Document:

EX-4.8

Exhibit 4.8

 

PURCHASE CONTRACT AGREEMENT

between

AMERICAN INTERNATIONAL GROUP, INC.

and

THE BANK OF NEW YORK

as Purchase Contract Agent

Dated as of May 16, 2008

 

 

 

TABLE OF CONTENTS

	 	 	 	 	 	 	 
	Article I

	 
	 	 	 	 	 	 
	Definitions and Other Provisions of General Application

	 
	 	 	 	 	 	 
	Section 1.01

	 	Definitions
	 	 	1	 
	Section 1.02

	 	Compliance Certificates and Opinions
	 	 	14	 
	Section 1.03

	 	Form of Documents Delivered to Purchase Contract Agent
	 	 	14	 
	Section 1.04

	 	Acts of Holders; Record Dates
	 	 	15	 
	Section 1.05

	 	Notices
	 	 	16	 
	Section 1.06

	 	Notice to Holders; Waiver
	 	 	17	 
	Section 1.07

	 	Effect of Headings and Table of Contents
	 	 	17	 
	Section 1.08

	 	Successors and Assigns
	 	 	17	 
	Section 1.09

	 	Separability Clause
	 	 	17	 
	Section 1.10

	 	Benefits of Agreement
	 	 	18	 
	Section 1.11

	 	Governing Law
	 	 	18	 
	Section 1.12

	 	Legal Holidays
	 	 	18	 
	Section 1.13

	 	Counterparts
	 	 	18	 
	Section 1.14

	 	Inspection of Agreement
	 	 	19	 
	Section 1.15

	 	Appointment of Financial Institution as Agent for the Company
	 	 	19	 
	Section 1.16

	 	No Waiver
	 	 	19	 
	Section 1.17

	 	Force Majeure
	 	 	19	 
	 
	 	 	 	 	 	 
	Article II

	 
	 	 	 	 	 	 
	Certificate Forms

	 
	 	 	 	 	 	 
	Section 2.01

	 	Forms of Certificates Generally
	 	 	19	 
	Section 2.02

	 	Form of Purchase Contract Agent’s Certificate of Authentication
	 	 	20	 
	 
	 	 	 	 	 	 
	Article III

	 
	 	 	 	 	 	 
	The Equity Units

	 
	 	 	 	 	 	 
	Section 3.01

	 	Amount; Form and Denominations
	 	 	20	 
	Section 3.02

	 	Rights and Obligations Evidenced by the Certificates
	 	 	20	 
	Section 3.03

	 	Execution, Authentication, Delivery and Dating
	 	 	22	 
	Section 3.04

	 	Temporary Certificates
	 	 	22	 
	Section 3.05

	 	Registration; Registration of Transfer and Exchange
	 	 	23	 
	Section 3.06

	 	Notices to Holders
	 	 	24	 
	Section 3.07

	 	Book-Entry Interests
	 	 	24	 
	Section 3.08

	 	Appointment of Successor Depositary
	 	 	25	 
	Section 3.09

	 	Definitive Certificates
	 	 	25	 
	Section 3.10

	 	Mutilated, Destroyed, Lost and Stolen Certificates
	 	 	26	 
	Section 3.11

	 	Persons Deemed Owners
	 	 	27	 
	Section 3.12

	 	Cancellation
	 	 	27	 
	Section 3.13

	 	Creation of Treasury Units by Substitution of Qualifying Treasury Securities
	 	 	28	 

Purchase Contract Agreement

 

 

	 	 	 	 	 	 	 
	Section 3.14

	 	Recreation of Corporate Units
	 	 	29	 
	Section 3.15

	 	Transfer of Collateral upon Occurrence of Termination Event
	 	 	30	 
	Section 3.16

	 	No Consent to Assumption
	 	 	31	 
	Section 3.17

	 	CUSIP Numbers
	 	 	31	 
	 
	 	 	 	 	 	 
	Article IV

	 
	 	 	 	 	 	 
	The Debentures

	 
	Section 4.01

	 	Distributions; Rights to Distributions Preserved
	 	 	31	 
	Section 4.02

	 	Notice and Voting
	 	 	32	 
	 
	 	 	 	 	 	 
	Article V

	 
	 	 	 	 	 	 
	The Stock Purchase Contracts

	 
	 	 	 	 	 	 
	Section 5.01

	 	Purchase of Shares of Common Stock
	 	 	33	 
	Section 5.02

	 	Remarketing; Payment of Purchase Price
	 	 	34	 
	Section 5.03

	 	Issuance of Shares of Common Stock
	 	 	36	 
	Section 5.04

	 	Adjustment of Fixed Settlement Rates
	 	 	37	 
	Section 5.05

	 	Notice of Adjustments and Certain Other Events
	 	 	45	 
	Section 5.06

	 	Termination Event; Notice
	 	 	46	 
	Section 5.07

	 	Early Settlement
	 	 	46	 
	Section 5.08

	 	No Fractional Shares
	 	 	48	 
	Section 5.09

	 	Charges and Taxes
	 	 	49	 
	Section 5.10

	 	Contract Adjustment Payments
	 	 	49	 
	Section 5.11

	 	Deferral of Contract Adjustment Payments
	 	 	53	 
	 
	 	 	 	 	 	 
	Article VI

	 
	 	 	 	 	 	 
	Rights and Remedies of Holders

	 
	 	 	 	 	 	 
	Section 6.01

	 	Unconditional Right of Holders to Receive Contract Adjustment
Payments and to Purchase Shares of Common Stock
	 	 	54	 
	Section 6.02

	 	Restoration of Rights and Remedies
	 	 	55	 
	Section 6.03

	 	Rights and Remedies Cumulative
	 	 	55	 
	Section 6.04

	 	Delay or Omission Not Waiver
	 	 	55	 
	Section 6.05

	 	Undertaking for Costs
	 	 	55	 
	Section 6.06

	 	Waiver of Stay or Extension Laws
	 	 	55	 
	 
	 	 	 	 	 	 
	Article VII

	 
	 	 	 	 	 	 
	The Purchase Contract Agent

	 
	 	 	 	 	 	 
	Section 7.01

	 	Certain Duties and Responsibilities
	 	 	56	 
	Section 7.02

	 	Notice of Default
	 	 	57	 
	Section 7.03

	 	Certain Rights of Purchase Contract Agent
	 	 	57	 
	Section 7.04

	 	Not Responsible for Recitals or Issuance of Equity Units
	 	 	59	 
	Section 7.05

	 	May Hold Equity Units
	 	 	59	 

 Purchase Contract Agreement

ii

 

	 	 	 	 	 	 	 
	Section 7.06

	 	Money Held in Custody
	 	 	59	 
	Section 7.07

	 	Compensation and Reimbursement
	 	 	59	 
	Section 7.08

	 	Corporate Purchase Contract Agent Required, Eligibility
	 	 	60	 
	Section 7.09

	 	Resignation and Removal; Appointment of Successor
	 	 	60	 
	Section 7.10

	 	Acceptance of Appointment by Successor
	 	 	61	 
	Section 7.11

	 	Merger, Conversion, Consolidation or Succession to Business
	 	 	62	 
	Section 7.12

	 	Preservation of Information; Communications to Holders
	 	 	62	 
	Section 7.13

	 	No Obligations of Purchase Contract Agent
	 	 	63	 
	Section 7.14

	 	Tax Compliance
	 	 	63	 
	 
	 	 	 	 	 	 
	Article VIII

	 
	 	 	 	 	 	 
	Supplemental Agreements

	 
	 	 	 	 	 	 
	Section 8.01

	 	Supplemental Agreements without Consent of Holders
	 	 	64	 
	Section 8.02

	 	Supplemental Agreements with Consent of Holders
	 	 	64	 
	Section 8.03

	 	Execution of Supplemental Agreements
	 	 	65	 
	Section 8.04

	 	Effect of Supplemental Agreements
	 	 	65	 
	Section 8.05

	 	Reference to Supplemental Agreements
	 	 	66	 
	 
	 	 	 	 	 	 
	Article IX

	 
	 	 	 	 	 	 
	Consolidation, Merger, Conveyance, Transfer or Lease

	 
	 	 	 	 	 	 
	Section 9.01

	 	Covenant Not to Consolidate, Merge, Convey, Transfer or Lease
Property Except under Certain Conditions
	 	 	66	 
	Section 9.02

	 	Rights and Duties of Successor Person
	 	 	66	 
	Section 9.03

	 	Officers’ Certificate Given to Purchase Contract Agent
	 	 	67	 
	 
	 	 	 	 	 	 
	Article X

	 
	 	 	 	 	 	 
	Covenants

	 
	 	 	 	 	 	 
	Section 10.01

	 	Performance under Stock Purchase Contracts
	 	 	67	 
	Section 10.02

	 	Maintenance of Office or Agency
	 	 	67	 
	Section 10.03

	 	Company to Reserve Common Stock
	 	 	68	 
	Section 10.04

	 	Covenants as to Common Stock
	 	 	68	 
	Section 10.05

	 	Statements of Officers of the Company as to Default
	 	 	68	 
	Section 10.06

	 	ERISA
	 	 	68	 
	Section 10.07

	 	Tax Treatment
	 	 	68	 
	 
	 	 	 	 	 	 
	Exhibit A

	 	— Form of Corporate Unit	 	 	 	 
	Exhibit B

	 	—  Form of Treasury Unit	 	 	 	 
	Exhibit C 

	 	—  Form of Instruction to Purchase Contract Agent	 	 	 	 
	Exhibit D 

	 	—  Form of Notice of Termination Event	 	 	 	 
	Exhibit E 

	 	—  Form of Notice to Settle with Cash	 	 	 	 
	Exhibit F 

	 	—  Form of Notice to Collateral Agent	 	 	 	 

Purchase Contract Agreement

iii

 

     Purchase Contract Agreement, dated as of May 16, 2008, between American International
Group, Inc., a Delaware corporation (the “Company”), and The Bank of New York, a New York banking
corporation, acting as purchase contract agent for the Holders of Equity Units (as defined herein)
from time to time (the “Purchase Contract Agent”).

Recitals

     The Company has duly authorized the execution and delivery of this Agreement and the
Certificates (as defined herein) evidencing the Equity Units.

     All things necessary to make the Stock Purchase Contracts (as defined herein), when the
Certificates are executed by the Company and authenticated, executed on behalf of the Holders and
delivered by the Purchase Contract Agent, as provided in this Agreement, the valid and legally
binding obligations of the Company have been done. For and in consideration of the premises and
the purchase of the Equity Units by the Holders thereof, it is mutually agreed as follows:

ARTICLE I

DEFINITIONS AND OTHER PROVISIONS

OF GENERAL APPLICATION

     Section 1.01 Definitions.

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

     (a) the terms defined in this Article I have the meanings assigned to them in this Article I
and include the plural as well as the singular, and nouns and pronouns of the masculine gender
include the feminine and neuter genders;

     (b) all accounting terms not otherwise defined herein have the meanings assigned to them in
accordance with generally accepted accounting principles in the United States as in effect at the
time of the calculation to be made;

     (c) all references to an Article, Section or other subdivision or Exhibit refer to an Article,
Section or other subdivision of, or Exhibit to, this Agreement;

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

     (e) the following terms have the meanings given to them in this Section 1.01(e):

     “Additional Debentures” means junior subordinated debentures of the Company that will be
issued pursuant to the Base Indenture, in the Company’s sole discretion, as provided in
Section 5.11(c)(ii).

     “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

Purchase Contract Agreement

 

 

securities, by contract or otherwise; and the terms “controlling” and “controlled” have
meanings correlative to the foregoing.

     “Agreement” means this instrument as originally executed or as it may from time to time be
supplemented or amended by one or more agreements supplemental hereto entered into pursuant to the
applicable provisions hereof.

     “Applicable Market Value” means, with respect to any Stock Purchase Date, the average of the
VWAP per share of Common Stock (or Exchange Property Units in which the Stock Purchase Contracts
will be settled following a Reorganization Event) on each of the 20 consecutive Trading Days in the
applicable Observation Period. For purposes of calculating the Exchange Property Unit value, (x)
the value of any common stock included in the Exchange Property Unit will be determined using the
average of the VWAP per share of such common stock on each of the 20 consecutive Trading Days in
the applicable Observation Period, and (y) the value of any other property, including securities
other than common stock, included in the Exchange Property Unit will be the value of such property
on the first Trading Day of the applicable Observation Period (as determined in good faith by the
Board of Directors, whose determination shall be conclusive and described in a Board Resolution).

     “Bankruptcy Code” means Title 11 of the United States Code, or any other law of the United
States that from time to time provides a uniform system of bankruptcy laws.

     “Base Indenture” means the Junior Subordinated Debt Indenture, dated as of March 13, 2007,
between the Company and the Trustee, as amended or supplemented from time to time.

     “Beneficial Owner” means, with respect to a Book-Entry Interest, a Person who is the
beneficial owner of such Book-Entry Interest as reflected on the books of the Depositary or on the
books of a Person maintaining an account with such Depositary (directly as a Depositary Participant
or as an indirect participant, in each case in accordance with the rules of such Depositary).

     “Blackout Period” means any period following the close of business on the second Business Day
immediately preceding the first day of any Remarketing Period for any series of Debentures and
ending on the last day of such Remarketing Period or, if a Successful Remarketing occurs during
such Remarketing Period, the applicable Stock Purchase Date.

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

     “Board Resolution” means one or more resolutions of the Board of Directors, a copy of which
has been certified by the Secretary or an Assistant Secretary of the Company, to have been duly
adopted by the Board of Directors and to be in full force and effect on the date of such
certification and delivered to the Purchase Contract Agent.

     “Book-Entry Interest” means a beneficial interest in a Global Certificate, registered in the
name of a Depositary or a nominee thereof, ownership and transfers of which shall be maintained and
made through book entries by such Depositary as described in Section 3.07.

     “Business Day” means a day other than a Saturday, Sunday or any other day on which banking
institutions and trust companies in New York City are authorized or required by any applicable law
to close.

Purchase Contract Agreement

2

 

     “Certificate” means a Corporate Unit Certificate or a Treasury Unit Certificate.

     “Closing Price” of the Common Stock on any date of determination means the last reported sale
price of the Common Stock on the NYSE on that date. If the Common Stock is not listed for trading
on the NYSE on any date of determination, the closing price of the Common Stock on such date of
determination means the closing sale price as reported in the composite transactions for the
principal U.S. securities exchange on which the Common Stock is listed, or, if the Common Stock is
not so reported, the market value of the Common Stock on that date as determined by a nationally
recognized independent investment banking firm retained by the Company for this purpose.

     “Code” means the Internal Revenue Code of 1986, as amended from time to time, and
administrative guidance and the regulations promulgated thereunder.

     “Collateral Agent” means Wilmington Trust Company, as Collateral Agent under the Pledge
Agreement until a successor Collateral Agent shall have become appointed as such pursuant to the
applicable provisions of the Pledge Agreement, and thereafter “Collateral Agent” shall mean the
Person who is then the Collateral Agent thereunder.

     “Collateral Substitution” means (i) with respect to Corporate Units, the substitution of the
Pledged Debentures included in such Corporate Units with the applicable Qualifying Treasury
Securities in an aggregate principal amount at maturity equal to the aggregate Principal Amount of
such Pledged Debentures, or (ii) with respect to Treasury Units, the substitution for the Pledged
Treasury Securities included in such Treasury Units with the applicable Debentures in an aggregate
Principal Amount equal to the aggregate principal amount at maturity of the Pledged Treasury
Securities.

     “Common Stock” means the common stock, par value $2.50 per share, of the Company.

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

     “Contract Adjustment Payments” means the payments payable by the Company in arrears on the
Payment Dates in respect of each Stock Purchase Contract that are accrued but unpaid prior to each
such date:

     (i) from and including May 16, 2008 to but excluding the First Stock Purchase Date, at
the annual rate of 2.7067% on the initial Stated Amount of $75 per Stock Purchase Contract;

     (ii) from and including the First Stock Purchase Date to but excluding the Second Stock
Purchase Date, at the annual rate of 2.6450% on the adjusted Stated Amount of $50 per Stock
Purchase Contract; and

     (iii) from and including the Second Stock Purchase Date to but excluding the Third
Stock Purchase Date, at the annual rate of 2.6100% on the adjusted Stated Amount of $25 per
Stock Purchase Contract.

     “Corporate Trust Office” means the principal office of the Purchase Contract Agent at which at
any time its corporate trust business shall be administered, which office at the date hereof is
located at 101 Barclay Street, Floor 8 West, New York, New York 10286, Attention: Corporate Trust

Purchase Contract Agreement

3

 

Administration, or such other address as the Purchase Contract Agent may designate from time to
time by notice to the Holders and the Company, or the principal corporate trust office of any
successor Purchase Contract Agent (or such other address as such successor Purchase Contract Agent
may designate from time to time by notice to the Holders and the Company).

     “Corporate Unit” means the collective rights and obligations of a Holder of a Corporate Unit
Certificate in respect of:

(i) (1) at all times prior to the First Stock Purchase Date or, if earlier, the First
Remarketing Settlement Date, a 1/40 undivided beneficial interest in a Series B-1 Debenture,

	 	(2)	 	at all times prior to the Second Stock Purchase Date or, if
earlier, the Second Remarketing Settlement Date, a 1/40 undivided beneficial
interest in a Series B-2 Debenture,
	 
	 	(3)	 	at all times prior to the Third Stock Purchase Date or, if
earlier, the Third Remarketing Settlement Date, a 1/40 undivided beneficial
interest in a Series B-3 Debenture, and
	 
	 	(4)	 	after the Remarketing Settlement Date for any series of
Debentures and prior to the applicable Stock Purchase Date, the undivided
beneficial ownership interest corresponding to one Corporate Unit in the
Treasury Portfolio purchased with the net proceeds of the Remarketing, and

(ii) the related Stock Purchase Contract.

The Debentures comprising part of a Corporate Unit at any time are referred to as the “applicable
series of Debentures.”

     “Corporate Unit Certificate” means a certificate evidencing the rights and obligations of a
Holder in respect of the number of Corporate Units specified on such certificate.

     “Current Market Price” means, in respect of a share of Common Stock on any day of
determination, the average of the VWAP per share of Common Stock over each of the 10 consecutive
Trading Days ending on the earlier of the day in question and the day before the “ex date” with
respect to the issuance or distribution requiring such computation. For purposes of this
definition, the term “ex date,” when used with respect to any issuance or distribution, shall mean
the first date on which the shares of Common Stock trade on the applicable exchange or in the
applicable market, regular way, without the right to receive such issuance or distribution.

     “Custodial Agent” means Wilmington Trust Company, as Custodial Agent under the Pledge
Agreement until a successor Custodial Agent shall have become such pursuant to the applicable
provisions of the Pledge Agreement, and thereafter “Custodial Agent” shall mean the Person who is
then the Custodial Agent thereunder.

     “Debentures” means, collectively, the Series B-1 Debentures, the Series B-2 Debentures and the
Series B-3 Debentures.

Purchase Contract Agreement

4

 

     “Depositary” means a clearing agency registered under Section 17A of the Exchange Act that is
designated to act as Depositary for the Equity Units as contemplated by Sections 3.07 and 3.08 or
its nominee.

     “Depositary Participant” means a broker, dealer, bank, other financial institution or other
Person for whom from time to time the Depositary effects book entry transfers and pledges of
securities deposited with the Depositary.

     “DTC” means The Depository Trust Company.

     “Equity Units” means Corporate Units or Treasury Units, as applicable.

     “ERISA” means the Employee Retirement Income Security Act of 1974, as amended from time to
time, and the rules and regulations promulgated thereunder.

     “Exchange Act” means the Securities Exchange Act of 1934 and any statute successor thereto, in
each case as amended from time to time, and the rules and regulations promulgated thereunder.

     “Failed Remarketing,” in respect of a series of Debentures, has the meaning set forth in the
applicable Supplemental Indenture.

     “First Qualifying Treasury Security” means a zero-coupon U.S. Treasury security (CUSIP No.
912820GC5) having a principal amount of $1,000 and maturing on February 15, 2011.

     “First Remarketing Settlement Date” means the third Business Day immediately succeeding the
date of a Successful Remarketing of the Series B-1 Debentures.

     “First Stock Purchase Date” means February 15, 2011.

     “Fixed Settlement Rates” means the Maximum Settlement Rate and the Minimum Settlement Rate,
collectively.

     “Global Certificate” means a Certificate that evidences all or part of the Equity Units and is
registered in the name of the Depositary or a nominee thereof.

     “Holder” means, with respect to an Equity Unit, the Person in whose name the Equity Unit
evidenced by a Certificate is registered in the Security Register.

     “Indenture” means, with respect to any series of Debentures, the Base Indenture and the
applicable Supplemental Indenture, taken together.

     “Interest Payment Date” for each series of Debentures means the Interest Payment Date set
forth in the applicable Supplemental Indenture.

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

Purchase Contract Agreement

5

 

     “Make-Whole Shares” means, with respect to a Cash Merger Early Settlement, a number of shares
of Common Stock (for the purpose of this definition, the “make-whole share amount”) determined for
each Stock Purchase Contract being settled by reference to the table below based on the date on
which the Cash Merger becomes effective (for the purposes of this definition, the “effective date”)
and the price (for the purposes of this definition, the “stock price”) paid per share for Common
Stock in such Cash Merger. If holders of Common Stock receive only cash in such transaction, the
stock price shall be the cash amount paid per share. Otherwise, the stock price shall be the
average of the Closing Prices per share of Common Stock on each of the 20 consecutive Trading Days
ending on the Trading Day immediately preceding the effective date of such Cash Merger.

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	Stock Prices
	Effective Date	 	$10.00	 	$20.00	 	$30.00	 	$38.00	 	$40.00	 	$45.60	 	$50.00	 	$60.00	 	$70.00	 	$80.00	 	$120.00
	May 12, 2008
	 	 	1.3942	 	 	 	0.5204	 	 	 	0.1887	 	 	 	0.0000	 	 	 	0.1127	 	 	 	0.2722	 	 	 	0.2385	 	 	 	0.1711	 	 	 	0.1252	 	 	 	0.0927	 	 	 	0.0274	 
	May 1, 2009
	 	 	1.0158	 	 	 	0.3821	 	 	 	0.1118	 	 	 	0.0000	 	 	 	0.0574	 	 	 	0.2274	 	 	 	0.1949	 	 	 	0.1360	 	 	 	0.0970	 	 	 	0.0702	 	 	 	0.0188	 
	May 1, 2010
	 	 	0.5516	 	 	 	0.2212	 	 	 	0.0350	 	 	 	0.0000	 	 	 	0.0035	 	 	 	0.1707	 	 	 	0.1370	 	 	 	0.0860	 	 	 	0.0565	 	 	 	0.0387	 	 	 	0.0090	 
	February 15, 2011
	 	 	0.1389	 	 	 	0.0618	 	 	 	0.0069	 	 	 	0.0000	 	 	 	0.0000	 	 	 	0.0841	 	 	 	0.0532	 	 	 	0.0234	 	 	 	0.0132	 	 	 	0.0089	 	 	 	0.0021	 
	February 16, 2011
	 	 	0.1374	 	 	 	0.0611	 	 	 	0.0067	 	 	 	0.0000	 	 	 	0.0000	 	 	 	0.0851	 	 	 	0.0528	 	 	 	0.0232	 	 	 	0.0131	 	 	 	0.0088	 	 	 	0.0021	 
	May 1, 2011
	 	 	0.0582	 	 	 	0.0261	 	 	 	0.0038	 	 	 	0.0000	 	 	 	0.0000	 	 	 	0.0393	 	 	 	0.0263	 	 	 	0.0092	 	 	 	0.0049	 	 	 	0.0033	 	 	 	0.0006	 
	May 2, 2011
	 	 	0.0527	 	 	 	0.0238	 	 	 	0.0026	 	 	 	0.0000	 	 	 	0.0000	 	 	 	0.0359	 	 	 	0.0232	 	 	 	0.0087	 	 	 	0.0046	 	 	 	0.0032	 	 	 	0.0007	 
	August 1, 2011
	 	 	0.0000	 	 	 	0.0000	 	 	 	0.0000	 	 	 	0.0000	 	 	 	0.0000	 	 	 	0.0000	 	 	 	0.0000	 	 	 	0.0000	 	 	 	0.0000	 	 	 	0.0000	 	 	 	0.0000	 

     The stock prices and make-whole share amounts set forth in the table shall be subject to
adjustment as set forth in Section 5.04(a).

     If the exact stock price and effective date applicable to a Cash Merger is not set forth on
the table, then:

	 	(i)	 	if the stock price is between two stock price amounts on the table or the
effective date is between two dates on the table, the amount of Make-Whole Shares shall
be determined by straight line interpolation between the make-whole share amounts set
forth for the higher and lower stock price amounts and the two dates, as applicable,
based on a 360-day year;
	 
	 	(ii)	 	if the stock price is in excess of $120.00 per share (subject to adjustment as
set forth in Section 5.04(a)), then the make-whole share amount shall be zero; and

	 	(iii)	 	if the stock price is less than $10.00 per share (subject to adjustment as set
forth in Section 5.04(a)), for purposes of this definition the “minimum stock price,”
then the make-whole share amount shall be determined as if the stock price equaled the
minimum stock price, using straight line interpolation, as described under (i) above,
if the effective date is between two dates on the table.

     “Maximum Settlement Rate” means 0.6579, which is approximately equal to $25 divided by the
Reference Price, as adjusted from time to time pursuant to Section 5.04.

     “Minimum Settlement Rate” means 0.54823, which is approximately equal to $25 divided by the
Threshold Appreciation Price, as adjusted from time to time pursuant to Section 5.04.

     “NYSE” means The New York Stock Exchange, Inc.

Purchase Contract Agreement

6

 

     “Observation Period” means, with respect to any Stock Purchase Date or Cash Merger Early
Settlement Date, the 20 consecutive Trading Day period ending on the third Trading Day immediately
preceding such Stock Purchase Date or Cash Merger Early Settlement Date.

     “Officers’ Certificate” means a certificate signed by the Company’s Chairman or a Vice
Chairman of the Board, its President, a Senior Vice President or a Vice President and by its
Treasurer, an Assistant Treasurer, its Secretary or an Assistant Secretary, and delivered to the
Purchase Contract Agent.

     “Opinion of Counsel” means a written opinion of counsel, who may be counsel to the Company
(and who may be an employee of the Company). An Opinion of Counsel may rely on certificates as to
matters of fact.

     “Outstanding Equity Units” means, as of the date of determination, all Equity Units evidenced
by Certificates theretofore authenticated, executed and delivered under this Agreement, except:

     (i) if a Termination Event has occurred, (x) Corporate Units for which the underlying
Debentures have been theretofore deposited with the Purchase Contract Agent in trust for the
Holders of such Corporate Units and (y) Treasury Units;

     (ii) Equity Units evidenced by Certificates theretofore cancelled by the Purchase
Contract Agent or delivered to the Purchase Contract Agent for cancellation or deemed
cancelled pursuant to the provisions of this Agreement; and

     (iii) Equity Units evidenced by Certificates in exchange for or in lieu of which other
Certificates have been authenticated, executed on behalf of the Holder and delivered
pursuant to this Agreement, other than any such Certificate in respect of which there shall
have been presented to the Purchase Contract Agent proof satisfactory to it that such
Certificate is held by a protected purchaser (within the meaning of the UCC) in whose hands
the Equity Units evidenced by such Certificate are valid obligations of the Company;

provided, however, that in determining whether the Holders of the requisite number of the Equity
Units have given any request, demand, authorization, direction, notice, consent or waiver
hereunder, Equity Units owned by the Company or any Affiliate of the Company shall be disregarded
and deemed not to be Outstanding Equity Units, except that, in determining whether the Purchase
Contract Agent shall be authorized and protected in relying upon any such request, demand,
authorization, direction, notice, consent or waiver, only Equity Units that a Responsible Officer
of the Purchase Contract Agent actually knows to be so owned shall be so disregarded. Equity Units
so owned that have been pledged in good faith may be regarded as Outstanding Equity Units if the
pledgee establishes to the satisfaction of the Purchase Contract Agent the pledgee’s right so to
act with respect to such Equity Units and that the pledgee is not the Company or any Affiliate of
the Company. “Outstanding Corporate Units” means Corporate Units that are Outstanding Equity
Units, and “Outstanding Treasury Units” means Treasury Units that are Outstanding Equity Units.

     “Payment Date” means each February 1, May 1, August 1 and November 1 of each year, commencing
August 1, 2008.

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

Purchase Contract Agreement

7

 

     “Plan” means an employee benefit plan that is subject to ERISA, a plan or individual
retirement account that is subject to Section 4975 of the Code or any entity whose assets are
considered assets of any such plan.

     “Pledge” means the pledge under the Pledge Agreement of the Debentures, the Pledged Treasury
Portfolio or the Qualifying Treasury Securities, as the case may be, in each case constituting a
part of the Equity Units.

     “Pledge Agreement” means the Pledge Agreement, dated as of the date hereof, among the Company,
Wilmington Trust Company, as Collateral Agent, Custodial Agent and Securities Intermediary, and the
Purchase Contract Agent, on its own behalf and as attorney-in-fact for the Holders from time to
time of the Equity Units, as amended from time to time.

     “Predecessor Corporate Unit Certificate,” of any particular Corporate Unit Certificate, means
every previous Corporate Unit Certificate evidencing all or a portion of the rights and obligations
of the Company and the Holder under the Corporate Units evidenced thereby; and, for the purposes of
this definition, any Corporate Unit Certificate authenticated and delivered under Section 3.10 in
exchange for or in lieu of a mutilated, destroyed, lost or stolen Corporate Unit Certificate shall
be deemed to evidence the same rights and obligations of the Company and the Holder as the
mutilated, destroyed, lost or stolen Corporate Unit Certificate.

     “Predecessor Treasury Unit Certificate,” of any particular Treasury Unit Certificate, means
every previous Treasury Unit Certificate evidencing all or a portion of the rights and obligations
of the Company and the Holder under the Treasury Units evidenced thereby; and, for the purposes of
this definition, any Treasury Unit Certificate authenticated and delivered under Section 3.10 in
exchange for or in lieu of a mutilated, destroyed, lost or stolen Treasury Unit Certificate shall
be deemed to evidence the same rights and obligations of the Company and the Holder as the
mutilated, destroyed, lost or stolen Treasury Unit Certificate.

     “Principal Amount” in respect of a series of Debentures, means the principal amount of such
Debentures payable at the final stated maturity.

     “Prospectus” means the prospectus relating to the delivery of shares or any securities in
connection with an Early Settlement pursuant to Section 5.07 or a Cash Merger Early Settlement of
Stock Purchase Contracts pursuant to Section 5.04(b)(ii), in the form in which first filed, or
transmitted for filing, with the Securities and Exchange Commission after the effective date of the
Registration Statement pursuant to Rule 424(b) under the Securities Act, including the documents
incorporated by reference therein as of the date of such Prospectus.

     “Purchase Contract Agent” means the Person named as the “Purchase Contract Agent” in the first
paragraph of this Agreement until a successor Purchase Contract Agent shall have become such
pursuant to the applicable provisions of this Agreement, and thereafter “Purchase Contract Agent”
shall mean such Person or any subsequent successor who is appointed pursuant to this Agreement.

     “Qualifying Treasury Securities” means the First Qualifying Treasury Securities, the Second
Qualifying Treasury Securities and the Third Qualifying Treasury Securities (each, a “Qualifying
Treasury Security”), and “applicable Qualifying Treasury Securities” at any time means the
Qualifying Treasury Securities comprising part of a Treasury Unit at such time.

Purchase Contract Agreement

8

 

     “Quotation Agent” means any primary U.S. government securities dealer in New York City
selected by the Company.

     “Record Date” for any distribution and Contract Adjustment Payment payable on any Payment Date
means the 15th day of the calendar month preceding the calendar month in which the relevant Payment
Date falls.

     “Reference Price” means $38.00.

     “Registration Statement” means a registration statement under the Securities Act prepared by
the Company covering, inter alia, the delivery by the Company of any securities in connection with
an Early Settlement on the Early Settlement Date or a Cash Merger Early Settlement of Stock
Purchase Contracts on the Cash Merger Early Settlement Date under Section 5.04(b)(ii), including
all exhibits thereto and the documents incorporated by reference in the Prospectus contained in
such registration statement, and any post-effective amendments thereto.

     “Remarketing,” in respect of a series of Debentures, has the meaning set forth in the
Supplemental Indenture related to that series of Debentures.

     “Remarketing Agent”, in respect of a series of Debentures, has the meaning set forth in the
Supplemental Indenture related to that series of Debentures.

     “Remarketing Agent’s Fee,” in respect of a series of Debentures, has the meaning set forth in
the Supplemental Indenture related to that series of Debentures.

     “Remarketing Agreement” means a Remarketing Agreement, dated as of the date hereof, among the
Company, Citigroup Global Markets Inc.; J.P. Morgan Securities Inc. and the Purchase Contract
Agent, as amended from time to time.

     “Remarketing Period,” in respect of a series of Debentures, means the 30-day period ending on
the date that is not less than three Business Days prior to the date one month before the
applicable Stock Purchase Date, as specified by the Company.

     “Remarketing Period Start Date,” in respect of any Remarketing Period, means the first day of
such Remarketing Period.

     “Remarketing Price per Debenture” means, with respect to each $1,000 Principal Amount of
Debentures of any series, an amount in cash equal to the quotient of the Treasury Portfolio
Purchase Price divided by the number of Debentures of such series, each $1,000 Principal Amount of
such Debentures being one Debenture, included in the applicable Remarketing that are held as
components of Corporate Units.

     “Remarketing Settlement Date” means, as applicable, the First Remarketing Settlement Date, the
Second Remarketing Settlement Date or the Third Remarketing Settlement Date.

     “Responsible Officer” shall mean, when used with respect to the Purchase Contract Agent, any
officer within the corporate trust department of the Purchase Contract Agent, including any vice
president, assistant vice president, assistant secretary, assistant treasurer, trust officer or any
other officer of the Purchase Contract Agent who customarily performs functions similar to those
performed by the Persons

Purchase Contract Agreement

9

 

who at the time shall be such officers, respectively, or to whom any
corporate trust matter is referred because of such person’s knowledge of and familiarity with the
particular subject and who shall have direct responsibility for the administration of this Purchase
Contract Agreement.

     “Second Qualifying Treasury Security” means a zero-coupon U.S. Treasury security (CUSIP No.
912820NA1) having a principal amount of $1,000 and maturing on April 30, 2011.

     “Second Remarketing Settlement Date” means the third Business Day immediately succeeding the
date of a Successful Remarketing of the Series B-2 Debentures.

     “Second Stock Purchase Date” means May 1, 2011.

     “Securities Act” means the Securities Act of 1933, and any statute successor thereto, in each
case as amended from time to time, and the rules and regulations promulgated thereunder.

     “Securities Intermediary” means Wilmington Trust Company, as Securities Intermediary under the
Pledge Agreement until a successor Securities Intermediary shall have become such pursuant to the
applicable provisions of the Pledge Agreement, and thereafter “Securities Intermediary” shall mean
such successor or any subsequent successor who is appointed pursuant to the Pledge Agreement.

     “Separate Debentures” means Debentures that are no longer a component of Corporate Units and
are included in a Remarketing pursuant to Section 5.02(a)(iii).

     “Separate Debentures Purchase Price” means, with respect to any Remarketing, the amount in
cash equal to the product of (i) the Remarketing Price per Debenture and (ii) the number of
Separate Debentures included in such Remarketing.

     “Series B-1 Debentures” means the 5.67% Series B-1 Junior Subordinated Debentures due
February 15, 2041 of the Company.

     “Series B-2 Debentures” means the 5.82% Series B-2 Junior Subordinated Debentures due May 1,
2041 of the Company.

     “Series B-3 Debentures” means the 5.89% Series B-3 Junior Subordinated Debentures due
August 1, 2041 of the Company.

     “Series of Debentures” means each of the Series B-1 Debentures, Series B-2 Debentures or
Series B-3 Debentures.

     “Stated Amount” means, with respect to any one Corporate Unit or Treasury Unit:

     (i) from and including May 16, 2008 to but excluding the First Stock Purchase Date,
$75.00;

     (ii) from and including the First Stock Purchase Date to but excluding the Second Stock
Purchase Date, $50.00; and

     (iii) from and including the Second Stock Purchase Date to but excluding the Third
Stock Purchase Date, $25.00.

Purchase Contract Agreement

10

 

     “Stock Purchase Contract” means, with respect to any Equity Unit, the contract forming a part
of such Equity Unit and obligating (i) the Company to sell, and the Holder of such Equity Unit to
purchase, shares of Common Stock on each Stock Purchase Date and (ii) the Company to pay the Holder
thereof Contract Adjustment Payments, in each case on the terms and subject to the conditions set
forth in Article V.

     “Stock Purchase Date” means, as applicable, the First Stock Purchase Date, the Second Stock
Purchase Date or the Third Stock Purchase Date. When used in connection with any series of
Debentures, the term “applicable Stock Purchase Date” means the First Stock Purchase Date in the
case of the Series B-1 Debentures, the Second Stock Purchase Date in the case of the Series B-2
Debentures and the Third Stock Purchase Date in the case of the Series B-3 Debentures.

     “Successful,” in respect of the Remarketing of a series of Debentures, has the meaning set
forth in the applicable Supplemental Indenture.

     “Supplemental Indenture” means:

     (i) with respect to the Series B-1 Debentures, the Sixth Supplemental Indenture to the
Base Indenture;

     (ii) with respect to the Series B-2 Debentures, the Seventh Supplemental Indenture to
the Base Indenture; and

     (iii) with respect to the Series B-3 Debentures, the Eighth Supplemental Indenture to
the Base Indenture;

each dated as of the date hereof, between the Company and the Trustee, as amended or supplemented
from time to time. When used in connection with any series of Debentures, the term “applicable
Supplemental Indenture” means the Supplemental Indenture under which such series of Debentures is
issued.

     “Termination Date” means the date, if any, on which a Termination Event occurs.

     “Termination Event” means the occurrence of any of the following events:

     (i) at any time on or prior to the Third Stock Purchase Date, a judgment, decree or
court order shall have been entered granting relief under the Bankruptcy Code, adjudicating
the Company to be insolvent, or approving as properly filed a petition seeking
reorganization or liquidation of the Company or any other similar applicable federal or
state law and if such judgment, decree or order shall have been entered more than 60 days
prior to the Third Stock Purchase Date, such decree or order shall have continued
undischarged and unstayed for a period of 60 days;

     (ii) at any time on or prior to the Third Stock Purchase Date, a judgment, decree or
court order for the appointment of a receiver or liquidator or trustee or assignee in
bankruptcy or insolvency of the Company or of its property, or for the termination or
liquidation of its affairs, shall have been entered and if such judgment, decree or order
shall have been entered more than 60 days prior to the Third Stock Purchase Date, such
judgment, decree or order shall have continued undischarged and unstayed for a period of 60
days; or

Purchase Contract Agreement

11

 

     (iii) at any time on or prior to the Third Stock Purchase Date, the Company shall file
a petition for relief under the Bankruptcy Code, or shall consent to the filing of a
bankruptcy proceeding against it, or shall file a petition or answer or consent seeking
reorganization or liquidation under the Bankruptcy Code or any other similar applicable
federal or state law, or shall consent to the filing of any such petition, or shall consent
to the appointment of a receiver or liquidator or trustee or assignee in bankruptcy or
insolvency of it or of its property, or shall make an assignment for the benefit of
creditors, or shall admit in writing its inability to pay its debts generally as they become
due.

     “Third Qualifying Treasury Security” means a zero-coupon U.S. Treasury security (CUSIP No.
912820NK9) having a principal amount of $1,000 and maturing on July 31, 2011.

     “Third Remarketing Settlement Date” means the third Business Day immediately succeeding the
date of a Successful Remarketing of the Series B-3 Debentures.

     “Third Stock Purchase Date” means August 1, 2011.

     “Threshold Appreciation Price” means $45.60 per share of Common Stock.

     “Trading Day” means a day on which the Common Stock (i) at the close of regular way trading
(not including extended or after hours trading) is not suspended from trading on any national or
regional securities exchange or association or over-the-counter market that is the primary market
for the trading the Common Stock at the close of business, and (ii) has traded at least once
regular way on the national securities exchange or association or over-the-counter market that is
the primary market for the trading of the Common Stock.

     “Treasury Portfolio” means, with respect to each Remarketing Settlement Date, a portfolio
consisting of:

     (i) U.S. Treasury securities (or principal or interest strips thereof) that mature on
or prior to the applicable Stock Purchase Date in an aggregate amount at maturity equal to
the product of $25 and the number of Corporate Units outstanding;

     (ii) solely with respect to the First Remarketing Settlement Date, U.S. Treasury
securities (or principal or interest strips thereof) that mature on or prior to the Interest
Payment Date immediately succeeding the commencement of the Remarketing Period in an
aggregate amount at maturity equal to the aggregate interest that would have accrued from
and including the Interest Payment Date immediately preceding the commencement of the
Remarketing Period to but excluding such Interest Payment Date (assuming no reset of the
interest rate) on the aggregate Principal Amount of the Series B-1 Debentures equal to $25
for each Corporate Unit outstanding; and

     (iii) U.S. Treasury securities (or principal or interest strips thereof) that mature on
or prior to the applicable Stock Purchase Date in an aggregate amount at maturity equal to
the aggregate interest that would have accrued from and including the applicable Interest
Payment Date immediately preceding such Remarketing Settlement Date (or, solely with respect
to the First Remarketing Settlement Date, immediately succeeding such Remarketing Settlement
Date) to but excluding the applicable Stock Purchase Date (assuming no reset of the interest
rate) on the

Purchase Contract Agreement

12

 

aggregate Principal Amount of the Series B-1 Debentures equal to $25 for each
Corporate Unit outstanding;

provided that if the Company in its sole discretion determines that such U.S. Treasury securities
are unavailable, the Company may substitute one or more short-term discount obligations issued by
an Affiliate of the Company that are issued on the applicable Remarketing Settlement Date, accrete
interest at an arm’s length rate, have the same aggregate principal amount at maturity as the U.S.
Treasury securities for which they are substituted and mature on or prior to the applicable dates
referred to above.

     “Treasury Portfolio Purchase Price” means, with respect to each Remarketing Settlement Date,
the lowest aggregate ask-side price quoted by a primary U.S. government securities dealer to the
Quotation Agent between 9:00 a.m. and 11:00 a.m., New York City time, on the date of a Successful
Remarketing for the purchase of the Treasury Portfolio for settlement on the applicable Remarketing
Settlement Date.

     “Treasury Units” means, following the substitution of Qualifying Treasury Securities for
Debentures as collateral to secure a Holder’s obligations under the applicable Stock Purchase
Contract, the collective rights and obligations of a Holder of a Treasury Unit Certificate in
respect of such Treasury Securities, subject to the Pledge thereof, and the related Stock Purchase
Contract.

     “Treasury Unit Certificate” means a certificate evidencing the rights and obligations of a
Holder in respect of the number of Treasury Units specified on such certificate.

     “Trustee” means The Bank of New York, as trustee pursuant to the Indenture, or its successor
in interest in such capacity, or any successor trustee appointed as provided in the Indenture.

     “Vice President” means any vice president, whether or not designated by a number or a word or
words added before or after the title “Vice President.”

     “VWAP” per share of the Common Stock on any Trading Day means the per share volume weighted
average price as displayed on Bloomberg (or any successor service) page AIG UN <Equity> AQR
in respect of the period from 9:30 a.m. to 4:00 p.m., New York City time, on the relevant Trading
Day; or, if such volume weighted average price is unavailable, VWAP means the market value per
share of Common Stock on such Trading Day as determined by a nationally recognized independent
investment banking firm retained for this purpose by the Company.

     (f) The following terms have the meanings set forth in the Section of this Agreement or in the
other agreement set forth below.

	 	 	 
	Act

	 	Section 1.04(a)
	Applicants

	 	Section 7.12(b)
	Cash Merger

	 	Section 5.04(b)(ii)
	Cash Merger Early Settlement

	 	Section 5.04(b)(ii)
	Cash Merger Early Settlement Date

	 	Section 5.04(b)(ii)
	Cash Merger Early Settlement Right

	 	Section 5.04(b)(ii)
	Collateral

	 	Pledge Agreement
	Collateral Account

	 	Pledge Agreement
	Constituent Person

	 	Section 5.04(b)(i)
	Deferred Contract Adjustment Payments

	 	Section 5.11(a)

Purchase Contract Agreement

13

 

	 	 	 
	Dividend Threshold Amount

	 	Section 5.04(a)(iv)
	Early Settlement

	 	Section 5.07(a)
	Early Settlement Amount

	 	Section 5.07(b)
	Early Settlement Date

	 	Section 5.07(b)
	Early Settlement Rate

	 	Section 5.07(c)
	Event of Default

	 	Indenture
	Exchange Property Unit

	 	Section 5.04(b)(i)
	expiration date

	 	Section 5.04(a)(v)
	Expiration Date

	 	Section 1.04(e)
	Expiration Time

	 	Section 5.04(a)(v)
	final judgment

	 	Section 5.10(g)
	Indemnitees

	 	Section 7.07(c)
	Pledged Debentures

	 	Pledge Agreement
	Pledged Treasury Securities

	 	Pledge Agreement
	Proceeds

	 	Pledge Agreement
	Purchase Price

	 	Section 5.01(a)
	Purchased Shares

	 	Section 5.04(a)(v)
	record date

	 	Section 5.04(a)
	Reorganization Event

	 	Section 5.04(b)(i)
	Security Register

	 	Section 3.05
	Security Registrar

	 	Section 3.05
	Senior Debt

	 	Each Supplemental Indenture
	Settlement Rate

	 	Section 5.01(a)
	Settlement with Cash

	 	Section 5.02(b)
	Special Record Date

	 	Section 5.11(b)
	Stock Purchase Contract Settlement Fund

	 	Section 5.03
	UCC

	 	Pledge Agreement

     Section 1.02 Compliance Certificates and Opinions.

     Except as otherwise expressly provided by this Agreement, upon any application or request by
the Company to the Purchase Contract Agent to take any action in accordance with any provision of
this Agreement, the Company shall furnish to the Purchase Contract Agent an Officers’ Certificate
stating that all conditions precedent, if any, provided for in this Agreement relating to the
proposed action have been complied with, if requested by the Purchase Contract Agent.

     Section 1.03 Form of Documents Delivered to Purchase Contract Agent.

     In any case where several matters are required to be certified by, or covered by an opinion
of, any specified Person, it is not necessary that all such matters be certified by, or covered by
the opinion of, only one such Person, or that they be so certified or covered by only one document,
but one such Person
may certify or give an opinion with respect to some matters and one or more other such Persons
as to other matters, and any such Person may certify or give an opinion as to such matters in one
or several documents. Any certificate or opinion of an officer of the Company may be based, insofar
as it relates to legal matters, upon a certificate or opinion of, or representations by, counsel,
unless such officer knows, or in the exercise of reasonable care should know, that the certificate
or opinion or representations with respect to the matters upon which its certificate or opinion is
based are erroneous. Any such certificate or

Purchase Contract Agreement

14

 

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 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 Agreement, they may,
but need not, be consolidated and form one instrument.

     Section 1.04 Acts of Holders; Record Dates.

     (a) Any request, demand, authorization, direction, notice, consent, waiver or other action
provided by this Agreement to be given or taken by Holders may be embodied in and evidenced by one
or more instruments of substantially similar tenor signed by such Holders in person or by an agent
duly appointed in writing; and, except as herein otherwise expressly provided, such action shall
become effective when such instrument or instruments are delivered to the Purchase Contract Agent
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 Agreement and
(subject to Section 7.01) conclusive in favor of the Purchase Contract Agent 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 in any manner that the Purchase Contract Agent deems sufficient.

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

     (d) Any request, demand, authorization, direction, notice, consent, waiver or other Act of the
Holder of any Equity Units shall bind every future Holder of the same Equity Units and the Holder
of every Certificate evidencing such Equity Units 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 Purchase Contract Agent or the Company in reliance thereon, whether or not notation of
such action is made upon such Certificate.

     (e) The Company may set any date as a record date for the purpose of determining the Holders
of Outstanding Equity Units entitled to give, make or take any request, demand, authorization,
direction, notice, consent, waiver or other action provided or permitted by this Agreement to be
given, made or taken by Holders of Equity Units. If any record date is set pursuant to this
paragraph, the Holders of the Outstanding Corporate Units and the Outstanding Treasury Units, as
the case may be, on such record date, and no other Holders, shall be entitled to take the relevant
action with respect to the Corporate Units or the Treasury Units, as the case may be, whether or
not such Holders remain Holders after such record date; provided that no such action shall be
effective hereunder unless taken prior to or on
the applicable Expiration Date (as defined below) by Holders of the requisite number of
Outstanding Equity Units on such record date. The Company may establish the same or different
record dates and expiration dates for Holders of Corporate Units and Treasury Units. Nothing
contained in this paragraph shall be construed to prevent the Company from setting a new record
date for any action for which a record date has previously been set pursuant to this paragraph
(whereupon the record date previously set shall automatically and with no action by any Person be
cancelled and be of no effect), and nothing contained in this paragraph shall be construed to
render ineffective any action taken by Holders of the

Purchase Contract Agreement

15

 

requisite number of Outstanding Equity Units
on the date such action is taken. Promptly after any record date is set pursuant to this paragraph,
the Company, at its own expense, shall cause notice of such record date, the proposed action by
Holders and the applicable Expiration Date to be given to the Purchase Contract Agent in writing
and to each Holder of Equity Units in the manner set forth in Section 1.06.

     With respect to any record date set pursuant to this Section 1.04(e), the Company may
designate any date as the “Expiration Date” and from time to time may change the Expiration Date to
any earlier or later day; provided that no such change shall be effective unless notice of the
proposed new Expiration Date is given to the Purchase Contract Agent in writing, and to each Holder
of Equity Units in the manner set forth in Section 1.06, prior to or on the existing Expiration
Date. If an Expiration Date is not designated with respect to any record date set pursuant to this
Section, the Company shall be deemed to have initially designated the 180th day after such record
date as the Expiration Date with respect thereto, subject to its right to change the Expiration
Date as provided in this paragraph. Notwithstanding the foregoing, no Expiration Date shall be
later than the 180th day after the applicable record date.

     Section 1.05 Notices.

     Any notice or communication is duly given if in writing and delivered in person or mailed by
first-class mail (registered or certified, return receipt requested) or overnight air courier
guaranteeing next day delivery, to the others’ address; provided that notice shall be deemed given
to the Purchase Contract Agent only upon receipt thereof:

     If to the Purchase Contract Agent:

The Bank of New York

101 Barclay Street-8W

New York, New York 10286

Attention: Corporate Trust Administration

Telephone: (212) 815-2923

Facsimile: (212) 815-5704

     If to the Company:

American International Group, Inc.

70 Pine Street

New York, New York 10270

Attention: Secretary

Facsimile: (212) 785-1584

     If to the Collateral Agent:

Wilmington Trust Company

Rodney Square North

1100 North Market Street

Wilmington, Delaware 19890

Attention: Corporate Trust Administration

Telephone: (302) 636-6453

Facsimile: (302) 636-4140

Purchase Contract Agreement

16

 

     If to the Trustee:

The Bank of New York

101 Barclay Street-8W

New York, New York 10286

Attention: Corporate Trust Administration

Telephone: (212) 815-2923

Facsimile: (212) 815-5704

     The Purchase Contract Agent shall send to the Trustee at the telecopier number set forth above
a copy of any notices in the form of Exhibits C, D, E or F it sends or receives.

     Section 1.06 Notice to Holders; Waiver.

     Where this Agreement 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 its 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
Agreement 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 Purchase Contract
Agent, 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 Purchase Contract Agent shall constitute a sufficient notification for every
purpose hereunder.

     Section 1.07 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 1.08 Successors and Assigns.

     All covenants and agreements in this Agreement by the Company and the Purchase Contract Agent
shall bind their respective successors and assigns, whether so expressed or not.

     Section 1.09 Separability Clause.

     In case any provision in this Agreement or in any Equity Unit shall be invalid, illegal or
unenforceable, the validity, legality and enforceability of the remaining provisions hereof and
thereof shall not in any way be affected or impaired thereby.

Purchase Contract Agreement

17

 

     Section 1.10 Benefits of Agreement.

     Nothing contained in this Agreement or in the Equity Units, express or implied, shall give to
any Person, other than the parties hereto and their successors hereunder and, to the extent
provided hereby, the Holders, any benefits or any legal or equitable right, remedy or claim under
this Agreement. The Holders from time to time shall be beneficiaries of this Agreement and shall
be bound by all of the terms and conditions hereof and of the Equity Units evidenced by their
Certificates by their acceptance of delivery of such Certificates.

     Section 1.11 Governing Law.

     THIS AGREEMENT AND THE EQUITY UNITS SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH,
THE LAWS OF THE STATE OF NEW YORK. The Company, the Purchase Contract Agent and the Holders from
time to time of the Equity Units, acting through the Purchase Contract Agent as their
attorney-in-fact, hereby submit to the exclusive jurisdiction of the United States District Court
for the Southern District of New York and of any New York state court sitting in New York City for
the purposes of all actions, suits or proceedings arising out of or relating to this Agreement or
the transactions contemplated hereby. The Company, the Purchase Contract Agent and the Holders from
time to time of the Equity Units, acting through the Purchase Contract Agent as their
attorney-in-fact, irrevocably waive, to the fullest extent permitted by applicable law, any
objection that they may now or hereafter have to the laying of the venue of any such proceeding
brought in such a court and any claim that any such proceeding brought in such a court has been
brought in an inconvenient forum.

     Section 1.12 Legal Holidays.

     In any case where any Payment Date shall not be a Business Day (notwithstanding any other
provision of this Agreement or the Equity Units), Contract Adjustment Payments or other
distributions shall not be paid on such date, but Contract Adjustment Payments or such other
distributions shall be paid on the next succeeding Business Day with the same force and effect as
if made on such Payment Date. No interest shall accrue or be payable by the Company or to any
Holder for the period from and after any such Payment Date.

     In any case where any Stock Purchase Date, Early Settlement Date or Cash Merger Early
Settlement Date shall not be a Business Day (notwithstanding any other provision of this Agreement
or the Equity Units), Stock Purchase Contracts shall not be performed and Early Settlement and Cash
Merger Early Settlement shall not be effected on such date, but Stock Purchase Contracts shall be
performed or Early Settlement or Cash Merger Early Settlement shall be effected, as applicable, on
the next succeeding Business Day with the same force and effect as if made on such Stock Purchase
Date, Early Settlement Date or Cash Merger Early Settlement Date, as applicable.

     Section 1.13 Counterparts.

     This Agreement may be executed in any number of counterparts by the parties hereto on separate
counterparts, each of which, when so executed and delivered, shall be deemed an original, but all
such counterparts shall together constitute one and the same instrument.

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     Section 1.14 Inspection of Agreement.

     A copy of this Agreement shall be available at all reasonable times during normal business
hours at the Corporate Trust Office for inspection by any Holder or Beneficial Owner of an Equity
Unit.

     Section 1.15 Appointment of Financial Institution as Agent for the Company.

     The Company may appoint a financial institution (which may be the Collateral Agent) to act as
its agent in performing its obligations and in accepting and enforcing performance of the
obligations of the Purchase Contract Agent and the Holders, under this Agreement and the Stock
Purchase Contracts, by giving notice of such appointment in the manner provided in Section 1.05.
Any such appointment shall not relieve the Company in any way from its obligations hereunder.

     Section 1.16 No Waiver.

     No failure on the part of the Company, the Purchase Contract Agent, the Collateral Agent, the
Securities Intermediary or any of their respective agents to exercise, and no course of dealing
with respect to, and no delay in exercising, any right, power or remedy hereunder shall operate as
a waiver thereof; nor shall any single or partial exercise by the Company, the Purchase Contract
Agent, the Collateral Agent, the Securities Intermediary or any of their respective agents of any
right, power or remedy hereunder preclude any other or further exercise thereof or the exercise of
any other right, power or remedy. The remedies herein are cumulative and are not exclusive of any
remedies provided by law.

     Section 1.17 Force Majeure.

     In no event shall the Purchase Contract Agent be responsible or liable for any failure or
delay in the performance of its obligations hereunder arising out of or caused by, directly or
indirectly, forces beyond its control, including, without limitation, strikes, work stoppages,
accidents, acts of war or terrorism, civil or military disturbances, nuclear or natural
catastrophes or acts of God, and interruptions, loss or malfunctions of utilities, communications
or computer (software and hardware) services; it being understood that the Purchase Contract Agent
shall use reasonable efforts which are consistent with accepted practices in the banking industry
to resume performance as soon as practicable under the circumstances.

ARTICLE II

CERTIFICATE FORMS

     Section 2.01 Forms of Certificates Generally.

     The Certificates (including the Stock Purchase Contract forming part of each Equity Unit
evidenced thereby) shall be in substantially the form set forth in Exhibit A (in the case of
Certificates evidencing Corporate Units) or Exhibit B (in the case of Certificates evidencing
Treasury Units), with such letters, numbers or other marks of identification or designation and
such legends or endorsements printed, lithographed or engraved thereon as may be required by the
rules of any securities exchange on which the Equity Units are listed or any depositary therefor,
or as may be determined by the officers of the Company executing such Certificates, as evidenced by
their execution of the Certificates.

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     The definitive Certificates shall be produced in any manner as determined by the officers of
the Company executing the Equity Units evidenced by such Certificates, consistent with the
provisions of this Agreement, as evidenced by their execution thereof.

     Every Global Certificate authenticated, executed on behalf of the Holders and delivered
hereunder shall bear a legend substantially in the form set forth in Exhibit A and Exhibit B for a
Global Certificate.

     Section 2.02 Form of Purchase Contract Agent’s Certificate of Authentication.

     The form of the Purchase Contract Agent’s certificate of authentication of the Equity Units
shall be in substantially the form set forth on the form of the applicable Certificates.

ARTICLE III

THE EQUITY UNITS

     Section 3.01 Amount; Form and Denominations.

     The aggregate number of Equity Units evidenced by Certificates authenticated, executed on
behalf of the Holders and delivered hereunder is limited to 78,400,000, except for Certificates
authenticated, executed and delivered upon registration of transfer of, in exchange for, or in lieu
of, other Certificates pursuant to Section 3.04, Section 3.05, Section 3.09, Section 3.10, Section
3.13, Section 3.14, Section 5.07(f) or Section 8.05.

     The Certificates shall be issuable only in registered form and only in the Stated Amounts of a
single Corporate Unit or Treasury Unit and any integral multiple thereof.

     Section 3.02 Rights and Obligations Evidenced by the Certificates.

     Each Corporate Unit Certificate shall evidence the number of Corporate Units specified
therein, with each such Corporate Unit representing one Stock Purchase Contract and:

     (i) prior to the First Stock Purchase Date or, if earlier, the First Remarketing
Settlement Date, a 1/40, or 2.5%, undivided beneficial ownership interest in a Series B-1
Debenture with an aggregate Principal Amount of $1,000;

     (ii) prior to the Second Stock Purchase Date or, if earlier, the Second Remarketing
Settlement Date, a 1/40, or 2.5%, undivided beneficial ownership interest in a Series B-2
Debenture with an aggregate Principal Amount of $1,000;

     (iii) prior to the Third Stock Purchase Date or, if earlier, Third Remarketing
Settlement Date, a 1/40, or 2.5%, undivided beneficial ownership interest in a Series B-3
Debenture with an aggregate Principal Amount of $1,000; and

     (iv) after the Remarketing Settlement Date for any series of Debentures and prior to
the applicable Stock Purchase Date, the undivided beneficial ownership interest
corresponding to one Corporate Unit in the Treasury Portfolio purchased with the net
proceeds of the Remarketing;

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in each case subject to the Pledge thereof.

     The Purchase Contract Agent is hereby authorized, as attorney-in-fact for, and on behalf of,
the Holders of Corporate Units, to pledge, pursuant to the Pledge Agreement, the Debentures forming
part of such Corporate Units, to the Collateral Agent for the benefit of the Company, and to grant
to the Collateral Agent, for the benefit of the Company, a security interest in the right, title
and interest of such Holder:

     (i) the Series B-1 Debentures to secure the obligation of the Holders under the Stock
Purchase Contracts to purchase shares of Common Stock on the First Stock Purchase Date;

     (ii) the Series B-2 Debentures to secure the obligation of the Holders under the Stock
Purchase Contracts to purchase shares of Common Stock on the Second Stock Purchase Date;

     (iii) the Series B-3 Debentures to secure the obligation of the Holders under the Stock
Purchase Contracts to purchase shares of Common Stock on the Third Stock Purchase Date; and

     (iv) after the Remarketing Settlement Date for any series of Debentures and prior to
the applicable Stock Purchase Date, an undivided beneficial ownership interest in the
Treasury Portfolio purchased with the net proceeds of the Remarketing.

     Upon the creation of Treasury Units pursuant to Section 3.13, each Treasury Unit Certificate
shall evidence the number of Treasury Units specified therein, with each such Treasury Units
representing one Stock Purchase Contract and:

     (i) prior to the First Stock Purchase Date, a 1/40, or 2.5%, undivided beneficial
ownership interest in the First Qualifying Treasury Security;

     (ii) prior to the Second Stock Purchase Date, a 1/40, or 2.5%, undivided beneficial
ownership interest in the Second Qualifying Treasury Security; and

     (iii) prior to the Third Stock Purchase Date, a 1/40, or 2.5%, undivided beneficial
ownership interest in the Third Qualifying Treasury Security;

in each case subject to the Pledge thereof.

     The Purchase Contract Agent is hereby authorized, as attorney-in-fact for, and on behalf of,
the Holder of each Treasury Unit, to pledge, pursuant to the Pledge Agreement, such Holder’s
interest in each Qualifying Treasury Security forming a part of such Treasury Unit to the
Collateral Agent, for the benefit of the Company, and to grant to the Collateral Agent, for the
benefit of the Company, a security interest in the right, title and interest of such Holder to
secure the obligation of the Holder under each Stock Purchase Contract to purchase shares of Common
Stock on each Stock Purchase Date.

     Such Stock Purchase Contract shall not entitle the Holder of a Equity Units to any of the
rights of a holder of shares of Common Stock, prior to the delivery of shares of Common Stock under
each Stock Purchase Contract, including, without limitation, the right to vote or receive any
dividends or other payments or to consent or to receive notice as a stockholder in respect of the
meetings of stockholders or for the election of directors of the Company or for any other matter,
or any other rights whatsoever as a stockholder of the Company. A Holder will become a holder of
record of shares of Common Stock

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delivered pursuant to a Stock Purchase Contract at the close of business on the date the
shares of Common Stock are delivered by the Company to the Holder or, if the Company’s stock record
book is not open on that day, at the opening of business on the next Business Day the stock record
is open.

     Section 3.03 Execution, Authentication, Delivery and Dating.

     Subject to the provisions of Section 3.13 and Section 3.14, upon the execution and delivery of
this Agreement, and at any time and from time to time thereafter, the Company may deliver
Certificates executed by the Company to the Purchase Contract Agent for authentication, execution
on behalf of the Holders and delivery, together with an Issuer Order from the Company for
authentication of such Certificates, and the Purchase Contract Agent in accordance with such Issuer
Order shall authenticate, execute on behalf of the Holders and deliver such Certificates.

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

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

     No Stock Purchase Contract evidenced by a Certificate shall be valid until such Certificate
has been executed on behalf of the Holder by the manual signature of an authorized officer of the
Purchase Contract Agent, as such Holder’s attorney-in-fact. Such signature by an authorized
officer of the Purchase Contract Agent shall be conclusive evidence that the Holder of such
Certificate has entered into the Stock Purchase Contracts evidenced by such Certificate.

     Each Certificate shall be dated the date of its authentication.

     No Certificate shall be entitled to any benefit under this Agreement or be valid or obligatory
for any purpose unless there appears on such Certificate a certificate of authentication
substantially in the form provided for herein executed by an authorized officer of the Purchase
Contract Agent by manual signature, and such certificate upon any Certificate shall be conclusive
evidence, and the only evidence, that such Certificate has been duly authenticated and delivered
hereunder.

     Section 3.04 Temporary Certificates.

     Pending the preparation of definitive Certificates, the Company shall execute and deliver to
the Purchase Contract Agent, and the Purchase Contract Agent shall authenticate, execute on behalf
of the Holders, and deliver, in lieu of such definitive Certificates, temporary Certificates that
are in substantially the form set forth in Exhibit A or Exhibit B, as the case may be, with such
letters, numbers or other marks of identification or designation and such legends or endorsements
printed, lithographed or engraved thereon as may be required by the rules of any securities
exchange on which the Corporate Units or Treasury Units, as the case may be, are listed, or as may
be determined by the officers of the Company executing such Certificates, as evidenced by their
execution of the Certificates.

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     If temporary Certificates are issued, the Company will cause definitive Certificates to be
prepared without unreasonable delay. After the preparation of definitive Certificates, the
temporary Certificates shall be exchangeable for definitive Certificates upon surrender of the
temporary Certificates at the Corporate Trust Office, at the expense of the Company and without
charge to the Holder. Upon surrender for cancellation of any one or more temporary Certificates,
the Company shall execute and deliver to the Purchase Contract Agent, and the Purchase Contract
Agent shall authenticate, execute on behalf of the Holder, and deliver in exchange therefor, one or
more definitive Certificates of like tenor and denominations and evidencing a like number of Equity
Units as the temporary Certificate or Certificates so surrendered. Until so exchanged, the
temporary Certificates shall in all respects evidence the same benefits and the same obligations
with respect to the Equity Units evidenced thereby as definitive Certificates.

     Section 3.05 Registration; Registration of Transfer and Exchange.

     The Purchase Contract Agent shall keep at the Corporate Trust Office a register (the “Security
Register”) in which, subject to such reasonable regulations as it may prescribe, the Purchase
Contract Agent shall provide for the registration of Certificates and of transfers of Certificates
(the Purchase Contract Agent, in such capacity, the “Security Registrar”). The Security Registrar
shall record separately the registration and transfer of the Certificates evidencing Corporate
Units and Treasury Units.

     Upon surrender for registration of transfer of any Certificate at the Corporate Trust Office,
the Company shall execute and deliver to the Purchase Contract Agent, and the Purchase Contract
Agent shall authenticate, execute on behalf of the designated transferee or transferees, and
deliver, in the name of the designated transferee or transferees, one or more new Certificates of
any authorized Stated Amounts, of like tenor, and evidencing a like number of Corporate Units or
Treasury Units, as the case may be.

     At the option of the Holder, Certificates evidencing Corporate Units or Treasury Units may be
exchanged for other Certificates, of any authorized Stated Amounts and evidencing a like number of
Corporate Units or Treasury Units, as the case may be, upon surrender of the Certificates to be
exchanged at the Corporate Trust Office. Whenever any Certificates are so surrendered for
exchange, the Company shall execute and deliver to the Purchase Contract Agent, and the Purchase
Contract Agent shall authenticate, execute on behalf of the Holder, and deliver the Certificates
that the Holder making the exchange is entitled to receive.

     All Certificates issued upon any registration of transfer or exchange of a Certificate shall
evidence the ownership of the same number of Corporate Units or Treasury Units, as the case may be,
and be entitled to the same benefits and subject to the same obligations under this Agreement as
the Corporate Units or Treasury Units, as the case may be, evidenced by the Certificate surrendered
upon such registration of transfer or exchange.

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

     No service charge shall be made for any registration of transfer or exchange of a Certificate,
but the Company and the Security Registrar may require payment from the Holder of a sum sufficient
to cover any tax or other governmental charge that may be imposed in connection with any
registration of

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transfer or exchange of Certificates, other than any exchanges pursuant to Section 3.04 and
Section 8.05 not involving any transfer.

     Notwithstanding the foregoing, the Company shall not be obligated to execute and deliver to
the Purchase Contract Agent, and the Purchase Contract Agent shall not be obligated to
authenticate, execute on behalf of the Holder and deliver any Certificate in exchange for any other
Certificate presented or surrendered for registration of transfer or for exchange on or after the
Business Day immediately preceding the earliest to occur of any Early Settlement Date with respect
to the Equity Units evidenced by such Certificate, any Cash Merger Early Settlement Date with
respect to the Equity Units evidenced by such Certificate, the Third Stock Purchase Date or the
Termination Date. In lieu of delivery of a new Certificate, upon satisfaction of the applicable
conditions specified above in this Section and receipt of appropriate registration or transfer
instructions from such Holder, the Purchase Contract Agent shall:

     (i) if the Third Stock Purchase Date or an Early Settlement Date or a Cash Merger Early
Settlement Date with respect to such other Certificate (or portion thereof) has occurred,
deliver to such Holder the shares of Common Stock issuable in respect of the Stock Purchase
Contracts forming a part of the Equity Units evidenced by such other Certificate (or portion
thereof); or

     (ii) if a Termination Event, Early Settlement or Cash Merger Early Settlement shall
have occurred, transfer each series of Debentures with respect to which the applicable Stock
Purchase Date has not yet occurred (or an interest in the Treasury Portfolio if the
Remarketing Settlement Date with respect to such series has occurred) or, in the case of
Treasury Units, the applicable Qualifying Treasury Securities pledged in lieu of the
Debentures, as the case may be, evidenced thereby, to such Holder, in each case subject to
the applicable conditions and in accordance with the applicable provisions of Section 3.15
and Article V.

     Section 3.06 Notices to Holders.

     Whenever a notice or other communication to the Holders is required to be given under this
Agreement, the Company, the Company’s agent or the Purchase Contract Agent, as the case may be,
shall give such notices and communications to the Holders and, with respect to any Equity Units
registered in the name of the Depositary or the nominee of the Depositary, the Company or the
Company’s agent shall, except as set forth herein, have no obligations to the Beneficial Owners.

     Section 3.07 Book-Entry Interests.

     The Certificates will be issued in the form of one or more fully registered Global
Certificates, to be delivered to the Depositary, as agent for the Company, or its custodian by, or
on behalf of, the Company. The Company hereby designates DTC as the initial Depositary. Such Global
Certificates shall initially be registered on the Security Register in the name of Cede & Co., the
nominee of the Depositary, and no Beneficial Owner will receive a definitive Certificate
representing such Beneficial Owner’s interest in such Global Certificate, except as provided in
Section 3.09. The Purchase Contract Agent shall enter into an agreement with the Depositary if so
requested by the Company. Following the issuance of such Global Certificates and unless and until
definitive, fully registered Certificates have been issued to Beneficial Owners pursuant to Section
3.09:

     (i) the provisions of this Section 3.07 shall be in full force and effect;

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     (ii) the Company shall be entitled to deal with the Depositary for all purposes of this
Agreement (including, without limitation, making Contract Adjustment Payments and receiving
approvals, votes or consents hereunder) as the Holder of the Equity Units or any Stock
Purchase Contract or Debentures that are components thereof and the sole holder of the
Global Certificates and shall have no obligation to the Beneficial Owners;

     (iii) to the extent that the provisions of this Section 3.07 conflict with any other
provisions of this Agreement, the provisions of this Section 3.07 shall control; and

     (iv) the rights of the Beneficial Owners shall be exercised only through the Depositary
and shall be limited to those established by law and agreements between such Beneficial
Owners and the Depositary or the Depositary Participants.

     Transfers of Equity Units evidenced by Global Certificates shall be made through the
facilities of the Depositary, and any cancellation of, or increase or decrease in the number of,
such Equity Units (including the creation of Treasury Units and the recreation of Corporate Units
pursuant to Section 3.13 and Section 3.14 respectively) shall be accomplished by making appropriate
annotations on the Schedule of Increases or Decreases attached to such Global Certificate.

     Section 3.08 Appointment of Successor Depositary.

     If the Depositary elects to discontinue its services as securities depositary with respect to
the Equity Units, the Company may, in its sole discretion, appoint a successor Depositary with
respect to the Equity Units.

     Section 3.09 Definitive Certificates.

     If:

     (i) the Depositary notifies the Company that it is unwilling or unable to continue its
services as securities depositary with respect to the Global Certificates and no successor
Depositary has been appointed pursuant to Section 3.08 within 90 days after such notice;

     (ii) the Depositary ceases to be a “clearing agency” registered under Section 17A of
the Exchange Act when the Depositary is required to be so registered to act as the
Depositary and so notifies the Company, and no successor Depositary has been appointed
pursuant to Section 3.08 within 90 days after the Company learns that the Depositary has
ceased to be so registered; or

     (iii) to the extent permitted by the Depositary, the Company determines, in its sole
discretion, at any time that the Equity Units shall no longer be represented by Global
Certificates and shall inform such Depositary of such determination and Depositary
Participants elect to withdraw their beneficial interests in the Equity Units from such
Depositary, following notification by the Depositary of their right to do so; or

     (iv) there shall have occurred and be continuing an Event of Default with respect to
the Debentures;

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then (x) definitive Certificates shall be prepared by the Company with respect to such Equity Units
and delivered to the Purchase Contract Agent and (y) upon surrender of the Global Certificates
representing the Equity Units by the Depositary, accompanied by registration instructions, the
Company shall cause definitive Certificates to be delivered to Beneficial Owners in accordance with
the instructions of the Depositary. The Company and the Purchase Contract Agent shall not be liable
for any delay in delivery of such instructions and may conclusively rely on and shall be authorized
and protected in relying on, such instructions. Each definitive Certificate so delivered shall
evidence Equity Units of the same kind and tenor as the Global Certificate so surrendered in
respect thereof.

     Section 3.10 Mutilated, Destroyed, Lost and Stolen Certificates.

     If any mutilated Certificate is surrendered to the Purchase Contract Agent, the Company shall
execute and deliver to the Purchase Contract Agent, and the Purchase Contract Agent shall
authenticate, execute on behalf of the Holder, and deliver in exchange therefor, a new Certificate,
evidencing the same number of Corporate Units or Treasury Units, as the case may be, and bearing a
Certificate number not contemporaneously outstanding.

     If there shall be delivered to the Company and the Purchase Contract Agent (i) evidence to
their satisfaction of the destruction, loss or theft of any Certificate, and (ii) such security or
indemnity as may be required by them to hold each of them and any agent of any of them harmless,
then, in the absence of notice to the Company or the Purchase Contract Agent that such Certificate
has been acquired by a protected purchaser, the Company shall execute and deliver to the Purchase
Contract Agent, and the Purchase Contract Agent shall authenticate, execute on behalf of the
Holder, and deliver to the Holder, in lieu of any such destroyed, lost or stolen Certificate, a new
Certificate, evidencing the same number of Corporate Units or Treasury Units, as the case may be,
and bearing a Certificate number not contemporaneously outstanding.

     Notwithstanding the foregoing, the Company shall not be obligated to execute and deliver to
the Purchase Contract Agent, and the Purchase Contract Agent shall not be obligated to
authenticate, execute on behalf of the Holder, and deliver to the Holder, a Certificate on or after
the Business Day immediately preceding the earliest of any Early Settlement Date with respect to
such lost, stolen, destroyed or mutilated Certificate, any Cash Merger Early Settlement Date with
respect to such lost, stolen, destroyed or mutilated Certificate, the Third Stock Purchase Date or
the Termination Date. In lieu of delivery of a new Certificate, upon satisfaction of the applicable
conditions specified above in this Section and receipt of appropriate registration or transfer
instructions from such Holder, the Purchase Contract Agent shall:

     (i) if the Third Stock Purchase Date or Early Settlement Date or Cash Merger Early
Settlement Date with respect to such lost, stolen, destroyed or mutilated Certificate has
occurred, deliver to such Holder the shares of Common Stock issuable in respect of the Stock
Purchase Contracts forming a part of the Equity Units evidenced by such Certificate; or

     (ii) if a Termination Event or a Cash Merger Early Settlement or an Early Settlement
with respect to such lost, stolen, destroyed or mutilated Certificate shall have occurred,
transfer each series of Debentures with respect to which the Stock Purchase Date has not yet
occurred (or an interest in the Treasury Portfolio if the Remarketing Settlement Date with
respect to such series has occurred), evidenced thereby, in each case subject to the
applicable conditions and in accordance with the applicable provisions of Section 3.15 and
Article V.

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     Upon the issuance of any new Certificate under this Section, the Company and the Purchase
Contract Agent may require the payment by the Holder of a sum sufficient to cover any tax or other
governmental charge that may be imposed in relation thereto and any other fees and expenses
(including, without limitation, the fees and expenses of the Purchase Contract Agent) connected
therewith.

     Every new Certificate issued pursuant to this Section in lieu of any mutilated, destroyed,
lost or stolen Certificate shall constitute an original additional contractual obligation of the
Company and of the Holder in respect of the Equity Units evidenced thereby, whether or not the
mutilated, destroyed, lost or stolen Certificate (and the Equity Units evidenced thereby) shall be
at any time enforceable by anyone, and shall be entitled to all the benefits and be subject to all
the obligations of this Agreement equally and proportionately with any and all other Certificates
delivered 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 Certificates.

     Section 3.11 Persons Deemed Owners.

     Prior to due presentment of a Certificate for registration of transfer, the Company and the
Purchase Contract Agent, and any agent of the Company, the Security Registrar or the Purchase
Contract Agent, may treat the Person in whose name such Certificate is registered as the owner of
the Equity Units evidenced thereby for purposes of (subject to any applicable record date) any
payment or distribution on the Debentures, payment of Contract Adjustment Payments and performance
of the Stock Purchase Contracts and for all other purposes whatsoever in connection with such
Equity Units, whether or not such payment, distribution, or performance shall be overdue and
notwithstanding any notice to the contrary, and none of the Company, the Security Registrar or the
Purchase Contract Agent, nor any agent of the Company, the Security Registrar or the Purchase
Contract Agent, shall be affected by notice to the contrary.

     With respect to any Global Certificate, nothing contained herein shall prevent the Company,
the Purchase Contract Agent or any agent of the Company or the Purchase Contract Agent, from giving
effect to any written certification, proxy or other authorization furnished by the Depositary (or
its nominee), as a Holder, with respect to such Global Certificate, or impair, as between such
Depositary and the related Beneficial Owner, the operation of customary practices governing the
exercise of rights of the Depositary (or its nominee) as Holder of such Global Certificate. None of
the Company, the Purchase Contract Agent or any agent of the Company or the Purchase Contract Agent
will have any responsibility or liability for any aspect of the records relating to or payments
made on account of beneficial ownership interests of a Global Certificate or maintaining,
supervising or reviewing any records relating to such beneficial ownership interests.

     Section 3.12 Cancellation.

     All Certificates surrendered for delivery of shares of Common Stock on or after the Third
Stock Purchase Date or upon the transfer of Debentures or for delivery of Debentures or Qualifying
Treasury Securities, as the case may be, after the occurrence of a Termination Event or pursuant to
a Notice to Settle with Cash in connection with the Third Stock Purchase Date, an Early Settlement
or a Cash Merger Early Settlement, or upon the registration of transfer or exchange of Equity
Units, or a Collateral Substitution or the recreation of Corporate Units shall, if surrendered to
any Person other than the Purchase Contract Agent, be delivered to the Purchase Contract Agent
along with appropriate written

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instructions from the Company regarding the cancellation thereof and, if not already
cancelled, shall be promptly cancelled by it. The Company may at any time deliver to the Purchase
Contract Agent for cancellation any Certificates previously authenticated, executed and delivered
hereunder that the Company may have acquired in any manner whatsoever, and all Certificates so
delivered shall, upon an Issuer Order, be promptly cancelled by the Purchase Contract Agent. No
Certificates shall be authenticated, executed on behalf of the Holder and delivered in lieu of or
in exchange for any Certificates cancelled as provided in this Section. All cancelled Certificates
held by the Purchase Contract Agent shall be disposed of in accordance with its customary
practices.

     If the Company or any Affiliate of the Company shall acquire any Certificate, such acquisition
shall not operate as a cancellation of such Certificate unless and until such Certificate is
delivered to the Purchase Contract Agent cancelled or for cancellation.

     Section 3.13 Creation of Treasury Units by Substitution of Qualifying Treasury Securities.

     Subject to the conditions set forth in this Agreement, a Holder may, at any time (other than
during a Blackout Period) from and after the date of this Agreement effect a Collateral
Substitution and separate the Pledged Debentures from the related Stock Purchase Contracts in
respect of all or a portion of such Holder’s Corporate Units by substituting Qualifying Treasury
Securities or portions thereof for such Pledged Debentures of each series in accordance with the
procedures set forth below; provided that Holders may make Collateral Substitutions only in
integral multiples of 40 Corporate Units. To effect such substitution, the Holder must:

     (i) deposit with the Collateral Agent each applicable Qualifying Treasury Security; and

     (ii) transfer 40 Corporate Units or an integral multiple thereof to the Purchase
Contract Agent accompanied by a notice to the Purchase Contract Agent, substantially in the
form of Exhibit C, (A) stating that the Holder has deposited the relevant amount of
applicable Qualifying Treasury Securities with the Securities Intermediary for credit to the
Collateral Account and (B) instructing the Purchase Contract Agent to instruct the
Collateral Agent to release the Pledged Debentures underlying such Corporate Units,
whereupon the Purchase Contract Agent shall promptly provide an instruction to such effect
to the Collateral Agent, substantially in the form of Exhibit A to the Pledge Agreement.

Upon receipt of the applicable Qualifying Treasury Securities described in clause (i) above and the
instruction described in clause (B) above, in accordance with the terms of the Pledge Agreement,
the Collateral Agent will cause the Securities Intermediary to effect the release of such Pledged
Debentures from the Pledge and the transfer of such Debentures to the Purchase Contract Agent on
behalf of the Holder free and clear of the Company’s security interest therein. Upon receipt of
such Debentures, the Purchase Contract Agent shall promptly:

     (i) cancel the related Corporate Units;

     (ii) transfer to the Holder the Debentures of each series with respect to which the
Stock Purchase Date has not yet occurred (such Debentures shall be tradeable as separate
securities, independent of the resulting Treasury Units); and

Purchase Contract Agreement

28

 

     (iii) deliver Treasury Units in book-entry form, or if applicable, authenticate,
execute on behalf of such Holder and deliver Treasury Units in the form of a Treasury Unit
Certificate executed by the Company in accordance with Section 3.03 evidencing the same
number of Stock Purchase Contracts as were evidenced by the cancelled Corporate Units.

     Holders who elect to separate the applicable Debentures from the related Stock Purchase
Contracts and to substitute the applicable Qualifying Treasury Securities for such Debentures shall
be responsible for any fees or expenses (other than any fees and expenses payable to the Collateral
Agent for its services as Collateral Agent) in respect of the substitution, and neither the Company
nor the Purchase Contract Agent shall be responsible for any such fees or expenses.

     In the event a Holder making a Collateral Substitution pursuant to this Section 3.13 fails to
effect a book-entry transfer of the Corporate Units or fails to deliver Corporate Unit Certificates
to the Purchase Contract Agent after depositing the applicable Qualifying Treasury Securities with
the Securities Intermediary, any distributions on the Debentures constituting a part of such
Corporate Units shall be held in the name of the Purchase Contract Agent or its nominee in trust
for the benefit of such Holder, until such Corporate Units are so transferred or the Corporate Unit
Certificate is so delivered, as the case may be, or until such Holder provides evidence
satisfactory to the Company and the Purchase Contract Agent that such Corporate Unit Certificate
has been mutilated, destroyed, lost or stolen, together with any indemnity that may be reasonably
required by the Purchase Contract Agent and the Company.

     Except as described in Section 5.02 or in this Section 3.13 or in connection with a Settlement
with Cash, an Early Settlement, a Cash Merger Early Settlement or a Termination Event, for so long
as the Stock Purchase Contract underlying Corporate Units remains in effect, such Corporate Units
shall not be separable into its constituent parts, and the rights and obligations of the Holder in
respect of the interests in the applicable Debentures and the Stock Purchase Contract comprising
such Corporate Units may be acquired, and may be transferred and exchanged, only as Corporate
Units.

     Section 3.14 Recreation of Corporate Units.

     Subject to the conditions set forth in this Agreement, a Holder of Treasury Units may recreate
Corporate Units at any time (other than during a Blackout Period) in accordance with the procedures
set forth below; provided that Holders of Treasury Units may only recreate Corporate Units in
integral multiples of 40 Treasury Units. To recreate Corporate Units, for each 40 Treasury Units
the Holder must:

     (i) transfer to the Securities Intermediary the applicable Debentures of each series
having a Principal Amount of $1,000; and

     (ii) transfer the related Treasury Units to the Purchase Contract Agent accompanied by
a notice to the Purchase Contract Agent, substantially in the form of Exhibit C, (A) stating
that the Holder has transferred the relevant amount of each series of applicable Debentures
and (B) instructing the Purchase Contract Agent to instruct the Collateral Agent to release
the Pledged Treasury Securities underlying such Treasury Units, whereupon the Purchase
Contract Agent shall promptly provide an instruction to such effect to the Collateral Agent,
substantially in the form of Exhibit C to the Pledge Agreement.

Upon receipt of the Debentures described in clauses (i) above and the instruction described in
clause (B) above, in accordance with the terms of the Pledge Agreement, the Collateral Agent will
cause the Securities Intermediary to effect the release of the Pledged Treasury Securities having a
corresponding

Purchase Contract Agreement

29

 

aggregate principal amount at maturity from the Pledge and the transfer thereof to the Purchase
Contract Agent on behalf of the Holder free and clear of the Company’s security interest therein.
Upon receipt of such Treasury Securities, the Purchase Contract Agent shall promptly:

     (i) cancel the related Treasury Units;

     (ii) transfer the applicable Qualifying Treasury Securities to the Holder; and

     (iii) deliver Corporate Units in book-entry form or, if applicable, authenticate,
execute on behalf of such Holder and deliver Corporate Units in the form of a Corporate Unit
Certificate executed by the Company in accordance with Section 3.03 evidencing the same
number of Stock Purchase Contracts as were evidenced by the cancelled Treasury Units.

     Holders who elect to recreate Corporate Units shall be responsible for any fees or expenses
(other than any fees and expenses payable to the Collateral Agent for its services as Collateral
Agent) in respect of the recreation, and neither the Company nor the Purchase Contract Agent shall
be responsible for any such fees or expenses.

     Except as provided in Section 5.02 or in this Section 3.14 or in connection with a Settlement
with Cash, an Early Settlement, a Cash Merger Early Settlement or a Termination Event, for so long
as the Stock Purchase Contract underlying Treasury Units remains in effect, such Treasury Units
shall not be separable into its constituent parts and the rights and obligations of the Holder of
such Treasury Units in respect of the interests in the applicable Qualifying Treasury Securities
and the Stock Purchase Contract comprising such Treasury Units may be acquired, and may be
transferred and exchanged, only as Treasury Units.

     Section 3.15 Transfer of Collateral upon Occurrence of Termination Event.

     Upon the occurrence of a Termination Event and the transfer to the Purchase Contract Agent of
the applicable Debentures (or, if such Termination Event occurs after a Remarketing Settlement Date
and prior to the applicable Stock Purchase Date, an interest in the Treasury Portfolio) or the
applicable Qualifying Treasury Securities, as the case may be, underlying the Corporate Units and
the Treasury Units, as the case may be, pursuant to the terms of the Pledge Agreement, the Purchase
Contract Agent shall request transfer instructions with respect to such applicable Debentures (or,
if such Termination Event occurs after a Remarketing Settlement Date and prior to the applicable
Stock Purchase Date, an interest in the Treasury Portfolio) or applicable Qualifying Treasury
Securities, as the case may be, from each Holder by written request, substantially in the form of
Exhibit D, mailed to such Holder at its address as it appears in the Security Register.

     Upon book-entry transfer of the Corporate Units or the Treasury Units or delivery of a
Corporate Unit Certificate or Treasury Unit Certificate, as the case may be, to the Purchase
Contract Agent with such transfer instructions, the Purchase Contract Agent shall transfer the
applicable Debentures (or, if such Termination Event occurs after a Remarketing Settlement Date and
prior to the applicable Stock Purchase Date, an interest in the Treasury Portfolio) or applicable
Qualifying Treasury Securities, as the case may be, underlying such Corporate Units or Treasury
Units, as the case may be, to such Holder by book-entry transfer, or other appropriate procedures,
in accordance with such instructions. In the event a Holder of Corporate Units or Treasury Units
fails to effect such transfer or delivery, the applicable Debentures (or, if such Termination Event
occurs after a Remarketing Settlement Date and prior to the applicable Stock Purchase Date, an
interest in the Treasury Portfolio) or applicable Qualifying Treasury

Purchase Contract Agreement

30

 

Securities, as the case may be, underlying such Corporate Units or Treasury Units, as the case
may be, and any distributions thereon, shall be held in the name of the Purchase Contract Agent or
its nominee in trust for the benefit of such Holder, until the earlier to occur of:

     (i) the transfer of such Corporate Units or Treasury Units or surrender of the
Corporate Unit Certificate or Treasury Unit Certificate or the receipt by the Company and
the Purchase Contract Agent from such Holder of satisfactory evidence that such Corporate
Unit Certificate or Treasury Unit Certificate has been mutilated, destroyed, lost or stolen,
together with any indemnity that may be reasonably required by the Purchase Contract Agent
and the Company; and

     (ii) the expiration of the time period specified in the abandoned property laws of the
relevant State in which the Purchase Contract Agent holds such property.

     Section 3.16 No Consent to Assumption.

     Each Holder of an Equity Unit, by acceptance thereof, shall be deemed expressly to have
withheld any consent to the assumption (i.e., affirmance) under Section 365 of the Bankruptcy Code
or otherwise, of the Stock Purchase Contract by the Company or its trustee, receiver, liquidator or
a person or entity performing similar functions in the event that the Company becomes the subject
of a case under the Bankruptcy Code or subject to other similar state or Federal law providing for
reorganization or liquidation.

     Section 3.17 CUSIP Numbers.

     The Company in issuing the Securities may use “CUSIP” numbers (if then generally in use), and,
if so, the Purchase Contract Agent shall use “CUSIP” numbers as a convenience to Holders. The
Company will promptly notify the Purchase Contract Agent in writing of any change in the “CUSIP”
numbers.

ARTICLE IV

THE DEBENTURES

     Section 4.01 Distributions; Rights to Distributions Preserved.

     Any payment on any Debenture that is paid on any Payment Date shall, subject to Section
5.11(b) and to receipt thereof by the Purchase Contract Agent from the Company (in the case of a
Debenture that is held in the name of the Purchase Contract Agent) or from the Collateral Agent as
provided by the terms of the Pledge Agreement (in the case of a Debenture that is held in the name
of the Collateral Agent), be paid by the Purchase Contract Agent to the Person in whose name the
Corporate Unit Certificate (or one or more Predecessor Corporate Unit Certificates) of which such
Debentures form a part is registered at the close of business on the Record Date for such Payment
Date.

     Each Corporate Unit Certificate evidencing the ownership interest in the underlying Debentures
delivered under this Agreement upon registration of transfer of or in exchange for or in lieu of
any other Corporate Unit Certificate shall carry the right to accrued and unpaid interest, and to
accrue interest, that were carried by the Debentures underlying such other Corporate Unit
Certificate.

Purchase Contract Agreement

31

 

     In the case of any Corporate Units with respect to which (A) a Settlement with Cash of the
underlying Stock Purchase Contract is properly effected pursuant to Section 5.02(b), (B) an Early
Settlement of the underlying Stock Purchase Contract is properly effected pursuant to Section 5.07,
(C) a Cash Merger Early Settlement of the underlying Stock Purchase Contract is properly effected
pursuant to Section 5.04(b)(ii), (D) a Collateral Substitution is properly effected pursuant to
Section 3.11, or (E) a Successful Remarketing occurs with respect to the Debentures that are part
of such Corporate Units, in each case on a date that is after any Record Date and prior to or on
the next succeeding Payment Date, distributions on the Debentures underlying such Corporate Units
otherwise payable on such Payment Date shall be payable on such Payment Date notwithstanding such
Settlement with Cash, Early Settlement, Cash Merger Early Settlement, Collateral Substitution or
Successful Remarketing, and such payment or distributions shall, subject to receipt thereof by the
Purchase Contract Agent, be payable to the Person in whose name the Corporate Unit Certificate (or
one or more Predecessor Corporate Unit Certificates) was registered at the close of business on the
Record Date.

     Except as otherwise expressly provided in the immediately preceding paragraph, in the case of
any Corporate Units with respect to which Settlement with Cash, Early Settlement or Cash Merger
Early Settlement of the underlying Stock Purchase Contract is properly effected, or with respect to
which a Collateral Substitution has been effected, payments on the related Debentures that would
otherwise be payable or made after any Stock Purchase Date, Early Settlement Date, Cash Merger
Early Settlement Date or the date of the Collateral Substitution, as the case may be, shall not be
payable hereunder to the Holder of such Corporate Units; provided, however, that to the extent that
such Holder continues to hold Separate Debentures that formerly comprised a part of such Holder’s
Corporate Units, such Holder shall be entitled to receive distributions on such Separate
Debentures.

     Section 4.02 Notice and Voting.

     Under the terms of the Pledge Agreement, the Purchase Contract Agent will be entitled to
exercise the voting and any other consensual rights pertaining to the Pledged Debentures, but only
to the extent instructed in writing by the Holders or their appointees as described below. Upon
receipt of notice of any meeting at which holders of any series of Debentures are entitled to vote
or upon any solicitation of consents, waivers or proxies of holders of any series of Debentures,
the Purchase Contract Agent shall, as soon as practicable thereafter, mail, first class, postage
pre-paid, to the Holders of Corporate Units a notice:

     (i) containing such information as is contained in the notice or solicitation;

     (ii) stating that each Holder or its appointee on the record date set by the Purchase
Contract Agent therefor (which, to the extent possible, shall be the same date as the record
date for determining the holders of the applicable series of Debentures, as the case may be,
entitled to vote) shall be entitled to instruct the Purchase Contract Agent as to the
exercise of the voting rights pertaining to such Debentures underlying their Corporate
Units; and

     (iii) stating the manner in which such instructions may be exercised.

     Upon the written request of the Holders or their appointees of Corporate Units on such record
date received by the Purchase Contract Agent at least six days prior to such meeting, the Purchase
Contract Agent shall endeavor insofar as practicable to vote or cause to be voted, in accordance
with the instructions set forth in such requests, the maximum number of Debentures, as the case may
be, as to which any particular voting instructions are received. In the absence of specific
instructions from the

Purchase Contract Agreement

32

 

Holder of a Corporate Unit, the Purchase Contract Agent shall abstain from voting the
Debentures underlying such Corporate Units.

     The Holders of Corporate Units and Treasury Units shall have no voting or other rights in
respect of Common Stock.

ARTICLE V

THE STOCK PURCHASE CONTRACTS

     Section 5.01 Purchase of Shares of Common Stock.

     (a) Each Stock Purchase Contract shall obligate the Holder of the related Equity Unit to
purchase, and the Company to sell, on each Stock Purchase Date at a price equal to $25 in cash (the
“Purchase Price”), a number of newly issued or treasury shares of Common Stock per Equity Unit
(subject to Section 5.08) equal to the applicable Settlement Rate (as defined below) unless an
Early Settlement, a Cash Merger Early Settlement or a Termination Event with respect to the Equity
Units of which such Stock Purchase Contract is a part shall have occurred.

     With respect to each Stock Purchase Date, the “Settlement Rate” shall be:

     (i) if the Applicable Market Value of Common Stock with respect to such Stock Purchase
Date is equal to or greater than the Threshold Appreciation Price, 0.54823 shares of Common
Stock;

     (ii) if the Applicable Market Value of Common Stock with respect to such Stock Purchase
Date is less than the Threshold Appreciation Price but greater than the Reference Price, a
number of shares of Common Stock equal to $25 divided by the Applicable Market Value; and

     (iii) if the Applicable Market Value of Common Stock with respect to such Stock
Purchase Date is less than or equal to the Reference Price, 0.6579 shares of Common Stock;

in each case subject to adjustment as provided in Section 5.04.

     (b) Each Holder of Corporate Units or Treasury Units, by its acceptance of such Equity Units
will be deemed to have:

     (i) duly appointed the Purchase Contract Agent to enter into and perform the related
Stock Purchase Contract and the Pledge Agreement on its behalf and in its name as its
attorney-in-fact (including, without limitation, the execution of Certificates on behalf of
such Holder);

     (ii) irrevocably agreed to be bound by the terms and provisions of such Stock Purchase
Contract and the Pledge Agreement;

     (iii) covenanted and agreed to perform its obligations under such Stock Purchase
Contract for so long as such Holder remains a Holder of Corporate Units or Treasury Units;

     (iv) irrevocably authorized the Purchase Contract Agent to enter into and perform this
Agreement and the Pledge Agreement on its behalf and in its name as its attorney-in-fact;

Purchase Contract Agreement

33

 

     (v) consents to, and agrees to be bound by, the Pledge of such Holder’s right, title
and interest in and to the Collateral, including the Debentures and the Qualifying Treasury
Securities, pursuant to the Pledge Agreement and delivery of the applicable Debentures by
the Purchase Contract Agent to the Collateral Agent;

     (vi) for United States federal, state and local income and franchise tax purposes,
agrees to take the positions set forth in Section 10.07(b); and

     (vii) irrevocably directed the Purchase Contract Agent to execute one or more
Remarketing Agreements at the direction of the Company, without the receipt of any opinion
or certificate.

     (c) Each Holder of Corporate Units or Treasury Units, by its acceptance thereof, shall be
deemed to have further covenanted and agreed that to the extent and in the manner provided in
Section 5.02 and the provisions of the Pledge Agreement, but subject to the terms thereof, Proceeds
of the Treasury Portfolio or the applicable Qualifying Treasury Securities, as applicable, on each
Stock Purchase Date, shall be paid by the Collateral Agent to the Company in satisfaction of such
Holder’s obligations under such Stock Purchase Contract with respect to such Stock Purchase Date
and such Holder shall acquire no right, title or interest in such Proceeds except that (i) Proceeds
of the Treasury Portfolio in excess of the amount required to satisfy such Holder’s obligations
under such Stock Purchase Contract with respect to such Stock Purchase Date and (ii) any Proceeds
of the Remarketing in excess of the aggregate Treasury Portfolio Purchase Price applicable to the
related Corporate Units plus the portion of the Remarketing Agent’s Fee attributable to such
Pledged Debentures will be remitted to the Purchase Contract Agent for payment to the Holders of
the related Corporate Units (x) on the Stock Purchase Date, in the case of amounts payable pursuant
to clause (i) and (y) as promptly as practicable after the applicable Remarketing Settlement Date,
in the case of amounts payable pursuant to clause (ii).

     (d) Upon registration of transfer of a Certificate, the transferee shall be bound (without the
necessity of any other action on the part of such transferee) by the terms of this Agreement, the
Stock Purchase Contracts underlying such Certificate and the Pledge Agreement and the transferor
shall be released from the obligations under this Agreement, the Stock Purchase Contracts
underlying the Certificate so transferred and the Pledge Agreement. The Company covenants and
agrees, and each Holder of a Certificate, by its acceptance thereof, likewise shall be deemed to
have covenanted and agreed, to be bound by the provisions of this paragraph.

     (e) Promptly after the calculation of each Settlement Rate and Applicable Market Value, the
Company shall give the Purchase Contract Agent notice thereof. All calculations and determinations
of any Settlement Rate or Applicable Market Value shall be made by the Company or its agent based
on their good faith calculations and will be conclusive and binding.

     Section 5.02 Remarketing; Payment of Purchase Price.

     (a) (i) The Company shall conduct a Remarketing of each series of Debentures in accordance
with the applicable Supplemental Indenture and Remarketing Agreement and, in the event of a
Successful Remarketing, purchase the Treasury Portfolio on the Remarketing Settlement Date with the
net proceeds thereof equal to the Treasury Portfolio Purchase Price, after payment of the
Remarketing Agent’s Fee. If the Remarketing of the Series B-1 Debentures is Successful, on the
Payment Date immediately following the First Remarketing Settlement Date the Purchase Contract
Agent shall pay, out of funds received from the Custodial Agent on such date pursuant to
Section 7.3 of the Pledge Agreement,

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34

 

the Proceeds of the portion of the Treasury Portfolio corresponding to clause (ii) of the
definition of such term, to each Holder of Corporate Units on the Record Date for such Payment
Date, its pro rata share of such amount.

     (ii) With respect to the Debentures of any series that constitute part of Corporate
Units that are subject to a Failed Remarketing, the Collateral Agent for the benefit of the
Company reserves all of its rights as a secured party with respect thereto and, subject to
applicable law and Section 5.02(c) below, may, among other things, (A) retain such
Debentures in full satisfaction of the Holders’ obligations under the Stock Purchase
Contracts on the applicable Stock Purchase Date or (B) sell such Debentures in one or more
public or private sales or otherwise.

     (iii) Prior to 5:00 p.m. (New York City time) on the second Business Day immediately
preceding any Remarketing Period Start Date, Holders of Separate Debentures may elect to
have their Separate Debentures remarketed under the relevant Remarketing Agreement by
delivering their Separate Debentures, along with a notice of such election, substantially in
the form of Exhibit F to the Pledge Agreement, to the Custodial Agent. The Custodial Agent
shall hold Separate Debentures in an account separate from the Collateral Account in which
the Pledged Debentures are be held. Holders of Separate Debentures electing to have their
Separate Debentures remarketed will also have the right to withdraw that election by written
notice to the Custodial Agent, substantially in the form of Exhibit G to the Pledge
Agreement, by 5:00 p.m. (New York City time) on the second Business Day immediately
preceding the applicable Remarketing Period Start Date, upon which notice the Custodial
Agent shall return such Separate Debentures to such Holder. Promptly after 5:00 p.m. on the
Business Day immediately preceding the applicable Remarketing Period Start Date, the
Custodial Agent shall notify the Remarketing Agent of the aggregate Principal Amount of the
Separate Debentures to be remarketed. After such time, such election shall become an
irrevocable election to have such Separate Debentures remarketed in such Remarketing.

     (iv) The Purchase Contract Agent shall give Holders of Equity Units, notice of a
Remarketing at least 21 Business Days prior to the applicable Remarketing Period Start Date.
Such notice will set forth the information required to be set forth in the notice pursuant
to Section 2.1(p) of the applicable Supplemental Indenture.

     (v) As soon as practicable after 5:00 p.m. (New York City time) on the second Business
Day immediately preceding the Remarketing Period Start Date, the Collateral Agent, based on
the notices received by the Collateral Agent pursuant to Section 5.02(b)(ii), shall promptly
notify the Purchase Contract Agent of the aggregate Principal Amount of Debentures to be
tendered for purchase in the Remarketing in a notice pursuant to the terms of the Pledge
Agreement.

     (b) (i) Unless an Early Settlement or a Cash Merger Early Settlement has occurred, each Holder
of Equity Units (other than a Corporate Unit as to which an interest in a Treasury Portfolio has
replaced an interest in a series of Debentures) shall have the right to satisfy such Holder’s
obligations under the Stock Purchase Contract with respect to any Stock Purchase Date with cash by
notifying the Purchase Contract Agent by use of a notice in substantially the form of Exhibit E of
its intention to settle with cash (“Settlement with Cash”) duly completed and executed on the
reverse of the Corporate Unit Certificate surrendered to the Purchase Contract Agent by 11:00 a.m.
(New York City time) on the second Business Day immediately preceding the applicable Stock Purchase
Date (but in no event prior to the

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35

 

completion of the immediately preceding Remarketing Period); provided that Holders may only do
so in integral multiples of 40 Corporate Units. Promptly following 5:00 p.m. (New York City time)
on the second Business Day immediately preceding such Stock Purchase Date, the Purchase Contract
Agent shall notify the Collateral Agent of the receipt of such notices from Holders intending to
make a Settlement with Cash by use of a notice in substantially the form of Exhibit F.

     (ii) A Holder of Equity Units who has so notified the Purchase Contract Agent of its
intention to effect a Settlement with Cash shall, for each 40 Corporate Units to which such
notice applies, deposit with the Collateral Agent $1,000 (payable to the Collateral Agent in
immediately available funds) by 11:00 a.m. (New York City time) on the Business Day
immediately preceding the applicable Stock Purchase Date. The cash so received shall be
delivered to the Company on the applicable Stock Purchase Date in settlement of the
obligations of the Holders under Stock Purchase Contracts on such Stock Purchase Date in
accordance with the terms of this Agreement and the Pledge Agreement.

     (iii) If a Holder of Corporate Units does not notify the Purchase Contract Agent of its
intention to make a Settlement with Cash in accordance with Section 5.02(b)(i), or does
notify the Purchase Contract Agent in accordance with Section 5.02(b)(i), but fails to make
such deposit as required by Section 5.02(b)(ii), its notice delivered pursuant to Section
5.02(b)(ii) shall automatically be deemed withdrawn and without effect.

     (iv) If a Holder of a Treasury Unit has given notice of its intention to make a
Settlement with Cash in accordance with Section 5.02(b)(i) fails to deliver the cash to the
Collateral Agent on the Business Day immediately preceding the applicable Stock Purchase
Date, the proceeds from the applicable Qualifying Treasury Securities will automatically be
applied to satisfy such Holder’s obligation to purchase Common Stock on such Stock Purchase
Date.

     (c) The obligations of the Holders to pay the Purchase Price on any Stock Purchase Date are
non-recourse obligations and, except to the extent satisfied by Early Settlement, Cash Merger Early
Settlement or pursuant to Section 5.02(b), are payable solely out of the Proceeds of any Collateral
pledged to secure the obligations of the Holders with respect to such Purchase Price, and in no
event will Holders be liable for any deficiency between the Proceeds of the disposition of
Collateral and the Purchase Price.

     (d) The Company shall not be obligated to issue any shares of Common Stock in respect of a
Stock Purchase Contract on any Stock Purchase Date or deliver any certificates thereof to the
Holder of the related Equity Units unless the Company shall have received payment for the Common
Stock to be purchased thereunder on such Stock Purchase Date in the manner herein set forth.

     Section 5.03 Issuance of Shares of Common Stock.

     Unless a Termination Event, an Early Settlement or a Cash Merger Early Settlement shall have
occurred, on each Stock Purchase Date upon receipt of the aggregate Purchase Price payable on all
Outstanding Equity Units with respect to such Stock Purchase Date, the Company shall issue and
deposit with the Purchase Contract Agent, for the benefit of the Holders of the Outstanding Equity
Units, by book-entry transfer or in the form of one or more certificates representing newly issued
or treasury shares of Common Stock registered in the name of the Purchase Contract Agent (or its
nominee) as custodian for the Holders (such certificates for shares of Common Stock, together with
any dividends or distributions for which a record date and payment date for such dividend or
distribution has occurred after the close of business on the date of delivery of the shares of
Common Stock to the Purchase Contract Agent, being

Purchase Contract Agreement

36

 

hereinafter referred to as the “Stock Purchase Contract Settlement Fund”) to which the Holders
are entitled hereunder.

     Subject to the foregoing, upon delivery on or after any Stock Purchase Date, the Early
Settlement Date or the Cash Merger Early Settlement Date, of the applicable settlement instructions
forming part of the Certificate for each Equity Unit (and in the case of the Third Stock Purchase
Date, the Early Settlement Date or the Cash Merger Early Settlement Date, the surrender of such
Certificate) to the Purchase Contract Agent on or after the applicable Stock Purchase Date, the
Early Settlement Date or the Cash Merger Early Settlement Date, as the case may be, together with
IRS Forms W-8 or W-9 or substitute thereof (as appropriate) duly completed and executed, the Holder
of such Certificate shall be entitled to receive forthwith in respect thereof or exchange therefor,
by book-entry transfer or in the form of a certificate, that whole number of newly issued or
treasury shares of Common Stock that such Holder is entitled to receive pursuant to the provisions
of this Article V (after taking into account all Equity Units then held by such Holder), together
with cash in lieu of fractional shares as provided in Section 5.08 and any dividends or
distributions with respect to such shares constituting part of the Stock Purchase Contract
Settlement Fund, but without any interest thereon. Any Certificate so surrendered shall forthwith
be cancelled. Such shares shall be registered in the name of the Holder or the Holder’s designee
as specified in the settlement instructions provided by the Holder to the Purchase Contract Agent.
If any shares of Common Stock issued in respect of a Stock Purchase Contract are to be registered
to a Person other than the Person in whose name the Certificate evidencing a Equity Units of which
such Stock Purchase Contract forms a part is registered, no such registration shall be made unless
the Person requesting such registration has paid any transfer and other taxes required by reason of
such registration in a name other than that of the registered Holder of the Certificate evidencing
such Stock Purchase Contract or has established to the satisfaction of the Company that such tax
either has been paid or is not payable.

     Section 5.04 Adjustment of Fixed Settlement Rates.

     (a) Each Fixed Settlement Rate and the number of shares of Common Stock or, if applicable, the
number of Make-Whole Shares, to be delivered upon an Early Settlement or Cash Merger Early
Settlement will be subject to adjustment, without duplication, under the following circumstances:

     (i) the issuance of Common Stock as a dividend or distribution to all holders of Common
Stock, or a subdivision or combination of Common Stock, in which event each Fixed Settlement
Rate will be adjusted based on the following formula:

SR1
=
SR0
x
(OS1
/ OS0)

where,

	 	 	 	 	 	 	 
	 

	 	SR0
	 	 =
	 	the Fixed Settlement Rate in effect at the close of business on the record date
	 

	 	SR1
	 	 =
	 	the Fixed Settlement Rate in effect immediately after the record date
	 

	 	OS0
	 	 =
	 	the number of shares of Common Stock outstanding at the close of
business on the record date prior to giving effect to such event
	 

	 	OS1
	 	 =
	 	the number of shares of Common Stock that would be outstanding
immediately after, and solely as a result of, such event

     (ii) the issuance to all holders of Common Stock of certain rights, options or warrants
entitling them for a period expiring 60 days or less from the date of issuance of such
rights, options or warrants to purchase shares of Common Stock at less than the Current
Market Price of

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Common Stock as of the record date, in which event each Fixed Settlement Rate
will be adjusted based on the following formula:

SR1
=
SR0
x
(OS0
+ X) /
(OS0 + Y)

where,

	 	 	 	 	 	 	 
	 

	 	SR0
	 	=
	 	the Fixed Settlement Rate in effect at the close of business on the record date
	 

	 	SR1
	 	=
	 	the Fixed Settlement Rate in effect immediately after the record date
	 

	 	OS0
	 	=
	 	the number of shares of Common Stock outstanding at the close of
business on the record date
	 

	 	X
	 	=
	 	the total number of shares of Common Stock issuable pursuant to such
rights, options or warrants
	 

	 	Y
	 	=
	 	the aggregate price payable to exercise such rights divided by the
average of the VWAP per share of the Common Stock over each of the 10 consecutive
Trading Days prior to the Business Day immediately preceding the announcement of the
issuance of such rights, options or warrants

However, each Fixed Settlement Rate will be readjusted to the extent that any such rights,
options or warrants are not exercised prior to their expiration.

     (iii) the dividend or other distribution to all holders of Common Stock of shares of
capital stock of the Company (other than Common Stock), rights to acquire capital stock of
the Company or evidences of the Company’s indebtedness or the Company’s assets (excluding any
dividend, distribution or issuance covered by clauses (i) or (ii) above or (iv) or (v) below)
in which event each Fixed Settlement Rate will be adjusted based on the following formula:

SR1
=
SR0
x
SP0
/
(SP0 – FMV)

where,

	 	 	 	 	 	 	 
	 

	 	SR0
	 	=
	 	the Fixed Settlement Rate in effect at the close of business on the record date
	 

	 	SR1
	 	=
	 	the Fixed Settlement Rate in effect immediately after the record date
	 

	 	SP0
	 	=
	 	the Current Market Price as of the record date
	 

	 	FMV
	 	=
	 	the fair market value (as determined in good faith by the Board of
Directors, whose good faith determination when evidenced by a Board Resolution shall
be conclusive and binding), on the record date, of the shares of capital stock of
the Company, rights to acquire capital stock, evidences of indebtedness or assets so
distributed, expressed as an amount per share of Common Stock

However, if the transaction that gives rise to an adjustment pursuant to this clause (iii) is
one pursuant to which the payment of a dividend or other distribution on Common Stock consist
of shares of capital stock of the Company of, or similar equity interests in, a subsidiary or
other business unit of the Company, that are, or, when issued, will be, traded on a U.S.
securities exchange, then each Fixed Settlement Rate will instead be adjusted based on the
following formula:

SR1
=
SR0
x
(FMV0 + MP0) / MP0

Purchase Contract Agreement

38

 

where,

	 	 	 	 	 	 	 
	 

	 	SR0
	 	=
	 	the Fixed Settlement Rate in effect at the close of business on the record date
	 

	 	SR1
	 	=
	 	the Fixed Settlement Rate in effect immediately after the record date
	 

	 	FMV0
	 	=
	 	the average of the VWAP of the capital stock or similar equity
interests distributed to holders of Common Stock applicable to one share of Common
Stock over each of the 10 consecutive Trading Days commencing on and including the
third Trading Day after the date on which “ex-distribution trading” commences for
such dividend or distribution with respect to
Common Stock on the NYSE or such other national or regional exchange or
market that is at that time the principal market for the Common Stock
	 

	 	MP0
	 	=
	 	the average of the VWAP per share of the Common Stock over each of the
10 consecutive Trading Days commencing on and including the third Trading Day after
the date on which “ex-distribution trading” commences for such dividend or
distribution with respect to Common Stock on the NYSE or such other national or
regional exchange or market that is at that time the principal market for the Common
Stock

     (iv) the Company makes a distribution consisting exclusively of cash to all holders of
Common Stock, excluding (a) any cash dividend on Common Stock to the extent that the
aggregate cash dividend per share of Common Stock does not exceed (i) $0.22 in the then
current fiscal quarter in the case of a regular quarterly dividend or (ii) $0.88 in the prior
twelve months in the case of a regular annual dividend (each such number, the “Dividend
Threshold Amount”), (b) any cash that is distributed as part of a distribution referred to in
clause (iii) above, and (c) any consideration payable in connection with a tender or exchange
offer made by the Company or any of the Company’s subsidiaries referred to in clause (v)
below, in which event, each Fixed Settlement Rate will be adjusted based on the following
formula:

SR1
= SR0 x SP0 / (SP0 – C)

where,

	 	 	 	 	 	 	 
	 

	 	SR0
	 	=
	 	the Fixed Settlement Rate in effect at the close of business on the record date
	 

	 	SR1
	 	=
	 	the Fixed Settlement Rate in effect immediately after the record date
	 

	 	SP0
	 	=
	 	the Current Market Price as of the record date
	 

	 	C
	 	=
	 	the excess of the amount in cash per share of Common Stock the Company
distributes to holders over the Dividend Threshold Amount

The Dividend Threshold Amount is subject to adjustment on an inversely proportional basis
whenever the Fixed Settlement Rates are adjusted, provided that no adjustment will be made to
the dividend threshold amount for any adjustment made to the Fixed Settlement Rates pursuant
to this clause (iv). For the avoidance of doubt, the Dividend Threshold Amount will be zero
in the case of a cash dividend amount that is not a regular quarterly or annual dividend.

     (v) the Company or one or more of its subsidiaries make purchases of Common Stock
pursuant to a tender offer or exchange offer by the Company or a subsidiary of the Company
for Common Stock to the extent that the cash and value of any other consideration included in
the payment per share of Common Stock validly tendered or exchanged exceeds the VWAP per
share of Common Stock on the Trading Day next succeeding the last date on which

Purchase Contract Agreement

39

 

tenders or
exchanges may be made pursuant to such tender or exchange offer (the “expiration date”), in
which event each Fixed Settlement Rate will be adjusted based on the following formula:

SR1 = SR0 x [(FMV + (SP1 x OS1)] / (SP
1 x OS0)

where,

	 	 	 	 	 	 	 
	 

	 	SR0
	 	=
	 	the Fixed Settlement Rate in effect at the close of business on the expiration date
	 

	 	SR1
	 	=
	 	the Fixed Settlement Rate in effect immediately after the expiration date
	 

	 	FMV
	 	=
	 	the fair market value (as determined in good faith by the Board of
Directors whose good faith determination when evidenced by a Board Resolution will
be conclusive and binding), on the expiration date, of the aggregate value of all
cash and any other consideration paid or payable for shares validly tendered or
exchanged and not withdrawn as of the expiration date (the “Purchased Shares”)
	 

	 	OS1
	 	=
	 	the number of shares of Common Stock outstanding as of the last time
tenders or exchanges may be made pursuant to such tender or exchange offer (the
"Expiration Time”) less any Purchased Shares
	 

	 	OS0
	 	=
	 	the number of shares of Common Stock outstanding at the Expiration Time,
including any Purchased Shares
	 

	 	SP1
	 	=
	 	the average of the VWAP per share of the Common Stock over each of the
10 consecutive Trading Days commencing with the Trading Day immediately after the
expiration date.

     (vi) Calculation of Adjustments. All adjustments to the Fixed Settlement Rates shall be
calculated by the Company to the nearest 1/10,000th of one share of Common Stock (or if there
is not a nearest 1/10,000th of a share, to the next lower 1/10,000th of a share). No
adjustment to the Fixed Settlement Rates shall be required unless such adjustment would
require an increase or a decrease of at least one percent in the Fixed Settlement Rate;
provided that any adjustments not so made shall be carried forward and taken into account in
any subsequent adjustment and notwithstanding whether or not such 1/10,000th of a share
threshold shall have been met, all such adjustments shall be made (x) upon the end of the
Company’s fiscal year and (y) on the applicable Stock Purchase Date, Cash Merger Early
Settlement Date or Early Settlement Date. If an adjustment is made to the Fixed Settlement
Rates pursuant to clauses (i) through (v) or (vii) of this Section 5.04(a), an adjustment
shall also be made to the Reference Price and the Threshold Appreciation Price on an
inversely proportional basis solely to determine which of clauses of the definition of
Settlement Rate will be applicable on each Stock Purchase Date or any Cash Merger Early
Settlement Date occurring after the date of such adjustment; provided that if such adjustment
to the applicable Fixed Settlement Rate is required to be made pursuant to the occurrence of
any of the events contemplated by clauses (i) through (v) or (vii) of this Section 5.04(a)
during the applicable Observation Period, appropriate and customary adjustments shall be made
to the VWAP per share of the Common Stock.

     (vii) When No Adjustment Required. No adjustment of the Fixed Settlement Rates, and the
number of shares to be delivered on Early Settlement need be made as a result of: (1) the
issuance of the rights; (2) the distribution of separate certificates representing the
rights; (3) the exercise or redemption of the rights in accordance with any rights agreement;
or (4) the

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40

 

termination or invalidation of the rights, in each case, pursuant to any
stockholder rights plans adopted by the Company from time to time; provided, however, that to
the extent that the Company has a stockholder rights plan in effect on any Stock Purchase
Date, the Holder shall receive, in addition to the shares of Common Stock, the rights under
such rights plan, unless, prior to such Stock Purchase Date, the rights have separated from
the Common Stock, in which case the applicable Fixed Settlement Rate will be adjusted at the
time of separation as if the Company made a distribution to all holders of Common Stock as
described in clause (iii) of this Section 5.04(a) including for the purposes of this
paragraph only, shares of Common Stock and assets issuable upon exercise of rights under a
stockholder rights plan, subject to readjustment in the event of the expiration, termination
or redemption of the rights.

     No adjustment to any Fixed Settlement Rate shall be made that reduces the amount payable
per share of Common Stock pursuant to the Stock Purchase Contracts below the par value per
share thereof.

     No adjustment to Fixed Settlement Rates need be made:

	 	(1)	 	upon the issuance of any shares of Common Stock or securities
convertible into, or exercisable or exchangeable for, Common Stock in public or
private transactions at any price that the Company deems appropriate;
	 
	 	(2)	 	upon the issuance of any shares of Common Stock pursuant to any
present or future plan providing for the reinvestment of dividends or interest
payable on securities of the Company and the investment of additional optional
amounts in shares of Common Stock under any plan of that type;
	 
	 	(3)	 	upon the issuance of any shares of Common Stock or options or
rights to purchase those shares or any other award that relates to, or has a
value derived from the value of the Common Stock, in each case issued pursuant to
any present or future employee, director or consultant benefit plan or program of
or assumed by the Company or any of its subsidiaries;
	 
	 	(4)	 	upon the issuance of any shares of Common Stock pursuant to any
option, warrant, right or exercisable, exchangeable or convertible security for,
Common Stock in public or private transactions at any price deemed appropriate by
the Company in its sole discretion;
	 
	 	(5)	 	for a change in the par value or no par value of the Common Stock;
	 
	 	(6)	 	for accumulated and unpaid dividends; or
	 
	 	(7)	 	upon the issuance of any shares of Common Stock pursuant to any
option, warrant, right, or exercisable, exchangeable or convertible security
outstanding as of the date the Equity Units were first issued.

For purpose of this Section 5.04(a), “record date” means, with respect to any dividend,
distribution or other transaction or event in which the holders of the Common Stock have the right
to receive any cash, securities or other property or in which the Common Stock (or other applicable
security) is exchanged for or converted into any combination of cash, securities or other property,
the date fixed for determination of

Purchase Contract Agreement

41

 

holders of the Common Stock entitled to receive such cash,
securities or other property (whether such date is fixed by the Board of Directors or by statute,
contract or otherwise).

     (b) Adjustment for Consolidation, Merger or Other Reorganization Event.

     (i) In the event of (1) any consolidation or merger of the Company with or into another
Person or of another Person with or into the Company (other than a merger or consolidation in
which the Company is the continuing corporation and in which the shares of Common Stock
outstanding immediately prior to the merger or consolidation are not exchanged for cash,
securities or other property of another Person), (2) any sale, transfer, lease or conveyance
to another Person of the assets of the Company as an entirety or substantially as an
entirety, (3) any statutory share exchange of Common Stock with another Person (other than in
connection with a merger or acquisition) or (4) any liquidation, dissolution or winding up of
the Company (other than as a result of or after the occurrence of a Termination Event) (any
such event, a “Reorganization Event”), each share of Common Stock covered by each Stock
Purchase Contract immediately prior to such Reorganization Event shall, after such
Reorganization Event, be converted for purposes of the Stock Purchase Contract into the kind
and amount of securities, cash and other property receivable in such Reorganization Event
(without any interest thereon, and without any right to dividends or distribution thereon
which have a record date that is prior to the applicable Stock Purchase Date, Cash Merger
Early Settlement Date or Early Settlement Date) per share of Common Stock by a holder of
Common Stock that is not a Person with which the Company consolidated or into which the
Company merged or which merged into the Company or to which such sale, transfer, lease or
conveyance was made, or with whom shares were exchanged pursuant to any such statutory share
exchange as the case may be (any such Person, a “Constituent Person”), or an Affiliate of a
Constituent Person to the extent such Reorganization Event provides for different treatment
of Common Stock held by the Affiliates and non-Affiliates of a Constituent Person (each such
converted share referred to as a “Exchange Property Unit”; provided that if holders of Common
Stock have the opportunity to elect the form of consideration receivable upon such
Reorganization Event, the Exchange Property Unit that Holders of the Corporate Units or
Treasury Units will be entitled to receive will be deemed to be the weighted average of the
types and amounts of consideration received by the holders of Common Stock that affirmatively
make an election (or of all such holders if none make an election). On each subsequent Stock
Purchase Date or on the Cash Merger Early Settlement Date or Early Settlement Date with
respect to any Equity Units, the Settlement Rate shall be determined by reference to the
Applicable Market Value of the Exchange Property Units. Following a Reorganization Event,
references to the purchase or issuance
of shares of Common Stock pursuant to Stock Purchase Contracts will be construed to be
references to settlement into Exchange Property Units, and references to the purchase or
issuance of any specified number of shares of Common Stock upon the settlement of Stock
Purchase Contracts will be construed to be references to settlement into the same number of
Exchange Property Units.

     In the event of such a Reorganization Event, the Person formed by such consolidation or
merger or the Person to whom such sale, transfer, lease or conveyance was made or with whom
such statutory share exchange was made or which otherwise acquires the assets of the Company
or, in the event of a liquidation or dissolution of the Company, the Company or a liquidating
trust created in connection therewith, shall execute and deliver to the Purchase Contract
Agent an agreement supplemental hereto providing that the Holder of each Outstanding Equity
Unit after the Reorganization Event, if any, shall have the rights provided by this Section
5.04. Such

Purchase Contract Agreement

42

 

supplemental agreement shall provide for adjustments to the amount of any
securities constituting all or a portion of an Exchange Property Unit which, for events
subsequent to the effective date of such supplemental agreement, shall be as nearly
equivalent as may be practicable to the adjustments provided for in this Section 5.04. The
above provisions of this Section 5.04(b)(i) shall similarly apply to successive
Reorganization Events.

     (ii) In the event the Company is involved in an event described in clause (1) or (2) of
Section 5.04(b)(i), in each case in which at least 10% of the consideration received by the
holders of Common Stock consists of cash or cash equivalents (a “Cash Merger”), then
following the Cash Merger each Holder of an Equity Unit shall have the right (a “Cash Merger
Early Settlement Right”) to accelerate and settle (“Cash Merger Early Settlement”) the Stock
Purchase Contract forming a part thereof, upon the conditions set forth below, for each $25
stated amount of each Equity Unit, at the Settlement Rate determined as if the Applicable
Market Value equaled the “stock price”, as such term is used in the definition of Make-Whole
Shares, and receive, under such circumstances, the applicable Make-Whole Shares; provided
that no Cash Merger Early Settlement will be permitted pursuant to this Section 5.04(b)(ii)
unless, at the time such Cash Merger Early Settlement is effected, there is an effective
Registration Statement with respect to any securities to be issued and delivered in
connection with such Cash Merger Early Settlement, if such a Registration Statement is
required (in the view of counsel, which need not be in the form of a written opinion, for the
Company) under the U.S. federal securities laws. If such a Registration Statement is so
required, the Company covenants and agrees to use commercially reasonable efforts to (x) have
in effect a Registration Statement covering any securities to be delivered in respect of the
Stock Purchase Contracts being settled and (y) provide a Prospectus in connection therewith,
in each case in a form that may be used in connection with such Cash Merger Early Settlement.

     Within five Business Days of the completion of a Cash Merger, the Company shall provide
written notice to Holders of Equity Units of such completion of a Cash Merger, which shall
specify the deadline for submitting the notice to settle early in cash pursuant to this
Section 5.04(b)(ii), the date on which such Cash Merger Early Settlement shall occur (which
date shall be at least 10 days after the date of such written notice by the Company, but
which shall in no event be later than the earlier of (x) 20 days after the date of such
notice and (y) two Business Days prior to the next Stock Purchase Date) (the “Cash Merger
Early Settlement Date”) and the date by which each Holder’s Cash Merger Early Settlement
Right must be exercised. The notice will set forth, among other things, the applicable
Settlement Rate and the amount (per share of Common Stock) of cash, securities, other
consideration and, if applicable, Make-Whole Shares receivable by the Holder upon settlement.
In addition, if a Holder effects a Cash Merger Early Settlement of some or all of its Stock
Purchase Contracts, such Holder shall be entitled to receive, on the Cash Merger Early
Settlement Date, the aggregate amount of any accrued and unpaid Contract Adjustment Payments
since the immediately preceding Payment Date with respect to such Stock Purchase Contracts
and the Company shall credit such amount against the amount otherwise payable by the Holders
to effect such Cash Merger Early Settlement (unless the Cash Merger Early Settlement Date
occurs after a Record Date and before the related Payment Date, in which case the applicable
Purchase Price shall not be reduced by the amount of accrued and unpaid Contract Adjustment
Payments).

     Corporate Units Holders and Treasury Units Holders may only effect Cash Merger Early
Settlement pursuant to this Section 5.04(b)(ii) in integral multiples of 40 Corporate
Units or

Purchase Contract Agreement

43

 

Treasury Units, as the case may be. Other than the provisions relating to timing of
notice and settlement, which shall be as set forth above, the provisions of Section 5.01(a)
shall apply with respect to a Cash Merger Early Settlement pursuant to this Section
5.04(b)(ii).

     In order to exercise the right to effect Cash Merger Early Settlement with respect to
any Stock Purchase Contracts, the Holder of the Certificate evidencing Equity Units shall
deliver, no later than 5:00 p.m. (New York City time) on the third Business Day immediately
preceding the Cash Merger Early Settlement Date, such Certificate to the Purchase Contract
Agent at the Corporate Trust Office duly endorsed for transfer to the Company or in blank
with the form of Election to Settle Early on the reverse thereof duly completed and
accompanied by payment of the Purchase Price (payable to the Company in immediately available
funds) in an amount equal to (A) the initial or adjusted Stated Amount multiplied by (B) the
number of Stock Purchase Contracts with respect to which the Holder has elected to effect
Cash Merger Early Settlement, less any credit in respect of Contract Adjustment Payments as
set forth above.

     If a Holder properly effects an effective Cash Merger Early Settlement in accordance
with the provisions of this Section 5.04(b)(ii), the Company will deliver (or will cause the
Collateral Agent to deliver) to the Holder on the Cash Merger Early Settlement Date in
respect of each Equity Unit so settled:

	 	(1)	 	the kind and amount of securities, cash or other property
receivable upon such Cash Merger by a holder of the number of shares of Common
Stock issuable on account of each Stock Purchase Contract if each remaining Stock
Purchase Date had occurred immediately prior to such Cash Merger (based on the
Settlement Rate in effect at such time), assuming such holder of Common Stock is
not a Constituent Person or an Affiliate of a Constituent Person to the extent
such Cash Merger provides for different treatment of Common Stock held by the
Constituent Person and Affiliates of the Constituent Person and non-affiliates
and such Holder failed to exercise its rights of election, if any, as to the kind
or amount of securities, cash and other property receivable upon such Cash Merger
(provided that if the kind or amount of securities, cash and other property
receivable upon such Cash Merger is not the same for each share of Common Stock
held immediately prior to such Cash Merger, then for the purpose of this Section
5.04(b)(ii), the kind and amount of securities, cash and other property
receivable upon such Cash Merger will be deemed to be the weighted average of the
types and amounts of consideration received by the holders of Common Stock that
affirmatively make an election (or of all such holders if none make an
election)). For the avoidance of doubt, for the purposes of determining the
appropriate Settlement Rate to be applied in the foregoing sentence, the date of
the closing of the Cash Merger shall be deemed to be the relevant Stock Purchase
Date;
	 
	 	(2)	 	the applicable Debentures or applicable Qualifying Treasury
Securities, as the case may be, related to the Stock Purchase Contracts with
respect to which the Holder is effecting a Cash Merger Early Settlement;
	 
	 	(3)	 	the Make-Whole Shares, if any; and

Purchase Contract Agreement

44

 

	 	(4)	 	if so required under the Securities Act, a Prospectus as
contemplated by this Section 5.04(b)(ii).

     If an interest in the Treasury Portfolio has replaced the Debentures of any series as a
component of Corporate Units, Holders of the Corporate Units will receive, on the next Stock
Purchase Date, $1,000 in cash for each 40 Corporate Units as to which they have exercised their
Cash Merger Early Settlement Right plus the allocable amount of the Proceeds at maturity of the
securities described in clause (iii) of the definition of Treasury Portfolio, representing their
respective interest in the Treasury Portfolio.

     (c) Successive Adjustments. After an adjustment to a Fixed Settlement Rate under this Section
5.04, any subsequent event requiring an adjustment under this Section 5.04 shall cause an
adjustment to such Fixed Settlement Rate as so adjusted.

     (d) Multiple Adjustments. For the avoidance of doubt, if an event occurs that would trigger
an adjustment to a Fixed Settlement Rate pursuant to this Section 5.04 under more than one
subsection hereof, such event, to the extent fully taken into account in a single adjustment, shall
not result in multiple adjustments hereunder.

     (e) Other Adjustments. The Company may, but shall not be required to, make such increases in
the Fixed Settlement Rate, in addition to those required by this Section, as the Board of Directors
considers to be advisable in order to avoid or diminish any income tax to any holders of shares of
Common Stock resulting from any dividend or distribution of stock or issuance of rights or warrants
to purchase or subscribe for stock or from any event treated as such for income tax purposes or for
any other reason. Any such adjustment to the Fixed Settlement Rate shall be proportionally made to
both the Maximum Settlement Rate and the Minimum Settlement Rate.

     Section 5.05 Notice of Adjustments and Certain Other Events.

     (a) Whenever a Fixed Settlement Rate is adjusted as provided under Section 5.04(a), Section
5.04(b) or Section 5.04(e), the Company shall within 10 Business Days following the occurrence of
an event that requires such adjustment (or if the Company is not aware of such occurrence, as soon
as reasonably practicable after becoming so aware) or the date the Company makes an adjustment
pursuant to Section 5.04(e):

     (i) compute each adjusted Fixed Settlement Rate in accordance with Section 5.04 and
prepare and transmit to the Purchase Contract Agent an Officers’ Certificate setting forth
each adjusted Fixed Settlement Rate, the method of calculation thereof in reasonable detail,
and the facts requiring such adjustment and upon which such adjustment is based; and

     (ii) provide a written notice to the Holders of the Equity Units of the occurrence of
such event and a statement in reasonable detail setting forth the method by which the
adjustment to each Fixed Settlement Rate was determined and setting forth each adjusted Fixed
Settlement Rate.

     (b) The Purchase Contract Agent shall not at any time be under any duty or responsibility to
any Holder of Equity Units to determine whether any facts exist that may require any adjustment of
each Fixed Settlement Rate or with respect to the nature or extent or calculation of any such
adjustment when made, or with respect to the method employed in making the same. The Purchase
Contract Agent shall be

Purchase Contract Agreement

45

 

fully authorized and protected in relying on any Officers’ Certificate
delivered pursuant to Section 5.05(a)(i) and any adjustment contained therein and the Purchase
Contract Agent shall not be deemed to have knowledge of any adjustment unless and until it has
received such certificate. The Purchase Contract Agent shall not be accountable with respect to
the validity or value (or the kind or amount) of any shares of Common Stock, or of any securities
or property, that may at the time be issued or delivered with respect to any Stock Purchase
Contract; and the Purchase Contract Agent makes no representation with respect thereto. The
Purchase Contract Agent shall not be responsible for any failure of the Company to issue, transfer
or deliver any shares of Common Stock pursuant to a Stock Purchase Contract or to comply with any
of the duties, responsibilities or covenants of the Company contained in this Article V.

     Section 5.06 Termination Event; Notice.

     The Stock Purchase Contracts and all obligations and rights of the Company and the Holders
thereunder, including, without limitation, the rights of the Holders to receive and the obligation
of the Company to pay any Contract Adjustment Payments (including any accrued and unpaid Contract
Adjustment Payments), if the Company shall have such obligation, and the rights and obligations of
Holders to purchase Common Stock, shall immediately and automatically
terminate, without the necessity of any notice or action by any Holder, the Purchase Contract
Agent or the Company, if, prior to or on the Stock Purchase Date, a Termination Event shall have
occurred.

     Upon and after the occurrence of a Termination Event, the Equity Units shall thereafter
represent the right to receive the applicable Debentures or the applicable Qualifying Treasury
Securities, as the case may be, forming part of such Equity Units, in accordance with the
provisions of Section 5.04 of the Pledge Agreement. Upon the occurrence of a Termination Event,
the Company shall promptly but in no event later than two Business Days thereafter give written
notice to the Purchase Contract Agent, the Collateral Agent and the Holders, at their addresses as
they appear in the Security Register.

     Section 5.07 Early Settlement.

     (a) Subject to and upon compliance with the provisions of this Section 5.07, at the option of
the Holder thereof, Stock Purchase Contracts underlying Corporate Units may be settled early
(“Early Settlement”) at any time (other than during a Blackout Period) on or prior to the second
Business Day immediately preceding any Stock Purchase Date; provided that no Early Settlement will
be permitted pursuant to this Section 5.07 unless, at the time such Early Settlement is effected,
there is an effective Registration Statement with respect to any securities to be issued and
delivered in connection with such Early Settlement, if such a Registration Statement is required
(in the view of counsel, which need not be in the form of a written opinion, for the Company) under
the Securities Act. If such a Registration Statement is so required, the Company covenants and
agrees to use commercially reasonable efforts to (i) have in effect a Registration Statement
covering any securities to be delivered in respect of the Stock Purchase Contracts being settled
and (ii) provide a Prospectus in connection therewith, in each case in a form that may be used in
connection with such Early Settlement.

     (b) In order to exercise the right to effect Early Settlement with respect to any Stock
Purchase Contracts, the Holder of the Certificate evidencing Equity Units shall deliver such
Certificate on or prior to the second Business Day immediately preceding any Stock Purchase Date to
the Purchase Contract Agent at the Corporate Trust Office duly endorsed for transfer to the Company
or in blank with the “Election to Settle Early” form on the reverse thereof duly completed and
accompanied by payment

Purchase Contract Agreement

46

 

(payable to the Company in immediately available funds) in an amount (the
"Early Settlement Amount”) equal to the sum of:

     (i) (A) the Stated Amount multiplied by (B) the number of Stock Purchase Contracts with
respect to which the Holder has elected to effect Early Settlement, plus

     (ii) if such delivery is made with respect to any Stock Purchase Contracts during the
period from the close of business on any Record Date next preceding any Payment Date to the
opening of business on such Payment Date, an amount equal to the Contract Adjustment Payments
payable on such Payment Date with respect to such Stock Purchase Contracts, unless such
Contract Adjustment Payment has been deferred pursuant to Section 5.11.

     Except as provided in the immediately preceding sentence, no payment shall be made upon Early
Settlement of any Stock Purchase Contract on account of any Contract Adjustment Payments accrued on
such Stock Purchase Contract or on account of any dividends on the Common Stock issued upon such
Early Settlement. If the foregoing requirements are first satisfied with respect to Stock Purchase
Contracts underlying any Equity Units by 5:00 p.m. (New York City time) on a Business Day, such day
shall be the “Early Settlement Date” with respect to such Equity Units and if such requirements are
first satisfied after 5:00 p.m. (New York City time) on a Business Day or on a day that is not a
Business Day, the “Early Settlement Date” with respect to such Equity Units shall be the next
succeeding Business Day.

     Upon the receipt of such Certificate and Early Settlement Amount from the Holder, the Purchase
Contract Agent shall pay to the Company such Early Settlement Amount, the receipt of which payment
the Company shall confirm in writing. The Purchase Contract Agent shall then, in accordance with
Section 5.06 of the Pledge Agreement, notify the Collateral Agent that (A) such Holder has elected
to effect an Early Settlement, which notice shall set forth the number of
such Stock Purchase Contracts as to which such Holder has elected to effect Early Settlement
and (B) the Purchase Contract Agent has received from such Holder, and paid to the Company as
confirmed in writing by the Company, the related Early Settlement Amount.

     Holders of Equity Units may only effect Early Settlement pursuant to this Section 5.07 in
integral multiples of 40 Equity Units.

     Upon Early Settlement of the Stock Purchase Contracts, the rights of the Holders to receive
and the obligation of the Company to pay any Contract Adjustment Payments (including any accrued
and unpaid Contract Adjustment Payments) with respect to such Stock Purchase Contracts shall
immediately and automatically terminate, provided that if such Early Settlement occurs after the
close of business on a Record Date and on or prior to the next succeeding Payment Date, then the
Contract Adjustment Payment due and payable on such Payment Date will be paid on such Payment Date
to the Person who was the record holder of the applicable Equity Units on the applicable Record
Date.

     (c) Upon Early Settlement of Stock Purchase Contracts by a Holder of the related Equity Units,
the Company shall issue, and the Holder shall be entitled to receive, a number of newly issued or
treasury shares of Common Stock equal to the Minimum Settlement Rate, as adjusted in the same
manner and the same time as the Fixed Settlement Rates are adjusted (the “Early Settlement Rate”).

     (d) No later than the third Business Day after the applicable Early Settlement Date, the
Company shall cause:

Purchase Contract Agreement

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     (i) the shares of Common Stock issuable upon Early Settlement of Stock Purchase
Contracts to be issued and delivered, together with payment in lieu of any fraction of a
share, as provided in Section 5.08; and

     (ii) the related Pledged Debentures, in the case of Corporate Units, or the related
Pledged Treasury Securities, in the case of Treasury Units, to be released from the Pledge by
the Collateral Agent, free and clear of the Company’s security interest therein, and
transferred, in each case, to the Purchase Contract Agent for delivery to the Holder thereof
or its designee.

     (e) Upon Early Settlement of any Stock Purchase Contracts, and subject to receipt of shares of
Common Stock from the Company and the Debentures or Qualifying Treasury Securities, as the case may
be, from the Securities Intermediary, as applicable, the Purchase Contract Agent shall, in
accordance with the instructions provided by the Holder thereof on the applicable form of Election
to Settle Early on the reverse of the Certificate evidencing the related Equity Units:

     (i) transfer to the Holder the Debentures or Treasury Securities, as the case may be,
forming a part of such Equity Units, and

     (ii) deliver to the Holder by book-entry transfer or in the form of a certificate or
certificates for the full number of shares of Common Stock issuable upon such Early
Settlement, together with payment in lieu of any fraction of a share, as provided in Section
5.08, as received from the Company.

     (f) In the event that Early Settlement is effected with respect to Stock Purchase Contracts
underlying less than all the Equity Units evidenced by a Certificate, upon such Early Settlement
the Company shall execute and the Purchase Contract Agent shall execute on behalf of the Holder,
authenticate and deliver to the Holder thereof, at the expense of the Company, a Certificate
evidencing the Equity Units as to which Early Settlement was not effected.

     (g) A Holder of an Equity Unit who effects Early Settlement may elect to have the Separate
Debentures remarketed in accordance with the provisions of Section 5.02.

     Section 5.08 No Fractional Shares.

     No fractional shares of Common Stock shall be issued or delivered upon settlement on any Stock
Purchase Date, or upon Early Settlement or Cash Merger Early Settlement of any Stock Purchase
Contracts. If Certificates evidencing more than one Stock Purchase Contract shall be surrendered
for settlement at one time by the same Holder, the number of full shares of Common Stock that shall
be delivered upon settlement shall be computed on the basis of the aggregate number of Stock
Purchase Contracts evidenced by the Certificates so surrendered. Instead of any fractional share
of Common Stock that would otherwise be deliverable upon settlement of any Stock Purchase Contracts
on any Stock Purchase Date, or upon Early Settlement or Cash Merger Early Settlement, the Company,
through the Purchase Contract Agent, shall make a cash payment in respect of such fractional
interest in an amount equal to the percentage of such fractional share multiplied by the Closing
Price of the Common Stock as of the Trading Day immediately preceding such Stock Purchase Date, or
as of the third Trading Day preceding such Early Settlement or Cash Merger Early Settlement. The
Company shall provide the Purchase Contract Agent from time to time with sufficient funds to permit
the Purchase Contract Agent to make all cash payments required by this Section 5.08 in a timely
manner.

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     Section 5.09 Charges and Taxes.

     The Company will pay all stock transfer and similar taxes attributable to the initial issuance
and delivery of the shares of Common Stock pursuant to the Stock Purchase Contracts; provided,
however, that the Company shall not be required to pay any such tax or taxes that may be payable in
respect of any exchange of, or substitution for, a Certificate evidencing Equity Units or any
issuance of a share of Common Stock in a name other than that of the registered Holder of a
Certificate surrendered in respect of the Equity Units evidenced thereby, other than in the name of
the Purchase Contract Agent, as custodian for such Holder, and the Company shall not be required to
issue or deliver such certificate or share of Common Stock unless or until the Person or Persons
requesting the transfer or issuance thereof shall have paid to the Company the amount of such tax
or shall have established to the satisfaction of the Company that such tax has been paid.

     Section 5.10 Contract Adjustment Payments.

     (a) Subject to Section 5.10(d) and Section 5.11, the Company shall pay, on each Payment Date,
the Contract Adjustment Payments (net of any withholding tax required by law to be withheld by the
Company on such payments, which shall be remitted to the appropriate taxing jurisdiction and shall
be treated as if paid hereunder) payable in respect of each Stock Purchase Contract to the Person
in whose name a Certificate is registered at the close of business on the Record Date. The
Contract Adjustment Payments will be payable at the office of the Purchase Contract Agent in the
Borough of Manhattan, New York City maintained for that purpose. Contract Adjustment Payments will
be payable, at the option of the Company, by check mailed to the address of the Person entitled
thereto at such Person’s address as it appears on the Security Register, or, at the Company’s
option, by wire transfer to the account designated by such Person by a prior written notice to the
Purchase Contract Agent. If any date on which Contract Adjustment Payments are to be made is not a
Business Day, then payment of the Contract Adjustment Payments payable on such date will be made on
the next succeeding day that is a Business Day (and without any interest in respect of such delay).
Contract Adjustment Payments payable for any period will be computed on the basis of a 360-day
year of twelve 30-day months. The Contract Adjustment Payments will accrue from May 16, 2008.

     (b) Upon the occurrence of a Termination Event, the Company’s obligation to pay future
Contract Adjustment Payments (including any accrued Contract Adjustment Payments) shall cease
without any further action of any Person.

     (c) Each Certificate delivered under this Agreement upon registration of transfer of or in
exchange for or in lieu of (including as a result of a Collateral Substitution or the recreation of
Corporate Units) any other Certificate shall carry the right to accrued and unpaid Contract
Adjustment Payments, which right was carried by the Stock Purchase Contracts underlying such other
Certificates.

     (d) In the case of any Equity Units with respect to which Early Settlement or Cash Merger
Early Settlement of the underlying Stock Purchase Contract is effected on a date that is after any
Record Date and prior to or on the next succeeding Payment Date, Contract Adjustment Payments
otherwise payable on such Payment Date shall be payable on such Payment Date notwithstanding such
Early Settlement or Cash Merger Early Settlement, and such Contract Adjustment Payments shall be
paid to the Person in whose name the Certificate evidencing such Equity Units is registered at the
close of business on such Record Date, it being understood that the Holder electing Early
Settlement must make the required payment in order to elect Early Settlement and the applicable
Purchase Price payable by the Holder electing Cash Merger Early Settlement shall not be reduced by
the amount of such payment.

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Except as otherwise expressly provided in the immediately preceding sentence, Contract
Adjustment Payments that would otherwise be payable after the Early Settlement or Cash Merger Early
Settlement Date with respect to such Stock Purchase Contract shall not be payable.

     (e) The Company’s obligations with respect to Contract Adjustment Payments will be
subordinated and junior in right of payment to the Company’s obligations under any existing or
future Senior Debt as provided in this Section 5.10. The Company’s obligations with respect to
Contract Adjustment Payments will rank pari passu with the Company’s Debentures, 6.25% Series A-1
Junior Subordinated Debentures, 5.75% Series A-2 Junior Subordinated Debentures, 4.875% Series A-3
Junior Subordinated Debentures, 6.45% Series A-4 Junior Subordinated Debentures and 7.70% Series
A-5 Junior Subordinated Debentures.

     (f) In the event of (a) any insolvency or bankruptcy case or proceeding, or any receivership,
liquidation, reorganization or similar case or proceeding in connection therewith, relative to the
Company or to its creditors, as such, or to its assets, or (b) any liquidation, dissolution or
other winding up of the Company, whether voluntary or involuntary and whether or not involving
insolvency or bankruptcy, or (c) any assignment for the benefit of creditors or any other
marshalling of assets and liabilities of the Company, then and in any such event the holders of
Senior Debt shall be entitled to receive payment in full of all amounts due or to become due on or
in respect of all Senior Debt (including any interest accruing thereon after the commencement of
any such case of proceeding), or provision shall be made for such payment in cash or cash
equivalents or otherwise in a manner satisfactory to the holders of Senior Debt, before the Holders
are entitled to receive any Contract Adjustment Payment, and to that end the holders of Senior Debt
shall be entitled to receive, for application to the payment thereof, any payment of distribution
of any kind or character, whether in cash, property or securities, including any such payment or
distribution which may be payable or deliverable by reason of the payment of any other indebtedness
of the Company being subordinated to the payment of the Contract Adjustment Payment, which may be
payable of deliverable in respect of the Contract Adjustment Payment in any such case, proceeding,
liquidation, dissolution or other winding up event. The consolidation of the Company with, or the
merger of the Company into, or the conveyance, transfer or lease by the Company of its properties
and assets substantially as an entirety to, another Person, or the liquidation or dissolution of
the Company following any such conveyance or transfer, shall not be deemed a dissolution, winding
up, liquidation, reorganization, assignment for the benefit of creditors or marshalling of assets
and liabilities of the Company for the purposes of this paragraph (f).

     (g) Subject to the last sentence of this paragraph (g), in the event that any event of default
with respect to any Senior Debt specified in clause (i) of the definition thereof in a principal
amount in excess of $100,000,000 shall have occurred and be continuing and resulted in the
acceleration of the payment of the principal of such Senior Debt prior to the date on which it
would otherwise have become due and payable (provided that if such declaration of acceleration
shall have been rescinded or annulled, then such acceleration shall be deemed not to have occurred
for the purpose of this paragraph (g)), then no Contract Adjustment Payment (including any payment
which may be payable by reason of the payment of any other indebtedness of the Company being
subordinated to the payment of the Contract Adjustment Payments) shall be made by the Company. No
acceleration of any Senior Debt shall be deemed to be an acceleration of the kind specified above
if (x) the Company shall be disputing the occurrence or continuation of such acceleration and (y)
no final judgment holding that such acceleration has occurred shall have been issued. For this
purpose, a “final judgment” means a judgment that is issued by a court having jurisdiction over the
Company, is binding on the Company, is in full force and effect and is not subject to judicial
appeal or review (including because the time within which a party may seek

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appeal or review has expired), provided that, if any such judgment has been issued but is
subject to judicial appeal or review, it shall nevertheless be deemed to be a final judgment unless
the Company shall in good faith be prosecuting such appeal or a proceeding for such review.

     (h) For purposes of Section 5.10(f) through (q), the words “cash, property or securities”
shall be deemed not to include shares of stock of the Company as reorganized or readjusted, or
securities of the Company or any other Person provided for by a plan of reorganization or
readjustment, the payment of which is subordinated at least to the extent provided in Section
5.10(f) through (q) with respect to such Contract Adjustment Payments on the Equity Units to the
payment of all existing and future Senior Debt that may at the time be outstanding.

     (i) Subject to the irrevocable payment in full of all existing and future Senior Debt, the
Holders of the Equity Units shall be subrogated (equally and ratably with the holders of all
obligations of the Company that by their express terms are subordinated to Senior Debt of the
Company to the same extent as payment of the Contract Adjustment Payments in respect of the Stock
Purchase Contracts underlying the Equity Units is subordinated and that are entitled to like rights
of subrogation) to the rights of the holders of Senior Debt to receive payments or distributions of
cash, property or securities of the Company applicable to the Senior Debt until all such Contract
Adjustment Payments owing on the Equity Units shall be paid in full, and as between the Company,
its creditors other than holders of such Senior Debt and the Holders, no such payment or
distribution made to the holders of Senior Debt by virtue of Section 5.10(f) through (q) that
otherwise would have been made to the Holders shall be deemed to be a payment by the Company on
account of such Senior Debt, it being understood that the provisions of Section 5.10(f) through (q)
are and are intended solely for the purpose of defining the relative rights of the Holders, on the
one hand, and the holders of Senior Debt, on the other hand.

     (j) Nothing contained in Section 5.10(f) through (q) or elsewhere in this Agreement or in the
Equity Units is intended to or shall impair, as among the Company, its creditors other than the
holders of Senior Debt and the Holders, the obligation of the Company, which is absolute and
unconditional, to pay to the Holders such Contract Adjustment Payments on the Equity Units as and
when the same shall become due and payable in accordance with their terms, or is intended to or
shall affect the relative rights of the Holders and creditors of the Company other than the holders
of Senior Debt, nor shall anything herein or therein prevent the Purchase Contract Agent or any
Holder from exercising all remedies otherwise permitted by applicable law upon default under this
Agreement, subject to the rights, if any, under Section 5.10(f) through (q), of the holders of
Senior Debt in respect of cash, property or securities of the Company received upon the exercise of
any such remedy.

     (k) Upon payment or distribution of assets of the Company referred to in Section 5.10(f)
through (q), the Purchase Contract Agent and the Holders shall be entitled to rely upon any order
or decree made by any court of competent jurisdiction in which any such dissolution, winding up,
liquidation or reorganization proceeding affecting the affairs of the Company is pending or upon a
certificate of the trustee in bankruptcy, receiver, assignee for the benefit of creditors,
liquidating trustee or Purchase Contract Agent or other person making any payment or distribution,
delivered to the Purchase Contract Agent or to the Holders, for the purpose of ascertaining the
Persons entitled to participate in such payment or distribution, the holders of the Senior Debt and
other indebtedness of the Company, the amount thereof or payable thereon, the amount or amounts
paid or distributed thereon and all other facts pertinent thereto or to Section 5.10(f) through
(q).

     (l) The Purchase Contract Agent shall be entitled to rely on the delivery to it of a written
notice by a Person representing himself to be a holder of Senior Debt (or a trustee or
representative on

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behalf of such holder) to establish that such notice has been given by a holder of Senior Debt
or a trustee or representative on behalf of any such holder or holders. In the event that the
Purchase Contract Agent determines in good faith that further evidence is required with respect to
the right of any Person as a holder of Senior Debt to participate in any payment or distribution
pursuant to Section 5.10(f) through (q), the Purchase Contract Agent may request such Person to
furnish evidence to the reasonable satisfaction of the Purchase Contract Agent as to the amount of
Senior Debt held by such Person, the extent to which such Person is entitled to participate in such
payment or distribution and any other facts pertinent to the rights of such Person under Section
5.10(f) through (q), and, if such evidence is not furnished, the Purchase Contract Agent may defer
payment to such Person pending judicial determination as to the right of such Person to receive
such payment.

     (m) Nothing contained in Section 5.10(f) through (q) shall affect the obligations of the
Company to make, or prevent the Company from making, payment of the Contract Adjustment Payments,
except as otherwise provided in this Section 5.10(f) through (q).

     (n) Each Holder of Equity Units, by its acceptance thereof, shall be deemed to have authorized
and directed the Purchase Contract Agent on its behalf to take such action as may be necessary or
appropriate to effectuate the subordination provided in Section 5.10(f) through (q) and appointed
the Purchase Contract Agent its attorney-in-fact, as the case may be, for any and all such
purposes.

     (o) The Company shall give prompt written notice to the Purchase Contract Agent of any fact
known to the Company that would prohibit the making of any payment of moneys to or by the Purchase
Contract Agent in respect of the Equity Units pursuant to the provisions of this Section.
Notwithstanding the provisions of Section 5.10(f) through (q) or any other provisions of this
Agreement, the Purchase Contract Agent shall not be charged with knowledge of the existence of any
facts that would prohibit the making of any payment of moneys to or by the Purchase Contract Agent,
or the taking of any other action by the Purchase Contract Agent, unless and until the Purchase
Contract Agent shall have received written notice thereof mailed or delivered to the Purchase
Contract Agent at its Corporate Trust Office department from the Company, any Holder, or the holder
or representative of any Senior Debt; provided that if at least two Business Days prior to the date
upon which by the terms hereof any such moneys may become payable for any purpose, the Purchase
Contract Agent shall not have received with respect to such moneys the notice provided for in this
Section, then, anything herein contained to the contrary notwithstanding, the Purchase Contract
Agent shall have full power and authority to receive such moneys and to apply the same to the
purpose for which they were received and shall not be affected by any notice to the contrary that
may be received by it within two Business Days prior to or on or after such date.

     (p) The Purchase Contract Agent in its individual capacity shall be entitled to all the rights
set forth in this Section with respect to any Senior Debt at the time held by it, to the same
extent as any other holder of Senior Debt and nothing in this Agreement shall deprive the Purchase
Contract Agent of any of its rights as such holder.

     (q) No right of any present or future holder of any Senior Debt to enforce the subordination
herein shall at any time or in any way be prejudiced or impaired by any act or failure to act on
the part of the Company or by any noncompliance by the Company with the terms, provisions and
covenants of this Agreement, regardless of any knowledge thereof which any such holder may have or
be otherwise charged with.

     Without in any way limiting the generality of the foregoing paragraph, the holders of Senior
Debt may, at any time and from time to time, without the consent of or notice to the Purchase
Contract Agent

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or the Holders, without incurring responsibility to the Holders and without impairing or
releasing the subordination provided by this Section 5.10 or the obligations hereunder of the
Holders to the holders of Senior Debt, do any one or more of the following: (i) change the manner,
place or terms of payment or extend the time of payment of, or renew or alter, Senior Debt or
otherwise amend or supplement in any manner Senior Debt or any instrument evidencing the same or
any agreement under which Senior Debt is outstanding; (ii) sell, exchange, release or otherwise
deal with any property pledged, mortgaged or otherwise securing Senior Debt; (iii) release any
Person liable in any manner for the collection of Senior Debt; and (iv) exercise or refrain from
exercising any rights against the Company and any other Person.

     (r) Nothing in this Section 5.10 shall apply to claims of, or payments to, the Purchase
Contract Agent under or pursuant to Section 7.07.

     (s) With respect to the holders of existing and future Senior Debt, (i) the duties and
obligations of the Purchase Contract Agent shall be determined solely by the express provisions of
this Agreement; (ii) the Purchase Contract Agent shall not be liable to any such holders if it
shall, acting in good faith, mistakenly pay over or distribute to the Holders or to the Company or
any other Person cash, property or securities to which any holders of existing and future Senior
Debt shall be entitled by virtue of this Section 5.10 or otherwise; (iii) no implied covenants or
obligations shall be read into this Agreement against the Purchase Contract Agent; and (iv) the
Purchase Contract Agent shall not be deemed to be a fiduciary as to such holders.

     Section 5.11 Deferral of Contract Adjustment Payments.

     (a) The Company shall have the right, at any time prior to August 1, 2011, to defer the
payment of any or all of the Contract Adjustment Payments otherwise payable on any Payment Date,
but only if the Company shall give the Holders and the Purchase Contract Agent written notice of
its election to defer each such Contract Adjustment Payment (specifying the amount to be deferred)
at least one Business Day prior to such Record Date. Any failure of the Company to make any
Contract Adjustment Payment within five Business Days of the Payment Date shall be deemed without
any further action of any Person to commence a deferral period with respect to that Contract
Adjustment Payment. Any Contract Adjustment Payments so deferred shall, to the extent permitted by
law, accrue interest thereon at the rate of 5.67% per year (computed on the basis of a 360-day year
of twelve 30-day months), compounding on each succeeding Payment Date, until paid in full (such
deferred installments of Contract Adjustment Payments, if any, together with the additional
Contract Adjustment Payments, if any, accrued thereon, being referred to herein as the “Deferred
Contract Adjustment Payments”). Deferred Contract Adjustment Payments, if any, shall be due on the
next succeeding Payment Date except to the extent that payment is deferred pursuant to this Section
5.11. No Contract Adjustment Payments may be deferred to a date that is after August 1, 2011 and
no such deferral period may end other than on a Payment Date. If the Stock Purchase Contracts are
terminated upon the occurrence of a Termination Event, the Holder’s right to receive Contract
Adjustment Payments, if any, and any Deferred Contract Adjustment Payments, will terminate.

     (b) In the event that the Company elects to defer the payment of Contract Adjustment Payments
on the Stock Purchase Contracts until a Payment Date prior to the Third Stock Purchase Date, then
all Deferred Contract Adjustment Payments, if any, shall be payable to the registered Holders as of
the close of business on the Record Date immediately preceding such Payment Date. The Company may
elect to make payment of deferred Contract Adjustment Payments to Holders who are registered at the
close of business on a “Special Record Date” which shall be fixed to be not more than 15 Business
Days and not less than 10 Business Days prior to the date of the proposed payment. The Special
Record Date

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shall not occur less than 10 Business Days after receipt by the Purchase Contract Agent of the
notice of the proposed payment by the Company. Upon receipt of such notice, the Purchase Contract
Agent shall promptly notify such registered Holders not less than 10 days prior to the Special
Record Date. If the Company establishes a Special Record Date, the Contract Adjustment Payments
will cease to be payable to Holders of record on the applicable Record Date and instead will be
payable to Holders of record on the Special Record Date.

     (c) In the event that the Company elects to defer the payment of Contract Adjustment Payments
on the Third Stock Purchase Date, each Holder will receive in respect of such deferred payments on
such Stock Purchase Date in lieu of a cash payment, in the sole discretion of the Company, either
(i) a number of shares of Common Stock (in addition to a number of shares of Common Stock per
Equity Units equal to the Settlement Rate) equal to (A) the aggregate amount of Deferred Contract
Adjustment Payments payable to such Holder (net of any required tax withholding on such Deferred
Contract Adjustment Payment, which shall be remitted to the appropriate taxing jurisdiction)
divided by (B) the greater of (x) the Applicable Market Value and (y) $12.67, subject in each case
to adjustment in the same manner and under the same circumstances as the Fixed Settlement Rates
pursuant to Section 5.04, or (ii) Additional Debentures that will (A) have a principal amount equal
to the aggregate amount of Deferred Contract Adjustment Payments, (B) mature on the later of
August 1, 2014 or the date that is five years after commencement of the deferral period, (C) bear
interest at an annual rate equal to the then market rate of interest for similar instruments (not
to exceed 10%), as determined by a nationally recognized investment banking firm selected by the
Company, (D) rank pari passu with the Debentures and be issued as a series of debt securities under
the Base Indenture, (E) provide for optional deferral on the same basis as the Debentures and
(F) be redeemable at the option of the Company at any time at their principal amount plus accrued
and unpaid interest through the date of redemption.

     (d) No fractional shares of Common Stock will be issued by the Company with respect to the
payment of Deferred Contract Adjustment Payments on the Third Stock Purchase Date. In lieu of
fractional shares otherwise issuable with respect to such payment of Deferred Contract Adjustment
Payments, the Holder will be entitled to receive an amount in cash as provided in Section 5.08.

     (e) In the event the Company gives notice of a deferral period as provided in Section 5.11(a)
or a deferral period has commenced then, until the earlier of (x) the Termination Date, (y) the
date on which the Deferred Contract Adjustment Payments have been paid or (z) the date on which the
Additional Debentures are no longer outstanding, the Company shall be subject to the restrictions
set forth in Section 2.1(g) of each Supplemental Indenture.

ARTICLE VI

RIGHTS AND REMEDIES OF HOLDERS

     Section 6.01 Unconditional Right of Holders to Receive Contract Adjustment Payments and to
Purchase Shares of Common Stock.

     Each Holder of an Equity Unit shall have the right, which is absolute and unconditional,
(i) subject to Article V (and to any withholding tax), to receive each Contract Adjustment Payment
with respect to the Stock Purchase Contract comprising part of such Equity Unit on the respective
Payment Date for such Equity Unit and (ii) except upon and following a Termination Event, to
purchase shares of Common Stock pursuant to such Stock Purchase Contract on each Stock Purchase
Date and, in each such case, to institute suit for the enforcement of any such right to receive
Contract Adjustment Payments and

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the right to purchase shares of Common Stock, and such rights shall not be impaired without
the consent of such Holder.

     Section 6.02 Restoration of Rights and Remedies.

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

     Section 6.03 Rights and Remedies Cumulative.

     Except as otherwise provided with respect to the replacement or payment of mutilated,
destroyed, lost or stolen Certificates in the last paragraph of Section 3.10, no right or remedy
herein conferred upon or reserved 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 6.04 Delay or Omission Not Waiver.

     No delay or omission of any Holder to exercise any right upon a default or remedy upon a
default shall impair any such right or remedy or constitute a waiver of any such right. Every
right and remedy given by this Article VI or by law to the Holders may be exercised from time to
time, and as often as may be deemed expedient, by such Holders.

     Section 6.05 Undertaking for Costs.

     All parties to this Agreement agree, and each Holder of an Equity Unit, by its acceptance of
such Equity Unit 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 Agreement, or in any suit against
the Purchase Contract Agent for any action taken, suffered or omitted by it as Purchase Contract
Agent, 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 and costs 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; provided that the provisions
of this Section shall not apply to any suit instituted by the Purchase Contract Agent or to any
suit instituted by the Company.

     Section 6.06 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 Agreement; 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

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impede the execution of any power herein granted to the Purchase Contract Agent or the
Holders, but will suffer and permit the execution of every such power as though no such law had
been enacted.

ARTICLE VII

THE PURCHASE CONTRACT AGENT

     Section 7.01 Certain Duties and Responsibilities.

     (a) The Purchase Contract Agent:

     (i) undertakes to perform, with respect to the Equity Units, such duties and only such
duties as are or will be specifically set forth in this Agreement, the Pledge Agreement and
the Remarketing Agreement to be performed by the Purchase Contract Agent and no implied
covenants or obligations shall be read into this Agreement, the Pledge Agreement or any
Remarketing Agreement against the Purchase Contract Agent; and

     (ii) in the absence of bad faith or negligence on its part, may, with respect to the
Equity Units, conclusively rely, as to the truth of the statements and the correctness of
the opinions expressed therein, upon certificates or opinions furnished to the Purchase
Contract Agent and conforming to the requirements of this Agreement or the Pledge Agreement
or the Remarketing Agreement, as applicable, but in the case of any certificates or opinions
which by any provision hereof are specifically required to be furnished to the Purchase
Contract Agent, the Purchase Contract Agent shall be under a duty to examine the same to
determine whether or not they conform to the requirements of this Agreement, the Pledge
Agreement or any Remarketing Agreement, as applicable (but need not confirm or investigate
the accuracy of the mathematical calculations or other facts stated therein).

     (b) No provision of this Agreement, the Pledge Agreement or the Remarketing Agreement shall be
construed to relieve the Purchase Contract Agent from liability for its own negligent action, its
own negligent failure to act, or its own willful misconduct, except that:

     (i) this subsection shall not be construed to limit the effect of subsection (a) of
this Section;

     (ii) the Purchase Contract Agent shall not be liable for any error of judgment made in
good faith by a Responsible Officer, unless the Purchase Contract Agent was negligent in
ascertaining the pertinent facts; and

     (iii) no provision of this Agreement or the Pledge Agreement or the Remarketing
Agreement shall require the Purchase Contract Agent to expend or risk its own funds or
otherwise incur any financial liability in the performance of any of its duties hereunder or
thereunder, 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.

     (c) Whether or not therein expressly so provided, every provision of this Agreement, the
Pledge Agreement and the Remarketing Agreement relating to the conduct or affecting the liability
of or affording protection to the Purchase Contract Agent shall be subject to the provisions of
this Article.

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     (d) The Purchase Contract Agent is authorized to execute and deliver the Pledge Agreement and
the Remarketing Agreement in its capacity as Purchase Contract Agent.

     Section 7.02 Notice of Default.

     Upon any Responsible Officer of the Purchase Contract Agent becoming aware of a material
default by the Company under this Agreement and so notifying the Company, or Holders of not less
than 25% of the Outstanding Equity Units notifying the Company and the Purchase Contract Agent of
such a material default, the Company shall have 60 days from the date of such notice to cure the
potential default. If the Company fails to cure the material default within the 60-day period,
then within 30 days after the expiration of such 60-day period, the Purchase Contract Agent shall
transmit by mail to the Company and the Holders of Equity Units, as their names and addresses
appear in the Security Register, notice of such default hereunder, unless such material default
shall have been cured or waived.

     Section 7.03 Certain Rights of Purchase Contract Agent.

     Subject to the provisions of Section 7.01:

     (a) the Purchase Contract Agent may, in the absence of bad faith, 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, Debentures, 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 an Officers’ Certificate, Issuer Order or Issuer Request, and any resolution of the Board of
Directors of the Company may be sufficiently evidenced by a Board Resolution;

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

     (d) the Purchase Contract Agent may consult with counsel of its selection and the advice of
such counsel or any Opinion of Counsel shall be full and complete authorization and protection in
respect of any action taken, suffered or omitted by it hereunder, or under the Pledge Agreement or
the Remarketing Agreement, in good faith and in reliance thereon;

     (e) the Purchase Contract Agent 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 Purchase Contract Agent may make reasonable further inquiry or
investigation into such facts or matters related to the execution, delivery and performance of the
Stock Purchase Contracts, and, if the Purchase Contract Agent makes such further inquiry or
investigation, it shall be entitled to examine the relevant books, records and premises of the
Company, personally or by agent or attorney;

     (f) the Purchase Contract Agent may execute any of the powers hereunder or perform any duties
hereunder, or under the Pledge Agreement or the Remarketing Agreement, either directly or by or

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through agents, attorneys, custodians or nominees or an Affiliate and the Purchase Contract
Agent shall not be responsible for any misconduct or negligence on the part of any agent, attorney,
custodian or nominee or an Affiliate appointed with due care by it hereunder;

     (g) the Purchase Contract Agent shall be under no obligation to exercise any of the rights or
powers vested in it by this Agreement at the request or direction of any of the Holders pursuant to
this Agreement, unless such Holders shall have offered to the Purchase Contract Agent security or
indemnity reasonably satisfactory to the Purchase Contract Agent against the costs, expenses and
liabilities which might be incurred by it in compliance with such request or direction;

     (h) the Purchase Contract Agent shall not be liable for any action taken, suffered, or omitted
to be taken by it in the absence of bad faith, negligence or willful misconduct by it;

     (i) the Purchase Contract Agent shall not be deemed to have notice of any default hereunder
unless a Responsible Officer of the Purchase Contract Agent has actual knowledge thereof or unless
written notice of any event that is in fact such a default is received by the Purchase Contract
Agent at the Corporate Trust Office of the Purchase Contract Agent, and such notice references the
Equity Units and this Agreement;

     (j) the Purchase Contract Agent may request that the Company deliver an Officers’ Certificate
setting forth the names of individuals and/or titles of officers authorized at such time to take
specified actions pursuant to this Agreement, which Officers’ Certificate may be signed by any
person authorized to sign an Officers’ Certificate, including any person specified as so authorized
in any such certificate previously delivered and not superseded;

     (k) the rights, privileges, protections, immunities and benefits given to the Purchase
Contract Agent, including, without limitation, its right to be indemnified, are extended to, and
shall be enforceable by, the Purchase Contract Agent in each of its capacities hereunder, and to
each agent, custodian and other Person employed to act hereunder;

     (l) the Purchase Contract Agent shall not be required to initiate or conduct any litigation or
collection proceedings hereunder and shall have no responsibilities with respect to any default
hereunder except as expressly set forth herein;

     (m) in each case that the Purchase Contract Agent may or is required hereunder or under the
Pledge Agreement or the Remarketing Agreement to take any action, including without limitation to
make any determination or judgment, to give consents, to exercise rights, powers or remedies, or
otherwise to act hereunder or thereunder, the Purchase Contract Agent may seek direction from the
Holders of a majority in Stated Amount of the Outstanding Equity Units. The Purchase Contract
Agent 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 from the Holders of a majority in Stated Amount of the
Outstanding Equity Units. If the Purchase Contract Agent shall request direction from the Holders
of a majority in Stated Amount of the Outstanding Equity Units with respect to any action, the
Purchase Contract Agent shall be entitled to refrain from such action unless and until such the
Purchase Contract Agent shall have received direction from the Holders of a majority in Stated
Amount of the Outstanding Equity Units, and the Purchase Contract Agent shall not incur liability
to any Person by reason of so refraining; and

     (n) in no event shall the Purchase Contract Agent be responsible or liable for special,
indirect, or consequential loss or damage of any kind whatsoever (including, but not limited to,
loss of profit)

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irrespective of whether the Purchase Contract Agent has been advised of the likelihood of such
loss or damage and regardless of the form of action.

     Section 7.04 Not Responsible for Recitals or Issuance of Equity Units.

     The recitals contained herein, in the Pledge Agreement, the Remarketing Agreement and in the
Certificates shall be taken as the statements of the Company, and the Purchase Contract Agent
assumes no responsibility for their accuracy or validity. The Purchase Contract Agent makes no
representations as to the validity or sufficiency of either this Agreement or of the Equity Units,
or of the Pledge Agreement or the Pledge or the Collateral (other than for its certificates of
authentication of the Equity Units and its execution of the Certificates on behalf of the Holders
as attorney-in-fact) and shall have no responsibility for perfecting or maintaining the perfection
of any security interest in the Collateral. The Purchase Contract Agent shall not be accountable
for the use or application by the Company of the proceeds in respect of the Stock Purchase
Contracts.

     The Purchase Contract Agent shall only be responsible for transferring money, securities or
other property in accordance with the terms herein to the extent that such money, securities or
other property are actually received by the Purchase Contract Agent.

     Section 7.05 May Hold Equity Units.

     Any Security Registrar or any other agent of the Company, or the Purchase Contract Agent and
its Affiliates, in their individual or any other capacity, may become the owner or pledgee of
Equity Units and may otherwise deal with the Company, the Collateral Agent or any other Person with
the same rights it would have if it were not Security Registrar or such other agent, or the
Purchase Contract Agent. The Company may become the owner or pledgee of Equity Units.

     Section 7.06 Money Held in Custody.

     Money held by the Purchase Contract Agent in custody hereunder need not be segregated from the
Purchase Contract Agent’s other funds except to the extent required by law or provided herein. The
Purchase Contract Agent shall be under no obligation to invest or pay interest on any money
received by it hereunder except as otherwise provided hereunder or agreed in writing with the
Company.

     Section 7.07 Compensation and Reimbursement.

     The Company agrees:

     (a) to pay to the Purchase Contract Agent compensation for all services rendered by it
hereunder, under the Pledge Agreement and under the Remarketing Agreement as the Company and the
Purchase Contract Agent shall from time to time agree in writing;

     (b) except as otherwise expressly provided for herein, to reimburse the Purchase Contract
Agent upon its request for all reasonable expenses, disbursements and advances incurred or made by
the Purchase Contract Agent in accordance with any provision of this Agreement, the Pledge
Agreement and any Remarketing Agreement (including the reasonable compensation and the expenses and
disbursements of its agents and counsel) in connection with the negotiation, preparation, execution
and delivery and performance of this Agreement, the Pledge Agreement and any Remarketing Agreement
and any

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modification, supplement or waiver of any of the terms thereof, except any such expense,
disbursement or advance as shall have been caused by its own negligence, willful misconduct or bad
faith; and

     (c) to indemnify the Purchase Contract Agent and any predecessor Purchase Contract Agent (and
each of its directors, officers, agents and employees (collectively, the “Indemnitees”) for, and to
hold it harmless against, any loss, claim, damage, fine, penalty, liability or expense (including
reasonable fees and expenses of counsel) incurred without negligence, willful misconduct or bad
faith on its part, arising out of or in connection with the acceptance or administration of its
duties hereunder and under the Pledge Agreement and any Remarketing Agreement, including the
Indemnitees’ reasonable costs and expenses of defending themselves against any claim (whether
asserted by the Company, a Holder or any other Person) or liability in connection with the exercise
or performance of any of the Purchase Contract Agent’s powers or duties hereunder or thereunder.
In the case of any action, suit or proceeding with respect to which an Indemnitee may seek payments
pursuant to this Section 7.07, the Company, at its option, may defend such action, suit or
proceeding with counsel of its choice (which counsel shall be reasonably satisfactory to the
Indemnitee) and exercise sole and complete control over the defense of such action, suit or
proceeding.

     The provisions of this Section shall survive the resignation or removal of the Purchase
Contract Agent and the termination of this Agreement.

     Section 7.08 Corporate Purchase Contract Agent Required, Eligibility.

     There shall at all times be a Purchase Contract Agent hereunder which shall be a Person
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 (or
being a member of a bank holding company having) a combined capital and surplus of at least
$50,000,000 and subject to supervision or examination by Federal or State authority. If such Person
publishes reports of condition at least annually, pursuant to law or to the requirements of said
supervising or examining authority, then for the purposes of this Section, the combined capital and
surplus of such Person 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 Purchase Contract Agent 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 VII.

     Section 7.09 Resignation and Removal; Appointment of Successor.

     (a) No resignation or removal of the Purchase Contract Agent and no appointment of a successor
Purchase Contract Agent pursuant to this Article VII shall become effective until the acceptance of
appointment by the successor Purchase Contract Agent in accordance with the applicable requirements
of Section 7.10.

     (b) The Purchase Contract Agent may resign at any time by giving written notice thereof to the
Company 90 days prior to the effective date of such resignation. If the instrument of acceptance
by a successor Purchase Contract Agent required by Section 7.10 shall not have been delivered to
the Purchase Contract Agent within 60 days after the giving of such notice of resignation, the
resigning Purchase Contract Agent may petition, at its own expense, any court of competent
jurisdiction for the appointment of a successor Purchase Contract Agent.

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     (c) The Purchase Contract Agent may be removed at any time by Act of the Holders of a majority
in Stated Amount of the Outstanding Equity Units delivered to the Purchase Contract Agent and the
Company. If the instrument of acceptance by a successor Purchase Contract Agent required by
Section 7.10 shall not have been delivered to the Purchase Contract Agent within 60 days after such
Act, the Purchase Contract Agent being removed may petition any court of competent jurisdiction for
the appointment at the expense of the Company of a successor Purchase Contract Agent.

     (d) If at any time:

     (i) the Purchase Contract Agent shall cease to be eligible under Section 7.08 and shall
fail to resign after written request therefor by the Company or by Holders of not less than
10% of the Stated Amount of Outstanding Equity Units; or

     (ii) the Purchase Contract Agent shall become incapable of acting or shall be adjudged
a bankrupt or insolvent or a receiver of the Purchase Contract Agent or of its property
shall be appointed or any public officer shall take charge or control of the Purchase
Contract Agent 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
Purchase Contract Agent, or (ii) Holders of not less than 10% of the Stated Amount of
Outstanding Equity Units may, on behalf of all other similarly situated Holders, petition
any court of competent jurisdiction for the removal of the Purchase Contract Agent and the
appointment of a successor Purchase Contract Agent.

     (e) If the Purchase Contract Agent shall resign, be removed or become incapable of acting, or
if a vacancy shall occur in the office of Purchase Contract Agent for any cause, the Company, by a
Board Resolution, shall promptly appoint a successor Purchase Contract Agent and shall comply with
the applicable requirements of Section 7.10. If no successor Purchase Contract Agent shall have
been so appointed by the Company and accepted appointment in the manner required by Section 7.10,
Holders of not less than 10% of the Stated Amount of Outstanding Equity Units, on behalf of all
other similarly situated Holders, or the Purchase Contract Agent may petition at the expense of the
Company any court of competent jurisdiction for the appointment of a successor Purchase Contract
Agent.

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

     Section 7.10 Acceptance of Appointment by Successor.

     (a) In case of the appointment hereunder of a successor Purchase Contract Agent, every such
successor Purchase Contract Agent so appointed shall execute, acknowledge and deliver to the
Company and to the retiring Purchase Contract Agent an instrument accepting such appointment, and
thereupon the resignation or removal of the retiring Purchase Contract Agent shall become effective
and such successor Purchase Contract Agent, without any further act, deed or conveyance, shall
become vested with all the rights, powers, agencies and duties of the retiring Purchase Contract
Agent; but, on the request of the Company or the successor Purchase Contract Agent, such retiring
Purchase Contract Agent shall, upon payment of its charges, execute and deliver an instrument
transferring to such successor Purchase

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Contract Agent all the rights, powers and trusts of the retiring Purchase Contract Agent and
duly assign, transfer and deliver to such successor Purchase Contract Agent all property and money
held by such retiring Purchase Contract Agent hereunder.

     (b) Upon request of any such successor Purchase Contract Agent, the Company shall execute any
and all instruments for more fully and certainly vesting in and confirming to such successor
Purchase Contract Agent all such rights, powers and agencies referred to in subsection (a) of this
Section 7.10.

     (c) No successor Purchase Contract Agent shall accept its appointment unless at the time of
such acceptance such successor Purchase Contract Agent shall be qualified and eligible under this
Article VII.

     (d) No successor Purchase Contract Agent shall at the same time act as the Collateral Agent,
the Custodial Agent or the Securities Intermediary and the Company shall not act as the Purchase
Contract Agent.

     Section 7.11 Merger, Conversion, Consolidation or Succession to Business.

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

     Section 7.12 Preservation of Information; Communications to Holders.

     (a) The Purchase Contract Agent shall preserve, in as current a form as is reasonably
practicable, the names and addresses of Holders received by the Purchase Contract Agent in its
capacity as Security Registrar.

     (b) If Holders owning not less than 25% of the Outstanding Equity Units (herein referred to as
“Applicants”) apply in writing to the Purchase Contract Agent, and furnish to the Purchase Contract
Agent reasonable proof that each such Applicant has owned a Equity Units 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 other Holders with respect to their rights under this Agreement or under
the Equity Units and is accompanied by a copy of the form of proxy or other communication which
such applicants propose to transmit, then the Purchase Contract Agent shall mail to all the Holders
copies of the form of proxy or other communication which is specified in such request, with
reasonable promptness after a tender to the Purchase Contract Agent of the materials to be mailed
and of payment, or provision for the payment, of the reasonable expenses of such mailing.

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     Section 7.13 No Obligations of Purchase Contract Agent.

     Except to the extent otherwise expressly provided in this Agreement, the Purchase Contract
Agent assumes no obligations and shall not be subject to any liability under this Agreement, the
Pledge Agreement, the Remarketing Agreement or any Stock Purchase Contract in respect of the
obligations of the Holder of any Equity Units thereunder. The Company agrees, and each Holder of a
Certificate, by its acceptance thereof, shall be deemed to have agreed, that the Purchase Contract
Agent’s execution of the Certificates on behalf of the Holders shall be solely as agent and
attorney-in-fact for the Holders, and that the Purchase Contract Agent shall have no obligation to
perform such Stock Purchase Contracts on behalf of the Holders, except to the extent expressly
provided in Article V hereof. Anything contained in this Agreement to the contrary
notwithstanding, in no event shall the Purchase Contract Agent or its officers, directors,
employees or agents be liable under this Agreement, the Pledge Agreement or the Remarketing
Agreement to any third party for indirect, incidental, special, punitive, or consequential loss or
damage of any kind whatsoever, including lost profits, whether or not the likelihood of such loss
or damage was known to the Purchase Contract Agent and regardless of the form of action.

     Section 7.14 Tax Compliance.

     (a) The Purchase Contract Agent, on its own behalf and on behalf of the Company, will comply
with all applicable certification, returns, information reporting and withholding (including
“backup” withholding) requirements imposed by applicable tax laws, regulations or administrative
practice with respect to (i) any payments made with respect to the Equity Units or (ii) the
issuance, delivery, holding, transfer, redemption or exercise of rights under the Equity Units.
Such compliance shall include, without limitation, the preparation and timely filing of required
returns and the timely payment of all amounts required to be withheld to the appropriate taxing
authority or its designated agent.

     (b) The Purchase Contract Agent shall comply in accordance with the terms hereof with any
written direction received from the Company with respect to the execution or certification of any
required documentation and the application of such requirements to particular payments or Holders
or in other particular circumstances, and may for purposes of this Agreement conclusively rely on
any such direction in accordance with the provisions of Section 7.01(a).

     (c) Without limiting the above, if required by law, any payment (including cash or property)
and any deemed payment made under the terms of this Agreement shall be subject to withholding and
backup withholding.

     (d) Without limiting the above, any payment of Contract Adjustment Payments and distribution
of property in satisfaction of deferred Contract Adjustment Payments made to a non-United States
person (as defined under the Code) shall be subject to withholding tax unless such person
establishes an exemption from such withholding tax.

     (e) Any withholding and backup withholding of tax under this Section 7.14 shall be treated as
if made to the intended recipient in full compliance with the terms of this Agreement.

     (f) The Purchase Contract Agent shall maintain all appropriate records documenting compliance
with such requirements, and shall make such records available, on written request, to the Company
or its authorized representative within a reasonable period of time after receipt of such request.

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ARTICLE VIII

SUPPLEMENTAL AGREEMENTS

     Section 8.01 Supplemental Agreements without Consent of Holders.

     Without the consent of any Holders, the Company, when authorized by a Board Resolution, and
the Purchase Contract Agent, at any time and from time to time, may enter into one or more
agreements supplemental hereto, in form satisfactory to the Company and the Purchase Contract
Agent, to:

     (a) 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 Certificates;

     (b) add to the covenants of the Company for the benefit of the Holders, or surrender any right
or power herein conferred upon the Company;

     (c) evidence and provide for the acceptance of appointment hereunder by a successor Purchase
Contract Agent;

     (d) make provision with respect to the rights of Holders pursuant to the requirements of
Section 5.04(b);

     (e) cure any ambiguity (or formal defect) or correct or supplement any provisions herein that
may be inconsistent with any other provisions herein; or

     (f) make any other provisions with respect to such matters or questions arising under this
Agreement, provided that such action shall not adversely affect the interests of the Holders in any
material respect.

     Section 8.02 Supplemental Agreements with Consent of Holders.

     With the consent of the Holders of not less than a majority in Stated Amount of the
Outstanding Equity Units voting together as one class, including without limitation the consent of
the Holders obtained in connection with a tender or an exchange offer, by Act of said Holders
delivered to the Company and the Purchase Contract Agent, the Company, when duly authorized, and
the Purchase Contract Agent may enter into an agreement or agreements supplemental hereto for the
purpose of modifying in any manner the terms of the Stock Purchase Contracts, or the provisions of
this Agreement or the rights of the Holders in respect of the Equity Units; provided, however,
that, except as contemplated herein, no such supplemental agreement shall, without the consent of
each Holder of Outstanding Equity Units affected thereby,

     (a) subject to the Company’s right to defer any Contract Adjustment Payments pursuant to
Section 5.11, change any Payment Date;

     (b) change the amount or the type of Collateral required to be Pledged to secure a Holder’s
obligations under the Stock Purchase Contract, or otherwise materially adversely affect the
Holder’s rights in or to such Collateral or materially adversely alter such Holder’s rights in or
to such Collateral;

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     (c) change any place where, or the coin or currency in which, any Contract Adjustment Payment
is payable or reduce any Contract Adjustment Payments;

     (d) impair the right to institute suit for the enforcement of any Stock Purchase Contract or
any Contract Adjustment Payments;

     (e) reduce the number of shares of Common Stock or the amount of any other property or
securities to be purchased pursuant to any Stock Purchase Contract, increase the price to purchase
shares of Common Stock or any other property or securities upon settlement of any Stock Purchase
Contract or change the Stock Purchase Date or the right to Early Settlement or Cash Merger Early
Settlement or otherwise materially and adversely affect the Holder’s rights under the Stock
Purchase Contract; or

     (f) reduce the percentage of the Outstanding Equity Units the consent of whose Holders is
required for any modification or amendment to the provisions of this Agreement, the Stock Purchase
Contracts or the Pledge Agreement;

provided that if any amendment or proposal referred to above would adversely affect only the
Corporate Units or the Treasury Units, then only the affected class of Holders as of the record
date for the Holders entitled to vote thereon will be entitled to vote on such amendment or
proposal, and such amendment or proposal shall not be effective except with the consent of Holders
of not less than a majority of the affected class or all of the Holders of the affected class, as
applicable.

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

     Section 8.03 Execution of Supplemental Agreements.

     In executing, or accepting the additional agencies created by, any supplemental agreement
permitted by this Article VIII or the modifications thereby of the agencies created by this
Agreement, the Purchase Contract Agent shall be provided, in addition to the documents required by
Section 1.02, and (subject to Section 7.01) shall be fully authorized and protected in relying
upon, an Officers’ Certificate each stating that the execution of such supplemental agreement is
authorized or permitted by this Agreement and that any and all conditions precedent to the
execution and delivery of such supplemental agreement have been satisfied. The Purchase Contract
Agent may, but shall not be obligated to, enter into any such supplemental agreement which affects
the Purchase Contract Agent’s own rights, duties or immunities under this Agreement or otherwise.
The Purchase Contract Agent shall enter into all other supplemental agreements at the request of
the Company.

     Section 8.04 Effect of Supplemental Agreements.

     Upon the execution of any supplemental agreement under this Article VIII, this Agreement shall
be modified in accordance therewith, and such supplemental agreement shall form a part of this
Agreement for all purposes; and every Holder of Certificates theretofore or thereafter
authenticated, executed on behalf of the Holders and delivered hereunder, shall be bound thereby.

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     Section 8.05 Reference to Supplemental Agreements.

     Certificates authenticated, executed on behalf of the Holders and delivered after the
execution of any supplemental agreement pursuant to this Article VIII may, and shall if required by
the Company, bear a notation in form approved by the Company as to any matter provided for in such
supplemental agreement. If the Company shall so determine, new Certificates so modified as to
conform, in the opinion of the Company, to any such supplemental agreement may be prepared and
executed by the Company and authenticated, executed on behalf of the Holders and delivered by the
Purchase Contract Agent in exchange for outstanding Certificates.

ARTICLE IX

CONSOLIDATION, MERGER, CONVEYANCE, TRANSFER OR LEASE

     Section 9.01 Covenant Not to Consolidate, Merge, Convey, Transfer or Lease Property Except
under Certain Conditions.

     The Company covenants that it will not consolidate with or merge with and into any other
Person or convey, transfer or lease all or substantially all of its properties and assets to
another Person, unless:

     (a) either the Company shall be the continuing corporation, or the successor (if other than
the Company) or transferee shall be a Person organized and existing under the laws of the United
States of America or a State thereof or the District of Columbia and such Person shall expressly
assume all the obligations of the Company under the Stock Purchase Contracts, this Agreement, the
Pledge Agreement, the Indenture, the Debentures and the Remarketing Agreement by one or more
supplemental agreements in form reasonably satisfactory to the Purchase Contract Agent and the
Collateral Agent, executed and delivered to the Purchase Contract Agent and the Collateral Agent by
such Person; and

     (b) the Company or such successor corporation or transferee, as the case may be, shall not,
immediately after such consolidation, conversion, merger, sale, assignment, transfer, lease or
conveyance, be in default of payment obligations under the Stock Purchase Contracts, this
Agreement, the Pledge Agreement, the Indenture, the Debentures or the Remarketing Agreement or in
material default in the performance of any other covenants under any of the foregoing agreements.

     Section 9.02 Rights and Duties of Successor Person.

     In case of any such merger, consolidation, sale, assignment, transfer, lease or conveyance and
upon any such assumption by a successor Person in accordance with Section 9.01, such successor
Person shall succeed to and be substituted for the Company with the same effect as if it had been
named herein as the Company. Such successor Person thereupon may cause to be signed, and may issue
either in its own name or in the name of the Company, any or all of the Certificates evidencing
Equity Units issuable hereunder which theretofore shall not have been signed by the Company and
delivered to the Purchase Contract Agent; and, upon the order of such successor Person, instead of
the Company, and subject to all the terms, conditions and limitations in this Agreement prescribed,
the Purchase Contract Agent shall authenticate and execute on behalf of the Holders and deliver any
Certificates which previously shall have been signed and delivered by the officers of the Company
to the Purchase Contract Agent for authentication and execution, and any Certificate evidencing Equity Units which such successor
Person thereafter shall cause to be signed and delivered to the Purchase Contract Agent for that
purpose.

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     In case of any such merger, consolidation, sale, assignment, transfer, lease or conveyance,
such change in phraseology and form (but not in substance) may be made in the Certificates
evidencing Equity Units thereafter to be issued as may be appropriate.

     Section 9.03 Officers’ Certificate Given to Purchase Contract Agent.

     The Purchase Contract Agent, subject to Section 7.01 and Section 7.03, shall receive an
Officers’ Certificate as conclusive evidence that any such merger, consolidation, sale, assignment,
transfer, lease or conveyance, and any such assumption, complies with the provisions of this
Article IX and that all conditions precedent to the consummation of any such merger, consolidation,
sale, assignment, transfer, lease or conveyance have been met.

ARTICLE X

COVENANTS

     Section 10.01 Performance under Stock Purchase Contracts.

     The Company covenants and agrees for the benefit of the Holders from time to time of the
Equity Units that it will duly and punctually perform its obligations under the Stock Purchase
Contracts in accordance with the terms of the Stock Purchase Contracts and this Agreement.

     Section 10.02 Maintenance of Office or Agency.

     The Company will maintain in the Borough of Manhattan, New York City an office or agency where
Certificates may be presented or surrendered for acquisition of shares of Common Stock upon
settlement of the Stock Purchase Contracts where Certificates may be surrendered for registration
of transfer or exchange, for a Collateral Substitution or recreation of Corporate Units and where
notices and demands to or upon the Company in respect of the Equity Units and this Agreement may be
served. The Company will give prompt written notice to the Purchase Contract Agent of the location,
and any change in the location, of such office or agency. The Company initially designates the
Corporate Trust Office of the Purchase Contract Agent as such office of the Company. If at any
time the Company shall fail to maintain any such required office or agency or shall fail to furnish
the Purchase Contract Agent with the address thereof, such presentations, surrenders, notices and
demands may be made or served at the Corporate Trust Office, and the Company hereby appoints the
Purchase Contract Agent 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
Certificates may be presented or surrendered for any or all 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 the Borough of
Manhattan, New York City for such purposes. The Company will give prompt written notice to the
Purchase Contract Agent of any such designation or rescission and of any change in the location of
any such other office or agency. The Company hereby designates as the place of payment for the Equity Units the Corporate Trust
Office and appoints the Purchase Contract Agent at its Corporate Trust Office as paying agent.

Purchase Contract Agreement

67

 

     Section 10.03 Company to Reserve Common Stock.

     The Company shall at all times prior to the third Stock Purchase Date reserve and keep
available, free from preemptive rights, out of its authorized but unissued Common Stock the full
number of shares of Common Stock then issuable against tender of payment in respect of all Stock
Purchase Contracts constituting a part of the Equity Units evidenced by outstanding Certificates.

     Section 10.04 Covenants as to Common Stock.

     The Company covenants that all shares of Common Stock that may be issued against tender of
payment in respect of any Stock Purchase Contract constituting a part of the Outstanding Equity
Units will, upon issuance, be duly authorized, validly issued, fully paid and nonassessable.

     Section 10.05 Statements of Officers of the Company as to Default.

     The Company will deliver to the Purchase Contract Agent, 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 knowledge of the signers thereof the Company is in default in the performance and
observance of any of the terms, provisions and conditions hereof, and if the Company shall be in
default, specifying all such defaults and the nature and status thereof of which the Company have
knowledge.

     Section 10.06 ERISA.

     Each Holder from time to time of the Equity Units that is a Plan or who used assets of a Plan
to purchase Equity Units hereby represents that either (i) no portion of the assets used by such
Holder to acquire the Corporate Units constitutes assets of the Plan or (ii) the purchase or
holding of the Corporate Units by such purchaser or transferee will not constitute a non-exempt
prohibited transaction under Section 406 of ERISA or Section 4975 of the Code or similar violation
under any applicable laws.

     Section 10.07 Tax Treatment.

     (a) The Company covenants and agrees, for United States federal, state and local income and
franchise tax purposes, to (i) treat a Holder’s acquisition of the Corporate Units as the
acquisition of an interest in the applicable Debentures and Stock Purchase Contract constituting
the Corporate Units and (ii) treat each Holder as the owner of the applicable interest in the
Collateral Account, including the applicable Debentures, interest in the Treasury Portfolio or the
applicable Qualifying Treasury Securities.

     (b) Each Holder of an Equity Unit shall be deemed to have agreed (unless the United States
Internal Revenue Service requires a different treatment from such Holder), by acceptance of an
Equity Unit, to treat for all United States federal income tax purposes (i) itself as the owner of
the Stock Purchase Contract and the related ownership interests in the applicable Debentures or
applicable Qualifying Treasury Securities, as applicable, pledged under the Pledge Agreement, and
(ii) the Debentures as indebtedness of the Company. In addition, each initial purchaser of a
Corporate Unit for $75 shall be deemed to have agreed, for United States federal income tax purposes, to allocate $25 to each
of the undivided beneficial ownership interests in each Debenture of each series included in each
Corporate Unit and $0 to the Stock Purchase Contract.

SIGNATURES ON THE FOLLOWING PAGE

Purchase Contract Agreement

68

 

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

	 	 	 	 	 	 	 
	 	 	American International Group, Inc.	 	 
	 
	 	 	 	 	 	 
	 

	 	By	 	 	 	 
	 

	 	 	 	 

Name:
	 	 
	 

	 	 	 	Title:	 	 

	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	The Bank of New York,	 	 
	 	 	as Purchase Contract Agent	 	 
	 
	 	 	 	 	 	 
	 

	 	By	 	 	 	 
	 

	 	 	 	 

Name:
	 	 
	 

	 	 	 	Title:	 	 

Purchase Contract Agreement

 

 

EXHIBIT A

(FORM OF FACE OF CORPORATE UNIT CERTIFICATE)

[For inclusion in Global Certificates only - THIS CERTIFICATE IS A GLOBAL CERTIFICATE WITHIN THE
MEANING OF THE PURCHASE CONTRACT AGREEMENT HEREINAFTER REFERRED TO AND IS REGISTERED IN THE NAME OF
CEDE & CO., AS NOMINEE OF THE DEPOSITORY TRUST COMPANY, A NEW YORK CORPORATION (THE
“DEPOSITARY”), THE DEPOSITARY OR ANOTHER NOMINEE OF THE DEPOSITARY.  THIS CERTIFICATE IS
EXCHANGEABLE FOR CERTIFICATES REGISTERED IN THE NAME OF A PERSON OTHER THAN THE DEPOSITARY OR ITS
NOMINEE ONLY IN THE LIMITED CIRCUMSTANCES DESCRIBED IN THE PURCHASE CONTRACT AGREEMENT AND NO
TRANSFER OF THIS CERTIFICATE (OTHER THAN A TRANSFER OF THIS CERTIFICATE AS A WHOLE BY THE
DEPOSITARY TO A NOMINEE OF THE DEPOSITARY OR BY A NOMINEE OF THE DEPOSITARY TO THE DEPOSITARY OR
ANOTHER NOMINEE OF THE DEPOSITARY) MAY BE REGISTERED EXCEPT IN LIMITED CIRCUMSTANCES.

UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITARY FOR
REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY CERTIFICATE ISSUED IS REGISTERED IN THE NAME
OF CEDE & CO. OR SUCH OTHER NAME AS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITARY
(AND ANY PAYMENT HEREON IS MADE TO CEDE & CO. OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN
AUTHORIZED REPRESENTATIVE OF THE DEPOSITARY), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR
OTHERWISE BY OR TO ANY PERSON IS WRONGFUL SINCE THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN
INTEREST HEREIN.]

	 	 	 
	No.                     

	 	Number of Corporate Units:
	 
	 	 
	CUSIP No. [   ]

	 	Initial Stated Amount:
	ISIN No. [   ]
	 	 

American International Group, Inc. 

Corporate Units

     This
Corporate Unit Certificate certifies that             is the registered Holder of
the number of Corporate Units set forth above [For inclusion in Global Certificates only – or such
other number of Corporate Units reflected in the Schedule of Increases or Decreases in Global
Certificate attached hereto]. The “Stated Amount” of each Corporate Unit evidenced hereby shall
(i) from and including May 16, 2008 to but excluding the First Stock Purchase Date, be $75.00,
(ii) from and including the First Stock Purchase Date to but excluding the Second Stock Purchase
Date, be $50.00 and (iii) from and including the Second Stock Purchase Date to but excluding the
Third Stock Purchase Date, be $25.00. Each Equity Unit consists of (a) (i) at all times prior to
the First Stock Purchase Date or, if earlier, the First Remarketing Settlement Date, a 1/40
undivided beneficial interest in a Series B-1 Debenture with a Principal Amount of $1,000, (ii) at
all times prior to the Second Stock Purchase Date or, if earlier, the Second Remarketing Settlement
Date, a 1/40 undivided beneficial interest in a Series B-2 Debenture with a Principal Amount of
$1,000, (iii) at all times prior to the Third Stock Purchase Date or, if earlier, the Third
Remarketing Settlement Date, a 1/40 undivided beneficial interest in a Series B-3 Debenture with a
Principal Amount of $1,000, and (iv) after the Remarketing Settlement Date for any Series of
Debentures and prior to the applicable Stock Purchase Date, an undivided beneficial ownership
interest in the

 

 

Treasury Portfolio purchased with the net proceeds of the Remarketing, in each case subject to
the Pledge thereof, and (b) the related Stock Purchase Contract with American International Group,
Inc. (the “Company”, which term includes a successor person under the Purchase Contract Agreement
hereinafter referred to). This Corporate Unit Certificate is issued pursuant to, and benefits from,
all of the provisions of the Purchase Contract Agreement (as defined on the reverse hereof) and
each capitalized term used herein that is defined in the Purchase Contract Agreement has the
meaning set forth therein. Pursuant to the Pledge Agreement, the interests described in clause (a)
above constituting part of the Corporate Units evidenced hereby have been pledged to the Collateral
Agent, for the benefit of the Company, to secure the obligations of the Holder under the Stock
Purchase Contract comprising part of such Corporate Units.

     Interest payments on the Debentures forming part of the Corporate Units evidenced hereby,
which are payable quarterly in arrears on February 1, May 1, August 1, and November 1 of each year,
commencing August 1, 2008 (each, an “Interest Payment Date”), shall, subject to deferral as
provided in the Supplemental Indentures, and to receipt thereof by the Purchase Contract Agent from
the Paying Agent or the Securities Intermediary, be paid to the Person in whose name this Corporate
Unit Certificate (or a Predecessor Corporate Unit Certificate) is registered at the close of
business on the Record Date for such Payment Date.

     Each Stock Purchase Contract evidenced hereby obligates the Holder of this Corporate Unit
Certificate to purchase, and the Company to sell, on each of three Stock Purchase Dates, at a price
equal to $25.00 (the “Purchase Price”), a number of newly issued or treasury shares of common
stock, par value $2.50 per share (“Common Stock”), of the Company, per Corporate Unit equal to the
applicable Settlement Rate, unless on or prior to the applicable Stock Purchase Date there shall
have occurred a Termination Event or an Early Settlement or Cash Merger Early Settlement with
respect to such Stock Purchase Contract, all as provided in the Purchase Contract Agreement and
more fully described on the reverse hereof. The Purchase Price for the shares of Common Stock
purchased pursuant to each Stock Purchase Contract evidenced hereby, if not paid earlier, shall be
paid on the applicable Stock Purchase Date (i) by application of payment received in respect of the
Pledged Treasury Portfolio purchased with respect to any Pledged Debentures of the applicable
series sold in the applicable Remarketing (or in respect of the Principal Amount of such Pledged
Debentures in the event of a Failed Remarketing with respect thereto), which Pledged Treasury
Portfolio and Pledged Debentures, as the case may be, are pledged to secure the obligations under
such Stock Purchase Contract of the Holder of the Corporate Units of which such Stock Purchase
Contract is a part, or (ii) in immediately available funds in the event the Holder elects a
Settlement with Cash or a Cash Merger Early Settlement.

     The holder of the Corporate Units evidenced hereby is deemed to have agreed (unless the United
States Internal Revenue Service requires a different treatment from such Holder), by acceptance of
such Corporate Units, to treat for all United States federal income tax purposes (i) itself as the
owner of the Stock Purchase Contracts and the related ownership interests in the Debentures pledged
under the Pledge Agreement, and (ii) the Debentures as indebtedness of the Company. In addition,
each initial purchase of a Corporate Unit for $75 shall be deemed to have agreed, for United States
federal income tax purposes, to allocate $25 to each of the undivided beneficial ownership
interests in each Debenture of each series included in each Corporate Unit and $0 to the Stock
Purchase Contract.

     The Company shall pay, on each Payment Date, in respect of each Stock Purchase Contract
forming part of a Corporate Unit evidenced hereby, an amount (the “Contract Adjustment Payments”)
equal to (i) from and including May 16, 2008 to but excluding the First Stock Purchase Date, at the
annual rate of 2.7067% on the $75 portion of the Stated Amount of a Stock Purchase Contract
corresponding to the Holder’s obligation to purchase Common Stock on the First Stock Purchase Date,

Form of Corporate Unit

A-2 

 

(ii) from and including the First Stock Purchase Date to but excluding the Second Stock
Purchase Date, at the annual rate of 2.6450% on the $50 portion of the Stated Amount of a Stock
Purchase Contract corresponding to the Holder’s obligation to purchase Common Stock on the Second
Stock Purchase Date, (iii) the stated interest on the Debentures as ordinary interest income that
is includible in the holder’s or beneficial owner’s gross income at the time the interest is paid
or accrued in accordance with the holder’s or beneficial owner’s regular method of tax accounting
and (iv) from and including the Second Stock Purchase Date to but excluding the Third Stock
Purchase Date, at the annual rate of 2.61% on the $25 portion of the Stated Amount of a Stock
Purchase Contract corresponding to the Holder’s obligation to purchase Common Stock on the Third
Stock Purchase Date, subject to its rights provided for in the Purchase Contract Agreement to defer
Contract Adjustment Payments. Such Contract Adjustment Payments shall be payable to the Person in
whose name this Corporate Unit Certificate (or a Predecessor Corporate Unit Certificate) is
registered at the close of business on the Record Date for such Payment Date.

     Contract payments and distributions due on any Payment Date that is not a Business Day shall
be made on the next succeeding day that is a Business Day (and without any interest in respect of
such delay). Payments of Interest on the Debentures and the Contract Adjustment Payments (net of
any withholding tax to be withheld by the Company on such payments, which shall be remitted to the
appropriate taxing jurisdiction) will be payable, at the option of the Company, at the office of
the Purchase Contract Agent in New York City, at the Company’s option, or by check mailed to the
address of the Person entitled thereto at such Person’s address as it appears on the Security
Register, or, at the option of the Company, by wire transfer to the account designated by such
Person by a prior written notice to the Purchase Contract Agent.

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

     Unless the certificate of authentication hereon has been executed by the Purchase Contract
Agent by manual signature, this Corporate Unit Certificate shall not be entitled to any benefit
under the Pledge Agreement or the Purchase Contract Agreement or be valid or obligatory for any
purpose.

     IN WITNESS WHEREOF, the Company and the Holder specified above have caused this instrument to
be duly executed.

	 	 	 	 	 	 	 
	 	 	American International Group, Inc.
	 
	 	 	 	 	 	 
	 

	 	By	 	 	 	 
	 

	 	 	 	 

Name:
	 	 
	 

	 	 	 	Title:	 	 

	 	 	 	 	 	 	 	 	 
	 	 	Holder Specified Above (as to	 	 
	 	 	obligations of such Holder under the Stock	 	 
	 	 	Purchase Contracts and the Pledge Agreement)	 	 
	 	 	By	 	The Bank of New York,

as attorney-in-fact of such Holder	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	By	 	 	 	 
	 

	 	 	 	 	 

Name:
	 	 
	 

	 	 	 	 	Title:	 	 

Date:                                         

Form of Corporate Unit

A-3 

 

CERTIFICATE OF AUTHENTICATION

OF PURCHASE CONTRACT AGENT

     This is one of the Corporate Unit Certificates referred to in the within mentioned Purchase
Contract Agreement.

	 	 	 	 	 	 	 
	 	 	The Bank of New York,
	 	 	as Purchase Contract Agent
	 
	 
	 	 	By 		 	 
	 

	 	 
	 	 

Name:
	 	 
	 

	 	 	 	Title:	 	 

Form of Corporate Unit

A-4 

 

(FORM OF REVERSE OF CORPORATE UNIT CERTIFICATE)

     Each Stock Purchase Contract evidenced hereby is issued pursuant to and governed by all of the
provisions of a Purchase Contract Agreement, dated as of May 16, 2008 (as may be supplemented from
time to time, the “Purchase Contract Agreement”), between the Company and The Bank of New York, as
Purchase Contract Agent (including its successors hereunder, the “Purchase Contract Agent”), to
which Purchase Contract Agreement and supplemental agreements thereto reference is hereby made for
a description of the respective rights, limitations of rights, obligations, duties and immunities
thereunder of the Purchase Contract Agent, the Company, and the Holders and of the terms upon which
the Corporate Unit Certificates are, and are to be, executed and delivered.

     Each Stock Purchase Contract evidenced hereby obligates the Holder of this Corporate Unit
Certificate to purchase, and the Company to sell, on each of three Stock Purchases Dates at a price
equal to $25.00 (the “Purchase Price”), a number of newly issued or treasury shares of Common Stock
per Corporate Unit equal to the applicable Settlement Rate, unless an Early Settlement or a Cash
Merger Early Settlement with respect to the Corporate Units of which such Stock Purchase Contract
is a part or a Termination Event shall have occurred. The Settlement Rate may be adjusted as
provided in the Purchase Contract Agreement. The Stock Purchase Dates are February 15, 2011, May
1, 2011 and August 1, 2011, or if any such date is not a Business Day, the next Business Day. No
fractional shares of Common Stock will be issued upon settlement of Stock Purchase Contracts.

     Each Stock Purchase Contract evidenced hereby, which is settled through Early Settlement or
Cash Merger Early Settlement, shall obligate the Holder of the related Corporate Unit to purchase
at the Early Settlement Amount or the purchase price specified in Section 5.04(b)(ii) of the Stock
Purchase Contract Agreement, respectively, and the Company to sell, a number of newly issued or
treasury shares of Common Stock equal to the Early Settlement Rate (in the case of an Early
Settlement) or the consideration specified in Section 5.04(b)(ii) (in the case of a Cash Merger
Early Settlement).

     In accordance with the terms of the Purchase Contract Agreement, the Holder of this Corporate
Unit Certificate shall pay the Purchase Price for the shares of Common Stock purchased pursuant to
each Stock Purchase Contract evidenced hereby by effecting a Settlement with Cash, an Early
Settlement or, if applicable, a Cash Merger Early Settlement or from the proceeds of a Remarketing
of the related Pledged Debentures. If a Holder of Corporate Units does not, on or prior to 5:00
p.m. (New York City time) on the second Business Day immediately preceding the applicable Stock
Purchase Date, notify the Purchase Contract Agent of its intention to effect a Settlement with
Cash, or does so notify the Purchase Contract Agent but fails to make an effective Settlement with
Cash on or prior to 5:00 p.m. (New York City time) on the Business Day immediately preceding the
applicable Stock Purchase Date, such notice of Settlement with Cash shall automatically be deemed
withdrawn and without effect.

     Upon the occurrence of a Failed Remarketing with respect to the Debentures of any series that
constitute part of Corporate Units, the Collateral Agent, for the benefit of the Company, will
exercise its rights as a secured party with respect to the Pledged Debentures of such series
underlying the Corporate Units, and may, to the extent permitted by law, among other things, (A)
deliver such Debentures to the Company in full satisfaction of the Holders’ obligations under the
Stock Purchase Contracts on the applicable Stock Purchase Date (but not any Additional Debentures
issued to pay Deferred Interest or accrued interest on such Debentures) or (B) sell such Debentures
in one or more public or private sales or otherwise and apply the proceeds from the sale of such
Debentures to satisfy in full the Holders’ obligations under the Stock Purchase Contracts and remit
the excess, if any, of the proceeds over the

Form of Corporate Unit

A-5

 

Purchase Price payable on such Stock Purchase Date to the Purchase Contract Agent for payment
to the Holders of the Corporate Units to which such Debentures relate.

     The Company shall not be obligated to issue any shares of Common Stock in respect of a Stock
Purchase Contract on any Stock Purchase Date, Early Settlement Date or Cash Merger Early Settlement
Date or deliver any certificates therefor to the Holder unless it shall have received the payment
required under, and in the manner set forth in, the Purchase Contract Agreement.

     Under the terms of the Pledge Agreement and the Purchase Contract Agreement, the Purchase
Contract Agent will be entitled to exercise the voting and any other consensual rights pertaining
to the Pledged Debentures or any part thereof for any purpose not inconsistent with terms of the
Pledge Agreement and Purchase Contract Agreement. The Purchase Contract Agent shall not exercise or
shall not refrain from exercising such right, as the case may be, if, in the judgment of the
Company, such action would impair or otherwise have a material adverse effect on the value of all
or any of the Pledged Debentures. The Purchase Contract Agent shall give the Company and the
Collateral Agent at least five Business Days’ prior written notice of the manner in which it
intends to exercise, or its reasons for refraining from exercising, any such right. The Holders of
Corporate Units shall have no voting or other rights in respect of Common Stock.

     In the event of a Successful Remarketing of a series of Debentures, the Collateral Agent
shall, in accordance with the Pledge Agreement, instruct the Securities Intermediary to transfer
the Pledged Debentures of such series to the Remarketing Agent, upon confirmation of deposit by the
Remarketing Agent of the Proceeds of such Successful Remarketing (less, to the extent permitted by
the Remarketing Agreement, the Remarketing Agent’s Fee) in the Collateral Account and the
Collateral Agent shall thereupon instruct the Securities Intermediary to purchase the Treasury
Portfolio with the Proceeds of the Successful Remarketing. A Holder of Corporate Units shall be
deemed to have elected to pay for the shares of Common Stock to be issued under the Stock Purchase
Contract underlying the Corporate Units from the Proceeds of the related Treasury Portfolio after a
Successful Remarketing. Without receiving any instruction from any Holder, the Collateral Agent
shall instruct the Securities Intermediary to remit the Proceeds of the related Treasury Portfolio
equal to the Purchase Price of the shares of Common Stock to be delivered on the applicable Stock
Purchase Date to the Company to satisfy in full such Holder’s obligations to pay the Purchase Price
to purchase shares of Common Stock under the related Stock Purchase Contracts on such Stock
Purchase Date and to remit the balance of the Proceeds from the related Treasury Portfolio, if any,
to the Purchase Contract Agent for distribution to such Holder.

     The Corporate Units are issuable only in registered form and only in the Stated Amount of a
single Corporate Unit and any integral multiple thereof. The transfer of any Corporate Unit
Certificate will be registered and Corporate Unit Certificates may be exchanged as provided in the
Purchase Contract Agreement. The Security Registrar may require a Holder, among other things, to
furnish appropriate endorsements and transfer documents permitted by the Purchase Contract
Agreement. No service charge shall be required for any such registration of transfer or exchange,
but the Company and the Purchase Contract Agent may require payment of a sum sufficient to cover
any tax or other governmental charge payable in connection therewith. A Holder who elects to
substitute interests in the applicable Qualifying Treasury Securities for interests in the
applicable Debentures, thereby creating Treasury Units, shall be responsible for any fees or
expenses payable in connection therewith. Except as provided in the Purchase Contract Agreement,
for so long as the Stock Purchase Contract underlying a Corporate Unit remains in effect, such
Corporate Unit shall not be separable into its constituent parts, and the rights and obligations of
the Holder of such Corporate Unit in respect of the Debentures and Stock Purchase Contract
constituting such Corporate Unit may be transferred and exchanged only as an Corporate Units.

Form of Corporate Unit

A-6

 

     Subject to the conditions set forth in the Purchase Contract Agreement, a Holder may, at any
time (other than during a Blackout Period) effect a Collateral Substitution and separate the
Pledged Debentures from the related Stock Purchase Contracts in respect of all or a portion of such
Holder’s Corporate Units by substituting interests in the applicable Qualifying Treasury
Securities, or portions thereof, for such Pledged Debentures; provided that Holders may make
Collateral Substitutions only in integral multiples of 40 Corporate Units.

     The Company shall have the right, at any time prior to August 1, 2011, to defer the payment of
any or all of the Contract Adjustment Payments otherwise payable on any Payment Date. Any Contract
Adjustment Payments so deferred shall, to the extent permitted by law, accrue additional Contract
Adjustment Payments thereon at the rate of 5.67% per year (computed on the basis of a 360-day year
of twelve 30-day months), compounding on each succeeding Payment Date, until paid in full (such
deferred installments of Contract Adjustment Payments, if any, together with the additional
Contract Adjustment Payments, if any, accrued thereon, being referred to herein as the “Deferred
Contract Adjustment Payments”). Deferred Contract Adjustment Payments, if any, shall be due on the
next succeeding Payment Date except to the extent that payment is deferred pursuant to the Purchase
Contract Agreement. No Contract Adjustment Payments may be deferred to a date that is after August
1, 2011 and no such deferral period may end other than on a Payment Date. If the Company elects to
defer the payment of Contract Adjustment Payments after August 1, 2011, each Holder will receive,
in lieu of a cash payment, in the sole discretion of the Company, either the number of shares of
Common Stock or the Additional Debentures described in the Purchase Contract Agreement.

     The Stock Purchase Contracts and all obligations and rights of the Company and the Holders
thereunder, including, without limitation, the rights of the Holders to receive and the obligation
of the Company to pay any Contract Adjustment Payments, including Deferred Contract Adjustment
Payments, shall immediately and automatically terminate, without the necessity of any notice or
action by any Holder, the Purchase Contract Agent or the Company, if, on or prior to the Third
Stock Purchase Date, a Termination Event shall have occurred. Upon and after the occurrence of a
Termination Event, the Collateral Agent shall release the Pledged Debentures from the Pledge in
accordance with the provisions of the Pledge Agreement. A Corporate Unit shall thereafter represent
the right to receive the Debentures forming a part of such Corporate Unit (or if any series of
Debentures has been sold in a Successful Remarketing and the applicable Stock Purchase Date has not
yet occurred, an interest in the Treasury Portfolio purchased with the proceeds of such Debentures)
in accordance with the terms of, and except as set forth in, the Purchase Contract Agreement and
the Pledge Agreement.

     Upon registration of transfer of this Corporate Unit Certificate, the transferee shall be
bound (without the necessity of any other action on the part of such transferee, except as may be
required by the Purchase Contract Agent pursuant to the Purchase Contract Agreement) by all the
terms and provisions of, and all the duties, responsibilities and obligations under, the Purchase
Contract Agreement and the Stock Purchase Contracts evidenced hereby, and the transferor shall be
released from the obligations under the Stock Purchase Contracts evidenced by this Corporate Unit
Certificate. The Company covenants and agrees, and the Holder, by its acceptance hereof, likewise
covenants and agrees, to be bound by the provisions of this paragraph.

     The Holder of this Corporate Unit Certificate, by its acceptance hereof, irrevocably
authorizes the Purchase Contract Agent to enter into and perform the related Stock Purchase
Contracts forming part of the Corporate Units evidenced hereby on its behalf as its
attorney-in-fact, expressly withholds any consent to the assumption (i.e., affirmance) of the Stock
Purchase Contracts by the Company or its trustee in the event that the Company becomes the subject
of a case under the Bankruptcy Code, agrees to be

Form of Corporate Unit

A-7

 

bound by the terms and provisions thereof, covenants and agrees to perform its obligations
under such Stock Purchase Contracts, consents to the provisions of the Purchase Contract Agreement,
irrevocably authorizes the Purchase Contract Agent to enter into and perform the Purchase Contract
Agreement and the Pledge Agreement on its behalf as its attorney-in-fact, and consents to, and
agrees to be bound by, the Pledge of such Holder’s right, title and interest in and to the
Collateral Account, including the Debentures underlying this Corporate Unit Certificate pursuant to
the Pledge Agreement. The Holder further covenants and agrees that, to the extent and in the
manner provided in the Purchase Contract Agreement and the Pledge Agreement, but subject to the
terms thereof, payments with respect to the aggregate principal amount of the Pledged Debentures
upon a Successful Remarketing of the applicable series on the applicable Stock Purchase Date shall
be paid by the Collateral Agent to the Company in satisfaction of such Holder’s obligations under
such Stock Purchase Contract on such Stock Purchase Date and such Holder shall acquire no right,
title or interest in such payments.

     Subject to certain exceptions, the provisions of the Purchase Contract Agreement may be
amended with the consent of the Holders of a majority in number of the Outstanding Equity Units.
The Stock Purchase Contracts and Equity Units shall for all purposes be governed by, and construed
in accordance with, the laws of the State of New York.

     Prior to due presentment of this Certificate for registration of transfer, the Company, the
Purchase Contract Agent and its Affiliates and any agent of the Company or the Purchase Contract
Agent may treat the Person in whose name this Corporate Unit Certificate is registered as the owner
of the Corporate Units evidenced hereby for the purpose of receiving distributions payable on the
Debentures, receiving Contract Adjustment Payments (subject to any applicable record date),
performance of the Stock Purchase Contracts and for all other purposes whatsoever, whether or not
any payments in respect thereof be overdue and notwithstanding any notice to the contrary, and
neither the Company, the Purchase Contract Agent nor any such Affiliate or agent shall be affected
by notice to the contrary.

     A Stock Purchase Contract shall not entitle the Holder of a Corporate Unit to any of the
rights of a holder of shares of Common Stock, prior to the delivery of shares of Common Stock under
each Stock Purchase Contract, including, without limitation, the right to vote or receive any
dividends or other payments or to consent or to receive notice as a stockholder in respect of the
meetings of stockholders or for the election of directors of the Company or for any other matter,
or any other rights whatsoever as a stockholder of the Company. A Holder will become a holder of
record of shares of Common Stock delivered pursuant to a Stock Purchase Contract at the close of
business on the date the shares of Common Stock are delivered by the Company to the Holder or, if
the Company’s stock record book is not open on that day, at the opening of business on the next
Business Day the stock record is open.

     A copy of the Purchase Contract Agreement is available for inspection at the Corporate Trust
Office.

Form of Corporate Unit

A-8

 

ABBREVIATIONS

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

	 	 	 	 	 	 	 	 	 
	TEN COM:

	 	as tenants in common	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	UNIF GIFT MIN ACT:

	 	 	 	Custodian	 	 	 	 
	 

	 	 
	 	 	 	 	 	 
	 

	 	(Cust) (Minor)	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	TEN ENT:	 	as tenants by the entireties	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	JT TEN:	 	as joint tenants with right of survivorship and not as tenants in common
	 
	 	 	 	 	 	 	 	 
	Under Uniform Gifts to Minors Act	 	 	 	 	 	 
	(State)
	 	 	 	 	 	 	 	 

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

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

 

 

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

 

 

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

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

	 	 	 	 	 	 	 	 	 
	Dated:	 	Signature	 	 	 	 
	 

	 	 	 	 	 	 

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

Form of Corporate Unit

A-9

 

ELECTION FOR EARLY SETTLEMENT/CASH MERGER EARLY SETTLEMENT

     The undersigned Holder of this Corporate Unit Certificate hereby irrevocably exercises the
option to effect {Early Settlement} {Cash Merger Early Settlement} in accordance with the terms of
the Purchase Contract Agreement with respect to the Stock Purchase Contracts underlying the number
of Corporate Units evidenced by this Corporate Unit Certificate specified below. The undersigned
Holder directs that a certificate for shares of Common Stock or other securities or property
deliverable upon such {Early Settlement} {Cash Merger Early Settlement} be registered in the name
of, and delivered, together with a check in payment for any fractional share and any Corporate Unit
Certificate representing any Corporate Units evidenced hereby as to which {Early Settlement} {Cash
Merger Early Settlement} of the related Stock Purchase Contracts is not effected, to the
undersigned at the address indicated below (or to the securities account designated in writing by
the Registered Holder) unless a different name and address have been indicated below. Pledged
Debentures deliverable upon such {Early Settlement} {Cash Merger Early Settlement} will be
transferred in accordance with the transfer instructions set forth below. If shares of Common Stock
or other securities or property are to be registered in the name of a Person other than the
undersigned, the undersigned will pay any transfer tax payable incident thereto.

	 	 	 	 	 	 	 	 	 
	Dated:

	 	 	 	Signature	 	 	 	 
	 	 	 	 	 	 	 
	Signature Guarantee:	 	 	 	 	 	 
	 	 	 

     Number of Corporate Units evidenced hereby as to which {Early Settlement} {Cash Merger Early
Settlement} of the related Stock Purchase Contracts is being elected:

	 	 	 	 	 
	If shares of Common Stock or are to be

	 	REGISTERED HOLDER:	 	 
	registered in the name of and delivered
to and Pledged Debentures are to be
transferred to a Person other than the
Holder, please print such Person’s name
and address:
	 	 	 	 
	 
	 	 	 	 
	 

	 	Please print name and address of	 	 
	 

	 	Registered Holder:	 	 
	 
	 
	 	 	 	 
	 

Name

	 	 

Name
	 	 
	 
	 	 	 	 
	 
	 

	 	 	 	 
	Address

	 	Address	 	 
	 
	 	 	 	 
	 
	 

	 	 	 	 
	 
	 
	 

	 	 	 	 
	Social Security or other Taxpayer

Identification Number, if any
	 	 	 	 

     Transfer Instructions for Pledged Debentures transferable upon {Early Settlement} {Cash Merger
Early Settlement}:

Form
of Treasury Unit

A-10

 

SETTLEMENT INSTRUCTIONS FOR [THIRD] [SECOND] [FIRST]

STOCK PURCHASE CONTRACT DATE

	 	 	 	 	 	 	 
	No.

	 	 	 	 	 	Number of Corporate Units:
	 

	 	 	 	 	 	 
	 
	 

	 	 	 	 	 	Initial Stated Amount:

American International Group, Inc. 

Corporate Units

     The undersigned Holder directs that a certificate (including in book-entry if requested by the
Holder) for shares of Common Stock deliverable upon settlement on or after the [Third] [Second]
[First] Stock Purchase Date of the Stock Purchase Contracts underlying the number of Corporate
Units issued pursuant to the Purchase Contract Agreement, dated as of May 16, 2008, between
American International Group, Inc. and The Bank of New York, as Purchase Contract Agent and
evidenced by the Corporate Unit Certificate bearing the certificate number indicated above be
registered in the name of, and delivered, together with a check in payment for any fractional
share, to the undersigned at the address indicated below (or to the securities account designated
in writing by the Registered Holder) unless a different name and address have been indicated below.
If shares are to be registered in the name of a Person other than the undersigned, the undersigned
will pay any transfer tax payable incident thereto.

	 	 	 	 	 	 	 	 	 
	Dated:

	 	 	 	Signature	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	Signature Guarantee: 	 	 	 	 
	 	 	 	 	 	 	 

	 	 	 	 	 
	If shares are to be Registered in the name

	 	REGISTERED HOLDER:	 	 
	of and delivered
to a Person other than the 

Holder, please(i) print such Person’s
name
and address: and (ii) provide a gurantee

of your signature:

	 	
Please print name and address of Registered Holder:
	 
	 	 	 	 
	 
	 	 	 	 
	 
	 	 	 	 
	 

Name

	 	 

Name
	 	 
	 
	 	 	 	 
	 

	 	 	 	 
	Address

	 	Address	 	 
	 
	 	 	 	 
	 

	 	 	 	 
	 
	 
	 	 	 	 
	 

	 	 	 	 
	 
	 
	 

	 	 	 	 
	Social Security or other Taxpayer

Identification Number, if any
	 	 	 	 

Form
of Treasury Unit

A-11

 

[TO BE ATTACHED TO GLOBAL CERTIFICATES]

SCHEDULE OF INCREASES OR DECREASES IN GLOBAL CERTIFICATE

The initial number of Corporate Units represented by this Global Certificate is 78,400,000. The
following increases or decreases in this Global Certificate have been made:

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	Number of	 	 	 	 
	 	 	 	 	Amount of	 	 	Amount of	 	 	Corporate Units	 	 	 	 
	 	 	 	 	increase in	 	 	decrease in	 	 	evidenced by this	 	 	 	 
	 	 	 	 	Number of	 	 	Number of	 	 	Global	 	 	Signature of	 
	 	 	 	 	Corporate Units	 	 	Corporate Units	 	 	Certificate	 	 	authorized	 
	 	 	 	 	evidenced by the	 	 	evidenced by the	 	 	following such	 	 	signatory of	 
	 	 	 	 	Global	 	 	Global	 	 	decrease or	 	 	Purchase	 
	Date	 	 	Certificate	 	 	Certificate	 	 	increase	 	 	Contract Agent	 

Form of Corporate Unit

A-12

 

Exhibit B

(FORM OF FACE OF TREASURY UNIT CERTIFICATE)

[For inclusion in Global Certificates only - THIS CERTIFICATE IS A GLOBAL CERTIFICATE WITHIN THE
MEANING OF THE PURCHASE CONTRACT AGREEMENT HEREINAFTER REFERRED TO AND IS REGISTERED IN THE NAME OF
CEDE & CO., AS NOMINEE OF THE DEPOSITORY TRUST COMPANY, A NEW YORK CORPORATION (THE
“DEPOSITARY”), THE DEPOSITARY OR ANOTHER NOMINEE OF THE DEPOSITARY.  THIS CERTIFICATE IS
EXCHANGEABLE FOR CERTIFICATES REGISTERED IN THE NAME OF A PERSON OTHER THAN THE DEPOSITARY OR ITS
NOMINEE ONLY IN THE LIMITED CIRCUMSTANCES DESCRIBED IN THE PURCHASE CONTRACT AGREEMENT AND NO
TRANSFER OF THIS CERTIFICATE (OTHER THAN A TRANSFER OF THIS CERTIFICATE AS A WHOLE BY THE
DEPOSITARY TO A NOMINEE OF THE DEPOSITARY OR BY A NOMINEE OF THE DEPOSITARY TO THE DEPOSITARY OR
ANOTHER NOMINEE OF THE DEPOSITARY) MAY BE REGISTERED EXCEPT IN LIMITED CIRCUMSTANCES.

UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITARY FOR
REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY CERTIFICATE ISSUED IS REGISTERED IN THE NAME
OF CEDE & CO. OR SUCH OTHER NAME AS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITARY
(AND ANY PAYMENT HEREON IS MADE TO CEDE & CO. OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN
AUTHORIZED REPRESENTATIVE OF THE DEPOSITARY), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR
OTHERWISE BY OR TO ANY PERSON IS WRONGFUL SINCE THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN
INTEREST HEREIN.]

	 	 	 	 	 	 	 
	No.

	 	 	 	 	 	Number of Treasury Units:
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	CUSIP No. 026874 123	 	 	 	 

American international group, Inc.

Treasury Units

     This Treasury Unit Certificate certifies that            is the registered Holder
of the number of Treasury Units set forth above [For inclusion in Global Certificates only – or
such other number of Treasury Units reflected in the Schedule of Increases or Decreases in Global
Certificate attached hereto]. The “Stated Amount” of each Treasury Unit evidenced hereby shall be
(i) from and including May 16, 2008 to but excluding the First Stock Purchase Date, $75.00,
(ii) from and including the First Stock Purchase Date to but excluding the Second Stock Purchase
Date, $50.00 and (iii) from and including the Second Stock Purchase Date to but excluding the Third
Stock Purchase Date, $25.00. Each Treasury Unit consists of (i) a 2.5%, undivided beneficial
ownership interest in the First Qualifying Treasury Security, subject to the Pledge of such
interest in the Treasury Security by such Holder pursuant to the Pledge Agreement, (ii) an
undivided beneficial ownership interest in the Second Qualifying Treasury Security, subject to the
Pledge of such Treasury Security by such Holder pursuant to the Pledge Agreement, (iii) a 2.5%
undivided beneficial ownership interest in the Third Qualifying Treasury Security, subject to the
Pledge of such Treasury Security by such Holder pursuant to the Pledge Agreement, and (iv) the
rights and obligations of the Holder under one Stock Purchase Contract with American International
Group, Inc., a Delaware corporation (the “Company,” which term includes any successor person under
the Purchase Contract Agreement hereafter referred to). This Treasury Unit Certificate is issued
pursuant to, and benefits from, all of the provisions of the Purchase Contract Agreement (as
defined on the reverse hereof)

 

 

and all capitalized terms used herein which are defined in the Purchase Contract Agreement
have the meaning set forth therein. Pursuant to the Pledge Agreement, the Qualifying Treasury
Securities constituting part of each Treasury Unit evidenced hereby have been pledged to the
Collateral Agent, for the benefit of the Company, to secure the obligations of the Holder under the
Stock Purchase Contract comprising part of such Treasury Unit.

     Each Stock Purchase Contract evidenced hereby obligates the Holder of this Treasury Unit
Certificate to purchase, and the Company to sell, on each of three Stock Purchase Dates, at a price
equal to $25.00 (the “Purchase Price”), a number of newly issued or treasury shares of common
stock, par value $2.50 per share (“Common Stock”), of the Company, per Treasury Unit equal to the
applicable Settlement Rate, unless on or prior to the applicable Stock Purchase Date there shall
have occurred an Early Settlement or Cash Merger Early Settlement with respect to such Stock
Purchase Contract or a Termination Event, all as provided in the Purchase Contract Agreement and
more fully described on the reverse hereof. The Purchase Price for the shares of Common Stock
purchased pursuant to each Stock Purchase Contract evidenced hereby, if not paid earlier, shall be
paid on the applicable Stock Purchase Date by application of the Proceeds from the applicable
Qualifying Treasury Securities at maturity pledged to secure the obligations under such Stock
Purchase Contract of the Holder of the Treasury Unit of which such Stock Purchase Contract is a
part.

     The holder of the Treasury Unit evidenced hereby is deemed to have agreed (unless the United
States Internal Revenue Service requires a different treatment from such Holder), by acceptance of
such Treasury Unit, to treat for all United States federal income tax purposes (i) itself as the
owner of the Stock Purchase Contracts and the related ownership interest in the Qualifying Treasury
Securities pledged under the Pledge Agreement, and (ii) as of May 16, 2008, the fair market value
of each undivided beneficial interest in the Stock Purchase Contract as $0.

     The Company shall pay, on each Payment Date, in respect of each Stock Purchase Contract
forming part of a Treasury Unit evidenced hereby, an amount (the “Contract Adjustment Payments”)
equal to (i) from and including May 16, 2008 to but excluding the First Stock Purchase Date, at the
annual rate of 2.7067% on the initial Stated Amount of $75 per Stock Purchase Contract, (ii) from
and including the First Stock Purchase Date to but excluding the Second Stock Purchase Date, at the
annual rate of 2.645% on the adjusted Stated Amount of $50 per Stock Purchase Contract, and (iii)
from and including the Second Stock Purchase Date to but excluding the Third Stock Purchase Date,
at the annual rate of 2.61% on the adjusted Stated Amount of $25 per Stock Purchase Contract,
subject to its rights provided for in the Purchase Contract Agreement to defer Contract Adjustment
Payments. Such Contract Adjustment Payments shall be payable to the Person in whose name this
Treasury Unit Certificate (or a Predecessor Treasury Unit Certificate) is registered at the close
of business on the Record Date for such Payment Date.

     Contract Adjustment Payments and distributions due on any Payment Date that is not a Business
Day shall be made on the next succeeding day that is a Business Day (and without any interest in
respect of such delay). Contract Adjustment Payments (net of any withholding tax to be withheld by
the Company on such payments, which shall be remitted to the appropriate taxing jurisdiction) will
be payable, at the option of the Company, at the office of the Purchase Contract Agent in New York
City or by check mailed to the address of the Person entitled thereto at such Person’s address as
it appears on the Security Register, or by wire transfer to the account designated by such Person
by a prior written notice to the Purchase Contract Agent.

Form of Corporate Unit

B-2

 

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

     Unless the certificate of authentication hereon has been executed by the Purchase Contract
Agent by manual signature, this Treasury Unit Certificate shall not be entitled to any benefit
under the Pledge Agreement or the Purchase Contract Agreement or be valid or obligatory for any
purpose.

     IN WITNESS WHEREOF, the Company and the Holder specified above have caused this instrument to
be duly executed.

	 	 	 	 	 	 	 	 	 	 	 
	 	 	american International Group, Inc.  
	 
	 	 	 	 	 	 	 	 	 	 
	 

	 	By	 	 	 	 	 	 	 	 
	 	 	 	 	   
	 

	 	 	 	Name:	 	 	 
	 

	 	 	 	Title:	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 	 	Holder Specified Above (as to

obligations of such Holder under the Stock
Purchase Contracts)
	 	 	By:	 	The Bank of New York,

as attorney-in-fact of such Holder
	 
	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	By	 	 	 	 	 	 
	 	 	 	 	 	 	   
	 

	 	 	 	 	 	Name:	 
	 

	 	 	 	 	 	Title:	 

Date:                                         

Form
of Treasury Unit

B-3

 

CERTIFICATE OF AUTHENTICATION OF

STOCK PURCHASE CONTRACT AGENT

     This is one of the Treasury Units referred to in the within-mentioned Purchase Contract
Agreement.

	 	 	 	 	 	 	 
	 	 	The Bank of New York,

as Purchase Contract Agent	 	 
	 
	 	 	 	 	 	 
	 

	 	By	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	Name:	 	 	 	 
	 

	 	Title:	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	Dated	 	 	 	 
	 

	 	 	 	 	 	 

Form of Corporate Unit

B-4

 

(FORM OF REVERSE OF TREASURY UNIT CERTIFICATE)

     Each Stock Purchase Contract evidenced hereby is issued pursuant to and governed by all of the
provisions (whether or not described herein) of a Purchase Contract Agreement, dated as of May 16,
2008 (as may be supplemented from time to time, the “Purchase Contract Agreement”), between the
Company and The Bank of New York, as Purchase Contract Agent (including its successors hereunder,
the “Purchase Contract Agent”), to which Purchase Contract Agreement and supplemental agreements
thereto reference is hereby made for a description of the respective rights, limitations of rights,
obligations, duties and immunities thereunder of the Purchase Contract Agent, the Company, and the
Holders and of the terms upon which the Treasury Unit Certificates are, and are to be, executed and
delivered.

     Each Stock Purchase Contract evidenced hereby obligates the Holder of this Treasury Unit
Certificate to purchase, and the Company to sell, on each of three Stock Purchase Dates at a price
equal to $25.00 (the “Purchase Price”), a number of newly issued or treasury shares of Common Stock
per Treasury Unit equal to the applicable Settlement Rate, unless an Early Settlement or a Cash
Merger Early Settlement with respect to the Treasury Unit of which such Stock Purchase Contract is
a part or a Termination Event shall have occurred. The Settlement Rate may be adjusted as provided
in the Purchase Contract Agreement. The Stock Purchase Dates are February 15, 2011, May 1, 2011
and August 1, 2011, or if any such date is not a Business Day, the next Business Day. No
fractional shares of Common Stock will be issued upon settlement of Stock Purchase Contracts.

     Each Stock Purchase Contract evidenced hereby, which is settled through Early Settlement or
Cash Merger Early Settlement, shall obligate the Holder of the related Treasury Unit to purchase at
the Purchase Price, Early Settlement Amount or the purchase price specified in Section 5.04(b)(ii)
of the Stock Purchase Contract Agreement, respectively, and the Company to sell, a number of newly
issued or treasury shares of Common Stock equal to the Early Settlement Rate (in the case of an
Early Settlement) or the consideration specified in Section 5.04(b)(ii) (in the case of a Cash
Merger Early Settlement).

     In accordance with the terms of the Purchase Contract Agreement, the Holder of this Treasury
Unit Certificate shall pay the Purchase Price for the shares of the Common Stock purchased pursuant
to each Stock Purchase Contract evidenced hereby either by effecting a Settlement with Cash, an
Early Settlement or, if applicable, a Cash Merger Early Settlement or by applying the Proceeds at
maturity of the applicable Pledged Treasury Securities underlying such Holder’s Treasury Units.

     The Company shall not be obligated to issue any shares of Common Stock in respect of a Stock
Purchase Contract on any Stock Purchase Date, Early Settlement Date or Cash Merger Early Settlement
Date or deliver any certificates therefor to the Holder unless it shall have received the payment
required under, and in the manner set forth in, the Purchase Contract Agreement.

     The Treasury Unit Certificates are issuable only in registered form and only in Stated Amounts
of a single Treasury Unit and any integral multiple thereof. The transfer of any Treasury Unit
Certificate will be registered and Treasury Unit Certificates may be exchanged as provided in the
Purchase Contract Agreement. The Security Registrar may require a Holder, among other things, to
furnish appropriate endorsements and transfer documents permitted by the Purchase Contract
Agreement. No service charge shall be required for any such registration of transfer or exchange,
but the Company and the Purchase Contract Agent may require payment of a sum sufficient to cover
any tax or other governmental charge payable in connection therewith. A Holder who elects to
substitute the applicable Debentures for Pledged

Form of Corporate Unit

B-5

 

Treasury Securities, thereby recreating Corporate Units, shall be responsible for any fees or
expenses associated therewith. Except as provided in the Purchase Contract Agreement, for so long
as the Stock Purchase Contract underlying a Treasury Unit remains in effect, such Treasury Unit
shall not be separable into its constituent parts, and the rights and obligations of the Holder of
such Treasury Unit in respect of the Pledged Treasury Security and the Stock Purchase Contract
constituting such Treasury Unit may be transferred and exchanged only as a Treasury Unit.

     Subject to the conditions set forth in the Purchase Contract Agreement, a Holder may, at any
time other than a Blackout Period, recreate Corporate Units by delivering to the Securities
Intermediary for each 40 Corporate Units to be recreated, (1) prior to the First Stock Purchase
Date, a Series B-1 Debenture with a $1,000 principal amount, (2) prior to the Second Stock Purchase
Date, a Series B-2 Debenture with a $1,000 principal amount, and (3) prior to the Third Stock
Purchase Date, a Series B-3 Debenture with a $1,000 principal amount, in exchange for the release
of the applicable Pledged Treasury Securities relating to such Corporate Units in accordance with
the terms of the Purchase Contract Agreement and the Pledge Agreement; provided that such creation
of Corporate Units may be effected only in multiples of 40 Treasury Units for 40 Corporate Units.

     The Company shall have the right, at any time prior to August 1, 2011, to defer the payment of
any or all of the Contract Adjustment Payments otherwise payable on any Payment Date. Any Contract
Adjustment Payments so deferred shall, to the extent permitted by law, accrue additional Contract
Adjustment Payments thereon at the rate of 5.67% per year (computed on the basis of a 360-day year
of twelve 30-day months), compounding on each succeeding Payment Date, until paid in full (such
deferred installments of Contract Adjustment Payments, if any, together with the additional
Contract Adjustment Payments, if any, accrued thereon, being referred to herein as the “Deferred
Contract Adjustment Payments”). Deferred Contract Adjustment Payments, if any, shall be due on the
next succeeding Payment Date except to the extent that payment is deferred pursuant to the Purchase
Contract Agreement. No Contract Adjustment Payments may be deferred to a date that is after August
1, 2011 and no such deferral period may end other than on a Payment Date. If the Company elects to
defer the payment of Contract Adjustment Payments after August 1, 2011, each Holder will receive,
in lieu of a cash payment, in the sole discretion of the Company, either the number of shares of
Common Stock or the Additional Debentures described in the Purchase Contract Agreement.

     The Stock Purchase Contracts and all obligations and rights of the Company and the Holders
thereunder, including, without limitation, the rights of the Holders to receive and the obligation
of the Company to pay any Contract Adjustment Payments, including Deferred Contract Adjustment
Payments, shall immediately and automatically terminate, without the necessity of any notice or
action by any Holder, the Purchase Contract Agent or the Company, if, on or prior to the Third
Stock Purchase Date, a Termination Event shall have occurred. Upon the occurrence of a Termination
Event, the Company shall promptly, but in no event later than two Business Days thereafter, give
written notice to the Purchase Contract Agent, the Collateral Agent and the Holders, at their
addresses as they appear in the Security Register. Upon and after the occurrence of a Termination
Event, the Collateral Agent shall release the Pledged Treasury Securities from the Pledge in
accordance with the provisions of the Pledge Agreement. A Treasury Unit shall thereafter represent
the right to receive the interest in the Qualifying Treasury Securities forming a part of such
Treasury Unit in accordance with the terms of, and except as set forth in, the Purchase Contract
Agreement and the Pledge Agreement.

     Upon registration of transfer of this Treasury Unit Certificate, the transferee shall be bound
(without the necessity of any other action on the part of such transferee, except as may be
required by the Purchase Contract Agent pursuant to the Purchase Contract Agreement), by all the
terms and provisions

Form of Corporate Unit

B-6

 

of, and all the responsibilities and obligations under, the Purchase Contract Agreement and
the Stock Purchase Contracts evidenced hereby and the transferor shall be released from the
obligations under the Stock Purchase Contracts evidenced by this Treasury Unit Certificate. The
Company covenants and agrees, and the Holder, by its acceptance hereof, likewise covenants and
agrees, to be bound by the provisions of this paragraph.

     The Holder of this Treasury Unit Certificate, by its acceptance hereof, irrevocably authorizes
the Purchase Contract Agent to enter into and perform the related Stock Purchase Contracts forming
part of the Treasury Units evidenced hereby on its behalf as its attorney-in-fact, expressly
withholds any consent to the assumption (i.e., affirmance) of the Stock Purchase Contracts by the
Company or its trustee in the event that the Company becomes the subject of a case under the
Bankruptcy Code, agrees to be bound by the terms and provisions thereof, covenants and agrees to
perform its obligations under such Stock Purchase Contracts, consents to the provisions of the
Purchase Contract Agreement, authorizes the Purchase Contract Agent to enter into and perform the
Purchase Contract Agreement and the Pledge Agreement on its behalf as its attorney-in-fact, and
consents to, and agrees to be bound by, the Pledge of such Holder’s right, title and interest in
and to the Collateral Account, including the Qualifying Treasury Securities underlying this
Treasury Unit Certificate pursuant to the Pledge Agreement. The Holder further covenants and
agrees, that, to the extent and in the manner provided in the Purchase Contract Agreement and the
Pledge Agreement, but subject to the terms thereof, on each Stock Purchase Date payments with
respect to an aggregate principal amount of the applicable Pledged Treasury Securities equal to the
Purchase Price to be paid on such Stock Purchase Date shall be paid by the Collateral Agent to the
Company in satisfaction of such Holder’s obligations under such Stock Purchase Contract on such
Stock Purchase Date and such Holder shall acquire no right, title or interest in such payments.

     Subject to certain exceptions, the provisions of the Purchase Contract Agreement may be
amended with the consent of the Holders of a majority in Stated Amount of the Outstanding Equity
Units. The Stock Purchase Contracts and Equity Units shall for all purposes be governed by, and
construed in accordance with, the laws of the State of New York.

     Prior to due presentment of this Certificate for registration or transfer, the Company, the
Purchase Contract Agent and its Affiliates and any agent of the Company or the Purchase Contract
Agent may treat the Person in whose name this Treasury Unit Certificate is registered as the owner
of the Treasury Units evidenced hereby for the purpose of receiving payments of interest on the
Qualifying Treasury Securities, receiving Contract Adjustment Payments (subject to any applicable
Record Date), performance of the Stock Purchase Contracts and for all other purposes whatsoever,
whether or not any payments in respect thereof be overdue and notwithstanding any notice to the
contrary, and neither the Company, the Purchase Contract Agent nor any such Affiliate or agent
shall be affected by notice to the contrary.

     A Stock Purchase Contract shall not entitle the Holder of a Treasury Unit to any of the rights
of a holder of shares of Common Stock, prior to the delivery of shares of Common Stock under each
Stock Purchase Contract, including, without limitation, the right to vote or receive any dividends
or other payments or to consent or to receive notice as a stockholder in respect of the meetings of
stockholders or for the election of directors of the Company or for any other matter, or any other
rights whatsoever as a stockholder of the Company. A Holder will become a holder of record of
shares of Common Stock delivered pursuant to a Stock Purchase Contract at the close of business on
the date the shares of Common Stock are delivered by the Company to the Holder or, if the Company’s
stock record book is not open on that day, at the opening of business on the next Business Day the
stock record is open.

Form of Corporate Unit

B-7

 

     A copy of the Purchase Contract Agreement is available for inspection at the Corporate Trust
Office.

Form of Corporate Unit

B-8

 

ABBREVIATIONS

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

	 	 	 
	TEN COM:

	 	as tenants in common
	 
	 	 
	UNIF GIFT MIN ACT:

             

	 	                    Custodian                    

(Cust) (Minor)
	 
	 	 
	TEN ENT:

	 	as tenants by the entireties
	 
	 	 
	JT TEN:

	 	as joint tenants with right of survivorship and not as tenants in common

Under Uniform Gifts to Minors Act

(State)

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

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

 

 

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

 

 

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

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

	 	 	 
	Dated:

	 	Signature                    
	 
	 	 
	 

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

Signature Guarantee:____________________________________________________________________________________

Form of Treasury Unit

B-9

 

ELECTION TO SETTLE EARLY/CASH MERGER EARLY SETTLEMENT

     The undersigned Holder of this Treasury Unit Certificate hereby irrevocably exercises the
option to effect {Early Settlement} {Cash Merger Early Settlement upon a Cash Merger} in accordance
with the terms of the Purchase Contract Agreement with respect to the Stock Purchase Contracts
underlying the number of Treasury Units evidenced by this Treasury Unit Certificate specified
below. The undersigned Holder directs that a certificate for shares of Common Stock or other
securities or property deliverable upon such {Early Settlement} {Cash Merger Early Settlement} be
registered in the name of, and delivered, together with a check in payment for any fractional share
and any Treasury Unit Certificate representing any Treasury Units evidenced hereby as to which
{Early Settlement} {Cash Merger Early Settlement} of the related Stock Purchase Contracts is not
effected, to the undersigned at the address indicated below (or to the securities account
designated in writing by the Registered Holder) unless a different name and address have been
indicated below. Pledged Treasury Securities deliverable upon such {Early Settlement} {Cash Merger
Early Settlement} will be transferred in accordance with the transfer instructions set forth below.
If shares are to be registered in the name of a Person other than the undersigned, the undersigned
will pay any transfer tax payable incident thereto.

	 	 	 	 	 	 	 
	Dated:

	 	Signature	 	 	 	 
	 

	 	 	 	 

	 	 

Signature Guarantee:_________________________________________________________________________________

     Number of Treasury Units evidenced hereby as to which {Early Settlement} {Cash Merger Early
Settlement} of the related Stock Purchase Contracts is being elected:

	 	 	 
	If shares of Common Stock are to be
registered in the name of and
delivered to and Pledged Treasury
Securities are to be transferred to
a Person other than the Holder,
please print such Person’s name and
address:

	 	REGISTERED HOLDER:
	 
	 	 
	 

	 	 
	 

	 	Please print name and address of
Registered Holder:
	 
	 	 
	 

	 	 
	Name

	 	Name
	 
	 	 
	 

	 	 
	Address

	 	Address
	 
	 	 
	 

	 	 
	 
	 	 
	 
	 

	 	 
	 
	 	 
	 
	 

	 	 

Social Security or other Taxpayer

Identification Number, if any

Form of Treasury Unit

B-10

 

     Transfer Instructions for Pledged Treasury Securities transferable upon {Early Settlement}
{Cash Merger Early Settlement}:

Form of Treasury Unit

B-11

 

SETTLEMENT INSTRUCTIONS FOR [THIRD] [SECOND] [FIRST] STOCK PURCHASE

CONTRACT DATE

	 	 	 
	No.                     

	 	Number of Treasury Units:
	 
	 	 
	 

	 	Initial Stated Amount:

American International Group, Inc. 

Treasury Units

     The undersigned Holder directs that a certificate (including in book-entry if requested by the
Holder) for shares of Common Stock deliverable upon settlement on or after the [Third] [Second]
[First] Stock Purchase Date of the Stock Purchase Contracts underlying the number of Treasury Units
issued pursuant to the Purchase Contract Agreement, dated as of May 16, 2008, between American
International Group, Inc. and The Bank of New York, as Purchase Contract Agent and evidenced by the
Treasury Unit Certificate bearing the certificate number indicated above be registered in the name
of, and delivered, together with a check in payment for any fractional share, to the undersigned at
the address indicated below (or to the securities account designated in writing by the Registered
Holder) unless a different name and address have been indicated below. If shares are to be
registered in the name of a Person other than the undersigned, the undersigned will pay any
transfer tax payable incident thereto.

	 	 	 	 	 	 	 
	Dated:

	 	Signature	 	 	 	 
	 	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	Signature Guarantee:	 
	 

	 	 	 	 	 	 

	 	 	 
	If shares are to be registered
in the name of and delivered to
a Person other than the Holder,
please (i) print such Person’s
name and address and
(ii) provide a guarantee of your
signature:

	 	Registered Holder:

Please print name and address of Registered Holder:
	 
	 	 
	 

	 	 
	Name

	 	Name
	 
	 	 
	 

	 	 
	Address

	 	Address
	 
	 	 
	 

	 	 
	 
	 	 
	 
	 

	 	 
	 
	 
	 	 
	 

	 	 

Social Security or other Taxpayer

Identification Number, if any

Form of Treasury Unit

B-12

 

[TO BE ATTACHED TO GLOBAL CERTIFICATES]

SCHEDULE OF INCREASES OR DECREASES IN GLOBAL CERTIFICATE

The initial number of Treasury Units represented by this Global Certificate is 0. The following
increases or decreases in this Global Certificate have been made:

	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	Number of	 	 
	 	 	Amount of	 	Amount of	 	Treasury Units	 	 
	 	 	increase in	 	decrease in	 	evidenced by this	 	 
	 	 	Number of	 	Number of	 	Global	 	Signature of
	 	 	Treasury Units	 	Treasury Units	 	Certificate	 	authorized
	 	 	evidenced by the	 	evidenced by the	 	following such	 	signatory of
	 	 	Global	 	Global	 	decrease or	 	Purchase
	Date	 	Certificate	 	Certificate	 	increase	 	Contract Agent
	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 

Form of Treasury Unit

B-13

 

EXHIBIT C

INSTRUCTION TO PURCHASE CONTRACT AGENT

The Bank of New York,

as Purchase Contract Agent

Attention: Corporate Finance Group

101 Barclay Street-8W

New York, New York 10286

	 	 	 	 	 
	 

	 	Re:
	 	{Corporate Units} {Treasury Units} of
	 

	 	 	 	American International Group, Inc., a Delaware corporation (the “Company”)

     The undersigned Holder hereby notifies you that it has delivered to The Bank of New York, as
Securities Intermediary, for credit to the Collateral Account,
$          aggregate {principal amount of each applicable series of
Debentures} {principal amount of the applicable Qualifying Treasury Securities} in exchange for the
corresponding aggregate {principal amount of Pledged Debentures} {principal amount of Pledged
Treasury Securities} held in the Collateral Account, in accordance with the Pledge Agreement, dated
as of May 16, 2008 (the “Pledge Agreement”; unless otherwise defined herein, terms defined in the
Pledge Agreement are used herein as defined therein), between you, the Company, the Collateral
Agent, the Custodial Agent and the Securities Intermediary. The undersigned Holder has paid all
applicable fees and expenses relating to such exchange. The undersigned Holder hereby instructs you
to instruct the Collateral Agent to release to you on behalf of the undersigned Holder the {Pledged
Debentures} {Pledged Treasury Securities} related to such {Corporate Units} {Treasury Units}.

	 	 	 
	Dated:
	 	 
	 

	 	 
	 

	 	Signature Guarantee:
	Please print name and address of
Registered Holder:
	 	 
	 

	 	 
	 
	 	 
	 

	 	 
	Name

	 	Social Security or other Taxpayer Identification Number, if any
	Address
	 	 
	 
	 	 
	 

	 	 
	 

	 	 
	 

	 	 

Form of Instruction to 

Purchase Contract Agent

C-1

 

EXHIBIT D

NOTICE FROM STOCK PURCHASE CONTRACT AGENT

TO HOLDERS

     (Transfer of Collateral upon Occurrence of a Termination Event)

{HOLDER}

	 	 	 
	 

	 	 
	 
	 
	 

	 	 
	Attention:
	 	 
	Telecopy:
 
	 	 

	 	 	 	 	 
	 

	 	Re:
	 	{Corporate Units} {Treasury Units} of
	 

	 	 	 	American International Group, Inc., a Delaware corporation (the “Company”)

     Please refer to the Purchase Contract Agreement, dated as of May 16, 2008 (the “Purchase
Contract Agreement”; unless otherwise defined herein, terms defined in the Purchase Contract
Agreement are used herein as defined therein), between the Company and the undersigned, as Purchase
Contract Agent and as attorney-in-fact for the holders of Corporate Units and Treasury Units from
time to time.

     We hereby notify you we have received notice that a Termination Event has occurred and that
{the Debentures} {the Qualifying Treasury Securities} comprising a portion of your ownership
interest in                                    {Corporate Units} {Treasury Units} have been
released and are being held by us for your account pending receipt of transfer instructions with
respect to such {Debentures} {Qualifying Treasury Securities} (the “Released Securities”).

     Pursuant to Section 3.15 of the Purchase Contract Agreement, we hereby request written
transfer instructions with respect to the Released Securities. Upon receipt of your instructions
and upon transfer to us of your {Corporate Units}{Treasury Units} effected through book-entry or by
delivery to us of your {Corporate Unit Certificate}{Treasury Unit Certificate}, we shall transfer
the Released Securities by book-entry transfer or other appropriate procedures, in accordance with
your instructions.

     In the event you fail to effect such transfer or delivery, the Released Securities and any
distributions thereon, shall be held in our name, or a nominee in trust for your benefit, until
such time as such {Corporate Units}{Treasury Units} are transferred or your {Corporate Unit
Certificate} {Treasury Unit Certificate} is surrendered or satisfactory evidence is provided that
such {Corporate Unit Certificate}{Treasury Unit Certificate} has been mutilated, destroyed, lost or
stolen, together with any indemnification that we or the Company may require.

	 	 	 
	Dated:

	 	The Bank of New York
	 
	 	 
	 

	 	 
	 

	 	By: Name:
	 

	 	Title: Authorized Signatory

Form of Notice of Termination Event

D-1

 

EXHIBIT E

NOTICE TO SETTLE WITH CASH

The Bank of New York

as Purchase Contract Agent

Attention: Corporate Finance Group

101 Barclay Street-8W

New York, New York 10286

	 	 	 	 	 
	 

	 	Re:
	 	Equity Units of American International Group, Inc.,
	 

	 	 	 	a Delaware corporation (the “Company”)

     The undersigned Holder hereby irrevocably notifies you in accordance with Section 5.02 of the
Purchase Contract Agreement, dated as of May 16, 2008 (the “Purchase Contract Agreement”; unless
otherwise defined herein, terms defined in the Purchase Contract Agreement are used herein as
defined therein), between the Company and you, as Purchase Contract Agent and as attorney-in-fact
for the Holders of the Stock Purchase Contracts, that such Holder has elected to deliver $1,000 in
immediately available funds for each 40 Equity Units evidenced by the Certificate accompanying this
notice to the Securities Intermediary for deposit in the Collateral Account, at or prior to 11:00
a.m. (New York City time) on the Business Day immediately preceding the applicable Stock Purchase
Date. The $1,000 in immediately available funds so deposited shall be delivered to the Company on
the applicable Stock Purchase Date in settlement of the obligations of the Holder under Stock
Purchase Contracts on such Stock Purchase Date in accordance with the terms of the Purchase
Contract Agreement and the Pledge Agreement.

     The undersigned Holder hereby instructs you to notify promptly the Collateral Agent of the
undersigned Holders’ election to make such Settlement with Cash with respect to the Stock Purchase
Contracts related to such Holder’s Corporate Units on the applicable Stock Purchase Date.

Dated:

	 	 	 
	 

	 	 
	 

	 	Signature
	 
	 
	 	 
	 

	 	 
	 

	 	Signature Guarantee

Form of Notice to 

Settle with cash

E-1

 

EXHIBIT F

NOTICE FROM STOCK PURCHASE CONTRACT AGENT

TO COLLATERAL AGENT

(Settlement of Stock Purchase Contract through Remarketing)

Wilmington Trust Company,

as Collateral Agent

Rodney Square North

1100 North Market Street

Wilmington, Delaware 19890

Attention: Corporate Trust Administration

Telephone: (302) 636-6453

Facsimile: (302) 636-4140

	 	 	 	 	 
	 

	 	Re:
	 	Corporate Units of American International Group, Inc.,
	 

	 	 	 	a Delaware corporation (the “Company”)

     Please refer to the Purchase Contract Agreement, dated as of May 16, 2008 (the “Purchase
Contract Agreement”; unless otherwise defined herein, terms defined in the Purchase Contract
Agreement are used herein as defined therein), between the Company and the undersigned, as Purchase
Contract Agent and as attorney-in-fact for the Holders of Corporate Units from time to time.

     In accordance with Section 5.02 of the Purchase Contract Agreement and, based on notices of
Settlements with Cash received from Holders of Corporate Units as of 11:00 a.m. (New York City
time), on the second Business Day immediately preceding the applicable Stock Purchase Date, we
hereby notify you that Series {B-1}{B-2}{B-3} Debentures in an aggregate principal amount of
$                  are to be tendered for purchase in the Remarketing commencing on applicable
Remarketing Period Start Date.

	 	 	 
	Dated:

	 	The Bank of New York,
	 

	 	as the Purchase Contract Agent
	 
	 	 
	 

	 	 
	 

	 	By: Name:
	 

	 	     Title:

Form of Notice to Collateral Agent

F-1EX-4.3

Exhibit 4.3

FORM OF

INDENTURE

BETWEEN

DUSA PHARMACEUTICALS, INC.

AND 

_______________________________,

AS TRUSTEE

DATED AS OF                     , 20___

SENIOR DEBT SECURITIES

(Issuable in Series)

 - i - 

 

 

TABLE OF CONTENTS

	 
	ARTICLE 1

	 

	DEFINITIONS AND OTHER PROVISIONS OF GENERAL APPLICATION

	 

	Section 1.1 Definitions

	Section 1.2 Incorporation by Reference of Trust Indenture Act

	Section 1.3 Compliance Certificates and Opinions

	Section 1.4 Form of Documents Delivered to Trustee

	Section 1.5 Acts of Holders; Record Dates

	Section 1.6 Notices, etc., to Trustee and Company

	Section 1.7 Notice to Holders; Waiver

	Section 1.8 Conflict with Trust Indenture Act

	Section 1.9 Effect of Headings and Table of Contents

	Section 1.10 Successors and Assigns

	Section 1.11 Separability Clause

	Section 1.12 Benefits of Indenture

	Section 1.13 Governing Law

	Section 1.14 Legal Holidays

	Section 1.15 Indenture and Securities Solely Corporate Obligations

	Section 1.16 Indenture May be Executed in Counterparts

	 

	ARTICLE 2

	 

	SECURITY FORMS

	 

	Section 2.1 Forms Generally

	Section 2.2 Form of Trustee’s Certificate of Authentication

	Section 2.3 Global Securities

	Section 2.4 Form of Legend for Global Securities

	Section 2.5 Form of Face of Security

	Section 2.6 Form of Reverse of Security

	 

	ARTICLE 3

	 

	THE SECURITIES

	 

	Section 3.1 Amount Unlimited; Issuable in Series

	Section 3.2 Denominations

	Section 3.3 Execution, Authentication, Delivery and Dating

	Section 3.4 Temporary Securities

	Section 3.5 Registration; Registration of Transfer and Exchange

	Section 3.6 Mutilated, Destroyed, Lost and Stolen Securities

	Section 3.7 Payment of Interest; Interest Rights Preserved

	Section 3.8 Persons Deemed Owners

	Section 3.9 Cancellation

	Section 3.10 Computation of Interest

- ii - 

 

	 
	ARTICLE 4

	 

	SATISFACTION AND DISCHARGE

	 

	Section 4.1 Satisfaction and Discharge of Indenture

	Section 4.2 Application of Trust Money

	Section 4.3 Reinstatement

	 

	ARTICLE 5

	 

	REMEDIES

	 

	Section 5.1 Events of Default

	Section 5.2 Acceleration of Maturity; Rescission and Annulment

	Section 5.3 Collection of Indebtedness and Suits for Enforcement by Trustee

	Section 5.4 Trustee May File Proofs of Claim

	Section 5.5 Trustee May Enforce Claims Without Possession of Securities

	Section 5.6 Application of Money Collected

	Section 5.7 Limitation on Suits

	Section 5.8 Right of Holders to Receive Principal, Premium and Interest

	Section 5.9 Restoration of Rights and Remedies

	Section 5.10 Rights and Remedies Cumulative

	Section 5.11 Delay or Omission Not Waiver

	Section 5.12 Control by Holders

	Section 5.13 Waiver of Past Defaults

	Section 5.14 Undertaking for Costs

	 

	ARTICLE 6

	 

	THE TRUSTEE

	 

	Section 6.1 Certain Duties and Responsibilities

	Section 6.2 Notice of Defaults

	Section 6.3 Certain Rights of Trustee

	Section 6.4 Not Responsible for Recitals or Issuance of Securities

	Section 6.5 May Hold Securities and Act as Trustee under Other Indentures

	Section 6.6 Money Held in Trust

	Section 6.7 Compensation and Reimbursement

	Section 6.8 Conflicting Interests

	Section 6.9 Eligibility; Disqualification

	Section 6.10 Resignation and Removal; Appointment of Successor

	Section 6.11 Acceptance of Appointment by Successor

	Section 6.12 Merger, Conversion, Consolidation or Succession to Business

	Section 6.13 Preferential Collection of Claims Against Company

	Section 6.14 Appointment of Authenticating Agent

- iii - 

 

	 
	ARTICLE 7

	 

	HOLDERS’ LISTS AND REPORTS BY TRUSTEE AND COMPANY

	 

	Section 7.1 Company to Furnish Trustee Names and Addresses of Holders

	Section 7.2 Preservation of Information; Communications to Holders

	Section 7.3 Reports by Trustee

	Section 7.4 Reports by Company

	 

	ARTICLE 8

	 

	CONSOLIDATION, MERGER, CONVEYANCE, TRANSFER OR LEASE

	 

	Section 8.1 Company May Consolidate, etc., Only on Certain Terms

	Section 8.2 Successor Substituted

	 

	ARTICLE 9

	 

	SUPPLEMENTAL INDENTURES

	 

	Section 9.1 Supplemental Indentures Without Consent of Holders

	Section 9.2 Supplemental Indentures with Consent of Holders

	Section 9.3 Execution of Supplemental Indentures

	Section 9.4 Effect of Supplemental Indentures

	Section 9.5 Conformity with Trust Indenture Act

	Section 9.6 Reference in Securities to Supplemental Indentures

	 

	ARTICLE 10

	 

	COVENANTS

	 

	Section 10.1 Payment of Principal, Premium and Interest

	Section 10.2 Maintenance of Office or Agency

	Section 10.3 Money for Securities Payments to be Held in Trust

	Section 10.4 Statement by Officers as to Default

	Section 10.5 Existence

	Section 10.6 All Securities to be Equally and Ratably Secured

	Section 10.7 Maintenance of Properties

	Section 10.8 Payment of Taxes and Other Claims

	Section 10.9 Waiver of Certain Covenants

	Section 10.10 Additional Amounts

- iv - 

 

	 
	ARTICLE 11

	 

	REDEMPTION OF SECURITIES

	 

	Section 11.1 Applicability of Article

	Section 11.2 Election to Redeem; Notice to Trustee

	Section 11.3 Selection by Trustee of Securities to Be Redeemed

	Section 11.4 Notice of Redemption

	Section 11.5 Deposit of Redemption Price

	Section 11.6 Securities Payable on Redemption Date

	Section 11.7 Securities Redeemed in Part

	 

	ARTICLE 12

	 

	SINKING FUNDS

	 

	Section 12.1 Applicability of Article

	Section 12.2 Satisfaction of Sinking Fund Payments with Securities

	Section 12.3 Redemption of Securities for Sinking Fund

	 

	ARTICLE 13

	 

	DEFEASANCE AND COVENANT DEFEASANCE

	 

	Section 13.1 Company’s Option to Effect Defeasance or Covenant Defeasance

	Section 13.2 Defeasance and Discharge

	Section 13.3 Covenant Defeasance

	Section 13.4 Conditions to Defeasance or Covenant Defeasance

	Section 13.5 Deposited Money, U. S. Government Obligations and Foreign
Government Obligations to be Held in Trust; Miscellaneous
Provisions

	Section 13.6 Reinstatement

- v - 

 

DUSA PHARMACEUTICALS, INC.

     This Cross Reference Sheet shows the location in the Indenture of the provisions inserted
pursuant to Sections 3.10 through 3.18, inclusive, of the Trust Indenture Act of 1939:

	 	 	 	 	 
	Section 310

	 	(a) (1)
	 	6.9
	 

	 	(a) (2)
	 	6.9
	 

	 	(a) (3)
	 	6.9
	 

	 	(a) (4)
	 	Not Applicable
	 

	 	(a) (5)
	 	6.9
	 

	 	(b)
	 	6.8, 6.10
	 

	 	(c)
	 	Not Applicable
	Section 311

	 	(a)
	 	6.13
	 

	 	(b)
	 	6.13
	 

	 	(c)
	 	Not Applicable
	Section 312

	 	(a)
	 	7.1, 7.2
	 

	 	(b)
	 	7.2
	 

	 	(c)
	 	7.2
	Section 313

	 	(a)
	 	7.3
	 

	 	(b)
	 	7.3
	 

	 	(c)
	 	7.3
	 

	 	(d)
	 	7.3
	Section 314

	 	(a) (1)
	 	7.4
	 

	 	(a) (2)
	 	7.4
	 

	 	(a) (3)
	 	7.4
	 

	 	(a) (4)
	 	1.1, 10.4
	 

	 	(b)
	 	Not Applicable
	 

	 	(c) (1)
	 	1.3
	 

	 	(c) (2)
	 	1.3
	 

	 	(c) (3)
	 	Not Applicable
	 

	 	(d)
	 	Not Applicable
	 

	 	(e)
	 	1.3
	Section 315

	 	(a)
	 	6.1
	 

	 	(b)
	 	6.2
	 

	 	(c)
	 	6.1
	 

	 	(d)
	 	6.1
	 

	 	(e)
	 	5.14
	Section 316

	 	(a)
	 	1.1
	 

	 	(a) (1) (A)
	 	5.2, 5.12
	 

	 	(a) (1) (B)
	 	5.13
	 

	 	(a) (2)
	 	Not Applicable
	 

	 	(b)
	 	5.8
	 

	 	(c)
	 	1.5
	Section 317

	 	(a) (1)
	 	5.3
	 

	 	(a) (2)
	 	5.4
	 

	 	(b)
	 	10.3
	Section 318

	 	(a)
	 	1.8

     NOTE: This Cross Reference Sheet is not part of the Indenture.

- vi - 

 

FORM OF INDENTURE

     INDENTURE, dated as of                     , between DUSA PHARMACEUTICALS, INC., a New
Jersey corporation (the “Company”), having its principal office at                     ,
and                                         , as trustee, (the “Trustee”),
the office of the Trustee at which at the date hereof its corporate trust business is principally
administered being                                         .

RECITALS

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

     This Indenture is subject to the provisions of the Trust Indenture Act and the rules and
regulations of the Commission promulgated thereunder that are required to be part of this Indenture
and, to the extent applicable, shall be governed by such provisions.

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

     NOW, THEREFORE, for and in consideration of the premises and the purchase of the Securities by
the Holders thereof, each party agrees for the benefit of the other party and for the equal and
ratable benefit of the Holders of the Securities, or of series thereof, issued under this
Indenture, as follows:

ARTICLE 1

DEFINITIONS AND OTHER PROVISIONS OF GENERAL APPLICATION 

     Section 1.1 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 accounting terms not otherwise defined herein have the meanings assigned to them in
accordance with generally accepted accounting principles in the United States of America, 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 in the United States of America as are generally accepted as of the time when and for
the period as to which such accounting principles are to be applied;

          (3) “or” is not exclusive;

          (4) any reference to an “Article” or a “Section” refers to an Article or a
Section, as the case may be, of this Indenture;

          (5) 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; and

          (6) certain terms, used principally in Article 6, are defined in Section 1.2.

     “Act,” when used with respect to any Holder, has the meaning specified in Section
1.5.

     “Additional Amounts” means any additional amounts that are required by the express
terms of a Security or by or pursuant to a Board Resolution, under circumstances specified therein
or pursuant thereto, to be paid by the Company with respect to certain taxes, assessments or other
governmental charges imposed on certain Holders and that are owing to such Holders.

     “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 purposes of this definition, “control” when used with respect to any specified

- 1 -

 

Person means the power to direct the management and policies of such Person, directly or
indirectly, whether through the ownership of voting securities, by contract or otherwise; and the
terms “controlling” and “controlled” have meanings correlative to the foregoing.

     “Authenticating Agent” means any Person, which may include the Company, authorized by
the Trustee pursuant to Section 6.14 to act on behalf of the Trustee to authenticate
Securities of one or more series.

     “Authorized Newspaper” means a newspaper of general circulation in the New York, New
York area, printed in the English language and customarily published on each Business Day, whether
or not published on Saturdays, Sundays or holidays. Whenever successive weekly publications in an
Authorized Newspaper are required hereunder they may be made (unless otherwise expressly provided
herein) on the same or different days of the week and in the same or in different Authorized
Newspapers.

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

     “Board” or “Board of Trustees” means either the board of trustees of the
Company or any duly authorized committee thereof.

     “Board Resolution” means a copy of a resolution certified by the Secretary or an
Assistant Secretary of the Company to have been duly adopted by the Board of Trustees 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, or the city in which the Corporate Trust Office is located, are authorized or
obligated by law or executive order to close.

     “Commission” means the Securities and Exchange Commission, 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.

     “Common Shares” includes any shares of beneficial interest of any class of the Company
which has no preference in respect of dividends or of amounts payable in the event of any voluntary
or involuntary liquidation, dissolution or winding-up of the Company and which is not subject to
redemption by the Company.

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

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

     “Corporate Trust Office” means the corporate trust office of the Trustee at
                    , Attention: Corporate Trust Department, or such other office, designated by the Trustee
by written notice to the Company, at which at any particular time its corporate trust business
shall be administered.

     “Covenant Defeasance” has the meaning specified in Section 13.3.

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

     “default” means, with respect to the Securities of any series, any event, act or
condition that is, or after notice or the passage of time or both would be, an Event of Default
with respect to Securities of such series.

     “Defaulted Interest” has the meaning specified in Section 3.7.

     “Defeasance” has the meaning specified in Section 13.2.

     “Depositary” means, with respect to Securities of any series issuable in whole or in
part in the form of one or more Global Securities, The Depository Trust Company, New York, New
York, another clearing agency, or any successor, registered under the Exchange Act that is
designated to act as Depositary for such Securities as contemplated by Section 3.1.

- 2 -

 

     “Dollar” or “$” means a dollar or other equivalent unit in such coin or
currency of the United States as at the time shall be legal tender for the payment of public and
private debts.

     “euro” or “euros” means the currency adopted by those nations participating in
the third stage of the economic and monetary union provisions of the Treaty on European Union,
signed at Maastricht on February 7, 1992.

     “European Economic Area” means the member nations of the European Economic Area
pursuant to the Oporto Agreement on the European Economic Area dated May 2, 1992, as amended.

     “European Union” means the member nations of the European Union established by the
Treaty of European Union, signed at Maastricht on February 2, 1992, which amended the Treaty of
Rome establishing the European Community.

     “Event of Default” has the meaning specified in Section 5.1.

     “Exchange Act” means the Securities Exchange Act of 1934 and any statute successor
thereto, in each case as amended from time to time.

     “Exchange Rate” has the meaning specified in Section 3.2.

     “Expiration Date” has the meaning specified in Section 1.5.

     “Foreign Government Obligation” means with respect to Securities of any series which
are not denominated in the currency of the United States of America (x) any security which is (i) a
direct obligation of the government which issued or caused to be issued the currency in which such
security is denominated and for the payment of which obligations its full faith and credit is
pledged or, with respect to Securities of any series which are denominated in euros, a direct
obligation of any member nation of the European Union for the payment of which obligation the full
faith and credit of the respective nation is pledged so long as such nation has a credit rating at
least equal to that of the highest rated member nation of the European Economic Area, or (ii) an
obligation of a Person controlled or supervised by and acting as an agency or instrumentality of a
government specified in clause (i) above the payment of which is unconditionally guaranteed as a
full faith and credit obligation by the such government, which, in either case (i) or (ii), is not
callable or redeemable at the option of the issuer thereof, and (y) any depositary receipt issued
by a bank (as defined in Section 3(a)(2) of the Securities Act) as custodian with respect
to any Foreign Government Obligation which is specified in clause (x) above and held by such bank
for the account of the holder of such depositary receipt, or with respect to any specific payment
of principal of or interest on any Foreign Government Obligation which is so specified and held,
provided that (except as required by law) such custodian is not authorized to make any deduction
from the amount payable to the holder of such depositary receipt from any amount received by the
custodian in respect of the Foreign Government Obligation or the specific payment of principal or
interest evidenced by such depositary receipt.

     “Global Security” means a Security that evidences all or part of the Securities of any
series and bears the legend set forth in Section 2.4 (or such legend as may be specified as
contemplated by Section 3.1 for such Securities).

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

     “Indenture” means this instrument as originally executed and as it may from time to
time be supplemented or amended by one or more indentures supplemental hereto entered into pursuant
to the applicable provisions hereof, including, for all purposes of this instrument and any such
supplemental indenture, the provisions of the Trust Indenture Act that are deemed to be a part of
and govern this instrument and any such supplemental indenture, respectively. The term
“Indenture” shall also include the terms of particular series of Securities established as
contemplated by Section 3.1; provided, however, that if at any time more than one Person is
acting as Trustee under this Indenture due to the appointment of one or more separate Trustees for
any one or more separate series of Securities, “Indenture” shall mean, with respect to such
series of Securities for which any such Person is Trustee, 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 for which such Person is Trustee established as contemplated by
Section 3.1, exclusive, however, of any provisions or terms which relate solely to other
series of Securities for which such Person is not Trustee, regardless of when such terms or
provisions were adopted, and exclusive of any provisions or terms adopted by means of one or more
indentures supplemental hereto executed and delivered after such Person had become such Trustee,
but to which such person, as such Trustee, was not a party; provided, further that in the event

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that this Indenture is supplemented or amended by one or more indentures supplemental hereto which
are only applicable to certain series of Securities, the term “Indenture” for a particular
series of Securities shall exclude provisions or terms which relate solely to other series of
Securities.

     “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.

     “Investment Company Act” means the Investment Company Act of 1940 and any statute
successor thereto, in each case as amended from time to time.

     “Judgment Currency” has the meaning specified in Section 5.6.

     “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, repurchase at
the option of the Holder, call for redemption or otherwise.

     “Mortgage” means and includes any mortgage, pledge, lien, security interest,
conditional sale or other title retention agreement or other similar encumbrance.

     “Notice of Default” means a written notice of the kind specified in Section
5.1(4).

     “Officers’ Certificate” means a certificate signed by the Chairman of the Board, the
Chief Executive Officer, the President or a Vice President, and by the principal financial officer,
the Treasurer, the Controller, an Assistant Treasurer, an Assistant Controller, 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 10.4 shall be the principal executive,
financial or accounting officer of the Company.

     “Opinion of Counsel” means a written opinion of legal counsel, who may be, without
limitation, (a) an employee of the Company, or (b) outside counsel designated by the Company,
rendered, if applicable, in accordance with Section 314(c) of the Trust Indenture Act.

     “Original Issue Discount Security” means any Security that 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 5.2.

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

     (1) Securities theretofore canceled by the Trustee or delivered to the Trustee for
cancellation;

     (2) 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;

     (3) Securities which have been paid pursuant to Section 3.6 or in exchange for or in
lieu of which other Securities have been authenticated and delivered pursuant to this Indenture,
other than any such Securities in respect of which there shall have been presented to the Trustee
proof satisfactory to it that such Securities are held by a bona fide purchaser in whose hands such
Securities are valid obligations of the Company; provided, however, that unless otherwise provided
with respect to any Securities of any series pursuant to Section 3.1, in determining
whether the Holders of the requisite principal amount of the Outstanding Securities have given,
made or taken any request, demand, authorization, direction, notice, consent, waiver or other
action hereunder as of any date, (A) the principal amount of an Original Issue Discount Security
which shall be deemed to be Outstanding shall be the amount of the principal thereof which would be
due and payable as of such date upon acceleration of the Maturity thereof to such date pursuant to
Section 5.2, (B) if, as of such date, the principal amount payable at the Stated Maturity
of a Security is not determinable, the principal amount of such Security which shall be deemed to
be Outstanding shall be the amount as specified or determined as contemplated by Section
3.1,

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(C) the principal amount of a Security denominated in one or more non-U.S. dollar currencies or
currency units which shall be deemed to be Outstanding shall be the U.S. dollar equivalent,
determined as of such date in the manner provided as contemplated by Section 3.1, of the
principal amount of such Security (or, in the case of a Security described in clause (A) or
(B) above, of the amount determined as provided in such clause), and (D) Securities owned
by the Company or any other obligor upon the Securities or any Subsidiary 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, waiver or other action, only Securities which a Responsible Officer of
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 Subsidiary of the Company or of
such other obligor.

     “Paying Agent” means any Person, which may include the Company, authorized by the
Company to pay the principal of or any premium or interest on, or any Additional Amounts with
respect to, any one or more series of Securities on behalf of the Company.

     “Periodic Offering” means an offering of Securities of a series from time to time the
specific terms of which Securities, including, without limitation, the rate or rates of interest or
formula for determining the rate or rates of interest thereon, if any, the Maturity thereof and the
redemption provisions, if any, with respect thereto, are to be determined by the Company upon the
issuance of such Securities.

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

     “Place of Payment,” when used with respect to the Securities of any series, means the
place or places where the principal of and any premium and interest on, or any Additional Amounts
with respect to, the Securities of that series are payable as specified as contemplated by
Section 3.1 and 10.2.

     “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
3.6 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.

     “Preferred Shares” as applied to the shares of beneficial interest of the Company
means shares of beneficial interest of any class or classes (however designated) which is preferred
as to the payment of dividends, or as to the distribution of assets upon any voluntary or
involuntary liquidation or dissolution of the Company, over Common Shares of the Company.

     “Record Date” means any Regular Record Date or Special Record Date.

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

     “Regular Record Date” for the interest payable on any Interest Payment Date on the
Securities of any series means any date specified for that purpose as contemplated by Section
3.1, or, if not so specified, the first day of the calendar month of the month of such Interest
Payment Date if such Interest Payment Date is the fifteenth day of the calendar month, or the
fifteenth day of the calendar month preceding such Interest Payment Date if such Interest Payment
Date is the first day of a calendar month, whether or not such day shall be a Business Day.

     “Required Currency” has the meaning specified in Section 5.6.

     “Responsible Officer” means, when used with respect to the Trustee, an officer of the
Trustee in the Corporate Trust Office assigned and duly authorized by the Trustee to administer its
corporate trust matters.

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     “Securities” has the meaning stated in the first recital of this Indenture and more
particularly means any debentures, notes or other evidences of indebtedness of the Company
authenticated and delivered under this Indenture.

     “Securities Act” means the Securities Act of 1933 and any statute successor thereto,
in each case as amended from time to time.

     “Security Custodian” means, with respect to Securities of a series issued in global
form, the Trustee for Securities of such series, acting in its capacity as custodian with respect
to the Securities of such series, or any successor entity thereto.

     “Security Register” and “Security Registrar” have the respective meanings
specified in Section 3.5.

     “Special Record Date” for the payment of any Defaulted Interest means a date fixed by
the Trustee pursuant to Section 3.7.

     “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 any Person of which the Company at the time owns or controls,
directly or indirectly, more than 50% of the shares of outstanding stock or other equity interests
having general voting power under ordinary circumstances to elect a majority of the board of
directors, managers or trustees, as the case may be, of such Person (irrespective of whether or not
at the time stock of any other class or classes or other equity interests of such corporation shall
have or might have voting power by reason of the happening of any contingency).

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

     “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.

     “United States or United States of America” means the United States of America
(including the states thereof and the District of Columbia) and its “possessions”, which include
Puerto Rico, the U.S. Virgin Islands, Guam, American Somoa, Wake Island and the Northern Mariana
Islands.

     “United States Alien” means any Person who, for United States federal income tax
purposes, is a foreign corporation, a nonresident alien individual, a nonresident alien or foreign
fiduciary of an estate or trust, or a foreign partnership.

     “U.S. Government Obligation” means (x) any security which is (i) a direct obligation
of the United States of America for the payment of which the full faith and credit of the United
States of America is pledged or (ii) an obligation 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 (i) or (ii), is not callable or redeemable at the option of the issuer
thereof, and (y) any depositary receipt issued by a bank (as defined in Section 3(a)(2) of
the Securities Act) as custodian with respect to any U.S. Government Obligation which is specified
in clause (x) above and held by such bank for the account of the holder of such depositary receipt,
or with respect to any specific payment of principal of or interest on any U.S. Government
Obligation which is so specified and held, provided that (except as required by law) such custodian
is not authorized to make any deduction from the amount payable to the holder of such depositary
receipt from any amount received by the custodian in respect of the U.S. Government Obligation or
the specific payment of principal or interest evidenced by such depositary receipt.

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

     “Yield to Maturity” means, when used with respect to any Original Issue Discount
Security, the yield to maturity, if any, set forth on the face thereof.

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     Section 1.2 Incorporation by Reference of Trust Indenture Act.

     Whenever this Indenture refers to a provision of the Trust Indenture Act, the provision is
incorporated by reference in and made a part of this Indenture. The following Trust Indenture Act
terms used in this Indenture have the following meanings:

     “indenture securities” means the Securities.

     “indenture security holder” means a Holder.

     “indenture to be qualified” means this Indenture.

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

     “obligor” on the indenture securities means the Company or any other obligor on the
Securities.

     All terms used in this Indenture that are defined by the Trust Indenture Act, defined by a
Trust Indenture Act reference to another statue or defined by Commission rule under the Trust
Indenture Act and not otherwise defined herein have the meanings assigned to them therein.

     Section 1.3 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 such certificates and opinions as may be required under the Trust
Indenture Act. Each such certificate or opinion shall be given in the form of an Officers’
Certificate, if to be given by an officer of the Company, or an Opinion of Counsel, if to be given
by counsel, and shall comply with the requirements of the Trust Indenture Act and any other
requirements set forth in this Indenture.

     Every certificate or opinion with respect to compliance with a condition or covenant provided
for in this Indenture (other than pursuant to Section 10.4) shall include,

          (1) a statement that each Person 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 Person, such Person has made such
examination or investigation as is necessary to enable such Person 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 Person, such condition or covenant
has been complied with.

     Section 1.4 Form of Documents Delivered to Trustee.

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

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

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     Any certificate or opinion of an officer of the Company or of counsel may be based, insofar as
it relates to accounting matters, upon a certificate or opinion of or representations by an
accountant or firm of accountants employed or retained by the Company unless such officer or
counsel, as the case may be, knows, or in the exercise of reasonable care should know, that the
certificate or opinions or representations as to such accounting 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 1.5 Acts of Holders; Record Dates.

     Any request, demand, authorization, direction, notice, consent, waiver or other action
provided or permitted by this Indenture to be given, made or taken by Holders of the Outstanding
Securities of all series or one or more series, as the case may be, 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 delivered to the Trustee
and, where it is hereby expressly required, to the Company. The Trustee shall promptly deliver to
the Company copies of all such instrument or instruments delivered to the Trustee. 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 6.1) conclusive in favor of the
Trustee and the Company, if made in the manner provided in this Section.

     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 or her the execution thereof. Where such
execution is by a signer acting in a capacity other than his or her individual capacity, such
certificate or affidavit shall also constitute sufficient proof of his or her 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 that the Trustee deems sufficient.

     The ownership, date of holding, principal amount and serial numbers of Securities shall be
proved by the Security Register.

     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, the Company in
reliance thereon, whether or not notation of such action is made upon such Security. Any consent or
waiver of the Holder of any Security shall be irrevocable for a period of six months after the date
of execution thereof, but otherwise any such Holder or subsequent Holder may revoke the request,
demand, authorization, direction, notice, consent or other Act as to his Security or portion of his
Security; provided, however, that such revocation shall be effective only if the Trustee receives
the notice of revocation before the date the Act becomes effective.

     The Company may set any day as a record date for the purpose of determining the Holders of
Outstanding Securities of any series entitled to give, make or take any request, demand,
authorization, direction, vote, notice, consent, waiver or other action provided or permitted by
this Indenture to be given, made or taken by Holders of Securities of such series, provided that
the Company may not set a record date for, and the provisions of this paragraph shall not apply
with respect to, the giving or making of any notice, declaration, request or direction referred to
in the next paragraph. If any record date is set pursuant to this paragraph, the Holders of
Outstanding Securities of the relevant series on such record date, and no other Holders, shall be
entitled to take the relevant action, whether or not such Holders remain Holders after such record
date; provided that no such action shall be effective hereunder unless taken on or prior to the
applicable Expiration Date by Holders of the requisite principal amount of Outstanding Securities
of such series on such record date. Nothing in this paragraph shall be construed to prevent the
Company from setting a new record date for any action for which a record date has previously been
set pursuant to this paragraph (whereupon the record date previously set shall automatically and
with no action by any Person be canceled and of no effect), and nothing in this paragraph shall be
construed to render ineffective any action taken by Holders of the requisite principal amount of
Outstanding Securities of the relevant series on the date such action is taken. Promptly after any
record date is set pursuant to this paragraph, the Company, at its own expense, shall cause notice
of such record date, the proposed action by Holders and the applicable Expiration Date to be given
to the Trustee in writing and to each Holder of Securities of the relevant series in the manner set
forth in Section 1.7.

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     The Trustee may set any day as a record date for the purpose of determining the Holders of
Outstanding Securities of any series entitled to join in the giving or making of (i) any Notice of
Default, (ii) any declaration of acceleration referred to in Section 5.2, (iii) any request
to institute proceedings referred to in Section 5.7(2) or (iv) any direction referred to in
Section 5.12, in each case with respect to Securities of such series. If any record date is
set pursuant to this paragraph, the Holders of Outstanding Securities of such series on such record
date, and no other Holders, shall be entitled to join in such notice, declaration, request or
direction, whether or not such Holders remain Holders after such record date; provided that no such
action shall be effective hereunder unless taken on or prior to the applicable Expiration Date by
Holders of the requisite principal amount of Outstanding Securities of such series on such record
date. Nothing in this paragraph shall be construed to prevent the Trustee from setting a new record
date for any action for which a record date has previously been set pursuant to this paragraph
(whereupon the record date previously set shall automatically and with no action by any Person be
canceled and of no effect), and nothing in this paragraph shall be construed to render ineffective
any action taken by Holders of the requisite principal amount of Outstanding Securities of the
relevant series on the date such action is taken. Promptly after any record date is set pursuant to
this paragraph, the Trustee, at the Company’s expense, shall cause notice of such record date, the
proposed action by Holders and the applicable Expiration Date to be given to the Company in writing
and to each Holder of Securities of the relevant series in the manner set forth in Section
1.7.

     With respect to any record date set pursuant to this Section, the party hereto which sets such
record dates may designate any day as the “Expiration Date” and from time to time may
change the Expiration Date to any earlier or later day; provided that no such change shall be
effective unless notice of the proposed new Expiration Date is given to the other party hereto in
writing, and to each Holder of Securities of the relevant series in the manner set forth in
Section 1.7, on or prior to the existing Expiration Date. If an Expiration Date is not
designated with respect to any record date set pursuant to this Section 1.5, the party
hereto which set such record date shall be deemed to have initially designated the 180th day after
such record date as the Expiration Date with respect thereto, subject to its right to change the
Expiration Date as provided in this paragraph. Notwithstanding the foregoing, no Expiration Date
shall be later than the 180th day after the applicable record date.

     Without limiting the foregoing, a Holder entitled hereunder to take any action hereunder with
regard to any particular Security may do so with regard to all or any part of the principal amount
of such Security or by one or more duly appointed agents each of which may do so pursuant to such
appointment with regard to all or any part of such principal amount.

     Section 1.6 Notices, etc., to Trustee and Company.

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

          (1) the Trustee by any Holder or by the Company shall be sufficient for every purpose
hereunder if made, given, furnished or filed in writing (or by facsimile transmissions, provided
that oral confirmation of receipt shall have been received) to or with the Trustee at its Corporate
Trust Office, Attention: Corporate Trust Department, 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 furnished by certified
mail, return receipt requested, personally delivered or furnished via overnight courier 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, Attention: Chief Financial Officer.

     Section 1.7 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, or delivered by hand or overnight courier to each Holder affected by
such event, at its address as it appears in the Security Register, not later than the latest date
(if any), and not earlier than the earliest date (if any), prescribed for the giving of such
notice. Neither the failure to mail or deliver by hand or overnight courier any notice, nor any
defect in any notice so mailed or delivered by hand or overnight courier, 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 notice to Holders of Securities by mail, then such notification as
shall be made with the approval of the Trustee shall constitute a sufficient

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notification for every purpose hereunder. In any case in which notice to Holders of Securities is
given by mail, neither the failure to mail such notice, nor any defect in any notice so mailed, to
any particular Holder of a Security, shall affect the sufficiency of such notice with respect to
other Holders of Securities.

     Section 1.8 Conflict with Trust Indenture Act.

     If any provision hereof limits, qualifies or conflicts with a provision of the Trust Indenture
Act or another provision hereof required to be included in this Indenture by any of the provisions
of the Trust Indenture Act, the latter provision shall control. If any provision of this Indenture
modifies or excludes any provision of the Trust Indenture Act, which may be so modified or
excluded, the latter provision shall be deemed to apply to this Indenture as so modified or to be
excluded, as the case may be.

     Section 1.9 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 1.10 Successors and Assigns.

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

     Section 1.11 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 1.12 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, any Authenticating Agent, Paying
Agent or Security Registrar, and the Holders, any benefit or any legal or equitable right, remedy
or claim under this Indenture.

     Section 1.13 Governing Law.

     THIS INDENTURE AND THE SECURITIES SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE
LAWS OF THE STATE OF NEW YORK, BUT WITHOUT GIVING EFFECT TO APPLICABLE PRINCIPLES OF CONFLICTS OF
LAW TO THE EXTENT THE APPLICATION OF THE LAWS OF ANOTHER JURISDICTION WOULD BE REQUIRED THEREBY.

     Section 1.14 Legal Holidays.

     Unless otherwise provided with respect to any Security or Securities pursuant to Section
3.1, in any case where any Interest Payment Date, Redemption Date, sinking fund payment date,
or Stated Maturity or Maturity or other payment date of any Security or the last date on which a
Holder has the right to convert a Security at a particular conversion price shall not be a Business
Day at any Place of Payment, then (notwithstanding any other provision of this Indenture or of the
Securities (other than a provision of any Security which specifically states that such provision
shall apply in lieu of this Section)) payment of interest or principal (and premium, if any) or, if
applicable to a particular series of Securities, conversion 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, at the
Stated Maturity or on such last day for conversion, as the case may be.

     Section 1.15 Indenture and Securities Solely Corporate Obligations.

     No recourse for the payment of the principal of or premium, if any, or interest on any
Security, or for any claim based thereon or otherwise in respect thereof, and no recourse under or
upon any obligation, covenant or agreement of the Company in this Indenture or in any supplemental
indenture or in any Security, or because of the creation of any indebtedness represented thereby,
shall be had, directly or indirectly, against any incorporator, subscriber to the shares of
beneficial interest (or capital stock or membership interests

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(as applicable)), shareholder, stockholder, member, employee, agent, manager, officer, trustee or
director, as such, past, present or future, of the Company or the Trustee or of any predecessor or
successor corporation, either directly or through the Company or the Trustee or any predecessor or
successor corporation, whether by virtue of any constitution, statute or rule of law, or by the
enforcement of any assessment or penalty or otherwise; it being expressly understood that this
Indenture and the obligations issued hereunder are solely corporate obligations and that no such
personal liability whatever shall attach to, or is or shall be incurred by, any incorporator,
subscriber to the shares of beneficial interest (or capital stock or membership interests (as
applicable)), shareholder, stockholder, member, employee, agent, manager, officer, trustee or
director, as such, of the Company or the Trustee or of any predecessor or successor corporation,
because of the creation of the indebtedness hereby authorized, or under or by reason of the
obligations, covenants or agreements contained in this Indenture or in any of the Securities or
implied therefrom; and that any and all such personal liability of every name and nature, either at
common law or in equity or by constitution or statute, of, and any and all such rights and claims
against, every such incorporator, subscriber to the shares of beneficial interest (or capital stock
or membership interests (as applicable)), shareholder, stockholder, member, employee, agent,
manager, officer, trustee or director, as such, because of the creation of the indebtedness hereby
authorized, or under or by reason of the obligations, covenants or agreements contained in this
Indenture, any supplemental indenture hereto, any certificate or other writing delivered in
connection herewith, or in any of the Securities or implied therefrom, are hereby expressly waived
and released as a condition of, and as a consideration for, the execution of this Indenture and the
issuance of such Securities. By accepting a Security, each Holder agrees to the provisions of this
Section 1.15 and waives and releases all such liability. Such waiver and release shall be
part of the consideration for the issuance of the Securities.

     Section 1.16 Indenture May be Executed in Counterparts.

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

ARTICLE 2

SECURITY FORMS 

     Section 2.1 Forms Generally.

     The Securities of each series shall be in such form or forms as shall be established by or
pursuant to one or more Board Resolutions and set forth in such Board Resolutions, or, to the
extent established pursuant to, rather than set forth in, such Board Resolutions, an Officers’
Certificate detailing such establishment, 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
any applicable law or with any rules or regulations pursuant thereto, or any rules of any
securities exchange or Depositary 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, or, to the
extent established pursuant to, rather than set forth in, such Board Resolutions, an Officers’
Certificate detailing such establishment, 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 3.3 for the
authentication and delivery of such Securities. Any such Board Resolution, Officers’ Certificate or
record of such action shall have attached thereto a true and correct copy of the form of Security
referred to therein approved by or pursuant to such Board Resolution or Officers’ Certificate.

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

     Section 2.2 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 herein referred to in the
within-mentioned Indenture.

                                                            

          [Trustee], as Trustee

By:                                                             

          Authorized Officer

- 11 -

 

     Section 2.3 Global Securities.

     If the Company shall establish pursuant to Section 3.1 that the Securities of a
particular series are to be issued in whole or in part in the form of one or more Global
Securities, then the Company shall execute and the Trustee shall, in accordance with Section
3.3 and the Company Order delivered to the Trustee thereunder, authenticate and deliver such
Global Security or Securities, which (i) shall represent, and shall be denominated in an amount
equal to the aggregate principal amount of the Outstanding Securities of such series to be
represented by such Global Security or Securities, (ii) may provide that the aggregate amount of
Outstanding Securities represented thereby may from time to time be increased or reduced to reflect
exchanges, (iii) shall be registered in the name of the Depositary for such Global Security or
Securities or its nominee, (iv) shall be delivered by the Trustee to the Depositary or pursuant to
the Depositary’s instruction and (v) shall bear a legend in accordance with the requirements of the
Depositary.

     Notwithstanding any other provision of this Section or of Section 3.5, except as
contemplated by the provisions of this Section 2.3 below, unless the terms of a Global
Security expressly permit such Global Security to be exchanged in whole or in part for individual
Securities, a Global Security may be transferred, in whole but not in part and in the manner
provided in Section 3.5, only to a nominee of the Depositary for such Global Security, or
to the Depositary, or to a successor Depositary for such Global Security selected or approved by
the Company, or to a nominee of such successor Depositary.

     If at any time the Depositary for a Global Security notifies the Company that it is unwilling
or unable to continue as the Depositary for such Global Security or if at any time the Depositary
for the Securities for such series shall no longer be eligible or in good standing under the
Exchange Act, or other applicable statute or regulation, the Company shall appoint a successor
Depositary with respect to such Global Security. If a successor Depositary for such Global Security
is not appointed by the Company within 90 days after the Company receives such notice or becomes
aware of such ineligibility, the Company will execute, and the Trustee, upon receipt of a Company
Order for the authentication and delivery of Securities of such series in the form of definitive
certificates in exchange for such Global Security, will authenticate and deliver Securities of such
series in the form of definitive certificates of like tenor and terms in an aggregate principal
amount equal to the principal amount of the Global Security in exchange for such Global Security.
Such Securities will be issued to and registered in the name of such Person or Persons as are
specified by the Depositary.

     The Company may at any time and in its sole discretion determine that the Securities of any
series issued or issuable in the form of one or more Global Securities shall no longer be
represented by such Global Security or Securities. In any such event the Company will execute, and
the Trustee, upon receipt of a Company Request for the authentication and delivery of Securities in
the form of definitive certificates in exchange in whole or in part for such Global Security, will
authenticate and deliver without service charge to each Person specified by the Depositary
Securities in the form of definitive certificates of like tenor and terms in an aggregate principal
amount equal to the principal amount of such Global Security representing such series, or the
aggregate principal amount of such Global Securities representing such series, in exchange for such
Global Security or Securities.

     If specified by the Company pursuant to Section 3.1 with respect to Securities issued
or issuable in the form of a Global Security, the Depositary for such Global Security may surrender
such Global Security in exchange in whole or in part for Securities in the form of definitive
certificates of like tenor and terms on such terms as are acceptable to the Company and such
Depositary. Thereupon the Company shall execute, and the Trustee shall authenticate and deliver,
without service charge, (A) to each Person specified by such Depositary a new Security or
Securities of the same series of like tenor and terms and any authorized denomination as requested
by such Person in aggregate principal amount equal to and in exchange for such Person’s beneficial
interest in the Global Security and (B) to such Depositary a new Global Security of like tenor and
terms and in an authorized denomination equal to the difference, if any, between the principal
amount of the surrendered Global Security and the aggregate principal amount of Securities
delivered to Holders thereof.

     In any exchange provided for in any of the preceding three paragraphs, the Company shall
execute and the Trustee shall authenticate and deliver Securities in the form of definitive
certificates in authorized denominations. Upon the exchange of the entire principal amount of a
Global Security for Securities in the form of definitive certificates, such Global Security shall
be canceled by the Trustee. Except as provided in the immediately preceding subparagraph,
Securities issued in exchange for a Global Security pursuant to this Section 2.3 shall be
registered in such names and in such authorized denominations as the Depositary for such Global
Security, acting pursuant to instructions from its direct or indirect participants or otherwise,
shall instruct the Trustee. Provided that the Company and the Trustee have so agreed, the Trustee
shall deliver such Securities to the Persons in whose names the Securities are so to be registered.

- 12 -

 

     Any endorsement of a Global Security to reflect the principal amount thereof, or any increase
or decrease in such principal amount, or changes in the rights of Holders of Outstanding Securities
represented thereby shall be made in such manner and by such Person or Persons as shall be
specified in or pursuant to any applicable letter of representations or other arrangement entered
into with, or procedures of, the Depositary with respect to such Global Security or in the Company
Order delivered or to be delivered pursuant to Section 3.3 or Section 3.4 with
respect thereto. Subject to the provisions of Section 3.3 and, if applicable, Section
3.4, the Trustee shall deliver and redeliver any such Global Security in the manner and upon
instructions given by the Person or Persons specified in or pursuant to any applicable letter of
representations or other arrangement entered into with, or procedures of, the Depositary with
respect to such Global Security or in any applicable Company Order. If a Company Order pursuant to
Section 3.3 or Section 3.4 is so delivered, any instructions by the Company with
respect to such Global Security contained therein shall be in writing but need not be accompanied
by or contained in an Officers’ Certificate and need not be accompanied by an Opinion of Counsel.

     The Depositary or, if there be one, its nominee, shall be the Holder of a Global Security for
all purposes under this Indenture; and beneficial owners with respect to such Global Security shall
hold their interests pursuant to applicable procedures of such Depositary. The Company, the
Trustee, the Paying Agent and the Security Registrar shall be entitled to deal with such Depositary
for all purposes of this Indenture relating to such Global Security (including the payment of
principal, premium, if any, and interest and any Additional Amounts with respect to such Global
Security and the giving of instructions or directions by or to the beneficial owners of such Global
Security as the sole Holder of such Global Security and shall have no obligations to the beneficial
owners thereof (including any direct or indirect participants in such Depositary). None of the
Company, the Trustee, any Paying Agent or the Security Registrar shall have any responsibility or
liability for any aspect of the records relating to or payments made on account of beneficial
ownership interests of a Global Security in or pursuant to any applicable letter of representations
or other arrangement entered into with, or procedures of, the Depositary with respect to such
Global Security or for maintaining, supervising or reviewing any records relating to such
beneficial ownership interests.

     Section 2.4 Form of Legend for Global Securities.

     Unless otherwise specified as contemplated by Section 3.1 for the Securities evidenced
thereby, every 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 DEPOSITARY OR A NOMINEE THEREOF. THIS SECURITY MAY NOT BE
EXCHANGED IN WHOLE OR IN PART FOR A SECURITY REGISTERED, AND NO TRANSFER OF THIS SECURITY IN WHOLE
OR IN PART MAY BE REGISTERED, IN THE NAME OF ANY PERSON OTHER THAN SUCH DEPOSITARY OR A NOMINEE
THEREOF, EXCEPT IN THE LIMITED CIRCUMSTANCES DESCRIBED IN THE INDENTURE.

     Section 2.5 Form of Face of Security.

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

DUSA PHARMACEUTICALS, INC.

 

			
	 	 	 
	No.                     
	 	$                     
	 	 	 

     DUSA Pharmaceuticals, Inc., a corporation duly organized and existing under the laws of New
Jersey (herein called the “Company”, which term includes any successor Person under the Indenture
hereinafter referred to), for value received, hereby promises to pay to                                         
        , or registered assigns, the principal sum of                                         
Dollars 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 —, and at the rate of                     % per annum on any overdue principal
and premium and on any overdue installment of interest]. The interest so payable, and punctually
paid or duly provided for, on any Interest Payment Date will, as provided in such Indenture, be
paid to the Person in whose name this Security (or one or more Predecessor Securities) is
registered at the close of business on the Regular Record Date for such interest, which shall be
the                      or                      (whether or not a

- 13 -

 

Business Day),
as the case may be,
next preceding such Interest Payment Date. Any such interest not so punctually paid or duly
provided for will forthwith cease to be payable to the Holder on such Regular Record Date and may
either be paid to the Person in whose name this Security (or one or more Predecessor Securities) is
registered at the close of business on a Special Record Date for the payment of such Defaulted
Interest to be fixed by the Trustee, notice whereof shall be given to Holders of Securities of this
series not less than 10 days prior to such Special Record Date, or be paid at any time in any other
lawful manner not inconsistent with the requirements of any securities exchange on which the
Securities of this series may be listed, and upon such notice as may be required by such exchange,
all as more fully provided in said Indenture].

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

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

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

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

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

Dated:

	 	 	 	 	 
	 	DUSA PHARMACEUTICALS, INC.

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

Attest:

                                                            

Section 2.6 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
                                         , 20                     (herein
called the “Indenture”), between the Company and                                         ,
as Trustee (herein called the “Trustee”, which term includes any successor trustee under the
Indenture), to which Indenture and all indentures supplemental thereto reference is hereby made for
a statement of the respective rights, limitations of rights, duties and immunities thereunder of
the Company, the Trustee and the Holders of the Securities and of the terms upon which the
Securities are, and are to be, authenticated and delivered. This Security is one of the series
designated on the face hereof [if applicable insert —, limited in aggregate principal
amount to $                   
 ].

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

- 14 -

 

before            
                     
        , ___%, and if
redeemed] during the 12-month period beginning              
                     
       of
the years indicated,

	 	 	 	 	 	 	 	 	 	 	 	 	 
	Year	 	Redemption Price	 	 	Year	 	 	Redemption 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 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 [if applicable, insert — 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	 
	 	 	Redemption Price	 	 	Price For Redemption	 
	 	 	For Redemption Through	 	 	Otherwise Than Through	 
	Year	 	Operation of the Sinking Fund	 	 	Operation of the Sinking Fund	 
	 
	 	 	 	 	 	 	 	 

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.]

     [If applicable, insert — The sinking fund for this series provides for the redemption
on                      in each year beginning with the year 
 and ending with the year                  
    of [if applicable,
insert — 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
(if applicable, insert — mandatory] sinking fund payments may be credited against
subsequent [if applicable, insert — mandatory] sinking fund payments otherwise required to
be made [if applicable, insert — in the inverse order in which they become due).]

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

     [If applicable, insert — The Indenture contains provisions for defeasance at any time
of (l) the entire indebtedness of this Security or (2) certain restrictive covenants and Events of
Default with respect to this Security, in each case upon compliance with certain conditions set
forth in the Indenture.]

     [If the Security is not an Original Issue Discount Security, insert — 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, insert — 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 and overdue interest all of the Company’s obligations
in respect of the payment of the principal of and interest, if any, on the Securities of this
series shall terminate.]

- 15 -

 

     The Indenture permits, with certain exceptions as therein provided, the amendment thereof and
the modification of the rights and obligations of the Company and the rights of the Holders of the
Securities of each series to be affected under the Indenture at any time by the Company and the
Trustee with the consent of the Holders of a majority 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 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.

     As provided in and subject to the provisions of the Indenture, the Holder of this Security
shall not have the right to institute any proceeding with respect to the Indenture or for the
appointment of a receiver or trustee or for any other remedy thereunder, unless such Holder shall
have previously given the Trustee written notice of a continuing Event of Default with respect to
the Securities of this series, the Holders of not less than 25% in principal amount of the
Securities of this series at the time Outstanding shall have made written request to the Trustee to
institute proceedings in respect of such Event of Default as Trustee and offered the Trustee
reasonable indemnity and the Trustee shall not have received from the Holders of a majority in
principal amount of Securities of this series at the time Outstanding a direction inconsistent with
such request, and shall have failed to institute any such proceeding, for 60 days after receipt of
such notice, request and offer of indemnity. The foregoing shall not apply to any suit instituted
by the Holder of this Security for the enforcement of any payment of principal hereof or any
premium or interest hereon on or after the respective due dates expressed herein.

     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 $1,000 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 or the Security Registrar may require payment of a sum sufficient to cover any tax or other
governmental charge payable in connection therewith.

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

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

ARTICLE 3

THE SECURITIES 

     Section 3.1 Amount Unlimited; Issuable in Series.

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

- 16 -

 

     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 3.3, 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 2.3, 3.4, 3.5, 3.6, 9.6 or 11.7
and except for any Securities which, pursuant to Section 3.3, 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 and premium, if any, on any Securities of the
series is payable or the method of determination and/or extension of such date or dates; and the
amount or amounts of such payments of principal and premium, if any, or the method of determination
thereof;

          (5) the rate or rates (which may be fixed or variable), at which any Securities of the series
shall bear interest, if any, whether and under what circumstances Additional Amounts with respect
to such Securities shall be payable, the date or dates from which any such interest shall accrue,
the Interest Payment Dates on which any such interest shall be payable and, if other that as set
forth in Section 1.1, the Regular Record Date for any such interest payable on any Interest
Payment Date (or the method for determining the dates and rates);

          (6) whether any of such Securities will be subject to certain optional interest rate reset
provisions;

          (7) the place or places where the principal of and any premium and interest on, or any
Additional Amounts with respect to, the Securities of the series shall be payable, where the
Securities of such 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 such series and this
Indenture may be served, and the method of such payment, if by wire transfer, mail or other means;

          (8) (a) the period or periods within which, the price or prices at which, the currency or
currencies (including currency units) and the terms and conditions upon which any Securities of the
series may be redeemed, in whole or in part, at the option of the Company, (b) if other than as
provided in Section 11.3, the manner in which the particular Securities of such series (if
less than all Securities of such series are to be redeemed) are to be selected for redemption and
(c) if other than by a Board Resolution, the manner in which any election by the Company to redeem
the Securities shall be evidenced;

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

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

          (11) if other than the Trustee, the identity of the Securities Registrar and/or the Paying
Agent;

          (12) if the amount of principal of or any premium or interest on or other payments, if any, on
any Securities of the series may be determined with reference to an index, formula or other method
(which index, formula or method may be based, without limitation, on the price of one or more
commodities, derivatives or securities; one or more securities, derivatives or commodities exchange
indices or other indices; a currency or currencies (including currency unit or units) other than
that in which the Securities of the series are denominated or designated to be payable; or any
other variable or the relationship between any variables or combination of variables), the index,
formula or other method by which such amounts shall be determined;

- 17 -

 

          (13) if other than the currency of the United States of America, the currency, currencies or
currency units (including composite currencies) in which the principal of or any premium or
interest on, or any Additional Amounts with respect to, any Securities of the series shall be
payable and the manner of determining the equivalent thereof in the currency of the United States
of America for any purpose, including for purposes of the definition of “Outstanding” in
Section 1.1;

          (14) if the principal of or any premium or interest on, or any Additional Amounts with respect
to, any Securities of the series is to be payable, at the election of the Company or the Holder
thereof, in one or more currencies or currency units other than that or those in which such
Securities are stated to be payable, the currency, 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);

          (15) if other than the entire principal amount thereof, the portion of the principal amount of
any Securities of the series which shall be payable upon declaration of acceleration of the
Maturity thereof pursuant to Section 5.2;

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

          (17) if applicable, that the Securities of the series, in whole or any specified part, shall
be defeasible pursuant to Section 13.2 or Section 13.3 or both such Sections, or
any other defeasance provisions applicable to any Securities of the series, and, if other than by a
Board Resolution, the manner in which any election by the Company to defease such Securities shall
be evidenced;

          (18) the terms, if any, upon which Securities of the series may be convertible into or
exchanged for other Securities, Common Shares, Preferred Shares, other debt securities, warrants to
purchase any of the foregoing, or other securities of any kind of the Company or any other obligor
or any other property, and the terms and conditions upon which the conversion or exchange shall be
effected, including the initial conversion or exchange price or rate, the conversion or exchange
period, and any other additional provisions;

          (19) if applicable, that any Securities of the series shall be issuable in whole or in part in
the form of one or more Global Securities and, in such case, the respective Depositaries for such
Global Securities, the form of any legend or legends which shall be borne by any such Global
Security in addition to or in lieu of that set forth in Section 2.4;

          (20) any deletions, modifications of or additions to the definitions set forth in Section
1.1, the Events of Default which apply to any Securities of the series and any change in the
right of the Trustee or the requisite Holders of such Securities to declare the principal amount
thereof due and payable pursuant to Section 5.2;

          (21) any addition to, deletion of or change in the covenants set forth in Article 10
which applies to Securities of the series;

          (22) any Authenticating Agents, Paying Agents, Security Registrars or such other agents
necessary in connection with the issuance of the Securities of such series, including, without
limitation, exchange rate agents and calculation agents;

          (23) if applicable, the terms of any Mortgage that will be provided for a series of
Securities, including any provisions regarding the circumstances under which collateral may be
released or substituted;

          (24) if applicable, the terms of any guaranties for the Securities, including the terms of any
subordination of such guaranties, and any circumstances under which there may be additional
obligors on the Securities;

          (25) provisions, if any, granting special rights to the Holders of Securities of the series
upon the occurrence of such events as may be specified;

          (26) whether Securities of the series shall be issuable in registered form or bearer form
(registrable or not registrable as to principal, and with or without interest coupons), or both,
and any restrictions applicable to the offering, sale or delivery of bearer

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securities and the terms upon which bearer Securities of a series may be exchanged for registered
Securities of the same series and vice versa;

          (27) the forms of the Securities of the series;

          (28) any terms which may be related to warrants, options or other rights to purchase and sell
securities issued by the Company in connection with, or for the purchase of, Securities of such
series, including whether and under what circumstances the Securities of any series may be used
toward the exercise price of any such warrants, options or other rights;

          (29) if the Securities of the series will be governed by, and the extent to which such
Securities will be governed by, any law other than the laws of the state of New York;

          (30) any other terms of the series (which terms shall not be inconsistent with the provisions
of this Indenture, except as permitted by Section 9.1(5)).

     All Securities of any one series need not be identical but may vary as may be provided in or
pursuant to the Board Resolution referred to above and (subject to Section 3.3) set forth,
or determined in the manner provided, in the Officers’ Certificate referred to above or in any such
indenture supplemental hereto. All Securities of any one series need not be issued at the same time
and, unless otherwise provided, a series may be reopened, without the consent of the Holders, for
issuances of additional Securities of such series.

     Section 3.2 Denominations.

     Except as specified as contemplated by Section 3.1, the Securities of each series
shall be issuable only in registered form without coupons. The Securities of such series shall be
issuable only in such denominations as shall be specified as contemplated by Section 3.1.
In the absence of any such specified denomination 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. Unless otherwise provided as contemplated by Section 3.1 with respect to any
series of Securities, any Securities of a series denominated in a currency other than Dollars shall
be issuable in denominations that are the equivalent, as determined by the Company by reference to
the noon buying rate in The City of New York for cable transfers for such currency (“Exchange
Rate”), as such rate is reported or otherwise made available by the Federal Reserve Bank of New
York, on the applicable issue date for such Securities, of $1,000 and any integral multiple
thereof.

     Section 3.3 Execution, Authentication, Delivery and Dating.

     The Securities shall be executed on behalf of the Company by its Chairman of the Board, its
Chief Executive Officer, its principal financial officer, its President or one of its Vice
Presidents, and attested by its Treasurer, its Secretary or one of its Assistant Treasurers or
Assistant Secretaries. The signature of any of these officers on the Securities may be manual or
facsimile. Securities bearing the manual or facsimile signatures of individuals who were at any
time the proper officers of the Company shall bind the Company, notwithstanding that such
individuals or any of them have ceased to hold such offices prior to the authentication and
delivery of such Securities or did not hold such offices at the date of such Securities.

     At any time and from time to time after the execution and delivery of this Indenture, the
Company may deliver Securities of any series executed by the Company to the Trustee for
authentication, together with a Company Order for the authentication and delivery of such
Securities, and the Trustee in accordance with the Company Order shall authenticate and deliver
such Securities; provided, however, that in the case of Securities offered in a Periodic Offering,
the Trustee shall authenticate and deliver such Securities from time to time in accordance with
such other procedures (including, without limitation, the receipt by the Trustee of oral or
electronic instructions from the Company or its duly authorized agents, promptly confirmed in
writing) acceptable to the Trustee as may be specified by or pursuant to a Company Order delivered
to the Trustee prior to the time of the first authentication of Securities of such series. Each
Security shall be dated the date of its authentication unless otherwise provided by a Board
Resolution, a supplemental indenture hereto or an Officers’ Certificate. If the form or terms of
the Securities of the series have been established by or pursuant to one or more Board Resolutions
or any other method permitted by Sections 2.1 and 3.1, 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 6.1) shall be
fully protected in relying upon, a copy of such Board Resolution, the Officers’ Certificate setting
forth the terms of the series and an Opinion of Counsel, with such Opinion of Counsel stating,

          (1) if the form or terms of such Securities have been established by or pursuant to Board
Resolution or any other method permitted by Sections 2.1 and 3.1, that such form or
terms have been, or in the case of Securities of a series offered in a Periodic

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Offering will be, established in conformity with the provisions of this Indenture, subject in the
case of Securities offered in a Periodic Offering, to any conditions specified in such Opinion of
Counsel; and

          (2) that such Securities, when authenticated and delivered by the Trustee and issued by the
Company in the manner and subject to any conditions, exceptions and qualifications specified in
such Opinion of Counsel, will constitute legal, valid and binding obligations of the Company,
enforceable in accordance with their terms, except as such enforcement is subject to the effect of
(i) bankruptcy, insolvency, fraudulent conveyance, reorganization or other laws relating to or
affecting creditors’ rights and (ii) general principles of equity (regardless of whether such
enforcement is considered in a proceeding in equity or at law).

     Such Opinion of Counsel need express no opinion as to the enforceability of Section
6.7 or as to whether a court in the United States would render a money judgment in a currency
other than that of the United States. Notwithstanding the provisions of Section 3.1 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 3.1 or the Company Order and Opinion of Counsel otherwise required pursuant to such
preceding paragraph at or prior to the authentication of each Security of such series if such
documents are delivered at or prior to the authentication upon original issuance of the first
Security of such series to be issued.

     Notwithstanding that such form or terms have been so established, the Trustee shall have the
right to decline to authenticate such Securities if, in the written opinion of counsel to the
Trustee (which counsel may be an employee of the Trustee), such action may not lawfully be taken or
if the Trustee in good faith by its board of trustees or trustees, executive committee or a trust
committee of directors, trustees or vice presidents shall determine that such action would expose
the Trustee to personal liability to Holders of any Securities then outstanding.

     With respect to Securities of a series offered in a Periodic Offering, the Trustee may rely,
as to the authorization by the Company of any of such Securities, the form and terms thereof and
the legality, validity, binding effect and enforceability thereof, upon the Opinion of Counsel and
the other documents delivered pursuant to Sections 2.1 and 3.1 and this Section, as
applicable, in connection with the first authentication of Securities of such series.

     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 or an Authenticating Agent by manual
signature, and such certificate upon any Security shall be conclusive evidence, and the only
evidence, that such Security has been duly authenticated and delivered hereunder. Notwithstanding
the foregoing, if any Security shall have been authenticated and delivered hereunder but never
issued and sold by the Company, and the Company shall deliver such Security to the Trustee for
cancellation as provided in Section 3.9, 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.

     The Company in issuing Securities may use “CUSIP” numbers (if then generally in use), and if
so, the Trustee may use the CUSIP numbers in notices of redemption or exchange as a convenience to
Holders; provided, however, that any such notice may state that no representation is made as to the
correctness or accuracy of the CUSIP number printed in the notice or on the Securities, that
reliance may be placed only on the other identification numbers printed on the Securities, and any
such redemption or exchange shall not be affected by any defect or omission of such CUSIP numbers.
The Company will promptly notify the Trustee of any change in CUSIP numbers known to an Officer of
the Company. Neither the Company nor the Trustee shall have any responsibility for any defect in
the CUSIP number that appears on any Security, check, advice of payment or redemption notice, and
any such document may contain a statement to the effect that CUSIP numbers have been assigned by an
independent service for convenience of reference and that neither the Company nor the Trustee shall
be liable for any inaccuracy in such numbers.

     Section 3.4 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. All or any portion of the temporary Securities of a series may be Global Securities.

     If temporary Securities of any series are issued, the Company will cause definitive Securities
of that series to be prepared without unreasonable delay. Except in the case of temporary
Securities that are Global Securities, each of which shall be exchanged in accordance with the
provisions thereof, after the preparation of definitive Securities of such series, the temporary
Securities of such

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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 one or more definitive Securities of the same series, of any
authorized denominations and of like tenor and aggregate principal amount. Until so exchanged, the
temporary Securities of any series shall in all respects be entitled to the same benefits under
this Indenture as definitive Securities of such series and tenor, except as otherwise specified as
contemplated by Section 3.1.

     Section 3.5 Registration; Registration of Transfer and Exchange.

     The Company shall cause to be kept at the Corporate Trust Office of the Trustee or in any
office or agency to be maintained by the Company in accordance with Section 9.2 in a Place
of Payment or in such other place or medium as may be specified pursuant to Section 3.1 a
register for each series of Securities (each register maintained in such office and in any other
office or agency of the Company in a Place of Payment being herein sometimes referred to as the
“Security Register”) in which, subject to such reasonable regulations as it may prescribe,
the Company shall provide for the registration of Securities of such series and of transfers of
Securities of such series. Unless otherwise contemplated by Section 3.1, the Trustee is
hereby appointed “Security Registrar” for the purpose of registering Securities and
transfers of Securities, and for the purpose of maintaining the Security Register in respect
thereof, as herein provided.

     Except as set forth in Section 2.3 or as may be provided pursuant to Section
3.1, upon surrender for registration of transfer of any Security of a series at the office or
agency of the Company in a Place of Payment for that series, the Company shall execute and deliver
a Company Order requesting the Trustee to authenticate and deliver, 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 like tenor and aggregate
principal amount.

     Unless otherwise provided as contemplated by Section 3.1, at the option of the Holder,
Securities of any series (other than Global Securities) may be exchanged for other Securities of
the same series, of any authorized denominations and of like tenor and aggregate principal amount,
upon surrender of the Securities to be exchanged at such office or agency, and upon payment, if the
Company shall so require, of the charges hereinafter provided. Whenever any Securities are so
surrendered for exchange, the Company shall execute, and the Trustee shall authenticate and
deliver, the Securities that 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, Security Registrar or the Trustee) be duly endorsed, or be accompanied
by a written instrument of transfer in form satisfactory to the Company, the Security Registrar or
the Trustee, as the case may be, duly executed, by the Holder thereof or its attorney duly
authorized in writing.

     Unless otherwise provided as contemplated by Section 3.1, 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 3.4, 9.6 or
11.7 not involving any transfer.

     Unless otherwise provided as contemplated by Section 3.1, if the Securities of any
series (or of any series and specified tenor) are to be redeemed in whole or in part, the Company
shall not be required (A) to issue, register the transfer of or exchange any Securities of that
series (or of that series and specified tenor, as the case may be) during a period beginning at the
opening of business 15 days before the day of the mailing of a notice of redemption of any such
Securities selected for redemption under Section 11.3 and ending at the close of business
on the day of such mailing, or (B) 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.

     Unless otherwise provided as contemplated by Section 3.1, the Company shall not be
required to register the transfer or exchange of Securities between a Record Date and the next
succeeding Interest Payment Date.

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     Section 3.6 Mutilated, Destroyed, Lost and Stolen Securities.

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

     Notwithstanding the preceding paragraph, 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 3.6, 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 3.6 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 3.6 are exclusive and shall preclude (to the extent
lawful) all other rights and remedies with respect to the replacement or payment of mutilated,
destroyed, lost or stolen Securities.

     Section 3.7 Payment of Interest; Interest Rights Preserved.

     Except as otherwise provided as contemplated by Section 3.1 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 at the office or agency maintained for such purpose pursuant to Section
9.2; provided, however, that at the option of the Company, interest on any series of Registered
Securities that bear interest may be paid (i) by check mailed to the address of the Person entitled
thereto as it shall appear on the Security Register of such series (unless, with respect to a
Global Security, the rules of the Depositary require payment of such amount by wire transfer) or
(ii) by wire transfer to an account maintained by the Person entitled thereto as specified in the
Security Register of such series.

     Unless otherwise provided as contemplated by Section 3.1, 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 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 given to each Holder of Securities of such series in the manner set forth in
Section 1.7, not less than 10 days prior to such Special Record Date. The Trustee may, in
its discretion, in the name and at the expense of the Company, cause a similar notice to be
published at least once in an Authorized Newspaper, but such publication shall not be a condition
precedent to the establishment of such Special Record Date. Notice of the proposed payment of such
Defaulted Interest and the Special Record Date

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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 3.7, 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 3.8 Persons Deemed Owners.

     Prior to due presentment of a Security for registration of transfer, the Company, the Trustee
and any agent of the Company or the Trustee may treat the Person in whose name such Security is
registered as the owner of such Security for the purpose of receiving payment of principal of and
any premium and (subject to Section 3.7) any interest and any Additional Amounts or other
payments on such Security and for all other purposes whatsoever, whether or not such Security shall
be overdue, and none of the Company, the Trustee or any agent of the Company or the Trustee shall
be affected by notice to the contrary.

     Except as otherwise specified as contemplated by Section 3.1, none of the Company, the
Trustee or any agent of the Company or the Trustee shall have any responsibility or liability for
any aspect of the records relating to or payments made on account of beneficial ownership interests
of a Global Security, or for maintaining, supervising or reviewing any records relating to such
beneficial ownership interests. Notwithstanding the foregoing, with respect to any Global Security,
nothing herein shall prevent the Company or the Trustee, or any agent of the Company or the
Trustee, from giving effect to any written certification, proxy or other authorization furnished by
any Depositary (or its nominee), as a Holder, with respect to such Global Security or impair, as
between such Depositary and owners of beneficial interests in such Global Security, the operation
of customary practices governing the exercise of the rights of such Depositary (or its nominee) as
Holder of such Global Security.

     Section 3.9 Cancellation.

     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 canceled by the Trustee. The Security
Registrar and the Paying Agent shall forward to the Trustee any Securities surrendered to them for
registration of transfer, exchange or payment, and all Securities so delivered shall be promptly
canceled by the Trustee. No Securities shall be authenticated in lieu of or in exchange for any
Securities canceled as provided in this Section, except as expressly permitted by this Indenture or
as otherwise specified as contemplated by Section 3.1. On request of the Company at the
time of surrender, the Trustee shall deliver to the Company canceled Securities held by the
Trustee. In the absence of such request, all canceled Securities held by the Trustee shall be
disposed of in accordance with the Trustee’s customary procedures.

     Section 3.10 Computation of Interest.

     Except as otherwise specified as contemplated by Section 3.1 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 4

SATISFACTION AND DISCHARGE 

     Section 4.1 Satisfaction and Discharge of Indenture.

     This Indenture shall upon Company Request cease to be of further effect with respect to
Securities of or within any series (except as to any surviving rights of registration of transfer
or exchange of such Securities and replacement of such Securities which may have

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been lost, stolen or mutilated as herein expressly provided for), and the Trustee, at the expense
of the Company, shall execute proper instruments acknowledging satisfaction and discharge of this
Indenture with respect to such Securities, when

          (1) either

               (A) all such 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 3.6 and (ii) Securities for whose payment money has theretofore been deposited in
trust or segregated and held in trust by the Trustee or the Company and thereafter repaid to the
Company or discharged from such trust, as provided in Section 10.3) 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 clause (i), (ii) or (iii) above, has
deposited or caused to be deposited with the Trustee as trust funds in trust for the purpose money
in an amount sufficient to pay and discharge the entire indebtedness on such Securities not
theretofore delivered to the Trustee for cancellation, for principal and any premium and interest
and any Additional Amounts to the date of such deposit (in the case of Securities which have become
due and payable) or to the Stated Maturity or Redemption Date, as the case may be;

          (2) the Company has paid or caused to be paid all other sums payable hereunder by the Company
with respect to the Outstanding Securities of such series;

          (3) the Company has complied with any other conditions specified pursuant to Section
3.1 to be applicable to the Outstanding Securities of such series; and

          (4) 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 as to such Securities have been complied with.

     If any Outstanding Securities of such series are to be redeemed prior to their Stated
Maturity, whether pursuant to any optional redemption provisions or in accordance with any
mandatory sinking fund requirement, the trust agreement evidencing the trust referred to in
subclause (B) of clause (1) of this Section 4.1 shall provide therefore and
the Company shall make such arrangements as are satisfactory to the Trustee for the giving of
notice of redemption by the Trustee in the name, and at the expense, of the Company.

     Notwithstanding the satisfaction and discharge of this Indenture, the obligations of the
Company to the Trustee under Section 6.7, the obligations of the Trustee to any
Authenticating Agent under Section 6.14 and, if money shall have been deposited with the
Trustee pursuant to subclause (B) of clause (1) of this Section 4.1, the
obligations of the Trustee under Section 4.2 and the last paragraph of Section 10.3
shall survive.

     Section 4.2 Application of Trust Money.

     Subject to the provisions of the last paragraph of Section 10.3, all money deposited
with the Trustee pursuant to Section 4.1 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 any premium and
interest or Additional Amounts for whose payment such money has been deposited with the Trustee.

     Section 4.3 Reinstatement.

     If the Trustee or Paying Agent is unable to apply any money or U.S. Government Obligations
deposited with respect to Securities of any series in accordance with Section 4.1 by reason
of any legal proceeding or by reason of any order or judgment of any court or

- 24 -

 

governmental authority enjoining, restraining or otherwise prohibiting such application, the
Company’s obligations under this Indenture with respect to the Securities of such series and the
Securities of such series shall be revived and reinstated as though no deposit had occurred
pursuant to Section 4.1 until such time as the Trustee or Paying Agent is permitted to
apply all such money or U.S. Government Obligations in accordance with Section 4.1;
provided, however, that if the Company has made any payment of principal of, premium (if any) or
interest on, or any Additional Amounts with respect to, any Securities because of 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 or U.S. Government Obligations held by the Trustee or Paying
Agent.

ARTICLE 5

REMEDIES 

     Section 5.1 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 Default and whether it
shall be occasioned by the subordination provisions applicable to any Securities or be voluntary or
involuntary or be effected by operation of law or pursuant to any judgment, decree or order of any
court or any order, rule or regulation of any administrative or governmental body), unless it is
either inapplicable to a particular series or it is specifically deleted or modified in the Board
Resolution, supplemental indenture, Officers’ Certificate establishing such series, or form of
Security for such series:

          (1) default in the payment of any interest on, or any Additional Amounts with respect to, any
Security of that series when it becomes due and payable, and continuance of such default for a
period of 30 days (unless the entire amount of such payment is deposited by the Company with the
Trustee or with a Paying Agent prior to the expiration of such period of 30 days); or

          (2) default in the payment of the principal of or any premium 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, and continuance of such default for a period of 30 days; 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 5.1 specifically dealt with or which has expressly been included
in this Indenture solely for the benefit of series of Securities other than that series), and
continuance of such default or breach for a period of 60 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, 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
60 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

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          (7) any other Event of Default provided with respect to Securities of that series in the Board
Resolution, supplemental indenture or Officers’ Certificate establishing that series.

     Notwithstanding the foregoing provisions of this Section 5.1, if the principal of,
premium (if any) or any interest on, or any Additional Amounts with respect to, any Security is
payable in a currency or currencies (including a composite currency) other than Dollars and such
currency or currencies are not available to the Company for making payment thereof due to the
imposition of exchange controls or other circumstances beyond the control of the Company (a
“Conversion Event”), the Company will be entitled to satisfy its obligations to Holders of
the Securities by making such payment in Dollars in an amount equal to the Dollar equivalent of the
amount payable in such other currency, as determined by the Company by reference to the Exchange
Rate, as such Exchange Rate is certified for customs purposes by the Federal Reserve Bank of New
York on the date of such payment, or, if such rate is not then available, on the basis of the most
recently available Exchange Rate. Notwithstanding the foregoing provisions of this Section
5.1, any payment made under such circumstances in Dollars where the required payment is in a
currency other than Dollars will not constitute an Event of Default under this Indenture.

     Promptly after the occurrence of a Conversion Event with respect to the Securities of any
series, the Company shall give written notice thereof to the Trustee; and the Trustee, promptly
after receipt of such notice, shall give notice thereof in the manner provided in Section
1.7 to the Holders of such series. Promptly after the making of any payment in Dollars as a
result of a Conversion Event with respect to the Securities of any series, the Company shall give
notice in the manner provided in Section 1.7 to the Holders of such series, setting forth
the applicable Exchange Rate and describing the calculation of such payments.

     Section 5.2 Acceleration of Maturity; Rescission and Annulment.

     Unless the Board Resolution, supplemental indenture or Officers’ Certificate establishing such
series provides otherwise, if an Event of Default (other than an Event of Default specified in
Section 5.1(5) or 5.1(6)) with respect to Securities of any series at the time
Outstanding occurs and is continuing, then in every such case the Trustee or the Holders of not
less than 25% in principal amount of the Outstanding Securities of that series may declare the
principal amount of all the Securities of that series (or, if any Securities of that series are
Original Issue Discount Securities, such portion of the principal amount of such Securities as may
be specified by the terms thereof) and premium, if any, together with accrued and unpaid interest,
if any, thereon, and Additional Amounts, if any, with respect thereto, to be due and payable
immediately, by a notice in writing to the Company (and to the Trustee if given by the Holders),
and upon any such declaration such principal amount (or specified amount) and premium, if any,
together with accrued and unpaid interest, if any, thereon, and Additional Amounts, if any, with
respect thereto, shall become immediately due and payable. Unless the Board Resolution,
supplemental indenture or Officers’ Certificate establishing such series provides otherwise, if an
Event of Default specified in Section 5.1(5) or 5.1(6) with respect to Securities
of any series at the time Outstanding occurs, the principal amount of all the Securities of that
series (or, if any Securities of that series are Original Issue Discount Securities, such portion
of the principal amount of such Securities as may be specified by the terms thereof) and premium,
if any, together with accrued and unpaid interest, if any, thereon, and Additional Amounts, if any,
with respect thereto, shall automatically, and without any declaration or other action on the part
of the Trustee or any Holder, become immediately due and payable.

     At any time after such a declaration of acceleration with respect to Securities of any series
has been made and before a judgment or decree for payment of the money due has been obtained by the
Trustee as hereinafter in this Article 5 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, and any Additional Amounts with respect to, all Securities of
that series (or of all series, as the case may be),

               (B) the principal of or premium (if any) on any Securities of that series (or of all series,
as the case may be) which have become due otherwise than by such declaration of acceleration and
interest thereon at the rate or rates prescribed therefor in such Securities (in the case of
Original Issue Discount Securities, the Securities’ Yield to Maturity),

               (C) to the extent that payment of such interest is lawful, interest upon overdue interest and
any Additional Amounts at the rate or rates prescribed therefor in such Securities (in the case of
Original Issue Discount Securities, the Securities’ Yield to Maturity), and

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               (D) all sums paid or advanced by the Trustee hereunder, the compensation, expenses,
disbursements and advances due to Trustee under Section 6.7, and all other amounts due
under Section 6.7;

          (2) all Events of Default with respect to Securities of that series (or of all series, as the
case may be), other than the nonpayment of the principal of Securities of that series (or of all
series, as the case may be) which have become due solely by such declaration of acceleration, have
been cured or waived as provided in Section 5.13; and

          (3) the rescission would not conflict with any final judgment or decree of a court of
competent jurisdiction.

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

     Section 5.3 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, or any Additional Amounts with respect
to, any Security of any series when such interest or Additional Amounts shall become due and
payable and such default continues for a period of 30 days, or

          (2) default is made in the payment of the principal of (or 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 any premium
and interest on, and Additional Amounts with respect to, and, to the extent that payment of such
interest shall be legally enforceable, interest on any overdue principal and premium and on any
overdue interest or Additional Amounts, at the rate or rates prescribed therefor in such Securities
(or in the case of Original Issue Discount Securities, the Securities’ Yield to Maturity), 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, and all other amounts due the Trustee under Section 6.7.

     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 deemed 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.

     In addition, if any other Event of Default with respect to Securities of any series occurs and
is continuing, the Trustee may in its discretion proceed, in its own name and as trustee of an
express trust, 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 5.4 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 upon the Securities or the property of the Company or of such other
obligor or their creditors, the Trustee (irrespective of whether the principal (or lesser amount in
the case of Original Issue Discount Securities) 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 of, premium (if any), interest
on, or any Additional Amounts with respect to, such Securities) shall be entitled and empowered, by
intervention in such proceeding or otherwise,

          (1) to file and prove a claim for the whole amount of principal (or lesser amount in the case
of Original Issue Discount Securities) (and premium, if any) and interest and any Additional
Amounts owing and unpaid in respect of the Securities and to file such other papers or documents as
may be necessary or advisable 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

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          (2) to collect and receive any monies 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 6.7.

     No provision of this Indenture shall be deemed to authorize the Trustee to authorize or
consent to or accept or adopt on behalf of any Holder any plan of reorganization, arrangement,
adjustment or composition affecting the Securities or the rights of any Holder thereof or to
authorize the Trustee to vote in respect of the claim of any Holder in any such proceeding;
provided, however, that the Trustee may, on behalf of the Holders, vote for the election of a
trustee in bankruptcy or similar official and be a member of a creditors’ or other similar
committee.

     Section 5.5 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 may be instituted by the Trustee in its
own name as trustee of an express trust.

     Section 5.6 Application of Money Collected.

     Subject to the subordination provisions applicable to any series of Securities, any money
collected by the Trustee pursuant to this Article shall be applied and paid 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 any premium or interest on, or any Additional Amounts with respect to, the
Securities, 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 6.7 in connection
with such series of Securities in respect of which money or other property is collected;

     SECOND: Subject to the terms of any subordination entered into as contemplated by Section
3.1, to the payment of the amounts then due and unpaid for principal of and any premium, if
any, and interest on, and any Additional Amounts with respect to, 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
any premium, if any, interest on and Additional Amounts, respectively; and

     THIRD: The balance, if any, to the Company or any other Person or Persons entitled thereto.

     To the fullest extent allowed under applicable law, if for the purpose of obtaining judgment
against the Company in any court it is necessary to convert the sum due in respect of the principal
of, premium (if any) or interest on, or any Additional Amounts with respect to, the Securities of
any series (the “Required Currency”) into a currency in which a judgment will be rendered
(the “Judgment Currency”), the rate of exchange used shall be the rate at which in
accordance with normal banking procedures the Trustee could purchase in The City of New York the
Required Currency with the Judgment Currency on the Business Day in The City of New York next
preceding that on which final judgment is given. Neither the Company nor the Trustee shall be
liable for any shortfall nor shall any of them benefit from any windfall in payments to Holders of
Securities under this Section 5.6 caused by a change in exchange rates between the time the
amount of a judgment against it is calculated as above and the time the Trustee converts the
Judgment Currency into the Required Currency to make payments under this Section 5.6 to
Holders of Securities, but payment of such judgment shall discharge all amounts owed by the Company
on the claim or claims underlying such judgment.

     Section 5.7 Limitation on Suits.

     Subject to Section 5.8, no Holder of any Security of any series shall have any right
to institute any proceeding, judicial or otherwise, with respect to this Indenture, or for the
appointment of a receiver or trustee, or for any other remedy hereunder, unless

          (1) an Event of Default with respect to such series of Securities shall have occurred and be
continuing and such Holder has previously given written notice to the Trustee of such continuing
Event of Default;

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          (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 and, if requested, provided to the Trustee reasonable
indemnity against the costs, expenses and liabilities to be incurred in compliance with such
request;

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

          (5) no direction inconsistent with such written request has been given to the Trustee during
such 60-day period by the Holders of a majority in principal amount of the Outstanding Securities
of that series (or of all series, as the case may be). 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 5.8 Right of Holders to Receive Principal, Premium and Interest.

     Notwithstanding any other provision in this Indenture, the right of any Holder of any Security
to receive payment of the principal of and any premium and (subject to Section 3.7)
interest on, or any Additional Amounts with respect to, such Security on the Stated Maturity or
Stated 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 after the respective due dates,
shall not be impaired without the consent of such Holder.

     Section 5.9 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 5.10 Rights and Remedies Cumulative.

     Except as otherwise provided in Section 5.7 or with respect to the replacement or
payment of mutilated, destroyed, lost or stolen Securities in the last paragraph of Section
3.6, 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 5.11 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 5 or by law to the Trustee or to the Holders may be exercised from time to
time, and as often as may be deemed expedient, by the Trustee or by the Holders, as the case may
be.

     Section 5.12 Control by Holders.

     With respect to Securities of any series, the Holders of a majority in principal amount of the
Outstanding Securities of such 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, relating to or arising under an Event of Default described in clause
(1), (2), (3), (4) or (7) of Section 5.1, and with
respect to all Securities the Holders of a majority in principal amount of all Outstanding
Securities shall have the right to direct the time, method and place of conducting any remedy
available to the Trustee, or exercising any trust or power conferred on the Trustee, relating to or
arising under an Event of Default described in clause (5) or (6) of Section
5.1, provided that in each such case.

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          (1) the Trustee shall have the right to decline to follow any such direction if the Trustee,
being advised by counsel, determines that the action so directed may not lawfully be taken or would
conflict with this Indenture or if the Trustee in good faith shall, by a Responsible Officer,
determine that the proceedings so directed would involve it in personal liability or be unjustly
prejudicial to the Holders not taking part in such direction, and

          (2) the Trustee may take any other action deemed proper by the Trustee that is not
inconsistent with such direction or this Indenture.

     Section 5.13 Waiver of Past Defaults.

     Subject to Section 5.8 and Section 9.2, the Holders of not less than a
majority in aggregate principal amount of the Outstanding Securities of any series may on behalf of
the Holders of all the Securities of such series waive any past default or Event of Default
described in clause (1), (2), (3), (4) or (7) of
Section 5.1 hereunder with respect to such series and its consequences, and the Holders of
a majority in principal amount of all Outstanding Securities may on behalf of the Holders of all
Securities waive any Event of Default described in clause (5) or (6) of Section
5.1 hereunder and its consequences, except a default

          (1) in the payment of the principal of or any premium or interest on, or any Additional
Amounts with respect to, any Security as and when the same shall become due and payable by the
terms thereof, otherwise than by acceleration (unless such default has been cured as provided
herein), or

          (2) in respect of a covenant or provision hereof which under Article 9 cannot be
modified or amended without the consent of the Holder of each Outstanding Security affected.

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

     Section 5.14 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 in any suit for the enforcement of any right or remedy under
this Indenture, or in any suit against the Trustee for any action taken, suffered or omitted by it
as Trustee, a court may require any party litigant in such suit to file an undertaking to pay the
costs of such suit, and may assess costs against any such party litigant, in the manner and to the
extent provided in the Trust Indenture Act; provided that the provisions of this Section
5.14 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 interest on any Security on
or after the Stated Maturity or Stated Maturities expressed in such Security (or, in the case of
redemption, on the redemption date).

ARTICLE 6

THE TRUSTEE 

     Section 6.1 Certain Duties and Responsibilities.

          (1) If an Event of Default has occurred and is continuing, the Trustee shall exercise 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 individual would exercise or use under the circumstances in the conduct of
his or her own affairs.

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

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

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               (B) 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 Officers’
Certificates or Opinions of Counsel furnished to the Trustee and conforming to the requirements of
this Indenture; however, in the case of any such Officers’ Certificates or Opinions of Counsel
which by any provisions hereof are specifically required to be furnished to the Trustee, the
Trustee shall examine such Officers’ Certificates and Opinions of Counsel to determine whether or
not they conform to the requirements of this Indenture (but need not confirm or investigate the
accuracy of any mathematical calculations or other facts stated therein).

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

            
   (A) This paragraph does not limit the effect of clause (2) of this Section
6.1.

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

           
    (C) The Trustee shall not be liable with respect to any action taken, suffered or omitted to
be taken by it with respect to Securities of any series in good faith in accordance with the
direction of the Holders of a majority in principal amount of the Outstanding Securities of such
series relating to the time, method and place of conducting any proceeding for any remedy available
to the Trustee, or exercising any trust or power conferred upon the Trustee, under this Indenture
with respect to the Securities of such series.

          (4) Every provision of this Indenture that in any way relates to the Trustee is subject to
clauses (1), (2) and (3) of this Section 6.1.

          (5) The Trustee may refuse to perform any duty or to exercise any of the rights or powers
vested in it by this Indenture at the request or direction of any of Holder or Holders pursuant to
this Indenture, unless such Holder or Holders shall have offered and, if requested, provided 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.

          (6) No provision of this Indenture shall require the Trustee to risk its own funds or
otherwise incur any financial liability in the performance of any of its duties, 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 is not reasonably assured to it.

          (7) The Paying Agent, the Security Registrar and any Authenticating Agent shall be entitled to
the protections, immunities and standard of care as are set forth in clauses (1),
(2) and (3) of this Section 6.1 with respect to the Trustee.

     Section 6.2 Notice of Defaults.

     If a default occurs hereunder and is continuing with respect to Securities of any series and
it is known to a Responsible Officer of the Trustee, the Trustee shall give the Holders of
Securities of such series notice of such default as and to the extent provided by the Trust
Indenture Act; provided, however, that except in the case of a default in the payment of principal
of (or premium, if any) or interest on, or any Additional Amounts with respect to, any Securities
of such series or in the payment of any sinking fund installment, the Trustee shall be protected in
withholding such notice if and so long as the Board of Trustees, the executive committee or a trust
committee of directors and/or Responsible Officers of the Trustee in good faith determine that the
withholding of such notice is in the interests of the holders of Securities of such series.

     Section 6.3 Certain Rights of Trustee.

     Subject to the provisions of Section 6.1:

          (1) in the absence of bad faith on the part of the Trustee, the Trustee may rely and shall be
protected in acting or refraining from acting upon any resolution, certificate, statement,
instrument, opinion, report, notice, request, direction, consent, order, bond, debenture, note,
coupon, 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;

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          (2) 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;

          (3) any request or direction of the Company mentioned herein shall be sufficiently evidenced
by a Company Request or Company Order (unless other evidence is specifically required herein), and
any resolution of the Board of Trustees shall be sufficiently evidenced by a Board Resolution;

          (4) 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), in the absence of bad faith on
its part, is entitled to and may rely upon an Officers’ Certificate;

          (5) 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;

          (6) 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.

          (7) the Trustee shall not be charged with knowledge of any default or Event of Default with
respect to the Securities of any series for which it is acting as Trustee 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
any other obligor on such Securities or by any Holder of such Securities; and

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

     Section 6.4 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 neither the Trustee nor any
Security Registrar, Paying Agent or Authenticating Agent assumes any responsibility for their
correctness. The Trustee makes no representations as to the validity or sufficiency of this
Indenture or of the Securities. Neither the Trustee nor any Security Registrar, Paying Agent or
Authenticating Agent shall be accountable for the use or application by the Company of Securities
or the proceeds thereof.

     Section 6.5 May Hold Securities and Act as Trustee under Other Indentures.

     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 6.8 and 6.13, 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.

     Subject to the limitations imposed by the Trust Indenture Act, nothing in this Indenture shall
prohibit the Trustee from becoming and acting as trustee under other indentures under which other
securities, or certificates of interest of participation in other securities, of the Company are
outstanding in the same manner as if it were not Trustee hereunder.

     Section 6.6 Money Held in Trust.

     Subject to the provisions of Sections 10.3 and 13.5, all moneys received by
the Trustee shall, until used or applied, as provided herein, be held in trust for the purposes for
which they were received. 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 in writing with the
Company. So long as no Event of Default shall have occurred and be continuing, all interest allowed
on any such moneys shall be paid by the Company from time to time upon a Company Order.

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     Section 6.7 Compensation and Reimbursement.

     The Company shall pay to the Trustee from time to time such reasonable compensation for its
services as the Company and the Trustee may agree in writing from time to time. The Trustee’s
compensation shall not be limited by any law on compensation of a trustee of an express trust. The
Company shall reimburse the Trustee upon request for all reasonable out-of-pocket expenses,
disbursements and advances incurred by it in connection with the performance of its duties under
this Indenture, except any such expense, disbursement or advance as may be attributable to its
negligence, willful misconduct or bad faith. Such expenses shall include the reasonable
compensation and expenses of the Trustee’s agents and counsel.

     The Company shall indemnify the Trustee for, and hold it harmless against, any and all loss,
liability, damage, claim or expense (including attorneys’ fees and expenses, and including taxes
other than taxes based upon, measured by or determined by the income of the Trustee), including
without limitation the costs and expenses of defending itself against any third-party claim
(whether asserted by any Holder or any other Person (other than the Company to the extent of any
claim brought by it against the Trustee that establishes a breach by the Trustee in the observance
or performance of its duties under this Indenture)), incurred by it without negligence, willful
misconduct or bad faith arising out of or in connection with its acceptance or administration of
the trust or trusts hereunder, including the performance of its duties or the exercise of its
powers hereunder. With respect to any such claim other than a claim brought by the Company, (i) the
Trustee shall notify the Company promptly of any claim for which it may seek indemnity, (ii) the
Company may at its option defend the claim, in which event the Trustee shall cooperate in the
defense and the Trustee may have one separate counsel and the Company shall pay the reasonable fees
and expenses of such counsel and (iii) the Company need not pay for any settlement made without its
consent, which consent shall not be unreasonably withheld. This indemnification shall apply to
officers, directors, employees, shareholders and agents of the Trustee.

     To secure the Company’s payment obligations in this Section 6.7, the Trustee shall
have a lien prior to the Securities of any series on all money or property held or collected by the
Trustee, except that held in trust to pay principal of and interest on, or any Additional Amounts
with respect to, particular Securities of that series.

     When the Trustee incurs expenses or renders services after an Event of Default specified in
Section 5.1(5) or (6) occurs, the expenses and the compensation for the services
are intended to constitute expenses of administration under any Bankruptcy Law.

     The provisions of this Section 6.7 and any lien arising hereunder shall survive the
resignation or removal of the Trustee or the discharge of the Company’s obligations under this
Indenture and the termination of this Indenture.

     Section 6.8 Conflicting Interests.

     If the Trustee has or shall acquire a conflicting interest within the meaning of the Trust
Indenture Act, the Trustee shall either eliminate such conflicting interest or resign, to the
extent and in the manner and with the effect provided by, and subject to the provisions of, the
Trust Indenture Act and this Indenture. To the extent permitted by the Trust Indenture Act, the
Trustee shall not be deemed to have a conflicting interest by virtue of being a trustee under this
Indenture with respect to Securities of more than one series or any other indenture.

     Section 6.9 Eligibility; Disqualification.

     There shall at all times be one (and only one) Trustee hereunder with respect to the
Securities of each series (which need not be the same Trustee for all series). A Trustee may be
Trustee hereunder for Securities of one or more series. Each Trustee shall be a Person that is
eligible pursuant to the Trust Indenture Act to act as such and has (or if the Trustee is a member
of a bank holding company system, its bank holding company has) a combined capital and surplus of
at least $50,000,000 and subject to supervision or examination by federal or state (or the District
of Columbia) authority. If any such Person or bank holding company publishes reports of condition
at least annually, pursuant to law or to the requirements of its supervising or examining
authority, then for the purposes of this Section 6.9 and to the extent permitted by the
Trust Indenture Act, the combined capital and surplus of such Person or bank holding company 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 with respect to the Securities of any series
shall cease to be eligible in accordance with the provisions of this Section 6.9, it shall
resign immediately in the manner and with the effect hereinafter specified in this Article
6.

     The Indenture shall always have a Trustee who satisfies the requirements of Sections
310(a)(1), 310(a)(2) and 310(a)(5) of the Trust Indenture Act.

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     Section 6.10 Resignation and Removal; Appointment of Successor.

     No resignation or removal of the Trustee and no appointment of a successor Trustee pursuant to
this Article shall become effective until the acceptance of appointment by the successor Trustee in
accordance with the applicable requirements of Section 6.11.

     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 6.11 shall not have been delivered to the Trustee within 30
days after the giving of such notice of resignation, the resigning Trustee may petition at the
expense of the Company any court of competent jurisdiction for the appointment of a successor
Trustee with respect to the Securities of such series.

     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. If the instrument of acceptance by a successor Trustee
required by Section 6.11 shall not have been delivered to the removed Trustee within 30
days after the receipt of such notice of removal, the removed Trustee may petition at the expense
of the Company any court of competent jurisdiction for the appointment of a successor Trustee with
respect to the Securities of such series.

     If at any time:

          (1) the Trustee shall fail to comply with Section 6.8 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 6.9 and shall fail to resign
after written request therefor by the Company or by any such Holder, or

          (3) the Trustee shall become incapable of acting or shall be adjudged a bankrupt or insolvent
or a receiver of the Trustee or of its property shall be appointed or any public officer shall take
charge or control of the Trustee or of its property or affairs for the purpose of rehabilitation,
conservation or liquidation, then, in any such case, (A) the Company by a Board Resolution may
remove the Trustee with respect to all Securities, or (B) subject to Section 5.14, any
Holder who has been a bona fide Holder of a Security for at least six months may, on behalf of
himself and all others similarly situated, petition any court of competent jurisdiction for the
removal of the Trustee with respect to all Securities and the appointment of a successor Trustee or
Trustees.

     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 such successor Trustee or Trustees shall comply with the applicable requirements of
Section 6.11. 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 6.11, 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 6.11, the retiring Trustee may petition, or any Holder who has been a bona fide
Holder of a Security of such series for at least six months may petition, on behalf of himself and
all others similarly situated, any court of competent jurisdiction for the appointment of a
successor Trustee with respect to the Securities of such series.

     The Company shall give notice of each resignation and each removal of the Trustee with respect
to the Securities of any series and each appointment of a successor Trustee with respect to the
Securities of any series to all Holders of Securities of such series in the manner provided in
Section 1.7. 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 6.11 Acceptance of Appointment by Successor.

     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.

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

     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 the first or second preceding paragraph, as the case may be.

     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 6.

     Section 6.12 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 or acquiring all or substantially
all the corporate trust business of the Trustee (including the administration of the trust created
by this Indenture), 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, or by succession to or acquisition of all or substantially all of
the corporate trust business of, such successor Trustee may adopt such authentication and deliver
the Securities so authenticated with the same effect as if such successor Trustee had itself
authenticated such Securities.

     Section 6.13 Preferential Collection of Claims Against Company.

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

     Section 6.14 Appointment of Authenticating Agent.

     The Trustee may appoint an Authenticating Agent or Agents with respect to one or more series
of Securities which shall be authorized to act on behalf of the Trustee to authenticate Securities
of such series issued upon original issue and upon exchange,

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registration of transfer or partial redemption thereof or pursuant to Section 3.6, 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 be acceptable to the Company and, except as other specified as contemplated by
Section 3.1, shall at all times be a bank or trust company or 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 (or if the
Authenticating Agent is a member of a bank holding company system, its bank holding company has) a
combined capital and surplus of not less than $50,000,000 and subject to supervision or examination
by Federal or State (or the District of Columbia) authority. If such Authenticating Agent publishes
reports of condition at least annually, pursuant to law or to the requirements of said supervising
or examining authority, then for the purposes of this Section 6.14, 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 6.14,
such Authenticating Agent shall resign immediately in the manner and with the effect specified in
this Section 6.14.

     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 or acquiring 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
6.14, 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 for any series of Securities may resign at any time by giving written
notice thereof to the Trustee for such series and to the Company. The Trustee for any series of
Securities may at any time terminate the agency of an Authenticating Agent by giving written notice
thereof to such Authenticating Agent and to the Company. Upon receiving such a notice of
resignation or upon such a termination, or in case at any time such Authenticating Agent shall
cease to be eligible in accordance with the provisions of this Section, the Trustee for such series
may appoint a successor Authenticating Agent which shall be acceptable to the Company and shall
give notice of such appointment in the manner provided in Section 1.7 to all Holders of
Securities of the series with respect to which such Authenticating Agent will serve. 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 6.14.

     The Trustee agrees to pay to each Authenticating Agent from time to time reasonable
compensation for its services under this Section 6.14, and the Trustee shall be entitled to
be reimbursed for such payments, subject to the provisions of Section 6.7.

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

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

	 
	 	 	 	 	 
	 	[TRUSTEE], as Trustee

 	 
	 	By:  	 	 
	 	 	As Authenticating Agent 	 
	 
	 	By:  	 	 
	 	 	Authorized Officer 	 
	 	 	 	 
	 

     Notwithstanding any provision of this Section 6.14 to the contrary, if at any time any
Authenticating Agent appointed hereunder with respect to any series of Securities shall not also be
acting as the Security Registrar hereunder with respect to any series of Securities, then, in
addition to all other duties of an Authenticating Agent hereunder, such Authenticating Agent shall
also be obligated: (i) to furnish to the Security Registrar promptly all information necessary to
enable the Security Registrar to maintain at all times an accurate and current Security Register;
and (ii) prior to authenticating any Security denominated in a foreign currency, to

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ascertain from the Company the units of such foreign currency that are required to be determined by
the Company pursuant to Section 3.2.

ARTICLE 7

HOLDERS’ LISTS AND REPORTS BY TRUSTEE AND COMPANY 

     Section 7.1 Company to Furnish Trustee Names and Addresses of Holders.

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

          (1) not later than 15 days after the Regular Record Date for each respective series of
Securities, or if there is no Regular Record Date for such series of Securities, semi-annually on
January 1 and July 1, a list, in such form as the Trustee may reasonably require, of the names and
addresses of the Holders of Securities of each series as of such date, as the case may be, and

          (2) 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; provided that no such list need be furnished by the Company to the Trustee so long as the Trustee
is acting as Security Registrar.

     Section 7.2 Preservation of Information; Communications to Holders.

     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 7.1 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
7.1 upon receipt of a new list so furnished.

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

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

     Section 7.3 Reports by Trustee.

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

     As promptly as practicable after each January 1 beginning with the January 1 following the
date of this Indenture, and in any event prior to March 1 in each year, the Trustee shall mail to
each Holder a brief report dated as of December 31 of the prior year if and to the extent required
by Section 313(a) of the Trust Indenture Act. The Trustee shall also comply with
Section 313(b) of the Trust Indenture Act.

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

     Section 7.4 Reports by Company.

     The Company shall file with the Trustee and the Commission, and transmit to Holders and any
other required Persons within 30 days after the filing with the Trustee, such information,
documents and other reports, and such summaries thereof, as may be required pursuant to the Trust
Indenture Act at the times and in the manner provided pursuant to the Trust Indenture Act; provided
that any such information, documents or reports required to be filed with the Commission pursuant
to Section 13 or 15(d) of the Exchange Act shall be filed with the Trustee within 30 days
after the same is so required to be filed with the Commission.

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ARTICLE 8

CONSOLIDATION, MERGER, CONVEYANCE, TRANSFER OR LEASE 

     Section 8.1 Company May Consolidate, etc., Only on Certain Terms.

     The Company may not merge or consolidate with or into any other Person, in a transaction in
which it is not the surviving Person, or sell, convey, transfer, lease or otherwise dispose of all
or substantially all of its assets to any Person, unless (i) the surviving or transferee Person is
organized and existing under the laws of the United States or a State thereof or the District of
Columbia and such Person expressly assumes by supplemental indenture all the obligations of the
Company under the Securities and under this Indenture, (ii) immediately thereafter, giving effect
to such merger or consolidation, or such sale, conveyance, transfer or other disposition, no
default or Event of Default shall have occurred and be continuing and (iii) the Company shall have
delivered to the Trustee an Officers’ Certificate and an Opinion of Counsel each stating that such
merger, consolidation, sale, conveyance, transfer, lease or other disposition complies with this
Article 8 and that all conditions precedent herein provided for relating to such
transaction have been complied with.

     Section 8.2 Successor Substituted.

     Upon any consolidation of the Company with, or merger of the Company into, any other Person or
any conveyance, transfer or lease of all or substantially all of the properties and assets of the
Company in accordance with Section 8.1, the successor Person formed by such consolidation
or into which the Company is merged or to which such sale, 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.

ARTICLE 9

SUPPLEMENTAL INDENTURES 

     Section 9.1 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 for any of the following purposes:

          (1) to evidence the succession of another Person to the Company, or successive successions,
and the assumption by any such successor of the covenants and obligations of the Company herein and
in the Securities in compliance with Article 8; or

          (2) to add to the covenants of the Company for the benefit of the Holders of any one or more
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), to convey, transfer, assign, mortgage or pledge any property to or with the Trustee or
otherwise secure any series of the Securities, including provisions regarding the circumstances
under which collateral may be released or substituted, to surrender any right or power herein
conferred upon the Company or to comply with any requirement of the Commission or otherwise in
connection with the qualification of this Indenture or any supplemental indenture under the Trust
Indenture Act; or

          (3) to add any additional Events of Default for the benefit of the Holders of any one or more
series of Securities (and if such additional Events of Default are to be for the benefit of less
than all series of Securities, stating that such additional Events of Default are expressly being
included solely for the benefit of such series); 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, registrable or not
registrable as to principal, and with or without interest coupons, or to permit or facilitate the
issuance of Securities in global form or uncertificated form; or

          (5) to add to, change or eliminate any of the provisions of this Indenture in respect of one
or more series of Securities, provided that any such addition, change or elimination (A) shall
neither (i) apply to any Outstanding Security of any series created prior to the execution of such
supplemental indenture and entitled to the benefit of such provision, or (ii) modify the rights of
any Holder of any Outstanding Security with respect to such provision, or (B) shall become
effective when there is no Security then Outstanding; or

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          (6) to add or provide for a guaranty or guarantees of the Securities or additional obligors on
the Securities; or

          (7) to establish the form or terms of Securities of any series as permitted by Sections
2.1 and 3.1; 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 6.11; or

          (9) to correct or supplement any provision herein which may be defective or inconsistent with
any other provision herein, to cure any ambiguity or omission, to correct any mistake, or to
conform to any prospectus pursuant to which Securities of any series were offered; or

          (10) to make any other provisions with respect to matters or questions arising under this
Indenture, provided such action shall not adversely affect the rights of any Holder of Securities
of any series; or

          (11) to make any change that does not adversely affect the rights of any Holder.

     Section 9.2 Supplemental Indentures with Consent of Holders.

     With the consent of the Holders of a majority in principal amount of the Outstanding
Securities of each series affected by such supplemental indenture (acting as one 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 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 any indenture supplemental hereto 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 the
date fixed for payment of interest on or any sinking fund payment with respect to, any Security, or
reduce the principal amount thereof or the rate of interest thereon, any Additional Amounts with
respect thereto or any premium payable upon the redemption thereof, or change any obligation of the
Company to pay Additional Amounts (except as contemplated by Section 8.1 and permitted by
clause (1) of Section 9.1), or reduce the amount of the principal of an Original
Issue Discount Security or any other Security which would be due and payable upon a declaration of
acceleration of the Maturity thereof pursuant to Section 5.2, or change any Place of
Payment where, or the coin or currency or currencies (including composite currencies) in which any
Security or any premium or interest thereon or Additional Amounts with respect thereto 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 modify
the provisions of this Indenture with respect to the subordination of a Security in a manner
adverse to the holder thereof, 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 9.2, Section 5.13 or
Section 10.8, except to increase any such percentage or to provide with respect to any
particular series the right to condition the effectiveness of any supplemental indenture as to that
series on the consent of the Holders of a specified percentage of the aggregate principal amount of
Outstanding Securities of such series (which provision may be made pursuant to Section 3.1
without the consent of any Holder) or to provide that certain other provisions of this Indenture
cannot be modified or waived without the consent of the Holder of each Outstanding Security
affected thereby; provided, however, that this clause shall not be deemed to require the consent of
any Holder with respect to changes in the references to “the Trustee” and concomitant
changes in this Section 9.2 and Section 10.8, or the deletion of this proviso, in
accordance with the requirements of Sections 6.11 and 9.1(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.

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     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 9.3 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 Sections 6.1 and 6.3) shall
be fully protected in relying upon, an Opinion of Counsel stating that the execution of such
supplemental indenture is authorized or permitted by this Indenture. The Trustee may, but shall not
be obligated to, enter into any such supplemental indenture which affects the Trustee’s own rights,
duties, immunities or liabilities under this Indenture or otherwise.

     Section 9.4 Effect of Supplemental Indentures.

     Upon the execution of any supplemental indenture under this Article 9, 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; provided that if such supplemental
indenture makes any of the changes described in clauses (1) through (3) of the
first proviso to Section 9.2, such supplemental indenture shall bind each Holder of a
Security who has consented to it and every subsequent Holder of such Security or any part thereof.

     Section 9.5 Conformity with Trust Indenture Act.

     Every supplemental indenture executed pursuant to this Article 9 shall conform to the
requirements of the Trust Indenture Act.

     Section 9.6 Reference in Securities to Supplemental Indentures.

     Securities of any series authenticated and delivered after the execution of any supplemental
indenture pursuant to this Article 9 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 10

COVENANTS 

     Section 10.1 Payment of Principal, Premium and Interest.

     The Company covenants and agrees for the benefit of the Holders of each series of Securities
that it will duly and punctually pay the principal of and any premium and interest on, and any
Additional Amounts with respect to, the Securities of that series in accordance with the terms of
the Securities and this Indenture.

     Section 10.2 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 any 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. Unless otherwise provided in a
supplemental indenture or pursuant to Section 3.1 hereof, the Place of Payment for any
series of Securities shall be the Corporate Trust Office of the Trustee.

     The Company may also from time to time designate one or more other offices or agencies where
the Securities of one or more series may be presented or surrendered for any or all such purposes
and may from time to time rescind such designations; provided, however, that no such designation or
rescission shall in any manner relieve the Company of its obligation to maintain an office or

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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 10.3 Money for Securities Payments to be Held in Trust.

     If the Company, any Subsidiary or any of their respective Affiliates shall at any time act as
Paying Agent with respect to any series of Securities, such Paying Agent will, on or before each
due date of the principal of or any premium or interest on, or any Additional Amounts with respect
to, 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 any premium and interest, or any
Additional Amounts, so becoming due until such sums shall be paid to such Persons or otherwise
disposed of as herein provided and will promptly notify the Trustee of its action or failure so to
act.

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

     The Company will cause each Paying Agent for any series of Securities other than the Trustee
to execute and deliver to the Trustee an instrument in which such Paying Agent shall agree with the
Trustee, subject to the provisions of this Section 10.3, that such Paying Agent will (1)
comply with the provisions of the Trust Indenture Act applicable to it as a Paying Agent and (2)
during the continuance of any default by the Company (or any other obligor upon the Securities of
that series) in the making of any payment in respect of the Securities of that series, upon the
written request of the Trustee, forthwith pay to the Trustee all sums held in trust by such Paying
Agent for payment in respect of the Securities of that series.

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

     Any money deposited with the Trustee or any Paying Agent, or then held by the Company, in
trust for the payment of the principal of or any premium or interest on, or any Additional Amounts
with respect to, any Security of any series and remaining unclaimed for a period ending on the
earlier of the date that is ten Business Days prior to the date such money would escheat to the
State or two years after such principal, premium or interest or Additional Amount has become due
and payable shall be paid to the Company on Company Request, or (if then held by the Company) shall
be discharged from such trust; and the Holder of such Security shall thereafter, as an unsecured
general creditor, look only to the Company for payment thereof, and all liability of the Trustee or
such Paying Agent with respect to such trust money, and all liability of the Company as trustee
thereof, shall thereupon cease; provided, however, that the Trustee or such Paying Agent, before
being required to make any such repayment, may at the expense of the Company cause to be published
once, in an Authorized Newspaper in The Borough of Manhattan, The City of New York and in such
other Authorized Newspapers as the Trustee shall deem appropriate, notice that such money remains
unclaimed and that, after a date specified herein, which shall not be less than 30 days from the
date of such publication, any unclaimed balance of such money then remaining will, unless otherwise
required by mandatory provisions of applicable escheat, or abandoned or unclaimed property law, be
repaid to the Company.

     Section 10.4 Statement by Officers as to Default.

     At any time at which there are Outstanding Securities of any series issued under this
Indenture, 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 complying with
Section 314(a)(4) of the Trust Indenture Act and stating that a review of the activities of
the Company during such year and of performance under this Indenture has been made under the
supervision of the signers thereof and stating whether or not to the best knowledge of the signers
thereof, based upon such review, the Company is in default in the performance and observance of any
of the terms, provisions and conditions of this Indenture (without regard to any period of grace or
requirement of notice provided hereunder) and, if the Company shall be in default, specifying all
such defaults and the nature and status thereof of which they may have knowledge. One of the
officers signing the Officers’ Certificate delivered pursuant to this Section 10.05 shall
be the principal executive, financial or accounting officer of the Company.

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     Section 10.5 Existence.

     Subject to Article 8, the Company will do or cause to be done all things necessary to
preserve and keep in full force and effect its existence.

     Section 10.6 All Securities to be Equally and Ratably Secured.

     Unless specified otherwise by the Company pursuant to Section 3.1 with respect to any
series, the Company will not itself secure Securities of any one or more series with any Mortgage,
without effectively providing that the Securities of every other series shall be secured equally
and ratably by such Mortgage.

     Section 10.7 Maintenance of Properties.

     The Company will cause all properties used or useful in the conduct of its business to be
maintained and kept in good condition, repair and working order and supplied with all necessary
equipment and will cause to be made all necessary repairs, renewals, replacements, betterments and
improvements thereof, all as, and to the extent, in the judgment of the Company may be necessary or
appropriate in connection with its business; provided, however, that nothing in this Section shall
prevent the Company from discontinuing the operation or maintenance of any of such properties if
such discontinuance is, in the judgment of the Company, desirable in the conduct of its business
and not disadvantageous in any material respect to the Holders.

     Section 10.8 Payment of Taxes and Other Claims.

     The Company will pay or discharge or cause to be paid or discharged, before the same shall
become delinquent, (1) all taxes, assessments and governmental charges levied or imposed upon the
Company or upon the income, profits or property of the Company, and (2) all lawful claims for
labor, materials and supplies which, if unpaid, might by law become a lien upon the property of the
Company; provided, however, that the Company shall not be required to pay or discharge or cause to
be paid or discharged any such tax, assessment, charge or claim (i) whose amount, applicability or
validity is being contested in good faith by appropriate proceedings or (ii) if the failure to pay
or discharge would not have a material adverse effect on the assets, business, operations,
properties or financial condition of the Company and its Subsidiaries, taken as a whole.

     Section 10.9 Waiver of Certain Covenants.

     Except as otherwise specified as contemplated by Section 3.1 for Securities of such
series, the Company may, with respect to the Securities of any series, omit in any particular
instance to comply with any term, provision or condition set forth in any covenant provided
pursuant to Sections 3.1(22), 9.1(2), 8.1, 10.4, 10.5,
10.6, 10.7 or 10.8 for the benefit of the Holders of such series if before
or after the time for such compliance the Holders of at least a majority in principal amount of the
Outstanding Securities of such series shall, by Act of such Holders, either waive such compliance
in such instance or generally waive compliance with such term, provision or condition, but no such
waiver shall extend to or affect such term, provision or condition except to the extent so
expressly waived, and, until such waiver shall become effective, the obligations of the Company and
the duties of the Trustee in respect of any such term, provision or condition shall remain in full
force and effect.

     Section 10.10 Additional Amounts.

     If the Securities of a series expressly provide for the payment of Additional Amounts, the
Company will pay to the Holder of any Security of such series Additional Amounts as expressly
provided therein. Whenever in this Indenture there is mentioned, in any context, the payment of the
principal of, or premium (if any) or interest on any Security of any series or the net proceeds
received from the sale or exchange of any Security of any series, such mention shall be deemed to
include mention of the payment of Additional Amounts provided for in this Section 10.10 to
the extent that, in such context, Additional Amounts are, were or would be payable in respect
thereof pursuant to the provisions of this Section 10.10 and express mention of the payment
of Additional Amounts (if applicable) in any provisions hereof shall not be construed as excluding
Additional Amounts in those provisions hereof where such express mention is not made.

     If the Securities of a series provide for the payment of Additional Amounts, at least 10 days
prior to the first Interest Payment Date with respect to that series of Securities (or if the
Securities of that series will not bear interest prior to Maturity, the first day on which a
payment of principal and any premium is made), and at least 10 days prior to each date of payment
of principal and any premium or interest if there has been any change with respect to the matters
set forth in the below-mentioned Officers’ Certificate, the Company

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shall furnish the Trustee and the Company’s principal Paying Agent or Paying Agents, if other than
the Trustee, with an Officers’ Certificate instructing the Trustee and such Paying Agent or Paying
Agents whether such payment of principal of and any premium or interest on the Securities of that
series shall be made to Holders of Securities of that series who are United States Aliens without
withholding for or on account of any tax, assessment or other governmental charge described in the
Securities of that series. If any such withholding shall be required, then such Officers’
Certificate shall specify by country the amount, if any, required to be withheld on such payments
to such Holders of Securities and the Company will pay to such Paying Agent the Additional Amounts
required by this Section 10.10. The Company covenants to indemnify the Trustee and any
Paying Agent for, and to hold them harmless against any loss, liability or expense reasonably
incurred without negligence, willful misconduct or bad faith on their part arising out of or in
connection with actions taken or omitted by any of them in reliance on any Officers’ Certificate
furnished pursuant to this Section 10.10.

ARTICLE 11

REDEMPTION OF SECURITIES 

     Section 11.1 Applicability of Article.

     Securities of any series that are redeemable in whole or in part before their Stated Maturity
shall be redeemable in accordance with their terms and (except as otherwise specified as
contemplated by Section 3.1 for such Securities) in accordance with this Article
11.

     Section 11.2 Election to Redeem; Notice to Trustee.

     The election of the Company to redeem any Securities shall be evidenced by a Board Resolution
or in another manner specified as contemplated by Section 3.1 for such Securities. In case
of any redemption at the election of the Company of less than all the Securities of any series
(including any such redemption affecting only a single Security), the Company shall, at least 45
days prior to the Redemption Date fixed by the Company (unless a shorter notice shall be
satisfactory to the Trustee), notify the Trustee of such Redemption Date, of the principal amount
of Securities of such series to be redeemed and, if applicable, of the tenor of the Securities to
be redeemed. In the case of any redemption of Securities (i) prior to the expiration of any
restriction on such redemption provided in the terms of such Securities or elsewhere in this
Indenture or (ii) pursuant to an election of the Company which is subject to a condition specified
in the terms of such Securities, the Company shall furnish the Trustee with an Officers’
Certificate evidencing compliance with such restriction or condition.

     Section 11.3 Selection by Trustee of Securities to Be Redeemed.

     If less than all the Securities of any series are to be redeemed (unless all the Securities of
such series and of a specified tenor are to be redeemed or unless such redemption affects only a
single Security), the particular Securities to be redeemed shall be selected not more than 45 days
prior to the Redemption Date by the Trustee, from the Outstanding Securities of such series not
previously called for redemption, on a pro-rata basis, or in the Trustee’s discretion, by lot, or
by such other method as the Trustee shall deem fair and appropriate, provided that the unredeemed
portion of the principal amount of any Security shall be in an authorized denomination (which shall
not be less than the minimum authorized denomination) for such Security.

     If any Security selected for partial redemption is converted in part before termination of the
conversion right with respect to the portion of the Security so selected, the converted portion of
such Security shall be deemed (so far as may be) to be the portion selected for redemption.

     The Trustee shall promptly notify the Company and the Security Registrar in writing of the
Securities selected for redemption as aforesaid and, in case of any Securities selected for partial
redemption as aforesaid, 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 11.4 Notice of Redemption.

     Notice of redemption shall be given by first-class mail, postage prepaid, mailed not fewer
than 30 nor more than 90 days prior to the Redemption Date, unless a shorter period is specified in
the Securities to be redeemed, to each Holder of Securities to be redeemed, at its address
appearing in the Security Register.

     All notices of redemption shall state:

          (1) the Redemption Date,

          (2) the Redemption Price (including accrued interest, if any, to be paid),

          (3) if less than all the Outstanding Securities of any series consisting of more than a single
Security are to be redeemed, the identification (and, in the case of partial redemption of any such
Securities, the principal amounts) of the particular Securities to be redeemed and, if less than
all the Outstanding Securities of any series consisting of a single Security are to be redeemed,
the principal amount of the particular Security to be redeemed,

          (4) in case any Security is to be redeemed in part only, that on and after the Redemption
Date, upon surrender of such Security, the Holder of such Security will receive, without charge, a
new Security or Securities of authorized denominations for the principal amount thereof remaining
unredeemed;

          (5) 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,

          (6) the place or places where each such Security is to be surrendered for payment of the
Redemption Price,

          (7) if applicable, the conversion price, the date on which the right to convert the principal
of the Securities or the portions thereof to be redeemed will terminate, and the place or places
where such Securities may be surrendered for conversion,

          (8) that the redemption is for a sinking fund, if such is the case, and

          (9) the CUSIP number or numbers and/or common codes of the Security being redeemed.

     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, provided that the Company shall have prepared and provided to the Trustee the form of
such notice, or, if acceptable to the Trustee, provided sufficient information to enable the
Trustee to prepare such notice, in each case on a timely basis.

     Section 11.5 Deposit of Redemption Price.

     On or prior to any Redemption Date, the Company shall deposit with the Trustee or with a
Paying Agent (or, if the Company is acting as its own Paying Agent, segregate and hold in trust as
provided in Section 10.3) an amount of money sufficient to pay the Redemption Price of, and
(except if the Redemption Date shall be an Interest Payment Date) accrued interest on, all the
Securities which are to be redeemed on that date.

     If any Security called for redemption is converted, any money deposited with the Trustee or
with a Paying Agent or so segregated and held in trust for the redemption of such Security shall
(subject to any right of any Holder of such Security to receive interest thereon) be paid to the
Company on Company Request, or if then held by the Company, shall be discharged from such trust.

     Section 11.6 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 (and any Additional Amounts) to the Redemption
Date; provided, however, that, unless otherwise specified as contemplated by Section 3.1,
installments of interest whose Stated Maturity is on or prior to the Redemption Date will be
payable to

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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 3.7.

     If any Security called for redemption shall not be so paid upon surrender thereof for
redemption, the principal and any premium shall, until paid, bear interest from the Redemption Date
at the rate prescribed therefor in the Security or, in the case of Original Issue Discount
Securities, the Securities’ Yield to Maturity.

     Section 11.7 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 its 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 Stated Maturity 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.

     Unless otherwise specified as contemplated by Section 3.1, the Company and any
Affiliate of the Company may at any time purchase or otherwise acquire Securities in the open
market or by private agreement. Such acquisition shall not operate as or be deemed for any purpose
to be a redemption of the indebtedness represented by such Securities. Any Securities purchased or
acquired by the Company may be delivered to the Trustee and, upon such delivery, the indebtedness
represented thereby shall be deemed to be satisfied. Section 3. 9 shall apply to all
Securities so delivered.

ARTICLE 12

SINKING FUNDS 

     Section 12.1 Applicability of Article.

     The provisions of this Article 12 shall be applicable to any sinking fund for the
retirement of Securities of any series except as otherwise specified as contemplated by Section
3.1 for such Securities.

     The minimum amount of any sinking fund payment provided for by the terms of any Securities 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 such Securities is herein referred to as an
“optional sinking fund payment.” Unless otherwise provided for by the terms of any
Securities, the cash amount of any sinking fund payment may be subject to reduction as provided in
Section 12.2. Each sinking fund payment shall be applied to the redemption of Securities as
provided for by the terms of such Securities.

     Section 12.2 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 any Securities of such series required to be made pursuant to the terms of such
Securities as and to the extent provided for by the terms of such Securities; provided that the
Securities to be so credited have not been previously so credited. The Securities to be so credited
shall be received and credited for such purpose by the Trustee at the Redemption Price, as
specified in the Securities so to be redeemed, for redemption through operation of the sinking fund
and the amount of such sinking fund payment shall be reduced accordingly.

     Section 12.3 Redemption of Securities for Sinking Fund.

     Not fewer than 45 days prior (unless a shorter period shall be satisfactory to the Trustee) to
each sinking fund payment date for any Securities, the Company will deliver to the Trustee an
Officers’ Certificate specifying the amount of the next ensuing sinking fund payment for such
Securities pursuant to the terms of such Securities, 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 pursuant to Section 12.2 and will also deliver to the
Trustee any Securities to be so delivered. Not fewer than 30 days prior to 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 11.3 and

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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 11.4. Such notice having been duly given, the redemption
of such Securities shall be made upon the terms and in the manner stated in Sections 11.6
and 11.7.

ARTICLE 13

DEFEASANCE AND COVENANT DEFEASANCE 

     Section 13.1 Company’s Option to Effect Defeasance or Covenant Defeasance.

     The Company may elect, at its option at any time, to have Section 13.2 or Section
13.3 applied to any Securities or any series of Securities, as the case may be, designated
pursuant to Section 3.1 as being defeasible pursuant to such Section 13.2 or
13.3, in accordance with any applicable requirements provided pursuant to Section
3.1 and upon compliance with the conditions set forth below in this Article 13. Any
such election shall be evidenced by a Board Resolution or in another manner specified as
contemplated by Section 3.1 for such Securities.

     Section 13.2 Defeasance and Discharge.

     Upon the Company’s exercise of its option (if any) to have this Section applied to any
Securities or any series of Securities, as the case may be, the Company shall be deemed to have
been discharged from its obligations with respect to such Securities as provided in this Section on
and after the date the conditions set forth in Section 13.4 are satisfied (hereinafter
called “Defeasance”). For this purpose, such Defeasance means that the Company shall be
deemed to have paid and discharged the entire indebtedness represented by such Securities 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), subject to the following which shall survive until otherwise
terminated or discharged hereunder:

          (1) the rights of Holders of such Securities to receive, solely from the trust fund described
in Section 13.4 and as more fully set forth in such Section, payments in respect of the
principal of and any premium and interest on, or any Additional Amounts with respect to, such
Securities when payments are due,

          (2) the Company’s obligations with respect to such Securities under Sections 3.4, 3.5, 3.6,
10.2 and 10.3,

          (3) the rights, powers, trusts, duties and immunities of the Trustee hereunder, and

          (4) this Article 13.

Subject to compliance with this Article 13, the Company may exercise its option (if any) to
have this Section applied to any Securities notwithstanding the prior exercise of its option (if
any) to have Section 13.3 applied to such Securities.

     Section 13.3 Covenant Defeasance.

     Upon the Company’s exercise of its option (if any) to have this Section 13.3 applied
to any Securities or any series of Securities, as the case may be,

          (1) the Company shall be released from their obligations under Sections 8.1,
10.4, 10.5. 10.6, 10.7 or 10.8 and any covenants provided
pursuant to Sections 3.1(22) or 9.1(2) for the benefit of the Holders of such
Securities and

          (2) the occurrence of any event specified in Section 5.1(4) (with respect to any of
Sections 8.1, 10.4, 10.5. 10.6, 10.7 or 10.8 and
any such covenants provided pursuant to Sections 3.1(22) or 9.1(2)) and the
occurrence of any other Event of Default specified pursuant to Section 3.1 or Section
9.1(3) shall be deemed not to be or result in an Event of Default, in each case with respect to
such Securities or any series of Securities as provided in this Section 13.3 on and after
the date the conditions set forth in Section 13.4 are satisfied (hereinafter called
“Covenant Defeasance”). For this purpose, such Covenant Defeasance means that, with respect
to such Securities, 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 specified Section or such other covenant
(to the extent so specified in the case of Section 5.1(4) and the occurrence of any Event
of Default specified pursuant to Section 3.1 or Section 9.1(3)), whether directly
or indirectly by reason of any reference elsewhere herein to any such Section or such other
covenant or by reason of any reference in any such Section or such other covenant

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to any other provision herein or in any other document, but the remainder of this Indenture and
such Securities shall be unaffected thereby.

     Section 13.4 Conditions to Defeasance or Covenant Defeasance.

     The following shall be the conditions to the application of Section 13.2 or
Section 13.3 to any Securities or any series of Securities, as the case may be:

          (1) The Company shall have deposited or caused to be deposited irrevocably with the Trustee
(or another trustee which satisfies the requirements contemplated by Section 6.9 and agrees
to comply with the provisions of this Article 13 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 benefits of the Holders of such Securities,

               (A) in the case of Securities of a series denominated in currency of the United States of
America,

                    (i) cash in currency of the United States of America in an amount, or

                    (ii) 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, an amount in cash, or

                    (iii) a combination thereof, or

               (B) in the case of Securities of a series denominated in currency other than that of the
United States of America,

                    (i) cash in the currency in which such series of Securities is denominated in an amount, or

                    (ii) Foreign 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, an amount in cash, or

                    (iii) a combination thereof,

in each case sufficient, in the opinion of a nationally recognized firm of independent public
accountants expressed in a written certification thereof delivered to the Trustee, to pay and
discharge, and which shall be applied by the Trustee (or any such other qualifying trustee) to pay
and discharge, the principal of and any premium and interest on such Securities on the respective
Stated Maturities, in accordance with the terms of this Indenture and such Securities.

          (2) For Securities denominated in United States dollars, in the event of an election to have
Section 13.2 apply to any Securities or any series of Securities, as the case may be, the
Company shall have delivered to the Trustee an Opinion of Counsel stating that

               (A) the Company has received from, or there has been published by, the Internal Revenue
Service a ruling or

               (B) since the date of this instrument, there has been a change in the applicable Federal
income tax law, in either case clause (A) or (B) to the effect that, and based thereon such opinion
shall confirm that, the Holders of such Securities will not recognize gain or loss for Federal
income tax purposes as a result of the deposit, Defeasance and discharge to be effected with
respect to such Securities and will be subject to Federal income tax on the same amount, in the
same manner and at the same times as would be the case if such deposit, Defeasance and discharge
were not to occur.

          (3) For Securities denominated in United States dollars, in the event of an election to have
Section 13.3 apply to any Securities or any series of Securities, as the case may be, the
Company shall have delivered to the Trustee an Opinion of Counsel to the effect that the Holders of
such Securities will not recognize gain or loss for Federal income tax purposes as a result of the
deposit and Covenant Defeasance to be effected with respect to such Securities and will be subject
to Federal income tax on the same amount, in the same manner and at the same times as would be the
case if such deposit and Covenant Defeasance were not to occur.

          (4) The Company shall have delivered to the Trustee an Officers’ Certificate to the effect
that neither such Securities nor any other Securities of the same series, if then listed on any
securities exchange, will be delisted as a result of such deposit.

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          (5) No event which is, or after notice or lapse of time or both would become, an Event of
Default with respect to such Securities or any other Securities shall have occurred and be
continuing at the time of such deposit or, with regard to any such event specified in Sections
5.1(5) and (6), at any time on or prior to the 90th day after the date of such deposit
(it being understood that this condition shall not be deemed satisfied until after such 90th day).

          (6) Such Defeasance or Covenant Defeasance shall not cause the Trustee to have a conflicting
interest within the meaning of the Trust Indenture Act (assuming all Securities are in default
within the meaning of such Act).

          (7) 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.

          (8) Such Defeasance or Covenant Defeasance shall not result in the trust arising from such
deposit constituting an investment company within the meaning of the Investment Company Act unless
such trust shall be registered under such Act or exempt from registration thereunder.

          (9) The Company shall have delivered to the Trustee an Officers’ Certificate and an Opinion of
Counsel, each stating that all conditions precedent with respect to such Defeasance or Covenant
Defeasance have been complied with.

     Section 13.5 Deposited Money, U. S. Government Obligations and Foreign Government
Obligations to be Held in Trust; Miscellaneous Provisions.

     Subject to the provisions of the last paragraph of Section 10.3, all money, U.S.
Government Obligations and Foreign Government Obligations (including the proceeds thereof)
deposited with the Trustee or other qualifying trustee (solely for purposes of this Section
13.5 and Section 13.6, the Trustee and any such other trustee are referred to
collectively as the “Trustee”) pursuant to Section 13.4 in respect of any
Securities 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 such Paying
Agent (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
any premium and interest, but money so held in trust 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 U.S. Government Obligations or Foreign
Government Obligations deposited pursuant to Section 13.4 or the principal and interest
received in respect thereof other than any such tax, fee or other charge which by law is for the
account of the Holders of Outstanding Securities. Anything in this Article 13 to the
contrary notwithstanding, the Trustee shall deliver or pay to the Company from time to time upon
Company Request any money, U.S. Government Obligations or Foreign Government Obligations held by it
as provided in Section 13.4 with respect to any Securities 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 the Defeasance or Covenant Defeasance, as the case may be, with respect
to such Securities.

     Section 13.6 Reinstatement.

     If the Trustee or the Paying Agent is unable to apply any money in accordance with this
Article 13 with respect to any Securities by reason of any order or judgment of any court
or governmental authority enjoining, restraining or otherwise prohibiting such application, then
the obligations under this Indenture and such Securities from which the Company has been discharged
or released pursuant to Section 13.2 or 13.3 shall be revived and reinstated as
though no deposit had occurred pursuant to this Article 13 with respect to such Securities,
until such time as the Trustee or Paying Agent is permitted to apply all money held in trust
pursuant to Section 13.5 with respect to such Securities in accordance with this
Article 13; provided, however, that if the Company makes any payment of principal of or any
premium or interest on any such Security following such reinstatement of its obligations, the
Company shall be subrogated to the rights (if any) of the Holders of such Securities to receive
such payment from the money so held in trust.

[signature page follows]

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

	 	 	 	 	 	 	 
	 	 	DUSA PHARMACEUTICALS, INC.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	Title:	 	 	 	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	[TRUSTEE]	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	Title:	 	 	 	 
	 

	 	 	 	 	 	 

- 49 -

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