Document:

exv4w5

EXHIBIT 4.5

 

D.R. HORTON, INC.

and

THE GUARANTORS FROM TIME TO TIME PARTY HERETO

Subordinated Debt Securities

Indenture

Dated as of [            ]

AMERICAN STOCK TRANSFER & TRUST COMPANY, LLC,

as Trustee

 

 

 

CROSS-REFERENCE TABLE

This Cross-Reference Table is not a part of the Indenture.

	 	 	 
	TIA	 	Indenture
	Section	 	Section
	310(a)(1)

	 	7.10 
	(a)(2)

	 	7.10 
	(a)(3)

	 	N.A.
	(a)(4)

	 	N.A.
	(b)

	 	7.08; 7.10; 13.02 
	 
	 	 
	311(a)

	 	7.11 
	(b)

	 	7.11 
	(c)

	 	N.A.
	 
	 	 
	312(a)

	 	2.05 
	(b)

	 	13.03 
	(c)

	 	13.03 
	 
	313(a)

	 	7.06 
	(b)(1)

	 	N.A.
	(b)(2)

	 	7.06 
	(c)

	 	13.02 
	(d)

	 	7.06 
	 
	 	 
	314(a)

	 	4.03; 13.02 
	(b)

	 	N.A.
	(c)(1)

	 	13.04 
	(c)(2)

	 	13.04 
	(c)(3)

	 	N.A.
	(d)

	 	N.A.
	(e)

	 	13.05 
	 
	 	 
	315(a)

	 	7.01(b) 
	(b)

	 	7.05; 13.02 
	(c)

	 	7.01(a) 
	(d)

	 	7.01(c) 
	(e)

	 	6.11 
	 
	 	 
	316(a)(last sentence)

	 	13.06 
	(a)(1)(A)

	 	6.05 
	(a)(1)(B)

	 	6.04 
	(a)(2)

	 	N.A.
	(b)

	 	6.07 
	 
	 	 
	317(a)(1)

	 	6.08 
	(a)(2)

	 	6.09 
	(b)

	 	2.04 
	 
	 	 
	318(a)

	 	13.01 

 

			
	N.A.	 	means Not Applicable.

 

 

TABLE OF CONTENTS

This Table of Contents is not a part of the Indenture.

	 	 	 	 	 
	 	 	Page	 
	ARTICLE ONE

	 
	 	 	 	 
	DEFINITIONS AND INCORPORATION BY REFERENCE

	 
	 	 	 	 
	Section 1.01. Definitions
	 	 	1	 
	Section 1.02. Other Definitions
	 	 	6	 
	Section 1.03. Incorporation by Reference of Trust Indenture Act
	 	 	6	 
	Section 1.04. Rules of Construction
	 	 	7	 
	 
	 	 	 	 
	ARTICLE TWO

	 
	 	 	 	 
	THE SECURITIES

	 
	 	 	 	 
	Section 2.01. Form and Dating
	 	 	7	 
	Section 2.02. Execution and Authentication
	 	 	9	 
	Section 2.03. Registrar and Paying Agent
	 	 	9	 
	Section 2.04. Paying Agent to Hold Money in Trust
	 	 	10	 
	Section 2.05. Securityholder Lists
	 	 	10	 
	Section 2.06. Transfer and Exchange
	 	 	10	 
	Section 2.07. Replacement Securities
	 	 	10	 
	Section 2.08. Outstanding Securities
	 	 	10	 
	Section 2.09. Temporary Securities
	 	 	11	 
	Section 2.10. Cancellation
	 	 	11	 
	Section 2.11. Defaulted Interest
	 	 	11	 
	Section 2.12. Treasury Securities
	 	 	11	 
	Section 2.13. CUSIP/ISIN Numbers
	 	 	12	 
	Section 2.14. Deposit of Moneys
	 	 	12	 
	Section 2.15. Book-Entry Provisions for Global Security
	 	 	12	 
	 
	 	 	 	 
	ARTICLE THREE

	 
	 	 	 	 
	REDEMPTION

	 
	 	 	 	 
	Section 3.01. Notices to Trustee
	 	 	13	 
	Section 3.02. Selection of Securities to be Redeemed
	 	 	14	 
	Section 3.03. Notice of Redemption
	 	 	14	 
	Section 3.04. Effect of Notice of Redemption
	 	 	14	 
	Section 3.05. Deposit of Redemption Price
	 	 	14	 
	Section 3.06. Securities Redeemed in Part
	 	 	15	 
	 
	 	 	 	 
	ARTICLE FOUR

	 
	 	 	 	 
	COVENANTS

	 
	 	 	 	 
	Section 4.01. Payment of Securities
	 	 	15	 
	Section 4.02. Maintenance of Office or Agency
	 	 	15	 
	Section 4.03. Compliance Certificate
	 	 	15	 
	Section 4.04. Payment of Taxes; Maintenance of Corporate Existence; Maintenance of
Properties
	 	 	15	 
	Section 4.05. Additional Guarantors 

	 	 	16	 

- i -

 

 

	 	 	 	 	 
	 	 	Page	 
	Section 4.06. Waiver of Stay, Extension or Usury Laws
	 	 	16	 
	 
	 	 	 	 
	ARTICLE FIVE

	 
	 	 	 	 
	SUCCESSOR CORPORATION

	 
	 	 	 	 
	Section 5.01. When Company May Merge, etc.
	 	 	16	 
	 
	 	 	 	 
	ARTICLE SIX

	 
	 	 	 	 
	DEFAULTS AND REMEDIES

	 
	 	 	 	 
	Section 6.01. Events of Default
	 	 	17	 
	Section 6.02. Acceleration
	 	 	18	 
	Section 6.03. Other Remedies
	 	 	19	 
	Section 6.04. Waiver of Existing Defaults
	 	 	19	 
	Section 6.05. Control by Majority
	 	 	19	 
	Section 6.06. Limitation on Suits
	 	 	19	 
	Section 6.07. Rights of Holders to Receive Payment
	 	 	20	 
	Section 6.08. Collection Suit by Trustee
	 	 	20	 
	Section 6.09. Trustee May File Proofs of Claim
	 	 	20	 
	Section 6.10. Priorities
	 	 	20	 
	Section 6.11. Undertaking for Costs
	 	 	21	 
	 
	 	 	 	 
	ARTICLE SEVEN

	 
	 	 	 	 
	TRUSTEE

	 
	 	 	 	 
	Section 7.01. Duties of Trustee
	 	 	21	 
	Section 7.02. Rights of Trustee
	 	 	22	 
	Section 7.03. Individual Rights of Trustee
	 	 	22	 
	Section 7.04. Trustee’s Disclaimer
	 	 	22	 
	Section 7.05. Notice of Defaults
	 	 	23	 
	Section 7.06. Reports by Trustee to Holders
	 	 	23	 
	Section 7.07. Compensation and Indemnity
	 	 	23	 
	Section 7.08. Replacement of Trustee
	 	 	23	 
	Section 7.09. Successor Trustee by Merger, etc.
	 	 	24	 
	Section 7.10. Eligibility; Disqualification
	 	 	24	 
	Section 7.11. Preferential Collection of Claims Against Company
	 	 	24	 
	 
	 	 	 	 
	ARTICLE EIGHT

	 
	 	 	 	 
	DISCHARGE OF INDENTURE

	 
	 	 	 	 
	Section 8.01. Defeasance upon Deposit of Moneys or U.S. Government Obligations.

	 	 	24	 
	Section 8.02. Survival of the Company’s Obligations
	 	 	27	 
	Section 8.03. Application of Trust Money
	 	 	27	 
	Section 8.04. Repayment to the Company
	 	 	27	 
	Section 8.05. Reinstatement
	 	 	27	 
	 
	 	 	 	 
	ARTICLE NINE

	 
	 	 	 	 
	GUARANTEES

	 
	 	 	 	 
	Section 9.01. Unconditional Guarantees
	 	 	27	 

- ii -

 

 

	 	 	 	 	 
	 	 	Page	 
	Section 9.02. Severability
	 	 	28	 
	Section 9.03. Release of a Guarantor
	 	 	28	 
	Section 9.04. Limitation of a Guarantor’s Liability
	 	 	29	 
	Section 9.05. Contribution
	 	 	29	 
	Section 9.06. Waiver of Subrogation
	 	 	29	 
	Section 9.07. Execution of Guarantee
	 	 	30	 
	 
	 	 	 	 
	ARTICLE TEN

	 
	 	 	 	 
	AMENDMENTS, SUPPLEMENTS AND WAIVERS

	 
	 	 	 	 
	Section 10.01. Without Consent of Holders
	 	 	30	 
	Section 10.02. With Consent of Holders
	 	 	31	 
	Section 10.03. Compliance with Trust Indenture Act
	 	 	32	 
	Section 10.04. Revocation and Effect of Consents
	 	 	32	 
	Section 10.05. Notation on or Exchange of Securities
	 	 	32	 
	Section 10.06. Trustee to Sign Amendments, etc.
	 	 	32	 
	 
	 	 	 	 
	ARTICLE ELEVEN

	 
	 	 	 	 
	SUBORDINATION OF SECURITIES

	 
	 	 	 	 
	Section 11.01. Securities Subordinated to Senior Indebtedness
	 	 	33	 
	Section 11.02. No Payment on Securities in Certain Circumstances
	 	 	33	 
	Section 11.03. Payment Over of Proceeds upon Dissolution, etc.
	 	 	34	 
	Section 11.04. Subrogation
	 	 	35	 
	Section 11.05. Obligations of Company Unconditional
	 	 	35	 
	Section 11.06. Notice to Trustee
	 	 	36	 
	Section 11.07. Reliance on Judicial Order or Certificate of Liquidating Agent
	 	 	36	 
	Section 11.08. Trustee’s Relation to Senior Indebtedness
	 	 	36	 
	Section 11.09. Subordination Rights Not Impaired by Acts or Omissions of the Company
or Holders of Senior Indebtedness
	 	 	37	 
	Section 11.10. Securityholders Authorize Trustee to Effectuate Subordination of
Securities
	 	 	37	 
	Section 11.11. This Article Not to Prevent Events of Default
	 	 	37	 
	Section 11.12. Trustee’s Compensation Not Prejudiced
	 	 	37	 
	Section 11.13. No Waiver of Subordination Provisions
	 	 	37	 
	Section 11.14. Certain Payments May Be Paid Prior to Dissolution
	 	 	38	 
	 
	 	 	 	 
	ARTICLE TWELVE

	 
	 	 	 	 
	SUBORDINATION OF GUARANTEES

	 
	 	 	 	 
	Section 12.01. Guarantee Obligations Subordinated to Guarantor Senior Indebtedness.

	 	 	38	 
	Section 12.02. No Payment on Guarantees in Certain Circumstances
	 	 	38	 
	Section 12.03. Payment Over of Proceeds upon Dissolution, etc.
	 	 	39	 
	Section 12.04. Subrogation
	 	 	40	 
	Section 12.05. Obligations of Guarantors Unconditional
	 	 	41	 
	Section 12.06. Notice to Trustee
	 	 	41	 
	Section 12.07. Reliance on Judicial Order or Certificate of Liquidating Agent
	 	 	42	 
	Section 12.08. Trustee’s Relation to Guarantor Senior Indebtedness
	 	 	42	 
	Section 12.09. Subordination Rights Not Impaired by Acts or Omissions of the
Guarantors or Holders of Guarantor Senior Indebtedness
	 	 	42	 
	Section 12.10. Securityholders Authorize Trustee to Effectuate Subordination of
Guarantee
	 	 	42	 
	Section 12.11. This Article Not to Prevent Events of Default
	 	 	43	 
	Section 12.12. Trustee’s Compensation Not Prejudiced
	 	 	43	 
	Section 12.13. No Waiver of Guarantee Subordination Provisions
	 	 	43	 

- iii -

 

 

	 	 	 	 	 
	 	 	Page	 
	Section 12.14. Certain Payments May Be Paid Prior to Dissolution
	 	 	43	 
	 
	 	 	 	 
	ARTICLE THIRTEEN

	 
	 	 	 	 
	MISCELLANEOUS

	 
	 	 	 	 
	Section 13.01. Trust Indenture Act Controls
	 	 	43	 
	Section 13.02. Notices
	 	 	43	 
	Section 13.03. Communications by Holders with Other Holders
	 	 	44	 
	Section 13.04. Certificate and Opinion as to Conditions Precedent
	 	 	44	 
	Section 13.05. Statements Required in Certificate or Opinion
	 	 	45	 
	Section 13.06. Rules by Trustee and Agents
	 	 	45	 
	Section 13.07. Legal Holidays
	 	 	45	 
	Section 13.08. Governing Law
	 	 	45	 
	Section 13.09. No Adverse Interpretation of Other Agreements
	 	 	45	 
	Section 13.10. No Recourse Against Others
	 	 	45	 
	Section 13.11. Successors and Assigns
	 	 	45	 
	Section 13.12. Duplicate Originals
	 	 	46	 
	Section 13.13. Severability
	 	 	46	 

SIGNATURES

EXHIBIT A — Form of Security

- iv -

 

- 1 -

     INDENTURE dated as of [     ], 2009 (the “Base Indenture”), by and among D.R.
HORTON, INC., a Delaware corporation (the “Company”), each of the Guarantors from time to time
party hereto in respect of a particular Series of Securities (each as defined in 
Section
1.01 below) and AMERICAN STOCK TRANSFER & TRUST COMPANY, LLC, as trustee (the “Trustee”).

     Each party agrees as follows for the benefit of the other party and for the equal and ratable
benefit of the Holders of the Company’s debt securities issued under this Base Indenture:

ARTICLE ONE

DEFINITIONS AND INCORPORATION BY REFERENCE

Section 1.01. Definitions.

     “Affiliate” means, when used with reference to a specified person, any Person directly or
indirectly controlling or controlled by or under direct or indirect common control with the Person
specified.

     “Agent” means any Registrar, Paying Agent or co-Registrar or agent for service of notices and
demands.

     “Authorizing Resolution” means a resolution adopted by the Board of Directors or by an Officer
or committee of Officers pursuant to Board delegation authorizing a Series of Securities.

     “Bankruptcy Law” means Title 11 of the United States Code, as amended, or any similar federal
or state law for the relief of debtors.

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

     “Capital Stock” means, with respect to any Person, any and all shares, interests,
participations or other equivalents (however designated) of or in such Person’s capital stock or
other equity interests.

     “Capitalized Lease Obligations” of any Person means, at the time any determination thereof is
to be made, the obligations of such Person to pay rent or other amounts under a lease that is
required to be capitalized for financial reporting purposes in accordance with GAAP, and the amount
of such obligations will be the capitalized amount thereof determined in accordance with GAAP.

     “Company” means the party named as such in this Indenture until a successor replaces it
pursuant to the Indenture and thereafter means the successor.

     “control” means, when used with respect to any Person, 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.

     “Credit Facilities” means, collectively, each of the credit facilities and lines of credit of
the Company or one or more Guarantors in existence on the date of this Base Indenture and one or
more future facilities or lines of credit among or between the Company or one or more Guarantors
and one or more lenders pursuant to which the Company or any Guarantor may incur indebtedness for
working capital and general corporate purposes (including acquisitions), as any such facility or
line of credit may be amended, restated, supplemented or otherwise modified from time to time, and
includes any agreement extending the maturity of, increasing the amount of, or restructuring, all
or any portion of the Indebtedness under such facility or line of credit or any successor
facilities or lines of credit and includes any facility or line of credit with one or more lenders
refinancing or replacing all or any portion of the Indebtedness under such facility or line of
credit or any successor facility or line of credit.

 

- 2 -

     “Currency Agreement” of any Person means any foreign exchange contract, currency swap
agreement or other similar agreement or arrangement designed to protect such Person or any of its
Subsidiaries against fluctuations in currency values.

     “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.

     “Definitive Security” means a certificated Security registered in the name of the
Securityholder thereof.

     “Depositary” means, with respect to Securities of any Series which the Company shall determine
will be issued in whole or in part as a Global Security, DTC, another clearing agency, or any
successor registered as a clearing agency under the Exchange Act, and any other applicable U.S. or
foreign statute or regulation, which, in each case, shall be designated by the Company pursuant to
Section 2.01.

     “Designated Guarantor Senior Indebtedness” means any Guarantor Senior Indebtedness (a) under
any of the Credit Facilities or (b) which, at the time of determination, has an aggregate
commitment or principal amount outstanding of at least $25 million if the instrument governing such
Guarantor Senior Indebtedness expressly states that such Indebtedness is “Designated Guarantor
Senior Indebtedness” for purposes of this Indenture.

     “Designated Senior Indebtedness” means any Senior Indebtedness (a) under any of the Credit
Facilities or (b) which, at the time of determination, has an aggregate commitment or principal
amount outstanding of at least $25 million if the instrument governing such Senior Indebtedness
expressly states that such Indebtedness is “Designated Senior Indebtedness” for purposes of this
Indenture.

     “Dollars” and “$” mean United States Dollars.

     “DTC” means The Depository Trust Company, New York, New York.

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

     “GAAP” means generally accepted accounting principles set forth in the accounting standards
codification of the Financial Accounting Standards Board or in such other statements by such or any
other entity as may be approved by a significant segment of the accounting profession of the United
States, as in effect on the date of this Base Indenture.

     “Global Security” means, with respect to any Series of Securities, a Security executed by the
Company and delivered by the Trustee to the Depositary or pursuant to the Depositary’s instruction,
all in accordance with the Indenture, which shall be registered in the name of the Depositary or
its nominee.

     “Guarantee” means the guarantee of Securities of any applicable Series by each Guarantor
thereof under this Indenture.

     “Guarantor Senior Indebtedness” means, with respect to any Guarantor, at any date, whether
currently existing or hereafter incurred, (a) all Obligations under the Credit Facilities; (b) all
Obligations in respect of indebtedness of such Guarantor for borrowed money or under any
reimbursement obligation relating to a letter of credit or other similar instruments or evidenced
by a bond, note, debenture or similar instrument, or such indebtedness of others guaranteed by the
applicable Guarantor (to the extent of the guarantee), and Capitalized Lease Obligations, unless
such instrument or the instrument under which such indebtedness is incurred expressly provides that
such instrument or indebtedness is not senior or superior in right of payment to such Guarantor’s
Guarantee, and all renewals, extensions, modifications, amendments or refinancings thereof; and (c)
all Obligations of such Guarantor under Interest Protection Agreements. Notwithstanding the
foregoing, Guarantor Senior Indebtedness shall not include (i) to the extent that it may constitute
indebtedness, any obligation for federal, state, local or other taxes; (ii) any indebtedness of
such Guarantor owed to the Company or any other Subsidiary of the Company; (iii) to the extent that
it may constitute indebtedness, any obligation in respect of any trade payable incurred for the
purchase of goods or materials, or for services obtained, in the ordinary course of business; (iv)
that

 

- 3 -

portion of any indebtedness that is incurred in violation of this Indenture; provided that no
such violation shall be deemed to exist for purposes of this clause (iv) if the holder(s)
of such indebtedness or their representative shall have received an Officers’ Certificate of the
Company to the effect that the incurrence of such indebtedness does not (or, in the case of
revolving credit indebtedness, that the incurrence of the entire committed amount thereof at the
date on which the initial borrowing thereunder is made would not) violate this Indenture); (v)
indebtedness evidenced by such Guarantor’s Guarantee of the Securities; and (vi) to the extent that
it may constitute indebtedness, any obligation owing under leases (other than Capitalized Lease
Obligations).

     “Guarantors” means with respect to any Series (i) the Company’s Subsidiaries signatory to the
supplemental indenture or specified in the Authorizing Resolution with respect to such Series as
the initial Guarantors of such Series, and (ii) each of the Company’s Subsidiaries that becomes a
Guarantor of such Series pursuant to the provisions of this Indenture, in each case until released
from its Guarantee pursuant to the provisions of this Indenture.

     “Holder” or “Securityholder” means the Person in whose name a Security is registered on the
Registrar’s books.

     “Indebtedness” of any Person means, without duplication, (i) any liability of such Person (a)
for borrowed money or under any reimbursement obligation relating to a letter of credit or other
similar instruments (other than any standby letter of credit or similar instrument issued for the
account of, or any surety, performance, completion or payment bond, earnest money note or similar
purpose undertaking or indemnification agreements issued or entered into by or for the account of,
such Person in the ordinary course of business), (b) evidenced by a bond, note, debenture or
similar instrument (including a purchase money obligation) given in connection with the acquisition
of any businesses, properties or assets of any kind or with services incurred in connection with
capital expenditures (other than any obligation to pay a contingent purchase price as long as such
obligation remains contingent), or (c) in respect of Capitalized Lease Obligations, (ii) any
Indebtedness of others described in clause (i) above that such Person has guaranteed to the
extent of the guarantee and (iii) all Indebtedness of others described in clause (i) above
secured by a Lien on any Property of such Person, whether or not such Indebtedness is assumed by
such Person; provided, that Indebtedness shall not include accounts payable, liabilities to trade
creditors of such Person or other accrued expenses arising in the ordinary course of business or
obligations under Currency Agreements or Interest Protection Agreements.

     “Indenture” means this Base Indenture as amended or supplemented from time to time, including
pursuant to any Authorizing Resolution or supplemental indenture pertaining to any Series, and
including, for all purposes of this instrument and any such Authorizing Resolution or supplemental
indenture, the provisions of the TIA that are deemed to be a part of and govern this Base Indenture
and any such Authorizing Resolution or supplemental indenture, respectively.

     “Interest Protection Agreement” of any Person means any interest rate swap agreement, interest
rate collar agreement, option or futures contract or other similar agreement or arrangement
designed to protect such Person or any of its Subsidiaries against fluctuations in interest rates
with respect to Indebtedness.

     “Issue Date” means, with respect to any Series of Securities, the date on which the Securities
of such Series are originally issued under this Indenture.

     “Lien” means, with respect to any Property, any mortgage, deed of trust, lien, pledge, charge,
hypothecation, security interest or encumbrance of any kind in respect of such Property. For
purposes of this definition, a Person shall be deemed to own, subject to a Lien, any Property which
it has acquired or holds subject to the interest of a vendor or lessor under any conditional sale
agreement, capital lease or other title retention agreement relating to such Property.

     “Major Credit Facilities” means, collectively, each of the Credit Facilities that provides for
commitments, or has loans or other extensions of credit outstanding thereunder, in each case in
excess of $50 million.

 

- 4 -

     “Non-Recourse Indebtedness” with respect to any Person means Indebtedness of such Person for
which (i) the sole legal recourse for collection of principal and interest on such Indebtedness is
against the specific Property identified in the instruments evidencing or securing such
Indebtedness (and any accessions thereto and proceeds thereof) and such Property was acquired with
the proceeds of such Indebtedness or such Indebtedness was incurred within 180 days after the
acquisition of such Property and (ii) no other assets of such Person may be realized upon in
collection of principal or interest on such Indebtedness. Indebtedness which is otherwise
Non-Recourse Indebtedness will not lose its character as Non-Recourse Indebtedness because there is
recourse to the borrower, any guarantor or any other Person for (i) environmental or tax warranties
and indemnities and such other representations, warranties, covenants and indemnities as are
customarily required in such transactions, or (ii) indemnities for and liabilities arising from
fraud, misrepresentation, misapplication or non-payment of rents, profits, insurance and
condemnation proceeds and other sums actually received by the borrower from secured assets to be
paid to the lender, waste and mechanics’ liens.

     “NYUCC” means the New York Uniform Commercial Code, as in effect from time to time.

     “Obligation” means, with respect to any indebtedness or instrument, any principal, premium,
interest (including Post-Petition Interest), penalties, fees, indemnification, reimbursements,
costs, expenses, damages and other liabilities payable under the documentation governing such
indebtedness or instrument.

     “Officer” means the Chairman of the Board, the President, any Vice President, the Treasurer,
the Controller or the Secretary of the Company or a Guarantor, as applicable.

     “Officers’ Certificate” means a certificate signed by two Officers or by an Officer and an
Assistant Treasurer or an Assistant Secretary of the Company.

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

     “Permitted Junior Securities” means (i) Capital Stock of the Company or any Guarantor or (ii)
debt securities issued pursuant to a confirmed plan of reorganization that are subordinated in
right of payment to all Senior Indebtedness or Guarantor Senior Indebtedness, as the case may be,
that may at the time be outstanding, to substantially the same extent as, or to a greater extent
than, the Securities and the Guarantees are subordinated as provided in this Indenture, as
applicable; provided (a) such securities are not entitled to the benefits of covenants or defaults
materially more beneficial to the holders of such securities than those in effect with respect to
the Securities on the Issue Date and (b) such securities do not provide for amortization (including
sinking fund and mandatory prepayment provisions) commencing prior to the date six months following
the final scheduled maturity date of the Senior Indebtedness or Guarantor Senior Indebtedness, as
the case may be (as modified by the plan of reorganization or readjustment pursuant to which such
securities are issued).

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

     “Post-Petition Interest” means interest on any Senior Indebtedness or Guarantor Senior
Indebtedness accruing subsequent to events of bankruptcy of the Company and or any Guarantor at the
rate provided in the document evidencing such Senior Indebtedness or Guarantor Senior Indebtedness,
as applicable, whether or not such interest is an allowed claim enforceable against the debtor in a
bankruptcy case under Bankruptcy Law.

     “principal” of a debt security means the principal of the security plus, when appropriate, the
premium, if any, on the security.

     “Property” of any Person means all types of real, personal, tangible, intangible or mixed
property owned by such Person, whether or not included in the most recent consolidated balance
sheet of such Person and its Subsidiaries under GAAP.

 

- 5 -

     “Publicly Traded Debt Securities” means any issue of debt securities of the Company or any of
its Subsidiaries originally issued in a public offering registered with the SEC or in an offering
pursuant to Rule 144A under the Securities Act and of which issue at least $50 million aggregate
principal amount is outstanding.

     “Representative” means, with respect to any Senior Indebtedness or Guarantor Senior
Indebtedness, any trustee, agent or other representative in respect of such Senior Indebtedness or
Guarantor Senior Indebtedness; provided that if, and for so long as, any Senior Indebtedness or
Guarantor Senior Indebtedness lacks such representative, then the Representative for such Senior
Indebtedness or Guarantor Senior Indebtedness shall at all times constitute the holders of a
majority in outstanding principal amount of such Senior Indebtedness or Guarantor Senior
Indebtedness.

     “SEC” means the Securities and Exchange Commission or any successor agency performing the
duties now assigned to it under the TIA.

     “Securities” means any Securities that are issued under this Base Indenture.

     “Securities Act” means the Securities Act of 1933, as amended.

     “Senior Indebtedness” means, at any date, whether currently existing or hereafter incurred,
(a) all Obligations under the Credit Facilities; (b) all Obligations in respect of indebtedness of
the Company for borrowed money or under any reimbursement obligation relating to a letter of credit
or other similar instruments or evidenced by a bond, note, debenture or similar instrument, or such
indebtedness of others guaranteed by the Company (to the extent of the guarantee), and Capitalized
Lease Obligations, unless such instrument or the instrument under which such indebtedness is
incurred expressly provides that such instrument or indebtedness is not senior or superior in right
of payment to the Securities, and all renewals, extensions, modifications, amendments or
refinancings thereof; and (c) all Obligations of the Company under Interest Protection Agreements.
Notwithstanding the foregoing, Senior Indebtedness shall not include (i) to the extent that it may
constitute indebtedness, any obligation for federal, state, local or other taxes; (ii) any
indebtedness of the Company owed to any Subsidiary of the Company; (iii) to the extent that it may
constitute indebtedness, any obligation in respect of any trade payable incurred for the purchase
of goods or materials, or for services obtained, in the ordinary course of business; (iv) that
portion of any indebtedness that is incurred in violation of this Indenture; provided that no such
violation shall be deemed to exist for purposes of this clause (iv) if the holder(s) of
such indebtedness or their representative shall have received an Officers’ Certificate of the
Company to the effect that the incurrence of such indebtedness does not (or, in the case of
revolving credit indebtedness, that the incurrence of the entire committed amount thereof at the
date on which the initial borrowing thereunder is made would not) violate this Indenture); (v)
indebtedness evidenced by the Securities; and (vi) to the extent that it may constitute
indebtedness, any obligation owing under leases (other than Capitalized Lease Obligations).

     “Series” means a series of Securities established under this Base Indenture.

     “Significant Subsidiary” means any Subsidiary of the Company which would constitute a
“significant subsidiary” as defined in Rule 1.02 of Regulation S-X under the Securities Act and the
Exchange Act.

     “Subsidiary” of any Person means any corporation or other entity of which a majority of the
Capital Stock having ordinary voting power to elect a majority of the board of directors of such
entity or other persons performing similar functions is at the time directly or indirectly owned or
controlled by such Person.

     “TIA” means the Trust Indenture Act of 1939, as in effect from time to time, except as
otherwise provided herein.

     “Trustee” means the party named as such in this Base Indenture until a successor replaces it
pursuant to this Base Indenture and thereafter means the successor serving hereunder; provided,
however, that if at any time there is more than one such Person, “Trustee” as used with respect to
the Securities of any Series shall mean only the Trustee with respect to Securities of that Series.

 

- 6 -

     “Trust Officer” means the Chairman of the Board, the President, any Vice President or any
other 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.

     “U.S. Government Obligations” means securities which are (i) direct obligations of the United
States for the payment of which its full faith and credit is pledged or (ii) obligations of a
Person controlled or supervised by and acting as an agency or instrumentality of the United States
the payment of which is unconditionally guaranteed as a full faith and credit obligation by the
United States, which, in either case are not callable or redeemable at the option of the issuer
thereof, and shall also include a depositary receipt issued by a bank or trust company as custodian
with respect to any such U.S. government obligations or a specific payment of interest on or
principal of any such U.S. government obligation held by such custodian for the account of the
holder of a depositary receipt; provided that (except as required by law) such custodian is not
authorized to make any deduction from the amount payable to the holder of such depositary receipt
from any amount received by the custodian in respect of the U.S. government obligation or the
specific payment of interest on or principal of the U.S. government obligation evidenced by such
depositary receipt.

Section 1.02. Other Definitions.

			
	 
	Term	 	Defined in Section
	Agent Members
	 	2.15
	Base Indenture
	 	Preamble
	Business Day
	 	13.07
	Covenant Defeasance
	 	8.01
	Custodian
	 	6.01
	Event of Default
	 	6.01
	Funding Guarantor
	 	9.05
	Guarantee
	 	9.01
	Guarantor Blockage Period
	 	12.02(a)
	Guarantor Payment Blockage Notice
	 	12.02(a)
	Legal Defeasance
	 	8.01
	Legal Holiday
	 	13.07
	Paying Agent
	 	2.03
	Payment Blockage Notice
	 	11.02(a)
	Payment Blockage Period
	 	11.02(a)
	Registrar
	 	2.03
	Security Register
	 	2.03
	Successor
	 	5.01

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. The following TIA terms used in this Indenture
have the following meanings:

     “Commission” means the SEC.

     “indenture securities” means the Securities of a particular Series.

     “indenture security holder” means a Securityholder.

     “indenture to be qualified” means this Indenture.

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

 

- 7 -

     “obligor” on the indenture securities means the Company, each of the Guarantors, or any other
obligor on the Securities of a Series or any Guarantees thereof.

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

Section 1.04. Rules of Construction.

     Unless the context otherwise requires:

	 	(1)	 	a term has the meaning assigned to it herein;
	 
	 	(2)	 	an accounting term not otherwise defined has the meaning assigned to it in
accordance with GAAP and all accounting determinations shall be made in accordance with
GAAP;
	 
	 	(3)	 	“or” is not exclusive and “including” means “including without limitation”;
	 
	 	(4)	 	words in the singular include the plural, and in the plural include the
singular;
	 
	 	(5)	 	“herein,” “hereof” and “hereunder,” and other words of similar import, refer to
this Indenture as a whole (including any Authorizing Resolution or supplemental
indenture relating to the relevant Series) and not to any particular Article, Section
or other subdivision;
	 
	 	(6)	 	all exhibits are incorporated by reference herein and expressly made a part of
this Indenture;
	 
	 	(7)	 	any transaction or event shall be considered “permitted by” or made “in
accordance with” or “in compliance with” this Indenture or any particular provision
thereof if such transaction or event is not expressly prohibited by this Indenture or
such provision, as the case may be; and
	 
	 	(8)	 	including for purposes of the definitions of “Senior Indebtedness” and
“Guarantor Senior Indebtedness,” no Indebtedness or other obligation will be deemed to
be subordinated in right of payment to any other Indebtedness or obligation solely by
virtue of being unsecured or secured by a junior priority lien or by virtue of the fact
that the holders of such Indebtedness or other obligation have entered into
intercreditor agreements or other arrangements giving one or more of such holders
priority over the other holders in the collateral held by them, including intercreditor
agreements that contain customary provisions requiring turnover by holders of junior
prior liens of proceeds of collateral in the event that the security interests in favor
of the holders of the senior priority in such intended collateral are not perfected or
invalidated and similar customary provisions protecting the holders of senior priority
liens.

ARTICLE TWO

THE SECURITIES

Section 2.01. Form and Dating.

     The aggregate principal amount of Securities that may be issued under this Base Indenture is
unlimited. The Securities may be issued from time to time in one or more Series. Each Series
shall be created by an Authorizing Resolution or a supplemental indenture that establishes the
terms of the Series, which may include the following:

	 	(1)	 	the title of the Series;

 

- 8 -

	 	(2)	 	the aggregate principal amount (or any limit on the aggregate principal amount)
of the Series and, if any Securities of a Series are to be issued at a discount from
their face amount, the method of computing the accretion of such discount;
	 
	 	(3)	 	the interest rate or method of calculation of the interest rate;
	 
	 	(4)	 	the date from which interest will accrue;
	 
	 	(5)	 	the record dates for interest payable on Securities of the Series;
	 
	 	(6)	 	the dates when, places where and manner in which principal and interest are
payable;
	 
	 	(7)	 	the Registrar and Paying Agent;
	 
	 	(8)	 	the terms of any mandatory (including any sinking fund requirements) or
optional redemption by the Company;
	 
	 	(9)	 	the terms of any redemption at the option of Holders;
	 
	 	(10)	 	the permissible denominations in which Securities of such Series are issuable,
if different from $2,000 and multiples of $1,000 in excess thereof;
	 
	 	(11)	 	whether Securities of such Series will be issued in registered or bearer form
and the terms of any such forms of Securities;
	 
	 	(12)	 	whether the 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 different from
those contained in this Base Indenture, upon which such Global Security or Securities
may be exchanged in whole or in part for Definitive Securities; the Depositary for such
Global Security or Securities; the form of any legend or legends, if any, to be borne
by any such Global Security or Securities in addition to or in lieu of the legends
referred to in Section 2.15;
	 
	 	(13)	 	the currency or currencies (including any composite currency) in which
principal or interest or both may be paid;
	 
	 	(14)	 	if payments of principal or interest may be made in a currency other than that
in which Securities of such Series are denominated, the manner for determining such
payments;
	 
	 	(15)	 	provisions for electronic issuance of Securities or issuance of Securities of
such Series in uncertificated form;
	 
	 	(16)	 	any Events of Default, covenants and/or defined terms in addition to or in lieu
of those set forth in this Base Indenture;
	 
	 	(17)	 	whether and upon what terms Securities of such Series may be defeased or
discharged if different from the provisions set forth in this Base Indenture;
	 
	 	(18)	 	the form of the Securities of such Series, which, unless the Authorizing
Resolution or supplemental indenture otherwise provides, shall be in the form of
Exhibit A;
	 
	 	(19)	 	any terms that may be required by or advisable under applicable law;
	 
	 	(20)	 	the percentage of the principal amount of the Securities of such Series which
is payable if the maturity of the Securities of such Series is accelerated in the case
of Securities issued at a discount from their face amount;

 

- 9 -

	 	(21)	 	whether Securities of such Series will or will not have the benefit of
Guarantees and the Company’s Subsidiaries that will be the initial Guarantors of such
Series;
	 
	 	(22)	 	whether the Securities of the Series will be convertible into or exchangeable
for other Securities, common shares or other securities of any kind of the Company or
another obligor, and, if so, the terms and conditions upon which such Securities will
be so convertible or exchangeable, including the initial conversion or exchange price
or rate or the method of calculation, how and when the conversion price or exchange
ratio may be adjusted, whether conversion or exchange is mandatory, at the option of
the holder or at the Company’s option, the conversion or exchange period, and any other
provision in relation thereto; and
	 
	 	(23)	 	any other terms in addition to or different from those contained in this Base
Indenture applicable to such Series.

     All Securities of one Series need not be issued at the same time and, unless otherwise
provided, a Series may be reopened for issuances of additional Securities of such Series pursuant
to an Authorizing Resolution, an Officers’ Certificate or in any indenture supplemental hereto.

     The creation and issuance of a Series and the authentication and delivery thereof are not
subject to any conditions precedent.

Section 2.02. Execution and Authentication.

     One Officer shall sign the Securities for the Company by manual or facsimile signature. Each
Guarantor shall execute the Guarantee in the manner set forth in Section 9.07.

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

     A Security shall not be valid until the Trustee manually signs the certificate of
authentication on the Security. The signature shall be conclusive evidence that the Security has
been authenticated under this Base Indenture.

     The Trustee shall authenticate Securities for original issue upon receipt of an Officers’
Certificate of the Company. Each Security shall be dated the date of its authentication.

Section 2.03. Registrar and Paying Agent.

     The Company shall maintain an office or agency where Securities may be presented for
registration of transfer or for exchange (“Registrar”), an office or agency where Securities may be
presented for payment (“Paying Agent”) and an office or agency where notices and demands to or upon
the Company in respect of the Securities and this Indenture may be served. The Registrar shall
keep a register of the Securities and of their transfer and exchange (the “Security Register”).
The Company may have one or more co-Registrars and one or more additional paying agents. The term
“Paying Agent” includes any additional paying agent.

     The Company shall enter into an appropriate agency agreement with any Agent not a party to
this Base Indenture. The agreement shall implement the provisions of this Indenture that relate to
such Agent. The Company shall promptly notify the Trustee in writing of the name and address of
any such Agent and the Trustee shall have the right to inspect the Securities Register at all
reasonable times to obtain copies thereof, and the Trustee shall have the right to rely upon such
register as to the names and addresses of the Holders and the principal amounts and certificate
numbers thereof. If the Company fails to maintain a Registrar or Paying Agent or fails to give the
foregoing notice, the Trustee shall act as such.

     The Company initially appoints the Trustee as Registrar and Paying Agent.

 

- 10 -

Section 2.04. Paying Agent to Hold Money in Trust.

     Each Paying Agent shall hold in trust for the benefit of Securityholders and the Trustee all
money held by the Paying Agent for the payment of principal of or interest on the Securities, and
shall notify the Trustee of any default by the Company in making any such payment. If the Company
or a Subsidiary acts as Paying Agent, it shall segregate the money and hold it as a separate trust
fund. The Company at any time may require a Paying Agent to pay all money held by it to the
Trustee. Upon doing so the Paying Agent shall have no further liability for the money.

Section 2.05. Securityholder Lists.

     The Trustee shall preserve in as current a form as is reasonably practicable the most recent
list available to it of the names and addresses of Securityholders. If the Trustee is not the
Registrar, the Company shall furnish to the Trustee at least five (5) Business Days before each
semiannual interest payment date and at such other times as the Trustee may request in writing a
list in such form and as of such date as the Trustee may reasonably require of the names and
addresses of Securityholders.

Section 2.06. Transfer and Exchange.

     Where a Security is presented to the Registrar or a co-Registrar with a request to register a
transfer, the Registrar shall register the transfer as requested if the requirements of Section
8-401(a) of the NYUCC are met and the other provisions of this Section 2.06 are satisfied.
Where Securities are presented to the Registrar or a co-Registrar with a request to exchange them
for an equal principal amount of Securities of other denominations, the Registrar shall make the
exchange as requested if the same requirements are met. To permit transfers and exchanges, the
Trustee shall authenticate Securities at the Registrar’s request. The Registrar need not transfer
or exchange any Security selected for redemption or repurchase, except the unredeemed or
repurchased part thereof if the Security is redeemed or repurchased in part, or transfer or
exchange any Securities for a period of 15 days before a selection of Securities to be redeemed or
repurchased. Any exchange or transfer shall be without charge, except that the Company may require
payment of a sum sufficient to cover any tax or other governmental charge that may be imposed in
relation thereto except in the case of exchanges pursuant to 2.09, 3.06, or
10.05 not involving any transfer.

     Any Holder of a Global Security shall, by acceptance of such Global Security, agree that
transfers of beneficial interests in such Global Security may be effected only through a book entry
system maintained by the Holder of such Global Security (or its agent), and that ownership of a
beneficial interest in the Security shall be required to be reflected in a book entry.

Section 2.07. Replacement Securities.

     If the Holder of a Security claims that the Security has been lost, destroyed, mutilated or
wrongfully taken, the Company shall issue and execute a replacement security, the Guarantors shall
execute the related Guarantee and, upon written request of any Officer of the Company, the Trustee
shall authenticate such replacement Security, provided, in the case of a lost, destroyed or
wrongfully taken Security, that the requirements of Section 8-405 of the NYUCC are met. If any
such lost, destroyed, mutilated or wrongfully taken Security shall have matured or shall be about
to mature, the Company may, instead of issuing a substitute Security therefor, pay such Security
without requiring (except in the case of a mutilated Security) the surrender thereof. An indemnity
bond must be sufficient in the judgment of the Company and the Trustee to protect the Company, the
Trustee and any Agent from any loss which any of them may suffer if a Security is replaced,
including the acquisition of such Security by a bona fide purchaser. The Company and the Trustee
may charge for its expenses in replacing a Security.

Section 2.08. Outstanding Securities.

     Securities outstanding at any time are all Securities authenticated by the Trustee except for
those cancelled by it and those described in this Section. A Security does not cease to be
outstanding because the Company, any Guarantor or one of their Affiliates holds the Security.

 

- 11 -

     If a Security is replaced pursuant to Section 2.07, it ceases to be outstanding unless
the Trustee receives proof satisfactory to it that the replaced Security is held by a “protected
purchaser” (as such term is defined in the NYUCC).

     If the Paying Agent holds on a redemption date, purchase date or maturity date money
sufficient to pay Securities payable on that date, then on and after that date such Securities
cease to be outstanding and interest on them ceases to accrue.

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

Section 2.09. Temporary Securities.

     Until definitive Securities are ready for delivery, the Company may prepare and the Trustee
shall authenticate temporary Securities. Temporary Securities shall be substantially in the form
of definitive Securities but may have variations that the Company considers appropriate for
temporary Securities. Without unreasonable delay, the Company shall prepare and, upon surrender
for cancellation of the temporary Security, the Company and the Guarantors shall execute and the
Trustee shall authenticate definitive Securities in exchange for temporary Securities. Until so
exchanged, the temporary Securities shall in all respects be entitled to the same benefits under
this Indenture as definitive Securities authenticated and delivered hereunder.

Section 2.10. Cancellation.

     The Company at any time may deliver Securities to the Trustee for cancellation. The Registrar
and Paying Agent shall forward to the Trustee any Securities surrendered to them for registration
of transfer, exchange, redemption, purchase or payment. The Trustee and no one else shall cancel
and destroy, or retain in accordance with its standard retention policy, all Securities surrendered
for registration of transfer, exchange, redemption, purchase, payment or cancellation. Unless the
Authorizing Resolution or supplemental indenture so provides, the Company may not issue new
Securities to replace Securities that it has previously paid or delivered to the Trustee for
cancellation.

Section 2.11. Defaulted Interest.

     If the Company defaults in a payment of interest on the Securities of any Series, it shall pay
the defaulted interest plus any interest payable on the defaulted interest to the persons who are
Securityholders of such Series on a subsequent special record date. The Company shall fix such
special record date and a payment date which shall be reasonably satisfactory to the Trustee. At
least 15 days before such special record date, the Company shall mail to each Securityholder of the
relevant Series a notice that states the record date, the payment date and the amount of defaulted
interest to be paid. On or before the date such notice is mailed, the Company shall deposit with
the Paying Agent money sufficient to pay the amount of defaulted interest to be so paid. The
Company may pay defaulted interest in any other lawful manner if, after notice given by the Company
to the Trustee of the proposed payment, such manner of payment shall be deemed practicable by the
Trustee.

Section 2.12. Treasury Securities.

     In determining whether the Holders of the required principal amount of Securities of a Series
have concurred in any direction, waiver, consent or notice, Securities owned by the Company, the
Guarantors or any of their respective Affiliates shall be considered as though they are not
outstanding, except that for the purposes of determining whether the Trustee shall be protected in
relying on any such direction, waiver or consent, only Securities which the Trustee actually knows
are so owned shall be so considered.

 

- 12 -

Section 2.13. CUSIP/ISIN Numbers.

     The Company in issuing the Securities of any Series may use a “CUSIP” and/or “ISIN” or other
similar number, and if so, the Trustee shall use the CUSIP and/or ISIN or other similar number in
notices of redemption or exchange as a convenience to Holders of such Securities; provided that no
representation is hereby deemed to be made by the Trustee as to the correctness or accuracy of any
such CUSIP and/or ISIN or other similar number printed in the notice or on such Securities, and
that reliance may be placed only on the other identification numbers printed on such Securities.
The Company shall promptly notify the Trustee of any change in any CUSIP and/or ISIN or other
similar number.

Section 2.14. Deposit of Moneys.

     Prior to 11:00 a.m. New York City time on each interest payment date and maturity date with
respect to each Series of Securities, the Company shall have deposited with the Paying Agent in
immediately available funds money sufficient to make cash payments due on such interest payment
date or maturity date, as the case may be, in a timely manner which permits the Paying Agent to
remit payment to the Holders of such Series on such interest payment date or maturity date, as the
case may be.

Section 2.15. Book-Entry Provisions for Global Security.

     (a) Any Global Security of a Series initially shall (i) be registered in the name of the
Depositary or the nominee of such Depositary, (ii) be delivered to the Trustee as custodian for
such Depositary and (iii) bear any required legends.

     Members of, or participants in, the Depositary (“Agent Members”) shall have no rights under
this Indenture with respect to any Global Security held on their behalf by the Depositary, or the
Trustee as its custodian, or under the Global Security, and the Depositary may be treated by the
Company, the Trustee and any agent of the Company or the Trustee as the absolute owner of the
Global Security for all purposes whatsoever. Notwithstanding the foregoing, nothing herein shall
prevent the Company, the Trustee or any agent of the Company or the Trustee from giving effect to
any written certification, proxy or other authorization furnished by the Depositary or impair, as
between the Depositary and its Agent Members, the operation of customary practices governing the
exercise of the rights of a Holder of any Security.

     (b) Transfers of any Global Security shall be limited to transfers in whole, but not in part,
to the Depositary, its successors or their respective nominees. Interests of beneficial owners in
the Global Security may be transferred or exchanged for Definitive Securities in accordance with
the rules and procedures of the Depositary. In addition, Definitive Securities shall be
transferred to all beneficial owners in exchange for their beneficial interests in a Global
Security if (i) the Depositary notifies the Company that it is unwilling or unable to continue as
Depositary for the Global Security and a successor depository is not appointed by the Company
within 90 days of such notice or (ii) an Event of Default has occurred and is continuing and the
Registrar has received a request from the Depositary to issue Definitive Securities.

     (c) In connection with any transfer or exchange of a portion of the beneficial interest in any
Global Security to beneficial owners pursuant to paragraph (b), the Registrar shall (if one
or more Definitive Securities are to be issued) reflect on its books and records the date and a
decrease in the principal amount of the Global Security in an amount equal to the principal amount
of the beneficial interest in the Global Security to be transferred, and the Company and the
Guarantors shall execute, and the Trustee shall authenticate and deliver, one or more Definitive
Securities of like Series and amount.

     (d) In connection with the transfer of an entire Global Security to beneficial owners pursuant
to paragraph (b), the Global Security shall be deemed to be surrendered to the Trustee for
cancellation, and the Company and the Guarantors shall execute, and the Trustee shall authenticate
and deliver, to each beneficial owner identified by the Depositary in exchange for its beneficial
interest in the Global Security, an equal aggregate principal amount of Definitive Securities of
the same Series in authorized denominations.

 

- 13 -

     (e) The Holder of any Global Security may grant proxies and otherwise authorize any person,
including Agent Members and persons that may hold interests through Agent Members, to take any
action which a Holder is entitled to take under this Indenture or the Securities of such Series.

     (f) Unless otherwise provided in the Authorizing Resolution or supplemental indenture for a
particular Series of Securities, each Global Security of such Series shall bear legends in
substantially the following forms:

     “THIS GLOBAL SECURITY IS HELD BY THE DEPOSITARY (AS DEFINED IN THE INDENTURE GOVERNING
THIS SECURITY) OR ITS NOMINEE IN CUSTODY FOR THE BENEFIT OF THE HOLDERS OF BENEFICIAL
INTERESTS HEREIN, AND IS NOT TRANSFERABLE TO ANY PERSON UNDER ANY CIRCUMSTANCES EXCEPT THAT
(I) THE TRUSTEE MAY MAKE ANY SUCH NOTATIONS HEREON AS MAY BE REQUIRED PURSUANT TO THE
INDENTURE, (II) THIS GLOBAL SECURITY MAY BE EXCHANGED IN WHOLE BUT NOT IN PART PURSUANT TO
SECTION 2.06 OF THE INDENTURE, (III) THIS GLOBAL SECURITY MAY BE DELIVERED TO THE TRUSTEE
FOR CANCELLATION PURSUANT TO THE INDENTURE AND (IV) THIS GLOBAL SECURITY MAY BE TRANSFERRED
TO A SUCCESSOR DEPOSITARY WITH THE PRIOR WRITTEN CONSENT OF THE COMPANY.”

     “UNLESS AND UNTIL IT IS EXCHANGED IN WHOLE OR IN PART FOR SECURITIES IN DEFINITIVE
FORM, THIS SECURITY MAY NOT BE TRANSFERRED EXCEPT AS A WHOLE BY THE DEPOSITARY TO A NOMINEE
OF THE DEPOSITARY OR BY A NOMINEE OF THE DEPOSITARY TO THE DEPOSITARY OR TO ANOTHER NOMINEE
OF THE DEPOSITARY OR BY THE DEPOSITARY OR ANY SUCH NOMINEE TO A SUCCESSOR DEPOSITARY OR A
NOMINEE OF SUCH SUCCESSOR DEPOSITARY. UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED
REPRESENTATIVE OF THE DEPOSITARY TO THE COMPANY OR ITS AGENT FOR REGISTRATION OF TRANSFER,
EXCHANGE OR PAYMENT, AND ANY CERTIFICATE ISSUED IS REGISTERED IN THE NAME OF ANY ENTITY AS
MAY BE REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITARY (AND ANY PAYMENT IS MADE
TO SUCH ENTITY AS MAY BE REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITARY), ANY
TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL
INASMUCH AS THE REGISTERED OWNER HEREOF HAS AN INTEREST HEREIN.”

ARTICLE THREE

REDEMPTION

Section 3.01. Notices to Trustee.

     Securities of a Series that are redeemable prior to maturity shall be redeemable in accordance
with their terms and, unless the Authorizing Resolution or supplemental indenture provides
otherwise, in accordance with this Article.

     If the Company wants to redeem Securities pursuant to Paragraph 4 of the Securities,
it shall notify the Trustee in writing of the redemption date and the principal amount of
Securities to be redeemed. Any such notice may be cancelled at any time prior to notice of such
redemption being mailed to Holders. Any such cancelled notice shall be void and of no effect.

     If the Company wants to credit any Securities previously redeemed, retired or acquired against
any redemption pursuant to Paragraph 5 of the Securities, it shall notify the Trustee of
the amount of the credit and it shall deliver any Securities not previously delivered to the
Trustee for cancellation with such notice.

     The Company shall give each notice provided for in this Section 3.01 at least 30 days
before the notice of any such redemption is to be mailed to Holders (unless a shorter notice shall
be satisfactory to the Trustee).

 

- 14 -

Section 3.02. Selection of Securities to be Redeemed.

     If fewer than all of the Securities of a Series are to be redeemed, the Trustee shall select
the Securities to be redeemed by a method the Trustee considers fair and appropriate and in a
manner that complies with applicable requirements of the Depositary. The Trustee shall make the
selection from Securities outstanding not previously called for redemption and shall promptly
notify the Company of the serial numbers or other identifying attributes of the Securities so
selected. The Trustee may select for redemption portions of the principal of Securities that have
denominations larger than the minimum denomination for the Series. Securities and portions of them
it selects shall be in amounts equal to a permissible denomination for the Series. Provisions of
this Indenture that apply to Securities called for redemption also apply to portions of Securities
called for redemption.

Section 3.03. Notice of Redemption.

     At least 30 days but not more than 60 days before a redemption date, the Company shall mail a
notice of redemption by first-class mail, postage prepaid, to each Holder of Securities to be
redeemed.

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

	 	(1)	 	the redemption date;
	 
	 	(2)	 	the redemption price or the formula pursuant to which such price will be
calculated;
	 
	 	(3)	 	if any Security is being redeemed in part, the portion of the principal amount
of such Security to be redeemed and that, after the redemption date, upon surrender of
such Security, a new Security or Securities in principal amount equal to the unredeemed
portion shall be issued upon cancellation of the original Security;
	 
	 	(4)	 	the name and address of the Paying Agent;
	 
	 	(5)	 	that Securities called for redemption must be surrendered to the Paying Agent
to collect the redemption price;
	 
	 	(6)	 	that interest on Securities called for redemption ceases to accrue on and after
the redemption date; and
	 
	 	(7)	 	that the Securities are being redeemed pursuant to the mandatory redemption or
the optional redemption provisions, as applicable.

     At the Company’s request, the Trustee shall give the notice of redemption in the Company’s
name and at its expense; provided, however, that the Company shall deliver to the Trustee at least
15 days prior to the date on which notice of redemption is to be mailed or such shorter period as
may be satisfactory to the Trustee, an Officers’ Certificate requesting that the Trustee give such
notice and setting forth the information to be stated in such notice as provided in the preceding
paragraph.

Section 3.04. Effect of Notice of Redemption.

     Once notice of redemption is mailed, Securities called for redemption become due and payable
on the redemption date and at the redemption price as set forth in the notice of redemption. Upon
surrender to the Paying Agent, such Securities shall be paid at the redemption price, plus accrued
and unpaid interest to the redemption date.

Section 3.05. Deposit of Redemption Price.

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

 

- 15 -

Section 3.06. Securities Redeemed in Part.

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

ARTICLE FOUR

COVENANTS

Section 4.01. Payment of Securities.

     The Company shall pay the principal of and interest on a Series on the dates and in the manner
provided in the Securities of the Series. An installment of principal or interest shall be
considered paid on the date it is due if the Paying Agent holds on that date money designated for
and sufficient to pay the installment.

     The Company shall pay interest on overdue principal at the rate borne by the Series; it shall
pay interest on overdue installments of interest at the same rate.

Section 4.02. Maintenance of Office or Agency.

     The Company shall maintain the office or agency required under Section 2.03. The
Company shall give prior written notice to the Trustee of the location, and any change in the
location, of such office or agency. If at any time the Company 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 address of the Trustee.

Section 4.03. Compliance Certificate.

     The Company shall deliver to the Trustee within 120 days after the end of each fiscal year of
the Company an Officers’ Certificate stating whether or not the signers know of any continuing
Default by the Company in performing any of its obligations under this Indenture. If they do know
of such a Default, the certificate shall describe the Default.

Section 4.04. Payment of Taxes; Maintenance of Corporate Existence; Maintenance of
Properties.

     The Company will:

     (a) cause to be paid and discharged all lawful taxes, assessments and governmental charges or
levies imposed upon the Company and the Guarantors or upon the income or profits of the Company and
the Guarantors or upon Property or any part thereof belonging to the Company and the Guarantors
before the same shall be in default, as well as all lawful claims for labor, materials and supplies
which, if unpaid, might become a lien or charge upon such Property or any part thereof; provided,
however, that the Company shall not be required to cause to be paid or discharged any such tax,
assessment, charge, levy or claim so long as the validity or amount thereof shall be contested in
good faith by appropriate proceedings and the nonpayment thereof does not, in the judgment of the
Company, materially adversely affect the ability of the Company and the Guarantors to pay all
obligations under this Indenture when due; and provided further that the Company shall not be
required to cause to be paid or discharged any such tax, assessment, charge, levy or claim if, in
the judgment of the Company, such payment shall not be advantageous to the Company in the conduct
of its business and if the failure so to pay or discharge does not, in its judgment, materially
adversely affect the ability of the Company and the Guarantors to pay all obligations under this
Indenture when due;

     (b) cause to be done all things necessary to preserve and keep in full force and effect the
corporate existence of the Company and each of the Guarantors and to comply with all applicable
laws; provided, however, that nothing in this paragraph (b) shall prevent a consolidation
or merger of the Company or any Guarantor not

 

- 16 -

prohibited by the provisions of Article Five, Article Nine or any other
provision of this Indenture pertaining to a Series, and the Company may discontinue the corporate
existence of any Guarantor, or fail to comply with any such applicable laws, if, in the Company’s
judgment, such discontinuance or non-compliance does not materially adversely affect the ability of
the Company and the Guarantors to pay all obligations under this Indenture when due; and

     (c) at all times keep, maintain and preserve all the Property of the Company and the
Guarantors in good repair, working order and condition (reasonable wear and tear excepted) and from
time to time make all needful and proper repairs, renewals, replacements, betterments and
improvements thereto, so that the business carried on in connection therewith may be properly and
advantageously conducted at all times; provided, however, that nothing in this paragraph
(c) shall prevent the Company from discontinuing the operation and maintenance of any such
properties if such discontinuance, in the judgment of the Company, does not materially adversely
affect the ability of the Company and the Guarantors to pay all obligations under this Indenture
when due.

Section 4.05. Additional Guarantors.

     If (a) any Subsidiary that is not a Guarantor shall guarantee any (i) Indebtedness of the
Company outstanding under any of the Major Credit Facilities or (ii) Publicly Traded Debt
Securities, or (b) the Company elects to add any Subsidiary as a Guarantor, then such Subsidiary
shall (i) execute and deliver to the Trustee a supplemental indenture in form reasonably
satisfactory to the Trustee pursuant to which such Subsidiary shall unconditionally guarantee all
of the Company’s obligations under the Securities of each Series (other than a Series that,
pursuant to the applicable supplemental indenture or Authorizing Resolution, does not have the
benefit of Guarantees of other Subsidiaries of the Company) and under this Indenture (as it relates
to all such Series) on the terms set forth in this Indenture and (ii) deliver to the Trustee an
Opinion of Counsel that such supplemental indenture has been duly authorized, executed and
delivered by such Subsidiary and constitutes a legal, valid, binding and enforceable obligation of
such Subsidiary. Thereafter, such Subsidiary shall be a Guarantor for all purposes of this
Indenture (as it relates to all such Series) until it is released from its obligations as a
Guarantor pursuant to the provisions of this Indenture.

Section 4.06. Waiver of Stay, Extension or Usury Laws.

     The Company and the Guarantors covenant (to the extent that they may lawfully do so) that they
will not at any time insist upon, plead, or in any manner whatsoever claim or take the benefit or
advantage of, any stay or extension law or any usury law or other law that would prohibit or
forgive the Company or any Guarantor from paying all or any portion of the principal of or interest
on the Securities of any Series as contemplated herein, wherever enacted, now or at any time
hereafter in force, or which may affect the covenants or the performance of this Indenture; and (to
the extent that it may lawfully do so) the Company and each of the Guarantors expressly waives all
benefit or advantage of any such law, and covenants that it will not hinder, delay or impede the
execution of any power herein granted to the Trustee, but will suffer and permit the execution of
every such power as though no such law had been enacted.

ARTICLE FIVE

SUCCESSOR CORPORATION

Section 5.01. When Company May Merge, etc.

     Neither the Company nor any Guarantor will consolidate or merge with or into, or sell, lease,
convey or otherwise dispose of all or substantially all of its assets (including by way of
liquidation or dissolution), to any Person (in each case other than in a transaction in which the
Company or a Guarantor is the survivor of a consolidation or merger, or the transferee in a sale,
lease, conveyance or other disposition) unless:

     (1) the Person formed by or surviving such consolidation or merger (if other than the
Company or the Guarantor, as the case may be), or to which such sale, lease, conveyance or
other disposition will be made (collectively, the “Successor”), is a corporation or other
legal entity organized and

 

- 17 -

existing under the laws of the United States or any state thereof or the District of
Columbia, and the Successor assumes by supplemental indenture in a form reasonably
satisfactory to the Trustee all of the obligations of the Company or the Guarantor, as the
case may be, under the Securities or a Guarantee, as the case may be, and the Indenture, and

     (2) immediately after giving effect to such transaction, no Default or Event of Default
has occurred and is continuing.

     The foregoing provisions shall not apply to:

     (A) the consolidation or merger of a Guarantor, or the sale, lease, conveyance
or other disposition of all or substantially all of the assets of a Guarantor, which
under the provisions of Section 9.03 or the other provisions of this
Indenture, results in such Guarantor being released from its Guarantee or the
Successor not being required to become a Guarantor, as the case may be, or

     (B) a transaction the purpose of which is to change the state of incorporation
of the Company or any Guarantor.

     Upon any such consolidation, merger, sale, lease, conveyance or other disposition, the
Successor will be substituted for the Company or the relevant Guarantor under the Indenture. The
Successor may then exercise every power and right of the Company or the relevant Guarantor under
this Indenture, and except in the case of a lease, the Company or the relevant Guarantor will be
released from all of its liabilities and obligations in respect of the Securities, the Guarantee
and the Indenture. If the Company or a Guarantor leases all or substantially all of its assets the
Company or such Guarantor will not be released from its obligations to pay the principal of and
premium, if any, and interest, if any, on the Securities or the Guarantee, as applicable.

ARTICLE SIX

DEFAULTS AND REMEDIES

Section 6.01. Events of Default.

     An “Event of Default” on a Series occurs if, voluntarily or involuntarily, whether by
operation of law or otherwise, any of the following occurs:

	 	(1)	 	the failure by the Company to pay interest on any Security of such Series when
the same becomes due and payable and the continuance of any such failure for a period
of 30 days (whether or not such payment is prohibited by Article Eleven or
Article Twelve hereof);
	 
	 	(2)	 	the failure by the Company to pay the principal or premium of any Security of
such Series when the same becomes due and payable at maturity, upon acceleration or
otherwise (whether or not such payment is prohibited by Article Eleven or
Article Twelve hereof);
	 
	 	(3)	 	the failure by the Company or any Guarantor to comply with any of its
agreements or covenants in, or provisions of, the Securities of such Series, the
Guarantees (as they relate thereto) or this Indenture (as they relate thereto) and such
failure continues for the period and after the notice specified below (except in the
case of a default with respect to Article Five (or any other provision
specified in the applicable supplemental indenture or Authorizing Resolution), which
will constitute Events of Default with notice but without passage of time);
	 
	 	(4)	 	the acceleration of any Indebtedness (other than Non-Recourse Indebtedness) of
the Company or any Guarantor that has an outstanding principal amount of $50 million or
more, individually or in the aggregate, and such acceleration does not cease to exist,
or such Indebtedness is not satisfied, in either case within 30 days after such
acceleration;

 

- 18 -

	 	(5)	 	the failure by the Company or any Guarantor to make any principal or interest
payment in an amount of $50 million or more, individually or in the aggregate, in
respect of Indebtedness (other than Non-Recourse Indebtedness) of the Company or any
Guarantor within 30 days of such principal or interest becoming due and payable (after
giving effect to any applicable grace period set forth in the documents governing such
Indebtedness);
	 
	 	(6)	 	the Company or any Guarantor that is a Significant Subsidiary pursuant to or
within the meaning of any Bankruptcy Law:

	 	(A)	 	commences a voluntary case,
	 
	 	(B)	 	consents to the entry of an order for relief against it in an
involuntary case,
	 
	 	(C)	 	consents to the appointment of a Custodian of it or for all or
substantially all of its Property, or
	 
	 	(D)	 	makes a general assignment for the benefit of its creditors;

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

	 	(A)	 	is for relief against the Company or any Guarantor that is a
Significant Subsidiary as debtor in an involuntary case,
	 
	 	(B)	 	appoints a Custodian of the Company or any Guarantor that is a
Significant Subsidiary or a Custodian for all or substantially all of the
Property of the Company or any Guarantor that is a Significant Subsidiary, or
	 
	 	(C)	 	orders the liquidation of the Company or any Guarantor that is
a Significant Subsidiary,

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

	 	(8)	 	 any Guarantee of a Guarantor that is a Significant Subsidiary ceases to be in
full force and effect (other than in accordance with the terms of such Guarantee and
this Indenture) or is declared null and void and unenforceable or found to be invalid
or any Guarantor denies its liability under its Guarantee (other than by reason of
release of a Guarantor from its Guarantee in accordance with the terms of this
Indenture and the Guarantee).

     A Default as described in subclause (3) above will not be deemed an Event of Default
until the Trustee notifies the Company, or the Holders of at least 25 percent in principal amount
of the then outstanding Securities of the applicable Series notify the Company and the Trustee, of
the Default and (except in the case of a default with respect to Article Five (or any other
provision specified in the applicable supplemental indenture or Authorizing Resolution)) the
Company does not cure the Default within 60 days after receipt of the notice. The notice must
specify the Default, demand that it be remedied and state that the notice is a “Notice of Default.”
If such a Default is cured within such time period, it ceases to exist, without any action by the
Trustee or any other Person.

     The term “Custodian” means any receiver, trustee, assignee, liquidator, custodian or similar
official under any Bankruptcy Law.

Section 6.02. Acceleration.

     If an Event of Default (other than an Event of Default with respect to the Company resulting
from subclause (6) or (7) above), shall have occurred and be continuing under the
Indenture, the Trustee by notice to the Company, or the Holders of at least 25 percent in principal
amount of the Securities of the applicable Series then outstanding by notice to the Company and the
Trustee, may declare all Securities of such Series to be due and payable immediately. Upon such
declaration of acceleration, the amounts due and payable on the Securities of such

 

- 19 -

Series will be due and payable immediately. If an Event of Default with respect to the
Company specified in subclauses (6) or (7) above occurs, all amounts due and
payable on the Securities of such Series will ipso facto become and be immediately due and payable
without any declaration, notice or other act on the part of the Trustee and the Company or any
Holder.

     Holders of a majority in principal amount of the then outstanding Securities of such Series
may rescind an acceleration with respect to such Series and its consequence (except an acceleration
due to nonpayment of principal or interest) if the rescission would not conflict with any judgment
or decree and if all existing Events of Default (other than the non-payment of accelerated
principal) have been cured or waived.

     No such rescission shall extend to or shall affect any subsequent Event of Default, or shall
impair any right or power consequent thereon.

Section 6.03. Other Remedies.

     If an Event of Default on a Series occurs and is continuing, the Trustee may pursue any
available remedy by proceeding at law or in equity to collect the payment of principal of or
interest on the Series or to enforce the performance of any provision in the Securities or this
Indenture applicable to the Series.

     The Trustee may maintain a proceeding even if it does not possess any of the Securities or
does not produce any of them in the proceeding. A delay or omission by the Trustee or any
Securityholder in exercising any right or remedy accruing upon an Event of Default shall not impair
the right or remedy or constitute a waiver of or acquiescence in the Event of Default. No remedy
is exclusive of any other remedy. All available remedies are cumulative.

Section 6.04. Waiver of Existing Defaults.

     Subject to Section 10.02, the Holders of a majority in principal amount of the
outstanding Securities of a Series on behalf of all the Holders of the Series by notice to the
Trustee may waive an existing Default on such Series and its consequences. When a Default is
waived, it is cured and stops continuing, and any Event of Default arising therefrom shall be
deemed to have been cured; but no such waiver shall extend to any subsequent or other Default or
impair any right consequent thereon.

Section 6.05. Control by Majority.

     The Holders of a majority in principal amount of the outstanding Securities of a Series may
direct the time, method and place of conducting any proceeding for any remedy available to the
Trustee or exercising any trust or power conferred on it with respect to such Series. The Trustee,
however, may refuse to follow any direction (i) that conflicts with law or this Indenture, (ii)
that, subject to Section 7.01, the Trustee determines is unduly prejudicial to the rights
of other Securityholders, (iii) that would involve the Trustee in personal liability, if there
shall be reasonable grounds for believing that adequate indemnity against such liability is not
reasonably assured to it, or (iv) if the Trustee shall not have been provided with indemnity
satisfactory to it.

Section 6.06. Limitation on Suits.

     A Securityholder of a Series may not pursue any remedy with respect to this Indenture or the
Series unless:

	 	(1)	 	the Holder gives to the Trustee written notice of a continuing Event of Default
on the Series;
	 
	 	(2)	 	the Holders of at least a majority in principal amount of the outstanding
Securities of the Series make a written request to the Trustee to pursue the remedy;
	 
	 	(3)	 	such Holder or Holders offer to the Trustee indemnity satisfactory to the
Trustee against any loss, liability or expense;

 

- 20 -

	 	(4)	 	the Trustee does not comply with the request within 60 days after receipt of
the request and the offer of indemnity; and
	 
	 	(5)	 	no written request inconsistent with such written request shall have been given
to the Trustee pursuant to this Section 6.06.

     A Securityholder may not use this Indenture to prejudice the rights of another Holder of
Securities of the same Series or to obtain a preference or priority over another Holder of
Securities of the same Series.

Section 6.07. Rights of Holders to Receive Payment.

     Notwithstanding any other provision of this Indenture, the right of any Holder to receive
payment of principal of and interest on any Security, on or after the respective due dates
expressed in the Security, or to bring suit for the enforcement of any such payment on or after
such respective dates, is absolute and unconditional and shall not be impaired or affected without
the consent of the Holder.

Section 6.08. Collection Suit by Trustee.

     If an Event of Default in payment of interest or principal specified in Section
6.01(1) or (2) occurs and is continuing, the Trustee may recover judgment in its own
name and as trustee of an express trust against the Company for the whole amount of principal and
interest remaining unpaid.

Section 6.09. Trustee May File Proofs of Claim.

     The Trustee may file such proofs of claim and other papers or documents as may be necessary or
advisable in order to have the claims of the Trustee (including any claim for the reasonable
compensation, expenses, disbursements, and advances of the Trustee, its agents and counsel) and the
Securityholders allowed in any judicial proceedings relative to the Company, any Guarantor or their
respective creditors or Property, and unless prohibited by applicable law or regulation, may vote
on behalf of the Holders in any election of a Custodian, and shall be entitled and empowered to
collect and receive any moneys or other Property payable or deliverable on any such claims and to
distribute the same and any Custodian in any such judicial proceeding is hereby authorized by each
Securityholder to make such payments to the Trustee. Nothing herein shall be deemed to authorize
the Trustee to authorize or consent to or vote for or accept or adopt on behalf of any
Securityholder any plan of reorganization, arrangement, adjustment or composition affecting the
Securities or the rights of any Holder or to authorize the Trustee to vote in respect of the claim
of any Securityholder except as aforesaid for the election of the Custodian.

Section 6.10. Priorities.

     If the Trustee collects any money pursuant to this Article with respect to Securities of any
Series, it shall pay out the money in the following order:

	 	 	 	 	 
	 

	 	First:
	 	to the Trustee for amounts due under Section 7.07;
	 
	 	 	 	 
	 

	 	Second:
	 	to Securityholders of the Series for amounts due and unpaid on the Series for
principal and interest, ratably, without preference or priority of any kind, according
to the amounts due and payable on the Series for principal and interest, respectively;
and
	 
	 	 	 	 
	 

	 	Third:
	 	to the Company or the Guarantors as their interests may appear.

     The Trustee may fix a record date and payment date for any payment to Securityholders pursuant
to this Section 6.10.

 

- 21 -

Section 6.11. Undertaking for Costs.

     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, a court in its discretion may
require the filing by any party litigant in the suit of an undertaking to pay the costs of the
suit, and the court in its discretion may assess reasonable costs, including reasonable attorneys’
fees, against any party litigant in the suit, having the due regard to the merits and good faith of
the claims or defenses made by the party litigant. This Section does not apply to a suit by the
Trustee, a suit by a Holder pursuant to Section 6.07 or a suit by Holders of more than 10%
in principal amount of the Series.

ARTICLE SEVEN

TRUSTEE

Section 7.01. Duties of Trustee.

     (a) If an Event of Default has occurred and is continuing with respect to Securities of any
Series, the Trustee shall, prior to the receipt of directions from the Holders of a majority in
principal amount of the Securities of the Series, exercise its rights and powers and use the same
degree of care and skill in their exercise as a prudent man would exercise or use under the
circumstances in the conduct of his own affairs.

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

     (1) The Trustee need perform only those duties that are specifically set forth in this
Indenture and no others and no implied covenants or obligations shall be read into this
Indenture against the Trustee.

     (2) In the absence of bad faith on its part, the Trustee may conclusively rely, as to
the truth of the statements and the correctness of the opinions expressed therein, upon
certificates or opinions furnished to the Trustee and conforming to the requirements of this
Indenture. The Trustee, however, shall examine the certificates and opinions to determine
whether or not they conform to the requirements of this Indenture but need not confirm or
investigate the accuracy of mathematical calculations or other facts or matters stated
therein.

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

     (1)
This paragraph does not limit the effect of paragraph (b) of this Section.

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

     (3)

The Trustee shall not be liable with respect to any action it takes or omits to
take in good faith in accordance with a direction received by it pursuant to Section
6.05 or any other direction of the Holders permitted hereunder.

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

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

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

 

- 22 -

     (g) None of the provisions contained in this Indenture shall require the Trustee to expend or
risk its own funds or otherwise incur financial liability in the performance of any of its duties
or in the exercise of any of its rights or powers, if there shall be reasonable grounds for
believing that the repayment of such funds or adequate indemnity against such liability is not
reasonably assured to it.

Section 7.02. Rights of Trustee.

     Subject to Section 7.01:

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

     (b) Before the Trustee acts or refrains from acting, it may require an Officers’ Certificate
or an Opinion of Counsel or both, which shall conform to Sections 13.04 and 13.05
hereof and containing such other statements as the Trustee reasonably deems necessary to perform
its duties hereunder. The Trustee shall not be liable for any action it takes or omits to take in
good faith in reliance on the Officers’ Certificate, Opinion of Counsel or any other direction of
the Company permitted hereunder.

     (c) The Trustee may act through agents and shall not be responsible for the misconduct or
negligence of any agent appointed with due care.

     (d) The Trustee shall not be liable for any action taken, suffered or omitted by it in good
faith and believed by it to be authorized or within the discretion or rights or powers conferred
upon it by this Indenture.

     (e) The Trustee may consult with counsel, and the written advice of such counsel or any
Opinion of Counsel as to matters of law shall be full and complete authorization and protection in
respect of any action taken, omitted or suffered by it hereunder in good faith and in accordance
with the advice or opinion of such counsel.

     (f) Unless otherwise specifically provided in the Indenture, any demand, request, direction or
notice from the Company or a Guarantor shall be sufficient if signed by an Officer of the Company
or a Guarantor.

     (g) For all purposes under this Indenture, the Trustee shall not be deemed to have notice or
knowledge of any Event of Default (other than under Section 6.01(1) or 6.01(2))
unless a Trust Officer assigned to and working in the Trustee’s corporate trust office has actual
knowledge thereof or unless written notice of any Event of Default is received by the Trustee at
its address specified in Section 13.02 hereof and such notice references the Securities
generally, the Company or this Indenture.

Section 7.03. Individual Rights of Trustee.

     The Trustee in its individual or any other capacity may become the owner or pledgee of
Securities and may otherwise deal with the Company or any Guarantor or their affiliates with the
same rights it would have if it were not Trustee. Any Agent may do the same with like rights. The
Trustee, however, must comply with Sections 7.10 and 7.11.

Section 7.04. Trustee’s Disclaimer.

     The Trustee makes no representation as to the validity or adequacy of this Indenture, the
Securities or of any prospectus used to sell the Securities of any Series; it shall not be
accountable for the Company’s use of the proceeds from the Securities; it shall not be accountable
for any money paid to the Company, or upon the Company’s direction, if made under and in accordance
with any provision of this Indenture; it shall not be responsible for the use or application of any
money received by any Paying Agent other than the Trustee; and it shall not be responsible for any
statement of the Company or any Guarantor in this Indenture or in the Securities other than its
certificate of authentication.

 

- 23 -

Section 7.05. Notice of Defaults.

     If a Default on a Series occurs and is continuing and if it is known to the Trustee, the
Trustee shall mail to each Securityholder of the Series notice of the Default (which shall specify
any uncured Default known to it) within 90 days after it occurs, provided that in the case of any
Default specified in Section 6.01(4) or (5), no such notice to Securityholders
shall be given until at least the end of the 30 day grace period referred to therein. Except in
the case of a default in payment of principal of or interest on a Series, the Trustee may withhold
the notice if and so long as the board of directors of the Trustee, the executive or any trust
committee of such directors and/or responsible officers of the Trustee in good faith determine(s)
that withholding the notice is in the interests of Holders of the Series.

Section 7.06. Reports by Trustee to Holders.

     Within 60 days after each May 15 beginning with the May 15 following the date of this Base
Indenture, the Trustee shall mail to each Securityholder a brief report dated as of such May 15
that complies with TIA § 313(a) (but if no event described in TIA § 313(1) through (8) has occurred
within the twelve months preceding the reporting date no report in relation thereto need be
transmitted). The Trustee also shall comply with TIA § 313(b).

     A copy of each report at the time of its mailing to Securityholders shall be delivered to the
Company and filed by the Trustee with the SEC and each national securities exchange on which the
Securities are listed. The Company agrees to notify the Trustee of each national securities
exchange on which the Securities are listed.

Section 7.07. Compensation and Indemnity.

     The Company shall pay to the Trustee from time to time reasonable compensation for their
respective services subject to any written agreement between the Trustee and the Company. The
Company shall reimburse the Trustee upon request for all reasonable out-of-pocket expenses incurred
by it. Such expenses shall include the reasonable compensation and expenses of the Trustee’s
agents and counsel. The Company shall indemnify the Trustee, its officers, directors, employees
and agents and hold it harmless against any loss, liability or expense incurred or made by or on
behalf of it in connection with the administration of this Indenture or the trust hereunder and its
duties hereunder including the costs and expenses of defending itself against or investigating any
claim in the premises. The Trustee shall notify the Company promptly of any claim for which it may
seek indemnity. The Company need not reimburse any expense or indemnify against any loss or
liability incurred by the Trustee through the Trustee’s, or its officers’, directors’, employees’
or agents’ negligence or bad faith.

     Unless otherwise provided in any supplemental indenture or Authorizing Resolution relating to
any Series, to ensure the Company’s payment obligations in this Section, the Trustee shall have a
claim prior to the Securities of all Series on all money or Property held or collected by the
Trustee, except that held in trust to pay principal of or interest on particular Securities. When
the Trustee incurs expenses or renders services in connection with an Event of Default specified in
Section 6.01 or in connection with Article Six hereof, the expenses (including the
reasonable fees and expenses of its counsel) and the compensation for services in connection
therewith are to constitute expenses of administration under any Bankruptcy Law.

Section 7.08. Replacement of Trustee.

     The Trustee may resign with respect to Securities of any or all Series by so notifying the
Company. The Holders of a majority in principal amount of the outstanding Securities (or of the
relevant Series) may remove the Trustee by so notifying the removed Trustee in writing and may
appoint a successor trustee with the Company’s consent. Such resignation or removal shall not take
effect until the appointment by the Securityholders of the relevant Series or the Company as
hereinafter provided of a successor trustee and the acceptance of such appointment by such
successor trustee. The Company may remove the Trustee and any Securityholder may petition any
court of competent jurisdiction for the removal of the Trustee and the appointment of a successor
trustee for any or no reason, including if:

 

- 24 -

	 	(1)	 	the Trustee fails to comply with Section 7.10 after written request by
the Company or any bona fide Securityholder who has been a Securityholder for at least
six months;
	 
	 	(2)	 	the Trustee is adjudged a bankrupt or an insolvent;
	 
	 	(3)	 	a receiver or other public officer takes charge of the Trustee or its Property;
or
	 
	 	(4)	 	the Trustee becomes incapable of acting.

     If the Trustee resigns or is removed or if a vacancy exists in the office of Trustee for any
reason, the Company shall promptly appoint a successor trustee with respect to the Securities of
the relevant Series. If a successor trustee does not take office within 45 days after the retiring
Trustee resigns or is removed, the retiring Trustee, the Company or any Holder may petition any
court of competent jurisdiction for the appointment of a successor trustee.

     A successor trustee shall deliver a written acceptance of its appointment to the retiring
Trustee and to the Company. Immediately after that, the retiring Trustee shall transfer all
Property held by it as Trustee to the successor trustee, 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. A successor trustee shall mail notice of its
succession to each Securityholder.

Section 7.09. Successor Trustee by Merger, etc.

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

Section 7.10. Eligibility; Disqualification.

     This Indenture shall always have a Trustee who satisfies the requirements of TIA § 310(a)(1).
The Trustee shall have a combined capital and surplus of at least $10,000,000 as set forth in its
most recent published annual report of condition. The Trustee shall comply with TIA § 310(b).

Section 7.11. Preferential Collection of Claims Against Company.

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

ARTICLE EIGHT

DISCHARGE OF INDENTURE

Section 8.01. Defeasance upon Deposit of Moneys or U.S. Government Obligations.

     (a) The Company may, at its option and at any time, elect to have either paragraph (b)
or paragraph (c) below be applied to the outstanding Securities of any Series upon
compliance with the applicable conditions set forth in paragraph (d).

     (b) Upon the Company’s exercise under paragraph (a) of the option applicable to this
paragraph (b) with respect to any Series, the Company and the Guarantors shall be deemed to
have been released and discharged from their respective obligations with respect to the outstanding
Securities of the Series on the date the applicable conditions set forth below are satisfied
(hereinafter, “Legal Defeasance”). For this purpose, such Legal Defeasance means that the Company
shall be deemed to have paid and discharged the entire Indebtedness represented by the outstanding
Securities of a Series, which shall thereafter be deemed to be “outstanding” only for the purposes
of the Sections and matters under this Indenture referred to in (i) and (ii) below, and the Company
and the Guarantors shall

 

- 25 -

be deemed to have satisfied all their other obligations under such Securities and this
Indenture insofar as such Securities are concerned, except for the following which shall survive
until otherwise terminated or discharged hereunder: (i) the rights of Holders of outstanding
Securities of a Series to receive solely from the trust fund described in paragraph (d)
below and as more fully set forth in such paragraph, payments in respect of the principal of and
interest on such Securities when such payments are due and (ii) obligations listed in Section
8.02, subject to compliance with this Section 8.01. The Company may exercise its
option under this paragraph (b) with respect to a Series notwithstanding the prior exercise
of its option under paragraph (c) below with respect to the Securities of the Series.

     (c) Upon the Company’s exercise under paragraph (a) of the option applicable to this
paragraph (c) with respect to a Series, the Company and the Guarantors shall be released
and discharged from the obligations under any covenant contained in Article Five and
Sections 4.04 (but only to the extent it applies to Guarantors), 4.05 and any other
covenant contained in or referenced in the Authorizing Resolution or supplemental indenture
relating to such Series (to the extent such release and discharge shall not be prohibited thereby),
on and after the date the conditions set forth below are satisfied (hereinafter, “Covenant
Defeasance”), and the Securities of such Series shall thereafter be deemed to be not “outstanding”
for the purpose of any direction, waiver, consent or declaration or act of Holders (and the
consequences of any thereof) in connection with such covenants, but shall continue to be deemed
“outstanding” for all other purposes hereunder. For this purpose, such Covenant Defeasance means
that, with respect to the outstanding Securities of a Series, the Company may omit to comply with
and shall have no liability in respect of any term, condition or limitation set forth in any such
covenant, whether directly or indirectly, by reason of any reference elsewhere herein to any such
covenant or by reason of any reference in any such covenant to any other provision herein or in any
other document and such omission to comply shall not constitute a Default or an Event of Default
under Section 6.01(3) or otherwise, but, except as specified above, the remainder of this
Indenture and such Securities shall be unaffected thereby.

     (d) The following shall be the conditions to application of either paragraph (b) or
paragraph (c) above to the outstanding Securities of the applicable Series:

     (1) The Company shall have irrevocably deposited in trust with the Trustee (or another
qualifying trustee), pursuant to an irrevocable trust and security agreement in form and
substance reasonably satisfactory to the Trustee, money in U.S. dollars or U.S. government
obligations or a combination thereof in such amounts and at such times as are sufficient, in
the opinion of a nationally recognized firm of independent public accountants, to pay the
principal of and interest on the outstanding Securities of such Series to maturity or
redemption; provided, however, that the Trustee (or other qualifying trustee) shall have
received an irrevocable written order from the Company instructing the Trustee (or other
qualifying trustee) to apply such money or the proceeds of such U.S. government obligations
to said payments with respect to the Securities of such Series to maturity or redemption;

     (2) No Default or Event of Default (other than a Default or Event of Default resulting
from non-compliance with any covenant from which the Company and the Guarantors are released
upon effectiveness of such Legal Defeasance or Covenant Defeasance pursuant to paragraph
(b) or (c) hereof, as applicable) shall have occurred and be continuing on the
date of such deposit or result therefrom;

     (3) Such deposit will not result in a breach or violation of, or constitute a default
under, any Senior Indebtedness or Guarantor Senior Indebtedness or other material instrument
or agreement to which the Company or any of any of the Guarantors is a party or by which it
or any of their Property is bound;

     (4) (i) In the event the Company elects paragraph (b) hereof, the Company shall
deliver to the Trustee an Opinion of Counsel in the United States, in form and substance
reasonably satisfactory to the Trustee, to the effect that (A) the Company has received
from, or there has been published by, the Internal Revenue Service a ruling or (B) since the
Issue Date pertaining to such Series, 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 state that, or (ii) in the event the Company elects paragraph (c) hereof, the
Company shall deliver to the Trustee an Opinion of Counsel in the United States, in form and
substance reasonably satisfactory to the Trustee, to the effect that, in the case of
clauses (i) and (ii), and subject to customary assumptions and exclusions,
Holders of the Securities of such Series will not recognize income, gain or loss

 

- 26 -

for federal income tax purposes as a result of such deposit and the defeasance
contemplated hereby and will be subject to federal income tax in the same amounts and in the
same manner and at the same times as would have been the case if such deposit and defeasance
had not occurred;

     (5) The Company shall have delivered to the Trustee an Officers’ Certificate, stating
that the deposit under clause (1) was not made by the Company with the intent of
preferring the Holders of the Securities of such Series over any other creditors of the
Company or with the intent of defeating, hindering, delaying or defrauding any other
creditors of the Company or any Guarantor or others;

     (6) the Company shall have delivered to the Trustee an Opinion of Counsel (subject to
customary assumptions and qualifications) to the effect that, assuming no intervening
bankruptcy of the Company or any Guarantor between the date of deposit and the
123rd day following the deposit and assuming that no Holder is an “insider” of
the Company under applicable Bankruptcy Law, after the 123rd day following the
deposit, the trust funds shall not be subject to the effect of Section 547 of the United
States Bankruptcy Code or any analogous New York State law provision; and

     (7) The Company has delivered to the Trustee an Officers’ Certificate and an Opinion of
Counsel, each stating that all conditions precedent specified herein relating to the
defeasance contemplated by this Section 8.01 have been complied with.

     In the event all or any portion of the Securities of a Series are to be redeemed through such
irrevocable trust, the Company must make arrangements satisfactory to the Trustee, at the time of
such deposit, for the giving of the notice of such redemption or redemptions by the Trustee in the
name and at the expense of the Company.

     (e) In addition to the Company’s rights above under this Section 8.01, the Company may
terminate all of its obligations under this Indenture with respect to a Series, and the obligations
of the Guarantors shall terminate with respect to such Series (subject to Section 8.02),
when:

     (1) All Securities of such Series theretofore authenticated and delivered (other than
Securities which have been destroyed, lost or stolen and which have been replaced or paid as
provided in Section 2.07 and Securities for whose payment money has theretofore been
deposited in trust or segregated and held in trust by the Company and thereafter repaid to
the Company or discharged from such trust) have been delivered to the Trustee for
cancellation or all such Securities not theretofore delivered to the Trustee for
cancellation (A) have become due and payable, (B) will become due and payable at maturity
within one year or (C) are to be called for redemption within one year under arrangements
satisfactory to the Trustee for the giving of notice of redemption by the Trustee in the
name, and at the expense, of the Company, and in each such case, the Company has irrevocably
deposited or caused to be deposited with the Trustee (or another qualifying trustee) as
trust funds in trust solely for that purpose an amount in U.S. dollars or U.S. government
obligations or a combination thereof sufficient, in the opinion of a nationally recognized
firm of independent public accountants, to pay and discharge the entire Indebtedness on the
Securities of such Series not theretofore delivered to the Trustee for cancellation, for
principal of and interest on the Securities of such Series, on the date of such deposit or
to the maturity or redemption date, as the case may be;

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

     (3) The Company has delivered irrevocable instructions to the Trustee (or such other
qualifying trustee), to apply the deposited money toward the payment of the Securities of
such Series at maturity or redemption, as the case may be; and

     (4) The Company has delivered to the Trustee an Officers’ Certificate and an Opinion of
Counsel, stating that all conditions precedent specified in this Section 8.01(e)
relating to the satisfaction and discharge of this Indenture have been complied with.

 

- 27 -

Section 8.02. Survival of the Company’s Obligations.

     Notwithstanding the satisfaction and discharge of this Indenture under Section 8.01,
the Company’s obligations in Paragraph 9 of the Securities and Sections 2.03
through 2.07, 4.01, 7.07, 7.08, 8.04 and 8.05,
however, shall survive until the Securities of an applicable Series are no longer outstanding.
Thereafter, the Company’s obligations in Paragraph 9 of the Securities of such Series and
Sections 7.07, 8.04 and 8.05 shall survive (as they relate to such Series).

Section 8.03. Application of Trust Money.

     The Trustee shall hold in trust money or U.S. government obligations deposited with it
pursuant to Section 8.01. It shall apply the deposited money and the money from U.S.
government obligations in accordance with this Indenture to the payment of principal of and
interest on the Securities of the defeased Series.

Section 8.04. Repayment to the Company.

     The Trustee and the Paying Agent shall promptly pay to the Company upon request any excess
money or securities held by them at any time. The Trustee and the Paying Agent shall pay to the
Company upon request any money held by them for the payment of principal or interest that remains
unclaimed for two years, provided, however, that the Trustee or such Paying Agent, before being
required to make any such repayment, may at the expense of the Company cause to be published once
in a newspaper of general circulation in the City of New York or mail to each such Holder notice
that such money remains unclaimed and that, after a date specified therein, which shall not be less
than 30 days from the date of such publication or mailing, any unclaimed balance of such money then
remaining will be repaid to the Company. After payment to the Company, Securityholders entitled to
the money must look to the Company or any Guarantor for payment as general creditors unless
applicable abandoned property law designates another person and all liability of the Trustee or
such Paying Agent with respect to such money shall cease.

Section 8.05. Reinstatement.

     If the Trustee is unable to apply any money or U.S. government obligations in accordance with
Section 8.01 by reason of any legal proceeding or by reason of any order or judgment of any
court or governmental authority enjoining, restraining or otherwise prohibiting such application,
the Company’s and each Guarantor’s obligations under this Indenture and the Securities relating to
the Series shall be revived and reinstated as though no deposit had occurred pursuant to
Section 8.01 until such time as the Trustee is permitted to apply all such money or U.S.
government obligations in accordance with Section 8.01; provided, however, that (a) if the
Company or any Guarantor has made any payment of interest on or principal of any Securities of the
Series because of the reinstatement of its obligations hereunder, the Company or Guarantor shall be
subrogated to the rights of the Holders of such Securities to receive such payment from the money
or U.S. government obligations held by the Trustee and (b) unless otherwise required by any legal
proceeding or any order or judgment of any court or governmental authority, the Trustee shall
return all such money or U.S. government obligations to the Company promptly after receiving a
written request therefor at any time, if such reinstatement of the Company’s or Guarantor’s
obligations has occurred and continues to be in effect.

ARTICLE NINE

GUARANTEES

Section 9.01. Unconditional Guarantees.

     Subject to any other provisions set forth in the Authorizing Resolution or supplemental
indenture relating to a particular Series, each Guarantor unconditionally, jointly and severally,
guarantees (each such guarantee to be referred to herein as the “Guarantee”) to each Holder of
Securities of such Series authenticated and delivered by the Trustee and to the Trustee and its
successors and assigns, that: (i) the principal of and interest on the Securities of such Series
will be promptly paid in full when due, subject to any applicable grace period, whether at
maturity, by

 

- 28 -

acceleration or otherwise and interest on the overdue principal, if any, and interest on any
interest of the Securities of such Series and all other obligations of the Company to the Holders
or the Trustee hereunder or thereunder, except obligations to pay principal of and interest on any
other Series not so guaranteed, will be promptly paid in full or performed, all in accordance with
the terms hereof and thereof; and (ii) in case of any extension of time of payment or renewal of
any Securities of such Series or of any such other obligations, the same will be promptly paid in
full when due or performed in accordance with the terms of the extension or renewal, subject to any
applicable grace period, whether at stated maturity, by acceleration or otherwise, subject,
however, in the case of clauses (i) and (ii) above, to the limitations set forth in
Section 9.04. Each Guarantor agrees that its obligations hereunder shall be unconditional,
irrespective of the validity, regularity or enforceability of the Securities of such Series or this
Indenture, the absence of any action to enforce the same, any waiver or consent by any Holder of
the Securities of such Series with respect to any provisions hereof or thereof, the recovery of any
judgment against the Company, any action to enforce the same or any other circumstance which might
otherwise constitute a legal or equitable discharge or defense of a guarantor. Each Guarantor
waives diligence, presentment, demand of payment, filing of claims with a court in the event of
insolvency or bankruptcy of the Company, any right to require a proceeding first against the
Company, protest, notice and all demands whatsoever and covenants that, subject to Section
9.03, this Guarantee will not be discharged except by complete performance of the obligations
contained in the Securities of the applicable Series, this Indenture and in this Guarantee. If any
Holder or the Trustee is required by any court or otherwise to return to the Company, any
Guarantor, or any custodian, trustee, liquidator or other similar official acting in relation to
the Company or any Guarantor, any amount paid by the Company or any Guarantor to the Trustee or
such Holder, this Guarantee, to the extent theretofore discharged, shall be reinstated in full
force and effect. Each Guarantor further agrees that, as between each Guarantor, on the one hand,
and the Holders and the Trustee, on the other hand, (x) the maturity of the obligations guaranteed
hereby may be accelerated as provided in Article Six for the purposes of this Guarantee,
notwithstanding any stay, injunction or other prohibition preventing such acceleration in respect
of the obligations guaranteed hereby, and (y) in the event of any acceleration of such obligations
as provided in Article Six, such obligations (whether or not due and payable) shall
forthwith become due and payable by each Guarantor for the purpose of this Guarantee.

Section 9.02. Severability.

     In case any provision of this Guarantee 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 9.03. Release of a Guarantor.

     Notwithstanding anything in this Indenture to the contrary, in the event of (i) the sale or
other disposition of Capital Stock of any Guarantor if as a result of such disposition, such Person
ceases to be a Subsidiary of the Company, (ii) a sale or other disposition of all or substantially
all of the assets of any Guarantor (other than to the Company or another Guarantor), (iii) a merger
or consolidation of a Guarantor with a Person other than the Company or another Guarantor, or (iv)
a Guarantor ceasing to guarantee any (a) Indebtedness of the Company outstanding under any of the
Major Credit Facilities and (b) Publicly Traded Debt Securities, then such Guarantor (in the case
of clauses (i), (ii) and (iv) above) will be automatically and
unconditionally released and discharged from all obligations under this Article Nine, the
other provisions of this Indenture and the Securities and the Person acquiring such assets (in the
case of clauses (ii) and (iii) above) shall not be required to assume the
Guarantor’s obligations under this Article Nine, the other provisions of this Indenture and
the Securities or otherwise become a Guarantor, in each case without any further action required on
the part of the Trustee, any Holder, the Company or any Guarantor; provided that such sale,
disposition or other transaction is otherwise in compliance with this Indenture.

     Nothing contained in this Indenture or in any of the Securities shall prevent any
consolidation or merger of a Guarantor with or into the Company or another Guarantor, or shall
prevent any sale, lease, conveyance or other disposition of all or substantially assets of a
Guarantor to the Company or another Guarantor. Upon any such consolidation, merger, or
disposition, the Guarantee given by such Guarantor shall no longer have any force or effect.

 

- 29 -

     The Trustee shall deliver an appropriate instrument evidencing any such release upon receipt
of a request by the Company accompanied by an Officers’ Certificate and Opinion of Counsel
certifying as to the compliance with this Section 9.03.

     Any Guarantor not released in accordance with this Section 9.03 remains liable for the
full amount of principal of and interest on the Securities as provided in this Article
Nine, except as provided in Article Eight.

Section 9.04. Limitation of a Guarantor’s Liability.

     Each Guarantor and by its acceptance hereof each Holder confirms that it is the intention of
all such parties that the guarantee by such Guarantor pursuant to its Guarantee not constitute a
fraudulent transfer or conveyance for purposes of the Bankruptcy Law, the Uniform Fraudulent
Conveyance Act, the Uniform Fraudulent Transfer Act or any similar Federal or state law. To
effectuate the foregoing intention, the Holders and such Guarantor irrevocably agree that the
obligations of such 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 Guarantor and after
giving effect to any collections from or payments made by or on behalf of any other Guarantor in
respect of the obligations of such other Guarantor under its Guarantee or pursuant to Section
9.05, result in the obligations of such Guarantor under the Guarantee not constituting such
fraudulent transfer or conveyance.

Section 9.05. Contribution.

     In order to provide for just and equitable contribution among the Guarantors, the Guarantors
agree, inter se, that in the event any payment or distribution is made by any Guarantor (a “Funding
Guarantor”) under the Guarantee, such Funding Guarantor shall be entitled to a contribution from
all other Guarantors in a pro rata amount based on the Adjusted Net Assets of each Guarantor
(including the Funding Guarantor) for all payments, damages and expenses incurred by that Funding
Guarantor in discharging the Company’s obligations with respect to any Securities or any other
Guarantor’s obligations with respect to its Guarantee. “Adjusted Net Assets” of such Guarantor at
any date shall mean the lesser of the amount by which (x) the fair value of the Property of
such Guarantor exceeds the total amount of liabilities, including contingent liabilities (after
giving effect to all other fixed and contingent liabilities incurred or assumed on such date and
after giving effect to any collection from any other Subsidiary of the Guarantor in respect of the
obligations of its Guarantee), but excluding liabilities under the Guarantee, of such Guarantor at
such date and (y) the present fair salable value of the assets of such Guarantor at such date
exceeds the amount that will be required to pay the probable liability of such Guarantor on its
debts (after giving effect to all other fixed and contingent liabilities incurred or assumed on
such date and after giving effect to any collection from any other Subsidiary of the Company in
respect of the obligations of such Guarantor under its Guarantee), excluding debt in respect of the
Guarantee of such Guarantor, as they become absolute and matured.

Section 9.06. Waiver of Subrogation.

     Until all guaranteed obligations under this Indenture and with respect to all Securities of an
applicable Series are paid in full, each Guarantor irrevocably waives any claim or other rights
which it may now or hereafter acquire against the Company that arise from the existence, payment,
performance or enforcement of such Guarantor’s obligations under the Guarantee and this Indenture,
including any right of subrogation, reimbursement, exoneration, indemnification, and any right to
participate in any claim or remedy of any Holder of Securities of the applicable Series against the
Company, whether or not such claim, remedy or right arises in equity, or under contract, statute or
common law, including the right to take or receive from the Company, directly or indirectly, in
cash or other Property or by set-off or in any other manner, payment or security on account of such
claim or other rights. If any amount shall be paid to any Guarantor in violation of the preceding
sentence and the Securities of the applicable Series shall not have been paid in full, such amount
shall have been deemed to have been paid to such Guarantor for the benefit of, and held in trust
for the benefit of, the Holders of the Securities of the applicable Series, and shall forthwith be
paid to the Trustee for the benefit of such Holders to be credited and applied upon the Securities
of the applicable Series, whether matured or unmatured, in accordance with the terms of this
Indenture. Each Guarantor acknowledges that it will receive direct and indirect benefits from the
financing arrangements contemplated by this Indenture and that the waiver set forth in this
Section 9.06 is knowingly made in contemplation of such benefits.

 

- 30 -

Section 9.07. Execution of Guarantee.

     To evidence their guarantee to the Holders set forth in this Article Nine with respect to any
Series, the Guarantors shall execute the Guarantee in substantially the form included in Exhibit A
or in any such other form set forth in the Authorizing Resolution or supplemental indenture
pertaining to the applicable Series, which shall be endorsed on each Security ordered to be
authenticated and delivered by the Trustee. Each Guarantor agrees that its Guarantee set forth in
this Article Nine shall remain in full force and effect notwithstanding any failure to endorse on
each Security a notation of such Guarantee. Each such Guarantee shall be signed on behalf of each
Guarantor by one Officer (who shall, in each case, have been duly authorized by all requisite
corporate or other actions) shall attest to such Guarantee prior to the authentication of the
Security on which it is endorsed, and the delivery of such Security by the Trustee, after the
authentication thereof hereunder, shall constitute due delivery of such Guarantee on behalf of such
Guarantor. Such signature upon the Guarantee may be by manual or facsimile signature of such
officer and may be imprinted or otherwise reproduced on the Guarantee, and in case any such officer
who shall have signed the Guarantee shall cease to be such officer before the Security on which
such Guarantee is endorsed shall have been authenticated and delivered by the Trustee or disposed
of by the Company, such Security nevertheless may be authenticated and delivered or disposed of as
though the person who signed the Guarantee had not ceased to be such officer of the Guarantor.

ARTICLE TEN

AMENDMENTS, SUPPLEMENTS AND WAIVERS

Section 10.01. Without Consent of Holders.

     The Company, the Guarantors and the Trustee may amend or supplement this Indenture or the
Securities of a Series without notice to or consent of any Securityholder of such Series:

     (1) to cure any ambiguity, omission, defect or inconsistency;

     (2) to comply with Article Five;

     (3) to provide that specific provisions of this Indenture shall not apply to a Series
not previously issued or to make a change to specific provisions of this Indenture that only
applies to any Series not previously issued or to additional Securities of a Series not
previously issued;

     (4) to create a Series and establish its terms;

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

     (6) to release a Guarantor in respect of any Series which, in accordance with the terms
of this Indenture applicable to the particular Series, ceases to be liable in respect of its
Guarantee;

     (7) to add a Guarantor in respect of any Series;

     (8) to comply with requirements of the SEC in order to effect or maintain the
qualification of this Indenture under the TIA; and

     (9) to make any other change that does not adversely affect the rights of
Securityholders.

     After an amendment under this Section 10.01 becomes effective, the Company shall mail
notice of such amendment to the Securityholders.

 

- 31 -

Section 10.02. With Consent of Holders.

     The Company, the Guarantors and the Trustee may amend or supplement this Indenture or the
Securities of a Series without notice to any Securityholder of such Series but with the written
consent of the Holders of at least a majority in principal amount of the outstanding Securities of
each Series affected by the amendment (including consents obtained in connection with a purchase
of, or tender offer or exchange offer for, Securities of such Series). Each such Series shall vote
as a separate class. The Holders of a majority in principal amount of the outstanding Securities
of any Series may waive compliance by the Company with any provision of the Securities of such
Series or of this Indenture relating to such Series without notice to any Securityholder (including
any waiver granted in connection with a purchase of, or tender offer or exchange offer for,
Securities of such Series). Without the consent of each Holder of a Security affected thereby,
however, an amendment, supplement or waiver, including a waiver pursuant to Section 6.04,
may not:

	 	(1)	 	reduce the amount of Securities of the relevant Series whose Holders must
consent to an amendment, supplement or waiver;
	 
	 	(2)	 	reduce the rate of or change the time for payment of interest, including
defaulted interest, on any Security;
	 
	 	(3)	 	reduce the principal of or change the fixed maturity of any Security or alter
the provisions (including related definitions) with respect to redemption of any
Security pursuant to Article Three hereof or with respect to any obligations on
the part of the Company to offer to purchase or to redeem Securities of a Series
pursuant to the Authorizing Resolution or supplemental indenture pertaining to such
Series;
	 
	 	(4)	 	modify the ranking or priority of the Securities of the relevant Series or any
Guarantee thereof or amend or modify the definition of Senior Indebtedness and
Guarantor Senior Indebtedness or amend or modify Article Eleven or Article
Twelve in any manner adverse to the Holders of such Securities;
	 
	 	(5)	 	release any Guarantor from any of its obligations under its Guarantee or this
Indenture otherwise than in accordance with the terms of this Indenture;
	 
	 	(6)	 	make any change in Sections 6.04, 6.07 or this Section
10.02;
	 
	 	(7)	 	waive a continuing Default or Event of Default in the payment of the principal
of or interest on any Security; or
	 
	 	(8)	 	make any Security payable at a place or in money other than that stated in the
Security, or impair the right of any Securityholder to bring suit as permitted by
Section 6.07.

     An amendment of a provision included solely for the benefit of one or more Series does not
affect the interests of Securityholders of any other Series.

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

     No amendment of, or supplement or waiver to, this Indenture shall adversely affect the rights
of any holder of Senior Indebtedness or Guarantor Senior Indebtedness under Article Eleven
or Article Twelve (including related definitions), without the consent of the
Representative of such Senior Indebtedness or Guarantor Senior Indebtedness.

 

- 32 -

Section 10.03. Compliance with Trust Indenture Act.

     Every amendment to or supplement of this Indenture or any Securities shall comply with the TIA
as then in effect.

Section 10.04. Revocation and Effect of Consents.

     A consent to an amendment, supplement or waiver by a Holder shall bind the Holder and every
subsequent Holder of a Security or portion of a Security that evidences the same debt as the
consenting Holder’s Security, even if notation of the consent is not made on any Security. Unless
otherwise provided in the consent or the consent solicitation statement or other document
describing the terms of the consent, any Holder or subsequent Holder may revoke the consent as to
its Security or portion of a Security. Any revocation of a consent by the Holder of a Security or
any such subsequent Holder shall be effective only if the Trustee receives the notice of revocation
before the date on which the Trustee receives an Officers’ Certificate from the Company certifying
that the requisite number of consents have been received.

     The Company may, but shall not be obligated to, fix a record date for the purpose of
determining the Holders of Securities of any Series entitled to consent to any amendment,
supplement or waiver, which record date shall be at least 10 days prior to the first solicitation
of such consent. If a record date is fixed, and if Holders otherwise have a right to revoke their
consent under the consent or the consent solicitation statement or other document describing the
terms of the consent, then notwithstanding the second to last sentence of the immediately preceding
paragraph, those Persons who were Holders at such record date (or their duly designated proxies),
and only those Persons, shall be entitled to revoke any consent previously given, whether or not
such Persons continue to be Holders after such record date. No such consent shall be valid or
effective for more than 90 days after such record date.

     An amendment, supplement or waiver with respect to a Series becomes effective upon the (i)
receipt by the Company or the Trustee of the requisite consents, (ii) satisfaction of any
conditions to effectiveness as set forth in this Indenture or any indenture supplemental hereto
containing such amendment, supplement or waiver and (iii) execution of such amendment, supplement
or waiver (or the related supplemental indenture) by the Company and the Trustee. After an
amendment, supplement or waiver with respect to a Series becomes effective, it shall bind every
Holder of such Series, unless it makes a change described in any of clauses (1) through
(8) of Section 10.02, in which case, the amendment, supplement or waiver shall bind
a Holder of a Security who is affected thereby only if it has consented to such amendment,
supplement or waiver and every subsequent Holder of a Security or portion of a Security that
evidences the same debt as the consenting Holder’s Security; provided that no such waiver shall
impair or affect the right of any Holder to receive payment of principal of and interest on a
Security, on or after the respective due dates expressed in such Security, or to bring suit for the
enforcement of any such payment on or after such respective dates without the consent of such
Holder.

Section 10.05. Notation on or Exchange of Securities.

     If an amendment, supplement or waiver changes the terms of a Security, the Company may require
the Holder of the Security to deliver it to the Trustee, at which time the Trustee shall place an
appropriate notation on the Security about the changed terms and return it to the Holder.
Alternatively, if the Company or the Trustee so determines, the Company in exchange for the
Security shall issue and the Trustee shall authenticate a new Security that reflects the changed
terms.

Section 10.06. Trustee to Sign Amendments, etc.

     Subject to Section 7.02(b), the Trustee shall sign any amendment, supplement or waiver
authorized pursuant to this Article if the amendment, supplement or waiver does not adversely
affect the rights, duties, liabilities or immunities of the Trustee. If it does, the Trustee may
but need not sign it. In signing or refusing to sign such amendment or supplemental indenture, the
Trustee shall be entitled to receive and shall be fully protected in relying upon, an Officers’
Certificate and an Opinion of Counsel as conclusive evidence that such amendment,

 

- 33 -

supplement or waiver is authorized or permitted by this Indenture, that it is not inconsistent
herewith, and that it will be valid and binding upon the Company and any Guarantors in accordance
with its terms.

ARTICLE ELEVEN

SUBORDINATION OF SECURITIES

Section 11.01. Securities Subordinated to Senior Indebtedness.

     The Company covenants and agrees, and the Trustee and each Holder of the Securities by his
acceptance thereof likewise covenant and agree, that all Securities shall be issued subject to the
provisions of this Article Eleven; and each person holding any Security, whether upon
original issue or upon transfer, assignment or exchange thereof, accepts and agrees that all
payments of the principal of and interest on the Securities by the Company shall, to the extent and
in the manner set forth in this Article Eleven, be subordinated and junior in right of
payment to the prior payment in full in cash of all Senior Indebtedness, whether outstanding on the
date of this Indenture or thereafter incurred.

     Each Holder of Securities by his acceptance of such Securities acknowledges and agrees that
the following subordination provisions in this Article Eleven are, and are intended to be,
an inducement and consideration to each holder of Senior Indebtedness, whether such Senior
Indebtedness was created or acquired before or after the issuance of such Securities, to acquire
and continue to hold, or to continue to hold, such Senior Indebtedness, and such holder of Senior
Indebtedness shall be deemed conclusively to have relied on such subordination provisions in
acquiring and continuing to hold, or in continuing to hold, such Senior Indebtedness.

Section 11.02. No Payment on Securities in Certain Circumstances.

     (a) No direct or indirect payment by or on behalf of the Company of principal or premium of,
or interest on or to purchase, redeem or defease the Securities, whether pursuant to the terms of
the Securities, upon acceleration or otherwise, shall be made if, at the time of such payment,
there exists a default in the payment of all or any portion of the obligations on any Senior
Indebtedness, whether at maturity, on account of mandatory redemption or prepayment or purchase,
acceleration or otherwise, that continues beyond any applicable period of grace, and such default
shall not have been cured or waived or the benefits of this sentence waived by or on behalf of the
holders of such Senior Indebtedness. In addition, during the continuance of any non-payment event
of default with respect to any Designated Senior Indebtedness pursuant to which the maturity
thereof may be immediately accelerated, and upon receipt by the Trustee of written notice (a
“Payment Blockage Notice”) from the Representative of such Designated Senior Indebtedness, then no
direct or indirect payment shall be made by or on behalf of the Company of principal or premium of,
or interest on or to purchase, redeem or defease the Securities, during a period (a “Payment
Blockage Period”) commencing on the date of receipt of such notice by the Trustee and ending on the
earliest of (1) the date on which all such non-payment events of default are cured or waived, (2)
179 days after the date on which the applicable Payment Blockage Notice is received and (3) the
date on which the Trustee receives notice from the Representative of such Designated Senior
Indebtedness rescinding the Payment Blockage Notice, unless the maturity of any Designated Senior
Indebtedness has been accelerated.

     Notwithstanding anything in this subordination provision or in the Securities to the contrary,
(x) in no event shall a Payment Blockage Period extend beyond 179 days from the date the Payment
Blockage Notice in respect thereof was given, (y) there shall be a period of at least 181
consecutive days in each 360-day period when no Payment Blockage Period is in effect and (z) not
more than one Payment Blockage Period may be commenced with respect to the Securities during any
period of 360 consecutive days. However, if the Payment Blockage Notice is not given on behalf of
creditors under a Credit Facility, the Representative of such Credit Facility may, subject to the
limitations set forth in clause (y) of the preceding sentence, give one additional notice
during the Payment Blockage Period. No non-payment event of default that existed or was continuing
on the date of commencement of any Payment Blockage Period with respect to the Designated Senior
Indebtedness initiating such Payment Blockage Period may be, or be made, the basis for the
commencement of any other Payment Blockage Period by the Representative of such Designated Senior
Indebtedness, whether or not within a period of 360 consecutive days, unless such event of default
has been cured or waived for a period of not less than 90 consecutive days. Any (i) subsequent
action that causes a default pursuant to any provision that was previously the subject of a Payment

 

- 34 -

Blockage Notice, or (ii) breach of any financial covenant for a period ending after a period
as to which a breach previously occurred that was the subject of a Payment Blockage Notice, will
constitute a new default for this purpose.

     (b) In the event that, notwithstanding the foregoing, any payment shall be received by the
Trustee or any Holder when such payment is prohibited by Section 11.02(a), such payment
shall be held in trust for the benefit of, and shall be paid over or delivered to, the holders of
Senior Indebtedness (pro rata to such holders on the basis of the respective amounts of Senior
Indebtedness held by such holders) or their respective representatives, or to the trustee or
trustees under any indenture pursuant to which any of such Senior Indebtedness may have been
issued, as their respective interests may appear, but only to the extent that, upon notice from the
Trustee to the holders of Senior Indebtedness that such prohibited payment has been made, the
Representative of the Senior Indebtedness notify the Trustee in writing of the amounts then due and
owing on the Senior Indebtedness, if any, and only the amounts specified in such notice to the
Trustee shall be paid to the holders of Senior Indebtedness.

     (c) The foregoing Section 11.02(a) and (b) shall not apply to (i) issuances of
Permitted Junior Securities or (ii) payments and distributions made from a trust established
pursuant to Article Eight hereof, so long as (x) the conditions specified in Article
Eight (without any waiver or modification of the requirement that the deposits pursuant thereto
do not conflict with the terms of any Senior Indebtedness or Guarantor Senior Indebtedness) are
satisfied on the date of any deposit pursuant to said trust and (y) such deposits did not violate
the provisions of this Article Eleven when made.

Section 11.03. Payment Over of Proceeds upon Dissolution, etc.

     (a) Upon any payment or distribution of assets or securities of the Company of any kind or
character, whether in cash, property or securities (excluding any payment or distribution of
Permitted Junior Securities), upon any dissolution or winding up or liquidation or reorganization
of the Company, whether voluntary or involuntary or in bankruptcy, insolvency, receivership or
other proceedings, all Senior Indebtedness will first be paid in full in cash before the Holders of
the Securities or the Trustee on behalf of such Holders will be entitled to receive any payment by
the Company of the principal of or interest on the Securities, or any payment by the Company to
acquire any of the Securities for cash, property or securities, or any distribution with respect to
the Securities of any cash, property or securities (excluding any payment or distribution of
Permitted Junior Securities). Before any payment may be made by, or on behalf of, the Company of
the principal of, or interest on the Securities upon any such dissolution or winding up or
liquidation or reorganization, any payment or distribution of assets or securities of the Company
of any kind or character, whether in cash, property or securities (excluding any payment or
distribution of Permitted Junior Securities), to which the Holders of the Securities or the Trustee
on their behalf would be entitled, but for the subordination provisions of this Indenture, will be
made by the Company or by any receiver, trustee in bankruptcy, liquidation trustee, agent or other
Person making such payment or distribution, directly to the holders of the Senior Indebtedness (pro
rata to such holders on the basis of the respective amounts of Senior Indebtedness held by such
holders) or their respective Representatives on behalf of such holders of Senior Indebtedness, as
their respective interests may appear, to the extent necessary to pay all such Senior Indebtedness
in full in cash after giving effect to any prior or concurrent payment, distribution or provision
therefor to or for the holders of such Senior Indebtedness.

     (b) To the extent any payment of Senior Indebtedness (whether by or on behalf of the Company,
as proceeds of security or enforcement of any right of setoff or otherwise) is declared to be
fraudulent or preferential, set aside or required to be paid to any receiver, trustee in
bankruptcy, liquidating trustee, agent or other similar Person under any bankruptcy, insolvency,
receivership, fraudulent conveyance or similar law, then, if such payment is recovered by, or paid
over to, such receiver, trustee in bankruptcy, liquidating trustee, agent or other similar Person,
the Senior Indebtedness or part thereof originally intended to be satisfied shall be deemed to be
reinstated and outstanding as if such payment had not occurred.

     (c) In the event that, notwithstanding the foregoing provision prohibiting such payment or
distribution, any payment or distribution of assets or securities of the Company of any kind or
character, whether in cash, property or securities (excluding any payment or distribution of
Permitted Junior Securities), shall be received by the Trustee or any Holder of Securities at a
time when such payment or distribution is prohibited by Section 11.03(a) and before all
obligations in respect of Senior Indebtedness are paid in full in cash, or payment provided for,
such payment or distribution shall be received and held in trust for the benefit of, and shall be
paid

 

- 35 -

over or delivered to, the holders of Senior Indebtedness (pro rata to such holders on the basis of the
respective amounts of Senior Indebtedness held by such holders) or their respective Representatives
on behalf of such holders of Senior Indebtedness, as their respective interests may appear, for
application to the payment of Senior Indebtedness remaining unpaid until all such Senior
Indebtedness has been paid in full in cash after giving effect to any prior or concurrent payment,
distribution or provision therefor to or for the holders of such Senior Indebtedness.

     The consolidation of the Company with, or the merger of the Company with or into, another
corporation or the liquidation or dissolution of the Company following the conveyance or transfer
of its property as an entirety, or substantially as an entirety, to another corporation upon the
terms and conditions provided in Article Five (or any replacement provisions as
contemplated by Article Five) shall not be deemed a dissolution, winding up, liquidation or
reorganization for the purposes of this Section 11.03 if such other corporation shall, as a
part of such consolidation, merger, conveyance or transfer, comply with the conditions stated in
Article Five (or any replacement provisions as contemplated by Article Five).

Section 11.04. Subrogation.

     Upon the payment in full of all Senior Indebtedness, or provision for payment, the Holders of
the Securities shall be subrogated to the rights of the holders of Senior Indebtedness to receive
payments or distributions of cash, property or securities of the Company made on such Senior
Indebtedness until the principal of and interest on the Securities shall be paid in full in cash;
and, for the purposes of such subrogation, no payments or distributions to the holders of the
Senior Indebtedness of any cash, property or securities to which the Holders of the Securities or
the Trustee on their behalf would be entitled except for the provisions of this Article
Eleven, and no payment over pursuant to the provisions of this Article Eleven to the
holders of Senior Indebtedness by Holders of the Securities or the Trustee on their behalf shall,
as between the Company, its creditors other than holders of Senior Indebtedness, and the Holders of
the Securities, be deemed to be a payment by the Company to or on account of the Senior
Indebtedness. It is understood that the provisions of this Article Eleven are and are
intended solely for the purpose of defining the relative rights of the Holders of the Securities,
on the one hand, and the holders of the Senior Indebtedness, on the other hand.

     If any payment or distribution to which the Holders of the Securities would otherwise have
been entitled but for the provisions of this Article Eleven shall have been applied,
pursuant to the provisions of this Article Eleven, to the payment of all amounts payable
under Senior Indebtedness, then and in such case, the Holders of the Securities shall be entitled
to receive from the holders of such Senior Indebtedness any payments or distributions received by
such holders of Senior Indebtedness in excess of the amount required to make payment in full, or
provision for payment, of such Senior Indebtedness.

Section 11.05. Obligations of Company Unconditional.

     Nothing contained in this Article Eleven or elsewhere in this Indenture or in the
Securities is intended to or shall impair, as among the Company and the Holders of the Securities,
the obligation of the Company, which is absolute and unconditional, to pay to the Holders of the
Securities the principal of and interest on the Securities as and when the same shall become due
and payable in accordance with their terms, or is intended to or shall affect the relative rights
of the Holders of the Securities and creditors of the Company other than the holders of the Senior
Indebtedness, nor shall anything herein or therein prevent the Holder of any Security or the
Trustee on its behalf from exercising all remedies otherwise permitted by applicable law upon
default under this Indenture, subject to the rights, if any, under this Article Eleven of
the holders of the Senior Indebtedness in respect of cash, property, assets or securities of the
Company received upon the exercise of any such remedy.

     Without limiting the generality of the foregoing, nothing contained in this Article
Eleven shall restrict the right of the Trustee or the Holders of Securities to take any action
to declare the Securities to be due and payable prior to their stated maturity pursuant to
Section 6.02 or to pursue any rights or remedies hereunder; provided, however, that all
Senior Indebtedness then due and payable shall first be paid in full before the Holders of the
Securities or the Trustee is entitled to receive any direct or indirect payment from the Company of
principal of or interest on the Securities.

 

- 36 -

Section 11.06. Notice to Trustee.

     The Company shall give prompt written notice to the Trustee of any fact known to the Company
which would prohibit the making of any payment to or by the Trustee in respect of the Securities
pursuant to the provisions of this Article Eleven, although any delay or failure to give
any such notice shall have no effect on the subordination provisions contained herein. Regardless
of anything to the contrary contained in this Article Eleven, the Trustee shall not be
charged with knowledge of the existence of any event of default with respect to any Senior
Indebtedness or of any other facts which would prohibit the making of any payment to or by the
Trustee unless and until the Trustee shall have received notice in writing at its corporate trust
office to that effect signed by an Officer of the Company, or by a holder of Senior Indebtedness or
a Representative therefor; and prior to the receipt of any such written notice, the Trustee shall,
subject to Article Seven, be entitled to assume (in the absence of actual knowledge to the
contrary) that no such facts exist; provided that if the Trustee shall not have received the notice
provided for in this Section 11.06 at least two Business Days prior to the date upon which
by the terms of this Indenture any moneys shall become payable for any purpose (including, without
limitation, the payment of the principal of or interest on any Security), then, regardless of
anything herein to the contrary, the Trustee shall have full power and authority to receive any
moneys from the Company and to apply the same to the purpose for which they were received, and
shall not be affected by any notice to the contrary which may be received by it on or after such
prior date. Nothing contained in this Section 11.06 shall limit the right of the holders
of Senior Indebtedness to recover payments as contemplated by Section 11.03. The Trustee
shall be entitled to rely on the delivery to it of a written notice by a Person representing
himself or itself to be a holder of any Senior Indebtedness (or a trustee on behalf of, or other
representative of, such holder) to establish that such notice has been given by a holder of such
Senior Indebtedness or a trustee or representative on behalf of any such holder.

     In the event that the Trustee determines in good faith that any evidence is required with
respect to the right of any Person as a holder of Senior Indebtedness to participate in any payment
or distribution pursuant to this Article Eleven, the Trustee may request such Person to
furnish evidence to the reasonable satisfaction of the Trustee as to the amount of Senior
Indebtedness held by such Person, the extent to which such Person is entitled to participate in
such payment or distribution and any other facts pertinent to the rights of such Person under this
Article Eleven, and if such evidence is not furnished, the Trustee may defer any payment to
such Person pending judicial determination as to the right of such Person to receive such payment.

Section 11.07. Reliance on Judicial Order or Certificate of Liquidating Agent.

     Upon any payment or distribution of assets or securities referred to in this Article
Eleven, the Trustee, subject to the provisions of Article Seven hereof, and the Holders
of the Securities shall be entitled to rely upon any order or decree made by any court of competent
jurisdiction in which any insolvency, bankruptcy, dissolution, winding-up, liquidation or
reorganization proceedings are pending, or upon a certificate of the receiver, trustee in
bankruptcy, liquidating trustee, agent or other person making such payment or distribution,
delivered to the Trustee or to the Holders of the Securities for the purpose of ascertaining the
persons entitled to participate in such distribution, the holders of the Senior Indebtedness and
other indebtedness of the Company, the amount thereof or payable thereon, the amount or amounts
paid or distributed thereon and all other facts pertinent thereto or to this Article
Eleven.

Section 11.08. Trustee’s Relation to Senior Indebtedness.

     The Trustee and any Paying Agent shall be entitled to all the rights set forth in this
Article Eleven with respect to any Senior Indebtedness which may at any time be held by it
in its individual or any other capacity to the same extent as any other holder of Senior
Indebtedness, and nothing in this Indenture shall deprive the Trustee or any Paying Agent of any of
its rights as such holder.

     With respect to the holders of Senior Indebtedness, the Trustee undertakes to perform or to
observe only such of its covenants and obligations as are specifically set forth in this
Article Eleven, and no implied covenants or obligations with respect to the holders of
Senior Indebtedness shall be read into this Indenture against the Trustee. The Trustee shall not
be deemed to owe any fiduciary duty to the holders of Senior Indebtedness (except as provided in
Section 11.03(b)). Whenever a distribution is to be made or a notice given to holders or
owners of Senior Indebtedness, the distribution may be made and the notice may be given to their
Representative, if any. The Trustee

 

- 37 -

shall not be liable to any such holders if the Trustee shall in good faith mistakenly pay over
or distribute to Holders of Securities or to the Company or to any other person cash, property or
securities to which any holders of Senior Indebtedness shall be entitled by virtue of this
Article Eleven or otherwise.

Section 11.09. Subordination Rights Not Impaired by Acts or Omissions of the Company or Holders
of Senior Indebtedness. 

     No right of any present or future holders of any Senior Indebtedness to enforce subordination
as provided herein shall at any time in any way be prejudiced or impaired by any act or failure to
act on the part of the Company or by any act or failure to act, in good faith, by any such holder,
or by any noncompliance by the Company with the terms of this Indenture, regardless of any
knowledge thereof which any such holder may have or otherwise be charged with. The provisions of
this Article Eleven are intended to be for the benefit of, and shall be enforceable
directly by, the holders of Senior Indebtedness.

Section 11.10. Securityholders Authorize Trustee to Effectuate Subordination of Securities.

     Each Holder of Securities by his acceptance of such Securities authorizes and expressly
directs the Trustee on his behalf to take such action as may be necessary or appropriate to
effectuate the subordination provided in this Article Eleven, and appoints the Trustee his
attorney-in-fact for such purposes, including, in the event of any dissolution, winding-up,
liquidation or reorganization of the Company (whether in bankruptcy, insolvency, receivership,
reorganization or similar proceedings or upon an assignment for the benefit of creditors or
otherwise) tending towards liquidation of the business and assets of the Company, the filing of a
claim for the unpaid balance of its or his Securities in the form required in those proceedings.

     If the Trustee does not file a proper claim or proof of debt in the form required in such
proceeding prior to 30 days before the expiration of the time to file such claim or claims, then
the holders of the Senior Indebtedness or their Representative are or is hereby authorized to have
the right to file and are or is hereby authorized to file an appropriate claim for and on behalf of
the Holders of said Securities. Nothing herein contained shall be deemed to authorize the Trustee
or the holders of Senior Indebtedness or their Representative to authorize or consent to or accept
or adopt on behalf of any Holder of Securities any plan of reorganization, arrangement, adjustment
or composition affecting the Securities or the rights of any Holder thereof, or to authorize the
Trustee or the holders of Senior Indebtedness or their Representative to vote in respect of the
claim of any Holder in any such proceeding.

Section 11.11. This Article Not to Prevent Events of Default.

     The failure to make a payment on account of principal of or interest on the Securities by
reason of any provision of this Article Eleven shall not be construed as preventing the
occurrence of an Event of Default specified in clause (1) or (2) of Section
6.01.

Section 11.12. Trustee’s Compensation Not Prejudiced.

     Nothing in this Article Eleven shall apply to amounts due to the Trustee pursuant to
other sections in this Indenture.

Section 11.13. No Waiver of Subordination Provisions.

     Without in any way limiting the generality of Section 11.09, the holders of Senior
Indebtedness may, at any time and from time to time, without the consent of or notice to the
Trustee or the Holders of the Securities, without incurring responsibility to the Holders of the
Securities and without impairing or releasing the subordination provided in this Article
Eleven or the obligations hereunder of the Holders of the Securities to the holders of Senior
Indebtedness, do any one or more of the following: (a) change the manner, place or terms of
payment or extend the time of payment of, or renew or alter, Senior Indebtedness or any instrument
evidencing the same or any agreement under which Senior Indebtedness is outstanding or secured; (b)
sell, exchange, release or otherwise deal with any property pledged, mortgaged or otherwise
securing Senior Indebtedness; (c) release any Person liable in any manner

 

- 38 -

for the collection of Senior Indebtedness; and (d) exercise or refrain from exercising any
rights against the Company and any other Person.

Section 11.14. Certain Payments May Be Paid Prior to Dissolution.

     All money and United States government obligations properly deposited in trust with the
Trustee pursuant to and in accordance with Article Eight shall be for the sole benefit of
the Holders and shall not be subject to this Article Eleven.

     Nothing contained in this Article Eleven or elsewhere in this Indenture shall prevent
(i) the Company, except under the conditions described in Section 11.02, from making
payments of principal of and interest on the Securities, or from depositing with the Trustee any
moneys for such payments or from effecting a termination of the Company’s and the Guarantors’
obligations under the Securities and this Indenture as provided in Article Eight, or (ii)
the application by the Trustee of any moneys deposited with it for the purpose of making such
payments of principal of on and interest on the Securities to the holders entitled thereto unless
at least two Business Days prior to the date upon which such payment becomes due and payable, the
Trustee shall have received the written notice provided for in Section 11.02(b) or in
Section 11.06. The Company shall give prompt written notice to the Trustee of any
dissolution, winding up, liquidation or reorganization of the Company.

ARTICLE TWELVE

SUBORDINATION OF GUARANTEES

Section 12.01. Guarantee Obligations Subordinated to Guarantor Senior Indebtedness.

     Each Guarantor covenants and agrees, and the Trustee and each Holder of the Securities by his
acceptance thereof likewise covenant and agree, that the Guarantee of such Guarantor shall be
issued subject to the provisions of this Article Twelve; and each person holding any
Security, whether upon original issue or upon transfer, assignment or exchange thereof, accepts and
agrees that all payments of the principal of, premium, if any, and interest on the Securities
pursuant to the Guarantee made by or on behalf of any Guarantor shall, to the extent and in the
manner set forth in this Article Twelve, be subordinated and junior in right of payment to
the prior payment in full in cash of all Guarantor Senior Indebtedness of such Guarantor, whether
outstanding on the date of this Indenture or thereafter incurred.

     Each Holder of Securities by his acceptance of such Securities, including the Guarantees,
acknowledges and agrees that the foregoing subordination provisions in this Article Twelve
are, and are intended to be, an inducement and consideration to each holder of Guarantor Senior
Indebtedness, whether such Guarantor Senior Indebtedness was created or acquired before or after
the issuance of the Guarantees, to acquire and continue to hold, or to continue to hold, such
Guarantor Senior Indebtedness, and such holder of Guarantor Senior Indebtedness shall be deemed
conclusively to have relied on such subordination provisions in acquiring and continuing to hold,
or in continuing to hold, such Guarantor Senior Indebtedness.

Section 12.02. No Payment on Guarantees in Certain Circumstances.

     (a) No direct or indirect payment by or on behalf of any Guarantor of principal or premium of,
or interest on or to purchase, redeem or defease the Securities, whether pursuant to the terms of
the Securities, upon acceleration or otherwise, shall be made if, at the time of such payment,
there exists a default in the payment of all or any portion of the obligations on any Guarantor
Senior Indebtedness of such Guarantor, whether at maturity, on account of mandatory redemption or
prepayment or purchase, acceleration or otherwise, that continues beyond any applicable period of
grace, and such default shall not have been cured or waived or the benefits of this sentence waived
by or on behalf of the holders of such Guarantor Senior Indebtedness. In addition, during the
continuance of any non-payment event of default with respect to any Designated Guarantor Senior
Indebtedness pursuant to which the maturity thereof may be immediately accelerated, and upon
receipt by the Trustee of written notice (the “Guarantor Payment Blockage Notice”) from the
Representative of such Designated Guarantor Senior Indebtedness, then no direct or indirect payment
shall be made by or on behalf of such Guarantor of principal or

 

- 39 -

premium of, or interest on or to purchase, redeem or defease the Securities, during a period
(a “Guarantor Blockage Period”) commencing on the date of receipt of such notice by the Trustee and
ending on the earliest of (1) the date on which all such non-payment events of default are cured or
waived, (2) 179 days after the date on which the applicable Guarantor Payment Blockage Notice is
received and (3) the date on which the Trustee receives notice from the Representative of such
Designated Guarantor Senior Indebtedness rescinding the Guarantor Payment Blockage Notice, unless
the maturity of any Designated Guarantor Senior Indebtedness has been accelerated.

     Notwithstanding anything in this subordination provision or in the Securities to the contrary,
(x) in no event shall a Guarantor Blockage Period extend beyond 179 days from the date the
Guarantor Payment Blockage Notice in respect thereof was given, (y) there shall be a period of at
least 181 consecutive days in each 360-day period when no Guarantor Blockage Period is in effect
and (z) not more than one Guarantor Blockage Period may be commenced with respect to any Guarantor
during any period of 360 consecutive days. However, if the Payment Blockage Notice is not given on
behalf of creditors under a Credit Facility, the Representative of such Credit Facility may,
subject to the limitations set forth in clause (y) of the preceding sentence, give one
additional notice during the Payment Blockage Period. No non-payment event of default that existed
or was continuing on the date of commencement of any other Guarantor Blockage Period with respect
to the Designated Guarantor Senior Indebtedness initiating such Guarantor Blockage Period may be,
or be made, the basis for the commencement of any other Guarantor Blockage Period by the
Representative of such Designated Guarantor Senior Indebtedness, whether or not within a period of
360 consecutive days, unless such event of default has been cured or waived for a period of not
less than 90 consecutive days. Any (i) subsequent action that causes a default pursuant to any
provision that was previously the subject of a Guarantor Payment Blockage Notice, or (ii) breach of
any financial covenant for a period ending after a period as to which a breach previously occurred
that was the subject of a Guarantor Payment Blockage Notice, will constitute a new default for this
purpose.

     (b) In the event that, notwithstanding the foregoing, any payment shall be received by the
Trustee or any Holder when such payment is prohibited by Section 12.02(a), such payment
shall be held in trust for the benefit of, and shall be paid over or delivered to, the holders of
such Guarantor Senior Indebtedness (pro rata to such holders on the basis of the respective amounts
of Senior Indebtedness held by such holders) or their respective representatives, or to the trustee
or trustees under any indenture pursuant to which any of such Guarantor Senior Indebtedness may
have been issued, as their respective interests may appear, but only to the extent that, upon
notice from the Trustee to the Representative of such Guarantor Senior Indebtedness that such
prohibited payment has been made, the holders of such Guarantor Senior Indebtedness notify the
Trustee in writing of the amounts then due and owing on such Guarantor Senior Indebtedness, if any,
and only the amounts specified in such notice to the Trustee shall be paid to the holders of such
Guarantor Senior Indebtedness.

     (c) The foregoing Section 12.02(a) and (b) shall not apply to (i) issuances of
Permitted Junior Securities or (ii) payments and distributions made from a trust established
pursuant to Article Eight hereof, so long as (x) the conditions specified in Article
Eight (without any waiver or modification of the requirement that the deposits pursuant thereto
do not conflict with the terms of any Senior Indebtedness or Guarantor Senior Indebtedness) are
satisfied on the date of any deposit pursuant to said trust and (y) such deposits did not violate
the provisions of Article Twelve when made.

Section 12.03. Payment Over of Proceeds upon Dissolution, etc.

     (a) Upon any payment or distribution of assets or securities of any Guarantor of any kind or
character, whether in cash, property or securities (excluding any payment or distribution of
Permitted Junior Securities), upon any dissolution or winding-up or liquidation or reorganization
of such Guarantor, whether voluntary or involuntary or in bankruptcy, insolvency, receivership or
other proceedings, all Guarantor Senior Indebtedness of such Guarantor will first be paid in full
before the Holders of the Securities or the Trustee on behalf of such Holders will be entitled to
receive any payment by such Guarantor of the principal of or interest on the Securities pursuant to
such Guarantor’s Guarantee, or any payment to acquire any of the Securities for cash, property or
securities, or any distribution with respect to the Securities of any cash, property or securities
(excluding any payment or distribution of Permitted Junior Securities). Before any payment may be
made by, or on behalf of, any Guarantor of the principal of or interest on the Securities upon any
such dissolution or winding-up or liquidation or reorganization, any payment or distribution of
assets or securities of such Guarantor of any kind or character, whether in cash, property or
securities (excluding any payment or distribution of Permitted Junior Securities), to which the
Holders of

 

- 40 -

the Securities or the Trustee on their behalf would be entitled, but for the subordination
provisions of this Indenture, will be made by such Guarantor or by any receiver, trustee in
bankruptcy, liquidating trustee, agent or other Person making such payment or distribution,
directly to the holders of the Guarantor Senior Indebtedness of such Guarantor (pro rata to such
holders on the basis of the respective amounts of such Guarantor Senior Indebtedness held by such
holders) or their respective Representatives on behalf such holders of Guarantor Senior
Indebtedness, as their respective interests may appear, to the extent necessary to pay all such
Guarantor Senior Indebtedness in full in cash after giving effect to any prior or concurrent
payment, distribution or provision therefor to or for the holders of such Guarantor Senior
Indebtedness.

     (b) To the extent any payment of Guarantor Senior Indebtedness (whether by or on behalf of the
relevant Guarantor, as proceeds of security or enforcement of any right of setoff or otherwise) is
declared to be fraudulent or preferential, set aside or required to be paid to any receiver,
trustee in bankruptcy, liquidating trustee, agent or other similar Person under any bankruptcy,
insolvency, receivership, fraudulent conveyance or similar law, then, if such payment is recovered
by, or paid over to, such receiver, trustee in bankruptcy, liquidating trustee, agent or other
similar Person, the Guarantor Senior Indebtedness or part thereof originally intended to be
satisfied shall be deemed to be reinstated and outstanding as if such payment had not occurred.

     (c) In the event that, notwithstanding the foregoing provision prohibiting such payment or
distribution, any payment or distribution of assets or securities of any Guarantor of any kind or
character, whether in cash, property or securities (excluding any payment or distribution of
Permitted Junior Securities), shall be received by the Trustee or any Holder of Securities at a
time when such payment or distribution is prohibited by Section 12.03(a) and before all
obligations in respect of the Guarantor Senior Indebtedness of such Guarantor are paid in full in
cash, or payment provided for, such payment or distribution shall be received and held in trust for
the benefit of, and shall be paid over or delivered to, the holders of such Guarantor Senior
Indebtedness (pro rata to such holders on the basis of the respective amounts of such Guarantor
Senior Indebtedness held by such holders) or their respective Representatives on behalf of such
holders of Guarantor Senior Indebtedness, as their respective interests may appear, for application
to the payment of such Guarantor Senior Indebtedness remaining unpaid until all such Guarantor
Senior Indebtedness has been paid in full in cash after giving effect to any prior or concurrent
payment, distribution or provision therefor to or for the holders of such Guarantor Senior
Indebtedness.

     The consolidation of any Guarantor with, or the merger of any Guarantor with or into, another
corporation or the liquidation or dissolution of any Guarantor following the conveyance or transfer
of its property as an entirety, or substantially as an entirety, to another corporation upon the
terms and conditions provided in Article Five (or any replacement provisions as
contemplated by Article Five) shall not be deemed a dissolution, winding-up, liquidation or
reorganization for the purposes of this Section 12.03 if such other corporation shall, as a
part of such consolidation, merger, conveyance or transfer, comply with the conditions stated in
Article Five (or any replacement provisions as contemplated by Article Five).

Section 12.04. Subrogation.

     Upon the payment in full of all Guarantor Senior Indebtedness of a Guarantor, or provision for
payment, the Holders of the Securities shall be subrogated to the rights of the holders of such
Guarantor Senior Indebtedness to receive payments or distributions of cash, property or securities
of such Guarantor made on such Guarantor Senior Indebtedness until the principal of and interest on
the Securities shall be paid in full in cash; and, for the purposes of such subrogation, no
payments or distributions to the holders of such Guarantor Senior Indebtedness of any cash,
property or securities to which the Holders of the Securities or the Trustee on their behalf would
be entitled except for the provisions of this Article Twelve, and no payment over pursuant
to the provisions of this Article Twelve to the holders of such Guarantor Senior
Indebtedness by Holders of the Securities or the Trustee on their behalf shall, as between such
Guarantor, its creditors other than holders of such Guarantor Senior Indebtedness, and the Holders
of the Securities, be deemed to be a payment by such Guarantor to or on account of such Guarantor
Senior Indebtedness. It is understood that the provisions of this Article Twelve are and
are intended solely for the purpose of defining the relative rights of the Holders of the
Securities, on the one hand, and the holders of Guarantor Senior Indebtedness of each Guarantor, on
the other hand.

     If any payment or distribution to which the Holders of the Securities would otherwise have
been entitled but for the provisions of this Article Twelve shall have been applied,
pursuant to the provisions of this Article 

 

- 41 -

Twelve, to the payment of all amounts payable under Guarantor Senior Indebtedness,
then and in such case, the Holders of the Securities shall be entitled to receive from the holders
of such Guarantor Senior Indebtedness any payments or distributions received by such holders of
Guarantor Senior Indebtedness in excess of the amount required to make payment in full, or
provision for payment, of such Guarantor Senior Indebtedness.

Section 12.05. Obligations of Guarantors Unconditional.

     Nothing contained in this Article Twelve or elsewhere in this Indenture or in the
Securities or the Guarantees is intended to or shall impair, as among the Guarantors and the
Holders of the Securities, the obligation of each Guarantor, which is absolute and unconditional,
to pay to the Holders of the Securities the principal of and interest on the Securities as and when
the same shall become due and payable in accordance with the terms of the Guarantee of such
Guarantor, or is intended to or shall affect the relative rights of the Holders of the Securities
and creditors of any Guarantor other than the holders of Guarantor Senior Indebtedness of such
Guarantor, nor shall anything herein or therein prevent the Holder of any Security or the Trustee
on its behalf from exercising all remedies otherwise permitted by applicable law upon default under
this Indenture, subject to the rights, if any, under this Article Twelve of the holders of
Guarantor Senior Indebtedness in respect of cash, property, assets or securities of any Guarantor
received upon the exercise of any such remedy.

     Without limiting the generality of the foregoing, nothing contained in this Article
Twelve shall restrict the right of the Trustee or the Holders of Securities to take any action
to declare the Securities to be due and payable prior to their stated maturity pursuant to
Section 6.02 or to pursue any rights or remedies hereunder; provided, however, that all
Guarantor Senior Indebtedness of any Guarantor then due and payable shall first be paid in full
before the Holders of the Securities or the Trustee is entitled to receive any direct or indirect
payment from such Guarantor of principal of or interest on the Securities pursuant to such
Guarantor’s Guarantee.

Section 12.06. Notice to Trustee.

     The Company and each Guarantor shall give prompt written notice to the Trustee of any fact
known to the Company or such Guarantor which would prohibit the making of any payment to or by the
Trustee in respect of the Securities pursuant to the provisions of this Article Twelve,
although any delay or failure to give any such notice shall have no effect on the subordination
provisions contained herein. Regardless of anything to the contrary contained in this Article
Twelve, the Trustee shall not be charged with knowledge of the existence of any event of
default with respect to any Guarantor Senior Indebtedness or of any other facts which would
prohibit the making of any payment to or by the Trustee unless and until the Trustee shall have
received notice in writing at its corporate trust office to that effect signed by an Officer of the
Company or such Guarantor, or by a holder of Guarantor Senior Indebtedness or a Representative
therefor; and prior to the receipt of any such written notice, the Trustee shall, subject to
Article Seven, be entitled to assume (in the absence of actual knowledge to the contrary)
that no such facts exist; provided that if the Trustee shall not have received the notice provided
for in this Section 12.06 at least two Business Days prior to the date upon which by the
terms of this Indenture any moneys shall become payable for any purpose (including, without
limitation, the payment of the principal of or interest on any Security), then, regardless of
anything herein to the contrary, the Trustee shall have full power and authority to receive any
moneys from any Guarantor and to apply the same to the purpose for which they were received, and
shall not be affected by any notice to the contrary which may be received by it on or after such
prior date. Nothing contained in this Section 12.06 shall limit the right of the holders
of Guarantor Senior Indebtedness to recover payments as contemplated by Section 12.03. The
Trustee shall be entitled to rely on the delivery to it of a written notice by a Person
representing himself or itself to be a holder of any Guarantor Senior Indebtedness (or a trustee on
behalf of, or other representative of, such holder) to establish that such notice has been given by
a holder of such Guarantor Senior Indebtedness or a trustee or representative on behalf of any such
holder.

     In the event that the Trustee determines in good faith that any evidence is required with
respect to the right of any Person as a holder of Guarantor Senior Indebtedness to participate in
any payment or distribution pursuant to this Article Twelve, the Trustee may request such
Person to furnish evidence to the reasonable satisfaction of the Trustee as to the amount of
Guarantor Senior Indebtedness held by such Person, the extent to which such Person is entitled to
participate in such payment or distribution and any other facts pertinent to the rights of such
Person under this Article Twelve, and if such evidence is not furnished, the Trustee may
defer any payment to such Person pending judicial determination as to the right of such Person to
receive such payment.

 

- 42 -

Section 12.07. Reliance on Judicial Order or Certificate of Liquidating Agent.

     Upon any payment or distribution of assets or securities of a Guarantor referred to in this
Article Twelve, the Trustee, subject to the provisions of Article Seven hereof, and
the Holders of the Securities shall be entitled to rely upon any order or decree made by any court
of competent jurisdiction in which any insolvency, bankruptcy, dissolution, winding-up, liquidation
or reorganization proceedings are pending, or upon a certificate of the receiver, trustee in
bankruptcy, liquidating trustee, agent or other person making such payment or distribution,
delivered to the Trustee or to the Holders of the Securities for the purpose of ascertaining the
persons entitled to participate in such distribution, the holders of Guarantor Senior Indebtedness
of such Guarantor and other indebtedness of such Guarantor, the amount thereof or payable thereon,
the amount or amounts paid or distributed thereon and all other facts pertinent thereto or to this
Article Twelve.

Section 12.08. Trustee’s Relation to Guarantor Senior Indebtedness.

     The Trustee and any Paying Agent shall be entitled to all the rights set forth in this
Article Twelve with respect to any Guarantor Senior Indebtedness which may at any time be
held by it in its individual or any other capacity to the same extent as any other holder of
Guarantor Senior Indebtedness, and nothing in this Indenture shall deprive the Trustee or any
Paying Agent of any of its rights as such holder.

     With respect to the holders of Guarantor Senior Indebtedness, the Trustee undertakes to
perform or to observe only such of its covenants and obligations as are specifically set forth in
this Article Twelve, and no implied covenants or obligations with respect to the holders of
Guarantor Senior Indebtedness shall be read into this Indenture against the Trustee. The Trustee
shall not be deemed to owe any fiduciary duty to the holders of Guarantor Senior Indebtedness
(except as provided in Section 12.03(b)). Whenever a distribution is to be made or a
notice given to holders or owners of Guarantor Senior Indebtedness, the distribution may be made
and the notice may be given to their Representative, if any. The Trustee shall not be liable to
any such holders if the Trustee shall in good faith mistakenly pay over or distribute to Holders of
Securities or to the Company or to any other person cash, property or securities to which any
holders of Guarantor Senior Indebtedness shall be entitled by virtue of this Article Twelve
or otherwise.

Section 12.09. Subordination Rights Not Impaired by Acts or Omissions of the Guarantors or
Holders of Guarantor Senior Indebtedness.

     No right of any present or future holders of any Guarantor Senior Indebtedness to enforce
subordination as provided herein shall at any time in any way be prejudiced or impaired by any act
or failure to act on the part of any Guarantor or by any act or failure to act, in good faith, by
any such holder, or by any noncompliance by any Guarantor with the terms of this Indenture,
regardless of any knowledge thereof which any such holder may have or otherwise be charged with.
The provisions of this Article Twelve are intended to be for the benefit of, and shall be
enforceable directly by, the holders of Guarantor Senior Indebtedness.

Section 12.10. Securityholders Authorize Trustee to Effectuate Subordination of Guarantee.

     Each Holder of Securities by his acceptance of such Securities authorizes and expressly
directs the Trustee on his behalf to take such action as may be necessary or appropriate to
effectuate the subordination provided in this Article Twelve, and appoints the Trustee his
attorney-in-fact for such purposes, including, in the event of any dissolution, winding-up,
liquidation or reorganization of any Guarantor (whether in bankruptcy, insolvency, receivership,
reorganization or similar proceedings or upon an assignment for the benefit of creditors or
otherwise) tending towards liquidation of the business and assets of such Guarantor, the filing of
a claim for the unpaid balance of its or his Securities in the form required in those proceedings.

     If the Trustee does not file a proper claim or proof of debt in the form required in such
proceeding prior to 30 days before the expiration of the time to file such claim or claims, then
the holders of the Guarantor Senior Indebtedness or their Representative are or is hereby
authorized to have the right to file and are or is hereby authorized to file an appropriate claim
for and on behalf of the Holders of said Securities. Nothing herein contained shall be deemed to
authorize the Trustee or the holders of Guarantor Senior Indebtedness or their Representative to
authorize or consent to or accept or adopt on behalf of any Holder of Securities any plan of
reorganization,

 

- 43 -

arrangement, adjustment or composition affecting the Securities or the rights of any Holder
thereof, or to authorize the Trustee or the holders of Guarantor Senior Indebtedness or their
Representative to vote in respect of the claim of any Holder in any such proceeding.

Section 12.11. This Article Not to Prevent Events of Default.

     The failure to make a payment on account of principal of or interest on the Securities by
reason of any provision of this Article Twelve shall not be construed as preventing the
occurrence of an Event of Default specified in clause (1) or (2) of Section
6.01.

Section 12.12. Trustee’s Compensation Not Prejudiced.

     Nothing in this Article Twelve shall apply to amounts due to the Trustee pursuant to
other Sections in this Indenture.

Section 12.13. No Waiver of Guarantee Subordination Provisions.

     Without in any way limiting the generality of Section 12.09, the holders of Guarantor
Senior Indebtedness may, at any time and from time to time, without the consent of or notice to the
Trustee or the Holders of the Securities, without incurring responsibility to the Holders of the
Securities and without impairing or releasing the subordination provided in this Article
Twelve or the obligations hereunder of the Holders of the Securities to the holders of
Guarantor Senior Indebtedness, do any one or more of the following: (a) change the manner, place or
terms of payment or extend the time of payment of, or renew or alter, Guarantor Senior Indebtedness
or any instrument evidencing the same or any agreement under which Guarantor Senior Indebtedness is
outstanding or secured; (b) sell, exchange, release or otherwise deal with any property pledged,
mortgaged or otherwise securing Guarantor Senior Indebtedness; (c) release any Person liable in any
manner for the collection of Guarantor Senior Indebtedness; and (d) exercise or refrain from
exercising any rights against any Guarantor and any other Person.

Section 12.14. Certain Payments May Be Paid Prior to Dissolution.

     Nothing contained in this Article Twelve or elsewhere in this Indenture shall prevent
(i) a Guarantor, except under the conditions described in Section 12.02, from making
payments of principal of and interest on the Securities, or from depositing with the Trustee any
moneys for such payments, or (ii) the application by the Trustee of any moneys deposited with it
for the purpose of making such payments of principal of and interest on the Securities, to the
holders entitled thereto unless at least two Business Days prior to the date upon which such
payment becomes due and payable, the Trustee shall have received the written notice provided for in
Section 12.02(b) or in Section 12.06. A Guarantor shall give prompt written notice
to the Trustee of any dissolution, winding up, liquidation or reorganization of such Guarantor.

ARTICLE
THIRTEEN MISCELLANEOUS

Section 13.01. Trust Indenture Act Controls.

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

Section 13.02. Notices.

     Any order, consent, notice or communication shall be sufficiently given if in writing and
delivered in person or mailed by first class mail, postage prepaid, addressed as follows:

 

- 44 -

     if to the Company or to any Guarantor:

D.R. Horton, Inc.

301 Commerce Street, Suite 500

Forth Worth, Texas 76102

Attention: Chief Financial Officer

     if to the Trustee:

American Stock Transfer & Trust Company, LLC

59 Maiden Lane

Plaza Level

New York, NY 10038

Attention: Corporate Trust Administration

     The Company or the Trustee by notice to the other may designate additional or different
addresses for subsequent notices or communications.

     Any notice or communication mailed to a Securityholder shall be mailed to him by first class
mail at his address as it appears on the registration books of the Registrar and shall be
sufficiently given to him if so mailed within the time prescribed.

     Failure to mail a notice or communication to a Securityholder or any defect in it shall not
affect its sufficiency with respect to other Securityholders. If a notice or communication is
mailed in the manner provided above, it is duly given, whether or not the addressee receives it
except that notice to the Trustee shall only be effective upon receipt thereof by the Trustee.

     If the Company mails notice or communications to the Securityholders, it shall mail a copy to
the Trustee at the same time.

Section 13.03. Communications by Holders with Other Holders.

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

Section 13.04. Certificate and Opinion as to Conditions Precedent.

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

	 	(1)	 	an Officers’ Certificate (which shall include the statements set forth in
Section 13.05) stating that, in the opinion of the signers, all conditions
precedent, if any, provided for in this Indenture relating to the proposed action have
been complied with; and
	 
	 	(2)	 	an Opinion of Counsel (which shall include the statements set forth in
Section 13.05) stating that, in the opinion of such counsel, all such
conditions precedent and covenants, compliance with which constitutes a condition
precedent, if any, provided for in this Indenture relating to the proposed action or
inaction, have been complied with and that any such section does not conflict with the
terms of this Indenture.

 

- 45 -

Section 13.05. Statements Required in Certificate or Opinion.

     Each certificate or opinion with respect to compliance with a condition or covenant provided
for in this Indenture shall include:

	 	(1)	 	a statement that the person making such certificate or opinion has read such
covenant or condition;
	 
	 	(2)	 	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;
	 
	 	(3)	 	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
	 
	 	(4)	 	a statement as to whether or not, in the opinion of such person, such condition
or covenant has been complied with.

Section 13.06. Rules by Trustee and Agents.

     The Trustee may make reasonable rules for action by or a meeting of Securityholders. The
Registrar or Paying Agent may make reasonable rules for its functions.

Section 13.07. Legal Holidays.

     A “Legal Holiday” is a Saturday, a Sunday, a legal holiday or a day on which banking
institutions in Fort Worth, Texas and New York, New York are not required to be open. If a payment
date is a Legal Holiday, payment may be made on the next succeeding day that is not a Legal
Holiday, and no interest shall accrue for the intervening period. If this Indenture provides for a
time period that ends or requires performance of any non-payment obligation by a day that is not a
Business Day, then such time period shall instead be deemed to end on, and such obligation shall
instead be performed by, the next succeeding Business Day. A “Business Day” is any day other than
a Legal Holiday.

Section 13.08. Governing Law.

     The laws of the State of New York shall govern this Indenture, the Securities of each Series
and the Guarantees.

Section 13.09. No Adverse Interpretation of Other Agreements.

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

Section 13.10. No Recourse Against Others.

     All liability (i) described in Paragraph 13 of the Securities of any director,
officer, employee or stockholder, as such, of the Company and (ii) described in the third paragraph
of the guarantees of each Guarantor of any stockholder, officer, director, employee, incorporator,
partner, member or manager, of any Guarantor, is waived and released.

Section 13.11. Successors and Assigns.

     All covenants and agreements of the Company and the Guarantors in this Indenture and the
Securities shall bind their respective successors and assigns. All agreements of the Trustee in
this Indenture shall bind its successors and assigns.

 

- 46 -

Section 13.12. Duplicate Originals.

     The parties may sign any number of copies of this Indenture. Each signed copy shall be an
original, but all of them together represent the same agreement.

Section 13.13. Severability.

     In case any one or more of the provisions contained in this Indenture or in the Securities of
a Series shall for any reason be held to be invalid, illegal or unenforceable in any respect, such
invalidity, illegality or unenforceability shall not affect any other provisions of this Indenture
or of such Securities.

 

 

SIGNATURES

     IN WITNESS WHEREOF, the parties have caused this Indenture to be duly executed, all as of the
date first above written.

	 	 	 	 	 
	 	D.R. HORTON, INC.

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 

 

 

	 	 	 	 	 

	 	 	 	 	 
	 	AMERICAN STOCK TRANSFER & TRUST

COMPANY, LLC, as Trustee

 	 
	 	By:  	
 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

 

 

EXHIBIT A

			
	 	 	 
	No.                     
	 	CUSIP/ISIN No.:                     

[Title of Security]

D.R. HORTON, INC.

a Delaware corporation

promises to pay to      
                  
                  
       
             or registered assigns
the principal sum of              
                  
          [Dollars]* on      
                  
                 

Interest Payment Dates:               
                 
          and        
                 
                

Record Dates:                 
                 
        and          
                 
              

	 	 	 	 	 
	Authenticated:

	Dated:	 	 	 
	 	 	 	 	 
	 	D.R. HORTON, INC.

 	 
	 	By:  	 	 
	 	 	Title: 	 
	 	 	 	 
	 

	 	 	 	 	 
	American Stock Transfer & Trust Company, LLC, as
Trustee, certifies that this is one of the
Securities referred to in the within mentioned
Indenture.	 	 
	 
	 	 	 	 
	By:
	 	 	 	 
	 

	 	 	 	 
	 

	 	Authorized Signatory	 	 

 

			
	*	 	Or other currency. Insert corresponding provisions on reverse side of Security in respect of
foreign currency denomination or interest payment requirement.

A-1

 

 

D.R. HORTON, INC.

[Title of Security]

     D.R. HORTON, INC., a Delaware corporation (together with its successors and assigns, the
“Company”), issued this Security under an Indenture dated as of                     , 2009 (as amended,
modified or supplemented from time to time in accordance therewith, the “Base Indenture”), as
supplemented by the Supplemental Indenture dated as of                      (the “Supplemental Indenture”
and together with the Base Indenture, the “Indenture”), by and among the Company, the Guarantors
party thereto and American Stock Transfer & Trust Company, LLC, as trustee (in such capacity, the
“Trustee”), to which reference is hereby made for a statement of the respective rights,
obligations, duties and immunities thereunder of the Company, the Trustee and the Holders and of
the terms upon which the Securities are, and are to be, authorized and delivered. All terms used
in this Security that are defined in the Indenture shall have the meanings assigned to them
therein.

1. Interest.

     The Company promises to pay interest on the principal amount of this Security at the rate per
annum shown above. The Company will pay interest semiannually on                      and
                     of each year, commencing                     , ___, until the principal is paid or made
available for payment. Interest on the Securities will accrue from the most recent date to which
interest has been paid or duly provided for or, if no interest has been paid, from                     ,
___, provided that, if there is no existing default in the payment of interest, and if this
Security is authenticated between a record date referred to on the face hereof and the next
succeeding interest payment date, interest shall accrue from such interest payment date. Interest
will be computed on the basis of a 360-day year of twelve 30-day months.

2. Method of Payment.

     The Company will pay interest on the Securities (except defaulted interest, if any, which will
be paid on such special payment date to Holders of record on such special record date as may be
fixed by the Company) to the persons who are registered Holders of Securities at the close of
business on the [Insert record dates] immediately preceding the interest payment date. Holders
must surrender Securities to a Paying Agent to collect principal payments. The Company will pay
principal and interest in money of the United States that at the time of payment is legal tender
for payment of public and private debts.

3. Paying Agent and Registrar.

     Initially, the Trustee will act as Paying Agent and Registrar. The Company may change or
appoint any Paying Agent, Registrar or co-Registrar without notice. The Company or any of its
Subsidiaries or any of their Affiliates may act as Paying Agent, Registrar or co-Registrar.

4.
Optional
Redemption.1

     The Company may redeem the Securities at any time on or after _______, in whole
or in part, at the following redemption prices (expressed as a percentage of their principal
amount) together with interest accrued and unpaid to the date fixed for redemption:

	 	 	 
	If redeemed during the twelve-month period commencing
on                        and ending on                        in each of the
following years

	 	Percentage

[Insert provisions relating to redemption at option of Holders, if any]

 

			
	1	 	If applicable.

 A-2

 

 

     Notice of redemption will be mailed at least 30 days but not more than 60 days before the
redemption date to each Holder of Securities to be redeemed at its registered address. Securities
in denominations larger than
$1,0002 may be redeemed in part. On and after the redemption date
interest ceases to accrue on Securities or portions of them called for redemption, provided that if
the Company shall default in the payment of such Securities at the redemption price together with
accrued interest, interest shall continue to accrue at the rate borne by the Securities.

5.
Mandatory
Redemption.3

     The Company shall redeem [   ]% of the aggregate principal amount of Securities originally
issued under the Indenture on each of [   ], which redemptions are calculated to
retire [   ]% of the Securities originally issued prior to maturity. Such redemptions shall be
made at a redemption price equal to 100% of the principal amount thereof, together with accrued
interest to the redemption date. The Company may reduce the principal amount of Securities to be
redeemed pursuant to this Paragraph 5 by the principal amount of any Securities previously
redeemed, retired or acquired, otherwise than pursuant to this Paragraph 5, that the
Company has delivered to the Trustee for cancellation and not previously credited to the Company’s
obligations under this Paragraph 5. Each such Security shall be received and credited for
such purpose by the Trustee at the redemption price and the amount of such mandatory redemption
payment shall be reduced accordingly.

6. Subordination.

     The Securities are subordinated to Senior Indebtedness of the Company, as defined in the
Indenture. To the extent provided in the Indenture, Senior Indebtedness of the Company must be
paid before the Securities may be paid. The Company agrees, and each Securityholder by accepting a
Security agrees, to the subordination provisions contained in the Indenture and authorizes the
Trustee to give it effect and appoints the Trustee as attorney-in-fact for such purpose.

7. Denominations, Transfer, Exchange.

     The
Securities are in registered form only without coupons in denominations of $2,0004 and
integral multiples of $1,000 in excess
thereof.5 A Holder may transfer or exchange Securities by
presentation of such Securities to the Registrar or a co-Registrar with a request to register the
transfer or to exchange them for an equal principal amount of Securities of other denominations.
The Registrar may require a Holder, among other things, to furnish appropriate endorsements and
transfer documents and to pay any taxes and fees required by law or permitted by the Indenture.
The Registrar need not transfer or exchange any Security selected for redemption or purchase,
except the unredeemed or unpurchased part thereof if the Security is redeemed or purchased in part,
or transfer or exchange any Securities for a period of 15 days before a selection of Securities to
be redeemed or purchased.

8. Persons Deemed Owners.

     The registered Holder of this Security shall be treated as the owner of it for all purposes.

 

			
	2	 	Insert different or additional denominations and multiples.
	 
	3	 	If applicable.
	 
	4	 	Insert different or additional denominations and multiples.
	 
	5	 	Insert different or additional denominations and multiples.

A-3

 

 

9. Unclaimed Money.

     Subject to any applicable abandoned property law, the Trustee and the Paying Agent shall pay
to the Company upon written request any money held by them for the payment of principal or interest
that remains unclaimed for two years, and thereafter, Holders entitled to the money must look to
the Company for payment as general creditors.

10. Amendment, Supplement, Waiver.

     Subject to certain exceptions, the Indenture or the Securities may be amended or supplemented
with the consent of the Holders of at least a majority in principal amount of the outstanding
Securities of each Series affected by the amendment and any past default or compliance with any
provision relating to any Series of the Securities may be waived in a particular instance with the
consent of the Holders of a majority in principal amount of the outstanding Securities of such
Series.6 Without the consent of any Securityholder, the Company and the Trustee may amend or
supplement the Indenture or the Securities in certain respects as specified in the Indenture.

11. Successor Corporation.

     When a successor corporation assumes all the obligations of its predecessor under the
Securities and the Indenture, the predecessor corporation will be released from those obligations.

12. Trustee Dealings With Company.

     Subject to certain limitations imposed by the TIA, the Trustee under the Indenture, in its
individual or any other capacity, may make loans to, accept deposits from, and perform services for
the Company or its affiliates, and may otherwise deal with the Company or its affiliates, as if it
were not Trustee, including owning or pledging the Securities.

13. No Recourse Against Others.

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

14. Discharge of Indenture.

     The Indenture contains certain provisions pertaining to defeasance and discharge, which
provisions shall for all purposes have the same effect as if set forth herein.

15. Authentication.

     This Security shall not be valid until an authorized signatory of the Trustee signs the
certificate of authentication on the other side of this Security.

16. Abbreviations.

     Customary abbreviations may be used in the name of a Holder or an assignee, such as: TEN COM
(= tenants in common), TEN ENT (= tenants by the entireties), JT TEN (= joint tenants with right of
survivorship and not as tenants in common), CUST (= custodian), and U/G/M/A (= Uniform Gift to
Minors Act).

 

			
	6	 	If different terms apply, insert a brief summary thereof.

A-4

 

 

17. GOVERNING LAW.

     THIS SECURITY SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF
NEW YORK.

18. CUSIP and ISIN Numbers.

     Pursuant to a recommendation promulgated by the Committee on Uniform Security Identification
Procedures, the Company has caused CUSIP and ISIN numbers to be printed on the Securities and has
directed the Trustee to use CUSIP and ISIN numbers in notices of repurchase as a convenience to
Holders. No representation is made as to the accuracy of such numbers either as printed on the
Securities or as contained in any notice of repurchase and reliance may be placed only on the other
identification numbers placed thereon.

19. Copies.

     The Company will furnish to any Holder upon written request and without charge a copy of the
Indenture and the applicable Authorizing Resolution or supplemental indenture. Requests may be
made to: D.R. Horton, Inc., 301 Commerce St., Suite 500, Fort Worth, Texas 76102, Attention:
Chief Financial Officer.

A-5

 

 

ASSIGNMENT FORM

     If you the Holder want to assign this Security, fill in the form below:

I or we assign and transfer this Security to

 

(Insert assignee’s social security or tax ID number)

 

 

 

 

(Print or type assignee’s name, address, and zip code)

and irrevocably appoint

 

agent to transfer this Security on the books of the Company. The agent may substitute another to
act for him.

Date:                     

	 	 	 
	Your signature:
	 	 
	 

	 	 
	 

	 	(Sign exactly as your name appears on the other side of this
Security)
	 
	 	 
	Signature Guarantee:
	 	 
	 

	 	 

A-6

 

[FORM OF NOTATION ON SECURITY OF GUARANTEE]

GUARANTEE

     The undersigned (the “Guarantors”) have unconditionally guaranteed, jointly and severally
(such guarantee by each Guarantor being referred to herein as the “Guarantee”) (i) the due and
punctual payment of the principal of and interest on this Security, whether at maturity, by
acceleration or otherwise, the due and punctual payment of interest on the overdue principal and
interest, if any, on this Security, to the extent lawful, and the due and punctual performance of
all other obligations of the Company to the Holders or the Trustee all in accordance with the terms
set forth in Article Nine of the Indenture and (ii) in case of any extension of time of
payment or renewal of this Security or any of such other obligations, that the same will be
promptly paid in full when due or performed in accordance with the terms of the extension or
renewal, whether at stated maturity, by acceleration or otherwise.

     The Guarantees are subordinated to Guarantor Senior Indebtedness of the Guarantors, as defined
in the Indenture. To the extent provided in the Indenture, Guarantor Senior Indebtedness of the
Guarantors must be paid before the Securities may be paid.

     No past, present or future stockholder, officer, director, employee, incorporator, partner,
member or manager, as such, of any of the Guarantors shall have any liability under the Guarantee
by reason of such person’s status as stockholder, officer, director, employee, incorporator,
partner, member or manager. Each Holder of a Security by accepting a Security waives and releases
all such liability. This waiver and release are part of the consideration for the issuance of the
Guarantees.

     Each Holder of this Security by accepting this Security agrees that any Guarantor named below
shall have no further liability with respect to its Guarantee if such Guarantor otherwise ceases to
be liable in respect of its Guarantee in accordance with the terms of the Indenture.

     THE GUARANTEE SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF
NEW YORK.

     The Guarantee shall not be valid or obligatory for any purpose until the certificate of
authentication on the Securities upon which the Guarantee is noted shall have been executed by the
Trustee under the Indenture by the manual signature of one of its authorized officers.

	 	 	 	 	 
	 	[List of Guarantors]

 	 
	 	By:  	 	 
	 	 	Title: 	 
	 	 	 	 

A-7EX-4.1

Exhibit 4.1

THIS NOTE IS A GLOBAL SECURITY WITHIN THE MEANING OF THE INDENTURE HEREINAFTER REFERRED TO AND IS
REGISTERED IN THE NAME OF A DEPOSITARY OR A NOMINEE THEREOF. UNLESS AND UNTIL IT IS EXCHANGED IN
WHOLE OR IN PART FOR NOTES IN CERTIFICATED FORM, THIS NOTE MAY NOT BE TRANSFERRED EXCEPT AS A WHOLE
BY THE DEPOSITARY TO A NOMINEE OF THE DEPOSITARY OR BY THE DEPOSITARY OR ANY SUCH NOMINEE TO A
SUCCESSOR DEPOSITARY OR A NOMINEE OF SUCH SUCCESSOR DEPOSITARY.

UNLESS THIS NOTE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY
(“DTC”) TO THE ISSUER OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY NOTE
ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR IN SUCH OTHER NAME AS 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
VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER HEREOF, CEDE &
CO., HAS AN INTEREST HEREIN.

BRANDYWINE OPERATING PARTNERSHIP, L.P.

7.50% Guaranteed Notes Due 2015

	 	 	 
	REGISTERED

	 	PRINCIPAL AMOUNT $250,000,000
	No. 1

	 	CUSIP No. 105340AK9

          BRANDYWINE OPERATING PARTNERSHIP, L.P., a Delaware limited partnership (the “Issuer”, which
term includes any successor entity under the Indenture hereinafter referred to), for value
received, hereby promises to pay to Cede & Co., as the nominee of DTC, or registered assigns, the
principal sum of TWO HUNDRED FIFTY MILLION DOLLARS ($250,000,000) on May 15, 2015, unless redeemed
on any Redemption Date (as defined on the reverse hereof), and to pay interest on the outstanding
principal amount of this Note from September 25, 2009 (or from the most recent Interest Payment
Date (as defined below) to which interest has been paid or duly provided for), semiannually in
arrears on May 15 and November 15 of each year, commencing on May 15, 2010 (the “Interest Payment
Dates”), at the rate of 7.50% per annum, until payment of said principal amount has been paid or
duly provided for. Interest on this Note will be computed on the basis of a 360-day year of twelve
30-day months.

          The interest so payable and punctually paid or duly provided for on any Interest Payment Date
will be paid, as provided in the Indenture, to the Person in whose name this Note (or one or more
Predecessor Securities) is registered at the close of business on the “Regular Record Date” for
such payment, which will be the May 1 and November 1 (regardless of whether such day is a Business
Day) immediately preceding such Interest Payment Date. Any

 

 

such interest not so punctually paid or duly provided for on an Interest Payment Date
(“Defaulted Interest”) will forthwith cease to be payable to the Holder on such Regular Record
Date, and may either be paid to the Person in whose name this Note (or one or more Predecessor
Securities) is registered at the close of business on a Special Record Date for the payment of such
Defaulted Interest to be fixed by the Trustee, with notice whereof given by mail by or on behalf of
the Issuer to the Holder of this Note not less than 10 days prior to such Special Record Date
(which will be not more than 15 days and not less than 10 days prior to the date of the proposed
payment of such Defaulted Interest), or may be paid at any time in any other lawful manner, all as
more fully provided for in the Indenture (as defined on the reverse hereof).

          Payment of the principal of and Make-Whole Amount (as defined on the reverse hereof), if any,
and interest on this Note will be made at the office or agency of the Issuer maintained by the
Issuer for such purpose in the Borough of Manhattan, The City of New York, which initially will be
the Corporate Trust Office of The Bank of New York Mellon, the Trustee for this Note under the
Indenture, located at 101 Barclay Street, Floor 8W, Attention: Corporate Trust Administration, New
York, New York 10286, in such coin or currency of the United States as at the time of payment is
legal tender for payment of public and private debts; provided, however, that at the option of the
Issuer payment of interest may be made by check mailed to the address of the Person entitled
thereto as such address will appear in the Security Register or by wire transfer of funds to the
Person entitled thereto at a bank account maintained in the United States.

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

          Unless the certificate of authentication hereon has been executed by or on behalf of The Bank
of New York Mellon, the Trustee for this Note under the Indenture, or its successor thereunder, by
the manual signature of one of its authorized officers, this Note will not be entitled to any
benefit under the Indenture or be valid or obligatory for any purpose.

 

 

          IN WITNESS WHEREOF, the Issuer has caused this instrument to be duly executed, manually or in
facsimile, and an imprint or facsimile of its seal to be imprinted hereon.

Dated: September 25, 2009

	 	 	 	 	 
	[SEAL] 	BRANDYWINE OPERATING PARTNERSHIP, L.P.

 	 
	 	By:  	Brandywine Realty Trust, 
as General Partner
 	 
	 
	 	By:  	 /s/ Gerard H. Sweeney
 	 
	 	 	Name:  	Gerard H. Sweeney 	 
	 	 	Title:  	President and Chief
Executive Officer 	 
	 

	 	 	 	 	 	 	 
	Attest:	 	 
	 
	 	 	 	 	 	 
	By:
	 	/s/ Brad A. Molotsky	 	 
	 	 	 	 	 
	 

	 	Name:
	 	Brad A. Molotsky	 	 
	 

	 	Title:
	 	General Counsel and Secretary	 	 

CERTIFICATE OF AUTHENTICATION

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

	 	 	 	 	 
	 	THE BANK OF NEW YORK MELLON,

as Trustee

 	 
	 	By:  	/s/ Mary K. Miselis
 	 
	 	 	Authorized Signatory 	 
	 	 	 	 

 

 

	 	 	 	 	 

[REVERSE OF NOTE]

BRANDYWINE OPERATING PARTNERSHIP, L.P.

7.50% Guaranteed Notes Due 2015

          This Note is one of a duly authorized issue of securities of the Issuer (the “Securities”),
issued or to be issued under and pursuant to an Indenture, dated as of October 22, 2004, as
supplemented (the “Indenture”), among the Issuer, Brandywine Realty Trust, a Maryland real estate
investment trust (the “Parent Guarantor”), and The Bank of New York Mellon, as Trustee (the
“Trustee,” which term includes any successor Trustee under the Indenture with respect to the series
of Securities of which this Note is a part), to which Indenture and all indentures supplemental
thereto reference is hereby made for a statement of the respective rights thereunder of the Issuer,
the Parent Guarantor, the Trustee and the Holders of the Securities and the terms upon which the
Securities are to be authenticated and delivered. The Securities may be issued in one or more
series, which different series may be issued in various aggregate principal amounts, may mature at
different times, may bear interest (if any) at different rates, may be subject to different
redemption provisions (if any), and may otherwise vary as provided in the Indenture. This Note is
one of a series of Securities designated as the “7.50% Guaranteed Notes due 2015” of the Issuer
(the “Notes”), initially limited in aggregate principal amount to $250,000,000. The Issuer may,
from time to time, without the consent of the Holders, issue and sell additional Securities ranking
equally with the Notes and otherwise identical in all respects (except for their date of issuance,
issue price and the date from which interest payments thereon will accrue) so that such additional
Securities will be consolidated and form a single series with the Notes.

          The Notes are fully and unconditionally guaranteed as to the due and punctual payment of
principal of and Make-Whole Amount, if any, and interest on the Notes by the Parent Guarantor.

          All terms used in this Note which are defined in the Indenture will have the meanings assigned
to them in the Indenture.

          The Issuer may redeem this Note, at any time, in whole or in part, at its option, at a
redemption price (the “Redemption Price”) equal to the greater of: (i) 100% of the principal amount
of the Notes then outstanding to be redeemed, and (ii) the sum of the present values of the
remaining scheduled payments of principal and interest on the Notes to be redeemed (not including
any portion of such payments of interest accrued to the date of redemption) discounted to the date
of redemption on a semiannual basis (assuming a 360-day year consisting of twelve 30-day months) at
the applicable Treasury Rate plus 75 basis points (“Make-Whole Amount”), plus, in the case of
either (i) or (ii) above, accrued and unpaid interest on the principal amount being redeemed to the
date fixed for redemption (the “Redemption Date”).

          The following terms have the meanings specified below:

          “Treasury Rate” means, with respect to any Redemption Date either (i) the yield, under the
heading which represents the average for the immediately preceding week, appearing in the most
recently published statistical release designated “H.15(519)” or any successor

 

 

publication which is published weekly by the Board of Governors of the Federal Reserve System
and which establishes yields on actively traded U.S. Treasury securities adjusted to constant
maturity under the caption “Treasury Constant Maturities,” for the maturity corresponding to the
Comparable Treasury Issue (if no maturity is within three months before or after the Remaining Life
(as defined below), yields for the two published maturities most closely corresponding to the
Comparable Treasury Issue will be determined and the Treasury Rate will be interpolated or
extrapolated from such yields on a straight line basis, rounding to the nearest month), or (ii) if
such release (or any successor release) is not published during the week preceding the Calculation
Date or does not contain such yields, the rate per annum equal to the semiannual equivalent yield
to maturity of the Comparable Treasury Issue, calculated using a price for the Comparable Treasury
Issue (expressed as a percentage of its principal amount) equal to the Comparable Treasury Price
for such Redemption Date. The Treasury Rate will be calculated on the third business day preceding
the Redemption Date (the “Calculation Date”).

          “Comparable Treasury Issue” means the U.S. Treasury security selected by an Independent
Investment Banker as having a maturity comparable to the remaining term (“Remaining Life”) of the
Notes to be redeemed that would be utilized, at the time of selection and in accordance with
customary financial practice, in pricing new issues of corporate debt securities of comparable
maturity to the remaining term of such Notes.

          “Comparable Treasury Price” means (1) the average of five Reference Treasury Dealer quotations
for such Redemption Date, after excluding the highest and lowest Reference Treasury Dealer
quotations, or (2) if the Independent Investment Banker obtains fewer than four such Reference
Treasury Dealer quotations, the average of all such quotations.

          “Independent Investment Banker” means any of Banc of America Securities LLC, J.P. Morgan
Securities Inc. or Wells Fargo Securities, LLC, as specified by us, or, if these firms are
unwilling or unable to select the Comparable Treasury Issue, an independent investment banking
institution of national standing appointed by us.

          “Reference Treasury Dealer” means (1) Banc of America Securities LLC, J.P. Morgan Securities
Inc. and a primary U.S. government securities dealer (a “Primary Treasury Dealer”) selected by
Wells Fargo Securities, LLC and their respective successors; provided, however, that, if any of the
foregoing ceases to be a Primary Treasury Dealer in New York City, the Issuer will substitute
therefor another Primary Treasury Dealer and (2) any three other Primary Treasury Dealers selected
by the Issuer after consultation with the Independent Investment Banker.

          “Reference Treasury Dealer quotations” means, with respect to each Reference Treasury Dealer
and any Redemption Date, the average, as determined by the Independent Investment Banker, of the
bid and asked prices for the Comparable Treasury Issue (expressed in each case as a percentage of
its principal amount) quoted in writing to the Independent Investment Banker at 5:00 p.m. (New York
City time) on the third business day preceding such Redemption Date.

          If notice has been given as provided in the Indenture and funds for the redemption of this
Note or any part thereof called for redemption will have been made available on the

 

 

Redemption Date, this Note or such part thereof will cease to accrue interest on the
Redemption Date referred to in such notice and the only right of the Holder will be to receive
payment of the Redemption Price. Notice of any optional redemption of any Notes will be given to
the Holder hereof (in accordance with the provisions of the Indenture), at least 30 and not more
than 60 days prior to the Redemption Date. The notice of redemption will specify, among other
things, the Redemption Price and the aggregate principal amount of Notes to be redeemed. In the
event of redemption of this Note in part only, a new Note of like tenor for the unredeemed portion
hereof and otherwise having the same terms and provisions as this Note will be issued by the Issuer
in the name of the Holder hereof upon the presentation and surrender hereof.

          This Note is not subject to repayment at the option of the Holder thereof. In addition, this
Note is not entitled to the benefit of, and is not subject to, any sinking fund.

          In case an Event of Default with respect to this Note shall have occurred and be continuing,
the principal of and Make-Whole Amount, if any, and interest on this Note may automatically become
or may be declared, and upon such declaration will become, due and payable, in the manner, with the
effect and subject to the conditions provided in the Indenture.

          The Indenture permits, with certain exceptions as therein provided, the Issuer, the Parent
Guarantor and the Trustee with the consent of the Holders of more than 50% in principal amount of
the Notes at the time Outstanding, to execute supplemental indentures for the purpose of adding any
provisions to or changing in any manner or eliminating any of the provisions of the Indenture or of
modifying in any manner the rights of the Holders of the Notes; provided, however, that, without
the consent of the Holder of each Security affected thereby, no such supplemental indenture will,
among other things: (i) change the Stated Maturity of the principal of, or any installment of
principal of or interest on, any Security, (ii) reduce the principal amount of or premium, if any,
or interest on any Security; (iii) change the Place of Payment on any Security or the currency or
currency unit in which any Security or the principal thereof or premium, if any, or interest
thereon is payable; (iv) impair the right to institute suit for the enforcement of any such payment
on or after the Stated Maturity thereof (or, in the case of redemption, on or after the Redemption
Date); (v) reduce or alter the method of computation of any amount payable upon redemption,
repayment or purchase of any Security by the Issuer or the Parent Guarantor (or the time when such
redemption, repayment or purchase may be made); (vi) modify or affect in any manner adverse to
Holders of any Securities the terms of the obligations of the Parent Guarantor in respect of the
due and punctual payment of principal of or premium, if any, or interests on any Security; or (vii)
reduce the percentage in principal amount of the Outstanding Securities of any particular series,
the consent of the Holders of which is required for any such supplemental indenture. The Indenture
also permits the Issuer, the Parent Guarantor and the Trustee to enter into one or more
supplemental indentures, without the consent of any Holders of the Notes, to, among other things:
(i) evidence the succession of another person as obligor or a guarantor under the Indenture; (ii)
add covenants of the Issuer or the Parent Guarantor for the benefit of Holders of Securities; (iii)
add events of default for the benefit of Holders of Securities; (iv) secure, or add additional
guarantees with respect to, the Securities; (v) provide for the acceptance of appointment by a
successor trustee; (vi) cure any ambiguity, defect or inconsistency in the Indenture, provided that
such action will not adversely affect the interests of Holders of Securities of any series in any
material respects; and (vii) supplement any provisions of the Indenture to permit or facilitate
defeasance or discharge of any series of

 

 

Securities provided that such action will not adversely affect the interests of Holders of
Securities of any series in any material respect.

          The Indenture also contains provisions permitting the Holders of more than 50% in principal
amount of the Outstanding Securities of a series, on behalf of the Holders of all of the Securities
of such series, to waive compliance by the Issuer and the Parent Guarantor with certain provisions
of the Indenture and certain past defaults under the Indenture and their consequences with respect
to a Security, except a default in the payment of principal of or interest, if any, on such
Security or a default with respect to a covenant or provision of the Indenture, which cannot be
amended without the consent of the Holder of such Security.

          This Note is issuable only in registered form, without coupons, in denominations of $2,000 and
integral multiples of $1,000 in excess thereof. As provided in the Indenture and subject to
certain limitations therein set forth, this Note is exchangeable for a like aggregate principal
amount of Notes as requested by the Holder surrendering the same. If (x) the Depositary is at any
time unwilling or unable to continue as depositary and a successor Depositary is not appointed by
the Issuer within 90 days after the Issuer receives such notice or becomes aware of such
ineligibility, (y) the Issuer delivers to the Trustee an Issuer Order to the effect that this Note
will be exchangeable or (z) an Event of Default has occurred and is continuing with respect to the
Notes, this Note will be exchangeable for Notes in definitive form and in an equal aggregate
principal amount. Such definitive Notes will be registered in such name or names as the Depositary
will instruct the Trustee.

          As provided in the Indenture and subject to certain limitations set forth therein and above,
the transfer of this Note may be registered on the Security Register of the Issuer, upon surrender
of this Note for registration of transfer at the office or agency of the Issuer in the Borough of
Manhattan, The City of New York, duly endorsed by, or accompanied by a written instrument of
transfer in form satisfactory to the Issuer duly executed by, the Holder hereof or by his attorney
duly authorized in writing, and thereupon one or more new Notes of authorized denominations and for
the same aggregate principal amount will be issued to the designated transferee or transferees.

          No reference herein to the Indenture and no provision of this Note or of the Indenture will
alter or impair the obligation of the Issuer, which is absolute and unconditional, to pay the
principal of and the Make-Whole Amount, if any, and interest on this Note at the time, place and
rate, and in the coin or currency, herein and in the Indenture prescribed, or impair the
obligations of the Parent Guarantor in respect of their unconditional guarantees of the
aforementioned payments.

          No service charge will be made for any such registration of transfer or exchange, but the
Issuer may require payment of a sum sufficient to cover any tax or other governmental charge
payable in connection therewith.

          Prior to due presentment of this Note for registration of transfer, the Issuer, the Parent
Guarantor, the Trustee and any agent of the Issuer, the Parent Guarantor or the Trustee may treat
the Person in whose name this Note is registered as the Holder of this Note for all

 

 

purposes, whether or not this Note be overdue, and none of the Issuer, the Parent Guarantor or
the Trustee nor any such agent will be affected by notice to the contrary.

          Certain of the Issuer’s and the Parent Guarantor’s obligations under the Indenture with
respect to any series of Securities may be terminated if the Issuer or the Parent Guarantor
irrevocably deposits with the Trustee money or Government Obligations sufficient to pay and
discharge the entire indebtedness on all such Securities, as provided in the Indenture.

          No recourse will be had for the payment of the principal of or Make-Whole Amount, if any, or
the interest, if any, on this Note, or for any claim based thereon, or upon any obligation,
covenant or agreement of the Issuer or the Parent Guarantor in the Indenture, against any
incorporator, limited partner, shareholder, trustee, director, officer or employee, as such, past,
present of future, of the Issuer, of the Parent Guarantor or of any successor entity to the Issuer
or the Parent Guarantor, whether by virtue of any constitution, statute or rule of law or by the
enforcement of any assessment of penalty or otherwise; and all such personal liability is expressly
released and waived as a condition of, and as part of the consideration for, the issuance of this
Note.

          The Indenture and the Notes will be governed by, and construed in accordance with, the laws of
the State of New York.

 

 

ASSIGNMENT/TRANSFER FORM

          FOR VALUE RECEIVED the undersigned registered Holder hereby sell(s), assign(s) and transfer(s)
unto (insert Taxpayer Identification No.)                                         

 

 

(Please print or typewrite name and address including postal zip code
of assignee)

 

the within Note and all rights thereunder, hereby
irrevocably constituting and appointing             
                           
                     
attorney to transfer said Note on the
books of the Issuer with full power of substitution in the premises.

Date:                                         

	 	 	 	 	 
	 	 	 
	 	
 	 
	 	 	 
	 	NOTICE: The signature of the registered Holder to this assignment must correspond with the name as
written upon the face of the within instrument in
every particular, without alteration or enlargement
or any change whatsoever.

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00163-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00163-of-00352.parquet"}]]