge, a new Global Security in a
denomination equal to and in exchange for the unredeemed portion of the principal of the Global Security so surrendered. In the case of a Debt Security providing appropriate space for such notation,
at the option of the Holder thereof, the Trustee, in lieu of delivering a new Debt Security or Debt Securities as aforesaid, may make a notation on such Debt Security of the payment of the redeemed
portion thereof. 

        Section 3.04    Mandatory and Optional Sinking Funds.    The minimum amount of any sinking fund payment
provided for by the terms of Debt Securities of any series, resolution of the Board of Directors or a supplemental Indenture is herein referred to as a "mandatory sinking fund payment," and any
payment in excess of such minimum amount provided for by the terms of Debt Securities of any series, resolution of the Board of Directors or a supplemental Indenture is herein referred to as an
"optional sinking fund payment." 

18

 

 

        In lieu of making all or any part of any mandatory sinking fund payment with respect to any Debt Securities of a series in cash, the Issuers may at their option (a) deliver to the
Trustee Debt Securities of that series theretofore purchased or otherwise acquired by the Issuers or (b) receive credit for the principal amount of Debt Securities of that series which have
been redeemed either at the election of the Issuers pursuant to the terms of such Debt Securities or through the application of permitted optional sinking fund payments pursuant to the terms of such
Debt Securities, resolution or supplemental Indenture; provided, that such Debt Securities have not been previously so credited. Such Debt Securities shall be received and credited for such purpose by
the Trustee at the redemption price specified in such Debt Securities, resolution or supplemental Indenture for redemption through operation of the sinking fund and the amount of such mandatory
sinking fund payment shall be reduced accordingly. 

        Section 3.05    Redemption of Debt Securities for Sinking Fund.    Not less than 60 days prior to each
sinking fund payment date for any series of Debt Securities, the Issuers will deliver to the Trustee an Officers' Certificate specifying the amount of the next ensuing sinking fund payment for that
series pursuant to the terms of that series, any resolution or supplemental Indenture, the portion thereof, if any, which is to be satisfied by payment of cash and the portion thereof, if any, which
is to be satisfied by delivering and crediting Debt Securities of that series pursuant to this Section 3.05 (which Debt Securities, if not previously redeemed, will accompany such certificate)
and whether the Issuers intend to exercise its right to make any permitted optional sinking fund payment with respect to such series. Such certificate shall also state that no Event of Default has
occurred and is continuing with respect to such series. Such certificate shall be irrevocable and upon its delivery the Issuers shall be obligated to make the cash payment or payments therein referred
to, if any, by 11 a.m., New York City time, on the next succeeding sinking fund payment date. Failure of the Issuers to deliver such certificate (or to deliver the Debt Securities specified in
this paragraph) shall not constitute a Default, but such failure shall require that the sinking fund payment due on the next succeeding sinking fund payment date for that series shall be paid entirely
in cash and shall be sufficient to redeem the principal amount of such Debt Securities subject to a mandatory sinking fund payment without the option to deliver or credit Debt Securities as provided
in this Section 3.05 and without the right to make any optional sinking fund payment, if any, with respect to such series. 

        Any
sinking fund payment or payments (mandatory or optional) made in cash plus any unused balance of any preceding sinking fund payments made in cash which shall equal or exceed $100,000
(or a lesser sum if the Issuers shall so request) with respect to the Debt Securities of any particular series shall be applied by the Trustee on the sinking fund payment date on which such payment is
made (or, if such payment is made before a sinking fund payment date, on the sinking fund payment date following the date of such payment) to the redemption of such Debt Securities at the redemption
price specified in such Debt Securities, resolution or supplemental Indenture for operation of the sinking fund together with any accrued interest to the date fixed for redemption. Any sinking fund
moneys not so applied or allocated by the Trustee to the redemption of Debt Securities shall be added to the next cash sinking fund payment received by the Trustee for such series and, together with
such payment, shall be applied in accordance with the provisions of this Section 3.05. Any and all sinking fund moneys with respect to the Debt Securities of any particular series held by the
Trustee on the last sinking fund payment date with respect to Debt Securities of such series and not held for the payment or redemption of particular Debt Securities 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 Debt Securities of that series at its Stated Maturity. 

        The
Trustee shall select the Debt Securities to be redeemed upon such sinking fund payment date in the manner specified in the last paragraph of Section 3.02 and the Issuers shall
cause notice of the redemption thereof to be given in the manner provided in Section 3.02 except that the notice of redemption shall also state that the Debt Securities are being redeemed by
operation of the sinking 

19

 

fund.
Such notice having been duly given, the redemption of such Debt Securities shall be made upon the terms and in the manner stated in Section 3.03. 

        The
Trustee shall not redeem any Debt Securities of a series with sinking fund moneys or mail any notice of redemption of such Debt Securities by operation of the sinking fund for such
series during the continuance of a Default in payment of interest on such Debt Securities or of any Event of Default (other than an Event of Default occurring as a consequence of this paragraph) with
respect to such Debt Securities, except that if the notice of redemption of any such Debt Securities shall theretofore have been mailed in accordance with the provisions hereof, the Trustee shall
redeem such Debt Securities if cash sufficient for that purpose shall be deposited with the Trustee for that purpose in accordance with the terms of this Article III. Except as aforesaid, any
moneys in the sinking fund for such series at the time when any such Default or Event of Default shall occur and any moneys thereafter paid into such sinking fund shall, during the continuance of such
Default or Event of Default, be held as security for the payment of such Debt Securities; provided, however, that in case such Default or Event of Default shall have been cured or waived as provided
herein, such moneys shall thereafter be applied on the next sinking fund payment date for such Debt Securities on which such moneys may be applied pursuant to the provisions of this
Section 3.05. 

 
 

  ARTICLE IV
  PARTICULAR COVENANTS OF THE ISSUERS    
    

        Section 4.01    Payment of Principal of, and Premium, If Any, and Interest on, Debt Securities.    The Issuers,
for the benefit of each series of Debt Securities, will duly and punctually pay or cause to be paid the principal of, and premium, if any, and interest on, each of the Debt Securities at the place, at
the respective times and in the manner provided herein or in the Debt Securities. Each installment of interest on any Debt Securities not in global form may at the Issuers' option be paid by mailing
checks for such interest payable to the Person entitled thereto pursuant to Section 2.07(a) to the address of such Person as it appears on the Debt Security Register. 

        Principal
of and premium and interest on Debt Securities of any series shall be considered paid on the date due if, by 11 a.m., New York City time, on such date the Trustee or any
paying agent holds in accordance with this Indenture money sufficient to pay all principal, premium and interest then due. 

        The
Issuers shall pay interest on overdue principal or premium, if any, at the rate specified therefor in the Debt Securities, and it shall pay interest on overdue installments of
interest at the same rate to the extent lawful. 

        Section 4.02    Maintenance of Offices or Agencies for Registration of Transfer, Exchange and Payment of Debt
Securities.    The Issuers will maintain in each Place of Payment for any series of Debt Securities an office or agency where Debt Securities of such series may be
presented or surrendered for payment, and it shall also maintain (in or outside such Place of Payment) an office or agency where Debt Securities of such series may be surrendered for transfer or
exchange and where notices and demands to or upon the Issuers in respect of the Debt Securities of such series and this Indenture may be served. The Issuers will give prompt written notice to the
Trustee of the location, and any change in the location, of such office or agency. If at any time the Issuers shall fail to maintain any such required office or agency or shall fail to furnish the
Trustee with the address thereof, such presentations, surrenders, notices and demands may be made or served at the office of the Trustee where its corporate trust business is principally administered
in the United States, and the Issuers hereby appoint the Trustee as their agent to receive all presentations, surrenders, notices and demands. 

        The
Issuers may also from time to time designate different or additional offices or agencies to be maintained for such purposes (in or outside of such Place of Payment), and may from
time to time rescind any such designation; provided, however, that no such designation or rescission shall in any 

20

 

manner
relieve the Issuers of their obligations described in the preceding paragraph. The Issuers will give prompt written notice to the Trustee of any such additional designation or rescission of
designation and any change in the location of any such different or additional office or agency. 

        Section 4.03    Appointment to Fill a Vacancy in the Office of Trustee.    The Issuers, whenever necessary to
avoid or fill a vacancy in the office of Trustee, will appoint, in the manner provided in Section 7.08, a Trustee, so that there shall at all times be a Trustee hereunder with respect to each
series of Debt Securities. 

        Section 4.04    Duties of Paying Agents, etc.    

        (a)   The
Issuers shall cause each paying agent, if any, other than the Trustee, to execute and deliver to the Trustee an instrument in which such agent shall agree with the
Trustee, subject to the provisions of this Section 4.04, 

          (i)  that
it will hold all sums held by it as such agent for the payment of the principal of, and premium, if any, or interest on, the Debt Securities of any series (whether
such sums have been paid to it by the Issuers or by any other obligor on the Debt Securities of such series) in trust for the benefit of the Holders of the Debt Securities of such series; 

         (ii)  that
it will give the Trustee notice of any failure by the Issuers (or by any other obligor on the Debt Securities of such series) to make any payment of the principal
of, and premium, if any, or interest on, the Debt Securities of such series when the same shall be due and payable; and 

        (iii)  that
it will at any time during the continuance of an Event of Default, upon the written request of the Trustee, forthwith pay to the Trustee all sums so held by it as
such agent. 

        (b)   If
either of the Issuers shall act as its own paying agent, it will, on or before each due date of the principal of, and premium, if any, or interest on, the Debt
Securities of any series, set aside, segregate and hold in trust for the benefit of the Holders of the Debt Securities of such series a sum sufficient to pay such principal, premium, if any, or
interest so becoming due. The Issuers will promptly notify the Trustee of any failure by either of the Issuers to take such action or the failure by any other obligor on such Debt Securities to make
any payment of the principal of, and premium, if any, or interest on, such Debt Securities when the same shall be due and payable. 

        (c)   Anything
in this Section 4.04 to the contrary notwithstanding, either of the Issuers may, at any time, for the purpose of obtaining a satisfaction and discharge
of this Indenture, or for any other reason, pay or cause to be paid to the Trustee all sums held in trust by it or any paying agent, as required by this Section 4.04, such sums to be held by
the Trustee upon the same trusts as those upon which such sums were held by such Issuer or such paying agent. 

        (d)   Whenever
the Issuers shall have one or more paying agents with respect to any series of Debt Securities, they will, prior to each due date of the principal of, and
premium, if any, or interest on, any Debt Securities of such series, deposit with any such paying agent a sum sufficient to pay the principal, premium or interest so becoming due, such sum to be held
in trust for the benefit of the Persons entitled thereto, and (unless any such paying agent is the Trustee) the Issuers will promptly notify the Trustee of its action or failure so to act. 

        (e)   Anything
in this Section 4.04 to the contrary notwithstanding, the agreement to hold sums in trust as provided in this Section 4.04 is subject to the
provisions of Section 11.05. 

        Section 4.05    SEC Reports; Financial Statements.    

        (a)   The
Partnership shall, so long as any of the Debt Securities are Outstanding, file with the Trustee, within 30 days after it files the same with the SEC, copies
of the annual reports and the information, documents and other reports (or copies of such portions of any of the foregoing as the SEC may by rules and regulations prescribe) that the Partnership is
required to file with the 

21

 

SEC pursuant
to Section 13 or 15(d) of the Exchange Act. If the Partnership is not subject to the requirements of such Section 13 or 15(d), the Partnership shall file with the
Trustee, within 30 days after it would have been required to file the same with the SEC, financial statements, including any notes thereto (and with respect to annual reports, an auditors'
report by a firm of established national reputation), and a "Management's Discussion and Analysis of Financial Condition and Results of Operations," both comparable to that which the Partnership would
have been required to include in such annual reports, information, documents or other reports if the Partnership had been subject to the requirements of such Section 13 or 15 (d). The Issuers
shall also comply with the provisions of TIA Section 314 (a). 

        (b)   The
Partnership shall provide the Trustee with a sufficient number of copies of all reports and other documents and information that the Trustee may be required to
deliver to Holders under this Section. 

        (c)   The
Partnership shall, so long as any of the Notes are Outstanding, deliver to the Trustee, within 30 days of any Officer of the Partnership becoming aware of the
occurrence of any Event of Default, an Officers' Certificate specifying such Event of Default and what action the Partnership is taking or proposes to take with respect thereto. 

        Section 4.06    Compliance Certificate.    

        (a)   Each
of the Issuers and any Subsidiary Guarantor shall, so long as any of the Debt Securities are Outstanding, deliver to the Trustee, within 120 days after the
end of each fiscal year of the Partnership, an Officers' Certificate stating that a review of the activities of the Partnership and its Subsidiaries during the preceding fiscal year has been made
under the supervision of the Officers signing the certificate with a view to determining whether each of the Issuers and any Subsidiary Guarantor has kept, observed, performed and fulfilled its
obligations under this Indenture, and further stating, as to each such Officer signing such certificate, that to the best of his knowledge each of the Issuers and any Subsidiary Guarantor has kept,
observed, performed and fulfilled each and every covenant contained in this Indenture and is not in default in the performance or observance of any of the terms, provisions and conditions hereof,
without regard to any grace period or requirement of notice required by this Indenture (or, if a Default or Event of Default shall have occurred, describing all such Defaults or Events of Default of
which such Officer may have knowledge and what action the Issuers or any Subsidiary Guarantor is taking or proposes to take with respect thereto). 

        (b)   The
Partnership shall, so long as any of the Debt Securities are Outstanding, deliver to the Trustee within 30 days after the occurrence of any Default or Event
of Default under this Indenture, an Officers' Certificate specifying such Default or Event of Default, the status thereof and what action the Partnership is taking or proposes to take with respect
thereto. 

        Section 4.07    Further Instruments and Acts.    The Partnership will, upon request of the Trustee, execute and
deliver such further instruments and do such further acts as may reasonably be necessary or proper to carry out more effectually the purposes of this Indenture. 

        Section 4.08    Existence.    Except as permitted by Article X hereof, the Partnership shall do or cause
to be done all things necessary to preserve and keep in full force and effect its existence and all rights (charter and statutory) and franchises of the Partnership, provided that the Partnership
shall not be required to preserve any such right or franchise, if its Board of Directors shall determine that the preservation thereof is no longer desirable in the conduct of the business of the
Partnership. 

        Section 4.09    Maintenance of Properties.    The Partnership shall cause all properties owned by the
Partnership or any of its Subsidiaries or used or held for use in the conduct of its business or the business of any such Subsidiary to be maintained and kept in good condition, repair and working
order (reasonable wear and tear excepted) and supplied with all necessary equipment and will cause to be made all necessary repairs, renewals, replacements, betterments and improvements thereof, all
as in the 

22

 

judgment
of the Partnership may be necessary so that the business carried on in connection therewith may be properly and advantageously conducted at all times; provided that nothing in this Section
shall prevent the Partnership from discontinuing the operation or maintenance of any of such properties if such discontinuance is, in the judgment of the Partnership, desirable in the conduct of its
business or the business of any such Subsidiary and not disadvantageous in any material respect to the Holders. 

        Section 4.10    Payment of Taxes and Other Claims.    The Partnership shall pay or discharge or cause to be
paid or discharged, before the same shall become delinquent, (i) all taxes, assessments and governmental charges levied or imposed upon the Partnership or any of its Subsidiaries or upon the
income, profits or property of the Partnership or any of its Subsidiaries, and (ii) all lawful claims for labor, materials and supplies which, if unpaid, might by law become a Lien upon the
property of the Partnership or any of its Subsidiaries; provided that the Partnership shall not be required to pay or discharge or cause to be paid or discharged any such tax, assessment, charge or
claim whose amount, applicability or validity is being contested in good faith by appropriate proceedings. 

        Section 4.11    Waiver of Certain Covenants.    The Issuers and the Subsidiary Guarantors may, with respect to
the Debt Securities of any series, omit in any particular instance to comply with any covenant set forth in this Article IV (except Sections 4.01 through 4.08) or made applicable to such
Debt Securities pursuant to Section 2.03, if, before or after the time for such compliance, the Holders of at least a majority in principal amount of the Outstanding Debt Securities of each
series affected, waive such compliance in such instance with such covenant, but no such waiver shall extend to or affect such covenant except to the extent so expressly waived, and, until such waiver
shall become effective, the obligations of the Issuers and the Subsidiary Guarantors and the duties of the Trustee in respect of any such covenant shall remain in full force and effect. 

 
 

  ARTICLE V
  HOLDERS' LISTS AND REPORTS BY THE TRUSTEE    
    

        Section 5.01    Issuers to Furnish Trustee Information as to Names and Addresses of Holders; Preservation of
Information.    The Issuers covenant and agree that they will furnish or cause to be furnished to the Trustee with respect to the Debt Securities of each series: 

        (a)   not
more than 10 days after each record date with respect to the payment of interest, if any, a list, in such form as the Trustee may reasonably require, of the
names and addresses of the Holders as of such record date, and 

        (b)   at
such other times as the Trustee may request in writing, within 30 days after the receipt by the Issuers of any such request, a list of similar form and
contents as of a date not more than 15 days prior to the time such list is furnished; 

provided,
however, that so long as the Trustee shall be the Registrar, such lists shall not be required to be furnished. 

        The
Trustee shall preserve, in as current a form as is reasonably practicable, all information as to the names and addresses of the Holders (i) contained in the most recent list
furnished to it as provided in this Section 5.01 or (ii) received by it in the capacity of paying agent or Registrar (if so acting) hereunder. 

        The
Trustee may destroy any list furnished to it as provided in this Section 5.01 upon receipt of a new list so furnished. 

        Section 5.02    Communications to Holders.    Holders may communicate pursuant to Section 312(b) of the
TIA with other Holders with respect to their rights under this Indenture or the Debt Securities. The Issuers, the Trustee, the Registrar and anyone else shall have the protection of
Section 312(c) of the TIA. 

23

 

        Section 5.03    Reports by Trustee.    Within 60 days after each January 31, beginning with the
first January 31 following the date of this Indenture, and in any event on or before April 1 in each year, the Trustee shall mail to Holders a brief report dated as of such
January 31 that complies with TIA Section 313 (a); provided, however, that if no event described in TIA Section 313 (a) has occurred within the twelve months preceding the
reporting date, no report need be transmitted. The Trustee also shall comply with TIA Section 313 (b). 

        Reports
pursuant to this Section 5.03 shall be transmitted by mail: 

        (a)   to
all Holders, as the names and addresses of such Holders appear in the Debt Security Register; and 

        (b)   except
in the cases of reports under Section 313(b)(2) of the TIA, to each Holder of a Debt Security of any series whose name and address appear in the
information preserved at the time by the Trustee in accordance with Section 5.01. 

        A
copy of each report at the time of its mailing to Holders shall be filed with the Securities and Exchange Commission and each stock exchange (if any) on which the Debt Securities of
any series are listed. The Issuers agree to notify promptly the Trustee whenever the Debt Securities of any series become listed on any stock exchange and of any delisting thereof. 

        Section 5.04    Record Dates for Action by Holders.    If the Issuers shall solicit from the Holders of Debt
Securities of any series any action (including the making of any demand or request, the giving of any direction, notice, consent or waiver or the taking of any other action), the Issuers may, at their
option, by resolution of their respective Boards of Directors, fix in advance a record date for the determination of Holders of Debt Securities entitled to take such action, but the Issuers shall have
no obligation to do so. Any such record date shall be fixed at the Issuers' discretion. If such a record date is fixed, such action may be sought or given before or after the record date, but only the
Holders of Debt Securities of record at the close of business on such record date shall be deemed to be Holders of Debt Securities for the purpose of determining whether Holders of the requisite
proportion of Debt Securities of such series Outstanding have authorized or agreed or consented to such action, and for that purpose the Debt Securities of such series Outstanding shall be computed as
of such record date. 

 
 

  ARTICLE VI
  REMEDIES OF THE TRUSTEE AND HOLDERS IN EVENT OF DEFAULT    
    

        Section 6.01    Events of Default.    If any one or more of the following shall have occurred and be continuing
with respect to Debt Securities of any series (each of the following, an "Event of Default"): 

        (a)   default
in the payment of any installment of interest upon any Debt Securities of that series as and when the same shall become due and payable, and continuance of such
default for a period of 30 days; or 

        (b)   default
in the payment of the principal of or premium, if any, on any Debt Securities of that series as and when the same shall become due and payable, whether at Stated
Maturity, upon redemption, by declaration, upon required repurchase or otherwise; or 

        (c)   default
in the payment of any sinking fund payment with respect to any Debt Securities of that series as and when the same shall become due and payable; or 

        (d)   failure
on the part of the Issuers, or if any series of Debt Securities Outstanding under this Indenture is entitled to the benefits of the Guarantee, any of the
Subsidiary Guarantors, duly to observe or perform any other of the covenants or agreements on the part of the Issuers, or if applicable, any of the Subsidiary Guarantors, in the Debt Securities of
that series, in any resolution of the Board of Directors authorizing the issuance of that series of Debt Securities, in this Indenture with 

24

 

respect
to such series or in any supplemental Indenture with respect to such series (other than a covenant a default in the performance of which is elsewhere in this Section specifically dealt with),
continuing for a period of 60 days after the date on which written notice specifying such failure and requiring the Issuers, or if applicable, the Subsidiary Guarantors, to remedy the same
shall have been given to the Issuers, or if applicable, the Subsidiary Guarantors, by the Trustee or to the Issuers, or if applicable, the Subsidiary Guarantors, and the Trustee by the Holders of at
least 25% in aggregate principal amount of the Debt Securities of that series at the time Outstanding; or 

        (e)   either
of the Issuers, or if any series of Debt Securities Outstanding under this Indenture is entitled to the benefits of the Guarantee, any of the Subsidiary
Guarantors, pursuant to or within the meaning of any Bankruptcy Law, 

          (i)  commences
a voluntary case, 

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

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

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

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

          (i)  is
for relief against either of the Issuers, or if any series of Debt Securities Outstanding under this Indenture is entitled to the benefits of the Guarantee, any of
the Subsidiary Guarantors, as debtor in an involuntary case, 

         (ii)  appoints
a Custodian of either of the Issuers, or if any series of Debt Securities Outstanding under this Indenture is entitled to the benefits of the Guarantee, any of
the Subsidiary Guarantors, or a Custodian for all or substantially all of the property of either of the Issuers, or if applicable, any of the Subsidiary Guarantors, or 

        (iii)  orders
the liquidation of either of the Issuers, or if any series of Debt Securities Outstanding under this Indenture is entitled to the benefits of the Guarantee, any
of the Subsidiary Guarantors, 

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

        (g)   if
any series of Debt Securities Outstanding under this Indenture is entitled to the benefits of the Guarantee, the Guarantee of any of the Subsidiary Guarantors ceases
to be in full force and effect with respect to Debt Securities of that series (except as otherwise provided in this Indenture) or is declared null and void in a judicial proceeding or any of the
Subsidiary Guarantors denies or disaffirms its obligations under this Indenture or such Guarantee; or 

        (h)   any
other Event of Default provided with respect to Debt Securities of that series; 

then
and in each and every case that an Event of Default described in clause (a), (b), (c), (d), (g), or (h) with respect to Debt Securities of that series at the time Outstanding occurs
and is continuing, unless the principal of, premium, if any, and accrued and unpaid interest on all the Debt Securities of that series shall have already become due and payable, either the Trustee or
the Holders of not less than 25% in aggregate principal amount of the Debt Securities of that series then Outstanding hereunder, by notice in writing to the Issuers (and to the Trustee if given by
Holders), may declare the principal of (or, if the Debt Securities of that series are Original Issue Discount Debt Securities, such portion of the principal amount as may be specified in the terms of
that series), premium, if any, and interest on all the Debt Securities of that series to be due and payable immediately, and upon any such declaration the same shall become and shall be immediately
due and payable, anything in this Indenture or in the Debt Securities of that series contained to the contrary notwithstanding. If an 

25

 

Event
of Default described in clause (e) or (f) occurs with respect to either of the Issuers, then and in each and every such case, unless the principal of and accrued and unpaid
interest on all the Debt Securities shall have become due and payable, the principal of (or, if the Debt Securities of that series are Original Issue Discount Debt Securities, such portion of the
principal amount as may be specified in the terms thereof), premium, if any, and interest on all the Debt Securities then Outstanding hereunder shall ipso facto become and be immediately due and
payable without any declaration or other act on the part of the Trustee or any Holders, anything in this Indenture or in the Debt Securities contained to the contrary notwithstanding. 

        The
Holders of a majority in aggregate principal amount of the Debt Securities of a particular series by written notice to the Trustee may rescind an acceleration and its consequences if
the rescission would not conflict with any judgment or decree of a court of competent jurisdiction already rendered and if all existing Events of Default with respect to that series have been cured or
waived except nonpayment of principal, premium, if any, or interest that has become due solely because of acceleration. Upon any such rescission, the parties hereto shall be restored respectively to
their several positions and rights hereunder, and all rights, remedies and powers of the parties hereto shall continue as though no such proceeding had been taken. 

        Section 6.02    Collection of Debt by Trustee, etc.    If an Event of Default occurs and is continuing, the
Trustee, in its own name and as trustee of an express trust, shall be entitled and empowered to institute any action or proceedings at law or in equity for the collection of the sums so due and unpaid
or enforce the performance of any provision of the Debt Securities of the affected series or this Indenture, and may prosecute any such action or proceedings to judgment or final decree, and may
enforce any such judgment or final decree against any of the Subsidiary Guarantors or the Issuers or any other obligor upon the Debt Securities of such series (and collect in the manner provided by
law out of the property of any of the Subsidiary Guarantors or the Issuers or any other obligor upon the Debt Securities of such series wherever situated the moneys adjudged or decreed to be payable). 

        In
case there shall be pending proceedings for the bankruptcy or for the reorganization of any of the Subsidiary Guarantors or the Issuers or any other obligor upon the Debt Securities
of any series under any Bankruptcy Law, or in case a Custodian shall have been appointed for its property, or in case of any other similar judicial proceedings relative to any of the Subsidiary
Guarantors or the Issuers or any other obligor
upon the Debt Securities of any series, its creditors or its property, the Trustee, irrespective of whether the principal of Debt Securities of any series 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 pursuant to the provisions of this Section 6.02, shall be entitled and empowered, by
intervention in such proceedings or otherwise, to file and prove a claim or claims for the whole amount of principal, premium, if any, and interest (or, if the Debt Securities of such series are
Original Issue Discount Debt Securities, such portion of the principal amount as may be specified in the terms of such series) owing and unpaid in respect of the Debt Securities of such series, and to
file such other papers or documents as may be necessary or advisable in order to have the claims of the Trustee (including any claim for reasonable compensation to the Trustee, its agents, attorneys
and counsel, and for reimbursement of all expenses and liabilities incurred, and all advances made, by the Trustee except as a result of its negligence or bad faith) and of the Holders thereof allowed
in any such judicial proceedings relative to any of the Subsidiary Guarantors or the Issuers, or any other obligor upon the Debt Securities of such series, its creditors or its property, and to
collect and receive any moneys or other property payable or deliverable on any such claims, and to distribute all amounts received with respect to the claims of such Holders and of the Trustee on
their behalf, and any receiver, assignee or trustee in bankruptcy or reorganization is hereby authorized by each of such Holders to make payments to the Trustee, and, in the event that the Trustee
shall consent to the making of payments directly to such Holders, to pay to the Trustee such amount as shall be sufficient to cover reasonable compensation to the Trustee, its agents, attorneys and
counsel, and all other reasonable expenses and liabilities incurred, and all advances made, by the Trustee except as a result of its negligence or bad faith. 

26

 

        All rights of action and of asserting claims under this Indenture, or under any of the Debt Securities of any series, may be enforced by the Trustee without the possession of any such
Debt Securities, or the production thereof in any trial or other proceedings relative thereto, and any such action or proceedings instituted by the Trustee shall be brought in its own name as trustee
of an express trust, and any recovery of judgment (except for any amounts payable to the Trustee pursuant to Section 7.06) shall be for the ratable benefit of the Holders of all the Debt
Securities in respect of which such action was taken. 

        In
case of an Event of Default hereunder the Trustee may in its discretion proceed to protect and enforce the rights vested in it by this Indenture by such appropriate judicial
proceedings as the Trustee shall deem most effectual to protect and enforce any of such rights, either at law or in equity or in bankruptcy or otherwise, whether for the specific enforcement of any
covenant or agreement contained in this Indenture or in aid of the exercise of any power granted in this Indenture, or to enforce any other legal or equitable right vested in the Trustee by this
Indenture or by law. 

        Section 6.03    Application of Moneys Collected by Trustee.    Any moneys or other property collected by the
Trustee pursuant to Section 6.02 with respect to Debt Securities of any series shall be applied in the order following, at the date or dates fixed by the Trustee for the distribution of such
moneys or other property, upon presentation of the several Debt Securities of such series in respect of which moneys or other property have been collected, and the notation thereon of the payment, if
only partially paid, and upon surrender thereof if fully paid: 

        FIRST:    To
the payment of all money due the Trustee pursuant to Section 7.06; 

        SECOND:    In
case the principal of the Outstanding Debt Securities in respect of which such moneys have been collected shall not have become due, to the payment of interest on
the Debt Securities of such series in the order of the maturity of the installments of such interest, with interest (to the extent that such interest has been collected by the Trustee) upon the
overdue installments of interest at the
rate or Yield to Maturity (in the case of Original Issue Discount Debt Securities) borne by the Debt Securities of such series, such payments to be made ratably to the Persons entitled thereto,
without discrimination or preference; 

        THIRD:    In
case the principal of the Outstanding Debt Securities in respect of which such moneys have been collected shall have become due, by declaration or otherwise, to
the payment of the whole amount then owing and unpaid upon the Debt Securities of such series for principal and premium, if any, and interest, with interest on the overdue principal and premium, if
any, and (to the extent that such interest has been collected by the Trustee) upon overdue installments of interest at the rate or Yield to Maturity (in the case of Original Issue Discount Debt
Securities) borne by the Debt Securities of such series; and, in case such moneys shall be insufficient to pay in full the whole amount so due and unpaid upon the Debt Securities of such series, then
to the payment of such principal and premium, if any, and interest, without preference or priority of principal and premium, if any, over interest, or of interest over principal and premium, if any,
or of any installment of interest over any other installment of interest, or of any Debt Security of such series over any Debt Security of such series, ratably to the aggregate of such principal and
premium, if any, and interest; and 

        FOURTH:    The
remainder, if any, shall be paid to the Subsidiary Guarantors or the Issuers, as applicable, or to whomsoever may be lawfully entitled to receive the same, or as
a court of competent jurisdiction may direct. 

        The
Trustee may fix a record date and payment date for any payment to Holders pursuant to this Section 6.03. At least 15 days before such record date, the Issuers shall
mail to each Holder and the Trustee a notice that states the record date, the payment date and amount to be paid. 

27

 

        Section 6.04    Limitation on Suits by Holders.    No Holder of any Debt Security of any series shall have any
right by virtue or by availing of any provision of this Indenture to institute any action or proceeding at law or in equity or in bankruptcy or otherwise, upon or under or with respect to this
Indenture, or for the appointment of a receiver or trustee, or for any other remedy hereunder, unless such Holder previously shall have given to the Trustee written notice of an Event of Default with
respect to Debt Securities of that same series and of the continuance thereof and unless the Holders of not less than 25% in aggregate principal amount of the Outstanding Debt Securities of that
series shall have made written request upon the Trustee to institute such action or proceedings in respect of such Event of Default in its own name as Trustee hereunder and shall have offered to the
Trustee such reasonable indemnity or security as it may require against the costs, expenses and liabilities to be incurred therein or thereby, and the Trustee, for 60 days after its receipt of
such notice, request and offer of indemnity or security shall have failed to institute any such action or proceedings and no direction inconsistent with such written request shall have been given to
the Trustee pursuant to Section 6.06; it being
understood and intended, and being expressly covenanted by the Holder of every Debt Security with every other Holder and the Trustee, that no one or more Holders shall have any right in any manner
whatever by virtue or by availing of any provision of this Indenture to affect, disturb or prejudice the rights of any Holders, or to obtain or seek to obtain priority over or preference to any other
such Holder, or to enforce any right under this Indenture, except in the manner herein provided and for the equal, ratable and common benefit of all such Holders. For the protection and enforcement of
the provisions of this Section 6.04, each and every Holder and the Trustee shall be entitled to such relief as can be given either at law or in equity. 

        Notwithstanding
any other provision in this Indenture, however, the right of any Holder of any Debt Security to receive payment of the principal of, and premium, if any, and (subject to
Section 2.12) interest on, such Debt Security, on or after the respective due dates expressed in such Debt Security, and to institute suit for the enforcement of any such payment on or after
such respective dates, shall not be impaired or affected without the consent of such Holder. 

        Section 6.05    Remedies Cumulative; Delay or Omission in Exercise of Rights Not a Waiver of Default.    All
powers and remedies given by this Article VI to the Trustee or to the Holders shall, to the extent permitted by law, be deemed cumulative and not exclusive of any thereof or of any other powers
and remedies available to the Trustee or the Holders, by judicial proceedings or otherwise, to enforce the performance or observance of the covenants and agreements contained in this Indenture, and no
delay or omission of the Trustee or of any Holder to exercise any right or power accruing upon any Default occurring and continuing as aforesaid, shall impair any such right or power, or shall be
construed to be a waiver of any such Default or an acquiescence therein; and, subject to the provisions of Section 6.04, every power and remedy given by this Article VI or by law to the
Trustee or to the Holders may be exercised from time to time, and as often as shall be deemed expedient, by the Trustee or by the Holders. 

        Section 6.06    Rights of Holders of Majority in Principal Amount of Debt Securities to Direct Trustee and to Waive
Default.    The Holders of not less than a majority in aggregate principal amount of the Debt Securities of any series at the time Outstanding shall have the right to
direct the time, method and place of conducting any proceeding for any remedy available to the Trustee, or of exercising any right, trust or power conferred on the Trustee, with respect to the Debt
Securities of such series; provided, however, that such direction shall not be otherwise than in accordance with law and the provisions of this Indenture, and that subject to the provisions of
Section 7.01, the Trustee shall have the right to decline to follow any such direction if the Trustee being advised by counsel shall determine that the action so directed may not lawfully be
taken or is inconsistent with any provision of this Indenture, or if the Trustee shall by a responsible officer or officers determine that the action so directed would involve it in personal liability
or would be unduly prejudicial to Holders of Debt Securities of such series not taking part in such direction; and provided, further, however, that nothing 

28

 

in
this Indenture contained shall impair the right of the Trustee to take any action deemed proper by the Trustee and which is not inconsistent with such direction by such Holders. The Holders of not
less than a majority in aggregate principal amount of the Debt Securities of any series at the time Outstanding may on behalf of the Holders of all the Debt Securities of that series waive any past
Default or Event of Default and its consequences for that series, except a Default or Event of Default in the payment of the principal of, and premium, if any, or interest on, any of the Debt
Securities and a Default or Event of Default in respect of a provision that under Section 9.02 cannot be amended without the consent of each Holder affected thereby. In case of any such waiver,
such Default shall cease to exist, any Event of Default arising therefrom shall be deemed to have been cured for every purpose of this Indenture, and the Subsidiary Guarantors, the Issuers, the
Trustee and the Holders of the Debt Securities of that series shall be restored to their former positions and rights hereunder, respectively; but no such waiver shall extend to any subsequent or other
Default or Event of Default or impair any right consequent thereon. 

        Section 6.07    Trustee to Give Notice of Events of Defaults Known to It, but May Withhold Such Notice in Certain
Circumstances.    The Trustee shall, within 90 days after the occurrence of an Event of Default, or if later, within 30 days after the Trustee obtains
actual knowledge of the Event of Default, with respect to a series of Debt Securities give to the Holders thereof, in the manner provided in Section 13.03, notice of all Events of Default with
respect to such series known to the Trustee, unless such Events of Default shall have been cured or waived before the giving of such notice; provided, that, except in the case of an Event of Default
in the payment of the principal of, or premium, if any, or interest on, any of the Debt Securities of such series or in the making of any sinking fund payment with respect to the Debt 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 committee of directors or responsible officers of the
Trustee in good faith determines that the withholding of such notice is in the interests of the Holders thereof. 

        Section 6.08    Requirement of an Undertaking to Pay Costs in Certain Suits under the Indenture or Against the
Trustee.    All parties to this Indenture agree, and each Holder of any Debt 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 in the manner and to the extent provided in the TIA, and that such court may in its discretion assess reasonable costs,
including reasonable attorneys' fees and expenses, 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 6.08 shall not apply to any suit instituted by the Trustee, to any suit instituted by any Holder, or group of Holders, holding in the aggregate more than
25 percent in principal amount of the Outstanding Debt Securities of that series or to any suit instituted by any Holder for the enforcement of the payment of the principal of, or premium, if
any, or interest on, any Debt Security on or after the due date for such payment expressed in such Debt Security. 

 
 

  ARTICLE VII
  CONCERNING THE TRUSTEE    
    

        Section 7.01    Certain Duties and Responsibilities.    The Trustee, prior to the occurrence of an Event of
Default and after the curing or waiving of all Events of Default which may have occurred, undertakes to perform such duties and only such duties as are specifically set forth in this Indenture. In
case an Event of Default has occurred (which has not been cured or waived), the Trustee shall exercise such of the rights and powers vested in it by this Indenture, and use the same degree of care and
skill in their exercise, as a prudent man would exercise or use under the circumstances in the conduct of his own affairs. 

29

 

        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, its own bad faith or its own
willful misconduct, except that: 

        (a)   this
paragraph shall not be construed to limit the effect of the first paragraph of this Section 7.01; 

        (b)   prior
to the occurrence of an Event of Default with respect to the Debt Securities of a series and after the curing or waiving of all Events of Default with respect to
such series which may have occurred: 

          (i)  the
duties and obligations of the Trustee with respect to Debt Securities of any series shall be determined solely by the express provisions of this Indenture, and the
Trustee shall not be liable except for the performance of such duties and obligations with respect to such series as are specifically set forth in this Indenture, and no implied covenants or
obligations with respect to such series shall be read into this Indenture against the Trustee; 

         (ii)  in
the absence of bad faith on the part of the Trustee, the Trustee may conclusively rely, as to the truth of the statements and the correctness of the opinions
expressed therein, upon any 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; but the Trustee shall examine the evidence furnished to it pursuant to Sections 4.05 and 4.06 to determine whether or not such evidence conforms to the requirement of this Indenture; 

        (iii)  the
Trustee shall not be liable for an 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; and 

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

        None
of the provisions of this Indenture shall require the Trustee to expend or risk its own funds or otherwise incur any personal financial liability in the performance of any of its
duties hereunder, or in the exercise of any of its rights or powers, if there shall be reasonable grounds for believing that repayment of such funds or adequate indemnity against such risk or
liability is not reasonably assured to it. 

        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. 

        Section 7.02    Certain Rights of Trustee.    Except as otherwise provided in Section 7.01: 

        (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, note or other paper or document (whether in its original or facsimile form) believed by it to be genuine and to have been signed or presented by
the proper party or parties; 

        (b)   any
request, direction, order or demand of either of the Issuers mentioned herein shall be sufficiently; evidenced by an Issuer Order (unless other evidence in respect
thereof be herein 

30

 

specifically
prescribed); and any resolution of the Board of Directors of an Issuer may be evidenced to the Trustee by a copy thereof certified by its Secretary or an Assistant Secretary; 

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

        (d)   the
Trustee shall be under no obligation to exercise any of the rights or powers vested in it by this Indenture at the request, order or direction of any of the Holders
of Debt Securities of any series pursuant to the provisions of this Indenture, unless such Holders shall have offered to the Trustee reasonable security or indemnity against the costs, expenses and
liabilities which may be incurred therein or thereby; 

        (e)   the
Trustee shall not be liable for any action taken or omitted by it in good faith and reasonably believed by it to be authorized or within the discretion or rights or
powers conferred upon it by this Indenture; 

        (f)    prior
to the occurrence of an Event of Default and after the curing of all Events of Default which may have occurred, 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, approval or other paper or document,
unless requested in writing to do so by the Holders of a majority in aggregate principal amount of the then Outstanding Debt Securities of a series affected by such matter; provided, however, that if
the payment within a reasonable time to the Trustee of the costs, expenses or liabilities likely to be incurred by it in the making of such investigation is not, in the opinion of the Trustee,
reasonably assured to the Trustee by the security afforded to it by the terms of this Indenture, the Trustee may require reasonable indemnity against such costs, expenses or liabilities as a condition
to so proceeding, and the reasonable expense of every such investigation shall be paid by the Issuers or, if paid by the Trustee, shall be repaid by the Issuers upon demand; 

        (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 by it with due care hereunder; and 

        (h)   if
any property other than cash shall at any time be subject to a Lien in favor of the Holders, the Trustee, if and to the extent authorized by a receivership or
bankruptcy court of competent jurisdiction or by the supplemental instrument subjecting such property to such Lien, shall be entitled to make advances for the purpose of preserving such property or of
discharging tax Liens or other prior Liens or encumbrances thereon. 

        Section 7.03    Trustee Not Liable for Recitals in Indenture or in Debt Securities.    The recitals contained
herein, in the Debt Securities (except the Trustee's certificate of authentication) shall be taken as the statements of the Issuers, and the Trustee assumes no responsibility for the correctness of
the same. The Trustee makes no representations as to the validity or sufficiency of this Indenture or of the Debt Securities of any series, except that the Trustee represents that it is duly
authorized to execute and deliver this Indenture, authenticate the Debt Securities and perform its obligations hereunder, and that the statements made by it or to be made by it in a Statement of
Eligibility and Qualification on Form T-1 supplied to the Issuers are true and accurate. The Trustee shall not be accountable for the use or application by the Issuers of any of the
Debt Securities or of the proceeds thereof. 

        Section 7.04    Trustee, Paying Agent or Registrar May Own Debt Securities.    The Trustee or any paying agent
or Registrar, in its individual or any other capacity, may become the owner or pledgee of Debt Securities and subject to the provisions of the TIA relating to conflicts of interest and preferential 

31

 

claims
may otherwise deal with the Issuers with the same rights it would have if it were not Trustee, paying agent or Registrar. 

        Section 7.05    Moneys Received by Trustee to Be Held in Trust.    Subject to the provisions of
Section 11.05, all moneys received by the Trustee shall, until used or applied as herein provided, be held in trust for the purposes for which they were received, but 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 moneys received by it hereunder. So long as no Event of Default shall have occurred
and be continuing, all interest allowed on any such moneys shall be paid from time to time to the Issuers upon an Issuer Order. 

        Section 7.06    Compensation and Reimbursement.    The Issuers covenant and agree to pay in Dollars to the
Trustee from time to time, and the Trustee shall be entitled to, reasonable compensation for all services rendered by it hereunder (which shall not be limited by any provision of law in regard to the
compensation of a trustee of an express trust), and, except as otherwise expressly provided herein, the Issuers will pay or reimburse in Dollars the Trustee upon its request for all reasonable
expenses, disbursements and advances incurred or made by the Trustee in accordance with any of the provisions of this Indenture (including the reasonable compensation and the expenses and
disbursements of its agents, attorneys and counsel and of all Persons not regularly in its employ), including without limitation, Section 6.02, except any such expense, disbursement or advances
as may arise from its negligence, willful misconduct or bad faith. The Issuers also covenant to indemnify in Dollars the Trustee for, and to hold it harmless against, any loss, liability or expense
incurred without negligence, willful misconduct or bad faith on the part of the Trustee, arising out of or in connection with the acceptance or administration of this trust or trusts hereunder,
including the reasonable costs and expenses of defending itself against any claim of liability in connection with the exercise or performance of any of its powers or duties hereunder. The obligations
of the Issuers under this Section 7.06 to compensate and indemnify the Trustee and to pay or reimburse the Trustee for expenses, disbursements and advances shall constitute additional Debt
hereunder and shall survive the satisfaction and discharge of this Indenture. The Issuers and the Holders agree that such additional Debt shall be secured by a Lien prior to that of the Debt
Securities upon all property and funds held or collected by the Trustee, as such, except funds held in trust for the payment of principal of, and premium, if any, or interest on, particular Debt
Securities. 

        When
the Trustee incurs expenses or renders services after an Event of Default specified in Section 6.01(e) or (f) occurs, the expenses and the compensation for the
services are intended to constitute expenses of administration under any Bankruptcy Law. 

        Section 7.07    Right of Trustee to Rely on an Officers' Certificate Where No Other Evidence Specifically
Prescribed.    Except as otherwise provided in Section 7.01, whenever in the administration of the provisions of this Indenture the Trustee shall deem it
necessary or desirable that a matter be proved or established prior to taking or suffering or omitting any action hereunder, such matter (unless other evidence in respect thereof be herein
specifically prescribed) may, in the absence of negligence or bad faith on the part of the Trustee, be deemed to be conclusively proved and established by an Officers' Certificate delivered to the
Trustee and such certificate, in the absence of negligence or bad faith on the part of the Trustee, shall be full warrant to the Trustee for any action taken, suffered or omitted by it under the
provisions of this Indenture upon the faith thereof. 

        Section 7.08    Separate Trustee; Replacement of Trustee.    The Issuers may, but need not, appoint a separate
Trustee for any one or more series of Debt Securities. The Trustee may resign with respect to one or more or all series of Debt Securities at any time by giving notice to the Issuers. The Holders of a
majority in principal amount of the Debt Securities of a particular series may remove the Trustee for 

32

 

such
series and only such series by so notifying the Trustee and may appoint a successor Trustee. The Issuers shall remove the Trustee if: 

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

        (b)   the
Trustee is adjudged bankrupt or insolvent; 

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

        (d)   the
Trustee otherwise becomes incapable of acting. 

        If
the Trustee resigns, is removed by the Issuers or by the Holders of a majority in principal amount of the Debt Securities of a particular series and such Holders do not reasonably
promptly appoint a successor Trustee, or if a vacancy exists in the office of Trustee for any reason (the Trustee in such event being referred to herein as the retiring Trustee), the Issuers shall
promptly appoint a successor Trustee. No resignation or removal of the Trustee and no appointment of a successor Trustee shall become effective until the acceptance of appointment by the successor
Trustee in accordance with the applicable requirements of this Section 7.08. 

        A
successor Trustee shall deliver a written acceptance of its appointment to the retiring Trustee and to the Issuers. Thereupon the resignation or removal of the retiring Trustee shall
become effective, and the successor Trustee shall have all the rights, powers and duties of the Trustee under this Indenture. The successor Trustee shall mail a notice of its succession to Holders of
Debt Securities of each applicable series. The retiring Trustee shall promptly transfer all property held by it as Trustee to the successor Trustee, subject to the Lien provided for in
Section 7.06. 

        If
a successor Trustee does not take office within 60 days after the retiring Trustee gives notice of resignation or is removed, the retiring Trustee or the Holders of 25% in
principal amount of the Debt Securities of any applicable series may petition any court of competent jurisdiction for the appointment of a successor Trustee for the Debt Securities of such series. 

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

        Notwithstanding
the replacement of the Trustee pursuant to this Section 7.08, the Issuers' obligations under Section 7.06 shall continue for the benefit of the retiring
Trustee. 

        In
the case of the appointment hereunder of a separate or successor Trustee with respect to the Debt Securities of one or more series, the Issuers, any retiring Trustee and each
successor or separate Trustee with respect to the Debt Securities of any applicable series shall execute and deliver an Indenture supplemental hereto (i) which shall contain such provisions as
shall be deemed necessary or desirable to confirm that all the rights, powers, trusts and duties of any retiring Trustee with respect to the Debt Securities of any series as to which any such retiring
Trustee is not retiring shall continue to be vested in such retiring Trustee and (ii) that 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 separate, retiring or successor 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. 

        Section 7.09    Successor Trustee by Merger.    If the Trustee consolidates with, merges or converts into, or
transfers all or substantially all its corporate trust business or assets to, another corporation or banking association, the resulting, surviving or transferee corporation or banking association
without any further act shall be the successor Trustee. 

33

 

        In
case at the time such successor or successors to the Trustee by merger, conversion, consolidation or transfer shall succeed to the trusts created by this Indenture any of the Debt
Securities shall have been authenticated but not delivered, any such successor to the Trustee may adopt the certificate of authentication of any predecessor Trustee, and deliver such Debt Securities
so authenticated; and in case at that time any of the Debt Securities shall not have been authenticated, any successor to the Trustee may authenticate such Debt Securities either in the name of any
predecessor hereunder or in the name of the successor to the Trustee; and in all such cases such certificates shall have the full force which it is anywhere in the Debt Securities or in this Indenture
provided that the certificate of the Trustee shall have. 

        Section 7.10    Eligibility; Disqualification.    The Trustee shall at all times satisfy the requirements of
Section 310(a) of the TIA. The Trustee shall have a combined capital and surplus of at least $50,000,000 as set forth in its most recent published annual report of condition. No obligor upon
the Debt Securities of a particular series or Person directly or indirectly controlling, controlled by or under common control with such obligor shall serve as Trustee for the Debt Securities of such
series. The Trustee shall comply with Section 310(b) of the TIA; provided, however, that there shall be excluded from the operation of Section 310(b)(1) of the TIA this Indenture or any
indenture or indentures under which other securities or certificates of interest or participation in other securities of the Issuers are outstanding if the requirements for such exclusion set forth in
Section 310(b)(1) of the TIA are met. 

        Section 7.11    Preferential Collection of Claims Against Issuers.    The Trustee shall comply with
Section 311(a) of the TIA, excluding any creditor relationship listed in Section 311(b) of the TIA. A Trustee who has resigned or been removed shall be subject to Section 311(a)
of the TIA to the extent indicated therein. 

        Section 7.12    Compliance with Tax Laws.    The Trustee hereby agrees to comply with all U.S. Federal income
tax information reporting and withholding requirements applicable to it with respect to payments of premium (if any) and interest on the Debt Securities, whether acting as Trustee, Registrar, paying
agent or otherwise with respect to the Debt Securities. 

 
 

  ARTICLE VIII
  CONCERNING THE HOLDERS    
    

        Section 8.01    Evidence of Action by Holders.    Whenever in this Indenture it is provided that the Holders of
a specified percentage in aggregate principal amount of the Debt Securities of any or all series may take action (including the making of any demand or request, the giving of any direction, notice,
consent or waiver or the taking of any other action) the fact that at the time of taking any such action the Holders of such specified percentage have joined therein may be evidenced (a) by any
instrument or any
number of instruments of similar tenor executed by Holders in Person or by agent or proxy appointed in writing, (b) by the record of the Holders voting in favor thereof at any meeting of
Holders duly called and held in accordance with the provisions of Section 5.02, (c) by a combination of such instrument or instruments and any such record of such a meeting of Holders or
(d) in the case of Debt Securities evidenced by a Global Security, by any electronic transmission or other message, whether or not in written format, that complies with the Depositary's
applicable procedures. 

        Section 8.02    Proof of Execution of Instruments and of Holding of Debt Securities.    Subject to the
provisions of Sections 7.01, 7.02 and 13.09, proof of the execution of any instrument by a Holder or his agent or proxy shall be sufficient if made in accordance with such reasonable rules and
regulations as may be prescribed by the Trustee or in such manner as shall be satisfactory to the Trustee. The ownership of Debt Securities of any series shall be proved by the Debt Security Register
or by a certificate of the Registrar for such series. The Trustee may require such additional proof of any matter referred to in this Section 8.02 as it shall deem necessary. 

34

 

        Section 8.03    Who May Be Deemed Owner of Debt Securities.    Prior to due presentment for registration of
transfer of any Debt Security, the Issuers, the Subsidiary Guarantors, the Trustee, any paying agent and any Registrar may deem and treat the Person in whose name any Debt Security shall be registered
upon the books of the Issuers as the absolute owner of such Debt Security (whether or not such Debt Security shall be overdue and notwithstanding any notation of ownership or other writing thereon)
for the purpose of receiving payment of or on account of the principal of and premium, if any, and (subject to Section 2.12) interest on such Debt Security and for all other purposes, and none
of the Issuers, the Subsidiary Guarantors or the Trustee nor any paying agent nor any Registrar shall be affected by any notice to the contrary; and all such payments so made to any such Holder for
the time being, or upon his order, shall be valid and, to the extent of the sum or sums so paid, effectual to satisfy and discharge the liability for moneys payable upon any such Debt Security. 

        None
of the Issuers, the Subsidiary Guarantors, the Trustee, any paying agent or any Registrar will have any responsibility or liability for any aspect of the records relating to or
payments made on account of beneficial ownership interests in a Global Security or for maintaining, supervising or reviewing any records relating to such beneficial ownership interests. 

        Section 8.04    Instruments Executed by Holders Bind Future Holders.    At any time prior to (but not after)
the evidencing to the Trustee, as provided in Section 8.01, of the taking of any action by the Holders of the percentage in aggregate principal amount of the Debt Securities of any series
specified in this Indenture in connection with such action and subject to the following paragraph, any Holder of a Debt Security which is shown by the evidence to be included in the Debt Securities
the Holders of which have consented to such action may, by filing written notice with the Trustee at its corporate trust office and upon proof of holding as provided in Section 8.02, revoke
such action so far as concerns such Debt
Security. Except as aforesaid any such action taken by the Holder of any Debt Security shall be conclusive and binding upon such Holder and upon all future Holders and owners of such Debt Security and
of any Debt Security issued upon transfer thereof or in exchange or substitution therefor, irrespective of whether or not any notation in regard thereto is made upon such Debt Security or such other
Debt Securities. Any action taken by the Holders of the percentage in aggregate principal amount of the Debt Securities of any series specified in this Indenture in connection with such action shall
be conclusively binding upon the Issuers, the Subsidiary Guarantors, the Trustee and the Holders of all the Debt Securities of such series. 

        The
Issuers may, but shall not be obligated to, fix a record date for the purpose of determining the Holders of Debt Securities entitled to give their consent or take any other action
required or permitted to be taken pursuant to this Indenture. If a record date is fixed, then notwithstanding the immediately preceding paragraph, those Persons who were Holders of Debt Securities at
such record date (or their duly designated proxies), and only those Persons, shall be entitled to give such consent or to revoke any consent previously given or to take any such action, whether or not
such Persons continue to be Holders of Debt Securities after such record date. No such consent shall be valid or effective for more than 120 days after such record date unless the consent of
the Holders of the percentage in aggregate principal amount of the Debt Securities of such series specified in this Indenture shall have been received within such 120-day period. 

35

 

 
 

  ARTICLE IX
  SUPPLEMENTAL INDENTURES    
    

        Section 9.01    Purposes for Which Supplemental Indenture May Be Entered into Without Consent of
Holders.    The Issuers and any Subsidiary Guarantors, when authorized by resolutions of each Issuer's Board of Directors, and the Trustee may from time to time and
at any time, without the consent of Holders, enter into an Indenture or Indentures supplemental hereto (which shall conform to the provisions of the TIA as in force at the date of the execution
thereof) for one or more of the following purposes: 

        (a)   to
evidence the succession pursuant to Article X of another Person to either of the Issuers, or successive successions, and the assumption by the Successor
Company (as defined in Section 10.01) of the covenants, agreements and obligations of its predecessor Issuer in this Indenture and in the Debt Securities; 

        (b)   to
surrender any right or power herein conferred upon the Issuers or the Subsidiary Guarantors, to add to the covenants of the Issuers or the Subsidiary Guarantors such
further covenants, restrictions, conditions or provisions for the protection of the Holders of all or any series of Debt Securities (and if such covenants are to be for the benefit of less than all
series of Debt Securities, stating that such covenants are expressly being included solely for the benefit of such series) as the Board of Directors shall consider to be for the protection of the
Holders of such Debt Securities, and to make the occurrence, or the occurrence and continuance, of a Default in any of such additional covenants, restrictions, conditions or provisions a Default or an
Event of Default permitting the enforcement of all or any of the several remedies provided in this Indenture; provided, that in respect of any such additional covenant, restriction, condition or
provision such supplemental Indenture may provide for a particular period of grace after Default (which period may be shorter or longer than that allowed in the case of other Defaults) or may provide
for an immediate enforcement upon such Default or may limit the remedies available to the Trustee upon such Default or may limit the right of the Holders of a majority in aggregate principal amount of
any or all series of Debt Securities to waive such Default; 

        (c)   to
cure any ambiguity or omission or to correct or supplement any provision contained herein, in any supplemental Indenture or in any Debt Securities of any series that
may be defective or inconsistent with any other provision contained herein, in any supplemental Indenture or in the Debt Securities of such series; to convey, transfer, assign, mortgage or pledge any
property to or with the Trustee, or to make such other provisions in regard to matters or questions arising under this Indenture as shall not adversely affect the interests of any Holders of Debt
Securities of any series; 

        (d)   to
permit the qualification of this Indenture or any Indenture supplemental hereto under the TIA as then in effect, except that nothing herein contained shall permit or
authorize the inclusion in any Indenture supplemental hereto of the provisions referred to in Section 316(a)(2) of the TIA; 

        (e)   to
permit or facilitate the issuance of Debt Securities of any series in uncertificated form; 

        (f)    to
reflect the release of any Subsidiary Guarantor in accordance with Article XIV 

        (g)   to
add Subsidiary Guarantors with respect to any or all of the Debt Securities or to secure any or all of the Debt Securities or the Guarantee; 

        (h)   to
make any change that does not adversely affect the rights hereunder of any Holder; 

        (i)    to
add to, change or eliminate any of the provisions of this Indenture in respect of one or more series of Debt Securities; provided, however, that any such addition,
change or elimination not otherwise permitted under this Section 9.01 shall neither apply to any Debt Security of any series created prior to the execution of such supplemental Indenture and
entitled to the benefit of such 

36

 

provision
nor modify the rights of the Holder of any such Debt Security with respect to such provision or shall become effective only when there is no such Debt Security Outstanding; 

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

        (k)   to
establish the form or terms of Debt Securities of any series as permitted by Sections 2.01 and 2.03. 

        The
Trustee is hereby authorized to join with the Issuers and the Subsidiary Guarantors in the execution of any such supplemental Indenture, to make any further appropriate agreements
and stipulations which may be therein contained and to accept the conveyance, transfer, assignment, mortgage or pledge of any property thereunder, but the Trustee shall not be obligated to enter into
any such supplemental Indenture which affects the Trustee's own rights, duties or immunities under this Indenture or otherwise. 

        Any
supplemental Indenture authorized by the provisions of this Section 9.01 may be executed by the Issuers, the Subsidiary Guarantors and the Trustee without the consent of the
Holders of any of the Debt Securities at the time Outstanding, notwithstanding any of the provisions of Section 9.02. 

        Section 9.02    Modification of Indenture with Consent of Holders of Debt Securities.    Without notice to any
Holder but with the consent (evidenced as provided in Section 8.01) of the Holders of not less than a majority in aggregate principal amount of the Outstanding Debt Securities of each series
affected by such supplemental Indenture (including consents obtained in connection with a tender offer or exchange offer for any such series of Debt Securities), the Issuers and the Subsidiary
Guarantors, when authorized by resolutions of each Issuer's Board of Directors, and the Trustee may from time to time and at any time enter into an Indenture or Indentures supplemental hereto (which
shall conform to the provisions of the TIA as in force at the date of execution thereof) 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 Debt Securities of such series; provided, that no such supplemental Indenture, without
the consent of the Holders of each Debt Security so affected, shall: reduce the percentage in principal amount of Debt Securities of any series whose Holders must consent to an amendment; reduce the
rate of or extend the time for payment of interest on any Debt Security; reduce the principal of or extend the Stated
Maturity of any Debt Security; reduce any premium payable upon the redemption of any Debt Security or change the time at which any Debt Security may or shall be redeemed in accordance with
Article III; make any Debt Security payable in currency other than the Dollar; impair the right of any Holder to receive payment of premium, if any, principal of and interest on such Holder's
Debt Securities on or after the due dates therefor or to institute suit for the enforcement of any payment on or with respect to such Holder's Debt Securities; release any security that may have been
granted in respect of the Debt Securities, other than in accordance with this Indenture; make any change in Section 6.06 or this Section 9.02; or, except as provided in
Section 11.02(b) or Section14.04, release the Subsidiary Guarantors other than as provided in this Indenture or modify the Guarantee in any manner adverse to the Holders. 

        A
supplemental Indenture which changes or eliminates any covenant or other provision of this Indenture which has been expressly included solely for the benefit of one or more particular
series of Debt Securities or which modifies the rights of the Holders of Debt 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 Debt Securities of any other series. 

37

 

        Upon
the request of the Issuers, accompanied by a copy of resolutions of the Board of Directors of each Issuer authorizing the execution of any such supplemental Indenture, and upon the
filing with the Trustee of evidence of the consent of Holders as aforesaid, the Trustee shall join with the Issuers and the Subsidiary Guarantors in the execution of such supplemental Indenture unless
such supplemental Indenture affects the Trustee's own rights, 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. 

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

        After
an amendment under this Section 9.02 requiring the consent of the Holders of any series of Debt Securities becomes effective, the Issuers shall mail to Holders of that
series of Debt Securities of each series affected thereby a notice briefly describing such amendment. The failure to give such notice to any such Holders, or any defect therein, shall not impair or
affect the validity of an amendment under this Section 9.02 with respect to other Holders. 

        Section 9.03    Effect of Supplemental Indentures.    Upon the execution of any supplemental Indenture pursuant
to the provisions of this Article IX, this Indenture shall be and be deemed to be modified and
amended in accordance therewith and the respective rights, limitations of rights, obligations, duties and immunities under this Indenture of the Trustee, the Issuers, the Subsidiary Guarantors and the
Holders shall thereafter be determined, exercised and enforced hereunder subject in all respects to such modifications and amendments, and all the terms and conditions of any such supplemental
Indenture shall be and be deemed to be part of the terms and conditions of this Indenture for any and all purposes. 

        The
Trustee, subject to the provisions of Sections 7.01 and 7.02, may receive an Officers' Certificate and an Opinion of Counsel as conclusive evidence that any such supplemental
Indenture complies with the provisions of this Article IX. 

        Section 9.04    Debt Securities May Bear Notation of Changes by Supplemental Indentures.    Debt Securities of
any series authenticated and delivered after the execution of any supplemental Indenture pursuant to the provisions of this Article IX 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. New Debt Securities of any series so modified as to conform, in the opinion of the Trustee and the Board
of Directors, to any modification of this Indenture contained in any such supplemental Indenture may be prepared and executed by the Issuers, authenticated by the Trustee and delivered in exchange for
the Debt Securities of such series then Outstanding. Failure to make the appropriate notation or to issue a new Debt Security of such series shall not affect the validity of such amendment. 

38

 
 
 

  ARTICLE X
  CONSOLIDATION, MERGER, SALE OR CONVEYANCE    
    

        Section 10.01    Consolidations and Mergers of the Issuers.    Neither of the Issuers may consolidate or
amalgamate with or merge with or into any Person, or sell, convey, transfer, lease or otherwise dispose of all or substantially all its assets to any Person, whether in a single transaction or a
series of related transactions, unless: (a) either (i) such Issuer shall be the surviving Person in the case of a merger or (ii) the resulting, surviving or transferee Person if
other than such Issuer (the "Successor Company"), shall be a partnership, limited liability company or corporation organized and existing under the laws of the United States, any State thereof or the
District of Columbia and the Successor Company shall expressly assume, by an Indenture supplemental hereto, executed and delivered to the Trustee, in form satisfactory to the Trustee, all the
obligations of such Issuer under this Indenture and the Debt
Securities according to their tenor; (b) immediately after giving effect to such transaction or series of transactions (and treating any Debt which becomes an obligation of the Successor
Company or any Subsidiary of such Issuer as a result of such transaction as having been incurred by the Successor Company or such Subsidiary at the time of such transaction or series of transactions),
no Default or Event of Default would occur or be continuing; (c) if such Issuer is not the continuing Person, then each Subsidiary Guarantor, unless it has become the Successor Company, shall
confirm that its Guarantee shall continue to apply to the obligations under the Debt Securities and this Indenture; and (d) the Issuers shall have delivered to the Trustee an Officers'
Certificate and an Opinion of Counsel, each stating that such consolidation, amalgamation, merger or disposition and such supplemental Indenture (if any) comply with this Indenture. 

        Section 10.02    Rights and Duties of Successor Company.    In case of any consolidation, amalgamation or
merger where such Issuer is not the continuing Person, or disposition of all or substantially all of the assets of such Issuer in accordance with Section 10.01, the Successor Company shall
succeed to and be substituted for such Issuer with the same effect as if it had been named herein as the respective party to this Indenture, and the predecessor entity shall be released from all
liabilities and obligations under this Indenture and the Debt Securities, except that no such release will occur in the case of a lease of all or substantially all of such Issuer's assets. The
Successor Company thereupon may cause to be signed, and may issue either in its own name or in the name of such Issuer, any or all the Debt Securities issuable hereunder which theretofore shall not
have been signed by or on behalf of such Issuer and delivered to the Trustee; and, upon the order of the Successor Company, instead of such Issuer, and subject to all the terms, conditions and
limitations in this Indenture prescribed, the Trustee shall authenticate and shall deliver any Debt Securities which previously shall have been signed and delivered by or on behalf of such Issuer to
the Trustee for authentication, and any Debt Securities which the Successor Company thereafter shall cause to be signed and delivered to the Trustee for that purpose. All the Debt Securities so issued
shall in all respects have the same legal rank and benefit under this Indenture as the Debt Securities theretofore or thereafter issued in accordance with the terms of this Indenture as though all
such Debt Securities had been issued at the date of the execution hereof. 

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

 
 

  ARTICLE XI
  SATISFACTION AND DISCHARGE OF
  INDENTURE; DEFEASANCE; UNCLAIMED MONEYS    
    

        Section 11.01    Applicability of Article.    The provisions of this Article XI relating to discharge or
defeasance of Debt Securities shall be applicable to each series of Debt Securities except as otherwise specified pursuant to Section 2.03 for Debt Securities of such series. 

39

 

        Section 11.02    Satisfaction and Discharge of Indenture; Defeasance.    

        (a)   If
at any time the Issuers shall have delivered to the Trustee for cancellation all Debt Securities of any series theretofore authenticated and delivered (other than any
Debt Securities of such series which shall have been destroyed, lost or stolen and which shall have been replaced or paid as provided in Section 2.09 and Debt Securities for whose payment money
has theretofore been deposited in trust and thereafter repaid to the Issuers as provided in Section 11.05) or all Debt Securities of such series not theretofore delivered to the Trustee for
cancellation shall have become due and payable, or are by their terms to become due and payable within one year or are to be called for redemption within one year under arrangements satisfactory to
the Trustee for the giving of notice of redemption, and the Issuers shall deposit with the Trustee as trust funds the entire amount in cash sufficient to pay at final maturity or upon redemption all
Debt Securities of such series not theretofore delivered to the Trustee for cancellation, including principal and premium, if any, and interest due or to become due on such date of maturity or
Redemption Date, as the case may be, and if in either case the Issuers shall also pay or cause to be paid all other sums payable hereunder by the Issuers, then this Indenture shall cease to be of
further effect (except as to any surviving rights of registration of transfer or exchange of such Debt Securities herein expressly provided for) with respect to the Debt Securities of such series, and
the Trustee, on demand of the Issuers accompanied by an Officers' Certificate and an Opinion of Counsel and at the cost and expense of the Issuers, shall execute proper instruments acknowledging
satisfaction of and discharging this Indenture with respect to the Debt Securities of such series. 

        (b)   Subject
to Sections 11.02(c), 11.03 and 11.07, the Issuers at any time may terminate, with respect to Debt Securities of a particular series, all its obligations
under the Debt Securities of such series and this Indenture with respect to the Debt Securities of such series ("legal defeasance option") or the operation of (w) Sections 4.09 and 4.10,
(x) any covenant made applicable to such Debt Securities pursuant to Section 2.03, (y) Sections 6.01(d), (g) and (h) and (z) as they relate to the
Subsidiary Guarantors only, Sections 6.01(e) and (f) ("covenant defeasance option"). If the Issuers exercise either their legal defeasance option or their covenant defeasance option with
respect to Debt Securities of a particular series that are entitled to the benefit of the Guarantee, the Guarantee will terminate with respect to that series of Debt Securities. The Issuers may
exercise their legal defeasance option notwithstanding its prior exercise of its covenant defeasance option. 

        If
the Issuers exercise their legal defeasance option, payment of the Debt Securities of the defeased series may not be accelerated because of an Event of Default. If the Issuers
exercise their covenant defeasance option, payment of the Debt Securities of the defeased series may not be accelerated because of an Event of Default specified in Sections 6.01(d),
(g) and (h) and, with respect to the Subsidiary Guarantors only, Sections 6.01(e) and (f). 

        Upon
satisfaction of the conditions set forth herein and upon request of the Issuers, the Trustee shall acknowledge in writing the discharge of those obligations that the Issuers
terminate. 

        (c)   Notwithstanding
clauses (a) and (b) above, the Issuers' obligations in Sections 2.07, 2.09, 4.02, 4.03, 4.04, the last sentence of 4.05(a), 4.06(a),
5.01, 7.06, 11.05, 11.06 and 11.07 shall survive until the Debt Securities of the defeased series have been paid in full. Thereafter, the Issuers' obligations in Sections 7.06, 11.05 and 11.06
shall survive. 

        Section 11.03    Conditions of Defeasance.    The Issuers may exercise their legal defeasance option or its
covenant defeasance option with respect to Debt Securities of a particular series only if: 

        (a)   the
Issuers irrevocably deposit in trust with the Trustee money or U.S. Government Obligations for the payment of principal of, and premium, if any, and interest on, the
Debt Securities of such series to final maturity or redemption, as the case may be; 

        (b)   the
Issuers deliver to the Trustee a certificate from a nationally recognized firm of independent accountants expressing their opinion that the payments of principal and
interest when due 

40

 

and
without reinvestment on the deposited U.S. Government Obligations plus any deposited money without investment will provide cash at such times and in such amounts as will be sufficient to pay the
principal, premium, if any, and interest when due on all the Debt Securities of such series to final maturity or redemption, as the case may be; 

        (c)   91 days
pass after the deposit is made and during the 91-day period no Default specified in Section 6.01(e) or (f) with respect to the
Issuers occurs which is continuing at the end of the period; 

        (d)   no
Default has occurred and is continuing on the date of such deposit and after giving effect thereto; 

        (e)   the
deposit does not constitute a default under any other agreement binding on the Issuers; 

        (f)    the
Issuers deliver to the Trustee an Opinion of Counsel to the effect that the trust resulting from the deposit does not constitute, or is qualified as, a regulated
investment company under the Investment Company Act of 1940; 

        (g)   in
the event of the legal defeasance option, the Issuers shall have delivered to the Trustee an Opinion of Counsel stating that the Issuers have received from the
Internal Revenue Service a ruling, or since the date of this Indenture there has been a change in the applicable Federal income tax law, in either case to the effect that, and based thereon such
Opinion of Counsel shall confirm that, the Holders of Debt Securities of such series will not recognize income, gain or loss for Federal income tax purposes as a result of such defeasance and will be
subject to Federal income tax on the same amounts, in the same manner and at the same times as would have been the case if such defeasance had not occurred; 

        (h)   in
the event of the covenant defeasance option, the Issuers shall have delivered to the Trustee an Opinion of Counsel to the effect that the Holders of Debt Securities
of such series will not recognize income, gain or loss for Federal income tax purposes as a result of such covenant defeasance and will be subject to Federal income tax on the same amounts, in the
same manner and at the same times as would have been the case if such covenant defeasance had not occurred; and 

        (i)    the
Issuers deliver to the Trustee an Officers' Certificate and an Opinion of Counsel, each stating that all conditions precedent to the defeasance and discharge of the
Debt Securities of such series as contemplated by this Article XI have been complied with. 

        Before
or after a deposit, the Issuers may make arrangements satisfactory to the Trustee for the redemption of Debt Securities of such series at a future date in accordance with
Article III. 

        Section 11.04    Application of Trust Money.    The Trustee shall hold in trust money or U.S. Government
Obligations deposited with it pursuant to this Article XI. It shall apply the deposited money and the money from U.S. Government Obligations through any paying agent and in accordance with this
Indenture to the payment of principal of, and premium, if any, and interest on, the Debt Securities of the defeased series. 

        Section 11.05    Repayment to Issuers.    The Trustee and any paying agent shall promptly turn over to the
Issuers upon request any excess money or securities held by them at any time. 

        Subject
to any applicable abandoned property law, the Trustee and any paying agent shall pay to the Issuers upon request any money held by them for the payment of principal, premium or
interest that remains unclaimed for two years, and, thereafter, Holders entitled to such money must look to the Issuers for payment as general creditors. 

        Section 11.06    Indemnity for U.S. Government Obligations.    The Issuers shall pay and shall indemnify the
Trustee and the Holders against any tax, fee or other charge imposed on or assessed against deposited U.S. Government Obligations or the principal and interest received on such U.S. Government
Obligations. 

41

 

        Section 11.07    Reinstatement.    If the Trustee or any paying agent is unable to apply any money or U.S.
Government Obligations in accordance with this Article XI by reason of any legal proceeding or by reason of any order or judgment of any court or government authority enjoining, restraining or
otherwise prohibiting such application, the Issuers' obligations under this Indenture and the Debt Securities of the defeased series shall be revived and reinstated as though no deposit had occurred
pursuant to this Article XI until such time as the Trustee or any paying agent is permitted to apply all such money or U.S. Government Obligations in accordance with this Article XI. 

 
 

  ARTICLE XII
  [RESERVED]

        This
Article XII has been intentionally omitted. 

 
 

  ARTICLE XIII
  MISCELLANEOUS PROVISIONS    
    

        Section 13.01    Successors and Assigns of Issuers Bound by Indenture.    All the covenants, stipulations,
promises and agreements in this Indenture contained by or in behalf of the Issuers, the Subsidiary Guarantors or the Trustee shall bind their respective successors and assigns, whether so expressed or
not. 

        Section 13.02    Acts of Board, Committee or Officer of Successor Issuer Valid.    Any act or proceeding by any
provision of this Indenture authorized or required to be done or performed by any board, committee or officer of either of the Issuers shall and may be done and performed with like force and effect by
the like board, committee or officer of any Successor Company. 

        Section 13.03    Required Notices or Demands.    Any notice or communication by the Issuers, the Subsidiary
Guarantors or the Trustee to the others is duly given if in writing in the English language and delivered in Person or mailed by registered or certified mail (return receipt requested), telecopier or
overnight air courier guaranteeing next day delivery, to the other's address: 

If
to the Issuers or any Subsidiary Guarantor: 

Global
Partners LP

P.O. Box 9161

800 South Street

Waltham, Massachusetts 02454-9161

Attention: Edward J. Faneuil

Telecopy No. (781) 398-4211 

If
to the Trustee: 

 

 

	
	  

 

         The
Issuers, any Subsidiary Guarantor or the Trustee by notice to the others may designate additional or different addresses for subsequent notices or communications. 

        All
notices and communications shall be deemed to have been duly given: at the time delivered by hand, if personally delivered; five Business Days after being deposited in the mail,
postage prepaid, if mailed; on the first Business Day on or after being sent, if telecopied and the sender receives confirmation of successful transmission; and the next Business Day after timely
delivery to the courier, if sent by overnight air courier guaranteeing next day delivery. 

        Any
notice required or permitted to a Holder by the Issuers, any Subsidiary Guarantor or the Trustee pursuant to the provisions of this Indenture shall be deemed to be properly mailed by
being 

42

 

deposited
postage prepaid in a post office letter box in the United States addressed to such Holder at the address of such Holder as shown on the Debt Security Register. Any report pursuant to
Section 313 of the TIA shall be transmitted in compliance with subsection (c) therein. 

        Notwithstanding
the foregoing, any notice to Holders of Floating Rate Securities regarding the determination of a periodic rate of interest, if such notice is required pursuant to
Section 2.03, shall be sufficiently given if given in the manner specified pursuant to Section 2.03. 

        In
the event of suspension of regular mail service or by reason of any other cause it shall be impracticable to give notice by mail, then such notification as shall be given with the
approval of the Trustee shall constitute sufficient notice for every purpose hereunder. 

        In
the event it shall be impracticable to give notice by publication, then such notification as shall be given with the approval of the Trustee shall constitute sufficient notice for
every purpose hereunder. 

        Failure
to mail a notice or communication to a Holder or any defect in it or any defect in any notice by publication as to a Holder shall not affect the sufficiency of such notice with
respect to other Holders. If a notice or communication is mailed or published in the manner provided above, it is conclusively presumed duly given. 

        Section 13.04    Indenture and Debt Securities to Be Construed in Accordance with the Laws of the State of New
York.    THIS INDENTURE, EACH DEBT SECURITY AND THE GUARANTEE SHALL BE DEEMED TO BE NEW YORK CONTRACTS, AND FOR ALL PURPOSES SHALL BE GOVERNED BY AND CONSTRUED IN
ACCORDANCE WITH THE LAWS OF SAID STATE. 

        Section 13.05    Officers' Certificate and Opinion of Counsel to Be Furnished upon Application or Demand by the
Issuers.    Upon any application or demand by the Issuers to the Trustee to take any action under any of the provisions of this Indenture, each of the Issuers shall
furnish to the Trustee an Officers' Certificate stating that all conditions precedent provided for in this Indenture relating to the proposed action have been complied with and an Opinion of Counsel
stating that, in the opinion of such counsel, all such conditions precedent have been complied with, except that in the case of any such application or demand as to which the furnishing of such
document is specifically required by any provision of this Indenture relating to such particular application or demand, no additional certificate or opinion need be furnished. 

        Each
certificate or opinion provided for in this Indenture and delivered to the Trustee with respect to compliance with a condition or covenant provided for in this Indenture shall
include (a) a statement that the Person making such certificate or opinion has read such covenant or condition, (b) a brief statement as to the nature and scope of the examination or
investigation upon which the statements or opinions contained in such certificate or opinion are based, (c) a statement that, in the opinion of such Person, he has made such examination or
investigation as is necessary to enable him to express an informed opinion as to whether or not such covenant or condition has been complied with and (d) a statement as to whether or not, in
the opinion of such Person, such condition or covenant has been complied with. 

        Section 13.06    Payments Due on Legal Holidays.    In any case where the date of maturity of interest on or
principal of and premium, if any, on the Debt Securities of a series or the date fixed for redemption or repayment of any Debt Security or the making of any sinking fund payment shall not be a
Business Day at any Place of Payment for the Debt Securities of such series, then payment of interest or principal and premium, if any, or the making of such sinking fund payment need not be made on
such date at such Place of Payment, 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 date of maturity or the date fixed for
redemption, and no interest shall accrue for the period after such date. If a record date is not a Business Day, the record date shall not be affected. 

43

 

 

        Section 13.07    Provisions Required by TIA to Control.    If and to the extent that any provision of this
Indenture limits, qualifies or conflicts with another provision included in this Indenture which is required to be included in this Indenture by any of Sections 310 to 318, inclusive, of the
TIA, such required provision shall control. 

        Section 13.08    Computation of Interest on Debt Securities.    Interest, if any, on the Debt Securities shall
be computed on the basis of a 360-day year of twelve 30-day months, except as may otherwise be provided pursuant to Section 2.03. 

        Section 13.09    Rules by Trustee, Paying Agent and Registrar.    The Trustee may make reasonable rules for
action by or a meeting of Holders. The Registrar and any paying agent may make reasonable rules for their functions. 

        Section 13.10    No Recourse Against Others.    The General Partner and its directors, officers, employees and
members, as such, shall have no liability for any obligations of the Subsidiary Guarantors or the Issuers under the Debt Securities, this Indenture or the Guarantee or for any claim based on, in
respect of, or by reason of, such obligations or their creation. By accepting a Debt Security, each Holder shall be deemed to have waived and released all such liability. The waiver and release shall
be part of the consideration for the issue of the Debt Securities. 

        Section 13.11    Severability.    In case any provision in this Indenture or the Debt 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 13.12    Effect of Headings.    The article and section headings herein and in the Table of Contents
are for convenience only and shall not affect the construction hereof. 

        Section 13.13    Indenture May Be Executed in Counterparts.    This Indenture may be executed in any number of
counterparts, each of which shall be an original; but such counterparts shall together constitute but one and the same instrument. 

 
 

  ARTICLE XIV
  GUARANTEE    
    

        Section 14.01    Unconditional Guarantee.    

        (a)   Notwithstanding
any provision of this Article XIV to the contrary, the provisions of this Article XIV shall be applicable only to, and inure solely to the
benefit of, the Debt Securities of any series designated, pursuant to Section 2.03, as entitled to the benefits of the Guarantee of each of the Subsidiary Guarantors. 

        (b)   For
value received, each of the Subsidiary Guarantors hereby fully, unconditionally and absolutely guarantees (the "Guarantee") to the Holders and to the Trustee the due
and punctual payment of the principal of, and premium, if any, and interest on the Debt Securities and all other amounts due and payable under this Indenture and the Debt Securities by the Issuers,
when and as such principal, premium, if any, and interest shall become due and payable, whether at the Stated Maturity or by declaration of acceleration, call for redemption or otherwise, according to
the terms of the Debt Securities and this Indenture, subject to the limitations set forth in Section 14.03. 

        (c)   Failing
payment when due of any amount guaranteed pursuant to the Guarantee, for whatever reason, each of the Subsidiary Guarantors will be jointly and severally
obligated to pay the same immediately. The Guarantee hereunder is intended to be a general, unsecured, senior obligation of each of the Subsidiary Guarantors and will rank pari passu in right of
payment with all Debt of each Subsidiary Guarantor that is not, by its terms, expressly subordinated in right of payment to the Guarantee. Each of the Subsidiary Guarantors hereby agrees that its
obligations hereunder shall be full, 

44

 

unconditional
and absolute, irrespective of the validity, regularity or enforceability of the Debt Securities, the Guarantee (including the Guarantee of any other Subsidiary Guarantor) or this
Indenture, the absence of any action to enforce the same, any waiver or consent by any Holder of the Debt Securities with respect to any provisions hereof or thereof, the recovery of any judgment
against either of the Issuers or any other Subsidiary Guarantor, or any action to enforce the same or any other circumstances which might otherwise constitute a legal or equitable discharge or defense
of any of the Subsidiary Guarantors. Each of the Subsidiary Guarantors hereby agrees that in the event of a default in payment of the principal of, or premium, if any, or interest on the Debt
Securities, whether at the Stated Maturity or by declaration of acceleration, call for redemption or otherwise, legal proceedings may be instituted by the Trustee on behalf of the Holders or, subject
to Section 6.04, by the Holders, on the terms and conditions set forth in this Indenture, directly against such Subsidiary Guarantor to enforce the Guarantee without first proceeding against
either of the Issuers or any other Subsidiary Guarantor. 

        (d)   The
obligations of each of the Subsidiary Guarantors under this Article XIV shall be as aforesaid full, unconditional and absolute and shall not be impaired,
modified, released or limited by any occurrence or condition whatsoever, including, without limitation, (A) any compromise, settlement, release, waiver, renewal, extension, indulgence or
modification of, or any change in, any of the obligations and liabilities of any of the Issuers or the Subsidiary Guarantors contained in the Debt Securities or this Indenture, (B) any
impairment, modification, release or limitation of the liability of any of the Issuers or the Subsidiary Guarantors or any of their estates in bankruptcy, or any remedy for the enforcement thereof,
resulting from the operation of any present or future provision of any applicable Bankruptcy Law, as amended, or other statute or from the decision of any court, (C) the assertion or exercise
by any of the Issuers, the Subsidiary Guarantors or the Trustee of any rights or remedies under the Debt Securities or this Indenture or their delay in or failure to assert or exercise any such rights
or remedies, (D) the assignment or the purported assignment of any property as security for the Debt Securities, including all or any part of the rights of any of the Issuers or the Subsidiary
Guarantors under this Indenture, (E) the extension of the time for payment by any of the Issuers or the Subsidiary Guarantors of any payments or other sums or any part thereof owing or payable
under any of the terms and provisions of the Debt Securities or this Indenture or of the time for performance by any of the Issuers or the Subsidiary Guarantors of any other obligations under or
arising out of any such terms and provisions or the extension or the renewal of any thereof, (F) the modification or amendment (whether material or otherwise) of any duty, agreement or
obligation of any of the Issuers or the Subsidiary Guarantors set forth in this Indenture, (G) the voluntary or involuntary liquidation, dissolution, sale or other disposition of all or
substantially all of the assets, marshaling of assets and liabilities, receivership, insolvency, bankruptcy, assignment for the benefit of creditors, reorganization, arrangement, composition or
readjustment of, or other similar proceeding affecting, any of the Issuers or the Subsidiary Guarantors or any of their respective assets, or the disaffirmance of the Debt Securities, the Guarantee or
this Indenture in any such proceeding, (H) the release or discharge of any of the Issuers or the Subsidiary Guarantors from the performance or observance of any agreement, covenant, term or
condition contained in any of such instruments by operation of law, (I) the unenforceability of the Debt Securities, the Guarantee or this Indenture or (J) any other circumstances (other
than payment in full or discharge of all amounts guaranteed pursuant to the Guarantee) which might otherwise constitute a legal or equitable discharge of a surety or guarantor. 

        (e)   Each
of the Subsidiary Guarantors hereby (A) waives diligence, presentment, demand of payment, filing of claims with a court in the event of the merger,
insolvency or bankruptcy of any of the Issuers or the Subsidiary Guarantors, and all demands whatsoever, (B) acknowledges that any agreement, instrument or document evidencing the Guarantee may
be transferred and that the benefit of its obligations hereunder shall extend to each holder of any agreement, instrument or document evidencing the Guarantee without notice to it and
(C) covenants that the Guarantee will not be 

45

 

discharged
except by complete performance of the Guarantee. Each of the Subsidiary Guarantors further agrees that if at any time all or any part of any payment theretofore applied by any Person to the
Guarantee is, or must be, rescinded or returned for any reason whatsoever, including without limitation, the insolvency, bankruptcy or reorganization of any of the Issuers or the Subsidiary
Guarantors, the Guarantee shall, to the extent that such payment is or must be rescinded or returned, be deemed to have continued in existence notwithstanding such application, and the Guarantee shall
continue to be effective or be reinstated, as the case may be, as though such application had not been made. 

        (f)    Each
of the Subsidiary Guarantors shall be subrogated to all rights of the Holders and the Trustee against the Issuers in respect of any amounts paid by such Subsidiary
Guarantor pursuant to the provisions of this Indenture, provided, however, that such Subsidiary Guarantor, shall not be entitled to enforce or to receive any payments arising out of, or based upon,
such right of subrogation until all of the Debt Securities and the Guarantee shall have been paid in full or discharged. 

        Section 14.02    Execution and Delivery of Guarantee.    To further evidence the Guarantee set forth in
Section 14.01, each of the Subsidiary Guarantors hereby agrees that a notation relating to such Guarantee, substantially in the form attached hereto as Annex A, shall be endorsed on each
Debt Security entitled to the benefits of the Guarantee authenticated and delivered by the Trustee and executed by either manual or facsimile signature of an Officer of such Subsidiary Guarantor. Each
of the Subsidiary Guarantors hereby agrees that the Guarantee set forth in Section 14.01 shall remain in full force and effect notwithstanding any failure to endorse on each Debt Security a
notation relating to the Guarantee. If any Officer of any Subsidiary Guarantor whose signature is on this Indenture or a Debt Security no longer holds that office at the time the Trustee authenticates
such Debt Security or at any time thereafter, the Guarantee of such Debt Security shall be valid nevertheless. The delivery of any Debt 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 Subsidiary Guarantors. 

        The
Trustee hereby accepts the trusts in this Indenture upon the terms and conditions herein set forth. 

        Section 14.03    Limitation on Subsidiary Guarantors' Liability.    Each Subsidiary Guarantor and by its
acceptance hereof each Holder of a Debt Security entitled to the benefits of the Guarantee hereby confirm that it is the intention of all such parties that the guarantee by such Subsidiary Guarantor
pursuant to the Guarantee not constitute a fraudulent transfer or conveyance for purposes of any Federal or state law. To effectuate the foregoing intention, the Holders of a Debt Security entitled to
the benefits of the Guarantee and the Subsidiary Guarantors hereby irrevocably agree that the obligations of each Subsidiary Guarantor under the Guarantee shall be limited to the maximum amount as
will, after giving effect to all other contingent and fixed liabilities of such Subsidiary Guarantor and to any collections from or payments made by or on behalf of any other Subsidiary Guarantor in
respect of the obligations of such other Subsidiary Guarantor under the Guarantee, not result in the obligations of such Subsidiary Guarantor under the Guarantee constituting a fraudulent conveyance
or fraudulent transfer under Federal or state law. 

        Section 14.04    Release of Subsidiary Guarantors from Guarantee.    

        (a)   Notwithstanding
any other provisions of this Indenture, the Guarantee of any Subsidiary Guarantor may be released upon the terms and subject to the conditions set forth
in Section 11.02(b) and in this Section 14.04. Provided that no Default shall have occurred and shall be continuing under this Indenture, the Guarantee incurred by a Subsidiary Guarantor
pursuant to this Article XIV shall be unconditionally released and discharged (i) automatically upon (A) any sale, exchange or transfer, whether by way of merger or otherwise, to
any Person that is not an Affiliate of the Partnership, of all of the Partnership's direct or indirect limited partnership or other equity interests in such Subsidiary Guarantor (provided such sale,
exchange or transfer is not prohibited by this Indenture) or (B) the 

46

 

merger
of such Subsidiary Guarantor into either of the Issuers or any other Subsidiary Guarantor or the liquidation and dissolution of such Subsidiary Guarantor (in each case to the extent not
prohibited by this Indenture) or (ii) upon the Issuers' delivery of a written notice to the Trustee of the release or discharge of all guarantees by such Subsidiary Guarantor of any Debt of the
Issuers other than obligations arising under this Indenture and any Debt Securities issued hereunder, except a discharge or release by or as a result of payment under such guarantees. 

        (b)   The
Trustee shall deliver an appropriate instrument evidencing any release of a Subsidiary Guarantor from the Guarantee upon receipt of a written request of the Issuers
accompanied by an Officers' Certificate and an Opinion of Counsel to the effect that the Subsidiary Guarantor is entitled to such release in accordance with the provisions of this Indenture. Any
Subsidiary Guarantor not so released shall remain liable for the full amount of principal of (and premium, if any) and interest on the Debt Securities entitled to the benefits of the Guarantee as
provided in this Indenture, subject to the limitations of Section 14.03. 

        Section 14.05    Subsidiary Guarantor Contribution.    In order to provide for just and equitable contribution
among the Subsidiary Guarantors, the Subsidiary Guarantors hereby agree, inter se, that in the event any payment or distribution is made by any Subsidiary Guarantor (a "Funding Guarantor") under the
Guarantee, such Funding Guarantor shall be entitled to a contribution from each other Subsidiary Guarantor (if any) in a pro rata amount based on the net assets of each Subsidiary Guarantor (including
the Funding Guarantor) for all payments, damages and expenses incurred by that Funding Guarantor in discharging the Issuers' obligations with respect to the Debt Securities or any other Subsidiary
Guarantor's obligations with respect to the Guarantee. 

[Remainder
of This Page Intentionally Left Blank.] 

47

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

 

 

							
	 
	 	GLOBAL PARTNERS LP
	 
	 	 By:
	 	  GLOBAL GP LLC,

its Managing General Partner

	 
	 	 By:
	 	    

 
	 
	 	 	 	Name:	 	 
	 
	 	 	 	Title:	 	 
	 
	 	  GLP FINANCE CORP.

	 
	 	 By:
	 	    

 
	 
	 	 	 	Name:	 	 
	 
	 	 	 	Title:	 	 
	 
	 	  [NAME OF SUBSIDIARY GUARANTOR(S)]

	 
	 	 By:
	 	   

 
	 
	 	Name:	 	 	 	 
	 
	 	Title:	 	 	 	 
	 
	 	                                      , as Trustee

	 
	 	 By:
	 	    

 
	 
	 	Name:	 	 	 	 
	 
	 	Title:	 	 	 	 

 

 [Signature Page to Senior Indenture] 

 

 
 

  ANNEX A    
    

 
    NOTATION OF GUARANTEE    
    

        Each
of the Subsidiary Guarantors (which term includes any successor Person under the Indenture), has fully, unconditionally and absolutely guaranteed, to the extent set forth in the
Indenture and subject to the provisions in the Indenture, the due and punctual payment of the principal of, and premium, if any, and interest on the Debt Securities and all other amounts due and
payable under the Indenture and the Debt Securities by the Issuers. 

        The
obligations of the Subsidiary Guarantors to the Holders of Debt Securities and to the Trustee pursuant to the Guarantee and the Indenture are expressly set forth in
Article XIV of the Indenture and reference is hereby made to the Indenture for the precise terms of the Guarantee. 

 

 

					
	 
	 	[NAME OF SUBSIDIARY GUARANTOR(S)]
	 
	 	 By:
	 	 

 
	 
	 	Name:	 	

 
	 
	 	Title:	 	

 

 

 A-1

QuickLinks

Exhibit 4.1

CROSS-REFERENCE TABLE

TABLE OF CONTENTS

RECITALS OF THE ISSUERS AND ANY SUBSIDIARY GUARANTORS

ARTICLE I DEFINITIONS AND INCORPORATION BY REFERENCE

ARTICLE II DEBT SECURITIES

TRUSTEE'S CERTIFICATE OF AUTHENTICATION

ARTICLE III REDEMPTION OF DEBT SECURITIES

ARTICLE IV PARTICULAR COVENANTS OF THE ISSUERS

ARTICLE V HOLDERS' LISTS AND REPORTS BY THE TRUSTEE

ARTICLE VI REMEDIES OF THE TRUSTEE AND HOLDERS IN EVENT OF DEFAULT

ARTICLE VII CONCERNING THE TRUSTEE

ARTICLE VIII CONCERNING THE HOLDERS

ARTICLE IX SUPPLEMENTAL INDENTURES

ARTICLE X CONSOLIDATION, MERGER, SALE OR CONVEYANCE

ARTICLE XI SATISFACTION AND DISCHARGE OF INDENTURE; DEFEASANCE; UNCLAIMED MONEYS

ARTICLE XII [RESERVED]

ARTICLE XIII MISCELLANEOUS PROVISIONS

ARTICLE XIV GUARANTEE

ANNEX A

NOTATION OF GUARANTEE

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