Document:

exv4w14

Exhibit 4.14

 

JEFFERIES GROUP, INC.,

Issuer

and

THE BANK OF NEW YORK MELLON,

Trustee

INDENTURE

Dated as of October ___, 2009

Convertible Securities

 

 

 

JEFFERIES GROUP, INC.

Certain Sections of this Indenture relating to

Sections 3.10 through 3.18, inclusive, of the

Trust Indenture Act of 1939:

					
	Trust Indenture	 	 
	Act Section	 	Indenture Section
	§ 310
	 	(a)(1)
	 	6.10
	 
	 	(a)(2)
	 	6.10
	 
	 	(a)(3)
	 	Not Applicable
	 
	 	(a)(4)
	 	Not Applicable
	 
	 	(a)(5)
	 	6.10
	 
	 	(b)
	 	6.08
	 
	 	 
	 	6.10
	 
	 	(c)
	 	Not Applicable
	§ 311
	 	(a)
	 	6.11
	 
	 	(b)
	 	6.11
	 
	 	(c)
	 	Not Applicable
	§ 312
	 	(a)
	 	7.01
	 
	 	 
	 	7.02
	 
	 	(b)
	 	7.02
	 
	 	(c)
	 	7.02
	§ 313
	 	(a)
	 	7.03
	 
	 	(b)
	 	7.03
	 
	 	(c)
	 	7.03
	 
	 	(d)
	 	7.03
	§ 314
	 	(a)
	 	7.04
	 
	 	(a)(4)
	 	1.01
	 
	 	 
	 	10.06
	 
	 	(b)
	 	Not Applicable
	 
	 	(c)(1)
	 	1.02
	 
	 	(c)(2)
	 	1.02
	 
	 	(c)(3)
	 	Not Applicable
	 
	 	(d)
	 	Not Applicable
	 
	 	(e)
	 	1.02
	§ 315
	 	(a)
	 	6.01
	 
	 	(b)
	 	6.05
	 
	 	(c)
	 	6.01
	 
	 	(d)
	 	6.01
	 
	 	(e)
	 	5.14
	§ 316
	 	(a)
	 	1.01
	 
	 	(a)(1)(A)
	 	5.02
	 
	 	 	 	5.12
	 
	 	 	 	5.13
	 
	 	(a)(1)(B)
	 	5.13
	 
	 	(a)(2)
	 	Not Applicable
	 
	 	(b)
	 	5.08
	 
	 	(c)
	 	1.04
	§ 317
	 	(a)(1)
	 	5.03
	 
	 	(a)(2)
	 	5.04
	 
	 	(b)
	 	10.03
	§ 318
	 	(a)
	 	1.07

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

 

 

TABLE OF CONTENTS

	 	 	 	 	 
	 	 	PAGE
	ARTICLE I DEFINITIONS AND OTHER PROVISIONS OF GENERAL APPLICATION
	 	 	1	 
	Section 1.01 Definitions
	 	 	1	 
	Section 1.02 Compliance Certificates and Opinions
	 	 	7	 
	Section 1.03 Form of Documents Delivered to Trustee
	 	 	8	 
	Section 1.04 Acts of Holders; Record Dates
	 	 	8	 
	Section 1.05 Notices, Etc., to Trustee and Company
	 	 	10	 
	Section 1.06 Notice to Holders; Waiver
	 	 	10	 
	Section 1.07 Conflict with Trust Indenture Act
	 	 	11	 
	Section 1.08 Effect of Headings and Table of Contents
	 	 	11	 
	Section 1.09 Successors and Assigns
	 	 	12	 
	Section 1.10 Separability Clause
	 	 	12	 
	Section 1.11 Benefits of Indenture
	 	 	12	 
	Section 1.12 Governing Law
	 	 	12	 
	Section 1.13 Legal Holidays
	 	 	12	 
	Section 1.14 Waiver of Jury Trial
	 	 	12	 
	Section 1.15 Force Majeure
	 	 	12	 
	ARTICLE II SECURITY FORMS
	 	 	13	 
	Section 2.01 Forms Generally
	 	 	13	 
	Section 2.02 Form of Face of Security
	 	 	13	 
	Section 2.03 Form of Reverse of Security
	 	 	15	 
	Section 2.04 Form of Legend for Global Securities
	 	 	20	 
	Section 2.05 Form of Trustee’s Certificate of Authentication
	 	 	20	 
	ARTICLE III THE SECURITIES
	 	 	21	 
	Section 3.01 Amount Unlimited; Issuable in Series
	 	 	21	 
	Section 3.02 Denominations
	 	 	23	 
	Section 3.03 Execution, Authentication, Delivery and Dating
	 	 	23	 
	Section 3.04 Temporary Securities
	 	 	25	 
	Section 3.05 Registration, Registration of Transfer and Exchange
	 	 	25	 
	Section 3.06 Mutilated, Destroyed, Lost and Stolen Securities
	 	 	27	 

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TABLE OF CONTENTS
(continued)

	 	 	 	 	 
	 	 	PAGE
	Section 3.07 Payment of Interest; Interest Rights Preserved
	 	 	27	 
	Section 3.08 Persons Deemed Owners
	 	 	28	 
	Section 3.09 Cancellation
	 	 	29	 
	Section 3.10 Computation of Interest
	 	 	29	 
	Section 3.11 CUSIP Numbers
	 	 	29	 
	ARTICLE IV SATISFACTION AND DISCHARGE
	 	 	29	 
	Section 4.01 Satisfaction and Discharge of Indenture
	 	 	29	 
	Section 4.02 Application of Trust Money
	 	 	30	 
	ARTICLE V REMEDIES
	 	 	31	 
	Section 5.01 Events of Default
	 	 	31	 
	Section 5.02 Acceleration of Maturity; Rescission and Annulment
	 	 	32	 
	Section 5.03 Collection of Indebtedness and Suits for Enforcement by Trustee
	 	 	33	 
	Section 5.04 Trustee May File Proofs of Claim
	 	 	34	 
	Section 5.05 Trustee May Enforce Claims Without Possession of Securities
	 	 	34	 
	Section 5.06 Application of Money Collected
	 	 	34	 
	Section 5.07 Limitation on Suits
	 	 	35	 
	Section 5.08 Unconditional Right of Holders to Receive Principal, Premium and Interest and to Convert
	 	 	35	 
	Section 5.09 Restoration of Rights and Remedies
	 	 	36	 
	Section 5.10 Rights and Remedies Cumulative
	 	 	36	 
	Section 5.11 Delay or Omission Not Waiver
	 	 	36	 
	Section 5.12 Control by Holders
	 	 	36	 
	Section 5.13 Waiver of Past Defaults
	 	 	37	 
	Section 5.14 Undertaking for Costs
	 	 	37	 
	Section 5.15 Waiver of Usury, Stay or Extension Laws
	 	 	37	 
	ARTICLE VI THE TRUSTEE
	 	 	38	 
	Section 6.01 Duties of Trustee
	 	 	38	 
	Section 6.02 Rights of Trustee
	 	 	39	 
	Section 6.03 Individual Rights of Trustee
	 	 	40	 
	Section 6.04 Trustee’s Disclaimer
	 	 	40	 

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TABLE OF CONTENTS
(continued)

	 	 	 	 	 
	 	 	PAGE
	Section 6.05 Notice of Default
	 	 	40	 
	Section 6.06 Reports by Trustee to Holders
	 	 	40	 
	Section 6.07 Compensation and Indemnity
	 	 	41	 
	Section 6.08 Replacement of Trustee
	 	 	41	 
	Section 6.09 Successor Trustee by Merger, Etc
	 	 	42	 
	Section 6.10 Eligibility; Disqualification
	 	 	43	 
	Section 6.11 Preferential Collection of Claims against Company
	 	 	43	 
	ARTICLE VII HOLDERS’ LISTS AND REPORTS BY TRUSTEE AND COMPANY
	 	 	43	 
	Section 7.01 Company to Furnish Trustee Names and Addresses of Holders
	 	 	43	 
	Section 7.02 Preservation of Information; Communications to Holders
	 	 	43	 
	Section 7.03 Reports by Trustee
	 	 	44	 
	Section 7.04 Reports by Company
	 	 	44	 
	ARTICLE VIII CONSOLIDATION, MERGER, CONVEYANCE, TRANSFER OR LEASE
	 	 	44	 
	Section 8.01 When Company May Merge, Etc
	 	 	44	 
	Section 8.02 Successor Corporation Substituted
	 	 	45	 
	ARTICLE IX SUPPLEMENTAL INDENTURES
	 	 	45	 
	Section 9.01 Supplemental Indentures Without Consent of Holders
	 	 	45	 
	Section 9.02 Supplemental Indentures with Consent of Holders
	 	 	46	 
	Section 9.03 Execution of Supplemental Indentures
	 	 	48	 
	Section 9.04 Effect of Supplemental Indentures
	 	 	48	 
	Section 9.05 Conformity with Trust Indenture Act
	 	 	48	 
	Section 9.06 Reference in Securities to Supplemental Indentures
	 	 	48	 
	ARTICLE X COVENANTS
	 	 	48	 
	Section 10.01 Payment of Securities
	 	 	48	 
	Section 10.02 Maintenance of Office or Agency
	 	 	49	 
	Section 10.03 Money for Securities Payments to Be Held in Trust
	 	 	49	 
	Section 10.04 Corporate Existence
	 	 	50	 
	Section 10.05 Payment of Taxes and Other Claims
	 	 	50	 
	Section 10.06 Compliance Certificate; Notice of Default
	 	 	51	 

-iii-

 

TABLE OF CONTENTS
(continued)

	 	 	 	 	 
	 	 	PAGE
	Section 10.07 Waiver of Stay, Extension or Usury Laws
	 	 	51	 
	ARTICLE XI REDEMPTION OF SECURITIES
	 	 	52	 
	Section 11.01 Applicability of Article
	 	 	52	 
	Section 11.02 Election to Redeem; Notice to Trustee
	 	 	52	 
	Section 11.03 Selection by Trustee of Securities to Be Redeemed
	 	 	52	 
	Section 11.04 Notice of Redemption
	 	 	53	 
	Section 11.05 Deposit of Redemption Price
	 	 	53	 
	Section 11.06 Securities Payable on Redemption Date
	 	 	54	 
	Section 11.07 Securities Redeemed in Part
	 	 	54	 
	ARTICLE XII SINKING FUNDS
	 	 	54	 
	Section 12.01 Applicability of Article
	 	 	54	 
	Section 12.02 Satisfaction of Sinking Fund Payments with Securities
	 	 	55	 
	Section 12.03 Redemption of Securities for Sinking Fund
	 	 	55	 
	ARTICLE XIII CONVERSION OF SECURITIES
	 	 	55	 
	Section 13.01 Applicability; Conversion Privilege and Conversion Price
	 	 	55	 
	Section 13.02 Exercise of Conversion Privilege
	 	 	56	 
	Section 13.03 Fractions of Shares
	 	 	57	 
	Section 13.04 Adjustment of Conversion Price
	 	 	57	 
	Section 13.05 Notice of Adjustments of Conversion Price
	 	 	59	 
	Section 13.06 Notice of Certain Corporate Action
	 	 	60	 
	Section 13.07 Company to Reserve Common Stock
	 	 	61	 
	Section 13.08 Taxes on Conversions
	 	 	61	 
	Section 13.09 Covenant as to Common Stock
	 	 	61	 
	Section 13.10 Cancellation of Converted Securities
	 	 	61	 
	Section 13.11 Provisions in Case of Consolidation, Merger or Sale of Assets
	 	 	61	 
	Section 13.12 Responsibility of Trustee
	 	 	62	 

-iv-

 

     INDENTURE, dated as of October ___, 2009, between Jefferies Group, Inc., a corporation duly
organized and existing under the laws of the State of Delaware (herein called the “Company”),
having its principal office at 520 Madison Avenue, 12th Floor, New York, NY 10022 and The Bank of
New York Mellon, a New York banking corporation, as Trustee (herein called the “Trustee”).

RECITALS OF THE COMPANY

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

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

     NOW, THEREFORE, THIS INDENTURE WITNESSETH:

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

ARTICLE I

DEFINITIONS AND OTHER PROVISIONS OF

GENERAL APPLICATION

   Section 1.01 Definitions.

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

               (1) the terms defined in this Article have the meanings assigned to them in this Article and
include the plural as well as the singular;

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

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

               (4) the words “Article” and “Section” refer to an Article and Section, respectively, of this
Indenture;

-1-

 

               (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 Articles VI, X and XIII, are defined in those Articles.

          “Act”, when used with respect to any Holder, has the meaning specified in Section
1.04.

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

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

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

          “Board Resolution” means a copy of a resolution certified by the 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 Trustee.

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

          “Capital Lease Obligation” means, at any time any determination thereof is made, the
amount of the liability in respect of a capital lease that would at such time be so required to be
capitalized on the balance sheet in accordance with generally accepted accounting principles.

          “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 Stock” includes any stock 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. However, subject to the provisions of Section 3.01(15) and (16) and Section 13.11, shares
issuable on conversion of Securities shall include only shares of the class designated as Common
Stock of the Company at the date of this instrument or shares of any class or classes resulting
from any reclassification or reclassifications thereof and which have 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 are not subject to

-2-

 

redemption by the Company; provided that if at any time there shall be more than one
such resulting class, the shares of each such class then so issuable shall be substantially in the
proportion which the total number of shares of such class resulting from all such reclassifications
bears to the total number of shares of all such classes resulting from all such reclassifications.

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

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

          “Conversion Agent” means the transfer agent for the Company’s Common Stock, which as
of the date hereof is [                    ], or such other Person as the Company may name from
time to time.

          “Corporate Trust Office” means the principal office of the Trustee in New York, New
York at which at any particular time its corporate trust business shall be administered, which
office as of the date hereof is located at 5 Penn Plaza, 13th Floor, New York, NY 10001.

          “Corporation” means a corporation, association, company, joint-stock company or
business trust.

          “Defaulted Interest” has the meaning specified in Section 3.07.

          “Depositary” means, with respect to Securities of any series issuable in whole or in
part in the form of one or more Global Securities, a clearing agency registered under the Exchange
Act that is designated to act as Depositary for such Securities as contemplated by Section 3.01.

          “Event of Default” has the meaning specified in Section 5.01.

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

          “GAAP” means generally accepted accounting principles set forth in the opinions and
pronouncements of the Accounting Principles Board of the American Standards Board or in such other
statements by such other entity as have been approved by a significant segment of the accounting
profession.

          “Global Security” means a Security that evidences all or part of the Securities of any
series and is authenticated and delivered to, and registered in the name of, the Depositary for
such Securities or a nominee thereof.

          “Guaranty” means a guarantee (other than by endorsement of negotiable instruments for
collection in the ordinary course of business), direct or indirect, in any manner (including,

-3-

 

without limitation, letters of credit and reimbursement agreements in respect thereof), or all
or any part of any Indebtedness.

          “Hedging Obligations” means, with respect to any Person, the Obligations of such
Person under interest rate swap agreements, interest rate cap agreements, and interest rate collar
agreements, and other agreements or arrangements designed to protect such Person against
fluctuations in interest rates.

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

          “Indebtedness” means, with respect to any Person, any indebtedness of such Person,
whether or not contingent, in respect of borrowed money or evidenced by bonds, notes, debentures of
similar instruments or letters of credit (or reimbursement agreements in respect thereof) or
representing Capital Lease Obligations or the balance deferred and unpaid of the purchase price of
any property or representing any Hedging Obligations, except any such balance that constitutes an
accrued expense or trade payable, if and to the extent any of the foregoing indebtedness (other
than letters of credit and Hedging Obligations) would appear as a liability upon a balance sheet of
such Person prepared in accordance with GAAP, and also includes, to the extent not otherwise
included, the Guaranty of any indebtedness of such Person or any other Person.

          “Indenture” means this instrument as originally executed or as it may from time to
time be supplemented or amended by one or more indentures supplemental hereto entered into pursuant
to the applicable provisions hereof, including, for all purposes of this instrument, and any such
supplemental indenture, the provisions of the Trust Indenture Act that are deemed to be a part of
and govern this instrument and any such supplemental indenture, respectively. The term “Indenture”
shall also include the terms of particular series of Securities established as contemplated by
Section 3.01.

          “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.

          “Lien” means any mortgage, lien, pledge, charge, security interest, or other
encumbrance of any kind, whether or not filed, recorded or otherwise perfected under applicable
law.

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

          “Notice of Default” means a written notice of the kind specified in Section 5.01(4).

          “Obligations” means any principal, premium, interest, penalties, fees,
indemnifications, reimbursements, damages and other liabilities payable under the documentation
governing and Indebtedness.

-4-

 

          “Officers’ Certificate” means a certificate signed by the Chairman of the Board, a
Vice Chairman of the Board, the President or a Vice President, and by the Treasurer, an Assistant
Treasurer, the 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 10.06 shall be the
principal executive, financial or accounting officer of the Company.

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

          “Original Issue Discount Security” means any Security which provides for an amount
less than the principal amount thereof to be due and payable upon a declaration of acceleration of
the Maturity thereof pursuant to Section 5.02.

          “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 cancelled 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 3.06 or in exchange for or in lieu of
which other Securities have been authenticated and delivered pursuant to this Indenture, other than
any such Securities in respect of which there shall have been presented to the Trustee proof
satisfactory to it that such Securities are held by a bona fide purchaser in whose hands such
Securities are valid obligations of the Company; provided, however, that in determining whether the
Holders of the requisite principal amount of the Outstanding Securities have given any request,
demand, authorization, direction, notice, consent or waiver hereunder, (A) the principal amount of
an Original Issue Discount Security that shall be deemed to be Outstanding shall be the amount of
the principal thereof that would be due and payable as of the date of such determination upon
acceleration of the Maturity thereof to such date pursuant to Section 5.02, (B) the principal
amount of a Security denominated in one or more foreign currencies or currency units shall be the
U.S. dollar equivalent, determined in the manner provided as contemplated by Section 3.01 on the
date of original issuance of such Security, of the principal amount (or, in the case of an Original
Issue Discount Security, the U.S. dollar equivalent on the date of original issuance of such
Security of the amount determined as provided in Clause (A) above) of such Security, and (C)
Securities owned by the Company or any other obligor upon the Securities or any Affiliate of the
Company or of such other obligor shall be disregarded and deemed not to be Outstanding, except
that, in determining whether the Trustee shall be protected in relying upon any such request,
demand, authorization, direction, notice, consent or waiver, only Securities which a Responsible
Officer of the Trustee actually knows to be so owned shall be so disregarded. Securities so owned
which have been pledged in

-5-

 

good faith may be regarded as Outstanding if the pledgee establishes to the satisfaction of
the Trustee the pledgee’s right so to act with respect to such Securities and that the pledgee is
not the Company or any other obligor upon the Securities or any Affiliate of the Company or of such
other obligor.

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

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

          “Place of Payment”, when used with respect to the Securities of any series, means the
place or places where the principal of and any premium and interest on the Securities of that
series are payable as specified as contemplated by Section 3.01.

          “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 3.06 in
exchange for or in lieu of a mutilated, destroyed, lost or stolen Security shall be deemed to
evidence the same debt as the mutilated, destroyed, lost or stolen Security.

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

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

          “Regular Record Date” for the interest payable on any Interest Payment Date on the
Securities of any series means the date specified for that purpose as contemplated by Section 3.01.

          “Responsible Officer”, when used with respect to the Trustee, means any vice
president, any assistant treasurer, any trust officer or assistant trust officer or any other
officer of the Trustee customarily performing functions similar to those performed by any of the
above designated officers and also means, with respect to a particular corporate trust matter, any
other officer to whom such matter is referred because of his knowledge of and familiarity with the
particular subject and who shall have direct responsibility for the administration of this
Indenture.

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

          “Securities Act” means the Securities Act of 1933, as amended, and the rules and
regulations of the Securities and Exchange Commission promulgated thereunder.

          “Security Register” and “Security Registrar” have the respective meanings specified in
Section 3.05.

-6-

 

          “Special Record Date” for the payment of any Defaulted Interest means a date fixed by
the Trustee pursuant to Section 3.07.

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

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

          “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 each Trustee with respect to Securities of that series.

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

     Section 1.02 Compliance Certificates and Opinions.

          Upon any application or request by the Company to the Trustee to take any action under any
provision of this Indenture, the Company shall furnish to the Trustee such certificates and
opinions as may be required under the Trust Indenture Act. Each such certificate or opinion shall
be given in the form of an Officers’ Certificate, if to be given by an officer of the Company, or
an Opinion of Counsel, if to be given by counsel, and 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 (including certificates provided for in Section 10.06) shall include:

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

               (2) a brief statement as to the nature and scope of the examination or investigation upon
which the statements or opinions contained in such certificate or opinion are based;

-7-

 

               (3) a statement that, in the opinion of each such individual, he has made such examination or
investigation as is necessary to enable him to express an informed opinion as to whether or not
such covenant or condition has been complied with; and

               (4) a statement as to whether, in the opinion of each such individual, such condition or
covenant has been complied with.

     Section 1.03 Form of Documents Delivered to Trustee.

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

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

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

     Section 1.04 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 or taken by Holders may be embodied in and
evidenced by one or more instruments of substantially similar tenor signed by such Holders in
person or by agent duly appointed in writing; and, except as herein otherwise expressly provided,
such action shall become effective when such instrument or instruments are delivered to the Trustee
and, where it is hereby expressly required, to the Company. Such instrument or instruments (and
the action embodied therein and evidenced thereby) are herein sometimes referred to as the “Act” of
the Holders signing such instrument or instruments. Proof of execution of any such instrument or
of a writing appointing any such agent shall be sufficient for any purpose of this Indenture and
(subject to Section 6.01) 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

-8-

 

signing such instrument or writing acknowledged to him the execution thereof. Where such
execution is by a signer acting in a capacity other than his individual capacity, such certificate
or affidavit shall also constitute sufficient proof of his authority. The fact and date of the
execution of any such instrument or writing, or the authority of the Person executing the same, may
also be proved in any other manner which the Trustee deems sufficient.

          The ownership 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 or the Company
in reliance thereon, whether or not notation of such action is made upon such Security.

          The Company may, in the circumstances permitted by the Trust Indenture Act, set any day as the
record date for the purpose of determining the Holders of Outstanding Securities of any series
entitled to give or take any request, demand, authorization, direction, notice, consent, waiver or
other action provided or permitted by this Indenture to be given or taken by Holders of Securities
of such series. With regard to any record date set pursuant to this paragraph, the Holders of
Outstanding Securities of the relevant series on such record date (or their duly appointed agents),
and only such Persons, shall be entitled to give or take the relevant action, whether or not such
Holders remain Holders after such record date. With regard to any action that may be given or
taken hereunder only by Holders of a requisite principal amount of Outstanding Securities of any
series (or their duly appointed agents) and for which a record date is set pursuant to this
paragraph, the Company may, at its option, set an expiration date after which no such action
purported to be given or taken by any Holder shall be effective hereunder unless given or taken on
or prior to such expiration date by Holders of the requisite principal amount of Outstanding
Securities of such series on such record date (or their duly appointed agents). On or prior to any
expiration date set pursuant to this paragraph, the Company may, on one or more occasions at its
option, extend such date to any later date. Nothing in this paragraph shall prevent any Holder (or
any duly appointed agent thereof) from giving or taking, after any such expiration date, any action
identical to, or, at any time, contrary to or different from, the action or purported action to
which such expiration date relates, in which event the Company may set a record date in respect
thereof pursuant to this paragraph. Nothing in this paragraph shall be construed to render
ineffective any action taken at any time by the Holders (or their duly appointed agents) of the
requisite principal amount of Outstanding Securities of the relevant series on the date such action
is so taken. Notwithstanding the foregoing or the Trust Indenture Act, the Company shall not set a
record date for, and the provisions of this paragraph shall not apply with respect to, any notice,
declaration or direction referred to in the next paragraph.

          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 5.02, if an Event of Default
with respect to Securities of such series has occurred and is continuing and the Trustee shall not
have given such a declaration to the Company, (iii) any request to institute proceedings referred
to in Section 5.07(2) or (iv) any direction referred to in Section 5.12, in each case with respect
to Securities of such series. Promptly after any record date is set pursuant to this paragraph,
the

-9-

 

Trustee shall notify the Company and the Holders of Outstanding Series of such series of any
such record date so fixed and the proposed action. The Holders of Outstanding Securities of such
series on such record date (or their duly appointed agents), and only such Persons, shall be
entitled to join in such notice, declaration or direction, whether or not such Holders remain
Holders after such record date; provided that, unless such notice, declaration or direction shall
have become effective by virtue of Holders of the requisite principal amount of Outstanding
Securities of such series on such record date (or their duly appointed agents) having joined
therein on or prior to the 90th day after such record date, such notice, declaration or direction
shall automatically and without any action by any Person be cancelled and of no further effect.
Nothing in this paragraph shall be construed to prevent a Holder (or a duly appointed agent
thereof) from giving, before or after the expiration of such 90-day period, a notice, declaration
or direction contrary to or different from, or, after the expiration of such period, identical to,
the notice, declaration or direction to which such record date relates, in which event a new record
date in respect thereof shall be set pursuant to this paragraph. Nothing in this paragraph shall
be construed to render ineffective any notice, declaration or direction of the type referred to in
this paragraph given at any time to the Trustee and the Company by Holders (or their duly appointed
agents) of the requisite principal amount of Outstanding Securities of the relevant series on the
date such notice, declaration or direction is so given.

          Without limiting the foregoing, a Holder entitled hereunder to give or 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 different part of such principal amount.

     Section 1.05 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 (which may be via facsimile) 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 mailed, first-class
postage prepaid, to the Company addressed to it at the address of its principal office specified in
the first paragraph of this instrument or at any other address previously furnished in writing to
the Trustee by the Company.

     Section 1.06 Notice to Holders; Waiver.

          Where this Indenture provides for notice to Holders of any event, such notice shall be
sufficiently given (unless otherwise herein expressly provided) if in writing and mailed,
first-class postage prepaid, to each Holder affected by such event, at his address as it appears in
the Security Register, not later than the latest date (if any), and not earlier than the earliest
date (if

-10-

 

any), prescribed for the giving of such notice. In any case where notice to Holders is given
by mail, neither the failure to mail such notice, nor any defect in any notice so mailed, to any
particular Holder shall affect the sufficiency of such notice with respect to other Holders. Where
this Indenture provides for notice in any manner, such notice may be waived in writing by the
Person entitled to receive such notice, either before or after the event, and such waiver shall be
the equivalent of such notice. Waivers of notice by Holders shall be filed with the Trustee, but
such filing shall not be a condition precedent to the validity of any action taken in reliance upon
such waiver.

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

     Section 1.07 Conflict with Trust Indenture Act.

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

          “commission” means the United States Securities and Exchange Commission.

          “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 and any other obligor on the
Securities.

          All other Trust Indenture Act terms used in this Indenture that are defined by the Trust
Indenture Act, defined by the Trust Indenture Act referenced to another statute or defined by any
Commission Rule and not otherwise defined herein have the meanings defined to them thereby.

     Section 1.08 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.

-11-

 

     Section 1.09 Successors and Assigns.

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

     Section 1.10 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 1.11 Benefits of Indenture.

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

     Section 1.12 Governing Law.

          This Indenture and the Securities shall be governed by and construed in accordance with the
law of the State of New York, but without regard to principles of conflicts of laws.

     Section 1.13 Legal Holidays.

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

     Section 1.14 Waiver of Jury Trial.

          EACH OF THE COMPANY AND THE TRUSTEE HEREBY IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED
BY APPLICABLE LAW, ANY AND ALL RIGHT TO TRIAL BY JURY IN ANY LEGAL PROCEEDING ARISING OUT OF OR
RELATING TO THIS INDENTURE, THE NOTES OR THE TRANSACTION CONTEMPLATED HEREBY.

     Section 1.15 Force Majeure.

          In no event shall the Trustee 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

-12-

 

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 Trustee 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

SECURITY FORMS

     Section 2.01 Forms Generally.

          The Securities of each series shall be in substantially the form set forth in this Article, or
in such other form as shall be established by or pursuant to a Board Resolution or in one or more
indentures supplemental hereto, in each case with such appropriate insertions, omissions,
substitutions and other variations as are required or permitted by this Indenture, and may have
such letters, numbers or other marks of identification and such legends or endorsements placed
thereon as may be required to comply with the rules of any securities exchange or as may,
consistently herewith, be determined by the officers executing such Securities, as evidenced by
their execution of the Securities. If the form of Securities of any series is established by
action taken pursuant to a Board Resolution, 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 3.03 for the
authentication and delivery of such Securities.

          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 2.02 Form of Face of Security.

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

JEFFERIES GROUP, INC.

			
	 	 	 
	No.
	 	$                    

          Jefferies Group, Inc., a corporation duly organized and existing under the laws of Delaware
(herein called the “Company”, which term includes any successor Person under the Indenture
hereinafter referred to), for value received, hereby promises to pay to
                                        , or registered assigns, the principal sum of
                                          Dollars on                     
                     [if the Security is to bear interest prior to Maturity, insert —, and
to pay interest thereon from                      or from the most recent Interest

-13-

 

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 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.

-14-

 

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

Dated:

	 	 	 	 	 
	 	JEFFERIES GROUP, INC.

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

Attest:

                                                            

     Section 2.03 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
___, 2009 (herein called the “Indenture”), between the Company and The Bank of New
York Mellon, 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 — Subject to and upon compliance with the provisions of the
Indenture, the Holder of this Security is entitled, at his option, at any time on or before the
close of business on                 , or in case this Security or a portion hereof is
called for redemption, then in respect of this Security or such portion hereof until and including,
but (unless the Company defaults in making the payment due upon redemption) not after, the close of
business on the 10th calendar day before the Redemption Date, to convert this Security (or any
portion of the principal amount hereof which is $1,000 or an integral multiple thereof), at the
principal amount hereof, or of such portion, into fully paid and non-assessable shares (calculated
as to each conversion to the nearest 1/100 of a share) of Common Stock of the Company at a
conversion price per share of Common Stock equal to $              per each share of Common
Stock (or at the current adjusted conversion price if an adjustment has been made as provided in
the Indenture) by surrender of this Security, duly endorsed or assigned to the Company or in blank,
to the Company at its office or agency in                      , accompanied by written
notice to the Company that the Holder hereof elects to convert this Security, or if less than the
entire principal amount hereof is to be converted, the portion hereof to be converted, and, in case
such surrender shall be made during the period from the close of business on any Regular Record
Date next preceding any Interest Payment Date to the opening of business on such Interest Payment
Date (unless this Security or the portion thereof being converted has been called for redemption

-15-

 

on a Redemption Date within such period), also accompanied by payment in funds acceptable to
the Company of an amount equal to the interest payable on such Interest Payment Date on the
principal amount of this Security then being converted. Subject to the aforesaid requirement for
payment and, in the case of a conversion after the Regular Record Date next preceding any Interest
Payment Date and on or before such Interest Payment Date, to the right of the Holder of this
Security (or any Predecessor Security) of record at such Regular Record Date to receive an
installment of interest (with certain exceptions provided in the Indenture), no payment or
adjustment is to be made on conversion for interest accrued hereon or for dividends on the Common
Stock issued on conversion. No fractions of shares or scrip representing fractions of shares will
be issued on conversion, but instead of any fractional interest the Company shall pay a cash
adjustment as provided in the Indenture. The conversion price is subject to adjustment as provided
in the Indenture. In addition, the Indenture provides that in case of certain consolidations or
mergers to which the Company is a party or the transfer of substantially all of the assets of the
Company, the Indenture shall be amended, without the consent of any Holders of Securities, so that
this Security, if then outstanding, will be convertible thereafter, during the period this Security
shall be convertible as specified above, only into the kind and amount of securities, cash and
other property receivable upon the consolidation, merger or transfer by a holder of the number of
shares of Common Stock into which this Security might have been converted immediately prior to such
consolidation, merger or transfer (assuming such holder of Common Stock failed to exercise any
rights of election and received per share the kind and amount received per share by a plurality of
non-electing shares).]

     [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 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

-16-

 

Company, at the Redemption Prices for redemption otherwise than through operation of the
sinking fund (expressed as percentages of the principal amount) set forth in the table below: If
redeemed during the 12-month period beginning ___ of the years indicated,

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

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

          [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

-17-

 

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.]

          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 [Insert, if
applicable — or for enforcement of the right to convert this Security as provided in the
Indenture].

          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 or to convert this Security as provided in the Indenture.

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          As provided in the Indenture and subject to certain limitations therein set forth, the
transfer of this Security is registerable 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.

          [If applicable, insert —

[FORM OF CONVERSION NOTICE]

To: JEFFERIES GROUP, INC.

          The undersigned owner of this Security hereby irrevocably exercises the option to convert this
Security, or portion hereof (which is $1,000 or an integral multiple thereof) below designated,
into shares of Common Stock of Jefferies Group, Inc., in accordance with the terms of the Indenture
referred to in this Security, and directs that the shares issuable and deliverable upon the
conversion, together with any payment for fractional shares and any Securities, representing any
unconverted principal amount hereof, be issued and delivered to the registered holder hereof unless
a different name has been indicated below. If shares are to be issued in the name of a person
other than the undersigned, the undersigned will pay all transfer taxes payable with respect
thereto. Any amount required to be paid by the undersigned on account of interest accompanies this
Security.

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	Dated:
	 	 	 	 
	 
	 	 	 	 
	Fill in for
registration of shares of Common
Stock and
Securities if to be
issued otherwise
than to the
registered holder.

	 	Principal Amount to be converted (in an integral multiple of $1,000, if less
than all):

 $

	 	 	 	 	 
	 
	 	 	 	 
	Name
	 	 	 	 
	 	 	 	 	 
	 
	 	 	 	 
	Address

	 	 
	 	 	 
	 
	 	Signature
	 
	 	 	 	 
	(Please print name
and address,
including zip code
number)
	 	 	 	 
	 
	 	 	 	 
	SOCIAL SECURITY OR OTHER TAXPAYER IDENTIFYING NUMBER
	 	[SIGNATURE GUARANTEED required only if Common Stock and Securities are to be
issued and delivered to other than registered holder]

	 
	 	 	 	 
	[

	 	 	 	]
	 	 	 

     Section 2.04 Form of Legend for Global Securities.

          Unless otherwise specified as contemplated by Section 3.01 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
transferred to, or registered or exchanged for Securities registered in the name of, any Person
other than the Depositary or a nominee thereof and no such transfer may be registered, except in
the limited circumstances described in the Indenture. Every Security authenticated and delivered
upon registration of transfer of, or in exchange for or in lieu of, this Security shall be a Global
Security subject to the foregoing, except in such limited circumstances.

     Section 2.05 Form of Trustee’s Certificate of Authentication.

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

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

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	 	 	THE BANK OF NEW YORK MELLON, as Trustee	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	     Authorized Signatory	 	 
	 	 	Dated:	 	 

ARTICLE III

THE SECURITIES

     Section 3.01 Amount Unlimited; Issuable in Series.

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

          The Securities may be issued in one or more series. There shall be established in or pursuant
to a Board Resolution and, subject to Section 3.03, 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, including CUSIP Numbers (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 3.04, 3.05, 3.06, 9.06 or 11.07 and except for any Securities which, pursuant
to Section 3.03, are deemed never to have been authenticated and delivered hereunder);

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

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

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

               (6) the place or places where the principal of and any premium and interest on Securities of
the series shall be payable;

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

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

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

               (10) the currency, currencies or currency units in which payment of the principal of and any
premium and interest on any Securities of the series shall be payable if other than the currency of
the United States of America and the manner of determining the equivalent thereof in the currency
of the United States of America for purposes of the definition of “Outstanding” in Section 1.01;

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

               (12) if the principal of or any premium or interest on any Securities of the series is to be
payable, at the election of the Company or a Holder thereof, in one or more currencies or currency
units other than that or those in which the Securities are stated to be payable, the currency,
currencies or currency units in which payment of the principal of and any premium and interest on
Securities of such series as to which such election is made shall be payable, and the periods
within which and the terms and conditions upon which such election is to be made;

               (13) if other than the principal amount thereof, the portion of the principal amount of
Securities of the series which shall be payable upon declaration of acceleration of the Maturity
thereof pursuant to Section 5.02;

               (14) if and as applicable, that the 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 Depositary or Depositaries
for such Global Security or Global Securities and any circumstances other than those set forth in
Section 3.05 in which any such Global Security may be transferred to, and registered and exchanged
for Securities registered in the name of, a Person other than the Depositary for such Global
Security or a nominee thereof and in which any such transfer may be registered;

               (15) the terms and conditions, if any, pursuant to which the Securities are convertible into
Common Stock of the Company pursuant to Article XIII, and any variation thereof;

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               (16) the terms and conditions, if any, pursuant to which the Securities are convertible into
or exchangeable for any other securities; and

               (17) any addition to or change in the covenants set forth in Article X which applies to
Securities of the series; and

               (18) any other terms of the series (which terms shall not be inconsistent with the provisions
of this Indenture, except as permitted by Section 9.01(5)) and any deletions from or modifications
or additions to this Indenture or the form of the Securities in respect of such series.

          All Securities of any one series shall be substantially identical except as to denomination
and except as may otherwise be provided in or pursuant to the Board Resolution referred to above
and (subject to Section 3.03) set forth, or determined in the manner provided, in the Officers’
Certificate referred to above or in any such indenture supplemental hereto.

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

          The Company may, from time to time, by adoption of a Board Resolution and subject to
compliance with any other applicable provisions of this Indenture, without the consent of the
Holders, create and issue pursuant to this Indenture additional securities of any series of
Securities (“Add On Securities”) having terms and conditions identical to those of such series of
Outstanding Securities, except that such Add On Securities:

                    (i) may have a different issue date from such series of Outstanding Securities;

                    (ii) may have a different amount of interest payable on the first Interest Payment Date after
issuance than is payable on such series of Outstanding Securities; and

                    (iii) may have terms specified in such Board Resolution for such Add On Securities making
appropriate adjustments to this Article III applicable to such Add On Securities in order to
conform to and ensure compliance with the Securities Act (or applicable securities laws) which are
not adverse in any material respect to the Holder of any Outstanding Securities (other than such
Add On Securities) and which shall not affect the rights or duties of the Trustee.

     Section 3.02 Denominations.

          The Securities of each series shall be issuable only in registered form without coupons in
such denominations as shall be specified as contemplated by Section 3.01. 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.

     Section 3.03 Execution, Authentication, Delivery and Dating.

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          The Securities shall be executed on behalf of the Company by its Chairman of the Board, its
Vice Chairman of the Board, its President, one of its Vice Presidents or its Treasurer under its
corporate seal reproduced thereon attested by its Secretary or one of its Assistant Secretaries or
by its Chief Financial Officer. 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. In authenticating such Securities, and accepting the additional responsibilities
under this Indenture in relation to such Securities, the Trustee shall be provided with, and
(subject to Section 6.01) shall be fully protected in relying upon, an Opinion of Counsel stating:

               (1) if the form of such Securities has been established by or pursuant to Board Resolution as
permitted by Section 2.01, that such form has been established in conformity with the provisions of
this Indenture;

               (2) if the terms of such Securities have been established by or pursuant to Board Resolution
as permitted by Section 3.01, that such terms have been established in conformity with the
provisions of this Indenture; and

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

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

          Each Security shall be dated the date of its authentication.

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

-24-

 

provided in Section 3.09, for all purposes of this Indenture such Security shall be deemed
never to have been authenticated and delivered hereunder and shall never be entitled to the
benefits of this Indenture.

     Section 3.04 Temporary Securities.

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

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

     Section 3.05 Registration, Registration of Transfer and Exchange.

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

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

          At the option of the Holder, Securities of any series may be exchanged for other Securities of
the same series, of any authorized denominations and of a like aggregate principal amount and
tenor, upon surrender of the Securities to be exchanged at such office or agency.

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          Whenever any Securities are so surrendered for exchange, the Company shall execute, and the
Trustee shall authenticate and deliver, the Securities which the Holder making the exchange is
entitled to receive.

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

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

          No service charge shall be made for any registration of transfer or exchange of Securities,
but the Company or Security Registrar 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 3.04, 9.06 or 11.07 not involving
any transfer.

          The Company shall not be required (1) to issue, register the transfer of or exchange
Securities of any series during a period beginning at the opening of business 15 days before the
day of the mailing of a notice of redemption of Securities of that series selected for redemption
under Section 11.03 and ending at the close of business on the day of such mailing, or (2) to
register the transfer of or exchange any Security so selected for redemption in whole or in part,
except the unredeemed portion of any Security being redeemed in part.

          Notwithstanding any other provision in this Indenture, no Global Security may be transferred
to, or registered or exchanged for Securities registered in the name of, any Person other than the
Depositary for such Global Security or any nominee thereof, and no such transfer may be registered,
unless (1) such Depositary (A) notifies the Company that it is unwilling or unable to continue as
Depositary for such Global Security or (B) has ceased to be a clearing agency registered under the
Exchange Act, (2) the Company executes and delivers to the Trustee a Company Order that such Global
Security shall be so transferable, registrable and exchangeable, and such transfers shall be
registrable, (3) there shall have occurred and be continuing an Event of Default with respect to
the Securities evidenced by such Global Security or (4) there shall exist such other circumstances,
if any, as have been specified for this purpose as contemplated by Section 3.01. Notwithstanding
any other provision in this Indenture, a Global Security to which the restriction set forth in the
preceding sentence shall have ceased to apply may be transferred only to, and may be registered and
exchanged for Securities registered only in the name or names of, such Person or Persons as the
Depositary for such Global Security shall have directed and no transfer thereof other than such a
transfer may be registered.

          Every Security authenticated and delivered upon registration of transfer of, or in exchange
for or in lieu of, a Global Security to which the restriction set forth in the first sentence of
the preceding paragraph shall apply, whether pursuant to this Section, Section 3.04, 3.06, 9.06 or
11.07 or otherwise, shall be authenticated and delivered in the form of, and shall be, a Global
Security.

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     Section 3.06 Mutilated, Destroyed, Lost and Stolen Securities.

          If any mutilated Security is surrendered to the Trustee, the Company shall execute 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 the Trustee shall authenticate and deliver, in lieu of any
such destroyed, lost or stolen Security, a new Security of the same series and of like tenor and
principal amount and bearing a number not contemporaneously outstanding.

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

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

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

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

     Section 3.07 Payment of Interest; Interest Rights Preserved.

          Except as otherwise provided as contemplated by Section 3.01 with respect to any series of
Securities, interest on any Security which is payable, and is punctually paid or duly provided for,
on any Interest Payment Date shall be paid to the Person in whose name that Security (or one or
more Predecessor Securities) is registered at the close of business on the Regular Record Date for
such interest.

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

-27-

 

               (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 mailed, first-class postage prepaid, to each Holder of Securities of such series at
his address as it appears in the Security Register, not less than 10 days prior to such Special
Record Date. Notice of the proposed payment of such Defaulted Interest and the Special Record Date
therefor having been so mailed, such Defaulted Interest shall be paid to the Persons in whose names
the Securities of such series (or their respective Predecessor Securities) are registered at the
close of business on such Special Record Date and shall no longer be payable pursuant to the
following Clause (2).

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

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

          Subject to the provisions of Section 13.02, in the case of any Security which is converted
after any Regular Record Date and on or prior to the next succeeding Interest Payment Date,
interest whose Stated Maturity is on such Interest Payment Date shall be payable on such Interest
Payment Date notwithstanding such conversion, and such interest (whether or not punctually paid or
duly provided for) 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 such Regular Record Date. Except
as otherwise expressly provided in the immediately preceding sentence, in the case of any Security
which is converted, interest whose Stated Maturity is after the date of conversion of such Security
shall not be payable.

     Section 3.08 Persons Deemed Owners.

-28-

 

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

     Section 3.09 Cancellation.

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

     Section 3.10 Computation of Interest.

          Except as otherwise specified as contemplated by Section 3.01 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.

     Section 3.11 CUSIP Numbers.

          The Company in issuing the Securities may use “CUSIP” numbers (if then generally in use), and,
if so, the Trustee shall use “CUSIP” numbers in notices of redemption as a convenience to Holders;
provided that any such notice may state that no representation is made as to the correctness of
such numbers either as printed on the Securities or as contained in any notice of a redemption and
that reliance may be placed only on the other identification numbers printed on the Securities, and
any such redemption shall not be affected by any defect in or omission of such numbers. The
Company will promptly notify the Trustee of any changes in the “CUSIP” numbers.

ARTICLE IV

SATISFACTION AND DISCHARGE

     Section 4.01 Satisfaction and Discharge of Indenture.

          This Indenture shall upon Company Request cease to be of further effect (except as to any
surviving rights of conversion, registration of transfer or exchange of Securities herein

-29-

 

expressly provided for), and the Trustee, at the expense of the Company, shall execute proper
instruments acknowledging satisfaction and discharge of this Indenture, when either:

          (1) all Securities theretofore authenticated and delivered (other than (i) Securities
which have been destroyed, lost or stolen and which have been replaced or paid as provided
in Section 3.06 and (ii) Securities for whose payment money has theretofore been deposited
in trust or segregated and held in trust by the Company and thereafter repaid to the Company
or discharged from such trust) have been delivered to the Trustee for cancellation; or

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

                    (i) have become due and payable, or

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

                    (iii) are to be called for redemption within one year under arrangements satisfactory to the
Trustee for the giving of notice of redemption by the Trustee in the name, and at the expense, of
the Company,

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

               (3) the Company has paid or caused to be paid all other sums payable hereunder by the Company;
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 have been complied with.

     Notwithstanding the satisfaction and discharge of this Indenture, the obligations of the
Company to the Trustee under Section 6.07, and, if money shall have been deposited with the Trustee
pursuant to subclause (ii) of Clause (1) of this Section, the obligations of the Trustee under
Section 4.02 shall survive such satisfaction and discharge.

   Section 4.02 Application of Trust Money.

          All money deposited with the Trustee pursuant to Section 4.01 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 for whose payment such money has been deposited with the Trustee. All
money deposited with the Trustee pursuant to Section 4.01 (and held by it or any Paying

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Agent) for payment of Securities of a series that is convertible in accordance with Article
XIII and that are subsequently converted, shall be returned to the Company.

ARTICLE V

REMEDIES

     Section 5.01 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
voluntary or involuntary or be effected by operation of law or pursuant to any judgment, decree or
order of any court or any order, rule or regulation of any administrative or governmental body):

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

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

               (3) default in the deposit of any sinking fund payment, when and as due by the terms of a
Security of that series, 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 specifically dealt with or which has expressly been included in this
Indenture solely for the benefit of series of Securities other than that series), and continuance
of such default or breach for a period of 90 days after there has been given, by 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 Company shall fail to pay any Indebtedness in excess of $10,000,000 owing by the
Company, or any interest or premium thereon, when due (whether by scheduled maturity, required
prepayment, acceleration, demand or otherwise), and such failure shall continue after the
applicable grace period, if any, specified in the agreement or instrument relating to such
Indebtedness, or the Company shall fail to perform any term, covenant or agreement on its part to
be performed under any agreement or instrument evidencing or securing or relating to any such
Indebtedness, if the effect of such failure in either case is that the maturity of such
Indebtedness is duly accelerated, without such Indebtedness having been discharged or such
acceleration having been rescinded or annulled, in each such case, within a period of 10 days after
there shall have been given, by registered or certified mail, to the Company by the Trustee or to
the Company and the Trustee by Holders of at least 25% in principal amount of the Outstanding
Securities of that series, a written notice specifying such default and requiring the Company to
cause such Indebtedness to be discharged or cause such acceleration to be rescinded or annulled, as
the case may be, and stating that such notice is a “Notice of Default” hereunder

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(the Trustee shall not be deemed to have knowledge of a default under this subsection (5)
unless it shall have actual knowledge thereof); provided, however, that, subject to the provisions
of Sections 6.01 and 6.05, the Trustee shall not be deemed to have knowledge of such failure to pay
unless either (A) a Responsible Officer of the Trustee shall have actual knowledge of such failure
to pay or (B) the Trustee shall have received written notice thereof from the Company, from any
Holder, from the holder of any such Indebtedness or from the trustee thereunder; or

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

               (7) the commencement by the Company of a voluntary case or proceeding under any applicable
Federal or State bankruptcy, insolvency, reorganization or other similar law or of any other case
or proceeding to be adjudicated a bankrupt or insolvent, or the consent by it to the entry of a
decree or order for relief in respect of the Company in an involuntary case or proceeding under any
applicable Federal or State bankruptcy, insolvency, reorganization or other similar law or to the
commencement of any bankruptcy or insolvency case or proceeding against it, or the filing by it of
a petition or answer or consent seeking reorganization or relief under any applicable Federal or
State law, or the consent by it to the filing of such petition or to the appointment of or taking
possession by a custodian, receiver, liquidator, assignee, trustee, sequestrator or other similar
official of the Company or of any substantial part of its property, or the making by it of an
assignment for the benefit of creditors, or the admission by it in writing of its inability to pay
its debts generally as they become due, or the taking of corporate action by the Company in
furtherance of any such action; or

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

     Section 5.02 Acceleration of Maturity; Rescission and Annulment.

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

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

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

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

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

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

                    (iv) all sums paid or advanced by the Trustee hereunder and the reasonable compensation,
expenses, disbursements and advances of the Trustee, its agents and counsel; and

               (2) all Events of Default with respect to Securities of that series, other than the
non-payment of the principal of Securities of that series which have become due solely by such
declaration of acceleration, have been cured or waived as provided in Section 5.13.

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

     Section 5.03 Collection of Indebtedness and Suits for Enforcement by Trustee.

          The Company covenants that if:

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

               (2) default is made in the payment of the principal of (or 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 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, at
the rate or rates prescribed therefor in such Securities, and, in addition thereto, such further
amount as shall be sufficient to cover the costs and expenses of collection, including the
reasonable compensation, expenses, disbursements and advances of the Trustee, its agents and
counsel.

          If an Event of Default with respect to Securities of any series occurs and is continuing, the
Trustee may in its discretion proceed to protect and enforce its rights and the rights of the
Holders of Securities of such series by such appropriate judicial proceedings as the Trustee shall

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deem necessary 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 5.04 Trustee May File Proofs of Claim.

          In case of any judicial proceeding relative to the Company (or any other obligor upon the
Securities), its property or its creditors, the Trustee shall be entitled and empowered, by
intervention in such proceeding or otherwise, to take any and all actions authorized under the
Trust Indenture Act in order to have claims of the Holders and the Trustee allowed in any such
proceeding. In particular, the Trustee shall be authorized to collect and receive any moneys or
other property payable or deliverable on any such claims and to distribute the same; and any
custodian, receiver, assignee, trustee, liquidator, sequestrator or other similar official in any
such judicial proceeding is hereby authorized by each Holder to make such payments to the Trustee
and, in the event that the Trustee shall consent to the making of such payments directly to the
Holders, to pay to the Trustee any amount due it for the reasonable compensation, expenses,
disbursements and advances of the Trustee, its agents and counsel, and any other amounts due the
Trustee under Section 6.07.

          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 5.05 Trustee May Enforce Claims Without Possession of Securities.

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

     Section 5.06 Application of Money Collected.

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

          FIRST: To the payment of all amounts due the Trustee under Section 6.07;

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

          THIRD: To the Company.

     Section 5.07 Limitation on Suits.

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

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

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

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

     Section 5.08 Unconditional Right of Holders to Receive Principal, Premium and Interest and
to Convert.

          Notwithstanding any other provision in this Indenture, the Holder of any Security shall have
the right, which is absolute and unconditional, to receive payment of the principal of and any
premium and (subject to Section 3.07) interest on such Security on the respective Stated Maturities
expressed in such Security (or, in the case of redemption, on the Redemption Date) and to convert
such Security in accordance with Article XIII and to institute suit for the enforcement of any such
payment and right to convert, and such rights shall not be impaired without the consent of such
Holder.

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     Section 5.09 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 with respect to the replacement or payment of mutilated,
destroyed, lost or stolen Securities in the last paragraph of Section 3.06, 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 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.

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

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

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

               (3) subject to the provisions of Section 6.01, the Trustee shall have the right to decline to
follow any such direction if the Trustee in good faith share, by a Responsible Officer or Officers
of the Trustee, determine, and the Trustee shall have received a legal opinion stating, that the
proceedings so directed would involve the Trustee in personal liability.

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     Section 5.13 Waiver of Past Defaults.

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

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

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

          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, including legal fees and expenses, against any such party litigant, in the manner and
to the extent provided in the Trust Indenture Act; provided that neither this Section nor the Trust
Indenture Act shall apply to any suit instituted by the Trustee, to any suit instituted by any
Holders of the Securities, or group of Holders of the Securities, holding in the aggregate more
than 10% of principal amount of the Outstanding Securities of any series, or to any suit instituted
by any Holder of the Outstanding Securities for the enforcement of the payment of principal of or
interest on any Outstanding Securities held by such Holder, on or after the respective due dates
expressed in such Outstanding Securities, and provided, further, that neither this Section nor the
Trust Indenture Act shall be deemed to authorize any court to require such an undertaking or to
make such an assessment in any suit instituted by the Company or, if applicable, in any suit for
the enforcement of the right to convert any Security in accordance with Article XIII.

     Section 5.15 Waiver of Usury, 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
usury, stay or extension law wherever enacted, now or at any time hereafter in force, which may
affect the covenants or the performance of this Indenture; and the Company (to the extent that it
may lawfully do so) hereby expressly waives all benefit or advantage of any such law and covenants
that it will not hinder, delay or impede the execution of any power herein granted to the Trustee,
but will suffer and permit the execution of every such power as though no such law had been
enacted.

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ARTICLE VI

THE TRUSTEE

          The Trustee hereby accepts the trust imposed upon it by this Indenture and covenants and
agrees to perform the same, as herein expressed.

     Section 6.01 Duties of Trustee.

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

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

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

                    (ii) In the absence of bad faith on its part, the Trustee may conclusively rely, as to the
truth of the statements and the correctness of the opinions expressed therein, upon certificates or
opinions furnished to the Trustee and conforming to the requirements of this Indenture. However,
in the case of any such certificates or opinions which by any provision hereof are specifically
required to be furnished to the Trustee, the Trustee shall be under a duty to examine the same to
determine whether or not they substantially conform to the requirements of this Indenture (but need
not confirm or investigate the accuracy of 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, except that:

                    (i) This paragraph does not limit the effect of paragraph (2) of this Section 6.01.

                    (ii) 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.

                    (iii) The Trustee shall not be liable with respect to any action it takes or omits to take in
good faith in accordance with a direction received by it pursuant to Section 5.12.

               (4) No provision of this Indenture shall require the Trustee to expend or risk its own funds
or otherwise incur any financial liability in the performance of any of its duties hereunder or to
take or omit to take any action under this Indenture.

               (5) Every provision of this Indenture that in any way relates to the Trustee is subject to
paragraphs (1), (2), (3), (4) and (6) of this Section 6.01.

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

     Section 6.02 Rights of Trustee.

          Subject to Section 6.01:

               (1) The Trustee may conclusively rely on any document (whether in its original or facsimile
form) believed by it to be genuine and to have been signed or presented by the proper person. The
Trustee need not investigate any fact or matter stated in any document.

               (2) Before the Trustee acts or refrains from acting, it may require an Officers’ Certificate
or an Opinion of Counsel. The Trustee shall not be liable for any action it takes or omits to take
in good faith in reliance on such certificate or opinion.

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

               (4) The Trustee shall not be liable for any action it takes or omits to take in good faith
which it believes to be authorized or within its rights or powers.

               (5) The Trustee shall not be bound to make any investigation into the facts or matters stated
in any resolution, certificate, statement, instrument, opinion, notice, request, direction,
consent, order, bond, debenture, 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 at the
sole cost of the Company and shall incur no liability or additional liability of any kind by reason
of such investigation.

               (6) The Trustee shall be under no obligation to exercise any of the rights or powers vested in
it by this Indenture at the request, order or direction of any of the Holders, pursuant to the
provisions of this Indenture, unless such Holders shall have offered to the Trustee reasonable
security or indemnity satisfactory to it against the costs, expenses and liabilities which may be
incurred therein or thereby.

               (7) the Trustee 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 of any action taken,
suffered or omitted by in hereunder in good faith and in reliance thereon.

               (8) the Trustee shall not be deemed to have notice of any Event of Default unless a
Responsible Officer of the Trustee has actual knowledge thereof or unless written notice of any
event which is in fact such a default is received by the Trustee at the Corporate Trust Office of
the Trustee, and such notice references the Securities and this Indenture.

               (9) the rights, privileges, protections, immunities and benefits given to the Trustee,
including, without limitation, its right to be indemnified, are extended to, and shall be

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enforceable by, the Trustee in each of its capacities hereunder, and each agent, custodian and
other Person employed to act hereunder.

               (10) in no event shall the Trustee be responsible or liable for special, indirect, or
consequential loss or damage of any kind whatsoever (including, but not limited to, loss of profit)
irrespective of whether the Trustee has been advised of the likelihood of such loss or damage and
regardless of the form of action.

     Section 6.03 Individual Rights of Trustee.

          The Trustee in its individual or any other capacity may become the owner or pledgee of
Securities and may otherwise deal with the Company, its Subsidiaries, or their respective
Affiliates with the same rights it would have if it were not Trustee. Any Paying Agent or Security
Registrar may do the same with like rights. However, the Trustee must comply with Sections 6.08,
6.09 and 6.10.

     Section 6.04 Trustee’s Disclaimer.

          The Trustee makes no representation as to the validity or adequacy of this Indenture or the
Securities and it shall not be accountable for the Company’s use of the proceeds from the
Securities, and it shall not be responsible for any statement in the Securities, other than the
Trustee’s certificate of authentication, or the use or application of any funds received by a
Paying Agent other than the Trustee.

     Section 6.05 Notice of Default.

          If an Event of Default with respect to Securities of any series occurs and is continuing and
if it is known to the Trustee, the Trustee shall mail to each Holder of Securities of such series
notice of the uncured Event of Default within 90 days after such Event of Default occurs. Except
in the case of an Event of Default in payment of principal (or premium, if any) of, or interest on,
any Security, the Trustee may withhold the notice if and so long as a Responsible Officer in good
faith determines that withholding the notice is in the interest of the Holders of Securities of
such series.

     Section 6.06 Reports by Trustee to Holders.

          Within 60 days after each February 15 beginning with the February 15 following the date of
this Indenture, the Trustee shall mail to each Holder a brief report dated as of such February 15
that complies with Trust Indenture Act Section 313(a) if such report is required by such Trust
Indenture Act Section 313(a). The Trustee also shall comply with Trust Indenture Act Sections
313(b) and 313(c).

          The Company shall promptly notify the Trustee in writing if the Securities of any series
become listed on any stock exchange or automatic quotation system.

          A copy of each report at the time of its mailing to Holders shall be mailed to the Company and
filed with the Commission and each stock exchange, if any, on which the Securities are listed.

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     Section 6.07 Compensation and Indemnity.

          The Company shall pay to the Trustee from time to time such compensation for its services as
the Company and the Trustee shall from time to time agree in writing. 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 disbursements, expenses and advances incurred or
made by it. Such expenses shall include the reasonable compensation, disbursements and expenses of
the Trustee’s agents, accountants, experts and counsel.

          The Company shall indemnify each of the Trustee (in its capacity as Trustee) and any
predecessor Trustee and each of their respective officers, directors, attorneys-in-fact and agents
for, and hold it harmless against, any claim, demand, expense (including but not limited to
reasonable compensation, disbursements and expenses of the Trustee’s agents and counsel), loss,
charges (including taxes (other than taxes based upon the income of the Trustee)) or liability
incurred by them, arising out of or in connection with the acceptance or administration of this
trust and their rights or duties hereunder including the reasonable costs and expenses of defending
themselves against any claim or liability in connection with the exercise or performance of any of
its powers or duties hereunder. The Trustee shall notify the Company promptly of any claim
asserted against the Trustee for which it may seek indemnity and of which a Responsible Officer has
received written notice. The Company shall defend the claim and the Trustee shall provide
reasonable cooperation at the Company’s expense in the defense. The Trustee may have separate
counsel and the Company shall pay the reasonable fees and expenses of such counsel. The Company
need not pay for any settlement made without its written consent which consent shall not be
unreasonably withheld. The Company need not reimburse any expense or indemnify against any loss or
liability to the extent incurred by the Trustee as determined by a court of competent jurisdiction
to have been caused by its own negligence or willful misconduct.

          To secure the Company’s payment obligations in this Section 6.07, the Trustee shall have a
lien prior to the Securities on all assets held or collected by the Trustee, in its capacity as
Trustee, except assets held in trust to pay principal and premium, if any, of or interest on
particular Securities.

          When the Trustee incurs expenses or renders services after an Event of Default specified in
Section 5.01(6) or (7) occurs, the expenses and the compensation for the services are intended to
constitute expenses of administration under any Bankruptcy Law.

          The Company’s obligations under this Section 6.07 and any lien arising hereunder shall survive
the resignation or removal of the Trustee, the discharge of the Company’s obligations pursuant to
Article IV of this Indenture and any rejection or termination of this Indenture under any
Bankruptcy Law.

     Section 6.08 Replacement of Trustee.

          The Trustee may resign at any time with respect to the Securities of one or more series by so
notifying the Company in writing. The Holder or Holders of a majority in principal amount of the
outstanding Securities of a series may remove the Trustee with respect to Securities of such

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series by so notifying the Company and the Trustee in writing and may appoint a successor
trustee with respect to Securities of such series with the Company’s consent. The Company may
remove the Trustee if:

               (1) the Trustee fails to comply with Section 6.10;

               (2) the Trustee is adjudged bankrupt or insolvent;

               (3) a receiver, custodian, or other public officer takes charge of the Trustee or its
property; or

               (4) the Trustee becomes incapable of acting.

          If the Trustee resigns or is removed or if a vacancy exists in the office of Trustee, with
respect to the Securities of one or more series, for any reason, the Company shall promptly appoint
a successor Trustee, with respect to Securities of that or those series. Within one year after the
successor Trustee with respect to a series of Securities takes office, the Holder or Holders of a
majority in principal amount of the Securities of such series may appoint a successor Trustee with
respect to such series to replace the successor Trustee appointed by the Company.

          A successor Trustee shall deliver a written acceptance of its appointment to the retiring
Trustee and to the Company. Immediately after that and provided that all sums owing to the Trustee
provided for in Section 6.07 have been paid, the retiring Trustee shall transfer all property held
by it as Trustee with respect to such series of Securities to the successor Trustee, subject to the
lien provided in Section 6.07, the resignation or removal of the retiring Trustee shall become
effective, and the successor Trustee shall have all the rights, powers and duties of the Trustee
under this Indenture. A successor Trustee with respect to one or more series of Securities shall
mail notice of its succession to each Holder of Securities of that or those series.

          If a successor Trustee with respect to a series of Securities does not take office within 60
days after the retiring Trustee resigns or is removed, the retiring Trustee, the Company or the
Holder or Holders of at least 10% in principal amount of the outstanding Securities of that series
may petition at the expense of the Company any court of competent jurisdiction for the appointment
of a successor Trustee with respect to such series.

          If the Trustee fails to comply with Section 6.10, any Holder of Securities of a series may
petition any court of competent jurisdiction for the removal of the Trustee with respect to such
series and the appointment of a successor Trustee with respect to such series.

          Notwithstanding replacement of the Trustee pursuant to this Section 6.08, the Company’s
obligations under Section 6.07 shall continue for the benefit of the retiring Trustee.

     Section 6.09 Successor Trustee by Merger, Etc.

          If the Trustee consolidates with, merges or converts into, or transfers all or substantially
all of its corporate trust business to, another corporation, the resulting, surviving or transferee

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corporation without any further act shall, if such resulting, surviving or transferee
corporation is otherwise eligible hereunder, be the successor Trustee.

     Section 6.10 Eligibility; Disqualification.

          The Trustee shall at all times satisfy the requirements of Trust Indenture Act Section
310(a)(1) and Trust Indenture Act Section 310(a)(5).

          The Trustee shall have a combined capital and surplus of at least $50,000,000 as set forth in
its most recent published annual report of condition. The Trustee shall comply with Trust
Indenture Act Section 310(b); provided, however, that there shall be excluded from the operation of
such Section 310(b) the Indenture dated as of March 12, 2002, between the Company and The Bank of
New York Mellon pertaining to the Company’s Senior Securities, the Indenture dated as of August 18,
1997, between the Company and The Bank of New York Mellon pertaining to the Company’s 7% Senior
Notes due 2007 and the Indenture dated as of April 28, 1994, between the Company and The Bank of
New York Mellon pertaining to the Company’s 8 7/8% Senior Notes due 2004.

     Section 6.11 Preferential Collection of Claims against Company.

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

ARTICLE VII

HOLDERS’ LISTS AND REPORTS BY TRUSTEE AND COMPANY

     Section 7.01 Company to Furnish Trustee Names and Addresses of Holders.

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

               (1) semi-annually, not more than 15 days after each Regular Record Date, a list for each
series of Securities, in such form as the Trustee may reasonably require, of the names and
addresses of the Holders of Securities of such series as of the Regular Record 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; excluding from any such list names and
addresses received by the Trustee in its capacity as Security Registrar.

     Section 7.02 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 7.01 and the names and addresses of Holders received by the Trustee in its capacity as

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Security Registrar. The Trustee may destroy any list furnished to it as provided in Section
7.01 upon receipt of a new list so furnished.

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

          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 7.03 Reports by Trustee.

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

          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 or delisted therefrom.

     Section 7.04 Reports by Company.

          The Company shall file with the Trustee and the Commission, and transmit to Holders, such
information, documents and other reports, and such summaries thereof, as may be required pursuant
to the Trust Indenture Act at the times and in the manner provided pursuant to such Act; provided
that any such information, documents or reports required to be filed with the Commission pursuant
to Section 13 or 15(d) of the Securities Exchange Act of 1934 shall be filed with the Trustee
within 15 days after the same is so required to be filed with the Commission. Delivery of such
reports, information and documents to the Trustee is for informational purposes only and the
Trustee’s receipt of such shall not constitute constructive notice of any information contained
therein or determinable from information contained therein, including the Company’s compliance with
any of its covenants hereunder (as to which the Trustee is entitled to rely exclusively on
Officer’s Certificates.)

ARTICLE VIII

CONSOLIDATION, MERGER, CONVEYANCE, TRANSFER OR LEASE

     Section 8.01 When Company May Merge, Etc.

          The Company may not, in a single transaction or through a series of related transactions,
consolidate with or merge with or into any other person, or, directly or indirectly, sell, lease,
assign, transfer or convey its properties and assets as an entirety or substantially as an entirety
(computed on a consolidated basis) to another person or group of affiliated persons, and another
person or group of affiliated persons may not directly or indirectly sell, lease, assign, transfer
or

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convey its properties and assets as an entity or substantially as an entity (computed on a
consolidated basis) to the Company, unless:

               (1) the Company shall be the continuing person, or the person (if other than the Company)
formed by such consolidation or into which the Company is merged or to which all or substantially
all of the properties and assets of the Company are transferred as an entirety or substantially as
an entirety (the Company or such other person being hereinafter referred to as the “Surviving
Person”), shall be a corporation organized and validly existing under the laws of the United
States, any State thereof or the District of Columbia, and shall expressly assume, by an indenture
supplemental hereto, executed and delivered to the Trustee, in form and substance satisfactory to
the Trustee, all the obligations of the Company under the Securities and this Indenture and the
Indenture, so supplemented, shall remain in full force and effect;

               (2) immediately after giving effect to such transaction and the assumption of the obligations
as set forth in clause (1), above, no Event of Default shall have occurred and be continuing; and

               (3) if a supplemental indenture is required in connection with such transaction, the Company
has delivered to the Trustee an Officers’ Certificate and an Opinion of Counsel, each stating that
such consolidation, merger, assignment, or transfer and such supplemental indenture comply with
this Article VIII and that all conditions precedent herein provided relating to such transaction
have been satisfied.

     Section 8.02 Successor Corporation Substituted.

          Upon any consolidation or merger, or any transfer of assets in accordance with Section 8.01,
the Surviving Person formed by such consolidation or into which the Company is merged or to which
such transfer 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 Surviving Person had
been named as the Company herein. When a Surviving Person duly assumes all of the obligations of
the Company pursuant hereto and pursuant to the Securities, the predecessor shall be relieved of
the performance and observance of all obligations and covenants of this Indenture and the
Securities, including but not limited to the obligation to make payment of the principal of and
interest, if any, on all the Securities then outstanding, and the Company may thereupon or any time
thereafter be liquidated and dissolved.

ARTICLE IX

SUPPLEMENTAL INDENTURES

     Section 9.01 Supplemental Indentures Without Consent of Holders.

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

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

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

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

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

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

               (6) to secure the Securities pursuant to the requirements of Article X or otherwise; or

               (7) to establish the form or terms of Securities of any series as permitted by Sections 2.01
and 3.01; 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 make provisions with respect to the conversion rights of Holders pursuant to the
requirements of Article XIII;

               (10) to cure any ambiguity, to correct or supplement any provision herein which may be
defective or inconsistent with any other provision herein, or to make any other provisions with
respect to matters or questions arising under this Indenture, provided that such action pursuant to
this clause (9) shall not adversely affect the interests of the Holders of Securities of any series
in any material respect.

     Section 9.02 Supplemental Indentures with Consent of Holders.

          With the consent of the Holders of not less than a majority in principal amount of the
Outstanding Securities of each series affected by such supplemental indenture, by Act of said

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Holders delivered to the Company and the Trustee, the Company, when authorized by a Board
Resolution, and the Trustee may enter into an indenture or indentures supplemental hereto for the
purpose of adding any provisions to or changing in any manner or eliminating any of the provisions
of this Indenture or of modifying in any manner the rights of the Holders of Securities of such
series under this Indenture; provided, however, that no such supplemental indenture shall, without
the consent of the Holder of each Outstanding Security affected thereby,

               (1) change the Stated Maturity of the principal of, or any installment of principal of or
interest on, any Security, or reduce the principal amount thereof or the rate of interest or the
time of payment of interest thereon or any premium payable upon the redemption thereof, or reduce
the amount of the principal of an Original Issue Discount Security that would be due and payable
upon a declaration of acceleration of the Maturity thereof pursuant to Section 5.02, or change any
Place of Payment where, or the coin or currency in which, any Security or any premium or interest
thereon is payable, or impair the right to institute suit for the enforcement of any such payment
on or after the Stated Maturity thereof (or, in the case of redemption, on or after the Redemption
Date), or adversely affect the right to convert any Security as provided in Article XIII or modify
the provisions of this Indenture with respect to the subordination of the Securities in a manner
adverse to the Holders, 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 or Section 5.13, except to increase any such
percentage or to provide that certain other provisions of this Indenture cannot be modified or
waived without the consent of the Holder of each Outstanding Security affected thereby, provided,
however, that this clause shall not be deemed to require the consent of any Holder with respect to
changes in the references to “the Trustee” and concomitant changes in this Section, or the deletion
of this proviso, in accordance with the requirements of Sections 6.11 and 9.01(8), or

               (4) change any obligation of ours to maintain an office or agency, or

               (5) change any obligation of ours to pay additional amounts, or

               (6) adversely affect the right of repayment or repurchase at the option of the Holder, or

               (7) reduce or postpone any sinking fund or similar provision.

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 9.03 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 provided with, and (subject to Section 6.01) shall be fully protected in relying
upon, an Opinion of Counsel stating that the execution of such supplemental indenture is authorized
or permitted by this Indenture. The Trustee may, but shall not be obligated to, enter into any
such supplemental indenture which affects the Trustee’s own rights, duties or immunities under this
Indenture or otherwise.

     Section 9.04 Effect of Supplemental Indentures.

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

     Section 9.05 Conformity with Trust Indenture Act.

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

     Section 9.06 Reference in Securities to Supplemental Indentures.

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

ARTICLE X

COVENANTS

     Section 10.01 Payment of Securities.

          The Company covenants and agrees for the benefit of each series of Securities that it will pay
the principal of and interest on the Securities of that series on the dates and in the manner
provided in the Securities of that series and this Indenture. An installment of principal,
premium, if any, or interest on the Securities shall be considered paid on the date it is due if
the Trustee or Paying Agent (other than the Company or an Affiliate of the Company) holds for the
benefit of

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the Holders, on that date, immediately available funds deposited and designated for and
sufficient to pay the installment.

          The Company shall pay interest on overdue principal and on overdue installments of interest at
the rate specified in the Securities compounded semi-annually, to the extent lawful.

     Section 10.02 Maintenance of Office or Agency.

          The Company shall maintain in the 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, where
Securities of any series that is convertible may be surrendered for conversion, 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 shall give prompt written notice to the Trustee of the location, and
any change in the location, of such office or agency. If at any time the Company shall fail to
maintain any such required office or agency or shall fail to furnish the Trustee with the address
thereof, such presentations, surrenders, notices and demands may be made or served at the Corporate
Trust Office.

          The Company may also from time to time designate one or more other offices or agencies where
the Securities of one or more series may be presented or surrendered for any or all such purposes
and may from time to time rescind such designations; provided, however, that no such designation or
rescission shall in any manner relieve the Company of its obligation to maintain an office or
agency in each Place of Payment for Securities of any series for such purposes. The Company shall
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. The Company hereby initially designates the
principal corporate trust office of the Trustee as such office of the Company.

     Section 10.03 Money for Securities Payments to Be Held in Trust.

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

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

          The Company will cause each Paying Agent for any series of Securities other than the Trustee
to execute and deliver to the Trustee an instrument in which such Paying Agent shall agree with the
Trustee, subject to the provisions of this Section, that such Paying Agent will (1) comply with the
provisions of the Trust Indenture Act applicable to it as a Paying Agent and (2)

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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 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 any Security of any series
and remaining unclaimed for two years after such principal, premium or interest has become due and
payable shall be paid to the Company on Company Request, or (if then held by the Company) shall be
discharged from such trust; and the Holder of such Security shall thereafter, as an unsecured
general creditor, look only to the Company for payment thereof, and all liability of the Trustee or
such Paying Agent with respect to such trust money, and all liability of the Company as trustee
thereof, shall thereupon cease; provided, however, that the Trustee or such Paying Agent, before
being required to make any such repayment, may at the expense of the Company cause to be published
once, in a newspaper published in the English language, customarily published on each Business Day
and of general circulation in New York City, notice that such money remains unclaimed and that,
after a date specified therein, which shall not be less than 30 days from the date of such
publication, any unclaimed balance of such money then remaining will be repaid to the Company.

     Section 10.04 Corporate Existence.

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

     Section 10.05 Payment of Taxes and Other Claims.

          The Company shall, and shall cause each of its Subsidiaries to, pay or discharge or cause to
be paid or discharged, before the same shall become delinquent, (i) all taxes, assessments and
governmental charges (including withholding taxes and any penalties, interest and additions to
taxes) levied or imposed upon the Company or any of its Subsidiaries or properties and assets of
the Company or any of its Subsidiaries and (ii) all lawful claims, whether for labor, materials,

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supplies, service or anything else, which have become due and payable and which by law have or
may become a Lien upon the property and assets of the Company or any of its Subsidiaries; 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 whose amount, applicability or validity is
being contested in good faith by appropriate proceedings and for which disputed amounts adequate
reserves have been established in accordance with generally accepted accounting principles.

     Section 10.06 Compliance Certificate; Notice of Default.

               (1) The Company shall deliver to the Trustee within 120 days after the end of its fiscal year
an Officers’ Certificate (one of the signatories of which shall be the Company’s principal
executive officer, principal financial officer or principal accounting officer) complying with
Section 314(a)(4) of the Trust Indenture Act and stating that a review of its activities and the
activities of its Subsidiaries during the preceding fiscal year has been made under the supervision
of the signing officers with a view to determining whether the Company has kept, observed,
performed and fulfilled its obligations under this Indenture (all without regard to periods of
grace, which shall be deemed fulfilled unless and until the expiration of such periods) or notice
requirements) and further stating, as to each such officer signing such certificate, whether or not
the signer knows of any failure by the Company or any Subsidiary of the Company to comply with any
conditions or covenants in this Indenture and, if such signer does know of such a failure to
comply, the certificate shall describe such failure with particularity. The Officers’ Certificate
shall also notify the Trustee should the relevant fiscal year end on any date other than the
current fiscal year end date.

               (2) The Company shall, so long as any of the Securities of any series are outstanding, deliver
to the Trustee, immediately upon becoming aware of any Event of Default with respect to such series
under this Indenture, an Officers’ Certificate specifying such Event of Default and what action the
Company is taking or proposes to take with respect thereto. The Trustee shall not be deemed to
have knowledge of an Event of Default unless one of its Responsible Officers receives notice of the
Event of Default giving rise thereto from the Company or any of the Holders.

     Section 10.07 Waiver of Stay, Extension or Usury Laws.

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

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ARTICLE XI

REDEMPTION OF SECURITIES

     Section 11.01 Applicability of Article.

          Securities of any series which are redeemable before their Stated Maturity shall be redeemable
in accordance with their terms and (except as otherwise specified as contemplated by Section 3.01
for Securities of any series) in accordance with this Article.

     Section 11.02 Election to Redeem; Notice to Trustee.

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

     Section 11.03 Selection by Trustee of Securities to Be Redeemed.

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

          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.
Securities which have been converted during a selection of Securities to be redeemed shall be
treated by the Trustee as Outstanding for the purpose of such selection.

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

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

     Section 11.04 Notice of Redemption.

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

          All notices of redemption shall state:

               (1) the Redemption Date,

               (2) the Redemption Price,

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

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

               (5) in the case of any Securities that are convertible pursuant to Article XIII, the
conversion price or rate, the date on which the right to convert the principal of the Securities to
be redeemed will terminate and the place or places where such Securities may be surrendered for
conversion;

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

               (7) that the redemption is for a sinking fund, if such is the case, and

               (8) applicable CUSIP Numbers.

          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 and shall be irrevocable.

     Section 11.05 Deposit of Redemption Price.

          Prior to any Redemption Date, the Company shall deposit with the Trustee or with a Paying
Agent 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 other than any Securities called for redemption on that date which have been
converted prior to the date of such deposit.

-53-

 

          If any Security called for redemption is converted, any money deposited with the Trustee or
with any Paying Agent or so segregated and held in trust for the redemption of such Security shall
(subject to any right of the Holder of such Security or any Predecessor Security to receive
interest as provided in the last paragraph of Section 3.07) be paid to the Company upon Company
Request or, if then held by the Company, shall be discharged from such trust.

     Section 11.06 Securities Payable on Redemption Date.

          Notice of redemption having been given as aforesaid, the Securities so to be redeemed shall,
on the Redemption Date, become due and payable at the Redemption Price therein specified, and from
and after such date (unless the Company shall default in the payment of the Redemption Price and
accrued interest) such Securities shall cease to bear interest. Upon surrender of any such
Security for redemption in accordance with said notice, such Security shall be paid by the Company
at the Redemption Price, together with accrued interest to the Redemption Date; provided, however,
that, unless otherwise specified as contemplated by Section 3.01, installments of interest whose
Stated Maturity is on or prior to the Redemption Date shall be payable to the Holders of such
Securities, or one or more Predecessor Securities, registered as such at the close of business on
the relevant Record Dates according to their terms and the provisions of Section 3.07.

          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.

     Section 11.07 Securities Redeemed in Part.

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

ARTICLE XII

SINKING FUNDS

     Section 12.01 Applicability of Article.

          The provisions of this Article shall be applicable to any sinking fund for the retirement of
Securities of a series except as otherwise specified as contemplated by Section 3.01 for Securities
of such series.

          The minimum amount of any sinking fund payment provided for by the terms of Securities of any
series is herein referred to as a “mandatory sinking fund payment”, and any payment in excess of
such minimum amount provided for by the terms of Securities of any series

-54-

 

is herein referred to as an “optional sinking fund payment”. If provided for by the terms of
Securities of any series, the cash amount of any sinking fund payment may be subject to reduction
as provided in Section 12.02. Each sinking fund payment shall be applied to the redemption of
Securities of any series as provided for by the terms of Securities of such series.

     Section 12.02 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
converted pursuant to Article XIII or which have been redeemed either at the election of the
Company pursuant to the terms of such Securities or through the application of permitted optional
sinking fund payments pursuant to the terms of such Securities, in each case in satisfaction of all
or any part of any sinking fund payment with respect to the Securities of such series required to
be made pursuant to the terms of such Securities as provided for by the terms of such series;
provided that such Securities have not been previously so credited. Such Securities shall be
received and credited for such purpose by the Trustee at the Redemption Price specified in such
Securities for redemption through operation of the sinking fund and the amount of such sinking fund
payment shall be reduced accordingly.

     Section 12.03 Redemption of Securities for Sinking Fund.

          Not less than 60 days prior to each sinking fund payment date for any series of Securities,
the Company will deliver to the Trustee an Officers’ Certificate specifying the amount of the next
ensuing sinking fund payment for that series pursuant to the terms of that series, the portion
thereof, if any, which is to be satisfied by payment of cash and the portion thereof, if any, which
is to be satisfied by delivering and crediting Securities of that series pursuant to Section 12.02
and will also deliver to the Trustee any Securities to be so delivered. Not less than 30 days
before each such sinking fund payment date the Trustee shall select the Securities to be redeemed
upon such sinking fund payment date in the manner specified in Section 11.03 and cause notice of
the redemption thereof to be given in the name of and at the expense of the Company in the manner
provided in Section 11.04. Such notice having been duly given, the redemption of such Securities
shall be made upon the terms and in the manner stated in Sections 11.06 and 11.07.

ARTICLE XIII

CONVERSION OF SECURITIES

     Section 13.01 Applicability; Conversion Privilege and Conversion Price. Securities of
any series which are convertible into Common Stock of the Company shall be convertible in
accordance with their terms and (except as otherwise specified as contemplated by Section 3.01 for
Securities of any series) in accordance with this Article.

          Subject to and upon compliance with the provisions of this Article, at the option of the
Holder thereof, any Security or any portion of the outstanding principal amount thereof which is
$1,000 or an integral multiple of $1,000 may, at the times specified for conversion as hereinafter
provided, be converted at the principal amount thereof, or of such portion thereof, into fully paid

-55-

 

and nonassessable shares (calculated as to each conversion to the nearest 1/100 of a share) of
Common Stock of the Company at the conversion price, determined as hereinafter provided, in effect
at the time of conversion. Such conversion right shall expire at the close of business on the date
specified for Securities of such series. In case a Security or portion thereof is called for
redemption at the election of the Company, such conversion right in respect of the Security or
portion so called shall expire at the close of business on the 10th calendar day before the
Redemption Date, unless the Company defaults in making the payment due upon redemption.

          The price at which shares of Common Stock shall be delivered upon conversion (herein called
the “conversion price”) shall be the price specified in relation to Securities of such series
pursuant to Section 3.01, as it shall be adjusted in certain instances as provided in this Article.
The time or times at which Securities of a series shall be convertible shall be as specified for
such series pursuant to Section 3.01.

     Section 13.02 Exercise of Conversion Privilege. In order to exercise the conversion
privilege, the Holder of any Security to be converted shall surrender such Security, duly endorsed
or assigned to the Company or in blank, at any office or agency of the Company maintained for that
purpose pursuant to Section 10.02, accompanied by written notice to the Company (which shall be
substantially in the form set forth in Section 2.03) at such office or agency that the Holder
elects to convert such Security or, if less than the entire principal amount thereof is to be
converted, the portion thereof to be converted. Securities surrendered for conversion during the
period from the close of business on any Regular Record Date next preceding any Interest Payment
Date to the opening of business on such Interest Payment Date shall (except in the case of
Securities or portions thereof which have been called for redemption on a Redemption Date within
such period) be accompanied by payment in funds acceptable to the Company of an amount equal to the
interest payable on such Interest Payment Date on the principal amount of Securities being
surrendered for conversion. Subject to the provisions of Section 3.07 relating to the payment of
Defaulted Interest by the Company, the interest payment with respect to a Security called for
redemption on a Redemption Date during the period from the close of business on any Regular Record
Date next preceding any Interest Payment Date to the opening of business on such Interest Payment
Date shall be payable on such Interest Payment Date to the Holder of such Security at the close of
business on such Regular Record Date notwithstanding the conversion of such Security after such
Regular Record Date and prior to such Interest Payment Date, and the Holder converting such
Security need not include a payment of such interest payment amount upon surrender of such Security
for conversion. Except as provided in the preceding sentence and subject to the final paragraph of
Section 3.07, no payment or adjustment shall be made upon any conversion on account of any interest
accrued on the Securities surrendered for conversion or on account of any dividends on the Common
Stock issued upon conversion.

          Securities shall be deemed to have been converted immediately prior to the close of business
on the day of surrender of such Securities for conversion in accordance with the foregoing
provisions, and at such time the rights of the Holders of such Securities as Holders shall cease,
and the Person or Persons entitled to receive the Common Stock issuable upon conversion shall be
treated for all purposes as the record holder or holders of such Common Stock at such time. As
promptly as practicable on or after the conversion date, the Company shall issue and shall deliver
at such office or agency a certificate or certificates for the number of

-56-

 

full shares of Common Stock issuable upon conversion, together with payment in lieu of any
fraction of a share, as provided in Section 13.03.

          In the case of any Security which is converted in part only, upon such conversion the Company
shall execute and the Trustee shall authenticate and deliver to the Holder thereof, at the expense
of the Company, a new Security or Securities of authorized denominations in aggregate principal
amount equal to the unconverted portion of the principal amount of such Security.

     Section 13.03 Fractions of Shares. No fractional shares of Common Stock shall be
issued upon conversion of Securities. If more than one Security shall be surrendered for
conversion at one time by the same Holder, the number of full shares which shall be issuable upon
conversion thereof shall be computed on the basis of the aggregate principal amount of the
Securities (or specified portions thereof) so surrendered. Instead of any fractional share of
Common Stock which would otherwise be issuable upon conversion of any Security or Securities (or
specified portions thereof), the Company shall pay a cash adjustment in respect of such fraction in
an amount equal to the same fraction of the daily closing price per share of Common Stock
(consistent with Section 13.04(6) below) at the close of business on the day of conversion.

     Section 13.04 Adjustment of Conversion Price.

               (1) In case the Company shall pay or make a dividend or other distribution on any class of
capital stock of the Company in Common Stock, the conversion price in effect at the opening of
business on the day following the date fixed for determination of stockholders entitled to receive
such dividend or other distribution shall be reduced by multiplying such conversion price by a
fraction of which the numerator shall be the number of shares of Common Stock outstanding at the
close of business on the date fixed for such determination and the denominator shall be the sum of
such number of shares and the total number of shares constituting such dividend or other
distribution, such reduction to become effective immediately after the opening of business on the
day following the date fixed for such determination. For the purposes of this paragraph (1), the
number of shares of Common Stock at any time outstanding shall not include shares held in the
treasury of the Company but shall include shares issuable in respect of scrip certificates issued
in lieu of fractions of shares of Common Stock. The Company will not pay any dividend or make any
distribution on shares of Common Stock held in the treasury of the Company.

               (2) In case the Company shall issue rights or warrants to all holders of its Common Stock
entitling them to subscribe for or purchase shares of Common Stock at a price per share less than
the current market price per share (determined as provided in paragraph (6) of this Section) of the
Common Stock on the date fixed for the determination of stockholders entitled to receive such
rights or warrants (other than pursuant to a dividend reinvestment plan), the conversion price in
effect at the opening of business on the day following the date fixed for such determination shall
be reduced by multiplying such conversion price by a fraction of which the numerator shall be the
number of shares of Common Stock outstanding at the close of business on the date fixed for such
determination plus the number of shares of Common Stock which the aggregate of the offering price
of the total number of shares of Common Stock so offered for subscription or purchase would
purchase at such current market price and the

-57-

 

denominator shall be the number of shares of Common Stock outstanding at the close of business
on the date fixed for such determination plus the number of shares of Common Stock so offered for
subscription or purchase, such reduction to become effective immediately after the opening of
business on the day following the date fixed for such determination. For the purposes of this
paragraph (2), the number of shares of Common Stock at any time outstanding shall not include
shares held in the treasury of the Company but shall include shares issuable in respect of scrip
certificates issued in lieu of fractions of shares of Common Stock. The Company will not issue any
rights or warrants in respect of shares of Common Stock held in the treasury of the Company.

               (3) In case outstanding shares of Common Stock shall be subdivided into a greater number of
shares of Common Stock, the conversion price in effect at the opening of business on the day
following the day upon which such subdivision becomes effective shall be proportionately reduced,
and, conversely, in case outstanding shares of Common Stock shall each be combined into a smaller
number of shares of Common Stock, the conversion price in effect at the opening of business on the
day following the day upon which such combination becomes effective shall be proportionately
increased, such reduction or increase, as the case may be, to become effective immediately after
the opening of business on the day following the day upon which such subdivision or combination
becomes effective.

               (4) In case the Company shall, by dividend or otherwise, distribute to all holders of its
Common Stock evidences of its indebtedness or assets (including securities, but excluding any
rights or warrants referred to in paragraph (2) of this Section, any dividend or distribution paid
in cash out of the earned surplus of the Company and any dividend or distribution referred to in
paragraph (1) of this Section), the conversion price shall be adjusted so that the same shall equal
the price determined by multiplying the conversion price in effect immediately prior to the close
of business on the date fixed for the determination of stockholders entitled to receive such
distribution by a fraction of which the numerator shall be the current market price per share
(determined as provided in paragraph (6) of this Section) of the Common Stock on the date fixed for
such determination less the then fair market value (as determined by the Board of Directors, whose
determination shall be conclusive and described in a Board Resolution filed with the Trustee) of
the portion of the assets or evidences of indebtedness so distributed applicable to one share of
Common Stock and the denominator shall all be such current market price per share of the Common
Stock, such adjustment to become effective immediately prior to the opening of business on the day
following the date fixed for the determination of stockholders entitled to receive such
distribution.

               (5) The reclassification of Common Stock into securities other than Common Stock (other than
any reclassification upon a consolidation or merger to which Section 13.11 applies) shall be deemed
to involve (a) a distribution of such securities other than Common Stock to all holders of Common
Stock (and the effective date of such reclassification shall be deemed to be “the date fixed for
the determination of stockholders entitled to receive such distribution” and “the date fixed for
such determination” within the meaning of paragraph (4) of this Section), and (b) a subdivision or
combination, as the case may be, of the number of shares of Common Stock outstanding immediately
prior to such reclassification into the number of shares of Common Stock outstanding immediately
thereafter (and the effective date of such reclassification shall be deemed to be “the day upon
which such subdivision becomes effective”

-58-

 

or “the day upon which such combination becomes effective”, as the case may be, and “the day
upon which such subdivision or combination becomes effective” within the meaning of paragraph (3)
of this Section).

               (6) For the purpose of any computation under paragraphs (2) and (4) of this Section, the
current market price per share of Common Stock on any day shall be deemed to be the average of the
daily closing prices for the five consecutive trading days (i.e ., Business Days on which
the Common Stock is traded) selected by the Board of Directors commencing not more than 20 trading
days before, and ending not later than, 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 this
purpose, the term “ex” date, when used with respect to any issuance or distribution, shall mean the
first date on which the Common Stock trades regular way on the applicable exchange or in the
applicable market without the right to receive such issuance or distribution. The closing price
for each day shall be the reported last sale price regular way or, in case no such reported sale
takes place on such day, the average of the reported closing bid and asked prices regular way, in
either case on the New York Stock Exchange or, if the Common Stock is not listed or admitted to
trading on such Exchange, on the principal national securities exchange on which the Common Stock
is listed or admitted to trading or, if not listed or admitted to trading on any national
securities exchange, on the Nasdaq Stock Market or, if the Common Stock is not listed or admitted
to trading on any national securities exchange or quoted on the Nasdaq Stock Market, the average of
the closing bid and asked prices in the over-the-counter market as furnished by any New York Stock
Exchange member firm selected from time to time by the Board of Directors for that purpose.

               (7) The Company may make such reductions in the conversion price, in addition to those
required by paragraphs (1), (2), (3) and (4) of this Section, as it 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 reasons. The
Company shall have the power to resolve any ambiguity or correct any error pursuant to this section
and its actions in so doing shall be final and conclusive.

               (8) No adjustment in the conversion price shall be required unless such adjustment would
require an increase or decrease of at least one percent in such conversion price; provided,
however, that any adjustment which by reason of this paragraph (8) is not required to be
made shall be carried forward and taken into account in any subsequent adjustment. All
calculations under this Article shall be made to the nearest cent or to the nearest 1/100 of a
share, as the case may be.

     Section 13.05 Notice of Adjustments of Conversion Price.

          Whenever the conversion price is adjusted as herein provided:

               (1) the Company shall compute the adjusted conversion price in accordance with Section 13.04
and shall prepare a certificate signed by the Treasurer or other appropriate officer of the Company
setting forth the adjusted conversion price and showing in reasonable detail the facts upon which
such adjustment is based, and such certificate shall promptly be

-59-

 

delivered to the Trustee and the Conversion Agent at each office or agency maintained for the
purpose of conversion of Securities pursuant to Section 10.02; and

               (2) a notice stating that the conversion price has been adjusted and setting forth the
adjusted conversion price shall be required, and as soon as practicable after it is required, such
notice shall be delivered electronically or mailed by the Company to all Holders at their last
addresses as they shall appear in the Security Register.

     Section 13.06 Notice of Certain Corporate Action.

     In case:

               (1) the Company shall declare a dividend (or any other distribution) on its Common Stock
payable otherwise than in cash out of its earned surplus; or

               (2) the Company shall authorize the granting to all holders of its Common Stock of rights or
warrants to subscribe for or purchase any shares of capital stock of any class or of any other
rights; or

               (3) of any reclassification of the Common Stock of the Company (other than a subdivision or
combination of its outstanding shares of Common Stock), or of any consolidation, merger or share
exchange to which the Company is a party and for which approval of any stockholders of the Company
is required, or of the sale or transfer of all or substantially all of the assets of the Company;
or

               (4) of the voluntary or involuntary dissolution, liquidation or winding up of the Company;

then the Company shall cause to be filed at each office or agency maintained for the purpose of
conversion of Securities pursuant to Section 10.02, and shall cause to be mailed to all Holders at
their last addresses as they shall appear in the Security Register, at least 20 days (or 10 days in
any case specified in clause (a) or (b) above) prior to the applicable record or effective date
hereinafter specified, a notice stating (x) the date on which a record is to be taken for the
purpose of such dividend, distribution, rights or warrants, or, if a record is not to be taken, the
date as of which the holders of Common Stock of record to be entitled to such dividend,
distribution, rights or warrants are to be determined, or (y) the date on which such
reclassification, consolidation, merger, share exchange, sale, transfer, dissolution, liquidation
or winding up is expected to become effective, and the date as of which it is expected that holders
of Common Stock of record shall be entitled to exchange their shares of Common Stock for
securities, cash or other property deliverable upon such reclassification, consolidation, merger,
share exchange, sale, transfer, dissolution, liquidation or winding up. Neither the failure to
give such notice nor any defect therein shall affect the legality or validity of the proceedings
described in clauses (a) through (d) of this Section 13.06. If at the time the Trustee shall not
be the Conversion Agent, a copy of such notice shall also forthwith be delivered by the Company to
the Trustee.

     Not less than seven days prior to any date fixed for the determination of stockholders
entitled to receive such distribution, the Company shall cause to be filed at each office or agency
maintained for the purpose of conversion of Securities pursuant to Section 10.02, and shall cause

-60-

 

to be mailed to all Holders at their last addresses as they shall appear in the Security Register,
a notice stating the date on which the such determination is to be made, and briefly describing the
import thereof. If at the time the Trustee shall not be the Conversion Agent, a copy of such notice
shall also forthwith be delivered by the Company to the Trustee.

     Section 13.07 Company to Reserve Common Stock. The Company shall at all times reserve
and keep available out of its authorized but unissued Common Stock, for the purpose of effecting
the conversion of Securities, the full number of shares of Common Stock then issuable upon the
conversion of all Outstanding Securities.

     Section 13.08 Taxes on Conversions. The Company will pay any and all taxes that may
be payable in respect of the issue or delivery of shares of Common Stock on conversion of
Securities pursuant hereto. The Company shall not, however, be required to pay any tax which may
be payable in respect of any transfer involved in the issue and delivery of shares of Common Stock
in a name other than that of the Holder of the Security or Securities to be converted, and no such
issue or delivery shall be made unless and until the Person requesting such issue has paid to the
Company the amount of any such tax, or has established to the satisfaction of the Company that such
tax has been paid.

     Section 13.09 Covenant as to Common Stock. The Company covenants that all shares of
Common Stock which may be issued upon conversion of Securities will upon issue be fully paid and
nonassessable and, except as provided in Section 13.08, the Company will pay all taxes, liens and
charges with respect to the issue thereof.

     Section 13.10 Cancellation of Converted Securities. All Securities delivered for
conversion shall be delivered to the Trustee to be cancelled by or at the direction of the Trustee,
which shall dispose of the same as provided in Section 3.09.

     Section 13.11 Provisions in Case of Consolidation, Merger or Sale of Assets. In case
of any consolidation of the Company with, or merger of the Company into, any other Person, any
merger of another Person into the Company (other than a merger which does not result in any
reclassification, conversion, exchange or cancellation of outstanding shares of Common Stock of the
Company) or any sale or transfer of all or substantially all of the assets of the Company, the
Person formed by such consolidation or resulting from such merger or which acquires such assets, as
the case may be, shall execute and deliver to the Trustee a supplemental indenture providing that
the Holder of each convertible Security then outstanding shall have the right thereafter, during
the period such Security shall be convertible as specified in Section 13.01, to convert such
Security only into the kind and amount of securities, cash and other property receivable upon such
consolidation, merger, sale or transfer by a holder of the number of shares of Common Stock of the
Company into which such Security might have been converted immediately prior to such consolidation,
merger, sale or transfer, assuming such holder of Common Stock of the Company failed to exercise
his rights of election, if any, as to the kind or amount of securities, cash and other property
receivable upon such consolidation, merger, sale or transfer (provided that if the kind or amount
of securities, cash and other property receivable upon such consolidation, merger, sale or transfer
is not the same for each share of Common Stock of the Company in respect of which such rights of
election shall not have been exercised (“non-electing share”), then for the purpose of this Section
the kind and amount of securities,

-61-

 

cash and other property receivable upon such consolidation, merger, sale or transfer by each
non-electing share shall be deemed to be the kind and amount so receivable per share by a plurality
of the non-electing shares). Such supplemental indenture shall provide for adjustments which, for
events subsequent to the effective date of such supplemental indenture, shall be as nearly
equivalent as may be practicable to the adjustments provided for in this Article. The above
provisions of this Section shall similarly apply to successive consolidations, mergers, sales or
transfers.

     Section 13.12 Responsibility of Trustee. Neither the Trustee nor any Conversion Agent
shall at any time be under any duty or responsibility to any Holder of Securities to determine
whether any fact exists which may require any adjustment of the conversion price, or with respect
to the nature or extent of any such adjustment when made, or with respect to the method employed,
or herein or in any supplemental indenture provided to be employed, in making the same. Neither
the Trustee nor any Conversion Agent shall be accountable with respect to the registration,
validity or value (or the kind or amount) of any shares of Common Stock, or of any securities or
property, which may at any time be issued or delivered upon the conversion of any Security, or for
monitoring the price of the Common Stock or effecting any calculations hereunder; and neither the
Trustee nor any Conversion Agent makes any representation with respect thereto. Neither the
Trustee nor any Conversion Agent shall be responsible for any failure of the Company to issue or
transfer or deliver any Common Stock or stock certificates or other securities or property or to
make any cash payment upon the surrender of any Security for the purpose of conversion or to comply
with any of the covenants of the Company contained in this Article XIII.

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

(Signature Page to Follow)

-62-

 

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

	 	 	 	 	 	 	 
	 	 	JEFFERIES GROUP, INC.	 	 
	 
	 	 	 	 	 	 
	 
	 	By:	 	 	 	 
	 
	 	 	 	 

Name:
	 	 
	 
	 	 	 	Title:	 	 
	 
	 	 	 	 	 	 
	 	 	THE BANK OF NEW YORK MELLON	 	 
	 
	 	 	 	 	 	 
	 
	 	By:	 	 	 	 
	 
	 	 	 	 

Name:
	 	 
	 
	 	 	 	Title:	 	 

-63-exv4w1

Exhibit 4.1

EXECUTION VERSION

 

 

The GEO Group, Inc.

as Issuer

and

Correctional Properties Prison Finance LLC

Correctional Services Corporation

CPT Limited Partner, LLC

CPT Operating Partnership LP

GEO Acquisition II, Inc.

GEO Care, Inc.

GEO Holdings I, Inc.

Public Properties Development & Leasing LLC

GEO RE Holdings LLC

GEO Transport, Inc.

Just Care, Inc.

as Initial Guarantors

and

Wells Fargo Bank, National Association,

as Trustee

 

INDENTURE

Dated as of October 20, 2009

 

7 3/4% SENIOR NOTES DUE 2017

 

 

 

 

CROSS-REFERENCE TABLE*

	 	 	 	 	 
	Trust Indenture	 	 
	Act Section	 	Indenture Section
	310(a)(1)

	 	 	7.10	 
	      (a)(2)

	 	 	7.10	 
	      (a)(3)

	 	 	N.A.	 
	      (a)(4)

	 	 	N.A.	 
	      (a)(5)

	 	 	7.10	 
	      (b)

	 	 	7.10	 
	      (c)

	 	 	N.A.	 
	311(a)

	 	 	7.11	 
	      (b)

	 	 	7.11	 
	      (c)

	 	 	N.A.	 
	312(a)

	 	 	2.06	 
	      (b)

	 	 	12.03	 
	      (c)

	 	 	12.03	 
	313(a)

	 	 	7.06	 
	      (b)(1)

	 	 	N.A.	 
	      (b)(2)

	 	 	7.06, 7.07	 
	      (c)

	 	 	7.06, 12.02	 
	      (d)

	 	 	7.06	 
	314(a)

	 	 	12.05	 
	      (b)

	 	 	N.A.	 
	      (c)(1)

	 	 	N.A.	 
	      (c)(2)

	 	 	N.A.	 
	      (c)(3)

	 	 	N.A.	 
	      (d)

	 	 	N.A.	 
	      (e)

	 	 	12.05	 
	      (f)

	 	 	N.A.	 
	315(a)

	 	 	N.A.	 
	      (b)

	 	 	N.A.	 
	      (c)

	 	 	N.A.	 
	      (d)

	 	 	N.A.	 
	      (e)

	 	 	N.A.	 
	316(a)(last sentence)

	 	 	N.A.	 
	      (a)(1)(A)

      (a)(1)(B)

	 	 	N.A.

N.A.	 
	      (a)(2)

	 	 	N.A.	 
	      (b)

      (c)

	 	 	N.A.

12.14	 

 

			
	N.A. means not applicable. 
	* 	 	
This Cross-Reference Table is not part of the Indenture.

 

 

	 	 	 	 	 
	Trust Indenture	 	 
	Act Section	 	Indenture Section
	317(a)(1)

	 	 	N.A.	 
	      (a)(2)

	 	 	N.A.	 
	      (b)

	 	 	N.A.	 
	318(a)

	 	 	N.A.	 
	      (b)

	 	 	N.A.	 
	      (c)

	 	 	12.01	 

 

 

TABLE OF CONTENTS

	 	 	 	 	 	 	 
	 	 	 	 	Page
	CROSS-REFERENCE TABLE
	 	 	i	 
	 
	 	 	ARTICLE ONE
	 	 	 	 
	 	 	DEFINITIONS AND INCORPORATION
	 	 	 	 
	 	 	BY REFERENCE
	 	 	 	 
	 
	Section 1.01
	 	Definitions

	 	 	1	 
	Section 1.02
	 	Other Definitions

	 	 	25	 
	Section 1.03
	 	Incorporation by Reference of Trust Indenture Act

	 	 	25	 
	Section 1.04
	 	Rules of Construction

	 	 	26	 
	 
	 	 	ARTICLE TWO
	 	 	 	 
	 	 	THE NOTES
	 	 	 	 
	 
	Section 2.01
	 	Form and Dating

	 	 	26	 
	Section 2.02
	 	Execution and Authentication

	 	 	27	 
	Section 2.03
	 	Methods of Receiving Payments on the Notes

	 	 	28	 
	Section 2.04
	 	Registrar and Paying Agent

	 	 	29	 
	Section 2.05
	 	Paying Agent to Hold Money in Trust

	 	 	29	 
	Section 2.06
	 	Holder Lists

	 	 	29	 
	Section 2.07
	 	Transfer and Exchange

	 	 	30	 
	Section 2.08
	 	Replacement Notes

	 	 	42	 
	Section 2.09
	 	Outstanding Notes

	 	 	42	 
	Section 2.10
	 	Treasury Notes

	 	 	43	 
	Section 2.11
	 	Temporary Notes

	 	 	43	 
	Section 2.12
	 	Cancellation

	 	 	43	 
	Section 2.13
	 	Defaulted Interest

	 	 	43	 
	Section 2.14
	 	CUSIP Numbers

	 	 	44	 
	 
	 	 	 ARTICLE THREE
	 	 	 	 
	 	 	 REDEMPTION AND PREPAYMENT;
	 	 	 	 
	 	 	 SATISFACTION AND DISCHARGE
	 	 	 	 
	 
	Section 3.01
	 	Notices to Trustee

	 	 	44	 
	Section 3.02
	 	Selection of Notes to Be Redeemed

	 	 	44	 
	Section 3.03
	 	Notice of Redemption

	 	 	44	 
	Section 3.04
	 	Effect of Notice of Redemption

	 	 	45	 
	Section 3.05
	 	Deposit of Redemption Price

	 	 	45	 
	Section 3.06
	 	Notes Redeemed in Part

	 	 	46	 
	Section 3.07
	 	Optional Redemption

	 	 	46	 
	Section 3.08
	 	Repurchase Offers

	 	 	47	 
	Section 3.09
	 	Application of Trust Money

	 	 	49	 

i

 

	 	 	 	 	 	 	 
	 	 	 	 	Page
	 	 	ARTICLE FOUR
	 	 	 	 
	 	 	 COVENANTS
	 	 	 	 
	 
	Section 4.01
	 	Payment of Notes

	 	 	49	 
	Section 4.02
	 	Maintenance of Office or Agency

	 	 	49	 
	Section 4.03
	 	Reports

	 	 	50	 
	Section 4.04
	 	Compliance Certificate

	 	 	51	 
	Section 4.05
	 	Taxes

	 	 	52	 
	Section 4.06
	 	Stay, Extension and Usury Laws

	 	 	52	 
	Section 4.07
	 	Restricted Payments

	 	 	52	 
	Section 4.08
	 	Dividend and Other Payment Restrictions Affecting Restricted Subsidiaries

	 	 	55	 
	Section 4.09
	 	Incurrence of Indebtedness and Issuance of Preferred Stock

	 	 	57	 
	Section 4.10
	 	Asset Sales

	 	 	60	 
	Section 4.11
	 	Transactions with Affiliates

	 	 	63	 
	Section 4.12
	 	Liens

	 	 	64	 
	Section 4.13
	 	Business Activities

	 	 	64	 
	Section 4.14
	 	Offer to Repurchase upon a Change of Control

	 	 	64	 
	Section 4.15
	 	Designation of Restricted and Unrestricted Subsidiaries

	 	 	65	 
	Section 4.16
	 	Payments for Consent

	 	 	66	 
	Section 4.17
	 	Sale and Leaseback Transactions

	 	 	66	 
	Section 4.18
	 	Additional Note Guarantees

	 	 	66	 
	Section 4.19
	 	Changes in Covenants When Notes Rated Investment Grade

	 	 	67	 
	Section 4.20
	 	Liquidated Damages Notice

	 	 	68	 
	 
	 	 	ARTICLE FIVE
	 	 	 	 
	 	 	SUCCESSORS
	 	 	 	 
	 
	Section 5.01
	 	Merger, Consolidation or Sale of Assets

	 	 	68	 
	Section 5.02
	 	Successor Corporation Substituted

	 	 	69	 
	 
	 	 	 ARTICLE SIX
	 	 	 	 
	 	 	 DEFAULTS AND REMEDIES
	 	 	 	 
	 
	Section 6.01
	 	Events of Default

	 	 	69	 
	Section 6.02
	 	Acceleration

	 	 	71	 
	Section 6.03
	 	Other Remedies

	 	 	71	 
	Section 6.04
	 	Waiver of Past Defaults

	 	 	72	 
	Section 6.05
	 	Control by Majority

	 	 	72	 
	Section 6.06
	 	Limitation on Suits

	 	 	72	 
	Section 6.07
	 	Rights of Holders of Notes to Receive Payment

	 	 	73	 
	Section 6.08
	 	Collection Suit by Trustee

	 	 	73	 
	Section 6.09
	 	Trustee May File Proofs of Claim

	 	 	73	 
	Section 6.10
	 	Priorities

	 	 	74	 
	Section 6.11
	 	Undertaking for Costs

	 	 	74	 

ii

 

	 	 	 	 	 	 	 
	 	 	 	 	Page
	 	 	ARTICLE SEVEN
	 	 	 	 
	 	 	TRUSTEE
	 	 	 	 
	Section 7.01
	 	Duties of Trustee

	 	 	75	 
	Section 7.02
	 	Certain Rights of Trustee

	 	 	76	 
	Section 7.03
	 	Individual Rights of Trustee

	 	 	77	 
	Section 7.04
	 	Trustee’s Disclaimer

	 	 	77	 
	Section 7.05
	 	Notice of Defaults

	 	 	77	 
	Section 7.06
	 	Reports by Trustee to Holders of the Notes

	 	 	77	 
	Section 7.07
	 	Compensation and Indemnity

	 	 	78	 
	Section 7.08
	 	Replacement of Trustee

	 	 	79	 
	Section 7.09
	 	Successor Trustee by Merger, Etc.

	 	 	80	 
	Section 7.10
	 	Eligibility; Disqualification

	 	 	80	 
	Section 7.11
	 	Preferential Collection of Claims Against Company

	 	 	80	 
	Section 7.12
	 	Trustee’s Application for Instructions from the Company

	 	 	80	 
	 
	 	 	ARTICLE EIGHT
	 	 	 	 
	 	 	DEFEASANCE AND COVENANT DEFEASANCE
	 	 	 	 
	 
	Section 8.01
	 	Option to Effect Legal Defeasance or Covenant Defeasance

	 	 	80	 
	Section 8.02
	 	Legal Defeasance and Discharge

	 	 	81	 
	Section 8.03
	 	Covenant Defeasance

	 	 	81	 
	Section 8.04
	 	Conditions to Legal or Covenant Defeasance

	 	 	82	 
	Section 8.05
	 	Deposited Money and Government Securities to Be Held in Trust;
Other Miscellaneous Provisions

	 	 	83	 
	Section 8.06
	 	Repayment to the Company

	 	 	83	 
	Section 8.07
	 	Reinstatement

	 	 	84	 
	 
	 	 	 ARTICLE NINE
	 	 	 	 
	 	 	 AMENDMENT, SUPPLEMENT AND WAIVER
	 	 	 	 
	 
	Section 9.01
	 	Without Consent of Holders of Notes

	 	 	84	 
	Section 9.02
	 	With Consent of Holders of Notes

	 	 	85	 
	Section 9.03
	 	Compliance with Trust Indenture Act

	 	 	87	 
	Section 9.04
	 	Revocation and Effect of Consents

	 	 	87	 
	Section 9.05
	 	Notation on or Exchange of Notes

	 	 	87	 
	Section 9.06
	 	Trustee to Sign Amendments, Etc.

	 	 	87	 
	 
	 	 	 ARTICLE TEN
	 	 	 	 
	 	 	 NOTE GUARANTEES
	 	 	 	 
	 
	Section 10.01
	 	Guarantee

	 	 	88	 
	Section 10.02.
	 	Limitation on Guarantor Liability

	 	 	89	 
	Section 10.03.
	 	Execution and Delivery of a Supplemental Indenture
Relating to a Note Guarantee

	 	 	89	 
	Section 10.04.
	 	Guarantors May Consolidate, Etc., on Certain Terms

	 	 	90	 
	Section 10.05.
	 	Release of a Guarantor

	 	 	90	 

iii

 

	 	 	 	 	 	 	 
	 	 	 	 	Page
	 	 	 ARTICLE ELEVEN
	 	 	 	 
	 	 	 SATISFACTION AND DISCHARGE
	 	 	 	 
	 
	Section 11.01
	 	Satisfaction and Discharge

	 	 	91	 
	Section 11.02
	 	Deposited Money and Government Securities to Be Held in Trust;
Other Miscellaneous Provisions

	 	 	92	 
	Section 11.03
	 	Repayment to the Company

	 	 	92	 
	 
	 	 	 ARTICLE TWELVE
	 	 	 	 
	 	 	 MISCELLANEOUS
	 	 	 	 
	 
	Section 12.01
	 	Trust Indenture Act Controls

	 	 	92	 
	Section 12.02
	 	Notices

	 	 	92	 
	Section 12.03
	 	Communication by Holders of Notes with Other Holders of Notes

	 	 	94	 
	Section 12.04
	 	Certificate and Opinion as to Conditions Precedent

	 	 	94	 
	Section 12.05
	 	Statements Required in Certificate or Opinion

	 	 	94	 
	Section 12.06
	 	Rules by Trustee and Agents

	 	 	95	 
	Section 12.07
	 	No Personal Liability of Directors, Officers, Employees and Stockholders

	 	 	95	 
	Section 12.08
	 	Governing Law

	 	 	95	 
	Section 12.09
	 	Consent to Jurisdiction

	 	 	95	 
	Section 12.10
	 	No Adverse Interpretation of Other Agreements

	 	 	95	 
	Section 12.11
	 	Successors

	 	 	96	 
	Section 12.12
	 	Severability

	 	 	96	 
	Section 12.13
	 	Counterpart Originals

	 	 	96	 
	Section 12.14
	 	Acts of Holders

	 	 	96	 
	Section 12.15
	 	Benefit of Indenture

	 	 	97	 
	Section 12.16
	 	Table of Contents, Headings, Etc.

	 	 	97	 
	Section 12.17
	 	Waiver of Jury Trial

	 	 	98	 
	Section 12.18
	 	Force Majeure

	 	 	98	 
	Section 12.19
	 	U.S.A. Patriot Act

	 	 	98	 

EXHIBITS

	 	 	 
	Exhibit A
	 	FORM OF NOTE

	 
	Exhibit B
	 	FORM OF CERTIFICATE OF TRANSFER

	 
	Exhibit C
	 	FORM OF CERTIFICATE OF EXCHANGE

	 
	Exhibit D
	 	FORM OF CERTIFICATE OF ACQUIRING INSTITUTIONAL ACCREDITED INVESTOR

	 
	Exhibit E
	 	FORM OF SUPPLEMENTAL INDENTURE

iv

 

          INDENTURE dated as of October 20, 2009 among The GEO Group, Inc., a Florida corporation (the
“Company”), the Initial Guarantors (as defined herein) and Wells Fargo Bank, National Association,
a national banking association, as Trustee.

          The Company and the Trustee (as defined below) agree as follows for the benefit of each other
and for the equal and ratable benefit of the Holders (as defined below) of the 7 3/4% Senior Notes
due 2017:

ARTICLE ONE

DEFINITIONS AND INCORPORATION

BY REFERENCE

Section 1.01 Definitions.

          “144A Global Note” means a global note substantially in the form of Exhibit A hereto bearing
the Global Note Legend and the Private Placement Legend and deposited with or on behalf of, and
registered in the name of, the Depositary or its nominee that shall be issued in a denomination
equal to the outstanding principal amount at maturity of the Notes sold in reliance on Rule 144A.

          “Acquired Debt” means, with respect to any specified Person: (i) Indebtedness of any other
Person existing at the time such other Person is merged with or into or became a Subsidiary of such
specified Person, whether or not such Indebtedness is incurred in connection with, or in
contemplation of, such other Person merging with or into, or becoming a Subsidiary of, such
specified Person; and (ii) Indebtedness secured by a Lien encumbering any asset acquired by such
specified Person.

          “Additional Notes” means an unlimited maximum aggregate principal amount of Notes (other than
the Notes issued on the date hereof) issued under this Indenture in accordance with Sections 2.02,
4.09 and 9.01 hereof.

          “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,” as used with respect to any Person, shall mean the
possession, directly or indirectly, of the power to direct or cause the direction of the management
or policies of such Person, whether through the ownership of voting securities, by agreement or
otherwise; provided that beneficial ownership of 10% or more of the Voting Stock of a Person will
be deemed to be control. For purposes of this definition, the terms “controlling,” “controlled by”
and “under common control with” shall have correlative meanings.

          “Agent” means any Registrar, Paying Agent or co-registrar.

          “Applicable Premium” means, with respect to a Note at any date of redemption, the greater of
(i) 1.0% of the principal amount of such Note and (ii) the excess of (A) the present value at such
date of redemption of (1) the redemption price of such Note at October 15, 2013 (such redemption
price as described in Section 3.07 hereof) plus (2) all remaining required interest payments due on
such Note through October 15, 2013 (excluding accrued but unpaid

 

 

interest to the date of redemption), computed using a discount rate equal to the Treasury Rate
plus 50 basis points, over (B) the principal amount of such Note.

          “Applicable Procedures” means, with respect to any transfer or exchange of or for beneficial
interests in any Global Note, the rules and procedures of the Depositary, Euroclear and Clearstream
that apply to such transfer or exchange.

          “Asset Sale” means:

     (1) the sale, lease, transfer, conveyance or other disposition of any assets or rights;
 provided that the sale, lease, conveyance, transfer or other disposition of all or
substantially all of the assets of the Company and its Restricted Subsidiaries taken as a
whole will be governed by Sections 4.14 and/or 5.01 hereof and not by Section 4.10 hereof;
and

     (2) the issuance or sale by the Company or any of its Restricted Subsidiaries of Equity
Interests of any of the Company’s Subsidiaries.

Notwithstanding the preceding, the following items will not be deemed to be Asset Sales:

     (i) any single transaction or series of related transactions that involves the sale of
assets or the issuance or sale of Equity Interests of a Restricted Subsidiary having a fair
market value of less than $10.0 million;

     (ii) a transfer of assets by the Company to any of its Restricted Subsidiaries or by
any Restricted Subsidiary to the Company or any other Restricted Subsidiary;

     (iii) an issuance of Equity Interests by a Restricted Subsidiary to the Company or to
another Restricted Subsidiary;

     (iv) the sale or lease of equipment, inventory, accounts receivable or other assets in
the ordinary course of business;

     (v) the sale or other disposition of cash or Cash Equivalents; and

     (vi) a Restricted Payment or Permitted Investment that is permitted by Section 4.07
hereof.

     “Asset Swap” means an exchange of assets other than cash, Cash Equivalents or Equity Interests
of the Company or any Subsidiary by the Company or a Restricted Subsidiary of the Company for:

     (1) one or more Permitted Businesses;

     (2) a controlling equity interest in any Person that becomes a Restricted Subsidiary
whose assets consist primarily of one or more Permitted Businesses; and/or

     (3) one or more real estate properties.

2

 

          “Attributable Debt” in respect of a Sale and Leaseback Transaction means, at the time of
determination, the present value of the obligation of the lessee for net rental payments during the
remaining term of the lease included in such Sale and Leaseback Transaction, including any period
for which such lease has been extended or may, at the option of the lessor, be extended. Such
present value shall be calculated using a discount rate equal to the rate of interest implicit in
such transaction, determined in accordance with GAAP.

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

          “Beneficial Owner” has the meaning assigned to such term in Rule 13d-3 and Rule 13d-5 under
the Exchange Act, except that in calculating the beneficial ownership of any particular “person”
(as that term is used in Section 13(d)(3) of the Exchange Act), such “person” shall be deemed to
have beneficial ownership of all securities that such “person” has the right to acquire by
conversion or exercise of other securities, whether such right is currently exercisable or is
exercisable only upon the occurrence of a subsequent condition. The terms “Beneficially Owns” and
 “Beneficially Owned” shall have a corresponding meaning.

          “Board of Directors” means: (1) with respect to a corporation, the board of directors of the
corporation; (2) with respect to a partnership, the board of directors of the general partner of
the partnership; and (3) with respect to any other Person, the board or committee of such Person
serving a similar function.

          “Broker-Dealer” has the meaning set forth in the Registration Rights Agreement.

          “Business Day” means any day which is not a Legal Holiday.

          “Capital Lease Obligation” means, at the time any determination thereof is to be made, the
amount of the liability in respect of a capital lease that would at that time be required to be
capitalized on a balance sheet in accordance with GAAP.

          “Capital Stock” means (1) in the case of a corporation, corporate stock; (2) in the case of an
association or business entity, any and all shares, interests, participations, rights or other
equivalents (however designated) of corporate stock; (3) in the case of a partnership or limited
liability company, partnership or membership interests (whether general or limited); and (4) any
other interest or participation that confers on a Person the right to receive a share of the
profits and losses of, or distributions of assets of, the issuing Person.

          “Cash Equivalents” means (1) United States dollars; (2) Government Securities having
maturities of not more than one year from the date of acquisition; (3) readily marketable direct
obligations issued by any state of the United States of America or any political subdivision
thereof having one of the two highest ratings obtainable from either Moody’s or Standard & Poor’s
with maturities of 12 months or less from the date of acquisition; (4) certificates of
deposit and eurodollar time deposits with maturities of one year or less from the date of
acquisition, bankers’ acceptances with maturities not exceeding one year and overnight bank
deposits, in each case, with any lender party to the Credit Agreement or with any domestic
commercial bank having capital and surplus in excess of $500.0 million and a Thomson Bank Watch
Rating of “B” or better; (5) repurchase obligations with a term of not more than seven

3

 

days for underlying securities of the types described in clauses (2), (3) and (4) above
entered into with any financial institution meeting the qualifications specified in clause (4)
above; (6) commercial paper having the highest rating obtainable from Moody’s or Standard & Poor’s
and in each case maturing within one year after the date of acquisition; (7) money market funds at
least 95% of the assets of which constitute Cash Equivalents of the kinds described in clauses (1)
through (6) of this definition; and (8) with respect to any Foreign Subsidiary, deposit accounts
held by such Foreign Subsidiary in local currency at local commercial banks or savings banks or
saving and loan associations in the ordinary course of business.

          “Change of Control” means the occurrence of any of the following:

     (1) the direct or indirect sale, transfer, assignment, lease, conveyance or other
disposition (other than by way of merger or consolidation), in one or a series of related
transactions, of all or substantially all of the assets of the Company and its Restricted
Subsidiaries, taken as a whole, to any “person” (as that term is used in Section 13(d)(3) of
the Exchange Act other than the Company and any Restricted Subsidiary);

     (2) the approval by the holders of the Voting Stock of the Company of a plan relating
to the liquidation or dissolution of the Company or, if no such approval is required, the
adoption of a plan by the Company relating to the liquidation or dissolution of the Company;

     (3) the consummation of any transaction (including without limitation any merger or
consolidation) the result of which is that any “person” or “group” (as that term is used in
Sections 13(d) and 14(d) of the Exchange Act) becomes the Beneficial Owner, directly or
indirectly, of more than 45% of the voting power of the Voting Stock of the Company;

     (4) the Company consolidates with, or merges with or into, any Person, or any Person
consolidates with, or merges with or into, the Company, in any such event pursuant to a
transaction in which any of the outstanding Voting Stock of the Company or such other Person
is converted into or exchanged for cash, securities or other property, other than any such
transaction where (A) the Voting Stock of the Company outstanding immediately prior to such
transaction is converted into or exchanged for Voting Stock (other than Disqualified Stock)
of the surviving or transferee Person constituting a majority of the outstanding shares of
such Voting Stock of such surviving or transferee Person (immediately after giving effect to
such issuance) and (B) immediately after such transaction, no “person” or “group” (as such
terms are used in Section 13(d) and 14(d) of the Exchange Act), becomes, directly or
indirectly, the Beneficial Owner of 45% or more of the voting power of all classes of Voting
Stock of the Company; or

     (5) the first day on which a majority of the members of the Board of Directors of the
Company are not Continuing Directors.

          “Clearstream” means Clearstream Banking, société anonyme, or its successor.

          “Closing Date” means October 20, 2009.

4

 

          “Company” means The GEO Group, Inc. until a successor replaces it pursuant to Article V hereof
and thereafter means the successor.

          “Consolidated Cash Flow” means, with respect to any specified Person for any period, the
Consolidated Net Income of such Person for such period; plus, in each case, to the extent deducted
in computed Consolidated Net Income,

     (1) losses realized by such Person and its Restricted Subsidiaries in connection with
sales of assets outside the ordinary course of business; plus

     (2) provision for taxes based on income or profits of such Person and its Restricted
Subsidiaries for such period; plus

     (3) consolidated interest expense of such Person and its Restricted Subsidiaries for
such period, whether paid or accrued and whether or not capitalized (including, without
limitation, amortization of debt issuance costs and original issue discount, non-cash
interest payments, the interest component of any deferred payment obligations, the interest
component of all payments associated with Capital Lease Obligations, imputed interest with
respect to Attributable Debt, commissions, discounts and other fees and charges incurred in
respect of letters of credit or bankers’ acceptance financings, and net of the effect of all
payments made or received pursuant to Hedging Obligations), net of Non-Recourse Interest
Payments received in cash by the Company or any Restricted Subsidiary relating to any
Non-Recourse Project Financing Indebtedness up to the amount of interest expense for such
Non-Recourse Project Financing Indebtedness; plus

     (4) depreciation, amortization (including amortization of intangibles but excluding
amortization of prepaid cash expenses that were paid in a prior period) and other non-cash
expenses (excluding any such non-cash expense to the extent that it represents an accrual of
or reserve for cash payments in any future period or amortization of a prepaid cash expense
that was paid in a prior period) of such Person and its Restricted Subsidiaries for such
period; minus

     (5) non-cash items increasing such Consolidated Net Income for such period, other than
the accrual of revenue in the ordinary course of business;

in each case, on a consolidated basis and determined in accordance with GAAP.

          Notwithstanding the preceding, the provision for taxes based on the income or profits of, and
the depreciation and amortization and other non-cash expenses of, a Restricted Subsidiary of the
Company shall be added to Consolidated Net Income to compute Consolidated Cash Flow of the Company
only to the extent that a corresponding amount would be permitted at the date of determination to
be dividended to the Company by such Restricted Subsidiary without prior governmental approval
(that has not been obtained), and pursuant to the terms of its charter and all agreements,
instruments, judgments, decrees, orders, statutes, rules and governmental regulations applicable to
that Restricted Subsidiary or its stockholders.

5

 

          “Consolidated Net Income” means, with respect to any specified Person for any period, the
aggregate of the Net Income of such Person and its Restricted Subsidiaries for such period, on a
consolidated basis, determined in accordance with GAAP; provided  that:

     (1) the Net Income (but not loss) of any Person that is not a Restricted Subsidiary or
that is accounted for by the equity method of accounting will be included only to the extent
of the amount of dividends or distributions paid in cash to the specified Person or a
Restricted Subsidiary of the Person;

     (2) the Net Income of any Restricted Subsidiary shall be excluded to the extent that
the declaration or payment of dividends or similar distributions by that Restricted
Subsidiary of that Net Income is not at the date of determination permitted without any
prior governmental approval (that has not been obtained) or, directly or indirectly, by
operation of the terms of its charter or any agreement, instrument, judgment, decree, order,
statute, rule or governmental regulation applicable to that Restricted Subsidiary or its
stockholders;

     (3) the Net Income of any Person acquired during such period for any period prior to
the date of such acquisition shall be excluded;

     (4) the cumulative effect of a change in accounting principles shall be excluded; and

     (5) the Net Income or loss of any Unrestricted Subsidiary will be excluded, whether or
not distributed to the specified Person or one of its Restricted Subsidiaries.

          “Consolidated Tangible Assets” means the total assets, less goodwill and other intangibles
shown on the most recent consolidated balance sheet of the Company and its Restricted Subsidiaries,
determined on a consolidated basis in accordance with GAAP less all write-ups (other than write-ups
in connection with acquisitions) subsequent to the date hereof in the book value of any asset
(except any such intangible assets) owned by the Company or any of the Company’s Restricted
Subsidiaries.

          “Continuing Directors” means, as of any date of determination, any member of the Board of
Directors of the Company who:

     (1) was a member of such Board of Directors on the date of this Indenture; or

     (2) was nominated for election or elected to such Board of Directors with the approval
of a majority of the Continuing Directors who were members of such Board at the time of such
nomination or election.

          “Corporate Trust Office” means the designated office of the Trustee at which at any time its
corporate trust business shall be administered, which office at the date hereof is located at the
address of the Trustee specified in Section 12.02 hereof, or such other address as to which the
Trustee may from time to time give notice to the Company and to the Holders.

6

 

          “Credit Agreement” means that certain Third Amended and Restated Credit Agreement, dated
as of January 24, 2007, by and among the Company, BNP Paribas as administrative agent for the
lenders and as lead arranger and syndication agent and the other lenders named therein, and other
parties thereto, including any related notes, guarantees, collateral documents, instruments and
agreements executed in connection therewith, and in each case as amended (and/or amended and
restated) as of the date hereof and as may be further amended (and/or amended and restated),
modified, renewed, refunded, replaced or refinanced from time to time, in whole or in part, with
the same or different lenders (including, without limitation, any amendment, amendment and
restatement, modification, renewal, refunding, replacement or refinancing that increases the
maximum amount of the loans made or to be made thereunder).

          “Credit Facilities” means one or more debt facilities (including, without limitation, the
Credit Agreement) or commercial paper facilities, in each case with banks or other institutional
lenders providing for revolving credit loans, term loans, project financings, receivables financing
(including through the sale of receivables to such lenders or to special purpose entities formed to
borrow from such lenders against such receivables) or letters of credit, in each case, as amended
(and/or amended and restated), restated, modified, renewed, refunded, replaced or refinanced in
whole or in part from time to time, but excluding, in each case any debt securities.

          “Default” means any event that is, or with the passage of time or the giving of notice or
both, would be, an Event of Default.

          “Definitive Note” means a certificated Note registered in the name of the Holder thereof and
issued in accordance with Section 2.07 hereof, substantially in the form of Exhibit A hereto,
except that such Note shall not bear the Global Note Legend and shall not have the “Schedule of
Exchanges of Interests in the Global Note” attached thereto.

          “Depositary” means, with respect to the Notes issuable or issued in whole or in part in global
form, the Person specified in Section 2.04 hereof as the Depositary with respect to the Notes, and
any and all successors thereto appointed as depositary hereunder and having become such pursuant to
the applicable provision of this Indenture.

          “Designated Asset” means any facility used in a Permitted Business owned or leased by the
Company or any Restricted Subsidiary that is subject to a Governmental Authority’s option to
purchase or right of reversion under the related Designated Asset Contract.

          “Designated Asset Contract” means (a) contracts or arrangements in existence on the date of
this Indenture with respect to the following facilities under which a Governmental Authority has
the right to purchase such facility for the Designated Asset Value of such facility, or with
respect to which there is a right of reversion of all or a portion of the Company’s or a Restricted
Subsidiary’s ownership or leasehold interest in such facility: Western Region Detention Facility at
San Diego; Central Arizona Correctional Facility; Arizona State Prison Phoenix; Robert A. Deyton
Detention Facility; Lawton Correctional Facility; Arizona State Prison Florence; and Columbia
Regional Care Center; and (b) a contract that is acquired or entered into after the date of this
Indenture under which a Governmental Authority has an option

7

 

to purchase a Designated Asset from the Company or a Restricted Subsidiary for a Designated
Asset Value or a right of reversion of all or a portion of the Company’s or such Restricted
Subsidiary’s ownership or leasehold interest in such Designated Asset, provided that such contract
is acquired or entered into in the ordinary course of business and is preceded by (i) a resolution
of the Board of Directors of the Company set forth in an Officers’ Certificate certifying that the
acquisition or entering into of such contract has been approved by a majority of the members of the
Board of Directors or (ii) an Officers’ Certificate certifying that the acquisition or entering
into of such contract has been approved by the Chief Executive Officer of the Company and, in
either case, the option to purchase or right of reversion in such contract is on terms the Board of
Directors, or the Chief Executive Officer, as applicable, has determined to be reasonable and in
the best interest of the Company taking into account the transaction contemplated thereby or by the
acquisition thereof.

          “Designated Asset Value” means the aggregate consideration to be received by the Company or a
Restricted Subsidiary as set forth in a Designated Asset Contract.

          “Designated Non-Cash Consideration” means the fair market value of total consideration
received by the Company or a Restricted Subsidiary in connection with an Asset Sale that is so
designated as Designated Non-Cash Consideration pursuant to an Officers’ Certificate, setting forth
the basis of such valuation, executed by the Company’s principal executive officer or principal
financial Officer, less the amount of cash or Cash Equivalents received in connection with the
Asset Sale.

          “Disqualified Stock” means any Capital Stock that, by its terms (or by the terms of any
security into which it is convertible, or for which it is exchangeable, in each case at the option
of the holder of the Capital Stock), or upon the happening of any event, matures or is mandatorily
redeemable, pursuant to a sinking fund obligation or otherwise, or redeemable at the option of the
holder of the Capital Stock, in whole or in part, on or prior to the date that is 91 days after the
date on which the Notes mature. Notwithstanding the preceding sentence, any Capital Stock that
would constitute Disqualified Stock solely because the holders thereof have the right to require
the Company to repurchase such Capital Stock upon the occurrence of a change of control or an asset
sale shall not constitute Disqualified Stock if the terms of such Capital Stock provide that the
Company may not repurchase or redeem any such Capital Stock pursuant to such provisions unless such
repurchase or redemption complies with the Section 4.07 hereof.

          “Domestic Subsidiary” means any Restricted Subsidiary of the Company that was formed under the
laws of the United States or any state of the United States (but not the laws of Puerto Rico) or
the District of Columbia or that guarantees or otherwise provides direct credit support for any
Indebtedness of the Company or any Guarantor.

          “Equity Interests” means Capital Stock and all warrants, options or other rights to acquire
Capital Stock (but excluding any debt security that is convertible into, or exchangeable for,
Capital Stock).

          “Equity Offering” means an offering of Capital Stock (other than Disqualified Stock or Capital
Stock that by its terms has a preference in liquidation or as to dividends over

8

 

any other Capital Stock) of the Company (other than (1) an offering pursuant to a registration
statement on Form S-8 or otherwise relating to equity securities issuable under any employee
benefit plan of the Company and (2) an offering with aggregate Net Proceeds to the Company of less
than $35.0 million).

          “Euroclear” means Euroclear Bank S.A./N.V., as operator of Euroclear System, and any successor
thereto.

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

          “Exchange Notes” means the Notes issued in the Exchange Offer in accordance with Section
2.07(f) hereof.

          “Exchange Offer” has the meaning set forth in the Registration Rights Agreement.

          “Exchange Offer Registration Statement” has the meaning set forth in the Registration Rights
Agreement.

          “Existing Indebtedness” means the Indebtedness of the Company and its Subsidiaries (other than
Indebtedness under the Credit Agreement) in existence on the date hereof, until such amounts are
repaid.

          “Fixed Charges” means, with respect to any specified Person for any period, the sum, without
duplication, of:

     (1) the consolidated interest expense of such Person and its Restricted Subsidiaries
for such period, whether paid or accrued and whether or not capitalized, including, without
limitation, amortization of original issue discount, the interest component of any deferred
payment obligations, the interest component of all payments associated with Capital Lease
Obligations, imputed interest with respect to Attributable Debt, commissions, discounts and
other fees and charges incurred in respect of letters of credit or bankers’ acceptance
financings, and net of the effect of all payments made or received pursuant to Hedging
Obligations, net of Non-Recourse Interest Payments received in cash by the Company or any
Restricted Subsidiary relating to any Non-Recourse Project Financing Indebtedness up to the
amount of interest expense for such Non-Recourse Project Financing Indebtedness, but
excluding amortization of debt issuance costs and non-cash interest expense imputed on
convertible debt instruments pursuant to APB No. 14-1; plus

     (2) any interest expense on Indebtedness of another Person to the extent such
Indebtedness is Guaranteed by such Person or one of its Restricted Subsidiaries or secured
by a Lien on assets of such Person or one of its Restricted Subsidiaries, whether or not
such Guarantee or Lien is called upon; plus

     (3) the product of (a) all dividends, whether paid or accrued and whether or not in
cash, on any series of Disqualified Stock or preferred stock of such Person or any of its
Restricted Subsidiaries, other than dividends on Equity Interests payable solely in

9

 

Equity Interests of the Company (other than Disqualified Stock), times (b) a fraction,
the numerator of which is one and the denominator of which is one minus the then current
combined federal, state and local effective cash tax rate of such Person, expressed as a
decimal, in each case, determined on a consolidated basis and in accordance with GAAP.

          “Fixed Charge Coverage Ratio” means with respect to any specified Person for any period, the
ratio of the Consolidated Cash Flow of such Person for such period to the Fixed Charges of such
Person for such period. In the event that the specified Person or any of its Restricted
Subsidiaries incurs, assumes, Guarantees, repays, repurchases or redeems any Indebtedness (other
than ordinary working capital borrowings) or issues, repurchases or redeems preferred stock
subsequent to the commencement of the period for which the Fixed Charge Coverage Ratio is being
calculated and on or prior to the date on which the event for which the calculation of the Fixed
Charge Coverage Ratio is made (the “Calculation Date”), then the Fixed Charge Coverage Ratio will
be calculated giving pro forma effect to such incurrence, assumption, Guarantee, repayment,
repurchase or redemption of Indebtedness, or such issuance, repurchase or redemption of preferred
stock, and the use of the proceeds therefrom as if the same had occurred at the beginning of the
applicable four-quarter reference period, provided, however, that interest expense, if any,
attributable to any Non-Recourse Project Financing Indebtedness computed on a pro forma basis,
shall be computed giving pro forma effect to any Non-Recourse Interest Payments related to such
Non-Recourse Project Financing Indebtedness, provided further that the obligation to make such
Non-Recourse Interest Payments commences with the incurrence of the corresponding Non-Recourse
Project Financing Indebtedness.

          In addition, for purposes of calculating the Fixed Charge Coverage Ratio:

     (1) acquisitions that have been made by the specified Person or any of its Restricted
Subsidiaries, including through mergers or consolidations and including any related
financing transactions, during the four-quarter reference period or subsequent to such
reference period and on or prior to the Calculation Date will be given pro forma effect as
if they had occurred on the first day of the four-quarter reference period and Consolidated
Cash Flow for such reference period will be calculated on a pro forma basis in accordance
with Regulation S-X under the Securities Act, but without giving effect to clause (3) of the
proviso set forth in the definition of Consolidated Net Income;

     (2) the Consolidated Cash Flow attributable to discontinued operations, as determined
in accordance with GAAP, and operations or businesses disposed of prior to the Calculation
Date, will be excluded; and

     (3) the Fixed Charges attributable to discontinued operations, as determined in
accordance with GAAP, and operations or businesses disposed of prior to the Calculation
Date, will be excluded, but only to the extent that the obligations giving rise to such
Fixed Charges will not be obligations of the specified Person or any of its Restricted
Subsidiaries following the Calculation Date.

          “Foreign Subsidiary” means a Restricted Subsidiary of the Company that is not a Domestic
Subsidiary.

10

 

          “GAAP” means generally accepted accounting principles set forth in the opinions and
pronouncements of the Accounting Principles Board of the American Institute of Certified Public
Accountants and statements and pronouncements of the Financial Accounting Standards Board or in
such other statements by such other entity as have been approved by a significant segment of the
accounting profession as amended and/or modified from time to time. All ratios and computations
contained or referred to herein shall be computed in conformity with GAAP applied on a consistent
basis.

          “Global Note Legend” means the legend set forth in Section 2.07(g)(ii), which is required to
be placed on all Global Notes issued under this Indenture.

          “Global Notes” means, individually and collectively, each of the Restricted Global Notes and
the Unrestricted Global Notes issued in accordance with certain sections of this Indenture.

          “Government Securities” means securities issued or directly and fully guaranteed or insured by
the United States government or any agency or instrumentality of the United States government;
provided that the full faith and credit of the United States is pledged in support of those
securities.

          “Governmental Authority” means any nation, province, state, municipality or political
subdivision thereof, and any government or any agency or instrumentality thereof exercising
executive, legislative, regulatory or administrative functions of or pertaining to government, and
any corporation or other entity owned or controlled, through stock or capital ownership or
otherwise, by any of the foregoing.

          “Government Operating Agreement” means any management services contract, operating agreement,
use agreement, lease or similar agreement with a Governmental Authority relating to a facility in a
Permitted Business.

          “Guarantee” means a guarantee other than by endorsement of negotiable instruments for
collection or deposit in the ordinary course of business, direct or indirect, in any manner
including, without limitation, by way of a pledge of assets or through letters of credit or
reimbursement agreements in respect thereof, of all or any part of any Indebtedness, provided that
the pledge of any Government Operating Agreement with respect to any facility to secure
Non-Recourse Project Financing Indebtedness related to such facility shall not be deemed a
Guarantee.

          “Guarantors” means the Initial Guarantors and any other Restricted Subsidiary that executes a
Note Guarantee in accordance with the provisions of this Indenture and its respective successors
and assigns until released in accordance with the terms of this Indenture.

          “Hedging Obligations” means, with respect to any specified Person, the obligations of such
Person under:

     (1) interest rate swap agreements, interest rate cap agreements and interest rate
collar agreements;

11

 

     (2) other agreements or arrangements designed to protect such Person against
fluctuations in interest rates; and

     (3) foreign exchange contracts, currency swap agreements, currency option agreements
and other agreements or arrangements with respect to foreign currency exchange rates.

          “Holder” means a Person in whose name a Note is registered.

          “Indebtedness” means, with respect to any specified Person, any indebtedness of such Person,
whether or not contingent:

     (1) in respect of borrowed money;

     (2) evidenced by bonds, notes, debentures or similar instruments or letters of credit
(or reimbursement agreements in respect thereof);

     (3) in respect of banker’s acceptances;

     (4) representing Capital Lease Obligations;

     (5) representing the balance deferred and unpaid of the purchase price of any property,
except any such balance that constitutes an accrued expense or trade payable; or

     (6) representing any Hedging Obligations,

if and to the extent any of the preceding items (other than letters of credit and Hedging
Obligations) would appear as a liability upon a balance sheet of the specified Person prepared in
accordance with GAAP. In addition, the term “Indebtedness” includes all Indebtedness of others
secured by a Lien on any asset of the specified Person (whether or not such Indebtedness is assumed
by the specified Person; provided that the pledge of any Government Operating Agreement to secure
Non-Recourse Project Financing Indebtedness related to the facility that is the subject of such
Government Operating Agreement shall not be deemed Indebtedness) and, to the extent not otherwise
included, the Guarantee by the specified Person of any Indebtedness of any other Person.

          The amount of any Indebtedness outstanding as of any date will be:

     (1) the accreted value of the Indebtedness, in the case of any Indebtedness issued with
original issue discount; and

     (2) the principal amount of the Indebtedness, together with any interest on the Indebtedness
that is more than 30 days past due, in the case of any other Indebtedness.

          “Indenture” means this Indenture, as amended or supplemented from time to time.

12

 

          “Indirect Participant” means a Person who holds a beneficial interest in a Global Note through
a Participant.

          “Initial Guarantors” means the Restricted Subsidiaries of the Company that Guarantee the Notes
on the Issue Date, all of which are signatories to this Indenture.

          “Initial Purchasers” means the initial purchasers as defined in the Purchase Agreement dated
October 7, 2009.

          “Institutional Accredited Investor” means an institution that is an “accredited investor” as
defined in Rule 501(a)(1), (2), (3) or (7) under the Securities Act, who are not also QIBs.

          “Investments” means, with respect to any Person, all direct or indirect investments by such
Person in other Persons (including Affiliates) in the forms of loans (including Guarantees or other
obligations), advances or capital contributions (excluding commission, travel and similar advances
to officers and employees made in the ordinary course of business), purchases or other acquisitions
for consideration of Indebtedness, Equity Interests or other securities, together with all items
that are or would be classified as investments on a balance sheet prepared in accordance with GAAP
and including the designation of a Restricted Subsidiary as an Unrestricted Subsidiary. If the
Company or any Restricted Subsidiary of the Company sells or otherwise disposes of any Equity
Interests of any direct or indirect Restricted Subsidiary of the Company such that, after giving
effect to any such sale or disposition, such Person is no longer a Restricted Subsidiary of the
Company, the Company will be deemed to have made an Investment on the date of any such sale or
disposition equal to the fair market value of all Investments in such Restricted Subsidiary not
sold or disposed of in an amount determined as provided in Section 4.07 hereof. The acquisition by
the Company or any Restricted Subsidiary of the Company of a Person that holds an Investment in a
third Person will be deemed to be an Investment by the Company or such Restricted Subsidiary in
such third Person in an amount equal to the fair market value of the Investment held by the
acquired Person in such third Person in an amount determined as provided in the final paragraph of
Section 4.07 hereof.

          “Issue Date” means the Closing Date.

          “Legal Holiday” means a Saturday, a Sunday or a day on which banking institutions in The City
of New York or at a place of payment are authorized by law, regulation or executive order to remain
closed. If a payment date is a Legal Holiday at a place of payment, payment may be made at that
place on the next succeeding day that is not a Legal Holiday, and no interest shall accrue on such
payment for the intervening period.

          “Letter of Transmittal” means the letter of transmittal to be prepared by the Company and sent
to all Holders of the Notes for use by such Holders in connection with the Exchange Offer.

          “Lien” means, with respect to any asset, any mortgage, lien, pledge, charge, security interest
or encumbrance of any kind in respect of such asset, whether or not filed, recorded or otherwise
perfected under applicable law, including any conditional sale or other title

13

 

retention agreement, any lease in the nature thereof, any option or other agreement to sell or
give a security interest in and any filing of or agreement to give any financing statement under
the Uniform Commercial Code (or equivalent statutes) of any jurisdiction.

          “Liquidated Damages” means all liquidated damages then owing pursuant to Section 5 of the
Registration Rights Agreement.

          “Moody’s” means Moody’s Investors Service, Inc.

          “Net Income” means, with respect to any specified Person for any period, the net income (loss)
of such Person, determined in accordance with GAAP and before any reduction in respect of preferred
stock dividends, excluding, however:

     (1) any gain (but not loss), together with any related provision for taxes on such gain
(but not loss), realized in connection with: (a) any sale of assets outside the ordinary
course of business; or (b) the disposition of any securities by such Person or any of its
Restricted Subsidiaries or the extinguishment of any Indebtedness of such Person or any of
its Restricted Subsidiaries;

     (2) any extraordinary gain or loss, together with any related provision for taxes on
such extraordinary gain or loss;

     (3) any loss resulting from impairment of goodwill recorded on the consolidated
financial statements of such Person pursuant to SFAS No., 142 “Goodwill and Other Intangible
Assets”;

     (4) any loss resulting from the change in fair value of a derivative financial
instrument pursuant to SFAS No. 133 “Accounting for Derivative Instruments and Hedging
Activities”; and

     (5) amortization of debt issuance costs.

          “Net Proceeds” means the aggregate cash proceeds received by the Company or any of its
Restricted Subsidiaries in respect of any Asset Sale (including, without limitation, any cash or
Cash Equivalents received upon the sale or other disposition of any non-cash consideration received
in any Asset Sale), net of the direct costs relating to such Asset Sale, including, without
limitation, legal, accounting and investment banking fees, and sales commissions, and any
relocation expenses incurred as a result of the Asset Sale, taxes paid or payable as a result of
the Asset Sale, in each case, after taking into account any available tax credits or deductions and
any tax sharing arrangements, and amounts required to be applied to the repayment of Indebtedness,
secured by a Lien on the asset or assets that were the subject of such Asset Sale and any reserve
for adjustment in respect of the sale price of such asset or assets established in accordance with
GAAP.

          “Non-Recourse Debt” means Indebtedness:

     (1) as to which neither the Company nor any of its Restricted Subsidiaries (a) provides
credit support of any kind (including any undertaking, agreement or

14

 

instrument that would constitute Indebtedness), (b) is directly or indirectly liable as a
guarantor or otherwise, or (c) constitutes the lender;

     (2) no default with respect to which (including any rights that the holders of the
Indebtedness may have to take enforcement action against an Unrestricted Subsidiary) would
permit upon notice, lapse of time or both any holder of any other Indebtedness of the
Company or any of its Restricted Subsidiaries to declare a default on such other
Indebtedness or cause the payment of the Indebtedness to be accelerated or payable prior to
its Stated Maturity; and

     (3) as to which the lenders have been notified in writing that they will not have any
recourse to the stock, property or assets of the Company or any of its Restricted
Subsidiaries.

          “Non-Recourse Project Financing Indebtedness” means any Indebtedness of a Subsidiary (the
“Project Financing Subsidiary”) incurred in connection with the acquisition, construction or
development of any facility:

     (1) where either the Company, a Restricted Subsidiary or such Project Financing
Subsidiary operates or is responsible for the operation of the facility pursuant to a
Government Operating Agreement;

     (2) as to which neither the Company nor any of its Restricted Subsidiaries, other than
such Project Financing Subsidiary, (a) provides credit support of any kind (including any
undertaking, agreement or instrument that would constitute Indebtedness), it being
understood that neither (i) equity Investments funded at the time of or prior to the
incurrence of such Indebtedness, nor (ii) the pledge by the Company or any Restricted
Subsidiary of the Government Operating Agreement relating to such facility shall be deemed
credit support or an Investment or (b) is directly or indirectly liable as a guarantor or
otherwise;

     (3) where, upon the termination of the management services contract with respect to
such facility, neither the Company nor any of its Restricted Subsidiaries, other than the
Project Financing Subsidiary, will be liable, directly or indirectly, to make any payments
with respect to such Indebtedness (or portion thereof);

     (4) the interest expense related to such Indebtedness is fully serviced by a payment
pursuant to a Government Operating Agreement with respect to such facility (the
“Non-Recourse Interest Payment”); and

     (5) such Project Financing Subsidiary has no assets other than the assets, including
working capital, reasonably related to the design, construction, management and financing of
the facility.

          “Non-U.S. Person” means a Person who is not a U.S. Person.

          “Note Guarantee” means a Guarantee of the Notes pursuant to this Indenture.

15

 

          “Notes” means the 7 3/4% Senior Notes due 2017 of the Company issued on the date hereof and any
Additional Notes, including the Exchange Notes. The Notes and the Additional Notes, if any, shall
be treated as a single class for all purposes under this Indenture.

          “Obligations” means any principal, interest, penalties, fees, indemnifications,
reimbursements, damages and other liabilities payable under the documentation governing any
Indebtedness.

          “Offering” means the offering of the Notes by the Company.

          “Offering Memorandum” means that certain Offering Memorandum dated October 7, 2009 relating to
the Offering.

          “Officer” means, with respect to any Person, the Chairman of the Board, the Chief Executive
Officer, the President, the Chief Operating Officer, the Chief Financial Officer, the Treasurer,
any Assistant Treasurer, the Controller, the Secretary, an Assistant Secretary or any
Vice-President of such Person.

          “Officers’ Certificate” means a certificate signed on behalf of the Company by at least two
Officers of the Company, one of whom must be the principal executive officer, the principal
financial officer or the principal accounting officer of the Company, that meets the requirements
of Section 12.05 hereof.

          “Opinion of Counsel” means an opinion from legal counsel who is reasonably acceptable to the
Trustee, that meets the requirements of Section 12.05 hereof. The counsel may be an employee of or
counsel to the Company, any Subsidiary of the Company or the Trustee.

          “Participant” means, with respect to the Depositary, Euroclear or Clearstream, a Person who
has an account with the Depositary, Euroclear or Clearstream, respectively (and with respect to
DTC, shall include Euroclear and Clearstream).

          “Permitted Business” means the business conducted by the Company and its Restricted
Subsidiaries on the date hereof and businesses reasonably related thereto or ancillary or
incidental thereto or a reasonable extension thereof, including the privatization of governmental
services.

          “Permitted Debt” has the meaning set forth in Section 4.09(b) hereof.

          “Permitted Investments” means:

     (1) any Investment in the Company or in a Restricted Subsidiary (other than a Project
Financing Subsidiary);

     (2) any Investment in cash or Cash Equivalents;

     (3) any Investment by the Company or any Restricted Subsidiary of the Company in a
Person (other than a Project Financing Subsidiary) if as a result of such Investment:

16

 

     (A) such Person becomes a Restricted Subsidiary (other than a Project Financing
Subsidiary); or

     (B) such Person is merged, consolidated or amalgamated with or into, or
transfers or conveys substantially all of its assets to, or is liquidated into, the
Company or any Restricted Subsidiary (other than a Project Financing Subsidiary);

     (4) any Investment made as a result of the receipt of non-cash consideration from an
Asset Sale that was made pursuant to Section 4.10;

     (5) any Investments received in compromise of obligations of trade creditors or
customers that were incurred in the ordinary course of business, including pursuant to any
plan of reorganization or similar arrangement upon the bankruptcy or insolvency of any trade
creditor or customer;

     (6) Hedging Obligations entered into the ordinary course of business and not for any
speculative purpose;

     (7) other Investments in any other Person having an aggregate fair market value
(measured on the date each such Investment was made and without giving effect to subsequent
changes in value), when taken together with all other Investments made pursuant to this
clause (7) not to exceed: (a) $40.0 million; plus (b) the net reductions in Investments made
pursuant to this clause (7) resulting from distributions on or repayments of such
Investments or from the net cash proceeds from the sale or other disposition of any such
Investment; provided that the net reduction in any Investment shall not exceed the amount of
such Investment;

     (8) payroll, travel and similar advances to cover matters that are expected at the time
of such advances ultimately to be treated as expenses for accounting purposes and that are
made in the ordinary course of business;

     (9) loans or advances to employees made in the ordinary course of business of the
Company or any Restricted Subsidiary not to exceed $5.0 million outstanding at any one time
for all loans or advances under this clause (9);

     (10) stock, obligations or securities received in settlement of debts created in the
ordinary course of business and owing to the Company or any Restricted Subsidiary or in
satisfaction of judgments or pursuant to any plan of reorganization or similar arrangement
upon the bankruptcy or insolvency of a debtor;

     (11) Investments in existence on the date of this Indenture;

     (12) Investments that are made or received in exchange for Equity Interests (other than
Disqualified Stock) of the Company;

17

 

     (13) Investments in South African Services Pty Ltd. having an aggregate fair market
value, when taken together with all other Investments made pursuant to this clause (13) not
to exceed $30.0 million; and

     (14) any Investments made or acquired with the net cash proceeds of a substantially
concurrent issuance or sale of Equity Interests (other than Disqualified Stock) of the
Company; and

     (15) any Investment in any Person that is not at the time of such Investment, or does
not thereby become, a Restricted Subsidiary, in an aggregate amount (measured on the date
such Investment was made and without giving effect to subsequent changes in value), when
taken together with all other Investments made pursuant to this clause (15) since the date
of first issuance of the Notes (but, to the extent that any Investment made pursuant to this
clause (15) since the date of first issuance of the Notes is sold or otherwise liquidated
for cash, minus the lesser of (a) the cash return of capital with respect to such Investment
(less the cost of disposition, if any) and (b) the initial amount of such Investment) not to
exceed 10% of Consolidated Tangible Assets; provided that the Company or a Restricted
Subsidiary of the Company has entered, or concurrently with any such Investment, enters into
or assumes a Government Operating Agreement with respect to assets of such Person that are
used or useful in a Permitted Business.

     “Permitted Liens” means:

     (1) Liens on any assets (including real or personal property) of the Company and any
Restricted Subsidiary securing Indebtedness and other Obligations under Credit Facilities
that were permitted to be incurred by the terms of this Indenture;

     (2) Liens in favor of the Company or the Guarantors;

     (3) Liens on property of a Person existing at the time such Person is merged with or
into or consolidated with the Company or any Restricted Subsidiary of the Company; provided
that such Liens were in existence prior to the contemplation of such merger or consolidation
and do not extend to any assets other than those of the Person merged into or consolidated
with the Company or the Restricted Subsidiary;

     (4) Liens on property existing at the time of acquisition of the property by the
Company or any Restricted Subsidiary of the Company, provided that such Liens were in
existence prior to the contemplation of such acquisition and do not extend to any property
other than the property so acquired by the Company or the Restricted Subsidiary;

     (5) Liens to secure the performance of statutory obligations, surety or appeal bonds,
performance bonds or other obligations of a like nature incurred in the ordinary course of
business;

     (6) Liens to secure Indebtedness (including Capital Lease Obligations) incurred under
Section 4.09(b)(iv);

     (7) Liens existing on the date hereof;

18

 

     (8) Liens for taxes, assessments or governmental charges or claims that are not yet
delinquent or that are being contested in good faith by appropriate proceedings promptly
instituted and diligently concluded; provided that any reserve or other appropriate
provision as is required in conformity with GAAP has been made therefor;

     (9) Liens securing Permitted Refinancing Indebtedness; provided that any such Lien does
not extend to or cover any property, Capital Stock or Indebtedness
other than the property, shares or debt securing the Indebtedness so refunded, refinanced or extended;

     (10) Attachment or judgment Liens not giving rise to a Default or an Event of Default;

     (11) Liens on the Capital Stock of Unrestricted Subsidiaries securing Indebtedness of
such Unrestricted Subsidiaries;

     (12) Liens incurred in the ordinary course of business of the Company or any Subsidiary
of the Company with respect to obligations that do not exceed $15.0 million at any one time
outstanding;

     (13) pledges or deposits under workmen’s compensation laws, unemployment insurance laws
or similar legislation, or good faith deposits in connection with bids, tenders, contracts
(other than for the payment of Indebtedness) or leases to which the Company or any
Restricted Subsidiary is a party, or deposits to secure public or statutory obligations of
the Company or any Restricted Subsidiary or deposits or cash or Government Securities to
secure surety or appeal bonds to which the Company or any Restricted Subsidiary is a party,
or deposits as security for contested taxes or import or customs duties or for the payment
of rent, in each case incurred in the ordinary course of business;

     (14) Liens imposed by law, including carriers’, warehousemen’s and mechanics’ Liens, in
each case for sums not yet due or being contested in good faith by appropriate proceedings
if a reserve or other appropriate provisions; if any, as shall be required by GAAP shall
have been made in respect thereof;

     (15) encumbrances, easements or reservations of, or rights of others for, licenses,
rights of way, sewers, electric lines, telegraph and telephone lines and other similar
purposes, or zoning or other restrictions as to the use of real properties or liens
incidental to the conduct of the business of the Company or a Restricted Subsidiary or to
the ownership of its properties which do not in the aggregate materially adversely affect
the value of said properties or materially impair their use in the operation of the business
of the Company or such Restricted Subsidiary;

     (16) Liens securing Hedging Obligations so long as the related Indebtedness is secured
by a Lien on the same property securing such Hedging Obligations;

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     (17) leases and subleases of real property which do not materially interfere with the
ordinary conduct of the business of the Company or any of its Restricted Subsidiaries;

     (18) normal customary rights of setoff upon deposits of cash in favor of banks or other
depository institutions; and

     (19) Liens on assets of a Project Financing Subsidiary securing Non-Recourse Project
Financing Indebtedness of such Project Financing Subsidiary and Liens on any Government
Operating Agreement securing Non-Recourse Project Financing Indebtedness related to the
facility that is the subject of such Government Operating Agreement; and

     (20) any interest or title of a lessor, licensor or sublicensor in the property subject
to any lease, license or sublicense (other than property that is the subject of a Sale
Leaseback Transaction).

          “Permitted Refinancing Indebtedness” means any Indebtedness of the Company or any of its
Restricted Subsidiaries issued in repayment of, exchange for, or the net proceeds of which are used
to extend, refinance, renew, replace, repay, defease or refund other Indebtedness of the Company or
any of its Restricted Subsidiaries (other than intercompany Indebtedness and Disqualified Stock of
the Company or a Restricted Subsidiary); provided that:

     (1) the principal amount (or accreted value, if applicable) of such Permitted
Refinancing Indebtedness does not exceed the principal amount (or accreted value, if
applicable) of the Indebtedness so extended, refinanced, renewed, replaced, repaid, defeased
or refunded (plus all accrued interest on the Indebtedness and the amount of all expenses
and premiums incurred in connection therewith);

     (2) such Permitted Refinancing Indebtedness has a final maturity date later than the
final maturity date of, and has a Weighted Average Life to Maturity equal to or greater than
the Weighted Average Life to Maturity of, the Indebtedness being extended, refinanced,
renewed, replaced, repaid, defeased or refunded;

     (3) if the Indebtedness being extended, refinanced, renewed, replaced, repaid, defeased
or refunded is subordinated in right of payment to the Notes, such Permitted Refinancing
Indebtedness has a final maturity date later than the final maturity date of, and is
subordinated in right of payment to, the Notes on terms at least as favorable to the Holders
of Notes as those contained in the documentation governing the Indebtedness being extended,
refinanced, renewed, replaced, repaid, defeased or refunded; and

     (4) such Indebtedness is incurred either by the Company or by any Restricted Subsidiary
who is an obligor on the Indebtedness being extended, refinanced, renewed, replaced, repaid,
defeased or refunded.

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

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          “Private Placement Legend” means the legend set forth in Section 2.07(g)(i) to be placed on
all Notes issued under this Indenture except where otherwise permitted by the provisions of this
Indenture.

          “QIB” means a “qualified institutional buyer” as defined in Rule 144A.

          “Registration Rights Agreement” means the Registration Rights Agreement, dated as of October
20, 2009, by and among the Company and the other parties named on the signature pages thereof, as
such agreement may be amended, modified or supplemented from time to time.

          “Regulation S” means Regulation S promulgated under the Securities Act.

          “Regulation S Global Note” means a global note bearing the Global Note Legend and the Private
Placement Legend and deposited with or on behalf of, and registered in the name of, the Depositary
or its nominees that shall be issued in a denomination equal to the outstanding principal amount at
maturity of the Notes resold in reliance on Regulation S.

          “Responsible Officer,” when used with respect to the Trustee, means any vice president,
assistant vice president or other trust officer within the Corporate Trust Office of the Trustee
(or any successor group of the Trustee) or any other officer of the Trustee customarily performing
functions similar to those performed by any of the above designated officers and also means, with
respect to a particular corporate trust matter, any other officer to whom such matter is referred
because of his or her knowledge of and familiarity with the particular subject and who shall have
direct responsibility for the administration of this Indenture.

          “Restricted Definitive Note” means a Definitive Note bearing the Private Placement Legend.

          “Restricted Global Note” means a Global Note bearing the Private Placement Legend.

          “Restricted Investment” means an Investment other than a Permitted Investment.

          “Restricted Subsidiary” means any Subsidiary of the Company that is not an Unrestricted
Subsidiary.

          “Rule 144” means Rule 144 promulgated under the Securities Act.

          “Rule 144A” means Rule 144A promulgated under the Securities Act.

          “Rule 903” means Rule 903 promulgated under the Securities Act.

          “Rule 904” means Rule 904 promulgated the Securities Act.

          “Sale and Leaseback Transactions” means any direct or indirect arrangement relating to
property now owned or hereafter acquired whereby the Company or a Restricted

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Subsidiary transfers such property to another Person and the Company or a Restricted
Subsidiary leases it from such Person other than a lease properly characterized pursuant to GAAP as
a Capital Lease Obligation.

          “SEC” means the Securities and Exchange Commission.

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

          “Shelf Registration Statement” means the Shelf Registration Statement as defined in the
Registration Rights Agreement.

          “Significant Subsidiary” means any Subsidiary that would be a “significant subsidiary” as
defined in Article 1, Rule 1-02 of Regulation S-X, promulgated pursuant to the Securities Act, as
such Regulation is in effect on the date hereof.

          “Standard & Poor’s” means Standard & Poor’s Rating Services.

          “Stated Maturity” means, with respect to any installment of interest or principal on any
series of Indebtedness, the date on which such payment of interest or principal was scheduled to be
paid in the original documentation governing such Indebtedness, and shall not include any
contingent obligations to repay, redeem or repurchase any such interest or principal prior to the
date originally scheduled for the payment thereof.

          “Subsidiary” means, with respect to any specified Person: (1) any corporation, association or
other business entity of which more than 50% of the total voting power of shares of Capital Stock
entitled (without regard to the occurrence of any contingency) to vote in the election of
directors, managers or trustees thereof is at the time owned or controlled, directly or indirectly,
by such Person or one or more of the other Subsidiaries of that Person (or a combination thereof);
and (2) any partnership (a) the sole general partner or the managing general partner of which is
such Person or a Subsidiary of such Person or (b) the only general partners of which are such
Person or one or more Subsidiaries of such Person (or any combination thereof).

          “TIA” means the Trust Indenture Act of 1939, as in effect on the date on which this Indenture
is qualified under the TIA, except as provided in Section 9.03 hereof.

          “Treasury Rate” means the yield to maturity at the time of computation of United States
Treasury securities with a constant maturity (as compiled and published in the most recent Federal
Reserve Statistical Release H.15 (519) which has become publicly available at least two Business
Days prior to the date fixed for prepayment (or, if such Statistical Release is no longer
published, any publicly available source for similar market data)) most nearly equal to the then
remaining term of the Notes to October 15, 2013; provided, however, that if the then remaining term
of the Notes to October 15, 2013 is not equal to the constant maturity of a United States Treasury
security for which a weekly average yield is given, the Treasury Rate will be obtained by linear
interpolation (calculated to the nearest one-twelfth of a year) from the weekly average yields of
United States Treasury securities for which such yields are given, except that if the then
remaining term of the Notes to October 15, 2013 is less than one year, the weekly

22

 

average yield on actually traded United States Treasury securities adjusted to a constant
maturity of one year will be used.

          “Trustee” means Wells Fargo Bank, National Association, until a successor replaces it in
accordance with the applicable provisions of this Indenture and thereafter means the successor
serving hereunder.

          “Unoccupied Facility” means any prison facility owned by the Company or a Restricted
Subsidiary which for the fifty-two week period ending on the date of measurement has had an average
occupancy level of less than 15%.

          “Unrestricted Definitive Note” means one or more Definitive Notes that do not bear and are not
required to bear the Private Placement Legend.

          “Unrestricted Global Note” means a permanent Global Note substantially in the form of Exhibit
A attached hereto that bears the Global Note Legend and that has the “Schedule of Exchanges of
Interests in the Global Note” attached thereto, and that is deposited with or on behalf of and
registered in the name of the Depositary, representing a series of Notes that do not bear the
Private Placement Legend.

          “Unrestricted Subsidiary” means (a) CSC of Tacoma, LLC, GEO International Holdings, Inc., WCC
Financial, Inc., WCC Development, Inc., WCC/FL/01, Inc., WCC/FL/02, Inc., GEO Design Services,
Inc., FF&E, Inc., The GEO Group UK Ltd., The GEO Group Ltd., Premier Custodial Development Ltd.,
South African Custodial Holdings Pty. Ltd., The GEO Group Australasia Pty, Ltd., GEO Australasia
Pty, Ltd., The GEO Group Australia Pty, Ltd., Premier Employment Services Pty, Ltd., Australasian
Correctional Investment Pty, Ltd., Pacific Rim Employment Pty, Ltd., Strategic Healthcare Solutions
Pty, Ltd., Wackenhut Corrections Corporation N.V., Canadian Correctional Management, Inc.,
Miramichi Youth Center Management, Inc., Wackenhut Corrections Puerto Rico, Inc., GEO NZ Limited;
and (b) any other Subsidiary of the Company that is designated by the Board of Directors of the
Company as an Unrestricted Subsidiary pursuant to a Board Resolution, but only to the extent that
such Subsidiary:

     (1) has no Indebtedness other than Non-Recourse Debt or Non-Recourse Project Financing
Indebtedness;

     (2) is not party to any agreement, contract, arrangement or understanding with the
Company or any Restricted Subsidiary of the Company unless the terms of any such agreement,
contract, arrangement or understanding are no less favorable to the Company or such
Restricted Subsidiary than those that might be obtained at the time from Persons who are not
Affiliates of the Company;

     (3) is a Person with respect to which neither the Company nor any of its Restricted
Subsidiaries has any direct or indirect obligation (a) to subscribe for additional Equity
Interests or (b) to maintain or preserve such Person’s financial condition or to cause such
Person to achieve any specified levels of operating results; and

23

 

     (4) has not guaranteed or otherwise directly or indirectly provided credit support for
any Indebtedness of the Company or any of its Restricted Subsidiaries; and

(c) any direct or indirect Subsidiary of any Subsidiary described in clauses (a) or (b).

          Any designation of a Subsidiary of the Company as an Unrestricted Subsidiary will be evidenced
to the Trustee by filing with the Trustee a certified copy of the Board Resolution giving effect to
such designation and an Officers’ Certificate certifying that such designation complied with the
preceding conditions and was permitted under Section 4.07 hereof. If, at any time, any
Unrestricted Subsidiary would fail to meet the preceding requirements as an Unrestricted
Subsidiary, it shall thereafter cease to be an Unrestricted Subsidiary for purposes of this
Indenture and any Indebtedness of such Subsidiary shall be deemed to be incurred by a Restricted
Subsidiary of the Company as of such date and, if such Indebtedness is not permitted to be incurred
as of such date under Section 4.09 hereof, the Company will be in default of such covenant. The
Board of Directors of the Company may at any time designate any Unrestricted Subsidiary to be a
Restricted Subsidiary; provided that such designation will be deemed to be an incurrence of
Indebtedness by a Restricted Subsidiary of the Company of any outstanding Indebtedness of such
Unrestricted Subsidiary and such designation will only be permitted if (1) such Indebtedness is
permitted under Section 4.09 hereof, calculated on a pro forma basis as if such designation had
occurred at the beginning of the four-quarter reference period; and (2) no Default or Event of
Default would be in existence following such designation.

          “U.S. Dollar Equivalent” means with respect to any monetary amount in a currency other than
U.S. dollars, at the time for determination thereof, the amount of U.S. dollars obtained by
converting such foreign currency involved in such computation into U.S. dollars at the spot rate
for the purchase of U.S. dollars with the applicable foreign currency as published in The Wall
Street Journal in the “Exchange Rates” table under the heading “Currency Trading” on the date two
Business Days prior to such determination.

          Except as described in Section 4.09 hereof, whenever it is necessary to determine whether the
Company has complied with any covenant in this Indenture or a Default has occurred and an amount is
expressed in a currency other than U.S. dollars, such amount will be treated as the U.S. Dollar
Equivalent determined as of the date such amount was initially incurred in such currency.

          “U.S. Person” means a U.S. person as defined in Rule 902(k) under the Securities Act.

          “Voting Stock” of any Person as of any date means the Capital Stock of such Person that is at
the time entitled to vote in the election of the Board of Directors of such Person.

          “Weighted Average Life to Maturity” means, when applied to any Indebtedness at any date, the
number of years obtained by dividing: (1) the sum of the products obtained by multiplying (a) the
amount of each then remaining installment, sinking fund, serial maturity or other required payments
of principal or liquidation preference, as the case may be, including payment at final maturity, in
respect of the Indebtedness, by (b) the number of years (calculated to the nearest one-twelfth)
that will elapse between such date and the making of such payment;

24

 

by (2) the then outstanding aggregate principal amount or liquidation preference, as the case
may be, of such Indebtedness.

          “Wholly Owned Subsidiary” of any specified Person means a Subsidiary of such Person all of the
outstanding Capital Stock or other ownership interest of which (other than directors’ qualifying
shares) shall at the time be owned by such Person or by one or more Wholly Owned Subsidiaries of
such Person and one or more Wholly Owned Subsidiaries of such Person.

Section 1.02 Other Definitions.

	 	 	 
	 	 	Defined
	 	 	in
	Term	 	Section
	“Affiliate Transaction”
	 	4.11
	“Asset Sale Offer”
	 	4.10
	“Authentication Order”
	 	2.02
	“Change of Control Offer”
	 	4.14
	“Change of Control Payment”
	 	4.14
	“Change of Control Payment Date”
	 	4.14
	“Covenant Defeasance”
	 	8.03
	“Convenant Suspension Event”
	 	4.19
	“DTC”
	 	2.04
	“Event of Default”
	 	6.01
	“Excess Proceeds”
	 	4.10
	“incur”
	 	4.09
	“Legal Defeasance”
	 	8.02
	“Liquidated Damages Notice”
	 	4.20
	“Offer Amount”
	 	3.08
	“Offer Period”
	 	3.08
	“offshore transaction”
	 	2.07
	“Paying Agent”
	 	2.04
	“Payment Default”
	 	6.01
	“Permitted Debt”
	 	4.09
	“Purchase Date”
	 	3.08
	“Registrar”
	 	2.04
	“Related Judgment”
	 	12.09
	“Related Proceedings”
	 	12.09
	“Repurchase Offer”
	 	3.08
	“Restricted Payments”
	 	4.07
	“Specified Courts”
	 	12.09
	“Suspension Period”
	 	4.19

Section 1.03 Incorporation by Reference of Trust Indenture Act.

          Whenever this Indenture refers to a provision of the TIA, the provision is incorporated by
reference in and made a part of this Indenture.

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

          “indenture securities” means the Notes;

          “indenture security Holder” means a Holder of a Note;

          “indenture to be qualified” means this Indenture;

          “indenture trustee” or “institutional trustee” means the Trustee; and

     ”obligor” on the Notes means the Company and any successor obligor upon the Notes.

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

Section 1.04 Rules of Construction.

          Unless the context otherwise requires:

     (i) a term has the meaning assigned to it;

     (ii) an accounting term not otherwise defined has the meaning assigned to it in
accordance with GAAP;

     (iii) “or” is not exclusive;

     (iv) words in the singular include the plural, and in the plural include the singular;

     (v) provisions apply to successive events and transactions; and

     (vi) references to sections of or rules under the Securities Act shall be deemed to
include substitute, replacement of successor sections or rules adopted by the SEC from time
to time.

ARTICLE TWO

THE NOTES

Section 2.01 Form and Dating.

          (a) General. The Notes and the Trustee’s certificate of authentication shall be substantially
in the form of Exhibit A hereto. The Notes may have notations, legends or endorsements required by
law, stock exchange rule or usage. Each Note shall be dated the date of its authentication. The
Notes shall be issued in registered, global form without interest coupons and only shall be in
minimum denominations of $2,000 and integral multiples of $1,000 in excess thereof.

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          The terms and provisions contained in the Notes shall constitute, and are hereby expressly
made, a part of this Indenture and the Company and the Trustee, by their execution and delivery of
this Indenture, expressly agree to such terms and provisions and to be bound thereby. However, to
the extent any provision of any Note conflicts with the express provisions of this Indenture, the
provisions of this Indenture shall govern and be controlling.

          (b) Global Notes. Notes issued in global form shall be substantially in the form of Exhibit A
attached hereto (including the Global Note Legend thereon and the “Schedule of Exchanges of
Interests in the Global Note” attached thereto). Notes issued in definitive form shall be
substantially in the form of Exhibit A attached hereto (but without the Global Note Legend thereon
and without the “Schedule of Exchanges of Interests in the Global Note” attached thereto). Each
Global Note shall represent such of the outstanding Notes as shall be specified therein and each
shall provide that it shall represent the aggregate principal amount of outstanding Notes from time
to time endorsed thereon and that the aggregate principal amount of outstanding Notes represented
thereby may from time to time be reduced or increased, as appropriate, to reflect exchanges and
redemptions. Any endorsement of a Global Note to reflect the amount of any increase or decrease in
the aggregate principal amount of outstanding Notes represented thereby shall be made by the
Trustee in accordance with instructions given by the Holder thereof as required by Section 2.07
hereof.

          (c) Euroclear and Clearstream Procedures Applicable. The provisions of the “Operating
Procedures of the Euroclear System” and “Terms and Conditions Governing Use of Euroclear” and the
“General Terms and Conditions of Clearstream Banking” and “Customer Handbook” of Clearstream shall
be applicable to transfers of beneficial interests in the Regulation S Global Notes that are held
by Participants through Euroclear or Clearstream.

Section 2.02 Execution and Authentication.

          One Officer of the Company shall sign the Notes for the Company by manual or facsimile
signature.

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

          A Note shall not be valid until authenticated by the manual signature of the Trustee. Such
signature shall be conclusive evidence and the only evidence, that the Note has been authenticated
and delivered under this Indenture.

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

          The Trustee shall, upon a written order of the Company signed by one Officer of the Company
(an “Authentication Order”), authenticate Notes for original issue on the date hereof of $250.0
million. At any time and from time to time after the execution of this Indenture, the Trustee
shall, upon receipt of an Authentication Order, authenticate Notes for original issue in aggregate
principal amount specified in such Authentication Order. The Authentication Order shall specify
the amount of Notes to be authenticated and the date on which the Notes are to be authenticated.
In authenticating such Notes, and accepting the

27

 

additional responsibilities under this Indenture in relation to such Notes, the Trustee shall
be entitled to receive and shall be fully protected in relying upon:

     (A) A copy of the resolution or resolutions of the Board of Directors of the
Company in or pursuant to which the terms of the Notes were established, 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 as of the date of such
certificate;

     (B) an Officers’ Certificate delivered in accordance with Section 12.04(i)
hereof; and

     (C) an Opinion of Counsel which shall state:

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

     (2) that all laws and corporate requirements in respect of the
execution and delivery by the Company of such Notes have been complied with.

          The Trustee shall have the right to decline to authenticate and deliver any Notes under this
Section if the Trustee, being advised by counsel, determines that such action may not lawfully be
taken or if the Trustee in good faith shall determine that such action would expose the Trustee to
personal liability to existing Holders.

          The Trustee may appoint an authenticating agent acceptable to the Company to authenticate
Notes. An authenticating agent may authenticate Notes whenever the Trustee may do so. Each
reference in this Indenture to authentication by the Trustee includes authentication by such agent.
An authenticating agent has the same rights as an Agent to deal with Holders or an Affiliate of
the Company.

Section 2.03 Methods of Receiving Payments on the Notes.

          If a Holder of Notes has given wire transfer instructions to the Company, the Company shall
pay all principal, interest and premium and Liquidated Damages, if any, on that Holder’s Notes in
accordance with those instructions. All other payments on Notes shall be made at the office or
agency of the Paying Agent and Registrar within the City and State of New York unless the Company
elects to make interest payments by check mailed to the Holders at their addresses set forth in the
register of Holders.

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Section 2.04 Registrar and Paying Agent.

          (a) The Company shall maintain an office or agency where Notes may be presented for
registration of transfer or for exchange (“Registrar”) and an office or agency where Notes may be
presented for payment (“Paying Agent”). The Registrar shall keep a register of the Notes and of
their transfer and exchange. The Company may appoint one or more co-registrars and one or more
additional paying agents. The term “Registrar” includes any co-registrar and the term “Paying
Agent” includes any additional paying agent. The Company may change any Paying Agent or Registrar
without prior notice to any Holder. The Company shall notify the Trustee in writing of the name
and address of any Agent not a party to this Indenture. If the Company fails to appoint or
maintain another entity as Registrar or Paying Agent, the Trustee shall act as such. The Company
or any of its Subsidiaries may act as Paying Agent or Registrar.

          (b) The
Company initially appoints The Depository Trust Company (“DTC”) to act as Depositary
with respect to the Global Notes.

          (c) The Company initially appoints the Trustee to act as the Registrar and Paying Agent and to
act as Custodian with respect to the Global Notes.

Section 2.05 Paying Agent to Hold Money in Trust.

          The Company shall require each Paying Agent other than the Trustee to agree in writing that
the Paying Agent shall hold in trust for the benefit of Holders or the Trustee all money held by
the Paying Agent for the payment of principal, premium or Liquidated Damages, if any, or interest
on the Notes, and shall notify the Trustee of any default by the Company in making any such
payment. While any such default continues, the Trustee may require a Paying Agent to pay all money
held by it to the Trustee. The Company at any time may require a Paying Agent to pay all money
held by it to the Trustee. Upon payment over to the Trustee, the Paying Agent (if other than the
Company or one of its Subsidiaries) shall have no further liability for the money. If the Company
or one of its Subsidiaries acts as Paying Agent, it shall segregate and hold in a separate trust
fund for the benefit of the Holders all money held by it as Paying Agent. Upon any bankruptcy or
reorganization proceedings relating to the Company, the Trustee shall serve as Paying Agent for the
Notes.

Section 2.06 Holder Lists.

          The Trustee shall preserve in as current a form as is reasonably practicable the most recent
list available to it of the names and addresses of all Holders and shall otherwise comply with TIA
§ 312(a). If the Trustee is not the Registrar, the Company shall furnish to the Trustee at least
seven Business Days before each interest payment date and at such other times as the Trustee may
request in writing, a list in such form and as of such date as the Trustee may reasonably require
of the names and addresses of the Holders of Notes and the Company shall otherwise comply with TIA
§ 312(a).

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Section 2.07 Transfer and Exchange.

          (a) Transfer and Exchange of Global Notes. A Global Note may not be transferred as a whole
except by the Depositary to a nominee of the Depositary, by a nominee of the Depositary to the
Depositary or to another nominee of the Depositary, or by the Depositary or any such nominee to a
successor Depositary or a nominee of such successor Depositary. All Global Notes shall be
exchanged by the Company for Definitive Notes if (i) the Company delivers to the Trustee notice
from the Depositary that it is unwilling or unable to continue to act as Depositary or that it is
no longer a clearing agency registered under the Exchange Act and, in either case, a successor
Depositary is not appointed by the Company within 120 days after the date of such notice from the
Depositary; (ii) the Company in its sole discretion determines that the Global Notes (in whole but
not in part) should be exchanged for Definitive Notes and delivers a written notice to such effect
to the Trustee or (iii) there shall have occurred and be continuing a Default or Event of Default
with respect to the Notes. Upon the occurrence of any of the preceding events in (i), (ii) or
(iii) above, Definitive Notes shall be issued in such names as the Depositary shall instruct the
Trustee. Global Notes also may be exchanged or replaced, in whole or in part, as provided in
Sections 2.08 and 2.11 hereof. Every Note authenticated and delivered in exchange for, or in lieu
of, a Global Note or any portion thereof, pursuant to this Section 2.07 or Section 2.08 or 2.11
hereof, shall be authenticated and delivered in the form of, and shall be, a Global Note. A Global
Note may not be exchanged for another Note other than as provided in this Section 2.07(a), however,
beneficial interests in a Global Note may be transferred and exchanged as provided in Section
2.07(b), (c) or (f) hereof.

          (b) Transfer and Exchange of Beneficial Interests in the Global Notes. The transfer and
exchange of beneficial interests in the Global Notes shall be effected through the Depositary, in
accordance with the provisions of this Indenture and the Applicable Procedures. Beneficial
interests in the Restricted Global Notes shall be subject to restrictions on transfer comparable to
those set forth herein to the extent required by the Securities Act. Transfers of beneficial
interests in the Global Notes also shall require compliance with either subparagraph (i) or (ii)
below, as applicable, as well as one or more of the other following subparagraphs, as applicable:

     (i) Transfer of Beneficial Interests in the Same Global Note. Beneficial interests in
any Restricted Global Note may be transferred to Persons who take delivery thereof in the
form of a beneficial interest in the same Restricted Global Note in accordance with the
transfer restrictions set forth in the Private Placement Legend. Beneficial interests in
any Unrestricted Global Note may be transferred to Persons who take delivery thereof in the
form of a beneficial interest in an Unrestricted Global Note. No written orders or
instructions shall be required to be delivered to the Registrar to effect the transfers
described in this Section 2.07(b)(i).

     (ii) All Other Transfers and Exchanges of Beneficial Interests in Global Notes. In
connection with all transfers and exchanges of beneficial interests that are not subject to
Section 2.07(b)(i) above, the transferor of such beneficial interest must deliver to the
Registrar either (A) (1) a written order from a Participant or an Indirect Participant given
to the Depositary in accordance with the Applicable Procedures directing the Depositary to
credit or cause to be credited a beneficial interest in the Global Note in an

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amount equal to the beneficial interest to be transferred or exchanged and (2)
instructions given in accordance with the Applicable Procedures containing information
regarding the Participant account to be credited with such increase or (B) (1) a written
order from a Participant or an Indirect Participant given to the Depositary in accordance
with the Applicable Procedures directing the Depositary to cause to be issued a Definitive
Note in an amount equal to the beneficial interest to be transferred or exchanged and (2)
instructions given by the Depositary to the Registrar containing information regarding the
Person in whose name such Definitive Note shall be registered to effect the transfer or
exchange referred to in (1) above. Upon consummation of an Exchange Offer by the Company in
accordance with Section 2.07(f) hereof, the requirements of this Section 2.07(b)(ii) shall
be deemed to have been satisfied upon receipt by the Registrar of the instructions contained
in the Letter of Transmittal delivered by the Holder of such beneficial interests in the
Restricted Global Notes. Upon satisfaction of all of the requirements for transfer or
exchange of beneficial interests in Global Notes contained in this Indenture and the Notes
or otherwise applicable under the Securities Act, the Trustee shall adjust the principal
amount at maturity of the relevant Global Notes pursuant to Section 2.07(h) hereof.

     (iii) Transfer of Beneficial Interests to Another Restricted Global Note. A beneficial
interest in any Restricted Global Note may be transferred to a Person who takes delivery
thereof in the form of a beneficial interest in another Restricted Global Note if the
transfer complies with the requirements of Section 2.07(b)(ii) above and the Registrar
receives the following:

     (A) if the transferee shall take delivery in the form of a beneficial interest
in the 144A Global Note, then the transferor must deliver a certificate in the form
of Exhibit B hereto, including the certifications in item (1) thereof; and

     (B) if the transferee shall take delivery in the form of a beneficial interest
in the Regulation S Global Note, then the transferor must deliver a certificate in
the form of Exhibit B hereto, including the certifications in item (2) thereof.

     (iv) Transfer and Exchange of Beneficial Interests in a Restricted Global Note for
Beneficial Interests in the Unrestricted Global Note. A beneficial interest in any
Restricted Global Note may be exchanged by any holder thereof for a beneficial interest in
an Unrestricted Global Note or transferred to a Person who takes delivery thereof in the
form of a beneficial interest in an Unrestricted Global Note if the exchange or transfer
complies with the requirements of Section 2.07(b)(ii) above and:

     (A) such exchange or transfer is effected pursuant to the Exchange Offer in
accordance with the Registration Rights Agreement and the holder of the beneficial
interest to be transferred, in the case of an exchange, or the transferee, in the
case of a transfer, certifies in the applicable Letter of Transmittal that it is not
(1) a Broker-Dealer, (2) a Person participating in the distribution of the Exchange
Notes or (3) a Person who is an affiliate (as defined in Rule 144) of the Company;

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     (B) such transfer is effected pursuant to the Shelf Registration Statement in
accordance with the Registration Rights Agreement;

     (C) such transfer is effected by a Broker-Dealer pursuant to the Exchange Offer
Registration Statement in accordance with the Registration Rights Agreement; or

     (D) the Registrar receives the following:

     (1) if the holder of such beneficial interest in a Restricted Global
Note proposes to exchange such beneficial interest for a beneficial interest
in an Unrestricted Global Note, a certificate from such Holder in the form
of Exhibit C hereto, including the certifications in item (1)(a) thereof; or

     (2) if the holder of such beneficial interest in a Restricted Global
Note proposes to transfer such beneficial interest to a Person who shall
take delivery thereof in the form of a beneficial interest in an
Unrestricted Global Note, a certificate from such Holder in the form of
Exhibit B hereto, including the certifications in item (4) thereof;

and, in each such case set forth in this subparagraph (D), if the Registrar
so requests or if the Applicable Procedures so require, an Opinion of
Counsel in form reasonably acceptable to the Registrar to the effect that
such exchange or transfer is in compliance with the Securities Act and that
the restrictions on transfer contained herein and in the Private Placement
Legend are no longer required in order to maintain compliance with the
Securities Act.

          If any such transfer is effected pursuant to subparagraph (B) or (D) above at a time when an
Unrestricted Global Note has not yet been issued, the Company shall issue and, upon receipt of an
Authentication Order in accordance with Section 2.02 hereof, the Trustee shall authenticate one or
more Unrestricted Global Notes in an aggregate principal amount equal to the aggregate principal
amount of beneficial interests transferred pursuant to subparagraph (B) or (D) above.

          Beneficial interests in an Unrestricted Global Note cannot be exchanged for, or transferred to
Persons who take delivery thereof in the form of, a beneficial interest in a Restricted Global
Note.

          (c) Transfer or Exchange of Beneficial Interests for Definitive Notes.

     (i) Beneficial Interests in Restricted Global Notes to Restricted Definitive Notes. If
any holder of a beneficial interest in a Restricted Global Note proposes to exchange such
beneficial interest for a Restricted Definitive Note or to transfer such beneficial interest
to a Person who takes delivery thereof in the form of a Restricted Definitive Note, then,
upon receipt by the Registrar of the following documentation:

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     (A) if the holder of such beneficial interest in a Restricted Global Note
proposes to exchange such beneficial interest for a Restricted Definitive Note, a
certificate from such holder in the form of Exhibit C hereto, including the
certifications in item (2)(a) thereof;

     (B) if such beneficial interest is being transferred to a QIB in accordance
with Rule 144A under the Securities Act, a certificate to the effect set forth in
Exhibit B hereto, including the certifications in item (1) thereof;

     (C) if such beneficial interest is being transferred to a Non-U.S. Person in an
“offshore transaction” in accordance with Rule 903 or Rule 904 under the Securities
Act, a certificate to the effect set forth in Exhibit B hereto, including the
certifications in item (2) thereof;

     (D) if such beneficial interest is being transferred pursuant to an exemption
from the registration requirements of the Securities Act in accordance with Rule 144
under the Securities Act, a certificate to the effect set forth in Exhibit B hereto,
including the certifications in item (3)(a) thereof;

     (E) if such beneficial interest is being transferred to an Institutional
Accredited Investor in reliance on an exemption from the registration requirements
of the Securities Act other than those listed in subparagraphs (B) through (D)
above, a certificate to the effect set forth in Exhibit B hereto, including the
certifications, certificates and Opinion of Counsel required by item (3) thereof, if
applicable;

     (F) if such beneficial interest is being transferred to the Company or any of
its Subsidiaries, a certificate to the effect set forth in Exhibit B hereto,
including the certifications in item (3)(b) thereof; or

     (G) if such beneficial interest is being transferred pursuant to an effective
registration statement under the Securities Act, a certificate to the effect set
forth in Exhibit B hereto, including the certifications in item (3)(c) thereof,

the Trustee shall cause the aggregate principal amount of the applicable Global Note to be
reduced accordingly pursuant to Section 2.07(h) hereof, and the Company shall execute and
the Trustee shall authenticate and deliver to the Person designated in the instructions a
Definitive Note in the appropriate principal amount. Any Definitive Note issued in exchange
for a beneficial interest in a Restricted Global Note pursuant to this Section 2.07(c) shall
be registered in such name or names and in such authorized denomination or denominations as
the holder of such beneficial interest shall instruct the Registrar through instructions
from the Depositary and the Participant or Indirect Participant. The Trustee shall deliver
such Definitive Notes to the Persons in whose names such Notes are so registered. Any
Definitive Note issued in exchange for a beneficial interest in a Restricted Global Note
pursuant to this Section 2.07(c)(i) shall bear the Private Placement Legend and shall be
subject to all restrictions on transfer contained therein.

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     (ii) Beneficial Interests in Restricted Global Notes to Unrestricted Definitive Notes.
A holder of a beneficial interest in a Restricted Global Note may exchange such beneficial
interest for an Unrestricted Definitive Note or may transfer such beneficial interest to a
Person who takes delivery thereof in the form of an Unrestricted Definitive Note only if:

     (A) such exchange or transfer is effected pursuant to the Exchange Offer in
accordance with the Registration Rights Agreement and the holder of such beneficial
interest, in the case of an exchange, or the transferee, in the case of a transfer,
certifies in the applicable Letter of Transmittal that it is not (1) a
Broker-Dealer, (2) a Person participating in the distribution of the Exchange Notes
or (3) a Person who is an affiliate (as defined in Rule 144) of the Company;

     (B) such transfer is effected pursuant to the Shelf Registration Statement in
accordance with the Registration Rights Agreement;

     (C) such transfer is effected by a Broker-Dealer pursuant to the Exchange Offer
Registration Statement in accordance with the Registration Rights Agreement; or

     (D) the Registrar receives the following:

     (1) if the holder of such beneficial interest in a Restricted Global
Note proposes to exchange such beneficial interest for a Definitive Note
that does not bear the Private Placement Legend, a certificate from such
Holder in the form of Exhibit C hereto, including the certifications in item
(1)(b) thereof; or

     (2) if the Holder of such beneficial interest in a Restricted Global
Note proposes to transfer such beneficial interest to a Person who shall
take delivery thereof in the form of a Definitive Note that does not bear
the Private Placement Legend, a certificate from such Holder in the form of
Exhibit B hereto, including the certifications in item (4) thereof;

and, in each such case set forth in this subparagraph (D), if the Registrar so
requests or if the Applicable Procedures so require, an Opinion of Counsel in form
reasonably acceptable to the Registrar to the effect that such exchange or transfer
is in compliance with the Securities Act and that the restrictions on transfer
contained herein and in the Private Placement Legend are no longer required in order
to maintain compliance with the Securities Act.

     (iii) Beneficial Interests in Unrestricted Global Notes to Unrestricted Definitive
Notes. If any holder of a beneficial interest in an Unrestricted Global Note proposes to
exchange such beneficial interest for a Definitive Note or to transfer such beneficial
interest to a Person who takes delivery thereof in the form of a Definitive Note, then, upon
satisfaction of the conditions set forth in Section 2.07(b)(ii) hereof, the Trustee shall
cause the aggregate principal amount of the applicable Global Note to be reduced accordingly
pursuant to Section 2.07(h) hereof, and the Company shall execute and the

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Trustee shall authenticate and deliver to the Person designated in the instructions a
Definitive Note in the appropriate principal amount. Any Definitive Note issued in exchange
for a beneficial interest pursuant to this Section 2.07(c)(iii) shall be registered in such
name or names and in such authorized denomination or denominations as the holder of such
beneficial interest shall instruct the Registrar through instructions from the Depositary
and the Participant or Indirect Participant. The Trustee shall deliver such Definitive
Notes to the Persons in whose names such Notes are so registered. Any Definitive Note
issued in exchange for a beneficial interest pursuant to this Section 2.07(c)(iii) shall not
bear the Private Placement Legend.

     (d) Transfer and Exchange of Definitive Notes for Beneficial Interests.

     (i) Restricted Definitive Notes to Beneficial Interests in Restricted Global Notes. If
any Holder of a Restricted Definitive Note proposes to exchange such Note for a beneficial
interest in a Restricted Global Note or to transfer such Restricted Definitive Notes to a
Person who takes delivery thereof in the form of a beneficial interest in a Restricted
Global Note, then, upon receipt by the Registrar of the following documentation:

     (A) if the Holder of such Restricted Definitive Note proposes to exchange such
Note for a beneficial interest in a Restricted Global Note, a certificate from such
Holder in the form of Exhibit C hereto, including the certifications in item (2)(b)
thereof;

     (B) if such Restricted Definitive Note is being transferred to a QIB in
accordance with Rule 144A under the Securities Act, a certificate to the effect set
forth in Exhibit B hereto, including the certifications in item (1) thereof;

     (C) if such Restricted Definitive Note is being transferred to a Non-U.S.
Person in an offshore transaction in accordance with Rule 903 or Rule 904 under the
Securities Act, a certificate to the effect set forth in Exhibit B hereto, including
the certifications in item (2) thereof;

     (D) if such Restricted Definitive Note is being transferred pursuant to an
exemption from the registration requirements of the Securities Act in accordance
with Rule 144 under the Securities Act, a certificate to the effect set forth in
Exhibit B hereto, including the certifications in item (3)(a) thereof;

     (E) if such Restricted Definitive Note is being transferred to an Institutional
Accredited Investor in reliance on an exemption from the registration requirements
of the Securities Act other than those listed in subparagraphs (B) through (D)
above, a certificate to the effect set forth in Exhibit B hereto, including the
certifications, certificates and Opinion of Counsel required by item (3) thereof, if
applicable;

     (F) if such Restricted Definitive Note is being transferred to the Company or
any of its Subsidiaries, a certificate to the effect set forth in Exhibit B hereto,
including the certifications in item (3)(b) thereof; or

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     (G) if such Restricted Definitive Note is being transferred pursuant to an
effective registration statement under the Securities Act, a certificate to the
effect set forth in Exhibit B hereto, including the certifications in item (3)(c)
thereof,

the Trustee shall cancel the Restricted Definitive Note, increase or cause to be increased
the aggregate principal amount of, in the case of clause (A) above, the appropriate
Restricted Global Note, in the case of clause (B) above, the 144A Global Note, and in the
case of clause (C) above, the Regulation S Global Note.

     (ii) Restricted Definitive Notes to Beneficial Interests in Unrestricted Global Notes.
A Holder of a Restricted Definitive Note may exchange such Note for a beneficial interest in
an Unrestricted Global Note or transfer such Restricted Definitive Note to a Person who
takes delivery thereof in the form of a beneficial interest in an Unrestricted Global Note
only if:

     (A) such exchange or transfer is effected pursuant to the Exchange Offer in
accordance with the Registration Rights Agreement and the Holder, in the case of an
exchange, or the transferee, in the case of a transfer, certifies in the applicable
Letter of Transmittal that it is not (1) a Broker-Dealer, (2) a Person participating
in the distribution of the Exchange Notes or (3) a Person who is an affiliate (as
defined in Rule 144) of the Company;

     (B) such transfer is effected pursuant to the Shelf Registration Statement in
accordance with the Registration Rights Agreement;

     (C) such transfer is effected by a Broker-Dealer pursuant to the Exchange Offer
Registration Statement in accordance with the Registration Rights Agreement; or

     (D) the Registrar receives the following:

     (1) if the Holder of such Definitive Notes proposes to exchange such
Notes for a beneficial interest in the Unrestricted Global Note, a
certificate from such Holder in the form of Exhibit C hereto, including the
certifications in item (1)(c) thereof; or

     (2) if the Holder of such Definitive Notes proposes to transfer such
Notes to a Person who shall take delivery thereof in the form of a
beneficial interest in the Unrestricted Global Note, a certificate from such
Holder in the form of Exhibit B hereto, including the certifications in item
(4) thereof;

and, in each such case set forth in this subparagraph (D), if the Registrar so requests or
if the Applicable Procedures so require, an Opinion of Counsel in form reasonably acceptable
to the Registrar to the effect that such exchange or transfer is in compliance with the
Securities Act and that the restrictions on transfer contained herein and in the

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Private
Placement Legend are no longer required in order to maintain compliance with the Securities
Act.

     Upon satisfaction of the conditions of any of the subparagraphs in this Section
2.07(d)(ii), the Trustee shall cancel the Definitive Notes and increase or cause to be
increased the aggregate principal amount of the Unrestricted Global Note.

     (iii) Unrestricted Definitive Notes to Beneficial Interests in Unrestricted Global
Notes. A Holder of an Unrestricted Definitive Note may exchange such Note for a beneficial
interest in an Unrestricted Global Note or transfer such Definitive Notes to a Person who
takes delivery thereof in the form of a beneficial interest in an Unrestricted Global Note
at any time. Upon receipt of a request for such an exchange or transfer, the Trustee shall
cancel the applicable Unrestricted Definitive Note and increase or cause to be increased the
aggregate principal amount of one of the Unrestricted Global Notes.

     If any such exchange or transfer from a Definitive Note to a beneficial interest is
effected pursuant to subparagraphs (ii)(B), (ii)(D) or (iii) above at a time when an
Unrestricted Global Note has not yet been issued, the Company shall issue and, upon receipt of an Authentication Order in
accordance with Section 2.02 hereof, the Trustee shall authenticate one or more Unrestricted
Global Notes in an aggregate principal amount equal to the principal amount of Definitive
Notes so transferred.

          (e) Transfer and Exchange of Definitive Notes for Definitive Notes. Upon request by a Holder
of Definitive Notes and such Holder’s compliance with the provisions of this Section 2.07(e), the
Registrar shall register the transfer or exchange of Definitive Notes. Prior to such registration
of transfer or exchange, the requesting Holder shall present or surrender to the Registrar the
Definitive Notes duly endorsed or accompanied by a written instruction of transfer in form
satisfactory to the Registrar duly executed by such Holder or by its attorney, duly authorized in
writing. In addition, the requesting Holder shall provide any additional certifications, documents
and information, as applicable, required pursuant to the following provisions of this Section
2.07(e).

     (i) Restricted Definitive Notes to Restricted Definitive Notes. Any Restricted
Definitive Note may be transferred to and registered in the name of Persons who take
delivery thereof in the form of a Restricted Definitive Note if the Registrar receives the
following:

     (A) if the transfer shall be made pursuant to Rule 144A under the Securities
Act, then the transferor must deliver a certificate in the form of Exhibit B hereto,
including the certifications in item (1) thereof;

     (B) if the transfer shall be made pursuant to Rule 903 or Rule 904, then the
transferor must deliver a certificate in the form of Exhibit B hereto, including the
certifications in item (2) thereof; and

     (C) if the transfer shall be made pursuant to any other exemption from the
registration requirements of the Securities Act, then the transferor must deliver

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a certificate in the form of Exhibit B hereto, including the certifications,
certificates and Opinion of Counsel required by item (3) thereof, if applicable.

     (ii) Restricted Definitive Notes to Unrestricted Definitive Notes. Any Restricted
Definitive Note may be exchanged by the Holder thereof for an Unrestricted Definitive Note
or transferred to a Person or Persons who take delivery thereof in the form of an
Unrestricted Definitive Note if:

     (A) such exchange or transfer is effected pursuant to the Exchange Offer in
accordance with the Registration Rights Agreement and the Holder, in the case of an
exchange, or the transferee, in the case of a transfer, certifies in the applicable
Letter of Transmittal that it is not (1) a Broker-Dealer, (2) a Person participating
in the distribution of the Exchange Notes or (3) a Person who is an affiliate (as
defined in Rule 144) of the Company;

     (B) any such transfer is effected pursuant to the Shelf Registration Statement
in accordance with the Registration Rights Agreement;

     (C) any such transfer is effected by a Broker-Dealer pursuant to the Exchange
Offer Registration Statement in accordance with the Registration Rights Agreement;
or

     (D) the Registrar receives the following:

     (1) if the Holder of such Restricted Definitive Notes proposes to
exchange such Notes for an Unrestricted Definitive Note, a certificate from
such Holder in the form of Exhibit C hereto, including the certifications in
item (1)(d) thereof; or

     (2) if the Holder of such Restricted Definitive Notes proposes to
transfer such Notes to a Person who shall take delivery thereof in the form
of an Unrestricted Definitive Note, a certificate from such Holder in the form of Exhibit
B hereto, including the certifications in item (4) thereof;

and, in each such case set forth in this subparagraph (D), if the Registrar so
requests, an Opinion of Counsel in form reasonably acceptable to the Company to the
effect that such exchange or transfer is in compliance with the Securities Act and
that the restrictions on transfer contained herein and in the Private Placement
Legend are no longer required in order to maintain compliance with the Securities
Act.

     (iii) Unrestricted Definitive Notes to Unrestricted Definitive Notes. A Holder of
Unrestricted Definitive Notes may transfer such Notes to a Person who takes delivery thereof
in the form of an Unrestricted Definitive Note. Upon receipt of a request to register such
a transfer, the Registrar shall register the Unrestricted Definitive Notes pursuant to the
instructions from the Holder thereof.

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          (f) Exchange Offer. Upon the occurrence of the Exchange Offer in accordance with the
Registration Rights Agreement, the Company shall issue and, upon receipt of an Authentication Order
in accordance with Section 2.02, the Trustee shall authenticate (i) one or more Unrestricted Global
Notes in an aggregate principal amount equal to the principal amount of the beneficial interests in
the Restricted Global Notes tendered for acceptance by Persons that certify in the applicable
Letters of Transmittal that (x) they are not a Broker-Dealer who acquired Notes directly from the
Company or an affiliate of the Company, (y) they are not participating in a distribution of the
Exchange Notes and (z) they are not affiliates (as defined in Rule 144) of the Company, and
accepted for exchange in the Exchange Offer and (ii) Definitive Notes in an aggregate principal
amount equal to the principal amount of the Restricted Definitive Notes accepted for exchange in
the Exchange Offer. Concurrently with the issuance of such Notes, the Trustee shall cause the
aggregate principal amount of the applicable Restricted Global Notes to be reduced accordingly, and
the Company shall execute and the Trustee shall authenticate and deliver to the Persons designated
by the Holders of Definitive Notes so accepted Unrestricted Definitive Notes in the appropriate
principal amount.

          (g) Legends. The following legends shall appear on the face of all Global Notes and
Definitive Notes issued under this Indenture unless specifically stated otherwise in the applicable
provisions of this Indenture.

     (i) Private Placement Legend. Except as permitted below, each Global Note and each
Definitive Note (and all Notes issued in exchange therefor or substitution thereof) shall
bear the legend in substantially the following form:

     THIS SECURITY HAS NOT BEEN REGISTERED UNDER THE U.S. SECURITIES ACT OF 1933, AS
AMENDED (THE “SECURITIES ACT”). AND, ACCORDINGLY, MAY NOT BE OFFERED OR SOLD WITHIN
THE UNITED STATES OR TO, OR FOR THE ACCOUNT OR BENEFIT OF, U.S. PERSONS EXCEPT AS
SET FORTH BELOW. BY ITS ACQUISITION HEREOF, THE HOLDER (1) REPRESENTS THAT (A) IT
IS A “QUALIFIED INSTITUTIONAL BUYER” (AS DEFINED IN RULE 144A UNDER THE SECURITIES
ACT) OR (B) IT IS NOT A U.S. PERSON AND IS ACQUIRING THIS SECURITY IN AN OFFSHORE
TRANSACTION IN COMPLIANCE WITH RULE 904 UNDER THE SECURITIES ACT, (2) THAT IT WILL
NOT WITHIN ONE YEAR AFTER THE ORIGINAL ISSUANCE OF THIS SECURITY (OR ANY PREDECESSOR
OF THIS SECURITY) RESELL OR OTHERWISE TRANSFER THIS SECURITY EXCEPT (A) TO THE GEO
GROUP, INC. OR ANY SUBSIDIARY THEREOF, (B) INSIDE THE UNITED STATES TO A QUALIFIED
INSTITUTIONAL BUYER IN COMPLIANCE WITH RULE 144A UNDER THE SECURITIES ACT, (C)
OUTSIDE THE UNITED STATES IN AN OFFSHORE TRANSACTION IN COMPLIANCE WITH RULE 904
UNDER THE SECURITIES ACT (IF AVAILABLE), (D) PURSUANT TO THE EXEMPTION FROM
REGISTRATION PROVIDED BY RULE 144 UNDER THE SECURITIES ACT (IF AVAILABLE), (E) IN
ACCORDANCE WITH ANOTHER EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF THE
SECURITIES ACT OR (F) PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER

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THE SECURITIES ACT AND (3) AGREES THAT IT WILL GIVE TO EACH PERSON TO WHOM THIS SECURITY IS TRANSFERRED A NOTICE SUBSTANTIALLY TO THE
EFFECT OF THIS LEGEND. IN CONNECTION WITH ANY TRANSFER OF THIS SECURITY WITHIN ONE
YEAR AFTER THE ORIGINAL ISSUANCE OF THIS SECURITY (OR ANY PREDECESSOR OF THIS
SECURITY) PURSUANT TO (C), (D) OR (E), THE HOLDER MUST, PRIOR TO SUCH TRANSFER,
FURNISH TO THE TRUSTEE AND THE COMPANY SUCH CERTIFICATIONS, LEGAL OPINIONS OR OTHER
INFORMATION AS EITHER OF THEM MAY REASONABLY REQUIRE TO CONFIRM THAT SUCH TRANSFER
IS BEING MADE PURSUANT TO AN EXEMPTION FROM, OR IN A TRANSACTION NOT SUBJECT TO, THE
REGISTRATION REQUIREMENTS OF THE SECURITIES ACT. AS USED HEREIN, THE TERMS
“OFFSHORE TRANSACTION,” “UNITED STATES” AND “U.S. PERSON” HAVE THE MEANING GIVEN TO
THEM BY REGULATION S UNDER THE SECURITIES ACT.

Notwithstanding the foregoing, any Global Note or Definitive Note issued pursuant to
subparagraph (b)(iv), (c)(ii), (c)(iii), (d)(ii), (d)(iii), (e)(ii), (e)(iii) or (f) to this
Section 2.07 (and all Notes issued in exchange therefor or substitution thereof) shall not
bear the Private Placement Legend.

     (ii) Global Note Legend. Each Global Note shall bear a legend in substantially the
following form:

THIS GLOBAL NOTE IS HELD BY THE DEPOSITARY (AS DEFINED IN THIS INDENTURE GOVERNING
THIS NOTE) OR ITS NOMINEE IN CUSTODY FOR THE BENEFIT OF THE BENEFICIAL OWNERS
HEREOF, AND IS NOT TRANSFERABLE TO ANY PERSON UNDER ANY CIRCUMSTANCES EXCEPT THAT
(I) THE TRUSTEE MAY MAKE SUCH NOTATIONS HEREON AS MAY BE REQUIRED PURSUANT TO
SECTION 2.07 OF THIS INDENTURE, (II) THIS GLOBAL NOTE MAY BE EXCHANGED IN WHOLE BUT
NOT IN PART PURSUANT TO SECTION 2.07(a) OF THIS INDENTURE, (III) THIS GLOBAL NOTE
MAY BE DELIVERED TO THE TRUSTEE FOR CANCELLATION PURSUANT TO SECTION 2.12 OF THIS
INDENTURE AND (IV) THIS GLOBAL NOTE MAY BE TRANSFERRED TO A SUCCESSOR DEPOSITARY
WITH THE PRIOR WRITTEN CONSENT OF THE COMPANY.

          (h) Cancellation and/or Adjustment of Global Notes. At such time as all beneficial interests
in a particular Global Note have been exchanged for Definitive Notes or a particular Global Note
has been redeemed, repurchased or canceled in whole and not in part, each such Global Note shall be
returned to or retained and canceled by the Trustee in accordance with Section 2.12 hereof. At any
time prior to such cancellation, if any beneficial interest in a Global Note is exchanged for or
transferred to a Person who shall take delivery thereof in the form of a beneficial interest in
another Global Note or for Definitive Notes, the principal amount of Notes represented by such
Global Note shall be reduced accordingly and an endorsement shall be made on such Global Note by
the Trustee or by the Depositary at the direction of the Trustee

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to reflect such reduction; and if the beneficial interest is being exchanged for or transferred to a Person who shall take delivery
thereof in the form of a beneficial interest in another Global Note, such other Global Note shall
be increased accordingly and an endorsement shall be made on such Global Note by the Trustee or by
the Depositary at the direction of the Trustee to reflect such increase.

     (i) General Provisions Relating to Transfers and Exchanges.

     (i) To permit registrations of transfers and exchanges, the Company shall execute and
the Trustee shall authenticate Global Notes and Definitive Notes upon the Company’s order or
at the Registrar’s request.

     (ii) No service charge shall be made to a Holder of a beneficial interest in a Global
Note or to a Holder of a Definitive Note for any registration of transfer or exchange, but
the Company may require payment of a sum sufficient to cover any transfer tax or similar
governmental charge payable in connection therewith (other than any such transfer taxes or
similar governmental charge payable upon exchange or transfer pursuant to Sections 2.11,
3.06, 3.08, 4.10, 4.14 and 9.05 hereof).

     (iii) The Registrar shall not be required to register the transfer of or exchange any
Note selected for redemption in whole or in part, except the unredeemed portion of any Note
being redeemed in part.

     (iv) All Global Notes and Definitive Notes issued upon any registration of transfer or
exchange of Global Notes or Definitive Notes shall be the valid and legally binding
obligations of the Company, evidencing the same debt, and entitled to the same benefits
under this Indenture, as the Global Notes or Definitive Notes surrendered upon such
registration of transfer or exchange.

     (v) The Company shall not be required (A) to issue, to register the transfer of or to
exchange any Notes during a period beginning at the opening of business 15 days before the
day of mailing of a notice of redemption of Notes under Section 3.02 hereof and ending at
the close of business on the day of such mailing, (B) to register the transfer of or to
exchange any Note so selected for redemption in whole or in part, except the unredeemed
portion of any Note being redeemed in part or (C) to register the transfer of or to exchange
a Note between a record date and the next succeeding Interest Payment Date (as defined in
the Notes).

     (vi) Prior to due presentment for the registration of a transfer of any Note, the
Trustee, any Agent and the Company may deem and treat the Person in whose name any Note is
registered as the absolute owner of such Note for the purpose of receiving payment of
principal of and interest on such Notes and for all other purposes, and none of the Trustee,
any Agent or the Company shall be affected by notice to the contrary.

     (vii) The Trustee shall authenticate Global Notes and Definitive Notes in accordance
with the provisions of Section 2.02 hereof.

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     (viii) All certifications, certificates and Opinions of Counsel required to be
submitted to the Registrar pursuant to this Section 2.07 to effect a registration of
transfer or exchange may be submitted by facsimile with the original to follow by first
class mail.

     (ix) The Trustee shall have no obligation or duty to monitor, determine or inquire as
to compliance with any restrictions on transfer imposed under this Indenture or under
applicable law with respect to any transfer of any interest in any Note other than to
require delivery of such certificates and other documentation or evidence as are expressly
required by, and to do so if and when expressly required by the terms of, this Indenture,
and to examine the same to determine substantial compliance as to form with the express
requirements hereof.

Section 2.08 Replacement Notes.

          (a) If any mutilated Note is surrendered to the Trustee or the Company and the Trustee
receives evidence to its satisfaction of the destruction, loss or theft of any Note, the Company
shall issue and the Trustee, upon receipt of an Authentication Order, shall authenticate a
replacement Note if the Trustee’s requirements are met. An indemnity bond must be supplied by the
Holder that is sufficient in the judgment of the Trustee and the Company to protect the Company,
the Trustee, any Agent and any authenticating agent from any loss that any of them may suffer if a
Note is replaced. The Company may charge for its expenses in replacing a Note.

          (b) Every replacement Note is an additional obligation of the Company and shall be entitled to
all of the benefits of this Indenture equally and proportionately with all other Notes duly issued
hereunder.

Section 2.09 Outstanding Notes.

          (a) The Notes outstanding at any time are all the Notes authenticated by the Trustee except
for those canceled by it, those delivered to it for cancellation, those reductions in the interest
in a Global Note effected by the Trustee in accordance with the provisions hereof, and those
described in this Section as not outstanding. Except as set forth in Section 2.10 hereof, a Note
does not cease to be outstanding because the Company or an Affiliate of the Company holds the Note; however, Notes held by the Company or a
Subsidiary of the Company shall not be deemed to be outstanding for purposes of Section 3.07(b)
hereof.

          (b) If a Note is replaced pursuant to Section 2.08 hereof, it ceases to be outstanding unless
the Trustee receives proof satisfactory to it that the replaced Note is held by a bona fide
purchaser.

          (c) If the principal amount of any Note is considered paid under Section 4.01 hereof, it
ceases to be outstanding and interest on it ceases to accrue.

          (d) If the Paying Agent (other than the Company, a Subsidiary or an Affiliate of any of the
foregoing) holds, on a redemption date or maturity date, money sufficient to pay Notes payable on
that date, then on and after that date such Notes shall be deemed to be no longer outstanding and
shall cease to accrue interest.

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Section 2.10 Treasury Notes.

          In determining whether the Holders of the required principal amount of Notes have concurred in
any direction, waiver or consent, Notes owned by the Company, or by any Person directly or
indirectly controlling or controlled by or under direct or indirect common control with the
Company, shall be considered as though not outstanding, except that for the purposes of determining
whether the Trustee shall be protected in relying on any such direction, waiver or consent, only
Notes that a Responsible Officer of the Trustee actually knows are so owned shall be so
disregarded.

Section 2.11 Temporary Notes.

          (a) Until certificates representing Notes are ready for delivery, the Company may prepare and
the Trustee, upon receipt of an Authentication Order, shall authenticate temporary Notes.
Temporary Notes shall be substantially in the form of certificated Notes but may have variations
that the Company considers appropriate for temporary Notes and as shall be reasonably acceptable to
the Trustee. Without unreasonable delay, the Company shall prepare and the Trustee shall
authenticate Definitive Notes in exchange for temporary Notes.

          (b) Holders of temporary Notes shall be entitled to all of the benefits of this Indenture.

Section 2.12 Cancellation.

          The Company at any time may deliver Notes to the Trustee for cancellation. The Registrar and
Paying Agent shall forward to the Trustee any Notes surrendered to them for registration of
transfer, exchange or payment. The Trustee and no one else shall cancel all Notes surrendered for
registration of transfer, exchange, payment, replacement or cancellation and shall dispose of
canceled Notes in accordance with its procedures for the disposition of canceled securities in
effect as of the date of such disposition (subject to the record retention requirement of the
Exchange Act). Certification of the disposition of all canceled Notes shall be delivered to the
Company. The Company may not issue new Notes to replace Notes that it has paid or that have been
delivered to the Trustee for cancellation.

Section 2.13 Defaulted Interest.

          If the Company defaults in a payment of interest on the Notes, it shall pay the defaulted
interest in any lawful manner plus, to the extent lawful, interest payable on the defaulted
interest, to the Persons who are Holders on a subsequent special record date, in each case at the
rate provided in the Notes and in Section 4.01 hereof. The Company shall notify the Trustee in
writing of the amount of defaulted interest proposed to be paid on each Note and the date of the
proposed payment. The Company shall fix or cause to be fixed each such special record date and
payment date, provided that no such special record date shall be less than 10 days prior to the
related payment date for such defaulted interest. At least 15 days before the special record date,
the Company (or, upon the written request of the Company, the Trustee in the name and at the
expense of the Company) shall mail or cause to be mailed to Holders a notice that states the
special record date, the related payment date and the amount of such interest to be paid.

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Section 2.14 CUSIP Numbers.

          The Company in issuing the Notes may use “CUSIP” numbers (if then generally in use), and, if
so, the Trustee shall use “CUSIP” numbers in notices of redemption as a convenience to Holders;
provided that any such notice may state that no representation is made as to the correctness of
such numbers either as printed on the Notes or as contained in any notice of a redemption and that
reliance may be placed only on the other identification numbers printed on the Notes, and any such
redemption shall not be affected by any defect in or omission of such numbers. The Company shall
promptly notify the Trustee in writing of any change in the “CUSIP” numbers.

ARTICLE THREE

REDEMPTION AND PREPAYMENT;

SATISFACTION AND DISCHARGE

Section 3.01 Notices to Trustee.

          If the Company elects to redeem Notes pursuant to the optional redemption provisions of
Section 3.07 hereof, it shall furnish to the Trustee, at least 30 days but not more than 60 days
before a redemption date, an Officers’ Certificate setting forth (i) the clause of this Indenture
pursuant to which the redemption shall occur, (ii) the redemption date, (iii) the principal amount
of Notes to be redeemed and (iv) the redemption price.

Section 3.02 Selection of Notes to Be Redeemed.

          (a) If less than all of the Notes are to be redeemed or purchased in an offer to purchase at
any time, the Trustee shall select the Notes to be redeemed or purchased among the Holders of the
Notes in compliance with the requirements of the principal national securities exchange, if any, on
which the Notes are listed or, if the Notes are not so listed, on a pro rata basis, by lot or in
accordance with any other method the Trustee considers fair and appropriate. In the event of
partial redemption by lot, the particular Notes to be redeemed shall be selected, unless otherwise
provided herein, not less than 30 nor more than 60 days prior to the redemption date by the Trustee
from the outstanding Notes not previously called for redemption.

          (b) The Trustee shall promptly notify the Company in writing of the Notes selected for
redemption and, in the case of any Note selected for partial redemption, the principal amount at
maturity thereof to be redeemed. No Notes in amounts of $2,000 or less shall be redeemed in part.
Notes and portions of Notes selected shall be in amounts of $2,000 or whole multiples of $1,000;
except that if all of the Notes of a Holder are to be redeemed, the entire outstanding amount of
Notes held by such Holder, even if not a multiple of $1,000, shall be redeemed. Except as provided
in the preceding sentence, provisions of this Indenture that apply to Notes called for redemption
also apply to portions of Notes called for redemption.

Section 3.03 Notice of Redemption.

          (a) Subject to the provisions of Section 3.08 hereof, at least 30 days but not more than 60
days before a redemption date, the Company shall mail or cause to be mailed, by first class mail, a
notice of redemption to each Holder whose Notes are to be redeemed at its

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registered address, except that redemption notices may be mailed more than 60 days prior to a
redemption date if the notice is issued in connection with a defeasance of the Notes or a
satisfaction and discharge of this Indenture.

          The notice shall identify the Notes (including CUSIP numbers) to be redeemed and shall
state:

          (i) the redemption date;

          (ii) the redemption price;

     (iii) if any Note is being redeemed in part, the portion of the principal amount at
maturity of such Note to be redeemed and that, after the redemption date upon surrender of
such Note, a new Note or Notes in principal amount equal to the unredeemed portion of the
original Note shall be issued in the name of the Holder thereof upon cancellation of the
original Note;

     (iv) the name and address of the Paying Agent;

     (v) that Notes called for redemption must be surrendered to the Paying Agent to collect
the redemption price and become due on the date fixed for redemption;

     (vi) that, unless the Company defaults in making such redemption payment, interest on
Notes called for redemption ceases to accrue on and after the redemption date;

     (vii) the paragraph of the Notes and/or Section of this Indenture pursuant to which the
Notes called for redemption are being redeemed; and

     (viii) that no representation is made as to the correctness or accuracy of the CUSIP
number, if any, listed in such notice or printed on the Notes.

          (b) At the Company’s request, the Trustee shall give the notice of redemption in the Company’s
name and at its expense; provided, however, that the Company shall have delivered to the Trustee,
at least 45 days prior to the redemption date, an Officers’ Certificate requesting that the Trustee
give such notice and setting forth the information to be stated in such notice as provided in the
preceding paragraph. The notice, if mailed in the manner provided herein shall be presumed to have
been given, whether or not the Holder receives such notice.

Section 3.04 Effect of Notice of Redemption.

          Once notice of redemption is mailed in accordance with Section 3.03 hereof, Notes called for
redemption become irrevocably due and payable on the redemption date at the redemption price. A
notice of redemption may not be conditional.

Section 3.05 Deposit of Redemption Price.

          (a) One Business Day prior to the redemption date, the Company shall deposit with the Trustee
or with the Paying Agent money sufficient to pay the redemption price of and

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accrued interest and Liquidated Damages, if any, on all Notes to be redeemed on that date.
The Trustee or the Paying Agent shall promptly return to the Company any money deposited with the
Trustee or the Paying Agent by the Company in excess of the amounts necessary to pay the redemption
price of, and accrued interest on, all Notes to be redeemed.

          (b) If the Company complies with the provisions of the preceding paragraph, on and after the
redemption date, interest shall cease to accrue on the Notes or the portions of Notes called for
redemption. If a Note is redeemed on or after an interest record date but on or prior to the
related interest payment date, then any accrued and unpaid interest shall be paid to the Person in
whose name such Note was registered at the close of business on such record date. If any Note
called for redemption shall not be so paid upon surrender for redemption because of the failure of
the Company to comply with the preceding paragraph, interest shall be paid on the unpaid principal,
from the redemption date until such principal is paid, and to the extent lawful on any interest not
paid on such unpaid principal, in each case at the rate provided in the Notes and in Section 4.01
hereof.

Section 3.06 Notes Redeemed in Part.

          Upon surrender of a Note that is redeemed in part, the Company shall issue and the Trustee
shall authenticate for the Holder at the expense of the Company a new Note equal in principal
amount to the unredeemed portion of the Note surrendered. No Notes in denominations of $2,000 or
less shall be redeemed in part.

Section 3.07 Optional Redemption.

          (a) At any time on or prior to October 15, 2012, the Company may on any one or more occasions
redeem up to 35% of the aggregate principal amount of Notes issued hereunder at a redemption price
of 107.750% of the principal amount thereof, plus accrued and unpaid interest and Liquidated
Damages, if any, to the redemption date, with the net cash proceeds of one or more Equity
Offerings; provided that (A) at least 65% of the aggregate principal amount of the Notes issued
under this Indenture remains outstanding immediately after the occurrence of such redemption,
excluding Notes held by the Company and its Subsidiaries; and (B) the redemption must occur within
90 days of the date of the closing of such Equity Offering.

          (b) At any time prior to October 15, 2013, the Company may, at its option, redeem all or a
part of the Notes upon not less than 30 nor more than 60 days’ prior notice at a redemption price
equal to the sum of (A) 100% of the principal amount thereof, plus (B) the Applicable Premium as of
the date of redemption, plus (C) accrued and unpaid interest and Liquidated Damages, if any, to the
date of redemption.

          (c) Except as set forth in clauses (a) and (b) of this Section 3.07, the Company shall not
have the option to redeem the Notes pursuant to this Section 3.07 on or prior to October 15, 2013.
Thereafter, the Company may redeem all or a part of the Notes upon not less than 30 nor more than
60 days’ notice, at the redemption prices (expressed as percentages of principal amount) set forth
below plus accrued and unpaid interest and Liquidated Damages, if

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any, thereon, to the applicable redemption date, if redeemed during the twelve-month period
beginning on October 15 of the years indicated below:

	 	 	 	 	 
	Year	 	Percentage	 
	2013
	 	 	103.875	%
	2014
	 	 	101.938	%
	2015 and thereafter
	 	 	100.000	%

          (d) Any redemption pursuant to this Section 3.07 shall be made pursuant to the provisions of
Sections 3.01 through 3.06 hereof.

Section 3.08 Repurchase Offers.

          In the event that, pursuant to Sections 4.10 and 4.14 hereof, the Company shall be required to
commence an offer to all Holders to purchase their respective Notes (a “Repurchase Offer”), it
shall follow the procedures specified below.

          The Repurchase Offer shall remain open for a period of 20 Business Days following its
commencement and no longer, except to the extent that a longer period is required by applicable law
(the “Offer Period”). No later than five Business Days after the termination of the Offer Period
(the “Purchase Date”), the Company shall purchase the principal amount of Notes required to be
purchased pursuant to Sections 4.10 and 4.14 hereof (the “Offer Amount”) or, if less than the Offer
Amount has been tendered, all Notes tendered in response to the Repurchase Offer. Payment for any
Notes so purchased shall be made in the same manner as interest payments are made.

          If the Purchase Date is on or after an interest record date and on or before the related
interest payment date, any accrued and unpaid interest shall be paid to the Person in whose name a
Note is registered at the close of business on such record date, and no additional interest shall
be payable to Holders who tender Notes pursuant to the Repurchase Offer.

          Upon the commencement of a Repurchase Offer, the Company shall send, by first class mail, a
notice to the Trustee and each of the Holders, with a copy to the Trustee. The notice shall
contain all instructions and materials necessary to enable such Holders to tender Notes pursuant to
the Repurchase Offer. The Repurchase Offer shall be made to all Holders. The notice, which shall
govern the terms of the Repurchase Offer, shall state:

     (i) that the Repurchase Offer is being made pursuant to this Section 3.08 and Section
4.10 or Section 4.14 hereof, and the length of time the Repurchase Offer shall remain open;

     (ii) the Offer Amount, the purchase price and the Purchase Date;

     (iii) that any Note not tendered or accepted for payment shall continue to accrete or
accrue interest and Liquidated Damages, if any;

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     (iv) that, unless the Company defaults in making such payment, any Note (or portion
thereof) accepted for payment pursuant to the Repurchase Offer shall cease to accrete or
accrue interest and Liquidated Damages, if any, after the Purchase Date;

     (v) that Holders electing to have a Note purchased pursuant to a Repurchase Offer may
elect to have Notes purchased in principal amounts of $2,000 or in integral multiples of
$1,000 only;

     (vi) that Holders electing to have a Note purchased pursuant to any Repurchase Offer
shall be required to surrender the Note, with the form entitled “Option of Holder to Elect
Purchase” on the reverse of the Note completed, or transfer by book-entry transfer, to the
Company, the Depositary, if appointed by the Company, or a Paying Agent at the address
specified in the notice at least three days before the Purchase Date;

     (vii) that Holders shall be entitled to withdraw their election if the Company, the
Depositary or the Paying Agent, as the case may be, receives, not later than the expiration
of the Offer Period, a facsimile transmission or letter setting forth the name of the
Holder, the principal amount of the Note the Holder delivered for purchase and a statement
that such Holder is withdrawing his election to have such Note purchased;

     (viii) that, if the aggregate amount of Notes surrendered by Holders exceeds the Offer
Amount, the Trustee shall select the Notes to be purchased on a pro rata basis or in
accordance with the procedures of the Depositary (with such adjustments as may be deemed
appropriate by the Trustee so that only Notes in denominations of $2,000, or integral
multiples of $1,000 in excess thereof, shall be purchased); and

     (ix) that Holders whose Notes were purchased only in part shall be issued new Notes
equal in principal amount to the unpurchased portion of the Notes surrendered (or
transferred by book-entry transfer).

          On the Purchase Date, the Company shall, to the extent lawful, accept for payment, on a pro
rata basis to the extent necessary, the Offer Amount of Notes (or portions thereof) tendered
pursuant to the Repurchase Offer, or if less than the Offer Amount has been tendered, all Notes
tendered, and shall deliver to the Trustee an Officers’ Certificate stating that such Notes (or
portions thereof) were accepted for payment by the Company in accordance with the terms of this
Section 3.08. The Company, the Depositary or the Paying Agent, as the case may be, shall promptly
(but in any case not later than five days after the Purchase Date) mail or deliver to each
tendering Holder an amount equal to the purchase price of Notes tendered by such Holder, as the
case may be, and accepted by the Company for purchase, and the Company, shall promptly issue a new
Note. The Trustee, upon written request from the Company shall authenticate and mail or deliver
such new Note to such Holder, in a principal amount at maturity equal to any unpurchased portion of
the Note surrendered. Any Note not so accepted shall be promptly mailed or delivered by the
Company to the respective Holder thereof. The Company shall publicly announce the results of the
Repurchase Offer as soon as practicable after the Purchase Date.

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          The Company shall comply with the requirements of Rule 14e-1 under the Exchange Act, and any
other securities laws and regulations thereunder to the extent such laws or regulations are
applicable in connection with the repurchase of the Notes pursuant to an Asset Sale Offer.

          Other than as specifically provided in this Section 3.08, any purchase pursuant to this
Section 3.08 shall be made pursuant to the provisions of Sections 3.01 through 3.06 hereof.

Section 3.09 Application of Trust Money.

          All money deposited with the Trustee pursuant to Section 11.02 shall be held in trust and
applied by it, in accordance with the provisions of the Notes and this Indenture, to the payment,
either directly or through any Paying Agent (including the Company acting as its own Paying Agent)
as the Trustee may determine, to the Persons entitled thereto, of the principal (and premium, if
any) and interest for whose payment such money has been deposited with the Trustee; but such money
need not be segregated from other funds except to the extent required by law.

ARTICLE FOUR

COVENANTS

Section 4.01 Payment of Notes.

          (a) The Company shall pay or cause to be paid the principal of, premium, if any, and interest
on the Notes on the dates and in the manner provided in the Notes. Principal, premium, if any, and
interest shall be considered paid on the date due if the Paying Agent, if other than the Company or
one of its Subsidiaries, holds as of 11:00 a.m. Eastern Time on the due date money deposited by the
Company in immediately available funds and designated for and sufficient to pay all principal,
premium, if any, and interest then due. The Company shall pay all Liquidated Damages, if any, in
the same manner on the dates and in the amounts set forth in the Registration Rights Agreement.

          (b) The Company shall pay interest (including post-petition interest in any proceeding under
any Bankruptcy Law) on overdue principal at the rate equal to 1% per annum in excess of the then
applicable interest rate on the Notes to the extent lawful; it shall pay interest (including
post-petition interest in any proceeding under any Bankruptcy Law) on overdue installments of
interest, and Liquidated Damages (without regard to any applicable grace period) at the same rate
to the extent lawful.

Section 4.02 Maintenance of Office or Agency.

          (a) The Company shall maintain in the Borough of Manhattan, The City of New York, an office or
agency (which may be an office of the Trustee or an agent of the Trustee, Registrar or
co-registrar) where Notes may be surrendered for registration of transfer or for exchange and where
notices and demands to or upon the Company in respect of the Notes and this Indenture may be
served. The Company shall give prompt written notice to the Trustee of the location, and any
change in the location, of such office or agency. If at any time the Company shall fail to
maintain any such required office or agency or shall fail to furnish the

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Trustee with the address thereof, such presentations, surrenders, notices and demands may be
made or served at the Corporate Trust Office of the Trustee.

          (b) The Company may also from time to time designate one or more other offices or agencies
where the Notes may be presented or surrendered for any or all such purposes and may from time to
time rescind such designations; provided, however, that no such designation or rescission shall in
any manner relieve the Company of its obligation to maintain an office or agency in the Borough of
Manhattan, The City of New York for such purposes. The Company shall 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.

          (c) The Company hereby designates the Corporate Trust Office of the Trustee as one such office
or agency of the Company in accordance with Section 2.04 hereof.

Section 4.03 Reports.

          (a) Whether or not required by the SEC, so long as any Notes are outstanding, the Company
shall furnish to the Holders of Notes, within the time periods specified in the SEC’s rules and
regulations:

     (i) all quarterly and annual financial information that would be required to be
contained in a filing with the SEC on Forms 10-Q and 10-K if the Company were required to
file such Forms, including a “Management’s Discussion and Analysis of Financial Condition
and Results of Operations” and, with respect to the annual information only, a report on the
annual financial statements by the Company’s certified independent accountants; and

     (ii) all current reports that would be required to be filed with the SEC on Form 8-K if
the Company were required to file such reports.

          (b) In addition, whether or not required by the SEC, the Company shall file a copy of all of
the information and reports referred to in clauses (a)(i) and (ii) above with the SEC for public
availability within the time periods specified in the SEC’s rules and regulations (unless the SEC
will not accept such a filing) and make such information available to prospective investors upon
request. In addition, the Company shall, for so long as any Notes remain outstanding, furnish to
the Holders and to prospective investors, upon their request, the information required to be
delivered pursuant to Rule 144A(d)(4) under the Securities Act, if any such information is required
to be delivered.

          (c) If the Company has designated any of its Subsidiaries as Unrestricted Subsidiaries, then
the quarterly and annual financial information required by the preceding paragraph shall include a
reasonably detailed presentation, either on the face of the financial statements or in the
footnotes thereto, and in “Management’s Discussion and Analysis of Financial Condition and Results
of Operations,” of the financial condition and results of operations of the Company and its
Restricted Subsidiaries separate from the financial condition and results of operations of the
Unrestricted Subsidiaries of the Company.

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          Notwithstanding anything herein to the contrary, the Company will not be deemed to have failed
to comply with any of its obligations hereunder for purposes of Section 6.01(a)(iv) of this
Indenture until 120 days after the date any report under this Section 4.03 is due.

          Delivery of such reports, information and documents to the Trustee is for informational
purposes only and the Trustee’s receipt of such shall not constitute constructive notice of any
information contained therein or determinable from information contained therein, including the
Company’s compliance with any of its covenants hereunder (as to which the Trustee is entitled to
rely exclusively on Officers’ Certificates).

Section 4.04 Compliance Certificate.

          (a) The Company shall and shall cause each Guarantor (to the extent that such Guarantor is so
required under the TIA) to deliver to the Trustee, within 90 days after the end of each fiscal
year, an Officers’ Certificate stating that a review of the activities of the Company and its
Subsidiaries during the preceding fiscal year has been made under the supervision of the signing
Officers with a view to determining whether the Company has kept, observed, performed and fulfilled
its obligations under this Indenture, and further stating, as to each such Officer signing such
certificate, that to the best of his or her knowledge, the Company has kept, observed, performed
and fulfilled its obligations under this Indenture and is not in default in the performance or
observance of any of the terms, provisions and conditions of this Indenture (or, if a Default or
Event of Default shall have occurred, describing all such Defaults or Events of Default of which he
or she may have knowledge and what action the Company is taking or proposes to take with respect
thereto) and that to the best of his or her knowledge no event has occurred and remains in
existence by reason of which payments on account of the principal of or interest, if any, on the
Notes is prohibited or if such event has occurred, a description of the event and what action the
Company is taking or proposes to take with respect thereto.

          (b) So long as not contrary to the then current recommendations of the American Institute of
Certified Public Accountants, the year-end financial statements delivered pursuant to Section
4.03(a) above shall be accompanied by a written statement of the Company’s independent public
accountants (which shall be a firm of established national reputation) that in making the
examination necessary for certification of such financial statements, nothing has come to their
attention that would lead them to believe that the Company has violated any provisions of Article
Four or Article Five hereof or, if any such violation has occurred, specifying the nature and
period of existence thereof, it being understood that such accountants shall not be liable directly
or indirectly to any Person for any failure to obtain knowledge of any such violation.

          (c) The Company shall, so long as any of the Notes are outstanding, deliver to the Trustee,
forthwith upon any Officer becoming aware of any Default or Event of Default, an Officers’
Certificate specifying such Default or Event of Default and what action the Company is taking or
proposes to take with respect thereto.

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Section 4.05 Taxes.

          The Company shall pay, and shall cause each of its Subsidiaries to pay, prior to delinquency,
any material taxes, assessments, and governmental levies except such as are contested in good faith
and by appropriate proceedings or where the failure to effect such payment is not adverse in any
material respect to the Holders of the Notes.

Section 4.06 Stay, Extension and Usury Laws.

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

Section 4.07 Restricted Payments.

          (a) The Company shall not, and shall not permit any Restricted Subsidiary to, directly or
indirectly:

     (i) declare or pay any dividend or make any other payment or distribution on account of
the Company’s or any of its Restricted Subsidiaries’ Equity Interests (including, without
limitation, any payment in connection with any merger or consolidation involving the Company
or any Restricted Subsidiary) or to the direct or indirect holders of the Company’s or any
Restricted Subsidiary’s Equity Interests in their capacity as such (other than dividends or
distributions payable (A) in Equity Interests (other than Disqualified Stock) of the Company
or (B) to the Company or a Restricted Subsidiary of the Company);

     (ii) purchase, redeem or otherwise acquire or retire for value (including, without
limitation, in connection with any merger or consolidation involving the Company) any Equity
Interests of the Company;

     (iii) make any payment on or with respect to, or purchase, redeem, defease or otherwise
acquire or retire for value any Indebtedness that is expressly subordinated to the Notes or
any Note Guarantee, except a payment of interest or principal to the Company or any
Restricted Subsidiary or except any payment made at the Stated Maturity thereof (or any
payment, purchase or other acquisition, in anticipation of satisfying a sinking fund
obligation, principal installment or final maturity due within one year); or

     (iv) make any Restricted Investment (all such payments and other actions set forth in
clauses (i) through (iv) above being collectively referred to as “Restricted Payments”),

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unless, at the time of and after giving effect to such Restricted Payment:

          (1) no Default or Event of Default shall have occurred and be continuing or would occur as a
consequence of such Restricted Payment; and

          (2) the Company would, at the time of such Restricted Payment and after giving pro forma
effect thereto as if such Restricted Payment had been made at the beginning of the applicable
four-quarter period, have been permitted to incur at least $1.00 of additional Indebtedness
pursuant to the Fixed Charge Coverage Ratio test set forth in Section 4.09(a); and

          (3) such Restricted Payment, together with the aggregate amount of all other Restricted
Payments made by the Company and its Restricted Subsidiaries after the date hereof (excluding
Restricted Payments permitted by Section 4.07(b), (ii), (iii), (iv) and (v)) and the aggregate of
any Permitted Investments then outstanding pursuant to clause (15) of the definition thereof, is
less than the sum, without duplication, of:

     (A) 50% of the Consolidated Net Income of the Company for the period (taken as
one accounting period) from the beginning of the first fiscal quarter commencing
after the date hereof to the end of the Company’s most recently ended fiscal quarter
for which internal financial statements are available at the time of such Restricted
Payment (or, if such Consolidated Net Income for such period is a deficit, less 100%
of such deficit), plus

     (B) (i) 100% of the aggregate net cash proceeds plus (ii) 100% of the aggregate
fair market value of any Permitted Business or assets used or useful in a Permitted
Business (other than Restricted Investments), in each case, to the extent received
by the Company since the date hereof as a contribution to its common equity capital
or in consideration of the issuance of Equity Interests of the Company (other than
Disqualified Stock), except to the extent used to make an Investment pursuant to
clause (12) or (14) of the definition of Permitted Investments, or from the issue or
sale of Disqualified Stock or debt securities of the Company that have been
converted into or exchanged for such Equity Interests (other than Equity Interests
(or Disqualified Stock or debt securities) sold to a Subsidiary of the Company);
plus

     (C) to the extent that any Restricted Investment that was made after the date
hereof is sold for cash or otherwise liquidated or repaid for cash, the lesser of
(i) the cash return of capital with respect to such Restricted Investment (less the
cost of disposition, if any) and (ii) the initial amount of such Restricted
Investment; plus

     (D) to the extent that any Unrestricted Subsidiary of the Company is
redesignated as a Restricted Subsidiary after the date hereof, the lesser of (i) the
fair market value of the Company’s or any Restricted Subsidary’s Investment in such
Subsidiary as of the date of such redesignation or (ii) the fair market value of the
Company’s or any Restricted Subsidiary’s Investment in such Subsidiary as of the
date on which such Subsidiary was originally designated as an Unrestricted

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Subsidiary to the extent such Investment was treated as a Restricted
Payment, plus the amount of any Investments made in such Subsidiary subsequent to
such designation (or in the case of any Subsidiary that is an Unrestricted
Subsidiary as of the date of this Indenture, subsequent to the date of this
Indenture) to the extent any such Investment was treated as a Restricted Payment by
the Company or any Restricted Subsidiary; plus

     (E) 100% of any other dividends or other distributions received by the Company
or a Restricted Subsidiary since the date hereof from an Unrestricted Subsidiary of
the Company to the extent that such dividends were not otherwise included in
Consolidated Net Income of the Company for such period in an amount not to exceed
the amount of Restricted Investments previously made by the Company and its
Restricted Subsidiaries in such Unrestricted Subsidiary.

          (b) So long as no Default has occurred and is continuing or would be caused thereby, the
preceding provisions will not prohibit:

     (i) the payment of any dividend within 60 days after the date of declaration of the
dividend, if at the date of declaration the dividend payment would have complied with the
provisions of this Indenture;

     (ii) the redemption, repurchase, retirement, defeasance or other acquisition of any
subordinated Indebtedness of the Company or any Guarantor or of any Equity Interests of the
Company in exchange for, or out of the net cash proceeds of the substantially concurrent
sale (other than to a Subsidiary of the Company) of, Equity Interests of the Company (other
than Disqualified Stock); provided that the amount of any such net cash proceeds that are
utilized for any such redemption, repurchase, retirement, defeasance or other acquisition
will be excluded from Section 4.07(a)(3)(B);

     (iii) the defeasance, redemption, repurchase or other acquisition of subordinated
Indebtedness of the Company or any Guarantor with the net cash proceeds from an incurrence
of Permitted Refinancing Indebtedness;

     (iv) the payment of any dividend by a Restricted Subsidiary to the holders of its
Equity Interests on a pro rata basis;

     (v) repurchases of Equity Interests of the Company deemed to occur upon the exercise of
stock options if such Equity Interests represent a portion of the exercise price thereof;

     (vi) the repurchase, redemption or other acquisition or retirement for value of Equity
Interests of the Company or any Restricted Subsidiary of the Company held by any member of
the Company’s (or any Restricted Subsidiary’s) management; provided that the aggregate
amount expended pursuant to this clause (vi) shall not exceed $2.0 million in any
twelve-month period; and

     (vii) Restricted Payments not otherwise permitted in an amount not to exceed $150.0
million.

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          The amount of all Restricted Payments (other than cash) shall be the fair market value on the
date of the Restricted Payment of the asset(s) or securities proposed to be transferred or issued
by the Company or a Restricted Subsidiary, as the case may be, pursuant to the Restricted Payment.
The fair market value of any assets or securities that are required to be valued by this Section
4.07 shall be determined by the Board of Directors of the Company whose resolution with respect
thereto shall be delivered to the Trustee. Except with respect to a Restricted Payment permitted by
Section 4.07(b) above, the Board of Directors’ determination must be based upon an opinion or
appraisal issued by an accounting, appraisal or investment banking firm of national standing if the
fair market value exceeds $10.0 million. Not later than the date on which such Restricted Payment
was made, the Company shall deliver to the Trustee an Officers’ Certificate stating that such
Restricted Payment is permitted and setting forth the basis upon which the calculations required by
this Section 4.07 were computed.

Section 4.08 Dividend and Other Payment Restrictions Affecting Restricted
Subsidiaries.

          (a) The Company shall not, and shall not permit any of its Restricted Subsidiaries to,
directly or indirectly, create or permit to exist or become effective any consensual encumbrance or
consensual restriction of any kind on the ability of any Restricted Subsidiary to:

     (i) pay dividends or make any other distributions on its Capital Stock to the Company
or any of its Restricted Subsidiaries, or with respect to any other interest or
participation in, or measured by, its profits, or pay any Indebtedness owed to the Company
or any of its Restricted Subsidiaries;

     (ii) make loans or advances to the Company or any of its Restricted Subsidiaries; or

     (iii) transfer any of its properties or assets to the Company or any of its Restricted
Subsidiaries.

          (b) However, the restrictions set forth in Section 4.08(a) will not apply to encumbrances or
restrictions existing under or by reason of:

     (i) agreements governing Existing Indebtedness and the Credit Facilities as in effect
on the date hereof and any amendments, modifications, restatements, renewals, increases,
supplements, refundings, replacements or refinancings of those agreements; provided that the
amendments, modifications, restatements, renewals, increases, supplements, refundings,
replacement or refinancings are not materially more restrictive, taken as a whole, with
respect to such dividend and other payment restrictions than those contained in those
agreements on the date hereof;

     (ii) this Indenture, the Notes and the Exchange Notes;

     (iii) applicable law, rule, regulation or order;

     (iv) any instrument governing Indebtedness or Capital Stock of a Person acquired by the
Company or any of its Restricted Subsidiaries as in effect at the time of

55

 

such acquisition (except to the extent such Indebtedness or Capital Stock was incurred
in connection with or in contemplation of such acquisition), which encumbrance or
restriction is not applicable to any Person, or the properties or assets of any Person,
other than the Person, or the property or assets of the Person, so acquired; provided that
in the case of Indebtedness, such Indebtedness was permitted by the terms of this Indenture
to be incurred;

     (v) customary non-assignment provisions of any contract or agreement entered into in
the ordinary course of business and customary provisions restricting subletting or transfer
of any interest in real or personal property contained in any lease or easement agreement of
the Company or any Restricted Subsidiary;

     (vi) purchase money obligations for property acquired in the ordinary course of
business that impose restrictions on that property of the nature described in Section
4.08(a)(iii);

     (vii) any agreement for the sale or other disposition of all or substantially all of
the assets or Capital Stock of a Restricted Subsidiary that restricts distributions by that
Restricted Subsidiary pending its sale or other disposition of all or substantially all of
the assets or Capital Stock of such Restricted Subsidiary;

     (viii) Permitted Refinancing Indebtedness; provided that the restrictions contained in
the agreements governing such Permitted Refinancing Indebtedness with respect to dividends
and other payments are not materially more restrictive, taken as a whole, than those
contained in the agreements governing the Indebtedness being refinanced;

     (ix) Liens securing Indebtedness otherwise permitted to be incurred under Section 4.12
that limit the right of the debtor to dispose of the assets subject to such Liens;

     (x) provisions with respect to the disposition or distribution of assets or property in
joint venture agreements, asset sale agreements, stock sale agreements and other similar
agreements entered into in the ordinary course of business;

     (xi) restrictions on cash or other deposits or net worth imposed by customers under
contracts entered into in the ordinary course of business;

     (xii) any Indebtedness incurred in compliance with the Section 4.09 by any Foreign
Subsidiary or any Guarantor, or any agreement pursuant to which such Indebtedness is issued,
if the encumbrance or restriction applies only to such Foreign Subsidiary or Guarantor and
only in the event of a payment default or default with respect to a financial covenant
contained in the Indebtedness or agreement and the encumbrance or restriction is not
materially more disadvantageous to the Holders of the Notes than is customary in comparable
financings (as determined by the Board of Directors of the Company) and the Board of
Directors of the Company determines that any such encumbrance or restriction will not
materially affect the Company’s ability to pay interest or principal on the Notes; or

56

 

     (xiii) an arrangement or circumstance arising or agreed to in the ordinary course of
business, not relating to any Indebtedness, and that does not, individually or in the
aggregate, detract from the value of property or assets of the Company or any Restricted
Subsidiary in any manner material to the Company or any Restricted Subsidiary.

Section 4.09 Incurrence of Indebtedness and Issuance of Preferred Stock.

          (a) The Company shall not, and shall not permit any Restricted Subsidiary to, directly or
indirectly, create, incur, issue, assume, guarantee or otherwise become directly or indirectly
liable, contingently or otherwise, with respect to (collectively, “incur”) any Indebtedness
(including Acquired Debt), and the Company will not issue any Disqualified Stock and will not
permit any Restricted Subsidiary to issue any Disqualified Stock or preferred stock; provided,
however, that the Company may incur Indebtedness (including Acquired Debt) or issue Disqualified
Stock, and any Guarantor may incur Indebtedness or issue Disqualified Stock and any Foreign
Subsidiary may incur Indebtedness, if the Fixed Charge Coverage Ratio for the Company’s most
recently ended four full fiscal quarters for which internal financial statements are available
immediately preceding the date on which such additional Indebtedness is incurred or such
Disqualified Stock or preferred stock is issued would have been at least 2.0 to 1, determined on a
pro forma basis (including a pro forma application of the net proceeds therefrom), as if the
additional Indebtedness had been incurred or the preferred stock or Disqualified Stock had been
issued, as the case may be, at the beginning of such four-quarter period.

          (b) Section 4.09(a) will not prohibit the incurrence of any of the following items of
Indebtedness or the issuance of Disqualified Stock, as set forth below (collectively, “Permitted
Debt”):

     (i) the incurrence by the Company and any Restricted Subsidiary of Indebtedness under
the Credit Agreement in an aggregate principal amount at any one time outstanding under this
clause 4.09(b)(i) not to exceed $525.0 million, less the aggregate amount of all Net
Proceeds of Asset Sales applied by the Company or any Restricted Subsidiary to repay any
Indebtedness under the Credit Agreement and, if the Indebtedness repaid is revolving credit
Indebtedness, to correspondingly reduce commitments with respect thereto, pursuant to
Section 4.10;

     (ii) the incurrence by the Company and any Restricted Subsidiary of Existing
Indebtedness;

     (iii) the incurrence by the Company of Indebtedness represented by the Notes to be
issued on the date hereof and any Guarantees thereof by any Guarantor;

     (iv) the incurrence by the Company or any Restricted Subsidiary of Indebtedness
represented by Capital Lease Obligations, mortgage financings or purchase money obligations,
in each case, incurred for the purpose of financing all or any part of the purchase price or
cost of construction or improvement of property, plant or equipment used in the business of
the Company or such Restricted Subsidiary, in an aggregate principal amount, including all
Permitted Refinancing Indebtedness incurred to refund,

57

 

refinance or replace any Indebtedness incurred pursuant to this clause 4.09(b)(iv), not
to exceed the greater of (i) $20.0 million and (ii) 5.0% of Consolidated Tangible Assets, at
any time outstanding;

     (v) the incurrence by the Company or any of its Restricted Subsidiaries of Permitted
Refinancing Indebtedness in exchange for, or the net proceeds of which are used to refund,
refinance or replace Indebtedness (other than intercompany Indebtedness) that was permitted
by this Indenture to be incurred under Section 4.09(a) or clauses (ii), (iii), (v), or (xi)
of this Section 4.09(b);

     (vi) the incurrence by the Company or any Restricted Subsidiary of intercompany
Indebtedness between or among the Company and any Restricted Subsidiary; provided, however,
that:

          (1) if the Company or any Guarantor is the obligor on such Indebtedness, such
Indebtedness must be expressly subordinated to the prior payment in full in cash of
all Obligations with respect to the Notes, in the case of the Company, or the Note
Guarantee, in the case of a Guarantor; and

          (2) (i) any subsequent issuance or transfer of Equity Interests that results in
any such Indebtedness being held by a Person other than the Company or a Restricted
Subsidiary and (ii) any sale or other transfer of any such Indebtedness to a Person
that is not either the Company or a Restricted Subsidiary; will be deemed, in each
case, to constitute an incurrence of such Indebtedness by the Company or such
Restricted Subsidiary, as the case may be, that was not permitted by this clause
4.09(b)(vi);

     (vii) the incurrence by the Company or any Restricted Subsidiary of Hedging Obligations
that are incurred for the purpose of fixing, hedging or swapping interest rate risk with
respect to any Indebtedness that is permitted by the terms of this Indenture to be
outstanding or for hedging foreign currency exchange risk, in each case to the extent the
Hedging Obligations are incurred in the ordinary course of the Company’s financial
management and not for any speculative purpose;

     (viii) the Guarantee by the Company or any Restricted Subsidiary of Indebtedness of the
Company or a Restricted Subsidiary that was permitted to be incurred by another provision of
this Section 4.09;

     (ix) the accrual of interest, the accretion or amortization of original issue discount,
the payment of interest on any Indebtedness in the form of additional Indebtedness with the
same terms, and the payment of dividends on Disqualified Stock in the
form of additional shares of the same class of Disqualified Stock will not be deemed to be an incurrence of
Indebtedness or an issuance of Disqualified Stock for purposes of this Section 4.09;
provided, in each such case, that the amount thereof is included in Fixed Charges of the
Company as accrued;

     (x) the incurrence by the Company or any Restricted Subsidiary of Indebtedness,
including Indebtedness represented by letters of credit for the account of

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the Company or any Restricted Subsidiary, incurred in respect of workers’ compensation
claims, self-insurance obligations, performance, proposal, completion, surety and similar
bonds and completion guarantees provided by the Company or any Restricted Subsidiary in the
ordinary course of business; provided that the underlying obligation to perform is that of
the Company or its Restricted Subsidiaries and not that of the Company’s Unrestricted
Subsidiaries; provided further that such underlying obligation is not in respect of borrowed
money;

     (xi) the incurrence by the Company or any Restricted Subsidiary of additional
Indebtedness in an aggregate principal amount (or accreted value, as applicable) at any time
outstanding, including all Permitted Refinancing Indebtedness incurred to refund, refinance
or replace any Indebtedness incurred pursuant to this clause (xi), not to exceed $50.0
million;

     (xii) the incurrence by the Company or any Restricted Subsidiary of Indebtedness,
including but not limited to Indebtedness represented by letters of credit for the account
of the Company or any Restricted Subsidiary, arising from agreements of the Company or a
Restricted Subsidiary providing for indemnification, adjustment of purchase price or similar
obligations, in each case, incurred or assumed in connection with the disposition of any
business, assets or Equity Interests of the Company or a Restricted Subsidiary, other than
guarantees of Indebtedness incurred by any Person acquiring all or any portion of such
business, assets or Equity Interests for the purpose of financing such acquisition;

     (xiii) the incurrence by the Company or any Restricted Subsidiary of Indebtedness
arising from the honoring by a bank or other financial institution of a check, draft or
similar instrument (except in the case of daylight overdrafts) drawn against insufficient
funds in the ordinary course of business, provided that such Indebtedness is extinguished
within five Business Days of incurrence; or

     (xiv) the issuance of preferred stock of a Restricted Subsidiary to the Company that is
pledged to secure the Credit Agreement, provided that any subsequent transfer that results
in such preferred stock being held by a Person other than the Company or a Restricted
Subsidiary will be deemed to constitute an issuance of preferred stock not permitted by this
clause (xiv).

          (c) For purposes of determining compliance with any restriction on the incurrence of
Indebtedness where the Indebtedness incurred is not denominated in U.S. dollars, the amount of such
Indebtedness will be the U.S. Dollar Equivalent determined on the date of incurrence of such
Indebtedness; provided, however, that if any such Indebtedness not denominated in U.S. dollars is
subject to a Hedging Obligation with respect to U.S. dollars covering all principal, premium, if
any, and interest payable on such Indebtedness, the amount of such Indebtedness expressed in U.S.
dollars will be as provided in such Hedging Obligation. The principal amount of any Permitted
Refinancing Indebtedness incurred in the same currency as the Indebtedness being refinanced will be
the U.S. Dollar Equivalent of the Indebtedness refinanced, except to the extent that (i) such U.S.
Dollar Equivalent was determined based on a Hedging Obligation, in which case the Permitted
Refinancing Indebtedness will be determined in

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accordance with the preceding sentence, and (ii) the principal amount of the Permitted
Refinancing Indebtedness exceeds the principal amount of the Indebtedness being refinanced, in
which case the U.S. Dollar Equivalent of such excess will be determined on the date such Permitted
Refinancing Indebtedness is Incurred.

          (d) For purposes of determining compliance with this Section 4.09, in the event that an item
of proposed Indebtedness meets the criteria of more than one of the categories of Permitted Debt
described in clauses (i) through (xiv) of Section 4.09(b), or is entitled to be incurred pursuant
to Section 4.09(a), the Company will be permitted to classify such item of Indebtedness on the date
of its incurrence, or later reclassify all or a portion of such item of Indebtedness, in any manner
that complies with this Section 4.09. Indebtedness under the Credit Agreement outstanding on the
date on which Notes are first issued and authenticated under this Indenture will be deemed to have
been incurred on such date in reliance on the exception provided in Section 4.09(b)(i).

          (e) The Company shall not, and shall not permit any Guarantor, to incur any Indebtedness
(including Permitted Debt) that is contractually subordinated in right of payment to any other
Indebtedness of the Company or such Guarantor unless such Indebtedness is also contractually
subordinated in right of payment to the Notes or such Note Guarantee on substantially identical
terms; provided, however, that no Indebtedness of the Company or any Guarantor will be deemed to be
contractually subordinated in right of payment to any other Indebtedness of the Company or any
Guarantor solely by virtue of being unsecured or by virtue of the fact that the holders of secured
Indebtedness have entered into intercreditor arrangements giving one or more of such holders
priority over the other holders in the collateral held by them.

Section 4.10 Asset Sales.

          (a) The Company shall not, and shall not permit any of its Restricted Subsidiaries to,
consummate an Asset Sale unless:

     (i) the Company (or the Restricted Subsidiary, as the case may be) receives
consideration at the time of the Asset Sale at least equal to the fair market value of the
assets or Equity Interests issued or sold or otherwise disposed of (except in respect of
Designated Assets sold pursuant to a Designated Asset Contract);

     (ii) the fair market value or Designated Asset Value, as applicable, in the case of any
Asset Sales or series of related Asset Sales having a fair market value of $25.0 million or
more, is determined by the Company’s Board of Directors and evidenced by a resolution of
Board of Directors set forth in an Officers’ Certificate delivered to the Trustee; and

     (iii) at least 75% of the consideration received in the Asset Sale by the Company or
such Restricted Subsidiary is in the form of cash or Cash Equivalents. For purposes of this
Section 4.10(a)(iii) only, each of the following will be deemed to be cash:

          (1) any liabilities, as shown on the Company’s or such Restricted Subsidiary’s
most recent balance sheet, of the Company or any

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Restricted Subsidiary (other than contingent liabilities and liabilities that
are by their terms subordinated to the Notes or any Guarantee) that are assumed by
the transferee of any such assets pursuant to a customary novation agreement that
releases the Company or such Restricted Subsidiary from further liability; and

          (2) any securities, notes or other obligations received by the Company or any
such Restricted Subsidiary from such transferee that are converted by the Company or
such Restricted Subsidiary into cash or Cash Equivalents within 90 days after the
applicable Asset Sale, to the extent of the cash or Cash Equivalents received in
that conversion.

          (3) notes or other obligations or Indebtedness actually received by the Company
or any such Restricted Subsidiary as consideration for the sale or other disposition
of a Designated Asset pursuant to a Designated Asset Contract, but only to the
extent that such notes or other obligations or Indebtedness were explicitly required
to be included, or permitted to be included solely at the option of the purchaser,
in such consideration pursuant to such contract;

          (4) Indebtedness actually received by the Company or any such Restricted
Subsidiary as consideration for the sale or other disposition of an Unoccupied
Facility, in an aggregate principal amount, in any fiscal year of the Company, when
taken together with all Indebtedness received as consideration pursuant to this
clause (4) since the date hereof (but, to the extent that the principal of any
Indebtedness received pursuant to this clause (4) is repaid in cash or such
Indebtedness is sold or otherwise liquidated for cash, minus the amount of such cash
received), not to exceed $20 million; and

          (5) any Designated Non-Cash Consideration received by the Company or any such
Restricted Subsidiary in the Asset Sale, in an aggregate amount in any fiscal year
of the Company (measured on the date such Designated Non-Cash Consideration was
received without giving effect to subsequent changes in value), when taken together
with all other Designated Non-Cash Consideration received as consideration pursuant
to this clause (5) during such fiscal year (but, to the extent that any such
Designated Non-Cash Consideration is sold or otherwise liquidated for cash, minus
the lesser of (x) the amount of the cash received (less the cost of disposition, if
any) and (y) the initial amount of such Designated Non-Cash Consideration), not to
exceed $25 million.

          (b) Notwithstanding subsection (a) of this Section 4.10, the Company and its Restricted
Subsidiaries may engage in Asset Swaps; provided that:

     (i) immediately after giving effect to such Asset Swap, the Company would be permitted
to incur at least $1.00 of additional Indebtedness pursuant to the Fixed Charge Coverage
Ratio test set forth in Section 4.09(a) hereof; and

     (ii) the Board of Directors of the Company determines that the fair market value of the
assets received by the Company or the Restricted Subsidiary in the Asset Swap is not less
than the fair market value of the assets disposed of by the Company or

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such Restricted Subsidiary in such Asset Swap and such determination is evidenced by a
resolution of the Board of Directors set forth in an Officers’ Certificate delivered to the
Trustee.

          (c) Within 360 days after the receipt of any Net Proceeds from an Asset Sale, the Company or
the applicable Restricted Subsidiary may apply those Net Proceeds, at its option:

     (i) to repay permanently Indebtedness under the Credit Agreement (and with respect to
Net Proceeds of a Restricted Subsidiary that is not a Guarantor, Indebtedness of such
Restricted Subsidiary) and, if the Indebtedness permanently repaid is revolving credit
Indebtedness, to correspondingly reduce commitments with respect thereto;

     (ii) to acquire, or enter into a definitive agreement to acquire, all or substantially
all of the assets of, a Permitted Business or a majority of the Voting Stock of a Person
engaged in a Permitted Business, provided that such Person becomes a Restricted Subsidiary
and provided further, however, in the case of a definitive agreement, that such acquisition
closes within 120 days of such 360 day period;

     (iii) to make a capital expenditure in or that is used or useful in a Permitted
Business (provided that the completion of (a) construction of new facilities, (b) expansions
to existing facilities and (c) repair or construction of damaged or destroyed facilities, in
each case, which commences within such 360 days may extend for an additional 360 day period
if the Net Proceeds to be used for such construction, expansion or repair are committed
specifically for such activity within such 360 days); or

     (iv) to acquire other long-term assets that are used or useful in a Permitted Business.

          Pending the final application of any Net Proceeds, the Company may temporarily reduce
revolving credit borrowings or otherwise invest the Net Proceeds in any manner that is not
prohibited by this Indenture.

          (d) Any Net Proceeds from Asset Sales that are not applied or invested as provided in the
preceding paragraph, or that the Company determines will not be applied or invested as provided in
the preceding paragraph, will constitute “Excess Proceeds.” When the aggregate amount of Excess
Proceeds exceeds $25.0 million, the Company shall make an offer (an “Asset Sale Offer”) to all
Holders of Notes and, at the Company’s option, all holders of other Indebtedness that is pari passu
with the Notes containing provisions similar to those set forth in this Indenture with respect to
offers to purchase or redeem with the proceeds of sales of assets, to purchase on a pro rata basis
the maximum principal amount of Notes and such other pari passu Indebtedness that may be purchased
out of the Excess Proceeds. The offer price in any Asset Sale Offer will be equal to 100% of the
principal amount, plus accrued and unpaid interest and Liquidated Damages, if any, to the date of
purchase, and shall be payable in cash. If any Excess Proceeds remain after consummation of an
Asset Sale Offer, the Company may use those Excess Proceeds for any purpose not otherwise
prohibited by this Indenture. If the aggregate principal amount of Notes and other pari passu
Indebtedness tendered into such Asset Sale Offer exceeds the amount of Excess Proceeds, the Notes
and such other pari passu Indebtedness shall

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be purchased on a pro rata basis. Upon completion of each Asset Sale Offer, the amount of
Excess Proceeds will be reset at zero.

          (e) The Company shall comply with the requirements of Rule 14e-1 under the Exchange Act and
any other securities laws and regulations thereunder to the extent those laws and regulations are
applicable in connection with each repurchase of Notes pursuant to an Asset Sale Offer. To the
extent that the provisions of any securities laws or regulations conflict with the Asset Sale
provisions of this Indenture, the Company shall comply with the applicable securities laws and
regulations and shall not be deemed to have breached its obligations under Section 4.10 by virtue
of such conflict.

Section 4.11 Transactions with Affiliates.

          (a) The Company shall not, and shall not permit any of its Restricted Subsidiaries to, make
any payment to, or sell, lease, transfer or otherwise dispose of any of its properties or assets
to, or purchase any property or assets from, or enter into or amend any contract, agreement, loan,
advance or guarantee with, or for the benefit of, any Affiliate (each, an “Affiliate Transaction”),
unless:

     (i) such Affiliate Transaction is on terms that are no less favorable to the Company or
the relevant Restricted Subsidiary than those that would have been obtained in a comparable
transaction by the Company or such Restricted Subsidiary with an unrelated Person; and

     (ii) the Company delivers to the Trustee:

          (1) with respect to any Affiliate Transaction or series of related Affiliate
Transactions involving aggregate consideration in excess of $10.0 million, a
resolution of the Board of Directors of the Company set forth in an Officers’
Certificate certifying that such Affiliate Transaction complies with this Section
4.11 and that such Affiliate Transaction has been approved by a majority of the
disinterested members of the Board of Directors of the Company; and

          (2) except with respect to leases of facilities entered into in the ordinary
course of business with a Wholly Owned Subsidiary, with respect to any Affiliate
Transaction or series of related Affiliate Transactions involving aggregate
consideration in excess of $25.0 million, an opinion as to the fairness to the
Company of such Affiliate Transaction from a financial point of view issued by an
accounting, appraisal or investment banking firm of national standing.

          (b) The following items shall be deemed not to be Affiliate Transactions and, therefore, will
not be subject to the provisions of Section 4.11(a):

     (i) indemnity agreements and reasonable employment arrangements (including severance
and retirement agreements) entered into by the Company or any of its Restricted Subsidiaries
in the ordinary course of business of the Company or such Restricted Subsidiary, in each
case approved by the disinterested members of the Board of Directors of the Company;

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     (ii) transactions between or among the Company and/or its Restricted Subsidiaries;

     (iii) payment of reasonable directors fees to Persons who are not otherwise Affiliates
of the Company;

     (iv) sales of Equity Interests (other than Disqualified Stock) of the Company;

     (v) Permitted Investments and Restricted Payments that are permitted by Section 4.07;

     (vi) any issuance of securities, or other payments, awards or grants in cash, securities
or otherwise pursuant to, or the funding of employment arrangements, stock options and stock
ownership plans and other reasonable fees, compensation, benefits and indemnities paid or
entered into by the Company or any of its Restricted Subsidiaries in the ordinary course of
business to or with officers, directors or employees of the Company and its Restricted
Subsidiaries; and

     (vii) any pledge of any Government Operating Agreement to secure Non-Recourse Project
Financing Indebtedness related to the facility that is the subject of such Government
Operating Agreement.

Section 4.12 Liens.

          The Company shall not and shall not permit any of its Restricted Subsidiaries to, create,
incur, assume or otherwise cause or suffer to exist or become effective any Lien of any kind (other
than Permitted Liens) upon any of their property or assets, now owned or hereafter acquired, unless
all payments due under this Indenture and the Notes are secured on an equal and ratable or prior
basis with the Obligations so secured until such time as such Obligations are no longer secured by
a Lien.

Section 4.13 Business Activities.

          The Company shall not, and shall not permit any Restricted Subsidiary to, engage in any
business other than Permitted Businesses, except to such extent as would not be material to the
Company and its Restricted Subsidiaries takes as a whole.

Section 4.14 Offer to Repurchase upon a Change of Control.

          (a) Upon the occurrence of a Change of Control, each Holder of Notes shall have the right to
require the Company to repurchase all or any part (equal to $2,000 or an integral multiple of
$1,000 in excess thereof) of such Holder’s Notes pursuant to the offer described below (the “Change
of Control Offer”) at an offer price in cash equal to 101% of the aggregate principal amount
thereof plus accrued and unpaid interest and Liquidated Damages thereon, if any, to the date of
purchase (the “Change of Control Payment”). Within 30 days following any Change of Control, the
Company shall mail a notice to each Holder describing the transaction or transactions that
constitute the Change of Control and offering to repurchase Notes on the date (the “Change of
Control Payment Date”) specified in the notice, which date will be

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no earlier than 30 days and no later than 60 days from the date such notice is mailed,
pursuant to the procedures described in Section 3.08 and described in such notice. The Company
shall comply with the requirements of Rule 14e-1 under the Exchange Act and any other securities
laws and regulations thereunder to the extent those laws and regulations are applicable in
connection with the repurchase of the Notes as a result of a Change of Control. To the extent that
the provisions of any securities laws or regulations conflict with the provisions of this Indenture
relating to such Change of Control Offer, the Company shall comply with the applicable securities
laws and regulations and shall be deemed not to have breached its obligations under Section 4.14 by
virtue of such conflict.

          (b) On the Change of Control Payment Date, the Company shall, to the extent lawful, (1) accept
for payment all Notes or portions thereof properly tendered pursuant to the Change of Control
Offer, (2) deposit with the Paying Agent an amount equal to the Change of Control Payment in
respect of all Notes or portions thereof so properly tendered and (3) deliver or cause to be
delivered to the Trustee the Notes properly accepted together with an Officers’ Certificate stating
the aggregate principal amount of Notes or portions thereof being purchased by the Company. The
Paying Agent shall promptly deliver to each Holder of Notes properly tendered the Change of Control
Payment for such Notes, and the Trustee shall promptly authenticate and mail (or cause to be
transferred by book entry) to each Holder a new Note equal in principal amount to any unpurchased
portion of the Notes surrendered, if any; provided that each such new Note shall be in a principal
amount of $2,000 or an integral multiple of $1,000 in excess thereof. The Company shall publicly
announce the results of the Change of Control Offer on or as soon as practicable after the Change
of Control Payment Date.

          (c) Notwithstanding anything to the contrary in this Section 4.14, the Company shall not be
required to make a Change of Control Offer upon a Change of Control if a third party makes the
Change of Control Offer in the manner, at the times and otherwise in compliance with the
requirements set forth in this Section 4.14 and all other provisions of this Indenture applicable
to a Change of Control Offer made by the Company and purchases all Notes properly tendered and not
withdrawn under such Change of Control Offer.

Section 4.15 Designation of Restricted and Unrestricted Subsidiaries.

          The Board of Directors of the Company may designate any Restricted Subsidiary to be an
Unrestricted Subsidiary if that designation would not cause a Default or Event of Default. If a
Restricted Subsidiary is designated as an Unrestricted Subsidiary, the aggregate fair market value
of all outstanding Investments owned by the Company and its Restricted Subsidiaries in the
Subsidiary properly designated shall be deemed to be Investments made as of the time of the
designation, subject to the limitations on Restricted Payments. That designation will only be
permitted if the Investment would be permitted at that time and if the Restricted Subsidiary
otherwise meets the definition of an Unrestricted Subsidiary. The Board of Directors of the Company
may redesignate any Unrestricted Subsidiary to be a Restricted Subsidiary if the redesignation
would not cause a Default; provided that such designation shall be deemed to be an incurrence of
Indebtedness by a Restricted Subsidiary of the Company of any outstanding Indebtedness of such
Unrestricted Subsidiary and such designation shall only be permitted if (1) such Indebtedness is
permitted under Section 4.09, calculated on a pro forma basis as if such

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designation had occurred at the beginning of the four-quarter reference period; and (2) no
Default or Event of Default would be in existence following such designation.

Section 4.16 Payments for Consent.

          The Company shall not and shall not permit any of its Restricted Subsidiaries to, directly or
indirectly, pay or cause to be paid any consideration to or for the benefit of any Holder of Notes
for or as an inducement to any consent, waiver or amendment of any of the terms or provisions of
this Indenture or the Notes unless such consideration is offered to be paid and is paid to all
Holders of the Notes that consent, waive or agree to amend in the time frame set forth in the
solicitation documents relating to such consent, waiver or agreement.

Section 4.17 Sale and Leaseback Transactions.

          The Company shall not, and shall not permit any Restricted Subsidiary to, enter into any Sale
and Leaseback Transaction; provided that the Company or any Restricted Subsidiary may enter into a
Sale and Leaseback Transaction if:

     (i) the Company or that Restricted Subsidiary, as applicable, could have (a) incurred
Indebtedness in an amount equal to the Attributable Debt relating to such Sale and Leaseback
Transaction under the Fixed Charge Coverage Ratio test in Section 4.09(a) hereof and (b)
incurred a Lien to secure such Indebtedness pursuant to Section 4.12;

     (ii) the gross cash proceeds of that Sale and Leaseback Transaction are at least equal
to the fair market value, as determined in good faith by the Board of Directors of the
Company and set forth in an Officers’ Certificate delivered to the Trustee, of the property
that is the subject of that Sale and Leaseback Transaction; and

     (iii) the transfer of assets in that Sale and Leaseback Transaction is permitted by,
and the Company applies the proceeds of such transaction in compliance with Section 4.10
hereof.

Section 4.18 Additional Note Guarantees.

          (a) The Notes shall initially be fully and unconditionally guaranteed by each of the Initial
Guarantors and may be guaranteed by additional Subsidiaries of the Company pursuant to this Section
4.18.

          (b) The Company shall not permit any of its Restricted Subsidiaries which are not Guarantors
directly or indirectly, to Guarantee the payment of

     (i) any Indebtedness of the Company or any Guarantor under any Credit Facility or

     (ii) any Indebtedness of the Company or any Guarantor evidenced by bonds, notes or
other debt securities in an aggregate principal amount of $100 million or more, unless, in
each case, such Restricted Subsidiary simultaneously executes and delivers a

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supplemental indenture, in the form of Exhibit E attached hereto, providing for the
Guarantee of the payment of the Notes by such Restricted Subsidiary, which Guarantee shall
be senior to or pari passu with such Subsidiary’s Guarantee of such other Indebtedness.

Section 4.19 Changes in Covenants When Notes Rated Investment Grade.

     (a) If on any date following the date hereof:

     (i) the Notes are rated Baa3 or better by Moody’s or BBB- or better by Standard &
Poor’s (or, if either such entity ceases to rate the Notes for reasons outside of the
control of the Company, the equivalent investment grade credit rating from any other
“nationally recognized statistical rating organization” within the meaning of Section
3(a)(62) under the Exchange Act, selected by the Company as a replacement agency); and

     (ii) no Default or Event of Default shall have occurred and be continuing
(collectively, a “Covenant Suspension Event”);

then, beginning on that day and subject to the provisions of Section 4.19(b), the following
sections shall be suspended:

	 	(1)	 	Section 4.10;
	 
	 	(2)	 	Section 4.07;
	 
	 	(3)	 	Section 4.09;
	 
	 	(4)	 	Section 4.08;
	 
	 	(5)	 	Section 4.15;
	 
	 	(6)	 	Section 4.11;
	 
	 	(7)	 	clause (iv) of Section 5.01(a);
	 
	 	(8)	 	clauses (i)(a) and (iii) of Section 4.17; and
	 
	 	(9)	 	Section 4.13.

          (b) During any period that the foregoing covenants have been suspended (a “Suspension
Period”), the Company’s Board of Directors may not designate any of its Subsidiaries as
Unrestricted Subsidiaries pursuant to Section 4.15 hereof unless such designation would have been
permitted if a Suspension Period had not been in effect at such time.

          (c) Notwithstanding the provisions of Section 4.19(a) above, if the rating assigned by such
rating agency should subsequently decline and the Notes are not rated Baa3 or better by Moody’s nor
BBB- or better by Standard & Poor’s (or if either such agency ceases to rate the Notes, the
equivalent investment grade credit rating from another nationally recognized

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statistical rating organization), the foregoing covenants will be reinstated as of and from
the date of such rating decline. Calculations under the reinstated Section 4.07 will be made as if
Section 4.07 had been in effect since the date hereof except that no default will be deemed to have
occurred solely by reason of a Restricted Payment made while that covenant was suspended.
Notwithstanding that the suspended covenants may be reinstated, no default will be deemed to have
occurred as a result of a failure to comply with such suspended covenants during any period such
covenants have been suspended.

          (d) The Company shall give prompt written notice of any Covenant Suspension Event and the
termination of any Covenant Suspension Event to the Trustee.

Section 4.20 Liquidated Damages Notice

          (a) In the event that the Company is required to pay Liquidated Damages to holders of Notes
pursuant to the Registration Rights Agreement, the Company will provide written notice (the
“Liquidated Damages Notice”) to the Trustee of its obligation to pay Liquidated Damages no later
than fifteen days prior to the proposed payment date for the Liquidated Damages, and the Liquidated
Damages Notice shall set forth the amount of Liquidated Damages to be paid by the Company on such
payment date. The Trustee shall not at any time be under any duty or responsibility to any holder
of Notes to determine the Liquidated Damages, or with respect to the nature, extent, or calculation
of the amount of Liquidated Damages owed, or with respect to the method employed in such
calculation of the Liquidated Damages.

ARTICLE FIVE

SUCCESSORS

Section 5.01 Merger, Consolidation or Sale of Assets.

          (a) The Company shall not, in a single transaction or a series of related transactions,
consolidate with or merge with or into any other Person or sell, assign, convey, transfer, lease or
otherwise dispose of all or substantially all of its properties and assets to any Person or group
of affiliated Persons, or permit any of its Restricted Subsidiaries to enter into any such
transaction or transactions if such transaction or transactions, in the aggregate, would result in
an assignment, conveyance, transfer, lease or disposition of all or substantially all of the
properties and assets of the Company and its Restricted Subsidiaries taken as a whole to any other
Person or group of affiliated Persons, unless at the time and after giving effect thereto:

     (i) either: (A) the Company is the surviving corporation; or (B) the Person formed by
or surviving any such consolidation or merger (if other than the Company) or to which such
sale, assignment, lease, transfer, conveyance or other disposition has been made is a
corporation organized or existing under the laws of the United States, any state of the
United States or the District of Columbia;

     (ii) the Person formed by or surviving any such consolidation or merger (if other than
the Company) or the Person to which such sale, assignment, lease, transfer, conveyance or
other disposition has been made assumes all the obligations of the

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Company under the Notes, this Indenture and the Registration Rights Agreement pursuant
to agreements reasonably satisfactory to the Trustee;

     (iii) no Default or Event of Default exists;

     (iv) the Company or the other Person formed by or surviving any such consolidation or
merger (if other than the Company), or to which such sale, assignment, lease, transfer,
conveyance or other disposition has been made will, on the date of such transaction after
giving pro forma effect thereto and any related financing transactions as if the same had
occurred at the beginning of the applicable four-quarter period, be permitted to incur at
least $1.00 of additional Indebtedness pursuant to the Fixed Charge Coverage Ratio test set
forth in Section 4.09(a) hereof; and

     (v) the Company or the other Person formed by or surviving any such consolidation or
merger (if other than the Company), or to which such sale, assignment, lease, transfer,
conveyance or other disposition has been made will have delivered to the Trustee, in form
and substance reasonably satisfactory to the Trustee, an Officers’ Certificate and an
Opinion of Counsel, each stating that such consolidation, merger, sale, assignment, lease,
conveyance, transfer, or other disposition, and if a supplemental indenture is required in
connection with such transaction, such supplemental indenture, comply with the requirements
of this Indenture and that all conditions precedent therein provided for relating to such
transaction have been complied with.

          (b) Clause (iv) of Section 5.01(a) will not apply to: (a) a sale, transfer or other
disposition of assets between or among the Company and any of its Restricted Subsidiaries or (b)
any merger or consolidation of a Restricted Subsidiary into the Company.

Section 5.02 Successor Corporation Substituted. Upon any consolidation or merger, or
any sale, assignment, transfer, conveyance or other disposition of all or substantially all of the
assets of the Company, in accordance with Section 5.01 hereof, the successor corporation formed by
such consolidation or into or with which the Company is merged or to which such sale, assignment,
transfer, conveyance or other disposition is made shall succeed to, and be substituted for (so that
from and after the date of such consolidation, merger, sale, assignment, conveyance or other
disposition, the provisions of this Indenture referring to the “Company” shall refer instead to the
successor corporation and not to the Company) and may exercise all rights and powers of, the
Company under this Indenture with the same effect as if such successor Person had been named as the
company herein.

ARTICLE SIX

DEFAULTS AND REMEDIES

Section 6.01 Events of Default.

     (a) Each of the following is an “Event of Default”:

     (i) default for 30 days in the payment when due of interest on, or Liquidated Damages
with respect to, the Notes;

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     (ii) default in payment when due of the principal of, or premium, if any, on the Notes;

     (iii) failure by the Company or any Restricted Subsidiary, to comply with the
provisions described in Sections 4.10, 4.14 or 5.01 hereof;

     (iv) failure by the Company or any Guarantor for 60 consecutive days after notice to
comply with any of the other agreements in this Indenture;

     (v) default under any mortgage, indenture or instrument under which there may be issued
or by which there may be secured or evidenced any Indebtedness for money borrowed by the
Company or any Restricted Subsidiary (or the payment of which is guaranteed by the Company
or any Restricted Subsidiary) whether such Indebtedness or guarantee now exists, or is
created after the date hereof, if that default:

          (1) is caused by a failure to make any payment when due at the final maturity
of such Indebtedness (a “Payment Default”); or

          (2) results in the acceleration of such Indebtedness prior to its express
maturity,

and, in each case, the principal amount of any such Indebtedness, together with the
principal amount of any other such Indebtedness under which there has been a Payment Default
or the maturity of which has been so accelerated, aggregates $15.0 million or more;

     (vi) failure by the Company or any Restricted Subsidiary to pay final judgments not
covered by insurance aggregating in excess of $15.0 million, which judgments are not paid,
discharged or stayed for a period of 60 days;

     (vii) except as permitted by this Indenture, any Note Guarantee shall be held in any
judicial proceeding to be unenforceable or invalid or shall cease for any reason to be in
full force and effect or any Guarantor, or any Person acting on behalf of any Guarantor,
shall deny or disaffirm its obligations under its Note Guarantee;

     (viii) the Company or any Restricted Subsidiary that is a Significant Subsidiary or any
group of Restricted Subsidiaries that, taken together, would constitute a Significant
Subsidiary, pursuant to or within the meaning of Bankruptcy Law:

     (1) commences a voluntary case,

     (2) consents to the entry of an order for relief against it in an
involuntary case,

     (3) makes a general assignment for the benefit of its creditors, or

     (4) generally is not paying its debts as they become due; and

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

          (1) is for relief against the Company or any Restricted Subsidiary that is a
Significant Subsidiary or any group of Restricted Subsidiaries that, taken together,
would constitute a Significant Subsidiary, in an involuntary case; or

          (2) appoints a custodian of the Company or any Restricted Subsidiary that is a
Significant Subsidiary or any group of Restricted Subsidiaries that, taken together,
would constitute a Significant Subsidiary or for all or substantially all of the
property of the Company or any Restricted Subsidiary that is a Significant
Subsidiary or any group of Restricted Subsidiaries that taken together, would
constitute a Significant Subsidiary, or

          (3) orders the liquidation of the Company or any Restricted Subsidiary that is
a Significant Subsidiary or any group of Restricted Subsidiaries that, taken
together, would constitute a Significant Subsidiary.

Section 6.02 Acceleration.

          (a) In the case of an Event of Default specified in clause (viii) or (ix) of Section 6.01
hereof, with respect to the Company or any Restricted Subsidiary that is a Significant Subsidiary
or any group of Restricted Subsidiaries that, taken together, would constitute a Significant
Subsidiary, all outstanding Notes will become due and payable immediately without further action or
notice. If any other Event of Default occurs and is continuing, the Trustee or the Holders of at
least 25% in principal amount of the then outstanding Notes may declare all the Notes to be due and
payable immediately by notice in writing to the Company specifying the Event of Default.

          (b) In the event of a declaration of acceleration of the Notes because an Event of Default has
occurred and is continuing as a result of the acceleration of any Indebtedness described in clause
(v) of Section 6.01(a) hereof, the declaration of acceleration of the Notes shall be automatically
annulled if the holders of any Indebtedness described in clause (v) of Section 6.01(a) hereof have
rescinded the declaration of acceleration in respect of the Indebtedness within 30 days of the date
of the declaration and if:

     (i) the annulment of the acceleration of Notes would not conflict with any judgment or
decree of a court of competent jurisdiction; and

     (ii) all existing Events of Default, except nonpayment of principal or interest on the
Notes that became due solely because of the acceleration of the Notes, have been cured or
waived.

Section 6.03 Other Remedies.

         (a) If an Event of Default occurs and is continuing, the Trustee may pursue any available
remedy to collect the payment of principal, premium, if any, interest, and

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Liquidated Damages, if any, with respect to, the Notes or to enforce the performance of any
provision of the Notes or this Indenture.

          (b) The Trustee may maintain a proceeding even if it does not possess any of the Notes or does
not produce any of them in the proceeding. A delay or omission by the Trustee or any Holder of a
Note in exercising any right or remedy accruing upon an Event of Default shall not impair the right
or remedy or constitute a waiver of or acquiescence in the Event of Default. All remedies are
cumulative to the extent permitted by law.

Section 6.04 Waiver of Past Defaults.

          Holders of a majority in principal amount of the then outstanding Notes by notice to the
Trustee, may on behalf of the Holders of all of the Notes, waive any existing Default or Event of
Default and its consequences hereunder, except a continuing Default or Event of Default in the
payment of interest or Liquidated Damages, if any, on, or the principal of, the Notes (including in
connection with an offer to purchase) (provided, however, that the Holders of a majority in
principal amount of the then outstanding Notes may rescind an acceleration and its consequences,
including any related payment default that resulted from such acceleration). The Company shall
deliver to the Trustee an Officers’ Certificate stating that the requisite percentage of Holders
have consented to such waiver and attaching copies of such consents. In case of any such waiver,
the Company, the Trustee and the Holders shall be restored to their former positions and rights
hereunder and under the Notes, respectively. This Section 6.04 shall be in lieu of Section
316(a)(1)(B) of the TIA and such Section 316(a)(1)(B) of the TIA is hereby expressly excluded from
this Indenture and the Notes, as permitted by the TIA. 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 6.05 Control by Majority.

          Holders of a majority in principal amount of the then outstanding Notes may direct the time,
method and place of conducting any proceeding for exercising any remedy available to the Trustee or
exercising any trust or power conferred on it and the Trustee may take any other action deemed
proper by the Trustee which is not inconsistent with such direction. However, the Trustee may
refuse to follow any direction that conflicts with law or this Indenture that the Trustee
determines may be unduly prejudicial to the rights of other Holders of Notes or that may involve
the Trustee in personal liability. The Trustee may withhold from Holders of the Notes notice of
any continuing Default or Event of Default (except a Default or Event of Default relating to the
payment of principal or interest or Liquidated Damages, if any) if it determines that withholding
notice is in their interest.

Section 6.06 Limitation on Suits.

     (a) A Holder may pursue a remedy with respect to this Indenture, or the Notes only if:

     (i) the Holder gives to the Trustee written notice of a continuing Event of Default;

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     (ii) the Holders of at least 25% in principal amount of the then outstanding Notes make
a written request to the Trustee to pursue the remedy;

     (iii) such Holder of a Note or Holders of Notes offer and, if requested, provide to the
Trustee security and indemnity satisfactory to the Trustee against any loss, liability or
expense that might be incurred by it in connection with the request or direction;

     (iv) the Trustee does not comply with the request within 60 days after receipt of the
request and the offer and, if requested, the provision of indemnity; and

     (v) during such 60-day period the Holders of a majority in principal amount of the then
outstanding Notes do not give the Trustee a direction inconsistent with the request.

          (b) A Holder of a Note may not use this Indenture to prejudice the rights of another Holder of
a Note or to obtain a preference or priority over another Holder of a Note (it being understood
that the Trustee does not have an affirmative duty to ascertain whether or not such actions or
forbearances are unduly prejudicial to such Holders).

Section 6.07 Rights of Holders of Notes to Receive Payment.

          Notwithstanding any other provision of this Indenture, the right of any Holder of a Note to
receive payment of principal, premium, if any, interest on, and Liquidated Damages, if any, with
respect to, the Note, on or after the respective due dates expressed in the Note (including in
connection with an offer to purchase), or to bring suit for the enforcement of any such payment on
or after such respective dates, shall not be impaired or affected without the consent of such
Holder.

Section 6.08 Collection Suit by Trustee.

          If an Event of Default specified in Section 6.01(a)(i) or (a)(ii) occurs and is continuing,
the Trustee is authorized to recover judgment in its own name and as Trustee of an express trust
against the Company for the whole amount of principal of, premium, if any, interest, and Liquidated
Damages, if any, remaining unpaid on the Notes and interest on overdue principal and premium, if
any, and, to the extent lawful, interest and Liquidated Damages, if any, and 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.

Section 6.09 Trustee May File Proofs of Claim.

          The Trustee is authorized to file such proofs of claim and other papers or documents as may be
necessary or advisable in order to have the claims of the Trustee (including any claim for the
reasonable compensation, expenses, disbursements and advances of the Trustee, its agents and
counsel) and the Holders of the Notes allowed in any judicial proceedings relative to the Company
or any Guarantor (or any other obligor upon the Notes), its creditors or its property and shall be
entitled and empowered to collect, receive and distribute any money or other securities or property
payable or deliverable on any such claims and any custodian in any

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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 to 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 7.07 hereof. To the extent that the payment of any such compensation,
expenses, disbursements and advances of the Trustee, its agents and counsel, and any other amounts
due the Trustee under Section 7.07 hereof out of the estate in any such proceeding, shall be denied
for any reason, payment of the same shall be secured by a Lien on, and shall be paid out of, any
and all distributions, dividends, money, securities and other properties that the Holders may be
entitled to receive in such proceeding whether in liquidation or under any plan of reorganization
or arrangement or otherwise. Nothing herein contained shall be deemed to authorize the Trustee to
authorize or consent to or accept or adopt on behalf of any Holder any plan of reorganization,
arrangement, adjustment or composition affecting the Notes or the rights of any Holder, or to
authorize the Trustee to vote in respect of the claim of any Holder in any such proceeding.

Section 6.10 Priorities.

          (a) If the Trustee collects any money pursuant to this Article, it shall pay out the money in
the following order:

     First: to the Trustee, its agents and attorneys for amounts due under Section 7.07
hereof, including payment of all compensation, expense and liabilities incurred, and all
advances made, by the Trustee and the costs and expenses of collection;

     Second: to Holders of Notes for amounts due and unpaid on the Notes for principal,
premium, if any, interest and Liquidated Damages, if any, ratably, without preference or
priority of any kind, according to the amounts due and payable on the Notes for principal,
premium, if any, interest, and Liquidated Damages, if any, respectively; and

     Third: to the Company or to such party as a court of competent jurisdiction shall
direct.

          (b) The Trustee may fix a record date and payment date for any payment to Holders of Notes
pursuant to this Section 6.10.

Section 6.11 Undertaking for Costs.

          In any suit for the enforcement of any right or remedy under this Indenture or in any suit
against the Trustee for any action taken or omitted by it as a Trustee, a court in its discretion
may require the filing by any party litigant in the suit of an undertaking to pay the costs of the
suit, and the court in its discretion may assess reasonable costs, including reasonable attorneys’
fees and expenses, against any party litigant in the suit, having due regard to the merits and good
faith of the claims or defenses made by the party litigant. This Section does not apply to a suit
by the Trustee, a suit by a Holder of a Note pursuant to Section 6.07 hereof, or a suit by Holders
of more than ten percent in principal amount of the then outstanding Notes.

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ARTICLE SEVEN

TRUSTEE

Section 7.01 Duties of Trustee.

          (a) If an Event of Default has occurred and is continuing, the Trustee shall exercise such of
the rights and powers vested in it by this Indenture, and use the same degree of care and skill in
its exercise, as a prudent person would exercise or use under the circumstances in the conduct of
such person’s own affairs.

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

     (i) the duties of the Trustee shall be determined solely by the express provisions of
this Indenture and 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; and

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

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

     (i) this paragraph does not limit the effect of paragraph (b) of this Section;

     (ii) 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; and

     (iii) the Trustee shall not be liable with respect to any action it takes or omits to
take in good faith in accordance with a direction received by it pursuant to Section 6.05
hereof.

          (d) Whether or not therein expressly so provided, every provision of this Indenture that in
any way relates to the Trustee is subject to paragraphs (a), (b) and (c) of this Section 7.01.

          (e) No provision of this Indenture shall require the Trustee to expend or risk its own funds
or incur any liability. The Trustee shall be under no obligation to exercise any of its rights and
powers under this Indenture at the request of any Holders, unless such Holder shall have offered to
the Trustee security and indemnity satisfactory to it against any loss, costs, liability or expense
that might be incurred by it in connection with the request or direction.

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          (f) Money held in trust by the Trustee need not be segregated from other funds except to the
extent required by law.

Section 7.02 Certain Rights of Trustee.

          (a) The Trustee may conclusively rely upon any document believed by it to be genuine and to
have been signed or presented by the proper Person. The Trustee need not investigate any fact or
matter stated in the document.

          (b) Before the Trustee acts or refrains from acting, it may require an Officers’ Certificate
or an Opinion of Counsel or both. The Trustee shall not be liable for any action it takes or omits
to take in good faith in reliance on such Officers’ Certificate or Opinion of Counsel. The Trustee
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 from liability in respect of any action
taken, suffered or omitted by it hereunder in good faith and in reliance thereon.

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

          (d) The Trustee shall not be liable for any action it takes or omits to take in good faith
that it believes to be authorized or within the rights or powers conferred upon it by this
Indenture.

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

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

          (g) The Trustee shall not be deemed to have notice of any Default or Event of Default unless a
Responsible Officer of the Trustee has actual knowledge thereof or unless written notice of such
event is sent to the Trustee in accordance with Section 12.02 hereof, and such notice references
the Notes.

          (h) The rights, privileges, protections, immunities and benefits given to the Trustee,
including, without limitation, its right to be indemnified, are extended to, and shall be
enforceable by, the Trustee in each of its capacities hereunder, and to each officer, director and
employee of the Trustee.

          (i) The Trustee 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 Indenture, 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.

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          (j) In no event shall the Trustee be responsible or liable for special, indirect, punitive or
consequential loss or damage of any kind whatsoever (including, but not limited to, loss of profit)
irrespective of whether the Trustee has been advised of the likelihood of such loss or damage and
regardless of the form of action.

          (k) The Trustee shall not be required to give any bond or surety in respect of the performance
of its powers and duties hereunder.

Section 7.03 Individual Rights of Trustee.

          The Trustee in its individual or any other capacity may become the owner or pledgee of Notes
and may become a creditor of, or otherwise deal with, the Company or any of its Affiliates with the
same rights it would have if it were not Trustee. However, in the event that the Trustee acquires
any conflicting interest as described in the Trust Indenture Act of 1939, it must eliminate such
conflict within 90 days, apply to the SEC for permission to continue as trustee or resign. Any
Agent may do the same with like rights and duties. The Trustee is also subject to Sections 7.10
and 7.11 hereof.

Section 7.04 Trustee’s Disclaimer.

          The Trustee shall not be responsible for and makes no representation as to the validity or
adequacy of this Indenture, it shall not be accountable for the Company’s use of the proceeds from
the Notes or any money paid to the Company or upon the Company’s direction under any provision of
this Indenture, it shall not be responsible for the use or application of any money received by any
Paying Agent other than the Trustee, and it shall not be responsible for any statement or recital
herein or any statement in the Notes or any other document in connection with the sale of the Notes
or pursuant to this Indenture other than its certificate of authentication.

Section 7.05 Notice of Defaults.

          If a Default or Event of Default occurs and is continuing and if it is known to the Trustee,
the Trustee shall mail to Holders of Notes a notice of the Default or Event of Default within
90 days after it occurs. Except in the case of a Default or Event of Default in payment of
principal of, premium and Liquidated Damages, if any, or interest on any Note, the Trustee may
withhold the notice if and so long as a committee of its Responsible Officers in good faith
determines that withholding the notice is in the interests of the Holders of the Notes.

Section 7.06 Reports by Trustee to Holders of the Notes.

          (a) Within 60 days after each May 1 beginning with the May 1 following the date hereof, and
for so long as Notes remain outstanding, the Trustee shall mail to the Holders of the Notes a brief
report dated as of such reporting date that complies with TIA § 313(a) (but if no event described
in TIA § 313(a) has occurred within the twelve months preceding the reporting date, no report need
be transmitted). The Trustee also shall comply with TIA § 313(b)(2). The Trustee shall also
transmit by mail all reports as required by TIA § 313(c).

          (b) A copy of each report at the time of its mailing to the Holders of Notes shall be mailed
to the Company and filed with the SEC and each stock exchange on which the

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Notes are listed in accordance with TIA § 313(d). The Company shall promptly notify the Trustee in writing when the
Notes are listed on any stock exchange or any delisting thereof.

Section 7.07 Compensation and Indemnity.

          (a) The Company shall pay to the Trustee from time to time such compensation as shall be
agreed in writing between the Company and the Trustee for its acceptance of this Indenture and
services hereunder. 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 promptly upon request for
all reasonable disbursements, advances and expenses incurred or made by it in addition to the
compensation for its services. Such expenses shall include the reasonable compensation,
disbursements and expenses of the Trustee’s agents and counsel.

          (b) The Company shall indemnify each of the Trustee and any predecessor Trustee against any
and all losses, liabilities, damages, claims or expenses incurred by it arising out of or in
connection with the acceptance or administration of its duties under this Indenture, including the
reasonable costs and expenses of enforcing this Indenture against the Company (including this
Section 7.07) and defending itself against any claim (whether asserted by either of the Company or
any Guarantor or any Holder or any other person) or liability in connection with the exercise or
performance of any of its powers or duties hereunder, except to the extent any such loss,
liability, damage, claim or expense may be attributable to its negligence or willful misconduct.
The Trustee shall notify the Company promptly of any claim for which it may seek indemnity.
Failure by the Trustee to so notify the Company shall not relieve the Company of its obligations
hereunder. The Company shall defend the claim and the Trustee shall cooperate in the defense. The
Trustee may have separate counsel and the Company shall pay the reasonable fees and expenses of
such counsel. The Company need not pay for any settlement made without its consent, which consent
shall not be unreasonably withheld.

          (c) The obligations of the Company under this Section 7.07 shall survive the satisfaction and
discharge of this Indenture and resignation of removal of the Trustee.

          (d) To secure the Company’s payment obligations in this Section, the Trustee shall have a Lien
prior to the Notes on all money or property held or collected by the Trustee, except that held in
trust to pay principal and interest on particular Notes. Such Lien shall survive the satisfaction
and discharge of this Indenture and resignation or removal of the Trustee.

          (e) When the Trustee incurs expenses or renders services after an Event of Default specified
in Section 6.01(a)(viii) and (ix) hereof occurs, the expenses and the compensation for the services
(including the fees and expenses of its agents and counsel) are intended to constitute expenses of
administration under any Bankruptcy Law.

          (f) The Trustee shall comply with the provisions of TIA § 313(b)(2) to the extent applicable.

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Section 7.08 Replacement of Trustee.

          (a) A resignation or removal of the Trustee and appointment of a successor Trustee shall
become effective only upon the successor Trustee’s acceptance of appointment as provided in this
Section 7.08.

          (b) The Trustee may resign in writing at any time and be discharged from the trust hereby
created by so notifying the Company. The Holders of a majority in principal amount of the then
outstanding Notes may remove the Trustee by so notifying the Trustee and the Company in writing.
The Company may remove the Trustee if:

     (i) the Trustee fails to comply with Section 7.10 hereof;

     (ii) the Trustee is adjudged a bankrupt or an insolvent or an order for relief is
entered with respect to the Trustee under any Bankruptcy Law;

     (iii) a custodian or public officer takes charge of the Trustee or its property; or

     (iv) the Trustee becomes incapable of acting.

          (c) If the Trustee resigns or is removed or if a vacancy exists in the office of Trustee for
any reason, the Company shall promptly appoint a successor Trustee. Within one year after the
successor Trustee takes office, the Holders of a majority in principal amount of the then
outstanding Notes may appoint a successor Trustee to replace the successor Trustee appointed by the
Company.

          (d) If a successor Trustee does not take office within 30 days after the retiring Trustee
resigns or is removed, the retiring Trustee, the Company, or the Holders of Notes of at least 10%
in principal amount of the then outstanding Notes may petition at the expense of the Company any
court of competent jurisdiction for the appointment of a successor Trustee.

          (e) If the Trustee, after written request by any Holder who has been a Holder for at least six
months, fails to comply with Section 7.10, such Holder may petition any court of competent
jurisdiction for the removal of the Trustee and the appointment of a successor Trustee.

          (f) A successor Trustee shall deliver a written acceptance of its appointment to the retiring
Trustee and to the Company. Thereupon, the resignation or removal of the retiring Trustee shall
become effective, and the successor Trustee shall have all the rights, powers and duties of the
Trustee under this Indenture. The successor Trustee shall mail a notice of its succession to
Holders. The retiring Trustee shall promptly transfer all property held by it as Trustee to the
successor Trustee, provided all sums owing to the Trustee hereunder have been paid and subject to
the Lien provided for in Section 7.07 hereof. Notwithstanding replacement of the Trustee pursuant
to this Section 7.08 or Section 7.09, the Company’s obligations under Section 7.07 hereof shall
continue for the benefit of the retiring Trustee.

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Section 7.09 Successor Trustee by Merger, Etc.

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

Section 7.10 Eligibility; Disqualification.

          There shall at all times be a Trustee hereunder that is a corporation organized and doing
business under the laws of the United States of America or of any state thereof that is authorized
under such laws to exercise corporate trustee power, that is subject to supervision or examination
by federal or state authorities and that has a combined capital and surplus of at least $100.0
million as set forth in its most recent published annual report of condition.

          This Indenture shall always have a Trustee who satisfies the requirements of TIA § 310(a)(1),
(2) and (5). The Trustee is subject to TIA § 310(b).

Section 7.11 Preferential Collection of Claims Against Company.

          The Trustee is subject to TIA § 311(a), excluding any creditor relationship listed in TIA §
311(b). A Trustee who has resigned or been removed shall be subject to TIA § 311(a) to the extent
indicated therein. The Trustee hereby waives any right to set-off any claim that it may have
against the Company in any capacity (other than as Trustee and Paying Agent) against any of the
assets of the Company held by the Trustee; provided, however, that if the Trustee is or becomes a
lender of any other Indebtedness permitted hereunder to be pari
passu with the Notes, then such
waiver shall not apply to the extent of such Indebtedness.

Section 7.12 Trustee’s Application for Instructions from the Company.

          Any application by the Trustee for written instructions from the Company may, at the option of
the Trustee, set forth in writing any action proposed to be taken or omitted by the Trustee under
this Indenture and the date on and/or after which such action shall be taken or such omission shall
be effective. The Trustee shall not be liable for any action taken by, or omission of, the Trustee
in accordance with a proposal included in such application on or after the date specified in such
application (which date shall not be less than five (5) Business Days after the date any Officer of
the Company actually receives such application, unless any such Officer shall have consented in
writing to any earlier date) unless prior to taking any such action (or the effective date in the
case of an omission), the Trustee shall have received written instructions in response to such
application specifying the action to be taken or omitted.

ARTICLE EIGHT

DEFEASANCE AND COVENANT DEFEASANCE

Section 8.01 Option to Effect Legal Defeasance or Covenant Defeasance.

          The Company may, at the option of the Board of Directors evidenced by a resolution set forth
in an Officers’ Certificate, at any time, elect to have either Section 8.02 or

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8.03 hereof be applied to all outstanding Notes upon compliance with the conditions set forth below in this
Article Eight.

Section 8.02 Legal Defeasance and Discharge.

          Upon the Company’s exercise under Section 8.01 hereof of the option applicable to this
Section 8.02, the Company shall, subject to the satisfaction of the conditions set forth in
Section 8.04 hereof, be deemed to have been discharged from its obligations with respect to all
outstanding Notes and all obligations of the Guarantors shall be deemed to have been discharged
with respect to their obligations under the Note Guarantees on the date the conditions set forth
below are satisfied (hereinafter, “Legal Defeasance”). For this purpose, Legal Defeasance means
that the Company and the Guarantors shall be deemed to have paid and discharged the entire
Indebtedness represented by the outstanding Notes and Guarantees, respectively, which shall
thereafter be deemed to be “outstanding” only for the purposes of Section 8.05 hereof and the other
Sections of this Indenture referred to in (a) and (b) below, and to have satisfied all its other
obligations under such Notes and this Indenture (and the Trustee, on reasonable demand of and at
the expense of the Company, shall execute proper instruments acknowledging the same), except for
the following provisions which shall survive until otherwise terminated or discharged hereunder:
(a) the rights of Holders of outstanding Notes to receive solely from the trust fund described in
Section 8.04 hereof, and as more fully set forth in such Section, payments in respect of the
principal of, premium, if any, interest and Liquidated Damages, if any, on such Notes when such
payments are due, (b) the Company’s obligations with respect to such Notes under Article 2
concerning issuing temporary Notes, registration of Notes and mutilated, destroyed, lost or stolen
Notes and Company’s obligations under Section 4.02 hereof, (c) the rights, powers, trusts, duties
and immunities of the Trustee hereunder and the Company’s obligations in connection therewith and
(d) this Article Eight. Subject to compliance with this Article Eight, the Company may exercise
its option under this Section 8.02 notwithstanding the prior exercise of its option under
Section 8.03 hereof.

Section 8.03 Covenant Defeasance.

          Upon the Company’s exercise under Section 8.01 hereof of the option applicable to this
Section 8.03, the Company shall, subject to the satisfaction of the conditions set forth in
Section 8.04 hereof, be released from its obligations under the covenants contained in
Sections 4.07, 4.08, 4.09, 4.10, 4.11, 4.12, 4.13, 4.14, 4.15, 4.16, 4.17, 4.18 and 4.19 hereof and
clause (iv) of Section 5.01(a) hereof with respect to the outstanding Notes on and after the date
the conditions set forth in Section 8.04 are satisfied
(hereinafter, “Covenant Defeasance”), and
the Notes shall thereafter be deemed not “outstanding” for the purposes of any direction, waiver,
consent or declaration or act of Holders (and the consequences of any thereof) in connection with
such covenants, but shall continue to be deemed “outstanding” for all other purposes hereunder (it
being understood that such Notes shall not be deemed outstanding for accounting purposes). For
this purpose, Covenant Defeasance means that, with respect to the outstanding Notes, the Company
may omit to comply with and shall have no liability in respect of any term, condition or limitation
set forth in any such covenant, whether directly or indirectly, by reason of any reference
elsewhere herein to any such covenant or by reason of any reference in any such covenant to any
other provision herein or in any other document and such omission to comply shall not constitute a
Default or an Event of Default under Section 6.01 hereof, but, except as

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specified above, the remainder of this Indenture and such Notes shall be unaffected thereby. In addition, upon the
Company’s exercise under Section 8.01 hereof of the option applicable to this Section 8.03, subject
to the satisfaction of the conditions set forth in Section 8.04 hereof, Sections 6.01(a)(iii)
through (vii) shall not constitute Events of Default.

Section 8.04 Conditions to Legal or Covenant Defeasance.

          (a) The following shall be the conditions to the application of either Section 8.02 or 8.03
hereof to the outstanding Notes:

     (i) the Company must irrevocably deposit with the Trustee, in trust, for the benefit of
the Holders of the Notes, cash in U.S. dollars, non-callable Government Securities, or a
combination of cash in U.S. dollars and non-callable Government Securities, in amounts as
will be sufficient, in the opinion of a nationally recognized firm of independent public
accountants, to pay the principal of, or interest and premium and Liquidated Damages, if
any, on the outstanding Notes on the Stated Maturity or on the applicable redemption date,
as the case may be, and the Company must specify whether the Notes are being defeased to
maturity or to a particular redemption date and, if the Notes are being defeased to a
particular redemption date, the Company must have delivered to the Trustee an irrevocable
notice of redemption;

     (ii) in the case of Legal Defeasance, the Company shall have delivered to the Trustee
an Opinion of Counsel reasonably acceptable to the Trustee confirming that (a) the Company
has received from, or there has been published by, the Internal Revenue Service a ruling or
(b) since the date hereof, there has been a change in the applicable federal income tax law,
in either case to the effect that, and based thereon such Opinion of Counsel will confirm
that, the Holders of the outstanding Notes will not recognize income, gain or loss for
federal income tax purposes as a result of such Legal Defeasance and will be subject to
federal income tax on the same amounts, in the same manner and at the same times as would
have been the case if such Legal Defeasance had not occurred;

     (iii) in the case of Covenant Defeasance, the Company shall have delivered to the
Trustee an Opinion of Counsel reasonably acceptable to the Trustee confirming that the
Holders of the outstanding Notes will not recognize income, gain or loss for federal income
tax purposes as a result of such Covenant Defeasance and will be subject to federal income
tax on the same amounts, in the same manner and at the same times as would have been the
case if such Covenant Defeasance had not occurred;

     (iv) no Default or Event of Default has occurred and is continuing either (a) on the
date of such deposit or (b) insofar as Events of Default from bankruptcy or insolvency
events are concerned, at any time in the period ending on the 123rd day after the date of
deposit;

     (v) such Legal Defeasance or Covenant Defeasance will not result in a breach or
violation of, or constitute a default under, any material agreement or instrument (other
than this Indenture) to which the Company or any of its Subsidiaries is a party or by which
the Company or any of its Subsidiaries is bound;

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     (vi) the Company must have delivered to the Trustee an Officers’ Certificate stating
that the deposit was not made by the Company with the intent of preferring the Holders of
Notes over the other creditors of the Company or with the intent of defeating, hindering,
delaying or defrauding creditors of the Company or others;

     (vii) the Company must have delivered to the Trustee an Opinion of Counsel to the
effect that the creation of the defeasance trust does not violate the Investment Company Act
of 1940 and after the passage of 123 days following the deposit, the trust fund will not be
subject to the effect of Section 547 of the U.S. Bankruptcy Code or Section 15 of the New
York Debtor and Creditor Law; and

     (viii) the Company must deliver to the Trustee an Officers’ Certificate and an Opinion
of Counsel, each stating that all conditions precedent relating to the Legal Defeasance or
the Covenant Defeasance have been complied with.

Section 8.05 Deposited Money and Government Securities to Be Held in Trust; Other
Miscellaneous Provisions.

          (a) Subject to Section 8.06 hereof, all money and non-callable Government Securities
(including the proceeds thereof) deposited with the Trustee pursuant to Section 8.04 hereof in
respect of the outstanding Notes shall be held in trust and applied by the Trustee, in accordance
with the provisions of such Notes and this Indenture, to the payment, either directly or through
any Paying Agent (including the Company acting as Paying Agent) as the Trustee may determine, to
the Holders of such Notes of all sums due and to become due thereon in respect of principal,
premium and Liquidated Damages, if any, and interest, but such money need not be segregated from
other funds except to the extent required by law.

          (b) The Company shall pay and indemnify the Trustee against any tax, fee or other charge
imposed on or assessed against the cash or non-callable Government Securities deposited pursuant to
Section 8.04 hereof 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 the outstanding Notes.

          (c) Anything in this Article Eight to the contrary notwithstanding, the Trustee shall deliver
or pay to the Company from time to time upon the written request of the Company any money or
non-callable Government Securities held by it as provided in Section 8.04 hereof which, in the
opinion of a nationally recognized firm of independent public accountants expressed in a written
certification thereof delivered to the Trustee (which may be the opinion delivered under
Section 8.04(a) hereof), are in excess of the amount thereof that would then be required to be
deposited to effect an equivalent Legal Defeasance or Covenant Defeasance.

Section 8.06 Repayment to the Company.

          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, premium, if any, or interest on any Note and remaining
unclaimed for two years after such principal, and premium, if any, or interest has become due and
payable shall be paid to the Company on its request or (if then held by the Company) shall be
discharged from such trust; and the Holder of such Note shall thereafter look

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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,
shall at the expense of the Company cause to be published once, in the New York Times and The Wall
Street Journal (national edition), notice that such money remains unclaimed and that, after a date
specified therein, which shall not be less than 30 days from the date of such notification or
publication, any unclaimed balance of such money then remaining shall be repaid to the Company.

Section 8.07 Reinstatement.

          If the Trustee or Paying Agent is unable to apply any United States dollars or non-callable
Government Securities in accordance with Section 8.02 or 8.03 hereof, as the case may be, by reason
of any order or judgment of any court or governmental authority enjoining, restraining or otherwise
prohibiting such application, then the Company’s obligations under this Indenture and the Notes
shall be revived and reinstated as though no deposit had occurred pursuant to Section 8.02 or 8.03
hereof until such time as the Trustee or Paying Agent is permitted to apply all such money in
accordance with Section 8.02 or 8.03 hereof, as the case may be;
provided, however, that, if the
Company makes any payment of principal of, premium, if any, or interest on any Note following the
reinstatement of its obligations, the Company shall be subrogated to the rights of the Holders of
such Notes to receive such payment from the money held by the Trustee or Paying Agent.

ARTICLE NINE

AMENDMENT, SUPPLEMENT AND WAIVER

Section 9.01 Without Consent of Holders of Notes.

          (a) Notwithstanding Section 9.02 of this Indenture, the Company, the Guarantors, if any, and
the Trustee may amend or supplement this Indenture or the Notes without the consent of any Holder
of a Note:

     (i) to cure any ambiguity, defect or inconsistency;

     (ii) to provide for uncertificated Notes in addition to or in place of certificated
Notes;

     (iii) to provide for the assumption of the Company’s or any Guarantor’s obligations to
Holders of Notes in the case of a merger or consolidation or sale of all or substantially
all of the Company’s or such Guarantor’s assets;

     (iv) to make any change that would provide any additional rights or benefits to the
Holders of Notes or that does not materially adversely affect the legal rights under this
Indenture of any such Holder;

     (v) to comply with requirements of the SEC in order to effect or maintain the
qualification of this Indenture under the Trust Indenture Act;

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     (vi) to conform the text of this Indenture, the Note Guarantees or the Notes to any
provision of the “Description of Notes” in the Offering Memorandum to the extent such
provision in the “Description of Notes” was intended to be a verbatim recitation of a
provision of this Indenture, the Note Guarantees or the Notes;

     (vii) to provide for the issuance of Additional Notes in accordance with the
limitations described herein; or

     (viii) to allow a Subsidiary to execute a supplemental indenture for the purpose of
providing a Note Guarantee in accordance with the provisions of this Indenture.

          (b) Upon the request of the Company accompanied by a resolution of its Board of Directors
authorizing the execution of any such amended or supplemental indenture, and upon receipt by the
Trustee of the documents described in Section 7.02 hereof, the Trustee shall join with the Company
in the execution of any amended or supplemental indenture authorized or permitted by the terms of
this Indenture and to make any further appropriate agreements and stipulations that may be therein
contained, but the Trustee shall not be obligated to enter into such amended or supplemental
indenture that affects its own rights, duties or immunities under this Indenture or otherwise.

Section 9.02 With Consent of Holders of Notes.

          (a) Except as provided in Section 9.02(e), the Company, the Guarantors, if any, and the
Trustee may amend or supplement this Indenture or the Notes with the consent of the Holders of at
least a majority in principal amount of the Notes (including Additional Notes, if any) then
outstanding (including, without limitation, consents obtained in connection with a purchase of, or
tender offer or exchange offer for, Notes), and, subject to Sections 6.04 and 6.07 hereof, any
existing Default or Event of Default or compliance with any provision of this Indenture or the
Notes may be waived with the consent of the Holders of a majority in principal amount of the then
outstanding Notes (including Additional Notes, if any) (including, without limitation, consents
obtained in connection with a purchase of, or tender offer or exchange offer for, Notes).

          (b) The Company may, but shall not be obligated to, fix a record date for the purpose of
determining the Persons entitled to consent to any indenture supplemental hereto. If a record date
is fixed, the Holders on such record date, or its duly designated proxies, and only such Persons,
shall be entitled to consent to such supplemental indenture, whether or not such Holders remain
Holders after such record date; provided that unless such consent shall have become effective by
virtue of the requisite percentage having been obtained prior to the date which is 90 days after
such record date, any such consent previously given shall automatically and without further action
by any Holder be cancelled and of no further effect.

          (c) Upon the request of the Company accompanied by a resolution of its Board of Directors
authorizing the execution of any such amended or supplemental indenture, and upon the filing with
the Trustee of evidence satisfactory to the Trustee of the consent of the Holders of Notes as
aforesaid, and upon receipt by the Trustee of the documents described in Section 7.02 hereof, the
Trustee shall join with the Company in the execution of such amended

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or supplemental indenture
unless such amended or supplemental indenture directly affects the Trustee’s own rights, duties or
immunities under this Indenture or otherwise, in which case the Trustee may in its discretion, but
shall not be obligated to, enter into such amended or supplemental indenture.

          (d) It shall not be necessary for the consent of the Holders of Notes under this Section 9.02
to approve the particular form of any proposed amendment or waiver, but it shall be sufficient if
such consent approves the substance thereof.

          (e) After an amendment, supplement or waiver under this Section becomes effective, the Company
shall mail to the Holders of Notes affected thereby a notice briefly describing the amendment,
supplement or waiver. Any failure of the Company to mail such notice, or any defect therein, shall
not, however, in any way impair or affect the validity of any such amended or supplemental
indenture or waiver. Subject to Sections 6.04 and 6.07 hereof, the Holders of a majority in
aggregate principal amount of the then outstanding Notes (including Additional Notes, if any) may
waive compliance in a particular instance by the Company with any provision of this Indenture, or
the Notes. However, without the consent of each Holder affected, an amendment or waiver under this
Section 9.02 may not (with respect to any Notes held by a non-consenting Holder):

     (i) reduce the principal amount of Notes whose Holders must consent to an amendment,
supplement or waiver;

     (ii) reduce the principal of or change the fixed maturity of any Note or change the
optional redemption dates or optional redemption prices from those provided in Section 3.07
of this Indenture;

     (iii) reduce the rate of or change the time for payment of interest on any Note;

     (iv) waive a Default or Event of Default in the payment of principal of, or interest or
premium, or Liquidated Damages, if any, on the Notes (except a rescission of acceleration of
the Notes by the Holders of at least a majority in aggregate principal amount of the Notes
and a waiver of the payment default that resulted from such acceleration);

     (v) make any Note payable in money other than U.S. dollars;

     (vi) make any change in the provisions of this Indenture relating to waivers of past
Defaults or the rights of Holders of Notes to receive payments of principal of, or interest
or premium or Liquidated Damages, if any, on the Notes;

     (vii) waive a redemption payment with respect to any Note;

     (viii) release any Guarantor from any of its obligations under its Note Guarantee or
this Indenture, except in accordance with the terms of this Indenture;

     (ix) impair the right to institute suit for the enforcement of any payment on or with
respect to the Notes or the Note Guarantees;

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     (x) amend, change or modify the obligation of the Company to make and consummate an
Asset Sale Offer with respect to any Asset Sale in accordance with Section 4.10 hereof after
the obligation to make an Asset Sale Offer has arisen or the obligation of the Company to
make and consummate a Change of Control Offer in the event of a Change of Control in
accordance with Section 4.14 hereof after a Change of Control has occurred, including, in
each case, amending, changing or modifying any definition relating thereto;

     (xi) make any change in the preceding amendment and waiver provisions.

Section 9.03 Compliance with Trust Indenture Act.

          Every amendment or supplement to this Indenture or the Notes shall be set forth in an amended
or supplemental indenture that complies with the TIA as then in effect.

Section 9.04 Revocation and Effect of Consents.

          Until an amendment, supplement or waiver becomes effective, a consent to it by a Holder of a
Note is a continuing consent by the Holder of a Note and every subsequent Holder of a Note or
portion of a Note that evidences the same debt as the consenting Holder’s Note, even if notation of
the consent is not made on any Note. However, any such Holder of a Note or subsequent Holder of a
Note may revoke the consent as to its Note if the Trustee receives written notice of revocation
before the date the waiver, supplement or amendment becomes effective. An amendment, supplement or
waiver becomes effective in accordance with its terms and thereafter binds every Holder.

Section 9.05 Notation on or Exchange of Notes.

          (a) The Trustee may place an appropriate notation about an amendment, supplement or waiver on
any Note thereafter authenticated. The Company in exchange for all Notes may issue and the Trustee
shall, upon receipt of an Authentication Order, authenticate new Notes that reflect the amendment,
supplement or waiver.

          (b) Failure to make the appropriate notation or issue a new Note shall not affect the validity
and effect of such amendment, supplement or waiver.

Section 9.06 Trustee to Sign Amendments, Etc.

          The Trustee shall sign any amended or supplemental indenture or Note authorized pursuant to
this Article Nine if the amendment or supplement does not adversely affect the rights, duties,
liabilities or immunities of the Trustee. The Company may not sign an amendment or supplemental
indenture or Note until its Board of Directors approves it. In executing any amended or
supplemental indenture or Note, the Trustee shall receive and (subject to Section 7.01 hereof)
shall be fully protected in conclusively relying upon an Officers’ Certificate and an Opinion of
Counsel stating that the execution of such amended or supplemental indenture is authorized or
permitted by this Indenture and that all conditions precedent to such execution have been met.

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ARTICLE TEN

NOTE GUARANTEES

Section 10.01 Guarantee.

          (a) On the Issue Date, all of the Initial Guarantors will Guarantee the obligations of the
Company under the Notes and the Indenture as provided in this Article Ten. On the Issue Date, all
of the Company’s Subsidiaries that Guarantee the Company’s obligations under the Credit Agreement
are the Initial Guarantors hereunder. Subject to this Article Ten, each of the Guarantors
including the Initial Guarantors and any other Subsidiary that may become a Guarantor) hereby,
jointly and severally, and fully and unconditionally, guarantees to each Holder of a Note
authenticated and delivered by the Trustee and to the Trustee and its successors and assigns,
irrespective of the validity and enforceability of this Indenture, the Notes or the obligations of
the Company hereunder or thereunder, that: (a) the principal of, premium, if any, and interest and
Liquidated Damages, if any, on the Notes shall be promptly paid in full when due, whether at Stated
Maturity, by acceleration, redemption or otherwise, and interest on the overdue principal of,
premium, if any, and interest and Liquidated Damages, if any, on the Notes, if lawful (subject in
all cases to any applicable grace period provided herein), and all other obligations of the Company
to the Holders or the Trustee hereunder or thereunder shall be promptly paid in full or performed,
all in accordance with the terms hereof and thereof; and (b) in case of any extension of time of
payment or renewal of any Notes or any of such other obligations, the same shall be promptly paid
in full when due or performed in accordance with the terms of the extension or renewal, whether at
Stated Maturity, by acceleration or otherwise. Failing payment when due of any amount so
guaranteed or any performance so guaranteed for whatever reason, the Guarantors shall be jointly
and severally obligated to pay the same immediately. Each Guarantor agrees that this is a
guarantee of payment and not a guarantee of collection.

          (b) The Guarantors hereby agree that, to the maximum extent permitted under applicable law,
their obligations hereunder shall be unconditional, irrespective of the validity, regularity or
enforceability of the Notes or this Indenture, the absence of any action to enforce the same, any
waiver or consent by any Holder of the Notes with respect to any provisions hereof or thereof, the
recovery of any judgment against the Company, any action to enforce the same or any other
circumstance which might otherwise constitute a legal or equitable discharge or defense of a
Guarantor. Each Guarantor hereby waives diligence, presentment, demand of payment, filing of
claims with a court in the event of insolvency or bankruptcy of the Company, any right to require a
proceeding first against the Company, protest, notice and all demands whatsoever and covenants that
this Note Guarantee shall not be discharged except by complete performance of the obligations
contained in the Notes and this Indenture or except as provided in Section 10.05 of this Indenture.

          (c) If any Holder or the Trustee is required by any court or otherwise to return to the
Company, the Guarantors or any custodian, trustee, liquidator or other similar official acting in
relation to any of the Company or the Guarantors, any amount paid by any of them to the Trustee or
such Holder, this Note Guarantee, to the extent theretofore discharged, shall be reinstated in full
force and effect.

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          (d) Each Guarantor agrees that it shall not be entitled to any right of subrogation in
relation to the Holders in respect of any obligations guaranteed hereby until payment in full of
all obligations guaranteed hereby. Each Guarantor further agrees that, as between the Guarantors,
on the one hand, and the Holders and the Trustee, on the other hand, (x) the maturity of the
obligations guaranteed hereby may be accelerated as provided in, but subject to the provisions of,
Article Six hereof for the purposes of this Note Guarantee, notwithstanding any stay, injunction or
other prohibition preventing such acceleration in respect of the obligations guaranteed hereby, and
(y) in the event of any declaration of acceleration of such obligations as provided in Article Six
hereof, such obligations (whether or not due and payable) shall forthwith become due and payable by
the Guarantors for the purpose of this Note Guarantee. The Guarantors shall have the right to seek
contribution from any non-paying Guarantor so long as the exercise of such right does not impair
the rights of the Holders under the Note Guarantee.

Section 10.02. Limitation on Guarantor Liability.

          Each Guarantor, and by its acceptance of Notes, each Holder, hereby confirms that it is the
intention of all such parties that the Note Guarantee of such Guarantor not constitute a fraudulent
transfer or conveyance for purposes of Bankruptcy Law, the Uniform Fraudulent Conveyance Act, the
Uniform Fraudulent Transfer Act or any similar federal or state law to the extent applicable to
such Note Guarantee. To effectuate the foregoing intention, the Trustee, the Holders and the
Guarantors hereby irrevocably agree that the obligations of such Guarantor shall be limited to the
maximum amount as will, after giving effect to all other contingent and fixed liabilities of such
Guarantor that are relevant under such laws, and after giving effect to any collections from,
rights to receive contribution from or payments made by or on behalf of any other Guarantor in
respect of the obligations of such other Guarantor under this Article Ten, result in the
obligations of such Guarantor under its Note Guarantee not constituting a fraudulent transfer or
conveyance.

Section 10.03. Execution and Delivery of a Supplemental Indenture Relating to a Note
Guarantee.

          (a) Each Guarantor hereby agrees that its Note Guarantee set forth in Section 10.01 shall
remain in full force and effect notwithstanding any failure to endorse on each Note a notation of
such Note Guarantee.

          (b) If an Officer whose signature is on this Indenture or on a supplemental indenture no
longer holds that office at the time the Trustee authenticates the Note, the Note Guarantee shall
be valid nevertheless.

          (c) The delivery of any Note by the Trustee, after the authentication thereof hereunder, shall
constitute due delivery of the Note Guarantee set forth in this Indenture on behalf of the
Guarantors.

          (d) If required by Section 4.18 hereof, the Company shall cause such Subsidiaries to execute
supplemental indentures to this Indenture in accordance with Section 4.18 hereof and this
Article Ten, to the extent applicable.

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Section 10.04. Guarantors May Consolidate, Etc., on Certain Terms.

          (a) A Guarantor may not sell or otherwise dispose of all or substantially all of its assets
to, or consolidate with or merge with or into (whether or not such Guarantor is the surviving
Person), another Person, other than the Company or another Guarantor, unless:

     (i) immediately after giving effect to that transaction, no Default or Event of Default
exists; and

     (ii) either:

     (A) the Person acquiring the property in any such sale or disposition or the
Person formed by or surviving any such consolidation or merger assumes all the
obligations of that Guarantor under this Indenture and its Note Guarantee and the
Registration Rights Agreement pursuant to a supplemental indenture satisfactory to
the Trustee; or

     (B) such sale or other disposition or consolidation or merger complies with
Section 4.10 hereof.

          (b) In case of any such consolidation, merger, sale or conveyance governed by
Section 10.04(a)(ii)(A), upon the assumption by the successor Person, by supplemental indenture,
executed and delivered to the Trustee and reasonably satisfactory in form to the Trustee and the
due and punctual performance of all of the covenants and conditions of this Indenture to be
performed by a Guarantor, such successor Person shall succeed to and be substituted for a Guarantor
with the same effect as if it had been named herein as a Guarantor.

Section 10.05. Release of a Guarantor.

          (a) Any Guarantor shall be released and relieved of any obligations under its Note Guarantee
hereunder, (i) in connection with any sale or other disposition of all of the Capital Stock of
such Guarantor (including by way of merger or consolidation) to a Person that is not (either before
or after giving effect to such transaction) a Restricted Subsidiary of the Company, if the sale of
all such Capital Stock of that Guarantor complies with Section 4.10 hereof; (ii) if the Company
properly designates such Guarantor as an Unrestricted Subsidiary under this Indenture; (iii) upon
Legal Defeasance or Covenant Defeasance or satisfaction and discharge of the Notes as permitted
under this Indenture; or (iv) upon the release or termination (other than a termination or release
resulting from the payment thereon) of such Guarantor’s Guarantee, if any, of (a) all Indebtedness
of the Company or any Guarantor under any Credit Facility and (b) all Indebtedness of the Company
or any Guarantor evidenced by bonds, notes or other debt securities in an aggregate principal
amount of $100 million or more.

          (b) Upon delivery by the Company to the Trustee of an Officers’ Certificate and an Opinion of
Counsel to the effect that one of the foregoing requirements has been satisfied and the conditions
to the release of a Guarantor under this Section 10.05 have been met, the Trustee shall execute any
documents reasonably required in order to evidence the release of such Guarantor from its
obligations under its Note Guarantee.

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          (c) Any Guarantor not released from its obligations under its Note Guarantee shall remain
liable for the full amount of principal of and interest and Liquidated Damage, if any, on the Notes
and for the other obligations of any Guarantor under this Indenture as provided in this
Article Ten.

ARTICLE ELEVEN

SATISFACTION AND DISCHARGE

Section 11.01 Satisfaction and Discharge.

          (a) This Indenture shall be discharged and shall cease to be of further effect as to all Notes
issued thereunder, when:

     (i) either:

          (1) all Notes that have been authenticated (except lost, stolen or destroyed
Notes that have been replaced or paid and Notes for whose payment money has
theretofore been deposited in trust and thereafter repaid to the Company) have been
delivered to the Trustee for cancellation; or

          (2) all Notes that have not been delivered to the Trustee for cancellation have
become due and payable by reason of the making of a notice of redemption or
otherwise or will become due and payable within one year and the Company or any
Guarantor has irrevocably deposited or caused to be deposited with the Trustee as
trust funds in trust solely for the benefit of the Holders, cash in U.S. dollars,
non-callable Government Securities, or a combination thereof, in such amounts as
will be sufficient without consideration of any reinvestment of interest to pay and
discharge the entire indebtedness on the Notes not delivered to the Trustee for
cancellation for principal, premium and Liquidated Damages, if any, and accrued
interest to the date of maturity or redemption;

     (ii) no Default or Event of Default shall have occurred and be continuing on the date
of such deposit or shall occur as a result of such deposit and such deposit will not result
in a breach or violation of, or constitute a default under, any other instrument to which
the Company or any Guarantor is a party or by which the Company or any Guarantor is bound;

     (iii) the Company or any Guarantor has paid or caused to be paid all sums payable by it
hereunder; and

     (iv) the Company has delivered irrevocable instructions to the Trustee hereunder to
apply the deposited money toward the payment of the Notes at maturity or the redemption
date, as the case may be.

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          (b) In addition, the Company must deliver an Officers’ Certificate and an Opinion of Counsel
to the Trustee stating that all conditions precedent to satisfaction and discharge have been
satisfied.

Section 11.02 Deposited Money and Government Securities to Be
 Held in Trust; Other
Miscellaneous Provisions.

          Subject to
 Section 11.03 hereof, all money and non-callable Government Securities (including
the proceeds thereof) deposited with the Trustee pursuant to Section 11.01 hereof in respect of the
outstanding Notes shall be held in trust and applied by the Trustee, in accordance with the
provisions of such Notes and this Indenture, to the payment, either directly or through any Paying
Agent (including the Company acting as Paying Agent) as the Trustee may determine, to the Holders
of such Notes of all sums due and to become due thereon in respect of principal, premium and
Liquidated Damages, if any, and interest, but such money be segregated from other funds except to
the extent required by law.

Section 11.03 Repayment to the Company.

          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, premium
and Liquidated Damages, if any, or interest on any Note and remaining unclaimed for two years after such principal, and premium,
if any, or interest has become due and payable shall be paid to the Company on its request or (if then held by
 the Company) shall be discharged from such trust; and the Holder of such Note shall thereafter 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, shall at the expense of the Company cause to be published once, in the New York Times or The Wall Street Journal
(national edition), notice that such money remains unclaimed and that, after a date
 specified therein, which shall not be less than 30 days from the date of such notification or publication,
any unclaimed balance of such money then remaining shall be repaid to the Company.

ARTICLE TWELVE

MISCELLANEOUS

Section 12.01 Trust Indenture Act Controls.

          If any
provision of this Indenture limits, qualifies or conflicts with the duties imposed by
TIA § 318(c), the imposed duties shall control.

Section 12.02 Notices.

          (a) Any
 notice or communication by the Company or any Guarantor, on the one hand, or the
Trustee on the other hand, to the other is duly given if in writing and delivered in Person or
mailed by first class mail (registered or certified, return receipt requested), telecopier or
overnight air courier guaranteeing next day delivery, to the others’ address:

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If to the Company:

The GEO Group

621 NW 53rd Street

Suite 700

Boca Raton, Florida 33487

Facsimile: (561) 999-7657

Attention: Brian Evans

With a copy to:

Akerman Senterfitt

One Southeast Third Avenue

28th Floor

Miami, Florida 33131-1714

Facsimile: (305) 374-5095

Attention: Jose Gordo

If to the Trustee:

Wells Fargo Bank, National Association

7000 Central Parkway

Suite 550

Atlanta, Georgia 30328

Facsimile: (770) 551-5118

Attention: Corporate Trust Services

          (b) The Company the Guarantors if any, or the Trustee, by notice to the others may designate
additional or different addresses for subsequent notices or communications.

          (c) All notices and communications (other than those sent to Holders) shall be deemed to have
been duly given: at the time delivered by hand, if personally delivered; five Business Days after
being deposited in the mail, postage prepaid, if mailed; when receipt acknowledged, if telecopied;
and the next Business Day after timely delivery to the courier, if sent by overnight air courier
guaranteeing next day delivery.

          (d) Any notice or communication to a Holder shall be mailed by first class mail, certified or
registered, return receipt requested, or by overnight air courier guaranteeing next day delivery to
its address shown on the register kept by the Registrar. Any notice or communication shall also be
so mailed to any Person described in TIA § 313(c), to the extent required by the TIA. Failure to
mail a notice or communication to a Holder or any defect in it shall not affect its sufficiency
with respect to other Holders.

          (e) If a notice or communication is mailed in the manner provided above within the time
prescribed, it is duly given, whether or not the addressee receives it.

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Notwithstanding the foregoing, notices to the Trustee shall be deemed to be effective only
when actually received by the Trustee’s Corporate Trust Department.

          (f) If the Company mails a notice or communication to Holders, it shall mail a copy to the
Trustee and each Agent at the same time.

Section 12.03 Communication by Holders of Notes with Other Holders of Notes.

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

Section 12.04 Certificate and Opinion as to Conditions Precedent.

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

     (i) an Officers’ Certificate in form and substance reasonably satisfactory to the
Trustee (which shall include the statements set forth in Section 12.05 hereof) stating that,
in the opinion of the signers, all conditions precedent and covenants, if any, provided for
in this Indenture relating to the proposed action have been satisfied; and

     (ii) an Opinion of Counsel in form and substance reasonably satisfactory to the Trustee
(which shall include the statements set forth in Section 12.05 hereof) stating that, in the
opinion of such counsel (who may rely upon the Officer’s Certificate as to matters of fact),
all such conditions precedent and covenants have been satisfied.

Section 12.05 Statements Required in Certificate or Opinion.

          Each certificate or opinion with respect to compliance with a condition or covenant provided
for in this Indenture (other than a certificate provided pursuant to TIA § 314(a)(4)) shall comply
with the provisions of TIA § 314(e) and shall include:

     (i) a statement that the Person making such certificate or opinion has read such
covenant or condition;

     (ii) 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;

     (iii) a statement that, in the opinion of such Person, he or she has made such
examination or investigation as is necessary to enable him to express an informed opinion as
to whether or not such covenant or condition has been satisfied; and

     (iv) a statement as to whether or not, in the opinion of such Person, such condition or
covenant has been satisfied.

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Section 12.06 Rules by Trustee and Agents.

          The Trustee may make reasonable rules for action by or at a meeting of Holders. The Registrar
or Paying Agent may make reasonable rules and set reasonable requirements for its functions.

Section 12.07 No Personal Liability of Directors, Officers, Employees and
Stockholders.

          No director, officer, employee, incorporator or stockholder of the Company or any Guarantor,
as such, shall have any liability for any obligations of the Company or the Guarantors under the
Notes, this Indenture, the Note Guarantees or for any claim based on, in respect of, or by reason
of, such obligations or their creation. Each Holder of Notes by accepting a Note waives and
releases all such liability. The waiver and release are part of the consideration for issuance of
the Notes. The waiver may not be effective to waive liabilities under the federal securities laws.

Section 12.08 Governing Law.

          THIS INDENTURE AND THE NOTES SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF
THE STATE OF NEW YORK, WITHOUT REGARD TO CONFLICTS OF LAW PRINCIPLES THEREOF.

Section 12.09 Consent to Jurisdiction.

          Any legal suit, action or proceeding arising out of or based upon this Indenture or the
transactions contemplated hereby (“Related Proceedings”) may be instituted in the federal courts of
the United States of America located in the City of New York or the courts of the State of New York
in each case located in the City of New York (collectively, the “Specified Courts”), and each party
irrevocably submits to the exclusive jurisdiction (except for proceedings instituted in regard to
the enforcement of a judgment of any such court (a “Related Judgment”), as to which such
jurisdiction is non-exclusive) of such courts in any such suit, action or proceeding. Service of
any process, summons, notice or document by mail to such party’s (other than the Trustee) address
set forth above shall be effective service of process for any suit, action or other proceeding
brought in any such court. The parties irrevocably and unconditionally waive any objection to the
laying of venue of any suit, action or other proceeding in the Specified Courts and irrevocably and
unconditionally waive and agree not to plead or claim in any such court has been brought in an
inconvenient forum.

Section 12.10 No Adverse Interpretation of Other Agreements.

          This Indenture may not be used to interpret any other indenture, loan or debt agreement of the
Company or any of its Subsidiaries or of any other Person. Any such indenture, loan or debt
agreement may not be used to interpret this Indenture.

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Section 12.11 Successors.

          All agreements of the Company in this Indenture and the Notes shall bind its successors. All
agreements of the Trustee in this Indenture shall bind its successors. All agreements of each
Guarantor in this Indenture shall bind its successors.

Section 12.12 Severability.

          In case any provision in this Indenture or the Notes 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 12.13 Counterpart Originals.

          The parties may sign any number of copies of this Indenture. Each signed copy shall be an
original, but all of them together represent the same agreement. The exchange of copies of this
Indenture and of signature pages by facsimile or PDF transmission shall constitute effective
execution and delivery of this Indenture as to the parties hereto and may be used in lieu of the
original Indenture for all purposes. Signatures of the parties hereto transmitted by facsimile or
PDF shall be deemed to be their original signatures for all purposes.

Section 12.14 Acts of Holders.

          (a) Any request, demand, authorization, direction, notice, consent, waiver or other action
provided by this Indenture to be given or taken by the Holders may be embodied in and evidenced by
one or more instruments of substantially similar tenor signed by such Holders in person or by
agents 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. 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
conclusive in favor of the Trustee and the Company if made in the manner provided in this Section
12.14.

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

          (c) Notwithstanding anything to the contrary contained in this Section 12.14, the principal
amount and serial numbers of Notes held by any Holder, and the date of holding the

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same, shall be proved by the register of the Notes maintained by the Registrar as provided in
Section 2.04 hereof.

          (d) If the Company shall solicit from the Holders of the Notes any request, demand,
authorization, direction, notice, consent, waiver or other Act, the Company may, at its option, by
or pursuant to a resolution of its Board of Directors, fix in advance a record date for the
determination of Holders entitled to give such request, demand, authorization, direction, notice,
consent, waiver or other Act, but the Company shall have no obligation to do so. Notwithstanding
TIA § 316(c), such record date shall be the record date specified in or pursuant to such
resolution, which shall be a date not earlier than the date 30 days prior to the first solicitation
of Holders generally in connection therewith or the date of the most recent list of Holders
forwarded to the Trustee prior to such solicitation pursuant to Section 2.06 hereof and not later
than the date such solicitation is completed. If such a record date is fixed, such request,
demand, authorization, direction, notice, consent, waiver or other Act may be given before or after
such record date, but only the Holders of record at the close of business on such record date shall
be deemed to be Holders for the purposes of determining whether Holders of the requisite proportion
of the then outstanding Notes have authorized or agreed or consented to such request, demand,
authorization, direction, notice, consent, waiver or other Act, and for that purpose the then
outstanding Notes shall be computed as of such record date; provided that no such authorization,
agreement or consent by the Holders on such record date shall be deemed effective unless it shall
become effective pursuant to the provisions of this Indenture not later than 90 days after the
record date.

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

          (f) Without limiting the foregoing, a Holder entitled hereunder to take any action hereunder
with regard to any particular Note may do so itself with regard to all or any part of the principal
amount of such Note 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 12.15 Benefit of Indenture.

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

Section 12.16 Table of Contents, Headings, Etc.

          The Table of Contents, Cross-Reference Table and Headings of the Articles and Sections of this
Indenture have been inserted for convenience of reference only, are not to be considered a part of
this Indenture and shall in no way modify or restrict any of the terms or provisions hereof.

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Section 12.17 Waiver of Jury Trial.

          EACH OF THE COMPANY AND THE GUARANTORS AND THE TRUSTEE HEREBY IRREVOCABLY WAIVES, TO THE
FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY AND ALL RIGHT TO TRIAL BY JURY IN ANY LEGAL
PROCEEDING ARISING OUT OF OR RELATING TO THIS INDENTURE, THE NOTES OR THE TRANSACTIONS CONTEMPLATED
HEREBY.

Section 12.18 Force Majeure.

          In no event shall the Trustee 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 Trustee shall use reasonable efforts which are
consistent with accepted practices in the banking industry to resume performance as soon as
practicable under the circumstances.

Section 12.19 U.S.A. Patriot Act.

          The parties hereto acknowledge that in accordance with Section 326 of the U.S.A. Patriot Act,
the Trustee, like all financial institutions and in order to help fight the funding of terrorism
and money laundering, is required to obtain, verify, and record information that identifies each
person or legal entity that establishes a relationship or opens an account with the Trustee. The
parties to this Indenture agree that they will provide the Trustee with such information as it may
request in order for the Trustee to satisfy the requirements of the U.S.A. Patriot Act.

[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

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	 	THE GEO GROUP, INC.

 	 
	 	By:  	/s/ John Bulfin
 	 
	 	 	Name:  	John Bulfin 	 
	 	 	Title:  	VP, Secretary 	 
	 
	 	CORRECTIONAL PROPERTIES PRISON FINANCE LLC

 	 
	 	By:  	/s/ Shayn March
 	 
	 	 	Name:  	Shayn March 	 
	 	 	Title:  	Treasurer 	 
	 
	 	CORRECTIONAL SERVICES CORPORATION

 	 
	 	By:  	/s/ John Bulfin
 	 
	 	 	Name:  	John Bulfin 	 
	 	 	Title:  	VP, Secretary 	 
	 
	 	CPT LIMITED PARTNER, LLC

 	 
	 	By:  	/s/ John Bulfin
 	 
	 	 	Name:  	John Bulfin 	 
	 	 	Title:  	VP, Secretary 	 
	 
	 	CPT OPERATING PARTNERSHIP LP

 	 
	 	By:  	/s/ Shayn March
 	 
	 	 	Name:  	Shayn March 	 
	 	 	Title:  	Treasurer 	 
	 
	 	GEO ACQUISITION II, INC.

 	 
	 	By:  	/s/ John Bulfin
 	 
	 	 	Name:  	John Bulfin 	 
	 	 	Title:  	VP, Secretary 	 
	 

 

 

	 	 	 	 	 
	 	GEO CARE, INC.

 	 
	 	By:  	/s/ Brian Evans
 	 
	 	 	Name:  	Brian Evans 	 
	 	 	Title:  	Treasurer 	 
	 
	 	GEO HOLDINGS I, INC.

 	 
	 	By:  	/s/ John Bulfin
 	 
	 	 	Name:  	John Bulfin 	 
	 	 	Title:  	VP, Secretary 	 
	 
	 	PUBLIC PROPERTIES DEVELOPMENT & LEASING LLC

 	 
	 	By:  	/s/ Brian Evans
 	 
	 	 	Name:  	Brian Evans 	 
	 	 	Title:  	VP, Finance 	 
	 
	 	GEO RE HOLDINGS LLC

 	 
	 	By:  	/s/ John Bulfin
 	 
	 	 	Name:  	John Bulfin 	 
	 	 	Title:  	VP, Secretary 	 
	 
	 	GEO TRANSPORT, INC.

 	 
	 	By:  	/s/ John Bulfin
 	 
	 	 	Name:  	John Bulfin 	 
	 	 	Title:  	VP, Secretary 	 
	 
	 	JUST CARE, INC.

 	 
	 	By:  	/s/ Brian Evans
 	 
	 	 	Name:  	Brian Evans 	 
	 	 	Title:  	VP, Treasurer 	 

 

 

	 	 	 	 	 

	 	 	 	 	 
	 	WELLS FARGO BANK, NATIONAL
 ASSOCIATION, as Trustee

 	 
	 	By:  	/s/ Elizabeth T. Wagner
 	 
	 	 	Name:  	Elizabeth T. Wagner 	 
	 	 	Title:  	Vice President 	 
	 

 

 

EXHIBIT A

[Face of Note]

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

     THIS GLOBAL NOTE IS HELD BY THE DEPOSITARY (AS DEFINED IN THIS INDENTURE GOVERNING THIS NOTE)
OR ITS NOMINEE IN CUSTODY FOR THE BENEFIT OF THE BENEFICIAL OWNERS HEREOF, AND IS NOT TRANSFERABLE
TO ANY PERSON UNDER ANY CIRCUMSTANCES EXCEPT THAT (I) THE TRUSTEE MAY MAKE SUCH NOTATIONS HEREON AS
MAY BE REQUIRED PURSUANT TO SECTION 2.07 OF THIS INDENTURE, (II) THIS GLOBAL NOTE MAY BE EXCHANGED
IN WHOLE BUT NOT IN PART PURSUANT TO SECTION 2.07(a) OF THIS INDENTURE, (III) THIS GLOBAL NOTE MAY
BE DELIVERED TO THE TRUSTEE FOR CANCELLATION PURSUANT TO SECTION 2.12 OF THIS INDENTURE AND (IV)
THIS GLOBAL NOTE MAY BE TRANSFERRED TO A SUCCESSOR DEPOSITARY WITH THE PRIOR WRITTEN CONSENT OF THE
COMPANY.

     THIS SECURITY HAS NOT BEEN REGISTERED UNDER THE U.S. SECURITIES ACT OF 1933, AS AMENDED (THE
“SECURITIES ACT”), AND, ACCORDINGLY, MAY NOT BE OFFERED OR SOLD WITHIN THE UNITED STATES OR TO, OR
FOR THE ACCOUNT OR BENEFIT OF, U.S. PERSONS EXCEPT AS SET FORTH BELOW. BY ITS ACQUISITION HEREOF,
THE HOLDER (1) REPRESENTS THAT (A) IT IS A “QUALIFIED INSTITUTIONAL BUYER” (AS DEFINED IN RULE 144A
UNDER THE SECURITIES ACT) OR (B) IT IS NOT A U.S. PERSON AND IS ACQUIRING THIS SECURITY IN AN
OFFSHORE TRANSACTION IN COMPLIANCE WITH RULE 904 UNDER THE SECURITIES ACT, (2) AGREES THAT IT WILL
NOT WITHIN ONE YEAR AFTER THE ORIGINAL ISSUANCE OF THIS SECURITY (OR ANY PREDECESSOR OF THIS
SECURITY) RESELL OR OTHERWISE TRANSFER THIS SECURITY EXCEPT (A) TO THE GEO GROUP, INC. OR ANY
SUBSIDIARY THEREOF, (B) INSIDE THE UNITED STATES TO A QUALIFIED INSTITUTIONAL BUYER IN COMPLIANCE
WITH RULE 144A UNDER THE SECURITIES ACT, (C) OUTSIDE THE UNITED STATES IN AN OFFSHORE TRANSACTION
IN COMPLIANCE WITH RULE 904 UNDER THE SECURITIES ACT (IF AVAILABLE), (D) PURSUANT TO THE EXEMPTION
FROM REGISTRATION PROVIDED BY RULE 144 UNDER THE SECURITIES ACT (IF AVAILABLE), (E) IN ACCORDANCE
WITH ANOTHER EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT OR (F) PURSUANT TO

A-1

 

AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT AND (3) AGREES THAT IT WILL GIVE TO
EACH PERSON TO WHOM THIS SECURITY IS TRANSFERRED A NOTICE SUBSTANTIALLY TO THE EFFECT OF THIS
LEGEND. IN CONNECTION WITH ANY TRANSFER OF THIS SECURITY WITHIN ONE YEAR AFTER THE ORIGINAL
ISSUANCE OF THIS SECURITY (OR ANY PREDECESSOR OF THIS SECURITY) PURSUANT TO (C), (D) OR (E), THE
HOLDER MUST, PRIOR TO SUCH TRANSFER, FURNISH TO THE TRUSTEE AND THE COMPANY SUCH CERTIFICATIONS,
LEGAL OPINIONS OR OTHER INFORMATION AS EITHER OF THEM MAY REASONABLY REQUIRE TO CONFIRM THAT SUCH
TRANSFER IS BEING MADE PURSUANT TO AN EXEMPTION FROM, OR IN A TRANSACTION NOT SUBJECT TO, THE
REGISTRATION REQUIREMENTS OF THE SECURITIES ACT. AS USED HEREIN, THE TERMS “OFFSHORE TRANSACTION,”
“UNITED STATES” AND “U.S. PERSON” HAVE THE MEANING GIVEN TO THEM BY REGULATION S UNDER THE
SECURITIES ACT.

A-2

 

          CUSIP [               ]

	 	 	 
	No.

	 	**$                    **

THE GEO GROUP, INC.

7 3/4% Senior Notes due 2017

Issue Date: October 20, 2009

          The GEO Group, Inc., a Florida Corporation (the “Company”, which term includes any successor
under this Indenture hereinafter referred to), for value received, promises to pay to CEDE & CO.,
or its registered assigns, the principal sum of [Amount of Note] on October 15, 2017.

Interest Payment Dates: April 15 and October 15, commencing April 15, 2010.

Record Dates: April 1 and October 1.

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

A-3

 

          IN WITNESS WHEREOF, the Company has caused this Note to be signed manually or by facsimile by
its duly authorized officers.

	 	 	 	 	 
	 	

THE GEO GROUP, INC.

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

(Trustee’s Certificate of Authentication)

This is one of the 7 3/4% Senior Notes due 2017 described in the within-mentioned Indenture.

Dated:

Wells Fargo Bank, National Association, as Trustee

	 	 	 	 	 
	By:
	 	 	 	 
	 

	 	 

Authorized Signatory
	 	 

A-4

 

[Reverse Side of Note]

THE GEO GROUP, INC.

7 3/4% Senior Notes due 2017

          Capitalized terms used herein shall have the meanings assigned to them in the Indenture
referred to below unless otherwise indicated.

          1. Interest. The Company promises to pay interest on the principal amount of this Note at 7
3/4% per annum from the date hereof until maturity and shall pay the Liquidated Damages, if any,
payable pursuant to Section 5 of the Registration Rights Agreement referred to below. The Company
shall pay interest and Liquidated Damages, if any, semi-annually in arrears on April 15 and October
15 of each year, or if any such day is not a Business Day, on the next succeeding Business Day
(each an “Interest Payment Date”). Interest on the Notes shall accrue from the most recent date to
which interest has been paid or, if no interest has been paid, from the date of original issuance;
provided that if there is no existing Default in the payment of interest, and if this Note is
authenticated between a record date referred to on the face hereof and the next succeeding Interest
Payment Date, interest shall accrue from such next succeeding Interest Payment Date; provided
further that the first Interest Payment Date shall be April 15, 2010. The Company shall pay
interest (including post-petition interest in any proceeding under any Bankruptcy Law) on overdue
principal and premium, if any, from time to time on demand at a rate that is 1% per annum in excess
of the rate then in effect; it shall pay interest (including post-petition interest in any
proceeding under any Bankruptcy Law) on overdue installments of interest and Liquidated Damages
(without regard to any applicable grace periods) from time to time on demand at the same rate to
the extent lawful. Interest shall be computed on the basis of a 360-day year of twelve 30-day
months.

          2. Method of Payment. The Company shall pay interest on the Notes (except defaulted interest)
and Liquidated Damages, if any, to the Persons who are registered Holders of Notes at the close of
business on the record date immediately preceding the Interest Payment Date, even if such Notes are
canceled after such record date and on or before such Interest Payment Date, except as provided in
Section 2.13 of the Indenture with respect to defaulted interest. The Notes shall be payable as to
principal, premium and Liquidated Damages, if any, and interest at the office or agency of the
Company maintained for such purpose in The City of New York maintained for such purposes, or, at
the option of the Company, payment of interest and Liquidated Damages, if any, may be made by check
mailed to the Holders at their addresses set forth in the register of Holders, and provided that
payment by wire transfer of immediately available funds shall be required with respect to principal
of and interest, premium and Liquidated Damages, if any, on, all Global Notes and all other Notes
the Holders of which shall have provided wire transfer instructions to the Company or the Paying
Agent. Such payment shall be 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.

          3. Paying Agent and Registrar. Initially, Wells Fargo Bank, National Association, the Trustee
under the Indenture, shall act as Paying Agent and Registrar. The Company may change any Paying
Agent or Registrar without notice to any Holder. The Company or any of its Subsidiaries may act in
any such capacity.

A-5

 

          4. Indenture. The Company issued the Notes under an Indenture dated as of October 20, 2009
(“Indenture”) between the Company and the Trustee. The terms of the Notes include those stated in
the Indenture and those made part of the Indenture by reference to the Trust Indenture Act of 1939,
as amended. The Notes are subject to all such terms, and Holders are referred to the Indenture and
such Act for a statement of such terms. To the extent any provision of this Note conflicts with
the express provisions of the Indenture, the provisions of the Indenture shall govern and be
controlling. The Indenture pursuant to which this Note is issued provides that an unlimited
aggregate principal amount of Additional Notes may be issued thereunder.

          5. Optional Redemption. (a) At any time on or prior to October 15, 2012, the Company may on
any one or more occasions redeem up to 35% of the aggregate principal amount of Notes originally
issued hereunder at a redemption price of 107.750% of the principal amount thereof, plus accrued
and unpaid interest and Liquidated Damages, if any, to the redemption date, with the net cash
proceeds of one or more Equity Offerings; provided that (A) at least 65% of the aggregate principal
amount of the Notes originally issued under the Indenture remains outstanding immediately after the occurrence of such redemption, excluding Notes held
by the Company and its Subsidiaries; and (B) the redemption must occur within 90 days of the date
of the closing of such Equity Offering.

          (b) At any time prior to October 15, 2013, the Company may, at its option, redeem all or a
part of the Notes upon not less than 30 nor more than 60 days’ prior notice at a redemption price
equal to the sum of (A) 100% of the principal amount thereof, plus (B) the Applicable Premium as of
the date of redemption, plus (C) accrued and unpaid interest and Liquidated Damages, if any, to the
date of redemption.

          (c) Except as set forth in clauses 5(a) and 5(b) above, the Company shall not have the option
to redeem the Notes on or prior to October 15, 2013. Thereafter, the Company may redeem all or a
part of the Notes upon not less than 30 nor more than 60 days’ notice, at the redemption prices
(expressed as percentages of principal amount) set forth below plus accrued and unpaid interest and
Liquidated Damages, if any, thereon, to the applicable redemption date, if redeemed during the
twelve-month period beginning on October 15 of the years indicated below:

	 	 	 	 	 
	Year	 	Percentage	 
	2013
	 	 	103.875	%
	2014
	 	 	101.938	%
	2015 and thereafter.
	 	 	100.000	%

          6. Repurchase at Option of Holder. (a) Upon the occurrence of a Change of Control, each
Holder of Notes will have the right to require the Company to repurchase all or any part (equal to
$2,000 or an integral multiple of $1,000 in excess thereof) of such Holder’s Notes pursuant to the
offer described below (the “Change of Control Offer”) at an offer price in cash equal to 101% of
the aggregate principal amount thereof plus accrued and unpaid interest and Liquidated Damages
thereon, if any, to the date of purchase (the “Change of Control Payment”). Within 30 days
following any Change of Control, the Company will mail a notice to each Holder

A-6

 

describing the transaction or transactions that constitute the Change of Control and offering to repurchase Notes
on the date specified in such notice, which date shall be no earlier than 30 days and no later than
60 days from the date such notice is mailed (the “Change of Control Payment Date”), pursuant to the
procedures required by the Indenture and described in such notice.

          (b) Within 360 days after the receipt of any Net Proceeds from an Asset Sale, the Company or
the applicable Restricted Subsidiary may apply those Net Proceeds, at its option: (i) to repay
permanently Indebtedness under the Credit Agreement (and with respect to Net Proceeds of a
Restricted Subsidiary that is not a Guarantor, Indebtedness of such Restricted Subsidiary) and, if
the Indebtedness permanently repaid is revolving credit Indebtedness, to correspondingly reduce
commitments with respect thereto; (ii) to acquire, or enter into a definitive agreement to acquire,
all or substantially all of the assets of, a Permitted Business or a majority of the Voting Stock
of a Person engaged in a Permitted Business, provided that such Person becomes a Restricted
Subsidiary and provided further, however, in the case of a definitive agreement, that such
acquisition closes within 120 days of such 360 day period; (iii) to make a capital expenditure in
or that is used or useful in a Permitted Business (provided that the completion of (a) construction
of new facilities, (b) expansions to existing facilities and (c) repair or construction of damaged
or destroyed facilities, in each case, which commences within such 360 days may extend for an
additional 360 day period if the Net Proceeds to be used for such construction, expansion or repair
are committed specifically for such activity within such 360 days); or (iv) to acquire other
long-term assets that are used or useful in a Permitted Business. Pending the final application of
any Net Proceeds, the Company may temporarily reduce revolving credit borrowings or otherwise
invest the Net Proceeds in any manner that is not prohibited by the Indenture. Any Net Proceeds
from Asset Sales that are not applied or invested as provided in the preceding sentence or that the
Company detemines will not be applied or invested as provided in the preceding sentence will
constitute “Excess Proceeds.” When the aggregate amount of Excess Proceeds exceeds $25.0 million,
the Company shall make an offer (an “Asset Sale Offer”) to all Holders of Notes and, at the
Company’s option, all holders of other Indebtedness that is pari passu with the Notes containing
provisions similar to those set forth in the Indenture with respect to offers to purchase or redeem
with the proceeds of sales of assets, to purchase on a pro rata basis the maximum principal amount
of Notes and such other pari passu Indebtedness that may be purchased out of the Excess Proceeds.
The offer price in any Asset Sale Offer will be equal to 100% of the principal amount, plus accrued
and unpaid interest and Liquidated Damages, if any, to the date of purchase, and shall be payable
in cash. If any Excess Proceeds remain after consummation of an Asset Sale Offer, the Company may use
those Excess Proceeds for any purpose not otherwise prohibited by the Indenture. If the aggregate
principal amount of Notes and other pari passu Indebtedness tendered into such Asset Sale Offer
exceeds the amount of Excess Proceeds, the Notes and such other pari passu Indebtedness shall be
purchased on a pro rata basis. Upon completion of each Asset Sale Offer, the amount of Excess
Proceeds will be reset at zero.

          7. Selection and Notice of Redemption. If less than all of the Notes are to be redeemed or
purchased in an offer to purchase at any time, the Trustee shall select the Notes to be redeemed or
purchased among the Holders of the Notes in compliance with the requirements of the principal
national securities exchange, if any, on which the Notes are listed or, if the Notes are not so
listed, on a pro rata basis (based on amounts tendered), by lot or in accordance with any other
method the Trustee considers fair and appropriate. In the event of partial redemption

A-7

 

by lot, the particular Notes to be redeemed shall be selected, unless otherwise provided herein, not less than
30 nor more than 60 days prior to the redemption date by the Trustee from the outstanding Notes not
previously called for redemption. Notices of redemption may not be conditional. If any Note is to
be redeemed in part only, the notice of redemption that relates to that Note will state the portion
of the principal amount thereof to be redeemed. A new Note in principal amount equal to the
unredeemed portion of the original Note will be issued in the name of the Holder thereof upon
cancellation of the original Note. Notes called for redemption become due on the date fixed for
redemption. On and after the redemption date, interest and Liquidated Damages, if any, cease to
accrue on Notes or portions of them called for redemption.

          8. Denominations, Transfer, Exchange. The Notes are in registered form without coupons in
denominations of $2,000 and integral multiples of $1,000. The transfer of Notes may be registered
and Notes may be exchanged as provided in the Indenture. The Registrar and the Trustee may require
a Holder, among other things, to furnish appropriate endorsements and transfer documents and the
Company may require a Holder to pay any taxes and fees required by law or permitted by the
Indenture. The Company is not required to transfer or exchange any Note selected for redemption.
Also, the Company is not required to transfer or exchange any Note for a period of 15 days before
the mailing of a notice of redemption of Notes.

          9. Persons Deemed Owners. The registered Holder of a Note will be treated as its owner for
all purposes.

          10. Amendment, Supplement and Waiver. Subject to certain exceptions, the Indenture or the
Notes may be amended or supplemented with the consent of the Holders of at least a majority in
principal amount of the then outstanding Notes and Additional Notes, if any, voting as a single
class (including, without limitation, consents obtained in connection with a purchase of, or tender
offer or exchange offer for, the Notes), and any existing default or compliance with any provision
of the Indenture or the Notes may be waived with the consent of the Holders of a majority in
principal of the then outstanding Notes and Additional Notes, if any, voting as a single class
(including, without limitation, consents obtained in connection with a purchase of, or tender offer
or exchange offer for, the Notes). Without the consent of any Holder of a Note, the Indenture or
the Notes may be amended or supplemented to cure any ambiguity, defect or inconsistency, to provide
for uncertificated Notes in addition to or in place of certificated Notes; to provide for the
assumption of the Company’s or any Guarantor’s obligations to Holders of Notes in the case of a
merger or consolidation or sale of all or substantially all of the Company’s or such Guarantor’s
assets; to make any change that would provide any additional rights or benefits to the Holders of
Notes or that does not materially adversely affect the legal rights under the Indenture of any such
Holder; to comply with requirements of the SEC in order to effect or maintain the qualification of
the Indenture under the Trust Indenture Act; to allow any Subsidiary to guarantee the Notes; to
conform the text of the Indenture, the Note Guarantees or the Notes to any provision of the
“Description of Notes” in the Offering Memorandum to the extent such provision in the “Description
of Notes” was intended to be a verbatim recitation of a provision of the Notes; to provide for the
issuance of Additional Notes in accordance with the limitations described herein; or to allow a
Subsidiary to execute a supplemental indenture for the purpose of providing a Note Guarantee in
accordance with the provisions of the Indenture.

A-8

 

          11. Defaults and Remedies. In the case of an Event of Default arising from certain events of
bankruptcy or insolvency, with respect to the Company or any of its Restricted Subsidiaries that is
a Significant Subsidiary or any group of Restricted Subsidiaries that, taken together, would constitute a
Significant Subsidiary, all outstanding Notes will become due and payable immediately without
further action or notice. If any other Event of Default occurs and is continuing, the Trustee or
the Holders of at least 25% in principal amount of the then outstanding Notes may declare all the
Notes to be due and payable immediately by notice in writing to the Company specifying the Event of
Default. Holders of the Notes may not enforce the Indenture or the Notes except as provided in the
Indenture. Subject to certain limitations, Holders of a majority in principal amount of the then
outstanding Notes may direct the Trustee in its exercise of any trust or power. The Trustee may
withhold from Holders of the Notes notice of any continuing Default or Event of Default (except a
Default or Event of Default relating to the payment of principal or interest or Liquidated Damages)
if it determines that withholding notice is in their interest. The Holders of a majority in
aggregate principal amount of the Notes then outstanding by notice to the Trustee may on behalf of
the Holders of all of the Notes waive any existing Default or Event of Default and its consequences
under the Indenture except a continuing Default or Event of Default in the payment of interest or
Liquidated Damages on, or the principal of, the Notes.

          12. Trustee Dealings with Company. The Trustee, in its individual or any other capacity, may
make loans to, accept deposits from, and perform services for the Company or its Affiliates, and
may otherwise deal with the Company or its Affiliates, as if it were not the Trustee.

          13. No Recourse Against Others. No director, officer, employee, incorporator or stockholder
of the Company or any Guarantor, as such, shall have any liability for any obligations of the
Company or the Guarantors under the Notes, the Indenture, the Note Guarantees or for any claim
based on, in respect of, or by reason of, such obligations or their creation. Each Holder of Notes
by accepting a Note waives and releases all such liability. The waiver and release are part of the
consideration for issuance of the Notes. The waiver may not be effective to waive liabilities
under the federal securities laws.

          14. Authentication. This Note shall not be valid until authenticated by the manual signature
of the Trustee or an authenticating agent.

          15. Additional Rights of Holders of Restricted Global Notes and Restricted Definitive Notes.
In addition to the rights provided to Holders under the Indenture, Holders of Restricted Global
Notes and Restricted Definitive Notes shall have all the rights set forth in the Registration
Rights Agreement dated as of October 20, 2009, between the Company and the parties named on the
signature pages thereof or, in the case of Additional Notes, Holders of Restricted Global Notes and
Restricted Definitive Notes shall have the rights set forth in one or more registration rights
agreement, if any, between the Company, the Guarantors, if any, and the other parties thereto,
relating to rights given by the Company and the Guarantors to the purchasers of Additional Notes
(the “Registration Rights Agreement”).

A-9

 

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

          The Company shall furnish to any Holder upon written request and without charge a copy of the
Indenture and/or the Registration Rights Agreement. Requests may be made to:

The GEO Group, Inc.

One Park Place

621 NW 53rd Street

Suite 700

Boca Raton, Florida 33487

Facsimile: (561) 999-7657

Attention: Brian Evans

With a copy to:

Akerman Senterfitt

One Southeast Third Avenue

25th Floor

Miami, Florida 33131-1714

Facsimile: (305) 374-5095

Attention: Jose Gordo, Esq.

A-10

 

ASSIGNMENT FORM

          To assign this Note, fill in the form below:

	 	 	 
	(I) or (we) assign and transfer this Note to:
	 	 

	 	 	 

	 	 	(Insert assignee’s legal
name)

 

(Insert assignee’s soc. sec. or tax I.D. no.)

 

 

 

 

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

	 	 	 
	and irrevocably appoint
	 	 

	 	 	 

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

Date:                                         

	 	 	 	 	 
	 	Your Signature:	 

	 	 	(Sign exactly as your name appears on the face of this Note)

Signature
Guarantee*:                                         

* Participant in a recognized Signature Guarantee
Medallion Program (or other signature guarantor
acceptable to the Trustee).

A-11

 

OPTION OF HOLDER TO ELECT PURCHASE

          If you want to elect to have this Note purchased by
the Company pursuant to Section 4.10 or
4.14 of the Indenture, check the appropriate box below:

▢ Section 4.10       ▢ Section 4.14

          If you want to elect to have only part of the Note
purchased by the Company pursuant to
Section 4.10 or Section 4.14 of the Indenture, state the amount you elect to have purchased:

$                                        

Date:                                         

	 	 	 	 	 
	 	 Your
Signature:                                                                                                    

                            (Sign exactly as your name appears on the face of this Note)

Tax Identification
No.:                                                                                    
       

 

Signature
Guarantee*:                                        

* Participant in a recognized Signature Guarantee
Medallion Program (or other signature
guarantor acceptable to the Trustee).

A-12

 

SCHEDULE OF EXCHANGES OF INTERESTS IN THE GLOBAL NOTE

          The following exchanges of a part of this Global Note for
an interest in another Global Note
or for a Definitive Note, or exchanges of a part of another Global Note or Definitive Note for an
interest in this Global Note, have been made:

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	Principal Amount at	 	 	 	 
	 	 	 	 	Amount of Decrease in	 	 	Amount of Increase in	 	 	Maturity	 	 	Signature of	 
	 	 	 	 	Principal Amount at	 	 	Principal Amount at	 	 	of this Global Note	 	 	Authorized Signatory	 
	 	 	 	 	Maturity	 	 	Maturity	 	 	Following such	 	 	of Trustee or	 
	Date of Exchange	 	 	of this Global Note	 	 	of this Global Note	 	 	decrease (or increase)	 	 	Note Custodian	 

A-13

 

EXHIBIT B

FORM OF CERTIFICATE OF TRANSFER

The GEO Group, Inc.

One Park Place

621 NW 53rd Street

Suite 700

Boca Raton, Florida 33487

Attention: John G. O’Rourke

Wells Fargo Bank –  DAPS Reorg.

MAC N9303-121

608 2nd Avenue South

Minneapolis, MN 55479

Telephone No.: (877) 872-4605

Fax No.: (866) 969-1290

Email: DAPSReorg@wellsfargo.com

          Re: 7 3/4% Senior Notes due 2017

          Reference is hereby made to the Indenture, dated as of October 20, 2009 (the “Indenture”),
between The GEO Group, Inc., a Florida Corporation (the “Company”) and Wells Fargo Bank, National
Association, as Trustee. Capitalized terms used but not defined herein shall have the meanings
given to them in the Indenture.

          ____________ (the “Transferor”) owns and proposes to transfer the Note[s] or interest
in such Note[s] specified in Annex A hereto, in the principal amount at maturity of $_________ in
such Note[s] or interests (the “Transfer”), to __________________ (the “Transferee”), as
further specified in Annex A hereto. In connection with the Transfer, the Transferor hereby
certifies that:

[CHECK ALL THAT APPLY]

     ▢      1. Check if Transferee will take delivery of a beneficial interest in the 144A
Global Note or a Definitive Note Pursuant to Rule 144A. The Transfer is being effected
pursuant to and in accordance with Rule 144A under the United States Securities Act of 1933, as
amended (the “Securities Act”), and, accordingly, the Transferor hereby further certifies that the
beneficial interest or Definitive Note is being transferred to a Person that the Transferor
reasonably believed and believes is purchasing the beneficial interest or Definitive Note for its
own account, or for one or more accounts with respect to which such Person exercises sole
investment discretion, and such Person and each such account is a “qualified institutional buyer”
within the meaning of Rule 144A in a transaction meeting the requirements of Rule 144A and such
Transfer is in compliance with any applicable blue sky securities laws of any state of the United
States. Upon consummation of the proposed Transfer in accordance with the terms of the Indenture,
the transferred beneficial interest or Definitive Note will be subject to the restrictions

B- 1

 

on transfer enumerated in the Private Placement Legend printed on the 144A Global Note and/or
the Definitive Note and in the Indenture and the Securities Act.

     ▢      2. Check if Transferee will take delivery of a beneficial interest in the
Regulation S Global Note or a Definitive Note pursuant to Regulation S. The Transfer is being
effected pursuant to and in accordance with Rule 903 or Rule 904 under the Securities Act and,
accordingly, the Transferor hereby further certifies that (i) the Transfer is not being made to a
person in the United States and (x) at the time the buy order was originated, the Transferee was
outside the United States or such Transferor and any Person acting on its behalf reasonably
believed and believes that the Transferee was outside the United States or (y) the transaction was
executed in, on or through the facilities of a designated offshore securities market and neither
such Transferor nor any Person acting on its behalf knows that the transaction was prearranged with
a buyer in the United States, (ii) no directed selling efforts have been made in contravention of
the requirements of Rule 903(b) or Rule 904(b) of Regulation S under the Securities Act, (iii) the
transaction is not part of a plan or scheme to evade the registration requirements of the
Securities Act and (iv) if the proposed transfer is being made prior to the expiration of the
restricted period, the transfer is not being made to a U.S. Person or for the account or benefit of
a U.S. Person (other than an Initial Purchaser). Upon consummation of the proposed transfer in
accordance with the terms of the Indenture, the transferred beneficial interest or Definitive Note
will be subject to the restrictions on Transfer enumerated in the Private Placement Legend printed
on the Regulation S Permanent Global Note, the Regulation S Global Note and/or the Definitive Note
and in the Indenture and the Securities Act.

     ▢      3. Check and complete if Transferee will take delivery of a beneficial interest in
a Definitive Note pursuant to any provision of the Securities Act other than Rule 144A or
Regulation S. The Transfer is being effected in compliance with the transfer restrictions
applicable to beneficial interests in Restricted Global Notes and Restricted Definitive Notes and
pursuant to and in accordance with the Securities Act and any applicable blue sky securities laws
of any state of the United States, and accordingly the Transferor hereby further certifies that
(check one):

     (a) such Transfer is being effected pursuant to and in accordance with Rule 144 under
the Securities Act;

or

     (b) such Transfer is being effected to the Company or a subsidiary thereof;

or

     (c) such Transfer is being effected pursuant to an effective registration statement
under the Securities Act and in compliance with the prospectus delivery requirements of the
Securities Act;

or

     (d) such Transfer is being effected to an Institutional Accredited Investor and
pursuant to an exemption from the registration requirements of the Securities Act other

B- 2

 

than Rule 144A, Rule 144 or Rule 904, and the Transferor hereby further certifies that
it has not engaged in any general solicitation within the meaning of Regulation D under the
Securities Act and the Transfer complies with the transfer restrictions applicable to
beneficial interests in a Restricted Global Note or Restricted Definitive Notes and the
requirements of the exemption claimed, which certification is supported by (1) a certificate
executed by the Transferee in the form of Exhibit D to the Indenture and (2) an Opinion of
Counsel provided by the Transferor or the Transferee (a copy of which the Transferor has
attached to this certification), to the effect that such Transfer is in compliance with the
Securities Act. Upon consummation of the proposed transfer in accordance with the terms of
the Indenture, the transferred beneficial interest or Definitive Note will be subject to the
restrictions on transfer enumerated in the Private Placement Legend printed on the
Definitive Notes and in the Indenture and the Securities Act.

          4. Check if Transferee will take delivery of a beneficial interest in an Unrestricted
Global Note or of an Unrestricted Definitive Note.

     ▢      (a) Check if Transfer is Pursuant to Rule 144. (i) The Transfer is being
effected pursuant to and in accordance with Rule 144 under the Securities Act and in compliance
with the transfer restrictions contained in the Indenture and any applicable blue sky securities
laws of any state of the United States and (ii) the restrictions on transfer contained in the
Indenture and the Private Placement Legend are not required in order to maintain compliance with
the Securities Act. Upon consummation of the proposed Transfer in accordance with the terms of the
Indenture, the transferred beneficial interest or Definitive Note will no longer be subject to the
restrictions on transfer enumerated in the Private Placement Legend printed on the Restricted
Global Notes, on Restricted Definitive Notes and in the Indenture.

     ▢      (b) Check if Transfer is Pursuant to Regulation S. (i) The Transfer is being
effected pursuant to and in accordance with Rule 903 or Rule 904 under the Securities Act and in
compliance with the transfer restrictions contained in the Indenture and any applicable blue sky
securities laws of any state of the United States and (ii) the restrictions on transfer contained
in the Indenture and the Private Placement Legend are not required in order to maintain compliance
with the Securities Act. Upon consummation of the proposed Transfer in accordance with the terms
of the Indenture, the transferred beneficial interest or Definitive Note will no longer be subject
to the restrictions on transfer enumerated in the Private Placement Legend printed on the
Restricted Global Notes, on Restricted Definitive Notes and in the Indenture.

     ▢      (c) Check if Transfer is Pursuant to Other Exemption. (i) The Transfer is
being effected pursuant to and in compliance with an exemption from the registration requirements
of the Securities Act other than Rule 144, Rule 903 or Rule 904 and in compliance with the transfer
restrictions contained in the Indenture and any applicable blue sky securities laws of any State of
the United States and (ii) the restrictions on transfer contained in the Indenture and the Private
Placement Legend are not required in order to maintain compliance with the Securities Act. Upon
consummation of the proposed Transfer in accordance with the terms of the Indenture, the
transferred beneficial interest or Definitive Note will not be subject to the restrictions on
transfer enumerated in the Private Placement Legend printed on the Restricted Global Notes or
Restricted Definitive Notes and in the Indenture.

B- 3

 

          This certificate and the statements contained herein are made for your benefit and the benefit
of the Company.

	 	 	 	 	 
	 	 	 
	 

	 	 	 	 [Insert Name of Transferor]
	 
	 	 	 	 
	 

	 	By:	 	 
	 

	 	 	 	 
	 

	 	 	 	Name:
	 

	 	 	 	Title:

Dated: ___________________________________

B- 4

 

ANNEX A TO CERTIFICATE OF TRANSFER

1. The Transferor owns and proposes to transfer the following:

[CHECK ONE OF (A) OR (B)]

	 	▢ 	 	(A)     A BENEFICIAL INTEREST IN THE:
	 
	 	 	 	(i)     144A Global Note (CUSIP _________); or
	 
	 	 	 	 (ii)     Regulation S Global Note (CUSIP _________); or
	 
	 	▢ 	 	(B)      A RESTRICTED DEFINITIVE NOTE.

2. After the Transfer the Transferee will hold:

[CHECK ONE]

	 	▢ 	 	(A)     A BENEFICIAL INTEREST IN THE:
	 
	 	 	 	(i)     144A Global Note (CUSIP _________); or
	 
	 	 	 	 (ii)     Regulation S Global Note (CUSIP _________); or
	 
	 	 	 	(iii)     Unrestricted Global Note (CUSIP _________); or
	 
	 	▢ 	 	(B)     A RESTRICTED DEFINITIVE NOTE; OR
	 
	 	▢ 	 	(C)     AN UNRESTRICTED DEFINITIVE NOTE,

in accordance with the terms of the Indenture.

B- 5

 

EXHIBIT C

FORM OF CERTIFICATE OF EXCHANGE

The GEO Group, Inc.

One Park Place

621 NW 53rd Street

Suite 700

Boca Raton, Florida 33487

Attention: John G. O’Rourke

Wells Fargo Bank -  DAPS Reorg.

MAC N9303-121

608 2nd Avenue South

Minneapolis, MN 55479

Telephone No.: (877) 872-4605

Fax No.: (866) 969-1290

Email: DAPSReorg@wellsfargo.com

          Re: 7 3/4% Senior Notes due 2017

Reference is hereby made to the Indenture, dated as of October 20, 2009 (the “Indenture”), between
The GEO Group, Inc., a Florida corporation (the “Company”) and Wells Fargo Bank, National
Association, as Trustee. Capitalized terms used but not defined herein shall have the meanings
given to them in the Indenture.

                                                                       (the “
Owner”) owns and proposes to exchange the Note[s] or interest
in such Note[s] specified herein, in the principal amount at maturity of $                     in such
Note[s] or interests (the “Exchange”). In connection with the Exchange, the Owner hereby certifies
that:

          1. Exchange of Restricted Definitive Notes or Beneficial Interests in a Restricted Global
Note for Unrestricted Definitive Notes or Beneficial Interests in an Unrestricted Global Note

     ▢       (a) Check if Exchange is from beneficial interest in a Restricted Global Note to
beneficial interest in an Unrestricted Global Note. In connection with the Exchange of the
Owner’s beneficial interest in a Restricted Global Note for a beneficial interest in an
Unrestricted Global Note in an equal principal amount at maturity, the Owner hereby certifies (i)
the beneficial interest is being acquired for the Owner’s own account without transfer, (ii) such
Exchange has been effected in compliance with the transfer restrictions applicable to the Global
Notes and pursuant to and in accordance with the United States Securities Act of 1933, as amended
(the “Securities Act”), (iii) the restrictions on transfer contained in the Indenture and the
Private Placement Legend are not required in order to maintain compliance with the Securities Act
and (iv) the beneficial interest in an Unrestricted Global Note is being acquired in compliance
with any applicable blue sky securities laws of any state of the United States.

C-1 

 

     ▢      (b) Check if Exchange is from beneficial interest in a Restricted Global Note to
Unrestricted Definitive Note. In connection with the Exchange of the Owner’s beneficial
interest in a Restricted Global Note for an Unrestricted Definitive Note, the Owner hereby
certifies (i) the Definitive Note is being acquired for the Owner’s own account without transfer,
(ii) such Exchange has been effected in compliance with the transfer restrictions applicable to the
Restricted Global Notes and pursuant to and in accordance with the Securities Act, (iii) the
restrictions on transfer contained in the Indenture and the Private Placement Legend are not
required in order to maintain compliance with the Securities Act and (iv) the Definitive Note is
being acquired in compliance with any applicable blue sky securities laws of any state of the
United States.

     ▢      (c) Check if Exchange is from Restricted Definitive Note to beneficial interest in
an Unrestricted Global Note. In connection with the Owner’s Exchange of a Restricted
Definitive Note for a beneficial interest in an Unrestricted Global Note, the Owner hereby
certifies (i) the beneficial interest is being acquired for the Owner’s own account without
transfer, (ii) such Exchange has been effected in compliance with the transfer
restrictions applicable to Restricted Definitive Notes and pursuant to and in accordance with
the Securities Act, (iii) the restrictions on transfer contained in the Indenture and the Private
Placement Legend are not required in order to maintain compliance with the Securities Act and (iv)
the beneficial interest is being acquired in compliance with any applicable blue sky securities
laws of any state of the United States.

     ▢      (d) Check if Exchange is from Restricted Definitive Note to Unrestricted
Definitive Note. In connection with the Owner’s Exchange of a Restricted Definitive Note for
an Unrestricted Definitive Note, the Owner hereby certifies (i) the Unrestricted Definitive Note is
being acquired for the Owner’s own account without transfer, (ii) such Exchange has been effected
in compliance with the transfer restrictions applicable to Restricted Definitive Notes and pursuant
to and in accordance with the Securities Act, (iii) the restrictions on transfer contained in the
Indenture and the Private Placement Legend are not required in order to maintain compliance with
the Securities Act and (iv) the Unrestricted Definitive Note is being acquired in compliance with
any applicable blue sky securities laws of any state of the United States.

          2. Exchange of Restricted Definitive Notes or Beneficial Interests in Restricted Global
Notes for Restricted Definitive Notes or Beneficial Interests in Restricted Global Notes

     ▢      (a) Check if Exchange is from beneficial interest in a Restricted Global Note to
Restricted Definitive Note. In connection with the Exchange of the Owner’s beneficial interest
in a Restricted Global Note for a Restricted Definitive Note with an equal principal amount at
maturity, the Owner hereby certifies that the Restricted Definitive Note is being acquired for the
Owner’s own account without transfer. Upon consummation of the proposed Exchange in accordance
with the terms of the Indenture, the Restricted Definitive Note issued will continue to be subject
to the restrictions on transfer enumerated in the Private Placement Legend printed on the
Restricted Definitive Note and in the Indenture and the Securities Act.

     ▢      (b) Check if Exchange is from Restricted Definitive Note to beneficial interest in
a Restricted Global Note. In connection with the Exchange of the Owner’s Restricted

C-2 

 

Definitive Note for a beneficial interest in the [CHECK ONE]  ▢ 144A Global Note, ▢ Regulation
S Global Note with an equal principal amount at maturity, the Owner hereby certifies (i) the
beneficial interest is being acquired for the Owner’s own account without transfer and (ii) such
Exchange has been effected in compliance with the transfer restrictions applicable to the
Restricted Global Notes and pursuant to and in accordance with the Securities Act, and in
compliance with any applicable blue sky securities laws of any state of the United States. Upon
consummation of the proposed Exchange in accordance with the terms of the Indenture, the beneficial
interest issued will be subject to the restrictions on transfer enumerated in the Private Placement
Legend printed on the relevant Restricted Global Note and in the Indenture and the Securities Act.

          This certificate and the statements contained herein are made for your benefit and the benefit
of the Company.

	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	[Insert Name of Transferor]
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	By:	 	 
	 

	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	Name:

Title:
	Dated:
	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 

C-3 

 

EXHIBIT D

FORM OF CERTIFICATE FROM

ACQUIRING INSTITUTIONAL ACCREDITED INVESTOR

The GEO Group, Inc.

One Park Place

621 NW 53rd Street

Suite 700

Boca Raton, Florida 33487

Attention: John G. O’Rourke

Wells Fargo Bank -  DAPS Reorg.

MAC N9303-121

608 2nd Avenue South

Minneapolis, MN 55479

Telephone No.: (877) 872-4605

Fax No.: (866) 969-1290

Email: DAPSReorg@wellsfargo.com

          Re: 7 3/4% Senior Notes due 2017

          Reference is hereby made to the Indenture, dated as of October 20, 2009 (the “Indenture”),
between The GEO Group, Inc., a Florida corporation (the “Company”) and Wells Fargo Bank, National
Association, as Trustee. Capitalized terms used but not defined herein shall have the meanings
given to them in the Indenture.

          In connection with our proposed purchase of $                     aggregate principal amount at
maturity of:

          (a) beneficial interest in a Global Note, or

          (b) a Definitive Note,

          we confirm that:

          1. We understand that any subsequent transfer of the Notes or any interest therein is subject
to certain restrictions and conditions set forth in the Indenture and the undersigned agrees to be
bound by, and not to resell, pledge or otherwise transfer the Notes or any interest therein except
in compliance with, such restrictions and conditions and the United States Securities Act of 1933,
as amended (the “Securities Act”).

          2. We understand that the offer and sale of the Notes have not been registered under the
Securities Act, and that the Notes and any interest therein may not be offered or sold except as
permitted in the following sentence. We agree, on our own behalf and on behalf of any accounts for
which we are acting as hereinafter stated, that if we should sell the Notes or any interest
therein, we will do so only (A) to the Company or any subsidiary thereof, (B) in accordance with
Rule 144A under the Securities Act to a “qualified institutional buyer” (as

D-1 

 

defined therein), (C) to an institutional “accredited investor” (as defined below) that, prior to such transfer,
furnishes (or has furnished on its behalf by a U.S. broker-dealer) to you and to the Company a
signed letter substantially in the form of this letter and an Opinion of Counsel in form reasonably
acceptable to the Company to the effect that such transfer is in compliance with the Securities
Act, (D) outside the United States in accordance with Rule 904 of Regulation S under the Securities
Act, (E) pursuant to the provisions of Rule 144(k) under the Securities Act or (F) pursuant to an
effective registration statement under the Securities Act, and we further agree to provide to any
person purchasing the Definitive Note or beneficial interest in a Global Note from us in a
transaction meeting the requirements of clauses (A) through (E) of this paragraph a notice advising
such purchaser that resales thereof are restricted as stated herein.

          3. We understand that, on any proposed resale of the Notes or beneficial interest therein, we
will be required to furnish to you and the Company such certifications, legal opinions and other
information as you and the Company may reasonably require to confirm that the proposed sale
complies with the foregoing restrictions. We further understand that the Notes purchased by us
will bear a legend to the foregoing effect.

          4. We are an institutional “accredited investor” (as defined in Rule 501(a)(1), (2), (3) or
(7) of Regulation D under the Securities Act) and have such knowledge and experience in financial
and business matters as to be capable of evaluating the merits and risks of our investment in the
Notes, and we and any accounts for which we are acting are each able to bear the economic risk of
our or its investment.

          5. We are acquiring the Notes or beneficial interest therein purchased by us for our own
account or for one or more accounts (each of which is an institutional “accredited investor”) as to
each of which we exercise sole investment discretion.

          You and the Company are entitled to rely upon this letter and are irrevocably authorized to
produce this letter or a copy hereof to any interested party in any administrative or legal
proceedings or official inquiry with respect to the matters covered hereby.

	 	 	 	 	 	 	 	 	 
	
 
	 

	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	[Insert Name of Accredited Investor]
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	By:	 	 
	 

	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	Name:

Title:
	Dated:
	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 

D-2 

 

EXHIBIT E

FORM OF SUPPLEMENTAL INDENTURE

TO BE DELIVERED BY SUBSEQUENT GUARANTORS

Supplemental Indenture (this “Supplemental Indenture”), dated as of                                         , among
                                                             (the “Guaranteeing Subsidiary”), a subsidiary of The GEO Group, Inc. (or its
successors), a Florida corporation (the “Company”) and Wells Fargo Bank, National Association (or
its permitted successor), as Trustee under the Indenture referred to below (the “Trustee”).

W I T N E S S E T H

          WHEREAS, the Company has heretofore executed and delivered to the Trustee an Indenture (the
“Indenture”), dated as of October 20, 2009 providing for the issuance of an aggregate principal
amount of $250.0 million of 7 3/4% Senior Notes due 2017 (the “Notes”);

          WHEREAS, the Indenture provides that under certain circumstances the Guaranteeing Subsidiary
shall execute and deliver to the Trustee a supplemental indenture pursuant to which the
Guaranteeing Subsidiary shall unconditionally guarantee all of the Company’s obligations under the
Notes and the Indenture on the terms and conditions set forth herein (the “Note Guarantee”); and

          WHEREAS, pursuant to Section 9.01 of the Indenture, the Trustee is authorized to execute and
deliver this Supplemental Indenture.

          NOW THEREFORE, in consideration of the foregoing and for other good and valuable
consideration, the receipt of which is hereby acknowledged, the Guaranteeing Subsidiary and the
Trustee mutually covenant and agree for the equal and ratable benefit of the Holders of the Notes
as follows:

          1. Capitalized Terms. Capitalized terms used herein without definition shall have the
meanings assigned to them in the Indenture.

          2. Agreement to Guarantee. The Guaranteeing Subsidiary hereby agrees to fully and
unconditionally, and along with all other Guarantors, to jointly and severally Guarantee the Notes
and the Company’s obligations under the Indenture in the manner set forth in Article Ten of the
Indenture and by execution and delivery of this Supplemental Indenture hereby agrees to become a
party to the Indenture as a Guarantor thereunder and hereby assumes all obligations and rights of a
Guarantor thereunder as if the undersigned Subsidiary Guarantor were initially a party to the
Indenture.

          3. Execution and Delivery. Each Guaranteeing Subsidiary agrees that the Note
Guarantees shall remain in full force and effect notwithstanding any failure to endorse on each
Note a notation of such Note Guarantee.

          4. NEW YORK LAW TO GOVERN. THE INTERNAL LAW OF THE STATE OF NEW YORK SHALL GOVERN AND
BE USED TO CONSTRUE THIS

E-1 

 

SUPPLEMENTAL INDENTURE BUT WITHOUT GIVING EFFECT TO APPLICABLE PRINCIPLES
OF CONFLICTS OF LAW TO THE EXTENT THAT THE APPLICATION OF THE LAWS OF ANOTHER JURISDICTION WOULD BE
REQUIRED THEREBY.

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

          6. Effect of Headings. The Section headings herein are for convenience only and shall
not affect the construction hereof.

          7. Trustee. The Trustee shall not be responsible in any manner whatsoever for or in
respect of the validity or sufficiency of this Supplemental Indenture or for or in respect of the
recitals contained herein, all of which recitals are made solely by the Guaranteeing Subsidiary and
the Company.

E-2 

 

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

Dated:                                          ,                     

	 	 	 	 	 
	 	[Guaranteeing Subsidiary]

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	THE GEO GROUP, INC.

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	WELLS FARGO BANK, NATIONAL 
 ASSOCIATION, as Trustee

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

E-3

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