Document:

exv10w116

Exhibit 10.116

SEPARATION AGREEMENT

          This Separation Agreement (this “Agreement”) by and among Sunrise Senior Living, Inc.,
a Delaware corporation (the “Company”), and DANIEL J. SCHWARTZ (the “Executive”) is
dated as of the 15th day of February, 2010.

          WHEREAS, the Executive and the Company have agreed that the Executive’s employment with the
Company and its affiliates will terminate on May 31, 2010 (the “Date of Termination”);

          NOW, THEREFORE, it is hereby agreed as follows:

          1. Termination from Employment; Prior Agreement; Release.

          (a) The Executive and the Company hereby agree that the Executive’s employment with the
Company shall terminate effective as of the close of business on the Date of Termination, and the
Executive shall concurrently resign from all offices and directorships he holds with the Company or
any of its affiliates. In the event that the Executive’s employment is terminated prior to the
Date of Termination (i) by the Executive other than for Good Reason (as defined in the Employment
Agreement, dated as of January 16, 2009, by and between the Company and the Executive (the
“Prior Agreement”)) or (ii) by the Company for Cause (as defined in the Prior Agreement),
this Agreement shall be deemed null and void ab initio and of no force and effect.

          (b) Subject to the Executive’s compliance with the terms of this Agreement, the Company agrees
to provide the Executive with the payments and benefits pursuant to Section 4(a) of the Prior
Agreement (subject to the last sentence of this Section 1(b) and further subject to Section 1(d)
below) and such other benefits as are provided in this Agreement, provided, that, not
earlier than the Date of Termination and not later than 22 days after the Date of Termination, the
Executive executes and, prior to the Revocation Deadline does not revoke, a release substantially
in the form attached as Attachment A hereto (the “Release”). The “Revocation
Deadline” shall be the date that is eight (8) days after the date on which the Executive
executes the Release. Notwithstanding the foregoing and notwithstanding anything to the contrary
in the Prior Agreement, the parties agree that, the severance amount payable pursuant to Section
4(a)(i)(B) of the Prior Agreement (the “Cash Severance Amount”) shall instead be paid to
the Executive as follows: (i) an amount equal to one-twenty-fourth (1/24th) of the Cash
Severance Amount on the first day of each calendar month after the Date of Termination commencing
July 2010 and continuing until December 2010; and (ii) on December 31, 2010, a lump sum amount
equal to the excess, if any, of the Cash Severance Amount over the aggregate of all amounts
previously paid to the Executive pursuant to the foregoing clause (i).

          (c) Subject to the Executive’s compliance with the terms of this Agreement and subject to
Section 1(d) below, the Company shall, at its sole expense as incurred, provide the Executive with
outplacement services, the scope and provider of which shall be selected by the

 

 

Company in the Company’s sole discretion, provided that (i) the cost of such
outplacement services shall not exceed $9,000; (ii) such outplacement services shall commence
within one year after the Date of Termination and shall end not later than the last day of the
second calendar year that begins after the Date of Termination; (iii) the amount of outplacement
services that the Company is obligated to provide in any given calendar year shall not affect the
outplacement services that the Company is obligated to pay or provide in any other calendar year;
and (iv) the Executive’s right to the outplacement services may not be liquidated or exchanged for
any other benefit.

          (d) Notwithstanding anything in this Agreement to the contrary, the Executive acknowledges and
agrees that, unless and until the Executive executes and, prior to the Revocation Deadline does not
revoke, the Release, he shall have no right to any payments or benefits under the Prior Agreement
in respect of the termination of his employment or under this Agreement.

          2. Survival. Notwithstanding anything herein to the contrary, Section 8 (Restrictive
Covenants) and Section 12 (Recoupment) of the Prior Agreement shall remain in full force and effect
in accordance with the terms thereof, except that, notwithstanding anything to the contrary in the
Prior Agreement, the Covenant Period (as defined in the Prior Agreement) for purposes of Section
8(b) of the Prior Agreement (entitled “Non-competition”) shall end on the one-year anniversary of
the Date of Termination (it being understood that the Covenant Period for purposes of Section 8(c)
of the Prior Agreement (entitled “Non-solicitation of Employees”) shall end on the two-year
anniversary of the Date of Termination).

          3. Successors. This Agreement is personal to the Executive and without the prior
written consent of the Company shall not be assignable by the Executive otherwise than by will or
the laws of descent and distribution. The Company shall each require any successor (whether direct
or indirect, by purchase, merger, consolidation or otherwise) to all or substantially all of its
business and/or assets to assume expressly and agree to perform this Agreement in the same manner
and to the same extent that the Company would be required to perform it if no such succession had
taken place. As used in this Agreement, the “Company” shall mean the Company as hereinbefore
defined and any successor to its businesses and/or assets which assumes and agrees to perform this
Agreement by operation of law, or otherwise.

          4. Miscellaneous.

          (a) This Agreement shall be governed by and construed in accordance with the laws of the
Commonwealth of Virginia, without reference to principles of conflict of laws. The captions of
this Agreement are not part of the provisions hereof and shall have no force or effect. This
Agreement may not be amended or modified otherwise than by a written agreement executed by the
parties hereto or their respective successors and legal representatives.

          (b) All notices and other communications hereunder shall be in writing and shall be given by
hand delivery to the other party or by registered or certified mail, return receipt requested,
postage prepaid, addressed as follows:

-2-

 

          If to the Executive:

          To the most recent address on file with the Company

          If to the Company:

Sunrise Senior Living, Inc.

7900 Westpark Drive, Suite T-900

McLean, Virginia 22102

Attention: General Counsel

or to such other address as either party shall have furnished to the other in writing in accordance
herewith. Notice and communications shall be effective when actually received by the addressee.

          (c) The invalidity or unenforceability of any provision (or portion thereof) of this Agreement
shall not affect the validity or enforceability of any other provision (or portion thereof) of this
Agreement.

          (d) This Agreement may be executed in several counterparts, each of which shall be deemed an
original, and said counterparts shall constitute but one and the same instrument.

[SIGNATURE PAGE FOLLOWS]

-3-

 

          IN WITNESS WHEREOF, the Executive has hereunto set the Executive’s hand and, pursuant to the
authorization from its Board of Directors, the Company has caused these presents to be executed in
its name on its behalf, all as of the day and year first above written.

	 	 	 	 	 
	 	DANIEL J. SCHWARTZ

 	 
	 	/s/ Daniel J. Schwartz
 	 
	 	 	 
	 	 	 
	 	SUNRISE SENIOR LIVING, INC. 	 
	 	 	 
	 	By:  	                                              /s Michael J. Rodis
 	 
	 	 	Name:  	Michael J. Rodis 	 
	 	 	Title:  	SVP — Human Resources 	 

-4-

 

	 	 	 	 	 

ATTACHMENT A

GENERAL RELEASE

-5-

 

GENERAL RELEASE

          This General Release of all Claims (this “Agreement”) is entered into on the date set
forth below by Daniel J. Schwartz (the “Executive”) and Sunrise Senior Living, Inc., a
Delaware corporation (the “Company”) and the Releasees (as defined below).

          In consideration of the promises set forth in the Employment Agreement between the Executive
and the Company, effective January 16, 2009 (the “Employment Agreement”), and as a
condition to Executive’s right to receive benefits under the Separation Agreement between the
Executive and the Company dated as of February 15, 2010 (the “Separation Agreement”), the
Executive agrees as follows:

1. General Release and Waiver of Claims.

          (a) Release. In consideration of the payments and benefits provided to the
Executive under the Employment Agreement and after being advised to consult with counsel,
the Executive and each of the Executive’s respective heirs, executors, administrators,
representatives, agents, successors and assigns (collectively, the “Releasors”)
hereby irrevocably and unconditionally release and forever discharge the Company and its
subsidiaries and affiliates and each of their respective officers, employees, directors,
shareholders and agents (“Releasees”) from any and all claims, actions, causes of
action, rights, judgments, obligations, damages, demands, accountings or liabilities of
whatever kind or character (collectively, “Claims”), including, without limitation,
any Claims under any federal, state, local or foreign law, that the Releasors may have, or
in the future may possess, arising out (i) of the Executive’s employment relationship with
and service as an employee, officer or director of the Company, and the termination of such
relationship or service and (ii) any event, condition, circumstance or obligation that
occurred, existed or arose on or prior to the date hereof; provided,
however, that notwithstanding anything else herein to the contrary, this Agreement
shall not affect: the obligations of the Company or the Executive set forth in the
Employment Agreement and Separation Agreement or other obligations that, in each case, by
their terms, are to be performed after the date hereof by the Company or the Executive
(including, without limitation, obligations to the Executive under the Employment Agreement
and Separation Agreement for any severance or similar payments or benefits, under any stock
option, stock or equity-based award, plan or agreements, or payments or obligations under
any pension plan or other benefit or deferred compensation plan, all of which shall remain
in effect in accordance with their terms); any indemnification or similar rights the
Executive has as a current or former officer or director of the Company, including, without
limitation, any and all rights thereto referenced in the Employment Agreement, the Company’s
bylaws, other governance documents, or any rights with respect to directors’ and officers’
insurance policies; the Executive’s right to reimbursement of business expenses;
and any Claims the Releasors may have against the Releasees by virtue of any Claims against
the Executive or any member of the Releasors brought by any of the Releasees.

          (b) Specific Release of ADEA Claims. In further consideration of the payments
and benefits provided to the Executive under the Employment Agreement, the Releasors hereby
unconditionally release and forever discharge the Releasees from any

-6-

 

and all Claims that the Releasors may have as of the date the Executive signs this
Agreement arising under the Federal Age Discrimination in Employment Act of 1967, as
amended, and the applicable rules and regulations promulgated thereunder (“ADEA”).
By signing this Agreement, the Executive hereby acknowledges and confirms the following:
(i) the Executive was advised by the Company in connection with his termination to consult
with an attorney of his choice prior to signing this Agreement and to have such attorney
explain to the Executive the terms of this Agreement, including, without limitation, the
terms relating to the Executive’s release of claims arising under ADEA, and the Executive
has in fact consulted with an attorney; (ii) the Executive was given a period of not fewer
than 21 days to consider the terms of this Agreement and to consult with an attorney of his
choosing with respect thereto; and (iii) the Executive knowingly and voluntarily accepts the
terms of this Agreement. The Executive also understands that he has seven (7) days
following the date on which he signs this Agreement within which to revoke the release
contained in this paragraph, by providing the Company a written notice of his revocation of
the release and waiver contained in this paragraph.

          (c) No Assignment. The Executive represents and warrants that he has not
assigned any of the Claims being released under this Agreement.

2. Proceedings. The Executive has not filed, and agrees not to initiate or cause to be
initiated on his behalf, any complaint, charge, claim or proceeding against the Releasees before
any local, state or federal agency, court or other body, other than with respect to the obligations
of the Company to the Executive under the Employment Agreement and the Separation Agreement or in
respect of any other matter described in the proviso to Section 1(a) (each, individually, a
“Proceeding”), and agrees not to participate voluntarily in any Proceeding. The Executive
waives any right he may have to benefit in any manner from any relief (whether monetary or
otherwise) arising out of any Proceeding.

3. Remedies.

     (a) In the event the Executive initiates or voluntarily participates in any Proceeding
following his receipt of written notice from the Company and a failure to cease such
participation within 30 days following receipt of such notice, or if he revokes the ADEA
release contained in Paragraph 1(b) of this Agreement within the seven-day period provided
under Paragraph 1(b), the Company may, in addition to any other remedies it may have,
reclaim any amounts paid to him under the termination provisions of the Employment Agreement
(including for this purpose stock or proceeds from the sale of stock purchased upon the
exercise of stock options or delivered upon the vesting of another equity-based compensation
award, to the extent the vesting of such stock option or other award accelerated on account
of the Executive’s termination of employment) or terminate any benefits or payments that are
subsequently due under the Employment Agreement, without waiving the release granted herein.

     (b) The Executive understands that by entering into this Agreement he will be limiting the
availability of certain remedies that he may have against the Company and limiting also his ability
to pursue certain claims against the Company.

-7-

 

4. Severability Clause. In the event any provision or part of this Agreement is found to
be invalid or unenforceable, only that particular provision or part so found, and not the entire
Agreement, will be inoperative.

5. Nonadmission. Nothing contained in this Agreement will be deemed or construed as an
admission of wrongdoing or liability on the part of the Company.

6. Governing Law. All matters affecting this Agreement, including the validity thereof,
are to be governed by, and interpreted and construed in accordance with, the laws of the
Commonwealth of Virginia applicable to contracts executed in and to be performed in that State.

7. Notices. All notices or communications hereunder shall be in writing, addressed as
provided in Section 4(b) of the Separation Agreement.

8. Separation Agreement. The Executive acknowledges that the execution and non-revocation
of this Agreement is a condition to Executive’s right to receive benefits under the Separation
Agreement.

          THE EXECUTIVE ACKNOWLEDGES THAT HE HAS READ THIS AGREEMENT AND THAT HE FULLY KNOWS,
UNDERSTANDS AND APPRECIATES ITS CONTENTS, AND THAT HE HEREBY EXECUTES THE SAME AND MAKES THIS
AGREEMENT AND THE RELEASE AND AGREEMENTS PROVIDED FOR HEREIN VOLUNTARILY AND OF HIS OWN FREE WILL.

          IN WITNESS WHEREOF, the Executive has executed this Agreement on the date first set forth
below.

	 	 	 	 	 
	 	DANIEL J. SCHWARTZ

 	 
	 	
 	 
	 	 	 
	 	 	 
	 	
Date of Execution: __________________________

 	 
	 	 	 
	 	 	 
	 	 	 
	 

-8-Exhibit 4.2

Exhibit 4.2

(b)

CIGNA CORPORATION

TO

MARINE MIDLAND BANK, N.A.,

Trustee

Indenture

Dated as of January 1, 1994

 

 

 

CIGNA Corporation

Certain Sections of this Indenture relating to Sections 310 through 318,

inclusive, of the Trust Indenture Act of 1939:

	 	 	 
	Trust Indenture	 	 
	Act Section	 	Indenture Section
	§310(a)(1)
	 	609
	(a)(2
	 	609
	(a)(3)
	 	Not Applicable
	(a)(4)
	 	Not Applicable
	(b)
	 	608
	 
	 	610
	§311(a)
	 	613
	(b)
	 	613
	§312(a)
	 	701
	 
	 	702(a)
	(b)
	 	702(b)
	(c)
	 	702(c)
	§313(a)
	 	703(a)
	(b)
	 	703(b)
	(c)
	 	703(a)
	(d)
	 	703(b)
	§314(a)
	 	704
	(a)(4)
	 	101
	(b)
	 	Not Applicable
	(c)(1)
	 	102
	(c)(2)
	 	102
	(c)(3)
	 	Not Applicable
	(d)
	 	Not Applicable
	(e)
	 	102
	§315(a)
	 	601
	(b)
	 	602
	(c)
	 	601
	(d)
	 	601
	(e)
	 	514
	§316(a)
	 	101
	(a)(1)(A)
	 	502
	 
	 	512
	(a)(1)(B)
	 	513
	(a)(2)
	 	Not Applicable
	(b)
	 	508
	(c)
	 	104(c)
	§317(a)(1)
	 	503
	(a)(2)
	 	504
	(b)
	 	1003
	§318(a)
	 	107

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

 

 

TABLE OF CONTENTS

	 	 	 	 	 
	 	 	PAGE	 
	 
	 	 	 	 
	PARTIES
	 	 	1	 
	RECITALS OF THE COMPANY
	 	 	1	 
	 
	 	 	 	 
	ARTICLE ONE
	 	 	 	 
	DEFINITIONS AND OTHER PROVISIONS OF GENERAL APPLICATION
	 	 	 	 
	 
	 	 	 	 
	SECTION 101. Definitions:
	 	 	 	 
	Act
	 	 	2	 
	Affiliate; control
	 	 	2	 
	Authenticating Agent
	 	 	2	 
	Board of Directors
	 	 	2	 
	Board Resolution
	 	 	2	 
	Business Day
	 	 	2	 
	Commission
	 	 	3	 
	Company
	 	 	3	 
	Company Request; Company Order
	 	 	3	 
	Corporate Trust Office
	 	 	3	 
	corporation
	 	 	3	 
	Defaulted Interest
	 	 	3	 
	Depository
	 	 	3	 
	Designated Subsidiary
	 	 	3	 
	Event of Default
	 	 	3	 
	Global Security
	 	 	4	 
	Holder
	 	 	4	 
	Indenture
	 	 	4	 
	interest
	 	 	4	 
	Interest Payment Date
	 	 	4	 
	Maturity
	 	 	4	 
	Officers’ Certificate
	 	 	4	 
	Opinion of Counsel
	 	 	4	 
	Original Issue Discount Security
	 	 	5	 
	Outstanding
	 	 	5	 
	Paying Agent
	 	 	6	 
	Person
	 	 	6	 
	Place of Payment
	 	 	6	 
	Predecessor Security
	 	 	6	 
	Redemption Date
	 	 	6	 
	Redemption Price
	 	 	7	 
	Regular Record Date
	 	 	7	 

NOTE: This table of contents shall not, for any purpose, be deemed to be a part of the Indenture.

 

 

	 	 	 	 	 
	 	 	PAGE	 
	 
	 	 	 	 
	Responsible Officer
	 	 	7	 
	Securities
	 	 	7	 
	Security Register and Security Registrar
	 	 	7	 
	Special Record Date
	 	 	7	 
	Stated Maturity
	 	 	7	 
	Subsidiary; voting stock
	 	 	7	 
	Trustee
	 	 	7	 
	Trust Indenture Act
	 	 	8	 
	U.S. Government Obligations
	 	 	8	 
	Vice President
	 	 	8	 
	SECTION 102. Compliance Certificates and Opinions
	 	 	8	 
	SECTION 103. Form of Documents Delivered to Trustee
	 	 	9	 
	SECTION 104. Acts of Holders; Record Dates
	 	 	10	 
	SECTION 105. Notices, Etc., to Trustee and Company
	 	 	11	 
	SECTION 106. Notice to Holders; Waiver
	 	 	12	 
	SECTION 107. Conflict with Trust Indenture Act
	 	 	12	 
	SECTION 108. Effect of Headings and Table of Contents
	 	 	12	 
	SECTION 109. Successors and Assigns
	 	 	12	 
	SECTION 110. Separability Clause
	 	 	13	 
	SECTION 111. Benefits of Indenture
	 	 	13	 
	SECTION 112. Governing Law
	 	 	13	 
	SECTION 113. Legal Holidays
	 	 	13	 
	 
	 	 	 	 
	ARTICLE TWO
	 	 	 	 
	SECURITY FORMS
	 	 	 	 
	 
	 	 	 	 
	SECTION 201. Forms Generally
	 	 	13	 
	SECTION 202. Form of Face of Security
	 	 	14	 
	SECTION 203. Form of Reverse of Security
	 	 	17	 
	SECTION 204. Form of Trustee’s Certificate of Authentication
	 	 	21	 
	SECTION 205. Additional Provisions Required in Global Security
	 	 	21	 
	 
	 	 	 	 
	ARTICLE THREE
	 	 	 	 
	THE SECURITIES
	 	 	 	 
	 
	 	 	 	 
	SECTION 301. Amount Unlimited; Issuable in Series
	 	 	22	 
	SECTION 302. Denominations
	 	 	25	 
	SECTION 303. Execution, Authentication, Delivery and Dating
	 	 	25	 
	SECTION 304. Temporary Securities
	 	 	27	 
	SECTION 305. Registration, Registration of Transfer and Exchange
	 	 	28	 
	SECTION 306. Mutilated, Destroyed, Lost and Stolen Securities
	 	 	30	 
	SECTION 307. Payment of Interest; Interest Rights Preserved
	 	 	31	 
	SECTION 308. Persons Deemed Owners
	 	 	32	 
	SECTION 309. Cancellation
	 	 	33	 
	SECTION 310. Computation of Interest
	 	 	34	 

 

ii

 

	 	 	 	 	 
	 	 	PAGE	 
	 
	 	 	 	 
	ARTICLE FOUR
	 	 	 	 
	SATISFACTION AND DISCHARGE
	 	 	 	 
	 
	 	 	 	 
	SECTION 401. Satisfaction and Discharge of Indenture
	 	 	34	 
	SECTION 402. Application of Trust Money
	 	 	35	 
	SECTION 403. Defeasance and Discharge of Securities of any Series
	 	 	36	 
	 
	 	 	 	 
	ARTICLE FIVE
	 	 	 	 
	REMEDIES
	 	 	 	 
	 
	 	 	 	 
	SECTION 501. Events of Default
	 	 	39	 
	SECTION 502. Acceleration of Maturity; Rescission and Annulment
	 	 	41	 
	SECTION 503. Collection of Indebtedness and Suits for Enforcement by Trustee
	 	 	42	 
	SECTION 504. Trustee May File Proofs of Claim
	 	 	43	 
	SECTION 505. Trustee May Enforce Claims Without Possession of Securities
	 	 	43	 
	SECTION 506. Application of Money Collected
	 	 	44	 
	SECTION 507. Limitation on Suits
	 	 	44	 
	SECTION 508. Unconditional Right of Holders to Receive Principal, Premium and Interest
	 	 	45	 
	SECTION 509. Restoration of Rights and Remedies
	 	 	45	 
	SECTION 510. Rights and Remedies Cumulative
	 	 	46	 
	SECTION 511. Delay or Omission Not Waiver
	 	 	46	 
	SECTION 512. Control by Holders
	 	 	46	 
	SECTION 513. Waiver of Past Defaults
	 	 	47	 
	SECTION 514. Undertaking for Costs
	 	 	47	 
	SECTION 515. Waiver of Stay or Extension Laws
	 	 	48	 
	 
	 	 	 	 
	ARTICLE SIX
	 	 	 	 
	THE TRUSTEE
	 	 	 	 
	 
	 	 	 	 
	SECTION 601. Certain Duties and Responsibilities
	 	 	48	 
	SECTION 602. Notice of Defaults
	 	 	48	 
	SECTION 603. Certain Rights of Trustee
	 	 	49	 
	SECTION 604. Not Responsible for Recitals or Issuance of Securities
	 	 	50	 
	SECTION 605. May Hold Securities
	 	 	50	 
	SECTION 606. Money Held in Trust
	 	 	50	 
	SECTION 607. Compensation and Reimbursement
	 	 	50	 
	SECTION 608. Disqualification; Conflicting Interests
	 	 	51	 
	SECTION 609. Corporate Trustee Required; Eligibility
	 	 	51	 
	SECTION 610. Resignation and Removal; Appointment of Successor
	 	 	51	 
	SECTION 611. Acceptance of Appointment by Successor
	 	 	53	 

 

iii

 

	 	 	 	 	 
	 	 	PAGE	 
	 
	 	 	 	 
	SECTION 612. Merger, Conversion, Consolidation or Succession to Business
	 	 	55	 
	SECTION 613. Preferential Collection of Claims Against Company
	 	 	55	 
	SECTION 614. Appointment of Authenticating Agent
	 	 	55	 
	 
	 	 	 	 
	ARTICLE SEVEN
	 	 	 	 
	HOLDERS’ LISTS AND REPORTS BY TRUSTEE AND COMPANY
	 	 	 	 
	 
	 	 	 	 
	SECTION 701. Company to Furnish Trustee Names and Addresses of Holders
	 	 	57	 
	SECTION 702. Preservation of Information; Communications to Holders
	 	 	58	 
	SECTION 703. Reports by Trustee
	 	 	58	 
	SECTION 704. Reports by Company
	 	 	59	 
	 
	 	 	 	 
	ARTICLE EIGHT
	 	 	 	 
	CONSOLIDATION, MERGER, CONVEYANCE, TRANSFER OR LEASE
	 	 	 	 
	 
	 	 	 	 
	SECTION 801. Company May Consolidate, Etc., Only on Certain Terms
	 	 	59	 
	SECTION 802. Successor Corporation Substituted
	 	 	60	 
	 
	 	 	 	 
	ARTICLE NINE
	 	 	 	 
	SUPPLEMENTAL INDENTURES
	 	 	 	 
	 
	 	 	 	 
	SECTION 901. Supplemental Indentures Without Consent of Holders
	 	 	61	 
	SECTION 902. Supplemental Indentures With Consent of Holders
	 	 	62	 
	SECTION 903. Execution of Supplemental Indentures
	 	 	64	 
	SECTION 904. Effect of Supplemental Indentures
	 	 	64	 
	SECTION 905. Conformity with Trust Indenture Act
	 	 	64	 
	SECTION 906. Reference in Securities to Supplemental Indentures
	 	 	64	 
	 
	 	 	 	 
	ARTICLE TEN
	 	 	 	 
	COVENANTS
	 	 	 	 
	 
	 	 	 	 
	SECTION 1001. Payment of Principal, Premium and Interest
	 	 	65	 
	SECTION 1002. Maintenance of Office or Agency
	 	 	65	 
	SECTION 1003. Money for Securities Payments to Be Held in Trust
	 	 	65	 
	SECTION 1004. Corporate Existence
	 	 	67	 
	SECTION 1005. Maintenance of Properties
	 	 	67	 
	SECTION 1006. Limitation on Liens on Common Stock of Designated Subsidiaries
	 	 	68	 
	SECTION 1007. Defeasance of Certain Obligations and Certain Events of Default
	 	 	68	 
	SECTION 1008. Statement by Officers as to Default
	 	 	70	 
	SECTION 1009. Waiver of Certain Covenants
	 	 	70	 

 

iv

 

	 	 	 	 	 
	 	 	PAGE	 
	 
	 	 	 	 
	ARTICLE ELEVEN
	 	 	 	 
	REDEMPTION OF SECURITIES
	 	 	 	 
	 
	 	 	 	 
	SECTION 1101. Applicability of Article
	 	 	71	 
	SECTION 1102. Election to Redeem; Notice to Trustee
	 	 	71	 
	SECTION 1103. Selection by Trustee of Securities to Be Redeemed
	 	 	71	 
	SECTION 1104. Notice of Redemption
	 	 	72	 
	SECTION 1105. Deposit of Redemption Price
	 	 	73	 
	SECTION 1106. Securities Payable on Redemption Date
	 	 	73	 
	SECTION 1107. Securities Redeemed in Part
	 	 	73	 
	 
	 	 	 	 
	ARTICLE TWELVE
	 	 	 	 
	SINKING FuNDS
	 	 	 	 
	 
	 	 	 	 
	SECTION 1201. Applicability of Article
	 	 	74	 
	SECTION 1202. Satisfaction of Sinking Fund Payments with Securities
	 	 	74	 
	SECTION 1203. Redemption of Securities for Sinking Fund
	 	 	75	 
	TESTIMONIUM
	 	 	76	 
	SIGNATURES AND SEALS
	 	 	76	 
	ACKNOWLEDGMENTS
	 	 	77	 

INDENTURE, dated as of January 1, 1994, between CIGNA
Corporation, a corporation duly organized and existing under the laws
of the State of Delaware (herein called the “Company”), having its principal
office at One Liberty Place, 1650 Market Street, Philadelphia, Pennsylvania
19192, and Marine Midland Bank, N.A., a national banking association duly
organized and existing under the laws of the United States of America, as
Trustee (herein called the “Trustee”).

Recitals of the Company

The Company has duly authorized the execution and delivery of this
Indenture to provide for the issuance from time to time of its unsecured
debentures, notes or other evidences of indebtedness (herein called the
“Securities”), to be issued in one or more series as in this Indenture
provided.

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

Now, Therefore, This Indenture Witnesseth:

For and in consideration of the premises and the purchase of the
Securities by the Holders thereof, it is mutually agreed, for the equal and
proportionate benefit of all Holders of the Securities or of series thereof,
as follows:

ARTICLE ONE

Definitions and Other Provisions of General

Application

SECTION 101. Definitions

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

(1) the terms defined in this Article have the meanings assigned to them in

 

1

 

this Article and include the plural as well as the singular;

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

 

2

 

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

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

“Act”, when used with respect to any Holder, has the
meaning specified in Section 104.

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

“Authenticating Agent” means any Person authorized by the Trustee
pursuant to Section 614 to act on behalf of the Trustee to authenticate
Securities of one or more series.

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

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

“Business Day”, when used with respect to any Place of Payment, means
each Monday, Tuesday, Wednesday, Thursday and Friday which is not a day on
which banking institutions in that Place of Payment are authorized or
obligated by law or executive order to close.

 

3

 

“Commission” means the Securities and Exchange Commission, as from time
to time constituted, created under the Securities Exchange Act of 1934, or, if
at any time after the execution of this instrument such Commission is not
existing and performing the duties now assigned to it under the Trust
Indenture Act, then the body performing such duties at such time.

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

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

“Corporate Trust Office” means the office of the Trustee, at which at any
particular time its corporate trust business shall be principally
administered, which office at the date of this Indenture is located at 140
Broadway, New York, N.Y. 10015.

“corporation” means a corporation, association, company, jointstock
company or business trust.

“Defaulted Interest” has the meaning specified in Section 307.

“Depository” means, unless otherwise specified by the Company pursuant to
Section 301, with respect to Securities of any series issuable or issued (in
whole or in part) in the form of one or more Global Securities, The Depository
Trust Company, New York, New York, or any successor thereto registered as a
clearing agency under the Securities and Exchange Act of 1934, as amended.

“Designated Subsidiary” means each of CIGNA Property and Casualty
Insurance Company, Connecticut General Life Insurance Company and Insurance
Company of North America, so long as it remains a Subsidiary, or any
Subsidiary which is a successor of such Designated Subsidiary.

“Event of Default” has the meaning specified in Section 501.

 

4

 

“Global Security” means a Security in the form prescribed in Section 205
evidencing all or a part of any series of Securities which is executed by the
Company and authenticated and delivered by the Trustee to the Depository or
pursuant to the Depository’s instruction, all in accordance with this
Indenture and pursuant to a Company Order, which shall be registered in the
name of the Depository or its nominee.

“Holder” means a Person in whose name a Security is registered in the
Security Register.

“Indenture” means this instrument as originally executed or as it may
from time to time be supplemented or amended by one or more indentures
supplemental hereto entered into pursuant to the applicable provisions hereof,
including, for all purposes of this instrument, and any such supplemental
indenture, the provisions of the Trust Indenture Act that are deemed to be a
part of and govern this instrument and any such supplemental indenture,
respectively. The term “Indenture” shall also include the terms of particular
series of Securities established as contemplated by Section 30l.

“interest”, when used with respect to an Original Issue Discount Security
which by its terms bears interest only after Maturity, means interest payable
after Maturity.

“Interest Payment Date”, when used with respect to any Security, means
the Stated Maturity of an instalment of interest on such Security.

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

“Officers’ Certificate” means a certificate signed by the Chairman of the
Board, a Vice Chairman of the Board, the President or a Vice President, and by
the Treasurer, an Assistant Treasurer, the Corporate Secretary or an Assistant
Corporate Secretary, of the Company, and delivered to the Trustee. One of the
officers signing an Officers’ Certificate given pursuant to Section 1008 shall
be the principal executive, financial or accounting officer of the Company.

“Opinion of Counsel” means a written opinion of counsel, who may be
counsel for (including an employee of) the Company, and who shall be reasonably
acceptable to the Trustee.

 

5

 

“Original Issue Discount Security” means any Security which provides for
an amount less than the principal amount thereof to be due and payable upon a
declaration of acceleration of the Maturity thereof pursuant to Section 502.

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

(i) Securities theretofore cancelled by the Trustee or delivered to the
Trustee for cancellation;

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

(iii) Securities for whose payment or redemption money or U.S.

Government Obligations in the necessary amount has been theretofore
deposited with the Trustee (or another trustee satisfying the requirements of
Section 609) in trust for the Holders of such Securities in accordance with
Section 403; and

(iv) Securities which have been paid pursuant to Section 306 or in
exchange for or in lieu of which other Securities have been authenticated and
delivered pursuant to this Indenture other than any such Securities in respect
of which there shall have been presented to the Trustee proof satisfactory to
it that such Securities are held by a bona fide purchaser in whose hands such
Securities are valid obligations of the Company;

provided, however, that in determining whether the Holders of the
requisite principal amount of the Outstanding Securities have given any
request, demand, authorization, direction, notice, consent or waiver hereunder,
(i) the principal amount of an Original Issue Discount Security that shall be
deemed to be Outstanding shall be the amount of the principal thereof that
would be due and payable as of the date of such determination upon acceleration
of the Maturity thereof pursuant to Section 502, (ii) the principal amount of a
Security denominated in one or more foreign currencies or currency units shall
be the U.S. dollar equiv-

 

6

 

alent, determined in the manner provided as contemplated by Section 301
on the date of original issuance of such Security, of the principal amount
(or, in the case of an Original Issue Discount Security, the U.S. dollar
equivalent on the date of original issuance of such Security of the amount
determined as provided in (i) above) of such Security, and (iii) Securities
owned by the Company or any other obligor upon the Securities or any Affiliate
of the Company or of such other obligor shall be disregarded and deemed not to
be Outstanding, except that, in determining whether the Trustee shall be
protected in relying upon any such request, demand, authorization, direction,
notice, consent or waiver, only Securities which the Trustee knows to be so
owned shall be so disregarded. Securities so owned which have been pledged in
good faith may be regarded as Outstanding if the pledgee establishes to the
satisfaction of the Trustee the pledgee’s right so to act with respect to such
Securities and that the pledgee is not the Company or any other obligor upon
the Securities or any Affiliate of the Company or of such other obligor.

“Paying Agent” means any Person authorized by the Company to pay the
principal of (and premium, if any) or interest on any Securities on behalf of
the Company.

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

“Place of Payment”, when used with respect to the Securities of any
series, means the place or places where the principal of (and premium, if any)
and interest on the Securities of that series are payable as specified as
contemplated by Section 301.

“Predecessor Security” of any particular Security means every previous
Security evidencing all or a portion of the same debt as that evidenced by such
particular Security; and, for the purposes of this definition, any Security
authenticated and delivered under Section 306 in exchange for or in lieu of a
mutilated, destroyed, lost or stolen Security shall be deemed to evidence the
same debt as the mutilated, destroyed, lost or stolen Security.

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

 

7

 

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

“Regular Record Date” for the interest payable on any Interest Payment Date on
the Securities of any series means the date specifiedfor that purpose
as contemplated by Section 301.

“Responsible Officer”, when used with respect to the Trustee, shall mean
any officer within the Corporate Trust and Agency Group (or any successor
group of the Trustee), including any vice-president, assistant vice president,
assistant secretary, or any other officer or assistant officer of the Trustee
customarily performing functions similar to those performed by the persons who
at the time shall be such officers or to whom any corporate trust matter is
referred at the Corporate Trust Office because of his knowledge of and
familiarity with the particular subject.

“Securities” has the meaning stated in the first recital of this
Indenture and more particularly means any Securities authenticated and
delivered under this Indenture.

“Security Register” and “Security Registrar” have the respective meanings
specified in Section 305.

“Special Record Date” for the payment of any Defaulted Interest means a
date fixed by the Trustee pursuant to Section 307.

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

“Subsidiary” means a corporation more than 50% of the outstanding voting
stock of which is owned, directly or indirectly, by the Company or by one or
more other Subsidiaries, or by the Company and one or more other Subsidiaries.
For the purposes of this definition, “voting stock” means stock which
ordinarily has voting power for the election of directors, whether at all
times or only as long as no senior class of stock has such voting power by
reason of any contingency.

“Trustee” means the Person named as the “Trustee” in the first paragraph
of this instrument until a successor Trustee shall have become such pursuant
to the applicable provisions of this Indenture, and

 

8

 

thereafter “Trustee” shall mean or include each Person who is then a Trustee
hereunder, and if at any time there is more than one such Person, “Trustee” as
used with respect to the Securities of any series shall mean the Trustee with
respect to Securities of that series.

“Trust Indenture Act” means the Trust Indenture Act of 1939 as in force
at the date as of which this instrument was executed; provided however, that
in the event the Trust Indenture Act of 1939 is amended after such date,
“Trust Indenture Act” means, to the extent required by any such amendment, the
Trust Indenture Act of 1939 as so amended.

“U.S. Government Obligations” means securities which are (i) direct
obligations of the United States of America for the payment of which its full
faith and credit is pledged or (ii) obligations of a Person controlled or
supervised by and acting as an agency or instrumentality of the United States
of America the payment of which is unconditionally guaranteed as a full faith
and credit obligation by the United States of America, which, in either case,
are not callable or redeemable at the option of the issuer thereof, and shall
also include a depository receipt issued by a bank (as defined in Section
3(a)(2) of the Securities Act of 1933, as amended), which has a combined
capital and surplus of not less than $50,000,000, as custodian with respect to
any such U.S. Government Obligation or a specific payment of interest on or
principal of any such U.S. Government Obligation held by such custodian for
the account of the holder of a depository receipt; provided that (except as
required by law) such custodian is not authorized to make any deduction from
the amount payable to the holder of such depository receipt from any amount
received by the custodian in respect of the U.S. Government Obligation or the
specific payment of interest on or principal of the U.S. Government Obligation
evidenced by such depository receipt.

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

SECTION 102. Compliance Certificates and Opinions.

Upon any application or request by the Company to the Trustee to take any
action under any provision of this Indenture, the Company shall furnish to the
Trustee such certificates and opinions as may be required under the Trust
Indenture Act. Each such certificate or opinion shall be given in the form of
an Officers’ Certificate, if to be given by an officer of the Company, or an
Opinion of Counsel, if to be given by counsel, and

 

9

 

shall comply with the requirements of the Trust Indenture Act and any other
requirements set forth in this Indenture.

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

(1) a statement that each individual signing suc4 certificate or opinion
has read such covenant or condition and the definitions herein relating
thereto;

(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 each such individual, 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, in the opinion of each such individual,
such condition or covenant has been complied with.

SECTION 103. Form of Documents Delivered to Trustee.

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

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

 

10

 

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

SECTION 104. Acts of Holders; Record Dates.

(a) Any request, demand, authorization, direction, notice, consent,
waiver or other action provided by this Indenture to be given or taken by
Holders may be embodied in and evidenced by one or more instruments of
substantially similar tenor signed by such Holders in person or by an agent
duly appointed in writing, or by any Person duly authorized by means of any
written certification, proxy or other authorization furnished by a Depository;
and, except as herein otherwise expressly provided, such action shall become
effective when such instrument or instruments are delivered to the Trustee
and, where it is hereby expressly required, to the Company. Such instrument or
instruments (and the action embodied therein and evidenced thereby) are herein
sometimes referred to as the “Act” of the Holders signing such instrument or
instruments or, in the case of the Depository, furnishing the written
certification, proxy or other authorization pursuant to which such instrument
or instruments are signed. Proof of execution of any such instrument, any
writing appointing any such agent or authorizing any such Person or any such
written certification or proxy shall be sufficient for any purpose of this
Indenture and (subject to Section 601) conclusive in favor of the Trustee and
the Company, if made in the manner provided in this Section.

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

(c) The Company may, in the circumstances permitted by the Trust
Indenture Act, fix any date as the record date for the purpose of deter-

 

11

 

mining the Holders of Securities of any series entitled to give or take any
request, demand, authorization, direction, notice, consent, waiver or other
action, or to vote on any action, authorized or permitted to be given or taken
by Holders of Securities of such series. If not set by the Company prior to
the first solicitation of a Holder of Securities of such series made by any
Person in respect of any such action, or, in the case of any such vote, prior
to such vote, the record date for any such action or vote shall be the 30th
day (or, if later, the date of the most recent list of Holders required to be
provided pursuant to Section 701) prior to such first solicitation or vote, as
the case may be. With regard to any record date for action to be taken by the
Holders of one or more series of Securities, only the Holders of Securities of
such series on such date (or their duly designated proxies) shall be entitled
to give or take, or vote on, the relevant action.

(d) The ownership of Securities shall be proved by the Security Register.

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

SECTION 105. Notices, Etc., to Trustee and Company.

Any request, demand, authorization, direction, notice, consent, waiver or
Act of Holders or other document provided or permitted by this Indenture to be
made upon, given or furnished to, or filed with,

(1) the Trustee by any Holder or by the Company shall be sufficient for
every purpose hereunder if made, given, furnished or filed in writing to or
with the Trustee at its Corporate Trust Office, Attention: Corporate Trust
Services, or

(2) the Company by the Trustee or by any Holder shall be sufficient for
every purpose hereunder (unless otherwise herein expressly provided) if in
writing and mailed, first-class postage prepaid, to the Company, Attention:
Corporate Secretary, addressed to the Company at the address of its principal
office specified in the first paragraph of this instrument or at any other
address previously furnished in writing to the Trustee by the Company.

 

12

 

SECTION 106. Notice to Holders; Waiver.

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

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

SECTION 107. Conflict with Trust Indenture Act.

If any provision hereof limits, qualifies or conflicts with a provision
of the Trust Indenture Act that is required under such Act to be a part of and
govern this Indenture, the latter provision shall control. If any provision of
this Indenture modifies or excludes any provision of the Trust Indenture Act
that may be so modified or excluded, the latter provision shall be deemed to
apply to this Indenture as so modified or to be excluded, as the case may be.

SECTION 108. Effect of Headings and Table of Contents.

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

SECTION 109. Successors and Assigns.

All covenants and agreements in this Indenture by the Company shall bind
its successors and assigns, whether so expressed or not.

 

13

 

SECTION 110. Separability Clause.

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

SECTION 111. Benefits of Indenture.

Nothing in this Indenture or in the Securities, express or implied, shall
give to any Person, other than the parties hereto and their successors
hereunder and the Holders, any benefit or any legal or equitable right, remedy
or claim under this Indenture.

SECTION 112. Governing Law.

This Indenture and the Securities shall be governed by and construed in
accordance with the laws of the State of New York.

SECTION 113. Legal Holidays.

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

ARTICLE TWO

Security Forms

SECTION 201. Forms Generally.

The Securities of each series shall be in substantially the form set forth
in this Article, or in such other form as shall be established by or pursuant
to a Board Resolution, or an Officers’ Certificate executed by

 

14

 

officers of the Company authorized by Board Resolution, or in one or more
indentures supplemental hereto, in each case with such appropriate insertions,
omissions, substitutions and other variations as are required or permitted by
this Indenture, and may have such letters, numbers or other marks of
identification and such legends or endorsements placed thereon as may be
required to comply with the rules of any securities exchange or as may,
consistently herewith, be determined by the officers executing such
Securities, as evidenced by their execution of the Securities. If the form of
Securities of any series is established by action taken pursuant to a Board
Resolution, or an Officers’ Certificate executed by officers of the Company
authorized by Board Resolution, a copy of an appropriate record of such action
shall be certified by the Corporate Secretary or an Assistant Corporate
Secretary of the Company and delivered to the Trustee at or prior to the
delivery of the Company Order contemplated by Section 303 for the
authentication and delivery of such Securities.

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

SECTION 202. Form of Face of Security.

[If the Security is an Original Issue Discount Security, insert —

For Purposes of Sections 1273 and 1275 of the Internal Revenue Code, the
amount of original issue discount on this Security is ___% of its principal
amount, the issue date is , 19___ And the yield to maturity is ___% (, the
method used to determine the yield is ___ and the amount of the original issue
discount applicable to the short accrual period of ___, 19__ to ___, 19__ is

 _____ 
___% of the principal amount of this security. 

CIGNA Corporation

____________________________________

	 	 	 	 	 
	No.

	 		 	$______

CIGNA Corporation, a Delaware corporation (herein called the
“Company”), for value received, hereby promises to pay to _____________________________ , or registered
assigns, the principal sum of

 

15

 

               
Dollars [If applicable,
substitute other currency] on              
[If the Security is to bear interest prior to Maturity, insert—, and to pay
interest thereon from               or from the most recent Interest Payment Date to which
interest has been paid or duly provided for, semiannually on           and        in each
year, commencing         , at the rate of             % per annum, until the principal hereof
is paid or made available for payment. [If applicable insert—, and (to the
extent that the payment of such interest shall be legally enforceable) at the
rate of               % per annum on any overdue principal and premium and on any overdue
instalment of interest]. The interest so payable, and punctually paid or duly
provided for, on any Interest Payment Date will, as provided in such Indenture,
be paid to the Person in whose name this Security (or one or more Predecessor
Securities) is registered at the close of business on the Regular Record Date
for such interest, which shall be the               or              
(whether or not a Business
Day), as the case may be, next preceding such Interest Payment Date. Any such
interest not so punctually paid or duly provided for 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 Security (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, notice whereof shall be
given to Holders of Securities of this series not less than 10 days prior to
such Special Record Date, or be paid at any time in any other lawful manner not
inconsistent with the requirements of any securities exchange on which the
Securities of this series may be listed, and upon such notice as may be
required by such exchange, all as more fully provided in said Indenture].

[If the Security is not to bear interest prior to Maturity, insert—The
principal of this Security shall not bear interest except in the case of a
default in payment of principal upon acceleration, upon redemption or at Stated
Maturity and in such case the overdue principal of this Security shall bear
interest at the rate of               % per annum (to the extent that the payment of such
interest shall be legally enforceable), which shall accrue from the date of
such default in payment to the date payment of such principal has been made or
duly provided for. Interest on any overdue principal shall be payable on
demand. Any such interest on any overdue principal that is not so paid on
demand shall bear interest at the rate of               % per annum (to the extent that
the payment of such interest shall be legally enforceable), which shall accrue
from the date

 

16

 

of such demand for payment to the date payment of such interest has been made
or duly provided for, and such interest shall also be payable on demand.]

Payment of the principal of (and premium, if any) and [if applicable,
insert—any such] interest on this Security will be made at the office or
agency of the Company maintained for that purpose in        , in such coin or
currency of the United States of America [if applicable, substitute other
currency] as at the time of payment is legal tender for payment of public and
private debts [if applicable, insert-; provided, however, that at the option
of the Company payment of interest may be made by check mailed to the address
of the Person entitled thereto as such address shall appear in the Security
Register].

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

Unless the certificate of authentication hereon has been executed by the
Trustee referred to on the reverse hereof by manual signature, this Security
shall not be entitled to any benefit under the Indenture or be valid or
obligatory for any purpose.

IN WITNESS WHEREOF, the Company has caused this instrument to be duly
executed under its corporate seal.

Dated:

[Seal]

	 	 	 	 	 
	 	CIGNA Corporation

 	 
	 	By  	 	 
	 	 	 	 
	 

Attest:

 ___________________________ 

 

17

 

SECTION 203. Form of Reverse of Security.

This Security is one of a duly authorized issue of securities of the
Company (herein called the “Securities”), issued and to be issued in one or
more series under an Indenture, dated as of
 _____ 
,19
 _____ 
(herein called the
“Indenture”), between the Company and Marine Midland Bank, N.A. (herein called
the “Trustee”, which term includes any successor trustee under the Indenture),
to which Indenture and all indentures supplemental thereto reference is hereby
made for a statement of the respective rights, limitations of rights, duties
and immunities thereunder of the Company, the Trustee and the Holders of the
Securities and of the terms upon which the Securities are, and are to be,
authenticated and delivered. This Security is one of the series designated on
the face hereof[, limited in aggregate principal amount to $
 _____].

[If applicable, insert—The Securities of this series are subject to
redemption upon not less than 30 days’ notice by mail, [if applicable,
insert—(1) on               in any year commencing with the year              
and ending with the year              
through operation of the sinking fund for this series at a Redemption Price
equal to 100% of the principal amount, and (2)] at any time [on or after
 _____ 
,
19___], as a whole or in part, at the election of the Company, at the
following Redemption Prices (expressed as percentages of the principal
amount): If redeemed [on or before
 _____,
 _____%, and if redeemed] during the
12-month period beginning ..of the years indicated,

	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	Redemption	 	 	 	 	 	 	Redemption	 
	Year	 	Price	 	 	Year	 	 	Price	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 

and thereafter at a Redemption Price equal to
 _____ 
% of the principal amount,
together in the case of any such redemption [if applicable, insert—(whether
through operation of the sinking fund or otherwise)] with accrued interest to
the Redemption Date, but interest instalments

 

18

 

whose Stated Maturity is on or prior to such Redemption Date will be payable
to the Holders of such Securities, or one or more Predecessor Securities, of
record at the close of business on the relevant Record Dates referred to on
the face hereof, all as provided in the Indenture.]

[If applicable, insert—The Securities of this series are subject to
redemption upon not less than 30 days’ notice by mail, (1) on
 _____ 
in any year
commencing with the year and ending with the year
 _____ 
through operation of the
sinking fund for this series at the Redemption Prices for redemption through
operation of the sinking fund (expressed as percentages of the principal
amount) set forth in the table below, and

(2) at any time [on or after
 ___________________ 
], as a whole or in part, at the election of the
Company, at the Redemption Prices for redemption otherwise than through
operation of the sinking fund (expressed as percentages of the principal
amount) set forth in the table below: If redeemed during the 12-month period
beginning
 __________ 
of the years indicated,

	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	Redemption Price	 
	 	 	Redemption Price	 	 	For Redemption	 
	 	 	For Redemption	 	 	Otherwise	 
	 	 	Through Operation	 	 	Than Through	 
	 	 	of the	 	 	Operation of the	 
	Year	 	Sinking Fund	 	 	Sinking Fun	 
	 
	 	 	 	 	 	 	 	 

and thereafter at a Redemption Price equal to
 _____ 
, % of the principal amount,
together in the case of any such redemption (whether through operation of the
sinking fund or otherwise) with accrued interest to the Redemption Date, but
interest instalments whose Stated Maturity is on or prior to such Redemption
Date will be payable to the Holders of such Securities, or one or more
Predecessor Securities, of record at the close of business on the relevant
Record Dates referred to on the face hereof, all as provided in the
Indenture.]

 

19

 

[Notwithstanding the foregoing, the Company may not, prior to               , redeem
any Securities of this series as contemplated by [Clause (2) of] the preceding
paragraph as a part of, or in anticipation of, any refunding operation by the
application, directly or indirectly, of moneys borrowed having an interest
cost to the Company (calculated in accordance with generally accepted
financial practice) of less than               % per annum.]

[The sinking fund for this series provides for the redemption on        in
each year beginning with the year               to and including the               year               of
[not less than] $          [(“mandatory sinking fund”) and not more than $...]
aggregate principal amount of Securities of this series. [Securities of this
series acquired or redeemed by the Company otherwise than through [mandatory]
sinking fund payments may be credited against subsequent [mandatory] sinking
fund payments otherwise required to be made [if applicable—in the inverse
order in which they become due.]]

[If this Security is subject to redemption,—In the event of redemption of
this Security in part only, a new Security or Securities of this series for the
unredeemed portion hereof will be issued in the name of the Holder hereof upon
the cancellation hereof.]

[The Indenture contains provisions for defeasance at any time of (a) the
entire indebtedness on this Security and (b) certain restrictive covenants and
certain Events of Default upon compliance by the Company with certain
conditions set forth therein, which provisions apply to this Security.]

[If the Security is not an Original Issue Discount Security,—If an Event
of Default with respect to Securities of this series shall occur and be
continuing, the principal of the Securities of this series may be declared due
and payable in the manner and with the effect provided in the Indenture.]

[If the Security is an Original Issue Discount Security,—If an Event of
Default with respect to Securities of this series shall occur and be
continuing, an amount of principal of the Securities of this series may be
declared due and payable in the manner and with the effect provided in the
Indenture. Such amount shall be equal to—insert formula for determining the
amount. Upon payment (i) of the amount of principal so declared due and
payable and (ii) of interest on any overdue principal

 

20

 

and overdue interest (in each case to the extent that the payment of such
interest shall be legally enforceable), all of the Company’s obligations in
respect of the payment of the principal of and interest, if any, on the
Securities of this series shall terminate.]

The Indenture permits, with certain exceptions as therein provided, the
amendment thereof and the modification of the rights and obligations of the
Company and the rights of the Holders of the Securities of each series to be
affected under the Indenture at any time by the Company and the Trustee with
the consent of the Holders of not less than 66%% in aggregate principal amount
of the Securities at the time Outstanding of each series to be affected. The
Indenture also contains provisions permitting the Holders of specified
percentages in aggregate principal amount of the Securities of each series at
the time Outstanding, on behalf of th~ Holders of all Securities of such
series, to waive compliance by the Company with certain provisions of the
Indenture and certain past defaults under the Indenture and their
consequences. Any such consent or waiver by the Holder of this Security shall
be conclusive and binding upon such Holder and upon all future Holders of this
Security and of any Security issued upon the registration of transfer hereof
or in exchange herefor or in lieu hereof, whether or not notation of such
consent or waiver is made upon this Security.

No reference herein to the Indenture and no provision of this Security or
of the Indenture shall alter or impair the right of the Holder of this
Security, which is absolute and unconditional, to receive payment of the
principal of (and premium, if any) and interest on this Security at the times,
place and rate, and in the coin or currency, herein prescribed.

As provided in the Indenture and subject to certain limitations therein
set forth, the transfer of this Security is registrable in the Security
Register, upon surrender of this Security for registration of transfer at the
office or agency of the Company in any place where the principal of (and
premium, if any) and interest on this Security are payable, duly endorsed by,
or accompanied by a written instrument of transfer in form satisfactory to the
Company and the Security Registrar duly executed by, the Holder hereof or his
attorney duly authorized in writing, and thereupon one or more new Securities
of this series and of like tenor, of authorized denominations and for the same
aggregate principal amount, will be issued to the designated transferee or
transferees.

 

21

 

The Securities of this series are issuable only in registered form
without coupons in denominations of $              and any integral multiple
[thereof] [of $          in excess thereof]. As provided in the Indenture and subject
to certain limitations therein set forth, Securities of this series are
exchangeable for other Securities of this series, of a like tenor and
aggregate principal amount but of a different authorized denomination, as
requested by the Holder surrendering the same.

No service charge shall be made for any such registration of transfer or
exchange, but the Company 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 Security for registration of transfer,
the Company, the Trustee and any agent of the Company or the Trustee may treat
the Person in whose name this Security is registered as the owner hereof for
all purposes, whether or not this Security be overdue, and neither the
Company, the Trustee nor any such agent shall be affected by notice to the
contrary.

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

SECTION 204. Form of Trustee’s Certificate of Authentication.

The Trustee’s certificate of authentication shall be in substantially the
following form:

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

	 	 	 	 	 
	 	MARINE MIDLAND BANK, N .A.
as Trustee

 	 
	 	By:  	 	 
	 	 	Authorized Officer 	 
	 	 	 	 
	 

SECTION 205. Additional Provisions Required in Global Security.

Any Global Security issued hereunder shall, in addition to the provisions
contained in Sections 202 and 203, bear the following legend (and/or such
additional or alternate legend(s) relative to the terms of

 

22

 

Global Securities as the Depository may request or the Company authorize
in an Officers’ Certificate pursuant to Section 201):

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

In addition, any Global Security issued hereunder shall include a
provision containing the language set forth below, or language of similar
effect:

“This Security is a Global Security and shall be exchangeable for
Securities registered in the names of Persons other than the Depository with
respect to this Global Security or its nominee only if (x) such Depository
notifies the Company that it is unwilling or unable to continue as Depository
for this Global Security or at any time ceases to be a clearing agency
registered as such under the Securities Exchange Act of 1934, as amended, (y)
the Company executes and delivers to the Trustee a Company Order that this
Global Security shall be exchangeable or (z) there shall have occurred and be
continuing an Event of Default with respect to the Securities. If this Global
Security is exchangeable pursuant to the preceding sentence it shall be
exchangeable for Securities issuable in denominations of $1,000 and any
integral multiple thereof, registered in such names as such Depository shall
direct.”

ARTICLE THREE

The Securities

SECTION 301. Amount Unlimited; Issuable in Series.

The aggregate principal amount of Securities which may be authenticated
and delivered under this Indenture is unlimited.

The Securities may be issued in one or more series. Prior to the issuance
of Securities of any series, there shall be (i) established in or pursuant to
a Board Resolution and, subject to Section 303, set forth, or

 

23

 

determined in the manner provided, in an Officers’ Certificate, or (ii)
established in one or more indentures supplemental hereto:

(1) the title of the Securities of the series (which shall distinguish the
Securities of the series from Securities or any other series);

(2) any limit upon the aggregate principal amount of the Securities of the
series which may be authenticated and delivered under this Indenture (except
for Securities authenticated and delivered upon registration of transfer of, or
in exchange for, or in lieu of, other Securities of the series pursuant to
Sections 304, 305, 306, 906 or 1107 and except for any Securities which,
pursuant to Section 303, are deemed never to have been authenticated and
delivered hereunder);

(3) the Person to whom any interest on a Security of the series shall be
payable, if other than the Person in whose name that Security (or one or more
Predecessor Securities) is registered at the close of business on the Regular
Record Date of such interest;

(4) the date or dates (or manner of determining the same) on which the
principal of the Securities of the series is payable;

(5) the rate or rates (or manner of determining the same) at which the
Securities of the series shall bear interest, if any, the date or dates from
which such interest shall accrue, the Interest Payment Dates on which any such
interest shall be payable and the Regular Record Date for any interest payable
on any Interest Payment Date;

(6) if other than as set forth herein, the place or places where the
principal of (and premium, if any) and interest on Securities of the series
shall be payable;

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

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

 

24

 

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

(10) if other than the principal amount thereof, the portion of the
principal amount of Securities of the series which shall be payable upon
declaration of acceleration of the Maturity thereof pursuant to Section 502;

(11) the currency, currencies or currency units in which payment of the
principal of and any premium and interest on any Securities of the series
shall be payable if other than the currency of the United States of America
and the manner of determining the equivalent thereof in the currency of the
United States of America for purposes of the definition of “Outstanding” in
Section 101;

(12) if the amount of payments of principal of (and premium, if any) or
interest on the Securities of the series may be determined with reference to
an index, the manner in which such amounts shall be determined;

(13) the application, if any, of Section 403 to the Securities of the
series;

(14) the application, if any, of Section 1007 to the Securities of the
series;

(15) if any of the Securities of the series are to be issued in whole or
in part in the form of one or more Global Securities, a statement to that
effect and, in such case, the Depository for such Global Security or
Securities, which Depository shall be a clearing agency registered under the
Securities Exchange Act of 1934, as amended; and

(16) any other terms of the series (which terms shall not be inconsistent
with the provisions of this Indenture except as permitted by Section 901(5)).

All Securities of anyone series shall be substantially identical except
as to denomination and except as may otherwise be provided in or pursuant to
the Board Resolution referred to above and (subject to Section 303) set forth,
or determined in the manner provided, in the Officers’ Certificate referred to
above.

If any of the terms of the series are established by action taken
pursuant to a Board Resolution, a copy of an appropriate record of such

 

25

 

action shall be certified by the Corporate Secretary or an Assistant Corporate
Secretary of the Company and delivered to the Trustee at or prior to the
delivery of the Officers’ Certificate setting forth the terms of the series.

SECTION 302. Denominations.

The Securities of each series shall be issuable in registered form
without coupons in such denominations as shall be specified as contemplated by
Section 301. In the absence of any such provisions with respect to the
Securities of any series, the Securities of such series shall be issuable in
denominations of $1,000 and any integral multiple thereof.

SECTION 303. Execution, Authentication, Delivery and Dating.

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

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

At any time and from time to time after the execution and delivery of this
Indenture, the Company may deliver Securities of any series executed by the
Company to the Trustee for authentication, together with a Company Order for
the authentication and delivery of such Securities, and the Trustee in
accordance with the Company Order shall authenticate and deliver such
Securities. If the form or terms of the Securities of the series have been
established in or pursuant to one or more Board Resolutions as permitted by
Sections 201 and 301, in authenticating such Securities, and accepting the
additional responsibilities under this Indenture in relation to such
Securities, the Trustee shall be entitled to receive, and (subject to Section
601) shall be fully protected in relying upon, an Opinion of Counsel stating,

(a) if the form of such Securities has been established by or pursuant to
Board Resolution as permitted by Section 201, that such form has been established in conformity with the provisions of this Indenture;

(b) if the terms of such Securities have been established by or pursuant to Board
Resolution as permitted by Section 301, that such terms have been established in conformity
with the provisions of this Indenture; and

(c) that such Securities, when authenticated and delivered by the Trustee and issued by
the Company in the manner and subject to any conditions specified in such Opinion of Counsel,
will constitute valid and legally binding obligations of the Company, enforceable in
accordance with their terms, subject to bankruptcy, insolvency, fraudulent transfer,
reorganization and other similar laws of general applicability relating to or affecting the
enforcement of creditors’ rights and to general equity principles.

 

26

 

With respect to Securities of a series constituting a medium-term note program, the Trustee may
conclusively rely on the documents and opinion delivered pursuant to Sections 201 and 301 and
this Section 303, as applicable (unless revoked by superseding comparable documents or
opinions) as to the authorization of the Board of Directors of any Securities delivered
hereunder, the form thereof and the legality, validity, binding effect and enforceability
thereof. With respect to Securities of a series constituting a medium-term note program, if
the form and general terms of the Securities of such series have been established by or
pursuant to one or more Board Resolutions as permitted by Sections 201 and 301, in
authenticating such Securities, and accepting the additional responsibilities under this
Indenture in relation to such Securities, the Trustee shall be entitled to receive, and
(subject to Section 601) shall be fully protected in relying upon, an Opinion of Counsel
stating, that the Securities have been duly authorized by the Company and, when duly executed
by the Company and completed and authenticated by the Trustee in accordance with the Indenture
and issued, delivered and paid for in accordance with any applicable distribution agreement,
will have been duly issued under the Indenture and will constitute valid and binding
obligations of the Company entitled to the benefits provided by the Indenture, except that the
enforceability thereof may be limited by bankruptcy, insolvency, reorganization, moratorium or
other similar laws affecting creditors’ rights generally from time to time in force and
general principles of equity. If such form or terms have been so established, the Trustee
shall not be required to authenticate such Securities if the issue of such Securities pursuant
to this Indenture will affect the Trustee’s

 

27

 

own rights, duties or immunities under the Securities and this Indenture or otherwise in a manner
which is not reasonably acceptable to the Trustee.

Notwithstanding the provisions of Section 301 and of the preceding paragraph, if all
Securities of a series are not to be originally issued at one time, it shall not be necessary to
deliver the Officers’ Certificate otherwise required pursuant to Section 301 or the Company Order
and Opinion of Counsel otherwise required pursuant to such preceding paragraph at or prior to the
time of authentication of each Security of such series if such documents are delivered at or prior
to the time of authentication upon original issuance of the first Security of such series.

Each Security shall be dated the date of its authentication.

No Security shall be entitled to any benefit under this Indenture or be valid or obligatory
for any purpose unless there appears on such Security a certificate of authentication
substantially in the form provided for herein executed by the Trustee by manual signature, and
such certificate upon any Security shall be conclusive evidence, and the only evidence, that such
Security has been duly authenticated and delivered hereunder. Notwithstanding the foregoing, if
any Security shall have been authenticated and delivered hereunder but never issued and sold by
the Company, and the Company shall deliver such Security to the Trustee for cancellation as
provided in Section 309, for all purposes of this Indenture such Security shall be deemed never to
have been authenticated and delivered hereunder and shall never be entitled to the benefits of
this Indenture.

SECTION 304. Temporary Securities.

Pending the preparation of definitive Securities of any series, the Company may execute, and
upon Company Order the Trustee shall authenticate and deliver, temporary Securities which are
printed, lithographed, typewritten, mimeographed or otherwise produced, in any authorized
denomination, substantially of the tenor of the definitive Securities in lieu of which they are
issued and with such appropriate insertions, omissions, substitutions and other variations as the
officers executing such Securities may determine, as evidenced by their execution of such
Securities.

 

27

 

If temporary Securities of any series are issued, the Company will cause definitive
Securities of that series to be prepared without unreasonable delay. After the preparation of definitive Securities of such series, the temporary
Securities of such series shall be exchangeable for definitive Securities of such series upon
surrender of the temporary Securities of such series at the office or agency of the Company in a
Place of Payment for that series, without charge to the Holder. Upon surrender for cancellation of
anyone or more temporary Securities of any series the Company shall execute and (in accordance
with a Company Order delivered at or prior to the authentication of the first definitive Security
of such series) the Trustee shall authenticate and deliver in exchange therefor one or more
definitive Securities of the same series, of authorized denominations and of a like aggregate
principal amount and tenor. Until so exchanged the temporary Securities of any series shall in all
respects be entitled to the same benefits under this Indenture as definitive Securities of such
series and tenor.

SECTION 305. Registration, Registration of Transfer and Exchange.

The Company shall cause to be kept a security register (the register so maintained being
herein sometimes referred to as the “Security Register”) in which, subject to such reasonable
regulations as it may prescribe, the Company shall provide for the registration of Securities and
of transfers of Securities. The Trustee shall have the right to examine the Security Register at
all reasonable times. Unless otherwise designated by the Company by written notice to the Trustee,
Marine Midland Bank, N.A., Corporate Trust Services, 140 Broadway, New York, N.Y. 10015 shall be,
and is hereby appointed “Security Registrar” for the purpose of registering Securities and
transfers of Securities as herein provided.

Upon surrender for registration of transfer of any Security of any series at the office or
agency in a Place of Payment for that series, the Company shall execute, and the Trustee shall
authenticate and deliver, in the name of the designated transferee or transferees, one or more new
Securities of the same series, of any authorized denominations and of a like aggregate principal
amount and tenor.

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

 

28

 

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

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

No service charge shall be made for any registration of transfer or exchange of Securities,
but the Company may require payment of a sum sufficient to cover any tax or other governmental
charge that may be imposed in connection with any registration of transfer or exchange of
Securities, other than exchanges pursuant to Section 304, 906, or 1107 not involving any transfer.

The Company shall not be required (i) to issue, register the transfer of or exchange
Securities of any series during a period beginning at the opening of business 15 days before the
day of the mailing of a notice of redemption of Securities of that series selected for redemption
under Section 1103 and ending at the close of business on the day of such mailing, or (ii) to
register the transfer of or exchange any Security so selected for redemption in whole or in part,
except the unredeemed portion of any Security being redeemed in part.

Notwithstanding the foregoing, except as otherwise specified as contemplated by Section 301,
a Global Security of any series shall be exchangeable pursuant to this Section for Securities
registered in the names of Persons other than the Depository with respect to such series or its
nominee only as provided in this paragraph. A Global Security shall be exchangeable pursuant to
this Section if (x) such Depository notifies the Company that it is unwilling or unable to
continue as Depository for such series or at any time ceases to be a clearing agency registered as
such under the Securities Exchange Act of 1934, as amended, (y) the Company executes and delivers
to the Trustee a Company Order that such Global Security shall be so exchangeable or (z) there
shall have occurred and be continuing an Event of Default with respect to the Securities. Any
Global Security that is exchangeable pursuant to the
preceding sentence shall be exchangeable for Securities issuable in denominations of $1,000 and
any integral multiple thereof, registered in such names as the Depository for such Global Security
shall direct.

 

29

 

Notwithstanding any other provision of this Section, a Global Security may not be transferred
except as a whole by the Depository to a nominee of such Depository or by a nominee of such
Depository to such Depository or another nominee of such Depository.

SECTION 306. Mutilated, Destroyed, Lost and Stolen Securities.

If any mutilated Security is surrendered to the Trustee, and there is delivered to the
Company and the Trustee such security or indemnity as may be required by them to save each of them
and any agent of them harmless, the Company shall execute and the Trustee shall authenticate and
deliver in exchange therefore a new Security of the same series and of like tenor and principal
amount and bearing a number not contemporaneously outstanding.

If there shall be delivered to the Company and the Trustee (i) evidence to their satisfaction
of the destruction, loss or theft of any Security and (ii) such security or indemnity as may be
required by them to save each of them and any agent of either of them harmless, then, in the
absence of notice to the Company or the Trustee that such Security has been acquired by a bona
fide purchaser, the Company shall execute and the Trustee shall authenticate and deliver, in lieu
of any such destroyed, lost or stolen Security, a new Security of the same series and of like
tenor and principal amount and bearing a number not contemporaneously outstanding.

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

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

 

30

 

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

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

SECTION 307. Payment of Interest; Interest Rights Preserved.

Except as otherwise provided as contemplated by Section 301 with respect to any series of
Securities, interest on any Security which is payable, and is punctually paid or duly provided
for, on any Interest Payment Date shall be paid to the Person in whose name that Security (or one
or more Predecessor Securities) is registered at the close of business on the Regular Record Date
for such interest.

Unless otherwise provided with respect to the Securities of any series, at the option of the
Company payment of interest may be made (i) by check mailed to the address of the Person entitled
thereto as such address shall appear in the Security Register or (ii) by such method or methods as
any Holder shall specify in writing from time to time to the Company or its agent.

Any interest on any Security of any series which is payable, but is not punctually paid or
duly provided for, on any Interest Payment Date (herein called “Defaulted Interest”) shall
forthwith cease to be payable to the Holder on the relevant Regular Record Date by virtue of
having been such Holder, and such Defaulted Interest may be paid by the Company, at its election
in each case, as provided in Clause (1) or (2) below:

(1) The Company may elect to make payment of any Defaulted Interest to the Persons in
whose names the Securities of such series (or their respective Predecessor Securities) are
registered at the close of business on a Special Record Date for the payment of such
Defaulted Interest, which shall be fixed in the following manner. The Company shall notify
the Trustee in writing of the amount of Defaulted Interest proposed to be paid on each
Security of such series and the date of the proposed payment, and at the same time the
Company shall deposit with the Trustee an amount of money equal to the aggregate amount
proposed to be paid in respect of such Defaulted Interest or shall make arrangements
satisfactory to

 

31

 

the Trustee for such deposit prior to the date of the proposed payment, such money when
deposited to be held in trust for the benefit of the Persons entitled to such Defaulted
Interest as in this Clause provided. Thereupon the Trustee shall fix a Special Record Date
for the payment of such Defaulted Interest which shall be not more than 15 days and not less
than 10 days prior to the date of the proposed payment and not less than 10 days after the
receipt by the Trustee of the notice of the proposed payment. The Trustee shall promptly
notify the Company of such Special Record Date and, in the name and at the expense of the
Company, shall cause notice of the proposed payment of such Defaulted Interest and the
Special Record Date therefor to be mailed first-class postage prepaid to each Holder of
Securities of such series at his address as it appears in the Security Register, not less
than 10 days prior to such Special Record Date. Notice of the proposed payment of such
Defaulted Interest and the Special Record Date therefor having been so mailed, such
Defaulted Interest shall be paid to the Persons in whose names the Securities of such series
(or their respective Predecessor Securities) are registered at the close of business on such
Special Record Date and shall no longer be payable pursuant to the following Clause (2).

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

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 308. Persons Deemed Owners.

Prior to due presentment of a Security for registration of transfer, the Company, the
Trustee and any agent of the Company or the Trustee may treat the Person in whose name such
Security is registered as the owner of such Security for the purpose of receiving payment of
principal of (and premium, if any) and (subject to Section 307) any interest on such
Security and for all other purposes whatsoever, whether or not such Security be overdue, and
neither the Company, the Trustee nor any agent of the Company or the Trustee shall be affected by
notice to the contrary.

 

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No holder of any beneficial interest in any Global Security held on its behalf by a
Depository shall have any rights under this Indenture with respect to such Global Security, and
such Depository may be treated by the Company, the Trustee, and any agent of the Company or the
Trustee as the owner of such 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 a Depository, or impair, as between a Depository and such holders of beneficial
interests, the operation of customary practices governing the exercise of the rights of the
Depository as Holder of any Security.

SECTION 309. Cancellation.

All Securities surrendered for payment, redemption, registration of transfer or exchange or
for credit against any sinking fund payment shall, if surrendered to any Person other than the
Trustee, be delivered to the Trustee and shall be promptly cancelled by it; and any Security
surrendered to the Trustee for any such purpose shall be promptly cancelled by it. The Company may
at any time deliver to the Trustee for cancellation any Securities previously authenticated and
delivered hereunder which the Company may have acquired in any manner whatsoever, and may deliver
to the Trustee (or to any other Person for delivery to the Trustee) for cancellation any Securities
previously authenticated hereunder which the Company has not issued and sold, and all Securities so
delivered shall be promptly cancelled by the Trustee. Notwithstanding any other provision of this
Indenture to the contrary, in the case of a series all the Securities of which are not to be
originally issued at one time, a Security of such series shall not be deemed to have been
Outstanding at any time hereunder if and to the extent that, subsequent to the authentication and
delivery thereof, such Security is delivered to the Trustee for cancellation by the Company or any
agent thereof upon the failure of the original purchaser thereof to make payment therefor against
delivery thereof, and any Security so delivered to the Trustee shall be promptly cancelled by it.
No Securities shall be authenticated in lieu of or in exchange for any Securities cancelled as
provided in this
Section, except as expressly permitted by this Indenture. All cancelled Securities held by the
Trustee shall be disposed of as directed by a Company Order.

 

33

 

SECTION 310. Computation of Interest.

Except as otherwise specified as contemplated by Section 301 for Securities of any series,
interest on the Securities of each series shall be computed on the basis of a 360-day year of
twelve 30-day months.

ARTICLE FOUR

Satisfaction And Discharge

SECTION 401. Satisfaction and Discharge of Indenture.

This Indenture shall upon Company Request cease to be of further effect (except as to any
surviving rights of registration of transfer or exchange of Securities herein expressly provided
for), and the Trustee, at the expense of the Company, shall execute proper instruments
acknowledging satisfaction and discharge of this Indenture, when

(1) either

(A) all Securities theretofore authenticated and delivered (other than (i)
Securities which have been destroyed, lost or stolen and which have been replaced or
paid as provided in Section 306 and (ii) 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, as provided in Section
1003) have been delivered to the Trustee for cancellation; or

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

(i) have become due and payable, or

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

(iii) 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,

 

34

 

and the Company, in the case of (i), (ii) or (iii) above, has deposited or caused to be
deposited with the Trustee as trust funds in trust for the purpose an amount sufficient
to pay and discharge the entire indebtedness on such Securities not theretofore
delivered to the Trustee for cancellation, for principal (and premium, if any) and
interest to the date of such deposit (in the case of Securities which have become due
and payable) or to the Stated 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; and

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

Notwithstanding the satisfaction and discharge of this Indenture, the obligations of the
Company under Section 306, the obligations of the Company to the Trustee under Section 607, the
obligations of the Trustee to any Authenticating Agent under Section 614, if money or U.S.
Government Obligations shall have been deposited with the Trustee in accordance with Section 403
or 1007, the obligations of the Company to the Trustee under Section 402(b), and, if money shall
have been deposited with the Trustee pursuant to subclause (B) of Clause (1) of this Section, the
obligations of the Trustee under Section 402 and the last paragraph of Section 1003, shall
survive.

SECTION 402. Application of Trust Money.

(a) Subject to the provisions of the last paragraph of Section 1003, all money deposited with
the Trustee pursuant to Section 401, all money and U.S. Government Obligations deposited with the
Trustee (or other trustee satisfying the requirements of Section 609, collectively, for purposes of
this Section 402, the “Trustee”) pursuant to Section 403 or 1007 and all money received by the
Trustee in respect of U.S. Government Obligations deposited with the Trustee pursuant to Section
403, shall be held in trust and applied by the Trustee, in accordance with the provisions of the
Securities and this Indenture, to the payment, either directly or through any Paying Agent
(including the Company acting as its own Paying Agent) as the Trustee may determine, to the Persons
entitled thereto, of the principal (and premium, if any) and interest for whose payment such money
has been deposited with or received by the Trustee
or to make mandatory sinking fund payments or analogous payments as contemplated by Section 403
or 1007.

 

35

 

(b) The Company shall pay and shall indemnify the Trustee against any tax, fee or other
charge imposed on or assessed against U.S. Government Obligations deposited pursuant to Section
403 or 1007 or the interest and principal received in respect of such U.S. Government Obligations
other than any such tax, fee or other charge which by law is payable by or on behalf of Holders.

(c) Anything in this Article Four to the contrary notwithstanding, the Trustee shall deliver
or pay to the Company from time to time upon Company Request any money or U.S. Government
Obligations held by it as provided in Section 403 or 1007 which, in the opinion of a nationally
recognized firm of independent public accountants expressed in a written certification thereof
delivered to the Trustee, are in excess of the amount thereof which would then have been required
to be deposited for the purpose for which such money or U.S. Government Obligations were deposited
or received.

SECTION 403. Defeasance and Discharge of Securities of any Series.

If this Section 403 is specified, as contemplated by Section 301, to be applicable to
Securities of any series, then notwithstanding Section 401, the Company shall be deemed to have
paid and discharged the entire indebtedness on all the Outstanding Securities of any series, the
provisions of this Indenture as it relates to such Outstanding Securities (except as to (A) the
rights of Holders of such Outstanding Securities to receive, from the trust funds described in
subparagraph (1) below, payment of the principal of (and premium, if any) and any installment of
principal of (and premium, if any) or interest on such Securities on the Stated Maturity of such
principal or installment of principal or interest or any mandatory sinking fund payments or
analogous payments applicable to the Securities of that series on the day on which such payments
are due and payable in accordance with the terms of the Indenture and of such Securities, (B) the
Company’s obligations with respect to such Securities under Sections 304, 305, 306, 1002 and 1003,
(C) the rights, powers, trusts, duties and immunities of the Trustee hereunder and (D) this Article
Four, which in each case shall survive until otherwise terminated or discharged hereunder) shall no
longer be in effect, and the Trustee, at the expense of the Company, shall, upon Company Request,
execute proper instruments acknowledging the same, provided that the following conditions have been
satisfied:

 

36

 

(1) the Company has deposited or caused to be deposited with the Trustee (or another
corporate trustee appointed by the Company satisfying the requirements of Section 609 who shall
have agreed to comply with the provisions of this Article Four applicable to it), irrevocably
(irrespective of whether the conditions in subparagraphs (2), (3), (4), (5), (6) and (7) below
have been satisfied, but subject to the provisions of Section 402(c) and the last paragraph of
Section 1003), as trust funds in trust, specifically pledged as security for, and dedicated solely
to, the benefit of the Holders of the Securities of that series, with reference to this Section
403, (A) money in an amount, or (B) U.S. Government Obligations which through the scheduled
payment of interest and principal in respect thereof in accordance with their terms will provide
not later than one day before the due date of any payment referred to in clause (i) or (ii) of
this subparagraph (1) money in an amount, or (C) a combination thereof, sufficient, in the opinion
of a nationally recognized firm of independent public accountants expressed in a written
certification thereof delivered to the Trustee, to pay and discharge, and which shall be applied
by the Trustee (or such other corporate trustee, as the case may be) to pay and discharge, (i) the
principal of (and premium, if any) and each installment of principal (and premium, if any) and
interest on such Outstanding Securities on the Stated Maturity of such principal or installment of
principal or interest and (ii) any mandatory sinking fund payments or analogous payments
applicable to Securities of such series on the day on which such payments are due and payable in
accordance with the terms of this Indenture and of such Securities;

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

(3) no Event of Default under Sections 501(1), 501(2) or 501(3), or event which with the lapse
of time would become an Event of Default under Section 501(1), with respect to Securities of that
series shall have occurred and be continuing on the date of such deposit, and no Event of Default
under Section 501(6) or Section 501(7) or event which with the giving of notice or lapse of time,
or both, would become an Event of Default under Section 501(6) or Section 501(7) shall have
occurred and be continuing on the 91st day after such date of deposit;

 

37

 

(4) the Company has delivered to the Trustee an Opinion of Counsel to the effect that
since the date of this Indenture there has been a change in the applicable federal income tax
law (including a change in the official interpretation thereof), or the Company has received
from, or there has been published by, the Internal Revenue Service a ruling, in any case to
the effect that Holders of the Securities of that series will not recognize income, gain or
loss for federal income tax purposes as a result of such deposit, defeasance and discharge
and will be subject to federal income tax on the same amounts and in the same manner and at
the same times, as would have been the case if such deposit, defeasance and discharge had not
occurred;

(5) if the Securities of that series are then listed on the New York Stock Exchange,
Inc., the Company shall have delivered to the Trustee an Opinion of Counsel to the effect
that such deposit, defeasance and discharge will not cause such Securities to be delisted;

(6) the Company has delivered to the Trustee an Officers’ Certificate and an Opinion of
Counsel, each stating that all conditions precedent provided for relating to the defeasance
and discharge of the entire indebtedness on all Outstanding Securities of any such series as
contemplated by this Section have been complied with; and

(7) if such deposit is to be made with a trustee, other than the Trustee, pursuant to
subparagraph (1) above, such other trustee shall have delivered to the Trustee a certificate
satisfactory in form to the Trustee stating that such deposit has been made in accordance
with the provisions of this Article Four and that such other trustee agrees to comply with
the provisions of this Article Four applicable to it, and the Trustee shall be fully
protected in relying upon such certificate.

In the event that any other trustee is appointed by the Company pursuant to subparagraph (1)
above, the Trustee shall have no responsibility with respect to the performance by such other
trustee of its duties or with respect to any monies or U.S. Government Obligations deposited with
such other trustee.

 

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ARTICLE FIVE

Remedies

SECTION 501. Events of Default.

“Event of Default”, wherever used herein with respect to Securities of any series, means
anyone of the following events (whatever the reason for such Event of Default and whether it shall
be voluntary or involuntary or be effected by operation of law or pursuant to any judgment, decree
or order of any court or any order, rule or regulation of any administrative or governmental
body):

(1) default in the payment of any interest upon any Security of that series when it
becomes due and payable, and continuance of such default for a period of 30 days; or

(2) default in the payment of the principal of (or premium, if any, on) any Security of
that series at its Maturity; or

(3) default in the deposit of any sinking fund payment, when and as due by the terms of
a Security of that series; or

(4) default in the performance, or breach, of any covenant or warranty of the Company
in this Indenture (other than a covenant or warranty a default in the performance of which
or the breach of which is elsewhere in this Section specifically dealt with or which has
expressly been included in this Indenture solely for the benefit of series of Securities
other than that series), and continuance of such default or breach for a period of 90 days
after there has been given, by overnight mail or other same day or overnight delivery
service which can provide evidence of delivery, to the Company by the Trustee or to the
Company and the Trustee by the Holders of at least 25% in principal amount of the
Outstanding Securities of that series a written notice specifying such default or breach and
requiring it to be remedied and stating that such notice is a “Notice of Default” hereunder;
or

(5) a default under any bond, debenture, note or other evidence of indebtedness for
money borrowed by the Company (including a default with respect to Securities of any series
other than that series) or under any mortgage, indenture or instrument under which there may
be issued or by which there may be secured or evidenced any indebtedness for money borrowed
by the Company (including this Indenture), whether such indebtedness now exists or shall
hereafter be created, which default shall constitute a failure to pay such

 

39

 

indebtedness in a principal amount in excess of $20,000,000 when due and payable after the
expiration of any applicable grace period with respect thereto or shall have resulted in such
indebtedness in a principal amount in excess of $20,000,000 becoming or being declared due and
payable prior to the date on which it would otherwise have become due and payable, without such
indebtedness having been discharged, or such acceleration having been rescinded or annulled,
within a period of 15 days after there shall have been given, by overnight mail or other same day
or overnight delivery service which can provide evidence of delivery, to the Company by the
Trustee or to the Company and the Trustee by the Holders of at least 25% in principal amount of
the Outstanding Securities of that series a written notice specifying such default and requiring
the Company to cause such indebtedness to be discharged or cause such acceleration to be rescinded
or annulled and stating that such notice is a /IN otice of Default” hereunder; or

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

(7) the commencement by the Company of a voluntary case or proceeding under any applicable
Federal or State bankruptcy, insolvency, reorganization or other similar law or of any other case
or proceeding to be adjudicated a bankrupt or insolvent, or the consent by it to the entry of a
decree or order for relief in respect of the Company in an involuntary case or proceeding under
any applicable Federal or State bankruptcy, insolvency, reorganization or other similar law or to
the commencement of any bankruptcy or insolvency case or proceeding against it, or the filing by
it of a petition or answer or consent seeking reorganization or relief under any

 

40

 

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

(8) any other Event of Default provided with respect to Securities of that series.

SECTION 502. Acceleration of Maturity; Rescission and Annulment.

If an Event of Default with respect to Securities of any series at the time Outstanding
occurs and is continuing, then in every such case the Trustee or the Holders of not less than 25%
in principal amount of the Outstanding Securities of that series may declare the principal amount
(or, if any of the Securities of that series are Original Issue Discount Securities, such portion
of the principal amount of such Securities as may be specified in the terms thereof) of all of the
Securities of that series to be due and payable immediately, by a notice in writing to the Company
(and to the Trustee if given by Holders), and upon any such declaration such principal amount (or
specified amount) shall become immediately due and payable.

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

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

(A) all overdue interest on all Securities of that series,

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

 

41

 

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

(D) all sums paid or advanced by the Trustee hereunder and the reasonable
compensation, expenses, disbursements and advances of the Trustee, the Security
Registrar, any Paying Agent and their agents and counsel;

and

(2) all Events of Default with respect to Securities of that series, other than the
non-payment of the principal of Securities of that series which have become due solely by
such declaration of acceleration, have been cured or waived as provided in Section 513.

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

SECTION 503. Collection of Indebtedness and Suits for Enforcement by Trustee.

The Company covenants that if

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

(2) default is made in the payment of the principal of (or premi-um,
if any, on) any Security at the Maturity thereof,

the Company will, upon demand of the Trustee, pay to it, for the benefit of the Holders of such
Securities, the whole amount then due and payable on such Securities for principal (and premium, if
any) and interest and, to the extent that payment of such interest shall be legally enforceable,
interest on any overdue principal (and premium, if any) and on any overdue interest, at the rate or
rates prescribed therefor in such Securities, and, in addition thereto, such further amount as
shall be sufficient to cover the reasonable costs and expenses of collection, including the
compensation, expenses, disbursements and advances of the Trustee, its agents and counsel and other
amounts due the Trustee under Section 607.

 

42

 

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

SECTION 504. Trustee May File Proofs of Claim.

In case of any judicial proceeding relative to the Company (or any other obligor upon the
Securities), its property or its creditors, the Trustee shall be entitled and empowered, by
intervention in such proceeding or otherwise, to take any and all actions authorized under the
Trust Indenture Act in order to have claims of the Holders and the Trustee allowed in any such
proceeding. In particular, the Trustee shall be authorized to collect and receive any moneys or
other property payable or deliverable on any such claims and to distribute the same; and any
custodian, receiver, assignee, trustee, liquidator, sequestrator or other similar official in any
such judicial proceeding is hereby authorized by each Holder to make such payments to the Trustee
and, in the event that the Trustee shall consent to the making of such payments directly to the
Holders, to pay to the Trustee any amount due it for the reasonable compensation, expenses,
disbursements and advances of the Trustee, its agents and counsel, and any other amounts due the
Trustee under Section 607.

No provision of this Indenture shall be deemed to authorize the Trustee to authorize or
consent to or accept or adopt on behalf of any Holder any plan of reorganization, arrangement,
adjustment or composition affecting the Securities or the rights of any Holder thereof or to
authorize the Trustee to vote in respect of the claim of any Holder in any such proceeding.

SECTION 505. Trustee May Enforce Claims Without Possession of Securities.

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

 

43

 

SECTION 506. Application of Money Collected.

Any money collected by the Trustee pursuant to this Article shall
be applied in the following order, at the date or dates fixed by the
Trustee and, in case of the distribution of such money on account of
principal (or premium, if any) or interest, upon presentation of the
Securities and the notation thereon of the payment if only partially
paid and upon surrender thereof if fully paid:

FIRST: To the payment of all amounts due the Trustee under
Section 607; and

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

THIRD: The remainder, if any, to the Company, its successors
or assigns, or to whomsoever may be lawfully entitled to receive
such remainder or as a court of competent jurisdiction shall
direct.

SECTION 507. Limitation on Suits.

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

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

(2) the Holders of not less than 25% in principal amount of
the Outstanding Securities of that series shall have made written
request to the Trustee to institute proceedings in respect of such
Event of Default in its own name as Trustee hereunder;

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

 

44

 

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

(5) no direction inconsistent with such written request has been given to the Trustee
during such 60-day period by the Holders of a majority in principal amount of the
Outstanding Securities of that series;

it being understood and intended that no one or more of such Holders shall have any right in any
manner whatever by virtue of, or by availing of, any provision of this Indenture to affect,
disturb or prejudice the rights of any other of such Holders, or to obtain or to seek to obtain
priority or preference over any other of such Holders or to enforce any right under this
Indenture, except in the manner herein provided and for the equal and ratable benefit of all of
such Holders.

SECTION 508. Unconditional Right of Holders to Receive Principal, Premium and Interest.

Notwithstanding any other provision in this Indenture, the Holder of any Security shall have
the right, which is absolute and unconditional, to receive payment of the principal of (and
premium, if any) and (subject to Section 307) any interest on such Security on the Stated Maturity
or Maturities expressed in such Security (or, in the case of redemption, on the Redemption Date)
and to institute suit for the enforcement of any such payment, and such rights shall not be
impaired without the consent of such Holder.

SECTION 509. Restoration of Rights and Remedies.

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

 

45

 

SECTION 510. Rights and Remedies Cumulative.

Except as otherwise provided with respect to the replacement or
payment of mutilated, destroyed, lost or stolen Securities in the last
paragraph of Section 306, no right or remedy herein conferred upon or
reserved to the Trustee or to the Holders is intended to be exclusive of
any other right or remedy, and every right and remedy shall, to the
extent permitted by law, be cumulative and in addition to every other
right and remedy given hereunder or now or hereafter existing at law or
in equity or otherwise. The assertion or employment of any right or
remedy hereunder, or otherwise, shall not prevent the concurrent
assertion or employment of any other appropriate right or remedy.

SECTION 511. Delay or Omission Not Waiver.

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

SECTION 512. Control by Holders.

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

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

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

(3) the Trustee shall have the right to decline to follow such
direction if the Trustee in good faith shall, by a Responsible
Officer or Officers, determine that such direction would be
prejudicial to the Holders not joining in such direction or would
involve the Trustee in personal liability.

The Trustee may, but shall not be obligated to, fix a record date
for the purpose of determining the Persons entitled to so direct the
Trustee.

 

46

 

If a record date is fixed, the Holders on such record date, or their duly designated proxies, and
only such Persons, shall be entitled to so direct the Trustee, or to amend any such direction,
whether or not such Holders remain Holders after such record date; provided that no such direction
or amendment shall be valid or effective for more than 90 days after such record date.

SECTION 513. Waiver of Past Defaults.

The Holders of not less than a majority in principal amount of the Outstanding Securities of
any series may on behalf of the Holders of all the Securities of such series waive any past
default hereunder with respect to such series and its consequences, except a default

(1) in the payment of the principal of (or premium, if any) or interest on any Security
of such series, or

(2) in respect of a covenant or provision hereof which under Article Nine cannot be
modified or amended without the consent of the Holder of each Outstanding Security of such
series affected.

With respect to any series of Securities issued hereunder, the Com-
pany may, but shall not be obligated to, fix a record date for the purpose of determining the
Persons entitled to waive any past default hereunder. If a record date is fixed, the Holders on
such record date, or their duly designated proxies, and only such persons, shall be entitled to
waive any default hereunder, or to retract (prior to the delivery to the Trustee of waivers from
the Holders of a majority of such Securities) any such waiver previously given, whether or not
such Holders remain Holders after such record date; provided, that no such waiver shall be valid
or effective for more than 90 days after such record date.

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

SECTION 514. 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, suffered or omitted by it as Trustee, a court may
require any party litigant in such suit to file an undertaking to pay the costs of such suit, and
may assess costs against any such party litigant, in the manner and to the extent provided in the
Trust Indenture Act.

 

47

 

SECTION 515. Waiver of Stay or Extension Laws.

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

ARTICLE SIX

The Trustee

SECTION 601. Certain Duties and Responsibilities.

The duties and responsibilities of the Trustee shall be as
provided in the Trust Indenture Act. Notwithstanding the foregoing,
no provision of this Indenture shall require the Trustee to expend
or risk its own funds or otherwise incur any financial liability in
the performance of any of its duties hereunder, or in the exercise
of any of its rights or powers, if it shall have reasonable grounds
for believing that repayment of such funds or adequate indemnity
against such risk or liability is not reasonably assured to it.
Whether or not therein expressly so provided, every provision of
this Indenture relating to the conduct or affecting the liability
of or affording protection to the Trustee shall be subject to the
provisions of this Section.

SECTION 602. Notice of Defaults.

If a default occurs hereunder with respect to Securities of
any series, the Trustee shall give the Holders of Securities of
such series notice of such default as and to the extent provided by
the Trust Indenture Act; provided, however, that in the case of any
default of the character specified in Section 501(4) with respect
to Securities of such series, no such notice to Holders shall be
given until at least 30 days after the occurrence thereof. For the
purpose of this Section, the term “default” means any event which
is, or after notice or lapse of time or both would become, an Event
of Default with respect to Securities of such series.

 

48

 

SECTION 603. Certain Rights of Trustee.

Subject to the provisions of Section 601:

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

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

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

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

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

(f) the Trustee shall not be bound to make any investigation into the facts or matters
stated in any resolution, certificate, statement, instrument, opinion, report, notice,
request, direction, consent, order, bond, debenture, note, other evidence of indebtedness or
other paper or document, but the Trustee, in its discretion, may make such further inquiry
or investigation into such facts or matters as it may see fit; and

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

 

49

 

SECTION 604. Not Responsible for Recitals or Issuance of
Securities.

The recitals contained herein and in the Securities, except
the Trustee’s certificates of authentication, shall be taken as the
statements of the Company, and the Trustee or any Authenticating
Agent assumes no responsibility for their correctness. The Trustee
makes no representations as to the validity or sufficiency of this
Indenture or of the Securities. The Trustee or any Authenticating
Agent shall not be accountable for the use or application by the
Company of Securities or the proceeds thereof.

SECTION 605. May Hold Securities.

The Trustee, any Authenticating Agent, any Paying Agent, any
Security Registrar or any other agent of the Company, in its
individual or any other capacity, may become the owner or pledgee
of Securities and, subject to Sections 608 and 613, may otherwise
deal with the Company with the same rights it would have if it were
not Trustee, Authenticating Agent, Paying Agent, Security Registrar
or such other agent.

SECTION 606. Money Held in Trust.

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

SECTION 607. Compensation and Reimbursement.

The Company agrees

(1) to pay to the Trustee from time to time reasonable
compensation for all services rendered by it hereunder (which
compensation shall not be limited by any provision of law in
regard to the compensation of a trustee of an express trust),
provided that, unless there has been an Event of Default under
Section 501(6) or (7) hereof, such compensation shall be
limited to that which may be mutually agreed in writing between
the Company and the Trustee;

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

 

50

 

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

As security for the performance of the obligations of the Company under this Section the
Trustee shall have a lien prior to the Securities upon all property and funds held or collected by
the Trustee as such, except funds held in trust for the payment of principal of, premium, if any,
or interest on the Securities.

SECTION 608. Disqualification; Conflicting Interests.

If the Trustee has or shall acquire a conflicting interest within the meaning of the Trust
Indenture Act, the Trustee shall either eliminate such interest or resign, to the extent and in
the manner provided by, and subject to the provisions of, the Trust Indenture Act and this
Indenture.

SECTION 609. Corporate Trustee Required; Eligibility.

There shall at all times be a Trustee hereunder which shall be a Person that is eligible
pursuant to the Trust Indenture Act to act as such and has a combined capital and surplus of at
least $50,000,000. If such Person publishes reports of condition at least annually, pursuant to
law or to the requirements of said supervising or examining authority, then for the purposes of
this Section, the combined capital and surplus of such corporation shall be deemed to be its
combined capital and surplus as set forth in its most recent report of condition so published. If
at any time the Trustee shall cease to be eligible in accordance with the provisions of this
Section, it shall resign immediately in the manner and with the effect hereinafter specified in
this Article.

SECTION 610. Resignation and Removal; Appointment of Successor.

(a) No resignation or removal of the Trustee and no appointment of a successor Trustee
pursuant to this Article shall become effective until the acceptance of appointment by the
successor Trustee in accordance with the applicable requirements of Section 611.

 

51

 

(b) The Trustee may resign at any time with respect to the
Securities of one or more series by giving written notice thereof
to the Company. If the instrument of acceptance by a successor
Trustee required by Section 611 shall not have been delivered to
the Trustee within 30 days after the giving of such notice of
resignation, the resigning Trustee may petition any court of
competent jurisdiction for the appointment of a successor Trustee
with respect to the Securities of such series.

(c) The Trustee may be removed at any time with respect to
the Securities of any series by Act of the Holders of a majority
in principal amount of the Outstanding Securities of such series
delivered to the Trustee and to the Company.

(d) If at any time:

(1) the Trustee shall fail to comply with Section 608
after written request therefor by the Company or by any Holder
who has been a bona fide Holder of a Security for at least six
months, or

(2) the Trustee shall cease to be eligible under Section
609 and shall fail to resign after written request therefor by
the Company or by any such Holder, or

(3) the Trustee shall become incapable of acting or shall
be adjudged a bankrupt or insolvent or a receiver of the
Trustee or of its property shall be appointed or any public
officer shall take charge or control of the Trustee or of its
property or affairs for the purpose of rehabilitation,
conservation or liquidation.

then, in any such case, (i) the Company pursuant to a Board
Resolution may remove the Trustee with respect to all Securities,
or (ii) subject to Section 514, any Holder who has been a bona fide
Holder of a Security for at least six months may, on behalf of
himself and all others similarly situated, petition any court of
competent jurisdiction for the removal of the Trustee with respect
to all Securities and the appointment of a successor Trustee or
Trustees.

(e) If the Trustee shall resign, be removed or become
incapable of acting, or if a vacancy shall occur in the office of
Trustee for any cause, with respect to the Securities of one or
more series, the Company, by or pursuant to a Board Resolution,
shall promptly appoint a successor Trustee or Trustees with
respect to the Securities of that or those series (it being
understood that any such successor Trustee may be appointed with
respect to the Securities of one or more or all of such series and

 

52

 

that at any time there shall be only one Trustee with respect to the Securities of any particular
series) and shall comply with the applicable requirements of Section 611. If, within one year
after such resignation, removal or incapability, or the occurrence of such vacancy, a successor
Trustee with respect to the Securities of any series shall be appointed by Act of the Holders of a
majority in principal amount of the Outstanding Securities of such series delivered to the Company
and the retiring Trustee, the successor Trustee so appointed shall, forthwith upon its acceptance
of such appointment in accordance with the applicable requirements of Section 611, become the
successor Trustee with respect to the Securities of such series and to that extent supersede the
successor Trustee appointed by the Company. If no successor Trustee with respect to the Securities
of any series shall have been so appointed by the Company or the Holders and accepted appointment
in the manner required by Section 611, any Holder who has been a bona fide Holder of a Security of
such series for at least six months may, on behalf of himself and all others similarly situated,
petition any court of competent jurisdiction for the appointment of a successor Trustee with
respect to the Securities of such series.

(f) The Company shall give notice of each resignation and each removal of the Trustee with
respect to the Securities of any series and each appointment of a successor Trustee with respect
to the Securities of any series to all Holders of Securities of such series in the manner provided
in Section 106. Each notice shall include the name of the successor Trustee with respect to the
Securities of such series and the address of its Corporate Trust Office.

SECTION 611. Acceptance of Appointment by Successor.

(a) In case of the appointment hereunder of a successor Trustee with respect to all
Securities, every such successor Trustee so appointed shall execute, acknowledge and deliver to the
Company and to the retiring Trustee an instrument accepting such appointment, and thereupon the
resignation or removal of the retiring Trustee shall become effective and such successor Trustee,
without any further act, deed or conveyance, shall become vested with all the rights, powers,
trusts and duties of the retiring Trustee; but, on the request of the Company or the successor
Trustee, such retiring Trustee shall, upon payment of its charges, execute and deliver an
instrument transferring to such successor Trustee all the rights, powers and trusts of the retiring
Trustee and shall duly assign, transfer and deliver to such successor Trustee all property and
money held by such retiring Trustee hereunder.

 

53

 

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

(c) Upon request of any such successor Trustee, the Company shall execute any and all
instruments which may be reasonably required for more fully and certainly vesting in and confirming
to such successor Trustee all such rights, powers and trusts referred to in paragraph (a) or (b) of
this Section, as the case may be.

 

54

 

(d) No successor Trustee shall accept its appointment unless at the time of such acceptance
such successor Trustee shall be qualified and eligible under this Article.

SECTION 612. Merger, Conversion, Consolidation or Succession to Business.

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

SECTION 613. Preferential Collection of Claims Against Company.

If and when the Trustee shall be or become a creditor of the Company (or any other obligor
upon the Securities), the Trustee shall be subject to the provisions of the Trust Indenture Act
regarding the collection of claims against the Company (or any such other obligor).

SECTION 614. Appointment of Authenticating Agent.

The Trustee may appoint an Authenticating Agent or Agents with respect to one or more series
of Securities which shall be authorized to act on behalf of the Trustee to authenticate Securities
of such series issued upon original issue and upon exchange, registration of transfer or partial
redemption thereof or pursuant to Section 306, and Securities so authenticated shall be entitled
to the benefits of this Indenture and shall be valid and obligatory for all purposes as if
authenticated by the Trustee hereunder. Wherever reference is made in this Indenture to the
authentication and delivery of Securities by the Trustee, the Trustee’s certificate of
authentication, or the delivery of the Securities to the Trustee for authentication, such
reference shall be deemed to include authentication and delivery on behalf of the Trustee by an
Authenticat-

 

55

 

ing Agent, a certificate of authentication executed on behalf
of the Trustee by an Authenticating Agent or delivery of Securities
to the Authenticating Agent for authentication in place of the
Trustee, as the case may be. Each Authenticating Agent shall be
acceptable to the Company and shall at all times be a corporation
organized and doing business under the laws of the United States of
America, any State thereof or the District of Columbia, authorized
under such laws to act as Authenticating Agent, having a combined
capital and surplus of not less than $50,000,000 and subject to
supervision or examination by Federal, State or District of
Columbia authority. If such Authenticating Agent publishes reports
of condition at least annually, pursuant to law or to the
requirements of said supervising or examining authority, then for
the purposes of this Section, the combined capital and surplus of
such Authenticating Agent shall be deemed to be its combined
capital and surplus as set forth in its most recent report of
condition so published. If at any time an Authenticating Agent
shall cease to be eligible in accordance with the provisions of
this Section, such Authenticating Agent shall resign immediately in
the manner and with the effect specified in this Section.

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

An Authenticating Agent may resign at any time by giving
written notice thereof to the Trustee and to the Company. The
Trustee may at any time terminate the agency of an Authenticating
Agent by giving written notice thereof to such Authenticating Agent
and to the Company. Upon receiving such a notice of resignation or
upon such a termination, or in case at any time such Authenticating
Agent shall cease to be eligible in accordance with the provisions
of this Section, the Trustee may appoint a successor Authenticating
Agent which shall be acceptable to the Company. Any successor
Authenticating Agent upon acceptance of its appointment hereunder
shall become vested with all the rights, powers and duties of its
predecessor hereunder, with like effect as if originally named as
an Authenticating Agent. No successor Authenticat-

 

56

 

ing Agent shall be appointed unless eligible under the provisions of
this Section.

The Trustee agrees to pay to each Authenticating Agent from time
to time reasonable compensation for its services under this Section,
and the Trustee shall be entitled to be reimbursed for such payments,
subject to the provisions of Section 607.

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

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

	 	 	 	 	 
	 	Marine Midland Bank, N .A.

As Trustee

 	 
	 	By  	
 	 
	 	 	As Authenticating Agent 	 
	 	 	 	 
	 
	 	 	 
	 	By  	
 	 
	 	 	Authorized Officer 	 
	 	 	 	 
	 

ARTICLE SEVEN

holders’ lists and reports by trustee and company

SECTION 701. Company to Furnish Trustee Names and Addresses of
Holders.

The Company will furnish or cause to be furnished to the Trustee

(a) semi-annually, not later than May 1 and November 1 in
each year, a list, in such form as the Trustee may reasonably
require, of the names and addresses of the Holders as of the
preceding April 15 or October 15, as the case may be, and

(b) at such other times as the Trustee may request in
writing, within 30 days after the receipt by the Company of any
such re-

 

57

 

quest, a list of similar form and content as of a date not more than 15 days
prior to the time such list is furnished;

excluding from any such list names and addresses received by the
Trustee in its capacity as Security Registrar.

SECTION 702. Preservation of Information; Communications to Holders.

(a) The Trustee shall preserve, in as current a form as is
reasonably practicable, the names and addresses of Holders
contained in the most recent list furnished to the Trustee as
provided in Section 701 and the names and addresses of Holders
received by the Trustee in its capacity as Security Registrar. The
Trustee may destroy any list furnished to it as provided in
Section 701 upon receipt of a new list so furnished.

(b) The rights of the Holders to communicate with other
Holders with respect to their rights under this Indenture or under
the Securities, and the corresponding rights and privileges of the
Trustee, shall be as provided by the Trust Indenture Act.

(c) Every Holder of Securities, by receiving and holding the
same, agrees with the Company and the Trustee that neither the
Company nor the Trustee nor any agent of either of them shall be
held accountable by reason of any disclosure of information as to
names and addresses of Holders made pursuant to the Trust
Indenture Act.

SECTION 703. Reports by Trustee.

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

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

 

58

 

SECTION 704. Reports by Company.

The Company shall file with the Trustee and the Commission, and
transmit to Holders, such information, documents and other reports,
and such summaries thereof, as may be required pursuant to the Trust
Indenture Act at the times and in the manner provided pursuant to
such Act; provided that any such information, documents or reports
required to be filed with the Commission pursuant to Section 13 or
15(d) of the Securities Exchange Act of 1934 shall be filed with the
Trustee within 15 days after the same is so required to be filed
with the Commission.

ARTICLE EIGHT

consolidation, merger, conveyance, transfer or lease

SECTION 801. Company May Consolidate, Etc., Only on Certain
Terms.

The Company shall not consolidate with or merge into any other
corporation or, except for conveyances, transfers or leases to one
or more Subsidiaries which are wholly-owned by the Company (except
for directors’ qualifying shares), convey, transfer or lease its
properties and assets substantially as an entirety to any Person,
and the Company shall not permit any Person to consolidate with or
merge into the Company or convey, transfer or lease its properties
and assets substantially as an entirety to the Company, unless:

(1) in case the Company shall consolidate with or merge into
another corporation or convey, transfer or lease its properties and
assets substantially as an entirety to any Person, the corporation
formed by such consolidation or into which the Company is merged or
the Person which acquires by conveyance or transfer, or which
leases, the properties and assets of the Company substantially as
an entirety shall be a corporation, partnership or trust, shall be
organized and validly existing under the laws of the United States
of America, any State thereof or the District of Columbia and
shall, expressly assume, by an indenture supplemental hereto,
executed and delivered to the Trustee, in form satisfactory to the
Trustee, the due and punctual payment of the principal of (and
premium, if any) and interest on all the Securities and the
performance or observance of every covenant of this Indenture on
the part of the Company to be performed or observed;

 

59

 

(2) immediately after giving effect to such transaction
and treating any indebtedness which becomes an obligation of
the Company or a Subsidiary as a result of such transaction as
having been incurred by the Company or such Subsidiary at the
time of such transaction, no Event of Default, and no event
related to such transaction which, after notice or lapse of
time or both, would become an Event of Default, shall have
happened and be continuing;

(3) if, as a result of any such consolidation or merger
or such conveyance, transfer or lease, properties or assets of
the Company would become subject to a mortgage, pledge, lien,
security interest or other encumbrance which would not be
permitted by this Indenture, the Company or such successor
Person, as the case may be, shall take such steps as shall be
necessary effectively to secure the Securities equally and
ratably with (or prior to) all indebtedness secured thereby;
and

(4) in case the Company shall consolidate with or merge
into
Any other corporation or, except for conveyances,
transfers or leases to one or more Subsidiaries which are
wholly-owned by the Company (except for directors’ qualifying
 shares), convey, transfer or lease its properties and assets
substantially as an entirety-to-any Person, the Company has
delivered to the Trustee an Officers’ Certificate and an
Opinion of counsel, each stating that such consolidation,
merger, conveyance, transfer or lease and, if a supplemental
indenture is required in connection with such transaction,
such supplemental indenture, complies with this Article and
that all conditions precedent herein provided for relating to
such transaction have been complied with.

SECTION 802. Successor Corporation Substituted.

Upon any consolidation of the Company with, or merger by
the Company into, any other corporation or any conveyance,
transfer or lease of the properties and assets of the Company
substantially as an entirety in accordance with Section 801,
the successor corporation formed by such consolidation or into
which the Company is merged or to which such conveyance,
transfer or lease is made shall succeed to, and be substituted
for, and may exercise every right and power of, the Company
under this Indenture with the same effect as if such successor
corporation had been named as the Company herein, and
thereafter, except in the case of a lease, the predecessor
corporation shall be re-

 

60

 

lieved of all obligations and covenants under this Indenture and the Securities.

ARTICLE NINE

supplemental indentures

SECTION 901. Supplemental Indentures Without Consent of Holders.

Without the consent of any Holders, the Company, when authorized
by a Board Resolution, and the Trustee, at any time and from time to
time, may enter into one or more indentures supplemental hereto, in
form satisfactory to the Trustee, for any of the following purposes:

(1) to evidence the succession of another corporation to the
Company and the assumption by any such successor of the covenants
of the Company herein and in the Securities; or

(2) to add to the covenants of the Company for the benefit
of the Holders of all or any series of Securities (and if such
covenants are to be for the benefit of less than all series of
Securities, stating that such covenants are expressly being
included solely for the benefit of such series) or to surrender
any right or power herein conferred upon the Company; or

(3) to add any additional Events of Default; or

(4) to add to or to change any of the provisions of this
Indenture to such extent as shall be necessary to permit or
facilitate the issuance of Securities in bearer form, registrable
or not registrable as to principal, and with or without interest
coupons, or to permit or facilitate the issuance of Securities in
uncertificated form; or

(5) to add to, change or eliminate any of the provisions of
this Indenture in respect of one or more series of Securities,
provided that any such addition, change or elimination (i) shall
neither (A) apply to any Security of any series created prior to
the execution of such supplemental indenture and entitled to the
benefit of such provision nor (B) modify the rights of the Holder
of any such Security with respect to such provision or (ii) shall
become effective only when there is no such Security Outstanding;
or

(6) to secure the Securities pursuant to the requirements of
Section 1006 or otherwise; or

 

61

 

(7) to establish the form or terms of Securities of any series as
permitted by Sections 201 and 301; or

(8) to evidence and provide for the acceptance of appointment
hereunder by a successor Trustee with respect to the Securities of one
or more series and to add to or change any of the provisions of this
Indenture as shall be necessary to provide for or facilitate the
administration of the trusts hereunder by more than one Trustee,
pursuant to the requirements of Section 611(b); or

(9) to supplement any of the provisions of this Indenture to such
extent as shall be necessary to permit or facilitate the defeasance and
discharge of any series of Securities pursuant to Section 403, provided
that any such action shall not adversely affect the interests of the
Holders of Securities of such series or any other series of Securities
in any material respect; or

(10) to cure any ambiguity, to correct or supplement any provision
herein which may be inconsistent with any other provision herein, or to
make any other provisions with respect to matters or questions arising
under this Indenture, provided that such action pursuant to this Clause
(10) shall not adversely affect the interests of the Holders of
Securities of any series in any material respect.

SECTION 902. Supplemental Indentures with Consent of Holders.

With the consent of the Holders of not less than 662/3% in
principal amount of the Outstanding Securities of each series affected
by such supplemental indenture, by Act of said Holders delivered to the
Company and the Trustee, the Company, when authorized by a Board
Resolution, and the Trustee may enter into an indenture or indentures
supplemental hereto for the purpose of adding any provisions to or
changing in any manner or eliminating any of the provisions of this
Indenture or of modifying in any manner the rights of the Holders of
Securities of such series under this Indenture; provided, however, that
no such supplemental indenture shall, without the consent of the Holder
of each Outstanding Security affected thereby,

(1) change the Stated Maturity of the principal of, or any
instalment of principal of or interest on, any Security, or reduce the
principal amount thereof or the rate of interest thereon or any premium
payable upon the redemption thereof, or reduce the amount of the
principal of an Original Issue Discount Security that would be due and
payable upon a declaration of acceleration of the Maturity

 

62

 

thereof pursuant to Section 502, or change any Place of Payment
where, or the coin or currency in which, any Security or any
premium or interest thereon is payable, or 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), or

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

(3) modify any of the provisions of this Section, Section 513
or Section 1009, except to increase any such percentage or to
provide that certain other provisions of this Indenture cannot be
modified or waived without the consent of the Holder of each
Outstanding Security affected thereby, provided, however, that this
clause shall not be deemed to require the consent of any Holder
with respect to changes in the references to “the Trustee” and
concomitant changes in this Section and Section 1009, or the
deletion of this proviso, in accordance with the requirements of
Sections 611(b) and 901(8).

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

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

With respect to any series of Securities issued hereunder, the
Company may, but shall not be obligated to, fix a record date for the
purpose of determining the Persons entitled to consent to any indenture
supplemental hereto. If a record date is fixed, the Holders on such
record date or their duly designated proxies, and only such Persons,
shall be entitled to consent to such supplemental indenture or to
revoke (prior to the

 

63

 

delivery to the Trustee of consents from the Holders of not less
than 662/3% of such Securities) any such consent
previously given, whether or not such Holders remain Holders after
such record date; provided, that no such consent shall be valid or
effective for more than 90 days after such record date.

SECTION 903. Execution of Supplemental Indentures.

In executing, or accepting the additional trusts created by,
any supplemental indenture permitted by this Article or the
modifications thereby of the trusts created by this Indenture, the
Trustee shall be entitled to receive, and (subject to Section 601)
shall be fully protected in relying upon, an Opinion of Counsel
stating that the execution of such supplemental indenture is
authorized or permitted by this Indenture. The Trustee may, but
shall not be obligated to, enter into any such supplemental
indenture which affects the Trustee’s own rights, duties or
immunities under this Indenture or otherwise.

SECTION 904. Effect of Supplemental Indentures.

Upon the execution of any supplemental indenture under this
Article, this Indenture shall be modified in accordance therewith,
and such supplemental indenture shall form a part of this Indenture
for all purposes; and every Holder of Securities theretofore or
thereafter authenticated and delivered hereunder shall be bound
thereby.

SECTION 905. Conformity with Trust Indenture Act.

Every supplemental indenture executed pursuant to this Article
shall conform to the requirements of the Trust Indenture Act.

SECTION 906. Reference in Securities to Supplemental Indentures.

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

 

64

 

ARTICLE TEN

covenants

SECTION 1001. Payment of Principal, Premium and Interest.

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

SECTION 1002. Maintenance of Office or Agency.

The Company will maintain in each Place of Payment for any series of Securities an office or
agency where Securities of that series may be presented or surrendered for payment, where
Securities of that series may be surrendered for registration of transfer or exchange and where
notices and demands to or upon the Company in respect of the Securities of that series and this
Indenture may be served. Unless otherwise designated by the Company by written notice to the
Trustee, such office or agency shall be the office of Marine Midland Bank, N.A., Corporate Trust
Services, 140 Broadway, New York, N.Y. 10015. The Company will give prompt written notice to the
Trustee of the location, and any change in the location, of such office or agency. If at any time
the 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 Corporate Trust Office of the Trustee.

The Company may also from time to time designate one or more other offices or agencies where
the Securities of one or more series may be presented or surrendered for any or all such purposes
and may from time to time rescind such designations; provided, however, that no such designation
or rescission shall in any manner relieve the Company of its obligation to maintain an office or
agency in each Place of Payment for Securities of any series for such purposes. The Company will
give prompt written notice to the Trustee of any such designation or rescission and of any change
in the location of any such other office or agency.

SECTION 1003. Money for Securities Payments to Be Held in Trust.

If the Company shall at any time act as its own Paying Agent with respect to any series of
Securities, it will, on or before each due date of

 

65

 

the principal of (and premium, if any) or interest on any of
the Securities of that series, segregate and hold in trust for the
benefit of the Persons entitled thereto a sum sufficient to pay the
principal (and premium, if any) or interest so becoming due until
such sums shall be paid to such Persons or otherwise disposed of as
herein provided and will promptly notify the Trustee of its action
or failure so to act.

Whenever the Company shall have one or more Paying Agents for
any series of Securities, it will, prior to each due date of the
principal of (and premium, if any) or interest on any Securities of
that series, deposit with a Paying Agent a sum sufficient to pay
such amount, such sum to be held as provided by the Trust Indenture
Act, and (unless such Paying Agent is the Trustee) the Company will
promptly notify the Trustee of its action or failure so to act.

The Company will cause each Paying Agent for any series of
Securities other than the Trustee to execute and deliver to the
Trustee an instrument in which such Paying Agent shall agree with
the Trustee, subject to the provisions of this Section, that such
Paying Agent will (i) comply with the provisions of the Trust
Indenture Act applicable to it as a Paying Agent and (ii) during
the continuance of any default by the Company (or any other obligor
upon the Securities of that series) in the making of any payment in
respect of the Securities of that series, and upon the written
request of the Trustee, forthwith pay to the Trustee all sums held
in trust by such Paying Agent for payment in respect of the
Securities of that series.

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

Any money deposited with the Trustee or any Paying Agent, or
then held by the Company, in trust for the payment of the principal
of (and premium, if any) or interest on any Security of any series
and remaining unclaimed for two years after such principal (and
premium, if any) or

 

66

 

interest has become due and payable shall be paid to the Company
on Company Request, or (if then held by the Company) shall be
discharged from such trust; and the Holder of such Security shall
thereafter, as an unsecured general creditor, look only to the Company
for payment thereof, and all liability of the Trustee or such Paying
Agent with respect to such trust money, and all liability of the
Company as trustee thereof, shall thereupon cease; 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 published in the English language,
customarily published on each Business Day and of general circulation
in the Borough of Manhattan, The City of New York, and in the Place of
Payment for such series if such Place of Payment is outside the
Borough of Manhattan, The City of New York, 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, any
unclaimed balance of such money then remaining will be repaid to the
Company.

SECTION 1004. Corporate Existence.

Subject to Article Eight, the Company will do or cause to be done
all things necessary to preserve and keep in full force and effect its
corporate existence, rights (charter and statutory) and franchises;
provided, however, that the Company shall not be required to preserve
any such right or franchise if the Board of Directors shall determine
that the preservation thereof is no longer desirable in the conduct of
the business of the Company and that the loss thereof is not
disadvantageous in any material respect to the Holders.

SECTION 1005. Maintenance of Properties.

The Company will cause all properties material to the conduct of
its business or the business of any Designated Subsidiary to be
maintained and kept in good condition, repair and working order and
supplied with all necessary equipment and will cause to be made all
necessary repairs, renewals, replacements, betterments and
improvements thereof, all as in the judgment of the Company may be
necessary so that the business carried on in connection therewith may
be properly and advantageously conducted at all times; provided,
however, that nothing in this Section shall prevent the Company from
discontinuing the operation or maintenance of any such properties if
such discontinuance is, in the judgment of the Company, desirable in
the conduct of its business or the business

 

67

 

of any Designated Subsidiary and not disadvantageous in any
material respect to the Holders.

SECTION 1006. Limitation on Liens on Common Stock of
Designated Subsidiaries.

Except as otherwise specified as contemplated by Section 301
for Securities of any series, so long as any Securities of any
series shall remain Outstanding, the Company will not, and will
not permit any Subsidiary to, directly or indirectly, create,
issue, assume, incur or guarantee any indebtedness for money
borrowed which is secured by a mortgage, pledge, lien, security
interest or other encumbrance of any nature on any of the present
or future common stock of a Designated Subsidiary (or any company,
other than the Company, having direct or indirect control of any
Designated Subsidiary), which common stock is directly or
indirectly owned by the Company, unless the Securities and, if the
Company so elects, any other indebtedness of the Company ranking
at least pari passu with the Securities, shall be secured equally
and ratably with (or prior to) such other secured indebtedness for
money borrowed so long as it is outstanding.

SECTION 1007. Defeasance of Certain Obligations and Certain
Events of Default.

If this Section 1007 is specified, as contemplated by Section
301, to be applicable to Securities of any series, the Company may
omit to comply with any term, provision or condition set forth in
Section 1005 or 1006, and Section 501(4) with respect to Sections
1005 and 1006, and Section 501(5) shall be deemed not to be an
Event of Default, in each case with respect to the Securities of
any series, provided that the following conditions have been
satisfied:

(1) the Company has deposited or caused to be deposited with
the Trustee (or another corporate trustee appointed by the Company
satisfying the requirements of Section 609 who shall have agreed
to comply with the provisions of this Section 1007) irrevocably
(irrespective of whether the conditions in subparagraphs (2), (3),
(4), (5), (6), (7) and (8) below have been satisfied, but subject
to the provisions of Section 402(c) and the last paragraph of
Section 1003), as trust funds in trust, specifically pledged as
security for, and dedicated solely to, the benefit of the Holders
of the Securities of that series, with reference to this Section
1007, (A) money in an amount, or (B) U.S. Government Obligations
which through the scheduled payment

 

68

 

of interest and principal in respect thereof in accordance with their terms will provide not later
than one day before the due date of any payment referred to in clause (i) or (ii) of this
subparagraph (1) money in an amount, or (C) a combination thereof, sufficient, in the opinion of a
nationally recognized firm of independent certified public accountants expressed in a written
certification thereof delivered to the Trustee, to pay and discharge, and which shall be applied
by the Trustee (or such other corporate trustee, as the case may be) to pay and discharge, (i) the
principal of (and premium, if any) and each instalment of principal (and premium, if any) and
interest on the Outstanding Securities of that series on the Stated Maturity of such principal or
instalment of principal or interest and (ii) any mandatory sinking fund payments or analogous
payments applicable to Securities of such series on the day on which such payments are due and
payable in accordance with the terms of this Indenture and of such Securities;

(2) such deposit shall not cause the Trustee with respect to the Securities of that series to
have a conflicting interest as defined in Section 608 and for purposes of the Trust Indenture Act
with respect to the Securities of any series;

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

(4) no Event of Default under Sections 501(1), 501(2) or 501(3), or event which with the
lapse of time would become an Event of Default under Section 501(1), with respect to the
Securities of that series shall have occurred and be continuing on the date of such deposit, and
no Event of Default under Section 501(6) or Section 501(7) or event which with the giving of
notice or lapse of time, or both, would become an Event of Default under Section 501(6) or Section
501(7) shall have occurred and be continuing on the 91st day after such date of deposit;

(5) the Company has delivered to the Trustee an Opinion of Counsel to the effect that Holders
of the Securities of such series will not recognize income, gain or loss for federal income tax
purposes as a result of such deposit and defeasance of certain obligations and certain Events of
Default and will be subject to federal income tax on 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;

 

69

 

(6) if the Securities of that series are then listed on
the New York Stock Exchange, Inc., the Company shall have
delivered to the Trustee an Opinion of Counsel to the effect
that such deposit and defeasance will not cause such
Securities to be delisted;

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

(8) if such deposit is to be made with a trustee, other
than the Trustee, pursuant to subparagraph (1) above, such
other trustee shall have delivered to the Trustee a
certificate satisfactory in form to the Trustee stating that
such deposit has been made in accordance with the provisions
of this Section 1007 and that such other trustee agrees to
comply with the provisions of Sections 402, 1007 and the last
paragraph of Section 1003 applicable to it, and the Trustee
shall be fully protected in relying upon such certificate.

In the event that any other trustee is appointed by the
Company pursuant to subparagraph (1) above, the Trustee shall
have no responsibility with respect to the performance by
such other trustee of its duties or with respect to any
monies or U.S. Government Obligations deposited with such
other trustee.

SECTION 1008. Statement by Officers as to Default.

The Company will deliver to the Trustee, within 120 days
after the end of each fiscal year of the Company ending after
the date hereof, an Officers’ Certificate, stating whether or
not to the best knowledge of the signers thereof the Company
is in default in the performance and observance of any of the
terms, provisions and conditions of this Indenture (without
regard to any period of grace or requirement of notice
provided hereunder) and if the Company shall be in default,
specifying all such defaults and the nature and status
thereof of which they may have knowledge.

SECTION 1009. Waiver of Certain Covenants.

The Company may omit in any particular instance to
comply with any term, provision or condition set forth in
Sections 1004 to 1006, inclusive, with respect to the
Securities of any series if before the time for such
compliance the Holders of at least a majority in principal
amount of the Outstanding Securities of such series shall, by
Act of such Hold-

 

70

 

ers, either waive such compliance in such instance or generally waive compliance with such
term, provision or condition, but no such waiver shall extend to or affect such term,
provision or condition except to the extent so expressly waived, and, until such waiver shall
become effective, the obligations of the Company and the duties of the Trustee in respect of
any such term, provision or condition shall remain in full force and effect.

ARTICLE ELEVEN

redemption of securities

SECTION 1101. Applicability of Article.

Securities of any series which are redeemable before their Stated Maturity shall be
redeemable in accordance with their terms and (except as otherwise specified as contemplated by
Section 301 for Securities of any series) in accordance with this Article.

SECTION 1102. Election to Redeem; Notice to Trustee.

The election of the Company to redeem any Securities shall be evidenced by an Officers’
Certificate. In case of any redemption at the election of the Company of less than all the
Securities of any series, the Company shall, at least 60 days prior to the Redemption Date
fixed by the Company (unless a shorter notice shall be satisfactory to the Trustee), notify the
Trustee of such Redemption Date, of the principal amount of Securities of such series to be
redeemed and, if applicable, of the tenor of the Securities to be redeemed. In the case of any
redemption of Securities prior to the expiration of any restriction on such redemption provided
in the terms of such Securities or elsewhere in this Indenture, the Company shall furnish the
Trustee with an Officers’ Certificate evidencing compliance with such restriction.

SECTION 1103. Selection by Trustee of Securities to Be Redeemed.

If less than all the Securities of any series are to be redeemed (unless all of the
Securities of such series and of a specified tenor are to be redeemed), the particular
Securities to be redeemed shall be selected not more than 60 days prior to the Redemption Date
by the Trustee, from the Outstanding Securities of such series not previously called for
redemption, by lot or such other method as the Trustee shall deem fair and appropriate and
which may provide for the selection for redemption of

 

71

 

portions (equal to the minimum authorized denomination for
Securities of that series or any integral multiple thereof) of the
principal amount of Securities of such series of a denomination
larger than the minimum authorized denomination for Securities of
that series. If less than all of the Securities of such series and of
a specified tenor are to be redeemed, the particular Securities to be
redeemed shall be selected not more than 60 days prior to the
Redemption Date by the Trustee, from the Outstanding Securities of
such series and specified tenor not previously called for redemption
in accordance with the preceding sentence.

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

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

SECTION 1104. Notice of Redemption.

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

All notices of redemption shall state:

(1) the Redemption Date,

(2) the Redemption Price,

(3) if less than all the Outstanding Securities of any series
are to be redeemed, the identification (and, in the case of partial
redemption of any Securities, the principal amounts) of the
particular Securities to be redeemed,

(4) that on the Redemption Date the Redemption Price will become
due and payable upon each such Security to be redeemed and, if
applicable, that interest thereon will cease to accrue on and after
said date,

(5) the place or places where such Securities are to be
surrendered for payment of the Redemption Price, and

 

72

 

(6) that the redemption is for a sinking fund, if such is the
case.

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

SECTION 1105. Deposit of Redemption Price.

Prior to any Redemption Date, the Company shall deposit with the
Trustee or with a Paying Agent (or, if the Company is acting as its own
Paying Agent, segregate and hold in trust as provided in Section 1003)
an amount of money sufficient to pay the Redemption Price of, and
(except if the Redemption Date shall be an Interest Payment Date)
accrued interest on, all the Securities which are to be redeemed on
that date.

SECTION 1106. Securities Payable on Redemption Date.

Notice of redemption having been given as aforesaid, the
Securities so to be redeemed shall, on the Redemption Date, become due
and payable at the Redemption Price therein specified, and from and
after such date (unless the Company shall default in the payment of the
Redemption Price and accrued interest) such Securities shall cease to
bear interest. Upon surrender of any such Security for redemption in
accordance with said notice, such Security shall be paid by the Company
at the Redemption Price, together with accrued interest to the
Redemption Date; provided, however, that, unless otherwise specified as
contemplated by Section 301, instalments of interest whose Stated
Maturity is on or prior to the Redemption Date shall be payable to the
Holders of such Securities, or one or more Predecessor Securities,
registered as such at the close of business on the relevant Record
Dates according to their terms and the provisions of Section 307.

If any Security called for redemption shall not be so paid upon
surrender thereof for redemption, the principal (and premium, if any)
shall, until paid, bear interest from the Redemption Date at the rate
prescribed therefor in the Security.

SECTION 1107. Securities Redeemed in Part.

Any Security (including any Global Security) which is to be
redeemed only in part shall be surrendered at a Place of Payment
therefor (with, if the Company or the Trustee so requires, due
endorsement by, or a written instrument of transfer in form
satisfactory to the Company

 

73

 

and the Trustee duly executed by, the Holder thereof or his attorney duly
authorized in writing), and the Company shall execute, and the Trustee shall
authenticate and deliver to the Holder of such Security without service
charge, a new Security or Securities of the same series and of like tenor, of
any authorized denomination as requested by such Holder, in aggregate
principal amount equal to and in exchange for the unredeemed portion of the
principal of the Security so surrendered; provided, that if a Global Security
is so surrendered, the new Global Security shall be in a denomination equal to
the unredeemed portion of the principal of the Global Security so surrendered.

ARTICLE TWELVE

sinking funds

SECTION 1201. Applicability of Article.

The provisions of this Article shall be applicable to any sinking fund
for the retirement of Securities of a series except as otherwise specified as
contemplated by Section 301 for Securities of such series.

The minimum amount of any sinking fund payment provided for by the terms
of Securities of any series is herein referred to as a “mandatory sinking fund
payment”, and any payment in excess of such minimum amount provided for by the
terms of Securities of any series is herein referred to as an “optional
sinking fund payment.” If provided for by the terms of Securities of any
series, the cash amount of any sinking fund payment may be subject to
reduction as provided in Section 1202. Each sinking fund payment shall be
applied to the redemption of Securities of any series as provided for by the
terms of Securities of such series.

SECTION 1202. Satisfaction of Sinking Fund Payments with
Securities.

The Company (1) may deliver Outstanding Securities of a series (other than any previously called
for redemption) and (2) may apply as a credit Securities of a series which have been redeemed
either at the election of the Company pursuant to the terms of such Securities or through the
application of permitted optional sinking fund payments pursuant to the terms of such Securities,
in each case in satisfaction of all or any part of any sinking fund payment with respect to the
Securities of such series required to be made pursuant to the terms of such

 

74

 

‘
Securities as provided for by the terms of such series; provided that such Securities have not
been previously so credited. Such Securities shall be received and credited for such purpose by
the Trustee at the Redemption Price specified in such Securities for redemption through operation
of the sinking fund and the amount of such sinking fund payment shall be reduced accordingly.

SECTION 1203. Redemption of Securities for Sinking Fund.

Not less than 60 days prior to each sinking fund payment date for any series of Securities
(unless a shorter period of time shall be acceptable to the Trustee), the Company will deliver to
the Trustee an Officers’ Certificate specifying the amount of the next ensuing sinking fund
payment for that series pursuant to the terms of that series, the portion thereof, if any, which
is to be satisfied by payment of cash and the portion thereof, if any, which is to be satisfied by
delivering and crediting Securities of that series pursuant to Section 1202 and will also deliver
to the Trustee any Securities to be so delivered. Not less than 30 days before each such sinking
fund payment date the Trustee shall select the Securities to be redeemed upon such sinking fund
payment date in the manner specified in Section 1103 and cause notice of the redemption thereof to
be given in the name of and at the expense of the Company in the manner provided in Section 1104.
Such notice having been duly given, the redemption of such Securities shall be made upon the terms
and in the manner stated in Sections 1106 and 1107.

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

 

75

 

IN WITNESS WHEREOF, the parties hereto have caused this Indenture to be
duly executed, and their respective corporate seals to be hereunto affixed
and attested, all as of the day and year first above written.

	 	 	 	 	 
	 	CIGNA CORPORATION

 	 
	 	By  	/s/ PAUL H. ROHRKEMPER
 	 
	 	 	Treasurer 	 
	 	 	 	 
	 

[SEAL]

ATTEST:

/s/ Carol J. Ward

 

Corporate Secretary

	 	 	 	 	 
	 	MARINE MIDLAND BANK, N.A.

 	 
	 	By:  	/s/ robert a. conrad
 	 
	 	 	Assistant Vice President 	 
	 	 	 	 
	 

[SEAL]

ATTEST:

/s/ MARCIA MARKOWSKI

 

Assistant Corporate Trust Officer

 

76

 

COUNTY OF PHILADELPHIA

COMMONWEALTH OF PENNSYLVANIA }SS.:

On the 13th day of January, 1994, before me personally came Paul H. Rohrkemper, to me
known, who, being by me duly sworn, did depose and say that he is the Treasurer of CIGNA
Corporation, one of the corporations described in and which executed the foregoing instrument;
that he knows the seal of said corporation; that the seal affixed to said instrument is such
corporate seal; that it was so affixed by authority of the Board of Directors of said corporation,
and that he signed his name thereto by like authority.

	 	 	 	 	 
	 	 	 
	 	                                                              /s/ noreen m. tarr
 	 
	 	 	 
	 	 	 
	 

[SEAL]

	 	 	 	 	 
	STATE OF NEW YORK
	 	}	 	ss.:

	COUNTY OF NEW YORK

	 	 

 

77

 

On the 14th day of January, 1994, before me personally came Robert A. Conrad, to me known,
who, being by me duly sworn, did depose and say that he is Assistant Vice President of Marine
Midland Bank, N.A., one of the corporations described in and which executed the foregoing
instrument; that he knows the seal of said corporation; that the seal affixed to said instrument is
such corporate seal; that it was so affixed by authority of the Board of Directors of said
corporation, and that he signed his name thereto by like authority.

	 	 	 	 	 
	 	 	 
	 	                                      /s/ metin caner
 	 
	 	 	 
	 	 	 
	 

[SEAL]

 

78

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00168-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00168-of-00352.parquet"}]]