Document:

EX-10.8

Exhibit 10.9

FORM OF REGISTRATION RIGHTS AGREEMENT

BY AND AMONG

MFRESIDENTIAL INVESTMENTS, INC.

AND

CERTAIN PERSONS LISTED ON SCHEDULE 1 HERETO

dated as of

                     , 2008

 

 

TABLE OF CONTENTS

	 	 	 	 	 	 	 
	 	 	 	 	Page
	SECTION 1.

	 	DEFINITIONS
	 	 	1	 
	 
	 	 	 	 	 	 
	SECTION 2.

	 	SHELF REGISTRATIONS
	 	 	3	 
	 
	 	 	 	 	 	 
	SECTION 3.

	 	BLACK-OUT PERIODS
	 	 	4	 
	 
	 	 	 	 	 	 
	SECTION 4.

	 	REGISTRATION PROCEDURES
	 	 	4	 
	 
	 	 	 	 	 	 
	SECTION 5.

	 	INDEMNIFICATION
	 	 	7	 
	 
	 	 	 	 	 	 
	SECTION 6.

	 	MARKET STAND-OFF AGREEMENT.
	 	 	9	 
	 
	 	 	 	 	 	 
	SECTION 7.

	 	COVENANTS RELATING TO RULE 144
	 	 	9	 
	 
	 	 	 	 	 	 
	SECTION 8.

	 	MISCELLANEOUS
	 	 	9	 

-1-

 

REGISTRATION RIGHTS AGREEMENT

     This REGISTRATION RIGHTS AGREEMENT (this “Agreement”), dated as of                     ,
2008, is made and entered into by and among MFResidential Investments, Inc., a Maryland corporation
(the “Company”), and certain persons listed on Schedule 1 hereto (such persons, in
their capacity as holders of Registrable Securities, the “Holders” and each the
“Holder”). Capitalized terms not otherwise defined herein shall have the meanings ascribed
to them in Section 1 hereto.

RECITALS:

     WHEREAS, the Company is in the process of registering shares of its common stock, par value
$0.01 per share (“Common Stock”), with the Securities and Exchange Commission (the
“Commission”) under the Securities Act, pursuant to the registration statement of the
Company on Form S-11 (File No. 333-149196) (the “Registration Statement”), pursuant to
which the Company intends to conduct an underwritten initial public offering of shares of the
Company’s Common Stock (the “Public Offering”); and

     WHEREAS, the Company, MFR Operating Partnership, LP (the “Operating Partnership”), a
Delaware limited partnership, and MFA Mortgage Investments, Inc. (“MFA”) have entered into
a Stock and OP Units Purchase Agreement, dated as of May                     , 2008 (the “Purchase
Agreement”), pursuant to which in a private placement concurrent with the Public Offering, (i)
the Company will issue and sell shares of Common Stock to MFA and (ii) the Operating Partnership
will sell to MFA units of limited partner interest (“OP Units”) in the Operating
Partnership, exchangeable, under certain circumstances, into shares of Common Stock on a
one-for-one basis; and

     WHEREAS, the Company desires to enter into this Agreement with the Holders in order to grant
the Holders the registration rights contained herein.

     NOW, THEREFORE, in consideration of the premises and the mutual promises and covenants
contained in this Agreement, and for other good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, the parties hereto hereby agree as follows:

     Section 1. Definitions. As used in this Agreement, the following terms shall have the
following meanings:

     “Affiliate” shall mean, when used with reference to a specified Person, (i) any
Person that directly or indirectly through one or more intermediaries, Controls or is Controlled by
or is under common Control with the specified Person; (ii) any Person who, from time to time, is a
member of the Immediate Family of a specified Person; (iii) any Person who, from time to time, is
an officer or director or manager of a specified Person; or (iv) any Person who, directly or
indirectly, is the beneficial owner of 50% or more of any class of equity securities or other
ownership interests of the specified Person, or of which the specified Person is directly or
indirectly the owner of 50% or more of any class of equity securities or other ownership interests.

     “Agreement” shall mean this Registration Rights Agreement as originally executed and
as amended, supplemented or restated from time to time.

     “Board” shall mean the Board of Directors of the Company.

 

 

     “Business Day” shall mean each day other than a Saturday, a Sunday or any other day
on which banking institutions in the State of New York are authorized or obligated by law or
executive order to be closed.

     “Common Stock” shall have the meaning set forth in the Recitals hereof.

     “Commission” shall have the meaning set forth in the Recitals hereof.

     “Company” shall have the meaning set forth in the introductory paragraph hereof.

     “Control” (including the terms “Controlling,” “Controlled by” and
“under common Control with”) shall mean the possession, direct or indirect, of the power to
direct or cause the direction of the management and policies of a Person through the ownership of
Voting Power, by contract or otherwise.

     “Exchange Act” shall mean the Securities Exchange Act of 1934, as amended (or any
corresponding provision of succeeding law) and the rules and regulations thereunder.

     “Holder” shall mean each holder of the Common Stock or OP Units, listed in Schedule 1
hereto, in his, her or its capacity as a holder of Registrable Securities. For purposes of this
Agreement, the Company may deem and treat the registered holder of a Registrable Security as the
Holder and absolute owner thereof, unless notified to the contrary in writing by the registered
Holder thereof.

     "Inspectors” shall have the meaning set forth in Section 4(a)(xv) hereof.

     “Investors” shall have the meaning set forth in the Recitals hereof.

     “OP Units” shall have the meaning set forth in the Recitals hereof.

     “Person” shall mean any individual, partnership, corporation, limited liability
company, joint venture, association, trust, unincorporated organization or other governmental or
legal entity.

     “Public Offering” shall have the meaning set forth in the Recitals hereof.

     "Records” shall have the meaning set forth in Section 4(a)(xv) hereof.

     “Registrable Securities” shall mean at any time (i) shares of Common Stock issued
pursuant to the Purchase Agreement and (ii) Common Stock that may be acquired by the Holders in
connection with the exercise by such Holders of the exchange rights associated with OP Units issued
pursuant to the Purchase Agreement, together with, in either case, any class of equity securities
of the Company or of a successor to the entire business of the Company which are issued in exchange
for such shares of Common Stock; provided, however, such Registrable Securities
shall cease to be Registrable Securities when (A) a registration statement with respect to the sale
of such Registrable Securities shall have become effective under the Securities Act and all such
Registrable Securities shall have been disposed of in accordance with such registration statement
or (B) such Registrable Securities shall have been sold under circumstances in which all of the
applicable conditions of Rule 144 (or any successor provision) under the Securities Act are met.

     “Registration Expenses” shall mean (i) the fees and disbursements of counsel and
independent public accountants for the Company incurred in connection with the Company’s
performance of or compliance with this Agreement, including the expenses of any special audits or
“comfort” letters required by or incident to such performance and compliance, and any premiums and
other costs of

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policies of insurance obtained by the Company against liabilities arising out of the sale of
any securities and (ii) all registration, filing and stock exchange fees, all fees and expenses of
complying with securities or “blue sky” laws, all fees and expenses of custodians, transfer agents
and registrars, all printing expenses, messenger and delivery expenses and any fees and
disbursements of one common counsel retained by a majority of the Holders; provided,
however, “Registration Expenses” shall not include any out-of-pocket expenses of
the Holders, transfer taxes, underwriting or brokerage commissions or discounts associated with
effecting any sales of Registrable Securities that may be offered, which expenses shall be borne by
each Holder of Registrable Securities on a pro rata basis with respect to the Registrable
Securities so sold.

     “Securities Act” shall mean the Securities Act of 1933, as amended (or any successor
corresponding provision of succeeding law), and the rules and regulations thereunder.

     “Shelf Registration Statement” shall have the meaning set forth in Section
2(a) hereof.

     “Stand-Off Period” shall have the meaning set forth in Section 6 hereof.

     “Voting Power” shall mean voting securities or other voting interests ordinarily (and
apart from rights accruing under special circumstances) having the right to vote in the election of
board members or Persons performing substantially equivalent tasks and responsibilities with
respect to a particular entity.

     Section 2. Shelf Registrations.

          a. Shelf Registration. The Company agrees to use commercially reasonable efforts to
file with the Commission no later than 37 months following the date of the prospectus relating to
the Public Offering and during a period of time that the issuer of the Registrable Securities is
eligible to use Form S-3 (or any similar or successor form), a registration statement with respect
to the Registrable Securities under the Securities Act on Form S-3 (or any similar or successor
form) or, if the Company is not then eligible to use Form S-3,
Form S-11 (or any similar or successor form) for the offering to be made on a continuous basis pursuant to Rule 415 under the Securities
Act (the “Shelf Registration Statement”), and will use commercially reasonable efforts to
cause such Shelf Registration Statement to be declared effective by the Commission as soon as
practicable thereafter. The Shelf Registration Statement shall be on an appropriate form and the
registration statement and any form of prospectus included therein (or prospectus supplement
relating thereto) shall reflect the plan of distribution or method of sale as the Holders may from
time to time notify the Company.

          b. Effectiveness. The Company shall use commercially reasonable efforts to keep the
Shelf Registration Statement continuously effective for the period beginning on the date on which
the Shelf Registration Statement is declared effective and ending on the second anniversary
thereof. During the period that the Shelf Registration Statement is effective, the Company shall
supplement or make amendments to the Shelf Registration Statement, if required by the Securities
Act or if reasonably requested by the Holders (whether or not required by the form on which the
securities are being registered), including to reflect any specific plan of distribution or method
of sale, and shall use its commercially reasonable efforts to have such supplements and amendments
declared effective, if required, as soon as practicable after filing.

     Section 3. Black-Out Periods.

     Notwithstanding anything herein to the contrary, the Company shall have the right, exercisable
from time to time by delivery of a notice authorized by the Board, on not more than four occasions
during the period of effectiveness of the Shelf Registration Statement, to require the Holders not
to sell pursuant to a registration statement or similar document under the Securities Act filed
pursuant to Section 2 hereof

3

 

or to suspend the effectiveness thereof if at the time of the delivery of such notice, (i) the
Board has considered a plan to engage no later than 90 days following the date of such notice in a
firm commitment underwritten public offering or (ii) a majority of the independent directors of the
Company has reasonably and in good faith determined that such registration and offering, continued
effectiveness or sale would materially interfere with any material transaction involving the
Company. If the consummation of any business combination by the Company has occurred or is
probable for purposes of Rule 3-05 or Article 11 of Regulation S-X under the Securities Act, the
rights of the Holders to offer, sell or distribute any Registrable Securities pursuant to the Shelf
Registration Statement shall be suspended until the date on which the Company has filed the
financial information required by Rule 3-05 or Article 11 of Regulation S-X to be included or
incorporated by reference, as applicable, in the Shelf Registration. The Company, as soon as
practicable, shall (i) give the Holders prompt written notice in the event that the Company has
suspended sales of Registrable Securities pursuant to this Section 3, (ii) give the Holders
prompt written notice of the completion of such offering, the completion or disclosure of the
material transaction or the filing of the required financial information with the Commission, as
the case may be, and (iii) promptly file any amendment necessary for any registration statement or
prospectus of the Holders in connection with the completion of such event.

     Each Holder agrees by acquisition of the Registrable Securities that upon receipt of any
notice from the Company of the happening of any event of the kind described in this Section 3, such
Holder will forthwith discontinue its disposition of Registrable Securities pursuant to the Shelf
Registration Statement relating to such Registrable Securities until such Holder’s receipt of the
notice of completion of such event.

     Section 4. Registration Procedures.

          a. In connection with the filing of any registration statement as provided in this Agreement,
the Company shall use commercially reasonable efforts to, as expeditiously as reasonably
practicable:

          (i) prepare and file with the Commission the requisite registration statement
(including a prospectus therein and any supplement thereto) to effect such registration and
use its commercially reasonable efforts to cause such registration statement to become and
remain effective for the period set forth in Section 2(b); provided,
however, that before filing such registration statement or any amendments or
supplements thereto, the Company will furnish copies of all such documents proposed to be
filed to counsel for the sellers of Registrable Securities covered by such registration
statement and provide reasonable time for such sellers and their counsel to comment upon
such documents if so requested by a Holder;

          (ii) prepare and file with the Commission such amendments and supplements to such
registration statement and the prospectus used in connection therewith as may be necessary
to maintain the effectiveness of such registration and to comply with the provisions of the
Securities Act with respect to the disposition of all securities covered by such
registration statement during the period in which such registration statement is required to
be kept effective;

          (iii) furnish to each Holder of the securities being registered, without charge, such
number of conformed copies of such registration statement and of each such amendment and
supplement thereto (in each case including all exhibits) other than those which are being
incorporated into such registration statement by reference, such number of copies of the
prospectus contained in such registration statements (including each complete prospectus and
any summary prospectus) and any other prospectus filed under Rule 424 under the Securities
Act in

4

 

conformity with the requirements of the Securities Act, and such other documents,
including documents incorporated by reference, as the Holders may reasonably request;

          (iv) register or qualify all Registrable Securities under such other securities or
“blue sky” laws of such jurisdictions as the Holders and the underwriters of the securities
being registered, if any, shall reasonably request, to keep such registration or
qualification in effect for so long as such registration statement remains in effect, and
take any other action which may be reasonably necessary or advisable to enable the Holders
to consummate the disposition in such jurisdiction of the securities owned by the Holders,
except that the Company shall not for any such purpose be required to qualify generally to
do business as a foreign company or to register as a broker or dealer in any jurisdiction
where it would not otherwise be required to qualify but for this Section 4(a)(iv), or to
consent to general service of process in any such jurisdiction, or to be subject to any
material tax obligation in any such jurisdiction where it is not then so subject;

          (v) immediately notify the Holders at any time when the Company becomes aware that a
prospectus relating thereto is required to be delivered under the Securities Act, of the
happening of any event as a result of which the prospectus included in such registration
statement, as then in effect, includes an untrue statement of a material fact or omits to
state any material fact required to be stated therein or necessary to make the statements
therein not misleading in light of the circumstances under which they were made, and, at the
request of the Holders, promptly prepare and furnish to the Holders a reasonable number of
copies of a supplement to or an amendment of such prospectus as may be necessary so that, as
thereafter delivered to the purchasers of such securities, such prospectus shall not include
an untrue statement of a material fact or omit to state a material fact required to be
stated therein or necessary to make the statements therein not misleading in the light of
the circumstances under which they were made;

          (vi) comply or continue to comply in all material respects with the Securities Act and
the Exchange Act and with all applicable rules and regulations of the Commission thereunder
so as to enable any Holder to sell its Registrable Securities pursuant to Rule 144
promulgated under the Securities Act, as further agreed to in Section 6 hereof;

          (vii) make available to its security holders, as soon as reasonably practicable, an
earnings statement covering the period of at least 12 months, but not more than 18 months,
beginning with the first calendar month after the effective date of such registration
statement, which earnings statement shall satisfy the provisions of Section 11(a) of the
Securities Act;

          (viii) provide a transfer agent and registrar for all Registrable Securities covered by
such registration statement not later than the effective date of such registration
statement;

          (ix) cooperate with the Holders to facilitate the timely preparation and delivery of
certificates representing Registrable Securities to be sold and not bearing any Securities
Act legend; and enable certificates for such Registrable Securities to be issued for such
number of shares and registered in such names as the Holders may reasonably request in
writing at least two Business Days prior to any sale of Registrable Securities;

          (x) list all Registrable Securities covered by such registration statement on any
securities exchange or national quotation system on which any such class of securities is
then listed or quoted and cause to be satisfied all requirements and conditions of such
securities exchange or national quotation system to the listing or quoting of such
securities that are

5

 

reasonably within the control of the Company including, without limitation, registering
the applicable class of Registrable Securities under the Exchange Act, if appropriate, and
using commercially reasonable efforts to cause such registration to become effective
pursuant to the rules of the Commission;

          (xi) in connection with any sale, transfer or other disposition by any Holder of any
Registrable Securities pursuant to Rule 144 promulgated under the Securities Act, cooperate
with such Holder to facilitate the timely preparation and delivery of certificates
representing the Registrable Securities to be sold and not bearing any Securities Act
legend, and enable certificates for such Registrable Securities to be for such number of
shares and registered in such name as the Holders may reasonably request in writing at least
three Business Days prior to any sale of Registrable Securities;

          (xii) notify each Holder, promptly after it shall receive notice thereof, of the time
when such registration statement, or any post-effective amendments to the registration
statement, shall have become effective, or a supplement to any prospectus forming part of
such registration statement has been filed or when any document is filed with the Commission
which would be incorporated by reference into the prospectus;

          (xiii) notify each Holder of any request by the Commission for the amendment or
supplement of such registration statement or prospectus for additional information;

          (xiv) advise each Holder, promptly after it shall receive notice or obtain knowledge
thereof, of (A) the issuance of any stop order, injunction or other order or requirement by
the Commission suspending the effectiveness of such registration statement or the initiation
or threatening of any proceeding for such purpose and use all commercially reasonable
efforts to prevent the issuance of any stop order, injunction or other order or requirement
or to obtain its withdrawal if such stop order, injunction or other order or requirement
should be issued, (B) the suspension of the registration of the subject shares of the
Registrable Securities in any state jurisdiction and (C) the removal of any such stop order,
injunction or other order or requirement or proceeding or the lifting of any such
suspension;

          (xv) make available for inspection by any Holder of such Registrable Securities, if
such Holder has a due diligence defense under the Securities Act, any underwriter
participating in any disposition pursuant to such registration statement and any attorney,
accountant or other professional retained by any such Holder or underwriter (collectively,
the “Inspectors”), all financial and other records, pertinent corporate documents and
properties of the Company (collectively, the “Records”) as shall be reasonably necessary to
enable them to exercise their due diligence responsibility, and cause the Company’s
officers, directors and personnel to supply all information reasonably requested by any
Inspectors in connection with such registration statement. Records which the Company
determines, in good faith, to be confidential and which it notifies the Inspectors are
confidential shall not be disclosed by the Inspectors unless (i) the disclosure of such
Records is necessary to avoid or correct a misstatement or omission in such registration
statement or (ii) the release of such Records is ordered pursuant to a subpoena or other
order from a court of competent jurisdiction. Each Holder of such Registrable Securities
agrees that information obtained by it as a result of such inspections shall be deemed
confidential and shall not be used by it as the basis for any market transactions in the
securities of the Company or its Affiliates unless and until such is made generally
available to the public. Each Holder of such Registrable Securities further agrees that it
will, upon learning that disclosure of such Records is sought in a court of competent
jurisdiction,

6

 

give notice to the Company and allow the Company, at its expense, to undertake
appropriate action to prevent disclosure of the Records deemed confidential; and

          (xvi) furnish to each Holder, if it has a due diligence defense under the Securities
Act, and to each underwriter, if any, a signed counterpart, addressed to such Holder or
underwriter, of (i) an opinion or opinions of counsel to the Company and (ii) if eligible
under SAS 72, a comfort letter or comfort letters from the Company’s independent public
accountants, each in customary form and covering such matters of the type customarily
covered by opinions or comfort letters, as the case may be, as the Holders of a majority of
the Registrable Securities included in such offering or the managing underwriter or
underwriters therefor reasonably requests.

          b. In connection with the filing of any registration statement covering Registrable
Securities, each Holder shall furnish in writing to the Company such information regarding such
Holder (and any of its Affiliates), the Registrable Securities to be sold, the intended method of
distribution of such Registrable Securities and such other information requested by the Company as
is necessary or it deems advisable for inclusion in the registration statement relating to such
offering pursuant to the Securities Act. Such writing shall expressly state that it is being
furnished to the Company for use in the preparation of a registration statement, preliminary
prospectus, supplementary prospectus, final prospectus or amendment or supplement thereto, as the
case may be.

          Each Holder agrees by acquisition of the Registrable Securities that (i) upon receipt of any
notice from the Company of the happening of any event of the kind described in Section
4(a)(v), such Holder will forthwith discontinue its disposition of Registrable Securities
pursuant to the registration statement relating to such Registrable Securities until such Holder’s
receipt of the copies of the supplemented or amended prospectus contemplated by Section
4(a)(v); (ii) upon receipt of any notice from the Company of the happening of any event of the
kind described in clause (A) of Section 4(a)(xiv), such Holder will discontinue its
disposition of Registrable Securities pursuant to such registration statement until such Holder’s
receipt of the notice described in clause (C) of Section 4(a)(xiv); and (iii) upon receipt
of any notice from the Company of the happening of any event of the kind described in clause (B) of
Section 4(a)(xiv), such Holder will discontinue its disposition of Registrable Securities pursuant
to such registration statement in the applicable state jurisdiction(s) until such Holder’s receipt
of the notice described in clause (C) of Section 4(a)(xiv).

     Section 5. Indemnification.

          a. Indemnification by the Company. The Company agrees to indemnify and hold harmless
each Holder, its partners, officers, directors, trustees, stockholders, employees, agents and
investment advisers, and each Person, if any, who Controls such Holder, together with the partners,
officers, directors, trustees, stockholders, employees, agents and investment advisers of such
Controlling Person, against any losses, claims, damages, and expenses (including, without
limitation, reasonable attorneys’ fees), joint or several, to which the Holders or any such
indemnitees may become subject under the Securities Act or otherwise, insofar as such losses,
claims, damages, liabilities and expenses (or actions or proceedings, whether commenced or
threatened, in respect thereof) arise out of or are based upon any untrue statement or alleged
untrue statement of any material fact contained in the registration statement under which such
Registrable Securities were registered and sold under the Securities Act, any preliminary
prospectus, final prospectus or summary prospectus contained therein, or any amendment or
supplement thereto, or arising out of or based upon any omission or alleged omission to state
therein a material fact required to be stated therein or necessary to make the statements therein,
in light of the circumstances under which they were made, not misleading or any violation of the
Securities Act or state securities laws or rules thereunder by the Company relating to any action
or inaction by the Company in

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connection with such registration, and the Company will reimburse each Holder for any
reasonable legal or any other expenses reasonably incurred by it in connection with investigating
or defending any such loss, claim, liability, action or proceedings; provided,
however, that the Company shall not be liable in any such case to the extent that any such
loss, claim, damage, liability (or action or proceeding in respect thereof) or expense arises out
of or is based upon an untrue statement or alleged statement or omission or alleged omission made
in such registration statement, any such preliminary prospectus, final prospectus, summary
prospectus, amendment or supplement in reliance upon and in conformity with written information
furnished to the Company by any Holder specifically stating that it is for use in the preparation
thereof; and provided, further, that the Company shall not be liable to the Holders
or any other Person who Controls such Holder in any such case to the extent that any such loss,
claim, damage, liability (or action or proceeding in respect thereof) or expense arises out of such
Person’s failure to send or give a copy of the final prospectus or supplement to the Persons
asserting an untrue statement or alleged untrue statement or omission or alleged omission at or
prior to the written confirmation of the sale of Registrable Securities to such Person if such
statement or omission was corrected in such final prospectus or supplement. Such indemnity shall
remain in full force and effect regardless of any investigation made by or on behalf of the Holders
or any such Controlling Person and shall survive the transfer of such securities by the Holders.

          b. Indemnification by the Holders. Each Holder agrees to indemnify and hold harmless
(in the same manner and to the same extent as set forth in Section 5(a)) the Company, each
member of the Board, each officer, personnel, agent and investment adviser of the Company and each
other Person, if any, who Controls any of the foregoing, with respect to any untrue statement or
alleged untrue statement of a material fact in or omission or alleged omission to state a material
fact from such registration statement, any preliminary prospectus, final prospectus or summary
prospectus contained therein, or any amendment or supplement thereto, if such untrue statement or
alleged untrue statement or omission or alleged omission was made in reliance upon and in
conformity with written information furnished to the Company by such Holder regarding such Holder
giving such indemnification specifically stating that it is for use in the preparation of such
registration statement, preliminary prospectus, final prospectus, summary prospectus, amendment or
supplement. Such indemnity shall remain in full force and effect regardless of any investigation
made by or on behalf of the Company or any such Board member, officer, personnel, agent, investment
adviser or Controlling Person and shall survive the transfer of such securities by any Holder. The
obligation of a Holder to indemnify will be several and not joint, among the Holders of Registrable
Securities and the liability of each such Holder of Registrable Securities will be in proportion to
and limited in all events to the net amount received by such Holder from the sale of Registrable
Securities pursuant to such registration statement.

          c. Notices of Claims, etc. Promptly after receipt by an indemnified party of notice
of the commencement of any action or proceeding involving a claim referred to in the preceding
paragraphs of this Section 5, such indemnified party will, if a claim in respect thereof is
to be made against an indemnifying party, give written notice to the latter of the commencement of
such action; provided, however, that the failure of any indemnified party to give
notice as provided herein shall not relieve the indemnifying party of its obligations under the
preceding paragraphs of this Section 5, except to the extent that the indemnifying party is
actually prejudiced by such failure to give notice. In case any such action is brought against an
indemnified party, unless in such indemnified party’s reasonable judgment a conflict of interest
between such indemnified and indemnifying parties may exist in respect of such claim, the
indemnifying party shall be entitled to assume the defense thereof, for itself, if applicable,
together with any other indemnified party similarly notified, and after notice from the
indemnifying party to such indemnified party of its election so to assume the defense thereof, the
indemnifying party shall not be liable to the indemnified party for any legal or other expenses
subsequently incurred by the latter in connection with the defense thereof.

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          d. Indemnification Payments. To the extent that the indemnifying party does not
assume the defense of an action brought against the indemnified party as provided in Section
5(c), the indemnified party (or parties if there is more than one) shall be entitled to the
reasonable legal expenses of common counsel for the indemnified party (or parties). In such event,
however, the indemnifying party will not be liable for any settlement effected without the written
consent of such indemnifying party, which consent shall not be unreasonably withheld. The
indemnification required by this Section 5 shall be made by periodic payments of the amount
thereof during the course of an investigation or defense, as and when bills are received or
expense, loss, damage or liability is incurred. The indemnifying party shall not settle any claim
without the consent of the indemnified party unless such settlement involves a complete release of
such indemnified party without any admission of liability by the indemnified party.

          e. Contribution. If, for any reason, the foregoing indemnity is unavailable, or is
insufficient to hold harmless an indemnified party, then the indemnifying party shall contribute to
the amount paid or payable by the indemnified party as a result of the expense, loss, damage or
liability, (i) in such proportion as is appropriate to reflect the relative fault of the
indemnifying party on the one hand and the indemnified party on the other (determined by reference
to, among other things, whether the untrue or alleged untrue statement of a material fact or
omission relates to information supplied by the indemnifying party or the indemnified party and the
parties’ relative intent, knowledge, access to information and opportunity to correct or prevent
such untrue statement or omission) or (ii) if the allocation provided by subclause (i) above is not
permitted by applicable law or provides a lesser sum to the indemnified party than the amount
hereinafter calculated, in the proportion as is appropriate to reflect not only the relative fault
of the indemnifying party and the indemnified party, but also the relative benefits received by the
indemnifying party on the one hand and the indemnified party on the other, as well as any other
relevant equitable considerations. No indemnified party guilty of fraudulent misrepresentation
(within the meaning of Section 11(f) of the Securities Act) shall be entitled to contribution from
any indemnifying party who was not guilty of such fraudulent misrepresentation, and the liability
for contribution of each Holder of Registrable Securities will be in proportion to and limited in
all events to the net amount received by such Holder from the sale of Registrable Securities
pursuant to such registration statement.

          f. Market Stand-Off Agreement. Each Holder hereby agrees that it shall not, to the
extent requested by the Company or an underwriter of securities of the Company, directly or
indirectly sell, offer, pledge, contract to sell, sell any option or contract to purchase, purchase
any option or contract to sell (including without limitation any short sale), grant any option,
right or warrant for the sale of or otherwise transfer or dispose of any Registrable Securities
(other than to donees or partners of the Holder who agree to be similarly bound) within seven days
prior to and for up to 60 days following the effective date of a registration statement of the
Company filed under the Securities Act or the date of an underwriting agreement with respect to an
underwritten public offering of the Company’s securities (the “Stand-Off Period”).

     In order to enforce the foregoing covenant, the Company shall have the right to place
restrictive legends on the certificates representing the Registrable Securities subject to this
Section 6 and to impose stop transfer instructions with respect to the Registrable Securities and
such other Common Stock of each Holder (and the Common Stock or securities of every other person
subject to the foregoing restriction) until the end of such period.

     Section 6. Covenants Relating To Rule 144. At such times as the Company becomes
obligated to file reports in compliance with either Section 13 or 15(d) of the Exchange Act, the
Company covenants that it will file any reports required to be filed by it under the Securities Act
and the Exchange Act and that it will take such further action as any Holder may reasonably
request, all to the extent required from time to time to enable Holders to sell Registrable
Securities without registration under the Securities Act

9

 

within the limitation of the exemptions provided by (a) Rule 144 under the
Securities Act, as such rule may be amended from time to time or (b) any similar rule or regulation
hereafter adopted by the Commission. Upon the request of any Holder, the Company will deliver to
such Holder a written statement as to whether it has complied with such requirements.

     Section 7. Miscellaneous.

          a. Termination; Survival. The rights of each Holder under this Agreement shall
terminate upon the date that all of the Registrable Securities held by such Holder may be sold
during any three-month period in a single transaction or series of transactions without volume
limitations under Rule 144 (or any successor provision) under the Securities Act. Notwithstanding
the foregoing, the obligations of the parties under Section 5 and paragraphs (d), (e) and (g) of
this Section 7 shall survive the termination of this Agreement.

          b. Expenses. All Registration Expenses incurred in connection with any Shelf
Registration under Section 2 shall be borne by the Company, whether or not any registration
statement related thereto becomes effective.

          c. Counterparts. This Agreement may be executed in one or more counterparts, all of
which shall be considered one and the same agreement, and shall become effective when one or more
such counterparts have been signed by each of the parties and delivered to each of the other
parties.

          d. Applicable Law; Jurisdiction. This Agreement shall be governed by and construed in
accordance with the laws of the State of New York without regard to the choice of law provisions
thereof. The parties consent to the exclusive jurisdiction of the United States District Court for
the Southern District of New York in connection with any civil action concerning any controversy,
dispute or claim arising out of or relating to this Agreement, or any other agreement contemplated
by, or otherwise with respect to, this Agreement or the breach hereof, unless such court would not
have subject matter jurisdiction thereof, in which event the parties consent to the jurisdiction of
the State of New York. The parties hereby waive and agree not to assert in any litigation
concerning this Agreement the doctrine of forum non conveniens.

          e. Waiver Of Jury Trial. THE PARTIES HERETO HEREBY IRREVOCABLY AND UNCONDITIONALLY
WAIVE TRIAL BY JURY IN ANY LEGAL ACTION OR PROCEEDING RELATING TO THIS AGREEMENT AND FOR ANY
COUNTERCLAIM THEREIN.

          f. Prior Agreement; Construction; Entire Agreement. This Agreement, including the
exhibits and other documents referred to herein (which form a part hereof), constitutes the entire
agreement of the parties with respect to the subject matter hereof, and supersedes all prior
agreements and understandings between the parties, and all such prior agreements and understandings
are merged herein and shall not survive the execution and delivery hereof.

          g. Notices. All notices or other communications required or permitted to be given
hereunder shall be in writing and shall be delivered by hand or sent, postage prepaid, by
registered, certified or express mail or reputable overnight courier service or be telecopier and
shall be deemed given when so delivered by hand or, if mailed, three days after mailing (one
Business Day in the case of express mail or overnight courier service), addressed as follows:

	 	 	 
	If to the Holder:

	 	To the address indicated for such
Holder in Schedule 1
hereto.

10

 

	 	 	 
	If to the Company:

	 	MFResidential Investments, Inc.
	 

	 	350 Park Avenue, 21st Floor
	 

	 	New York, NY 10022
	 

	 	Attention: Timothy W. Korth
	 

	 	Tel: 212-207-6400
	 

	 	Fax: 212-207-6420
	 
	 	 
	 

	 	with a copy to:
	 
	 	 
	 

	 	Clifford Chance US LLP
	 

	 	31 West 52nd Street
	 

	 	New York, New York 10019
	 

	 	Attention: Jay L. Bernstein
	 

	 	Facsimile: 212-878-8375

          h. Successors and Assigns. This Agreement shall inure to the benefit of and be
binding upon the successors and permitted assigns of each of the parties and shall inure to the
benefit of each Holder. The Company may assign its rights or obligations hereunder to any
successor to the Company’s business or with the prior written consent of Holders of a majority of
the then outstanding Registrable Securities. Notwithstanding the foregoing, no assignee of the
Company shall have any of the rights granted under this Agreement until such assignee shall
acknowledge its rights and obligations hereunder by a signed written agreement pursuant to which
such assignee accepts such rights and obligations.

          i. Headings. Headings are included solely for convenience of reference and if there
is any conflict between headings and the text of this Agreement, the text shall control.

          j. Amendments And Waivers. The provisions of this Agreement may be amended or waived
at any time only by the written agreement of the Company and the Holders of a majority of the
Registrable Securities. Any waiver, permit, consent or approval of any kind or character on the
part of any such Holders of any provision or condition of this Agreement must be made in writing
and shall be effective only to the extent specifically set forth in writing. Any amendment or
waiver effected in accordance with this paragraph shall be binding upon each Holder of Registrable
Securities and the Company.

          k. Interpretation; Absence Of Presumption. For the purposes hereof, (i) words in the
singular shall be held to include the plural and vice versa and words of one gender shall be held
to include the other gender as the context requires, (ii) the terms “hereof,” “herein,” and
“herewith” and words of similar import shall, unless otherwise stated, be construed to refer to
this Agreement as a whole and not to any particular provision of this Agreement, and Section,
paragraph or other references are to the Sections, paragraphs, or other references to this
Agreement unless otherwise specified, (iii) the word “including” and words of similar import when
used in this Agreement shall mean “including, without limitation,” unless the context otherwise
requires or unless otherwise specified, (iv) the word “or” shall not be exclusive and (v)
provisions shall apply, when appropriate, to successive events and transactions.

          This Agreement shall be construed without regard to any presumption or rule requiring
construction or interpretation against the party drafting or causing any instruments to be drafted.

          l. Severability. If any provision of this Agreement shall be or shall be held or
deemed by a final order by a competent authority to be invalid, inoperative or unenforceable, such
circumstance shall not have the effect of rendering any other provision or provisions herein
contained invalid,

11

 

inoperative or unenforceable, but this Agreement shall be construed as if such invalid,
inoperative or unenforceable provision had never been contained herein so as to give full force and
effect to the remaining such terms and provisions.

          m. Specific Performance; Other Rights. The parties recognize that various other
rights rendered under this Agreement are unique and, accordingly, the parties shall, in addition to
such other remedies as may be available to them at law or in equity, have the right to enforce the
rights under this Agreement by actions for injunctive relief and specific performance.

          n. Further Assurances. In connection with this Agreement, as well as all transactions
and covenants contemplated by this Agreement, each party hereto agrees to execute and deliver or
cause to be executed and delivered such additional documents and instruments and to perform or
cause to be performed such additional acts as may be necessary or appropriate to effectuate, carry
out and perform all of the terms, provisions and conditions of this Agreement and all such
transactions and covenants contemplated by this Agreement.

          o. No Waiver. The waiver of any breach of any term or condition of this Agreement
shall not operate as a waiver of any other breach of such term or condition or of any other term or
condition, nor shall any failure to enforce any provision hereof operate as a waiver of such
provision or of any other provision hereof.

[SIGNATURE PAGE FOLLOWS]

12

 

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

	 	 	 	 	 	 	 
	 	 	MFRESIDENTIAL INVESTMENTS, INC.,	 	 
	 	 	a Maryland corporation	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	Name:
	 	 

	 	 
	 

	 	Title:	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	HOLDERS:	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	MFA MORTGAGE INVESTMENTS, INC.,	 	 
	 	 	a Maryland corporation	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	Name:
	 	 

	 	 
	 

	 	Title:	 	 	 	 

13

 

Schedule 1

THE HOLDERS

	(a)	 	List of holders of Common Stock:

	 	 	 	 	 
	 	 	Number of	 	 
	Name of the Holder	 	Common Stock Held	 	Address of the Holder
	MFA Mortgage Investments, Inc.

	 	 
	 	350 Park Avenue, 21st Floor

New York, New York 10022

	(b)	 	List of holders of the OP Units (exchangeable into the Common Stock on a one-for-one
basis):

	 	 	 	 	 
	 	 	Number of	 	 
	Name of the Holder	 	OP Units Held	 	Address of the Holder
	MFA Mortgage Investments, Inc.

	 	 
	 	350 Park Avenue, 21st Floor

New York, New York 10022EX-4.1

Exhibit
4.1

 

AMERICAN INTERNATIONAL GROUP, INC.

 

Sixth Supplemental Indenture

Dated as of May 16, 2008

 

(Supplemental to the Junior Subordinated Debt Indenture Dated as of March 13, 2007)

 

THE BANK OF NEW YORK,

as Trustee

 

 

 

     SIXTH SUPPLEMENTAL INDENTURE, dated as of May 16, 2008, between American International Group,
Inc., a corporation duly organized and existing under the laws of the State of Delaware (herein
called the “Company”), and The Bank of New York, a New York banking corporation, as Trustee
(herein called “Trustee”);

RECITALS:

     WHEREAS, the Company has heretofore executed and delivered to the Trustee a Junior
Subordinated Debt Indenture, dated as of March 13, 2007 (the “Indenture”), providing for
the issuance from time to time of the Company’s unsecured debentures, notes or other evidences of
indebtedness (herein and therein called the “Securities”), to be issued in one or more
series as provided in the Indenture;

     WHEREAS, Section 901 of the Indenture permits the Company and the Trustee to enter into an
indenture supplemental to the Indenture to establish the form and terms of a series of Securities;

     WHEREAS, Section 201 of the Indenture permits the form of Securities of a series to be
established in an indenture supplemental to the Indenture;

     WHEREAS, Section 301 of the Indenture permits certain terms of a series of Securities to be
established pursuant to an indenture supplemental to the Indenture;

     WHEREAS, pursuant to Sections 201 and 301 of the Indenture, the Company desires to provide for
the establishment of a new series of Securities under the Indenture, the form and substance of such
Securities and the terms, provisions and conditions thereof to be set forth as provided in the
Indenture and this Sixth Supplemental Indenture;

     WHEREAS, all things necessary to make this Sixth Supplemental Indenture a valid agreement of
the Company, in accordance with its terms, have been done;

     WHEREAS, the Corporate Units will include as a component the Debentures (as hereinafter
defined);

     WHEREAS, the Debentures are entitled to the benefit of a Remarketing Agreement, dated as of
the date hereof, among the Company, the Purchase Contract Agent (as hereinafter defined) and
Citigroup Global Markets Inc. and J.P. Morgan Securities Inc., as Remarketing Agents;

     NOW, THEREFORE, THIS SIXTH SUPPLEMENTAL INDENTURE WITNESSETH:

     For and in consideration of the premises and the purchase of the Securities of the series
established by this Sixth Supplemental Indenture by the Holders thereof, it is mutually agreed, for
the equal and proportionate benefit of all such Holders, as follows:

Sixth Supplemental Indenture

 

 

ARTICLE ONE

DEFINITIONS AND OTHER PROVISIONS

OF GENERAL APPLICATION

Section 1.1 Relation to Indenture

     This Sixth Supplemental Indenture constitutes a part of the Indenture (the provisions of
which, as modified by this Sixth Supplemental Indenture, shall apply to the Debentures) in respect
of the Debentures but shall not modify, amend or otherwise affect the Indenture insofar as it
relates to any other series of Securities or modify, amend or otherwise affect in any manner the
terms and conditions of the Securities of any other series.

Section 1.2 Definitions

     For all purposes of this Sixth Supplemental Indenture, the capitalized terms used herein
(i) which are defined in this Section 1.2 have the respective meanings assigned hereto in this
Section 1.2 and (ii) which are defined in the Indenture (and which are not defined in this
Section 1.2) have the respective meanings assigned thereto in the Indenture. For all purposes of
this Sixth Supplemental Indenture:

     1.2.1 Unless the context otherwise requires, any reference to an Article, Section or Annex
refers to an Article or Section of, or Annex to, as the case may be, this Sixth Supplemental
Indenture;

     1.2.2 The words “herein”, “hereof” and “hereunder” and words of similar import refer to this
Sixth Supplemental Indenture as a whole and not to any particular Article, Section or other
subdivision;

     1.2.3 The following terms have the meanings given to them in the Pledge Agreement (where
applicable, with respect to the Debentures): Collateral Account; Collateral Agent; Custodial
Agent, and Proceeds;

     1.2.4 The following terms have the meanings given to them in the Purchase Contract Agreement
(where applicable, with respect to the Debentures): Contract Adjustment Payments; Corporate Units;
Equity Units; First Stock Purchase Date; Purchase Contract Agent; Remarketing Period; Remarketing
Settlement Date; Separate Debentures; Separate Debentures Purchase Price; Stock Purchase Contract;
Stock Purchase Date; Treasury Portfolio Purchase Price, and Treasury Units.

Sixth Supplemental Indenture

-2-

 

     1.2.5 The terms defined in this Section 1.2.5 have the meanings assigned to them in this
Section and include the plural as well as the singular:

     “Additional Debentures” means any debt securities issued pursuant to Section 5.11(c)
of the Purchase Contract Agreement in respect of deferred Contract Adjustment Payments or pursuant
to Section 2.1(g)(ii), and shall (a) bear interest at an annual rate equal to the then market rate
of interest for similar instruments (not to exceed 10%), as determined by a nationally recognized
investment banking firm selected by the Company, (b) rank pari passu with the Debentures, (c)
provide for optional deferral on the same basis as the Debentures (d) be redeemable at the
Company’s option at any time at their principal amount, plus accrued and unpaid interest thereon
through their date of redemption and (e) be issued under the Indenture.

     “Adjusted Treasury Rate” means, with respect to any Redemption Date, the rate per
annum equal to the yield to maturity of the Comparable Treasury Issue, assuming a price for the
Comparable Treasury Issue (expressed as a percentage of its principal amount) equal to the
Comparable Treasury Price for such Redemption Date.

     “Assurance Agreement” means the agreement of the Company, dated as of June 27, 2005,
in favor of eligible employees and relating to specified obligations of Starr International
Company, Inc. (as such agreement may be amended, supplemented, extended, modified or replaced from
time to time).

     “Base Rate” has the meaning set forth in Section 2.2(a)(iii).

     “Business Day” is any day, other than a Saturday, Sunday or other day on which banking
institutions in The City of New York are authorized or required by law or executive order to remain
closed.

     “Calculation Agent” means AIG Financial Products Corp., or any other Person appointed
by the Company, acting as calculation agent for the Debentures. Any successor or substitute
Calculation Agent may be an Affiliate of the Company.

     “Capital Stock” of any Person means any and all shares, interests, rights to purchase,
warrants, options, participations or other equivalents of or interests in (however designated)
shares issued by that Person.

     “Comparable Treasury Issue” means the U.S. Treasury security selected by an
independent investment bank selected by the Calculation Agent as having a maturity comparable to
the term remaining from the Redemption Date to the Final Maturity Date that would be utilized, at
the time of selection and in accordance with customary financial practice, in pricing new issues of
corporate debt securities of comparable maturity.

     “Comparable Treasury Price” means, with respect to any Redemption Date, the average of
the Reference Treasury Dealer Quotations for such Redemption Date.

Sixth Supplemental Indenture

-3-

 

     “Coupon Rate” means the interest rate payable on the Debentures as set forth herein.

     “Debentures” has the meaning set forth in Section 2.1(a).

     “Deferred Interest” has the meaning set forth in Section 2.1(g).

     “Deferral Period” means each period beginning on an Interest Payment Date with respect
to which the Company elects pursuant to Section 2.1(g) to defer all or part of any interest payment
due on such Interest Payment Date and ending on the earlier of (i) the First Stock Purchase Date
and (ii) the next Interest Payment Date on which the Company has paid all accrued and previously
unpaid interest on the Debentures.

     “Employee Benefit Plan” means any written purchase, savings, option, bonus,
appreciation, profit sharing, thrift, incentive, pension or similar plan or arrangement or any
written compensatory contract or arrangement.

     “Events of Default” has the meaning set forth in Section 2.1(h).

     “Failed Remarketing” has the meaning set forth in Section 2.1(p)(iii).

     “Final Maturity Date” means the earlier of February 15, 2041 and the maturity date
specified by the Company pursuant to Section 2.2(a)(i).

     “Indebtedness” means all indebtedness and obligations (other than the Debentures) of,
or Guaranteed or assumed by, the Company that (i) are for borrowed money or (ii) are evidenced by
bonds, debentures, notes or other similar instruments.

     “Initial Interest Rate” has the meaning set forth in Section 2.1(e).

     “Interest Payment Date” has the meaning set forth in Section 2.1(e).

     “Interest Period” means the period from and including any Interest Payment Date (or,
in the case of the first Interest Payment Date, May 16, 2008) to but excluding the next succeeding
Interest Payment Date.

     “Make-Whole Redemption Price” means the sum, as determined by the Calculation Agent,
of the present values, determined in accordance with customary financial practice, of the remaining
scheduled payments of principal discounted from the Final Maturity Date and interest thereon that
would have been payable to and including the Final Maturity Date (not including any portion of such
payments of interest accrued to the Redemption Date) discounted from the relevant Interest Payment
Date to the Redemption Date on a quarterly basis (assuming a 360-day year consisting of twelve
30-day months) at the Adjusted Treasury Rate plus 0.25%.

Sixth Supplemental Indenture

-4-

 

     “Other Debentures” means each of the series of Securities issued under the Seventh
Supplemental Indenture to the Indenture and the Eighth Supplemental Indenture to the Indenture,
each dated as of the date hereof, and each between the Company and the Trustee.

     “pari passu”, as applied to the ranking of any obligation of a Person in relation to
any other obligation of such Person, means in any bankruptcy, insolvency or receivership proceeding
that each such obligation either (i) is not subordinated or junior in right of payment to any other
obligation or (ii) is subordinate or junior in right of payment to the same obligations as is the
other, and is so subordinate or junior to the same extent, and is not subordinate or junior in
right of payment to each other or to any obligation as to which the other is not so subordinate or
junior.

     “Pledge Agreement” means the Pledge Agreement, dated as of May 16, 2008, among the
Company, Wilmington Trust Company, as Collateral Agent, Custodial Agent and Securities
Intermediary, and The Bank of New York, as Purchase Contract Agent, as it may be amended from time
to time.

     “Purchase Contract Agreement” means the Purchase Contract Agreement, dated as of
May 16, 2008, between the Company and The Bank of New York, as Purchase Contract Agent, as it may
be amended from time to time.

     “Put Notice” has the meaning set forth in Section 2.1(n).

     “Put Right” has the meaning set forth in Section 2.1(n).

     “Reference Treasury Dealer” means each of Citigroup Global Markets Inc. and J.P.
Morgan Securities Inc., or their respective successors; provided, however, that if any of the
foregoing shall cease to be a primary U.S. government securities dealer in the United States (a
“Primary Treasury Dealer”), the Company shall substitute therefor another Primary Treasury
Dealer; and any other Primary Treasury Dealer selected by the Calculation Agent after consultation
with the Company.

     “Reference Treasury Dealer Quotations” means, with respect to each Reference Treasury
Dealer and any Redemption Date, the average, as determined by the Calculation Agent, of the bid and
ask prices for the Comparable Treasury Issue (expressed in each case as a percentage of its
principal amount) quoted in writing to the Calculation Agent by that Reference Treasury Dealer at
5:00 p.m. on the third Business Day preceding such Redemption Date.

     “Regular Record Date” for the payment of any current interest payable on any Interest
Payment Date, the date specified in Section 2.1(f) and for the payment of Deferred Interest, the
date specified in Section 2.1(g)(ii).

Sixth Supplemental Indenture

-5-

 

     “Remarketing” means a remarketing of Debentures pursuant to Section 2.1(p) and the
Remarketing Agreement.

     “Remarketing Agents” means the Remarketing Agents and any successor or replacement
remarketing agents appointed by the Company pursuant to Section 2.1(p).

     “Remarketing Agents’ Fee” means 0.25% of the sum of the Treasury Portfolio Purchase
Price and the Separate Debentures Purchase Price.

     “Remarketing Agreement” means the remarketing agreement entered into among the
Company, the Purchase Contract Agent and the Remarketing Agents pursuant to Section 2.1(p).

     “Remarketing Date” means any day during a Remarketing Period on which the Remarketing
Agent finds buyers for all of the Debentures offered in the Remarketing by 4:00 p.m., New York City
time.

     “Remarketing Period Start Date” means the first day of the Remarketing Period.

     “Reset Rate” has the meaning set forth in Section 2.1(p).

     “Reset Spread” has the meaning set forth in Section 2.1(p).

     “Successful” means, as to a Remarketing, that the Remarketing is conducted in
accordance with Section 2.1(p) and the Remarketing Agent finds buyers for all of the Debentures
offered in the Remarketing no later than 4:00 p.m., New York City time, on the last day of the
Remarketing Period.

ARTICLE TWO

GENERAL TERMS AND CONDITIONS OF THE DEBENTURES

Section 2.1 Terms of Debentures

     Pursuant to Sections 201 and 301 of the Indenture, there is hereby established a series of
Securities, the terms of which shall be as follows:

     (a) Designation. The Securities of this series shall be known and designated
as the “5.67% Series B-1 Junior Subordinated Debentures” of the Company
(the “Debentures”). The CUSIP number of the Debentures is 026874 BN6.

     (b) Aggregate Principal Amount. The maximum aggregate principal amount of the
Debentures that may be authenticated and delivered under the Indenture and this Sixth
Supplemental Indenture is $1,960,000,000 (except for

Sixth Supplemental Indenture

-6-

 

Debentures authenticated and delivered upon registration of transfer of, or exchange
for, or in lieu of, other Debentures pursuant to Section 304, 305, 306, 906 or 1107 of the
Indenture or 2.1(n) or 2.1(p) of this Sixth Supplemental Indenture).

     (c) Form and Denominations. (i) The Debentures will initially be issued in
the form of one or more Securities substantially in the form of Annex A, with such
modifications thereto as may be approved by the officer executing the same. The Debentures
will be denominated in U.S. dollars and payments of principal and interest will be made in
U.S. dollars. Except as provided for in Section 2.1(c)(ii), the Debentures will be issued
only in fully registered certificated form without coupons, and the authorized
denominations of the Debentures shall be $1,000 and integral multiples of $1,000 in excess
thereof. Debentures that are components of Corporate Units shall be registered in the name
of The Bank of New York, as Purchase Contract Agent. Principal and interest on the
Debentures will be payable, the transfer of such Debentures will be registrable, and such
Debentures will be exchangeable for Debentures of a like aggregate principal amount bearing
identical terms and provisions, at the office or agency of the Company maintained for such
purpose in the Borough of Manhattan, New York City, which shall initially be the Corporate
Trust Office of the Trustee, provided, however, that payment of interest may be made, at
the option of the Company, by check mailed to the Holder at such address as shall appear in
the Security Register or by wire transfer to an account appropriately designated by the
Holder entitled to payment. No service charge shall be made for any registration of
transfer or exchange of any Debentures, but the Company may require payment from the Holder
of a sum sufficient to cover any tax or other governmental charge that may be imposed in
connection therewith.

     (i) If any Debenture is no longer a component of the Corporate Unit and released from
the Collateral Account, the Company, at its election, may issue one or more certificates,
in form of a Global Security to represent such Debenture and any other Debentures that
cease to be a component of Corporate Units and are released from the Collateral Account.
If issued as one or more Global Securities, the Depositary shall be The Depository Trust
Company or such other depositary as any officer of the Company may from time to time
designate. Upon the creation of Treasury Units or the recreation of Corporate Units, an
appropriate annotation shall be made on the Schedule of Increases and Decreases on the
Global Securities held by the Depositary and on the Schedule of Increases and Decreases on
the Debenture held by the Collateral Agent. The Global Securities will be subject to the
provisions of Section 305 of the Indenture and bear the legend in Section 204 of the
Indenture; provided, however, that notwithstanding clause (2) of Section 305 of the
Indenture, the Global Securities may be exchanged in whole or in part for Debentures
registered in the name of the Purchase Contract Agent upon the recreation of Corporate
Units in accordance

Sixth Supplemental Indenture

-7-

 

with the Purchase Contract Agreement and Pledge Agreement. Payments with respect to
Global Securities will be made by wire transfer to the Depositary.

     (d) Maturity. The principal amount of, and all accrued and unpaid interest
on, the outstanding Debentures shall be payable in full on the Final Maturity Date.

     (e) Rate of Interest. The Debentures shall bear interest (i) from and
including May 16, 2008 to but excluding the earlier of their maturity date and the
Remarketing Settlement Date at the rate of 5.67% per annum (the “Initial Interest
Rate”), and (ii) from and including the Remarketing Settlement Date, at the Reset Rate.
Interest on the Debentures shall be payable (i) quarterly in arrears on February 1, May 1,
August 1 and November 1 of each year, beginning on August 1, 2008, (ii) if there is a
Failed Remarketing, on February 15, 2011 for the period from and including February 1, 2011
to but excluding February 15, 2011 and (iii) after a Successful Remarketing, semi-annually
in arrears on February 1 and August 1 at the Reset Rate, accruing from the Remarketing
Settlement Date, unless the Company elects a Reset Rate that is a floating rate pursuant to
Section 2.2(a)(iii) (each such date on which interest is to be paid, an “Interest
Payment Date”). Except as provided in Section 2.1(p), the amount of interest payable
on the Debentures for any period will be computed (i) for any full quarterly or semi-annual
period on the basis of a 360-day year of twelve 30-day months and (ii) for any period
shorter than a full quarterly or semi-annual period, on the basis of a 30-day month and,
for any period less than a month, on the basis of the actual number of days elapsed per
30-day month. Except as provided in Section 2.1(p), in the event any Interest Payment Date
falls on a day that is not a Business Day, the interest payment due on that date will be
postponed to the next day that is a Business Day with the same force and effect as if made
on such originally scheduled date and no interest shall accrue as a result of such
postponement.

     (f) To Whom Interest is Payable. Except as provided in Section 2.1(g)(ii) and
as otherwise determined by the Company from time to time, interest (other than Deferred
Interest which shall be payable to the Persons specified pursuant to Section 2.1(g)(ii))
shall be payable to the Person in whose name the Debentures are registered at the close of
business on the 15th day of the month prior to the month in which the Interest
Payment Date falls, whether or not a Business Day, or on February 1, 2011 in the case of
the Interest Payment Date, if any, that falls on February 15, 2011.

     (g) Option to Defer Interest Payments. (i) The Company shall have the right,
at any time and from time to time prior to the First Stock Purchase Date, to defer the
payment of interest on the Debentures for one or more consecutive Interest Periods;
provided that no Deferral Period shall extend beyond the First Stock Purchase Date (such
interest referred to as “Deferred Interest”). Deferred Interest will, subject to
applicable law, accrue interest at the Initial Interest Rate

Sixth Supplemental Indenture

-8-

 

compounded on each Interest Payment Date. The Company agrees that (A) until the First
Stock Purchase Date, (x) if an Event of Default has occurred and is continuing, (y) the
Company has given notice of its election to defer interest payments but the Deferral Period
has not yet commenced or (z) a Deferral Period is continuing, (B) the Company has given
notice of its election to defer Contract Adjustment Payments but the related deferral
period has not yet commenced or a deferral period is continuing with respect to such
Contract Adjustment Payments, or (C) Additional Debentures are outstanding, the Company
shall not, and shall not permit any Subsidiary, subject to the exceptions specified in
clause (v) of this Section 2.1(g), to: (a) declare or pay any dividends or distributions
on, or redeem, purchase, acquire or make a liquidation payment with respect to, any Capital
Stock of the Company, (b) make any payment of principal of, or interest or premium, if any,
on, or repay, purchase or redeem any debt securities of the Company that rank pari passu
with, or junior to, the Debentures (including the Other Debentures) or (c) make any
payments with respect to any Guarantee by the Company of securities of any Subsidiary if
such Guarantee ranks pari passu with, or junior to, the Debentures.

     (ii) The Company may pay Deferred Interest pursuant to this Section 2.1(g) to the
Holder at any time either in the form of cash or in the form of an Additional Debentures
having a principal amount equal to the aggregate amount of accrued but unpaid Deferred
Interest on the date of issuance and maturing on the later of August 1, 2014 and the date
five years after the date of commencement of the Deferral Period; provided, however, that
the Company must pay any accrued but unpaid Deferred Interest to the Holder either in the
form of cash or in the form of Additional Debentures on the First Stock Purchase Date,
whether or not such Holder participates in the Remarketing. Deferred Interest paid on any
Interest Payment Date shall be payable to the Person in whose name the Debentures are
registered at the close of business on the Record Date next preceding such Interest Payment
Date, provided that the Company shall establish a Special Record Date for any Deferred
Interest to be paid on a date other than an Interest Payment Date and Holders on that
Special Record Date shall be entitled to payment of the Deferred Interest.

     (iii) Upon termination of any Deferral Period and upon the payment of all Deferred
Interest (together with any compounded interest thereon, if any, to the extent permitted by
applicable law), the Company may elect to begin a new Deferral Period pursuant to clause
(i) of this Section 2.1(g).

     (iv) The Company shall give written notice to the Trustee and the Holders of the
Debentures of its election to begin any Deferral Period on any Interest Payment Date at
least one Business Day prior to the Regular Record Date for that Interest Payment Date.
Notwithstanding the previous sentence, the Company’s failure to pay any interest due within
five Business Days after any Interest Payment Date occurring prior to the First Stock
Purchase Date shall

Sixth Supplemental Indenture

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automatically and without any further action by any Person be deemed to commence a
Deferral Period.

     (v) The restrictions in clause (i) of this Section 2.1(g) do not apply to (a)
purchases, redemptions or other acquisitions of shares of the Company’s Capital Stock in
connection with (1) any Employee Benefit Plan or the Assurance Agreement or (2) a dividend
reinvestment, stock purchase plan or other similar plan, (b) any exchange or conversion of
any class or series of the Company’s Capital Stock (or the Capital Stock of any Subsidiary)
for any class or series of the Company’s Capital Stock or of any class or series of
Indebtedness of the Company for any class or series of the Company’s Capital Stock, (c) the
purchase of fractional interests in shares of the Capital Stock of the Company in
accordance with the conversion or exchange provisions of the Company’s Capital Stock or the
security or instrument being converted or exchanged, (d) any declaration of a dividend in
connection with any stockholders’ rights plan, or the issuance of rights, equity securities
or other property under any stockholders’ rights plan, or the redemption or repurchase of
rights in accordance with any stockholders’ rights plan, (e) any dividend in the form of
equity securities, warrants, options or other rights where the dividend stock or the stock
issuable upon exercise of the warrants, options or other rights is the same stock as that
on which the dividend is being paid or ranks pari passu with or junior to such equity
securities, (f) any payment during a Deferral Period of current or deferred interest in
respect of any debt securities of the Company that rank pari passu with the Debentures that
is made pro rata to the amounts due on pari passu securities and the Debentures, (g) any
payments of deferred interest or principal on such pari passu securities that, if not made,
would cause the Company to breach the terms of the instrument governing such pari passu
securities, (h) the repurchase of any debt securities of the Company that rank pari passu
with the Debentures in exchange for Capital Stock in connection with a failed remarketing
or similar event, any payment of deferred interest on any such debt securities in the form
of additional debentures that will rank pari passu with the Debentures and the repayment of
any such additional debentures at maturity or (i) any repayment or redemption of a security
necessary to avoid a breach of the instrument governing that security.

     (h) Events of Default. After the First Stock Purchase Date, the Debentures
shall be entitled to the benefits of the Events of Default set forth in Section 501 of the
Indenture. Until the First Stock Purchase Date, the following events shall be Events of
Default with respect to the Debentures (whatever the reason for such Event of Default and
whether it shall be occasioned by the provisions of Article Fourteen of the Indenture or 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):

Sixth Supplemental Indenture

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     (1) default in the payment of interest, including compounded interest, in full
in cash or Additional Debentures on any Debenture for a period of 30 days after the
First Stock Purchase Date;

     (2) default in the payment of the principal of any Debenture at the final
stated maturity or upon a call for redemption pursuant to Section 2.1(i); or

     (3) the events set forth in Section 501(5) and (6) of the Indenture.

     (i) Redemption. The Debentures shall be redeemable in accordance with
Article Eleven of the Indenture. Subject to Section 2.2(a)(ii), at any time on or after
February 15, 2013, the Company may redeem, at its option, the Debentures, in whole or in
part, at a price equal to the greater of their principal amount and the Make-Whole
Redemption Price, plus, in either case, accrued and unpaid interest, if any, to the
Redemption Date.

     (j) Sinking Fund. Article Twelve shall not apply to the Debentures.

     (k) Subordination. The Debentures shall at all times prior to the Remarketing
Settlement Date, if any, be subject to Article Fourteen of the Indenture, subject to the
following modifications:

     (i) For purposes of the Debentures, the “or” before clause (iii) of the
definition of Senior Debt in the Indenture is deleted, the following clauses are
added to the definition of Senior Debt in the Indenture after the word “contracts,”
in clause (iii) for purposes of the Debentures:

“, (iv) any subordinated or junior subordinated debt that by its terms is
not expressly pari passu or subordinated to the Debentures, (v) any
Guarantee of any indebtedness, obligation or security issued by any Person
that is an Affiliate of the Company and such Person is viewed by the
Company as a vehicle to finance its operations, and (vi) Indebtedness of
the Company to its Subsidiaries”; and

     (ii) For purposes of the Debentures, the following provision is added to the
end of the definition of Senior Debt in the Indenture after the word “Securities”:
“provided that (a) trade accounts payable and accrued liabilities arising in the
ordinary course of the Company’s business, (b) the Company’s 6.25% Series A-1
Junior Subordinated Debentures, 5.75% Series A-2 Junior Subordinated Debentures,
4.875% Series A-3 Junior Subordinated Debentures, 6.45% Series A-4 Junior
Subordinated Debentures, 7.70% Series A-5 Junior Subordinated Debentures and the

Sixth Supplemental Indenture

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Other Debentures and (c) any other indebtedness, Guarantee or other obligation
that is specifically designated as being subordinate, or not superior, in right of
payment to the Debentures, shall not be considered Senior Debt”.

     (iii) For purposes of the Debentures, the provisions of Section 1404 of the
Indenture shall only apply in the case where (A) there has been an event of default
with respect to Senior Debt within the meaning of clause (i) of the definition of
Senior Debt, (B) the principal amount of such Senior Debt has been accelerated, (C)
the outstanding principal amount of Senior Debt at the time of acceleration is at
least $100,000,000 and (D) the event of default or acceleration has not been cured,
waived, or otherwise ceased to exist. In no other case and to no other Senior Debt
shall Section 1404 apply.

     (iv) The Debentures shall rank pari passu with the Company’s 6.25% Series A-1
Junior Subordinated Debentures, 5.75% Series A-2 Junior Subordinated Debentures,
4.875% Series A-3 Junior Subordinated Debentures, 6.45% Series A-4 Junior
Subordinated Debentures, 7.70% Series A-5 Junior Subordinated Debentures and the
Other Debentures.

     (l) Registrar, Paying Agent, Authenticating Agent and Place of Payment. The
Company hereby appoints The Bank of New York as Security Registrar, Authenticating Agent
and Paying Agent with respect to the Debentures. The Debentures may be surrendered for
registration of transfer and for exchange without service charge, but upon payment of any
taxes on other governmental charges payable in connection with such registration of
transfer or exchange, at the office or agency of the Company maintained for such purpose in
The City of New York, New York and at any other office or agency maintained by the Company
for such purpose. The Place of Payment for the Debentures shall be the Paying Agent’s
office in New York, New York. Principal and interest with respect to the Debentures will
be payable, the transfer of the Debentures will be registrable and Debentures will be
exchangeable for debentures of a like aggregate principal amount in denominations of $1,000
and integral multiples of $1,000, at the office of the Paying Agent.

     (m) Defeasance. After the First Stock Purchase Date, the Debentures will be
subject to Sections 1302 and 1303 of the Indenture unless the Company makes the election
set forth in Section 2.2(a)(iii).

     (n) Redemption at Holders’ Option. If there is a Failed Remarketing, each
Holder of Debentures that are Separate Debentures will have the right to require the
Company to redeem all or a portion of its Separate Debentures, but excluding any Additional
Debentures, on the First Stock Purchase Date (the “Put Right”). Such right will be
exercisable only upon delivery of notice to the Trustee

Sixth Supplemental Indenture

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on or prior to 11:00 a.m., New York City time, on the second Business Day prior to the
First Stock Purchase Date (a “Put Notice”). A Put Notice shall be irrevocable. If
a Put Notice shall have been duly given, the Separate Debentures to which the Put Notice
relates shall become due and payable on the First Stock Purchase Date, and the Company
shall redeem, such Debentures for a Redemption Price per Debenture equal to 100% of their
principal amount. Accrued and unpaid interest on such Debenture to such date of redemption
shall be paid to the Holders of such Debentures on the Record Date therefor. Section 1105
of the Indenture shall apply to any redemption pursuant to this Section 2.1(n), and Section
1107 of the Indenture shall apply to any Separate Debenture redeemed in part.

     (o) Modification. No supplemental indenture shall, without the consent of the
Holder of each Outstanding Debenture, modify or amend Section 2.1(n) or Section 2.1(p) in
any respect materially adverse to the Holder.

     (p) Remarketing and Reset Rate Mechanics.

     (i) Obligation to Conduct Remarketing and Related Requirements.

     (i) The Company and the Purchase Contract Agent shall appoint a nationally
recognized investment banking firm as Remarketing Agent and enter into a
Remarketing Agreement at least 30 days prior to the Remarketing Period Start Date.
The Remarketing Agreement shall include such terms, conditions and other provisions
as the Company, the Purchase Contract Agents and the Remarketing Agent may agree
among themselves but shall in any event include provisions to substantially the
following effect:

     (1) The Remarketing Agents will use their commercially reasonable efforts to
obtain a price for the Debentures to be remarketed in the Remarketing which results
in proceeds, net of the Remarketing Agents’ Fee, equal to at least 100% of the sum
of the Treasury Portfolio Purchase Price and the Separate Debentures Purchase
Price;

     (2) The Remarketing Agent will in consultation with the Company reset the
Coupon Rate on the Debentures (as a rate per annum for payment of interest on each
applicable Interest Payment Date) or establish the Reset Spread in order to give
effect to clause (1) above for Interest Periods or portions thereof commencing on
or after the Remarketing Settlement Date;

     (3) The Remarketing Agents will deduct the Remarketing Agents’ Fee from the
proceeds of the Remarketing and remit any Proceeds remaining after such deduction
to or at the direction of the Collateral

Sixth Supplemental Indenture

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Agent and the Custodial Agent in accordance with the Pledge Agreement; and

     (4) On any day in a Remarketing Period other than the last five Business Days
of such Remarketing Period, the Company may, in its absolute discretion (and
without prior notice being given to Holders of Debentures or of the Equity Units),
postpone the Remarketing until the following Business Day by giving notice of such
postponement to the Remarketing Agents in accordance with the Remarketing
Agreement.

     (ii) The Company and the Purchase Contract Agent shall use their commercially
reasonable efforts to effect Remarketing of the Debentures as described in this
Section 2.1(p). If in the judgment of counsel to the Company or to the Remarketing
Agents it is necessary for a Registration Statement covering the Debentures to have
been filed and have become effective under the Securities Act in order to effect
the Remarketing, then the Company and the Purchase Contract Agent shall use their
commercially reasonable efforts (i) to ensure that a Registration Statement
covering the full principal amount of Debentures to be remarketed shall have become
effective in a form that will enable the Remarketing Agents to rely on it in
connection with the Remarketing or (ii) effect such Remarketing pursuant to Rule
144A under the Securities Act or another available exemption from the registration
requirements under the Securities Act.

     (ii) Reset of Coupon Rate in Connection with Remarketing.

     (i) As part of and in connection with the Remarketing, the Remarketing Agents
shall, as contemplated by Section 2.1(p)(i)(2) and in accordance with the other
provisions of this Section 2.1(p), (A) reset the Coupon Rate to a new rate (the
“Reset Rate”), or (B) if the Company shall have made the election set forth
in Section 2.2(a)(iii), establish the reset spread (the “Reset Spread”),
rounded to the nearest one-thousandth (0.001) of one percent per annum, that will
apply to all Debentures (whether or not the Holders thereof participated in the
Remarketing) if such Remarketing is Successful for each Interest Period or portion
thereof commencing on or after the Remarketing Settlement Date.

     (ii) If the Remarketing has been determined to be Successful in accordance
with Section 2.1(p)(iii)(v), by approximately 4:30 p.m., New York City time, on any
Remarketing Date, the Remarketing Agent shall notify the Company, the Purchase
Contract Agent and the Trustee that the Remarketing was Successful and the Reset
Rate or Reset Spread, as the case may be, determined as part of such Remarketing in
accordance with this Section 2.1(p).

Sixth Supplemental Indenture

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     (iii) If a Remarketing is Successful, then commencing with the related
Remarketing Settlement Date, (A) the Coupon Rate shall be reset to the Reset Rate
or (B) if the Company shall have made the election set forth in Section
2.2(a)(iii), the Debentures shall bear interest at the Base Rate plus the Reset
Spread, determined in accordance with this Section 2.1(p) pursuant to such
Remarketing.

     (iv) In the event of a Failed Remarketing:

     (1) no Debentures will be sold in such Remarketing;

     (2) the Coupon Rate and the Interest Payment Dates will remain unchanged;

     (3) the Collateral Agent, for the benefit of the Company, will, at the written
instruction of the Company, deliver or dispose of the Debentures that are included
in Corporate Units in accordance with the Company’s written instructions to satisfy
in full, from any such disposition or retention, such Holders’ obligations to pay
the purchase price for the shares of Common Stock to be issued on the First Stock
Purchase Date under the Stock Purchase Contracts underlying such Corporate Units;
and

     (4) in the case of Debentures that are Separate Debentures the Holders of
which elected to participate in the Remarketing, such Debentures will be returned
to the related Holders in accordance with the Pledge Agreement and the Holders will
be entitled to exercise the Put Right.

     (iii) Remarketing Procedures.

     (i) The Company will (A) (x) give, or cause the Trustee to give on its behalf,
the Holders of the Separate Debentures and (y) cause the Purchase Contract Agent to
give the record holders of Equity Units notice of the Remarketing at least seven
Business Days prior to the Remarketing Period Start Date, and (B) request, not
later than seven nor earlier than 15 calendar days prior to the Remarketing Period
Start Date (or if clause (2) below applies, not later than 15 or earlier than 21
calendar days prior to the Remarketing Period Start Date), that the Depositary
notify its participants holding Debentures, Corporate Units or Treasury Units, of
the Remarketing. Such notices will set forth:

     (1) the Interest Payment Dates and Regular Record Dates that will apply after
the Remarketing Settlement Date;

Sixth Supplemental Indenture

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     (2) the modifications to the terms of the Debentures, if any, effected
pursuant to Section 2.2(a);

     (3) the procedures a beneficial owner must follow if it holds Debentures that
are Separate Debentures to elect to participate in the Remarketing; and

     (4) the procedures a beneficial owner must follow to exercise its Put Right in
the event such Remarketing is a Failed Remarketing if such beneficial owner holds
Debentures that are Separate Debentures.

     (ii) On the Remarketing Period Start Date, all outstanding Debentures included
in Corporate Units will be tendered or be deemed tendered to the Remarketing Agent
for Remarketing. Each Holder of Debentures included in Corporate Units, by
purchasing such Debentures agrees to have such Debentures remarketed on any
Remarketing Date and authorizes the Remarketing Agent to take any and all action on
its behalf necessary to effect the Remarketing.

     (iii) Each Holder of Debentures that are Separate Debentures may elect to have
such Holder’s Debentures remarketed in the Remarketing in accordance with
Section 5.02 of the Purchase Contract Agreement.

     (iv) If the Remarketing on any Remarketing Date is Successful, then on the
Remarketing Settlement Date the Collateral Agent shall deliver to the Remarketing
Agent the Debentures included in the Corporate Units and the Custodial Agent shall
deliver to the Remarketing Agent the Debentures the Holders of which have made the
election referred to in clause (iii) above, and the Remarketing Agent shall deduct
the Remarketing Agent’s Fee to which it is entitled as provided in
Section 2.1(p)(i) from the proceeds of such Remarketing and remit the remaining
proceeds in accordance with Section 2.1(p)(i)(3) for application as provided
therein.

     (v) If by 4:00 p.m., New York City time, on any Remarketing Date the
Remarketing Agent has found buyers for all of the Debentures offered in the
Remarketing in accordance with this Section 2.1(p), a Successful Remarketing shall
be deemed to have occurred.

     (vi) If, by 4:00 p.m., New York City time, on the last day of the Remarketing
Period, the Remarketing Agent is unable to find buyers for all of the Debentures
offered in the Remarketing in accordance with this Section 2.1(p), such Remarketing
shall be deemed to be a “Failed Remarketing.”

Sixth Supplemental Indenture

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     (vii) The Company shall notify, or cause the Trustee to notify, the Holders of
the Debentures of a Successful Remarketing promptly following the Remarketing
Settlement Date, and shall cause a notice of any Failed Remarketing to be published
on the Business Day following the last day of the Remarketing Period, by
publication in a daily newspaper in the English language of general circulation in
New York City, which is expected to be The Wall Street Journal.

     (viii) The right of each Holder (whether of Separate Debentures or of
Debentures included in Corporate Units) to have its Debentures remarketed and sold
in connection with any Remarketing shall be limited to the extent that (i) the
Remarketing Agents conduct a Remarketing pursuant to the terms of the Remarketing
Agreement, (ii) the Remarketing Agents are able to find a purchaser or purchasers
for the Debentures offered in the Remarketing in accordance with this Section
2.1(p) and the Remarketing Agreement, and (iii) the purchaser or purchasers deliver
the purchase price therefor to the Remarketing Agent as and when required.

     (ix) Neither the Company nor the Remarketing Agents shall be obligated in any
case to provide funds to make payment upon tender of Debentures for Remarketing.

Section 2.2 Company’s Election to Change Certain Terms

     (a) The Company may, without the consent of any Holders of Debentures, in consultation with
the Remarketing Agents, elect at any time at least 30 days prior to the Remarketing Period Start
Date, but on one occasion only:

     (i) to change the maturity of principal of the Debentures to a date that is earlier
than February 15, 2041; provided, however, that the maturity of principal of the Debentures
may not be changed to a date earlier than February 15, 2013;

     (ii) to change the terms of the Debentures to eliminate the Company’s right to redeem
the Debentures at its option or to specify a date, which may not be earlier than February
15, 2013, on and after which the Debentures will be redeemable at the Company’s option
either in whole or in part (as elected by the Company) or to modify the definition of
“Make-Whole Redemption Price” or to provide that the Redemption Price shall be equal to the
principal amount of the Debentures to be redeemed, plus accrued and unpaid interest to the
Redemption Date; or

     (iii) to provide that the Debentures shall bear interest at a floating rate equal to
the applicable index (the “Base Rate”) plus a Reset Spread to be determined in
accordance with Section 2.1(p), in which case the Company may

Sixth Supplemental Indenture

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also elect to modify the business day and day count conventions set forth in Section
2.1(e) to conform to market practice for floating-rate debentures bearing interest at a
rate determined by reference to such index.

     (b) The Company shall make the elections provided for in Section 2.2(a), as applicable, by
giving irrevocable written notice of such elections to the Trustee. Any election under Sections
2.2(a)(i) and 2.2(a)(ii) shall be effective when made, and any such election under Section
2.2(a)(iii) shall be effective on the Remarketing Settlement Date.

     (c) In the case of a Successful Remarketing, on or after the Remarketing Settlement Date the
Debentures will cease to be subordinated and the provisions of Section 2.1(k) shall not apply. In
the case of a Failed Remarketing, the Debentures will remain subordinated to Senior Debt and
Section 2.1(k) will continue to apply.

Section 2.3 Tax Treatment 

     (a) The Company agrees, and by acceptance of a Corporate Unit, each holder of a Corporate Unit
will be deemed to have agreed (unless the United States Internal Revenue Service requires a
different treatment from such holder) (1) for United States federal, state and local income and
franchise tax purposes to treat the acquisition of a Corporate Unit as the acquisition of the
applicable ownership interest in the Debenture and the Other Debentures and the Stock Purchase
Contract constituting the Corporate Unit, (2) to treat the Debenture as indebtedness for United
States federal, state and local income and franchise tax purposes, (3) if such holder purchased
the Corporate Unit in the initial offering for $75, to allocate $25 to the undivided beneficial
ownership interests in the Debenture and each Other Debenture and $0 to the Stock Purchase Contract
included in a Corporate Unit, and (4) to treat the Debenture as a “variable rate debt instrument”
for U.S. federal income tax purposes.

     (b) Any payment (including cash or property) and original issue discount under the terms of
this Sixth Supplemental Indenture shall be subject to withholding and backup withholding of tax as
required by law. Any such withholding and backup withholding shall be treated as if made to the
intended recipient in full compliance with the terms hereof.

ARTICLE THREE

MISCELLANEOUS

Section 3.1 Relationship to Existing Indenture

     The Sixth Supplemental Indenture is a supplemental indenture within the meaning of the
Indenture. The Indenture, as supplemented and amended by this Sixth

Sixth Supplemental Indenture

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Supplemental Indenture, is in all respects ratified, confirmed and approved and, with respect
to the Debentures, the Indenture, as supplemented and amended by this Sixth Supplemental Indenture,
shall be read, taken and construed as one and the same instrument.

Section 3.2 Modification of the Existing Indenture

     Except as expressly modified by this Sixth Supplemental Indenture, the provisions of the
Indenture shall govern the terms and conditions of the Debentures.

Section 3.3 Governing Law

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

Section 3.4 Counterparts

     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.

Section 3.5 Trustee Makes No Representation

     The recitals contained herein are made by the Company and not by the Trustee, and the Trustee
assumes no responsibility for the correctness thereof. The Trustee makes no representation as to
the validity or sufficiency of this Sixth Supplemental Indenture (except for its execution thereof
and its certificates of authentication of the Debentures).

Sixth Supplemental Indenture

-19-

 

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

	 	 	 	 	 	 	 
	 	 	AMERICAN INTERNATIONAL GROUP, INC.	 	 
	 
	 	 	 	 	 	 
	 

	 	By
	 	/s/
Robert A. Gender

	 	 
	 

	 	 	 	Name: Robert A. Gender
	 	 
	 

	 	 	 	Title: Vice President and Treasurer	 	 
	 
	 	 	 	 	 	 
	 	 	THE BANK OF NEW YORK,	 	 
	 	 	as Trustee	 	 
	 
	 	 	 	 	 	 
	 

	 	By	 	/s/
Sherma Thomas

	 	 
	 

	 	 	 	Name: Sherma Thomas

	 

	 	 	 	Title: Assistant
Treasurer

Sixth Supplemental Indenture

 

ANNEX A

     [Include if this Security is a Global Security — THIS SECURITY IS A GLOBAL SECURITY WITHIN THE
MEANING OF THE INDENTURE HEREINAFTER REFERRED TO AND IS REGISTERED IN THE NAME OF A DEPOSITARY OR A
NOMINEE THEREOF. THIS SECURITY MAY NOT BE EXCHANGED IN WHOLE OR IN PART FOR A SECURITY REGISTERED,
AND NO TRANSFER OF THIS SECURITY IN WHOLE OR IN PART MAY BE REGISTERED, IN THE NAME OF ANY PERSON
OTHER THAN SUCH DEPOSITARY OR A NOMINEE THEREOF, EXCEPT IN THE LIMITED CIRCUMSTANCES DESCRIBED IN
THE INDENTURE.

     UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST
COMPANY, A NEW YORK CORPORATION (“DTC”), TO THE COMPANY OR ITS AGENT FOR REGISTRATION OR TRANSFER,
EXCHANGE, OR PAYMENT, AND ANY CERTIFICATE ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR IN SUCH
OTHER NAME AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO CEDE
& CO. OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC), ANY
TRANSFER, PLEDGE, OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL
INASMUCH AS THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.]

AMERICAN INTERNATIONAL GROUP, INC.

5.67% SERIES B-1 JUNIOR SUBORDINATED DEBENTURES

			
	 	 	 
	No.
	 	CUSIP No.: 026874 BN6
	$
	 	ISIN: US026874BN67

     American International Group, Inc., a corporation duly organized and existing under the laws
of Delaware (herein called the “Company”, which term includes any successor Person under
the Indenture hereinafter referred to), for value received, hereby promises to pay to
        , or registered assigns, the principal sum of            Dollars ($
)][Include in Global Security and in Pledged Debenture — the principal sum as set forth on the
Schedule of Increases or Decreases in Security attached hereto, which shall not exceed [ ]] on
February 15, 2041, and to pay interest on said principal sum from May 16, 2008 or from the most
recent Interest Payment Date to which interest has been paid or duly provided for, subject to
deferral as set forth herein, in arrears at a rate (i) of 5.67% per annum on February 1, May 1,
August 1 and November 1 (each such date, an “Interest Payment Date”), commencing August 1,
2008, to but not including the earlier of the repayment of the outstanding principal amount of this
Security and the Remarketing Settlement Date, (ii) if there is a Failed Remarketing, on February
15, 2011 for the period from and including February 1, 2011 to but excluding February 15, 2011 and
(iii) if the Remarketing Settlement Date occurs, equal to the Reset Rate from and including the
Remarketing Settlement Date, on each February 1 and August 1, or if the Company has elected that
this Security will bear interest at a floating rate after the Remarketing Settlement Date, equal to
the Base Rate plus the Reset Spread, on each February 1, May 1, August 1 and November 1, subject to
adjustment as provided herein, commencing with the first such date to occur after the Remarketing
Settlement Date, until

Series B-1 Debenture

A-1

 

the principal hereof shall have become due and payable, and on any overdue principal and
premium, if any, and (without duplication and to the extent that payment of such interest is
enforceable under applicable law) on any overdue installment of interest at the same rate per annum
compounded on each Interest Payment Date. The amount of interest payable on any Interest Payment
Date shall, except as provided herein, be computed (i) for any full quarterly or semi-annual period
on the basis of a 360-day year comprised of twelve 30-day months, (ii) for any period shorter than
a full quarterly or semi-annual period, on the basis of a 30-day month and, for (iii) any period
less than a month, on the basis of the actual number of days elapsed per 30-day month. In the
event that any date on which interest is payable on this Security is not a Business Day, then
payment of interest payable on such date will be made on the next succeeding day that is a Business
Day (and without any interest or other payment in respect of any such delay). The interest
installment so payable, and punctually paid or duly provided for, on any Interest Payment Date
will, as provided in the Indenture, be paid to the Person in whose name this Security (or one or
more Predecessor Securities, as defined in said Indenture) is registered at the close of business
on the Regular Record Date for such interest installment, which shall be the close of business on
the 15th day of the month prior to the month in which the Interest Payment Date falls,
or on February 1, 2011 in the case of the Interest Payment Date, if any, that falls on February 15,
2011, whether or not a Business Day or such other date as the Company may specify. Any such
interest installment not punctually paid or duly provided for (other than Deferred Interest) shall
forthwith cease to be payable to the registered Holders on such Regular Record Date and may 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 to be fixed by the Trustee for the payment of such
Defaulted Interest, notice whereof shall be given to the registered Holders of this series of
Securities not less than 10 days prior to such special record date, or may be paid at any time in
any other lawful manner not inconsistent with the requirements of any securities exchange on which
the Securities may be listed, and upon such notice as may be required by such exchange, all as more
fully provided in the Indenture.

     Until the Remarketing Settlement Date, if any, the indebtedness evidenced by this Security is,
to the extent provided in the Indenture, subordinate and junior in right of payment to the prior
payment in full of all Senior Debt of the Company, and this Security is issued subject to the
provisions of the Indenture with respect thereto. Each Holder of this Security, by accepting the
same, (a) agrees to and shall be bound by, such provisions, (b) authorizes and directs the Trustee
on his or her behalf to take such action as may be necessary or appropriate to acknowledge or
effectuate the subordination so provided and (c) appoints the Trustee his or her attorney-in-fact
for any and all such purposes. Each Holder hereof, by his or her acceptance hereof, hereby waives
all notice of the acceptance of the subordination provisions contained herein and in the Indenture
by each holder of Senior Debt of the Company, whether now outstanding or hereafter incurred, and
waives reliance by each such holder upon said provisions.

     The Company shall have the right, at any time and from time to time, prior to February 15,
2011 to defer the payment of interest on this Security for one or more consecutive Interest Periods
as described on the reverse hereof. The Company shall give

Series B-1 Debenture

A-2

 

written notice to the Trustee and the Holders of this Security of its election to begin any
Deferral Period at least one Business Day prior to the Regular Record Date for that Interest
Payment Date, provided, however, that the Company’s failure to pay any interest due within five
Business Days after any Interest Payment Date occurring prior to the First Stock Purchase Date
shall automatically and without any further action by any Person be deemed to commence a Deferral
Period.

     Payment of the principal of (and premium, if any) and interest on this Security will be made
at the office or agency of the Company maintained for that purpose in the Borough of Manhattan, The
City of New York, in such coin or currency of the United States of America as at the time of
payment is legal tender for payment of public and private debts; 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 or by wire transfer of
immediately available funds to an account designated by the Holder of this Security.

     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.

Series B-1 Debenture

A-3

 

     IN WITNESS WHEREOF, the Company has caused this instrument to be duly executed.

     Dated:

	 	 	 	 	 	 	 
	 	 	American International Group, Inc.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 

Name:
	 	 
	 

	 	 	 	Title:	 	 
	 
	 	 	 	 	 	 
	Attest:
	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 

  [Secretary or Assistant Secretary]

	 	 	 	 	 	 

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

Dated:

	 	 	 	 	 	 	 
	 	 	The Bank of New York,
as Trustee	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 

Name:
	 	 
	 

	 	 	 	Title:	 	 

Series B-1 Debenture

(Signature Page for Security)

 

ANNEX A

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 a Junior
Subordinated Debt Indenture, dated as of March 13, 2007 (herein called the “Base
Indenture”), as supplemented by a Sixth Supplemental Indenture, dated as of May 16, 2008
(herein called the “Sixth Supplemental Indenture” and, together with the Base Indenture,
the “Indenture”), in each case, between the Company and The Bank of New York, as Trustee
(herein called the “Trustee”, which term includes any successor trustee under the
Indenture), and reference is hereby made to the Indenture for a statement of the respective rights,
limitations of rights, duties and immunities thereunder of the Company, the Trustee, the holders of
Senior Debt 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 $1,960,000,000 (except for Securities authenticated
and delivered upon registration or transfer of, or exchange for, or in lieu of, other Securities
pursuant to Section 304, 305, 306, 906 or 1107 of the Base Indenture or 2.1(n) or 2.1(p) of the
Sixth Supplemental Indenture).

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

     The Securities of this series are subject to redemption on or after February 15, 2013, in
whole or in part, upon not less than 30 days nor more than 60 days’ prior notice by first class
mail, postage pre-paid, to each Holder of Securities to be redeemed, at a Redemption Price equal to
the greater of 100% of the principal amount thereof and the Make-Whole Redemption Price, plus, in
either case, accrued and unpaid interest, if any, to the Redemption Date.

     In the event of redemption of this Security in part only, a new Security or Securities of this
series and of like tenor and of an authorized denomination for the unredeemed portion hereof will
be issued in the name of the Holder hereof upon the cancellation hereof.

     The Company may elect at any time at least 30 days prior to the Remarketing Period Start Date,
but on one occasion only:

     (i) to change the maturity of principal of this Security to a date that is earlier
than February 15, 2041; provided, however, that the maturity of principal of this Security
may not be changed to a date earlier than February 15, 2013;

     (ii) to change the terms of this Security to eliminate the Company’s right to redeem
this Security at its option or to specify a date that may not be earlier than February 15,
2013 on and after which this Security will be redeemable at the Company’s option either in
whole or in part (as elected by the Company) or to modify the definition of Make-Whole
Redemption Price or to provide that the

Series B-1 Debenture

A-5

 

Redemption Price shall be equal to the principal amount of this Security to be
redeemed, plus accrued and unpaid interest to the Redemption Date; or

     (iii) to provide that this Security shall bear interest at a floating rate equal to
the applicable index plus a Reset Spread determined in accordance with Section 2.1(p) of
the Sixth Supplemental Indenture, in which case the Company may also elect to modify the
business day and day count conventions set forth in Section 2.1(e) of the Sixth
Supplemental Indenture to conform to market practice for floating-rate debentures bearing
interest at a rate determined by reference to such index.

     The elections set forth in clauses (i) and (ii) of the preceding paragraph shall become
effective immediately upon the Trustee’s receipt of such notice and the election set forth in
clause (iii) above shall become effective on the Remarketing Settlement Date.

     The Indenture contains provisions permitting the Company and the Trustee, with the consent of
the Holders of not less than a majority in aggregate principal amount of the Securities of each
series affected at the time Outstanding, to execute supplemental indentures for the purpose of
adding any provisions to or changing in any manner or eliminating any of the provisions of the
Indenture or of any supplemental indenture or of modifying in any manner the rights of the Holders
of the Securities; provided, however, that, except as provided above and in the Sixth Supplemental
Indenture, no such supplemental indenture shall (i) extend the fixed maturity of any Securities of
any series, or reduce the principal amount thereof, reduce the rate or extend the time of payment
of interest thereon, reduce any premium payable upon the redemption thereof, modify the right of
Holders of Securities that are Separate Debentures to require the Company to purchase such
Securities upon a Failed Remarketing, or modify the provisions of the Indenture relating to the
Remarketing of the Securities, without the consent of the Holder of each Security so affected, or
(ii) reduce the aforesaid percentage of Securities the Holders of which are required to consent to
any such supplemental indenture, without the consent of the Holders of each Security then
outstanding and affected thereby. The Indenture also contains provisions permitting the Holders of
a majority in aggregate principal amount of the Securities of any series at the time outstanding
affected thereby, on behalf of all of the Holders of the Securities of such series, to waive any
past default in the performance of any of the covenants contained in the Indenture, or established
pursuant to the Indenture with respect to such series, and its consequences, except a default in
the payment of the principal of or premium, if any, or interest (subject to the Company’s right to
defer interest payments) on any of the Securities of such series. Any such consent or waiver by
the registered Holder of this Security (unless revoked as provided in the Indenture) shall be
conclusive and binding upon such Holder and upon all future Holders and owners of this Security and
of any Security issued in exchange herefor or in place hereof (whether by registration of transfer
or otherwise), irrespective of whether or not any notation of such consent or waiver is made upon
this Security.

Series B-1 Debenture

A-6

 

     No reference herein to the Indenture and no provision of this Security or of the Indenture
shall alter or impair the obligation of the Company, which is absolute and unconditional, to pay
the principal of and premium, if any, and interest (subject to the Company’s right to defer
interest payments) on this Security at the time and place and at the rate and in the money herein
prescribed.

     The Company shall have the right, at any time and from time to time prior to February 15,
2011, to defer the payment of interest on the Securities for one or more consecutive Interest
Periods; provided that no Deferral Period shall extend beyond February 15, 2011 (such interest
referred to as “Deferred Interest”). Deferred Interest will accrue interest at the rate of
5.67% per annum compounded on each Interest Payment Date. The Company agrees that (A) until
February 15, 2011, (x) if an Event of Default has occurred and is continuing, (y) the Company has
given notice of its election to defer interest payments but the Deferral Period has not yet
commenced or (z) a Deferral Period is continuing, (B) the Company has given notice of its election
to defer Contract Adjustment Payments but the related deferral period has not yet commenced or a
deferral period is continuing with respect to such Contract Adjustment Payments, or (C) Additional
Debentures are outstanding, the Company shall not, and shall not permit any Subsidiary, subject to
the exceptions specified below, to: (a) declare or pay any dividends or distributions on, or
redeem, purchase, acquire or make a liquidation payment with respect to, any Capital Stock of the
Company, (b) make any payment of principal of, or interest or premium, if any, on, or repay,
purchase or redeem any debt securities of the Company that rank pari passu with, or junior to, this
Security or (c) make any payments with respect to any Guarantee by the Company of securities of any
Subsidiary if such Guarantee ranks pari passu with, or junior to, this Security. The Company may
pay Deferred Interest (together with compounded interest thereon, if any, to the extent permitted
by applicable law) to the Holder at any time either in the form of cash or in the form of
Additional Debentures having a principal amount equal to the amount of accrued but unpaid Deferred
Interest on the date of issuance and maturing on the later of August 1, 2014 and the date five
years after the date of commencement of the Deferral Period; provided, however, that the Company
must pay any accrued but unpaid Deferred Interest to the Holder either in the form of cash or in
the form of Additional Debentures on the First Stock Purchase Date, whether or not such Holder
participates in the Remarketing. Deferred Interest paid on any Interest Payment Date shall be
payable to the Person in whose name the Debentures are registered at the close of business on the
Regular Record Date next preceding such Interest Payment Date, provided that the Company may
establish a Special Record Date for any Deferred Interest to be paid on a date other than an
Interest Payment Date and Holders on that Special Record Date shall be entitled to payment of the
Deferred Interest. Upon termination of any Deferral Period and upon the payment of all Deferred
Interest and any compounded interest then due on any Interest Payment Date, the Company may elect
to begin a new Deferral Period.

     The restrictions on payments do not apply to (a) purchases, redemptions or other acquisitions
of shares of the Company’s Capital Stock in connection with (1) any Employee Benefit Plan or the
Assurance Agreement or (2) a dividend reinvestment, stock

Series B-1 Debenture

A-7

 

purchase plan or other similar plan, (b) any exchange or conversion of any class or series of
the Company’s Capital Stock (or the Capital Stock of any Subsidiary) for any class or series of the
Company’s Capital Stock or of any class or series of Indebtedness of the Company for any class or
series of the Company’s Capital Stock, (c) the purchase of fractional interests in shares of the
Capital Stock of the Company in accordance with the conversion or exchange provisions of the
Company’s Capital Stock or the security or instrument being converted or exchanged, (d) any
declaration of a dividend in connection with any stockholders’ right plan, or the issuance of
rights, equity securities or other property under any stockholders’ right plan, or the redemption
or repurchase of rights in accordance with any stockholders’ rights plan, (e) any dividend in the
form of equity securities, warrants, options or other rights where the dividend stock or the stock
issuable upon exercise of the warrants, options or other rights is the same stock as that on which
the dividend is being paid or ranks pari passu with or junior to such equity securities, (f) any
payment during a Deferral Period of current or deferred interest in respect of any debt securities
of the Company that rank pari passu with the Debentures that is made pro rata to the amounts due on
pari passu securities and the Debentures, (g) any payments of deferred interest or principal on
such pari passu securities that, if not made, would cause the Company to breach the terms of the
instrument governing such pari passu securities, (h) the repurchase of any debt securities of the
Company that rank pari passu with this Security in exchange for common stock in connection with a
failed remarketing or similar event, any payment of deferred interest on any such debt securities
in the form of additional debentures that will rank pari passu with this Security and the repayment
of any such additional debentures at maturity or (i) any repayment or redemption of a security
necessary to avoid a breach of the instrument governing that security.

     After the First Stock Purchase Date, so long as this Security bears interest at a fixed rate
of interest, this Security will be subject to defeasance of the entire indebtedness of this
Security and of certain restrictive covenants and events of default, in each case upon compliance
with certain conditions set forth in the Indenture.

     After the First Stock Purchase Date, the Securities of this series will be entitled to the
benefits of the Events of Default described in the Base Indenture. Until the First Stock Purchase
Date, the Securities of this series are entitled to the Events of Default specified in the Sixth
Supplemental Indenture.

     As provided in and subject to the provisions of the Indenture, the Holder of this Security
shall not have the right to institute any proceeding with respect to the Indenture or for the
appointment of a receiver or trustee or for any other remedy thereunder, unless such Holder shall
have previously given the Trustee written notice of a continuing Event of Default with respect to
the Securities of this series, the Holders of not less than 25% in principal amount of the
Securities of this series at the time outstanding shall have made written request to the Trustee to
institute proceedings in respect of such Event of Default, as Trustee and offered the Trustee
reasonable indemnity, and the Trustee shall not have received from the Holders of a majority in
principal amount of Securities of this series at the time outstanding a direction inconsistent with
such request, and shall have failed to

Series B-1 Debenture

A-8

 

institute any such proceeding, for 60 days after receipt of such notice, request and offer of
indemnity. The foregoing shall not apply to any suit instituted by the Holder of this Security for
the enforcement of any payment of principal hereof or any premium or, to the extent provided in
Section 2.1(g) of the Sixth Supplemental Indenture, interest hereon on or after the respective due
dates.

     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 any premium 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.

     The Securities of this series are issuable only in registered form without coupons in
denominations of $1,000 and integral multiples of $1,000 in excess thereof. As provided in the
Indenture and subject to certain limitations therein set forth, Securities of this series are
exchangeable for a like aggregate principal amount of Securities of this series and of like tenor
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.

     The Company agrees, and by acceptance of a Corporate Unit, each holder of a Corporate Unit
will be deemed to have agreed (unless the United States Internal Revenue Service requires a
different treatment from such holder) (1) for United States federal, state and local income and
franchise tax purposes to treat the acquisition of a Corporate Unit as the acquisition of the
applicable ownership interest in this Security and the Other Debentures and the Stock Purchase
Contract constituting the Corporate Unit, (2) to treat this Security as indebtedness for United
States federal, state and local income and franchise tax purposes, (3) if such holder purchased the
Corporate Unit in the initial offering for $75, to allocate $25 to the undivided beneficial
ownership interests in this Security and each Other Debenture and $0 to the Stock Purchase Contract
included in a Corporate Unit, and (4) to treat this Security as a “variable rate debt instrument”
for U.S. federal income tax purposes.

Series B-1 Debenture

A-9

 

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

Series B-1 Debenture

A-10

 

ABBREVIATIONS

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

	 	 	 
	TEN COM:

	 	as tenants in common
	 
	 	 
	UNIF GIFT MIN ACT:    

	 	                        Custodian                                    
	 

	 	(Cust) (Minor)
	 
	 	 
	TEN ENT:

	 	as tenants by the entireties
	 
	 	 
	JT TEN:

	 	as joint tenants with right of survivorship and not as tenants in common
	 
	 	 
	Under Uniform Gifts
to Minors Act
(State)
	 	 

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

Series B-1 Debenture

A-11

 

ASSIGNMENT

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

 

 

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

 

 

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

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

	 	 	 	 	 	 	 	 	 
	Dated:

	 	 	 	Signature	 	 	 	 
	 

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

Series B-1 Debenture

A-12

 

[TO BE ATTACHED TO GLOBAL CERTIFICATES AND PLEDGED

DEBENTURES]

SCHEDULE OF INCREASES OR DECREASES IN SECURITY

The initial principal amount of Securities represented by this [Global] Security is
$         . The following increases or decreases in this [Global] Security have been made:

	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	Signature of
	 	 	 	 	 	 	Principal	 	authorized
	 	 	Amount of	 	Amount of	 	amount of this	 	signatory of
	 	 	increase in	 	decrease in	 	Security	 	[Security
	 	 	principal	 	principal	 	following such	 	Registrar]
	 	 	amount of this	 	amount of this	 	decrease or	 	[Collateral
	Date	 	Security	 	Security	 	increase	 	Agent]
	 

	 	 
	 	 
	 	 
	 	 
	 

	 	 
	 	 
	 	 
	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 
	 	 
	 	 
	 	 
	 

	 	 
	 	 
	 	 
	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 
	 	 
	 	 
	 	 
	 

	 	 
	 	 
	 	 
	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 
	 	 
	 	 
	 	 
	 

	 	 
	 	 
	 	 
	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 
	 	 
	 	 
	 	 
	 

	 	 
	 	 
	 	 
	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 
	 	 
	 	 
	 	 
	 

	 	 
	 	 
	 	 
	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 
	 	 
	 	 
	 	 
	 

	 	 
	 	 
	 	 
	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 
	 	 
	 	 
	 	 
	 

	 	 
	 	 
	 	 
	 	 

Series B-1 Debenture

A-13

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