Document:

<PAGE>

                                                                  Exhibit 4.1

                                  TELYNX, INC.
                             2002 STOCK OPTION PLAN

     1. Purprose. The purpose of the Telynx, Inc. 2002 Stock Plan (the "Plan")
        --------
is to establish a flexible vehicle through which Telynx, Inc., a Delaware
corporation (the "Company"), can award stock grants or stock options to eligible
personnel of the Company and its affiliates in order to attract, retain and
motivate such personnel and to further align the interests of such personnel
with those of the stockholders of the Company.

     2. Types of Awards. Awards under the Plan may be in the form of shares of
        ---------------
the Company's common stock, par value $0.01 per share (the "Common Stock"), or
options to purchase Common Stock including options intended to qualify as
"incentive stock options" ("ISOs") within the meaning of Section 422 of the
Internal Revenue Code of 1986, as amended (the "Code") and options which do not
qualify as ISOs.

     3. Administration.
        --------------

                  (a) Committee. The Plan shall be administered by the Board of
                      ---------
Directors of the Company (the "Board") or a committee thereof appointed by the
Board (the Board in such capacity or such committee being referred to as the
"Committee"). To the extent that the Plan is administered by the Board, the
Board shall have all of the authority and responsibility granted to the
Committee herein. If a Committee is appointed hereunder, then, unless the Board
determines otherwise, its members shall consist solely of individuals who
qualify as "non-employee directors" under Rule 16b-3 promulgated under the
Securities Exchange Act of 1934, as amended (the "Exchange Act"), and as
"outside directors" under Section 162(m) of the Code. If for any reason the
Committee does not satisfy the "non-employee director" requirements of Rule
16b-3 or the "outside director" requirements of Section 162(m) of the Code, such
non-compliance shall not affect the validity of the awards, interpretations or
other actions of the Committee.

                  (b) Authority of Committee. Subject to the limitations of the
                      ----------------------
Plan, the Committee, acting in its sole and absolute discretion, shall have full
power and authority to (i) select the persons to whom options shall be made
under the Plan, (ii) grant options to such persons and prescribe the terms and
conditions of such options, (iii) construe, interpret and apply the provisions
of the Plan and of any agreement or other instrument evidencing an option
granted under the Plan, (iv) prescribe, amend and rescind rules and regulations
relating to the Plan, including rules governing its own operations, (v) correct
any defect, supply any omission and reconcile any inconsistency in the Plan,
(vi) amend any outstanding option in any respect, including, without limitation,
to accelerate the time or times at which the option becomes vested, (vii) carry
out any responsibility or duty specifically reserved to the Committee under the
Plan, and (viii) make any and all determinations and interpretations and take
such other actions as may be necessary or desirable in order to carry out the
provisions, intent and purposes of the Plan. A majority of the members of the
Committee shall constitute a quorum. The Committee may act by the vote of a
majority of its members present at a meeting at which there is a quorum or by
unanimous written consent.

                  (c) Indemnification. The Company shall indemnify and hold
                      ---------------
harmless each member of the Committee and any employee or director of the
Company to whom any duty or power relating to the administration or
interpretation of the Plan is delegated from and against any loss, cost,
liability (including any sum paid in settlement of a claim with the approval of
the Board), damage and expense (including legal and other expenses incident
thereto) arising out of or incurred in connection with the Plan, unless and
except to the extent attributable to such person's, fraud or willful misconduct.

     4. Share Limitations. Subject to adjustment pursuant to Section 11 below,
        -----------------
the maximum number of shares of Common Stock that may be issued under the Plan
is 250,000,000. For this purpose, the following shares shall be deemed not to
have been issued and shall be deemed to remain available for issuance: (i)
shares covered by the unexercised portion of an option that terminates, expires
or is canceled and (ii) shares that are withheld in order to pay the purchase
price for shares covered by any

<PAGE>

option or to satisfy the tax withholding obligations associated with any option
granted under the Plan. Shares of Common Stock available for issuance under the
Plan may be either authorized and unissued or held by the Company in its
treasury. No fractional shares of Common Stock shall be issued under the Plan.

     5. Eligibility. Awards under the Plan may be made to such officers,
        -----------
directors, employees (including prospective employees), consultants and other
individuals who may perform services for the Company or its affiliates, as the
Committee may select. In making awards under the Plan, the Committee shall give
consideration to the functions and responsibilities of a potential optionee, the
potential optionee's previous and/or expected future contributions to the
business of the Company or its affiliates and such other factors as the
Committee deems relevant under the circumstances.

     6. Stock Options. Subject to the provisions of the Plan, the Committee may
        -------------
grant options to eligible personnel upon such terms and conditions as the
Committee deems appropriate. The terms and conditions of any option shall be
evidenced by a written option agreement or other instrument approved for this
purpose by the Committee.

                  (a) Exercise Price. The exercise price per share of Common
                      --------------
Stock covered by an option granted under the Plan may not be less than the fair
market value per share on the date of grant, unless otherwise determined by the
Committee (or, in the case of an ISO granted to an optionee who, at the time the
option is granted, owns stock possessing more than 10% of the total combined
voting power of all classes of stock of the Company or a "subsidiary" of the
Company within the meaning of Section 424 of the Code, 110% of fair market
value).

                  (b) Option Term. No option granted under the Plan may be
                      -----------
exercisable (if at all) more than ten years after the date the option is granted
(or, in the case of an ISO granted to a ten percent stockholder described in
Section 422 of the Code, five years).

                  (c) Vesting and Exercise of Options. The Committee may
                      -------------------------------
establish such vesting and other conditions and restrictions on the exercise of
an option and/or upon the issuance of Common Stock in connection with the
exercise of an option as it deems appropriate. Subject to satisfaction of
applicable withholding requirements, once vested and exercisable, an option may
be exercised by transmitting to the Company: (i) a notice specifying the number
of shares to be purchased, and (ii) payment of the exercise price. The exercise
price of an option may be paid in cash and/or such other form of payment as the
Committee may permit from time to time.

                  (d) Rights as a Stockholder. No shares of Common Stock shall
                      -----------------------
be issued in respect of the exercise of an option until full payment of the
exercise price and the applicable tax withholding obligation with respect to
such exercise has been made or provided for. The holder of an option shall have
no rights as a stockholder with respect to any shares covered by an option until
the date such shares are issued. Except as otherwise provided herein, no
adjustments shall be made for dividend distributions or other rights for which
the record date is prior to the date such shares are issued.

                  (e) Buy Out and Settlement. The Committee, on behalf of the
                      ----------------------
Company, may at any time offer to buy out any outstanding option on such terms
and conditions as the Committee shall establish.

     7. Termination of Employment or Other Service. Unless otherwise determined
        ------------------------------------------
by the Committee at grant or, if no rights of the optionee are thereby reduced,
thereafter, and subject to earlier termination in accordance with the provisions
hereof, the following rules apply with regard to options held by an optionee at
the time of his or her termination of employment or other service with the
Company or its affiliates.

                  (a) Termination by Reason of Death. If an optionee's
                      ------------------------------
employment or other service terminates by reason of his or her death, then any
option held by the deceased optionee shall thereupon become fully vested and may
be exercised by the deceased optionee's beneficiary at any time within one year
from the date of death but in no event after expiration of the stated term and,
to the extent not so exercised, shall thereupon terminate.

<PAGE>

                  (b) Termination by Reason of Disability. If an optionee's
                      -----------------------------------
employment or other service is terminated by the Company or its affiliates due
to his or her Disability (as hereinafter defined), then any option held by the
optionee, to the extent exercisable on the date his or her employment or other
service terminates, may be exercised by the optionee at any time within one year
from the date his or her employment or other service terminates but in no event
after expiration of the stated term, and, to the extent not so exercised, shall
thereupon terminate. If the optionee dies during such one-year period, then the
deceased optionee's beneficiary may exercise the option, to the extent
exercisable by the deceased optionee immediately prior to his or her death, for
a period of one year following the date of death but in no event after
expiration of the stated term. "Disability" means an optionee's absence from
employment for at least 180 days in any twelve month period as a result of his
or her incapacity due to physical or mental illness, as determined by the
Committee.

                  (c) Termination for Cause. If an optionee's employment or
                      ---------------------
other service is terminated by the Company or its affiliates for Cause (as
hereinafter defined) or if, at the time of an optionee's termination, a ground
for termination for Cause exists, then, notwithstanding anything to the contrary
contained herein, any option held by the optionee (whether or not otherwise
vested) shall immediately terminate and cease to be exercisable. A termination
for "Cause" means (i) in the case where there is no employment or consulting
agreement between the optionee and the Company or its affiliates or where such
an agreement exists but does not define "Cause" (or words of like import), a
termination classified by the Company or its affiliates as a termination due to
the optionee's dishonesty, fraud, insubordination, willful misconduct, refusal
to perform services or materially unsatisfactory performance of his or her
duties, or (ii) in the case where there is an employment or consulting agreement
between the optionee and the Company or its affiliates, a termination that is or
would be deemed for "cause" (or words of like import) under such agreement.

                  (d) Other Termination. If an optionee's employment or other
                      -----------------
service terminates for any reason (other than death, Disability or Cause or at a
time when Cause exists) or no reason, then any option held by the optionee, to
the extent not then exercisable, shall thereupon terminate. Any option held by
the optionee which is exercisable at the time of such termination of employment
or other service shall remain exercisable during the thirty-day period following
such termination of employment or other service or, if sooner, until the
expiration of the stated term of the option and, to the extent not exercised
within such period, shall thereupon terminate.

     8.  Fair Market Value. For purposes of the Plan, the "fair market value" of
         -----------------
a share of Common Stock, as of any date shall mean, unless otherwise required by
other applicable law, the closing sale price per share of Common Stock as
published by the principal national securities exchange on which the Common
Stock is traded on such date or, if there is no sale of Common Stock on such
date, the average of the bid and asked prices on such exchange at the close of
trading on such date, or if shares of the Common Stock are not listed on a
national securities exchange on such date, the closing price or, if none, the
average of the bid and asked prices in the over-the-counter market at the close
of trading on such date, or if the Common Stock is not traded on a national
securities exchange or the over-the-counter market, the value of a share of the
Common Stock on such date as determined in good-faith by the Committee in a
uniform and consistent manner.

     9.  Non-Transferability. No option granted under the Plan shall be
         -------------------
transferable by an optionee other than upon the optionee's death to a
beneficiary designated by the optionee in a manner acceptable to the Committee,
or, if no designated beneficiary shall survive the optionee, pursuant to the
optionee's will or by the laws of descent and distribution. All stock options
shall be exercisable during the optionee's lifetime only by the optionee. Except
as otherwise specifically provided by law, no option granted under the Plan may
be transferred in any manner, and any attempt to transfer any such option shall
be void, and no such option shall in any manner be liable for or subject to the
debts, contracts, liabilities, engagements or torts of any person who shall be
entitled to such option, nor shall it be subject to attachment or legal process
for or against such person. Notwithstanding the foregoing, the Committee may
determine at the time of grant or thereafter that an option that is not
designated as an ISO is transferable in whole or part to such persons, under
such circumstances, and subject to such conditions as the Committee may
prescribe.

     10. Other Conditions. The Committee may impose such other conditions with
         ----------------
respect to the grant of options or the issuance of shares of Common Stock upon
the exercise of options granted pursuant to the Plan, including, without
limitation,

<PAGE>

conditions relating to the application of federal or state securities laws or
exchange requirements as it deems necessary or advisable.

     11.      Capital Changes; Change in Control; Merger.
              ------------------------------------------

                  (a) Adjustments Upon Changes in Capitalization. The maximum
                      ------------------------------------------
number and class of shares that may be issued under the Plan, the maximum number
and class of shares with respect to which options may be granted to any employee
in any calendar year, the number and class of shares covered by each outstanding
option and the exercise price per share shall all be adjusted proportionately or
as otherwise appropriate to reflect any increase or decrease in the number of
issued shares of Common Stock resulting from a split-up or consolidation of
shares or any like capital adjustment, or the payment of any stock dividend,
and/or to reflect a change in the character or class of shares covered by the
Plan arising from a readjustment or recapitalization of the Company's capital
stock.

                  (b) Merger; Consolidation. In the event of a merger,
                      ---------------------
consolidation, mandatory share exchange or other similar business combination of
the Company with or into any other entity ("Successor Entity") or any
transaction in which another person or entity acquires all the issued and
outstanding Common Stock, or all or substantially all the assets of the Company,
outstanding options may be assumed or an equivalent option may be substituted by
the Successor Entity or a parent of the Successor Entity, provided that, if and
to the extent that outstanding options are not assumed or replaced with
substantially equivalent options, then the optionees shall be permitted to
exercise their outstanding options, whether or not otherwise vested or
exercisable, for a period of at least fifteen (15) days prior to such
transaction, and any outstanding options which are not exercised before such
transaction shall thereupon terminate,.

                  (c) Fractional Shares. In the event of any adjustment in the
                      -----------------
number of shares covered by any option pursuant to the provisions hereof, any
fractional shares resulting from such adjustment shall be disregarded, and each
such option shall cover only the number of full shares resulting from the
adjustment.

                  (d) Determinations Final. All adjustments under this Section
                      --------------------
11 shall be made by the Committee, and its determination as to what adjustments
shall be made, and the extent thereof, shall be final, binding and conclusive.

     12. Tax Withholding. As a condition to the exercise of any option or the
         ---------------
delivery or in connection with any other event that gives rise to a federal or
other governmental tax withholding obligation on the part of the Company
relating to an option: (a) the Company may deduct or withhold (or cause to be
deducted or withheld) from any payment or distribution to an optionee whether or
not pursuant to the Plan, or (b) the Company shall be entitled to require that
the grantee remit cash to the Company (through payroll deduction or otherwise),
in each case in an amount sufficient in the opinion of the Company to satisfy
such withholding obligation. If the event giving rise to the withholding
obligation involves a transfer of shares of Common Stock, then, unless the
applicable option agreement provides otherwise, at the discretion of the
Committee, the optionee may satisfy the withholding obligation described under
this Section 12 by electing to have the Company withhold shares of Common Stock
(which withholding shall be at a rate not in excess of the statutory minimum
rate) or by tendering previously-owned shares of Common Stock, in each case
having a fair market value equal to the amount of tax to be withheld (or by any
other mechanism as may be required or appropriate to conform with local tax and
other rules).

     13. Amendment and Termination. The Board may amend or terminate the Plan,
         -------------------------
provided, however, that no such action may adversely affect the rights of the
holder of any outstanding option without the consent of the holder. Except as
otherwise provided in Section 11, any amendment which would increase the number
of shares of Common Stock which may be issued under the Plan (in the aggregate
or on an individual basis) or modify the class of employees eligible to receive
options under the Plan shall be subject to the approval of the Company's
stockholders if and to the extent that such approval is necessary or desirable
to comply with applicable law or exchange or listing requirements. The Committee
may amend the terms of any agreement or certificate made or issued hereunder at
any time and from time to time, provided, however, that any amendment which
would adversely affect the rights of the holder may not be made without his or
her consent.

<PAGE>

     14. No Rights Conferred. Nothing contained herein shall be deemed to give
         --------------------
any individual any right to receive an option under the Plan or to be retained
in the employ or other service of the Company or its affiliates.

     15. Decisions and Determinations to be Final. All decisions and
         ----------------------------------------
determinations made by the Board pursuant to the provisions hereof and, except
to the extent rights or powers under the Plan are reserved specifically to the
discretion of the Board, all decisions and determinations of the Committee shall
be final, binding and conclusive.

     16. Governing Law. All rights and obligations under the Plan and each
         -------------
option agreement or instrument shall be governed by and construed in accordance
with the laws of the State of Delaware, without regard to its principles of
conflict of laws.

     17. Term of the Plan. The Plan shall become effective on the date of its
         -----------------
adoption by the Board. Unless sooner terminated by the Board, the Plan shall
terminate on the tenth anniversary of the date of its adoption by the Board. The
rights of any person with respect to an option granted under the Plan that is
outstanding at the time of the termination of the Plan shall not be affected
solely by reason of the termination of the Plan and shall continue in accordance
with the terms of the option (as then in effect or thereafter amended) and the
Plan.EX-4.1:  INDENTURE

 

Exhibit 4.1

THE ST. PAUL COMPANIES, INC.

TO

JPMORGAN CHASE BANK

Trustee

INDENTURE

Dated as of March 12, 2002

SENIOR DEBT SECURITIES

 

 

The St. Paul Companies, Inc.

Reconciliation and tie between Trust Indenture Act of 1939

and Indenture, dated as of March 12, 2002

	 	 	 	 	 
	Trust Indenture	 	 	Indenture
	Act Section	 	 	Section
	
	 	 	

					
	§ 310(a)
	(1)	 	609	 
	(a)
	(2)	 	609	 
	(a)
	(3)	 	Not Applicable
	(a)
	(4)	 	Not Applicable
	(b)
	 	 	608	 
	 
	 	 	610	 
	§ 311(a)
	 	 	613(a)
	(b)
	 	 	613(b)
	(b)
	(2)	 	703(a)(2)
	 
	 	 	703(b)
	§ 312(a)
	 	 	701	 
	 
	 	 	702(a)
	(b)
	 	 	702(b)
	(c)
	 	 	702(a)
	§ 313(a)
	 	 	703(a)
	(b)
	 	 	703(b)
	(c)
	 	 	703(a), 703(b)
	(d)
	 	 	703(c)
	§ 314(a)
	 	 	704
	(b)
	 	 	Not Applicable
	(c)
	(1)	 	102	 
	(c)
	(2)	 	102	 
	(c)
	(3)	 	Not Applicable
	(d)
	 	 	Not Applicable
	(e)
	 	 	
102	 
	§ 315(a)
	 	 	601(a)
	(b)
	 	 	602	 
	 
	 	 	703(a)(6)
	(c)
	 	 	601(b)
	(d)
	 	 	601(c)
	(d)
	(1)	 	601(a)(1)
	(d)
	(2)	 	601(c)(2)
	(d)
	(3)	 	601(c)(3)
	(e)
	 	 	514	 
	§ 316(a)
	 	 	
101	 
	(a)
	(1)(A)	 	502	 
	 
	 	 	512	 
	(a)
	(1)(B)	 	513	 
	(a)
	(2)	 	Not Applicable

 

 

	 	 	 	 	 
	Trust Indenture	 	 	Indenture
	Act Section	 	 	Section
	
	 	 	

					
	(b)
	 	 	508
	§ 317(a)
	(1)	 	503
	(a)
	(2)	 	504	 
	(b)
	 	 	1003	 
	§ 318(a)
	 	 	107	 

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

 

 

TABLE OF CONTENTS

	 	 	 	 	 
	 	 	Page
	PARTIES
	 	 	
1	 
	RECITALS OF THE COMPANY
	 	 	
1	 

ARTICLE ONE

Definitions and Other Provisions of General Application

	 	 	 	 	 	 	 
	Section 101.
	 	
Definitions

	 	 	1	 
	 
	 	
Act

	 	 	2	 
	 
	 	
Affiliate

	 	 	2	 
	 
	 	
Authenticating Agent

	 	 	2	 
	 
	 	
Board of Directors

	 	 	2	 
	 
	 	
Board Resolution

	 	 	2	 
	 
	 	
Business Day

	 	 	3	 
	 
	 	
Commission

	 	 	3	 
	 
	 	
Company

	 	 	3	 
	 
	 	
Company Request

	 	 	3	 
	 
	 	
Company Order

	 	 	3	 
	 
	 	
Corporate Trust Office

	 	 	3	 
	 
	 	
corporation

	 	 	3	 
	 
	 	
Defaulted Interest

	 	 	3	 
	 
	 	
Depository

	 	 	4	 
	 
	 	
Event of Default

	 	 	4	 
	 
	 	
Exchange Act

	 	 	4	 
	 
	 	
Global Security

	 	 	4	 
	 
	 	
Holder

	 	 	4	 
	 
	 	
Indenture

	 	 	4	 
	 
	 	
interest

	 	 	4	 
	 
	 	
Interest Payment Date

	 	 	4	 
	 
	 	
Maturity

	 	 	4	 
	 
	 	
Officers’ Certificate

	 	 	4	 
	 
	 	
Opinion of Counsel

	 	 	5	 
	 
	 	
Original Issue Discount Security

	 	 	5	 
	 
	 	
Outstanding

	 	 	5	 
	 
	 	
Paying Agent

	 	 	6	 
	 
	 	
Person

	 	 	6	 

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

-i-

 

	 	 	 	 	 	 	 
	 
	 	
Place of Payment

	 	 	6	 
	 
	 	
Predecessor Security

	 	 	7	 
	 
	 	
Redemption Date

	 	 	7	 
	 
	 	
Redemption Price

	 	 	7	 
	 
	 	
Regular Record Date

	 	 	7	 
	 
	 	
Responsible Officer

	 	 	7	 
	 
	 	
Securities

	 	 	7	 
	 
	 	
Security Register

	 	 	7	 
	 
	 	
Security Registrar

	 	 	7	 
	 
	 	
Special Record Date

	 	 	7	 
	 
	 	
Stated Maturity

	 	 	8	 
	 
	 	
Subsidiary

	 	 	8	 
	 
	 	
Trustee

	 	 	8	 
	 
	 	
Trust Indenture Act

	 	 	8	 
	 
	 	
U.S. Government Obligations

	 	 	8	 
	 
	 	
Vice President

	 	 	8	 
	Section 102.
	 	
Compliance Certificates and Opinions

	 	 	9	 
	Section 103.
	 	
Form of Documents Delivered to Trustee

	 	 	10	 
	Section 104.
	 	
Acts of Holders

	 	 	10	 
	Section 105.
	 	
Notices, Etc., to Trustee and Company

	 	 	11	 
	Section 106.
	 	
Notice to Holders; Waiver

	 	 	12	 
	Section 107.
	 	
Conflict with Trust Indenture Act

	 	 	13	 
	Section 108.
	 	
Effect of Headings and Table of Contents

	 	 	13	 
	Section 109.
	 	
Successors and Assigns

	 	 	13	 
	Section 110.
	 	
Separability Clause

	 	 	13	 
	Section 111.
	 	
Benefits of Indenture

	 	 	13	 
	Section 112.
	 	
Governing Law

	 	 	13	 
	Section 113.
	 	
Legal Holidays

	 	 	13	 
	 
	 
	 	
ARTICLE TWO
	 	 	 	 
	 
	 
	 	
Security Forms
	 	 	 	 
	 
	Section 201.
	 	
Forms Generally

	 	 	14	 
	Section 202.
	 	
Form of Face of Security

	 	 	15	 
	Section 203.
	 	
Form of Reverse of Security

	 	 	17	 
	Section 204.
	 	
Form of Legend for Global Securities

	 	 	22	 
	Section 205.
	 	
Form of Trustee’s Certificate of Authentication

	 	 	22	 
	 
	 
	 	
ARTICLE THREE
	 	 	 	 
	 
	 
	 	
The Securities
	 	 	 	 
	 
	Section 301.
	 	
Amount Unlimited; Issuable in Series

	 	 	23	 

-ii-

 

	 	 	 	 	 	 	 
	Section 302.
	 	
Denominations

	 	 	26	 
	Section 303.
	 	
Execution, Authentication, Delivery and Dating

	 	 	26	 
	Section 304.
	 	
Temporary Securities

	 	 	29	 
	Section 305.
	 	
Registration, Registration of Transfer and Exchange

	 	 	29	 
	Section 306.
	 	
Mutilated, Destroyed, Lost and Stolen Securities

	 	 	31	 
	Section 307.
	 	
Payment of Interest; Interest Rights Preserved

	 	 	33	 
	Section 308.
	 	
Persons Deemed Owners

	 	 	34	 
	Section 309.
	 	
Cancellation

	 	 	35	 
	Section 310.
	 	
Computation of Interest

	 	 	35	 
	 
	 
	 	
ARTICLE FOUR
	 	 	 	 
	 
	 
	 	
Satisfaction and Discharge
	 	 	 	 
	 
	Section 401.
	 	
Satisfaction and Discharge of Indenture

	 	 	35	 
	Section 402.
	 	
Application of Trust Money

	 	 	37	 
	 
	 
	 	
ARTICLE FIVE
	 	 	 	 
	 
	 
	 	
Remedies
	 	 	 	 
	 
	Section 501.
	 	
Events of Default

	 	 	37	 
	Section 502.
	 	
Acceleration of Maturity; Rescission and
Annulment

	 	 	40	 
	Section 503.
	 	
Collection of Indebtedness and Suits for
Enforcement by Trustee

	 	 	42	 
	Section 504.
	 	
Trustee May File Proofs of Claim

	 	 	43	 
	Section 505.
	 	
Trustee May Enforce Claims Without
Possession of Securities

	 	 	45	 
	Section 506.
	 	
Application of Money Collected

	 	 	45	 
	Section 507.
	 	
Limitation on Suits

	 	 	45	 
	Section 508.
	 	
Unconditional Right of Holders to
Receive Principal, Premium and Interest

	 	 	46	 
	Section 509.
	 	
Restoration of Rights and Remedies

	 	 	47	 
	Section 510.
	 	
Rights and Remedies Cumulative

	 	 	47	 
	Section 511.
	 	
Delay or Omission Not Waiver

	 	 	47	 
	Section 512.
	 	
Control by Holders

	 	 	48	 
	Section 513.
	 	
Waiver of Past Defaults

	 	 	49	 
	Section 514.
	 	
Undertaking for Costs

	 	 	50	 
	Section 515.
	 	
Waiver of Stay or Extension Laws

	 	 	50	 

-iii-

 

	 	 	 	 	 	 	 
	 
	 	
ARTICLE SIX
	 	 	 	 
	 
	 
	 	
The Trustee
	 	 	 	 
	 
	Section 601.
	 	
Certain Duties and Responsibilities

	 	 	51	 
	Section 602.
	 	
Notice of Defaults

	 	 	52	 
	Section 603.
	 	
Certain Rights of Trustee

	 	 	53	 
	Section 604.
	 	
Not Responsible for Recitals or Issuance
of Securities

	 	 	55	 
	Section 605.
	 	
May Hold Securities

	 	 	55	 
	Section 606.
	 	
Money Held in Trust

	 	 	55	 
	Section 607.
	 	
Compensation and Reimbursement

	 	 	55	 
	Section 608.
	 	
Disqualification; Conflicting Interests

	 	 	57	 
	Section 609.
	 	
Corporate Trustee Required; Eligibility

	 	 	57	 
	Section 610.
	 	
Resignation and Removal; Appointment of Successor

	 	 	57	 
	Section 611.
	 	
Acceptance of Appointment by Successor

	 	 	60	 
	Section 612.
	 	
Merger, Conversion, Consolidation or Succession
to Business

	 	 	61	 
	Section 613.
	 	
Preferential Collection of Claims Against Company

	 	 	62	 
	Section 614.
	 	
Appointment of Authenticating Agent

	 	 	62	 
	 
	 
	 	
ARTICLE SEVEN
	 	 	 	 
	 
	 
	 	
Holders’ Lists and Reports by Trustee and Company
	 	 	 	 
	 
	Section 701.
	 	
Company to Furnish Trustee Names and Addresses
of Holders

	 	 	64	 
	Section 702.
	 	
Preservation of Information; Communications to
Holders

	 	 	65	 
	Section 703.
	 	
Reports by Trustee

	 	 	66	 
	Section 704.
	 	
Reports by Company

	 	 	67	 
	 
	 
	 	
ARTICLE EIGHT
	 	 	 	 
	 
	 
	 	
Consolidation, Merger, Conveyance, Transfer or Lease
	 	 	 	 
	 
	Section 801.
	 	
Company May Consolidate, Etc., Only on Certain
Terms

	 	 	68	 
	Section 802.
	 	
Successor Person Substituted

	 	 	69	 

-iv-

 

	 	 	 	 	 	 	 
	 
	 	
ARTICLE NINE
	 	 	 	 
	 
	 
	 	
Supplemental Indentures
	 	 	 	 
	 
	Section 901.
	 	
Supplemental Indentures Without Consent of Holders

	 	 	70	 
	Section 902.
	 	
Supplemental Indentures with Consent of Holders

	 	 	71	 
	Section 903.
	 	
Execution of Supplemental Indentures

	 	 	73	 
	Section 904.
	 	
Effect of Supplemental Indentures

	 	 	74	 
	Section 905.
	 	
Conformity with Trust Indenture Act

	 	 	74	 
	Section 906.
	 	
Reference in Securities to Supplemental Indentures

	 	 	74	 
	 
	 
	 	
ARTICLE TEN
	 	 	 	 
	 
	 
	 	
Covenants
	 	 	 	 
	 
	Section 1001.
	 	
Payment of Principal, Premium and Interest

	 	 	74	 
	Section 1002.
	 	
Maintenance of Office or Agency

	 	 	75	 
	Section 1003.
	 	
Money for Securities Payments to Be Held in Trust

	 	 	75	 
	Section 1004.
	 	
Corporate Existence

	 	 	77	 
	Section 1005.
	 	
Limitation on Liens

	 	 	77	 
	Section 1006.
	 	
Statement by Officers as to Default

	 	 	78	 
	Section 1007.
	 	
Waiver of Certain Covenants

	 	 	78	 
	 
	 
	 	
ARTICLE ELEVEN
	 	 	 	 
	 
	 
	 	
Redemption of Securities
	 	 	 	 
	 
	Section 1101.
	 	
Applicability of Article

	 	 	79	 
	Section 1102.
	 	
Election to Redeem; Notice to Trustee

	 	 	80	 
	Section 1103.
	 	
Selection by Trustee of Securities to Be Redeemed

	 	 	80	 
	Section 1104.
	 	
Notice of Redemption

	 	 	81	 
	Section 1105.
	 	
Deposit of Redemption Price

	 	 	81	 
	Section 1106.
	 	
Securities Payable on Redemption Date

	 	 	82	 
	Section 1107.
	 	
Securities Redeemed in Part

	 	 	82	 
	 
	 
	 	
ARTICLE TWELVE
	 	 	 	 
	 
	 
	 	
Sinking Funds
	 	 	 	 
	 
	Section 1201.
	 	
Applicability of Article

	 	 	83	 

-v-

 

	 	 	 	 	 	 	 
	Section 1202.
	 	
Satisfaction of Sinking Fund Payments with
Securities

	 	 	83	 
	Section 1203.
	 	
Redemption of Securities for Sinking Fund

	 	 	84	 
	 
	 
	 	
ARTICLE THIRTEEN
	 	 	 	 
	 
	 
	 	
Defeasance and Covenant Defeasance
	 	 	 	 
	 
	Section 1301.
	 	
Applicability of Article; Company’s Option to
Effect Defeasance or Covenant Defeasance

	 	 	84	 
	Section 1302.
	 	
Defeasance and Discharge

	 	 	85	 
	Section 1303.
	 	
Covenant Defeasance

	 	 	85	 
	Section 1304.
	 	
Conditions to Defeasance or Covenant Defeasance

	 	 	86	 
	Section 1305.
	 	
Deposited Money and U.S. Government Obligations
to be Held in Trust; Other Miscellaneous
Provisions

	 	 	89	 
	Section 1306.
	 	
Reinstatement

	 	 	90	 

-vi-

 

     INDENTURE, dated as of March 12, 2002, between The St. Paul Companies,
Inc., a corporation duly organized and existing under the laws of the State of
Minnesota (herein called the “Company”), having its principal office at 385
Washington Street, St. Paul, Minnesota 55102, and JPMorgan Chase Bank, a New
York banking corporation duly organized and existing under the laws of the
State of New York, as Trustee (herein called the “Trustee”).

RECITALS OF THE COMPANY

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

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

     NOW, THEREFORE, THIS INDENTURE WITNESSETH:

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

ARTICLE ONE

Definitions and Other Provisions

of General Application

Section 101. Definitions.

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

	     	
	 	     (1) the terms defined in this Article have the meanings
assigned to them in this Article and include the plural as well as
the singular;
	 
	 	     (2) all other terms used herein which are defined in the
Trust Indenture Act, either

 

 

	     	
	 	directly or by reference therein, have the meanings assigned
to them therein;
	 
	 	     (3) all accounting terms not otherwise defined herein have
the meanings assigned to them in accordance with generally
accepted accounting principles, and, except as otherwise herein
expressly provided, the term “generally accepted accounting
principles” with respect to any computation required or permitted
hereunder shall mean such accounting principles as are generally
accepted at the date of such computation; and
	 
	 	     (4) the words “herein”, “hereof” and “hereunder” and other
words of similar import refer to this Indenture as a whole and not
to any particular Article, Section or other subdivision.

     Certain terms, used principally in Article Six, are defined in that
Article.

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

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

     “Authenticating Agent” means any Authenticating Agent appointed pursuant
to Section 614 to authenticate Securities.

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

     “Board Resolution” means a copy of a resolution certified by the Corporate
Secretary or an Assistant Corporate Secretary of the Company to have been duly

-2-

 

adopted by the Board of Directors and to be in full force and effect on
the date of such certification, and delivered to the Trustee.

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

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

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

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

     “Corporate Trust Office” means the principal office of the Trustee in The
City of New York, at which at any particular time its corporate trust business
in such City may be administered. At the date hereof, such office is located
at JPMorgan Chase Bank, 450 West 33rd Street, New York, New York 10001,
Attention: Institutional Trust Services.

     “corporation” includes corporations, associations, companies and business
trusts.

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

-3-

 

     “Depository” means, with respect to the Securities of any series issuable
or issued in whole or in part in the form of one or more Global Securities, the
clearing agency registered under the Exchange Act specified for that purpose as
contemplated by Section 301.

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

     “Exchange Act” means the Securities Exchange Act of 1934 as it may be
amended and any successor act thereto.

     “Global Security” means a security bearing the legend specified in Section
204 evidencing all or part of a series of Securities, authenticated and
delivered to the Depository for such series or its nominee, and registered in
the name of such Depository or nominee.

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

     “Indenture” means this instrument as originally executed or as it may from
time to time be supplemented or amended by one or more indentures supplemental
hereto entered into pursuant to the applicable provisions hereof and shall
include the terms of particular series of Securities established as
contemplated by Section 301.

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

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

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

     “Officers’ Certificate” means a certificate signed by the Chairman of the
Board, the President or a Vice President, and by the Treasurer, an Assistant

-4-

 

Treasurer, the Secretary or an Assistant Secretary, of the Company, and
delivered to the Trustee. One of the officers signing an Officers’ Certificate
given pursuant to Section 1005 shall be the principal executive, financial or
accounting officer of the Company.

     “Opinion of Counsel” means a written opinion of counsel, who may be
counsel for the Company.

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

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

	     	
	 	     (i) Securities theretofore cancelled by the Trustee or
delivered to the Trustee for cancellation;
	 
	 	     (ii) Securities for whose payment or redemption money in the
necessary amount has been theretofore deposited with the Trustee
or any Paying Agent (other than the Company) in trust or set aside
and segregated in trust by the Company (if the Company shall act
as its own Paying Agent) for the Holders of such Securities;
provided that, if such Securities are to be redeemed, notice of
such redemption has been duly given pursuant to this Indenture or
provision therefor satisfactory to the Trustee has been made; and
	 
	 	     (iii) Securities which have been paid pursuant to Section
306 or in exchange for or in lieu of which other Securities have
been authenticated and delivered pursuant to this Indenture, other
than any such Securities in respect of which there shall have been
presented to the Trustee proof satisfactory to it that such
Securities are held by a protected purchaser in

-5-

 

	     	
	 	whose hands such Securities are valid obligations of the
Company;

provided, however, that in determining whether the Holders of the requisite
principal amount of the Outstanding Securities have given any request, demand,
authorization, direction, notice, consent or waiver hereunder, (i) the
principal amount of an Original Issue Discount Security that shall be deemed to
be Outstanding shall be the amount of the principal thereof that would be due
and payable as of the date of such determination upon acceleration of the
Maturity thereof pursuant to Section 502, (ii) the principal amount of a
Security denominated in a foreign currency or currencies shall be the U.S.
dollar equivalent, determined on the date of original issuance of such
Security, of the principal amount (or, in the case of an Original Issue
Discount Security, the U.S. dollar equivalent on the date of original issuance
of such Security of the amount determined as provided in (i) above) of such
Security, and (iii) Securities owned by the Company or any other obligor upon
the Securities or any Affiliate of the Company or of such other obligor shall
be disregarded and deemed not to be Outstanding, except that, in determining
whether the Trustee shall be protected in relying upon any such request,
demand, authorization, direction, notice, consent or waiver, only Securities
which the Trustee knows to be so owned shall be so disregarded. Securities so
owned which have been pledged in good faith may be regarded as outstanding if
the pledgee establishes to the satisfaction of the Trustee the pledgee’s right
so to act with respect to such Securities and that the pledgee is not the
Company or any other obligor upon the Securities or any Affiliate of the
Company or of such other obligor.

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

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

     “Place of Payment”, when used with respect to the Securities of any
series, means the place or places where

-6-

 

the principal of (and premium, if any) and interest on the Securities of
that series are payable as specified as contemplated by Section 301.

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

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

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

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

     “Responsible Officer”, when used with respect to the Trustee, means any
officer of the Trustee with direct responsibility for the administration of
this Indenture and also means, with respect to a particular corporate trust
matter, any other officer of the Trustee to whom such matter is referred
because of his knowledge of and familiarity with the particular subject.

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

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

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

-7-

 

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

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

     “Trustee” means the Person named as the “Trustee” in the first paragraph
of this instrument until a successor Trustee shall have become such pursuant to
the applicable provisions of this Indenture, and thereafter “Trustee” shall
mean or include each Person who is then a Trustee hereunder, and if at any time
there is more than one such Person, “Trustee” as used with respect to the
Securities of any series shall mean the Trustee with respect to Securities of
that series.

     “Trust Indenture Act” means the Trust Indenture Act of 1939 as in force at
the date as of which this instrument was executed, except as provided in
Section 905; provided, however, that in the event the Trust Indenture Act of
1939 is amended after such date, “Trust Indenture Act” means, to the extent
required by such amendment, the Trust Indenture Act of 1939 as amended.

     “U.S. Government Obligations” has the meaning specified in Section 1304.

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

-8-

 

Section 102. Compliance Certificates and Opinions.

     Except as otherwise expressly provided by this Indenture, upon any
application or request by the Company to the Trustee to take any action under
any provision of this Indenture, the Company shall furnish to the Trustee an
Officers’ Certificate stating that all conditions precedent, if any, provided
for in this Indenture relating to the proposed action have been complied with
and an Opinion of Counsel stating that in the opinion of such counsel such
action is authorized or permitted by this Indenture and that all such
conditions precedent, if any, have been complied with, except that in the case
of any such application or request as to which the furnishing of such documents
is specifically required by any provision of this Indenture relating to such
particular application or request, no additional certificate or opinion need be
furnished.

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

	     	
	 	     (1) a statement that each individual signing such certificate
or opinion has read such covenant or condition and the definitions
herein relating thereto;
	 
	 	     (2) a brief statement as to the nature and scope of the
examination or investigation upon which the statements or opinions
contained in such certificate or opinion are based;
	 
	 	     (3) a statement that, in the opinion of each such individual,
he has made such examination or investigation as is necessary to
enable him to express an informed opinion as to whether or not
such covenant or condition has been complied with; and
	 
	 	     (4) a statement as to whether, in the opinion of each such
individual, such condition or covenant has been complied with.

-9-

 

Section 103. Form of Documents Delivered to Trustee.

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

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

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

Section 104. Acts of Holders.

     (a)  Any request, demand, authorization, direction, notice, consent, waiver
or other action provided by this Indenture to be given or taken by Holders may
be embodied in and evidenced by one or more instruments of substantially
similar tenor signed by such Holders in person or by agent duly appointed in
writing; and, except as herein otherwise expressly provided, such action shall
become effective when such instrument or instruments are

-10-

 

delivered to the Trustee and, where it is hereby expressly required, to
the Company. Such instrument or instruments (and the action embodied therein
and evidenced thereby) are herein sometimes referred to as the “Act” of the
Holders signing such instrument or instruments. Proof of execution of any such
instrument or of a writing appointing any such agent shall be sufficient for
any purpose of this Indenture and (subject to Section 601) conclusive in favor
of the Trustee and the Company, if made in the manner provided in this Section.

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

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

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

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

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

-11-

 

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

Section 106. Notice to Holders; Waiver.

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

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

-12-

 

Section 107. Conflict with Trust Indenture Act.

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

Section 108. Effect of Headings and Table of Contents.

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

Section 109. Successors and Assigns.

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

Section 110. Separability Clause.

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

Section 111. Benefits of Indenture.

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

Section 112. Governing Law.

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

Section 113. Legal Holidays.

     In any case where any Interest Payment Date, Redemption Date or Stated
Maturity of any Security shall not be a Business Day at any Place of Payment,
then

-13-

 

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

ARTICLE TWO

Security Forms

Section 201. Forms Generally.

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

     The Trustee’s certificates of authentication shall be in substantially the
form set forth in this Article.

     The definitive Securities shall be printed, lithographed or engraved on
steel engraved borders or may be produced in any other manner, all as
determined by the

-14-

 

officers executing such Securities, as evidenced by their execution of
such Securities.

Section 202. Form of Face of Security.

     [Insert any legend required by the Internal Revenue Code and the
regulations thereunder.]

The St. Paul Companies, Inc.

......................................................................................

	 	 	 	 	 
	No.  .................
	 	 	
$  .................	 

     The St. Paul Companies, Inc., a corporation duly organized and existing
under the laws of the State of Minnesota (herein called the “Company”, which
term includes any successor corporation under the Indenture hereinafter
referred to), for value received, hereby promises to pay to
     ............................................ or registered assigns, the
principal sum of ....................... Dollars on
     ..................................... ............... [If the Security is to
bear interest prior to Maturity, insert — , and to pay interest thereon from
     .......... or from the most recent Interest Payment Date to which interest has
been paid or duly provided for, semi-annually on ................ and
     ............... in each year, commencing ..........., at the rate of ...% per
annum, until the principal hereof is paid or made available for payment [If
applicable insert — , provided that any principal and premium, and any such
installment of interest, which is overdue shall bear interest at the rate of
     ...% per annum (to the extent that the payment of such interest shall be
legally enforceable), from the dates such amounts are due until they are paid
or made available for payment, and such interest shall be payable on demand].
The interest so payable, and punctually paid or duly provided for, on any
Interest Payment Date will, as provided in such Indenture, be paid to the
Person in whose name this Security (or one or more Predecessor Securities) is
registered at the close of business on the Regular Record Date for such
interest, which shall be the ...... or ....... (whether or not a Business Day),
as the case may be, next preceding such Interest Payment Date. Any such
interest not so punctually paid or duly provided for will forthwith cease to be
payable to the Holder on such Regular

-15-

 

Record Date and may either be paid to the Person in whose name this
Security (or one or more Predecessor Securities) is registered at the close of
business on a Special Record Date for the payment of such Defaulted Interest to
be fixed by the Trustee, notice whereof shall be given to Holders of Securities
of this series not less than 10 days prior to such Special Record Date, or be
paid at any time in any other lawful manner not inconsistent with the
requirements of any securities exchange on which the Securities of this series
may be listed, and upon such notice as may be required by such exchange, all as
more fully provided in said Indenture]. [If the Security is not to bear
interest prior to Maturity, insert — The principal of this Security shall not
bear interest except in the case of a default in payment of principal upon
acceleration, upon redemption or at Stated Maturity and in such case the
overdue principal and any overdue premium shall bear interest at the rate of
     ...% per annum (to the extent that the payment of such interest shall be
legally enforceable), from the dates such amounts are due until they are paid
or made available for payment. Interest on any overdue principal or premium
shall be payable on demand. [Any such interest on overdue principal or premium
which is not paid on demand shall bear interest at the rate of ......% per
annum (to the extent that the payment of such interest on interest shall be
legally enforceable), from the date of such demand until the amount so demanded
is paid or made available for payment. Interest on any overdue interest shall
be payable on demand.]

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

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

-16-

 

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

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

Dated: ..........

THE ST. PAUL COMPANIES, INC.

By ....................

Attest:

.......................

Section 203. Form of Reverse of Security.

     This Security is one of a duly authorized issue of securities of the
Company (herein called the “Securities”), issued and to be issued in one or
more series under an Indenture, dated as of —  herein called the “Indenture”,
which term shall have the meaning assigned to it in such instrument), between
the Company and JPMorgan Chase Bank, 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 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 [if applicable, insert — ,
limited in aggregate principal amount to $...........].

     [If applicable, insert — The Securities of this series are subject to
redemption upon not more than 60 or less than 30 days’ notice by mail, [if
applicable, insert — (1) on ......... in any year commencing with the year
     ..... and ending with the year ...... through operation of the sinking fund for
this series at a Redemption Price equal to 100% of the principal amount, and
(2)] at any time [on or after .........., 20..], as a whole or in part, at

-17-

 

the election of the Company, at the following Redemption Prices (expressed
as percentages of the principal amount): If redeemed [on or before
     .............,           %, and if redeemed] during the 12-month period beginning
     ....... of the years indicated.

	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	Redemption	 	 	 	 	 	Redemption
	 	 	Year	 	 	Price	 	 	Year	 	 	Price
	 	 	
	 	 	
	 	 	
	 	 	

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

     [If applicable, insert — The Securities of this series are subject to
redemption upon not more than 60 or less than 30 days’ notice by mail, (1) on
     ............ in any year commencing with the year .... and ending with the year
     .... through operation of the sinking fund for this series at the Redemption
Prices for redemption through operation of the sinking fund (expressed as
percentages of the principal amount) set forth in the table below, and (2) at
any time [on or after ..........., as a whole or in part, at the election of
the Company, at the Redemption Prices for redemption otherwise than through
operation of the sinking fund (expressed as percentages of the principal
amount) set forth in the table below: If redeemed during the 12-month period
beginning ............ of the years indicated,

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

-18-

 

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

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

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

     In the event of redemption of this Security in part only, a new Security
or Securities of this series and of a like tenor for the unredeemed portion
hereof will be

-19-

 

issued in the name of the Holder hereof upon the cancellation hereof.

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

     [If the Security is an Original Issue Discount Security, — If an Event of
Default with respect to Securities of this series shall occur and be
continuing, an amount of principal of the Securities of this series may be
declared due and payable in the manner and with the effect provided in the
Indenture. Such amount shall be equal to — insert formula for determining the
amount. Upon payment (i) of the amount of principal so declared due and
payable and (ii) of interest on any overdue principal, premium and overdue
interest (in each case to the extent that the payment of such interest shall be
legally enforceable), all of the Company’s obligations in respect of the
payment of the principal of and premium and interest, if any, on the Securities
of this series shall terminate.]

     [The Indenture contains provisions for defeasance at any time of [the
entire indebtedness of this Security or] [certain restrictive covenants and
Events of Default with respect to this Security] [, in each case] upon
compliance with certain conditions set forth therein.]

     The Indenture permits, with certain exceptions as therein provided, the
amendment thereof and the modification of the rights and obligations of the
Company and the rights of the Holders of the Securities of each series to be
affected under the Indenture at any time by the Company and the Trustee with
the consent of the majority of the Holders in principal amount of the
Securities at the time Outstanding of each series to be affected. The
Indenture also contains provisions permitting the Holders of specified
percentages in principal amount of the Securities of each series at the time
Outstanding, on behalf of the Holders of all Securities of such series, to
waive compliance by the Company with certain provisions of the Indenture and
certain past defaults under the Indenture and their

-20-

 

consequences. Any such consent or waiver by the Holder of this Security
shall be conclusive and binding upon such Holder and upon all future Holders of
this Security and of any Security issued upon the registration of transfer
hereof or in exchange herefor or in lieu hereof, whether or not notation of
such consent or waiver is made upon this Security.

     No reference herein to the Indenture and no provision of this Security or
of the Indenture shall alter or impair the obligation of the Company, which is
absolute and unconditional, to pay the principal of and any premium, and
interest on this Security at the times, place and rate, and in the coin or
currency, herein prescribed.

     As provided in the Indenture and subject to certain limitations therein
set forth, the transfer of this Security is registrable in the Security
Register, upon surrender of this Security for registration of transfer at the
office or agency of the Company in any place where the principal of and 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 $........ and any integral multiple 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.

-21-

 

     Prior to due presentment of this Security for registration of transfer,
the Company, the Trustee and any agent of the Company or the Trustee may treat
the Person in whose name this Security is registered as the owner hereof for
all purposes, whether or not this Security be overdue, and neither the Company,
the Trustee nor any such agent shall be affected by notice to the contrary.

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

Section 204. Form of Legend for Global Securities.

     Any Global Security authenticated and delivered hereunder shall bear a
legend in substantially the following form:

	     	
	 	     “This Security is a Global Security within the meaning of the
Indenture hereinafter referred to and is registered in the name of a
Depository or a nominee 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 Depository or a nominee thereof, except in the limited
circumstances described in the Indenture.”

Section 205. Form of Trustee’s Certificate of Authentication.

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

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

	 	 	 
	 	 	
JPMORGAN CHASE BANK,

as Trustee
	 
	 	 	
By ....................

Authorized Officer

-22-

 

ARTICLE THREE

The Securities

Section 301. Amount Unlimited; Issuable in Series.

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

     The Securities may be issued in one or more series. There shall be
established in or pursuant to a Board Resolution and, subject to Section 303,
set forth, or determined in the manner provided, in an Officers’ Certificate,
or established in one or more indentures supplemental hereto, prior to the
issuance of Securities of any series,

	     	
	 	     (1) the title of the Securities of the series (which shall
distinguish the Securities of the series from Securities of any
other series);
	 
	 	     (2) any limit upon the aggregate principal amount of the
Securities of the series which may be authenticated and delivered
under this Indenture (except for Securities authenticated and
delivered upon registration of transfer of, or in exchange for, or
in lieu of, other Securities of the series pursuant to Section
304, 305, 306, 906 or 1107 and except for any Securities which,
pursuant to Section 303, are deemed never to have been
authenticated and delivered hereunder);
	 
	 	     (3) the Person to whom any interest on a Security of the
series shall be payable, if other than the Person in whose name
that Security (or one or more Predecessor Securities) is
registered at the close of business on the Regular Record Date for
such interest;
	 
	 	     (4) the date or dates on which the principal of the
Securities of the series is payable;

-23-

 

	     	
	 	     (5) the rate or rates at which the Securities of the series
shall bear interest, if any, the date or dates from which such
interest shall accrue, the Interest Payment Dates on which such
interest shall be payable and the Regular Record Date for the
interest payable on any Interest Payment Date;
	 
	 	     (6) the place or places where the principal of (and premium,
if any) and interest on Securities of the series shall be payable;
	 
	 	     (7) the period or periods within which, the price or prices
at which, and the terms and conditions upon which, Securities of
the series may be redeemed, in whole or in part, at the option of
the Company;
	 
	 	     (8) the obligation, if any, of the Company to redeem or
purchase Securities of the series pursuant to any sinking fund or
analogous provisions or at the option of a Holder thereof and the
period or periods within which, the price or prices at which and
the terms and conditions upon which, Securities of the series
shall be redeemed or purchased, in whole or in part, pursuant to
such obligation;
	 
	 	     (9) any provisions necessary to permit or facilitate the
issuance, payment or conversion of any Securities of the series
that may be converted into securities or other property other than
Securities of the same series (including shares of the Company’s
common or preferred stock or other Securities of the Company) and
of like tenor, whether in addition to, or in lieu of, any payment
of principal or other amount and whether at the option of the
Company or otherwise;
	 
	 	     (10) if other than denominations of $1,000 and any integral
multiple thereof, the denominations in which Securities of the
series shall be issuable;
	 
	 	     (11) the currency or currencies, including composite
currencies, in which payment of the

-24-

 

	     	
	 	principal of and any premium and interest on the Securities
of the series shall be payable if other than the currency of the
United States of America;
	 
	 	     (12) if the principal of or any premium or interest on any
Securities of the series is to be payable, at the election of the
Company or the Holder thereof, in one or more currencies,
composite currencies or currency units other than that or those in
which such Securities are stated to be payable, the currency,
currencies, composite currency, composite currencies or currency
units in which the principal of or any premium or interest on such
Securities as to which such election is made shall be payable, the
periods within which and the terms and conditions upon which such
election is to be made and the amount so payable (or the manner in
which such amount shall be determined);
	 
	 	     (13) if the amount of payments of principal of and any
premium or interest on the Securities of the series may be
determined with reference to an index, a formula or any other
method, the manner in which such amounts shall be determined;
	 
	 	     (14) whether the Securities of the series shall be issued in
whole or in part in the form of one or more Global Securities and,
in such case, the Depository with respect to such Global Security
or Securities and the circumstances under which any such Global
Security may be exchanged for Securities registered in the name
of, and any transfer of such Global Security may be registered in
the name of, a Person other than such Depository or its nominee,
if other than as set forth in Section 305;
	 
	 	     (15) if other than the principal amount thereof, the portion
of the principal amount of Securities of the series which shall be
payable upon declaration of acceleration of the Maturity thereof
pursuant to Section 502;

-25-

 

	     	
	 	     (16) the application, if any, of Section 1302 or 1303 to the
Securities of any series;
	 
	 	     (17) any proposed listing on any national or foreign
securities exchange of the Securities of the series; and
	 
	 	     (18) any other terms of the series (which terms shall not be
inconsistent with the provisions of this Indenture).

     All Securities of any one series shall be substantially identical except
as to denomination and except as may otherwise be provided in or pursuant to
the Board Resolution referred to above and (subject to Section 303) set forth
in the Officers’ Certificate or in any such indenture supplemental hereto.

     If any of the terms of the series are established by action taken pursuant
to a Board Resolution, a copy of an appropriate record of such action shall be
certified by the Secretary or an Assistant Secretary of the Company and
delivered to the Trustee at or prior to the delivery of the Officers’
Certificate setting forth the terms of the series.

Section 302. Denominations.

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

Section 303. Execution, Authentication, Delivery and Dating.

     The Securities shall be executed on behalf of the Company by its Chairman
of the Board, its President or one of its Vice Presidents. The signature of
any of these officers on the Securities may be manual or facsimile.

     Securities bearing the manual or facsimile signatures of individuals who
were at any time the proper

-26-

 

officers of the Company shall bind the Company, notwithstanding that such
individuals or any of them have ceased to hold such offices prior to the
authentication and delivery of such Securities or did not hold such offices at
the date of such Securities.

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

	     	
	 	     (a) if the form of such Securities has been established by or
pursuant to Board Resolution as permitted by Section 201, that
such form has been established in conformity with the provisions
of this Indenture;
	 
	 	     (b) if the terms of such Securities have been established by
or pursuant to Board Resolution as permitted by Section 301, that
such terms have been established in conformity with the provisions
of this Indenture; and
	 
	 	     (c) that such Securities, when authenticated and delivered by
the Trustee and issued by the Company in the manner and subject to
any conditions specified in such Opinion of Counsel, will
constitute valid and legally binding obligations of the Company,
enforceable in accordance with their terms, subject to bankruptcy,
insolvency, fraudulent transfer, reorganization, moratorium and
similar laws of general applicability relating to or affecting the
enforcement of creditors’ rights and to general equity principles.

-27-

 

If such form or terms have been so established, the Trustee shall not be
required to authenticate such Securities if the issue of such Securities
pursuant to this Indenture will affect the Trustee’s own rights, duties or
immunities under the Securities and this Indenture or otherwise in a manner
which is not reasonably acceptable to the Trustee.

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

     Each Security shall be dated the date of its authentication.

     No Security shall be entitled to any benefit under this Indenture or be
valid or obligatory for any purpose unless there appears on such Security a
certificate of authentication substantially in the form provided for herein
executed by the Trustee by manual signature, and such certificate upon any
Security shall be conclusive evidence, and the only evidence, that such
Security has been duly authenticated and delivered hereunder and is entitled to
the benefits of this Indenture. Notwithstanding the foregoing, if any Security
shall have been authenticated and delivered hereunder but never issued and sold
by the Company, and the Company shall deliver such Security to the Trustee for
cancellation as provided in Section 309 together with a written statement
(which need not comply with Section 102 and need not be accompanied by an
Opinion of Counsel) stating that such Security has never been issued and sold
by the Company, for all purposes of this Indenture such Security shall be
deemed never to have been authenticated and delivered hereunder and shall never
be entitled to the benefits of this Indenture.

-28-

 

Section 304. Temporary Securities.

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

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

Section 305. Registration, Registration of Transfer and Exchange.

     The Company shall cause to be kept at the Corporate Trust Office of the
Trustee a register (the register maintained in such office and in any other
office or agency of the Company in a Place of Payment being herein sometimes
collectively referred to as the “Security Register”) in which, subject to such
reasonable regulations as it may prescribe, the Company shall provide for the
registration of Securities and of transfers of Securities. The Trustee is
hereby appointed “Security Registrar” for

-29-

 

the purpose of registering Securities and transfers of Securities as
herein provided.

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

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

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

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

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

-30-

 

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

     Notwithstanding the foregoing, no Global Security shall be registered for
transfer or exchange, or authenticated or delivered, pursuant to this Section
305 or Sections 304, 306, 906 or 1107 in the name of a Person other than the
Depository for such Security or its nominee until (i) the Depository with
respect to a Global Security notifies the Company that it is unwilling or
unable to continue as Depository for such Global Security or the Depository
ceases to be a clearing agency registered under the Exchange Act, (ii) the
Company executes and delivers to the Trustee a Company Order that such Global
Security shall be so transferable and exchangeable or (iii) there shall have
occurred and be continuing an Event of Default with respect to the Securities
of such series. Upon the occurrence in respect of any Global Security of any
series of any one or more of the conditions specified in clauses (i), (ii) or
(iii) of the preceding sentence or such other conditions as may be specified as
contemplated by Section 301 for such series, such Global Security may be
registered for transfer or exchange for Securities registered in the names of,
or authenticated and delivered to, such Persons as the Depository with respect
to such series shall direct.

     Except as provided in the preceding paragraph, any Security authenticated
and delivered upon registration of transfer of, or in exchange for, or in lieu
of, any Global Security, whether pursuant to this Section, Section 304, 306,
906 or 1107 or otherwise, shall also be a Global Security and bear the legend
specified in Section 204.

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

     If any mutilated Security is surrendered to the Trustee, the Company shall
execute and the Trustee shall

-31-

 

authenticate and deliver in exchange thereof or a new Security of the same
series and of like tenor and principal amount and bearing a number not
contemporaneously outstanding.

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

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

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

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

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

-32-

 

Section 307. Payment of Interest; Interest Rights Preserved.

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

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

	     	
	 	     (1) The Company may elect to make payment of any Defaulted
Interest to the Persons in whose names the Securities of such
series (or their respective Predecessor Securities) are registered
at the close of business on a Special Record Date for the payment
of such Defaulted Interest, which shall be fixed in the following
manner. The Company shall notify the Trustee in writing of the
amount of Defaulted Interest proposed to be paid on each Security
of such series and the date of the proposed payment, and at the
same time the Company shall deposit with the Trustee an amount of
money equal to the aggregate amount proposed to be paid in respect
of such Defaulted Interest or shall make arrangements satisfactory
to the Trustee for such deposit prior to the date of the proposed
payment, such money when deposited to be held in trust for the
benefit of the Persons entitled to such Defaulted Interest as in
this Clause provided. Thereupon the Trustee shall fix a Special
Record Date for the payment of such Defaulted Interest which shall
be not more than 15 days and not less than 10 days prior to the
date of the proposed payment and not less than 10 days after the
receipt by the Trustee of the

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	 	notice of the proposed payment. The Trustee shall promptly
notify the Company of such Special Record Date and, in the name
and at the expense of the Company, shall cause notice of the
proposed payment of such Defaulted Interest and the Special Record
Date therefor to be mailed, first-class postage prepaid, to each
Holder of Securities of such series at his address as it appears
in the Security Register, not less than 10 days prior to such
Special Record Date. Notice of the proposed payment of such
Defaulted Interest and the Special Record Date therefor having
been so mailed, such Defaulted Interest shall be paid to the
Persons in whose names the Securities of such series (or their
respective Predecessor Securities) are registered at the close of
business on such Special Record Date and shall no longer be
payable pursuant to the following Clause (2).
	 
	 	     (2) The Company may make payment of any Defaulted Interest on
the Securities of any series in any other lawful manner not
inconsistent with the requirements of any securities exchange on
which such Securities may be listed, and upon such notice as may
be required by such exchange, if, after notice given by the
Company to the Trustee of the proposed payment pursuant to this
Clause, such manner of payment shall be deemed practicable by the
Trustee.

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

Section 308. Persons Deemed Owners.

     Prior to due presentment of a Security for registration of transfer, the
Company, the Trustee and any agent of the Company or the Trustee may treat the
Person in whose name such Security is registered as the owner of such Security
for the purpose of receiving payment of principal

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of (and premium, if any) and (subject to Section 307) interest on such
Security and for all other purposes whatsoever, whether or not such Security be
overdue, and neither the Company, the Trustee nor any agent of the Company or
the Trustee shall be affected by notice to the contrary.

Section 309. Cancellation.

     All Securities surrendered for payment, redemption, registration of
transfer or exchange or for credit against any sinking fund payment shall, if
surrendered to any Person other than the Trustee, be delivered to the Trustee
and shall be promptly cancelled by it. The Company may at any time deliver to
the Trustee for cancellation any Securities previously authenticated and
delivered hereunder which the Company may have acquired in any manner
whatsoever, and may deliver to the Trustee (or to any other Person for delivery
to the Trustee) for cancellation any Securities previously authenticated
hereunder which the Company has not issued and sold, and all Securities so
delivered shall be promptly cancelled by the Trustee. No Securities shall be
authenticated in lieu of or in exchange for any Securities cancelled as
provided in this Section, except as expressly permitted by this Indenture. All
cancelled Securities held by the Trustee shall be disposed of in accordance
with its normal procedures unless otherwise directed by a Company Order.

Section 310. Computation of Interest.

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

ARTICLE FOUR

Satisfaction and Discharge

Section 401. Satisfaction and Discharge of Indenture.

     This Indenture shall upon Company Request cease to be of further effect
(except as to any surviving rights of registration of transfer or exchange of
Securities herein expressly provided for), and the Trustee, at the

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expense of the Company, shall execute proper instruments acknowledging
satisfaction and discharge of this Indenture, when

	     	
	 	     (1) either

	          	
	 	     (A) all Securities theretofore authenticated and
delivered (other than (i) Securities which have been
destroyed, lost or stolen and which have been replaced or
paid as provided in Section 306 and (ii) Securities for
whose payment money has theretofore been deposited in trust
or segregated and held in trust by the Company and
thereafter repaid to the Company or discharged from such
trust, as provided in Section 1003) have been delivered to
the Trustee for cancellation; or
	 
	 	     (B) all such Securities not theretofore delivered to
the Trustee for cancellation

	               	
	 	     (i) have become due and payable, or
	 
	 	     (ii) will become due and payable at their
Stated Maturity within one year, or
	 
	 	     (iii) are to be called for redemption within
one year under arrangements satisfactory to the
Trustee for the giving of notice of redemption by
the Trustee in the name, and at the expense, of the
Company,

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

-36-

 

	          	
	 	Securities which have become due and payable) or to the
Stated Maturity or Redemption Date, as the case may be;

	     	
	 	     (2) the Company has paid or caused to be paid all other sums
payable hereunder by the Company; and
	 
	 	     (3) the Company has delivered to the Trustee an Officers’
Certificate and an Opinion of Counsel, each stating that all
conditions precedent herein provided for relating to the
satisfaction and discharge of this Indenture have been complied
with.

     Notwithstanding the satisfaction and discharge of this Indenture, the
obligations of the Company to the Trustee under Section 607, the obligations of
the Trustee to any Authenticating Agent under Section 614 and, if money shall
have been deposited with the Trustee pursuant to subclause (B) of clause (1) of
this Section, the obligations of the Trustee under Section 402 and the last
paragraph of Section 1003 shall survive.

Section 402. Application of Trust Money.

     Subject to provisions of the last paragraph of Section 1003, all money
deposited with the Trustee pursuant to Section 401 shall be held in trust and
applied by it, in accordance with the provisions of the Securities and this
Indenture, to the payment, either directly or through any Paying Agent
(including the Company acting as its own Paying Agent) as the Trustee may
determine, to the Persons entitled thereto, of the principal (and premium, if
any) and interest for whose payment such money has been deposited with the
Trustee.

ARTICLE FIVE

Remedies

Section 501. Events of Default.

     “Event of Default”, wherever used herein with respect to Securities of any
series, means any one of the following events (whatever the reason for such
Event of

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Default and whether it shall be voluntary or involuntary or be effected by
operation of law or pursuant to any judgment, decree or order of any court or
any order, rule or regulation of any administrative or governmental body):

	     	
	 	     (1) default in the payment of any interest upon any Security
of that series when it becomes due and payable, and continuance of
such default for a period of 30 days; or
	 
	 	     (2) default in the payment of the principal of (or premium,
if any, on) any Security of that series at its Maturity; or
	 
	 	     (3) default in the deposit of any sinking fund payment, when
and as due by the terms of a Security of that series; or
	 
	 	     (4) default in the performance, or breach, of any covenant or
warranty of the Company in this Indenture (other than a covenant
or warranty a default in whose performance or whose breach is
elsewhere in this Section specifically dealt with or which has
expressly been included in this Indenture solely for the benefit
of a series of Securities other than that series), and continuance
of such default or breach for a period of 90 days after there has
been given, by registered or certified mail, to the Company by the
Trustee or to the Company and the Trustee by the Holders of at
least 25% in principal amount of the Outstanding Securities of
that series a written notice specifying such default or breach and
requiring it to be remedied and stating that such notice is a
“Notice of Default” hereunder; or
	 
	 	     (5) the entry by a court having jurisdiction in the premises
of (A) a decree or order for relief in respect of the Company in
an involuntary case or proceeding under any applicable Federal or
State bankruptcy, insolvency, reorganization or other similar law
or (B) a decree or order adjudging the Company a bankrupt or
insolvent, or approving as properly filed a petition seeking
reorganization,

-38-

 

	     	
	 	arrangement, adjustment or composition of or in respect of
the Company under any applicable Federal or State law, or
appointing a custodian, receiver, liquidator, assignee, trustee,
sequestrator or other similar official of the Company or of any
substantial part of its property, or ordering the winding up or
liquidation of its affairs, and the continuance of any such decree
or order for relief or any such other decree or order unstayed and
in effect for a period of 90 consecutive days; or
	 
	 	     (6) the commencement by the Company of a voluntary case or
proceeding under any applicable Federal or State bankruptcy,
insolvency, reorganization or other similar law or of any other
case or proceeding to be adjudicated a bankrupt or insolvent, or
the consent by it to the entry of a decree or order for relief in
respect of the Company in an involuntary case or proceeding under
any applicable Federal or State bankruptcy, insolvency,
reorganization or other similar law or to the commencement of any
bankruptcy or insolvency case or proceeding against it, or the
filing by it of a petition or answer or consent seeking
reorganization or relief under any applicable Federal or State
law, or the consent by it to the filing of such petition or to the
appointment of or taking possession by a custodian, receiver,
liquidator, assignee, trustee, sequestrator or similar official of
the Company or of any substantial part of its property, or the
making by it of an assignment for the benefit of creditors, or the
admission by it in writing of its inability to pay its debts
generally as they become due, or the taking of corporate action by
the Company in furtherance of any such action; or
	 
	 	     (7) any other Event of Default provided with respect to
Securities of that series.

     Upon receipt by the Trustee of any Notice of Default pursuant to this
Section 501 with respect to Securities of a series all or part of which is
represented by a Global Security, a record date shall be established

-39-

 

for determining Holders of Outstanding Securities of such series entitled
to join in such Notice of Default, which record date shall be at the close of
business on the day the Trustee receives such Notice of Default. The Holders
on such record date, or their duly designated proxies, and only such Persons,
shall be entitled to join in such Notice of Default, whether or not such
Holders remain Holders after such record date; provided, however, that unless
Holders of at least 25% in principal amount of the Outstanding Securities of
such series, or their proxies, shall have joined in such Notice of Default
prior to the date which is the ninetieth day after such record date, such
Notice of Default shall automatically and without further action by any Holder
be cancelled and of no further effect. Nothing in this paragraph shall prevent
a Holder, or a proxy of a Holder, from giving, (i) after expiration of such
90-day period, a new Notice of Default identical to a Notice of Default which
has been cancelled pursuant to the proviso to the preceding sentence or (ii)
during any such 90-day period, an additional Notice of Default with respect to
any new or different fact or circumstance permitting the giving of a Notice of
Default with respect to Securities of such series, in either of which events a
new record date shall be established pursuant to the provisions of this Section
501.

Section 502. Acceleration of Maturity; Rescission and Annulment.

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

     At any time after such a declaration of acceleration with respect to
Securities of any series has

-40-

 

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

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

	          	
	 	     (A) all overdue interest on all Securities of that
series,
	 
	 	     (B) the principal of (and premium, if any, on) any
Securities of that series which have become due otherwise
than by such declaration of acceleration and interest
thereon at the rate or rates prescribed therefor in such
Securities,
	 
	 	     (C) to the extent that payment of such interest is
lawful, interest upon overdue interest at the rate or rates
prescribed therefor in such Securities, and
	 
	 	     (D) all sums paid or advanced by the Trustee hereunder
and the reasonable compensation, expenses, disbursements
and advances of the Trustee, its agents and counsel;

     and

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

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

     Upon receipt by the Trustee of written notice declaring such an
acceleration, or rescission and annulment

-41-

 

thereof, with respect to Securities of a series all or part of which is
represented by a Global Security, a record date shall be established for
determining Holders of Outstanding Securities of such series entitled to join
in such notice, which record date shall be at the close of business on the day
the Trustee receives such notice. The Holders on such record date, or their
duly designated proxies, and only such Persons, shall be entitled to join in
such notice, whether or not such Holders remain Holders after such record date;
provided, however, that unless such declaration of acceleration, or rescission
and annulment, as the case may be, shall have become effective by virtue of the
requisite percentage having joined in such notice prior to the day which is the
ninetieth day after such record date, such notice of declaration of
acceleration, or rescission and annulment, as the case may be, shall
automatically and without further action by any Holder be cancelled and of no
further effect. Nothing in this paragraph shall prevent a Holder, or a proxy
of a Holder, of Securities of any series from giving, (i) after expiration of
such 90-day period, a new written notice of declaration of acceleration, or
rescission and annulment thereof, as the case may be, that is identical to a
written notice which has been cancelled pursuant to the proviso to the
preceding sentence or (ii) during any such 90-day period an additional written
notice of declaration of acceleration with respect to any other Event of
Default with respect to Securities of such series, or an additional written
notice of rescission or annulment of any declaration of acceleration with
respect to any other Event of Default with respect to Securities of such
series, in either of which events a new record date shall be established
pursuant to the provisions of this Section 502.

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

          The Company covenants that if

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

-42-

 

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

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

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

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

Section 504. Trustee May File Proofs of Claim.

          In case of the pendency of any receivership, insolvency, liquidation,
bankruptcy, reorganization, arrangement, adjustment, composition or other
judicial proceeding relative to the Company or any other obligor

-43-

 

upon the Securities or the property of the Company or of such other
obligor or their creditors, the Trustee (irrespective of whether the principal
of the Securities shall then be due and payable as therein expressed or by
declaration or otherwise and irrespective of whether the Trustee shall have
made any demand on the Company for the payment of overdue principal or
interest) shall be entitled and empowered, by intervention in such proceeding
or otherwise,

	     	
	 	     (i) to file and prove a claim for the whole amount of
principal (and premium, if any) and interest owing and unpaid in
respect of the Securities and to file such other papers or
documents as may be necessary or advisable in order to have the
claims of the Trustee (including any claim for the reasonable
compensation, expenses, disbursements and advances of the Trustee,
its agents and counsel) and of the Holders allowed in such
judicial proceeding, and
	 
	 	     (ii) to collect and receive any moneys or other property
payable or deliverable on any such claims and to distribute the
same;

and any custodian, receiver, assignee, trustee, liquidator, sequestrator or
other similar official in any such judicial proceeding is hereby authorized by
each Holder to make such payments to the Trustee and, in the event that the
Trustee shall consent to the making of such payments directly to the Holders,
to pay to the Trustee any amount due it for the reasonable compensation,
expenses, disbursements and advances of the Trustee, its agents and counsel,
and any other amounts due the Trustee under Section 607.

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

-44-

 

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

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

Section 506. Application of Money Collected.

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

	     	
	 	     FIRST: To the payment of all amounts due the Trustee under
Section 607, including the reasonable fees and expenses of its
counsel; and
	 
	 	     SECOND: To the payment of the amounts then due and unpaid
for principal of (and premium, if any) and interest on the
Securities in respect of which or for the benefit of which such
money has been collected, ratably, without preference or priority
of any kind, according to the amounts due and payable on such
Securities for principal (and premium, if any) and interest,
respectively.

Section 507. Limitation on Suits.

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

-45-

 

	     	
	 	     (1) such Holder has previously given written notice to the
Trustee of a continuing Event of Default with respect to the
Securities of that series;
	 
	 	     (2) the Holders of not less than 25% in principal amount of
the Outstanding Securities of that series shall have made written
request to the Trustee to institute proceedings in respect of such
Event of Default in its own name as Trustee hereunder;
	 
	 	     (3) such Holder or Holders have offered to the Trustee
reasonable indemnity against the costs, expenses and liabilities
to be incurred in compliance with such request;
	 
	 	     (4) the Trustee for 90 days after its receipt of such notice,
request and offer of indemnity has failed to institute any such
proceeding; and
	 
	 	     (5) no direction inconsistent with such written request has
been given to the Trustee during such 90-day period by the Holders
of a majority in principal amount of the Outstanding Securities of
that series;

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

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

          Notwithstanding any other provision in this Indenture, the Holder of any
Security shall have the right, which is absolute and unconditional, to receive
payment of the principal of (and premium, if any) and (subject to Section 307)
interest on such Security on the Stated

-46-

 

Maturity or Maturities expressed in such Security (or, in the case of
redemption, on the Redemption Date) and to institute suit for the enforcement
of any such payment, and such rights shall not be impaired without the consent
of such Holder.

Section 509. Restoration of Rights and Remedies.

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

Section 510. Rights and Remedies Cumulative.

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

Section 511. Delay or Omission Not Waiver.

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

-47-

 

may be deemed expedient, by the Trustee or by the Holders, as the case may be.

Section 512. Control by Holders.

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

	     	
	 	     (1) such direction shall not be in conflict with any rule of
law or with this Indenture, and
	 
	 	     (2) the Trustee may take any other action deemed proper by
the Trustee which is not inconsistent with such direction.

          Upon receipt by the Trustee of any written notice directing the time,
method or place of conducting any such proceeding or exercising any such trust
or power, with respect to Securities of a series all or part of which is
represented by a Global Security, a record date shall be established for
determining Holders of Outstanding Securities of such series entitled to join
in such notice, which record date shall be at the close of business on the day
the Trustee receives such notice. The Holders on such record date, or their
duly designated proxies, and only such Persons, shall be entitled to join in
such notice, whether or not such Holders remain Holders after such record date;
provided, however, that unless the Holders of a majority in principal amount of
the Outstanding Securities of such series shall have joined in such notice
prior to the day which is the ninetieth day after such record date, such notice
shall automatically and without further action by any Holder be cancelled and
of no further effect. Nothing in this paragraph shall prevent a Holder, or a
proxy of a Holder, from giving, (i) after expiration of such 90-day period, a
new notice identical to a notice which has been cancelled pursuant to the
proviso to the preceding sentence or (ii) during any such 90-day period, a new
direction contrary to or different from such direction, in either of which
events a new record date shall be established pursuant to the provisions of
this Section 512.

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Section 513. Waiver of Past Defaults.

          Subject to Section 502, the Holders of a majority in principal amount of
the Outstanding Securities of any series may, by notice to the Trustee, waive
an existing or past default with respect to the Securities of such series and
its consequences, except a default

	     	
	 	     (1) in the payment of principal of (or premium, if any) or
interest on any Security of such series, or in the deposit of any
sinking fund payment when and as due,
	 
	 	     (2) in respect of a covenant or provision hereof which under
Article Nine cannot be modified or amended without the consent of
the Holder of each Outstanding Security of such series affected,
or
	 
	 	     (3) in respect of an existing or past default described in
clause (4), (5) or (6) of Section 501, which may be waived by the
Holders of a majority in principal amount of all Outstanding
Securities voting together as a single class.

          The Company may, but shall not be obligated to, fix a record date for the
purpose of determining the Persons entitled to waive any past default
hereunder. If a record date is fixed, the Holders on such record date, or
their duly designated proxies, and only such Persons, shall be entitled to
waive any default hereunder, whether or not such Holders remain Holders after
such record date; provided, however, that unless such majority in principal
amount shall have waived such default prior to the date which is the ninetieth
day after such record date, any such waiver previously given shall
automatically and without further action by any Holder be cancelled and of no
further effect.

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

-49-

 

Section 514. Undertaking for Costs.

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

Section 515. Waiver of Stay or Extension Laws.

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

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ARTICLE SIX

The Trustee

Section 601. Certain Duties and Responsibilities.

          (a)  Except during the continuance of an Event of Default,

	     	
	 	     (1) the Trustee undertakes to perform such duties and only
such duties as are specifically set forth in this Indenture, and
no implied covenants or obligations shall be read into this
Indenture against the Trustee; and
	 
	 	     (2) in the absence of bad faith on its part, the Trustee may
conclusively rely, as to the truth of the statements and the
correctness of the opinions expressed therein, upon certificates
or opinions furnished to the Trustee and conforming to the
requirements of this Indenture; but in the case of any such
certificates or opinions which by any provision hereof are
specifically required to be furnished to the Trustee, the Trustee
shall be under a duty to examine the same to determine whether or
not they conform to the requirements of this Indenture.

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

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

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

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	 	     (2) the Trustee shall not be liable for any error of judgment
made in good faith by a Responsible Officer, unless it shall be
proved that the Trustee was negligent in ascertaining the
pertinent facts;
	 
	 	     (3) the Trustee shall not be liable with respect to any
action taken or omitted to be taken by it in good faith in
accordance with the direction of the Holders of a majority in
principal amount of the outstanding Securities of any series,
determined as provided in Section 512, relating to the time,
method and place of conducting any proceeding for any remedy
available to the Trustee, or exercising any trust or power
conferred upon the Trustee, under this Indenture with respect to
the Securities of such series; and
	 
	 	     (4) no provision of this Indenture shall require the Trustee
to expend or risk its own funds or otherwise incur any financial
liability in the performance of any of its duties hereunder, or in
the exercise of any of its rights or powers, if it shall have
reasonable grounds for believing that repayment of such funds or
adequate indemnity against such risk or liability is not
reasonably assured to it.

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

Section 602. Notice of Defaults.

          Within 90 days after the occurrence of any default hereunder with respect
to the Securities of any series, the Trustee shall transmit by mail to all
Holders of Securities of such series, as their names and addresses appear in
the Security Register, notice of such default hereunder known to the Trustee,
unless such default shall have been cured or waived; provided, however, that,
except in the case of a default in the payment of the principal of (or premium,
if any) or interest on any Security of such

-52-

 

series or in the payment of any sinking fund installment with respect to
Securities of such series, the Trustee shall be protected in withholding such
notice if and so long as the board of directors, the executive committee or a
trust committee of directors or Responsible Officers of the Trustee in good
faith determine that the withholding of such notice is in the interest of the
Holders of Securities of such series; and provided, further, that in the case
of any default of the character specified in Section 501(4) with respect to
Securities of such series, no such notice to Holders shall be given until at
least 30 days after the occurrence thereof. For the purpose of this Section,
the term “default” means any event which is, or after notice or lapse of time
or both would become, an Event of Default with respect to Securities of such
series.

Section 603. Certain Rights of Trustee.

          Subject to the provisions of Section 601:

	     	
	 	     (a) the Trustee may conclusively rely and shall be fully
protected in acting or refraining from acting upon any resolution,
certificate, statement, instrument, opinion, report, notice,
request, direction, consent, order, bond, debenture, note, other
evidence of indebtedness or other paper or document believed by it
to be genuine and to have been signed or presented by the proper
party or parties;
	 
	 	     (b) any request or direction of the Company mentioned herein
shall be sufficiently evidenced by a Company Request or Company
Order or as otherwise expressly provided herein and any resolution
of the Board of Directors may be sufficiently evidenced by a Board
Resolution;
	 
	 	     (c) whenever in the administration of this Indenture the
Trustee shall deem it desirable that a matter be proved or
established prior to taking, suffering or omitting any action
hereunder, the Trustee (unless other evidence be herein
specifically prescribed) may, in the absence of bad faith on its
part, conclusively rely upon an Officers’ Certificate;

-53-

 

	     	
	 	     (d) the Trustee may consult with counsel and the written
advice of such counsel or any Opinion of Counsel shall be full and
complete authorization and protection in respect of any action
taken, suffered or omitted by it hereunder in good faith and in
reliance thereon;
	 
	 	     (e) the Trustee shall be under no obligation to exercise any
of the rights or powers vested in it by this Indenture at the
request or direction of any of the Holders pursuant to this
Indenture, unless such Holders shall have offered to the Trustee
reasonable security or indemnity against the costs, expenses and
liabilities which might be incurred by it in compliance with such
request or direction;
	 
	 	     (f) the Trustee shall not be bound to make any investigation
into the facts or matters stated in any resolution, certificate,
statement, instrument, opinion, report, notice, request,
direction, consent, order, bond, debenture, note, other evidence
of indebtedness or other paper or document, but the Trustee, in
its discretion, may make such further inquiry or investigation
into such facts or matters as it may see fit, and, if the Trustee
shall determine to make such further inquiry or investigation, it
shall be entitled to examine the books, records and premises of
the Company, personally or by agent or attorney;
	 
	 	     (g) the Trustee may execute any of the trusts or powers
hereunder or perform any duties hereunder either directly or by or
through agents or attorneys and the Trustee shall not be
responsible for any misconduct or negligence on the part of any
agent or attorney appointed with due care by it hereunder; and
	 
	 	     (h) the Trustee shall not be liable for any action taken,
suffered, or omitted to be taken by it in good faith and
reasonably believed by it to be authorized or within the
discretion or rights or powers conferred upon it by this
Indenture; and

-54-

 

	     	
	 	     (i) the Trustee shall not be charged with knowledge of any
default or Event of Default with respect to the Securities unless
either (1) a Responsible Officer shall have actual knowledge of
such default or Event of Default or (2) written notice of such
default or Event of Default shall have been given to the Trustee
by the Company or by any Holder of the Securities.

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

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

Section 605. May Hold Securities.

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

Section 606. Money Held in Trust.

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

Section 607. Compensation and Reimbursement.

          The Company agrees

-55-

 

	     	
	 	     (1) to pay to the Trustee from time to time reasonable
compensation for all services rendered by it hereunder (which
compensation shall not be limited by any provision of law in
regard to the compensation of a trustee of an express trust);
	 
	 	     (2) except as otherwise expressly provided herein, to
reimburse the Trustee upon its request for all reasonable
expenses, disbursements and advances incurred or made by the
Trustee in accordance with any provision of this Indenture
(including the reasonable compensation and the expenses and
disbursements of its agents and counsel), except any such expense,
disbursement or advance as may be attributable to its negligence
or bad faith; and
	 
	 	     (3) to indemnify the Trustee for, and to hold it harmless
against, any loss, liability or expense incurred without
negligence or bad faith on its part, arising out of or in
connection with the acceptance or administration of the trust or
trusts hereunder (including the reasonable compensation and the
expenses and disbursements of its counsel), including the costs
and expenses of defending itself against any claim or liability in
connection with the exercise or performance of any of its powers
or duties hereunder.

          When the Trustee incurs expenses or renders services in connection with an
Event of Default specified in Section 501(5) and 501(6), the expenses
(including the reasonable charges and expenses of its counsel) and the
compensation for the services are intended to constitute expenses of
administration under any applicable Federal or State bankruptcy, insolvency,
reorganization, or other similar law.

          To secure the Company’s payment obligations in this Section 607, the
Trustee shall have a lien prior to the Securities on all money or property held
or collected by the Trustee, in its capacity as Trustee, except money or
property held in trust to pay principal of, premium, if any, and interest on
particular Securities.

-56-

 

          The provisions of this Section 607 shall survive the resignation or
removal of the Trustee and the termination of this Indenture.

Section 608. Disqualification; Conflicting Interests.

          The Trustee for the Securities of any series issued hereunder shall be
subject to the provisions of Section 310(b) of the Trust Indenture Act during
the period of time provided for therein. In determining whether the Trustee
has a conflicting interest as defined in Section 310(b) of the Trust Indenture
Act with respect to the Securities of any series, there shall be excluded this
Indenture with respect to Securities of any particular series of Securities
other than that series.

          Nothing herein shall prevent the Trustee from filing with the Securities
and Exchange Commission the application referred to in the second to last
paragraph of section 310(b) of the Trust Indenture Act.

Section 609. Corporate Trustee Required; Eligibility.

          There shall at all times be a Trustee hereunder which shall be a
corporation organized and doing business under the laws of the United States of
America, any State thereof or the District of Columbia, authorized under such
laws to exercise corporate trust powers, having a combined capital and surplus
of at least $50,000,000. If such corporation publishes reports of condition at
least annually, pursuant to law or to the requirements of said supervising or
examining authority, then for the purposes of this Section, the combined
capital and surplus of such corporation shall be deemed to be its combined
capital and surplus as set forth in its most recent report of condition so
published. If at any time the Trustee shall cease to be eligible in accordance
with the provisions of this Section, it shall resign immediately in the manner
and with the effect hereinafter specified in this Article.

Section 610. Resignation and Removal;
Appointment of Successor.

          (a)  No resignation or removal of the Trustee and no appointment of a
successor Trustee pursuant to this Article shall become effective until the
acceptance of

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appointment by the successor Trustee in accordance with the applicable
requirements of Section 611.

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

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

          (d)  If at any time:

	     	
	 	     (1) the Trustee shall fail to comply with Section 608(a)
after written request therefor by the Company or by any Holder who
has been a bona fide Holder of a Security for at least six months,
or
	 
	 	     (2) the Trustee shall cease to be eligible under Section 609
and shall fail to resign after written request thereof or by the
Company or by any such Holder, or
	 
	 	     (3) the Trustee shall become incapable of acting or shall be
adjudged a bankrupt or insolvent or a receiver of the Trustee or
of its property shall be appointed or any public officer shall
take charge or control of the Trustee or of its property or
affairs for the purpose of rehabilitation, conservation or
liquidation,

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

-58-

 

the removal of the Trustee with respect to all Securities and the appointment
of a successor Trustee or Trustees.

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

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

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Section 611. Acceptance of Appointment by Successor.

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

          (b)  In case of the appointment hereunder of a successor Trustee with
respect to the Securities of one or more (but not all) series, the Company, the
retiring Trustee and each successor Trustee with respect to the Securities of
one or more series shall execute and deliver an indenture supplemental hereto
wherein each successor Trustee shall accept such appointment and which (1)
shall contain such provisions as shall be necessary or desirable to transfer
and confirm to, and to vest in, each successor Trustee all the rights, powers,
trusts and duties of the retiring Trustee with respect to the Securities of
that or those series to which the appointment of such successor Trustee
relates, (2) if the retiring Trustee is not retiring with respect to all
Securities, shall contain such provisions as shall be deemed necessary or
desirable to confirm that all the rights, powers, trusts and duties of the
retiring Trustee with respect to the Securities of that or those series as to
which the retiring Trustee is not retiring shall continue to be vested in the
retiring Trustee, and (3) shall add to or change any of the provisions of this
Indenture as shall be necessary to provide for or facilitate the administration
of the trusts hereunder by more than one Trustee, it being understood that
nothing herein or in such supplemental indenture shall constitute such Trustees
co- trustees of the same trust and that each such Trustee shall be trustee of a
trust or trusts hereunder separate and apart from any trust or

-60-

 

trusts hereunder administered by any other such Trustee; and upon the
execution and delivery of such supplemental indenture the resignation or
removal of the retiring Trustee shall become effective to the extent provided
therein and each such successor Trustee, without any further act, deed or
conveyance, shall become vested with all the rights, powers, trusts and duties
of the retiring Trustee with respect to the Securities of that or those series
to which the appointment of such successor Trustee relates; but, on request of
the Company or any successor Trustee, such retiring Trustee shall duly assign,
transfer and deliver to such successor Trustee all property and money held by
such retiring Trustee hereunder with respect to the Securities of that or those
series to which the appointment of such successor Trustee relates.

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

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

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

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

-61-

 

with the same effect as if such successor Trustee had itself authenticated
such Securities.

Section 613. Preferential Collection of Claims Against Company.

          The Trustee shall comply with Section 311(a) of the Trust Indenture Act
with respect to each series of Securities for which it is Trustee.

Section 614. Appointment of Authenticating Agent.

          At any time when any of the Securities remain Outstanding the Company may
appoint an Authenticating Agent or Agents with respect to one or more series of
Securities which shall be authorized to act on behalf of the Trustee to
authenticate Securities of such series issued upon exchange, registration of
transfer or partial redemption thereof or pursuant to Section 306, and
Securities so authenticated shall be entitled to the benefits of this Indenture
and shall be valid and obligatory for all purposes as if authenticated by the
Trustee hereunder. Wherever reference is made in this Indenture to the
authentication and delivery of Securities by the Trustee or the Trustee’s
certificate of authentication, such reference shall be deemed to include
authentication and delivery on behalf of the Trustee by an Authenticating Agent
and a certificate of authentication executed on behalf of the Trustee by an
Authenticating Agent. Each Authenticating Agent shall at all times be a
corporation organized and doing business under the laws of the United States of
America, any State thereof or the District of Columbia, authorized under such
laws to act as Authenticating Agent, having a combined capital and surplus of
not less than $50,000,000 and subject to supervision or examination by Federal
or State authority. If such Authenticating Agent publishes reports of
condition at least annually, pursuant to law or to the requirements of said
supervising or examining authority, then for the purposes of this Section, the
combined capital and surplus of such Authenticating Agent shall be deemed to be
its combined capital and surplus as set forth in its most recent report of
condition so published. If at any time an Authenticating Agent shall cease to
be eligible in accordance with the provisions of this Section, such
Authenticating Agent shall resign

-62-

 

immediately in the manner and with the effect specified in this Section.

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

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

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

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

-63-

 

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

	 	JPMORGAN CHASE BANK,

as Trustee

	 	By	 

As Authenticating Agent

	 	By	 

Authorized Officer

ARTICLE SEVEN

Holders’ Lists and Reports by Trustee and Company

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

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

	     	
	 	     (a) semi-annually, not later than June 30 and December 31 in
each year, a list, in such form as the Trustee may reasonably
require, of the names and addresses of the Holders as of the
preceding June 15 or December 15, as the case may be, and
	 
	 	     (b) at such other times as the Trustee may request in
writing, within 30 days after the receipt by the Company of any
such request, a list of similar form and content as of a date not
more than 15 days prior to the time such list is furnished;

excluding from any such list names and addresses received by the Trustee in its
capacity as Security Registrar; provided that the Company shall not be
obligated to provide such a list of Holders at any time that such list would
not differ from the last such list provided by the Company to the Trustee under
this Section 701.

-64-

 

Section 702. Preservation of Information; Communications to Holders.

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

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

	     	
	 	     (i) afford such applicants access to the information
preserved at the time by the Trustee in accordance with Section
702(a), or
	 
	 	     (ii) inform such applicants as to the approximate number of
Holders whose names and addresses appear in the information
preserved at the time by the Trustee in accordance with Section
702(a), and as to the approximate cost of mailing to such Holders
the form of proxy or other communication, if any, specified in
such application.

          If the Trustee shall elect not to afford such applicants access to such
information, the Trustee shall, upon the written request of such applicants,
mail to each Holder whose name and address appear in the information preserved
at the time by the Trustee in accordance with Section 702(a) a copy of the form
of proxy or other communication which is specified in such request, with
reasonable promptness after a tender to the Trustee of the

-65-

 

material to be mailed and of payment, or provision for the payment, of the
reasonable expenses of mailing, unless within five days after such tender the
Trustee shall mail to such applicants and file with the Commission, together
with a copy of the material to be mailed, a written statement to the effect
that, in the opinion of the Trustee, such mailing would be contrary to the best
interest of the Holders or would be in violation of applicable law. Such
written statement shall specify the basis of such opinion. If the Commission,
after opportunity for a hearing upon the objections specified in the written
statement so filed, shall enter an order refusing to sustain any of such
objections or if, after the entry of an order sustaining one or more of such
objections, the Commission shall find, after notice and opportunity for
hearing, that all the objections so sustained have been met and shall enter an
order so declaring, the Trustee shall mail copies of such material to all such
Holders with reasonable promptness after the entry of such order and the
renewal of such tender; otherwise the Trustee shall be relieved of any
obligation or duty to such applicants respecting their application.

          (c)  Every Holder of Securities, by receiving and holding the same, agrees
with the Company and the Trustee that neither the Company nor the Trustee nor
any agent of either of them shall be held accountable by reason of the
disclosure of any such information as to the names and addresses of the Holders
in accordance with Section 702(b), regardless of the source from which such
information was derived, and that the Trustee shall not be held accountable by
reason of mailing any material pursuant to a request made under Section 702(b).

Section 703. Reports by Trustee.

          (a)  Within 60 days of each May 15, the Trustee shall transmit to Holders
such reports concerning the Trustee and its actions under this Indenture as may
be required pursuant to the Trust Indenture Act in the manner provided pursuant
thereto.

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

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Company will notify the Trustee when the Securities are listed on any
stock exchange.

Section 704. Reports by Company.

          The Company shall:

	     	
	 	     (1) file with the Trustee, within 15 days after the Company
is required to file the same with the Commission, copies of the
annual reports and of the information, documents and other reports
(or copies of such portions of any of the foregoing as the
Commission may from time to time by rules and regulations
prescribe) which the Company may be required to file with the
Commission pursuant to Section 13 or Section 15(d) of the Exchange
Act; or, if the Company is not required to file information,
documents or reports pursuant to either of said Sections, then it
shall file with the Trustee and the Commission, in accordance with
rules and regulations prescribed from time to time by the
Commission, such of the supplementary and periodic information,
documents and reports which may be required pursuant to Section 13
of the Exchange Act in respect of a security listed and registered
on a national securities exchange as may be prescribed from time
to time in such rules and regulations;
	 
	 	     (2) file with the Trustee and the Commission, in accordance
with rules and regulations prescribed from time to time by the
Commission, such additional information, documents and reports
with respect to compliance by the Company with the conditions and
covenants of this Indenture as may be required from time to time
by such rules and regulations; and
	 
	 	     (3) transmit by mail to all Holders, as their names and
addresses appear in the Security Register, within 30 days after
the filing thereof with the Trustee, such summaries of any
information, documents and reports required to be filed by the
Company pursuant to paragraphs (1) and (2) of this Section as may
be required by

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	 	rules and regulations prescribed from time to time by the
Commission.

ARTICLE EIGHT

Consolidation, Merger, Conveyance, Transfer or Lease

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

          The Company shall not consolidate with or merge into any other Person or
convey, transfer or lease its properties and assets substantially as an
entirety to any Person, and the Company shall not permit any Person to
consolidate with or merge into the Company or convey, transfer or lease its
properties and assets substantially as an entirety to the Company, unless:

	     	
	 	     (1) in case the Company shall consolidate with or merge into
another Person or convey, transfer or lease its properties and
assets substantially as an entirety to any Person, the Person
formed by such consolidation or into which the Company is merged
or the Person which acquires by conveyance or transfer, or which
leases, the properties and assets of the Company substantially as
an entirety shall be a corporation, partnership or trust organized
and existing under the laws of the United States of America, any
State thereof or the District of Columbia and shall expressly
assume, by an indenture supplemental hereto, executed and
delivered to the Trustee, in form satisfactory to the Trustee, the
due and punctual payment of the principal of (and premium, if any)
and interest on all the Securities and the performance of every
covenant of this Indenture on the part of the Company to be
performed or observed;
	 
	 	     (2) immediately after giving effect to such transaction and
treating any indebtedness which becomes an obligation of the
Company or a Subsidiary as a result of such transaction as having
been incurred by the Company or such Subsidiary at the time of
such transaction, no Event of Default, and no event which, after

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	 	notice or lapse of time or both, would become an Event of
Default, shall have happened and be continuing;
	 
	 	     (3) if, as a result of any such consolidation or merger or
such conveyance, transfer or lease, properties or assets of the
Company would become subject to a mortgage, pledge, lien, security
interest or other encumbrance which would not be permitted by this
Indenture, the Company or such successor corporation or Person, as
the case may be, shall take such steps as shall be necessary
effectively to secure the Securities equally and ratably with (or
prior to) all indebtedness secured thereby; and
	 
	 	     (4) the Company has delivered to the Trustee an Officers’
Certificate and an Opinion of Counsel, each stating that such
consolidation, merger, conveyance, transfer or lease and, if a
supplemental indenture is required in connection with such
transaction, such supplemental indenture comply with this Article
and that all conditions precedent herein provided for relating to
such transaction have been complied with.

Section 802. Successor Person Substituted.

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

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ARTICLE NINE

Supplemental Indentures

Section 901. Supplemental Indentures Without Consent of Holders.

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

	     	
	 	     (1) to evidence the succession of another Person to the
Company and the assumption by any such successor of the covenants
of the Company herein and in the Securities; or
	 
	 	     (2) to add to the covenants of the Company for the benefit of
the Holders of all or any series of Securities (and if such
covenants are to be for the benefit of less than all series of
Securities, stating that such covenants are expressly being
included solely for the benefit of such series) or to surrender
any right or power herein conferred upon the Company; or
	 
	 	     (3) to add any additional Events of Default; or
	 
	 	     (4) to add to or change any of the provisions of this
Indenture to such extent as shall be necessary to permit or
facilitate the issuance of Securities in bearer form, registerable
or not registerable as to principal, and with or without interest
coupons, or to permit or facility the issuance of Securities in
uncertificated form; or
	 
	 	     (5) to change or eliminate any of the provisions of this
Indenture, provided that any such change or elimination shall
become effective only when there is no Security Outstanding of any
series created prior to the execution of such supplemental
indenture which is entitled to the benefit of such provision; or

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	 	     (6) to secure the Securities pursuant to the requirements of
Section 1005 or otherwise; or
	 
	 	     (7) to establish the form or terms of Securities of any
series as permitted by Sections 201 and 301; or
	 
	 	     (8) to evidence and provide for the acceptance of appointment
hereunder by a successor Trustee with respect to the Securities of
one or more series and to add to or change any of the provisions
of this Indenture as shall be necessary to provide for or
facilitate the administration of the trusts hereunder by more than
one Trustee, pursuant to the requirements of Section 611(b); or
	 
	 	     (9) to add to or change any of the provisions of this
Indenture with respect to any Securities that by their terms may
be converted into securities or other property other than
Securities of the same series and of like tenor, in order to
permit or facilitate the issuance, payment or conversion of such
Securities; or
	 
	 	     (10) to qualify or maintain qualification of this Indenture
under the Trust Indenture Act.
	 
	 	     (11) to cure any ambiguity, to correct or supplement any
provision herein which may be inconsistent with any other
provision herein, or to make any other provisions with respect to
matters or questions arising under this Indenture, provided such
action shall not adversely affect the interests of the Holders of
Securities of any series in any material respect.

Section 902. Supplemental Indentures with Consent of Holders.

          With the consent of the Holders of a majority in principal amount of the
Outstanding Securities affected by such supplemental indenture voting together
as a single class, by Act of said Holders delivered to the Company and the
Trustee, the Company, when authorized by a Board Resolution, and the Trustee
may enter into an indenture or

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indentures supplemental hereto for the purpose of adding any provisions to
or changing in any manner or eliminating any of the provisions of this
Indenture or of modifying in any manner the rights of the Holders of Securities
of such series under this Indenture; provided, however, that no such
supplemental indenture shall, without the consent of the Holder of each
Outstanding Security affected thereby,

	     	
	 	     (1) change the Stated Maturity of the principal of, or any
installment of principal of or interest on, any Security, or
reduce the principal amount thereof or the rate of interest
thereon or any premium payable upon the redemption thereof, or
reduce the amount of the principal of an Original Issue Discount
Security that would be due and payable upon a declaration of
acceleration of the Maturity thereof pursuant to Section 502, or
change any Place of Payment where, or the coin or currency in
which, any Security or any premium or the interest thereon is
payable, or impair the right to institute suit for the enforcement
of any such payment on or after the Stated Maturity thereof (or,
in the case of redemption, on or after the Redemption Date), or
	 
	 	     (2) reduce the percentage in principal amount of the
Outstanding Securities of any series, the consent of whose Holders
is required for any such supplemental indenture, or the consent of
whose Holders is required for any waiver (of compliance with
certain provisions of this Indenture or certain defaults hereunder
and their consequences) provided for in this Indenture, or
	 
	 	     (3) modify any of the provisions of this Section, Section 513
or Section 1007, except to increase any such percentage or to
provide that certain other provisions of this Indenture cannot be
modified or waived without the consent of the Holder of each
Outstanding Security affected thereby, provided, however, that
this clause shall not be deemed to require the consent of any
Holder with respect to changes in the references to “the Trustee”
and concomitant changes in this

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	 	Section and Section 1007, or the deletion of this proviso, in
accordance with the requirements of Sections 611(b) and 901(8).

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

          The Company may, but shall not be obligated to, fix a record date for the
purpose of determining the Persons entitled to consent to any indenture
supplemental hereto. If a record date is fixed, the Holders on such record
date, or their duly designated proxies, and only such Persons, shall be
entitled to consent to such supplemental indenture, whether or not such Holders
remain Holders after such record date; provided, however, that unless such
consent shall have become effective by virtue of the requisite percentage
having been obtained prior to the date which is the ninetieth day after such
record date, any such consent previously given shall, automatically and without
further action by any Holder, be cancelled and of no further effect.

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

Section 903. Execution of Supplemental Indentures.

          In executing, or accepting the additional trusts created by, any
supplemental indenture permitted by this Article or the modifications thereby
of the trusts created by this Indenture, the Trustee shall be entitled to
receive, and (subject to Section 601) shall be fully protected in relying upon,
in addition to the documents required by Section 102, an Opinion of Counsel
stating that the execution of such supplemental indenture is authorized or
permitted by this Indenture. The Trustee may, but shall not be obligated to,
enter into any such supplemental

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indenture which affects the Trustee’s own rights, duties or immunities
under this Indenture or otherwise.

Section 904. Effect of Supplemental Indentures.

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

Section 905. Conformity with Trust Indenture Act.

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

Section 906. Reference in Securities to Supplemental Indentures.

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

ARTICLE TEN

Covenants

Section 1001. Payment of Principal, Premium and Interest.

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

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Section 1002. Maintenance of Office or Agency.

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

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

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

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

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

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

	     	
	 	     (1) hold all sums held by it for the payment of the principal
of (and premium, if any) or interest on Securities of that series
in trust for the benefit of the Persons entitled thereto until
such sums shall be paid to such Persons or otherwise disposed of
as herein provided;
	 
	 	     (2) give the Trustee notice of any default by the Company (or
any other obligor upon the Securities of that series) in the
making of any payment of principal (and premium, if any) or
interest on the Securities of that series; and
	 
	 	     (3) at any time during the continuance of any such default,
upon the written request of the Trustee, forthwith pay to the
Trustee all sums so held in trust by such Paying Agent.

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

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          Any money deposited with the Trustee or any Paying Agent, or then held by
the Company, in trust for the payment of the principal of (and premium, if any)
or interest on any Security of any series and remaining unclaimed for one year
after such principal (and premium, if any) or interest has become due and
payable shall be paid to the Company on Company Request, or (if then held by
the Company) shall be discharged from such trust; and the Holder of such
Security shall thereafter, as an unsecured general creditor, look only to the
Company for payment thereof, and all liability of the Trustee or such Paying
Agent with respect to such trust money, and all liability of the Company as
trustee thereof, shall thereupon cease.

Section 1004. Corporate Existence.

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

Section 1005. Limitation on Liens.

          The Company will not, and will not permit any Designated Subsidiary to,
directly or indirectly, create, issue, assume, incur or guarantee any
indebtedness for money borrowed which is secured by a mortgage, pledge, lien,
security interest or other encumbrance of any nature on any of the Voting Stock
of a Designated Subsidiary unless the Outstanding Securities (together with
such other indebtedness of the Company or such Designated Subsidiary then
existing or thereafter created which is not subordinate to the Outstanding
Securities as the Company may elect) shall be secured equally and ratably with
(or prior to) such secured indebtedness for money borrowed so long as such
secured indebtedness for money borrowed shall be so secured. This Section
shall not prevent the sale or other disposition of a Designated Subsidiary.

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          For purposes of this Section, “Voting Stock” means all classes of stock
(including any and all shares, interests, participations or other equivalents
(however designated) of corporate stock) then outstanding of a Designated
Subsidiary normally entitled to vote in elections of directors. For purposes
of this Section, “Designated Subsidiary” means St. Paul Fire and Marine
Insurance Company and any other Subsidiary the assets of which, determined as
of the last day of the most recent calendar quarter ended at least 30 days
prior to the date of such determination and in accordance with generally
accepted accounting principles as in effect on the last day of such calendar
quarter, exceed 20% of the Consolidated Assets of the Company. For purposes of
this Section, “Consolidated Assets of the Company” means the assets of the
Company and its consolidated subsidiaries, to be determined as of the last day
of the most recent calendar quarter ended at least 30 days prior to the date of
such determination and in accordance with generally accepted accounting
principles as in effect on the last day of such calendar quarter.

Section 1006. Statement by Officers as to Default.

          The Company will deliver to the Trustee, within 120 days after the end of
each fiscal year of the Company ending after the date hereof, an Officers’
Certificate, stating whether or not to the best knowledge of the signers
thereof the Company is in default in the performance and observance of any of
the terms, provisions and conditions of Sections 1001 to 1006, inclusive, and
if the Company shall be in default, specifying all such defaults and the nature
and status thereof of which they may have knowledge.

Section 1007. Waiver of Certain Covenants.

          The Company may omit in any particular instance to comply with any term,
provision or condition set forth in Sections 1002 to 1005, inclusive, if before
the time for such compliance the Holders of a majority in principal amount of
the Outstanding Securities shall, by Act of such Holders, waive compliance in
such instance with such term, provision or condition. In the event that there
shall be included in this Indenture any covenant, other than a covenant to pay
principal, premium (if any) and interest, solely for the benefit of one or
more, but less than all,

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series of Securities, then, unless otherwise expressly provided with
respect to such covenant, the Company may similarly omit in any particular
instance to comply with any term, provision or condition of such covenant if
before the time of such compliance the holders of a majority in principal
amount of all Outstanding Securities entitled to the benefit of such covenant,
by Act of such Holders, acting together as a single class, waive compliance in
such instance with such term, provision or condition. No such waiver
contemplated by this Section 1007 shall extend to or affect such term,
provision or condition except to the extent so expressly waived, and, until
such waiver shall become effective, the obligations of the Company and the
duties of the Trustee in respect of any such term, provision or condition shall
remain in full force and effect.

          The Company may, but shall not be obligated to, fix a record date for the
purpose of determining the Persons entitled to waive any such term, provision
or condition. If a record date is fixed, the Holders on such record date, or
their duly designated proxies, and only such Persons, shall be entitled to
waive any such term, provision or condition hereunder, whether or not such
Holders remain Holders after such record date; provided, however, that unless
the Holders of at least a majority in principal amount of (i) the Outstanding
Securities or (ii) the Outstanding Securities of such series, as the case may
be, shall have waived such term, provision or condition prior to the date which
is 90 days after such record date, any such waiver previously given shall
automatically and without further action by any Holder be cancelled and of no
further effect.

ARTICLE ELEVEN

Redemption of Securities

Section 1101. Applicability of Article.

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

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Section 1102. Election to Redeem; Notice to Trustee.

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

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

          If less than all the Securities of any series are to be redeemed, the
particular Securities to be redeemed shall be selected not more than 60 days
prior to the Redemption Date by the Trustee, from the Outstanding Securities of
such series not previously called for redemption, by such method as the Trustee
shall deem fair and appropriate and which may provide for the selection for
redemption of portions (equal to the minimum authorized denomination for
Securities of that series or any integral multiple thereof) of the principal
amount of Securities of such series of a denomination larger than the minimum
authorized denomination for Securities of that series.

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

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

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Section 1104. Notice of Redemption.

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

          All notices of redemption shall state:

	     	
	 	     (1) the Redemption Date,
	 
	 	     (2) the Redemption Price,
	 
	 	     (3) if less than all the outstanding Securities of any series
are to be redeemed, the identification (and, in the case of
partial redemption, the principal amounts) of the particular
Securities to be redeemed,
	 
	 	     (4) that on the Redemption Date the Redemption Price will
become due and payable upon each such Security to be redeemed and,
if applicable, that interest thereon will cease to accrue on and
after said date,
	 
	 	     (5) the place or places where such Securities are to be
surrendered for payment of the Redemption Price, and
	 
	 	     (6) that the redemption is for a sinking fund, if such is the
case.

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

Section 1105. Deposit of Redemption Price.

          On or prior to any 10:00 a.m., New York City time, on Redemption Date, the
Company shall deposit with the Trustee or with a Paying Agent (or, if the
Company is acting as its own Paying Agent, segregate and hold in trust as
provided in Section 1003) an amount of money sufficient to pay the Redemption
Price of, and (except if the Redemption Date shall be an Interest Payment Date) accrued

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interest on, all the Securities which are to be redeemed on that date.

Section 1106. Securities Payable on Redemption Date.

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

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

Section 1107. Securities Redeemed in Part.

          Any Security which is to be redeemed only in part shall be surrendered at
a Place of Payment therefor (with, if the Company or the Trustee so requires,
due endorsement by, or a written instrument of transfer in form satisfactory to
the Company and the Trustee duly executed by, the Holder thereof or his
attorney duly authorized in writing), and the Company shall execute, and the
Trustee shall authenticate and deliver to the Holder of such Security without
service charge, a new Security or Securities of the same series and of like
tenor, of any authorized denomination as requested by such Holder, in aggregate
principal amount equal to and in exchange for the unredeemed portion of the
principal of the Security so surrendered.

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ARTICLE TWELVE

Sinking Funds

Section 1201. Applicability of Article.

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

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

Section 1202. Satisfaction of Sinking Fund Payments with Securities.

          The Company (1) may deliver Outstanding Securities of a series (other than
any previously called for redemption) and (2) may apply as a credit Securities
of a series which have been redeemed either at the election of the Company
pursuant to the terms of such Securities or through the application of
permitted optional sinking fund payments pursuant to the terms of such
Securities, in each case in satisfaction of all or any part of any sinking fund
payment with respect to the Securities of such series required to be made
pursuant to the terms of such Securities as provided for by the terms of such
series; provided that such Securities have not been previously so credited.
Such Securities shall be received and credited for such purpose by the Trustee
at the Redemption Price specified in such Securities for redemption through
operation of the sinking fund and the amount of such sinking fund payment shall
be reduced accordingly.

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Section 1203. Redemption of Securities for Sinking Fund.

          Not less than 90 days prior to each sinking fund payment date for any
series of Securities, the Company will deliver to the Trustee an Officers’
Certificate specifying the amount of the next ensuing sinking fund payment for
that series pursuant to the terms of that series, the portion thereof, if any,
which is to be satisfied by payment of cash and the portion thereof, if any,
which is to be satisfied by delivering and crediting Securities of that series
pursuant to Section 1202 and will also deliver to the Trustee any Securities to
be so delivered. Not less than 60 days before each such sinking fund payment
date the Trustee shall select the Securities to be redeemed upon such sinking
fund payment date in the manner specified in Section 1103 and cause notice of
the redemption thereof to be given in the name of and at the expense of the
Company in the manner provided in Section 1104. Such notice having been duly
given, the redemption of such Securities shall be made upon the terms and in
the manner stated in Sections 1106 and 1107.

ARTICLE THIRTEEN

Defeasance and Covenant Defeasance

Section 1301. Applicability of Article; Company’s Option to Effect Defeasance or Covenant Defeasance.

          If pursuant to Section 301 provision is made for either or both of (a)
defeasance of the Securities of a series under Section 1302 or (b) covenant
defeasance of the Securities of a series under Section 1303, then the
provisions of such Section or Sections, as the case may be, together with the
other provisions of this Article Thirteen, shall be applicable to the
Securities of such series, and the Company may at its option by Board
Resolution, at any time, with respect to the Securities of such series, elect
to have either Section 1302 (if applicable) or Section 1303 (if applicable) be
applied to the Outstanding Securities of such series upon compliance with the
conditions set forth below in this Article Thirteen.

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Section 1302. Defeasance and Discharge.

          Upon the Company’s exercise of the above option applicable to this
Section, the Company shall be deemed to have been discharged from its
obligations with respect to the Outstanding Securities of such series on and
after the date the conditions precedent set forth below are satisfied
(hereinafter, “defeasance”). For this purpose, such defeasance means that the
Company shall be deemed to have paid and discharged the entire indebtedness
represented by the Outstanding Securities of such series and to have satisfied
all its other obligations under such Securities and this Indenture insofar as
such Securities are concerned (and the Trustee, at the expense of the Company,
shall execute proper instruments acknowledging the same), except for the
following which shall survive until otherwise terminated or discharged
hereunder: (A) the rights of Holders of Outstanding Securities of such series
to receive, solely from the trust fund described in Section 1304 as more fully
set forth in such Section, payments of the principal of (and premium, if any)
and interest on such Securities when such payments are due, (B) the Company’s
obligations with respect to such Securities under Sections 304, 305, 306, 1002
and 1003 and such obligations as shall be ancillary thereto, (C) the rights,
powers, trusts, duties, immunities and other provisions in respect of the
Trustee hereunder and (D) this Article Thirteen. Subject to compliance with
this Article Thirteen, the Company may exercise its option under this Section
1302 notwithstanding the prior exercise of its option under Section 1303 with
respect to the Securities of such series. Following a defeasance, payment of
the Securities of such series may not be accelerated because of an Event of
Default.

Section 1303. Covenant Defeasance.

          Upon the Company’s exercise of the above option applicable to this
Section, the Company shall be released from its obligations under (i) Section
1005, (ii) the occurrence of an event specified in Section 501(4) (with respect
to Section 1005) shall not be deemed an Event of Default and (iii) any other
section, clause or provision applicable to such Securities that are determined
pursuant to Section 301 to be subject to this provision with respect to the
Outstanding Securities of such series on and after the date the conditions
precedent set forth below are

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satisfied (hereinafter, “covenant defeasance”). For this purpose, such
covenant defeasance means that, with respect to the Outstanding Securities of
such series, the Company may omit to comply with and shall have no liability in
respect of any term, condition or limitation set forth in any such Section or
Clause whether directly or indirectly by reason of any reference elsewhere
herein to any such Section or Clause or by reason of any reference in any such
Section or Clause to any other provision herein or in any other document, but
the remainder of this Indenture and such Securities shall be unaffected
thereby. Following a covenant defeasance, payment of the Securities of such
series may not be accelerated because of or by reference to the Sections
specified above in this Section 1303.

Section 1304. Conditions to Defeasance or Covenant Defeasance.

          The following shall be the conditions precedent to application of either
Section 1302 or Section 1303 to the Outstanding Securities of such series:

	     	
	 	     (1) the Company shall irrevocably have deposited or caused to
be deposited with the Trustee (or another trustee satisfying the
requirements of Section 609 who shall agree to comply with the
provisions of this Article Thirteen applicable to it) as trust
funds in trust for the purpose of making the following payments,
specifically pledged as security for, and dedicated solely to, the
benefit of the Holders of such Securities, (A) money in an amount,
or (B) U.S. Government Obligations which through the scheduled
payment of principal and interest in respect thereof in accordance
with their terms will provide, not later than one day before the
due date of any payment, money in an amount, or (C) a combination
thereof, sufficient, without reinvestment, in the opinion of a
nationally recognized firm of independent public accountants
expressed in a written certification thereof delivered to the
Trustee, to pay and discharge, and which shall be applied by the
Trustee (or other qualifying trustee) to pay and discharge, (i)
the principal of (and premium, if any) and interest on the
Outstanding Securities

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	 	of such series to maturity or redemption, as the case may be,
and (ii) any mandatory sinking fund payments or analogous payments
applicable to the Outstanding Securities of such series on the due
dates thereof. Before such a deposit the Company may make
arrangements satisfactory to the Trustee for the redemption of
Securities at a future date or dates in accordance with Article
Eleven, which shall be given effect in applying the foregoing.
For this purpose, “U.S. Government Obligations” means securities
that are (x) direct obligations of the United States of America
for the payment of which its full faith and credit is pledged or
(y) obligations of a Person controlled or supervised by and acting
as an agency or instrumentality of the United States of America
the payment of which is unconditionally guaranteed as a full faith
and credit obligation by the United States of America, which, in
either case, are not callable or redeemable at the option of the
issuer thereof, and shall also include a depository receipt issued
by a bank (as defined in Section 3(a)(2) of the Securities Act of
1933, as amended) as custodian with respect to any such U.S.
Government Obligation or a specific payment of principal of or
interest on any such U.S. Government Obligation held by such
custodian for the account of the holder of such depository
receipt, provided that (except as required by law) such custodian
is not authorized to make any deduction from the amount payable to
the holder of such depository receipt from any amount received by
the custodian in respect of the U.S. Government Obligation or the
specific payment of principal of or interest on the U.S.
Government Obligation evidenced by such depository receipt.
	 
	 	     (2) No Event of Default or event which with notice or lapse
of time or both would become an Event of Default with respect to
the Securities of such series shall have occurred and be
continuing (A) on the date of such deposit or (B) insofar as
subsections 501(5) and (6) are concerned, at any time during the
period ending on the 121st day after the date of such deposit or,
if longer, ending on the day following the

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	 	expiration of the longest preference period applicable to the
Company in respect of such deposit (it being understood that the
condition in this clause (B) is a condition subsequent and shall
not be deemed satisfied until the expiration of such period).
	 
	 	     (3) Such defeasance or covenant defeasance shall not (A)
cause the Trustee for the Securities of such series to have a
conflicting interest as defined in Section 608 or for purposes of
the Trust Indenture Act with respect to any securities of the
Company or (B) result in the trust arising from such deposit to
constitute, unless it is qualified as, a regulated investment
company under the Investment Company Act of 1940, as amended.
	 
	 	     (4) Such defeasance or covenant defeasance shall not result
in a breach or violation of, or constitute a default under, this
Indenture or any other agreement or instrument to which the
Company is a party or by which it is bound.
	 
	 	     (5) In the case of an election under Section 1302, the
Company shall have delivered to the Trustee an Opinion of Counsel
stating that (x) the Company has received from, or there has been
published by, the Internal Revenue Service a ruling, or (y) since
the date of this Indenture there has been a change in the
applicable Federal income tax law, in either case to the effect
that, and based thereon such opinion shall confirm that, the
Holders of the Outstanding Securities of such series will not
recognize income, gain or loss for Federal income tax purposes as
a result of such defeasance and will be subject to Federal income
tax on the same amounts, in the same manner and at the same time
as would have been the case if such defeasance had not occurred.
	 
	 	     (6) In the case of an election under Section 1303, the
Company shall have delivered to the Trustee an Opinion of Counsel
to the effect that the Holders of the Outstanding Securities of

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	 	such series will not recognize income, gain or loss for
Federal income tax purposes as a result of such covenant
defeasance and will be subject to Federal income tax on the same
amounts, in the same manner and at the same times as would have
been the case if such covenant defeasance had not occurred.
	 
	 	     (7) Such defeasance or covenant defeasance shall be effected
in compliance with any additional terms, conditions or limitations
which may be imposed on the Company in connection therewith
pursuant to Section 301.
	 
	 	     (8) The Company shall have delivered to the Trustee an
Officers’ Certificate and an Opinion of Counsel, each stating that
all conditions precedent provided for relating to either the
defeasance under Section 1302 or the covenant defeasance under
Section 1303 (as the case may be) have been complied with.

Section 1305. Deposited Money and U.S. Government Obligations to be Held in Trust;
Other Miscellaneous Provisions.

          Subject to the provisions of the last paragraph of Section 1003, all money
and U.S. Government Obligations (including the proceeds thereof) deposited with
the Trustee (or other qualifying trustee — collectively, for purposes of this
Section 1305, the “Trustee”) pursuant to Section 1304 in respect of the
Outstanding Securities of such series shall be held in trust and applied by the
Trustee, in accordance with the provisions of such Securities and this
Indenture, to the payment, either directly or through any Paying Agent (but not
including the Company acting as its own Paying Agent) as the Trustee may
determine, to the Holders of such Securities, of all sums due and to become due
thereon in respect of principal (and premium, if any) and interest, but such
money need not be segregated from other funds except to the extent required by
law.

          The Company shall pay and indemnify the Trustee against any tax, fee or
other charge imposed on or assessed against the money or U.S. Government
Obligations deposited

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pursuant to Section 1304 or the principal and interest received in respect
thereof.

          Anything herein to the contrary notwithstanding, the Trustee shall deliver
or pay to the Company from time to time upon Company Request any money or U.S.
Government Obligations held by it as provided in Section 1304 which, in the
opinion of a nationally recognized firm of independent public accountants
expressed in a written certification thereof delivered to the Trustee, are in
excess of the amount thereof which would then be required to be deposited to
effect an equivalent defeasance or covenant defeasance.

Section 1306. Reinstatement.

          If the Trustee or the Paying Agent is unable to apply any money in
accordance with Section 1302 or 1303 by reason of any order or judgment or any
court or governmental authority enjoining, restraining or otherwise prohibiting
such application, then the Company’s obligations under the Securities of such
series shall be revived and reinstated as though no deposit had occurred
pursuant to this Article Thirteen until such time as the Trustee or Paying
Agent is permitted to apply all such money in accordance with Section 1302 or
1303; provided, however, that if the Company makes any payment of principal of
(and premium, if any) any such Security following the reinstatement of its
obligations, the Company shall be subrogated to the rights of the Holders of
such Securities to receive such payment from the money held by the Trustee or
the Paying Agent.

          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.

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

	 	 	 
	 	THE ST. PAUL COMPANIES, INC.
	 	By 	/S/ BRUCE A. BACKBERG
	 	

	 	
Name: Bruce A. Backberg

Title: Senior Vice President

	 	 	 
	 	JPMORGAN CHASE BANK
	 	By 	/S/ JOANNE ADAMIS
	 	

	 	
Name: Joanne Adamis

Title: Vice President

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	STATE OF MINNESOTA 

COUNTY OF RAMSEY	)
)  ss.:
)	 

          On the 11th day of March, 2002, before me personally came Bruce A.
Backberg, to me known, who, being by me duly sworn, did depose and say that he
is a Senior Vice President of The St. Paul Companies, Inc., one of the
corporations described in and which executed the foregoing instrument; that he
knows the seal of said corporation; that the seal affixed to said instrument is
such corporate seal; that it was so affixed by authority of the Board of
Directors of said corporation, and that he signed his name thereto by like
authority.

	 	  /S/ KRISTI L. GILBERTSON

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	STATE OF NEW YORK

COUNTY OF NEW YORK	)
)  ss.:
)	 

          On the 12th day of March, 2002, before me personally came Joanne Adamis,
to me known, who, being by me duly sworn, did depose and say that he is a Vice
President of JPMorgan Chase Bank, one of the corporations described in and
which executed the foregoing instrument; that she knows the seal of said
corporation; that the seal affixed to said instrument is such corporate seal;
that it was so affixed by authority of the Board of Directors of said
corporation, and that she signed her name thereto by like authority.

	 	  /S/ EMILY FAYAN

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