Document:

SOUTHERN FIRST BANCSHARES,
INC.

 

Issuer

 

to

 

[
                                ]

 

 

Trustee

 

SENIOR INDENTURE

 

Dated as of __________,
20

 

Senior Debt Securities

TABLE OF
CONTENTS

					Page
	ARTICLE
      ONE	       	DEFINITIONS AND OTHER PROVISIONS OF GENERAL
    APPLICATION	     	2
	 
	Section 101.		Definitions		2
	Section 102.		Compliance Certificate and Opinions		8
	Section 103.		Form
      of Documents Delivered to Trustee		8
	Section 104.		Acts
      of Holders		9
	Section 105.		Notices, Etc., to Trustee and Company		10
	Section 106.		Notice to Holders		11
	Section 107.		Language of Notices		11
	Section 108.		Conflict With Trust Indenture Act		11
	Section 109.		Effect of Headings and Table of Contents		11
	Section 110.		Successors and Assigns		12
	Section 111.		Separability Clause		12
	Section 112.		Benefits of Indenture		12
	Section 113.		Governing Law		12
	Section 114.		Legal Holidays		12
	 
	ARTICLE TWO		SECURITIES FORMS		12
	 
	Section 201.		Forms Generally		12
	Section 202.		Form
      of Trustee’s Certificate of Authentication		13
	Section 203.		Securities in Global Form		13
	 
	ARTICLE THREE		THE
      SECURITIES		13
	 
	Section 301.		Amount Unlimited; Issuable in Series		13
	Section 302.		Denominations		16
	Section 303.		Securities in Foreign Countries		16
	Section 304.		Execution, Authentication, Delivery and Dating		16
	Section 305.		Temporary Securities		18
	Section 306.		Registration, Transfer and Exchange		18
	Section 307.		Mutilated, Destroyed, Lost and Stolen Securities		20
	Section 308.		Payment of Interest; Interest Rights Preserved		21
	Section 309.		Persons Deemed Owners		22
	Section 310.		Cancellations		23
	Section 311.		Computation of Interest		23
	Section 312.		Cusip Numbers		23
	 
	ARTICLE FOUR		SATISFACTION AND DISCHARGE		23
	 
	Section 401.		Satisfaction and Discharge of Indenture		23
	Section 402.		Application of Trust Money		24
	Section 403.		Definitions		25
	 
	ARTICLE FIVE		REMEDIES		26
	 
	Section 501.		Events of Default		26
	Section 502.		Acceleration of Maturity; Rescission and Annulment		27
	Section 503.		Collection of Indebtedness and Suits for Enforcement by
      Trustee		28

i

	Section 504.	       	Trustee May File Proofs of
      Claim	     	28
	Section 505.		Trustee May Enforce Claims Without
      Possession of Securities or Coupons		29
	Section 506.		Application of Money
      Collected		29
	Section 507.		Limitations on Suits		29
	Section 508.		Unconditional Right of Holders to
      Receive Principal, Premium, Interest and		
			Additional Amounts		30
	Section 509.		Restoration of Rights and
      Remedies		30
	Section 510.		Rights and Remedies
      Cumulative		30
	Section 511.		Delay or Omission Not
    Waiver		30
	Section 512.		Control of Holders		31
	Section 513.		Waiver of Past Defaults		31
	Section 514.		Waiver of Stay or Extension
      Laws		31
	 
	ARTICLE SIX		THE TRUSTEE		31
	 
	Section 601.		Notice of Defaults		31
	Section 602.		Certain Rights of
Trustee		32
	Section 603.		Not Responsible for Recitals or
      Issuance Securities		33
	Section 604.		May Hold Securities		33
	Section 605.		Money Held in Trust		33
	Section 606.		Compensation and
      Reimbursement		33
	Section 607.		Corporate Trustee Required;
      Eligibility; Conflicting Interests		34
	Section 608.		Resignation and Removal;
      Appointment of Successor		34
	Section 609.		Acceptance of Appointment by
      Successor		35
	Section 610.		Merger, Conversion, Consolidation
      or Succession to Business		36
	Section 611.		Appointment of Authenticating
      Agent		36
	 
	ARTICLE SEVEN		HOLDERS’ LISTS AND REPORTS BY
      TRUSTEE AND COMPANY		37
	 
	Section 701.		Company to Furnish Trustee Names
      and Addresses of Holders		37
	Section 702.		Preservation of Information;
      Communications to Holders		38
	Section 703.		Reports by Trustee		38
	Section 704.		Reports by Company		38
	 
	ARTICLE EIGHT		CONSOLIDATION, MERGER AND
      SALES		39
	 
	Section 801.		Company May Consolidate etc., Only
      on Certain Terms		39
	Section 802.		Successor Corporation Substituted
      for Company		39
	 
	ARTICLE NINE		SUPPLEMENTAL INDENTURES		40
	 
	Section 901.		Supplemental Indentures Without
      Consent of Holders		40
	Section 902.		Supplemental Indentures with
      Consent of Holders		41
	Section 903.		Execution of Supplemental
      Indentures		42
	Section 904.		Effect of Supplemental
      Indentures		42
	Section 905.		Conformity with Trust Indenture
      Act		42
	Section 906.		Reference in Securities to
      Supplemental Indentures		42
	 
	ARTICLE TEN		COVENANTS		42
	 
	Section 1001.		Payment of Principal, Premium, if
      any, and Interest		42
	Section 1002.		Maintenance of Office or
      Agency		42
	Section 1003.		Money for Securities Payments to
      be Held in Trust		43
	Section 1004.		Additional Amounts		44

ii

	Section 1005.	       	Statement as to Compliance; Notice of Certain
    Defaults	     	45
	Section 1006.		Limitation on Liens		45
	Section 1007.		Limitation on Certain Acquisitions		45
	Section 1008.		Payment of Taxes and Other Claims		46
	Section 1009.		Corporate Existence		46
	Section 1010.		Waiver of Certain Covenants		46
	Section 1011.		Calculation of Original Issue Discount		46
	 
	ARTICLE ELEVEN		REDEMPTION OF SECURITIES		46
	 
	Section 1101.		Applicability of Article		46
	Section 1102.		Election to Redeem; Notice to Trustee		46
	Section 1103.		Selection by Trustee of Securities to be Redeemed		47
	Section 1104.		Notice of Redemption		47
	Section 1105.		Deposit of Redemption Price		48
	Section 1106.		Securities Payable on Redemption Date		48
	Section 1107.		Securities Redeemed in Part		49
	Section 1108.		Conversion Arrangements on Call for Redemption		49
	 
	ARTICLE TWELVE		SINKING FUNDS		50
	 
	Section 1201.		Applicability of Article		50
	Section 1202.		Satisfaction of Sinking Fund Payments with
    Securities		50
	Section 1203.		Redemption of Securities for Sinking Fund		50
	 
	ARTICLE THIRTEEN		REPAYMENT AT THE OPTION OF HOLDERS		51
	 
	Section 1301.		Applicability of Article		51
	 
	ARTICLE FOURTEEN		MEETINGS OF HOLDERS		51
	 
	Section 1401.		Purposes for Which Meetings May Be Called		51
	Section 1402.		Call, Notice and Place of Meetings		51
	Section 1403.		Persons Entitled to Vote at Meetings		51
	Section 1404.		Quorum; Action		52
	Section 1405.		Determination of Voting Rights; Conduct and Adjournment of
      Meetings		52
	Section 1406.		Counting Votes and Recording Action of Meeting		53
	 
	ARTICLE FIFTEEN		CONVERSION		53
	 
	Section 1501.		Conversion Privilege		53
	Section 1502.		Manner of Exercise of Convertible Privilege		53
	Section 1503.		Cash
      Adjustment Upon Conversion		54
	Section 1504.		Conversion Price		54
	Section 1505.		Adjustment of Conversion Price		54
	Section 1506.		Effect of Reclassifications, Consolidations, Mergers or Sales
      on Conversion		
			Privilege		56
	Section 1507.		Taxes on Conversions		57
	Section 1508.		Company to Reserve Common Stock		57
	Section 1509.		Disclaimer by Trustee of Responsibility for Certain
      Matters		57
	Section 1510.		Company to Give Notice of Certain Events		58

iii

SOUTHERN FIRST BANCSHARES,
INC. 

Reconciliation and tie
between Trust Indenture Act of 1939, as amended, and Senior Indenture, dated as
of
               ,
20 .

	Trust Indenture Act
      Section		Indenture
      Section
	Section 310	  	(1)           	 	607
			(2)		607
			(5)		607
					607
	Section 311				604
					604
			(2)		108
	Section 312				701,
      702 (a)
					702
      (a)
					702
      (b)
	Section 313				703
      (a), 703 (b)
			(2)		108
					703
      (c)
					703
      (c)
	Section 314				704
			(1)		102
			(2)		102
			(3)		108
					102
	Section 315				108
					601
					108
					108
			(1)		108
			(2)		108
			(3)		108
					108
	Section 316				104
			(1)
      (A)		512
			(1)
      (B)		513
					508
					104
	Section 317		(1)		505
			(2)		504
					1003
	Section 318				108

Note: This reconciliation
and tie shall not, for any purpose, be deemed to be a part of this Senior
Indenture.

1

SENIOR INDENTURE, dated as
of __________, 20 (the “Indenture”), is made by and between Southern First
Bancshares, Inc., a corporation duly organized and existing under the laws of
the State of South Carolina (the “Company”), having its principal office at 100
Verdae Boulevard, Suite 100, Greenville, South Carolina 29607, and [
               ],
having its principal office at
[                ],
not in its individual capacity but solely as Trustee (the “Trustee”).

RECITALS

The Company has duly
authorized the execution and delivery of this Indenture to provide for the
issuance from time to time of its unsecured and unsubordinated debentures, notes
or other evidences of indebtedness (the “Securities”), unlimited as to principal
amount, to bear such rates of interest, to mature at such time or times, to be
issued in one or more series and to have such other provisions as shall be fixed
as hereinafter provided.

The Company has duly
authorized the execution and delivery of this Indenture and all things necessary
to make this Indenture a valid agreement of the Company, in accordance with its
terms, have been done.

This Indenture is subject
to the provisions of the Trust Indenture Act of 1939, as amended, that are
required to be part of this Indenture and shall, to the extent applicable, be
governed by such provisions.

NOW, THEREFORE, THIS
INDENTURE WITNESSETH:

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

ARTICLE
ONE

DEFINITIONS AND OTHER
PROVISIONS OF GENERAL APPLICATION

Section 101.
Definitions.

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

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

(3) 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; 

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

(5) the words “herein”,
“hereof”, “hereto” 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; 

(6) the word “or” is not
exclusive; 

(7) all words in the
singular include the plural and all words in the plural include the singular;
and

(8) the word “including”
means “including without limitations.”

Certain terms used principally in certain
Articles hereof are defined in those Articles.

2

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

“Additional Amounts” means any additional amounts which are required
hereby or by any Security, under circumstances specified herein or therein, to
be paid by the Company in respect of certain taxes imposed on Holders specified
therein and which are owing to such Holders.

“Affiliate” of any specified Person means any other Person directly or indirectly
controlling or controlled by or under direct or indirect common control with
such specified Person. For 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 the meanings correlative to the
foregoing.

“Authenticating Agent” means any Person authorized by the Trustee
pursuant to Section 611 to act on behalf of the Trustee to authenticate
Securities of one or more series.

“Authorized Newspaper” means a newspaper, in an official language of
the country of publication or in the English language, customarily published on
each Business Day, whether or not published on Legal Holidays, and of general
circulation in each place in connection with which the term is used or in the
financial community of each such place. Where successive publications are
required to be made in Authorized Newspapers the successive publications may be
made in the same or in different newspapers in the same city meeting the
foregoing requirements and in each case on any Business Day.

“Bank” means (i) any institution organized under the laws of the United
States, any State of the United States, the District of Columbia, any territory
of the United States, Puerto Rico, Guam, American Samoa or the Virgin Islands
which (a) accepts deposits that the depositor has a legal right to withdraw on
demand, and (b) engages in the business of making commercial loans and (ii) any
trust company organized under any of the foregoing laws.

“Bearer Security” means any Security in the form established
pursuant to Section 201 which is payable to bearer.

“Board Of Directors” means the board of directors of the Company or
any committee of that board duly authorized to act for the Company
hereunder.

“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, or a duly authorized committee thereof, and to be in
full force and effect on the date of such certification, and delivered to the
Trustee.

“Business Day”, except as may otherwise be provided herein or
in any Security, means any day, other than a Saturday or a Sunday, that is
neither a Legal Holiday nor a day on which banking institutions are authorized
or required by law, regulation or executive order to close.

“Called Securities” means any Convertible Security that is called
for redemption by the Company.

“Capital Stock” means, as to shares of a particular corporation,
outstanding shares of stock of any class whether now or hereafter authorized,
irrespective of whether such class shall be limited to a fixed sum or percentage
in respect of the rights of the holders thereof to participate in dividends and
in the distribution of assets upon the voluntary liquidation, dissolution or
winding up of such corporation.

“Commission” means the Securities and Exchange Commission, as from time to time
constituted, created under the Securities Exchange Act of 1934 or, if at any
time after the execution of this Indenture 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.

3

“Common Stock” means all shares now or hereafter authorized of
the class of common stock of the Company presently authorized and stock of any other class into which such
shares may hereafter have been changed.

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

“Company Request” and “Company Order” mean a
written request or order, as the case may be, signed in the name of the Company
by the Chairman of the Board of Directors, a Vice Chairman, 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.

“Convertible Security” or “Convertible Securities”
means any Security or Securities, as the case may be, which are by their terms
convertible into Common Stock.

“Conversion Price” means the price per share of Common Stock from
time to time in effect at which any Convertible Security may be converted into
Common Stock as determined by or pursuant to the terms of this
Indenture.

“Corporate Trust Office” means, the principal office of the Trustee, at
which at any particular time its corporate trust business shall be administered,
which office at the date of original execution of this Indenture is located at [
               ].

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

“Coupon” means any interest coupon appertaining to a Bearer Security.

“Date of Conversion” with respect to any Convertible Security or
portion thereof to be converted, means the date on which such Convertible
Security shall be surrendered for conversion and notice given in accordance with
the provisions of Article Fifteen.

“Defaulted Interest” has the meaning specified in Section
308.

“Dollars” or “$” means a dollar or other equivalent unit in the
currency of the United States, except as may otherwise be provided herein or in
any Security.

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

“Government Obligations”, with respect to any Securities unless otherwise
specified herein or therein, means (i) direct obligations of the United States
of America or the government or governments which issued the currency, currency
unit or composite currency in which any Securities are payable, for the payment
of which its full faith and credit is pledged or (ii) obligations of a Person
controlled or supervised by and acting as an agency or instrumentality of the
United States of America or such government or governments which issued the
currency, currency unit or composite currency in which such Securities are
payable, the payment of which is unconditionally guaranteed as a full faith and
credit obligation by the United States of America or such other government or
governments, which, in either case, are not callable or redeemable at the option
of the issuer or issuers thereof, and shall also include a depository receipt
issued by a bank or trust company as custodian with respect to any such
Government Obligation or a specific payment of interest on or principal of any
such Government Obligation held by such custodian for the account of the holder
of a depository receipt, PROVIDED that (except as required by law) such
custodian is not authorized to make any deduction from the amount payable to the
holder of such depository receipt from any amount received by the custodian in
respect of the Government Obligation or the specific payment of interest on or
principal of the Government Obligation evidenced by such depository
receipt.

4

“Holder”, in the case of any Registered Security, means the Person in whose name
such Security is registered in the Security Register and, in the case of any
Bearer Security, means the bearer thereof and, in the case of any Coupon, means
the bearer thereof.

“Indenture” means this instrument as originally executed or as it may from time to
time be supplemented or amended by one or more indentures supplemental hereto
entered into pursuant to the applicable provisions hereof, and with respect to
any Security shall include the terms of such Securities established as
contemplated by Section 301; PROVIDED, HOWEVER, that, if at any time more than
one Person is acting as Trustee under this instrument, “INDENTURE” shall mean,
with respect to any one or more series of Securities for which such Person is
Trustee, this instrument as originally executed or as it may from time to time
be supplemented or amended by one or more indentures supplemental hereto entered
into pursuant to the applicable provisions hereof and shall include the terms of
the or those particular series of Securities for which such Person is Trustee
established as contemplated by Section 301, exclusive, however, of any
provisions or terms which relate solely to other series of Securities for which
such Person is Trustee, regardless of when such terms or provisions were
adopted, and exclusive of any provisions or terms adopted by means of one or
more indentures supplemental hereto executed and delivered after such Person had
become such Trustee but to which such Person, as such Trustee, was not a
party.

“Independent Public Accountants” means accountants or a firm of accountants that
are independent public accountants with respect to the Company within the
meaning of the Securities Act of 1933, as amended, and the rules and regulations
promulgated by the Commission thereunder who may be the independent public
accountants regularly retained by the Company or who may be other independent
public accountants. Such accountants or firm shall be entitled to rely upon any
Opinion of Counsel as to the interpretation of any legal matters relating to the
Indenture or certificates required to be provided hereunder.

“Interest”, with respect to any Original Issue Discount Security which by its
terms bears interest only after Maturity, means interest payable after Maturity
and, with respect to any Security which provides for the payment of Additional
Amounts pursuant to Section 1004, includes such Additional Amounts.

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

“Legal Holiday”, except as otherwise may be provided herein or
in any Securities, with respect to any Place of Payment or other location, means
a Saturday, a Sunday or a day on which banking institutions or trust companies
in such Place of Payment or other location are not authorized or obligated to be
open.

“Maturity”, 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, notice of redemption, notice of option to elect repayment or
otherwise.

“Officers’ Certificate” means a certificate signed by the Chairman of
the Board, a Vice Chairman, 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.

“Opinion Of Counsel”, except as otherwise provided herein or in any
Security, means a written Opinion of Counsel, who may be an employee of or
counsel for the Company or other counsel.

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

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

(a) Securities theretofore
cancelled by the Trustee or the Security Registrar or delivered to the Trustee
or the Security Registrar for cancellation; 

5

(b) Securities, or portions
thereof for whose payment or redemption or repayment at the option of the Holder
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 and any Coupons appertaining thereto, 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; 

(c) Securities, except to
the extent provided in Section 403, with respect to which the Company has
effected defeasance and/or covenant defeasance pursuant to Section 403 hereof;
and 

(d) Securities which have
been paid pursuant to Section 307 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 Outstanding Securities
have given any request, demand, authorization, direction, notice, consent or
waiver hereunder or are present at a meeting of Holders of Securities for quorum
purposes and for purposes of making the calculations required by Section 313 of
the Trust Indenture Act, (i) the principal amount of an Original Issue Discount
Security that may be counted in making such determination or calculation and
that shall be deemed to be outstanding for such purposes shall be equal to the
amount of the principal thereof that pursuant to the terms of such Original
Issue Discount Security would be declared (or shall have been declared to be)
due and payable upon a declaration of acceleration pursuant to Section 502 at
the time of such determination or calculation, and (ii) the principal amount of
any Security denominated other than in Dollars that may be counted in making
such determination or calculation and that shall be deemed outstanding for such
purpose shall be equal to the Dollar equivalent, determined by the Company as of
the date such Security is originally issued by the Company, of the principal
amount (or, in the case of an Original Issue Discount Security, the Dollar
equivalent as of such date of original issuance of the amount determined as
provided in clause (i) above) of such Security, and (iii) Securities owned by
the Company or any other obligor upon the Securities or any Affiliate of the
Company or such other obligor, shall be disregarded and deemed not to be
Outstanding, except that, in determining whether the Trustee shall be protected
in making any such calculation or 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 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 such other
obligor. 

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

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

“Place Of Payment”, with respect to any Security, means the place
or places where the principal of (and premium, if any) and interest on the
Securities of that series are payable as specified in or pursuant to Section
301(9) or Section 1002.

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

6

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

“Redemption
Price”, with respect to any
Security or portion thereof to be redeemed, means the price at which it is to be
redeemed as determined by or pursuant to the provisions of this
Indenture.

“Registered
Security” means any Security
established pursuant to Section 201 which is registered and the transfer or
exchange thereof is registrable in the Security Register.

“Regular Record
Date” for the interest payable on
any Registered Security on any Interest Payment Date therefor means the date, if
any, specified in such Security as the “Regular Record Date”.

“Responsible
Officer” when used with respect
to the Trustee means any officer within the corporate trust department of the
Trustee, including the vice president, any assistant vice president, assistant
treasurer, or any other officer of the Trustee who customarily performs
functions similar to those performed by the Persons who at the time shall be
such officers, respectively, or to whom any corporate trust matter is referred
because of such person’s knowledge of and familiarity with the particular
subject and who shall have direct responsibility for the administration of this
Indenture.

“Security” or “Securities” means any
Security or Securities, as the case may be, authenticated and delivered under
this Indenture; PROVIDED, HOWEVER, that if at any time there is more than one
Person acting as Trustee under this Indenture, “Securities” with respect to the
Indenture as to which such Person is Trustee shall have the meaning stated in
the first recital of this Indenture and shall more particularly mean Securities
authenticated and delivered under this Indenture, exclusive, however, of
Securities of any series as to which such Person is not Trustee.

“Security
Register” and “Security Registrar” have the respective meanings specified in
Section 306.

“Special Record
Date” for the payment of any
Defaulted Interest on any registered Security means a date fixed by the Trustee
pursuant to Section 308.

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

“Subsidiary” means any corporation of which at the time of
determination the Company and/or one or more Subsidiaries owns or controls
directly or indirectly more than 50% of the shares of Voting Stock.

“Subsidiary
Bank” means any Subsidiary which
is a Bank.

“Trust Indenture
Act” means the Trust Indenture
Act of 1939 as in force at the date as of which this instrument was executed,
except as provided in Section 905.

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

“United
States”, except as otherwise
provided herein or in any Security, means the United States of America (including the States and the District of
Columbia) , its territories and possessions and other areas subject to its
jurisdiction.

7

“United States
Alien”, except as otherwise
provided herein or in any Security, means any Person who, for United States
Federal income tax purposes, is a foreign corporation, a non-resident alien
individual, a non-resident alien fiduciary of a foreign estate or trust, or a
foreign partnership one or more of the members of which is, for United States
Federal income tax purposes, a foreign corporation, a non-resident alien
individual or a non-resident alien fiduciary of a foreign estate or
trust.

“U.S.
Depository” or “Depository” means, with respect to any Security issuable or issued in the form of
one or more global Securities, the Person designated as U.S. Depository by the
Company pursuant to Section 301, which must be a clearing agency registered
under the Securities Exchange Act of 1934, as amended, and, if so provided
pursuant to Section 301 with respect to any Security, any successor to such
Person. If at any time there is more than one such Person, “U.S. Depository” or
“Depository” shall mean, with respect to any Securities, the qualifying entity
which has been appointed with respect to such Securities.

“Vice
President”, 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”.

“Voting
Stock” means stock of a
corporation of the class or classes having general voting power under ordinary
circumstances to elect at least a majority of the board of directors, managers
or trustees of such corporation provided that, for the purposes hereof, stock
which carries only the right to vote conditionally on the happening of an event
shall not be considered voting stock whether or not such event shall have
happened.

Section 102. Compliance
Certificates and Opinions.

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

Every certificate or opinion with respect to compliance with a condition
or covenant provided for in this Indenture and in any applicable Security
(except Section 1005) shall include:

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

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

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

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

Section 103. Form of
Documents Delivered to Trustee.

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

8

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

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 or any Security, they may, but need not, be
consolidated and form one instrument.

Section 104. Acts of
Holders.

(a)
Any request, demand, authorization, direction, notice, consent, waiver or other
action provided by this Indenture to be given or taken by Holders may be
embodied in and evidenced by one or more instruments of substantially similar
tenor signed by such Holders in person or by agent duly appointed in writing.
If, but only if, Securities of a series are issuable as Bearer Securities, any
request, demand, authorization, direction, notice, consent, waiver or other
action provided by this Indenture to be given or taken by Holders of Securities
of such series may, alternatively, be embodied in and evidenced by the record of
Holders of Securities of such series voting in favor thereof, either in person
or by proxies duly appointed in writing, at any meeting of Holders of Securities
of such series duly called and held in accordance with the provisions of Article
Fourteen, or a combination of such instruments and any such record. Except as
herein otherwise expressly provided, such action shall become effective when
such instrument or instruments or record or both are delivered to the Trustee
and, where it is hereby expressly required, to the Company. Such instrument or
instruments and any such record (and the action embodied therein and evidenced
thereby) are herein sometimes referred to as the “Act” of the Holders signing
such instrument or instruments and so voting at any such meeting. Proof of
execution of any such instrument or of a writing appointing any such agent, or
of the holding by any Person of a Security, shall be sufficient for any purpose
of this Indenture and (subject to Section 315 of the Trust Indenture Act)
conclusive in favor of the Trustee and the Company and any agent of the Trustee
or the Company, if made in the manner provided in this Section. The record of
any meeting of Holders of Securities shall be proved in the manner provided in
Section 1406.

Without limiting the generality of this Section 104, unless otherwise
established in or pursuant to a Board Resolution or set forth or determined in
an Officers’ Certificate, or established in one or more indentures supplemental
hereto, pursuant to Section 301, a Holder, including a U.S. Depository that is a
Holder of a global Security, may make, give or take, by a proxy, or proxies,
duly appointed in writing, any request, demand, authorization, direction,
notice, consent, waiver or other action provided in this Indenture to be made,
given or taken by Holders, and a U.S. Depository that is a Holder of a global
Security may provide its proxy or proxies to the beneficial owners of interests
in any such global Security through such U.S. Depository’s standing instructions
and customary practices.

The
Trustee shall fix a record date, which shall be not more than 30 days prior to
the first solicitation of such Holders, for the purpose of determining the
Persons who are beneficial owners of interest in any permanent global Security
held by a U.S. Depository entitled under the procedures of such U.S. Depository
to make, give or take, by a proxy or proxies duly appointed in writing, any
request, demand, authorization, direction, notice, consent, waiver or other
action provided in this Indenture to be made, given or taken by Holders. If such
a record date is fixed, the Holders on such record date or their duly appointed
proxy or proxies, and only such Persons, shall be entitled to make, give or take
such request, demand, authorization, direction, notice, consent, waiver or other
action, whether or not such Holders remain Holders after such record date. No
such request, demand, authorization, direction, notice, consent, waiver or other
action shall be valid or effective if made, given or taken more than 90 days
after such record date.

(b)
The fact and date of the execution by any Person of any such instrument or
writing may be proved in any reasonable manner which the Trustee deems
sufficient and in accordance with such reasonable rules as the Trustee may
determine; and the Trustee may in any instance require further proof with
respect to any of the matters referred to in this Section.

9

(c)
The ownership, principal amount and serial numbers of Registered Securities held
by any Person, and the date of the commencement and the date of termination of
holding the same, shall be proved by the Security Register.

(d)
The ownership, principal amount and serial numbers of Bearer Securities held by
any Person, and the date of the commencement and the date of termination of
holding the same, may be proved by the production of such Bearer Securities or
by a certificate executed, as depositary, by any Bank, banker or other
depositary reasonably acceptable to the Company, wherever situated, if such
certificate shall be deemed by the Trustee to be satisfactory, showing that at
the date therein mentioned such Person had on deposit with such depositary, or
exhibited to it, the Bearer Securities therein described; or such facts may be
proved by the certificate or affidavit of the Person holding such Bearer
Securities, if such certificate or affidavit is deemed by the Trustee to be
satisfactory. The Trustee and the Company may assume that such ownership of any
Bearer Security continues until (1) another certificate or affidavit bearing a
later date issued in respect of the same Bearer Security is produced, or (2)
such Bearer Security is produced to the Trustee by some other Person, or (3)
such Bearer Security is surrendered in exchange for a Registered Security, or
(4) such Bearer Security is no longer Outstanding. The principal amount and
serial numbers of Bearer Securities held by the Person so executing such
instrument or writing and the date of the commencement and the date of
termination of holding the same may also be proved in any other manner which the
Trustee deems sufficient.

(e)
If the Company shall solicit from the Holders of any Registered Securities any
request, demand, authorization, direction, notice, consent, waiver or other Act,
the Company may at its option, by Board Resolutions, fix in advance a record
date, which shall be not more than 30 days prior to the first solicitation of
such Holders, for the determination of Holders of Registered Securities entitled
to give such request, demand, authorization, direction, notice, consent, waiver
or other Act, but the Company shall have no obligation to do so. 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 Registered Securities 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 Outstanding Securities have
authorized or agreed or consented to such request, demand, authorization,
direction, notice, consent, waiver or other Act, and for that purpose the
Outstanding Securities shall be computed as of such record date; provided no
such authorization, agreement or consent of the Holders of Registered Securities
shall be deemed effective unless it shall become effective pursuant to the
provisions of this Indenture not later than six months after the record
date.

(f)
Any request, demand, authorization, direction, notice, consent, waiver or other
action by 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 or suffered to be done by the Trustee, any Security Registrar, any
Paying Agent or the Company in reliance thereon, whether or not notation of such
action is made upon such Security.

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

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

(1)
the Trustee by any Holder or by the Company shall be sufficient for every
purpose hereunder if made, given, furnished or filed in writing to or with the
Trustee at its Corporate Trust Office, 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 the attention
of its Treasurer at the address of its principal office specified in the first
paragraph of this Indenture or at any other address previously furnished in
writing to a Responsible Officer of the Trustee by the Company. 

10

Section 106. Notice to
Holders; Waiver.

Except as otherwise expressly provided herein or in any Security,
where this Indenture provides for notice to Holders of any event,

(1)
such notice shall be sufficiently given to Holders of Registered Securities if
in writing and mailed, first-class postage prepaid, to each Holder of a
Registered Security affected by such event, at his address as it appears in the
Security Register, not later than the latest date, and not earlier than the
earliest date, prescribed for the giving of such Notice; and 

(2)
such notice shall be sufficiently given to Holders of Bearer Securities, if any,
if published in an Authorized Newspaper and, if such Securities are then listed
on any stock exchange outside the United States, in an Authorized Newspaper in
such city as the Company shall advise the Trustee that such stock exchange so
requires, on a Business Day at least twice, the first such publication to be not
earlier than the earliest date and not later than the latest date prescribed for
the giving of such notice. 

(3)
In any case where notice to Holders of Registered Securities is given by mail,
neither the failure to mail such notice, nor any defect in any notice so mailed,
to any particular Holder of a Registered Security shall affect the sufficiency
of such notice with respect to other Holders of Registered Securities or the
sufficiency of any notice to Holders of Bearer Securities given as provided
herein. Any notice which is mailed in the manner herein provided shall be
conclusively presumed to have been duly given or provided. In the 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. 

In
case by reason of the suspension of publication of any Authorized Newspaper or
Authorized Newspapers or by reason of any other cause it shall be impracticable
to publish any notice to Holders of Bearer Securities as provided above, then
such notification to Holders of Bearer Securities as shall be given with the
approval of the Trustee shall constitute sufficient notice to such Holders for
every purpose hereunder. Neither failure to give notice by publication to
Holders of Bearer Securities as provided above, nor any defect in any notice so
published, shall affect the sufficiency of any notice mailed to Holders of
Registered Securities as provided above.

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.

Section 107. Language of
Notices.

Any
request, demand, authorization, direction, notice, consent, election or waiver
required or permitted under this Indenture shall be in the English language,
except that, if the Company so elects, any published notice may be in an
official language of the country of publication.

Section 108. Conflict With
Trust Indenture Act.

If
any provision hereof limits, qualifies or conflicts with the duties imposed
pursuant to Section 318(c) of the Trust Indenture Act, such imposed duties shall
control.

Section 109. 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 110. 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 111. Separability
Clause.

In
case any provision in this Indenture, any Security or any Coupon 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 112. Benefits Of
Indenture.

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

Section 113. Governing
Law.

This
Indenture, the Securities and the Coupons shall be governed by and construed in
accordance with the laws of the State of New York applicable to agreements made
or instruments entered into and, in each case, performed in said
state.

Section 114. Legal
Holidays.

In
any case where any Interest Payment Date, Redemption Date or Stated Maturity of
any Security, or the last day on which a Holder has the right to convert these
Securities, is not a Business Day at any Place of Payment, then (notwithstanding
any other provision of this Indenture, any Security or Coupon other than a
provision in any Security or any Coupon that specifically states that such
provision shall apply in lieu of this Section) payment of interest or any
Additional Amounts 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 the last such day of conversion, and no interest
shall accrue on the amount so payable for the period from and after such
Interest Payment Date, Redemption Date or Stated Maturity, as the case may
be.

ARTICLE
TWO

SECURITIES
FORMS

Section 201. Forms
Generally.

Each
Registered Security, Bearer Security, Coupon and temporary global Security
issued pursuant to this Indenture shall be in the form established by or
pursuant to a Board Resolution or in one or more indentures supplemental hereto,
shall have appropriate insertions, omissions, substitutions and other variations
as are required or permitted by this Indenture or any indenture supplemental
hereto and may have such letters, numbers or other marks of identification and
such legends or endorsements placed thereon as may, consistently herewith, be
determined by the officers executing such Security, as evidenced by their
execution of such Security.

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

12

Section 202. Form of
Trustee’s Certificate of Authentication.

Subject to Section 611, the Trustee’s certificate of authentication shall
be in substantially the following form:

This
certificate represents Securities of the series designated therein referred to
in the within-mentioned Indenture.

	      Dated:	[                        
      ],
	 	not
      in its individual capacity but solely as Trustee
	 
	 
		             
    	By:	/s/
			 	Authorized Signatory

Section 203. Securities in
Global Form.

If
Securities of a series are issuable in global form, any such Security may
provide that it shall represent the aggregate amount of Outstanding Securities
of such series from time to time endorsed thereon and may also provide that the
aggregate amount of Outstanding Securities represented thereby may from time to
time be increased or reduced to reflect exchanges. Any endorsement of any
Security in global form to reflect the amount, or any increase or decrease in
the amount, or changes in the rights of Holders, of Outstanding Securities
represented thereby shall be made in such manner and by such Person or Persons
as shall be specified therein or in the Company Order to be delivered pursuant
to Section 304 or 305 with respect thereto. Subject to the provisions of Section
304 and, if applicable, Section 305, the Trustee shall deliver and redeliver any
Security in permanent global form in the manner and upon instructions given by
the Person or Persons specified therein or in the applicable Company Order. If a
Company Order pursuant to Section 304 or 305 has been, or simultaneously is,
delivered, any instructions by the Company with respect to a Security in global
form shall be in writing but need not comply with Section 102 and need not be
accompanied by an Opinion of Counsel.

The
provisions of the immediately preceding sentence shall apply to any Security
represented by a Security in global form if such Security was never issued and
sold by the Company and the Company delivers to the Trustee the Security in
global form together with written instructions (which need not comply with
Section 102 and need not be accompanied by an Opinion of Counsel) with regard to
the reduction in the principal amount of Securities represented
thereby.

Notwithstanding the provisions of Section 308, unless otherwise specified
as contemplated by Section 301, payment of principal of and any premium and
interest on any Security in permanent global form shall be made to the Person or
Persons specified therein.

Notwithstanding the provisions of Section 309 and except as provided in
the preceding paragraph, the Company, the Trustee and any agent of the Company
and the Trustee shall treat as the Holder of such principal amount of
Outstanding Securities represented by a permanent global Security (i) in the
case of a permanent global Security in registered form, the Holder of such
permanent global Security in registered form, or (ii) in the case of a permanent
global Security in bearer form, the Person or Persons specified pursuant to
Section 301.

ARTICLE
THREE

THE
SECURITIES

Section 301. Amount
Unlimited; Issuable in Series.

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

13

The Securities may be issued
in one or more series. There shall be established in or pursuant to one or more
Board Resolutions, and set forth in an Officers’ Certificate, or established in
one or more indentures supplemental hereto,

(1) the title of the
Securities and the series in which such Securities shall be included;

(2) any limit upon the
aggregate principal amount of the Securities of such title or the Securities of
such 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 305, 306, 307, 906, 1107 or 1502 or the terms of such Securities);

(3) whether Securities of the
series are to be issuable as Registered Securities, Bearer Securities or both
and, if the Securities are to be issuable exclusively or alternatively as Bearer
Securities, whether the Bearer Securities are to be issuable with Coupons,
without Coupons or both, and any restrictions applicable to the offer, sale
delivery or conversion of the Bearer Securities and the terms, if any, upon
which Bearer Securities may be exchanged for Registered Securities and vice
versa; 

(4) whether any Securities of
the series are to be issuable initially or otherwise in global form and, if so,
(i) whether beneficial owners of interests in any such global Security may
exchange such interest for Securities of such series and of like tenor of any
authorized form and denomination and the circumstances under which any such
exchanges may occur, if other than in the manner specified in Section 306, (ii)
the name of the depository or the U.S. Depository, as the case may be, with
respect to any global Security and (iii) the manner in which interest payable on
a global Security will be paid; 

(5) the date as of which any
Bearer Securities of the series and any global Security representing Outstanding
Securities of the series shall be dated if other than the date of original
issuance of the first Security of the series to be issued; 

(6) if Securities of the
series are to be issuable as Bearer Securities, whether interest in respect of
any portion of a temporary Bearer Security in global form (representing all of
the Outstanding Bearer Securities of the series) payable in respect of an
Interest Payment Date prior to the exchange of such temporary Bearer Security
for definitive Securities of the series shall be paid to any clearing
organization with respect to the portion of such temporary Bearer Security held
for its account and, in such event, the terms and conditions (including any
certification requirements) upon which any such interest payment received by a
clearing organization will be credited to the Persons entitled to interest
payable on such Interest Payment Date; 

(7) the date or dates, or the
method, if any, by which such date or dates shall be determined, on which the
principal of such Securities is payable; 

(8) the rate or rates at which
such Securities shall bear interest, if any, or the method, if any, by which
such rate or rates are to be determined, the date or dates, if any, from which
such interest shall accrue or the method, if any, by which such date or dates
are to be determined, the Interest Payment Dates, if any, on which such interest
shall be payable and the Regular Record Date, if any, for the interest payable
on Registered Securities on any Interest Payment Date, whether and under what
circumstances Additional Amounts on such Securities or any of them shall be
payable, and the basis upon which interest shall be calculated if other than
that of a 360-day year of twelve 30-day months; 

(9) the place or places, if
any, where the principal of (and premium, if any) and interest (including
Additional Amounts), if any, on such Securities shall be payable, any Registered
Securities of the series may be surrendered for registration of transfer,
Securities of the series may be surrendered for exchange or conversion and
notices or demands to or upon the Company in respect of the Securities of the
series and this Indenture may be served; 

14

(10)
whether the Securities of the series or any of them are to be redeemable at the
option of the Company and, if so, the period or periods within which, the price
or prices at which and the other terms and conditions upon which such Securities
may be redeemed, in whole or in part, at the option of the Company; 

(11)
whether the Company is obligated to redeem, or purchase Securities of the series
or any of them pursuant to any sinking fund or at the option of any Holder
thereof and, if so, the period or periods within which, the price or prices at
which and the other terms and conditions upon which such Securities shall be
redeemed or purchased, in whole or in part, pursuant to such obligation, and any
provisions for the remarketing of the Securities of the series so redeemed or
purchased; 

(12)
the denominations in which Registered Securities of the series, if any, shall be
issuable if other than denominations of $1,000 and any integral multiple
thereof, and the denominations in which Bearer Securities of the series, if any,
shall be issuable if other than the denomination of $5,000; 

(13)
if other than the principal amount thereof, the portion of the principal amount
of the Securities of the series of any of them which shall be payable upon
declaration of acceleration of the Maturity thereof pursuant to Section 502 or
the method by which such portion is to be determined; 

(14)
if other than such coin or currency of the United States of America as at the
time of payment is legal tender for payment of public or private debts, the coin
or currency, composite currencies or currency unit or units in which payment of
the principal of (and premium, if any) or interest, if any, on or any Additional
Amounts in respect of the Securities of the series or any of them shall be
payable; 

(15)
if the principal of (and premium, if any) or interest, if any, on or any
Additional Amounts in respect of the Securities of the series or any of them are
to be payable, at the election of the Company or a Holder thereof, in a coin or
currency, composite currencies or currency unit or units other than that in
which the Securities of the series or any of them are stated to be payable, the
period or periods within which, and the terms and conditions upon which, such
election may be made; 

(16)
whether the amount of payments of principal of (and premium, if any) or interest
(including Additional Amounts), if any, on the Securities of the series may be
determined with reference to an index, formula or other method (which index,
formula or method may be based, without limitation, on one or more currencies,
currency units, composite currencies, commodities, equity indices or other
indices), and, if so, the terms and conditions upon which and the manner in
which such amounts shall be determined and paid or payable; 

(17)
whether the principal of (and premium, if any) or interest (including Additional
Amounts), if any, on the Securities of the series are to be payable, at the
election of the Company or any Holder thereof or otherwise, in a currency or
currencies, currency unit or units or composite currency or currencies other
than that in which such Securities or any of them are denominated or stated to
be payable, the period or periods within which, and the other terms and
conditions upon which, such election, if any, may be made, and the time and
manner of determining the exchange rate between the currency or currencies,
currency unit or units or composite currency or currencies in which such
Securities or any of them are denominated or stated to be payable and the
currency or currencies, currency unit or units or composite currency or
currencies in which such Securities or any of them are to be so payable;

(18)
any deletions from, modifications of or additions to the Events of Default or
covenants of the Company with respect to the Securities of the series or any of
them, whether or not such Events of Default or covenants are consistent with the
Events of Default or covenants set forth herein; 

(19)
the applicability, if any, of Section 403 to the Securities of the series and
any provisions in modification of, in addition to or in lieu of any of the
provisions of Section 403; 

(20)
if the Securities of the series or any of them are to be issued upon the
exercise of warrants, the time, manner and place for such Securities to be
authenticated and delivered; 

15

(21)
if the Securities of the series are to be issuable in definitive form (whether
upon original issue or upon exchange of a temporary Security of such series)
only upon receipt of certain certificates or other documents or satisfaction of
other conditions, then the form and terms of such certificates, documents or
conditions; 

(22)
if there is more than one Trustee, the identity of the Trustee and, if not the
Trustee, the identity of each Security Registrar, Paying Agent and/or
Authenticating Agent with respect to the Securities of the series; 

(23)
whether any of the Securities of a series shall be issued as Original Issue
Discount Securities; and 

(24)
any other terms of the Securities of the series or any of them. 

All
Securities of any one series and Coupons appertaining to Bearer Securities of
such series, if any, shall be substantially identical except as to denomination
and the rate or rates of interest, if any, and Stated Maturity, the date from
which interest, if any, shall accrue and except as may otherwise be provided by
the Company in or pursuant to one or more Board Resolutions and set forth in
such Officers’ Certificate or in any indenture or indentures supplemental hereto
pertaining to such series of Securities. All Securities of any one series need
not be issued at the same time and, unless otherwise so provided by the Company,
a series may be reopened for issuances of additional Securities of such
series.

If
any of the terms of the Securities of any series were established by action
taken by or pursuant to a Board Resolution, the Board Resolution shall be
delivered to the Trustee at or prior to the delivery of the Officers’
Certificate setting forth the terms of such series.

Section 302.
Denominations.

Unless otherwise established with respect to any Securities pursuant to
Section 301, the Registered Securities of each series, if any, denominated in
Dollars shall be issuable in registered form without coupons in denominations of
$1,000 and any integral multiple thereof, and the Bearer Securities of each
series, if any, denominated in Dollars shall be issuable in the denomination of
$1,000. Securities not denominated in Dollars shall be issuable in such
denominations as are established with respect to such Securities pursuant to
Section 301.

Section 303. Securities in
Foreign Countries

Whenever this Indenture provides for (i) any action by, or the
determination of any of the rights of, Holders of Securities of any series in
which not all of such Securities are denominated in the same currency, or (ii)
any distribution to Holders of Securities, in the absence of any provision to
the contrary in the form of Security of any particular series, any amount in
respect of any Security denominated in a currency other than United States
dollars shall be treated for any such action or distribution as that amount of
United States dollars that could be obtained for such amount on such reasonable
basis of exchange and as of the record date with respect to Registered
Securities of such series (if any) for such action, determination of rights or
distribution (or, if there shall be no applicable record date, such other date
reasonably proximate to the date of such action, determination of rights or
distribution) as the Company may specify in a written notice to the Trustee or,
in the absence of such written notice, as the Trustee may determine.

Section 304. Execution,
Authentication, Delivery and Dating.

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

Securities and Coupons 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.

16

At
any time and from time to time after the execution and delivery of this
Indenture, the Company may deliver Securities of any series, together with any
Coupons appertaining thereto, executed by the Company, to the Trustee for
authentication, and, provided that the Board Resolution or Resolutions and
Officers’ Certificate or supplemental indenture or indentures with respect to
such Securities referred to in Section 301 and a Company Order for the
authentication and delivery of such Securities, has been delivered to the
Trustee, the Trustee in accordance with the Company Order and subject to the
provisions hereof of such Securities shall authenticate and deliver such
Securities. In authenticating such Securities, and accepting the additional
responsibilities under this Indenture in relation to such Securities and any
Coupons appertaining thereto, the Trustee shall be entitled to receive, and
(subject to Sections 315(a) through 315(b) of the Trust Indenture Act) shall be
fully protected in relying upon,

(1)
an Opinion of Counsel stating, to the effect 

(a) that the form or forms and terms of such
Securities and Coupons, if any, have been established in conformity with the
provisions of this Indenture; 

(b) that all conditions precedent to the
authentication and delivery of such Securities and Coupons, if any, appertaining
thereto, have been complied with and that such Securities, and Coupons, when
completed by appropriate insertion and executed and delivered by the Company to
the Trustee for authentication pursuant to this Indenture, and 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 legally
valid and binding obligations of the Company, enforceable against the Company in
accordance with their terms, subject to bankruptcy, insolvency, reorganization,
moratorium, fraudulent transfer or other similar laws affecting the enforcement
of creditors’ rights generally, and subject to general principles of equity
(regardless of whether enforcement is sought in a proceeding in equity or at
law) and will entitle the Holders thereof to the benefits of the Indenture; such
Opinion of Counsel need express no opinion as to the availability of equitable
remedies; 

(c) that all laws and requirements in respect of
the execution and delivery by the Company of such Securities and Coupons, if
any, have been complied with; and 

(d) as to such other matters as the Trustee may
reasonably request; and 

(2)
an Officers’ Certificate stating that, to the best knowledge of the Persons
executing such certificate, no Event of Default with respect to any of the
Securities shall have occurred and be continuing. 

If
all the Securities of any series are not to be issued at one time, it shall not
be necessary to deliver an Opinion of Counsel and an Officers’ Certificate at
the time of issuance of each Security, but such opinion and certificate, with
appropriate modifications to cover future issuances, shall be delivered at or
before the time of issuance of the first Security of such series.

The
Trustee shall not be required to authenticate or to cause an Authenticating
Agent to authenticate any 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 or 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.

Each
Registered Security shall be dated the date of its authentication. Each Bearer
Security and any temporary Bearer Security in global form shall be dated as of
the date specified as contemplated by Section 301.

17

No
Security or Coupon 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 in
section 202 or 611 executed by or on behalf of the Trustee by the manual
signature of one of its authorized officers, and such certificate upon any
Security shall be conclusive evidence, and the only evidence, that such Security
has been duly authenticated and delivered hereunder. Except as permitted by
Section 307 or 308, the Trustee shall not authenticate and deliver any Bearer
Security unless all appurtenant Coupons for interest then matured have been
detached and cancelled.

Section 305. Temporary
Securities.

Pending the preparation of definitive Securities of any series, the
Company may execute and deliver to the Trustee and, upon Company Order the
Trustee shall authenticate and deliver, in the manner provided in Section 304,
temporary Securities of such series 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, in registered form or, if authorized, in bearer form with one or
more Coupons or without Coupons and with such appropriate insertions, omissions,
substitutions and other variations as the officers of the Company executing such
Securities may determine, as conclusively evidenced by their execution of such
Securities. In the case of Securities of any series, such temporary Securities
may be in global form.

Except in the case of temporary Securities in global form, which shall be
exchanged in accordance with the provisions thereof, if temporary Securities of
any series are issued, the Company shall cause definitive Securities of such
series to be prepared without unreasonable delay. After the preparation of
definitive Securities of any series, the temporary Securities of such series, if
any, shall be exchangeable upon request for definitive Securities of such series
containing identical terms and provisions upon surrender of the temporary
Securities of such series at an office or agency of the Company maintained for
such purpose pursuant to Section 1002, without charge to any Holder. Upon
surrender for cancellation of any one or more temporary Securities of any series
(accompanied by any unmatured Coupons appertaining thereto), the Company shall
execute and the Trustee shall authenticate and deliver in exchange therefor a
like principal amount of definitive Securities of authorized denominations of
the same series containing identical terms and provisions; PROVIDED, HOWEVER,
that no definitive Bearer Security, except as provided pursuant to Section 301,
shall be delivered in exchange for a temporary Registered Security; and
PROVIDED, FURTHER, that a definitive Bearer Security shall be delivered in
exchange for a temporary Bearer Security only in compliance with the conditions
set forth herein or therein. Unless otherwise specified as contemplated by
Section 301 with respect to a temporary global Security, until so exchanged the
temporary Securities of any series shall in all respects be entitled to the same
benefits under this Indenture as definitive Securities of such
series.

Section 306. Registration,
Transfer and Exchange.

With
respect to the Registered Securities of each series, if any, the Company shall
cause to be kept, at an office or agency of the Company maintained pursuant to
Section 1002, a register (each such register being herein sometimes referred to
as the “Security Register”) in which, subject to such reasonable regulations as
it may prescribe, the Company shall provide for the registration of the
Registered Securities of each series and of transfers of the Registered
Securities of such series. In the event that the Trustee shall not be the
Security Registrar, it shall have the right to examine the Security Register at
all reasonable times. [Southern First Bancshares, Inc.] is hereby initially
appointed as Security Registrar for each series of Securities. In the event that
[Southern First Bancshares, Inc.] shall cease to be Security Registrar with
respect to a series of Securities, the Trustee shall have the right to examine
the Security Register for such series at all reasonable times.

Upon
surrender for registration of transfer of any Registered Security of any series
at any office or agency of the Company maintained for such series pursuant to
Section 1002, the Company shall execute, and the Trustee shall authenticate and
deliver, in the name of the designated transferee or transferees, one or more
new Registered Securities of the same series of any authorized denominations, of
a like aggregate principal amount bearing a number not contemporaneously
outstanding and containing identical terms and provisions.

18

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

If
specified as contemplated by Section 301 with respect to Securities of any
series, at the option of the Holder, Bearer Securities of such series may be
exchanged for Registered Securities of such series containing identical terms
and provisions, of any authorized denominations and aggregate principal amount,
upon surrender of the Bearer Securities to be exchanged at any such office or
agency for such series, with all unmatured Coupons and all matured Coupons in
default thereto appertaining. If the Holder of a Bearer Security is unable to
produce any such unmatured Coupon or Coupons or matured Coupon or Coupons in
default, such exchange may be effected if the Bearer Securities are accompanied
by payment in funds acceptable to the Company and the Trustee in an amount equal
to the face amount of such missing Coupon or Coupons, or the surrender of such
missing Coupon or Coupons may be waived by the Company and the Trustee if there
is furnished to them such Security or indemnity as they may require to save each
of them and any Paying Agent harmless. If thereafter the Holder of such Security
shall surrender to any Paying Agent any such missing Coupon in respect of which
such a payment shall have been made, such Holder shall be entitled to receive
the amount of such payment; PROVIDED, HOWEVER, that, except as otherwise
provided in Section 1002, interest represented by Coupons shall be payable only
upon presentation and surrender of those Coupons at an office or agency for such
series located outside the United States. Notwithstanding the foregoing, in case
a Bearer Security of any series is surrendered at any such office or agency in
exchange for a Registered Security of such series and like tenor after the close
of business at such office or agency on (i) any Regular Record Date and before
the opening of business at such office or agency on the relevant Interest
Payment Date, or (ii) any Special Record Date and before the opening of business
at such office or agency on the related date for payment of Defaulted Interest,
such Bearer Security shall be surrendered without the Coupon relating to such
Interest Payment Date or proposed date of payment, as the case may be (or, if
such Coupon is so surrendered with such Bearer Security, such Coupon shall be
returned to the person so surrendering the Bearer Security), and interest or
Defaulted Interest, as the case may be, will not be payable on such Interest
Payment Date or proposed date for payment, as the case may be, in respect of the
Registered Security issued in exchange for such Bearer Security, but will be
payable only to the Holder of such Coupon when due in accordance with the
provisions of this Indenture.

If
specified as contemplated by Section 301 with respect to Securities of any
series, at the option of the Holder, Registered Securities of such series may be
exchanged for Bearer Securities upon such terms and conditions as may be
provided pursuant hereto with respect to such series.

Whenever any Securities are so surrendered for exchange as contemplated
by the immediately preceding two paragraphs, the Company shall execute, and the
Trustee shall authenticate and deliver, the Securities which the Holder making
the exchange is entitled to receive.

Notwithstanding the foregoing, except as otherwise specified as
contemplated by Section 301, any global Security of any series shall be
exchangeable for Securities of such series only if (i) the Securities Depository
is at any time unwilling or unable or ineligible to continue as Securities
Depository and a successor depository is not appointed by the Company within 90
days of the date the Company is so notified in writing, (ii) the Company
executes and delivers to the Trustee a Company Order to the effect that such
global Security shall be so exchangeable, or (iii) an Event of Default has
occurred and is continuing with respect to the Securities. If the beneficial
owners of interests in a global Security are entitled to exchange such interests
for Securities of such series and of like tenor and principal amount of any
authorized form and denomination, as specified as contemplated by Section 301,
then without unnecessary delay but in any event not later than the earliest date
on which such interests may be so exchanged, the Company shall deliver to the
Trustee definitive Securities of that series in aggregate principal amount equal
to the principal amount of such global Security, executed by the Company. On or
after the earliest date on which such interests may be so exchanged, such global
Security shall be surrendered from time to time by the U.S. Depository or such
other depository as shall be specified in the Company Order with respect
thereto, and in accordance with instructions given to the Trustee and the U.S.
Depository or such other depository, as the case may be (which instructions
shall be in writing but need not comply with Section 102 or be accompanied by an
Opinion of Counsel), as shall be specified in the Company Order with respect
thereto to the Trustee, as the Company’s agent for such purpose, to be
exchanged, in whole or in part, for definitive Securities of the same series
without charge. The Trustee shall authenticate and make available for delivery,
in exchange for each portion of such surrendered global Security, a like
aggregate principal amount of definitive Securities of the same series of
authorized denominations and of like tenor as the portion of such global
Security to be exchanged which (unless the Securities of such series are not
issuable both as Bearer Securities and as Registered Securities, in which case
the definitive Securities exchanged for the global Security shall be issuable
only in the form in which the Securities are issuable, as specified as
contemplated by Section 301) shall be in the form of Bearer Securities or
Registered Securities, or any combination thereof, as shall be specified by the
beneficial owner thereof; PROVIDED, HOWEVER, that no such exchanges may occur
during a period beginning at the opening of business 15 days before any
selection of Securities of such series to be redeemed and ending on the relevant
Redemption Date; and provided, further, that (unless otherwise specified as
contemplated by Section 301) no Bearer Security delivered in exchange for a
portion of a global Security shall be mailed or otherwise delivered to any
location in the United States. Promptly following any such exchange in part,
such global Security shall be returned by the Trustee to such Depository or the
U.S. Depository, as the case may be, or such other Depository or U.S. Depository
referred to above in accordance with the instructions of the Company referred to
above. If a Registered Security is issued in exchange for any portion of a
global Security after the close of business at the office or agency where such
exchange occurs on (i) any Regular Record Date and before the opening of
business at such office or agency on the relevant Interest Payment Date, or (ii)
any Special Record Date and before the opening of business at such office or
agency on the related proposed date for payment of interest or Defaulted
Interest, as the case may be, interest will not be payable on such Interest
Payment Date or proposed date for payment, as the case may be, in respect of
such Registered Security, but will be payable on such Interest Payment Date or
proposed date for payment, as the case may be, only to the Person to whom
interest in respect of such portion of such global Security is payable in
accordance with the provisions of this Indenture.

19

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

Every Registered Security presented or surrendered for registration of
transfer or for exchange, redemption or conversion shall (if so required by the
Company or the Security Registrar for such series of Security presented) be duly
endorsed, or be accompanied by a written instrument of transfer in form
satisfactory to the Company and such 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,
redemption or conversion of Securities, but the Company may require payment of a
sum sufficient to cover any tax or other governmental charge that may be imposed
in connection with any registration of transfer or exchange of Securities, other
than exchanges pursuant to Section 305, 906 or 1107 not involving any
transfer.

Except as otherwise specified as contemplated by Section 301, the Company
shall not be required (i) to issue, register the transfer of or exchange any
Securities of any series during a period beginning at the opening of business 15
days before the day of the selection for redemption of Securities of such series
under Section 1103 and ending at the close of business on the day of such
selection, or (ii) to register the transfer of or exchange any Registered
Security so selected for redemption in whole or in part, except in the case of
any Security to be redeemed in part, the portion thereof not to be redeemed, or
(iii) to exchange any Bearer Security so selected for redemption except, to the
extent provided with respect to such Security, that such a Bearer Security may
be exchanged for a Registered Security of that series, provided that such
Registered Security shall be immediately surrendered for redemption with written
instruction for payment consistent with the provisions of this Indenture or (iv)
to issue, register the transfer of or exchange any Security which, in accordance
with its terms specified as contemplated by Section 301, has been surrendered
for repayment at the option of the Holder, except the portion, if any, of such
Security not to be repaid.

Section 307. Mutilated,
Destroyed, Lost and Stolen Securities.

If
any mutilated Security or a Security with a mutilated Coupon appertaining to it
is surrendered to the Trustee, subject to the provisions of this Section 307,
the Company shall execute and the Trustee shall authenticate and deliver in
exchange therefor a new Security of the same series containing identical terms
and of like principal amount and bearing a number not contemporaneously
outstanding, with Coupons corresponding to the Coupons, if any, appertaining to
the surrendered Security.

20

If
there be delivered to the Company and to the Trustee (i) evidence to their
satisfaction of the destruction, loss or theft of any Security or Coupon, 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 or Coupon has been acquired by a bona
fide purchaser, the Company shall execute and upon its request the Trustee shall
authenticate and deliver, in exchange for or in lieu of any such mutilated,
destroyed, lost or stolen Security or in exchange for the Security to which a
destroyed, lost or stolen Coupon appertains with all appurtenant Coupons not
destroyed, lost or stolen, a new Security of the same series containing
identical terms and of like principal amount and bearing a number not
contemporaneously outstanding, with Coupons corresponding to the Coupons, if
any, appertaining to such destroyed, lost or stolen Security or to the Security
to which such destroyed, lost or stolen Coupon appertains.

Notwithstanding the foregoing provisions of this Section 307, in case any
such mutilated, destroyed, lost or stolen Security or Coupon 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 or Coupon; PROVIDED, HOWEVER, that
payment of principal of (and premium, if any) and any interest on Bearer
Securities shall, except as otherwise provided in Section 1002, be payable only
at an office or agency located outside the United States and, unless otherwise
specified as contemplated by Section 301, any interest on Bearer Securities
shall be payable only upon presentation and surrender of the Coupons
appertaining thereto.

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, with its Coupons, if any, issued
pursuant to this Section in lieu of any destroyed, lost or stolen Security and
its Coupons, if any, or the destroyed, lost or stolen Coupon shall constitute a
separate obligation of the Company, whether or not the destroyed, lost or stolen
Security and its Coupons, if any, or the destroyed, lost or stolen Coupon 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 and their Coupons, if any.

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 or Coupons.

Section 308. Payment of
Interest; Interest Rights Preserved.

Unless otherwise specified as contemplated by Section 301, interest on
any Registered 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 as of
the close of business on the Regular Record Date for such interest. In case a
Bearer Security of any series is surrendered in exchange for a Registered
Security of such series after the close of business (at an office or agency in a
Place of Payment for such series) on any Regular Record Date and before the
opening of business (at such office or agency) on the next succeeding Interest
Payment Date, such Bearer Security shall be surrendered without the Coupon
relating to such Interest Payment Date and interest will not be payable on such
Interest Payment Date in respect of the Registered Security issued in exchange
of such Bearer Security, but will be payable only to the Holder of such Coupon
when due in accordance with the provisions of this Indenture.

21

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

(1)
The Company may elect to make payment of any Defaulted Interest to the Persons
in whose names the Registered Securities affected (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 such Registered
Security 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 on or prior to the
date of the proposed payment. Money will 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 such Registered Securities 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 mailed as aforesaid,
such Defaulted Interest shall be paid to the Persons in whose names such
Registered Securities (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). In case a Bearer
Security of any series is surrendered at the office or agency in a Place of
Payment for such series in exchange for a Registered Security of such series
after the close of business at such office or agency on any Special Record Date
and before the opening of business at such office or agency on the related
proposed date for payment of Defaulted Interest, such Bearer Security shall be
surrendered without the Coupon relating to such proposed date of payment and
Defaulted Interest will not be payable on such proposed date of payment in
respect of the Registered Security issued in exchange for such Bearer Security,
but will be payable only to the Holder of such Coupon when due in accordance
with the provisions of this Indenture. 

(2) The Company may make payment of any Defaulted Interest 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 payment shall be deemed
practicable by the Trustee. 

At
the option of the Company, interest on Registered Securities of any series that
bear interest may be paid by mailing a check to the address of the person
entitled thereto as such address shall appear in the Security
Register.

Subject to the foregoing provisions of this Section and Section 306, each
Security delivered under this Indenture upon registration of transfer of or in
exchange for or in lieu of any other Security shall carry the rights to interest
accrued and unpaid, and to accrue, which were carried by such other
Security.

Section 309. Persons Deemed
Owners.

Prior to due presentment of a
Registered 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
Registered Security is registered as the owner of such Registered Security for
the purpose of receiving payment of principal of (and premium, if any), and
(subject to Sections 306 and 308) interest on or any Additional Amounts with
respect to, such Registered Security and for all other purposes whatsoever,
whether or not any payment with respect to such Registered 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.

The Company, the Trustee and
any agent of the Company or the Trustee may treat the bearer of any Bearer
Security and the bearer of any Coupon as the absolute owner of such Security or
Coupon for the purpose of receiving payment thereof or on account thereof and
for all other purposes whatsoever, whether or not any payment with respect to
such Security or Coupon 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.

22

Section 310.
Cancellation.

All
Securities and Coupons surrendered for payment, redemption, registration of
transfer or exchange or for credit against any sinking fund payment shall, if
surrendered to any Person other than the Trustee or the Security Registrar, be
delivered to the Trustee or the Security Registrar, and any such Securities and
Coupons and Securities and Coupons surrendered directly to the Trustee or the
Security Registrar for any such purpose shall be promptly cancelled by the
Trustee or the Security Registrar, as the case may be. The Company may at any
time deliver to the Trustee or the Security Registrar for cancellation any
Securities previously authenticated and delivered hereunder which the Company
may have acquired in any manner whatsoever, and all Securities so delivered
shall be promptly cancelled by the Trustee or the Security Registrar, as the
case may be. 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 or as otherwise specified as contemplated by Section
301. All cancelled Securities and Coupons held by the Trustee or the Security
Registrar shall be returned to the Company by the Trustee or the Security
Registrar, as the case may be, upon a Company Order. The Trustee shall promptly
notify the Company of all cancelled Securities.

Section 311. Computation of
Interest.

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

Section 312. 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
change in the “CUSIP” numbers.

ARTICLE
FOUR

SATISFACTION AND
DISCHARGE

Section 401. Satisfaction
and Discharge of Indenture.

Upon
the direction of the Company by a Company Order, this Indenture shall cease to
be of further effect with respect to any series of Securities specified in such
Company Order (except as to any surviving rights of registration of transfer or
exchange of Securities of such series herein expressly provided for and any
right to receive Additional Amounts, as provided in Section 1004), and the
Trustee, on receipt of a Company Order, at the expense of the Company, shall
execute proper instruments acknowledging satisfaction and discharge of this
Indenture as to such series, when

(1)
either 

(A)
all Securities of such series theretofore authenticated and delivered and all
Coupons appertaining thereto (other than (i) Coupons appertaining to Bearer
Securities of such series surrendered for exchange for Registered Securities of
such series and maturing after such exchange, whose surrender is not required or
has been waived as provided in Section 306, (ii) Securities and Coupons of such
series which have been destroyed, lost or stolen and which have been replaced or
paid as provided in Section 307, (iii) Coupons appertaining to Securities of
such series called for redemption and maturing after the relevant Redemption
Date, whose surrender has been waived as provided in Section 1107, and (iv)
Securities and Coupons of such series for whose payment money has theretofore
been deposited in trust or segregated and held in trust by the Company and
thereafter repaid to the Company or discharged from such trust, as provided in
Section 1003) have been delivered to the Trustee for cancellation; or

23

(B)
all Securities of such series and, in the case of (i) or (ii) below, any such
Coupons appertaining thereto 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 and such Securities are not convertible into other
Securities, or 

(iii) if redeemable at the option of the Company,
such Securities are not convertible into other Securities and 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, lawful money of the United States Government
Obligations which through the payment of interest and principal or other amounts
in respect thereof in accordance with their terms will provide not later than
the opening of business on the due dates of any payment of principal (and
premium, if any) and interest, or any Additional Amounts with respect thereto,
or a combination thereof, in an amount sufficient to pay and discharge the
entire indebtedness on such Securities and Coupons not theretofore delivered to
the Trustee for cancellation, for principal (and premium, if any) and interest,
or any Additional Amounts with respect thereto, to the date of such deposit (in
the case of Securities which have become due and payable) or to the Stated
Maturity or Redemption Date, as the case may be; 

(2) the Company has paid or caused to be paid all
other sums payable hereunder by the Company; and 

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

In
the event there are two or more Trustees hereunder, then the effectiveness of
any such instrument shall be conditioned upon receipt of such instruments from
all Trustees hereunder. 

Notwithstanding the satisfaction and discharge of this Indenture, the
obligations of the Company to the Trustee under Section 606 and, if money shall
have been deposited with the Trustee pursuant to subclause (B) of Clause (1) of
this Section, the obligations of the Trustee under Section 402 and the last
paragraph of Section 1003 shall survive such satisfaction and
discharge.

Section 402. Application of
Trust Money.

Subject to the provisions of the last paragraph of Section 1003, all
money deposited with the Trustee pursuant to Section 401 or this section 402
shall be held in trust and applied by it, in accordance with the provisions of
the Securities, the Coupons 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 any interest or any Additional Amounts 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.

All
monies deposited with the Trustee pursuant to Section 401 (and held by it or any
Paying Agent) for the payment of Securities subsequently converted shall be
returned to the Company upon Company Request.

24

Section 403. Satisfaction,
Discharge and Defeasance of Securities of Any Series.

If
pursuant to Section 301 provision is made for defeasance of Securities of any
series pursuant to Section 403, the Company shall be deemed to have paid and
discharged the entire indebtedness on all the Outstanding Securities of such
series and the Trustee, at the expense of the Company, shall execute proper
instruments acknowledging satisfaction and discharge of such indebtedness,
when

(1) either 

(A) with respect to all Outstanding Securities of
such series and any Coupons appertaining thereto, 

(i) the Company has deposited or caused to be
deposited with the Trustee, as trust funds in trust for such purpose, an amount
sufficient to pay and discharge the entire indebtedness on all Outstanding
Securities of such series for principal (and premium, if any), any Additional
Amounts, and interest to the Stated Maturity or any Redemption Date as
contemplated by the penultimate paragraph of this Section 403, as the case may
be; or 

(ii) with respect to any Series of Securities
which are denominated in United States dollars, the Company has deposited or
caused to be deposited with the Trustee, as obligations in trust for such
purpose, such amount of direct obligations of, or obligations the timely payment
of the principal of and interest on which are fully guaranteed by, the United
States of America and which are not callable at the option of the issuer thereof
as will, together with the income to accrue thereon without consideration of any
reinvestment thereof, be sufficient to pay and discharge the entire indebtedness
on all Outstanding Securities of such series for principal (and premium, if
any), any Additional Amounts, and interest to the stated Maturity or any
Redemption Date as contemplated by the penultimate paragraph of this Section
403; or 

(B)
the Company has properly fulfilled such other means of satisfaction and
discharge as is specified, as contemplated by Section 301, to be applicable to
the Securities of such series; and 

(3)
the Company has delivered to the Trustee a certificate signed by a nationally
recognized firm of Independent Public Accountants certifying as to the
sufficiency of the amounts deposited pursuant to subsections (A) (i) or (ii) of
this Section for payment of the principal (and premium, if any) and interest on
the dates such payments are due, an Officers’ Certificate and an Opinion of
Counsel, each such Certificate and opinion stating that no Event of Default or
event which with notice or lapse of time or both would become an Event of
Default with respect to such Securities shall have occurred and all conditions
precedent herein provided for relating to the satisfaction and discharge of the
entire indebtedness on all Outstanding Securities of any such series have been
complied with; and 

(4)
the Company has delivered to the Trustee 

(A)
a ruling from the Internal Revenue Service or an opinion of independent counsel
that the holders of the Securities of such series will not recognize income,
gain or loss for Federal income tax purposes as a result of such deposit,
defeasance and discharge and will be subject to Federal income tax on the same
amount and in the same manner and at the same times, as would have been the case
if such deposit, defeasance and discharge had not occurred; and 

(B)
if the Securities of such series are then listed on the Nasdaq Global Market, an
Opinion of Counsel that the Securities of such series will not be delisted as a
result of the exercise of this option. 

Any
deposits with the Trustee referred to in subsection (1) (A) of this Section
shall be irrevocable and shall be made under the terms of an escrow trust
agreement in form and substance satisfactory to the Trustee. If any Outstanding
Securities of such series are to be redeemed prior to their Stated Maturity,
whether pursuant to any optional redemption or repayment provisions or in
accordance with any mandatory sinking fund requirement, the Company shall make
such arrangements as are satisfactory to the Trustee for the giving of notice of
redemption by the Trustee in the name, and at the expense, of the
Company.

Upon
the satisfaction of the conditions set forth in this Section 403 with respect to
all the Outstanding Securities of any series, the terms and conditions of such
series, including the terms and conditions with respect thereto set forth in
this Indenture, other than the provisions of Sections 306, 307, and 1002, other
than the right of Holders of Securities and any Coupons of such series to
receive, from the trust fund described in this Section, payment of the principal
(and premium, if any) of, the interest on or any Additional Amounts with respect
to such Securities and Coupons (if any) appertaining thereto when such payments
are due, other than any right of conversion of such Securities and the rights,
powers, duties and immunities of the Trustee hereunder, shall no longer be
binding upon, or applicable to, the Company except those responsibilities and
obligations which by the terms of the Indenture survive the termination of the
Indenture; PROVIDED that the Company shall not be discharged from any payment
obligations in respect of Securities of such series which are deemed not to be
Outstanding under clause (iii) of the definition thereof if such obligations
continue to be valid obligations of the Company under applicable law.

25

ARTICLE
FIVE

REMEDIES

Section 501. Events of
Default.

“Event of Default”, wherever used herein with respect to Securities of
any series, means any one of the following events (whatever the reason for such
Event of Default and whether it shall be voluntary or be effected by operation
of law 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 or any Additional Amounts payable in
respect of any Security of such series when such interest becomes or Additional
Amounts become due and payable, and continuance of such default for a period of
30 days; or 

(2)
default in the payment of the principal of (and premium, if any, on) any
Security of that series when it becomes due and payable at Maturity; or

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

(4)
default in the performance, or breach, of any covenant or warranty of the
Company in this Indenture or the
Securities (other than a covenant or warranty a default in the performance or
the breach of which is elsewhere in this Section specifically dealt with or
which has been expressly included in this Indenture solely for the benefit of a
series of Securities other than such 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)
if any event of default as defined in any mortgage, indenture or instrument
under which there may be issued, or by which there may be secured or evidenced,
any indebtedness of the Company or the Subsidiary Bank for money borrowed,
whether such indebtedness now exists or shall hereafter be created, shall happen
and shall result in such indebtedness in principal amount in excess of
$25,000,000 becoming or being declared due and payable prior to the date on
which it would otherwise become due and payable, and such acceleration shall not
be rescinded or annulled, or such indebtedness shall not have been discharged,
within a period of 30 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 the Holders of at least 25% in principal amount of the outstanding Securities
of such series, a written notice specifying such event of default and requiring
the Company to cause such acceleration to be rescinded or annulled or to cause
such indebtedness to be discharged and stating that such notice is a “Notice of
Default” hereunder; or 

(6)
a court having jurisdiction in the premises shall enter a decree or order for
relief in respect of the Company or the Subsidiary Bank in an involuntary case
under any applicable bankruptcy, insolvency or other similar law now or
hereafter in effect, and adjudging it a bankrupt or insolvent or appointing a
receiver, liquidator, assignee, custodian, trustee, sequestrator (or similar
official) of the Company or the Subsidiary Bank or for any substantial part of its
property, or ordering the winding-up or liquidation of its affairs, and such
decree or order shall remain unstayed and in effect for a period of 60
consecutive days; or 

26

(7) the Company or the
Subsidiary Bank shall commence a voluntary case under any applicable bankruptcy,
insolvency or other similar law now or hereafter in effect, or shall consent to
the entry of an order for relief in any involuntary case under any such law, or
shall consent to the appointment of or taking possession by a receiver,
liquidator, assignee, trustee, custodian, sequestrator (or similar official) of
the Company or the Subsidiary Bank or for any substantial part of its property,
or shall make any general assignment for the benefit of creditors, or shall fail
generally to pay its debts as they become due or shall take any corporate action
in furtherance of any of the foregoing; or 

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

Section 502. Acceleration
of Maturity; Rescission and Annulment. 

If an Event of Default with
respect to Securities of any series at the time outstanding occurs and is
continuing, then the Trustee or the Holders of not less than 25% in principal
amount of the Outstanding Securities of that series may declare the principal of
all the Securities of that series, or such lesser amount as may be provided for
in 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 the Holders), and upon
any such declaration such principal or such lesser amount shall become
immediately due and payable.

At any time after such a
declaration of acceleration with respect to Securities of any series has been
made and before a judgment or decree for payment of the money due has been
obtained by the Trustee as hereinafter in this Article provided, the Holders of
not less than a majority in principal amount of the Outstanding Securities of
that series, by written notice to the Company and the Trustee, may rescind and
annul such declaration and its consequences if

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

(A) all overdue installments
of interest on and any Additional Amounts payable in respect of all Securities
of such series, 

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

(C) to the extent that payment
of such interest is lawful, interest upon overdue installments of interest or
any Additional Amounts at the rate or rates borne by or provided for in such
Securities, and 

(D) all sums paid or advanced
by the Trustee hereunder and the reasonable compensation, expenses,
disbursements and advances of the Trustee, its agents and counsel as provided in
Section 606 hereof; and 

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

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

27

Section 503. Collection of
Indebtedness and Suits For Enforcement By Trustee.

The Company covenants that
if

(1) default is made in the
payment of any installment of interest on or any Additional Amounts payable in
respect of any Security when such interest or Additional Amounts shall have
become due and payable and such default continues for a period of 30 days, or

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

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

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

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

Section 504. Trustee May
File Proofs of Claim.

In case of the pendency of any
receivership, insolvency, liquidation, bankruptcy, reorganization, arrangement,
adjustment, composition or other judicial proceeding relative to the Company or
any other obligor upon the Securities or the property of the Company or of such
other obligor or their creditors, the Trustee (irrespective of whether the
principal of the Securities shall then be due and payable as therein expressed
or by declaration or otherwise and irrespective of whether the Trustee shall
have made any demand on the Company for the payment of any overdue principal or
interest) shall be entitled and empowered, by intervention in such proceeding or
otherwise,

(1) to file and prove a claim
for the whole amount or such lesser amount as may be provided for in the
Securities of such series, of principal (and premium, if any) and interest and
any Additional Amounts owing and unpaid in respect of the Securities and any
Coupons appertaining thereto and to file such other papers or documents as may
be necessary or advisable in order to have the claims of the Trustee (including
any claim for the reasonable compensation, expenses, disbursements and advances
of the Trustee, its agents or counsel) and of the Holders allowed in such
judicial proceeding, and 

(2) 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 of Securities or Coupons 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 of Securities or Coupons, 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 606. 

28

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

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

All rights of action and
claims under this Indenture or any of the Securities or coupons may be
prosecuted and enforced by the Trustee without the possession of any of the
Securities or Coupons 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 or judgment, after
provision for the payment of the reasonable compensation, expenses,
disbursements and advances of the Trustee, its agents and counsel, shall be for
the ratable benefit of the Holders of the Security and Coupon in respect of
which such judgment has been recovered.

Section 506. Application of
Money Collected.

Any money collected by the
Trustee pursuant to this Article shall be applied in the following order, at the
date or dates fixed by the Trustee and, in case of the distribution of such
money on account of principal (and premium, if any), interest or any Additional
Amounts, upon presentation of the Securities or Coupons, or both, as the case
may be, 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 and any predecessor Trustee under Section 606;
      

				 
		SECOND:
      
		
      To the payment of the
      amounts then due and unpaid upon the Securities and Coupons for principal
      (and premium, if any) and interest or any Additional Amounts payable 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 aggregate amounts due and payable on such Securities and Coupons
      for principal (and premium, if any), interest or any Additional Amounts,
      respectively; 

				 
		THIRD:
		

The balance, if any, to the
Company. 

Section 507. Limitation on
Suits.

No Holder of any Security of
any series or any related Coupons 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 such 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 indemnity reasonably satisfactory to the Trustee 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 

29

(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 such 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 or any
Security to affect, disturb or prejudice the rights of any other such Holders or
Holders of Securities of any other series, or to obtain or to seek to obtain
priority or preference over any other Holders or to enforce any right under this
Indenture, except in the manner herein provided and for the equal and ratable
benefit of all such Holders. 

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

Notwithstanding any other
provision in this Indenture, the Holder of any Security or coupon shall have the
right, which is absolute and unconditional, to receive payment of the principal
of (and premium, if any) and (subject to Sections 306 and 308) interest on or
any Additional Amounts in respect of such Security or payment of such Coupon on
the respective Stated Maturity or Maturities specified in such Security or
Coupon (or, in the case of redemption, on the Redemption Date) and to institute
suit for the enforcement of any such payment, and such right shall not be
impaired without the consent of such Holder.

Section 509. Restoration of
Rights and Remedies.

If the Trustee or any Holder
of a Security or Coupon 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 the Company, the Trustee and each such
Holder shall, subject to any determination in such proceeding, be restored
severally and respectively to their former positions hereunder, and thereafter
all rights and remedies of the Trustee and each such Holder shall continue as
though no such proceeding had been instituted.

Section 510. Rights and
Remedies Cumulative.

Except as otherwise provided
with respect to the replacement or payment of mutilated, destroyed, lost or
stolen Securities or Coupons in the last paragraph of Section 307, no right or
remedy herein conferred upon or reserved to the Trustee or to the Holders of a
Security or Coupon is intended to be exclusive of any other right or remedy, and
every right and remedy, to the extent permitted by law, shall be cumulative and
in addition to every other right and remedy given hereunder or now or hereafter
existing at law or in equity or otherwise. The assertion or employment of any
right or remedy hereunder, or otherwise, shall not prevent the concurrent
assertion or employment of any other appropriate right or remedy.

Section 511. Delay or
Omission Not Waiver.

No delay or omission of the
Trustee or of any Holder of any Security or coupon 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 of Securities or Coupons may be exercised from time to time, and as
often as may be deemed expedient, by the Trustee or by the Holders of Securities
or Coupons, as the case may be.

30

Section 512. Control By
Holders.

The Holders of a majority in
principal amount of the Outstanding Securities of any series shall have the
right to direct the time, method and place of conducting any proceeding for any
remedy available to the Trustee or exercising any trust or power conferred on
the Trustee with respect to the Securities of such series and any Coupons
appertaining thereto, 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) such direction is not
unduly prejudicial to the rights of other Holders of Securities of such series.

Section 513. Waiver of Past
Defaults.

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

(1) in the payment of the
principal of (and premium, if any) or interest on or Additional Amounts payable
in respect of any Security of such series or any Coupons appertaining thereto,
or 

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

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

Section 514. Waiver of Stay
or Extension Laws.

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

ARTICLE
SIX

THE
TRUSTEE

Section 601. Notice of
Defaults.

Within 90 days after the
occurrence of any default hereunder with respect to the Securities of any
series, the Trustee shall transmit to the Holders in the manner and to the
extent provided in Section 313(c) of the Trust Indenture Act, notice of such
default hereunder known to a Responsible Officer of the Trustee, unless such
default shall have been cured or waived; PROVIDED, HOWEVER, that, except in the
case of a default in the payment of the principal of (or premium, if any) or
interest on, or any Additional Amounts with respect to, any Security of such
series or in the payment of any sinking fund installment with respect to
Securities of such series, the Trustee shall be protected in withholding such
notice if and so long as the board of directors, the executive committee or a
trust committee of directors and/or Responsible Officers of the Trustee in good
faith determine that the withholding of such notice is in the interests of the
Holders of Securities and Coupons of such series; and PROVIDED further, that in
the case of default of the character specified in Section 501(4) with respect to
Securities of such series, no such notice to Holders shall be given until at
least 60 days after the occurrence thereof. For the purpose of this Section, the
term “default” means any event which is, or after notice or lapse of time or
both would become, an Event of Default, with respect to Securities of such
series.

31

Section 602. Certain Rights
of Trustee.

Subject to the provisions of
Sections 315(a) through 315(d) of the Trust Indenture Act:

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

(2) any request or direction
of the Company mentioned herein shall be sufficiently evidenced by a Company
Request or a Company Order (other than delivery of any Security, together with
any Coupons appertaining thereto to the Trustee for authentication and delivery
pursuant to Section 304 which shall be sufficiently evidenced as provided
therein) and any resolution of the Board of Directors may be sufficiently
evidenced by a Board Resolution or Board Resolutions; 

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

(4) 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 in respect of
any action taken, suffered or omitted by it hereunder in good faith and in
reliance thereon; 

(5) 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 of Securities of any
series or any Coupons appertaining thereto pursuant to 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 might be
incurred by it in compliance with such request or direction; 

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

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

(8) the Trustee shall not be
liable for any action taken, suffered, omitted to be taken by it in good faith
and reasonably believed by it to be authorized or within the discretion or
rights or powers conferred upon it by this Indenture; 

(9) the Trustee shall not be
deemed to have knowledge or notice of any default or 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 or Event of Default
is received by the Trustee at the Corporate Trust Office of the Trustee, and
such notice references the Securities and this Indenture; and 

(10) 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
agent, custodian and other Person employed to act hereunder. 

32

Section 603. Not
Responsible For Recitals or Issuance of Securities.

The recitals contained herein
and in the Securities, except the Trustee’s certificate of authentication, and
in any coupons shall be taken as the statements of the Company and neither the
Trustee nor any Authenticating Agent assumes responsibility for their
correctness. The Trustee makes no representations as to the validity or
sufficiency of this Indenture or of the Securities or Coupons, except that the
Trustee represents that it is duly authorized to execute and deliver this
Indenture, authenticate the Securities and perform its obligations hereunder and
that the statements made by it in a Statement of Eligibility and Qualification
on Form T-l supplied to the Company are true and accurate, subject to the
qualifications set forth therein. The Trustee or any Authenticating Agent shall
not be accountable for the use or application by the Company of Securities or
the proceeds thereof.

Section 604. May Hold
Securities.

The Trustee, any
Authenticating Agent, any Paying Agent, any Security Registrar or any other
Person that may be an agent of the Trustee or the Company, in its individual or
any other capacity, may become the owner or pledgee of Securities and Coupons
and, subject to Sections 310(b) and 311 of the Trust Indenture Act, may
otherwise deal with the Company with the same rights it would have if it were
not Trustee, Authenticating Agent, Paying Agent, Security Registrar or such
other Person.

Section 605. Money Held In
Trust.

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

Section 606. Compensation
and Reimbursement.

The Company agrees

(1) to pay to the Trustee from
time to time such compensation for all services rendered by it hereunder as
shall be mutually agreed upon by the Company and the Trustee in writing (which
compensation shall not be limited by any provision of law in regard to the
compensation of a trustee of an express trust); 

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

(3) to indemnify each of the
Trustee and any predecessor Trustee and its agents for, and to hold them
harmless against, any loss, liability, claim, damage or expense including taxes
(other than taxes based upon, measured by or determined by the income of the
Trustee) incurred without negligence or bad faith on their part, arising out of
or in connection with the acceptance or administration of the trust or trusts
hereunder, including the costs and expenses of defending themselves against any
claim or liability in connection with the exercise or performance of any of
their powers or duties hereunder. 

As Security for the
performance of the obligations of the Company under this Section, the Trustee
shall have a lien prior to the Securities of any series upon all property and
funds held or collected by the Trustee as such, except funds held in trust for
the payment of principal of (or premium, if any) or interest on Securities. When
the Trustee incurs expenses or renders services after an Event of Default
occurs, the expenses and compensation for the services of the Trustee are
intended to constitute expenses of administration under any bankruptcy law or
any similar federal or state law for the relief of debtors.

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

33

Section 607. Corporate
Trustee Required; Eligibility; Conflicting Interests.

There shall at all times be a
Trustee hereunder that is a corporation permitted by Section 310(a) (1) and (5)
of the Trust Indenture Act to act as trustee under the Trust Indenture Act and
that has a combined capital and surplus (computed in accordance with Section
310(a) (2) of the Trust Indenture Act) of at least $50,000,000. If at any time
the Trustee shall cease to be eligible in accordance with the provisions of this
Section, it shall resign immediately in the manner and with the effect
hereinafter specified in this Article. If the Trustee has or shall acquire any
conflicting interest, as defined in Section 310(b) of the Trust Indenture Act,
with respect to the Securities of any series, the Trustee shall take such action
as is required pursuant to said Section 310 (b).

Section 608. Resignation
and Removal; Appointment of Successor.

(a) No resignation or removal
of the Trustee and no appointment of a successor Trustee pursuant to this
Article shall become effective until the acceptance of appointment by the
successor Trustee pursuant to Section 609.

(b) The Trustee may resign at
any time with respect to the Securities of one or more series by giving written
notice thereof to the Company. If the instrument of acceptance by a successor
Trustee required by Section 609 shall not have been delivered to the Trustee
within 30 days after the giving of such notice of resignation, the resigning
Trustee may petition, at the expense of the Company, any court of competent
jurisdiction for the appointment of a successor Trustee with respect to such
series.

(c) The Trustee may be removed
at any time with respect to the Securities of any series by Act of the Holders
of a majority in principal amount of the Outstanding Securities of such series,
delivered to the Trustee and the Company. If an instrument of acceptance by a
successor Trustee shall not have been delivered to the Trustee within 30 days
after the giving of such notice of removal, the Trustee being removed may
petition, at the expense of the Company, any court of competent jurisdiction for
the appointment of a successor Trustee with respect to the Securities of such
series.

(d) If at any time:

(1) the Trustee shall fail to
comply with the obligations imposed upon it under Section 310(b) of the Trust
Indenture Act after written request therefor by the Company or by any Holder of
a Security who has been a bona fide Holder of a Security for at least six
months, or 

(2) the Trustee shall cease to
be eligible under Section 607 and shall fail to resign after written request
therefor by the Company or by any such Holder of a Security, or 

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

then, in any such case, (a)
the Company, by or pursuant to Board Resolution, may remove the Trustee with
respect to all Securities, or (b) subject to Section 315(c) of the Trust
Indenture Act any Holder of a Security who has been a bona fide Holder of a
Security of any series for at least six months may, on behalf of himself and all
others similarly situated, petition any court of competent jurisdiction for the
removal of the Trustee with respect to all Securities of such series and the
appointment of a successor Trustee or Trustees. 

34

(e) If the Trustee shall
resign, be removed or become incapable of acting, or if a vacancy shall occur in
the office of Trustee for any cause, with respect to the Securities of one or
more series, the Company, by or pursuant to Board Resolutions, shall promptly
appoint a successor Trustee or Trustees with respect to the Securities of that
or those series (it being understood that any such successor Trustee may be
appointed with respect to the Securities of one or more or all of such series
and that at any time there shall be only one Trustee with respect to the
Securities of any particular series) and shall comply with the applicable
requirements of Section 609. If, within one year after such resignation, removal
or incapability, or the occurrence of such vacancy, a successor Trustee with
respect to the Securities of any series shall be appointed by Act of the Holders
of a majority in principal amount of the Outstanding Securities of such series
delivered to the Company and the retiring Trustee, the successor Trustee so
appointed shall, forthwith upon its acceptance of such appointment in accordance
with the applicable requirements of Section 609, become the successor Trustee
with respect to the Securities of such series and to that extent supersede the
successor Trustee appointed by the Company. If no successor Trustee with respect
to the Securities of any series shall have been so appointed by the Company or
the Holders of Securities and accepted appointment in the manner required by
Section 609, any Holder of a Security who has been a bona fide Holder of a
Security of such series for at least six months may, on behalf of himself and
all others similarly situated, petition any court of competent jurisdiction for
the appointment of a successor Trustee with respect to the Securities of such
series.

(f) The Company shall give
notice of each resignation and each removal of the Trustee with respect to the
Securities of any series and each appointment of a successor Trustee with
respect to the Securities of any series by mailing written notice of such event
by first-class mail, postage prepaid, to the Holders of Registered Securities,
if any, of such series as their names and addresses appear in the Security
Register and, if Securities of such series are issued as Bearer Securities, by
publishing notice of such event once in an Authorized Newspaper in each Place of
Payment located outside the United States. Each notice shall include the name of
the successor Trustee with respect to the Securities of such series and the
address of its Corporate Trust Office.

Section 609. Acceptance of
Appointment By Successor.

(a) In case of the appointment
hereunder of a successor Trustee with respect to all Securities, every such
successor Trustee so appointed shall execute, acknowledge and deliver to the
Company and the retiring Trustee an instrument accepting such appointment, and
thereupon the resignation or removal of the retiring Trustee shall become
effective and such successor Trustee, without any further act, deed or
conveyance, shall become vested with all the rights, powers, trusts and duties
of the retiring Trustee; but, on the request of the Company and/or the successor
Trustee, such retiring Trustee shall, upon payment of its charges, execute and
deliver an instrument transferring to such successor Trustee all the rights,
powers and trusts of the retiring Trustee and shall duly assign, transfer and
deliver to such successor Trustee all property and money held by such retiring
Trustee hereunder, subject nevertheless to its claim, if any, provided for in
Section 606.

(b) In case of the appointment
hereunder of a successor Trustee with respect to the Securities of one or more
(but not all) series, the Company, the retiring Trustee and each successor
Trustee with respect to the Securities of one or more series shall execute and
deliver an indenture supplemental hereto wherein each successor Trustee shall
accept such appointment and which (1) shall contain such provisions as shall be
necessary or desirable to transfer and confirm to, and to vest in, each
successor Trustee all the rights, powers, trusts and duties of the retiring
Trustee with respect to the Securities of that or those series to which the
appointment of such successor Trustee relates, (2) if the retiring Trustee is
not retiring with respect to all Securities, shall contain such provisions as
shall be deemed necessary or desirable to confirm that all the rights, powers,
trusts and duties of the retiring Trustee with respect to the Securities of that
or those series as to which the retiring Trustee is not retiring shall continue
to be vested in the retiring Trustee, and (3) shall add to or change any of the
provisions of this Indenture as shall be necessary to provide for or facilitate
the administration of the trusts hereunder by more than one Trustee, it being
understood that nothing herein or in such supplemental indenture shall
constitute such Trustees co-trustees of the same trust, that each such Trustee
shall be trustee of a trust or trusts hereunder separate and apart from any
trust or trusts hereunder administered by any other such Trustee and that no
Trustee shall be responsible for any notice given to, or received by, or any act
or failure to act on the part of any other Trustee hereunder, and upon the
execution and delivery of such supplemental indenture the resignation or removal
of the retiring Trustee shall become effective to the extent provided therein,
such retiring Trustee shall with respect to the Securities of that or those
series to which the appointment of such successor Trustee relates have no
further responsibility for the exercise of rights and powers or for the
performance of the duties and obligations vested in the Trustee under this
Indenture other than as hereinafter expressly set forth, and each such successor
Trustee without any further act, deed or conveyance, shall become vested with
all the rights, powers, trusts and duties of the retiring Trustee with respect
to the Securities of that or those series to which the appointment of such
successor Trustee relates; but, on request of the Company or any successor
Trustee, such retiring Trustee shall duly assign, transfer and deliver to such
successor Trustee, to the extent contemplated by such supplemental indenture,
the property and money held by such retiring Trustee hereunder with respect to
the Securities of that or those series to which the appointment of such
successor Trustee relates.

35

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

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

Section 610. Merger,
Conversion, Consolidation or Succession to Business.

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

Section 611. Appointment of
Authenticating Agent.

The Trustee may appoint an
Authenticating Agent or Authenticating Agents, which may be an Affiliate of the
Company, with respect to one or more series of Securities which shall be
authorized to act on behalf of the Trustee to authenticate Securities of that or
those series issued upon original issue or exchange, registration of transfer or
partial redemption thereof or pursuant to Section 307, and Securities so
authenticated shall be entitled to the benefits of this Indenture and shall be
valid and obligatory for all purposes as if authenticated by the Trustee
hereunder. Wherever reference is made in this Indenture to the authentication
and delivery of Securities by the Trustee or the Trustee’s certificate of
authentication, such reference shall be deemed to include authentication and
delivery on behalf of the Trustee by an Authenticating Agent and a certificate
of authentication executed on behalf of the Trustee by an Authenticating
Agent.

Each Authenticating Agent
shall be acceptable to the Company and, except as specified as contemplated by
Section 301, shall at all times be a corporation that would be permitted by
Section 310(a) (1) and (5) of the Trust Indenture Act to be able to act as a
trustee under an indenture qualified under the Trust Indenture Act, is
authorized under applicable law and by its charter to act as such and that has a
combined capital and surplus (computed in accordance with Section 310(a) (2) of
the Trust Indenture Act) of not less that $50,000,000. If at any time an
Authenticating Agent shall cease to be eligible in accordance with the
provisions of this Section, such Authenticating Agent shall resign immediately
in the manner and with the effect specified in this Section. If the
Authenticating Agent has or shall acquire any conflicting interest, as defined
in Section 310(b) of the Trust Indenture Act, with respect to the Securities of
any series, the Authenticating Agent shall take action as is required pursuant
to said Section 310 (b).

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

36

An Authenticating Agent may
resign at any time by giving written notice thereof to the Trustee and the
Company. The Trustee may at any time terminate the agency of an Authenticating
Agent by giving written notice thereof to such Authenticating Agent and the
Company. Upon receiving such a notice of resignation or upon such a termination,
or in case at any time such Authenticating Agent shall cease to be eligible in
accordance with the provisions of this Section, the
Trustee may appoint a successor Authenticating Agent which shall be acceptable to
the Company and shall (i) mail written notice of such appointment by first-class mail,
postage prepaid, to all Holders of Registered Securities, if
any, of the series with respect to which such Authenticating Agent will serve,
as their names and addresses appear in the Security Register, and (ii) if
Securities of the series are issued as Bearer Securities, publish notice of such
appointment at least once in an Authorized Newspaper in the place where such
successor Authenticating Agent has its principal office if such office is
located outside the United States. Any successor Authenticating Agent upon
acceptance of its appointment hereunder shall become vested with all the rights,
powers and duties of its predecessor hereunder, with like effect as if
originally named as an Authenticating Agent. No successor Authenticating Agent
shall be appointed unless eligible under the provisions of this
Section.

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

The provisions of Sections
309, 603 and 604 shall be applicable to each Authenticating Agent.

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

This certificate represents
Securities of the series designated herein referred to in the within-mentioned
Indenture.

	Dated:	[	 	],	
	 	not in its individual capacity but solely as Trustee	
	 	
		By:     	                  	/s/	 
				As
      Authenticating Agent	
	 	
	 	
		By:		/s/	
			 	Authorized Signatory	

If all of the Securities of
any series may not be originally issued at one time, and if the Trustee does not
have an office capable of authenticating Securities upon original issuance
located in a Place of Payment where the Company wishes to have Securities of
such series authenticated upon original issuance, the Trustee, if so requested
in writing (which writing need not comply with Section 102) by the Company,
shall appoint in accordance with this Section an Authenticating Agent having an
office in a Place of Payment designated by the Company with respect to such
series of Securities.

ARTICLE
SEVEN

HOLDERS’ LISTS AND
REPORTS BY TRUSTEE AND COMPANY

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

In accordance with Section
312(a) of the Trust Indenture Act, the Company will furnish or cause to be
furnished to the Trustee

(1) semi-annually, not later
than 15 days after the Regular Record Date for interest for each series of
Securities, a list, in such form as the Trustee may reasonably require, of the
names and addresses of the Holders of Registered Securities of such series as of
such Regular Record Date, or if there is no Regular Record Date for interest for
such series of Securities, semi-annually, upon such dates as are set forth in
the Board Resolution or indenture supplemental hereto authorizing such series,
and 

37

(2) at such other times as the
Trustee may request in writing, within 30 days after the receipt by the Company
of any such request, a list of similar form and content as of a date not more
than 15 days prior to the time such list is furnished, 

provided,
however, that so long as the
Trustee is the Security Registrar no such list shall be required to be
furnished. 

Section 702. Preservation
of Information; Communications to Holders.

(a) The Trustee shall comply
with the obligations imposed upon it pursuant to Section 312 of the Trust
Indenture Act.

(b) Every Holder of Securities
or Coupons, by receiving and holding the same, agrees with the Company and the Trustee that
neither the Company nor the Trustee nor any Paying Agent nor any Security
Registrar shall be held accountable by reason of the disclosure of any such
information as to the names and addresses of the Holders of Securities in
accordance with Section 312 of the Trust Indenture Act, regardless of the source
from which such information was derived, and that the Trustee shall not be held
accountable by reason of mailing any material pursuant to a request made under
Section 312(b) of the Trust Indenture Act.

Section 703. Reports By
Trustee.

(a) Within 60 days after May
15 of each year commencing with the year following the first issuance of
Securities pursuant to Section 301, if required by Section 313(a) of the Trust
Indenture Act, the Trustee shall transmit pursuant to Section 313(c) of the
Trust Indenture Act a brief report dated as of such May 15 with respect to any
of the events specified in said Section 313(a) which may have occurred since the
later of the immediately preceding May 15 and the date of this
Indenture.

(b) The Trustee shall transmit
the reports required by Section 313(a) of the Trust Indenture Act at the times
specified therein.

(c) Reports pursuant to this
Section shall be transmitted in the manner and to the Persons required by
Sections 313(c) and (d) of the Trust Indenture Act.

Section 704. Reports By
Company.

The Company, pursuant to
Section 314(a) of the Trust Indenture Act, shall:

(1) file with the Trustee,
within 15 days after the Company actually files the same with the Commission, copies of the
annual reports and of the information, documents and other reports (or copies of
such portions of any of the foregoing as the Commission may from time to time by
rules and regulations prescribe) which the Company may be required to file with
the Commission pursuant to Section 13 or Section 15(d) of the Securities
Exchange Act of 1934; or, if the Company is not required to file information,
documents or reports pursuant to either of said Sections, then it shall file
with the Trustee and the Commission, in accordance with rules and regulations
prescribed from time to time by the Commission, such of the supplementary and
periodic information, documents and reports which may be required pursuant to
Section 13 of the Securities Exchange Act of 1934 in respect of a Security
listed and registered on a national Securities exchange as may be prescribed
from time to time in such rules and regulations; 

(2) file with the Trustee and
the Commission, in accordance with rules and regulations prescribed from time to
time by the Commission, such additional information, documents and reports with
respect to compliance by the Company with respect to compliance by such obligor
with the conditions and covenants of this Indenture as may be required from time
to time by such rules and regulations; and 

38

(3) transmit within 30 days
after the actual filing thereof with the Trustee, in the manner and to the
extent provided in Section 313(c) of the Trust Indenture Act, such summaries of
any information, documents and reports required to be filed by the Company pursuant to paragraphs (1)
and (2) of this Section as may be required by rules and regulations prescribed
from time to time by the Commission; and 

(4) transmit within 90 days of
December 31 of each year to the Trustee, a brief certificate from the principal
executive officer, principal financial officer or principal accounting officer
of the Company as to his or her knowledge of such obligor’s compliance with all
conditions and covenants under the Indenture as determined without regard to any
period of grace or requirement of notice provided under the Indenture.

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 or other 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).

ARTICLE
EIGHT

CONSOLIDATION, MERGER AND
SALES

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

Nothing contained in this
Indenture or in any of the Securities shall prevent any consolidation or merger
of the Company with or into any other Person or Persons (whether or not
affiliated with the Company), or successive consolidations or mergers in which
the Company or its successor or successors shall be a party or parties, or shall
prevent any conveyance, transfer or lease of the property of the Company as an
entirety or substantially as an entirety, to any other Person (whether or not
affiliated with the Company); PROVIDED, HOWEVER, that:

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

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

(3) each of the Company and
the successor Person has delivered to the Trustee an Officers’ Certificate and
an Opinion of Counsel, each stating that such consolidation, merger, conveyance,
transfer or lease and such supplemental indenture comply with this Article and
that all conditions precedent herein provided for relating to such transaction
have been complied with. 

Section 802. Successor
Corporation Substituted For Company.

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

39

ARTICLE
NINE

SUPPLEMENTAL
INDENTURES

Section 901. Supplemental
Indentures Without Consent of Holders.

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

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

(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;

(3) to add to or change any of
the provisions of this Indenture to provide that Bearer Securities may be
registrable as to principal, to change or eliminate any restrictions on the
payment of principal (or premium, if any) on Registered Securities or of
principal (or premium, if any) or any interest on Bearer Securities, to permit
Registered Securities to be exchanged for Bearer Securities or to permit or
facilitate the issuance of Securities in uncertified form, PROVIDED any such
action shall not adversely affect the interests of the Holders of Securities of
any series or any Coupons appertaining thereto in any material
respect;

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

(5) 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 609 (b);

(6) 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 which shall
not be inconsistent with the provisions of this Indenture and which shall not
adversely affect the interest of the Holders of Securities of any series or any
related coupons in any material respect;

(7) to add to, delete from or
revise the conditions, limitations and restrictions on the authorized amount,
terms or purposes of issue, authentication and delivery of Securities, as herein
set forth; 

(8) to add any additional
Events of Default; 

(9) to modify, eliminate or
add to the provisions of this Indenture to such extent as shall be necessary to
conform the obligations of the Company and the Trustee under this Indenture to
the obligations imposed on such Persons hereunder pursuant to the Trust
Indenture Act or under any similar federal statute hereafter enacted and rules
or regulations of the Commission thereunder; 

(10) to make provisions with
respect to the conversion rights of Holders of Convertible Securities pursuant
to the requirements of Section 1506; or 

40

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

Section 902. 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 Holders delivered to the
Company and the Trustee, the Company, when authorized by Board Resolutions, 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, shall

(1) change the Stated Maturity
of the principal of, or any installment of interest on, any Security, or reduce
the principal amount thereof or the rate of interest thereon or any Additional
Amounts payable in respect thereof, or any premium payable upon the redemption
thereof, or change the obligation of the Company to pay Additional Amounts
pursuant to Section 1004 (except as contemplated by Section 801(1) and permitted
by Section 901(1)), or reduce the amount of the principal of an Original Issue
Discount Security that would be due and payable upon a declaration of
acceleration of the Maturity thereof pursuant to Section 502, or change the
Place of Payment, coin or currency in which any Security or any premium or the
interest thereon is payable, or impair the right to institute suit for the
enforcement of any such payment on or after the Stated Maturity thereof (or, in
the case of redemption, on or after the Redemption Date), or 

(2) reduce the percentage in
principal amount of the Outstanding Securities of any series, the consent of
whose Holders is required for any such supplemental indenture, or the consent of
whose Holders is required for any waiver (of compliance with certain provisions
of this Indenture or certain defaults hereunder and their consequences) provided
for in this Indenture, or reduce the requirements of Section 1404 for quorum or
voting, or 

(3) modify any of the
provisions of this section, or Sections 512, 513 or Section 1011, 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. 

The Company may, but shall not
be obligated to, fix a record date for the purposes of determining the Persons
entitled to consent to any indenture supplemental hereto. If a record date is
fixed, the Holders on such record date, or their duly designated proxies, and
only such Persons, shall be entitled to consent to such supplemental indenture,
whether or not such Holders remain Holders after such record date; PROVIDED,
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.

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

It shall not be necessary for
any Act of Holders of Securities 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.

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Section 903. Execution of
Supplemental Indentures.

As a condition to executing,
or accepting the additional trusts created by, any supplemental indenture
permitted by this Article or the modifications thereby of the trust created by
this Indenture, the Trustee shall be provided with, and (subject to Section 315
of the Trust Indenture Act) 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 and that it complies with the terms of this Indenture. The Trustee
may, but shall not be obligated to, enter into any such supplemental indenture
which affects the Trustee’s own rights, duties or immunities under this
Indenture or otherwise.

Section 904. Effect of
Supplemental Indentures.

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

Section 905. Conformity
With Trust Indenture Act.

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

Section 906. Reference in
Securities to Supplemental Indentures.

Securities 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
TEN

COVENANTS

Section 1001. Payment of
Principal, Premium, If Any, and Interest.

The Company covenants and
agrees for the benefit of the Holders of each series of Securities that it will
duly and punctually pay the principal of (and premium, if any), interest on or
any Additional Amounts payable in respect of the Securities of that series in
accordance with the terms of such series of Securities, any Coupons appertaining
thereto and this Indenture. Any interest due on and any Additional Amounts
payable in respect of Bearer Securities on or before Maturity, other than
Additional Amounts, if any, payable as provided in Section 1004 in respect of
principal of (or premium, if any, on) such a Security, shall be payable only
upon presentation and surrender of the several coupons for such interest
installments as are evidenced thereby as they severally mature.

Section 1002. Maintenance
of Office or Agency.

The Company will maintain in
each Place of Payment for any series of Securities an office or agency where
Securities of such series (but not Bearer Securities, except as otherwise
provided below, unless such Place of Payment is located outside the United
States) may be presented or surrendered for payment, where Securities of that
series may be surrendered for registration of transfer or exchange and where
notices and demands to or upon the Company in respect of the Securities of that
series and this Indenture may be served. If Securities of a series are issuable
as Bearer Securities, the Company shall maintain, subject to any laws or
regulations applicable thereto, an office or agency in a Place of Payment for
such series which is located outside the United States where Securities of such
series and the related Coupons may be presented and surrendered for payment
(including payment of any Additional Amounts payable on Securities of such
series pursuant to Section 1004); PROVIDED, HOWEVER, that if the Securities of
such series are listed on The Stock Exchange of the United Kingdom and the
Republic of Ireland or the Luxembourg Stock Exchange or any other stock exchange
located outside the United States and such stock exchange shall so require, the
Company will maintain a Paying Agent in London, Luxembourg or any other required
city located outside the United States, as the case may be, so long as the
Securities of such series are listed on such exchange. The Company will give
prompt written notice to the Trustee of the location, and any change in the
location, of such office or agency. If at any time the Company shall fail to
maintain any such required office or agency or shall fail to furnish the Trustee
with the address thereof, such presentations, surrenders, notices and demands
may be made or served at the Corporate Trust Office of the Trustee, except that
Bearer Securities of that series and the related Coupons may be presented and
surrendered for payment (including payment of any Additional Amounts payable on
Bearer Securities of that series pursuant to Section 1004) at the place
specified for the purpose pursuant to Section 301, and the Company hereby
appoints the Trustee as its agent to receive all such presentations, surrenders,
notices and demands. 

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Except as otherwise specified
as contemplated by Section 301, no payment of principal, premium or interest on
Bearer Securities shall be made at any office or agency of the Company in the
United States or by check mailed to any address in the United States or by
transfer to an account maintained with a bank located in the United States;
PROVIDED, HOWEVER, payment of principal of and any premium and interest in U.S.
dollars (including Additional Amounts payable in respect thereof) on any Bearer
Security may be made at the Corporate Trust Office or any office or agency
designated by the Company if (but only if) payment of the full amount of such
principal, premium, interest or Additional Amounts at all offices outside the
United States maintained for the purpose by the Company in accordance with this
Indenture is illegal or effectively precluded by exchange controls or other
similar restrictions.

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 their
obligation to maintain an office or agency in each Place of Payment for
Securities of any series for such purposes. The Company will give prompt written
notice to the Trustee of any such designation or rescission and of any change in
the location of any such other office or agency. Unless otherwise specified as
contemplated by Section 301, the Company hereby designates as the Place of
Payment for each series the Corporate Trust Office of the Trustee. Pursuant to
Section 301(9) of this Indenture, the Company may subsequently appoint a place
or places where such Securities may be payable.

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

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

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

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

(1) hold all sums held by it
for the payment of the principal of (and premium, if any) or interest on
Securities of that series in trust for the benefit of the Persons entitled
thereto until such sums shall be paid to such Persons or otherwise disposed of
as herein provided; 

43

(2) give the Trustee notice of
any default by the Company (or any other obligor upon the Securities of that
series) in the making of any payment of principal (and premium, if any) or
interest on the Securities of that series; and 

(3) at any time during the
continuance of any such default, upon the written request of the Trustee,
forthwith pay to the Trustee all sums so held in trust by such Paying Agent.

The Company may at any time,
for the purpose of obtaining the satisfaction and discharge of this Indenture or
for any other purpose, pay, or by Company Order direct any Paying Agent to pay,
to the Trustee all sums held in trust by the Company or such Paying Agent, such
sums to be held by the Trustee upon the same terms 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.

Except as otherwise provided
hereby or pursuant hereto, any money deposited with the Trustee or any Paying
Agent, or then held by the Company, in trust for the payment of the principal of
(and premium, if any) or interest and Additional Amounts on any Security of any
series 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
Company Request, or (if then held by the Company) shall be discharged from such
trust; and the Holder of such Security or any Coupon appertaining thereto shall
thereafter, as an unsecured general creditor, look only to the Company for
payment thereof, and all liability of the Trustee or such Paying Agent with
respect to such trust money, and all liability of the Company as trustee
thereof, shall thereupon cease; PROVIDED, HOWEVER, that the Trustee or such
Paying Agent, before being required to make any such repayment, may at the
expense of the Company cause to be published once, in an Authorized Newspaper in
each Place of Payment for such series or to be mailed to Holders of Registered
Securities for such series, or both, 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 or mailing nor shall it be later than two
years after such principal (and premium, if any) or interest has become due and
payable, any unclaimed balance of such money then remaining will be repaid to
the Company.

Section 1004. Additional
Amounts.

If any Securities of a series
provide for the payment of Additional Amounts, the Company agrees to pay to the
Holder of any such Security of any such series or any Coupon appertaining
thereto Additional Amounts as provided therein. Whenever in this Indenture there
is mentioned, in any context, the payment of the principal of (or premium, if
any) or interest on, or in respect of, any Security of any series or any related
Coupon or the net proceeds received on the sale or exchange of any Security of
any series, such mention shall be deemed to include mention of the payment of
Additional Amounts provided by the terms of such series established hereby or
pursuant hereto to the extent that, in such context, Additional Amounts are,
were or would be payable in respect thereof pursuant to such terms and express
mention of the payment of Additional Amounts (if applicable) in any provisions
hereof shall not be construed as excluding Additional Amounts in those
provisions hereof where such express mention is not made.

Except as otherwise provided
herein or pursuant hereto, if the Securities of a series provide for the Payment
of Additional Amounts, at least 10 days prior to the first Interest Payment Date
with respect to such series of Securities (or if the Securities of that series
shall not bear interest prior to Maturity, the first day on which a payment of
principal (and premium, if any, is made), and at least 10 days prior to each
date of payment of principal (and premium, if any) or interest if there has been
any change with respect to the matters set forth in the below-mentioned
Officers’ Certificate, the Company will furnish the Trustee and the principal
Paying Agent or Paying Agents, if other than the Trustee, an Officers’
Certificate instructing the Trustee and such Paying Agent or Paying Agents
whether such payment of principal (and premium, if any) of or interest on the
Securities of that series shall be made to Holders of Securities of that series
or the Coupons appertaining thereto who are United States Aliens without
withholding for or on account of any tax, assessment or other governmental
charge described in the Securities of that series. If any such withholding shall
be required, then such Officers’ Certificate shall specify by country the
amount, if any, required to be withheld on such payments to such Holders of
Securities or Coupons and the Company agrees to pay to the Trustee or such
Paying Agent the Additional Amounts required by this Section. The Company
covenants to indemnify the Trustee and any Paying Agent for, and to hold them
harmless against, any loss, liability or expense reasonably incurred without
negligence or bad faith on their part arising out of or in connection with
actions taken or omitted by any of them in reliance on any Officers’ Certificate
furnished pursuant to this Section.

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Section 1005. Statement As
To Compliance; Notice of Certain Defaults.

(a) The Company will, in
addition to the reports required by Section 704(4), deliver to the Trustee,
within 120 days after the end of each fiscal year (which on the date hereof ends
on December 31), commencing December 31, 2013, a written statement, which need
not comply with Section 102, signed by the Chairman of the Board, a Deputy
Chairman, Vice Chairman, the President or a Vice President and by the Treasurer
or an Assistant Treasurer of the Company, stating, as to each signer thereof,
that

(1) a review of the activities
of the Company during such year and of performance under this Indenture has been
made under his supervision, and 

(2) to the best of his
knowledge, based on such review, (a) the Company has fulfilled all of its
obligations under this Indenture throughout such year, or, if there has been a
default in the fulfillment of any such obligation, specifying each such default
known to him and the nature and status thereof, and (b) no event has occurred
and is continuing which is, or after notice or lapse of time or both would
become, an Event of Default, or, if such an event has occurred and is
continuing, specifying each such event known to him and the nature and status
thereof. 

(b) The Company will deliver
to the Trustee as soon as possible, and in any event, within five days after the
occurrence thereof, written notice of any event which after notice or lapse of
time or both would become an Event of Default.

Section 1006. Limitation on
Liens.

The Company will not pledge,
mortgage or hypothecate, or permit to exist any pledge, mortgage or
hypothecation or other lien upon, any shares of Capital Stock of the Subsidiary
Bank to secure any indebtedness for borrowed money without making effective
provisions whereby the Securities shall be equally and ratably secured with any
and all such indebtedness.

In case the Company shall
propose to pledge, mortgage, or hypothecate any such shares of Capital Stock at
any time owned by it to secure any indebtedness, the Company will prior thereto
give written notice thereof to the Trustee and will prior to or simultaneously
with such pledge, mortgage or hypothecation, by supplemental indenture delivered
to the Trustee, in form satisfactory to it, effectively secure all the
Securities equally and ratably with such indebtedness, by pledge, mortgage or
hypothecation of such shares of Capital Stock. Such supplemental indenture shall
contain the provisions concerning the possession, control, release and
substitution of mortgaged and pledged property and Securities and other
appropriate matters which are required or are permitted by the Trust Indenture
Act (as in effect at the date of execution of such supplemental indenture) to be
included in a secured indenture qualified under said Trust Indenture Act, and
may also contain such additional and amendatory provisions permitted by said
Trust Indenture Act as the Company and the Trustee shall deem advisable or
appropriate or as the Trustee shall deem necessary in connection with such
pledge, mortgage or hypothecation.

Section 1007. Limitation on
Certain Acquisitions.

The Company will not (a)
acquire Capital Stock of any corporation or (b) acquire substantially all the
assets and liabilities of any corporation, if, immediately upon giving effect to
such acquisition, the Company would not then be in full compliance with all the
terms, conditions and covenants contained in this Indenture.

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Section 1008. Payment of
Taxes and Other Claims.

The Company will pay or
discharge or cause to be paid or discharged, before the same shall become
delinquent, (1) all taxes, assessments and governmental charges levied or
imposed upon the Company or any Subsidiary or upon the income, profits or
property of the Company or any Subsidiary, and (2) all lawful claims for labor,
materials and supplies which, if unpaid, might by law become a lien upon the
property of the Company or any subsidiary; 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.

Section 1009. Corporate
Existence.

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

Section 1010. Waiver of
Certain Covenants.

The Company may omit in any
particular instance to comply with any term, provision or condition set forth in
Section 1006, 1007 and 1008 with respect to the Securities of any series if
before the time for such compliance the Holders of at least a majority in
principal amount of the Outstanding Securities of such series shall, by Act of
such Holders, either waive such compliance in such instance or generally waive
compliance with such term, provision or condition, but no such waiver shall
extend to or affect such term, provision or condition except to the extent so
expressly waived, and, until such waiver shall become effective, the obligations
of the Company and the duties of the Trustee in respect of any such term,
provision or condition shall remain in full force and effect.

Section 1011. Calculation
of Original Issue Discount.

The Company shall file with
the Trustee promptly at the end of each calendar year (i) a written notice
specifying the amount of original issue discount (including daily rates and
accrual periods) accrued on Outstanding Securities as of the end of such year
and (ii) such other specific information relating to such original issue
discount as may then be relevant under the Internal Revenue Code of 1986, as
amended from time to time.

ARTICLE
ELEVEN

REDEMPTION OF
SECURITIES

Section 1101. Applicability
of Article.

Redemption of Securities of
any series at the option of the Company as permitted or required by the terms of
such Securities shall be made in accordance with the terms of such Securities
and (except as otherwise provided herein or pursuant hereto) this
Article.

Section 1102. Election To
Redeem; Notice To Trustee.

The election of the Company to
redeem any Securities shall be evidenced by Board Resolution. In case of any
redemption at the election of the Company of the Securities of any series, with
the same issue date, interest rate and Stated Maturity, the Company shall, at
least 60 days prior to the Redemption Date fixed by the Company (unless a
shorter notice shall be satisfactory to the Trustee), notify the Trustee of such
Redemption Date and of the principal amount of Securities of such series to be
redeemed.

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Section 1103. Selection By
Trustee of Securities To Be Redeemed.

If less than all the
Securities of any series with the same issue date, interest rate, Stated
Maturity and other terms 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 of the
principal amount of Registered Securities of such series; PROVIDED, HOWEVER,
that no such partial redemption shall reduce the portion of the principal amount
of a Registered Security of such series not redeemed to less than the minimum
denomination for a Security of such series established herein pursuant
hereto.

If any Convertible 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 and the Security Registrar (if other than itself) in writing
of the Securities selected for redemption and, in the case of any Securities
selected for partial redemption, the principal amount thereof to be
redeemed.

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

Section 1104. Notice of
Redemption.

Notice of redemption shall be
given in the manner provided in Section 106, not less than 30 nor more than 60
days prior to the Redemption Date, unless a shorter period is specified in the
Securities to be redeemed, to the Holders of Securities to be redeemed. Failure
to give notice by mailing in the manner herein provided to the Holder of any
Registered Securities designated for redemption as a whole or in part, or any
defect in the notice to any such Holder, shall not affect the validity of the
proceedings for the redemption of any other Securities or portion
thereof.

Any notice that is mailed to
the Holder of any Registered Securities in the manner herein provided shall be
conclusively presumed to have been duly given, whether or not such Holder
receives the notice.

All notices of redemption
shall state:

(1) the Redemption Date,

(2) the Redemption Price, 

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

(4) in case any Registered
Security is to be redeemed in part only, the notice which relates to such
Security shall state that on and after the Redemption Date, upon surrender of
such Security, the Holder of such Security will receive, without charge, a new
Registered Security or Registered Securities of authorized denominations for the
principal amount thereof remaining unredeemed, 

(5) in the case of Convertible
Securities, the Conversion Price then in effect, the date on which the right to
convert the principal amount of the Securities or the portions thereof to be
redeemed will terminate and the place or places where such Securities may be
surrendered for conversion, 

(6) that on the Redemption
Date the Redemption Price will become due and payable upon each such Security to
be redeemed only, as to Bearer Securities, against tender of such Security and
any Coupons appertaining thereto, and, if applicable, that interest thereon and
Additional Amounts, if any, shall cease to accrue on and after said date,

47

(7)
the place or places where such Securities, together, in the case of Bearer
Securities with all Coupons appertaining thereto, if any, maturing after the
Redemption Date, are to be surrendered for payment of the Redemption Price,

(8)
that the redemption is for a sinking fund, if such is the case, and 

(9)
the CUSIP number, if any. 

A
notice of redemption published as contemplated by Section 106 need not identify
particular Registered Securities to be redeemed.

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

Section 1105. Deposit of
Redemption Price.

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

If
any Convertible Security or portion thereof called for redemption is converted
pursuant to Article Fifteen, any money deposited with the Trustee or so
segregated and held in trust for the redemption of such Security or portion
thereof shall (subject to any right of the Holder of the Security on a Regular
Record Date preceding such conversion to receive interest) be paid to the
Company upon Company Request or, if then held by the Company, shall be
discharged from such trust.

Section 1106. Securities
Payable on Redemption Date.

Notice of redemption having been given as aforesaid, the Securities so to
be redeemed shall, on the Redemption
Date, become due and payable at the Redemption Price therein specified, and from
and after such date (unless the Company shall default in the payment of the
Redemption Price and accrued interest) such Securities shall cease to bear
interest and the Coupons for such interest appertaining to any Bearer Securities
so to be redeemed, except to the extent provided below, shall be void. Upon
surrender of any such Security for redemption in accordance with said notice,
together with all Coupons, if any, appertaining thereto maturing after the
Redemption Date, such Security shall be paid by the Company at the Redemption
Price, together with accrued interest (or any Additional Amounts) to the
Redemption Date; PROVIDED, HOWEVER, that installments of interest on Bearer
Securities whose Stated Maturity is on or prior to the Redemption Date shall be
payable only upon presentation and surrender of coupons for such interest (at an
office or agency located outside the United States except as otherwise provided
in Section 1002), and PROVIDED, FURTHER, that installments of interest on
Registered Securities 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
Regular Record Dates according to their terms and the provisions of Section
308.

If
any Bearer Security surrendered for redemption shall not be accompanied by all
appurtenant Coupons maturing after the Redemption Date, such Security may be
paid after deducting from the Redemption Price an amount equal to the face
amount of all such missing Coupons, or the surrender of such missing Coupon or
Coupons may be waived by the Company and the Trustee if there be furnished to
them such Security or indemnity as they may require to save each of them and any
Paying Agent harmless. If thereafter the Holder of such Security shall surrender
to the Trustee or any Paying Agent any such missing coupon in respect of which a
deduction shall have been made from the Redemption Price, such Holder shall be
entitled to receive the amount so deducted; PROVIDED, HOWEVER, that
interest (or any Additional Amounts) represented by Coupons shall be payable
only upon presentation and surrender of those Coupons at an office or agency
located outside of the United States except as otherwise provided in Section
1002.

48

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

Section 1107. Securities
Redeemed in Part.

Any
Registered Security which is to be redeemed only in part shall be surrendered at
any office or agency of the Company maintained for that purpose pursuant to
Section 1002 (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 Registered
Security or Securities of the same series, containing identical terms and
provisions, 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. If a Security in global form is
so surrendered, the Company shall execute, and the Trustee shall authenticate
and deliver to the U.S. Depository or other depository for such Security in
global form as shall be specified in the Company Order with respect thereto to
the Trustee, without service charge, a new Security in global form in a
denomination equal to and in exchange for the unredeemed portion of the
principal of the Security in global form so surrendered.

Section 1108. Conversion
Arrangements on Call for Redemption.

Notwithstanding anything to the contrary contained in this Indenture, in
connection with any redemption of Convertible Securities of any series, the
Company, by an agreement with one or more investment bankers or other
purchasers, may arrange for such purchasers to purchase all such Convertible
Securities called for redemption (the “Called Securities”) which are either (i)
surrendered for redemption or (ii) not duly surrendered for redemption or
conversion prior to the close of business on the Redemption Date, and to convert
the same into shares of Common Stock, by the purchasers’ depositing with the
Trustee (acting as Paying Agent with respect to the deposit of such amount and
as conversion agent with respect to the conversion of such Called Securities),
in trust for the Holders of the Called Securities, on or prior to the Redemption
Date in the manner agreed to by the Company and such purchasers, an amount
sufficient to pay the Redemption Price, payable by the Company on redemption of
such Called Securities. In connection with any such arrangement for purchase and
conversion, the Trustee as Paying Agent shall pay on or after the Redemption
Date such amounts so deposited by the purchasers in exchange for Called
Securities surrendered for redemption prior to the close of business on the
Redemption Date and for all Called Securities surrendered after such Redemption
Date. Notwithstanding anything to the contrary contained in this Article Eleven,
the obligation of the Company to pay the Redemption Price of such Called
Securities shall be satisfied and discharged to the extent such amount is so
paid by such purchasers. However, nothing in this Section 1108 shall in any way
relieve the Company of the obligation to pay such Redemption Price on all Called
Securities to the extent such amount is not so paid by said purchasers. For all
purposes of this Indenture, any Called Securities surrendered by the Holders for
redemption, and any Called Securities not duly surrendered for redemption or
conversion prior to the close of business on the Redemption Date, shall be
deemed acquired by such purchasers from such Holders and surrendered by such
purchasers for conversion and shall in all respects be deemed to have been
converted, all as of immediately prior to the close of business on the
Redemption Date, subject to the deposit by the Purchasers of the above amount as
aforesaid. Nothing in this Section 1108 shall in any way limit the right of any
Holder of a Security to convert his Security pursuant to the terms of this
Indenture and of such Security at any time prior to the close of business on the
Redemption Date applicable thereto.

49

ARTICLE
TWELVE

SINKING
FUNDS

Section 1201. Applicability
of Article.

The provisions of this Article shall be
applicable to any sinking fund for the retirement of Securities of a series,
except as otherwise permitted or required by any form of Security of such series
issued pursuant to this Indenture.

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

Section 1202. Satisfaction
of Sinking Fund Payments With Securities.

The
Company may, in satisfaction of all or any part of any sinking fund payment with
respect to the Securities of such series to be made pursuant to the terms of
such Securities as provided for by the terms of such series (1) deliver
Outstanding Securities of such series (other than any of such Securities
previously called for redemption or any of such Securities in respect of which
cash shall have been released to the Company), together in the case of any
Bearer Securities of such series with all unmatured Coupons appertaining
thereto, and (2) apply as a credit Securities of such series which have been
redeemed either at the election of the Company pursuant to the terms of such
series of Securities or through the application of permitted optional sinking
fund payments pursuant to the terms of such Securities, PROVIDED that such
series of 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.
If as a result of the delivery or credit of Securities of any series in lieu of
cash payments pursuant to this Section 1202, the principal amount of Securities
of such series to be redeemed in order to exhaust the aforesaid cash payment
shall be less than $100,000, the Trustee need not call Securities of such series
for redemption, except upon Company Request, and such cash payment shall be held
by the Trustee or a Paying Agent and applied to the next succeeding sinking fund
payment, PROVIDED, HOWEVER, that the Trustee or such Paying Agent shall at the
request of the Company from time to time pay over and deliver to the Company any
cash payment so being held by the Trustee or such Paying Agent upon delivery by
the Company to the Trustee of Securities of that series purchased by the Company
having an unpaid principal amount equal to the cash payment requested to be
released to the Company.

Section 1203. Redemption of
Securities For Sinking Fund.

Not
less than 75 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 mandatory 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 of Securities of that
series pursuant to Section 1202, and the optional amount, if any, to be added in
cash to the next ensuing mandatory sinking fund payment, and will also deliver
to the Trustee any Securities to be so credited and not theretofore delivered.
If such Officers’ Certificate shall specify an optional amount to be added in
cash to the next ensuing mandatory sinking fund payment, the Company shall
thereupon be obligated to pay the amount therein specified. Not less than 60
days before each such sinking fund payment date the Trustee shall select the
Securities to be redeemed upon such sinking fund payment date in the manner
specified in Section 1103 and cause notice of the redemption thereof to be given
in the name of and at the expense of the Company in the manner provided in
Section 1104. Such notice having been duly given, the redemption of such
Securities shall be made upon the terms and in the manner stated in Sections
1106 and 1107.

50

ARTICLE
THIRTEEN

REPAYMENT AT THE OPTION
OF HOLDERS

Section 1301. Applicability
of Article.

Securities of any series which are
repayable at the option of the Holders thereof before their Stated Maturity
shall be repaid in accordance with the terms of the Securities of such series.
The repayment of any principal amount of Securities pursuant to such option of
the Holder to require repayment of Securities before their Stated Maturity, for
purposes of Section 310, shall not operate as a payment, redemption or
satisfaction of the indebtedness represented by such Securities unless and until
the Company, at its option, shall deliver or surrender the same to the Trustee
with a directive that such Securities be cancelled. Notwithstanding anything to
the contrary contained in this Article Thirteen, in connection with any
repayment of Securities, the Company may arrange for the purchase of any
Securities by an agreement with one or more investment bankers or other
purchasers to purchase such Securities by paying to the Holders of such
Securities on or before the close of business on the repayment date an amount
not less than the repayment price payable by the Company on repayment of such
Securities, and the obligation of the Company to pay the repayment price of such
Securities shall be satisfied and discharged to the extent such payment is so
paid by such purchasers.

ARTICLE
FOURTEEN

MEETINGS OF
HOLDERS

Section 1401. Purposes For
Which Meetings May Be Called.

A
meeting of Holders of Securities of such series may be called at any time and
from time to time pursuant to this Article to make, give or take any request,
demand, authorization, direction, notice, consent, waiver or other action
provided by this Indenture to be made, given or taken by Holders of Securities
of such series.

Section 1402. Call, Notice
and Place of Meetings.

(a)
The Trustee may at any time call a meeting of Holders of Securities of any
series for any purpose specified in Section 1401, to be held at such time and at
such place in the Principle Office of the Trustee, or, if Securities of such
series are to be issued as Bearer Securities, in London, as the Trustee shall
determine. Notice of every meeting of Holders of Securities of any series,
setting forth the time and the place of such meeting and in general terms the
action proposed to be taken at such meeting, shall be given, in the manner
provided in Section 106, not less than 21 nor more than 180 days prior to the
date fixed for the meeting.

(b)
In case at any time the Company, pursuant to Board Resolution, or the Holders of
at least 10% in principal amount of the Outstanding Securities of any series
shall have requested the Trustee to call a meeting of the Holders of Securities
of such series for any purpose specified in Section 1401, by written request
setting forth in reasonable detail the action proposed to be taken at the
meeting, and the Trustee shall not have made the first publication of the notice
of such meeting within 21 days after receipt of such request or shall not
thereafter proceed to cause the meeting to be held as provided herein, then the
Company or the Holders of Securities of such series in the amount above
specified, as the case may be, may determine the time and the place for such
meeting and may call such meeting for such purposes by giving notice thereof as
provided in subsection (a) of this Section.

Section 1403. Persons
Entitled To Vote At Meetings.

To
be entitled to vote at any meeting of Holders of Securities of any series, a
Person shall be (1) a Holder of one or more Outstanding Securities of such
series, or (2) a Person appointed by an instrument in writing as proxy for a
Holder or Holders of one or more Outstanding Securities of such series by such
Holder or Holders. The only Persons who shall be entitled to be present or to
speak at any meeting of Holders of Securities of any series shall be the Persons
entitled to vote at such meeting and their counsel, any representatives of the
Trustee and its counsel and any representatives of the Company and its
counsel.

51

Section 1404. Quorum;
Action.

The
Persons entitled to vote a majority in principal amount of the Outstanding
Securities of a series shall constitute a quorum for a meeting of Holders of
Securities of such series. In the absence of a quorum within 30 minutes
after the time appointed for any such meeting, the meeting shall, if convened at
the request of Holders of Securities of such series, be dissolved. In any other
case the meeting may be adjourned for a period of not less than 10 days as
determined by the chairman of the meeting prior to the adjournment of such
meeting. In the absence of a quorum at any such adjourned meeting, such
adjourned meeting may be further adjourned for a period of not less than 10 days
as determined by the chairman of the meeting prior to the adjournment of such
adjourned meeting. Notice of the reconvening of any adjourned meeting shall be
given as provided in section 1402 (a), except that such notice need be given
only once not less than five days prior to the date on which the meeting is
scheduled to be reconvened. Notice of the reconvening of an adjourned meeting
shall state expressly the percentage, as provided above, of the principal amount
of the Outstanding Securities of such series which shall constitute a
quorum.

Except as limited by the proviso to Section 902, any resolution presented
to a meeting or adjourned meeting duly reconvened at which a quorum is present
as aforesaid may be adopted only by the affirmative vote of the Holders of a
majority in principal amount of the Outstanding Securities of that series;
PROVIDED, HOWEVER, that, except as limited by the proviso to Section 902, any
resolution with respect to any request, demand, authorization, direction,
notice, consent, waiver or other action which this Indenture expressly provides
may be made, given or taken by the Holders of a specified percentage, which is
less than a majority, in principal amount of the Outstanding Securities of a
series may be adopted at a meeting or an adjourned meeting duly reconvened and
at which a quorum is present as aforesaid by the affirmative vote of the Holders
of such specified percentage in principal amount of the Outstanding Securities
of that series.

Any
resolution passed or decision taken at any meeting of Holders of Securities of
any series duly held in accordance with this Section shall be binding on all the
Holders of Securities of such series and the Coupons appertaining thereto,
whether or not present or represented at the meeting.

Section 1405. Determination
of Voting Rights; Conduct and Adjournment of Meetings.

(a)
Notwithstanding any other provisions of this Indenture, the Trustee may make
such reasonable regulations as it may deem advisable for any meeting of Holders
of Securities of such series in regard to proof of the holding of Securities of
such series and of the appointment of proxies and in regard to the appointment
and duties of inspectors of votes, the submission and examination of proxies,
certificates and other evidence of the right to vote, and such other matters
concerning the conduct of the meeting as it shall deem appropriate. Except as
otherwise permitted or required by any such regulations, the holding of
Securities shall be proved in the manner specified in Section 104 and the
appointment of any proxy shall be proved in the manner specified in Section 104
or by having the signature of the person executing the proxy witnessed or
guaranteed by any trust company, bank or banker authorized by Section 104 to
certify to the holding of Bearer Securities. Such regulations may provide that
written instruments appointing proxies, regular on their face, may be presumed
valid and genuine without the proof specified in Section 104 or other
proof.

(b)
The Trustee shall, by an instrument in writing, appoint a temporary chairman of
the meeting, unless the meeting shall have been called by the Company or by
Holders of Securities as provided in Section 1402(b), in which case the Company
or the Holders of Securities of the series calling the meeting, as the case may
be, shall in like manner appoint a temporary chairman. A permanent chairman and
a permanent secretary of the meeting shall be elected by vote of the Persons
entitled to vote a majority in principal amount of the Outstanding Securities of
such series represented at the meeting.

(c)
At any meeting each Holder of a Security of such series or proxy shall be
entitled to one vote for each $1,000 principal amount of Securities of such
series held or represented by him; PROVIDED, HOWEVER, that no vote shall be cast
or counted at any meeting in respect of any Security challenged as not
Outstanding and ruled by the chairman of the meeting to be not Outstanding. The
chairman of the meeting shall have no right to vote, except as a Holder of a
Security of such series or proxy.

(d)
Any meeting of Holders of Securities of any series duly called pursuant to
Section 1402 at which a quorum is present may be adjourned from time to time by
Persons entitled to vote a majority in principal amount of the Outstanding
Securities of such series represented at the meeting; and the meeting may be
held as so adjourned without further notice.

52

Section 1406. Counting
Votes and Recording Action of Meetings.

The
vote upon any resolution submitted to any meeting of Holders of Securities of
any series shall be by written ballots on which shall be subscribed the
signatures of the Holders of Securities of such series or of their
representatives by proxy and the principal amounts and serial numbers of the
Outstanding Securities of such series held or represented by them. The permanent
chairman of the meeting shall appoint two inspectors of votes who shall count
all votes cast at the meeting for or against any resolution and who shall make
and file with the secretary of the meeting their verified written reports in
triplicate of all votes cast at the meeting.

A
record, at least in triplicate, of the proceedings of each meeting of Holders of
Securities of any series shall be prepared by the secretary of the meeting and
there shall be attached to said record the original reports of the inspectors of
votes on any vote by ballot taken thereat and affidavits by one or more persons
having knowledge of the facts setting forth a copy of the notice of the meeting
and showing that said notice was given as provided in Section 1402 and, if
applicable, Section 1404. Each copy shall be signed and verified by the
affidavits of the permanent chairman and secretary of the meeting and one such
copy shall be delivered to the Company and another to the Trustee to be
preserved by the Trustee, the latter to have attached thereto the ballots voted
at the meeting. Any record so signed and verified shall be conclusive evidence
of the matters therein stated

ARTICLE
FIFTEEN

CONVERSION

Section 1501. Conversion
Privilege.

Subject to and upon compliance with the provisions of this Article
Fifteen and the terms of the Convertible Securities of the series proposed to be
converted, at the option of the Holder, any Convertible Security or any portion
of the principal amount thereof which is $1,000 or an integral multiple thereof,
may be converted into shares of Common Stock, as said shares shall be
constituted at the Date of Conversion, at the Conversion Price for such
Convertible Securities of such series in effect at the Date of
Conversion.

Section 1502. Manner of
Exercise of Convertible Privilege.

In
order to exercise the conversion privilege, the Holder of any Convertible
Security to be converted shall surrender such Convertible Security to the
Company at its office or agency, together with the conversion notice in the form
provided on the Securities (or separate written notice) duly executed, and, if
so required by the Company, accompanied by instruments of transfer, in form
satisfactory to the Company and to the Trustee, duly executed by the Holder or
by his duly authorized attorney in writing. Any Registered Convertible Security
so surrendered during the period from the close of business on the Regular
Record Date preceding an Interest Payment Date for such Registered Convertible
Security to the opening of business on such Interest Payment Date shall (unless
any such Registered Convertible Security or the portion thereof being converted
shall have been called for redemption on a Redemption Date during such period,
in which event no interest shall be payable with respect to such Registered
Convertible Security or portion thereof, as the case may be, following such
Redemption Date) also be accompanied by payment in Clearing House funds or other
funds acceptable to the Company of an amount equal to the interest payable on
such Interest Payment Date on the principal amount of such Registered
Convertible Security then being converted; provided, however, that no such
payment need be made if there shall exist, at the time of conversion, a default
in the payment of interest on the Convertible Securities of such series. Except
as provided in the immediately preceding sentence, no adjustment shall be made
for interest accrued on any Convertible Security that shall be converted or for
dividends on any shares of Common Stock that shall be delivered upon the
conversion of such Convertible Securities. The funds so delivered to such office
or agency shall be paid to the Company on or after such Interest Payment Date,
unless the Company shall default in the payment of the interest due on such
Interest Payment Date, in which event such funds shall be repaid to the Person
who delivered the same. As promptly as practicable after the surrender of any
Convertible Security for conversion as aforesaid, the Company shall deliver at
said office or agency to such Holder, or on his written order, a certificate or
certificates for the number of full shares deliverable upon the conversion of
such Convertible Security or portion thereof and a check or cash in respect of
any fraction of a share of Common Stock otherwise deliverable upon such
conversion, all as provided in this Article Fifteen, together with a Convertible
Security or Convertible Securities of the same series in principal amount equal
to the unconverted and unredeemed portion, if any, of the Convertible Security
so converted in accordance with Section 306 hereof. Such conversion shall be
deemed to have been effected on the date on which such notice shall have been
received at said office or agency and such Convertible Security shall have been
surrendered as aforesaid, and the Person or Persons in whose name or names any
certificate or certificates for shares of Common Stock shall be deliverable upon
such conversion shall be deemed to have become on said date the Holder or
Holders of record of the shares represented thereby, provided, however, that any
such surrender on any date when the stock transfer books of the Company shall be
closed shall constitute the Person or Persons in whose name or names the
certificates are to be delivered as the record Holder or Holders thereof for all
purposes on the next succeeding day on which such stock transfer books are open,
but such conversion shall be at the Conversion Price in effect on the date of
such surrender. 

53

Section 1503. Cash
Adjustment Upon Conversion.

The
Company shall not be required to deliver fractions of shares of Common Stock
upon conversions of Convertible Securities. If more than one Convertible
Security shall be surrendered for conversion at one time by the same Holder, the
number of full shares which shall be deliverable upon conversion thereof shall
be computed on the basis of the aggregate principal amount of the Securities so
surrendered. If any fractional interest in a share of Common Stock would be
deliverable upon the conversion of any Convertible Security or Securities, the
Company shall make an adjustment therefor in cash equal to the current market
value of such fractional interest computed to the nearest cent either on the
basis of the last reported sale price regular way of the Common Stock on the
Nasdaq Global Market (or, if not listed on the Nasdaq Global Market, then on
such other exchange on which the shares of Common Stock are listed as the
Company may designate) on the last Business Day prior to the Date of Conversion
or, if there shall not have been a sale on such last Business Day, on the basis
of the average of the bid and asked quotations therefor on such exchange on such
last Business Day or, if the Common Stock shall not then be listed on any
exchange, at the highest bid quotation in the over-the- counter market on such
last Business Day as reported by the National Association of Securities Dealers
through NASDAQ, its automated system for reporting quotes, or its successor or
such other generally accepted source of publicly reported bid and asked
quotations as the Company may reasonably designate.

Section 1504. Conversion
Price.

The
Conversion Price applicable to any series of Convertible Securities shall be the
initial Conversion Price set forth on the Officers’ Certificate or supplemental
indenture establishing such series adjusted as provided in this Article
Fifteen.

Section 1505. Adjustment of
Conversion Price.

The
Conversion Price applicable to any series of Convertible Securities shall be
adjusted from time to time as follows:

(a)
In case the Company shall, at any time or from time to time while the Securities
of any series are outstanding, (i) pay a dividend on its Common Stock in shares
of Common Stock, (ii) subdivide its outstanding shares of Common Stock into a
larger number of shares, or (iii) combine its outstanding Common Stock into a
smaller number of shares, the Conversion Price for such series in effect
immediately prior thereto shall be adjusted so that the Holder of any Security
of such series thereafter surrendered for conversion shall be entitled to
receive the number of shares of Common Stock or other securities of the Company
which he would have owned or have been entitled to receive after the happening
of any of the events described above, had such Convertible Security of such
series been converted immediately prior to the happening of such event. An
adjustment made pursuant to this subdivision (a) shall become effective, in the
case of a dividend, on the payment date retroactively to immediately after the
opening of business on the day following the record date for the determination
of shareholders entitled to receive such dividend, subject to the provisions of
paragraph (g) of this Section 1505, and shall become effective in the case of a
subdivision or combination immediately after the opening of business on the day
following the day when such subdivision or combination, as the case may be,
becomes effective.

54

(b)
In case the Company shall, at any time or from time to time while the
Convertible Securities of any series are outstanding, issue rights or warrants
to all holders of its shares of Common Stock entitling them (for a period
expiring within 45 days of the record date mentioned below) to subscribe for or
purchase shares of Common Stock at a price per share less than the current
market price per share of Common Stock (as defined in paragraph (d) below) at
such record date, the Conversion Price of any series of Convertible Securities
in effect immediately prior to the issuance of such rights or warrants shall be
adjusted as follows: the number of shares of Common Stock into which $1,000
principal amount of Convertible Securities of such series was theretofore
convertible shall be multiplied by a fraction, of which the numerator shall be
the number of shares of Common Stock outstanding immediately prior to such
record date plus the number of additional shares of Common Stock offered for
subscription or purchase, and of which the denominator shall be the number of
shares of Common Stock outstanding immediately prior to such record date plus
the number of shares which the aggregate offering price of the total number of
shares so offered would purchase at such current market price; and the
Conversion Price for such series of Convertible Securities shall be adjusted by
dividing $1,000 by the new number of shares into which $1,000 principal amount
of Securities of such series shall be convertible as aforesaid. Such adjustment
shall become effective on the date of such issuance retroactively to immediately
after the opening of business on the day following the record date for the
determination of shareholders entitled to receive such rights or warrants,
subject to the provisions of paragraph (g) of this Section 1505. In determining
whether any rights or warrants entitle the holders to subscribe for or purchase
shares of Common Stock at less than such current market price, and in
determining the aggregate offering price of such shares, there shall be taken
into account any consideration received by the Company for such rights or
warrants, the value of such consideration, if other than cash, to be determined
by the Board of Directors.

(c)
In case the Company shall, at any time from time to time while the Convertible
Securities of any series are outstanding, distribute to all holders of shares of
its Common Stock evidences of its indebtedness or securities or assets
(excluding cash dividends or cash distributions payable out of consolidated net
earnings or retained earnings) or rights or warrants to subscribe for shares of
Common Stock at a price per share less than the current market price per share
of Common Stock, determined in the manner set forth in paragraph (d) below, but
excluding rights or warrants referred to in paragraph (b) above, the Conversion
Price for such series of Convertible Securities in effect immediately prior to
such distribution shall be adjusted by multiplying the number of shares of
Common Stock into which $1,000 principal amount of Convertible Securities of
such series of Convertible Securities was theretofore convertible by a fraction,
of which the numerator shall be the current market price per share of Common
Stock (as defined in paragraph (d) below) on the record date for such
distribution, and of which the denominator shall be such current market price
per share of the Common Stock, less the then fair market value (as determined by
the Board of Directors of the Company, whose determination shall be conclusive)
of the portion of such evidences of indebtedness, securities or assets or of
such subscription rights or warrants so distributed applicable to one share of
Common Stock; and the Conversion Price for such series of Convertible Securities
shall be adjusted by dividing $1,000 by the new number of shares into which
$1,000 principal amount of Convertible Securities of such series shall be
convertible as aforesaid. Such adjustment shall become effective on the date of
such distribution retroactively to immediately after the opening of business on
the day following the record date for the determination of shareholders entitled
to receive such distribution, subject to the provisions of paragraph (g) of this
Section 1505. For the purposes of this paragraph (c) consolidated net earnings
or retained earnings shall be computed by adding thereto all charges against
retained earnings on account of dividends paid in shares of Common Stock in
respect of which the Conversion Price has been adjusted, all as determined by
Independent Public Accountants, whose determination shall be
conclusive.

(d)
For the purpose of any computation under paragraphs (b) and (c) above, the
current market price per share of Common Stock at any date shall be deemed to be
the average of the market values of the shares of Common Stock for the ten
consecutive Business Days immediately preceding the day in question. The market
value of the Common Stock for each day shall be determined as provided in
Section 1503 hereof.

(e)
The Company may make such reductions in the Conversion Price for any series of
Convertible Securities, in addition to those required by paragraphs (a), (b) and
(c) of this Section as it considers to be advisable in order that any event
treated for Federal income tax purposes as a dividend of stock or stock rights
shall not be taxable to the recipients.

55

(f)
Except as herein otherwise provided, no adjustment in the Conversion Price for
any series of Convertible Securities shall be made by reason of the issuance, in
exchange for cash, property or services, of shares of Common Stock, or any
securities convertible into or exchangeable for shares of Common Stock, or
carrying the right to purchase any of the foregoing.

(g)
If the Company shall take a record of the holders of its shares of Common Stock
for the purpose of entitling them to receive any dividend or any subscription or
purchase rights or any distribution and shall, thereafter and before the
distribution to shareholders of any such dividend, subscription or purchase
rights or distribution, legally abandon its plan to pay or deliver such
dividend, subscription or purchase rights or distribution, then no adjustment of
the Conversion Price for any series of Convertible Securities shall be required
by reason of the taking of such record.

(h)
No adjustment in the Conversion Price for any series of Convertible Securities
shall be required unless such adjustment would require an increase or decrease
of at least 1% in such price; provided, however, that any adjustments which by
reason of this paragraph (h) are not required to be made shall be carried
forward and taken into account in any subsequent adjustment. All calculations
under this Article Fifteen shall be made to the nearest cent or to the nearest
one-hundredth of a share, as the case may be.

(i)
Whenever the Conversion Price for any series of Convertible Securities is
adjusted as herein provided, the Company shall (i) forthwith place on file at
the Principal Office of the Trustee an Officers’ Certificate showing in detail
the facts requiring such adjustment and the Conversion Price after such
adjustment and shall exhibit the same from time to time to any Holder of
Convertible Securities of such series desiring an inspection thereof, and (ii)
cause a notice stating that such adjustment has been effected and the adjusted
Conversion Price to be mailed to the Holders of Registered Convertible
Securities of such series at their last addresses as they shall appear on the
Security Register.

(j)
The Company may delete, modify or vary any of the provisions applicable to
conversion of the Convertible Securities of any series, or may add new
provisions applicable thereto, all as may be contained in the Board Resolutions
and Officers’ Certificate or supplemental indenture establishing such
series.

Section 1506. Effect of
Reclassifications, Consolidations, Mergers or Sales on Conversion
Privilege.

In
case of any reclassification or change of outstanding shares of the class of
Common Stock issuable upon conversion of the Convertible Securities (other than
a change in par value, or from par value to no par value, or from no par value
to par value, or as a result of a subdivision or combination), or in case of any
merger or consolidation of the Company with one or more other corporations
(other than a merger or consolidation in which the Company is the continuing
corporation and which does not result in any reclassification or change of
outstanding shares of Common Stock issuable upon conversion of the Securities),
or in case of the merger of the Company into another corporation, or in case of
any sale or conveyance to another corporation of the property of the Company as
an entirety or substantially as an entirety, the Holder of Convertible
Securities then outstanding shall have the right to convert such Convertible
Security into the kind and amount of shares of capital stock or other securities
and property, including cash, receivable upon such reclassification, change,
consolidation, merger, sale or conveyance by a holder of the number of shares of
Common Stock into which such Convertible Security might have been converted
immediately prior to such reclassification, change, consolidation, merger, sale
or conveyance. In any such case the Company, or such successor or purchasing
corporation, as the case may be, shall execute with the Trustee one or more
supplemental indentures (which shall conform to the Trust Indenture Act of 1939
as in force at the date of the execution of such supplemental indenture)
containing provisions to the effect set forth above in this Section 1506 and
providing further for adjustments which shall be as nearly equivalent as may be
practicable to the adjustments provided for in this Article Fifteen; and any
such adjustment which shall be approved by the Board of Directors and set forth
in such supplemental indenture or supplemental indentures shall be conclusive
for all purposes of this Section, and the Trustee shall not be under any
responsibility to determine the correctness of any provision contained in such
supplemental indenture or supplemental indentures relating to either the kind or
amount of shares of stock or securities or property receivable by Holders of
Securities of any series upon the conversion of their Convertible Securities
after any such reclassification, change, consolidation, merger, sale or
conveyance.

56

The
above provisions of this Section 1506 shall similarly apply to successive
reclassifications, changes, consolidations, mergers, sales and
conveyances.

Section 1507. Taxes on
Conversions.

The
issue of stock certificates on conversions of Convertible Securities shall be
made without charge to the converting Holder of Convertible Securities for any
tax in respect of the issue thereof. 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 in any name other than that of the Holder of any
Registered Convertible Security converted, and the Company shall not be required
to issue or deliver any such stock certificate unless and until the Person or
Persons requesting the issue thereof shall have paid to the Company the amount
of such tax or shall have established to the satisfaction of the Company that
such tax has been paid.

Section 1508. Company to
Reserve Common Stock.

The
Company shall at all times reserve and keep available out of the aggregate of
its authorized but unissued shares or its issued shares held in its treasury, or
both, for the purpose of effecting the conversion of the Securities, such number
of its duly authorized shares of Common Stock as shall from time to time be
sufficient to effect the conversion of all outstanding Securities.

If
any shares of Common Stock reserved or to be reserved for the purpose of
conversion of Securities hereunder require registration with or approval of any
governmental authority under any Federal or State law before such shares may be
validly delivered upon conversion, then the Company covenants that it will in
good faith and as expeditiously as possible endeavor to secure registration or
approval, as the case may be.

The
Company covenants that all shares of Common Stock which may be delivered upon
conversion of Convertible Securities shall upon delivery be fully paid and
nonassessable by the Company and free from all taxes, liens and charges with
respect to the issue or delivery thereof.

Section 1509. Disclaimer by
Trustee of Responsibility for Certain Matters.

Neither the Trustee nor any conversion agent shall at any time be under
any duty or responsibility to any Holder of Convertible Securities of any series
to determine whether any facts exist which may require any adjustment of the
Conversion Price for such series, 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,
subject, however, to the provisions of Sections 315(a) through 315(b) of the
Trust Indenture Act. Neither the Trustee nor any conversion agent shall be
accountable with respect to the validity or value (or the kind or amount) of any
shares of Common Stock, or of any securities or property which may at any time
be issued or delivered upon the conversion of any Convertible Security; and
neither of them makes any representation with respect thereto. Neither the
Trustee nor any conversion agent shall be responsible for any failure of the
Company to make any cash payment or to issue, transfer or deliver any shares of
Common Stock or stock certificates or other securities or property upon the
surrender of any Security for the purpose of conversion or, subject to Sections
315(a) through 315(b) of the Trust Indenture Act, to comply with any of the
covenants of the Company contained in this Article Sixteen.

No
recourse may be taken with respect to the obligations of the Issuer or the
Trustee against the Trustee in its individual capacity.

57

Section 1510. Company to
Give Notice of Certain Events.

In
the event:

(1)
that the Company shall pay any dividend or make any distribution to the holders
of shares of Common Stock otherwise than in cash charged against consolidated
net earnings or retained earnings of the Company and its consolidated net earnings or retained earnings of
the Company and its consolidated subsidiaries or in Common Stock; or 

(2)
that the Company shall offer for subscription or purchase, pro rata, to the
holders of shares of Common Stock any additional shares of stock of any class or
any securities convertible into or exchangeable for stock of any class; or

(3)
of any reclassification or change in outstanding shares of the class of Common
Stock issuable upon the conversion of the Securities (other than a change in par
value, or from par value to no par value, or from no par value to par value, or
as a result of a subdivision or combination), or of any merger or consolidation
of the Company with, or merger of the Company into, another corporation (other
than a merger or consolidation in which the Company is the continuing
corporation and which does not result in any reclassification or change of
outstanding shares of Common Stock issuable upon conversion of the Securities),
or of any sale or conveyance to another corporation of the property of the
Company as an entirety or substantially as an entirety; 

then, and in any one or more
of such events, the Company will give to the Trustee and each conversion agent
written notice thereof at least fifteen days prior to (i) the record date fixed
with respect to any of the events specified in (1) and (2) above, and (ii) the
effective date of any of the events specified in (3) above; and shall mail
promptly a copy of such notice to the Holders of Registered Convertible
Securities at their last addresses as they shall appear upon the Security
Register. Failure to give such notice, or any defect therein, shall not affect
the legality or validity of such dividend, distribution, reclassification,
consolidation, merger, sale, transfer, dissolution, liquidation or winding up.

* * * * * 

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.

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

	SOUTHERN FIRST BANCSHARES, INC.
			 
		By:	
			 
		 	Name:
			 
			Title:
	 
	[                  
      ], not in its individual capacity but solely as
    Trustee
		 
		By:	
			 
			Name:
			 
			Title:

58Exhibit 4.6 

SOUTHERN FIRST BANCSHARES,
INC.

Issuer

to
 

___________________________________

[                
]

Trustee 

___________________________________

 

SUBORDINATED INDENTURE

 

Dated as
of               
, 20

 

Subordinated Debt Securities

 

 

 

 

 

1

TABLE OF CONTENTS

			      		     	Page
	ARTICLE ONE		DEFINITIONS AND OTHER PROVISIONS OF GENERAL
    APPLICATION		2
	                	Section 101.		Definitions		2
		Section 102.		Compliance Certificates and Opinions		8
		Section 103.		Form of Documents Delivered to
      Trustee		9
		Section 104.		Acts
      of Holders		9
		Section 105.		Notices, Etc., to Trustee and
      Company		11
		Section 106.		Notice to Holders		11
		Section 107.		Language of Notices		12
		Section 108.		Conflict With Trust Indenture Act		12
		Section 109.		Effect of Headings and Table of
      Contents		12
		Section 110.		Successors and Assigns		12
		Section 111.		Separability Clause		12
		Section 112.		Benefits Of Indenture		12
		Section 113.		Governing Law		12
		Section 114.		Legal Holidays		12
				 		
	ARTICLE TWO		SECURITIES FORMS		13
		Section 201.		Forms Generally		13
		Section 202.		Form of Trustee’s Certificate of
      Authentication		13
		Section 203.		Securities in Global Form		13
				 		
	ARTICLE THREE		THE SECURITIES		14
		Section 301.		Amount Unlimited, Issuable in Series		14
		Section 302.		Denominations		17
		Section 303.		Securities in Foreign Countries		17
		Section 304.		Execution, Authentication,
      Delivery and Dating		17
		Section 305.		Temporary Securities		18
		Section 306.		Registration, Transfer and
      Exchange		19
		Section 307.		Mutilated, Destroyed, Lost and Stolen Securities		21
		Section 308.		Payment of Interest; Interest
      Rights Preserved		22
		Section 309.		Persons Deemed Owners		23
		Section 310.		Cancellation		23
		Section 311.		Computation of Interest		23
		Section 312.		Cusip Numbers		23
				 		
	ARTICLE FOUR		SATISFACTION AND DISCHARGE		24
		Section 401.		Satisfaction and Discharge of
      Indenture		24
		Section 402.		Application of Trust Money		25
		Section 403.		Satisfaction, Discharge and
      Defeasance of Securities of Any Series		25
				 		
	ARTICLE FIVE		REMEDIES		27
		Section 501.		Events of Default		27
		Section 502.		Acceleration of Maturity; Rescission and Annulment		27
		Section 503.		Collection of Indebtedness and
      Suits For Enforcement By Trustee		28
		Section 504.		Trustee May File Proofs of Claim		29
		Section 505.		Trustee May Enforce Claims Without
      Possession of Securities or Coupons		29
		Section 506.		Application of Money Collected		29
		Section 507.		Limitations on Suits		30
		Section
      508.		Unconditional Right of Holders to Receive Principal, Premium,
      Interest and Additional Amounts		30

ii

	                	Section 509.	      	Restoration of Rights and Remedies		30
		Section 510.		Rights and Remedies
      Cumulative		30
		Section 511.		Delay or Omission Not Waiver		31
		Section 512.		Control By Holders		31
		Section 513.		Waiver of Past Defaults		31
		Section 514.		Waiver of Stay or Extension
      Laws		31
				 		
	ARTICLE SIX		THE
      TRUSTEE		32
		Section 601.		Notice of Defaults		32
		Section 602.		Certain Rights of Trustee		32
		Section 603.		Not Responsible for Recitals or
      Issuance of Securities		33
		Section 604.		May
      Hold Securities		33
		Section 605.		Money Held In Trust		33
		Section 606.		Compensation and Reimbursement		33
		Section 607.		Corporate Trustee required;
      Eligibility; Conflicting Interests		34
		Section 608.		Resignation and Removal; Appointment of
      Successor		34
		Section 609.		Acceptance of Appointment By
      Successor		35
		Section 610.		Merger, Conversion, Consolidation or Succession
      to Business		36
		Section 611.		Appointment of Authenticating
      Agent		36
				 		
	ARTICLE SEVEN	HOLDERS’ LISTS AND REPORTS BY TRUSTEE AND
      COMPANY		38
		Section 701.		Company to Furnish Trustee Names
      and Addresses of Holders		38
		Section 702.		Preservation of Information; Communications to
      Holders		38
		Section 703.		Reports By Trustee		38
		Section 704.		Reports By Company		39
				 		
	ARTICLE EIGHT	CONSOLIDATION, MERGER AND
      SALES		39
		Section 801.		Company May Consolidate Etc., Only on Certain
      Terms		39
		Section 802.		Successor Corporation Substituted
      For Company		40
				 		
	ARTICLEL NINE	SUPPLEMENTAL INDENTURES		40
		Section 901.		Supplemental Indentures Without
      Consent of Holders		40
		Section 902.		Supplemental Indentures With Consent of
      Holders		41
		Section 903.		Execution of Supplemental
      Indentures		42
		Section 904.		Effect of Supplemental Indentures		42
		Section 905.		Conformity With Trust Indenture
      Act		43
		Section 906.		Reference in Securities to Supplemental
      Indentures		43
		Section 907.		Subordination Unimpaired		43
				 		
	ARTICLE TEN		COVENANTS		43
		Section 1001.		Payment of Principal, Premium, If
      Any, and Interest		43
		Section 1002.		Maintenance of Office or Agency		43
		Section 1003.		Money For Securities Payments to
      Be Held in Trust		44
		Section 1004.		Additional Amounts		45
		Section 1005.		Statement As To Compliance; Notice
      of Certain Defaults		46
		Section 1006.		Payment of Taxes and Other Claims		46
		Section 1007.		Corporate Existence		46
		Section 1008.		Waiver of Certain Covenants		46
		Section 1009.		Calculation of Original Issue
      Discount		46
				 		
	ARTICLE ELEVEN	REDEMPTION OF SECURITIES		47
		Section 1101.		Applicability of Article		47
		Section 1102.		Election To Redeem; Notice To Trustee		47
		Section 1103.		Selection By Trustee of Securities
      To Be Redeemed		47

iii

	                	Section 1104.	      	Notice of Redemption	47
		Section 1105.		Deposit of Redemption Price	48
		Section 1106.		Securities Payable on Redemption Date	49
		Section 1107.		Securities Redeemed in Part	49
		Section 1108.		Conversion Arrangements on Call for Redemption	50
	 				
	ARTICLE TWELVE		SINKING FUNDS	50
		Section 1201.		Applicability of Article	50
		Section 1202.		Satisfaction of Sinking Fund Payments With
    Securities	50
		Section 1203.		Redemption of Securities For Sinking Fund	51
	 				
	ARTICLE THIRTEEN		REPAYMENT AT THE OPTION OF HOLDERS	51
		Section 1301.		Applicability of Article	51
	 				
	ARTICLE FOURTEEN		MEETINGS OF HOLDERS	51
		Section 1401.		Purposes for Which Meetings May Be Called	51
		Section 1402.		Call, Notice and Place of Meetings	51
		Section 1403.		Persons Entitled To Vote At Meetings	52
		Section 1404.		Quorum; Action	52
		Section 1405.		Determination of Voting Rights; Conduct and Adjournment of
      Meetings	52
		Section 1406.		Counting Votes and Recording Action of Meetings	53
		 			
	ARTICLE FIFTEEN		SUBORDINATION	53
		Section 1501.		Securities Subordinated To Senior Indebtedness	53
		Section 1502.		Subrogation	55
		Section 1503.		Obligation Of Company Unconditional	55
		Section 1504.		Payment On Securities Permitted	56
		Section 1505.		Effectuation Of Subordination by Trustee	56
		Section 1506.		Knowledge Of Trustee	56
		Section 1507.		Trustee’s Relation To Senior Indebtedness	56
		Section 1508.		Rights Of Holders Of Senior Indebtedness Not
    Impaired	57
		 			
	ARTICLE SIXTEEN		CONVERSION	57
		Section 1601.		Conversion Privilege	57
		Section 1602.		Manner of Exercise of Convertible Privilege	57
		Section 1603.		Cash
      Adjustment Upon Conversion	58
		Section 1604.		Conversion Price	58
		Section 1605.		Adjustment of Conversion Price	58
		Section 1606.		Effect of Reclassifications, Consolidations, Merges or Sales
      on Conversions	60
		Section 1607.		Taxes on Conversions	60
		Section 1608.		Company to Reserve Common Stock	61
		Section 1609.		Disclaimer by Trustee of Responsibility for Certain
      Matters	61
		Section 1610.		Company to Give Notice of Certain Events	61

iv

SOUTHERN FIRST
BANCSHARES, INC. 

Reconciliation and tie between
Trust Indenture Act of 1939, as amended, and Subordinated Indenture, dated as
of            , 20 .

	Trust Indenture Act Section	 	      	Indenture Section
	 
	Section 310(a) (1)		607
	             
      (a) (2)		607
	             
      (a) (5)		607
	             
      (b)		607
	Section 311(a)		604
	             
      (b)		604
	             
      (b) (2)		108
	Section 312(a)		701, 702(a)
	             
      (b)		702(a)
	             
      (c)		702(b)
	Section 313(a)		703(a), 703(b)
	             
      (b) (2)		108
	             
      (c)		703(c)
	             
      (d)		703(c)
	Section 314(a)		704
	             
      (c) (1)		102
	             
      (c) (2)		102
	             
      (c) (3)		108
	             
      (e)		102
	Section 315(a)		108
	             
      (b)		601
	             
      (c)		108
	             
      (d)		108
	             
      (d) (1)		108
	             
      (d) (2)		108
	             
      (d) (3)		108
	             
      (e)		108
	Section 316(a)		104
	             
      (a) (1) (A)		512
	             
      (a) (1) (B)		513
	             
      (b)		508
	             
      (c)		104
	Section 317(a) (1)		505
	             
      (a) (2)		504
	             
      (b)		1003
	Section 318(a)		108

Note: This reconciliation and
tie shall not, for any purpose, be deemed to be a part of this Subordinated
Indenture. 

1

SUBORDINATED INDENTURE, dated
as
of                 
, 20 (the “Indenture”), is made by and between SOUTHERN FIRST BANCSHARES, INC.,
a corporation duly organized and existing under the laws of the State of South
Carolina (the “Company”), having its principal office at 100 Verdae Boulevard,
Suite 100, Greenville, South Carolina 29607 and
[                 
], having its principal office at
[                 
], not in its individual capacity but solely as Trustee (the “Trustee”).

RECITALS 

The
Company has duly authorized the execution and delivery of this Indenture to
provide for the issuance from time to time of its unsecured subordinated
debentures, notes or other evidences of indebtedness (the “Securities”),
unlimited as to principal amount, to bear such rates of interest, to mature at
such time or times, to be issued in one or more series and to have such other
provisions as shall be fixed as hereinafter provided. 

The
Company has duly authorized the execution and delivery of this Indenture and all
things necessary to make this Indenture a valid agreement of the Company, in
accordance with its terms, have been done. 

This
Indenture is subject to the provisions of the Trust Indenture Act of 1939, as
amended, that are required to be part of this Indenture and shall, to the extent
applicable, be governed by such provisions. 

NOW, THEREFORE, THIS
INDENTURE WITNESSETH: 

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

ARTICLE
ONE

DEFINITIONS AND OTHER
PROVISIONS OF GENERAL APPLICATION

Section 101. Definitions 

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

	       
    	(1)	      
    	the terms
      defined in this Article have the meanings assigned to them in this
      Article, and include the plural as well as the
    singular;
 
		(2)		all other
      terms used herein which are defined in the Trust Indenture Act, either
      directly or by reference therein, have the meanings assigned to them
      therein;
 
		(3)		all
      accounting terms not otherwise defined herein have the meanings assigned
      to them in accordance with generally accepted accounting principles and,
      except as otherwise herein expressly provided, the term “generally
      accepted accounting principles” with respect to any computation required
      or permitted hereunder shall mean such accounting principles as are
      generally accepted at the date of such computation;
 
		(4)		the words
      “herein”, “hereof”, “hereto” 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;
 
		(5)		the word
      “or” is not exclusive;
 
		(6)		all words
      in the singular include the plural and all words in the plural include the
      singular; and
 
		(7)		the word
      “including” means “including without
limitations.”

2

Certain terms used principally in certain Articles hereof are defined in
those Articles. 

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

“Additional
Amounts” means any additional
amounts which are required hereby or by any Security, under circumstances
specified herein or therein, to be paid by the Company in respect of certain
taxes imposed on Holders specified therein and which are owing to such Holders.

“Affiliate” of any specified Person means any other Person
directly or indirectly controlling or controlled by or under direct or indirect
common control with such specified Person. For 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 the meanings correlative to
the foregoing. 

“Authenticating
Agent” means any Person
authorized by the Trustee pursuant to Section 611 to act on behalf of the
Trustee to authenticate Securities of one or more series. 

“Authorized
Newspaper” means a newspaper, in
an official language of the country of publication or in the English language,
customarily published on each Business Day, whether or not published on Legal
Holidays, and of general circulation in each place in connection with which the
term is used or in the financial community of each such place. Where successive
publications are required to be made in Authorized Newspapers the successive
publications may be made in the same or in different newspapers in the same city
meeting the foregoing requirements and in each case on any Business Day.

“Bank” means (i) any institution organized under the
laws of the United States, any State of the United States, the District of
Columbia, any territory of the United States, Puerto Rico, Guam, American Samoa
or the Virgin Islands which (a) accepts deposits that the depositor has a legal
right to withdraw on demand, and (b) engages in the business of making
commercial loans and (ii) any trust company organized under any of the foregoing
laws. 

“Bearer
Security” means any Security in
the form established pursuant to Section 201 which is payable to bearer.

“Board Of
Directors” means the board of
directors of the Company or any committee of that board duly authorized to act
for the Company hereunder. 

“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, or a duly authorized
committee thereof, and to be in full force and effect on the date of such
certification, and delivered to the Trustee. 

“Business
Day” except as may otherwise be
provided herein or in any Security, means any day, other than a Saturday or a
Sunday, that is neither a Legal Holiday nor a day on which banking institutions
are authorized or required by law, regulation or executive order to close.

“Called
Securities” means any Convertible
Security that is called for redemption by the Company. 

“Capital
Stock” means, as to shares of a
particular corporation, outstanding shares of stock of any class whether now or
hereafter authorized, irrespective of whether such class shall be limited to a
fixed sum or percentage in respect of the rights of the holders thereof to
participate in dividends and in the distribution of assets upon the voluntary
liquidation, dissolution or winding up of such corporation. 

“Commission” means the Securities and Exchange Commission, as
from time to time constituted, created under the Securities Exchange Act of 1934
or, if at any time after the execution of this Indenture 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. 

3

“Common
Stock” means all shares now or
hereafter authorized of the class of common stock of the Company presently
authorized and stock of any other class into which such shares may hereafter
have been changed. 

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

“Company
Request” and “Company Order” mean
a written request or order, as the case may be, signed in the name of the
Company by the Chairman of the Board of Directors, a Vice Chairman, 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. 

“Subsidiary
Bank” means any Subsidiary which
is a Bank. 

“Convertible
Security” or “Convertible
Securities” means any Security or Securities, as the case may be, which are by
their terms convertible into Common Stock. 

“Conversion
Price” means the price per share
of Common Stock from time to time in effect at which any Convertible Security
may be converted into Common Stock as determined by or pursuant to the terms of
this Indenture. 

“Corporate Trust
Office” means, the principal
office of the Trustee, at which at any particular time its corporate trust
business shall be administered, which office at the date of original execution
of this Indenture is located at [                            ]. 

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

“Coupon” means any interest coupon appertaining to a
Bearer Security. 

“Date of
Conversion” with respect to any
Convertible Security or portion thereof to be converted, means the date on which
such Convertible Security shall be surrendered for conversion and notice given
in accordance with the provisions of Article Sixteen. 

“Defaulted
Interest” has the meaning
specified in Section 308. 

“Dollars” or “$” means a dollar or other equivalent unit
in the currency of the United States, except as may otherwise be provided herein
or in any Security. 

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

“Government
Obligations”, with respect to any
Securities unless otherwise specified herein or therein, means (i) direct
obligations of the United States of America or the government or governments
which issued the currency, currency unit or composite currency in which any
Securities are payable, for the payment of which its full faith and credit is
pledged or (ii) obligations of a Person controlled or supervised by and acting
as an agency or instrumentality of the United States of America or such
government or governments which issued the currency, currency unit or composite
currency in which such Securities are payable, the payment of which is
unconditionally guaranteed as a full faith and credit obligation by the United
States of America or such other government or governments, which, in either
case, are not callable or redeemable at the option of the issuer or issuers
thereof, and shall also include a depository receipt issued by a bank or trust
company as custodian with respect to any such Government Obligation or a
specific payment of interest on or principal of any such Government Obligation
held by such custodian for the account of the holder of a depository receipt,
PROVIDED that (except as required by law) such custodian is not authorized to
make any deduction from the amount payable to the holder of such depository
receipt from any amount received by the custodian in respect of the Government
Obligation or the specific payment of interest on or principal of the Government
Obligation evidenced by such depository receipt.  

4

“Holder”, in the case of any Registered Security, means
the Person in whose name such Security is registered in the Security Register
and, in the case of any Bearer Security, means the bearer thereof and, in the
case of any Coupon, means the bearer thereof. 

“Indenture” means this instrument as originally executed or
as it may from time to time be supplemented or amended by one or more indentures
supplemental hereto entered into pursuant to the applicable provisions hereof,
and with respect to any Security shall include the terms of such Securities
established as contemplated by Section 301; PROVIDED, HOWEVER, that, if at any
time more than one Person is acting as Trustee under this instrument,
“INDENTURE” shall mean, with respect to any one or more series of Securities for
which such Person is Trustee, this instrument as originally executed or as it
may from time to time be supplemented or amended by one or more indentures
supplemental hereto entered into pursuant to the applicable provisions hereof
and shall include the terms of the or those particular series of Securities for
which such Person is Trustee established as contemplated by Section 301,
exclusive, however, of any provisions or terms which relate solely to other
series of Securities for which such Person is Trustee, regardless of when such
terms or provisions were adopted, and exclusive of any provisions or terms
adopted by means of one or more indentures supplemental hereto executed and
delivered after such Person had become such Trustee but to which such Person, as
such Trustee, was not a party. 

“Independent Public
Accountants” means accountants or
a firm of accountants that are independent public accountants with respect to
the Company within the meaning of the Securities Act of 1933, as amended, and
the rules and regulations promulgated by the Commission thereunder who may be
the independent public accountants regularly retained by the Company or who may
be other independent public accountants. Such accountants or firm shall be
entitled to rely upon any Opinion of Counsel as to the interpretation of any
legal matters relating to the Indenture or certificates required to be provided
hereunder. 

“Interest”, with respect to any Original Issue Discount
Security which by its terms bears interest only after Maturity, means interest
payable after Maturity and, with respect to any Security which provides for the
payment of Additional Amounts pursuant to Section 1004, includes such Additional
Amounts. 

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

“Legal
Holiday”, except as otherwise may
be provided herein or in any Securities, with respect to any Place of Payment or
other location, means a Saturday, a Sunday or a day on which banking
institutions or trust companies in such Place of Payment or other location are
not authorized or obligated to be open. 

“Maturity”, 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, notice of redemption, notice of option to elect
repayment or otherwise. 

“Officers’
Certificate” means a certificate
signed by the Chairman of the Board, a Vice Chairman, 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. 

“Opinion Of
Counsel,” except as otherwise
provided herein or in any Security, means a written Opinion of Counsel, who may
be an employee of or counsel for the Company or other counsel. 

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

5

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

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

(ii)
Securities, or portions thereof for whose payment or redemption or repayment at
the option of the Holder 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 and any Coupons
appertaining thereto, PROVIDED that, if such Securities are to be redeemed,
notice of such redemption has been duly given pursuant to this Indenture or
provision therefor satisfactory to the Trustee has been made; 

(iii) Securities, except to the extent provided in Section 403, with
respect to which the Company has effected defeasance and/or covenant defeasance
pursuant to Section 403 hereof; and 

(iv)
Securities which have been paid pursuant to Section 307 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 Outstanding Securities
have given any request, demand, authorization, direction, notice, consent or
waiver hereunder or are present at a meeting of Holders of Securities for quorum
purposes and for purposes of making the calculations required by Section 313 of
the Trust Indenture Act, (i) the principal amount of an Original Issue Discount
Security that may be counted in making such determination or calculation and
that shall be deemed to be outstanding for such purposes shall be equal to the
amount of the principal thereof that pursuant to the terms of such Original
Issue Discount Security would be declared (or shall have been declared to be)
due and payable upon a declaration of acceleration pursuant to Section 502 at
the time of such determination or calculation, and (ii) the principal amount of
any Security denominated other than in Dollars that may be counted in making
such determination or calculation and that shall be deemed outstanding for such
purpose shall be equal to the Dollar equivalent, determined by the Company as of
the date such Security is originally issued by the Company, of the principal
amount (or, in the case of an Original Issue Discount Security, the Dollar
equivalent as of such date of original issuance of the amount determined as
provided in clause (i) above) of such Security, and (iii) Securities owned by
the Company or any other obligor upon the Securities or any Affiliate of the
Company or such other obligor, shall be disregarded and deemed not to be
Outstanding, except that, in determining whether the Trustee shall be protected
in making any such calculation or 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 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 such
other obligor. 

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

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

“Place Of
Payment”, with respect to any
Security, means the place or places where the principal of (and premium, if any)
and interest on the Securities of that series are payable as specified in or
pursuant to Section 301(9) or Section 1002. 

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

6

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

“Redemption
Price”, with respect to any
Security or portion thereof to be redeemed, means the price at which it is to be
redeemed as determined by or pursuant to the provisions of this Indenture.

“Registered
Security” means any Security
established pursuant to Section 201 which is registered and the transfer or
exchange thereof is registrable in the Security Register. 

“Regular Record
Date” for the interest payable on
any Registered Security on any Interest Payment Date therefor means the date, if
any, specified in such Security as the “Regular Record Date”. 

“Responsible
Officer” when used with respect
to the Trustee means any officer within the corporate trust department of the
Trustee, including the vice president, any assistant vice president, assistant
treasurer, or any other officer of the Trustee who customarily performs
functions similar to those performed by the Persons who at the time shall be
such officers, respectively, or to whom any corporate trust matter is referred
because of such person’s knowledge of and familiarity with the particular
subject and who shall have direct responsibility for the administration of this
Indenture.

“Security” or
“Securities” means any Security
or Securities, as the case may be, authenticated and delivered under this
Indenture; PROVIDED, HOWEVER, that if at any time there is more than one Person
acting as Trustee under this Indenture, “Securities” with respect to the
Indenture as to which such Person is Trustee shall have the meaning stated in
the first recital of this Indenture and shall more particularly mean Securities
authenticated and delivered under this Indenture, exclusive, however, of
Securities of any series as to which such Person is not Trustee. 

“Security
Register” and “Security
Registrar” have the respective meanings specified in Section 306. 

“Senior
Indebtedness” means: (i) the
principal and any premium or interest for money borrowed or purchased by the
Company; (ii) the principal and any premium or interest for money borrowed or
purchased by another Person and guaranteed by the Company; (iii) any deferred
obligation for the payment of the purchase price of property or assets evidenced
by a note or similar agreement; (iv) an obligation arising from direct credit
substitutes; and (v) any obligation associated with derivative products such as
interest and foreign exchange rate contracts, commodity contracts and similar
arrangements; in each case, whether outstanding on the date this Subordinated
Indenture becomes effective, or created, assumed or incurred after that date.
Senior Indebtedness excludes any indebtedness that: (a) expressly states that it
is junior to, or ranks equally in right of payment with, the Securities; or (b)
is identified as junior to, or equal in right of payment with, the Securities in
any Board Resolution or in any supplemental indenture. 

“Special Record
Date” for the payment of any
Defaulted Interest on any registered Security means a date fixed by the Trustee
pursuant to Section 308. 

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

“Subsidiary” means any corporation of which at the time of
determination the Company and/or one or more Subsidiaries owns or controls
directly or indirectly more than 50% of the shares of Voting Stock. 

“Trust Indenture
Act” means the Trust Indenture
Act of 1939 as in force at the date as of which this instrument was executed,
except as provided in Section 905. 

7

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

“United States”, except as otherwise provided herein or in any
Security, means the United States of America (including the States
and the District of Columbia), its territories and possessions and other areas
subject to its jurisdiction. 

“United States Alien”, except as otherwise provided herein or in any
Security, means any Person who, for United States Federal income tax purposes,
is a foreign corporation, a non-resident alien individual, a non-resident alien
fiduciary of a foreign estate or trust, or a foreign partnership one or more of
the members of which is, for United States Federal income tax purposes, a
foreign corporation, a non-resident alien individual or a non-resident alien
fiduciary of a foreign estate or trust. 

“U.S. Depository” or “Depository” means, with respect to any
Security issuable or issued in the form of one or more global Securities, the
Person designated as U.S. Depository by the Company pursuant to Section 301,
which must be a clearing agency registered under the Securities Exchange Act of
1934, as amended, and, if so provided pursuant to Section 301 with respect to
any Security, any successor to such Person. If at any time there is more than
one such Person, “U.S. Depository” or “Depository” shall mean, with respect to
any Securities, the qualifying entity which has been appointed with respect to
such Securities. 

“Vice President”, 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”. 

“Voting Stock” means stock of a corporation of the class or
classes having general voting power under ordinary circumstances to elect at
least a majority of the board of directors, managers or trustees of such
corporation provided that, for the purposes hereof, stock which carries only the
right to vote conditionally on the happening of an event shall not be considered
voting stock whether or not such event shall have happened. 

Section 102. Compliance
Certificates and Opinions. 

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

Every certificate or opinion
with respect to compliance with a condition or covenant provided for in this
Indenture and in any applicable Security (except Section 1005) shall include:

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

8

Section 103. Form of
Documents Delivered to Trustee. 

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

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

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 or
any Security, they may, but need not, be consolidated and form one instrument.

Section 104. Acts of
Holders. 

(a) Any request, demand,
authorization, direction, notice, consent, waiver or other action provided by
this Indenture to be given or taken by Holders may be embodied in and evidenced
by one or more instruments of substantially similar tenor signed by such Holders
in person or by agent duly appointed in writing. If, but only if, Securities of
a series are issuable as Bearer Securities, any request, demand, authorization,
direction, notice, consent, waiver or other action provided by this Indenture to
be given or taken by Holders of Securities of such series may, alternatively, be
embodied in and evidenced by the record of Holders of Securities of such series
voting in favor thereof, either in person or by proxies duly appointed in
writing, at any meeting of Holders of Securities of such series duly called and
held in accordance with the provisions of Article Fourteen, or a combination of
such instruments and any such record. Except as herein otherwise expressly
provided, such action shall become effective when such instrument or instruments
or record or both are delivered to the Trustee and, where it is hereby expressly
required, to the Company. Such instrument or instruments and any such record
(and the action embodied therein and evidenced thereby) are herein sometimes
referred to as the “Act” of the Holders signing such instrument or instruments
and so voting at any such meeting. Proof of execution of any such instrument or
of a writing appointing any such agent, or of the holding by any Person of a
Security, shall be sufficient for any purpose of this Indenture and (subject to
Section 315 of the Trust Indenture Act) conclusive in favor of the Trustee and
the Company and any agent of the Trustee or the Company, if made in the manner
provided in this Section. The record of any meeting of Holders of Securities
shall be proved in the manner provided in Section 1406. 

Without limiting the
generality of this Section 104, unless otherwise established in or pursuant to a
Board Resolution or set forth or determined in an Officers’ Certificate, or
established in one or more indentures supplemental hereto, pursuant to Section
301, a Holder, including a U.S. Depository that is a Holder of a global
Security, may make, give or take, by a proxy, or proxies, duly appointed in
writing, any request, demand, authorization, direction, notice, consent, waiver
or other action provided in this Indenture to be made, given or taken by
Holders, and a U.S. Depository that is a Holder of a global Security may provide
its proxy or proxies to the beneficial owners of interests in any such global
Security through such U.S. Depository’s standing instructions and customary
practices. 

9

The Trustee shall fix a record
date, which shall be not more than 30 days prior to the first solicitation of
such Holders, for the purpose of determining the Persons who are beneficial
owners of interest in any permanent global Security held by a U.S. Depository
entitled under the procedures of such U.S. Depository to make, give or take, by
a proxy or proxies duly appointed in writing, any request, demand,
authorization, direction, notice, consent, waiver or other action provided in
this Indenture to be made, given or taken by Holders. If such a record date is
fixed, the Holders on such record date or their duly appointed proxy or proxies,
and only such Persons, shall be entitled to make, give or take such request,
demand, authorization, direction, notice, consent, waiver or other action,
whether or not such Holders remain Holders after such record date. No such
request, demand, authorization, direction, notice, consent, waiver or other
action shall be valid or effective if made, given or taken more than 90 days
after such record date. 

(b) The fact and date of the
execution by any Person of any such instrument or writing may be proved in any
reasonable manner which the Trustee deems sufficient and in accordance with such
reasonable rules as the Trustee may determine; and the Trustee may in any
instance require further proof with respect to any of the matters referred to in
this Section. 

(c) The ownership, principal
amount and serial numbers of Registered Securities held by any Person, and the
date of the commencement and the date of termination of holding the same, shall
be proved by the Security Register. 

(d) The ownership, principal
amount and serial numbers of Bearer Securities held by any Person, and the date
of the commencement and the date of termination of holding the same, may be
proved by the production of such Bearer Securities or by a certificate executed,
as depositary, by any Bank, banker or other depositary reasonably acceptable to
the Company, wherever situated, if such certificate shall be deemed by the
Trustee to be satisfactory, showing that at the date therein mentioned such
Person had on deposit with such depositary, or exhibited to it, the Bearer
Securities therein described; or such facts may be proved by the certificate or
affidavit of the Person holding such Bearer Securities, if such certificate or
affidavit is deemed by the Trustee to be satisfactory. The Trustee and the
Company may assume that such ownership of any Bearer Security continues until
(1) another certificate or affidavit bearing a later date issued in respect of
the same Bearer Security is produced, or (2) such Bearer Security is produced to
the Trustee by some other Person, or (3) such Bearer Security is surrendered in
exchange for a Registered Security, or (4) such Bearer Security is no longer
Outstanding. The principal amount and serial numbers of Bearer Securities held
by the Person so executing such instrument or writing and the date of the
commencement and the date of termination of holding the same may also be proved
in any other manner which the Trustee deems sufficient. 

(e) If the Company shall
solicit from the Holders of any Registered Securities any request, demand,
authorization, direction, notice, consent, waiver or other Act, the Company may
at its option, by Board Resolutions, fix in advance a record date, which shall
be not more than 30 days prior to the first solicitation of such Holders, for
the determination of Holders of Registered Securities entitled to give such
request, demand, authorization, direction, notice, consent, waiver or other Act,
but the Company shall have no obligation to do so. 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 Registered Securities 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 Outstanding Securities have authorized or agreed or
consented to such request, demand, authorization, direction, notice, consent,
waiver or other Act, and for that purpose the Outstanding Securities shall be
computed as of such record date; provided no such authorization, agreement or
consent of the Holders of Registered Securities shall be deemed effective unless
it shall become effective pursuant to the provisions of this Indenture not later
than six months after the record date. 

(f) Any request, demand,
authorization, direction, notice, consent, waiver or other action by 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 or suffered to
be done by the Trustee, any Security Registrar, any Paying Agent or the Company
in reliance thereon, whether or not notation of such action is made upon such
Security. 

10

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

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

(1) the Trustee by any Holder
or by the Company shall be sufficient for every purpose hereunder if made,
given, furnished or filed in writing to or with the Trustee at its Corporate
Trust Office, 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 the attention of its Treasurer at
the address of its principal office specified in the first paragraph of this
Indenture or at any other address previously furnished in writing to a
Responsible Officer of the Trustee by the Company. 

Section 106. Notice to
Holders; Waiver. 

Except as otherwise expressly
provided herein or in any Security, where this Indenture provides for notice to
Holders of any event, 

(1) such notice shall be
sufficiently given to Holders of Registered Securities if in writing and mailed,
first-class postage prepaid, to each Holder of a Registered Security affected by
such event, at his address as it appears in the Security Register, not later
than the latest date, and not earlier than the earliest date, prescribed for the
giving of such Notice; and 

(2) such notice shall be
sufficiently given to Holders of Bearer Securities, if any, if published in an
Authorized Newspaper and, if such Securities are then listed on any stock
exchange outside the United States, in an Authorized Newspaper in such city as
the Company shall advise the Trustee that such stock exchange so requires, on a
Business Day at least twice, the first such publication to be not earlier than
the earliest date and not later than the latest date prescribed for the giving
of such notice. 

In any case where notice to
Holders of Registered Securities is given by mail, neither the failure to mail
such notice, nor any defect in any notice so mailed, to any particular Holder of
a Registered Security shall affect the sufficiency of such notice with respect
to other Holders of Registered Securities or the sufficiency of any notice to
Holders of Bearer Securities given as provided herein. Any notice which is
mailed in the manner herein provided shall be conclusively presumed to have been
duly given or provided. In the 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.

In case by reason of the
suspension of publication of any Authorized Newspaper or Authorized Newspapers
or by reason of any other cause it shall be impracticable to publish any notice
to Holders of Bearer Securities as provided above, then such notification to
Holders of Bearer Securities as shall be given with the approval of the Trustee
shall constitute sufficient notice to such Holders for every purpose hereunder.
Neither failure to give notice by publication to Holders of Bearer Securities as
provided above, nor any defect in any notice so published, shall affect the
sufficiency of any notice mailed to Holders of Registered Securities as provided
above. 

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.

11

Section 107. Language of
Notices. 

Any request, demand,
authorization, direction, notice, consent, election or waiver required or
permitted under this Indenture shall be in the English language, except that, if
the Company so elects, any published notice may be in an official language of
the country of publication. 

Section 108. Conflict With
Trust Indenture Act. 

If any provision hereof
limits, qualifies or conflicts with the duties imposed pursuant to Section
318(c) of the Trust Indenture Act, such imposed duties shall control.

Section 109. Effect of
Headings and Table of Contents. 

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

Section 110. 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 111. Separability
Clause. 

In case any provision in this
Indenture, any Security or any Coupon 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 112. Benefits Of
Indenture. 

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

Section 113. Governing Law.

This Indenture, the Securities
and the Coupons shall be governed by and construed in accordance with the laws
of the State of New York applicable to agreements made or instruments entered
into and, in each case, performed in said state. 

Section 114. Legal
Holidays. 

In any case where any Interest
Payment Date, Redemption Date or Stated Maturity of any Security, or the last
day on which a Holder has the right to convert these Securities, is not a
Business Day at any Place of Payment, then (notwithstanding any other provision
of this Indenture, any Security or Coupon other than a provision in any Security
or any Coupon that specifically states that such provision shall apply in lieu
of this Section) payment of interest or any Additional Amounts 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 the last such day
of conversion, and no interest shall accrue on the amount so payable for the
period from and after such Interest Payment Date, Redemption Date or Stated
Maturity, as the case may be. 

12

ARTICLE TWO

SECURITIES FORMS

Section 201. Forms
Generally. 

Each Registered Security,
Bearer Security, Coupon and temporary global Security issued pursuant to this
Indenture shall be in the form established by or pursuant to a Board Resolution
or in one or more indentures supplemental hereto, shall have appropriate
insertions, omissions, substitutions and other variations as are required or
permitted by this Indenture or any indenture supplemental hereto and may have
such letters, numbers or other marks of identification and such legends or
endorsements placed thereon as may, consistently herewith, be determined by the
officers executing such Security, as evidenced by their execution of such
Security. 

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

Section 202. Form of
Trustee’s Certificate of Authentication. 

Subject to Section 611, the
Trustee’s certificate of authentication shall be in substantially the following
form: 

This certificate represents
Securities of the series designated therein referred to in the within-mentioned
Indenture. 

	Dated:	[                              
      ],
		not in its
      individual capacity but solely
		as
      Trustee
	 
	 
		By:	 
		Authorized Signatory

Section 203. Securities in
Global Form. 

If Securities of a series are
issuable in global form, any such Security may provide that it shall represent
the aggregate amount of Outstanding Securities of such series from time to time
endorsed thereon and may also provide that the aggregate amount of Outstanding
Securities represented thereby may from time to time be increased or reduced to
reflect exchanges. Any endorsement of any Security in global form to reflect the
amount, or any increase or decrease in the amount, or changes in the rights of
Holders, of Outstanding Securities represented thereby shall be made in such
manner and by such Person or Persons as shall be specified therein or in the
Company Order to be delivered pursuant to Section 304 or 305 with respect
thereto. Subject to the provisions of Section 304 and, if applicable, Section
305, the Trustee shall deliver and redeliver any Security in permanent global
form in the manner and upon instructions given by the Person or Persons
specified therein or in the applicable Company Order. If a Company Order
pursuant to Section 304 or 305 has been, or simultaneously is, delivered, any
instructions by the Company with respect to a Security in global form shall be
in writing but need not comply with Section 102 and need not be accompanied by
an Opinion of Counsel. 

The provisions of the
immediately preceding sentence shall apply to any Security represented by a
Security in global form if such Security was never issued and sold by the
Company and the Company delivers to the Trustee the Security in global form
together with written instructions (which need not comply with Section 102 and
need not be accompanied by an Opinion of Counsel) with regard to the reduction
in the principal amount of Securities represented thereby. 

Notwithstanding the provisions
of Section 308, unless otherwise specified as contemplated by Section 301,
payment of principal of and any premium and interest on any Security in
permanent global form shall be made to the Person or Persons specified therein.

13

Notwithstanding the provisions
of Section 309, and except as provided in the preceding paragraph, the Company,
the Trustee and any agent of the Company and the Trustee shall treat as the
Holder of such principal amount of Outstanding Securities represented by a
permanent global Security (i) in the case of a permanent global Security in
registered form, the Holder of such permanent global Security in registered
form, or (ii) in the case of a permanent global Security in bearer form, the
Person or Persons specified pursuant to Section 301. 

ARTICLE THREE

THE SECURITIES

Section 301. Amount
Unlimited; Issuable in Series. 

The aggregate principal amount
of Securities which may be authenticated and delivered under this Indenture is unlimited. The
Securities shall be subordinated in right of payment to Senior Indebtedness as
provided in Article Fifteen. 

The Securities may be issued
in one or more series. There shall be established in or pursuant to one or more
Board Resolutions, and set forth in an Officers’ Certificate, or established in
one or more indentures supplemental hereto, 

	       	(1)	       	the title of the
      Securities and the series in which such Securities shall be
      included;
		 
		(2)		any limit upon the
      aggregate principal amount of the Securities of such title or the
      Securities of such 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 305, 306, 307, 906, 1107 or
      1502 or the terms of such Securities);
		 
		(3)		whether Securities of
      the series are to be issuable as Registered Securities, Bearer Securities
      or both and, if the Securities are to be issuable exclusively or
      alternatively as Bearer Securities, whether the Bearer Securities are to
      be issuable with Coupons, without Coupons or both, and any restrictions
      applicable to the offer, sale delivery or conversion of the Bearer
      Securities and the terms, if any, upon which Bearer Securities may be
      exchanged for Registered Securities and vice versa;
		 
		(4)		whether any
      Securities of the series are to be issuable initially or otherwise in
      global form and, if so, (i) whether beneficial owners of interests in any
      such global Security may exchange such interest for Securities of such
      series and of like tenor of any authorized form and denomination and the
      circumstances under which any such exchanges may occur, if other than in
      the manner specified in Section 306, (ii) the name of the depository or
      the U.S. Depository, as the case may be, with respect to any global
      Security and (iii) the manner in which interest payable on a global
      Security will be paid;
		 
		(5)		the date as of which
      any Bearer Securities of the series and any global Security representing
      Outstanding Securities of the series shall be dated if other than the date
      of original issuance of the first Security of the series to be
      issued;
		 
		(6)		if Securities of the
      series are to be issuable as Bearer Securities, whether interest in
      respect of any portion of a temporary Bearer Security in global form
      (representing all of the Outstanding Bearer Securities of the series)
      payable in respect of an Interest Payment Date prior to the exchange of
      such temporary Bearer Security for definitive Securities of the series
      shall be paid to any clearing organization with respect to the portion of
      such temporary Bearer Security held for its account and, in such event,
      the terms and conditions (including any certification requirements) upon
      which any such interest payment received by a clearing organization will
      be credited to the Persons entitled to interest payable on such Interest
      Payment Date;

14

	       	(7)	       	the date or dates, or
      the method, if any, by which such date or dates shall be determined, on
      which the principal of such Securities is payable;
	 	
		(8)		the rate or rates at
      which such Securities shall bear interest, if any, or the method, if any,
      by which such rate or rates are to be determined, the date or dates, if
      any, from which such interest shall accrue or the method, if any, by which
      such date or dates are to be determined, the Interest Payment Dates, if
      any, on which such interest shall be payable and the Regular Record Date,
      if any, for the interest payable on Registered Securities on any Interest
      Payment Date, whether and under what circumstances Additional Amounts on
      such Securities or any of them shall be payable, and the basis upon which
      interest shall be calculated if other than that of a 360-day year of
      twelve 30-day months;
	 	
	 	(9)		the place or places,
      if any, where the principal of (and premium, if any) and interest
      (including Additional Amounts), if any, on such Securities shall be
      payable, any Registered Securities of the series may be surrendered for
      registration of transfer, Securities of the series may be surrendered for
      exchange or conversion and notices or demands to or upon the Company in
      respect of the Securities of the series and this Indenture may be
      served;
	 	
		(10)		whether the
      Securities of the series or any of them are to be redeemable at the option
      of the Company and, if so, the period or periods within which, the price
      or prices at which and the other terms and conditions upon which such
      Securities may be redeemed, in whole or in part, at the option of the
      Company;
	 	
		(11)		whether the Company
      is obligated to redeem, or purchase Securities of the series or any of
      them pursuant to any sinking fund or at the option of any Holder thereof
      and, if so, the period or periods within which, the price or prices at
      which and the other terms and conditions upon which such Securities shall
      be redeemed or purchased, in whole or in part, pursuant to such
      obligation, and any provisions for the remarketing of the Securities of
      the series so redeemed or purchased;
	 	
		(12)		the denominations in
      which Registered Securities of the series, if any, shall be issuable if
      other than denominations of $1,000 and any integral multiple thereof, and
      the denominations in which Bearer Securities of the series, if any, shall
      be issuable if other than the denomination of $5,000;
	 	
		(13)		if other than the
      principal amount thereof, the portion of the principal amount of the
      Securities of the series of any of them which shall be payable upon
      declaration of acceleration of the Maturity thereof pursuant to Section
      502 or the method by which such portion is to be determined;
	 	
		(14)		if other than such
      coin or currency of the United States of America as at the time of payment
      is legal tender for payment of public or private debts, the coin or
      currency, composite currencies or currency unit or units in which payment
      of the principal of (and premium, if any) or interest, if any, on or any
      Additional Amounts in respect of the Securities of the series or any of
      them shall be payable;
	 	
	 	(15)		if the principal of
      (and premium, if any) or interest, if any, on or any Additional Amounts in
      respect of the Securities of the series or any of them are to be payable,
      at the election of the Company or a Holder thereof, in a coin or currency,
      composite currencies or currency unit or units other than that in which
      the Securities of the series or any of them are stated to be payable, the
      period or periods within which, and the terms and conditions upon which,
      such election may be made;
	 	
	 	(16)		whether the amount of
      payments of principal of (and premium, if any) or interest (including
      Additional Amounts), if any, on the Securities of the series may be
      determined with reference to an index, formula or other method (which
      index, formula or method may be based, without limitation, on one or more
      currencies, currency units, composite currencies, commodities, equity
      indices or other indices), and, if so, the terms and conditions upon which
      and the manner in which such amounts shall be determined and paid or
      payable;

15

		(17)		whether the principal
      of (and premium, if any) or interest (including Additional Amounts), if
      any, on the Securities of the series are to be payable, at the election of
      the Company or any Holder thereof or otherwise, in a currency or
      currencies, currency unit or units or composite currency or currencies
      other than that in which such Securities or any of them are denominated or
      stated to be payable, the period or periods within which, and the other
      terms and conditions upon which, such election, if any, may be made, and
      the time and manner of determining the exchange rate between the currency
      or currencies, currency unit or units or composite currency or currencies
      in which such Securities or any of them are denominated or stated to be
      payable and the currency or currencies, currency unit or units or
      composite currency or currencies in which such Securities or any of them
      are to be so payable;
		 
	       	(18)	       	any deletions from,
      modifications of or additions to the Events of Default or covenants of the
      Company with respect to the Securities of the series or any of them,
      whether or not such Events of Default or covenants are consistent with the
      Events of Default or covenants set forth herein;
		 
		(19)		the applicability, if
      any, of Section 403 to the Securities of the series and any provisions in
      modification of, in addition to or in lieu of any of the provisions of
      Section 403;
		 
		(20)		if the Securities of
      the series or any of them are to be issued upon the exercise of warrants,
      the time, manner and place for such Securities to be authenticated and
      delivered;
		 
		(21)		if the Securities of
      the series are to be issuable in definitive form (whether upon original
      issue or upon exchange of a temporary Security of such series) only upon
      receipt of certain certificates or other documents or satisfaction of
      other conditions, then the form and terms of such certificates, documents
      or conditions;
		 
		(22)		if there is more than
      one Trustee, the identity of the Trustee and, if not the Trustee, the
      identity of each Security Registrar, Paying Agent and/or Authenticating
      Agent with respect to the Securities of the series;
		 
		(23)		whether any of the
      Securities of a series shall be issued as Original Issue Discount
      Securities; and
		 
		(24)		any other terms of
      the Securities of the series or any of them.

All Securities of any one
series and Coupons appertaining to Bearer Securities of such series, if any,
shall be substantially identical except as to denomination and the rate or rates
of interest, if any, and Stated Maturity, the date from which interest, if any,
shall accrue and except as may otherwise be provided by the Company in or
pursuant to one or more Board Resolutions and set forth in such Officers’
Certificate or in any indenture or indentures supplemental hereto pertaining to
such series of Securities. All Securities of any one series need not be issued
at the same time and, unless otherwise so provided by the Company, a series may
be reopened for issuances of additional Securities of such series. 

If any of the terms of the
Securities of any series were established by action taken by or pursuant to a
Board Resolution, the Board Resolution shall be delivered to the Trustee at or
prior to the delivery of the Officers’ Certificate setting forth the terms of
such series. 

16

Section 302. Denominations.

Unless otherwise established
with respect to any Securities pursuant to Section 301, the Registered
Securities of each series, if any, denominated in Dollars shall be issuable in
registered form without coupons in denominations of $1,000 and any integral
multiple thereof, and the Bearer Securities of each series, if any, denominated in Dollars shall be issuable in the
denomination of $1,000. Securities not denominated in Dollars shall be issuable
in such denominations as are established with respect to such Securities
pursuant to Section 301. 

Section 303. Securities in
Foreign Countries 

Whenever this Indenture
provides for (i) any action by, or the determination of any of the rights of,
Holders of Securities of any series in which not all of such Securities are
denominated in the same currency, or (ii) any distribution to Holders of
Securities, in the absence of any provision to the contrary in the form of
Security of any particular series, any amount in respect of any Security
denominated in a currency other than United States dollars shall be treated for
any such action or distribution as that amount of United States dollars that
could be obtained for such amount on such reasonable basis of exchange and as of
the record date with respect to Registered Securities of such series (if any)
for such action, determination of rights or distribution (or, if there shall be
no applicable record date, such other date reasonably proximate to the date of
such action, determination of rights or distribution) as the Company may specify
in a written notice to the Trustee or, in the absence of such written notice, as
the Trustee may determine. 

Section 304. Execution,
Authentication, Delivery and Dating. 

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

Securities and Coupons 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, together with any Coupons appertaining thereto,
executed by the Company, to the Trustee for authentication, and, provided that
the Board Resolution or Resolutions and Officers’ Certificate or supplemental
indenture or indentures with respect to such Securities referred to in Section
301 and a Company Order for the authentication and delivery of such Securities,
has been delivered to the Trustee, the Trustee in accordance with the Company
Order and subject to the provisions hereof of such Securities shall authenticate
and deliver such Securities. In authenticating such Securities, and accepting
the additional responsibilities under this Indenture in relation to such
Securities and any Coupons appertaining thereto, the Trustee shall be entitled
to receive, and (subject to Sections 315(a) through 315(b) of the Trust
Indenture Act) shall be fully protected in relying upon,

	      	(1)	      	an Opinion of Counsel
      stating, to the effect
		 
				(A)	      	that the form or forms and terms of such
      Securities and Coupons, if any, have been established in conformity with
      the provisions of this Indenture;
	              	 	 	 
				(B)		that all conditions precedent to the
      authentication and delivery of such Securities and Coupons, if any,
      appertaining thereto, have been complied with and that such Securities,
      and Coupons, when completed by appropriate insertion and executed and
      delivered by the Company to the Trustee for authentication pursuant to
      this Indenture, and 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 legally valid and binding
      obligations of the Company, enforceable against the Company in accordance
      with their terms, subject to bankruptcy, insolvency, reorganization,
      moratorium, fraudulent transfer or other similar laws affecting the
      enforcement of creditors’ rights generally, and subject to general
      principles of equity (regardless of whether enforcement is sought in a
      proceeding in equity or at law) and will entitle
the Holders thereof to
      the benefits of the Indenture; such Opinion of Counsel need express no
      opinion as to the availability of equitable remedies;

17

	              	(C)	       	that all laws and
      requirements in respect of the execution and delivery by the Company of
      such Securities and Coupons, if any, have been complied with;
  and
		 
		(D)		as to such other
      matters as the Trustee may reasonably request; and

(2) an Officers’ Certificate
stating that, to the best knowledge of the Persons executing such certificate,
no Event of Default with respect to any of the Securities shall have occurred
and be continuing. 

If all the Securities of any
series are not to be issued at one time, it shall not be necessary to deliver an
Opinion of Counsel and an Officers’ Certificate at the time of issuance of each
Security, but such opinion and certificate, with appropriate modifications to
cover future issuances, shall be delivered at or before the time of issuance of
the first Security of such series. 

The Trustee shall not be
required to authenticate or to cause an Authenticating Agent to authenticate any
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 or 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. 

Each Registered Security shall
be dated the date of its authentication. Each Bearer Security and any temporary
Bearer Security in global form shall be dated as of the date specified as
contemplated by Section 301. 

No Security or Coupon 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 in Section 202 or 611 executed by or on
behalf of the Trustee by the manual signature of one of its authorized officers,
and such certificate upon any Security shall be conclusive evidence, and the
only evidence, that such Security has been duly authenticated and delivered
hereunder. Except as permitted by Section 307 or 308, the Trustee shall not
authenticate and deliver any Bearer Security unless all appurtenant Coupons for
interest then matured have been detached and cancelled. 

Section 305. Temporary
Securities. 

Pending the preparation of
definitive Securities of any series, the Company may execute and deliver to the
Trustee and, upon Company Order the Trustee shall authenticate and deliver, in
the manner provided in Section 304, temporary Securities of such series 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, in registered form or, if
authorized, in bearer form with one or more Coupons or without Coupons and with
such appropriate insertions, omissions, substitutions and other variations as
the officers of the Company executing such Securities may determine, as
conclusively evidenced by their execution of such Securities. In the case of
Securities of any series, such temporary Securities may be in global form.

Except in the case of
temporary Securities in global form, which shall be exchanged in accordance with
the provisions thereof, if temporary Securities of any series are issued, the
Company shall cause definitive Securities of such series to be prepared without
unreasonable delay. After the preparation of definitive Securities of any
series, the temporary Securities of such series, if any, shall be exchangeable
upon request for definitive Securities of such series containing identical terms
and provisions upon surrender of the temporary Securities of such series at an
office or agency of the Company maintained for such purpose pursuant to Section
1002, without charge to any Holder. Upon surrender for cancellation of any one
or more temporary Securities of any series (accompanied by any unmatured Coupons
appertaining thereto), the Company shall execute and the Trustee shall
authenticate and deliver in exchange therefor a like principal amount of
definitive Securities of authorized denominations of the same series containing
identical terms and provisions; PROVIDED, HOWEVER, that no definitive Bearer
Security, except as provided pursuant to Section
301, shall be delivered in exchange for a temporary Registered Security; and
PROVIDED, FURTHER, that a definitive Bearer Security shall be delivered in
exchange for a temporary Bearer Security only in compliance with the conditions
set forth herein or therein. Unless otherwise specified as contemplated by
Section 301 with respect to a temporary global Security, 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. 

18

Section 306. Registration,
Transfer and Exchange. 

With
respect to the Registered Securities of each series, if any, the Company shall
cause to be kept, at an office or agency of the Company maintained pursuant to
Section 1002, a register (each such register being herein sometimes referred to
as the “Security Register”) in which, subject to such reasonable regulations as
it may prescribe, the Company shall provide for the registration of the
Registered Securities of each series and of transfers of the Registered
Securities of such series. In the event that the Trustee shall not be the
Security Registrar, it shall have the right to examine the Security Register at
all reasonable times. [Southern First Bancshares, Inc.] is hereby initially
appointed as Security Registrar for each series of Securities. In the event that
[Southern First Bancshares, Inc.] shall cease to be Security Registrar with
respect to a series of Securities, the Trustee shall have the right to examine
the Security Register for such series at all reasonable times. 

Upon
surrender for registration of transfer of any Registered Security of any series
at any office or agency of the Company maintained for such series pursuant to
Section 1002, the Company shall execute, and the Trustee shall authenticate and
deliver, in the name of the designated transferee or transferees, one or more
new Registered Securities of the same series of any authorized denominations, of
a like aggregate principal amount bearing a number not contemporaneously
outstanding and containing identical terms and provisions. 

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

If
specified as contemplated by Section 301 with respect to Securities of any
series, at the option of the Holder, Bearer Securities of such series may be
exchanged for Registered Securities of such series containing identical terms
and provisions, of any authorized denominations and aggregate principal amount,
upon surrender of the Bearer Securities to be exchanged at any such office or
agency for such series, with all unmatured Coupons and all matured Coupons in
default thereto appertaining. If the Holder of a Bearer Security is unable to
produce any such unmatured Coupon or Coupons or matured Coupon or Coupons in
default, such exchange may be effected if the Bearer Securities are accompanied
by payment in funds acceptable to the Company and the Trustee in an amount equal
to the face amount of such missing Coupon or Coupons, or the surrender of such
missing Coupon or Coupons may be waived by the Company and the Trustee if there
is furnished to them such Security or indemnity as they may require to save each
of them and any Paying Agent harmless. If thereafter the Holder of such Security
shall surrender to any Paying Agent any such missing Coupon in respect of which
such a payment shall have been made, such Holder shall be entitled to receive
the amount of such payment; PROVIDED, HOWEVER, that, except as otherwise
provided in Section 1002, interest represented by Coupons shall be payable only
upon presentation and surrender of those Coupons at an office or agency for such
series located outside the United States. Notwithstanding the foregoing, in case
a Bearer Security of any series is surrendered at any such office or agency in
exchange for a Registered Security of such series and like tenor after the close
of business at such office or agency on (i) any Regular Record Date and before
the opening of business at such office or agency on the relevant Interest
Payment Date, or (ii) any Special Record Date and before the opening of business
at such office or agency on the related date for payment of Defaulted Interest,
such Bearer Security shall be surrendered without the Coupon relating to such
Interest Payment Date or proposed date of payment, as the case may be (or, if
such Coupon is so surrendered with such Bearer Security, such Coupon shall be
returned to the person so surrendering the Bearer Security), and interest or
Defaulted Interest, as the case may be, will not be payable on such Interest
Payment Date or proposed date for payment, as the case may be, in respect of the
Registered Security issued in exchange for such Bearer Security, but will be
payable only to the Holder of such Coupon when due in accordance with the
provisions of this Indenture. 

19

If
specified as contemplated by Section 301 with respect to Securities of any
series, at the option of the Holder, Registered Securities of such series may be
exchanged for Bearer Securities upon such terms and conditions as may be
provided pursuant hereto with respect to such series. 

Whenever any Securities are so surrendered for exchange as contemplated
by the immediately preceding two paragraphs, the Company shall execute, and the
Trustee shall authenticate and deliver, the Securities which the Holder making
the exchange is entitled to receive. 

Notwithstanding the foregoing, except as otherwise specified as
contemplated by Section 301, any global Security of any series shall be
exchangeable for Securities of such series only if (i) the Securities Depository
is at any time unwilling or unable or ineligible to continue as Securities
Depository and a successor depository is not appointed by the Company within 90
days of the date the Company is so notified in writing, (ii) the Company
executes and delivers to the Trustee a Company Order to the effect that such
global Security shall be so exchangeable, or (iii) an Event of Default has
occurred and is continuing with respect to the Securities. If the beneficial
owners of interests in a global Security are entitled to exchange such interests
for Securities of such series and of like tenor and principal amount of any
authorized form and denomination, as specified as contemplated by Section 301,
then without unnecessary delay but in any event not later than the earliest date
on which such interests may be so exchanged, the Company shall deliver to the
Trustee definitive Securities of that series in aggregate principal amount equal
to the principal amount of such global Security, executed by the Company. On or
after the earliest date on which such interests may be so exchanged, such global
Security shall be surrendered from time to time by the U.S. Depository or such
other depository as shall be specified in the Company Order with respect
thereto, and in accordance with instructions given to the Trustee and the U.S.
Depository or such other depository, as the case may be (which instructions
shall be in writing but need not comply with Section 102 or be accompanied by an
Opinion of Counsel), as shall be specified in the Company Order with respect
thereto to the Trustee, as the Company’s agent for such purpose, to be
exchanged, in whole or in part, for definitive Securities of the same series
without charge. The Trustee shall authenticate and make available for delivery,
in exchange for each portion of such surrendered global Security, a like
aggregate principal amount of definitive Securities of the same series of
authorized denominations and of like tenor as the portion of such global
Security to be exchanged which (unless the Securities of such series are not
issuable both as Bearer Securities and as Registered Securities, in which case
the definitive Securities exchanged for the global Security shall be issuable
only in the form in which the Securities are issuable, as specified as
contemplated by Section 301) shall be in the form of Bearer Securities or
Registered Securities, or any combination thereof, as shall be specified by the
beneficial owner thereof; PROVIDED, HOWEVER, that no such exchanges may occur
during a period beginning at the opening of business 15 days before any
selection of Securities of such series to be redeemed and ending on the relevant
Redemption Date; and provided, further, that (unless otherwise specified as
contemplated by Section 301) no Bearer Security delivered in exchange for a
portion of a global Security shall be mailed or otherwise delivered to any
location in the United States. Promptly following any such exchange in part, such global Security shall
be returned by the Trustee to such Depository or the U.S. Depository, as the
case may be, or such other Depository or U.S. Depository referred to above in
accordance with the instructions of the Company referred to above. If a
Registered Security is issued in exchange for any portion of a global Security
after the close of business at the office or agency where such exchange occurs
on (i) any Regular Record Date and before the opening of business at such office
or agency on the relevant Interest Payment Date, or (ii) any Special Record Date
and before the opening of business at such office or agency on the related
proposed date for payment of interest or Defaulted Interest, as the case may be,
interest will not be payable on such Interest Payment Date or proposed date for
payment, as the case may be, in respect of such Registered Security, but will be
payable on such Interest Payment Date or proposed date for payment, as the case
may be, only to the Person to whom interest in respect of such portion of such
global Security is payable in accordance with the provisions of this Indenture.

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

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

20

No
service charge shall be made for any registration of transfer or exchange,
redemption or conversion of Securities, but the Company may require payment of a
sum sufficient to cover any tax or other governmental charge that may be imposed
in connection with any registration of transfer or exchange of Securities, other
than exchanges pursuant to Section 305, 906 or 1107 not involving any transfer.

Except as otherwise specified as contemplated by Section 301, the Company
shall not be required (i) to issue, register the transfer of or exchange any
Securities of any series during a period beginning at the opening of business 15
days before the day of the selection for redemption of Securities of such series
under Section 1103 and ending at the close of business on the day of such
selection, or (ii) to register the transfer of or exchange any Registered
Security so selected for redemption in whole or in part, except in the case of
any Security to be redeemed in part, the portion thereof not to be redeemed, or
(iii) to exchange any Bearer Security so selected for redemption except, to the
extent provided with respect to such Security, that such a Bearer Security may
be exchanged for a Registered Security of that series, provided that such
Registered Security shall be immediately surrendered for redemption with written
instruction for payment consistent with the provisions of this Indenture or (iv)
to issue, register the transfer of or exchange any Security which, in accordance
with its terms specified as contemplated by Section 301, has been surrendered
for repayment at the option of the Holder, except the portion, if any, of such
Security not to be repaid. 

Section 307. Mutilated, Destroyed, Lost and Stolen Securities.

If
any mutilated Security or a Security with a mutilated Coupon appertaining to it
is surrendered to the Trustee, subject to the provisions of this Section 307,
the Company shall execute and the Trustee shall authenticate and deliver in
exchange therefor a new Security of the same series containing identical terms
and of like principal amount and bearing a number not contemporaneously
outstanding, with Coupons corresponding to the Coupons, if any, appertaining to
the surrendered Security. 

If
there be delivered to the Company and to the Trustee (i) evidence to their
satisfaction of the destruction, loss or theft of any Security or Coupon, 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 or Coupon has been acquired by a bona
fide purchaser, the Company shall execute and upon its request the Trustee shall
authenticate and deliver, in exchange for or in lieu of any such mutilated,
destroyed, lost or stolen Security or in exchange for the Security to which a
destroyed, lost or stolen Coupon appertains with all appurtenant Coupons not
destroyed, lost or stolen, a new Security of the same series containing
identical terms and of like principal amount and bearing a number not
contemporaneously outstanding, with Coupons corresponding to the Coupons, if
any, appertaining to such destroyed, lost or stolen Security or to the Security
to which such destroyed, lost or stolen Coupon appertains. 

Notwithstanding the foregoing provisions of this Section 307, in case any
such mutilated, destroyed, lost or stolen Security or Coupon 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 or Coupon; PROVIDED, HOWEVER, that
payment of principal of (and premium, if any) and any interest on Bearer
Securities shall, except as otherwise provided in Section 1002, be payable only
at an office or agency located outside the United States and, unless otherwise
specified as contemplated by Section 301, any interest on Bearer Securities
shall be payable only upon presentation and surrender of the Coupons
appertaining thereto. 

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, with its Coupons, if any, issued
pursuant to this Section in lieu of any destroyed, lost or stolen Security and
its Coupons, if any, or the destroyed, lost or stolen Coupon shall constitute a
separate obligation of the Company, whether or not the destroyed, lost or stolen
Security and its Coupons, if any, or the destroyed, lost or stolen Coupon 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 and their Coupons, if any.  

21

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 or Coupons. 

Section 308. Payment of Interest; Interest Rights Preserved.

Unless otherwise specified as contemplated by Section 301, interest on
any Registered 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 as of
the close of business on the Regular Record Date for such interest. In case a
Bearer Security of any series is surrendered in exchange for a Registered
Security of such series after the close of business (at an office or agency in a
Place of Payment for such series) on any Regular Record Date and before the
opening of business (at such office or agency) on the next succeeding Interest
Payment Date, such Bearer Security shall be surrendered without the Coupon
relating to such Interest Payment Date and interest will not be payable on such
Interest Payment Date in respect of the Registered Security issued in exchange
of such Bearer Security, but will be payable only to the Holder of such Coupon
when due in accordance with the provisions of this Indenture. 

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

(1)
The Company may elect to make payment of any Defaulted Interest to the Persons
in whose names the Registered Securities affected (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 such Registered
Security 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 on or prior to the
date of the proposed payment. Money will 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 such Registered Securities 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 mailed as aforesaid,
such Defaulted Interest shall be paid to the Persons in whose names such
Registered Securities (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). In case a Bearer
Security of any series is surrendered at the office or agency in a Place of
Payment for such series in exchange for a Registered Security of such series
after the close of business at such office or agency on any Special Record Date
and before the opening of business at such office or agency on the related
proposed date for payment of Defaulted Interest, such Bearer Security shall be
surrendered without the Coupon relating to such proposed date of payment and
Defaulted Interest will not be payable on such proposed date of payment in
respect of the Registered Security issued in exchange for such Bearer Security,
but will be payable only to the Holder of such Coupon when due in accordance
with the provisions of this Indenture. 

(2)
The Company may make payment of any Defaulted Interest 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 payment shall be deemed
practicable by the Trustee. 

22

At
the option of the Company, interest on Registered Securities of any series that
bear interest may be paid by mailing a check to the address of the person
entitled thereto as such address shall appear in the Security Register.

Subject to the foregoing provisions of this Section and Section 306, each
Security delivered under this Indenture upon registration of transfer of or in
exchange for or in lieu of any other Security shall carry the rights to interest
accrued and unpaid, and to accrue, which were carried by such other Security.

Section 309. Persons Deemed
Owners. 

Prior to due presentment of a Registered 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 Registered Security is registered as the
owner of such Registered Security for the purpose of receiving payment of
principal of (and premium, if any), and (subject to Sections 306 and 308)
interest on or any Additional Amounts with respect to, such Registered Security
and for all other purposes whatsoever, whether or not any payment with respect
to such Registered 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. 

The
Company, the Trustee and any agent of the Company or the Trustee may treat the
bearer of any Bearer Security and the bearer of any Coupon as the absolute owner
of such Security or Coupon for the purpose of receiving payment thereof or on
account thereof and for all other purposes whatsoever, whether or not any
payment with respect to such Security or Coupon 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 310. Cancellation.

All
Securities and Coupons surrendered for payment, redemption, registration of
transfer or exchange or for credit against any sinking fund payment shall, if
surrendered to any Person other than the Trustee or the Security Registrar, be
delivered to the Trustee or the Security Registrar, and any such Securities and
Coupons and Securities and Coupons surrendered directly to the Trustee or the
Security Registrar for any such purpose shall be promptly cancelled by the
Trustee or the Security Registrar, as the case may be. The Company may at any
time deliver to the Trustee or the Security Registrar for cancellation any
Securities previously authenticated and delivered hereunder which the Company
may have acquired in any manner whatsoever, and all Securities so delivered
shall be promptly cancelled by the Trustee or the Security Registrar, as the
case may be. 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 or as otherwise specified as contemplated by Section
301. All cancelled Securities and Coupons held by the Trustee or the Security
Registrar shall be returned to the Company by the Trustee or the Security
Registrar, as the case may be, upon a Company Order. The Trustee shall promptly
notify the Company of all cancelled Securities. 

Section 311. Computation of
Interest. 

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

Section 312. 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
change in the “CUSIP” numbers. 

23

ARTICLE FOUR

SATISFACTION AND
DISCHARGE 

Section 401. Satisfaction and Discharge of Indenture. 

Upon
the direction of the Company by a Company Order, this Indenture shall cease to
be of further effect with respect to any series of Securities specified in such
Company Order (except as to any surviving rights of registration of transfer or
exchange of Securities of such series herein expressly provided for and any
right to receive Additional Amounts, as provided in Section 1004), and the
Trustee, on receipt of a Company Order, at the expense of the Company, shall
execute proper instruments acknowledging satisfaction and discharge of this
Indenture as to such series, when 

	       	(1)	either
		           
    	
			(A)	all Securities of
      such series theretofore authenticated and delivered and all Coupons
      appertaining thereto (other than (i) Coupons appertaining to Bearer
      Securities of such series surrendered for exchange for Registered
      Securities of such series and maturing after such exchange, whose
      surrender is not required or has been waived as provided in Section 306,
      (ii) Securities and Coupons of such series which have been destroyed, lost
      or stolen and which have been replaced or paid as provided in Section 307,
      (iii) Coupons appertaining to Securities of such series called for
      redemption and maturing after the relevant Redemption Date, whose
      surrender has been waived as provided in Section 1107, and (iv) Securities
      and Coupons of such series for whose payment money has theretofore been
      deposited in trust or segregated and held in trust by the Company and
      thereafter repaid to the Company or discharged from such trust, as
      provided in Section 1003) have been delivered to the Trustee for
      cancellation; or
			           
    	
			(B)	all Securities of
      such series and, in the case of (i) or (ii) below, any such Coupons
      appertaining thereto 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 and such Securities are
      not convertible into other Securities, or
					 
				(iii)	if redeemable at the
      option of the Company, such Securities are not convertible into other
      Securities and 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, lawful
      money of the United States Government Obligations which through the
      payment of interest and principal or other amounts in respect thereof in
      accordance with their terms will provide not later than the opening of
      business on the due dates of any payment of principal (and premium, if
      any) and interest, or any Additional Amounts with respect thereto, or a
      combination thereof, in an amount sufficient to pay and discharge the
      entire indebtedness on such Securities and Coupons not theretofore
      delivered to the Trustee for cancellation, for principal (and premium, if
      any) and interest, or any Additional Amounts with respect thereto, to the
      date of such deposit (in the case of Securities which have become due and
      payable) or to the Stated Maturity or Redemption Date, as the case may
      be;
			 
		(2)	the Company has paid
      or caused to be paid all other sums payable hereunder by the Company;
      and
			 
		(3)	the Company has
      delivered to the Trustee an Officers’ Certificate and an Opinion of
      Counsel, each stating that all conditions precedent herein provided for
      relating to the satisfaction and discharge of this Indenture as to such
      series have been complied with.

24

In
the event there are two or more Trustees hereunder, then the effectiveness of
any such instrument shall be conditioned upon receipt of such instruments from
all Trustees hereunder.

Notwithstanding the satisfaction and discharge of this Indenture, the
obligations of the Company to the Trustee under Section 606 and, if money shall
have been deposited with the Trustee pursuant to subclause (B) of Clause (1) of
this Section, the obligations of the Trustee under Section 402 and the last
paragraph of Section 1003 shall survive such satisfaction and
discharge.

Section 402. Application of
Trust Money.

Subject to the provisions of the last paragraph of Section 1003, all
money deposited with the Trustee pursuant to Section 401 or this section 402
shall be held in trust and applied by it, in accordance with the provisions of
the Securities, the Coupons 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 any interest or any Additional Amounts 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.

All
monies deposited with the Trustee pursuant to Section 401 (and held by it or any
Paying Agent) for the payment of Securities subsequently converted shall be
returned to the Company upon Company Request.

Section 403. Satisfaction,
Discharge and Defeasance of Securities of Any Series.

If
pursuant to Section 301 provision is made for defeasance of Securities of any
series pursuant to Section 403, the Company shall be deemed to have paid and
discharged the entire indebtedness on all the Outstanding Securities of such
series and the Trustee, at the expense of the Company, shall execute proper
instruments acknowledging satisfaction and discharge of such indebtedness,
when

	      	(1)	either
		           	           	
			(A)	with respect to all
      Outstanding Securities of such series and any Coupons appertaining
      thereto,
		           		           	
				(i)	the Company has deposited or caused to be
      deposited with the Trustee, as trust funds in trust for such purpose, an
      amount sufficient to pay and discharge the entire indebtedness on all
      Outstanding Securities of such series for principal (and premium, if any),
      any Additional Amounts, and interest to the Stated Maturity or any
      Redemption Date as contemplated by the penultimate paragraph of this
      Section 403, as the case may be; or
	 				
				(ii)	with respect to any Series of Securities
      which are denominated in United States dollars, the Company has deposited
      or caused to be deposited with the Trustee, as obligations in trust for
      such purpose, such amount of direct obligations of, or obligations the
      timely payment of the principal of and interest on which are fully
      guaranteed by, the United States of America and which are not callable at
      the option of the issuer thereof as will, together with the income to
      accrue thereon without consideration of any reinvestment thereof, be
      sufficient to pay and discharge the entire indebtedness on all Outstanding
      Securities of such series for principal (and premium, if any), any
      Additional Amounts, and interest to the stated Maturity or any Redemption
      Date as contemplated by the penultimate paragraph of this Section 403;
      or

25

	      		(B)	the Company has properly fulfilled such
      other means of satisfaction and discharge as is specified, as contemplated
      by Section 301, to be applicable to the Securities of such series;
      and
		           	           	
		(2)	the Company has paid or
      caused to be paid all other sums payable hereunder with respect to the
      Outstanding Securities of such series; and
			 
		(3)	the Company has
      delivered to the Trustee a certificate signed by a nationally recognized
      firm of Independent Public Accountants certifying as to the sufficiency of
      the amounts deposited pursuant to subsections (A) (i) or (ii) of this
      Section for payment of the principal (and premium, if any) and interest on
      the dates such payments are due, an Officers’ Certificate and an Opinion
      of Counsel, each such Certificate and opinion stating that no Event of
      Default or event which with notice or lapse of time or both would become
      an Event of Default with respect to such Securities shall have occurred
      and all conditions precedent herein provided for relating to the
      satisfaction and discharge of the entire indebtedness on all Outstanding
      Securities of any such series have been complied with; and
			 
		(4)	the Company has
      delivered to the Trustee
			 
			(A)	a ruling from the Internal Revenue Service
      or an opinion of independent counsel that the holders of the Securities of
      such series will not recognize income, gain or loss for Federal income tax
      purposes as a result of such deposit, defeasance and discharge and will be
      subject to Federal income tax on the same amount and in the same manner
      and at the same times, as would have been the case if such deposit,
      defeasance and discharge had not occurred; and
				 
			(B)	if the Securities of such series are then
      listed on the Nasdaq Global Market, an Opinion of Counsel that the
      Securities of such series will not be delisted as a result of the exercise
      of this option.

Any
deposits with the Trustee referred to in subsection (1) (A) of this Section
shall be irrevocable and shall be made under the terms of an escrow trust
agreement in form and substance satisfactory to the Trustee. If any Outstanding
Securities of such series are to be redeemed prior to their Stated Maturity,
whether pursuant to any optional redemption or repayment provisions or in
accordance with any mandatory sinking fund requirement, the Company shall make
such arrangements as are satisfactory to the Trustee for the giving of notice of
redemption by the Trustee in the name, and at the expense, of the Company.

Upon
the satisfaction of the conditions set forth in this Section 403 with respect to
all the Outstanding Securities of any series, the terms and conditions of such
series, including the terms and conditions with respect thereto set forth in
this Indenture, other than the provisions of Sections 306, 307, and 1002, other
than the right of Holders of Securities and any Coupons of such series to
receive, from the trust fund described in this Section, payment of the principal
(and premium, if any) of, the interest on or any Additional Amounts with respect
to such Securities and Coupons (if any) appertaining thereto when such payments
are due, other than any right of conversion of such Securities and the rights,
powers, duties and immunities of the Trustee hereunder, shall no longer be
binding upon, or applicable to, the Company except those responsibilities and
obligations which by the terms of the Indenture survive the termination of the
Indenture; PROVIDED that the Company shall not be discharged from any payment
obligations in respect of Securities of such series which are deemed not to be
Outstanding under clause (iii) of the definition thereof if such obligations
continue to be valid obligations of the Company under applicable law.

26

ARTICLE FIVE

REMEDIES 

Section 501. Events of Default. 

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

(1)
a court having jurisdiction in the premises shall enter a decree or order for
relief in respect of the Company or the Subsidiary Bank in an involuntary case
under any applicable bankruptcy, insolvency or other similar law now or
hereafter in effect, and adjudging it a bankrupt or insolvent or appointing a
receiver, liquidator, assignee, custodian, trustee, sequestrator (or similar
official) of the Company or the Subsidiary Bank or for any substantial part of
its property, or ordering the winding-up or liquidation of its affairs, and such
decree or order shall remain unstayed and in effect for a period of 60
consecutive days; or 

(2)
the Company or the Subsidiary Bank shall commence a voluntary case under any
applicable bankruptcy, insolvency or other similar law now or hereafter in
effect, or shall consent to the entry of an order for relief in any involuntary
case under any such law, or shall consent to the appointment of or taking
possession by a receiver, liquidator, assignee, trustee, custodian, sequestrator
(or similar official) of the Company or the Subsidiary Bank or for any
substantial part of its property, or shall make any general assignment for the
benefit of creditors, or shall fail generally to pay its debts as they become
due or shall take any corporate action in furtherance of any of the foregoing.

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 and any
related Coupons by such appropriate judicial proceedings as the Trustee shall
deem most effectual to protect and enforce any such rights, whether for the
specific enforcement of any covenant or agreement in this Indenture or in aid of
the exercise of any power granted herein, or to enforce any other proper remedy.

Section 502. Acceleration of Maturity; Rescission and Annulment.

If
an Event of Default with respect to Securities of any series at the time
outstanding occurs and is continuing, then the Trustee or the Holders of not
less than 25% in principal amount of the Outstanding Securities of that series
may declare the principal of all the Securities of that series, or such lesser
amount as may be provided for in 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 the Holders), and upon any such declaration such principal or such
lesser amount shall become immediately due and payable. 

At
any time after such a declaration of acceleration with respect to Securities of
any series has been made and before a judgment or decree for payment of the
money due has been obtained by the Trustee as hereinafter in this Article
provided, the Holders of not less than a majority in principal amount of the
Outstanding Securities of that series, by written notice to the Company and the
Trustee, may rescind and annul such declaration and its consequences if

	      	(1)	the Company has paid or
      deposited with the Trustee a sum sufficient to pay
		           	
			(A)	all overdue installments
      of interest on and any Additional Amounts payable in respect of all
      Securities of such series,
			           	
			(B)	the principal of (and
      premium, if any, on) any Securities of such series which have become due
      otherwise than by such declaration of acceleration and interest thereon at
      the rate or rates borne by or provided for in such
  Securities,

27

	      		(C)	to the extent that
      payment of such interest is lawful, interest upon overdue installments of
      interest or any Additional Amounts at the rate or rates borne by or
      provided for in such Securities, and
		           	           	
			(D)	all sums paid or
      advanced by the Trustee hereunder and the reasonable compensation,
      expenses, disbursements and advances of the Trustee, its agents and
      counsel as provided in Section 606 hereof; and
	 			
		(2)	all Events of Default
      with respect to Securities of such series, have been cured or waived as
      provided in Section 513.

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

Section 503. Collection of Indebtedness and Suits For Enforcement By
Trustee. 

The
Company covenants that if 

	      	(1)	default is
      made in the payment of any installment of interest on or any Additional
      Amounts payable in respect of any Security when such interest or
      Additional Amounts shall have become due and payable and such default
      continues for a period of 30 days, or
		           	
		(2)	default is
      made in the payment of the principal of (or premium, if any, on) any
      Security at its Maturity,

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

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

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

28

Section 504. Trustee May File Proofs of Claim. 

In
case of the pendency of any receivership, insolvency, liquidation, bankruptcy,
reorganization, arrangement, adjustment, composition or other judicial
proceeding relative to the Company or any other obligor upon the Securities or
the property of the Company or of such other obligor or their creditors, the
Trustee (irrespective of whether the principal of the Securities shall then be
due and payable as therein expressed or by declaration or otherwise and
irrespective of whether the Trustee shall have made any demand on the Company
for the payment of any overdue principal or interest) shall be entitled and
empowered, by intervention in such proceeding or otherwise, 

	      	(1)	to file
      and prove a claim for the whole amount or such lesser amount as may be
      provided for in the Securities of such series, of principal (and premium,
      if any) and interest and any Additional Amounts owing and unpaid in
      respect of the Securities and any Coupons appertaining thereto and to file
      such other papers or documents as may be necessary or advisable in order
      to have the claims of the Trustee (including any claim for the reasonable
      compensation, expenses, disbursements and advances of the Trustee, its
      agents or counsel) and of the Holders allowed in such judicial proceeding,
      and
		           	
		(2)	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 of Securities or Coupons 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 of Securities or Coupons, 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 606. 

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

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

All
rights of action and claims under this Indenture or any of the Securities or
coupons may be prosecuted and enforced by the Trustee without the possession of
any of the Securities or Coupons 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 or
judgment, after provision for the payment of the reasonable compensation,
expenses, disbursements and advances of the Trustee, its agents and counsel,
shall be for the ratable benefit of the Holders of the Security and Coupon in
respect of which such judgment has been recovered. 

Section 506. Application of
Money Collected. 

Any
money collected by the Trustee pursuant to this Article shall be applied in the
following order, at the date or dates fixed by the Trustee and, in case of the
distribution of such money on account of principal (and premium, if any),
interest or any Additional Amounts, upon presentation of the Securities or
Coupons, or both, as the case may be, 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 and any predecessor Trustee under Section 606;
      
 

		SECOND:       	
      To the payment of the
      amounts then due and unpaid upon the Securities and Coupons for principal
      (and premium, if any) and interest or any Additional Amounts payable 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 aggregate amounts due and payable on such Securities and Coupons
      for principal (and premium, if any), interest or any Additional Amounts,
      respectively; 
 

		THIRD:	
      The balance, if any, to
      the Company. 

29

Section 507. Limitation on
Suits. 

No Holder of any Security of
any series or any related Coupons 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 such
  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 indemnity reasonably satisfactory to the
      Trustee 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 such
  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 or any
Security to affect, disturb or prejudice the rights of any other such Holders or
Holders of Securities of any other series, or to obtain or to seek to obtain
priority or preference over any other Holders or to enforce any right under this
Indenture, except in the manner herein provided and for the equal and ratable
benefit of all such Holders. 

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

Notwithstanding any other
provision in this Indenture, the Holder of any Security or coupon shall have the
right, which is absolute and unconditional, to receive payment of the principal
of (and premium, if any) and (subject to Sections 306 and 308) interest on or
any Additional Amounts in respect of such Security or payment of such Coupon on
the respective Stated Maturity or Maturities specified in such Security or
Coupon (or, in the case of redemption, on the Redemption Date) and to institute
suit for the enforcement of any such payment, and such right shall not be
impaired without the consent of such Holder. 

Section 509. Restoration of
Rights and Remedies. 

If the Trustee or any Holder
of a Security or Coupon 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 the Company, the Trustee and each such
Holder shall, subject to any determination in such proceeding, be restored
severally and respectively to their former positions hereunder, and thereafter
all rights and remedies of the Trustee and each such Holder shall continue as
though no such proceeding had been instituted. 

Section 510. Rights and
Remedies Cumulative. 

Except as otherwise provided
with respect to the replacement or payment of mutilated, destroyed, lost or
stolen Securities or Coupons in the last paragraph of Section 307, no right or
remedy herein conferred upon or reserved to the Trustee or to the Holders of a
Security or Coupon is intended to be exclusive of any other right or remedy, and
every right and remedy, to the extent permitted by law, shall 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. 

30

Section 511. Delay or
Omission Not Waiver. 

No delay or omission of the
Trustee or of any Holder of any Security or coupon 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 of Securities or Coupons may be exercised from time to time, and as
often as may be deemed expedient, by the Trustee or by the Holders of Securities
or Coupons, as the case may be. 

Section 512. Control By
Holders. 

The Holders of a majority in
principal amount of the Outstanding Securities of any series shall have the
right to direct the time, method and place of conducting any proceeding for any
remedy available to the Trustee or exercising any trust or power conferred on
the Trustee with respect to the Securities of such series and any Coupons
appertaining thereto, 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)		such
      direction is not unduly prejudicial to the rights of other Holders of
      Securities of such series.

Section 513. Waiver of Past
Defaults. 

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

	     	(1)	     	in the
      payment of the principal of (and premium, if any) or interest on or
      Additional Amounts payable in respect of any Security of such series or
      any Coupons appertaining thereto, or
		 
		(2)		in respect
      of a covenant or provision hereof which under Article Nine cannot be
      modified or amended without the consent of the Holder of each Outstanding
      Security of such series affected.

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

Section 514. Waiver of Stay
or Extension Laws. 

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

31

ARTICLE SIX

THE TRUSTEE

Section 601. Notice of
Defaults. 

Within 90 days after the
occurrence of any default hereunder with respect to the Securities of any
series, the Trustee shall transmit to the Holders in the manner and to the
extent provided in Section 313(c) of the Trust Indenture Act, notice of such
default hereunder known to a Responsible Officer of the Trustee, unless such
default shall have been cured or waived; PROVIDED, HOWEVER, that, except in the
case of a default in the payment of the principal of (or premium, if any) or
interest on, or any Additional Amounts with respect to, any Security of such
series or in the payment of any sinking fund installment with respect to
Securities of such series, the Trustee shall be protected in withholding such
notice if and so long as the board of directors, the executive committee or a
trust committee of directors and/or Responsible Officers of the Trustee in good
faith determine that the withholding of such notice is in the interests of the
Holders of Securities and Coupons of such series. 

Section 602. Certain Rights
of Trustee. 

Subject to the provisions of
Sections 315(a) through 315(d) of the Trust Indenture Act: 

	     	(1)	     	the Trustee may
      conclusively rely and shall be protected in acting or refraining from
      acting upon any resolution, certificate, statement, instrument, opinion,
      report, notice, request, direction, consent, order, bond, debenture, note,
      or other paper or document reasonably believed by it to be genuine and to
      have been signed or presented by the proper party or parties;
		 
		(2)		any request or
      direction of the Company mentioned herein shall be sufficiently evidenced
      by a Company Request or a Company Order (other than delivery of any
      Security, together with any Coupons appertaining thereto to the Trustee
      for authentication and delivery pursuant to Section 304 which shall be
      sufficiently evidenced as provided therein) and any resolution of the
      Board of Directors may be sufficiently evidenced by a Board Resolution or
      Board Resolutions;
		 
		(3)		whenever in the
      administration of this Indenture the Trustee shall deem it desirable that
      a matter be proved or established prior to taking, suffering or omitting
      any action hereunder, the Trustee (unless other evidence be herein
      specifically prescribed) may, in the absence of bad faith on its part,
      conclusively rely upon an Officers’ Certificate;
		 
		(4)		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 in respect of any action taken, suffered or omitted by it
      hereunder in good faith and in reliance thereon;
		 
		(5)		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 of
      Securities of any series or any Coupons appertaining thereto pursuant to
      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 might be incurred by it in compliance with
      such request or direction;
		 
		(6)		the Trustee shall not
      be bound to make any investigation into the facts or matters stated in any
      resolution, certificate, statement, instrument, opinion, report, notice,
      request, direction, consent, order, bond, debenture 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 to the Company and shall incur no liability or additional liability
      of any kind by reason of such inquiry or investigation;
		 
		(7)		the Trustee may
      execute any of the trusts or powers hereunder or perform any duties
      hereunder either directly or by or through agents or attorneys and the
      Trustee shall not be responsible for any misconduct or negligence on the
      part of any agent or attorney appointed with due care by it
      hereunder;

32

	     	(8)	     	the
      Trustee shall not be liable for any action taken, suffered, omitted to be
      taken by it in good faith and reasonably believed by it to be authorized
      or within the discretion or rights or powers conferred upon it by this
      Indenture;
		 
		(9)		the
      Trustee shall not be deemed to have knowledge or notice of any default or
      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 or Event of Default is received by the Trustee at the
      Corporate Trust Office of the Trustee, and such notice references the
      Securities and this Indenture; and
		 
		(10)		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 agent, custodian and other Person
      employed to act hereunder.

Section 603. Not
Responsible For Recitals or Issuance of Securities. 

The recitals contained herein
and in the Securities, except the Trustee’s certificate of authentication, and
in any coupons shall be taken as the statements of the Company and neither the
Trustee nor any Authenticating Agent assumes responsibility for their
correctness. The Trustee makes no representations as to the validity or
sufficiency of this Indenture or of the Securities or Coupons, except that the
Trustee represents that it is duly authorized to execute and deliver this
Indenture, authenticate the Securities and perform its obligations hereunder and
that the statements made by it in a Statement of Eligibility and Qualification
on Form T-l supplied to the Company are true and accurate, subject to the
qualifications set forth therein. The Trustee or any Authenticating Agent shall
not be accountable for the use or application by the Company of Securities or
the proceeds thereof. 

Section 604. May Hold
Securities. 

The Trustee, any
Authenticating Agent, any Paying Agent, any Security Registrar or any other
Person that may be an agent of the Trustee or the Company, in its individual or
any other capacity, may become the owner or pledgee of Securities and Coupons
and, subject to Sections 310(b) and 311 of the Trust Indenture Act, may
otherwise deal with the Company with the same rights it would have if it were
not Trustee, Authenticating Agent, Paying Agent, Security Registrar or such
other Person. 

Section 605. Money Held In
Trust. 

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

Section 606. Compensation
and Reimbursement. 

The Company agrees 

	     	(1)	     	to pay to
      the Trustee from time to time such compensation for all services rendered
      by it hereunder as shall be mutually agreed upon by the Company and the
      Trustee in writing (which compensation shall not be limited by any
      provision of law in regard to the compensation of a trustee of an express
      trust);
		 
		(2)		except as
      otherwise expressly provided herein, to reimburse the Trustee upon its
      request for all reasonable expenses, disbursements and advances incurred
      or made by the Trustee in accordance with any provision of this Indenture
      (including the reasonable compensation and the reasonable expenses and
      disbursements of its agents and counsel), except any such expense,
      disbursement or advance as may be attributable to its negligence or bad
      faith; and

33

	     	(3)	     	to
      indemnify each of the Trustee and any predecessor Trustee and its agents
      for, and to hold them harmless against, any loss, liability, claim, damage
      or expense including taxes (other than taxes based upon, measured by or
      determined by the income of the Trustee) incurred without negligence or
      bad faith on their part, arising out of or in connection with the
      acceptance or administration of the trust or trusts hereunder, including
      the costs and expenses of defending themselves against any claim or
      liability in connection with the exercise or performance of any of their
      powers or duties hereunder.

As Security for the
performance of the obligations of the Company under this Section, the Trustee
shall have a lien prior to the Securities of any series upon all property and
funds held or collected by the Trustee as such, except funds held in trust for
the payment of principal of (or premium, if any) or interest on Securities. When
the Trustee incurs expenses or renders services after an Event of Default
occurs, the expenses and compensation for the services of the Trustee are
intended to constitute expenses of administration under any bankruptcy law or
any similar federal or state law for the relief of debtors. 

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

Section 607. Corporate
Trustee Required; Eligibility; Conflicting Interests. 

There shall at all times be a
Trustee hereunder that is a corporation permitted by Section 310(a) (1) and (5)
of the Trust Indenture Act to act as trustee under the Trust Indenture Act and
that has a combined capital and surplus (computed in accordance with Section
310(a) (2) of the Trust Indenture Act) of at least $50,000,000. If at any time
the Trustee shall cease to be eligible in accordance with the provisions of this
Section, it shall resign immediately in the manner and with the effect
hereinafter specified in this Article. If the Trustee has or shall acquire any
conflicting interest, as defined in Section 310(b) of the Trust Indenture Act,
with respect to the Securities of any series, the Trustee shall take such action
as is required pursuant to said Section 310(b). 

Section 608. Resignation
and Removal; Appointment of Successor. 

(a) No resignation or removal
of the Trustee and no appointment of a successor Trustee pursuant to this
Article shall become effective until the acceptance of appointment by the
successor Trustee pursuant to Section 609. 

(b) The Trustee may resign at
any time with respect to the Securities of one or more series by giving written
notice thereof to the Company. If the instrument of acceptance by a successor
Trustee required by Section 609 shall not have been delivered to the Trustee
within 30 days after the giving of such notice of resignation, the resigning
Trustee may petition, at the expense of the Company, any court of competent
jurisdiction for the appointment of a successor Trustee with respect to such
series. 

(c) The Trustee may be removed
at any time with respect to the Securities of any series by Act of the Holders
of a majority in principal amount of the Outstanding Securities of such series,
delivered to the Trustee and the Company. If an instrument of acceptance by a
successor Trustee shall not have been delivered to the Trustee within 30 days
after the giving of such notice of removal, the Trustee being removed may
petition, at the expense of the Company, any court of competent jurisdiction for
the appointment of a successor Trustee with respect to the Securities of such
series. 

(d) If at any time:

	          	(1)	     	the
      Trustee shall fail to comply with the obligations imposed upon it under
      Section 310(b) of the Trust Indenture Act after written request therefor
      by the Company or by any Holder of a Security who has been a bona fide
      Holder of a Security for at least six months, or

34

	          	(2)	     	the
      Trustee shall cease to be eligible under Section 607 and shall fail to
      resign after written request therefor by the Company or by any such Holder
      of a Security, or
		 
		(3)		the
      Trustee shall become incapable of acting or shall be adjudged a bankrupt
      or insolvent or a receiver of the Trustee or of its property shall be
      appointed or any public officer shall take charge or control of the
      Trustee or of its property or affairs for the purpose of rehabilitation,
      conservation or liquidation,

then, in any such case, (a)
the Company, by or pursuant to Board Resolution, may remove the Trustee with
respect to all Securities, or (b) subject to Section 315(c) of the Trust
Indenture Act any Holder of a Security who has been a bona fide Holder of a
Security of any series for at least six months may, on behalf of himself and all
others similarly situated, petition any court of competent jurisdiction for the
removal of the Trustee with respect to all Securities of such series and the
appointment of a successor Trustee or Trustees. 

(e) If the Trustee shall
resign, be removed or become incapable of acting, or if a vacancy shall occur in
the office of Trustee for any cause, with respect to the Securities of one or
more series, the Company, by or pursuant to Board Resolutions, shall promptly
appoint a successor Trustee or Trustees with respect to the Securities of that
or those series (it being understood that any such successor Trustee may be
appointed with respect to the Securities of one or more or all of such series
and that at any time there shall be only one Trustee with respect to the
Securities of any particular series) and shall comply with the applicable
requirements of Section 609. If, within one year after such resignation, removal
or incapability, or the occurrence of such vacancy, a successor Trustee with
respect to the Securities of any series shall be appointed by Act of the Holders
of a majority in principal amount of the Outstanding Securities of such series
delivered to the Company and the retiring Trustee, the successor Trustee so
appointed shall, forthwith upon its acceptance of such appointment in accordance
with the applicable requirements of Section 609, become the successor Trustee
with respect to the Securities of such series and to that extent supersede the
successor Trustee appointed by the Company. If no successor Trustee with respect
to the Securities of any series shall have been so appointed by the Company or
the Holders of Securities and accepted appointment in the manner required by
Section 609, any Holder of a Security who has been a bona fide Holder of a
Security of such series for at least six months may, on behalf of himself and
all others similarly situated, petition any court of competent jurisdiction for
the appointment of a successor Trustee with respect to the Securities of such
series. 

(f) The Company shall give
notice of each resignation and each removal of the Trustee with respect to the
Securities of any series and each appointment of a successor Trustee with
respect to the Securities of any series by mailing written notice of such event
by first-class mail, postage prepaid, to the Holders of Registered Securities,
if any, of such series as their names and addresses appear in the Security
Register and, if Securities of such series are issued as Bearer Securities, by
publishing notice of such event once in an Authorized Newspaper in each Place of
Payment located outside the United States. Each notice shall include the name of
the successor Trustee with respect to the Securities of such series and the
address of its Corporate Trust Office. 

Section 609. Acceptance of
Appointment By Successor. 

(a) In case of the appointment
hereunder of a successor Trustee with respect to all Securities, every such
successor Trustee so appointed shall execute, acknowledge and deliver to the
Company and the retiring Trustee an instrument accepting such appointment, and
thereupon the resignation or removal of the retiring Trustee shall become
effective and such successor Trustee, without any further act, deed or
conveyance, shall become vested with all the rights, powers, trusts and duties
of the retiring Trustee; but, on the request of the Company and/or the successor
Trustee, such retiring Trustee shall, upon payment of its charges, execute and
deliver an instrument transferring to such successor Trustee all the rights,
powers and trusts of the retiring Trustee and shall duly assign, transfer and
deliver to such successor Trustee all property and money held by such retiring
Trustee hereunder, subject nevertheless to its claim, if any, provided for in
Section 606. 

35

(b) In case of the appointment
hereunder of a successor Trustee with respect to the Securities of one or more
(but not all) series, the Company, the retiring Trustee and each successor
Trustee with respect to the Securities of one or more series shall execute and
deliver an indenture supplemental hereto wherein each successor Trustee shall
accept such appointment and which (1) shall contain such provisions as shall be
necessary or desirable to transfer and confirm to, and to vest in, each
successor Trustee all the rights, powers, trusts and duties of the retiring
Trustee with respect to the Securities of that or those series to which the
appointment of such successor Trustee relates, (2) if the retiring Trustee is
not retiring with respect to all Securities, shall contain such provisions as
shall be deemed necessary or desirable to confirm that all the rights, powers,
trusts and duties of the retiring Trustee with respect to the Securities of that
or those series as to which the retiring Trustee is not retiring shall continue
to be vested in the retiring Trustee, and (3) shall add to or change any of the
provisions of this Indenture as shall be necessary to provide for or facilitate
the administration of the trusts hereunder by more than one Trustee, it being
understood that nothing herein or in such supplemental indenture shall
constitute such Trustees co-trustees of the same trust, that each such Trustee
shall be trustee of a trust or trusts hereunder separate and apart from any
trust or trusts hereunder administered by any other such Trustee and that no
Trustee shall be responsible for any notice given to, or received by, or any act
or failure to act on the part of any other Trustee hereunder, and upon the
execution and delivery of such supplemental indenture the resignation or removal
of the retiring Trustee shall become effective to the extent provided therein,
such retiring Trustee shall with respect to the Securities of that or those
series to which the appointment of such successor Trustee relates have no
further responsibility for the exercise of rights and powers or for the
performance of the duties and obligations vested in the Trustee under this
Indenture other than as hereinafter expressly set forth, and each such successor
Trustee without any further act, deed or conveyance, shall become vested with
all the rights, powers, trusts and duties of the retiring Trustee with respect
to the Securities of that or those series to which the appointment of such
successor Trustee relates; but, on request of the Company or any successor
Trustee, such retiring Trustee shall duly assign, transfer and deliver to such
successor Trustee, to the extent contemplated by such supplemental indenture,
the property and money held by such retiring Trustee hereunder with respect to
the Securities of that or those series to which the appointment of such
successor Trustee relates. 

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

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

Section 610. Merger,
Conversion, Consolidation or Succession to Business. 

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

Section 611. Appointment of
Authenticating Agent. 

The Trustee may appoint an
Authenticating Agent or Authenticating Agents, which may be an Affiliate of the
Company, with respect to one or more series of Securities which shall be
authorized to act on behalf of the Trustee to authenticate Securities of that or
those series issued upon original issue or exchange, registration of transfer or
partial redemption thereof or pursuant to Section 307, and Securities so
authenticated shall be entitled to the benefits of this Indenture and shall be
valid and obligatory for all purposes as if authenticated by the Trustee
hereunder. Wherever reference is made in this Indenture to the authentication
and delivery of Securities by the Trustee or the Trustee’s certificate of
authentication, such reference shall be deemed to include authentication and
delivery on behalf of the Trustee by an Authenticating Agent and a certificate
of authentication executed on behalf of the Trustee by an Authenticating
Agent. 

36

Each Authenticating Agent
shall be acceptable to the Company and, except as specified as contemplated by
Section 301, shall at all times be a corporation that would be permitted by
Section 310(a) (1) and (5) of the Trust Indenture Act to be able to act as a
trustee under an indenture qualified under the Trust Indenture Act, is
authorized under applicable law and by its charter to act as such and that has a
combined capital and surplus (computed in accordance with Section 310(a) (2) of
the Trust Indenture Act) of not less that $50,000,000. If at any time an
Authenticating Agent shall cease to be eligible in accordance with the
provisions of this Section, such Authenticating Agent shall resign immediately
in the manner and with the effect specified in this Section. If the
Authenticating Agent has or shall acquire any conflicting interest, as defined
in Section 310(b) of the Trust Indenture Act, with respect to the Securities of
any series, the Authenticating Agent shall take action as is required pursuant
to said Section 310 (b). 

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

An Authenticating Agent may
resign at any time by giving written notice thereof to the Trustee and the
Company. The Trustee may at any time terminate the agency of an Authenticating
Agent by giving written notice thereof to such Authenticating Agent and the
Company. Upon receiving such a notice of resignation or upon such a termination,
or in case at any time such Authenticating Agent shall cease to be eligible in
accordance with the provisions of this Section, the Trustee may appoint a
successor Authenticating Agent which shall be acceptable to the Company and
shall (i) mail written notice of such appointment by first-class mail, postage
prepaid, to all Holders of Registered Securities, if any, of the series with
respect to which such Authenticating Agent will serve, as their names and
addresses appear in the Security Register, and (ii) if Securities of the series
are issued as Bearer Securities, publish notice of such appointment at least
once in an Authorized Newspaper in the place where such successor Authenticating
Agent has its principal office if such office is located outside the United
States. Any successor Authenticating Agent upon acceptance of its appointment
hereunder shall become vested with all the rights, powers and duties of its
predecessor hereunder, with like effect as if originally named as an
Authenticating Agent. No successor Authenticating Agent shall be appointed
unless eligible under the provisions of this Section. 

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

The provisions of Sections
309, 603 and 604 shall be applicable to each Authenticating Agent. 

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

This certificate represents
Securities of the series designated herein referred to in the within-mentioned
Indenture. 

	Dated:
      [                              
      ],	
	not
      in its individual capacity but solely as Trustee	
	 	
	 	
	By:	 	 
		          As
      Authenticating Agent	
		 	
	By:		
		          Authorized
      Signatory	

37

If all of the Securities of
any series may not be originally issued at one time, and if the Trustee does not
have an office capable of authenticating Securities upon original issuance
located in a Place of Payment where the Company wishes to have Securities of
such series authenticated upon original issuance, the Trustee, if so requested
in writing (which writing need not comply with Section 102) by the Company,
shall appoint in accordance with this Section an Authenticating Agent having an
office in a Place of Payment designated by the Company with respect to such
series of Securities. 

ARTICLE SEVEN

HOLDERS’ LISTS AND
REPORTS BY TRUSTEE AND COMPANY

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

In accordance with Section
312(a) of the Trust Indenture Act, the Company will furnish or cause to be
furnished to the Trustee 

	     	(1)	     	semi-annually, not
      later than 15 days after the Regular Record Date for interest for each
      series of Securities, a list, in such form as the Trustee may reasonably
      require, of the names and addresses of the Holders of Registered
      Securities of such series as of such Regular Record Date, or if there is
      no Regular Record Date for interest for such series of Securities,
      semi-annually, upon such dates as are set forth in the Board Resolution or
      indenture supplemental hereto authorizing such series, and
		 
		(2)		at such other times
      as the Trustee may request in writing, within 30 days after the receipt by
      the Company of any such request, a list of similar form and content as of
      a date not more than 15 days prior to the time such list is
      furnished,

provided,
however, that so long as the
Trustee is the Security Registrar no such list shall be required to be
furnished. 

Section 702. Preservation
of Information; Communications to Holders. 

(a) The Trustee shall comply
with the obligations imposed upon it pursuant to Section 312 of the Trust
Indenture Act. 

(b) Every Holder of Securities
or Coupons, by receiving and holding the same, agrees with the Company and the Trustee that
neither the Company nor the Trustee nor any Paying Agent nor any Security
Registrar shall be held accountable by reason of the disclosure of any such
information as to the names and addresses of the Holders of Securities in
accordance with Section 312 of the Trust Indenture Act, regardless of the source
from which such information was derived, and that the Trustee shall not be held
accountable by reason of mailing any material pursuant to a request made under
Section 312(b) of the Trust Indenture Act. 

Section 703. Reports By
Trustee. 

(a) Within 60 days after May
15 of each year commencing with the year following the first issuance of
Securities pursuant to Section 301, if required by Section 313(a) of the Trust
Indenture Act, the Trustee shall transmit pursuant to Section 313(c) of the
Trust Indenture Act a brief report dated as of such May 15 with respect to any
of the events specified in said Section 313(a) which may have occurred since the
later of the immediately preceding May 15 and the date of this Indenture.

38

(b) The Trustee shall transmit
the reports required by Section 313(a) of the Trust Indenture Act at the times
specified therein. 

(c) Reports pursuant to this
Section shall be transmitted in the manner and to the Persons required by
Sections 313(c) and (d) of the Trust Indenture Act. 

Section 704. Reports By
Company. 

The Company, pursuant to
Section 314(a) of the Trust Indenture Act, shall: 

	     	(1)	     	file with
      the Trustee, within 15 days after the Company actually files the same with
      the Commission, copies of the annual reports and of the information,
      documents and other reports (or copies of such portions of any of the
      foregoing as the Commission may from time to time by rules and regulations
      prescribe) which the Company may be required to file with the Commission
      pursuant to Section 13 or Section 15(d) of the Securities Exchange Act of
      1934; or, if the Company is not required to file information, documents or
      reports pursuant to either of said Sections, then it shall file with the
      Trustee and the Commission, in accordance with rules and regulations
      prescribed from time to time by the Commission, such of the supplementary
      and periodic information, documents and reports which may be required
      pursuant to Section 13 of the Securities Exchange Act of 1934 in respect
      of a Security listed and registered on a national Securities exchange as
      may be prescribed from time to time in such rules and
    regulations;
		 
		(2)		file with
      the Trustee and the Commission, in accordance with rules and regulations
      prescribed from time to time by the Commission, such additional
      information, documents and reports with respect to compliance by the
      Company with respect to compliance by such obligor with the conditions and
      covenants of this Indenture as may be required from time to time by such
      rules and regulations; and
		 
		(3)		transmit
      within 30 days after the actual filing thereof with the Trustee, in the
      manner and to the extent provided in Section 313(c) of the Trust Indenture
      Act, such summaries of any information, documents and reports required to
      be filed by the Company pursuant to paragraphs (1) and (2) of this Section
      as may be required by rules and regulations prescribed from time to time
      by the Commission; and
		 
		(4)		transmit
      within 90 days of December 31 of each year to the Trustee, a brief
      certificate from the principal executive officer, principal financial
      officer or principal accounting officer of the Company as to his or her
      knowledge of such obligor’s compliance with all conditions and covenants
      under the Indenture as determined without regard to any period of grace or
      requirement of notice provided under the
Indenture.

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 or other 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). 

ARTICLE EIGHT

CONSOLIDATION, MERGER AND
SALES 

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

Nothing contained in this
Indenture or in any of the Securities shall prevent any consolidation or merger
of the Company with or into any other Person or Persons (whether or not
affiliated with the Company), or successive consolidations or mergers in which
the Company or its successor or successors shall be a party or parties, or shall
prevent any conveyance, transfer or lease of the property of the Company as an
entirety or substantially as an entirety, to any other Person (whether or not
affiliated with the Company); PROVIDED, HOWEVER, that:  

39

	     	(1)	     	in case
      the Company shall consolidate with or merge into another Person or convey,
      transfer or lease its properties and assets substantially as an entirety
      to any Person, the entity formed by such consolidation or into which the
      Company is merged or the Person which acquires by conveyance or transfer,
      or which leases, the properties and assets of the Company substantially as
      an entirety shall be a corporation organized and existing under the laws
      of the United States of America, any State thereof or the District of
      Columbia and shall expressly assume, by an indenture (or indentures, if at
      such time there is more than one Trustee) supplemental hereto, executed
      and delivered by the successor Person to the Trustee, in form satisfactory
      to the Trustee, the due and punctual payment of the principal of (and
      premium, if any) and interest on or any Additional Amounts in respect of
      all the Securities and the performance of every other covenant of this
      Indenture on the part of the Company to be performed or
  observed;
		 
		(2)		immediately after giving effect to such transaction and treating
      any indebtedness which becomes an obligation of the Company or a
      Subsidiary as a result of such transaction as having been incurred by the
      Company or such Subsidiary at the time of such transaction, no Event of
      Default, and no event which, after notice or lapse of time or both, would
      become an Event of Default, shall have happened and be continuing;
      and
		 
		(3)		each of
      the Company and the successor Person has delivered to the Trustee an
      Officers’ Certificate and an Opinion of Counsel, each stating that such
      consolidation, merger, conveyance, transfer or lease and such supplemental
      indenture comply with this Article and that all conditions precedent
      herein provided for relating to such transaction have been complied
      with.

Section 802. Successor
Corporation Substituted For Company. 

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

ARTICLE NINE

SUPPLEMENTAL INDENTURES

Section 901. Supplemental
Indentures Without Consent of Holders. 

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

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

40

	      	(3)	      	to add to or change any of the provisions of
      this Indenture to provide that Bearer Securities may be registrable as to
      principal, to change or eliminate any restrictions on the payment of
      principal (or premium, if any) on Registered Securities or of principal
      (or premium, if any) or any interest on Bearer Securities, to permit
      Registered Securities to be exchanged for Bearer Securities or to permit
      or facilitate the issuance of Securities in uncertified form, PROVIDED any
      such action shall not adversely affect the interests of the Holders of
      Securities of any series or any Coupons appertaining thereto in any
      material respect;
		 
		(4)		to establish the form or terms of Securities
      of any series and any Coupons appertaining thereto as permitted by
      Sections 201 and 301;
		 
		(5)		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 609(b);
		 
		(6)		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 which shall
      not be inconsistent with the provisions of this Indenture and which shall
      not adversely affect the interest of the Holders of Securities of any
      series or any related coupons in any material respect;
		 
		(7)		to add to, delete from or revise the
      conditions, limitations and restrictions on the authorized amount, terms
      or purposes of issue, authentication and delivery of Securities, as herein
      set forth;
		 
		(8)		to add any additional Events of
      Default;
		 
		(9)		to modify, eliminate or add to the
      provisions of this Indenture to such extent as shall be necessary to
      conform the obligations of the Company and the Trustee under this
      Indenture to the obligations imposed on such Persons hereunder pursuant to
      the Trust Indenture Act or under any similar federal statute hereafter
      enacted and rules or regulations of the Commission
thereunder;
		 
		(10)		to make provisions with respect to the
      conversion rights of Holders of Convertible Securities pursuant to the
      requirements of Section 1606; or
		 
		(11)		to add to, change or eliminate any of the
      provisions of this Indenture in respect to one or more series of
      Securities; provided, however, that any such addition, change or
      elimination (i) shall neither (A) apply to any Security of any series
      issued prior to the execution of such supplemental indenture and entitled
      to the benefit of such provision nor (B) modify the rights of the Holder
      of any such pre-existing series of any Security with respect to the
      application of such provision to such pre-existing series of a Security or
      (ii) shall become effective only when there is no such pre-existing
      series of a Security outstanding.

Section 902. 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 Holders delivered to the Company and
the Trustee, the Company, when authorized by Board Resolutions, 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, shall 

41

		(1)		change the Stated
      Maturity of the principal of, or any installment of interest on, any
      Security, or reduce the principal amount thereof or the rate of interest
      thereon or any Additional Amounts payable in respect thereof, or any
      premium payable upon the redemption thereof, or change the obligation of
      the Company to pay Additional Amounts pursuant to Section 1004 (except as
      contemplated by Section 801(1) and permitted by Section 901(1)), or reduce
      the amount of the principal of an Original Issue Discount Security that
      would be due and payable upon a declaration of acceleration of the
      Maturity thereof pursuant to Section 502, or change the Place of Payment,
      coin or currency in which any Security or any premium or the interest
      thereon is payable, or impair the right to institute suit for the
      enforcement of any such payment on or after the Stated Maturity thereof
      (or, in the case of redemption, on or after the Redemption Date),
    or
		 
	      	(2)	      	reduce the percentage
      in principal amount of the Outstanding Securities of any series, the
      consent of whose Holders is required for any such supplemental indenture,
      or the consent of whose Holders is required for any waiver (of compliance
      with certain provisions of this Indenture or certain defaults hereunder
      and their consequences) provided for in this Indenture, or reduce the
      requirements of Section 1404 for quorum or voting, or
		 
		(3)		modify any of the
      provisions of this section, or Sections 512, 513 or Section 1011, 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.

The Company may, but shall not
be obligated to, fix a record date for the purposes of determining the Persons
entitled to consent to any indenture supplemental hereto. If a record date is
fixed, the Holders on such record date, or their duly designated proxies, and
only such Persons, shall be entitled to consent to such supplemental indenture,
whether or not such Holders remain Holders after such record date; PROVIDED,
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. 

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

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

Section 903. Execution of
Supplemental Indentures. 

As a condition to executing,
or accepting the additional trusts created by, any supplemental indenture
permitted by this Article or the modifications thereby of the trust created by
this Indenture, the Trustee shall be provided with, and (subject to Section 315
of the Trust Indenture Act) 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 and that it complies with the terms of
this Indenture. The Trustee may, but shall not be obligated to, enter into any
such supplemental indenture which affects the Trustee’s own rights, duties or
immunities under this Indenture or otherwise. 

Section 904. Effect of
Supplemental Indentures. 

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

42

Section 905. Conformity
With Trust Indenture Act. 

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

Section 906. Reference in
Securities to Supplemental Indentures. 

Securities 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. 

Section 907. Subordination
Unimpaired. 

No supplemental indenture
entered into under this Article Nine shall modify, directly or indirectly, the
provisions of Article Fifteen or the definition of Senior Indebtedness in
Section 101 in any manner that might alter or impair the subordination of the
Securities with respect to Senior Indebtedness then outstanding, unless each
holder of such Senior Indebtedness has consented thereto in writing. 

ARTICLE TEN

COVENANTS 

Section 1001. Payment of
Principal, Premium, If Any, and Interest. 

The Company covenants and
agrees for the benefit of the Holders of each series of Securities that it will
duly and punctually pay the principal of (and premium, if any), interest on or
any Additional Amounts payable in respect of the Securities of that series in
accordance with the terms of such series of Securities, any Coupons appertaining
thereto and this Indenture. Any interest due on and any Additional Amounts
payable in respect of Bearer Securities on or before Maturity, other than
Additional Amounts, if any, payable as provided in Section 1004 in respect of
principal of (or premium, if any, on) such a Security, shall be payable only
upon presentation and surrender of the several coupons for such interest
installments as are evidenced thereby as they severally mature. 

Section 1002. Maintenance
of Office or Agency. 

The Company will maintain in  each Place of
Payment for any series of Securities an office or agency where  Securities of such series (but not Bearer Securities, except
as otherwise  provided below, unless such Place of Payment is located outside the United  States) may be presented or
surrendered for payment, where Securities of that  series may be surrendered for registration of transfer or exchange and
where  notices and demands to or upon the Company in respect of the Securities of that  series and this Indenture may be
served. If Securities of a series are issuable  as Bearer Securities, the Company shall maintain, subject to any laws or
regulations applicable thereto, an office or agency in a Place of Payment for  such series which is located outside the
United States where Securities of such  series and the related Coupons may be presented and surrendered for payment
(including payment of any Additional Amounts payable on Securities of such  series pursuant to Section 1004)
          ; PROVIDED, HOWEVER, that if the Securities of  such series are
listed on The Stock Exchange of the United Kingdom and the  Republic of Ireland or the Luxembourg Stock Exchange or any other
stock exchange  located outside the United States and such stock exchange shall so require, the  Company will maintain a
Paying Agent in London, Luxembourg or any other required  city located outside the United States, as the case may be, so long
as the  Securities of such series are listed on such exchange. The Company will give  prompt written notice to the Trustee of
the location, and any change in the  location, of such office or agency. If at any time the Company shall fail to  maintain
any such required office or agency or shall fail to furnish the Trustee  with the address thereof, such presentations,
surrenders, notices and demands  may be made or served at the Corporate Trust Office of the Trustee, except that  Bearer
Securities of that series and the related Coupons may be presented and  surrendered for payment (including payment of any
Additional Amounts payable on  Bearer Securities of that series pursuant to Section 1004) at the place  specified for the
purpose pursuant to Section 301, and the Company hereby  appoints the Trustee as its agent to receive all such presentations,
surrenders,  notices and demands.

43

Except as otherwise specified
as contemplated by Section 301, no payment of principal, premium or interest on
Bearer Securities shall be made at any office or agency of the Company in the
United States or by check mailed to any address in the United States or by
transfer to an account maintained with a bank located in the United States;
PROVIDED, HOWEVER, payment of principal of and any premium and interest in U.S.
dollars (including Additional Amounts payable in respect thereof) on any Bearer
Security may be made at the Corporate Trust Office or any office or agency
designated by the Company if (but only if) payment of the full amount of such
principal, premium, interest or Additional Amounts at all offices outside the
United States maintained for the purpose by the Company in accordance with this
Indenture is illegal or effectively precluded by exchange controls or other
similar restrictions. 

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 their
obligation to maintain an office or agency in each Place of Payment for
Securities of any series for such purposes. The Company will give prompt written
notice to the Trustee of any such designation or rescission and of any change in
the location of any such other office or agency. Unless otherwise specified as
contemplated by Section 301, the Company hereby designates as the Place of
Payment for each series the Corporate Trust Office of the Trustee. Pursuant to
Section 301(9) of this Indenture, the Company may subsequently appoint a place
or places where such Securities may be payable. 

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

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

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

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

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

44

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 terms 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. 

Except as otherwise provided
hereby or pursuant hereto, any money deposited with the Trustee or any Paying
Agent, or then held by the Company, in trust for the payment of the principal of
(and premium, if any) or interest and Additional Amounts on any Security of any
series 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
Company Request, or (if then held by the Company) shall be discharged from such
trust; and the Holder of such Security or any Coupon appertaining thereto shall
thereafter, as an unsecured general creditor, look only to the Company for
payment thereof, and all liability of the Trustee or such Paying Agent with
respect to such trust money, and all liability of the Company as trustee
thereof, shall thereupon cease; PROVIDED, HOWEVER, that the Trustee or such
Paying Agent, before being required to make any such repayment, may at the
expense of the Company cause to be published once, in an Authorized Newspaper in
each Place of Payment for such series or to be mailed to Holders of Registered
Securities for such series, or both, 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 or mailing nor shall it be later than two
years after such principal (and premium, if any) or interest has become due and
payable, any unclaimed balance of such money then remaining will be repaid to
the Company. 

Section 1004. Additional
Amounts. 

If any Securities of a series
provide for the payment of Additional Amounts, the Company agrees to pay to the
Holder of any such Security of any such series or any Coupon appertaining
thereto Additional Amounts as provided therein. Whenever in this Indenture there
is mentioned, in any context, the payment of the principal of (or premium, if
any) or interest on, or in respect of, any Security of any series or any related
Coupon or the net proceeds received on the sale or exchange of any Security of
any series, such mention shall be deemed to include mention of the payment of
Additional Amounts provided by the terms of such series established hereby or
pursuant hereto to the extent that, in such context, Additional Amounts are,
were or would be payable in respect thereof pursuant to such terms and express
mention of the payment of Additional Amounts (if applicable) in any provisions
hereof shall not be construed as excluding Additional Amounts in those
provisions hereof where such express mention is not made. 

Except as otherwise provided
herein or pursuant hereto, if the Securities of a series provide for the Payment
of Additional Amounts, at least 10 days prior to the first Interest Payment Date
with respect to such series of Securities (or if the Securities of that series
shall not bear interest prior to Maturity, the first day on which a payment of
principal (and premium, if any, is made), and at least 10 days prior to each
date of payment of principal (and premium, if any) or interest if there has been
any change with respect to the matters set forth in the below-mentioned
Officers’ Certificate, the Company will furnish the Trustee and the principal
Paying Agent or Paying Agents, if other than the Trustee, an Officers’
Certificate instructing the Trustee and such Paying Agent or Paying Agents
whether such payment of principal (and premium, if any) of or interest on the
Securities of that series shall be made to Holders of Securities of that series
or the Coupons appertaining thereto who are United States Aliens without
withholding for or on account of any tax, assessment or other governmental
charge described in the Securities of that series. If any such withholding shall
be required, then such Officers’ Certificate shall specify by country the
amount, if any, required to be withheld on such payments to such Holders of
Securities or Coupons and the Company agrees to pay to the Trustee or such
Paying Agent the Additional Amounts required by this Section. The Company
covenants to indemnify the Trustee and any Paying Agent for, and to hold them
harmless against, any loss, liability or expense reasonably incurred without
negligence or bad faith on their part arising out of or in connection with
actions taken or omitted by any of them in reliance on any Officers’ Certificate
furnished pursuant to this Section. 

45

Section 1005. Statement As
To Compliance; Notice of Certain Defaults. 

(a) The Company will, in
addition to the reports required by Section 704(4), deliver to the Trustee,
within 120 days after the end of each fiscal year (which on the date hereof ends
on December 31), commencing December
31, 2013, a written statement, which need not comply with Section 102, signed by
the Chairman of the Board, a Deputy Chairman, Vice Chairman, the President or a
Vice President and by the Treasurer or an Assistant Treasurer of the Company,
stating, as to each signer thereof, that 

	              	(1)	       	a review of the
      activities of the Company during such year and of performance under this
      Indenture has been made under his supervision, and
		 
		(2)		to the best of his
      knowledge, based on such review, (a) the Company has fulfilled all of its
      obligations under this Indenture throughout such year, or, if there has
      been a default in the fulfillment of any such obligation, specifying each
      such default known to him and the nature and status thereof, and (b) no
      event has occurred and is continuing which is, or after notice or lapse of
      time or both would become, an Event of Default, or, if such an event has
      occurred and is continuing, specifying each such event known to him and
      the nature and status thereof.

(b) The Company will deliver
to the Trustee as soon as possible, and in any event, within five days after the
occurrence thereof, written notice of any event which after notice or lapse of
time or both would become an Event of Default. 

Section 1006. Payment of
Taxes and Other Claims. 

The Company will pay or
discharge or cause to be paid or discharged, before the same shall become
delinquent, (1) all taxes, assessments and governmental charges levied or
imposed upon the Company or any Subsidiary or upon the income, profits or
property of the Company or any Subsidiary, and (2) all lawful claims for labor,
materials and supplies which, if unpaid, might by law become a lien upon the
property of the Company or any subsidiary; 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. 

Section 1007. Corporate
Existence. 

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

Section 1008. Waiver of
Certain Covenants. 

The Company may omit in any
particular instance to comply with any term, provision or condition set forth in
Section 1006 with respect to the Securities of any series if before the time for
such compliance the Holders of at least a majority in principal amount of the
Outstanding Securities of such series shall, by Act of such Holders, either
waive such compliance in such instance or generally waive compliance with such
term, provision or condition, but no such waiver shall extend to or affect such
term, provision or condition except to the extent so expressly waived, and,
until such waiver shall become effective, the obligations of the Company and the
duties of the Trustee in respect of any such term, provision or condition shall
remain in full force and effect. 

Section 1009. Calculation
of Original Issue Discount.

The Company shall file with
the Trustee promptly at the end of each calendar year (i) a written notice
specifying the amount of original issue discount (including daily rates and
accrual periods) accrued on Outstanding Securities as of the end of such year
and (ii) such other specific information relating to such original issue
discount as may then be relevant under the Internal Revenue Code of 1986, as
amended from time to time. 

46

ARTICLE ELEVEN

REDEMPTION OF SECURITIES

Section 1101. Applicability
of Article. 

Redemption of Securities of
any series at the option of the Company as permitted or required by the terms of
such Securities shall be made in accordance with the terms of such Securities
and (except as otherwise provided herein or pursuant hereto) this Article.

Section 1102. Election To
Redeem; Notice To Trustee. 

The election of the Company to
redeem any Securities shall be evidenced by Board Resolution. In case of any
redemption at the election of the Company of the Securities of any series, with
the same issue date, interest rate and Stated Maturity, the Company shall, at
least 60 days prior to the Redemption Date fixed by the Company (unless a
shorter notice shall be satisfactory to the Trustee), notify the Trustee of such
Redemption Date and of the principal amount of Securities of such series to be
redeemed. 

Section 1103. Selection By
Trustee of Securities To Be Redeemed. 

If less than all the
Securities of any series with the same issue date, interest rate, Stated
Maturity and other terms 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 of the
principal amount of Registered Securities of such series; PROVIDED, HOWEVER,
that no such partial redemption shall reduce the portion of the principal amount
of a Registered Security of such series not redeemed to less than the minimum
denomination for a Security of such series established herein pursuant hereto.

If any Convertible 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 and the Security Registrar (if other than itself) in writing
of the Securities selected for redemption and, in the case of any Securities
selected for partial redemption, the principal amount thereof to be redeemed.

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

Section 1104. Notice of
Redemption. 

Notice of redemption shall be
given in the manner provided in Section 106, not less than 30 nor more than 60
days prior to the Redemption Date, unless a shorter period is specified in the
Securities to be redeemed, to the Holders of Securities to be redeemed. Failure
to give notice by mailing in the manner herein provided to the Holder of any
Registered Securities designated for redemption as a whole or in part, or any
defect in the notice to any such Holder, shall not affect the validity of the
proceedings for the redemption of any other Securities or portion thereof.

Any notice that is mailed to
the Holder of any Registered Securities in the manner herein provided shall be
conclusively presumed to have been duly given, whether or not such Holder
receives the notice. 

47

All notices of redemption
shall state: 

	       	(1)	       	the Redemption Date,
		 
		(2)		the Redemption Price,
		 
		(3)		if less than all outstanding Securities of
      any series are to be redeemed, the identification (and, in the case of
      partial redemption, the principal amount) of the particular Securities to
      be redeemed,
		 
		(4)		in case any Registered Security is to be
      redeemed in part only, the notice which relates to such Security shall
      state that on and after the Redemption Date, upon surrender of such
      Security, the Holder of such Security will receive, without charge, a new
      Registered Security or Registered Securities of authorized denominations
      for the principal amount thereof remaining unredeemed,
		 
		(5)		in the case of Convertible Securities, the
      Conversion Price then in effect, the date on which the right to convert
      the principal amount of the Securities or the portions thereof to be
      redeemed will terminate and the place or places where such Securities may
      be surrendered for conversion,
		 
		(6)		that on the Redemption Date the Redemption
      Price will become due and payable upon each such Security to be redeemed
      only, as to Bearer Securities, against tender of such Security and any
      Coupons appertaining thereto, and, if applicable, that interest thereon
      and Additional Amounts, if any, shall cease to accrue on and after said
      date,
		 
		(7)		the place or places where such Securities,
      together, in the case of Bearer Securities with all Coupons appertaining
      thereto, if any, maturing after the Redemption Date, are to be surrendered
      for payment of the Redemption Price,
		 
		(8)		that the redemption is for a sinking fund,
      if such is the case, and
		 
		(9)		the CUSIP number, if
  any.

A notice of redemption
published as contemplated by Section 106 need not identify particular Registered
Securities to be redeemed. 

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

Section 1105. Deposit of
Redemption Price. 

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

If any Convertible Security or
portion thereof called for redemption is converted pursuant to Article
Fifteen, any money deposited with the
Trustee or so segregated and held in trust for the redemption of such Security
or portion thereof shall (subject to any right of the Holder of the Security on
a Regular Record Date preceding such conversion to receive interest) be paid to
the Company upon Company Request or, if then held by the Company, shall be
discharged from such trust. 

48

Section 1106. Securities
Payable on Redemption Date. 

Notice of redemption having
been given as aforesaid, the Securities so to be redeemed shall, on the
Redemption Date, become due and
payable at the Redemption Price therein specified, and from and after such date
(unless the Company shall default in
the payment of the Redemption Price and accrued interest) such Securities shall
cease to bear interest and the Coupons for such interest appertaining to any
Bearer Securities so to be redeemed, except to the extent provided below, shall
be void. Upon surrender of any such Security for redemption in accordance with
said notice, together with all Coupons, if any, appertaining thereto maturing
after the Redemption Date, such Security shall be paid by the Company at the
Redemption Price, together with accrued interest (or any Additional Amounts) to
the Redemption Date; PROVIDED, HOWEVER, that installments of interest on Bearer
Securities whose Stated Maturity is on or prior to the Redemption Date shall be
payable only upon presentation and surrender of coupons for such interest (at an
office or agency located outside the United States except as otherwise provided
in Section 1002), and PROVIDED, FURTHER, that installments of interest on
Registered Securities 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
Regular Record Dates according to their terms and the provisions of Section 308.

If any Bearer Security
surrendered for redemption shall not be accompanied by all appurtenant Coupons
maturing after the Redemption Date, such Security may be paid after deducting
from the Redemption Price an amount equal to the face amount of all such missing
Coupons, or the surrender of such missing Coupon or Coupons may be waived by the
Company and the Trustee if there be furnished to them such Security or indemnity
as they may require to save each of them and any Paying Agent harmless. If
thereafter the Holder of such Security shall surrender to the Trustee or any
Paying Agent any such missing coupon in respect of which a deduction shall have
been made from the Redemption Price, such Holder shall be entitled to receive
the amount so deducted; PROVIDED, HOWEVER, that interest (or any Additional
Amounts) represented by Coupons shall be payable only upon presentation and
surrender of those Coupons at an office or agency located outside of the United
States except as otherwise provided in Section 1002.

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

Section 1107. Securities
Redeemed in Part. 

Any Registered Security which
is to be redeemed only in part shall be surrendered at any office or agency of
the Company maintained for that purpose pursuant to Section 1002 (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 Registered Security or
Securities of the same series, containing identical terms and provisions, 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. If a Security in global form is so surrendered, the
Company shall execute, and the Trustee shall authenticate and deliver to the
U.S. Depository or other depository for such Security in global form as shall be
specified in the Company Order with respect thereto to the Trustee, without
service charge, a new Security in global form in a denomination equal to and in
exchange for the unredeemed portion of the principal of the Security in global
form so surrendered. 

49

Section 1108. Conversion
Arrangements on Call for Redemption. 

Notwithstanding anything to
the contrary contained in this Indenture, in connection with any redemption of
Convertible Securities of any series, the Company, by an agreement with one or
more investment bankers or other purchasers, may arrange for such purchasers to
purchase all such Convertible Securities called for redemption (the “Called
Securities”) which are either (i) surrendered for redemption or (ii) not duly
surrendered for redemption or conversion prior to the close of business on the
Redemption Date, and to convert the same into shares of Common Stock, by the
purchasers’ depositing with the Trustee (acting as Paying Agent with respect to
the deposit of such amount and as conversion agent with respect to the
conversion of such Called Securities), in trust for the Holders of the Called
Securities, on or prior to the Redemption Date in the manner agreed to by the
Company and such purchasers, an amount sufficient to pay the Redemption Price,
payable by the Company on redemption of such Called Securities. In connection
with any such arrangement for purchase and conversion, the Trustee as Paying
Agent shall pay on or after the
Redemption Date such amounts so deposited by the purchasers in exchange for
Called Securities surrendered for redemption prior to the close of business on
the Redemption Date and for all Called Securities surrendered after such
Redemption Date. Notwithstanding anything to the contrary contained in this
Article Eleven, the obligation of the Company to pay the Redemption Price of
such Called Securities shall be satisfied and discharged to the extent such
amount is so paid by such purchasers. However, nothing in this Section 1108
shall in any way relieve the Company of the obligation to pay such Redemption
Price on all Called Securities to the extent such amount is not so paid by said
purchasers. For all purposes of this Indenture, any Called Securities
surrendered by the Holders for redemption, and any Called Securities not duly
surrendered for redemption or conversion prior to the close of business on the
Redemption Date, shall be deemed acquired by such purchasers from such Holders
and surrendered by such purchasers for conversion and shall in all respects be
deemed to have been converted, all as of immediately prior to the close of
business on the Redemption Date, subject to the deposit by the Purchasers of the
above amount as aforesaid. Nothing in this Section 1108 shall in any way limit
the right of any Holder of a Security to convert his Security pursuant to the
terms of this Indenture and of such Security at any time prior to the close of
business on the Redemption Date applicable thereto. 

ARTICLE TWELVE

SINKING FUNDS

Section 1201. Applicability
of Article. 

The provisions of this Article
shall be applicable to any sinking fund for the retirement of Securities of a
series, except as otherwise permitted or required by any form of Security of
such series issued pursuant to this Indenture. 

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

Section 1202. Satisfaction
of Sinking Fund Payments With Securities. 

The Company may, in
satisfaction of all or any part of any sinking fund payment with respect to the
Securities of such series to be made pursuant to the terms of such Securities as
provided for by the terms of such series (1) deliver Outstanding Securities of
such series (other than any of such Securities previously called for redemption
or any of such Securities in respect of which cash shall have been released to
the Company), together in the case of any Bearer Securities of such series with
all unmatured Coupons appertaining thereto, and (2) apply as a credit Securities
of such series which have been redeemed either at the election of the Company
pursuant to the terms of such series of Securities or through the application of
permitted optional sinking fund payments pursuant to the terms of such
Securities, PROVIDED that such series of 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. If as a result of the delivery or credit
of Securities of any series in lieu of cash payments pursuant to this Section
1202, the principal amount of Securities of such series to be redeemed in order
to exhaust the aforesaid cash payment shall be less than $100,000, the Trustee
need not call Securities of such series for redemption, except upon Company
Request, and such cash payment shall be held by the Trustee or a Paying Agent
and applied to the next succeeding sinking fund payment, PROVIDED, HOWEVER, that
the Trustee or such Paying Agent shall at the request of the Company from time
to time pay over and deliver to the Company any cash payment so being held by
the Trustee or such Paying Agent upon delivery by the Company to the Trustee of
Securities of that series purchased by the Company having an unpaid principal
amount equal to the cash payment requested to be released to the Company.

50

Section 1203. Redemption of
Securities For Sinking Fund. 

Not less than 75 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 mandatory 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 of Securities of that series pursuant to Section 1202,
and the optional amount, if any, to be added in cash to the next ensuing
mandatory sinking fund payment, and will also deliver to the Trustee any
Securities to be so credited and not theretofore delivered. If such Officers’
Certificate shall specify an optional amount to be added in cash to the next
ensuing mandatory sinking fund payment, the Company shall thereupon be obligated
to pay the amount therein specified. Not less than 60 days before each such
sinking fund payment date the Trustee shall select the Securities to be redeemed
upon such sinking fund payment date in the manner specified in Section 1103 and
cause notice of the redemption thereof to be given in the name of and at the
expense of the Company in the manner provided in Section 1104. Such notice
having been duly given, the redemption of such Securities shall be made upon the
terms and in the manner stated in Sections 1106 and 1107. 

ARTICLE THIRTEEN

REPAYMENT AT THE OPTION
OF HOLDERS 

Section 1301. Applicability
of Article. 

Securities of any series which
are repayable at the option of the Holders thereof before their Stated Maturity
shall be repaid in accordance with the terms of the Securities of such series.
The repayment of any principal amount of Securities pursuant to such option of
the Holder to require repayment of Securities before their Stated Maturity, for
purposes of Section 310, shall not operate as a payment, redemption or
satisfaction of the indebtedness represented by such Securities unless and until
the Company, at its option, shall deliver or surrender the same to the Trustee
with a directive that such Securities be cancelled. Notwithstanding anything to
the contrary contained in this Article Thirteen, in connection with any
repayment of Securities, the Company may arrange for the purchase of any
Securities by an agreement with one or more investment bankers or other
purchasers to purchase such Securities by paying to the Holders of such
Securities on or before the close of business on the repayment date an amount
not less than the repayment price payable by the Company on repayment of such
Securities, and the obligation of the Company to pay the repayment price of such
Securities shall be satisfied and discharged to the extent such payment is so
paid by such purchasers. 

ARTICLE FOURTEEN

MEETINGS OF HOLDERS

Section 1401. Purposes For
Which Meetings May Be Called. 

A meeting of Holders of
Securities of such series may be called at any time and from time to time
pursuant to this Article to make, give or take any request, demand,
authorization, direction, notice, consent, waiver or other action provided by
this Indenture to be made, given or taken by Holders of Securities of such
series. 

Section 1402. Call, Notice
and Place of Meetings. 

(a) The Trustee may at any
time call a meeting of Holders of Securities of any series for any purpose
specified in Section 1401, to be held at such time and at such place in the
Principle Office of the Trustee, or, if Securities of such series are to be
issued as Bearer Securities, in London, as the Trustee shall determine. Notice
of every meeting of Holders of Securities of any series, setting forth the time
and the place of such meeting and in general terms the action proposed to be
taken at such meeting, shall be given, in the manner provided in Section 106,
not less than 21 nor more than 180 days prior to the date fixed for the meeting.

51

(b) In case at any time the
Company, pursuant to Board Resolution, or the Holders of at least 10% in
principal amount of the Outstanding Securities of any series shall have
requested the Trustee to call a meeting of the Holders of Securities of such series for any purpose specified in Section
1401, by written request setting forth in reasonable detail the action proposed
to be taken at the meeting, and the Trustee shall not have made the first
publication of the notice of such meeting within 21 days after receipt of such
request or shall not thereafter proceed to cause the meeting to be held as
provided herein, then the Company or the Holders of Securities of such series in
the amount above specified, as the case may be, may determine the time and the
place for such meeting and may call such meeting for such purposes by giving
notice thereof as provided in subsection (a) of this Section. 

Section 1403. Persons Entitled To Vote At Meetings. 

To
be entitled to vote at any meeting of Holders of Securities of any series, a
Person shall be (1) a Holder of one or more Outstanding Securities of such
series, or (2) a Person appointed by an instrument in writing as proxy for a
Holder or Holders of one or more Outstanding Securities of such series by such
Holder or Holders. The only Persons who shall be entitled to be present or to
speak at any meeting of Holders of Securities of any series shall be the Persons
entitled to vote at such meeting and their counsel, any representatives of the
Trustee and its counsel and any representatives of the Company and its counsel.

Section 1404. Quorum; Action. 

The
Persons entitled to vote a majority in principal amount of the Outstanding
Securities of a series shall constitute a quorum for a meeting of Holders of
Securities of such series. In the absence of a quorum within 30 minutes after
the time appointed for any such meeting, the meeting shall, if convened at the
request of Holders of Securities of such series, be dissolved. In any other case
the meeting may be adjourned for a period of not less than 10 days as determined
by the chairman of the meeting prior to the adjournment of such meeting. In the
absence of a quorum at any such adjourned meeting, such adjourned meeting may be
further adjourned for a period of not less than 10 days as determined by the
chairman of the meeting prior to the adjournment of such adjourned meeting.
Notice of the reconvening of any adjourned meeting shall be given as provided in
section 1402 (a), except that such notice need be given only once not less than
five days prior to the date on which the meeting is scheduled to be reconvened.
Notice of the reconvening of an adjourned meeting shall state expressly the
percentage, as provided above, of the principal amount of the Outstanding
Securities of such series which shall constitute a quorum. 

Except as limited by the proviso to Section 902, any resolution presented
to a meeting or adjourned meeting duly reconvened at which a quorum is present
as aforesaid may be adopted only by the affirmative vote of the Holders of a
majority in principal amount of the Outstanding Securities of that series;
PROVIDED, HOWEVER, that, except as limited by the proviso to Section 902, any
resolution with respect to any request, demand, authorization, direction,
notice, consent, waiver or other action which this Indenture expressly provides
may be made, given or taken by the Holders of a specified percentage, which is
less than a majority, in principal amount of the Outstanding Securities of a
series may be adopted at a meeting or an adjourned meeting duly reconvened and
at which a quorum is present as aforesaid by the affirmative vote of the Holders
of such specified percentage in principal amount of the Outstanding Securities
of that series. 

Any
resolution passed or decision taken at any meeting of Holders of Securities of
any series duly held in accordance with this Section shall be binding on all the
Holders of Securities of such series and the Coupons appertaining thereto,
whether or not present or represented at the meeting. 

Section 1405. Determination of Voting Rights; Conduct and Adjournment of
Meetings. 

(a)
Notwithstanding any other provisions of this Indenture, the Trustee may make
such reasonable regulations as it may deem advisable for any meeting of Holders
of Securities of such series in regard to proof of the holding of Securities of
such series and of the appointment of proxies and in regard to the appointment
and duties of inspectors of votes, the submission and examination of proxies,
certificates and other evidence of the right to vote, and such other matters
concerning the conduct of the meeting as it shall deem appropriate. Except as
otherwise permitted or required by any such regulations, the holding of
Securities shall be proved in the manner specified in Section 104 and the
appointment of any proxy shall be proved in the manner specified in Section 104
or by having the signature of the person executing the proxy witnessed or
guaranteed by any trust company, bank or banker authorized by Section 104 to
certify to the holding of Bearer Securities. Such regulations may provide that
written instruments appointing proxies, regular on their face, may be presumed
valid and genuine without the proof specified in Section 104 or other proof.
 

52

(b)
The Trustee shall, by an instrument in writing, appoint a temporary chairman of
the meeting, unless the meeting shall have been called by the Company or by
Holders of Securities as provided in Section 1402(b), in which case the Company
or the Holders of Securities of the series calling the meeting, as the case may
be, shall in like manner appoint a temporary chairman. A permanent chairman and
a permanent secretary of the meeting shall be elected by vote of the Persons
entitled to vote a majority in principal amount of the Outstanding Securities of
such series represented at the meeting. 

(c)
At any meeting each Holder of a Security of such series or proxy shall be
entitled to one vote for each $1,000 principal amount of Securities of such
series held or represented by him; PROVIDED, HOWEVER, that no vote shall be cast
or counted at any meeting in respect of any Security challenged as not
Outstanding and ruled by the chairman of the meeting to be not Outstanding. The
chairman of the meeting shall have no right to vote, except as a Holder of a
Security of such series or proxy. 

(d)
Any meeting of Holders of Securities of any series duly called pursuant to
Section 1402 at which a quorum is present may be adjourned from time to time by
Persons entitled to vote a majority in principal amount of the Outstanding
Securities of such series represented at the meeting; and the meeting may be
held as so adjourned without further notice. 

Section 1406. Counting Votes and Recording Action of Meetings.

The
vote upon any resolution submitted to any meeting of Holders of Securities of
any series shall be by written ballots on which shall be subscribed the
signatures of the Holders of Securities of such series or of their
representatives by proxy and the principal amounts and serial numbers of the
Outstanding Securities of such series held or represented by them. The permanent
chairman of the meeting shall appoint two inspectors of votes who shall count
all votes cast at the meeting for or against any resolution and who shall make
and file with the secretary of the meeting their verified written reports in
triplicate of all votes cast at the meeting. 

A
record, at least in triplicate, of the proceedings of each meeting of Holders of
Securities of any series shall be prepared by the secretary of the meeting and
there shall be attached to said record the original reports of the inspectors of
votes on any vote by ballot taken thereat and affidavits by one or more persons
having knowledge of the facts setting forth a copy of the notice of the meeting
and showing that said notice was given as provided in Section 1402 and, if
applicable, Section 1404. Each copy shall be signed and verified by the
affidavits of the permanent chairman and secretary of the meeting and one such
copy shall be delivered to the Company and another to the Trustee to be
preserved by the Trustee, the latter to have attached thereto the ballots voted
at the meeting. Any record so signed and verified shall be conclusive evidence
of the matters therein stated. 

ARTICLE FIFTEEN 

SUBORDINATION 

Section 1501. Securities Subordinated To Senior Indebtedness.

The
Company covenants and agrees, and each Holder of Securities, by its acceptance
thereof, likewise covenants and agrees, that the indebtedness evidenced by the
Securities and the payment of the principal of (and premium, if any) and
interest on and any Additional Amounts payable in respect thereof is hereby
expressly subordinated, to the extent and in the manner hereinafter set forth,
in right of payment to the prior payment in full of Senior Indebtedness.

53

Anything in this Indenture or in the Securities of any series to the
contrary notwithstanding, the indebtedness evidenced by the Securities shall be
subordinate and junior in right of payment, to the extent and in the manner
hereinafter set forth, to all Senior Indebtedness: 

	       
    	(1)	In the event of any insolvency or bankruptcy proceedings, and any
      receivership, liquidation, reorganization, arrangement or other similar
      proceedings in connection therewith, relative to the Company or to its
      property, and in the event of any proceedings for voluntary liquidation,
      dissolution or other winding-up of the Company, whether or not involving
      insolvency or bankruptcy, then the holders of Senior Indebtedness shall be
      entitled to receive payment in full of all principal, premium and interest
      on all Senior Indebtedness before the Holders of the Securities are
      entitled to receive any payment on account of principal, premium, if any,
      interest or Additional Amounts upon the Securities, and to that end (but
      subject to the power of a court of competent jurisdiction to make other
      equitable provisions reflecting the rights conferred in the Securities
      upon Senior Indebtedness and the Holders thereof with respect to the
      subordinated indebtedness represented by the Securities and the Holders
      hereof by a lawful plan of reorganization under applicable bankruptcy law)
      the holders of Senior Indebtedness shall be entitled to receive for
      application in payment thereof any payment or distribution of any kind or
      character, whether in cash or property or securities, which may be payable
      or deliverable in any such proceedings in respect of the Securities after
      giving effect to any concurrent payment or distribution in respect of such
      Senior Indebtedness, except securities which are subordinate and junior in
      right of payment to the payment of all Senior Indebtedness then
      outstanding;
		           
    	
		(2)	In the event that any Security of any series is declared or
      otherwise becomes due and payable before its expressed maturity because of
      the occurrence of an Event of Default hereunder (under circumstances when
      the provisions of the foregoing clause (1) or the following clause (3)
      shall not be applicable), the holders of Senior Indebtedness outstanding
      at the time such Security so becomes due and payable because of such
      occurrence of an Event of Default hereunder shall, so long as such
      declaration has not been rescinded and annulled pursuant to Section 502,
      be entitled to receive payment in full of all principal of, and premium
      and interest on, all such Senior Indebtedness before the Holders of the
      Securities of such series are entitled to receive any payment on account
      of principal of, premium, if any, or interest and Additional Amounts on
      the Securities of such series. However, nothing herein shall prevent the
      Holders of Securities from seeking any remedy allowed at law or at equity
      so long as any judgment or decree obtained thereby makes provision for
      enforcing this clause; and
			 
		(3)	In the event that any default shall occur and be continuing with
      respect to any Senior Indebtedness permitting the holders of such Senior
      Indebtedness to accelerate the maturity thereof, if either
			 
			(A)	notice of
      such default, in writing or by telegram, shall have been given to the
      Company and to the Trustee, provided that judicial proceedings shall be
      commenced in respect of such default within 180 days in the case of a
      default in payment of principal or interest and within 90 days in the case
      of any other default after the giving of such notice, and provided further
      that only one such notice shall be given pursuant to this Section 1601(3)
      in any twelve months period, or
			           
    	 
			(B)	judicial
      proceedings shall be pending in respect of such default, the Holders of
      the Securities and the Trustee for their benefit shall not be entitled to
      receive any payment on account of principal, premium, if any, or interest
      and Additional Amounts thereon (including any such payment which would
      cause such default) unless payment in full of all principal of, and
      premium and interest on, such Senior Indebtedness shall have been made or
      provided for. The Trustee, forthwith upon receipt of any notice received
      by it pursuant to this Section 1601(3), shall, as soon as practicable,
      send a notice thereof to each Holder of Securities at the time outstanding
      as the names and addresses of such Holders appear on the Security
      Register.

In
case despite the foregoing provisions, any payment or distribution shall, in any
such event, be paid or delivered to any Holder of the Securities or to the
Trustee for their benefit before all Senior Indebtedness shall have been paid in
full, such payment or distribution shall be held in trust for and so paid and
delivered to the holders of Senior Indebtedness (or their duly authorized
representatives) until all Senior Indebtedness shall have been paid in full.
 

54

The
Company shall give written notice to the Trustee within five days after the
occurrence of any insolvency, bankruptcy, receivership, liquidation,
reorganization, arrangement or similar proceeding of the Company within the
meaning of this Section 1601. Upon any payment or distribution of assets of the
Company referred to in this Article Fifteen, the Trustee, subject to the
provisions of Section 315(a) through 315(b) of the Trust Indenture Act, and the
Holders of the Securities shall be entitled to rely upon a certificate of the
trustee in bankruptcy, receiver, assignee for the benefit of creditors or other
liquidating agent making such payment or distribution, delivered to the Trustee
or to the Holders of Securities, for the purpose of ascertaining the persons
entitled to participate in such distribution, the holders of the Senior
Indebtedness and other indebtedness of the Company, the amount thereof or
payable thereon, the amount or amounts paid or distributed thereon and all other
facts pertinent thereto or to this Article Fifteen. 

The
Trustee shall be entitled to conclusively rely on the delivery to it of a
written notice by a person representing himself to be a holder of Senior
Indebtedness (or a trustee or agent on behalf of such holder) to establish that
such notice has been given by a holder of Senior Indebtedness (or a trustee or
agent on behalf of any such holder). In the event that the Trustee determines,
in good faith, that further evidence is required with respect to the right of
any person as a holder of Senior Indebtedness to participate in any payment or
distribution pursuant to this Section 1601, the Trustee may request such person
to furnish evidence to the reasonable satisfaction of the Trustee as to the
amount of Senior Indebtedness held by such person, as to the extent to which
such person is entitled to participate in such payment or distribution, and as
to other facts pertinent to the rights of such person under this Section 1601,
and if such evidence is not furnished, the Trustee may defer any payment to such
person pending judicial determination as to the right of such person to receive
such payment. 

Section 1502. Subrogation. 

Subject to the payment in full of all Senior Indebtedness to which the
indebtedness evidenced by the Securities is in the circumstances subordinated as
provided in Section 1601, the Holders of the Securities shall be subrogated to
the rights of the holders of such Senior Indebtedness to receive payments or
distributions of cash, property or securities of the Company applicable to such
Senior Indebtedness until all amounts owing on the Securities shall be paid in
full. As between the Company, its creditors other than holders of such Senior
Indebtedness, and the Holders of the Securities, no such payment or distribution
made to the holders of such Senior Indebtedness by virtue of this Article
Fifteen which otherwise would have been made to the Holders of the Securities
shall be deemed to be a payment by the Company on account of such Senior
Indebtedness, it being understood that the provisions of this Article Fifteen
are and are intended solely for the purpose of defining the relative rights of
the Holders of the Securities on the one hand, and the holders of the Senior
Indebtedness, on the other hand. 

Section 1503. Obligation Of Company Unconditional. 

Nothing contained in this Article Fifteen or elsewhere in this Indenture
or in the Securities, 

	        	(1)	is intended to or shall impair as between
      its creditors other than the holders of Senior Indebtedness and the
      Holders of the Securities, the obligation of the Company which is absolute
      and unconditional, to pay to the Holders of the Securities the principal
      of (and premium, if any), interest on, or any Additional Amounts with
      respect to, the Securities as and when the same shall become due and
      payable in accordance with their terms, or
		           
    	
		(2)	is intended to or shall affect the relative
      rights of the Holders of the Securities and creditors of the Company other
      than the holders of Senior Indebtedness, or
			 
		(3)	
      prevent the Trustee or the Holder
      of any Security from exercising all remedies otherwise permitted by
      applicable law upon default under this Indenture, subject to the rights,
      if any, under this Article Fifteen of the holders of Senior Indebtedness
      in respect of cash, property or securities of the Company received upon
      the exercise of any such Upon any payment or distribution of assets of the
      Company referred to in this Article Fifteen, the Trustee and the Holders
      of the Securities shall be entitled to rely upon any order or decree made
      by any court of competent jurisdiction in which any such dissolution,
      winding up, liquidation or reorganization proceeding affecting the affairs
      of the Company is pending or upon a certificate of the trustee in
      bankruptcy, receiver, assignee for the benefit of creditors, liquidating
      trustee or agent or other person making any payment or distribution,
      delivered to the Trustee or to the Holders of the Securities, for the
      purpose of ascertaining the persons entitled to participate in such
      payment or distribution, the holders of the Senior Indebtedness and other
      indebtedness of the Company the amount thereof or payable thereon, the
      amount paid or distributed thereon and all other facts pertinent thereto
      or to this Article Fifteen. 

55

Section 1504. Payment On Securities Permitted. 

Nothing contained in this Article Fifteen or elsewhere in this Indenture,
or in any of the Securities, shall affect the obligation of the Company to make,
or prevent the Company from making payment of the principal of (or premium, if
any), interest or any Additional Amounts on the Securities in accordance with
the provisions hereof and thereof, except as otherwise provided in this Article
Fifteen. 

Section 1505. Effectuation Of Subordination by Trustee. 

Each
Holder of Securities, by his or her acceptance thereof, authorizes and directs
the Trustee in his or her behalf to take such action as may be necessary or
appropriate to effectuate the subordination provided in this Article Fifteen and
appoints the Trustee his or her attorney-in-fact for any and all such purposes.

Section 1506. Knowledge Of Trustee. 

Notwithstanding the provisions of this Article Fifteen or any other
provisions of this Indenture, the Trustee shall not be charged with knowledge of
the existence of any facts which would prohibit the making of any payment of
monies to or by the Trustee, or the taking of any other action by the Trustee,
unless and until the Trustee shall have received written notice thereof from the
Company, any Holder of the Securities, any paying agent of the Company or the
holder or representative of any class of Senior Indebtedness. 

Section 1507. Trustee’s Relation To Senior Indebtedness. 

Except as otherwise provided in the Trust Indenture Act, the Trustee
shall be entitled to all the rights set forth in this Article Fifteen with
respect to any Senior Indebtedness at the time held by it, to the same extent as
any other holder of Senior Indebtedness, and nothing in this Indenture shall
deprive the Trustee of any of its rights as such holder. Notwithstanding
anything in this Indenture or in the Securities of any series, nothing in this
Article Fifteen shall apply to or limit claims of or payment to the Trustee
under or pursuant to Sections 506 and 606. 

With
respect to holders of Senior Indebtedness, the Trustee undertakes to perform or
to observe only such of its covenants and obligations as are specifically set
forth in this Article Fifteen, and no implied covenants or obligations with
respect to the holders of Senior Indebtedness shall be read into this Indenture
against the Trustee. The Trustee shall not be deemed to owe any fiduciary duty
to the holders of Senior Indebtedness and the Trustee shall not be liable to any
holder of Senior Indebtedness if it shall pay over or deliver to Holders, the
Company or any other Person monies or assets to which any holder of Senior
Indebtedness shall be entitled by virtue of this Article Fifteen or otherwise.

No
recourse may be taken with respect to the obligations of the Issuer or the
Trustee against the Trustee in its individual capacity. 

56

Section 1508. Rights Of Holders Of Senior Indebtedness Not Impaired.

No
right of any present or future holder of any Senior Indebtedness to enforce the
subordination herein shall at any time or in any way be prejudiced or impaired
by any act or failure to act on the part of the Company or by any non-compliance
by the Company with the terms, provisions or covenants of this Indenture,
regardless of any knowledge thereof any such holder may have or be otherwise
charged with. 

ARTICLE SIXTEEN

CONVERSION

Section 1601. Conversion Privilege. 

Subject to and upon compliance with the provisions of this Article
Fifteen and the terms of the Convertible Securities of the series proposed to be
converted, at the option of the Holder, any Convertible Security or any portion
of the principal amount thereof which is $1,000 or an integral multiple thereof,
may be converted into shares of Common Stock, as said shares shall be
constituted at the Date of Conversion, at the Conversion Price for such
Convertible Securities of such series in effect at the Date of Conversion.

Section 1602. Manner of Exercise of Convertible Privilege.

In
order to exercise the conversion privilege, the Holder of any Convertible
Security to be converted shall surrender such Convertible Security to the
Company at its office or agency, together with the conversion notice in the form
provided on the Securities (or separate written notice) duly executed, and, if
so required by the Company, accompanied by instruments of transfer, in form
satisfactory to the Company and to the Trustee, duly executed by the Holder or
by his duly authorized attorney in writing. Any Registered Convertible Security
so surrendered during the period from the close of business on the Regular
Record Date preceding an Interest Payment Date for such Registered Convertible
Security to the opening of business on such Interest Payment Date shall (unless
any such Registered Convertible Security or the portion thereof being converted
shall have been called for redemption on a Redemption Date during such period,
in which event no interest shall be payable with respect to such Registered
Convertible Security or portion thereof, as the case may be, following such
Redemption Date) also be accompanied by payment in Clearing House funds or other
funds acceptable to the Company of an amount equal to the interest payable on
such Interest Payment Date on the principal amount of such Registered
Convertible Security then being converted; provided, however, that no such
payment need be made if there shall exist, at the time of conversion, a default
in the payment of interest on the Convertible Securities of such series. Except
as provided in the immediately preceding sentence, no adjustment shall be made
for interest accrued on any Convertible Security that shall be converted or for
dividends on any shares of Common Stock that shall be delivered upon the
conversion of such Convertible Securities. The funds so delivered to such office
or agency shall be paid to the Company on or after such Interest Payment Date,
unless the Company shall default in the payment of the interest due on such
Interest Payment Date, in which event such funds shall be repaid to the Person
who delivered the same. As promptly as practicable after the surrender of any
Convertible Security for conversion as aforesaid, the Company shall deliver at
said office or agency to such Holder, or on his written order, a certificate or
certificates for the number of full shares deliverable upon the conversion of
such Convertible Security or portion thereof and a check or cash in respect of
any fraction of a share of Common Stock otherwise deliverable upon such
conversion, all as provided in this Article Fifteen, together with a Convertible
Security or Convertible Securities of the same series in principal amount equal
to the unconverted and unredeemed portion, if any, of the Convertible Security
so converted in accordance with Section 306 hereof. Such conversion shall be
deemed to have been effected on the date on which such notice shall have been
received at said office or agency and such Convertible Security shall have been
surrendered as aforesaid, and the Person or Persons in whose name or names any
certificate or certificates for shares of Common Stock shall be deliverable upon
such conversion shall be deemed to have become on said date the Holder or
Holders of record of the shares represented thereby, provided, however, that any
such surrender on any date when the stock transfer books of the Company shall be
closed shall constitute the Person or Persons in whose name or names the
certificates are to be delivered as the record Holder or Holders thereof for all
purposes on the next succeeding day on which such stock transfer books are open,
but such conversion shall be at the Conversion Price in effect on the date of
such surrender.  

57

Section 1603. Cash Adjustment Upon Conversion. 

The
Company shall not be required to deliver fractions of shares of Common Stock
upon conversions of Convertible Securities. If more than one Convertible
Security shall be surrendered for conversion at one time by the same Holder, the
number of full shares which shall be deliverable upon conversion thereof shall
be computed on the basis of the aggregate principal amount of the Securities so
surrendered. If any fractional interest in a share of Common Stock would be
deliverable upon the conversion of any Convertible Security or Securities, the
Company shall make an adjustment therefor in cash equal to the current market
value of such fractional interest computed to the nearest cent either on the
basis of the last reported sale price regular way of the Common Stock on the
Nasdaq Global Market (or, if not listed on the Nasdaq Global Market, then on
such other exchange on which the shares of Common Stock are listed as the
Company may designate) on the last Business Day prior to the Date of Conversion
or, if there shall not have been a sale on such last Business Day, on the basis
of the average of the bid and asked quotations therefor on such exchange on such
last Business Day or, if the Common Stock shall not then be listed on any
exchange, at the highest bid quotation in the over-the- counter market on such
last Business Day as reported by the National Association of Securities Dealers
through NASDAQ, its automated system for reporting quotes, or its successor or
such other generally accepted source of publicly reported bid and asked
quotations as the Company may reasonably designate. 

Section 1604. Conversion Price. 

The
Conversion Price applicable to any series of Convertible Securities shall be the
initial Conversion Price set forth on the Officers’ Certificate or supplemental
indenture establishing such series adjusted as provided in this Article Fifteen.

Section 1605. Adjustment of Conversion Price. 

The
Conversion Price applicable to any series of Convertible Securities shall be
adjusted from time to time as follows: 

(a)
In case the Company shall, at any time or from time to time while the Securities
of any series are outstanding, (i) pay a dividend on its Common Stock in shares
of Common Stock, (ii) subdivide its outstanding shares of Common Stock into a
larger number of shares, or (iii) combine its outstanding Common Stock into a
smaller number of shares, the Conversion Price for such series in effect
immediately prior thereto shall be adjusted so that the Holder of any Security
of such series thereafter surrendered for conversion shall be entitled to
receive the number of shares of Common Stock or other securities of the Company
which he would have owned or have been entitled to receive after the happening
of any of the events described above, had such Convertible Security of such
series been converted immediately prior to the happening of such event. An
adjustment made pursuant to this subdivision (a) shall become effective, in the
case of a dividend, on the payment date retroactively to immediately after the
opening of business on the day following the record date for the determination
of shareholders entitled to receive such dividend, subject to the provisions of
paragraph (g) of this Section 1605, and shall become effective in the case of a
subdivision or combination immediately after the opening of business on the day
following the day when such subdivision or combination, as the case may be,
becomes effective. 

(b)
In case the Company shall, at any time or from time to time while the
Convertible Securities of any series are outstanding, issue rights or warrants
to all holders of its shares of Common Stock entitling them (for a period
expiring within 45 days of the record date mentioned below) to subscribe for or
purchase shares of Common Stock at a price per share less than the current
market price per share of Common Stock (as defined in paragraph (d) below) at
such record date, the Conversion Price of any series of Convertible Securities
in effect immediately prior to the issuance of such rights or warrants shall be
adjusted as follows: the number of shares of Common Stock into which $1,000
principal amount of Convertible Securities of such series was theretofore
convertible shall be multiplied by a fraction, of which the numerator shall be
the number of shares of Common Stock outstanding immediately prior to such
record date plus the number of additional shares of Common Stock offered for
subscription or purchase, and of which the denominator shall be the number of
shares of Common Stock outstanding immediately prior to such record date plus
the number of shares which the aggregate offering price of the total number of
shares so offered would purchase at such current market price; and the
Conversion Price for such series of Convertible Securities shall be adjusted by
dividing $1,000 by the new number of shares into which $1,000 principal amount
of Securities of such series shall be convertible as aforesaid. Such adjustment
shall become effective on the date of such issuance retroactively to immediately
after the opening of business on the day following the record date for the
determination of shareholders entitled to receive such rights or warrants,
subject to the provisions of paragraph (g) of this Section 1605. In determining
whether any rights or warrants entitle the holders to subscribe for or purchase
shares of Common Stock at less than such current market price, and in
determining the aggregate offering price of such shares, there shall be taken
into account any consideration received by the Company for such rights or
warrants, the value of such consideration, if other than cash, to be determined
by the Board of Directors. 

58

(c)
In case the Company shall, at any time from time to time while the Convertible
Securities of any series are outstanding, distribute to all holders of shares of
its Common Stock evidences of its indebtedness or securities or assets
(excluding cash dividends or cash distributions payable out of consolidated net
earnings or retained earnings) or rights or warrants to subscribe for shares of
Common Stock at a price per share less than the current market price per share
of Common Stock, determined in the manner set forth in paragraph (d) below, but
excluding rights or warrants referred to in paragraph (b) above, the Conversion
Price for such series of Convertible Securities in effect immediately prior to
such distribution shall be adjusted by multiplying the number of shares of
Common Stock into which $1,000 principal amount of Convertible Securities of
such series of Convertible Securities was theretofore convertible by a fraction,
of which the numerator shall be the current market price per share of Common
Stock (as defined in paragraph (d) below) on the record date for such
distribution, and of which the denominator shall be such current market price
per share of the Common Stock, less the then fair market value (as determined by
the Board of Directors of the Company, whose determination shall be conclusive)
of the portion of such evidences of indebtedness, securities or assets or of
such subscription rights or warrants so distributed applicable to one share of
Common Stock; and the Conversion Price for such series of Convertible Securities
shall be adjusted by dividing $1,000 by the new number of shares into which
$1,000 principal amount of Convertible Securities of such series shall be
convertible as aforesaid. Such adjustment shall become effective on the date of
such distribution retroactively to immediately after the opening of business on
the day following the record date for the determination of shareholders entitled
to receive such distribution, subject to the provisions of paragraph (g) of this
Section 1605. For the purposes of this paragraph (c) consolidated net earnings
or retained earnings shall be computed by adding thereto all charges against
retained earnings on account of dividends paid in shares of Common Stock in
respect of which the Conversion Price has been adjusted, all as determined by
Independent Public Accountants, whose determination shall be conclusive.

(d)
For the purpose of any computation under paragraphs (b) and (c) above, the
current market price per share of Common Stock at any date shall be deemed to be
the average of the market values of the shares of Common Stock for the ten
consecutive Business Days immediately preceding the day in question. The market
value of the Common Stock for each day shall be determined as provided in
Section 1603 hereof. 

(e)
The Company may make such reductions in the Conversion Price for any series of
Convertible Securities, in addition to those required by paragraphs (a), (b) and
(c) of this Section as it considers to be advisable in order that any event
treated for Federal income tax purposes as a dividend of stock or stock rights
shall not be taxable to the recipients. 

(f)
Except as herein otherwise provided, no adjustment in the Conversion Price for
any series of Convertible Securities shall be made by reason of the issuance, in
exchange for cash, property or services, of shares of Common Stock, or any
securities convertible into or exchangeable for shares of Common Stock, or
carrying the right to purchase any of the foregoing. 

(g)
If the Company shall take a record of the holders of its shares of Common Stock
for the purpose of entitling them to receive any dividend or any subscription or
purchase rights or any distribution and shall, thereafter and before the
distribution to shareholders of any such dividend, subscription or purchase
rights or distribution, legally abandon its plan to pay or deliver such
dividend, subscription or purchase rights or distribution, then no adjustment of
the Conversion Price for any series of Convertible Securities shall be required
by reason of the taking of such record.  

59

(h)
No adjustment in the Conversion Price for any series of Convertible Securities
shall be required unless such adjustment would require an increase or decrease
of at least 1% in such price; provided, however, that any adjustments which by
reason of this paragraph (h) are not required to be made shall be carried
forward and taken into account in any subsequent adjustment. All calculations
under this Article Fifteen shall be made to the nearest cent or to the nearest
one-hundredth of a share, as the case may be. 

(i)
Whenever the Conversion Price for any series of Convertible Securities is
adjusted as herein provided, the Company shall (i) forthwith place on file at
the Principal Office of the Trustee an Officers’ Certificate showing in detail
the facts requiring such adjustment and the Conversion Price after such
adjustment and shall exhibit the same from time to time to any Holder of
Convertible Securities of such series desiring an inspection thereof, and (ii)
cause a notice stating that such adjustment has been effected and the adjusted
Conversion Price to be mailed to the Holders of Registered Convertible
Securities of such series at their last addresses as they shall appear on the
Security Register. 

(j)
The Company may delete, modify or vary any of the provisions applicable to
conversion of the Convertible Securities of any series, or may add new
provisions applicable thereto, all as may be contained in the Board Resolutions
and Officers’ Certificate or supplemental indenture establishing such series.

Section 1606. Effect of Reclassifications, Consolidations, Mergers or
Sales on Conversion Privilege. 

In
case of any reclassification or change of outstanding shares of the class of
Common Stock issuable upon conversion of the Convertible Securities (other than
a change in par value, or from par value to no par value, or from no par value
to par value, or as a result of a subdivision or combination), or in case of any
merger or consolidation of the Company with one or more other corporations
(other than a merger or consolidation in which the Company is the continuing
corporation and which does not result in any reclassification or change of
outstanding shares of Common Stock issuable upon conversion of the Securities),
or in case of the merger of the Company into another corporation, or in case of
any sale or conveyance to another corporation of the property of the Company as
an entirety or substantially as an entirety, the Holder of Convertible
Securities then outstanding shall have the right to convert such Convertible
Security into the kind and amount of shares of capital stock or other securities
and property, including cash, receivable upon such reclassification, change,
consolidation, merger, sale or conveyance by a holder of the number of shares of
Common Stock into which such Convertible Security might have been converted
immediately prior to such reclassification, change, consolidation, merger, sale
or conveyance. In any such case the Company, or such successor or purchasing
corporation, as the case may be, shall execute with the Trustee one or more
supplemental indentures (which shall conform to the Trust Indenture Act of 1939
as in force at the date of the execution of such supplemental indenture)
containing provisions to the effect set forth above in this Section 1606 and
providing further for adjustments which shall be as nearly equivalent as may be
practicable to the adjustments provided for in this Article Fifteen; and any
such adjustment which shall be approved by the Board of Directors and set forth
in such supplemental indenture or supplemental indentures shall be conclusive
for all purposes of this Section, and the Trustee shall not be under any
responsibility to determine the correctness of any provision contained in such
supplemental indenture or supplemental indentures relating to either the kind or
amount of shares of stock or securities or property receivable by Holders of
Securities of any series upon the conversion of their Convertible Securities
after any such reclassification, change, consolidation, merger, sale or
conveyance. 

The
above provisions of this Section 1606 shall similarly apply to successive
reclassifications, changes, consolidations, mergers, sales and conveyances.

Section 1607. Taxes on Conversions. 

The
issue of stock certificates on conversions of Convertible Securities shall be
made without charge to the converting Holder of Convertible Securities for any
tax in respect of the issue thereof. 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 in any name other than that of the Holder of any
Registered Convertible Security converted, and the Company shall not be required
to issue or deliver any such stock certificate unless and until the Person or
Persons requesting the issue thereof shall have paid to the Company the amount
of such tax or shall have established to the satisfaction of the Company that
such tax has been paid. 

60

Section 1608. Company to Reserve Common Stock. 

The
Company shall at all times reserve and keep available out of the aggregate of
its authorized but unissued shares or its issued shares held in its treasury, or
both, for the purpose of effecting the conversion of the Securities, such number
of its duly authorized shares of Common Stock as shall from time to time be
sufficient to effect the conversion of all outstanding Securities. 

If
any shares of Common Stock reserved or to be reserved for the purpose of
conversion of Securities hereunder require registration with or approval of any
governmental authority under any Federal or State law before such shares may be
validly delivered upon conversion, then the Company covenants that it will in
good faith and as expeditiously as possible endeavor to secure registration or
approval, as the case may be. 

The
Company covenants that all shares of Common Stock which may be delivered upon
conversion of Convertible Securities shall upon delivery be fully paid and
nonassessable by the Company and free from all taxes, liens and charges with
respect to the issue or delivery thereof. 

Section 1609. Disclaimer by Trustee of Responsibility for Certain
Matters. 

Neither the Trustee nor any conversion agent shall at any time be under
any duty or responsibility to any Holder of Convertible Securities of any series
to determine whether any facts exist which may require any adjustment of the
Conversion Price for such series, 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,
subject, however, to the provisions of Sections 315(a) through 315(b) of the
Trust Indenture Act. Neither the Trustee nor any conversion agent shall be
accountable with respect to the validity or value (or the kind or amount) of any
shares of Common Stock, or of any securities or property which may at any time
be issued or delivered upon the conversion of any Convertible Security; and
neither of them makes any representation with respect thereto. Neither the
Trustee nor any conversion agent shall be responsible for any failure of the
Company to make any cash payment or to issue, transfer or deliver any shares of
Common Stock or stock certificates or other securities or property upon the
surrender of any Security for the purpose of conversion or, subject to Sections
315(a) through 315(b) of the Trust Indenture Act, to comply with any of the
covenants of the Company contained in this Article Sixteen. 

Section 1610. Company to Give Notice of Certain Events. 

In
the event: 

	        	(1)	that the Company
      shall pay any dividend or make any distribution to the holders of shares
      of Common Stock otherwise than in cash charged against consolidated net
      earnings or retained earnings of the Company and its consolidated net
      earnings or retained earnings of the Company and its consolidated
      subsidiaries or in Common Stock; or
		           
    	
		(2)	that the Company
      shall offer for subscription or purchase, pro rata, to the holders of
      shares of Common Stock any additional shares of stock of any class or any
      securities convertible into or exchangeable for stock of any class;
      or
		           
    	
		(3)	of any
      reclassification or change in outstanding shares of the class of Common
      Stock issuable upon the conversion of the Securities (other than a change
      in par value, or from par value to no par value, or from no par value to
      par value, or as a result of a subdivision or combination), or of any
      merger or consolidation of the Company with, or merger of the Company
      into, another corporation (other than a merger or consolidation in which
      the Company is the continuing corporation and which does not result in any
      reclassification or change of outstanding shares of Common Stock issuable
      upon conversion of the Securities), or of any sale or conveyance to
      another corporation of the property of the Company as an entirety or
      substantially as an entirety; 

61

then, and in any one or more
of such events, the Company will give to the Trustee and each conversion agent
written notice thereof at least fifteen days prior to (i) the record date fixed
with respect to any of the events specified in (1) and (2) above, and (ii) the
effective date of any of the events specified in (3) above; and shall mail
promptly a copy of such notice to the Holders of Registered Convertible
Securities at their last addresses as they shall appear upon the Security
Register. Failure to give such notice, or any defect therein, shall not affect
the legality or validity of such dividend, distribution, reclassification,
consolidation, merger, sale, transfer, dissolution, liquidation or winding up.

* * * * * 

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. 

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

	SOUTHERN FIRST BANCSHARES, INC.
	 
	 
	By:	 
		      
      Name:
		      
      Title:
	 
	 
	[                       
      ],
	not in its individual capacity but solely as
      Trustee
	 
	 
	By:	
		      
      Name:
		      
      Title:

62

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